Morning Buzz for July 26, 2012 – MR Securities

Karachi, July 26, 2012 (PPI-OT): Government given two more weeks to write letter

According to MR Securities,

The Supreme Court on Wednesday gave the government two more weeks to write a letter to Swiss authorities to revive graft cases against President Asif Ali Zardari.

Corporate results: Fauji Fertilizer Company makes Rs10b in six months
Fauji Fertilizer Company – one of the companies not affected by the gas supply issue – saw its net profit jump 26% to Rs10.34 billion in January to June 2012.

Fertiliser plants on SNGPL network face Rs5.5b losses
In the first half of 2012 (1H-CY12), fertiliser plants on the Sui Northern Gas Pipelines Limited (SNGPL) network faced collective losses to the tune of Rs5.5 billion in lost revenues. These plants include Agritech, Dawood Hercules Fertilizers, Pak-Arab Fertilizer and Engro’s Enven project.

FY12 results on August 8: PPL likely to announce impressive earnings of Rs 32.78 per share
Pakistan Petroleum Limited (PPL) is scheduled to announce its FY12 result on August 08, 2012. PPL is expected to announce impressive earnings of Rs 32.78 per share for FY12, up 37 percent on year-on-year basis, though fourth quarter is likely to report a decline of 11 percent on quarter-on-quarter basis owing to lower international oil prices, analysts said.

Telenor continues to perform well in Q2 of 2012
Telenor Pakistan posted record quarterly revenue of Rs 23 billion according to the latest figures released by the Telenor Group. It added 615,000 subscriptions during April-June, ending with 29.9 million subscribers, a growth of 12 percent over the same quarter last year

Power crisis: PM rejects plan to increase outages for industrial sector
Amidst violent street protests sparked by a ballooning energy crisis in the country, Prime Minister Raja Pervaiz Ashraf has rejected a proposal to increase the duration of load-shedding for the industrial sector.

Exporters’ buying spree: wheat prices surge by Rs 1,250 per ton
Hasty buying of wheat for export market has created panic in the commodity market with wheat price registering an increase of Rs 1,250 per ton in the domestic market during a week.

Garment exports down by $139 million: manufacturers
The domestic garment exports fell by $139 million in the fiscal year 2012, prompting manufacturers and exporters to call for financial assistance to salvage their production losses and overcome soaring cost of doing business.

PACRA withdraws negative ratings of BOP
The negative outlook earlier assigned to BOP’s ratings has been withdrawn by PACRA. Now the assigned stable outlook captures the improvement in the bank’s financial profile that would enable it to build up to fundamentals more commensurate with existing ratings.

Tax reform programme failed to deliver, govt admits
Tax authorities have observed that the Pakistan Tax Administration Reform Programme (TARP) has failed to produce desired results due to weak supervision of the World Bank.

Govt agrees to pay Rs24 billion to IPPs in 3 months
Pakistan government has submitted before the Supreme Court that a payment of Rs24 billion would be made to eight IPPs in three equal monthly instalments of Rs8 billion a month.

New forays: State Life to enter Islamic insurance market
Within days of regulators announcing that conventional insurance firms would be allowed to set up “Islamic windows”, State Life Insurance Corporation – the largest insurance company in the country – has made clear its intentions of launching its own brand of Shariah-compliant insurance products.

Telecom companies’ issue may cause reshuffle in FBR
The cases of telecom companies on interconnection charges are likely to become a highly controversial basis for a high-level reshuffle in the Federal Board of Revenue (FBR) and field formations.

$1.12 billion payment expected from US this week
Declining reserves are getting a temporary relief with an expected transfer of $1.12 billion as part payment for services provided to coalition forces.

Green Tractor Scheme: August 22 last date for applications
The Punjab government has fixed August 22 as the last date for submission of applications for participation in the process for availing the Green Tractor Scheme under which 20,000 tractors would be given to the farmers on subsidized rates.

Prices of chicken meat show sharp decline
Contrary to the other kitchen items, prices of poultry products have registered a sharp decline after the arrival of Ramadan, as the chicken meat rate has fallen by over Rs 90 per Kg while live bird prices have dropped by Rs 60 during the last one week, endorsing the view that no stakeholder is in a position of manipulation and only market forces are fixing the rates.