Morning Buzz for Mar 08, 2012 – MR Securities

Karachi: Pakistan Social Safety Project: World Bank approves credit worth $150m as additional financing

According to MR Securities,

The World Bank has approved a credit worth $150 million as additional financing for the Pakistan Social Safety Net Project aimed at supporting the expansion and strengthening the performance of Pakistan’s safety net system under the Benazir Income Support Program (BISP)

Key positive developments: analysts revise KSE index target to 14,300
The government’s likely acceptance of SECP capital gain tax (CGT) proposal, better than anticipated foreign flows and improved earnings projection are key positive developments that have compelled the analysts to revise their 2012 KSE-100 index target from 13000 to 14300 points.

SECP clarifies on broker-to-broker trading
According to the clarifications, no broker whether individual or corporate can trade with any other broker of the same exchange on proprietary and/or client account. Similarly, chief executive/managing director (with whatever name called) and nominee director of a brokerage house can only trade through the brokerage house which he/she is associated with in the said capacity.

Gas supply to fertilizer sector, industries restored
The government has restored gas supply to fertilizer sector and industries due to improved gas supply situation with the onset of spring leading to a decline in demand by the domestic sector.

1.39 million New gas connections provided in four years
Sui-Northern Gas Pipelines Limited (SNGPL) and Sui-Southern Gas Company Limited (SSGCL) have provided a total 1.39 million new gas connections during the last four years due to political compulsions and in defiance of economic compulsions, it is learnt.

Fiscal Year 2012 revenue collection: several factor adversely impacting on target
One percent decrease in the rate of sales tax, withdrawal of special excise duty (SED) and end of flood surcharge were adverse factors on revenue collection during 2011-12.

SNGPL revises number of gas distribution zones to two
The Sui Northern Gas Pipeline (SNGPL) made another revision to the gas distribution zones, bringing it to two from three within 24 hours.

Current Year 2011 banking industry NPLs surge by Rs 56 billion
Non-Performing Loans of banking industry posted a phenomenal rise of over Rs 56 billion at the end of calendar year 2011 (CY11), creating new challenges and credit risks for the financial sector of Pakistan.

BOK assets increased by Rs 68 billion in 2011
Bank of Khyber assets increased by Rs 68 billion in 2011 showing growth of 35 percent over assets of 2010.

ADB becomes major donor by releasing $471.1 million
Asian Development Bank has been the major foreign donor to Pakistan by releasing $471.1 million against total foreign disbursement of $1.35 billion received during the first eight months of the current fiscal year.

Govt borrows Rs28bn from SBP in a week
After digging deep into the pockets of the commercial banks, the government has turned back to the State Bank of Pakistan (SBP), borrowing Rs28.19 billion in just one week.

Textile sector loses export orders worth $1bn in seven months
Pakistan’s key textile sector has lost export orders worth an estimated $1 billion in the first seven months of the current fiscal year due to crippling power outages which has severely impacted production thereby forcing global buyers to shift their orders to other countries

Allotment of shares approved
In order to complete the subscription of unsubscribed Right Shares, the Board of Directors of Silkbank has approved the allotment of 1,028,710,173 shares to Shaukat Tarin.

Fuel import: Qatar quotes hefty price for its LNG
Qatar has demanded $18 per Million British Thermal Unit (mmbtu) for LNG import to Pakistan, a price that seems to be much higher than expectations as potential buyers have said they will not purchase the fuel at the current price, according to an official.

Government accepts resignation of Ali Raza
The Federal government has accepted the resignation of S Ali Raza, Chairman, Board of Directors of National Bank of Pakistan with immediate effect.

Indus Water Treaty effective no longer?
Indus Water Treaty has now become ineffective as India is continuously violating all clauses of the treaty and Pakistan is not challenging them at any international forum by tacit approbation.

Aptma criticizes India for banning cotton exports
Chairman All Pakistan Textile Mills Association (APTMA) Mohsin Aziz has criticized India for banning cotton exports and termed it as against the international trade norms. He said all cotton trade agreements, took place prior to the export ban, have been held back Indian exporters and dishonouring their commitments.

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