Thursday, August 20, 2009 KARACHI - Electronic banking (e-banking) and branchless banking transactions continued to show growth momentum as both the volume and value of these transactions displayed a rising trend in the country during the last quarter of the fiscal year (FY2008-09). According to the Fourth Quarterly Report on Branchless Banking/ Electronic Banking, the volume and value of e-banking/ branchless banking transactions in the country reached at 44.5 million and Rs 3.9 trillion respectively showing an increase of 11.1 percent in number and 7.8 percent in value as compared to 6.5 percent increase in number and 11.4 percent increase in value in the previous quarter of FY09 (Jan-March 2009). During the fourth quarter (April-June) of FY09, the volume and value of online banking transactions in the country reached at 13.7 million and Rs 3.7 trillion respectively showing a growth of 10.8 percent in numbers and 7.4 percent increase in value as compared to 14.8 percent increase in numbers and 11.7 percent increase in value in the previous quarter. According to the report, during the fourth quarter, the volume and value of ATM transactions in the country reached at 25.2 million and Rs 189.0 billion respectively showing a growth of 12 percent in numbers and 12.2 percent increase in value as compared to 5.2 percent increase in numbers and 10.2 percent increase in value in the third quarter. During the period under review, the volume and value of internet transactions in the country recorded at 0.6 million and Rs 22.2 billion respectively, showing an increase of 15.4 percent in numbers and 35.7 percent increase in value as compared to 2.8 percent decline in numbers and 2.1 percent increase in value in the previous quarter. Whereas, the volume and value of mobile transactions in the country recorded at 21,733 and Rs 4.9 million respectively showing an increase of 40.6 percent in numbers and 48.2 percent increase in value as compared to 12.1 percent decline in numbers and 15.4 percent decline in value in the previous quarter.According to the report, the total quantity of ATM machines during April-June, 2009 period reached at 3,999 registering a growth of 5.7 percent as compared to 7.4 percent increase in the previous quarter. The volume of Real Time Online Branches (RTOB) during the quarter reached at 6,040 and recorded a growth of 1.3 percent as compared to 1.8 percent increase recorded in the previous quarter. The total quantity of POS terminal reached at 49,715 showing an increase of 2.7 percent in number as compared to 1.1 percent decline in previous quarter. It said that total quantity of cards (debit / credit /ATM only) in circulation during fourth quarter of FY09 reached at 8.9 million which shows an increase of 6.6 percent as compared to 3.1 percent decline in the previous quarter. The quantity of credit cards has decreased by 0.6 percent as compared to 6.2 percent decrease in the previous quarter. The quantity of debit cards has increased by 9.6 percent as compared to 2.5 percent decline in previous quarter and stood at 6.4 million, it added. The report pointed out that paper-based instrument during the fourth quarter of FY09 witnessed a growth of 4.8 percent to 85.6 million in numbers compared with 1.4 percent decline in the previous quarter (81.7 million). The value of transactions decreased by 6.1 percent to Rs 33.1 trillion as against 1.6 percent increase or Rs 35.3 trillion recorded during third quarter of FY09. It said that during the last six quarters the transition from manual (paper-based) banking to e-banking has been gradual, yet consistent, in terms of both volume and value of transactions. The composition (in percentage) of electronic transactions increased to 34.2 percent of the total number of transactions as compared to 32.9 percent recorded last quarter. In terms of value, the same increased by 10.5 percent as compared to 9.3 percent rise recorded last quarter. (The Nation)
Thursday, August 20, 2009 KARACHI - Profit-taking once again changed the upward direction of the Karachi Stock exchange and benchmark 100-share index shed 42 points to close at 7,952 points on Monday. Investors at the market booked profits in oil, banks and fertilizer scrips after disappointed results in oil refineries and banking sector scrips. Low volume strength in the banking stocks did allow the benchmark a positive opening. Strength, however, faced fresh float from the local front thus keeping the resistance of 8090-8097 active. Benchmark did manage positive stance, mainly due to renewed buying interest in the highest beneficiary of a likely resolve of the circular debt issue. Gains in PSO allowed the positivism to prevail while midday stagnation forced massive rate erosion. Switching led red numbers in Oil and Gas exploration sector, wherein the stocks trading at higher multiples witnessed off-loading while the cheaper stocks of the sector continued to invite buying interest at adjusted levels. The KSE-100 index kicked-off the day with a gain of 27.60 points and index was unable to maintain the positive stance. Benchmark closed the day at 7,952.70 points, showing a loss of 42.40 points. Trading activity slightly improved as compared to the last trading session. The market turnover stood at 122.952 million shares on Wednesday as compared to last trading session s 106.865 million shares on Tuesday. Total trading value of the KSE increased to Rs 7.25b against last session s Rs 5.47b. Market men remained concerned over falling corporate earnings, rise in leverage costs and lack of leverage availability in the market. Moreover, rise in cement export figures this month and rise in international oil prices failed to support the overbought market , stated research analyst Ahsan Mehanti. Market capitalisation moved down to Rs 2.343tr as compared to Rs. 2.354tr of last trading session. Out of 382 active stocks at the Karachi stock market, at least 169 advanced, 193 declined while the worth of the shares of 20 cos remained unchanged.Immense selling in banking stocks, still in grip of NPL phobia, did push the index in the negative territory. Cement export numbers, however, invited buying interest in the main board stocks of the sector, thus pulling the sector out of CCP and low local demand phobia, textile stocks and low price stocks of the sectors likely to outperform the economy witnessed accumulation with decent turnover, thus indicating likely rally in upcoming sessions. The unconfirmed news that the local bourses will be re-considered for inclusion in MSCI next year was actually a negative development, as previously the inclusion was scheduled in September this year, its seems that shallowness led price erosion mainly due to low turnover , said market expert Hasnain Asghar Ali. DGKC proved itself a true volume leader and remained on the top with the trading of 23.103m shares on Wednesday, followed by PTCL with 10.135m shares, Lucky Cement 8.923m shares, Pak Oilfields 8.653m shares, ODGC 7.224m shares, NML 5.260m shares, NBP 5.062m shares, AHSL 3.3m shares, ANL 3.187m shares, MCB 2.962m shares namely. Top gainers at the stock exchange include Fazal Textile, up by Rs12.87/share to close at Rs363.87 with the trading of only 15 shares, Pak Services gained Rs8.85/share, closing at Rs178.88, Siemens Pak Engineering added Rs8.33/share and its total value was improved to Rs1,110, Indus Motor up by Rs6.80/share and closed at Rs142.89, Clariant Pak added Rs6.03/share to close at Rs126.80. On the other side, Wyeth Pak lost massive Rs66.30/share to close at Rs1,259.81, Treet Corporation down by Rs27.41/share and its value was decreased to Rs533.59, Bata Pak down by Rs27/share and closed at Rs705, Nestle Pak lost Rs10/share, closing at Rs1,130 with a small turnover of only 4 shares, Sanofi-Aventis down by Rs7.59/share to close at Rs144.39. (The Nation)
Thursday, August 20, 2009 KARACHI - Trading Corporation of Pakistan (TCP) has a sufficient stock of locally purchased and imported sugar at its godowns and designated sugar mills and further building up stocks through imports on the instructions of federal government. This was stated by the chairman TCP Saeed Ahmed Khan while talking to newsmen at his office here Wednesday. He said that TCP has about 166,000 metric tons of locally procured sugar from mills and 75,000 MT of imported sugar, making a total stock of 241,000 MT. At the same time, we had awarded a contract for the import of 50,000 MT of sugar from international sources, of which about 12,500 MT of sugar is reaching Karachi by August 22, 2009. We have also floated a tender for the import of 75,000 MT of sugar. This will be opened on August 29, 2009. This will also add to the existing stock, he added. Saeed Khan said that TCP has already issued delivery orders for the supply of 50,000 MT of sugar to Utility Stores Corporation (USC) at Rs 37,500 per ton. Now it is upto USC how quickly they lift this sugar from their specified nearest sugar mill and sell to their consumers , he added. He said that the media has incorrectly blamed TCP for the shortage of sugar at USC outlets. We are not at all responsible for this crisis. USC is facing lifting problems and they are not able to lift sugar in time due to insufficient transportation capacity. This is the reason that the Ministry of Industries and Production has sought the support of National Logistic Cell (NLC) to rapidly transport sugar from mills to USC stock area, he noted.aeed Khan said that TCP had started the process of importing sugar on the instructions of ECC since January this year in a staggered manner. We awarded contract for the import of 25,000 of sugar at $ 451/ton, This was supplied in April, 2009. Similarly, 50,000 was imported at $474 in June 2009, and another 50,000 at $494/ton. The weighted average price of all the imported sugar comes to Rs 55/kg. We are selling this sugar to USC at Rs 38 a kilo. The federal government will bear the difference of procurement and selling prices, he added. To a question about the reason of high international price of sugar, he said that entry of India has boosted sugar prices as it is facing a shortage of about 500,000 tons due to late monsoon. He said that TCP is mandated to work on the instructions of federal government to import or export essential commodities like sugar, wheat, urea, cotton or rice and maintain their buffer stock to meet any crisis in the country. We cannot take any action at our own, he observed. TCP chairman said that ECC has again decided to allow the import of 300,000 MT of raw sugar by mills and 100,000 MT of white sugar by TCP. We are waiting for the orders, he added. (The Nation)
Current account deficit narrows by $576m in July
Posted by imdurrani Labels: budget, Pak Economy, pakistanThursday, August 20, 2009 KARACHI - Pakistan s current account deficit has contracted by Rs576 million to Rs606 million during the first month of current fiscal year 2009-10. However, current account deficit amounted to $1.1 billion in the same month of last financial year. In percentage the YoY growth in current account deficit has sharply declined by 48.7 per cent during the single month of July, 2009 on the backdrop of considerable fall in trade deficit and a meager improvement in external inflows (current transfers), particularly remittances during the period under review. In the month of July, current account balance without off transfers stood at $609 million as against $1.22 billion recorded in the same month of last financial year. Consequently, entire stock of foreign exchange reserve showed a sign of stability as only SBP gross reserves amounted to $9.5 billion (excluding reserves of commercial banks) during July F10. The statistics on balance of payments position compiled by SBP for the month ended on July 31, 2009 revealed that total goods exports slashed to $1.5 billion during July from $1.9 billion of the corresponding month of previous year while imports declined to $2.7 billion from $3.4 billion registered in the FY09. Trade balance decreased to $1.2 billion in July 2009 as against $1.3 billion of last fiscal. Balance of goods and services reached the level of $1.5 billion during the reviewed month as compared to $1.8 billion of FY09. Trade deficit significantly dropped to 1.150 billion dollars during the first month of current financial year. The YoY growth in a trade deficit had squeezed by 31.9 per cent during the single month of July 2009. Pakistan s total exports amounted to $1.488 billion in the month of July of ongoing fiscal year from $1.879 during the corresponding month of last year whereas imports stood at $ 2.639 billion as against $1.879 of previous year. Income account deficit decelerated to $46 million in July FY10 from $65 million of the same month of previous year. Unlike the previous year, current transfers up to $1.17 billion during analytical month of ongoing financial year. Capital account had down to $1 million during July as against $3m witnessed in the equivalent period of FY10. Financial account slashed to $50.10 billion during reviewed period as against $81.35b of preceding year. This decline was a result of confluence of factors such as weakening economic fundamentals, deteriorating law and order situation, slack functioning of stock market, lack of privatisation proceeds and in the presence of global financial crisis, the foreign investors shied away from investing as expectations of the lower degree of profitability and host of risks and uncertainties. Worsening law and order situation, below-than-anticipated performance of stock market and risk averse behavior of foreign investors hampered capital and financial flows to Pakistan whereby the net inflow of foreign investment declined to $2 million. In line with the trend in emerging economies stock markets, investors are taking their investment out from Pakistan s equity market which contributed portfolio investment to decline to $3 million during July-FY09. State Bank predicts the external current account deficit may come under 5.0 percent of GDP in FY10. Provided projected foreign inflows are realised SBP s foreign exchange reserves could improve further to over $12 billion in this fiscal year. The central bank further believes exports may improve slightly if global recovery sets in by the beginning of 2010, as many anticipate. Similarly, imports could pick up also assuming domestic economic recovery. Nevertheless, both are still expected to see a fall from fiscal year 09. SBP also said there has been considerable improvement here in the course of the year. Meanwhile, foreign trade experts have indicated a further reduction in the current account deficit in the months to come. Vulnerabilities remain, however, given that our exports and markets are highly concentrated, and slow recovery in those markets will restrain exports. Imports remain vulnerable to price pressures from any rises in oil, commodity and basic raw material prices. Deterioration in the current account will directly affect the foreign exchange reserves position.
Thursday, August 20, 2009 KARACHI -The Competition Commission of Pakistan (CCP) has directed Pakistan Sugar Mills Association (PSMA) Vice Chairman Javed Kayani to clarify his position regarding his statement, threatening stopping of sugarcane crushing.
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