Brokers preview NIT-IF as dull scrip

KARACHI: The Income Fund of National Investment Trust Limited would be enlisted in Karachi Stock Market after the completion of its initial public offering which is going to commence from February 15 till February 19, 2010. However, most of the stock market experts opined that the said fund does not have any strength to make any difference in trading volumes in the bourse. Moreover, due to its fixed rate return, the NIT Income Fund does not have any strong prospects of securing capital gains and will be treated as a dull security by the experienced traders. However, the Chairman of NITL Tariq Iqbal Khan has said that the NIT Income Fund would make capital gains in the long-term and he was quite hopeful of its trading success in the stock market. It may be recalled that when National Savings Bond was offered to public for subscription at that time too, most of the veteran stock brokers had termed NBS a de-motivating product for the stock market because of its fixed return which set the investors participation in even form.

Soneri Bank eyes RBS Pakistan

KARACHI: Soneri Bank Limited (SBL) said Monday it is interested in buying the Royal Bank of Scotlands (RBS) Pakistan operations. MCB Bank had agreed last August to buy virtually all of RBS Pakistan shares for about $87 million, but the deal collapsed last month after MCB failed to get regulatory approval from the State Bank of Pakistan (SBP). "SBL will be seeking approval of the State Bank of Pakistan to proceed with the due diligence of RBS Pakistan," SBL said in a statement to the Karachi Stock Exchange (KSE). Soneri has a market value of around $72 million and, according to its website, operates 154 branches nationwide. Last week, Egypts No1 bank EFG-Hermes expressed interest in buying RBS Pakistan, and Faysal Bank last month also expressed interest. The planned Pakistan sale of RBS is part of moves by part-nationalised RBS to sell assets globally as it tries to exit some three dozen countries and focus on its mainly British core businesses. Before MCB Bank agreed the now-lapsed deal, Egypts Orascom Telecom Holdings and Rojhan Capital were also among those to express interest in acquiring RBS Pakistan.-Reuters

Greenback hits historic high vs rupee

Shiraz Ahmed KARACHI: Despite the efforts by State Bank of Pakistan (SBP), the value of local currency continued to shed value against greenback as it hit another historic peak in the kerb market Monday reaching Rs87 to dollar. Dealers said that the US currency is being traded at Rs86.80 on the buying side, while available at Rs87 for selling as persistent demand of dollar has further pushed its value up. They highlighted that the dollar demand in the interbank and kerb markets have further suppressed the value of local currency as the exporters are busy in hedging their positions against upcoming inflationary pressure. The dollar has appreciated by Rs2 in the open market within the last one month, raising eyebrows of different stakeholders especially the importers.

SA shows concerns over POL prices hike

KARACHI: Members of the Sindh Assembly have demanded the federal government to review the decision of price hike in petroleum products. Provincial Minister Makhdoom Jamil-uz-Zaman demanded that concerns of Sindh related to Chashma-Jhelum Link Canal should be settled. Minister for Inter Provincial Coordination, Makhdoom Jamil-uz-Zaman said during his speech that Sindh case on Chashma-Jhelum Link Canal would be raised on all forums including Council for Joint Interest. Provincial Minister Zahid Bahirgrahi informed the session that the return of Pakistani fishermen imprisoned in Indian jails is linked with improvement in Pak-India relations. He also said that the solution to Sir Creek issue could reduce the number of fishermen detained. Member of Sindh Assembly Nusrat Seher Abbasi said that the federal government should review decision about the raise in POL prices because these prices directly impact the common man. Assembly members acknowledged that the initiation of mega projects would help people find employment. MQM member Syed Sardar Ahmad said that the government is trying to put additional burden on common man to meet up with the targets set by the International Monetary Fund (IMF).

MEBL posts robust growth for CY09

KARACHI: Meezan Bank Limited (MEBL) announced Monday its financial result for the Calendar Year 2009 (CY09) posting a robust growth in all aspects of net inflows. Banks main revenue source, i.e. profit or return on financing, went up by 48.5 per cent to Rs10.102 billion as compared to Rs6.803 billion in CY08. Returns to depositors also went up significantly in tough competition for Islamic banks to attract money by offering higher rates. Other income portion doubled to Rs1.597 billion up from Rs708 million in CY08. Expenses portion too went up as banks opened new branches which heightened admin expenses thus overall expense tally surged to Rs3.471 billion from Rs2.713 billion in CY08. Net profit after tax stood at Rs1.025 billion (EPS: Rs1.71) as against Rs621 million (EPS: Rs1.22). The result shows it was a historic year for MEBL with excellent growth amid tough competition.

SECP registers 254 firms in Jan

ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) registered 254 companies during January, 2010, as compared to 189 and 237 companies registered during Nov, and Dec 2009, showing an increase of 34 per cent and 7 per cent respectively. The total corporate portfolio as on Jan 31, 2010 comprises of 54,657 registered companies. Total 254 companies incorporated during January, comprise of 5 public unlisted companies, 234 private companies, 12 single member companies and 3 associations not for prof it under section 42 of the Companies Ordinance, 1984. Total authorised capital and paid up capital of companies, incorporated during January amounted to Rs1,334.10 million and Rs393.90 million respectively. During January, number of new incorporation was highest at Lahore, whereby 100 companies have been registered, followed by Islamabad registering 69 companies, Karachi with 67 companies. Peshawar and Multan registered 6 companies each. Faisalabad and Quetta registered 4, and 2 companies respectively. Major share of new incorporation was witnessed in the trading sector comprising of 42 companies, followed by 33 in services, 16 in construction, 14 in information technology, 13 in Hajj and Umrah services, 12 in communications, 11 in textile sector, 10 each in broadcasting and telecasting, and power generation sector. During the month, the Commission granted licences to 2 associations not for profit under Section 42 of the Ordinance of which one is for environment protection, and other related to research on policy issues. Of these 254 companies registered during January, 22 companies have foreign investment. Foreign investors in these companies belong to diversified countries around the globe including Australia, US, UK, Sweden, UAE, Bahrain, Saudi Arabia, Turkey, Sri Lanka, Iran, China and Afghanistan. Foreign investment has been made in 4 companies in trading sector, 2 companies each in construction, information technology and services sector, and one company each in fuel and energy, telecasting, mining, food, agriculture, chemical, education, engineering, power generation, leather, pharmaceuticals and textile sector.-INP

APL profits likely to stay flat

Aqeel Abdul Razzak KARACHI: The after-tax earnings of Attock Petroleum limited (APL) - countrys 3rd largest Oil Marketing Company - are expected to post meagre growth of 0.9 per cent to Rs1.48 billion (EPS: Rs25.72) for 1HFY10 against Rs1.46 billion (EPS: Rs25.49) last year, as per "The Financial daily" Research analyst. Furthermore, we expect company to announce interim dividend of Rs10 per share. APL is scheduled to announce its results tomorrow while board will meet today at 1400 PST to talk about the companys performance for the first half ended December 31, 2009. Net sales of the company are likely to increase by 14.8 per cent to Rs37.95 billion from Rs33.05 billion mainly due to surge in volumetric sales of 15.45 per cent at 501k tonnes. Gross profit is expected to decline by 2.9 per cent to Rs1.57 billion comparing Rs1.62 billion while gross margin is expected to rise to 4.1 per cent from 4.9 per cent in 1HFY09. On the other hand, income on bank deposits and investments is likely to contribute to surge in bottom line, as it is expected to surge by 24.1 per cent. Similarly, operating expenses are expected to decrease by 2.9 per cent to Rs270.3 million for 1HFY10 as against Rs278.3 million recorded in identical period last year.