FINANCE

 

Aug 12 - 18, 2002

 

1.INTERNATIONAL

2. INDUSTRY

3. FINANCE

4. POLICY

5. TRADE

6. GULF

 
SBP TO PLACE $750M IN WORLD BONDS MARKET

The State Bank will place $750 million or 10 per cent of its $7 billion plus foreign exchange reserves initially only in US dollar-denominated fixed income government bonds as part of its reserve management.

 

SBP foreign exchange adviser Zafar M. Shaikh said this at a seminar held under the aegis of Pakistan Press Foundation.

He said the board of directors of the central bank has allowed the management to initially employ $750 million into fully secured bonds in the international market. But he would not say when exactly the State Bank would do it.

He said the central bank had been in talks with triple A rated international investment banks to outsource the job of foreign exchange reserve employment.

Zafar Shaikh said the mandate to be given to the selected bank would include cent per cent guarantee regarding accessibility to the capital meaning that the country would be free to encash the bonds prematurely if there arises a need.

He said Pakistan would also like to have repo facility against placement of funds up to 95 per cent. That means that if the country is in need of liquidity it can borrow in foreign currency against the bonds for a certain period.

Zafar Shaikh said the third key condition for outsourcing SBP reserves management is that the selected investment bank would have to make transfer of professional know-how. The selected bank would have to train SBP staff in reserve management techniques and technology.

MUTUAL FUNDS CAPITALIZATION TOUCHES RS26BN

The total market capitalization of the mutual funds sector shot up to Rs26 billion during the fiscal 2001-02, denoting an increase of Rs2 billion in a single year, the Securities and Exchange Commission of Pakistan stated on Wednesday.

Attributing the development to the initiatives taken by the Commission to enhance the depth and institutional investments in the country, the source said it was currently engaged in processing more applications seeking permission to float new mutual funds and asset management companies.

SBP MOPS UP RS27.909BN

The State Bank on Wednesday moped up Rs27,909.555 million of Rs28,800 million face value from the sale of Government of Pakistan Market Treasury Bills of six months maturity through primary dealers.

Bids for three months and 12 months have been rejected by the central bank, the SBP announced. The cut-off yield for six months maturity PMT bills has been accepted at 6.4373 per cent per annum while the weighted average yield will be 6.3985 per cent per annum.

SNGPL

The Oil and Gas Regulatory Authority (Ogra) has increased the prescribed price of gas supplied by Sui Northern Gas Pipelines Limited (SNGPL) by Rs7.13 per thousand cubic feet (MCF) or 6.5 per cent with effect from July 1, 2001.

PTCL EARNS

Pakistan Telecommunication Company Limited (PTCL) has successfully earned a net profit of over Rs19 billion in 2001-02 as against Rs18 billion of 2000-2001.

ICI POSTS RS. 227M PROFIT

ICI Pakistan posted after tax profit at Rs227 million for the six months ended June 30, 2002.

ORIX LEASING TFCS

The second tranche of Orix Leasing Pakistan Limited's Term Finance Certificates (TFC) issue has been oversubscribed, the registrars to the issue informed the stock exchange on Thursday.

Final figures forwarded by the bankers to the issue showed that at the end of closing of issue on July 31, a total of 137 application had been received, the subscription value of which stood at Rs146.8 million.

SSGCL

The Oil and Gas Regulatory Authority (Ogra) on Tuesday reduced the prescribed price of Sui Southern Gas Company Limited (SSGCL) by about 0.3 per cent or 32 paisa per thousand cubic feet (MCF) with retrospect from July 1, 2001.

MCB LAUNCHES TFC FOR RS1.6BN

Muslim Commercial Bank Limited is launching the first unsecured, subordinated Term Finance Certificate issue to date by a commercial bank for Rs1,600 million.

The advisory and arrangement for this transaction has been completed by a consortium comprising ABN AMRO N.V, Jahangir Siddiqui & Co Ltd, and Global Securities Pakistan Limited.

A presentation was given to the Karachi Stock Exchange on Monday which was positively received with demand to increase the public issue portion, said a news release of MCB.

DAWOOD COTTON MILLS

Dawood Cotton Mills Limited of Karachi, makes a case of considerable corporate interest. Its profitability as a giant composite textile unit has been vulnerable.

The company, nonetheless, has proved its acumen in making sound financial investment decisions, which is why in spite of operating losses, the company has managed to post bottomline strongly in the black all due to 'non-operating income' earned from investments. Few companies on the textile sector have disbursed as hefty dividends as Dawood: 65 per cent cash for 2000 and 35 per cent for 2001.

The recently released report and accounts for the three-quarters ended June 30, 2002 showed 'long-term investments' (at cost) at staggering Rs236 million the same as at that time last year. These investments constituted nearly 35 per cent of the company's total assets of Rs668 million and were worth Rs55 million more than the book value of company's fixed assets of Rs181 million.