Performance report: Mari Petroleum and PSO outperform KSE-100 index

Beating others: 129% is the return given by Mari Petroleum. PHOTO: FILE

KARACHI: 

Mari Petroleum and Pakistan State Oil (PSO) have so far outperformed the benchmark Karachi Stock Exchange 100-Share Index and have also led the overall oil and gas sector, which falls slightly short of the returns posted by the benchmark index, according to a report prepared by Topline Securities on Thursday.

Oil and gas is the largest listed sector on the Karachi Stock Exchange with a weight of 29%. It posted an annual return of 47% at the close of market on Thursday, falling slightly short of the 50% return given by the benchmark index in the same period, according to the report.

The sector gained on the back of above-average foreign inflows, clearance of circular debt, smooth government change and the new government’s efforts to promote investment in the energy sector.

The report stated that among 12 listed oil and gas companies, Mari Petroleum and PSO outperformed the broader index by 79% and 24%, respectively. Byco Petroleum, on the other hand, posted a negative return of 40% and remained the worst performing stock.

Within the oil and gas subsectors, energy and power performed almost in line with the benchmark index, refineries lagged behind while oil marketing companies outperformed the index.

Within the energy and power subsector, Mari Petroleum, Pakistan Oilfields (POL), Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company (OGDC) provided an overall return of 49% in 2013, which is almost in line with the benchmark index’s return.

Mari outshined in this sector with 129% total return amid volumetric growth mainly from the Mari gas field.

PPL and OGDC that cumulatively comprise 20% of the KSE-100 index posted returns of 53% and 49%, respectively. PPL’s performance was fuelled by three discoveries in 2013 while OGDC gained on the back of volumetric growth mainly from Nashpa field.

Contrary to energy and power, the oil marketing sector – three listed companies – posted a return of 52% supported by 74% return from PSO. Other two players, Shell and Attock Petroleum Limited posted returns of 40% and 28% respectively.

PSO benefited the most from the resolution of circular debt issue, resulting in improved operational leverage and cash flow. The company’s share in the benchmark index increased from 2.4% to 2.9% in 2013.

The refinery sector, which comprises four listed companies, underperformed the broader index by 51% primarily on account of volatile gross refinery margins and heightened risk environment surrounding the sector.

The report pointed out that with 26% return, Attock Refinery was the biggest gainer among refineries. Being the third largest refinery in terms of market capitalisation, Byco held back the refinery sector performance as other peers offered 15% return on average.

Profit abroad: China a paradise for budding entrepreneurs

Spreading footprints: 25 is the number of countries in which Adil Husain’s group has opened offices with head office in Shanghai. PHOTO: INSTAGRAM/THE SECOND FLOOR

KARACHI: As an aspiring entrepreneur China is the dream country to start a business. Adil Husain, a Pakistani entrepreneur who started his business in China seven years ago, advises budding Pakistani entrepreneurs to enter the Chinese market instead of any other country.

“China has unlimited business opportunities mainly owing to its big population. The country is not only safe and secure for business and investment but also for living and raising your family,” said Husain while delivering a lecture at The Second Floor (T2F) Karachi.

After completing his higher education from a university in the United States, Husain chose China to start his business. “For me, China was an economy that was growing at a fast pace and it was a place where the world’s leading companies were trying to move,” he said.

Husain sold his car to finance his trip and went to China, learned Mandarin with his wife and launched business with whatever money he had in his hand. His wife got a job and he focused on his business.

“Today, the kitchen of my headquarters in Shanghai is bigger than my early offices when I started my business in China,” he said.

With the head office in Shanghai, the group today has offices in 25 countries all around the globe.

He advised young entrepreneurs in Pakistan to start their new business from China due to its fast growing economy. “Choose China to start your first business because this will continue to grow at a fast pace owing to its growing middle and upper middle class,” said Husain.

Pointing towards the importance of better relationships with neighbours, Husain said successive Chinese governments have developed good relations with its neighbours despite the difficulties it faced in the past.

Citing the example of Taiwan and Japan, he said China has always looked ahead while developing economic relations with its neighbouring countries despite political tensions and historic rivalries.

Husain is the president and founder of the Emerging Asia Group which provides primary research-based business-to-business (B2B) market intelligence in Asia. The company provides product information and consulting services that address the needs of clients which include strategy-consulting firms, business research firms, cross-border investors and Fortune 500 companies from all sectors.

New trend: Islamic banking gaining ground globally

Khan said the Islamic banking system was getting popular in European countries. ILLUSTRATION: JAMAL KHURSHID

FAISALABAD: 

University of Agriculture Faisalabad (UAF) Vice Chancellor Dr Iqrar Ahmad Khan has said Islamic banking is gaining popularity across the globe as the volume of Islamic banking has touched $1.4 trillion.

He was speaking at an international symposium on Islamic banking in emerging economies arranged by the Institute of Business Management Sciences, University of Agriculture Faisalabad in collaboration with Meezan Bank and Dubai Islamic Bank.

Khan said the Islamic banking system was getting popular in European countries, stressing “Islam is a religion of peace and provides solutions to all problems facing the globe.”

He underscored the need of polishing the entrepreneurship skills of students as part of efforts to fight unemployment.

Speaking on the occasion, Faisalabad Chamber of Commerce and Industry President Suhail Bin Rashid said Faisalabad was the “second largest economic hub” of the country and it was necessary to increase awareness of Islamic banking.

Illegal trade: Smuggled goods worth Rs15.7b seized in three years

The Customs department has reinvigorated its enforcement measures which include intelligence sharing with other agencies. PHOTO: PPI/FILE

ISLAMABAD: Customs authorities, as part of their anti-smuggling drive, have seized goods worth Rs15.736 billion in the last three fiscal years.

During fiscal year 2010-11, the authorities seized goods worth Rs5.502 billion, in 2011-12 they confiscated goods worth Rs4.905 billion and in 2012-13 goods valuing Rs5.329 billion were taken into custody.

According to officials, the main source of smuggling goods into Pakistan is the long porous border with Afghanistan. However, there is no mechanism to gauge the real quantum of smuggling. In its absence, the loss to the national economy cannot be determined with certainty.

In an effort to curb the smuggling, the customs department has reinvigorated its enforcement measures which include intelligence sharing, launching joint operations and support and facilitation from law enforcement agencies (LEAs) to the customs authorities.

Highlighting the significance of these steps, the officials said the Frontier Constabulary Balochistan and Khyber-Pakhtunkhwa had been entrusted with the task to take anti-smuggling measures within 20 km of the international border. Joint efforts are also being undertaken by the customs department and other law enforcement agencies.

Additional steps taken by the authorities include constant vigilance at major entry points or smuggling routes by the customs department with the assistance of LEAs.

Anti-smuggling powers are being given to the Pakistan Coastguards and the Pakistan Maritime Security Agency to curb illegal flow of goods in the coastal areas and high seas. Scanners have also been installed at airports for scanning of the baggage of incoming passengers.

Cash strapped: CDWP approves 8 new projects worth Rs4.7b

Federal Minister for Planning Development and Reform Ahsan Iqbal (C) chairs the CDWP meeting in Islamabad on Thursday. PHOTO: PID

ISLAMABAD: Despite facing an acute shortage of funds, the government on Thursday approved eight new projects worth Rs4.7 billion, while four projects worth Rs32.9 billion were referred to the Executive Committee of National Economic Council (ECNEC) for approval.

“Pakistan is currently in acute economic crisis. It is facing problems in energy, security and social sectors. Therefore, we must spend our resources on very important and high-priority projects by avoiding their wasteful expenditure,” the federal minister for Planning, Development and Reform Ahsan Iqbal remarked as he chaired a meeting of the Central Development Working Party (CDWP) meeting in Islamabad on Thursday.

The meeting had met to consider approvals for 14 development projects from Physical Planning & Housing, Health, Transport & Communications, Water Resources, Education, Energy, Governance, Culture Sports & Tourism, Information Technology and Higher Education sectors.

The approved projects include a health insurance (Social Health Protection) scheme for the poor in Gilgit worth Rs173 million. An integration of health services delivery with special focus on maternal newborn and child health (MNCH), lady health workers (LHW) and nutrition programme for Khyber-Pakhtunkhwa province worth Rs22.8 billion.  An improvement and reconditioning of a 52km stretch of the Noseri Leswa by-pass road in district Muzaffarabad-Neelum (AJ&K) worth Rs965 million; metalling and blacktopping of 40km stretch of the Authmuqam Karen by-pass road in Muzaffarabad-Neelum (AJ&K) worth Rs842 million. The construction of a flyover at Koyla Phatak in Quetta worth Rs1.4 billion was also approved.

CDWP also approved the Balochistan Small Scale Irrigation (BSSIP) Project worth Rs2.2 billion along with a project for the establishment and operation of basic education community schools across Pakistan (2012-16), worth Rs6.2 Billion.

Concept approval was also given to the Technology Park Development Project in Islamabad worth Rs5.4 billion.

CDWP also approved the Culture, Sports and Tourism Joint Institution Cooperation project between Pakistan and Norway worth Rs162 million.

The meeting also approved Rs644 million for establishing a campus of the Federal Urdu University of Arts, Science and Technology in Islamabad.

Approval for the Rs793 million reforms and innovation in government project was also granted. Under the programme reform agenda of the government would be pursued through the innovation and reform group over the next five years. An innovation fund will be established for this purpose with Rs250 million to encourage innovative projects.

“Government machinery is not capable to tackle new challenges of the global era. We need government machinery in line with the new management principles to facilitate and serve our people efficiently, which is not possible without reforms in the governance model,” Iqbal remarked.

Not all projects presented were approved. Iqbal was incensed at CDA authorities for presenting an odd architectural design for the extension of parliament house building, and directed them to redraw the plans in harmony with the existing structure of parliament building.

Chris Hemsworth wants to slow acting career

Chris Hemsworth wants to 'slow down' his acting career.
The 30-year-old actor - who has starred in some of 2013's biggest hit films 'Thor: The Dark World', 'Star Trek Into Darkness' and 'Rush' - wants to take a step back so he can enjoy time with his wife Elsa Pataky and their 19-month-old daughter India Rose. 
He said: 'I've been working solidly for a couple of years now, to the point where I have to slow down and spend some time with my family.'
Hemsworth wants a break but is concerned about 'saying no' after having spent so long trying to build a successful career in the entertainment industry. 
He said: 'You spend so long having your hand up, saying 'C'mon, c'mon - pick me!' there is a fear of saying no to things. It's bred into you. I get s**t sent to me and I think, ' I should probably just take this.'
'But now I try to say, 'Hold on - do you even like it? ' I do have a little control now. That's the transition - I'm not at the mercy of someone else so much. That's just as scary as it is liberating.'

Schalke’s Kevin-Prince Boateng attacked on street in Kaarst, police investigating

The local police force for Neuss, near Düsseldorf, confirmed to the local Rheinische Post newspaper on Thursday that it was Schalke's Kevin-Prince Boateng who was the victim of a Christmas Day assault in Kaarst. The incident was first announced in a police press release which named neither victim nor suspect.

'On Wednesday, 25.12.2013, at around 12:45, an incident of physical assault took place in Kaarst. A 26-year-old man, a resident of Meerbusch, was physically attacked on the street by a currently unidentified man,' the police statement said.

After the attack in Kaarst, the police said that Schalke's 26-year-old midfielder returned home before calling them.

'There are indications that the motive for the crime is connected to the personal affairs of the 26-year-old,' the police statement said. 'The man was mildly injured. Criminal investigators have begun their work.'

German mass-circulation paper Bild later reported on its website that Boateng was leaving the house of his ex-wife after visiting his young son at Christmas. According to Bild, Boateng was struck once by the assailant and fell onto a vase as a result. He later checked into a local hospital with bruising to his ribs, back and neck.

The police appealed for anyone who might have witnessed the apparent assault on Kaarst's 'Lange Hecke' street to make contact.

The Schalke player on Thursday issued only one post on his official Twitter account, a photo of a wristwatch with a short caption: 'It's TIME.'

Boateng, a Ghanaian international who grew up in Germany, joined Schalke late in the previous transfer window from AC Milan. He had previously played for rival club Borussia Dortmund. His half-brother Jerome Boateng plays for Bayern Munich and Germany. Ghana and Germany will meet in the group stages of the 2014 World Cup.