Monday 5 December 2016

SUNRISE CAPITAL (PVT) LTD | 6 December 2016 | TAKE OFF

Cement sales grow 11pc:
Cement sales rose 11 per cent year-on-year to 3.749 million tonnes in November thanks to a continued rise in local despatches. The figure suggests the cement industry achieved its highest-ever capacity utilisation of 98.6pc during the month.Domestic sales of cement jumped 15pc to 3.27m tonnes during the month, according to data released by the All Pakistan Cement Manufacturers Association (APCMA) on Monday. However, exports fell 10.4pc to 478,000 tonnes.During the first five months (July-November) of this fiscal year, the industry despatched 16.251m tonnes of cement, up 9.9pc from 14.788m tonnes a year earlier.Domestic sales increased 12pc to 13.709m tonnes while exports dropped 0.79pc to 2.542m tonnes during the July-November period.
Oil hits 16-month high at $55 a barrel:
Crude rose above $55 a barrel to hit a 16-month high on Monday as rising prospects of a tightening market after last week’s Opec landmark deal to cut production has given speculators impetus to increase bets on higher prices.Monday’s gains take the rally since the Organisation of the Petroleum Exporting Countries’ agreement was struck on Wednesday to 19 per cent for Brent and 16pc for US crude. Last week’s 12.2pc increase was the largest one-week rise since February 2011.“Opec sentiment continues to support oil markets. Speculative short positions are still at elevated levels and as more traders unwind these positions they could trigger more support for oil prices,” said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam.By 11:15 a.m. Eastern [1615 GMT], Brent crude rose 49 cents to $54.95 a barrel, a 0.9pc gain, after hitting $55.33, its highest since July 2015.
Shanghai Electric gets CCP's approval to acquire K-Electric:
Shanghai Electric Power Co Ltd said on Monday that it had received approval from the Competition Commission of Pakistan (CCP) to acquire K-Electric Limited.The Abraaj Group announced in October that one of its companies, KES Power, had reached an agreement to divest its stake in K-Electric, the country’s largest and only vertically integrated power utility, to Shanghai Electric.Abraaj owns 66.4 per cent of K-Electric’s total shares, along with management control. The deal, when closed, will be worth $1.77 billion.Shanghai Electric is a state-owned enterprise controlled by China’s State Power Investment Corporation, a Fortune 500 company.
Textile bodies put off black day protest plan:
Varying lobbying groups of the textile industry will hold a roundtable conference by the end of this week to deliberate on a single point – availability of electricity and gas to all provinces at regionally competitive prices without any disparity.All Pakistan Textile Mills Association (Aptma) Punjab Chapter Chairman Syed Ali Ahsan announced this on Monday.He also said textile bodies would delay their December 6 (Tuesday’s) black day plan following assurance from Punjab Chief Minister Shahbaz Sharif that he would take up industrial issues with the prime minister and get them resolved. A delegation of all textile associations will also call on Federal Minister of Petroleum and Natural Resources Shahid Khaqan Abbasi on Dec 6 to outline the challenges faced by the industry.
Pak-Italy JEC agrees on greater trade exchanges:
The second session of Pakistan-Italy Joint Economic Commission, held in Islamabad yesterday, discussed the current status of the economic situation, an overview of reforms, priorities, bilateral, institutional and trade relations.The Italian delegation was led by Mr Ivan Scalfarotto, Deputy Minister for Economic Development while Pakistan’s side was led by Rana Muhammad Afzal Khan, Parliamentary Secretary for Finance and Economic Affairs. Both the sides identified areas of cooperation and agreed on the need to have greater economic and commercial exchanges for mutual benefits of the two countries.The inaugural session of the JEC was held in Rome, Italy, on March 22-23, 2006. The two sides agreed to form four working groups: Energy and Infrastructure Development, Trade and Joint Venture, Agriculture and Agro Industries and Information Technology Collaboration. The second session of the JEC was held in Islamabad after the passage of a decade. Along with the Italian co-chair, 25 official delegates from different departments of Italy also participated in the JEC.
Diamer-Bhasha Dam: financing plan given approval:
Prime Minister Nawaz Sharif approved, in principle, the financing plan for construction of Diamer-Bhasha Dam from indigenous resources with directives to the ministry of finance for finalisation of funding modalities. The proposal of the ministry of water and power suggested that dam portion of the project must be financed on self-reliance basis through Public Sector Development Programme (PSDP) allocation as well as sources generated from Water and Power Development Authority (WAPDA).An official on condition of anonymity stated that there is a possibility of taking finances from a consortium of banks due to quantum of amount involved. He added the government would explore multiple sources of finance for the construction of the dam. It remains unclear whether or not Asian Development Bank (ADB), whose president during his recent visit to Pakistan had stated that his organisation was unable to finance the funding alone, would finance the project. However, details to this effect would be finalised by finance ministry as directed by the Prime Minister. The PSDP allocation would be made from the next fiscal year, he added.
PIA business segments: FAs preparing restructuring plan:
Financial Advisors are preparing a restructuring/implementation plan in consultation with the Pakistan International Airlines Corporation (PIAC), which would be presented to the Privatisation Commission (PC) Board and Cabinet Committee on Privatisation (CCOP) for requisite approvals next month. This was revealed by PIA officials while briefing the Senate Special Committee on the performance of PIA, which met with Mushahidullah Khan in chair here on Monday.The committee was informed that on September 29, 2016 a meeting was held among the Privatisation Commission, Aviation Division, PIACL, Civil Aviation Authority, Securities and Exchange Commission of Pakistan and Financial Advisors, wherein it was recommended that the PIACL should update the detailed assessment carried out on its various business segments with the assistance from the financial advisors. Further, the meeting underscored the need for formulating a detailed restructuring/implementation plan, focusing on the proposed segregation of core and non-core business segments of PIACL

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