Fauji Fertilizer’s 2nd-qtr net rises on higher urea sales

KARACHI: Fauji Fertilizer Co., Pakistan’s biggest urea maker, said second-quarter profit rose 27 percent because of higher sales.

Net income rose to 2.37 billion rupees ($27.7 million), or 3.50 rupees a share, in the three months ended June 30, from 1.86 billion rupees, or 2.74 rupees a share, the Karachi-based company said in a statement to the stock exchange today. Sales rose to 10.4 billion rupees from 8.66 billion rupees.

Farmers are using more fertilizer to boost farm output, which accounts for a quarter of the South Asian nation’s gross domestic product, after wheat and sugar shortages in past two years caused nationwide riots.

Fauji, which has risen 9.4 percent this year, increased 0.3 percent to 112.60 rupees at 1:31 p.m. on the Karachi Stock Exchange. The company plans to pay a cash dividend of 3.50 rupees a share, according to the statement.

The company’s profit in the six months ended June 30 rose to 5.1 billion rupees or 7.52 rupees a share, from 4.55 billion rupees, or 6.70 rupees a share, according to the statement. Sales rose to 19.9 billion rupees, from 16.9 billion rupees. - Bloomberg

Karachi stocks ends lower; rupee weakens

KARACHI: Karachi stocks ended flat on Thursday in thin trading as investors awaited the announcement of the August and September monetary policy, due to be unveiled on Friday, dealers said.

The KSE's benchmark 100-share index fell 0.09 percent, or 9.01 points, to end at 10,427.28 points.

Volume was 63.35 million shares, compared with 93.86 million shares traded on Wednesday.

"Most investors are cautious right now ahead of the monetary policy," said Ahfaz Mustafa, managing director at Ismail Iqbal Securities Ltd.

A Reuters poll found 12 of 15 analysts expected the central bank to keep its policy rate unchanged at 12.5 percent when it sets monetary policy in a meeting on July 30. But further tightening could be coming when the central bank meets next in September.

However three analysts expected the central bank to raise its key policy rate by 50 basis points because of a widening fiscal deficit.

In the currency market, the rupee ended weaker at 85.63/68 to the dollar, compared with Wednesday's close of 85.55/62 amid higher demand for dollar for import payments.

The rupee fell to a record closing low of 85.75/80 this month amid high dollar demand from importers as well as debt repayments.

In the money market, overnight rates rose to 12.40 percent, compared with Wednesday's close of 11.50 percent. - Reuters

Nestle decides

to participate in port project

KARACHI: Nestle, the world's largest food company with highly successful operations in Pakistan, has decided to be present at Port Grand Project in a significant manner.

An announcement on Thursday said that Ian Donald, Managing Director of Nestle Pakistan, and Pierre Schaufelberger, Vice President Nestle S.A. International, visited the Port Grand Complex developed at the Karachi Port and expressed great appreciation for the world class project.

It said that the Nestle management was impressed with the scope and magnitude of the facility and has agreed to take a very prominent position in this beautiful enclave. The Nestle offerings will include a beverage and coffee Shop.

Port Grand Project will provide port-based food and fun, a feature customary of every major port city but so far unknown in Karachi.

Port Grand is expected to have a hundred different concepts which include everything from popcorn to exquisite dining, some of the outlets include famous international brands which too are present in the region but not yet introduced in Pakistan.

The project will significantly upgrade the cultural and social scene in the city besides enhancing eco-consciousness and harbour awareness in the citizens of Karachi, the statement added. - APP

Eurozone economic confidence highest in two years

BRUSSELS: Business and consumer confidence in the 16-nation eurozone jumped in July to its highest level in more than two years, driven by regional powerhouse Germany, the European Union said Thursday.

The Economic Sentiment Indicator produced by the European Commission rose to 101.3 points in the single currency area, an increase of 2.3 points from June and the highest level since March 2008 just as the global slump began to bite.

Sentiment also improved across the 27-nation European Union, rising by 1.9 points to 102.2 points.

"These results are strongly influenced by markedly positive readings in Germany," the commission said.

The majority of European states reported improvements, led by Germany with a 4.0-point spike in business and consumer confidence, followed by increases of 2.2 points in France and 1.9 points in Poland.

Sentiment was down in Spain as it dropped by 2.2 points in the last European country to emerge from recession.

The European Commission said sentiment in industry was the "main contributor to the overall improvement," with an increase of two points as respondents in the sector reported "substantial improvements in their order books."

Consumer confidence "regained momentum" with a 3.0-point upturn in the euro area.

"More optimism about the general economic situation and very significant easing unemployment fears in Germany contributed to the overall improvement," the commission said.

An analysis by Dutch banking group ING said: "July's sharper-than-expected increase in economic sentiment will further allay fears of a near-term double dip recession in the Eurozone and may give fresh support to the euro." - AFP

Sugar cane growers demand for payment procedure

KARACHI: Billion of rupees on account of outstanding dues have not been paid by sugar mills owners to the sugar cane growers despite the fact the latter are reaping hefty profit out of sale sugar products.

Pakistan sugar industry is the singular industry which does not invest a penny during the crushing season and heaps profit running into billion of rupees.

Sugar mills purchase sugar cane worth over 50 billion rupees from the growers during season under Procurement Receipt on loan for 15 days but no payment is made to the cultivators even after the expiry of season. Condition of additional payment stands applied in the event of non payment of cost of sugar cane supply on due time but the mill owners even don't make the original payment what to speak of additional payment.

Ibrahim Mughal, chairman Agri Forum Pakistan Ibrahim Mughal told trading corporation of Pakistan, sugar mills and other institutions were holding 900000 tones sugar reserves while the demand of domestic consumers stood at 150000 tones per month.

He demanded that the procedure for making payment to the sugar cane growers through cheques which was in place in India be also implemented in Pakistan as the sugar mills owners were not adhering to cane procurement receipt process. - Online