MONDAY

January 27,2014 Karachi

1

SENTIENT
The Business& Finance News
BlackBerry still has a long way to go to convince people its phones are cool Pakistani Telecom Operator Warid outperforms 92% Brands Globally Google acquires Nest for $3.2 Billion: Is it one step closer to being 'Big Brother'?

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ORIGINATORS :AREEBA IMTIAZ,NAIMA NAVAID,AFSHEEN KHAN,SAIRA IQBAL,MEHWISHALMAS

PIA starts phone, SMS facility on Boeing 777

CURRENCY EXCHANGE RATE

Tuesday
1/21/2014

Exchange rates for currency notes (Rs) Saturday

1/25/2104

Wednesday
1/22/2014

Thursday
1/23/2014

Friday
1/24/2014

Sunday
1/26/2014

buying US Dollar Euro Japanese Yen Saudi Riyal UAE Dirham UK Pond Sterling

Selling

buying

selling

Buying

selling

buying

selling

buying

selling

buying

selling

106.30 144.40 1.0100 28.45 28.80 175.00

106.50 144.60 1.0300 28.65 29.00 175.25

106.30 144.50 1.0100 28.45 29.10 175.25

106.50 144.70 1.0200 28.65 29.30 175.50

106.30 144.70 1.0100 28.45 29.10 175.65

106.50 144.90 1.0200 28.65 29.30 175.90

106.30 144.75 1.0200 28.50 29.15 176.20

106.50 145.00 1.0300 28.70 29.35 176.40

106.20 145.75 1.0200 28.50 29.15 175.00

106.40 146.00 1.0300 28.70 29.35 175.25

106.20 145.75 1.0200

106.40 146.00 1.0300

28.45
29.15 177.0

28.65
29.35 177.2

CONTROVERSIAL ISSUE:
Are Bonds and Stocks lawful?
Stocks and bonds are financial instruments for investors to obtain a return and for companies to raise capital. Stocks offer an ownership stake in the company. Stocks of a company are offered at the time of an IPO (Initial Public Offering) or later equity sales. The company offers investors an ownership stake by selling stocks. Stocks can be either common stock or preferred stock. Stocks pay dividends to the owners, but only if the corporation declares a dividend. Dividends are a distribution of a corporation's profits. Stock price fluctuates depending upon the market values of the company. Stock With the equity offer comes with greater risk. Whereas, bonds are long-term debt offered with a fixed rate of interest in which the issuing corporation promises to pay the fixed amount at a specific date, bonds are "safer" than stocks because of lower volatility; keen consideration should be made on the point that there is always a chance that company will be unable to repay bond-holders. In that sense, bonds are not "risk-free". As we are a part of an Islamic republic state it is very necessary for us to understand the correct lawful concept by the teachings of Islam. Allah says: Those who devour interest will not stand except as stands one whom Satan has driven mad by his touch. [Srah al-Baqarah: 275]. There are conditions as trade is allowed and interest is forbidden. Shares are Halal because the share certificate actually signifies an ownership in a company for the share-holder. His ownership is in proportion of his investment in the company. This is the reason why if the company was to become bankrupt, the shareholder will not regain his investment in the state of cash, rather he will receive the companys assets according to his proportionate ownership. While the case of bonds is different as the rate of interest offered in bonds is fixed, no matter what the circumstances are it is mandatory for the company to repay only profits in terms of interest. And continued profits and no loss are prohibited by the teachings of Islam.

BULLION
DAY & DATE SUNDAY 1/26/2014 Gold 24k
10gm 44,314 715.71

silver

Pakistan has the potential to become 18th largest

economy of the world by 2050 leaving behind many strong economies, according to Jim ONeill, a British economist. _________________________________________________ For boosting the economy President of SAARC Chambers of Commerce and Industry, on Monday hailed the decision of Pakistan and India for 24hour flow of trade between the two countries. _________________________________________________ Banks disbursed Rs 159.3 billion during the first half of current fiscal year, which is 13.5 per cent higher than the disbursement of Rs 140.3 billion during the corresponding period last year _________________________________________________

Weekly review

FORMIDABLE CONCERN:
Pakistani Youth and Entrepreneurship
If an opportunity doesnt knock!!... Build a door. Entrepreneurship refers to the spirit of turning perceived risk into an asset. Entrepreneurship is considered as the backbone of any economy if we particularly talk about Pakistan we have scarcity of resources and ineffective managerial roles played by our politicians. If there will be small businesses in line more people will be involved which will refer to less unemployment and greater generation of revenue which will ultimately increase the bar of GDP. Junaid Jamshed a great example of entrepreneurship is also the most magnificent example of entrepreneurship in Pakistan who had a unique idea and he strived for it. We are having an emerging education trend and the greatest population of youth at present. This is the time to endeavor for a change. Instead of being a burden on Pakistans economy, students should strive for being good entrepreneurs. This will be fruitful cure to problems like unemployment and increasing national debt. Economy of Pakistan will leap towards boom if things will proceed in a progressive manner. Even Government of Pakistan is making efforts in encouraging the young entrepreneurs. Women should be an authentic element striving for revival of the economy. We are the nation that had the second female Prime Minister (Muhtarma Shaheed Benazir Bhutto) all over the world decades ago, then why cant Pakistani women be great entrepreneurs? Pakistan had always boosted the enthusiasm of women empowerment. Students should develop skills, should capitalize on their interest and unite to embrace for a better and competent Pakistan

Pakistans energy deficit will expand to 110.8 million

TOEs (Turn of Oil Equivalent) in the next 15 years as its demand is projected to grow to 147.78 million TOEs by 2027-28 against the domestic resources of 36.90 million TOEs in the same year, if the average GDP remains around 4.5pc. ______________________________________________ The Board of Directors of Engro Foods Limited has announced the financial results for the year ended December 31, 2013 which highlighted a loss of 206 pc. _________________________________________________ Telenor Group, the Norwegian telecom giant with global operations in 12 markets, recognizes its Pakistani subsidiary as a profit-making and sustainable company, according to the groups chief. _________________________________________________ Pakistan Steel seeks Rs1.5bn

KSE All Share Index out-pacing KSE-100 Weekly Review

e saw some interesting trends at the KSE this The Reasons and news that may be behind the week, with the KSE-100 rising by 0.3% WoW, closing moves of KSE are following: Investment in textile sector by foreign at 27,002 points, whereas the KSE All Share Index countries and efforts by Government of rose much faster at 1.5% WoW. Murree Brewery, Pakistan in energy sector which includes Century Paper, Nestle Pak, Pak. Int. Cont. and inauguration of Thar plant. Feroz1888 were the major gainers while Pace (Pak), Large-scale manufacturing expands by 5.23% Pakistan Tobacco, National Foods, Javedan Corp and Current Account balance posts US$285mn Lucky Cement were the major losers in the surplus in December. benchmark KSE-100 this week. 8% increase in textile exports. Govts heavy borrowing signals strategy change . Forex reserves fall by US$149mn. Expected strikes and disturbed law and order situations. Weekly inflation for combined income group witnessed a decline of 0.17 per cent for the week ending on January 23 as compared to the previous week. The article abridge that the weekly inflation measured through the sensitive price index (SPI) declined for the past nine consecutive weeks, suggested data issued by Pakistan Bureau of Statistics on Friday. SPI monitors prices of 53 items based on the survey of 17 cities and 53 markets. The decline is mainly fuelled by deceleration in price of perishable products like potatoes, onions and tomatoes etc. pulses, meat, powdered milk are the products that attained increase in prices whereas tomatoes, onions, egg, bananas, LPG, red chilies powder loose, wheat flour and vegetable ghee loose registered decline in the week.

News This Week Large-scale manufacturing expands by 5.23% Current Account balance posts US$285mn surplus in December Govts heavy borrowing signals strategy change Forex reserves fall by US$149mn

Meezan Bank has won the award of Best Islamic Bank in Pakistan for 2013 from Islamic Finance News of RED money Group, Malaysia. This is the eighth time the bank has received this award. The article highlights great success of Meezan Bank for showing extraordinary services in Islamic Banking. The rewards also includes Pakistan Deal of the Year award for providing advisory services to the Government of Pakistan to enable it to raise funds in a Shariah-compliant manner. It also received Ijarah Deal of the Year award for Siemens Pakistan Engineering Companys Rs200 million off-balance-sheet lease facility.

_____________ Strike, sit-ins cause Rs12bn trade loss in Karachi ____________

EFFECTIVE TIPS TO INVESTING OF FINANCE 1. 2. 3. 4. 5. 6. 7. Self-control. Be Aware of goals. Points to consider for investment. Controlling personal finances. Controlling finance. Emergency fund. Protecting wealth.

Shell Pakistan has signed a contract with Daewoo Express for lubricant supply to the Daewoo fleet in the country, also pledging a partnership for social investment and safety programmed. This article encapsulate the news of great partnership held between Shell Pakistan, an oil company, which has a 15% share in the white oil market in Pakistan, has entered into an agreement with a passenger transport company that connects 46 cities via their network and fleet of 225 buses. The Partnership involves elements which include CSR and employees compensation plan which will include free education provided to the children of the bus service employees. Hope the partnership will results in best interests of Pakistan.

N.B. There are no spaces between words. Across

1. rate and efficiency of work 4. ask the bank to advance money 6. money paid for a loan 10. wealth of person or business 12. promise to repair or replace 13. amalgamation of two companies 14. legal agreement 16. total sales of a company 17. share of profits paid to shareholders

Down
2. proof of payment 3. put money into a company or business 5. money paid to owner of copyright or patent 7. part of the capital of a company 8. where shares are bought and sold 9. money lent 11. amount of money spent 14. neither cheques nor credit card 15. money returned