Islamic Finance

Technical Stock Snapshot The technical analysis showed that Halal Stocks KMI-30 share index would be bearish. Resistance around 21,291.70 resulted in a marginal break of 21,083.20 Support. Could adjust further to 20,999.65~20,874.70 area. We view last couple retreats as momentary reaction.

Gulf banks aim to boom on small and medium companies DUBAI:Banks in the Gulf Arab region are keen on increasing their return of equity until 2015 through developing products and services for the almost untapped market for small and medium enterprises (SMEs).

Technical Stock Snapshot The technical analysis showed that Halal Stocks KMI-30 share index would be bearish. Resistance around 21,374.79 resulted in a marginal break of 20,968.57 Support. Could adjust further to 20,782.16~20,562.35 area. We view last couple retreats as momentary reaction. The short-term and intermediate profiles would remain negative therefore stay short.

Dubai Islamic eyes bond sale for unit Tamweel DUBAI: Dubai Islamic Bank (DIB) and its unit Tamweel, plans to conduct fixed income roadshows in Asia, Europe and the United Arab Emirates and a potential bond issue guaranteed by the bank may follow, DIB said on Wednesday.

Meezan Bank hosts real estate consultant conferences KARACHI: Meezan Bank, Pakistan's largest Islamic Bank organized real estate consultant conference at Karachi. A statement on Monday said that the moot in the metropolis was for selected real estate Agents and Builders of the city.

Standard Chartered Saadiq and Tamkeen introduce financial scheme to help SMEs MANAMA: Standard Chartered Saadiq and Tamkeen have introduced an Enterprise Finance scheme for Standard Chartered customers in Bahrain's market. Through the Enterprise Finance scheme, Tamkeen will offer the bank a 50 percent guarantee for the total financing amount as well as subsidize 50 percent of the profit payments due from the benefiting enterprises.

HBL Islamic Banking Business net assets surged KARACHI: Habib Bank Limited (HBL) Islamic banking business and First Habib Bank Modaraba net assets increased by 37.35 percent during nine months of the calendar year 2011 (9MCY11). The net assets of the bank have reached Rs 1,251.246 million as on September 30, 2011 as against to Rs 910.970 million as on December 31, 2011.

Standard Chartered Saadiq and Tamkeen introduce financial scheme to help SMEs MANAMA: Standard Chartered Saadiq and Tamkeen have introduced an Enterprise Finance scheme for Standard Chartered customers in Bahrain's market. Through the Enterprise Finance scheme, Tamkeen will offer the bank a 50 percent guarantee for the total financing amount as well as subsidize 50 percent of the profit payments due from the benefiting enterprises.

Dull trade at Pakistan cotton market KARACHI: Dull trading session witnessed at Pakistan cotton market due to lack of positive triggers. The Karachi Cotton Association (KCA) official spot rate remained intact at Rs 5,200 per maund while physical prices of better grade lint fetched Rs 5,300 per maund.

By Riffat Mughal KARACHI: Standard Chartered Bank (SCB) Islamic banking business net assets surged by outstanding 63.16 percent during nine months of the calendar year 2011 (9MCY11). The net assets of the bank have reached Rs 2,800.690 million as on September 30, 2011 as against Rs 1,716.558 million as on December 31, 2011. Bank’s financing and receivables went up by 47.41 percent to Rs 13,766.007 million. In the total financing and receivables, Murabaha portfolio contributed Rs 3,300.083 million, showing an increase of 87.70 percent. Diminishing Musharaka portfolio surged by 35.87 percent to Rs 10,261.761 million during the 9MCY11. Out of total financing and receivables, Diminishing Musharaka portfolio constituted 74.54 percent and Murabaha contributed 23.97 percent. Diminishing Musharakah is a financing instrument used for long term financing. Increase in its share confirms that bank’s advances to deposit ratio would sustain the current levels achieved. More ex

Standard Chartered Islamic Banking Business net assets up by 63.16pct KARACHI: Standard Chartered Bank (SCB) Islamic banking business net assets surged by outstanding 63.16 percent during nine months of the calendar year 2011 (9MCY11). The net assets of the bank have reached Rs 2,800.690 million as on September 30, 2011 as against Rs 1,716.558 million as on December 31, 2011.

By Riffat Mughal KARACHI: Bank Alfalah Limited Pakistan (BAFL) Islamic banking business net assets surged by 22.23 percent during nine months of the calendar year 2011 (9MCY11). The net assets of the bank have reached Rs 5,888.209 million as on September 30, 2011 as against to Rs 4,817.195 million as on December 31, 2011. Bank’s advances declined during the period by 10.44 percent to Rs 23,247.294 million. Bank Alfalah Islamic banking business net investments increased by outstanding 44.97 percent to Rs 31,938.394 million and fixed assets climbed up by 2.38 percent to Rs 1,677.560 million during the period under review. Balances with and due from Financial Institutions (FIs) also went up by 19.87 percent to Rs 4,631.542 million. With the decline in demand for finance from sound and blue chip companies amid slow economic activity, the bank used the funds more towards investments. On liabilities side, total deposits and other accounts increased by 14.80 percen

Kerala-India wholeheartedly welcomes Islamic Funding agencies in Infrastructure projects KERALA: Kerala could become a role model of tapping Islamic finance market to raise badly needed funds for infrastructure development, according to experts. Mr H. Abdur Raqeeb, Convener, National Committee on Islamic Banking at the New Delhi-based Indian Centre for Islamic Finance (ICIF), made a strong pitch for these funds at the Infrastructure Conference-2011 that began here on Wednesday.

Pakistan can lead the way in Halal food market: Experts FAISALABAD: Pakistan can be a leading Halal food market by meeting international standards of Halal-HACCP (Hazard Analysis and Critical Control Points) because the sector has over two billion consumers across the world. This was stated by the speakers on the second day of the international conference titled ‘Emerging Issues in Food Safety’ arranged by the National Institute of Food Science and Technology at New Senate Hall, University of Agriculture, Faisalabad.

Islamic banking is not growing fast enough, says Noor CEO KUALA LUMPUR: Hussain Al Qemzi, Chief Executive Officer of Noor Islamic Bank urged, Islamic bankers to challenge regulators and create more innovative products and services. If Islamic banking is to develop into a global alternative to conventional banking, the global financial industry must take responsibility for driving the sector forward and not rely on the regulators to lead the way, according to Hussain Al Qemzi, CEO of Noor Islamic Bank.

Halal industry should work with Islamic finance KUALA LUMPUR: Despite the halal industry’s rapid growth, it is missing out on opportunities to tap into Islamic finance, panel members said. “There is a disconnect between the halal industry and Islamic financing, which is ironic since we’re working within the same religion, but are not talking to each other,” said Thomson Reuters head of Islamic finance (Asia) Rafiza Ghazali at a discussion on “Halal Economy” during the Islamic Financial Intelligence Summit.

Islamic finance may double in assets by 2016: Deutsche Bank DUBAI: The global debt crisis may help Islamic finance nearly double to $1.8 trillion in assets by 2016 as stagnant corporate lending pushes institutions to seek alternative financing to traditional methods, according to a report by Deutsche Bank.

Indonesia Sells $1bln Sukuk at Half 2009 Yield Level JAKARTA: Indonesia sold $1 billion of Islamic bonds at half the rate of its 2009 debut and more than two percentage points lower than a sale by Italy, supporting the Asian nation’s claim for an investment-grade rating.

Increase focus on financial stability is new Islamic financial landscape: Zeti KUALA LUMPUR: A central aspect of the new Islamic financial landscape is the increased focus on financial stability to further enhance its potential as a form of financial intermediation amid an increasingly challenging environment, according to Bank Negara Governor Tan Sri Dr. Zeti Akhtar Aziz.

Al Baraka income surge by 13pct to $166mln MANAMA: Al Baraka Banking Group net income surged by 13 percent during the first nine months of calendar year (9MCY211) to $166 million over the same period last year. Total operating income rose 15 percent to $535 million.

ADCB eyes benchmark Islamic bond ABU DHABI: Abu Dhabi Commercial Bank has picked four banks for a potential Islamic bond, or sukuk, which could be launched this week, making it the second lender from the emirate currently eyeing a chunk of Islamic liquidity amid dicey global markets.

Increase focus on financial stability is new Islamic financial landscape: Zeti KUALA LUMPUR: A central aspect of the new Islamic financial landscape is the increased focus on financial stability to further enhance its potential as a form of financial intermediation amid an increasingly challenging environment, according to Bank Negara Governor Tan Sri Dr. Zeti Akhtar Aziz.

Indonesia Sells $1bln Sukuk at Half 2009 Yield Level JAKARTA: Indonesia sold $1 billion of Islamic bonds at half the rate of its 2009 debut and more than two percentage points lower than a sale by Italy, supporting the Asian nation’s claim for an investment-grade rating.

Islamic finance may double in assets by 2016: Deutsche Bank DUBAI: The global debt crisis may help Islamic finance nearly double to $1.8 trillion in assets by 2016 as stagnant corporate lending pushes institutions to seek alternative financing to traditional methods, according to a report by Deutsche Bank.

AfDB Report On Islamic Finance In Tunisia TUNIS: The African Development Bank (AfDB) has recently drafted a report aiming at developing Islamic banking services in North Africa, analyzing the reasons for which they find it hard to develop, studying future perspectives and to what extent they would contribute to economic development. There is a considerable need in resources for the financing of projects in North Africa given the under-development of infrastructure in the region. To this day, 24 Islamic finance projects operations have been approved in North Africa, together totaling 2.4 billion dollars. Regarding Tunisia, national political factors have often hampered the development of Islamic banking services.

Bahrain to issue $1bln Islamic Sukuk MANAMA: Bahrain is still planning to sell Islamic bonds, Sheikh Salman bin Isa Al Khalifa, executive director of banking operations at Bahrain’s Central Bank, said today. “The issuance of the sukuk is still on track,” Sheikh Salman said in an e-mailed response to a question. He gave no further details.

Pakistan Cotton prices fall; volumes remain high KARACHI: Pakistan cotton prices declined on Tuesday amid improved trading volumes witnessed during the session. Mills and spinners were involved in excessive buying. The Karachi Cotton Association (KCA) official spot rate went down by Rs 200 to Rs 5,550 while fine lint traded at Rs 5,800 per maund, dealers said.

Cotton: CCAC & PCGA strife over output estimates ISLAMABAD: The Ministry of Textile Industry Tuesday categorically rejected the claim of some organizations regarding manipulation in cotton production estimates for the current fiscal year.

Financial results: UBL Ameen climbs on higher deposit base KARACHI: The net assets of UBL Ameen has increased by 2 percent during first nine months of the calendar year 2011. The net assets of the UBL Islamic window have crossed Rs 487.82 million during the nine months 9MCY11 as against Rs 477.29 million in the same period last year.

KMI likely to witness range bound session KARACHI: Corporate announcements would bring enough sensation to excite investors but today KMI 30 share index seems to show mix trend. Any good news can build up the market repo while any negative news can push market down.

By Riffat Mughal KARACHI: Wheat production in upcoming year is an opportunity for government to recover its losses, occurred due to damaged of crops in Kharif season. By increasing acreage for wheat production in the crop growing areas of Sindh and Punjab Pakistan can be able to produce wheat more than the target. Higher wheat production would not only allow fulfillment of domestic requirements but would allow Pakistan to export more and earn higher foreign exchange. Pakistan’s wheat production is expected to grow by 3.24 percent during the fiscal year 2011-12 (FY11-12). Government has set the target of 25 million tonnes in current FY11-12. Devastating floods and heavy rains in the Kharif season has destroyed production of crops including cotton, sugarcane, onion, tomatoes and others. Still water stands at the fields creating problems for the farmers, sowing for Rabi season. Rabi season has already started as the sowing of the crop in Pakistan started from b

Meezan profits jump over higher deposits KARACHI: The net profits of Meezan Bank jumped up significantly by 230 percent to Rs 909.48 million during outgoing quarter against Rs 275.84 million in same period last year.

BankIslami profits spike during 3QCY11-12 KARACHI: BankIslami Pakistan Limited (BIPL) witnessed outstanding performance during the third quarter of calendar year 2011-12 (3QCY11-12), said the result reported on Karachi Stock Exchange (KSE) website on Friday.

By Riffat Mughal KARACHI: Islamic Money Market Funds and Islamic Cash Funds performed lackluster in the month of September, 2011 as the net assets of the category decreased by 9.83 percent Month-on-Month (MoM) to Rs 6,892.176 million. The previous month, recorded a surge in net asset by 9.15 percent MoM to Rs 7,643.277 million. This particular category includes three Islamic Money Market and Islamic Cash Funds including Meezan Cash Fund, ABL Islamic Cash Fund and HBL Islamic Money Market Fund. The weighted average annualized return of all the three funds was 11.57 percent for September, 2011 which declined from 11.63 percent reported in August, 2011. Limited activity was seen in the sukuk market during the month. Due to the fact that market expected further cut in the rates, investors expected lower return on money market funds for the time being and some of them may have shifted to equity funds in search of higher returns on their investments. Meezan Cas

Positive investors’ sentiments likely to lift KMI 30 up KARACHI: Market is likely to continue positive momentum today on the news that petroleum ministry’s decided to take measures to settle the energy sector’s circular debt issue by taking all stakeholders on board.

Appetite for Islamic Finance growing ISTANBUL: Recent global crises have changed the sentiment for finance and investments with investors increasingly showing appetite for Shariah-compliant private equity (PE), according to a top official of Qatar First Investment Bank (QFIB)

Pakistan Cotton prices remain firm KARACHI: Pakistan cotton prices remained firm amid higher influx of seed cotton and phutti. Mills and spinners indulged in active trading as current prices meet their psychological level.

Agritech posts losses over higher expenses KARACHI: Agritech Limited (AGL) witnessed net losses of Rs 103.854 million during the first quarter of financial year 2011-12 (1QFY11-12).

Telecard, Bannu Woolen profits decline in 1QFY12 Telecard Ltd KARACHI: The net loss of the Telecard Limited (TELE) recorded at Rs 119.94 million during the first quarter of the financial year as compared to profit of Rs 251.74 million in same period last year. Bannu Woolen Mills The net profits of the Bannu Woolen Mills Ltd (BNWM) declined by 17 percent during the first quarter of the financial year and recorded at Rs 44.82 million as compared to Rs 54.17 million in same period last year.

Standard Chartered “Saadiq “enhanced KARACHI: Standard Chartered has enhanced its Islamic banking offer for customers, who want high quality Shariah-compliant banking products and services.

Another sturdy performance from Mari Gas KARACHI: Mari Gas Company Limited (MARI) posted another strong performance as its net profits during the first quarter of financial year 2011-2012 (1QFY11-12) grew by outstanding 113.21 percent year on year (YoY) to Rs 792.596 million.

OGDC reports net profits of 21,915.20mln in 1QFY12 KARACHI: The net profits of Oil & Gas Development Corporation (OGDC) surged by 31 percent and recorded at Rs 21,915.20 million for the first quarter of the financial year 1QFY12 as compared to Rs 16,709.87 million recorded in corresponding period last year.

Al-Baraka Bank pre-tax profits surge 9MCY11-12 KARACHI: Despite sluggish economic growth, AlBaraka Bank (Pakistan) Ltd has been able to show significant improvement in its financial results.

By Riffat Mughal KARACHI: Islamic Money Market Funds and Islamic Cash Funds showed slack performance during the month of September, 2011 as the net assets of the category decreased by 9.83 percent Month-on-Month (MoM) to Rs 6,892.176 million as at September 30, 2011. Despite the sluggish performance of the money market funds in general, HBL Islamic Money Market Fund (HBL-IMMF) net assets grew by 1.35 percent. HBL-IMMF net assets reached Rs 410.617 million during the month of September, 2011 as compared to Rs 405.161 million in the previous month. During the month, the fund has registered annualized return of 10.42 percent against the benchmark of 7.05 percent. Net Asset Value (NAV) as of September 30, 2011 was recorded at Rs 102.5724 as compared to Rs 101.7017 as of August 31, 2011. Since it is an income fund which regularly pays dividends, the stability and low movement in NAV is logical. Due to limited investment alternatives in Islamic money market fund, the