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US gives Huawei 90 day reprieve on ban
Aug 20, 2019: The Trump administration gave Huawei Technologies a 90-day reprieve Monday from a ban on doing business with US companies, as high-stakes trade talks between Washington and Beijing struggle to show gains.
The US Commerce Department effectively suspended for a second time tough rules banning US companies from selling technology components and services to the Chinese telecommunications giant and a prohibition on buying equipment from it.
The move means Huawei can continue to buy US-made semiconductors and other materials crucial to its phones and network equipment, and that US telecommunications companies can continue to buy Huawei's networking equipment.
But it doesn't signal a change in US concerns that Huawei equipment poses a national security threat or lift a general prohibition on the use of its market-leading next-generation 5G systems in the United States.
The Commerce Department, meanwhile, added 46 more companies to its list of Huawei subsidiaries and affiliates that would be covered by the ban if it is implemented in full, taking the total on the list to more than 100.
"As we continue to urge consumers to transition away from Huawei's products, we recognize that more time is necessary to prevent any disruption," Commerce Secretary Wilbur Ross said in a statement.
- Markets surge -
The move, which was first reported in the media Sunday, gave a boost to markets from Asia to the Americas, which had been driven down by fears that the trade war between the world's economic superpowers is driving the global economy toward recession.
Both Shanghai and Hong Kong stocks soared more than two percent, and in early trade US shares were up more than one percent.
Also helping the market mood were comments from President Donald Trump's chief economic advisor Larry Kudlow, who said Sunday that the two sides were working to rekindle the trade negotiations.
Kudlow said that negotiators at a deputy level were to have teleconference discussions over the next week to 10 days.
If those "pan out," there can be "a substantial renewal of negotiations" at the level of principal negotiators, Kudlow told Fox News.
"The phone calls last week actually produced a lot more positive news than has been reported in the media," he said.
- National security 'threat' -
Huawei is the number two global smartphone vendor and is considered the world leader in fast fifth-generation or 5G equipment, but is hampered by lack of access to key hardware and software, including smartphone chips.
US intelligence has warned for several years that Huawei has close ties to the Chinese military and that its 5G equipment by design could provide Beijing's spies an electronic backdoor into the computer systems of any of its clients.
With Huawei's lower-priced, proven 5G technology already being installed around the world, Washington has pressed key allies to steer clear of it and forbidden its use by US telecoms companies and government entities.
"Technically, Huawei says they're privately-owned company, but under Chinese law even private companies are required to cooperate with the military and with the Chinese intelligence agencies and they're also required not to disclose that they are doing so," Ross told Fox News Network Monday.
Nevertheless Trump has partially linked Huawei's US business to gaining concessions in his broader trade showdown with China.
On May 15, he issued a national security order banning all business with the company, sending shockwaves through Huawei, because of its heavy dependence on US semiconductors, but also through Silicon Valley's chipmakers.
As China threatened to take a harder stance in trade talks, a 90-day reprieve eased the situation. The 90-day extension announced Monday gave companies on both sides more time to prepare.
Yet Trump remained ambiguous over whether Huawei was a trade or national security issue.
"Huawei is a company we may not do business with at all," he told reporters Sunday, before the reprieve was announced.
"At this moment it looks much more like we're not going to do business. I don't want to do business at all, because it is a national security threat."
AFP/APP
Gold sheds Rs 1,000, traded at Rs 88,000 per...
Aug 20, 2019: The price of 24 karat gold sinked by Rs 1,000 and was traded at Rs 88,000 per tola as compared with the last closing at Rs 89,000, Karachi Sarafa Association reported on Monday.
The price of 10 gram gold also witnessed decrease of Rs 865 and was traded at Rs 75,439 against Rs 76,303 of last day.
The price of silver remained constant and was traded at Rs 1,120 per tola and Rs 960.21 per 10 grams.
In international market the price of per ounce gold dipped by $ 16 and was traded at $ 1,498 as compared with the last closing at $ 1514.
APP
Earning Review: Cyan Limited disappoints!
August 19, 2019 (MLN): Cyan Limited held its Board Meeting on August 19, 2019, in which the board announced Losses of Rs. 55 million for the half year ended June 30, 2019, as compared to profits of Rs. 155 million recorded in the same period of last year.
According to the official document issued to the PSX, the company suffered heavily due to decline in gain on sale of investments by 97%.
The Company’s Loss per share stood at Rs. 0.95 for the said period, as opposed to EPS of Rs. 2.65 recorded in the same period last year.
Profit and loss account for the half year ended June 30, 2019 (Rupees'000) | |||
|---|---|---|---|
| June, 2019 | June, 2018 | % Change |
Return on investments | 51,099 | 50,888 | 0.41% |
Gain / (loss) on sale of investments - net | 6,438 | 252,340 | -97.45% |
Other income | 8,132 | 5,806 | 40.06% |
Unrealized diminution on re-measurement of investments classified as financial assets at fair value through profit or loss - net | -21,324 | -56,028 | -61.94% |
Unrealized gain on re-measurement of derivatives - net |
| 2,496 |
|
Operating and administrative expenses | -57,958 | -53,633 | 8.06% |
Financial charges | -3,618 | -5,489 | -34.09% |
(Loss) / profit for the period before taxation | -17,231 | 196,380 |
|
Taxation | -38,547 | -40,939 | -5.84% |
(Loss) / profit for the period after taxation | -55,778 | 155,441 |
|
Basic and diluted (loss) / earnings per share | -0.95 | 2.65 |
|
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Closing Bell: Bears take a breather, KSE 100 recovers...
August 19, 2019 (MLN): After feasting on negative sentiments on trading floor for the last 8 sessions, the bears handed over control to the bulls in today’s session as the KSE 100 index recovered 797 points of the 3,174 points lost in these 8 trading sessions.
This recovery pulled the index back above 29,000 points, letting it conclude the day at 29,562 points which is 2.77% higher than Friday’s close.
Today’s recovery is owed to a general expectation of improved trade numbers as the deficit is expected to decrease 29% in the first month of ongoing fiscal year.
Moreover, the sell-off led by mutual funds in the last 8 sessions took a breather today, which further relieved the index.
The benchmark index traded in a range of 935.28 points or 3.25 percent of previous close, showing an intraday high of 29,609.16 and a low of 28,673.88.
Of the 92 traded companies in the KSE100 Index 80 closed up 10 closed down, while 2 remained unchanged. Total volume traded for the index was 76.33 million shares.
Sectors propping up the index were Commercial Banks with 257 points, Oil & Gas Exploration Companies with 142 points, Fertilizer with 98 points, Cement with 63 points and Power Generation & Distribution with 60 points.
The most points added to the index was by HBL which contributed 84 points followed by OGDC with 73 points, MCB with 70 points, ENGRO with 59 points and PPL with 53 points.
Meanwhile, the KSE All Share Volume increased by 37.30 Million to 102.52 Million Shares. Market Cap increased by Rs.113.22 Billion.
Total companies traded were 354 compared to 310 from the previous session. Of the scrips traded 283 closed up, 51 closed down while 20 remained unchanged.
Total trades increased by 13,030 to 42,563 while the Value Traded increased by 0.52 Billion to Rs.3.94 Billion.
| Company | Volume |
|---|---|
| TRG Pakistan | 7,468,500 |
| Summit Bank | 6,043,000 |
| Maple Leaf Cement Factory | 5,934,000 |
| Hascol Petroleum | 5,884,000 |
| Unity Foods | 5,146,000 |
| International Steels | 4,142,000 |
| Engro Polymer & Chemicals | 3,039,000 |
| Sui Northern Gas Pipelines | 2,766,500 |
| Pakistan Petroleum | 2,599,300 |
| Pak Elektron | 2,495,000 |
| Sector | Volume |
|---|---|
| Commercial Banks | 15,200,500 |
| Cement | 13,642,200 |
| Oil & Gas Marketing Companies | 11,146,500 |
| Technology & Communication | 9,246,000 |
| Engineering | 8,671,000 |
| Chemical | 6,621,990 |
| Oil & Gas Exploration Companies | 5,282,680 |
| Vanaspati & Allied Industries | 5,148,000 |
| Fertilizer | 4,188,200 |
| Power Generation & Distribution | 4,045,500 |
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Sale of passenger cars falls by 42 percent in...
August 19, 2019 (MLN): As many as 10.9 thousand passenger cars were sold during the month of July 2019 against the production of 16.4 thousand units, a report issued by Pakistan Automotive Manufacturer’s Association (PAMA) revealed on Monday.
As a result, the sale of passenger cars plunged by nearly 42% as compared to the same period of last year.
Surprisingly, the maximum number of sales were made within the category of ‘below 1000cc’ engine at 5,310 units. Within this category, Suzuki Alto recorded the maximum sales at 4,584 units.
Nearly 2,051 units were sold within the ‘1300cc and above’ category, wherein Toyota Corolla made the highest sales at 1,981 units during the month. This was followed by Honda cars, which sold 1,452 units.
With respect to 1000cc category, Suzuki Cultus sold 1,208 units, whereas Suzuki WagonR sold 843 units.
Furthermore, 407 units of Trucks were sold during the stated month, which is 30.3% less than the sales of same period last year.
The number of total buses sold in July totaled 118 units, which is 7.2% less than the sales of same period last year.
Lastly, the total number of two wheelers and three wheelers sold in July amounted to 107,427 units, i.e. 28.7% lower than sales in same month of last year.
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