The Financial Daily-Epaper-07-02-2011 by The Financial Daily

International Karachi, Monday, February 7, 2011, Rabi-ul-Awwal 3, Price Rs12 Pages 12

Cabinet resizing under review, says PM Economic Indicators Forex Reserves (29-Jan-11) Inflation CPI% (Jul 10-Dec 10) Exports (Jul 10-Dec 10) Imports (Jul 10-Dec 10) Trade Balance (Jul 10-Dec 10) Current A/C (Jul 10- Dec 10) Remittances (Jul 10 - Dec 10) Foreign Invest (Jul 10-Dec 10) Revenue (Jul 10 Dec 10) Foreign Debt (Sep 10) Domestic Debt (Dec 10) Repatriated Profit (Jul- Dec 10) LSM Growth (Nov 10)

GDP Growth FY10E Per Capita Income FY10 Population SCRA(U.S $ in million)

199.80 -0.95 2.22 3091

Total Portfolio Invest (28 Jan-2011)

(U.S $ in million)

FIPI (4-Feb-2011) Local Companies (4-Feb-2011) Banks / DFI (4-Feb-2011) Mutual Funds (4-Feb-2011) NBFC (4-Feb-2011) Local Investors (4-Feb-2011) Other Organization (4-Feb-2011)

0.11 -1.55 0.84 -0.37 -0.60 1.18 0.40

Global Indices Index

Change

KSE 100

12,415.35

56.29

Nikkei 225

10,543.52

112.16

Hang Seng

23,908.96

426.01

Sensex 30

18,008.15

441.16

SSE COMP.

2,798.96

8.27

FTSE 100

5,997.38

14.04

Dow Jones

12,092.15

29.89

GDR update Symbols MCB (1 GDR= 2 Shares) OGDC (1 GDR= 10 Shares) UBL (1 GDR= 4 Shares) LUCK (1 GDR= 4 Shares) HUBC (1 GDR= 25 Shares)

$.Price PKR/Shares 2.60 111.04 18.08 154.43 2.00 42.71 1.70 36.30 11.62 39.68

Money Market Update T-Bills (3 Mths) T-Bills (6 Mths) T-Bills (12 Mths) Discount Rate Kibor (1 Mth) Kibor (3 Mths) Kibor (6 Mths) Kibor ( 9 Mths) Kibor (1Yr) P.I.B ( 3 Yrs) P.I.B (5 Yrs) P.I.B (10 Yrs) P.I.B (15 Yrs) P.I.B (20 Yrs) P.I.B (30 Yrs)

26-Jan-2011 26-Jan-2011 26-Jan-2011 29-Nov-2010 04-Feb-2011 04-Feb-2011 04-Feb-2011 04-Feb-2011 04-Feb-2011 04-Feb-2011 04-Feb-2011 04-Feb-2011 04-Feb-2011 04-Feb-2011 04-Feb-2011

13.67% 13.71% 13.88% 14.00% 13.21% 13.61% 13.76% 14.13% 14.27% 14.22% 14.25% 14.27% 14.59% 14.78% 14.96%

Commodities Crude Oil (brent)$/bbl 99.83 Crude Oil (WTI)$/bbl 89.03 Cotton $/lb 167.86 Gold $/ozs 1,349.00 Silver $/ozs 29.06 Malaysian Palm $ 1,247 GOLD (NCEL) PKR 37,321 KHI Cotton 40Kg PKR 12,325

Open Mkt Currency Rates Symbols

Buy (Rs)

Australian $ 86.70 Canadian $ 85.80 Danish Krone 14.00 Euro 116.30 Hong Kong $ 10.90 Japanese Yen 1.034 Saudi Riyal 22.73 Singapore $ 66.60 Swedish Korona 12.00 Swiss Franc 85.60 U.A.E Dirham 23.23 UK Pound 137.30 US $ 85.65

Sell (Rs)

87.60 86.80 14.70 117.80 11.00 1.060 22.95 67.60 12.10 86.20 23.48 138.80 86.00

Inter-Bank Currency Rates Symbols

Australian $ Canadian $ Danish Krone Euro Hong Kong $ Japanese Yen Saudi Riyal Singapore $ Swedish Korona Swiss Franc U.A.E Dirham UK Pound US $

Buying TT Clean

Selling TT & OD

86.97 86.20 15.62 116.45 10.97 1.047 22.77 67.04 13.19 90.22 23.48 137.78 85.42

87.17 86.40 15.66 116.72 10.99 1.050 22.82 67.20 13.22 90.43 23.53 138.11 85.60

Weather Forecast CITIES

ISLAMABAD KARACHI LAHORE FAISALABAD QUETTA RAWALPINDI

MAX-TEMP

22°C 28°C 23°C 23°C 13°C 22°C

MIN

10°C 12°C 9°C 10°C 5°C 11°C

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See on Page 2

Pir Mazhar hints for rightsizing of Sindh Cabinet

See on Page 12

Chief Justice ties progress to rule of law

Portfolio Investment

NCCPL

See on Page 9

PIA says planes flying as per schedule

Justice Iftikhar addresses 17th Commonwealth Law Conference

$17.38bn 14.61% $10.98bn $19.13bn $(8.15)bn $26mn $5.29bn $1.05bn Rs 638bn $58.41bn Rs 5497.4bn $323.6mn -4.69% 4.10% $1,051 175.09mn

Yearly(Jul, 2010 up to 3-Feb-2011) Monthly(Feb, 2010 up to-3-Feb-2011) Daily (3-Feb-2011)

Trio banned on solid evidence: Lorgat

HYDERABAD: Chief Justice of Pakistan Iftikhar Muhammad Chaudhry addressing at the inauguration of the 17th Commonwealth law conference.-APP

38th session of Saarc Standing Committee

Pak pushes for Saarc coactions THIMPU: The 38th session of Saarc Standing Committee commenced on Sunday at Thimpu, Bhutan. Foreign Secretary Salman Bashir led the Pakistan delegation to the meeting. Foreign Secretary Salman Bashir affirmed Pakistan's support for comprehensive regional cooperation under the Saarc framework. Foreign Secretary said that among the priority areas, Saarc should focus on issues related to environment and climate change, energy and food security, alleviation of poverty; promote project based cooperation; develop substantive cooperation with Observers including other regional organizations and extra - regional states that have

showed keen interest in Saarc. Pakistan fully supported transregional economic, energy and development cooperation. Pakistan was happy to note that under the Chairmanship of Bhutan and Secretary General Sheel Kant Shama, we had seen steady progress in various SAARC Programmes and activities. Terrorism and illegal trafficking of drugs posed significant challenges to SAARC member states. Pakistan had hosted an important Ministerial Meeting of SAARC Interior/Home Ministers, which had adopted the Islamabad statement calling for closer cooperation among SAARC states to overcome these challenges. See # 5 Page 11

Court gets BB Blackberry record today KARACHI/ ISLAMABAD: The forensic report of the Blackberry phones of Benazir Bhutto, which have been recovered from Bilawal House the other day, has been completed and report comprised of phone calls and messages' record would be presented before the court here on Monday (today). According to the sources in Federal Investigation Agency (FIA) an employee of Bilawal House namely of Abdul Razzaq has handed over the Blackberry phones of Benazir Bhutto to FIA Anti-Terrorism Sindh, which were sent to Forensic Laboratory Islamabad. After the 48-hours lab-test, the calls and messages' record made by Motharma has been recovered. See # 4 Page 11

HYDERABAD DECCAN: Chief Justice of Pakistan Iftikhar Muhammad Chaudhry has stated that the Rule of Law bore a substantial impact on the economic development across the globe, while a strong constitutional and legal framework is all the more necessary to establish rule of law. Addressing the inaugural address with his keynote speech to the august gathering at the occasion of 17th Commonwealth Law Conference, he stressed that, "Government of law and not of men", is what is meant by phrase Rule of Law as laid down in an old document i.e. the constitution of Massachusetts. He stressed that "the Constitution of a State being the supreme law keeps every organ of the State autonomous and independent, yet subject to certain limitations and restrictions, but at the same time, ensures supremacy of the law, which is essential for economic development of a country." He expressed his extreme hopes that in the present Conference, the participation of judiciary and legal fraternity,

will serve like a beacon for those who stand for human rights and rule of law in society, including the investors, financers and traders, who play a vital role in the economic development of a country. "Constitutionalism and rule of law, blended with an independent judiciary, ensure amicable solution of their problems in accordance with law. The constitutionalism and rule of law guarantees enforcement of human rights and thus help flourish industrial and commercial activities", he added. He highlighted the Rule of law and equality before law as being the hallmark of Islamic thought and philosophy, which derives its authority from the Holy Quran and traditions of the Prophet. The CJP cited, the early Islamic period of the pious caliphs contain example of the political sovereign appearing before judicial authorities and the Qazi, making no distinction between the ruler and the ruled while dispersing justice. He also cited the Universal Declaration of Human Rights 1948, aimed at protecting these rights and setting out guidelines

for the Member States to formulate policies and prescribed standards for securing these rights. He informed that Constitution of Pakistan, in its very preamble, obligates the State to ensure that the independence of the judiciary is fully secured. Furthermore, Article 175 mandates that the judiciary shall be separated from the executive. In line with the constitutional provisions, the Supreme Court has, over the years, strived to make the judiciary truly independent, impartial and autonomous, so as to withstand undue influence, pressure or inducement from the executive and dispense justice, fairly to all manner of people, according to law, without fear or favor, affection or illwill. He concluded his speech with the observation that it was in the interest of every country, region and indeed the whole world both developing and the developed, to uphold the principle of rule of law, transparency and accountability not only in the affairs related to the domestic administration but in the International arena as well. See # 3 Page 11

During Last Week

Foreigners pour $6.05mn into KSE Ghulam Raza Rajani KARACHI: Even though global market remained depressed but offshore investors once again emerged as the net-buyer in Pakistan equity market with $6.05 million worth of buying during last week as per National Clearing Company of Pakistan Limited (NCCPL) data. During the week, KSE ended lower as investors preferred to offload their positions due to weak global markets and uncertainty on deemed duty of refineries, however some positive activities witnessed towards the end of the week on hopes regarding early launch of leverage product. The benchmark KSE 100Index fell 47 points to close at

12,415 points, while it touched a highest and a lowest level of 12,613 and 12,172 points respectively. Foreign investors deciding for buying fresh position as they bought shares worth $18.63 million and sold $12.58 million, resulting in net buying of $6.05 million during the last week. Furthermore, other organization and local individuals remained on the buying side with shares worth $6.37 million and $3.39 million respectively. On the other hand, biggest weekly selling were witnessed from local companies which sold $162.40 million of shares in the local bourse against the buying of $150.87 million, thus turning the net selling worth of $11.52 million. See # 1 Page 11

Says no SRO issued yet

Custums halts imported-cars KARACHI: Despite government approval to import used cars last week, the Customs authorities has not started to clear the imported autos, which is causing million of rupees loss to the imported under demurrage charges on the autos being held up at the Port. It is relevant to mention here that government had allowed importing used-cars to break up the local auto-industry cartelization, which despite government's warning continued to raise the auto prices during the last three years. It is learnt here that after the government's green-signal, about 1500 imported-cars remained stuck at Karachi Port

due to Customs authorities reluctance as they are of the view that Ministry of Industries hasn't released any SRO in this regard so far. On the other hand, H M Shahzad, Chairman All Pakistan Motors Dealers Association (APMDA) urged the government to take early notice in this regard and issue the SRO as demurrage charges on dealers are growing on each passing day. In a letter sent to Prime Minister, he said that an amount of Rs250 million is feared to be charged on the cars held up at the port during one week as according to customs See # 2 Page 11

Available Now

Monday, February 7, 2011

TCF Ebad schools to reach 725 calls for by Apr this yr transparent examination Staff Reporter

MUZAFFARABAD: A man decorating roof with lights ahead of Eid Milad-un-Nabi. -Online

CAA resolves frequencies issue with Turkish Airline

PIA says planes flying as per schedule KARACHI: All PIA domestic and international flights will operate according to schedule and there will not be any disruption of flights. This was announced by the PIA spokesman here on Sunday. The PIA spokesman maintained that `rumors regarding any strike call are baseless'. He further stated that no agreement or MOU has been signed with the Turkish Airline `as being falsely projected by President of PALPA'. The PIA spokesman further remarked that the proposed

Code Share Joint Venture Commercial Agreement is subject to approval of Government of Pakistan and other regulatory authorities. It is worth mentioning here that routes are not owned by any airline and therefore cannot be sold or bought. They are Rights of the Government and are only utilised by the designated carrier, he added. The PIA spokesman maintained that the PIA and TK have proposed a code share arrangement. Code share agreements that are being done by most of the airlines to

increase profitability and enhance routes without incurring additional costs. He further said that all employees are dedicated workers and loyal to the airline. "However, a few miscreants /elements want to disrupt the normal working of the airline and create problems for the passengers and general public of Pakistan. It will also affect the image of the airline abroad", the PIA spokesman alleged. The National Flag Carrier will keep operating its flights according to schedule, he con-

cluded. Meanwhile, On the directions of the Prime Minister Syed Yousuf Raza Gilani, Civil Aviation Authority (CAA) amicably resolved the issue of frequencies of Turkish Airlines flights to Karachi. This issue was raised during Prime Minister's visit to Turkey by the Turkish Prime Minister in the meeting. Keeping in view the close brotherly ties between the two countries, the Prime Minister asked the CAA to resolve the issue according to the mutual satisfaction of both sides. -Agencies

KARACHI: Governor Sindh, Dr Ishrat-ul Ebad Khan, has directed that the examinations system be streamlined and made transparent so that the students get better chances to make headway. He was chairing a meeting held at the Governor House here on Sunday. The matters pertaining to the educational and technical boards were discussed at the meeting which was attended by the heads of the boards. The Governor is also the Controlling Authority of the boards in the province. Dr Ishrat directed that merit should be ensured in the system of examinations and the rules and regulations should be in accordance with the present day needs. He also stressed that a uniform system should be in vogue in all the boards. The Chairman of the Board of Intermediate Education Karachi (BIEK), Prof Anwar Ahmed Zai, who is also the chief of the Inter-Board Committee of Chairmen (IBCC), gave a detailed briefing on the occasion. He informed that in the year 2003 a total of 1.2 million students had appeared in the examinations of secondary and intermediate boards in the province and that in 2010 this number went up to 1.9 million and the increase per annum is to the tune of nine per cent. Prof Anwar stated that on the directive of the Governor, the

review committee has completed the review for streamlining the rules and regulations of all the boards and that the process is being now being given a final shape. He also informed that a regional office of the IBCC has been established in Karachi and ‘O’ and ‘A’ level students would get the facility pertaining to equivalence in the province. Prof Anwar further pointed out that the examinations and office record of the boards has been computerised. The websites of the boards have been activated and students are provided required forms and instruction on the websites. It was informed that the boards would get the certificated printed through the Security Printing Press Prof Anwar said that for making the examinations system transparent, the format of the papers has been changed. Twenty percent questions would be objective, 30 per cent descriptive and 50 per cent short answers. The system pertaining to dispatch of question papers and the collection of the same has been improved. The facilities are the examinations centres and the vigilance system has also been improved. The Governor directed that instead of hiring furniture for the examinations centres, the academic institutions be provided funds to improve their infrastructure.-APP

KARACHI: The number of schools in the country being run by The Citizens Foundation (TCF) will increase to 725 in April this year from present 660. This was stated by President and CEO of TCF, Syed Asad Ayub Ahmad. He said that the number of enrolment will go up to 100,000 in April from the current 92,000. Asad pointed out that some 5,000 teachers are imparting education in the TCF schools all over the country. He further stated that more than 100 schools were located in the flood affected areas in the country. Asad said that there are 10 commitments from various organisations and philanthropists for setting up of schools in the flood affected areas. Meanwhile, Siemens Pakistan has extended support for four schools in the flood affected areas -- one each in Sindh, the Punjab, Balochistan and Khyber Pakhtoonkhawa. The agreement was signed by President and CEO of TCF, Syed Asad Ayub Ahmad, and Managing Director and CEO of Siemens Pakistan, Sohail Wajahat Siddiqui, and CFO Murtaza Abbas. A cheque of the first instalment to the tune of Rs1.7 million was also presented on the occasion to the TCF chief by Sohail Wajahat Siddiqui. The total commitment by the Siemens Pakistan in this respect is Rs 4.1 million. The four schools are located in Dera Murad Jamali (Balochistan), Naushero Feroze (Sindh), Shahpur in District Sargodha (Punjab) and Manshera (Khyber Pakhtoonkhwa).

Lawmakers prescribe legal dose to pharmas KARACHI: Speakers including legislators have assured pharmaceutical manufacturers to find a way out to resolve the issues affecting the industry after passing 18th Amendment. "If there is a will there is a way", said Dr Farooq Sattar, former Federal Minister for Overseas Pakistanis and parliamentary leader of MQM in National Assembly while speaking at a seminar on devolution of health sector organised by Pakistan Pharmaceutical Manufacturers Association (PPMA) here on Friday evening. He said that the politics is an art of finding out possibilities and do-ables. "We have passed 19th Amendment to address the issues relating to judiciary

and we can go for 20th Amendment if needed to resolve the problems facing drug manufacturers", he added. Dr Sattar said that though devolution was very close to him and his party, he is ready to address problems being created in sub sectors of health according to the wishes of stakeholders. He hinted that these problems can be addressed by using the option of double taxation under fundamental rights, items 6 and 13 or invoking Article 144 of the Constitution. He said that this issue can be referred to the Council of Common Interest for redressal. The minister said that he will try to arrange a meeting of PPMA with the Parliamentary

Committee for the implementation of 18th Amendment to resolve this issue. Chairman NA Standing Committee on Health Dr Nadeem Ahsan said that he has convened a meeting of the committee on February 9, to discuss this issue. He said it was necessary to remove all the ambiguities before the implementation of 18th Amendment without affecting provincial autonomy. He said foreign donors have also shown concerns over this issue which is also affecting Pakistan's millennium goals. Dr Ahsan promised PPMA to consult with Mian Raza Rabbani, head of 18th Amendment implementation committee for addressing these

issues. "We have already sought the time from him", he added. Chairperson Senate's Standing Committee on Health and deputy parliamentary leader of BNP in Senate, Begum Kulsoom Perveen supported the demand of having a drug regulatory authority in the centre before developing the similar expertise and organisations in the provinces. She questioned that who will check the quality of medicines and who will regulate exports and imports. Senator Abdul Haseeb Khan said that the government should give importance to national pharmaceutical industry and resolve its problems. APP

PM approves promotions of officers of PR PESHAWAR: People buying gifts during their shopping in connection with approaching Valentine’s Day in Saddar, Peshawar. -Online

Pollution raises health risks in Sindh: Sharmila KARACHI: Over 17 million population in the Sindh metropolis is suffering from enviornmental pollution and practical steps are needed to reduce it, said Secretary Information Pakistan Peoples Party (PPP) Women Wing, Sindh, Sharmila Faruqui. Sharmila in a statement on Sunday said, "hundreds of thousands of industrial units, plying of over 16,000 vehicles daily in the city and industrial and sewerage waste have increased pollution in Karachi to an alarming level." Unfortunately, no measures have been taken to reduce the pollution level in the city, she

said, adding such negligence of relevant departments had caused suffering of hundred of thousands of people from sigh and lungs related diseases in the mega city. Most of 16,000 vehicles plying on the roads in Karachi daily were smoke-emitting and neither relevant institutions nor the drivers were paying attention to get maintenance of their vehicles in order to bring pollution level down, she observed. Sharmila daily over 8,000 tons of sewage and industrial waste of Karachi city are drained into the sea which has also caused surge in pollution,

not only in sea but also in the air in the metropolis. She recalled that when she was a member of the Provincial Cabinet, she had raised voice to take action against flaws and faults in public and private transport system. She even travelled in a mini-passengers' bus wearing a burqa to observe its contribution to the pollution and misbehaviour of its staff with ladies' commuters. She said that all political, social and non-governmental organizations working in Karachi would have to launch a joint campaign against environmental degradation. -APP

ISLAMABAD: Prime Minister Syed Yusuf Raza Gilani has approved promotion of Shafiqullah, an officer of Pakistan Railways from grade 20 to grade 21 and eleven officers of Pakistan Railways and Intelligence Bureau from grade 19 to 20. These promotions were recommended by the Central Selection Board headed by Justice (R) Rana Bhagwandas. In Pakistan Railways, Shafiqullah was promoted from BS-20 to BS-21, while Ramzan Shah Gilani, Muhammad Saeed Khawar, Muhammad Arshad, Mehmood Ali Lashari, Mobeen ud Din and Saeed Iqbal Khan were promoted from BS-19 to BS20. Fuad Asadullah Khan, Khurshid Anwar, Nasir Mahmood, Shujaat Ullah Qureshi and Bakhtayar Khan of Intelligence Bureau were promoted from BS-19 to BS20.-APP

HASSANABDAL: Women taking keen interest in the paintings at Fine Art Gallery during Parents Day at Cadet College Hassanabdal. -Online

Monday, February 7, 2011

US dollar weekly outlook

Dollar up on new US jobs, more gains seen US Treasury: can't say China a forex manipulator NEW YORK: The dollar rose against the euro on Friday and could extend its rebound this week, buoyed by higher Treasury yields after a sharp drop in the US jobless rate brightened the outlook for the US economy. The euro fell as low as $1.3543 on trading platform EBS on Friday, retreating further from a nearly three-month high at $1.3862 set earlier last week. Traders said the break through support at $1.3570 suggests a three-week euro rally may be showing signs of exhaustion. "Overall, we think the euro's move was overdone and the retracement we've seen in the second part of last week should probably continue into early this week," said John Doyle, strategist at Tempus Consulting in Washington. The euro was last down 0.3 per cent at $1.3585, headed for its first three-day decline in a month. The next key downside target is around $1.3527, the 100-day moving average on EBS, and a break could open the door for a drop below $1.35. BNP Paribas technical strategist Andrew Chaveriat said the euro could test $1.35 in coming days and $1.3250-$1.3350 over the next few weeks. After hitting a four-month low beneath $1.29 on Jan. 10, the euro had climbed nearly 8 per cent by mid-week, partly on the view the European Central Bank would lift interest rates before the Federal Reserve. But ECB President Jean-Claude Trichet dashed those expectations on Thursday, saying euro-zone inflation expectations remain well

anchored. The latest data from the Commodity Futures Trading Commission showed currency speculators boosted bets in favor of the euro to 39,934 contracts, the highest since the week ended Oct. 26, while bets against the dollar rose to the most since Oct. 19. Recent US data, capped by the jobless rate's decline to 9 per cent in January from 9.4 per cent in December, pushed up US yields and had markets pricing in a two-in-three chance of a US rate hike by year end, up from one-inthree a week ago. "Yields are moving up, and while job creation is not where people want it to be, the feeling is there is an underlying momentum," said Brian Dolan, chief strategist at Forex.com in Bedminster, New Jersey. "The dollar has moved higher on that." The dollar rose 0.7 per cent against the yen to 82.18 yen and 1 per cent against the Swiss franc to 0.9545 Swiss francs. Trading on electronic trading platform EBS posted an unofficial volume record with 2,990 foreign exchange trades recorded in the minute after the release of the jobs data. Some 12,000 deals were recorded in the 10 minutes after the release. Records become official 24 hours after they're set. Some analysts say the market may be getting ahead of itself. Dan Cook, senior analyst at IG Markets in Chicago, noted US employers added a paltry 36,000 jobs in January, though bad weather may have had an impact. The payrolls gain reported by US employers was just a quarter of the 145,000 jobs economists

had expected. But a separate household survey, which is used to determine the jobless rate, showed nearly 600,000 more people reported they were employed. The Federal Reserve has remained dovish, and Chairman Ben Bernanke reiterated last week that the economy remained fragile. "I think the ECB will certainly go ahead of the Fed" in raising interest rates, said Dean Popplewell, chief currency strategist at OANDA in Toronto. "It's all about the question of timing." But he said worries about eurozone's debt problems could resurface as peripheral economies issue more debt in the spring. "The market seems to have neglected some of the peripheral debt issues over the last few weeks, but they will certainly come to the fore and be on everyone's radar as we going into these refinancing starting in March." Traders from one large investment bank reported only modest selling of bullish euro-dollar and euro-yen option structures on Friday, suggesting the longerterm view remains bullish. Investors have grown less anxious about Europe's ability to handle a sovereign debt crisis, and EU policy makers on Friday discussed bolstering a rescue fund for indebted member countries. The US Treasury Department on Friday said China's yuan currency remains "substantially undervalued" and should be permitted to appreciate more rapidly, but said there isn't enough evidence to conclude that Beijing deliberately manipulates its value. -Reuters

Specs raise bets against the USD: CFTC NEW YORK: Currency speculators increased bets against the dollar to the most since October 19, with bets in favor of the euro at their highest level since late the same month, Commodity Futures Trading Commission data showed on Friday. The value of the dollar's net short position rose to $24.9 billion in the week ended Feb. 1, from a net short position of $18.2 billion the previous week, according to Reuters and CFTC calculations. Net long positions on the euro jumped to 39,934 contracts, the highest since the week ended October 26.The net position dollar value of US$6.9 billion, was made up of 80,381 long contracts, a rise of 6,893 contracts from the prior week and 40,447 short contracts, 10,140 contracts down from the prior week.-Reuters

US corn rallies; wheat slips KANSAS CITY: US corn futures on the Chicago Board of Trade rallied on Friday on active fund buying as talk that China would raise corn purchases added to generally strong demand for the food, feed and energy crop. Funds bought an estimated 10,000 corn contracts on the Chicago Board of Trade, pushing the March contract to close up 16 cents at $6.78-1/2, up 5.4 per cent for the week. While corn climbed, wheat futures fell for a second day amid reports of larger-than-expected deliverable stocks of MGEX spring wheat, which is prized for its high protein content. But the market posted a 3.5 per cent gain for the week after severe cold in the US Plains helped prices hit 21/2-year highs. CBOT soybeans ended lower on spillover pressure from a sell-off in crude oil and a three-day rally in the dollar. Funds sold an estimated 4,000 soybean contracts, but the nearby contract ended the week 2.5 per cent higher. Corn, beans and wheat all touched their highest prices since 2008 this week. "Everything has had decent gains for the week, across the ags floor. So a little bit of consolidation here," said Tim Emslie, an analyst with Country Hedging.-Reuters

Sugar returns within sight of 30-year high NEW YORK/LONDON: Raw sugar futures rebounded on Friday, buoyed by a scaled-back forecast for Indian sugar output, while coffee futures retreated from near 13-1/2 year peaks. Raw sugar futures rose as much as 3.8 per cent, drawing to within sight of 30-year peaks, after an Indian state cut its output view for the country's 2010/11 sugar crop to 24 million tonnes, below government estimates. The lower forecast could deter New Delhi from finally approving unrestricted exports, giving sugar markets another boost after a cyclone that pounded northeast Australia on Wednesday sent raw sugar to its highest in three decades. ICE March raw sugar gained 0.60 cent or 1.9 per cent to close at 32.64 cents per lb, recovering from its biggest one-day loss in a month on Thursday, and below the 30-year peak of 36.08 cents touched on Wednesday. The spot contract closed the week down 3.9 per cent, its first weekly loss in three weeks. The market bounce, however, was only a small correction following Thursday's steep dive of 10 per cent. On Liffe, March white sugar closed down $19.80 at $794.40 per tonne, below Wednesday's record high of $857 per tonne, as

the contract caught up with the drop in New York after London markets closed. In cocoa, futures on ICE fell in heavy volumes buoyed by March/May spreading, falling further from last week's one-year high at $3,334 per tonne, basis March, with the market focused on whether presidential claimant Alassane Ouattara would extend his call for a month-long cocoa export ban in Ivory Coast. ICE benchmark March cocoa futures tumbled $107 or 3.2 per cent to end at $3,251 per tonne. Total volume reached more than 35,000 lots, more than double the 30-day average. London May cocoa fell 48 pounds to settle at 2,125 pounds a tonne. This is a 14-pound premium to May down from 18 pounds on Thursday. Coffee moved further away from its recent 13-1/2 year high with Thursday's momentary plunge in sugar futures spooking prices lower, traders said. March arabica coffee futures on ICE dropped 2.05 cents to settle at $2.4930 per lb, the first weak close in four days, after touching a 13-1/2 year peak of $2.5360 a lb on Thursday. Liffe May robusta coffee traded down $31 to settle at $2,237 per tonne, below Thursday's 2-1/4 year high of $2,287 a tonne. -Reuters

US cotton ends limit down as correction bites NEW YORK: US cotton futures finished down the daily limit on Friday on follow-through profit taking as investors took cash off the table after the market's record breaking run this week, analysts said. Cotton futures had rallied almost 30 per cent since the middle of January to trade at its highest level in almost 150 years, but then staged its biggest one-day fall on Thursday in volatile business, Thomson Reuters data showed. Year-to-date, cotton is up almost 20 per cent. The key March cotton contract on ICE Futures US dropped the 4.00 cents limit to end at $1.6786 per lb, with the session top at $1.7244.

Despite the steep sell-off of the last two sessions, the market is up 1.9 per cent on the week. Total volume hit some 31,000 lots, almost 60 per cent above the 30-day norm, Thomson Reuters preliminary data showed. "We inhaled a rally of 40 cents so we had to exhale (in a correction)," said Ron Lawson, cotton analyst for commodity firm logicadvisors.com in Sonoma, California. Some analysts believe the selling was also induced by news the exchange is tightening control of positions in the spot contract before delivery. Mike Stevens, an independent analyst in Louisiana, said the

market also saw further losses from Thursday's key reversal where a new record high was achieved and then market closed nearly limit down. The last time a key reversal happened in the cotton market was on Nov. 10 and "technical weakness" from the reversal on Thursday lingered in the market during Friday's session, Stevens explained. Lawson does not believe the rally is done, pointing to the price of the Cotlook A index, an industry publication which issues the average price of cash cotton purchases in the world. The A Index was being quoted on Friday at $2.0155/lb. -Reuters

Sterling logs wkly gains on rate optimism LONDON: The pound strengthened against the euro for the first week in four and gilts fell after better- than-expected economic data boosted speculation the Bank of England may have room to increase interest rates this year. Sterling appreciated against all but two of its 16 most actively traded currencies while the yield on two-year notes climbed to a 20-month high. Purchasing managers' surveys last week showed Britain's services and construction industries grew in January, while manufacturing expanded at a record pace. Inflation in December accelerated to equal the highest level since 2008. "The market is going through a phase of fretting over UK interest rates on the back of UK inflation fears," said David Page, a fixed-income strategist at Lloyds TSB Corporate Markets in London. "Any signs of strength in the economy, particularly with the dramatic rebounds we've seen in the construction and services PMIs, have added to sterling strength." The pound appreciated 1.6 per cent in the week to 84.43 pence per euro as of 5:02 p.m. in London. Britain's currency climbed 1.4 per cent to $1.6088 in the period. Indications that the UK's economic recovery is intact may add momentum to Bank of England official Andrew Sentance's drive for higher interest rates to tame inflation as policy makers prepare to meet ahead of their next rate decision on Feb. 10. Monetary Policy Committee member Martin Weale joined Sentance in voting for a rate increase at the group's Jan. 13 meeting on concern that inflation may become entrenched. Accelerating price growth may be damaging the Bank of England's credibility, former policy maker Kate Barker said at an event hosted by Anglia Ruskin University in Chelmsford, England.-Agencies

Copper at new record on US data NEW YORK/LONDON: Copper pushed well above $10,000 a tonne to a record high on Friday, driven by encouraging employment data in the United States that backed views of a healthier 2011 demand outlook. Prices of the metal, often viewed as a barometer for economic conditions, posted their biggest weekly gain in nine weeks, as investment demand kept growing in anticipation of expected supply shortages and market deficits this year. London Metal Exchange (LME) copper for threemonths delivery closed up $120 at $10,050 a tonne, after touching a record high $10,100. The benchmark COMEX March contract settled up 3.50 cents at $4.5795 per lb, after hitting its own record at $4.6140. The Friday jobs report added to a steady stream of data this week, including accelerating global manufacturing activity, rising US factory orders, and solid growth in the US services sector. Copper's rally helped tin rise to a record high at $31,300 a tonne. Tin for threemonths delivery closed up $655 at $31,200. Trade was thin as the Lunar New Year holidays that started on Wednesday shut markets in top base metals consumer China. Stocks of copper at LME warehouses last fell 325 tonnes to 394,150 tonnes, a small decline but a bit of respite after a recent string of inventory builds dating back to early December. Nickel climbed $310 to end at $28,350 a tonne. Nippon Steel Corp and Sumitomo Metal Industries planned to create the world's No. 2 steelmaker, fanning expectations of further consolidation in the industry. -Reuters

Asian currencies

Mostly gains for wk led by Thailand baht, peso BANGKOK: Asian currencies had their biggest weekly gain of the year, led by the Philippine peso and Thailand's baht, as upbeat economic data fanned speculation interest rates will be raised to counter inflation. Exports and consumer prices gained more than forecast in South Korea and Indonesia, while overseas sales in Malaysia also exceeded projections, separate data showed. Bank Indonesia unexpectedly raised interest rates for the first time in two years. "Asian economic growth is very solid and they are in an environment allowing central banks to boost rates to fight inflation," said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. "The trend of Asian currency appreciation is still intact." The Asia Dollar Index, which tracks the region's 10 most- traded currencies excluding the yen, climbed 0.6 per cent last week to 116.49 in Hong Kong. The peso advanced 0.8 per cent to 43.765

per dollar, the baht strengthened 0.9 per cent to 30.78 and Indonesia's rupiah rose 0.4 per cent to 8,995. Financial markets in China, Taiwan and South Korea were shut most of the week for the Chinese New Year holidays. The peso had a second weekly gain as a government report showed consumer prices climbed 3.5 per cent in January from a year earlier, the most in four months and more than the median 3.3 per cent gain forecast in a survey of economists. The central bank will consider the data when it reviews interest rates on Feb. 10, Governor Amando Tetangco said. Gross domestic product rose 7.3 per cent in 2010, the fastest growth since 1976, the government reported Jan. 31. Indonesia's rupiah reached its strongest level in four weeks after Bank Indonesia boosted its reference rate by a quarter of a percentage point to 6.75 per cent. The move was predicted by six of 22 economists surveyed before the announcement, with the rest hav-

ing forecast no change. Inflation in Southeast Asia's biggest economy accelerated to a 21-month high of 7.02 per cent in January, official figures show. India's rupee strengthened 0.4 per cent last week to 45.60 per dollar. The statistics office will predict economic growth of 8.6 per cent on Monday, according to the median estimate of economists surveyed ahead of a Feb. 7 announcement. A Feb. 1 report showed exports climbed 36.4 per cent in December from a year earlier, the biggest increase since March. The Korean won fell 0.3 per cent to close at 1,116.95 per dollar on Feb. 1, the last trading day for week. Financial markets in Singapore and Malaysia were shut for the Lunar New Year holidays on Feb. 3 and Feb. 4. The Singapore dollar strengthened 0.6 per cent to S$1.2734 per dollar before the break. Malaysia's ringgit added 0.5 per cent to 3.04 over the same period. -Agencies

C$ hits nearly 2-1/2 yr high on jobs figures TORONTO: The Canadian dollar powered to its highest level against the US dollar since May 2008 on Friday after data showed that Canada produced far more jobs than expected in January, while US job gains were tepid. The currency rose as high as C$0.9832 to the US dollar, or $1.0171 after Statistics Canada said the economy added 69,200 new positions, more than quadruple the 15,000 that markets had expected. The unemployment rate, which had been forecast to remain unchanged, grew to 7.8 per cent from 7.6 per cent as more people entered the workforce.

In the United States, the data showed a rise of 36,000 jobs in January, far less than the 145,000 increase the market had expected, but the unemployment rate fell to its lowest level since April 2009. The contrast was key to the Canadian dollar's outperformance of its US counterpart, said David Watt, senior currency strategist at RBC Capital Markets. "It took a fairly startling jobs number in order to beat the US dollar, but we did manage to be the only currency to beat the US dollar today," he said. The Canadian dollar closed at C$0.9884 to the US dollar, or $1.0112. That was up from

Thursday's North American close at C$0.9910 to the US dollar, or $1.0091. The modest US jobs gain was at odds with other US data for January, which had suggested employment growth was picking up, but severe snow storms that slammed large parts of the country may have been partly to blame for the weak figure. The weak US headline number did not have a deep impact on the US dollar, which allowed the Canadian dollar to strengthen on the back of Canada's own set of job figures and outperform all the other major currencies, said Camilla Sutton, chief currency strategist at Scotia Capital. -Reuters

Oil drops on groundless Egypt report, profit-taking Unfounded talk of announcement on Mubarak pressures oil NEW YORK: Oil prices fell nearly 2 per cent on Friday after an unfounded report about a possible announcement from Egypt set off speculation that President Hosni Mubarak could step down shortly, sparking profit-taking from which the market failed to recover. Prices pulled back from the day's lows as it became clear there was no imminent news from Egypt, but Brent still settled below $100 a barrel for the first time in a week as traders latched onto the rumor as an excuse to sell. Weak US nonfarm payrolls data and modest gains in the dollar also pressured oil. In London, ICE Brent crude for March fell $1.93 to settle at $99.83 a barrel, off a $102.48 intraday peak, logging its biggest daily percentage decline since mid-November. It man-

aged a 41-cent gain on the week. US crude for March delivery fell $1.51 to settle at $89.03 a barrel, managing to bounce from an $88.45 low hit during the speculative sell-off, just above the week's nadir. US crude ended down 31 cents on the week. "The trade finished on a weak note as shorts were apparently emboldened by Brent's drop back below the $100 mark," Jim Ritterbusch, president at Ritterbusch & Associates in Galena, Illinois, said in a note. Traders said the rumor seemed to stem from a brief report on US television channel CNBC, but several hours later there was no news on Egyptian TV about any announcements or transition of power. Gold edged down on the report, but foreign exchange and equities markets were unaffected. Egypt's prime minister said it was unlikely the president

would hand presidential powers to his newly appointed deputy, while hundreds of thousands of Egyptians marched peacefully in Cairo to demand an immediate end to Mubarak's 30-year rule. Investors will continue to eye the region after demonstrations this week in Yemen and Friday's protests in Jordan, where demonstrators said King Abdullah's government reshuffle did not meet their calls for political reform. They will also be looking for any signs that OPEC could move to damp down triple-digit prices by pumping more crude, something price hawks such as Venezuela say is unnecessary. "There is sufficient oil and there have been no interruptions, but if they close Suez, that could take the oil price to $200," Oil Minister Rafael Ramirez told reporters.-Reuters

Gold retreats on Egypt report, safe haven fades NEW YORK: Gold dropped on Friday as the dollar rose and safehaven buying ebbed after an apparently unfounded television report sparked intense speculation that Egypt's President Hosni Mubarak could be stepping down soon, which would end unrest. For the week, gold notched its first weekly gain in 2011 after US employment rose far less than expected in January, and after Federal Reserve Chairman Ben Bernanke indicated monetary policy would stay accommodative in the near term. "I don't think that gold has lost its value in the marketplace in terms of it being treated as a surrogate currency, but rather there is no catalyst at the moment to drive prices higher," said Mark Luschini, chief investment strategist of Janney Montgomery Scott, a brokerage managing about $50 billion client assets. Luschini also cited sharply high-

er US Treasury yields which weighed down on gold's investment appeal. Spot gold dropped 0.3 per cent to $1,348.59 an ounce by 1930 GMT. US gold futures for April delivery settled down $4 to $1,349. US gold futures' specs net longs or bullish position decreased 6 per cent in the week up to Feb. 1, while open interest fell by 9 per cent as funds continued to unwounded long futures positions, US CFTC's latest trade data showed. Silver gained 0.1 per cent to $28.94 an ounce. Holdings of the largest silver ETF, the iShares Silver Trust, fell more than 30 tonnes to their lowest since November on Thursday. On the other hand, sales of silver American Eagles coins smashed to a record high in January. Tom Pawlicki, precious metals and energy analyst at MF Global, noted that silver's open interest and

prices have rebounded much more than gold's. Gold holdings of exchange-traded funds inched higher, with those of the largest, New York's SPDR Gold Trust, edging up just over two tonnes on Thursday. Bullion's demand dropped on after the speculation on Mubarak's resignation, but fears that unrest in Egypt would spread across the Middle East should still provide a floor to prices, analysts said. Gold posted its first weekly gain in five weeks, after rising on Thursday after Bernanke indicated that US monetary policy would stay accommodative. Platinum group metals touched multi-year highs, with platinum reaching its loftiest level since July 2008 at $1,858.50 an ounce and palladium a 10-year peak at $831. Platinum was later up 0.3 per cent at $1,841.24 and palladium down 0.3 per cent at $814.47. -Reuters

4 Monday, February 7, 2011

The Financial Daily International Vol 4, Issue 175

Publisher & Editor-in-Chief: Amir A. Ashary Editor: Shakil H. Jafri Executive Editor: Manzar Naqvi Honorary Advisory Board S. Muneer Hussain Rizvi

Haseeb Khan, FCA Asim Abbas Ashary, CPA

Khurram Shehzad, CFA

Akhtar M. Zaidi, FCA

Prof. Zakaria Sajid (KU)

Dr. A. Hadi Shahid, FCA

Zahid Bukhari SVP HBL (retd)

Muhammad Arif

Ismat Sabir Head office

111-C, Jami Commercial Street 11, Phase VII, DHA Karachi Telephone: 92-21-35311893-6 Fax: 92-21-35388428 URL: www.thefinancialdaily.com Email Address: editor@thefinancialdaily.com

Lahore office 24- Peshawar Block, Fortress Stadium, Lahore Telephone: 92-42-6675595 Fax: 92-42-6664349 Email Address: editor@thefinancialdaily.com

Debt servicing becoming unsustainable While talking about problems facing Pakistan, experts often refer to high interest rate, double digit inflation, low GDP growth rate, rising cost of doing business, poor law & order situation. However, little attention is being paid on the mounting budget deficit likely to far exceed the target agreed with the International Monetary Fund (IMF). The first quarter report released by the State Bank of Pakistan (SBP) on the state of economy should be an eye opener for the policy planners, elected representatives and even the masses, being exploited in the name of 'loan covenants' for the assistance acquired from the lender of last resort, IMF. Now the other multilateral financial institutions have started demanding 'IMFs letter of comfort', which may disrupt flow of funds from these institutions. According to SBP report total debt servicing crossed over one trillion rupees in the fiscal year 2009-10 and Rs305 billion were paid in the first quarter of the current fiscal year. This massive debt servicing is likely to become unsustainable for Pakistan and we hardly expect it to achieve revenue collection of Rs1.6 trillion during the current financial year. According to the details Pakistan paid Rs660 billion as interest on debt and Rs391.8 billion as principal amount. Out of Rs660 billion paid by the government, Rs577.7 billion was interest payment for the domestic debt while external debt servicing amounted to Rs83 billion. The interest payment of liabilities amounted to Rs17.6 billion which shows that bulk of the revenue collected goes towards debt-servicing. The numbers provided by State Bank shows that total debt and liabilities' servicing was 7.3 per cent of the GDP. The external debt and liabilities constituted 34.4 per cent of the GDP while government's domestic debt was 33.8 per cent of the GDP. Pakistan has been facing double digit inflation for the last many years but spending most of the revenue generated on debt servicing hardly leaves any amount to be spent on developmental works. Fiscal deficit is being met by printing of banknotes which further accelerates inflation. The worst concern is that Pakistan's GDP is growing at a disappointingly low rate of less than 3 per cent, almost equal to grossly understated population growth rate. Subdued economic growth is not helping in creating new production facilities, creating new employment opportunities and prospects of increasing revenue collection. Lately, the government was forced to withdraw increase in POL prices and also could not increase prices becoming due beginning of February. Hike in global prices of crude oil will soon force the government to either opt for increasing electricity and POL prices or bearing additional burden of subsidy. This problem can't be resolved without coming up a detailed plan for curtailing expenditures and increasing revenue collection. The ruling coalition as well as opposition has to agree on the strategies to accelerate GDP growth rate, the key to resolving many economic issues.

Disclaimer:

All reports and recommendations have been prepared for your information only. Summary and Analysis are not recommendation to buy or sell. This information should only be used by investors who are aware of the risk inherent in securities trading. The facts, information, data, indicators and charts presented have been obtained from sources believed to be reliable, but their accuracy and completeness cannot be guaranteed. The Financial Daily International and its employees are not responsible for any loss arising from use of these reports and recommendations.

Authoritarian International Going on the Defensive I

t has been a bad couple of weeks for what Vitali Silitski, a political scientist, calls the Authoritarian International. Silitski is from Belarus - a good background for studying authoritarian rulers and he is a student of the troubling way in which the world's autocrats responded to the "color" revolutions in some former Soviet republics a few years ago by increasing repression at home and forming a loose international support group. China is the star of this Authoritarian International, with its robust growth guided by a government that quashed the 1989 Tiananmen Square protests but now wins plaudits even from many Western business leaders who concede that it is often better at getting things done than querulous democracies. But just as the Authoritarian International drew strength from the Chinese model and the so-called "Beijing Consensus" it inspired, the uprisings in Egypt and Tunisia have been unsettling for the world's unelected rulers. "When you see somebody like Chávez in Venezuela reaching out to somebody like Ahmadinejad it is clear these authoritarian regimes are forming an alliance that helps them to maintain their control," Aryeh Neier, the president of the Open Society foundations, said, referring to President Hugo Chávez of Venezuela and President Mahmoud Ahmadinejad of Iran. "If I were Hu Jintao," he said of the Chinese president, "I would be nervous at this moment." If you happen to be a dictator, the scariest thing about the Egyptian uprising is its suddenness. Mohamed A. El-Erian, chief executive of the bond giant Pimco, is the son of an Egyptian diplomat, holds an Egyptian passport, and spent much of his childhood in Egypt. He is an expert in emerging markets, where regime change is the norm, and he spent Christmas with his family in Egypt. But he, like everyone else, was taken by surprise. "These processes aren't linear," ElErian said. "Nothing happens, and nothing happens and nothing happens, and then everything happens. The protest movement got ahead of policy makers in both Egypt and the West." That was certainly true last week at the annual meeting of the World Economic Forum in Davos, Switzerland, which largely ignored the world-changing events in the Middle East in its long-set official program. Yet Egypt was the talk of the corridors and cafes, and, apart

from the Arab participants, some of the most riveted were the Russians. That is because, as the Russian opposition leader Boris Y. Nemtsov said by telephone from Moscow this week, "many in Russia are drawing direct parallels between Mubarak and Putin." A key similarity between the Egyptian leader and Prime Minister Vladimir Putin, in the view of Nemtsov, a former deputy prime minister and provincial

often those where the economy is doing reasonably well, but where gains are unequally shared. Hence, for example, the complaints in Tunisia about the enrichment of Leila Trabelsi, wife of the deposed president, and her family. "In Egypt, there was an income distribution problem, even though the economy was growing impressively," El-Erian said. "But there wasn't enough trickle down."

“

Silitski is from Belarus - a good background for studying authoritarian rulers - and he is a student of the troubling way in which the world's autocrats responded to the "color" revolutions in some former Soviet republics a few years ago by increasing repression at home and forming a loose international support group

governor, is that "both are corrupt regimes and both regimes have been about the enrichment of a small group of people around the leader." El-Erian agrees that the gap between the super-privileged and everyone else

China's mandarins are seen by some as the world's smartest authoritarians. One example might be the information war that China has waged around the events in Egypt, restricting online access to independent news while in the official

"When you see somebody like Chávez in Venezuela reaching out to somebody like Ahmadinejad it is clear these authoritarian regimes are forming an alliance that helps them to maintain their control," Aryeh Neier, the president of the Open Society foundations, said, referring to President Hugo Chávez of Venezuela and President Mahmoud Ahmadinejad of Iran. "If I were Hu Jintao," he said of the Chinese president, "I would be nervous at this moment." was an Achilles' heel of the Mubarak regime. That weakness was invisible - or deemed irrelevant - to many because of the growth of the economy overall. But the lesson of history is that the most fragile authoritarian regimes aren't necessarily the poorest ones. They are

media emphasizing the "chaos" attendant upon the uprising. Another is that Chinese leaders are conscious of their vulnerability to public perceptions that Communist Party rule is about enriching the cadres, rather than generating prosperity as a whole. That is why the most surprising story out of

China recently was the conviction of Li Qiming, son of a senior police official, who ran over and killed a young woman. At some level, the Russians have listened. Speaking in Davos before the uprising in Egypt had gathered true force, President Dmitri A. Medvedev said: "What happened in Tunisia, I think, is quite a substantial lesson to learn for any authorities. The authorities must not simply sit in their convenient chairs but develop themselves together with the society. When the authorities don't catch up with the development of the society, don't meet the aspiration of the people, the outcome is very sad." Nemtsov doesn't think that Russia's rulers will necessarily heed that advice. Russia has oil, he noted, "but the Russian regime is so corrupt it requires the price of oil to constantly increase. Oil won't save Putin." For the West, one conclusion must be that even though authoritarian plutocrats can be easier to work with than dissidents. Hillary Rodham Clinton, the US secretary of state, has spoken publicly about her warm personal friendship with Mubarak and his wife, Suzanne, who has upheld women's rights - staying close to the activists is not just morally justifiable, it is pragmatic, too. Carl Bildt, the Swedish foreign minister, wrote in an e-mail that one indirect consequence of the uprising in Egypt will be that "Western governments will be more alert to the need to reach out to civil society in these societies and be more proactive on some sort of democracy agenda." He sent that message from Warsaw, where he was working to support the beleaguered opposition in Belarus. Indeed, the hardest part of overthrowing authoritarian regimes is often the day after. "If you look at the most successful transitions - Poland, Mexico, Taiwan they've been long hauls," said Lucan Way, a political scientist at the University of Toronto. "You want there to be established oppositions, and that doesn't happen in a two-week period." Silitski argues that the Authoritarian International was emboldened by the disappointing performances of the governments that were installed by the color revolutions - the Rose Revolution in Georgia, the Orange Revolution in Ukraine, and the Tulip Revolution in Kyrgyzstan. What one might dub the Democracy International could be needed now to prevent a similarly disappointing second act in the Arab world.-Reuters

West Rethinks its Arab Realpolitik A

stonished by the uprising in Egypt, Western countries anxious to be on the right side of history have started to reassess ties to army-backed Arab strongmen stubbornly opposed to democracy. On grounds of both principle and self-interest, the West must promote more responsive and democratic government in the region to ensure peaceful change in societies yearning for a better life, officials at a security conference in Germany said. "The past two weeks are a wake-up call," former Republican presidential candidate John McCain said. He said he wanted democracy in the region not out of "some misplaced moralism" but because the resultant stability would help the United States. "The greatest guarantee of stability is democracy ... Our national interests demand it (in the Middle East)." Whether those sentiments turn into reality may hinge on the outcome of events in Egypt, the Arab world's most populous and influential country, where an unprecedented revolt has shaken President Hosni Mubarak's 30year-old grip on power. "What happens in Egypt affects all of our interests throughout the region," said Frank Wisner, President Barack Obama's private envoy to the Egyptian crisis. "We are aiming for an orderly transition to a democratic future. DOUBLE STANDARD Western democracy rhetoric tends to be greeted with cynicism in the Middle East, because the region has been here before. A US push for democracy in the Middle East after the 2003 Iraq invasion ran out of steam when the Islamist movement Hamas won parliamentary elections in the Palestinian territories in 2006. Critics of Western diplomacy in the region says this episode reflected a double standard, namely that the West

compromises on its democratic ideals when the outcome would be unfavourable. But many speakers at the gathering said the revolts in Tunisia and espe-

they say would bring an Iranian-style theocratic rule to the region. This preoccupation with Islamist influence was echoed at the gathering by Israeli National Security Adviser

“

On grounds of both principle and self-interest, the West must promote more responsive and democratic government in the region to ensure peaceful change in societies yearning for a better life, officials at a security conference in Germany said

cially Egypt showed that this time it could be different, because these were genuinely popular expressions of anger about corruption, joblessness and poor state services. The involvement of youths, secularists and the educated middle class gave the lie to any notion that

Uzi Arad, who said security should be the top Western concern in the region. But many Western analysts said the revolt had brought a chance for more secular, modernist and technocratic forces to become involved in government. "Our friends are those that want to

Springborg, Professor of National Security Affairs at the US Naval Postgraduate School, says the army is working quietly with the West to remove Mubarak from power in return for keeping its behind-the-scenes dominance of the political system Islamists were at the vanguard of opposition forces in the Arab world. Arab governments have long said the only alternatives to their repressive rule are banned Islamist groups

take Egypt into the modern world," Swedish Foreign Minister Carl Bildt said. Egypt was an opportunity for democracy not to be missed. John Chipman, Director-General of

the International Institute for Strategic Studies, saw the idea that the only alternative to Mubarak was Islamist as a "totally out of date mantra." EMERGENCY LAW "There is a possibility of a technocratic government of all the talents ... if the United States and the European Union favour it," he said. Diplomats say a successful move to better governance in Egypt would inspire similar changes in other Arab countries. Arab states, from Morocco to Yemen, have much in common with Egypt: Many have large populations of unemployed young, entrenched leaderships, rule under state of emergency laws, and opposition groups which say it is time for democracy. Some analysts say that whether Mubarak goes or stays, the real behind-the-scenes power in the country will remain the army: Egypt's large armed forces have been at the heart of power since army officers overthrew the monarchy in 1952. Chipman said continued military influence was not necessarily a concern. "Yes the military can hold the ring, but they would hold the ring for a very different type of government. I think that is still there to play for." One of the more pessimistic voices, from a democrat's point of view, is that of US academic Robert Springborg, who sees "no chance whatsoever" of Washington ending its habit of forging alliances with military-backed autocrats. Springborg, Professor of National Security Affairs at the US Naval Postgraduate School, says the army is working quietly with the West to remove Mubarak from power in return for keeping its behind-the-scenes dominance of the political system. "We have missed a historic opportunity," he said, arguing that a secular democratic Egypt would have been in Israel's interest. -Reuters

Monday, February 7, 2011

Tokyo bourse to lengthen trading hours from May 9

Bangladeshis protest over another big fall in stocks market

Weekly Review

KSE calls it a flat week

KSE-100 Index Opening Closing Change % Change Turnover (mn)

12,462.70 12,415.35 47.35 0.38 587.59

LSE-25 Index Opening Closing Change % Change Turnover (mn)

3,849.50 3,791.92 57.58 1.50 19.69

ISE-10 Index Opening Closing Change % Change Turnover (mn)

Nawaz Ali

3,055.77 3,056.41 0.64 0.02 0.54

Major Gainers

Change

NESTLE 3,405.44 RMPL 2,420.30 IDYM 262.49 SHEZ 198.05 CPL 200.64

Symbol

111.69 100.30 27.54 22.59 16.28

Major Losers

Symbol

Change

ULEVER 4,385.65 UPFL 1,105.09 SIEM 1,091.06 NRL 283.58 WYETH 999.99

-160.63 -111.90 -43.94 -42.76 -28.01

Top 5 Volume Leaders

Symbol LOTPTA ANL FFBL NCL ENGRO

Close Vol (mn) 16.38 11.28 41.36 25.79 221.05

118.17 30.47 28.76 24.75 17.96

Active Issues Plus Minus Unchanged

167 250 15

Sector Updates FERTILISER 000 tonnes

Urea Offtake (Jan to Nov 10) 5,463 Urea Offtake (Nov 10) 845 Urea Price (Rs/50 kg) 870 DAP Offtake (Jan to Nov 09) 121 DAP Offtake (Nov 10) 152 DAP Price (Rs/50 kg) 3,137

AUTOMOBILE ASSEMBLER PAK SUZUKI MOTOR Units Production (July 10 to Nov 10) Sales (July 10 to Nov 10) Production (Nov 10) Sales (Nov 10)

33,929 32,092 7,087 6,813

INDUS MOTOR CO Production (July 10 to Nov 10) 20,987 Sales (July 10 to Nov 10) 20,375 Production (Nov 10) 3,974 Sales (Nov 10) 3,753

HONDA ATLAS CAR Production (July 10 to Nov 10)6,626 Sales (July 10 to Nov 10) 6,247 Production (Nov 10) 1,145 Sales (Nov 10) 1,075

DEWAN FAROOQ MOTORS Production (July 10 to Nov 10) 186 Sales (July 10 to Nov 10) 70 Production (Nov 10) 0 Sales (Nov 10) 0

BANKING SECTOR Scheduled bank (Rs in mn) Deposit (December 3,10) 4,824,464 Advances (December 3,10) 3,050,639 Investments (December 3,10) 1,916,917 Spread (October 10) 7.49%

OIL MARKETING CO (000 tons) MS (Jul 10 to Nov 10) MS (Nov 10) Kerosene (Jul 10 to Nov 10) Kerosene (Nov 10) JP (Jul 10 to Nov 10) JP (Nov 10) HSD (Jul 10 to Nov 10) HSD (Nov 10) LDO (Jul 10 to Nov 10)) LDO (Nov 10) Fuel Oil (Jul 10 to Nov 10) Fuel Oil (Nov 10) Others (Jul 10 to Nov 10) Others (Nov 10)

PRICES (Ex-Refinery) MS (1 Dec 10) MS (1 Nov 10) MS % Chg Kerosene (1 Dec 10) Kerosene (1 Nov 10) Kerosene % Chg JP-1 (1 Dec 10) JP-1 (1 Nov 10) JP-1 % Chg HSD (1 Dec 10) HSD (1 Nov 10) HSD % Chg LDO (1 Dec 10) LDO (1 Nov 10) LDO % Chg Fuel Oil (1 Dec 10) Fuel Oil (1 Nov 10)

932 186 66 12 589 124 2,792 612 26 4 3,641 572 3 1

Rs 45.15 44.53 1.39% 52.04 51.25 1.54% 52.27 51.48 1.53% 55.20 54.24 1.77% 50.52 49.51 2.04% 43,019 42,046

NEW YORK: NYSE stock traders wear their favorite NFL jerseys during the NFL Experience Tailgate party at the New York Stock Exchange.-Reuters

Wall Street weekly outlook

Market could rally on earnings, technicals NEW YORK: With earnings continuing to surprise on the upside and minimal technical resistance ahead, the bears may have to wait a bit longer for the much-anticipated end to the current stock rally. The VIX, a gauge of investor anxiety, dropped last week despite unrest in the Middle East and oil prices are basically unchanged from two weeks ago. After posting its best week in the past nine, the S&P 500 has actually seen oversold levels tick lower. "I expect the market to continue to rally despite the fact the economic news is sluggish in the jobs front," said Michael Yoshikami, chief investment strategist at YCMNet Advisors in Walnut Creek, California. Government data showed Friday the US economy created 36,000 jobs in January, far less than expected, but the unemployment rate fell to its lowest since April 2009. Economists agreed a recovery in the labor market was proceeding but not gaining speed. Upbeat signals in the economy, coupled with a positive bias in the current earnings season, should continue to propel equities higher. More than 70 per cent of the S&P 500 companies have reported earnings above estimates so far, according to Thomson Reuters data. Investors expect aggregate earnings rose 37 per cent in the last quarter, the highest estimate for that period in more than 10 months. "We believe corporate earnings will continue to recover as companies are more efficient and economies bounce back," Yoshikami said.

The energy, industrials and technology sectors are "trading well into overbought territory," according to a report from Bespoke Investment Group. But two recent weeks of declines are helping ease overall selling pressure, and the rally that started in September shows no signs of weakness. "This market has been really eating up resistance levels as an every week event," said John Kosar, director of research at Asbury Research in Chicago. "We targeted 1,313 for this week as a nearterm inflection point, and we haven't broken it yet." The target coincides with the benchmark's highest level in August 2008. Chartists have mentioned the 1,360 area, the 76.4 retracement of the S&P's downhill move from late 2007 to March 2009, as one of the few technical hurdles the index faces before hitting 1,400. The S&P has risen 25 per cent since the start of September, which has led to a lack of confidence and calls for a pullback. Still, the CBOE volatility index fell 20.5 per cent last week after a near 30 per cent spike in the two previous weeks. "There's a healthy degree of skepticism and many people are still calling for a correction," said Richard Ross, global technical strategist at Auerbach Grayson in New York. This week is slow in terms of economic indicators, with the preliminary reading of the Reuters/University of Michigan consumer sentiment as the highlight of the week. The reading is expected to tick up to 75 from last month's

74.2, according to a Reuters poll. "There's enough of bits and pieces of data that if they are in the aggregate positive, they can create an (upturn) in the market," said Wasif Latif, vice president of equity investments at USAA Investment Management in San Antonio, Texas. Some investors mentioned a spike in oil prices as one of the possible headwinds for the economic recovery, and the unrest in the Middle East as an important variable for equities. As hundreds of thousands of Egyptians marched in Cairo on Friday to demand an immediate end to President Hosni Mubarak's rule, Brent oil settled below $100 a barrel for the first time in a week. US crude for March delivery fell $1.51 to settle at $89.03 a barrel. "If oil prices continue to rise and Middle East chaos spreads, you will potentially see a headwind develop for the global economy and that will affect the stock market," said YCMNet's Yoshikami. "Oil at $110 barrel becomes a significant headwind for the economy." Federal Reserve Chairman Ben Bernanke offered a moderately more optimistic assessment of the economy's prospects than in previous remarks, although he made clear the recovery still needs support from the Fed. "As long as the Fed is indicating they will remain supportive and accommodating, that will continue to provide some degree of support to the market," said USAA's Latif. "Investors will see weakness in the market as a reason to buy." -Reuters

KARACHI: Karachi Stock Exchange (KSE) ended lower last week as investors onemindedly let go of their holdings due to weak global markets and uncertainty on deemed duty for refineries. However some positive activities were witnessed towards the end of the week on hopes of an early launch of a leverage product. The benchmark KSE 100Index fell by 47 points to close at 12,415 points, while it touched a highest and the lowest level at 12,613 and 12,172 points respectively. KSE 30-Index was down by 56 points to close at 12,095 points and KSE all-share index dropped 35 points to close at 8,603 points. Sana Hanif, analyst at JS Global Capital said that though SBP kept the discount rate unchanged at 14 per cent last weekend (contrary to market expectations), KSE remained under pressure during the first three trading sessions of the week led by preemptive selling by local investors amid Egyptian unrest. On the first day of the week despite some intraday bullish activities spurred by SBP's surpriser, index lost more than 100 points at the end of the day due to selling at higher levels on weak global stock markets hit by Egyptian crisis and rumors regarding slash of deemed duty for refineries. Bearish activities then barreled ahead during the next two days also as investors kept offloading on economic concerns after Ogra decided to hold petroleum prices coupled with uncertainty over deemed duty for refineries. Therefore index lost 85 and 30 points respectively at the end of Tuesday and

Wednesday respectively. However, market bounced back on Thursday on hopes of an early launch of Margin Trading System (MTS) as expectations heightened after the news that SECP Chairman will visit the exchange this week. Being moved by this news, index gained 116 points on Thursday while positive activities continued on Friday too with green close. Asad Siddiqui, analyst at Invest Cap said that investors' confidence was somewhat restored later during the week on the expectation of leverage product, which is expected to be reintroduced in the market by Feb 21. Lucky Cement was the major company that announced its corporate results during the week which stood below the market consensus announcing an EPS of Rs4.52/share for 1HFY11. Some of the major companies set to announce their corporate results this week are MCB, ABL, and PSO. Investor participation saw a minor improvement as 587 million shares traded during the week which is above 1 million shares more than a turnover of 586 million shares a week earlier. Lotte Pakistan stood as the volume leader with 118.17 million shares followed by Azgard Nine with 30.47 million and Fauji Fertilizer Bin Qasim with 28.76 million shares. Out of total 432 active issues 250 came down, 167 moved up while 15 issues went nowhere. Foreign investors however remained on the buying side where according to NCCPL data their net-buying stood at $6.1 million during the week while on the lcoal side companies did a net-selling of $11.6 million.

Gulf stocks mkt

Mostly gain; SArabia up for 4th day DUBAI: Banks are among gainers as Saudi Arabia's index ends higher for a fourth day, with the kingdom's banks seen increasing lending in 2011 as risk aversion lessens. Samba Financial Group climbs 0.9 per cent, Arab Bank rises 1.7 per cent and SABB adds 0.8 per cent. Sofia El Boury, Shuaa Capital assistant vice-president for research, says Saudi banks offer the most growth potential regionally. "The catalyst will be increased lending growth to corporate borrowers. There will be a number of drivers for this growth, with the biggest being large government infrastructure spending," says Boury. "The contribution of local banks in terms of providing project financing for this spending will increase, it's just that 2010 was a year of risk aversion and insufficient credit demand. "There's a will from the authorities to channel excess liquidity into lending. Banks' liquidity positions are comfortable and have the capacity to lend, but they need an extra push to make that happen." In December, Saudi Arabia announced a record budget for 2011 of $155 billion as the world's top oil exporter invests in education and infrastructure to create jobs for its fast-growing young population. Saudi's index climbs 0.8 per cent to 6,585 points. Dubai Islamic Bank hits a three-month high as investors bet its earnings may beat estimates following upbeat results from other UAE lenders, helping Dubai's index rise for a third session in four. Dubai Islamic rises 3.6 per cent to its highest finish since Nov.4. "This is probably in line with the numbers coming out of the UAE banking sector - people are now expecting lower provisions, so the numbers should be good," says Haissam Arabi, chief executive and fund manager at Gulfmena Alternative Investments. On Tuesday, Fitch Ratings gave Dubai Islamic a stable outlook, while on Wednesday National Bank of Abu Dhabi reported a 71 per cent rise in fourth-quarter profit.-Reuters

Dhiyan

FROM POSITIVE TO NEGATIVE Iqbal Ismail, Chairman ACE Securities On back of rising international oil prices, market is expected to show bullish activities in the coming days where index can gain about 200 points this week and moving forward in the short-term it may touch 13,000 points level. Investors are therefore advised to invest only in oil sector stocks. Along with higher international oil prices, improvement in economic situation and continued foreign buying would also set off new rallies. Market would be positive today.

Tariq Hussain Khan, Head of Portfolio Management United Capital The outlook is still bearish because index hasn't witnessed a major correction last week therefore it is expected that it might fall to 12,000 level. However if it manages to sustain thereabout for 1-2 sessions then we might see a rebound. The likely launch of Margin Trading System (MTS), positive economic numbers and continued foreign interest would support it. Adopt 'buy on dips' stance and in this regard stocks belonging to E&P, OMCs, fertilisers, cement, and banking are investable. Today market might open positive but is likely to close negative.

Monday, February 7, 2011

Market

KSE 100 Index

Symbols

Volume

587,593,129

Value

28,668,801,624

Trades

350,575

Advanced Declined Unchanged Total

167 250 15 432

Current High Low Change

All Share Index

12,415.35 12,613.54 12,172.22 i47.35

Current High Low Change

OIL AND GAS

Paid up Cap(mn)

Company

Open

High

High Low 1,625.52 1,551.56 Total cos Defaulter cos P/BV (x) ROE (%) 3.74 32.54 Low

Close Chg

Current High Low Change

8,603.93 8,739.80 8,435.49 i35.60

Alert ! Unusual Movements

12,095.36 12,324.24 11,790.36 i56.85

Nimir Industrial Chemicals Ltd

INDUSTRIAL TRANSPORTATION

Performance of SR Oil and Gas Index Open 1,594.40 Turnover 42,902,871 P/E (x) 11.51

KSE 30 Index

Performance of SR Industrial Transportation Index

Close Change % Change 1,582.88 -11.51 -0.72 Listed cap Market cap 200-Day High 65,194.15 mn 1,220,154.07 mn Payout (%) Div Yield (%) 200-Day Low 55.94 4.86 Last 60 days High Low

Volume

2010 Div BR (%) (%)

Paid up Cap(mn)

Open

High

Low

Close Chg

Close 717.52 Listed cap 3,242.17 mn Payout (%) 11.08

Volume

Change % Change -14.32 -1.96 Market cap 200-Day High 12,504.17 mn Div Yield (%) 200-Day Low 2.01 -

Last 60 days High Low

2010 Div BR (%) (%)

2011 Div BR (%) (%)

691

7.00 391.12

396.85 365.00 387.43 -3.69

1957761 401.00

300.00

Pak Int Cont. Terminal

1092

7.00

70.50

73.75

69.00

69.97 -0.53

241662

76.65

68.00

Attock Refinery

853

4.93 139.36

143.58 117.25 121.05 -18.31

13161225 146.90

115.25

PNSC

1321

37.97

37.34

38.00

34.56

34.93 -2.41

52486

39.45

32.36

Mari Gas Company

735 17.56 130.72

133.98 126.00 129.56 -1.16

252732

141.65

117.00

National Refinery

800

5.88 326.34

335.00 275.97 283.58 -42.76

3804085 335.00

223.50

200

Oil & Gas Development 43009 11.68 173.06 Pak Petroleum Pak Refinery Limited P.S.O

20B115.00

Company

High Low 758.07 708.43 Total cos Defaulter cos P/BV (x) ROE (%) 1.40 25.53

Attock Petroleum

Pak Oilfields

300

2011 Div BR (%) (%)

Open 731.85 Turnover 294,148 P/E (x) 5.50

175.80 168.01 172.70 -0.36

3374307 185.00

155.40

- 15.00

11950

7.87 210.78

217.25 207.00 215.18

4.40

4771815 229.80

187.65

20B 50.00

2365

7.65 328.91

337.33 321.50 331.78

2.87

10107808 341.50

248.00

255

-100.00

350

- 113.18

1715

4.90 304.44

Shell Gas LPG

226

32.15

Shell Pakistan

685 11.03 210.17

113.90

97.00

97.98 -15.20

308.00 281.00 289.31 -15.13 32.97

30.71

31.60 -0.55

218.99 202.00 215.11

4.94

296562

122.22

80.00

4820207 317.79

277.45

30.71

192.50

16559

39.89

339810

222.00

CHEMICALS Open High Low 1,592.25 1,625.03 1,543.51 Turnover Total cos Defaulter cos 193,795,271 P/E (x) P/BV (x) ROE (%) 9.79 3.43 35.00 Company

Change % Change 12.74 0.80 Market cap 200-Day High 354,155.90 mn Div Yield (%) 200-Day Low 4.98 -

Open

High

Low

Close Chg

Volume

Last 60 days High Low

3924

8.78

25.75

25.67

22.85

24.22 -1.53

96537

26.73

250 12.97

93.12

98.00

89.63

94.43 1.31

BOC (Pak)

273

7.18 184.36

213.30 186.00 200.64 16.28

Dawood Hercules

Clariant Pak

1203

8.54 204.75

210.00 198.15 205.98 1.23

3663

Engro Corporation Ltd Fatima Fertilizer

2.91

3277 12.15 212.07 22000

11.82

Fauji Fertilizer

6785

9.25 152.77

Fauji Fert.Bin Qasim

9341

7.80

ICI Pakistan

1388

Leiner Gelatine Lotte Pakistan Mandviwala Nimir Ind Chemical Sardar Chemical Shaffi Chemical

8.21 149.69

2.75

2.92 0.01

222.20 211.00 221.05 8.98 12.20

10.70

11.98 0.16

154.90 145.10 150.38 -2.39 41.85

40.01

41.36 0.17

152.25 138.00 145.78 -3.91

24662

2010 Div BR (%) (%)

20.26

103.94

2011 Div BR (%) (%) -

12.64

9.16

12454339 157.90

108.00

130

25B

28762164 43.99

31.56

52.5

2391052 158.49

131.89

14.60 2.61

8273

20.95

9.99

14.60

16.38 0.85

118171137 16.51

10.93

1.68

1.55

1.10

1.17 -0.51

1.01

1106

1.73

2.27

1.70

2.21 0.48

9409960

2.74

1.38

1.10

0.92

0.92 -0.18

18000

1.40

0.90

2.39

2.40

2.05

2.40 0.01

120.00 112.10 112.56 -7.38

43777 5730

3.40

2.03

139.40

104.00

13.30

13.50

12.90

13.19 -0.11

499623

14.69

12.70

38.70

38.80

36.00

36.93 -1.77

9804

41.99

32.00

FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,080.42 Turnover 309,820 P/E (x) 5.39 Company

Paid up Cap(mn)

High Low 1,109.02 1,016.41 Total cos Defaulter cos P/BV (x) ROE (%) 0.40 7.47

Close 1,058.58 Listed cap 1,186.83 mn Payout (%) 25.28

Open

High

Low

Close Chg

Volume

Change % Change -21.84 -2.02 Market cap 200-Day High 2,934.38 mn Div Yield (%) 200-Day Low 4.69 -

Last 60 days High Low

2010 Div BR (%) (%)

22.91

23.97

0.22

39017

26.74

21.00

4.80

4.97

4.41

4.43 -0.37

89825

5.50

4.41

4.75

5.48

4.15

4.32 -0.43

5151

5.75

4.01

Honda Atlas Cars

1428

2011 Div BR (%) (%)

Century Paper

707

16.49

16.65

14.95

16.05 -0.44

279275

19.69

14.95

Security Paper

411

6.86

39.04

40.48

37.70

38.40 -0.64

27803

47.70

37.70

4.36

Company

Paid up Cap(mn)

Open

High

Low

Close Chg

565

3.09

30.59

31.00

28.61

29.55 -1.04

Crescent Steel

Close 1,034.93 Listed cap 3,596.11 mn Payout (%) 30.91

1288719 31.00

Change % Change -14.02 -1.34 Market cap 200-Day High 9,944.50 mn Div Yield (%) 200-Day Low 9.51 -

24.01

2010 Div BR (%) (%) 30

2011 Div BR (%) (%)

- 10.00

Dost Steels Ltd

675

2.60

2.65

2.45

2.55 -0.05

81279

3.29

2.45

Huffaz Pipe

555

9.01

14.65

15.00

14.00

14.41 -0.24

64510

16.51

13.75

1199 18.73

51.15

52.29

50.05

51.51 0.36

362159

62.20

44.53

20B

International Ind

Open 1,840.66 Turnover 1,065,222 P/E (x) 46.24 Company

Paid up Cap(mn)

AL-Noor Sugar XD Ansari Sugar Chashma Sugar XD Crescent Sugar Dewan Sugar Fecto Sugar Habib Sugar Habib-ADM Ltd Ismail Ind J D WSugar Mehran SugarXDXB Mirza Sugar XD Noon Pakistan Noon Sugar Pangrio Sugar XD Quice Food S S Oil Sakrand Sugar Shahmurad Sugar XD Shahtaj Sugar Tandlianwala

186 244 287 214 365 146 750 200 505 539 157 141 48 165 109 107 57 223 211 120 1177

PE 1.08 0.26 3.67 0.61 8.82 11.39 34.35 1.23 1.79 3.34 1.10 7.50 0.25 3.25 3.59 372.73

Company

Paid up Cap(mn)

Al-Abbas Cement Attock Cement Berger Paints Bestway Cement Cherat Cement Dadabhoy Cement

High

Low

Close Chg

Change % Change -25.77 -2.66 Market cap 200-Day High 66,332.14 mn Div Yield (%) 200-Day Low 2.57 -

Last 60 days High Low

Volume

3.09

3.24

2.75

2.94 -0.15

169413

3.98

2.75

866

6.58

55.04

55.80

51.50

52.00 -3.04

225862

65.99

51.50

- 100R 50

182

21.03

21.74

20.00

24.16

16.55

14.00

13.45

11.21

12.54 -1.46

11935

24.80

11.21

11.00

9.95

10.40 -0.60

96635

12.75

9.95

1.95

1.58

1.68 -0.02

81172

2.49

1.90 -0.25

519203

3.10

1.45

29.18 -0.55

7787562

32.30

27.67

20R

92R

6.43

4.90 7.00

5.00 8.00

4.61 7.00

4.63 -0.27 7.44 0.44

3243458

5.55

18749

4.61

8.20

6.25

1.84 28.32

3.88

2.18 30.25

502

1.50

2.15 29.73

6933

3.49

Fauji Cement

6090

1.50

948 3891

3651 121.58

Fecto Cement

2.06 0.40

Dewan Cement

Flying Cement Ltd

1.60

DG Khan Cement Ltd

Frontier Ceramics

2.50

- 122R

2011 Div BR (%) (%)

956 23.64

1.70

20586

2010 Div BR (%) (%)

3257

1.66

20.40 -0.63

1760

1.71

1.94

1.66

1.70 -0.01

143594

2.25

1.60

1.73

2.20

1.41

1.86 0.13

58720

3.01

1.18

Haydery Const

0.60

0.74

0.46

0.48 -0.12

89961

0.99

0.25

Kohat Cement

1288

6.35

6.40

6.00

6.30 -0.05

91490

8.70

6.00

Lucky Cement

3234

6.42

73.76

75.25

69.35

71.40 -2.36

79.98

69.35

Maple Leaf Cement

5261

1.22

Pioneer Cement

2228

6.70

6.90

6.51

6.90 0.20

137551

8.20

6.51

798 455.00

17.75

18.48

16.75

18.20 0.45

46868

20.44

16.75

50R

Thatta Cement

2.72

2.74

2.56

2.63 -0.09

5989785 645997

3.30

2.56

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 1,057.41 Turnover 1,086,481 P/E (x) 2.83

High Low 1,069.21 1,006.56 Total cos Defaulter cos P/BV (x) ROE (%) 1.24 43.91

Close 1,013.42 Listed cap 3,043.31 mn Payout (%) 15.55

Change % Change -43.99 -4.16 Market cap 200-Day High 38,070.71 mn Div Yield (%) 200-Day Low 5.48 -

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Last 60 days High Low

Cherat Papersack

115

2.59

72.04

75.40

68.50

72.76 0.72

193443

83.23

49.25

25B

ECOPACK Ltd

230

2.66

2.85

2.42

2.53 -0.13

131012

3.30

1.82

1067

4.83

53.75

54.00

52.01

52.55 -1.20

11819

56.45

45.30

10B

389

3.00

47 17.84

31.58

Company

Ghani Glass MACPAC Films Merit Pack Packages Ltd

844 65.66 137.43

52081

4.05

2.40

2010 Div BR (%) (%)

2011 Div BR (%) (%)

3.60

2.75

3.24 0.24

32.45

28.05

32.11 0.53

129534

32.45

17.10

139.90 126.38 128.03 -9.40

220100

143.00

103.52

Company

Paid up Cap(mn)

Company AL-Ghazi Tractor Bolan Casting

Paid up Cap(mn) 215

Open

5.74 235.07 43.75

High

Low

Close Chg

240.00 230.00 239.75

1.30

1.35

1.02

213 10.50

11.51

12.00

10.73

63.89

60.00

61.26 -0.57

Ghandhara Ind KSB Pumps

132

7.34

61.83

Millat Tractors XB

366

8.49 544.87

46.70

43.00

4.68

104

Dewan Auto Engineering 214

19866

2010 Div BR (%) (%)

203.22

150

42.90

10B

2011 Div BR (%) (%) -

5713

0.03

83226

2.40

0.21

70521

13.50

10.70

25B325.00

27539

72.55

58.55

181766

568.40

477.10

650

0.73

1.33

11.34 -0.17 6.53

0.36

Revenue (Rs in mn)

1.70

Interest Expense

1st Support

2.03

Profit after Taxation

2nd Support

1.83

EPS 10 (Rs)

1st Resistance

2.35

Book value / share (Rs)

2nd Resistance

2.47

PE 11 E (x)

Pivot

2.15

PBV (x)

18.51

20B

1,694.64 118.91 1,742.80 51.71 4.57 0.021 0.54 4.11

NICL closed up 0.48 at 2.21. Volume was 318 per cent above average (trending) and Bollinger Bands were 16 per cent wider than normal. The company's loss after taxation stood at Rs2.377 million which translates into a Loss Per Share of Rs0.01 for the 1st quarter of current fiscal year (1QFY11). NICL is currently 29.0 per cent above its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into NICL (mildly bullish). Trend forecasting oscillators are currently bearish on NICL.

Nishat Chunian Power Limited

42.25 4.95 8.70 6.00 2.52 32.01 21.35 11.90 72.20 68.00 53.79 4.01 22.58 10.11 3.78 3.00 2.50 2.16 9.10 52.67 39.00

Close Chg 42.99 5.55 9.40 6.01 2.79 33.61 22.23 12.30 76.95 69.25 55.06 4.63 23.36 10.25 4.05 3.30 2.90 2.16 9.50 53.53 41.00

-8.16 0.55 0.10 -0.54 -0.55 1.38 -0.47 0.30 2.97 0.25 -3.19 0.37 -1.64 -0.14 -0.95 0.13 0.10 -0.15 -0.17 -14.52 1.96

Close 1,819.97 Listed cap 11,335.33 mn Payout (%) 30.57

Volume

Change % Change -20.68 -1.12 Market cap 200-Day High 272,778.97 mn Div Yield (%) 200-Day Low 0.66 -

Last 60 days High Low

17691 54.00 7500 6.99 12783 15.47 31436 7.15 158840 5.59 5207 55.00 273918 36.50 54388 13.00 5304 81.12 42990 92.50 17754 68.49 30018 7.18 8060 27.30 20341 14.84 11566 6.99 124000 3.70 23500 3.85 6000 3.90 5324 13.50 11493 100.26 10516 42.52

42.25 4.05 8.70 5.00 1.50 28.00 21.35 11.50 68.60 68.00 52.60 4.01 17.51 9.00 3.78 2.02 2.50 2.11 9.00 52.67 29.03

2010 Div BR (%) (%)

2011 Div BR (%) (%)

50 10 25 25B 40 17.5 110R 7010B 12.5R 35 20B 7.50 10 12 10 10 -

Hussain Industries Pak Elektron Singer Pak Tariq Glass Ind

High Low 1,144.02 1,080.26 Total cos Defaulter cos P/BV (x) ROE (%) 0.34 10.64 Low

106 1219 3.57 341 22.47 231 2.67

6.32 14.26 19.35 21.27

7.09 14.60 20.00 24.00

4.60 13.73 18.35 21.80

Close Chg 6.88 14.18 20.00 22.30

0.56 -0.08 0.65 1.03

Close 1,112.44 Listed cap 3,763.71 mn Payout (%) 6.27

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

54.87

Total Assets (Rs in mn)

22,703.03

MA (10-day)

16.64

Total Equity (Rs in mn)

3,649.33

MA (100-day)

14.03

Revenue (Rs in mn)

MA (200-day)

11.95

Interest Expense

1st Support

16.60

Loss after Taxation

2nd Support

16.36

EPS 10 (Rs)

1st Resistance

17.04

Book value / share (Rs)

9.93

2nd Resistance

17.24

PE 11 E (x)

3.68

Pivot

16.80

PBV (x)

1.69

0.00 0.00 (7.76) (0.021)

NCPL closed down -0.20 at 16.77. Volume was 1 per cent below average and Bollinger Bands were 39 per cent narrower than normal. The company's profit after taxation stood at Rs418.858 million which translates into an Earning Per Share of Rs1.14 for the 1st quarter of current fiscal year (1QFY11). NCPL is currently 40.3 per cent above its 200-day moving average and is displaying a downward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of NCPL at a relatively equal pace. Trend forecasting oscillators are currently bearish on NCPL.

Pakistan Reinsurance Co Ltd

Volume 19834 562791 9985 929672

Change % Change 15.71 1.43 Market cap 200-Day High 5,266.47 mn Div Yield (%) 200-Day Low 1.97 -

Last 60 days High Low

2010 Div BR (%) (%)

11.49 15.88 20.79 24.00

17.5

4.60 13.10 17.55 15.90

10B -

2011 Div BR (%) (%) - 200R

PERSONAL GOODS Open 1,002.13 Turnover 80,411,024 P/E (x) 7.69 Company

Paid up Cap(mn)

(Colony) Thal Amtex Limited Artistic Denim Azgard Nine Babri Cotton Bannu Woolen XD Brothers Textile Chakwal Spinning Chenab Limited Colony Mills Ltd Crescent Jute Crescent Textile D S Ind Ltd Dawood Lawrencepur Dewan Farooque Spin. Dewan Khalid Textile Dewan Mushtaq Textile Din Textile Ellcot Spinning Gadoon Textile XD Gul Ahmed Textile Gulistan Spinning Gulistan Textile Gulshan Spinning Hira Textile Mills Ltd. Ibrahim Fibres Ideal Spinning Idrees Textile Ishaq Textile Janana D Mal Kohinoor Ind Kohinoor Textile Maqbool Textile Masood Textile Moonlite (PAK) Nishat (Chunian) Nishat Mills Pak Synthetic Paramount Spinning Ravi Textile Reliance Weaving Saif Textile Sally Textile Salman Noman Samin Textile Sargodha Spinning Service Ind Shadman Cot Shahtaj Textile Suraj Cotton Thal Limited Treet Corp Yousuf Weaving

56 2594 840 4493 33 76 98 400 1150 2442 238 492 600 514 600 57 34 204 110 234 635 146 190 222 716 3105 99 180 97 43 303 1455 168 600 22 1614 3516 560 174 250 308 264 88 42 267 312 120 176 97 180 307 418 400

Open

1.37 8.55 4.15 6.13 22.75 - 11.65 0.45 11.90 0.48 14.30 0.41 0.59 1.25 3.08 3.89 2.57 1.16 3.29 18.11 1.75 41.87 39.34 3.20 4.39 0.15 2.00 0.17 5.86 0.58 26.08 0.62 21.00 0.77 71.20 4.31 30.00 1.14 6.35 1.18 18.56 0.86 6.72 0.75 3.89 4.23 51.14 0.63 8.62 3.91 3.70 1.44 8.24 0.25 14.45 1.50 3.58 5.25 2.31 9.01 1.90 18.58 - 11.33 2.14 23.55 5.74 67.05 4.56 12.50 0.84 10.99 1.39 0.65 9.01 0.44 5.39 0.22 4.30 2.08 4.90 5.41 6.40 0.70 3.50 7.59 230.09 2.50 14.41 - 19.40 0.89 38.26 5.19 125.61 9.18 58.47 0.48 1.60

High

High Low 1,010.85 978.10 Total cos Defaulter cos P/BV (x) ROE (%) 0.66 8.64 Low

Close Chg

1.40 1.05 1.31 -0.06 4.20 3.65 3.76 -0.39 22.99 22.00 22.05 -0.70 11.95 10.60 11.28 -0.37 11.99 10.25 10.95 -0.95 15.10 13.50 13.76 -0.54 0.60 0.35 0.60 0.19 1.74 1.00 1.35 0.10 3.10 2.82 2.86 -0.22 2.64 2.11 2.49 -0.08 1.22 0.61 0.90 -0.26 18.11 16.86 17.10 -1.01 1.85 1.55 1.72 -0.03 40.00 35.05 35.59 -3.75 4.39 3.50 3.97 -0.42 2.00 1.65 1.99 -0.01 6.40 4.40 5.40 -0.46 28.20 26.58 27.00 0.92 21.00 20.00 20.36 -0.64 73.19 69.00 70.51 -0.69 30.00 27.11 30.00 0.00 7.19 5.55 5.96 -0.39 21.58 18.71 19.66 1.10 7.60 7.00 7.10 0.38 4.00 3.70 3.99 0.10 55.00 51.00 53.75 2.61 9.99 7.40 7.45 -1.17 3.60 3.45 3.60 -0.10 8.70 7.50 8.00 -0.24 15.49 14.06 14.99 0.54 1.70 0.75 1.50 0.00 5.29 4.81 5.01 -0.24 9.01 8.25 8.30 -0.71 19.50 18.05 18.05 -0.53 15.00 11.00 14.29 2.96 25.79 23.10 25.79 2.24 68.30 62.93 66.87 -0.18 13.62 12.51 13.50 1.00 11.98 9.25 11.50 0.51 1.58 0.65 1.35 -0.04 9.89 8.90 9.27 0.26 5.87 5.00 5.49 0.10 4.43 4.00 4.39 0.09 5.10 4.00 4.90 0.00 7.00 5.60 6.49 0.09 4.45 3.00 3.63 0.13 236.42 213.00 221.57 -8.52 15.25 12.81 13.70 -0.71 19.94 18.50 18.50 -0.90 40.00 37.50 39.50 1.24 127.99 118.00 121.53 -4.08 61.35 56.80 57.68 -0.79 1.60 1.16 1.38 -0.22

Close 990.01 Listed cap 47,070.70 mn Payout (%) 16.68

Volume

Change % Change -12.12 -1.21 Market cap 200-Day High 140,509.95 mn Div Yield (%) 200-Day Low 2.17 -

Last 60 days High Low

7226 1.50 1575109 5.28 18968 24.59 30470747 12.84 21603 16.00 88372 15.10 27735 1.49 25409 2.00 25840 3.90 19240 2.97 27259 1.38 33032 23.99 229354 2.10 120110 47.00 8834 8.00 7002 3.75 11026 8.90 86986 28.20 47840 21.78 43349 73.19 20631 33.19 172646 8.86 35490 28.27 9501 8.50 1490147 4.47 184763 55.00 617055 9.99 12001 3.90 7508 8.70 12966 18.00 57502 2.00 43756 5.97 15002 9.89 7688 20.74 12882 15.00 24747614 25.79 17027152 71.89 1409793 13.62 23516 11.98 108646 1.98 237282 10.34 40189 6.85 35113 4.89 10361 6.35 28148 7.00 31404 4.45 16263 276.50 12217 15.25 53482 20.29 6079 41.95 102887 132.00 487847 63.30 17744 2.00

2010 Div BR (%) (%)

0.56 3.65 30 19.10 20 9.20 8.10 - 15B 12.30 20 0.15 0.81 5 2.82 2.11 0.32 16.86 15 1.55 35.05 5 3.10 1.45 2.90 24.02 20 10B 18.51 35 45.00 70 24.00 12.5 5.10 10 18.00 10 6.30 10 20B 3.31 10 36.00 20 3.00 2.70 10 4.99 8 13.25 0.75 4.81 6.10 22.5 18.00 15 100R 4.50 21.15 15 51.70 25 45R 6.21 8.00 10 10B 0.65 8.50 25SD 3.90 3.57 10 2.01 5B 5.11 - 100R 1.51 5 169.00 7.00 16.35 45 31.50 50 95.10 80 20B 50.50 1.00 -

2011 Div BR (%) (%) -

Performance of SR Pharma and Bio Tech Index

44.48

553.85 531.00 551.40

46.75

50.50 5.55 10.47 6.79 3.75 35.17 22.50 12.50 79.00 72.40 57.90 5.50 24.20 11.25 4.59 3.70 3.00 2.70 10.25 64.65 42.00

Low

High

Open 920.74 Turnover 134,233 P/E (x) 6.60

Change % Change 11.30 0.71 Market cap 200-Day High 34,526.46 mn Div Yield (%) 200-Day Low 15.41 -

Last 60 days High Low 244.95

150

63.30

PHARMA AND BIO TECH

Close 1,597.08 Listed cap 1,336.62 mn Payout (%) 131.49

Volume

51.15 5.00 9.30 6.55 3.34 32.23 22.70 12.00 73.98 69.00 58.25 4.26 25.00 10.39 5.00 3.17 2.80 2.31 9.67 68.05 39.04

High

Open

INDUSTRIAL ENGINEERING High Low 1,607.26 1,543.08 Total cos Defaulter cos P/BV (x) ROE (%) 3.24 38.02

10.60 231.00

High Low 1,900.80 1,776.58 Total cos Defaulter cos P/BV (x) ROE (%) 14.01 30.30

Performance of SR Industrial Engineering Index Open 1,585.78 Turnover 393,951 P/E (x) 8.53

13.40

162696 309.73

Performance of SR Personal Goods Index

1828

982 12.92

Dandot Cement

Open

Close 944.70 Listed cap 54,792.74 mn Payout (%) 19.04

Open

Open 1,096.73 Turnover 1,522,419 P/E (x) 3.19

Performance of SR Construction and Materials Index High Low 988.27 918.38 Total cos Defaulter cos P/BV (x) ROE (%) 0.53 7.10

59101

Total Equity (Rs in mn)

1.61

MA (200-day)

HOUSEHOLD GOODS

CONSTRUCTION AND MATERIALS Open 970.47 Turnover 24,495,336 P/E (x) 7.40

10.88 -0.80

1.80

MA (100-day)

Performance of SR Household Goods Index

Last 60 days High Low

Volume

10.60

MA (10-day)

FOOD PRODUCERS

Performance of SR Industrial Metals and Mining Index High Low 1,063.37 1,011.09 Total cos Defaulter cos P/BV (x) ROE (%) 1.08 33.10

11.70

295.75 283.01 290.00 -3.50

Total Assets (Rs in mn)

Performance of SR Food Producers Index

INDUSTRIAL METALS AND MINING Open 1,048.95 Turnover 1,811,606 P/E (x) 3.25

11.68

6.62 293.50

63.65

3.08 6.75

23.50

12.61

24.50

450 200

16878

16.51

9.23 119.94

23.75

Ghandhara Nissan

23.35

14.79

7.10

598 20.66

Ghani Automobile Ind

11.99

22.15

15.53

120

23.50

214

22.99

1.20

150

20B

2.89

Sazgar Engineering

25B

100

15.00 96.00

450421

15 135

1.47

154.50

41.30 143.80

0.01

77.90

6.02

551 14.34

205.00

6067

2.11

77700

Sitara Chem Ind

51486 61615

2.25

1.78

65.39 -1.44

75.02

2.50

37.78 -0.19

2011 Div BR (%) (%)

2.19

137.00 131.28 135.00

63.30

151.55

12004

34.44

2010 Div BR (%) (%)

2.10

9.38 132.75

41.30

Last 60 days High Low

69.40

165.73

205.00 195.00 198.76 -1.26

Volume

66.83

4.24

177.80

Close Chg

786

213.30

8277976

Low

Change % Change -21.23 -1.64 Market cap 200-Day High 46,991.83 mn Div Yield (%) 200-Day Low 4.30 -

626 890

37.97

High

823 10.41

215.00

17956220 222.80

5.94 200.02

247 33.73

Atlas Honda Dewan Motors General Tyre

Open

Indus Motors

503226

101

Atlas Engineering Ltd

Close 1,271.70 Listed cap 6,768.53 mn Payout (%) 20.42

Pak Suzuki

187297 4929232

Paid up Cap(mn)

High Low 1,308.80 1,243.39 Total cos Defaulter cos P/BV (x) ROE (%) 1.20 25.35

15142

Sitara Peroxide Wah-Noble

41.19

3.11

Open 1,292.93 Turnover 1,027,546 P/E (x) 4.74

Atlas Battery

Close 1,604.98 Listed cap 52,251.88 mn Payout (%) 48.81

Paid up Cap(mn)

Dewan Salman

Performance of SR Automobile and Parts Index

Company

Performance of SR Chemicals Index

Agritech Limited

AUTOMOBILE AND PARTS

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

Company Abbott (Lab)

Paid up Cap(mn) 979

PE 8.35

Open 94.07

98.35

94.00

95.31

1.24

32679

112.50

94.00

20B

79.02

81.00

74.51

76.24 -2.78

26761

89.98

69.63

7.76

27.98

28.40

26.95

28.00

12467

30.48

24.15

9604

164.99

116.00

57701

69.00

58.70

62.29

160.00 150.00 153.50 -1.52 63.00

58.70

60.54 -1.75

6.72 13.71

5.44

82.20

2011 Div BR (%) (%)

250

12.21 155.02

94.90

2010 Div BR (%) (%)

165

0.02

7855

Last 60 days High Low

1707 96

89.00 -0.26

Volume

Ferozsons (Lab)

306

86.25

Close Chg

Change % Change -15.03 -1.63 Market cap 200-Day High 30,302.85 mn Div Yield (%) 200-Day Low 6.75 -

GlaxoSmithKline Sanofi-Aventis

90.50

Low

Close 905.71 Listed cap 3,904.20 mn Payout (%) 44.54

Highnoon (Lab) Searle Pak

89.26

High

High Low 933.65 889.65 Total cos Defaulter cos P/BV (x) ROE (%) 1.47 22.31

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

55.77

Total Assets (Rs in mn)

MA (10-day)

17.76

Total Equity (Rs in mn)

6,785.66

MA (100-day)

15.69

Revenue (Rs in mn)

2,170.95

MA (200-day)

17.00

Interest Expense

12,372.62

1st Support

17.40

Profit after Taxation

2nd Support

16.93

EPS 09 (Rs)

1st Resistance

18.37

Book value / share (Rs)

22.62

2nd Resistance

18.87

PE 10 E (x)

46.32

Pivot

17.90

PBV (x)

0.00 269.91 0.90

0.79

PAKRI closed down -0.02 at 17.91. Volume was 187 per cent above average (trending) and Bollinger Bands were 29 per cent wider than normal. The company's profit after taxation stood at Rs88.468 million which translates into an Earning Per Share of Rs0.29 for the nine months of current calendar year (9MCY10). PAKRI is currently 5.3 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into PAKRI (mildly bullish). Trend forecasting oscillators are currently bullish on PAKRI.

Karachi Electric Supply Corp Ltd

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

42.89

Total Assets (Rs in mn)

MA (10-day)

2.78

Total Equity (Rs in mn)

MA (100-day)

2.45

Revenue (Rs in mn)

MA (200-day)

2.44

Interest Expense

1st Support

2.61

Loss after Taxation

2nd Support

2.57

EPS 10 (Rs)

1st Resistance

2.74

Book value / share (Rs)

2nd Resistance

2.83

PE 11 E (x)

Pivot

2.70

PBV (x)

207,629.50 (525.11) 103,936.52 6,823.64 (14,641.22) (0.684) (0.02) (110.13)

KESC closed down -0.03 at 2.70. Volume was 93 per cent below average (consolidating) and Bollinger Bands were 32 per cent wider than normal. The company's loss after taxation stood at Rs1.782 billion which translates into a Loss Per Share of Rs0.09 for the 1st quarter of current fiscal year (1QFY11). KESC is currently 10.8 per cent above its 200-day moving average and is displaying a downward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of KESC at a relatively equal pace. Trend forecasting oscillators are currently bearish on KESC.

BOOK CLOSURES Company

From

First Cap Mutual Fund Shaheen Insurance Redeo Textiles # United Distributors # (TFC) Saudi Pak Leasing Dewan Farooque Motors # (TFC) Allied Bank (TFC) Pakarab Fertilizers Int. Ind (Consolidated) KASB Cash Fund Kohinoor Mills # Ideal Energy # Olympia Sp & Weaving Mills # Millat Tractors Shadman Cotton Mills Reliance Cotton Spng Mills # Mehran Sugar Mills Frontier Ceramics Int. Industries # Pakistan Oilfields Attock Petroleum (TFC) Searle Pakistan Pakistan Petroleum Pakistan Petroleum (Pref) Colgate - Palmolive # Tariq Glass Crescent Steel Fauji Fertiliser Bin Qasim Al-Noor Sugar Mills # Clarient Pakistan

07-Feb 07-Feb 07-Feb 08-Feb 10-Feb 14-Feb 14-Feb 15-Feb 16-Feb 16-Feb 17-Feb 18-Feb 18-Feb 18-Feb 19-Feb 19-Feb 21-Feb 21-Feb 22-Feb 24-Feb 24-Feb 03-Mar 03-Mar 04-Mar 07-Mar 09-Mar 15-Mar 16-Mar 18-Mar

14-Feb 14-Feb 14-Feb 14-Feb 21-Feb 27-Feb 28-Feb 24-Feb 24-Feb 26-Feb 26-Feb 24-Feb 26-Feb 26-Feb 28-Feb 28-Feb 01-Mar 04-Mar 09-Mar 09-Mar 09-Mar 10-Mar 13-Mar 15-Mar 21-Mar 26-Mar 25-Mar

D/B/R 25 (R) 15 (I) 325 (I) 5 7.5 (I) 100 (I) 115 (I) 50 (I) 30 (I) 200 (R) 10 (I) 35 (F) 135,25 (B)

INDICATIONS # Extraordinary General Meeting

Spot AGM/Date 28-Jan 08-Feb 09-Feb 10-Feb 10-Feb 11-Feb 15-Feb 23-Feb 25-Feb 01-Mar -

14-Feb 15-Feb 14-Feb 21-Feb 24-Feb 26-Feb 26-Feb 26-Feb 26-Feb 28-Feb 24-Feb 10-Mar 21-Mar 25-Mar 25-Mar

Monday, February 7, 2011

FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 1,131.76 Turnover 23,545,163 P/E (x) 6.04 Paid up Cap(mn)

Company

High Low 1,159.15 1,076.91 Total cos Defaulter cos P/BV (x) ROE (%) 0.78 12.84

Close 1,112.45 Listed cap 50,077.79 mn Payout (%) 62.56

Open

High

Low

Close Chg

Volume

Pakistan Telecomm Co A 37740 12.59 Telecard 3000 0.61 WorldCall Tele 8606 -

19.19 2.15 2.72

19.60 2.22 2.90

18.19 2.01 2.56

18.89 -0.30 2.06 -0.09 2.65 -0.07

17877049 1012689 4654361

Change % Change -19.31 -1.71 Market cap 200-Day High 77,000.75 mn Div Yield (%) 200-Day Low 10.36 -

Last 60 days High Low

2010 Div BR (%) (%)

20.65 2.67 3.45

17.5 1 -

18.19 2.01 2.41

2011 Div BR (%) (%)

Ask Gen Insurance Atlas Insurance Central Insurance XB Century Insurance EFU General Insurance Habib Insurance IGI Insurance New Jub Insurance Pak Reinsurance PICIC Ins Ltd Premier Insurance Universal Insurance

204 6.60 369 5.95 279 7.90 457 6.68 1250 400 3.21 718 17.17 791 15.74 3000 45.92 350 303 6.32 263 -

Paid up Cap(mn)

Open

High

Low

Genertech 198 Hub Power 11572 7.24 Japan Power 1560 KESC 7932 Kohinoor Power 126 2.59 Kot Addu Power 8803 5.23 Nishat Chunian Power Ltd 3673 3.68 Nishat Power Ltd 3541 28.73 Sitara Energy Ltd 191 3.18 Southern Electric 1367 -

Company

0.85 39.00 1.70 2.73 4.59 43.02 16.97 17.81 18.10 2.24

0.89 40.20 1.79 2.85 4.70 43.60 17.25 18.09 17.67 2.29

0.67 37.10 1.55 2.56 4.00 41.75 15.72 16.67 16.50 2.05

Close 1,350.66 Listed cap 95,369.29 mn Payout (%) 104.13

Change % Change 10.14 0.76 Market cap 200-Day High 110,278.22 mn Div Yield (%) 200-Day Low 7.08 -

Close Chg

Volume

Last 60 days High Low

0.72 39.52 1.59 2.70 4.25 43.04 16.77 17.81 17.03 2.15

92170 12383035 712833 2806258 22535 2249406 7574307 6385285 63500 618944

1.18 41.20 2.15 3.55 5.39 45.85 18.01 18.70 19.35 2.80

-0.13 0.52 -0.11 -0.03 -0.34 0.02 -0.20 0.00 -1.07 -0.09

0.67 33.40 1.50 2.10 3.85 39.00 13.32 14.25 16.50 2.05

2010 Div BR (%) (%) 50 50 20 -

2011 Div BR (%) (%)

7.8R -

Open 816.00 Turnover 151,453 P/E (x) 5.53

Open 1,587.05 Turnover 11,132,175 P/E (x) 10.41 Company Sui North Gas Sui South Gas

High Low 1,660.45 1,508.49 Total cos Defaulter cos P/BV (x) ROE (%) 1.19 11.41

Close 1,643.21 Listed cap 12,202.80 mn Payout (%) 66.79

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

5491 8390

8.01 3.75

27.72 22.28

27.80 25.00

25.75 21.41

26.90 -0.82 24.91 2.63

792863 34.75 10339312 25.01

Change % Change 56.16 3.54 Market cap 200-Day High 35,669.63 mn Div Yield (%) 200-Day Low 6.42 -

Last 60 days High Low 25.71 19.95

2010 Div BR (%) (%) 20 15

2011 Div BR (%) (%)

25B

BANKS Performance of SR Banks Index Open 1,201.36 Turnover 68,305,624 P/E (x) 8.43 Paid up Cap(mn)

Company

Open

Allied Bank Limited 7821 7.08 72.26 Askari Bank 6427 8.19 18.46 Bank Alfalah 13492 14.58 11.72 Bank AL-Habib 7322 7.78 37.50 Bank Of Khyber 5004 5.33 4.09 Bank Of Punjab 5288 8.95 BankIslami Pak 5280 957.50 3.86 Faysal Bank 7327 4.60 15.05 Habib Bank Ltd 10019 7.77 123.82 Habib Metropolitan Bank 8732 7.94 26.52 JS Bank Ltd 8150 2.37 KASB Bank Ltd 9509 1.67 MCB Bank Ltd 7602 10.19 233.43 Meezan Bank 6983 9.87 18.53 Mybank Ltd 5304 2.83 National Bank 13455 6.77 77.86 NIB Bank 40437 2.87 Samba Bank 14335 1.76 Silkbank Ltd 26716 2.59 Soneri Bank 6023 7.30 Stand Chart Bank 38716 11.54 7.81 United Bank Ltd 12242 7.90 68.80

High

High Low Close 1,223.61 1,144.27 1,178.22 Total cos Defaulter cos Listed cap - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.18 13.94 40.49 Low

Close Chg

73.37 69.00 72.82 0.56 18.70 16.20 17.20 -1.26 11.99 11.10 11.37 -0.35 37.90 36.00 36.11 -1.39 4.10 3.81 4.00 -0.09 9.17 7.98 8.36 -0.59 4.08 3.66 3.83 -0.03 15.45 13.55 14.27 -0.78 126.45 120.75 124.37 0.55 27.10 25.41 25.95 -0.57 2.50 2.30 2.42 0.05 1.80 1.62 1.66 -0.01 237.60 221.50 229.83 -3.60 19.00 18.40 18.65 0.12 2.95 2.50 2.57 -0.26 78.85 75.47 77.52 -0.34 2.99 2.63 2.74 -0.13 2.00 1.75 1.94 0.18 2.64 2.45 2.48 -0.11 7.70 6.80 6.92 -0.38 8.00 7.07 7.50 -0.31 69.95 64.75 67.24 -1.56

1245613 5346338 6663267 2251997 63569 17064727 362755 1712515 1505640 73371 626417 884674 5564195 101681 679013 9520751 5614867 431014 4295594 336118 49754 3911753

Change % Change -23.14 -1.93 Market cap 200-Day High 711,616.57 mn Div Yield (%) 200-Day Low 4.80 -

Last 60 days High Low

Volume

74.00 19.25 11.99 39.49 4.70 10.59 4.50 17.10 128.97 29.28 3.00 2.80 250.48 20.30 3.40 80.61 3.35 2.17 3.05 8.48 9.04 70.65

55.60 15.30 9.48 31.50 3.62 7.98 3.00 13.55 102.55 20.11 2.30 1.49 199.00 14.52 1.90 65.11 2.63 1.70 2.45 6.80 6.40 56.89

2010 Div BR (%) (%) 20 - 20B - 66R 55 -63.46R 10 -

NON LIFE INSURANCE

Paid up Cap(mn)

Company Adamjee Insurance

High Low 814.39 753.24 Total cos Defaulter cos P/BV (x) ROE (%) 0.65 5.20

Close 792.74 Listed cap 11,111.34 mn Payout (%) 79.54

Open

EFU Life Assurance

850 35.86

68.05

New Jub Life Insurance

627 29.50

45.00

Change % Change -10.67 -1.33 Market cap 200-Day High 48,618.78 mn Div Yield (%) 200-Day Low 6.39 -

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1237 26.46

95.02

96.40

87.00

91.30 -3.72

2472541

96.40

74.18

2010 Div BR (%) (%) 10

2011 Div BR (%) (%)

10.89 37.45 69.49 10.68 41.08 13.50 92.53 58.41 17.91 9.00 11.70 2.50

-0.30 0.07 -3.59 0.32 0.94 -0.39 1.45 -1.07 -0.02 0.01 0.21 -0.25

24341 28457 11404 85040 744125 30436 26597 29473 4299814 20418 38699 7409

12.75 40.00 83.00 12.00 47.90 15.50 99.88 61.80 19.40 10.75 12.93 4.00

10.00 33.11 54.10 9.65 38.50 11.01 81.10 55.08 15.36 2.75 9.30 2.21

10 10 -

25R 10B 20B -

UP TO 5000 VOLUME

Symbols SANSM TATM KOHE AZAMT SALT ARM SKFL SHTM BILF RUPL ADOS DSML RICL AGIL NATF MUKT HMIM TRPOL SAPT PRWM MFFL PPP FCONM PKGI UNIC EXIDE DYNO KOHS SHNI KSTM MIRKS SSIC PAKMI ZTL KML KOHTM PMRS ALICO BAPL OTSU AKDCL NESTLE ADAMS IDYM BGL FTSM SNAI SMCPL BFMOD STCL BWHL BATA COLG JUBS FIBLM FZTM MUBT SUTM APOT SGML PAKD HINO JKSM WAZIR AATM ASTM GOEM OLTM ASFL LIBM GFIL MLCFPS BUXL BIFO PECO DADX FPRM KOSM GWLC ULEVER EMCO NPSM ALTN TREI CLCPS QUAT FRSM ARUJ GAMON PAKT GATI PIAB ICL FECM CLOV BTL MUCL MEHT FPJM RMPL SIEM CSIL GLPL FZCM FANM LEUL CPMFI TSPL MTIL HAJT OLSM IDEN HUSS WYETH TOWL FNEL AASM STML PGCL TICL NATM MSCL DIIL ZAHT KCL AABS ICCT PAKL PRET THAS RCML SJTM PSEL MFTM

High Low 829.40 752.52 Total cos Defaulter cos P/BV (x) ROE (%) 3.41 3.85

Close 773.50 Listed cap 2,290.72 mn Payout (%) 355.53

Change % Change -42.50 -5.21 Market cap 200-Day High 9,109.00 mn Div Yield (%) 200-Day Low 4.02 -

High

Low

Close Chg

Volume

Last 60 days High Low

2010 Div BR (%) (%)

2011 Div BR (%) (%)

69.00

62.68

63.12 -4.93

99087

86.95

62.68

46.25

40.51

43.95 -1.05

17413

49.31

40.00

FINANCIAL SERVICES Performance of SR Financial Services Index Open 415.21 Turnover 20,731,394 P/E (x) 11.76 Paid up Cap(mn)

AMZ Ventures Arif Habib Limited Dawood Cap Mangt. XB Dawood Equities Escorts Bank Grays Leasing IGI Investment Bank Invest and Fin Sec Invest Bank Ist Cap Securities Ist Dawood Bank Jah Siddiq Co JOV and CO JS Global Cap JS Investment Orix Leasing Pervez Ahmed Sec Saudi Pak Leasing Stand Chart Leasing Trust Brokerage Trust Inv Bank

High Low 427.93 382.40 Total cos Defaulter cos P/BV (x) ROE (%) 0.27 0.91

Open

High

Low

225 1.43 450 13.02 150 1.25 250 441 215 2121 14.69 600 751.00 2849 3166 626 0.60 7633 508 500 7.11 1000 27.79 821 4.49 775 452 978 5.50 100 586 1.94

0.74 26.03 1.50 1.90 2.29 1.46 2.75 7.33 0.68 3.25 1.65 11.73 3.82 26.63 6.76 6.26 1.91 0.50 2.68 3.50 1.62

0.84 26.60 1.90 2.27 2.99 3.00 2.75 8.00 0.80 3.49 1.80 12.05 4.07 27.95 6.97 6.55 2.04 0.79 2.68 3.95 2.00

0.58 24.92 1.25 1.61 2.00 1.22 2.26 7.21 0.46 3.00 1.60 10.54 3.51 25.00 6.40 6.11 1.84 0.47 2.40 3.01 1.24

Close Chg 0.63 25.51 1.40 1.81 2.35 2.95 2.35 7.51 0.65 3.13 1.68 11.59 3.56 26.44 6.67 6.11 1.88 0.74 2.64 3.02 1.24

-0.11 -0.52 -0.10 -0.09 0.06 1.49 -0.40 0.18 -0.03 -0.12 0.03 -0.14 -0.26 -0.19 -0.09 -0.15 -0.03 0.24 -0.04 -0.48 -0.38

Close 409.09 Listed cap 30,336.44 mn Payout (%) 99.56

Volume 304287 364677 43350 176777 6714 14754 10008 92120 73404 211860 139432 16285370 1022652 62506 520083 18419 350311 106652 35020 13195 143995

Change % Change -6.12 -1.47 Market cap 200-Day High 18,959.02 mn Div Yield (%) 200-Day Low 3.35 -

Last 60 days High Low

2010 Div BR (%) (%)

0.95 28.00 2.14 2.75 3.80 3.00 3.90 8.98 1.09 3.96 2.14 14.05 4.78 32.37 7.59 7.29 2.69 0.97 3.00 4.00 2.98

11.5 10 -

0.33 24.61 1.15 1.28 1.90 0.18 2.17 6.22 0.46 2.95 1.05 10.10 3.51 25.00 6.17 5.51 1.84 0.41 2.26 1.42 1.24

20B 10B -

2011 Div BR (%) (%) -

EQUITY INVESTMENT INSTRUMENTS

2011 Div BR (%) (%)

Performance of SR Non Life Insurance Index Open 803.40 Turnover 7,831,918 P/E (x) 12.46

Company

GAS WATER AND MULTIUTILITIES

Paid up Cap(mn)

Company

Performance of SR Gas Water and Multiutilities Index

10.01 36.31 68.00 10.00 38.50 13.06 88.11 57.00 16.40 8.02 10.10 2.50

Performance of SR Life Insurance Index

ELECTRICITY High Low 1,374.59 1,279.72 Total cos Defaulter cos P/BV (x) ROE (%) 1.37 9.35

11.40 37.55 72.00 11.28 41.97 13.80 94.95 60.00 18.40 9.00 12.39 3.25

LIFE INSURANCE

Performance of SR Electricity Index Open 1,340.52 Turnover 32,913,172 P/E (x) 14.70

11.19 37.38 73.08 10.36 40.14 13.89 91.08 59.48 17.93 8.99 11.49 2.75

Performance of SR Equity Investment Instruments Index Open 1,400.58 Turnover 17,901,612 P/E (x) 19.52 Company

Paid up Cap(mn)

1st Fid Leasing AL-Meezan Mutual F. Atlas Fund of Funds B R R Guardian Mod. Crescent St Modaraba Equity Modaraba First Dawood Mutual F. Golden Arrow H B L Modaraba Habib Modaraba JS Growth Fund JS Value Fund KASB Modaraba Meezan Balanced Fund Mod Al-Mali NAMCO Balanced Fund Nat Bank Modaraba PICIC Energy Fund PICIC Growth Fund PICIC Inv Fund Prud Modaraba 1st Safeway Mutual Fund Stand Chart Modaraba Tri-Star Mutual Trust Modaraba U D L Modaraba

High Low 1,452.66 1,313.14 Total cos Defaulter cos P/BV (x) ROE (%) 0.43 2.21

Open

High

Low

264 9.50 1375 8.29 525 1.94 780 3.50 200 1.78 524 11.56 581 0.60 760 2.34 397 2.72 1008 6.01 3180 71.00 1186 1.35 283 2.07 1200 2.60 184 17.50 1000 6.25 250 5.56 1000 2.10 2835 9.29 2841 7.52 872 2.27 545 7.89 454 4.67 50 3.19 298 3.85 264 1.78

1.50 8.87 4.50 1.56 0.71 1.88 2.24 3.34 7.88 7.00 5.78 5.94 2.84 7.74 1.50 3.60 6.21 7.12 14.50 6.50 1.00 8.37 9.52 1.41 1.85 6.10

2.34 10.30 4.80 1.75 0.75 2.25 2.29 3.39 8.20 7.19 5.84 6.20 3.00 9.25 1.79 4.24 6.25 7.40 14.75 6.70 1.09 9.00 10.19 1.79 2.00 6.28

1.16 8.70 4.50 1.30 0.52 1.75 1.89 3.00 7.25 6.95 4.65 5.20 2.01 7.65 1.30 2.92 5.99 6.70 13.46 5.90 1.00 6.87 9.50 0.60 1.51 6.10

Close 1,425.90 Listed cap 29,771.58 mn Payout (%) 104.74

Change % Change 25.33 1.81 Market cap 200-Day High 19,278.77 mn Div Yield (%) 200-Day Low 8.34 -

Close Chg

Volume

Last 60 days High Low

2010 Div BR (%) (%)

1.52 9.95 4.80 1.54 0.71 1.85 1.89 3.28 8.15 6.97 5.68 5.61 2.81 9.05 1.75 4.00 6.00 7.21 14.50 6.62 1.00 7.89 9.52 1.15 2.00 6.25

62967 3451008 182901 62219 55466 357811 55941 627552 9517 264613 1125796 2548453 210228 3708310 29253 2131826 26000 562248 1426859 719672 61293 97284 43684 16564 8101 40605

2.34 10.30 5.47 2.79 0.87 2.98 2.39 3.60 9.00 7.30 6.10 6.20 3.50 9.25 2.50 4.24 7.74 7.80 15.06 7.14 1.20 9.00 10.29 2.00 2.30 6.55

18.5 2.2 0 1.2 17 11 21 5 10 2.8 15.5 15 10 10 20 10 3 18.2 17 5 12.5

0.02 1.08 0.30 -0.02 0.00 -0.03 -0.35 -0.06 0.27 -0.03 -0.10 -0.33 -0.03 1.31 0.25 0.40 -0.21 0.09 0.00 0.12 0.00 -0.48 0.00 -0.26 0.15 0.15

1.16 6.15 3.11 1.20 0.16 1.06 1.61 2.56 6.13 6.00 2.99 2.76 1.26 5.15 0.92 2.71 4.50 5.31 8.50 4.00 0.81 5.01 8.51 0.60 1.15 5.30

2011 Div BR (%) (%) -

Open 12.40 36.25 18.90 2.61 64.28 15.35 1.20 0.27 1.63 37.99 17.69 3.23 6.60 74.14 56.76 0.32 0.92 0.53 109.00 13.80 83.00 43.01 1.98 8.74 7.50 198.99 10.99 3.90 11.10 0.56 48.87 7.20 1.28 3.50 3.10 0.85 42.99 17.00 8.48 35.50 45.38 3293.75 16.00 234.95 2.70 1.45 42.00 7.43 3.40 8.23 35.80 630.82 977.47 4.19 2.01 421.08 1.00 33.80 6.50 5.67 79.90 131.00 6.05 7.30 1.10 2.50 12.50 1.90 3.00 69.50 3.51 4.33 12.00 44.01 155.41 21.34 8.50 1.01 6.50 4546.28 2.98 24.00 10.65 1.95 2.98 13.10 17.90 5.00 2.25 113.98 49.00 8.00 25.52 2.75 64.02 57.25 14.50 65.25 1.88 2320.00 1135.00 5.70 58.50 66.50 3.05 1.70 3.50 0.86 0.50 0.50 1.51 15.00 10.40 1028.00 7.50 6.01 28.32 23.00 25.95 51.39 14.00 14.43 11.00 4.00 7.00 102.25 1.23 2.00 31.99 3.90 40.85 0.21 180.00 1.14

High 12.35 40.50 19.10 3.00 69.24 16.00 1.20 0.48 1.75 38.89 16.90 3.54 6.61 74.89 59.69 0.72 0.90 0.91 111.00 15.00 85.70 44.80 1.99 8.74 7.50 207.90 11.50 4.00 11.10 0.74 51.18 7.50 1.49 4.39 3.59 2.50 41.53 17.50 8.26 34.00 46.70 3570.00 16.50 262.52 2.88 1.45 43.50 7.50 3.40 8.89 37.59 659.00 976.00 4.19 2.72 454.50 1.30 35.49 5.75 5.99 79.89 135.45 6.80 7.98 1.00 1.50 12.50 1.90 4.00 72.95 4.50 4.51 12.00 44.25 155.01 22.00 8.80 1.72 7.15 4699.93 2.95 25.00 11.40 2.00 2.98 13.10 18.25 5.00 1.30 115.00 50.99 7.00 27.69 3.05 63.10 61.50 14.50 65.00 1.49 2467.50 1115.00 6.30 62.50 65.45 3.39 1.90 4.00 0.99 0.70 0.68 1.70 15.25 11.30 1028.00 11.96 7.32 28.32 23.00 25.00 62.38 16.00 14.10 13.90 4.88 7.10 102.89 1.45 2.85 31.80 5.50 43.00 1.00 179.98 1.22

Low

11.60 36.80 18.10 2.10 60.80 15.00 1.00 0.21 1.25 37.01 15.52 1.20 6.60 70.10 54.11 0.18 0.50 0.43 109.00 13.50 76.00 40.30 1.00 7.20 6.70 195.00 10.06 3.80 10.05 0.25 44.13 6.61 1.00 3.40 2.00 0.85 38.50 17.00 7.35 32.60 42.51 3310.00 14.10 223.95 2.25 0.70 42.50 6.20 3.31 7.37 31.35 610.00 924.00 3.20 1.25 410.00 1.00 33.80 4.50 4.64 78.14 118.75 5.80 7.01 0.61 1.50 12.00 1.00 3.00 67.00 3.01 4.01 9.70 41.11 142.00 22.00 8.80 0.80 6.01 4250.00 2.47 24.00 10.00 1.87 2.45 12.25 17.40 4.25 1.29 108.01 44.50 3.10 24.60 2.80 59.87 57.51 10.50 61.75 1.40 2204.13 1075.00 4.00 58.19 59.38 3.20 1.01 3.50 0.70 0.25 0.49 1.51 14.90 9.40 977.76 8.40 5.31 25.75 23.00 22.66 53.95 14.00 13.00 10.95 2.74 6.80 93.10 1.23 2.00 30.23 4.50 41.00 0.25 170.99 0.85

12.01 40.50 18.18 2.50 69.24 16.00 1.19 0.30 1.75 38.39 16.43 1.20 6.61 71.10 56.00 0.46 0.87 0.53 111.00 13.50 79.00 42.40 1.21 7.98 6.74 197.00 11.00 3.80 10.99 0.74 50.69 7.34 1.08 3.98 2.48 1.50 41.53 17.50 8.21 33.00 44.55 3405.44 15.50 262.49 2.66 1.24 43.50 6.81 3.31 8.76 32.50 642.11 960.00 3.20 1.52 420.00 1.30 33.85 5.75 4.81 78.99 122.21 6.80 7.01 0.61 1.50 12.00 1.00 3.50 67.01 3.90 4.17 11.61 44.20 144.33 22.00 8.80 1.40 6.98 4385.65 2.85 25.00 11.40 2.00 2.45 12.25 17.98 4.50 1.29 113.98 46.74 3.11 26.32 3.00 62.49 58.02 12.48 61.75 1.40 2420.30 1091.06 4.63 58.19 59.68 3.35 1.01 3.50 0.97 0.47 0.49 1.70 14.90 11.29 999.99 10.01 7.07 27.25 23.00 22.85 62.38 15.00 13.00 11.91 2.74 7.10 97.87 1.42 2.85 30.25 5.40 41.00 0.32 171.00 1.19

Change

Vol

-0.39 4.25 -0.72 -0.11 4.96 0.65 -0.01 0.03 0.12 0.40 -1.26 -2.03 0.01 -3.04 -0.76 0.14 -0.05 0.00 2.00 -0.30 -4.00 -0.61 -0.77 -0.76 -0.76 -1.99 0.01 -0.10 -0.11 0.18 1.82 0.14 -0.20 0.48 -0.62 0.65 -1.46 0.50 -0.27 -2.50 -0.83 111.69 -0.50 27.54 -0.04 -0.21 1.50 -0.62 -0.09 0.53 -3.30 11.29 -17.47 -0.99 -0.49 -1.08 0.30 0.05 -0.75 -0.86 -0.91 -8.79 0.75 -0.29 -0.49 -1.00 -0.50 -0.90 0.50 -2.49 0.39 -0.16 -0.39 0.19 -11.08 0.66 0.30 0.39 0.48 -160.63 -0.13 1.00 0.75 0.05 -0.53 -0.85 0.08 -0.50 -0.96 0.00 -2.26 -4.89 0.80 0.25 -1.53 0.77 -2.02 -3.50 -0.48 100.30 -43.94 -1.07 -0.31 -6.82 0.30 -0.69 0.00 0.11 -0.03 -0.01 0.19 -0.10 0.89 -28.01 2.51 1.06 -1.07 0.00 -3.10 10.99 1.00 -1.43 0.91 -1.26 0.10 -4.38 0.19 0.85 -1.74 1.50 0.15 0.11 -9.00 0.05

4683 4517 4185 4068 4012 4001 4000 3800 3745 3692 3530 3515 3500 3296 3186 3028 3021 2993 2972 2809 2761 2742 2723 2700 2619 2368 2348 2300 2172 2148 2108 2043 2030 2027 2017 2006 2001 2000 1952 1950 1911 1850 1760 1746 1707 1703 1680 1640 1504 1478 1424 1383 1300 1300 1183 1169 1130 1110 1101 1094 1064 1063 1009 1001 1000 1000 1000 1000 1000 930 900 853 812 785 726 721 651 627 602 593 514 511 502 501 500 500 452 425 420 416 396 369 334 273 253 216 208 180 152 150 141 128 115 111 111 110 110 109 108 101 100 100 74 66 61 57 52 38 28 27 25 24 24 24 20 20 20 20 20 15 14 12 12 11

BOARD MEETINGS

Fauji Fertiliser Bin Qasim Ltd

KSE 100 INDEX

Pakistan Telecommunication Co Ltd

Engro Corporation

Company

Date

Time

Ansari Sugar Mills Ltd BankIslami Pakistan Ltd Habib ADM Limited Engro Polymer & Chemicals Ltd Tandlianwala Sugar Mills Pak Int Cont Ter Ltd Zeal-Pak Cement Ltd NI(U)T Fund NIT Government Bond Fund NIT Income Fund Pakistan State Oil Co. Ltd

07-Feb 07-Feb 07-Feb 07-Feb 07-Feb 07-Feb 07-Feb 08-Feb 08-Feb 08-Feb 09-Feb

10:00 4:00 10:30 9:30 5:00 12:00 3:00 12:00 12:00 12:00 10:00

TECHNICAL LEVELS Company

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position

Fair Value

*Invest Cap

AKD Securities Ltd

45.52

TFD Research

44.25

57.98

Support 1

12,358.75

MA (5-day)

12,329.91

Support 2

12,302.15

MA (10-day)

12,389.89

Resistance 1

12,457.25

MA (100-day)

11,202.64

Resistance 2

12,499.15

Technical Analysis

MA (200-day)

10,575.57

Pivot

12,400.65

RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Mean Median

KSE 100 INDEX closed down -47.35 points at 12,415.35. Volume was 39 per cent below average and Bollinger Bands were 37 per cent narrower than normal. As far as resistance level is concern, the market will see major 1st resistance level at 12,457.25 and 2nd resistance level at 12,499.15, while Index will continue to find its 1st support level at 12,358.75 and 2nd support level at 12,302.15. KSE 100 INDEX is currently 17.4 per cent above its 200-day moving average and is displaying a downward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of INDEX at a relatively equal pace. Trend forecasting oscillators are currently bearish on INDEX.

Brokerage House

Fair Value 77

AKD Securities Ltd

71.45

TFD Research

78.6

53.54 66.05 57.27 52.65 65.77 65.62

Hold

*Invest Cap

Accumulate

AKD Securities Ltd

229.9

TFD Research

245.4

Neutral

210

Brokerage House

Hold

*Invest Cap

Neutral

AKD Securities Ltd

Free Float Shares (mn) 326.94 Free Float Rs (mn) 13,522.18 CFS Shares (mn) N/A CFS Rs (mn) N/A CFS Rate N/A ** NOI Rs (mn) 77.08

RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Mean Median

Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)

Rs Recommendations

Buy

23.91

Buy

25.8

Positive

Technical Outlook

Leverage Position

69.49 214.24 188.42 186.34 216.30 216.60

Fair Value

TFD Research

Positive

Technical Analysis

147.48 32,600.80 N/A N/A N/A 180.86

Technical Analysis RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Mean Median

Leverage Position

42.86 19.01 19.19 19.27 18.76 18.90

Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)

* Target price for Jun-11 & **Net Open Interest in future market

ENGRO closed up 8.98 at 221.05. Volume was 63 per cent above average and Bollinger Bands were 4 per cent wider than normal. ENGRO is currently 18.7 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into ENGRO (mildly bullish). Trend forecasting oscillators are currently bullish on ENGRO.

PTC closed down -0.30 at 18.89. Volume was 65 per cent below average (consolidating) and Bollinger Bands were 50 per cent wider than normal. PTC is currently 1.9 per cent below its 200-day moving average and is displaying a downward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of PTC at a relatively equal pace. Trend forecasting oscillators are currently bearish on PTC.

Brokerage House

Fair Value

Pakistan Oilfields Ltd

Hub Power Co Ltd

Rs Recommendations

Brokerage House

Fair Value

Rs Recommendations

Brokerage House

Fair Value

Rs Recommendations

Buy

*Invest Cap

149

Hold

*Invest Cap

Buy

*Invest Cap

Accumulate

AKD Securities Ltd

145

Neutral

AKD Securities Ltd

42.1

Accumulate

AKD Securities Ltd

322.42

Neutral

Positive

TFD Research

139.5

Neutral

TFD Research

50.3

Positive

TFD Research

381.35

Positive

Technical Outlook

Leverage Position Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)

175.80 11,755.74 N/A N/A N/A 68.25

585.02 11,051.10 N/A N/A N/A 7.57

* Target price for Jun-11 & **Net Open Interest in future market

Fauji Fertiliser Co

Rs Recommendations

Technical Outlook

Leverage Position

60.89 41.13 33.83 31.06 40.92 40.93

Fair Value

FFBL closed up 0.17 at 41.36. Volume was 28 per cent below average and Bollinger Bands were 7 per cent wider than normal. FFBL is currently 33.2 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into FFBL (mildly bullish). Trend forecasting oscillators are currently bullish on FFBL.

Technical Outlook Technical Analysis RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Mean Median

Brokerage House

Technical Outlook

Nishat Mills Ltd

*Invest Cap

Rs Recommendations

Technical Analysis RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Mean Median

63.23 151.94 119.05 113.52 150.01 150.00

373.19 56,120.30 N/A N/A N/A 61.03

Technical Analysis RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Mean Median

57.97 38.59 35.77 34.98 38.42 38.65

Leverage Position Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)

360

Hold

Technical Outlook

Leverage Position Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)

810.01 32,011.52 N/A N/A N/A 0.98

Technical Analysis RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Mean Median

64.69 327.85 273.70 249.80 327.86 329.42

Leverage Position Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)

107.94 35,813.32 N/A N/A N/A 735.44

* Target price for Jun-11 & **Net Open Interest in future market

NML closed down -0.18 at 66.87. Volume was 60 per cent below average (consolidating) and Bollinger Bands were 9 per cent narrower than normal. NML is currently 27.0 per cent above its 200-day moving average and is displaying a downward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of NML at a relatively equal pace. Trend forecasting oscillators are currently bearish on NML.

FFC closed down -2.39 at 150.38. Volume was 87 per cent above average and Bollinger Bands were 101 per cent wider than normal. FFC is currently 32.4 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into FFC (mildly bullish). Trend forecasting oscillators are currently bullish on FFC.

HUBC closed up 0.52 at 39.52. Volume was 27 per cent below average and Bollinger Bands were 10 per cent wider than normal. HUBC is currently 13.0 per cent above its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of HUBC at a relatively equal pace. Trend forecasting oscillators are currently bearish on HUBC.

POL closed up 2.87 at 331.78. Volume was 26 per cent below average and Bollinger Bands were 52 per cent narrower than normal. POL is currently 32.8 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of POL at a relatively equal pace. Trend forecasting oscillators are currently bullish on POL.

Al-Abbas Cement Allied Bank Limited Attock Cement Arif Habib Corp Arif Habib Limited Adamjee Insurance Askari Bank Azgard Nine Attock Petroleum Attock Refinery Bank Al-Falah BankIslami Pak Bank.Of.Punjab Dewan Cement D.G.K.Cement Dewan Salman Dost Steels Ltd EFU General Insurance EFU Life Assurance Engro Chemical Faysal Bank Fauji Cement Fauji Fert Bin Fauji Fertilizer Habib Bank Ltd Hub Power ICI Pakistan J.O.V.and CO Japan Power JS Bank Ltd Jah Siddiq Co Kot Addu Power K.E.S.C Lotte Pakistan Lucky Cement MCB Bank Ltd Maple Leaf Cement National Bank Nishat (Chunian) Netsol Technologies NIB Bank Nimir Ind.Chemical Nishat Mills Oil & Gas Dev. XD PACE (Pakistan) Ltd. Pervez Ahmed Sec P.I.A.C.(A) Pioneer Cement Pak Oilfields Pak Petroleum Pak Suzuki P.S.O. XD P.T.C.L.A Shell Pakistan Sui North Gas Sitara Peroxide Sui South Gas Telecard TRG Pakistan United Bank Ltd WorldCall Tele

RSI 1st 2nd (14-day) Support 40.75 2.90 2.80 60.11 71.95 71.05 11.93 51.35 50.75 48.56 25.70 25.40 43.52 25.40 25.25 51.73 90.50 89.65 43.01 17.05 16.85 54.62 11.15 11.00 64.82 382.50 377.60 37.11 120.20 119.35 53.27 11.25 11.20 50.04 3.75 3.60 30.97 8.10 7.85 38.95 1.80 1.70 44.84 28.95 28.75 47.96 2.85 2.80 42.10 2.45 2.35 46.13 39.75 38.40 23.99 62.30 61.45 69.49 219.35 217.70 40.23 14.15 14.05 34.26 4.55 4.50 60.89 41.05 40.75 63.23 149.10 147.85 56.15 123.30 122.20 57.97 38.75 37.95 48.08 143.20 140.60 35.58 3.45 3.35 41.97 1.55 1.50 45.89 2.35 2.30 44.21 11.35 11.15 51.90 42.35 41.65 42.89 2.65 2.60 66.36 16.00 15.65 41.56 70.95 70.55 50.94 228.00 226.20 37.58 2.55 2.50 57.21 77.15 76.80 68.72 25.05 24.35 70.48 26.40 25.80 38.94 2.70 2.65 63.65 2.00 1.80 53.54 66.50 66.15 51.77 172.00 171.30 52.07 2.90 2.80 38.66 1.85 1.80 54.30 2.30 2.15 50.71 6.80 6.65 64.69 329.50 327.25 49.84 212.85 210.55 38.58 63.80 62.20 42.66 285.40 281.50 42.86 18.70 18.55 58.63 213.05 211.05 44.65 26.70 26.45 44.24 13.00 12.80 70.98 24.35 23.75 37.15 2.05 2.00 47.69 3.20 3.10 51.29 66.65 66.10 43.92 2.60 2.50

1st

2nd

Resistance 3.05 3.15 73.35 73.85 52.80 53.60 26.30 26.60 25.80 26.05 92.05 92.75 17.45 17.75 11.50 11.70 391.90 396.40 122.30 123.55 11.50 11.65 3.90 4.00 8.60 8.85 2.05 2.20 29.50 29.80 3.05 3.15 2.65 2.75 42.20 43.30 64.50 65.85 222.45 223.90 14.50 14.70 4.75 4.85 41.75 42.10 152.30 154.25 125.15 125.90 40.05 40.55 147.35 148.90 3.75 3.95 1.65 1.70 2.45 2.50 11.85 12.15 43.70 44.30 2.80 2.85 16.65 16.90 71.90 72.40 231.45 233.10 2.70 2.75 77.90 78.30 26.15 26.50 27.30 27.65 2.80 2.85 2.35 2.45 67.35 67.85 173.40 174.10 3.10 3.20 1.95 2.00 2.55 2.65 6.95 7.05 333.50 335.25 217.35 219.55 68.20 71.00 292.10 294.90 19.10 19.30 218.05 221.00 27.25 27.55 13.45 13.70 25.25 25.55 2.15 2.20 3.50 3.65 67.65 68.05 2.75 2.90

Pivot 3.00 72.45 52.15 26.00 25.65 91.20 17.30 11.35 387.00 121.45 11.40 3.80 8.35 1.95 29.30 2.95 2.55 40.85 63.65 220.80 14.35 4.70 41.40 151.05 124.05 39.25 144.75 3.65 1.60 2.40 11.65 42.95 2.70 16.25 71.50 229.65 2.65 77.55 25.45 26.70 2.75 2.15 67.00 172.70 3.00 1.90 2.40 6.85 331.25 215.05 66.60 288.20 18.95 216.05 27.00 13.25 24.65 2.10 3.40 67.10 2.70

Abu Dhabi's insurance house plans $18mn IPO in Q1 8

Monday, February 7, 2011

Rs9.3bn premium comes to SLIC in ‘10 TAIPEI: A woman walks into the headquarters of Nan Shan Life, the Taiwan unit of US insurance giant AIG.-Reuters

FIA recovers Rs73mn in NICL scam case ISLAMABAD: The Federal Investigation Agency officials apprised the Supreme Court that they had recovered an amount of Rs73 million from different accounts operated with the embezzled money of National Insurance Company Limited (NICL). Appearing before a fourmember bench of Chief Justice Iftikhar Muhammad Chaudhry, Justice Muhammad Sair Ali, Justice Ghulam Rabbani and Justice Khalil ur Rehman Ramday, seized with hearing of a suo moto case against the alleged NICL corruption case, FIA Sindh Director Muazzam Jah said that they had detected more than 20 bank accounts in which an embezzled amount of Rs30 million was kept transferring. He said that they were investigating three cases in Karachi one pertaining to Rs35 million renovation of NICL office. He said beside that they were also looking into a $20 million land transaction in Duabi, New York and Singapore. He said they were also gathering facts about Emonte Bronte, a French national and owner of the land, and the Foreign Office had been approached for utilising of proper channels. About Amin Qasim Dada, a key accused of NICL scam, he said that their joint teams were

raiding his hideouts. His name was placed on Exit Control List and all the record of arrivals and departures had been collected and it appeared that he was still inside the country, he added. He said Khalid Anwar and Khawja Akbar Butt and Syed Mohammad Iqbal were the front-men and owners of the bank accounts from where the huge amount of money continued flowing. He said Khalid Anwar was in UK, Khawaja Akbar Butt in US and Syed Mohammad Iqbal in Dubai and red warrants were issued for them. He further apprised that they had moved to freeze the bank accounts and the properties of accused ones under FIA Act. Zafar Iqbal Qureshi, additional director general FIA, apprised the bench that Aqeel Karim Dhedhi, an influential stock, told him that Dada might have fled the country. He said that they had conducted several raids at Dada's residence and recovered various documents. He also apprised that Mohammad Maalick, manager of Al Tahur company, currently in their custody admitted that he had given Rs100 million to Moonis Elahi, owner of the company and son of former chief minister Punjab Chaudhry Pervaiz

Elahi, from a fake bank account. To bench's query he replied that Rana Mohammad Ali, an accused manager of the bank, had taken refuge with Imran Ali Malik and they were investigating the case. Secretary Ministry of Commerce Zafar Mehmood apprised the bench that he had written a special letter to Auditor General of Pakistan for audit of NICL accounts in the last three years and they were in the process. Hearing was adjourned for date in office to be fixed after two weeks. The same bench also took up another suo moto regarding alleged corruption in Pakistan Steel Mills and directed Secretary Ministry of Industries Abdul Ghafoor Soomro to visit Pakistan Steel Mills and look into the issue. The Secretary said that he was trying to improve the performance of PSM and adding last month it earned a profit of Rs3 billion. FIA Director Moazzam Jah apprised that there was total loss of Rs26.5 billion and the FIA had registered ten FIRs. He assured the bench that FIA would not spare a single responsible person. The hearing was put off till date in office to be fixed after three weeks. -APP

Workshop held on Postal Life insurance ISLAMABAD: Two-day workshop of "Postal Life Insurance (PLI) organised by Pakistan Post concluded here at Postal Staff College. Additional Director General PLI Agha Anwar Gul addressing the concluding session said that PLI has an unbeatable presence in the rural areas due to extensive network of post offices. He said that every post office serves as its outlet. He said this gives Postal Life an enormous advantage over its business rivals and helps to offer a wide range of insurance policies to customers at the lowest premium while ensuring highest

bonus on their investment. He urged the participants to work for enhancing the business of PLI to further strengthen the revenue of the organisation. He said for improving services, communication skill must be outstanding. PLI will follow advance marketing and further improve it. Additional Director General (Operation) Pakistan Post Fazli Sattar Khan was also present on the occasion. Addressing the participants, he stressed on the participants to be determined to enhance the existing PLI share in the market. He said that marketing

strategy will encourage more customers and develop trust among them. He said that their management will provide all necessary facilities for improving services in the country. About 27 Assistant Directors and General Managers of Postal Life Insurance (PLI) from Punjab, Khyber Pakhtunkhwa, Azad Jammu Kashmir and Gilgit Baltistan participated in the workshop. On the conclusion of the workshop awards and shields were distributed among the outing Assistant Directors of the year. -APP

Listed insureres show many trends last wk TFD Report KARACHI: Some mixed activities were observed in the insurance stocks last week at the Karachi Stock Exchange (KSE) with around 8 million shares traded altogether in life and non-life sectors. Pakistan Reinsurance was the volume leader with 4.29 million shares followed by Adamjee Insurance with 2.47 million shares. Top gainers of the sector include IGI Insurance which increased by Rs1.45 to close at Rs92.53 and EFU General Insurance by Rs0.94 to close at Rs41.08 while EFU Life Assurance lost Rs4.93 to close at Rs63.12 and Adamjee Insurance by Rs3.72 million to close at Rs91.30 being the major losers of the week.

Insured realty losses after storm in US seen at $1.4 bn WASHINGTON: Losses to insured property and automobiles were estimated between $790 million and $1.4 billion from the winter storm that cut a swath from Texas to Canada this week, catastrophe modeling firm AIR Worldwide said recently. The storm on Tuesday and Wednesday brought snow, sleet, rain and freezing rain with states of emergency declared in Illinois, Indiana, Missouri and Oklahoma, affecting nearly 100 million people in 30 states. AIR Worldwide said in a press release that its insured loss estimates reflect insured physical damage to residential, commercial, industrial and auto property, both structures and their contents; additional living expenses for residential claims and business interruption losses. The Boston-based company said it provides risk modeling software and consulting services for natural disasters and terrorism in 50 countries. Cities across the United States were hit by the snow and ice storm, making many roads impassable and causing the cancellation of more than 10,000 air flights over two days. -Reuters

KARACHI: The State Life Insurance Corporation (SLIC)of Pakistan has successfully secured Rs9.33 billion as First Year Premium (New Business) during the period January 2010 to December 31, 2010 by showing an increase of 35 per cent as compared to last year during the same period. This was stated by Chairman State Life Insurance Corporation, Shahid Aziz Siddiqui, while talking to the media persons here. The Executive Directors and Senior Corporate Executives were also present on the occasion. Siddiqui informed that Renewal Premium also touched the figure of Rs19.54 billion showing an increase of 28 per cent. He also stated that second and third year persistency during the same period stood at 84.71 per cent and 88.80 per cent respectively. The State Life also extended financial protection to 651,460 new families nationwide during the year 20I0 showing an increase of 24 per cent which was 525,947 policies till 2009. Siddiqui pointed out that in the year 2010 State Life has disbursed Rs14.57 billion as Bonus to its policyholders. He said that the bonus for year 2011 will be announced after the completion of actuarial valuation process. The Chairman SLIC informed that State Life covered 1,326 number of groups till December 2010, total group premium was Rs3.95 billion, a leap forward with 6.7 per cent increase from Rs3.70 billion last year 2009. He maintained that the State Life's all four Regions have shown exemplary performance and that its Central Region topped by securing Rs3.33 billion First Year

Premium followed by Multan Region Rs2.40 billion, North Region Rs1.92 billion and South Region Rs1.67 billion by showing an increase of 33 per cent, 40 per cent, 33 per cent and 32 per cent respectively. Chairman State Life also informed that the Corporation's Life Fund which is the key indicator of its financial stability has now reached Rs 225 billion, a substantial increase of 14 per cent from Rs198 billion last year 2009. He said that State Life has a diverse investment mechanism and in 2010 it posted an investment income of Rs27.73 billion, an increase of 34 per cent from Rs20.7 billion in 2009. In Real Estate the Corporation's net income till 2010 was Rs240 million. Siddiqui stated that State Life is considering to launch some new life insurance plans so that people can invest their small savings in the life insurance policies. He informed that the State Life is a very sound and stable financial institution which is also endorsed by the fact that it has been assigned “AAA” rating by Pacra. Chairman SLIC stated that a comprehensive strategy is adopted to handle policy holders complaints and facilitate them in settling their claims promptly. This positive step proved fruitful and major chunk of complaints from policy-holders has been slashed down. He also informed that State Life's Business in Gulf Region has also improved and in the year 2010 it has procured new premium around $3.6 million showing 16.1 per cent increase over the previous year.-APP

BISP termed poor-centric ISLAMABAD: Rs 70 billion Benazir Income Support Programme (BISP) by the PPP-led coalition government is aimed at addressing the financial grievances of the poor segment of society. Chairperson Benazir Income Support Programme (BISP) Farzana Raja was briefing an MQM delegation here. Referring to various BISP programmes including monthly cash grant, Waseelae-Haq, Waseela-e-Rozgar, Life Insurance as well as ongoing nationwide Poverty Score Card survey, she said BISP is being implemented in all four provinces and Federally Administered Tribal Areas (FATA), Azad Jammu and Kashmir (AJK) and Islamabad Capital Territory(ICT). She thanked the delegation for their support in the process of poverty scorecard survey. The delegation was all praise

for BISP and assured of support and measures for reducing poverty in the country. The Chairperson BISP said the allocation for the last fiscal year was Rs70 billion to provide cash assistance to 5 million families which constitute almost 15 per cent of the entire population. The programme aims at covering almost 40 per cent of the population below the poverty line allocation for the FY11 is Rs3.50 billion. The enrolled families are paid cash assistance of Rs1000 per month at their doorstep. Benazir Income Support Programme (BISP) was initiated by government of Pakistan with initial allocation of Rs34 billion ($425 million approximately) for the financial year 2008-09. The Programme aims at covering 3.5 million families in the financial year 2008-2009. APP

BofA sells insurance portfolio to QBE NEW YORK: Bank of America agreed to offload its Balboa insurance portfolio to Australia's QBE Insurance for more than $700 million, the latest in a string of asset sales by the US lender as it recovers from the global credit crisis. Bank of America, which last year sold stakes in BlackRock and China Construction Bank to help meet government bailout-aid repayments, said QBE would assume all of Balboa's $1.2 billion in insurance liabilities under the deal. Shares in QBE, Australia's largest insurance group, jumped 7.7 per cent after it announced the deal, their biggest one-day gain in three years. Analysts said the purchase would bolster QBE's US operations, while investors were also relieved the company was not planning a big capital raising to fund the deal as expected. "The underlying business doesn't seem to be tracking as well as hoped, but they have plugged that gap through this acquisition," said Mark Nathan, portfolio manager at Arnhem Investment. QBE's deal-hungry chief executive Frank O'Halloran has made more than 75 acquisitions in 10 years to expand into 50 countries. QBE acquired US underwriting agency ZC Sterling Corp for $575 million in 2008. "We will continue with our current strategy of growth by acquisition and focus on market-leading underwriting performance," O'Halloran said. O'Halloran, 64, joined QBE in 1976 and has been the chief executive of the company for 13 years. His stake in the company is worth more than $200 million at current prices. QBE also flagged a 2010 year net profit in line with expectations although 17 per cent below last year, and said it expected costs from severe weather in Australia's east in January and this week's Cyclone Yasi to rise to about $200 million. Bank of America said QBE would assume all of Balboa's liabilities in exchange for an equivalent amount of cash and other assets through a reinsurance transaction. QBE entered into a 10-year distribution agreement with the bank for lender-placed insurance and real estate owned programs and certain voluntary consumer insurance products under the deal. Bank of America said last year it planned to sell Balboa as part of asset sales to raise $3 billion to complete its repayment of US government bailout funds. It said the transaction was expected to result in a onetime gain and it would retain Balboa's net tangible equity of $1.7 billion which would be redeployed as the Balboa insurance liabilities expire. O'Halloran said the preliminary estimate of damage from Queensland's Cyclone Yasi this week was around $100 million, while flooding and severe weather across Australia's east in January would cost it about $100 million. This was on top of about $45 million for Queensland floods in late 2010. QBE said it expected the annualised gross earned premium and net earned premium from the distribution agreement to be around $1.5 billion and $1.3 billion, respectively. -Reuters

Dilhara Fernando celebrates with his teammates after his dismissal of Chris Gayle

Monday, February 7, 2011

Oram given go-ahead to enter CWC after injury AUCKLAND: New Zealand all-rounder Jacob Oram has been cleared to travel to the World Cup after sustaining an injury before the team's oneday match against Pakistan on Saturday. Oram had been expected to play at Eden Park but suffered ankle and foot pain bowling before the game. He underwent scans and an examination and was given the all-clear, New Zealand Cricket said on Sunday. "I developed ankle pain and although it didn't feel serious I wasn't able to bowl without discomfort," Oram said in a NZC statement. "The medical staff got the necessary assessment done and I was sweating on the results but pleased when the doctor let me know that I was fit to travel with the team to the World Cup. "I have inflammation around the joint so not a significant tear or break." Oram has had a terrible run of injuries in the past few years and was sent home from the team's tour of Sri Lanka last August with a recurrence of a knee tendon injury that required surgery. He returned to the New Zealand side for the one-day series against Pakistan. "I've worked hard over the last six months to get fully fit so it is extremely disappointing to pick up another niggle. "However, I am confident it isn't too serious and am determined to do everything I can to be fully fit for the first match." Oram is expected to be fit for New Zealand's first warmup against Ireland in Nagpur on Feb. 12. Daniel Vettori's side have been drawn in Group A for the Feb. 19-April 2 World Cup with champions Australia, Pakistan, Zimbabwe, Canada, Kenya and Sri Lanka. -Reuters

Aus thump Eng 6-1 in ODI series PERTH: Australia wrapped up an emphatic 6-1 series win over a weary England with a comprehensive 57-run win in the seventh and final one-day international at the WACA Ground in Perth on Sunday. The home side made 279-7 after winning the toss, and in reply England managed just 222 in their final match of a marathon Ashes tour, despite a lusty unbeaten 60 by Michael Yardy. The English, who now return home for a few days of rest before departing for the World Cup next weekend, were never in the hunt after opener Andrew Strauss and Steven Davies both fell for ducks to leave them struggling at 5-2. Jonathan Trott and Kevin Pietersen tried to re-start the innings, but the loss of both their wickets and that of Ian Bell left England on 64-5 and their hopes in tatters. Mitchell Johnson claimed 3-18 for the home side and the wayward Shaun Tait 3-48, but he also conceded nine wides and five no-balls. After winning the toss and electing to bat, halfcenturies by Perth natives David Hussey and man-ofthe-match Adam Voges helped the home side recover from a slow start to post an imposing total. Australia rested Michael Clarke and Shane Watson, and were 103-4 in the 26th over when stand-in captain Cameron White was dismissed for 24.-APP

End of the road for

Butt and Asif? S

alman Butt faces the end of his international career after bearing the brunt of the blame for the corruption scandal which has resulted in minimum fiveyear bans for the former Pakistan test captain and two

time and is unlikely to play test cricket again. There also appears to be no way back for his senior pace bowler Asif, who is two years older than Butt and who has been in trouble with the authorities before after test-

Butt and his opening bowlers Mohammad Asif and Mohammad Amir were found guilty of arranging for deliberate no-balls to be delivered in the fourth test against England last August.

team mates. An International Cricket Council (ICC) tribunal banned Butt for 10 years on Saturday, five of which will be suspended if he does not offend again and takes part in the Pakistan Cricket Board's anti-corruption campaign. Butt and his opening bowlers Mohammad Asif and Mohammad Amir were found guilty of arranging for deliberate no-balls to be delivered in the fourth test against England last August. Asif was banned for seven years, with two suspended, while teenager Amir was handed a straight five-year ban. Butt, who led his country to test victories over England Australia in his brief tenure as his country's leader last year, will be 31 in five years'

ing positive twice for a steroid and getting caught with a recreational drug in his

wallet at Dubai airport. Amir, who bowled brilliantly at Lord's, is only 18 but five years is still a long time in any athlete's life and

especially so in a player's formative years. Amir told a private news channel that he would continue to train and keep himself fit. "The ban does not say I can't train or play privately," he said. However, no player is indispensable and Pakistan, despite their current security and corruption problems, have a deep pool of reserve talent as they demonstrated in winning test and one-day series in New Zealand this year. LITTLE RECOURSE Five years was the minimum ban the ICC could have imposed under its anti-corruption code after the tribunal concluded the trio were guilty of spot-fixing, the offence of deliberately manipulating individual events within a match. London sports lawyer Adam Morallee said it was difficult to see what recourse the three Pakistanis now had, especially as they had not been supported by their national board. The trio, who deny any wrongdoing, have a right of appeal to the Lausanne-based Court of Arbitration for Sport. "They could appeal at the length of the sentences but the bans are at the lower end of the scale," Morallee, a partner in the law firm Mishcon de Reya, told Reuters. The three-man tribunal, headed by British lawyer Michael Beloff, said it was up to the ICC to decide if the full decision should be released. "It is our strong and unanimous view that it is in the interests of all concerned in the world of cricket that publication should take place as soon as possible," Beloff said. The spot-fixing scandal came 10 years after a matchfixing furore resulted in life bans for three test captains. Spot-fixing involves a player, or players, agreeing to perform to order by prearrangement. For example, a bowler might deliberately bowl consecutive wides in his second over or a batsman could make sure he does not reach double figures.

Butt, Amir will appeal Salman Butt and Mohammad Amir returned to Pakistan on Sunday and pledged to clear their names of corruption charges that earned them bans of at least five years each from an International Cricket Council (ICC) tribunal. Former test captain Butt and pace bowlers Amir and Mohammad Asif were found guilty of corruption by the tribunal on Saturday in Doha. Butt was banned for 10 years with five of them suspended if the 26-year-old does not reoffend and takes part in a Pakistan Cricket Board (PCB) anti-corruption campaign. Asif, 28, was banned for seven years with two suspended under the same terms as Butt, while 18-year-old Amir was given a straight five-year ban. Only Amir, whose lawyer said he would appeal, has a realistic chance of playing international cricket again. Five-year bans were the minimum an independent three-man tribunal could impose under the ICC's anti-corruption code once it had concluded that Butt, Asif and Amir were guilty of spot-fixing in the fourth test against England last August.

Because individual spotfixing incidents may have no influence on a game's outcome, they are particularly difficult to detect and the Lord's offences came to the authorities' attention only

Butt and Amir encountered no hostile reception when they exited the airport and both maintained their innocence. "I am innocent of the charges made against me and I stand by what I say. I will not rest until I get the ban overturned," Butt told reporters at the airport. "I don't think our arguments were heard properly and the ban is unjustified." Amir expressed similar concerns with the hearing. "I am innocent and I was confident they would clear me. The ban came as a total shock," he said. "We are waiting for the ICC to release the detailed judgement of the tribunal after which we will decide what to do but we have made up our minds to appeal the ban in the first instance." Butt said he wanted to see the detailed judgement to find out on what grounds the tribunal had handed down such lengthy bans. "We will appeal the ban once we get the judgement and study it. But we definitely want to clear our names from this ban," he added. Reuters

after a sting operation in the British newspaper The News of the World. As a result of a separate investigation, Britain's Crown Prosecution Service charged the Pakistan trio and

35-year-old sports agent Mazhar Majeed from Croydon, England, on Friday with conspiracy to obtain and accept corrupt payments and with conspiracy to cheat.-Reuters

Trio banned on solid evidence: Lorgat

he International Cricket Council's chief executive Haroon Lorgat on Sunday said three Pakistan players -- Salman Butt, Mohammad Asif and Mohammad Aamer -- were banned on solid proof of corruption. "We are satisfied at the tribunal's decision, which was taken on solid evidence and we hope with this decision the image of the game will improve," Lorgat told a press conference in Doha. Lorgat, who was accompanied by the head of the ICC's AntiCorruption and Security Unit, Ronnie Flanagan, was speaking a day after Butt, Aamer and Asif were handed lengthy bans for spot-fixing. Butt was banned for 10 years, with five years suspended, while Asif and

Aamer were handed bans of seven years with two suspended and five years respectively. The charges relate to alleged incidents during the Test against England at Lord's last year, when Britain's News of the World newspaper claimed the players were willing to deliberately bowl no-balls. The newspaper alleged the three had colluded in a spot-fixing betting scam organised by British-based agent Mazhar Majeed. In a separate development on Friday, British prosecutors charged the three players as well as Majeed with corruption offences and summoned them to appear in a London court on March 17. The trio have repeatedly denied wrongdoing.

Lorgat rejected the suggestion that the punishments were lenient. "I don't believe the sentences are lenient by any stretch of the imagination," said Lorgat. "I think they are balanced with an expert and experienced jury dealing with the case." The three-man tribunal was headed by Michael Beloff QC and also contained Albie Sachs of South Africa and Sharad Rao of Kenya. "In legal terms you have to be proportionate when you are giving punishment and we must distinguish between match-fixing and spot-fixing, and the jury was independent and they decided on proportionate punishments," said Lorgat. Butt and Aamer have expressed disappointment at the bans, with

Butt hoping to get the ban reduced once the ICC code of conduct --

which carries a mimimum five-year punishment -- is amended.-NNI

International

Monday, February 7, 2011

US FIGHTS MIXED MESSAGES ON EGYPT CRISIS US officials insist their message on the Egypt crisis has been unwavering: President Hosni Mubarak must allow political transition, and he must do it now. But Washington is having a much trickier time defining what that transition might look like, how long it will last and whom it might involve. All this has sown public doubt about what the real US strategy is to deal with a crisis that threatens to upend decades of US policy in the Middle East. Political analysts say the Obama administration is still struggling with a volatile situation, leading to mixed messages on whether it believes Mubarak still has a role in Egypt's political future or what sort of government it may accept. But they describe it as a struggle more over tactics than policy, underpinned by an overarching US goal of a stable Egypt that can be encouraged -- step by step -toward further democracy without destabilising other alliances. "They are adjusting their speed to fit the terrain," said Robert Danin, a Middle East expert at the Council on Foreign Relations. "The administration is trying to manage a number of pieces. Mubarak's departure is only one element of a larger operation, which is to ensure what happens with elections, what happens with transition, and what happens with the constitution." The new US emphasis was clear this weekend when Secretary of State Hillary Clinton told a Munich security conference that Egypt's political rebirth could take longer than Mubarak's opponents demand. "The principles are very clear. The operational details are very

challenging," she said, noting that Mubarak has pledged not to stand again for president and promised other reforms, while violence against anti-government protesters had abated. Clinton's comments, after a week of pressure on Mubarak to -- in US President Barack Obama's own words -- "make the right decision," were interpreted as US approval of a gradual transition to genuine elections. This scenario which might allow the 82-year-old president to remain in office until polls in September. Warning that radical forces were ready "to derail or overtake the process", Clinton also voiced support for the outreach efforts of Vice President Omar Suleiman, a figure regarded with scepticism by many in Egypt's opposition due to his history as Mubarak's intelligence chief. Egyptian activists were appalled, and grew further alarmed by comments by Frank Wisner, a former diplomat sent last week to deliver Obama's personal message to Mubarak. Wisner, who left Cairo apparently without convincing Mubarak to step down, said rhetoric demanding his swift departure could backfire and suggested the long-time leader still had a crucial role to play. "The president must stay in office to steer those changes," Wisner told a Munich audience in comments that, while disavowed by Washington, nevertheless were taken as representing at least one option now under US consideration. BALANCING PRIORITIES Washington's approach to the tur-

moil has been based from the start on Egypt's strategic importance, as the first Arab country to sign a peace deal with Israel, the guardian of the Suez canal and a force against militant Islam in the region. The new, softer US approach was condemned by Egyptian opposition leader Mohamed Elbaradei, who called it a "major setback" that could spur even angrier demonstrations. Brian Katulis, a security expert at the Center for American Progress, a Washington think-tank, said the Obama administration has recognised it will take time to refashion

Egypt's political stage without tipping it into chaos. "The disparity of power between the current power elite in the government and security services on the one hand and the political opposition ... is strong," Katulis said. "I don't see the current powers-that-be moving quickly to open things up." Clinton and other officials have signalled they may be open to a role for Egypt's powerful Muslim Brotherhood in a future government, although they have underscored that only those who reject violence and accept basic democratic principles should have a seat

at the table. But some analysts, echoing Egyptian protesters, believe the Obama administration has already lost one chance to bolster Egypt's democracy movement by choosing to engage more deeply with Mubarak's government. "We have missed a historical opportunity because we had here a chance to really change not only Egypt but much of the Arab world in a popular non-violent movement led by educated middle class elements," said Robert Springborg, an Egypt expert at the US Naval Postgraduate School. "This is a cynical exercise in

power by the Obama administration and the Egyptian military," he said. But Danin of the Council on Foreign Relations said the US approach could end up buying crucial time -- although the outcome will depend on whether the United States keeps up pressure for real political change after Mubarak finally goes. "We're not haggling over whether (Mubarak) will go, we are haggling over the timing and the mechanism," he said. "Mubarak may not be showing promise, but in a way they are already carving the ground out from under him." -Reuters

Corporate split slows US tax cut plan Y

ou might think President Barack Obama's talk of cutting the US corporate tax rate would have the entire business world cooing, but instead the idea could lead to a wrenching split in corporate America. The reason: Obama wants to fund a rate cut by closing tax loopholes and slashing deductions enjoyed by America's biggest companies. Opposition from corporate giants who could lose cherished tax breaks, along with the political risk of tackling tax issues in the runup to the 2012 presidential election, will likely push off reform for several years. "The whole idea of corporate tax reform is going to split the business community in half," said Neal Weber, a consultant for health, retail and other companies at RSM McGladrey. "You're talking about lowering the rate, but some are already paying a low rate."

Companies such as DuPont Co and Hewlett-Packard Co have artfully employed deductions, credits and other breaks to cut their effective tax rates below 20 per cent and more, according to Thomson Reuters research, which calculated rates paid using cash taxes divided by pretax income over the last five years available. That is far beneath the statutory 35 per cent corporate rate. The unlucky ones do not enjoy as many tax preferences and pay closer to the top rate, including oil behemoth Exxon Mobil Corp and retailers such as Home Depot and The Gap. The debate is at an early stage and no firm plan has emerged. An overhaul of this sort -- where well-funded interests will be fighting for their billions in tax breaks -could well take years. "I don't have many clients that are dying for fundamental tax reform," said Jeff Trinca, a lobbyist whose clients include big multinationals such as

FedEx Corp. MF Global investor analysts said odds are less than 50 per cent of passage this year, given the competing demands. The White House insists that a rate cut should not add to a projected fiscal-year 2011 US government budget deficit of $1.5 trillion, setting up inevitable winners and losers. While Obama courts corporate America, including tapping General Electric Co Chief Executive Jeffrey Immelt to head a jobs council, he also looks to curb corporate tax breaks. GE paid an average rate of 14 per cent over the past five years, according to Thomson Reuters. Although the top 35 per cent rate is among the highest in the industrialised world, Obama and others note that after deductions and credits, USbased companies on average pay closer to the mid-20 per cent average in other major nations.

WIDE GAPS ACROSS, WITHIN INDUSTRIES Driving a business split are wide gaps in taxes paid across industries and even among rivals. Big retailers and health care service companies tend to pay closer to the top rate, spurring more enthusiasm for change in those sectors. These companies have little intellectual property such as patents to transfer overseas to shelter profit. The world's biggest retailer, Wal-Mart Stores Inc, paid an average tax rate of 33 per cent over the past decade, according to Thomson Reuters research. Retailers such as Sears Holding Corp would "absolutely" benefit from a cut in the corporate rate, said National Retail Federation tax counsel Michelle Bernstein. Even so, Bernstein, who worked on tax reform legislation in the 1980s, said: "It is not the kind of thing you can

do in a matter of months, even a year." Major healthcare and technology companies are among those with big intellectual assets, letting them keep profits abroad. Companies incorporated in low-tax countries, from Ireland to Cayman Islands, will also suffer if loopholes are cut. Big oil companies pay among the highest tax rates across all industries, but they are weary because despite high rates, the industry is a popular target of politicians. Exxon and Chevron Corp both paid close to an average 40 per cent rate over the past five years, according to Thomson Reuters. Obama in his first two budgets sought to cut tens of billions of dollars in tax breaks for the oil, gas and coal companies, and he appears ready to revive those proposals. "We are obviously excited to engage in the conversation of corporate reform, but we just

don't want to be singled out on anything," said Brian Johnson, a tax expert at the American Petroleum Institute. INNOVATION, FOREIGN PROFITS Obama in his State of the Union speech last month pitched more investment in innovation like green energy, calling for a "Sputnik moment." Big companies will likely use this line to preserve favored tax breaks, like a research and development credit that costs the government $6 billion a year. "In fact Obama keeps calling for the R&D tax credit to be made permanent," said Anne Mathias, an investor analyst at MF Global. "The idea behind cutting some of the offshore breaks is to spur US investment." Less popular tax provisions will be first on the block. Obama's past budgets sought to limit companies' ability to defer taxes on income earned

abroad. Eyes move next to Obama's fiscal 2012 budget proposal, scheduled for release Feb. 14. Republicans, for their part, have defended some of the breaks Obama blasts, and they have fundamental disagreements about the need to fully fund a rate cut. Obama has not yet set out a path for reform, as Ronald Reagan did when he set a deadline for his administration to deliver a tax overhaul plan in the 1980s. It took several years for the historic 1986 bipartisan tax overhaul bill to be signed. "If he stays at that level of message (in the budget) then it won't happen," lobbyist Trinca said. US Rep. Dave Camp, Republican chairman of the House tax-writing committee, is keen to revamp the tax code, though he has not proposed a timeline for legislation. "I'm under no illusion that the task before us will be easy," he said recently. -Reuters

Wall St upset as 3 â&#x20AC;&#x2DC;store chainsâ&#x20AC;&#x2122; deny data W

hen it comes to sales results, investors and economists want more, more, more, but retailers keep giving less, less, less. Three more US store chains have dropped out of the monthly sales reporting frenzy on which many investors rely to trade stocks, further compromising indices used by some analysts as a gauge of the health of consumer spending. On Thursday, teen clothing retailers Abercrombie & Fitch Co, Aeropostale Inc and American Eagle Outfitters Inc reported monthly sales for the last time, becoming the first public companies to stop since Wal-Mart Stores Inc decided in 2009 it had had enough. As recently as five years ago, Thomson Reuters' SameStore Sales index tracked 68 retailers. Starting next month it will only include 25 chains. One by one in recent years,

chains such as AnnTaylor Stores Corp, Dollar General Corp and even Starbucks Corp have dropped out. By depriving investors of monthly updates that keep Wall Street expectations more closely aligned to reality, retailers can end up with even bumpier stock moves when they report quarterly results, investors warned. "The lack of transparency just leads to speculation," said Walter Stackow, an analyst at Manning & Napier, whose holdings include Nordstrom Inc, Kohl's Corp and BJ's Wholesale Club Inc. Many retailers have tired of seeing their shares take a beating when their monthly sales figures fall too far below Wall Street estimates. Abercrombie last month said December same-store sales rose 15 per cent, above analyst forecasts, and its shares rose. Conversely, American Eagle's same-store

sales fell a worse-than-expected 11 per cent, sending shares down. "In order not to see that volatility, they would rather not report monthly," said Jharonne Martis, the director of consumer research at Thomson Reuters, who oversees the index. Wal-Mart cited stock volatility when it announced in 2009 it would stop monthly reporting. Other retailers have tried to follow WalMart's lead. Macy's Inc had stopped monthly sales reports in February 2008. But when the economic crisis raged later that year, Macy's felt it better to reassure investors by checking in more frequently and resumed monthly reports. "Deep down, they'd all like to be done with this," Nomura Securities analyst Paul Lejuez said. "It makes it harder for us to have fewer data points."

MONTHLY SALES INDICES IRRELEVANT? Economists rely on the data and the overall same-store sales chain indices, which are weighted in relation to a

retailer's size, to get a first glimpse of consumer spending, which accounts for 70 per cent of the US economy. Most retailers that do report monthly do so on the first

Thursday every month. Thomson Reuters and others use that data to compile indices of same-store sales. The US Department of Commerce comes out with its own broader figure a week later and includes public and private retailers, auto sales, grocery stores and a host of other merchants. "In that broad, big picture, when you think of all the different retail channels and specialists, there are huge parts of retailing that are unaccounted for in the monthly numbers," Kantar retail senior economist Frank Badillo said. Badillo said that department stores and apparel retailers -- even with the three latest defections -- are well represented in the Kantar index, which included 31 retailers through this month. National Retail Federation spokesman Scott Krugman also argued that the

reports are of limited value. "It's great for analysts following a particular stock, but not so helpful for tracking overall consumer spending," Krugman said. Analysts and economists have long quibbled how much monthly reports reflect the overall economy when big players such as Wal-Mart and Best Buy Co Inc do not provide data. Wal-Mart alone, with expected fiscal 2011 sales of $423.7 billion, is nearly 25 times larger than J.C. Penney Co Inc and six times bigger than Target Corp, both of which still report every month. Still, because the 25 remaining companies range from Saks Inc to J.C. Penney, the monthly reports tap a broad enough group of retailers to be useful. "It's still an input into the wider picture so it's not completely irrelevant," Manning & Napier's Stackow said. Reuters

International & Continuation

Monday, February 7, 2011

Karzai to announce Afghan handover start March 21 MUNICH: The president of Afghanistan said on Sunday he would announce the start of a process to transfer responsibility for security to Afghan forces from international forces on March 21. NATO agreed with President Hamid Karzai at a summit in November to begin the handover to Afghan forces this year with the aim of completing the transition by the end of 2014. The Western military alliance has said it hopes to launch the process, which is aimed at a gradual reduction of the 150,000 foreign troops in the country, next month. Karzai told an international security conference in Munich that the Afghan government was determined to show leadership, adding: "I will announce the first phase of transition on the Afghan New Year, which is the 21st of March." Karzai said this had been made possible by a big effort to boost the size of the Afghan security forces. NATO has stressed that transition will be gradual, conducted district by district and province by province, and will depend on security conditions.

NATO initially planned to start the handover at the end of last year. But this was hampered by slow progress in building up Afghan forces and by an increase in insurgent violence, which hit its worst levels since the overthrow of the Taliban in 2001. SURVEY FUELS DOUBTS Doubts over the transition process were underscored on Thursday by a survey that showed Afghanistan's police force is only slightly more popular than the Taliban in the insurgent heartlands of the south. Results of the U.N.-commissioned survey portrayed a police force widely viewed by Afghans as corrupt and showing favouritism towards people based on personal connections. The findings were a blow to Western efforts to extend the reach of the central government and its security forces to areas under the sway of a parallel Taliban authority, particularly in the south which has borne the brunt of NATO and US military operations to drive back the Islamist insurgents. In Munich, Karzai repeated complaints that what he calls "parallel structures" -- private

foreign security firms protecting international interests and Provincial Reconstruction Teams run by foreign military contingents -- were hampering efforts to expand the influence of the Afghan government. He said there should be a similar transfer of the roles alongside the overall security handover. Karzai further said international backers of Afghanistan must stick to promises to channel a greater per centage of financial assistance through the Afghan government. NATO's top commander, Admiral James Stavridis, told the conference the alliance agreed with Karzai on a broader handover as Afghan capabilities improved. "I think we are going to see increased Afghan responsibility across the board." Stavridis and US Under Secretary for Defence Michele Flournoy both expressed guarded optimism about progress in the battle against militants. Stavridis said the gains were both "fragile" and "reversible" but "I am cautiously optimistic that we are on a good track."-Reuters

OECD wants more Swiss help in tax cheat hunt ZURICH: The Organisation for Economic Co-operation and Development (OECD) wants Switzerland to make the international hunt for tax evaders easier, a Swiss newspaper reported on Sunday. The OECD criticised current Swiss requirements for legal assistance in cases of tax evasion, saying they were too restrictive and an obstacle for an effective exchange of information, weekly SonntagsZeitung said, citing a government document.

Swiss Finance Minister Eveline Widmer-Schlumpf therefore made proposals to the government to provide socalled legal assistance more easily to other countries, the paper said. Switzerland had to give in to international pressure in 2009 and softened bank secrecy, pledging to help other countries in the hunt for tax evaders to comply with OECD standards. However, the country said it would only give legal assis-

tance if the other country could provide the name of the suspect and his or her bank. Spokesmen for the government and the Finance Ministry confirmed that the OECD peer review was ongoing but declined to comment on details of the newspaper report. "As usual in such a review process, there are open questions, which are dealt with by the finance department," Finance Ministry spokesman Daniel Saameli said.-Reuters

Sudan troops mutiny in southern oil state; 50 killed JUBA: A mutiny by Sudanese troops refusing to leave the south ahead of its expected independence has spread through towns in an oil-producing state, with at least 50 people killed in the past four days, officials said. The southern and northern armies are carrying out a difficult process of splitting up and dividing their weapons, with SouthernSudan expected to emerge as Africa's newest state on July 9 following a referendum last month. Battles with tanks and machineguns broke out in the politically sensitive southern town of Makalal on Thursday when southern members of a northern army unit refused to redeploy to the north and turned on other members of their unit. Fighting then spread from Makalal, capital of Upper Nile

state, to the settlements of Melut and Paloich on Friday and Saturday, state officials told Reuters on Sunday. The area includes oil concessions run by Petrodar, a consortium led by CNPC of China and including Malaysia's Petronas and Sudan's own Sudapet. Final results of last month's referendum are due to be announced on Monday. Early results show the vast majority of southern voters chose independence in the vote, the result of a 2005 peace accord that ended decades of civil war. "The fighting in Malut yesterday (Saturday) killed 19 and wounded 18 ... In Paloich 11 were killed and eight wounded," said Akuoc Teng Diing, county commissioner of Melut county. All the dead in the two locations were soldiers, he said.

Officials earlier had said 20 people died in Malakal, including two children and a Sudanese driver working for the U.N. refugee agency UNHCR, caught in the crossfire. Malakal has been patrolled by a combined military unit made up of the north's Sudan Armed Forces (SAF) and the south's Sudan People's Liberation Army (SPLA). The United Nations says the joint force is in the process of splitting up. The SAF unit included many southern soldiers drawn from a militia that fought alongside the north during the civil war. Southern army spokesman Philip Aguer said it was those southern soldiers in the SAF unit who resisted the redeployment north and began exchanging fire with other members of the same SAF unit.-Reuters

UBS cuts bonus pool for 2010 to $4.5 billion ZURICH: Swiss bank UBS AG will pay out less money in form of bonuses in 2010 than in the previous year, Swiss weekly Sonntag reported on Sunday. UBS's total bonus pool for its some 65,000 employees would amount to 4.3 billion Swiss francs (2.7 billion pounds), compared with 4.8 billion for 2009, the paper said. One reason for the lower amount was that UBS raised the fixed part of employees' salaries by 10 to 20 per cent, in line with practice at other banks, the paper said. UBS spokesman Peter Hartmeier declined to comment on the numbers and said the bank would provide details about its salary system when it publishes full-year results on Tuesday. Analysts expect the bank to post a net profit of 7.4 billion francs for 2010. The Wall Street Journal reported on Friday UBS executives were concerned that pending bonuses will be inadequate to retain top talent at the Swiss bank, one of the hardest hit during the financial crisis. Like other global banks, UBS has to comply with stricter regulation of salary systems and can only pay out a certain share of bonuses immediately. Part of any bonus has to be retained and payout depend on a bank's future performance. UBS has worked to rebuild the investment bank run by Carsten Kengeter, whose 13.9 million franc bonus for 2009 was unpopular in Switzerland when the bank reported a net loss in the same year. Chief Executive Oswald Gruebel declined a bonus in 2009. The bank's management also faces internal criticism over its employee appraisal system, two other Sunday papers said..-Reuters

Thai and Cambodia troops clash again on disputed border BANGKOK: Thai and Cambodian soldiers fought with rockets, guns and tanks on Sunday in a third day of clashes over disputed territory surrounding a 900-year-old Hindu temple, the area's worst fighting in years. Tracer bullets cut through the dark and shelling could be heard from a 4.6-sq-km (twosq-mile) contested area around the 11th-centuryPreah Vihear temple on a jungle-clad escarpment claimed by both Southeast Asian neighbours, witnesses said. The heaviest fighting subsided after about three hours but sporadic gunfire was heard into the night. A Kantaralak district hospital inThailand's Sri Sa Ket province said 10 soldiers and two villagers were wounded. At least 2,500 people fled villages on the Thai side of the border and hundreds of Cambodians were evacuated, as Thailand brought in more troops and armoured vehicles, according to witnesses and local authorities in both countries. "At this point, the cease-fire has not been achieved. We are negotiating on all levels but meanwhile we have to respond and defend ourselves," said Thai army spokesman Colonel Sansern Kaewkamnerd, accusing Cambodian troops of firing first.-Reuters

Bangladeshis protest over another big market fall DHAKA: Angry investors took to the streets of the Bangladeshi capital on Sunday after the stock exchange suffered another dramatic fall, the latest of a series of collapses that forced halts in trading several times last month. The benchmark Dhaka Stock Exchange index shed 5.7 per cent on Sunday, the first working day of the week in the overwhelmingly Muslim country, following a 2.5 per cent slide on Thursday. Hundreds of disgruntled investors demonstrated and chanted slogans outside the stock exchange building, halting traffic for several hours in the financial district, witnesses said. "I invested all my savings in the share markets, but have lost everything. Now I am a pauper," a sobbing small investor said.

Share prices nearly doubled in 2010, encouraging a stream of new investors to enter the markets, but have crumbled since late last year after the market regulator and the central bank took measures to calm trading, prompting frequent violent protests. The number of individual investors has risen to 3.3 million from fewer than 500,000 in 2006. Many small investors took out large loans to invest in shares at a time when the weakness of the economy made shares look an attractive investment. "We are trying our best to bring back stability to the stock markets," Finance Minister Abul Maal Abdul Muhith said. The government has ordered the listing of 26 state-owned companies in an effort to increase the supply of shares.

Two Americans in Iranian court as spy trial starts TEHRAN: Two Americans held in an Iranian jail for the last 18 months on suspicion of spying appeared in court on Sunday on the first day of their closed-door trial, state television reported. Shane Bauer and Josh Fattal were arrested on July 31, 2009 near Iran's border with Iraq, along with a third American, Sarah Shourd, who was released on $500,000 (310,385.50 pounds) bail in September and returned home. The three, in their late 20s and early 30s, say they were hiking in the mountains of northern Iraq and if they crossed the unmarked border into Iran, it was by mistake. State-run English language Press TV ran a banner headline saying the two men

had attended the session, which had finished. It did not indicate when the trial would resume or what had happened in the court, which was closed to the public and press. A trial date set for last November was postponed at the last minute due to the absence of Shourd, who has met President Barack Obama and his Iranian counterpart Mahmoud Ahmadinejad since her release. The affair has added to tensions between Tehran and Washington, which have had no diplomatic ties since the 1979 Islamic Revolution and the subsequent storming of the US embassy by revolutionary students.-Reuters

Iraq to honour Kurdish production-sharing deals-report BAGHDAD: Iraq will honour production-sharing contracts that Kurdish regional authorities have signed with foreign companies,Prime Minister Nuri al-Maliki said in an interview with news agency AFP. The report was not confirmed by the Oil Ministry and seemed to catch senior Iraqi oil officials by surprise. Exports from the semiautonomous Kurdish region were stopped following a prolonged dispute between Iraqi Kurdistan and the Arab-led government in Baghdad over the legality of contracts awarded by the Kurds to foreign companies. "The oil ministry accepted these contracts because the nature of the extraction in Kurdistan is different from Basra," Maliki told AFP in an

interview on Saturday, referring to Iraq's oil-rich southern province. "There is a need for bigger efforts there, while in Basra it (oil) is closer to the surface. It's difficult to have service contracts in Kurdistan but it's normal to have them in southern Iraq," he added. An Iraqi senior official close to Maliki and other officials contacted by Reuters on Sunday said they were not aware of any decision to accept these contracts. Iraq's Oil Ministry did not comment. Kurdish exports from two fields -- Taq Taq and Tawke -flowed briefly in 2009 but were halted when the Iraqi government refused to pay the oilcompanies working the fields, including Norway's DNO and Turkey's Genel Enerji.-Reuters

The minister on Sunday asked the heads of these companies to list their shares within a short time or quit. But he did not specify a timeframe for the listing. One stockbroker said a slide in confidence had led to panic selling by retail investors, while banks and other institutions had remained inactive. Banks, some of which had invested 75 per cent of their deposits in the stock market against a cap of 10 per cent in the past, recently held back on further investments. The benchmark Dhaka index has lost more than 24 per cent since Dec. 5, when it hit a high of 8,918.51 points. A government-appointed committee is investigating the recent series of plunges in share prices and will submit its report within two months.Reuters

Torrential rain in Sri Lanka kills 11 COLOMBO: Heavy rain triggered flooding in Sri Lanka that killed at least 11 people and is threatening up to 90 per cent of the staple rice crop, heightening concern about supply shocks and inflation, officials said on Sunday. Heavy monsoon rain caused flooding across the Eastern, Northern and North Central provinces for the second time in less than a month. More than 250,000 people have been forced into temporary shelters by this latest inundation. "A large amount is destroyed. More than 90 per cent of the crop will be destroyed this time, " Agriculture Minister Mahinda Yapa Abeywardene told Reuters, referring to the rice crop. "There is no other option than replanting." Sri Lanka cultivates 570,000 hectares (1.4 million acres) of paddy twice a year, and another 100,000 hectares (250,000 acres) has been added in the former war zone in the Northern and Eastern provinces, the government says. January's floods killed more than 40 people and forced as many as 325,000 from their homes and the Agriculture Ministry had said that at least 21 per cent of the rice crop was destroyed. Sri Lanka has maintained low inflation since May 2009, when a three-decade war with Tamil Tiger separatists ended, mainly because of higher food supplies coming from the Northern and Eastern Provinces where fighting took place. Flooding and displacements are common in Sri Lanka, where a southern monsoon batters the island between May and September, and a northeastern monsoon runs from December to February.Reuters

CONTINUATION The Commonwealth Lawyers Association (CLA) is a proMoreover, mutual funds and banks also net ejected $4.46 mil- fessional association of lawyers from across the commonwealth whose aim is to ensure an independent and efficient lion and $0.63 million respectively. legal profession to serve the people of the commonwealth in Continued from page 1 addition to protecting and safeguarding respect for the rule of No #2 officials they can not clear imported cars without issuance of SRO. law. -Online It is pertinent to mention here that prices of used cars have shot up Continued from page 1 No #4 in the local market of Japan after sudden surge in demand from Talking exclusively to Online, AG FIA Islamabad, Ghulam Asghar Pakistani buyers following relaxations in import regime.-Agencies Jatoi said that the forensic test of Blackberry phones has been completed and a report also made comprised incoming and out-going Continued from page 1 No #3 He also cautioned that not paying attention to the other streams calls which would be presented before the court today. -Online of the program, which included such important segments as Continued from page 1 No #5 Constitutionalism, Human Rights and the Rule of Law, Corporate South Asia, today, was witnessing vibrant democracies at work. and Commercial Law, the Judiciary and Legal Profession, The formulation of SAARC Democracy Charter was an important Contemporary Legal Issues, would render the conference defi- achievement. SAARC Standing Committee is meeting in cient in its essential aspects, on account of their vital role they Thimphu, Bhutan and will be followed by the Meeting of SAARC play in the present day scenario. Council Ministers.-NNI

No #1

Continued from page 1

CAIRO: A young anti-government protester with the Egyptian flag painted on his face sits inside a burnt out vehicle at Tahrir Square.-Reuters

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Election Commission will also be reshaped

Cabinet resizing under review: PM

ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani talking to Senator Mian Raza Rabbani who calleed on hin at PMâ&#x20AC;&#x2122;s House-Online

Cairo chaos may push oil above $110 KUWAIT: Global oil prices could exceed $110 a barrel if political unrest in Egypt continues, a member of Kuwait's Supreme Petroleum Council said on Sunday. Oil prices have spiked due to tension in Egypt. Brent crude hit $100 per barrel for the first time since 2008 on fears instability could spread through the Middle East, which together with North Africa pumps over a third of the world's oil. "I expect oil prices to reach $110 during the first half of 2011, however, it could go above that level if Egypt's current crisis continues," Imad al-Atiqi, a member of the OPEC member's highest oil policy body, told Reuters in a telephone interview. "A huge amount of oil passes through the Suez Canal and the country's stability is

essential for the Middle East's stability, particularly Israel," he said. Egypt is a small oil and gas exporter and the main danger of the unrest is seen as the closure of the Suez Canal or the Suez-Mediterranean (SUMED) oil pipeline which passes near Cairo. The canal ships 1.5 million barrels per day (bpd) of crude and the pipeline carries 1 million bpd. Together they account for nearly 3 percent of daily global oil demand. On Thursday, Egypt's Prime Minister Ahmed Shafiq said the Suez Canal was operating normally despite the unrest. Some oil-focused bankers and fund managers say that even if unrest in Egypt cuts flows along the strategic pipeline and the Suez Canal, the oil price spike would likely be short-lived and flows

would resume quickly, regardless of whoever is in power. OPEC members are comfortable with an oil price ranging between $90 to $100 a barrel, Atiqi said, adding the group could meet before their scheduled meeting in June if prices continued rising quickly above $110 a barrel. OPEC ministers and consumers will discuss oil output policy on the sidelines of an international energy conference in Saudi Arabia on February 22, but a formal decision there was unlikely, the OPEC secretary general had said. OPEC says it has spare capacity of 6 million barrels to meet lost output but would do it only when it sees a shortage in the market rather than speculator-driven rallies. Reuters

'India should focus to improve ties with Pak'

India closelipped on Samjhota probe: FO ISLAMABAD: Pakistan reiterated that India always promoted the propagation against Pakistan for sponsoring terrorism but fact is that it never has provided the investigation report of Samjhota Express Tragedy to Islamabad. These views were expressed by Foreign Office Spokesman, Abdul Basit while talking to state media here on Sunday. "India neither has disclosed the facts about Samjhota

Express Tragedy where lives of 42 Pakistanis were claimed and four years having being passed, nor has provided Islamabad with investigation report", Abdul Basit said. He said Pakistan is unaware that when Indian Government will arrest the culprits and when justice might be assured to 68 families of deceased 42 Pakistanis. How Indian authorities are dealing with this case, it is

less likely that faces of real culprits will remain undisclosed, as it doesn't seem if they have enough courage to tackle with Indian extremists holding links with some of the top Indian Army officials. He stressed that India must remove the differences between its ground realities and proclamations. He also urged that India will focus on improving its ties with neighboring countries instead of propagating against Pakistan. -Online

SDF to give $100mn for urea import ISLAMABAD: The Saudi Development Fund (SDF) would provide $100 million to the country for the import of Urea from Saudi Arabia. Saudi Development Fund singed a Finance Agreement to Export Urea for the production of Saudi Arabian Basic Industries Corporation (SABIC) to Pakistan. The agreement was signed by Sibtain Fazal Haleem, Secretary Finance Affairs and Engineer Yousef Ibrahim Al-Bassam, Vice Chairman and Managing Director. The agreement comes within the framework of the efforts made by the Fund to promote trade and economic relations between Saudi Arabia and Pakistan. -APP

19-point agenda

Raja Riaz announces sit-in LAHORE: Punjab Senior Minister and PPP leader Raja Riaz has announced sit-in and hunger strike today (Monday) after no positive response of the PML-N about the PPP 19-point agenda. According to media reports, Raja Riaz said that the PPP has not yet received any response of its letter wrote to PML-N Quaid Nawaz Sharif about the 19-point agenda. He said that the PPP was giving deadline to the PML-N from Monday that the PPP one provincial minister and MPA would stage sit-in and hunger strike outside Punjab Assembly daily for one hour if the PMLN does not make positive progress about 19-point agenda. -Online

LAHORE: Prime Minister Syed Yousuf Raza Gilani has said the re-sizing of federal cabinet is currently in consultation process. Talking to a nine-member journalists delegation here Sunday, he said the ministers' performance is not the only criterion to re-size the federal cabinet, as other aspects including constitutional provisions, budgetary constraints as well as coalition partners' share is also kept very much in view. He also made it clear that relieving of a minister doesn't mean that his/her performance is not satisfactory. To a question, he said that according to constitution, federal cabinet consists of 11 per cent of the parliamentarians with five per cent representation from the Senate, adding that they can resolve administrative and other matters in this regard at their own, however, they will move jointly on the legislative matters such as reconstitution of the Election Commission. All the coalition partners, he said, are being consulted and taken into confidence on cabinet issue. To another question, the Prime Minister said that they do not believe in 'deadline' in the politics, saying: "We (the politicians) are friends and not the masters of each others, and our coalition partners can approach us for any matter of

national interest." He added that they had accepted Nawaz Sharif's 10point agenda after reviewing it thoroughly, and nobody should doubt on our sincerity to pull the country out of economic crises. For the first time in Pakistan's history, he said, all the politician, while setting aside their party affiliation and patty differences, are united on all the matters of national importance including political stability, supremacy of the constitution and parliament, and strengthening of democracy. About Raymond Davis, the Premier said that it is a very sensitive issue, which should be resolved with maturity, adding, since the matter is sub judice so everybody should be careful about it, as Pakistanis are a responsible nation. While, the foreign countries are approaching Pakistan government in this regard through diplomatic and congressional channels, a proper way to settle down an issue amicably, he said, adding, we have advised them to contact the country's court as today our courts are working with great freedom. To a journalist's query, Gilani said that Pakistan's economy is now improving and this fact can be well judged from the facts that export ratio is doubled from that of last year; foreign reserves are all time high and now stands at $ 17.5 billion;

Axe looms large over Sindh Cabinet DEEN PUR: Senior Provincial Minister, Pir Mazhar-ul Haq Sunday hinted for rightsizing of Sindh Cabinet following the downsizing of Federal Cabinet. Addressing the public gathering and journalist in Deen Pur, he claimed Sindh Government is taking action against corrupt and dishonest officers in Education Department and said such culprits must have to face the music. He said government has directed the Education Department for ensuring the strict action against ghost teachers whereas government will strictly punish those officials who will not act against such culprits. He said upgrading the education system is the top priority of our government. Talking about the breaches of different bands including Tori Band, he said federal government has approved the funds for filling the breaches, which gov-

ernment would soon release. Sindh government will work on emergency basis once the funds are released, he said claiming that we will complete it before the next rainy season approaches. He said democracy has been strengthened due to reconciliatory policies of Asif Ali Zardari and assuring the solidarity of the party he was of the view we are working even harder for strengthening it after the responsibilities have fallen on the shoulders of Bilawal Bhutto Zardari. On arrival of provincial minister in Deen Pur, Junior School Teachers (JST) held protest against the Education Department for not disbursing their salaries from the last 11 months. Pir Mazhar ul Haq, while taking the notice, directed to release their salaries intimidating to suspend the concerning authorities if issue remained unsolved. -Agencies

stock exchange has jumped up from 5500 to 12500 points; the foreign remittances are almost doubled; food security of 75 percent country's population living in rural areas has been ensured and the growers are getting prices of their agri-produces according to international market. There was acute shortage of wheat-flour in the country, when PPP had come into power, but today Pakistan is exporting wheat despite the worst flood calamity that affected 20 million people and millions of acres fertile lands. The Prime Minister, however, stressed the need for enlarging the tax base by discouraging the tendency of tax evading and non-declaring of assets by individuals. The tax evading tendency in Pakistan has concerned the international community, which argues that how they can provide their taxpayers' money as assistance to Pakistan, while its own people do not pay the tax, he maintained. To a query, he said that yes, there are some vested interests and their lobbies working against the promotion of tax culture in Pakistan, and we have been in dialogue with leadership of all the political parties including PML-N, PML-Q, MQM, ANP, JUI and of the Fata to find ways and means to effectively end economic crisis. -Agencies

Davis shooting

Widow commits suicide LAHORE: The widow of one of the deceased shot dead by the US citizen, Raymond Davis committed suicide by taking poisonous pills, a private television channel reported Sunday. The report said Shamaila widow of Faheem took poisonous pills and was shifted to Allied Hospital, Faisalabad in critical condition. The doctor tried their best to save her life but she expired. The report citing sources said, "Shamaila had stated that she was committing suicide because she was not expecting justice in Raymond Davis case". On the other hand, the brother of Faheem said that the body of Shamaila was not handed over to the family despite their protest. After Shamaila's death, heavy contingent of police surrounded Allied Hospital and evacuated the ward whereas, Elite Force were deployed near the main gate of the hospital.-NNI

Govt asks people to return to work as protests hitting economy badly

Opposition says yes to Egypt reform-talk CAIRO: Egyptian Vice President Omar Suleiman held talks Sunday with opposition groups including the officially banned Muslim Brotherhood to try to find a way out of the country's worst crisis in decades. Footage broadcast by state television showed Suleiman chairing the meeting at government offices in central Cairo. Behind him hung a portrait of President Hosni Mubarak, whose three-decade rule the opposition wants to end. The talks marked Suleiman's first publicly announced meeting with Brotherhood members since Mubarak appointed him vice president last month. Participants also included members of secular opposition parties, a representative of opposition figure Mohamed ElBaradei and independents such as business tycoon Naguib Sawiris. Mubarak, 82, is refusing to step down, leaving his administration in a standoff with thousands of protesters who have set up camp in central Cairo. Suleiman -- Egypt's long-time intelligence

chief -- appears publicly at least to be ever more at the heart of mapping the nation's future. He also met youth representatives of the protesters. He praised their peaceful demonstration and urged them to go home to help the country return to work, according to Reuters' television footage of their meeting. Mubarak has said he will step down in September when his current presidential term ends. He has promised constitutional reform in the meantime. Many of the opposition parties, including the Brotherhood, had said they would not meet any government representatives before he left power. The Brotherhood said on Saturday it had the right to abandon talks if they were not going anywhere. Rashad Bayoumi, a senior Brotherhood member, spoke of "a positive atmosphere", during an interview with Al Arabiya television. Suleiman urged the Brotherhood last week to join the dialogue, calling it a valuable opportunity for the group which has survived decades of state efforts to crush it.

On Saturday, Suleiman met prominent independent and mainstream opposition figures to go through possible options for a transition of power. The group calling themselves "The Council of Wise Men", have proposed a compromise whereby Mubarak signs over his powers to Suleiman but remains in office in a ceremonial capacity. Furthermore, Egypt's government tried to get the nation back to work Sunday and people queued in Cairo when banks opened for the first time in a week as protests to force President Hosni Mubarak to quit entered their 13th day. Demonstrators camped out in Cairo's Tahrir Square, which has become an epicenter for protest, vowed to intensify their battle to oust Mubarak but the 82-year-old president has said he will stay until September elections because the alternative is chaos. With some Egyptians keen for a return to normal after unrest that the United Nations says killed 300 people, the government has warned of the damage to political stability

and the economy. "We want people to go back to work and to get paid, and life to get back to normal," army commander Hassan al-Roweny said. The Egyptian pound opened weaker against the US. dollar after the week-long bank closure. "The pound started off down as widely expected, but not with the magnitude one would have thought," one trader said. The United States, Egypt's ally which provides the army with $1.3 billion annually, has advocated the need for gradual change and political talks between the government and opposition groups on an orderly handover of power. Many shops have been closed during 12 days of protests and banks have been shut, making it hard for Egyptians to stock up on basic goods. Some prices have been pushed up, and economic growth, which was running at 6 percent, is expected to suffer. More than one million visitors, in Egypt for the beaches, the pyramids and to see artefacts from its ancient civilization, have fled the tumult which will seriously dent the nation's

important tourist sector. Outside banks, long lines of Egyptians queued at ATMs to withdraw cash from their accounts. Bank employees, who streamed in to work for the first time in days, took lists of names to deal with inquiries and try to prevent chaos. The central bank stated it has sufficient reserves to deal with any outflows, which could hit $8 billion in two weeks, the governor said, adding that Egypt had handled bigger outflows. The stock exchange is still closed because of the uncertainty. With signs of economic life starting to resume and political concessions from the government to the reform movement, some believe opposition to Mubarak's rule could start to melt away. Youths who used the Internet to mobilize mass support for change remain undeterred. ElBaradei said there was a "hard core" who would refuse to give up their protest in Tahrir Square and other places around Egypt until Mubarak steps down. -Agencies

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