The Financial Daily-Epaper-11-10-2010

International Karachi, Monday, October 11, 2010, Zul-Qa’dah 2, Price Rs12 Pages 12

Currency tug-of-war beats IMF big time

Kyrgyz voters go to polls

See on Page 12

Farzana delinks Watan Card with BISP

See on Page 12

Wrestling golds for Pakistan after 40 years

See on Page 9

See on Page 12

Deedar as NAB chairman stigma for Justice: Shahbaz

Economic Indicators $16.99bn 12.79% $5.18bn $9.03bn $(3.85)bn $(944)mn $1.72bn $267.10mn Rs 185bn $55.63bn Foreign Debt (Jun 10) Rs 4705.40bn Domestic Debt (Jul 10) $100.90mn Repatriated Profit (Jul- Aug 10) 3.05% LSM Growth (Jul 10) 4.10% GDP Growth FY10E $1,051 Per Capita Income FY10 170.74mn Population

Forex Reserves (1-Oct-10) Inflation CPI% (Jul 10-Aug 10) Exports (Jul 10-Sep 10) Imports (Jul 10-Sep 10) Trade Balance (Jul 10-Sep 10) Current A/C (Jul 10- Aug10) Remittances (Jul 10-Aug 10) Foreign Invest (Jul 10-Aug10) Revenue (Jul 10-Aug10)

‘N’ warns to play long march card

Portfolio Investment SCRA(U.S $ in million)

46.01 -3.21 0.15 2353

Yearly(Jul, 2010 up to 07-Oct-2010) Monthly(Oct, 2010 up to 07-Oct-2010) Daily (07-Oct-2010) Total Portfolio Invest (1 Oct-2010)

NCCPL (U.S $ in million)

FIPI (06-Oct-2010) Local Companies (06-Oct-2010) Banks / DFI (06-Oct-2010) Mutual Funds (06-Oct-2010) NBFC (06-Oct-2010) Local Investors (06-Oct-2010) Other Organization (06-Oct-2010)

0.38 -0.94 0.12 -0.29 0.23 0.71 -0.21

Global Indices Close

Change

KSE 100

Index

10,260.48

68.80

Nikkei 225

9,588.88

95.93

Hang Seng

22,944.18

59.86

Sensex 30

20,250.26

65.06

2,738.74

83.08

SSE COMP. FTSE 100

5,657.61

4.52

Dow Jones

11,006.48

57.90

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 2.60 111.41 18.10 155.12 2.00 42.85 1.70 36.42 9.67 33.15

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)

12.83% 13.07% 13.22% 13.50% 12.89% 13.02% 13.22% 13.61% 13.71% 13.83% 13.92% 13.99% 14.23% 14.38% 14.58%

06-Oct-2010 06-Oct-2010 06-Oct-2010 29-Sep-2010 08-Oct-2010 08-Oct-2010 08-Oct-2010 08-Oct-2010 08-Oct-2010 08-Oct-2010 08-Oct-2010 08-Oct-2010 08-Oct-2010 08-Oct-2010 08-Oct-2010

Commodities Crude Oil (brent)$/bbl 84.03 Crude Oil (WTI)$/bbl 82.66 Cotton $/lb 107.17 Gold $/ozs 1,345.30 Silver $/ozs 23.11 Malaysian Palm $ 901.30 GOLD (NCEL) PKR 36,839 KHI Cotton 40Kg PKR 7,663

Open Mkt Currency Rates Symbols

Buy (Rs)

Australian $ 84.60 Canadian $ 84.30 Danish Krone 15.40 Euro 118.70 Hong Kong $ 11.10 Japanese Yen 1.018 Saudi Riyal 22.95 Singapore $ 65.05 Swedish Korona 12.90 Swiss Franc 88.45 U.A.E Dirham 23.40 UK Pound 135.10 US $ 86.30

Sell (Rs)

85.10 84.60 15.60 119.10 11.40 1.044 23.10 65.15 13.30 89.30 23.60 136.10 86.60

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

84.33 84.32 16.04 119.56 11.04 1.031 22.84 65.57 12.86 88.67 23.32 136.15 85.70

84.52 84.51 16.07 119.84 11.07 1.033 22.89 65.72 12.89 88.88 23.37 136.47 85.88

Weather Forecast CITIES

ISLAMABAD KARACHI LAHORE FAISALABAD QUETTA RAWALPINDI

MAX-TEMP

33°C 34°C 35°C 36°C 30°C 34°C

MIN

18°C 26°C 23°C 22°C 8°C 20°C

Subscribe now Tel: 92-21-5311893-6 Fax: 92-21-5388428 Email: editor@ thefinancialdaily.com

www.thefinancialdaily.com

PESHAWAR: Tankers carrying fuel for Nato cross Torkham border into Afghanistan.-Reuters

Pakistan positive to get remaining $1.8bn from IMF

New loans to cut old debts KARACHI: In a surprising move, Government has resolved to get new loans to pay off previous borrowings, while it is confident to get the remaining $1.8 billion amount of standby loan from IMF. According to the details revealed in the media, Government has decided to talk to the lender of the last resort for new lending programme in order paying off tranches of previously sought loans which would start next year, the decision was taken in fear that government might not manage to pay on time despite surging the power tariff by 60 per cent.

On the other hand, Government is positive to get remaining amount of the standby loan in December, as the Government claims it has

made substantial progress on conditionality to qualify for the review early next month.

Secretary Finance Salman Siddiq while talking to the media said that government had already initiated power sector reforms after preparing a workable plan in consultation with the World Bank and the Asian Development Bank.

He said that Deputy Chairman Planning Commission - who is also included in the delegation -would inform Fund of power sector rehabilitation plan.

He further said that second commitment with the IMF was the introduction of the reformed General Sales Tax (GST) that is already in process as draft law is almost ready, and hopefully would be implemented from November. -Agencies

Cotton prices surge as int’l production decreases

BT cotton can save Rs90bn/yr: PCGA ISLAMABAD: Country can save up to Rs90 billion per year, if cultivation of BT cotton is formally sanctioned, this was said by executive member of Pakistan Cotton Ginners Association (PCGA) Ehsan-ul Haq while talking to a private TV channel.

He said that Pakistan would not have to import cotton if BT cotton is formally permitted.

He said the cotton crop enhanced by 100 per cent per acre in the foreign countries, because BT cotton was cultivated there, adding the government sanctioned growing BT cotton last year; but, this was not a formal decision and was subsequently re-banned.

Furthermore, cotton prices

stared increasing internationally after the news of lesser production than the total estimates. Per 40-kg price exceeded Rs8,000 in the New York Cotton Exchange.

Local cotton prices also witnessed an increase after the international increase.

Per 40-kg price of cotton went up by Rs100 in the local market to reach Rs7,200 in Punjab and Rs7,300 in Sindh, news channel reported.

A week ago, the international cotton prices were less than that of the local prices.

However, bullish trend was seen after the reports of reduced cotton production by American Agriculture Department. -Agencies

PR demands Rs2bn for its ‘locomotion’ Federal Minister for railway, Ghulam Ahmad Bilour has said that he has demanded for Rs2 billion to government in order to get out of order railway locomotives fix and get the railway out of loss.

He said Railway is paying Rs4 billion as interest to State Bank on Rs40 billion debt and if soon concrete measures would not be taken to revive the railway, it would become impossible to retrieve. He said that railway has been neglected during previous government regime as billions were spent on land purchase for motorway and roads but not even a single penny was spent on railway, holds 60 thousand acre land and 80 thousand employees associated to it.

ISLAMABAD:

The Federal Minister for Railways, Haji Ghulam Ahmad Bilour has said that Railways See # 10 Page 11

7 killed in NWA drone hit MIRANSHAH: A US drone strike killed seven militants at a compound in tribal North Waziristan region on Sunday, security officials said.

The compound was located by a road in Shewa district about 40 kilometres (25 miles) northeast of the region's main town of Miranshah.

The drone fired four missiles at the compound and two vehicles parked outside were also destroyed, an intelligence official in Miranshah told foreign media.

"At least seven militants were killed and three wounded," a security official in Peshawar told, raising his earlier casualty assessment.

The casualties were confirmed by two other intelligence officials in Miranshah. Agencies

LAHORE: Federal Government and Provincial Government of Punjab at daggers drawn over the appointment of Deedar Hussain Shah as new chairman of National Accountability Bureau, where PML-N has threatened the government with another longmarch.

Addressing the Watan Card distribution ceremony, Chief Minister Punjab strongly opposed President Zardari's decision of bringing Deedar as NAB chief, added PML-N would take out 'long march' if decision is not retracted.

Chief Minister Shahbaz Sharif has also lamented government behaviour regarding the appointment of NAB chief.

Shahbaz said "I have no personal grudge with newly appointed NAB chairman Justice (Retd) Deedar Hussain Shah, but here the matter is accountability and justice."

‘N’ bid is welcome: Awan LAHORE: Federal Minister for Law and Parliamentary Affairs, Dr Babar Awan while speaking at a press conference in Lahore Sunday said PPP would welcome the long march and urged the Punjab government to end playing politics of turncoats, added that conspirators would have to face humiliation and defeat again.

Expressing his strong chagrin of this PML-N notion, while talking to media in Lahore, he invited PML-N's suggestion for any possible alternate over the matter, comparing the recent NAB appointment, with that of previous PML-N appointment of Saif-ur Rehman, whom Babar Awan termed as an inappropriate person. He said that PML-N had no specific criteria defined for appointment of a NAB chairman. Strongly berating Nawaz Sharif, he demanded Mian Sharif's justification of use of official See # 6 Page 11 CM Punjab declared the accountability authority in the appointment of Deedar Hussain country. as being quite detrimental to Terming Deedar appointment integrity of nation. as a stigma on justice and fairHe wondered that how a PPP ness, he cautioned President loyalists would act vis-à-vis Asif Ali Zardari to heed to realSwiss cases. ities, since Pakistan was standCM Punjab maintained ing at critical juncture of its hisJustice Javed Iqbal had been tory, and required immediate elected to Senate on PML-N return of laundered Swiss Bank ticket and hence he was also See # 7 Page 11 not suitable to head the

Restructuring of housing rules, HBFC advised

Up mortgage funds, WB tells Pakistan ISLAMABAD: World Bank has expressed its concerns over the sharp shortage of lodgings, and unhealthy living conditions in Pakistan urged the government to rewrite housing regulations, and raise funding to boost mortgage finances.

World Bank has also asked the government of Pakistan to restructure House Building Finance Corporation (HBFC).

This was expressed by World Bank in its latest report titled 'Housing Finance in South Asia'.

The report commented that country misses low-cost housing facilities due skyrocketing

interest rate, higher realty rates, and diminishing incomes.

The average national tenancy rate per home is above six; density per room is 3.5 people, compared with the international standard of 1.1 per room, report stated.

The report also emphasised for rewriting of housing regulations, improving the dependability of land administration, record, and streamlining property taxes, and promoting longterm funding to boost the overall demand for and supply of mortgage finance.

See # 8 Page 11

Company inks $1bn deal with Beijing

GDF Suez in LNG talks with Pakistan China to get 2.6 MT natural in 4 years SHANGHAI: GDF Suez SA signed an agreement to supply 2.6 million tonnes of natural gas to China National Offshore Oil Corp (CNOOC) over four years starting from 2013, Chairman Gerard Mestrallet said in Shanghai.

"China will become an extremely important actor in terms of LNG development in next decade," Mestrallet told reporters. "China is a core mar-

ket to us."

The deal is worth more than $1 billion, Wang Jiaxiang, assistant president of CNOOC told reporters, adding that a medium-term contract can help the company to diversify its supply sources and avoid risks.

GDF is in talks with Pakistan on natural gas supply, Mestrallet said, without giving details. GDF aim to increase See # 9 Page 11

Pakistan hails Kabul-Taliban parleys: Kaira LALAMUSA: Federal Minister for Information and Broadcasting Qamar Zaman Kaira has said Pakistan welcomes peace talks between Afghan government and Taliban.

Talking to newsmen after inauguration of Gas at Khokar Gharbi here on Sunday, he said that Pakistan welcome Afghan government policy for peace talks with Taliban and denied of becoming part of that negotiations.

To a question about the appointment of Chairman NAB, he admitted that he had the elegance with PPP in the past. He said the task of NAB is to investigate the case. -NNI

My war on ‘corrupt ‘ will go on: Altaf Hussain Staff Reporter KARACHI: MQM Chief Altaf Hussain says that he would continue his fight against the corrupt political system till it is revolutionised.

Speaking over the telephone to a gathering of Khidmat-e-Khalq Foundation in Karachi, he said that MQM does not interpret politics in terms of power and vested interests.

See # 11 Page 11

Delegates at GCC ministers’ moot say stocks a bit high but market balanced

Opec mayn’t revise oil pumping target KUWAIT: Opec is unlikely to change its oil output target when it meets in Vienna next week, delegates told Reuters on Sunday, while Qatar said current oil prices posed no harm to the global economy.

The 12-member producer group meets on October 14 and oil ministers' comments ahead of the gathering suggested the outcome would be no change.

Speaking to reporters at a meeting of Gulf Cooperation Council oil ministers in Kuwait, Qatar's Oil Minister Abdullah bin Hamad al-

Attiyah said "so far" he saw no change in Opec's output.

Another Gulf delegate, who asked not to be named, also said there was unlikely to be a change in the production target at the Vienna meeting.

"Stocks are a little bit high, the market is balanced, the price is good," the delegate told Reuters, with the proviso that it was still down to ministers to agree final policy at the Opec meeting itself.

US crude for November settled at $82.66 a barrel on Friday, having gained 1.32 per cent on the week.

"The current price is not harmful to the global economies," Qatar's Attiyah later told Reuters.

The oil price has stayed within a range of around $70$85 a barrel for the past year - judged by many in Opec to be high enough for producers who need to invest and low enough not to damage the world's economy.

Opec has not officially changed production policy since December 2008 when it responded to a price crash and a recession with its deepest ever supply cut.

Though official policy is unchanged, members' compliance with output targets slid to as low as 50 percent this year from 80 percent in April 2009.

Crude oil prices, which tumbled from historic highs of more than 147 dollars in July 2008 to about 32 dollars in December of that year in response to the global recession, have since clawed back on economic recovery hopes.

"We do not see much scope for sustained gains and the rally is likely to exhaust itself once attention turns back to

fundamentals (of supply and demand)," said Andrey Kryuchenkov, an analyst at financial group VTB Capital.

Opec comprises 12 members -- Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.

Iraq, the only member without a production quota owing to the country's unrest, last week it announced a sharp rise in its proven oil reserves.

The new figure of 143.1 billion barrels represents a 24 per cent increase over the pre-

vious estimate but still leaves it ranking behind Saudi Arabia and Venezuela in terms of known reserves, according to Opec.

Experts say a significant hike in Iraq's oil output is far from certain.

"From the start of 2010, oil prices have been remarkably stable, anchored in the 70-80 dollar range," noted analysts at Credit Agricole.

"This range appears to satisfy every one, producers and consumers, and to be actively defended by Opec members. Agencies

2

Monday, October 11, 2010

Watan cards given to 0.18mn families

KARACHI: President Asif Ali Zardari given 34th FPPCI Best Export Performance Award 2009-2010 to Senator Gul Mohammed Lot during award distributing at ceremony.-Online

Kamal Azfar appointed PM advisor ISLAMABAD: Cabinet Division has issued the notification of the appointment of Kamal Azfar Adviser to the Prime Minister.

According to the notification issued here on Sunday, Kamal Azfar has been designated as Advisor to the Prime Minister on Disaster Management with the status of Federal Minister.-APP

MONDAY Time Programmes 8:00 Agenda 360 (Rpt) 9:00 News 9:15 Pehla Sauda 10:00 News 10:15 Bazaar 11:00 News 11:05 Ghar Ka Kharch 12:00 News 12:05 Agenda 360 (Rpt) 13:00 News 15:15 Power Lunch 14:00 News 15:02 Akhri Sauda 15:30 Amnay Samnay (Rpt) 16:15 Karobari Dunya 17:05 Ghar Ka Kharch 18:05 Chai Time 19:00 News 19:05 Tax Time 19:30 Mang Raha Hai Pakistan 20:00 News 20:05 Islamabad Say 21:00 Pakistan Aaj Raat 22:00 News 22:05 Doosra Pehlu 23:00 News 23:05 Uff Tv (Rpt) 23:30 Dilkash Pakistan (Rpt)

TV PROGRAMMES

World urged to write off Pak debt LONDON: The international community has been urged to write off Pakistan's debt as it was the best way to reward the country for its front line role in the war against terror as well as to help recover it economically from the devastating floods.

Speaking at a charity fund raising dinner for the flood victims of Pakistan here last night, Chairman Senate, Farooq Naek, appealed to the donor countries, international financial institutions and relevant international organizations, the private sector and civil society to extend their full support and assistance to Pakistan to enable it recover quickly from debilitating effects of the floods.

The event was arranged by "Umeed" charity which has partnered with global

humanitarian organisation Oxfam to supply vital medication to one thousand flood affected villages in Pakistan for six months.

The Chairman of the Upper House spoke of Pakistan's enormous contributions in the war against terror and said the country is fighting this war for the civilised world.

We are committed to fight against terrorism despite many challenges. We are not counted by threat of the terrorists despite the fact we lost our great leader Shaheed Mohtarma Benazir Bhutto as well as thousand of civilians and brave soldiers. "Today after what we have done for the world, what sacrifices we have given, it is high time for the world to come forward and help the Pakistani nation in the catastrophe they are facing in the shape of flood

disaster."

Naek called for a swift action to mitigate adverse impacts of the floods and said this could be achieved by writing off or rescheduling Pakistan's debt, providing market access to revive the national economy and invest in medium and long term rehabilitation and reconstruction projects.

He emphasised that though the relief efforts were underway, the global community had to come forward to reinforce the relief, reconstruction and rehabilitation efforts of the Pakistan Government.

Quoting figures, Naek spoke of the ferocity of the floods and said the country had never been struck by such a colossal natural calamity which submerged area the size of England.-APP

Hajj flights take off today ISLAMABAD: The one month pre-Hajj flight operation to take around 160,000 intending pilgrims to Saudi Arabia would start from today.

The inaugural flights would take off from Islamabad and Peshawar at 6:30 pm and 11:20 pm respectively, while regular flights from other cities of the country would start from Oct 12 under both the government and private schemes.

Official sources in the Ministry of Religious Affairs talking to APP on Sunday expressed confidence that the pre-Hajj flight operation would be completed in accordance

with the given schedule.

They claimed that the ministry has made elaborate arrangements to facilitate Pakistani pilgrims in Saudi Arabia, adding that this year medicines worth Rs24 million would be provided at medical centers established in Makkah and Madina to ensure medical cover to Hujjaj.

They said Pakistan International Airlines and Saudi Airlines have been given the mandate to ensure smooth and timely conduct of the operation.

Islamabad, Karachi, Lahore, Peshawar, Quetta, Sialkot and Multan would be used as international gateways for Hajj flights to

Jeddah and Madina and vice versa, while Faisalabad, Rahimyar Sukkur would be used as feeder airports unless airlines operation small aircraft from these stations, according to the Hajj policy 2010.

The PIA has requested the pilgrims to clearly write their complete names, address on their suitcases so that they could easily be identified during the travel. Each pilgrim would be allowed free baggage up to 32Kg and hand carry not exceeding 7Kg. Excess baggage, if any would be charged from passenger at the rate of 15 Saudi Riyals per Kg.-APP

MONDAY Time 7:00 8:00 9:05

Programmes News News Subah Savere Maya ke Sath 11:10 The Reema Show (Rpt) 12:00 News 13:10 Faisla Aap Ka (Rpt) 14:10 Tafteesh (Rpt) 15:00 News 16:00 News 17:30 Samaa Metro 18:00 News 18:30 Samaa Sports 19:30 Crime Scene 20:03 Newsbeat 21:00 News 22:03 Tonight With Jasmeen 23:00 News 23:30 24

KARACHI: Special Assistant to Sindh Chief Minister Waqar Mehdi has said that Watan Cards have been issued to a total 185,000 flood affected families in the province.

He said the process to issue Watan Card is being rapidly carried out, according to a statement issued here Sunday.

He said a sum of around Rs2.75 billion have been distributed among the flood affected, through Watan Card Rs 20,000 are being paid to each flood victim family.

Waqar Mehdi said the flood affected families are being issued Watan Cards from 26 NADRA centres across the province.

He said total 20,856 Cards have been issued in Karachi, 6500 in Badin, 4000 in Ghotki, 2000 in Matiari, 10,000 in Hyderabad, 2000 in Jacobabad, 25,000 in Thatta, 3000 Kandhkot, 13,500 in Khairpur, 8000 in Jamshoro, 20,000 in Larkana, 2000 in MeharDadu, 2000 in Shaheed Benazirabad, 1500 in Nausheroferoz, 55,000 in Sukkur, 255 in Shahdadkot, 12,000 in Shikarpur and 271 in Tando Muhammad Khan.-APP

Pir Illahi Bakhsh remembered KARACHI: The 35th death anniversary of a leader of Pakistan Movement and a former chief minister of Sindh, Pir Illahi Bakhsh, was observed here in a befitting manner.

A statement of the Pir Illahi Bakhsh Foundation Karachi on Sunday said that a seminar was organized on the occasion at the premises of Sindh Assembly.

Pir Illahi Bux memorial shields and certificates were distributed among the position holder students from all over Sindh.

In his speech on the occasion, Sindh Education Minister Pir Mazhar-ulHaq pointed out that Pir Illahi Bakhsh, who was an associate of Quaid- iAzam Muhammad Ali Jinnah, belonged to the middle class of the society.

Mazhar said that Pir Illahi Bakhsh acquired higher education and on the basis of his abilities became education minister and later served as the chief minister of Sindh.

He asked the youngsters to serve the country with the same dedication and spirit.

Sindh Minister for Industries, Abdul Rauf Siddiqui, said that the birth and death anniversaries of Pir Illahi Bakhsh should be marked at official level.

Provincial Ministers, Syed Sardar Ahmed and Dr Mohan Lal, Senator Abdul Haseeb Khan and Chairman of the Board of Intermediate Education Karachi, Prof Anwar Ahmed Zai, in their speeches paid rich tributes to Pir Illahi Bakhsh.

Chairman of Pir Illahi Bakhsh Foundation, Pir Abdul Rashid, General Secretary, Ali Asghar, also expressed their views on the occasion.-APP

Rs1bn developmental projects on the card

Projects worth Rs2bn to curtail pollution KARACHI: At least 12 mega projects with an envisaged cost of Rs2 billion will be launched by the City District Government Karachi (CDGK) to contain the noise and air pollution.

This was stated by Sindh Minister for Environment and Alternative Energy, Shaikh Mohammed Afzal while talking to APP during a visit to Landhi and Korangi on Sunday.

He said that all these projects were being coordinated with the assistance of the provincial government and added that these projects would be influential to check air and noise pollution in the metropolis.

He said that a flyover

would be constructed at Korangi Crossing at the estimated cost of Rs350 million. New flyovers would be constructed at Ibne Sina Road, Korangi Nallah and Gujjar Nallah and the cost is estimated to be about Rs200 million.

Other flyovers and road construction projects would also be initiated, he said.

The City District Government Karachi (CDGK) is initiating new development projects worth about Rs One billion from the next week.

This was stated by the Administrator of the CDGK, Fazal-ur-Rehman, while chairing a meeting

PHMA pays homage to Jamil Siddiqui KARACHI: Pakistan Hosiery Manufacturers & Exporters Association (PHMA) will be paying homage and tribute to late Jamil Ahmed Siddiqui, senior reporter The Financial daily on 11th October (today) after the Mintex meeting with All Textile Associations to be chaired by Minister for Textile Industry, Rana Muhammad Farooq Saeed Khan who will also participate in this solemn event at PHMA House.

Remembering the deceased reporter, PHMA official said that it was indeed matter of great shock and grief for all of us at the sudden tragic

passing away of Jamil Ahmed Siddiqui on the night of 2nd October. May his soul rests in eternal peace.

We will always fondly remember Jamil Ahmed Siddiqui who was a senior and veteran journalist, a tough professional with an enviable and commendable track record in journalism, deeply involved in his profession with utmost dedication and great enthusiasm. We are indeed proud of having been associated with Jamil Ahmed Siddiqui for the past almost fifteen years. He always served his energies towards the national interests selflessly.-PR

here on Sunday.

He said that these include two flyovers and three big road projects.

The Administrator further informed that consultant has been appointed for making Shaheed-i-Millat and Sharah-i-Quaideen signal free.

Executive District Officer Works and services, Rasheed Mughal, gave a briefing about the new projects.

The Administrator directed that the work on making Shahrah-i-Quaideen be initiated in a weeks time. A flyover would be constructed on PIDC Chowrangi at an estimated cost of Rs220 million.-APP

UNESCO delegation visits Makli THATTA: A delegation of UNESCO led by Michel Jennies visited the Makli archeological site here on Sunday.

The delegation was accompanied by UNESCO National Programme Officer in Pakistan Farhat Gul. The delegation visited Makli monuments and archeological sites. Sindh Minister for Culture Ms Sassui Palijo and DCO Thatta Jaffar Abbasi briefed the delegation about the historical importance of Makli.

They said that Makli necropolis is already declared as one of the preserved and protected archeological sites in the world heritage.-APP

RAWALPINDI: Federal Minister for Railways Ghulam Bilour cutting the ribbon to inaugurate Steam Safari Tourist Train in Rawalpindi Railway Station.-Online

Drive against ticketless travelers earns PR Rs18mn KARACHI: Pakistan Railway, Karachi Division, earned over Rs18.929 million during the campaign carried out against ticketless travelling on the directive of Divisional Superintendent Aftab Ahmed Memon during the last three months.

According to Divisional Commercial Officer Kamran Saeed, the highest earning of Rs7.4 mil-

lion was made during the month of September when raiding commercial staff nabbed 15,777 ticketless passengers.

He said that 15,040 passengers were caught while travelling without ticket during July and 12, 241 during August and Rs6.460 million and Rs 5 million recovered respectively for the two months.

He said that raids were conducted both on Up and

Down trains and two STEs were placed under suspension for their alleged involvement in the ticketless traveling.

According to Divisional Superintendent Aftab Memon, the campaign against ticketless travelling menace is a continuous process and that the surprise raids are conducted to nab and discourage the passengers travelling without ticket.-APP

Two LeJ activists rounded up KARACHI: Sindh Provincial Minister for Tourism Shazia Marri distributing medals among the position holders 6th National Women Karate Championship.-ONLINE

KARACHI: The Karachi police have arrested two alleged activists of banned Lashkar-e-Jhangvi (LeJ) from Orangi Town area and recovered illegal weapons from their possession.

Addressing a press conference here Sunday at the Central Police Office, Capital City Police Officer

(CCPO) Fayaz Leghari said that the accused were involved in several cases of sectarian killings and that of doctors in target killings.

He identified the alleged terrorists as Nasim Haider alias Firhoun s/o Ghulam Haider and Asif Rasheed alias Dunba s/o Haroon

Rasheed. Both the accused were arrested from Orangi Town, Block-D sector, after an encounter with the police on Saturday night, the CCPO said.

He said that the police recovered several rounds of live bullets and SMGs from their possession adding that both the accused were

wanted in several other cases registered with Iqbal Market police station.

The CCPO elaborated that so far this year 32 cases of target killings have occurred and admitted that there are lacunas which are being improved with the assistance of the judiciary.-APP

3 Monday, October 11, 2010

Asian currencies

Mostly surges for 6th week on Fed easing hopes BANKOK: Asian currencies rose for a sixth week, the longest winning streak in a year, on speculation the Federal Reserve will pump more money into its economy, increasing funds available to invest in higher-yielding assets.

The currencies retreated from their highs on concern regional central banks will intervene or introduce measures to stem gains.

Thailand's baht fell from a 13-year high, dropping 0.7 per cent to 30.08 per dollar in Bangkok on Friday and trimming its five-day appreciation to 0.5 per cent. South Korea's won declined 0.5 per cent to 1,120.15, paring its weekly gain to 0.9 per cent.

"The basic trend remains for Asian currencies to strengthen due to fund inflows and the economic growth story," Tohru Nishihama, an economist at Dai-ichi Life Research Institute Inc. in Tokyo, said in an interview. "Given the very fast appreciation in regional currencies recently, we may see intervention from some central banks."

Thailand's Prime Minister Abhisit Vejjajiva said the Cabinet will consider measures this

Dollar net shorts jump to $30bn: CFTC NEW YORK: Currency speculators boosted bets against the dollar to $30 billion in the latest week, the largest value since at least mid-2008, data from the Commodity Futures Trading Commission showed on Friday.

The value of the dollar's net short position rose to $30.5 billion in the week ended Oct. 5, compared to a net short of $22 billion the previous week, according to Reuters and CFT calculations.

Currency speculators further boosted bets in favor of the euro, with long positions reaching 48,243 contracts, the highest since at least October 2009, according to Reuters data. Net long positions in the yen, Swiss franc and the Canadian dollar also increased in the latest week. Speculators also reversed bets against sterling, the CFTC data showed. -Reuters

Corn, wheat, soy close limit up on poor harvest CHICAGO: US corn, soybean and wheat futures rose their daily trading limits -- the first time all three commodities have so on the same day since August 2008 -- after the US Department of Agriculture on Friday slashed its estimate of this year's harvest, traders said.

USDA pegged the 2010/11 corn crop at 12.664 billion bushels, based on the average projected yield of 155.8 bushels per acre -well below the average analyst estimate of 12.960 billion bushels in production and 160.0 bushels per acre in yield.

CBOT December corn futures rose 30 cents to $5.28-1/4 a bushel. The 6 per cent gain was the biggest for the front-month corn contract since rising 9 per cent on June 30. CBOT November soybeans gained 70 cents to $11.35 a bushel, a gain of 6.6 per cent. The last soybean rally bigger than in percentage terms was a 6.7 per cent jump on July 30, 2009.

CBOT December wheat settled up 60 cents at $7.19-1/4 a bushel.

The 9.1 per cent gain was the biggest daily percentage jump since a 9.2 per cent increase on Sept. 15, 2009. -Reuters

week to help reduce the impact from the baht's strength. Japan last month intervened in the foreign-exchange market for the first time in six years to rein in yen gains. Regulators in South Korea are due to start an audit of lenders handling currency derivatives on Oct. 19.

Overseas investors have pumped more than a net $37 billion into Indian, South Korean and Taiwanese equities this year, according to exchange data.

Taiwan's dollar completed a sixth weekly gain after the government Oct. 7 reported an 11th straight increase in monthly exports for September.

The yuan gained 0.3 per cent to 6.6734 from Sept. 30, the last trading day before a weeklong holiday. It touched 6.6703, the strongest level since the central bank unified official and market exchange rates at the end of 1993.

Malaysia's ringgit dropped 0.9 per cent last week to 3.1105 per dollar. Singapore's currency gained 0.1 per cent to S$1.3111 and the Philippine peso climbed 1 per cent to 43.445. Indonesia's rupiah fell 0.2 per cent to 8,938. -Agencies

C$ rises despite Canadian job losses TORONTO: The Canadian dollar rallied versus the US dollar on Friday as disappointing US jobs data prompted traders to look past reports showing weakness in Canada's housing and labor markets.

The Canadian dollar initially dipped on a report showing the country's economy unexpectedly shed 6,600 jobs in September, but the currency turned around as investors digested a report that US employers cut 95,000 jobs during the month.

The US losses, which compared with expectations that payrolls would remain unchanged, spurred speculation that the US Fed would turn to quantitative easing to stimulate the economy, which would further reduce the yield on US debt.

The Canadian dollar finished at C$1.0113 to the US dollar, or

98.88 US cents, gaining in the final hours of trading as volumes dried up ahead of the Canadian Thanksgiving long weekend.

The closing level was up from Thursday's close of C$1.0185 to the US dollar, or 98.18 US cents.

Higher prices for commodities such as oil, copper, and gold -also helped spur the currency, bringing it in range of reaching parity with the US greenback.

For the week, the currency rose 0.8 per cent, its sixth-straight week of gains, helped by recovering commodity prices, expectations of rising interest rates, and the US greenback's weakness.

Economists said the details in the Canadian jobs data were not as soft as the overall loss of jobs would suggest, but the data was still sufficient to keep views steady that the BoC will refrain from raising interest rates later this month.-Reuters

Sugar rallies, near key 30 cent level NEW YORK/LONDON: Sugar futures rallied on Friday as funds bought aggressively in a market concerned about shipping problems in Brazil and bad weather in other producing countries, while coffee and cocoa also surged as commodities rallied on a weak dollar.

New York's key March raw sugar futures rose 1.16 cents or by 4.61 per cent to end at a 1-1/2 week high at 26.32 cents per lb.

The contract had risen over 10 per cent in the last two sessions.

London's December white sugar contract added $27.80 or by 4.3 per cent to finish at $677.60 per tonne, having hit a lifetime peak and 8-month top at $686.40.

The market was concerned about tight global supplies as a long line of ships kept waiting to load sugar at Brazilian ports.

Shipping agent Williams said that as of Wednesday, the line stood at 108 vessels, unchanged from the prior week.

The International Sugar Organization said it expected white sugar supplies to remain tight in the coming 10 months.

"Export availability is practically equal to import demand and in the case of any unforeseen reductions in production...

the market may face a physical supply deficit in the white sugar segment," the ISO said in a report published on Friday.

Coffee futures rallied on investor buying, with an improved technical outlook giving bean values a boost.

Dealers said both arabica and robusta markets looked well underpinned at current levels and arabicas could head back toward the 13-year high of $1.9865 a lb touched last month, depending on outside influences including currency.

New York's December arabica coffee contract climbed 8.70 cents or by 5.06 per cent to settle at $1.8215 per lb. It was the biggest one-day move for coffee since late August, according to Thomson Reuters data.

London's January robusta coffee futures gained $34 to settle at $1,687 per tonne.

In cocoa, dealers eyed any updates on the extent that crop disease black pod is damaging Ivory Coast beans.

London's March cocoa contract added 30 pounds to finish at 1,892 pounds per tonne. New York's December cocoa contract gained $63 or 2.3 per cent to close at $2,803 per tonne. Reuters

NY cotton ends near limit up, may push up NEW YORK: Cotton futures settled on Friday at its highest level in 15 years on investment fund and Chinese mill buying combined with a bullish US government crop report.

Values may push past the alltime record in the days ahead, analysts said.

Cotton surged before the US Agriculture Department published its much anticipated monthly supply/demand report earlier Friday, but the market took off after the USDA's cotton figures came out.

China provided the catalyst.

USDA sliced its estimate of China's 2010/11 cotton production by 1.0 million (480-lb)

bales to 31.5 million, upped its Chinese import forecast to 13 million bales from 12.75 million and dropped its ending stocks forecast for the world's No. 1 consumer to 14.72 million from 16.01 million bales.

Sharon Johnson, cotton expert at First Capitol Group in Atlanta, said sheer momentum should move the market up next week although she is cautious that fiber contracts are getting overextended to the topside.

ICE Futures US benchmark December cotton contract climbed the 4.00-cents limit to trade at $1.0775 per lb, the highest level in 15-years.

The contract gained 3.42 cents

up, a gain of 3.3 per cent on the day, to finish at $1.0717 per lb.

The session low was at $1.045.

On the week, December cotton futures are up almost 10 per cent.

The next three nearby months climbed the limit before pulling back at the close of trade.

Total volume traded stood at over 31,000 lots at 1915 GMT, more than two-thirds above the 30-day average around 18,000 lots, preliminary Thomson Reuters data showed.

Open interest in the cotton market has remained above 231,000 lots since midSeptember and stood at 232,123 lots as of Oct. 7, ICE Futures US data showed. -Reuters

Sterling logs gains for week vs dollar LONDON: Sterling rose against the dollar for the week and was little changed against the euro, while UK government bonds surged for a third week after reports showed slowing British economic growth and higher-than-expected US job losses, stoking investor demand for the safest assets.

The pound on Friday surged against both currencies after the US payroll data. The ECB signaled no intention to loosen monetary policy on Oct. 7.

ECB President Jean-Claude Trichet said there's "absolutely no change" in the central bank's stance from a month ago and that it will continue to gradually phase out so-called nonstandard liquidity measures.

"The whole story of last week has been broad dollar weakness, rather than a pound-specific story," said Lee Hardman, a foreign-exchange strategist at Bank of Tokyo- Mitsubishi UFJ Ltd. in London. "The market has continued to price in expectations of aggressive quantitative easing from the Fed, and the Bank of England is perceived to be in the same relative position."

Sterling climbed 0.7 per cent against the dollar last week to trade at $1.5945 as of 5 p.m. on Friday in London, its strongest in two months. It depreciated 0.1 per cent to 87.29 pence per euro, close to its highest in five months, and fell 0.2 per cent to 130.60 yen.

The National Institute of Economic and Social Research said the UK's pace of growth more than halved in the third quarter. The Bank of England left interest rates at a record low two days ago and maintained bond purchases amid speculation it will step up such socalled quantitative easing to stimulate the economy.

UK government bonds rose 0.5 per cent to close at 115.49, driving the 10-year yield 6 basis points lower to 2.86 per cent as of 5 p.m. in London.Agencies

Metals rally on looming Fed move NEW YORK/LONDON: Industrial metals rallied sharply on Friday, with copper extending gains into a fourth week to a fresh 26-month peak, after a surprise fall in US payrolls strengthened talk of fresh stimulus measures to boost the world's biggest economy.

Copper for December delivery on the COMEX metals division of the New York Mercantile Exchange surged 9.50 cents, or 2.6 per cent, to settle at $3.7745 per lb, a new closing high for the third position futures contract since July 7, 2008.

On the London Metal Exchange (LME), benchmark copper jumped to $8,349.50 a tonne, its highest since midJuly 2008, before ending up $200 at $8,300 a tonne.

Prices overcame earlier bouts of selling pressure tied to overnight data showing an eight-per cent build in weekly Shanghai copper stocks.

The prospect of the Fed pumping more money into the economy via quantitative easing continued to sound the inflationary alarm bells, analysts said.

Copper is also benefiting from a tightening market, where stocks in LME warehouses have tumbled more than 30 per cent since the middle of February. Friday's data showed.

LME stocks down 1,450 tonnes to 372,000 tonnes, having fallen from seven-year highs above 555,000 in late February.

Aluminum rallied more than 4 per cent to hit $2,423 a tonne, its highest since April 20, and closed up $94 at $2,420.

Among other metals, tin jumped $750 to $26,350 a tonne, underpinned by tight supply from top exporter Indonesia and low stocks.

On Wednesday, it hit a record peak at $26,790, Nickel closed up $500 at $24,400 a tonne and lead rose $61 to $2,270 a tonne.

Lead inventories slipped 900 tonnes but remain near 10-year highs at around 198,400 tonnes.

Zinc gained $28 to end at $2,289 a tonne. -Reuters

Greenback weekly outlook

US dollar to get a respite after recent selloff NEW YORK: The beaten-down US dollar could get a respite this week as positioning looks extended and other countries may try to talk down their currencies, though its downtrend remains intact amid fears of more cheap money from the Federal Reserve.

The dollar hit an 8-1/2month low against a basket of six major currencies and the euro pierced above $1.40 last week. But dollar selling has lost some momentum over the last two days as investors believe the bulk of the impact from further Fed easing may already be priced in.

Officials gathering in Washington for an IMF/G7 meeting this weekend may also try to defuse pressure on their own currencies, which in turn may also support the dollar.

"Although the weak dollar story is still there and QE is still a big risk, positioning is somewhat congested," said Mike Moran, senior currency strategist at Standard Chartered Bank in New York.

"Certainly, euro/dollar at $1.40 is very rich.

"With the G7 and IMF meeting this weekend, I don't expect a lot of appetite to really push the dollar lower from here," he added.

Expectations of further stimulus from the Fed got a boost on Friday after a government report showed an unexpected drop in US payrolls in September.

A heavy slate of economic data this week, including consumer and producer prices, retail sales and con-

sumer sentiment, could shed further light on whether the economy has slowed enough for the Fed to take action.

Investors will also scrutinize minutes from the Fed's September meeting for clues about policymakers' view on the economy and the possibility of more asset purchases.

"The marketplace is expecting a fairly substantial QE move from the Fed," said Jack Iles, a portfolio manager at MFC Global Investment Management in Boston. "If there's any disappointment on that front, we could see the dollar rally."

DOLLAR SHORTS, CURRENCY WARS Currency speculators have pushed bets against the greenback to $22 billion as of last week, the highest in more than two years. The number could have increased further this week as dollar weakness continued.

Jens Nordvig, head of G10 foreign-exchange strategy at Nomura in New York, said "the risk of a sizable US dollar short-covering rally" is building as dollar shorts have grown very quickly recently.

But while the euro/dollar rally may slow, strategists at Deutsche Bank said it may be too early to call a near-term top. They said euro/dollar would need to break through $1.45 to be at historical extremes.

The euro last traded at $1.3912, down 0.1 per cent and the dollar lost 0.5 per cent to 81.91 yen. On the week, the euro gained 0.9 per cent versus the dollar, while the dollar lost 1.6 per cent

against the yen.

The rapid rise in the euro prompted Jean-Claude Juncker, the chairman of euro-zone finance ministers, to say on Friday the single currency is too strong at $1.40.

Resistance in euro/dollar is Thursday's high around 1.4029, while support is at the 10-day moving average near 1.3730, said Kathy Lien, director of currency research at GFT in New York.

For dollar/yen, resistance is at 82.85, the September low, while support is at record low of 79.75.

Investors remained on alert for yen-selling by Japan, given it is trading at levels stronger than the 82.87 level where the central bank stepped in on September 15.

But with markets pricing in more easing from the Fed, it's becoming increasingly hard for Japan to support dollar/yen, analysts said.

Exchange rates and fears of a global currency war are set to dominate this weekend's G7 meeting. Countries, including Japan, have made clear they will intervene if necessary.

But Michael Woolfolk, senior currency strategist at BNY Mellon in New York, said "exchange rates are a dead end" and policymakers should focus on solutions to global imbalances.

"I wouldn't say things have elevated to the point of war yet. But there is an outside possibility that this could devolve into something more serious if we maintain this narrow focus," he said. Reuters

Oil surges 1.3pc on week as $ dive, payrolls slip NEW YORK: Oil prices rose on Friday, posting a third straight weekly rise as investors bet that a weaker-than-expected US jobs report bolstered the case for more monetary easing by the Federal Reserve that would keep pressure on the dollar.

The oil futures complex got further support as a strike at France's top oil port, now in its 12th day threatened to cut European oil products output.

Also, a surprisingly sharp cut in the US government's corn crop forecast sent cash ethanol prices sharply higher.

US crude for November delivery rose 99 cents, or 1.21 per cent, to settle at $82.66 a barrel, having traded from $80.30 to $83.13. For the week, prices rose $1.08, or 1.32 per cent.

ICE Brent November crude rose 60 cents, or 0.72 per cent, to settle at $84.03 a barrel. Brent was up 28 cents for the week, a seventh straight weekly rise.

"The negative unemployment report makes quantitative easing after the election a virtual certainty. This expectation has already affected the dollar's value and pushed energy prices higher," said John Kilduff of Again Capital LLC in New York.

"Another leg lower for the dollar is likely thereby creating more commodity inflation. It's not a demand issue with the employment backdrop; it's financial physics at work."

The dollar's weakness this week helped oil prices rally, reaching $84.43 intraday on Thursday, a five-month high,

before the dollar bounced and crude ended the day lower as investors booked profits ahead of Friday's payrolls report.

Earlier this week, the US Energy Information Administration data showed US crude stocks rose by a greaterthan-expected 3.09 barrels last week, though refined fuel stocks fell. Both crude and refined oil stocks remained above year-ago levels, according to the EIA. The Organization of the Petroleum Exporting Countries meets in Vienna next week to consider production and market share policy with crude prices since May hemmed between the $64.24 intraday low on May 20, the weakest price since July 30, 2009, and the 2010 peak of $87.15 reached on May 3. -Reuters

Gold posts gains for 4th week on Fed easing hopes Bullion supported by view Fed easing imminent NEW YORK: Gold rebounded 1 per cent on Friday a day after a sharp retreat, as a weak US employment report spurred buying by investors who expect the Federal Reserve will start buying government debt again to stimulate the economy.

It was the fourth consecutive weekly rise for both gold and silver. For the week, silver was up 5 per cent, outperforming gold's 2 per cent rise.

A US Labor Department report showed the US economy shed jobs in September for the fourth month in a row as government payrolls fell and private hiring slowed.

Miguel Perez-Santalla, vice president of sales at Heraeus Precious Metals Management, said that the weak jobs data should push the Fed toward trying to stimulate growth through what is known as quantitative easing, or QE2 as the market calls it.

Spot gold was up 0.9 per cent at $1,344.35 an ounce at 2:58

p.m. EDT, after peaking at $1,349.70 an ounce in earlier trade.

US gold futures for December delivery settled up $10.30 an ounce at $1,345.30. Final volume was about 195,000 lots, 50 per cent above its 30-day average, preliminary Reuters data showed. COMEX gold open interest eased but held near a record high 621,941 lots as of Wednesday.

Gold prices were choppy early, hitting a session low of $1,324.85 an ounce after St. Louis Fed chief James Bullard said policy makers face a tough decision at next month's meeting.

Gold has rallied about 10 per cent since the end of August. It hit a record high on Thursday of $1,364.60 an ounce before finishing lower for the day. The precious metal is viewed as a hedge against inflation and dollar depreciation.

Some investors thought gold's sharp drop on Thursday after hitting a record high might sig-

nal the start of a correction.

Hansen said a resilient dollar may yet keep gold from rising too high.

Gold investors are also waiting to see how this weekend's annual meeting of the International Monetary Fund and World Bank will affect foreign exchange markets.

The world's largest goldbacked exchange-traded fund, New York's SPDR Gold Trust, reported a 13.4 tonne outflow on Thursday, the biggest oneday drop in its holdings since late July.

Commerzbank wrote in a note that the outflows from gold ETFs signal that short-term speculators caused the latest swift rise in gold prices.

Among other precious metals, silver surged 2.8 per cent to $23.15 an ounce, near Thursday's 30-year high of $23.51 an ounce.

Platinum rose 0.5 per cent to $1,699.50 an ounce, while palladium climbed 0.9 per cent to $584.50. -Reuters

4 Monday, October 11, 2010

Blind-trust Needs Re-vision

The Financial Daily International Vol 4, Issue 67

Publisher & Editor-in-Chief: Amir A. Ashary Editor: Shakil H. Jafri Executive Editor: Manzar Naqvi Honorary Advisory Board Haseeb Khan, FCA

S. Muneer Hussain Rizvi

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: 92-21-5311893-6 Fax: 92-21-5388428 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

Face IMF with resolve It is a positive sign that the International Monetary Fund (IMF) has invited Pakistan to discuss its future plans with the Fund. It seems Pakistan has been avoiding facing the Fund because it does not have the strategy to contain freefall of GDP growth rate in the aftermath of floods. However, the situation is not as bleak as being painted by some of the experts. Some of them go to the extent of saying that the country can still achieve around 4 per cent GDP growth rate, though the task is not easy.

It is true that worst hit has been the rural areas but only cotton crop has been affected, that too around 15 per cent. However, a little extra care of the standing crop can still yield up to 13 million bales. The shortfall can be overcome by following two pronged policy that calls for: 1) importing superior quality cotton and 2) avoiding export of raw cotton, yarn and un-processed cloth and achieving higher value addition.

The country can also get bumper wheat, sugarcane and rice crops because of ample availability of water and fertiliser. In fact growers can cultivate sunflower, canola and corn to boost their income. Focusing cultivation of oil seeds can help in reducing edible oil import bill.

Manufacturing sector suffers from a few contentious issues, which can be overcome with the help of proactive approach. The strategy should include ensuring uninterrupted supply of energy products at affordable cost.

The Fund must be told clearly that removing subsidies at this juncture will further erode the competitiveness of the manufacturers.

However, there is a need to remove subsidies and contain transmission and distribution losses of electricity distribution companies and UFG losses of gas distribution companies.

Financial sector has to shoulder extra burden but the situation can be eased by investing less in government securities and extending more credit to the private sector.

Risk of higher lending to agriculture sector can be mitigated through credit insurance in the first phase and comprehensive crop insurance in the second phase. However, the government will have to create a pool to minimise the risk of insurance companies.

Many of the industrial units suffer because of poor capacity utilisation and the most obvious sectors are textiles/clothing, sugar, cement, and refineries. Running the plants at optimum capacities will help in achieving economies of scale, optimisation of cost and above all producing exportable surplus.

The European Union has already indicated to remove duty on 75 products of Pakistan for the next three years. The enhanced market access will remain meaningless unless Pakistani exporters strive for improving quality, optimising of cost of production and abiding terms of delivery.

There are problems and would be numerous. The first step is to kick the habit of 'self pity' and then work things out indigenously rather than looking for a messiah. So help yourself as it takes only you to change your destiny, something that no one else can, not even a super-lender like IMF.

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.

Eschmall Sardar

P

akistan has reopened the Torkham crossing used to transport supplies to Nato troops in Afghanistan, which it closed on September 30 in protest of a Nato airstrike that killed three Pakistan Army soldiers along the border. The decision of reopening the border was made after the US apologised for the strike after an investigation concluded that the "tragic event could have been avoided with better coalition forces' coordination with the Pakistan military." The border was opened after the 10th day of a blockade that raised tensions with Washington and left stranded trucks vulnerable to attacks.

In a short statement, the Pakistan Foreign Ministry said it decided to reopen the border after assessing security and that authorities on both sides of the border were coordinating to resume the supply traffic smoothly. Military sources were quoted as saying that the security situation is being reviewed after apologetic and regretful statements issued by various US officials over tragic incident in Kurram agency on September 30, 2010 in which three Pakistani soldiers embraced shahadat and two were injured as a result of Nato gunship firing. Immediately after the incident Pakistan Army strongly protested to Nato and US authorities and asked for an investigation as well as explanation of the incident. Public sentiments as well as security concerns arising due to incident were also conveyed to them.

A joint inquiry committee, comprising representatives from both ISAF and Pakistani security forces was immediately formed to probe into the incident.

Sources said the joint investigation team tirelessly worked for three consecutive days and the committee in its findings concluded that two Coalition helicopters passed into Pakistan airspace several times. Subsequently helicopters fired at a building later identified as a Pakistan border outpost, in response to shots fired from the posts. The assessment team considered it most probable that they had fired in an attempt to warn the helicopters of their presence. Unfortunately, following the engagement, it was discovered that the dead and wounded were members of the Pakistan Frontier Scouts. The joint investigation team statement said that "we believe that

Pakistani border guard was simply firing warning shots after hearing the nearby engagement and hearing the helicopters flying overhead".

Pakistan strongly protested to ISAF and Nato on the two incidents of aerial engagements by their helicopters on September 27 and September 30 from the Afghanistan side into Pakistani territory. These incidents were a clear viola-

killing of innocent civilians at Angoor Adda, in which innocent civilians were killed in a cross-border raid by the Coalition Forces. Army believes, sources said, that such like reckless actions only help the militants and further fuel the militancy in the area. "We believe that the rules of engagement with the Coalition Forces are well defined and within that, the right to conduct operations against the militants inside own There is another underterritory is solely the standing amongst the responsibility of the security circles that the US, respective armed which we trust blindly, won’t forces. There is no of any agreeeasily digest this ‘humiliating’ question ment or understanding public apology over the Nato with the Coalition Forces whereby they airstrikes as it considers are allowed to conduct Pakistan its stooge, and would operations on our side of the border." teach Pakistan a lesson at America and allied appropriate time. It is also forces deployed in believed that the US has in fact Afghanistan use Pakistan's Karachi port checked the spine of our govt up to Torkham and and military establishment Chaman border crossin order to change the future ings as key supply routes fuel, military vehicourse of strategy if need arises. for cles, spare parts, clothing tion of the UN mandate under which and other non-lethal supplies in ISAF operates. The said mandate "termi- Afghanistan. The closure of Torkham left nates and finishes" at the Afghanistan scores of trucks stranded and attacked by border. There are no agreed "hot pursuit" Taliban on their way from the port city of rules. Any impression to the contrary is Karachi, and bottlenecked traffic to the not factually correct. Such violations are open but smaller Chaman crossing in the unacceptable, the military sources said. southwest. Observers say even when the Nato's Secretary General Anders Fogh border has reopened; lingering tensions Rasmussen also regretted the incident on will remain in the US-Pakistan relationOctober 4 and said that killing of three ship. The western partners believe that Pakistani soldiers was unintended and Pakistan is unwilling to go after the showed the need to improve coordination Afghan Taliban on its territory with whom between the Nato and the Pakistani mili- it has strong historical ties and who genertary. Following the inquiry findings, the ally focus their attacks on western troops, US Ambassador in Pakistan, Ms Anne not Pakistani targets. But Pakistanis susPeterson and the ISAF Commander, Gen pect that this is the plot hatched by the US, David Patreaus respectively extended allied countries, especially by neighboring their apologies and regretted the incident India to destabilise Pakistan and create on October 6. Admiral Mike Mullen in a wedge between the Washington and separate letter to the Pakistan Chief of Islamabad. They have cautioned to be vigArmy Staff, Gen Ashfaq Parvez Kayani, ilant against the bids to fuel the now growexpressed deep regrets over the incident ing tensions between the two capitals. and said "We take the incident very seriSecurity experts have urged the miliously. Please know that the families of tary authorities and government of the soldiers lost in this tragic incident are Pakistan to raise the issue of CIA drone in our constant thoughts and prayers". attacks inside Pakistan's tribal territories In a previous incident on September 4, as it is high time for Islamabad to settle 2008, Pakistan Army regretted the it down with Washington. With the

“

opening of Torkham border for Nato troops the people of Fata in particular and across Pakistan is general have understood to believe that the drone attacks are being conducted with Islamabad's secret understanding while apparently the government denies it.

They also point out that when the soldiers of security forces were targeted by the US- Nato airstrikes, the Pakistan military reacted strongly and acted swiftly against the Nato supplies to Afghanistan, but when the common citizens of this country are being killed by drones, the government as well as the security forces, go mum. That's why the CIA has dramatically stepped up the number of strikes in the tribal belt - in last eight days more than 10 missile strikes were conducted this month. Last month the US launched 21 such attacks, an unprecedented number and nearly all were in North Waziristan. Ironically America rarely acknowledges the covert missile strike program, which Pakistan officially opposes, but is believed to secretly support it.

There is another understanding amongst the security circles that the US would not easily digest this 'humiliating' public apology over the Nato airstrikes as it considers Pakistan its stooge, and would teach Pakistan a lesson at appropriate time. It is also believed that the US has in fact checked the spine of our government and military establishment in order to change the future course of strategy if need arises. Anyway the government of Pakistan has accepted the apology and allowed opening of the border with good intension, which Washington should not consider as Pakistan's weakness but pragmatically understand the security implications of betraying its frontline ally in the war against terror while ignoring the realities on ground. Nato supplies have resumed after suspension of more than a week.

Karachi to Kandhar and Kabul are long routes to be protected effectively all along. Many Pakistanis - civil and military - have laid their lives in the process.

Pakistani soldiers are dying daily fighting the Taliban. Drones take a similar heavy toll of innocent men, women and children in the form of collateral damage. For how long we would keep suffering for others - particularly for the ungrateful ones? It is time to ask US to look after its war on terror itself.

The Tense Far East C

hina on Saturday released on bail the remaining Japanese employee of a construction firm who had been detained on suspicion of illegally entering a military zone, in a further sign of improving ties.

Earlier this week Japanese and Chinese leaders met for the first time since a feud over boat collisions near disputed islands in the East China Sea last month soured relations, and agreed that improving strained relations was vital.

Here are some facts about ties between the two countries.

ECONOMIC POWERHOUSES, SHIFTING RANKINGS n Preliminary statistics indicate China has edged past Japan to become the world's secondbiggest economy, with the United States remaining the

world's biggest by far.

Japan's second-quarter unadjusted gross domestic product (GDP) totalled $1.2883 trillion on a nominal dollar basis, against China's second-quarter unadjusted GDP of $1.3369 trillion. Japan and China together account for about 17 percent of the world's output. n China-Japan trade rebounded in the first half of 2010 after slumping in the global financial crisis. Bilateral trade reached 12.6 trillion yen ($153.8 billion) in value in the first half, a jump of 34.5 percent over the same period last year, according to Japanese statistics.

Two-way trade totalled 21.7 trillion yen in 2009. China has been Japan's biggest trading partner since 2009. n China and Japan are the world's first- and secondbiggest holders of foreign

reserves. n A series of strikes in China has hit Japanese firms in recent months, including suppliers to Toyota Motor Corp and Honda Motor Corp HISTORICAL TENSION n Japan invaded and occupied part of China from 1931 to 1945. Bitterness over Japan's wartime atrocities has faded as a diplomatic flashpoint, but still underpins widespread Chinese public distrust of Japan. n China has criticised highprofile visits by Japanese politicians to Tokyo's Yasukuni Shrine for the war dead. Among those honoured at the shrine are 14 Class A war criminals convicted by an Allied tribunal after World War Two. Junichiro Koizumi, Japanese prime minister from 2001 to 2006, made annual visits to the shrine while in office but his

successors have stayed away.

TAIWAN, NORTH KOREA n China wants Japan to clearly back Beijing's "one China" policy. Japan says it accepts that, but many politicians and businesses have close ties with Taiwan, a former Japanese colony. n China and Japan are both part of stalled six-party talks seeking to end North Korea's nuclear arms programme. Japan is more critical of North Korea and joined international condemnation of it over the sinking of a South Korean navy ship in March. China, the North's main diplomatic and economic backer, instead urged restraint by all sides.

TERRITORIAL DISPUTES AND MILITARY TENSION n The two countries are at odds over China's exploration for natural gas in the East China

Sea. In 2008, they agreed on principles to solve the feud by jointly developing gas fields.

Progress has been slow and Japan has accused China of drilling for gas in violation of the deal.

Those seas are at the centre of a territorial dispute between the two countries focused on a group of uninhabited islets, known as Senkaku in Japan and Diaoyu in China, over which both countries claim sovereignty. n Japan has been worried by China's military modernisation, especially its double-digit defence spending increase and expanding naval reach. In May, Tokyo lodged a protest with Beijing, claiming a Chinese ship had violated Japan's sovereign rights by approaching a Japanese survey vessel.

China said the ship was acting within its rights.-Reuters

A Partner-Ship Running Aground?

W

ashington's growing impatience with Pakistan's perceived foot-dragging against Taliban militants hiding in its borderlands is putting heavy strain on an alliance critical to winning the war in Afghanistan.

Since September, Pakistan has seen a surge in drone attacks as well as a cascade of leaks, criticisms and border incursions on the part of Nato forces in Afghanistan, one of which killed two Pakistani troops. Citing security reasons, it closed vital coalition supply routes to Afghanistan and wrung an apology from the US ambassador, Anne Patterson, for the two deaths.

While convoys to Afghanistan remain stuck at the Torkham border crossing, Taliban militants have stepped up attacks on the supply lines, torching dozens of fuel tankers in the last week.

Washington, for its part, is concerned that some elements of Pakistan's InterServices Intelligence agency (ISI) had interactions with the insurgents that "may be seen as supporting terrorist groups rather than going after them," said Pentagon spokesman Colonel David Lapan on Thursday.

The White House also sent an assessment of the Afghanistan war to Congress this week that said Pakistani forces had avoided direct conflict with al Qaeda and the Taliban this spring, in part for political reasons.

White House spokesman Robert Gibbs said on Thursday that the status

quo was not acceptable, which was underscored in the report to Congress.

The crux of the issue is that Pakistan and the United States do not have the same interests in the region.

According to Stratfor, a private intelligence firm, Pakistan wants to regain influence in post-invasion Afghanistan by using Afghan Taliban militants taking shelter in Pakistan. The United States needs to eliminate those same militants and their sanctuaries so it can withdraw from Afghanistan.

"It's clear the Pakistanis are frustrated with the United States," said Andrew Exum, a fellow with the Center for a New American Security and former adviser on General Stanley McChrystal's assessment team in Afghanistan. "What I don't think the Pakistanis understand is how frustrated the Americans and the American public are with the Pakistanis."

INCREASED TENSIONS Earlier this summer, American and Pakistani officials held a strategic dialogue that saw more than $500 million in new aid projects. An aggressive American response to Pakistan's devastating August floods was, in part, designed to show US commitment to its ally.

But US-Pakistan tensions are now probably the worst they've been since 2001, when the Bush White House demanded Pakistan cease support for the Taliban and join in its fight against al Qaeda.

The recent White House assessment was especially damaging, because it

could fuel concerns in Congress over continued aid to Pakistan, currently set at $7.5 billion in civilian and development aid over the next five years.

"There could be a little bit of poker playing of (the) US military basically saying: 'All right, we'll take the risk of humiliating the Pakistani military and let's see if that prompts them to actually take some action on their own,'" a congressional aide told Reuters on condition of anonymity.

"You know, they don't like us doing drone attacks and sending helicopters over. 'OK, step up and do it yourself.'"

NEED FOR RESULTS The reason for the stepped up pressure could be a strategy review on Afghanistan due in December.

"The Pentagon and the chain of command are under real pressure to show progress in Afghanistan," the congressional aide said.

The aide said US generals believed they were unlikely to make enough progress by July 2011 -- when President Barack Obama has said he will start to withdraw US forces -- as long as the government of Afghan President Hamid Karzai lacks credibility and militants find sanctuary in Pakistan.

"They can't really do anything to make the Karzai government more credible. So they are trying to go after the sanctuary issue and I think that they realise, and I think that (General David) Petraeus realises, that the status quo has very little chance of success for them (in the time-

frame they've been given)," said the aide.

How might these diplomatic spats affect the war effort in Afghanistan?

Although Pakistan's army chief General Ashfaq Kayani is believed to have good ties with the United States, other senior officers may grow tired of US doubts over Islamabad's commitment to fighting militancy.

Hardline elements in the army could argue Pakistan had lost thousands of soldiers supporting the US war on militancy and is getting little in return except pressure to do more.

"At some stage, they could prevail or would at least be able to influence policy. You cannot totally disregard them," said Imtiaz Gul, author of The Most Dangerous Place, a book about Pakistan's lawless tribal areas.

Still, neither side can afford to walk away from the other. Pakistan receives $2 billion a year in military aid and the United States needs it to keep the Afghan supply lines open and fight its own militants who are supporting the insurgency in Afghanistan.

Overcoming these disagreements is crucial if the next round of strategic dialogue -- scheduled for Oct 22 in Washington -- is going to be successful, said Shuja Nawaz, director of the South Asia Center at the Atlantic Council.

"I think it's going to be critical in the next few weeks ... that they don't have any of these flare-ups, neither do they have any lingering doubts about each others intentions," he said.-Reuters

5

Monday, October 11, 2010

Dow ends above 11,000pts on Fed hopes, farm forecast

Asian stocks gain for 6th week as cbanks seen boosting growth

Roaring week for Khi stocks

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

10,042.44 10,260.48 218.04 2.17 459.25

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

3,129.82 3,192.48 62.66 2.00 19.25

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

2,566.34 2,610.22 43.88 1.71 0.81

Nawaz Ali

Major Gainers

Close

Change

LAKST 371.55 NESTLE 1,961.62 FZTM 353.16 DREL 699.99 APL 368.59

Symbol

73.39 56.87 47.98 39.99 27.25

Major Losers

Symbol

Close

Change

BATA 446.61 ULEVER 3,990.00 WYETH 910.00 SIEM 1,150.00 BHAT 162.35

-43.39 -34.95 -31.92 -26.97 -24.75

Top 5 Volume Leaders

Symbol

Close Vol (mn)

LOTPTA JSCL BAFL NCL TRG

8.92 9.16 9.11 18.42 4.28

35.58 27.80 21.21 20.21 19.08

Active Issues Plus Minus Unchanged

225 187 22

Sector Updates FERTILISER

Wall Street weekly outlook

000 tonnes

Urea Offtake (Jan to July 10) 3,565 Urea Offtake (July 10) 580 Urea Price (Rs/50 kg) 879 DAP Offtake (Jan to July 09) 374 DAP Offtake (July 10) 49 DAP Price (Rs/50 kg) 2,626

AUTOMOBILE ASSEMBLER PAK SUZUKI MOTOR Units Production (July 09 to June 10) 71,998 Sales (July 09 to June 10) 73,993 Production (July 10) 7,509 Sales (July 10) 4,503

INDUS MOTOR CO Production (July 09 to June 10) 50,557 Sales (July 09 to June 10) 50,823 Production (July 10) 5,162 Sales (July 10) 4,999

HONDA ATLAS CAR Production (July 09 to June 10) 13,500 Sales (July 09 to June 10) 14,120 Production (July 10) 1,560 Sales (July 10) 1,272

DEWAN FAROOQ MOTORS Production (July 09 to June 10)1,218 Sales (July 09 to June 10) 1,371 Production (July 10) 41 Sales (July 10) 40

BANKING SECTOR Scheduled bank (Rs in mn) Deposit (August 20,10) 4,595,176 Advances (August 20,10) 3,304,533 Investments (August 20,10) 1,788,671 Spread (July 2010) 7.51%

OIL MARKETING CO (000 tons) MS (Jul 09 to June 10) MS (July 10) Kerosene (Jul 09 to June 10) Kerosene (July 10) JP (Jul 09 to June 10) JP (July 10) HSD (Jul 09 to June 10) HSD (July 10) LDO (Jul 09 to June 10) LDO (July 10) Fuel Oil (Jul 09 to June 10) Fuel Oil (July 10) Others (Jul 09 to June 10) Others (July 10)

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

MANILA: A trader talks over the phone during trading at the Philippine Stock Exchange in Manila's Makati financial district. -Reuters

1,933 188 164 15 1,377 129 7,435 664 75 7 9,259 869 13 1

Rs 40.85 41.22 -0.90% 47.14 46.55 1.27% 47.37 46.78 1.26% 50.61 49.63 1.97% 46.37 45.29 2.38% 39,932 39,723

Fed to run the show despite big earnings NEW YORK: Not even earnings from big names like Google and GE this week will be able to pull Wall Street's focus away from the possibility of more cheap cash flowing in from the Federal Reserve.

Normally when the likes of JPMorgan or Intel --also reporting this week -- tell investors how much they earned in the previous quarter, the stock market hangs on every word.

But after Friday's surprisingly anemic payrolls report, the increased likelihood the Fed will buy more assets like Treasury bonds to stimulate the economy has investors ignoring the usual benchmarks.

"Markets have been oscillating between macro and micro data, and this week will focus on macro," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.

The fact that Wall Street closed Friday in the black despite the weak payrolls data is evidence the Fed's action is top of mind for investors at this time.

Action from the central bank has already been baked into the equities rally, with $500 billion as the most talked-about injection. And the risk of a decline in equities is off balance as both good and bad economic news could have a bullish effect on stocks.

"Good news is clearly good and the market goes up," said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in Newark, New Jersey.

"If earnings or economic news is bad, then we'll get"

a second round of quantitative easing, he noted.

"Therefore the market will still go up. In that sense, risk is asymmetric."

Economic data this week, including consumer and producer prices, retail sales and consumer sentiment could shed further light on whether the economy has slowed enough to require swift action from the Fed. "If CPI shows core inflation is going to fall, further odds of aggressive QE --as opposed to a trickle -- will increase and that will be viewed positively by the market," said Praveen.

EARNINGS TAKE BACK SEAT Intel Corp, JPMorgan Chase & CO, Google Inc and General Electric Co are among the largest companies that will post earnings this week. Intel warned in late August that its revenue could fall short and its shares got punished, so there's little space for a negative surprise.

And if Alcoa's report on Thursday was any indication, even bellwethers' numbers may have to vary enormously from expectations to be noted amid all the QE2 talk.

Alcoa Inc marked the unofficial start to earnings season, rising 5.7 per cent to $12.89 a day after its results beat estimates. While the stock rose sharply, it was far from the market's focal point, which hinged on the expectation of the Fed's action.

And this week's Treasury auctions, especially of longer-term bonds, may also provide a boost to stocks.

Investors are getting fatigued and bids on the 30-

year bond might be a little bit weaker from past auctions, according to Wells Fargo's Jacobsen.

A decline in interest would suggest "people are more interested in going into equities rather than bonds," he said.

Turning the balance even further in favor of the bulls, expectations of more easing from the US central bank should keep the dollar on a downtrend, which is another signal of gains for Wall Street.

An inverse correlation between the greenback and US stocks has prevailed strongly in the last weeks The 30-day correlation between the S&P 500 and the dollar index was at 0.88, while the 50-day correlation was -0.89.

That said, with the International Monetary Fund meeting discussing the issue of competitive currency devaluations and shorts on the US dollar piling up, a big move up on the greenback may become a hurdle for stocks.

S&P 500 charts show the previous resistance at 1,150 has turned into short-term support, with the next resistance level around 1,1701,175. The current trend channel doesn't hit that area until late this week.

Options trading implies low volatility levels, as reflected by the CBOE Volatility Index and the CBOE Nasdaq 100 Volatility Index, said Scott Fullman, director of derivative investment strategy at WJB Capital Group.

"While the rally appears to have stalled," he said, "we continue to see indications of an upward bias toward prices." -Reuters

KARACHI: Buying by the local and foreign institutions on hopes of good corporate results, relaxation by EU on Pakistani exports and expectations of early launch of MTS allowed the key index of Karachi Stock Exchange to close at near twomonth high.

The benchmark KSE 100index increased by 218 points (2.17 per cent) to close at 10,260 points, KSE 30-Index by 243 points (2.52 per cent) to close at 9,929 points and KSE All-Share Index grew by 134 points (1.91 per cent) to close at 7,151 points.

Saeed Khalid, analyst at Invest Cap said, "With stillness on the political front and some positive news flow with regards to EU import tariff relief for Pakistan spurred investors to opt for fresh positions ahead of the result season."

Market started the week in a depressive mood. During the first three days investors were not interested in trade rather sidelinism as triggers were nowhere near the market. Moving forward they preferred remove themselves from active trade ahead of recommencement of NRO hearings from Oct 13.

Therefore benchmark index underwent minor changes in the first three days.

However, on Tuesday it touched its week-low of 9,994 points.

Then there was a heavy bullrun on Thursday with impressive volumes (highest of about 4 months) due to local and foreign institutional buying while the news of relaxation on Pakistani exports by EU, higher international oil prices and apology by US on recent NATO attack too propelled the investors to take fresh positions therefore market closed the session with a major gain of 162 points.

The bull-run then continued on the last day of the week also, where index further gained 68 points with hopes of early launch of Margin Trading System (MTS) and expectations of good corporate results.

On Friday the apex index touched its week-high of 10,311 points.

Angela Memon, analyst at JS Global Capital said despite a sluggish start, the market in the last two days turned aggressive, This appears to be in response to signal suggesting presence of liquidity, particularly evident from the T-bill auction after SBP’s recent MPS, where the bids exceeded the auction size by nearly 3 times.

Additionally, positive news of EU's import duty waiver on selected export items from Pakistan, a hike in cement prices and an upward revision in gas wellhead prices further strengthened investor confidence, she added.

She said that the T-bill auction after the latest MPS saw a participation of Rs233bn against the auction's size of Rs80bn, with the majority investment in 3-month paper, indicating there is sufficient liquidity in the market. This in our view was a major contributor to the market performance this week, Angela added.

Investor participation remained impressive throughout the week as 459 million shares traded in the overall market which is 105 million more as compared to a turnover of 354 million shares a week earlier.

Average daily turnover stood at 91.8 million shares, 21 million more as compared to an average turnover of 70.8 million shares during the previous week.

Out of total 434 active issues, 225 advanced and 187 declined while 22 issues remained unchanged.

Gulf stocks

Saudi stocks up, banks fall ahead of 3rd quarter DUBAI: The Saudi bourse TASI advanced on higher oil prices, and despite investors taking a cautious stance on financial stocks.

Oil prices rose on Friday, a third straight weekly rise as investors speculated that weaker-than-expected US jobs data bolsters the case for more monetary easing by the Federal Reserve.

The index advanced 0.5 per cent to 6,421 points. Sahara Petrochem and Petro Rabigh climbed 5.8 per cent and 1.9 per cent respectively. Heavyweight Saudi Basic Industries (SABIC) gained 2.2 per cent.

Banks declined as investors awaited third-quarter results for guidance. Samba Financial Group declined 2 per cent.

Dubai developer Arabtec surged to a near five-month high as investors anticipated better-than-expected thirdquarter earnings and as two projects boosted the company's outlook.

The shares rose "because of the approval of the Russian government" to build what could become Europe's tallest skyscraper for which Arabtec has the building contract, said Mohamed Khaled, risk manager at Prime Emirates, referring to a Russian newspaper report.

Arabtec officials were not immediately available to comment. The stock gained 5.1 per cent on the Dubai bourse.

"Besides there is also the recent Saudi contract," says Khaled. Arabtec recently won a 5 billion riyal ($1.33 billion) order for a four-year housing project in Saudi Arabia.

Emaar Properties gained 3.1 per cent. Investors are betting on better-than-expected results for the property sector, said Khaled.

Abu Dhabi's index ADI gained 0.7 per cent to 2,704 points.

Oman's index MSI continued to move sideways amid thin volumes, as investors remained on the sidelines until third-quarter earnings give more direction.

The Muscat index edged 0.05 per cent higher to 6,509 points.

National Bank of Oman advanced 0.9 per cent.

See # 1 Page 11

Dhiyan

CORRECTION SEEN SO STABLE YOUR HORSES Mohammad Azam Khan, CEO Sunrise Capital A correction is due in the market this week which will be a buying opportunity for those investors were on the sidelines or weren't taking fresh positions. Therefore when market takes a correction these investors can take positions in cements, textiles and E&Ps. Market after correction is expected to see some bullish performance where index can touch 10,800 points. Continued foreign and local institutional support, starting of reconstruction activities in flood affected areas, and launch of Margin Trading System (MTS) would trigger off the market.

Salman Naqvi, Head of Sales Aba Ali Habib Securities Local institutions' heightened interest sparked off bullish activities in the last two sessions earning market high volumes due to which some of those investors who were on the sidelines have also become active. Now, recommencement of hearings on NRO implementation case from Oct 13 would be important for the market also, therefore we would see some rangebound activities in the market with low volumes in the coming days. However, if the local government institutional investors remain active then we may not see a decline. Investors are advised to adopt 'wait and see' strategy till NRO issue settles down. Market would react accordingly to any development on the political front. A positive opening is expected today.

6

Monday, October 11, 2010

Market Volume

459,253,054

Value

13,297,998,391

Trades

231,629

Paid up Cap(mn)

Current High Low Change

10,260.48 10,310.85 9,993.77 h218.04

PE

Open

576

853 15.66

735 15.23 109.05

5.67 341.34 80.34

5.37 200.59

High

High Low 1,283.10 1,242.10 Total cos Defaulter cos P/BV (x) ROE (%) 4.06 37.01 Low

Close Chg

369.99 341.50 368.59 27.25 86.13

79.23

Close Change % Change 1,278.38 30.37 2.43 Listed cap Market cap 200-Day High 65,194.15 mn 1,028,646.92 mn Payout (%) Div Yield (%) 200-Day Low 68.56 6.25 Last 60 days High Low

Volume

1759539 369.99

86.13

5.79

2705830

93.60

114.02 107.00 112.39

3.34

332822

138.45

289.00

250

-

300

20

73.47

-

-

-

-

106.00 32.17 100B

31

-

183.25

125

148.00 144.61 147.21

0.51

1676556 153.00

133.00

82.5

-

55

-

5.65 173.10

181.40 172.50 180.23

7.13

4098941 214.10

168.70

130

20B

90

20B

6.21 234.64

245.30 234.55 244.55

9.91

6716599 245.30

213.17

180

-

255

-

PSO XD

1715

-

58.50

4.72 267.45

Shell Gas LPG

226 13.52

Shell Pakistan XD

685

30.49

9.94 193.17

61.76

55.00

61.76

3.26

280.35 264.76 279.13 11.68 32.01

29.51

30.01 -0.48

195.50 191.10 193.91

0.74

1028274 218.40

2010 Div BR (%) (%)

2365 350

218.40 200.00 215.57 14.98

2009 Div BR (%) (%)

11950

Oil & Gas Development XD 43009 10.16 146.70

Pak Petroleum

Pak Refinery Limited

Current High Low Change

7,151.19 7,186.99 6,979.01 h134.37

30493

-

200

Open 694.19 Turnover 86,808 P/E (x) 5.50 Company

Paid up Cap(mn)

PE

48.26

-

-

-

-

2826917 289.45

233.10

50

-

80

-

506291

39.80

27.32

-

-

-

-

72040

244.00

188.00

330

-

40

-

High

Low

Close Chg

Close 693.86 Listed cap 3,242.17 mn Payout (%) 11.08

Volume

Change % Change -0.33 -0.05 Market cap 200-Day High 12,327.97 mn Div Yield (%) 200-Day Low 2.02 -

Last 60 days High Low

Open 1,135.34 Turnover 69,451,752 P/E (x) 7.12 Company

Paid up Cap(mn)

Agritech Limited Bawany AirSPOT

PE

Open

3924

-

23.01

68

1.50

12.00

9.28

75.32

High

High Low 1,174.74 1,131.92 Total cos Defaulter cos P/BV (x) ROE (%) 2.49 35.00 Low

Close Chg

Volume

23.97 0.96

40168

22.01

-

-

10.00

11.75 -0.25

-

5

10R

72.00

72.94 -2.38

18698

82.50

66.90

90

-

15

-

18043

174.00

154.00

125

-

-

-

18506

185.88

155.38

40

10B

7.85 164.75

171.90 163.55 170.25 5.50

Dawood Hercules

1203 3663

-

1.38

1.55

1.31

1.41 0.03

94

4.37

11.04

11.87

11.00

11.71 0.67

Fatima Fertilizer

22000

Fauji Fertilizer

6785

9.10 175.50 -

11.02

7.30 105.07

Fauji Fert. Bin Qasim

9341

7.27

ICI Pakistan XD

1388

7.29 116.93

Lotte Pakistan

15142

Mandviwala

11.20

10.01

10.33 -0.69

108.01 105.00 107.34 2.27 29.04

27.30

28.57 1.42

123.20 116.00 122.40 5.47

16.78

616368

-

10.00

-

-

20

1.28

-

-

-

-

10.85

15

-

15

-

2786944 194.59

165.60

20

-

552881

12.46

2279913 113.39 8990658

6010B 40R

9.02

-

-

-

-

102.96 131.5

10B

75

-

30.65

26.59

40

-

5

-

1308811 128.30

109.50

80

-

55

-

3.10

8.46

9.05

8.39

8.92 0.46

35584127

9.07

6.75

5

-

-

-

-

1.70

2.56

1.06

1.79 0.09

141740

3.24

1.06

-

-

-

-

1.34

1.45

1.30

1.34 0.00

748683

1.80

1.16

-

-

-

-

2.50

2.85

2.13

2.31 -0.19

24387

3.80

2.00

-

-

-

-

127.20 118.02 124.90 4.36

13584

134.00

110.03

75

-

25

5B

Shaffi Chemical

120

1.74

Sitara Chem Ind

204

5.51 120.54

Sitara Peroxide

551

-

8.03

8.90

8.00

8.53 0.50

483893

11.09

7.67

-

-

-

-

90

5.02

45.20

46.25

41.00

42.37 -2.83

119977

48.00

41.00

50

-

50

-

Wah-Noble

Company

63.00

64.06 -2.24

76593

87.86

62.75

-

20B

40

-

MA (10-day)

17.09

Total Equity (Rs in mn)

3,102.47

38.12

38.70 -1.98

10215

41.00

34.50

30

-

15

-

MA (100-day)

16.75

Revenue (Rs in mn)

9,964.55

MA (200-day)

18.89

Interest Expense

1,081.54

1st Support

17.95

Profit after Taxation

2nd Support

17.42

EPS 09 (Rs)

1.249

1st Resistance

19.08

Book value / share (Rs)

37.51

2nd Resistance

19.68

PE 10 E (x)

3.41

Pivot

18.55

PBV (x)

0.49

AUTOMOBILE AND PARTS Performance of SR Automobile and Parts Index Open 1,044.38 Turnover 6,632,669 P/E (x) 3.74 Company

Paid up Cap(mn)

PE

Open

High

High Low 1,091.76 1,033.02 Total cos Defaulter cos P/BV (x) ROE (%) 0.95 25.35 Low

Close Chg

Close 1,065.36 Listed cap 6,768.53 mn Payout (%) 20.42

Volume

Change % Change 20.98 2.01 Market cap 200-Day High 38,478.72 mn Div Yield (%) 200-Day Low 5.46 -

Agriautos Ind Atlas Battery Dewan Motors General Tyre XD Ghandhara Nissan Ghani Automobile Ind Honda Atlas Cars Indus Motors XD Pak Suzuki Sazgar Engineering Transmission

144 101 890 598 450 200 1428 786 823 125 117

5.11 69.90 5.20 138.29 1.38 6.17 22.10 4.23 3.84 4.74 - 10.57 5.13 216.49 9.17 72.75 6.36 24.38 2.19 2.20

PE

Open

High

Low

Close Chg

Volume

-

19.55

19.89

18.20

19.11 -0.44

295074

22.70

16.44

50

4.16

41.30

42.50

39.50

40.00 -1.30

7871

62.85

39.50

20

-

2533.33B

411

4.73

39.99

40.20

39.40

40.00 0.01

11167

50.40

38.10

50

-

50

Pak Paper ProductXDXB Security Paper

Last 60 days High Low

565 675

Huffaz Pipe International Ind

PE 3.38 -

Open 24.75 2.04

High 25.64 2.23

High Low 981.65 942.99 Total cos Defaulter cos P/BV (x) ROE (%) 0.98 33.10 Low 24.35 1.93

Close Chg 24.98 0.23 2.06 0.02

Last 60 days High Low

2009 Div BR (%) (%) - 425R

2010 Div BR (%) (%) -

-

-

Close 958.31 Listed cap 3,596.11 mn Payout (%) 30.91

Last 60 days High Low

Volume 44445

31.73

133711

2009 Div BR (%) (%)

23.75

3.20

-

1.65

-

-

-

2010 Div BR (%) (%) 30 -

-

555

5.45

15.33

15.00

12.25

12.69 -2.64

93244

16.75

12.25

-

30B

-

-

4.59

48.27

48.75

46.90

47.12 -1.15

128875

70.71

46.90

-

-

40

20B

CONSTRUCTION AND MATERIALS Performance of SR Construction and Materials Index High Low 937.36 887.96 Total cos Defaulter cos P/BV (x) ROE (%) 0.56 7.10

Close 918.47 Listed cap 54,792.74 mn Payout (%) 19.04

Change % Change 6.10 0.67 Market cap 200-Day High 68,853.63 mn Div Yield (%) 200-Day Low 2.43 -

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

1828

-

3.24

3.39

2.80

3.25 0.01

433706

Attock Cement

866

5.03

63.89

65.00

62.00

63.20 -0.69

602333

Berger Paints

182

-

15.19

15.49

14.01

14.61 -0.58

29703

Cherat Cement

956

-

10.99

11.29

9.51

11.29 0.30

97721

12.50

8.90

-

-

-

-

Dadabhoy Cement

982 11.69

1.55

1.80

1.45

1.52 -0.03

96305

2.74

1.30

-

-

-

-

575714

2.20

1.30

-

-

-

-

16859374 28.74

23.02

-

20R

-

20R

Al-Abbas Cement

Dewan Cement

3574

-

1.48

1.67

1.30

1.60 0.12

DG Khan Cement Ltd

3651 34.71

24.03

25.33

23.40

24.99 0.96

EMCO Ind

350

Fauji Cement Flying Cement Ltd

Last 60 days High Low 4.40

2009 Div BR (%) (%)

2.80

-

-

72.40

62.00

50

20B

20.00

14.01

-

-

2010 Div BR (%) (%) - 100R 50

-

- 122R

-

2.57

3.96

2.63

3.00 0.43

10816

5.15

2.11

-

-

-

-

6933 11.85

4.77

4.95

4.52

4.74 -0.03

1288980

5.50

4.50

-

-

-

-

1760

Gharibwal Cement

2319

-

1.90 3.84

1.95 3.72

1.75 3.02

1.87 -0.03 3.32 -0.52

125975

2.37

10526

1.75

7.50

2.11

-

-

-

-

Haydery Const

32

-

0.86

0.99

0.72

0.99 0.13

5452

2.00

0.25

-

-

-

-

Kohat Cement

1288

-

6.00

6.10

5.50

5.98 -0.02

232795

7.10

5.50

-

-

-

-

Lucky Cement

3234

6.53

70.77

73.34

70.43

72.63 1.86

4073856

73.88

62.60

40

-

40

-

Maple Leaf Cement

3723

-

2.81

2.97

2.51

2.82 0.01

826662

3.84

2.51

-

-

-

-

Pioneer Cement

2228

-

7.69

8.40

7.20

8.03 0.34

139236

8.47

6.80

-

-

-

-

361

-

9.35

9.35

7.56

8.90 -0.45

7510

12.23

7.56

-

-

-

-

Shabbir Tiles

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 898.72 Turnover 611,009 P/E (x) 2.59 Paid up Cap(mn)

Cherat PapersackSPOT

92

High Low 912.02 876.62 Total cos Defaulter cos P/BV (x) ROE (%) 1.14 43.91

Close 890.44 Listed cap 3,043.31 mn Payout (%) 15.55

Change % Change -8.28 -0.92 Market cap 200-Day High 33,108.99 mn Div Yield (%) 200-Day Low 6.01 -

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

4.43

46.80

47.81

46.00

46.52 -0.28

164107

51.05

34.00

2009 Div BR (%) (%) -

-

2010 Div BR (%) (%) 20

25B

230

-

1.80

2.14

1.81

2.00 0.20

25269

2.89

1.70

-

-

-

-

Ghani GlassSPOT

970

6.11

60.29

60.40

58.51

59.66 -0.63

70682

61.99

54.65

30

10B

25

10B

MACPAC Films

389

-

3.10

3.79

2.40

2.42 -0.68

11634

4.69

2.21

-

-

-

-

Packages Ltd

844 15.44 101.85

125.96

98.00

32.5

-

-

-

104.00 100.11 101.88 0.03

316461

Company

Paid up Cap(mn)

Chashma Sugar Crescent Sugar Habib Sugar Habib-ADM Ltd XD Kohinoor Sugar National Foods XD Quice Food Rafhan Maize Shahmurad Sugar Shakarganj Mills

287 214 600 200 109 414 107 92 211 695

PE

Open

0.74 9.88 9.55 12.23 6.59 6.50 6.01 29.41 29.99 3.65 16.02 16.50 4.99 5.40 19.82 44.10 43.95 2.21 3.35 6.35 1300.00 1364.97 16.65 11.20 11.50 4.13 5.00

Company

Paid up Cap(mn)

AL-Ghazi Tractor Bolan CastingSPOT

High Low 1,493.42 1,416.52 Total cos Defaulter cos P/BV (x) ROE (%) 9.46 30.30 Low

Close Chg

9.14 9.15 6.00 6.48 28.50 29.14 12.90 13.00 4.00 4.45 40.05 41.43 2.30 2.85 1233.34 1309.25 10.60 11.49 3.75 4.01

-0.73 -0.11 -0.27 -3.02 -0.54 -2.67 0.64 9.25 0.29 -0.12

Close 1,464.26 Listed cap 11,335.33 mn Payout (%) 30.57

Volume

215 95

Dewan Auto Engineering 214

PE

Open

5.06 213.92 5.78

49.47

-

0.72

Ghandhara Ind

213

1.93

13.90

Millat TractorsXDXB

366

5.69 425.52

High

High Low 1,459.08 1,312.58 Total cos Defaulter cos P/BV (x) ROE (%) 3.02 38.02 Low

Close Chg

218.39 212.00 213.07 -0.85 51.99

47.26

50.04

20B 20B -

8.00 5.01 23.50 12.90 2.11 40.05 1.60 1214.24 7.40 3.02

2009 Div BR (%) (%) 35 40 900 15 -

25B 25B -

2010 Div BR (%) (%) 40 12 600 -

-

PE

Open

High

Low

Close Chg

106 1174 231

2.96 2.80

9.59 13.82 17.58

11.25 14.15 17.55

9.26 13.55 16.00

10.22 0.63 13.84 0.02 17.18 -0.40

Close 1,049.48 Listed cap 3,763.71 mn Payout (%) 6.27

Change % Change 40.38 2.88 Market cap 200-Day High 30,595.51 mn Div Yield (%) 200-Day Low 16.56 -

Last 60 days High Low

2009 Div BR (%) (%)

2010 Div BR (%) (%)

12478

227.45

200.26

400

-

150

-

0.57

97835

51.99

35.25

-

20B

25

10B

0.76

0.70

0.70 -0.02

10200

14.40

12.25

12.25 -1.65

316976

19.80

12.25

-

-

-

-

448.50 390.00 443.82 18.30

887407

597.90

0.98

390.00

0.36

450

-

25B

-

650

-

25B

-

TRG Pakistan Limited

Volume

Last 60 days High Low

13169 11.25 1458612 15.95 77853 19.12

7.11 12.17 14.05

Open 923.69 Turnover 60,065,038 P/E (x) 6.14 Company

Paid up Cap(mn)

Ali Asghar Textile Amtex Limited XD Artistic Denim Ashfaq Textile Azam Textile Azgard Nine Babri Cotton Bannu Woolen Bilal Fibres Brothers Textile Chakwal Spinning Chenab Limited Colony Mills Ltd Crescent Fibres Ltd Crescent Jute D S Ind Ltd Dawood Lawrencepur Dewan Mushtaq Textile Din TextileSPOT Ellcot Spinning Gadoon Textile Gillette Pakistan Gulshan Spinning Hira Textile Mills Ltd. Ibrahim Fibres Ideal Spinning Idrees Textile Int Knitwear XD Ishaq Textile Janana D Mal Kohinoor Ind Kohinoor Spinning Kohinoor Textile Masood Textile Mehmood Textile Mian Textile Mukhtar Textile Nagina Cotton Nishat (Chunian) Nishat Mills Pak Synthetic Paramount Spinning Prosperity Ravi Textile Reliance Weaving Rupali Poly Saif Textile Sally Textile Samin Textile XR Sana Ind XD Sargoda Spinning Service Ind Shahtaj Textile Shams Textile Suraj Cotton Tata Textile XD Thal Limited Treet Corp Tri-Star Poly Zephyr Textile Ltd

PE

Open

222 1.38 2415 3.20 16.92 840 5.31 20.00 70 2.20 4.00 133 0.59 2.00 4493 259.75 10.20 29 0.48 15.75 76 1.00 10.40 141 1.00 98 0.33 400 1.68 1.30 1150 3.05 2442 2.44 2.82 124 1.38 14.99 238 0.68 600 1.82 514 9.81 42.49 34 0.24 2.99 185 1.36 25.83 110 1.72 21.91 234 1.23 46.06 192 47.33 66.38 185 1.45 6.00 716 1.67 3.95 3105 3.32 36.22 99 0.64 3.45 180 2.34 4.58 32 5.77 9.99 97 0.89 4.00 43 0.64 17.20 303 1.51 1300 1.14 1.75 1455 2.83 5.50 600 1.04 21.46 150 1.73 62.80 221 0.54 145 0.45 187 1.22 16.55 1586 2.33 17.08 3516 5.79 47.17 560 6.68 6.61 158 1.34 8.00 185 2.33 16.50 250 4.82 2.08 308 1.25 11.88 341 5.74 35.05 264 4.44 88 0.36 4.00 134 7.13 55 4.38 30.23 312 0.39 1.50 120 4.78 186.00 97 1.79 18.93 86 1.11 16.25 180 1.30 34.93 173 0.69 15.30 256 4.00 105.78 418 7.83 43.42 215 0.55 594 2.60

High

High Low 933.12 904.16 Total cos Defaulter cos P/BV (x) ROE (%) 0.53 8.64 Low

Close Chg

1.38 1.00 1.00 -0.38 17.21 11.86 11.98 -4.94 21.15 19.50 21.15 1.15 4.00 3.00 4.00 0.00 2.78 2.00 2.49 0.49 10.65 9.71 10.39 0.19 18.75 16.75 17.01 1.26 11.45 9.50 11.45 1.05 1.00 0.58 0.60 -0.40 1.00 0.12 0.50 0.17 2.56 1.20 1.70 0.40 3.70 3.10 3.54 0.49 3.20 2.26 2.90 0.08 14.99 12.00 12.29 -2.70 1.05 0.55 0.80 0.12 1.80 1.44 1.50 -0.32 43.85 39.00 41.00 -1.49 3.50 2.43 2.51 -0.48 26.99 23.75 26.40 0.57 22.00 20.25 20.26 -1.65 48.30 44.25 45.98 -0.08 72.36 60.00 63.89 -2.49 8.39 5.51 7.99 1.99 4.85 3.82 4.68 0.73 36.10 34.50 35.89 -0.33 3.50 2.02 3.31 -0.14 4.65 4.05 4.10 -0.48 10.90 9.00 10.90 0.91 4.50 4.00 4.25 0.25 19.95 17.95 19.50 2.30 1.59 1.13 1.46 -0.05 1.46 0.71 1.25 -0.50 6.06 4.51 5.41 -0.09 22.24 18.55 20.30 -1.16 66.58 61.50 66.56 3.76 0.79 0.15 0.58 0.04 0.70 0.34 0.53 0.08 16.80 15.61 16.16 -0.39 19.15 16.80 18.42 1.34 49.90 46.62 49.24 2.07 6.95 5.30 6.15 -0.46 10.17 8.00 9.20 1.20 16.80 15.75 16.03 -0.47 2.30 1.75 1.88 -0.20 11.80 9.10 10.13 -1.75 35.50 34.60 35.02 -0.03 5.44 3.54 4.63 0.19 4.79 3.52 4.47 0.47 8.69 6.50 7.26 0.13 30.75 27.50 29.32 -0.91 2.45 1.40 1.51 0.01 195.25 183.00 185.55 -0.45 20.20 18.76 20.00 1.07 18.00 15.75 16.76 0.51 37.50 34.10 36.49 1.56 18.14 15.25 17.64 2.34 108.49 103.01 106.85 1.07 44.00 37.25 37.98 -5.44 0.73 0.26 0.34 -0.21 3.40 2.30 2.99 0.39

2009 Div BR (%) (%) -

10B -

Company Abbott (Lab)

PE

Open

High

Low

979

8.06

88.29

92.00

88.00

Ferozsons (Lab)

208

GlaxoSmithKline

1707

7.15 106.11 12.36

68.50

17.5

Volume

Change % Change -5.06 -0.55 Market cap 200-Day High 113,386.85 mn Div Yield (%) 200-Day Low 2.72 -

Last 60 days High Low

6500 2.21 6452504 20.45 106908 21.25 11490 4.90 5801 2.90 4518130 13.40 5160 18.75 14205 11.45 6094 1.96 5561 1.50 82508 2.56 467495 4.98 114400 5.00 19722 18.35 35815 2.25 2021140 2.49 5679 51.99 309110 3.99 17106 30.90 14983 25.45 20086 48.30 13213 73.00 88562 8.39 2353676 4.85 227799 41.00 53869 4.79 19693 5.35 20000 10.90 5120 4.99 10958 19.95 145007 2.00 7104 1.80 264897 6.30 26108 23.25 6239 74.50 22889 1.40 38544 0.99 25532 17.18 20206474 19.49 17742126 53.14 63548 7.90 18587 10.17 13235 21.47 2118754 4.69 103830 12.00 7214 36.75 101376 5.44 90239 4.98 48116 8.69 23951 38.40 59136 2.45 10626 228.00 94117 21.50 42111 18.00 429067 37.50 475463 19.70 201467 114.99 499789 49.49 20673 1.36 40159 4.99

0.40 11.86 17.55 3.00 1.35 8.55 9.50 7.50 0.55 0.10 0.70 2.93 2.23 7.66 0.48 1.44 37.08 1.52 23.75 20.25 33.80 57.50 5.31 2.52 34.30 2.02 2.55 7.00 2.86 9.95 1.01 0.56 4.00 18.55 59.00 0.01 0.25 12.00 14.64 40.81 5.30 6.00 15.75 1.38 6.91 31.35 2.01 2.74 5.02 27.25 0.31 176.50 14.75 15.00 29.50 12.75 97.00 37.20 0.26 1.50

2009 Div BR (%) (%)

2010 Div BR (%) (%)

30 20 20 - 15B 20 10 5 20 10B 7.5 35 70 - 10B 10 20B 20 10 6 8 5 15 15 100R 4050.2257B 60 - 20SD - 50R 15 20 25 45R 12.5 - 10B 10 10B 20 30 40 40 - 100R 35 60 5 200 20 45 20 15 50 25 20 20B 80 20B 4 -

Close 833.87 Listed cap 3,904.20 mn Payout (%) 44.54

Change % Change 9.81 1.19 Market cap 200-Day High 28,130.25 mn Div Yield (%) 200-Day Low 6.72 -

Volume

Last 60 days High Low

2009 Div BR (%) (%)

92.00

3.71

27651

95.50

120

-

20

-

113.00 104.58 109.00

2.89

667454

124.00

96.00

10

20B

-

20B

39108

83.77

65.00

50

-

-

-

66.50

68.48 -0.02

2,549.61

Total Equity (Rs in mn)

2,509.06

MA (100-day)

4.14

Revenue (Rs in mn)

MA (200-day)

3.97

Interest Expense

1st Support

4.15

Profit after Taxation

2nd Support

4.01

EPS 09 (Rs)

1st Resistance

4.49

Book value / share (Rs)

2nd Resistance

4.69

PE 10 E (x)

Pivot

4.35

PBV (x)

77.00

28.92 0.10 766.33 1.988 6.51 0.66

TRG closed up 0.01 at 4.28. Volume was 40 per cent above average and Bollinger Bands were 24 per cent wider than normal. The company's loss after taxation stood at Rs511.212 million which translates into a Loss Per Share of Rs1.56 for the nine months of fiscal year (9MFY10).

TRG is currently 8.3 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 TRG (mildly bullish). Trend forecasting oscillators are currently bullish on TRG.

NIB Bank Limited

10B -

Close Chg

68.59

Total Assets (Rs in mn)

4.23

Fundamental Highlights As on Dec 31, 2009

Technical Analysis Close 918.63 Listed cap 47,070.70 mn Payout (%) 16.68

High Low 840.99 812.41 Total cos Defaulter cos P/BV (x) ROE (%) 1.48 22.31

Paid up Cap(mn)

61.47

MA (10-day)

2010 Div BR (%) (%)

PHARMA AND BIO TECH Open 824.06 Turnover 1,088,102 P/E (x) 6.63

Fundamental Highlights As on Jun 30, 2009

Technical Analysis RSI (14-day)

Change % Change -9.22 -0.87 Market cap 200-Day High 5,540.31 mn Div Yield (%) 200-Day Low 2.02 -

Performance of SR Pharma and Bio Tech Index

Close 1,443.98 Listed cap 1,336.62 mn Payout (%) 131.49

Volume

90 100 20 150 10 -

20B 20B -

Change % Change 2.07 0.14 Market cap 200-Day High 189,255.77 mn Div Yield (%) 200-Day Low 0.98 -

Last 60 days High Low

31200 11.40 71114 7.80 60351 30.44 78152 16.98 7289 8.50 15675 65.29 174000 3.35 7843 1599.00 9350 11.90 50377 5.00

High Low 1,064.59 1,024.78 Total cos Defaulter cos P/BV (x) ROE (%) 0.33 10.64

Paid up Cap(mn)

Hussain Industries Pak Elektron Tariq Glass Ind

Performance of SR Industrial Engineering Index

Company

High

Open 1,058.70 Turnover 1,557,204 P/E (x) 3.10

INDUSTRIAL ENGINEERING Open 1,403.60 Turnover 1,328,417 P/E (x) 7.94

2010 Div BR (%) (%)

40 100 100 5 2

NCL closed up 1.34 at 18.42. Volume was 686 per cent above average (trending) and Bollinger Bands were 9 per cent narrower than normal.

The company's profit after taxation stood at Rs400.039 million which translates into an Earning Per Share of Rs4.05 for the nine months of fiscal year (9MFY10).

NCL is currently 2.5 per cent below its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into NCL (mildly bullish). Trend forecasting oscillators are currently bullish on NCL.

FOOD PRODUCERS Open 1,462.19 Turnover 651,482 P/E (x) 31.21

Change % Change -8.78 -0.91 Market cap 200-Day High 8,959.40 mn Div Yield (%) 200-Day Low 10.39 -

1199

Open 912.37 Turnover 28,249,610 P/E (x) 7.82

2009 Div BR (%) (%)

103.34

Performance of SR Food Producers Index

PERSONAL GOODS

Paid up Cap(mn)

ECOPACK Ltd

63.01 131.00 1.16 21.71 4.03 3.55 9.65 212.29 69.25 23.91 1.53

Performance of SR Personal Goods Index

Dost Steels Ltd

Company

78.39 209.00 2.24 28.80 6.50 5.70 14.50 287.00 89.99 27.85 3.25

INDUSTRIAL METALS AND MINING

Crescent Steel

Company

19187 8587 5869708 55649 92518 12250 115036 332201 30422 36663 52769

Performance of SR Industrial Metals and Mining Index Open 967.09 Turnover 411,558 P/E (x) 2.97 Company

71.00 67.15 70.00 0.10 140.00 136.10 137.97 -0.32 1.65 1.30 1.34 -0.04 23.38 21.76 22.52 0.42 4.65 4.03 4.13 -0.10 4.90 4.08 4.57 -0.17 11.00 9.65 10.71 0.14 230.30 217.00 224.68 8.19 77.49 71.58 73.80 1.05 25.65 24.15 24.50 0.12 2.44 1.75 2.19 -0.01

Performance of SR Household Goods Index

707

12,016.81

69.00 41.00

Change % Change -13.30 -1.14 Market cap 200-Day High 3,204.51 mn Div Yield (%) 200-Day Low 4.22 -

Paid up Cap(mn)

Century Paper

Total Assets (Rs in mn)

66.30

HOUSEHOLD GOODS

Close 1,154.94 Listed cap 1,186.83 mn Payout (%) 25.28

66.27

40.68

Performance of SR Forestry & Paper Index High Low 1,182.10 1,123.60 Total cos Defaulter cos P/BV (x) ROE (%) 0.45 7.47

Fundamental Highlights As on Jun 30, 2009

Technical Analysis RSI (14-day)

7.86

FORESTRY AND PAPER Open 1,168.25 Turnover 314,112 P/E (x) 5.99

2010 Div BR (%) (%)

5.28

1321

-

2.21 13.60

6537

1106 67.00

74

Nimir Ind Chemical

27.15

179.20 173.30 177.44 1.94

87813

21.15

2010 Div BR (%) (%)

78.00

Dewan Salman

27.79

2009 Div BR (%) (%)

24.53

5.69 161.49

3277

Last 60 days High Low

12.75

250 273

Engro Corporation Ltd

Change % Change 28.20 2.48 Market cap 200-Day High 264,529.18 mn Div Yield (%) 200-Day Low 6.85 -

164.00 157.16 161.85 0.36

BOC (Pak) Clariant Pak

Dynea Pak

Close 1,163.54 Listed cap 52,251.88 mn Payout (%) 48.81

2009 Div BR (%) (%)

Pak Int Cont.Terminal XD 1092

CHEMICALS Performance of SR Chemicals Index

Nishat (Chunian) Limited

PNSC XD

-

82.00

Open

High Low 718.86 682.84 Total cos Defaulter cos P/BV (x) ROE (%) 1.40 25.53

Alert ! Unusual Movements

9,929.57 9,976.41 9,664.60 h243.81

INDUSTRIAL TRANSPORTATION

Attock Petroleum

Pak Oilfields

Current High Low Change

Performance of SR Industrial Transportation Index

Mari Gas Company

800

225 187 22 434

KSE 30 Index

OIL AND GAS

Attock Refinery

National Refinery

Advanced Declined Unchanged Total

All Share Index

Performance of SR Oil and Gas Index Open 1,248.00 Turnover 21,314,672 P/E (x) 10.97 Company

KSE 100 Index

Symbols

2010 Div BR (%) (%)

Highnoon (Lab)

165

6.52

23.75

24.25

23.55

24.00

0.25

5686

25.79

22.10

25

-

-

-

Searle Pak

306

5.37

62.14

64.19

60.60

62.65

0.51

275745

64.19

53.36

15

15B

30

-

RSI (14-day)

68.41

Total Assets (Rs in mn)

MA (10-day)

2.69

Total Equity (Rs in mn)

41,643.27

MA (100-day)

3.02

Revenue (Rs in mn)

18,272.36

MA (200-day)

3.79

Interest Expense

208,118.96

12,872.36

1st Support

2.98

Profit after Taxation

2nd Support

2.93

EPS 09 (Rs)

0.171

1st Resistance

3.10

Book value / share (Rs)

10.30

2nd Resistance

3.17

PE 10 E (x)

Pivot

3.05

PBV (x)

691.05

0.30

NIB closed up 0.43 at 3.08. Volume was 219 per cent above average (trending) and Bollinger Bands were 0 per cent narrower than normal. The company's loss after taxation stood at Rs1.944 billion which translates into a Loss Per Share of Rs0.48 for the half year of current calendar year (1HCY10).

NIB is currently 18.7 per cent below its 200-day moving average and is displaying an upward 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 NIB (mildly bullish). Trend forecasting oscillators are currently bullish on NIB.

Atlas Bank Limited

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

58.75

Total Assets (Rs in mn)

MA (10-day)

1.93

Total Equity (Rs in mn)

2,482.06

MA (100-day)

2.08

Revenue (Rs in mn)

30,869.51 3,387.93

MA (200-day)

2.56

Interest Expense

3,189.33

1st Support

2.00

Loss after Taxation

2nd Support

1.85

EPS 09 (Rs)

1st Resistance

2.30

Book value / share (Rs)

2nd Resistance

2.45

PE 10 E (x)

Pivot

2.15

PBV (x)

(1,703.11) (3.405) 4.96 0.44

ATBL closed up 0.37 at 2.18. Volume was 30 per cent above average and Bollinger Bands were 81 per cent wider than normal. The company's loss after taxation stood at Rs942.176 million which translates into a Loss Per Share of Rs1.88 for the half year of current calendar year (1HCY10).

ATBL is currently 15.1 per cent below its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into ATBL (bullish). Trend forecasting oscillators are currently bullish on ATBL.

BOOK CLOSURES Company

From

To

Al-Meezan Mutual Fund Ghandhara Industries Habib ADM Meezan Balanced Fund Bolan Castings Cherat Cement Clover Pakistan Gatron (Industries) Ismail Industries Cherat Papersack Ecopack Ltd. JS Value Fund Bawany Air Prood Din Textile Mills Ghani Glass Glamour Textile Mills Nimir Ind Chemicals Pakistan Refinery Buxly Paints First Habib Bank Mod. Ghani Automobile Ghani Value Glass Gillette Pakistan Haydari Construction IBL Health Care K.E.S.C Allied Rent Mod. Baluchistan Wheels D.G.K Cement Ferozsons Lab

11-Oct 11-Oct 11-Oct 11-Oct 12-Oct 12-Oct 12-Oct 12-Oct 12-Oct 13-Oct 13-Oct 13-Oct 14-Oct 14-Oct 14-Oct 14-Oct 14-Oct 14-Oct 15-Oct 15-Oct 15-Oct 15-Oct 15-Oct 15-Oct 15-Oct 15-Oct 16-Oct 16-Oct 16-Oct 16-Oct

19-Oct 19-Oct 20-Oct 19-Oct 25-Oct 26-Oct 18-Oct 18-Oct 19-Oct 27-Oct 26-Oct 20-Oct 27-Oct 20-Oct 20-Oct 20-Oct 21-Oct 20-Oct 26-Oct 22-Oct 21-Oct 21-Oct 28-Oct 23-Oct 21-Oct 21-Oct 22-Oct 23-Oct 30-Oct 25-Oct

D/B/R 8.5(F) 40 5.5(F) 25,10(B) 15(F) 20 17.5 20,20(B) 5,10(R) 20,10(B) 25,10(B) 11 25 22.5 12.5 20(B)

INDICATIONS # Extraordinary General Meeting

Spot AGM/Date 01-Oct 01-Oct 01-Oct 04-Oct 04-Oct 04-Oct 05-Oct 06-Oct 06-Oct 06-Oct 07-Oct 07-Oct 08-Oct 08-Oct 08-Oct

19-Oct 20-Oct 25-Oct 26-Oct 18-Oct 18-Oct 18-Oct 27-Oct 26-Oct 20-Oct 26-Oct 20-Oct 20-Oct 20-Oct 21-Oct 20-Oct 25-Oct 25-Oct 21-Oct 21-Oct 29-Oct 23-Oct 21-Oct 21-Oct 22-Oct 23-Oct 30-Oct 21-Oct

7

Monday, October 11, 2010

FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 1,090.38 Turnover 23,814,363 P/E (x) 6.14

High Low 1,134.60 1,081.35 Total cos Defaulter cos P/BV (x) ROE (%) 0.79 12.84

Close 1,117.79 Listed cap 50,077.79 mn Payout (%) 62.56

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

Pakistan Telecomm Co A 37740 Telecard 3000 WorldCall Tele 8606

9.18 -

18.75 2.13 2.41

19.45 2.28 2.74

18.65 1.97 2.32

19.27 0.52 2.18 0.05 2.60 0.19

9875599 2113834 11820044

Company

Change % Change 27.41 2.51 Market cap 200-Day High 78,781.67 mn Div Yield (%) 200-Day Low 10.19 -

Last 60 days High Low 20.22 3.15 3.30

17.32 1.80 2.30

2009 Div BR (%) (%) 15 -

-

Atlas Insurance Century Insurance EFU General Ins. XB Habib Insurance IGI Insurance Pak Reinsurance PICIC Ins Ltd Premier Insurance Reliance Insurance XB Silver Star Insurance United Insurance

369 4.30 457 5.80 1250 28.68 400 7.09 718 13.06 3000 350 58.50 303 4.57 252 4.45 253 1.63 400 1.16

2010 Div BR (%) (%) 17.5 -

Company

Paid up Cap(mn)

PE

Open

High

Low

11572 1560 7932 1695 8803 191 1367 150

6.14 5.79 7.17 3.83 5.46 -

33.19 1.39 2.11 23.62 41.11 22.75 2.29 0.90

33.50 1.84 2.34 23.90 41.85 23.00 2.35 0.95

32.75 1.20 1.98 23.00 40.62 20.58 2.08 0.65

Hub Power Japan Power KESC Kohinoor Energy Kot Addu Power Sitara Energy Ltd Southern Electric Tri-star Power XD

Close 1,143.86 Listed cap 95,369.29 mn Payout (%) 104.13

Change % Change 3.12 0.27 Market cap 200-Day High 97,063.07 mn Div Yield (%) 200-Day Low 8.35 -

Close Chg

Volume

Last 60 days High Low

2009 Div BR (%) (%)

33.14 1.40 2.09 23.50 41.47 21.50 2.13 0.75

8805270 385346 2544520 59837 1498432 112270 1093758 8501

37.24 2.38 2.63 26.50 44.85 23.49 3.21 1.60

33.5 45 64.5 20 3

-0.05 0.01 -0.02 -0.12 0.36 -1.25 -0.16 -0.15

32.75 0.70 1.92 23.00 39.51 20.00 2.08 0.33

31R -

Open 1,651.65 Turnover 21,368,594 P/E (x) 12.72 Paid up Cap(mn)

Company Sui North Gas Sui South Gas

High Low 1,733.55 1,639.64 Total cos Defaulter cos P/BV (x) ROE (%) 1.45 11.41

Change % Change 57.31 3.47 Market cap 200-Day High 38,018.37 mn Div Yield (%) 200-Day Low 5.25 -

Last 60 days High Low

PE

Open

High

Low

Close Chg

Volume

5491 19.16 6712 4.58

30.67 29.43

33.40 30.23

30.50 29.16

32.58 1.91 29.99 0.56

14254502 33.40 7114092 30.70

25.00 16.00

2009 Div BR (%) (%) -

-

2010 Div BR (%) (%) 15

25B

BANKS Performance of SR Banks Index Open 938.12 Turnover 84,534,272 P/E (x) 6.88 Paid up Cap(mn)

Company

PE

Open

Allied Bank Limited 7821 5.64 51.05 Askari Bank 6427 6.08 14.49 Atlas Bank 5001 1.81 Bank Alfalah 13492 12.15 8.29 Bank AL-Habib 7322 6.92 31.09 Bank Of Khyber 5004 3.14 3.27 Bank Of Punjab 5288 8.21 BankIslami Pak 5280 3.23 Faysal Bank 6091 3.13 13.38 Habib Bank Ltd 10019 6.30 94.50 Habib Metropolitan Bank 8732 5.76 19.20 JS Bank Ltd 6128 2.33 KASB Bank Ltd 9509 2.35 MCB Bank Ltd 7602 9.12 188.39 Meezan Bank 6983 7.25 14.95 Mybank Ltd 5304 2.12 National Bank 13455 5.42 63.36 NIB Bank 40437 2.65 Royal Bank Ltd 17180 5.78 Samba Bank 14335 1.91 Silkbank Ltd 26716 13.64 3.01 Soneri Bank 6023 5.60 Stand Chart Bank 38716 9.00 6.50 United Bank Ltd 12242 6.15 51.95

High

High Low Close 981.26 927.84 967.73 Total cos Defaulter cos Listed cap - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 0.93 13.45 34.35 Low

Close Chg

53.50 50.00 52.19 1.14 14.97 14.23 14.71 0.22 2.55 1.61 2.18 0.37 9.29 8.20 9.11 0.82 32.49 30.80 32.11 1.02 3.21 2.57 3.14 -0.13 8.45 8.00 8.31 0.10 3.43 2.91 3.14 -0.09 13.80 13.10 13.60 0.22 99.45 93.00 97.93 3.43 19.89 18.02 19.46 0.26 2.90 2.30 2.43 0.10 2.89 2.30 2.54 0.19 197.90 187.63 195.59 7.20 15.00 14.05 14.93 -0.02 2.50 2.00 2.23 0.11 65.20 62.58 64.58 1.22 3.12 2.50 3.08 0.43 6.60 5.20 5.76 -0.02 2.05 1.70 1.87 -0.04 3.08 2.88 3.00 -0.01 5.97 5.05 5.75 0.15 6.67 6.18 6.30 -0.20 52.50 51.50 52.25 0.30

Last 60 days High Low

Volume 877050 548345 11662724 21205293 2278293 49384 2919781 245574 143751 577676 59243 2463603 841907 3403477 1091494 749523 5980033 13836354 298687 607117 12597713 191666 69428 1836151

Change % Change 29.61 3.16 Market cap 200-Day High 595,806.02 mn Div Yield (%) 200-Day Low 4.99 -

59.70 17.46 2.84 10.25 34.00 4.75 11.24 3.87 15.95 109.10 23.75 3.00 3.75 214.99 16.50 3.28 73.89 3.50 12.80 2.90 3.30 7.99 8.50 60.20

48.51 13.99 1.52 7.32 29.10 2.50 7.35 2.31 12.75 92.00 18.02 2.00 2.03 180.40 13.80 1.62 60.51 2.42 5.20 1.55 2.15 5.01 6.00 49.90

2009 Div BR (%) (%) 40 8 20 60 10 110 75 25

10B 20B 20B 10B 16B 26B 10B 5B 25B 10B

NON LIFE INSURANCE Performance of SR Non Life Insurance Index Open 616.99 Turnover 3,091,555 P/E (x) 9.00 Paid up Cap(mn)

Company

Adamjee Insurance XD

High Low 634.30 593.64 Total cos Defaulter cos P/BV (x) ROE (%) 0.47 5.20

Close 625.40 Listed cap 11,111.34 mn Payout (%) 79.54

Change % Change 8.41 1.36 Market cap 200-Day High 40,587.28 mn Div Yield (%) 200-Day Low 8.84 -

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1237 12.26

65.26

67.90

63.05

67.43 2.17

1100380

89.90

63.05

2009 Div BR (%) (%) 30

10B

2010 Div BR (%) (%) 10

-

31.00 11.95 55.20 13.89 79.10 19.40 4.16 10.60 7.25 10.00 7.15

27.10 9.30 34.76 10.04 66.02 12.50 1.66 8.11 6.02 6.00 4.02

40 40 35 35 30 20 -

10B 8.7B 15B 20B 16B

10 -

UPTO 5000 VOLUME

20B -

Paid up Cap(mn)

High Low 837.14 783.18 Total cos Defaulter cos P/BV (x) ROE (%) 2.94 3.85

Close 825.69 Listed cap 2,290.72 mn Payout (%) 355.53

Symbols SERT OTSU PAKD AASM GENP JKSM PTEC AGIC NJICL SALT TSML TRIBL SHCM PAKL FPRM CRTM NESTLE UNIM YOUW ATLH JDWS ALNRS GUSM SHTM IDYM PKGI SMCPL MERIT ADAMS JATM KCL SHEZ FTSM SJTM SARD ARUJ ADOS NONS NPSM SGPL FIMM SIEM ATEL FRSM JVDC FECTC DIIL PUNO SERF FANM ULEVER HUSS KOHP PMRS LIBM GATM CICL ISIL TSMF BUXL SHDT SSML EXIDE LEUL SFL ALQT FNEL PHDL CLOV SAPL SAPT HAJT MLCFPS SANSM THCCL TSBL NOPK COLG BATA PNGRS QUET FASM MUBT SSOM ACCM ASTM REDT SUHJ ASFL TRSM BWHL BTL WYETH MQTM PPVC MFTM SKFL ANSS SKRS ICL KSBP GRYL GATI PRET DNCC FZTM AKGL MZSM NAKI SANE PSEL SHJS SCL SPLC AABS KML FCONM KASBM COTT BHAT HINO GFIL SFAT BGL SING CSIL BWCL JOPP DADX MRNS MUCL JUBS KOHTM SUTM

Change % Change 5.97 0.73 Market cap 200-Day High 8,852.02 mn Div Yield (%) 200-Day Low 4.66 -

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

59.70

63.00

57.15

60.50 0.80

20206

84.99

51.25

5513.33B

-

-

New Jub Life Insurance

627 52.75

42.00

2009 Div BR (%) (%)

42.20

40.00

42.20 0.20

23011

46.00

34.50

10

-

-

-

2010 Div BR (%) (%)

FINANCIAL SERVICES Performance of SR Financial Services Index Open 356.81 Turnover 50,307,798 P/E (x) 0.43 Paid up Cap(mn)

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

High Low 364.47 327.47 Total cos Defaulter cos P/BV (x) ROE (%) 0.16 37.22

PE

Open

High

Low

225 450 6.56 3750 2.29 150 250 441 2121 600 2.57 2849 2878 1.78 626 0.30 7633 508 500 1000 12.56 821 4.13 775 514 978 5.23

0.59 26.00 22.60 1.44 2.14 2.80 1.78 7.86 0.53 4.12 1.88 9.79 2.64 33.60 5.73 5.00 1.61 2.12 2.24

0.67 26.80 23.54 1.45 2.38 2.70 2.01 8.69 0.75 4.75 2.12 9.89 2.69 34.90 6.29 5.29 1.70 2.90 2.40

0.45 24.62 20.90 1.25 1.63 1.85 1.60 7.20 0.44 3.32 1.65 8.80 1.96 26.00 5.10 4.71 1.41 1.65 2.05

Close Chg 0.58 26.30 23.15 1.44 1.90 2.58 1.75 7.39 0.67 4.32 1.82 9.16 2.36 26.38 5.65 5.25 1.56 2.50 2.30

-0.01 0.30 0.55 0.00 -0.24 -0.22 -0.03 -0.47 0.14 0.20 -0.06 -0.63 -0.28 -7.22 -0.08 0.25 -0.05 0.38 0.06

Close 349.95 Listed cap 30,336.44 mn Payout (%) 4.60

Volume 120949 258113 14520388 15027 19258 7005 59731 11175 345186 527161 326004 27804777 4010649 120536 1401144 71471 283353 12099 5048

Change % Change -6.86 -1.92 Market cap 200-Day High 25,577.64 mn Div Yield (%) 200-Day Low 10.65 -

Last 60 days High Low

2009 Div BR (%) (%)

1.15 50.12 35.65 2.69 3.36 3.20 2.43 9.00 1.23 5.40 2.84 15.47 6.48 42.00 8.65 5.95 2.89 3.80 3.49

15 25B 30 - 11.5 - 10B -243.778B 10 150 -231.08R -

0.42 24.62 20.90 0.50 1.55 1.85 1.17 6.90 0.44 2.54 1.17 8.80 1.96 26.00 5.10 3.66 1.35 1.65 1.50

2010 Div BR (%) (%) 20B 10B -

EQUITY INVESTMENT INSTRUMENTS Performance of SR Equity Investment Instruments Index

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

12477 19429 129474 17227 58296 1613745 23233 72659 6354 16768 8350

850 32.88

Company

Close 1,708.96 Listed cap 12,202.80 mn Payout (%) 66.79

0.43 -0.18 -1.20 -0.30 1.94 0.55 0.12 -0.43 -0.48 -0.64 0.02

EFU Life Assurance XB

Company

50 - 7.8R 15 50 20 -

GAS WATER AND MULTIUTILITIES

29.15 10.32 36.14 10.21 73.94 14.11 2.34 8.77 6.50 6.54 4.65

LIFE INSURANCE

2010 Div BR (%) (%)

Performance of SR Gas Water and Multiutilities Index

28.76 9.42 34.76 10.04 70.30 12.86 1.85 8.39 6.20 6.48 4.60

Open 819.71 Turnover 85,517 P/E (x) 76.37

Performance of SR Electricity Index High Low 1,163.03 1,123.24 Total cos Defaulter cos P/BV (x) ROE (%) 1.17 9.35

30.00 10.88 38.00 10.79 75.00 14.35 3.28 9.44 6.98 8.14 5.63

Performance of SR Life Insurance Index

-

ELECTRICITY Open 1,140.74 Turnover 26,593,334 P/E (x) 12.46

28.72 10.50 37.34 10.51 72.00 13.56 2.22 9.20 6.98 7.18 4.63

Open 1,025.02 Turnover 15,136,956 P/E (x) 6.51 Company

Paid up Cap(mn)

1st Fid Leasing AL-Meezan Mutual F. XD Atlas Fund of Funds B R R Guardian Mod. Crescent St Modaraba Elite Cap Modaraba Equity Modaraba First Capital Mutual F. First Dawood Mutual F. Golden Arrow H B L ModarabaSPOT Habib Modaraba JS Growth Fund JS Value Fund Meezan Bal. Fund XD Mod Al-Mali NAMCO Bal. Fund Nat Bank Modaraba Pak Modaraba Pak Prem Fund Pak Strat Fund PICIC Energy Fund PICIC Growth Fund PICIC Inv Fund XD Prud Modaraba 1st Punjab Modaraba Stand Chart Mod. XD U D L Modaraba

High Low 1,048.16 995.42 Total cos Defaulter cos P/BV (x) ROE (%) 0.27 4.09

PE

Open

High

Low

264 1375 2.36 525 2.03 780 200 2.80 113 4.45 524 300 3.53 581 760 3.89 397 5.74 1008 4.51 3180 37.50 1186 1200 2.71 184 1000 2.99 250 6.71 125 1.11 1698 3.71 3000 5.39 1000 2.71 2835 2.34 2841 1.82 872 2.63 340 454 4.97 264 3.38

1.37 6.96 3.15 1.30 0.50 2.25 0.97 3.25 1.70 3.70 6.49 6.00 3.00 2.93 5.90 1.04 3.23 7.50 0.90 7.74 6.99 4.55 8.14 3.60 1.00 1.24 8.40 6.10

1.50 7.20 3.60 1.29 0.80 2.90 1.19 3.49 1.77 3.88 6.80 6.00 3.19 3.05 6.37 1.22 2.99 7.45 0.90 7.95 7.00 5.10 8.68 3.88 1.00 1.94 9.10 6.51

1.05 6.10 3.15 1.05 0.45 2.51 0.90 2.76 1.42 3.50 6.30 5.90 2.70 2.61 5.40 0.98 2.26 7.02 0.30 7.60 6.85 4.52 7.92 3.50 0.87 0.98 7.81 5.90

Close Chg 1.05 6.11 3.59 1.10 0.70 2.89 1.10 3.28 1.63 3.58 6.49 6.00 3.00 3.04 5.60 0.98 2.99 7.05 0.90 7.80 6.90 5.09 8.52 3.61 1.00 1.20 8.75 6.48

-0.32 -0.85 0.44 -0.20 0.20 0.64 0.13 0.03 -0.07 -0.12 0.00 0.00 0.00 0.11 -0.30 -0.06 -0.24 -0.45 0.00 0.06 -0.09 0.54 0.38 0.01 0.00 -0.04 0.35 0.38

Close 1,025.10 Listed cap 29,771.58 mn Payout (%) 104.19

Change % Change 0.08 0.01 Market cap 200-Day High 17,378.20 mn Div Yield (%) 200-Day Low 28.15 -

Volume

Last 60 days High Low

2009 Div BR (%) (%)

35547 487169 8576 175283 1893897 316431 136654 141857 358049 695066 239357 274745 791576 2626731 104114 9516 22888 6061 13409 531681 3567016 53282 603561 1621074 215750 51890 51748 86202

2.24 7.25 4.20 2.43 0.90 3.49 1.50 3.80 2.09 3.88 6.80 7.49 4.39 3.98 7.49 1.25 3.70 8.45 1.07 9.86 8.10 6.49 10.55 5.00 1.20 2.00 10.99 6.51

4.5 5 20 10 5 16.5 10

1.01 6.10 2.53 0.90 0.16 1.65 0.76 0.99 1.36 2.32 4.80 5.56 2.70 2.31 5.40 0.56 2.25 6.10 0.25 7.00 6.01 4.00 7.60 3.50 0.70 0.57 7.75 5.00

2010 Div BR (%) (%)

- 18.5 0 1.2 5 17 11 21 5 10 - 15.5 15 10 - 18.6 - 11.53 5 20 10 3 17 - 12.5

-

Open 0.55 27.52 115 27.97 0.84 6 1.85 11.54 54.37 25.79 31.99 2 11 1.65 8.4 21.64 1904.75 0.24 1.23 98.4 65.73 42.5 5.23 0.93 234.2 6.06 6.34 15 12 2.1 7.2 95.26 3.44 1 1.4 3.65 20.82 11.26 20.2 0.36 67.08 1176.97 17.5 18.5 61.28 5.43 17.94 37.15 0.12 3.25 4024.95 13.17 5 36.68 54.65 22 48.26 75 1.99 12.26 8.5 2.35 148.49 2.5 99.28 2.6 9.86 57.57 45.44 121 100 0.74 6.98 13.9 19.27 2 25.76 693 490 5.35 32.3 33.47 1.25 3.5 0.34 2.5 0.93 11.98 4.8 2.4 30.6 50.57 941.92 8 2 0.99 1.25 6 3 22.92 82 2.35 39.5 29.47 2.22 305.18 3.51 4.85 16.49 1.8 160.25 52.19 54.82 0.66 89 2.75 1.91 1.51 1.26 187.1 120 4.3 3 1.8 17.61 5.22 27.2 10.5 25.51 52.98 11.95 2.49 1.2 32.03

High 0.55 29.59 113.52 32.86 0.95 6.6 2.2 11.89 55.1 27.75 30.6 2 15 2.5 8.8 22.72 2023.9 0.3 1.69 99 66 42.68 7.13 1 241.24 6.88 7.25 17 12 3.99 7.2 100 4.39 1.05 1.64 4.75 20.85 11.26 23 0.75 69.95 1207.5 17.01 19.4 63 6 17.98 35.5 0.17 2.7 4079.99 14 5.69 38 58.01 22 50.9 76.45 2.33 11.5 8.6 2.39 146.99 2.5 100 3.75 10.92 64 46.9 124.99 115.76 0.99 7.73 14 19.97 2.44 24.48 740.25 494 5.48 33.91 34 1.39 3.1 0.34 2.5 1.2 12 4 3.45 31.1 51.45 970 8.98 2 0.99 1.25 6 3 22.5 83.49 2.9 42.9 29.48 1.8 360 5.5 4.95 16.49 3.11 152.24 62.5 55 0.63 98.1 3.57 2.34 1.75 2 180 121.32 4.45 3 1.85 18.5 6.25 26 10.5 25.51 53.4 12.95 2.99 1.5 33.63

Low

Close

0.14 27.75 97.34 27.31 0.6 5.12 1.1 10.54 52.25 26.05 28 1.26 12 1.65 8.45 20.5 1820.02 0.1 1.08 94 64.61 39.25 5.2 0.7 209.5 5.5 6 14.47 11.15 2.9 4.8 94.05 0.5 0.43 1.4 4 19 11.05 19.95 0.32 57 1120 17 18.3 57.99 4.5 14.93 34 0.15 2.5 3825 12 4.9 32.5 54.55 19.99 47.5 70.5 1.01 10.5 8.5 2.11 136 1.5 94.05 2.7 8.86 54.7 44.1 115.9 103.36 0.69 6.74 13.8 18.6 2.44 21 680 446.61 5.35 30.23 31.1 0.8 3 0.3 2.5 0.93 12 3 1.75 29 49 871 6.75 1 0.62 1.25 6 3 21.8 78 1.36 38.5 28.11 1.71 318.99 3.5 4.85 15.6 2.11 140 52 51.05 0.55 91.99 2.17 1 1.51 1.49 151.15 110.05 3.21 3 1.25 17.61 4.08 25.8 8.5 24.24 52.7 11.1 2.49 1.2 33.63

0.14 28.06 97.34 32.79 0.95 6.5 2.15 11.06 55 26.23 28.5 1.87 15 2.5 8.8 20.5 1961.62 0.13 1.23 97.69 66 42 7.13 0.95 209.71 6.88 6.51 16.9 11.23 3.99 4.84 98 1.96 0.43 1.4 4.75 19.62 11.1 23 0.37 57.65 1150 17 18.55 59.36 5 16.7 34 0.17 2.7 3990 13.5 5.1 33.01 54.6 20.99 47.75 76.45 2.12 10.5 8.6 2.38 139.74 1.89 99.93 3.75 10.32 56.05 44.13 116.2 103.36 0.99 7.72 14 19.75 2.44 21 716.71 446.61 5.48 30.23 31.13 1.39 3.05 0.3 2.5 0.98 12 3 2.54 30.43 50 910 7.75 1.05 0.99 1.25 6 3 22.5 78.05 1.61 40.45 29 1.8 353.16 3.5 4.95 16 3.01 148.98 60.9 53.6 0.63 95 2.17 1.48 1.75 1.98 162.35 119.83 3.26 3 1.26 18.5 6.25 25.99 10 24.24 53.25 12.95 2.5 1.5 33.63

Change

Vol

-0.41 0.54 -17.66 4.82 0.11 0.5 0.3 -0.48 0.63 0.44 -3.49 -0.13 4 0.85 0.4 -1.14 56.87 -0.11 0 -0.71 0.27 -0.5 1.9 0.02 -24.49 0.82 0.17 1.9 -0.77 1.89 -2.36 2.74 -1.48 -0.57 0 1.1 -1.2 -0.16 2.8 0.01 -9.43 -26.97 -0.5 0.05 -1.92 -0.43 -1.24 -3.15 0.05 -0.55 -34.95 0.33 0.1 -3.67 -0.05 -1.01 -0.51 1.45 0.13 -1.76 0.1 0.03 -8.75 -0.61 0.65 1.15 0.46 -1.52 -1.31 -4.8 3.36 0.25 0.74 0.1 0.48 0.44 -4.76 23.71 -43.39 0.13 -2.07 -2.34 0.14 -0.45 -0.04 0 0.05 0.02 -1.8 0.14 -0.17 -0.57 -31.92 -0.25 -0.95 0 0 0 0 -0.42 -3.95 -0.74 0.95 -0.47 -0.42 47.98 -0.01 0.1 -0.49 1.21 -11.27 8.71 -1.22 -0.03 6 -0.58 -0.43 0.24 0.72 -24.75 -0.17 -1.04 0 -0.54 0.89 1.03 -1.21 -0.5 -1.27 0.27 1 0.01 0.3 1.6

5000 4912 4886 4880 4865 4553 4381 4246 4093 4037 3953 3885 3820 3702 3600 3576 3508 3500 3404 3399 3255 3187 3092 3001 2944 2877 2872 2707 2706 2699 2666 2664 2609 2608 2500 2500 2414 2196 2171 2139 2112 2067 2060 2049 2040 2030 2004 2000 2000 1990 1891 1876 1870 1841 1821 1803 1747 1712 1711 1608 1598 1561 1530 1479 1411 1372 1372 1352 1275 1273 1267 1250 1233 1160 1153 1100 1097 1072 1057 1051 1026 1011 1001 1000 1000 1000 1000 1000 1000 760 690 615 520 506 501 501 500 500 500 490 476 460 442 440 432 425 402 400 400 378 377 353 352 341 310 306 242 236 235 235 226 216 212 209 200 200 158 126 110 105 101 101 100 100

BOARD MEETINGS

Bank Alfalah Ltd

KSE 100 INDEX

Dera Ghazi Khan Cement Co Ltd

Nishat Mills Ltd

Company

Date

Time

Ghani Gases Limited Sanghar Sugar Mills Limited Bank Al Habib Ltd Descon Chemicals Ltd KSB Pumps Company Limited Descon Oxychem Ltd Otsuka Pakistan Limited National Investment Trust Ltd Latif Jute Mils Limited IGI Investment Bank Ltd. Pakistan Tobacco Co Ltd Pakistan Petroleum Ltd. Tri-Pack Films Ltd. Packages Ltd.

11-Oct 11-Oct 12-Oct 12-Oct 12-Oct 13-Oct 13-Oct 14-Oct 15-Oct 18-Oct 18-Oct 19-Oct 19-Oct 22-Oct

3:00 11:30 12:30 2:30 11:30 2:30 5:30 11:00 3:30 3:00 1:00 10:30 11:00 11:30

TECHNICAL LEVELS

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position

Fair Value

*Arif Habib Ltd

14

Buy

*Arif Habib Ltd

10.25

Accumulate

AKD Securities Ltd

TFD Research

14.01

Positive

TFD Research

68.29

Support 1

10,197.85

10,110.28

Support 2

10,135.15

MA (10-day)

10,058.85

Resistance 1

10,317.00

MA (100-day)

9,871.90

Resistance 2

10,373.50

Technical Analysis

MA (200-day)

9,942.38

Pivot

10,254.35

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

Pakistan Telecommunication Co Ltd

Brokerage House AKD Securities Ltd

Technical Outlook

44

Buy

43.29

Buy

Positive

TFD Research

36.85

Positive

Technical Analysis

Technical Outlook

Leverage Position

63.53 47.28 46.32 52.94 47.74 48.26

Fauji Fertiliser Bin Qasim Ltd

Brokerage House *Arif Habib Ltd

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

175.80 8,656.39 N/A N/A N/A 27.97

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

Leverage Position

53.43 24.14 24.91 27.45 24.07 24.37

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

182.55 4,561.92 N/A N/A N/A 21.28

Fair Value 33 32.06 29.1

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

60.02 27.57 27.71 29.31 28.00 28.17

Pakistan Oilfields Ltd

Hub Power Co Ltd

Rs Recommendations

Brokerage House

Fair Value

Rs Recommendations

Brokerage House

Fair Value

Rs Recommendations

Buy

*Arif Habib Ltd

48

Buy

*Arif Habib Ltd

261

Buy

Accumulate

AKD Securities Ltd

44

Buy

AKD Securities Ltd

296.60

Buy

Neutral

TFD Research

Positive

TFD Research

281.35

Technical Outlook

Technical Outlook 584.63 11,265.91 N/A N/A N/A 7.47

*Arif Habib Ltd AKD Securities Ltd

* Target price for Dec-10 & **Net Open Interest in future market

AKD Securities Ltd

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

Buy Buy

DGKC closed up 0.96 at 24.99. Volume was 88 per cent above average and Bollinger Bands were 21 per cent narrower than normal.

DGKC is currently 9.0 per cent below 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 DGKC at a relatively equal pace. Trend forecasting oscillators are currently bearish on DGKC.

Positive

59.54 18.95 18.82 19.59 19.05 19.05

65 59.97 74.2

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

Rs Recommendations

* Target price for Dec-10 & **Net Open Interest in future market

TFD Research

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

674.58 6,145.41 N/A N/A N/A N/A

Fair Value

NML closed up 2.07 at 49.24. Volume was 222 per cent above average (trending) and Bollinger Bands were 58 per cent narrower than normal.

NML is currently 7.0 per cent below its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into NML (mildly bullish). Trend forecasting oscillators are currently bullish on NML.

Buy

Leverage Position

Brokerage House

* Target price for Dec-10 & **Net Open Interest in future market

Rs Recommendations

Technical Analysis

Rs Recommendations

BAFL closed up 0.82 at 9.11. Volume was 336 per cent above average (trending) and Bollinger Bands were 4 per cent wider than normal.

BAFL is currently 14.9 per cent below its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into BAFL (bullish). Trend forecasting oscillators are currently bullish on BAFL. Momentum oscillator is currently indicating that BAFL is currently in an overbought condition.

24.04 30.5

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

Fair Value

Technical Outlook

Leverage Position

70.68 8.38 8.88 10.70 8.67 8.75

Fair Value

TFD Research

Brokerage House

AKD Securities Ltd

MA (5-day)

KSE 100 INDEX closed up 218.04 points at 10,260.48. Volume was 96 per cent above average and Bollinger Bands were 54 per cent narrower than normal. As far as resistance level is concern, the market will see major 1st resistance level at 10,317.00 and 2nd resistance level at 10,373.50, while Index will continue to find its 1st support level at 10,197.85 and 2nd support level at 10,135.15.

KSE 100 INDEX is currently 3.2 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 volume flowing into and out of INDEX at a relatively equal pace. Trend forecasting oscillators are currently bullish on INDEX.

Rs Recommendations

326.94 9,340.63 N/A N/A N/A 0.01

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

40.18 33.13 33.95 33.69 33.04 33.13

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

Positive

Technical Outlook

Technical Outlook

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

44.9

810.01 26,843.67 N/A N/A N/A N/A

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

71.88 237.78 224.88 231.36 240.31 239.93

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

107.94 26,395.92 N/A N/A N/A 70.93

* Target price for Dec-10 & **Net Open Interest in future market

* Target price for Dec-10 & **Net Open Interest in future market

* Target price for Dec-10 & **Net Open Interest in future market

* Target price for Dec-10 & **Net Open Interest in future market

PTC closed up 0.52 at 19.27. Volume was 32 per cent above average and Bollinger Bands were 59 per cent narrower than normal.

PTC is currently 1.6 per cent below 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 PTC at a relatively equal pace. Trend forecasting oscillators are currently bullish on PTC.

FFBL closed up 1.42 at 28.57. Volume was 81 per cent above average and Bollinger Bands were 28 per cent narrower than normal.

FFBL is currently 0.7 per cent below its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as 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.

HUBC closed down -0.05 at 33.14. Volume was 2 per cent above average and Bollinger Bands were 45 per cent narrower than normal.

HUBC is currently 1.6 per cent below 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 HUBC at a relatively equal pace.

Trend forecasting oscillators are currently bearish on HUBC.

POL closed up 9.91 at 244.55. Volume was 31 per cent above average and Bollinger Bands were 31 per cent narrower than normal.

POL is currently 5.7 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 very strong flows of volume into POL (bullish). Trend forecasting oscillators are currently bullish on POL. Momentum oscillator is currently indicating that POL is currently in an overbought condition.

Company Al-Abbas Cement Allied Bank Limited Attock Cement Arif Habib Limited Arif Habib Securities Adamjee Insurance Askari Bank Azgard Nine Attock Petroleum Attock Refinery Bank Alfalah BankIslami Pak Bank Of Punjab Dewan Cement DGK 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 Indus Motors JOV and CO Japan Power JS Bank Ltd Jah Siddiq Co Kot Addu Power KESC 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 PIAC (A) Pioneer Cement Pak Oilfields Pak Petroleum Pak Suzuki PSO XD PTCLA Shell Pakistan Sui North Gas Sitara Peroxide Sui South Gas Telecard TRG Pakistan United Bank Ltd WorldCall Tele

RSI 1st 2nd (14-day) Support 47.11 3.05 2.85 53.07 51.40 50.65 35.34 62.45 61.65 35.43 25.95 25.60 47.55 22.60 22.05 47.54 66.45 65.50 51.30 14.55 14.35 52.58 10.25 10.10 82.29 364.05 359.55 62.67 83.45 80.75 70.68 8.95 8.85 50.27 3.00 2.90 49.93 8.10 7.90 56.15 1.55 1.50 53.43 24.75 24.50 46.51 1.35 1.25 46.24 2.00 1.90 35.24 35.10 34.05 49.12 59.35 58.15 53.69 174.55 171.70 49.58 13.55 13.45 44.12 4.70 4.65 60.02 28.15 27.70 58.88 106.40 105.45 57.36 95.45 93.00 40.18 32.95 32.75 58.12 120.20 118.00 48.99 220.10 215.55 30.99 2.20 2.05 46.22 1.20 0.95 51.15 2.35 2.30 44.21 9.00 8.90 50.38 41.30 41.10 51.47 1.95 1.80 63.82 72.30 72.00 59.60 194.25 192.95 41.10 2.75 2.65 53.39 64.05 63.50 66.27 17.90 17.40 44.97 17.85 17.35 68.41 3.00 2.95 40.74 1.25 1.20 63.53 48.70 48.15 58.71 146.70 146.15 55.43 2.80 2.70 47.43 1.45 1.35 55.96 2.15 2.05 55.93 7.40 6.75 71.88 241.80 239.05 42.81 178.40 176.55 46.36 72.95 72.10 66.95 273.30 267.50 59.54 19.05 18.90 42.71 193.10 192.25 74.06 32.25 31.90 50.36 8.25 8.00 78.27 29.75 29.45 49.59 2.10 2.00 61.47 4.15 4.00 45.26 52.05 51.80 57.57 2.50 2.35

1st

2nd

Resistance 3.40 3.50 53.20 54.25 64.40 65.55 26.75 27.15 23.60 24.10 68.15 68.90 14.95 15.15 10.60 10.80 371.55 374.50 87.50 88.80 9.25 9.40 3.35 3.55 8.50 8.65 1.65 1.70 25.30 25.55 1.55 1.65 2.20 2.30 37.10 38.05 62.35 64.15 179.75 182.10 13.75 13.85 4.80 4.90 29.05 29.50 108.15 108.95 99.90 101.90 33.40 33.70 123.90 125.40 229.10 233.55 2.45 2.55 1.70 2.05 2.50 2.60 9.30 9.50 41.60 41.80 2.30 2.50 73.15 73.65 197.40 199.25 2.90 3.00 65.15 65.75 19.05 19.65 18.75 19.10 3.15 3.20 1.40 1.50 49.85 50.45 147.70 148.15 3.00 3.10 1.70 1.80 2.35 2.45 8.55 9.05 246.30 248.05 181.75 183.25 74.80 75.85 282.65 286.20 19.45 19.65 194.90 195.85 33.15 33.75 8.85 9.15 30.25 30.50 2.30 2.35 4.50 4.70 52.50 52.70 2.75 2.85

Pivot 3.15 52.45 63.60 26.35 23.05 67.20 14.75 10.45 367.05 84.80 9.15 3.20 8.25 1.60 25.05 1.45 2.10 36.05 61.15 176.90 13.65 4.75 28.60 107.20 97.45 33.20 121.70 224.55 2.30 1.50 2.45 9.20 41.45 2.15 72.80 196.10 2.85 64.60 18.55 18.20 3.05 1.35 49.30 147.15 2.90 1.55 2.25 7.90 243.55 179.90 73.95 276.85 19.25 194.05 32.80 8.60 30.00 2.20 4.35 52.25 2.60

President announces life insurance for journalists 8

Monday, October 11, 2010

AIA flags series of business risks-to-be

LONDON: A city worker walks past the Lloyds of London building in London's financial district.-Reuters

Insurance can spur climate change investment: S&P LONDON: Climate change commentators have often spoken of capital markets as a source of funding, but many hurdles have to be overcome before institutional investors will allocate money to environmental projects in developing countries, according to Standard & Poor's (S&P).

There is a yawning gap of around $200 billion between the current level of climate change finance and even the conservative estimates by the World Bank of the amount required by developing countries, the ratings agency said in a report released on Tuesday.

Climate action in developing countries -- specifically mitigation and adaptation initiatives -- requires important financing by the international community, from both public and private sources.

Risk transfer instruments, especially insurance, can play a huge role in offsetting

the barriers faced by capital market investors, who will invest only if they can earn adequate risk-adjusted returns on their capital, said S&P. "The harsh reality facing both policymakers and climate campaigners is that soft capital is in limited supply -- investors tend to seek an appropriate return, even in climate change investments," the report said.

The long-term nature of capital commitments in climate change financing and the relatively short time frame of climate change regulations are deterrents for capital market investors, as is the high probability of insufficient returns.

Some countries pose a risk for climate change investment because the possibility of war or expropriation may scare off climate change finance -- but this could be countered by political risk insurance, said S&P. Finance structures such as

bond markets have the depth and scale of investment required to cater for climate change investments, said S&P. Investors are already familiar with bond instruments, and as of 2009, the size of the worldwide bond market was an estimated $82.2 trillion, the report said.

"Since international policymakers view the mobilization of substantial amounts of private sector capital into climate change financing within the next two years as a major priority, we see the results of this risk-ranking exercise as a useful illustration of the obstacles that need to be cleared in order to achieve this aim," said S&P. Some investors have bought green bonds, which help poor countries cut greenhouse gas emissions and adapt to climate change.

In December 2009, the California State Teachers' Retirement System, one of

the world's largest pension funds, bought green bonds in a $130 million issuance by the World Bank.

Other alternative risk transfer instruments have been used to protect countries from the risk of natural catastrophes, which will increase the frequency of bad weather according to climate change commentators. Munich Re, the world's biggest reinsurer, said there had been 725 natural hazard occurrences linked to weather in the first nine months of the year, which is a strong indication of climate change. Catastrophe bonds, in which insurers transfer the risk of natural hazards such as hurricanes to the capital markets, have been used to protect countries from such risks. In October 2009, Swiss Re worked with the Fund for Natural Disasters of Mexico to issue a $290 million cat bond to protect Mexico against earthquake risk. -Reuters

Insurers may fall short of new Swiss standards New Swiss insurance standards to come into effect in 2011 ZURICH: Several life insurers may find themselves on wobbly ground when evaluated under Swiss capital adequacy standards that come into force next year, the head of Swiss financial regulator FINMA was quoted as saying on Sunday.

The Swiss Solvency Test, designed to ensure insurers have enough capital to cover their risks, will come into force in 2011.

When asked by the paper SonntagsZeitung how many life insurers currently would fail the SST, FINMA Director Patrick Raaflaub told the newspaper: "Flunk is too extreme. Given

the current interest rate situation life insurers are finding things particularly tough.

Several could lie in the region that we call orange under our traffic-light system."

"In this area corrective measures are intended," he added without naming any companies. Raaflaub said that with life insurers a standard model was not appropiate for assessing the riskiness of their products. "We have decided provisionally to allow several models," Raaflaub was quoted as saying. "The insurers are allowed to use their internal models on a provisional basis, but with additional risk premia." Insurer Zurich Financial

Services AG said in late 2009 it had more than twice as much capital as the minimum required under the SST. Similar to Switzerland, the EU's Solvency II set of rules takes effect at the start of 2013 to require insurers to become more sophisticated in how they match risks on their books to the capital they must hold to cover those risks.

In addition to the new insurance standards, Switzerland is also weighing new rules for banks deemed 'too big to fail' that would exceeded the stipulations of the new Basel III global banking regulations.

The new rules would require big banks UBS and Credit

Suisse to hold an equity Tier 1 capital ratio of at least 10 percent. The plan has yet to be voted on by parliament.

Raaflaub told the SonntagsZeitung that the new bank rules would likely cause bonuses to shrink as investors became more aware of management's remuneration.

The new rules require higher capital and liquidity standards, and also require the big banks to split off systemically vital functions -- such as domestic lending -- in the event of an insolvency. The rules, however, have left it up to the banks to figure out how best to organise themselves so as to fulfil this latter criterion. -Reuters

HONG KONG: AIA Group Ltd, which aims to raise about $15 billion through a Hong Kong listing, flagged a series of business risks including the collapsed bid from Prudential Plc as it launched the share offering on Tuesday.

AIA, the Asian life insurance business of American International Group Inc, also said in the preliminary prospectus filed to the Hong Kong Stock exchange that it would not pay a dividend before 2011.

AIG is planning to sell 48.6 percent stake in AIA to raise up to $14.86 billion, a document obtained by Reuters showed late on Monday. The net proceeds will be used to repay financial aid AIG received from the U.S. government.

AIG revived AIA's IPO after Prudential cut its takeover offer for AIA to $30.4 billion from $35.5 billion. In contrast, the IPO would value AIA at as much as $30.5 billion, sources told Reuters on Monday.

"The terminated Prudential transaction also adversely impacted and may continue to adversely impact agency recruitment and new business production by our agents," AIA said in its prospectus.

"We cannot assure you that our business and prospects will not be materially and adversely affected by the terminated Prudential transaction."

At the offering price range, AIA is valued at 1.2 to 1.3 times 2010 basis embedded value estimated by bookrunners, according to a term sheet obtained by Reuters on Tuesday.

By comparison, China Life Insurance Co Ltd, China's No.1 life insurer, traded at 2.4 times forecast 2010 embedded value, while No.2 life insurer Ping An Insurance (Group) Co of China Ltd traded at 2.6 times forecast 2010 embedded value, according to a BofA Merrill Lynch research report.

"Most retail investors are short-term oriented and they prefer to invest in small to mid-cap IPOs," said William Lo, an analyst at Ample Finance. "AIA is not a pure Chinese insurer, and China accounts for only a small proportion of its business, so investors are not treating AIA as a high growth stock."

Others Asian insurers, including Japan's Dai-ichi Life Insurance Co Ltd and Korea's Samsung Life Insurance Co Ltd trade at 0.37 times and 1.11 times 2010 forecast 2010 embedded value, respectively.

Embedded value is a measure commonly used to gauge the value of insurance companies and includes the present value of future profit from long-term insurance contracts.

AIA was already operating in mature markets in Asia with high market shares, so room for growth was less than that of peers, Bank of America Merrill Lynch said in a research report.

Also, AIA is a little slow in tapping alternative distribution channels and is unable to team up with key banks in most key markets, which may affect long-term growth prospects.

China expansion would remain one of the biggest challenges for AIA as the branch approval procedure is slow there. Reuters

Insurers bull on at KSE in the wk gone Staff Reporter KARACHI: Insurance stocks too followed the overall trend of bullish activities last week with more than 3 million shares traded together in life and non-life insurance stocks.

Pakistan Reinsurance was the volume leader with 1.6 million shares followed by Adamjee Insurance with 1.1

million shares.

Top gainers of the week include Adamjee Insurance which increased by Rs2.17 to close at Rs67.43 and IGI Insurance was up by Rs1.94 to close at Rs73.94 while EFU General Insurance fell

by Rs1.2 to close at Rs36.14 and Silver Star Insurance was down by Rs0.64 to close at Rs6.54 to be the major losers of the week.

Danske names insurance arm boss as new CFO COPENHAGEN: Denmark's biggest financial group Danske Bank said on Friday it appointed Henrik Ramlau-Hansen its new chief financial officer from Jan. 1, 2011.

Ramlau-Hansen, age 54, succeeds Tonny Thierry Andersen, who has been appointed head of the bank's Danish operations.

The new CFO has been managing director of the bank's insurance arm, Danica Pension, since 2000, Danske

Bank said in a statement. Reuters

FDIC to propose rules on financial firm breakups WASHINGTON: A top U.S. banking regulator is expected to propose rules as soon as Friday that set out how creditors will be treated under the government's new authority to dismantle large financial firms that run into trouble.

The Federal Deposit Insurance Corp's proposed rule will make clear that all creditors of big, non-bank financial companies should expect losses in a failure, according to a source familiar with the rule.

It is also expected to say that, in some cases, certain shortterm creditors could expect to get additional payments, the source said.

The FDIC's work on the rule has caused concern among other regulators starting to implement the Wall Street reform law enacted in July in the wake of the 2007-2009 financial crisis that set off the worst U.S. downturn since the 1930s.

Banking and financial firms are closely watching how the FDIC will treat creditors under its new liquidation power.

Treasury Department officials are concerned the rule could give incentives to some creditors to pull out of financial firms when they hit hard times -- creating a "run" -- if they believe the FDIC will hit them harder than others during a liquidation, the Wall Street Journal reported.

The "resolution authority" was a main plank in the reform law and is designed to avoid massive government bailouts such as the one for giant insurer AIG and destructive bankruptcies like the one of investment bank Lehman Brothers.

The ad hoc nature of dealing with financial giants during the height of the crisis fueled the panic that almost froze global credit markets.

FDIC Chairman Sheila Bair said last week that how creditors are treated under the new resolution authority would closely match how they are treated under bankruptcy proceedings.

"The authority to differentiate among creditors will be used rarely and only where such additional payments are essential to the implementation of the receivership or any bridge financial company," she said.

The reform law, the DoddFrank Act, allows the FDIC to move certain parts of failing institutions' business into a separate entity so that they can be sold at a later date.-Reuters

Regulator files plan for seized Ambac policies NEW YORK: The Wisconsin regulator for Ambac Financial Group on Friday filed a plan to wind down the more than $50 billion remaining of insurance policies related to securities that it seized in March.

Under the plan, holders of allowed claims will receive 25 percent of their claims in cash and another 75 percent in notes that pay interest of 5.1 percent and mature June 7, 2020, U.S. bond insurer Ambac said in a statement.

The Wisconsin Office of the Commissioner of Insurance, which regulates the insurer, in March placed $67 billion of what it said were Ambac's worst assets into a separate account, saying the seizure would help protect investors.

-Reuters

Sailing boats gather at the start of the Barcolana regatta in front of Trieste harbour

9

Monday, October 11, 2010

Mourinho wants Zidane to assist him PARIS: Former France great Zinedine Zidane should be closer to the pitch at Real Madrid, coach Jose Mourinho said on Sunday.

Zidane, the three-times world player of the year who retired after being sent off in the 2006 World Cup final, is a special advisor to Real president Florentino Perez.

"I would like to have him more with me and less with the president," Mourinho, who joined Real during the close season, told French TV channel TF1.

Zidane, however, has repeatedly said he does not want to become a manager.

"I don't think he wants to become a coach but I would still like to have him with me," said Portuguese Mourinho.Reuters

Vettel leads Red Bull 1-2 in Japan SUZUKA: Sebastian Vettel cruised to Japanese Grand Prix victory on Sunday in a Red Bull one-two with Mark Webber, who stretched his Formula One championship lead to 14 points with three races remaining.

The German led from the pole he had secured only a few hours earlier and triumphed comfortably, despite taking the chequered flag just 0.9 seconds ahead of the Australian, for the second year in a row.

"I'm really, really happy and it's about time," said Vettel, after spraying the winner's champagne at Red Bull designer Adrian Newey, of his first win since Valencia in June.

Ferrari's Fernando Alonso, winner of the two previous races, finished third without ever looking like troubling the leading pair.

McLaren's world champion Jenson Button, one of five title contenders, gambled by starting on harder tyres than the others but it failed to pay off and he finished fourth.

Team mate Lewis Hamilton was fifth in a race that dealt a heavy blow to their chances.

Webber now has 220 points to 206 for Alonso and Vettel, with the Spanish double world champion having won four races to the German's three.

"It is the first time I have won a grand prix for the second time, so I think ultimately you have to fall in love with this track," said Vettel when it was pointed out that only two others had ever won in successive years at Suzuka.

Both of them, Mika Hakkinen and Michael Schumacher, went on to win the title.-Reuters

Games still miss crowds

Ticket fraud reported at CWG

NEW DELHI: Spectators sit in the near-empty stands just before the start of the women’s field hockey group match between Australia and Scotland at the CWG.-Reuters

Wrestling golds for Pak after 40 years NEW DELHI: Pakistan won two gold medal in Commonwealth Games here in New Delhi as national wrestler Mohammad Inam bagged his gold medal after defeating his Indian opponent Anuj Kumar in 84kg category wrestling final.

Earlier Azhar Hussain won his country's first Commonwealth Games wrestling gold for 40 years on Sunday, beating Ebikewenimo Welson of Nigeria.

Both the wrestlers gave an impressive performance of clever footwork and brute strength to take down their opponents out by a fall in

their respective matches.

"We don't have the proper Greco-Roman coaches, but still we went for it and for the country's sake we got the silver in the Greco-Roman and now gold in the freestyle catergory as well," Pakistan's head freestyle coach MH Omar said.

Pakistan had not taken a Games wrestling title since they won four golds in Edinburgh 1970. "Like Sushil Kumar is for India, now the same Azhar Hussain is for Pakistan -- a champion," Omar said.

Hussain had earlier disappointed the partisan crowd by

beating India's Anil Kumar in a tense quarterfinal.

Kumar gave the loyal home support something to cheer about when he took the bronze, beating Craig Pilling of Wales 3-0.

He said: "Bronze is good but I wanted gold. So I'm not at all happy and satisfied. I prepared for gold at these Games for at least four or five years.

"Last night I didn't get adequate sleep. That's why I was tired and couldn't perform 100 per cent. I wasn't feeling very well. I had some stomach problems. I felt like throwing up all the time."-APP

Winds of change blowing for France PARIS: Four months after becoming a laughing stock at the World Cup, France have sprung back to life in their Euro 2012 qualifying campaign.

Les Bleus, who made an embarrassing early exit in South Africa after Nicolas Anelka was kicked out of the squad for insulting coach Raymond Domenech, top their qualifying Group D after a 2-0 home win over Romania.

"Were are creating something," new coach Laurent Blanc told reporters after France's first win at the Stade de France in almost a year.

"We need to re-invest this energy because there will be difficult periods. But for the moment there's a lot of pleasure."

Although they struggled in the first half against Romania, France were loudly cheered by a full-capacity crowd and

Leading Test Runscorers

broke the deadlock in the final 10 minutes thanks to their substitutes.

Captain Alou Diarra set up Loic Remy for the opener a few minutes after the Marseille striker replaced Mathieu Valbuena.

Substitute Dimitri Payet raced into the box to set up substitute Yoann Gourcuff for the second goal on a springlike night in Paris.

"There is a deep change," winger Florent Malouda said.

Diarra, impressive as a holding midfielder, paid tribute to Blanc.

"Yes, there is a Laurent Blanc effect. There is a young squad, everybody is involved," he told reporters.

Arsenal midfielder Samir Nasri, overlooked by Domenech for the World Cup, was influential in a central playmaking role.

"It's a position I like, I started

my career as a central midfielder. Although I have been on the right flank at Arsenal, playing in a central position is what suits me best," he said.

Under Domenech the French players would easily give up when facing sides camped deep in their own half, but they did not do so against Romania.

"We were patient and it paid off," Diarra said.

France, 27th in the world rankings, recorded two wins in a row for the first time since beating Austria and Ireland late last year.

"We must continue to win and it will ease the pressure on the team," Diarra said.

"We want France to be back among the top teams. We must not rest on our laurels and continue to win. We have to get used to victory."

France next play Luxembourg in Metz on Tuesday.-Reuters

NEW DELHI: Commonwealth Games officials said Sunday a volunteer had been reported for ticket fraud and that they were still fixing the ticket system, halfway through an event where availability of tickets has been a major problem.

Indian media have reported bundles of valid Games tickets found in trash bins and the sale of complimentary passes, while fans have been turned away from officially sold-out venues that have hosted events before half-empty stands.

Games organizing committee head Suresh Kalmadi said a volunteer had been reported to police for trying to sell tickets fraudulently.

"There is no question of condoning such acts. We won't encourage such things," he

told reporters, refuting reports that a Games official was involved in ticketing fraud.

He said "10 percent" more tickets were being printed to be given away free.

The ticketing issue is just the latest in a string of problems to hit the $6 billion Games, which India had hoped would display its ability to run a world class event but instead has increasingly become an embarrassment to the nation.

Athletes, team coaches and spectators have complained about woeful attendances and erratic security measures at a Games where events, including some boasting Indian gold medal-winners, have played before scant crowds.

Saturday, the Commonwealth Games

Federation (CGF) had asked the Delhi organizers to investigate the ticket system.

But Games ticket chief Monica Jolly said it was possible that most of the empty seats were those given to corporate ticket-holders and sponsors who did not turn up.

"The crowds are there in the other sections of the stadia," she said.

While swimming, wrestling, boxing and tennis have seen good crowds, the stands have mostly been empty for archery, table tennis and shooting.

Security concerns in a city with a record of militant attacks have not helped the cause. The route of Sunday's road cycling event was subject to a complete security lockdown with no spectators.Reuters

Gul ties India crushes Pak the knot PESHAWAR: Umar Gul, Pakistan's hard throwing and most effective bowlers when it comes to shorter versions of cricket joined in holy matrimony with a lady doctor from the valley of Swat in a marriage arranged by his parents on Sunday.

Though a star and having thousands of opportunities and countless females ready to be his life partner, he chooses to go with the choice of his parents. Umar said that he was satisfied with the way things were and did not regret not having to choose his bride for himself.

Umar Gul, who is also a world record holder as he grabbed 5 wickets for just 6 runs in Twenty20, said marriage was commitment and a part of Islamic way of life and that it was better to have all the joys of life at home rather than running around for temporary fun.

Gul had played only nine first-class matches when called up to the Pakistan side after Pakistan's disappointing performance in the 2003 World Cup. Born in April 1984 in Peshawar, Umar Gul made his Test debut against Bangladesh in 2003 in Karachi while ODI debut against Zimbabwe at Sharjah in 2003.

His body language showed his excitement at the prospect of beginning a new life. His bride lives in Dubai as her Father Naqshband is an Engineer and settled in the gulf state. She just passed her MBBS from Ayub Medical College Abbottabad.-APP

7-4 in hockey

NEW DELHI: India booked a semi-final with England in men's hockey after a 7-4 victory over rivals Pakistan before a capacity 19,000 crowd at the Dyan Chand stadium.

As expected it was fast and furious but India were soon in control and 4-0 ahead with barely 20 minutes played.

A penalty stroke gave Pakistan hope and a closerange deflection added a second to make it 4-2 at half-time.

Pakistan started brightly after the break but two goals in quick succession gave India a decisive advantage.

After the sparse crowds for many of the events during the Games, the meeting of the old

adversaries was the complete opposite, with thousands of fans unable to gain tickets.

Pakistan, who beat Scotland and Malaysia before narrowly losing 1-0 to Australia, could have progressed with a draw, but in a cauldron of noise Sandeep Singh put India two up with two penalty corners inside the opening six minutes.

He was also the architect for India's third as a driven pass across goal was smartly touched in by Shivendra Singh.

And when another penalty corner attempt from Sandeep was not properly cleared, Saravanjit Singh was on hand to slide in the fourth from close range.-Agencies

Marri starts women Karate tourney KARACHI: Sindh Minister for Tourism Shazia Marri has said that our women are having capabilities to perform in every field of life and stressed upon the parents to provide maximum possible opportunities to their daughters so that they can serve their nation and earn name for country.

This she said while addressing as chief guest to 6th National Women Karate Championship, at Women Sports Complex, here today.

The nine teams of Karate girls belonging to all five provinces, Pak Army, Railway, PIA etc are taking part in this championship.

Marri said that the Karate is not a simple game but it is an art of self defense which provides great level of confidence to the female folks and also gives them courage to face social evils. She said that our girls are full with potential, only they need confidence of parents, guidance of teachers and opportunities from state to move forward. She paid salute to those parents who sent their daughters from all over the country, to take part in this fight and urged upon every parent to encourage their daughters in each and every filed, so that they can contribute for their nation and country.-APP

North, Tendulkar illuminate Bangalore Test

A list of the leading runscorers in test match cricket Master-Blaster completes 14,000 test runs after India's Sachin Tendulkar became the first player to BANGALORE: India's Tendulkar remained unbeat- occasional aggression, slogpass 14,000 runs on the second day of the second test Sachin Tendulkar passed en on 44 with opener Murali sweeping Pragyan Ojha for the another major milestone but a Vijay (42) at the other end first six of the innings before against Australia on Sunday: Player 1. Sachin Tendulkar 2. Ricky Ponting 3. Brian Lara 4. Rahul Dravid 5. Allan Border 6. Jacques Kallis 7. Steve Waugh 8. Sunil Gavaskar 9. Mahela Jayawardene 10. Shiv Chanderpaul

Country (India) (Australia) (West Indies) (India (Australia) (S Africa) (Australia) (India) (Sri Lanka) (West Indies)

Span Runs 1989 14,017 199512,178 1990-2006 11,953 199611,581 1978-1994 11,174 199511,126 1985-2004 10,927 1971-1987 10,122 19979,408 19948,969 Source:cricinfo

dogged century from Australian Marcus North put the touring side in control of the second test on Sunday.

North's career-best 128 was the cornerstone of the Australian first innings which folded for 478 at tea on day two, but not before their lower half had added 193 runs to their overnight score of 285 for five wickets.

In reply, India made a feeble start, losing the explosive Virender Sehwag (30) and bailout specialist Rahul Dravid (one) in quick succession.

with India still trailing Australia by 350 runs.

Playing his 171st test, Tendulkar became the first batsman to amass 14,000 test runs in the 27th over of the Indian innings, hitting offspinner Nathan Hauritz for a boundary.

Earlier, North's 149-run sixth wicket stand with fellow overnight batsman Tim Paine (59) defied the Indian bowlers in the morning session and took the visitors past the 400run mark.

North mixed caution with

retreating into his defensive shell.

Paine's was a more eventful knock in which he was caught behind off a Shanthakumaran Sreesanth no-ball and was dropped by Suresh Raina off Ojha before the left-arm spinner returned to settle the score.

North completed his fifth test century in the next over and eventually fell to Harbhajan Singh after a resolute 240-ball knock with 17 boundaries and a six in it.

Australia trail the series 1-0.Reuters

BANGALORE: India's Tendulkar plays a shot to score a record of 14,000 test runs as Australia's Paine looks on during their second test cricket match.-Reuters

10

Analysis & Feature

Monday, October 11, 2010

PEACE TALKS ON THE ROPES AS ABBAS APPEALS TO ARABS l Five-week-old peace talks in intensive care l Arab League will not say talks are dead

M

iddle East peace talks launched in Washington just five weeks ago with a roll of drums have wasted no time getting into a classic bind.

Their survival is now in the balance. It depends on Israeli Prime Minister Benjamin Netanyahu or on Palestinian President Mahmoud Abbas, depending on one's point of view.

One thing is sure: each is primed to blame the other if the talks crash. If they do, it would probably be a long time before future leaders had another go, and U.S. President Barack Obama might wish he had never gotten involved.

Abbas says he wants to go on negotiating with Netanyahu but cannot unless the Israeli leader extends a moratorium on building new homes for Israeli settlers in the West Bank.

Netanyahu says the talks are off to a positive start and it would be a tragedy if the Palestinian leader walks away over an issue Israel regards as irrelevant to the outcome, since a final agreement will determine which settlements Israel keeps.

On Friday, the Arab League got involved at the request of Abbas, not so much to decide for him what to do next as to back whatever he decides.

The meeting in Libya will "formulate the beginning of alternatives within the framework that the negotiations are not bearing fruit" said Arab League SecretaryGeneral Amr Moussa, giving

no indication of what the alternatives might be.

"The position of the Israelis is very, very negative," he said. "They are not cooperating in the negotiations."

NOT DEAD YET Barring a U-turn, it seems clear that Abbas will not retreat from the position set out by the executive of the Palestine Liberation Organisation which he heads: no resumption of peace talks until Israel halts settlement building.

Abbas spokesman Nabil Abu Rdainah on Thursday repeated that "resuming negotiations requires a full freeze of settlement activities", and that "Israel alone is to be blamed for the obstruction of the political process."

But no one is yet ready to declare the talks dead.

Egypt's President Hosni Mubarak, one of the central players, said earlier this week that Netanyahu "called me twice trying to find an exit from the current dilemma".

"I said to him that resuming building the settlements is hindering talks and is wrecking the peace process ... and I look forward to positive and responsible positions from Israel in saving the peace talks," Mubarak tolds MENA news agency.

NO SURPRISES Abbas was due to brief 16 foreign ministers of the Arab League's peace process committee, which on July 29 gave him the green light to restart direct talks, after a 20 month hiatus in peace negotiations with Israel following

the Gaza war.

The committee was expected to back Abbas in a refusal to return to talks until Israel agrees to stop settlement building.

On Saturday, Abbas will give a speech to Arab leaders which may reveal how he sees events unfolding if there is no compromise and

what the "alternatives" might be.

Mubarak has warned "about an escalation in violence and terrorism in the region and throughout the world if talks between Palestinians and Israel collapsed."

But in general there has been little speculation in the

media about that eventuality, perhaps reflecting a hope that something will come up to save the talks.

There are a few straws in the wind.

The biggest risk facing Netanyahu were he of a mind to meet Abbas's demand and extend the moratorium on settlement

building is the collapse of his coalition with ultranationalist and rightwing religious parties.

On Wednesday, Netanyahu announced he would back a loyalty oath for would-be Israeli citizens, requiring them to pledge allegiance to "the nation-state of the Jewish people", rather than

simply "the state of Israel" as in current law.

On Thursday, Eyal Gabai, chief of the Prime Minister's Office, denied that the move was "payment" to key coalition partner Avigdor Lieberman ahead of a renewed settlement building freeze of 60 days to keep peace talks alive. -Reuers

Little hope for struggling Democrats in jobs report A nother disappointing U.S. jobs report on Friday would make it even harder for President Barack Obama to convince Americans that Democrats deserve to keep control of Congress in next month's elections.

Private economists predict the report -- the last before the Nov. 2 midterm elections -will show the unemployment rate ticked up to 9.7 percent in September.

Despite some recent good news, including an unexpected drop in jobless claims last week, the economy is not strengthening enough to generate sufficient job growth. It could be too late for the Democrats to prevent big Republican wins next month.

"It takes a number of months of good news to begin to

reshape the public's understanding of what the economic situation really is," William Galston of the Brookings Institution said.

"Setting aside the fact that there's no particular reason to expect dramatically good news ... I really don't think it would make that much of a difference this week," he said.

With U.S. unemployment twice as high as before the start of the global financial crisis in August 2007, voters are deeply unhappy about the economy and skeptical about whether Obama's massive spending programs have made a difference, while adding to the budget deficit.

Polls show that they will likely respond by throwing many of Obama's fellow Democrats out of office.

Voters see high unemploy-

ment rates as a sign the economy is broken, rather than as part of the natural economic cycle, public opinion soundings like the Reuters Ipsos poll show. Even Obama acknowledged the difficulty at a Democratic party fundraiser in New Jersey on Wednesday.

"When the unemployment rate is 9.5-9.6 percent, that gives an enormous advantage to whoever is not in power because they can simply point at the status quo, regardless of causation, and say 'you know what -- it's the folks who are in power who are at fault.' So that gives sort of a natural momentum behind their arguments," he said.

Democrats have tried to make the point that the economy would have been far worse without Obama's $814 billion stimulus plan, but polls show

the package is unpopular with much of the public and has fallen short of expectations.

Many Americans prefer cutting the deficit to increasing government spending as a way to improve the economy, sentiments that square with Republican rhetoric rather than the views of the economists Democrats cite in support of stimulus.

NO BIG JOBS RELIEF IN SIGHT Only a sharp reduction in the jobless rate, perhaps to 9.0 percent or even lower, would give the Democrats a boost but such a figure is nowhere in sight.

"If it drops below nine, that might have some psychological effect and the Democrats might be able to make a claim that their spending, stimulus, bailouts and all those other parts of their agenda have

worked," said Terry Madonna, a public affairs professor at Franklin & Marshall College in Pennsylvania.

Far from dropping, the jobless number is expected to inch up to 9.7 percent for September from 9.6 percent in August, according to economists polled by Reuters.

Republicans promise to slash government spending and overturn Obama's healthcare reform if they win the House of Representatives.

The Republicans could well pick up the 39 seats they would need to claim a 218-seat majority in the House. And they are forecast to gain in the Senate, although they would have to sweep nearly every competitive race -- which is not expected -- to seize the majority of the Senate's 100 seats. Republicans are also

projected to do well in races for state governor. Some recent signs of hope for Obama's party are not expected to be enough to prevent Republican gains in a year when Democrats only narrowly lead where voters typically favor the party heavily, and are struggling in swing states -such as Pennsylvania and Florida -- that went for Obama in 2008. "If you look around the country, it looks like in a few states, heavily Democratic states, they're doing better than they were. In the New York governor's race, in the Connecticut senate race, in the California races, in Washington with (incumbent Senator) Patty Murray, they seem to be doing a little better than they were a month ago," Madonna said.

However, he said, "There's

not a lot of evidence in the pivotal states that aren't as heavily Democratic." A few Democrats have gained enough in recent polls to generate a flicker of hope for the party that Republicans might not secure a majority in the House.

Surveys have also show some erosion in the Republicans' big advantage in voter enthusiasm, as Obama and other Democrats begin to hit the campaign trail hard and with a negative message saying Republican economic policies favor the richest Americans and corporations over the middle class.

Some core Democrats who had not been involved in the mid-terms have become active.

The Democratic National Committee raised $16 million in September, its biggest month since 2002 -Reuters

Israel keeps door open to new settlement freeze I srael is not closing the door on a further freeze of new construction in West Bank settlements after the Palestinians, backed by Arab powers, gave Washington a one-month window to save peace talks from collapse.

Much could depend on whether the United States opts to sweeten incentives to Israel to agree to a proposed 60-day partial building moratorium, Israeli political sources said on Sunday.

Prime Minister Benjamin Netanyahu has resisted international calls to renew the freeze, which expired on Sept. 26, and the Palestinians say settlement building, on land they want for a state, must stop for now-suspended

negotiations to resume.

"This month will be fateful," Israeli Welfare Minister Isaac Herzog told reporters after Arab League foreign ministers, meeting in Libya, endorsed the Palestinian demand but gave the United States a one-month reprieve to rescue the peace process.

While the international spotlight was on the Arab forum, one of Netanyahu's confidants, Finance Minister Yuval Steinitz, was quietly meeting Dennis Ross, a senior White House adviser on the Middle East, in Washington.

The message Steinitz conveyed, the political sources said, was that a further freeze in settlements in the occupied West Bank would be

very difficult -- but not impossible.

There has been little public sign of U.S. pressure on Netanyahu to bend, with President Barack Obama possibly wary of alienating pro-Israeli voters in the Nov. 2 mid-term election in which his Democratic party is expected to suffer steep losses.

Netanyahu, a senior Israeli official said last week, has already rejected a U.S. package of incentives, including security guarantees, that Washington hoped could help him overcome strong cabinet opposition to a new moratorium.

The proposals included U.S. backing for Netanyahu's demand for an Israeli mili-

tary presence along the Jordan river, the likely eastern border of a future Palestinian state.

But Israeli leaders balked at what the political sources said was the package's vague timeframe for the troop deployment, which Palestinians oppose.

It spoke only of a prolonged military presence, while Israel wants the United States to stipulate that Israeli soldiers will remain on the frontier for 30 to 40 years, the sources said.

SETTLEMENT SUPPORT For some cabinet members, the sources added, even the mention of a Jordan River border line for a Palestinian state was problematic, fear-

ing it would be interpreted as Israeli agreement to relinquish settlements in the adjacent Jordan Valley, part of the West Bank.

Netanyahu's coalition is dominated by pro-settler parties and the United States has acknowledged the political risks he faces in pressing ahead with talks with the Palestinians, who fear settlements will deny them a viable state.

What appeared to be trial balloons for U.S. incentives Netanyahu might be able to sell in the cabinet have already been floated in the Israeli media.

They include Obama's backing for a 2004 letter from President George W. Bush to Israeli Prime

Minister Ariel Sharon suggesting that Israel could keep some settlements in a peace deal and the release of Jonathan Pollard, an American who pleaded guilty to spying for Israel and is serving a life term in a U.S. jail.

Contacts with the United States on the settlement issue are continuing, the sources said, with a proposed Oct. 21 Paris summit between Netanyahu and Palestinian President Mahmoud Abbas a possible opportunity to get peace talks back on track.

Israel also will be examining closely the results of the U.S. election to gauge their impact on Obama's presidency.

While the future of the

peace talks remains uncertain, Israeli commentators have pointed to Netanyahu's backing of controversial citizenship legislation as a possible political tradeoff with far-right Foreign Minister Avigdor Lieberman to win his support for a settlement freeze.

The proposal promoted by Lieberman's Yisrael Beitenu party, Netanyahu's biggest coalition partner, was brought for cabinet approval on Sunday. It requires candidates for Israeli citizenship through naturalisation to pledge loyalty to Israel as a "Jewish and democratic state".

Leaders of Israel's Arab minority say the legislation is racist. -Reuters

www.asharys.net

For Subscription

Manager Circulation Ahmad Omer

1.Classic News Agency Abdul Mutalib Ph: 0333 -230 07 66 2. E-mail at subscribe@thefinancialdaily.com, 3.SMS us at 0322-260 2 838 4. Contact Phone: 35 31 18 93 - 6

Italian Kitchens Karachi

Lahore

tel: 92(21)5860794-5

tel: 92(42)5694061-2

12

RIAZ NEWS AGENCY Cell # 0333-5373137

Monday, October 11, 2010

SHAKIL NEWS AGENCY Cell # 0333-4400472

UK cops murder

Bench to decide about further adjournment

Court acquits two Iraqis

Fed again aims to have NRO hearing put off

BAGHDAD: An Iraqi court Sunday cleared two Iraqis accused of killing six British soldiers who were attacked by a mob during a protest in southern Iraq in 2003, saying there was not enough evidence to convict the men.

Hamza Hutayir Mohammed, 33, and Mousa Ismael Haider, 39, had been charged in the deaths of six Royal Military Police soldiers in the town of Majjar, where residents had stormed a police station during a protest against intrusive weapons searches in their homes.

"We didn't find enough evidence," the judge, Baligh Hamdi, said after hearing from witnesses and dismissing the charges. "Our ruling was built on what we found from the evidence."

Residents of the town said troops provoked the violence by conducting weapons searches in violation of a deal with local leaders.

A 2006 inquest in Britain heard that the soldiers, members of a unit known as the "Red Caps," died after being beaten and repeatedly shot at close range following the attack on the police station.

The Iraqi court's ruling can be appealed.

"We know that the families of the victims will be very disappointed and our thoughts remain with them, but we have no choice but to respect the decision of the Iraqi judges," the British Ministry of Defense said in a statement.

"They will have weighed up the credibility and reliability of the evidence before reaching their verdict. However, this is not the end. Seven further arrest warrants remain outstanding and are being actively pursued by the Iraqi authorities." -Reuters

India NBFCs pitch for bank licences Monitoring Desk KARACHI: Non-Banking Finance Companies (NBFCs) Thursday pleaded their case for banking licences in a meeting organised by the Reserve Bank of India and stressed that they were better placed than big industrial houses to run banks.

"NBFCs stand a better chance than big industrial houses to be converted into banks because we have a financial track record and we are already doing business in the rural and semi-urban areas, which is exactly what RBI wants," said Mahesh Thakkar, Director General, Finance Industry Development Council, which represents the NBFC sector, after attending the meeting.

NBFCs are financial institutions that provide banking services without meeting the legal definition of a bank.

RBI met representatives of Confederation of Indian Industry, Finance Industry Development Council and Indian Banks' Association See # 5 Page 11

ISLAMABAD: The decision for further adjournment of review petition for NRO (National Reconciliation Ordinance) would be held today by a 3-member Bench of the Supreme Court chaired

by CJP, Iftikhar Muhammad Chaudhry.

Attorney General, Maulvi Anwar-ul Haq would be appearing in front of the Bench also comprising of Justice Ghulam Rabbani, and Justice Khalil-ur-Rehman Ramday, to present the record of appointment of Kamal Azfar advocate, as advisor to PM. It is pertinent to note that government had requested Supreme Court that since previous advocate over the NRO review, Kamal Azfar had been appointed as advisor to PM WASHINGTON: IMF Managing Director Dominique Strauss-Kahn attends an African bank governors meeting.-Reuters

Fund’s annual meeting ends without an amicable solution

Currency tug-of-war beats IMF big time WASHINGTON: The International Monetary Fund's annual meeting failed to ease currency battles roiling markets, pushing the dispute off to a summit next month of leaders of Group of 20 countries, with no clear resolution in sight.

Differences that threaten the outbreak of a currency war persisted after a weekend meeting of global finance ministers, who left without resolving what to do.

The meeting might have been more significant for possible solutions ruled out. Chinese central bank officials rejected calls for an international or regional currency accord, and the World Trade Organization's chief said his institution didn't want to get involved in exchange-rate fights.

They did agree, however, that the 187-nation International Monetary Fund was the organi-

zation best suited to deal with rising global currency tensions that risk overshadowing next month's summit meeting of the Group of 20 nations in South Korea.

The G-20 includes traditional economic powers such as the United States and Europe along with fast-growing economies such as China, Brazil and India.

Various nations are seeking to devalue their currencies as a way to increase exports and jobs during hard economic times. The concern is that such efforts could trigger a repeat of the trade wars that contributed to the Great Depression of the 1930s as country after country raises protectionist barriers to imported goods.

"Currency disputes can easily become trade disputes," cautioned Canadian Finance Minister Jim Flaherty.

The International Monetary

Fund ended two days of talks Saturday with a communiqué that pledged to "deepen its work" in the area of currency movements. This included giving the head of the IMF, Dominique Strauss-Kahn a mandate to operate as judge, arbiter and analyst in dealing with the main players in the currency dispute, The United States, the euro area, China and Japan.

The communiqué essentially papered-over sharp differences on currency policies between China and the United States.

French Finance Minister Christine Lagarde said that a successful resolution of the currency dispute with China would require a cooling of overheated rhetoric about currency wars.

Noting the potential for broader ramifications, Lagarde added: "In a war, there is See # 12 Page 11

Geithner cuts Obama economy takeover bid WASHINGTON: US Treasure Secretary Timothy Geithner Sunday refuted charges President Barack Obama planned to use the financial bailout of troubled US firms to increase the government's stake in the US economy.

"President Obama adopted a strategy designed to get the government out of the private sector as quickly as possible," Geithner wrote in an op-ed piece published by The Washington Post.

The comments came after the

Troubled Asset Relief Program expired last week.

TARP had at one point called for 700 billion dollars of taxpayer money to be handed over to Wall Street institutions to shore them up in the midst of the global economic crisis.

The treasure secretary said that to date, the government had recovered more than 200 billion dollars in TARP funds, as well as made 28 billion in profits.

The US government would exit insurance giant AIG and

the automotive industry "much faster than anyone predicted," he added.

"General Motors is planning an initial public offering for later this year, and AIG has announced a restructuring plan that will accelerate the timeline for repaying the government," he said.

Geithner noted that because of TARP, "the financial security of all Americans is much stronger today than it would have been without the rescue strategy that the programme made possible." -Reuters

Kyrgyz voters go to polls BISHKEK: Kyrgyz voters cast their ballots Sunday to create the first parliamentary democracy in Central Asia, in an election many hope can unite the country four months after the worst bloodshed in its modern history.

Unique among elections in ex-Soviet Central Asia, voters have no idea which party will win the majority of seats in a new parliament and select a prime minister who will attempt to knit together a country plagued by political and ethnic divisions.

"Our people do not suffer from amnesia. Our people know their history. They will rise quickly to create a parliamentary republic and protect it themselves," President Roza Otunbayeva said after casting her vote in a music school in Bishkek.

After nearly two decades of failed authoritarian rule, interim leaders want to empower a prime minister to restore stability in the former Soviet republic, where clashes between ethnic Kyrgyz and Uzbeks killed more than 400 people in June.

The United States, which operates a military air base in the country to support the war in Afghanistan, has vocally embraced the plan to create the first democracy in a region otherwise ruled by presidential strongmen.

Russia, which also has an air base in Kyrgyzstan, is an opponent of the parliamentary model, arguing it could expose the country to more violence or a power grab by Islamist militants as rival factions vie for influence.

"This is a remarkable election so far. We hope this openness and transparency will be reflected on polling day, but there is still a lot of work to be done," Morten Hoeglund, special coordinator of the OSCE's shortterm observers, told Reuters.

See # 4 Page 11

Case, he cannot appear in front of Court; hence any further court review of NRO should be adjourned till new nomination of advocate.

This petition has been filed via advocate Raja Abdul Ghafoor, and Supreme Court while agreeing over adjournment had issued notices to advocate-on-record, besides summoning the notification of appointment of Azfar Kamal's appointment as advisor to PM. The review petition over NRO was to be held on 13th Oct, even that on governmental request, for which the Court had also announced a 17-member larger Bench.

CJP would be announcing his decision regarding further adjournment for review petition of NRO. -Agencies

Benazir Smart Card, a permanent instrument

Watan Card isn’t BISP instrument, Farzana clarifies ISLAMABAD: Federal Minister and Chairperson Benazir Income Support Programme (BISP), Farzana Raja has said that it's imperative to distinguish Benazir Smart Card from 'Watan Card' as the later is only a mean to provide one-time financial assistance comprising Rs20000 to all flood victims from government of Pakistan.

According to press release, Benazir Smart Card is a permanent instrument to deliver monthly cash assistance to poor families registered with BISP, in an effective and transparent manner. She said this while talking to media representatives

here at BISP Secretariat.

Farzana Raja said that the introduction of Benazir Smart Card would redress all issues pertain to delivery of regular cash grant to beneficiaries of BISP. She added further that these smarts card have already been given to beneficiary families in four districts of the country, Sanghar, Mirpurkhas, Multan and Mianwali as a pilot project.

The experiment has been proven as a success there fore it's being extended to entire Pakistan after completion of ongoing countrywide poverty survey, she added.

See # 2 Page 11

IHK under thick nowork blanket on Hurriyat call SRINAGAR: Normal life remained paralysed for the second consecutive day in the occupied Kashmir Sunday due to the shutdown called by veteran Kashmiri Hurriyat leader, Syed Ali Gilani as part of Quit Kashmir Movement.

The occupation authorities had put stringent restrictions in place in all major towns to prevent people from holding antiIndia demonstrations.

In Srinagar, thousands of troops and policemen, armed with sophisticated weapons, were seen patrolling the deserted streets.

The administration through severe preventive measures disallowed the holding of a gathering at Mirwaiz Manzil in Rajouri Kadal area of Srinagar.

The Awami Action

Committee had planned it in connection with Prisoners Day to express solidarity with the illegally detained Kashmiris including Hurriyat leaders and activists.

The APHC Chairman, Mirwaiz Umar Farooq, who continued to remain under house arrest, in a statement said that India would never succeed in suppressing Kashmiris' aspirations through use of brute force.

Meanwhile, Indian troops in their fresh act of state terrorism martyred another youth in Bomai area of Sopore. The troops also arrested a civilian from the area.

On the other hand, a report issued by the Research Section of Kashmir Media Service on the occasion of World Mental Health Day, today, revealed See # 3 Page 11

Asia-Pacific Defense Ministers meeting in Hanoi

Asia defence talks to test Gates hard HANOI: US Defence Secretary Robert Gates faces a delicate balancing act at Asia-Pacific talks this week, working to revive military ties with China while grappling maritime security issues that have irked Beijing.

Gates, on a visit to Hanoi through early Wednesday, will attend a meeting of Asia-Pacific defense ministers and hold high-profile talks with China's General Liang Guanglie, one of three Chinese officials considered to be his counterpart.

It will be the first top-level dialogue between both nations' defense chiefs since Beijing agreed to resume military-to-

military ties that it suspended earlier this year over a potential $6.4 billion US arms package for Taiwan.

US officials, briefing reporters accompanying Gates on the flight to Hanoi, said it was too soon to say US-China military ties were fully restored.

They described Monday's talks as only a step toward establishing the kind of dialogue needed to withstand expected bouts of friction in the future.

"It's not as simple as hitting the off switch, and then coming back again nine months later and hitting the on-switch and US officials have expressed proceeding as if everything is ior US defense official said, frustration with what they see as perfectly fine and good," a sen- asking not to be named.

an on-again, off-again relationship with China's military, whose rapid buildup has raised eyebrows in Washington.

A Pentagon report released in August said Beijing was expanding its military edge over Taiwan, increasing the lethality of its short-range ballistic missiles.

Lack of communication between two militaries can be lead to potentially dangerous misunderstandings, US officials say.

"We don't think that serves the interests of either of our countries particularly well," the official said.

The official added Washington wanted to work with Beijing to create a more

"durable framework that will allow us to have the sort of continuous dialogue and continuous interactions."

Broader ties between Washington and Beijing have been tested this year over China's currency, U.S. arms sales to Taiwan, Internet policy, Tibet, U.S.-South Korean military drills and Chinese territorial claims in the South China Sea. The U.S. trade deficit with China, totaling $226.9 billion in 2009, has fueled trade disputes.

Gates' task of rebuilding ties with China comes at a sensitive moment, given concerns shared by some nations attending the meeting of the 10-member

Association of South East Asian Nations (ASEAN) plus the United States, China, Japan, South Korea, Russia, India, Australia and New Zealand.

Hosts Vietnam and others harbour renewed concern about the hardening of China's position in long-running disputes over sovereignty in the South China Sea and elsewhere, although analysts expect them to play down differences this week.

The US official declined comment on whether Gates would restate Clinton's position in Hanoi, but acknowledged that maritime security issues were on the ASEAN forum's agenda. -Reuters

www.asharys.net

For Subscription

Manager Circulation Ahmad Omer

1.Classic News Agency Abdul Mutalib Ph: 0333 -230 07 66 2. E-mail at subscribe@thefinancialdaily.com, 3.SMS us at 0322-260 2 838 4. Contact Phone: 35 31 18 93 - 6

Italian Kitchens Karachi

Lahore

tel: 92(21)5860794-5

tel: 92(42)5694061-2

12

RIAZ NEWS AGENCY Cell # 0333-5373137

Monday, October 11, 2010

SHAKIL NEWS AGENCY Cell # 0333-4400472

UK cops murder

Bench to decide about further adjournment

Court acquits two Iraqis

Fed again aims to have NRO hearing put off

BAGHDAD: An Iraqi court Sunday cleared two Iraqis accused of killing six British soldiers who were attacked by a mob during a protest in southern Iraq in 2003, saying there was not enough evidence to convict the men.

Hamza Hutayir Mohammed, 33, and Mousa Ismael Haider, 39, had been charged in the deaths of six Royal Military Police soldiers in the town of Majjar, where residents had stormed a police station during a protest against intrusive weapons searches in their homes.

"We didn't find enough evidence," the judge, Baligh Hamdi, said after hearing from witnesses and dismissing the charges. "Our ruling was built on what we found from the evidence."

Residents of the town said troops provoked the violence by conducting weapons searches in violation of a deal with local leaders.

A 2006 inquest in Britain heard that the soldiers, members of a unit known as the "Red Caps," died after being beaten and repeatedly shot at close range following the attack on the police station.

The Iraqi court's ruling can be appealed.

"We know that the families of the victims will be very disappointed and our thoughts remain with them, but we have no choice but to respect the decision of the Iraqi judges," the British Ministry of Defense said in a statement.

"They will have weighed up the credibility and reliability of the evidence before reaching their verdict. However, this is not the end. Seven further arrest warrants remain outstanding and are being actively pursued by the Iraqi authorities." -Reuters

India NBFCs pitch for bank licences Monitoring Desk KARACHI: Non-Banking Finance Companies (NBFCs) Thursday pleaded their case for banking licences in a meeting organised by the Reserve Bank of India and stressed that they were better placed than big industrial houses to run banks.

"NBFCs stand a better chance than big industrial houses to be converted into banks because we have a financial track record and we are already doing business in the rural and semi-urban areas, which is exactly what RBI wants," said Mahesh Thakkar, Director General, Finance Industry Development Council, which represents the NBFC sector, after attending the meeting.

NBFCs are financial institutions that provide banking services without meeting the legal definition of a bank.

RBI met representatives of Confederation of Indian Industry, Finance Industry Development Council and Indian Banks' Association See # 5 Page 11

ISLAMABAD: The decision for further adjournment of review petition for NRO (National Reconciliation Ordinance) would be held today by a 3-member Bench of the Supreme Court chaired

by CJP, Iftikhar Muhammad Chaudhry.

Attorney General, Maulvi Anwar-ul Haq would be appearing in front of the Bench also comprising of Justice Ghulam Rabbani, and Justice Khalil-ur-Rehman Ramday, to present the record of appointment of Kamal Azfar advocate, as advisor to PM. It is pertinent to note that government had requested Supreme Court that since previous advocate over the NRO review, Kamal Azfar had been appointed as advisor to PM WASHINGTON: IMF Managing Director Dominique Strauss-Kahn attends an African bank governors meeting.-Reuters

Fund’s annual meeting ends without an amicable solution

Currency tug-of-war beats IMF big time WASHINGTON: The International Monetary Fund's annual meeting failed to ease currency battles roiling markets, pushing the dispute off to a summit next month of leaders of Group of 20 countries, with no clear resolution in sight.

Differences that threaten the outbreak of a currency war persisted after a weekend meeting of global finance ministers, who left without resolving what to do.

The meeting might have been more significant for possible solutions ruled out. Chinese central bank officials rejected calls for an international or regional currency accord, and the World Trade Organization's chief said his institution didn't want to get involved in exchange-rate fights.

They did agree, however, that the 187-nation International Monetary Fund was the organi-

zation best suited to deal with rising global currency tensions that risk overshadowing next month's summit meeting of the Group of 20 nations in South Korea.

The G-20 includes traditional economic powers such as the United States and Europe along with fast-growing economies such as China, Brazil and India.

Various nations are seeking to devalue their currencies as a way to increase exports and jobs during hard economic times. The concern is that such efforts could trigger a repeat of the trade wars that contributed to the Great Depression of the 1930s as country after country raises protectionist barriers to imported goods.

"Currency disputes can easily become trade disputes," cautioned Canadian Finance Minister Jim Flaherty.

The International Monetary

Fund ended two days of talks Saturday with a communiqué that pledged to "deepen its work" in the area of currency movements. This included giving the head of the IMF, Dominique Strauss-Kahn a mandate to operate as judge, arbiter and analyst in dealing with the main players in the currency dispute, The United States, the euro area, China and Japan.

The communiqué essentially papered-over sharp differences on currency policies between China and the United States.

French Finance Minister Christine Lagarde said that a successful resolution of the currency dispute with China would require a cooling of overheated rhetoric about currency wars.

Noting the potential for broader ramifications, Lagarde added: "In a war, there is See # 12 Page 11

Geithner cuts Obama economy takeover bid WASHINGTON: US Treasure Secretary Timothy Geithner Sunday refuted charges President Barack Obama planned to use the financial bailout of troubled US firms to increase the government's stake in the US economy.

"President Obama adopted a strategy designed to get the government out of the private sector as quickly as possible," Geithner wrote in an op-ed piece published by The Washington Post.

The comments came after the

Troubled Asset Relief Program expired last week.

TARP had at one point called for 700 billion dollars of taxpayer money to be handed over to Wall Street institutions to shore them up in the midst of the global economic crisis.

The treasure secretary said that to date, the government had recovered more than 200 billion dollars in TARP funds, as well as made 28 billion in profits.

The US government would exit insurance giant AIG and

the automotive industry "much faster than anyone predicted," he added.

"General Motors is planning an initial public offering for later this year, and AIG has announced a restructuring plan that will accelerate the timeline for repaying the government," he said.

Geithner noted that because of TARP, "the financial security of all Americans is much stronger today than it would have been without the rescue strategy that the programme made possible." -Reuters

Kyrgyz voters go to polls BISHKEK: Kyrgyz voters cast their ballots Sunday to create the first parliamentary democracy in Central Asia, in an election many hope can unite the country four months after the worst bloodshed in its modern history.

Unique among elections in ex-Soviet Central Asia, voters have no idea which party will win the majority of seats in a new parliament and select a prime minister who will attempt to knit together a country plagued by political and ethnic divisions.

"Our people do not suffer from amnesia. Our people know their history. They will rise quickly to create a parliamentary republic and protect it themselves," President Roza Otunbayeva said after casting her vote in a music school in Bishkek.

After nearly two decades of failed authoritarian rule, interim leaders want to empower a prime minister to restore stability in the former Soviet republic, where clashes between ethnic Kyrgyz and Uzbeks killed more than 400 people in June.

The United States, which operates a military air base in the country to support the war in Afghanistan, has vocally embraced the plan to create the first democracy in a region otherwise ruled by presidential strongmen.

Russia, which also has an air base in Kyrgyzstan, is an opponent of the parliamentary model, arguing it could expose the country to more violence or a power grab by Islamist militants as rival factions vie for influence.

"This is a remarkable election so far. We hope this openness and transparency will be reflected on polling day, but there is still a lot of work to be done," Morten Hoeglund, special coordinator of the OSCE's shortterm observers, told Reuters.

See # 4 Page 11

Case, he cannot appear in front of Court; hence any further court review of NRO should be adjourned till new nomination of advocate.

This petition has been filed via advocate Raja Abdul Ghafoor, and Supreme Court while agreeing over adjournment had issued notices to advocate-on-record, besides summoning the notification of appointment of Azfar Kamal's appointment as advisor to PM. The review petition over NRO was to be held on 13th Oct, even that on governmental request, for which the Court had also announced a 17-member larger Bench.

CJP would be announcing his decision regarding further adjournment for review petition of NRO. -Agencies

Benazir Smart Card, a permanent instrument

Watan Card isn’t BISP instrument, Farzana clarifies ISLAMABAD: Federal Minister and Chairperson Benazir Income Support Programme (BISP), Farzana Raja has said that it's imperative to distinguish Benazir Smart Card from 'Watan Card' as the later is only a mean to provide one-time financial assistance comprising Rs20000 to all flood victims from government of Pakistan.

According to press release, Benazir Smart Card is a permanent instrument to deliver monthly cash assistance to poor families registered with BISP, in an effective and transparent manner. She said this while talking to media representatives

here at BISP Secretariat.

Farzana Raja said that the introduction of Benazir Smart Card would redress all issues pertain to delivery of regular cash grant to beneficiaries of BISP. She added further that these smarts card have already been given to beneficiary families in four districts of the country, Sanghar, Mirpurkhas, Multan and Mianwali as a pilot project.

The experiment has been proven as a success there fore it's being extended to entire Pakistan after completion of ongoing countrywide poverty survey, she added.

See # 2 Page 11

IHK under thick nowork blanket on Hurriyat call SRINAGAR: Normal life remained paralysed for the second consecutive day in the occupied Kashmir Sunday due to the shutdown called by veteran Kashmiri Hurriyat leader, Syed Ali Gilani as part of Quit Kashmir Movement.

The occupation authorities had put stringent restrictions in place in all major towns to prevent people from holding antiIndia demonstrations.

In Srinagar, thousands of troops and policemen, armed with sophisticated weapons, were seen patrolling the deserted streets.

The administration through severe preventive measures disallowed the holding of a gathering at Mirwaiz Manzil in Rajouri Kadal area of Srinagar.

The Awami Action

Committee had planned it in connection with Prisoners Day to express solidarity with the illegally detained Kashmiris including Hurriyat leaders and activists.

The APHC Chairman, Mirwaiz Umar Farooq, who continued to remain under house arrest, in a statement said that India would never succeed in suppressing Kashmiris' aspirations through use of brute force.

Meanwhile, Indian troops in their fresh act of state terrorism martyred another youth in Bomai area of Sopore. The troops also arrested a civilian from the area.

On the other hand, a report issued by the Research Section of Kashmir Media Service on the occasion of World Mental Health Day, today, revealed See # 3 Page 11

Asia-Pacific Defense Ministers meeting in Hanoi

Asia defence talks to test Gates hard HANOI: US Defence Secretary Robert Gates faces a delicate balancing act at Asia-Pacific talks this week, working to revive military ties with China while grappling maritime security issues that have irked Beijing.

Gates, on a visit to Hanoi through early Wednesday, will attend a meeting of Asia-Pacific defense ministers and hold high-profile talks with China's General Liang Guanglie, one of three Chinese officials considered to be his counterpart.

It will be the first top-level dialogue between both nations' defense chiefs since Beijing agreed to resume military-to-

military ties that it suspended earlier this year over a potential $6.4 billion US arms package for Taiwan.

US officials, briefing reporters accompanying Gates on the flight to Hanoi, said it was too soon to say US-China military ties were fully restored.

They described Monday's talks as only a step toward establishing the kind of dialogue needed to withstand expected bouts of friction in the future.

"It's not as simple as hitting the off switch, and then coming back again nine months later and hitting the on-switch and US officials have expressed proceeding as if everything is ior US defense official said, frustration with what they see as perfectly fine and good," a sen- asking not to be named.

an on-again, off-again relationship with China's military, whose rapid buildup has raised eyebrows in Washington.

A Pentagon report released in August said Beijing was expanding its military edge over Taiwan, increasing the lethality of its short-range ballistic missiles.

Lack of communication between two militaries can be lead to potentially dangerous misunderstandings, US officials say.

"We don't think that serves the interests of either of our countries particularly well," the official said.

The official added Washington wanted to work with Beijing to create a more

"durable framework that will allow us to have the sort of continuous dialogue and continuous interactions."

Broader ties between Washington and Beijing have been tested this year over China's currency, U.S. arms sales to Taiwan, Internet policy, Tibet, U.S.-South Korean military drills and Chinese territorial claims in the South China Sea. The U.S. trade deficit with China, totaling $226.9 billion in 2009, has fueled trade disputes.

Gates' task of rebuilding ties with China comes at a sensitive moment, given concerns shared by some nations attending the meeting of the 10-member

Association of South East Asian Nations (ASEAN) plus the United States, China, Japan, South Korea, Russia, India, Australia and New Zealand.

Hosts Vietnam and others harbour renewed concern about the hardening of China's position in long-running disputes over sovereignty in the South China Sea and elsewhere, although analysts expect them to play down differences this week.

The US official declined comment on whether Gates would restate Clinton's position in Hanoi, but acknowledged that maritime security issues were on the ASEAN forum's agenda. -Reuters

Printed & Published by Amir Abbas Ashary at DRC Printing Press for Data Research Communication (PVT) LTD, 111-C, Jami Commercial Phase VII, DHA Karachi.