The Financial Daily-Epaper-14-02-2011

International Karachi, Monday, February 14, 2011, Rabi-ul-Awwal 10, Price Rs12 Pages 12

Nation remembers Faiz birth centenary

Egypt mily rulers dissove parliament Pak backs Afghan led peace process 10k Indian troops to leave Kashmir

See Page 12 See Page 12 See Page 12

See on Page 2

Rajiv Shah makes stop over in India

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

GDP Growth FY10E Per Capita Income FY10 Population

$17.31bn 14.55% $13.23bn $22.55bn $(9.32)bn $26mn $6.12bn $1.05bn Rs 765bn $58.41bn Rs 5497.4bn $323.6mn -4.69% 4.10% $1,051 175.15mn

USAID head bypasses Pak FO resists pressure on Raymon Davis issue

Portfolio Investment SCRA(U.S $ in million)

197.27 -3.48 0.37 3093

Yearly(Jul, 2010 up to 11-Feb-2011) Monthly(Feb, 2010 up to-11-Feb-2011) Daily (11-Feb-2011) Total Portfolio Invest (5 Jan-2011)

NCCPL

KSE Last Week: Offshorers invest $0.16mn

(U.S $ in million)

FIPI (11-Feb-2011) Local Companies (11-Feb-2011) Banks / DFI (11-Feb-2011) Mutual Funds (11-Feb-2011) NBFC (11-Feb-2011) Local Investors (11-Feb-2011) Other Organization (11-Feb-2011)

-1.08 -1.16 -2.74 1.04 0.80 1.90 1.24

Global Indices Index

Close

Change

KSE 100

11,943.34

244.13

Nikkei 225

10,605.65

12.18

Hang Seng

22,828.92

120.30

Sensex 30

17,728.61

265.57

SSE COMP.

2,827.33

9.17

FTSE 100

6,062.90

42.89

Dow Jones

12,273.26

43.97

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 2.60 110.32 17.48 148.33 2.00 42.43 1.70 36.06 10.92 37.05

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)

09-Feb-2011 09-Feb-2011 09-Feb-2011 29-Nov-2010 12-Feb-2011 12-Feb-2011 12-Feb-2011 12-Feb-2011 12-Feb-2011 12-Feb-2011 12-Feb-2011 12-Feb-2011 12-Feb-2011 12-Feb-2011 12-Feb-2011

13.53% 13.69% 13.86% 14.00% 13.35% 13.62% 13.77% 14.14% 14.26% 14.21% 14.24% 14.26% 14.61% 14.78% 14.97%

Commodities Crude Oil (brent)$/bbl 100.94 Crude Oil (WTI)$/bbl 85.58 Cotton $/lb 189.97 Gold $/ozs 1,360.40 Silver $/ozs 30.00 Malaysian Palm $ 1,299 GOLD (NCEL) PKR 37,488 KHI Cotton 40Kg PKR 12,325

Open Mkt Currency Rates Symbols

LAHORE: Woman selecting gifts for her loved-ones ahead of Valentine’s Day in Lahore. -Online

Buy (Rs)

Australian $ 84.80 Canadian $ 85.25 Danish Krone 15.48 Euro 115.23 Hong Kong $ 10.89 Japanese Yen 1.006 Saudi Riyal 22.65 Singapore $ 66.26 Swedish Korona 13.08 Swiss Franc 87.58 U.A.E Dirham 23.14 UK Pound 136.29 US $ 84.86

Sell (Rs)

85.03 85.44 15.49 115.50 10.92 1.031 22.68 66.42 13.16 87.79 23.17 136.59 85.04

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

84.92 85.61 15.40 114.75 10.86 1.017 22.58 66.02 13.06 87.04 23.06 135.65 84.77

85.11 85.80 15.43 115.01 10.89 1.019 22.64 66.17 13.09 87.25 23.11 135.95 84.96

Weather Forecast CITIES

ISLAMABAD KARACHI LAHORE FAISALABAD QUETTA RAWALPINDI

MAX-TEMP

15°C 29°C 22°C 21°C 8°C 16°C

MIN

6°C 14°C 8°C 10°C 4°C 8°C

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Foreign inflows remain modest Ghulam Raza Rajani KARACHI: Offshore investors remained caution as they net invested marginal $0.16 million in Pakistan equity market due to global market remained depressed and concerns regarding PakUS relations on Davis issue, as per National Clearing Company of Pakistan Limited (NCCPL) data.

On the other hand, KSE ended lower last week as investors preferred to offload their positions due to fears

that Moody's might downgrade Pakistan credit ratings if government fails to implement reforms to cut growing fiscal deficit.

KSE 100-Index closed down 3.8 per cent or 472.01 points at 11,943.34. Weekly average volume witnessed decreased by 18.8% to 95.44 million shares against 117.52 million shares traded week before last.

During the week, foreign investor's activity remained mixed as they See # 8 Page 11

Minister says no to any pressure

Awan vows fair Musharraf trial LAHORE: Federal Law Minister Babar Awan said on Sunday that there was no concept of victory or defeat in democracy, nor was there any room for confrontational politics, instead democracy requires reconciliation and understanding.

After nine years of dictatorship, it was necessary that all institutions understood and respected the limits of each other, Awan said.

Addressing lawyers at the Punjab Bar Council in Lahore, Awan said that

the government will ensure the implementation of a court order on former president Pervez Musharraf. He said that nobody could pressurise the government on such issues.

Awan has said that arrest warrants of Musharraf have been issued by none other than the courts.

According to media reports, while addressing the Punjab Bar Council, in Lahore, he said that some circles were pained See # 9 Page 11

Violation of Party Discipline

Upset Qureshi set to face music Firdaus ties decision with Musharraf warrant ISLAMABAD: Former foreign minister Shah Mehmood Qureshi is likely to face action from the party for violating party discipline.

Senior leaders of the ruling party said the leadership is annoyed over refusal by Shah Mehmood Qureshi to accept the Ministry of Water and Power instead of Foreign Affairs.

One senior leader said

that if Qureshi did not explain the reasons for his nonacceptance of the Water and Power Ministry to the President and Party co-Chairman Asif Ali Zardari, appropriate disciplinary action would be taken against him.

He said some party leaders have suggested to the President to summon Shah Mehmood Qureshi See # 10 Page 11

Planning Comm objects purchasing procedure

PIA pushes rules aside in buyings ISLAMABAD: The Planning Commission has raised a number of objections over the procedure adopted by the management of Pakistan International Airlines (PIA) to purchase 8 Boeing-777, worth millions of dollars for the national carrier.

According to sources of the Planning Commission, the Commission has raised a number of objections over the procedure including non-availability of the feasibility for the project even it was not carried out beside See # 11 Page 11

'Q', MQM agree on coaction against issues LAHORE: PML-Q and MQM have agreed to jointly struggle for the solution of masses' problems, country's security, solidarity and ending of inflation and poverty.

PML-Q and MQM leaders stated during the joint gathering at PML-Q House on Sunday.

Former Punjab Chief Minister Chaudhry Pervaiz Elahi and PML-Q leaders warmly welcomed MQM's 40-member delegation led by Dr Farooq Sattar on his arrival.

On this occasion, PMLQ President Chaudhry Shujaat Hussain pointed out that they decided to jointly work on national agenda, adding that they did not sign Charter of Democracy like others.

PML-Q and MQM would jointly work for the security of country, welfare of the people and eradication of poverty, Chaudhry Shujaat added.

He said that Shahbaz Sharif was talking about revolution but their revolution for the national solidarity and solution of masses' issues.

He demanded for immediately holding of Local Government elections in the country.

While addressing the gathering, Dr Farooq Sattar clarified that they have united for the See # 12 Page 11

Imran says revolution coming JHANG: Tehreek-e-Insaf Chairman Imran Khan Sunday said government is finding ways to provide immunity to Raymond Davis, whereas corruption is abutting its heights.

Addressing to a public gathering, Imran Khan said revolution in country is on the verge, which will bring change.

Announcing to instigate long march against government on 25th of next month, he said President Zardari pays zero tax. He said if President won't hold his own accountability, public will do.

"This long-march wouldn't return from Gujranwala", Imran Khan claimed. While commenting on corruption, he told Rs80 billions in PIA whereas Rs30 billions in Steel Mills was plundered. Tehreek-e-Insaf will recover this looted money and written off loans after coming into power. -Online

ISLAMBAD: In a series of shocks Americans are giving to Pakistan for Raymond Davis, head of USAID has given another unpleasant surprise by diverting his scheduled visit here to India well-placed sources told Online on Sunday.

According to the sources, chief of parties or commonly known as heads of the projects being funded or initiated by the USAID have arrived here for making presentations, briefings and updates to the USAID Administrator Rajiv Shah scheduled to visit here.

On the contrary the person awaited here has diverted his visit to India, the sources added.

Last time he had visited Pakistan in

August 2010 for a review of projects due by then, however, working on and relevant to unprecedented floods last year consumed his entire time in Pakistan.

Therefore, the sources said, projects and decisions seeking his node are still pending looking forward to his visit that has again been diverted to India.

"There was no announcement of the Pakistan visit scheduled of the USAID head," said an official spokesperson of the US Embassy in Islamabad.

Asked whether Shah was in India at present, she said, "I don't know that I'd have to check about. He could have given indication at any level that he might visit here at an appropriate time,

But I am sure that much for that there was no schedule was cancelled or diverted," she added.

Meanwhile Foreign Office has categorically resisted any external pressure over the issue of American national Raymond Davis case.

Private TV channels have quoted sources, reporting that the name of killer American responsible for killings is not included in diplomatic status, as he was in Pakistan on business visa.

Foreign Office had also asked American embassy to clarify the issue of Raymond Davis visa extension, but the American embassy had failed to See # 7 Page 11

Rahat halted at Delhi airport NEW DELHI: World renowned Pakistani singer Rahat Fateh Ali Khan has been apprehended at IGI airport New Delhi by revenue intelligence personnel Sunday. Rahat Fateh Ali Khan along with two other men was detained for carrying a huge amount of undeclared foreign currency. According to the media reports, Rahat Fateh was detained at the Airport under Foreign Currency Act. According to the Act, anyone intent to leave India may carry with him only 5,000 dollars, whereas Rahat was carrying over 100,000 dollars. Pak FO says it is in contact with Pakistani High Commission in India over the issue.

2

Monday, February 14, 2011

Fehmida meets Lankan President

Pak, Lanka vow to up ties at all levels ISLAMABAD: Speaker of the National Assembly Dr Fehmida Mirza called on President of Sri Lanka Mahinda Rajapakse at Temple Trees Sunday and exchanged views on Pakistan-Sri Lanka bilateral relations and emphasised the need for exchange of parliamentary delegation between the two countries.

She was accompanied by Mir Jan Muhammad Jamali, Deputy Chairman Senate and a parliamentary delegation comprising of Senators, MNAs and Speakers of Provincial Assemblies, says a message here.

Dr Fehmida Mirza is in Colombo along with a parliamentary delegation to participate in

the Commonwealth Parliamentary Association's 3rd Asia Region Conference.

The speaker while talking to the Sri Lankan President said that Pakistan attaches great importance to its relations with Sri Lanka which are embedded in bonds of friendship, history and culture.

She said that Pakistan wants to take Pak-Sri Lankan relationship to new heights through collaboration in diverse fields, people to people and parliamentary contacts.

She thanked for the Sri Lankan support to the government of Pakistan in turbulent times and on issues at various regional and international forums.

Sri Lankan President said that his country considers Pakistan a trusted friend and a strategic partner. He said that the initiatives taken by leadership of Sri Lanka and Pakistan would further consolidate the ties and cooperation between both the nations.

He also discussed strengthening of parliamentary contacts between Pakistan and Sri Lanka among other matters of bilateral interest.

Both the leaders talked about the ongoing CPA's 3rd Asia Region Conference in Colombo. They termed the conference a way forward to consolidate and enhance parliamentary ties between Commonwealth States in the region. -INP

2011 declared as 'textile year'

Textilers vow to end trade deficit ISLAMABAD: Chairman of All Pakistan Textile Mills Association (APTMA) Gohar Ejaz appreciating the President for declaring 2011 `textile year' to promote industry vowed to bring Pakistan's trade deficit to zero "if support and ownership be given to the industry".

"We want support, ownership, facilitation and implementation of the policies regarding the sector, we assured the government that textile sector alone has the potential to bring trade deficit to zero in a short period of time", Gogar Ejaz told APP. He said that last year the textile exports stood at $10.5 billion and during the current financial year we want to add $4 billion bringing the total exports of the sector to $14.5 billion.

The Chairman APTMA regretted that Pakistan's share in the total

exports of the world is only 1.3 percent while textile export potential is very high in the country.

"We don't want subsidy or concessions but support and ownership and facilitation from the government to achieve our goals and targets", he remarked.

It may be mentioned here that President Asif Ali Zardari on Friday called for declaring 2011 as "Textile Year" to substantially increase cotton cultivation, develop new and high yielding varieties of cotton and attract robust investment to promote textile industry in the country.

During the "textile year" the state land in the command area of new dams being built in Sindh and Balochistan be distributed free among the poor women of the area for growing cotton.

The President said this while

addressing the All Pakistan Textile Mills Association (APTMA)'s Annual Dinner here at the Aiwan-eSadr on Friday night, which was attended among others by Chairman APTMA, Ministers, Members' of Parliament, representatives of APTMA and business delegates.

The President said that the government adopted the policy of public-private partnership for rapid development, reduction in poverty and employment opportunities in the country.

The President also highlighted the importance of textile sector in the economic development of Pakistan and said that the setting up of garment cities in Karachi, Lahore and Faisalabad is recognition of the importance the government accords to the textile sector. APP

Valentine Day

Flowers sale in full bloom ISLAMABAD: The flower sellers of capital has decorated their outlets with variety of fresh and imported flowers especially red roses and are anxiously waiting for customers on Valentine Day (Monday).

The flower sellers usually stock tons of flowers specially the beautiful fragrant roses and illuminate their shops before the day.

"We are expecting a huge rush of people this Valentine Day and a boom in business. The rainy weather would prove as a blessing for us attracting more romantic souls", Ibrahim, a flower seller at Super Market said while talking to APP. The price of a single flower would raise from Rs30 to Rs100 on the day and many people don't hesitate to pay such high price to express their love.

Some of the flower sellers place order to nurseries for fresh stocks of red roses at the start of the month and some store flowers in deep freezers a week ahead to keep them fresh and avoid shortage.

On the Valentine Day, the flower sellers in the capital earn a huge amount by selling colorful bouquets and flowers as it is an opportunity to make grand sales even more than any other event like New Year and Eid occasions.

From the start of February, the shopkeepers start decorating their places with the stuff mostly red including balloons, teddy bears, cards, romantic poetry books and colorful ornaments and they keep chocolates and other items carved with the picture of heart and beautiful messages for the loved ones.

Although young lot celebrate this event enthusiastically but the celebrations of Valentine Day are not limited to any specific generation rather it is celebrated by all irrespective of age.

People exchange love greetings on the day and give each other flowers, chocolates and gifts.

A flower seller at another Flower Market in the capital said it is our biggest occasion from the business point of view. The best thing is that people who are in love, they don't argue to reduce the price and willingly pay the amount without inquiring. The Valentine's Day is celebrated with couples in love exchanging candies, flowers, or other gifts. The event has its origins in 5th Century Rome and is celebrated as a tribute to St Valentine, a Catholic bishop.

It is believed that Valentine was put in jail where he fell in love with the blind daughter of his jailer. His love for her and his great faith; managed to miraculously heal her before his death and restored her vision. -APP

Experts emphasise raising tax revenue Low tax to GDP affecting economy: ICCI ISLAMABAD: Business experts have stressed the need for enhancing tax to GDP ratio to help sustainable economic development and poverty reduction in the country.

"There is need to enhance overall productivity growth and of course tax to GDP ratio must be increased which is the lowest in the region to develop the country's economy on sound footings and enhance the income of the people," they believe.

Talking to APP, President Islamabad Chamber of Commerce and Industry, Mehfooz Elahi said that there was dire need to enhance tax to GDP ratio for the betterment of the country, particularly the business community.

He said that if the tax to

GDP was not enhanced, it would impact directly to the business community.

Talking about the overall productivity growth, the ICCI President said that Pakistan has only 0.78 percent productivity growth since two decades against 4.07 in China, 1.34 in India, 4.02 in Thailand and 1.50 in Vietnam.

However, another expert in the Federal Tax Ombudsman was of the view that enhancing the tax to GDP ratio was not only solution for economic development as there was dire need to exploit the true tax potential of the country.

"Tax collection potential of Pakistan is about Rs 4 to 5 trillion" an FTO official said adding that there was a pilferage in the taxation system and

resultantly we are only collecting one third of the tax potential.

The government envisages increase of up to 15 per cent in tax-to-GDP ratio in next couple of years by bringing about tax reforms to bring more sectors of economy into the tax net.

The tax to GDP ratio of the country stands at about 10 per cent currently which is believed to be one of the lowest in the region.

It is pertinent to mention here that the government and Pakistan Muslim League have been engaged in negotiations to form a national economic agenda to lead the country towards better future.

Reducing the fiscal deficit is one of the main tops. -APP

Coalitions welcome Cabinet reshaping ISLAMABAD: The coalition parties of the government, welcoming the new cabinet in line with the 18th amendment of the constitution, said it will led to bringing down unnecessary expenditure and enhance people trust on democratic institutions.

Talking to APP, the Awami National Party Information Secretary Senator Zahid Khan said that the government has respected the peoples' demand by reshaping the size of the cabinet.

"The reforms in the cabinet will enhance respect of democratic institutions and also a

positive impact on economy", he said.

He said that terrorism is hurdle in way of economic prosperity and all political parties should jointly fight the menace.

Parliamentary leader of Fata MNA, Munir Orakzai said the government has given priority to national interest by cutting the size of the cabinet.

He said small cabinet will save over Rs3 billion to national exchequer.

Munir Orakzai said that they have given suggestion not to increase size of the cabinet in future keeping in view expecta-

tion of people from democratic government.

Muttahida Qaumi Movement (MQM) MNA Asif Hasnain while appreciating the down sizing of the federal cabinet; said the MQM was optimistic that its other demands would also be accepted by the government.

To a question, he said that MQM would rejoin the federal cabinet, if the government fulfills its demands.

"We support democracy and believe that the government should complete its five-year term as per constitution," he added. -APP

LAHORE: Vendor displays gifts prepared in connection with Valetine’s Day in Lahore.-Online

Admirers remember Faiz birth centenary TV PROGRAMMES MONDAY Time Programmes 7:00 News 8:00 News 9:05 Subah Savere Maya ke Sath 11:00 Headlines 11:10 The Reema Show (Rpt) 12:00 News 13:10 Faisla Aap Ka (Rpt) 14:10 Crime Week (Rpt) 15:00 News 16:00 News 17:30 Samaa Metro 18:00 News 18:30 Aap Ki Baat 19:00 News 19:05 Hal Kya Hai 19:30 Crime Scene 20:03 Newsbeat 21:00 News 22:03 Tonight With Jasmeen 23:00 News 23:30 24

ISLAMABAD: A revolutionary Poet, Journalist, Faiz Ahmed Faiz birthday celebrated on Sunday in various parts of the country. He was born in (1911) Kala Kader village, Sialkot at Punjab.

People of the country rendered glorious tribute to renowned poet through reading his unforgettable verses. In his remembrance Mehfil-e-Mushaira was held in different cities.

He was the one of great poet who has given remarkable literally collections in the shape of many books such as Noskha-hai-Wafa, Naqsh-e-Faryadi, Dast-eSaba, Zindan-Nama, Dast-e-Tah-e-Sang etc.

Faiz Ahmed Faiz was the first Asian poet who was awarded with Lenin Peace Prize, by the Soviet Union in 1963. He was also nominated for the Nobel Prize shortly before his death in 1984. A poet, Wahid Bux Otho said that Lovers of Faiz poetry are present in the entire provinces of Pakistan. His chronological work will remain for the centuries, he added. Furthermore, Air University Cultural Society observed the 'Faiz Day,' here at the University Campus, organized in connection with the centennial celebration of the renowned Urdu poet, Faiz Ahmad Faiz.

The aim of observing the day was to pay homage to one of the most outstanding Urdu poet of 20th century, introduce his work amongst the younger generation and to spread his message against tyranny, injustice, parochialism and other narrow identities.

The programme, largely attended by the faculty members and students from various departments, was presided over by Amar Masood, the popular short story writer. A large number of students, both male and female, highlighted the life and work of Faiz. They were of the considered opinion that his poetry has layers and is not very easy to

understand.

All of poetry was written in a certain perspective; all of them were written for that time but are still relevant and would remain so as the societies are facing the same political, social and human rights issues

as during his days.

The students paid rich tributes to Faiz in the backdrop of recent uprising in Tunisia and Egypt, and observed that his words "Aajao Afirica" came true today. Besides speeches, a documentary on life and works of Faiz was shown and a drama on his poetry was staged. The

students also recited one of his most famous poems, "Hum Dekhenge.

In his speech, Amar Masood shared information on Faiz's personality and work in a lighter mood. He recalled that Faiz had mostly an adversarial relationship with the Pakistan governments since his arrest in the 1951 Rawalpindi conspiracy case and spent some time in jail.

In the next two decades, he spent a lot of time in exile. He further recalled that most of his works remained banned during the military rule of 1977-88. These included "Hum Dekhenge", an anthem for liberty from tyranny, with its lines "Sab Taaj Uchale Jayenge, Sab Takht Giraye Jayenge (all crowns will be tossed up, all thrones will be brought down)".

However, defying the dictator, famous singer, Iqbal Bano recited the poem in Lahore in a program attended by a 50,000-strong crowd, which took up the chant, "Hum Dekhenge."

His speech was so interesting that even the hard core engineering students appreciated and understood Faiz's message. Faiz's major works include "Naqsh-e-Faryadi", "Dast-eSaba" and "Zindan-Nama". Faiz's poetry has been translated into many languages, including English and Russian.

This was yet another successful event organized by the Cultural Society of the Air University which was appreciated in the thank you note delivered by Prof Abida Hasan.-Agencies

3 Monday, February 14, 2011

US dollar weekly outlook

Greenback destined to gain versus euro this week Euro seen pressured by widening sovereign spreads Robust economic data schedule could sway sentiment NEW YORK: The US dollar is destined to continue gaining against the euro this week as the single currency enters a period filled with obstacles, from widening peripheral sovereign bond spreads to a hefty funding schedule and an abundance of key economic data.

While the euro hit a three-week low against the dollar on Friday and breached a widely perceived pivotal level of $1.35, it ended the week nearly unchanged.

Technical analysts eyed a close below its 100-day moving average at $1.3542, for the first time since Jan. 17, which would indicate the single euro-zone currency should see further downside.

"An abundance of factors should work against the euro this week," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.

Euro-zone debt markets became increasingly unsettled in recent days as Portuguese 10-year bond yields reached record highs, sparking fresh concerns about funding costs in peripheral eurozone economies.

"Concerns about Europe's debt problems have moved back to the forefront and should cause the dollar to appreciate gradually," he said.

Uncertainty surrounding the European Central Bank's policy should also weigh on the euro.

Bundesbank chief Axel Weber, a known policy hawk, will not succeed Jean-Claude Trichet as pres-

ident of the ECB, according to reports last week, adding to doubts that euro-zone rates would rise in the near future.

"We see the euro as entering a more uncertain period ahead of the euro-zone leaders' summit in mid-March and the heavier sovereign funding schedule for Portugal and Spain in the coming months," said Vassili Serebriakov, currency strategist at Wells Fargo in New York.

The euro this week could break through the technical support level of $1.35 and trade in the mid- to lower-$1.34 range, Esiner said.

Economic data is plentiful this week and many euro-area economies will release their preliminary estimates of fourth quarter GDP growth.

Part the dollar's strength this past week could be attributed to short-covering and data indicates more upside potential.

The value of currency speculators' bets against the US dollar rose to its highest level since October, Commodity Futures Trading Commission data showed on Friday, the fourth straight weekly increase.

In the US, the economic calendar is full of important indicators with an emphasis on inflation, manufacturing activity and retail sales.

The dollar has smartly benefited from a spate of US economic data reflecting a recovery well under way and most strategists

are looking for more outperformance on the dollar.

In late afternoon New York trading, the euro was down 0.3 per cent to trade at $1.3547, after earlier hitting $1.3497 -- its lowest since Jan. 21. Key support for the euro lies at $1.3500, a point that traders cited as an options barrier, with reports of strong bids ahead of that level.

Regular sovereign debt auction activity will come to the forefront again this week, with some 17-21 billion euros worth of European government bond supply out of Italy, Germany, Spain, and France expected.

The euro briefly pared losses on Friday after Egyptian President Hosni Mubarak stepped down and handed power over to the Supreme Council of the Armed Forces.

"This is probably a beginning rather than an end to the Middle East turmoil and its consequences could cause uprisings in other Arab nations," Commonwealth's Esiner said.

The dollar's outperperformance against the yen has been stronger than the euro. The greenback, which gained versus the yen for eight straight sessions, is on track for a weekly gain of 1.5 per cent, its best performance in more than a month.

The dollar touched its highest level in a month at 83.68 yen, and was last up 0.2 per cent at 83.46 yen, boosted by the rising trend in US Treasury yields. -Reuters

Specs raise bets against USD: CFTC NEW YORK: Currency speculators' bets against the US dollar rose to the biggest level since October, data from the Commodity Futures Trading Commission showed on Friday, the fourth straight weekly increase.

The value of the dollar's net short position rose to $26.3 billion in the week ended Feb. 8, up from $24.9 billion in the prior week, according to CFTC and Reuters calculations. That was the biggest since it swelled to $30.5 billion in the week ended Oct. 5. Speculators increased bets in favor of the Australian dollar to the most since April 2010. Long euro and yen positions were trimmed slightly but remained elevated. The Reuters calculation for the aggregate US dollar position is derived from the net positions of International Monetary Market speculators in the yen, euro, British pound, Swiss franc, Canadian dollar and Australian dollar. -Reuters

Soybeans retreat; corn turns up CHICAGO: US soybean futures fell for a second day on Friday, retreating from 2-1/2year highs on fears importers could cancel purchases of US supplies in favor of soybeans from Brazil, which is harvesting a bumper crop.

Nearby soybean futures posted the day's biggest move, with front-month March down 17 cents, or 1.2 per cent, at $14.16 per bushel.

New-crop November soybeans ended down 6 cents at $13.791/2.

Wheat rallied, led by higher corn, along with news that Egypt had bought 170,000 tonnes of soft wheat, including 55,000 tonnes of US soft red winter wheat. CBOT March wheat settled up 4-1/4 cents at $8.67 a bushel.

Corn rallied from early declines, extending its 31month high above $7 a bushel this week after the US Department of Agriculture slashed its forecast of US corn stockpiles. Front-month March settled up 8 cents at $7.06-1/2, after pushing its peak price to $7.06-3/4. -Reuters

Coffee, cocoa down; sugar loses ground NEW YORK/LONDON: Soft commodity futures slipped Friday on broad-based profittaking as the market seemingly paused to catch its breath after surging strongly this week, analysts said.

Arabica coffee pulled back from near a 14-year top, US cocoa eased from a year high and raw sugar lost ground in a choppy week.

The resignation of Egyptian President Hosni Mubarak barely registered on the softs complex, even though Egypt is a large importer of sugar.

"I think it's mainly profit-taking. Nothing has fundamentally changed in all these markets," said James Cordier, senior analyst at brokers optionsellers.com in Florida.

The key May raw sugar contract on ICE Futures US lost 0.80 cent to finish at 29.39 cents per lb. London's March white sugar futures fell $11.60 to end at $773.80 per tonne.

The May cocoa contract in New York eased $2 to end at $3,371 per tonne, but London's May cocoa contract was the only winner by adding 23 pounds to end at 2,199 pounds per tonne.

New York's May arabica coffee futures fell 2.90 cents to close at $2.5495 per lb and

London's May robusta coffee contract shed $4 to end at $2,255 per tonne.

Coffee prices have rallied sharply since mid-2010, underpinned by tight supplies of high-quality washed arabica beans, attracting heavy fund buying.

Analysts do not expect the rally to reverse any time soon, as Colombia, the top producer of washed arabicas, is entering its third straight year of below-average harvest and Brazil is in an off-year in its crop cycle.

Brenda Sullivan, technical analyst at Sucden in London, said $2.88 a lb was a long-term target for arabicas.

"I think there may be potential, an opportunity to take a little bit of profit out of this market, just knowing that all longs need to be firmed up by the time first notice day takes," said Brian Booth, senior market strategist at MF Global Ltd.'s Lind-Waldock division in Chicago, said of arabica coffee.

Cocoa futures are seen staying firm as investors pondered whether presidential claimant Alassane Ouattara would extend his Jan. 23 call for a month-long export ban in Ivory Coast to further starve funds from his rival, Laurent Gbagbo. -Reuters

US cotton ends at new record as $2/lb looms NEW YORK: US cotton futures finished at their highest level ever on Friday on relentless trade and speculator buying, while the tight supply picture is expected to push prices above the unheard of level of $2 a lb next week, analysts said.

The key March cotton contract on ICE Futures US rose to $1.9455 per lb, exceeding the previous record price for cotton, which historians estimated was around $1.89 during the US Civil War between 1861 and 65.

Profit-taking later in the day cut gains a bit and March settled at $1.8997 per lb, up 2.4 per cent.

For the week, cotton climbed

13.17 per cent, the biggest weekly gain since early December.

Since the beginning of the year, cotton has climbed over 35 per cent in the second wave of a rally that began in August 2010.

"There's nothing magical about ($2 cotton), but it looks like it's going to hit it," Mike Stevens, an independent cotton analyst in Mandeville, Louisiana, said.

"There are no supplies available," said Lou Barbera, cotton analyst at brokerage VIP Commodities. He said buyers, faced with a dearth of physical cotton, were being forced to pay up to get any material.

Since the benchmark March

cotton contract could only rise the 7-cent daily limit, which would have maxed Friday's move at $1.9458, attempts to hit $2 per lb must wait for next week.

The cotton trade estimates that more than 95 per cent of the US crop of 18.32 million (480-lb) bales has been sold.

Analysts said talk of a dry spell in China, the top producer and No. 1 consumer of cotton, helped fuel the rally.

The September cotton contract on the Zhengzhou Commodity Exchange hit a record 34,390 yuan per tonne on Friday and was last done at 33,795 yuan, up 145 yuan. -Reuters

Sterling falls in week against USD LONDON: Sterling weakened against the dollar on concern this year's gains were overdone after the Bank of England left interest rates at a record lo, dimming speculation that rates may rise later in the year.

Sterling traded weaker against 13 of its 16 most-traded peers. The UK central bank kept its key rate unchanged at 0.5 per cent.

"The argument for a much stronger pound is not a good one based on current rates policy," saidSteve Barrow, the London- based head of research for Group-of-10 currencies at Standard Bank Plc. "At the moment the economy is still sufficiently vulnerable for inflation to come down. On that basis, one would tend to favor a scenario where rates only go up towards the back end of the year."

The pound lost 0.6 per cent to $1.6002 at 4:45 p.m. in London. Sterling declined 0.7 per cent last week, though it has still advanced 2.5 per cent this year. Britain's currency depreciated 0.1 per cent to 84.61 pence per euro.

The Bank of England has faced mounting pressure to raise borrowing costs for the first time since July 2007 to help curb inflation, which has exceeded its target for more than a year. Inflation accelerated to 3.7 per cent in December, equalling an April reading that was the highest since November 2008.

Former Bank of England policy maker Kate Barker said officials may be wary of increasing rates if it risks stoking gains in the pound that would undermine the economic recovery.

Governor Mervyn King has dismissed inflation risks as temporary, saying government spending cuts and slowerthan- estimated economic growth will curb price pressures. -Agencies

Copper up on Cairo dictator ouster NEW YORK/LONDON: Copper bounced from a near two-week low to end a shade higher on Friday, as broader market sentiment gradually improved after news of the resignation of Egyptian President Hosni Mubarak.

"Now that the risk of a violent transition in Egypt has abated, this gives room for the global economy to continue to expand," said Ralph Preston, futures analyst with HeritageWestFutures.com in San Diego, California.

"The markets are saying Egypt may not be as big a risk at this point." London Metal Exchange (LME) copper for three-month delivery ended $10 higher at $9,961 a tonne, up from an earlier session low at $9,838, its lowest level since Feb. 1.

As a result, the price now sits just $100 below Monday's record peak at $10,160.

COMEX March copper eased 0.75 cent to settle at $4.5360 per lb, near the upper end of its $4.4810 to $4.5795 session range, and about 10 cents below its own record peak at $4.6375.

But worries about the nearterm demand outlook in China lingered after the world's top copper consumer raised interest rates on Tuesday in an effort to rein in inflation. Underscoring copper's demand worries, Shanghai stockpiles rose nearly 10,000 tonnes to 144,197 tonnes, latest weekly data showed.

Stocks of copper in LME warehouses fell 225 tonnes to 396,725 tonnes, but a recent trend of rising stocks has raised some concerns about the demand outlook.

Stocks of aluminium fell 2,325 tonnes but were just 41,300 tonnes off a record high of 4,640,750 tonnes hit on Jan. 20, 2010. Aluminium shed $41 to end at $2,496 a tonne.

In other metals, three-month tin hit a new record at $31,800 a tonne, before ending up $275 at $31,775. -Reuters

Asian currencies

Mostly post weekly losses on growth worries BANKOK: Asian currencies dropped this previous week, led

by South Korea's won, as global funds trimmed holdings of regional shares on concern economic growth and corporate earnings will be hurt by interestrate increases.

Overseas investors pulled $3.8 billion from stock markets in South Korea, Taiwan and Thailand during the week, exchange data show. China's central bank raised interest rates for the third time in four months, joining India, Indonesia, South Korea and Thailand in having boosted borrowing costs this year to tame inflation. Vietnam devalued the dong by about 7 per cent, the most since at least 1993, to help rein in the nation's trade deficit.

"What's been driving currencies lower in Asia is a bit of a sell-off in equity markets, reflecting concerns of tightening policy and rising inflation," said Brian Jackson, a Hong Kong-

based senior strategist at Royal Bank of Canada. "People are focusing on higher interest rates making it difficult for some companies to borrow and this leads to lower equities and a weaker currency."

The won slumped 2.2 per cent to 1,128.47 per dollar and the Singapore dollar slid 0.9 per cent to S$1.2851. Malaysia's ringgit slipped 0.9 per cent to 3.0575.

Vietnam's dong slid to a record low against the US dollar after the central bank devalued the currency for the fourth time in 15 months. The dong dropped 6.6 per cent to 20,875 per dollar on Friday. The State Bank of Vietnam said that it will fix the reference rate for the currency at 20,693 versus 18,932 on Feb. 10. It also narrowed the trading band to 1 per cent on either side of the rate from 3 per cent before.

The won touched a one-month low of 1,128.70 after the Bank

of Korea reported producerprice inflation accelerated to a two-year high of 6.2 per cent in January and unexpectedly held off from raising interest rates.

The ringgit retreated from a 13-year high of 3.0290 per dollar recorded on Feb. 4 as government data showed industrial output moderated in December.

Production gained 4.2 per cent from a year earlier, compared with a revised 5.4 per cent the previous month.

Indonesia's rupiah strengthened 0.5 per cent this past week to 8,948 per dollar after the government reported the fastest economic growth in six years. Gross domestic product rose 6.9 per cent from a year earlier in the fourth quarter, the most since 2004.

Elsewhere, the Philippine peso slid 0.1 per cent to 43.815 per dollar and India's rupee lost 0.2 per cent to 45.69. Taiwan's dollar declined 0.1 per cent to NT$29.23, while China's yuan was little changed at 6.5919. -Agencies

C$ rises on Mubarak departure, trade data TORONTO: The Canadian dollar rallied against the greenback on Friday, shrugging off a drop in oil prices after Egyptian President Hosni Mubarak stepped down and handed over power to the army.

The Canadian dollar and other risk-sensitive assets rose on news of Mubarak's departure as hopes rose that the Egyptian crisis has been defused.

The currency broke through a series of US dollar support levels and climbed as high as C$0.9863, or $1.0139, in the aftermath of Mubarak's resignation. It also outperformed against other currencies.

"Ultimately the market has

managed to digest the news coming out of Egypt, and from a Canada perspective the Canadian dollar is trading even stronger, despite the downturn in crude pricing," said Jack Spitz, managing director of foreign exchange at National Bank Financial, noting that the normal correlation between the Canadian dollar and commodity prices has broken down recently.

"All things being equal, the inability of dollar/Canada to breach parity from a technical perspective has opened up a move down to test support through C$0.9915, through C$0.9900 and now through C$0.9870," he said. "So ulti-

mately the proof will be whether or not this (Canadian) currency has legs to go through the calendar bottom of C$0.9832."

Before the Mubarak news, the Canadian dollar was already on better footing after data showed Canada's trade balance unexpectedly returned to surplus in December after nine months of deficits, fueling hopes of an export recovery.

The currency closed the North American session at C$0.9868 to the US dollar, or $1.0134, up from Thursday's finish of C$0.9958 to the US dollar, or $1.0042. It was up 0.2 per cent on the week. -Reuters

US oil falls to 10-wk low as Egypt sees big change Brent premium to US crude hits record above $16/bbl NEW YORK: US oil prices fell to a 10-week low on Friday after Egyptian President Hosni Mubarak stepped down and handed over power to the army.

Mubarak's departure came after 18 days of mass protests that had raised concern about potential for supply disruptions and a spread of the turmoil to major oil producers in the region and had helped push ICE Brent crude futures above $100 a barrel for the first time since 2008.

Front-month ICE Brent crude for March delivery expired on Friday, holding on to some gains after the Mubarak departure, but Brent contracts for nearby months were lower.

Brent's premium to US crude reached a record $16.24 a barrel as US prices fell sharply on the Egyptian developments. But the spread between April contracts was only around $12 a barrel.

US crude futures for March delivery fell $1.15 to settle at $85.58 a barrel, the lowest close in 10 weeks and off 3.89 per cent on the week, the biggest weekly percentage loss since the week to Nov. 19. Expiring March ICE Brent crude rose 56 cents to settle at $101.43 a barrel, off its $102.03 intraday peak. The more actively traded April contract fell 50 cents to settle at $100.94 a barrel.

Analysts and brokers remained cautious about the implications of Egypt's political transition for the broader region, where protesters also have called for changes in Jordan and Yemen.

Money managers increased their net long crude futures positions on the New York Mercantile Exchange in the week to Tuesday, as Egypt's protests raged, according to a Commodity Futures Trading Commission report released late on Friday.

In addition to the unrest in the region, OPEC producers have been subject to calls to boost production on concerns that oil prices above $100 a barrel will stifle the global economic recovery. But, so far, OPEC officials have resisted calls for an emergency meeting to address high prices and output targets.

Monthly reports from both the International Energy Agency and OPEC this week showed higher production from the OPEC nations, but they expected global demand to keep rising.

US consumer sentiment rose to its highest level in eight months in early February, according to the Thomson Reuters/University of Michigan Surveys of Consumers and in a separate survey, the US economy and jobs market were seen growing more strongly in the first quarter than previously expected.-Reuters

Gold follows Mubarak; support seen NEW YORK: Gold retreated below $1,360 an ounce on Friday after the resignation of Egyptian President Hosni Mubarak following weeks of protest took some heat out of risk aversion.

Despite the decline, bullion posted its second consecutive weekly gain as fears that Egypt's unrest would spread across the Arab world had put a floor on gold prices, traders said.

"The geopolitical risk and the incentive to buy gold on the back of that are probably reduced," said Hayden Atkins, an analyst at Macquarie. "Tension will still be simmering, but it won't be as big a news story for people to trade off."

Spot gold fell 0.4 per cent to $1,357.95 an ounce by 1952 GMT, having earlier risen to a three-week high of $1,368.16. US gold futures for April delivery settled down $2.1 at $1,360.4.

Futures trading volume was 40

per cent below its 30-day average, in line with lower turnover during the week. Some traders said dwindling volume could signal waning investor interest in gold.

Other market watchers, however, said gold remained well supported by underlying safe-haven demand after Mubarak's resignation and the Tunisian uprising that toppled President Zine al-Abidine Ben Ali in January, starting a chain reaction across the Arab world.

Gold was weakened further after data showed stronger-than-expected US consumer sentiment, which rose to an eight-month high in early February.

Investment demand for gold remained soft, with holdings of the world's largest gold-backed exchange-traded fund, New York's SPDR Gold Trust, easing nearly a tonne on Thursday. They are down just over 55 tonnes so far this year.

In the same period of 2010, they fell

around 27 tonnes.

Premiums for gold bars were steady in Hong Kong and Singapore, with no signs of buying interest from China after the Lunar New Year celebration. There was hardly any physical buying in Asia related to unrest in Egypt, dealers said.

Silver slipped 0.8 per cent to $29.96 an ounce.

The tightest physical supplies in four years have tipped the US silver futures market into backwardation this week, making near-term prices more expensive than more distant months.

Holdings in the world's largest silver ETF, the iShares Silver Trust, rose around 18 tonnes to 10,388.45 tonnes on Thursday, their first increase since Jan. 24.

Platinum dropped 1.2 per cent to $1,802.74 an ounce, while palladium lost 1.1 per cent to $811.47. -Reuters

4 Monday, February 14, 2011

The Financial Daily International Vol 4, Issue 182

Publisher & Editor-in-Chief: Amir A. Ashary Editor: Shakil H. Jafri Executive Editor: Manzar Naqvi

Beware of Brainwashers A

boy who killed 31 army cadets probably had all the characteristics that make Pakistan's young suicide bombers so dangerous Khurram Shehzad, CFA - they are thoroughly brainwashed, Asim Abbas Ashary, CPA poor, disciplined and hard to detect.

Prof. Zakaria Sajid (KU) Akhtar M. Zaidi, FCA Police officials are running DNA Zahid Bukhari SVP HBL (retd) Dr. A. Hadi Shahid, FCA tests on what is left of the young holy Ismat Sabir warrior's legs and scalp to determine Muhammad Arif his background and age, but they susHead office pect he could be between 12 and 15.

111-C, Jami Commercial Street 11, Phase VII, DHA Karachi Pakistan, a strateTelephone: 92-21-35311893-6 Fax: 92-21-35388428 gic US ally, faces URL: www.thefinancialdaily.com ruthless and cunEmail Address: editor@thefinancialdaily.com ning Taliban miliLahore office tants determined to 24- Peshawar Block, Fortress Stadium, Lahore destabilize the govTelephone: 92-42-6675595 Fax: 92-42-6664349 ernment.

Young Email Address: editor@thefinancialdaily.com suicide bombers are one of their most chilling weapons.

"We are alarmed. We plan to beef up our security even more to avert such attacks," said Zeeshan Khan, a senior police official in Mardan, the town where the cadets were killed on Thursday.

President Asif Ali Zardari has called for declar- "If incidents like this happen -ing 2011 ‘Textile Year’ while addressing annual involving a child who is clad in a dinner of All Pakistan Textile Mills Association school uniform -- the implications are wider now. We have to look into this (APTMA). aspect."

The President highlighted the importance of Al Qaeda-linked Taliban movement, textile sector in the economic development of which remains a major threat to Pakistan and said that the setting up of garment Pakistan's security despite military offensives against it, wasted no time in cities in Karachi, Lahore and Faisalabad was claiming responsibility for the attack recognition of the importance the government on an army recruitment center. accorded to the textile sector. He also assured What makes a Pakistani child trade in his school books for a suicide vest?

APTMA members of fullest support.

Experts say it's a combination of facIn a letter sent to the President, Central tors but the common denominator is Chairman Pakistan Hosiery Manufacturers and poverty in the South Asian country.

Exporters Association, Saleem Parekh, Many can't afford to send their chilChairman Pakistan Apparel Forum, Javed dren to good schools.

So they are enrolled in extremist reli-

Honorary Advisory Board

Haseeb Khan, FCA

S. Muneer Hussain Rizvi

“

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.

That is unlikely to happen anytime soon because the government has limited resources. The stagnant economy is being kept afloat by an $11 billion International Monetary Fund (IMF) emergency loan.

The stakes are high. The United States sees nuclear-armed Pakistan as a critical ally in its global war on terror, so a growing threat from young suicide bombers is alarming for policy-makers in Washington.

Once children graduate from the seminaries, they are mentally primed to join militant groups, who give them rigorous training.

"They keep them in isolation, secluded from other people like foot soldiers.

Only three to four people are allowed to meet them," said Abdul Basit, an expert on suicide bombings at the Pak Institute for Peace Studies in Islamabad.

"They are told they are God's chosen

What makes a Pakistani child trade in his school books for a suicide vest? Experts say it's a combination of factors but the common denominator is poverty in the South Asian country.

Textiles need more than that

Bilwani and Chairman Value Added Textile Forum, Rana Mushtaq have demanded early resolution of the problems facing members. They also seek a meeting with the President to apprise him about the sector's roadmap to achieve objectives as laid down in the maiden Textile Policy.

Two-fold increase in textile exports is possible if the government opts for the policies suggested by the value added sector. The sector has termed Textile Policy launched by the government for five years revolutionary and demanded its immediate implementation. Apparel sector has also appreciated President Zardari's announcement to declare 2011 as ‘Textile Year’. Apparel sector's representatives hope declaration of 2011 ‘Textile Year’ can usher growth of textiles and clothing industry and enhance textile exports from Pakistan.

Since all the sector leaders have consensus on strengthening textiles and clothing industry and enhancing its exports it is necessary to clear certain perceptions that have often led to giving spinners the status of 'real textile industry' and manufacturers of value-added products 'ancillary units'. The fact is contrary because around the world value adding units are given the status of textiles and clothing industry.

According to Pakistani classification the valueadded sector comprises over 50,000 manufacturing units whereas APTMA represents 360 members mostly in the spinning business. Share of value added sector is over 80 per cent as compared to APTMA's share of less than 20 per cent in Pakistan's total textile exports. On top of this value added textile sector employs 18 million workers whereas spinning sector employs less than 0.3 million workers.

Providing details is in no way aimed at undermining the role of spinners but certainly to highlight the importance of value adding units to help the government make a policy decision regarding imposing quantitative restriction on the export of raw cotton, yarn and unprocessed cloth. According to the cardinal principal 'value adding sector has the preemptive right on locally produced raw materials'. Besides, buyers of cotton, yarn, and unprocessed cloth ultimately become Pakistan's competitor in the madeups’ markets around the world.

The government should also complete the work on textile cities. Making clusters will help in ensuring uninterrupted supply of electricity and gas at affordable cost. Textiles and clothing industry is a continuous process industry and any disruption in electricity and gas supply can lead to millions of rupees of losses, failure in meeting orders and above all allowing competitors to snatch Pakistan's share in global markets.

gious seminaries that first began churning out youngsters eager for jihad in the 1980s to help the Afghan mujahideen fight Soviet occupation.

They are instilled with the discipline of a soldier in the schools, known as madrassas, and guided by shrewd clerics who persuade them they are on a glorious path to heaven.

"The 12-year-old boy (suicide bomber) was probably inducted into a

madrassa for the last five to 10 years," said psychiatrist Razwan Taj, who has treated young boys militants tried to recruit.

"That means he (a cleric) has plenty of time to mold him to his way of thinking. The child sees no life outside the madrassa.

It is everything. It is the provider of food, of an education, of social security. It's the world he knows."

More and more young Pakistanis will study at those seminaries unless the government invests in the country's crumbling education system and creates more jobs.

version of Islam which allows for public beheadings and lashings for those deemed immoral. The Taliban often blow up girls' schools.

But Pakistanis understand that openly challenging their ideology can be risky. Parents who oppose recruitment of their children for jihad sometimes pay a heavy price.

"If someone does not send their child for training, jihad, then they would be reprimanded. They are forced to leave the region or their houses are bombed or one of their relatives is killed," said Basit.

"They can also bomb their homes."

After years of indoctrination, carrying out the actual suicide attack seems like the easy part. The Mardan bomber was likely pretending to be student on his way to class at a school located in the military compound.

To get a uniform, all he had to do was walk through the bustle of the main market past fish vendors, restaurants and electronics joints and purchase the outfit at a shop.

Until the government offers impoverished Pakistanis a brighter future, the cycle that leads some young people to blow themselves up won't let up.

"A lot of girls and boys tend to want to leave (madrassas) and when their families refuse to take them back or can't afford to take them back then they react in different ways," said Taj. "We are presented with odd behavior such as strange talking or they become mute.

Or they start to have histrionic fits which appear like epilepsy but are not."-Reuters

"That means he (a cleric) has plenty of time to mold him to his way of thinking.

The child sees no life outside the madrassa. It is everything. It is the provider of food, of an education, of social security. It's the world he knows." people who have been selected to this holy and sacred job of waging a holy war for the glory of the religion."

Most Pakistanis reject the Taliban's

Bahrain Boiling?

A

nti-government protests by Bahrain's marginalised Shi'ite majority on Monday are not likely to rival the Egyptian revolt, but will add to the pressure on the king to make more concessions to his people.

Gulf states are not expected to face full-scale revolts thanks to a golden bargain under which their rulers trade a share of their oil wealth for political quiescence, but Bahrain is among the most vulnerable to popular pressure.

"There's a deep sense of frustration among large segments of Bahraini society," said Toby Jones, professor of Middle Eastern studies at US-based Rutgers University.

"If there was one place in the Gulf that I was going to predict that there would be something similar (to Egypt), it would be Bahrain," he said.

Bahrain is a small oil producer with a majority Shi'ite population that has long complained of discrimination by the ruling Sunni al-Khalifa family, well before popular uprisings in Tunisia and Egypt emboldened activists across the region.

Across their island country,

Bahrainis sounded car horns and waved Egyptian flags on Friday night when news broke that Egyptian President Hosni

“

Bahrain.

Diplomats said the early concessions could blunt the scale of the protest.

put the Sunni minority's power at risk," he said.

Villages in Bahrain regularly see night-time clashes between security forces and Shi'ite youths erecting barricades and attacking police with fire bombs.

The government launched a security crackdown last August against some Shi'ite groups to stop this, but it has loosened its grip since the revolts in Egypt and Tunisia.

The trial of 25 Shi'ite men arrested in the crackdown and charged with inciting violence to topple the government has remained the main bone of contention. The trial is stalled after a series of lawyers resigned, and observers are wondering whether the king might pardon some of the detainees. Bahrain, home to the US Navy's Fifth Fleet, is one of a string of Sunni-led US allies in the region that Washington depends on to curtail the regional influence of Shi'ite Iran.

"There's a deep sense of frustration among large segments of Bahraini society," said Toby Jones, professor of Middle Eastern studies at US-based Rutgers University.

Mubarak had stepped down.

The first protests in Bahrain since the events in Egypt and Tunisia unfolded are expected to take place on Monday.

King Hamad bin Isa Al Khalifa, trying to defuse the tension, said he would give 1,000 dinars ($2,650) to each local family, and the government has indicated that it may free minors arrested under a security crackdown last year.

"I think it is no coincidence that the government has chosen this time to announce new grants to all Bahraini families," said Jane Kinninmont, analyst at the Economist Intelligence Unit, who expected Mubarak's fall to strengthen protesters in

SECTARIAN DIVIDE Non-Opec Bahrain, which unlike its Gulf Arab peers has little spare cash to throw at social problems, said last week it would spend an extra $417 million on social items, including food subsidies -- a reversal of attempts to prepare the public for cuts in subsidies.

Shadi Hamid, analyst at the Brookings Centre in Doha, said protests in Bahrain were unlikely to draw support from across sectarian lines, and this could limit the size of demonstrations in a country with just over half a million Bahrainis.

"Not everyone in Bahrain agrees that democracy is a good thing because that will

Top oil exporter Saudi Arabia, which has a sizeable Shi'ite population in its eastern provinces adjacent to Bahrain, is worried it might lose allies to counter Iran.

Bahrain's main Shi'ite opposition group, Wefaq, will play a decisive role in Monday's protests as it could quickly mobilise tens of thousands of supporters and send them into the streets.

But observers and analysts say Wefaq is a cautious group that will not join street protests on a large scale but will wait to see how many more concessions the government will make.

The group has taken part in parliamentary elections introduced as part of political reforms launched by the king in the early 2000s to draw Shi'ites into the political system and quell the large-scale street protests of the 1990s.

"Wefaq is fundamentally constrained by the position it put itself in, it's decided to work within the system, it's decided not to provoke the Sunni regime so they're stuck in that paradigm right now," Hamid said.-Reuters

Revolution & Democracy H

undreds of thousands of protesters have thronged public squares; slogans have been chanted, banners waved and security forces cowed into inaction; the reviled despot has stepped down or fled abroad.

Now what?

It's a question not just for Egyptians who toppled President Hosni Mubarak on Friday. It has confronted those behind people's revolutions that have overthrown tyrannical regimes in dozens of countries in recent decades.

The euphoria seldom lasts long. It is replaced by the challenge of building a fair and democratic society and meeting the expectations of supporters who may be motivated as much by economic hardship as by love of political freedom.

Studies show a decidedly mixed record of long-term success for popular uprisings like those that have just convulsed the Arab states of Egypt and Tunisia.

"Many transitions from authoritarian rule do not lead to freedom," said a 2005 report by Washington-based human rights group Freedom House, entitled "How Freedom is Won: From Civic Resistance to Durable Democracy."

"The opportunity for freedom after a political opening represented by the fall of an authoritarian (leader) is by itself not a guarantee of an optimal outcome for freedom in the long term."

Of 67 countries the report looked at where there had been transitions from autocratic rule over the preceding generation, 35 were "free," 23 were "partly free" and nine were "not free" at the time of publication, it said.

Factors likely to contribute to lasting democracy included a strong, cohesive civic coalition before the change, and pursuit of nonviolent tactics by the opposition, it said.

Conversely, analysts say, chances of

"That deal has plagued Serbia's democratic transition, which nevertheless has gone a long way in the right direction," said Serwer, now with the Johns Hopkins School of Advanced International Studies.

"The Egyptians are likely to face a similar problem: they have relied on the armed forces to evict Mubarak.

The question now will be whether the armed forces will permit a thorough going revolution," he added.

It's a question not just for Egyptians who toppled President Hosni Mubarak on Friday. It has confronted those behind people's revolutions that have overthrown tyrannical regimes in dozens of countries in recent decades. building a stable democracy can be damaged if the opposition cuts a deal with security forces to overthrow a ruler -- as some suspect might have happened in Egypt.

Daniel Serwer, a former US State Department official, said that in Serbia, demonstrators promised security services they would not be held accountable for past actions if they helped oust Yugoslav President Slobodan Milosevic in 2000.

DEMOCRATIC BACKGROUND Some analysts believe chances of lasting change are boosted if a country has at least some history of democracy.

This was the case with the Philippines, where dictator Ferdinand Marcos, toppled by mass unrest in 1986, had started off as elected president; and with most of the Warsaw Pact states that threw off Soviet-led communist rule in 1989 and later

joined the European Union.

SERIOUS VIOLENCE ERUPTED IN ONLY ONE, ROMANIA The exception that proves the rule among the European states of the former Soviet bloc is Belarus, a country with its own language but little history as an independent nation and long dominated by Moscow.

While the neighboring Baltic states of Latvia, Lithuania and Estonia, geographically and culturally close to Scandinavia, are held up as models of democratisation, Belarus' president since 1994, Alexander Lukashenko, has been branded by Western leaders as Europe's last dictator.

Iran had been ruled by monarchs until it ousted the last shah, Mohammad Reza Pahlavi, in 1979 in an Islamic revolution. By coincidence, the royal regime fell on Feb. 11, exactly 32 years before Mubarak was ejected in Egypt.

With violence employed by both sides in Iran, it fell into Freedom House's category of countries at risk of forfeiting their democratic gains.

Islamic moderates were soon elbowed aside by hardliners to form a theocratic state effectively led by unelected clerics.

But David Cortright of the Kroc Institute for International Peace Studies at Notre Dame, Indiana, says even Iran had democratic elections -at least until 2009, when opposition demonstrators charged that a presidential poll was rigged. -Reuters

5

Monday, February 14, 2011

Egypt stock exchange delays reopening till Wednesday

European stocks gain for 2nd week as earnings top estimates Weekly Review

Davis shoots a big hole in KSE’s chest during week

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

12,415.35 11,943.34 472.01 3.80 477.24

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

3,791.92 3,565.28 226.64 5.98 19.67

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

3,056.41 2,931.08 125.33 4.10 0.35

Nawaz Ali

Major Gainers

Symbol

Close

Change

RMPL 2,873.23 UPFL 1,340.32 WYETH 1,065.00 IDYM 300.00 ILTM 127.61

452.93 235.23 65.01 37.51 23.06

Major Losers

Symbol

Close

Change

ULEVER 4,145.50 COLG 900.00 NESTLE 3,351.10 LAKST 240.01 SHEZ 166.92

-240.15 -60.00 -54.34 -37.74 -31.13

Top 5 Volume Leaders

Symbol

Close Vol (mn)

LOTPTA NICL SSGC ANL DSFL

15.93 2.53 25.85 10.32 2.98

55.50 51.48 30.08 19.44 17.00

Active Issues Plus Minus Unchanged

159 250 8

Sector Updates FERTILISER 000 tonnes

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

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

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

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

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

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

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

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

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

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

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

NEW YORK: Traders and guests gather at the New York Stock Exchange.-Reuters

Wall Street weekly outlook

Buy that dip, baby!

NEW YORK: The new national pastimes are calling the top of the stock market, commenting on Middle Eastern affairs and -- buying dips.

Stocks have shown remarkable resilience as investors snap up any drop in prices, even in the face of what seem like considerable risks -- an overbought market and a still potentially explosive situation in the Middle East.

Confidence in the economy, strong earnings, and inflows into equities from bond funds have been enough to push indexes to new highs on an almost daily basis even if light volume and slight gains show investors are not making aggressive moves.

Robert Auer, a fund manager at SBAuer Funds in Indianapolis said that after eight months of outflows his Auer Growth Fund had started to see inflows.

"I'm wondering if this is happening at American Funds and Fidelity and everyone else," he said. "I'm having to put it to work because we typically don't hold any cash, so it is causing me to do buying."

Bond funds have seen three months of outflows, the longest streak in more than 2 years.

Over that period $23 billion has moved out of bond funds while $16 billion has flowed into equity funds, according to data from the Investment Company Institute.

A rise in market interest rates has hit bond prices recently and is helping to spur those outflows. During the week the yield on the 10-year Treasury note rose

to its highest level since April.

Rising yields have accompanied increasing optimism over the economy that will again be tested with retail sales and industrial output data during the week.

"Investors right now think the pullback is already here and they're not buying stocks - and not selling but not buying at a time of inflows is forcing the market to drift higher," said Thomas Lee, US equity strategist at JPMorgan in New York.

Volume hit its lowest levels so far this year on Tuesday with just over 7 billion shares traded on the NYSE, Amex and Nasdaq compared to last year's average of around 8.5 billion.

Lee is expecting a pullback in the March and April time frame, with the S&P 500 rising to 1,333 before falling to around 1,250, taking the market back to where it was in late December.

"You really need to start buying at the 1,270 level," he said. "You need to be selective and getting ready to buy that dip."

The 1,333 level is the double-your-money mark from the bear market intraday low of 666.79 in March 2009 and is seen as a significant level by some investors.

Even though the CBOE Volatility Index remains low, options investors are willing to pay more for protection against declines, which suggests concern about the market's direction, according to analysts at Credit Suisse.

Credit Suisse Fear

Barometer Index, a measurement of how much investors are paying for put options compared with call options, hit new highs on Thursday due to continued put buying in S&P 500 options.

"While options prices are deflating overall, S&P 500 index traders are willing to pay handsomely for protection," said Jason Goepfert who publishes SentimenTrader.com an investor sentiment website.

The Market Vectors Egypt Index exchange traded fund jumped as much as 8.7 per cent after news broke that Egypt's President Hosni Mubarak would give in to demonstrators demands and step down after 30 years in power.

The ETF tracks underlying shares in Egyptian companies and is still 9 per cent under its pre-crisis high.

Markets gave a cautious welcome to Mubarak's departure. Stocks rose and NYMEX crude oil futures fell to near $85 dollars a barrel, 8 per cent below their crisis high over $92.

For the week the S&P 500 and the Nasdaq rose 1.4 per cent and the Dow gained 1.5 per cent.

But the implications of the power shift were still uncertain and investors wondered about the longer-term outlook for Egypt and the wider region.

"Clearly oil is in the biggest play here. Think about if they decide to shut down the Suez Canal," said Cliff Draughn,chief investment officer at Excelsia Investment Advisors in Savannah, Georgia.

Reuters

KARACHI: Rising tension between Pakistan and United States on the issue of release of Raymond Davis, reduced foreign interest and likely downgrading of country's ratings kept Karachi Stock Exchange (KSE) under severe selling pressure last week.

Benchmark index lost 3.8 per cent to end under the psychological level of 12,000 after a month.

The benchmark KSE 100Index dropped 472 points --3.8 per cent-- to close at 11,943 points, KSE 30-index by 560 points --4.63 per cent-- to close at 11,535 points and KSE All Share Index decreased by 307 points --3.58 per cent-- to close at 8,296 points.

Asad Siddiqui, analyst at Invest Cap said that bearish sentiments prevailed in the market throughout the week on the back of the 'Raymond Davis' issue, where mounting US pressure is deteriorating long-standing Pakistan-US relationship.

Furthermore, tensions in Egypt forced foreign investors to pull out their investments from the Emerging and Middle Eastern markets. Pakistan being one of the growing regional markets also started feeling this heat evident from the massive decline in foreign inflows, he added.

According to NCCPL data, offshore investors did a net-buying of just $0.16 million last week. The week began with some dull activities on Monday where investors preferred to stay on the sidelines in the absence of triggers and waited for the confirmation regarding the launch of Margin Trading system (MTS). Therefore index ended with a minor gain of 12 points on Monday.

Thereafter concerns on PakUS relations over Raymond Davis kept the market in the bearish territory in the rest of the weekdays despite assurance by apex regulator on leverage product launch. Therefore index lost

66, 61 and 111 points respectively during the next three days.

Chairman Securities & Exchange Commission of Pakistan (SECP) Mohammad Ali during his visit to Karachi Stock Exchange on Monday assured the general body of the exchange that the much-awaited leverage product would be available for investors by Feb 28.

The selling pressure intensified on Friday mainly due to news about threat to remove Pakistani envoy from Washington if Davis is not released which was later on clarified by the US Embassy as groundless. On the other side, likely downgrading of country's ratings by Moody's dampened sentiments. Therefore index lost 244 points on the last day of the week to close below 12,000 points. Index at one moment during intraday traded touched the lowest level of the week at 11,938 points.

Pakistan could face the risk of a ratings downgrade if it fails to quickly implement reforms to address a growing fiscal deficit, Moody's Investors Service said on Friday. Moody's current rating for Pakistan is B3.

Corporate results failed to provide support to the market where key result announcements during the week included Pakistan State Oil, MCB Bank and Allied Bank.

According to experts results of PSO and ABL were above market consensus while MCB announced below expectation results.

Investor participation too remained low throughout the week as 477 million shares exchanged hands during the week --110 million less than a turnover of 587 million shares a week earlier. Average daily turnover stood at 95 million shares down by 22 million shares from an average volume of 117 million shares.

Out of total 417 active issues0 250 declined and 159 advanced while 8 issues remained unchanged.

Gulf stocks mkt

Emaar up; crude fall weighs on Saudi index DUBAI: Saudi Basic Industries Corp (SABIC) falls as oil price declines weigh on Saudi Arabia's index, with little incentive to push stocks higher as investors wait on developments in Egypt.

SABIC, the kingdom's largest listed company, falls 0.7 per cent. Banks also slip. Banque Saudi Fransi drops 1.2 per cent and Arab Bank loses 1.1 per cent.

The main index dips 0.1 per cent to 6,627 points, its first decline in three sessions.

"There's no incentive for the market to move higher, with oil prices down and companies' financial statements behind us," says Youssef Kassantini, a Saudi-based financial analyst.

"The market will consolidate around current levels and it has strong support at 6,450 points.

"The market has accepted the peaceful transfer of authority in Egypt, but there are worries as to how fast the Egyptian economy can stabilise."

Emaar Properties ends higher, shrugging off a 62 per cent decline in fourth-quarter profit, to lift Dubai's index.

Emaar climbs 0.3 per cent after being up as much as 2.8 per cent intraday. The developer made a quarterly profit of 274 million dirhams ($74.62 million), down from 720 million in the year-earlier period after it took 417 million dirhams in impairments and provisions. These impairments were likely to have come from mortgage affiliate Amlak and Dubai Bank, analysts say.

Dubai's index climbs 0.4 per cent to 1,604 points, its first rise in three sessions.

In Abu Dhabi, RAK Properties adds 2.4 per cent and Dana Gas gains 4.5 per cent.

Abu Dhabi's benchmark rises 0.6 per cent to 2,728 points.

Kuwait banks are mixed as the country's index slumps to a 23week low, with little buying interest amid a lack of market-moving news. National Bank of Kuwait falls 1.4 per cent, but Ahli United Bank rises 2.4 per cent.

The bank index climbs 0.4 per cent, taking its gains over the past 12 month to 45 per cent.-Reuters

Dhiyan

360-DEGREE TRADE Salman Naqvi, Head of Sales Aba Ali Habib Securities The tone of market performance will be set by the developments on the ongoing tension between Pakistan and US. If any major negative news arrives then we might see some more unwholesome activities in the coming days. It is being feared that inflow of foreign funds through IMF, Kerry-Lugar Bill, and Coalition Support Fund might delay.

Investors are therefore advised to stay on the sidelines and adopt 'wait & watch' stance. Market would show mixed performance today.

Syed Faran Rizvi, Technical Analyst Invisor Securities Selling is likely to continue and we still recommend traders to sell particularly in oil and refinery sector stocks. Index can thus come down to 11,540 points in the coming days while there might be a minor support at the level of 11761 points. Investors are advised to buy near 11540 points level in highly oversold stocks. Launching of Margin Trading System (MTS) and a rally in foreign investors' confidence will support the market in future. Market would remain bearish today.

6

Monday, February 14, 2011

Market

KSE 100 Index

Symbols

Volume

477,238,022

Value

15,450,022,114

Trades

270,526

Advanced Declined Unchanged Total

159 250 8 417

Current High Low Change

All Share Index

11,943.34 12,454.68 11,938.24 i472.01

Current High Low Change

OIL AND GAS

Paid up Cap(mn)

Company

PE

Open

High

High Low 1,590.10 1,496.88 Total cos Defaulter cos P/BV (x) ROE (%) 3.58 32.54 Low

Close Chg

Last 60 days High Low

Volume

2010 Div BR (%) (%)

20B115.00

Company

Paid up Cap(mn)

PE

Open

High

High Low 758.47 712.26 Total cos Defaulter cos P/BV (x) ROE (%) 1.39 25.53 Low

Close Chg

691

6.66 387.43

391.50 365.06 368.79 -18.64

522241

401.00

302.25

-

Pak Int Cont.Terminal

1092

6.85

69.97

74.90

69.51

71.24

853

4.65 121.05

125.40 113.17 114.06 -6.99

4501526 146.90

113.17

-

-

-

-

PNSC

1321

35.92

34.93

35.30

32.89

33.05 -1.88

Mari Gas Company

735 16.43 129.56

130.75 120.00 121.25 -8.31

117288

141.65

117.00

31

-

-

-

National Refinery

800

5.54 283.58

291.99 265.05 267.19 -16.39

1238237 335.00

251.80

200

-

-

-

Oil & Gas Development 43009 11.29 172.70

173.25 165.00 166.83 -5.87

993892

185.00

157.56

55

- 15.00

-

Pak Petroleum

Pak Refinery Limited

300

2011 Div BR (%) (%)

Open 717.52 Turnover 1,134,694 P/E (x) 5.44

Attock Refinery

11950

7.49 215.18

215.90 202.50 204.98 -10.20

2827644 229.80

191.10

90

20B 50.00

-

2365

7.20 331.78

332.50 310.50 312.30 -19.48

5664254 341.50

250.20

255

-100.00

-

-

350

P.S.O

1715

-

97.98

4.63 289.31

Shell Gas LPG

226

-

31.60

Shell Pakistan

685 10.63 215.11

110.50

95.01 100.37

2.39

291.80 268.00 273.47 -15.84 32.92

30.35

30.50 -1.10

218.00 206.00 207.27 -7.84

11,535.33 12,130.66 11,487.82 i560.03

822762

122.22

81.01

-

-

-

3341541 317.79

268.00

80

- 50.00

-

30.35

-

-

-

-

194.00

40

-

-

-

5604

39.89

98922

222.00

1.27

Close 719.80 Listed cap 3,242.17 mn Payout (%) 11.08

Volume

Change % Change 2.28 0.32 Market cap 200-Day High 12,341.59 mn Div Yield (%) 200-Day Low 2.04 -

Last 60 days High Low

Performance of SR Chemicals Index Open High Low 1,604.98 1,619.27 1,557.63 Turnover Total cos Defaulter cos 167,403,382 P/E (x) P/BV (x) ROE (%) 9.57 3.35 35.00

Close 1,568.42 Listed cap 52,251.88 mn Payout (%) 48.81

Change % Change -36.57 -2.28 Market cap 200-Day High 345,076.58 mn Div Yield (%) 200-Day Low 5.10 -

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

3924

8.09

24.22

24.50

22.33

22.34 -1.88

135850

26.73

BOC (Pak)

250 12.54

94.43

97.95

89.85

91.27 -3.16

Clariant Pak

273

7.06 200.64

203.75 196.00 197.25 -3.39

Dawood Hercules

1203

7.98 205.98

207.00 192.00 192.53-13.45

Dewan Salman

3663

-

2.92

94

-

11.00

Company

Dynea Pak Engro Corporation Ltd Fatima Fertilizer

3277 11.54 221.05 22000

-

11.98

Fauji Fertilizer

6785

9.18 150.38

Fauji Fert.Bin Qasim

9341

7.71

ICI Pakistan

1388

8.21 145.78

Lotte Pakistan Mandviwala Nimir Ind Chemical

2.86

11.50

10.41

2.98 0.06 11.22 0.22

-

-

2011 Div BR (%) (%) -

-

Company

Paid up Cap(mn)

PE

Open

-

-

-

MA (10-day)

Total Equity (Rs in mn)

3,615.26

15

-

-

-

MA (100-day)

15.11

Revenue (Rs in mn)

1,018.36

MA (200-day)

12.58

Interest Expense

1st Support

16.30

Profit after Taxation

2nd Support

15.85

EPS 10 (Rs)

1st Resistance

17.40

Book value / share (Rs)

10.21

2nd Resistance

18.05

PE 11 E (x)

26.91

Pivot

16.95

PBV (x)

High

High Low 1,289.03 1,247.82 Total cos Defaulter cos P/BV (x) ROE (%) 1.19 25.35 Low

Close Chg

Close 1,260.30 Listed cap 6,768.53 mn Payout (%) 20.42

Volume

Change % Change -11.40 -0.90 Market cap 200-Day High 46,745.78 mn Div Yield (%) 200-Day Low 4.36 -

Last 60 days High Low

77.05

15

-

-

-

FOOD PRODUCERS

135

25B

-

-

91582

215.00

165.73

40

-

-

-

Performance of SR Food Producers Index

4.24

1.52

-

-

-

-

9.15

15 40

-

-

-

9.16

-

-

-

-

7052211 157.90

108.80

130

25B

-

-

40.85 -0.51

16761357 43.99

33.05

52.5

-

-

-

152.48 145.00 145.78 0.00

2545411 158.49

132.70

55

-

-

-

55495990 16.80

11.75 -0.23

152.87 148.60 149.24 -1.14 41.90

40.50

8500 4139299

12.64

-

-

5.86

16.38

16.80

15.77

15.93 -0.45

11.70

5

-

-

-

-

1.17

1.74

1.20

1.40 0.23

28254

2.45

1.01

-

-

-

-

1106

-

2.21

3.17

2.28

2.53 0.32

51476885

3.17

1.40

-

-

-

-

-

2.40

2.40

2.02

2.20 -0.20

44237

120 214

Sitara Peroxide

551 14.76 90

8.72 112.56 6.94

13.19 36.93

117.00 104.00 106.33 -6.23

9628

3.10

2.02

-

-

-

-

139.40

104.00

25

5B

-

-

14.50

13.10

13.58 0.39

1505193

14.69

12.70

-

-

-

-

38.34

36.01

36.10 -0.83

7818

41.99

32.22

50

-

-

-

FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,058.58 Turnover 184,191 P/E (x) 5.24 Company

Close 1,051.92 Listed cap 1,186.83 mn Payout (%) 25.28

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

707 411

6.79

16.05 38.40

16.44 39.50

15.13 37.25

15.95 -0.10 38.00 -0.40

139747 43514

Century Paper Security Paper

Change % Change -6.66 -0.63 Market cap 200-Day High 2,916.35 mn Div Yield (%) 200-Day Low 4.82 -

Last 60 days High Low 19.69 47.70

14.95 37.25

2010 Div BR (%) (%) 50

-

2011 Div BR (%) (%) -

-

PE

Open

High

High Low 1,053.25 998.87 Total cos Defaulter cos P/BV (x) ROE (%) 1.05 33.10 Low

Close Chg

Close 1,011.09 Listed cap 3,596.11 mn Payout (%) 30.91

Last 60 days High Low

Volume

2010 Div BR (%) (%)

2011 Div BR (%) (%)

565

3.02

29.55

29.80

28.50

28.90 -0.65

77611

31.00

24.01

30

-

2.55

2.95

2.35

2.35 -0.20

165783

3.29

2.35

-

555

8.99

14.41

14.50

13.81

14.38 -0.03

38005

16.51

13.81

-

-

-

-

1199 18.22

51.51

52.89

49.50

50.10 -1.41

155505

62.20

44.75

55

20B

-

-

High Low 955.58 878.85 Total cos Defaulter cos P/BV (x) ROE (%) 0.46 7.10

Close 897.24 Listed cap 54,792.74 mn Payout (%) 19.04

PE

Open

High

Low

Close Chg

Volume

-

2.94

3.25

2.81

2.82 -0.12

138607

3.98

2.75

866

6.38

52.00

52.75

49.16

50.43 -1.57

226828

65.99

49.16

858

-

2.80

2.25

2.25 -0.41

4.24

1.10

182

-

20.40

20.62

18.20

18.60 -1.80

176713

24.16

17.10

956 41.25

10.40

10.25

9.55

9.90 -0.50

45576

12.59

9.55

948

-

2.66

Last 60 days High Low

2.06

2.60

1.70

2.00 -0.06

Dewan Cement

3891

-

1.90

2.24

1.85

1.90 0.00

DG Khan Cement Ltd

3651 112.50

29.18

29.50

26.92

27.00 -2.18

2.85

3.05

2.15

2.88 0.03

Fauji Cement Fecto Cement Flying Cement Ltd

350

3.43

6933

6.24

502

3.65

4.63 7.44

4.77 7.44

4.45 7.00

4.49 -0.14 7.00 -0.44

12800

10703

3.49

1.60

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

-

2011 Div BR (%) (%) -

-

-

-

-

-

- 122R

-

-

-

-

-

-

-

-

3.10

1.58

-

-

32.30

26.92

-

20R

-

-

4.00

2.15

-

-

-

-

-

92R

1723772

5.55

14302

4.45

8.20

6.95

-

-

-

-

870020 4235415 7443

-

-

-

1760

-

1.70

1.87

1.62

1.65 -0.05

237282

2.25

1.60

-

-

-

-

77

-

1.86

2.95

1.74

2.93 1.07

34537

3.00

1.29

-

-

-

-

Haydery Const

32

-

0.48

0.69

0.50

0.61 0.13

23695

0.99

0.25

-

-

-

-

Kohat Cement

1288

-

6.30

6.30

5.99

6.00 -0.30

122400

8.70

5.99

-

-

-

-

Lucky Cement

3234

6.08

71.40

71.75

66.00

67.67 -3.73

1796976

78.44

66.00

40

-

-

-

Maple Leaf Cement

5261

1.20

2.63

2.70

2.51

2.57 -0.06

552266

3.30

2.51

-

-

-

-

Pioneer Cement

2228

-

6.90

6.96

6.11

6.26 -0.64

69164

8.20

6.11

-

-

-

-

Safe Mix Concrete

200

-

6.81

7.23

6.50

6.50 -0.31

49028

7.95

5.30

-

-

-

-

Thatta Cement

798 458.50

18.20

18.39

17.00

18.34 0.14

25681

20.44

16.75

-

50R

-

-

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 1,013.42 Turnover 1,049,749 P/E (x) 2.69 Company Cherat Papersack ECOPACK Ltd Ghani Glass MACPAC Films Merit Pack Packages Ltd

High Low 1,024.88 960.96 Total cos Defaulter cos P/BV (x) ROE (%) 1.18 43.91

Close 982.03 Listed cap 3,043.31 mn Payout (%) 15.55

Change % Change -31.40 -3.10 Market cap 200-Day High 36,944.37 mn Div Yield (%) 200-Day Low 5.77 -

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

115

2.77

72.76

73.45

60.41

60.41-12.35

386717

83.23

52.50

2010 Div BR (%) (%) 20

25B

2011 Div BR (%) (%) -

230

-

2.53

2.69

2.41

2.60 0.07

44556

3.30

1.82

-

-

1067

4.81

52.55

55.25

52.00

52.32 -0.23

62951

56.45

45.30

25

10B

-

-

389

-

3.24

4.14

3.15

3.75 0.51

136248

4.14

2.43

-

-

-

-

47 17.81

32.11

33.80

30.31

32.06 -0.05

266380

33.80

17.10

-

-

-

-

130.49 120.00 120.54 -7.49

182256

143.00

103.52

-

-

-

-

844 61.82 128.03

-

50R -

Company AL-Ghazi Tractor

Paid up Cap(mn) 215

PE

Open

Low

Close Chg

240.00 222.56 229.07 -10.68

Close 1,559.03 Listed cap 1,336.62 mn Payout (%) 131.49

Volume 10712

2011 Div BR (%) (%)

92.15 40.85 6.00 2.70 21.61 12.00 69.00 55.00 4.05 54.80 10.76 3.10 39.46 3.10

93.06 42.97 6.26 3.00 21.99 12.20 72.84 56.50 4.20 57.00 10.86 4.47 43.94 3.56

-4.81 -0.02 0.25 0.21 -0.24 -0.10 3.59 1.44 -0.43 1.00 0.61 0.42 2.41 0.26

50050 102.89 14231 54.00 25555 7.15 69759 5.59 499143 36.50 7111 12.95 38652 92.50 24452 68.49 15460 7.18 5970 75.50 5827 14.84 32952 6.99 13115 53.81 66000 4.00

89.78 40.85 5.00 1.60 21.35 11.50 68.00 52.60 4.01 41.52 9.00 3.10 38.50 2.05

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

-

S S Oil Sanghar Sugar Shahmurad Sugar XD Shahtaj Sugar Shakarganj Mills Tandlianwala

57 119 211 120 695 1177

0.25 2.23 2.84 4.09 0.33 14.99

2.90 12.01 9.50 53.53 4.81 41.00

3.12 12.30 9.89 62.04 6.00 43.00

2.90 11.60 8.30 50.93 4.61 39.20

2.95 12.15 8.30 61.09 4.65 41.97

0.05 0.14 -1.20 7.56 -0.16 0.97

17500 6042 21361 14914 67437 33280

2.50 11.35 8.30 50.93 4.46 31.50

15 10 -

-

Open 1,112.44 Turnover 496,973 P/E (x) 2.80 Company

Paid up Cap(mn)

High Low 1,147.01 1,043.56 Total cos Defaulter cos P/BV (x) ROE (%) 0.30 10.64

PE

Open

High

Low

Gauhar Engineering Ltd 22 Hussain Industries 106 Pak Elektron 1219 3.37 Singer Pak 341 26.18 Tariq Glass Ind 231 2.30

0.75 6.88 14.18 20.00 22.30

0.75 7.12 14.59 23.62 22.70

0.60 5.75 13.00 20.50 19.05

Open 990.01 Turnover 49,973,009 P/E (x) 6.98 Company

Paid up Cap(mn)

(Colony) Thal Amtex Limited Artistic Denim Azam Textile Azgard Nine Babri Cotton Bannu Woolen XD Chenab Limited Colony Mills Ltd Crescent Textile D S Ind Ltd Dawood Lawrencepur Dewan Mushtaq Textile Din Textile Gadoon Textile XD Ghazi Fabrics Gillette Pakistan Gul Ahmed Textile Gulistan Spinning Gulshan Spinning Hira Textile Mills Ltd. Ibrahim Fibres Idrees Textile J K Spinning Jubilee Spinning Khurshid Spinning Kohinoor Ind Kohinoor Textile Masood Textile Moonlite (PAK) Nishat (Chunian) Nishat Mills Pak Synthetic Paramount Spinning Premium Textile Ravi Textile Reliance Weaving Rupali Poly Saif Textile Sajjad Textile Sally Textile Salman Noman Samin Textile Saritow Spinning Service Ind Shadman CotSPOT Shahtaj Textile Suraj Cotton Tata Textile Thal Limited Treet Corp Zephyr Textile Ltd

3.85 15.01 13.50 100.26 7.88 43.00

Close Chg 0.60 6.39 13.36 23.30 19.20

-0.15 -0.49 -0.82 3.30 -3.10

Close 1,062.77 Listed cap 3,763.71 mn Payout (%) 6.27

Volume 16000 28104 252983 17753 181332

56 2594 840 133 4493 33 76 1150 2442 492 600 514 34 204 234 326 192 635 146 222 716 3105 180 184 325 132 303 1455 600 22 1614 3516 560 174 62 250 308 341 264 213 88 42 267 133 120 176 97 180 173 307 418 594

PE

Open

1.31 8.48 3.76 6.11 22.05 0.28 2.50 - 11.28 0.47 10.95 0.49 13.76 2.86 3.84 2.49 3.41 17.10 1.72 42.95 35.59 0.14 5.40 0.61 27.00 0.82 70.51 1.06 3.90 - 58.19 4.17 30.00 1.08 5.96 0.88 7.10 0.70 3.99 3.95 53.75 3.42 3.60 1.10 6.80 3.20 1.50 1.50 3.57 5.01 1.99 18.05 - 14.29 2.11 25.79 5.49 66.87 4.24 13.50 0.88 11.50 0.48 30.25 1.35 0.67 9.27 5.03 38.39 0.49 5.49 0.32 0.21 4.39 2.07 4.90 5.00 6.49 0.25 2.25 7.26 221.57 2.79 13.70 - 18.50 0.83 39.50 0.40 40.50 5.05 121.53 8.58 57.68 3.42 3.98

High

High Low 1,003.23 981.15 Total cos Defaulter cos P/BV (x) ROE (%) 0.60 8.64 Low

Close Chg

1.40 1.25 1.25 -0.06 4.24 3.70 3.73 -0.03 23.28 21.60 22.00 -0.05 2.64 2.00 2.00 -0.50 11.81 10.12 10.32 -0.96 12.41 10.01 11.47 0.52 14.60 13.40 13.99 0.23 3.19 2.60 2.70 -0.16 2.85 2.06 2.46 -0.03 18.69 16.45 17.72 0.62 1.87 1.55 1.60 -0.12 38.00 35.00 36.51 0.92 6.00 3.60 4.49 -0.91 29.94 27.00 28.41 1.41 77.40 72.01 75.50 4.99 6.50 4.50 6.50 2.60 61.09 55.29 55.99 -2.20 29.50 28.01 29.05 -0.95 6.89 5.32 5.66 -0.30 7.74 7.02 7.26 0.16 4.05 3.70 3.71 -0.28 54.22 49.77 50.20 -3.55 3.60 3.15 3.15 -0.45 8.80 6.80 7.24 0.44 3.20 2.25 2.45 -0.75 1.50 1.00 1.00 -0.50 1.66 1.32 1.43 -0.07 5.25 4.95 5.00 -0.01 19.40 17.10 18.82 0.77 17.00 14.45 17.00 2.71 26.58 24.60 25.45 -0.34 67.29 62.57 63.91 -2.96 14.45 12.50 12.55 -0.95 12.40 11.95 12.05 0.55 34.40 28.21 30.30 0.05 1.46 1.21 1.27 -0.08 9.90 9.31 9.58 0.31 42.70 38.00 40.01 1.62 6.14 5.00 6.04 0.55 0.42 0.32 0.42 0.10 4.60 4.00 4.25 -0.14 5.75 4.00 4.88 -0.02 6.88 5.70 6.00 -0.49 2.35 1.40 1.55 -0.70 227.00 210.01 212.00 -9.57 16.95 14.65 15.30 1.60 20.05 19.00 19.05 0.55 39.10 37.01 37.01 -2.49 42.00 38.00 41.00 0.50 122.00 116.02 118.10 -3.43 59.90 53.89 53.89 -3.79 4.09 2.60 2.60 -1.38

Last 60 days High Low

2010 Div BR (%) (%)

1.65 11.49 15.88 23.62 24.00

17.5

0.45 4.60 13.00 17.55 15.90

10B -

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

Change % Change -4.85 -0.49 Market cap 200-Day High 136,253.28 mn Div Yield (%) 200-Day Low 2.39 -

Last 60 days High Low

12231 1.50 2378813 5.28 13232 24.59 10495 3.00 19439797 12.84 51944 15.25 39853 15.10 104067 3.76 86080 2.97 37737 23.99 354484 2.10 148140 47.00 80712 8.90 7833 29.94 23185 77.40 12055 6.50 6567 66.48 9705 33.19 70271 8.86 7913 8.50 199843 4.47 112645 55.00 27411 3.90 17002 9.50 20304 5.50 6000 3.00 93505 2.00 21776 5.95 11074 20.74 37300 17.00 16905247 26.58 7709420 71.89 492872 14.45 10216 12.40 13012 34.40 271285 1.98 67506 10.34 174167 42.70 26419 6.85 50000 3.74 6043 4.65 5020 6.35 14389 7.00 13400 2.89 119106 276.50 17730 16.95 8173 20.29 9170 41.95 7259 42.00 23006 132.00 270489 63.30 20523 4.65

-

Change % Change -49.67 -4.47 Market cap 200-Day High 5,116.34 mn Div Yield (%) 200-Day Low 2.24 -

Close 985.16 Listed cap 47,070.70 mn Payout (%) 16.68

Volume

-

2010 Div BR (%) (%)

0.61 3.65 30 19.40 20 1.32 7.5 9.20 8.10 - 15B 12.40 20 2.60 2.06 16.45 15 1.55 35.00 5 2.90 24.02 20 10B 47.00 70 2.99 10 55.29 24.00 12.5 5.26 10 6.30 10 20B 3.31 10 36.26 20 2.70 10 4.05 20 5B 2.25 1.00 0.75 4.81 17.10 15 100R 4.50 21.15 15 52.80 25 45R 6.21 8.25 10 10B 25.00 50 0.65 8.50 25SD 34.70 40 3.90 0.15 3.61 10 2.01 5B 5.11 - 100R 1.00 195.00 7.00 16.35 45 32.60 50 30.00 25 96.30 80 20B 50.76 2.60 -

2011 Div BR (%) (%) -

-

PHARMA AND BIO TECH Open 905.71 Turnover 232,383 P/E (x) 6.53

Change % Change -38.05 -2.38 Market cap 200-Day High 33,600.86 mn Div Yield (%) 200-Day Low 15.81 -

Last 60 days High Low 244.95

2010 Div BR (%) (%)

Performance of SR Pharma and Bio Tech Index

2010 Div BR (%) (%)

2011 Div BR (%) (%)

206.00

150

-

-

-

-

1.33

1.43

1.01

1.04 -0.29

111684

2.40

0.21

-

-

-

-

Ghandhara Ind

213

9.81

11.34

11.90

10.51

10.59 -0.75

104152

13.50

10.51

-

-

-

-

Millat Tractors XB

366

8.29 551.40

556.97 538.00 538.28 -13.12

166368

568.40

482.00

650

25B325.00

-

Dewan Auto Engineering 214

5.49 239.75

High

-

101.79 42.97 6.95 3.25 23.80 12.51 75.75 56.50 4.60 57.00 11.25 4.89 43.94 4.00

Performance of SR Industrial Engineering Index High Low 1,613.60 1,554.63 Total cos Defaulter cos P/BV (x) ROE (%) 3.16 38.02

-

97.87 42.99 6.01 2.79 22.23 12.30 69.25 55.06 4.63 56.00 10.25 4.05 41.53 3.30

INDUSTRIAL ENGINEERING Open 1,597.08 Turnover 404,848 P/E (x) 8.32

2011 Div BR (%) (%)

7.03 1.08 0.63 8.73 7.44 1.29 1.84 21.27 1.17 8.09

Change % Change -47.46 -5.02 Market cap 200-Day High 64,553.15 mn Div Yield (%) 200-Day Low 2.92 -

Berger Paints

Frontier Ceramics

-

-

20B 20B

174 186 214 365 750 200 539 157 141 414 165 109 38 107

Performance of SR Construction and Materials Index

1828

Dandot Cement

- 10.00 -

100 20 150 10

AL-Abbas Sugar XD AL-Noor Sugar Crescent Sugar Dewan Sugar Habib Sugar Habib-ADM Ltd J D WSugar Mehran SugarXDXB Mirza Sugar XD National Foods Noon Sugar Pangrio Sugar XD Premier Sugar XD Quice Food

Performance of SR Personal Goods Index

Cherat Cement

EMCO Ind

Volume

PERSONAL GOODS

Paid up Cap(mn)

Balochistan Glass Ltd

Close Chg

CONSTRUCTION AND MATERIALS Open 944.70 Turnover 14,065,476 P/E (x) 6.52

Attock Cement

Low

Change % Change -23.84 -2.30 Market cap 200-Day High 9,718.95 mn Div Yield (%) 200-Day Low 9.77 -

675

Al-Abbas Cement

High

Last 60 days High Low

HOUSEHOLD GOODS

Crescent Steel

Company

Open

2010 Div BR (%) (%)

Change % Change -36.91 -2.03 Market cap 200-Day High 273,060.05 mn Div Yield (%) 200-Day Low 0.65 -

Performance of SR Household Goods Index

Dost Steels Ltd Huffaz Pipe

PE

Close 1,783.06 Listed cap 11,335.33 mn Payout (%) 30.57

Performance of SR Industrial Metals and Mining Index

Paid up Cap(mn)

International IndSPOT

Company

Paid up Cap(mn)

High Low 1,880.83 1,769.12 Total cos Defaulter cos P/BV (x) ROE (%) 14.31 30.30

INDUSTRIAL METALS AND MINING Open 1,034.93 Turnover 454,444 P/E (x) 3.16 Company

High Low 1,086.29 1,016.86 Total cos Defaulter cos P/BV (x) ROE (%) 0.39 7.47

Open 1,819.97 Turnover 1,063,110 P/E (x) 47.22

-

74

Shaffi Chemical

155.26 15.00 96.90 1.40 21.00 4.33 4.01 10.60 248.00 62.50 18.80

151.55

178.21

11.70

17348 205.00 38910 43.26 6605 143.80 639816 2.89 25609 26.74 182166 5.36 27501 5.75 52060 13.40 69505 309.73 39292 77.90 38069 24.00

103.94

11.98

12.15

202.80 190.90 193.32 -5.44 43.26 35.90 40.53 2.75 140.00 130.00 136.55 1.55 2.32 1.78 1.96 -0.15 25.21 22.80 23.13 -0.84 4.99 4.33 4.50 0.07 4.50 4.20 4.50 0.18 11.55 10.75 10.90 0.02 293.00 288.00 289.00 -1.00 67.90 62.50 62.79 -2.60 24.00 22.55 23.25 -0.10

Company Abbott (Lab) Ferozsons (Lab) GlaxoSmithKline Highnoon (Lab) Sanofi-Aventis Searle Pak

Paid up Cap(mn) 979 250 1707 165 96 306

PE

Open

8.25 95.31 6.88 89.00 13.14 76.24 7.25 28.00 12.89 153.50 5.40 60.54

High

High Low 923.78 890.72 Total cos Defaulter cos P/BV (x) ROE (%) 1.46 22.31 Low

Close Chg

97.99 94.00 94.08 -1.23 98.00 88.00 91.11 2.11 77.90 73.00 73.06 -3.18 27.50 26.13 26.16 -1.84 174.00 153.00 161.98 8.48 61.79 60.00 60.00 -0.54

22,436.60

17.43

40

32.36

213.30

4511781 222.80

221.35 208.10 210.07-10.98

101 5.77 198.76 247 36.19 37.78 626 9.48 135.00 890 2.11 598 19.94 23.97 450 3.13 4.43 200 7.03 4.32 1428 - 10.88 786 6.60 290.00 823 10.00 65.39 150 4.34 23.35

Total Assets (Rs in mn)

68.00

Performance of SR Automobile and Parts Index

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

42.55

39.45

AUTOMOBILE AND PARTS Open 1,271.70 Turnover 1,144,842 P/E (x) 4.69

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

76.65

19144

16997568

2011 Div BR (%) (%)

46350

102103

15142

Sitara Chem Ind Wah-Noble

41.36

3.39

2010 Div BR (%) (%)

20.91

2010 Div BR (%) (%)

1088344

CHEMICALS

Agritech Limited

Nishat Power Limited

Performance of SR Industrial Transportation Index

Close Change % Change 1,513.52 -69.36 -4.38 Listed cap Market cap 200-Day High 65,194.15 mn 1,170,839.27 mn Payout (%) Div Yield (%) 200-Day Low 55.94 5.08 -

Attock Petroleum

Pak Oilfields

Current High Low Change

8,296.13 8,633.57 8,292.52 i307.80

Alert ! Unusual Movements

INDUSTRIAL TRANSPORTATION

Performance of SR Oil and Gas Index Open 1,582.88 Turnover 20,133,911 P/E (x) 11.01

KSE 30 Index

Close 892.42 Listed cap 3,904.20 mn Payout (%) 44.54

Volume 21515 48322 30408 11783 99970 7318

Change % Change -13.29 -1.47 Market cap 200-Day High 29,828.40 mn Div Yield (%) 200-Day Low 6.82 -

Last 60 days High Low 112.50 98.00 89.98 30.48 174.00 69.00

94.00 82.50 70.00 24.15 116.00 58.70

2010 Div BR (%) (%) 20 30

20B -

2011 Div BR (%) (%) -

-

185.49 47.18 0.133

1.64

NPL closed down -1.02 at 16.79. Volume was 87 per cent above average and Bollinger Bands were 47 per cent narrower than normal. The company's profit after taxation stood at Rs55.365 million which translates into an Earning Per Share of Rs0.156 for the 1st quarter of current fiscal year (1QFY11).

NPL is currently 33.5 per cent above its 200-day moving average and is displaying a downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of NPL at a relatively equal pace. Trend forecasting oscillators are currently bearish on NPL.

Karachi Electric Supply Corp Ltd

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

44.05

Total Assets (Rs in mn)

130,784.14

MA (10-day)

2.74

Total Equity (Rs in mn)

(8,737.47)

MA (100-day)

2.49

Revenue (Rs in mn)

MA (200-day)

2.43

Interest Expense

1st Support

2.65

Loss after Taxation

2nd Support

2.55

EPS 10 (Rs)

1st Resistance

2.85

Book value / share (Rs)

2nd Resistance

2.95

PE 11 E (x)

Pivot

2.75

PBV (x)

85,224.08 5,619.80 (15,484.94) (1.176) (0.66) (4.07)

KESC closed unchanged at 2.70. Volume was 75 per cent below average (consolidating) and Bollinger Bands were 15 per cent wider than normal. The company's loss after taxation stood at Rs1.782 billion which translates into a Loss Per Share of Rs0.09 for the 1st quarter of current fiscal year (1QFY11).

KESC is currently 11.1 per cent above its 200-day moving average and is displaying a downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of KESC at a relatively equal pace. Trend forecasting oscillators are currently bearish on KESC.

Silkbank Limited

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

33.86

Total Assets (Rs in mn)

MA (10-day)

2.51

Total Equity (Rs in mn)

MA (100-day)

2.71

Revenue (Rs in mn)

68,664.34 196.91 5,913.32

MA (200-day)

2.82

Interest Expense

1st Support

2.38

Loss after Taxation

5,855.52

2nd Support

2.32

EPS 09 (Rs)

1st Resistance

2.51

Book value / share (Rs)

2nd Resistance

2.58

PE 10 E (x)

Pivot

2.45

PBV (x)

(2,902.91) (3.224) 0.22 11.11

SILK closed down -0.05 at 2.43. Volume was 37 per cent below average and Bollinger Bands were 12 per cent wider than normal. The company's loss after taxation stood at Rs700.335 million which translates into a Loss Per Share of Rs0.32 for the nine months of current calendar year (9MCY10).

SILK is currently 13.8 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 moderate flows of volume out of SILK (mildly bearish).

Trend forecasting oscillators are currently bearish on SILK.

Southern Electric Power Co Ltd

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

35.86

Total Assets (Rs in mn)

9,248.54

MA (10-day)

2.11

Total Equity (Rs in mn)

2,028.39

MA (100-day)

2.24

Revenue (Rs in mn)

1,911.24

MA (200-day)

2.75

Interest Expense

766.96

1st Support

1.92

Profit after Taxation

146.76

2nd Support

1.82

EPS 10 (Rs)

1.074

1st Resistance

2.10

Book value / share (Rs)

14.84

2nd Resistance

2.18

PE 11 E (x)

Pivot

2.00

PBV (x)

0.14

SEPCO closed down -0.14 at 2.01. Volume was 36 per cent below average and Bollinger Bands were 30 per cent narrower than normal.

The company's loss after taxation stood at Rs86.56 million which translates into a Loss Per Share of Rs0.63 for the 1st quarter of current fiscal year (1QFY11).

SEPCO is currently 26.8 per cent below its 200-day moving average and is displaying a downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume out of SEPCO (mildly bearish). Trend forecasting oscillators are currently bearish on SEPCO.

BOOK CLOSURES Company

From

To

Dewan Farooque Motors (TFC) Allied Bank (TFC) Pakarab Fertilizers Int. Ind (Consolidated) KASB Cash Fund Kohinoor Mills # Ideal Energy # Olympia Spng & Weaving Mills # Millat Tractors Faysal Balanced Growth Fund Faysal Income & Growth Fund Faysal Savings Growth Fund Faysal Islamic Savings Fund Faysal Money Market Fund Shadman Cotton Mills Reliance Cotton Spng Mills # Mehran Sugar Mills Frontier Ceramics Gharibwal Cement Ansari Sugar Mills Tandlianwala Sugar Mills Zeal Pak Cement Descon Oxychem # Int. Industries # Pakistan Oilfields Fauji Fertiliser (TFC) NIB Bank

14-Feb 14-Feb 15-Feb 16-Feb 17-Feb 17-Feb 18-Feb 18-Feb 18-Feb 18-Feb 18-Feb 18-Feb 18-Feb 18-Feb 19-Feb 19-Feb 21-Feb 21-Feb 21-Feb 21-Feb 21-Feb 21-Feb 22-Feb 23-Feb 23-Feb

21-Feb 27-Feb 28-Feb 24-Feb 24-Feb 26-Feb 26-Feb 24-Feb 19-Feb 19-Feb 19-Feb 19-Feb 19-Feb 26-Feb 26-Feb 28-Feb 28-Feb 28-Feb 28-Feb 28-Feb 28-Feb 01-Mar 01-Mar 05-Mar

D/B/R

INDICATIONS # Extraordinary General Meeting

Spot AGM/Date

15(I) 08-Feb 325(I) 09-Feb 5 10-Feb 7.5(I) 10-Feb 100(I) 11-Feb 35(F),25(B) 14-Feb -

21-Feb 24-Feb 26-Feb 26-Feb 26-Feb 26-Feb 28-Feb 28-Feb 28-Feb 28-Feb 28-Feb 28-Feb 24-Feb 1-Mar -

7

Monday, February 14, 2011

FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 1,112.45 Turnover 7,198,562 P/E (x) 5.74 Paid up Cap(mn)

Company

High Low 1,133.84 1,051.96 Total cos Defaulter cos P/BV (x) ROE (%) 0.74 12.84

PE

Open

High

Low

Close Chg

Pak Datacom 78 4.85 Pakistan Telecomm Co A 37740 11.97 Telecard 3000 0.61 WorldCall Tele 8606 -

78.99 18.89 2.06 2.65

79.90 19.20 2.24 2.75

77.01 17.80 2.01 2.51

78.50 17.95 2.06 2.57

Close 1,062.26 Listed cap 50,077.79 mn Payout (%) 62.56

Volume

-0.49 -0.94 0.00 -0.08

6616 5439418 683938 1294580

Change % Change -50.19 -4.51 Market cap 200-Day High 73,287.89 mn Div Yield (%) 200-Day Low 10.91 -

Last 60 days High Low

2010 Div BR (%) (%)

82.99 20.65 2.67 3.45

80 17.5 1 -

76.50 17.80 2.01 2.51

2011 Div BR (%) (%)

-

-

-

Atlas Insurance Central Insurance XB Century Insurance Crescent Star Insurance EFU General Insurance Habib Insurance IGI Insurance New Jub Insurance Pak Reinsurance PICIC Ins Ltd Premier Insurance Reliance Insurance XB Silver Star Insurance

369 5.98 279 7.67 457 5.99 121 1250 400 3.10 718 8.32 791 15.85 3000 42.87 350 303 5.99 252 4.23 253 4.17

Paid up Cap(mn)

PE

Open

High

Low

Altern Energy 3426 24.98 Genertech 198 Hub Power 11572 6.80 Japan Power 1560 KESC 7932 Kohinoor Energy 1695 9.84 Kot Addu Power 8803 5.04 Nishat Chunian Power Ltd 3673 3.55 Nishat Power Ltd 3541 2.45 S G Power 178 Sitara Energy Ltd 191 3.27 Southern Electric 1367 Tri-star Power XD 150 -

Company

11.40 0.72 39.52 1.59 2.70 18.18 43.04 16.77 17.81 1.20 17.03 2.15 0.97

11.35 0.86 39.69 1.75 2.99 19.10 43.50 17.00 17.95 1.80 18.50 2.22 1.02

10.35 0.65 36.70 1.51 2.65 17.25 41.11 15.98 16.50 0.43 17.00 1.90 0.77

Close 1,282.44 Listed cap 95,369.29 mn Payout (%) 104.13

Change % Change -68.22 -5.05 Market cap 200-Day High 105,326.96 mn Div Yield (%) 200-Day Low 7.52 -

Close Chg

Volume

Last 60 days High Low

10.99 0.66 37.11 1.57 2.70 17.71 41.49 16.20 16.79 1.10 17.52 2.01 1.00

6963 193918 4898755 644649 5176396 67925 714901 5042460 8123979 12802 577613 3362840 9035

11.45 1.18 41.20 2.15 3.55 22.85 45.85 18.01 18.70 2.10 19.35 2.80 1.49

-0.41 -0.06 -2.41 -0.02 0.00 -0.47 -1.55 -0.57 -1.02 -0.10 0.49 -0.14 0.03

9.00 0.65 34.16 1.50 2.15 17.25 39.00 13.32 14.25 0.43 16.50 1.90 0.70

2010 Div BR (%) (%) 50 15 50 20 -

2011 Div BR (%) (%)

7.8R -

-

GAS WATER AND MULTIUTILITIES Open 1,643.21 Turnover 33,052,425 P/E (x) 10.28 Company

High Low 1,726.68 1,581.49 Total cos Defaulter cos P/BV (x) ROE (%) 1.17 11.41

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

5491 8390

7.31 3.89

26.90 24.91

27.25 27.90

24.30 25.20

24.56 -2.34 25.85 0.94

2969020 33.40 30083405 27.90

Sui North Gas Sui South Gas

Change % Change -45.55 -2.77 Market cap 200-Day High 35,173.35 mn Div Yield (%) 200-Day Low 6.50 -

Last 60 days High Low 24.30 19.95

2010 Div BR (%) (%) 20 15

2011 Div BR (%) (%)

25B

-

-

BANKS Performance of SR Banks Index Open 1,178.22 Turnover 43,244,767 P/E (x) 8.00 Paid up Cap(mn)

Company

Allied Bank Limited Askari Bank Bank Alfalah Bank AL-Habib Bank Of Khyber Bank Of Punjab BankIslami Pak Faysal Bank Habib Bank Ltd Habib Metropolitan Bank JS Bank Ltd KASB Bank Ltd MCB Bank Ltd Meezan Bank Mybank Ltd National Bank Network Mic Bank NIB Bank Samba Bank Silkbank Ltd Soneri Bank Stand Chart Bank United Bank Ltd

PE

Open

7821 6.49 72.82 6427 7.61 17.20 13492 13.82 11.37 7322 7.70 36.11 5004 5.47 4.00 5288 8.36 5280 925.00 3.83 7327 4.43 14.27 10019 7.63 124.37 8732 7.65 25.95 8150 2.42 9509 1.66 7602 9.35 229.83 6983 9.60 18.65 5304 2.57 13455 6.47 77.52 300 1.50 40437 2.74 14335 1.94 26716 2.48 6023 6.92 38716 10.94 7.50 12242 7.49 67.24

High

High Low Close 1,187.61 1,097.53 1,106.15 Total cos Defaulter cos Listed cap - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.12 13.94 40.49 Low

Close Chg

73.50 68.50 68.79 -4.03 17.40 15.90 15.98 -1.22 11.54 10.70 10.78 -0.59 36.70 35.50 35.73 -0.38 4.31 3.75 4.10 0.10 8.68 7.95 8.05 -0.31 3.99 3.62 3.70 -0.13 14.70 13.50 13.74 -0.53 125.75 121.70 122.15 -2.22 26.40 24.90 25.00 -0.95 2.85 2.35 2.64 0.22 1.79 1.60 1.61 -0.05 230.70 206.50 207.65 -22.18 19.05 18.15 18.15 -0.50 3.22 2.55 2.55 -0.02 77.89 73.61 74.13 -3.39 2.00 1.30 1.41 -0.09 2.82 2.60 2.62 -0.12 1.92 1.75 1.81 -0.13 2.61 2.39 2.43 -0.05 7.37 6.62 6.70 -0.22 7.59 7.02 7.11 -0.39 67.39 62.50 63.78 -3.46

545981 2506311 2389652 810772 105134 15312291 187896 230302 679758 44078 2650084 617280 3413216 249491 241678 5403399 9612 1848911 193230 4135713 198496 67640 1403842

Change % Change -72.07 -6.12 Market cap 200-Day High 674,688.62 mn Div Yield (%) 200-Day Low 5.06 -

Last 60 days High Low

Volume

74.00 19.25 11.99 39.49 4.70 10.59 4.50 17.05 128.97 29.28 2.95 2.80 250.48 20.30 3.40 80.61 2.65 3.35 2.17 3.05 8.48 9.04 70.65

57.15 15.55 9.50 32.75 3.62 7.95 3.00 13.50 102.55 20.66 2.30 1.49 199.00 14.80 1.90 65.26 1.06 2.60 1.70 2.39 6.62 7.00 57.51

2010 Div BR (%) (%) 40 10B - 20B - 66R 85 10B -63.46R 10 -

-

-

NON LIFE INSURANCE

Paid up Cap(mn)

Company Adamjee Insurance

High Low 806.85 747.74 Total cos Defaulter cos P/BV (x) ROE (%) 0.65 5.20

PE

Open

EFU Life Assurance

850 34.15

63.12

New Jub Life Insurance

627 28.12

43.95

Close 758.48 Listed cap 11,111.34 mn Payout (%) 79.54

Change % Change -34.25 -4.32 Market cap 200-Day High 47,248.90 mn Div Yield (%) 200-Day Low 6.33 -

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1237 24.48

91.30

92.50

84.32

84.45 -6.85

1293492

96.40

78.53

2010 Div BR (%) (%) 10

2011 Div BR (%) (%)

-

-

-

0.14 -1.98 -1.10 -0.33 -2.43 -0.50 4.28 0.40 -1.19 -0.01 -0.62 0.29 -0.63

17253 11559 91641 36181 206007 18582 69616 12363 1753381 13024 40652 11486 7014

40.00 83.00 11.99 6.30 47.90 15.50 99.88 61.80 19.40 10.75 12.93 7.10 8.20

34.00 56.01 9.50 3.11 37.50 11.01 81.10 55.10 15.49 6.00 9.60 6.40 6.01

10 30 -

10B 55B -

-

UP TO 5000 VOLUME

-

Symbols HAJT TRPOL ULEVER DBCI AGIC KSBP KOHP PAKMI EXIDE FUDLM SRSM SIBL GWLC PKGI ADOS ALQT TRSM UNIC JDMT KOSM MLCFPS MTIL SZTM NOPK RCML SNAI BCL TSMF DMTX ZAHT AGIL JVDC DADX BAWS ALICO YOUW ANSS HWQS STCL NESTLE BWCL WAZIR FNEL SHNI PRWM BATA DFSM UVIC BILF RMPL MIRKS FECS SLCL FZCM TREI ELSM GATI ISIL NAGC CLIM INDF DSML DKTM OTSU FASM PPP IDYM BUXL TRIBL LPGL GRAYS MQTM ARUJ CHAS PECO PGCL DIIL CWSM CFL FZTM SHTM SFL KSTM ISTM HINO ICCT GAMON FANM CLOV ARM HUSS BTL SIEM TOWL COLG CJPL ADAMS BROT ILTM LEUL FTSM BIFO SCL SUTM PTEC KML UPFL LAKST MUKT MFFL DATM BAPL AASM ICL IDSM SPLC FRSM MEHT GUTM ESBL PIAB FIBLM JOPP SASML TICL NATM FIMM SALT MSCL BWHL BAFS CLCPS LATM SFAT

High Low 799.35 721.57 Total cos Defaulter cos P/BV (x) ROE (%) 3.21 3.85

Close 734.27 Listed cap 2,290.72 mn Payout (%) 355.53

Change % Change -39.23 -5.07 Market cap 200-Day High 8,646.71 mn Div Yield (%) 200-Day Low 4.27 -

High

Low

Close Chg

Volume

Last 60 days High Low

2010 Div BR (%) (%)

2011 Div BR (%) (%)

65.49

58.50

60.10 -3.02

148093

86.95

58.50

-

-

-

-

46.14

39.05

41.90 -2.05

23247

49.31

39.05

-

-

-

-

FINANCIAL SERVICES Performance of SR Financial Services Index Open 409.09 Turnover 17,026,325 P/E (x) 11.66 Paid up Cap(mn)

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

High Low 421.56 368.82 Total cos Defaulter cos P/BV (x) ROE (%) 0.25 0.91

PE

Open

High

Low

225 1.39 450 12.14 150 1.43 250 215 2121 10.73 600 769.00 2849 3166 626 0.61 7633 508 500 6.92 1000 26.63 821 4.54 775 978 4.79 100 -

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

0.70 25.77 1.75 2.04 3.00 2.65 7.99 0.79 3.74 1.83 11.95 4.00 26.95 6.90 6.50 2.02 2.70 4.40

0.55 23.75 1.21 1.62 2.10 2.27 7.15 0.50 2.98 1.60 10.05 3.20 25.45 6.32 5.91 1.81 2.21 3.00

Close Chg 0.61 23.79 1.60 1.86 2.10 2.36 7.69 0.58 3.26 1.70 10.39 3.60 25.76 6.39 6.18 1.86 2.30 3.89

-0.02 -1.72 0.20 0.05 -0.85 0.01 0.18 -0.07 0.13 0.02 -1.20 0.04 -0.68 -0.28 0.07 -0.02 -0.34 0.87

Close 381.69 Listed cap 30,336.44 mn Payout (%) 99.56

Volume 112728 202627 49586 80209 12003 45836 22243 21296 818916 51673 12659728 944081 20596 507574 23190 244971 48374 43345

Change % Change -27.40 -6.70 Market cap 200-Day High 17,890.74 mn Div Yield (%) 200-Day Low 3.64 -

Last 60 days High Low

2010 Div BR (%) (%)

0.95 28.00 2.14 2.75 3.00 3.90 8.98 1.09 3.95 2.14 14.05 4.60 32.00 7.59 7.29 2.50 3.00 4.40

11.5 10 -

0.33 23.75 1.15 1.28 0.18 2.26 6.22 0.46 2.95 1.05 10.05 3.20 25.00 6.20 5.70 1.81 2.21 1.42

2011 Div BR (%) (%)

20B 10B -

-

-

EQUITY INVESTMENT INSTRUMENTS Performance of SR Equity Investment Instruments Index Open 1,425.90 Turnover 40,093,149 P/E (x) 20.34

2011 Div BR (%) (%)

Performance of SR Non Life Insurance Index Open 792.74 Turnover 3,597,224 P/E (x) 12.57

Paid up Cap(mn)

Company

Company

Close 1,597.66 Listed cap 12,202.80 mn Payout (%) 66.79

37.59 67.51 9.58 4.30 38.65 13.00 96.81 58.81 16.72 8.99 11.08 6.90 6.71

LIFE INSURANCE

-

Performance of SR Gas Water and Multiutilities Index

36.51 67.50 9.50 3.63 37.50 12.80 92.10 57.50 16.50 8.20 11.00 6.61 6.66

Open 773.50 Turnover 176,940 P/E (x) 5.41

Performance of SR Electricity Index High Low 1,367.92 1,268.04 Total cos Defaulter cos P/BV (x) ROE (%) 1.29 9.35

37.88 74.69 10.80 5.94 42.99 13.50 96.81 60.25 18.27 9.00 11.51 7.00 7.50

Performance of SR Life Insurance Index

ELECTRICITY Open 1,350.66 Turnover 28,836,835 P/E (x) 13.84

37.45 69.49 10.68 4.63 41.08 13.50 92.53 58.41 17.91 9.00 11.70 6.61 7.34

Paid up Cap(mn)

Company

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

264 1375 525 75 780 65 200 113 524 300 581 760 397 1008 3180 1186 283 1200 184 1000 250 1000 2835 2841 872 340 545 454

High Low 1,574.28 1,389.93 Total cos Defaulter cos P/BV (x) ROE (%) 0.45 2.21

PE

Open

High

Low

12.50 8.93 2.38 2.19 3.27 3.36 1.65 3.13 12.50 9.93 0.71 2.37 2.47 6.12 72.50 1.33 1.47 2.72 13.10 6.25 5.94 3.36 4.39 3.72 2.27 7.53 4.75

1.52 9.95 4.80 3.31 1.54 1.21 0.71 3.00 1.85 3.50 1.89 3.28 8.15 6.97 5.68 5.61 2.81 9.05 1.75 4.00 6.00 7.21 14.50 6.62 1.00 1.40 7.89 9.52

2.00 11.50 6.40 4.00 1.70 1.99 0.74 3.15 2.38 4.19 2.57 3.89 8.00 7.25 6.17 6.61 3.00 10.24 1.76 4.73 6.50 8.83 16.49 7.95 1.10 1.98 8.00 10.15

1.35 9.70 4.52 3.31 1.40 1.02 0.52 2.12 1.80 3.50 1.85 3.05 7.39 7.00 5.31 5.27 2.00 8.60 1.29 3.86 6.01 6.81 13.90 6.50 0.90 1.02 7.52 9.50

Close 1,466.95 Listed cap 29,771.58 mn Payout (%) 104.74

Change % Change 41.05 2.88 Market cap 200-Day High 19,759.21 mn Div Yield (%) 200-Day Low 8.00 -

Close Chg

Volume

Last 60 days High Low

2010 Div BR (%) (%)

2.00 10.72 5.90 3.33 1.44 1.48 0.66 2.50 2.00 3.97 2.25 3.32 7.40 7.10 5.80 5.53 2.00 9.47 1.31 4.00 6.42 8.12 14.66 6.84 1.00 1.47 7.53 9.70

20087 7176882 1594384 20646 30225 9712 41844 5422 72228 7450 185509 3238520 9693 32200 3337582 4099278 9003 5831249 16830 97498 7500 4155781 4775393 5191497 38094 15763 15806 41377

2.34 11.50 6.40 4.00 2.79 1.99 0.87 3.49 2.98 5.44 2.57 3.89 9.00 7.30 6.17 6.61 3.50 10.24 2.50 4.73 7.74 8.83 16.49 7.95 1.20 2.54 9.00 10.29

18.5 2.2 0 1.2 5 17 11 21 5 10 2.8 15.5 15 10 10 20 10 3 1 18.2 17

0.48 0.77 1.10 0.02 -0.10 0.27 -0.05 -0.50 0.15 0.47 0.36 0.04 -0.75 0.13 0.12 -0.08 -0.81 0.42 -0.44 0.00 0.42 0.91 0.16 0.22 0.00 0.07 -0.36 0.18

1.16 6.20 3.51 2.89 1.30 1.00 0.16 2.10 1.15 2.55 1.61 2.67 6.25 6.20 3.20 3.10 1.26 5.18 0.92 2.92 4.50 5.31 8.82 4.27 0.81 0.50 5.01 8.51

2011 Div BR (%) (%)

10B - 10.00 - 12.50 - 7.50 -

-

Open 0.49 0.53 4385.65 1.68 10.89 61.26 4.25 1.08 197.00 6.25 3.63 3.40 6.98 7.98 16.43 9.00 2.00 6.74 14.99 1.40 4.17 0.47 7.00 23.36 41.00 43.50 44.48 1.15 2.90 2.74 71.10 61.45 22.00 5.05 17.50 1.38 5.55 19.70 8.76 3405.44 12.54 7.01 7.07 10.99 13.50 642.11 3.97 2.50 1.75 2420.30 50.69 33.61 1.20 59.68 2.00 20.36 46.74 76.95 16.38 4.00 1.12 1.20 1.99 33.00 34.67 42.40 262.49 11.61 1.24 14.60 48.50 8.30 4.50 9.40 144.33 22.85 11.91 1.35 15.00 420.00 0.30 108.21 0.74 8.00 122.21 1.42 1.29 3.35 62.49 16.00 11.29 58.02 1091.06 10.01 960.00 0.90 15.50 0.60 104.55 1.01 1.24 44.20 88.00 33.85 2.00 2.48 1105.09 277.75 0.46 79.00 0.35 8.21 27.25 26.32 7.45 0.74 17.98 61.75 19.66 2.35 3.11 1.52 12.50 9.50 62.38 15.00 62.99 69.24 13.00 32.50 56.96 2.45 8.00 6.26

High 0.50 1.29 4544.99 2.00 10.89 62.75 4.65 1.49 199.74 6.34 4.25 3.30 6.85 8.50 16.25 9.00 2.00 7.00 15.40 1.50 4.50 0.60 7.00 24.40 43.00 45.15 48.63 1.57 2.80 3.50 74.97 64.52 21.00 5.50 18.50 1.49 5.55 18.70 8.60 3580.00 12.71 7.95 6.11 11.40 14.90 672.00 4.20 3.11 1.84 2925.00 53.00 36.97 1.50 59.53 1.99 22.45 49.20 80.50 16.45 4.99 1.12 2.50 2.10 34.00 35.10 46.20 302.00 12.19 1.91 13.60 49.00 8.42 4.60 10.40 149.99 21.75 11.94 2.00 15.10 429.50 0.49 108.21 0.84 8.00 135.00 1.84 3.65 3.30 62.49 16.00 11.50 60.90 1102.00 11.30 945.00 1.18 16.25 0.89 127.61 1.80 1.45 45.95 92.00 34.25 2.68 3.75 1340.33 280.00 0.74 82.30 0.84 9.21 28.50 25.02 9.20 0.74 18.40 64.50 20.30 3.00 4.25 2.44 13.50 9.50 62.44 19.00 62.95 74.74 13.69 35.59 60.00 3.99 10.00 6.48

Low

Close

0.49 0.52 4125.02 1.60 10.20 59.50 4.00 0.92 188.01 6.12 3.44 2.60 4.70 7.50 15.05 7.80 1.50 6.70 13.50 0.97 4.15 0.31 6.00 22.00 40.00 41.25 43.10 1.19 2.80 3.25 69.25 59.70 18.06 5.05 16.50 1.39 5.00 14.71 7.00 3335.00 11.03 7.50 4.10 10.41 13.75 621.00 3.40 1.68 0.95 2300.00 48.16 31.95 1.20 51.60 1.30 20.90 44.75 73.11 16.10 4.00 0.15 2.20 1.99 32.00 34.70 41.80 256.70 10.00 1.24 10.15 47.00 7.85 4.50 9.00 135.85 19.62 9.25 1.30 14.10 400.91 0.34 102.80 0.50 7.50 120.55 0.65 1.50 3.00 56.41 15.01 10.49 56.30 1035.99 8.08 891.01 0.53 15.20 0.44 99.33 1.00 0.99 42.90 90.00 33.01 2.00 1.51 1107.09 240.01 0.28 69.25 0.35 7.36 24.52 23.07 6.81 0.62 17.50 57.95 19.29 1.55 1.54 1.50 11.50 8.50 56.31 16.00 60.20 65.78 12.00 33.90 56.96 2.99 8.00 5.99

0.50 0.56 4145.50 1.84 10.34 60.60 4.50 0.92 194.83 6.22 4.04 2.75 6.85 7.71 15.05 7.80 1.50 7.00 13.51 1.25 4.31 0.43 7.00 23.55 42.00 41.25 46.15 1.29 2.80 3.27 70.15 59.70 19.96 5.49 16.60 1.45 5.10 16.71 8.40 3351.10 12.67 7.50 5.76 10.41 14.00 625.25 4.20 2.70 1.69 2873.23 50.49 35.97 1.50 52.49 1.30 22.45 49.00 79.42 16.24 4.90 0.45 2.50 2.10 33.99 35.01 43.50 300.00 10.10 1.28 10.15 48.00 7.85 4.60 9.65 138.00 19.63 10.11 1.95 14.10 419.00 0.37 102.87 0.67 7.90 128.00 1.49 1.70 3.00 56.41 15.30 10.99 58.01 1095.90 8.08 900.00 0.99 15.39 0.89 127.61 1.00 1.45 45.95 90.00 33.01 2.68 2.89 1340.32 240.01 0.44 72.12 0.84 8.40 24.52 23.07 8.10 0.63 17.96 58.95 19.29 2.39 4.25 1.62 12.50 8.50 56.50 19.00 60.20 71.01 12.85 35.59 58.00 2.99 9.99 5.99

Change

Vol

0.01 0.03 -240.15 0.16 -0.55 -0.66 0.25 -0.16 -2.17 -0.03 0.41 -0.65 -0.13 -0.27 -1.38 -1.20 -0.50 0.26 -1.48 -0.15 0.14 -0.04 0.00 0.19 1.00 -2.25 1.67 0.14 -0.10 0.53 -0.95 -1.75 -2.04 0.44 -0.90 0.07 -0.45 -2.99 -0.36 -54.34 0.13 0.49 -1.31 -0.58 0.50 -16.86 0.23 0.20 -0.06 452.93 -0.20 2.36 0.30 -7.19 -0.70 2.09 2.26 2.47 -0.14 0.90 -0.67 1.30 0.11 0.99 0.34 1.10 37.51 -1.51 0.04 -4.45 -0.50 -0.45 0.10 0.25 -6.33 -3.22 -1.80 0.60 -0.90 -1.00 0.07 -5.34 -0.07 -0.10 5.79 0.07 0.41 -0.35 -6.08 -0.70 -0.30 -0.01 4.84 -1.93 -60.00 0.09 -0.11 0.29 23.06 -0.01 0.21 1.75 2.00 -0.84 0.68 0.41 235.23 -37.74 -0.02 -6.88 0.49 0.19 -2.73 -3.25 0.65 -0.11 -0.02 -2.80 -0.37 0.04 1.14 0.10 0.00 -1.00 -5.88 4.00 -2.79 1.77 -0.15 3.09 1.04 0.54 1.99 -0.27

5000 4971 4962 4960 4900 4676 4598 4576 4432 4405 4087 4069 3786 3725 3714 3501 3500 3412 3337 3285 3113 3006 2900 2813 2760 2595 2545 2507 2500 2468 2387 2342 2254 2110 2024 2010 2000 1981 1971 1868 1815 1805 1740 1528 1522 1512 1501 1408 1211 1208 1204 1195 1187 1141 1140 1126 1119 1085 1002 1000 1000 1000 1000 994 993 930 917 898 856 774 708 701 700 656 645 575 521 521 519 516 515 500 447 440 352 350 309 300 283 280 245 244 242 235 217 209 204 202 116 105 104 102 100 80 76 72 71 68 65 62 53 49 45 40 36 32 25 25 22 20 19 13 12 10 10 10 10 7 2 2 2 2 2 2

BOARD MEETINGS

Fauji Fertiliser Bin Qasim Ltd

KSE 100 INDEX

Fauji Fertiliser Co

Nishat Mills Ltd

Company

Date

Time

Al-Ghazi Tractors Limited Rafhan Maize Products Nestle Pakistan Limited Central Forest Products Ltd Sitara Chemical Industries Ltd Pakistan Paper Products Ltd Unilever Pakistan Limited Engro Corporation Limited Pakistan Refinery Ltd Otsuka Pakistan Limited.

Kohinoor Energy Limited

14-Feb 14-Feb 14-Feb 14-Feb 14-Feb 14-Feb 14-Feb 14-Feb 14-Feb 15-Feb 15-Feb

3:00 11:30 9:30 10:00 11:00 11:30 2:30 9:30 10:30 10:30 12:00

TECHNICAL LEVELS Company

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position 11,842.05

Fair Value

*Invest Cap

39

AKD Securities Ltd

45.52

TFD Research

44.25

35.53

Support 1

MA (5-day)

12,243.68

Support 2

11,740.75

MA (10-day)

12,286.79

Resistance 1

12,140.80

MA (100-day)

11,315.57

Resistance 2

12,338.25

Technical Analysis

MA (200-day)

10,617.04

Pivot

12,039.50

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

KSE 100 INDEX closed down -472.01 points at 11,943.34. Volume was 23 per cent below average and Bollinger Bands were 17 per cent narrower than normal. As far as resistance level is concern, the market will see major 1st resistance level at 12,140.80 and 2nd resistance level at 12,338.25, while Index will continue to find its 1st support level at 11,842.05 and 2nd support level at 11,740.75.

KSE 100 INDEX is currently 12.5 per cent above its 200-day moving average and is displaying a downward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions.

Volume indicators reflect volume flowing into and out of INDEX at a relatively equal pace. Trend forecasting oscillators are currently bearish on INDEX.

Brokerage House

Fair Value

Rs Recommendations

TFD Research

Free Float Shares (mn) 326.94 Free Float Rs (mn) 13,355.44 CFS Shares (mn) N/A CFS Rs (mn) N/A CFS Rate N/A ** NOI Rs (mn) 78.36

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

Buy

*Invest Cap

149

Hold

AKD Securities Ltd

145

Reduce

TFD Research

Positive

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

139.5

Neutral

Technical Outlook

Leverage Position 175.80 11,235.37 N/A N/A N/A 70.55

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

Leverage Position

58.56 150.29 121.31 114.40 150.56 150.74

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

373.19 55,694.86 N/A N/A N/A 37.25

* Target price for Jun-11 & **Net Open Interest in future market FFC closed down -1.14 at 149.24. Volume was 86 per cent above average and Bollinger Bands were 38 per cent narrower than normal.

FFC is currently 30.4 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 FFC at a relatively equal pace. Trend forecasting oscillators are currently bullish on FFC.

Brokerage House

TFD Research

381.35

Positive

TFD Research

Fair Value

Rs Recommendations

Brokerage House

Fair Value

Rs Recommendations

Brokerage House

Fair Value

Rs Recommendations

25

Buy

*Invest Cap

52.4

Sell

*Invest Cap

23.91

Buy

AKD Securities Ltd

75.5

Neutral

AKD Securities Ltd

42.1

Accumulate

Positive

TFD Research

92.3

Positive

TFD Research

50.3

Positive

25.8

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

Hub Power Co Ltd

National Bank of Pakistan

Technical Outlook

Technical Outlook 107.94 33,710.59 N/A N/A N/A 151.62

42.08 65.64 58.22 52.86 65.50 64.93

Rs Recommendations

Accumulate

Technical Outlook Technical Analysis

Fair Value

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

*Invest Cap

Leverage Position

78.6

Brokerage House

NML closed down -2.96 at 63.91. Volume was 39 per cent below average and Bollinger Bands were 13 per cent narrower than normal.

NML is currently 20.9 per cent above its 200-day moving average and is displaying a downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of NML at a relatively equal pace. Trend forecasting oscillators are currently bearish on NML.

AKD Securities Ltd

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

77 71.45

Rs Recommendations

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

Hold

39.52 325.78 278.30 251.74 323.69 321.50

Neutral

Fair Value

FFBL closed down -0.51 at 40.85. Volume was 0.01 per cent above average and Bollinger Bands were 44 per cent narrower than normal.

FFBL is currently 30.6 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 FFBL at a relatively equal pace.

Trend forecasting oscillators are currently bullish on FFBL.

Neutral

Technical Analysis

*Invest Cap AKD Securities Ltd

Leverage Position

54.97 41.11 34.48 31.30 41.30 41.20

322.42

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

Hold Accumulate

Technical Outlook

AKD Securities Ltd

360

Brokerage House

Pakistan Telecommunication Co Ltd

Pakistan Oilfields Ltd

*Invest Cap

Rs Recommendations

29.20 18.65 19.18 19.19 18.54 18.50

585.02 10,501.17 N/A N/A N/A 7.75

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

38.35 76.51 70.05 68.36 76.15 75.75

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

Buy

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)

47

318.50 23,610.25 N/A N/A N/A 124.63

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

41.18 38.37 35.98 35.06 38.32 38.20

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

810.01 30,059.40 N/A N/A N/A 1.13

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

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

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

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

POL closed down -19.48 at 312.30. Volume was 7 per cent below average and Bollinger Bands were 34 per cent narrower than normal.

POL is currently 24.1 per cent above its 200-day moving average and is displaying a downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume out of POL (mildly bearish). Trend forecasting oscillators are currently bearish on POL.

PTC closed down -0.94 at 17.95. Volume was 12 per cent below average and Bollinger Bands were 96 per cent wider than normal.

PTC is currently 6.4 per cent below its 200-day moving average and is displaying a downward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of PTC at a relatively equal pace. Trend forecasting oscillators are currently bearish on PTC. Momentum oscillator is currently indicating that PTC is currently in an oversold condition.

NBP closed down -3.39 at 74.13. Volume was 50 per cent below average (consolidating) and Bollinger Bands were 32 per cent narrower than normal.

NBP is currently 8.4 per cent above its 200-day moving average and is displaying a downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of NBP at a relatively equal pace. Trend forecasting oscillators are currently bearish on NBP.

HUBC closed down -2.41 at 37.11. Volume was 47 per cent above average and Bollinger Bands were 27 per cent wider than normal.

HUBC is currently 5.8 per cent above its 200-day moving average and is displaying a downward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume out of HUBC (mildly bearish). Trend forecasting oscillators are currently bearish on HUBC.

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

RSI 1st 2nd (14-day) Support 36.92 2.75 2.65 43.17 67.60 66.40 10.74 48.90 47.40 37.01 23.40 22.80 30.38 23.30 22.85 35.96 82.70 80.95 31.17 15.65 15.30 42.77 9.90 9.50 46.24 362.55 356.35 32.09 111.55 109.00 39.86 10.55 10.35 43.83 3.65 3.55 29.63 7.85 7.70 41.41 1.75 1.65 30.52 26.40 25.85 49.08 2.80 2.65 31.68 2.30 2.25 36.44 37.60 36.55 21.42 58.75 57.35 49.25 206.95 203.80 34.30 13.30 12.90 30.37 4.40 4.30 55.21 40.35 39.80 59.36 147.60 145.95 47.32 121.30 120.50 41.46 36.45 35.80 47.57 144.15 142.55 57.52 288.15 287.35 40.22 3.25 2.90 42.10 1.50 1.40 57.86 2.50 2.40 44.21 9.90 9.40 39.27 40.90 40.30 44.00 2.60 2.55 57.60 15.65 15.40 30.82 66.00 64.35 29.74 204.05 200.45 35.63 2.50 2.40 38.81 73.10 72.10 62.44 24.85 24.25 45.26 22.50 22.00 33.85 2.55 2.50 59.49 2.35 2.15 42.36 62.35 60.80 34.81 164.40 161.95 53.17 3.00 2.90 39.91 1.80 1.75 51.13 2.40 2.30 34.36 6.00 5.75 40.03 307.95 303.60 36.01 201.20 197.40 31.95 61.55 60.35 30.50 266.85 260.20 29.64 17.60 17.25 44.25 203.85 200.40 28.87 23.95 23.35 52.52 13.30 13.05 66.47 25.25 24.60 40.64 2.00 1.90 38.19 3.00 2.95 36.67 62.45 61.10 39.95 2.50 2.40

1st

2nd

Resistance 3.00 3.20 70.90 73.00 52.15 53.90 24.95 25.85 24.70 25.65 87.80 91.20 16.60 17.15 10.90 11.55 377.50 386.20 118.20 122.35 11.15 11.50 3.75 3.85 8.30 8.60 2.10 2.30 28.10 29.20 3.20 3.40 2.45 2.55 39.60 40.55 61.25 62.35 214.35 218.60 14.30 14.90 4.60 4.75 41.55 42.20 151.90 154.50 123.35 124.60 38.00 38.90 148.25 150.75 289.90 290.85 3.90 4.20 1.65 1.80 2.80 2.95 11.05 11.65 42.30 43.10 2.80 2.95 16.35 16.70 69.30 70.95 213.70 219.80 2.65 2.75 75.60 77.10 26.20 27.00 24.00 25.00 2.70 2.85 2.75 3.00 65.70 67.45 169.90 172.95 3.15 3.25 1.95 2.05 2.70 2.85 6.60 6.95 319.20 326.10 210.10 215.15 64.95 67.10 281.25 289.05 18.50 19.10 212.85 218.40 25.50 26.45 14.00 14.45 26.85 27.80 2.15 2.25 3.20 3.25 65.20 66.60 2.65 2.75

Pivot 2.90 69.70 50.65 24.30 24.25 86.05 16.25 10.50 371.30 115.70 10.90 3.70 8.15 2.00 27.50 3.05 2.40 38.55 59.85 211.20 13.90 4.55 41.00 150.25 122.55 37.35 146.65 289.10 3.55 1.60 2.70 10.55 41.70 2.75 16.05 67.65 210.10 2.60 74.60 25.60 23.50 2.65 2.60 64.15 167.45 3.05 1.90 2.60 6.35 314.85 206.30 63.75 274.65 18.15 209.40 24.90 13.75 26.20 2.10 3.10 63.85 2.60

AIG, Mitsui expand in Malaysia 8

Monday, February 14, 2011

NICL graft gives NA body bad headaches

BRUSSELS: The KBC logo is seen at the entrance the Belgian banking and insurance group in Brussels.-Reuters

Obama housing paper includes govt insurance fund WA S H I N G T O N : U S President Barack Obama's housing revamp options to be unveiled on Friday include creating an insurance fund for mortgage-backed securities that is similar to the Federal Deposit Insurance Corp, sources familiar with the document told Reuters.

The paper lays out three legislative choices for making long-term changes to the US housing finance system, while also taking near-term steps to slowly lessen the government's role in the mortgage market now dominated by Fannie Mae and Freddie Mac. The paper separately backs a gradual wind-down of the two firms by increasing the fees they charge, making it easier for privately backed loans to compete. That could be done without Congress.

Another alternative in the document includes leaving the Federal Housing Administration as the sole mechanism for government-

backed mortgages, leaving most of the market to the private sector.

Newly empowered Republicans in the US House of Representatives and Democrats in the Senate would have to come to agreement on which course to follow.

Having taken more than $150 billion in direct taxpayer funds since being seized by the government more than two years ago, Fannie Mae and Freddie Mac are the largest recipients of bailout assistance stemming from the financial crisis of 2007-2009.

Policymakers have deliberately delayed decisions on what to do about Fannie Mae and Freddie Mac while the US housing market remains fragile.

By not presenting a single concrete legislative proposal, the administration has shifted pressure to House Republicans to make the next move.

Texas Representative Jeb Hensarling, the fourth highest

ranking Republican, has a plan to wind-down Fannie Mae and Freddie Mac within five years and let the private market fill their role.

Hensarling, however, has not yet introduced his plan and it is unclear when Republican leaders may begin to take action on that bill.

A middle course would be to set up a system that would allow the government to backstop a substantial number of mortgages only during times of crisis.

The most government involvement would involve creation of an insurance system that would provide "catastrophic coverage" for mortgage bond investors.

The government, however, would only be on the hook as a last resort because the private firms creating the mortgage bonds would be the first to take losses if borrowers defaulted.

Only if those firms went under would the government pay the bondholder. -Reuters

SCBPL customers to get discounted auto insurance KARACHI:Standard Chartered Bank (Pakistan) Limited - SCBPL- and TPL Direct Insurance Ltd (TDI) signed an agreement that allows all Standard Chartered account and credit card holders to be eligible for an exclusive discount on TDI Auto Insurance Products. This will enable SCBPL customers to get the most competitive auto insurance rates in the market.

Standard Chartered is Pakistan's largest international Bank. The bank is keen on building longterm partner-

ships with its clients by offering banking solutions that help add value to their businesses.

Commenting on this agreement, Aalishaan Zaidi, Head of Consumer Banking said, "We are extremely pleased to launch another enhancement to our Retail Products.

This agreement is a good example of Standard Chartered living up to its brand promise. It's here for good, and reflects our ongoing commitment towards bringing new and innovative

customer solutions to the market."

Saad Nissar, CEO, TDI said, "TPL Direct Insurance and Standard Chartered Bank share a common vision of customer convenience and giving something extra to create the right value for their customers."

TDI is the first Direct Insurance Company of Pakistan offering 24/7 services, with fastest insurance claim lodging, processing and settlement times in the local industry.-Agencies

AIG’s Chartis offers $571mn buyout for Fuji Fire LONDON: Chartis Inc, a property insurance unit of American International Group (AIG.N), said it would make a tender offer to buy the rest of Fuji Fire and Marine (8763.T) for about 47 billion yen ($571 million) to revamp the Japanese insurer's operations.

Chartis, which already owns 54.7 per cent of the mid-sized insurer, is offering to buy Fuji

shares at 146 yen per share between February 14 and March 24, representing a 25.9 per cent premium to Thursday's closing share price.

Japan's 8 trillion yen propertycasualty insurance market has been in a steady decline as the country's aging population buys fewer cars and builds fewer homes. The trend has

triggered a major industry consolidation in recent years with the formation of three leading companies, MS&AD Insurance 8275.T, Tokio Marine Holdings and NKSJ Holdings. Chartis said it and Fuji had decided the buyout would allow swift and drastic restructuring of the company in the current business environment. -Reuters

Max India sees insurance edge to consolidated profit in FY11 NEW DELHI: Insurer and hospital operator Max India Ltd expects to be in the black in 2010-11 on a consolidated basis as its life insurance business turns around, a top executive said .

A combination of change in product mix, volume and cost rationalisation has made the life insurance business profitable in Oct-Dec, Mohit Talwar, director, corporate development, told Reuters by telephone.

Max India, which draws about 85 per cent of its revenue from life insurance business, has a 74:26 joint venture with New York Life International. Max should turn profit for the entire fiscal even though first nine months have ended in losses, Talwar said.

"We made a dramatic switch from ULIPs (mutual fund like products) to traditional products because our strength clearly lies in the traditional products," Talwar said, adding the quick change in product mix helped drive sales.

ULIPs share has now fallen to about 20 per cent of its offering from 70 per cent before August 2010 after regulatory restrictions squeezed margins on ULIPs and prompted most insurers to shift to traditional products, Talwar said.

The company shut some branches and reduced its agents' strength to 55,000 from 75,000 but benefitted from a distribution tie-up with Axis Bank.

Talwar said the life insurance business will be self-sustaining going forward and would need no further capital.

New insurance business at Max would be flat or grow by about 10 per cent in 2011/12, while the private insurance sector will 'probably be negative' as insurers adjust to the changed regulations, Talwar said.

Max India had reported a consolidated profit before tax of 380 million rupees against a loss of 940 million rupees in the year ago period.

Consolidated operating revenue grew 16 per cent to 16.78 billion rupees.

During the quarter, gross premium income grew 15 per cent to 14.65 billion rupees.-Reuters

ISLAMABAD: National Assembly Standing Committee of Commerce has expressed concern over the corruption scandal charges in National Insurance Company Limited (NICL).

Although the matter is subjudice in the Supreme Court, however meeting of the committee was convened to get updates on the issue and take remedial measures.

The committee, chaired by MNA Engineer Khurram Dastigir Khan, was concerned that there was no institutional channels in Ministry of Commerce and NICL to check the corruption and accountability as scandal of about Rs 5 billion was pointed out there.

The committee questioned why the matter had to be trialed in the Honorable Supreme Court and why not concerned officials in the ministry and NICL pointed out and investigated the matter.

The committee was of the view that the concerned officers failed to check the corruption and the Internal Audit Teams also did not point out the issues.

Furthermore, the committee recommended that evaluation should be made carefully and advised the ministry and NICL to constitute BoDs in such a way that no corruption could be carried out. The relevant rules and procedures should be revised after thorough work by the professionals and experts

otherwise the committee will propose stern action.

The committee hoped that Present Acting Chairman, NICL will act with full responsibility as NICL is still intact, earning premium of Rs6 billion and profit of Rs2 billion annually. The committee noted with concern that Mohammad Elahi, Manager of Chaudhry families transferred Rs22 crore to Moonis Ellahi and desired that the matter should be looked in depth.

The committee expressed concern that neither minister nor secretary commerce were present in the meeting and advised in future that Secretary should be present in the meeting. Nawab Abdul Ghani Talpur, MNA, Yasmeen Rehman, MNA, Ch Iftikhar Nazir, MNA, Haji Muhammad Akram Ansari, MNA, Kashmala Tariq, MNA, Jamila Gilani, MNA, Shireen Arshad Khan, MNA, Hamid Yar Hiraj, MNA, Shahid Sheikh, Additional Secretary Commerce, Tariq Puri, Acting Chairman, NICL and other Officers of related departments attended the meeting.

Meanwhile, an additional district and sessions judge issued notices to FIA for February 12 on an application against the impugned orders of a judicial magistrate to initiate proceedings to declare the accused Moonis Elahi as a proclaimed offender in NICL scam. -APP

SLIC directed to raise 273 employees salaries LAHORE: A full bench of the Supreme Court headed by Justice MA Shahid Siddiqui has directed State Life Insurance Corporation (SLIC) to give the benefit of revised pay scale to its 273 officers.

The bench also warned the respondent SLIC corporation of strict action if needful was not done in line with the mode already laid down by the Federal Service Tribunal in 2004.

The bench disposed of the appeals moved by Muhammad Islam and others, after SLIC legal advisor undertook to comply with the Tribunal's order with respect to revising salaries on the basis of payscale of 1998.

Earlier petitioner's counsel AK Dogar pointed out before the court that under the

revised salaries the appellants were to get raise in different ratio starting from 25 per cent of the basic.

According to this calculation employees had to take benefit of 'next stage' which was being denied to them by way of working out their revised salaries below this bottom line, the counsel submitted.

He said that despite the fact this issue was settled by the Tribunal, it remained unimplemented for one pretext or the other by the SLIC. The bench took a very serious view that the petitioners had been running from pillar to post over the last seven years but the Corporation did not bother to act upon the Tribunal's decision which had no ambiguity. -APP

Insurers at KSE track broader trend last wk TFD Report KARACHI: Tracking the overall bearish trend, insurance stocks too weakened last week at the Karachi Stock Exchange (KSE) with low investor participation as around 3.8 million shares traded together in life and non-life stocks.

Pak Reinsurance was the volume leader with 1.75 million shares followed by Adamjee

Insurance with 1.29 million shares.

Adamjee Insurance dropped Rs6.85 to close at Rs84.45 and EFU Life Assurance by Rs3.02 to close at Rs60.1 to be the major losers of the week.

Moreover, IGI Insurance increased by Rs4.28 to close at Rs96.81 and New Jubilee Insurance by Rs0.4 to close at Rs58.81 to be the major gainers of the week.

KBC may exit China fund JV SHANGHAI: Belgian financial group KBC plans to exit its loss-making China fund venture, part of the company's strategy to scale back its global presence after being hit by the financial crisis, two people with direct knowledge of the plans told Reuters.

KBC has been actively looking for buyers for its 49 per cent stake in Shanghai-based KBC Goldstate Fund Management Co, said the sources, who declined to be identified because they are not authorised to speak to the media.

KBC, which received 7 billion euros ($9.5 billion) in government aid during the financial crisis, adopted a new strategy in 2009 of significantly reducing its business outside its home markets in Belgium as well as Central and Eastern Europe.

The banking and insurance group is exiting the project finance business in several regions around the world including Asia, Basis Point, a unit of Thomson Reuters, reported in January. KBC also closed a representative office in Shanghai in 2009.

KBC's decision to exit KBC Goldstate was also fuelled by the lacklustre performance of the four-year-old venture with China's Goldstate Securities Co. Founded in 2006, KBC Goldstate's assets under management slumped 60 per cent last year to 1.3 billion yuan, making it the second-smallest among China's 60 mutual fund managers.

A KBC spokeswoman declined to comment, while a spokesman at KBC Goldstate said he was not aware of the plan.

Some analysts said the tiny market share and consecutive years of losses would make KBC Goldstate's stake a hard sell, even as many foreign investors are seeking to enter China's $364 billion mutual fund industry. -Reuters

China bars insurers from providing debt guarantees BEIJING: The Chinese insurance regulator has banned insurance firms from providing guarantees for debt incurred by other companies, in a bid to reduce operational risks.

The China Insurance Regulatory Commission (CIRC) said that all insurers must submit reports on whether they have engaged in such practices by the end of March, according to new rules published on its website (www.circ.gov.cn) last week.

Insurance firms that have provided guarantees for other companies' debts must terminate the arrangements before June 30, 2011, it added.

The move aims to curb operational risks and close the loopholes for fund embezzlement following a rise in business irregularities related to debt guarantees, analysts said.

The agency said the new rule does not apply to guarantees for export credit insurance companies.

CIRC's chairman Wu Dingfu said earlier that insurance firms must strengthen management of their insurance funds to ensure that their capital will not be misappropriated.-Reuters

Lindsey, Elisabeth and Maria celebrate on podium during winner's presentation at Alpine Ski World Championships

9

Monday, February 14, 2011

Rooney stunner seals derby win for Utd LONDON: Wayne Rooney produced a moment of matchwinning magic as his stunning overhead kick gave Manchester United a crucial 21 victory over Manchester City in Saturday's derby at Old Trafford.

United had seen Nani's firsthalf opener cancelled out after the break when David Silva deflected in an Edin Dzeko shot, but Rooney's spectacular late strike ensured Sir Alex Ferguson's side hold the bragging rights over their bitter rivals.

Rooney's sixth goal of the season lifted league leaders United seven points clear of second placed Arsenal, who host Wolves later on Saturday, and eight ahead of third placed City.

Ferguson saluted Rooney's winner as the best he had ever seen at Old Trafford.

"It was stunning," he said.

"We've had some fantastic goals here - Rooney hit a volley against Newcastle some years ago - but in terms of execution you'll never see that.

"Nani's opener was an unbelievable goal, but nobody in their right sense will even talk about it. All the talk will be about that winning goal.

Unbelievable."

Silva had a golden chance to put City ahead in the fourth minute after a one-two with Carlos Tevez, but the Spain winger poked wide from closerange.

City controlled possession for long spells in the first half without turning their dominance into further opportunities, although they had a penalty appeal for handball by Patrice Evra rejected by referee Andre Marriner.

Ferguson's side made them pay in the 41st minute as Nani opened the scoring in sublime fashion.

The move began in direct fashion as Rooney flicked on Edwin van der Sar's huge punt to Ryan Giggs. The Welsh midfielder played a superb pass through to Nani, who produced a fine first touch before surging clear of Pablo Zabaleta to shoot low beyond Joe Hart.

City levelled in the 65th minute thanks to a moment of extreme good fortune.-Agencies

Pak-Malaysia football clash at Shah Alam Stadium soon LAHORE: Shah Alam Stadium, a multi-purpose stadium located in Shah Alam, will host first leg of Pakistan-Malaysia clash on 23 February 2011 (8.45 PM Kick Off) in Olympic football Asian qualifying tournament. It replaced Kuala Lumpur Football Association (KLFA) Stadium in Cheras.

It will be second time the capacity 69,372 will be used for Pakistan's match after 14th Asian U16 Football Championship two years ago when Muhammad Habibcoached Pakistan faced Uzbekistan, Kuwait, Saudi Arabia and Afghanistan.

Selangor State's largest Alam Stadium, which consists of huge six level semienclosed spaces, is also the home stadium for Selangor FA, champion of Astro Malaysia Super League.

It will be seventh meeting between the two sides and first-ever meeting between the two countries at age-limit Olympic level.-Online

Afridi says all rivals wary of Pakistan KARACHI: Captain Shahid Afridi has said that no team can underestimate Pakistan in the upcoming Cricket World Cup. “We are most dangerous side with mix of youth and experience that has drawn parallels, however tenuous, with the side that won the tournament almost 19 years ago,” he told reporters in his opening press conference in Mirpur (Bangladesh) on Saturday, reports cricinfo.com.

“We all know how important the competition is for my country. This is a message for the other teams: No one can underestimate us. “And when I said dangerous, I meant don’t underestimate the Pakistan team,” he said. “We are with a very good bunch of youngsters and experienced players. It is good to see Kamran Akmal back in the team, Misbah ulHaq too is in good form and so is Younis Khan,” Afridi commented.

“We also have two genuine spinners and a fast bowler like Shoaib Akhtar. “They are high on confidence and team spirit.

“Pitches around the world are very similar. I think as we performed well in New Zealand conditions, we’ll feel more confident on Asian tracks,” Pakistan skipper playing his third World Cup. “We’ve gone through a very tough situation.

As a captain I’m very happy because we were trying to rebuild the team and boost its morale. The team has gelled up,” he said.

“We keep these (controversial) issues out of the team and we are focused on the cricket.

We played well in New Zealand and the boys are united and they feel hungry,” he maintained.

Afridi also offered praise for the job done by the team’s coach, Waqar Younis, and manager, Intikhab Alam, in keeping everyone together.-Agencies

India beat Aussie in Warm-uper BANGALORE: India beat Australia in warm up match.

Brett Lee grabbed three wickets in a superb display of fast bowling to help Australia restrict hosts India to a modest 214 in a World Cup warm-up match on Sunday.

Lee finished with 3/35 off 10 impressive overs as India were dismissed in the 45th over after electing to bat in a day-night match before a sizeable crowd at the Chinnaswamy Stadium in Bangalore.

The paceman had Suresh Raina (12) caught behind for his first victim and then bowled Harbhajan Singh and

Piyush Chawla to prove he is bang in form for the World Cup, which starts February 19.

Lee was backed by John Hastings (2/24). Australia's only concern was 25 runs they conceded in wides, with offsong paceman Mitchell Johnson giving away 10.

Opener Virender Sehwag gave a good account of himself in India's below-par batting performance, top-scoring with a 56-ball 54 with one six and eight fours.

He fell soon after reaching his half-century with a six over long-off, inside-edging offspinner Jason Krejza's delivery on to his stumps. -Agencies

Roland Garros to be venue for French Open

PARIS: Tradition won the day on Sunday when the French tennis federation decided to keep the French Open at a renovated Roland Garros and rejected plans to move the tournament to the Paris suburbs from 2016.

A federation statement said delegates had opted for the "enlargement and modernisation of the historic site at Porte d' Auteuil for the new Roland Garros".

Versailles, Gonesse and a site in Marne-la-Vallee close to Disneyland Paris had bid to take the only clay court grand slam out of the French capital and offer more space.

However, in a federation ballot on Sunday, Gonesse lost in the first round, Versailles in the second with Paris then taking 70 percent of the vote in the final round against Marnela-Vallee.

Although, the ageing and cramped Roland Garros in the west of Paris near the Bois de Boulogne will now be redeveloped it is still likely to be the smallest grand slam venue.-Agencies

Clijsters regains world top spot

PARIS: Kim Clijsters became the first mother to be crowned world number one on Friday when she battled back from 3-0 down to defeat Australia’s Jelena Dokic 6-3, 6-0 in the Paris Open quarter-finals. The 27-year-old reigning US and Australian Open champion has now reached the top spot for the fourth time in her career.

The Belgian first hit the heights in 2003, when she was number one for 12 weeks over two separate spells, and then again in 2006, spending seven weeks at the head of the rankings. Clijsters, who was also US Open champion in 2005 and 2009, will officially knock Denmark’s Caroline Wozniacki, who has yet to win a Grand Slam title, from the number one slot when the new WTA rankings are released on Monday.

Clijsters’s return to the top will bring a little respect back to the position which has lost some of its lustre in recent years. The retirements of Grand Slam winners Martina Hingis, Lindsay Davenport, Amelie KARACHI: Group photo on the occasion of Minority Mauresmo and Justine Henin Netball Tournament shows Deputy Director Sports Shehzad have damaged the top ranking’s Pervaiz, as Chief Guest, Eren Parera, Julian Parera, FR credibility while Serena and Caris, Mudasir Arain, Ejazul Haq, Naheed with Venus Williams are playing less winner team Trinity Girls College.-Staff Photo and less.-Reuters

BANGALORE: Australia's Doug Bollinger, center, appeals unsuccessfully for the wicket of India's Virat Kohli, left, as his teammate Virender Sehwag, right, walks past during a warm up match of International Cricket Council (ICC) Cricket World Cup.-Reuters

PCB denies appeal against Aamer’s ban KARACHI: The Pakistan Cricket Board (PCB) has dismissed reports that it had filed any appeal on behalf of banned Pakistani pacer Mohammad Aamer with the International Cricket Council.

"We have filed no formal appeal as such. Yes we have written to the ICC about the case in light of the observations made by the ICC anti-corruption tribunal regarding the existing anti-corruption code of conduct laws under which

Salman Butt, Mohammad Asif and Aamer have been penalised," a official said.

The official made it clear that the right to appeal against their bans only rested with the three players not with the board.

"The PCB has nothing to do with the due process of law that will follow after the ICC tribunal banned them," he said.

He also said that the PCB had simply asked the ICC to have the observations of the ICC anti-corruption tribunal regard-

ing the existing code of conduct laws discussed at the executive board meeting due to be held from February 14.

"Like the PCB chairman has already said that the board was trying to get the ICC to review the five-year ban on 18-year Aamer in light of the observations of the ICC tribunal that too because of his age but knew their was a one in a million chance of the ICC executive board agreeing to this," the official said.-Agencies

Akthar says squad can beat ‘suspensions blow’ DHAKA: Pakistan's experienced Shoaib Akthar on Sunday brushed aside the suspension of two of his partners in the Pakistan pace attack, predicting they still had more than enough variety to succeed in the World Cup. Mohammad Asif and Mohammad Amir, were banned for at least five years along with batsman Salman Butt earlier this month after they were found guilty of cor-

ruption by an International Cricket Council (ICC) tribunal in Doha.

"Obviously, we are unfortunate that they are not there. But still whatever the pace attack we have is good enough to win matches," Shoaib told a news conference in Dhaka ahead of next Saturday's World Cup opening in the sub-continent.

He said Umar Gul, Wahab Riaz and himself along with Junaid Khan could still restrict

any side in the world.

"We have the best combination for the new ball and reverse with the older. I think we can manage to put it right."

Shoaib said the strength of his team lay in swing bowling, especially reverse swing with the more battered, older ball.

The 35-year old pace bowler hinted this was going to be his last World Cupand he was ready to take whatever came his way.-Online

India’s Kohli claims a “cricketory” change BANGALORE: Virat Kohli, who is expected to play a vital role in India`s middleorder in the upcoming World Cup, said after realising his importance in the team he has become a more matured batsman and is confident of his good showing in the ICC`s showpiece event, starting February 19.

The 22-year-old Delhi lad said he has worked a lot on the mental aspect of the game and is more focused now as compared to when he first came into limelight in the 2008 Under-19 World Cup in Malaysia, where he lead India to the title.

"I have made a few changes in my game in the recent past.

I am just trying not to commit unnecessary mistakes, learn from my mistakes. I am trying to use most of the oppor-

tunity that is coming my way.

I am focusing on applying myself and play long and controlled innings, avoid playing rash shots and work on mistakes," Kohli said during an open media session.

"When I got out playing a rash shot in the past people told me you could have played a better shot and you will learn with time. I learnt how to be mentally tough, not to be bogged down by the opposition. I feel much more focused. I am confident of my abilities," he added.

The right-handed batsman also said the re-invented calm and focused attitude on the field has brought about changes in him as a person.

"If you bring changes to your cricket it reflects on your individuality."

The cash-rich Indian

Premier League (IPL) brought about a lot of instant fame and money for the young Indian cricketers and Kohli said it is important to remain grounded and in the surroundings of senior pros, who have already tasted the same.

"It is important to remain focused. The moment you start to think I have had enough practice and I don`t need any more you will be lost. It is important to be eager to practice every day and be involved with the game. Be there with the people who has been there for long and have handled this situation before," he said.

With the World Cup being held in the sub-continent, expectations are high on the Mahendra Singh Dhoni-led side to break the 28-year-old

title jinx and Kohli said he is feeling pressure of expectations of millions of cricketloving Indian fans.

"I was feeling lot of pressure before the camp started but after arriving in Bangalore I am more relaxed.

I am just focusing on my training. Just being around the team and teammates calmed me down," he said.

Kohli already has a World Cup trophy under his belt but the youngster said his Under19 experience will be of little help during the upcoming cricketing extravaganza, which will commence in Dhaka.

"It (the World Cup) is a different level altogether. It is superior and for a cricketer there is nothing as big as compared to the World Cup. I don`t think my Under-19

World Cup experience will help in any way. But I am more confident going into the mega-event," he said.

Kohli was one-of the star performers for India with the bat in the ODI series in South Africa and he said the experience will be of great help to him in the World Cup. "I had some things in mind (in South Africa). I thought we would have to play as a team going into the World Cup. It was a really good experience to play and score runs in different conditions against different and world class bowlers," he said.

"I didn`t have added pressure. I was just looking to enjoy."

There is huge hype around Sachin Tendulkar, who in all probability will play his swansong World Cup but

Kohli said the upcoming tournament is of equal importance for the entire country nation as it is for the batting maestro.

"Definitely, it matters for him (Tendulkar) but it also matters for the country as well as the team."

An agile Kohli, who is also an important cog in India`s fielding department and usually fields in the close position inside the circle, when asked if he ever felt nervous while fielding, he said: "We just look to enjoy every session. I try to bring out my best while fielding without taking any pressure."

"The kind of position I field in is all about anticipation. If you are nervous you can`t anticipate. It`s more about being relaxed," said Kohli.Online

International

10

Monday, February 14, 2011

BAHRAIN PROTESTS TO ADD TO PRESSURE ON GOVT * KING TRIES TO APPEASE OPPOSITION AFTER EGYPT, TUNISIA * FIRST PROTESTS PLANNED FOR FEB 14 * MAIN SHI'ITE OPPOSITION GROUP HOLDING ITS CARDS

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nti-government protests by Bahrain's marginalised Shi'ite majority on Monday are not likely to rival the Egyptian revolt, but will add to the pressure on the king to make more concessions to his people.

Gulf states are not expected to face full-scale revolts thanks to a golden bargain under which their rulers trade a share of their oil wealth for political quiescence, but Bahrain is among the most vulnerable to popular pressure.

"There's a deep sense of frustration among large segments of Bahraini society," said Toby Jones, professor of Middle Eastern studies at U.S.-based Rutgers University.

"If there was one place in the Gulf that I was going to predict that there would be something similar (to Egypt), it would be Bahrain," he said.

Bahrain is a small oil producer with a majority Shi'ite population that has long complained of discrimination by the ruling Sunni alKhalifa family, well before popular uprisings in Tunisia and Egypt emboldened activists across the region.

Across their island country,

Bahrainis sounded car horns and waved Egyptian flags on Friday night when news broke that Egyptian President Hosni Mubarak had stepped down.

The first protests in Bahrain since the events in Egypt and Tunisia unfolded are expected to take place on Monday.

King Hamad bin Isa Al Khalifa, trying to defuse the tension, said he would give 1,000 dinars ($2,650) to each local family, and the government has indicated that it may free minors arrested under a security crackdown last year.

"I think it is no coincidence that the government has chosen this time to announce new grants to all Bahraini families," said Jane Kinninmont, analyst at the Economist Intelligence Unit, who expected Mubarak's fall to strengthen protesters in Bahrain.

Diplomats said the early concessions could blunt the scale of the protest.

SECTARIAN DIVIDE Non-OPEC Bahrain, which unlike its Gulf Arab peers has little spare cash to throw at social problems, said last week it would spend an extra $417 million on social items, including food subsidies -- a reversal of attempts to pre-

pare the public for cuts in subsidies.

Shadi Hamid, analyst at the Brookings Centre in Doha, said protests in Bahrain were unlikely to draw support from across sectarian lines, and this could limit the size of demonstrations in a country with just over half a million Bahrainis.

"Not everyone in Bahrain agrees that democracy is a good thing because that will put the Sunni minority's power at risk," he said.

Villages in Bahrain regularly see night-time clashes between security forces and Shi'ite youths erecting barricades and attacking police with fire bombs.

The government launched a security crackdown last August against some Shi'ite groups to stop this, but it has loosened its grip since the revolts in Egypt and Tunisia.

The trial of 25 Shi'ite men arrested in the crackdown and charged with inciting violence to topple the government has remained the main bone of contention. The trial is stalled after a series of lawyers resigned, and observers are wondering whether the king might pardon some of the detainees.

Bahrain, home to the U.S. Navy's Fifth Fleet, is one of a string of Sunni-led U.S.

allies in the region that Washington depends on to curtail the regional influence of Shi'ite Iran.

Top oil exporter Saudi Arabia, which has a sizeable Shi'ite population in its eastern provinces adjacent to Bahrain, is worried it might lose allies to counter Iran.

Bahrain's main Shi'ite opposition group, Wefaq, will play a decisive role in Monday's protests as it could quickly mobilise tens of thousands of supporters and send them into the streets.

But observers and analysts say Wefaq is a cautious group that will not join street

protests on a large scale but will wait to see how many more concessions the government will make.

The group has taken part in parliamentary elections introduced as part of political reforms launched by the king in the early 2000s to draw Shi'ites into the political sys-

tem and quell the large-scale street protests of the 1990s.

"Wefaq is fundamentally constrained by the position it put itself in, it's decided to work within the system, it's decided not to provoke the Sunni regime so they're stuck in that paradigm right now," Hamid said.-Reuters

Egypt economy faces rocky road after protests * Sentiment on army's side for now, but big challenges loom * Growth may fall to as low as 1-2 per cent - analysts * Loose fiscal policy, weak currency to fuel inflation

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gypt's military council faces a daunting challenge to stabilise the economy after 18 days of protests which may cut growth this year in half and have left regulators nervous about the reopening of its capital markets.

In the short-run, analysts hope that there will be an orderly transition to democracy and that may halt outflows of capital which have reached as much as $1 billion per day at the height of the revolt.

Many investors are also optimistic about the broader changes to business and policy that may follow under a freely-elected government but there is little prospect of a step change in the near term.

"In terms of the economy, Egypt has been run by the same technocrats for the last

30 years," said Tim Ash, head of emerging markets research at RBS. "I don't think you're going to see too much of a change."

"The establishment are still around. Their real agenda is no change until September," he said.

Egypt's economy was worth an estimated $217 billion last year, half of oil giant Saudi Arabia, and relies on foreign investments, tourism and fees from the Suez Canal A month before the protests erupted on Jan. 25, analysts polled by Reuters had expected growth of 5.4 per cent in the fiscal year ending in June, second in the Gulf Arab region only to Qatar. The government had forecast 6 per cent expansion.

But while banks and some shops are reopening, tourists

-- who account for between 5 and 11 per cent of economic output -- are still shunning the popular holiday hub, making the growth predictions look optimistic.

Said Hirsch, Middle East economist at Capital Economics, said the main priority would be bringing society back to normal and get people working again.

"The military's role will be to stabilise the economic situation," he said.

MARKET NERVES Officials on Saturday pushed back the opening of the stock market for a second time, from Sunday to next Wednesday, and the Egyptian pound had to be propped up by intervention by the central bank last week.

At the peak of the unrest, some analysts speculated the bank would have to make an

emergency rise in interest rates to aid the pound.

Optimism over Hosni Mubarek's departure -which has helped emerging markets globally -- make that move less likely, but the currency's weakness also adds to the likelihood of higher inflation and an eventual rise in rates.

Ratings agencies also downgraded Egypt's sovereign ratings by one notch as protests intensified, citing possible damage to already weak state finances.

"We believe the central bank will hike rates by 100 basis points in an emergency meeting this month as inflation is likely to surge on the back of a weaker pound," said Dina Ahmad, CEEMEA strategist at BNP Paribas.

Lower private consumption, which accounts for around 70 per cent of GDP, a

drop in foreign investments and higher unemployment are also expected to hurt economic performance.

Although Mubarak's promise of a double-digit salary raise for public sector workers will now likely be scrapped, the transitional government is likely to keep up spending.

Lower taxes, higher subsidies and pressures to give more money to unemployed may also undermine the crude oil-importer's fiscal health, with the budget gap likely to balloon towards 10 per cent of GDP this year, according to BNP Paribas.

"First we need to see a return to normality," said Lars Christensen, senior emerging markets analyst at Danske Bank. "Then I think the recovery could be relatively short."

SPENDING VS INFLA-

TION Long-term, the outlook is cloudier.

If the economy worsens, any resulting social instability could become a graver geopolitical concern and to prevent that, Egypt may also be well-positions to receive a boost in foreign aid.

"I think it's the case that the United States and the Gulf (countries) could bring more aid to Egypt," said Hirsch. "A lot of money could come from the Gulf.

Gulf Arab rulers, as well as the United States, see Egypt as a key ally to counter Iran's growing influence in the region, and will want to keep the country economically healthy and stable.

Among Gulf countries, Yemen, Bahrain and Kuwait have already offered cash or concessions, eyeing similar young populations and sim-

mering discontent.

Beyond that, the prospect of a freer and more transparent economy under new regime could draw substantial inflows of investment looking to grab market share in the country of 80 million.

"When you have less than, say, 10 per cent of the population with checking accounts, there is potential for growth," said Karim Baghdady, managing director of Egyptian-based investment bank Beltone in New York.

"When you have a gray economy that is almost as large as the official GDP, if you are able to institutionalise that economy, then people will start securitising their debts, able to borrow more, buy more. So there is a big domino effect." Reuters

Microsoft's Nokia deal leaves investors cold M

icrosoft Corp has yet to persuade investors that a deal to put its Windows software on Nokia Corp phones is not just two losers hoping to combine into one winner.

The financial benefits for Microsoft are not clear. By the time new phones born out of their alliance hit the market, both may have ceded more market share to Apple Inc's iPhone and Google Inc's Android system.

And some point out the risk that Nokia's full-scale endorsement may alienate rival phone makers such as Samsung Electronics Co Ltd and LG Electronics Inc, now supporters of Microsoft's fledgling Phone 7 platform.

"They do have to actually put some phones out there in the market and, as best I can tell, that's easily six months down

the road," said Al Hilwa, an analyst at tech research firm IDC. "The Android market is moving really fast. They've got their work cut out."

The deal is a "an opportunity, rather than a slam-dunk," he added. "We'll have to wait and see how this works out."

Most industry-watchers agree Microsoft's tie-up is an effective way for the software company to get its operating system on some 30 million phones a quarter without a costly and disruptive acquisition, putting it back on the smartphone playing field.

But its shares fell as much as 1.6 per cent as investors worried how it would work in practice.

"It's a great arrangement from Microsoft's standpoint," said Sid Parakh, an analyst at McAdams Wright Ragen. "But it's very hard to model these

things out, given we don't know what the financial terms are, we don't know what the timelines are, and we don't know what kind of monetisation to expect."

Microsoft and Nokia are hammering out the financial details of their "broad strategic partnership" to make Windows Phone 7 the primary operating system for Nokia phones.

But broadly, Nokia will pay royalties for licensing the phone software and in return Microsoft will invest in marketing and developing the phones, but it isn't clear which will be the greater sum.

BATTLE OF ECOSYSTEMS Analysts said the licensing agreement is complicated by the fact some of Nokia's technology will be included in the phones, such as mapping and navigation.

The Finnish

phone-maker may also get a cut of the revenue Microsoft gets from putting its Bing search engine on the devices.

That alone could be worth $1.25 billion a year to Microsoft, estimates Richard Williams at Cross Research.

"What's really going to prove important is whether they get enough of a strong ecosystem out there in terms of developers, applications, advertising monetisation, relationships with carriers," Hilwa said.

Nokia failed to generate developer excitement with its Symbian system and Microsoft is only just beginning to make its mark on the burgeoning app markets, where users can download a variety of useful tools and games to their devices. Microsoft has only about 8,000 apps for Windows Phone 7, compared with some 15,000 for Research in Motion

Ltd's BlackBerry, more than 100,000 for Google's Android system and more than 300,000 for Apple's iOS on iPhones and iPads.

"Microsoft is still in development mode really," said Avi Greengart, research director for consumer devices at Current Analysis. "There are core features that aren't there yet, things as simple as cut and paste."

Analysts are hoping for more details on Microsoft's technical plans for Windows Phone 7 at the annual Mobile World Congress in Barcelona next week. There are questions about how much Microsoft will allow Nokia to customise its software and whether its agreement with Nokia will discourage handset makers such as Samsung Electronics, LG and HTC Corp -- currently the chief supporters of Windows

Phone 7 in the United States.

That is a risk Microsoft is willing to take, said NPD Group's consumer electronics and wireless industry analyst Ross Rubin, given it gets a large, dedicated phone designer committed primarily to its software rather than Android.

"By focusing primarily on Windows Phone 7, Nokia will be creating more competitive handsets for that operating system, as opposed to other manufacturers that are focusing primarily on Android," said Rubin. Microsoft only had a 4.2 per cent share of the global smartphone market last year, according to research firm Gartner, trailing Apple with 15.7 per cent, Research in Motion with 16 per cent and Google's Android with 22.7 per cent. Despite steadily losing share, Nokia's Symbian was still the leader last year,

with 37.6 per cent of the smartphone market. But most of those were lower-end devices compared with the likes of the iPhone. The question now is how much, and how fast, Microsoft can capitalise on that market share.

"Nokia has a tremendous brand presence, not in North America, but pretty much everywhere else in the world, and a reputation for hardware quality that's second to none," said Greengart. "But Microsoft and Nokia are going to have tremendous execution risk."

The coming together of two slow-moving titans may not ultimately pay off, warned Pierre Ferragu, an analyst at Sanford C. Bernstein in London.

"A partnership with another heavy giant doesn't sound like the right remedy," he added. Reuters

Yemeni protesters march on palace

CAIRO: An Egyptian policeman (C) is hugged by two opposition supporters outside the Interior Ministry near Tahrir Square. Thousands of protesters streamed back into Cairo's Tahrir Square on Sunday after the army tried to disperse them and gunfire was heard near the Interior Ministry where police were demonstrating over wages.-Reuters

Egyptian army corrals protesters to reopen Tahrir CAIRO: Hundreds of Egyptian soldiers shoved prodemocracy protesters aside to force a path for traffic to start flowing through central Cairo's Tahrir Square on Sunday for the first time in more than two weeks.

Protesters chanted "peacefully, peacefully" as the soldiers and military police in red berets moved in to disperse them. Scuffles broke out and some soldiers lashed out with sticks.

The military police chief told protesters to clear tents from the square and not to disrupt traffic.

"We do not want any protesters to sit in the square after today," Mohamed Ibrahim Moustafa Ali, the head of military police, told protesters and reporters as soldiers removed tents from the square.

The army has said it respects the demands of protesters, whose mass action drove Hosni Mubarak from power. It has also called on them to go home and let normal life resume.

Protests erupted on Jan. 25 and traffic stopped flowing through Tahrir after Jan. 28.

The square became the epicentre of nationwide demonstrations, with many protesters camping there.

"I will not leave the square.

Over my dead body. I trust the army but I don't trust those controlling the army behind the scenes," Mohamed Salah, 27, a protester who was refusing to take down his tent in the square.

Faten Hassan, another protester, said it was time to let the army do its job. "If they fail to fulfil our demands, we know the way back to the square. Egyptians know the road to any uprising they wish to hold again," she said.

The early morning violence did not last long, but the army action, backed by dozens of military police, split demonstrators who had previously controlled the square into smaller groups.

"In the square, in the square, we demand our rights in the square," some chanted as soldiers corralled the crowd.

Although Mubarak's resignation on Friday met the protesters' main demand, many said they planned to stay in the square to ensure the military council now in charge of Egypt made way for civilian rule and democracy as it had promised.

Protesters demand the abolition of emergency law that has been used to stifle dissent for three decades, the release of all political prisoners, and free and fair elections.

11

International & Continuation

Monday, February 14, 2011

"The army is the backbone of Egypt. The solution is not to remove us from the square.

They must respond to our demands," said a protester over loudspeakers.

Atteya Mohamed, 32, a lawyer and a member of a "people's defence committee", said the army's action was unacceptable.

"The exact tactics used by police we see the army using on protesters. We refuse this and demand our friends are released."

Protesters said soldiers had detained about 50 people since Saturday night. The army had no immediate comment.

Troops were ordered on to the streets on Jan. 28 after police fought street battles to try to contain protests but lost control. The army has taken a largely neutral role, but has detained some protesters and journalists, often briefly.

"There is no enmity between the people and armed forces ...

We ask you not to attack our sons. This is not the (behaviour) of the armed forces. This is a peaceful protest," one protester said on loudspeakers.

"We demand that the armed forces release all our sons that have been arrested in Tahrir."

Some passers-by felt the time for protests was over.Reuters

SANAA: Anti-government protesters clashed with police trying to prevent them from marching towards Yemen's presidential palace in Sanaa on Sunday, witnesses said.

Shortly before the clashes, the opposition agreed to enter talks with President Ali Abdullah Saleh, who is keen to avert an Egypt-style revolt in the country, a U.S. ally against al Qaeda.

"The Yemeni people want the fall of the regime," protesters shouted during the demonstration attended by about 1,000 people, before dozens broke off to march to the palace. "A Yemeni revolution after the Egyptian revolution."

Sporadic anti-government protests have gathered momentum in Yemen. Earlier this month, tens of thousands took part in an opposition-led "Day of Rage" to demand a change of government, inspired by popular protests in Tunisia and Egypt.

Pro- and anti-government protesters have clashed in recent days.

Opposition officials said 10 protesters were detained in Sanaa and 120 were taken into custody overnight in the city of Taiz, where authorities broke up a demonstration on Saturday.

Four people were hurt in the Sanaa clashes, in which police hit protesters with batons and demonstrators threw rocks at police, witnesses said.

Saleh, in power for more than three decades and concerned about unrest in some parts of the Arab world, has said he will step down in 2013 and pledged his son will not take over the reins of government. He invited the opposition for talks.

"The opposition does not reject what came in the invitation by the president and is ready to sign an agreement in no more than a week," said former Foreign Minister Mohammed Basindwa, now an opposition politician, adding that the talks should include Western or Gulf observers.

"Past experience is what has spurred us to request that representatives of the Friends of Yemen (donor countries) be in observance," he said.

Instability in Yemen would present serious political and security risks for Gulf states.

The United States relies heavily on Saleh to help combat al Qaeda's Yemen-based arm, which also carries out attacks in neighbouring Saudi Arabia.Reuters

Cameron defends faltering "Big Society" plan LONDON: Prime Minister David Cameron will relaunch his faltering "Big Society" programme after a series of damaging blows to the plan for volunteers to take over local services, Sunday's Observer said.

Cameron has identified himself closely with the flagship policy, which builds on his Conservative party's belief in smaller government by devolving power to local people.

But Cameron's 8-month-old coalition with the smaller Liberal Democrat party has struggled to explain the strategy to the public, undermining his authority and exposing him to ridicule.

People still have little understanding of the policy, with half believing it is a "gimmick" and

40 percent saying it is a cover for spending cuts, according to a ComRes opinion survey for the Sunday Mirror and Independent on Sunday.

Cameron and his ministers will spend the coming week defending the programme and detailing 100 million pounds of funding to help charities and volunteer groups compete for government contracts for the first time, the Observer said.

Cameron will also announce in the coming weeks plans for a "Big Society university," backed by a multi-million pound endowment, to train community workers.

"The big society is about changing the way our country is run... This is not another government initiative -- it's about

UK calls for int’l action on Mubarak assets LONDON: A British government minister said on Sunday there should be an international approach to dealing with the overseas assets of deposed Egyptian president Hosni Mubarak and his family.

Britain's Serious Fraud Office (SFO), which investigates financial crime, has launched a hunt for cash and assets linked to Mubarak, the Sunday Times reported, without citing sources.

So far only Switzerland has announced a freeze on assets that might belong to Mubarak, who stood down on Friday after 30 years of rule.

British business minister Vince Cable said countries need to work together on Mubarak's assets, reported to be worth at least millions of dollars and held secretly around the world.

Asked if Britain would follow Switzerland's lead, Cable told BBC television: "I was not aware that he had enormous assets here, but there clearly needs to be a concerted international action on this.

"There is no point one gov-

ernment acting in isolation, but certainly we need to look at it.It depends also whether his funds are illegally or improperly obtained," Cable added.

Britain could lock down any assets linked to Mubarak at the request of the European Union or United Nations, or if asked directly by Egypt, a government official said.

Egypt's ambassador to London, Hatem Seif el Nasr, said he had no information about any of Mubarak's assets. "Truly, about the money I have absolutely no knowledge," he told BBC TV. Switzerland has also frozen assets belonging to Tunisia's former president Zine alAbidine Ben Ali, who was ousted by a popular uprising last month. SFO head Richard Alderman, asked about reports that assets were secretly held in London by Mubarak and Ben Ali's families, told the Sunday Times: "The public would expect us to be looking for some of this money if we became aware of it, and to try to repatriate it for the benefit of the people of these countries."-Reuters

giving you the initiative to take control of your life and work with those around you to improve things," Cameron wrote in the Observer.

"People have the compassion, flexibility and local knowledge to help their neighbours and communities. Our approach will not merely enable them to build a stronger society, it will actively help them to do so," he said.

Elisabeth Hoodless, head of Britain's largest volunteering charity, Community Service Volunteers, said last week the Big Society scheme was being undermined by the coalition's plan to cut more than 80 billion pounds of state spending over four years to tackle a record budget deficit.-Reuters

Sri Lanka flood damage $600 mln COLOMBO: The damage from monsoon flooding in Sri Lanka over the last six weeks is estimated at $600 million, a government minister said Sunday amid a slow response to an international appeal for help. Disaster Management Minister Mahinda Amaraweera said the government would spend 33 billion rupees ($300 million) to carry out urgent repairs to 50,000 homes damaged by the flooding.

"The total flood damage bill is estimated at twice as much," Amaraweera told AFP. "The rice crop damage alone is about 13 billion rupees."

The unusually heavy monsoon rains left at least 64 people dead and drove more than one million people out of their homes.

Most of them have returned as rains subsided, but 130,000 people still remain in state-run welfare camps, the disaster management centre said Sunday.

The United Nations issued an appeal for $51 million to address immediate needs after the first round of flooding, but received only about 20 percent.

It plans a fresh appeal after the second wave of floods hit the northern, central and eastern parts of the island.-APP

CONTINUATION No #1

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and December were heavily rigged by the ruling party, virtually shutting out opposition representation. The caretaker Cabinet, which was appointed by Mubarak shortly after the pro-democracy protests began on Jan. 25, will remain in place until a new Cabinet is formed — a step that is not expected to happen until after elections. The ruling military council reiterated that it would abide by all of Egypt's international treaties agreed in the Mubarak era, most importantly the peace treaty with Israel. The caretaker government met for the first time since Mubarak stepped down. "Our concern now in the Cabinet is security, to bring security back to the Egyptian citizen," Prime Minister Ahmed Shafiq told a news conference after the meeting. "In a country like Egypt, with a pharaonic legacy, having no president and no head of state is not easy," said Amr el-Shobaky, a member of the Committee of Wise Men — a self-appointed group of prominent figures who are allied with the protesters.

No #2

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This year, Minister for Religious Affairs Syed Khurshid Ahmed Shah would supervise the entire Hajj operation to ensure transparent and smooth conduct of the pilgrimage. No application form without having number of machine readable passport (MRP) would be entertained, advising the intending pilgrims to get their MRPs ready at the earliest to avoid any inconvenience. In 2010, the bank branches were directed to accept requests along with photocopies of the receipts from those aspirants who had applied for MRPs due to low turn out of the applicants.-APP

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There were thousands of troops in Afghanistan and they must stop militants from fleeing into the Pakistani territory. Pakistan has more than 800 mile-long-border with Afghanistan and it was difficult to seal it. After all, he pointed out, the United States, with all its resources and infrastructure, had not able to establish much control over its border with Mexico.

Earlier, the Afghan Ambassador also spoke of Afghanistan's excellent relations with Pakistan's civilian government, led by President Asif Ali Zardari. Ambassador Tanin said his government stood for national reconciliation provided the opposition groups renounce violence and agree to respect the country's constitution.

"We want to end the war in Afghanistan," he told the gathering.

Ambassador Finn, who was posted to Afghanistan soon after the collapse of the Taliban government, noted the resurgence of the militant group. He said that necessary attention was not given to improving the country's governance, rebuilding infrastructure and

strengthening security forces, the factors that have led to the pre- nies which bought $89.46 million of shares in the local bourse against the selling of $94.21 million, thus turning the net selling worth of $4.74 million. Similarly, banks offloaded shares worth of $2.10 million in the market during the last week. vailing difficult situation.-APP

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Three trials are still under proceedings, report added. Report also included that NAB is currently inquiring about 578 cases.

As per the details, 15 of them were completed, seven were called off whereas against 13 accused, go ahead was signaled for formal investigations, which include Mir Baz Khaitran, former Federal Secretary Petroleum and Natural Resources, Kamran Lashari, as well as former IG Frontier Core, Malik Naveed. Progress report issued by NAB also told during the same period, NAB completed investigations on 30 cases whereby 15 were government employees, nine businessmen and six miscellaneous people. Investigations pertaining to three other were voided.-Agencies

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Anwar Lutfullah - SEVP/ Group Head Consumer Banking, Summit Bank Limited and Asghar Rangoonwala - Chief Executive Officer, ABB Recreations (Pvt) Limited signed the agreement on behalf of their respective organization in a simple but impressive ceremony held at The Royal Rodale Club. The ceremony was also attended by senior management from both the organizations.-Online

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Media reports had stated that a recently-released declaration by some countries said most of UN member nations supported enlarging the council with new permanent and non-permanent members, and insisted tangible results be achieved in this regard during the Current Session of the UN General Assembly. Ma said China held that UN member nations should seek for a package of solutions for the reform, on the basis of broad and democratic consultation among member nations to accommodate interests and concerns of all parties. He said though some positive progress had been made since inter-government negotiations regarding the reform of the UN Security Council were launched, there were still serious differences within all parties over certain important issues about the reform.

China advocated that the more differences the member countries had on the reform, the more necessary for UN member nations to enhance dialogue and consultation, he said. -APP

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provide any satisfactory and credible reports regarding the issue; following which the interior ministry, ignoring any further official assistance of FO, extended Raymond Davis's visa on its own. Meanwhile, Pakistani diplomats in America have informed that there was intense pressure of Washington regime for the release of Davis. -Agencies

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bought shares worth $7.79 million and sold share valuing $7.63 million.

Furthermore, other organization, mutual funds NBFC and local individuals remained on the buying side with shares worth $4.08 million, $1.27 million, $0.97 million and $0.36 million respectively.

On the other hand, biggest weekly selling were witnessed from local compa-

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at the news of arrest warrants for Musharraf, but the government would not bow to any external pressure and allow the use of the issue as a springboard to heroics. Awan said that the PPP-led government did not have any personal agendas but instead would work towards ensuring the fulfillment of the national agenda. He said that lawyers were important members of society and the government was bringing an amendment to the constitution to ensure that federal and provincial governments allocate separate budgets for lawyers. He cited the 18th amendment, which had erected a strong resistance against any further dictatorships and said that government strictly eschewed any political vendettas. He held lawyers as a part of strong pillar of Pakistani democracy, which has been declared a source of strength in constitution, and also denied any pending issue of increase in governmental salaries; also cautioning that government would be carrying out strict monitoring of federal ministers. -Agencies

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to Aiwan-e-Sadr for an explanation. They said that Shah Mehmood Qureshi did not attend a meeting between President Zardari and US Congressional delegation and when he was asked for his absence, the former Foreign Minister said he did not receive an invitation. The sources said it was because of Shah Mehmood Qureshi that the oath taking ceremony of the new cabinet was delayed for 25 minutes and later he told the party leadership that he has no interest in the Ministry being offered to him. Some insiders say that the portfolio of Foreign Ministry would be retained by the Prime Minister for the remaining two years of the present government and Hina Rabbani Khar would be asked to run the affairs of the ministry.

Meanwhile thousands of people from the constituency of Shah Mehmood Qureshi staged a protest demonstration in Multan on Sunday against non-inclusion of their elected member in the new Cabinet. The protestors blocked the main Multan highway for some time. The participants on the occasion said that Qureshi adopted a principled stand against the US national Raymond Davis and this was the reason that he was not included in the cabinet as Foreign Minister.

Meanwhile, Federal Information Minister Dr Firdaus Ashiq Awan has expressed her mystery over Shah Mehmood Qureshi's dissent/ desertion from Cabinet, coinciding with that of former president Musharraf's arrest warrants.-Online

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other objections. "Whether the bids to acquire used aircraft were invited, was competitive climate ensured and airbus offer was received or not?" these objections were also raised by the Planning Commission. Planning Commission also questioned that had the Engineering Department of the PIA evaluated other options or confirmed to new Boeing 777 against used-ones. It may be mentioned here that PIA operates a range of advanced aircraft, ranging from the world's preferred Boeing-777 airplane to the super-quiet Airbus A-310. According to the details; of the Boeing 777 aircraft, the Boeing 777 family comprises of long-range, wide-body twin-engine airplanes. PIA was the first airline in the world to operate all the three variants of the 777 family including 777-200LR, 777-200ER and 777-300ER, all of them are appreciated by PIA's travelers.

PIA also holds the privilege of being the launch customer for 777-200LR, one of PIA's aircraft holds the record for the longest commercial jet flight in aviation history. At present PIA is serving destinations in USA, Canada, UK and Europe through its 777 fleet. PIA also has the Boeing 747, often referred to as "Jumbo Jet", is amongst the world's most iconic and recognisable jet airplanes. This 4-engine long haul wide-body airplane has a two-deck configuration.

PIA operates two variants of 747 families which includes 747-300 and 747-200 Combi. At present due to its capacity, 747-300 fleet is mostly deployed to cater high density requirements like carrying intending pilgrims to and from Saudi Arabia. The Airbus A310 is a medium to long range wide-body airplane providing a spacious interior to its travelers. -APP

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welfare of the masses not for the power, adding the MQM has no enmity and differences with any one. He said that they vowed they would unconditionally cooperate with each other for the elimination of the terrorism and extremism and he also demanded of the holding LG polls in the country. Their struggle is peaceful and we believe in peaceful struggle through vote, he added. He warned that they have right to come out on roads like people of Egypt and Tunisia if any one tries to create hurdle in their struggle. Dr Farooq Sattar said that MQM Quaid Altaf Husian invited PML-Q leadership and workers to attend the public gathering of the MQM at Minar-e-Pakistan on April 10. Welcoming the MQM delegation, Ch. Pervaiz Elahi said that the PML-Q agreed with MQM over new working relationship. He said that their agenda is to jointly work for the welfare of the masses and development of the country. -Online

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FO says trilateral talks important for peace

‘Davis row won't hit Pak-USA ties’

ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani meeting with President Zardari at Aiwan-e-Sadr.-APP

Egypt mily rulers dissolve Parliament CAIRO: Egypt's military leaders dissolved parliament and suspended the constitution Sunday, meeting two key demands of protesters who have been keeping up pressure for immediate steps to transition to democratic, civilian rule after forcing Hosni Mubarak out of power.

The military rulers that took over when Mubarak stepped down Friday and the caretaker government also set as a top priority the restoration of security, which collapsed during the 18 days of protests that toppled the regime.

The protesters had been pressing the ruling military council to immediately move forward with the transition process by appointing a presidential council, dissolving the parliament and releasing detainees.

"They have definitely started to offer us what we wanted," said activist Sally Touma, reflecting a mix of caution and optimism among protesters who want to see even more change, including repeal of the repressive emergency law.

Judge Hisham Bastawisi, a reformist

judge, said the actions "should open the door for free formation of political parties and open the way for any Egyptian to run for presidential elections."

Hossam Bahgat, director of the nongovernmental Egyptian Initiative for Personal Rights, said the military's steps were positive but warned that Egypt was on uncharted legal ground.

"In the absence of a constitution, we have entered a sort of 'twilight zone' in terms of rules, so we are concerned," he said. "We are clearly monitoring the situation and will attempt to influence the transitional phase so as to respect human rights."

The military ruling council said it will run the country for six months, or until presidential and parliament elections can be held. It said it was forming a committee to amend the constitution and set the rules for a popular referendum to endorse the amendments.

Both the lower and upper houses of parliament are being dissolved. The last parliamentary elections in November See # 1 Page 11

Hajj 2011 to go cheaper by Rs36k ISLAMABAD: Ministry of Religious Affairs is making all-out efforts to ensure maximum facilities to intending Hujjaj by reducing Hajj expenses for year 2011 by Rs. 36,000 per pilgrim.

"Efforts are on to curtail Hajj expenses from Rs236,000 to Rs200,000 per pilgrim, under the government scheme," sources in the Ministry told APP. The ministry is taking a number of steps to ensure provision of maximum facilities to pilgrims, keeping in view difficulties faced by Hujjaj during previous years.

The services of those Pakistanis, who are already in Saudi Arabia would be hired as Khuddam-ul-Hujjaj and their number would be increased from 400 to 800.

Previously Khuddam were paid 70 Saudi riyals for their services but now they will get 100 riyals. We have

formed a committee to conduct interviews from those Pakistanis who are already present at the Holy Land.

Besides, services of Urdu speaking drivers would be hired to resolve transportation problems of Hujjaj in Saudi Arabia.

The Ministry would start receiving Hajj applications from April 10 with a renewed pledge to provide maximum facilities to intending pilgrims and ensure flawless arrangements for Hajj-2011.

The applications are being sought almost six months before the commencement of pre-Hajj flight operation, which would be received through designated bank branches of Allied Bank Limited, Habib Bank Limited, Muslim Commercial Bank, National Bank of Pakistan, United Bank Limited and Zarai Taraqiati Bank Limited.

See # 2 Page 11

Pak backs Afghan led peace process UNITED NATIONS: Pakistan supports an Afghan-led and inclusive reconciliation process in Afghanistan to pave the way for durable peace and stability in the war-torn country, Pakistani Ambassador Abdullah Hussain Haroon has said.

"We have a stake in a peaceful and stable Afghanistan," he said while participating in a discussion panel at the United Nations on the subject of "Afghanistan: Is a Negotiated Settlement Possible?"

The well-attended event was organized by the Century Foundation and MidAtlantic region of the United Nations Association of the United States.

Other participants were Robert Finn, a former United States to Afghanistan and Zahir Tanin, Afghanistan's UN Ambassador. Jaffrey Laurentia, senior fellow in international affairs at The Century Foundation, was the moderator.

Elaborating his remarks on the Afghan reconciliation process, Ambassador Haroon said Pakistan had

welcomed the establishment of "the High-level Peace Council" in Afghanistan and its head Burhanuddin Rabbani visited Islamabad last month.

"Pakistan wants durable peace and stability in Afghanistan, stability and development in Afghanistan is in our national interest", he said, adding that the safe return of more than 1.5 million registered Afghan refugees living in Pakistan was only possible in a peaceful and stable Afghanistan.

The quest for peace and stability in Afghanistan was driving bilateral relations into long-term cooperative partnership, he said.

Close cooperative relationship exists between the leadership of the two countries at all levels. Replying to a question, Ambassador Haroon said Pakistan was doing everything possible to get rid of the militants who have taken refuge on its soil, but US-led coalition forces must do their part.

See # 3 Page 11

NAB head turns a blind eye to politicians ISLAMABAD: Chairman NAB, Justice (Retd) Deedar Hussain Shah has voided 2808 cases reasoning insufficient evidences whereas recovered Rs39 millions from defaulters during the first three months of his appointment.

NAB issued the performance of its chairman from October to December 2010, on Sunday, wherein it is learnt Deedar Hussain Shah has not registered a single case against any political figure despite the fact, he directed to hold inquiries against 45 government employees and businessmen.

According to other details given in the quarterly progress report contain that 32 petitions were registered with accountability courts, 19 accused were sentenced with different penalties whereas 11 were released.

See # 4 Page 11

ISLAMABAD: Pakistan expressed the hope Sunday that its growing row with the United States over a jailed US embassy employee will not scuttle its crucial talks with Washington and Kabul on efforts to stabilise Afghanistan.

Tensions have been rising between Pakistan and the United States over the case of Raymond Davis, a US consular employee who shot dead two Pakistanis last month in what he said was an attempted robbery.

US State Department Saturday said a meeting scheduled this month in Washington among US, Afghan and Pakistani officials had been postponed, citing "political changes" in Pakistan. Pakistan Prime Minister announced a new, smaller cabinet last week, dropping Shah Mehmood Qureshi as foreign minister.

Neither Pakistan nor the United

States has linked the postponement of the trilateral meeting to the detained consular employee, but diplomats have said Washington had put many highlevel dealings, including official visits to Pakistan, on hold because of the standoff.

Pakistani Foreign Ministry spokesman Abdul Basit said Islamabad was looking forward to the rescheduling of the trilateral meeting as soon as possible as "such meetings yield positive results for peace and security".

"We hope one person would not drive Pakistan-US relations and we hope we would not be losing sight of the strategic imperative of our relations," Basit told Reuters.

The trilateral meetings have been held periodically to foster stability in Afghanistan, where around 100,000 US troops are fighting Taliban militants, and in Pakistan, where a fragile govern-

ment battles an insurgency on its own.

The controversy over Davis is the latest issue pitting Pakistani officials against their US counterparts even as they struggle to project an image of cooperation on security.

The United States says Davis's arrest is a violation of international conventions because he has diplomatic immunity, while Islamabad says the matter will be decided by its courts.

The shootings have taken antiAmericanism in the mainly Muslim nation to new heights as supporters of the slain men have held several protests and burned US flags.

In addition to the two men shot and killed by Davis, a third man was killed when a vehicle from the US consulate, apparently en route to rescue Davis, struck and killed a passerby. -Reuters

10k Indian troops to leave Kashmir NEW DELHI: India plans to withdraw 10,000 paramilitary troops from Kashmir in 2011 and renew efforts to hold talks in the rebellionhit Himalayan region, a top government official said Sunday.

A separatist insurgency has raged in Indian-administered Kashmir, a Muslim-majority state, for 20 years and at least 114 people died in street protests last summer in pitched battles with security forces.

"I think this year we can easily take out 10 battalions (10,000 per-

sonnel), if not more," Indian Home Secretary Gopal Pillai told the Press Trust of India news agency.

"Irrespective of the situation, I can take out 10 battalions and it would not have any impact."

There are currently 70,000 paramilitary troops in Indian-administered Kashmir plus 100,000150,000 army soldiers.

Many state politicians in Kashmir believe their huge presence has fuelled recent deadly violence.

"There are more than adequate

forces in Kashmir and it can do with less central forces," Pillai, the home ministry's top civil servant, said.

"You have to start talking to other people and get fresh ideas so I think we have to reach out to the people of Kashmir."

Security forces opening fire at separatist demonstrations have triggered a cycle of violence in Kashmir over recent summers, and the government in New Delhi is keen to calm tensions in the year ahead. -Reuters

SBL, ABB ink deal for Royal Rodale Club KARACHI: Summit Bank Limited (SBL) (Formerly Arif Habib Bank Limited) has entered into an agreement with ABB Recreations (Pvt) Limited; owners & operators of The Royal Rodale Club; to offer its club membership to potential customers through a convenient & affordable financing plan.

The most exciting feature of this financing plan is "0 per cent mark-up" which will enable potential customers to get the club membership through staggered membership fee payment without any additional cost.

See # 5 Page 11

China urges consensus on UN reforms BEIJING: China called upon members of the United Nations that they should work for a broadbased consensus on the reform of the UN Security Council.

"Experience has proven that presetting results for the reform or forcing premature reform plans will not only undermine the unity of UN member nations, but also harm the reform process, which will not be in line with any party's interests," the Xinhua news agency quoted foreign ministry spokesman Ma Zhaoxu who made the remarks in response to a relevant question last Saturday.

China is ready to maintain contact with all relevant parties, and make joint efforts with other member nations to push forward the reform in a way which can be conducive to safeguarding the overall interests of UN and the unity of the member nations, said Ma. See # 6 Page 11

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