The Financial Daily-Epaper-15-11-2010

International Karachi, Monday, November 15, 2010, Zil Hajj 8, Price Rs12 Pages 12

Qureshi welcomes release of Suu Kyi

Millions march into Mina as Hajj begins

See on Page 12

Security of Iranian Envoy beefed up

See on Page 12

Shakai suicide blast kills one, hurts 8

See on Page 12

See on Page 12

Two-day Pakistan Development Forum begins

Economic Indicators $16.95bn 14.17% $7.17bn $12.25bn $(5.08)bn $(545)mn $3.50bn $455.10mn Rs 411bn $58.41bn Rs 4863bn $124.90mn -3.85% 4.10% $1,051 171.04mn

Forex Reserves (5-Nov-10) Inflation CPI% (Jul 10-Nov 10) Exports (Jul 10-Nov 10) Imports (Jul 10-Nov 10) Trade Balance (Jul 10-Nov 10) Current A/C (Jul 10- Sep10) Remittances (Jul 10-Nov 10) Foreign Invest (Jul 10-Sep 10) Revenue (Jul 10-Oct 10) Foreign Debt (Sep 10) Domestic Debt (Aug 10) Repatriated Profit (Jul- Sep 10) LSM Growth (Aug 10)

GDP Growth FY10E Per Capita Income FY10 Population

Pakistan spells progress vision Pak sees crisis as chance for better rebuilt: Shaikh Holbrooke, WB, ADB, IMF high-up address today

Portfolio Investment

Special Correspondent/ Agencies

SCRA(U.S $ in million)

120.97 Yearly(Jul, 2010 up to 10-Nov-2010) Monthly(Nov, 2010 up to 10-Nov-2010) 16.25 32.54 Daily (10-Nov-2010) 2532 Total Portfolio Invest (22 Oct-2010)

NCCPL (U.S $ in million)

FIPI (12-Nov-2010) Local Companies (12-Nov-2010) Banks / DFI (12-Nov-2010) Mutual Funds (12-Nov-2010) NBFC (12-Nov-2010) Local Investors (12-Nov-2010) Other Organization (12-Nov-2010)

2.05 -3.00 -1.80 2.53 0.29 0.28 -0.35

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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)

03-Nov-2010 03-Nov-2010 03-Nov-2010 29-Sep-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010

12.75% 13.11% 13.24% 13.50% 12.79% 12.97% 13.23% 13.63% 13.71% 13.64% 13.74% 13.82% 14.21% 14.33% 14.50%

Commodities Crude Oil (brent)$/bbl Crude Oil (WTI)$/bbl Cotton $/lb Gold $/ozs Silver $/ozs Malaysian Palm $ GOLD (NCEL) PKR KHI Cotton 40Kg PKR Open Mkt Currency Symbols Buy (Rs)

86.34 84.88 134.18 1,365.50 25.94 1,077.00 38,193 9,109 Rates Sell (Rs)

Australian $ 83.10 Canadian $ 83.50 Danish Krone 15.90 Euro 114.90 Hong Kong $ 10.95 Japanese Yen 1.023 Saudi Riyal 22.45 Singapore $ 64.90 Swedish Korona 12.85 Swiss Franc 87.10 U.A.E Dirham 23.05 UK Pound 135.60 US $ 85.15

84.10 84.50 16.40 116.40 11.15 1.049 22.75 65.90 13.00 88.10 23.40 137.10 85.55

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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

84.72 84.62 15.58 116.13 11.00 1.036 22.74 65.81 12.42 87.38 23.22 137.25 85.40

84.92 84.82 15.62 116.40 11.03 1.038 22.80 65.96 12.45 87.58 23.28 137.57 85.59

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ISLAMABAD: Richard Holbrooke gestures while talking to Dr Hafeez Shaikh during the Pakistan Development Forum in Islamabad here Sunday. -Reuters

Surges $2.78 billion QoQ in 1QFY11

Foreign debt up at $58.41 billion Ahmed Siddique KARACHI: Pakistan's stock of external debt and liabilities has hiked by 5 per cent or $2.78 billion QoQ to $58.41 billion against $55.62 billion recorded in FY10.

Comparison on year-on-year basis showed further miserable picture, as foreign debt and liabilities increased 5.8 per cent or $3.2 billion YoY to $58.41 billion against $55.21 billion recorded in 1QFY10, as per the data released by State Bank of Pakistan.

The main reason for increase in foreign debt was that Pakistan had received $831 million in 1QFY11 from the International Monetary Fund (IMF) and some multilateral

loans from different countries.

However, there are concerns on repayment of loan in late 2011 and government has only few options either rescheduling the loan of IMF or pay debt through convertible bonds of state-owned companies.

Similarly country's foreign debt servicing went up 39.9 per cent to $1.67 billion against previous year's same period of $1.19 billion.

Out of which, $1.43 billion was paid as principal amount of foreign loans and $233 million on account of interest payment. Therefore, the principal amount in overall payments of debt servicing stood at 86 per cent, whereas 14 per cent had been paid on account of interest payment.

150MW wind farm to cost $375mn

Pak, US ink pact for wind power ISLAMABAD: Pakistan and United States (US) Sunday signed a wind power generation project which will be completed in two years at a cost of $375 million (Rs32 billion) to produce 150-megawatts of electricity.

The agreement was signed by US Special Envoy for Afghanistan and Pakistan Richard Holbrooke and Secretary Water and Power Javed Iqbal on behalf of their respective governments here at

a local hotel.

US ambassador to Pakistan Cameron Munter, Director USAID Andrew Sisson, Chairman Alternative Energy Development Board Arif Alauddin and country representative of American Power Company (AES) Muhammad Iqbal were also present on this occasion.

The project will be in three sites in the Gharo Corridor, in Thatta, Sindh near Karachi to See # 6 Page 11

LPG goes up Rs8/kilo Staff Reporter KARACHI: Per kilogram (kg) prices of the Liquefied Petroleum Gas (LPG) have increased by Rs8 resulting in prices of domestic cylinders of LPG rising to Rs100, media reported on Sunday.

The fresh increase has resulted in price rise in LPG in Azad Kashmir to Rs150 per kg whereas in Lahore, Multan and Bahawalpur to Rs120 per kg.

Rs8 per kg increase has brought the price of domestic cylinder to Rs100 while that of commercial cylinder to Rs400.

Price of domestic cylinder in Fata and Azad Kashmir has reached Rs1730 while 1390 in Lahore, Multan and Bahawalpur.

Near-$90-oil won't hurt economy: Opec TEHRAN: Iran's Opec governor said oil prices of $70-$90 per barrel would not hurt the global economy, the oil ministry's official website SHANA reported Sunday.

"Consumers and producers are unanimous that oil at $70$90 prices are suitable prices and will not hurt the global economy," Mohammad Ali Khatibi told SHANA. Top oil exporter Saudi Arabia earlier this month shifted upwards the band from a price it has backed for around two years, saying oil at $70-$90 a See # 5 Page 11

ISLAMABAD: The Government of Pakistan here Sunday announces its future vision for the development and progress of the country and shared the growth agenda with the participants and partners during a two-day Conference -Pakistan Development Forum (PDF) here.

The Forum was inaugurated

by Minister for Finance and Economic Affairs, Dr Abdul Hafeez, while high-level participation including US Special envoy for Afghanistan and Pakistan Richard Holbrooke, Vice President of World Bank and ADB, UK Minister for International development, senior officials of the IMF are par-

ticipating the Forum.

In his opening remarks, Dr Shaikh welcomed the delegates for their participation in the Forum and expressed country's resolve to meet economic challenges faced by the country in the aftermath of the devastating floods which inflicted about $10 billion losses to the national economy.

He expressed the hope that with the support of development partners and donor countries, Pakistan would be able to overcome the economic challenges by turning crisis into success, and regain its macroeconomic stability with the government's prudent socioeconomic vision which has already been launched.

He said that the Forum would provide opportunity to have

Amin Fahim meets Gilani

US mkt access next goal: PM ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani Sunday hailed the dutyfree access of 75 Pakistani products to the European Union markets, added US markets would be the next target.

During a meeting with the trade minister Makhdoom Amin Faheem, the Premier said that efforts are on to ensure access for other indigenous products to EU markets too.

Prime Minister Gilani has said duty-free access of 75

Pakistani products to European markets is big achievement of the PPP-led government.

Talking to Amin Fahim, he said access to Europe would not only boost exports but also generate economic activities in the country.

Prime Minister said that Pakistani products' import by European countries was in line with the government policy of enhanced trade with the world and not to depend on foreign aid. The policy, he added, will See # 2 Page 11

KSE During Last Week

Foreigners gather $8.97mn equities Ghulam Raza Rajani KARACHI: Even though global market remained depressed and country's law and order situation stayed uncertain, but offshore

investors once again emerged as the net-buyer in Pakistan equity market with $8.97 million worth of buying in the last week, as per the National Clearing Company of Pakistan See # 3 Page 11

comprehensive dialogue with the development partners on government's strategic direction, priorities and policies.

He further said that deliberations of the PDF influence the country Partnership Programs/Strategies of the Donors and development partners, adding in addition, feedback from the development community facilitates alignment of government policy with international best practices.

In the plenary sessions on the topics of Provincial development agenda, Advisor to Chief Minister Punjab Zulfiqar Ali Khosa, Chief Minister of Khyber Pakhtunkhwa (KP) Amir Haider Khan Hoti, Governor KP Owais Ahmed See # 7 Page 11

MQM won’t back anti-people moves: Altaf LONDON: Muttahida Qaumi Movement (MQM) Chief Altaf Hussain Sunday said that his party could never support any anti-public decision.

In a statement issued from MQM Secretariat London, Altaf Hussain said this while talking on the telephone to an emergency meeting of the party's parliamentarians in Karachi.

He said imposition of additional property tax, flood surcharge and Reformed General Sales Tax will directly affect the salaried class and amount to inviting the poor to commit a mass suicide.

"Instead of imposing additional tax on the salaried class, the government should have taxed the agricultural income," the MQM Chief suggested, adding government should take action against the influential people who evade tax and cut down its own non-developmental expenditures. He said the poor are See # 4 Page 11

2 ISESCO urges solidarity among Muslim nations Monday, November 15, 2010

ISLAMABAD: The Islamic Educational, Scientific and Cultural Organization (ISESCO) on Sunday called for stronger solidarity-based relations between the components of the Muslim Ummah through prevention of conflicts for the unity of Ummah.

Director General ISESCO, Dr Abdulaziz

Othman Altwaijri in his message to the Muslim World on the occasion of Eid Al-Adha, emphasized the need to overcome the increasing tensions among Muslims in many parts of the world as a result of futile yet uncontainable conflicts, coupled with a strong foreign influence that only runs counter to the supreme

interests of the Muslim World, through the waging of a spiral of factional and ethnic wars fueled by historical old legacies, said a press release.

In this connection, the Director General urged Muslims to transcend their often doctrinal yet futile discords if measured against the principles of the Holy Quran

and the Sunnah.

He said that Muslims constitute one Nation sharing one religion, one Holy Book, and one Qiblah. Unless they are not addressed properly, the challenges and threats they are facing could weaken the Ummah, spoil its potentials, and leave it in a permanent state of lethargy.

By the same token, Dr Altwaijri urged the Muslim World to maintain the cohesion of its societies and unity of its countries, based on brotherly love, peace, cooperation towards virtue and righteousness, and supremacy of the Muslim Ummah's interests over transient ones.

He also stressed the

Japanese Minister calls on Deputy Speaker NA

Japan vows more help for flood affected ISLAMABAD: Makiko Kikuta, Japanese ViceMinister for Foreign Affairs has assured Sunday that that Japan would give additional assistance to Pakistan for flood affectees keeping in view the massive scale of destruction caused by floods The Japanese Minster Makiko Kikuta while talking to Faisal Karim Kundi, Deputy Speaker National assembly here said her government would also persuade other member countries in PDF Forum to honour their pledges.

Filing of Form-29 last-day ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has extended the last date of filing of the Form-29 to Monday, Nov 15 to facilitate the corporate sector.

The last date for filing Form 29 for most of the companies, which closed their accounts on June 30, was Nov 13 or Nov 14, which falls on Saturday and Sunday (public holidays).

So the SECP decided to keep the CROs open on November 13 and 14, exclusively for accepting of documents, said a press statement.

However, in order to further facilitate the companies, the SECP has now extended the last date of filing Form 29, it said adding consequently, the Form 29 would now be accepted by 8 pm on Monday, Nov 15.

The facility would be applicable to both online and offline filing of Form 29.

The companies are also required to file annual returns on Forms A/B within 45 days, in case of listed companies and 30 days in case of other companies.-APP

She said that the scale of destruction caused by floods was massive which required international assistance.

She said that Japan was committed to deliver its pledges made at the Friends Forum for the social sector development and rehabilitation of flood-affected.

She said that Japan would assist Pakistan in rehabilitation of flood affectees and rehabilitation of infrastructure in effected areas through technical and monetary assists.

While appreciating Japanese support to

Pakistan, Faisal Karim Kundi said that Pakistan attaches great value to its unique relations with Japan which were tied in bonds of mutual understanding and friendship.

The Deputy Speaker said that Japan was an important development partner of Pakistan which has always stood by it in time of crises. He appreciated the Japanese assistance for flood-affectees and rooting out terrorism from the

country.

He said that Pakistan was confronted with bane of terrorism and extremism which has badly affected the economy of the country. He said that the government was trying its utmost to root-out that menace through its indigenous resources however; support of friendly would supplement its efforts.

Faisal Karim Kundi said that the existing bilateral relations between both the

Ehtesab Bill to be passed with consensus: Kaira ISLAMABAD: Minister for Information and Broadcasting, Qamar Zaman Kaira said government was committed to eradicating corruption from the society and it would get the Ehtesab Bill passed after evolving consensus of all parties in the parliament.

He said the government had sent the National Accountability Bill (NAB) to the concerned committee of the National Assembly time and again to evolve consensus on the bill so that there may not be any objection after its passage.

"We can get the bill passed but Prime Minister Syed Yusuf Raza Gilani had directed that there must be a consensus on the draft bill," he said this in a PTV programme. In response to a point raised

by PML (N) leader, Ahsan Iqbal, the Minister said the disagreement was basi-

cally upon the appointment of Head of NAB and PML (N) desires that its Head should be a sitting judge of the Supreme Court.

Qamar Zaman Kaira said "in the democratic process we should not stick to only one issue rather we should move forward to attain progress."

Answering a question about a letter written by PML (N) Chief, Mian Nawaz Sharif to President Asif Ali Zardari, he said this was a democratic method and added being a party chief he had inked a letter to the Head of the Pakistan People's Party (PPP).

In the letter, Nawaz Sharif has advised the President to address the issues of corruption, inflation, lack of accountability and take measures to save large stateowned enterprises.-APP

Capital plans solid waste management ISLAMABAD: Islamabad Capital Territory (ICT) administration is planning to set up a solid waste management system for rural areas of the capital.

Accordingly, a PC-1 of the waste management plan would soon be got approved from the concerned quarters, sources in the local administration informed APP. Initially, six union councils of the capital including Rawat, Sihala, Tarlai, Koral, Phulgaran and Bhara Kahu have been selected to implement the project, they said.

The sources said the local administration has sought Rs10 million funds from the federal government to purchase tractor trolleys with hydraulic system to lift waste from the designated points for proper disposal.

The local administration would place waste bins in streets of the selected union councils, which would be lifted by 70 sanitary workers on daily basis. -APP

nations should be strengthened by exchange of parliamentary delegations and people-to-people contact.

He also apprised the Minister about the working of National Assembly and its standing Committees.

Makiko Kikuta acknowledged the concerns of Deputy Speaker and said that Japan desires to see Pakistan a prosperous and stable country.Agencies

Rs373mn PDC on cards SIALKOT: The federal government is considering establishing a product development centre (PDC) for composite-based sports goods in Sialkot at a cost of Rs373.466 million.

Official sources told APP here on Sunday setting up PDC was aimed at enabling the sports goods industry to cope with emerging technology of composite material and enter into the largest segment of sports goods export.

Sialkot is known globally as a major producer of quality sports goods, surgical instruments, leather garments, sportswear and musical instruments etc. Local craftsmen produce immaculate products while export oriented entrepreneurs ensure the products reach international destinations.

Over 200,000 are engaged directly or indirectly with export activities while the export-oriented city is earning one billion US dollars through its exports.

The proposed PDC will help and enable the local industry to aggressively entre into the international market of composite-based sports goods. The sports industry sector of Sialkot is already enjoying strong linkages with international sports goods brands which would help in marketing of these products. -APP

need to pay utmost attention to boosting economic cooperation, promoting inter-State trade, implementing the resolutions of the Islamic Summit conferences and the relevant meetings of the OIC Council of Foreign Ministers.

This, he insisted, should be corroborated by enhanced joint Islamic

Mobilink holds 4th Indigo Gulf tourney

action through the implementation of the resolutions of the specialized Islamic conferences pertaining to education, higher education, technology, innovation, culture, environment, childhood, tourism and Awqaf and Islamic affairs.

Similarly, the message pointed out that the strategies and plans

Medica 2010 Germany

40 Pak co set to join in trade fair ISLAMABAD: The world's leading medical trade fair will open on Nov, 17 in Duesseldorf, Germany.

As the world's largest four day event, Medica focuses on the entire range of the medical sector.

The exhibition is expected to be visited by a wide range of professionals from all over the world, said a press release issued by Pakistan's embassy in Berlin.

Pakistan will participate in Medica 2010 with over 40 companies. Trade Development Authority of Pakistan will be attending the fair. Exhibitors from Pakistan will be displaying surgical instruments and related products.

Some companies will be

Ensure cleanliness in Eid, EDOs told KARACHI: Provincial Coordinator Peoples Primary Health Initiative (PPHI) and Advisor to Chief Minister Sindh on Information & Archives Sharmila Farooqui Sunday asked all relevant EDOs of Sindh to ensure strict medical check up of sacrificial animals against any possible prevalence diseases among them at cattle markets and other selling points so as to provide healthy meat and mutton to people on the occasion of Eid-ul-Azha.

Sharmila said all EDOs need to devise strategies in their respected areas and form teams of veterinarians with sufficient quantity of anti-animal disease drugs. The veterinarians, who are experienced in medical operations, drug dosages, needle sizes and injection

sites, should be assigned duties with tight deadlines to cover their areas, she stressed.

The advisor said sick animals should be isolated from other animals in cattle markets and other selling outlets in order to avert spreading of the diseases and their transfer to human. The health officials should also advise people to keep themselves and their children away from sacrificial animals to avoid transfer any possible infectious disease to them.

She said vaccination can play an important role in preventing cattle diseases, viruses, bacteria or a combination of both. The advisor said effective disease management must be made by developing coordination among officials, stakeholders and civil society people-APP

added.

This ranks country 8th in

the world as far as the number of the diabetics is

concerned and according to WHO estimation,

TV PROGRAMMES MONDAY Time Programmes 7:00 News 8:00 News 9:05 Subah Savere Maya ke Sath 11:10 The Reema Show (Rpt) 12:00 News 13:10 Faisla Aap Ka (Rpt) 14:10 Tafteesh (Rpt) 15:00 News 16:00 News 17:30 Samaa Metro 18:00 News 18:30 Samaa Sports 19:30 Crime Scene 20:03 Newsbeat 21:00 News 22:03 Tonight With Jasmeen 23:00 News 23:30 24

MONDAY

Karachiites walk for diabetes awareness Pakistan Diabetes Association, Prof Abdul Samad Shera.

Addressing the gathering, Prof Abdul Samad Shera expressed his concern that the rising incidence of diabetes has created an alarming situation worldwide.

He said according to World Health Organization estimates, there are presently more than seven million Diabetics in Pakistan and this number will increase to 16 million by 2025.

Another six million or more are suffering from impaired Glucose Tolerance which means they are at high risk of developing diabetes, he

displaying specialized items including hospital wear, linen, some advanced medical equipment and disposable articles.

Pakistan's Ambassador to Germany Shahid Kamal, in his message, stated that Pakistan would be an important participant in Medica 2010.

It is heartening to note that Pakistani companies are contributing towards global supply chain in different business sectors of the medical sector.

Pakistan's active participation in Medica 2010 will enable Pakistani companies to showcase their products to buyers from all over the world, he added.APP

KARACHI: Mobilink organised the 4th indigo Invitational Golf Tournament-2010 at the Islamabad Golf Club.

For the past three years, this 18-hole tournament has consistently attracted golfing enthusiasts from within the Mobilink-indigo customers.

Deriving excitement and fun through friendly competition is the basic aim of this tourney.

President and CEO, Mobilink Rashid Khan said; "Keen participation from golfing enthusiasts in the indigo Golf Tournament has transformed this brief recreational event into a popular sporting activity conducted in three major cities." More than 100 participants took part in the golfing tournament. The significant performers were presented high-valued gifts from Mobilink. The main event prizes comprised of: "Winner Ladies Net" which was won by Humaira Khan, the "Winner Ladies Gross" was Agnus De Kok, ISLAMABAD: Irfan Akram, Vice President the "Winner Gents Net" Customer Care teeing-off to start the 4th Club was Dr Hassan and the "Winner Gents Gross was Indigo Invitational Golf Tournament 2010 organized Shahid Gulrez.-PR

by Mobilink in Islamabad.

World Diabetes Day

KARACHI: A Diabetes awareness walk organised to mark World Diabetes Day by Baqai Institute of Diabetology and Endocrinology on Sunday at Boat Basin, Clifton here.

The purpose of the walk was to create awareness in the people at large, regarding diabetes, its prevention and management and to stress the importance and need of regular physical activity and exercise, said a press release.

The walk was inaugurated by Chancellor of Baqai Medical University, Prof FU Baqai and Honorary President International Diabetes Federation and Secretary General

devised by ISESCO and adopted by the Islamic Summit conferences provide a strong groundwork of development in the Muslim World, and called for implementing them and shaping the national policies of the Member States in light of their guidelines and objectives. -APP

Pakistan will be placed 4th in this regard, by the year 2025.

These figures make diabetes and epidemic and call for an immediate action. He said Pakistan is one of the countries having the highest number of diabetics and facing an epidemic of diabetes.

Rapid urbanization, sedentary lifestyle and unhealthy dietary trends prevailing in our society are the main culprits for the increasing incidence of diabetes and obesity.

Speaking on the occasion, Director, Baqai Institute of Diabetology ad Endocrinology, Prof.

Abdul Basit told the participants that the institute

is strongly determined to improve diabetes care in Pakistan and it is working vigorously for the prevention of diabetes in the country.

In this regard "National Diabetes and Diabetic Foot Programme" was launched with the collaboration of World Diabetes Foundation with an aim to create awareness regarding diabetes, to initiate prevention of diabetes and to improve the diabetes care and the diabetic foot care in Pakistan.

At the conclusion of the walk, the chief organizer of the walk, Dr Zahid Miyan thanked all the participants and the guests. APP

Time 8:00 9:00 9:15 10:00 10:15 11:00 11:05 12:00 12:15 13:00 13:05 14:00 15:02 15:30 16:15 17:05 (Rpt) 18:05 19:00 19:05 19:30 20:00 20:05 21:00 22:00 22:05 23:00 23:05

Programmes Amnay Samnay (Rpt) News Pehla Sauda News Bazaar News Ghar Ka Kharch News Power Lunch News Agenda 360 (Sat Rpt) News Akhri Sauda Munafa Khor Hoshiyar (Rpt) Karobari Dunya Ghar Ka Kharch Chai Time News Tax Time Mang Raha Hai Pakistan News Islamabad Say Pakistan Aaj Raat News Doosra Pehlu News Agenda 360 (Sun Rpt)

,

Monday, November 15, 2010

3 US dollar weekly outlook

One eye on EU, other on QE NEW YORK: With uncertainty surrounding the euro-zone's deeply indebted peripheral nations and also hanging at the edges of US quantitative easing, currency investors will need to keep one eye trained on Europe and the other on the US this week as they grapple with some potent, yet conflicting, market forces.

"The market is going to focus on multiple things," said Jessica Hoversen, fixed-income and foreign-exchange analyst at MF Global in Chicago.

Despite a relief rally that added 1 cent against the dollar on Friday, the euro will likely come under renewed pressure as the problems faced by the region's heavily indebted peripheral nations continue to grab headlines.

"Concerns in the periphery have been largely glassed over, and were they to have emerged earlier this year, it would have been quite negative for the euro," said Michael Woolfolk, senior currency strategist at BNY Mellon in New York. "We are waiting to see what, if any,

Soyoil soybean, corn fall as China fears

PHNOM PENH, Cambodia: Cambodian farmers cut rice in a field in Cambodia's Kampong Speu province, some 60 km south of Phnom Penh. -Agencies

Gold falls most since July on commodities rout Platinum, silver, palladium slide in gold’s wake NEW YORK: Gold suffered its biggest fall in four months on Friday, tumbling 3 per cent as Chinese rate-hike talk, euro-zone debt worries and weaker Treasuries prices triggered widespread unwinding of risk in commodities.

Spot silver tumbled almost 7 per cent, its biggest one-day loss since February and second major slide this week, as investors liquidated more positions in heavy trade after the exchange raised margins by 30 per cent earlier this week.

In a week marked by disrupted correlations and extreme volatility, dealers said precious metals were caught up in near indiscriminate selling across the commodity spectrum rather than suffering from any bullion-specific bearishness.

Spot gold slid 3.3 per cent to $1,362.66 an ounce at 1909 GMT, having earlier hit a oneweek low at $1,359.70 an ounce.

It was the biggest one-day fall since July 1.

US gold futures for December delivery settled down $37.80 an ounce at $1,365.50.

"We have a liquidation pattern

across the board in every commodity market here," said Adam Klopfenstein, senior market strategist with MF Global's unit Lind-Waldock.

"Gold and other commodities are going to suffer in the short run as a result of the change in the opinion in the marketplace that China might not be able to grow as fast if it is going ... to rein in ... inflation or to curb fast money that has been spurring the economy," Klopfenstein said.

China this week raised bank reserve requirements, boosted yields on new government bills, and introduced new rules to curb money inflows. Those moves came ahead of Thursday data showing Chinese inflation at a 25-month peak, and spurring speculation that an interest rate hike will follow soon.

"People are worried now about China tightening. China has been driving a lot of commodities and so fears of further interest rate rises in China ... will have an impact on buying," said David Thurtell, a London-based analyst for Citigroup.

While the inverse link between gold and the dollar weakened

significantly this week as investors focused on European risk, it resurfaced part-way through Friday's trade when the euro pared gains as roiling financial markets outweighed a move

by European leaders to reassure nervous bondholders.

Analysts said that gold should be supported by underlying safehaven buying after the G20 meeting highlighted deep divides on currencies and trade imbalances among member countries.

G20 leaders closed ranks on Friday and agreed to a watereddown commitment to watch out for dangerous imbalances, yet offered investors little proof the world was any safer from economic catastrophe.

Interest in investment vehicles such as exchange-traded funds was soft, with holdings of the world's largest gold-backed ETF, New York's SPDR Gold Trust, falling by just under 1 tonne on Thursday. Among other precious metals, spot silver dropped 6.5 per cent to $25.94 an ounce, while platinum fell 4.5 per cent to $1,673.24 an ounce and palladium slipped 5.2 per cent to $672.72. -Reuters

Cotton dives by limit on China rate worry, margins NEW YORK: US cotton futures dived by their daily limit on Friday, falling for a third day as fears of higher Chinese interest rates combined with a sharp rise in margin rates threatened to end the market's four-month rally.

Cotton prices recoiled after hitting a 150-year high on Wednesday as the ICE exchange raised margins and traders bet that gains had run ahead of fundamentals, even with robust mill demand from top consumer China and dwindling stockpiles.

They extended that retreat on Friday amid across-the-board selling in commodity markets triggered by growing speculation -fueled by a big drop in the Shanghai stock market -- that Beijing could extend this week's

tightening measures by increasing interest rates.

"The cotton market's fortunes rise and fall with China," Mike Stevens, an independent cotton analyst in Louisiana, said. The money tightening choked off Chinese demand and "hit cotton along with everything else."

The benchmark March cotton contract on ICE Futures US fell the 5.00 cents limit to end at $1.3418 per lb. The session high was at $1.3655. It was the lowest close for the second position contract in 8 days.

But overall activity cooled significantly since Wednesday's record high over 101,000 contracts; Friday's activity came to around 38,000 lots, about 10 per cent above the 30-day average.

The weakness was also reflected in China's cotton market. The Zhengzhou Commodity Exchange's May cotton contract was last traded Friday at a session low of 29.290 yuan per tonne, down 2,380 yuan on the day. On Thursday, the contract had lost 1,650 yuan. "(Speculative) capital has been withdrawn from the market.

Without the capital support, the price is now more in line with physical prices," said Yang Guoqi, an analyst with Jinshi Futures Co. Ltd. A major factor in the US cotton market weakening was the nearly 30 per cent increase in cotton margins in two stages since Oct. 26 by ICE Futures US This brought cotton margins to their highest level since 1996.-Reuters

CHICAGO: US corn, soybean and wheat futures tumbled on Friday as talk of China raising interest rates stirred fears the country's economic growth will slow, and reduce its voracious appetite for a range of commodities.

The sell-off in grains, with corn and soybeans falling by the daily trading limits, mirrored investors liquidating their positions in markets ranging from crude oil to gold to sugar as the prospects of China, the world's No. 2 economy, raising interest rates chilled commodities markets across the globe.

Soybean futures plunged 5.2 per cent, the steepest slide in 15 months. Corn fell for the sixth consecutive session, dropping 5.3 per cent to the lowest point in a month, while wheat fell 4.9 per cent and touched a fiveweek low in its fourth straight down day.

All soyoil contracts fell by their daily trading limits and soymeal futures settled near limit-down.

Soybean futures, which had risen sharply this week following a bullish report by the US Department of Agriculture, notched their first weekly decline in six weeks, after rising 26 per cent since early October.

The November contract expired on Friday at $12.63 per bushel, down 67-1/4 cents, or 5.1 per cent. Actively traded January soybeans settled limitdown at $12.69, dipping below the $13-a-bushel mark for the first time in three days and down 1.2 per cent in the week.

The January through September 2012 contracts all closed limit-down. Soybean futures volume was estimated at about 255,000 contracts, up 24 per cent from the previous 30-day average, according to Reuters data. CBOT December soyoil closed 4.5 per cent lower at 52.53 cents.

Soymeal plunged 5.1 per cent in record-heavy volume, with December futures down $18.40 per ton at $339.70. Corn joined the retreat, with CBOT December down 5.3 per cent, its steepest drop in six weeks, at $5.34 per bushel, down the daily 30-cent limit. Futures were down more than 9 per cent from a week ago.

Corn futures trading volume on Friday was heavy at an estimated 513,000 contracts, according to Reuters data, down slightly from Thursday but up 34 per cent from the 30day average.

Wheat prices were also lower, with rains in some areas easing worries about a dry start to the US growing season.

CBOT December wheat fell 4.9 per cent, the steepest percentage drop in three months, to a three-week low of $6.691/4 a bushel, down 8 per cent this week. January wheat in Paris fell 4.11 per cent to 212.50 euros a tonne. -Reuters

catalyst triggers a correction in long euro positions."

On Friday, Ireland issued multiple denials following rumors that it was on the brink of requesting an emergency financial lifeline from the European Union. EU leaders issued a similar denial statement, dousing some worries in the smoldering sovereign-debt crisis, and helping the common currency bounce back from its lowest levels since late September.

"Europe's periphery, most notably Ireland, has been in and out of the rumor mill all day," Jack Spitz, managing director of foreign-exchange, financial markets and derivatives at National Bank in Toronto, said Friday. "It has become a bit amusing, actually."

Spitz said he is keeping watch on Ireland, which he expects very soon "to come to the realization that they require a bailout package" much like the one Greece accepted.

Hoversen said she is watching growing political instability in Italy, where the opposition

party on Friday presented a noconfidence motion against Prime Minister Silvio Berlusconi.

"The removal of Berlusconi right now would put the spotlight on Italy, which has largely avoided scrutiny until now," she said.

Meanwhile, the dollar is facing increased volatility as the market balances the amount of quantitative easing that has been priced in with the amount that might actually materialize.

The Federal Reserve is taking a layered, wait-and-see approach to its easing program, saying it might ultimately deliver up to $600 billion in asset-purchases over eight months. However, US economic data could drive that amount down substantially.

Quantitative easing, which the market equates with printing money, aims to stimulate a lagging economy but is highly corrosive for a currency.

The past two weeks have been "extraordinary" for the dollar, Spitz said, listing the

Group of 20 summit, the US midterm elections, and the Fed's Nov. 3 announcement of further quantitative easing as the top drivers.

"It all speaks to extreme volatility. And while there is a fair bit of elasticity in the currency market itself, it looks like the dollar is showing signs of bottoming out," he said.

Investors will closely watch data releases this week, including the October consumer price index, producer price index, housing starts and retail sales index for what they say about the health of the US economy and the need to keep the QE taps open. And they will pay close attention to a spate of speeches by Fed officials, searching for clues about the direction of the asset-purchase program.

"The policy divergence between the Fed and the ECB [European Central Bank] is a well-known fact.

What's unknown is how deep the abyss is in Europe. And I think the market needs to discover that," Hoversen said. -Agencies

Oil falls on Beijing rate hike talk, EU concerns IEA trims 2011’s oil demand growth estimate, raises 2010’s NEW YORK: Oil prices slumped more than 3 per cent on Friday, retreating from a 25month high, amid a broad commodities rout on fears that China may raise interest rates to brake its economy and concerns about euro-zone debt.

Profit-taking struck the market as traders said oil's near 8 per cent gain over the past two weeks may have gotten ahead of fundamentals, despite news this week of record Chinese demand in October and big declines in US crude and fuel stocks.

US crude for December delivery fell $2.93, or 3.34 per cent, to $84.88 a barrel, slipping to $84.52 intraday. Prices fell 2.27 per cent on the week, after last week's 6.6 per cent surge.

Total volume topped 771,000 lots with less than an hour left in electronic trading on Friday, above Thursday's 746,068 and 11.5 per cent above the 30-day average.

"I think the $3 drop today was more than corrective. It

feels like the hype of higher prices, which began Nov. 1st, hit the brick wall hard today," Michael Korn, a Princeton, New Jersey-based options broker, said, referring to Saudi Arabia's Nov. 1 indication that $90 oil would be tolerated. "I think today was about longs getting out."

In London, ICE December Brent crude fell $2.47 to settle at $86.34 ahead of Monday's contract expiration.

"Today's sharp price plunge was mainly driven by issues that focused primarily on concerns over Chinese monetary tightening, European sovereign debt issues, mainly related to Ireland, and disappointment regarding the G20 talks," Jim Ritterbusch, president at Ritterbusch & Associates in Galena, Illinois, said in a note.

The International Energy Agency, an adviser to 28 industrial countries, predicted on Friday the rate of oil demand growth will slow in 2011, while raising its 2010 forecast, pro-

Sugar hit by margin spike, EU move NEW YORK/LONDON: Sugar futures were hammered by whole-sale investor liquidation and stop-loss sales on Friday, with raw sugar suffering its biggest 2-day fall in 20 years in a week when the market rallied to a 30-year top.

The raw sugar market suffered in particular from the decision by ICE Futures US to increase margins by 65 per cent to its highest level since 1997.

Coffee and cocoa were punished as well, with investors in the soft commodity complex spooked by talk of possible Chinese interest rates hikes and fears of macro-economic weakness in world financial markets.

"A lot of the (soft) markets were overextended," Nick Gentile, chief trading officer of commodity fund advisors Atlantic Capital Advisors. He particularly cited sugar, which rallied to a 30-year top.

"It's basically panic selling for everyone," he said, adding the news of a spike in raw sugar margins "had a lot to do" with the sell-off in raw sugar.

New York's March raw sugar contract slid 3.45 cents to close at 26.21 cents per lb, the lowest settlement for the spot raw sugar contract since early October.

Combined with Thursday's sharp fall, the March contract had lost a fifth of its value. It was the largest one-day loss for sugar since 2002 and the biggest twoday fall in the market since 1991, according to Thomson Reuters data. The crash was brought into even sharper relief by the fact

that raw sugar prices hit a 30-year high of 33.39 cents this week.

Business in raw sugar hit its highest level since early 2008.

Thomson Reuters preliminary data showed it stood around 300,000 lots and the two day volume hit over 500,000 lots.

London's December white sugar futures stumbled $88.20 or by 11.1 per cent to close at $709.10 per tonne. White sugar futures were hit by news the EU would grant export licenses for up to 350,000 tonnes of sugar in the near future, with losses accelerating as key support levels were breached.

Arabica coffee futures were also hit by the commodity-wide sell-off, with dealers saying the market is overbought after a steep run-up in prices.

London-based dealer said exporters in top robusta producer Vietnam had slowed sales after prices fell back from the highs set earlier this week. New York's March arabica coffee contract tumbled 6.15 cents or 2.9 per cent to finish at $2.0335 per lb.

On Tuesday, the contract ended at $2.1705, its highest settlement finish in 13-1/2 years. London's January robusta futures dropped $56 to close at $1,875 per tonne.

Cocoa futures were also battered by the selling spree. New York's March cocoa contract fell $87 or by 3.0 per cent to finish at $2,779 per tonne, the biggest oneday loss for cocoa since August.

London's March cocoa contract declined 44 pounds to end at 1,827 pounds per tonne, within striking distance of the 15-month low at 1,798 pounds. -Reuters

viding no comfort to traders looking for a more sustained global demand recovery.

"When you look at the fundamentals, although improving during the week, they are not really supporting a very strong increase in oil prices as we have had," said Christophe Barret of Credit Agricole.

While euro zone debt concerns had been overshadowed by news from China and signs of improving fundamentals, commodity markets appeared to pay more heed on Friday.

Other commodity markets also plunged from multi-year highs, with Ireland's debt woes and this week's spate of exchange-imposed higher margin requirements adding to investors' growing risk aversion.

Amid heightened concerns about Ireland, a Group of 20 leaders' summit in Seoul had not attained a breakthrough on resolving global economic imbalances amid incongruent policies. -Reuters

Asian currencies

Mostly log losses for wk, led by Korean won SINGAPORE: Asian currencies fell last week, led by South Korea's won and the Philippine peso, on speculation policy makers around the region will impose controls to temper the effect of surging inflows on their currencies.

Officials from the Group of 20 nations repeated after meetings in Seoul that they will refrain from "competitive devaluations" of their currencies, the same comments that were made last month. South Korea is considering raising taxes or introducing bank levies as possible options to control capital inflows, Shin Hyun Song, presidential adviser for international economy, said at a press conference.

"They were pretty vague in what they promised and nobody was committing to anything specific," said David Cohen, head of Asian forecasting at Singapore-based Action Economics. Policy makers "will continue to resist too rapid appreciation" in their currencies, he said.

The won declined 1.8 per cent last week to 1,127.84 per dollar in Seoul. The Indian rupee slid 1.2 per cent to 44.73, the peso dropped 2.4 per cent to 43.73, and Malaysia's ringgit fell 1 per cent to 3.1170.

Finance ministers from the G-20 will work next year on a set of so-called indicative guidelines designed to identify large economic imbalances and actions needed to fix them, See # 1 Page 11

4 Monday, November 15, 2010

The Financial Daily International Vol 4, Issue 100

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

S. Muneer Hussain Rizvi

Asim Abbas Ashary, CPA

Khurram Shehzad, CFA

Akhtar M. Zaidi, FCA

Prof. Zakaria Sajid (KU)

Dr. A. Hadi Shahid, FCA

Zahid Bukhari SVP HBL (retd)

Muhammad Arif

Ismat Sabir Head office

111-C, Jami Commercial Street 11, Phase VII, DHA Karachi Telephone: 92-21-5311893-6 Fax: 92-21-5388428 URL: www.thefinancialdaily.com Email Address: editor@thefinancialdaily.com

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

Of lasting regional peace Over the last five decades the upcoming generations of Pakistan have been witnessing wars in the vicinity. Incidents of Iraq invading Iran, Iraq invading Kuwait, USSR entering Afghanistan in attempt to gain access to warm waters, US attacking Iraq in search of weapons of mass destruction and US attacking Afghanistan trailing Osama are known to everyone. Whatever maybe the stated motives for these assaults, one point was common, gaining undue advantage.

The other common point is that Pakistan has been dragged into Afghan wars once as friend of Taliban and second as foe. Despite being the worst victim of these wars Pakistan is often accused of being the nursery for the terrorists.

India, despite causing severe collateral damage to Pakistan and committing the worst human rights' violations in occupied Kashmir, accuses Pakistan of cross border terrorism.

The sorriest has been the attitude of the sole surviving superpower. On one hand it terms Pakistan as frontline partner in War on Terror (WoT) but on the other accuses Pakistan of having deep-rooted relationship with Afghan Jehadis. The US wants Pakistan to eliminate Taliban but is actively busy in negotiating a deal with them in Afghanistan. On one side the world in being told about pulling out of Nato forces but on the other there in the US it is being proposed not to withdraw forces in the near future.

The US stance towards India prompts Pakistanis to believe that calling Pakistan a friend is a hoax call. The US considers India its best friend and most dependable business partner and Pakistan is there only to fight a proxy war in Afghanistan. While India is being encouraged to invest and help in the development of Afghanistan, Pakistan is being portrayed as enemy of Afghans --the northern alliance has been calling India a friend and Pakistan a foe recently.

The US administration rewarded India for not joining Iran-Pakistan-India pipeline project by entering into an agreement on nuclear technology for civilian use but denied the same to Pakistan. Now the US has proposed India for a permanent seat at the UN Security Council, fully cognisant of Indian atrocities in occupied Kashmir. The US has already given India the status of regional super power and is also supporting it build its hegemony in the region.

The time has come to go over the relations with the US in the light of recent armament deal with India and back-patting regarding a permanent place in UN Security Council. It is high time for Pakistanis, both the elected government and the military to revisit country's foreign policy.

The ground is being prepared to make Pakistan subservient to the US administration as well as the Indian hegemony. External and internal problems are being created to weaken Pakistan, both militarily and economically.

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.

Taliban has a Message for West W

hen Nato leaders gather for a summit in Lisbon next week, where Afghanistan will top the agenda, they can expect a message waiting for them from the Taliban.

That message may well be a violent demonstration of their staying power, even though Washington and US and Nato commanders have been talking up recent successes in Afghanistan before the summit and a strategy review by President Barack Obama next month.

This comes as many European Nato members begin to look at how long they can keep justifying their commitments to an increasingly unpopular war, and as Obama remains committed to beginning a gradual drawdown of US troops from July 2011 before the 2014 goal set by Kabul to take total security responsibility.

The Taliban have proved in the past they are well aware of the world beyond the deserts and fields of Afghanistan's south and its inaccessible mountains and valleys in the east and north, timing attacks to coincide with major events.

Four suicide bombers attacked the main UN compound in western Herat city last month, an assault the Islamist group said was in response to the UN Security Council renewing the mandate for Nato forces in Afghanistan 10 days earlier.

"From one side, the Taliban would like to show that the United States could not defeat them militarily in the past nine years and from other side want to introduce themselves as an acceptable political force, too," said Ghulam Jelani Zwak, director of the Afghan Analytical and Advisory Centre.

On Saturday, as many as 14 Taliban fighters staged a bold assault on an air-

port and Nato base in Jalalabad in the east. At least 10 insurgents were killed, witnesses and police said.

The day before that, a suicide car bomber attacked a Nato convoy on Kabul's outskirts, wounding two soldiers, the first attack in the city in three months.

These extend a recent pattern of daring attacks by Taliban-led insurgents, including a massed raid by up to 80 fighters on a Nato outpost in southeastern Paktika province at the start of November, a different tactic to the usual Taliban hit-and-run raids.

extra troops -- meant to push insurgents to the negotiating table -- would be followed by the drawdown from July 2011.

"This announcement created the morale among the opponents that America is facing defeat and will leave Afghanistan, and if Americans leave, then the Taliban should present themselves as an alternative to the current government," he told Reuters.

Violence is at its worst across Afghanistan since the Taliban were overthrown by US-backed Afghan forces on Nov. 13, 2001, with military

“

That message may well be a violent demonstration of their staying power, even though Washington and US and Nato commanders have been talking up recent successes in Afghanistan before the summit and a strategy review

by President Barack Obama next month.

At least 15 insurgents were killed in a pitched battle after a similar attack on a patrol in southern Helmand on Thursday.

At the same time, the insurgents' political rhetoric has become more moderate and more frequent, just as Washington and Nato have been talking up their gains. Analysts say the Taliban are trying to position themselves as a legitimate political alternative.

MORALE BOOST Zwak traces the Taliban response back to Obama's announcement last December that a "surge" of 30,000

and civilian casualties at record levels and support for the war sagging in Washington and European capitals.

Recent weeks have seen a wider acceptance of the need for a negotiated settlement to the conflict, with reports emerging of contacts between the Afghan government and senior Taliban leaders to explore the possibility of talks.

"The Taliban show considerable prowess in the arts of propaganda," said Matt Waldman, an analyst at Havard University who has been in contact with the Taliban and was a security adviser for the British and

European parliaments.

"Their most important statements seek to mobilise Afghan support for the Taliban, and increasingly, to undermine Western support for the war and counter concerns about the movement," Waldman said.

Among the most important of recent political messages was one attributed to the Afghan Taliban's reclusive, oneeyed leader, Mullah Mohammad Omar, in September.

It assures Afghans of good governance, a Taliban government run by a consultative body based on "talent and honesty" and spoke of unity and the rights of tribes and women.

During their austere five years in power, the Taliban denied women the right to work outside the home and made them wear the all-enveloping burqa, drawing wide international criticism.

Omar's message even spoke of the need to address pollution and to combat the trade in illegal drugs.

Afghanistan produces 90 per cent of the world's opium used to produce heroin, an illicit trade that helps fund the insurgency.

The Taliban also criticise President Hamid Karzai for what they say is the endemic corruption in his government.

The West argues that corruption inhibits the growth of state institutions and aids the insurgency.

The Taliban's last message was addressed to the US Congress last weekend, when Obama was in India, after Obama's Democrats suffered major reversals in US mid-term elections.

"Will you be able to obtain your long-term goals in the region only through the war in Afghanistan?" it asked.-Reuters

Business & Pilgrimage S

itting in the marble lobby of a luxury hotel in Mecca, Moroccan bank director Mohammad Hamdosh gets a breather from the cacophony of pilgrims bustling around the Grand Mosque in the holiest city.

Millions have flocked to the city in Saudi Arabia for the annual Hajj pilgrimage, a duty for every able-bodied Muslim who can afford it. But some can afford more than others, and a controversial construction boom is catering to their needs.

"Every pilgrim comes according to his means. God gave me money, so why shouldn't I stay in this hotel?" says Hamdosh, on a trip that has cost him 12,000 Euros ($16,545). "Hajj is tiring so it's good to have a room to rest."

Inside the mosque, all pilgrims are equal as they circle the the Kaaba.

But outside an array of towering five-star hotels have sprung up where the wealthy can bask in a 24-hour view of the Kaaba. The high-rises dwarf the mosque and the surrounding town, nestled in the mountains in the hinterland of the port city Jeddah.

It is part of a wider project to expand the mosque and bring more Muslims to the holy city for salvation, according to the writs of Islam -- something Saudi Arabia sees as its duty.

Mecca has just inaugurated the world's largest clockface perched Big Ben-style on the front of a high-rise hotel facing the Kaaba, while some 20 cranes next to the mosque herald more luxury accommodation.

The spending spree in Mecca and the second holy city Medina is valued at some $120 billion over the next decade and at present there are $20 billion of projects underway in Mecca alone, according to Banque Saudi Fransi. A square metre land in Mecca costs some 50,000 riyals ($13,333).

"If people are in a good position they should stay close to the mosque," said Farhad Yaftali, a 25-year-old pilgrim from an five-strong Afghani business family in Dubai who paid $15,000 each. "It's good to have a room to rest and do wudu (ablution)," he said, sipping tea in the cafe of the same five-star hotel.

The Saudi government is

proud of the development, made possible by the country's vast wealth accrued from its oil resources. The work is the latest stage in mosque expansions to accommodate pilgrims that stretch back decades.

"In the past 10 years, we've seen a big rise in pilgrims. This year the number of pilgrims will rise by 20 per cent,"

MECCANS ANGRY, POWERLESS Many Saudi intellectuals, mainly from the Mecca region, are disturbed by the government's plans, which diplomats in Riyadh say have been approved only by senior clerics away from public scrutiny.

Saudi newspapers and Islamist blogs have engaged in some debate about the building frenzy, but no criticism comes from the top Saudi scholars who are allies to the Saudi royal family in governing the kingdom -- which has no elected parliament.

"One cannot help but feel sad seeing al-Kaaba so dot-small between all those glass and iron giants," said novelist Raja Alem, whose recent novel Tawq al-Hamam (The Doves Necklace) exposes destruction of historic areas, corruption and abuse.

"Long before Islam, Arabs didn't dare live in the circle of what we call 'al-haram', meaning the sacred area (of the mosque)," she said.

"They spent their days in the holy city and moved out with nightfall.

They thought their human activities defile God's home."

The rites of pilgrimage reinforce this sense of humility before God. Men wear two sim-

The spending spree in Mecca and the second holy city Medina is valued at some $120 billion over the next decade and at present there are $20 billion of projects underway in Mecca alone, according to Banque Saudi Fransi. A square metre land in Mecca costs some 50,000 riyals ($13,333).

Interior Minister Prince Nayef bin Abdulaziz told a news conference in Mecca this week.

"Work to further improve the level of services to pilgrims of the House of God is continuing," he said. Hoteliers say they expect more than three million pilgrims, maybe even four.

ple pieces of white cloth and women avoid perfumes.

Hoteliers say the government bans some displays of luxury such as swimming pools -- yet the new Makkah Clock Royal Tower Hotel will boast two topnotch spas (www.fairmont.com/makkah).

"The notion of filling Mecca's sky line with modern skyscrapers is not only undermining the Kaaba, it is a clear material symbol of a massive cultural and social deletion the city has experienced," said Saudi columnist Mahmoud Sabbagh.

"The replacement of the old city has taken with it centurieslong preserved traditions in academic, social, and cultural systems and mechanisms. The whole cultural paradigm has been damaged," he said.

In recent decades many old houses have been torn down in Mecca to allow better access to the haram, making way for malls, hotels and huge underground parking areas. Locals are compensated for houses they lose.

Irfan al-Alawi, an Islamic theology professor based in London, said the Vatican would never sanction such work in its own sacred precinct.

The government should use space outside the city to build hotels, he said: "Mecca doesn't have to look like Manhattan or New York".-Reuters

Good for Globe, Bad for US, China T

his fall, much of the United States seemed to have settled on a narrative for the country's struggle to adapt, after a debilitating financial crisis, to a post-industrial and post-unipolar global economy: China and its overvalued currency are largely to blame.

Proof that this was a nationally compelling storyline came during the acrimonious midterm election campaign. US politics have rarely been more polarised, but complaining about China was something both parties could agree on.

John Boehner, the presumptive new Republican Speaker of the House, attacked the Democrats for "a stimulus that shipped jobs overseas to China instead of creating jobs here at home."

Harry Reid, the Nevada Democrat who hung on to his Senate seat and his job as Majority Leader, accused his Tea Party opponent Sharron Angle of being "a foreign worker's best friend" for supporting corporate tax breaks that helped businesses outsource jobs to China and India.

This rare bipartisan consensus is why Americans were astonished to discover, when the Group of 20 gathered in South Korea this week, that in much of the rest of the world, it is the US that is seen as the world's rogue economic player.

That sentiment erupted with particular intensity in the wake of the Federal Reserve's decision to pump $600 billion into the economy, a measure emerging market leaders worry will release a flood

of money into their countries and which Europeans fear will bring inflation. But the rest of the world's complaints about the US run deeper than Fed chairman Ben Bernanke's resort to quantitative easing.

The US criticism of China rests on a fundamental critique of its economic

the "blame America" one-are right. We are at a turning point in the world economy, one comparable to the global grinding of gears around the time of the two world wars. At this complicated and volatile moment, it just so happens that the world's two most important econom-

“

Proof that this was a nationally compelling storyline came during the acrimonious midterm election campaign.

US politics have rarely been more polarized, but complaining about China was something both parties could agree on.

model - an authoritarian system which suppresses domestic demand and artificially lowers the price of its exports.

Critics of the United States likewise have begun to articulate a systemic challenge to how the US economy works.

That view is behind the declaration by China's leading state-backed rating agency that there are "serious defects in the United States development and management model." Germany has been equally forthright. Finance Minister Wolfgang Schauble told Der Spiegel: "The American growth model is ‌ stuck in a deep crisis."

The tricky truth is that both perspectives-the "blame China" paradigm, and

ic players-the US and China-aren't fully in sync with everyone else.

Mohamed El-Erian, the CEO of bond giant Pimco, and a former International Monetary Fund economist, described the problem to me thus: "National responsibilities are conflicting with global responsibilities for both the US and China. That is a real problem for the global economy."

Seen from this perspective, China and the US, so often framed as rivals, actually look like twins. Both countries are preoccupied with domestic growth: China sees itself mainly as a poor country that needs to get richer, while the US is grappling with a painfully slow recovery

from the financial crisis. But the chosen paths to growth at home in each of these countries - a weak currency and an export-led economy for China; monetary expansion and perhaps a weaker currency for the US, too - are unwelcome in much of the rest of the world.

That clash, Mr. El-Erian fears, "will lead to increasingly inward-looking social and political reactions" in many countries. That's a problem, he thinks, because today's global economy is designed to be open: "our globalised world is now hardwired to be outwardoriented."

Poor countries are accustomed to being told by outsiders what they need to do at home if they want to participate in the global economy; in fact, that's one way you could define the historic role of the IMF. What is different today is that the world's dominant economy and its rising one are the two countries whose domestic priorities are causing the greatest disruption for the rest of the world.

Small countries are used to accommodating big ones. But big countries are accustomed to setting the rules. El-Erian believes that "we will be writing about this period as an historic time of fundamental global re-alignment." A big part of that realignment is figuring out how to balance national needs against global ones, and doing that turns out to be especially hard if you are used to determining the international rules of the game.

5

Monday, November 15, 2010

GM seen pricing at top end, full over-allotment: Sources

Asian stocks decline as China's inflation spurs rate speculation

Weekly Review

KSE runs between red, green in gone wk

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

10,882.00 10,874.02 7.98 0.07 664.59

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

3,410.64 3,392.58 18.06 0.53 33.89

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

2,773.37 2,766.91 6.46 0.23 1.77

Nawaz Ali

Major Gainers

Symbol RMPL UPFL INDU BHAT COLG

Close

Change

1,989.00 1,083.65 260.34 215.00 841.06

130.53 33.65 25.05 24.60 19.23

Major Losers

Symbol

Close

Change

BATA 623.71 ULEVER 4,050.00 NESTLE 1,943.40 WYETH 821.00 SIEM 1,271.00

-54.77 -50.00 -31.06 -29.00 -27.20

Top 5 Volume Leaders

Symbol

Close Vol (mn)

LOTPTA JSCL DGKC TRG AHSL

12.05 11.76 28.40 4.31 25.16

79.64 76.09 36.39 35.64 30.97

Active Issues Plus Minus Unchanged

196 207 14 NEW YORK: Luis Tellez Kuenzler, BMV Group Chairman and President of Bolsa Mexicana De Valores (BMV- The Mexican Stock Exchange), speaks during a news conference.-Reuters

Sector Updates FERTILISER

Wall Street weekly outlook

000 tonnes

Urea Offtake (Jan to Sep 10) 4,190 Urea Offtake (Sep 10) 324 Urea Price (Rs/50 kg) 851 DAP Offtake (Jan to Sep 09) 680 DAP Offtake (Sep 10) 226 DAP Price (Rs/50 kg) 2,628

AUTOMOBILE ASSEMBLER PAK SUZUKI MOTOR Units Production (July 10 to Oct 10) 26,842 Sales (July 10 to Oct 10) 25,279 Production (Octy 10) 7,311 Sales (Oct 10) 7,459

INDUS MOTOR CO Production (July 10 to Oct 10) 17,013 Sales (July 10 to Oct 10) 16,622 Production (Octy 10) 4,827 Sales (Oct 10) 4,830

HONDA ATLAS CAR Production (July 10 to Oct 10) Sales (July 10 to Oct 10) Production (Octy 10) Sales (Oct 10)

5,481 5,172 1,514 1,340

DEWAN FAROOQ MOTORS Production (July 10 to Oct 10) Sales (July 10 to Oct 10) Production (Octy 10) Sales (Oct 10)

186 70 0 18

BANKING SECTOR Scheduled bank (Rs in mn) Deposit (Nov 6,10) Advances (Nov 6,10) Investments (Nov 6,10) Spread (September 10)

4,729,932 3,011,868 1,897,426 7.57%

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

744 198 53 15 452 122 2,182 664 22 6 3,086 854 3 1

PRICES (Ex-Refinery)

Rs

MS (1 Nov 10) MS (1 Oct 10) MS % Chg Kerosene (1 Nov 10) Kerosene (1 Oct 10) Kerosene % Chg JP-1 (1 Nov 10) JP-1 (1 Oct 10) JP-1 % Chg HSD (1 Nov 10) HSD (1 Oct 10) HSD % Chg LDO (1 Nov 10) LDO (1 Oct 10) LDO % Chg Fuel Oil (1 Nov 10) Fuel Oil (1 Oct 10)

44.53 40.71 9.38% 51.25 47.31 8.33% 51.48 47.54 8.29% 54.24 50.38 7.66% 49.51 46.13 7.33% 42,046 39,276

Taxes, inflation data to dominate the week NEW YORK: Without a boost from Washington policymakers or data showing budding strength in the economy, Wall Street's rally may be running out of fuel as the S&P 500 eases off its 2010 high.

A data-heavy week could give investors hard evidence to justify a rally that lifted the S&P 500 16.8 per cent from its August 31 close to the 2010 closing high hit last week.

But the index has been unable to move above 1,228, a key resistance level, and its chart is brewing a double-top formation, a very bearish signal.

"We're susceptible to a pullback if we don't get any clarity on fiscal policy and if any of this economic data disappoints this week," said John Lynch, chief equity strategist at Wells Fargo Funds Management in Charlotte, North Carolina.

"I would think you're going to see some, not all, smart money pull their investment (out of stocks) the closer we get to 1,228. These guys recognize we still have above 9 per cent unemployment, sovereign credit risks, a consumer deleveraging and no clarity as to what businesses should do with their cash."

For the week, the Dow Jones industrial average and the Standard & Poor's 500 index each fell 2.2 per cent.

The Nasdaq Composite index lost 2.4 per cent.

The S&P 500 brushed the 61.8 per cent retracement of its slide from the historic highs in 2007 to the low in March 2009.

This was the second time the index backed away from the 1,228 area and its chart could be drawing a bearish "double top" formation. The last retreat from that level, in April, was the start of a cor-

rection that took the S&P to its 2010 low in July.

The S&P 500 dipped on Friday below its 20-day moving average for the first time since Sept. 1 but managed to close above it in a sign that that level, currently just above 1,194, could provide strong technical support.

LET'S TALK ABOUT TAXES Investors will closely watch a meeting this Thursday between US President Barack Obama and congressional leaders to discuss policy, including tax cuts.

Republicans will take control of the House of Representatives starting in January following their strong gains in the Nov. 2 elections.

They have vowed to force a full extension of all tax cuts enacted during the administration of President George W. Bush. Otherwise, the tax cuts expire at the end of 2010.

Most of Obama's Democrats favor extending tax cuts only for the first $200,000 of income of individuals and $250,000 for families.

"Bush tax cuts are very important for the market," said Michael Yoshikami, president and chief investment strategist at YCMNET Advisors in Walnut Creek, California.

"If they're not renewed, that could cost 0.75 percentage point per year in GDP (growth). I don't think any other proposal would have that kind of significant impact. If dividend taxes were raised, that would be a still important but more minor issue," he said.

Many Democrats argue that renewing all the tax cuts would swell the record US budget deficit and have little, if any, impact on cutting the high unemployment rate.

DATA BACK ON THE

TABLE Following a week in which the few macroeconomic indicators barely influenced stocks, a slew of data ranging from manufacturing to leading indicators to retail sales, and, perhaps most importantly, inflation, will return investors' attention to market fundamentals.

Producer prices are expected to have risen 0.8 per cent month-over-month in October. The US government measure, out on Tuesday, could add to concerns following September's rise, which was twice what analysts expected. With little leverage to pass on costs to cashstrapped consumers, businesses may have to swallow any price hikes, weakening margins and profits.

The year-on-year consumer prices index, due on Wednesday, is expected to show a dip to 0.7 per cent from 0.8 per cent in September when food and energy prices are excluded.

Consumer staple companies highlighted "concerns about rising commodity costs and to what extent are businesses able to pass costs through the chain," said Wells Fargo's Lynch.

He pointed to businesses willing to absorb much of those price hikes, "which would be consistent with my perception that earnings and margins estimates for next year are too high."

On Monday data could show retail sales gained in October, while a separate report on September inventories could detail unwanted supply piling up at businesses.

Federal Reserve Chairman Ben Bernanke could provide a signal on the strength of the Fed's bond-buying commitment in remarks in Frankfurt on Friday. -Reuters

KARACHI: Apex index at Karachi Stock Exchange (KSE) shuttled between red and green last week amidst a host of apprehensions.

The mixed movement came on the "hoofs" of some early bullruns with 100-Index crossing the mighty barrier of 11,000 points level after 26 and a half months during the daytrade which, it failed to sustain.

At high levels investors booked profits on fears of upshooting inflation, and Reformed GST (RGST) approval by the Federal Cabinet, In addition to that upcoming Eid-ul-Adha holidays as well kept them out of the bourse and into the sacrificial animal's makeshift markets.

The benchmark KSE 100Index lost 7 points to close at 10,874 points while it tested the highest and the lowest levels of 11,047 and 10,853 points respectively.

KSE 30-Index shed 13 points to close at 10,461 level and KSE All Share Index gained 2 points to end at 7,564 points.

About 664 million shares traded during the week --higher by 48 million shares compared to a turnover of 616 million a week earlier. Out of total 417 active issues 207 declined and 196 advanced while 14 issues remained unchanged.

"Initially, the market carried forward the positive momentum of previous week, however fears over higher inflation numbers and uncertainties arising about the imposition of the RGST cast negativity in the minds of the investors", said Saeed Khalid analyst at Invest Cap. Further, dent to investor's confidence came from terrorist attack in the metropolitan, he added.

It should be noted that at least 15 people were killed and 100 injured in a suspected Taliban suicide car bomb attack on

Thursday at the building of Crime investigation Department (CID) in Karachi.

The week started with some bullish activities on Monday where index after a period of more than 26 months crossed 11,000 levels due to continued foreigners interest and higher international commodity prices with crude oil prices at their two-year high above $87 a barrel. Further, news of concord between IMF and Pakistan along with some positive statements

by US President Obama for during his visit to India too supported the rally. However index failed to sustain 11,000 levels on closing basis and ended the day with a gain of 110 points.

After a public holiday on Tuesday, market witnessed some profit-taking during the last three days of the week ending on a negative note as investors were concerned over approval of RGST/ flood surcharge.

Moreover fears of higher inflation were also running high and a deadly blast near the end of the week came as the bold from the blue to hit the already down sentiments.

The Federal Cabinet approved the RGST Bill for tabling in the NA along with a 10 per cent flood surcharge on existing tax liabilities for all taxpayers earning more than Rs25000 a month.

The bill was tabled in the National Assembly and Senate, and was subsequently forwarded to the respective standing committees for approval by Nov 22.

Investor-interest thinned during the last two days, as participants mulled over the effect of the flood tax on corporate profitability and RGST on securities' transaction.

Finally, foreign investors remained on the buying side as according to NCCPL there was a net foreign buying of $9 million shares last week while local banks did a net-selling of $9.2 million.

UAE bourses end lower on global concerns DUBAI: UAE bourses retreated, tracking a slump in global markets, as selling pressure continued on the last day of trading before the long Eid holidays.

Global markets fell on Friday on fears China may raise interest rates while Ireland's dubious debt position forced European leaders to leap to Dublin's defence.

In Dubai, developer Emaar Properties lost 0.8 per cent and builder Arabtec dropped 1.6 per cent, weighing on broader index DFM that slipped 0.3 per cent ending at 1,687 points.

Abu Dhabi's Aldar Properties gained 2.7 per cent, bucking the trend, with most other stocks slipping. The index ADI lost 0.4 per cent ending at 2,749 points.

Qatar's benchmark QSI ended slightly higher in a day of lacklustre trading, as investors remained on the sidelines ahead of the Eid holidays.

Shares of heavyweight Industries Qatar slipped as investors booked profits.

"We are seeing profit-taking on Industries Qatar, as it has been one of the strongest performers in Qatar, up 8 per cent in the last five days," said Robert Pramberger, acting head of asset management at Dohabased Investment company.

The First Investor.

Industries Qatar dropped 1.2 per cent.

"Effectively it was a quiet day and trading was on low volumes."

Qatar Telecom gained 1.1 per cent and Qatar National Bank added 0.8 per cent, lifting the index by 0.1 per cent to end at 8,084 points.

Oman's index dropped, as bank stocks led a decline.

National Bank of Oman fell 1.4 per cent and Bank Muscat lost 1.2 per cent.

The index MSI slipped 0.2 per cent to end at 6,607 points. -Agencies

Dhiyan

REIN IN YOUR HORSES ON A GREEN DAY Tariq Hussain Khan, Head of Portfolio & Research United Capital Some mixed activities are expected in the market before Eid holidays. But after that we might see ministry of bears bearing on tearing index down to 10,500 points level, tanks to uncertainty regarding RGST, flood surcharge and their impact on economy --if implemented. On the other hand tension between political parties on the same would also hurt the market. However, technically market has a strong support at 10,500 points and from this level we might see a rally and new highs by Nov-end. Investors should go for dividend-yielders in E&P and fertiliser sectors for long-term while for shortterm cements and banks are good. Market would be positive today.

Mohsin Adhi, Director Alfa Adhi Securities Market is likely to remain dull during the two trading sessions ahead of Eid and even after the vacations we would see the pressure persisting in the market over uncertainty mainly regarding RGST implementation and anticipation of a raise in the State Bank interest rate in the coming monetary policy.

Investors are advised to adopt “wait & see� stance for buying and they better offload their positions at higher levels.

6

Monday, November 15, 2010

Market 664,586,683

Value

24,069,608,681

Trades

325,191

Paid up Cap(mn)

Advanced Declined Unchanged Total

196 207 14 417

Current High Low Change

All Share Index

10,874.02 11,047.30 10,853.11 i7.98

Current High Low Change

KSE 30 Index Current High Low Change

7,564.19 7,677.98 7,550.15 h2.09

INDUSTRIAL TRANSPORTATION

Performance of SR Oil and Gas Index

Performance of SR Industrial Transportation Index

PE

Open

High

High Low 1,428.45 1,396.74 Total cos Defaulter cos P/BV (x) ROE (%) 3.40 32.54 Low

Close Chg

Close Change % Change 1,401.64 -0.68 -0.05 Listed cap Market cap 200-Day High 65,194.15 mn 1,098,065.62 mn 1,415.31 Payout (%) Div Yield (%) 200-Day Low 55.94 5.35 1,401.64 Last 60 days High Low

Volume

Open 749.62 Turnover 243,236 P/E (x) 5.76

2009 Div BR (%) (%)

2010 Div BR (%) (%)

Company Pak Int Cont. Terminal PNSC

Paid up Cap(mn)

High Low 783.58 740.55 Total cos Defaulter cos P/BV (x) ROE (%) 1.47 25.53

Close 754.81 Listed cap 3,242.17 mn Payout (%) 11.08

Open

High

Low

Close Chg

Volume

Last 60 days High Low

RSI (14-day)

55.71

Total Assets (Rs in mn)

12,372.62

1092

7.29

71.93

76.50

71.52

72.88

211791

80.00

60.05

-

20B

40

-

MA (10-day)

15.26

Total Equity (Rs in mn)

6,785.66

1321

41.09

38.38

38.98

36.66

37.80 -0.58

31445

41.00

34.50

30

-

15

-

MA (100-day)

15.65

Revenue (Rs in mn)

2,170.95

MA (200-day)

19.46

Interest Expense

1st Support

15.35

Profit after Taxation

2nd Support

15.16

EPS 09 (Rs)

1st Resistance

15.74

Book value / share (Rs)

22.62

2nd Resistance

15.94

PE 10 E (x)

40.37

Pivot

15.55

PBV (x)

691

5.24 304.93

322.75 301.00 302.49 -2.44

2771759 374.20

287.99

250

-

300

20

853

6.89 120.22

129.70 120.10 122.94

11940768 129.70

76.00

-

-

-

-

Mari Gas Company

735 16.09 123.76

125.90 118.30 118.72 -5.04

235242

106.00 32.17 100B

31

-

National Refinery XD

800

263.00 239.00 252.79 17.94

1282472 263.00

183.25

125

-

200

-

AUTOMOBILE AND PARTS

160.20 157.00 158.40

2112706 160.20

136.11

82.5

-

55

-

Performance of SR Automobile and Parts Index

20B

3.75 234.85

Oil & Gas Development 43009 10.72 158.34 Pak Petroleum

0.06

11950

7.76 192.01

196.44 190.50 190.89 -1.12

2365

5.90 256.02

262.40 249.25 249.98 -6.04

Pak Oilfields XD Pak Refinery Limited

350

P.S.O

1715

-

82.23

4.72 282.38

Shell Gas LPG

226

-

37.13

Shell Pakistan

685 10.05 200.04

87.39

80.61

81.11 -1.12

286.97 278.60 279.05 -3.33 37.80

34.80

35.00 -2.13

203.89 195.50 196.00 -4.04

2815058 214.10 8741268 262.40

168.70

130

20B

90

213.17

180

-

255

-

87.39

48.26

-

-

-

-

3710844 286.97

233.10

50

-

80

-

227061 13826

40.28

27.32

-

-

-

-

143223

220.00

182.05

330

-

40

-

CHEMICALS

Company

Performance of SR Chemicals Index Open High Low 1,215.52 1,253.57 1,211.81 Turnover Total cos Defaulter cos 129,271,866 P/E (x) P/BV (x) ROE (%) 7.69 2.69 35.00 Company

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Open 1,102.84 Turnover 1,724,095 P/E (x) 4.08

Close 1,224.97 Listed cap 52,251.88 mn Payout (%) 48.81

Change % Change 9.45 0.78 Market cap 200-Day High 274,825.79 mn 1,235.94 Div Yield (%) 200-Day Low 6.34 1,215.52

Last 60 days High Low

Volume

2009 Div BR (%) (%)

2010 Div BR (%) (%)

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

Paid up Cap(mn)

PE

Open

144 5.11 66.93 101 4.67 155.26 626 6.82 105.00 890 1.40 598 19.27 21.80 450 3.34 5.11 1428 - 11.99 786 5.94 235.29 823 11.69 73.04 150 3.60 18.84

High

0.95

High Low 1,182.12 1,087.62 Total cos Defaulter cos P/BV (x) ROE (%) 1.03 25.35 Low

Close Chg

69.00 66.01 67.50 0.57 159.90 155.25 156.50 1.24 107.00 96.00 97.96 -7.04 1.48 1.20 1.45 0.05 22.89 21.75 22.35 0.55 5.48 4.70 4.81 -0.30 13.30 11.50 13.11 1.12 263.60 231.00 260.34 25.05 76.90 72.05 73.41 0.37 19.50 18.70 19.28 0.44

Close 1,162.27 Listed cap 6,768.53 mn Payout (%) 20.42

Volume

63.01 131.00 92.00 1.16 21.00 4.03 9.65 212.29 69.25 17.92

3924

7.97

-

FOOD PRODUCERS

Biafo Ind

200

4.73

46.40

43.50

43.10

43.50 -2.90

10027

46.40

31.64

40

-

45

-

BOC (Pak)

250 10.44

76.75

78.00

75.02

76.02 -0.73

15396

87.99

66.90

90

-

15

-

Performance of SR Food Producers Index

Agritech Limited

Clariant Pak

21.94

22.49

20.26

22.00 0.06

273

5.81 155.37

158.00 152.00 152.05 -3.32

Dawood Hercules

1203

7.00 170.93

175.00 168.50 168.83 -2.10

Dewan Salman

3663

Engro Corporation Ltd

3277

Fatima Fertilizer

22000

Fauji FertilizerSPOT

6785

-

1.58

9.79 180.38 -

9.71

7.97 108.53

Fauji Fert. Bin Qasim

9341

6.23

ICI Pakistan

1388

7.48 133.80

Lotte Pakistan

32.10

1.72

1.55

1.67 0.09

185.59 177.80 178.18 -2.20 10.29

9.75

9.87 0.16

111.65 108.00 109.96 1.43

40

-

-

-

-

6306459 185.59

165.60

6312420

11.74

-

-

102.96 131.5

40

-

-

-

95

-

55

-

2.50

1.21

1.62

1.40

3459501 111.65

6010B 40R

9.02

79638911 12.18

7.30

1.65 -0.39

291101

3.00

0.80

-

-

-

-

1.41 0.00

1370472

1.65

1.16

-

-

-

-

117.90 104.50 116.08 7.58

15362

5

-

-

-

127.20

101.00

75

-

25

5B

14.48

13.15

14.23 1.18

4400392

14.48

7.67

-

-

-

-

35.00

32.00

32.90 -1.16

26707

46.25

32.00

50

-

50

-

FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,087.09 Turnover 132,214 P/E (x) 5.50 Company

High Low 1,102.79 1,062.93 Total cos Defaulter cos P/BV (x) ROE (%) 0.41 7.47

Close 1,064.98 Listed cap 1,186.83 mn Payout (%) 25.28

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

707

-

16.74

17.19

16.00

16.10 -0.64

119460

Century Paper Pak Paper ProductXDXB Security Paper

Change % Change -22.11 -2.03 Market cap 200-Day High 2,951.35 mn 1,087.09 Div Yield (%) 200-Day Low 4.60 1,064.98

Last 60 days High Low 21.80

2009 Div BR (%) (%)

15.28

- 425R

2010 Div BR (%) (%) -

Open 1,516.88 Turnover 1,863,287 P/E (x) 31.15

-

17.5

1.41

34.06

-

10B

-

-

2.04

6.33

-

40

-

-

90

125

1.28

10B

-

Wah-Noble XD

149.72 155.38

1.82

40

74

13.05

164.89 182.00

80

1106

9.51 108.50

36986 131452 1378206

26.59

12.05 0.55

551 15.47

-

113.00

11.50

214

-

13659374 33.70

12.18

Sitara Peroxide

-

2728553 138.00

32.20

11.50

Sitara Chem Ind XDXB

20.26

33.01 0.91

33.70

4.30

Mandviwala

25.38

138.00 132.00 132.70 -1.10

15142

Nimir Ind Chemical

15464

Company AL-Noor Sugar Chashma Sugar Dewan Sugar Habib Sugar Habib-ADM Ltd J D W Sugar Mehran Sugar Mirza Sugar Mithchells Fruit National Foods Noon Pakistan XD Noon Sugar Pangrio Sugar Premier Sugar Punjab Oil Quice Food S S Oil Sakrand Sugar Sanghar Sugar Shahmurad Sugar Shakarganj Mills

Paid up Cap(mn) 186 287 365 600 200 490 143 141 50 414 48 165 109 38 38 107 57 223 119 211 695

PE 4.83 1.08 7.11 11.85 2.64 3.36 0.36 8.18 15.99 3.02 0.51 7.71 2.95 0.27 1.00 18.48 -

50

7.72

40.01

40.39

39.01

40.15 0.14

5223

62.85

38.61

20

-

25 33.33B

6.02

39.40

39.80

39.00

39.00 -0.40

7531

48.00

38.10

50

-

50

Company

Paid up Cap(mn)

PE

565

Dost Steels Ltd

675

-

3.01

3.23

Huffaz Pipe

555

9.49

13.94

15.50

1199

9.34

25.00

High

Crescent Steel

International Ind

3.84

Open

45.22

25.50

46.49

Low 24.60

Close Chg

Change % Change -13.11 -1.41 Market cap 200-Day High 8,718.96 mn 927.30 Div Yield (%) 200-Day Low 12.63 914.19

Last 60 days High Low

Volume 154042

2.81

2.91 -0.10

127735

3.39

1.65

-

-

-

-

14.00

15.18 1.24

161795

16.75

12.25

-

30B

-

-

44.83 -0.39

128817

23.75

65.00

-

44.00

-

-

2010 Div BR (%) (%)

24.60 -0.40

44.53

27.90

2009 Div BR (%) (%)

-

30

40

Open 1,137.82 Turnover 2,697,302 P/E (x) 3.75 Company

Company

Paid up Cap(mn)

Al-Abbas Cement

PE

Open

High

Low

Close 986.94 Listed cap 54,792.74 mn Payout (%) 19.04

Close Chg

Volume

Last 60 days High Low

2009 Div BR (%) (%)

1828

-

3.04

3.39

3.05

3.21 0.17

141297

4.20

2.80

-

-

Attock Cement

866

6.40

61.66

64.84

60.53

60.84 -0.82

313572

69.86

57.60

50

20B

Berger Paints

182

-

17.35

19.20

16.55

17.35 0.00

88642

19.20

14.01

-

-

Cherat Cement

956 28.00

11.91

12.75

11.62

12.32 0.41

265523

12.75

9.51

-

-

-

-

Dadabhoy Cement

982 13.08

1.60

1.70

1.51

1.70 0.10

17449

2.20

1.30

-

-

-

-

Dandot Cement

948

-

2.40 0.11

22423

3.12

1.02

-

-

-

Dewan Cement

3574

-

1.46

1.79

1.48

1.61 0.15

787449

1.99

1.30

-

-

-

-

3651 118.33

29.03

31.05

28.15

28.40 -0.63

36390500 31.05

23.02

-

20R

-

20R

Fauji Cement

6933 15.03

Flying Cement Ltd Frontier Ceramics Gharibwal Cement Haydery Const

2.85

1.50

-

- 122R

DG Khan Cement Ltd Fecto Cement

2.29

- 100R 50

-

4.91

5.35

4.91

4.96 0.05

5399146

5.50

4.52

-

-

-

-

502

3.75

7.10

7.94

6.52

7.20 0.10

38121

7.94

4.25

-

10B

-

-

1760

-

1.89

1.97

1.72

1.77 -0.12

440379

2.20

1.72

-

-

-

-

77

-

2.95

3.01

1.18

2.46 -0.49

16472

5.00

1.18

-

-

-

-

2319

-

3.44

3.79

3.20

3.20 -0.24

26613

6.69

2.11

-

-

-

-

32

-

0.63

0.73

0.57

0.60 -0.03

39015

1.48

0.25

-

-

-

-

186445

6.50

5.50

-

-

-

-

26581585 79.98

64.30

40

-

40

-

Kohat Cement

1288

-

6.15

6.47

6.15

6.21 0.06

Lucky Cement XD

3234

6.54

73.18

79.98

71.86

72.84 -0.34

Maple Leaf Cement

5261

1.31

2.86

3.08

2.80

2.81 -0.05

1402914

3.40

2.51

-

-

-

-

Pioneer Cement

2228

-

7.53

8.15

7.40

7.43 -0.10

358135

8.58

6.90

-

-

-

-

200

-

6.09

6.60

5.25

5.61 -0.48

18113

9.47

5.25

-

-

-

-

Safe Mix Concrete

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 939.08 Turnover 839,932 P/E (x) 2.66 Company

Paid up Cap(mn)

High Low 960.51 919.28 Total cos Defaulter cos P/BV (x) ROE (%) 1.17 43.91

Close 926.02 Listed cap 3,043.31 mn Payout (%) 15.55

Change % Change -13.05 -1.39 Market cap 200-Day High 34,657.51 mn 947.54 Div Yield (%) 200-Day Low 5.85 926.02

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

2009 Div BR (%) (%)

2010 Div BR (%) (%)

Cherat PapersackXDXB

115

1.92

51.04

55.00

52.00

53.85 2.81

318673

55.00

34.00

-

-

20

ECOPACK Ltd

230

-

2.00

2.25

1.91

1.94 -0.06

63948

2.64

1.70

-

-

-

-

1067

4.45

49.75

49.79

48.40

48.40 -1.35

5350

61.99

45.75

30

10B

25

10B

Ghani GlassXDXB Packages Ltd Siemens Engineering

844 54.23 106.46

108.00 104.05 105.75 -0.71

82 10.49 1298.20 1364.00 1260.00 1271.00-27.20

317475 5198

122.99

25B

98.00

32.5

-

-

-

1364.00 1068.75

900

-

900

-

INDUSTRIAL ENGINEERING

Pak Elektron Tariq Glass Ind

Low

Close Chg

1174 231

3.47 2.01

13.22 16.94

14.45 17.00

13.20 16.70

13.76 0.54 16.80 -0.14

Company Ados Pak

Paid up Cap(mn) 66

PE 1.01

Open 16.50

High

Low

Last 60 days High Low 48.00 13.71 2.49 36.00 16.98 81.95 60.99 6.35 74.00 57.20 29.23 14.74 6.50 42.50 39.33 3.40 3.89 3.50 14.90 13.10 6.40

39.25 8.00 1.11 25.20 11.90 60.10 48.50 4.20 61.50 39.01 17.51 10.20 4.00 32.50 32.80 1.60 2.51 2.12 11.50 8.01 3.02

2009 Div BR (%) (%) 40 35 40 40 35 20 50 30 15 10 15 -

25B 30B 25B 10B 10B 25B -

2010 Div BR (%) (%) 40 0 12.5R 25 10B 12 12 15 28R -

Close 1,106.08 Listed cap 3,763.71 mn Payout (%) 6.27

Volume

Last 60 days High Low

2623326 15.43 70201 18.80

12.25 14.50

2009 Div BR (%) (%) -

10B -

Open 950.30 Turnover 68,098,697 P/E (x) 6.07 Company

Paid up Cap(mn)

AL-Qadir Textile XD 76 Amtex Limited XD 2415 Azam Textile XD 133 Azgard Nine 4493 Bannu Woolen XD 76 Bata (Pak) 76 Bilal Fibres 141 Chenab Limited 1150 Chenab Ltd Pref 800 Colony Mills Ltd 2442 Crescent Fibres Ltd XD 124 D S Ind Ltd 600 Dawood Lawrencepur 514 Dewan Farooque Spin. 600 Dewan Mushtaq Textile 34 Din TextileXDXB 204 Ellcot Spinning XD 110 Gadoon Textile XD 234 Gillette Pakistan 192 Gulshan SpinningXDXB 222 Hira Txt.Mills Ltd. XD 716 Ibrahim Fibres XD 3105 Int Knitwear XD 32 Kohinoor Ind 303 Kohinoor Spinning XD 1300 Kohinoor Textile 1455 Mian Textile 221 Mohd Farooq 189 Mukhtar Textile 145 Nagina Cotton 187 Nishat (Chunian) XD 1586 Nishat Mills XD 3516 Pak Synthetic 560 Premium Textile XD 62 Quetta Textile XD 130 Ravi Textile 250 Reliance Weaving 308 Salfi Textile 33 Sally Textile XD 88 Samin Textile 134 Service Ind 120 Shahpur Textile 140 Suraj Cotton XD 180 Taj Textile 334 Tata Textile 173 Thal Limited 307 Treet Corp 418 Yousuf Weaving 400

11.02

Interest Expense

245.93

1st Support

13.95

Loss after Taxation

(99.91)

2nd Support

13.70

EPS 09 (Rs)

(1.813)

1st Resistance

14.45

Book value / share (Rs)

2nd Resistance

14.70

PE 10 E (x)

Pivot

14.20

PBV (x)

6.70 15.47 2.12

SPL closed up 1.18 at 14.23. Volume was 262 per cent above average (trending) and Bollinger Bands were 153 per cent wider than normal.

The company's profit after taxation stood at Rs12.836 million which translates into an Earning Per Share of Rs0.23 for the 1st quarter of current fiscal year (1QFY11).

SPL is currently 27.1 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into SPL (bullish). Trend forecasting oscillators are currently bullish on SPL. Momentum oscillator is currently indicating that SPL is currently in an overbought condition.

Silkbank Limited

MA (100-day)

2.78

Revenue (Rs in mn)

PE

Open

5.50 10.86 4.68 0.28 2.35 - 11.18 0.46 13.30 5.17 678.48 0.53 1.35 3.40 2.14 4.16 2.90 0.49 11.00 1.93 42.52 39.00 5.16 6.95 0.12 4.20 0.56 25.27 0.58 20.20 0.54 45.01 - 61.00 0.92 7.93 0.76 3.90 3.01 37.90 9.65 1.57 0.36 0.82 4.14 5.29 0.65 0.91 0.65 0.75 14.75 1.91 22.98 4.65 53.39 2.28 6.45 0.47 28.90 0.61 31.00 1.62 0.65 9.19 0.20 36.00 0.20 4.46 5.13 5.92 6.55 178.21 0.69 0.48 0.73 32.05 0.43 0.29 24.50 4.22 99.91 8.09 53.03 0.49 1.23

High

High Low 981.57 937.43 Total cos Defaulter cos P/BV (x) ROE (%) 0.52 8.64 Low

Close Chg

6.90 5.00 6.86 1.36 5.10 4.49 4.78 0.10 2.80 2.00 2.00 -0.35 11.79 10.55 10.62 -0.56 13.40 12.30 13.01 -0.29 747.48 623.71 623.71-54.77 2.00 1.11 1.98 0.63 3.90 3.26 3.35 -0.05 2.32 1.75 1.85 -0.29 2.90 2.50 2.66 -0.24 13.00 10.11 10.51 -0.49 2.09 1.76 1.89 -0.04 40.00 36.10 36.14 -2.86 7.29 6.00 6.40 -0.55 4.50 3.05 3.95 -0.25 26.77 25.00 26.00 0.73 20.25 19.00 19.00 -1.20 52.20 45.50 49.49 4.48 64.75 60.00 60.00 -1.00 8.50 7.10 7.60 -0.33 4.15 3.85 4.05 0.15 39.75 36.00 38.29 0.39 10.64 9.00 9.00 -0.65 1.72 1.41 1.50 -0.07 1.18 0.86 1.00 0.18 5.97 5.18 5.80 0.51 0.64 0.34 0.34 -0.31 1.64 0.57 0.80 -0.11 0.75 0.16 0.58 -0.07 15.49 14.70 14.70 -0.05 25.10 22.50 22.95 -0.03 57.65 53.51 54.18 0.79 6.75 6.32 6.75 0.30 29.40 28.00 29.40 0.50 37.51 31.89 37.51 6.51 1.76 1.50 1.60 -0.02 9.74 9.00 9.27 0.08 43.65 37.49 43.65 7.65 4.89 3.57 4.05 -0.41 6.35 6.00 6.15 0.23 196.47 180.11 191.47 13.26 0.65 0.40 0.50 0.02 35.50 32.25 32.60 0.55 0.40 0.38 0.39 -0.04 29.76 23.50 29.76 5.26 102.75 95.10 98.70 -1.21 54.74 50.50 50.82 -2.21 1.40 1.05 1.40 0.17

Close 947.55 Listed cap 47,070.70 mn Payout (%) 16.68

Volume

Change % Change -2.75 -0.29 Market cap 200-Day High 122,600.66 mn 960.61 Div Yield (%) 200-Day Low 2.75 947.55

Last 60 days High Low

17212 6.90 5654950 20.09 8817 3.45 11749172 12.32 25888 14.50 48406 747.48 11548 2.00 597640 3.95 20654 2.61 53938 3.45 14405 18.35 307748 2.49 5702 47.00 84982 7.29 12747 4.70 102727 30.90 17115 25.45 50878 52.20 5672 73.00 8347 10.30 507740 4.88 103939 40.30 16103 10.99 88023 1.93 11007 2.00 221949 6.30 5942 0.98 66934 1.64 18551 0.98 7808 17.50 18276905 25.10 26881401 57.65 66855 7.49 35005 31.03 10136 52.29 304871 2.65 12460 12.00 7940 43.65 6840 6.20 30724 8.69 208377 255.29 86017 1.90 50312 37.50 20000 0.80 10042 29.76 1133277 112.80 992942 55.25 14683 1.80

2.50 4.40 1.35 8.80 7.50 436.00 0.55 3.00 1.21 2.23 7.66 1.44 36.10 2.05 1.52 20.80 17.21 33.80 57.50 5.51 2.95 34.05 7.98 1.01 0.70 4.30 0.01 0.35 0.16 12.00 15.25 40.81 5.16 25.71 25.80 1.38 7.60 20.50 2.92 5.02 169.00 0.18 29.00 0.25 14.02 86.50 37.20 0.73

2009 Div BR (%) (%)

2010 Div BR (%) (%)

10 30 7.5 20 120 10 5 20 10B 7.5 35 70 - 10B 10 20B 10 20 6 5 - 20SD - 50R 15 20 25 45R 12.5 7.5 50 - 632R 20 - 25SD 25 10 - 100R 200 15 50 25 20 20B 80 20B -

Open 872.50 Turnover 311,230 P/E (x) 6.40

High Low 887.17 862.96 Total cos Defaulter cos P/BV (x) ROE (%) 1.43 22.31

Close 871.52 Listed cap 3,904.20 mn Payout (%) 44.54

Change % Change -0.98 -0.11 Market cap 200-Day High 29,022.03 mn 872.70 Div Yield (%) 200-Day Low 6.95 870.44

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

Abbott (Lab)

979

8.59

99.05

100.00

98.00

98.05 -1.00

15204

104.00

77.00

120

-

20

-

Ferozsons (Lab)

250

6.39

86.19

88.20

82.20

84.60 -1.59

11537

124.00

82.20

10

20B

-

20B

Company

Last 60 days High Low

2009 Div BR (%) (%)

2010 Div BR (%) (%)

13605

21.96

14.62

20

-

-

34849

227.45

200.00

400

-

150

-

12047

51.99

40.00

-

20B

25

10B

Ghandhara Ind

213 10.16

11.63

11.73

10.85

10.97 -0.66

111550

18.80

10.55

-

-

-

-

GlaxoSmithKline

1707

12.74

69.98

72.20

69.63

70.85

0.87

83022

78.15

65.00

50

-

-

-

Hinopak Motor

124

14768

143.41

108.11 17.15

-

-

-

Highnoon (Lab)

165

6.77

25.00

25.00

24.35

24.45 -0.55

26981

25.79

22.60

25

-

-

-

KSB Pumps

132

8.43

6939

88.15

69.50

35

-

-

-

Otsuka Pak

100

7.43

32.00

33.30

30.50

33.30

19846

34.70

27.50

15

-

-

-

Millat Tractors XB

366

6.33 482.77

597.90

390.00

450

25B

650

25B

Searle Pak XD

306

5.61

62.50

63.75

61.80

62.34 -0.16

108611

64.50

53.36

15

15B

30

-

655391

628.52

MA (200-day)

Total Equity (Rs in mn)

4.90

0.97

369.37

Revenue (Rs in mn)

Total Assets (Rs in mn)

44.85 -0.59

499.10 480.00 483.74

2,968.77

Total Equity (Rs in mn)

9.40

2.65

44.00

70.36 -0.07

Total Assets (Rs in mn)

13.05

MA (100-day)

45.14

46.40

69.50

76.46

MA (10-day)

MA (10-day)

45.44

72.55

RSI (14-day)

RSI (14-day)

-

136.54 118.01 136.54 18.04

Fundamental Highlights As on Jun 30, 2009

Technical Analysis

Technical Analysis

10B -

Performance of SR Pharma and Bio Tech Index

2010 Div BR (%) (%) -

Sitara Peroxide Limited

17.5

215

214.00 205.10 209.00

0.69

PAKRI closed down -0.48 at 15.61. Volume was 31 per cent below average and Bollinger Bands were 6 per cent narrower than normal.

The company's profit after taxation stood at Rs88.468 million which translates into an Earning Per Share of Rs0.29 for the nine months of current calendar year (9MCY10).

PAKRI is currently 19.8 per cent below its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into PAKRI (mildly bullish). Trend forecasting oscillators are currently bullish on PAKRI.

2010 Div BR (%) (%)

PHARMA AND BIO TECH

2009 Div BR (%) (%)

0.90

Change % Change -31.74 -2.79 Market cap 200-Day High 5,196.87 mn 1,137.82 Div Yield (%) 200-Day Low 1.67 1,101.81

104

70.43

15.70 -0.80

Volume

Change % Change -3.11 -0.21 Market cap 200-Day High 197,559.24 mn 1,521.66 Div Yield (%) 200-Day Low 0.98 1,513.77

Performance of SR Personal Goods Index

Change % Change 0.01 0.00 Market cap 200-Day High 31,721.96 mn 1,537.17 Div Yield (%) 200-Day Low 16.47 1,515.27

Last 60 days High Low

20B 20B

AL-Ghazi Tractor

- 118.50

15.70

Close Chg

Close 1,515.50 Listed cap 1,336.62 mn Payout (%) 131.49

90 100 20 150 10

20B 30B 20B

Bolan CastingXDXB

5.01 204.10

16.90

High Low 1,564.83 1,493.68 Total cos Defaulter cos P/BV (x) ROE (%) 3.03 38.02

81675 343760 10658 838310 29641 18196 42477 17513 122480 6240 6817 73250 10714 12555 77500 11000 10000 17000 22309 63147 18550

40 100 80 100 5 -

PERSONAL GOODS

Performance of SR Industrial Engineering Index Open 1,515.49 Turnover 849,432 P/E (x) 7.98

Volume

High Low 1,135.33 1,099.13 Total cos Defaulter cos P/BV (x) ROE (%) 0.40 10.64

High

20B

2010 Div BR (%) (%)

3.35 2.70 0.20 4.51 0.30 -0.53 1.44 0.27 1.15 0.26 3.56 1.08 0.10 6.64 2.06 -0.01 0.00 0.40 0.09 1.56 0.15

Open

-

Change % Change -3.37 -0.34 Market cap 200-Day High 70,754.26 mn 1,023.94 Div Yield (%) 200-Day Low 2.97 986.94

47.50 13.41 1.70 34.48 12.80 78.95 59.99 5.71 67.35 42.86 21.17 14.08 6.30 42.00 39.33 2.10 3.10 3.10 13.99 12.75 5.25

PE

Performance of SR Construction and Materials Index High Low 1,052.96 974.69 Total cos Defaulter cos P/BV (x) ROE (%) 0.46 7.10

44.00 10.75 1.69 30.50 12.20 78.00 57.50 5.00 65.00 42.00 18.00 13.15 5.99 36.76 37.46 2.02 3.10 3.00 13.35 11.50 4.06

Close Chg

Paid up Cap(mn)

CONSTRUCTION AND MATERIALS Open 990.31 Turnover 78,958,705 P/E (x) 6.42

48.00 13.71 1.88 36.00 13.00 81.95 60.99 6.35 71.24 43.25 21.17 14.74 6.50 42.50 39.33 2.10 3.75 3.40 14.00 13.10 5.75

Low

2010 Div BR (%) (%)

0.00 269.91

HOUSEHOLD GOODS

INDUSTRIAL METALS AND MINING Close 914.19 Listed cap 3,596.11 mn Payout (%) 30.91

High

Close 1,513.77 Listed cap 11,335.33 mn Payout (%) 30.57

2009 Div BR (%) (%)

Technical Analysis

Performance of SR Household Goods Index

-

Performance of SR Industrial Metals and Mining Index High Low 945.85 909.24 Total cos Defaulter cos P/BV (x) ROE (%) 0.81 33.10

44.15 10.71 1.50 29.97 12.50 79.48 58.55 5.44 66.20 42.60 17.61 13.00 6.20 35.36 37.27 2.11 3.10 2.70 13.90 11.19 5.10

-

411

Open 927.30 Turnover 589,573 P/E (x) 2.45

Open

High Low 1,543.25 1,468.11 Total cos Defaulter cos P/BV (x) ROE (%) 9.44 30.30

2010 Div BR (%) (%)

Change % Change 59.43 5.39 Market cap 200-Day High 41,807.19 mn 1,162.27 Div Yield (%) 200-Day Low 5.01 1,100.67

Last 60 days High Low

281539 72.99 20636 195.80 16821 122.51 157746 1.95 15799 26.70 130416 6.09 412300 13.30 449524 263.60 201620 82.00 42253 27.58

2009 Div BR (%) (%)

Fundamental Highlights As on Dec 31, 2009

PE

Attock Petroleum

128.90

Pakistan Reinsurance Company Limited

Change % Change 5.19 0.69 Market cap 200-Day High 13,210.73 mn 766.72 Div Yield (%) 200-Day Low 1.92 749.62

Attock Refinery

2.72

Alert ! Unusual Movements

10,461.63 10,662.92 10,442.04 i13.40

OIL AND GAS Open 1,402.33 Turnover 31,711,248 P/E (x) 10.46 Company

KSE 100 Index

Symbols

Volume

1.30

Fundamental Highlights As on Dec 31, 2009 68,664.34 196.91 5,913.32

MA (200-day)

3.12

Interest Expense

1st Support

2.65

Loss after Taxation

2nd Support

2.57

EPS 09 (Rs)

5,855.52

1st Resistance

2.78

Book value / share (Rs)

2nd Resistance

2.83

PE 10 E (x)

Pivot

2.70

PBV (x)

(2,902.91) (3.224) 0.22 12.30

SILK closed up 0.06 at 2.69. Volume was 65 per cent below average (consolidating) and Bollinger Bands were 25 per cent narrower 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 13.9 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 volume flowing into and out of SILK at a relatively equal pace. Trend forecasting oscillators are currently bearish on SILK.

Sui Southern Gas Company Limited

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

43.55

Total Assets (Rs in mn)

MA (10-day)

24.15

Total Equity (Rs in mn)

110,759.62

MA (100-day)

21.50

Revenue (Rs in mn)

MA (200-day)

20.11

Interest Expense

5,015.89

1st Support

23.90

Profit after Taxation

4,399.15

2nd Support

23.51

EPS 10 (Rs)

6.554

1st Resistance

24.79

Book value / share (Rs)

20.97

14,072.35 127,613.53

2nd Resistance

25.29

PE 11 E (x)

3.65

Pivot

24.40

PBV (x)

1.16

SSGC closed down -0.34 at 24.25. Volume was 77 per cent below average (consolidating) and Bollinger Bands were 35 per cent wider than normal. The company's profit after taxation stood at Rs1.113 billion which translates into an Earning Per Share of Rs1.66 for the 1st quarter of current fiscal year (1QFY11).

SSGC is currently 20.6 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 into SSGC (mildly bullish). Trend forecasting oscillators are currently bearish on SSGC.

BOOK CLOSURES Company

From

To

Karachi Electric Supply Corp

15-Nov

28-Nov

D/B/R 7.80(R)

04-Nov

Spot AGM/Date -

East West Life Assurance

15-Nov

23-Nov

10R

04-Nov

-

Nestle Pakistan

16-Nov

22-Nov

250(ii)

05-Nov

-

(TFC) Engro Fertiliser Co.

17-Nov

30-Nov

-

-

-

1st IBL Modaraba

17-Nov

25-Nov

3(F)

-

United Bank

18-Nov

25-Nov

-

-

25-Nov

Fauji Fertiliser Co.

21-Nov

27-Nov

20(iii)

-

-

(TFC) Telecard

21-Nov

27-Nov

-

-

-

Faysal Bank

22-Nov

30-Nov

20(B)

-

25-Nov

-

(TFC) Allied Bank

22-Nov

05-Dec

-

-

-

PICIC Energy Fund

23-Nov

30-Nov

5

10-Nov

30-Nov

Thal Limited

23-Nov

30-Nov

-

-

30-Nov

Sui Southern Gas Pipelines

24-Nov

30-Nov

20

-

30-Nov

Fazal Cloth Mills

26-Nov

03-Dec

100SD

-

Sana Industries

27-Nov

03-Dec

-

-

03-Dec

East West Insurance Co.

01-Dec

07-Dec

10(B)

-

-

MCB Bank

03-Dec

10-Dec

30(iii)

-

-

Dawood Hercules Chemicals

07-Dec

13-Dec

20(ii)

-

-

Engro Corporation (Standalone)

07-Dec

21-Dec

20(ii)

-

-

Fauji Fertiliser Bin Qasim

14-Dec

20-Dec

12.5(iii)

-

-

Oil and Gas Development Co

14-Dec

21-Dec

15(i)

-

-

Siemens Pakistan

20-Dec

29-Dec

600

-

29-Dec

INDICATIONS # Extraordinary General Meeting

29-Nov

7

Monday, November 15, 2010

FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 1,125.24 Turnover 20,202,812 P/E (x) 6.09 Paid up Cap(mn)

Company

High Low 1,158.48 1,115.00 Total cos Defaulter cos P/BV (x) ROE (%) 0.78 12.84

PE

Open

High

Low

Close Chg

Pakistan Telecomm Co A 37740 12.73 Telecard XD 3000 0.69 WorldCall Tele 8606 -

19.16 2.31 2.46

19.60 2.55 2.78

18.91 2.25 2.41

19.10 -0.06 2.32 0.01 2.58 0.12

Close 1,125.76 Listed cap 50,077.79 mn Payout (%) 62.56

Volume 7693913 4421267 8085302

19.76 2.69 2.98

17.32 1.80 2.30

2009 Div BR (%) (%) 15 -

369

5.26

33.55

34.70

33.11

33.11 -0.44

13519

35.00

27.10

40

10B

-

Century Insurance

457

6.66

11.49

12.00

9.65

10.65 -0.84

105143

12.00

9.42

-

-

-

-

1250

-

45.88

47.00

43.80

44.46 -1.42

422540

48.63

34.76

40

8.7B

-

-

400

2.71

11.27

11.99

11.25

11.40 0.13

24314

12.35

10.04

35

-

-

-

3000 40.03

5680080

EFU General Insurance

Change % Change 0.52 0.05 Market cap 200-Day High 77,923.08 mn 1,140.19 Div Yield (%) 200-Day Low 10.27 1,125.24

Last 60 days High Low

Atlas Insurance

-

Habib Insurance Pak Reinsurance

16.09

17.05

15.36

15.61 -0.48

17.05

12.50

30

-

-

-

Pak Gen Insurance

250

1.42

6.74

6.74

5.81

6.01 -0.73

5033

7.04

5.06

5

25B

-

-

PICIC Ins Ltd

350

-

3.20

6.64

3.10

6.64 3.44

802958

6.64

1.66

-

-

-

-

Premier Insurance

303

5.28

9.44

9.89

9.40

9.77 0.33

18751

9.91

8.00

20

15B

-

-

Silver Star Insurance

253

4.32

7.15

7.50

6.60

6.95 -0.20

15701

8.17

6.00

-

20B

-

-

2010 Div BR (%) (%) 17.5 1 -

Paid up Cap(mn)

Company

PE

Open

High

Low

198 11572 6.30 1560 7932 1695 10.66 8803 4.83 Nishat Chunian Power Ltd 3673 3.04 Nishat Power Ltd 3541 24.15 Sitara Energy Ltd XD 191 3.45 Southern Electric 1367 Tri-star Power XD 150 -

0.97 34.16 1.53 2.17 19.48 39.99 13.95 15.24 18.83 2.14 1.09

0.94 34.51 1.65 2.24 20.50 40.55 14.65 15.97 19.24 2.23 1.14

0.80 33.40 1.52 2.11 19.10 39.25 13.49 14.50 18.25 2.10 0.75

Genertech Hub Power Japan Power KESC XR Kohinoor Energy Kot Addu Power XD

Close 1,184.32 Listed cap 95,369.29 mn Payout (%) 104.13

Change % Change 2.93 0.25 Market cap 200-Day High 97,526.58 mn 1,189.01 Div Yield (%) 200-Day Low 8.11 1,160.61

Close Chg

Volume

Last 60 days High Low

0.84 34.42 1.58 2.15 19.18 39.73 13.88 14.97 18.50 2.10 1.05

34039 9006796 153962 976525 18794 893404 9203395 16409229 38261 576063 38412

1.45 37.24 2.25 2.50 26.50 42.95 14.85 16.10 23.49 2.90 1.75

-0.13 0.26 0.05 -0.02 -0.30 -0.26 -0.07 -0.27 -0.33 -0.04 -0.04

0.51 32.75 0.70 1.94 19.10 38.35 9.50 9.25 18.25 2.05 0.33

2009 Div BR (%) (%) 33.5 45 64.5 20 3

31R -

Open 835.12 Turnover 152,343 P/E (x) 87.66

Paid up Cap(mn)

Company Sui North GasSPOT Sui South GasXDXB

PE

5491 8390

9.93 3.65

Open

High Low 1,862.82 1,785.03 Total cos Defaulter cos P/BV (x) ROE (%) 1.32 11.41

High

34.39 24.59

34.75 25.01

Low 33.20 24.01

Close Chg 33.37 -1.02 24.25 -0.34

Change % Change -37.99 -2.07 Market cap 200-Day High 38,668.62 mn 1,849.95 Div Yield (%) 200-Day Low 5.77 1,799.13

Last 60 days High Low

Volume 4331974 2259225

34.75 30.70

25.50 16.00

2009 Div BR (%) (%) -

-

2010 Div BR (%) (%) 20 15

25B

BANKS Open 1,042.95 Turnover 76,210,309 P/E (x) 7.48 Paid up Cap(mn)

Company

PE

Open

Allied Bank Limited 7821 5.59 56.26 Askari Bank 6427 7.44 15.78 Atlas Bank 5001 1.59 Bank Alfalah 13492 12.21 9.88 Bank AL-Habib 7322 7.15 32.00 Bank Of Khyber 5004 5.28 4.27 Bank Of Punjab 5288 - 10.07 BankIslami Pak 5280 832.50 3.27 Faysal BankSPOT 6091 5.42 16.44 Habib Bank Ltd 10019 6.51 103.67 Habib Metropolitan Bank 8732 6.40 20.97 JS Bank Ltd 6128 2.80 KASB Bank Ltd 9509 2.45 MCB Bank Ltd 7602 8.93 206.36 Meezan Bank 6983 7.77 15.20 Mybank Ltd 5304 2.06 National Bank 13455 5.75 66.00 Network Mic Bank 300 1.21 NIB Bank 40437 2.78 Royal Bank Ltd 17180 6.20 Samba Bank 14335 1.87 Silkbank Ltd 26716 2.63 Soneri Bank 6023 7.87 Stand Chart Bank 38716 11.54 6.90 United Bank Ltd 12242 6.81 57.84

High

High Low Close 1,064.07 1,022.66 1,031.64 Total cos Defaulter cos Listed cap - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.04 13.94 40.49 Low

Close Chg

58.15 56.50 57.57 1.31 16.50 15.53 15.62 -0.16 1.70 1.50 1.53 -0.06 10.11 9.48 9.52 -0.36 33.50 31.50 33.18 1.18 4.70 3.71 3.96 -0.31 10.29 9.20 9.27 -0.80 3.49 3.15 3.33 0.06 17.10 16.50 16.81 0.37 106.50 103.30 104.21 0.54 21.25 20.40 20.94 -0.03 3.00 2.73 2.75 -0.05 2.50 2.30 2.39 -0.06 209.75 200.82 201.39 -4.97 15.73 14.52 14.68 -0.52 2.35 1.95 2.00 -0.06 68.50 65.71 65.84 -0.16 1.35 1.15 1.23 0.02 2.92 2.68 2.78 0.00 6.38 5.86 5.91 -0.29 2.00 1.79 1.82 -0.05 2.77 2.62 2.69 0.06 7.99 7.00 7.10 -0.77 8.00 6.75 7.50 0.60 58.75 57.05 57.94 0.10

Last 60 days High Low

Volume 2378235 6740845 295816 8037005 1296308 111462 9246689 1126528 1055066 658053 55744 743682 43950 5675588 141811 775535 21388067 10104 3546607 340494 1226260 4239774 738761 411202 5926723

Change % Change -11.31 -1.08 Market cap 200-Day High 628,587.89 mn 1,049.15 Div Yield (%) 200-Day Low 5.41 1,031.64

58.15 16.65 2.84 10.19 33.75 4.70 10.50 3.69 17.10 107.15 23.30 3.00 3.22 209.75 15.95 2.75 70.75 1.47 3.25 9.50 2.65 3.30 8.00 8.00 59.24

48.51 14.00 1.50 7.32 29.10 2.50 7.35 2.31 12.85 92.00 18.02 2.00 2.03 180.60 14.00 1.62 60.51 0.26 2.42 5.20 1.51 2.33 5.01 6.00 49.90

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

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

NON LIFE INSURANCE Performance of SR Non Life Insurance Index Open 724.42 Turnover 10,605,866 P/E (x) 11.62 Paid up Cap(mn)

Company Adamjee Insurance

High Low 759.90 715.29 Total cos Defaulter cos P/BV (x) ROE (%) 0.60 5.20

Low

Close Chg

Volume

Last 60 days High Low

EFU Life Assurance

850 42.90

73.23

78.00

72.34

75.50 2.27

64923

82.99

51.25

5513.33B

-

-

New Jub Life Insurance

627 28.86

40.65

43.00

40.15

43.00 2.35

37895

45.20

34.50

10

-

Close 726.29 Listed cap 11,111.34 mn Payout (%) 79.54

Change % Change 1.86 0.26 Market cap 200-Day High 45,240.48 mn 745.77 Div Yield (%) 200-Day Low 6.85 724.42

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1237 22.86

77.58

84.15

77.50

78.85 1.27

3500122

84.15

63.05

2009 Div BR (%) (%) 30

10B

2010 Div BR (%) (%) 10

-

2009 Div BR (%) (%)

2010 Div BR (%) (%)

-

-

FINANCIAL SERVICES Performance of SR Financial Services Index Open High Low 396.14 434.70 394.70 Turnover Total cos Defaulter cos 124,501,070 P/E (x) P/BV (x) ROE (%) 10.00 0.43 0.91

Close 415.92 Listed cap 30,336.44 mn Payout (%) 99.56

Change % Change 19.79 5.00 Market cap 200-Day High 29,204.73 mn 424.46 Div Yield (%) 200-Day Low 2.07 396.14

Paid up Cap(mn)

PE

AMZ Ventures

225

1.36

0.66

0.70

0.55

0.60 -0.06

182014

1.10

0.42

-

-

-

-

Arif Habib Limited XB

450 13.52

25.44

27.35

25.65

26.50 1.06

701911

35.23

24.40

15

25B

-

20B

30973565

-

-

30

Arif Habib Securities

Open

High

Low

Close Chg

Last 60 days High Low

Volume

2009 Div BR (%) (%)

2010 Div BR (%) (%)

3750

4.63

24.28

26.19

24.31

25.16 0.88

26.75

20.90

Dawood Cap Mngt. XB

150

1.12

1.50

1.78

1.25

1.25 -0.25

201501

2.05

0.86

-

-

-

-

Dawood Equities

250

-

1.90

2.07

1.90

1.93 0.03

73557

2.70

1.51

-

-

-

-

IGI Investment Bank Invest and Fin Sec XD

2121 16.31

2.34

2.80

2.21

2.61 0.27

4874914

2.80

1.17

-

-

-

600 734.00

6.70

7.99

6.42

7.34 0.64

5016

9.00

6.16

-

-

11.5

-

-

Invest Bank

2849

-

0.73

0.80

0.56

0.75 0.02

45662

1.00

0.44

-

-

-

-

Ist Cap Securities XB

3166

-

3.85

3.96

3.66

3.66 -0.19

62886

5.29

2.54

-

10B

-

10B

106983

-

-

-

Ist Dawood Bank

626

0.66

1.91

1.97

1.80

1.84 -0.07

2.84

1.17

-

Jah Siddiq Co

7633

-

10.79

12.58

10.81

11.76 0.97

76086992

12.58

8.80

-243.778B 10

-

JOV and CO

508

-

4.03

4.78

4.00

4.22 0.19

5036165

5.38

1.96

-

-

500

7.82

29.37

32.37

28.75

29.09 -0.28

143362

40.30

-

-

24.25

150

-

-

-

6.38

7.44

6.48

6.77 0.39

3462836

7.44

5.10

-

-

-

-

Orix Leasing

821

4.44

6.28

6.39

5.51

6.04 -0.24

26972

6.45

3.66

-

-

-

-

Pervez Ahmed Sec

775

-

2.41

2.69

2.21

2.31 -0.10

1185205

2.70

1.35

-231.08R

-

-

Saudi Pak Leasing

452

-

0.75

0.69

0.61

0.65 -0.10

7611

0.86

0.40

-

-

-

JS Investment

1000 28.21

-

EQUITY INVESTMENT INSTRUMENTS

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

Change % Change 36.54 4.38 Market cap 200-Day High 10,126.95 mn 871.66 Div Yield (%) 200-Day Low 4.06 835.12

High

JS Global Cap

Performance of SR Banks Index

Close 871.66 Listed cap 2,290.72 mn Payout (%) 355.53

Open

Company

Close 1,799.13 Listed cap 12,202.80 mn Payout (%) 66.79

High Low 882.16 830.22 Total cos Defaulter cos P/BV (x) ROE (%) 3.37 3.85

PE

50 - 7.8R 15 50 20 -

Performance of SR Gas Water and Multiutilities Index Open 1,837.12 Turnover 6,591,199 P/E (x) 11.57

Paid up Cap(mn)

Company

2010 Div BR (%) (%)

GAS WATER AND MULTIUTILITIES

KOHP MEHT DYNO KML COTT TSML SHCI DATM MSOT IGIIL RUPL STJT PAKL TRIBL SNAI MODAM ATEL SAPL GRAYS UVIC ADAMS BAPL CSMD COLG FZCM BWHL LAKST MUBT DKTM MACFL BAWS PAKD UNIC PTEC NPSM RICL CICL JKSM LEUL THCCL FNEL AASM PCAL MERIT STML GFIL BFMOD EXIDE ICL CJPL ARUJ FECM SCLL JDMT EMCO ISIL ZTL JOPP AABS NJICL ADMM BGL IDSM MIRKS GATI GAIL ISTM HUSS AGIC SHJS DSML FIMM CRTM SHEZ GUSM SHNI TREI SARD SRSM FTSM FASM DIIL BHAT IDRT SCL SING GATM BROT KSTM WAZIR SIBL BTL BUXL SHDT ALICO ESBL AZTM PRWM FZTM TRSM MUCL NESTLE RMPL FCONM DADX QUAT ATFF SANE PECO MSCL CLOV GUTM STCL LPGL PASM CPAL ULEVER CWSM IDYM FECS BWCL KOHS HWQS LMSM RCML SAIF SHCM SFL ARM BAFS WYETH FDMF TOWL SSML

Performance of SR Life Insurance Index

-

Performance of SR Electricity Index High Low 1,194.55 1,156.80 Total cos Defaulter cos P/BV (x) ROE (%) 1.20 9.35

Symbols

LIFE INSURANCE

ELECTRICITY Open 1,181.39 Turnover 36,291,909 P/E (x) 12.84

UP TO 5000 VOLUME

-

Performance of SR Equity Investment Instruments Index Open 1,071.10 Turnover 7,591,190 P/E (x) 15.42 Paid up Cap(mn)

Company 1st Fid Leasing

PE

264 10.94

Open

Low

2.24

1.01

-

2010 Div BR (%) (%)

-

-

5.28

6.30

6.49

6.15

6.34 0.04

449484

7.20

5.85

-

-

18.5

-

2.60

3.00

2.30

2.85 0.25

10500

3.44

2.10

-

-

5

-

B R R Guardian Mod.

780

2.93

1.35

1.68

1.20

1.29 -0.06

109984

1.68

0.90

-

-

0

-

Crescent St Mod. XD

200

1.50

0.68

0.83

0.52

0.60 -0.08

250995

1.10

0.16

-

-

1.2

-

Equity Modaraba

524

8.44

1.25

1.40

1.06

1.35 0.10

45444

1.50

0.76

-

-

-

-

First Capital Mutual F.

300 10.03

4.50

4.02

3.75

4.01 -0.49

104943

5.50

1.02

-

-

-

-

Golden Arrow XD

760

1.91

2.73

2.80

2.56

2.67 -0.06

201781

3.88

2.32

-

-

17

-

H B L Modaraba XD

397

2.04

6.25

6.35

6.13

6.13 -0.12

25736

6.80

4.80

5

-

11

-

1008

-

JS Value Fund

26907

2009 Div BR (%) (%)

4.75

JS Growth Fund

1.75 0.35

Last 60 days High Low

Volume

210

Habib Modaraba

1.18

Change % Change 0.72 0.07 Market cap 200-Day High 15,355.06 mn 1,079.68 Div Yield (%) 200-Day Low 10.55 1,066.52

1375

I B L ModarabaSPOT

1.80

Close Chg

Close 1,071.83 Listed cap 29,771.58 mn Payout (%) 104.74

AL-Noor Modaraba XD

AL-Meezan Mutual F.

1.40

High

High Low 1,093.23 1,047.44 Total cos Defaulter cos P/BV (x) ROE (%) 0.34 2.21

-

5.34

6.08

6.50

6.00

6.20 0.12

72632

7.25

5.56

20

-

21

202 14.55

1.80

2.00

1.25

1.60 -0.20

11421

2.90

1.06

-

-

3

-

3180 40.13

3.05

3.29

3.05

3.21 0.16

728142

3.60

2.65

-

-

5

-

2.31

10

-

10

-

Meezan Bal. Fund

1200

5.10

5.30

5.50

5.15

5.30 0.00

255539

7.00

5.15

-

-

15.5

-

NAMCO Bal. Fund

1000

1186 11.07 5.00

3.15

3.40

2.71

3.20 0.05

77727

3.69

2.25

5

-

15

-

Nat Bank Mod. XD

250

5.09

6.90

6.90

4.60

5.50 -1.40

375515

8.45

4.60

-

-

10

-

Pak Modaraba XD

125

3.50

0.79

0.79

0.50

0.70 -0.09

13131

1.40

0.30

-

-

3

-

1698 11.92

8.37

8.60

8.20

8.58 0.21

493636

9.44

7.00

-

-

18.6

Pak Prem Fund Paramount Mod. XD

2.95

3.17

3.00

3.10 0.15

2624070

3.50

-

59

6.25

8.00

8.40

7.57

8.00 0.00

12340

9.45

6.55

15

-

18

-

PICIC Energy FundSPOT 1000

1.67

5.66

5.95

5.62

5.75 0.09

212497

5.95

4.00

-

-

10

-

PICIC Growth Fund

2835

-

20

PICIC Inv Fund

2841

4.88

4.07

4.34

4.10

4.29 0.22

452634

4.75

3.50

-

-

10

-

872

2.25

0.98

0.99

0.87

0.99 0.01

105633

1.20

0.70

-

-

3

-

-

1

-

Prud Modaraba 1st

5.70

8.61

9.20

8.70

8.89 0.28

860199

9.45

7.60

-

-

Punjab Modaraba XD

340

8.57

1.66

1.94

1.50

1.80 0.14

41762

1.94

0.57

-

Stand Chart Modaraba

454

4.35

9.00

8.95

8.60

8.88 -0.12

12627

10.99

7.75

16.5

-

17

-

U D L Modaraba

264

1.61

5.40

5.79

5.35

5.67 0.27

5781

6.99

4.71

10

-

12.5

-

Open

High

4.90 54.16 12.80 2.16 1.12 29.03 2.47 0.41 18.01 84.00 32.72 16.97 1.96 2.80 32.25 1.17 17.00 122.04 48.57 2.35 14.37 9.52 6.28 821.83 52.00 32.30 332.10 0.60 1.45 3.05 2.30 79.05 5.50 2.50 20.00 6.36 56.00 6.83 1.74 20.28 9.90 26.25 52.98 18.16 17.00 3.05 3.80 151.80 25.72 0.84 5.00 2.45 2.79 14.16 3.29 75.90 4.20 8.50 95.00 57.23 20.00 1.75 3.45 59.00 42.49 4.80 5.00 12.00 11.50 66.75 1.75 47.50 20.38 92.50 5.55 13.50 2.15 1.40 2.05 2.75 29.95 11.19 190.40 3.33 53.82 18.05 25.00 0.50 0.85 5.65 2.50 47.99 12.29 8.50 17.99 2.75 2.24 13.58 426.65 1.51 11.50 1974.46 1858.47 1.44 23.78 9.30 3.12 2.55 285.00 7.13 51.30 19.20 9.00 19.56 8.50 1.99 4100.00 1.06 245.97 40.31 23.00 3.61 21.90 1.10 31.35 4.80 10.50 120.00 14.90 55.00 850.00 1.90 18.00 2.65

4.90 59.80 13.79 3.13 1.30 30.58 2.95 0.50 19.50 86.40 34.12 17.96 2.65 2.84 32.98 1.18 18.00 128.73 55.90 3.50 16.50 8.97 6.35 930.00 56.90 35.00 340.00 1.25 2.85 3.05 2.70 81.90 6.00 3.00 21.00 6.77 59.15 7.15 2.18 20.20 10.00 25.88 56.00 18.30 20.00 3.90 3.80 154.00 27.09 1.25 5.50 2.10 2.84 15.14 3.64 76.90 4.49 9.00 94.80 58.00 20.80 1.90 4.38 62.70 46.59 4.78 6.50 13.65 11.50 66.90 2.80 47.50 19.38 95.60 6.99 14.53 2.20 1.40 2.05 1.75 32.75 12.14 215.00 3.20 65.39 18.75 25.90 0.90 0.85 6.65 2.99 48.50 12.29 10.40 18.00 2.95 2.24 14.90 447.10 1.70 13.45 2043.97 2095.00 1.88 22.80 8.62 3.68 2.90 298.90 7.13 51.30 20.20 9.45 20.56 8.00 1.99 4100.00 1.79 263.99 44.62 24.80 4.47 22.00 1.10 32.75 5.25 10.50 120.00 14.90 56.50 850.00 1.95 17.00 2.65

Low

Close

4.35 51.46 9.99 2.05 0.56 30.00 2.25 0.20 18.30 83.00 31.25 17.10 1.96 1.58 31.56 0.97 16.10 122.20 50.00 2.45 14.50 8.05 5.76 840.00 53.20 31.90 310.00 0.60 1.89 2.40 1.21 79.00 5.31 1.85 20.00 6.15 54.10 4.62 2.00 19.10 8.68 25.00 50.00 17.26 17.20 2.80 3.25 150.00 24.50 0.80 5.25 2.05 2.30 13.25 2.50 72.29 3.75 8.00 92.00 55.08 19.10 1.31 3.00 60.10 41.00 4.15 4.99 11.65 10.90 62.19 1.80 45.21 19.29 90.00 5.32 14.00 1.62 0.91 2.00 1.70 30.80 8.41 189.90 3.20 56.50 18.05 24.50 0.59 0.42 5.65 2.62 45.60 11.30 9.10 17.10 2.65 2.24 13.00 397.10 1.51 12.49 1860.11 1860.01 1.00 22.60 8.51 3.26 2.55 254.64 6.15 46.76 19.20 7.75 19.56 8.00 1.25 3901.00 0.95 240.52 39.00 21.85 2.61 21.50 1.00 31.35 5.20 9.55 119.50 14.50 53.70 821.00 1.81 15.00 1.71

4.87 57.00 10.65 2.49 0.56 30.50 2.41 0.38 18.51 84.00 34.12 17.50 2.00 2.84 32.11 1.08 16.10 128.00 55.90 3.00 16.45 8.75 5.80 841.06 53.20 32.00 318.82 1.00 2.49 2.94 1.21 79.89 5.99 2.40 20.98 6.50 56.00 6.32 2.00 20.00 9.83 25.00 53.16 17.96 19.21 2.99 3.79 153.00 24.50 0.85 5.25 2.10 2.79 14.00 2.95 75.10 3.90 8.22 94.70 57.99 19.40 1.85 3.49 61.38 41.91 4.49 6.25 11.66 11.25 66.90 2.80 47.50 19.29 95.60 6.15 14.00 2.04 0.91 2.00 1.70 32.00 8.42 215.00 3.20 65.39 18.07 25.59 0.87 0.85 6.30 2.62 47.00 11.31 9.10 18.00 2.65 2.24 14.50 426.85 1.70 13.45 1943.40 1989.00 1.58 22.80 8.62 3.68 2.90 272.35 6.15 46.76 20.20 9.20 20.56 8.00 1.25 4050.00 1.26 255.00 41.00 24.80 4.00 21.90 1.00 32.75 5.20 9.55 119.99 14.50 53.70 821.00 1.92 15.00 2.63

Change

Vol

-0.03 2.84 -2.15 0.33 -0.56 1.47 -0.06 -0.03 0.50 0.00 1.40 0.53 0.04 0.04 -0.14 -0.09 -0.90 5.96 7.33 0.65 2.08 -0.77 -0.48 19.23 1.20 -0.30 -13.28 0.40 1.04 -0.11 -1.09 0.84 0.49 -0.10 0.98 0.14 0.00 -0.51 0.26 -0.28 -0.07 -1.25 0.18 -0.20 2.21 -0.06 -0.01 1.20 -1.22 0.01 0.25 -0.35 0.00 -0.16 -0.34 -0.80 -0.30 -0.28 -0.30 0.76 -0.60 0.10 0.04 2.38 -0.58 -0.31 1.25 -0.34 -0.25 0.15 1.05 0.00 -1.09 3.10 0.60 0.50 -0.11 -0.49 -0.05 -1.05 2.05 -2.77 24.60 -0.13 11.57 0.02 0.59 0.37 0.00 0.65 0.12 -0.99 -0.98 0.60 0.01 -0.10 0.00 0.92 0.20 0.19 1.95 -31.06 130.53 0.14 -0.98 -0.68 0.56 0.35 -12.65 -0.98 -4.54 1.00 0.20 1.00 -0.50 -0.74 -50.00 0.20 9.03 0.69 1.80 0.39 0.00 -0.10 1.40 0.40 -0.95 -0.01 -0.40 -1.30 -29.00 0.02 -3.00 -0.02

4875 4841 4812 4758 4511 4504 4442 4374 4286 4241 4105 4053 4018 3967 3831 3720 3602 3582 3506 3100 3070 3056 3043 2991 2835 2775 2743 2550 2500 2410 2402 2330 2330 2303 2301 2191 2184 2165 2100 2012 1965 1937 1906 1761 1711 1702 1664 1644 1630 1606 1569 1567 1565 1556 1552 1515 1508 1502 1502 1487 1443 1395 1354 1335 1331 1324 1210 1189 1164 1124 1073 1050 1040 1024 1022 1006 1004 1000 1000 1000 956 936 921 900 893 872 855 842 827 701 642 627 600 592 524 505 500 444 409 403 396 388 364 333 332 305 301 300 268 250 244 237 207 204 200 175 145 144 140 128 102 102 101 100 100 100 100 95 50 41 37 36 27 26

BOARD MEETINGS

Dera Ghazi Khan Cement Co Ltd

KSE 100 INDEX

Company

Date

Time

Honda Atlas Cars (Pakistan) Ltd

23-Nov

11:00

Lucky Cement Ltd

Nishat Mills Ltd

TECHNICAL LEVELS Company Al-Abbas Cement

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position

66.72

Support 1

10,842.00

MA (5-day)

10,919.10

Support 2

10,809.95

MA (10-day)

10,773.39

Resistance 1

10,917.15

Fair Value

*Arif Habib Ltd AKD Securities Ltd TFD Research

42

Buy

*Arif Habib Ltd

Buy

AKD Securities Ltd

36.85

10,125.29

Resistance 2

10,960.35

Technical Analysis

10,053.46

Pivot

10,885.15

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

Brokerage House

Neutral

AKD Securities Ltd TFD Research

182.55 5,184.41 N/A N/A N/A 37.86

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

318.37 20,961.28 N/A N/A N/A 82.56

Leverage Position

61.33 53.10 47.84 51.05 55.07 55.58

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

175.80 9,524.84 N/A N/A N/A 74.12

Fair Value 35 32.06 29.1

Rs Recommendations

Brokerage House

Buy

*Arif Habib Ltd

Accumulate

AKD Securities Ltd

Negative

TFD Research

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

70.66 32.07 28.71 29.57 33.04 32.95

47

Buy

*Arif Habib Ltd

44

Buy

AKD Securities Ltd

Positive

TFD Research

44.9

326.94 10,792.24 N/A N/A N/A 25.32

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

58.06 33.70 34.24 33.89 33.91 33.96

810.01 27,880.48 N/A N/A N/A N/A

25.90

27.00

27.50

26.70

24.70

24.25

25.90

26.65

25.45

Adamjee Insurance

63.62

77.75

76.60

79.70

80.60

78.60

Askari Bank

53.85

15.45

15.30

15.85

16.05

15.70

Azgard Nine

48.33

10.45

10.30

10.85

11.10

10.70

97

Buy

Bank Al-Falah

54.55

9.40

9.30

9.70

105.2

Buy

BankIslami Pak

53.77

3.20

3.10

3.45

3.55

3.30

Bank.Of.Punjab

54.96

9.05

8.85

9.65

10.00

9.40

Dewan Cement

54.29

1.45

1.30

1.80

1.95

1.65

D.G.K.Cement

57.38

28.05

27.70

28.85

29.35

28.50

Dewan Salman

58.85

1.60

1.55

1.70

1.75

Dost Steels Ltd

Neutral

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

Fair Value

129.35 9,421.85 N/A N/A N/A 22.97

9.60

1.65

58.36

2.85

2.75

3.05

3.15

2.95

EFU General Insurance 56.18

43.90

43.35

45.10

45.75

44.55

EFU Life Assurance

59.40

74.35

73.15

77.35

79.15

76.15

Engro Chemical

51.53

177.70

177.20

Faysal Bank

76.21

16.70

16.55

17.00

17.15

Fauji Cement

51.54

4.90

4.85

5.05

5.10

4.95

Fauji Fert Bin

70.66

32.55

32.10

33.45

33.85

32.95

Fauji Fertilizer

58.74

109.60

109.20

110.45 110.90 110.05

Habib Bank Ltd

60.83

103.50

102.80

104.70 105.20 104.00

Hub Power

58.06

33.75

33.15

ICI Pakistan

62.86

131.80

130.90

133.80 134.90 132.90

Indus Motors

79.70

252.70

245.10

265.75 271.20 258.15

178.80 179.40 178.30

34.80

35.15

16.85

34.15

J.O.V.and CO

62.31

4.00

3.75

4.45

4.70

4.25

Japan Power

51.09

1.55

1.50

1.65

1.70

1.60

JS Bank Ltd

Rs Recommendations

9.90

2.65

2.80

2.85

Jah Siddiq Co

44.21

11.50

11.25

12.15

12.50

11.90

Kot Addu Power

45.16

58.66

39.50

2.70

39.30

39.90

40.10

39.70

K.E.S.C

51.34

Lucky Cement

49.87

70.85

68.85

MCB Bank Ltd

51.71

200.15

198.90

Maple Leaf Cement

44.03

2.75

2.70

2.95

3.05

2.85

National Bank

51.28

65.50

65.15

66.40

67.00

66.05

Nishat (Chunian)

63.46

22.55

22.15

23.30

23.65

22.90

Netsol Technologies

47.60

18.35

18.20

18.80

19.10

18.65

NIB Bank

50.31

2.70

2.60

2.90

2.95

Nimir Ind.Chemical

47.13

1.35

1.30

1.50

1.60

1.45

Nishat Mills

61.33

53.70

53.25

54.75

55.35

54.30

Oil & Gas Dev. XD

74.31

157.80

157.15

2.10

2.05

2.75

2.20

2.25

2.15

75.85

78.85

73.85

203.30 205.25 202.05

2.80

301

Buy

296.6

Buy

PACE (Pakistan) Ltd.

Positive

Pervez Ahmed Sec

60.03

2.20

2.05

2.45

2.60

2.35

P.I.A.C.(A)

47.68

2.15

2.10

2.30

2.35

2.25

Pioneer Cement

42.04

7.30

7.20

7.60

7.80

7.50

Pak Oilfields

55.85

248.25

246.45

252.75 255.55 251.00

Pak Petroleum

54.92

190.30

189.75

191.60 192.35 191.05

281.35

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

26.20

58.92

307.60 312.75 304.30

Technical Outlook

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

49.61

Arif Habib Securities

125.30 127.70 123.10

49.87 73.91 68.92 70.54 76.07 75.92

Brokerage House

61.10

Arif Habib Limited

118.50

Pakistan Oilfields Ltd

Rs Recommendations

57.50

62.45

295.85

Technical Analysis

Technical Outlook

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

Fair Value

58.30

61.65

120.70

72.75

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

57.95

59.70

299.15

Technical Outlook

Hub Power Co Ltd

Technical Outlook

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

TFD Research

Positive

56.70

60.30

80.94

LUCK closed down -0.34 at 72.84. Volume was 169 per cent above average (trending) and Bollinger Bands were 13 per cent wider than normal.

LUCK is currently 3.3 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into LUCK (mildly bullish). Trend forecasting oscillators are currently bullish on LUCK.

Positive

51.28 65.45 65.82 70.90 66.60 67.11

74.2

57.15

44.22

43.30

NML closed up 0.79 at 54.18. Volume was 14 per cent below average and Bollinger Bands were 28 per cent narrower than normal.

NML is currently 6.1 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into NML (mildly bullish). Trend forecasting oscillators are currently bullish on NML.

92.3

Technical Analysis

*Arif Habib Ltd AKD Securities Ltd

69.92

Attock Cement

Attock Refinery

DGKC closed down -0.63 at 28.40. Volume was 11 per cent below average and Bollinger Bands were 2 per cent wider than normal.

DGKC is currently 5.6 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of DGKC at a relatively equal pace.

Trend forecasting oscillators are currently bullish on DGKC.

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

Buy Buy

Allied Bank Limited

Attock Petroleum

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

61.96

TFD Research

65 59.97

1st 2nd Pivot Resistance 3.30 3.35 3.20

Rs Recommendations

Fair Value

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

*Arif Habib Ltd

84

AKD Securities Ltd

Rs Recommendations

Brokerage House

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

Buy

*Arif Habib Ltd

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

Rs Recommendations

Technical Outlook

Leverage Position

57.38 28.20 25.88 26.89 29.15 29.60

Fair Value

TFD Research

Fauji Fertiliser Bin Qasim Ltd

National Bank of Pakistan

Fair Value

Positive

Technical Outlook

MA (200-day)

Brokerage House

Brokerage House

43.29

MA (100-day)

KSE 100 INDEX closed down -7.98 points at 10,874.02. Volume was 25 per cent above average and Bollinger Bands were 14 per cent narrower than normal. As far as resistance level is concern, the market will see major 1st resistance level at 10,917.15 and 2nd resistance level at 10,960.35, while Index will continue to find its 1st support level at 10,842.00 and 2nd support level at 10,809.95.

KSE 100 INDEX is currently 8.2 per cent above its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into INDEX (mildly bullish). Trend forecasting oscillators are currently bullish on INDEX.

Rs Recommendations

RSI 1st 2nd (14-day) Support 53.01 3.15 3.10

55.85 248.73 231.27 232.00 254.21 255.83

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

107.94 26,982.02 N/A N/A N/A 155.33

Pak Suzuki

45.74

2.75

2.70

46.08

71.70

70.00

P.S.O. XD

57.51

277.35

275.70

P.T.C.L.A

51.76

18.95

18.80

159.00 159.55 158.35 2.95

76.00

3.05

78.60

2.85

74.30

281.95 284.90 280.30 19.25

19.35

19.05

Shell Pakistan

56.62

194.35

192.65

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

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

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

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

Sui North Gas

59.14

33.05

32.70

198.85 201.65 197.15 33.85

34.30

33.50

NBP closed down -0.16 at 65.84. Volume was 10 per cent below average and Bollinger Bands were 27 per cent narrower than normal.

NBP is currently 1.4 per cent below its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of NBP at a relatively equal pace. Trend forecasting oscillators are currently bullish on NBP.

FFBL closed up 0.91 at 33.01. Volume was 36 per cent below average and Bollinger Bands were 32 per cent wider than normal.

FFBL is currently 12.8 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into FFBL (bullish). Trend forecasting oscillators are currently bullish on FFBL. Momentum oscillator is currently indicating that FFBL is currently in an overbought condition.

HUBC closed up 0.26 at 34.42. Volume was 249 per cent above average (trending) and Bollinger Bands were 55 per cent narrower than normal.

HUBC is currently 1.6 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into HUBC (bullish). Trend forecasting oscillators are currently bullish on HUBC.

POL closed down -6.04 at 249.98. Volume was 15 per cent above average and Bollinger Bands were 34 per cent wider than normal.

POL is currently 7.8 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into POL (mildly bullish). Trend forecasting oscillators are currently bullish on POL.

Sitara Peroxide

76.46

13.95

13.70

14.45

14.70

14.20

Sui South Gas

43.55

23.90

23.50

24.75

25.30

24.40

Telecard

48.84

2.25

2.15

2.45

2.60

TRG Pakistan

56.55

4.20

4.10

4.45

4.65

4.35

United Bank Ltd

67.55

57.45

57.00

58.20

58.50

57.75

WorldCall Tele

51.06

2.50

2.45

2.65

2.75

2.60

2.40

Canada, China reach deal on insurance investment 8

Monday, November 15, 2010

Vienna Insurance mulls bond

SHANGHAI: A security guard stands at the entrance of the AIA building in Shanghai.-Reuters

Health insurers shake up model after US, overhaul NEW YORK: Become techsavvy. Bulk up. Venture abroad. Those appear to be among the most appealing alternatives for US health insurers with their core US markets in upheaval following passage of the healthcare overhaul, speakers at the Reuters Health Summit said this week.

Greater investment in information technology and international markets are certainties for several top companies, while others may also look to increase their scale to better handle the new reforms.

Standing pat is no option, said Mark Bertolini, the incoming chief executive of No. 3 US health insurer Aetna Inc. "I can't speak for what our competitors are doing. But when somebody says your whole industry is going to get put into a bag and shook up and then rolled back out on the table, if you are not thinking about what that means for you, I would feel badly for other people," Bertolini said.

"We can't stay where we are," he said. "We have to move. We have to change."

The new law imposes regulations and fees on insurers, and although it paves the way to expand coverage to 30 million uninsured Americans, it also threatens industry profit margins.

Bertolini, currently Aetna's president who will assume the top post at the end of the month, said he, current CEO Ron Williams and Chief Financial Officer Joseph Zubretsky have been contemplating the post-reform marketplace for more than a year in order to position Aetna properly.

One plank of their strategy involves greater investment in

health IT, where Bertolini sees a huge opportunity in weeding out wasteful spending in the healthcare system. He estimates 30 per cent of spending in the US healthcare system is wasted.

Aetna is far from alone.

UnitedHealth Group Inc has announced deals in recent months to acquire companies that specialize in software for hospitals and technology that eases information exchange.

Deal chatter has picked up involving insurer interest in healthcare IT companies, said Michael Neuberger, head of the healthcare group and managing director at BMO Capital Markets.

"When it comes to the payor side, I think what you're seeing is a realization that there's probably a need to find assets that add to their ability to continue to mine data," Neuberger said.

"It's really on that side of the equation where we're starting to see a lot of people have dialogue."

Liz Fowler, a top US government official overseeing the insurance industry, said companies may be looking to capitalize on new government incentives to improve care.

"What we are hearing is a lot of plans are starting to think about quality and measuring quality," said Fowler, deputy director for policy in the US Department of Health and Human Services' Office of Consumer Information and Insurance Oversight.

Aetna and Cigna Corp are among the insurers who view international markets as an enticing post-reform option.

Health insurers sell expatriate coverage to multinational companies that are increasingly globalizing. A rising middle

class of overseas consumers who can afford insurance products beyond what their governments offer provides another avenue for international growth.

"We continue to believe that the global expansion of our business is an extremely attractive opportunity and will continue to be a significant driver of our growth," Cigna CEO David Cordani said.

Cordani and others say companies may also look to become larger to better absorb the changes in the US market, although he cautioned such deals are not necessarily smart moves and may encounter opposition.

"Over time, you'll see some more scale acquisitions," Cordani said. "Bigger for sake of being bigger I don't believe is a winning strategy."

Similarly, while Fowler agreed that consolidation was possible, she cautioned that "it has been a priority for the administration to make sure that we have adequate competition."

"The whole idea with the exchanges is to get more plans competing particularly in a lot of the markets where you have one dominant player," she said, referring to the exchanges that beginning in 2014 will allow consumers to shop for coverage.

Even as some on Wall Street worry about the future of private health insurers in the new US market, Kris Jenner, portfolio manager for the T. Rowe Price Health Sciences Fund, sees a definite role for the industry.

Jenner said the new law is "providing a very generous benefit into a system that doesn't have strong cost controls." Reuters

VIENNA: Vienna Insurance Group said demand from emerging Europe for life products will help it meet its next year targets, and said it was considering issuing a ($695 million) subordinated bond.

The company said on Tuesday it expected 2011 pretax profit to rise about 10 per cent after cutting costs.

It also expected profit this year to grow by at least that rate.

A rise in life insurance premiums, up 17 per cent in the first nine months of the year, was the leading earnings driver.

The group has said its customers remain keen on conservative savings products -similar to its peers which include Swiss Life, Allianz and Generali .

Third-quarter pretax profit rose 11 per cent to 122 million euros compared with a forecast for 126 million in a Reuters poll.

"All round these are solid numbers and Vienna (Insurance) continues to deliver what management has targeted," Credit Suisse analysts wrote in a note to clients, adding that they expected growth to remain at the upper end of European peers.

Vienna Insurance, which said it had an equity ratio of 12.6 per cent, said it might issue a subordinated bond "to continue optimising the future-oriented equity base and capital structure". It gave no further detail.

Strong business in emerging Europe also boosted earnings, it said, adding that the picture was still mixed in the former communist bloc.

"The trends in central and eastern Europe are not uniform," Chief Executive Guenter Geyer said in a statement.

"In Austria, the Czech Republic and Slovakia we observe great interest in life insurance, while in Poland there is mainly a strong demand for non-life insurance products."

Its stock was 0.4 per cent higher at 38.99 euros by 0914 GMT, in line with the Stoxx European Insurers index. -Reuters

MetLife to stop writing long-term care policies NEW YORK: MetLife Inc will stop writing insurance policies to cover long-term medical care for the chronically ill, as the largest US life insurer becomes the latest to concede the business is not a viable proposition on its own.

Carriers faced with higher costs than they expected, resistance to double-digit rate increases and weak demand have been backing away from or out of the long-term care insurance business for years, though MetLife's move was seen as a surprise given its size.

MetLife, once the secondlargest writer of long-term care policies, said on Thursday it will stop individual coverage sales from December 30 and new enrollments into group plans next year. The company said it plans to look for ways to combine long-term care with other products in the future. Reuters

Insurers seeing people stay in all annuity types longer

Persistency of annuity raises risks for insurers Some insurers changing accounting assumptions

Risks seen from higher costs NEW YORK: Annuity customers are sticking with their policies longer, which is good for insurers in the short term but creates risks for them the longer they have to pay out some of the annuities' guaranteed benefits.

In the last few weeks executives at major annuity producers like MetLife, Hartford Financial and Genworth all said they are seeing elevated levels of "persistency," or the rate at which people with annuity products retain them.

"We do see persistency improving in our variable annuity business and that shouldn't surprise anybody, frankly, given where interest rates are and what the stock market is," MetLife Chief Financial Officer Bill Wheeler told analysts last month.

Demand for new policies is just as strong - MetLife had a record quarter in the three months to September, with variable annuity sales rising 35 per cent to $4.7 billion.

Actuaries say the key to the demand, particularly for variable annuities, is the "guaranteed living benefit" they pay.

Those benefits, which assure the annuity holder an income stream, are currently worth more to the recipient than they would receive in the market.

Whereas a fixed annuity offers a set monthly payment for the contract term, a variable annuity changes with the performance of the underlying portfolio.

The fact they are "in the money" means people are more likely to stay with them than in recent years, when depressed markets slashed their values and drove some people to switch into more financially advantageous products.

Those so-called "1035 exchanges," named for the relevant tax code section, have in the past been a key driver of variable annuity sales, as customers left one annuity for another with more advantageous financial terms.

"Consumers are demanding these guarantees and it really is

the value proposition for that product," said Bret Howlett, an insurance equity analyst at Standard & Poor's.

"I think it does obviously raise the risk profile of the group. We've seen price increases, asset allocation restrictions, less generous features, better hedging, but I think earnings could be volatile, especially in the near term ... because they've had such great sales of these variable annuities," he said.

ACCOUNTING CHANGES There are also questions about how customers' reluctance to get rid of annuities could affect the ultimate accounting for sales of the products.

Last month Ameriprise Financial surprised analysts when it said it was lengthening the number of years it takes to write down the costs it pays to acquire annuity customers -- mostly commissions for distributors and brokers that accountants call "deferred acquisition costs" or DAC. Generally, insurers review their DAC position once a year and record any benefit or charge in that quarter. If the amortization period is lengthened, the potential benefit to profitability could be lessened.

So far Ameriprise is the only company of note to change its amortization horizon, and accountants in the industry say they don't expect anyone else to make the change imminently.

But there are those who say it makes sense if a company really believes its customer profile has changed and people are going to stick with policies longer.

MetLife, for example, said it would stick with a 20-year amortization for its costs, while Ameriprise said it would need a longer period.

"For DAC unlocking companies are looking at some projection of what the likely outcome is over future years," said Noel Abtemeier, a fellow of the US Society of Actuaries, referring to expectations of how long customers will stay with a policy. "I could see a company saying we had been assuming a certain profile of lapses and it's not materializing." -Reuters

Insurers at KSE move both ways Staff Reporter KARACHI: Some mixed activities were observed in the insurance stocks last week at the Karachi Stock Exchange (KSE) with more than 10 million shares traded together in life and non-life stocks.

Pak Reinsurance was the volume leader with 5.68 million shares followed by Adamjee Insurance with 3.5

million shares.

Top gainers of the week include PICIC Insurance which increased by Rs3.44 to close at Rs6.64 and New Jubilee Life Insurance up by Rs2.35 to close at Rs43 while EFU General Insurance lost Rs1.42 to close at Rs44.46 and Century Insurance lost Rs0.84 to close at Rs10.65 to be the major losers of the week.

Prudential prices $1bn stock LONDON: Insurer Prudential Financial priced a $1 billion stock offering to help fund its acquisitions of two Japanese life insurance units from American International Group.

Prudential said it sold just over 18.3 million shares at $54.50 each, just under a 1 per cent discount from the stock's closing price of $55.02 on Thursday.

The insurer expects proceeds of about $970 million, it said in a statement.

Citigroup, Bank of America , UBS and Barclays are joint bookrunning managers on the offering. -Reuters

Allianz ups 2010 outlook after good Q3 FRANKFURT: Allianz beat forecasts with only a 9 per cent decline in third quarter net profit as property-casualty insurance turned in a strong performance. Quarterly net profit fell to 1.27 billion euros ($1.8 billion), beating the 1.16 billion euro average estimate from a Reuters poll of 15 banks and brokerages.

"I expect our full-year operating profit to trend towards the

upper end of our target range of around 7.2 billion euros plus or minus 500 million euros," Allianz Chief Executive Officer Michael Diekmann said in a statement on Wednesday.

Analysts foresee an operating profit of 7.65 billion euros for 2010, according to the Reuters poll.

Quarterly operating profit got a boost from a near 9 per cent gain in property-casualty insurance and a 42 per cent rise in asset management, while lifehealth fell by nearly a third.

Allianz shares are up more than 6 per cent since the start of the year, outpacing a 4.8 per cent rise in the Stoxx 600 Europe insurance index.

According to Thomson Reuters StarMine, which weights analysts' forecasts according to their track record, Allianz trades at 8 times 12-month forward earnings, a premium to Europe's No 2 insurer, Axa , at a multiple of 7.2. -Reuters

HDFC to infuse Rs1bn in insurance JV by FY12 NEW DELHI: India's top mortgage lender HDFC Ltd over the next six months will infuse 500 million rupees ($11.27 million) in HDFC Standard Life, a leading Indian private insurer, its chairman said on Tuesday.

It will also infuse 1 billion rupees in the insurance firm, a joint venture between HDFC and Britain's Standard Life , in the next fiscal year, Chairman Deepak Parekh told reporters. ($1=44.37 rupees) -Reuters

Woods acknowledges spectators after chipping during the Australian Masters golf tournament

9

Monday, November 15, 2010

Federer downed

by Monfils in Paris semi PARIS: Roger Federer failed to break his Paris Masters jinx when he fluffed five match points in a 7-6 6-7 7-6 semifinal defeat by local favorite Gael Monfils on Saturday.

The 12th-seeded Monfils will meet Robin Soderling in Sunday's final after the Swede saved three match points before ending Frenchman Michael Llodra's brilliant run with a 6-7 7-5 7-6 win.

Federer had five match points at 6-5 up in the final set but Monfils saved them to force a tiebreak, which he won 7-4.

While the 16-times grand slam champion will have to wait at least another 12 months to land a maiden Paris Masters title, Monfils will contest his second successive final here.

"I tried to stick to my tactics but it was not easy because Roger served pretty well throughout," Monfils said courtside.

"I tried to do simple things, to be aggressive. I did it, it's wonderful." Backed by the 14,500 Bercy crowd, Monfils put Federer under pressure from the start as the former world number one had to see off three break points. After failing to convert his chances, the Frenchman came out all guns blazing in the first set tiebreak and bagged it 9-7.

Just when it seemed that the Frenchman was within touching distance of his first win over Federer, Monfils lost his cool and his way to surrender the second-set tiebreak 7-1.

The Swiss was on a roll and opened a 3-0 lead in the decider as he effortlessly outpaced Monfils. Monfils did not give up and upped the pace to level for 4-4. -Reuters

Containing batsmen was key, says Gul DUBAI: Umar Gul sparked Pakistan's fightback on the second morning at Dubai as he removed nightwatchman Paul Harris, AB de Villiers and Ashwell Prince in quick succession in the midst of his spell of 3 for 15 in eight overs.

His dismissal of de Villiers, bowled through the gate by one that nipped back in off the pitch, was particularly eyecatching and brought Pakistan right back into the game after South Africa had started the day on a healthy 311 for 3. "I have worked very hard on the incutter," revealed Gul. "I bowled a couple of outswingers to de Villiers before slipping in the incoming delivery."

Pakistan managed to maintain control in the field despite the loss of Wahab Riaz, who has been ruled out of the remainder of the series with a muscle strain. Harris clung to the crease in a 42-minute duck - setting a new record for South Africa in the process - while Kallis clipped an early boundary off his legs, but the scoring rate then stalled completely as just two more boundaries were struck in the opening session despite Pakistan's depleted resources.

"We had a team meeting during it was felt that we had conceded around 30-40 extra runs yesterday which we shouldn't have," explained Gul. "It was decided that we would try to contain them today. There was some pressure, obviously, due to the loss of Wahab Riaz.

However, Younis Khan bowled really well and we built pressure by restricting the flow of runs. The thinking was that if we managed to do so, the batsmen would make mistakes

Laxman takes India towards 1st innings lead

Morkel, Botha put SA in control DUBAI: Morne Morkel and Johan Botha tore through Pakistan's batting order as the designated hosts collapsed to 248 all out on the third day of the first test at the Dubai International Cricket Stadium on Sunday.

After off-spinner Botha dismantled the middle order by picking up three quick wickets, paceman Morkel made sure South Africa took a firm control of the match as he grabbed five for 54 to give the visitors a first innings lead of 132.

The hosts lost their last five wickets for the addition of just 28 runs and face an uphill task to save the test.

The South African made a confident start to their second innings as Graeme Smith (20 not out) and Alviro Petersen (26) put on 47 runs for the first wicket to extend their overall lead to 179 at tea.

Petersen was trapped lbw by left-arm spinner Abdur Rehman with the last ball before tea.

Earlier, Azhar Ali was the only Pakistan batsman to defy South Africa for any length of time as he ground his way to 56 off 172 balls.

He was eventually dismissed when he fended a Morkel short ball to Hashim Amla at short leg as Pakistan's innings fell away in the face of some disconcerting bounce that Morkel extracted off a lifeless pitch.

Paceman Dale Steyn sparked the collapse after lunch when he had Adnan Akmal (10) caught behind before Morkel took centre stage.

The tall bowler had Rehman (one) caught at third slip before he dismissed Ali. Morkel then ended the innings in the space of five balls when he had both Wahab Riaz (five) and Saeed Ajmal (two) caught by keeper Mark Boucher.

Off-spinner Botha ended the innings with figures of three for 61 as he found both bounce and turn to trouble the batsmen. -Reuters

DUBAI: South African cricket team captain Graeme Smith looks at Pakistani cricketer Umar Akmal as he jumps to catch the ball on the third day of the first test match between Pakistan and South Africa at the Dubai Cricket Stadium.-Reuters

Australia stumped over first Ashes test squad SYDNEY: Australia announce their squad for the first Ashes test at a gala event on Sydney harbour on Monday but England may not be closer to knowing the exact team they are going to face at the Gabba even after the bunting is packed away.

Announcing the squad 10 days before the Brisbane test may have been originally thought of as a display of confidence but after a long run of losses, a string of injuries and form slumps for key players, it could end up looking more like hubris.

The four-strong panel of selectors are expected to hedge their bets by naming a squad of up to 14 players before reducing the pool after England's final warm-up match against Australia A and another round of Sheffield Shield action this week. With a lively wicket expected at the Gabba for the first test, Australia were always likely to pick at least three pacemen along with a spinner to try and exploit what they perceive to be a fragility in

England's batting line-up.

In the post-Shane Warne era, the name of the spinner is no longer one of the first on the teamsheet and there are question marks over the form of current front-runner, off-spinner Nathan Hauritz, after he took a hammering on the recent tour of India.

Hauritz may have secured his spot with a snappy 2-47 for New South Wales against Victoria on Friday and believes he deserves to be in the team despite the "massive learning experience" against the Indians. "I've bowled pretty well over the last 12 months," Hauritz, who is coming under pressure from young leg-spinner Steven Smith, told Reuters last week. "Obviously the last couple of weeks weren't the best I've bowled but that's part of life, you're not always going to have a good game. But I know I've done a lot of work in the nets and the ball's coming out a lot better."

INJURY CONCERNS Mitchell Johnson is still expected to lead the attack

despite being sent back to club cricket this weekend to try and arrest his own slump in form.

Ben Hilfenhaus aside, the other fast bowling contenders have only returned from injury in the last couple of weeks.

Doug Bollinger has had only one club game to his name since returning from India with a side strain and Peter Siddle and Ryan Harris have played little more, although Harris's nine wickets for Queensland against Tasmania last week was impressive.

Shane Watson looked one of Australia's sharpest players with both bat and ball in the lost one-day series against Sri Lanka but his fellow opener Simon Katich was also back in club cricket this weekend to prove his recovery from a thumb injury.

Skipper Ricky Ponting is in rude health if not the top of his imperious form but his vicecaptain Michael Clarke's back problem worryingly resurfaced when he was playing for New South Wales on Friday. Reuters

GUANGZHOU: Venise Chan from Hong Kong returns a back hand against Bermet Duvanaeva from Kyrgyzstan during the tennis Women's team 1st round event.-Reuters

Don't risk Malinga in tests before WC, Jayawardene says COLOMBO: Fast bowler Lasith Malinga has become such a precious commodity that Sri Lanka are considering not risking him in any of the upcoming three tests against West Indies. The spearhead of the Sri Lankan bowling attack in one-dayers along with Muttiah Muralitharan, Malinga was left out of the first test in Galle starting Monday. He may not play in the rest of the series because Sri Lanka intends keeping him injury-free, fit and fresh for the 2011 World Cup which begins next February.

"With the injury he has, it could easily come back," Mahela Jayawardene said. "It's a very rare injury on the knee and him playing three Tests against West Indies would definitely hamper him. I don't think we'll risk playing him in Test cricket just before the World Cup. The selectors [will] probably play him in a few of the one-dayers against West Indies."

Malinga, who bowls with a slinging action, is the third highest wicket-taker in tests for his country with 101 wickets from 30 tests. In the last test series Sri Lanka played at home against India in June, Malinga played in the first and third test and was rested for the second.

He played a stellar role in Sri Lanka's historic 2-1 maiden one-day series victory in Australia this month winning the Man-of-the-Series award for his contribution with the ball as well as the bat.

"We've got enough ammunition now with Dilhara Fernando and Dammika [Prasad] who bowled really well in Australia, Thilan Thushara coming back from injury and playing in the threeday game, and [Chanaka] Welegedara as well," Jayawardene said. "Plus, the two young boys, Suranga Lakmal and Nuwan Pradeep, who bowled really well with the A team. -Agencies

HYDERABAD: Vangipurappu Laxman scored his 48th halfcentury to keep India on course for a first-innings lead as New Zealand picked up vital wickets on day three in the second test on Sunday.

At tea, the hosts were at 323 runs for five wickets, trailing by 27 runs, with Laxman (74 not out) and captain Mahendra Singh Dhoni (10) at the crease.

The hosts lost the wickets of Rahul Dravid (45) and Suresh Raina (20) in the second session after the loss of Sachin Tendulkar (13) in the fifth over of the day.

Captain Daniel Vettori picked up Tendulkar and Raina to add to his overnight scalp of Virender Sehwag to lead a disciplined bowling and inspired fielding performance by the visitors. Dravid and Laxman added 75 runs for the fourth wicket before the former was trapped plumb in front by paceman Tim Southee. The stylish Laxman, playing his first test in front of his home crowd at the Rajiv Gandhi International Stadium, also added 52 runs for the fifth with Raina, who holed out to Martin Guptill at midwicket trying to clear Vettori out of the ground. Tendulkar tried to break the shackles, imposed on him by some fine swing bowling by paceman Chris Martin, by dancing down the wicket to Vettori but only managed to get a thick edge.

Ross Taylor at slip took a smart one-handed catch. -Agencies

Pakistan innings against SAfrica

Umer's horrible stroke brought downfall DUBAI: Prodigiously talented, Umer Akmal is proving to be the prodigal son of Pakistan cricket.

His sublime skills have never been in doubt, but question marks over his temperament keep piling, at a higher rate than his recent run-scoring.

And he gave another cleaver for his critics with a highly injudicious shot Sunday, that probably turned tide of the second Test.

Even his most ardent supporter was left hanging his head in shame as Umer virtually gifted his wicket away, at a time when Pakistan most needed him to stay. To find an analogy, Nero would make a perfect fit‌ playing the fiddle as Rome burnt around him.

His hara-kiri mode was absolutely unnecessary. It was insane and his charge to Johan Botha will, in time, become as difficult to answer as the question of the chicken crossing the road.

This was his 17th Test innings and he had scored just one half century 79 against England at Lords which want an answer from the selection committee why they are persisting him despite such a poor showing.

Pakistan were well-placed at 196 for four when Umer arrived at the crease in the first session of day three.

They had lost the wickets of Younis Khan and captain Misbah-ul-Haq in quick succession, but Azhar Ali was looking rock-solid at the other end. He just needed a partner to follow his ways and grind the South Africa attack, writes APP Sports Correspondent .

The Proteas' first innings score of 380 was certainly a tough challenge, but not impossible to overhaul. Azhar had that confidence, but Umer seemed to be overconfident.

He started with a couple off

his first ball, which happened to be the last of Botha's that particular over. Azhar played out the next over of Paul Harris without scoring a run.

That brought Umer back on strike against Botha. He took a couple off the first ball and played the next two on merit.

Then, as we have seen so often in the past, he got struck by a bout of insanity.

He came charging down the wicket, like he was playing a five-over game and not the five-day version.

Without reaching the pitch of the ball, he attempted a wild heave over mid-wicket. Crazy shot had a crazy ending. A top edge floated to Dale Steyn at point like a Thanksgiving gift.

Inthikab Alam, the Pakistan manager, was sitting the press box when that happened. He looked exasperated and could even be forgiven for feeling suicidal as a staunch supporter of Pakistan cricket. Any fan, of any team in any sport would have been nauseous by such nonchalance.

"This is definitely an irresponsible shot and we may consider fining him," Intikhab said at the moment. "I am really disappointed at the way he hit that wild shot."

Disappointment was evident on the face of former Pakistan wicketkeeper Anil Dalpat as well. Dalpat rated Umer highly after his impressive performance in New Zealand and Australia, but he is gradually losing faith a after a disappointing tour of England for the batsman and his errant ways at the crease.

"Patience and responsibility is the name of the game in Test matches, but Umer really played a stupid stroke to put Pakistan under pressure," Dalpat said.

"I had a lot of respect for Umer, but the way he threw his wicket is really thought provoking." -APP

10

Analysis & Feature

Monday, November 15, 2010

G20 STALEMATE POINTS UP DISRUPTIVE POWER SHIFT l Seoul G20 shows shift of power from old order to new l Stalemate on imbalances calls U.S. leadership into question l Without coordination, global adjustment could be disruptive

E

conomic power is leeching from the old world to emerging markets. The politics of globalisation are not keeping pace with this shift. And that makes it hard to agree joint action to tackle urgent issues such as how to reduce China's external surplus.

The Group of 20 summit in Seoul amply corroborated each of these truisms. The risk now is that, in the absence of policy coordination, a purely market-driven adjustment of global economic imbalances will be messier than it need be.

And where market forces are not allowed to prevail, as is the case with China's exchange rate, the temptation for politicians in the United States and Europe to try to force the adjustment through tariffs and import barriers can only grow.

"There is a pervasive sense that the G20 has reached the limit of cooperative efforts towards rebalancing of the world economy," said Eswar Prasad, a Cornell University professor and a senior fellow at the Washington-based Brookings Institution.

With advanced economies barely plodding along while emerging markets are enjoying red-hot growth, reconciling the different types of policies required has become difficult, Prasad said.

"In an increasingly integrated world economy with emerging markets playing a prominent role, cross-border spillovers of domestic poli-

cies then set up a situation ripe for conflict," he added.

These conflicts were on show in Seoul.

Emerging economy members of the G20 flailed the easy-money policies of the Federal Reserve, the U.S. central bank; President Barack Obama, beset at home by high unemployment and low growth, urged Chinese President Hu Jintao to ease the pressure on American manufacturers by letting the yuan rise faster.

But the writ of the United States in the global economic system no longer runs unchallenged.

Gone are the days when a U.S. Treasury secretary could gather four counterparts around a table and set in motion sweeping changes to exchange rates and trade positions.

In the eyes of policymakers in many developing countries, U.S. primacy and credibility have been eroded by the global financial crisis, which had its origins in the U.S. subprime mortgage meltdown.

The ultra-loose monetary and fiscal policies that the United States has adopted in response is testing faith in the dollar to destruction -- and not just among the likes of China and Russia.

No less a figure than World Bank President Robert Zoellick, himself a former U.S. Treasury official, said last week it was time to start thinking about building a new monetary system.

So it is little wonder that Washington has repeatedly failed to get Beijing to do its bidding on the yuan. In Seoul, a different tactic fizzled: the G20 refused to back a U.S. plan for numerical targets for current account surpluses and deficits -- a roundabout way of applying peer pressure on China.

Instead, Hu stuck to Beijing's well-rehearsed stance that the yuan's rate of climb would remain gradual and calibrated to China's national interest. In case someone had not heard the first time, Hu repeated his position at an Asia-Pacific leaders' meeting on Sunday in the Japanese port city of Yokohama.

Stewart Patrick with the Council on Foreign Relations in New York said the Fed's recent decision to embark on a $600 billion bond-buying programme had undercut Obama at the summit.

Moreover, his party's trouncing in mid-term Congressional elections had made his G20 counterparts sceptical of the president's ability to deliver on global commitments "Confidence in U.S. global economic leadership continues to wane," Patrick said.

Illustrating how the sands are shifting, the G20 gave its blessing to developing countries such as Brazil that opt for capital controls to prevent incoming walls of cash from pushing up already

overvalued exchange rates.

Not long ago, such curbs were anathema to the United States and the IMF. In another nod to the growing clout of developing countries, the Seoul summit formally endorsed a deal that gives them more power in the running of the IMF, largely at Europe's expense.

"On balance, this G20 meeting was a victory for emerging markets," commented Lena Komileva,

head of G7 market economics at Tullett Prebon.

The G20 is not doomed to deadlock as emerging giants try to wrestle power from advanced economies. As well as settling on a redistribution of chairs and shares at the IMF, the group agreed new rules designed to avert future bank collapses.

But the Seoul stalemate over imbalances points up the group's limitations when it is not confronted by an immedi-

ate crisis, as it was at the first G20 summit two years ago.

Then, the freezing up of global credit markets and the onset of recession concentrated minds and generated a coordinated stimulus in response.

Today, divergent trade and inflation trends are leading to tension rather than policy coordination, according to economists at J.P. Morgan.

"Ironically, this tension is likely to produce a desired

aggregate outcome -- an easier global monetary policy setting that increases the likelihood of a strong global growth outcome next year.

"However, widening imbalances alongside inappropriately synchronised policy stances raise concern that the eventual global policy normalisation will prove far more disruptive than necessary," they wrote in the bank's weekly Global Data Watch. -Reuters

Obama's Asia frustrations raise protectionist risks T he risks of a wave of protectionist sentiment on Capitol Hill just got higher after President Barack Obama struggled to win over wary leaders of export-driven Asian economies.

Obama's message to trade surplus nations during his 10day swing through Asia was unwavering: the path to global prosperity is not "simply paved with exports to America".

But if he was heard, he is not being heeded. "The failure of movement of the Chinese does not bode well for heading off new trade restrictions (in Congress)," said Fred Bergsten, director of the Peterson Institute for International Economics in

Washington.

"If we can't get the two sides to tango, this is going to cause continued problems for world growth and potential future crises, and in the short run for potential protectionist outbreaks."

Even before last week's G20 summit, China and Germany had quashed Washington's proposal to set numerical targets for current account imbalances that risk destabilizing the global economy. When the leaders of the group -- whose economies account for more than 80 percent of global output -- met in Seoul, there was no agreement even on how to identify such imbalances.

Chinese President Hu

Jintao told an Asia-Pacific summit in Japan on Sunday that the global recovery is neither well established nor balanced and that protectionism is on the rise.

But there was no sense that Beijing sees eye to eye with Washington on how to go about achieving the rebalancing needed to avert the risk of a trade war.

China cried foul over the Federal Reserve's easy money steps to boost the U.S. economy and ruled out a sharp rise in the yuan, which would suck in imports and boost domestic demand.

U.S. lawmakers assert that China keeps its currency undervalued by as much as 40 percent, giving its manu-

facturers an unfair advantage against imports and making Chinese exports cheaper.

Bergsten's institute reckons the yuan is 17 percent undervalued against a basket of currencies.

In short, Obama returned to Washington on Sunday with little to show voters who, angry about high unemployment, handed control of the House of Representatives back to Republicans on Nov. 2 after an election campaign marked by anger over China and the loss of U.S. jobs to cheap imports.The president failed to clinch even a bilateral victory on the sidelines of the G20 summit: the conclusion of a long-stalled free trade pact with South Korea.

The U.S. Chamber of Commerce has warned that 340,000 U.S. jobs are at risk if the pact falls through.

"It is hard to imagine how the summit could have gone any worse for the U.S. Treasury and the president," said Simon Johnson, a former IMF chief economist.

"The Chinese are digging in hard on their exchange rate; this is headed towards a mutually destructive trade war."

So far predictions of a descent into a 1930s-style tariff barrier war have been proved wrong. And the rhetoric is pulling the other way: the communiques of both the G20 and APEC summits resounded with pledges to

refrain from competitive devaluations, maintain open markets and fight protectionism.

However, it may be too early to sigh in relief. The summiteers parted with rifts unbridged and Obama returns home to pressure from voters to do something about a stubbornly sluggish economy.

"This strong language is reassuring, but does not preclude a trade war from breaking out if the U.S. economy in particular remains weak and China moves too slowly," said Julian Jessop, chief international economist for Global Economics.

A new Congress takes charge in January, with trade

sanctions against China already passed by the House of Representatives and waiting for approval in the Senate.

The new Congress will include a number of freshly elected conservative Tea Party members who may not share the Republican Party's traditional enthusiasm for trade, promoting isolationist sentiment that is normally kept on the fringe of U.S. politics.

"The shift in the balance of power (in Congress) is likely to cause a more protectionist approach to foreign economic policy," said Tony Twine, senior economist at research group Econometrix.-Reuters

Suu Kyi freed, but future uncertain The figurehead of Myanmar's fight against dictatorship, Aung San Suu Kyi, was freed from house arrest on Saturday, a move seen an attempt by the military junta to gain some credit for its much-criticised political process.

The release of the Nobel Peace Prize winner will be welcomed by the international community and could be the first step towards a relaxing of Western sanctions on the regime because of its atrocious human rights record.

But the 65-year-old prodemocracy leader faces an uncertain future in a changing political landscape in which loyal comrades have defied her by courting public support and

participating in last Sunday's election, which Suu Kyi's allies have long rejected.

Below are key issues relating to her release. * Although Suu Kyi's freedom has long been a demand of the international community, it is unlikely to lead to any near-term easing of sanctions, especially while an estimated 2,100 other political prisoners remain in detention.Western governments have welcomed her release but will probably wait for the new military-dominated political system to take shape before reviewing embargoes. They know Suu Kyi has been released and re-arrested before and there's nothing to suggest this won't happen again.Immediately after her

release, several governments urged Myanmar to free more political prisoners. * Her release is almost certain to sharpen the sanctions debate behind the scenes.

Some U.S. and European investors are keen to tap into Myanmar's vast resources, including rich natural gas reserves. Myanmar's neighbours, Thailand, China and India, are already snapping up contracts.

Some senators in Washington also warn that Myanmar will fortify its political and economic ties with China if the United States continues to ostracise the regime.

It might decide a re-think of its policy is in order. * It is not known if Suu Kyi

will continue her role as de facto leader of Myanmar's prodemocracy campaign. Few doubt she will fade from the scene, but by staying involved she will remain on a collision course with the powerful generals. Her first comment when emerging from her home on Saturday was a call for unity, adding: "only then can we achieve our goal". * The pro-democracy camp is now divided between an old clique who are rebelling against the new system and progressives who believe a tiny role in a flawed process is better than decades longer on the sidelines. If Suu Kyi retains her political role, she might have more than the military to contend with.

* Freeing her is a doubleedged sword for the generals: while it could earn them some credibility after an election tainted by widespread fraud allegations, it could easily steal domestic attention away from a political transition the junta has struggled to sell to its sceptical people. In the eyes of the power-hungry generals, Suu Kyi is still a threat. * Suu Kyi rarely cooperates with the regime and has gained notoriety for her provocative and rousing speeches that won her the hearts of the public but have contributed to her long periods of incarceration.It is possible she will agitate them again, and there is a chance the junta will cook up another dubious reason to confine her

to her home. While she remains free, the military is likely to follow her every move and wait for her to slip up. * Myanmar's people tolerated an election in which they did not really believe, but some robust rhetoric from the charismatic Suu Kyi and her party might be enough to spark some kind of mass protest against a political process that will entrench military rule and continue to deny the people freedoms and economic development.The regime has spent years carefully plotting a water-tight transfer of power that bears some resemblance to democracy and is supported by its allies. It will use all means possible to uphold this and in

Myanmar, that could mean brutal suppression of dissent. It has happened several times before and each time, the military prevailed. * Although unlikely, there is an outside chance of a power grab by another faction inside Myanmar's massive military.

Resentment could be simmering, especially since many generals were overlooked for promotion in a recent reshuffle and forcibly retired by junta strongman Than Shwe.Former soldiers among the National Unity Party may also have an axe to grind. Many have attributed their thrashing in Sunday's election to cheating by their opponents in the juntabacked Union Solidarity and Development Party. -Reuters

Israel present US settlement plan to cabinet JERUSALEM: Israeli Prime Minister Benjamin Netanyahu presented a US plan to his cabinet on Sunday that would extend a freeze on West Bank settlements for 90 days in return for diplomatic and security incentives.

Washington wants Israel to renew a freeze on building settlements so that talks can resume with Palestinians, who walked out of negotiations after just a few weeks in September when Israel refused to extend a 10-month settlement freeze.

Under the US proposal, if Israel extended the freeze Washington would pledge not to seek further extensions and to veto any attempts at the United Nations to force a unilateral peace settlement. US security aid to Israel would also be upgraded.

"I will insist that in any proposal Israel's security needs will be addressed, both in the immediate term and regarding

the threats facing us in the coming decade," Netanyahu said in public comments before the cabinet meeting.

The prime minister has previously said any settlement moratorium will not apply to areas around East Jerusalem that Israel captured during a 1967 war and the Palestinians want as the capital of a future state.

Secretary of State Hillary Clinton shared the plan with Netanyahu at a US meeting last week, a diplomatic source said.

A spokesman for Palestinian President Mahmoud Abbas said there had been no official word regarding a renewed Israeli freeze on housing starts in the occupied West Bank.

"An official Palestinian commitment will come only after President Abbas hears officially from the American administration what is going on between them and the Israelis," Nabil Abu Rdainah

Sarkozy reappoints Fillon as French prime minister

told Reuters.

Under the US plan, Israel would declare a further, three month suspension of construction in the West Bank, land it captured in a 1967 war where Palestinians seek a state. Any building launched since the original moratorium ended late in September would be frozen, the diplomatic source added.

Among the pledges offered to Israel by Washington was a guarantee to veto any resolutions brought to the United Nations Security Council that seek "to impose a political settlement on Israel," the source said, speaking on condition of anonymity.

The US would also undertake to veto resolutions deemed anti-Israel in the United Nations and other international organisations, a move that could make Israel less vulnerable to threats made by some Palestinians to declare statehood unilaterally in the event that peace talks fail.-Reuters

Somali buccaneers released British couple NAIROBI :British couple Paul and Rachel Chandler released by Somali Pirate on Sunday after holding them hostage for more than a year.

Somali pirates kidnapped the retired couple on October 23 last year after hijacking their 38-foot yacht Lynn Rival in the Indian Ocean off Seychelles.

"I'm fine, thank you, enjoying being free, but we are still in Somalia. We are with the good guys now. We will be making our way to Nairobi later in the day today," Rachel Chandler told Reuters by telephone.

Mohamed Aden Tiicey, a senior official in the town of Adado, told Reuters the

Chandlers were handed over early on Sunday after the payment of a ransom. "The Chandlers are with me now.

They are free and safe," he said.

Abdi Mohamed Elmi, a Somali doctor who has been involved in efforts to free the Chandlers, told Reuters the couple would leave Adado by aircraft. A plane left Kenya's capital Nairobi on Sunday morning to collect them.

"We succeeded in getting the British couple released. We did our best to achieve this good news," he said.

Somali pirates typically hijack merchant vessels, take the ships to coastal towns they control and hold them until a ransom is paid. With ransoms

usually in the millions of dollars, the lucrative trade has continued despite foreign naval patrols.

According to the International Maritime Board, ship hijackings hit a five-year high in the first nine months of 2010 with Somali pirates accounting for 35 of the 39 ships seized.

According to Ecoterra, a rights group that monitors shipping in the Indian Ocean, more than 500 crew members and nearly 30 ships were still being held by Somali pirates as of November 10.

While the pirates usually focus on larger ships, a few yachts have also been seized.Reuters

PARIS: President Nicolas Sarkozy reappointed his trusted ally Francois Fillon as France's prime minister on Sunday, seeking to shore up his position 18 months before the next parliamentary election.

"The president has asked the prime minister to put forward a new government," a statement from Sarkozy's office said.

Fillon submitted his government's resignation late on Saturday before a long-awaited ministerial reshuffle.

Fillon said in a separate statement he planned to enter a new period of government with determination, on the back of the reforms carried out since he first became prime minister at the start of Sarkozy's term in 2007.

"After three-and-a-half years of brave reforms, carried out despite a severe global economic and financial crisis, I am starting ... a new phase with determination which will allow our country to strengthen the growth of the economy to help jobs, promote solidarity and safeguard the security of all French people," he said.

Sarkozy had been widely expected to reappoint Fillon and to avoid any surprises in his cabinet reshuffle.

An official at the prime minister's office said the line-up of the new government would be announced on Sunday or Monday.

Fillon has devoted his career to politics, holding various government posts including labour, social affairs, education, and post and telecommunications ministries.

He made his debut in centreright administrations in 1993 as minister for higher education and research.

As labour minister in 2003, he shepherded an important change to France's pension system through parliament, despite union protests, obliging civil servants to contribute for the same length of time as private sector employees to qualify for a pension.-Reuters

CONTINUATION No #1

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according to a joint statement released as the Seoul summit ended. The Philippine peso fell the most in Asia last week as the central bank limited the supply of dollars to banks to curb gains in the currency, which touched 42.47 on Nov. 4, the strongest level since May 2008.

Elsewhere, Indonesia's rupiah fell 0.3 per cent during the week to 8,926 per dollar and China's yuan gained 0.17 per cent to 6.6370. The Taiwan dollar weakened 0.7 per cent to NT$30.762, the Thai baht dropped 0.5 per cent to 29.83 and Singapore's dollar declined 0.8 per cent to S$1.2977. -Agencies

No #2

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also help enable the government to ensure early rehabilitation of flood-hit people. Meanwhile, Amin Faheem ruled out shortage of sugar in the country and absolved the ministry of trade of negligence in this regard. "There is no shortage of the commodity in the country, nor the trade ministry committed any negligence in this respect", said the minister. Briefing the Prime Minister about demand and supply of sugar in the country, the Commerce Minister said provinces were being provided with sugar in accordance with recommendations of the Council of Common Interest (CCI).

The provinces have also been directed to lift their share of sugar from stocks of Trading Corporation of Pakistan (TCP) as early as possible, he added. Makhdoom Amin Fahim told the prime minister that the Commerce Ministry was endeavouring to establish better trade relations with Central Asian States through Afghanistan. -Agencies

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Limited (NCCPL) data. However, foreign investment was reduced by 29.2 per cent WoW compared with $12.66 million witnessed in week ended on 5th November - maybe due to holiday on 9th November, otherwise decline would have been lower.

During the week, offshore investors opted for buying fresh position as foreigners bought shares worth $19.89 million and sold $10.92 million, resulting in net-buying of $8.97 million during the week. Furthermore, Mutual Funds and local companies remained on the buying side with shares worth $3.32 million and $1.75 million respectively. On the other hand, biggest weekly selling were witnessed from banks which offloaded $30.05 million of shares in the local bourse against the buying of $20.91 million, thus turning the net selling worth of $9.13 million. Moreover, local individuals and other organisations also joined trend as they net ejected $2.45 million and $1.98 million respectively.

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being punished for the sins of sugar mill owners and hoarders of sugar who are responsible for inflating the price of the commodity.

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barrel was comfortable for consumers. Global oil prices are now near $86. The International Energy Agency (IEA) said Friday Opec was raising production fast enough to meet growing demand and reducing compliance to the group's target for output cuts.

The Organization of the Petroleum Exporting Countries said in a report this week its 11 members bound by oil production targets -- all except Iraq -- produced 26.89 million barrels per day (bpd) of crude in October. -Reuters

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utilise the winds of the area for producing 150 megawatts of

11 China to consider hot money policies

International & Continuation

Monday, November 15, 2010

power. The main objective of the projects was to improve the capacity of Pakistan government to address the country's most critical energy needs. It will also reduce the dependence on imported fuel and oil and will save Pakistan $45 million (Rs3.8 billion) per year in fuel cost. The project using new technology of 'clear' power will serve about 600,000 homes in the area.

Richard Holbrooke addressing briefly on this occasion said it is a best example of private and public partnership between the two countries as Ministry of Water and Power will represent Pakistan while USAID and US Overseas Private Investment Corporation (OPIC) and American Power Company (AES) Corporation, a private company are joining hands to address the important problem being faced by the people of Pakistan.

US ambassador to Pakistan Cameron Munter speaking on the occasion said the project will address the key issue of shortage of electricity in Pakistan. He said it will have impact on the future relations of two countries and provide a solid base to further enhance and promote these ties. Secretary Water and Power Javed Iqbal appreciating the contribution by the American government and personal interest taken by Richard Holbrooke said the project would further strengthen the bilateral relations. -APP

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Ghani, Chief Minister Sindh Syed Qaim Ali Shah, Chief Minister Balochistan Nawab Mohammad Aslam Khan Raisani, Acting Governor Gilgit-Baltistan Wazir Baig and Azad Jammu and Kashmir Prime Minister Sardar Attique Ahmed Khan presented the future development vision of their respective provinces and areas before the forum. In his speech Punjab Senior Minister Khosa said Punjab needed 900 million dollars to establish model villages after floods; of them, 700 million dollars are needed for large model villages and $200 million for the smaller ones.

In his remarks, KP Chief Minister Amir Haider Khan Hoti said flood was not only the problem for the province but militancy is also an unresolved issue. Speaking on the occasion, Governor KP Owais Ahmed Ghani said that the province needed support from the international community to develop the flood-affected areas.

Governor Owais Ghani said his provinces needs Rs107 billions during the next 18 months for reconstruction, adding another Rs66 billion are required for social sector and Rs41 billion for infrastructure. Speaking on the occasion, Chief Minister Sindh, Qaim Ali Shah said that efforts were on to rehabilitate the flood affected people adding that about 16 districts of the province suffered losses due to floods. He said that the economy of the country was performing well before the catastrophic floods.

He said that Sindh government would be imposing flood taxes and a law in this regard is being framed which would be presented before the provincial assembly during its upcoming sessions.

Speaking on the occasion, Chief Minister Balochistan, Nawab Aslam Raisani said that peace should be first priority which would lead to development and thereby prosperity. Earlier, US Special Representative on Afghanistan and Pakistan Richard Holbrooke called on Federal Minister for Finance Dr Shaikh and discussed matters of mutual interest with special focus on the ongoing Pakistan Development Forum (PDF).

Holbrooke appreciated Pakistan for organising the event to discuss the future development agenda of the country with development partners and donors. Special US representative for Pakistan and Afghanistan Richard Holbrooke, the British government's Secretary for International Aid, Andrew Mitchell, World Bank and Asian Development Bank vice-presidents and IMF and UN repre-

BEIJING: China may deploy a mixture of policies to fend off hot money, an official paper cited a central bank executive as saying at the weekend, amid worries that the United States' policies could create unwelcome flows of capital towards China.

Ma Delun, a deputy governor of central bank the People's Bank of China (PBOC) said such a policy kit would include reserve requirement adjustment, management of foreign exchange positions, and open market operations, expanding on an earlier remark by the PBOC governor.

"The 'pool' mentioned by Governor Zhou Xiaochuan does not refer to a specific market, but an array of policies," Ma was quoted as say-

ing by the Shanghai Securities News on Saturday.

Earlier this month, Zhou said China's existing foreign exchange controls were able to prevent irregular capital inflows, and proposed establishing a "pool" that could help lock and release capital as required.

With the United States weakening the dollar with a second round of quantitative easing, worries are mounting that much of that cash may end up overseas, putting pressure on countries including China to find ways of fending off unwanted capital inflows.

Ma also said the inflation rate that reached a 25-month high in October was within expectations, and the central bank would improve the focus of its monetary policy

in future to keep inflation in check.

The PBOC launched fresh tightening measures this week to fight excessive liquidity, including a rise in the reserve ratio for all banks on top of a punitive hike for selected banks.

Ma said the increase in required reserves was intended to reduce money supply to the real economy.

China must continue its exchange rate reform efforts, and allow businesses to adapt by conducting reform gradually, he added.

The yuan's steady ascent picked up steam recently as China stepped up monetary tightening to fight capital inflows. On Friday, spot yuan versus the dollar was up around 2.85 per cent since its depegging in midJune.-Reuters

AlQaeda can be contained, not defeated: Gen Richards LONDON: The West is fighting a war against al Qaeda in which its forces can contain Islamic militancy but cannot achieve a conventional military victory, Britain's most senior officer was quoted as saying on Sunday.

Chief of the Defence Staff General David Richards underlined Britain's aim to end its combat role in Afghanistan by 2014-15 but did not estimate how much longer after that coalition troops would need to support Afghan security forces.

"First of all, you have to ask: 'Do we need to defeat it (Islamist militancy) in the sense of a clear cut victory?'" Richards told the Sunday Telegraph. "I would argue that it is unnecessary and would never be

achieved."

"But can we contain it to the point that our lives and our children's lives are led securely? I think we can."

His comments are the latest from Western military leaders and politicians who have been paving the way for coalition forces to exit Afghanistan over the coming years, even though the Taliban remains a significant threat to security there.

US President Barack Obama and Prime Minister David Cameron hope to start bringing troops home next year.

The general, who became head of Britain's armed forces last month, said the region should be stabilised before any withdrawal is completed.

"We are equally clear that

we have got to support the operation thereafter to make sure that our legacy is an enduring one," he said.

Separately, Richards said he would back Prince Harry if the young royal wanted to return to the front line in Afghanistan but said Prince William should probably avoid the conflict.

"I would advise ... that right now he shouldn't. He's not trained to go out there so it's actually a slightly academic issue," he said.

"However, with Prince Harry, who spent 10 weeks in Helmand in 2008 and is known to be keen to return to the front line, it is a different matter."

British soldiers have been fighting in Afghanistan since 2001 as part of a US-led force.-Reuters

Prince William lays wreath in Afghanistan LONDON: Prince William laid a wreath in Afghanistan to honour Britain's war dead as part of Sunday's annual remembrance ceremonies, his office said.

William, second in line to the throne who serves in Britain's air force flying sea rescue helicopters, visited British troops based at Camp Bastion in Helmand

province with Defence Secretary Liam Fox. "Remembrance Sunday is a time when the entire country stops to recognise the sacrifices made by the armed forces on our behalf," Fox said.

The occasion, held on the second Sunday in November, has been marked with two minutes' silence

and marches since the end of World War One and brings together military veterans of all ages. There have been 343 British military deaths resulting from the war in Afghanistan since Britain joined a US-led invasion in 2001.

The visit was William's second to Afghanistan following a trip in April 2008.-Reuters

sentatives also will address the forum today. Foreign Minister Shah Mehmood Qureshi will preside over today's session.

No #8

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people was equal to peanuts adding, the government is trying to generate funds for assistance of flood stricken people. He said that PPP government has been able to hoist Pakistan flag on Swat and fulfilled dream of its slain leader Mohtarma Benazir Bhutto who announced to do so during her election campaign. Rejecting any danger to democracy, he said that President, Asif Ali Zardari and Prime Minister, Yousaf Raza Gilani are striving very hard for the uplift of the masses.

Furthermore, federal law minister, Babar Awan has said that there were only 1.8 million taxpayers out of total of 180 million of population. A private TV channel has informed that, while talking to media Babar Awan refuted any further (new) taxes, as only rich and influential would be taxed.

He reminded that no country could progress without taxation, and stressed on adding more rich and influential in tax net.-Agencies

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Sabaghian also represented Hossein Ronaghi-Maleki, a blogger, who is serving a 15-year jail term and was detained after the presidential election, which the opposition says was rigged to secure President Mahmoud Ahmadinejad's re-election. The authorities say it was the fairest vote in three decades. The Kaleme website said Maryam Kian-Ersi defended "a woman who had been sentenced to stoning to death for adultery a few years ago." -Reuters

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be made through mutual consensus and if there are any differences by even a single member, the matter is referred to the Parliament for decision.

He said decisions were taken on both reformed GST and flood tax at the forum of CCI and the issues would not be settled by backing out from agreed decision and criticising the prime minister.

The minister said that instead of denying his earlier decisions, had Shahbaz Sharif said that he agreed in the CCI meeting, but now he wants to review it, there was a possibility that people might have listened to him. He said such refusals were not a solution to the issues and one should courageously stand by one's own decisions.-APP

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"You have to stand up for what is right," Suu Kyi added, urging supporters to be more politically assertive in the former British colony formerly known as Burma, where the army controls nearly every facet of life. "A one woman show is not a democracy."

Later, speaking with reporters, she declined to comment directly on whether she would urge the West to roll back sanctions that many say hurt ordinary people by allowing the junta to monopolize the country's resource-rich economy. "If people really want sanctions to be lifted, I will consider this," she said. "This is the time Burma needs help. We ask everyone to help us."

Foreign Minister Shah Mehmood Qureshi has welcomed the release of Aung San Suu Kyi, calling it a positive step. In a statement, he said, "we are confident it will contribute towards Myanmar's national reconciliation process." He said Pakistan enjoys traditionally warm and friendly relations with Myanmar. -Agencies

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World may become terror victim If WoT failed

Malik urges $50bn foreign loan write-off Waived debt to be used in war against terror Special Correspondent/ Agencies ISLAMABAD: Pakistan Sunday urged the international community to waive its debt of over $50 billion to ease the financial burden on the country enabling it to battle terrorism, militancy and other challenges.

The country has paid a "heavy price" after becoming part of the war on terror in 2001, Interior Minister Rehman Malik said at the inauguration of the two-day Pakistan Development Forum here.

At the PDF moot, Pakistan government stressed upon the international community to assist the country in different sectors for a long-lasting development after its worst ever floods, which have left more than 1,800 people dead and over 20 million homeless across the country.

Chief ministers of all the

provinces, KhyberPakhtunkhwa governor and Azad Jammu and Kashmir prime minister presented before the audience, which included foreign envoys and representatives of financial institutions, details of their requirements after the devastation caused by the floods.

Delegations from 30 countries and 264 representatives from donor countries, five major lending and aid institutions participated in the meeting.

Malik assured that "the waived-foreign-debt will be utilised in the fight against terrorism," he said adding that "We need trade instead of aid."

The minister said "terrorism in Pakistan is being exported from Afghanistan as around 50,000 people crossover daily to the Pakistani side from the porous borders with Afghanistan. Pakistan has been

demanding financial and trade assistance from the world after suffering from heavy losses of life and infrastructure in rampant terrorism activities.

Malik warned the global community that if it failed to assist Pakistan in its war against terrorism, the entire world could become its victim.

Briefing the Pakistan Development Forum (PDF), the interior minister informed that Pakistan had sustained losses worth U$.140 billion in its war against terror, and said that world should realize that this war was being fought to protect it from the ravages of terrorism, and global peace.

He stressed on the global community to address its ethical and moral obligations by assisting Pakistan. "Those who cannot fulfill there obligations, had no right to insist on 'do more' either ", he declared.Agencies

CM Punjab agreed on RGST during CCI: Kaira

Shahbaz asked not to retreat on decisions ISLAMABAD: Federal Minister for Information and Broadcasting Qamar Zaman Kaira on Sunday rejected the press statement of Punjab Chief Minister Shahbaz Sharif in which he expressed reservations over Reformed GST and flood tax, saying his party had agreed with the Prime Minister over both the issues in the meeting of Council of Common Interests (CCI).

Talking to APP, Qamar Zaman Kaira said they have deep respect for Shahbaz Sharif but he should not back out or deviate from his own decisions.

The minister said that chief ministers of all the four provinces participated in the meeting of Council of Common Interests (CCI) and they all evolved consensus on reformed GST. Later the meeting also discussed flood tax and all the

provinces were ready to give their nod to it too, he said.

Kaira said Secretary Finance when briefed the meeting of CCI in detail on reformed GST and other issues, the Prime Minister directed the Minister of Finance to consult with Sindh to remove its grievances.

Kaira said Shahbaz Sharif knows very well that CCI is a forum where decisions can only See # 10 Page 11

Pakistan welcomes release of Aung San Suu Kyi

Suu Kyi speaks of rule of law, human rights YANGON: Democracy leader Aung San Suu Kyi reached out to Myanmar's splintered opposition forces on Sunday as she addressed thousands of exuberant supporters following her release from years of house arrest.

"I want to hear the voice of the people, after that we will decide what we want to do," she told a sea of followers outside her party headquarters. "I want to work with all democratic forces, "I believe in

human rights and I believe in the rule of law," she added.

San Suu Kyi called for freedom of speech in army-ruled Myanmar, urged thousands of supporters to stand up for their rights, and indicated she may urge the West to end sanctions.

Suu Kyi's first major speech since being freed from seven years of house arrest a day earlier left little doubt she would resume an influential political role in one of the world's most isolated and oppressive countries.

"The basis of democratic freedom is freedom of speech," she said to roaring cheers from thousands of supporters crammed into a cordoned-off street in front of her party's headquarters. "Even if you are not political, politics will come to you."

Asked by a reporter what message she had for supreme leader Senior General Than Shwe, she replied, "Let's meet and talk."

See # 11 Page 11

LAHORE: Prime Minister Syed Yousuf Raza Gilani in a meeting with Federal Minister for Commerce Makhdoom Amin Fahim.-APP

Iran cops 5 lawyers on security offences TEHRAN: Five lawyers have been arrested in Iran for security-related offences, a local news agency said on Sunday, latest in a series of arrests of human rights' activists since last year's disputed presidential election.

Tehran general prosecutor Abbas Jafari Dolatabadi said three of the lawyers were arrested when they returned from a trip to Turkey, the semiofficial Fars news agency reported.

"Two other lawyers related to the three were also detained in Iran," the prosecutor told Fars.

"They have been detained for committing security-related offences and violating the Islamic Republic's moral standards outside Iran," he said, without elaborating on the charges.

Sara Sabaghian, Maryam Kian-Ersi and Maryam Karbasi were arrested at Tehran's International Imam Khomeini Airport on Saturday, the Sharq newspaper reported.

Opposition leader Mirhossein Mousavi's website said the "whereabouts of the three women lawyers are unknown."

"The three were arrested by security forces Sabaghian is a member of a committee for defending rights of women and children. She was once detained on July 8," the opposition website Kaleme reported, without giving a source.

See # 9 Page 11

Shakai blast kills one, hurts 8, WANA: A man was killed and eight other people were injured as a result of a suicide blast in South Waziristan Agency area of Shakai, media reported Sunday.

According to local sources, the blast was attempted to target chief of local peace committee Tehsil Khan Wazir; however, guards opened fire at the bomber on receiving timely tip-off.

The blast killed the suicide bomber and a guard; also, 8 other guards were injured, who were shifted to Wana hospital. -Agencies

Govt needs to expands tax net: Awan

Punjab duality on RGST irks Federation RAWALPINDI: While criticising the Punjab government for opposing Reformed General Sales Tax (RGST), Federal Minister for Law and Parliamentary Affairs, Dr Babar Awan said Sunday that it had supported the tax reforms in the Council of Common Interest (CCI) meeting held to evolve a consensus of all the provinces.

"Punjab government has adopted dual policy as it supported the proposed tax reforms in the Council of Common Interest meeting but in the media and assembly, it is showing discontentment," he said while talking to journalists here at Benazir Bhutto memorial at Liaquat Bagh while sending relief goods to the flood affected people of Multan district.

13 truck-loads of relief goods worth Rs.5 million were sent

by Media Coordinator of the Prime Minister Mian Khurram Rasool.

The Minister said the persons who are enjoying luxury life will have to pay taxes, adding, "We are not imposing taxes on the poor."

He informed that out of 180 million people, only 1.8 million are paying taxes in which 1.25 million are salaried class.

Babar Awan pointed out that the Punjab government is spending resources of the entire province in specific areas especially in Lahore while some important cities are being neglected because of its biased policies.

He said even funds for the Watan cards are being provided by the Federal Government.

He said that Pakistan Peoples Party is committed to rehabilitation of all the flood affected people saying, it will continue its endeavors till the last flood affected person is rehabilitated.

Babar Awan said that foreign assistance for flood affected See # 8 Page 11

Talk with Sharif of no use: Afgan CHAKWAL: Senior Vice President of All Pakistan Muslim League (APML) and former Federal Minister Dr Sher Afgan has said that the meeting between Zafarullah Khan Jamali and Nawaz Sharif was a fruitless exercise.

Talking to the media after attending Handaan Conference at village Saggar Sharif here on Sunday, he said both the leagues would not merge with each other as Nawaz Sharif has his own agenda wants to reach Prime Minister's House in 2011 at any cost.

Dr. Sher Afghan was of the view that the terrorism was supervised by Afghanistan and India and it was sponsored by anti-Islamic forces, therefore Pakistan must take some serious efforts to overcome this menace.

He praised the efforts of

armed forces that pushed terrorists back into the wall and there was no role of present government.

Dr Sher Afghan said that there was a vacuum of leadership in the country as the present federal and provincial governments have failed to deliver more than 400% as compared to the era of Pervez Musharraf.

He said people are openly saying that the period of President Musharraf was much better than the present one.

He said that life and property of people was not protected and there was uncertainty among the public.

Earlier, the Handaan conference was presided over by Pir Mehmood ul Hassab Khaki and addressed by leader of Sunni Itehad, Allama Haider Ali, Mubarik Ali Hamdani, Haider Ali Hamdani. -NNI

Security of Iranian Envoy upped ISLAMABAD: Pakistan has enhanced the security of Iranian Ambassador to Pakistan Mashallah Shakiri after receiving threats from Taliban, private TV channel reported.

The report quoting the sources of Interior Ministry said that the Iranian Ambassador to Pakistan, Mashallah Shakri received threats from banned Tehreek-eTaliban Pakistan (TTP) and he informed the government through diplomatic sources.

After the threats, the government has tightened the security of Iranian envoy.

The security agencies have started the operation to investigate the people, who threatened the ambassador.

On the other hand, Shakri has limited the activities. The security of other envoys also has been beefed up. -APP

Woes take time to heal: CM B'stan ISLAMABAD: Chief Minister, Balochistan, Nawab Aslam Raisani has said that 63-year grievances of Balochistan cannot be redressed in one or two years.

Addressing the representatives of donor countries, on the occasion of Pakistan Development Fund, he informed that mining accord of Balochistan province were being reviewed, and announced that the Province carried vast reservoirs of oil and gas.

He assured that investors would be provided all necessary facilities and incentives for Gwadar-based industrial ventures, which offered lucrative economic gains; while local Baloch would populate the Port City, themselves.

Replying to a question, he said that the statement of interior minister Rehman Malik regarding results and level of dialogue with Bramhdagh Bugti and other Baloch Sardars should better be clarified from minister himself. -Agencies

Al Qaeda denies plot to target Muslim pilgrims

Millions march into Mina as Hajj begins MAKKAH: The hajj begins in Saudi Arabia. Hundreds of thousands of people set out on a journey from Mecca to Mount Arafat through the valleys of Mina and Muzdalifa. It is expected that this year's hajj will be attended by some 3.5 million people.

Recently a special light-rail metro was opened, connecting Mecca with the valleys. The following year, when construction is completed, every six hours the light-rail metro will carry up to half a million people.

Hajj is one of the five compulsory duties of a Muslim, guaranteeing him pardon for all sins and the attainment of eternal bliss in the life hereafter.

On the other hand, Yemen-based al Qaeda in the Arabian Peninsula denied on Sunday it would stage any action to coincide with the Hajj pilgrimage to Saudi Arabia after a

Saudi minister said such an operation could not be ruled out.

"We are against any crimes against pilgrims, Hajj is a pillar of Islam and we are most eager not to spill the blood of Muslims, wherever they may be. Mecca is more sacred than any other place," AQAP said in a statement posted on an Islamist website often used by militants.

The statement followed remarks last week by the Saudi interior minister in which he suggested al Qaeda may attack the around two million Muslims who are due to start their pilgrimage in Saudi Arabia.

Asked whether al Qaeda might stage an attack on the Hajj or use the event to try and get fighters from Yemen into the kingdom, Prince Nayef bin Abdulaziz said: "We cannot rule out any operation but we are ready to foil it. -Agencies

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