The Financial Daily-Epaper-21-02-2011

International Karachi, Monday, February 21, 2011, Rabi-ul-Awwal 17, Price Rs12 Pages 12

Rahat returns after paying Rs1.5mn fine See on Page 12 Economic Indicators Forex Reserves (12-Feb-11) Inflation CPI% (Jul 10-Jan 11) Exports (Jul 10-Jan 11) Imports (Jul 10-Jan 11) Trade Balance (Jul 10-Jan 11) Current A/C (Jul 10- Jan 11) Remittances (Jul 10 - Jan 11) Foreign Invest (Jul 10-Jan 11) Revenue (Jul 10 Jan 11) Foreign Debt (Dec 10) Domestic Debt (Dec 10) Repatriated Profit (Jul- Dec 10) LSM Growth (Nov 10)

GDP Growth FY10E Per Capita Income FY10 Population

Special Correspondent/ Agencies

199.77 -0.98 3.83 2972

NCCPL (U.S $ in million)

2.05 -0.51 -0.26 -0.42 0.19 -0.99 -0.06

Global Indices Index

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Change

KSE 100

12,041.15

Nikkei 225

10,842.80

6.16

Hang Seng

23,595.24

293.40

20.62

Sensex 30

18,211.52

295.30

SSE COMP.

2,899.79

27.17

FTSE 100

6,082.99

4.39

Dow Jones

12,391.25

73.11

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

$.Price PKR/Shares 2.60 110.89 15.00 127.95 2.00 42.65 1.70 36.25 11.03 37.62

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

09-Feb-2011 09-Feb-2011 09-Feb-2011 29-Nov-2010 19-Feb-2011 19-Feb-2011 19-Feb-2011 19-Feb-2011 19-Feb-2011 19-Feb-2011 19-Feb-2011 19-Feb-2011 19-Feb-2011 19-Feb-2011 19-Feb-2011

13.53% 13.69% 13.86% 14.00% 13.19% 13.61% 13.76% 14.14% 14.25% 14.17% 14.21% 14.19% 14.53% 14.75% 14.96%

Commodities Crude Oil (brent)$/bbl Crude Oil (WTI)$/bbl Cotton $/lb Gold $/ozs Silver $/ozs Malaysian Palm $ GOLD (NCEL) PKR KHI Cotton 40Kg PKR

102.52 86.20 194.93 1,388.60 32.30 1,219 38,188 12,646

Open Mkt Currency Rates Symbols

Buy (Rs)

Australian $ 86.10 Canadian $ 86.45 Danish Krone 15.40 Euro 115.80 Hong Kong $ 10.80 Japanese Yen 1.012 Saudi Riyal 22.78 Singapore $ 66.65 Swedish Korona 13.20 Swiss Franc 88.10 U.A.E Dirham 23.27 UK Pound 138.00 US $ 85.65

Sell (Rs)

87.10 87.45 15.80 117.30 11.20 1.038 23.00 67.65 13.60 89.10 23.55 139.50 85.95

Inter-Bank Currency Rates Symbols

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

Buying TT Clean

Selling TT & OD

85.31 85.98 15.39 114.72 10.90 1.025 22.64 66.33 13.10 87.63 23.11 136.33 85.30

85.51 86.19 15.42 114.99 10.92 1.027 22.69 66.48 13.13 87.84 23.17 136.65 85.49

Weather Forecast CITIES

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18°C 27°C 21°C 21°C 14°C 19°C

MIN

6°C 15°C 9°C 8°C 1°C 6°C

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See on Page 12

Pak appreciates US principled stance on noninterference

SCRA(U.S $ in million)

FIPI (18-Feb-2011) Local Companies (18-Feb-2011) Banks / DFI (18-Feb-2011) Mutual Funds (18-Feb-2011) NBFC (18-Feb-2011) Local Investors (18-Feb-2011) Other Organization (18-Feb-2011)

See on Page 12

Alive to security needs, says Pak

Portfolio Investment

Total Portfolio Invest (12-Feb-2011)

See on Page 12

Islamabad values its relations with US: FO

$17.44bn 14.55% $13.23bn $22.55bn $(9.32)bn $(81)mn $6.12bn $1.18bn Rs 765bn $58.39bn Rs 5497.4bn $323.6mn -4.69% 4.10% $1,051 175.22mn

Yearly(Jul, 2010 up to 18-Feb-2011) Monthly(Feb, 2010 up to-18-Feb-2011) Daily (18-Feb-2011)

Drone strikes stopped after Davis detention Talked enough on Kashmir, says Fazl Libya unrest death toll tops 200

RABAT: Thousands of protesters gathered in the Rabat to demand that King give up some of his powers and clamp down on govt corruption. -Reuters

7M trade gap reaches $718mn

Services deficit contracts 60pc Aamir Abidi KARACHI: Pakistan services trade deficit squeezed by 59.6 per cent in first seven month of fiscal year 2011 over the same period of previous year.

Trade deficit in services reached $718 million in JulyJanuary 2010-11 against $1.77 billion in the corresponding period of previous fiscal, according to State Bank of Pakistan (SBP).

The main reasons of decline in services deficit were higher service export proceeds received by the government.

Services export increase 55.7 per cent to $3.42 billion in 7MFY11 period over $2.19 billion in the identical period same period.

The imports of services hiked

4.1 per cent to $4.14 billion in the said period against $3.97 billion in the same period of previous year.

During the period, country has generated through services export worth of $1.73 billion on account of government services, $786 million from transportation services, $188 million from travel, 145 million from communication services and $123 million from Computer & information services.

On the flip side, Pakistanis paid $2.17 billion for transportation, 620 million for other business services, $564 million for travel, $107 million for communication services, $89 million for insurance services and $79 million for computer & information services.

Industry size reaches Rs236bn

Mutual Funds up 5.3pc during Jan Staff Reporter KARACHI: Mutual Funds industry -- started on a promising note in 2011 -- surged 5.31 per cent MoM to Rs236 billion in January 2011 compared with Rs224 billion in December 2010.

Open-end funds which contribute almost 88 per cent of total mutual fund industry size reached Rs208 billion till January 2011 compared with Rs195 billion in December 2010, increased by 6.79 per cent MoM, while closed-end fund industry size reached Rs27.80 billion.

In term of absolute term, the total mutual fund industry rose

by Rs11.90 billion MoM. Out of Rs11.90 billion, mostly has been raised by Money Market Funds i.e. having short-

er duration as compared to Income Fund having long-term duration.

Major funds raised by Nafa Government Securities Liquid Fund, MCB Cash Management Optimizer Fund, ABL Cash Fund & UBL Liquidity Plus Fund whose asset size increased by Rs2939 & Rs2562, Rs1686 & Rs862 million to Rs10,422, Rs10,263, Rs6,816 & Rs13,081 million respectively.

With these increase, Money Market category now stands at Rs68.99 billion at the end of January 2011 compared with Rs57.09 billion in December 2010.

On capital market side, the benchmark KSE 100-Index surged 2.80 per cent MoM, open-end equity funds asset See # 12 Page 11

Inflows into KSE hit $3.51m last wk Ghulam Raza Rajani KARACHI: Local bourses continued to tempt foreign investors in the outgoing week as overseas investors have made a net investment of $3.51 million, as per the National Clearing Company of Pakistan Limited (NCCPL) data.

During the week, KSE 100Index went up 97.81 points at 12,041.15-level, while investors preferred to remain sideline or on selling side due to concerns regarding Pak-US relations on Raymond Davis

issue.

This was evident with average volume which shrank 22.2 per cent to 74.21 million shares against 95.44 million shares traded week before last.

Foreign investors deciding for buying fresh position as they bought shares worth $8.92 million and sold $5.41 million, resulting in net buying of $3.51 million during the last week.

Furthermore, banks, local individuals, NBFC and other organisation remained on the buying side with shares worth See # 13 Page 11

Gilani on mission to woo PML-N ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani Sunday reached Lahore after President Asif Ali Zardari mandated him to keep holding PML-N in the loop and seek more time for politicking.

According to sources in the Presidency, the President and Prime Minister met here in the backdrop of the statements emanating from PML-N leadership with a warning tone and tanner of abandoning the bipartisan efforts to address national issues starting with Mian Nawaz Sharif's ten-point agenda.

Threats from PML-N to expel the PPP ministers from Punjab government and discontinue the committee-level interaction on 10 points forced the President to mandate the Prime Minister to rush to the major Opposition party's leadership in Lahore.

The sources told Online that the President asked the Prime Minister to convey it to PML-N leader Nawaz Sharif that the country was at a critical juncture of time and all parliamentary forces need to pool up their efforts to steer it out of difficulties.

The President also instructed Premier Gilani to invite PMLN leadership ruling the largest province of the country to be on the same page with the government over the issue of American national Raymond See # 11 Page 11

30 militants killed in Orakzai H A N G U / P E S H AWA R : Security forces on Sunday killed 30 militants and destroyed their two hideouts in Lower Orakzai and Mohmand Agencies.

According to media reports, Security forces conducted operation against militants and targeted their hideouts in different areas of Lower Orakzai Agency.

At least eight militants were killed. Two hideouts were also destroyed in the operation.

Forces killed up to 15 militants after dozens of insurgents attacked a security checkpoint in Mohmand Agency.

According to the report, a group of militants launched an attack on a security forces' check post in the Bazai area of Mohmand Agency.

In retaliation, the Security forces launched counter attack on the militants, killing at least 20 of them and injuring a dozen others.

On the other hand, security See # 10 Page 11

ISLAMABAD: Pakistan is a prudent nuclear nation and responsible enough to understand its commitments to regional security needs, and wanted good relations with global community including India, at all times.

This was the reaction of newly appointed Foreign Office Spokesperson Tehmina Janjua while responding to the recent statement of Indian Security Advisor that had raised concerns over Pakistan's nuclear assets.

National Security Advisor Shivshankar Menon on the other day had raised questions on the safety of nuclear weapons and material in Pakistan and had said that there was an increasing danger of terrorism spreading in the region from countries like Pakistan and

Afghanistan.

Commenting on the above statement, the Foreign Office Spokesperson said that Pakistan "is a responsible nuclear weapon state with impeccable credentials and custodial controls of its strategic assets."

Pakistan has made a sincere gesture in reaching out to India for promoting stability, peace and development in South Asia.

"We are mindful of our responsibilities in the context of global peace and security and in particular in our larger Asian neighborhood," she added.

"It is important that all regional states live up to their responsibilities, on the basis of recognized norms and values to promoting an Asian Security Architecture with an enlightened approach. This requires carefully cultivating a new mindset," she stated in a written statement in response to Online's questions.

7M bill reaches $9.61bn

Food, oil import bill surges 29pc Cellular sets import up 86pc to $285 million Staff Reporter KARACHI: Country's food and oil import bill hiked by 29.1 per cent to $9.61 billion during the seven month of current fiscal year compared to $7.44 billion in the corresponding period of the previous year, the official data released by the Federal Bureau of Statistics.

According to TFD analyst, major increase in food and oil import has been caused by higher volume of sugar, soyabean palm oil and curde oil.

According to sector-wise trade data, oil import bill surged almost 14.5 per cent to

$6.45 billion in 7MFY11 against $5.63 billion in the corresponding period last year.

The major increase was witnessed in crude oil import which surged 21.9 per cent to $2.45 billion versus $2.01 billion in 7MFY10.

Similarly, imports of manufactured petroleum product rose 10.5 per cent to $3.99 billion against $3.62 billion witnessed in 7MFY10 mainly due to higher petroleum product prices.

Likewise, food group import registered a hike of 74.3 per cent to $3.15 billion in 7MFY11 in which sugar import See # 7 Page 11

0.225mn tonne import decided

Urea import to cut rate on cards ISLAMABAD: The Ministry of Industries and Production said that the government has decided to import a total 225,000 tonnes of urea, aimed at cutting down the urea prices in the country.

According to the Ministry, urea price has increased from Rs841 per 50 kg bag in

October 2010 to Rs1060 per 50 kg bag in January 2011 by manufacturers claiming it to be a consequence of the gas supply curtailment and loss in production.

However, owners of local fertiliser industry have also made commitment that See # 9 Page 11

Regarding US Secretary of State Hillary Clinton's remarks at the launch of the Asia Society's Series of Richard Holbrooke Memorial Addresses on 18 February, the Spokesperson stated "it is Pakistan's considered view that stability, peace and development in the South Asian region is not only important for Pakistan but has global ramifications."

She reiterated that Pakistan has reached out to both Afghanistan and India to promote an environment conducive to stability and development. "It is imperative that the international community support this endeavor," she emphasised.

According to the spokesperson, Pakistan values its relations with the US and is cognizant of the need for greater strategic coherence especially when a large number of See # 6 Page 11

PPP-N row risks IMF talks ISLAMABAD: International Monetary Fund is closely watching developments between the ruling PPP and PML-N as stalled loan program's resumption depends on success of bipartisan joint venture of handling fragile economy.

Well-placed official sources told Online on Sunday that the IMF was closely watching the two parties' venture of addressing the critical national issues with the economy on top of them.

Earlier the IMF had given an indication that it would send a review mission to Dubai by the end of this month in case the bipartisan committees succeed in proceeding further especially on economic issues.

According to the sources, the IMF had practically stalled the programme, even after giving a nine-month extension to it, when its high powered delegation early this month had to go back as highly disappointed.

Underlining the government's constant inability to fulfill its commitments made under the SBA loan programme, the IMF delegation under Director Masood Ahmed had decline to send an economy review mission.

However, the sources told Online that the IMF senior officials were a bit encouraged after meeting Senator Ishaq Dar who See # 8 Page 11

TODAY’S MATCH AUSTRALIA VS ZIMBABWE AHMEDABAD, INDIA See details on page 9

New Zealand crush Kenya The Black Caps beat Kenya by 10 wickets chasing a measly target of 69 runs during their Group A match today in Chennai. New Zealand's Hamish Bennett grabbed four wickets in his World Cup debut to help skittle out

Zimbabwe in 24 overs. Two days before he turns 24, Bennett claimed 4-16 from his tidy five overs as Kenya, having opted to bat first, lost their top half even before reaching the 50run mark and were shot out in 23.5 overs.

Sri Lanka shoot down Canada Sri Lanka coasted to an enormous 210-run victory in their opening World Cup game against Canada in front of home fans in Hambantota.

The hosts won the toss and opted to bat on a cloudy afternoon. Canada's determined start was

picked apart piece-by-piece by an outstanding partnership of 179 between Kumar Sangakkara and Mahela Jaywardene, and the minnows were left to chase Sri Lanka's score of 332 for seven wickets from their 50 overs.

2

Monday, February 21, 2011

PM lays foundation stone of AIOU regional campus

Youth urged to make education a priority

QUETTA: DIG Quetta Hamid Shakeel addresses a press conference at Airport Police Station.-Online

PIA resumes flights to Colombo KARACHI: The inaugural PIA flight from Karachi, which resumed after three years, arrived here at the Bandaranaike International Airport Saturday night, aimed at promoting bilateral ties.

The flight was received by Pakistani High Commissioner to Sri Lanka, Seema Elahi Baloch.

Sri Lanka and Pakistan have close friendly ties and the initiation of the PIA flights from Karachi will help further enhance these ties," she said and added, "The flights will also increase the people-to-people contact besides increasing the economic and commercial ties between the two countries."

Seema pointed out that the bilateral trade between the two countries is to the tune of 300 million dollars and there is scope of further enhancing it.

She said that there exists free trade agreement between Pakistan and Sri Lanka besides the bilateral trade treaty as well as the avoidance of double taxation treaty.

She said Pakistan can export more fruits, vegetable and cement etc to Sri Lanka and that there is also scope for the small and medium enterprises.

Seema said that the private sector may also play its role towards enhancing the trade and commercial ties.

The Karachi-Colombo flights will be available on daily basis to the passengers, she said. Each week PIA will operate three flights, while Air Lanka will operate four flights, she added.

This will also help enhance tourism as many of the Sri Lankans also wish to visit Taxila and other places in Pakistan.

Earlier, the traditional candle lighting welcome ceremony was performed at the Colombo Airport.-APP

'Govt should not rely heavily on US'

Pak needs more Chinese inflows: Economy Watch ISLAMABAD: Pakistan Economy Watch (PEW) Sunday said Pakistan and China are natural allies enjoying exemplary relations beyond a shadow of doubt.

Issue of uneven growth in World's No 2 economy with GDP reaching $5.7 trillion should be taken seriously and resolved immediately, it said.

Dr Murtaza Mughal, President PEW, said that in future, it may be not easy for China to maintain rate of progress without addressing the problem of inequality.

Visionary Chinese leadership should revisit growth-promoting reforms before it pose any risk to poverty reduction

efforts at home and potential implications for the rest of the world, he said.

He added that China needed to pour more money in Xinjiang province to bring it at par with developed areas that will minimise chances of political unrest in future.

"It will also have a very positive economic impact on countries bordering Xinjiang including Pakistan. There will be dramatic growth in relations", said Dr Murtaza Mughal.

He said government need to enhance efforts to implement decisions announced during historic visit of Chinese Premier to Pakistan.

Pakistan deserves

enhanced share in China's eye-popping pace of growth and its foreign direct investment standing at $400 billion, he said.

Our economically under-developed country is looking forward for more Chinese-funded infrastructure projects with emphasis on energy as stable Pakistan is in the interest of Beijing, said Dr Mughal.

Pakistan should try not to remain heavily dependent on US aid that results in additional pressure.

Chinese investments that are always without strings but play a secondary role should be encouraged to strike a balance. NNI

ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani will lay foundation stone of Regional Campus of the Allama Iqbal Open University (AIOU) at Bahawalpur on Monday (today).

A high-level meeting headed by Prof Dr Nazir Ahmed Sangi, Vice-Chancellor of the University held through Video Conference to review the arrangements for the laying foundation stone of Regional Campus of the University at Bahawalpur.

Deans, Regional Directors and Officers of the University attended the meeting through Video Conference simultaneously from Lahore, Dera Ghazi Khan and Islamabad.

Dr Sangi, Vice-Chancellor is now-a-days on official visit to

SBP initiates study on remittal system ISLAMABAD: State Bank of Pakistan (SBP) has established a Task Force on Home Remittances with a view to analyze remittance system in Pakistan in detail, collect best practices of other labor-sending countries.

An official of SBP told APP that the Task force will identify barriers to the flow of remittances to the country and recommend measures to enhance the flow of remittances through formal channels.

He said that SBP has developed continuous interaction with banks and exchanges companies.

He said that special "Home Remittance Cells" have been established in all banks with requisite IT support.

He said that SBP also established a fina cial incentive scheme for overseas entities whereby they will be supported in their marketing efforts.

He said that the scheme is performance-based and rests on the basic premise of offering financial incentives against mobilization of additional remittances such incentives shall stat from bring at least 100 million US $ from particular jurisdiction in one year.

"A performance based scheme has been launched to encourage overseas entities to enhance marketing efforts," he said. -APP

MONDAY Time Programmes 7:00 News 8:00 News 9:05 Best of Subah Savere Maya Kay Sath 11:10 Tafteesh (Rpt) 12:00 News 13:10 Newsbeat (Rpt) 14:10 Awam Ki Awaz (Rpt) 15:00 News 16:10 Faisla Aap Ka (Rpt) 17:30 Samaa Metro 18:00 News 18:30 Aap Ki Baat 19:00 News 19:05 Mutasareen 19:30 Taxi News 20:05 Tafteesh 21:00 News 22:03 Faisla Aap Ka 23:00 News 23:03 Awam Ki Awaz

Thar coal power project in next stage

shortly.

Official sources told APP here Sunday that the project, supervised by renowned nuclear scientist Dr Samar Mubarakmand was at its advanced stage and would complete in near future.

The project approved by the concerned quarters was jointly launched

by Planning Commission of Pakistan, Pakistan Atomic Energy Commission and National Engineering and Scientific Commission last year to produce electricity by utilising Thar coal reserves. Under the project, the coal would not be mined rather plants would be installed on deposits to produce gas in a most sophisticated manner.

The Thar coal reserves worth $25

The sources said the power generated from coal gasification would be the cheapest than other sources like furnace oil, natural gas and hydel.

They said just 2 per cent usage of Thar coal could produce 20,000 Megawatts electricity. They said inexpensive production of electricity would bring an industrial revolution in the country, putting it on consistent path to progress and prosperity.

According to a report, a single reserve in Thar has about 850 trillion cubic feet coal (TCF), which is far better than approximately 375 Billion Barrels of Saudi of Saudi Arabia and Iran if put together.

"The coal deposits in Thar can change fate of the country if utilised in a proper way. It can save oil

The sources said it was an indigenous project of the country and no any formal agreement has so far been made for foreign assistance in power generation through Thar coal reserves. However, they said China Kingho Group expressed interest in Thar Coal project.

Pakistan is the second country in the world having huge coal reserves which should be used in a fair and transparent manner for the welfare and betterment of mankind and to overcome prevalent energy crisis by producing cheaper electricity.

Russia, Central Asian Republics, Europe, UK, Canada, Australia, China and South Africa are getting thousands megawatts power from underground coal gasification. -APP

standard life of the residents of backward areas with the dwellers in big cities through providing equal educational opportunities for the purpose opportunities of required training and skills for getting job in fertilizer industry and hotel industry like industries would be offered by AIOU. Dr Sangi also instructed the youth to give attention towards future and try to make it better by getting admission in the ongoing admissions from Matric to PhD level for the semester Spring, 2011 of the University the last date of which without late fee is 25th February, 2011.

He also announced that result awaited students of AIOU can also submit their admission forms in the current admissions. -Online

'ERRA earns donors turst’

Erra ready to share expertise with academia ISLAMABAD: Chief of Staff Earthquake Rehabilitation and Reconstruction Authority (ERRA), Brig Masood Ahmed said that ERRA has proved to be a reliable organisation which has earned the trust of donors and international partners.

He said that donors pledged $14 billion for reconstruction but only $6 million were materialised in Afghanistan but, he added, "in case of ERRA more money is pledged, which shows the trust of donors and international partners."

Talking to APP here on Sunday he said that ERRA now rich with five years of experience to deal with post earthquake 2005, reconstruction and rehabilitation challenges.

He said that ERRA has introduced a "Linkages Programme" under which it is collaborating with leading research and academic institutions of the country.

Brig Masood said that the initiative of making linkages with higher educational institutions is an attempt to bring together field experience and academic research for better policy-making in post disaster reconstruction and rehabilitation.

He remarked that the collaboration between academic institutions and field experience of ERRA will have positive impact on thought processes, policy matters, and research on post disaster reconstruction and rehabilitation.

ERRA being a progressive organisation knows future of the country which lies in well trained human resource, and students are symbol of future.

The aim of "Linkages Programme" initiated by ERRA is to share knowledge and expertise with academia and students of higher educational institution, he said. -APP

Two more varsities for Balochistan announced

ISLAMABAD: The government is all set to establish two universities in the Balochistan province to facilitate enrollment of about 4000 students in higher education during next five to ten years.

"One university would be established in Turbat with a total cost of Rs1555.391 million and another at Loralai with cost of Rs1493.751 million," sources told APP adding the aim is to promote higher education in comparatively backward areas of the country.

Giving break-up, the sources said that the objective of establishing these universities is to provide better opportunities of higher education to the students of Turbat, Loralai and the adjoining districts of Panjgur, Awaran, Gwadar, Barkhan, Kohlu, Musakhel, Killa Saifullah, Zhob and Ziarat.

MUZAFFARABAD: Foreigners and participants of International Kashmir "As a result of implementation of these Conference taking keen interest in the pictures of tourist attractions in projects, the enrolment of the students at Muzaffarabad.-Online graduation, masters, MPhil and PhD level will increase considerably," the sources added.

Initially nine programs in eight departments have been proposed with total enrolment of 1500-2000 in each university in the next 5-10 years.

The programs include, BBA, BCS, BEd, BCom, MED, 2-year master programme in local languages, two-year master programme in English language, 2-year master programme in Political Sciences and 2-year programme in ISLAMABAD: A pilot project to trillion have potential to generate import bill, reduce unemployment Mathematics.

The provincial government has already generate electricity from Thar Coal 5000 MW electricity for at least 800 ratio and help strengthen economy Project through gasification is in years to meet growing energy and rupee," according to Pakistan provided 1000 acres land for development of all proposed facilities at Turbat Economy Watch. advance stages and will complete demand of the country.

Under Dr Samar Mubarakmand surpervision

TV PROGRAMMES

regional campuses headed the meeting from regional campus, Lahore.

He told that building of regional campus, Bahawalpur is going to build near airport and computer lab, library, exams center, lecture hall like facilities would be provided to students in the campus.

Dr Sangi said that University Rural Development Institute and Renewable Energy Institute would also be set up in Bahawalpur in addition Institute of Information Technology in Dera Ghazi Khan while Community Health and Para Medical Training Institute in Muzaffarabad would be made.

He further said that focal point of the University is to balance the

University and 500 acres for the Loralai University.

The annual recurring expenditure for Turbat University has been estimated at Rs165.654 million where as annual income after completion has been calculated at Rs147.6 million.

Similarly, the annual recurring expenditure and annual income after completion of the Loralai University have been estimated same as in the Turbat University.

Period of completion for establishing both the universities have been fixed 48 months, the sources added.

Giving further breakup of the expenditures for establishing Turbat University, the sources said that the total funding of the project include Rs1357.831 million local and Rs197.56 million foreign exchange component.

Similarly, the expenditure of Loralai University includes Rs1296.192 million local and Rs197.560 million as foreign exchange component.

The major expenditures include civil works including external development and consultancy for which Rs1020.726 million have been estimated for Turbat University and Rs976.59 million for Loralai University.

Similarly, Rs253.354 million each have been estimated for the development of human resource development at both the universities. Rs37.585 million each for networking, computerization and automation, Rs12.45 million each for office and teaching equipment, Rs27.633 million each for furniture and fixture, Rs30 million each for books and journals.-APP

KARACHI: Administration workers load mud in trucks to carrying away from seaside in Clifton.-Online

3 Monday, February 21, 2011

US dollar weekly outlook

Euro gains likely this wk but rise seen capped Euro-zone political events could cap euro gains US data next week unlikely to change rate outlook NEW YORK: The euro is likely to add modest gains against the dollar this week, bolstered by increased expectations of a European Central Bank rate hike and a fairly positive technical outlook in the short term.

The euro's rise, however, may be limited by a slew of political events this week that may inject uncertainty. Some analysts said the euro may get above $1.38 but was unlikely to hit $1.40.

On the charts, the euro's prospects have turned bullish, analysts said, with support clustered around $1.3250, the 61.8 per cent Fibonacci retracement of the January to February rally.

Resistance comes in at $1.3745, the Feb 9 high. A break of that level should bring the rally back though $1.3862, the Feb 2. peak.

Aside from an upbeat technical view, the euro has benefited on Friday from a report citing ECB policymaker Lorenzo Bini Smaghi as saying the central bank will be ready to tighten policy as price pressures mount.

"The euro looks very well supported going forward," said Richard Franulovich, senior currency strategist, at Westpac in New York. "Aside from a hawkish ECB, central banks have been buying euros for reserve diversification purposes. I think we can hit that $1.3862 high again."

The positive prognosis on the euro comes amid expectations of

more political debate ahead of the election this Friday in Ireland.

Terms of the European Union loans to Ireland and the fiscal consolidation plan would be two of the key issues.

There are also German regional elections, ongoing issues related to Portugal, and possible debate about the new law on capital requirement in Spain.

These may all add an element of caution in the market when trading the euro.

Overall, analysts said it may well come down to interest rate expectations. While the ECB ponders rate increases, the Federal Reserve continues its Treasury purchase program, which "was sized so as to represent about a 75-basis-point reduction in the fed funds target rate," said David Watt, senior fixed income and currency strategist, at RBC Capital Markets in Toronto.

"As the...ECB muses on rate hikes, the Fed is still effectively 'cutting' rates. Dollar rallies tend to fade when these factors are put in focus," Watt said.

Bini Smaghi's comments come just two weeks after ECB President Jean-Claude Trichet talked down the prospect of rate hikes during an ECB February press conference, an about face after sounding hawkish in January.

In late afternoon New York trading, the euro was up 0.6 per cent against the dollar at $1.3685,

after hitting a high of $1.3716 on electronic trading platform EBS, its highest in more than a week.

On the week, the euro rose 1.3 per cent vs the dollar, rising after two straight weeks of losses.

The ICE Futures' dollar index fell 0.4 per cent to 77.679.

Surprisingly the dollar, a traditional safe-haven along with the Swiss franc, failed to capitalize on heightened geopolitical tensions in the Middle East.

Westpac's Franulovich said the dollar's weakness amid tension in that region may be attributed to general low volatility across all asset classes, prompting investors to take on more risk. Implied volatilities, which tend to reflect risk sentiment in the currency market were trading near longterm lows. Analysts said the dollar's performance this week depends on action in the euro.

"The US economic numbers this week won't change the market's view on QE2 (quantitative easing), which is still expected to end in June as scheduled, or interest rate expectations," said Vassili Serebriakov, currency strategist, at Wells Fargo in New York.

Meanwhile, currency speculators continued to trim bets against the US dollar in the latest week as they went short the yen for the first time since June, data from the Commodity Futures Trading Commission showed on Friday. -Reuters

Specs trim bets vs dlr, turn against yen NEW YORK: The value of bets against the dollar fell in the latest week as currency speculators went short the yen for the first time since June, Commodity Futures Trading Commission data showed on Friday.

The value of the dollar's net short position slipped to $23.2 billion in the week ended Feb. 15, from $26.3 billion, according to CFTC and Reuters calculations. The net short dollar position fell largely due to a sharp swing in yen positions, with speculators going short the currency to the tune of 18,548 contracts for the first time since June 2010. Speculators were long the yen by 36,731 contracts the prior week.

Meanwhile, speculators nearly doubled bets in favor of the Canadian dollar while only slightly trimming euro longs. A short position is a bet a currency will decline in value, while a long position bets it will appreciate. The Reuters calculation for the aggregate US dollar position is derived from the net positions of International Monetary Market speculators in the yen, euro, British pound, Swiss franc, Canadian dollar and Australian dollar. -Reuters

Sterling up on rate hike talk LONDON: The pound reached a two-week high against the dollar after UK retail sales surged last month by almost four times the amount forecast by economists, adding to signs the Bank of England has room to raise interest rates.

Sterling also advanced against the euro amid speculation the central bank will act to curb inflation. Retail sales rose 1.9 per cent in January, compared with a revised drop of 1.4 per cent the previous month, the Office for National Statistics said in London.

The gain was the biggest since February 2010 and exceeded the 0.5 per cent median forecast of 22 economists surveyed.

"It seems inevitable that rates will need to go up in the next two quarters," said Chris Huddleston, a trader at Investec Bank Plc in London. "The retail data adds to that argument. The market is moving to price in further gains in sterling."

The pound rose as much as 0.5 per cent to $1.6247, the strongest intraday level since Feb. 3, before trading at $1.6219 at 3:30 p.m. in London. Britain's currency strengthened 0.1 per cent versus the euro to 84.04 pence.

Pressure on the Bank of England to raise its key rate from a record low of 0.5 per cent increased this past week after a Feb. 15 report showed inflation accelerated to double the central bank's 2 per cent target.

Sterling surged after policy maker Andrew Sentance said in a speech in London that the central bank should raise rates to boost the pound as a means of curbing inflation. King dismissed the spurt in inflation in his letter to Osborne, saying raising rates quickly would hurt the economy, which unexpectedly shrank by 0.5 per cent in the fourth quarter.

Money markets signal the Bank of England may boost its bank rate by about 75 basis points by year-end, according to the Sterling Overnight Interbank Average, or Sonia, Tullett Prebon Plc data shows. -Agencies

Soy, wheat Ivorian turmoil lifts NY Copper up, dive on cocoa to 14-month peak discounts YORK/LONDON: US ued to extend their gains as tight China rate China move NEW cocoa futures marched up to global supplies have forced WINNIPEG, MANITOBA: their highest level in 14 months roasters to buy, despite the high move Soybeans and wheat fell sharply on on Friday on prospects of bank prices, and robusta coffee hit a Friday, adding to their biggest weekly losses in three months, after China's move to curb inflation raised concerns about demand and a wave of profit-taking and soy options trading pulled markets down.

Chicago Board of Trade soybeans for March delivery fell 36-1/2 cents, or 2.6 per cent, to $13.68 a bushel, losing most of the ground gained on Thursday when prices surged on hopes that China would cut its import duties on soybeans and soyoil.

Nearby soybeans posted a 3.4 per cent weekly drop, the biggest in three months.

CBOT wheat for March delivery plunged 28-1/2 cents, or 3.4 per cent, to $8.22-1/4 a bushel. For the week, the front month declined 5.2 per cent. Wheat remains underpinned by drought hitting China's winter wheat crop, although snow this week has brought relief to some areas. Chicago Board of Trade corn for March delivery rose to an early peak of $7.15 a bushel, the highest level for the front month in more than 2-1/2 years but then dropped back to $7.09-3/4, off 3 cents or 0.4 per cent. Corn eked out a slight weekly gain of 0.5 per cent. -Reuters

nationalization in top grower Ivory Coast, while arabica coffee scampered to a near-14-year peak on tight supplies.

Sugar settled mostly lower, with top grower Brazil set to harvest next month and possibly begin to crush earlier than previously expected, easing demand slightly.

Ivorian incumbent Laurent Gbagbo's government said the state would take control of all banks that had suspended operations in the West African state during the week, a move that turned the nation's post-election crisis into financial meltdown.

ICE benchmark May cocoa futures rose $61, or 1.8 per cent, to settle at $3,499 per tonne, the highest close for the secondposition contract since December 2009. The session high reached $3,511, although total volume was thin at just over 13,000 lots, 40 per cent below the 30-day average.

Liffe May cocoa closed up 31 pounds at 2,263 pounds a tonne, after earlier skipping to 2,279 pounds a tonne, its highest level since mid-July.

Arabica coffee prices contin-

2-1/2-year peak, dealers said.

ICE May arabicas climbed 4.15 cents, or 1.5 per cent, to settle at $2.73 per lb, the highest for the second position since May 1997. The contract closed the week up 7.1 per cent, the biggest weekly gain in nine weeks.

Arabica coffee open interest rose for the first time since last week on Thursday, after falling 16 per cent in the past five sessions to a 11-month low.

Liffe May robusta coffee finished up $32 at $2,337 per tonne, after rising to $2,358 a tonne, the highest since July 20080. Robusta prices have risen as some roasters substitute the cheaper bean into their blends.

Raw sugar futures closed lower as price moves remained choppy and markets were pressured ahead of next month's harvest in top grower Brazil.

ICE May raw sugar fell 0.44 cent to settle at 28.42 cents per lb. London May white sugar closed down $6.20 at $720.60 per tonne, while the deferred contracts closed higher. Reuters

Cotton limit down, after setting record high NEW YORK: US cotton futures soared in the overnight session to an all-time high at $2.1102 cents in the March contract, then slid by the 7 cent downside limit in Friday's midmorning where prices stayed up to the close.

A short while later, ICE Futures US suspended trading in cotton options when they fell by 14 cents, twice the limit for futures prices, paralyzing the market for a second day.

After a flood of short cover buying, that had pushed prices to successive record levels, had run its course any remaining positions at the highs fled for the

exits, brokers said.

"Once the last short was covered, everyone rushed for the door at the same time. Nothing but a vacuum below. Buyers disappeared rather than try to catch a falling knife," said Mike Stevens, an independent analyst in Mandeville, Louisiana.

All but one contract ended down by the 7 cent limit, with March cotton on ICE Futures US finishing at $1.9702 cents, a 3.43 per cent decline, after setting a new record high overnight at $2.1102 a lb.

Benchmark May cotton also dropped 7 cents, or 3.47 per cent, to close at the downside

limit of $1.9493. It set a high at $2.0893 overnight.

Volume was robust in both contracts, with 10,384 March lots and 18,145 May lots changing hands.

Since Tuesday, a rush by mills to price cotton that was bought on call last year basis the March contract drove futures prices to ever higher record levels.

But a dearth of available US cotton meant prices have been on the rise since the beginning of the year.

Mills holding out for lower prices waited too long to cover short positions in March futures, taken out as a hedge against their unpriced cash contracts.-Reuters

NEW YORK/LONDON: Copper ended firm on Friday after another round of monetary tightening in China failed to surprise bullish traders who held their bets on healthier demand prospects for industrial metals this year.

Sensitive to demand from a country accounting for nearly 40 per cent of estimated global consumption this year, copper prices initially fell on the news.

Losses were limited and prices bounced back into positive territory as traders weighed longerterm considerations.

London Metal Exchange (LME) three-month copper closed up $58 at $9,860 a tonne, a little more then 3 per cent away from its all-time record of $10,190.

COMEX copper for March delivery eased 0.20 cent to settle at $4.4820 per lb, extending a phase of consolidation from Tuesday's record of $4.6495.

Analysts continued to see good technical support at a longer-term trendline near $4.41. Copper is widely expected to build on its nearly uninterrupted rally in the second half of 2010 as ore grades decline, new mines remain scarce and top buyer China grows.

Nickel, untraded at the close, was last at $29,150/29,155 a tonne, from a close of $28,490 a tonne. A 725-tonne build in LME copper stocks placed them at a six-month high at 407,925 tonnes. This follows weekly data from China showing copper inventories rose 11.7 per cent from last Friday.

Aluminum stocks, which have neared record highs of 4,640,750 tonnes hit in January 2010, fell 5,025 tonnes to 4,593,175 tonnes.

Zinc hit a three-month high of $2,565 a tonnne before closing up $39 at $2,553. Traders said some investors had pulled out of copper to buy zinc, which was the worst performer among industrial metals in 2010.-Reuters

Asian currencies

Mostly log gains for week on rates outlook SINGAPORE: Asian currencies gained last week, led by South Korea's won, on speculation investors will pour more funds into the region as interest rates are raised to stem gains in consumer prices.

The yuan had its biggest weekly advance in a month on speculation China's inflation fight will lead to faster appreciation sought by major trading partners including the US, Brazil and India.

The Philippine peso had its best week in five months after a central bank report showed citizens living overseas sent record funds home last year.

"Inflation pressure is forcing Asian central banks to tighten monetary policy," said Ho Woei Chen, an economist at United Overseas Bank Ltd. in Singapore.

"Higher interest rates are driving inflows and Asian currencies higher. The yuan

is another factor ahead of the G-20 meeting."

The won strengthened 1.5 per cent this past week to 1,112.10 per dollar in Seoul. The peso rose 1.4 per cent to 43.33, Indonesia's rupiah climbed 1 per cent to 8,860 and India's rupee appreciated 1.1 per cent to 45.21. The Singapore dollar advanced 0.8 per cent to S$1.2748.

China, India, Indonesia, South Korea and Thailand have all boosted borrowing costs this year, widening the gap with the Federal Reserve's near-zero benchmark rate, as Asia leads a global economic recovery.

Developing economies in the region will expand 8.4 per cent this year and next, double the average 4.2 per cent pace of Latin America and more than triple the 2.5 per cent annual growth in industrialized nations, the International Monetary Fund estimated last

month.

China's central bank raised its reference rate for the yuan to 6.5781 per dollar on Friday, the strongest level since a dollar peg ended in July 2005. The currency, which is allowed to trade up to 0.5 per cent on either side of the daily fixing, touched 6.5721, the highest since official and market exchange rates were unified at the end of 1993.

Data this past week showed inflation accelerated to 4.9 per cent in January from 4.6 per cent the previous month, exceeding the government's goal of keeping the rate within 4 per cent this year.

Elsewhere, Thailand's baht advanced 0.9 per cent this past week to 30.59 against its US counterpart and Malaysia's ringgit advanced 0.8 per cent to 3.034. Taiwan's dollar fell 0.6 per cent to NT$29.408. -Agencies

C$ slumps as soft CPI cools rate talk TORONTO: Canada's currency fell against the US dollar on Friday after data showed that the country's annual inflation rate eased last month, making it less likely the Bank of Canada will hike rates in the near term.

Canadian government bond prices ticked higher on the consumer price index report, diverging from US Treasuries, which fell on the long end as traders prepared for a new supply of government debt next week.

Statistics Canada said the country's inflation rate slipped to 2.3 per cent in January from 2.4 per cent in December as energy price increases eased. The year-onyear core rate, which is closely watched by the Bank of Canada, slipped to 1.4 per cent from 1.5

per cent.

"Canada was the worst performer of all the primaries (major currencies) for the day," said Camilla Sutton, chief currency strategist, at Scotia Capital in Toronto.

"This morning's inflationary print just highlights that there really are few inflationary pressures in Canada and to some degree that's pushed out expectations for an interest rate hike."

Canada's dollar initially firmed after the figures to as high as to C$0.9825 to the US dollar, or $1.0178 -- not far off the near three-year high of C$0.9816 hit on Thursday.

But it quickly pared the gains as traders trimmed their bets on the likelihood of a near-term

interest rate hike by the Bank of Canada, which targets 2 per cent core inflation.

The currency ended the North American session at C$0.9860 to the US dollar, or $1.0142, down from Thursday's North American session close of C$0.9849 to the US dollar, or $1.0153.

A Reuters poll showed that none of Canada's 12 primary security dealers expect the central bank to raise rates at its March 1 policy-setting announcement, and several have pushed back rate hike forecasts from a month ago.

"We thought there was a risk of them hiking on March 1 but I think this (inflation data) removes that risk," said Ryan Bohren, an economist at Bank of America Merrill Lynch. -Reuters

Oil slips in volatile trade, eyeing Mideast China bank reserves rate hike could curb oil demand NEW YORK: Oil prices slipped on Friday in volatile pre-holiday trading, as front-months relinquished early gains made on news Egypt will allow Iran to send navy ships through the Suez Canal and intensifying unrest in the region.

US front-month March crude contract expires next Tuesday after Monday's US Presidents Day holiday and, along with thinned pre-holiday trading volume, the proximity of the contract expiration was blamed for some of the volatility.

"People are taking pre-weekend profits, after prices moved all over the place. The news that Egypt is allowing passage of the Iranian warships helped NYMEX crude to the upside, but there (were) no other strong headlines after that," said Tom Knight, trader at Truman Arnold in Texarkana, Texas.

US crude for March delivery fell 16 cents to settle at $86.20 a

barrel, off an $87.88 intraday peak. March crude did manage a 62-cent gain for the week.

In contrast, US April crude rose 87 cents, or 0.98 per cent, to settle at $89.71 a barrel after jumping to a $90.96 peak.

All the US crude futures contracts except front-month March finished higher.

ICE Brent crude for April delivery fell 7 cents to settle at $102.52, but rose 1.07 per cent for the week, a fourth straight weekly rise. Wednesday's Brent intraday peak of $104.52 was the highest since September 2008.

The gap between US and Brent crude prices also seesawed in the volatility. While US front-month March crude and Brent April contracts closed slightly lower, the US April contract posted a nearly 1 per cent gain, narrowing the premium of its Brent counterpart after that spread hit a record $16.51 the previous session.

The Middle east turmoil helped oil

recover from early weakness caused

by China's bank reserve requirement increase that revived concerns about curbed oil demand growth.

"They have been trying to curb liquidity for some time, so little surprise and not as bad as a benchmark rate rise, but still slightly weighing on sentiment," said Andrey Kryuchenkov from VTB Capital.

The weak dollar index offered some support for oil prices. A weak dollar usually lifts dollardenominated oil prices because it lowers the cost to consumers using other currencies and also the value of currency paid to producers. The euro gained broadly on heightened expectations the European Central Bank will raise interest rates.

Finance ministers and central bankers from the Group of 20 meet in Paris this weekend, with the global economy and commodity price inflation prime issues. -Reuters

Gold notches best weekly gain since Dec NEW YORK: Gold rose above $1,390 an ounce on Friday, notching its best weekly performance since December, underpinned by fears over a European debt crisis, rising inflation and growing unrest in the Middle East.

Bullion's gains sparked strong investment buying in silver, which soared to 31-year high, further widening silver's gains over gold and sending the gold-silver ratio to its lowest level in 13 years.

"There is a big concern over the weekend that we can see some problems with the EU sovereign debt, in particular there are worries that Portugal may need a bailout very soon. Gold as a safe haven is certainly back in focus," said Bill O'Neill, partner of commodities firm LOGIC Advisors.

Gold also benefits as a safe haven as worries about the political stabil-

ity of the region have flared this week, with unrest spreading after protests in Tunisia and Egypt unseated leaders there.

Spot gold rose 0.3 per cent to $1,386.75 by 1934 GMT, having earlier hit a five-week high of $1,391.75. Bullion has risen in the five straight sessions, the longest streak since September. It gained almost 3 per cent for the week.

US gold futures for April delivery settled up $3.50 at $1,388.60 an ounce, with volume about 50 per cent below its 30-day norm. That was in line with recent lower-thannormal turnover, a possible sign of dwindling trading interest.

Silver gained 2.1 per cent to $32.42 after hitting a high of $32.86, its strongest level since 1980.

The gold/silver ratio -- the number of ounces of silver needed to

buy an ounce of gold -- dropped to its lowest in 13 years at under 43 on Friday, Reuters data showed, as silver prices outperformed.

Investment demand for the largest silver-backed exchangetraded fund iShares Silver Trust has also shown signs of stabilizing after hefty outflows last month.

Barclays Capital said in a note it expects silver to continue to outperform gold, with silver trading as high as $37 an ounce.

The technical picture has also sharply improved this week, with prices breaching key resistance levels, including bullion's 50-day and 100-day moving averages, analysts said.

Platinum dropped 0.5 per cent to $1,832.99 an ounce, while palladium gained 0.8 per cent to $847.72, having earlier touched a 10-year high at $855.47. -Reuters

4 Monday, February 21, 2011

A Test of Ties

The Financial Daily International Vol 4, Issue 187

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

T

he arrest of an American man for killing two Pakistanis has Honorary Advisory Board created the worst crisis in years Haseeb Khan, FCA S. Muneer Hussain Rizvi between uneasy allies in Washington Asim Abbas Ashary, CPA Khurram Shehzad, CFA and Islamabad, threatening the war in Afghanistan and the stability of the Akhtar M. Zaidi, FCA Prof. Zakaria Sajid (KU) Pakistani government.

Dr. A. Hadi Shahid, FCA Zahid Bukhari SVP HBL (retd) US officials are putting heavy presMuhammad Arif Ismat Sabir sure on Pakistan's fragile government Head office to secure the release of 111-C, Jami Commercial Street 11, Phase VII, DHA Karachi Raymond Davis, Telephone: 92-21-35311893-6 Fax: 92-21-35388428 URL: www.thefinancialdaily.com a former special Email Address: editor@thefinancialdaily.com forces soldier who they say is a Lahore office US consular 24- Peshawar Block, Fortress Stadium, Lahore employee with Telephone: 92-42-6675595 Fax: 92-42-6664349 Email Address: editor@thefinancialdaily.com diplomatic immunity.

Davis, whose precise connection to the US government has not been officially confirmed, shot two men on a Lahore street last month during what he said was a robbery attempt.

President Asif Ali Zardari's government is reluctant to add fuel to a fiery anti-American mood in Pakistan and has said local courts must decide.

With Islamist militants seeking to capitalise on the Davis case, Washington must be careful not to The United States on Friday vetoed a resolu- undermine Zardari as it seeks a swift tion tabled in the UN Security Council con- resolution. demning continued Israeli settlement building. "The stakes here are huge. Pakistan is key to the war with al Qaeda and The other 14 Security Council members voted the war in Afghanistan," said Bruce in favor of the draft resolution but the US as Riedel, a former senior CIA analyst one of the five permanent council members who led President Barack Obama's of US policy in Afghanistan with the power to block any action of the review and Pakistan in 2009.

Council, voted against. The US veto is bound Here are several scenarios for how to send the wrong signal to Israel and further the Davis case could unfold and effect US-Pakistan ties: encourages its intransigence and impunity.

DAVIS FREED BUT AT WHAT The resolution described the settlements as PRICE FOR PAKISTAN? illegal and urged the Jewish state to immediate- Analysts in the ly and completely halt all such activities. United States see little chance that Diplomats said the views contained in the res- Davis will be olution, which would have been legally binding convicted and had it (resolution) passed, are generally sup- kept in Pakistani saying a ported by the Obama administration. However, custody, solution eventuit was disappointing to note that the US refused ally will be to allow the Security Council to intervene on found.

Islamabad has the ground that it was unwise for the Council to good reason to attempt to resolve the core issues that divide want the problem Israelis and Palestinians. to go away.

The US stand that UN was not the correct A major recipient of US military aid, Pakistan needs the help to equip

soldiers fighting militants who have waged war against the government since 2001. Pakistan also has relied on US aid to help it recover from natural disasters and to battle widespread poverty.

With that in mind, the Zardari government may lean hard on Pakistan's Foreign Ministry to certify that Davis

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nity for them to increase their acceptance among the people."

On Friday, protesters in Lahore and other cities demanded Davis be tried in Pakistan. Some of the demonstrators burned US flags.

One US official said the Pakistani government's reaction had been colored by the anti-government protests sweeping the Middle East and the fear that they could spread to Pakistan.

"None of this happens in a vacuum," the official said.

"Obviously, with every image from Libya, Bahrain, Tunisia, Egypt, this factors into the Pakistani calculus."

DAVIS REMAINS IN JAIL, US TIES SUFFER The issue already has driven a

US officials are putting heavy pressure on Pakistan's fragile government to secure the release of Raymond Davis, a former special forces soldier who they say is a US consular employee with diplomatic immunity.

US vetoes resolution against Israel

does have diplomatic immunity from prosecution in local courts.

The Lahore High Court, which has said it will follow the Foreign Ministry's guidance, would then declare that Davis can be released, ending a threat to multibillion-dollar US aid.

But the government, already facing public anger for tacitly backing US drone strikes on militants in tribal areas, could pay a heavy price if it is seen caving in to US pressure over the Davis case.

"If this happens then there will be a storm, everybody will be involved ... but the most effective response will come from the Taliban and al Qaeda,"

"If this happens then there will be a storm, everybody will be involved ... but the most effective response will come from the Taliban and al Qaeda," said Pakistani political analyst Khalid Ahmed. "This is a very good opportunity for them to increase their acceptance among the people."

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wedge between Islamabad and Washington, adding to long-standing US complaints that Pakistan has not acted strongly enough against militants that are killing US soldiers across the border in Afghanistan.

US government sources say the case has clouded the critical relationship between the countries' security agencies, possibly making it even harder for the United States to succeed in Afghanistan, where bloodshed reached record levels in 2010.

One senior US administration offi-

The White House on Monday asked Congress to give Islamabad $1.1 billion through the Pakistan Counterinsurgency Fund to help fight Islamists and another $1.9 billion in economic aid. The money is for the fiscal 2012 year that begins Oct 1.

place for trying to resolve the decades old Israel-Palestine conflict also looks hypocritical.

The continued building drive flouts the internationally backed peace plan. It is regrettable that the US chose to oppose a resolution sponsored by some 130 countries and backed by the Palestinian leadership.

US ambassador to the United Nations Susan Rice, said Washington had regrettably chosen to oppose the resolution, sponsored by some 130 countries and backed by the Palestinian leadership. The logic put forward by the US that resolution risks hardening the positions of both sides and staying out of negotiations seems disappointing to the world at large.

It is interesting to note several other EU countries were among the resolution's co-sponsors.

British Ambassador Mark Lyall Grant, speaking on behalf of Britain, France and Germany (also the permanent members of Security Council) condemned Israeli settlements as illegal under international law. He added that the European Union's three biggest nations hope that an independent state of Palestine will join the United Nations as a new member state by September 2011.

Subsequently, Israel has asked the Palestinians to return to the negotiation table without preconditions. Foreign ministry spokesman of Israel Yigal Palmor in a statement said, "Only thus, and not through seizing the Security Council, will it be possible to advance the peace process so as to benefit both parties and to serve the cause of peace and security throughout the region."

The statement of Sarah Leah Whitson, Middle East Director of New York-based Human Rights Watch has very nicely stated Palestinian sentiments saying that the US veto undermined international law and suggested the Obama administration was being hypocritical.

President Obama wants to tell the Arab world in his speeches that he opposes settlements, but he won't let the Security Council tell Israel to stop them in a legally binding way.

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.

cial said if a solution is not found quickly, the US Congress could cut foreign aid.

The White House on Monday asked Congress to give Islamabad $1.1 billion through the Pakistan Counterinsurgency Fund to help fight Islamists and another $1.9 billion in economic aid. The money is for the fiscal 2012 year that begins Oct. 1.

"The longer this goes on, the higher the potential cost in the relationship," the official said. "Sooner or later, if they can't resolve it, Congress is going to start sending some signals."

Shuja Nawaz, director of the South Asia Center at the Atlantic Council, a Washington think tank, said Pakistan may again start to curtail issuing visas to US diplomatic personnel, which has been a major irritant in the past.

PAKISTAN GOVERNMENT BROKERS A DEAL There is mounting speculation the United States might back payment of compensation, or blood money, as laid out under Pakistani law, even if it is loathe to support such a payment in what it sees as a case of self-defense.

Under this scenario, Pakistan would facilitate US contact with the families of the two slain men -- and, presumably, a third who was struck and killed by a US vehicle about the same time -- to offer a deal.

"The best, perhaps the only, option for the government is to pacify the relatives of those killed to come to some compromise," said Talat Masood, a retired Pakistani general.

"It's the only option everyone seems to be working on."

This would require the families' acceptance of such a payment, sanctioned by Islamic law and common in some parts of rural Pakistan as a way to settle disputes.

But emotions are running high in the Davis case, possibly fueled by heavy media attention.

One of the slain men's wives committed suicide shortly after the incident and other family members have vowed they will be satisfied only by vengeance.

said Pakistani political analyst Khalid Ahmed. "This is a very good opportu-

The Groupon Effect T

hey are being called the Facebook revolutions, but a better term for the uprisings sweeping through the Middle East might be the Groupon effect. That is because one of the most powerful consequences satellite television and the Internet have had for the protest movements is to help them overcome the problem of collective action, like Groupon has harnessed the Web to do for retailers.

"It is a question of coordinating people's beliefs," said Daron Acemoglu, a professor of economics at the Massachusetts Institute of Technology, who, with Matthew Jackson of Stanford University in California, is working on a paper about the effect of social networks on collective action problems.

Protesting against an authoritarian regime is a prime example of this issue, Mr. Acemoglu said, because opponents of a dictator need to know that their views are widely shared and that a sufficient number of their fellow citizens are willing to join them in the streets to make public opposition worthwhile.

"I need to know if other people agree with me and are willing to act," Mr. Acemoglu said. "What really stops people who are oppressed by a regime from protesting is the fear that they will be part of an unsuccessful protest. When you are living in these regimes, you have to be extremely afraid of what happens if you participate and the regime doesn't change."

That makes publicly protesting an oppressive regime a classic collective action problem: If everyone who wants regime change takes to the streets, the group will achieve its shared goal.

But if too few protest, they will fail and be punished.

Even if an overwhelming majority wants change, it is smart for individuals to speak out only if enough compatri-

ots do, too. Getting a big counts is worthwhile if it once a sufficient mass of supenough group to participate in attracts enough extra cus- porters is identified: Even if an effort that is widely tomers so that the retailer can we all watch television coverdesired, but works only if it make up in the scale of his age of demonstrations togethhas mass support, is one of the sales what he loses in each er and express our enthusiasm classic problems for the moveof political sciment online, "It is a question of ence and organiswe have no ers of social guarantee our coordinating people's movements. neighbors will As protests have beliefs," said Daron Acemoglu, take the physispread from cal risk of a professor of economics at Tunisia to Egypt going out in the and now to streets until the Massachusetts Institute Bahrain, Libya they actually and other parts of do so. of Technology, who, with the Middle East, Even so, the Matthew Jackson of Stanford combination of the power of television, particularsatellite televiUniversity in California, is ly Al Jazeera, and sion and social the Internet to working on a paper about the networking has spread informamade it dramateffect of social networks on tion and to help ically easier for with the practicalthe disaffected collective action problems. ities of organising to overcome demonstrations one of the cenhas become readily apparent. individual sale because of the tral obstacles to organising Taken together, television, lower price tag. mass-based regime change -Facebook and Twitter may Groupon has solved that letting each individual know have been even more power- problem by creating sales that what views are shared by ful in helping to solve the only occur if a sufficient num- enough people to make problem of collective action, ber of people sign on to them. protesting worthwhile, and by giving people unhappy The Groupon technique is relatively safe. with their governments the particularly powerful because This new power is transforconfidence that their views once the tipping point is mative. As Acemoglu said, a r e " t h e r e widely Groupon has solved that problem h a v e shared. always by creating sales that only occur if been many This potential regimes a sufficient number of people sign on for techthat are nology unpopular, to them. The Groupon technique is to overbut it has c o m e taken a particularly powerful because once collecw e l l the tipping point is reached, all the t i v e organised action civil sociinterested shoppers are locked in to probety to lems has participating -- your investment in the allow that b e e n pent-up Groupon coupon is irrevocable from taken to frustration the next to find a that moment on. level in voice." the consumer space by Groupon. The reached, all the interested Technology is making it much swiftly growing Chicago- shoppers are locked in to par- easier for frustrated societies based electronic coupon com- ticipating -- your investment to express their collective pany, which rejected a multi- in the Groupon coupon is anger. billion-dollar bid from irrevocable from that moment Once that collective action Google earlier this year, is on. problem is overcome, the act built around the retailer's verPolitical activists have not of physically coming together sion of the collective action yet figured out an equivalent to express a deeply felt emoproblem: Offering deep dis- way of ensuring participation tion can be - as we have seen

“

“

in Egypt and Tunisia - very powerful. We are social animals who take pleasure in intense, mass experiences: hence the continued popularity, in this digital age, of sports events and live music concerts.

But even though the Groupon effect makes it easier to bring people together to oppose unpopular regimes, it may be harder for new technologies to overcome the "day after" problem. Regime change is a classic matter of collective action and of a tipping point -- if enough of us do not like the government, and if we can find a way to coordinate our protests (and, crucially, if the regime lacks the means or the will to fight back), we can topple our oppressive rulers.

Installing a new and better regime is a much tougher project, and one which may not be as easily facilitated by new technologies. Social networks are good ways to discover whether our beliefs are shared (Mubarak must go, etc.) and even to lock us in to specific, self-contained acts (buying that $10 coupon from my local pizzeria).

We haven't yet figured out how to use them to facilitate more complicated, longerterm collective actions that require significant commitment and negotiation. Indeed, some critics of cyberutopianism, like Malcolm Gladwell of The New Yorker, argue that social networking may actually make it harder to effect painful, complex social change because it gives us an easy way to achieve the thrill of engagement without real effort or investment.

That is the next challenge for the cyber activists: using the Internet to facilitate social transformation that is more complicated and harder than getting a sufficient mass of people to come out to the streets. A good challenge, perhaps, for the geniuses at Groupon?-Reuters

5

Monday, February 21, 2011

EU stocks gain for 3rd week; Barclays, greek banks rally

Zain rejects all three offers for Zain Saudi stake Weekly Review

Khi mkt makes meek week

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

11,943.34 12,041.15 97.81 0.82 296.86

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

3,565.28 3,603.31 38.03 1.07 14.37

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

2,931.08 2,923.19 7.89 0.27 0.10

Major Gainers

Symbol

Close

Change

ULEVER 4,679.08 NESTLE 3,596.00 BATA 653.40 DAWH 215.28 ZIL 83.80

533.58 244.90 28.15 22.75 14.02

Nawaz Ali

Major Losers

Symbol RMPL SIEM MTL UPFL INDU

Close

Change

2,539.75 1,019.49 492.43 1,308.88 276.40

-333.48 -76.41 -45.85 -31.44 -12.60

Top 5 Volume Leaders

Symbol LOTPTA NCL NML ENGRO DGKC

Close Vol (mn) 15.99 26.26 62.84 219.33 24.42

31.96 19.49 17.68 11.42 11.25

Active Issues Plus Minus Unchanged

156 199 77

Sector Updates FERTILISER

NEW YORK: A US flag hangs outside the New York Stock Exchange building.-Reuters

000 tonnes

Urea Offtake (Jan to Dec 10) Urea Offtake (Dec 10) Urea Price (Rs/50 kg) DAP Offtake (Jan to Dec 09) DAP Offtake (Dec 10) DAP Price (Rs/50 kg)

6,123 626 1,020 1,317 90 3,143

AUTOMOBILE ASSEMBLER PAK SUZUKI MOTOR Units Production (July 10 to Jan 11) 47,153 Sales (July 10 to Jan 11) 45,113 Production (Jan 11) 6,698 Sales (Jan 11) 6,793

INDUS MOTOR CO Production (July 10 to Jan 11) Sales (July 10 to Jan 11) Production (Jan 11) Sales (Jan 11)

29,078 28,293 5,596 5,885

HONDA ATLAS CAR Production (July 10 to Jan 11) 9,279 Sales (July 10 to Jan 11) 8,779 Production (Jan 11) 1,511 Sales (Jan 11) 1,904

DEWAN FAROOQ MOTORS Production (July 10 to Jan 11) Sales (July 10 to Jan 11) Production (Jan 11) Sales (Jan 11)

186 113 0 23

BANKING SECTOR Scheduled bank (Rs in mn) Deposit (Feburay 4,11) 5,046,861 Advances (Feburay 4,11) 3,140,675 Investments (Feburay 4,11) 2,100,015 Spread (Feburay 4,11) 7.61%

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

1,122 188 81 15 727 138 3,426 634 32 6 4,331 690 6 2

PRICES (Ex-Refinery)

Rs

MS (1 Feb 11) MS (1 Jan 11) MS % Chg Kerosene (1 Feb 11) Kerosene (1 Jan 11) Kerosene % Chg JP-1 (1 Feb 11) JP-1 (1 Jan 11) JP-1 % Chg HSD (1 Feb 11) HSD (1 Jan 11) HSD % Chg LDO (1 Feb 11) LDO (1 Jan 11) LDO % Chg Fuel Oil (1 Feb 11) Fuel Oil (1 Jan 11)

51.74 49.41 4.72% 58.28 55.01 5.94% 58.51 55.24 5.92% 61.80 58.55 5.55% 55.32 53.46 3.48% 47,931 45,947

Wall Street weekly outlook

“Buy everything� sentiment continues NEW YORK: Investors will continue to ride the speediest rally in US stocks since the Great Depression despite growing concerns that the market is overbought and due for a correction.

Wall Street posted its third consecutive week of gains with the S&P 500 now up 6.8 per cent for the year and more than 20 per cent in just six months.

"I've never seen a market like this," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont, a m a r k e t watcher for 35 years.

"I'm showing, by every technical and quantitative standard I have, this market is at extreme levels. But no matter where we start out in the morning, buyers come in."

The trend of stocks starting off lower in the morning session but ending higher by the afternoon has been ongoing for weeks as investors view the small dips as reasons to buy.

But there is a perceptible level of anxiety in the market. Trading volume has been exceptionally low recently and the CBOE Volatility Index, Wall Street's so-called fear gauge, is up on the week despite the gains in stocks.

The index is usually inversely correlated to the S&P 500, and a rise in the VIX typically means a drop in the stock market.

The VIX, which ended at 16.43, up 4.7 per cent on the week, is still historically low but substantially higher than in recent months. That suggests investors see more

share gyrations ahead.

The driving force behind the rally is the money that poured into riskier assets like stocks in the last quarter of 2010 after the US Federal Reserve pledged to keep interest rates low.

"With so much momentum in the market, we are likely to see some sideways consolidation this week but nothing more than that," said Ryan Detrick, technical analyst at Schaeffer's Investment Research in Cincinnati, Ohio.

About 7.13 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq on

Friday, below last year's estimated daily average of 8.47 billion.

Stocks have been struggling to match last year's trading levels, hovering in the 7 billion range last week. On Thursday, the volume was the second-lowest of the year at 6.7 billion shares, and Monday's session was the lowest of the year with a mere 6.6 billion shares.

"This is a sign that the market is tired, and unless we see an uptick in this volume," the level of investor anxiety will not retreat, Detrick said.

US markets are closed on Monday for the Presidents Day holiday.

In US economic data, investors will get a sense of the state of economic growth from fourth-quarter 2010 gross domestic product data on Friday.

A batch of housing related data is due, including S&P Case-Shiller home prices on Tuesday, existing homes sales on Wednesday and new homes sales on Thursday.

Major retailers, including Wal-Mart Stores Inc and Macy's Inc, are expected to report their results this week. Of the 413 S&P 500 companies that have reported earnings so far, 71 per cent have exceed Wall Street estimates. -Reuters

KARACHI: Karachi Stock Exchange (KSE) witnessed some meek activities last week as Davis issue kept investors on the sidelines, however Margin Trading System (MTS) hopes closed it above 12,000 points.

The benchmark KSE 100Index grew by 97 points to close at 12,041 points, KSE 30-Index rose by 81 points to close at 11,616 points and KSE All Share Index edged up by 60 points to close at 8,356 points.

Index touched the highest and the lowest level of 12,142 and 11,875 points respectively during the week.

Sana Hanif, analyst at JS Global Capital said that political climate heated up in the outgoing week with growing diplomatic row between Pakistan and the US over the Raymond Davis issue. As a result, investors remained sidelined, evident from thin volumes, she added.

The average daily turnover reduced to 74.2 million shares which is around 21 million shares less as compared to a an average turnover of 95 million a week earlier.

Notable results that beat street expectation included Engro, PRL and HBL, whereas NML, DGKC, ICI and PKGS results came in below consensus estimates.

Kapco's earnings were at par with a higher than

expected payout of Rs3/share, she said.

The week started with some rangebound activities on Monday where index ended with a marginal gain of 2 points with low volumes as investors eyes were set on the outcome of KSE board of directors meeting rather than trade.

The news of draft Margin Trading System (MTS) approval by the KSE board was followed by the heavy bullish activities the next day as index gained 132 points to close above the psychological barrier of 12,000 points.

After a day off due to 12th Rabi-ul-Awwal, market saw dull performance on Thursday ending 16 points down with investor participation reducing to a 4month low. This trend continued on the last day as well with index staying in the negative zone and ending the day with a loss of 20 points.

"Due to country's deteriorating political ties with the US, majority of the investors were cautious and not willing to hold long positions" said Muniba Saeed, analyst at InvestCap. A total of around 297 million shares traded during the four on-days of the week which is 180 million less than a turnover of 477 million shares the previous week.

Out of total 432 active issues 199 declined, 156 advanced, and 77 issues remained unchanged.

Zain Saudi at 3-wk low after bids rejected DUBAI: Shares in Zain Saudi slump to three-week low after parent Zain rejects bids for its quarter-stake in the Saudi affiliate.

Zain Saudi dips 1.9 per cent to its lowest close since Feb. 2.

"If Zain was to accept a bid relative to today's market value, it would be looking at a significant loss on its investment, says Haissam Arabi, chief executive and fund manager at Gulfmena Alternative Investments.

"In that respect, it makes sense for Zain's board to reject any offers below that price, but from a bidder's perspective Zain is over-leveraged beyond justification, so that's probably why there's a big gap between bidders and the seller. It's a tug of war."

Kingdom Holding falls 3.3 per cent. Majority shareholder Prince Alwaleed bin Talal's said Kingdom's offer was "a reasonable one" and the investment firm had decided to stick to its original bid and not revise it.

Saudi Arabia's index falls 0.8 per cent to 6,334 points, its lowest close since Jan. 29.

Dubai's index makes its largest decline in three weeks and Abu Dhabi's benchmark also falls as regional unrest weighs on equities.

Emaar Properties falls 4.7 per cent, Arabtec loses 5.5 per cent and Drake & Scull drops 2.7 per cent.

Thousands of Bahraini antigovernment protesters camped overnight in a Manama square that has come to symbolise their cause, as calm returned ahead of talks on Sunday between the opposition and the crown prince.

The index falls 3.7 per cent to 1,536 points, its biggest drop since Jan. 30 as all 21 active stocks retreat.

Union Properties falls 6.3 per cent to a new all-time low, extending declines since its fourth-quarter loss increased five-fold.

Abu Dhabi's benchmark drops 1.9 per cent to 2,633 points, a three-week low.

Oman's index makes its largest decline in three weeks, but buyers target high dividend yield stocks and local fundamentals remain strong.-Reuters

Dhiyan

GREEN BUT UNDER PRESSURE Tariq Hussain Khan, COO United Capital Securities As market has bottomed out and Margin Trading System (MTS) is around the corner, moving forward, a sharp rally is expected and the index could go as high as 12,500 points.

Further, a stable economic situation in the country will also boost up the sentiments of the market. Investors are advised to start accumulating E&P, fertiliser, banks and cement stocks. Market would be green today.

Syed Faran Rizvi, Technical Analyst Invisor Securities Market is consolidating within 11,900-12,150 points. We are still foreseeing pressure and targeting the index towards 11,523 points. Investors are advised to sell but order stop loss as well if it closes above 12,150. MTS launch and revival in foreign interest would keep the market green.

Invest in oil, fertiliser, and banking stocks once they are in the oversold area. There would be pressure today.

6

Monday, February 21, 2011

Market

KSE 100 Index

Symbols

Volume

296,857,787

Value

12,639,679,634

Trades

256,502

Advanced Declined Unchanged Total

156 199 77 432

Current High Low Change

All Share Index

12,041.15 12,142.93 11,875.45 h97.81

Current High Low Change

OIL AND GAS

Paid up Cap(mn)

Company

2010 Div BR (%) (%)

Volume

371.98 358.00 364.62 -4.17

439157

401.00

315.80

300

Attock Refinery

853

4.68 114.06

118.28 112.02 114.95

0.89

2552324 146.90

112.02

-

9.42

-

-

Open

High

Low

Close Chg

Volume

Last 60 days High Low

RSI (14-day)

47.51

Total Assets (Rs in mn)

38,525.22

71.24

73.99

70.00

71.20 -0.04

357122

76.65

68.00

40

-

-

-

MA (10-day)

10.90

Total Equity (Rs in mn)

18,469.71

-

PNSC

1321

9.16

33.05

34.27

32.61

32.96 -0.09

7531

39.45

32.36

15

-

-

-a

MA (100-day)

10.63

Revenue (Rs in mn)

11,737.86

2156704

12.49

9.25

-

-

-

-

230636

141.65

117.00

31

-

-

-

National Refinery

800

283.70 262.20 270.08

2.89

469489

335.00

251.99

200

-

-

-

Pak Petroleum

11950

7.37 204.98

2365

7.29 312.30

350

- 100.37

1715

4.63 273.47

Pak OilfieldsSPOT Pak Refinery Limited P.S.O Shell Pakistan

685 10.61 207.27

206.99 200.30 201.56 -3.42 318.00 308.60 316.43 105.00

97.05

4.13

98.69 -1.68

278.90 270.10 273.55

0.08

212.30 206.00 206.90 -0.37

3421344 229.80 2864678 341.50

- 15.00 20B 50.00

197.70

90

264.00

255

81.13

-

1052283 317.79

268.00

80

- 50.00

-

43435

194.00

40

-

-

222.00

-

-

-

Performance of SR Automobile and Parts Index Open 1,260.30 Turnover 691,624 P/E (x) 4.37

-

-100.00 -

Company

Paid up Cap(mn)

PE

Open

High

High Low 1,265.35 1,217.98 Total cos Defaulter cos P/BV (x) ROE (%) 1.11 25.35 Low

Close Chg

Close 1,233.06 Listed cap 6,768.53 mn Payout (%) 20.42

Volume

Change % Change -27.25 -2.16 Market cap 200-Day High 45,860.00 mn Div Yield (%) 200-Day Low 4.67 -

Last 60 days High Low

CHEMICALS Performance of SR Chemicals Index Open 1,568.42 Turnover 79,044,997 P/E (x) 9.83 Company

Paid up Cap(mn)

High Low 1,628.01 1,549.60 Total cos Defaulter cos P/BV (x) ROE (%) 3.44 35.00

PE

Open

High

Low

Agritech Limited 3924 8.63 BOC (Pak) 250 12.58 Clariant Pak 273 7.23 Dawood Hercules 1203 12.05 Descon Chemical 1996 Descon Oxychem Ltd. 1020 Dewan Salman 3663 Dynea Pak 94 Engro Corporation Ltd 3277 12.05 Engro Polymer 6635 Fatima Fertilizer 22000 Fauji FertilizerSPOT 6785 9.43 Fauji Fert.Bin Qasim 9341 7.75 Ghani Gases Ltd 725 9.58 ICI Pakistan 1388 8.47 Ittehad Chemical 360 9.26 Lotte Pakistan 15142 5.88 Mandviwala 74 Nimir Ind Chemical 1106 Sitara Chem Ind 214 8.77 Sitara Peroxide 551 14.65

22.34 91.27 197.25 192.53 3.12 7.68 2.98 11.22 210.07 13.22 11.75 149.24 40.85 11.26 145.78 23.07 15.93 1.40 2.53 106.33 13.58

24.25 95.00 202.55 215.28 3.35 7.80 3.08 11.45 221.45 13.56 12.40 153.81 41.70 12.90 151.60 25.43 16.50 1.84 2.85 109.00 13.90

22.00 88.05 195.00 190.00 3.03 7.30 2.72 10.26 206.22 13.01 11.40 148.03 40.60 11.05 142.60 23.07 15.71 1.12 2.51 101.00 13.25

Close Chg 23.83 91.55 201.94 215.28 3.19 7.68 2.75 11.15 219.33 13.07 11.80 153.29 41.07 12.64 148.15 24.83 15.99 1.14 2.60 103.97 13.48

1.49 0.28 4.69 22.75 0.07 0.00 -0.23 -0.07 9.26 -0.15 0.05 4.05 0.22 1.38 2.37 1.76 0.06 -0.26 0.07 -2.36 -0.10

Close 1,617.33 Listed cap 52,251.88 mn Payout (%) 48.81

Last 60 days High Low

Volume 95117 7083 65916 209926 725327 986693 5170687 37731 11423714 1755872 4691803 5432292 10100670 956133 1518444 5031 31959268 50747 8954309 31993 267489

Change % Change 48.92 3.12 Market cap 200-Day High 354,706.02 mn Div Yield (%) 200-Day Low 4.97 -

26.73 103.94 213.30 215.28 3.74 9.25 4.24 11.98 222.80 15.87 12.64 157.90 43.99 13.07 158.49 36.00 16.80 2.45 3.17 139.40 14.54

20.95 79.99 152.00 165.73 2.37 6.90 1.52 9.15 180.90 12.51 9.16 110.00 33.80 11.00 134.01 23.07 11.70 1.01 1.45 101.00 12.70

2010 Div BR (%) (%) 15 135 25B 50 300B 15 60 20B 130 25B 52.5 175 5 5 25 5B -

2011 Div BR (%) (%) -

-

FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,051.92 Turnover 103,383 P/E (x) 5.36 Company

High Low 1,067.89 1,017.56 Total cos Defaulter cos P/BV (x) ROE (%) 0.40 7.47

Close 1,037.64 Listed cap 1,186.83 mn Payout (%) 25.28

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

707 411

6.69

15.95 38.00

16.49 38.79

14.95 37.20

15.85 -0.10 37.46 -0.54

41089 60661

Century Paper Security Paper

Change % Change -14.28 -1.36 Market cap 200-Day High 2,876.26 mn Div Yield (%) 200-Day Low 4.72 -

Last 60 days High Low 19.69 47.70

14.95 37.20

2010 Div BR (%) (%) 50

-

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

101 5.76 193.32 626 9.62 136.55 890 1.96 598 18.71 23.13 450 3.12 4.50 200 6.56 4.50 1428 - 10.90 823 10.21 62.79 150 4.41 23.25

Company

Paid up Cap(mn)

Adam Sugar AL-Noor Sugar XD Colony Sugar Mills Crescent Sugar Dewan Sugar Faran Sugar Habib Sugar J D WSugar Kohinoor Sugar Mirza Sugar XD Noon Pakistan Noon Sugar Quice Food S S Oil Sakrand Sugar Shahtaj Sugar Shak(RCPf)8.5 Perc Shakarganj Mills Tandlianwala Thal Industries UniLever Pakistan

58 186 990 214 365 217 750 539 109 141 48 165 107 57 223 120 346 695 1177 150 665

PE

Company

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Close 1,011.24 Listed cap 3,596.11 mn Payout (%) 30.91

Last 60 days High Low

Volume

2010 Div BR (%) (%)

Crescent Steel

565

2.97

28.90

29.60

28.12

28.39 -0.51

123912

31.00

24.01

30

- 10.00

-

675

-

2.35

2.55

2.25

2.37 0.02

84866

3.29

2.25

-

-

-

-

1199 17.88

50.10

50.96

46.50

49.17 -0.93

97309

62.20

46.50

55

20B

-

-

International Ind XD

Company

Paid up Cap(mn)

Diamond Ind Pak Elektron Tariq Glass Ind

90 1219 231

PE 3.38 2.18

Company

Paid up Cap(mn)

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

PE

2.82

High

-

866

6.49

50.43

52.38

48.60

65.45

48.60

-

18.60

18.80

18.00

18.03 -0.57

39929

24.16

18.00

9.90

10.50

9.55

10.00 0.10

21715

12.59

9.55

2.00

1.50

1.73 -0.11

948

-

Dewan Cement

3891

-

1.90

2.15

1.84

1.89 -0.01

3651 10.57

27.00

27.40

24.39

24.42 -2.58

EMCO Ind Fecto Cement Flying Cement Ltd Frontier Ceramics Gharibwal Cement Haydery Const Kohat Cement

2.00 0.00

79917

3.98

17000

37108

2.73

2.49

1.50 1.25

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

-

2011 Div BR (%) (%) -

-

- 122R

-

-

-

-

-

-

-

-

-

9006

3.49

381083

3.10

1.65

-

-

-

-

11250754 32.30

24.39

-

20R

-

20R

-

350

2.81

2.88

3.75

2.35

2.36 -0.52

8052

4.00

2.15

-

-

-

-

6933

6.26

4.49

4.67

4.40

4.51 0.02

713240

5.55

4.40

-

-

-

92R

502

3.65

7.00

7.25

7.00

7.00 0.00

7320

8.00

6.95

-

-

-

-

1760

-

1.65

1.95

1.62

1.68 0.03

65337

2.25

1.60

-

-

-

-

77

-

2.93

3.40

1.45

2.01 -0.92

20609

3.40

1.29

-

-

-

-

4003

-

6.85

7.60

6.05

7.12 0.27

5439

9.19

4.13

-

-

-

-

32 1288

Lafarge Pakistan Cmt.

1.25

51.27 0.84

DG Khan Cement Ltd Fauji Cement

2.00

2.80 -0.02

Volume

182

1.84

2.73

Close Chg

Last 60 days High Low

956 41.67

2.00

3.24

Low

Change % Change -19.73 -2.20 Market cap 200-Day High 63,642.26 mn Div Yield (%) 200-Day Low 3.22 -

1828

982 13.31

Dandot Cement

Open

Close 877.51 Listed cap 54,792.74 mn Payout (%) 19.04

13126

-

0.61 6.00

0.90 6.15

0.51 6.00

0.64 0.03 6.01 0.01

23636

0.99

20891

0.25

7.63

5.99

-

-

-

-

-

3.06

3.21

2.98

3.06 0.00

1522719

3.88

2.95

-

Lucky Cement

3234

6.08

67.67

70.00

66.51

67.62 -0.05

836675

78.44

66.00

40

-

-

-

5261

1.18

2.57

2.67

2.20

2.54 -0.03

480795

3.30

2.20

-

-

-

-

Pioneer Cement

6.48

5.90

6.30 0.04

33666

8.15

5.90

-

-

-

-

Maple Leaf Cement

6.26

-

-

-

-

2228

-

Safe Mix Concrete

200

-

6.50

7.20

6.20

6.54 0.04

8599

7.95

5.30

-

-

-

-

Thatta Cement

798 452.50

18.34

18.10

16.37

18.10 -0.24

23210

20.20

16.37

-

50R

-

-

-

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 982.03 Turnover 804,688 P/E (x) 2.69 Company

Paid up Cap(mn)

Cherat Papersack ECOPACK Ltd Ghani Glass MACPAC Films Merit Pack Packages Ltd

PE

Open

115 2.77 60.41 230 2.60 1067 4.85 52.32 389 3.75 47 16.86 32.06 844 - 120.54

High

High Low 1,004.31 942.69 Total cos Defaulter cos P/BV (x) ROE (%) 1.18 43.91 Low

Close Chg

63.50 57.39 60.43 2.77 2.12 2.56 53.89 51.12 52.74 4.00 3.25 4.00 32.60 29.35 30.34 130.75 118.00 126.68

0.02 -0.04 0.42 0.25 -1.72 6.14

Close 962.26 Listed cap 3,043.31 mn Payout (%) 15.55

Volume 226013 24939 17407 26000 37245 366891

Change % Change -19.77 -2.01 Market cap 200-Day High 36,699.15 mn Div Yield (%) 200-Day Low 5.78 -

Last 60 days High Low 83.23 3.30 56.45 4.14 33.80 143.00

57.39 1.82 45.30 2.43 17.10 103.52

2010 Div BR (%) (%) 20 25 32.5

25B 10B -

2011 Div BR (%) (%) -

50R -

Company

Paid up Cap(mn)

Ados Pak AL-Ghazi Tractor Dewan Auto Engineering Ghandhara Ind Millat Tractors XD

66 215 214 213 366

PE

Open

1.01 15.05 4.96 229.07 1.04 9.73 10.59 7.58 538.28

High

Low

Volume

16.05 14.10 15.71 0.66 235.00 220.00 220.38 -8.69 1.37 0.80 1.10 0.06 11.37 10.01 10.51 -0.08 543.00 491.00 492.43 -45.85

21707 43228 35065 30273 144950

Change % Change -37.78 -2.42 Market cap 200-Day High 31,534.71 mn Div Yield (%) 200-Day Low 16.70 -

Last 60 days High Low 18.20 244.95 2.40 13.50 568.40

2011 Div BR (%) (%) -

-

Low

Close Chg

Close 1,916.63 Listed cap 11,335.33 mn Payout (%) 30.57

Volume

Change % Change 133.57 7.49 Market cap 200-Day High 288,117.86 mn Div Yield (%) 200-Day Low 0.63 -

Last 60 days High Low

30100 20.50 14.10 34176 54.00 40.85 64222 5.70 2.40 23080 7.15 5.00 149016 5.59 1.60 5628 21.73 17.25 145879 36.50 21.35 18664 92.50 68.00 6254 6.14 2.45 23600 7.18 3.85 11328 27.30 21.88 5193 14.45 9.00 47500 4.00 2.05 8000 3.70 2.50 19500 3.90 1.90 11627 100.26 50.93 5147143 4.80 2.50 5125 7.88 4.10 11178 44.06 31.50 5356 98.70 44.40 5530 4818.00 3916.04

2010 Div BR (%) (%) 25 50 25 25 25B 7010B 12.5R 10 12 15 492 -

2011 Div BR (%) (%) -

-

10.11 13.36 19.20

High 11.11 13.87 19.95

High Low 1,089.43 1,018.90 Total cos Defaulter cos P/BV (x) ROE (%) 0.25 10.64 Low 9.04 13.01 18.02

Close Chg 10.00 -0.11 13.40 0.04 18.21 -0.99

Close 1,050.36 Listed cap 3,763.71 mn Payout (%) 6.27

14.10 207.50 0.21 10.01 489.10

2010 Div BR (%) (%) 400 650

2011 Div BR (%) (%)

25B325.00

-

Profit after Taxation

60.53

2nd Support

10.25

EPS 09 (Rs)

0.003

1st Resistance

10.80

Book value / share (Rs)

37.85

2nd Resistance

10.95

PE 10 E (x)

Pivot

10.60

PBV (x)

2,424.42

0.28

ANL closed up 0.36 at 10.68. Volume was 64 per cent below average (consolidating) and Bollinger Bands were 2 per cent wider than normal.

The company's loss after taxation stood at Rs488.179 million which translates into a Loss Per Share of Rs1.12 for the nine months of current calendar year (9MCY10).

ANL is currently 4.4 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of ANL at a relatively equal pace. Trend forecasting oscillators are currently bearish on ANL.

Nimir Industrial Chemicals Ltd

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

59.19

Total Assets (Rs in mn)

MA (10-day)

2.41

Total Equity (Rs in mn)

MA (100-day)

1.70

Revenue (Rs in mn)

MA (200-day)

1.71

Interest Expense

1st Support

2.49

Profit after Taxation

2nd Support

2.43

EPS 10 (Rs)

1st Resistance

2.66

Book value / share (Rs)

2nd Resistance

2.77

PE 11 E (x)

Pivot

2.60

PBV (x)

1,694.64 118.91 1,742.80 51.71 4.57 0.021 0.54 4.84

NICL closed up 0.07 at 2.60. Volume was 37 per cent below average and Bollinger Bands were 218 per cent wider than normal. The company's loss after taxation stood at Rs2.377 million which translates into a Loss Per Share of Rs0.01 for the 1st quarter of current fiscal year (1QFY11).

NICL is currently 49.8 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 volume flowing into and out of NICL at a relatively equal pace. Trend forecasting oscillators are currently bullish on NICL.

Pakistan Int Airline Corp Ltd

Volume 8236 216996 154351

Change % Change -12.41 -1.17 Market cap 200-Day High 5,072.00 mn Div Yield (%) 200-Day Low 2.63 -

Last 60 days High Low 15.84 15.88 24.00

7.55 13.00 15.90

2010 Div BR (%) (%) 17.5

10B -

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

Company

Paid up Cap(mn)

Amtex Limited Azam Textile Azgard Nine Bannu Woolen XD Chenab Limited Chenab Ltd Pref Colony Mills Ltd Crescent Fibres Ltd Crescent Textile D S Ind Ltd Data Textile Dawood Lawrencepur Dewan Mushtaq Textile Ellcot Spinning Gadoon Textile XD Gul Ahmed Textile Gulshan Spinning Hajra Textile Hira Textile Mills Ltd. Ibrahim Fibres Ideal Spinning Idrees Textile Janana D Mal Kohinoor Ind Kohinoor Textile Mian Textile Moonlite (PAK) Mukhtar Textile Nagina Cotton Nishat (Chunian) Nishat Mills Pak Synthetic Ravi Textile Reliance Weaving Rupali Poly Saif Textile Salfi Textile Sally Textile Sargodha Spinning Saritow Spinning Service Ind Shadab Textile Shahpur Textile Shahtaj Textile Taj Textile Tata Textile Thal Limited Treet Corp Tri-Star Poly Zil Limited

2594 133 4493 76 1150 800 2442 124 492 600 99 514 34 110 234 635 222 138 716 3105 99 180 43 303 1455 221 22 145 187 1614 3516 560 250 308 341 264 33 88 312 133 120 30 140 97 334 173 307 418 215 53

PE

Open

8.48 3.73 0.28 2.00 - 10.32 0.50 13.99 2.70 2.99 3.69 2.46 0.70 14.10 3.26 17.72 1.60 0.84 51.74 36.51 0.13 4.49 0.64 22.45 0.80 75.50 4.17 29.05 1.00 7.26 0.50 0.69 3.71 3.87 50.20 0.85 8.10 4.00 3.15 0.23 13.51 1.43 3.62 5.00 0.43 - 17.00 0.44 0.78 16.24 2.18 25.45 5.58 63.91 4.46 12.55 1.27 0.71 9.58 5.08 40.01 0.48 6.04 0.33 71.01 0.23 4.25 0.70 4.04 0.25 1.55 7.22 212.00 0.39 12.89 0.36 0.37 - 19.05 0.21 0.39 41.00 4.96 118.10 8.55 53.89 0.56 5.61 69.78

High

High Low 1,013.07 982.57 Total cos Defaulter cos P/BV (x) ROE (%) 0.61 8.64 Low

Close Chg

4.05 3.70 3.73 0.00 2.55 2.00 2.00 0.00 10.90 10.30 10.68 0.36 14.50 13.55 14.10 0.11 2.90 2.52 2.60 -0.10 3.00 2.95 2.95 -0.04 2.95 2.16 2.36 -0.10 15.10 13.15 15.06 0.96 17.94 15.95 16.93 -0.79 1.75 1.55 1.62 0.02 1.10 0.08 0.28 -0.56 43.98 37.00 43.98 7.47 5.50 3.30 4.08 -0.41 23.08 20.92 21.00 -1.45 75.50 71.51 73.20 -2.30 30.46 29.00 29.01 -0.04 8.26 7.50 8.26 1.00 0.84 0.35 0.59 0.09 3.99 3.60 3.67 -0.04 51.44 47.70 49.27 -0.93 9.95 7.10 9.95 1.85 3.80 3.05 3.68 0.53 15.02 13.51 14.03 0.52 1.68 1.42 1.42 -0.01 5.24 4.50 5.07 0.07 0.59 0.45 0.59 0.16 17.50 16.00 17.25 0.25 0.81 0.28 0.30 -0.14 16.11 14.51 15.25 -0.99 28.04 25.12 26.26 0.81 65.70 58.80 62.84 -1.07 13.89 12.30 13.20 0.65 1.38 1.00 1.13 -0.14 11.39 9.62 10.21 0.63 41.90 39.00 40.43 0.42 6.14 5.50 6.00 -0.04 74.56 70.85 72.99 1.98 4.68 3.63 4.67 0.42 4.00 2.50 3.59 -0.45 2.29 1.50 1.51 -0.04 219.50 210.00 210.79 -1.21 14.84 12.00 13.84 0.95 0.55 0.37 0.26 -0.11 20.99 19.90 20.10 1.05 0.25 0.25 0.25 0.04 42.93 38.95 40.77 -0.23 120.88 112.75 116.02 -2.08 56.50 52.35 53.72 -0.17 0.99 0.33 0.51 -0.05 84.35 68.11 83.80 14.02

Close 1,004.16 Listed cap 47,070.70 mn Payout (%) 16.68

Volume

Change % Change 19.00 1.93 Market cap 200-Day High 136,054.15 mn Div Yield (%) 200-Day Low 2.35 -

Last 60 days High Low

1331540 5.28 9249 3.00 9026537 12.84 20710 15.10 104001 3.76 1067868 3.99 37623 2.97 9702 15.10 10109 23.99 77166 2.10 22036 1.10 73017 47.00 39422 8.90 31904 23.08 9026 77.40 125473 33.19 36843 8.50 28710 1.10 60980 4.47 138780 55.00 7576 9.99 33350 3.90 5490 18.00 92338 2.00 52692 5.95 7000 0.75 5018 17.50 5073 0.90 10512 17.10 19492277 28.04 17684533 71.89 460432 14.45 420438 1.98 122250 11.39 37338 42.70 10489 6.85 20450 74.74 5511 4.68 12936 4.45 10003 2.89 10270 276.50 17159 15.09 6020 0.70 10701 20.99 8500 0.56 11965 42.93 39154 132.00 260667 63.30 7750 1.45 253796 84.35

2010 Div BR (%) (%)

3.65 30 1.32 7.5 9.20 12.60 20 2.52 1.72 2.06 10.00 10 15.95 15 1.55 0.08 35.00 5 2.90 18.75 35 47.00 70 24.00 12.5 6.30 10 0.31 3.31 10 36.61 20 3.00 2.70 10 13.40 0.75 4.50 0.25 4.50 0.14 14.51 20SD 21.15 15 56.25 25 6.21 0.65 8.50 25SD 35.00 40 3.90 48.00 25 3.61 10 1.51 5 1.00 210.00 11.00 10 0.20 16.35 45 0.08 30.00 25 98.56 80 52.35 0.33 45.50 35

20B 45R 20B -

2011 Div BR (%) (%) -

-

PHARMA AND BIO TECH Performance of SR Pharma and Bio Tech Index

Close 1,521.25 Listed cap 1,336.62 mn Payout (%) 131.49

Close Chg

Open

Open 985.16 Turnover 51,447,668 P/E (x) 7.10

Open 892.42 Turnover 151,979 P/E (x) 6.79

Performance of SR Industrial Engineering Index High Low 1,576.58 1,513.90 Total cos Defaulter cos P/BV (x) ROE (%) 2.99 38.02

20B 20B

Performance of SR Personal Goods Index

INDUSTRIAL ENGINEERING Open 1,559.03 Turnover 279,342 P/E (x) 7.87

100 20 10

PERSONAL GOODS

CONSTRUCTION AND MATERIALS High Low 921.09 862.77 Total cos Defaulter cos P/BV (x) ROE (%) 0.42 7.10

High

Open 1,062.77 Turnover 384,098 P/E (x) 2.38

Performance of SR Construction and Materials Index Open 897.24 Turnover 15,610,681 P/E (x) 5.91

2010 Div BR (%) (%)

Interest Expense

10.45

HOUSEHOLD GOODS

2011 Div BR (%) (%)

Dost Steels Ltd

156.03 100.52 1.40 21.00 4.26 4.01 10.60 61.60 18.80

11.18

1st Support

Performance of SR Household Goods Index

-

Change % Change 0.14 0.01 Market cap 200-Day High 9,564.47 mn Div Yield (%) 200-Day Low 9.86 -

Open

High Low 1,938.44 1,741.15 Total cos Defaulter cos P/BV (x) ROE (%) 14.76 30.30

4.32 15.39 15.39 14.41 14.50 -0.89 1.18 42.97 47.24 41.16 47.24 4.27 8.25 2.94 3.75 2.50 3.30 0.36 0.62 6.26 7.00 6.15 6.15 -0.11 3.00 3.99 3.00 3.45 0.45 1.46 17.96 18.00 17.40 18.00 0.04 8.74 21.99 22.55 21.65 22.03 0.04 1.25 72.84 74.65 70.50 70.54 -2.30 3.21 4.30 2.45 4.26 1.05 4.20 4.23 3.85 4.23 0.03 3.86 23.55 27.00 23.00 26.99 3.44 1.15 10.86 11.50 10.50 10.75 -0.11 7.18 3.56 3.30 3.10 3.16 -0.40 0.24 2.95 2.75 2.65 2.75 -0.20 2.16 2.16 1.90 1.90 -0.26 4.29 61.09 65.00 58.04 64.01 2.92 3.80 4.80 2.89 3.75 -0.05 0.34 4.65 5.55 4.10 4.76 0.11 15.00 41.97 44.06 41.00 42.00 0.03 2.07 56.50 59.30 53.68 59.20 2.70 19.02 4145.50 4679.08 4005.01 4679.08 533.58

Performance of SR Industrial Metals and Mining Index High Low 1,046.91 982.78 Total cos Defaulter cos P/BV (x) ROE (%) 1.04 33.10

12075 205.00 13037 143.80 336281 2.89 57967 26.74 8739 5.36 104646 5.49 45004 12.87 82169 77.90 24932 24.00

MA (200-day)

FOOD PRODUCERS Open 1,783.06 Turnover 5,820,949 P/E (x) 48.70

INDUSTRIAL METALS AND MINING Open 1,011.09 Turnover 328,318 P/E (x) 3.13

196.49 192.00 192.90 -0.42 139.90 132.05 138.56 2.01 2.17 1.84 1.90 -0.06 23.89 21.70 21.70 -1.43 4.60 4.26 4.49 -0.01 4.50 4.15 4.20 -0.30 11.23 10.70 10.75 -0.15 65.67 61.60 64.09 1.30 23.95 22.50 23.64 0.39

Technical Analysis

Performance of SR Food Producers Index

2011 Div BR (%) (%) -

2011 Div BR (%) (%)

AUTOMOBILE AND PARTS

-

122.22

375721

Company

2010 Div BR (%) (%)

Fundamental Highlights As on Dec 31, 2009

PE 6.85

0.14

55

Change % Change -0.70 -0.10 Market cap 200-Day High 12,308.06 mn Div Yield (%) 200-Day Low 2.06 -

1092

0.02

161.27

Close 719.11 Listed cap 3,242.17 mn Payout (%) 11.08

Paid up Cap(mn)

9.44

1145835 185.00

High Low 746.89 708.85 Total cos Defaulter cos P/BV (x) ROE (%) 1.38 25.53

Pak Int Cont.Terminal

127.50 120.10 121.39

170.44 164.00 165.99 -0.84

Open 719.80 Turnover 364,653 P/E (x) 5.39

-

735 16.45 121.25

Oil & Gas Development 43009 11.23 166.83

9.25

2011 Div BR (%) (%)

20B115.00

Mari Gas Company

5.60 267.19

9.95

Low

Last 60 days High Low

Close Chg

6.59 368.79

-

High

Azgard Nine Limited

Performance of SR Industrial Transportation Index

Close Change % Change 1,507.52 -6.00 -0.40 Listed cap Market cap 200-Day High 65,194.15 mn 1,164,049.14 mn Payout (%) Div Yield (%) 200-Day Low 55.94 5.09 -

691

3921

Open

High Low 1,539.93 1,493.38 Total cos Defaulter cos P/BV (x) ROE (%) 3.58 32.54

Attock PetroleumSPOT

BYCO Petroleum

PE

8,356.85 8,425.66 8,248.81 h60.72

Alert ! Unusual Movements

11,616.66 11,762.43 11,458.46 h81.33

INDUSTRIAL TRANSPORTATION

Performance of SR Oil and Gas Index Open 1,513.52 Turnover 12,599,804 P/E (x) 11.00

KSE 30 Index Current High Low Change

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

Paid up Cap(mn) 979 250 1707 165 200 96 306

PE

Open

8.36 94.08 6.83 91.11 13.13 73.06 7.44 26.16 7.18 9.24 6.59 161.98 5.49 60.00

High

High Low 908.71 872.55 Total cos Defaulter cos P/BV (x) ROE (%) 1.51 22.31 Low

Close Chg

95.60 90.30 95.40 93.99 90.10 90.39 74.90 71.36 73.00 27.49 25.56 26.86 9.19 8.20 8.90 169.85 152.00 153.00 62.75 58.50 61.01

1.32 -0.72 -0.06 0.70 -0.34 -8.98 1.01

Close 895.15 Listed cap 3,904.20 mn Payout (%) 44.54

Volume 29811 5767 8640 47375 8455 31140 20459

Change % Change 2.73 0.31 Market cap 200-Day High 29,878.48 mn Div Yield (%) 200-Day Low 6.56 -

Last 60 days High Low 112.50 98.00 89.98 30.48 9.99 174.00 69.00

90.30 83.00 70.13 24.40 7.16 116.00 58.50

2010 Div BR (%) (%) 20 100 30

20B -

2011 Div BR (%) (%) -

-

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

55.99

Total Assets (Rs in mn)

160,013.18

MA (10-day)

2.77

Total Equity (Rs in mn)

(20,772.84)

MA (100-day)

2.34

Revenue (Rs in mn)

94,563.77

MA (200-day)

2.45

Interest Expense

1st Support

2.61

Loss after Taxation

2nd Support

2.51

EPS 09 (Rs)

(2.72)

1st Resistance

2.95

Book value / share (Rs)

9,243.77

(8.92)

2nd Resistance

3.19

PE 10 E (x)

Pivot

2.85

PBV (x)

(5,822.43)

(0.31)

PIAA closed up 0.28 at 2.78. Volume was 20 per cent above average and Bollinger Bands were 192 per cent wider than normal. The company's loss after taxation stood at Rs11.693 billion which translates into a Loss Per Share of Rs4.79 for the nine months of current calendar year (9MCY10).

PIAA is currently 13.6 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 moderate flows of volume into PIAA (mildly bullish).

Trend forecasting oscillators are currently bullish on PIAA.

Dewan Salman Fibre Limited

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

40.19

Total Assets (Rs in mn)

15,343.38

MA (10-day)

2.98

Total Equity (Rs in mn)

(7,218.97)

MA (100-day)

2.37

Revenue (Rs in mn)

MA (200-day)

2.05

Interest Expense

1st Support

2.62

Loss after Taxation

2nd Support

2.54

EPS 10 (Rs)

(4.176)

1st Resistance

2.88

Book value / share (Rs)

(19.71)

2nd Resistance

3.06

PE 11 E (x)

Pivot

2.80

PBV (x)

137.50 125.73 (1,529.67)

(0.14)

DSFL closed down -0.23 at 2.75. Volume was 18 per cent below average and Bollinger Bands were 43 per cent narrower than normal. The company's loss after taxation stood at Rs246.014 million which translates into a Loss Per Share of Rs0.67 for the 1st quarter of current fiscal year (1QFY11).

DSFL is currently 34.5 per cent above its 200-day moving average and is displaying a downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of DSFL at a relatively equal pace. Trend forecasting oscillators are currently bearish on DSFL.

BOOK CLOSURES Company

From

To

Mehran Sugar Mills Frontier Ceramics Gharibwal Cement Ansari Sugar Mills Tandlianwala Sugar Mills Zeal Pak Cement Descon Oxychem # Int. Industries # Pakistan Oilfields Namco Income Fund Fauji Fertilizer (Tfc) Nib Bank Attock Petroleum (Tfc) Searle Pakistan Cherat Papersack Kohinoor Energy Pakistan State Oil Pakistan Petroleum Pakistan Petroleum (Pref) Central Insurance # Colgate - Palmolive # Picic Growth Fund Picic Invt. Fund Picic Energy Fund Shabbir Tiles & Ceramics # Pioneer Cement Tariq Glass Bank Al-Habib Husein Industries # Crescent Steel Allied Bank Ltd.

21-Feb 21-Feb 21-Feb 21-Feb 21-Feb 21-Feb 22-Feb 22-Feb 23-Feb 23-Feb 24-Feb 24-Feb 01-Mar 02-Mar 03-Mar 03-Mar 03-Mar 03-Mar 04-Mar 05-Mar 05-Mar 05-Mar 06-Mar 06-Mar 07-Mar 07-Mar 07-Mar 09-Mar 10-Mar

28-Feb 28-Feb 28-Feb 28-Feb 28-Feb 28-Feb 01-Mar 23-Feb 01-Mar 05-Mar 04-Mar 09-Mar 11-Mar 08-Mar 0-Mar* 09-Mar 09-Mar 10-Mar 10-Mar 12-Mar 12-Mar 12-Mar 12-Mar 12-Mar 13-Mar 17-Mar 12-Mar 15-Mar 16-Mar

D/B/R

INDICATIONS # Extraordinary General Meeting

Spot AGM/Date

7.5(I) 10-Feb 100(I) 11-Feb 35(F) 25(B) 14-Feb 115(I) 15-Feb 50(R) 10(I) 50(I) 50(I) 23-Feb 30(I) 12.50(I) 7.5(I) 10(I) 35.23Pref(R) 200(R) 25-Feb 20(F) 20(B) 10(I) 01-Mar 20(F) 10(B) -

28-Feb 28-Feb 28-Feb 28-Feb 28-Feb 28-Feb 24-Feb 01-Mar 10-Mar 10-Mar 12-Mar 17-Mar 12-Mar 16-Mar

7

Monday, February 21, 2011 Ask Gen Insurance

FIXED LINE TELECOMMUNICATION

Atlas Insurance

Performance of SR Fixed Line Telecommunication Index Open 1,062.26 Turnover 5,999,509 P/E (x) 5.91 Paid up Cap(mn)

Company

High Low 1,109.21 1,047.15 Total cos Defaulter cos P/BV (x) ROE (%) 0.76 12.84

PE

Open

High

Low

Close Chg

Pak Datacom 78 4.44 Pakistan Telecomm Co A 37740 12.49 Telecard 3000 0.60 WorldCall Tele 8606 Wateen Telecom Ltd 6175 -

78.50 17.95 2.06 2.57 3.40

78.50 18.77 2.19 2.69 3.50

71.25 17.70 1.99 2.50 3.35

72.00 18.73 2.02 2.62 3.39

-6.50 0.78 -0.04 0.05 -0.01

Close 1,101.74 Listed cap 50,077.79 mn Payout (%) 62.56

Volume 7361 4126675 438143 1427330 421999

204

Last 60 days High Low

2010 Div BR (%) (%)

82.99 20.65 2.67 3.45 4.65

80 17.5 1 -

71.25 17.70 1.99 2.50 3.35

369

Central Insurance XB

Change % Change 39.48 3.72 Market cap 200-Day High 76,205.49 mn Div Yield (%) 200-Day Low 10.59 2011 Div BR (%) (%)

-

-

-

6.67

Century Insurance EFU General Insurance Habib Insurance IGI Insurance New Jub Insurance Pak Reinsurance

5.90

Paid up Cap(mn)

Company

Altern Energy Genertech Hub Power Japan Power KESC Kot Addu Power Nishat Chunian Power Ltd Nishat Power Ltd Sitara Energy Ltd Southern Electric Tri-star Power XD

PE

Open

High

Low

3426 22.68 198 11572 6.94 1560 7932 8803 5.65 3673 3.49 3541 2.44 191 3.32 1367 150 -

10.99 0.66 37.11 1.57 2.70 41.49 16.20 16.79 17.52 2.01 1.00

10.99 0.83 38.25 1.70 2.88 44.50 16.55 17.01 18.49 2.08 0.98

9.70 0.65 37.00 1.49 2.65 41.00 15.50 15.90 17.45 1.91 0.83

Close 1,309.00 Listed cap 95,369.29 mn Payout (%) 104.13

Change % Change 26.56 2.07 Market cap 200-Day High 108,046.76 mn Div Yield (%) 200-Day Low 7.11 -

Close Chg

Volume

Last 60 days High Low

9.98 0.71 37.89 1.57 2.73 43.98 15.93 16.68 17.79 1.94 0.85

18006 282670 1652261 404930 1403808 1791341 9484290 7716172 34984 421522 44760

11.45 1.18 41.20 2.15 3.55 45.85 18.01 18.70 19.35 2.80 1.49

-1.01 0.05 0.78 0.00 0.03 2.49 -0.27 -0.11 0.27 -0.07 -0.15

9.00 0.65 36.00 1.49 2.16 39.31 13.32 14.25 16.50 1.90 0.70

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

2011 Div BR (%) (%)

7.8R - 30.00 -

-

Company Sui North Gas Sui South Gas

Change % Change 9.22 0.58 Market cap 200-Day High 35,228.55 mn Div Yield (%) 200-Day Low 6.56 -

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

5491 8390

7.49 3.84

24.56 25.85

25.69 26.45

24.15 24.81

25.18 0.62 25.51 -0.34

990825 2844546

29.39 27.90

24.15 19.95

2010 Div BR (%) (%) 20 15

2011 Div BR (%) (%)

25B

-

-

BANKS Performance of SR Banks Index Open 1,106.15 Turnover 41,417,177 P/E (x) 8.03 Paid up Cap(mn)

Company

PE

Open

Allied Bank Limited 7821 6.43 68.79 Askari Bank 6427 7.63 15.98 Bank Alfalah 13492 13.50 10.78 Bank AL-Habib 7322 7.42 35.73 Bank Of Khyber 5004 5.48 4.10 Bank Of Punjab 5288 8.05 BankIslami Pak 5280 880.00 3.70 Faysal Bank 7327 4.39 13.74 Habib Bank Ltd 10019 7.69 122.15 Habib Metropolitan Bank 8732 7.73 25.00 JS Bank Ltd 8150 2.64 KASB Bank Ltd 9509 1.61 MCB Bank Ltd 7602 9.70 207.65 Meezan Bank 6983 7.58 18.15 Mybank Ltd 5304 2.55 National Bank 13455 6.46 74.13 NIB Bank 40437 2.62 Samba Bank 14335 1.81 Silkbank Ltd 26716 2.43 Soneri Bank 6023 6.70 Stand Chart Bank 38716 11.08 7.11 Summit Bank Ltd 7251 3.46 United Bank Ltd 12242 7.39 63.78

High

Low

Close Chg

70.50 67.70 68.15 -0.64 16.24 15.60 16.03 0.05 10.95 10.21 10.53 -0.25 37.38 35.00 36.50 0.77 4.50 4.00 4.11 0.01 8.23 7.73 7.79 -0.26 3.90 3.06 3.52 -0.18 14.22 13.50 13.60 -0.14 127.00 121.00 123.16 1.01 26.50 23.52 25.29 0.29 2.92 2.59 2.75 0.11 1.75 1.56 1.62 0.01 216.40 207.10 215.38 7.73 18.50 17.81 17.88 -0.27 2.99 2.10 2.60 0.05 75.64 73.22 73.97 -0.16 2.72 2.53 2.58 -0.04 2.09 1.75 1.78 -0.03 2.48 2.30 2.39 -0.04 7.00 6.52 6.57 -0.13 7.80 7.00 7.20 0.09 3.68 3.36 3.44 -0.02 65.25 62.10 62.90 -0.88

Volume

Change % Change 14.36 1.30 Market cap 200-Day High 679,855.49 mn Div Yield (%) 200-Day Low 5.04 -

Last 60 days High Low

755976 74.00 1446159 19.25 1437731 11.99 3288677 39.49 5426588 4.70 6389735 10.40 250241 4.50 82737 16.47 1654187 128.97 81431 29.28 1907565 2.95 770067 2.80 2017280 250.48 326803 20.30 1033674 3.40 6241881 80.61 1490686 3.35 129823 2.17 4632316 3.05 177984 8.48 33001 9.04 440126 4.63 1842613 70.65

59.00 15.60 9.50 33.00 3.65 7.73 3.00 13.50 102.55 22.63 2.30 1.49 203.29 14.90 1.90 65.31 2.53 1.70 2.30 6.52 7.00 2.77 58.00

2010 Div BR (%) (%)

2011 Div BR (%) (%)

40 10B 20 20B - 20B 65 10B - 66R 85 10B - 15B -63.46R 10 -

-

-

NON LIFE INSURANCE Performance of SR Non Life Insurance Index Open 758.48 Turnover 1,908,610 P/E (x) 12.60 Paid up Cap(mn)

Company Adamjee Insurance

High Low 775.58 744.32 Total cos Defaulter cos P/BV (x) ROE (%) 0.66 5.20

Close 759.22 Listed cap 11,111.34 mn Payout (%) 79.54

Change % Change 0.74 0.10 Market cap 200-Day High 47,415.51 mn Div Yield (%) 200-Day Low 6.31 -

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1237 24.26

84.45

86.49

82.00

83.69 -0.76

727392

96.40

79.25

2010 Div BR (%) (%) 10

2011 Div BR (%) (%)

-

-

-

25R

-

34.33

-

-

67.51

70.61

61.30

70.61 3.10

13113

57.80

10

10B

-

-

9.58

10.73

9.99

10.46 0.88

42166

11.99

9.50

-

-

-

-

-

38.65

39.99

37.50

38.05 -0.60

111071

47.90

37.50

-

-

-

-

400

3.19

718

83.00

-

-

UPTO 5000 VOLUME

-

8.02

13.39 0.39

40.00

-

6.54

12.32

22970

10.00

-

13.00

13.47

21042

15.50

12.00

-

-

8.58

96.81

102.44

95.00

99.88 3.07

171304

102.44

81.10

30

55B

-

-

791 15.88

58.81

59.89

57.00

58.91 0.10

5907

61.80

56.00

-

-

-

-

3000 42.79

16.72

17.40

16.50

16.69 -0.03

735524

19.40

15.70

-

-

-

-

-

-

-

-

Symbols SHSML SGLL COTT BCML BUXL BAPL SKFL HSPI SHCI CJPL KOHE KOSM HAL AGIL GAMON IFSL FHBM UNIM KML PAKT ADMM RICL BGL CWSM KSBP MSOT DINT SANE PMI FECM GAEL DMTX IDYM WAHN INDU SHCM PGCL GRYL PMRS FZCM STCL JUBS TRIBL GATI DSML LIBM JOPP FNEL PPP HUSS NATF KOHP SURC MFFL ALQT CHAS PAKMI GRAYS RCML BTL HUSI SPLC RMPL SGPL MEHT GUTM LPGL BAWS BILF SNAI BROT ALICO GOEM PKGI MODAM BATA PECO FECS AKDCL MFTM SING NESTLE FTSM UVIC HWQS ISIL SCL PSEL UNIC FCONM COLG QUAT FNBM NBF SCLL SMTM GUSM MIRKS FUDLM EXIDE SIEM BCL AGSML MRNS YOUW OTSU DADX BWHL ATEL SFL GLPL PNGRS TSBL HINO OLSM ESBL CLOV SZTM BIFO AABS JVDC KOHTM FANM PASM ISTM KSTM UPFL TRSM PRWM ZTL TSMF SHNI WYETH NMBL

-

350

-

8.99

9.50

8.30

9.50 0.51

6620

10.75

6.01

303

5.86

11.08

11.20

10.13

10.85 -0.23

29256

12.93

9.65

-

-

-

-

Silver Star Insurance

253

4.04

6.71

7.35

6.50

6.50 -0.21

6007

8.20

6.01

-

-

-

-

LIFE INSURANCE Performance of SR Life Insurance Index Open 734.27 Turnover 86,907 P/E (x) 5.37

High Low 751.42 711.25 Total cos Defaulter cos P/BV (x) ROE (%) 2.82 3.85

Close 721.87 Listed cap 2,290.72 mn Payout (%) 355.53

Change % Change -12.40 -1.69 Market cap 200-Day High 8,522.01 mn Div Yield (%) 200-Day Low 4.85 -

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

East West Life

500

-

1.61

2.25

1.60

1.70 0.09

EFU Life Assurance

850 33.03

60.10

61.00

57.51

58.13 -1.97

14598

86.95

57.51

-

-

-

-

New Jub Life Insurance

627 28.53

41.90

43.00

40.85

42.51 0.61

39558

49.31

39.05

-

-

-

-

Company

Last 60 days High Low

Volume 31748

4.62

2010 Div BR (%) (%)

1.52

-

20R

2011 Div BR (%) (%) -

-

FINANCIAL SERVICES Performance of SR Financial Services Index Open 381.69 Turnover 13,510,657 P/E (x) 11.65 Paid up Cap(mn)

AMZ Ventures

PE

225

Arif Habib Investments

1.32

360

4.43

Open 0.61

High

Low

0.73

0.50

0.58 -0.03

119589

0.95

0.33

-

-

169704

28.00

23.25

-

20B

-

-

7057032

30.20

22.96

30

-

-

-

Dawood Cap Mangt. XB 150

1.38

1.60

2.00

1.25

1.54 -0.06

2.14

1.15

-

-

-

-

250

-

IGI Investment Bank

2121

9.64

2.36

2.58

2.11

2.12 -0.24

50317

3.90

2.11

-

-

-

-

2849

-

0.58

0.88

0.50

0.59 0.01

49667

1.09

0.46

-

-

-

-

Ist Cap Securities

3166

-

3.26

3.44

3.11

3.25 -0.01

304875

3.95

2.95

-

10B

-

-

Ist Dawood Bank

626

0.63

1.70

1.90

1.51

1.75 0.05

23901

2.14

1.05

-

-

-

-

-

10.39

14.05

-

-

10.05

10

-

-

-

508

-

3.60

3.85

3.52

3.60 0.00

309422

4.55

3.20

-

-

-

-

6.91

25.76

28.01

25.63

25.69 -0.07

32899

32.00

25.00

-

-

-

-

JS Investment

1000

6.13 -0.26

517180

KASB Securities

1000

-

4.57 0.06

60564

821

4.51

6.18

6.42

5.81

6.14 -0.04

17278

7.29

5.76

-

-

-

-

775

-

1.86

2.00

1.80

1.91 0.05

347117

2.50

1.80

-

-

-

-

4.51

6.06

10925766

-

500

6.75

10.56 0.17

-

JOV and CO

6.39

10.35

1.28

JS Global Cap

-

11.17

2.75

-

Invest Bank

7633

23704

-

-

20B

23.76 -0.03 23.33 -0.67

56687

16.80

-

-

23.25 22.96

1.75 -0.11

24.85

2011 Div BR (%) (%)

25.25

1.62

410826

2010 Div BR (%) (%)

24.70 2.28

22.48 -0.31

Last 60 days High Low

Volume

23.79

1.86

22.31

Change % Change 0.75 0.20 Market cap 200-Day High 17,879.39 mn Div Yield (%) 200-Day Low 3.57 -

24.00

Dawood Equities

24.85

Close Chg

Close 382.44 Listed cap 30,336.44 mn Payout (%) 99.56

4.29

450 12.12

22.79

High Low 405.01 377.82 Total cos Defaulter cos P/BV (x) ROE (%) 0.25 0.91

3750

Arif Habib Limited Arif Habib Corp

Jah Siddiq Co

High Low Close 1,140.35 1,093.67 1,120.51 Total cos Defaulter cos Listed cap - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.12 13.94 40.49

37.13 -0.46

12.75

Premier Insurance

Company

Close 1,606.88 Listed cap 12,202.80 mn Payout (%) 66.79

36.81

11054

279

GAS WATER AND MULTIUTILITIES High Low 1,646.28 1,571.15 Total cos Defaulter cos P/BV (x) ROE (%) 1.16 11.41

11.01 0.67

PICIC Ins Ltd

Performance of SR Gas Water and Multiutilities Index Open 1,597.66 Turnover 3,835,371 P/E (x) 10.19

38.85

10.04

457

ELECTRICITY High Low 1,320.90 1,274.11 Total cos Defaulter cos P/BV (x) ROE (%) 1.37 9.35

37.59

11.25

1250

Performance of SR Electricity Index Open 1,282.44 Turnover 23,261,059 P/E (x) 14.65

10.34

4.88

4.45

7.59

6.06

5.43

-

3.80

-

-

-

-

-

Orix Leasing Pervez Ahmed Sec Sec Inv Bank

514 12.40

2.75

4.00

2.70

3.10 0.35

68552

4.99

2.00

-

-

-

-

Security Leasing

363

1.50

1.69

1.50

1.69 0.19

11630

2.90

1.01

-

-

-

-

-

EQUITY INVESTMENT INSTRUMENTS Performance of SR Equity Investment Instruments Index Open 1,466.95 Turnover 10,596,259 P/E (x) 19.56

Close 1,411.85 Listed cap 29,771.58 mn Payout (%) 104.74

Change % Change -55.10 -3.76 Market cap 200-Day High 18,931.04 mn Div Yield (%) 200-Day Low 8.32 -

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

2010 Div BR (%) (%)

2011 Div BR (%) (%)

1st Fid Leasing AL-Meezan Mutual F. Atlas Fund of Funds B R R Guardian Mod. Crescent St Modaraba

264 1375 525 780 200

9.38 4.07 2.38 3.16 1.35

2.00 10.72 5.90 1.44 0.66

1.90 11.02 6.38 1.51 0.75

1.36 9.80 5.12 1.26 0.41

1.50 10.10 5.90 1.39 0.54

-0.50 -0.62 0.00 -0.05 -0.12

13555 2982195 6003 32418 32577

2.34 11.50 6.40 2.79 0.87

1.16 6.30 3.51 1.26 0.16

18.5 2.2 0 1.2

-

5.00 -

-

Equity Modaraba First Capital Mutual F. First Dawood Mutual F. Golden Arrow Habib Modaraba JS Growth Fund JS Value Fund KASB Modaraba Meezan Balanced Fund PICIC Energy Fund PICIC Growth Fund PICIC Inv Fund Punjab Modaraba Stand Chart Modaraba

524 12.00 300 7.50 581 0.69 760 2.44 1008 6.16 3180 2.10 1186 1.31 283 1.80 1200 2.46 1000 3.20 2835 4.02 2841 3.50 340 454 4.95

2.00 3.97 2.25 3.32 7.10 5.80 5.53 2.00 9.47 8.12 14.66 6.84 1.47 9.70

2.24 4.89 2.37 3.46 7.24 6.00 5.89 2.80 9.55 8.40 14.70 6.94 1.47 10.63

1.80 3.00 2.02 3.26 7.01 5.41 5.31 1.80 8.40 7.60 13.26 6.24 1.20 9.50

1.92 3.00 2.17 3.42 7.15 5.45 5.45 2.45 8.57 7.75 13.43 6.44 1.26 10.10

-0.08 -0.97 -0.08 0.10 0.05 -0.35 -0.08 0.45 -0.90 -0.37 -1.23 -0.40 -0.21 0.40

101743 11040 6629 240865 228495 1275527 185726 7007 3026876 1170054 793251 428817 5041 32209

2.98 5.44 2.57 3.89 7.30 6.17 6.61 3.50 10.24 8.83 16.49 7.95 2.54 10.63

1.30 2.55 1.61 2.76 6.50 4.09 3.50 1.26 5.33 5.40 9.30 4.50 0.50 8.51

17 21 5 10 2.8 15.5 10 20 10 1 17

- 10.00 - 12.50 - 7.50 -

-

Company

Paid up Cap(mn)

High Low 1,500.31 1,400.11 Total cos Defaulter cos P/BV (x) ROE (%) 0.43 2.21

Open 8.30 30.50 1.25 11.47 10.10 8.40 0.90 14.38 2.20 0.99 17.71 1.25 12.20 70.15 1.70 7.69 7.40 0.40 2.89 111.92 22.00 6.90 2.25 1.95 60.60 18.82 28.41 4.88 1.00 2.50 0.60 2.80 300.00 36.10 289.00 15.30 19.63 2.10 43.94 52.49 8.40 2.45 1.28 49.00 2.50 68.00 12.50 5.76 43.50 10.99 57.00 4.50 37.01 72.12 7.80 9.65 0.92 48.00 42.00 58.01 6.39 0.63 2873.23 1.10 58.95 19.29 10.15 5.49 1.69 41.25 0.89 16.60 12.00 7.71 1.31 625.25 138.00 35.97 41.80 1.15 23.30 3351.10 1.45 2.70 16.71 79.42 90.00 169.99 7.00 1.48 900.00 12.25 6.42 4.00 2.30 6.00 5.66 50.49 6.22 194.83 1095.90 46.15 5.51 56.50 1.45 33.99 19.96 35.59 40.53 102.87 55.99 4.47 3.89 128.00 1.70 2.39 56.41 7.00 45.95 93.06 59.70 1.48 3.00 12.05 7.90 0.67 1340.32 1.50 14.00 2.60 1.29 10.41 1065.00 1.41

High 9.01 31.99 1.35 12.00 10.44 8.44 1.00 14.50 2.35 1.08 18.60 1.22 12.60 70.00 2.25 8.07 7.75 0.40 3.00 111.78 21.89 7.00 2.79 1.92 61.50 19.70 29.69 4.10 1.10 3.04 0.60 2.90 300.00 37.85 289.00 16.30 19.63 2.31 46.13 59.90 8.40 2.65 1.31 50.17 2.40 68.00 12.50 6.34 45.58 12.41 58.90 4.80 38.74 72.45 8.87 10.00 1.15 48.00 43.00 63.70 7.00 0.95 3016.00 1.10 58.95 20.29 11.15 5.50 1.69 42.50 0.85 17.50 11.50 8.00 1.73 661.41 144.90 37.76 42.99 1.15 24.09 3675.00 2.25 2.67 17.70 79.80 92.00 167.87 7.49 1.99 925.99 13.25 6.42 4.65 2.70 7.00 6.48 53.00 6.40 194.83 1129.50 47.00 6.50 57.50 1.57 34.00 20.60 37.36 42.45 108.00 56.99 4.47 4.10 129.90 2.00 2.69 56.41 7.00 48.00 97.70 62.50 2.29 3.50 12.50 7.90 0.69 1398.09 2.40 14.88 3.60 1.49 10.41 1110.00 1.49

Low

Close

8.70 29.00 1.00 11.00 8.85 7.35 0.70 14.00 2.05 0.62 17.50 0.86 12.15 67.00 1.01 7.04 7.69 0.25 1.85 104.50 20.05 6.80 2.12 0.80 59.00 17.82 27.01 3.50 1.00 2.50 0.60 2.80 275.00 35.25 275.01 15.52 18.63 1.90 41.55 52.35 7.60 2.65 1.31 45.41 2.11 67.00 11.50 4.81 40.60 9.99 57.00 4.30 37.50 67.01 7.00 9.00 0.90 47.00 39.90 58.12 5.15 0.47 2510.00 0.61 56.05 18.35 9.15 5.49 1.36 39.10 0.25 15.60 11.00 7.71 1.31 615.02 130.01 34.20 40.24 0.70 21.47 3311.00 0.67 2.26 15.75 75.45 89.50 151.90 5.81 1.20 855.32 12.25 6.00 4.00 1.67 5.06 5.02 48.00 6.13 193.90 1019.16 45.15 4.51 55.75 1.20 32.30 19.08 33.82 38.51 98.05 53.20 3.72 2.91 121.60 1.70 2.00 53.59 6.00 45.95 88.41 59.70 1.48 3.00 12.05 7.80 0.67 1280.10 1.50 13.66 2.60 1.34 9.41 1011.76 0.91

9.00 29.00 1.00 11.13 9.85 7.57 0.70 14.10 2.24 0.90 18.02 1.15 12.30 69.94 1.14 7.11 7.75 0.25 2.01 105.00 20.62 7.00 2.30 0.80 59.89 18.79 29.60 3.50 1.00 3.03 0.60 2.90 288.72 37.74 276.40 16.02 18.64 2.31 41.55 59.90 7.60 2.65 1.31 47.79 2.40 67.00 11.70 4.85 41.34 11.43 58.08 4.50 37.65 72.41 8.87 9.00 0.94 47.82 40.00 60.90 5.51 0.69 2539.75 0.80 56.50 18.35 11.13 5.50 1.37 41.10 0.35 16.60 11.00 8.00 1.32 653.40 136.38 37.73 41.66 0.71 22.83 3596.00 0.85 2.27 16.24 79.09 91.45 159.88 6.11 1.26 896.13 13.25 6.00 4.00 2.30 6.00 5.66 50.49 6.22 193.94 1019.49 46.15 5.51 55.75 1.45 33.99 19.96 35.59 40.53 102.87 55.99 4.47 3.89 128.00 1.70 2.39 56.41 7.00 45.95 93.05 59.70 1.48 3.00 12.05 7.80 0.67 1308.88 1.50 14.00 2.60 1.29 10.41 1065.00 1.41

Change

Vol

0.70 -1.50 -0.25 -0.34 -0.25 -0.83 -0.20 -0.28 0.04 -0.09 0.31 -0.10 0.10 -0.21 -0.56 -0.58 0.35 -0.15 -0.88 -6.92 -1.38 0.10 0.05 -1.15 -0.71 -0.03 1.19 -1.38 0.00 0.53 0.00 0.10 -11.28 1.64 -12.60 0.72 -0.99 0.21 -2.39 7.41 -0.80 0.20 0.03 -1.21 -0.10 -1.00 -0.80 -0.91 -2.16 0.44 1.08 0.00 0.64 0.29 1.07 -0.65 0.02 -0.18 -2.00 2.89 -0.88 0.06 -333.48 -0.30 -2.45 -0.94 0.98 0.01 -0.32 -0.15 -0.54 0.00 -1.00 0.29 0.01 28.15 -1.62 1.76 -0.14 -0.44 -0.47 244.90 -0.60 -0.43 -0.47 -0.33 1.45 -10.11 -0.89 -0.22 -3.87 1.00 -0.42 0.00 0.00 0.00 0.00 0.00 0.00 -0.89 -76.41 0.00 0.00 -0.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.01 0.00 0.00 0.00 0.00 -0.10 0.00 -31.44 0.00 0.00 0.00 0.00 0.00 0.00 0.00

5000 4902 4501 4318 4213 4190 4000 3971 3952 3713 3574 3503 3502 3455 3109 3005 3002 3000 2937 2928 2922 2913 2852 2808 2686 2681 2611 2584 2562 2509 2500 2495 2484 2458 2398 2377 2300 2226 2075 2022 2009 2000 2000 1956 1889 1730 1672 1657 1633 1588 1583 1543 1504 1446 1404 1403 1338 1300 1283 1271 1261 1261 1232 1198 1141 1121 1119 1115 1114 1083 1059 1003 1000 1000 994 899 847 807 769 768 745 730 714 702 665 645 621 562 527 507 500 500 500 490 480 462 429 427 404 401 390 389 319 311 304 304 291 264 255 244 227 202 202 197 150 128 120 103 102 102 101 100 100 79 60 60 59 52 51 45 31 30 28 22

BOARD MEETINGS

Nishat Mills Ltd

KSE 100 INDEX

Dera Ghazi Khan Cement Co Ltd

Engro Corporation

Company

Date

Time

Bata Pakistan Ltd Askari Bank Ltd Sitara Peroxide Ltd Dost Steels Ltd Thal Ltd Noon Kasb Modaraba Quality Textile Mills Ltd Fazal Textile Mills Ltd Descon Oxychem Ltd Descon Chemicals Ltd Invest & Finance Securities Ltd

21-Feb 21-Feb 21-Feb 21-Feb 21-Feb 21-Feb 21-Feb 21-Feb 21-Feb 21-Feb 21-Feb

11:00 10:30 3:00 11:00 12:00 3:30 10:30 11:00 10:30 3:30 11:30

TECHNICAL LEVELS Company

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position 11,954.45

Fair Value

*Invest Cap

77

AKD Securities Ltd

71.45

41.67

Support 1

MA (5-day)

12,014.13

Support 2

11,867.75

MA (10-day)

12,176.10

Resistance 1

12,135.40

MA (100-day)

11,396.29

Resistance 2

12,229.60

Technical Analysis

MA (200-day)

10,648.72

Pivot

12,048.70

RSI (14-day) MA (10-day) MA (100-day)

KSE 100 INDEX closed up 97.81 points at 12,041.15. Volume was 51 per

TFD Research

78.6

Rs Recommendations

41.41 64.65 58.83 53.02 63.04 62.25

see major 1st resistance level at 12,135.40 and 2nd resistance level at Median

Hold

*Invest Cap

36

Buy

Accumulate

AKD Securities Ltd

38.14

Buy

Positive

TFD Research

245.4

Positive

TFD Research

36.55

Positive

210

Brokerage House

Leverage Position Free Float Shares (mn) 175.80 Free Float Rs (mn) 11,047.27 CFS Shares (mn) N/A CFS Rs (mn) N/A CFS Rate N/A ** NOI Rs (mn) 77.58

Fair Value

Technical Outlook

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

Leverage Position

61.45 216.58 192.01 186.78 216.95 213.84

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

147.48 32,347.13 0.0000 0.00 N/A 302.38

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

Pakistan Telecommunication Co Ltd

Brokerage House

Fair Value

Rs Recommendations

Brokerage House

*Invest Cap

52.4

Sell

*Invest Cap

149

Hold

*Invest Cap

AKD Securities Ltd

75.5

Neutral

AKD Securities Ltd

145

Neutral

AKD Securities Ltd

TFD Research

44.25

Neutral

TFD Research

92.3

Positive

TFD Research

139.5

Neutral

TFD Research

Technical Outlook

Technical Outlook 55.57 41.26 35.02 31.50 41.20 41.15

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

326.94 13,427.36 N/A N/A N/A 79.98

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

39.83 75.58 70.42 68.36 74.39 74.43

318.50 23,559.29 0.0000 0.00 N/A 141.95

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

65.55 151.15 123.18 115.17 152.07 150.92

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

Fair Value

Rs Recommendations

25

Buy

23.91

Buy

25.8

Positive

Technical Outlook

Technical Outlook

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

200.80 4,903.65 N/A N/A N/A 48.51

DGKC closed down -2.58 at 24.42. Volume was 4 per cent below average and Bollinger Bands were 60 per cent wider than normal.

DGKC is currently 8.8 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of DGKC at a relatively equal pace. Trend forecasting oscillators are currently bearish on DGKC. Momentum oscillator is currently indicating that DGKC is currently in an oversold condition.

Hold

Technical Analysis

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

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

Accumulate

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

Leverage Position

20.57 27.53 28.36 26.77 26.00 25.90

ENGRO closed up 9.26 at 219.33. Volume was 10 per cent below average and Bollinger Bands were 16 per cent narrower than normal.

ENGRO is currently 17.5 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into ENGRO (bullish). Trend forecasting oscillators are currently bullish on ENGRO.

Fauji Fertiliser Co

Rs Recommendations

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

45.52

39

Rs Recommendations

229.9

AKD Securities Ltd

*Invest Cap

Fair Value

*Invest Cap

National Bank of Pakistan

Rs Recommendations

Brokerage House

AKD Securities Ltd

12,229.60, while Index will continue to find its 1st support level at * Target price for Jun-11 & **Net Open Interest in future market 11,954.45 and 2nd support level at 11,867.75.

NML closed down -1.07 at 62.84. Volume was 100 per cent above average and Bollinger Bands were 25 per cent narrower than normal. average and is displaying a downward trend. Volatility is relatively norNML is currently 18.5 per cent above its 200-day moving average and is mal as compared to the average volatility over the last 10 trading ses- displaying a downward trend. Volatility is relatively normal as compared to sions. Volume indicators reflect volume flowing into and out of INDEX the average volatility over the last 10 trading sessions. Volume indicators at a relatively equal pace. Trend forecasting oscillators are currently reflect moderate flows of volume out of NML (mildly bearish). Trend forebearish on INDEX. casting oscillators are currently bearish on NML.

Fair Value

Rs Recommendations

Buy

KSE 100 INDEX is currently 13.1 per cent above its 200-day moving

Fauji Fertiliser Bin Qasim Ltd

Fair Value

Accumulate

Technical Outlook

cent below average (consolidating) and Bollinger Bands were 10 per cent MA (200-day) narrower than normal. As far as resistance level is concern, the market will Mean

Brokerage House

Brokerage House

373.19 57,206.28 N/A N/A N/A 69.85

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

47.32 18.54 19.16 19.13 18.46 18.24

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

585.02 10,957.49 N/A N/A N/A 7.98

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

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

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

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

FFBL closed up 0.22 at 41.07. Volume was 68 per cent below average (consolidating) and Bollinger Bands were 62 per cent narrower than normal.

FFBL is currently 30.4 per cent above its 200-day moving average and is displaying a downward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of FFBL at a relatively equal pace.

Trend forecasting oscillators are currently bearish on FFBL.

NBP closed down -0.16 at 73.97. Volume was 68 per cent below average (consolidating) and Bollinger Bands were 13 per cent narrower than normal.

NBP is currently 8.2 per cent above its 200-day moving average and is displaying a downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of NBP at a relatively equal pace. Trend forecasting oscillators are currently bearish on NBP.

FFC closed up 4.05 at 153.29. Volume was 2 per cent below average and Bollinger Bands were 44 per cent narrower than normal.

FFC is currently 33.0 per cent above its 200-day moving average and is displaying a downward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of FFC at a relatively equal pace. Trend forecasting oscillators are currently bearish on FFC.

PTC closed up 0.78 at 18.73. Volume was 11 per cent above average and Bollinger Bands were 38 per cent wider than normal.

PTC is currently 2.1 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume out of PTC (mildly bearish). Trend forecasting oscillators are currently bearish on PTC.

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

RSI 1st 2nd (14-day) Support 38.85 2.80 2.75 40.98 67.80 67.50 24.85 50.10 48.90 33.93 22.90 22.50 35.98 23.40 23.00 36.04 82.30 80.90 35.59 15.70 15.30 47.59 10.45 10.25 44.36 360.40 356.20 34.96 113.85 112.70 36.67 10.25 10.00 35.87 3.15 2.80 25.92 7.70 7.60 41.03 1.75 1.65 21.22 24.20 24.00 40.75 2.65 2.55 37.51 2.25 2.15 36.07 37.05 36.10 20.75 57.10 56.05 61.12 216.75 214.15 33.63 13.40 13.25 33.75 4.40 4.25 55.74 40.80 40.55 66.11 151.55 149.85 50.47 121.20 119.20 47.46 37.65 37.45 51.90 146.95 145.70 37.88 272.95 269.50 41.12 3.50 3.40 43.14 1.50 1.45 58.45 2.75 2.70 44.21 10.40 10.20 59.17 43.15 42.35 45.61 2.65 2.60 56.72 15.70 15.45 35.15 66.40 65.20 40.23 213.70 212.00 34.67 2.25 2.00 40.12 73.35 72.75 61.63 25.30 24.30 42.68 22.00 21.55 33.98 2.50 2.45 59.62 2.55 2.45 41.63 60.00 57.20 37.35 164.35 162.75 49.91 2.95 2.85 46.20 1.85 1.75 56.22 2.65 2.55 39.02 6.00 5.65 46.02 313.80 311.20 33.06 199.90 198.20 40.05 62.75 61.35 33.15 270.15 266.80 46.87 18.45 18.20 44.39 205.25 203.65 38.44 24.80 24.45 50.07 13.30 13.15 62.03 24.95 24.45 37.96 1.95 1.85 38.91 3.00 2.95 35.64 61.95 60.95 45.95 2.55 2.45

1st

2nd

Resistance 2.90 2.95 68.70 69.25 52.40 53.55 23.75 24.20 24.10 24.40 84.80 85.90 16.30 16.60 10.80 10.95 369.00 373.45 116.35 117.70 10.75 10.95 3.75 4.00 7.95 8.05 2.10 2.25 24.80 25.20 2.90 3.10 2.50 2.60 39.50 40.90 59.60 61.05 221.70 224.05 13.85 14.15 4.65 4.80 41.35 41.60 154.30 155.35 126.10 129.00 38.05 38.25 149.65 151.20 281.95 287.45 3.70 3.85 1.60 1.65 2.85 2.90 10.75 10.95 44.65 45.35 2.85 2.95 16.25 16.50 68.90 70.20 216.65 217.90 2.70 2.90 74.45 74.90 27.05 27.85 23.20 23.90 2.70 2.80 2.70 2.80 64.40 66.00 168.25 170.55 3.10 3.20 1.95 2.00 3.00 3.20 6.55 6.75 318.50 320.60 203.70 205.80 65.30 66.50 276.85 280.20 18.90 19.05 209.25 211.60 25.50 25.85 13.60 13.70 25.90 26.25 2.15 2.25 3.15 3.20 64.05 65.15 2.70 2.80

Pivot 2.85 68.40 51.25 23.35 23.70 83.40 15.95 10.60 364.80 115.20 10.50 3.40 7.85 1.95 24.60 2.80 2.35 38.50 58.55 219.10 13.70 4.55 41.05 152.60 124.10 37.85 148.45 278.45 3.60 1.55 2.80 10.60 43.85 2.75 16.00 67.70 214.95 2.45 73.85 26.10 22.75 2.60 2.60 61.60 166.65 3.05 1.90 2.85 6.20 315.90 202.00 63.90 273.50 18.60 207.65 25.15 13.45 25.35 2.05 3.10 63.05 2.60

Sun Life sags on soft core earnings 8

Monday, February 21, 2011

Nan Shan union wants same benefits to sales agents as staff

Union adds to ‘AIG Taiwan’ sale fuss AMSTERDAM: Chief Executive Officer of Dutch bancassurer ING, Jan Hommen, speaks during a news conference to present the company's 2010 annual results. -Reuters

Embargoes torpedo Iran crude ship cover LONDON: Iran's biggest crude oil tanker operator NITC said last week its ship insurers had declined to renew policy cover for the coming year due to the impact of tightening sanctions in the European Union.

Western nations suspect Iran is seeking to develop a nuclear bomb although Tehran says its atomic programme is peaceful.

NITC gets its third party liability insurance and pollution cover from the P&I Club market, marine insurers owned by shipping clients.

"NITC has found itself caught up in a situation of tightening sanctions as a totally innocent party, along with some 100 other Iranian shipping companies," NITC chairman and managing director Mohammad Souri said in a statement.

The privately owned group said its four P&I clubs had declined to renew cover for the 2011/2012 policy year, adding it hoped for an early resolution of this matter and "speedy renewal of cover" from the international group of clubs. Its policies expire on Feb. 20.

"In the meantime, the company has been obliged to ensure that alternative P&I

arrangements are in place for all ships trading in its international fleet, up to the required level of $1 billion of pollution cover for each incident," Souri said.

"That cover is being provided by a mixture of fixedpremium insurers and other insurance companies based outside the EU, with adequate and suitable reinsurance provision," he said without naming the providers.

NITC's four P&I insurers are member clubs within the International Group of P&I Clubs.

Andrew Bardot, executive officer with the International Group of P&I Clubs, told Reuters while he was not privy to the specific negotiations he said that the clubs concerned had been liaising closely with NITC and with the UK Treasury "regarding the sanctions applicable to NITC's insurance arrangements".

"To the extent that NITC are compelled to seek P&I cover outside the International Group Clubs, such cover, which is ultimately provided for the benefit of third-party victims, is unlikely to replicate the scope and levels of cover that would be available had they

been insured with a club or clubs that are members of the International Group," he said.

The Treasury could not immediately be reached for comment.

A senior NITC official told Reuters in November that a revised European clause on Iranian sanctions was expected to mean that it would be able to secure insurance cover in the EU. NITC's fleet of tankers have Malta and Cyprus flags, data on NITC's website showed.

"The company ... respects all international conventions and has never been engaged in any activity prohibited by the US, U.N. or EU," he said.

"The question of sanctions which might affect NITC's P&I arrangements has been pending for some six months, and we would like to thank all parties involved for their patience and support during this very difficult period."

EU sanctions have aimed to block oil and gas investment in Iran and curtail Tehran's refining and natural gas capability, but they have been crafted in a way that reduces the impact on ordinary Iranians. -Reuters

Ambac weights its law suit against JPMorgan NEW YORK: Bankrupt bond insurer Ambac Financial Group Inc has filed new legal claims stemming from its insurance of Bear Stearns mortgage-backed securities, after another court dismissed the case.

Ambac sued JPMorgan Chase & Co, which bought Bear Stearnsand its EMC Mortgage business in early 2008. The lawsuit, brought in a New York state court on Thursday, contends that Bear Stearns misled Ambac into insuring bad pools of mortgage-backed securities.

The lawsuit revives a lawsuit lodged in federal court that was dismissed last week by a judge who said he lacked jurisdiction. Ambac contends that Bear Stearns recklessly packaged bad loans into insured securi-

ties and that Bear's acquirer, JPMorgan, failed to honor a variety of contractual promises.

"Ambac is a large, sophisticated insurance company that is trying to blame others for risks it knowingly took and was paid for taking. We do not believe Ambac's claims are meritorious and intend to defend Bear vigorously,"JPMorgan said in a statement.

Ambac, which had been the second-largest US bond insurer, filed for bankruptcy last November after being crushed by losses on mortgage bonds.

The lawsuit in part concerns whether EMC, which securitised some mortgage loans that went bad, pocketed money from originators to address "early payment

defaults" rather then apply it as intended toward the bonds backed by the loans.

Ambac said that by doing so, Bear exposed it to more potential losses by virtue of its having insured those bonds.

In the lawsuit, Ambac said it has paid out more than $641 million in claims on just four transactions. It is seeking damages including all of the claims payments it has made and may make in the future.

The case is Ambac Assurance Corp. vs. EMC Mortgage Corp and J.P. Morgan Securities Inc, New York State Supreme Court, New York County, No. 650421/2011. Reuters

BISP plan for poor’s life insurance commended ISLAMABAD: Chairperson Benazir Income Support Programme (BISP), Farzana Raja has said that 30 to 40 million people are getting benefit out of the programme.

"BISP has started poverty survey across the country to collect data about the deserving people, adding, the main purpose of survey to provide relief to the masses through their programme," she told PTV. Farzana said the survey would be completed till 30 June. She said that BISP is providing 1000 rupees monthly to the deserving families to enhance their income. This programme is successfully working to provide relief to the poor segments of the society.

Chairperson of BISP said the government of Pakistan People's Party (PPP) has established BISP to reduce ratio of poverty from the country.

"We have given various relief packages such as Cash Grant programme, Waseela-eHak, Life Insurance, Vocational training programme and emergency relief package for the flood victims."

Bahrain debt insurance costs rise sharply LONDON: The cost of insuring Bahrain's debt against default rose to fresh 18-month highs in the five-year credit default swap market on Thursday as protests continued in the country.

Police attacked demonstrators camped out in the capital on Thursday, killing three.

Bahrain's five-year credit default swaps rose 24 basis points (bps) to 285 bps, according to Markit, hitting fresh 18month highs.

Bahrain's CDS have risen nearly 50 bps this week.

Other regional CDS also rose, with Saudi Arabia up 3 bps at 127 bps and Israel up 5 at 146 bps. Egyptian CDS rose 9 bps to 350 bps, Markit said. Reuters

Union wants buyer to pay up to $540mn as agents' pension Last month the union Buyer Ruen threatened protests if Ruen Chen applied to Chen didn't agree to talk about the issue. regulator last "We will continue to fully with union week for deal OK communicate members and try to understand their positions," said TAIPEI: Bailed-out insur- C. T. Cheng, Ruen Chen's er AIG is facing fresh hur- chairman. He declined to dles in its second attempt to elaborate further. sell its Nan Shan unit in AIG has been trying to sell Taiwan, with an unhappy Nan Shan for some 15 union weighing in against months as part of its plans to the $2.16 billion deal. help pay back the US govThe agreement to sell the ernment for its $182 billion unit, Taiwan's No.3 life bailout. insurer, to Ruen Chen Its first attempt was Investment, a group of blocked by Taiwan's regulahypermarket chain Ruentex tors on concerns about the and shoe maker Pou Chen , suitability of the previous already faces tough scrutiny buyer group, battery maker from regulators mindful of China Strategic and investany impact on Nan Shan's 4 ment firm Primus Financial. million policyholders--oneSome observers have sixth of Taiwan's popula- noted that Ruen Chen is also tion. made up of non-insurance Another storm is brewing companies, meaning it too over pension payments to could fall foul of one of the the insurer's 30,000 plus regulators' five conditions sales agents, whom the for a sale: that any buyer union says should get the must have industry experisame benefits as regular ence. salaried staff. The union Ruen Chen submitted its wants Ruen Chen to pay application to regulator, the some T$15 billion to T$16 Financial Supervisory billion ($510 million-$540 Commission, last week. million) in pension money AIG issued a statement to the agents. denying local media reports That would cost Ruen that it had given Ruen Chen Chen another 25 per cent on special treatment in the bidtop of the purchase price, ding process. and is a request that neither "AIG did its best to carry it nor AIG are expected to out a fair bidding process, accept. and treated all bidders the "We have made it very same way," the statement clear to Ruen Chen about said. our requests, but there was "The reason Ruen Chen no positive response from was successful was that it them at all," said Anita made clear its ability to meet Yang, a union spokes- AIG's requirements and the woman. The two sides met Financial Supervisory to discuss the issue last Commission's five condiweek. tions." -Reuters

Insurers at KSE don’t buck trend TFD Report KARACHI: Insurance stocks followed the overall trend of dull activities at the Karachi Stock Exchange (KSE) last week as just around 2 million shares were traded together in life and non-life sectors.

Pak Reinsurance stood as the volume leader with 735,524 shares followed by Adamjee Insurance with 727,392

shares.

Top gainers of the week include Central Insurance which increased by Rs3.1 to close at Rs70.61 and IGI Insurance by Rs3.07 to close at Rs99.88.

EFU Life Assurance was down by Rs1.97 to close at Rs58.13 and United Insurance

by Rs0.89 to close at Rs6.11 being the major losers of the week.

Pakistan Reinsurance workshop sells ideas KARACHI: The Pakistan Reinsurance Company organised a workshop here.

An announcement said that the topic of the moot was " The magic of being positive".

Senior executives and managers of various insurance companies attended the

workshop which was aimed at fostering the right kind of approach in the practical and other aspects of the life with a view to make judicious decisions.

Ayaz Hussain Gad and Noman Ahmed also expressed their views on the occasion.-APP

Industrial Alliance profit flat, shares rise TORONTO: Industrial Alliance Insurance and Financial Services Canada's No. 4 insurer, reported a flat fourth-quarter profit as stronger wealth management earnings offset lower individual insurance returns.

The results gave a small boost to the company's shares. At midmorning, the stock was up 0.9 per cent at C$38.59 on the Toronto Stock Exchange.

The Quebec City-based company earned a net C$67.4 million ($68.8 million), or 80 Canadian cents a share, in the three months ended Dec. 31.

That compared with a profit of C$67.4 million, or 83 Canadian cents a share, a year earlier.

Analysts polled by Thomson Reuters I/B/E/S had expected, on average, a profit of 78 Canadian cents a share.

Profit from individual insurance fell 79.7 per cent to C$21.1 million, while the wealth management business earned C$25.8 million, compared with a small loss a year earlier.

Return on equity was 12.7 per cent. The company maintains a target range of 12 to 14 per cent for that key measure of profitability.

The company said it expects full-year 2011 per-share profit to be in a range of C$3.05 to C$3.60. -Retuers

Ageas set to enter Turkish non-life mkt BRUSSELS: Belgian-based insurance group Ageas, formerly known as Fortis, has agreed a partnership with Turkish conglomerate Sabanci Holding that will allow it to enter the fastgrowing Turkish market.

The two companies said that Ageas would buy 31 per cent of Turkey's fourth-largest non-life insurer Aksigorta, half of Sabanci's stake, for $220 million, a 53 per cent premium to Aksigorta's market capitalisation.

The deal, subject to regulatory approval and expected to be completed in the second quarter, adds to Ageas's existing partnerships with BNP Paribas in Belgium, Tesco in Britain, Millennium bcp in Portugal, UBI Banca in Italy and to its Asian joint ventures.

"The acquisition is a great opportunity for us to participate in the expected growth of the Turkish insurance market," said Steven Braekeveldt, the head of Ageas's division for continental Europe.

Turkey's insurance income is just above 1 per cent of the country's annual output, compared with 3 per cent in the European Union.

Aksigorta had gross written premiums of 886 million Turkish lira ($562 million) in 2010 and a market share of 8 per cent. Almost half of its premium income is from motor insurance.

As part of the transaction, Aksigorta will enter into a 15 year exclusive agreement with Sabanci's Akbank for the distribution of products that can thereafter be renewed for periods of five years.

Aksigorta shares were trading up 2.1 per cent at 0830 GMT. Retuers

Team Russia, Alexsandr Zubkov, Alexey Voevoda celebrate victory in Skeleton World Championships competition in the Bavarian

09

Monday, February 21, 2011

Darren Bravo wants fame CHENNAI: As if growing up in the shadow of a very successful sibling - even if a halfbrother - was not enough, Darren Bravo comes into his first World Cup with some more weights around his ankles: that of being touted as a remodelled version of the man who represented highquality West Indian batsmanship even when the team's results were going into a tail spin.

That man is Brian Lara, who left the 2007 World Cup with possibly the most stylish farewell in cricket, by asking a question to his adoring audience, "Did I entertain?". Bravo Jr steps into the 2011 Cup with an understanding that this is now the time to seize his moment and of course, entertain. Stepping out after practice at the Indian Air Force's first-class ground at Palam, in Delhi, Bravo said the World Cup brought with it a new awareness for a young player like him. "Anywhere you pass, you can see a World Cup poster. It's always reflecting in your mind that hey, this is a really big tournament. That this is one stage where you really want to perform and make the world recognise you."

Bravo, 22, has time and opportunity to be recognised in this tournament, coming into the West Indies batting line-up just like Lara did; a left-handed No. 3. Just after his debut, his captain Chris Gayle had spoken of his resemblance to Lara, both in technique and appearance. Viv Richards has been upping the ante around him on Indian television, talking about the similarity between the two Trinidadians.

-Online

Almagro set to meet Chela in Buenos Aires Open final BUENOS AIRES: Top seed Nicolas Almagro will meet Argentine Juan Ignacio Chela in the final after two wins apiece on Saturday in the rainaffected Buenos Aires Open.

Almagro followed his early afternoon quarter-final victory over Argentine wild card Jose Acasuso with a devastating performance to beat fellow Spaniard Tommy Robredo 7-5 6-1 in their evening semi-final.

Robredo, winner of the Santiago Open two weeks ago at the start of the Latin American claycourt circuit, had earlier disposed of home favourite David Nalbandian 64 6-4 in a tussle of former champions.

Chela reached his first home final with a 6-2 6-2 upset victory over second seed Stanislas Wawrinka having earlier completed a 6-4 3-6 6-3 win against Albert Montanes of Spain.

Wawrinka, the world number 15 playing his first tournament on clay since last year's French Open, had earlier beaten Argentine fifth seed and 2007 champion Juan Monaco 7-5 63 in their quarter-final.

Wawrinka's defeat was only his second in 14 matches this year after losing to fellow Swiss Roger Federer in the Australian Open quarter-finals.

"I've been looking for this for 11 years," the 31-year-old Chela, three times a semifinalist, said of the tournament at the Buenos Aires Lawn Tennis Club first held in 2001.Agencies

Cricket World Cup

Lanka shoot down Canada HAMBANTOTA: Mahela Jayawardene smashed an 81ball century, the fastest by a Sri Lankan in the World Cup to set up a 210-run victory over Canada on Sunday in Group A. Jayawardene blasted a six and nine fours in his 100 to set up a hefty 332-7 after Sri Lanka won the toss and batted first. He was joined for a 179run third-wicket partnership by Kumar Sangakkara who was out eight runs short of his century.

In response, Canada lost wickets steadily although some lusty hitting by Rizwan Cheema (37) including two big sixes helped take them past three figures to their eventual 122 all out.

Jayawardene's quickfire knock surpassed the previous Sri Lankan fastest in the competition, 85 balls by Sanath Jayasuriya scored against Bangladesh in 2007 in Port of Spain.

On a slow pitch and outfield where stroke making was difficult at a new stadium, Jayawardene adjusted his game beautifully to suit the conditions.

Jayawardene struck nine fours and a six. He survived two caught behind appeals at 11 and 22 as the referral sys-

tem did not have the hot spot or the snickometer to guide the third umpire.

Sangakkara was unfortunate not to score his maiden World Cup hundred when he was dismissed for 92, hitting an easy return catch to John Davison.

He faced 87 balls and hit seven fours and a six.

The pair came together after Upul Tharanga was run out for 19 when he was sent back by his opening partner Tillakaratne Dilshan.

The run out was set up by Sri Lanka-born Ruvindu Gunasekera who fielded the ball and threw in from mid-off.

Dilshan completed his halfcentury off 58 balls but was out the next ball he faced, chasing a wide delivery from Davison and holing out to deep cover. He completed 5,000 runs in ODIs. Sri Lanka's varied bowling attack, even minus fast bowler Lasith Malinga who did not play due to a sore back, then proved too much for Canada.

Thisara Perera, who took Malinga's place in the side, made a memorable World Cup debut with a wicket off his first ball, taking the prize scalp of Canada's most experienced batsman, Davison, for a duck. Reuters

Shiv Sena threats brushed off: Waqar ISLAMABAD: Pakistan cricket team coach Waqar Younis has said that threats given by Shiv Sena would not affect Pakistan players.

They all are fit and ready to perform with great spirit in the World Cup. According to a private TV channel, they are focusing the upcoming matches of tourna-

ment.

He said the players have worked hard for the World Cup and victory is vital to revive cricket in Pakistan.

Waqar Younis did not termed any team as favourite but he said the team who will play well, would win the World cup and he hopes it would be Pakistan.-APP

HAMBANTOTA: Sri Lanka's captain Kumar Sangakkara (L) plays a shot as Canada's captain and wicketkeeper Ashish Bagai watches during their ICC Cricket World Cup group A match.-Reuters

Hamburg sign Chelsea's Arnesen as sports director BERLIN: Hamburg SV have signed Chelsea's Frank Arnesen as their new sports director starting next season to help end a 24-year wait for a major title, the Bundesliga club said on Sunday.

Former European Cup winners Hamburg, whose last major title was the 1987 German Cup, said Arnesen, who is still the Premier League club's sports director, will take over from July 1 on a three year contract.

"Hamburg is a special club with a long tradition and fantastic infrastructure," former Denmark international Arnesen said in a statement.

"I am convinced that with the strength we have and the right decisions we can develop something big."

Arnesen will be joined in Hamburg by current Chelsea chief scout Lee Congerton.

Hamburg, who also won the now defunct German League Cup in 2003, have been looking for a sporting director for almost two years.

They were close to agreeing in late January with former German international Matthias Sammer before he rejected their offer to stay at the German football federation.Reuters

Beware of underdogs, Miandad warns team KARACHI: Former skipper Javed Miandad has warned Pakistan team to be aware of underdogs teams like Canada, Kenya and Zimbabwe during their matches in the Cricket World Cup 2011.

Cricket minnows Canada, Kenya with Zimbabwe and Defending Australia, last championship runners-up Sri Lanka and semifinalist New Zealand are drawn in group "A".

Shahid Afridi's team was due to meet Kenya in their opening match at Hambantota on Feb 23.

"If top players perform well against minnows that doesn't get any credit. So it was important for seniors to perform and give their best against these teams," Javed Miandad told APP Sports Correspondent Ehsan Qureshi in an interview on Sunday.

"I always use to make extra efforts to perform well against smaller teams. If you don't perform against these unfancied teams it dents your reputation," he pointed out.

"Look at these teams. They always proved dangerous because these minnows are

under no pressure," Miandad, who played a pivotal role on Pakistan's triumph in 1992 World Cup at Melbourne, maintained.

"World Cup is a top event and whole nation is fully into it and looking at you to excel in all areas of the game," he said. "The players must take their responsibility seriously," he added.

"There is too much talking

by Pakistan team in the media. Its better that their bat and ball talk and seniors perform in the middle," he commented.-APP

Indian batmasters lock what BD sluggers lack DHAKA: Bangladesh showed in a 87-run opening day defeat to co-hosts India that they have plenty of talented batsmen but the lack of a cutting edge with the ball could make this a long, tough World Cup for them in the field.

Saturday's match in the Bangladesh capital will be remembered for the home fans' carnival beforehand, India opener Virender Sehwag's majestic 175 -- and a dreadful

decision to insert the visitors on a dream batting pitch by Shakib Al Hasan.

If the Bangladesh skipper had a potent mixture of seam and spin at his disposal, that decision might have made sense.

But since he does not, India simply feasted off his nervous attack on their way to their huge 370-4 total.

Bangladesh, in retrospect, only had one chance against the tournament favourites and that

was to post their own serious batting total first and hope India would crumble under the pressure of the occasion and a fanatical Dhaka crowd.

Shakib may have blundered but a more worrying long-term concern for him is his attack which looks short of the class they will need to worry England, West Indies or South Africa in Group B, one of whom they will probably need to beat to progress.-Reuters

NZ make mincemeat of Kenya CHENNAI: Hamish Bennett led New Zealand's humiliation of a Kenya outfit clearly out of its depth, attacking the stumps with metronomic accuracy to rip out four quick wickets as the minnows capitulated for just 69 - their lowest World Cup total and the fifth worst overall.

Tim Southee helped himself to three cheap wickets, while Jacob Oram also picked up three in three overs before Martin Guptill and Brendon McCullum eased their side to an unchallenged 10-wicket win.

Kenya's first showing at this tournament demonstrated both their lack of competency against good, but hardly exceptional, seam bowling and their incomprehension of the review system - borderline decisions were accepted without question and clear cut ones questioned out of sheer desperation.

Jimmy Kamande called correctly at the toss and opted to bat on a pitch expected to help

slow bowlers, but that was Kenya's last success of the morning. The new ball barely deviated off the straight for Southee but Kenya's young opening pair, perhaps overawed by the occasion, remained nervously rooted to the crease. They had cobbled together just 14 runs - all in singles - when Southee nipped one off the seam to strike Alex Obanda in front of leg stump.

Umpire Marais Erasmus' decision initially looked a good one, but there was a hint that a review might have been in order. The Kenyans were, of course, unfamiliar with the UDRS but that provides no excuse for Obanda's tame acceptance of his demise as replays showed that the ball would have gone over the top of the stumps by at least an inch or two.

With the innings drifting swiftly into mediocrity Collins Obuya got going with a couple of meaty blows off Nathan McCullum, who opened the bowling from the other end,

but just as he and Waters were starting to gain momentum Bennett was introduced and soon had the innings in disarray. First, he fired one full and straight at Waters, the ball shooting through at a low shin height to pin the batsman in front of his stumps.

There would have been high hopes in the Kenyan camp of Steve Tikolo, their veteran batsman, sparking a revival but he was swiftly removed by a searing full delivery that burst through a lazy swish to make a mess of his stumps.

With the ball keeping low and starting to nip off the seam Obuya was the next batsman to be rapped on the front pad, right in front of middle.

Perhaps out of desperation, a completely superfluous review was called for but there was no second life for Obuya and the innings sank even further when Maurice Ouma was dispatched in identical fashion in Bennett's next over to leave Kenya staring into the abyss at 49 for 5.

That soon become 59 for 6, Jacob Oram finding the edge of Kamande's bat to end his brief resistance, and with that the fight went from Kenya's innings. Oram had Thomas Odoyo, who was fending at a rising delivery, easily caught

by Jesse Ryder and Southee was on a hat-trick when he removed Nehemiah Odhiambo and Shem Ngoche with the last two balls of his sixth over.

There was no second international hat-trick for him, however, with Elijah Otieno flicking Oram straight to midwicket shortly afterwards to end a miserable Kenyan innings.

Guptill took the lead as New Zealand completed the formality of the chase in just eight overs, thrashing two enormous sixes and peppering the boundary almost at will in a 32-ball 39. An uninspired McCullum chipped in with a rapid 26 as Kenya at least attempted to remain upbeat in the field despite the futility of their efforts.-Reuters

10

International

Monday, February 21, 2011

US EXPECTS ITS ALLY BAHRAIN TO CONTAIN UNREST * US INTELLIGENCE SOURCES SEE EVENTUAL RESOLUTION * LEAKED CABLES SHOW UPBEAT VIEW OF BAHRAIN REFORMS * OBAMA WAS WARNED ABOUT POSSIBLE BAHRAIN UNREST

U

S national security and intelligence agencies expect Bahrain's government to ride out the protests and violence sweeping the Gulf kingdom, a small but vital ally to Washington in a volatile region.

A senior US official familiar with government reporting and analysis on the island nation said on Friday that Bahraini authorities believe they can handle the unrest, which has included security forces shooting and killing demonstrators.

US intelligence agencies agree, for the moment, that government forces will eventually restore order, the official indicated.

The upheaval in Bahrain, which hosts a major US military base and borders the world's No. 1 oil producer, Saudi Arabia, appears rooted in discontent among the Shi'ite Muslim community that is much larger than the Sunni minority dominating the monarchy and government.

But the senior US official said Bahraini Shi'ites viewed themselves as "nationalists" and were therefore less susceptible to outside influences such as protests roiling other parts of the Middle East or attempted subversion from neighboring Iran.

The relatively optimistic US take on the Bahrain unrest is consistent with upbeat assess-

ments of the leadership and political situation recorded in classified State Department cables obtained by the WikiLeaks website.

Several 2009 cables from the US Embassy in Manama characterized King Hamad bin Isa al-Khalifa as an enlightened and deeply pro-American ruler who, since assuming the throne in 1999, has fostered reconciliation with the Shi'ite majority and undertaken serious political and economic reforms. The cables were made available to Reuters by a third party. One cable, classified "Secret," reported in December 2009 that King Hamad "inherited a country torn by sectarian violence and accustomed to dealing with the Shia majority underclass as a problem." "(The new king) quickly embarked on a program of reform and reconciliation with Bahrain's Shia: he allowed exiles to return home, abolished the State Security Courts, and restored the parliament suspended since 1975," it said.

"King Hamad understands that political stability is also tied to economic prosperity and has undertaken far-reaching economic reforms intended to increase Bahrain's competitiveness, productivity and living standards," it said.

"The result is that the Bahrain of today is a far cry from the Bahrain of the 1990s.

Political parties operate freely ... Street protests are significantly fewer and less violent.

Perhaps most tellingly ... (the Shia Wefaq party) will continue to engage in parliamentary politics because ... there is more to gain in the long run by participating than by boycotting." Following the violence against protesters, Wefaq representatives resigned from parliament on Thursday.

A November 2009 cable -classified "Confidential" and entitled "Grading Bahrain's Parliament" -- said: "From the government's point of view, parliament has done what it was intended to do. It has contributed to internal security and stability by giving the Shia opposition a forum in which to air its grievances, and it has devolved much of the traditional tribal problem-solving."

The cable noted that, since joining parliament in 2005, the Shia Wefaq party had "portrayed itself as a loyal opposition and has won the quiet respect of the interior ministry for its ability to organise peaceful demonstrations of tens of thousands of supporters."

"In broad terms, Bahrain's seven-year-long parliamentary experience has been successful. It has provided an open, albeit controlled, forum for the Shia opposition to press its demands and engage with the

government on controversial issues."

The extent of the ruler's enthusiasm about cooperating with the United States is outlined in a "confidential" cable from May 2009 describing a meeting between King Hamad and General David Petraeus, then head of US Central Command. In introductory remarks, the king spoke fondly of his personal experience

training at US military facilities at Fort Leavenworth, Kansas, and welcomed a possible deployment of US P-3 maritime reconnaissance aircraft at a Bahrain base.

"Anything you want on land, sea or air, we can do it," the king told Petraeus.

While US officials said they believe Hamad's government will eventually restore order, the eruption of protests in

Tunisia and Egypt had put Bahrain on their radar as a potential trouble spot.

Some officials said Bahrain was one of several countries in the Middle East identified by US intelligence agencies as possible venues for the spread of political unrest in reports to President Barack Obama and some of his senior advisers.

Some members of congressional intelligence committees

have questioned whether US agencies were behind the curve in recognising and reporting on the wave of unrest in the Middle East and North Africa.

James Clapper, the new director of national intelligence, insisted at recent congressional hearings that US agencies did a good job of monitoring and forecasting the events. -Reuters

Currency hopes backs inflation-hit emerging bonds * Emerging cbanks speed up rate rises as inflation bites * Investors bearish bonds, bullish FX as currency war fades * China, Malaysia among FX winners; India, Turkey losers

C

urrency appreciation bets have taken centrestage in emerging bond investors' strategies for 2011 as they hope surging inflation will force central banks across the developing world to let exchange rates rise.

Central banks have accelerated the pace of interest rate increases, with China hiking rates twice in six weeks and Indonesia finally kicking off its policy tightening campaign.

But with policymakers perceived to be well behind the curve on inflation, investors for the most part are bearish on emerging local currency debt.

JPMorgan data shows January was the third month of declining capital flows to emerging debt as real interest rates remain extremely low or negative.

Many are reluctant to exit positions altogether, however,

as they believe central banks will have no choice but to let currencies firm as part of their policy tightening measures.

Pierre-Yves Bareau, who oversees $11 billion in emerging debt at JPMorgan Asset Management, expects FX appreciation to provide up to half the 10 per cent portfolio returns he is targeting for 2011.

"Interest rates in most emerging markets are too low and most currencies are undervalued," he said. "But we expect currencies to start appreciating and that should make up for losses on the rates side."

JP Morgan's GBI-EM index of local bonds has rallied modestly in recent days -- a rise the bank attributed to currency gains.

Markets are pricing another 100 basis points or more of rate tightening this year in

Brazil, Chile, Israel, Poland, Turkey and South Korea, Morgan Stanley data shows.

The bank's chief emerging markets macro strategist Rashique Rahman says bond buyers who do not hedge currency exposure can expect to make returns of around 5 per cent this year. But returns for hedged portfolios should be flat to negative, he predicts.

"Against the backdrop of higher inflation, we think EM central banks will end up tolerating some nominal appreciation," Rahman added.

NO MORE CURRENCY WAR? Emerging central banks have repeatedly slammed wealthier nations for keeping their own currencies weak while letting loose monetary policies inflate exchange rates elsewhere -- a standoff dubbed a "currency war" last year by Brazil.

Some currencies, such as the Thai baht and Chilean peso did rise last year. But many, from the Korean won to Brazil's real, were held down by curbs on foreign capital or central bank intervention.

So what has changed now?

Philip Poole, head of global and macro strategy at HSBC Global Asset Management says more policymakers are subordinating exchange rate worries to inflation control.

"One reason for not allowing appreciation earlier was concerns about growth, but the growth-inflation trade-off is changing," Poole said.

Growth is clearly on a more solid footing but all the data shows inflation rapidly becoming entrenched via wage pressures and factory input costs.

So central banks, initially dismissive of price pressures as being rooted in external food

and energy shocks, now appear more willing to raise rates.

As rates rise, FX market interventions are less appealing because it becomes costlier to sterilise dollar purchases.

Stronger currencies also mitigate external inflation by making it cheaper to import dollar-priced commodities such as oil, Poole said, adding: "Allowing currencies to appreciate is a good way to deal with imported inflation."

And crucially, China, against which developing country exports must compete, is showing appetite to let the yuan strengthen to combat its own inflation problem. The currency, up 4 per cent since June, is seen rising 5-6 per cent in 2011.

Not all currencies are equal, however. Investors will punish markets like Turkey that are seen as unwilling to crack

down on inflation, and steer clear of others such as Israel where the central bank is seen determined to curb shekel appreciation.

Winners are those gaining from a yuan rise -- JPMorgan's Bareau for instance likes Korean won, Philippine peso, Thai baht and Malaysian ringgit. A Reuters poll on Friday shows investors long all these currencies but bearish on the Indian rupee.

"It depends on whether you are hiking rates from a position of strength or weakness," said Claire Dissaux, investment strategist at Millennium Global. "Korean won for instance ticks all the boxes, with exports surprising to the upside, a currency that's undervalued by all metrics and strong external balances."

The losers for her are the rouble, due to Russia's fragile

growth, and India with its big current account deficit.

But what of bonds? Whether they continue to underperform depends on central banks' policy response, but the inflation data and rise in US yields do not bode well.

Total foreign flows to local emerging debt will be $107 billion this year, from $174 billion in 2010, JPMorgan predicts.

Bareau says there is little enthusiasm especially for buying long-dated bonds at the expense of shorter-term debt -the so-called curve-flattening trade, which implies faith central banks will be able to keep inflation in check.

"People are mostly cautious about engaging in flatteners," Bareau said. "You'd have to buy the fact that inflation has peaked, and no-one is convinced of that." -Reuters

Frontier investors ride out ME commotion L

ow correlations between the world's most esoteric stock markets are enabling many investors in frontier market indices to escape, or at least absorb, the turmoil in the Middle East relatively unscathed.

International debt securities in these countries are proving more prone to contagion, but equity investors are reaping some of the diversification benefits that frontiers promise.

As protests have spread across the Middle East and North Africa, causing the downfall of presidents in Tunisia and Egypt, investors have withdrawn money from the emerging markets universe at large. But they have continued to put more money to work in frontier equity funds in particular.

Data from fund tracker EPFR shows frontier market equity funds have enjoyed 36

straight weeks of inflows, while emerging equity funds lost $7 billion in one week earlier this month.

The MSCI emerging equities index has fallen 4 percent this year, underperforming global stocks, which have risen 4 percent .

But the MSCI frontiers index, which includes markets like Vietnam and Romania, as well as crisis-hit Lebanon, Bahrain and Tunisia, has fallen only 2 percent.

Investors are attracted to frontier economies because they tend to have high growth rates, and will one day grow up and turn into fully-fledged emerging markets.

But their low liquidity reduces the chances that upsets in one market will derail another, investors say.

"If you invest in a frontier fund, your risk is really not that great, because you're holding such disparate markets," said Sven Richter, head

of frontier markets at Renaissance Asset Managers.

As the correlation between emerging and developed markets becomes stronger, frontier markets' low correlation with their global peers presents an opportunity for investors wanting to diversify.

Emerging equity correlations with developed stocks over the past 26 weeks was 0.8, versus frontier markets' 0.49, ThomsonReuters data shows. A coefficient of 1 implies perfect correlation.

On top of their low correlation with the global economy, frontier markets show hardly any correlation with each other.

The MSCI Nigeria index's correlation to MSCI Vietnam, for example, is a mere 0.19, and even frontier markets in the same region are hardly correlated at all -- Nigeria's correlation to Kenya is a minimal 0.03.

This means that a lot of

volatility in a mixed frontier equity portfolio is simply diversified away.

NOT AT THE TOP While MSCI's emerging markets index has retraced the better part of its 2008 losses, most frontier markets are still trading well below 2007 highs.

After several setbacks -notably the 2009 Dubai debt crisis -- some investors are betting 2011 is the year fron-

tier markets begin to catch up.

"Some of these (frontier) markets are now getting into the phase where some of the larger emerging markets were 12 or 18 months ago, which is why investors are starting to look at them again," said Andrea Nannini, manager of the HSBC New Frontiers Fund.

Argentinian stocks, for example, hit a lifetime high last month and Estonian

stocks are at their highest in over three years, after Estonia joined the euro zone this year.

Frontier stocks are trading at a 20 percent discount to emerging on historical priceto-book multiples, according to data from Credit Suisse, leaving more room for upside.

DEBT WOES Debt markets may suffer more, with any new issuance on hold as investors reassess political risk.

It is looking unlikely that African states such as Zambia, Kenya, Tanzania, Uganda and Tunisia can go ahead any time soon with their debut Eurobonds.

Bahrain which had been hoping to issue an international bond in March-April will almost certainly have to postpone the deal.

Nigeria sold a long-awaited debut Eurobond in January for $500 million, following issues from Ghana and Gabon in 2007.

Prices of all these bonds have fallen, but particularly the Ghana and Gabon issues, which have seen yield spreads over U.S. Treasuries widen by as much as 80 basis points over U.S. Treasuries.

Many emerging market investors track benchmark bond indices which include all sovereign debt totalling $500 million or more.

Some have become unnerved, both by the Middle East events, and by the default earlier this month of a $2.3 billion bond issued by the world's top cocoa producer, Ivory Coast.

"Africa-focused funds know all the specific details and are quite aware of the difference between countries," said Samir Gadio, emerging markets strategist at Standard Bank.

"For global investors who bought the bonds as part of the index, the countries look alike." -Reuters

11

International & Continuation

Monday, February 21, 2011

Nato-Afghan guns massacre 64 Kunar civvies ASADABAD: Joint operations

by Afghan forces and NATOled foreign troops have killed 64 civilians in eastern Kunar province, including many women women and children, over the past four days, the provincial governor said.

"They were killed by ground and air strikes in Ghazi Abaddistrict," Fazlullah Wahidi, governor of Kunar province, told Reuters on Sunday.

Wahidi said 20 of the dead were women, 29 were children or young adults aged 7 to 20, and the remaining 15 were adult men.

SANAA: Anti-government protesters shout slogans during a protest. Supporters of Yemeni President Ali Abdullah Saleh Civilian casualties in NATOtried to break up a demonstration by opponents of the government on Sunday and shots were fired led military operations, often as unrest in the country entered its ninth straight day.-Reuters caused by air strikes and night raids, have long been a source of friction between the Afghan government and its Western partners.

Rules governing air strikes and night raids have been tightened significantly by NATOLOS ANGELES: Intel Corp led forces in the past two years, TUNIS: Tunisian security gans such as "Leave!" and "We in crime, and doing little to help plans to build a $5 billion, cut- leading to a sharp drop in civilting-edge microchip factory in ian casualties caused by such forces fired in the air on Sunday don't want the friends of Ben the poor.

The Interior Ministry said on Arizona by 2013, sharply incidents. in a vain attempt to disperse tens Ali!" Others were demanding Saturday that mass demonstra- ramping up its US manufacturof thousands of demonstrators in pay rises.

Mistakes still occur, although Security forces fired several tions were forbidden under state ing capacity as part of a major U.N. and other figures show the capital calling for a new interim government, a Reuters times in the air, while two mili- of emergency laws and protest- global expansion. that insurgents cause at least Construction should kick off tary helicopters circled low over ers could be arrested. witness said. in the middle of this year, it three-quarters of the civilian More than 15,000 protesters It was the second straight day the rally, the Reuters witness said in a statement. When com- casualties in Afghanistan. of mass protests in the North said. The protesters remained in clogged central Tunis on pleted, the plant will churn out The NATO-led International African country's main city, in place and there was no sign that Saturday, most of them chanting next-generation 14-nanometer Security Assistance Force anti-Islamist slogans after the line-width transistors and defiance of a government ban on anyone had been injured.

(ISAF) said in a statement a More than a month after Ben murder of a priest the govern- microchip wafers of 300 milrallies, after a lull following the team would investigate "allegapopular uprising last month Ali's departure -- which sparked ment blamed on "a group of ter- limeters. which overthrew President Zine a wave of protests elsewhere in rorist fascists with extremist tenIntel said in October it plans to the Arab world -- some dencies," and a series of Islamist spend $6 billion to $8 billion on al-Abidine Ben Ali. After weeks of relative calm, Tunisians accuse the caretaker protests against brothels. high-tech manufacturing faciliThe two days of protests end a ties in Arizona and Oregon, creas many as 40,000 marchers government charged with setting gathered in front of the prime elections of failing to provide stretch of relative calm in the cap- ating as many as 8,000 construcminister's building shouting slo- adequate security amid a surge ital since early February.-Reuters tion jobs.-Reuters

Tunisia forces fire in air, fail to end rally

Intel plans $5bn Arizona chip plant by 2013

CONTINUATION No #1

Continued from page 12

Anti-government protests met varying degrees of force in Yemen, Algiers and Djibouti, while an Egyptian court approved a new party in a landmark ruling. Authorities in Saudi Arabia detained activists trying to set up the kingdom's first political party.

Internet service has been cut off in Libya, but local Muslim leaders called on soldiers to stop killing fellow Muslims.

In Bahrain, a key US ally and home to the US Fifth Fleet, thousands of protesters celebrated as they poured into Pearl Square after riot police pulled out.

"We don't fear death any more, let the army come and kill us to show the world what kind of savages they are," said Umm Mohammed, a teacher.

Bahrain's government said it had opened a dialogue with opposition groups demanding reform. The crown prince called for a national day of mourning for the six people killed in this week's protests and appealed for calm.

"All political parties in the country deserve a voice at the table," Crown Prince Salman told CNN late on Saturday of the dialogue, adding the king had appointed him to lead it and to build trust with all sides.

"But there are other forces at work here. This is not Egypt and this is not Tunisia. And what we don't want to do, like in Northern Ireland, is to descend into militia warfare or sectarianism."

The uprisings sweeping through the region also reached the tiny Horn of Africa state of Djibouti, where three leading opposition politicians were detained on Saturday in a move to quash anti-government protests. -Agencies

No #2

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According to the Long War Journal, a leading military blog, the current pause in drone strikes is one of the longest since the United States intensified its drone campaign in 2008.

The United States and Pakistan do not publicly acknowledge the drone campaign in Pakistan's tribal areas, remote and mostly offlimits to journalists, but reports of the strikes filter out through local media and anonymous intelligence reports.

The New America Foundation, which tracks the strikes, estimated they have killed some 2,189 people from 2004 through January of this year. Of those, 1,754 were reportedly militants.

The last reported strike was January 23, when intelligence officials said a US drone aircraft fired two missiles targeting a vehicle and a house in the North Waziristan tribal region on the Afghan border, killing at least four militants. -Reuters

No #3

Continued from page 12

Japan has actively participated in the Friends of Democratic Pakistan Forum, and hosted the FODP Ministerial and Donors Conference in Tokyo in April 2009.

The visit by the President would further strengthen the cordial relations between our two countries and open new avenues of cooperation. -Online

No #4

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Meanwhile, talking to his party office bearers and media, after his recent trip from Bangladesh and India, Maulana Sahib informed that he had also discussed Kashmir among all other issues with Indian Foreign minister at Bhutan's foreign secretaries' moot, and convinced the Indian high official to deliberate the issue more openly and effectively.

Maulana Fazlur Rehman also stressed on the government to adopt a more pragmatic, rather than a submissive attitude in killer American, Raymond Davis' case; as he was definitely not a diplomat but a mercenary and terrorist.

Replying to a question, he termed PML-N's role as a hindrance in opposition's broader interests and functioning, and while answering to another question, said that JUI would side with opposition, while supporting all positive initiatives of the government.

The secretary information JUI, Maulana Muhammad Amjad who also spoke on the occasion, lambasted the American government's deliberate neglect of Dr. Aafia Siddique case, while

supporting its killer, Raymond Davis.

He said that John Kerry, who was busy seeking release of his killer citizen, should also think about three innocent lives lost; and while declaring that Shah Mahmood Qureshi was terminated as foreign minister, due to his truth over Raymond Davis case, hoped that the former foreign minister would disclose more startling facts in times to come. -Online

No #5

Continued from page 12

Security of the Supreme Court is beefed up where extra safety measures are taken to avoid any untoward incident. Walk through gates and other security equipments are installed including additional jamming devices and CCTV cameras. Special passes for concerned lawyers and journalists have been issued. -Online

No #6

Continued from page 1

NATO/ISAF troops and the international community, in a broader sense, are engaged on issues germane to Afghanistan.

"We applaud Secretary Clinton's call to respect the principles of non-interference and non-intervention. The sovereignty, unity and territorial integrity of Afghanistan must also be fully respected," the spokesperson stated. "We welcome Secretary Clinton's announcement on the appointment of Marc Grossman and wish him success," she added.

Furthermore, while commenting on US Secretary of State Hillary Clinton's remarks at the launch of the Asia Society's series of Richard Holbrooke Memorial Addresses in New York, FO spokesperson said Pakistan values its relations with the United States and is cognisant of the need for greater strategic coherence especially when a large number of ISAF troops and the international community are engaged on issues germane to Afghanistan.

The Spokesperson said, "It is Pakistan's considered view that stability, peace and development in the South Asian region is not only important for Pakistan but has global ramifications."

She said Pakistan has reached out to both Afghanistan and India to promote an environment conducive to stability and development."

"It is imperative that the international community support this endeavor."

The Spokesperson said, "We applaud Secretary Clinton's call to respect the principles of noninterference and nonintervention. The sovereignty, unity and territorial integrity of Afghanistan must also be fully respected."

She said, "We welcome Secretary Clinton's announcement on the appointment of Marc Grossman and wish him success."

No #7

Continued from page 1

registered a substantial growth of 392 per cent whereas spices import increased by 65.6 per cent, palm oil import increased by 61.1 per cent and tea import bill registered an increase of 25.6 per cent over the corresponding period of last fiscal year.

Furthermore, machinery group import bill increased 2.4 cent to $3.13 billion against $3.06 million over the previous year same period.

The major surge in this sector witnessed from textile machinery which hiked 102 per cent to $284 million versus $140 million witnessed in same period last year.

Interestingly, at the time when Pakistan economy was facing double digit inflation since last three years, and country's growth is projected around 2.5 per cent of GDP, mobile phone import significantly rose 86.3 per cent to $285 million in 7MFY11 against $153 million in 7MFY10, reflecting the rising demand of the citizens despite soaring inflation.

No #8

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is also heading the PML-N Committee interacting with the government equal number ministerial Committee. Later on the IMF had conveyed to the government of Pakistan that it would resume the loan programme if the government wins PML-N support to the committed economic reforms.

Essential measures forming the primary conditionality of the IMF include the Reform General Sales Tax (RGST), the restructuring of the large state-owned entities by withdrawing subsidies, and complete autonomy of the central bank.

tions of ISAF-caused civilian casualties" during operations in Kunar, which it said were carried out in a remote and rugged area.

It said it was aware of Wahidi's comments "that coalition forces killed more than 50 civilians," and that ISAF reporting and weapons system video showed 36 armed insurgents were killed.

"We take allegations of civilian casualties very seriously.

We are conducting an immediate assessment of these allegations and will report our findings," US Army Colonel Patrick Hynes, a senior ISAF spokesman, said in the statement.

"UNKNOWN NUMBER" ISAF said on Friday that more than 30 insurgents had been killed in an overnight mission in Kunar, and on Saturday that operations had been going on in Ghazi Abad since February 16.

An earlier ISAF statement on Sunday said ISAF had engaged an "unknown number of insurgents" in two separate operations and attacked with smallarms fire and air strikes. The coalition also said earlier seven civilians may have been wounded.

Videos taken by Reuters television in a hospital in the provincial capital, Asadabad, showed two chil-

dren being treated for leg wounds alongside two wounded women.

"There has been ongoing operations in different parts of Ghazni Abad for the last three days," said a man who identified himself as Ibrahim, a resident in Elgal village in Ghazi Abad.

He said "bombardments" had killed 12 men, about 30children and 10 women. Another villager, Farhad, said 62 civilians had been killed.

Ghazi Abad has long been a restive area. Afghan and ISAF officials say insurgents launch attacks and then hide in the remote and rugged valley in which Elgal nestles.

There have been several recent attacks on ISAF and Afghan convoys on a tiny rode that snakes through Elgal.

A United Nations report late last year found that civilian casualties in Afghanistan rose 20 percent in the first10 months of 2010 compared with 2009, with more than three-quarters killed or wounded by insurgents.

The report found that there were 6,215 civilian casualties in the period, including 2,412 deaths. Those caused by Afghan and foreign "pro-government" forces accounted for 12percent of the total, an 18 percent drop.-Reuters

Yemen separatist leader arrested, protests draw fire

ADEN/SANAA: The leader of Yemen's secessionist Southern Movement was arrested in Aden and shots were fired at a demonstration in Sanaa on Sunday as unrest hit the impoverished Arab country for a ninth consecutive day.

Thousands of people also staged sit-ins in the cities of Ibb and Taiz, demanding the departure of President Ali Abdullah Saleh, who renewed his call for opposition parties to pursue a dialogue with the government.

Saleh, a US ally battling a resurgent al Qaeda wing based in Yemen, has held power for 32 years in an Arabian Peninsula state that faces soaring unemployment, dwindling oil and water reserves, and chronic unrest in northern and southern provinces.

Hasan Baoum was arrested in the southern port city by an "armed military group" in a hospital where he was receiving treatment and was taken to an unknown location, his youngest son Fadi Hasan Baoum told Reuters.

Baoum was also arrested in November last year, accused of planning illegal demonstra-

tions.

Security in Aden was stepped up on Sunday with tanks and armoured vehicles out on the city's main streets.

In the capital, as many as 50 government supporters tried to break up a demonstration outside Sanaa University by more than 1,000 protesters.

A Saleh supporter fired shots from an assault rifle but there were no reported casualties and the government supporters soon dispersed, while the protesters continued their demonstration chanting, "Leave, Ali!" Both sides fired weapons on Saturday outside the university -- the first reported use of firearms by demonstrators.

Several protesters were hurt in those clashes and five people including young girls were wounded in the southern town of Sheikh Othman, apparently by stray bullets.

Five soldiers were wounded on Saturday evening in Khormaksar and Sheikh Othman when protesters clashed with security forces, a local official and witnesses said on Sunday. In the southern city of Ibb, around 1,000 protesters

set up camp in Freedom Square waving banners which read "Leave" and "The people want the fall of the regime", witnesses said.

In Taiz, thousands continued a sit-in for the ninth straight day. Twelve Yemeni human rights organisations demanded the sacking and trials of security officials in Aden, Sanaa and Taiz because of their role in attacks against demonstrators, according to a statement seen

by Reuters.

Saleh on Sunday renewed his call for opposition parties to continue their dialogue and blamed the last two days of protests, in which five people were killed, on "elements outside the system and the law".

"Dialogue is the best way.

Not sabotage. Not blocking the roads," he told tribal, military and civil leaders in Sanaa.

On Saturday he blamed a "foreign agenda" and a "conspiracy against Yemen, its security and stability" for the string of protests against poverty, unemployment and corruption which have gained momentum since the uprisings in Tunisia and Egypt.-Reuters

"Even if the government and the PML-N reach a consensus on revenue measures other than RGST, the IMF would value it as viable alternate and would consider resumption of the programme allowing release of next tranche," the sources observed sensing the Fund's mood after meeting its last delegation here.

Therefore the sources were apprehensive that current frictions between the PPP and the PML-N threatening discontinuation of the so-called joint venture of addressing national issues would further complicate situation for the IMF. The Fund in that sort of a chaotic scenario with the PPP and the PML-N gone at loggerheads would hesitate in releasing anymore tranches of the SBA loan," the sources added. -Online

No #9

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increase in urea prices would be revoked if gas was restored to the fertiliser industry as committed in the Fertilizer Policy.

This commitment was made by the representatives in a meeting held in the Ministry of Industries and Production last month to discuss the price situation of urea in the country, the official said.

Regarding import of fertilizer, a senior official of the Ministry said that the country would be selfsufficient in urea production after coming into production of the under construction Engro Urea Plant having a total capacity of 1.3 million tonnes.

Meanwhile, a study was conducted for planning to meet the country's future needs which recommend establishing a new Urea/DAP plant based on the findings of Arthur D Little study by 2015, such a plant would be most viable if located at port, the official said. -Agencies

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forces have found two dead bodies from Datta Khel road in North Waziristan. -Agencies

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Davis, accused of killing people in Lahore.

Officials were reluctant to reveal any schedule of Prime Minister's meeting with Nawaz Sharif; the sources insisted that meeting the PML-N leadership was the primary purpose of Gilani to Lahore on Sunday. The officials confirmed that the Premier would stay in Lahore for Sunday night and on Monday he would visit Bahawalpur. -Agencies

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size marginally up by 0.11 per cent MoM to Rs50.01 billion till January 2011.

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$6.90 million, $3.72 million, $1.29 million and $0.80 million respectively.

On the other hand, companies and mutual funds cumulative sold $16.23 million worth of sales on net basis.

As per detail, biggest weekly selling were witnessed from companies which sold $66.74 million of shares in the local bourse against the buying of $57.85 million, thus turning the net selling worth of $8.89 million. Moreover, mutual funds also net ejected $7.34 million.

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Bahrain begins talks with Oppostion President embarks on visit to Japan today

ISLAMABAD: President PML (Q) Chaudhry Shujaat Hussain talks to the media men at his residence after the meeting with a delegation of British Parliamentarians led by Lord Nazir Ahmad. Chairman Kashmir Committee in NA Maulana Fazl-ur Rehman, Mushahid Hussain and others are also present. Online

Drone strikes stopped after Davis detention ISLAMABAD: The United States has halted drone attacks on militants along Pakistan's western border in a development analysts believe is linked to US attempts to secure the release of a jailed US consular employee.

After months of frequent strikes from unmanned US aircraft on militant hideouts in tribal areas on Pakistan's border with Afghanistan, where bloodshed has hit record-level, reports of covert strikes have gone quiet for over three weeks.

Many analysts believe Washington has stopped the attacks to avoid further inflaming anti-American fury in Pakistan just as it pressures a vulnerable Islamabad government to release Raymond Davis, a US consulate employee imprisoned after shooting two Pakistanis last month during what he said was an attempted robbery.

"This in itself raises a number of questions regarding the US Pakistan strategy as it struggles to balance counter terrorism with its public diplomacy," said Simbal Khan, an analyst with the Institute of Strategic Studies in Islamabad.

The decision to halt a campaign that is the centerpiece of US efforts to root

out militants launching attacks on its soldiers in Afghanistan also raises questions, Khan said, "about how chasing after terrorist and al Qaeda targets can be suspended to save the fate of a single US national."

As tempers fray over Davis, who the United States insist is shielded by diplomatic immunity, the government of President Asif Ali Zardari is loathe to risk losing billions of dollars in US aid or doing permanent damage to ties with a key Western ally.

Yet neither can Pakistan afford to unleash popular fury in a case that has galvanized anti-American sentiment.

The strikes have already fuelled anger against the government among those who see the attacks as a violation of Pakistani sovereignty and blame them for the death of innocent civilians. Local leaders are often the ones seen at fault.

"It's possible that Washington thinks it shouldn't give the Pakistani public yet another reason to whip up antiAmerican sentiment even as the Davis case is being dealt with," said Samina Ahmed, South Asia project director for the International Crisis Group.

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‘Its time to act upon UN resolutions’

Talked enough on Kashmir, says Fazl ISLAMABAD: Welcoming the Pakistan-India dialogue over Kashmir, the chairman for Parliamentary committee on Kashmir, Maulana Fazlur Rehman has stressed that mere dialogues were useless, until India is made to realize the fact that it should act in UN resolutions.

Maulana Fazlur Rehman expressed his opinion to British delegation led by lifetime member of British House of Lords, Lord Nazir Ahmad, at a luncheon hosted by PML-Q president Chaudhry Shujaat Hussain.

Talking to media after the luncheon and meeting with the British delegation, Maulana Fazlur Rehman disclosed that during his recent Indian visit, he had discussed the Kashmir issue with Indian PM. He strongly rejected that there was any armed resistance in Indian occupied Kashmir, and also negated the

illusion that Pakistan was backing any 'dissidents'.

Thanking the British Parliament for its efforts to resolve the thorny core issue of Kashmir, he said that Britain knew above all, as to what exactly had caused the Kashmir issue to go wrong; he hoped that Britain would carry on its support of the Kashmir issue.

PML-Q leaders, Chaudhry Shujaat Hussain and Syed Mushahid Hussain also stressed on the British delegation to raise its voice in favor of the oppressed and subjugated Kashmiris in British parliament.

Speaking on the occasion, the leader of the British delegation, Lord Nazir assured that Kashmiris' voice would be heard one day, and assured that all wanted that the right of self-determination should be given to Kashmiris.

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Rahat returns home today NEW DEHLI: Rahat Fateh Ali Khan and his manager Maroof Ali have been fined Indian Rs1.5 million each under Customs Act of India for carrying undeclared foreign currency.

Khan and his manager Ali were caught at the Indira Gandhi International Airport on February 13 for carrying an undeclared sum of $142,000 in cash and cheques when they were about to board a flight to Lahore. After detaining the two at the airport, a team of the Directorate of Revenue Intelligence (DRI) raided two premises of event manager Chitresh Srivastava in Mumbai, which resulted in the recovery of around Rs5 million.

All the organisers who paid to Khan for his shows in India would face action under Customs Act. After completion of probe by the DRI, the matter was sent for adjudication to additional commissioner (customs) Ashutosh Baranwal. -Agencies

ISLAMABAD: President Asif Ali Zardari will pay a three-day visit to Japan from Monday (today) at the invitation of His Excellency Naoto Kan, Prime Minister of Japan. This will be the President's second visit to Japan since assuming office.

According to Foreign Office spokesman during his stay in Japan, the President will make a state call on His Majesty the Emperor of Japan.

He will hold summit level talks with Prime Minister Naoto Kan. The President is also scheduled to meet with Japanese Cabinet members, Parliamentarians and leading Japanese businessmen.

The visit will provide an opportunity to brief the Japanese leadership on our views on key international and regional issues as well as discuss ways and means to further expand bilateral political and economic ties.

The visit will also reiterate the importance that Pakistan attaches to its relations with Japan.

President's meeting with the Japanese businessmen will help project Pakistan as a destination for Japanese investment, he said.

Japan is an important country of the East Asia Pacific region as well as one of the major trading partners of Pakistan.

Japan has played an important role in the socioeconomic development of Pakistan. Japan is a major development partner, and is extending assistance for development projects in health, education and human resource development areas.

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Libya unrest death toll tops 200

CAIRO: A doctor in the Libyan city of Benghazi says his hospital has seen the bodies of at least 200 protesters killed by Moammar Gadhafi's forces over the last few days. The official spoke on condition of anonymity because he fears reprisal.

Witnesses told a mix of special commandos, foreign mercenaries and Gadhafi loyalists assaulted demonstrators on Saturday with knives, assault rifles and heavy weapons. Those protesters were burying 35 marchers who were slain Friday by government forces.

Benghazi has been a center of a six-day revolt by Libyans inspired by uprisings in Egypt and Tunisia and frustrated by Gadhafi's more than 40 years of authoritarian rule.

The doctor said the hospital, one of two in Libya's second-largest city, is out of supplies and cannot treat more than 70 wounded who were hit in the attacks and need attention.

"I am crying," the doctor said. "Why is the world not listening?"

Getting concrete details about the protests in Libya has been difficult because journalists cannot work freely inside the country.

Information about the uprising has come through telephone interviews, along with videos and messages posted online, and through opposition activists in exile.

Meanwhile, Libyan security forces shot dead dozens of protesters to try to crush a revolt in the second city Benghazi, and the wave of unrest sweeping the Middle East also pushed Bahrain's rulers into talks with the

opposition.

Anti-government demonstrators in Bahrain camped out overnight in Pearl Square in Manama after putting riot police to flight in a striking victory, confidently setting up camp for a protracted stay.

In Libya's eastern city of Benghazi, a witness told Reuters snipers had fired at protesters from a fortified compound.

"Dozens were killed. We are in the midst of a massacre here," said the resident, who did not want to be named. The man said he helped take the victims to a local hospital during Saturday's violence.

The Libyan authorities have not allowed foreign journalists into the country since the protests against Gaddafi erupted, and the witness' account could not be independently verified.

Human Rights Watch says 84 people have been killed in Libya since the protests began, reflecting the ferocity of the security crackdown mounted in response to anti-government protests that sought to emulate uprisings in neighboring Egypt and Tunisia.

Britain's Independent on Sunday newspapers said the death toll in Benghazi -1000 km (625 miles) east of the capital - may be as high as 200.

Unverified posts on social network sites referred to minor skirmishes in the capital and of overnight gunfire in Nalut, to the west of Tripoli.

Unrest has also been seen in Yemen, Oman, Kuwait and Djibouti as people took to the streets demanding political and economic change.

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Colonel Imam's body found MIRANSHAH: The dead body of Col Imam, whose killing by Tehreek-e-Taliban was shrouded in quite a controversy for months, has finally been discovered alongside a South Waziristan roadside.

Media reported that he was abducted on March 2, 2010, along with two others, and his video had been released Saturday, in which the head of Tehreek-e-Taliban, Hakimullah Mehsud was filmed as announcing the death sentence over ransom demands not being fulfilled.

Col Imam and two others, British journalist Asad Qureshi and former intelligence operative Khalid Khwaja had tried to penetrate Waziristan's forbidden borders in order to film a documentary and meet Taliban leaders.

The abductors had freed the British journalist, Asad Qureshi, but had killed Khalid Khwaja, earlier.-Online

PCO judges’ contempt case hearing starts today ISLAMABAD: Supreme Court 7member bench leading by Chief Justice Iftikhar Muhammad Chaudhry will hear contempt of court case proceedings against PCO judges and leveling charges against them.

During its short verdict earlier this month, 4-member bench of the apex court had issued notices to seven PCO judges out of nine and advised to level charges against

them on 21st February.

Bench also requested the honorable Chief Justice Iftikhar Muhammad Chaudhry to hold further proceedings of this case through a different bench chaired by him.

Chief Justice Iftikhar Muhammad Chaudhry set up a new seven-member bench in his own chair following the sensitivity of the case.

New bench will also analyze the

circumstances pertaining to issuance of notices to generals including former President General (Retd) Pervez Musharraf and Prime Minister Shaukat Aziz.

Justice Hasanat Ahmed and Justice Shabbar Raza Rizvi had filed petition in the court for serving the notices to generals allegedly committing the contempt of court.

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