The Financial Daily-Epaper-22-11-2010 by The Financial Daily

International Karachi, Monday, November 22, 2010, Zil Hajj 15, Price Rs12 Pages 12

Nadra to computerise weapons permits: Mirza

Taliban says Nato early pullout unwise

See on page 12

Nato's hasty exit plan worries Pakistan

See on page 12

Pak, US striving to bring breadth to ties: Haqqani See on page 12

See on Page 2 Economic Indicators $16.95bn 14.17% $7.17bn $12.25bn $(5.08)bn $(533)mn $3.50bn $455.10mn Rs 411bn $58.41bn Rs 4863bn $124.90mn -3.85% 4.10% $1,051 171.10mn

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

GDP Growth FY10E Per Capita Income FY10 Population

Portfolio Investment SCRA(U.S $ in million)

145.61 Yearly(Jul, 2010 up to 15-Nov-2010) Monthly(Nov, 2010 up to 15-Nov-2010) 40.89 3.39 Daily (15-Nov-2010) 2589 Total Portfolio Invest (5 Nov-2010)

NCCPL (U.S $ in million)

FIPI (16-Nov-2010) Local Companies (16-Nov-2010) Banks / DFI (16-Nov-2010) Mutual Funds (16-Nov-2010) NBFC (16-Nov-2010) Local Investors (16-Nov-2010) Other Organization (16-Nov-2010)

1.26 0.25 0.36 -0.28 -0.36 -1.14 -0.10

Global Indices Index KSE 100 Nikkei 225 Hang Seng Sensex 30 ADX SSE COMP. FTSE 100 Dow Jones

Close 10,966.00 10,022.39 23,605.71 19,585.44 2,748.92 2,888.57 5,732.83 11,203.55

Change 56.35 8.76 31.68 345.20 9.52 23.12 35.88 22.32

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 2.60 110.98 19.20 163.91 2.00 42.69 1.70 36.28 10.39 35.48

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

03-Nov-2010 03-Nov-2010 03-Nov-2010 29-Sep-2010 16-Nov-2010 16-Nov-2010 16-Nov-2010 16-Nov-2010 16-Nov-2010 16-Nov-2010 16-Nov-2010 16-Nov-2010 16-Nov-2010 16-Nov-2010 16-Nov-2010

12.75% 13.11% 13.24% 13.50% 12.66% 12.99% 13.26% 13.63% 13.71% 13.64% 13.73% 13.82% 14.22% 14.33% 14.50%

Commodities Crude Oil (brent)$/bbl 84.34 Crude Oil (WTI)$/bbl 81.98 Cotton $/lb 123.15 Gold $/ozs 1,352.30 Silver $/ozs 27.18 Malaysian Palm $ 1,040.00 GOLD (NCEL) PKR 37,160 KHI Cotton 40Kg PKR 9,109

Open Mkt Currency Rates Symbols

Buy (Rs)

Australian $ 84.60 Canadian $ 84.70 Danish Krone 16.00 Euro 118.60 Hong Kong $ 10.95 Japanese Yen 1.014 Saudi Riyal 22.60 Singapore $ 65.70 Swedish Korona 12.95 Swiss Franc 87.30 U.A.E Dirham 23.00 UK Pound 136.60 US $ 85.30

Sell (Rs)

84.70 84.80 16.50 119.10 11.15 1.040 22.80 65.80 13.10 88.30 23.20 137.10 85.70

Inter-Bank Currency Rates Symbols

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

Buying TT Clean

Selling TT & OD

84.09 84.59 15.58 116.16 11.00 1.027 22.75 65.69 12.42 86.74 23.22 137.03 85.37

84.29 84.79 15.62 116.43 11.03 1.030 22.80 65.84 12.45 86.94 23.28 137.35 85.56

Weather Forecast CITIES

ISLAMABAD KARACHI LAHORE FAISALABAD QUETTA RAWALPINDI

MAX-TEMP

25°C 33°C 26°C 25°C 18°C 26°C

MIN

9°C 15°C 11°C 9°C -4°C 10°C

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Ashraf, Qaim jointly inaugurate power plant

232MW power ship switched on Plant to help minimise energy crisis: Ashraf 2500MW from Engro in next two yrs: Qaim Staff Reporter KARACHI: The biggest ship power plant of the world with a generation capacity of 232 megawatt electricity was switched on Sunday here at Karachi Port by Sindh Chief Minister Syed Qaim Ali Shah and Minister for Water and Power Raja Pervaiz Ashraf jointly. On the occasion, Raja Ashraf said plant would help minimise power crisis in Karachi while CM Qaim said government would also receive 2500MW electricity during the next two years from Engro under an agreement. Addressing the ceremony, the Federal Minister Raja Pervaiz Ashraf said that this ship has the state-of-the-art power plant which would supply power to

Karachi while meeting all international environmental standards. He said the plant would help minimise power crisis in Karachi. The Minister described the plant as a symbol of PakTurkey friendship. He said the government is determined to strengthen the governance and the regulatory framework in the energy sector through capacity building in the power companies, Nepra and the Ministry while tariff rationalisation and elimination of subsidy remains our target. Federal Minister admitted that electricity to be generated by the Turkish power plant would be expensive as plant would use furnace oil for its 70 per cent electricity generation. He refuted the impression that Karachiites would have to

Govt in a tight spot on RGST ISLAMABAD: The government is known to be facing great difficulties in manipulating the GST (general sales tax) reforms Bill 2010, according to its whims. The 3-day meeting of the standing committee for finance was scheduled to be convened on 22 Nov 2010, by chairman Senator Ahmad Ali and would review the GST-Reforms Bill 2010 and prepare committee's recommendations in NA session commencing on 23rd Nov, where its approval would also be sought. Sources have informed that there was a possibility of gov-

ernment enjoying the support of only four committee members out of a total of 13, in asserting its agenda. The remaining nine, which include MQM, PML-Q, JUI(F), PML-N and JI members, arrayed against the Bill, are likely to give quite a tough time to government's aspirations regarding GST reforms. However, not sitting idle, the government has also hastened its ministerial efforts to win over the reservations and grievances of its coalition partners, ANP, MQM and JUI, regarding the controversial Bill. -Online

Oct spreads up 8bps YoY Ahmed Siddique KARACHI: Weighted average banking spread have surged by 8bps YoY in the month of October, mainly led by fall in deposit rate, according to data released by the State Bank of Pakistan (SBP). Average spreads of the banks in the country reached 7.49 per cent in October 2010 against 7.41 per cent witnessed in same period last year. During the month, outstanding loans issued by banks were

charged an average interest rate of 13.32 per cent (including zero mark-up) while outstanding deposits were rewarded at an average rate of just 5.83 per cent (including zero mark-up). If we compare on MoM basis, the spread dipped 8bps where they were 7.57 per cent in September 2010. Cost of deposits increased by 6bps at 5.83 per cent while they were 5.77 per cent in previous month. However, lending cost dipped by 2bps on monthly basis to 13.32 per cent.

bear a price as high as Rs17 per unit of electricity due to the supply of power from the above RPP. The 232MW power to be produced by the plant for next three years would be added to the national grid but it would be allocated exclusively for Karachi, he added. Raja Ashraf said that Pakistan paid no advance for the plant which was built in Turkey. He also announced that inauguration of Diamer Bhasha Dam will be held next month. Officials of Private Power Infrastructure Board (PPIB), Ministry of Water and Power and the representatives of the Turkey based power ship 'Kaya Bey' also attended the ceremony. Meanwhile talking to the media persona after inauguration ceremony, Federal See # 7 Pate 11 Corporate Governance Code

SECP extends deadline till December 5 ISLAMABAD: In order to accommodate the concerns and views of all stakeholders adequately, the Securities and Exchange Commission Pakistan (SECP) has extended the deadline to December 5, 2010 for submitting comments on the amended Code of Corporate Governance. This has been done to give the stakeholders ample time to provide their valuable inputs. The SECP launched a consultation process on October 6 to reform the 2002 Code of Corporate Governance. The code had been revised taking into account the lessons learnt from the practical issues and considerations relevant to the listed companies and to ensure that it reflects changing governance concerns, practices and economic circumstances. -APP

6 killed in NWA drone strike MIR ALI: At least six persons including three militants have been killed in US spy strikes at North Waziristan here on Sunday. According to media reports US spy plane fired four missiles at a house in Khadi Village of North Waziristan killing six persons including three militants. -Online

KARACHI: Sindh Chief Minister Syed Qaim Ali Shah addressing at inaugurating ceremony of first rental power plant at Karachi Port Trust. APP

29 wells targeted for FY11, only 5 spudded in 4M

E&P drilling below target Ghulam Raza Rajani KARACHI: Exploration and Production sector was able to drill only 5 exploratory wells during 4MFY11 -- against the annual target of 29 wells -while 6 exploratory wells were drilled during the same period of last year. On the other hand, 8 developmental and appraisal (D&A) wells have been drilled -against the full year target of 51 wells - while 7 wells were drilled in the same period last year. Province-wise breakup of the activity reveals that exploration activity was skewed towards

Sindh, with 3 wells being spudded in the province. The other 2 wells were drilled in Khyber-Pakhtunkhwa (KP). However, the activity was restricted only to one operator MOL in the Tal Block. Developmental activity also predominantly took place in Sindh with 5 wells drilled in the province; while 1 each was drilled in the other three provinces of the country. As per research analyst of InvestCap, country's E&D activity remained subdued mainly due to (1) rigs still being engaged in last year's designated E&D activity, (2) See # 4 Page 11

Short Term Saving Certificates' from 1st Dec

NS scheme for small investors KARACHI: The government would start issuing 'Short Term Saving Certificates (STSC)' from December 1, 2010 in which Rs10000 (ten thousand) has been fixed as the minimum limit for investment. In an interview to a private TV channel here in Karachi, Director General (DG) Zafar Sheikh of National Saving Central Directorate has said that the small investors can have an opportunity of enter-

prise under STSC for shortterm tenure of three, six and 12 months, while the percentage of profit would be approximately in between of 12 to 12.5 per cent. He said that under this shortterm programme of investment even a common man would get a chance of investment while Overseas Pakistani can also avail opportunity in all saving certificates online, however, it would be started from early next year. -Online

KSE last wk

Offshorers shop $2.87mn shares Amir Abdi KARACHI: The buying momentum of offshore investors continued in first two trading day of the last week in the local bourses as it attracted fresh net inflow of $2.87 million, as per the National Clearing Company of Pakistan Limited (NCCPL) data. On the other hand, positive activities continued at local bourses as KSE 100-Index closed up 0.85 per cent or 91.98 points at 10,966. Weekly average volumes plunged 58.2 per cent to stand at 69.47 million shares versus See # 5 Page 11

Iran to hike N-output despite possible talks TEHRAN: An Iranian lawmaker dealing with foreign policy said on Sunday Iran will increase its production of nuclear fuel despite a possible resumption of talks with major powers over its disputed uranium enrichment programme. Iran will probably try to blunt international pressure on it to curb enrichment once it resumes talks with the United States, Russia, China, Britain, France and Germany. The venue and agenda of the talks have yet to be agreed upon. "Iran will increase the production of nuclear fuel to secure its needs," Esmail Kowsari, a member of parliament's national security and foreign policy committee, was quoted as saying by the semi-official Mehr news agency, without giving details. -Reuters

Pak Hajis woes

SArabia agree on compensation ISLAMABAD: Pakistan Religious Affairs Minister Hamid Saeed Kazmi has said that the Saudi authorities have decided to payback 250 Riyals each to 25000 Pakistani Hajj pilgrims for insufficient facilities and arrangements. Talking to media Sunday Federal Minister Hamid Saeed Kazmi said he called on Saudi Hajj Minister Fawad al-Farsi and highlighted about the problems faced by the Hajj pilgrims from Pakistan. The Saudi government has announced to pay 250 Riyals each to 25,000 pilgrims staying at Maktab 49 to 54, Kazmi said. Kazmi said that the Saudi government would give the money within two days. He further added that Pakistan and Saudi Arabia friendship and ties are time tested and long lasting. The See # 6 Page 11

Irish finmin recommends Cabinet to apply for EU, IMF programme

Ireland eyes 100bn euros in bailout DUBLIN: Irish Finance Minister Brian Lenihan said he would recommend to cabinet that government should apply for a financial bailout programme from the EU and the IMF. Ireland's cabinet was to hold an emergency meeting to finalise a four-year deficit crisis plan seen as key to winning the international bailout and easing fears about the future of the euro. "There will be a meeting of the government, I will propose

to my colleagues that we should formally apply for a programme," Lenihan told RTE state radio. He did not specify the size of the bailout, but agreed it would run to billions of euros. "Certainly, it will not be a three-figure sum," he added. Media reports suggested the bailout package was thought to be around 100 billion euros. Irish officials have been holding a fourth day of tense talks with the European Union, the European Central Bank and

the International Monetary Fund on financial assistance. "Obviously, the government will have to look at the various considerations involved but as the responsible minister I believe it is important that this state continues to fund itself in a stable way," Lenihan said. "That economic continuity is preserved, that there is no danger to the borrowing which the state requires to make in its own interest and also, and above all -- and the issue that has been highlighted this week

-- that our banking sector is stabilised. "So, for all these reasons I will be recommending to the government that we should apply to a programme and open formal negotiations." Lenihan said market conditions had been very difficult since late August. Lenihan said the government had decided last Tuesday, before the eurozone ministers' meeting in Brussels, "to open this process of intensive discussion about the issues". Reuters

2 PU hand outs Rs15mn goods to affected LAHORE: Punjab University faculty members and volunteer students have spent a sum of Rs 14.7 million for the provision of dry ration, tents, quilts and other relief goods to the flood victims through Relief Camp set up at Shah Jamal district Muzzafargarh during Eid-ul-Azha. Paying tributes to the teachers and students who celebrated Eid with flood victims here on Sunday, the PU Vice Chancellor Prof Dr Mujahid Kamran said the varsity faculty and students are now extending fullest cooperation and assistance to the small farmers to bring maximum area of their farming fields under plough in mauza Kuccha Kanjer of the district under the Umeed-e-Bahar programme during the ongoing Rabi season. He said the faculty and student-aided cultivation activity is in full swing and so far 50 acres of land has been cultivated, for which the landowners were supplied high quality seed, fertilizer and agriculture insecticides free of cost.

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

Monday, November 22, 2010

Pakistan economy looks to banks for bail-out: PEW ISLAMABAD: The Pakistan Economy Watch (PEW) on Sunday said banks should play their role in development of economy while government should limit borrowings to pave way for affordable private sector credit. Pakistan was not formed for banks rather banks were established to help develop economy. Sole aim of SBP policies should be to help boost economy, it said. Banks are acting in a way that is not helping economic development, said Dr Murtaza Mughal, President PEW, adding that regulatory bodies should try to improve situation. He said that almost all the sectors

n Unemployment demands immediate shift in banking policies n Govt should limit borrowing to pave way for private sector n Imposing RGST on all textile exports to destroy sector of economy are showing dismal performance due to terrorism, inflation, uncertainty and energy shortages but the profit of banks is increasing. Banks earned over Rs50 billion in first nine months of this calendar year while their earning stood at Rs45 billion last year, he said. Dr Murtaza Mughal said that banks would continue to ignore pri-

unemployed workforce demands an immediate shift in policies of banking companies and supervisory bodies otherwise plans to reduce poverty will never be realised, he said. Many exporters are refusing orders due to high interest rates while the textile sector is major looser that provide one billion dollar

Motorway Police holds pro-public campaign ISLAMABAD: National Highways and Pakistan Motorway Police N-5 North Zone held a public friendly policing campaign on Sunday afternoon aiming to introduce the concept of soft policing and providing safe passage to the road users and to enhance the standard of services of NH&MP. During the four hours soft policing campaign, all patrolling mobiles including recovery vehicles and ambulance service vehicles were utilized to provide maximum and instant help to the distress road users during Eid Holidays. DIG Abbas Hussain Malick distributed gift packs among the road users and children. DIG also added that special patrolling squads have

been used including extra staff for the safety of the road users so that they could reach home safely after enjoying the blessings of Eid. He said that people are coming back after spending Eid Holidays and in this regard extra patrolling staff has been used to avoid any untoward situation. He said that NH&MP N5 North zone provided a safe passage to road user and all the SSPs, DSPs DSP headquarters and patrolling staff have been directed to remain on patrolling and monitor the flow of traffic. Special briefing had been imparted by the mobile education unit at Mandra, Sangjani, Taraki and Jhelum toll plazas and road safety stalls were also

arranged there including Islamabad-Muzaffarabad dual carriage way. Special briefing regarding upcoming foggy season has been delivered to the road users. Keeping in view the importance of soft and friendly policing, during the time of this campaign, no challan was issued and road users were briefed to ensure public friendly environment. Road users were briefed about the road violations. Abbas Hussain Malick DIG N-5 North said that the purpose of this campaign is to reduce the gap between police and public. Further he said that to create a sense of public friendly policing among the people, these campaigns will be conducted in future also. -APP

LAHORE: Hajjis are being welcomed by thier relatives after thier arrivlas at Allama Iqbal International Airport through the first returning flight of pilgrims from Saudi Arabia.-Online

RGST fear mars trading activities in Pakistan: PCA

Nadra to computerise arms permits: Mirza KARACHI: Schools, mosques, imambargahs, parks, railway stations and other public places should be declared as gun-free zones while the registration of illegal weapons should be made computerised and must be linked Nadra. This was informed to Sindh Home Minister Dr Zulfiqar Mirza in a recommendation report prepared by Consultant Home Affairs, Sharfuddin Memon, in connection

with a national arms recovery campaign. It was also stated in the recommendations that steps should be taken to ensure computerized record of licensed arms, and manufacturing, purchase and sell of ammunition so as to stop illegal trade of weapons. "Armsdetecting scanners should also be installed at entrances and exists of main roads all over the country." The recommendation

report said that the prize money should be announced for those persons who provide solid information for the recovery of illegal arms and ammunitions. The Home Minister reviewed the draft recommendations report and said that the role of civil society, NGOs, all political & religious parties and media should be ensured for the success of national arms recovery drive. -PPI

I S L A M A B A D : Imposition of Reformed General Sale Tax regime under prevailing business conditions would have a devastating impact on overall business activities in the country. The government ought to have detailed deliberation with all stakeholders from trade and business community to evaluate impact and implications of RGST. Munawwar Iqbal, Central President of Pakistan Computer Association (PCA) said this while talking to a

delegation, comprising senior members of the association from Lahore and Peshawar Chapter. He said that the postfloods scenario in the country also suggest that government should seriously consider deferring the imposition of RGST as in the wake of devastating floods, this tax will put more strain on businesses, general public and the economy. Munawwar Iqbal said that the developmental projects are essential for the future of Pakistan and any cut from this

sector would hamper the development and economic growth of the country. He added that such measures would also harm the business activities as economic growth would be ceased if proper infrastructure is not developed. The central president of PCA said that inflation has already gone quite high and the prices of all basic items have jumped unprecedentedly. The phenomenon, he said, has resulted as huge sufferings for poor people and imposition of

reformed GST will bring a new flood of price hike and inflation. He said that the people belong to lower strata of the society are struggling for survival due to devastating impacts of floods will not be able to pull on with life. He urged the government to immediately defer the levying of RGST and start consultation with business community of the country for finding out more suitable and mutually agreeable options to improve tax revenue. -NNI

Government takes guidance from media, says Kaira

MONDAY Time Programmes 8:00 Amnay Samnay (Rpt) 9:00 News 9:15 Pehla Sauda 10:00 News 10:15 Bazaar 11:00 News 11:05 Ghar Ka Kharch 12:00 News 12:15 Power Lunch 13:00 News 13:05 Agenda 360 (Sat Rpt) 14:00 News 15:02 Akhri Sauda 15:30 Munafa Khor Hoshiyar (Rpt) 16:15 Karobari Dunya 17:05 Ghar Ka Kharch (Rpt) 18:05 Chai Time 19:00 News 19:05 Tax Time 19:30 Mang Raha Hai Pakistan 20:00 News 20:05 Islamabad Say 21:00 Pakistan Aaj Raat 22:00 News 22:05 Doosra Pehlu 23:00 News 23:05 Agenda 360 (Sun Rpt) 0:00 News

vate sector until government continues to borrow on high interest rates. Government has borrowed Rs813 billion in 12 months pushing domestic debt to around Rs5 trillion. This situation is contributing towards displeasure of IMF, defaults, closures, unemployment, poverty and unrest; he said. Annual increase of one million

of foreign exchange monthly to the country. He said that people use garments and bed sheets etc while yarn, gray cloth, dying, designing etc would not involve consumers therefore these sectors should be excluded from the ambit of proposed RGST. Few units in country complete all stages of the textile processing that can help them avoid RGST while the rest of units will suffer. Preparations to impose RGST on all textile outputs like ginning, making yarn, weaving, dying and garments would destroy this largest urban employment providing industry. -NNI

PESHAWAR: Man sells sacrificial animals skins at a roadside at Prince road in Peshawar on Sunday.-PPI

LAHORE: Punjab Minister for Finance and Planning and Development Tanvir Ashraf Kaira has said that responsible press identifies real issues of the people for guidance to the government. In a press statement issued here on Sunday, he said that the government took guidance from the press as it was considered to be the fourth pillar of the state.

He said journalists had gained freedom of expression after several sacrifices and political parties had also supported them for their noble cause. He said in the modern age, the press should be more responsible as well as proactive so that problems of the people could be solved properly. "It is a positive sign that Pakistani press showed a

Sialkot: A feather in exports cap SIALKOT: Sialkot is the only city of Pakistan where 99 percent products are exported to various parts of the globe. Through exports, small and medium industries of the city are earning foreign exchange worth over one billion dollars yearly and strengthening the national economy. Local exporters have excelled in foreign trade and also paid special attention to fulfilling social responsibilities. Exceptional achievements in the business aside, the corporate sector is fully vigilant to its responsibilities towards the social sector and played a significant role in this regard. Sialkot-made footballs, field hockey sticks, cricket gear and boxing gloves are used in international games, including the Olympics and World Cups. Surgical and sports goods

industries are the oldest ones that are playing a tremendous role not only in strengthening the national economy but also in providing employment opportunities to hundreds of workers. Most developed countries are importing surgical instruments from Sialkot. Hundreds of surgeries are performed around the world daily by using instruments made in Sialkot. Thus, Sialkot made instruments were playing a silent and significant role in healing wounds and fighting diseases worldwide. However, there is a great need of a separate business strategy for Sialkot keeping in view its unique export culture and craftsmanship, businessmen said. Despite several internal problems like the power crisis and law and order, local exporters and manufacturers are fulfilling

their international commitments to keep the national economic wheel in full motion and compete in the global market. Sialkot Chamber of Commerce and Industry (SCCI) President Ghulam Mustafa Chaudhry called for bringing a radical change in the industrial sector of the city and formulating a separate business plan for the city for enhancing its productivity and bringing innovation to products to cope with challenges of the international market. The SCCI President said industrial technology had improved production worldwide but due to lack of funds and government support, Pakistan's industrial sector lagged behind. "Upgrading the local industrial sector on modern lines is impossible without support and cooperation of the government," he added.

responsible attitude in recent years and the present government believed in freedom of press and expression and was providing all possible facilities to journalists during their professional assignments," he added. The minister said that the role of the media in restoration of democracy in the country was commendable. -APP

3 Tuesday, November 22, 2010

US dollar weekly outlook

Euro may hold gains against USD in busy wk Fed minutes, US data on tap this week Options market suggests euro sentiment improving NEW YORK: The euro is likely to remain stable this week after rising for three straight days against the US dollar as worries about debtstrapped Ireland have eased, although lingering worries about the risk of contagion to other euro-zone economies could curb further gains. The euro on Friday rose across the board. In late afternoon trading, the euro was up 0.3 per cent at $1.3684, after rising as high as $1.3733 on trading platform EBS. After sliding to a sevenweek low of $1.3446 earlier in the week, the euro ended the week little changed against the dollar. On the month, however, the euro was still down 2.0 per cent. Hopes that Ireland was near a deal to get tens of billions of euros from its European partners and the IMF helped push the euro above $1.37 overnight. Momentum, however, stalled ahead of resistance around $1.3750. Traders said this level is likely to hold until markets get more details on the Irish rescue plan. In the currency options market, euro sentiment stabilized for now. The onemonth euro/dollar risk reversal, a barometer of currency sentiment, started to creep higher, suggesting investors near-term are starting to get less euro-bearish. The euro's risk reversal still showed a "put" bias, but it has risen from extremely low levels. On Friday, puts traded higher -- a mid-market of -

Soybeans drop; corn falls on EPA delay CHICAGO: US soybean futures dropped on Friday, capping a weekly decline of 4.9 per cent amid worries that China's steps to fight inflation would limit demand in the world's top soy buyer. Losses accelerated when the US Environmental Protection Agency said it would delay a decision on allowing a higher ethanol blend in gasoline for older cars. Prices for corn, the main US feedstock for ethanol, tumbled on the EPA news, which traders viewed as threatening to biofuel development. Chicago Board of Trade soybean futures for January delivery closed down 40-1/2 cents to $12.01-1/2 a bushel. Corn was 21 cents lower at $5.20-3/4 a bushel. For the week prices fell 2.5 per cent. Wheat futures also fell, following corn and soybeans, but declines were limited due to concerns about dry weather harming crop development in the western US Plains. CBOT December wheat fell 3/4 cent to $6.44-1/2 a bushel. For the week, wheat was down 3.7 per cent. -Reuters

1.175 vols, with bids at -1.55 vols. On Thursday, bids on euro puts were at -1.60, down from -2.025 early last week, a roughly 2-1/2-month low. "Overall, with the crisis in Ireland likely coming to a close, for now...(this) means dollar may soften a bit versus the euro as investors consolidate their short positions," said Marc Chandler, global head of currency strategy, at Brown Brothers Harriman in New York. FED MINUTES, US DATA IN BUSY WEEK In the United States, investors will also focus on a slew of US data in a holidayshortened week including revised figures on gross domestic product for the third quarter, durable goods orders, and personal income. All should point to an economy that is gradually getting back on track, analysts said. The minutes of the last Federal Reserve meeting are also due for release this week, but they are not likely to generate much buzz given the extent that markets had priced in quantitative easing before the Fed announced the policy on Nov. 3. The minutes may give some clues on what it would take to see a third round of QE. Outside of data in the United States, which celebrates the Thanksgiving holiday this Thursday, markets will remain focused on developments in Ireland. A deal to help Ireland cope with its battered banks will be unveiled this week, EU

sources said on Friday. Ireland will publish the details of a four-year fiscal plan to save 15 billion euros at roughly the same time. Avery Shenfeld, semnior economist at CIBC World Markets in Toronto said Ireland is a "peek as to what still lies ahead economically for larger Spain, which along with Portugal could be the next target for bond-market vigilantes. Shenfeld said Spanish debt risks represent a much bigger cloud over Europe's other banks, and Spain could need a much larger backstop loan if it fails to hit its deficit targets. "All good reasons why, at least until the dust settles, it's worth paring positions in the euro," said Shenfeld. James Dailey, chief investment officer and senior portfolio manager at TEAM Asset Strategy Fund, a mutual fund based in Harrisburg, Pennsylvania, echoed Shenfeld's view. "I think the euro situation is going to have a lot of ebbs and flows over the next year. And ultimately, it's going to move significantly weaker, especially against commodity currencies," said Dailey, who manages assets of $45 million. He believes the euro is probably in the early stages of a long-term downtrend. "Broadly speaking, we'll probably trade in the $1.10 and $1.40 range. It's a broad range, but the US dollar and the euro will probably take turns bouncing around as each country or region goes through bailouts. -Reuters

Sugar spirals 7pc, cocoa drops; eyes on China LONDON: Raw sugar prices careened to close down 7 per cent on Friday, after China increased its banks' reserve requirements, correcting downward to become the biggest daily loser on the ReutersJefferies CRB index, in sharp contrast to its top position the day before. ICE March raw sugar tanked 2 cents, or 7.1 per cent, to finish at 26.15 cents per lb, trading in an exceptionally wide range from 25.98 to 29.30 cents. Liffe March white sugar fell $29.60 to close at $679.10 per tonne. Raw sugar futures responded more drastically than other markets because of their recent strong rally. The spot contract climbed 157 per cent in a sixmonth rally to a 30-year high at 33.39 cents per lb on Nov. 11. World sugar production is forecast at 161.9 million tonnes in 2010/11, compared with a May estimate of 163.8 million tonnes. Cocoa futures also slipped after the prior session's strong advance, pressured by the Chinese news and correcting lower off Thursday's rally. March cocoa on Liffe fell 52

pounds to finish at 1,879 pounds a tonne. The contract rose 49 pounds on Thursday and still stands well above a 15month low of 1,798 pounds set on Nov. 8. ICE March cocoa fell $71, or 2.4 per cent, to settle at $2,868 per tonne, but finished the week up 3.2 per cent, the biggest weekly gain in nine weeks. Coffee futures also felt early pressure from the weak macroeconomic situation, but pared losses to finish little changed, as roasters nibbled at the bottom and producers waited for the market to come to them, traders said. ICE second-month arabica coffee futures closed down 0.05 cent at $2.1125 per lb, finishing the week up 5.4 per cent, the biggest weekly gains in four weeks. Total daily volume was light, however, at 9,229 lots, the lowest since Aug. 31, preliminary Thomson Reuters data showed. Liffe second-month robusta coffee futures closed down $1 at $1,910 a tonne, well below a twoyear high of $2,098 per tonne touched on Nov. 9. -Reuters

US cotton ends limit-down on China inflation move NEW YORK: US cotton futures ended down by their daily limit on Friday after another move by China to slow its economy led to further liquidation before the weekend, brokers said. The benchmark March cotton contract on ICE Futures US closed down 6.00 cents, or 4.65 per cent, at $1.2315 per lb. The decline caught many market participants off-guard following Thursday's limit-up move. "I'm real surprised the market has gotten pounded like this because the China news was kind of what got us going down earlier this week," said Jobe

Moss, an analyst for brokers and merchants MCM Inc in Lubbock, Texas. Kona Haque, an analyst with Macquarie Bank, said that with prices trading well above production costs and speculative exposure quite high, any pullback could become quite severe. "At current elevated prices, demand growth will start to get hurt as mills turn to synthetic blended yarns," she said. Even an excellent pace of export sales failed to keep sellers at bay. The US Agriculture Department's weekly export sales report showed US cotton

sales at 566,700 running bales (RBs, 500 lbs each), around the eighth time in nine weeks sales have topped 500,000 RBs. "We sold nearly 80 per cent of what we had projected to sell for the whole season already, and yet the market failed, and failed miserably last night," said Mike Stevens, an independent cotton analyst in Louisiana. "Fridays are notorious for putting one side or the other's feet to the fire, and obviously the bull's feet are to the fire today. It gives every appearance that there is more to go to the downside," he said. Reuters

Sterling posts losses for week LONDON: The pound fell against the euro for the third time in the past four days as mounting speculation that Ireland will receive financial aid damped demand for the UK currency as a haven. Sterling had its first weekly decline against the common currency in four weeks. Finance Minister Brian Lenihan said his government would welcome "substantial contingency capital funding," opening the door to loans the central bank said may be worth "tens of billions" of euros. "The market is starting to feel that Ireland is probably a done deal, although technically it's not at all," said Jane Foley, a senior currency strategist at Rabobank International in London. "The euro is a little bit better bid, so sterling is therefore on the back foot relative to that." The pound depreciated 0.6 per cent to 85.52 pence per euro at 4:44 p.m. in London, leaving it 0.7 per cent weaker since Nov. 12. The UK currency fell 0.5 per cent to $1.5961, set for its second straight weekly drop. The pound has declined 3.3 per cent against a basket of its developed-country peers this year, making it the third- worstperforming currency, after the euro and Norwegian krone. Sterling also depreciated as the People's Bank of China ordered banks to set aside larger reserves for the second time in two weeks, aiming to limit inflation and asset-bubble risks. The yield on the 10-year gilt slipped two basis points to 3.38 per cent, with the two-year note yield four basis points lower at 1.08 per cent. The FTSE 100 Index of stocks declined 0.6 per cent, a weekly drop. Gilts have returned 6.3 per cent this year, compared with a 6.8 per cent gain for German bonds and a 7.3 per cent increase for US Treasuries, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. Agencies

Copper has biggest wkly decline in 3-mth NEW YORK/LONDON: Copper ended down in its biggest weekly decline in three months on Friday, after further steps by China to slow its excessive growth rate and lingering debt troubles in Ireland stoked investor concerns about demand for industrial metals. Three-month copper on the London Metal Exchange eased $21 to close at $8,404 a tonne, after dealing between $8,320 and $8,521 a tonne. For the week, the metal shed 2.4 per cent for its largest loss on a weekly basis since midAugust. Conversely, COMEX copper for December delivery managed to eke out a 0.25-cent gain on Friday to end at $3.835 per lb. Copper raced to a record high of $8,966 last week, but eurozone jitters and concerns over tighter Chinese fiscal policy sent investors fleeing from risk. Earlier this week, the metal fell more than 5 per cent in the biggest one-day loss in six months. On the supply side, union workers at Antofagasta's Los Pelambres copper mine signed an early wage deal with management, a union leader told Reuters on Thursday, averting the possibility of a strike at Chile's No. 5 copper deposits. Meanwhile, the union at the giant Collahuasi copper mine in Chile expected most workers to extend their 15-day strike and rejected management's "final" wage offer. Latest data showed LME copper inventories slipped 775 tonnes to 359,825 tonnes, having fallen from 6-1/2 year highs of 555,075 tonnes reached in mid-February. In other metal, nickel closed flat at $21,850 a tonne, while zinc ended down $27 at $2,160 a tonne. Aluminum dropped $41 to $2,264 a tonne and lead closed down $38 at $2,277 a tonne. Tin was at $25,000 a tonne from $25,100 a tonne. -Reuters

Asian currencies

Mostly trim weekly losses as Ireland resolution SINGAPORE: Asian currencies pared losses for the week as signs Ireland will accept a bailout and regional economies are sustaining growth fuelled investor appetite for higheryielding assets. Irish central bank Governor Patrick Honohan said on Nov. 18 he expects to tap a loan from the European Union and the International Monetary Fund worth "tens of billions" of euros, cutting demand for the safety of the dollar. Asian exchange rates dropped last week on concern governments will impose controls to curb capital inflows. South Korea's finance ministry said on Nov. 18 it backs legislation for a tax on bonds. South Korea's won appreciated 0.1 per cent to 1,133.65 per dollar in Seoul, reducing its decline last week to 0.5 per cent. Malaysia's ringgit rose 0.2 per cent to 3.1174, paring the drop in the past five days to

0.2 per cent. Thailand's baht was little changed at 29.94 and was down 0.6 per cent for the week. South Korea's government will back legislation reinstating a 14 per cent tax on interest income from treasury and central bank bonds and a 20 per cent capital gains levy on their sale, the finance ministry said on Nov. 18. "Concern over the government's capital-control measures has also not fully subsided," said Lee Young Chul, a currency dealer at Korea Exchange Bank in Seoul. "We've seen authorities limiting gains near 1,130 per dollar." Taiwan's dollar strengthened after the economy expanded more than forecast in the third quarter. The currency climbed 0.2 per cent to NT$30.673, taking the week's gain to 0.3 per cent. Gross domestic product rose

9.8 per cent in the third quarter from a year earlier, the government reported after the close of trading on Nov. 18. The median estimate of economists in a survey was for growth of 8.3 per cent. The ringgit advanced for a second day after the central bank said it isn't considering measures to curb capital inflows. Malaysia, whose bonds have attracted record funds from abroad this year, will maintain "rigorous surveillance" to ensure its markets aren't overwhelmed, central bank Governor Zeti Akhtar Aziz said in Oslo on Nov. 18. Elsewhere, the Singapore dollar slid 0.2 per cent during the week to S$1.2952 against the US currency and the Philippine peso dropped 0.2 per cent to 43.81. Indonesia's rupiah lost 0.1 per cent to 8,933 and the Indian rupee declined 0.9 per cent to 45.19. -Agencies

Canada dollar up, but Specs cut against sheds 0.9pc for week bets USD: CFTC

TORONTO: Canada's dollar firmed against the greenback on Friday, helped by rising equity markets, but China's move to tighten monetary policy pressured resource prices and kept the commodity-linked currency in a tight range. "The US dollar itself is mixed with commodity currencies including Canada being weighed upon by the drop in correlated prices," said Jack Spitz, managing director of foreign exchange at National Bank Financial. "Equities on the other hand are marginally higher, which would put a bid to risk, which should theoretically put a bid to the Canadian dollar."

The Canadian dollar closed at C$1.0180 to the US dollar, or 98.23 US cents, up slightly from Thursday's finish at C$1.0215 to the US dollar, or 97.90 US cents. The currency was down 0.9 per cent for the week. Spitz said the Canadian dollar was still more or less flat against its US counterpart, having seen more action and volatility on the crosses on Friday, as it was sold against the euro and bought against the yen. Levels providing near-term support for the Canadian dollar are C$1.0260 to C$1.0340. Parity still represents a significant support level for the greenback, he said. -Reuters

NEW YORK: Currency speculators cut their bets against the dollar in the latest week, data from the Commodity Futures Trading Commission showed. The value of the dollar's net short position fell to $15.52 billion in the week ending Nov. 16, from $21.85 billion the previous week, according to Reuters and CFTC calculations. The biggest shift involved the euro, as speculators more than halved bets in favor of the currency. Long positions in the yen, Swiss franc and Australian dollar shrank as well.-Reuters

Crude oil slips on China bank reserve move NEW YORK: US oil prices fell on Friday and logged their biggest weekly percentage decline since August after China raised bank reserve requirements a second time in two weeks as the No. 2 oil consumer tries to curb inflation. The People's Bank of China said that it would increase banks' required reserves by 50 basis points, a less aggressive move than the interest rate rise that many had speculated could occur as soon as this week. The expiring US crude contract for December delivery fell 34 cents to settle at $81.51 a barrel, down 3.97 per cent on the week, a second straight weekly decline and the biggest percentage decline since the week to Aug. 13.

US January crude fell 44 cents to settle at $81.98 a barrel. Total US crude trading volume was just above half million lots traded with less than an hour of post-settlement trading left on Friday. That was 24 per cent below the 30-day average. In London, ICE front-month January Brent crude fell 71 cents to settle at $84.34 a barrel. The premium of ICE Brent to US crude rose to its highest since Sept. 30 on Friday as inventories at the Cushing, Oklahoma, hub, delivery point for the New York Mercantile Exchange's light sweet crude contract, increased last week and as North Sea crude output fell. Brent's premium may expand further amid a pickup in militant action in Nigeria, where Royal

Dutch Shell Plc declared force majeure on Bonny Light oil exports after a pipeline was damaged. US gasoline futures prices also fell on Friday, helping pressure the oil complex after jumping more than 3 per cent on Thursday. Late on Friday, after oil's price settlements, the government reported that money managers cut net long crude oil positions on the NYMEX in the week to Nov. 16, from record high levels the previous period. Money managers slightly reduced their net long positions in heating oil while raising them for gasoline, according to the report from the US Commodity Futures Trading Commission. -Reuters

Gold flat on Irish aid hopes; China in focus NEW YORK: Gold prices were little changed on Friday as the euro bounced on growing confidence that Ireland's debt crisis will be resolved, but China's measures to tighten its economy kept bullion under pressure. Bullion fell for a second consecutive week as the metal was caught up in broad-based selling, along with other commodities, by investors' need to liquidate positions amid increasing margin calls. A financial aid plan to help Ireland cope with its battered banks will be unveiled next week, European Union sources said on Friday, but experts warned a rescue may not be enough to prevent contagion to other euro-zone members. "The sense of calm that has returned today and yesterday is taking away any safe-haven bid that may have emanated from

the potential crisis," said Tom Pawlicki, a precious metals and energy analyst of MF Global. At the same time, speculation about a possible interest rate hike by China, a top raw materials consumer, is likely to continue to weigh on gold and other commodities. Spot gold was up 0.1 per cent at $1,353.50 an ounce at 1913 GMT, having earlier fallen as low as $1,341.40. US gold futures for December delivery settled down 70 cents at $1,352.30. Silver rose 1.3 per cent to $27.27 an ounce. COMEX volume continued to be lighter than earlier this week, when the markets sold off. Gold futures volume was more than 20 per cent below its 30-day average, while silver turnover was largely in line with its average. The gold market stabilized as the euro inched higher against

the dollar. Expectations that the dollar will weaken once more is still underpinning longer-term positive sentiment towards gold, analysts said. But demand for gold-backed exchange-traded funds continued to be soft, with holdings of the world's largest gold ETF, the SPDR Gold Trust, declining 4.6 tonnes to a one-month low of 1,286.299 tonnes on Thursday. Platinum, mostly consumed by the auto industry to clean vehicles' exhaust fumes, was in focus after prominent commodities investor and hedge fund manager Dwight Anderson said the metal's output has possibly peaked, and prices are likely to rise to record highs. Platinum edged up 0.2 per cent to $1,664.49 an ounce and palladium gained 1.1 per cent to $701. -Reuters

4 Monday, November 22, 2010

America, Iran & a Terrorist Label

The Financial Daily International Vol 4, Issue 105

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

S. Muneer Hussain Rizvi

Asim Abbas Ashary, CPA

Khurram Shehzad, CFA

Akhtar M. Zaidi, FCA

Prof. Zakaria Sajid (KU)

Dr. A. Hadi Shahid, FCA

Zahid Bukhari SVP HBL (retd)

Muhammad Arif

Ismat Sabir Head office

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

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Try to win over EU, beg not Pakistani exporters of textiles and clothing, expecting a big favour from the European Union (EU) are disappointed by the revised package. Various groups have already started suggesting addition or deletion of a few products to protect their own vested interest. However, the concessions should not be pleaded the way certain quarters are demanding. They should convince the EU member countries that enhanced exports from Pakistan will not cause any material injury to their domestic industries. Most of the products included in the incentive package and being exported from Pakistan do not fall in the category of 'identical products'. Pakistani exporters should also remember that the EU has to protect the interest of its members as well as those of the countries meeting its requirements. One of the biggest apprehension of the textiles and clothing manufacturers of the EU is that these concessions would open the floodgate of cheap imports from Pakistan. However, this apprehension is not being taken care of by Pakistani exporters who aren't willing to contain the growth to prescribed limits. In facts Pakistani exporters want to get too much in too short a time, which is the biggest cause of concern for EU members, who are also facing economic downturn and reduced purchasing power. Pakistan's request for the greater access to the US market has been resisted on the grounds that more than 400,000 employees that work for the US textiles and clothing industry may lose their jobs. The respective trade bodies also say granting duty-free treatment to Pakistani exports will not only undermine the US manufacturers but will also harm the producers located throughout Mexico, Central America, and the Caribbean and Andean regions that compete directly with Pakistan for the US market share. Pakistani exporters have lost their share for the Christmas season as many foreign buyers diverted their orders to other countries on the concerns of disruption in the supply chain due to damage to cotton crop and infrastructure caused by floods and more importantly due to ongoing electricity and gas load shedding. The only bargaining point is to satisfy the US as well as EU that the duty-free imports from Pakistan will cause any material injury to their domestic textiles and clothing industries. Pakistan's apparel industry had hardly seen any noticeable growth in exports to the US/EU since the abolition of the textile quotas. Let it be very clear that the American/European textile and clothing makers were least affected when Bangladesh and Sri Lanka were given GSP Plus status after the 2005 Tsunami. Nothing can be far from truth that American and Europeans will lose their jobs if Pakistan is given preferential trade treatment. It will only enable Pakistan to compete its traditional rivals like Bangladesh, China, India and, Sri Lanka that too for a very brief period.

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.

assess the label and the review mills appear to be grinding very slowly.

Bernd Debusmann

ho says that the United States and Iran can't agree on anything? The Great Satan, as Iran's theocratic rulers call the United States, and the Islamic Republic see eye-toeye on at least one thing, that the Iranian opposition group Mujahedin-e-Khalq (MEK) are terrorists. America and Iran arrived at the terrorist designation for the MEK at different times and from different angles but the convergence is bizarre, even by the complicated standards of Middle Eastern politics. The United States designated the MEK a Foreign Terrorist Organization in 1997, when the Clinton administration hoped the move would help open a dialogue with Iran. Thirteen years later, there is still no dialogue. But the group is still on the list, despite years of legal wrangling over the designation through the US legal system. Britain and the European Union took the group off their terrorist lists in 2008 and 2009 respectively after court rulings that found no evidence of terrorist actions after the MEK renounced violence in 2001. On July 16, a federal appeals court in Washington instructed the Department of State to review the terrorist designation, in language that suggested that it should be revoked. But it gave US Secretary of State Hillary Clinton two years to re-

â&#x20AC;&#x153;

Iran, further tighten economic sanctions and ensure that those already existing don't erode. The influential House Foreign Affairs Committee will be headed by Ileana R o s Lehtinen, an enthusiastic M E K backer, who said in a recent interview with Reuters correspondent P a s c a l Fletcher that the West must make clear it means business about implementing sanctions against Iran. "If...we convey a sense of weakness and a lack of resolve, the centrifuges (in Iran's uranium enrichment program) keep spinning." GROUP BLEW WHISTLE ON NUCLEAR PROGRAM Ironically, it was the MEK which gave the first detailed public account of Iran's until-then secret nuclear projects at the cities of Natanz and Arak, in 2002. The disclosure greatly turned up the volume of the international controversy over Iran's intentions. (Iran's leaders firmly deny that work on nuclear bombs is underway). Iran's nuclear program is likely to rise close to the top of Obama's foreign policy

America and Iran arrived at the terrorist designation for the MEK at different times and from different angles but the convergence is bizarre, even by the complicated standards of Middle Eastern politics. The United States designated the MEK a Foreign Terrorist Organization in 1997, when the Clinton administration hoped the move would help open a dialogue with Iran. Thirteen years later, there is still no dialogue A group of lawmakers from both parties reminded Clinton of the court ruling this week and drew attention to a House resolution in June -- it has more than 100 cosponsors and the list is growing -- that called for the MEK to be taken off the terrorist list. Doing so would not only be the right thing, the six leading sponsors said in a letter, it would also send the right message to Tehran. Translation: using the terrorist label as a carrot does not work, so it's time to be tough. Come January, when a new, Republican-dominated House of Representatives begins its term, Clinton and President Barack Obama are likely to come under pressure from hawkish members of congress to act tough towards

agenda in the second half of his mandate, particularly if there are no signs of progress in the on-again, off-again attempts to break the present stalemate. The next talks are scheduled for Dec 5, between the so-called P5+1 (UN Security Council members Britain, France, Russia, China and the United States, plus Germany) and Iran. Other than getting the United States in synch with its Western allies on their assessment of the MEK, what would taking it off the 47-strong American list of Foreign Terrorist Organizations change? In the United States, it would unfreeze frozen funds and allow the group to reopen its office and operate freely as an advocacy group. In Iran, it would deprive the government of an all-purpose scapegoat to taint all reformists with the MEK brush. In arresting alleged members or sympathizers, Iranian authorities routinely mention that even the United States considers the group terrorist. In their letter to Clinton, the legislators argued that the US designation allowed Iranian officials to "further justify their draconian punishments". How much support the MEK, whose leadership is based in Paris, enjoys in Iran is a matter of dispute and many experts rate it as insignificant. But there is no dispute over draconian punishments for Iranians judged to be members or sympathizers. That prompts charges of "waging war against God", which is punishable by death. The MEK's appeal to the Washington court in summer was its fifth petition. It remains to be seen how long the United States. and Iran will stay on the same page on the matter.-Reuters

Wider European Policy Debate Mohamed El-Erian

t is safe to say that there is broad agreement on what is most desirable for solving the Irish crisis - namely a mix of domestic policies and external financing finely calibrated to enable the country to grow strongly, create jobs, stabilize the banks, and overcome large and mounting indebtedness. Unfortunately, what is most desirable is not feasible given the path Europe is embarked on; and, to make things even more complicated, what appears feasible to Europe is not necessarily desirable. As a result, Ireland finds itself stuck in an unstable muddled-middle. It can't get ahead of the crisis; it is far from

a first best solution; and it confronts choices that are painful to implement and uncertain in outcome. What is evolving in Ireland today resembles what was done in Greece six months ago. Expect the Irish government to commit to even greater budgetary austerity, its European neighbors and the IMF to provide massive funding, and the banks to receive liquidity, capital injections and other unconventional forms of support. While seemingly exceptional to many, this approach constitutes the path of least resistance. In fact, it is the most feasible. But we should not confuse feasibility with desirability. At its roots, the approach addresses liquidity but not solvency. It adds to the debt overhang rather than reducing it. And it uses the socially-painful

method of income and growth compression as the principal way to promote international competitiveness over time. It should come as no surprise that, six months after having embarked on such an approach, Greece is still in crisis mode. Risk spreads remain at elevated levels that discourage new

EU/ECB/IMF to exit their Greek exposures rather than coinvest with the official sector. At some stage, Europe will need to find a better way to reconcile desirability with feasibility. It needs alternative approaches that, while also falling short of a first best, could prove more effective in over-

Unfortunately, what is most desirable is not feasible given the path Europe is embarked on; and, to make things even more complicated, what appears feasible to Europe is not necessarily desirable. As a result, Ireland finds itself stuck in an unstable muddled-middle. investment. Society faces a higher-than-programmed contraction in economic growth and poorer employment prospects. The government is forced into even greater fiscal austerity. Meanwhile, private creditors have been using the exceptional support provided by the

coming the debt overhang, restoring competitiveness, and facilitating pro-growth economic re-structuring. Inevitably, these alternatives will push national and regional policymakers out of their comfort zone. In a wider policy debate, debt restructuring would

be considered as a possible preemptive option rather than a disorderly inevitability; thought would be given to the possibility of the weakest Euro-zone members taking a type of sabbatical from the club and rejoining on a stronger and more sustainable basis. Time is of essence. Europe must give serious consideration to a wider range of approaches. It is in a good position to do so given the undeniable strength of core Euro-zone countries, anchored by a fiscally sound and economically robust Germany. In this much-needed wider debate, none of the options on the table would be easy or risk free. Yet the longer it is postponed, the greater the risk that the peripheral European problems will spread further and, in the process, the region as a whole will lose out in terms of both what is desirable and what is feasible.-Reuters Writer is CEO and co-CIO of PIMCO, and author of a New York Times/Wall Street Journal bestseller "When Markets Collide" (2008).

Prince of Arabia: A Thing for Throne

nterior Minister Prince Nayef bin Abdul-Aziz is one of the most powerful players in leading oil exporter Saudi Arabia. As interior minister and second deputy prime minister, Nayef is considered to be in a strong position to assume leadership of the country in the event of serious health problems afflicting the king and crown prince. King Abdullah is travelling to the United States on Monday for medical checks, while Crown Prince Sultan is returning from a holiday abroad. Here are some facts about Prince Nayef, his career, positions and standing in the ruling Al Saud family. WHO IS PRINCE NAYEF? n Nayef was born in the western city of Taif around 1934 and is the half-brother of King Abdullah and son of state founder Abdul-Aziz Ibn Saud. He became Riyadh governor at the age of 20. * He has been interior minister since 1975 and got promoted as second deputy prime minister in 2009 when Crown Prince Sultan

nomic reforms to create jobs, he may slow plans to overhaul the judiciary because it would mean curbing the influence of clerics who command wide powers as judges, diplomats say. n Such a move would reduce the kingdom's appeal to investors because the country lacks a consistent legal frameClerics base rulWhile Nayef is not expected to reverse work. ings on personal interpretation of Islamic much-needed economic reforms to create law. The same goes for jobs, he may slow plans to overhaul the the ongoing reform of state education, which judiciary because it would mean curbing now focuses on reliand does not prothe influence of clerics who command gion duce graduates capable of landing jobs in the wide powers as judges, diplomats say private sector. Nayef might bow to demands of clerics the monarchy and helped him and women do not mix. to stop or at least slow the WILL NAYEF OPPOSE extend his authority into foreign reform process here. REFORMS? policy, religious affairs and the n A big general problem in n Diplomats say Nayef is media. Since his promotion he has taken on additional duties by unlikely to pursue many social getting reforms under way is that chairing cabinet meetings while or political reforms if he were to clerics and conservatives domiAbdullah and Sultan were away. become king one day. They say nating ministries simply do not his ministry was behind the ban- implement orders from the top. n His son, Mohammed bin Nayef, is the Saudi counter-ter- ning of the country's only film If Nayef took over they might festival in summer 2009, a move feel encouraged to block even rorism chief. more plans, Western diplomats that shocked liberals. n Prince Nayef is one of the say. n While Nayef is not expected most conservative forces in the n Other diplomats in Riyadh ruling family and is feared by to reverse much-needed ecowas out of the country to convalesce after medical treatment. n Nayef played a crucial role in dealing with a series of al Qaeda attacks on expatriate housing compounds, oil and industrial facilities inside the kingdom from 2003 to 2006. n The confrontation strengthened Nayef's pivotal position in

liberals and reformers. Shortly before his promotion last year, Nayef said he saw no need for female lawmakers or to hold elections at all. * He has repeatedly backed the religious police apparatus who roam streets to make sure that shops and restaurants close for prayers and unrelated men

say Nayef will have no choice but to continue with some reforms as the kingdom needs to attract investors to create thousands of jobs for its rising population but overall doubts over the course of reforms remain. n Nayef raised eyebrows abroad after the Sept. 11, 2001 attacks in the United States when he denied that Saudis were among the hijackers, suggested Jews instead were behind the attacks, and held up cooperation with Western security bodies. But he went on to win plaudits from Western governments for his action to crush al Qaeda cells inside the kingdom after the group launched a violent campaign there in 2003. n In June he admonished the religious police to treat people with respect, a move described by an official at the interior ministry as showing that Nayef can be flexible. "He had gained their confidence by praising them much first, and then asked for change. If he criticised the religious police from the start they would not listen to him," the official said.-Reuters

Monday, November 22, 2010

EU stocks slip for 2nd wk on Irish debt, China woes

Australian QR National IPO raises $4bn; tepid debut seen

Outsiders shine at KSE in 2-day wk

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

10,874.02 10,966.00 91.98 0.85 138.94

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

3,392.58 3,433.71 41.13 1.21 8.17

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

2,766.91 2,794.97 28.06 1.01 0.23

Major Gainers

Symbol

Change

SIEM 1,310.68 WYETH 850.00 COLG 870.00 ULEVER 4,076.33 SRVI 211.09

39.68 29.00 28.94 26.33 19.62

Nawaz Ali

Major Losers

Symbol

Change

RMPL 1,917.22 NESTLE 1,931.59 HINO 131.99 GRAYS 51.83 ISIL 71.39

-71.78 -11.81 -4.55 -4.07 -3.71

Top 5 Volume Leaders

Symbol

Close Vol (mn)

JSCL LOTPTA HUBC AHSL DGKC

12.55 11.94 35.54 25.95 28.99

17.13 12.95 12.89 5.66 5.48

Active Issues Plus Minus Unchanged

241 144 13

Sector Updates FERTILISER 000 tonnes

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

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

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

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

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

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

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

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

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

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

MADRID: Florentino Perez, chairman of Spain's biggest builder ACS, stands on stage at the start of the company's extraordinary shareholder meeting. Spain's ACS said its main shareholders have offered additional stock as collateral for the builder's all-share bid to win control of German rival Hochtief.-Reuters

Wall Street weekly outlook

Black Friday focus of investors NEW YORK: Expectations about Black Friday, when Americans traditionally get serious about holiday shopping, could sway stocks this week if it looks like the economy will get a pop from consumer spending. The outcome of talks to shape a bailout for Ireland could also move stocks, analysts said, but they cautioned that other highly indebted euro-zone countries could still be a source of worry. Even though light volume will define trade during the holiday-shortened week of US Thanksgiving Day on Thursday, investors will watch to see if retail sales appear strong enough to give the market a Santa Claus rally. The lighter-than-average volume expected this week could lead to exaggerated moves in the market after a week of sharp losses and advances. Further gains would resume an uptrend that began at the end of the summer, with the Standard & Poor's 500 index up 14 per cent since Aug. 31. The market was little changed this week and suffered losses the week before. "Bullish sentiment toward holiday sales is the most likely catalyst for the cyclical bull market to resume, so a lot rests on that," said Chris Burba, short-term market technician at Standard & Poor's

in New York. If sales seem weak, "this dip could turn into something bigger." Retailers have been optimistic in their forecasts for holiday sales, and investors will want to see evidence to support those forecasts as worries about consumer spending weigh on the economic outlook. At a rate of 9.6 per cent, unemployment is seen as one of the biggest drags on the US economy, Target Corp last week was the latest retailer to give an upbeat forecast, saying it expects to post its best same-store sales in three years during the period. The day after Thanksgiving traditionally marks the start of the US holiday shopping season and is called Black Friday because retailers make enough sales to get their accounts into black ink. Shoppers are expected to flood stores in search of bargains while retailers fight for sales. Target, for instance, is using a builtin discount for shoppers who use its store credit card. "It's a very competitive retail environment ... a sign people are slugging it out" for every last sale, said Sasha Kostadinov, portfolio manager at Shaker Investments in Cleveland. With the recent market weakness, the S&P 500 has had trouble staying above 1,200 and ended just below

that level on Friday. A break above the mark, however, "would be a good sign," signaling bullish momentum, said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. For the week, the Dow Jones industrial average rose 0.1 per cent, the S&P edged up 0.04 per cent and the Nasdaq dipped 0.004 per cent. Among the week's economic data is the government's second estimate of third quarter gross domestic product growth, expected to show the economy grew a bit faster than previously thought. Two reports on housing are expected as well: the existing home sales report, which is expected to show a drop in October sales after two months of gains, and new homes sales, which is expected to show little change. Other reports will give a glimpse of manufacturing, consumer spending and inflation. Investors will look to see if the data supports the Federal Reserve's decision earlier this month that it would buy more debt in an effort to boost the economy. On Tuesday the Fed will release minutes from the policy-setting meeting in which officials discussed the decision to buy $600 billion in bonds to stimulate the economy. -Reuters

KARACHI: Despite locals' half-hearted activities ahead of the Eid holidays, Karachi Stock Exchange (KSE) remained a bull-country during the last (2day long) week ending above 10,900 points level mainly led by foreigners who went crazy about energy stocks when a positive Credit Suisse report came on the heels of a power tariff hike. It should be noted that the market remained closed from Wednesday to Friday for Eidul-Adha. The benchmark KSE 100Index gained 91 points to close at 10,966 points while it touched the highest and the lowest of 10,984 and 10,841 points respectively. KSE 30-Index increased by 134 points to close at 10,596 points and KSE All Share Index grew by 64 points to close at 7,628 points. Around 139 million shares traded during the 2-days week with an average daily volume of 69.4 million shares declining by 96.6 million as compared to an average turnover of 166 million shares a week earlier. Out of total 398 active issues 241 advanced and 144 declined while 13 issues remained unchanged. "Bullish activity witnessed amid low volumes ahead of Eid Holidays was due to continuous foreign interest in the energy sector after a raise in power tariff", said Ahsan Mehanti, Director Arif Habib Investments. Positive sentiment prevailed in blue chip scrips across the board on positive reports on energy sector, added Ahsan. According to NCCPL data, foreigners did a net-buying of

$2.8 million during the week. The total net-buying of by the offshore investors so far in the month of November now stands at $24.49 million. The week started with some limited positive activities on Monday with a gain of 35 points. The bullish trend continued on Tuesday as well where a power tariff hike coupled with a positive Credit Suisse report on Pakistan's energy sector fueled foreigners' interest who earned the apex index 56 points by the time it called it a session. Credit Suisse which is an international financial services group issued a report that energy sector which also has the heaviest weightage in KSE 100Index will benefit the most from a rise in electricity tariff and is expected to yield higher returns. It should be noted that the electricity tariffs have been increased by around 2 per cent effective Nov 1 on Monday. Further, expectation of an early resolution of circular debt crisis after approval of $500 million aid for rehabilitation/reconstruction of flood affected regions in the country at Pakistan Development Forum too supported the market to close above 10,900 levels. Investor participation however remained low on both days as locals were mainly on the sidelines ahead of the long Eid holidays. Reservations on Reformed General Sales Tax (RGST) too kept the investors away from the bourses. It is a general opinion of the people that RGST would increase inflation which may lead to further tightening of monetary policy while investors were also thinking the effect of the flood surcharge on corporate profitability.

Gulf stocks mkt

Dubai climb, led by Gulf General, Arabtec DUBAI: Dubai shares rose for the first time in four days as Gulf General Investment Co's profit more than doubled and on speculation earnings at Arabtec Holding will improve. Egypt benchmarks also advanced. Gulf General surged 4.9 per cent, the most in more than two weeks. Arabtec, the UAE's biggest construction company, gained the most since Nov 9. Dubai's DFM General Index advanced 0.6 per cent to 1,696.19 at 1:38 pm, according to the bourse's website. The market opened for the first time since Nov 14 after the end of an Islamic holiday. Egypt's stock gauge climbed 1.2 per cent, while Qatar's measure advanced 1.3 per cent. "Investors are seeing a good opportunity to buy Arabtec on speculation of an improved fourth quarter," said Kifah Maharmeh, general manager at Al Dar Shares & Bonds Brokerage in Abu Dhabi. "The good movement on Arabtec is shifting to other stocks." Arabtec gained 2.2 per cent to 1.89 dirhams. The shares have declined 16 per cent this month as it reported a 96 per cent slump in third quarter profit on Nov 7. They trade at 9.6 times earnings. That compares with 15.1 times for Dubai's benchmark index. The company may report a profit of AED103m ($28m) in the fourth quarter after a loss in the year earlier period, according to one analyst estimate. Gulf General rose to 51.4 fils. The investor in industrial projects and real estate said third quarter net income jumped to $14.56m from $6.04m in the year earlier period. Emaar, the builder of the world's tallest skyscraper, increased 1.7 per cent, the most since Nov 9, to 3.7 dirhams. Saudi Arabia's Tadawul All Share Index and Kuwait's gauge gained 0.3 per cent. Bahrain's measure added 0.2 per cent, while Abu Dhabi's ADX General Index lost 0.3 per cent. Oman's MSM30 Index dropped 0.1 per cent. -Agencies

Dhiyan

A POSITIVE MARKET MAYBE Salman Naqvi, Head of Sales Aba Ali Habib Securities Market has been witnessing some continuous bullish activities on the back of foreign buying but now the developments on the political front over RGST and upcoming monetary policy would drive the market in the short-term. Investors are therefore advised to adopt 'wait & see' stance by that time. Any positive development on RGST among political parties and unchanged interest rate would spur bullish activities which may get us 11,500 points mark in the coming days. Apart from these, introduction of Margin Trading System (MTS) would also trigger the market. Market would be positive today.

Muhammad Ahsan Rasheed, Director Research & Marketing, AMJ Growth

Market outlook is bullish where index could touch 11,300 levels in the short-term. Investors are recommended to take positions in blue chip insurance, refinery and chemical stocks. The launch of MTS would be a trigger for the market while next IMF tranche would also put a positive impact on it. Some positive activities are expected in the market today.

Monday, November 22, 2010

Market 138,941,294

Value

5,697,637,316

Trades

101,252

Paid up Cap(mn)

Advanced Declined Unchanged Total

241 144 13 398

Current High Low Change

Open

High

High Low 1,424.80 1,397.93 Total cos Defaulter cos P/BV (x) ROE (%) 3.42 32.54 Low

Close Chg

Close Change % Change 1,419.29 17.65 1.26 Listed cap Market cap 200-Day High 65,194.15 mn 1,110,393.29 mn Payout (%) Div Yield (%) 200-Day Low 55.94 5.32 Last 60 days High Low

Volume

2009 Div BR (%) (%)

2010 Div BR (%) (%)

Company

Atlas Battery

691

5.33 302.49

308.79 302.25 307.51

5.02

750680

374.20

287.99

250

300

7.13 122.94

127.59 121.00 127.23

4.29

5278054 129.70

76.20

Mari Gas Company

735 16.21 118.72

120.50 119.00 119.62

0.90

National Refinery XD

800

265.93 251.80 265.35 12.56

3.93 252.79

Oil & Gas Development 43009 10.79 158.40 Pak Petroleum

P.S.O

49918

128.90

106.00 32.17 100B

377928

265.93

183.25

125

200

159.89 157.56 159.49

1.09

390279

160.20

136.30

82.5

11950

7.88 190.89

194.90 191.10 193.72

2.83

438600

214.10

168.70

130

20B

2365

6.04 249.98

257.20 250.20 255.59

5.61

2162689 262.40

213.17

180

255

1.70

49630

87.39

48.26

1715

81.11

4.79 279.05

Shell Gas LPG

226

35.00

Shell Pakistan

685 10.14 196.00

83.18

81.01

82.81

Open 1,162.27 Turnover 524,291 P/E (x) 4.18 Paid up Cap(mn)

101

Atlas Honda

626

Dewan Motors

890

Open

6.91 97.96

General Tyre

1.45

598 18.17 22.35

Fatima Fertilizer

Fauji Fert. Bin Qasim ICI Pakistan

Mandviwala Nimir Ind Chemical Sitara Peroxide

5.14

4.80

4.90 0.09

7521

6.09

4.03

2nd Resistance

12.24

PE 10 E (x)

4.26

Ghani Automobile Ind

200

6.64

4.49

5.75

4.25

4.25 -0.24

7012

5.75

3.55

Pivot

12.00

PBV (x)

2.40

13.11

13.40

144527 13.40

9.65

195933 271.90 212.29

100

150

85486

81.00

69.25

10453

27.58

17.92

20B

1428

2049032 185.59

165.60

182.59 178.21 181.76 3.58 9.99

9.74 -0.13

794102

11.74

111.00 108.80 109.08 -0.88

883999

111.65

33.90

9.70

139978

33.05

33.72 0.71

135.50 132.70 133.77 1.07 12.18

11.90

11.94 -0.11

6010B 40R

3.57 19.28

9.02

10B

High Low 1,536.89 1,491.53 Total cos Defaulter cos P/BV (x) ROE (%) 10.22 30.30

Close 1,521.86 Listed cap 11,335.33 mn Payout (%) 30.57

Paid up Cap(mn)

Open

High

Low

Close Chg

AL-Noor Sugar

186

5.08

47.50

50.00

47.50

50.00

2.50

90391

50.00

39.25

Ansari Sugar

244

0.24

5.07

5.25

5.00

-0.07

9500

6.00

4.03

Chashma Sugar

287

1.12

13.41

14.24

13.00

13.87

0.46

16326

14.24

8.50

Habib Sugar

600

7.13

34.48

35.35

34.40

34.60

0.12

125910 36.00

25.20

25B

Company

Volume

Last 60 days High Low

17.5

256527

138.00

113.00

Habib-ADM Ltd

200

11.57

12.80

12.59

12.50

-0.30

8666

16.98

11.90

12946537 12.18

7.44

Mirza Sugar

141

0.37

5.71

6.05

5.70

5.93

0.22

44531

6.35

4.20

Quice Food

107

2.10

2.05

2.06

-0.04

5500

3.40

1.60

Sanghar Sugar

119

1.00

13.99

14.00

13.50

13.92

-0.07

93932

14.90

11.50

1.65

1.83

1.40

1.67 0.02

200613

3.00

0.80

1.41

1.50

1.40

1.49 0.08

476672

1.65

1.16

551 15.53

14.23

14.55

14.05

14.29 0.06

571913

14.55

7.67

Shakarganj Mills

Performance of SR Forestry & Paper Index High Low 1,087.76 1,050.15 Total cos Defaulter cos P/BV (x) ROE (%) 0.41 7.47

Close 1,084.90 Listed cap 1,186.83 mn Payout (%) 25.28

Open

High

Low

Close Chg

Volume

Tandlianwala

695

5.25

1177

299.09

30.50

Change % Change 19.92 1.87 Market cap 200-Day High 3,006.45 mn Div Yield (%) 200-Day Low 4.56 -

Last 60 days High Low

Century Paper

707

16.10

16.85

16.05

16.75 0.65

100508

21.80

15.28

Security Paper

411

6.05

39.00

39.75

38.00

39.18 0.18

12002

47.74

38.00

2009 Div BR (%) (%) - 425R 50

5.70

4.46

5.48

0.23

8965

6.40

3.02

32.90

31.50

32.90

2.40

12901

35.50

26.56

HOUSEHOLD GOODS Performance of SR Household Goods Index Open 1,106.08 Turnover 199,219 P/E (x) 3.85

2010 Div BR (%) (%)

Paid up Cap(mn)

Company

Open

High Low 1,119.68 1,076.73 Total cos Defaulter cos P/BV (x) ROE (%) 0.41 10.64

High

Low

Close Chg

Close 1,079.37 Listed cap 3,763.71 mn Payout (%) 6.27

Volume

Change % Change -26.70 -2.41 Market cap 200-Day High 5,106.90 mn Div Yield (%) 200-Day Low 1.63 -

Last 60 days High Low

INDUSTRIAL METALS AND MINING Pak Elektron

Performance of SR Industrial Metals and Mining Index

Company

High Low 946.40 914.41 Total cos Defaulter cos P/BV (x) ROE (%) 0.96 33.10

Close 929.07 Listed cap 3,596.11 mn Payout (%) 30.91

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

565

3.91

24.60

25.83

24.66

25.00 0.40

27897

Crescent Steel

Change % Change 14.88 1.63 Market cap 200-Day High 8,899.08 mn Div Yield (%) 200-Day Low 10.61 -

Last 60 days High Low 27.90

2009 Div BR (%) (%)

23.75

Dost Steels Ltd

675

2.91

3.00

2.80

2.94 0.03

101705

3.39

1.65

Huffaz Pipe

555

9.33

15.18

15.74

14.90

14.93 -0.25

22459

16.75

12.25

30B

1199

9.63

44.83

46.90

44.75

46.20 1.37

34025

64.25

44.00

20B

International Ind

CONSTRUCTION AND MATERIALS Performance of SR Construction and Materials Index Open 986.94 Turnover 11,508,090 P/E (x) 7.04 Company

Paid up Cap(mn)

Al-Abbas Cement

Open

High

High Low 1,010.12 979.38 Total cos Defaulter cos P/BV (x) ROE (%) 0.50 7.10 Low

Close Chg

Close 999.83 Listed cap 54,792.74 mn Payout (%) 19.04

Change % Change 12.89 1.31 Market cap 200-Day High 71,528.97 mn Div Yield (%) 200-Day Low 2.71 -

Last 60 days High Low

Volume

2009 Div BR (%) (%)

Tariq Glass Ind

2010 Div BR (%) (%)

1828

3.21

3.41

3.18

3.25 0.04

27360

4.20

2.80

Attock Cement

866

6.62

60.84

63.00

60.56

62.92 2.08

89624

69.86

57.60

20B

- 100R

Berger Paints

182

17.35

17.79

17.10

17.61 0.26

8904

19.20

14.01

- 122R

Cherat Cement

956 27.45

12.32

12.40

11.55

12.08 -0.24

84950

12.75

9.51

2009 Div BR (%) (%)

1174

3.47

13.76

13.98

13.51

13.76 0.00

180144

15.43

12.25

231

2.02

16.80

17.10

16.81

16.90 0.10

18302

18.80

14.50

Dandot Cement

948

2.40

3.19

2.30

2.91 0.51

8449

3.19

1.09

3574

1.61

1.80

1.58

1.67 0.06

1519029

1.99

1.30

DG Khan Cement Ltd

3651 120.79

28.40

29.25

28.50

28.99 0.59

5477816

31.05

23.02

20R

Fauji Cement

6933 15.27

4.96

5.06

4.92

5.04 0.08

425542

5.50

4.52

10B

Open 947.55 Turnover 12,046,405 P/E (x) 6.66 Paid up Cap(mn)

Company

Amtex Limited XD

2415

Azgard Nine

4493

Bata (Pak)

Open

High

High Low 966.19 945.11 Total cos Defaulter cos P/BV (x) ROE (%) 0.58 8.64 Low

Close Chg

Close 959.06 Listed cap 47,070.70 mn Payout (%) 16.68

Volume

Change % Change 11.51 1.22 Market cap 200-Day High 124,381.71 mn Div Yield (%) 200-Day Low 2.50 -

Last 60 days High Low

10.45

4.78

4.84

4.51

4.60 -0.18

1071622 19.70

4.40

10.62

11.24

10.55

11.05 0.43

1982664 12.32

5.17 623.71 624.18 593.01 623.42 -0.29

7712

2009 Div BR (%) (%)

2010 Div BR (%) (%)

8.80

747.48 436.00

120

Chenab Limited

1150

3.35

3.26

3.32 -0.03

17000

3.95

3.00

Colony Mills Ltd

2442

4.14

2.66

2.97

2.50

2.65 -0.01

99495

3.45

2.23

Crescent Fibres Ltd XD 124

7241

0.49

10.51

11.48

10.00

10.50 -0.01

18.35

7.66

600

1.89

2.00

1.81

1.94 0.05

120553

2.37

1.44

Dewan Farooque Spin. 600

5.65

6.40

8.00

6.51

7.00 0.60

110020

8.00

2.05

Dewan Khalid Textile

0.18

2.49

2.35

2.00

2.34 -0.15

33063

2.85

0.26

234

0.55

49.49

51.96

48.60

50.45 0.96

16500

52.20

33.80

Hira Textile Mills Ltd XD 716

0.77

4.05

4.24

3.99

4.09 0.04

281080

4.88

3.02

Ibrahim Fibres XD

3105

2.90

38.29

39.00

36.50

36.95 -1.34

37212

40.30

34.05

Idrees Textile XD

180

3.48

3.20

3.20 0.00

8500

5.35

2.56

Kohinoor Textile

1455

3.99

5.80

5.87

5.25

5.59 -0.21

41169

6.30

4.30

D S Ind Ltd

Gadoon Textile XD

1.77

1.90

1.75

1.83 0.06

39042

2.20

1.72

6.21

7.24

6.22

7.02 0.81

337676

7.24

5.50

Nishat (Chunian) XD 1586

1.98

22.95

24.13

22.70

23.84 0.89

3471032 25.10

15.25

50R

Lucky Cement

3234

6.62

72.84

73.85

72.10

73.72 0.88

2925003

79.98

64.30

Nishat Mills XD

3516

4.66

54.18

54.64

52.80

54.31 0.13

3687404 57.65

40.81

Maple Leaf Cement

5261

1.35

2.81

2.93

2.82

2.90 0.09

163575

3.40

2.51

Pioneer Cement

2228

7.43

8.20

7.36

7.79 0.36

15507

8.58

6.90

560

2.20

6.75

6.51

6.51 -0.24

11510

7.48

5.16

12.5

798 509.25

20.00

20.44

18.82

20.37 0.37

12311

22.24

17.74

50R

0.45

29.40

29.50

28.01

28.59 -0.81

6314

31.03

25.71

7.5

185

1.11

14.50

14.55

13.50

14.49 -0.01

7084

21.47

12.51

GENERAL INDUSTRIALS

Open

High

Low

Close Chg

Volume

2.01

53.85

56.47

52.50

56.47 2.62

102622

56.47

ECOPACK Ltd

230

1.94

2.10

2.00

2.09 0.15

Packages Ltd

844 53.83 105.75

Cherat Papersack

108.40 104.25 104.96 -0.79

10002 419564

2009 Div BR (%) (%)

34.00

2010 Div BR (%) (%)

25B

2.64

1.70

122.99

98.00

32.5

250

Reliance Weaving

1.60

Company

Paid up Cap(mn)

Open

Ghandhara Ind

213 10.18

10.97

Hinopak Motor

124

- 136.54

Millat Tractors XB

366

6.34 483.74

High

Low

11.65

10.70

Volume

10.99

0.02

Last 60 days High Low

2009 Div BR (%) (%)

10.55

2010 Div BR (%) (%)

18.80

6331

143.41

108.11 17.15

Company

Pak Int Container Terminal 1092 PNSC

1321

Open

486.96 482.00 484.42

90037

597.90

390.00

25B

650

25B

High

Low

Close Chg

Close 746.59 Listed cap 3,242.17 mn Payout (%) 11.08

Volume

1.38

9.39

9.50 0.23

13014

12.00

7.60

- 25SD

Sargodha Spinning XD 312

0.34

2.00

1.98

1.76

1.76 -0.24

5601

2.50

0.50

Saritow Spinning

133

0.44

2.63

2.69

2.00

2.65 0.02

5101

2.99

1.01

Service Ind

120

7.23 191.47

120342 255.29 169.00

200

Shahtaj Textile XD

211.09 195.00 211.09 19.62

17.50

17.75

17.01

17.69 0.19

6926

21.90

15.61

Thal Limited

307

4.16

98.70

99.24

96.30

97.37 -1.33

91492

112.80

86.50

20B

Treet Corp

418

8.26

50.82

54.24

50.76

51.86 1.04

659253

55.25

37.20

Open 871.52 Turnover 42,758 P/E (x) 6.77

450

Company

GlaxoSmithKline

Paid up Cap(mn)

1707

High Low 882.34 869.22 Total cos Defaulter cos P/BV (x) ROE (%) 1.51 22.31

Open

High

Low

80 20B -

12.79

70.85

71.15

70.00

Close 876.89 Listed cap 3,904.20 mn Payout (%) 44.54

Change % Change 5.37 0.62 Market cap 200-Day High 29,175.90 mn Div Yield (%) 200-Day Low 6.58 -

Close Chg

Volume

Last 60 days High Low

71.10

19295

78.15

0.25

65.00

2009 Div BR (%) (%)

2010 Div BR (%) (%)

FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 1,125.76 Turnover 4,435,771 P/E (x) 6.17

Performance of SR Industrial Transportation Index

Paid up Cap(mn)

2.40

9.68

INDUSTRIAL TRANSPORTATION High Low 758.36 741.86 Total cos Defaulter cos P/BV (x) ROE (%) 1.47 25.53

43191

Performance of SR Pharma and Bio Tech Index

24698

Open 754.81 Turnover 44,905 P/E (x) 5.78

1.51 -0.09

9.27

Change % Change 3.20 0.21 Market cap 200-Day High 31,670.36 mn Div Yield (%) 200-Day Low 16.36 -

143.25 129.50 131.99 -4.55 0.68

1.45

PHARMA AND BIO TECH

Close 1,518.71 Listed cap 1,336.62 mn Payout (%) 131.49

Close Chg

1.66

0.66

INDUSTRIAL ENGINEERING High Low 1,532.90 1,502.45 Total cos Defaulter cos P/BV (x) ROE (%) 3.06 38.02

Change % Change -8.22 -1.09 Market cap 200-Day High 13,046.24 mn Div Yield (%) 200-Day Low 1.92 -

Last 60 days High Low

2009 Div BR (%) (%)

18.68

Interest Expense

1st Support

23.67

Profit after Taxation

1,101.05

2nd Support

23.47

EPS 10 (Rs)

1st Resistance

24.10

Book value / share (Rs)

2nd Resistance

24.33

PE 11 E (x)

1.98

Pivot

23.90

PBV (x)

0.89

931.47 7.89 26.79

NCL closed up 0.89 at 23.84. Volume was 28 per cent below average and Bollinger Bands were 69 per cent wider than normal. The company's profit after taxation stood at Rs477.454 million which translates into an Earning Per Share of Rs3.01 for the 1st quarter of current fiscal year (1QFY11). NCL is currently 27.6 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into NCL (mildly bullish). Trend forecasting oscillators are currently bullish on NCL.

WorldCall Telecom Limited

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

60.17

Total Assets (Rs in mn)

17,566.02

MA (10-day)

2.53

Total Equity (Rs in mn)

11,379.05

MA (100-day)

2.70

Revenue (Rs in mn)

MA (200-day)

3.52

Interest Expense

1st Support

2.60

Loss after Taxation

2nd Support

2.52

EPS 09 (Rs)

1st Resistance

2.78

Book value / share (Rs)

2nd Resistance

2.88

PE 10 E (x)

Pivot

2.70

PBV (x)

8,408.28 523.03 (490.82) (0.570) 13.22 0.21

WTL closed up 0.16 at 2.74. Volume was 30 per cent above average and Bollinger Bands were 6 per cent wider than normal. The company's loss after taxation stood at Rs744.23 million which translates into a Loss Per Share of Rs0.86 for the nine months of current calendar year (9MCY10). WTL is currently 21.9 per cent below its 200-day moving average and is displaying a downward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of WTL at a relatively equal pace. Trend forecasting oscillators are currently bearish on WTL.

Sui Southern Gas Company Limited

25 45R

308

Performance of SR Industrial Engineering Index Open 1,515.50 Turnover 126,468 P/E (x) 8.04

4,432.51 13,343.54

MA (200-day)

2010 Div BR (%) (%)

7.22

72.88

73.25

71.63

72.22

-0.66

36842

80.00

60.05

20B

40.33

37.80

37.94

37.02

37.10

-0.70

8063

41.00

34.50

Fundamental Highlights As on Jun 30, 2010

Technical Analysis

Ravi Textile

Change % Change 12.93 1.40 Market cap 200-Day High 34,975.52 mn Div Yield (%) 200-Day Low 5.81 -

115

Company

Pak Synthetic Premium Textile XD Prosperity

Performance of SR General Industrials Index

Last 60 days High Low

14,251.88

Performance of SR Personal Goods Index

1760

Paid up Cap(mn)

Revenue (Rs in mn)

1288

Close 938.95 Listed cap 3,043.31 mn Payout (%) 15.55

Total Equity (Rs in mn)

17.95

- 10B

- 17.5

Flying Cement Ltd

High Low 952.35 920.83 Total cos Defaulter cos P/BV (x) ROE (%) 1.17 43.91

Total Assets (Rs in mn)

22.83

MA (100-day)

2010 Div BR (%) (%)

Kohat Cement

Open 926.02 Turnover 568,521 P/E (x) 2.67

67.31

MA (10-day)

Dewan Cement

Thatta Cement

RSI (14-day)

PERSONAL GOODS

2010 Div BR (%) (%)

Fundamental Highlights As on Jun 30, 2010

Technical Analysis

Nishat (Chunian) Limited

2010 Div BR (%) (%)

Open 914.19 Turnover 188,150 P/E (x) 2.91

2009 Div BR (%) (%)

26.59

LOTPTA closed down -0.11 at 11.94. Volume was 36 per cent below average and Bollinger Bands were 100 per cent wider than normal. The company's profit after taxation stood at Rs3.186 billion which translates into an Earning Per Share of Rs2.10 for the nine months of current calendar year (9MCY10). LOTPTA is currently 22.9 per cent above its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into LOTPTA (bullish). Trend forecasting oscillators are currently bullish on LOTPTA. Momentum oscillator is currently indicating that LOTPTA is currently in an overbought condition.

Change % Change 8.09 0.53 Market cap 200-Day High 196,911.28 mn Div Yield (%) 200-Day Low 0.91 -

33.90

FORESTRY AND PAPER

Company

Open 1,513.77 Turnover 504,753 P/E (x) 33.72

1920791

1106

Open 1,064.98 Turnover 112,511 P/E (x) 5.55

10 20B

Performance of SR Food Producers Index

2010 Div BR (%) (%)

102.96 131.5

12.50 12.60 -0.51

6.18 260.34 271.90 260.30 270.62 10.28

FOOD PRODUCERS

Change % Change 15.37 1.25 Market cap 200-Day High 276,209.42 mn Div Yield (%) 200-Day Low 6.25 -

1.62 -0.05

4.98

4.81

19.10 19.13 -0.15

1.61

2.234

3.40

73.25 74.06 0.65

1.70

307.33 3,383.27

450

19.50

7,536.40

Ghandhara Nissan

76.75

Paid up Cap(mn)

150

12.05

Book value / share (Rs)

823 11.79 73.41

10B

7.54 132.70

12.10

21.00

Sazgar Engineering

4.26

1st Resistance

26.70

Pak Suzuki

15142

6601

1.28

1388

Lotte Pakistan

21.01 21.08 -1.27

155.38

33.01

EPS 09 (Rs)

1.82

6.36

Profit after Taxation

11.76

330

182.00

9341

11.86

2nd Support

182.05

31458

9.87

1st Support

215.20

171.30 168.30 169.04 0.21

27843

7.90 109.96

1.81

6785

200.94 196.00 197.81

22000

Fauji Fertilizer XD

786

66.90

Interest Expense

18,976.36 38,552.26

1.16

Honda Atlas Cars

87.99

9.80

Total Equity (Rs in mn)

1.82

30064

Indus Motors

12116

9.99 178.18

22.53

1.49 0.04

78.75 2.73

3277

1.41

77.05

Engro Corporation Ltd

1.50

79.80

Revenue (Rs in mn)

MA (200-day)

Total Assets (Rs in mn)

76.02

8.83

250 10.82

11.36

MA (100-day)

30B

2009 Div BR (%) (%)

76.10

MA (10-day)

Close 1,240.34 Listed cap 52,251.88 mn Payout (%) 48.81

RSI (14-day)

92.00

High Low 1,254.54 1,221.39 Total cos Defaulter cos P/BV (x) ROE (%) 2.73 35.00

Fundamental Highlights As on Dec 31, 2009

Technical Analysis

122.51

27.32

Last 60 days High Low

1.67

100 20B

20B

233.10

Volume

7968

100

40.28

Close Chg

7.01 168.83

97.00 99.21 1.25

2010 Div BR (%) (%)

286.97

Low

3663

25216 194.25 131.00

2009 Div BR (%) (%)

754940

High

1203

99.79

Last 60 days High Low

37069

Open

Dewan Salman

Volume

4.17

35.00

Dawood Hercules

Close Chg

Lotte Pakistan PTA Ltd

Change % Change 24.98 2.15 Market cap 200-Day High 42,655.96 mn Div Yield (%) 200-Day Low 4.88 -

2.50

38.57

Open 1,224.97 Turnover 20,933,668 P/E (x) 7.80

BOC (Pak)

Low

4.66 156.50 159.50 155.26 156.07 -0.43

Performance of SR Chemicals Index

Paid up Cap(mn)

High

Close 1,187.25 Listed cap 6,768.53 mn Payout (%) 20.42

37.50

284.25 277.52 283.22

CHEMICALS

Company

High Low 1,201.56 1,158.40 Total cos Defaulter cos P/BV (x) ROE (%) 1.06 25.35

Alert ! Unusual Movements

10,596.46 10,611.06 10,457.09 h134.83

AUTOMOBILE AND PARTS

853

350

KSE 30 Index Current High Low Change

7,628.24 7,641.37 7,545.59 h64.05

Performance of SR Automobile and Parts Index

Attock Petroleum

Pak Refinery Limited

Current High Low Change

OIL AND GAS

Attock Refinery

Pak Oilfields XD

All Share Index

10,966.00 10,984.56 10,841.76 h91.98

Performance of SR Oil and Gas Index Open 1,401.64 Turnover 9,961,749 P/E (x) 10.52 Company

KSE 100 Index

Symbols

Volume

Company

Paid up Cap(mn)

High Low 1,162.24 1,116.00 Total cos Defaulter cos P/BV (x) ROE (%) 0.79 12.84

Close 1,154.45 Listed cap 50,077.79 mn Payout (%) 62.56

Open

High

Low

Close Chg

Volume

Pakistan Telecomm Co A37740 13.03

Change % Change 28.69 2.55 Market cap 200-Day High 79,810.93 mn Div Yield (%) 200-Day Low 10.14 -

Last 60 days High Low

2009 Div BR (%) (%)

2010 Div BR (%) (%)

19.10

19.65

18.95

19.55 0.45

2552830

19.76

17.32

Telecard XD

3000

0.71

2.32

2.45

2.31

2.39 0.07

246136

2.69

1.80

- 17.5 -

WorldCall Tele

8606

2.58

2.80

2.51

2.74 0.16

1636154

2.98

2.30

RSI (14-day)

35.37

Total Assets (Rs in mn)

MA (10-day)

23.92

Total Equity (Rs in mn)

MA (100-day)

21.64

Revenue (Rs in mn)

110,759.62

MA (200-day)

20.19

Interest Expense

5,015.89

1st Support

21.96

Profit after Taxation

4,399.15

2nd Support

21.47

EPS 10 (Rs)

6.554

1st Resistance

23.09

Book value / share (Rs)

20.97

2nd Resistance

23.73

PE 11 E (x)

3.39

Pivot

22.60

PBV (x)

1.07

14,072.35 127,613.53

SSGC closed down -1.76 at 22.49. Volume was 11 per cent above average and Bollinger Bands were 16 per cent wider than normal. The company's profit after taxation stood at Rs1.113 billion which translates into an Earning Per Share of Rs1.66 for the 1st quarter of current fiscal year (1QFY11). SSGC is currently 11.4 per cent above its 200-day moving average and is displaying a downward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of SSGC at a relatively equal pace. Trend forecasting oscillators are currently bearish on SSGC.

BOOK CLOSURES Company

From

Fauji Fertilizer Co (TFC) Telecard Globe Textile Mills (OE) Chenab Faysal Bank (TFC) Allied Bank Dewan Salman Fibre AKD Capital Pakistan General Insurance PICIC Energy Fund Thal Limited Glaxo SmithKline Pakistan Ravi Textile Mills Dewan Automotive Engineering Dewan Cement Sui Northern Gas Pipelines Sui Southern Gas Pipelines Nadeem Textile Mills Fazal Cloth Mills Sana Industries East West Insurance Co MCB Bank Dawood Hercules Chemicals Pakistan Premier Fund Engro Corporation (Standalone) Fauji Fertilizer Bin Qasim Oil and Gas Development Co Siemens Pakistan

21-Nov 21-Nov 21-Nov 22-Nov 22-Nov 22-Nov 23-Nov 23-Nov 23-Nov 23-Nov 23-Nov 23-Nov 23-Nov 23-Nov 23-Nov 24-Nov 24-Nov 24-Nov 26-Nov 27-Nov 01-Dec 03-Dec 07-Dec 07-Dec 07-Dec 14-Dec 14-Dec 20-Dec

27-Nov 27-Nov 29-Nov 30-Nov 30-Nov 05-Dec 29-Nov 30-Nov 29-Nov 30-Nov 30-Nov 30-Nov 30-Nov 30-Nov 30-Nov 30-Nov 30-Nov 30-Nov 03-Dec 03-Dec 07-Dec 10-Dec 13-Dec 14-Dec 21-Dec 20-Dec 21-Dec 29-Dec

D/B/R 20(iii) 10F 20(B) 5 20 20 100SD 10(B) 30(iii) 20(ii) 20(ii) 12.50(iii) 15(i) 600

INDICATIONS # Extraordinary General Meeting

Spot AGM/Date 08-Nov 08-Nov 08-Nov 10-Nov 11-Nov 15-Nov 23-Nov 25-Nov 29-Nov 29-Nov -

29-Nov 30-Nov 29-Nov 30-Nov 29-Nov 30-Nov 30-Nov 30-Nov 30-Nov 30-Nov 30-Nov 30-Nov 30-Nov 29-Nov 03-Dec 14-Dec 29-Dec

Monday, November 22, 2010 Atlas Insurance

ELECTRICITY

EFU General Insurance

Performance of SR Electricity Index

Habib Insurance

Open 1,184.32 Turnover 21,321,195 P/E (x) 13.08

High Low 1,228.83 1,176.07 Total cos Defaulter cos P/BV (x) ROE (%) 1.22 9.35

Company

Paid up Cap(mn)

Open

High

Low

Close Chg

Genertech

198

0.84

1.08

0.80

0.80 -0.04

11572

6.51

34.42

35.90

34.16

Hub Power

35.54

1.12

Close 1,210.34 Listed cap 95,369.29 mn Payout (%) 104.13

Change % Change 26.02 2.20 Market cap 200-Day High 98,668.32 mn Div Yield (%) 200-Day Low 7.96 -

Last 60 days High Low

Volume 71175

2009 Div BR (%) (%)

2010 Div BR (%) (%)

Pak Reinsurance Pak Gen Insurance

5.62

33.11

35.34

34.00

35.34 2.23

9079

35.34

27.10

10B

44.46

46.68

44.31

45.11 0.65

205075

48.63

34.76

8.7B

400

2.85

11.40

12.40

11.01

11.99 0.59

32462

12.40

10.04

718 15.58

84.00

86.50

83.00

83.95 -0.05

29407

86.69

66.02

20B

3000 40.87

15.61

16.35

15.49

15.94 0.33

1612315

17.05

12.50

6.01

7.01

6.02

6.20 0.19

7.04

5.06

25B

250

1.47

PICIC Ins Ltd

350

6.64

7.00

6.00

6.59 -0.05

177358

7.00

1.66

Premier Insurance

303

5.31

9.77

9.87

9.60

9.83 0.06

5595

9.91

8.00

15B

Silver Star Insurance

253

4.11

6.95

7.00

6.56

6.61 -0.34

5608

8.17

6.00

20B

0.51

12894749 37.24

32.75

33.5

LIFE INSURANCE

Performance of SR Life Insurance Index

Japan Power

1560

1.58

1.67

1.54

1.55 -0.03

66058

2.25

0.70

7932

2.15

2.40

2.15

2.28

0.13

1264631

2.50

1.94

31R

Kohinoor Energy

1695 10.82

19.18

20.39

19.25

19.48

0.30

27738

26.50

19.10

Kot Addu Power XD

8803

4.77

39.73

40.11

39.00

39.26 -0.47

1434367

42.95

38.35

64.5

Nishat Chunian Power Ltd 3673

3.02

13.88

13.98

13.60

13.75 -0.13

1229579

14.85

9.50

3541 23.87

14.97

15.05

14.55

14.80 -0.17

4144587

16.10

9.50

Southern Electric

1367

2.10

2.27

2.11

2.18

Tri-star Power XD

150

1.05

1.13

0.80

0.81 -0.24

174706

2.90

2.05

13263

1.75

0.33

GAS WATER AND MULTIUTILITIES

Open 871.66 Turnover 57,819 P/E (x) 61.23 Paid up Cap(mn)

Company EFU Life Assurance

Open

850 44.33

75.50

Performance of SR Gas Water and Multiutilities Index High Low 1,804.07 1,646.72 Total cos Defaulter cos P/BV (x) ROE (%) 1.22 11.41

Close 1,668.14 Listed cap 12,202.80 mn Payout (%) 66.79

Change % Change -130.99 -7.28 Market cap 200-Day High 35,852.22 mn Div Yield (%) 200-Day Low 6.26 -

Open

High

Low

Close Chg

Volume

Last 60 days High Low

Sui North GasSPOT

5491

9.21

33.37

33.40

30.70

30.93 -2.44

1373303

34.75

25.50

Sui South GasXDXB

8390

3.39

24.25

24.35

22.11

2009 Div BR (%) (%)

22.49 -1.76

1116372

30.70

16.50

25B

Paid up Cap(mn)

Company

Open

High

Low

Close Chg

Change % Change 11.82 1.15 Market cap 200-Day High 633,319.67 mn Div Yield (%) 200-Day Low 5.41 -

Last 60 days High Low

Volume

2009 Div BR (%) (%)

2010 Div BR (%) (%)

1.10

0.42

35.23

24.40

25B

20B

5661476

26.36

20.90

2.70

1.51

Dawood Equities IGI Investment Bank

120447

2.80

1.17

9.00

6.16

11.5

Ist Dawood Bank

626

0.67

1.84

1.87

1.80

1.87 0.03

21600

2.84

1.17

Jah Siddiq Co

7633

11.76

12.78

11.69

12.55 0.79

12.78

8.80

-243.778B 10

JOV and CO

508

4.22

4.55

4.11

4.34 0.12

543754

5.38

1.96

JS Global Cap

500

8.17

29.09

30.74

29.00

30.40 1.31

31019

40.30

24.25

150

6.77

7.35

6.75

7.07 0.30

788557

7.44

5.10

2.31

2.50

2.11

2.40 0.09

285949

2.70

1.35

-231.08R

JS Investment Pervez Ahmed Sec

Atlas Bank

5001

1.53

1.80

1.53

1.56

0.03

50207

2.84

1.50

10.19

7.32

129097

33.90

29.10

20B

Bank Of Khyber

5004

5.32

3.96

4.49

3.62

3.99

0.03

20753

4.70

2.50

Bank Of Punjab

5288

9.27

9.56

9.20

9.43

0.16

2332655

10.50

7.35

3.34

0.01

10019

6.60 104.21

Habib Metropolitan Bank 8732 JS Bank Ltd KASB Bank Ltd

9509

MCB Bank Ltd

7602

Mybank Ltd National Bank Network Mic Bank NIB Bank

3.69

2.31

17.10

12.85

20B -

EQUITY INVESTMENT INSTRUMENTS Performance of SR Equity Investment Instruments Index Open 1,071.83 Turnover 2,294,472 P/E (x) 17.09

High Low 1,095.18 1,058.18 Total cos Defaulter cos P/BV (x) ROE (%) 0.38 2.21

Close 1,081.57 Listed cap 29,771.58 mn Payout (%) 104.74

Change % Change 9.75 0.91 Market cap 200-Day High 15,539.19 mn Div Yield (%) 200-Day Low 9.52 -

1.39

184717

107.15

92.00

10B

20.66

21.17

0.23

32175

23.30

18.02

16B

2.75

2.80

2.75

0.00

29008

3.00

2.00

66R

2.39

2.40

2.30

2.35 -0.04

37581

3.22

2.03

26B

AL-Meezan Mutual F.

1375

5.29

6.34

6.39

6.20

6.35 0.01

17291

7.20

5.85

18.5

1255408 209.75

180.60

110

10B

AL-Noor Mod. XD

210

4.83

2.85

3.80

2.80

2.90 0.05

9700

3.80

2.10

205.10 199.00 204.47

3.08

5304

2.00

2.04

1.95

13455

5.77

65.84

66.30

65.26

66.03

1.98 -0.02 0.19

2859359

73415

300

1.23

1.33

1.15

1.33

0.10

40437

2.78

2.89

2.73

2.78

0.00

B R R Guardian Mod.

780

3.27

1.29

1.49

1.32

1.44 0.15

110941

1.68

0.90

Crescent St Mod.XD

200

1.48

0.60

0.68

0.52

0.59 -0.01

96288

1.10

0.16

1.2

7493

1.46

0.26

Elite Cap Mod.XD

113

3.24

2.10

3.09

2.10

2.59 0.49

203000

3.09

1.65

4.5

399868

3.25

2.42

Equity Modaraba

524

8.44

1.35

1.15

1.35 0.00

29513

1.50

0.76

5.20

5.29 -0.62

401885

8.98

5.20

1.85

0.03

101001

2.65

1.51

-63.46R

Silkbank Ltd

26716

2.69

2.74

2.65

2.65 -0.04

250462

3.30

2.44

Soneri Bank

6023

7.10

7.52

7.00

7.29

171716

8.00

5.01

Stand Chart Bank

38716 11.08

7.50

7.69

7.00

7.20 -0.30

73426

8.00

6.00

United Bank Ltd

12242

59.50

57.51

59.50

49.90

10B

1079213

NON LIFE INSURANCE Performance of SR Non Life Insurance Index

1237 23.74

78.85

High 82.80

High Low 754.98 721.80 Total cos Defaulter cos P/BV (x) ROE (%) 0.64 5.20 Low 78.53

Close Chg 81.91 3.06

2010 Div BR (%) (%)

5.80

Open

2009 Div BR (%) (%)

1.90

Last 60 days High Low

Volume

25B

5.91

Open 726.29 Turnover 4,362,195 P/E (x) 12.28

Close Chg

1.82

0.82

Low

58.76

High

1.62

57.94

Open

60.51

17180

6.90

2.75

14335

0.19

Paid up Cap(mn)

Company

70.75

Royal Bank Ltd

Adamjee Insurance

21.25

9.06 201.39

Paid up Cap(mn)

775

20.94

Samba Bank

Company

1000 29.46

17130244

6.47

6128

105.70 104.00 105.60

50451 315144

14055

5003

443050

1.99 0.06 2.75 0.14

0.12

25.95 0.79

1.56

6.89 -0.45

0.18

24.92

2.19

2.60

10B

9.70

26.36

1.93

6.46

20B

33.30

25.16

2010 Div BR (%) (%)

2.80

9.56

4.77

250

2009 Div BR (%) (%)

6.89

32.75

3750

Last 60 days High Low

Volume

2.61

14.00

9.75

Close Chg

7.34

48.51

33.90

Low

600 689.00

16.65

9.52

High

2121 17.19

58.89

33.18

Open

Invest and Fin Sec XD

836286

7.18

Change % Change 16.49 3.96 Market cap 200-Day High 30,186.92 mn Div Yield (%) 200-Day Low 1.98 -

145278

799028

7322

Close 432.41 Listed cap 30,336.44 mn Payout (%) 99.56

156580

0.23

Bank AL-Habib

High Low 441.43 411.40 Total cos Defaulter cos P/BV (x) ROE (%) 0.45 0.91

0.55 -0.05

0.93

Habib Bank Ltd

26.85 0.35

15.85

14.40 -2.41

0.53

58.50

3.21

5513.33B

26.15

15.55

14.20

51.25

0.70

57.15

3.38

82.99

27.45

15.98

17.05

57608

0.60

58.89

3.33

78.02 2.52

26.50

15.62

16.81

77.49

2010 Div BR (%) (%)

1.25

57.57

4.65

81.00

2009 Div BR (%) (%)

450 13.70

7.55

5280 835.00

Last 60 days High Low

225

5.69

7309

Volume

Arif Habib Limited XB

6427

BankIslami Pak

Close Chg

AMZ Ventures

7821

Faysal Bank XB

Low

Askari Bank

13492 12.44

Change % Change 9.61 1.10 Market cap 200-Day High 10,310.17 mn Div Yield (%) 200-Day Low 5.81 -

Paid up Cap(mn)

Company

Allied Bank Limited

Bank Alfalah

Close 881.27 Listed cap 2,290.72 mn Payout (%) 355.53

High

Open 415.92 Turnover 25,123,250 P/E (x) 10.16

Arif Habib Securities

Performance of SR Banks Index High Low Close 1,051.05 1,021.15 1,043.45 Total cos Defaulter cos Listed cap - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.04 13.94 40.49

High Low 893.78 879.04 Total cos Defaulter cos P/BV (x) ROE (%) 2.36 3.85

Performance of SR Financial Services Index

2010 Div BR (%) (%)

BANKS Open 1,031.64 Turnover 11,934,624 P/E (x) 7.48

Close 741.97 Listed cap 11,111.34 mn Payout (%) 79.54

Volume 2264949

Change % Change 15.69 2.16 Market cap 200-Day High 45,909.76 mn Div Yield (%) 200-Day Low 6.47 -

Last 60 days High Low 84.15

63.05

FEROZ GHGL ZTL FIBLM NJICL SITC CPL SCLL KSTM EMCO NBF ELSM TATM WAHN FRCL JOPP DCM KOIL ABOT AGTL JKSM CJPL LEUL UNIM SALT DLL AGIC PAKMI SLYT QUAT JDMT AKDCL ADMM LAKST FIMM KOSM SHSML SSOM GATM ETNL DWSM FCSC BGL MTIL DINT JDWS DMTM HINOON ICIBL HAJT PTEC MRNS FFLM FUDLM NOPK FECS OLPL CENI COTT SPLC ARM FECTC ATEL BCL SAIF MEBL GWLC PCAL BAPL IDYM AGL PNGRS NAGC BNWM ADAMS FRSM SASML NPSM KSBP EXIDE TRSM SHTM SHDT MODAM AGIL SHNI SEARL PMRS DIIL DYNO CWSM PAKD KML SHJS SMCPL TICL CSIL KASBM BUXL YOUW BILF BROT MUKT SKFL SKRS PASM SLCL STCL GRAYS LPGL SHCI TSMF PAKT CPMFI STML TREI NATF SEL FTSM SIEM PGCL MSCL GUSM ALICO CICL BTL FASM SAPL AABS TRIBL GATI HADC TRPOL MQTM

FINANCIAL SERVICES

Paid up Cap(mn)

Company

UP TO 5000 VOLUME Symbols

- 7.8R

Nishat Power Ltd

Open 1,799.13 Turnover 2,489,675 P/E (x) 10.68

10024

1.45

KESC XR

0.08

IGI Insurance

369 1250

2009 Div BR (%) (%) 30

10B

2010 Div BR (%) (%) 10

First Dawood Mutual F.

581

0.63

1.92

2.00

1.89

2.00 0.08

159155

2.00

1.30

Golden Arrow XD

760

1.97

2.67

2.80

2.70

2.76 0.09

49133

3.88

2.32

H B L Modaraba XD

397

2.13

6.13

6.45

6.25

6.38 0.25

6475

6.80

4.80

Habib Modaraba

1008

5.60

6.20

6.50

6.20

6.50 0.30

141085

7.25

5.56

JS Growth Fund

3180 43.50

3.21

3.50

3.20

3.48 0.27

453883

3.60

2.65

JS Value Fund

1186 11.64

3.10

3.30

3.10

3.26 0.16

173843

3.50

2.31

Meezan Balanced F.

1200

5.00

5.30

5.18

5.20 -0.10

87820

7.00

5.15

15.5

Nat Bank Mod. XD

250

6.35

5.50

7.24

4.50

6.86 1.36

32411

8.00

4.50

Pak Prem Fund

1698 11.94

8.58

8.99

8.51

8.60 0.02

180107

9.44

7.00

18.6

PICIC Energy F. SPOT

1000

5.75

5.89

5.71

5.79 0.04

31963

5.95

4.00

1.68

PICIC Growth Fund

2835

5.71

8.89

9.05

8.82

8.90 0.01

259104

9.20

7.60

PICIC Inv Fund

2841

4.94

4.29

4.38

4.27

4.35 0.06

95668

4.75

3.50

Prud Modaraba 1st

872

2.05

0.99

0.90

0.90 -0.09

17425

1.20

0.70

Punjab Modaraba XD

340

1.80

1.85

1.11

1.60 -0.20

109074

1.94

0.57

Stand Chart Modaraba

454

4.26

8.88

9.23

8.70

8.70 -0.18

5329

10.99

7.75

16.5

Open

High

84.60 48.40 3.90 1.60 57.99 116.08 152.05 2.79 0.85 2.95 3.20 19.00 29.76 32.90 2.46 8.22 1.25 1.50 98.05 209.00 6.32 0.85 2.00 0.15 43.65 36.14 11.25 0.70 4.05 8.62 14.00 54.65 19.40 318.82 47.50 1.00 12.75 3.10 25.59 20.10 1.70 3.66 1.85 0.34 26.00 78.95 3.95 24.45 0.75 0.75 2.40 59.99 1.75 5.67 21.17 41.00 6.04 10.65 0.56 0.65 14.50 7.20 16.10 44.85 5.20 14.68 3.20 53.16 8.75 255.00 22.00 6.30 14.70 13.01 16.45 20.90 6.00 20.98 70.36 153.00 1.70 0.50 9.10 1.08 67.50 14.00 62.34 42.00 8.42 10.65 1.26 79.89 2.49 66.90 5.61 69.00 3.10 1.45 11.31 1.40 1.98 0.87 0.58 1.10 3.10 8.00 2.39 9.20 55.90 20.56 2.41 1.49 112.50 4.01 19.21 2.04 42.86 18.50 1.70 1271.00 19.49 6.15 6.15 18.00 56.00 47.00 32.00 128.00 94.70 2.84 41.91 0.60 0.87 6.10

86.90 49.98 4.50 1.96 57.98 118.50 153.59 2.94 0.78 3.29 3.40 18.98 32.80 34.35 2.60 8.85 1.49 1.57 99.00 209.99 6.90 0.85 2.00 0.15 48.12 39.83 11.50 0.72 4.25 10.50 15.80 57.38 20.20 328.00 50.50 1.81 12.66 3.85 25.59 21.00 1.94 3.79 1.80 0.55 26.10 80.39 4.51 24.55 0.87 0.50 2.00 60.85 1.65 5.89 23.33 40.95 6.11 11.25 1.10 0.64 14.90 8.20 17.09 46.75 5.69 15.04 3.65 54.90 8.75 274.96 22.65 6.45 15.39 13.40 16.90 20.05 6.00 21.99 71.50 155.50 2.00 0.66 9.88 1.10 68.00 14.50 62.90 44.00 10.39 11.17 1.87 79.99 2.50 72.40 5.99 73.50 4.10 1.80 12.67 1.35 2.80 1.10 0.89 0.87 3.00 8.25 2.95 9.00 57.48 20.54 2.65 1.49 112.51 4.45 20.50 2.25 43.48 18.98 1.70 1330.00 19.49 7.00 6.90 18.10 59.45 48.50 33.50 129.40 94.99 2.69 45.00 0.75 1.45 7.79

Low

85.00 48.50 3.01 1.40 57.50 114.05 151.55 2.30 0.28 2.80 2.95 18.51 30.90 32.25 2.00 7.50 1.33 1.31 98.00 206.00 5.89 0.75 2.00 0.05 45.83 37.94 10.30 0.70 3.72 9.50 14.00 54.65 19.40 318.00 47.50 0.56 12.55 3.10 24.50 20.05 1.60 3.66 1.50 0.40 25.00 78.00 3.02 24.40 0.61 0.50 1.80 56.25 1.50 5.55 21.00 39.00 6.00 10.50 0.80 0.60 14.50 7.10 16.10 44.85 4.31 14.80 3.06 51.68 8.00 248.90 21.25 5.82 14.70 12.40 16.50 20.02 5.50 21.49 68.81 150.00 1.20 0.50 8.10 1.00 67.79 14.00 62.20 39.90 7.80 9.21 1.00 79.10 1.52 67.00 5.50 69.99 3.72 1.41 10.51 1.11 1.26 0.15 0.16 0.85 3.00 8.25 1.51 8.20 51.75 19.54 2.41 1.00 112.50 4.45 18.34 1.81 42.10 18.70 1.07 1251.00 18.49 7.00 5.35 17.02 56.01 47.00 31.50 124.00 94.35 1.71 41.75 0.55 0.60 6.80

86.00 48.78 3.55 1.96 57.50 118.04 152.92 2.30 0.62 3.14 3.09 18.65 32.80 32.99 2.49 8.85 1.47 1.42 98.20 207.97 6.04 0.75 2.00 0.05 48.12 38.99 11.15 0.72 3.72 10.49 15.20 57.38 20.16 318.20 50.50 1.05 12.60 3.50 24.50 21.00 1.75 3.70 1.72 0.40 25.11 78.90 4.50 24.40 0.62 0.50 1.85 59.50 1.50 5.85 23.33 40.36 6.10 10.73 1.10 0.60 14.50 7.35 17.06 44.95 5.25 14.81 3.09 51.76 8.49 262.80 22.00 5.91 15.39 13.10 16.90 20.05 5.75 21.82 68.83 153.59 1.20 0.60 9.49 1.06 68.00 14.00 62.83 42.99 9.10 10.20 1.37 79.10 2.47 72.40 5.52 70.23 3.90 1.41 11.10 1.11 1.26 0.22 0.30 0.87 3.00 8.25 2.95 8.20 51.83 19.99 2.50 1.45 112.50 4.45 20.50 1.94 43.25 18.98 1.07 1310.68 18.49 7.00 5.40 17.02 57.70 47.00 31.50 129.40 94.43 1.71 43.75 0.70 0.60 6.81

Change

Vol

1.40 0.38 -0.35 0.36 -0.49 1.96 0.87 -0.49 -0.23 0.19 -0.11 -0.35 3.04 0.09 0.03 0.63 0.22 -0.08 0.15 -1.03 -0.28 -0.10 0.00 -0.10 4.47 2.85 -0.10 0.02 -0.33 1.87 1.20 2.73 0.76 -0.62 3.00 0.05 -0.15 0.40 -1.09 0.90 0.05 0.04 -0.13 0.06 -0.89 -0.05 0.55 -0.05 -0.13 -0.25 -0.55 -0.49 -0.25 0.18 2.16 -0.64 0.06 0.08 0.54 -0.05 0.00 0.15 0.96 0.10 0.05 0.13 -0.11 -1.40 -0.26 7.80 0.00 -0.39 0.69 0.09 0.45 -0.85 -0.25 0.84 -1.53 0.59 -0.50 0.10 0.39 -0.02 0.50 0.00 0.49 0.99 0.68 -0.45 0.11 -0.79 -0.02 5.50 -0.09 1.23 0.80 -0.04 -0.21 -0.29 -0.72 -0.65 -0.28 -0.23 -0.10 0.25 0.56 -1.00 -4.07 -0.57 0.09 -0.04 0.00 0.44 1.29 -0.10 0.39 0.48 -0.63 39.68 -1.00 0.85 -0.75 -0.98 1.70 0.00 -0.50 1.40 -0.27 -1.13 1.84 0.10 -0.27 0.71

4780 4631 4506 4458 4402 4342 4236 4193 4047 4026 4001 3943 3931 3912 3660 3659 3522 3456 3400 3258 3194 3003 3000 3000 2937 2834 2775 2763 2705 2700 2685 2626 2594 2517 2510 2507 2503 2500 2500 2457 2411 2374 2340 2292 2285 2166 2116 2079 2041 2000 1988 1972 1897 1861 1812 1712 1705 1561 1502 1501 1500 1403 1367 1233 1230 1226 1105 1105 1091 1088 1041 1005 1005 1002 1001 1000 1000 1000 902 888 871 843 829 810 774 772 769 713 703 702 672 651 643 624 620 616 603 506 503 502 501 501 501 500 500 500 451 414 413 403 402 401 400 351 347 331 330 321 303 218 216 213 211 210 203 202 202 200 179 178 172 168 159 154

BOARD MEETINGS

Hub Power Co Ltd

KSE 100 INDEX

Nishat Mills Ltd

Dera Ghazi Khan Cement Co Ltd

Company

Date

Time

Colony Sugar Mills Limited Altas Honda Limited

22-Nov 24-Nov

11:30 11:30

TECHNICAL LEVELS Company Al-Abbas Cement

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position

Fair Value

Buy

*Arif Habib Ltd

Buy

*Arif Habib Ltd

Buy

AKD Securities Ltd

43.29

Buy

AKD Securities Ltd

Positive

TFD Research

36.85

Positive

TFD Research

10,919.37

Support 2

10,878.50

MA (10-day)

10,847.28

Resistance 1

10,997.15

MA (100-day)

10,148.97

Resistance 2

11,028.30

Technical Analysis

MA (200-day)

10,066.75

Pivot

10,953.40

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

TFD Research

44.9

Technical Outlook Leverage Position

67.59 34.10 34.31 33.93 35.35 35.03

Free Float Shares (mn) 810.01 Free Float Rs (mn) 28,787.69 CFS Shares (mn) N/A CFS Rs (mn) N/A CFS Rate N/A ** NOI Rs (mn) N/A

National Bank of Pakistan

Brokerage House

Fair Value

*Arif Habib Ltd

Rs Recommendations

Brokerage House

Fair Value

*Arif Habib Ltd

Buy

AKD Securities Ltd

105.2

Buy

AKD Securities Ltd

TFD Research

72.75

Neutral

TFD Research

Buy Neutral

92.3

Positive

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

60.40 28.54 25.96 26.88 28.82 28.88

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

Rs Recommendations

182.55 5,292.11 N/A N/A N/A 33.89

24.04

TFD Research

30.5

62.55

27.70

27.05

Arif Habib Securities

63.18

25.70

25.50

26.30

26.60

26.05

Adamjee Insurance

67.91

81.15

80.35

82.75

83.55

81.95

Askari Bank

57.49

15.65

15.50

16.00

16.15

15.80

Azgard Nine

53.76

10.95

10.90

11.20

11.30

11.10

Attock Petroleum

46.77

304.90

302.30

309.45 311.40 306.85

Attock Refinery

81.00

123.45

119.70

129.30 131.35 125.50

58.56

9.65

9.55

9.75

9.85

9.70

54.09

3.25

3.20

3.40

3.45

3.30

57.71

9.35

9.25

9.55

9.65

Dewan Cement

57.07

1.60

1.55

1.75

1.85

1.70

D.G.K.Cement

60.40

28.75

28.45

29.25

29.50

29.00

Dewan Salman

52.77

1.60

1.55

1.70

1.75

Dost Steels Ltd

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

175.80 9,547.69 N/A N/A N/A 70.92

Adamjee Insurance Co Ltd

Fair Value 76

TFD Research

Positive

58.20

63.80

27.25

Bank.Of.Punjab

AKD Securities Ltd

Buy

59.90

63.35

26.40

BankIslami Pak

NML closed up 0.13 at 54.31. Volume was 57 per cent below average (consolidating) and Bollinger Bands were 29 per cent narrower than normal. NML is currently 6.5 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into NML (mildly bullish). Trend forecasting oscillators are currently bullish on NML.

AKD Securities Ltd

59.20

61.30

26.60

Bank Al-Falah

60.52 53.60 48.00 50.97 53.85 53.72

Brokerage House

56.50

62.10

51.83

Positive

DGKC closed up 0.59 at 28.99. Volume was 13 per cent below average and Bollinger Bands were 5 per cent narrower than normal. DGKC is currently 7.8 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of DGKC at a relatively equal pace. Trend forecasting oscillators are currently bullish on DGKC.

Rs Recommendations

57.50

51.58

Arif Habib Limited

Buy

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

Fair Value

74.19

Attock Cement

Buy

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

Brokerage House

Allied Bank Limited

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

Rs Recommendations Accumulate Neutral

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

52.37 74.06 69.10 70.57 73.22 72.98

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

129.35 9,535.68 N/A N/A N/A 37.95

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

52.21 65.79 65.83 70.75 65.93 65.78

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

Technical Outlook

Technical Outlook 318.37 21,021.77 N/A N/A N/A 80.79

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

59.51 19.15 18.77 19.60 19.39 19.30

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

584.63 11,429.61 N/A N/A N/A 5.30

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

67.91 77.52 75.26 92.12 82.01 80.67

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

74.22 6,079.58 N/A N/A N/A 35.96

9.45

1.65

59.27

2.90

2.85

3.00

3.05

2.95

EFU General Insurance 57.72

44.60

44.05

45.85

46.55

45.30

EFU Life Assurance

61.81

76.70

75.35

80.20

82.35

78.85

Engro Chemical

59.99

179.90

178.05

Faysal Bank

41.21

14.15

13.95

Fauji Cement

55.51

4.95

4.90

5.05

5.10

5.00

Fauji Fert Bin

74.27

33.35

32.95

34.00

34.25

33.60

Fauji Fertilizer

52.67

108.35

107.60

110.30

Habib Bank Ltd

65.40

104.50

103.40

106.20 106.80 105.10

Hub Power

67.59

34.50

33.45

ICI Pakistan

64.79

133.00

132.25

135.00 136.25 134.25

Indus Motors

83.87

264.45

258.25

274.35 278.05 268.15

183.10 184.45 181.25 14.65

36.25

14.90

14.45

111.50 109.55 36.95

35.20

J.O.V.and CO

63.58

4.25

4.15

4.50

4.65

4.40

Japan Power

48.87

1.50

1.45

1.65

1.70

1.60

JS Bank Ltd

57.28

2.65

2.55

2.80

2.85

2.70

Jah Siddiq Co

44.21

12.30

12.05

12.80

13.00

12.55

Kot Addu Power

40.34

38.90

38.50

39.80

40.30

39.40

K.E.S.C

61.58

2.15

2.35

2.45

2.30

Lotte Pakistan

76.10

11.85

11.75

12.10

12.25

12.00

Lucky Cement

52.37

73.10

72.50

74.10

74.45

73.50

MCB Bank Ltd

57.22

202.60

200.75

Maple Leaf Cement

49.84

2.85

2.75

2.95

3.00

2.90

National Bank

52.21

65.75

65.50

66.25

66.50

66.00

Nishat (Chunian)

67.31

23.65

23.45

24.10

24.30

23.90

Netsol Technologies

61.17

19.05

18.45

20.00

20.35

19.40

NIB Bank

50.45

2.75

2.65

2.85

2.95

Nimir Ind.Chemical

53.66

1.40

1.35

1.50

1.55

1.45

Nishat Mills

60.52

53.80

53.25

54.65

55.00

54.15

Oil & Gas Dev. XD

76.84

158.80

158.10

PACE (Pakistan) Ltd.

Technical Outlook

1st 2nd Pivot Resistance 3.35 3.50 3.30

59.97

Technical Outlook

Pakistan Telecommunication Co Ltd

Rs Recommendations

61.96

Technical Analysis

Fair Value

74.2

Technical Outlook

Index will continue to find its 1st support level at 10,922.25 and 2nd sup- * Target price for Dec-10 & **Net Open Interest in future market port level at 10,878.50. HUBC closed up 1.12 at 35.54. Volume was 193 per cent above average KSE 100 INDEX is currently 9.0 per cent above its 200-day moving average (trending) and Bollinger Bands were 23 per cent narrower than normal. and is displaying an upward trend. Volatility is relatively normal as compared HUBC is currently 4.7 per cent above its 200-day moving average and is to the average volatility over the last 10 trading sessions. Volume indicators displaying an upward trend. Volatility is extremely high when compared to reflect moderate flows of volume into INDEX (mildly bullish). Trend forecasting the average volatility over the last 10 trading sessions. Volume indicators oscillators are currently bullish on INDEX. Momentum oscillator is currently reflect very strong flows of volume into HUBC (bullish). Trend forecasting indicating that INDEX is currently in an overbought condition. oscillators are currently bullish on HUBC.

Lucky Cement Ltd

Brokerage House

MA (5-day)

normal. As far as resistance level is concern, the market will see major 1st

Rs Recommendations

10,922.25

resistance level at 10,997.15 and 2nd resistance level at 11,028.30, while

Fair Value

AKD Securities Ltd

Support 1

KSE 100 INDEX closed up 91.98 points at 10,966.00. Volume was 2 per

Brokerage House

*Arif Habib Ltd

70.08

cent below average and Bollinger Bands were 14 per cent narrower than

Rs Recommendations

RSI 1st 2nd (14-day) Support 55.16 3.15 3.10

47.43

2.20

2.80

2.75

205.70 206.95 203.85

2.80

160.05 160.60 159.35 2.95

3.00

2.90

Pervez Ahmed Sec

62.72

2.25

2.10

2.50

2.65

2.35

P.I.A.C.(A)

52.76

2.20

2.10

2.35

2.45

2.25

Pioneer Cement

49.47

7.45

7.10

8.05

8.30

7.70

Pak Oilfields

60.78

254.40

253.20

257.00 258.40 255.80

Pak Petroleum

59.39

192.85

191.95

194.75 195.75 193.85

Pak Suzuki

49.85

73.40

72.75

P.S.O. XD

61.51

282.60

281.95

P.T.C.L.A

59.51

19.25

18.95

75.30

76.55

74.65

284.05 284.85 283.40 19.75

19.95

19.45

Shell Pakistan

59.93

196.40

195.00

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

Sui North Gas

42.21

30.60

30.25

31.40

31.85

31.05

LUCK closed up 0.88 at 73.72. Volume was 18 per cent below average and Bollinger Bands were 6 per cent wider than normal. LUCK is currently 4.5 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into LUCK (mildly bullish). Trend forecasting oscillators are currently bullish on LUCK.

NBP closed up 0.19 at 66.03. Volume was 36 per cent below average and Bollinger Bands were 30 per cent narrower than normal. NBP is currently 1.2 per cent below its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of NBP at a relatively equal pace. Trend forecasting oscillators are currently bullish on NBP.

PTC closed up 0.45 at 19.55. Volume was 44 per cent above average and Bollinger Bands were 19 per cent narrower than normal. PTC is currently 0.2 per cent below its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of PTC at a relatively equal pace. Trend forecasting oscillators are currently bullish on PTC.

AICL closed up 3.06 at 81.91. Volume was 44 per cent above average and Bollinger Bands were 35 per cent wider than normal. AICL is currently 11.1 per cent below its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into AICL (mildly bullish). Trend forecasting oscillators are currently bullish on AICL.

Sitara Peroxide

75.50

14.10

13.90

200.10 202.35 198.65 14.55

14.75

14.30

Sui South Gas

35.37

22.00

21.50

23.10

23.75

22.60

Telecard

52.74

2.35

2.25

2.45

2.50

TRG Pakistan

55.34

4.25

4.20

4.35

4.45

4.30

United Bank Ltd

71.05

57.90

57.00

59.60

60.40

58.70

WorldCall Tele

60.17

2.65

2.55

2.80

2.90

2.70

2.40

Fubon Life invited to bid on AIG's Taiwan unit 8

Monday, November 23, 2010

Wells Fargo to pay Citi $100mn over Wachovia

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

Ambac says banks must pay for RMBS breaches WILMINGTON: Ambac Assurance Corp, whose parent company filed for bankruptcy earlier this month, said on Thursday that banks that assembled a dozen poor performing mortgage bonds that it insured must pay for some of those losses. Ambac said it was reviewing loans in residential mortgagebacked securities (RMBS) issued by the Countrywide unit of Bank of America and affiliates of Citigroup, among others. The company may be riding the growing momentum of mortgage "putbacks" -- forcing banks to buy back mortgage securities -- driven by Pacific Investment Management Co and other big investors. Those investors have forged alliances to fight banks they claim shoveled faulty loans into mortgage bonds. US mortgage giants Fannie Mae and Freddie Mac have said in securities filings they have been able to cut their loss-

es by billions of dollars with putbacks. JPMorgan Chase has estimated the cost to the banking industry from putbacks could be as high as $90 billion. Ambac Assurance has stopped writing new business and is undergoing a rehabilitation plan after it insured tens of billions of dollars of mortgagebacked securities that are going bad due to the US housing crash. The insurer said that after reviewing loan origination files it is seeking to have the banks buy back certain loans that are part of the bonds. Ambac Assurance "believes, based on its review, that the sponsors of these securities are obligated to pay sums, which may in certain cases be material," the insurer said a securities filing. Jerome Dubrowski of Bank of America said, "In cases where we determine a valid defect, Bank of America will act responsibly. In cases where we do not determine a valid

defect we will vigorously contest the claim and will defend our interests and the interests of our shareholders." Citigroup declined to comment. Ambac Assurance is a unit of Ambac Financial Group Inc, which has filed for bankruptcy. The parent company strayed from insuring municipal bonds and began guaranteeing RMBS and other more exotic instruments. In March, Wisconsin Insurance Commissioner Sean Dilweg, who regulates Ambac Assurance, seized $64 billion of its worst policies, including the RMBS business, and placed them in a segregated account. Ambac Assurance also said it had sued in connection with 17 RMBS for breaches of representations and warranties by the banks that assembled the securities. Most of the RMBS involved in litigation were structured by Countrywide. Reuters

Manulife targets net earnings of C$4bn in 2015 l Manulife to hold investors day on Friday l Says to improve ROE to 13 per cent by 2015

TORONTO: Canada's largest insurance company, Manulife Financial Corp, said on Friday that it is targeting for 2015 a net income of C$4 billion ($3.9 billion) and shareholders' return on equity of 13 percent. The company's net earnings for 2009, released in May, were C$1.4 billion, and return

on shareholders' equity was 5.2 percent. Manulife hosts its annual investment day in Toronto on Friday. It said in a release that senior management would expand on the company's strategic direction and objectives at the event. The company said it plans to reduce its earnings volatility

through expanded equity and interest rate hedging programs. Earlier this month, Manulife reported a fivefold increase in its third-quarter loss due to C$3 billion in charges and a writedown, but its shares rose nearly 10 percent as the loss was not as big as the market had expected. -Reuters

NEW YORK: Wells Fargo & Co will pay Citigroup Inc $100 million to settle multiple lawsuits over the contentious 2008 purchase of Wachovia Corp, closing another chapter in the receding financial crisis. The banks said the settlement will resolve all claims related to the dispute. Citigroup had originally sought as much as $60 billion of damages from Wells Fargo for derailing its September 2008 agreement to buy large portions of Wachovia and quadruple its US branch presence. "This could have dragged on forever, and sometimes I think you're better just settling and moving on," said Anton Schutz, president of Mendon Capital Advisors in Rochester, New York, which owns shares of both banks. "If Citigroup had gotten Wachovia, the financial returns would have been significant," said Schutz. "But it might have made it harder for Citi to do some of the things they're doing now, like getting leaner." He said the $100 million amount seemed low relative to the stakes in the dispute. Citigroup had initially agreed to buy much of Charlotte, North Carolina-based Wachovia for $2.16 billion. Wachovia was struggling with soaring losses on mortgage loans, and the agreement with New York-based Citigroup called for Federal Deposit Insurance Corp to share in those losses. Wells Fargo, based in San Francisco, then bid a much larger sum for all of Wachovia, in a takeover that did not require FDIC support. The $12.5 billion merger closed at the end of 2008, roughly doubling Wells Fargo's size and giving it the largest US retail branch banking network. Citigroup and Wells Fargo are the nation's third- and fourth-largest banks by assets. BAILOUTS The failed Citigroup bid was one of the last straws for that bank, which was forced to accept three US government bailouts in late 2008 and early 2009 and briefly saw its share price fall below $1. By buying Wachovia, Citigroup would have been able to expand its relatively small US retail branch network to compete with larger retail banking rivals such as Bank of America Corp and JPMorgan Chase & Co . Chief Executive Vikram Pandit has since slimmed Citigroup down, shedding assets not needed for its main banking operations, and refocusing on wealthy, urban customers worldwide. Still about 11 percent owned by the government, Citigroup has abandoned ambitions of competing for a broad share of the USconsumer banking market. In a presentation this week, Americas consumer bank head Manuel Medina-Mora told investors that emerging markets would drive more than half of Citigroup's revenue growth over the next three years. In July 2009, a federal judge had rejected Citigroup's argument that Wachovia lacked the authority to accept Wells Fargo's offer, but Citigroup continued to seek damages. Citigroup shares were down 0.7 percent at $4.27 on Friday afternoon, while Wells Fargo was down 0.3 percent at $27.43. -Reuters

Industry consultants cite missed opportunity

Tech-shy insurers may miss the boats l Lack of effective targeting at "Gen Y" hurts business l Auto insurers seen ahead of the game

NEW YORK: Most insurers are letting consumer technology like smartphones and social media networks get ahead of them, creating a challenge to attract a new generation of customers who are not interested in doing business with agents the way their parents did. But it has also created an opportunity for companies like Allstate and State Farm which have embraced interactive technologies as a way to extend their brand's reach to children of the 1980s and 1990s. "You're not going to get any more mortality (business) with the things you're doing now" among the younger generation, said Douglas French, managing principal of Ernst & Young's insurance advisory practice, told reporters recently. While the insurance industry is known for many things, an orientation toward the young and/or hip customer is not one of them. In some ways this contrasts strongly with banks, which are offering check deposit via cell phone and pushing the Internet to replace branches for much of their business. Catchy advertising gimmicks like Aflac's spirited duck or Geico's cavemen notwithstanding, underwriters usually aim their pitches at a middle-aged customer seeking an aura of confident authority about matters like health and property. While that has continued to work among a segment of the market, branding experts say there is a missed opportunity. "It's a buggy whip mentality. Everything is moving more and more to high-tech electronic online interface and particularly with this generation," said Robert Passikoff, president of brand loyalty and customer metrics researcher Brand Keys. "They're still looking at this as a commodity ... if we can get the price down low enough, people will come to us and I don't need a lot of friends on Twitter and Facebook." There are some companies

in the industry that have been more aggressive with their push into new media, though mostly in automotive insurance. Industry executives say auto insurance lends itself to new media because the transactions are in some ways simpler than other insurance lines. Allstate has a suite of mobile applications for smartphones that offer services like home inventory lists and roadside assistance requests. "A very significant number, up to a majority, of wireless users will have these devices with them and they expect to be able to interact with companies through these devices where they are," said Bob Wasserman, vice president of e-business for Allstate. "You start to think about what this device can do and you build other capabilities." State Farm is just as active, with prominent links off its home page to Twitter, Facebook and Flickr feeds and a suite of mobile applications for customers, though they are still just a supplement to the company's traditional network of agents in storefronts across the country. Berkshire Hathaway's Geico is also aggressive in mobile, offers an application that lets people obtain rate quotes by taking a picture of their drivers license among its lineup of phone applications. No matter what channel they are using, the auto insurers seem to have picked up on an idea that other insurers have missed: younger customers don't want to go to an agent's office and don't want to be sold products where they already know they can get a better price elsewhere. Brand Keys' Passikoff said that shift in thinking could take a decade for insurers to really make, but some say that may not be sufficiently aggressive. "I don't see the industry moving fast enough," said Bill Chrnelich, a partner in PricewaterhouseCoopers' insurance practice, in a recent interview. "This industry isn't focused enough on that change in their sales and distribution." -Reuters

Insurance stocks positive last week Staff Reporter KARACHI: Insurance stocks showed some positive performance last week at the Karachi Stock Exchange with around 4.4 million shares traded together in life and non-life insurance stocks in a 2-day week owing to Eid holidays. Adamjee Insurance was the volume leader with 2.26 million shares followed by Pak

Reinsurance with 1.61 million shares. Top gainers of the week include Adamjee Insurance which increased by Rs3.06 to close at Rs81.91 and EFU Life Assurance which was up by Rs2.52 to close at Rs78.02 while United Insurance was down by Rs0.79 to close at Rs5.20 and New Jubilee Insurance fell by Rs0.49 to close at Rs57.50 to be the major losers of the week.

Four groups to examine AIGâ&#x20AC;&#x2122;s Taiwan life unit TAIPEI: Four Taiwan groups have been invited by AIG to examine the US firm's Nan Shan Life unit from Monday, kicking off the sale of AIG's Taiwan unit again, a local newspaper reported on Saturday. Potential buyers Cathay Financial Holding , Fubon Financial Holding , Chinatrust Financial Holding and a consortium led by a Taiwan businessman would do due diligence on Nan Shan before they can reach a deal, the Commercial Times said, citing unidentified sources. Officials from these financial companies were not available for comment, while the paper said last week that AIG aims to sell Nan Shan in two months for around $2 billion , as it continues to repay its bailout debt to the US government. The bailed-out insurer has repeatedly said it is evaluating its options on Nan Shan. Analysts said it is more likely that Nan Shan will be sold rather the other choices of a share market listing or AIG keeping hold of the unit. Taiwan regulators in August blocked a $2.15 billion bid for Nan Shan from battery maker China Strategic and Primus Financial, saying the two did not have experience in the insurance industry and lacked the ability to raise capital for future operations. Companies that have since expressed interest in buying Nan Shan since include Chinatrust Financial, Fubon Financial and Primus. Nan Shan is Taiwan's No.3 life insurer by market share and its policyholders make up almost a sixth of the island's population.Reuters

World Bank unit expands insurance reach NEW YORK: The World Bank's political risk insurance arm said on Monday it has expanded the pool of investment it can cover under new changes approved by its governing council. The Multilateral Investment Guarantee Agency, or MIGA, said the revisions in its convention will allow it to cover more investments in developing countries, which should help lift private investment in some of the world's poorest regions. Foreign investors use political risk insurance to cover themselves against loss of assets through political unrest, violence, expropriation, nationalization and other government actions. MIGA chief Izumi Kobayashi said MIGA would be able to insure project debt even if the agency is not insuring a portion of the equity investment. "This is crucial for lenders," said Kobayashi, MIGA's vice president. "In the past, because we were unable to cover standalone debt, we had to turn away business when lenders were concerned about project risk, but the equity investor was not eligible or interested in purchasing coverage," she said. "This has meant that there have been cases where prospective lenders to projects have chosen not to proceed, resulting in increased transaction and borrowing costs for the sponsors, which has negatively affected project performance and development impact," Kobayashi added. In other changes, MIGA will now be able to offer political risk insurance to new foreign investors in cases of a "simple acquisition" of existing investments. -Reuters

Sebastian Vettel recalls the key moments as he became F1’s youngest ever world champion at 23 years, 155 days

Monday, November 22, 2010

No place for newness in modern game: Federer London: At 29, Roger Federer will be the elder statesman at the ATP World Tour finals which start in London's Docklands on Sunday but the Swiss is not about to start fretting about the passing years. In fact, the 16-times grand slam champion is adamant the demands of the muscular, super athletic, power-based game that now dominates tennis have made the top echelons of the game a no-go zone for the new kids on the block. A keen observer of the sport's trends, Federer said that there were no teenagers inside the world's top 100 and suggested you would not find a player younger than 22 with a double digit ranking. Just like his artistic game which often flies in the face of the baseline warfare played by so many of his rivals, Federer's observation was spot on, as a trawl through the ATP's latest ranking list showed. You have to scroll down to 114th ranked Bulgarian Grigor Dimitrov -- a player often compared to Federer -- before you find a teenager cutting it at the sharp end of men's tennis. It is a far cry from the day when Federer reached the top 100 when he was 18, current world number one Rafael Nadal did it when he was 17 and Andy Roddick charged into the world's top 20 before his teenage years were over.-Online

De Villiers’ record puts SAfrica in big charge De Villiers sets record with 278 not out SAfrica declare on 584-9 ABU DHABI: AB de Villiers posted South Africa's highest individual score to give them firm control of the second test on the second day against Pakistan at the Sheikh Zayed Stadium on Sunday. De Villiers scored 278 not

for three on the first morning but immediately looked settled and occupied the crease for more than 11 hours, taking 418 deliveries and hitting 23 fours and six sixes. South Africa had begun the second day on 311 for five and

COLOMBO: The absence of strike bowler Lasith Malinga has prompted Sri Lanka selectors to once again experiment with their bowling line-up for the second Test against West Indies. Fast bowlers Dammika Prasad and Thilan Thushara were dropped after both failed to take a wicket in the drawn first Test, while seamer Nuwan Kulasekara was recalled after a year-long absence. Right-arm fast bowler Shaminda Eranga, 24, could make his Test debut after being included in the 16-member squad. Kulasekara played the last of his 11 Tests against India in December 2009. Chairman of selectors Aravinda de Silva said Sri Lanka are trying to find the right combination of fast bowlers to share the new ball in Test matches as their main spearhead Malinga was unavailable. The second Test begins on Tuesday. Sri Lanka squad: Kumar Sangakkara (captain), Mahela Jayawardene (vice-captain), Tillakaratne Dilshan, Tharanga Paranavitana, Thilan Samaraweera, Angelo Mathews, Prasanna Jayawardene (wicketkeeper), Suraj Randiv, Ajantha Mendis, Nuwan Kulasekara, Dilhara Fernando, Suranga Lakmal, Rangana Herath, Thilina Kandamby, Kaushal Silva, Shaminda Eranga.-Online

Aamir Atlas wins silver after losing to Iskander

Pak, SKorea join India in hockey semis GUANGZHOU: Defending champions South Korea and Pakistan cruised into the semifinals of the Asian Games men's field hockey with emphatic wins on Sunday. Pakistan bounced back after the 3-2 loss to India a day earlier to outclass Bangladesh 61, while the Koreans whipped Singapore 12-1 in their last league matches. India, who overcame a fighting Japan 3-2, topped group B with four straight wins and will play either Malaysia and China in Tuesday's second semi-final. Malaysia need a draw against the hosts later on Sunday to qualify as the second team from group A behind South Korea. Pakistan face the Koreans in the first semi-final, also scheduled for Tuesday. Veterans Shakeel Abbasi and Sohail Abbas fashioned Pakistan's win over Bangladesh with two goals apiece, while Muhammad Imran also pumped in two penalty corners. Abbasi put Pakistan ahead in the 13th mninute with a brilliant reverse flick and Abbas increased the margin two minutes later with a stinging penalty corner. Abbasi scored the third goal in the 27th with a superb run down the middle when he dribbled past three defenders and beat the advancing goalkeeper. Abbas, who failed to score off the lone penalty corner his side earned against India, struck his second set-piece goal as Pakistan took a 4-0 lead by half-time. Muhammad Imran converted two penalty corners in the second half, before Bangladesh earned a consolation goal through Taposh Barmon seven minutes before the final whistle. "We took this match as if we were playing the final, because we must continue to win if we are to reach and win the final," said the 35-year-old Abbas.Agencies

SL try out bowlers in Malinga's absence

ABU DHABI: South African batsman AB de Villiers (L) celebrates after his highest individual score on the second day of the last Test match against Pakistan.-Reuters

out to pass Graeme Smith's landmark of 277 against England in Birmingham in 2003, with captain Smith declaring their first innings closed on 584 for nine shortly afterwards. Taufeeq Umar (16) and Azhar Ali (34) then took Pakistan to 59 for one before bad light stopped play and stumps were drawn with seven overs remaining in the day. Mohammad Hafeez was the batsman out, playing across his front pad and being trapped lbw for two in the first over of the innings. De Villiers came to the wicket with the score a parlous 33

De Villiers showed excellent management of the lower order as he shared stands of 73 with Mark Boucher (45), 42 with Johan Botha (12), 59 with Steyn (27) and 35 with Paul Harris (19). The 26-year-old De Villiers reached the record in a thrilling final hour of the innings, when he and last man Morne Morkel (35 not out) added a record 107 runs in 13.4 overs. South Africa's previous best 10th-wicket stand was made in 1929 when Harold "Tuppy" Owen-Smith and Alexander "Sandy" Bell added 103 against England in Leeds.Reuters

BEIJING: Men's top seed Azlan Iskander, the silver medallist in Doha four years ago, took just 39 minutes to see off promising Pakistan squash player Aamir Atlas Khan 11-6, 11-7, 11-6 in the Asian Games final on Sunday. Five-time World Open champion Nicol David clinched a third Asian Games title with compatriot Iskander completing a Malaysian double with the men's gold. Top seed David carved out a 118, 8-11, 11-6, 11-7 win over Hong Kong's Annie Au. The victory follows the Malaysian star's Asiad gold triumphs in Kuala Lumpur in 1998 and Doha four years ago. David, who has been world number one for a record 56 consecutive months, arrived in Guangzhou having won the Commonwealth Games title in New Delhi in October. Asian champion Iskander made sure the Games title stayed in Malaysian hands for a third successive Asiad after compatriot Ong Beng Hee had won in 2002 and 2006.-Agencies

KARACHI: Gold medal winning Pakistani women cricket team players coming out of Karachi airport .-Online

Pakistan would have beaten India too: Sana

Gold-winning nat’l women cricket team returns KARACHI: Pakistan women cricket team has reached home after winning gold medal in the on-going Asian games. The team has been received overwhelmingly by the spectators and their families at the Quaide-Azam International airport, Karachi. Many spectators were also present to welcome the team, besides their families. Pakistan women cricket team has been in the field since 1997 and this is for the first time that the team has won a major title. Before becoming Asian champions the major achievement of the team was qualifying for the ICC World Cup, reported a private TV channel. The national team won all the four matches that it played in the Asian games against China, Thailand, Japan and then

Bangladesh in the final. The team won the first gold medal for the country in the Asian games but the PCB women's wing has not yet announced any function in honour of the team neither did it announce any reward for the members of the victorious team. Four players and the team management of the gold medal winning Pakistan women's cricket was warmly welcomed on reaching Lahore on Sunday. They were showered with roses by Bushra Aizaz, chairperson PCB Women's Wing, their families and hundreds of their fans. When skipper Sana Mir along with Nida Rashid, Bisma Maroof and Marina Iqbal arrived at the Allama Iqbal International Airport the atmos-

phere was echoed with slogans of Pakistan Zindabad. Reaching her native city, Sana said that the preparation of her tem was outstanding and if there were India in the contest they also have defeated them. Bushra Aizaz, chairperson PCB Women's Wing was very happy at the moment but she criticized the Government for not rewarding the team on its great achievement. Former chairperson Shirin Javed, who was also there to receive the victorious team, said that despite her resignation from the post she got the reward in the team's victory. Among those who reached Multan were Asmavia Iqbal and Sanee'a Khan along with Sana Gulzar who belongs to Khanewal.-Online

Indian batsmen take control of deciding test NAGPUR: Half-centuries from each of India's top-order batsmen gave the hosts the control after their bowlers had dismissed New Zealand for 193 on the second day of the third and final test on Sunday. At the close, India had reached 292 for two for a lead of 99 runs, with the experienced duo of Rahul Dravid (69) and Sachin Tendulkar (57) at the crease. Dravid, with his 60th fifty in tests, and Tendulkar, who needed 43 more for his 50th test hundred, have already added

100 runs for the unbroken third-wicket partnership. Virender Sehwag (74) and Gautam Gambhir (78) combined for a quickfire opening stand of 113 after paceman Ishant Sharma and spinner Pragyan Ojha picked up the final three New Zealand wickets in the morning. Sehwag flayed the New Zealand bowlers and brought up a run-a-ball half-century -his 26th in tests -- with 12 boundaries and a six before falling to New Zealand captain Daniel Vettori caught and

bowled. The flamboyant right-hander played some delicate late cuts and audacious upper cuts and pulls as the visitors looked to attack him with short-pitched deliveries. Gambhir celebrated his appointment as India captain for the first two one-dayers against New Zealand with a confident knock, cut short when he poked at a Tim Southee delivery outside the off-stump to give Ross Taylor catching practice at slips.Reuters

Peng on treble path, Mirza loses marathon GUANGZHOU: China's Peng Shuai shattered 40-year-old Kimiko Date Krumm's dream of a second Asian Games title on Sunday to keep her triple gold bid on course. Peng clinched a 7-6 (8/6), 36, 6-2 win over the veteran Japanese, who won her first singles gold at the Hiroshima Asiad in 1994, and now faces Uzbekistan's Akgul Amanmuradova, who put out Indian golden girl Sania Mirza. Peng, 16 years Date Krumm's junior, made the most of her opponent's inconsistency where an impressive 59 winners were cancelled out by 73 unforced errors and a morale-sapping six double faults. World number 72 Peng has already helped China to team gold in Guangzhou and is also in the women's double semifinals with Yan Zi. "We kept running all the

time. We were exhauasted. My arms seemed to fall apart but I never gave up," said Peng, who also praised her veteran opponent. "She is a genius." Date Krumm admitted the season had caught up with her but that she had been determined to take part in the Games. "Many professional players would not play in this kind of tournament. I came here mainly with the purpose of encouraging young Japanese players to improve their level," she said, before rulGUANGZHOU: Sania Mirza of India returns to Akgui Amanmuradova of ing herself out of the Uzbekistan during their women's singles semi-final tennis match at the Aoti tennis 2104 edition. centre on the ninth day of the 16th Asian Games.-Reuters "I will be 44 in

four years' time. I'm not a robot." Mirza needed six set points to wrap up the opener after more than an hour on court against the big-hitting Amanmuradova who she had defeated in all three of their previous meetings. But the Indian's game unravelled in the second set and the world 69 levelled the tie. As the clock ticked towards the three-hour mark, Amanmuradova's greater stamina paid dividends as she took victory on the first of three match points for a 6-7 (7/9), 6-3, 6-4

win. Defending men's champion Danai Udomchoke was knocked out in the quarterfinals, losing to Japan's Tatsuma Ito 6-4, 6-1. "I couldn't put a ball in court today," said the Thai. "Nothing worked." Ito next faces Indian number Somdev Devverman who defeated China's Zhang Ze 6-4, 6-4. Top seed Denis Istomin of Uzbekistan reached the semifinals after a 6-2, 4-6, 7-5 win over Karan Rastogi with the vanquished Indian praising his opponent's sportsmanship. Istomin, the world number 40, would have won if he had accepted the chair umpire's judgement that a Rastogi forehand was out on match point. However, the Uzbek called the ball good before eventually going on to win. "Not many people on the

Analysis & Feature

Monday, November 23, 2010

POSSIBLE OUTCOMES OF NATOâ&#x20AC;&#x2122;S AFGHAN EXIT PLAN N

ATO has agreed to end its combat mission in Afghanistan and hand responsibility to Afghan forces by the end of 2014, while also promising it will not abandon Afghanistan in its fight against the Taliban. Following are some scenarios that could result from NATO's bid to extract the 150,000 foreign troops from a nine-year-old conflict widely seen as going badly for the United States and its allies: WORST CASE SCENARIO If the pressure from nonUS members of NATO to pull out grows stronger and there is a precipitous withdrawal, the worst-case scenario would be a return to civil war, with Afghanistan's poorly trained police and army largely left to fend for themselves against a strong Taliban-led insurgency. US troops might remain -- a senior US official has said US forces could remain in a combat role after the end of 2014, unlike the rest of the NATO force -- but they would be limited in number. US President Barack Obama has said he will begin withdrawing some of the 100,000 US troops in Afghanistan by July 2011, a promise his critics say has already emboldened the Taliban. While NATO states have committed to boosting their training effort to bring the

Afghan security forces to a target strength of 300,000 by the end of 2011, the plan has been hampered by high desertion rates and a shortage of qualified recruits. The head of the NATO training mission estimated in late September that attrition in the Afghan army and police, including from desertion and casualties, meant 133,000 more recruits were needed to increase the total number of personnel by 50,000 and hit the target. The fact that Karzai is scheduled to end his second and final term in 2014 could increase the risk of instability. If Afghan forces were unable to fill a security vacuum caused by the departure of foreign troops, factional fighting could result, returning the country to the instability seen before the US-led intervention in 2001. This could create conditions for the return of al Qaeda fighters to Afghanistan. Instability could fuel Islamist radicalism in the country and further unsettle nuclear-armed Pakistan and Central Asian states. This would represent a serious strategic defeat for the United States and its allies, damage the prestige of NATO and give a major motivational boost to radical Islamists, increasing the risks of militant attacks on

Western targets, particularly in Europe, security analysts say. BETTER CASE OUTCOME NATO has long since stopped talking of defeating the Taliban. A good scenario from NATO's point of view would involve a gradual, managed exit while building up Afghan forces and improving standards of governance to create the conditions for a negotiated solution to the conflict on NATO's terms. The alliance backs efforts by President Hamid Karzai to encourage reintegration of insurgent leaders and fighters -- provided they cut ties with al Qaeda, lay down their arms and respect the Afghan constitution, including its provisions for the protection of human rights, particularly those of women. NATO has stepped up attacks on the insurgency and targeted leaders since Obama ordered a big increase in troop levels last year in an effort to push Taliban leaders into negotiations. Preliminary contacts with the insurgents have yet to bear fruit, with the Taliban insisting that foreign troops must first leave the country. Some doubt the insurgents have any interest in talking seriously to Karzai's government given their belief they are in the process of winning a long war of attrition.

Encouraging the insurgents to talk could require a softening of the government position on the constitution and sacrificing gains made in areas like women's rights and education that have been hailed as successes of the international intervention. While unpalatable to Western governments, analysts say they would accept

this as a price for leaving a relatively stable Afghanistan behind them. BEST-CASE SCENARIO The United States and its NATO allies have acknowledged that an outright defeat of the Taliban-led insurgency is not likely. The rigidly religious, tribal-based movement is deeply ingrained in the fab-

ric of Afghan society and is not going to uprooted. Perhaps the best outcome for the United States and its allies therefore would be a negotiated solution in which the Taliban ends its insurgency and agrees to cut ties with al Qaeda. The capture or handover of Osama bin Laden, mastermind of the

Sept. 11, 2001 attacks that prompted the US-led invasion, would allow Washington to declare the original mission launched by former US President George W. Bush a success, although nine years after the war began, it remains highly unlikely. -Reuters

US seeks trust, not caps, in Cancun climate talks T he Obama administration, weakened by political setbacks, will likely limit its role in global climate talks this month to building trust with other big polluters rather than blazing an ambitious path on binding carbon emissions cuts. The US Senate failed to pass a climate bill this summer and Republicans won control of the House of Representatives in November elections, putting out of reach any big moves by President Barack Obama to tackle global warming until at least 2013. That means US climate negotiators at the talks, being held from Nov. 29 to Dec. 10 in Cancun, Mexico, lack the bargaining chips to demand that rapidly developing countries like China and India agree to binding emissions cuts. The United States could

concentrate on trying to loosen its deadlock with China on how to share the economic burden of cutting carbon emissions by teaming up with growing US ally India to put pressure on Beijing. Obama's climate envoy Todd Stern said Thursday that the talks should tackle simple goals rather than the tougher task of hashing out a deadline for new global pact with binding emissions cuts. Some countries have wanted the talks to set a deadline because the Kyoto Protocol, which requires most developed countries to cut emissions, runs out in 2012. Instead, the United States, which never joined the Kyoto pact, will reiterate its emissions reduction pledge made last year in Copenhagen. Obama pledged then that the United

States, which over history has emitted more greenhouse gases than any other country, would cut the pollution about 17 percent from 2005 levels by 2020. And Obama will not withdraw that goal. "We can see a way forward, but only based on what our leaders agreed to last year in the Copenhagen Accord," Stern said. "We're certainly not going to go back on that." Christiana Figueres, the head of the U.N. Climate Change Secretariat, said last week that "the world certainly expects the United States to live up to that pledge." US negotiators will also seek to lay down the foundations for greater cooperation in fighting emissions on a global scale, such as aid to developing countries and transparency on emissions cuts.

But the pressure is on. If progress is not made in those areas this year in Cancun and at next year's talks in South Africa, many will question whether the U.N. process is the best arena to fight climate change particularly as scientists say 2010 will be warmest year on record. And if Obama loses the election in 2012, there's no guarantee the winner would make action on climate change a priority. MIND SHIFT Working on smaller items like greater transparency on emissions cuts is part of a mind shift that U.N. negotiators may be undergoing. Since talks began 15 years ago the primary focus has been establishing a binding emissions cuts. But with China and the United States -- the world's top two greenhouse gas

emitters -- not ready to agree to that, US negotiators will look to move forward with other ways to strengthen international efforts, while keeping a binding pact as the ultimate goal. "Creating the other connective tissue within a multilateral framework puts us in a better position over time to get to the binding outcomes," said Elliot Diringer of the Pew Center on Global Climate Change. Those efforts will boil down to two areas. First, US negotiators will try to help build a support system for developing countries to cut emissions and to deal with the worst effects of climate change, such as droughts, floods and heat waves. Those talks will include trying to build the architecture for an international carbon fund, such as where the

fund would be based and who will sit on its board. Long-term financing, forming a strategy for technology transfers, and expanding forests and protecting them from development, will also be part of that. Second, the US negotiators will work with other nations on building a system to verify emissions cuts so all can be confident that promises to do so are kept. But even the smaller steps, such as financing, are no certain deal. For the last two years Washington has dangled the promise of financial help for the poorest countries in climate diplomacy. "Foreign aid, though, is at the top of the hit list for spending hawks in the new Congress," Michael Levi, a senior fellow on energy and environment at the Council

on Foreign Relations, wrote in a blog this week. In addition, talks on sharing green technologies could also get bogged down over intellectual property rights issues. Still, backers of climate action hope that some progress can be made with new tactics. The United States could begin to make progress with China, by working with India. Obama recently traveled to India to strengthen bilateral ties, so working with it could be a natural fit. India recently made a proposal to help countries verify emissions cuts, and the plan is close to what Washington wants. "If the US and India can come to some common ground on that, I think it will be hard for China to not come on board," Diringer said. -Reuters

Ireland's corporate tax in dispute in EU rescue I

reland's ultra-low corporation tax rate, a magnet for foreign investment over the last decade, is at the centre of a tug-of-war between Dublin and its European partners over an expected financial rescue. The government is simultaneously seeking tens of billions of euros in EU and IMF assistance to cope with the huge liabilities of its shattered, state-guaranteed banks, and refusing to contemplate any increase in the iconic 12.5 percent tax rate. Finance Minister Brian Lenihan said on Thursday he had made clear to all international partners that the tax rate was "an absolute red line", and Deputy Prime Minister Mary Coughlan said it was "non-negotiable". Yet the finance ministers of France and Austria and a senior German lawmaker have all said that the business tax, long seen by higher-tax European countries as unfair competition, should be addressed in

the negotiations. It may be hard to explain to European taxpayers, facing spending cuts and tax increases at home, why they should lend money to the wealthier-than-average Irish if Dublin is unwilling to raise more revenue itself from business. Ireland has strong economic reasons for wanting to keep a low rate that attracted US multinationals such as Google, Microsoft, eBay and Intel, which have created tens of thousands of jobs. "Any simple economics textbook will tell you that a small, open economy built heavily on foreign capital should set a low corporate tax rate," says Philip Lane, professor of international macroeconomics at Trinity College, Dublin. There are also political arguments. The corporate tax rate has become a symbol of sovereignty in a nation that had to fight hard for independence from Britain a century ago. The Irish were promised

before they ratified the EU's Lisbon treaty at the second attempt in a referendum last year that they would retain full freedom to set their own taxes. GROWTH OR BUST Ireland's transformation from a poor, agrarian country until the 1980s into one of the most prosperous and dynamic economies in Europe was built on two pillars -- generous European Union subsidies and low corporate tax. But the Irish now have 128 percent of the EU average gross domestic product per capita. Only a few years after Dublin was weaned off EU cohesion and structural funds, it suddenly needs emergency aid to shore up banks ruined by a real estate bubble. Corporation tax yielded 3.9 billion euros ($5.45 billion) in 2009 and is expected to bring in at least 3.1 billion euros this year, about 10 percent of government revenue. Each extra percentage point of corporate

tax would raise roughly 300 million euros. Under its four-year austerity programme, the government needs to cut the budget deficit by at least 6 billion euros next year and achieve 15 billion euros in savings by 2014. That may mean further cuts to public sector pay and pensions, new taxes on property and water, lower student grants and higher university fees. Yet no mainstream political party is calling for higher taxes on business. The consensus is partly because the 12.5 percent rate -- the second lowest in the EU -- was introduced by a centre-left Labour party finance minister, Ruairi Quinn, in 1997. One possible compromise might be to impose a oneoff levy or a temporary surcharge on corporations. But economists say the low corporate rate creates jobs and spending in Ireland which generate higher income tax and value added tax revenue as

well. "Everyone agrees that you have to have economic growth in Ireland or nothing else will work," Lane said. He questions the premise that Ireland is drawing investment away from other European countries. Many of the global firms with operations in Ireland are in fact selling software services such as online advertising back to the United States, he says. Furthermore, some European multinationals take advantage of Ireland's system to reduce their tax bill at home, enabling them to keep less profitable production in other EU countries. Only Bulgaria and Cyprus, which charge 10 percent, have lower corporate tax rates in the European Union. Latvia takes 15 percent and most "emerging Europe" economies, which compete with Ireland for foreign investment, have rates around 19-20 percent. However Lane says OECD figures show the effec-

tive tax take on business in Ireland is closer to the European average because there are fewer exemptions and allowances than, say, in Germany. A senior executive at US drug maker Pfizer, which employs more than 5,000 people in Ireland with a capital investment of over $7 billion, said he could not imagine that the EU would force Dublin to make itself less competitive. "I find it difficult to believe that Europe would make us even more uncompetitive by forcing us to do anti-competitive things and damage the economy by saying we have to remove one of our competitive tools," said Paul Duffy, vice-president of manufacturing for Pfizer in Singapore and Ireland. But not everyone believes that if Ireland were to raise its corporate tax by a few points to Baltic levels, multinationals would rush to abandon their Irish bridgehead in the EU's single market with its flexible,

English-speaking workforce. "If we went to 15 percent, or even 17.5 percent, we'd still be lower than most," said Alan McQuaid, chief economist at Bloxham Stockbrokers in Dublin, who argues that a "minor tweak" to corporate tax would not do much damage and would be seen by ordinary Irish people as an act of social justice. "If we have a weak hand (in negotiations with the EU), that might be the thing to trade off." French Economy Minister Christine Lagarde also argues that Dublin has some room to raise corporate tax without killing the goose that lays the golden eggs. "We will have to see how these rates can be changed without weighing down the Irish economy and driving away investors, because we would be shooting ourselves in the foot and Ireland would be guaranteed to have to come back to the (loan) window," she said. -Reuters

International & Continuation

Monday, November 22, 2010

Saudi king to seek medical treatment in US

JERUSALEM: Israelis hold signs during a protest outside the office of Israel's Prime Minister .-Reuters

Thousands rally for disqualified Taiwan taekwondo fighter TAIPEI: Thousands took to Taipei's streets on Sunday in support of a disqualified taekwondo fighter in a row that has fired public emotions and caught the interest of Taiwan's politicians. Some held signs condemning the Asian Taekwondo Union (ATU) while others clad in taekwondo kit carried placards supporting Yang Shu-chun, who was thrown out off the Asian Games after she was found wearing illegal sensors on her

ATU website was attacked by hackers after it carried a statement which condemned the athlete for a "shocking act of deception" even though an official inquiry was pending. Taiwan's government demanded an apology for the statement and the disqualification, claiming it was unjust. The ATU later removed the article from the website and its officials said they "feel sorry and apologise," according to a report in Taipei's Apple Daily.

"But that's not enough. They have to apologise formally," Taiwan's President Ma Yingjeou said. Yang's bout was stopped and she was disqualified while leading 9-0 in the first round as her socks, complete with detachable electronic sensors, were ruled illegal. Fighters are required to wear socks with built-in sensors which help the electronic system score points when they hit other sensors on the opponent's body gear.-APP

Lot of Afghan poll winners disqualified

China mine flood traps 28 in southwest Xinhua

list of new members of the wolesi jirga, or lower house of parliament. The IEC is itself being investigated by the attorney general's office over election fraud. The credibility of the eventual result will weigh heavily when US President Barack Obama reviews his Afghanistan war strategy next month amid rising violence and sagging public support. Civilian and military casualties this year have been the highest since the overthrow of the Taliban in 2001, despite the presence of around 150,000 foreign troops, and violence has spread to previously peaceful northern and western provinces.-Reuters

BEIJING: An underground flood on Sunday trapped 28 miners in southwestern China, the Xinhua news agency said, in the latest accident involving the country's mines, considered the deadliest in the world. Thirteen of 41 miners were able to escape when an underground pit at Bastian Coal Mine in Weidman county filled up with water, a provincial work safety bureau told Xinhua. A spokesman for the bureau said rescue efforts were underway, but the location and condition of the workers were not known. China's mines are considered the deadliest in the world, due to lax safety standards and a rush to feed demand from a robust economy. More than 2,600 people died in coal mine accidents in China in 2009 alone. -Reuters

KABUL: Afghanistan's election watchdog has disqualified for fraud "tens" of Afghan candidates who had won a place in the country's 249-seat parliament, a source working on the election told Reuters on Sunday. The latest blow to a vote already plagued by allegations of widespread corruption comes the day after NATO wrapped up a major summit in Lisbon where Afghanistan topped the agenda, particularly an exit plan for foreign troops there. "Votes for tens of successful candidates are going to be disqualified over fraud," said the source, who asked for anonymity because he was not authorised to reveal the eliminations.

socks. The march was organised by the ruling Kuomintang party on behalf of Taipei Mayor Hau Lung-pin who is seeking another four-year term on November 27. Hundreds of thousands have joined Facebook campaigns in support of the disbarred athlete in a society that had taken the martial art to its heart as a means of breaking its international isolation. The spat escalated when the

The candidates will not be able to appeal against the decision, he said. Final results have still not been released more than two months after the September 18 parliamentary poll. Complaints about fraud and vote rigging began before Afghans even went to the polls, although limited violence on the day meant it was initially hailed by Afghan officials as a success. The candidates have been eliminated by the U.N.backed Electoral Complaints Commission (ECC). The ECC will pass the list of rejected candidates to the Independent Election Commission (IEC), which is tasked with announcing the

JEDDAH: Saudi Arabia's elderly King Abdullah will leave for the United States on Monday for medical checks for a back ailment, and Crown Prince Sultan is returning from holiday abroad, state media said on Sunday. Western diplomats in Riyadh said the prince's return indicate that kingdom, which has no political parties or elected parliament, is trying to prevent a power vacuum and reassure Washington and other allies. A day before his departure, the king reappointed several officials close to him, including Saudi Arabia's relatively moderate top Islamic scholar and the ambassador to Washington. Prominent journalist Jamal Khashoggi said the court's fourth medical bulletin in little more than a week showed the desert kingdom, known for its secrecy, wanted to dispel any rumors. "They want to make a point that there is no room for rumors ... Everybody should know that we do have a system to resolve all unexpected situations," he added, pointing to an allegiance council set up by Abdullah to regulate the succession. However, the princes at the top of the hierarchy are all in their 70s and 80s and the Al Saud family, which founded the kingdom with clerics in 1932, will remain a gerontocracy unless it soon promotes younger princes. The king is thought to be 86 or 87 and Sultan is only a few years younger. Many technocrat ministers such as Oil Minister Ali al-Naimi are in their 70s. Saudi Arabia's political stability is of global concern. It controls more than a fifth of the world's crude reserves, is a

vital U.S. ally in the region, a major holder of dollar assets and home to the biggest Arab bourse. Abdullah, valued by Washington as a moderate at the helm of a pivotal Muslim country, went into hospital on Friday after a blood clot complicated a slipped disc suffered the week before. "The king will leave on Monday for the United States to complete medical tests," the Saudi Press Agency SPA said. Diplomats say there has been uncertainty about Abdullah's health since he canceled a visit to France in July. Crown Prince Sultan, who has had unspecified health problems over the past two years, was returning to Riyadh on Sunday evening from Morocco, where he had been since August. Saudi officials say Sultan, who is also defense minister, has been working normally since returning in December from an extended medical absence. Diplomats say he was treated for cancer and has been much less active in public since. The United States is keen to see reforms continue after the September 11 attacks of 2001 on U.S. cities brought Saudi Arabia's puritanical Wahhabi form of Sunni Islam to the top of global concerns. Fifteen of the 19 al Qaeda attackers were Saudis. Saudi Arabia has become key to global efforts to fight al Qaeda. A Saudi intelligence tip-off helped Western governments stop package bombs destined for the United States that were sent on planes out of Yemen last month. PRINCE NAYEF Interior Minister Prince Nayef, comparatively youthful at around 76, was appointed

second deputy prime minister in 2009 in a move that analysts say will secure the leadership in the event of serious health problems afflicting the king and crown prince. The position does not guarantee that Nayef would become king but places him in a strong position to shape policy. He has expanded his influence into areas such as economic policy and most diplomats expect him to become king at some stage. In some government offices Nayef's picture has been added to that of Abdullah, Sultan and state founder Abdul-Aziz Ibn Saud. Analysts and diplomats see this as part of the jostling for position at the top of the ruling family. Last week the king transferred control of the National Guard, an elite Bedouin corps that handles domestic security, to his son Mitab, and diplomats expect more royal moves. "This appears to be the sign that changes are coming and younger princes are now getting promoted," said Dubai political analyst Theodore Karasik. On Sunday, SPA said King Abdullah had extended the terms of several top officials for four more years, among them the Saudi ambassador to the United States and the relative moderate grand mufti, or top Islamic scholar, Sheikh Abdulaziz Al al-Sheikh. As things stand, only sons of the state's founder can become king. About 20 are still alive, some in ill health. With both the king and crown prince indisposed, Prince Nayef has featured heavily in state media in the past week, overseeing the haj pilgrimage in the king's place and receiving guests. Reuters

Small-scale attacks to continue: Al Qaeda group DUBAI: Al Qaeda's Yemenbased wing threatened more small-scale attacks against the United States to inflict economic damage, particularly to the aviation industry. Al Qaeda in the Arabian Peninsula (AQAP) said it had cost just $4,200 (ÂŁ2,629) to mail two parcel bombs from Yemen to the United States last month. The bombs were intercepted in Britain and Dubai, sparking a worldwide security alert. "It is such a good bargain for us to spread fear amongst the enemy and keep him on his toes in

exchange of a few months of work and a few thousand bucks," AQAP said in its online Inspire magazine, released on militant websites. "We are laying out for our enemies our plan in advance because as we stated earlier our objective is not maximum kill but to cause (damage) in the aviation industry, an industry that is so vital for trade and transportation between the US and Europe." The United States had already stepped up airline passenger security after a Nigerian man tried to detonate explosives

hidden in his underwear on a flight from Amsterdam to Detroit last December. AQAP had claimed responsibility. AQAP said last month's failed parcel bomb operation, where the bomb-loaded printers had been sent from Yemen's capital Sana to two synagogues in Chicago, had been cheap to execute. "Two Nokia mobiles, $150 each, two HP printers, $300 each, plus shipping, transportation and other miscellaneous expenses add up to a total bill of $4,200," AQAP said. -Reuters

CONTINUATION No #1

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and this will absolutely increase its leverage." It is difficult to verify any reports on North's nuclear programmes because international nuclear inspectors were expelled from the country some 18 months ago. The North's reported nuclear advances come nearly two months after Kim Jong-il initiated the transition of power to his youngest son, Kim Jong-un, and analysts say he wants to use nuclear muscle to boost his son's credentials with the powerful military. -Reuters

Hamas at all levels until we restore Palestinian national unity," he added. The two factions have been at loggerheads since Hamas seized Gaza in June 2007, ousting forces loyal to the Palestinian president and effectively restricting his authority to the Israelioccupied West Bank. -Agencies

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present, the verdict said. The boy was later returned to his family unharmed, and the verdict made no mention of any booby traps being found. In Gaza, Rabah cried foul at Sunday's sentence. Continued from page 12 "It's unfair. They should have been jailed for a year or two," he No #2 told Reuters.Rabah's mother, Afaf, called for the Israelis to be package of incentives to get Netanyahu to accept a one-off 90day freeze, including an additional 20 F-35 fighter jets, worth brought up before an international war-crimes court. Efforts to three billion dollars, and a pledge to block any international have Israel's military and government leaders prosecuted abroad efforts to impose a peace deal on Israel. But Abbas spoke out have spiraled since the war, which killed some 1,400 Palestinians. The soldiers found guilty in the Tel Al-Hawa case were disagainst the US diplomatic efforts. "We told the Americans that we wanted nothing to do with their deal-making. We reject the idea of charged as first sergeants but the court-martial in southern Kastina linking these bargains to the resumption of negotiations," he said. demoted them to sergeants. "If the issue is a matter of weapons for one side or another, then Israel Radio quoted them as saying they would continue to serve we don't accept it." Abbas said there were still no firm proposals as infantry reservists, annual duties that entail training, patrols and from Washington. "So far nothing official has come out of the US even combat. "They were kept on as Israel Defence Force comadministration, either to us or to the Israelis, that we can com- manders, and we need people like these in the military," the exment on," he said. After talks with Abbas on Saturday, Arab soldiers' lawyer, Ilan Katz, told reporters.-Reuters League chief Amr Mussa said that as soon as the Palestinians Continued from page 1 No #4 received the US response, the bloc's follow-up committee would recent flood scenario that hampered the spudding activity (3) hold an emergency meeting to discuss its next step. The League has given Washington until the end of this month prevailing circular debt adversely impacting sector's cash flow, and to rescue the peace talks. Abbas also held talks on Saturday with (4) heightened security concerns in the rich hydrocarbon basins of Egyptian intelligence chief Omar Suleiman, who has been bro- KP and Balochistan. He added amongst the listed E&Ps, OGDC kering reconciliation talks between the Western-backed was only able to drill one exploratory well (Sehar-1), while no Palestinian leader's Fatah faction and the Islamist Hamas move- wells were drilled by PPL and POL. The representation of these ment which controls Gaza. "So far we have not reached an agree- companies also came from their working interest in Tal Block, and ment with Hamas," Abbas said, accusing the movement of going they all benefited from the only discovery of the year so far. back on some of its earlier bargaining positions. MOL was able to have its 5th discovery in the Tal block. On the "Despite all that... we will continue to hold a dialogue with developmental front, OGDC was able to drill 4 wells with working

interest in 3 other developmental wells. PPL's developmental activity also remained muted while having working interest in Qadirpur, Naspha and Miano. POL drilled only one appraisal well, Domail-II. This being POL's 2nd endeavor in the Iklas block, after Domail-1 (Temporarily Suspended), our belief in the discovery of the hydrocarbon reserve has strengthened.

No #5

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166.1 million shares traded a week before last mainly because investors preferred to stayed sidelines ahead of Eid holidays. As per details, foreign investors deciding for buying fresh positions bought shares worth $4.8 million and sold $1.93 million, resulting in net buying of $2.87 million during the last week.On daily basis, foreigners invested $1.6 million and $1.26 million on Monday and Tuesday. On the other hand, biggest weekly selling was witnessed from banks which sold $6.93 million of shares in the local bourse against the buying of $5.83 million, thus turning the net selling worth of $1.1 million.

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minister further said that he will stay two more days in Saudi Arabia and after his return will submit his report to the President and Prime Minister about Hajj arrangements. -Agencies

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Minister for Water and Power, Raja Pervez Ashraf announcing the end of power crises said that the construction work on more than seven small dams is under way and would have to use rental power plants till completion of other projects. Ashraf said that the government arranges the rental power plant for five years to overcome the energy crises in the country. He said that the project is sign of friendly ties with Turkey, adding Turkey always supported Pakistan in testing time. The federal minister said that they would have to pay Rs45.5 billion in five years in the wake of this plant which would produce 232 megawatt electricity with 1200 furnace oil. This power would be provided to KESC through PEPCO, he added. Raja Pervez Ashraf said that Karachi is the business capital of the country and that the new project would help increasing the economic activities in the city. He said that the government is working on different hydel, coal and wind power projects but these projects are long term and therefore rental projects are being employed to lessen the intensity of the power crisis. The federal minister also said that the residents of Karachi would not pay any additional amount for the power provided by the ship. The federal minister maintained that some eight IPPs and two rental power plants are producing 1800 megawatts electricity while four more IPPs of 800 MW soon would be reached here. He reiterated that the crises have been intensified as no project was stared from last twelve years.

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Pullout should match ground realities: Qureshi

Nato's hasty exit plan worries Pak

KARACHI: Sindh Governor Dr Ishrat-ul-Ebad Khan talking to Interior Minister Senator A. Rehman Malik during a meeting at Governor House. APP

Pak, US striving to bring breadth to ties: Haqqani WASHINGTON: Pakistan and United States are working to bring predictability and breadth to their relationship through strategic dialogue in contrast with transactional nature of the past bilateral ties, Islamabad's ambassador in Washington Husain Haqqani said. He also told a gathering of American experts and South Asian policy analysts at Washington's Atlantic Council that Pakistan seeks peaceful relations with its neighbors India and Afghanistan on the basis of mutual trust and respect. "We have decided to move past the transactional nature of the relationship ---- and that means we have to create a level of predictability and some breadth in the relationship through the mechanism of strategic dialogue," he observed after touching upon ups and downs in PakistanUS relations over the past decades during which their ties centered on

security considerations. Elaborating his point, Haqqani cited three rounds of high-level strategic dialogue between the two countries this year, which, according to Secretary of State Hillary Clinton, represents the most extensive US engagement with any country in the world. "That basically reassures Pakistan that this time around the US is not going to walk away in any precipitating manner as they did soon after the imposition of Pressler (amendment) sanctions following the Soviet withdrawal from Afghanistan," Haqqani said in a discussion moderated by Shuja Nawaz, who heads South Asia Center at the Council. During the interaction, the ambassador also drew attention to close anti-terror and intelligence cooperation between the two sides and said it has helped foil several terrorist plots. "Partnership means that you will

disagree sometimes. There will not be a hundred percent congruence of views or of interests. But, at the same time, we are committed to the fact that we are America's allies and the Americans are our allies. We have to understand each other's concerns. We may sometimes disagree on what we want." He explained that Pakistan looks at a lot of problems from the regional perspective while the US looks at things in a global context. Haqqani also felt that Pakistan progressing on the democratic path will also bolster bilateral relations. "Things have changed (in comparison with the past). Pakistan intends to remain a democracy. Our military and our civilian leaders are both committed to making that democratic process work. And that makes us partners as democracies in bringing stability to what is essentially a very difficult and complex region." -APP

US envoy due in Seoul amid NKorea N-plans

Malik rules out Karachi under Army control

Sources familiar with the North's nuclear ambitions said in Washington on Saturday that a US nuclear scientist saw hundreds of centrifuges in the North this month, adding to worries it is seeking a second way to obtain fissile material for atomic bombs. Atomic experts who visited the North's main nuclear complex this month also reported seeing construction of another new facility, believed to be an experimental light-water reactor, and there have been reports of activity at a nuclear test site. North Korea, which walked out on talks to disable its atomic arms programme last year, has said it wants to return to the negotiating table. Experts say this is a sign that sanctions are hurting its economy. Analysts say by showing off its nuclear hand, it is seeking to boost its capability to win concessions. "This is no surprise at all, though it is real concern," said Kim Tae-woo at the Korea Institute for Defence Analysis. "North Korea has said it wants to sit down for six-party talks, See # 1 Page 11

KARACHI: Federal Interior Minister Rehman Malik has said that Lashkar-e-Jhangvi (LeJ) and Tehreek-e-Taliban Pakistan (TTP) are jointly carrying out terrorist activities in the country. Talking to media at Karachi airport, the minister said that investigation is underway regarding the CID building bombing and thus none could be blamed for it as yet. He said that both MQM and PPP were one on empowering the middle class and elimination of corruption in the country. He approved of the revolution call given by Altaf Hussain, "Altaf Hussain is right when he asks for revolution because corruption should end and middle class should be empowered". He ruled out Army's take over of Karachi. -NNI

SEOUL/ WASHINGTON: The top US envoy on North Korea heads to Seoul on Sunday to discuss ways to thwart Pyongyang's nuclear ambitions amid fresh concerns about its uranium enrichment programme. Stephen Bosworth's visit to the main regional powers this week comes amid a flurry of reports about the North's developing nuclear programme. Analysts say the reports are part of the North's time-honoured strategy to gain leverage in negotiations. Bosworth will meet his South Korean counterpart Wi Sung-lac and the country's foreign minister, Kim Sung-hwan, today for talks on ways to resume stalled aid-for-disarmament talks with the North, officials said. A foreign ministry official in Seoul said reports that the North was building a uranium enrichment facility would also be raised during his visit, but could provide no further details. Bosworth will travel to Tokyo and Beijing after his stop in Seoul. South Korea's Wi will also go to Beijing on Monday.

No to Jerusalem-less settlement halt: Abbas CAIRO: Palestinian president Mahmud Abbas said on Sunday that he will not return to the negotiating table with Israel without a settlement freeze that includes annexed Arab east Jerusalem. The Palestinian leader also hit out at US efforts to persuade Israel to agree to a more limited freeze applying only to the rest of the occupied West Bank in return for a raft of political and security benefits, saying he wanted to have nothing to do with such deal-making. "If it does not encompass Jerusalem, in other words if there is not a complete freeze on settlement in all the Palestinian territories including Jerusalem, we will not accept it," Abbas told reporters after talks with Egyptian President Hosni Mubarak. "If Israel wants to return to its settlement activities, then we can't go

on. A settlement freeze must include all of the Palestinian territories and above all Jerusalem," Abbas said. Direct peace talks between Israel and the Palestinians resumed on September 2 but collapsed three weeks later with the expiry of a 10month Israeli freeze on settlement building in the West Bank. Although that freeze did not apply directly to east Jerusalem, Israeli Prime Minister Benjamin Netanyahu quietly held off approving projects there for most of its duration to avoid the political fallout. But faced with opposition from hardliners in his cabinet to any new settlement freeze, Netanyahu has said repeatedly that no restrictions will apply to construction in east Jerusalem. In talks last week, US Secretary of State Hillary Clinton put together a See # 2 Page 11

ISLAMABAD: Pakistan said Sunday it was satisfied with Nato's plans to hand over control to Afghan security forces by the end of 2014, but cautioned against any withdrawal that doesn't acknowledge "ground realities." Pakistan is crucial for the US-led efforts to stabilise war-ravaged Afghanistan because its border areas are sanctuaries, and training grounds, for al Qaeda and Taliban militants. Western allies have been pressing Pakistan to take tough action against these havens. At a conference in Lisbon, Nato agreed to hand control of security in Afghanistan to Afghan forces by 2014 as several Western nations seek an exit from almost a decade of war deeply unpopular among their people. Nato said it could halt combat operations by 2014 as well, if security conditions were good enough, a proviso that Pakistan's Foreign Minister Shah Mehmood Qureshi said was key to any pullout of foreign forces. "It (the timetable) has been qualified and the qualification is that they begin the withdrawal in line with ground realities and the ability of the Afghan authorities to resume the responsibility of their security," Qureshi told Reuters by telephone from Indonesia, where he is on an official visit. A rise in violence in Afghanistan after any pull-out, or a collapse into chaos, is a major concern for Pakistan, which itself is fighting a growing insurgency by homegrown militants. Memories of the United States walking away from Afghanistan

Taliban terms Nato early pullout unwise KABUL: The Afghan Taliban described Nato's plan to withdraw combat troops by the end of 2014 as "irrational," reiterating Sunday its demand for all foreign troops to leave immediately or risk more bloodshed. In a five-point statement released in response to a Nato summit that wrapped up in Lisbon on Saturday, the Taliban said delaying the withdrawal of foreign troops would only lead to more "tragic events and battles." US President Barack Obama, who is due to review his Afghanistan war strategy next month, has already committed to a gradual drawdown of US troops from July 2011, his counterpart Hamid Karzai saying he wants Afghans in control by 2014. That target was agreed by Nato leaders in Lisbon on Saturday, although some U.S. and NATO officials have said a spike in violence and problems in building up a capable Afghan army and police force to take over could make it hard to meet the goal. Mark Sedwill, the top Nato civilian representative in Kabul, said last week the transition could spill over into 2015 in some of the most violent areas of Afghanistan. Obama said on Saturday his aim was to halt major combat operations by the end of 2014 but others were cautious. Nato Secretary-General Anders Fogh Rasmussen said no security vacuum would be left behind and United Nations Secretary-General Ban Kimoon said the transition would be shaped by security rather than timetables. The Taliban dismissed all such talk as "irrational." Brigadier General Josef Blotz, a senior spokesman for Nato forces in Afghanistan, said the transition was not "calendar-driven but conditionsbased," with the end of 2014 set as the target date. Violence in Afghanistan is at its worst since the Taliban were overthrown by US-backed Afghan forces in late 2001, with record casualties on all sides of the conflict despite the presence of about 150,000 foreign troops. -Reuters after the Soviet withdrawal in 1989 Pakistan," Rahimullah Yusufzai, an and leaving the region in chaos are expert on Taliban and tribal affairs also still raw in Pakistan. said. "If the Afghan army fails to delivUS special representative for er and foreign forces leave Afghanistan and Pakistan Richard Afghanistan, then there will be Holbrooke also has said that 2014 another civil war in Afghanistan did not mark end of international and it will have a big impact on presence in Afghanistan. -Reuters

Israel troops suspended on Gaza abuse JERUSALEM: An Israeli courtmartial handed down suspended prison sentences on Sunday to two former soldiers who forced a Palestinian boy to search for suspected booby traps during the Gaza Strip war, the military said. The ruling meant the ex-conscripts, who were last month convicted of reckless endangerment and conduct unbecoming, are free but face a minimum 3-month jail term if they commit another crime. They were also stripped of their ranks as reservists. While serving in Israel's ground offensive against Hamas-led guerrillas on Jan 15, 2009, the two infantrymen helped storm an apartment building in the Gaza City district of Tel Al-Hawa. Rounding up residents, they ordered nine-year-old Majed Rabah to check baggage for hidden explosives, said the Israeli verdict, which drew on witnesses accounts. When Rabah failed to open one bag, the soldiers pulled him back and shot at it, endangering everyone See # 3 Page 11

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