The Financial Daily-Epaper-25-10-2010 by The Financial Daily

International Karachi, Monday, October 25, 2010, Zul-Qa’dah 16, Price Rs12 Pages 12

Geithner in China to walk trade talk

India sees Pak nukes as secure

See on Page 12

New budget to be pro-masses: Awan

See on Page 12

Politics is more than power: Rasheed

See on Page 12

Qureshi reaches home; terms Pak-US talk successful

Economic Indicators $17.10bn 13.77% $5.18bn $9.03bn $(3.85)bn $(545)mn $2.65bn $455.10mn Rs 310bn $55.63bn Rs 4863bn $100.90mn -3.85% 4.10% $1,051 170.86mn

Forex Reserves (15-Oct-10) Inflation CPI% (Jul 10-Sep 10) Exports (Jul 10-Sep 10) Imports (Jul 10-Sep 10) Trade Balance (Jul 10-Sep 10) Current A/C (Jul 10- Sep10) Remittances (Jul 10-Sep 10) Foreign Invest (Jul 10-Sep10) Revenue (Jul 10-Sep 10) Foreign Debt (Jun 10) Domestic Debt (Aug 10) Repatriated Profit (Jul- Aug 10) LSM Growth (Aug 10)

GDP Growth FY10E Per Capita Income FY10 Population

$7.5bn multisector US grant won: FM Govt to decide timeline of North Waziristan Operation

Portfolio Investment

Special Correspondent / Agencies

SCRA(U.S $ in million)

64.28 15.05 -1.98 2505

Yearly(Jul, 2010 up to 21-Oct-2010) Monthly(Oct, 2010 up to 21-Oct-2010) Daily (21-Oct-2010) Total Portfolio Invest (15 Oct-2010)

NCCPL (U.S $ in million)

FIPI (22-Oct-2010) Local Companies (22-Oct-2010) Banks / DFI (22-Oct-2010) Mutual Funds (22-Oct-2010) NBFC (22-Oct-2010) Local Investors (22-Oct-2010) Other Organization (22-Oct-2010)

1.03 3.20 -4.91 2.33 -0.94 -0.14 -0.56

Global Indices Index

Change

KSE 100

10,652.48

93.74

Nikkei 225

9,426.71

50.23

Hang Seng

23,517.54

131.94

Sensex 30

20,165.86

94.72

SSE COMP.

2,975.04

8.49

FTSE 100

5,741.37

16.49

Dow Jones

11,132.56

14.01

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

$.Price PKR/Shares 2.60 111.61 19.10 163.97 2.00 42.93 1.70 36.49 9.96 34.20

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

12.77% 13.08% 13.22% 13.50% 12.70% 12.99% 13.21% 13.61% 13.71% 13.62% 13.75% 13.80% 14.22% 14.36% 14.52%

20-Oct-2010 20-Oct-2010 20-Oct-2010 29-Sep-2010 22-Oct-2010 22-Oct-2010 22-Oct-2010 22-Oct-2010 22-Oct-2010 22-Oct-2010 22-Oct-2010 22-Oct-2010 22-Oct-2010 22-Oct-2010 22-Oct-2010

Commodities Crude Oil (brent)$/bbl 82.96 Crude Oil (WTI)$/bbl 81.69 Cotton $/lb 119.71 Gold $/ozs 1,325.10 Silver $/ozs 23.12 Malaysian Palm $ 968.70 GOLD (NCEL) PKR 36,739 KHI Cotton 40Kg PKR 8,359

Open Mkt Currency Rates Symbols

Buy (Rs)

Australian $ 84.55 Canadian $ 84.60 Danish Krone 14.80 Euro 118.60 Hong Kong $ 11.00 Japanese Yen 1.041 Saudi Riyal 22.90 Singapore $ 65.36 Swedish Korona 12.10 Swiss Franc 88.00 U.A.E Dirham 23.20 UK Pound 136.35 US $ 86.05

Sell (Rs)

84.75 85.10 15.20 119.10 11.30 1.067 23.20 65.60 12.60 88.50 23.55 136.60 86.30

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

84.12 83.66 16.03 119.53 11.05 1.057 22.88 65.90 12.86 88.59 23.36 134.92 85.85

84.32 83.86 16.06 119.81 11.08 1.059 22.93 66.05 12.89 88.79 23.41 135.24 86.03

Weather Forecast CITIES

ISLAMABAD KARACHI LAHORE FAISALABAD QUETTA RAWALPINDI

MAX-TEMP

26°C 38°C 24°C 29°C 26°C 26°C

MIN

14°C 21°C 16°C 17°C 7°C 14°C

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LAHORE: Foreign Minister Shah Mehmood Qureshi addressing a press conference upon his arrival from US here Sunday. -APP

IMF doubles ME, Pakistan, Afghanistan growth rate outlook

Pak GDP to grow 4.2pc this yr: IMF DUBAI: The growth of Gross Domestic Product (GDP) of Pakistan is seen at 4.2 per cent during the current year. This was disclosed by International Monetary Fund in its latest report released Sunday. The International Monetary Fund's report titled 'Regional Economic Outlook' covering Middle East, North Africa, Pakistan and Afghanistan (MENAP) said that said region is experiencing a generally robust recovery, aided by rising oil prices, but regions oil-importing nations including Pakistan and Afghanistan continue to face some hurdles especially Pakistan where devastated floods have incurred the nation huge losses. The IMF's report proj-

IMF growth projections for the ME, North Africa, Afghanistan and Pakistan (MENAP)

Special Correspondent LAHORE: Minister for Petroleum and Natural Resources Syed Naveed Qamar has said that at present the prices of gas will not be increased. Talking to newsmen here on Sunday, he said the prices of gas are ects the region's output to expand by 4.2 per cent in 2010 or nearly double the 2.3 per cent rate recorded in 2009. Growth in 2011 is projected at 4.8 per cent. "We expect most countries in the region to grow faster in 2010 and 2011 than in 2009," Masood Ahmed, Director of the

Health budget slashed to half health ministry projects as hepatitis, malaria, and lady health workers' among many other health projects. Ministry of finance has even not yet explained as to whether these 12 per cent funds of first-term were delayed or have been reduced. The health ministry's budgetary allocation for the FY was more than Rs24 billion, out of which See # 6 Page 11

KSE during Last Week

Mutual funds bag $3.2mn shares Ahmed Siddique KARACHI: Mutual funds which were sitting on cash, waiting for the right time to deploy the funds, invested $3.2 million at the Karachi Stock Exchange during past week. They invested holding worth $20.55 million in local bourses and sold

$17.37 million in shares resulting in net-buying of $3.2 million as per the data made available by the National Clearing Company of Pakistan Limited (NCCPL. Similarly, local companies and foreign investors also bought on net basis $4.16 million and $2.76 million respectively. See # 7 Page 11

Sindh eyes Rs40bn in gas, oil royalties KHAIRPUR: Chief Minister Sindh Syed Qaim Ali Shah has said that Sindh may receive Rs 30 to 40 billion in the head of gas and oil royalty and provincial government is active in this regard.

will invest for the construction of Gomal Zam and Satpara dams. They also intimated that they will consider taking part in the construction of Diamir-Bhasha Dam. Qureshi said under public diplomacy programme the United States will impart training to two hundred Pakistanis in the usage of the modern modes of media management to the journalists. He said views were also exchanged how to expand Radio Pakistan's coverage particularly in Balochistan and the Southern Punjab. Foreign Minister said President Obama intends to have an extensive See # 5 Page 11

Gas-price status quo for now: Qamar

MoF reduces allocation to R3bn from Rs6bn

ISLAMABAD: Ministry of finance has deprived health ministry of 50 per cent of its budgetary allocation for the current fiscal year, putting many health projects in doldrums. Sources have informed that health ministry was to be disbursed Rs6 billion for the first-term of FY; but it has been reduced to Rs3 billion. This reduction was creating problems for such

LAHORE: Foreign Minister Shah Mehmood Qureshi has termed the Pak-US Strategic Dialogue 'successful', 'progressive' and 'fruitful', added that United Stated has approved $7.5 billion grant for the uplift and development of 13 sector of Pakistan. This grant would be rendered during the period spanning five years. He was addressing a news conference here Sunday upon his return from Washington, where he attended Pakistan-US Strategic Dialogue. Foreign Minister made it clear that it will be a grant and not loan which

will be used for the betterment of Pakistan. He said another success of this dialogue is that the United States has announced 2 billion dollars security assistance to Pakistan to help it plan for its defence needs. He described the Pak-US Strategic Dialogue successful saying its result would emerge soon. He said 13 sectors were covered in the dialogue including security, defence, education, health, agriculture, water, power and energy. He said that progress has been made on twenty seven scientific projects. In water sector the United States

Addressing the inauguration ceremony of Petroleum Institute constructed in Government College of Technology Khairpur with the total worth of Rs102 million, CM said that young See # 8 Page 11

IMF's Middle East and Central Asia Department said. "With the economic recovery taking hold, the region needs to resume its focus on medium-term challenges: diversification and financial market development for the oil exporters, and tackling See # 4 Page 11

Gilani calls for embellishing Pak image LAHORE: Prime Minister Syed Yousuf Raza Gilani has stressed upon the foreign-based Pakistani journalists to play their effective role in removing all misconceptions about Pakistan. He was talking to a sixmember Pakistan Journalists Association, UK, delegation headed by Tahir Chaudhry at his residence here on Sunday. A representative of a charity organisation "Muslim Hands" was also present on the occassion. The Prime Minister said that Pakistan was simultaneously faced with a number of challenges and we are already in the middle of war against terrorism and facing economic recession, while another disaster came in the shape of floods, which delayed the sensitization of the world to realise Pakistan's problems and destructions due to flood calamity. -Agencies

Pak-UK talks begin today ISLAMABAD: Interior minister level talks between Pakistan and UK on security matters will begin from Monday (today). British delegation led by UK Home Secretary Theresa May will be arriving here to participate in the meeting. See # 9 Page 11

fixed for six months. He said after the hearings of Ogra if it approves the increase will be effective from January. Regarding load-shedding in the coming winter, the Minister said that after the approval of the new load shedding plan by Economic

Coordination Committee it will be announced publicly. He urged the Gas Associations and the Gas Companies to sit together and resolve the problem. He said consultations with all stakeholders are in progress to smoothly deal with the load shedding problem.

Monday, October 25, 2010

Sindh govt not releasing dengue fund: Dr Sagheer Dengue fever on the rise countrywide Rs20mn fund not being released: minister

n n

KARACHI: Sindh Health Minister Dr Sagheer Ahmed has revealed on Sunday that the government of Sindh had stopped the fund worth of Rs20 million allocated for the prevention of dengue virus. Addressing a press conference here in Civil Hospital, the provincial health minister said that number of dengue affected patients has increased during last 20 days and more than 15 people have died due to dengue fever alone in Karachi. He said they were insuring the effectiveness of dengue surveillance

SSC-I science group results today KARACHI: The Board of Secondary Education Karachi (BSEK) will declare the result of SSC Part I Science Group Annual Examination 2010 on October 25. This was announced by the Controller of Examinations of the BSEK on Sunday.-APP

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

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

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

System and for this purpose a spray campaign has been launched to control the deadly virus. Responding to a question he said, Every year Sindh government provides 20 million for the prevention of dengue but this time inspite of repeated request the government did not release the said amount. "Due to the unavailability of funds ministry was facing severe problems to cope the issue" he added. He said 2974 cases have been registered in Sindh and the numbers were increasing with every new day. "Use of aspirin and

Anti-Biotic could be dangerous and it could increase the intensity of disease" he added. dengue fever, a mosquito-borne disease, is on the rise and claiming more lives. According to Media reports, two more dengue patient died in Karachi taking the toll to 15 in 2010 only, while 86 more admitted to the hospitals in the last 24 hours. While in Lahore at least 130 patients are confirmed to be infected with the virus in last 24 hours, and one each in Okara and Sialkot. The number of patients in Punjab has

reached to 735 from which 627 were from Lahore. In Matiari, a minor, 5 year old Nimra died today. dengue cases have also been reported from Hyderabad, Shahdadpur, Mir Pur Khas and Sukkur. WHO regional figures show there were 212,988 dengue cases with 674 deaths in 2008, increasing to 242,424 cases and 785 deaths last year. There have been 204,759 cases with 831 deaths so far this year. Standing water attracts dengue-carrying mosquitoes, it has been told.Online

Govt committed to help the disable: Qaim KHAIRPUR: Chief Minister Sindh Syed Qaim Ali Shah said on Sunday that Sindh government is paying attention to provide jobs to disabled youth, he said while addressing a inaugural ceremony of the Petroleum Technical Training Institute and distributing cheques of Benazri Bhutto Rozgar Scheme among the disables here. Qaim also said a group has forgotten the previous generals and is carrying out wrong propaganda against elected President Asif Ali Zardari, adding Sindh has enormous natu-

ral resources, so we can earn over Rs40 million from its royalty. He urged youth to come forward and get technical education and in this connection Sindh Technical Education & Vocational Training Authority would be introduce for promotion of technical education and ten such centers are being set up in 10 districts of province with the help of Petroleum and Natural Resources Ministry. Earlier, Sayed Qaim Ali Shah along with provincial minister Abdul Salam Thaheem inaugurated Petroleum Technical

Training Institute and its hostel completed with the cost of Rs88 million. The Sindh Chief Minister also inaugurated 3.5 kilometer-long road of the city, which is being constructed with the cot of Rs15 million. The CM also distributed Rs2.5 million among 42 disable persons under Benazir Bhutto Income Support Program. Sindh Chief Minister also met with various delegations at the Circuit House Khairpur and listened to their problems and issued directives to relevant departments for their solution.-PPI

KARACHI: Sindh Provincial Minister for Tourism Shazia Marri takes keen interest in the pictures of Shaheed Benazir Bhutto being displayed during pictures exhibition of the slain leader of PPP.-Online

Witnesses to get govt protection KARACHI: The Sindh Home Department has drafted A Witness protection Program following the directives of Provincial Minister for Home and Prison, Dr Zulfiqar Ali Mirza. The working paper which is prepared by Consultant on Home Affairs Sharfuddin Memon mainly focused on a program designed to protect the witnesses of crimes from bodily harm as a way of encouraging people to come forward to testify on what they know about the crime. "The Witness Protection Program will ensure protection to witnesses in major criminal cases from physical harm and intimidation. The Program also applies to witness and close family members who may also be under threat," the consultant noted. "The idea to put Witness Protection Program in place

conceived after observing that witnesses remained reluctant to come forward because of fear, especially in cases of homicide, terrorism and other heinous crimes," the working paper added. Dr Zulfiqar Mirza while reviewing the working paper directed Home Department to effectively cover under the said program security to the witness and close family members, ensuring secure housing facility to the witness until he/she has testified or until the treat, intimidation or harassment disappears or is reduced to a manageable or tolerable level, to assist witness and family members in obtaining means of livelihood, extend free education and health facilities to witness's minor or dependent children in case the witness is killed, died or handicapped due to permanent incapacity.-PPI

AKU teaching moot on tuesday KARACHI: The Aga Khan University (AKU) Institute for Educational Development (AKUIED) is organising a three-day International Conference from Oct 26 on the Role of Teacher Education in Complex Emergencies. An official of the institution said on Sunday that this year's conference aims to share innovations in teacher education to counteract crises that directly affect human development. Director, Institute for Educational Development, BRAC University, Bangladesh, Dr Manzoor Ahmad, will be delivering the keynote address on the occasion.-APP

KARACHI: Sindh Provincial Minister for Health Dr Sagheer Ahmed looking the condition of a patient of Dengue Fever in Denque ward in Civil Hospital. Nearly 3000 people are reported suffering from the deadly dangue fever from which 15 people lost their lives.-Online

Korea offers diesel locos to Pakistan KARACHI: Korea has shown interest in train operation in Pakistan under Pakistan's Open Access Policy. Korean Railway has said that it would bring its coaches and locomotives to run the trains. According to Pakistan Railway sources, Korean Railway has also offered its diesel operated locomotives to Pakistan Railway which it is replacing with high speed electric locomotives. In this regard a 3-member delegation of Pakistan Railway comprising its General Manager (Operation), Director Planning and Additional General Manager is leaving for Korea on Monday to hold talks with Korean railway authorities with regard to its offer. The diesel operated Korean locomotives can still be used for another 10-20 years in the Pakistan Railway system while railway has no funds to buy new locomotives. According to railway sources Korean Railway has also shown interest in operating sub-urban trains in sub-urban areas of Lahore. Gujranwala-Lahore, Faisalabad-Lahore, QasurRaiwind-Lahore and Wagah-Lahore form the suburb of Lahore and Korean railway has offered to bring its coaches and locomotives to operate the sub-urban trains. The railway delegation after studying the Korean offer and holding preliminary talks there would submit its report to Ministry of Railways here.-APP

PPP striving to fulfill BBâ&#x20AC;&#x2122;s dream: Sharmila KARACHI: Advisor to Chief Minister Sindh on Information Sharmila Farooqui said on Sunday that the PPP government is struggling to materialise the dream of Shaheed Mohtarma Benazir Bhutto for achieving stable democracy, strong federal polity, provincial harmony and larger socio-economic development. "Anti-democratic forces who have launched barrage of criticism for gaining their ulterior motives will never success because the people are well-aware of their evil designs. These forces were defeated by Mohtarma Benazir Bhutto

in the past and are again out to get lust of power through backdoors but the present regime with the support of people will hand them a massive defeat," she said while talking to media during her visit to the exhibition of Shaheed Mohtarma Benazir Bhutto's photographs collection by Agha Feroz at a local hotel. She hailed the organisers for the wonderful exhibition and paid rich tributes to Shaheed Benazir Bhutto for rendering enormous services to the people of the country. The advisor said Benazir Bhutto was a visionary leader who brought democracy in the

country time and again for welfare of the people and added that she during her rule ensured an independent judiciary, free media and greater socioeconomic development in the country while President Asif Ali Zardari is also pursuing her policies in true spirit for the good of people. She said that it was Mohtarma Benazir Bhutto who raised the slogan of reconciliation for supremacy and sovereignty of the country. Political reconciliation means to cooperate with political parties for resolving persisting and lingering national issues facing the country, she observed.-PPI

Automated metering under consideration

PEPCO seeks report LAHORE: The PEPCO Managing Director Rasul Khan Mahsud has constituted a committee to submit a feasibility report on technical and financial aspects of Automatic Reading Meter (Smart Metering). He was addressing his maiden meeting with Chief Executives Officers (CEOs) of DISCOs (power distribution companies) and senior PEPCO officers at WAPDA House here Saturday. During the meeting, the LESCO CEO Saleem

Akhtar briefed that AMR pilot project initiated in Shadbagh and Shadman areas of Lahore with a cost of Rs6.2 million. The AMR has a fire-fly which facilitates two way communication, and if anyone tinkers with the meter, bypasses it or data is lost because of damage to the meter, the same is not only communicated in real time but also saved in adjacent meter installed within the area. The smart metering showed a steep decline in line losses from 11 to 2.9 per cent. After having an intense

debate over the pros and cons of the smart meters, the MD constituted a committee to submit a report about its technical and financial feasibility within one week. The meeting also discussed the frequent consumers' complaints of over-billing and the MD said, "We cannot unnecessary burden our valued customers by over-billing, which will not be tolerated and strict actions will be taken against those found involved in overbilling."-APP

3 Monday, October 25, 2010

Asian currencies

Mostly post losses for week in 2-months SINGAPORE: Asian currencies had their first weekly loss in two months after US Treasury Secretary Timothy F Geithner signaled his government supports a stronger dollar as officials from the Group of 20 nations met in South Korea. Malaysia's ringgit, Thailand's baht and the Singapore dollar retreated from last week's highest levels in at least 13 years. Bank of Thailand Governor Prasarn Trairatvorakul said on Oct. 21 the central bank is studying steps to curb excessive volatility in the baht. South Korea's Vice Finance Minister Yim Jong Yong said his government is discussing several measures to control capital inflows. South Korea's won slumped 1 per cent last week to 1,123.35 per dollar in Seoul. Malaysia's ringgit declined 1 per cent to 3.1170 and Taiwan's dollar weakened 0.4 per cent to NT$30.910. Singapore's currency dropped 0.5 per cent to S$1.3032. The won posted its first weekly loss in two months as authorities signaled they will take tougher measures to curb capital inflows. The government may reveal a round of measures to ease volatility in capital inflows and outflows

as early as late November, the Maeil Business Newspaper reported, citing a government official it didn't identify. "Regulations are coming up," said Ko Yun Jin, a currency trader at Kookmin Bank in Seoul. "Over the weekend we have the meeting of finance ministers. We want to see what they may come up with. There's a bit of caution." China's yuan declined for the first week since early September after the central bank increased interest rates for the first time since 2007. Gross domestic product advanced 9.6 per cent in the third quarter from a year earlier, the statistics bureau said on Oct. 21, the slowest pace in a year. The central bank on Oct. 19 lifted its benchmark one-year lending and deposit rates by a quarter of a percentage point to 5.56 per cent and 2.5 per cent respectively. The yuan dropped 0.2 per cent last week to 6.6572 per dollar. Elsewhere, Indonesia's rupiah declined 0.3 per cent to 8,937 and the Philippines peso fell 0.3 per cent to 43.305. India's rupee slumped 1 per cent for the week to 44.56 and the Thai baht slipped 0.4 per cent to 29.94. -Agencies

Canadian $ little changed, but cap losses for week TORONTO: The Canadian dollar was flat versus the US currency on Friday as investors failed to make any major bets either way amid uncertainty about the outcome of a meeting of the G20 leading economies this weekend. The currency mimicked moves in other markets, including world stocks, which wavered on Friday as traders took profits after this week's run-up. The G20 is striving to put the world economy on a more stable footing and defuse currency tensions that economists fear could trigger trade wars. "You've got the sense that the US is basically out there saying we're not going to do anything to devalue the dollar. Those sort of issues have been providing some support for the US dollar," said David Watt, senior currency strategist at RBC Capital Markets. "The bulk of the work for the G20 and the G20 communique is not going to be finalized until the weekend so the markets are prepared for, well, just in case there's an agreement, we don't necessarily want to be caught short the dollar."

US corn, soy slip as export support fades CHICAGO: US corn and soybean futures drifted lower on Friday in subdued trade, as consolidation and late-session selling by investment funds dragged both markets from early highs as support from robust export demand faded. Soybeans have gained nearly 9 per cent this month and corn has climbed about 13 per cent. Chicago Board of Trade corn has risen more than 33 per cent in two months. CBOT corn for December delivery fell 4-1/4 cents to $5.60 a bushel, off the session high of $5.71. Corn ended the week down 3 cents, or 0.5 per cent. November soybeans closed down 2 cents at $11.99-1/2 a bushel after rising as high as $12.12-1/2. The spot contract was down 2 per cent from Thursday's 14-month high of $12.23-1/2 but finished up more than 8 per cent from a week ago. Funds sold about 5,000 corn contracts and 2,000 soybean contracts on Friday, CBOT traders estimated. US wheat edged higher, with December up 0.3 per cent at $6.70-3/4 per bushel. The contract closed down 4.8 per cent on the week. -Reuters

But Watt added the market was cautious in general about what's going to happen with currencies, given speculation the Federal Reserve will announce more monetary easing next month, likely through direct purchases of US Treasury debt. The Canadian dollar ended at C$1.0269 to the US dollar, or 97.38 US cents, down a hair from Thursday's close at C$1.0263 to the US dollar, or 97.44 US cents. It was down 1.5 per cent for the week. Earlier, the currency firmed to a session high of C$1.0224 to the US dollar, or 97.81 US cents, supported in part by data showing Canadian retail sales in August beat expectations. Economists said Friday's September inflation data, which was largely muted, was unlikely to strengthen the resolve of those who think the Bank of Canada will begin to raise interest rates soon. The central bank paused on rate increases earlier this week, and said that it would have to consider any further rate hikes carefully, given the patchy global recovery. -Reuters

LONDON: The pound posted its biggest weekly loss against the dollar since August amid speculation this weekend's Group of 20 meeting in South Korea may result in an accord that will support the US currency. Sterling slid for a sixth week versus the euro, the longest stretch since November 2004, as G-20 finance ministers and central bankers ended round of talks. The finance chiefs plan to say members will avoid "competitive undervaluation" of currencies, according to an official from a member country, citing a draft statement and speaking on condition of anonymity. The pound and dollar have both dropped versus the euro this month on concern the Bank of England and Federal Reserve will engage in asset purchases, known as quantitative easing. "Investors have had short positions on the dollar betting on further quantitative easing in the US, but there is a risk- factor going into weekend with the G-20," said Lauren Rosborough, a senior strategist at Westpac Banking Corp. in London. "People are lightening their short positions by buying back US dollars to reduce their risk, so that if we do get any surprises, it won't hurt their portfolios as much." Sterling was 0.2 per cent weaker at $1.5672 at 5:07 pm in London, depreciating against the US currency in four of the last five days. The pound fell 0.2 per cent to 88.74 pence per euro and was little changed at 127.72 yen. Bank of England minutes released last week showed policy makers were leaning toward a second round of quantitative easing to boost the economic recovery, helping drive the pound to its weakest level in more than six months versus the euro. The pound has depreciated 5.9 per cent this year against a basket of its developed-country peers, making it the worst performing currency. -Agencies

Coffee slips but posts Copper steep weekly gain ends higher NEW YORK/LONDON: Arabica coffee futures on ICE closed easier on profit-taking on Friday, but remained near 13year highs, underpinned by supply concerns that boosted the market to make the biggest weekly gains in four months. Raw sugar consolidated lower below this week's nine-month peak. Cocoa climbed on light short-covering by investors, with dealers watching top grower Ivory Coast, where elections are due this month. Dealers said world coffee production may fall short of expectations if key growers including Colombia and Vietnam revise output figures lower. December arabica coffee broke above the key psychological level of $2.00 a lb on Thursday, peaking at $2.0350 a lb. ICE December arabica futures fell 2.15 cents or by 1.1 per cent to finish at $1.9885 per lb, an inside day. The spot contract, however, closed the week up 6.7 per cent, the steepest weekly gain in four months. Data released late Friday by the Commodity Futures Trading Commission (CFTC) showed the noncommercial net long position increased to 35,362 lots in the week ending Oct. 19, up 15 per cent from 32,127 lots the previous week.

Liffe January robusta coffee dropped $76 to settle at $1,826 per tonne after setting a twoyear peak for the benchmark second month of $1,910 on Thursday. It finished the week up 8.6 per cent. Cocoa was higher with technicals supporting further gains. ICE December cocoa rose $29 to settle at $2,846 per tonne, up 1.5 per cent from a week ago. Liffe second-month March cocoa finished up 25 pounds at 1,948 pounds a tonne. ICE raw sugar closed lower after a session of choppy dealings, hit by profit-taking and investor sales underpinned by tight supplies and reports of Brazilian buy backs from industry. Traders said a move toward the psychological level of 30 cents may not be possible shortterm because a correction to lower ground from the 9-month peak of 29.23 cents. ICE March raw sugar futures fell 0.13 cent to close at 28.22 cents per lb, posting losses for the second day running. It finished the week up 4.29 per cent. The noncommercial net long position grew to 160,660 lots by Oct. 19, from 153,105 lots previously, according to CFTC data. London December white sugar closed down $17 at $706.90 per tonne. -Reuters

US cotton finishes daily limit up on Texas storms NEW YORK: US cotton futures rose the daily limit on Friday on fund and investment buying after storms ripped through the key growing state of Texas late last night, analysts said. Hail and heavy rain hit Texas, which harvests about half of the US cotton crop, igniting a renewed round of speculative fund and investment buying on uncertainty over how much damage the storms may have caused to the crop. ICE Futures US key December cotton contract increased the 4.00 cent limit to close at $1.1971 per lb. The session low was at $1.1525. It was the third consecutive day of gains for cot-

Sterling log losses for wk

ton, having topped out last week at the record top of $1.198. Volume traded in the cotton market stood at 21,430 lots, about 6.0 per cent below the 30day average at 22,794 lots, preliminary Thomson Reuters data showed. The market's technical outlook though indicates it has moved into overbought ground. The weekly CFTC report showed noncommercials' net long position as of Oct. 19 rising to 35,362 lots from 35,020 lots net long in the preceding report. Managed money accounts' net long slipped to 43,645 lots from 44,026 lots. The net short of producers, mer-

chants and other reportables fell to 81,973 lots, from a net short of 88,041 lots, the CFTC said. In China, the Zhengzhou Commodity Exchange's May cotton futures was last traded at 25,145 yuan per tonne, up 260 yuan from its previous close. Fundamentally, any losses to the US crop could lead to a further squeeze in available supplies and trades said this may drive prices higher as a result. On Thursday, a Thomson Reuters survey of Chinese analysts expect the country's cotton production in 2010/11 to reach 6.45 million tonnes, sharply below the USDA estimate of 6.976 million tonnes. -Reuters

NEW YORK/LONDON: Copper ended up on Friday, but snapped a streak of five consecutive weekly gains, as momentum stalled as the dollar steadied and investors sided with caution ahead of the Group of 20 meeting in South Korea this weekend. Copper for December delivery on the COMEX metals division of the New York Mercantile Exchange ended up 1.55 cents at $3.7970 per lb, after dealing between $3.7515 and $3.8155. Earlier this week, the benchmark December contract rallied to fresh 27-month peak at $3.88, but has since fallen back and looked vulnerable for another challenge of its 20-day moving average. On the London Metal Exchange (LME), benchmark copper closed up $28 at $8,335 a tonne. On Tuesday, it vaulted to its highest level since July 2008, at $8,492. Lead hit a nine-month high and zinc hovered close to a sixmonth peak, buoyed by the shutdown of China's thirdlargest lead and zinc smelter. Copper continued to be supported by a tightening fundamental backdrop. The latest report from the International Copper Study Group showed the market deficit widened to 356,000 tonnes between January and July this year, more than twice the level seen at the same time last year. Copper inventories held in LME-bonded warehouses fell by 1,175 tonnes to 368,825 tonnes, the lowest levels in one year, the latest data showed. Across other metals, aluminum edged up $1 to close at $2,365 a tonne. Lead hit its highest since January, at $2,548 a tonne, before ending up $45 at $2,530. Zinc gained $38 to $2,512, but backed away from an earlier six-month peak of $2,540.25. Nickel dropped $325 to close at $23,225, due to a lack of apparent demand. Tin closed down $100 at $26,400. It hit a record high of $27,338.50 on Oct. 14, amid falling supply from top tin exporter Indonesia. -Reuters

Greenback weekly outlook

Euro seen faltering vs dollar as uptrend stalls Technicals suggest dollar recovery underway NEW YORK: The euro is likely to struggle to hold gains against an oversold US dollar this week as investors await a November Federal Reserve meeting expected to produce a new round of quantitative easing. After surging 7.6 per cent versus the greenback in September, the euro's rise slowed to about 2 per cent in October as investors consolidated the previous month's gains. Uncertainty over the result of the Fed's Nov. 2-3 meeting and a G20 finance ministers' gathering in South Korea has also led investors to reduce extremely bearish bets on the dollar. "We had a strong trend from September to around October 15 -- that is selling dollars and buying euros -- but that has started to slow down. We're in that period now where the market wants to find its next direction. Is the dollar going to go lower or higher?" said Greg Michalowski, chief currency strategist of the New Yorkbased online broker FXDD. On Friday, the dollar was on track to break a five-week losing streak against major currencies. On the week, the dollar index was up 0.6 per cent, the best gain since the week of Sept 12. Michalowski's guess is that the dollar could rally further, a view that is slowly gaining momentum. John Taylor, chairman and chief investment officer at currency hedge fund FX Concepts believes a peak in the euro against the dollar is just around the corner. Taylor told Reuters in an interview that he thinks the euro will most likely hit a top of between $1.43-$1.45 during the first week of November, which is when the Fed, at its Nov. 2-3 policy meeting, may announce quantitative easing. Many analysts say the euro-

zone is still riddled with problems and speculation about exiting quantitative strategies at a time when its recovery is still shaky is premature. Overall, some analysts

Specâ&#x20AC;&#x2122;s further trim bets against USD: CFTC NEW YORK: Currency speculators further reduced bets against the US dollar for a second straight week, although net short positioning was still at extreme levels, data from the Commodity Futures Trading Commission showed on Friday. The value of the dollar's net short position fell to $25.8 billion in the week ended Oct. 19, compared to a net short of $29 billion the previous week, according to Reuters and CFTC calculations. Net short dollars totaled about $30 billion two weeks ago, the biggest bet against the greenback since at least June 2008. The most significant change in the latest week was in the Australian, Canadian and New Zealand dollars, with net longs substantially cut. In the case of the Canadian dollar, specs pared net longs by about 13,000 contracts following a dovish message from the Bank of Canada on Tuesday.-Reuters believe the euro-zone's fiscal austerity measures will in the long run derail growth in the region's peripheral countries. "We are confident in the months ahead that the current optimism will be replaced by a grim reality in the peripheral

countries," wrote Jonathan Clark, FX Concepts president, in a note to investors. Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York, echoed some of Taylor's views. He believes the dollar's decline against the euro is reaching its final stages. Chandler pointed out that the European Central Bank seems determined to normalize monetary policy, with the termination of its long-term repo operations and the planned end of the unlimited nature of the shortterm refi transactions. ECB Council member Juergen Stark had suggested that the ECB might raise rates before it fully exits some of the measures taken during the crisis. As a result, the derivatives market has already factored in a 25 basis-point hike in the first quarter next year. Technical charts also suggest a dollar recovery is underway. FXDD's Michalowski said he is encouraged by dollar/yen's price action, which has moved away from 81.11, the intermediate floor of the last few days. Mid-afternoon in New York, the dollar is up 0.2 per cent at 81.43 yen. The next target would be getting above the week's high near 82 yen and after that, 82.87 yen is in play, the level at which Japan intervened to weaken its currency more than a month ago. In the case of euro/dollar, the five-day and 20-day simple moving averages seemed set to converge in the next few days, which is a bearish signal, Brown Brothers' Chandler said. That technical indicator had accurately captured the market's big moves the last six months, identifying the euro's downtrend from mid-April through mid-June and its recovery through midAugust, including its latest bullish turn in mid-September. -Reuters

Oil up in thin trade on German data, dollar G20 fin mins meet on currencies, dollar seesaws NEW YORK: Oil prices rose 1.4 per cent on Friday on positive German business sentiment data, French strikes and a storm threat as the dollar index seesawed and G20 finance ministers met to consider currency policy. Sources said investors were cautious with a Group of 20 meeting underway in South Korea that looked unlikely to reach a deal on a US-led initiative for a commitment from emerging countries to allow their currencies to rise. US crude for December delivery rose $1.13, or 1.4 per cent, to $81.69 per barrel, as frontmonth crude eked out a 44 cent gain for the week. But the December contract, which moved to the front-month position after the November contract's expiration on Wednesday, actually lost 24

cents on the week. The week's trading was volatile. Monday through Thursday saw oil move up 2.25, down 4.32, up 2.87, and then down 2 per cent. Friday's $80.41-$81.94 range was within Thursday's range, what traders call an "inside day," and total crude trading volume was at 341,083 lots with 25 minutes left in post-settlement trading, putting it on track to be the lowest daily volume since 375,005 lots traded on June 28. "To me, falling volume and narrower trading ranges imply that both buyers and sellers are relatively comfortable with prices where they are. Rising volume and daily trading ranges occur when people are frantic to exit bad positions," said Mike Fitzpatrick, vice president at MF Global in New York. In London on Friday, ICE Brent December crude rose

$1.13 cents, or 1.4 per cent, to settle at $82.96 a barrel. Investors also are waiting for the US Federal Reserve to take up the question of another round of government debt purchases, or quantitative easing, at its policy meeting in November. Investors also eyed a threat from Tropical Storm Richard, which was expected to strengthen into a hurricane this weekend and hit Mexico's Yucatan Peninsula next week. The threat to Mexico's oil-rich Bay of Campeche and US energy facilities in the Gulf of Mexico remained uncertain. Late on Friday, the Commodity Futures Trading Commission released data showing that money managers cut net long crude oil positions held on the New York Mercantile Exchange in the week to last Tuesday. -Reuters

Gold sets first decline in 12 weeks; G20 in focus NEW YORK: Gold steadied on Friday after its first weekly decline in nearly 3 months, with bullion investors keeping an eye on any statements from the G20 meeting. Any currency reaction to the G20 meeting in South Korea this weekend could provide fresh impetus to the gold market. Analysts, however, said it is unlikely for members to reach a deal on a US-led initiative for a commitment from emerging countries to allow their currencies to rise. "I don't think there was an expectation that they will come up with a grand solution because everybody does have a different interest," said Axel Merk, portfolio manager of Palo Alto, Californiabased Merk Mutual Funds. "It's just the very beginning of a currency war. It's going to take a while to brew over. I have no doubt gold will be the beneficiary in the long run," he said. Gold was more than 3 per cent

lower this week, after China's surprised rate hike sent the dollar up 0.7 per cent since Monday. The inverse correlation between gold and the dollar has been the closest in a month, Reuters data showed. Spot gold was up 0.3 per cent at $1,327.65 an ounce at 1925 GMT, having earlier fallen to a 2-1/2 low at $1,315.09. US gold futures for December delivery settled down 50 cents at $1,325.10. A weekly report by the US Commodity Futures Trading Commission showed managed funds cut the net long position in the COMEX futures markets by about 7 per cent this week, as gold prices dropped 3.3 per cent, roughly matched its last significant weekly decline in early July. Gold's 3.3 per cent drop this week roughly matched its last significant weekly decline in early July. Although significant action is not widely anticipated, traders are awaiting a forthcoming

Fed policy meeting that could result in further quantitative easing. Good physical demand from traditional bullion-buying centers such as India is strengthening as prices descend. Dealers in India reported they were continuing to stock up for forthcoming festivals, including the Hindu festival of Diwali, a major gold-buying events, as prices corrected this week. The world's largest goldbacked exchange-traded fund, New York's SPDR Gold Trust, saw a further drop in its holdings on Thursday, however. Gold held by the fund dropped 0.9 tonnes, its 11th session of outflows in 15. Among other precious metals, silver was 0.4 per cent higher at $23.20 an ounce, its biggest weekly loss since early July as it followed gold prices lower. Elsewhere platinum edged up 0.4 per cent at $1,672.92 an ounce, while palladium gained 1.1 per cent to $588.05. -Reuters

4 Saturday, October 23, 2010

A Cultural Sphinx

The Financial Daily International Vol 4, Issue 78

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

wave of religious fervour and those who show their hair power so they started to Islamise and a backlash by secular complain of growing pressure to everything from politics to dress liberals has left some ordi- cover up. styles in order to control the peoHonorary Advisory Board nary Egyptians feeling like The Koran is not clear on a dress ple," he said. S. Muneer Hussain Rizvi Haseeb Khan, FCA strangers in their own country, and code for women but a majority of Sarah Elmeshad, who covers her Khurram Shehzad, CFA Asim Abbas Ashary, CPA civil rights activists warn of a dan- Muslim scholars consider it a reli- face behind a black veil, disagrees. Prof. Zakaria Sajid (KU) Akhtar M. Zaidi, FCA gerous drift into sectarianism. gious obligation for women to "The face veil is good in a socieBanker Hussein Khalil ty such as today's, Zahid Bukhari SVP HBL (retd) Dr. A. Hadi Shahid, FCA says organising something where people are Egypt's legal system is Ismat Sabir Muhammad Arif as simple as an evening out judged according to Head office based on Shariah law yet with friends has turned their looks," said the 111-C, Jami Commercial Street 11, Phase VII, DHA Karachi into a headache. 28-year-old mother of Telephone: 92-21-5311893-6 Fax: 92-21-5388428 the country has a large Christian "These days in Egypt, three, who works in URL: www.thefinancialdaily.com either you go out with peopublic relations. Email Address: editor@thefinancialdaily.com ple who are very strict and minority and the state has sought SEGREGATION Lahore office agree not to go anywhere Last year a group of 24- Peshawar Block, Fortress Stadium, Lahore since independence to cement that serves alcohol, or you face-veiled students Telephone: 92-42-6675595 Fax: 92-42-6664349 go out with others who just national identity by promoting filed a lawsuit against Email Address: editor@thefinancialdaily.com want to get drunk," said Egypt's leading the 27-year-old. Islamic educational an ideal of citizenship that "Moderates are unable to institution for banning transcends religious affiliation. the full veil inside enjoy their lives... We're under pressure to join one female-only classof the two extremes." cover their hair and neck. rooms. Egypt's legal system is based on The full veil is most popular Beyond state institutions, segraShariah law yet the country has a among poor Egyptians, for whom gation has appeared, with womenlarge Christian minority and the respectability is a must in their only taxis and women-only beachstate has sought since independence to cement national identity by Some of the experts are of the opinion that promoting an ideal of citizenship there is a need to bring radical changes in the that transcends religious affiliation. mindset of Pakistanis to make them a coherent Religious observance was seen nation and the country financially strong. The widely as a matter of personal conscience until the 1980s, when habit of living beyond means and borrowing to growing numbers of Egyptians pay off the outstanding debt has already plunged started working in Saudi Arabia the country into serious debt crisis. Weaker insti- and began promoting the strict tutions are the outcome of giving priority to per- Islamic ways back home. When thanked, most Egyptians sonal interest over the national objective. used to say: "You are welcome". However, nothing could be achieved without This has been replaced by the more search for a husband or job. es growing in popularity. pious phrase: "May God reward Among wealthier Egyptians it is Fully-veiled women arriving at ushering change in the national psyche. a subject of bitter dispute -- advo- the expensive Marina resort on The first step is to come up with Education you with goodness". women have stopped shak- cates see it as an antidote to the Egypt's Mediterranean coast swap Policy capable of producing the learned ones ingSome men's hands, saying it is for- West's obsession with a woman's their black robes for bikinis and rather than the degree holders. This policy has bidden. Many Muslim scholars say looks. Opponents see it as a sym- take part in women-only dancing to be prepared in the light of clearly defined greetings are set by society, not by bol of male tyranny. and beauty contests. "It (the face veil) is a sign of Women-only beaches "are the national objectives and also prioritizing the Islam. In the 1970s it was rare for decline and the enslavement of only places I can go to do what I same. This has to supported with Egyptian women to cover their women," said Bilal Alaa, a 21- want, to be free, to dance and have appropriate curriculum and hiring the right hair. Today it has become the year-old university student. fun, and that also goes with my type of faculty. The focus has to be shifted norm. Fully veiled women in flow"Islamists got worried that mod- religious beliefs," said Khadiga from imparting aimless education to vocation- ing black robes are a common sight ernisation would take away their Samir, a 21-year-old administrative

â&#x20AC;&#x153;

Changing the mindset

al training for producing skilled workforce. After understanding the requirement of graduates in various disciplines, only the needed number of graduates should be produced --in a particular discipline-- to avoid unemployment and sense of deprivation. While preparing the education policy it must be made sure that enough skilled people are made available to bring change in agriculture, industries and services sector. Pakistan suffers from low production and productivity in agriculture. This can be overcome by cultivating seeds giving higher yield, applying right dosage of nutrients and better crop management. Educating the farmers is not possible without training the trainers. Pakistan's industrial sector is mostly confined producing textiles, sugar, refining, and a few other basic raw materials. However, most of these industries are inefficient, wastages are high and sponsors have failed in undertaking BMR. Most of the units are based on obsolete technologies and machineries. The result is obvious as local manufacturers can't compete in the global markets. Following the policy of import substitution rather than exploiting the comparative advantage has led to Pakistan losing its market share in the global market of textiles and clothing, becoming net importer of sugar and fertiliser and remaining highly dependent on import of petroleum products. Services sector has emerged better because of the linkage with the global leaders. Pakistani banks are often regarded conservative but are inline with the global players due to following Basel rules. However, sickness of industries is often reflective in the banking sector. If textiles contributed the largest percentage of delinquencies in the past, passing of inter corporate debt of the energy sector toxic for the financial sector. Many of the ills of Pakistan's economy are because of myopic vision of the policymakers, who may have high-end degrees but seem to be non-visionary. They often waste time and energy maintaining status quo rather than bringing a positive change. They are afraid of accepting the challenge and try to kick the problems in long grass. Many of the countries have gone ahead simply because they invested in education and brought a change in the mindset of their people. It is still not too late to start. The choice is ours.

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.

Egypt, a staunch western ally, has been wary of extremist religious groups since the assassination of President Anwar Sadat in 1981 by Islamist militants. The government fought a low-level Islamist insurgency in the 90s.

A dubious role, isnâ&#x20AC;&#x2122;t it?

assistant who covers her hair in public. "The mixed places are fun, but I don't feel right acting the same way there." A group called the Egypt Initiative For Personal Rights launched an anti-sectarian campaign this month. Organisers said they feared "rising social divisions, sectarian tension and a mindset that divides the country into an 'us' and 'them'." Over 30 per cent of Egypt's 78 million people are illiterate and 20 per cent live on less than one dollar a day, according to the United Nations. Lawyer and rights activist Negad al-Borai said the rise of social conservatism was due to poor living conditions, sub-standard education and bad transport infrastructure that fostered a ghetto mentality. "The worst thing this regime did was to steal the soul of people and wreak intellectual and cultural damage," Borai said. Egypt, a staunch western ally, has been wary of extremist religious groups since the assassination of President Anwar Sadat in 1981 by Islamist militants. The government fought a low-level Islamist insurgency in the 90s. A state of emergency in force during all of President Hosni Mubarak's 29-year rule gives the state sweeping powers to quash dissent and rein in groups such as the Muslim Brotherhood, Egypt's biggest opposition movement. Yet analysts say the government is not putting much effort into turning the conservative tide because it makes use of religion itself to seek legitimacy. "The ruling power uses Islamic mottos to attract Egyptians and influence them, given the lack of a democratic system," said political analyst Nabil Abdel Fattah.Reuters

Results withheld!

University of Karachi is one of the largest varsities in Pakistan. Almost 25,000 students are studying here. Strength of such huge magnitude demands organised administration but here the situation is quite different from what it is supposed to be. Almost 100 students of the faculty of science having completed their researches of PhD and MS are yet to receive degrees. Specifically speaking, in 2008, two courses of research methodology were taught, tested, and marked, but the results were not sent the semester cell, thus Reports highlighting a new dubious role of the the degrees were never issued to the students. The students are still waiting for their degrees, though they Indian army are doing rounds. They strengthen have completed final researches as well. Dean of faculty of sciences is requested to look into the matter and the perspective that there are no limits when it take steps to resolve it. comes to personal gains. It has happened before Safeena Yaseen, Dept of Mass Communication, University Of Karachi during Kargil when senior officers of Indian army showed their own soldiers dead by using tomato ketchup as blood. They got awards and rewards, but after the real story leaked there was only embarrassment and loss of credibility. Now, the report reveals that Indian army men are involved in placing bombs and explosive material at different places in Indian Held Kashmir. Then by leaking information themselves they get share in the monetary rewards. The blame of such acts is placed on the innocent According to a report in the Oct 22 newspapers, David Headley, a US citizen, was sent on a secret mission to Kashmiris. They are arrested, humiliated, tortured and brutally murdered. What an extraordi- South Asia by the American intelligence agencies to join the Lashkar-e-Taiba and other such militant organisations, a fact that the US federal officials have acknowledged. In court papers submitted by the FBI, US federal nary example has been set by the army of a authorities have said that they had hoped to reach top al Qaeda leaders through him but Headley slipped out of US country who has been recently given the status hands to become a terrorist himself. of temporary membership in rotation at UNSC. Somehow, the story does not sound plausible as the account of Headley becoming a rogue should have been Is anyone going to raise a voice against the immediately reported to the concerned local authorities. But no such thing occurred. Headley carried on with his detention and torture on allegations of storing jaunts from India to Pakistan and to the US in complete confidence, befriending many influential people on the and burying explosives? After such exposures way and the CIA and FBI kept mute. Remarkable! published and discussed by Indian media is According to reports issued by the Indians, Headley made eight trips to India and in each trip he set up a logisthere anyone who will try to stop the brutalities tic base in Mumbai and opened up various accounts. Headley had orchestrated and organised and well structured of Indian army on those who are only asking plan with a clear strategy for his escape after the deed was done. Obviously not a very Taliban-like approach and struggling for their right of freedom towards terrorism! Seems more of a Western style to the bystanders. With the deed of inflicting colossal damage to the Indians, shattering Pakistan's reputation as a peaceful nation acknowledged by the UN. and dealing a blow to the trust that had built between the two neighbors, Headley kept his composure and was busy Anwar Parween, Islamabad devising yet other such horrible plans of destruction. Could a mere individual be so invincible and unshakable? Who offered him a price greater than what a superpower was capable of, to defy the US dictates and change masters? Were the new masters Pakistanis? If so then what did Pakistan gain out of the situation? What possible benefit could ISI have extracted out of it? A maligned reputation! The aggravated security conditions profit none in the region, but only the external players, like US, which can gain big time from the chaos and turmoil that South Asia has been subjected to, who legitimises their presence in the region by fueling the turbulence. Marya Mufti, Lahore

David Headley Remains an Enigma

Media must watch its words

In times when Pakistan is facing one of the most challenging situation in terms of economy, stability, and politics, it is very disturbing to see the fourth pillar of state playing a totally irresponsible role. Few days back the news which flashed over the screens of a private news channel spurred anarchy-like situation. What is even worst is that news was not even authentic. The impact was so huge that it forced the judiciary to call for an emergency meeting and later the country's premier was forced to gives clarification that all such news was just a rumour. This kind of a situation brings a bad name to the media and contributes negatively to the image of the broadcasters. News channels should never forget that being authentic and true is their utmost responsibility. Rameez Ahmed, University of Karachi

Hardships for Karachiites Target killings is the most discussed issue now a days, if not for the killings then for the hardships Karachiites face due to it. Closed petrol pumps, no public transport, non-availability of basic utilities and the complete abandoning of city due to the 'mourning days' being observed, are the sufferings which people living in Karachi have to face almost once a week, since the rate of killing is high. Unfortunately government is making no serious effort to fix such big issues. Not to forget the electricity, water, gas, flour crises. During the past few months in particular, nothing has been on the show but crises one after the other and government depicting its consistency by not handling even a single issue properly. To mention one, gas crises has been so severe that people felt like living in stone-ages. It is a matter of great shame that in this advanced technological world we still are forced to live without the basic facilities. And to add more to the miseries, these hardships are for the poor areas of the city. Urooj Fatima, Karachi

Monday, October 25, 2010

Coal India IPO covered 15 times on last day

AIA IPO poised to be world's third-biggest IPO

Weekly Review

Khi stocks bull up last wk, gain 2pc

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

10431.84 10652.48 220.64 2.12 608.21

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

3244.41 3321.49 77.08 2.38 29.43

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

2668.49 2700.87 32.38 1.21 0.94

Major Gainers

Symbol RMPL BATA FZTM SRVI COLG

Change

1550.00 514.95 376.88 231.57 782.45

180.00 60.90 56.88 46.24 42.45

Nawaz Ali

Major Losers

Symbol APL UPFL WYETH MUREB THALL

Change

296.07 1000.00 801.00 74.40 91.12

-68.44 -30.00 -29.06 -20.58 -19.39

Top 5 Volume Leaders

Symbol

Close Vol (mn)

LOTPTA JSCL AMTEX DGKC FFBL

10.25 10.25 7.49 27.92 30.43

69.29 45.43 34.39 28.13 18.03

Active Issues Plus Minus Unchanged

237 175 17

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

NEW YORK: Nicole Sexton, Marlene Sexton, Chele Chiavacci and Michelle Herbet pose for a photo after the closing bell at the New York Stock Exchange.-Reuters

Wall Street weekly outlook

Stocks may face wild swings, earnings blitz NEW YORK: US stocks could see big swings to the downside this week on any remotely "bad" news since volatility indexes are at levels considered too low. Investors also will face a blizzard of earnings, which many analysts believe will continue to support the rally that began early this month. But any disappointments in either earnings or outlooks could, of course, trigger a sharp sell-off. What's more, the market is likely to continue to garner support from investors' hopes that the Federal Reserve will take more steps to stimulate the economy, in what's known as "quantitative easing" or "QE2." The Fed is expected to unveil its initial commitment under QE2 at its Nov. 2-3 meeting. The Chicago Board of Options Exchange (CBOE) Volatility Index, or VIX, a gauge widely used to measure investors' anxiety levels, fell 2.54 per cent on Friday to close at 18.78, its lowest level since April. The VIX, which rose to near 50 in May, has been around or under 20 for the past two weeks. Options traders note that there is a clear sign of extreme complacency in the VIX and that it is making the market more vulnerable than before. "The 'market volatility' index will see a lot more volatility (this week) since it is at such low levels now," said Steve Claussen, chief investment strategist at online brokerage OptionHouse.com. The iPath S&P 500 VIX Short Term Futures exchangetraded note, or ETN is also at a new 52-week low of 12.83. The ETN offers directional exposure to volatility and is based off of the front two-

month VIX futures. "If you look at VIX futures, investors seem to be always preparing for something to trigger the volatility to spike up again, yet there is nothing major in the immediate future that justifies that," Claussen said. The VIX futures were traded at around 21 for November and 24 for December, but going into 2011, they were showing an increase of 40 per cent, trading above 26. The VIX, widely known as Wall Street's fear gauge, is a 30-day risk forecast of stock market volatility. The index typically has an inverse relationship with the S&P benchmark as it tracks option prices that investors are willing to pay as protection on the underlying stocks. Earlier last week, the VIX instantly shot up nearly 12 per cent when stocks suffered their steepest one-day decline since August after a surprising rate hike from China. Earnings will remain the center of attention this week. Many analysts predict that earnings will continue to support the market rally that kicked off October. If more companies report strong results, that could bolster sentiment, along with hopes for more Fed easing. In the last week of October, 177 S&P 500 companies are due to report their balance sheets, of which seven are Dow components. Among them are energy giants Exxon and Chevron and technology giant Microsoft. S&P 500 earnings are expected to increase 28 per cent for the third quarter from a year ago, up from a growth estimate of 24 per cent last week, according to Thomson Reuters

data. "The earnings are expected to be good this week as well ... we are not expecting any bad news out of there," said Peter Cardillo, chief market economist at Avalon Partners, in New York. But Cardillo said that negative news from economic data could spark market volatility, especially as it would come just a week before the Nov. 2-3 meeting of the Federal Open Market Committee, or FOMC, and in the week preceding the Nov. 2nd mid-term elections. Major economic data for the coming week includes existing home sales, durable goods orders and third-quarter GDP. Elliot Spar, options market strategist at Stifel Nicolaus, also said a sell-off could begin as early as this week in anticipation of the Fed meeting and the mid-term elections. "For those that are waiting for the 'sell on the news' event on Nov. 3 when the Federal Reserve Open Market Committee concludes its meeting to discuss the prospect of another round of quantitative easing, I believe that the selloff in the market will start during the week of Oct. 25." All three major indexes capped a third straight week of gains. For the week, the Dow and the S&P 500 each rose 0.6 per cent while the Nasdaq gained 0.4 per cent. From the technical viewpoint, a key support for the S&P 500 was seen at the 10day moving average, which was at 1,175 as of Friday. "A clear one-day break of the 10-day moving average with a follow-through to the downside the next day could be the catalyst for a meaningful pullback in the market," Spar said. -Reuters

KARACHI: Karachi Stock Exchange (KSE) remained in the grip of bulls last week ending above 10,600 points levels after 6 months as it gained more than 2 per cent in a result-based rally. The benchmark KSE 100index increased by 220 points (2.12 per cent) to close at 10,652 points, KSE 30-Index jumped 155 points (1.54 per cent) to close at 10,250 points and KSE All Share Index grew by 147 points (2.03 per cent) to close at 7,414 points. Saeed Khalid, analyst at Invest Cap said that the KSE100 index showed an improved activity, despite Karachi tension. The impact of the uncertainties was offset by the commencement of result season and positive news flow from the political arena. Better than expected corporate earnings and a compromise between judiciary and government on the issue of 18th Amendment, also strengthened investors' confidence, said he, adding, towards the end of the week, further positivity was injected by favorable outcome of Pak-US dialogue. Volumes remained impressive throughout the week as above 608 million shares traded during the week which is 158 million more as compared to a turnover of 450 million shares a week earlier. Average daily turnover stood at 121.6 million shares - highest in 25 weeks. It was 31.6 million more than an average turnover of 90 mil-

lion shares the previous week. The week began on a bullish note on Monday due to buying on hopes of healthy corporate results which allowed the index to close the day with a gain of 52 points. However the tense law and order situation in the city kept the investors worried. Some profit taking was observed on Tuesday due to which index ended with a minor loss of 19 points. The bears couldn't hold the floor, as buying activities revived on good results and improved political situation after Supreme Court's decision on 18th amendment giving a reason to the market to take a rebound. That's why the market remained bullish during the last three days. Moreover, Pakistan-US strategic dialogue success too played vital role in boosting the investor sentiments. The index closed 21, 72, and 93 points up respectively during the last three days where at one moment during intra-day trading on Friday it touched its highest level of the week of 10,709 points. Rabia Tariq, analyst at JS Global Capital said that SC's decision on the 18th Amendment and positive economic data too improved the market's mood. Foreign investors remained on the buying side showing a net-purchase of $2.8 million last week, NCCPL data showed. Out of total 429 active issues; 237 advanced and 175 declined while 17 issues remained unchanged.

Gulf stocks mkt

Abu Dhabi surge led by Etisalat, Waha DUBAI: Abu Dhabi shares rose to the highest since April as Waha Capital PJSC said third-quarter profit jumped and after global markets gained last week on speculation the Federal Reserve will help stimulate the economy. Waha Capital, an Abu Dhabibased leasing company, increased 2.5 per cent and Emirates Telecommunications Corp., the biggest phone company in the United Arab Emirates, gained for a second day. The ADX General Index advanced 0.5 per cent to 2,821.01, the highest close since April 25. "Gains in US and European markets last week helped boost investor confidence," said Ziad Dabbas, a financial analyst at National Bank of Abu Dhabi PJSC, the UAE.'s secondlargest lender by assets. Crude oil for December delivery jumped 1.4 per cent to settle at $81.69 a barrel on the New York Mercantile Exchange on Oct. 22. The six nations of the Gulf Cooperation Council, including the UAE and Saudi Arabia, supply about a fifth of the world's oil. Waha climbed to 81 fils. Third-quarter profit soared to 37 million dirhams ($10 million) from 2 million dirhams in the year-earlier period. Etisalat, the company with the highest weighting in Abu Dhabi's benchmark index, rose 0.4 per cent to 11.75 dirhams. Chairman Mohammed Omran said the company is confident in obtaining financing to purchase a 46 per cent stake in Kuwait's biggest phone company Mobile Telecommunications Co. and has appointed two financial advisers. Zain, as Mobile Telecommunications is known, gained 1.5 per cent to close at 1,400 fils in Kuwait. Egypt's benchmark index climbed 0.3 per cent and Dubai's DFM General Index advanced 0.2 per cent. Bahrain's gauge gained 0.3 per cent. Qatar's QE Index advanced 0.6 per cent and Kuwait's gauge gained 0.3 per cent, while Oman's MSM30 Index rose less than 0.1 per cent. Saudi Arabia's Tadawul All Share Index added 0.3 per cent. -Agencies

Dhiyan

GREEN SHEEN SEEN Naeem Rafi, CEO Rafi Securities Bullish activities would sustain in the market over easing tension between judiciary and government, positive Pakistan-US strategic dialogue, and continued buying by the foreign investors. Investors are recommended to do trading in cement stocks. Political stability in the country and introduction of Margin Trading System (MTS) would, as has repeatedly been said, would give market a lasting support. Market would be in the grips of bulls today.

Mohammad Imran, AVP Research Arif Habib Limited Results rally would continue in the market during the next couple of weeks where the benchmark index is likely to touch 11,000 levels. E&P and banking sectors are expected to announce good results. Investors should remain invested in the market and can take positions in banking and textile sectors. Positive outcome of the meetings with IMF and launch of Margin Trading System (MTS) would trigger the market. Positive activities may persist today.

Monday, October 25, 2010

Market Volume

608,206,540

Value

18,015,531,362

Trades

317,137

Paid up Cap(mn)

Advanced Declined Unchanged Total

237 175 17 429

Current High Low Change

10,652.48 10,709.28 10,431.84 h220.64

691

Mari Gas Company National Refinery XD

Open

4.55 364.51

High

High Low 1,358.29 1,322.82 Total cos Defaulter cos P/BV (x) ROE (%) 4.17 37.01 Low

Close Chg

2009 Div BR (%) (%)

2010 Div BR (%) (%)

106.00 32.17 100B

AUTOMOBILE AND PARTS

800

212.50 203.00 210.18 -16.21

669469

230.84

183.25

125

200

Performance of SR Automobile and Parts Index

20B

2365 350 1715

7.69 186.37 6.17 248.88 -

77.02

4.50 273.06

Shell Gas LPG

226 17.28

Shell Pakistan XD

685

31.36

9.67 194.25

244.30 231.01 243.22 -5.66 85.90

76.00

76.34 -0.68

274.40 262.00 266.00 -7.06 39.99

31.95

38.37

7.01

197.00 185.00 188.49 -5.76

6024145 251.24

213.17

180

255

85.90

48.26

2406884 289.45

297430

233.10

59034

39.99

27.32

166594

244.00

185.00

330

CHEMICALS Performance of SR Chemicals Index Open High Low 1,179.27 1,209.20 1,175.08 Turnover Total cos Defaulter cos 107,650,545 P/E (x) P/BV (x) ROE (%) 7.46 2.61 35.00 Paid up Cap(mn)

3924

Open

High

Low

Close Chg

Close 1,196.46 Listed cap 52,251.88 mn Payout (%) 48.81

Change % Change 17.19 1.46 Market cap 200-Day High 268,364.11 mn Div Yield (%) 200-Day Low 6.54 -

Last 60 days High Low

Volume

2009 Div BR (%) (%)

2010 Div BR (%) (%)

9.73

22.26

23.50

21.35

22.00 -0.26

18088

26.49

21.15

68 89.58

10.64

10.75

9.53

10.75 0.11

9481

16.78

9.53

10R

250 10.15

76.00

79.81

74.00

79.81 3.81

66.90

273

5.64 161.01

163.00 159.00 160.25 -0.76

61761

174.00

154.27

125

Dawood Hercules

1203

7.89 169.01

176.00 167.00 171.00 1.99

18023

185.88

155.38

10B

Dewan Salman

3663

1.46

1.70

1.40

1.56 0.10

Dynea Pak XD

4.33

11.84

12.99

10.21

11.60 -0.24

3277 22000 6785

9.04 177.14 -

10.61

7.43 108.15

178.88 174.65 176.23 -0.91 10.64

9.42

9.91 -0.70

109.70 107.85 109.29 1.14

80729

82.50

2191305

2.21

1.28

13.00

10.21

4224227 191.80

165.60

13131765 12.46

9.02

7877

1753070 113.00

6010B 40R -

102.96 131.5

10B

5.74

29.43

30.88

29.51

30.43 1.00

18034796 30.88

26.59

17.5

384

4.09

41.80

44.60

39.99

43.79 1.99

9885

48.30

36.80

3487998 130.00

109.50

1388 15142 74

7.65 121.50 3.56

9.62

130.00 121.06 128.37 6.87 10.49

9.49

10.25 0.63

69292303 10.49

6.75

1.45

2.50

1.30

1.70 0.25

112340

3.24

1.06

1106 79.50

1.48

1.64

1.39

1.59 0.11

793060

1.74

1.16

2.97

2.50

2.50 0.07

Shaffi Chemical

120

1.88

214

8.93 121.40

Sitara Peroxide

551 12.08 90

4.52

2.43

124.50 104.56 108.99-12.41

8758 143646

3.80

2.00

128.01

104.56

9.37

11.11

9.31

11.11 1.74

1589559

11.11

7.67

43.00

43.75

37.00

38.19 -4.81

32068

48.00

37.00

FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,149.29 Turnover 794,901 P/E (x) 5.79

High Low 1,162.49 1,109.29 Total cos Defaulter cos P/BV (x) ROE (%) 0.43 7.47

Close 1,147.10 Listed cap 1,186.83 mn Payout (%) 25.28

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Century Paper 707 Pak Paper ProductXDXB 50 Security Paper 411

4.49 4.73

18.88 39.10 40.00

18.64 43.95 41.50

17.50 38.75 39.00

18.52 -0.36 43.15 4.05 40.01 0.01

755834 18914 20153

Change % Change -2.19 -0.19 Market cap 200-Day High 3,178.97 mn Div Yield (%) 200-Day Low 4.37 -

Last 60 days High Low 22.70 62.85 50.40

17.31 38.61 38.10

2009 Div BR (%) (%)

2010 Div BR (%) (%)

- 425R 20 50 -

25 33.33B 50 -

INDUSTRIAL METALS AND MINING

Company

High Low 952.53 904.25 Total cos Defaulter cos P/BV (x) ROE (%) 0.97 33.10

Close 931.08 Listed cap 3,596.11 mn Payout (%) 30.91

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

565

3.40

24.97

25.98

24.60

25.07 0.10

200337

Crescent Steel

2009 Div BR (%) (%)

23.75

675

2.27

3.39

2.22

3.16 0.89

3.39

1.65

555

5.52

12.59

13.70

12.51

12.87 0.28

72387

16.75

12.25

30B

1199

4.59

45.99

47.89

45.60

47.12 1.13

738828

70.71

45.60

20B

CONSTRUCTION AND MATERIALS Performance of SR Construction and Materials Index

Company

Paid up Cap(mn)

Open

High

High Low 1,008.57 937.48 Total cos Defaulter cos P/BV (x) ROE (%) 0.50 7.10 Low

Close 997.78 Listed cap 54,792.74 mn Payout (%) 19.04

Close Chg

Volume

Change % Change 47.62 5.01 Market cap 200-Day High 71,857.29 mn Div Yield (%) 200-Day Low 2.69 -

Last 60 days High Low

2009 Div BR (%) (%)

2010 Div BR (%) (%)

Al-Abbas Cement

1828

3.10

3.40

2.90

3.30 0.20

217615

4.20

2.80

Attock Cement XD

866

5.06

63.44

65.78

60.30

63.51 0.07

1054756

71.90

60.30

20B

- 100R

Berger Paints

182

15.01

17.50

14.55

17.50 2.49

46340

20.00

14.01

Cherat Cement

956

10.70

11.25

10.00

11.18 0.48

42170

12.50

8.90

Dadabhoy Cement

982 12.54

1.56

1.70

1.31

1.63 0.07

85052

2.74

1.30

Dandot Cement

948

1.88

2.75

1.11

2.00 0.12

512087

3.90

1.02

Dewan Cement

3574

1.55

1.70

1.40

1.58 0.03

711862

2.20

1.30

DG Khan Cement Ltd

3651 38.78

25.70

28.05

25.52

27.92 2.22

28127444 28.74

23.02

20R

- 122R

Fauji Cement

6933 12.73

4.99

5.19

4.90

5.09 0.10

2690793

5.50

4.50

Flying Cement Ltd

1760

1.93

2.06

1.90

2.02 0.09

236925

2.30

1.74

Haydery Const

0.88

0.90

0.63

0.68 -0.20

90437

2.00

0.25

Kohat Cement

1288

5.90

6.50

5.85

6.39 0.49

448750

6.80

5.50

Lucky Cement XD

3234

Maple Leaf Cement Mustehkam Cement Pioneer Cement Thatta Cement

6.58

73.29

73.43

69.20

73.26 -0.03

4668416

5261

2.84

3.15

2.80

3.09 0.25

417

12.95

10.95

10.95 -2.00

2228

8.02

8.58

7.90

8.11 0.09

297028

7982210.00

21.22

22.24

19.48

22.10 0.88

29325

74.00

1232334 7321

62.60

3.60

2.51

12.95

10.95

8.58

6.80

22.24

17.74

40 -

- 177R

50R

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 900.23 Turnover 594,269 P/E (x) 2.55 Company

Paid up Cap(mn)

Open

Cherat PapersackXDXB 115 3.98 34.65 ECOPACK Ltd 230 2.29 Ghani GlassXDXB 1067 4.34 50.05 MACPAC Films 389 2.51 Merit Pack 47 - 16.00 Packages Ltd 844 55.64 106.31

High

High Low 913.46 874.97 Total cos Defaulter cos P/BV (x) ROE (%) 1.12 43.91 Low

Close Chg

41.70 34.00 41.70 2.50 2.10 2.36 50.01 45.75 47.25 3.24 2.10 2.63 17.06 15.10 17.06 110.00 104.50 108.50

7.05 0.07 -2.80 0.12 1.06 2.19

Close 901.26 Listed cap 3,043.31 mn Payout (%) 15.55

Volume 105055 58878 128687 12126 15436 241590

Change % Change 1.03 0.11 Market cap 200-Day High 33,463.67 mn Div Yield (%) 200-Day Low 6.10 -

Last 60 days High Low 51.05 2.86 61.99 4.50 20.70 123.00

34.00 1.70 45.75 1.60 11.81 98.00

2009 Div BR (%) (%) 30 32.5

10B -

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

Company

Paid up Cap(mn)

Open

High

Low

Close Chg

25B 10B -

Company AL-Noor Sugar Chashma Sugar Faran Sugar Habib Sugar Habib-ADM Ltd XD J D W Sugar Mehran Sugar Mirpurkhas Sugar National Foods XD Noon Sugar Punjab Oil XD Quice Food Shahmurad Sugar Shak(RCPf)8.5 Perc Shakarganj Mills Tandlianwala

63.01 131.00 92.00 1.16 21.71 4.03 3.55 9.65 212.29 69.25 19.50

2009 Div BR (%) (%)

2010 Div BR (%) (%)

40 100 80 100 5 -

90 100 20 150 10

20B 30B 20B

20B 20B

Last 60 days High Low

2009 Div BR (%) (%)

2010 Div BR (%) (%)

212.00 200.60 205.67 -5.04 49.50 45.00 48.75 3.45 0.55 0.45 0.54 0.04

86786 28681 7501

227.45 51.99 1.00

200.26 36.10 0.36

400 -

20B -

150 25 -

10B -

Ghandhara Ind Millat TractorsXDXB

2.13 13.20 6.19 480.90

14.80 13.00 13.54 484.90 443.00 482.98

205356 19.50 1082392 597.90

11.29 390.00

450

25B

650

25B

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

67.65

Total Assets (Rs in mn)

12,372.62

MA (10-day)

14.63

Total Equity (Rs in mn)

6,785.66

MA (100-day)

15.98

Revenue (Rs in mn)

2,170.95

MA (200-day)

20.34

Interest Expense

1st Support

15.25

Profit after Taxation

2nd Support

14.75

EPS 09 (Rs)

1st Resistance

16.10

Book value / share (Rs)

2nd Resistance

16.45

PE 10 E (x)

Pivot

15.60

PBV (x)

0.00 269.91 0.90 22.62 0.70

PAKRI closed up 1.28 at 15.75. Volume was 402 per cent above average (trending) and Bollinger Bands were 5 per cent wider than normal. The company's loss after taxation stood at Rs86.639 million which translates into a Loss Per Share of Rs0.29 for the half year of current calendar year (1HCY10). PAKRI is currently 22.6 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 very strong flows of volume into PAKRI (bullish). Trend forecasting oscillators are currently bullish on PAKRI.

Telecard Limited

Paid up Cap(mn)

Open

High

High Low 1,525.57 1,461.18 Total cos Defaulter cos P/BV (x) ROE (%) 9.22 30.30 Low

Close Chg

Close 1,482.95 Listed cap 11,335.33 mn Payout (%) 30.57

Change % Change 3.49 0.24 Market cap 200-Day High 191,181.33 mn Div Yield (%) 200-Day Low 1.00 -

Last 60 days High Low

Volume

186 287 217 600 200 490 143 70 414 165 38 107 211 346 695 1177

4.27 0.73 3.19 6.19 11.23 2.49 3.19 5.99 20.34 2.70 16.52 263.64

42.00 8.80 19.56 30.74 12.68 71.99 55.22 59.17 40.66 12.22 37.48 3.00 11.15 3.80 4.21 31.90

42.00 9.89 20.25 30.70 13.00 74.45 57.89 60.00 43.00 12.99 38.00 2.75 11.44 3.80 6.40 32.47

41.00 8.80 19.05 29.50 11.90 70.00 54.01 54.50 39.01 12.00 35.50 2.35 11.00 3.25 4.15 29.00

42.00 9.07 19.75 30.00 12.13 74.43 57.00 57.00 42.51 12.98 35.50 2.35 11.40 3.25 5.33 29.00

0.00 0.27 0.19 -0.74 -0.55 2.44 1.78 -2.17 1.85 0.76 -1.98 -0.65 0.25 -0.55 1.12 -2.90

9428 7901 102212 261258 23912 25816 16142 22087 14136 25958 65500 25000 6300 1600000 38856 14364

46.89 11.40 20.25 32.25 16.98 74.45 57.89 65.00 65.29 12.99 38.95 3.40 11.90 9.42 6.40 35.50

39.25 8.00 15.90 24.73 11.90 60.10 48.50 54.50 39.01 10.00 32.80 1.60 7.40 2.50 3.02 22.45

2009 Div BR (%) (%) 40 17.5 35 40 40 35 25 50 15 15 -

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

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

Fundamental Highlights As on Jun 30, 2009

Technical Analysis RSI (14-day)

64.02

Total Assets (Rs in mn)

9,719.17

MA (10-day)

2.40

Total Equity (Rs in mn)

2,838.82

MA (100-day)

2.59

Revenue (Rs in mn)

3,791.47

MA (200-day)

2.91

Interest Expense

1st Support

2.47

Profit after Taxation

44.07

2nd Support

2.42

EPS 09 (Rs)

0.147

1st Resistance

2.60

Book value / share (Rs)

2nd Resistance

2.68

PE 10 E (x)

1.09

Pivot

2.55

PBV (x)

0.27

494.14

9.46

TELE closed up 0.06 at 2.53. Volume was 23 per cent above average and Bollinger Bands were 13 per cent wider than normal. The company's profit after taxation stood at Rs698.462 million which translates into an Earning Per Share of Rs2.33 for the year ended FY10. TELE is currently 12.8 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 very strong flows of volume into TELE (bullish). Trend forecasting oscillators are currently bullish on TELE.

Karachi Electric Supply Corp Ltd

HOUSEHOLD GOODS Performance of SR Household Goods Index Open 1,136.75 Turnover 2,628,407 P/E (x) 2.74 Company

High Low 1,163.97 1,130.28 Total cos Defaulter cos P/BV (x) ROE (%) 0.29 10.64

Paid up Cap(mn)

Open

High

Low

Close Chg

1174 231

3.08 2.78

13.52 17.03

14.58 17.75

13.51 16.50

14.41 0.89 17.08 0.05

Close 1,152.43 Listed cap 3,763.71 mn Payout (%) 6.27

Volume

Change % Change 15.68 1.38 Market cap 200-Day High 5,475.94 mn Div Yield (%) 200-Day Low 2.29 -

Last 60 days High Low

2498285 15.95 118509 19.12

12.17 14.50

2009 Div BR (%) (%) -

10B -

2010 Div BR (%) (%) 17.5

10B -

PERSONAL GOODS Performance of SR Personal Goods Index Open 917.84 Turnover 92,327,949 P/E (x) 6.14 Company

Paid up Cap(mn)

Open

(Colony) Thal Ali Asghar Textile Amtex Limited XD Artistic Denim XD Azam Textile Azgard Nine Bannu Woolen XD Bata (Pak) Chenab Limited Colony Mills Ltd D S Ind Ltd Data Textile Dawood Lawrencepur Dewan Farooque Spin. Dewan Mushtaq Textile Gadoon Textile XD Gillette Pakistan Gulistan SpinningSPOT Gulshan SpinningSPOT

56 1.50 222 1.00 2415 2.00 10.71 840 4.90 22.86 133 0.52 3.09 4493 284.25 10.19 76 0.97 13.60 76 5.09 454.05 1150 3.26 2442 2.89 2.80 600 1.65 99 0.16 514 47.06 39.85 600 2.54 3.97 34 0.34 2.51 234 1.05 45.51 192 50.27 61.70 146 1.41 6.35 185 1.76 9.10 Hira Textile Mills Ltd.SPOT 716 1.38 4.25 Ibrahim Fibres XD 3105 3.39 38.16 ICC Textile 100 0.98 Ideal Spinning 99 0.63 3.40 Idrees TextileSPOT 180 2.37 4.25 Int Knitwear XD 32 5.03 10.20 Ishaq Textile XD 97 1.05 4.94 Kohat Textile 208 1.71 1.49 Kohinoor Ind 303 1.42 Kohinoor Spinning XD 1300 1.08 1.35 Kohinoor Textile 1455 2.83 5.38 Maqbool Textile XD 168 1.72 11.25 Masood TextileSPOT 600 1.08 19.50 Mian Textile 221 0.60 Nagina Cotton 187 1.17 17.45 Nishat (Chunian)SPOT 1586 2.63 19.11 Nishat Mills XD 3516 6.08 50.86 Pak Synthetic 560 6.67 5.25 Paramount Spin.SPOT 158 1.50 9.88 Prosperity XD 185 1.82 17.85 Ravi Textile 250 4.74 1.79 Redco Textile 213 4.67 0.70 Reliance Weaving 308 0.73 11.15 Rupali Poly XD 341 4.21 34.90 Salfi Textile XD 33 0.13 26.23 Sally TextileSPOT 88 0.33 5.35 Salman Noman 40 5.00 2.26 Samin Textile XR 134 7.99 Sargoda Spinning XD 312 0.47 1.96 Service Ind 120 5.96 185.33 Shahpur Textile 140 0.97 0.83 Shahtaj Textile XD 97 - 20.77 Shams Textile 86 1.25 17.50 Sunrays Textile 69 0.97 34.95 Suraj Cotton XD 180 1.07 35.00 Tata Textile XD 173 0.19 18.97 Thal LimitedXDXB 307 3.89 110.51 Treet Corp 418 9.75 38.27 Yousuf Weaving 400 6.47 1.10 ZahidJee Textile 341 1.75 3.25 Zephyr Textile Ltd 594 3.25

High

High Low 941.28 909.30 Total cos Defaulter cos P/BV (x) ROE (%) 0.53 8.64 Low

Close Chg

1.99 0.70 0.70 -0.80 1.45 0.75 0.75 -0.25 9.71 6.71 7.49 -3.22 21.00 19.50 19.51 -3.35 3.10 2.65 2.86 -0.23 11.58 10.00 11.37 1.18 14.00 10.82 11.19 -2.41 514.95 446.00 514.95 60.90 3.90 3.02 3.54 0.28 3.33 2.70 3.12 0.32 1.82 1.52 1.71 0.06 0.50 0.20 0.32 0.16 40.00 37.31 40.00 0.15 3.79 3.00 3.20 -0.77 3.50 1.80 3.50 0.99 46.75 38.30 39.00 -6.51 67.86 58.75 67.86 6.16 6.50 5.95 6.40 0.05 9.80 8.81 9.70 0.60 4.88 4.00 4.79 0.54 37.98 34.98 36.68 -1.48 0.98 0.30 0.81 -0.17 3.50 2.85 3.25 -0.15 4.45 3.86 4.14 -0.11 10.39 8.39 9.50 -0.70 5.50 4.50 5.00 0.06 1.50 1.20 1.35 -0.14 1.69 1.35 1.57 0.15 2.00 0.90 1.19 -0.16 5.74 5.13 5.40 0.02 11.55 9.10 9.10 -2.15 21.04 18.51 21.04 1.54 0.69 0.25 0.45 -0.15 17.50 12.80 15.49 -1.96 20.78 19.11 20.78 1.67 52.99 50.70 51.71 0.85 6.39 5.45 6.14 0.89 10.50 8.66 10.25 0.37 18.25 12.51 12.52 -5.33 1.89 1.75 1.85 0.06 0.70 0.70 0.70 0.00 11.50 8.01 9.49 -1.66 36.50 31.75 33.50 -1.40 28.50 23.68 28.50 2.27 5.48 4.72 5.12 -0.23 2.60 2.33 2.55 0.29 7.97 5.61 6.03 -1.96 2.45 1.75 1.81 -0.15 231.57 184.00 231.57 46.24 1.00 0.70 0.70 -0.13 21.90 16.00 16.41 -4.36 18.99 17.45 18.99 1.49 35.00 32.00 32.00 -2.95 36.49 30.00 30.00 -5.00 21.42 19.00 19.67 0.70 111.00 88.60 91.12-19.39 47.30 38.25 47.30 9.03 1.15 1.02 1.10 0.00 3.50 2.76 2.76 -0.49 3.40 2.35 3.40 0.15

Open 843.96 Turnover 354,610 P/E (x) 6.33

Change % Change 2.92 0.19 Market cap 200-Day High 31,656.00 mn Div Yield (%) 200-Day Low 16.57 -

4.93 210.71 5.63 45.30 0.50

0.34 2.08

205378 78.39 123046 206.95 25784 125.90 492198 2.09 35604 27.50 88887 6.30 26744 5.70 202807 13.50 227638 287.00 183986 89.99 15635 27.85

Change % Change 42.19 3.90 Market cap 200-Day High 41,363.21 mn Div Yield (%) 200-Day Low 5.04 -

Last 60 days High Low

Volume

40 15

Close 936.51 Listed cap 47,070.70 mn Payout (%) 16.68

Volume

Change % Change 18.67 2.03 Market cap 200-Day High 117,695.73 mn Div Yield (%) 200-Day Low 2.72 -

Last 60 days High Low

13020 2.00 9900 2.21 34391109 20.45 30678 24.05 60048 3.23 15778957 12.81 32075 14.00 34011 560.00 563212 4.79 1069575 4.50 495684 2.49 11005 0.96 6882 50.35 13499 4.00 5056 3.99 137275 48.30 25601 73.00 16679 8.13 55643 9.80 1848835 4.88 33837 39.00 15115 1.58 14525 4.79 158924 5.35 11405 10.90 320789 5.50 6112 1.95 128025 1.99 152126 2.00 113941 6.30 15350 11.55 5896 23.25 12448 1.20 8726 17.50 15789720 20.78 17219150 53.14 119888 7.90 41038 10.50 19003 21.47 333559 4.69 10000 1.20 136351 12.00 10396 36.75 19491 28.50 74383 6.20 6863 3.11 45973 8.69 100378 2.50 56145 231.57 12900 2.18 52736 21.90 24215 18.99 79086 35.00 219526 37.50 147263 21.42 605668 114.99 1392142 49.49 6162 1.90 5306 4.00 65898 4.99

0.70 0.70 6.71 17.55 1.35 8.55 7.50 436.00 2.93 2.23 1.44 0.02 37.08 2.05 1.52 33.80 57.50 5.00 5.31 2.52 34.05 0.30 2.02 2.56 7.00 3.90 0.46 1.01 0.56 4.00 3.25 18.51 0.01 12.00 14.64 40.81 5.16 6.00 12.51 1.38 0.60 6.91 31.35 20.50 2.74 1.30 5.02 0.31 176.00 0.25 14.75 15.00 30.03 29.50 14.00 88.60 37.20 0.73 2.76 1.50

2009 Div BR (%) (%) 20 120 15 20 12.5 20 40 200 20 10 15 20 -

2010 Div BR (%) (%)

30 20 7.5 20 5 70 10B 10 10B 10 20B 10 20 10 6 8 5 - 22.5 15 100R - 20SD 50R 15 25 45R 10B 10 10B 30 - 25SD 40 25 10 5B - 100R 5 45 20 50 25 20B 80 20B -

Performance of SR Pharma and Bio Tech Index

AL-Ghazi Tractor 215 Bolan CastingXDXB 104 Dewan Auto Engineering 214 213 366

Close Chg

20B -

PHARMA AND BIO TECH

Close 1,531.96 Listed cap 1,336.62 mn Payout (%) 131.49

Volume

Low

72.99 66.00 68.00 -2.84 157.00 150.50 153.69 2.33 122.51 98.00 120.97 24.95 1.65 1.45 1.48 0.02 25.24 22.01 25.24 2.74 4.69 4.25 4.53 0.23 5.25 4.05 4.05 -0.15 12.50 10.80 12.17 1.55 237.99 227.00 233.78 4.53 76.50 73.21 75.90 0.90 21.05 19.75 21.04 1.27

Open 1,479.46 Turnover 2,298,657 P/E (x) 30.42

Performance of SR Industrial Engineering Index High Low 1,540.18 1,427.95 Total cos Defaulter cos P/BV (x) ROE (%) 3.02 38.02

4.97 70.84 5.80 151.36 8.42 96.02 1.46 6.92 22.50 4.30 6.33 4.20 - 10.62 5.34 229.25 9.43 75.00 5.46 19.77

High

Close 1,123.44 Listed cap 6,768.53 mn Payout (%) 20.42

2010 Div BR (%) (%)

FOOD PRODUCERS

INDUSTRIAL ENGINEERING Open 1,529.04 Turnover 1,418,787 P/E (x) 7.93

Open

High Low 1,139.41 1,079.29 Total cos Defaulter cos P/BV (x) ROE (%) 1.03 25.35

60.05 34.50

2009 Div BR (%) (%)

Performance of SR Food Producers Index

Dost Steels Ltd

Open 950.17 Turnover 62,454,032 P/E (x) 7.07

2010 Div BR (%) (%)

Huffaz Pipe International Ind

1078119

Agriautos Ind XD 144 Atlas Battery 101 Atlas Honda 626 Dewan Motors 890 General Tyre XD 598 Ghandhara Nissan 450 Ghani Automobile Ind 200 Honda Atlas Cars 1428 Indus Motors 786 Pak Suzuki 823 Sazgar EngineeringXDXB 150

Change % Change 12.37 1.35 Market cap 200-Day High 8,910.88 mn Div Yield (%) 200-Day Low 10.59 -

Last 60 days High Low 31.73

Company

Paid up Cap(mn)

Pak Elektron Tariq Glass Ind

Performance of SR Industrial Metals and Mining Index Open 918.71 Turnover 2,121,108 P/E (x) 2.92

Open 1,081.24 Turnover 1,636,921 P/E (x) 4.05

5.37 0.98

9341

Sitara Chem Ind XDXB

Company

87.86 41.00

138.45

Wah-Noble XD

156284 42953

841427

20B

Nimir Ind Chemical

68.42 38.98

6.54

130

Mandviwala

60.05 38.00

128.00 120.99 125.94

82.5

Lotte Pakistan

74.60 40.42

735 17.07 119.40

133.00

ICI Pakistan

63.05 38.00

168.70

Gatron Ind XD

8.40 42.37

3589350 154.25

Fauji Fert. Bin Qasim

Last 60 days High Low

300

3689939 214.10

Fauji Fertilizer

Volume

1.99

Engro Corporation Ltd

Close Chg

2.78

Fatima Fertilizer

Low

154.25 150.92 153.16

BOC (Pak)

High

250

190.48 184.20 189.15

Clariant Pak

Open

73.47

11950

Agritech Limited

287.99

Pak Int Cont. Terminal XD 1092 PNSC XD 1321

Pakistan Reinsurance Company Limited

Change % Change 47.16 6.97 Market cap 200-Day High 12,896.84 mn Div Yield (%) 200-Day Low 1.95 -

2516976 374.20

Oil & Gas Development XD 43009 10.57 151.17

Bawany AirXDXR

Paid up Cap(mn)

Close 723.99 Listed cap 3,242.17 mn Payout (%) 11.08

11696034 100.49

90.50

Pak Petroleum

Company

High Low 773.54 652.77 Total cos Defaulter cos P/BV (x) ROE (%) 1.45 25.53

8.66

5.23 226.39

369.45 287.99 296.07 -68.44

Last 60 days High Low

Volume

Open 676.82 Turnover 199,237 P/E (x) 5.69

99.54

90.88

100.49

Close Change % Change 1,348.22 21.01 1.58 Listed cap Market cap 200-Day High 65,194.15 mn 1,063,796.67 mn Payout (%) Div Yield (%) 200-Day Low 68.56 6.09 -

Alert ! Unusual Movements

10,250.08 10,287.76 10,025.43 h155.28

INDUSTRIAL TRANSPORTATION

853 18.10

PSO XD

Current High Low Change

7,414.60 7,452.96 7,264.34 h147.29

Performance of SR Industrial Transportation Index

Attock PetroleumXDXB

Pak Oilfields XD

Current High Low Change

KSE 30 Index

OIL AND GAS

Attock Refinery

Pak Refinery Limited

All Share Index

Performance of SR Oil and Gas Index Open 1,327.22 Turnover 31,957,282 P/E (x) 11.26 Company

KSE 100 Index

Symbols

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

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

Open

8.25 90.90 6.59 87.94 13.18 69.49 6.61 23.71 10.72 120.00 5.25 63.11

High

High Low 890.22 840.32 Total cos Defaulter cos P/BV (x) ROE (%) 1.41 22.31 Low

Close Chg

94.75 89.88 94.16 3.26 91.99 85.60 87.29 -0.65 75.00 69.39 73.00 3.51 24.94 24.00 24.33 0.62 139.50 120.00 134.79 14.79 64.00 60.00 61.21 -1.90

Close 872.20 Listed cap 3,904.20 mn Payout (%) 44.54

Volume 37309 17105 85118 7328 11278 58043

Change % Change 28.24 3.35 Market cap 200-Day High 29,057.66 mn Div Yield (%) 200-Day Low 7.04 -

Last 60 days High Low 96.40 124.00 83.00 25.79 139.50 64.19

77.00 85.60 65.00 22.10 115.90 53.36

2009 Div BR (%) (%) 120 10 50 25 70 15

20B 15B

2010 Div BR (%) (%) 20 30

20B -

Fundamental Highlights As on Jun 30, 2009

Technical Analysis RSI (14-day)

62.86

Total Assets (Rs in mn)

130,784.14

MA (10-day)

2.13

Total Equity (Rs in mn)

(8,737.47)

MA (100-day)

2.22

Revenue (Rs in mn)

85,224.08

MA (200-day)

2.57

Interest Expense

1st Support

2.13

Loss after Taxation

2nd Support

2.08

EPS 09 (Rs)

1st Resistance

2.25

Book value / share (Rs)

2nd Resistance

2.32

PE 10 E (x)

Pivot

2.20

PBV (x)

5,619.80 (15,484.94) (1.176) (0.66) (3.39)

KESC closed up 0.06 at 2.25. Volume was 237 per cent above average (trending) and Bollinger Bands were 19 per cent narrower than normal. The company's loss after taxation stood at Rs14.641 billion which translates into a Loss Per Share of Rs0.74 for the year ended FY10. KESC is currently 12.5 per cent below its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into KESC (bullish). Trend forecasting oscillators are currently bullish on KESC.

Bank of Khyber Limited

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

57.11

Total Assets (Rs in mn)

38,810.57

MA (10-day)

3.20

Total Equity (Rs in mn)

5,962.30

MA (100-day)

3.46

Revenue (Rs in mn)

MA (200-day)

3.95

Interest Expense

2,390.39

1st Support

3.26

Loss after Taxation

(637.18)

2nd Support

3.13

EPS 09 (Rs)

1st Resistance

3.48

Book value / share (Rs)

2nd Resistance

3.57

PE 10 E (x)

3.35

Pivot

3.35

PBV (x)

0.28

999.63

(1.273) 11.92

BOK closed up 0.20 at 3.35. Volume was 88 per cent below average (consolidating) and Bollinger Bands were 7 per cent wider than normal. The company's profit after taxation stood at Rs251.784 million which translates into an Earning Per Share of Rs0.50 for the half year of current calendar year (1HCY10). BOK is currently 15.2 per cent below its 200-day moving average and is displaying an upward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of BOK at a relatively equal pace. Trend forecasting oscillators are currently bullish on BOK.

BOOK CLOSURES Company

From

D.M Textile Mills Fateh Textile Mills Ghandhara Nisan Khurshid Spinning Mills N.P Spinning Mills Pak Leather craft Pakistan PVC SG Fibre SG Power Shakarganj Foods (TFC) Soneri Bank Asim Textile Mills East West Life Assurance Fatima Enterprises Idrees Textile Mills JA Textile Mills Mubarak Textile Mills Husein Industries Khalid Siraj Tex Mills Kohinoor Energy Leather Up Otsuka Pakistan S S Oil Mills Atlas Bank D S Industries Gulshan Spinning Mills Masood Textile Mills Nishat Chunian Power Paramount Spinning Mills Pervez Ahmad Securities Summit Bank Bestway Cement Dar Es Salam Textile Mills Gulistan Spinning Mills

25-Oct 25-Oct 25-Oct 25-Oct 25-Oct 25-Oct 25-Oct 25-Oct 25-Oct 25-Oct 26-Oct 26-Oct 26-Oct 26-Oct 26-Oct 26-Oct 26-Oct 27-Oct 27-Oct 27-Oct 27-Oct 27-Oct 27-Oct 28-Oct 28-Oct 28-Oct 28-Oct 28-Oct 28-Oct 28-Oct 28-Oct 29-Oct 29-Oct 29-Oct

03-Nov 31-Oct 31-Oct 01-Nov 31-Oct 31-Oct 30-Oct 30-Oct 30-Oct 02-Nov 04-Nov 01-Nov 01-Nov 04-Nov 03-Nov 01-Nov 05-Nov 02-Nov 03-Nov 02-Nov 02-Nov 02-Nov 02-Nov 05-Nov 02-Nov 30-Oct 05-Nov 03-Nov 30-Oct 02-Nov 05-Nov 05-Nov 05-Nov 31-Oct

D/B/R 15 20 10R 10 15(F) 15(i) 10,20B 15 10,10B 10

INDICATIONS # Extraordinary General Meeting

Spot AGM/Date 15-Oct 15-Oct 18-Oct 18-Oct 19-Oct 20-Oct 20-Oct 20-Oct 21-Oct

25-Oct 31-Oct 28-Oct 30-Oct 30-Oct 27-Oct 30-Oct 30-Oct 30-Oct 29-Oct 30-Oct 30-Oct 30-Oct 30-Oct 27-Oct 30-Oct 06-Nov 30-Oct 29-Oct 30-Oct 30-Oct 29-Oct 30-Oct 06-Nov 30-Oct 30-Oct 30-Oct

Monday, October 25, 2010

FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 1,148.39 Turnover 14,296,571 P/E (x) 6.18 Paid up Cap(mn)

Company

Pak Datacom XD 78 Pakistan Telecomm Co A 37740 Telecard 3000 WorldCall Tele 8606

High Low 1,167.25 1,115.31 Total cos Defaulter cos P/BV (x) ROE (%) 0.79 12.84

Open

High

Low

Close Chg

4.58 104.00 9.20 19.29 1.09 2.47 2.82

103.00 19.59 2.69 2.90

93.00 18.85 2.37 2.51

93.00 -11.00 19.31 0.02 2.53 0.06 2.80 -0.02

Close 1,148.30 Listed cap 50,077.79 mn Payout (%) 62.56

Last 60 days High Low

Volume 5199 6305281 4898117 3087974

Change % Change -0.09 -0.01 Market cap 200-Day High 79,157.19 mn Div Yield (%) 200-Day Low 10.12 -

120.61 20.22 3.08 3.25

91.00 17.32 1.80 2.30

2009 Div BR (%) (%) 70 15 -

2010 Div BR (%) (%) 80 17.5 1 -

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

369 4.99 279 5.27 457 6.31 121 1250 36.67 400 2.61 718 14.31 791 9.71 3000 250 1.43 350 67.50 303 5.00 252 4.53 200 253 1.74 400 1.51

Paid up Cap(mn)

Company

Genertech 198 Hub Power 11572 Japan Power 1560 KESC 7932 Kohinoor EnergySPOT 1695 Kohinoor Power 126 Kot Addu Power XD 8803 S G Power 178 Sitara Energy Ltd 191 Southern Electric 1367 Tri-star Power XD 150

6.33 5.97 2.24 6.81 3.42 5.74 -

Open

High

0.75 33.54 1.60 2.19 23.50 5.00 39.35 0.37 21.60 2.49 0.75

1.45 34.37 1.70 2.27 24.30 5.10 39.50 1.69 21.49 2.60 1.00

Low 0.62 33.25 1.40 2.04 22.75 4.50 38.91 0.44 18.70 2.15 0.71

Close Chg 0.93 34.19 1.59 2.25 24.25 4.50 39.34 0.97 19.20 2.24 0.90

0.18 0.65 -0.01 0.06 0.75 -0.50 -0.01 0.60 -2.40 -0.25 0.15

Close 1,186.84 Listed cap 95,369.29 mn Payout (%) 104.13

Change % Change 13.45 1.15 Market cap 200-Day High 97,535.92 mn Div Yield (%) 200-Day Low 8.30 -

Last 60 days High Low

Volume 1705520 10542335 120850 3183386 31127 27796 555576 38559 23901 2138679 34091

1.45 37.24 2.20 2.63 26.50 6.70 44.85 1.69 23.49 3.19 1.58

0.51 32.75 0.70 1.92 22.75 3.90 38.35 0.23 18.70 2.05 0.33

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

31R -

2010 Div BR (%) (%)

Open 851.23 Turnover 143,476 P/E (x) 85.43 Paid up Cap(mn)

33.80 50.91 11.24 3.30 46.21 10.95 81.00 56.92 15.75 6.07 2.70 9.25 6.61 14.30 7.01 6.02

3.05 0.91 0.30 -1.69 6.18 0.06 3.40 3.15 1.28 0.28 0.32 0.30 -0.77 1.95 -0.09 0.97

40734 5514 19280 10421 319312 45830 38989 9949 6333963 33715 70015 84023 5285 646701 70239 16094

34.40 64.90 11.99 7.90 54.50 13.89 84.00 59.99 18.69 8.20 4.16 10.30 7.70 16.49 10.00 6.54

27.10 47.37 9.42 3.30 34.76 10.04 66.02 52.21 12.50 5.06 1.66 8.00 6.02 11.51 6.00 4.02

High Low 912.94 843.48 Total cos Defaulter cos P/BV (x) ROE (%) 3.29 3.85

Close 887.16 Listed cap 2,290.72 mn Payout (%) 355.53

Paid up Cap(mn)

Company Sui North Gas Sui South GasXDXB

High Low 1,710.25 1,593.68 Total cos Defaulter cos P/BV (x) ROE (%) 1.24 11.41

Change % Change 22.90 1.36 Market cap 200-Day High 36,613.52 mn Div Yield (%) 200-Day Low 6.17 -

Open

High

Low

Close Chg

Volume

Last 60 days High Low

5491 18.64 8390 3.50

32.00 29.25

32.07 29.40

29.70 22.10

31.69 -0.31 22.90 -6.35

1099395 2011875

33.40 30.70

25.00 16.00

2009 Div BR (%) (%) -

2010 Div BR (%) (%) 15

25B

BANKS Performance of SR Banks Index Open 996.01 Turnover 75,277,358 P/E (x) 7.18 Paid up Cap(mn)

Company

Open

Allied Bank Limited 7821 5.40 53.51 Askari Bank 6427 6.46 14.98 Atlas Bank 5001 2.17 Bank Alfalah 13492 12.43 8.85 Bank AL-Habib 7322 6.94 32.25 Bank Of Khyber 5004 3.35 3.15 Bank Of Punjab 5288 8.10 BankIslami Pak 5280 3.24 Faysal Bank 6091 3.31 13.62 Habib Bank Ltd 10019 6.72 100.01 Habib Metropolitan Bank 8732 6.06 19.77 JS Bank Ltd 6128 2.38 KASB Bank Ltd 9509 2.50 MCB Bank Ltd 7602 9.51 200.08 Meezan Bank 6983 7.48 15.25 Mybank Ltd 5304 2.23 National Bank 13455 5.68 64.21 Network Mic Bank 300 1.14 NIB Bank 40437 2.83 Royal Bank Ltd 17180 6.14 Samba Bank 14335 1.96 Silkbank Ltd 26716 13.18 2.83 Soneri Bank 6023 6.25 Stand Chart Bank 38716 9.44 6.51 United Bank Ltd 12242 6.40 53.03

High

High Low Close 1,037.89 985.45 1,023.90 Total cos Defaulter cos Listed cap - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 0.97 13.45 34.35 Low

Close Chg

55.89 53.40 55.53 2.02 15.90 14.65 15.64 0.66 2.19 1.79 1.97 -0.20 9.55 8.70 9.32 0.47 32.90 31.44 32.19 -0.06 3.54 3.00 3.35 0.20 8.88 8.04 8.65 0.55 3.26 2.77 3.17 -0.07 14.55 13.60 14.36 0.74 107.15 98.51 104.38 4.37 20.50 19.01 20.48 0.71 2.50 2.25 2.40 0.02 2.69 2.35 2.50 0.00 205.90 196.00 203.95 3.87 15.70 14.71 15.40 0.15 2.60 2.08 2.20 -0.03 67.99 64.10 67.69 3.48 1.14 0.62 1.00 -0.14 3.01 2.76 2.90 0.07 8.10 6.20 6.42 0.28 2.65 1.90 2.03 0.07 3.00 2.70 2.90 0.07 6.99 5.80 6.41 0.16 6.88 6.25 6.61 0.10 54.85 52.15 54.43 1.40

Last 60 days High Low

Volume 946880 2990981 1084322 10136979 1383286 2982782 7403114 545999 568996 1925573 415513 1748625 173139 5092215 42977 194409 17498766 12500 3525099 989085 984658 11544278 269116 34830 2783236

Change % Change 27.89 2.80 Market cap 200-Day High 622,819.82 mn Div Yield (%) 200-Day Low 4.78 -

59.70 17.12 2.84 10.25 33.75 3.99 10.94 3.69 15.58 109.10 22.38 2.90 3.70 214.99 15.95 2.79 73.89 2.25 3.45 12.50 2.90 3.30 6.99 8.50 60.20

48.51 13.99 1.52 7.32 29.10 2.50 7.35 2.31 12.75 92.00 18.02 2.00 2.03 180.40 13.80 1.62 60.51 0.26 2.42 5.20 1.55 2.15 5.01 6.00 49.90

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

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

High

Low

Close Chg

Volume

Last 60 days High Low

EFU Life Assurance XB

850 42.46

69.97

82.99

72.47

78.13 8.16

131341

82.99

51.25

5513.33B

New Jub Life Insurance

627 54.31

43.23

44.00

41.42

43.45 0.22

12135

45.20

34.50

NON LIFE INSURANCE Performance of SR Non Life Insurance Index Open 666.15 Turnover 12,682,948 P/E (x) 11.72 Paid up Cap(mn)

Company

Adamjee Insurance XD

High Low 722.38 666.58 Total cos Defaulter cos P/BV (x) ROE (%) 0.61 5.20

Close 708.18 Listed cap 11,111.34 mn Payout (%) 79.54

Change % Change 42.04 6.31 Market cap 200-Day High 44,325.44 mn Div Yield (%) 200-Day Low 6.79 -

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1237 13.55

71.63

75.69

70.85

74.52 2.89

4931417

89.50

63.05

2009 Div BR (%) (%) 30

10B

2010 Div BR (%) (%) 10

Symbols SING SMCPL AASM GWLC ADOS PMRS TREI TRPOL SHEZ KSTM PNGRS SSML DWSM DCM SKFL KCL SNAI BAFS GFIL PRET KASBM HAJT KOHS FECTC TRIBL EXIDE JVDC SAIF CRTM MZSM CJPL PCAL KSBP RMPL MUKT BWHL EMCO NOPK PAKL ISIL KML OTSU GAEL FZCM SERF ICL BUXL DADX WAZIR WYETH NPSM CWSM BCML FNEL BIFO HUSS GATM SHDT LEUL ELSM SHCM UVIC FZTM GRAYS JKSM STCL GUTM BROT ADAMS SSOM ACCM QUAT CLOV SCL MFTM SFWF BAWS BGL HINO PECO SAPT FASM QUET SJTM ARPAK MFFL SIEM LPGL FIMM NESTLE BILF DIIL GRYL ALQT ULEVER MEHT GAMON FRCL SIBL BFMOD AGIC PSEL BTL COLG JOPP ILTM AABS SFAT LIBM FNBM SASML FTHM BHAT SZTM TSMF MLCFPS SANSM SHJS LMSM DMTX PHDL UPFL NATM POAF SFL TOWL DSML ARM HUSI MSCL LATM FIBLM DINT RCML FECS IDYM IDEN

2009 Div BR (%) (%)

2010 Div BR (%) (%)

FINANCIAL SERVICES Performance of SR Financial Services Index Open 356.16 Turnover 71,776,064 P/E (x) 0.46 Paid up Cap(mn)

High Low 393.16 350.08 Total cos Defaulter cos P/BV (x) ROE (%) 0.17 37.22

Open

High

Low

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

225 450 6.95 3750 2.46 250 441 2121 12.50 600 2.67 2849 3166 1.56 626 0.32 7633 508 500 1000 13.80 821 4.35 775 452 978 5.17

0.52 25.96 22.22 1.99 2.74 2.01 8.14 0.69 4.49 1.72 9.30 2.27 25.31 5.80 5.25 1.69 0.54 2.42

0.74 28.49 25.39 1.99 3.35 2.14 8.79 0.75 4.69 2.40 10.43 2.55 26.93 6.33 5.69 1.95 0.78 2.49

0.51 25.25 22.30 1.70 2.01 1.50 6.70 0.53 3.65 1.55 9.13 2.16 24.76 5.63 4.70 1.61 0.55 2.25

Close Chg

Close 382.58 Listed cap 30,336.44 mn Payout (%) 4.60

Volume

Change % Change 26.42 7.42 Market cap 200-Day High 27,374.41 mn Div Yield (%) 200-Day Low 9.96 -

Last 60 days High Low

2009 Div BR (%) (%)

0.59 27.85 24.97 1.99 2.55 2.00 7.67 0.68 3.80 1.94 10.25 2.42 26.93 6.21 5.53 1.73 0.60 2.48

0.07 1.89 2.75 0.00 -0.19 -0.01 -0.47 -0.01 -0.69 0.22 0.95 0.15 1.62 0.41 0.28 0.04 0.06 0.06

690652 526224 17156981 57206 5054 414969 21128 466091 174602 399071 45427717 2496928 215331 2055484 97818 938137 90673 56184

1.10 45.80 34.99 2.96 3.35 2.39 9.00 1.09 5.29 2.84 14.60 5.84 40.99 7.93 5.95 2.57 1.70 3.00

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

0.42 24.62 20.90 1.55 1.85 1.17 6.70 0.44 2.54 1.17 8.80 1.96 24.25 5.10 3.66 1.35 0.40 1.50

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

EQUITY INVESTMENT INSTRUMENTS Performance of SR Equity Investment Instruments Index Open 1,033.70 Turnover 24,393,498 P/E (x) 7.40

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

UPTO 5000 VOLUME

10B 20B -

Open

Company

Close 1,703.08 Listed cap 12,202.80 mn Payout (%) 66.79

10 10 -

Change % Change 35.92 4.22 Market cap 200-Day High 10,354.63 mn Div Yield (%) 200-Day Low 4.16 -

Performance of SR Gas Water and Multiutilities Index Open 1,680.18 Turnover 3,111,270 P/E (x) 10.83

40 10B 20 25B 40 8.7B 35 35 30 20B 30 5 25B 20 15B -14.28B - 20B - 16B

Company

50 - 7.8R 15 50 20 -

GAS WATER AND MULTIUTILITIES

31.00 50.10 10.40 3.30 41.05 10.60 78.00 53.19 14.31 5.56 2.10 8.33 6.61 12.30 6.10 4.71

LIFE INSURANCE

ELECTRICITY High Low 1,194.47 1,159.03 Total cos Defaulter cos P/BV (x) ROE (%) 1.17 9.35

34.40 53.75 11.50 5.85 48.63 11.25 84.00 58.85 15.95 7.04 2.93 9.91 7.70 14.30 7.95 6.10

Performance of SR Life Insurance Index

Performance of SR Electricity Index Open 1,173.39 Turnover 42,965,844 P/E (x) 12.54

30.75 50.00 10.94 4.99 40.03 10.89 77.60 53.77 14.47 5.79 2.38 8.95 7.38 12.35 7.10 5.05

Paid up Cap(mn)

Company

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

High Low 1,078.67 1,023.02 Total cos Defaulter cos P/BV (x) ROE (%) 0.30 4.09

Open

High

Low

264 1375 5.20 210 4.08 900 3.01 525 2.31 780 2.82 65 3.36 200 2.00 113 3.29 524 300 4.57 581 760 3.03 397 4.73 1008 5.16 3180 37.63 1186 1200 5.29 184 1000 2.99 125 1.91 1698 3.78 3000 5.48 59 6.89 1000 1.63 2835 5.22 2841 4.30 872 2.45 340 7.10 454 5.05 212 5.21 298 2.71 264 2.83

1.35 6.25 2.56 3.00 2.70 1.19 1.87 0.65 2.63 1.19 4.04 1.70 3.65 5.45 5.90 2.94 2.80 5.50 0.91 2.55 1.00 8.02 7.05 8.95 5.50 8.42 3.79 0.94 1.29 8.85 2.70 2.75 6.68

1.48 6.39 2.60 4.18 4.50 1.35 1.92 1.10 2.80 1.19 4.55 1.75 3.80 5.50 6.00 3.20 2.97 5.50 1.23 3.29 1.16 8.14 7.25 8.90 5.68 8.60 3.95 1.03 1.50 9.00 4.50 2.74 6.64

1.20 6.10 2.10 3.00 2.82 0.90 1.00 0.55 2.11 1.05 3.16 1.51 2.70 5.11 5.80 2.70 2.52 5.45 0.56 2.52 0.80 7.82 7.00 7.70 5.00 7.90 3.52 0.90 1.20 8.50 1.80 1.75 4.71

Close Chg 1.33 6.24 2.16 4.13 3.00 1.24 1.11 0.80 2.14 1.05 4.25 1.73 2.79 5.35 5.99 3.01 2.95 5.50 1.18 2.99 1.05 7.93 7.02 7.72 5.60 8.15 3.78 0.93 1.49 8.89 1.98 2.14 5.44

-0.02 -0.01 -0.40 1.13 0.30 0.05 -0.76 0.15 -0.49 -0.14 0.21 0.03 -0.86 -0.10 0.09 0.07 0.15 0.00 0.27 0.44 0.05 -0.09 -0.03 -1.23 0.10 -0.27 -0.01 -0.01 0.20 0.04 -0.72 -0.61 -1.24

Close 1,062.96 Listed cap 29,771.58 mn Payout (%) 104.19

Change % Change 29.26 2.83 Market cap 200-Day High 17,418.94 mn Div Yield (%) 200-Day Low 24.75 -

Last 60 days High Low

Volume

122280 2.24 602066 7.25 9000 3.44 249783 5.80 62085 4.50 3694768 1.85 6464 2.99 733517 1.10 188304 3.44 25449 1.50 193138 4.55 5627 2.06 804411 3.88 31251 6.80 140000 7.45 10672943 3.90 1098768 3.98 12000 7.00 23525 1.25 11087 3.70 31907 1.40 939320 9.86 533859 8.10 6639 9.45 342268 6.49 1419285 10.55 227954 5.00 1008116 1.20 605342 2.00 18903 10.99 5511 7.12 531107 4.40 32153 6.99

1.01 5.85 2.10 2.80 2.53 0.90 0.90 0.16 1.65 0.76 0.99 1.36 2.32 4.80 5.56 2.70 2.31 5.30 0.56 2.25 0.25 7.00 6.01 6.55 4.00 7.60 3.50 0.70 0.57 7.75 0.50 1.00 4.71

2009 Div BR (%) (%) 4.5 5 20 10 5 15 16.5 10

2010 Div BR (%) (%)

- 18.5 5 8.2 2.2 0 1.2 5 17 11 21 5 10 - 15.5 15 3 - 18.6 - 11.53 18 5 20 10 3 1 17 5 - 12.5

Open 17.80 6.20 35.00 3.49 15.50 36.53 2.00 0.74 95.00 0.69 5.80 2.10 1.42 1.20 1.10 8.53 29.75 51.90 4.40 29.00 1.85 0.68 3.90 5.78 1.26 142.90 60.00 4.00 23.50 4.94 0.99 54.50 77.70 1370.00 0.46 30.40 3.50 21.27 4.95 74.00 2.01 29.26 0.20 49.20 0.20 22.57 10.00 24.77 5.21 830.06 22.00 1.98 13.25 10.25 38.00 13.40 22.52 8.60 1.89 21.10 11.00 3.00 320.00 48.00 6.70 8.95 24.40 0.89 12.50 3.00 0.85 9.00 49.45 57.36 1.00 8.49 1.50 1.80 119.99 307.98 97.50 34.95 27.15 0.43 12.00 61.81 1189.99 14.45 48.65 1941.00 1.10 14.69 2.19 3.26 4007.50 64.98 2.14 3.90 2.60 4.30 11.94 154.58 51.25 740.00 9.50 90.11 96.00 3.17 55.00 7.05 5.00 113.00 189.00 6.49 1.99 4.49 13.90 68.00 2.50 2.50 47.95 1030.00 13.60 12.48 112.00 20.00 3.50 16.00 10.79 9.10 7.50 1.99 23.10 29.16 40.95 213.59 12.00

High 18.88 7.48 35.00 4.39 16.40 38.99 2.25 0.91 96.50 0.79 6.20 2.50 1.85 1.48 1.20 10.75 31.00 54.00 4.80 29.50 1.83 0.68 5.24 5.78 2.00 155.99 61.00 4.85 23.80 5.30 1.05 56.60 78.90 1554.00 0.90 31.92 3.40 24.99 5.95 77.70 2.75 32.00 0.20 51.66 0.30 26.49 10.87 28.50 6.20 830.00 23.00 2.59 16.11 10.25 40.04 13.40 25.40 9.60 1.89 21.50 13.00 3.02 384.24 51.00 7.57 9.10 23.18 0.85 13.20 3.00 0.85 9.00 49.50 59.85 1.00 8.49 1.50 1.90 124.99 305.00 100.50 34.00 30.99 0.97 15.00 67.77 1190.00 19.24 48.76 1999.00 1.20 15.60 2.38 3.99 4168.99 66.40 2.48 4.80 3.55 4.20 12.25 160.00 51.90 782.45 10.00 90.00 96.99 5.10 59.99 7.05 5.00 113.00 204.45 5.49 2.22 6.55 14.00 67.23 3.25 2.50 45.61 1030.00 13.60 13.98 121.80 20.00 3.50 16.00 10.90 9.10 8.00 2.85 24.71 30.61 45.12 223.99 12.00

Low

16.51 6.02 31.97 3.01 15.30 35.60 1.56 0.42 92.01 0.36 4.25 1.10 1.42 1.10 1.10 8.90 28.40 50.83 2.55 25.71 1.26 0.30 2.80 5.10 1.26 144.99 57.00 3.10 17.89 4.20 0.62 51.15 74.26 1380.00 0.25 29.40 2.55 21.90 3.95 70.00 1.52 29.59 0.20 51.00 0.18 23.50 10.00 23.83 4.80 761.00 20.56 1.00 12.25 7.03 36.10 12.19 23.51 7.60 1.50 17.21 10.00 3.00 320.02 47.00 5.58 7.70 18.89 0.33 12.46 3.00 0.85 7.51 47.19 56.10 0.99 7.48 1.40 1.70 114.01 296.00 90.00 32.75 25.80 0.21 13.00 61.50 1128.00 15.25 42.90 1844.00 0.61 13.59 1.21 3.30 3960.00 55.10 1.42 2.90 1.67 3.80 11.00 146.90 45.50 740.00 8.25 85.19 95.90 4.10 55.00 6.98 5.00 113.00 180.50 4.49 1.80 4.00 13.90 63.90 2.50 1.50 37.54 1000.00 9.65 13.00 115.91 20.00 3.00 14.01 9.90 8.12 7.50 1.99 23.50 29.16 42.99 213.59 11.80

17.15 6.89 31.97 3.59 16.40 36.25 1.80 0.53 93.85 0.75 5.01 1.50 1.80 1.41 1.20 10.24 30.00 50.83 2.60 26.94 1.30 0.31 5.24 5.65 1.57 148.00 60.00 3.94 20.87 5.19 0.76 53.85 76.56 1550.00 0.49 30.20 2.88 23.50 3.95 74.97 2.70 32.00 0.20 51.66 0.30 26.49 10.87 23.83 5.40 801.00 20.56 1.43 15.00 8.50 40.04 12.19 23.80 9.60 1.50 19.40 10.95 3.02 376.88 50.16 6.09 7.70 18.89 0.39 12.51 3.00 0.85 7.51 49.48 56.20 1.00 7.48 1.40 1.70 118.00 300.00 90.05 32.75 30.94 0.97 13.00 67.77 1183.48 19.24 43.21 1942.10 0.76 14.89 2.00 3.50 4000.02 55.10 1.51 4.80 2.50 3.80 11.95 150.00 45.50 782.45 10.00 90.00 96.99 5.10 55.50 6.98 5.00 113.00 180.50 5.26 2.00 4.03 13.90 65.00 3.25 1.50 37.54 1000.00 9.65 13.48 116.68 20.00 3.00 14.50 9.99 8.12 7.50 2.84 24.71 30.61 44.99 223.99 11.80

Change

Vol

-0.65 0.69 -3.03 0.10 0.90 -0.28 -0.20 -0.21 -1.15 0.06 -0.79 -0.60 0.38 0.21 0.10 1.71 0.25 -1.07 -1.80 -2.06 -0.55 -0.37 1.34 -0.13 0.31 5.10 0.00 -0.06 -2.63 0.25 -0.23 -0.65 -1.14 180.00 0.03 -0.20 -0.62 2.23 -1.00 0.97 0.69 2.74 0.00 2.46 0.10 3.92 0.87 -0.94 0.19 -29.06 -1.44 -0.55 1.75 -1.75 2.04 -1.21 1.28 1.00 -0.39 -1.70 -0.05 0.02 56.88 2.16 -0.61 -1.25 -5.51 -0.50 0.01 0.00 0.00 -1.49 0.03 -1.16 0.00 -1.01 -0.10 -0.10 -1.99 -7.98 -7.45 -2.20 3.79 0.54 1.00 5.96 -6.51 4.79 -5.44 1.10 -0.34 0.20 -0.19 0.24 -7.48 -9.88 -0.63 0.90 -0.10 -0.50 0.01 -4.58 -5.75 42.45 0.50 -0.11 0.99 1.93 0.50 -0.07 0.00 0.00 -8.50 -1.23 0.01 -0.46 0.00 -3.00 0.75 -1.00 -10.41 -30.00 -3.95 1.00 4.68 0.00 -0.50 -1.50 -0.80 -0.98 0.00 0.85 1.61 1.45 4.04 10.40 -0.20

4655 4597 4592 4518 4495 4422 4405 4320 3999 3920 3878 3775 3570 3517 3500 3468 3411 3315 3245 3067 3004 3000 2991 2868 2683 2655 2589 2468 2421 2410 2265 2223 2215 2201 2171 2154 2089 2077 2056 2024 2012 2003 2000 2000 2000 1929 1837 1816 1750 1740 1623 1622 1603 1517 1504 1420 1411 1399 1384 1267 1266 1248 1234 1206 1148 1132 1128 1125 1109 1000 1000 1000 953 881 801 800 731 700 685 676 631 600 506 503 501 493 465 403 400 357 355 349 338 300 295 291 286 279 277 267 219 179 150 127 117 104 102 102 101 100 99 95 89 85 63 61 60 53 50 34 30 21 19 19 14 10 10 10 7 6 5 5 4 3 2 2 2

BOARD MEETINGS

Dera Ghazi Khan Cement Co Ltd

KSE 100 INDEX

National Bank of Pakistan

Fauji Fertiliser Bin Qasim Ltd

Company

Date

Time

ABL Cash Fund ABL Income Fund ABL Islamic Cash Fund ABL Stock Fund Agriauto Industries Limited Arif Habib Investments Ltd Arif Habib Securities Limited Berger Paints Pakistan Ltd BMA Chundrigar Road Saving Fund BMA Empress Cash Fund Century Insurance Company Ltd

25-Oct 25-Oct 25-Oct 25-Oct 25-Oct 25-Oct 25-Oct 25-Oct 25-Oct 25-Oct 25-Oct

4:00 4:00 4:00 4:00 11:30 10:30 4:00 3:00 10:30 10:30 4:30

TECHNICAL LEVELS Company

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position

Fair Value

*Arif Habib Ltd

Buy

*Arif Habib Ltd

AKD Securities Ltd

43.29

Buy

AKD Securities Ltd

TFD Research

36.85

Positive

TFD Research

79.67

Support 1

10,567.60

10,529.30

Support 2

10,482.70

MA (10-day)

10,449.22

Resistance 1

10,723.30

MA (100-day)

9,960.09

Resistance 2

10,794.15

Technical Analysis

MA (200-day)

9,985.53

Pivot

10,638.45

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

per cent above average and Bollinger Bands were 18 per cent wider than normal. As far as resistance level is concern, the market will see major 1st resistance level at 10,723.30 and 2nd resistance level at 10,794.15, while

Technical Outlook Leverage Position

73.18 26.35 25.31 27.15 27.10 26.79

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

Fair Value

AKD Securities Ltd

Rs Recommendations

Brokerage House

182.55 5,096.79 N/A N/A N/A 29.62

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

Rs Recommendations

Brokerage House

Buy

AKD Securities Ltd

Buy

AKD Securities Ltd

Positive

TFD Research

Positive

TFD Research

Technical Outlook

65.00 50.85 46.87 51.93 51.79 51.85

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

175.80 9,090.61 N/A N/A N/A 115.21

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

56.86 33.63 34.04 33.78 33.90 33.81

326.94 9,948.74 N/A N/A N/A 9.80

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

810.01 27,694.18 N/A N/A N/A 0.03

Neutral

92.3

Positive

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

67.45 65.10 65.49 71.96 65.74 66.05

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

318.37 21,550.26 N/A N/A N/A 61.14

Pakistan Telecommunication Co Ltd

Fair Value

Rs Recommendations

Brokerage House

Buy

AKD Securities Ltd

10.25

Accumulate

TFD Research

14.01

Positive

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

66.86 9.13 8.86 10.46 9.13 9.13

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

Fair Value 24.04 30.5

Rs Recommendations Buy Positive

Technical Outlook

Leverage Position

61.96

Technical Outlook

Bank Al-Falah Ltd

59.97

Leverage Position

TFD Research

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

*Arif Habib Ltd

Technical Analysis

AKD Securities Ltd

Buy

NBP closed up 3.48 at 67.69. Volume was 318 per cent above average (trending) and Bollinger Bands were 38 per cent narrower than normal. NBP is currently 2.0 per cent above its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into NBP (mildly bullish). Trend forecasting oscillators are currently bullish on NBP.

Buy

44.9

Accumulate Neutral

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

Rs Recommendations

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

74.2

*Arif Habib Ltd

Fair Value

FFBL closed up 1.00 at 30.43. Volume was 17 per cent above average and Bollinger Bands were 54 per cent wider than normal. FFBL is currently 4.8 per cent above its 200-day moving average and is displaying an upward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into FFBL (bullish). Trend forecasting oscillators are currently bullish on FFBL.

*Arif Habib Ltd

Technical Outlook

Brokerage House

Buy

Leverage Position

69.45 29.81 28.03 29.49 30.25 30.20

Buy

TFD Research

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

Fair Value

32.06 29.1

*Arif Habib Ltd

Rs Recommendations

Hub Power Co Ltd

Nishat Mills Ltd

Fair Value

Technical Outlook

Index will continue to find its 1st support level at 10,567.60 and 2nd sup- * Target price for Dec-10 & **Net Open Interest in future market port level at 10,482.70. DGKC closed up 2.22 at 27.92. Volume was 160 per cent above average KSE 100 INDEX is currently 6.7 per cent above its 200-day moving average (trending) and Bollinger Bands were 24 per cent wider than normal. and is displaying an upward trend. Volatility is extremely low when compared DGKC is currently 2.8 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 low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into INDEX (mildly bullish). Trend forecastreflect very strong flows of volume into DGKC (bullish). Trend forecasting ing oscillators are currently bullish on INDEX. Momentum oscillator is cur- oscillators are currently bullish on DGKC. Momentum oscillator is currentrently indicating that INDEX is currently in an overbought condition. ly indicating that DGKC is currently in an overbought condition.

Brokerage House

MA (5-day)

KSE 100 INDEX closed up 220.64 points at 10,652.48. Volume was 121

Rs Recommendations

674.58 6,287.07 N/A N/A N/A N/A

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

56.65 19.25 18.70 19.64 19.11 19.22

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

584.63 11,289.30 N/A N/A N/A 7.84

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

NML closed up 0.85 at 51.71. Volume was 104 per cent above average and Bollinger Bands were 2 per cent wider than normal. NML is currently 0.4 per cent below its 200-day moving average and is displaying an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into NML (bullish). Trend forecasting oscillators are currently bullish on NML.

HUBC closed up 0.65 at 34.19. Volume was 337 per cent above average (trending) and Bollinger Bands were 53 per cent narrower than normal. HUBC is currently 1.2 per cent above its 200-day moving average and is displaying an upward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into HUBC (mildly bullish). Trend forecasting oscillators are currently bullish on HUBC.

BAFL closed up 0.47 at 9.32. Volume was 27 per cent above average and Bollinger Bands were 46 per cent wider than normal. BAFL is currently 10.9 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 very strong flows of volume into BAFL (bullish). Trend forecasting oscillators are currently bullish on BAFL.

PTC closed up 0.02 at 19.31. Volume was 64 per cent above average and Bollinger Bands were 58 per cent narrower than normal. PTC is currently 1.6 per cent below its 200-day moving average and is displaying an upward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into PTC (mildly bullish). Trend forecasting oscillators are currently bullish on PTC.

Al-Abbas Cement Allied Bank Limited Attock Cement Arif Habib Limited Arif Habib Securities Adamjee Insurance Askari Bank Azgard Nine Attock Petroleum Attock Refinery Bank Alfalah BankIslami Pak Bank Of Punjab Dewan Cement DGK Cement Dewan Salman Dost Steels Ltd EFU General Insurance EFU Life Assurance Engro Chemical Faysal Bank Fauji Cement Fauji Fert Bin Fauji Fertilizer Habib Bank Ltd Hub Power ICI Pakistan Indus Motors JOV and CO Japan Power JS Bank Ltd Jah Siddiq Co Kot Addu Power KESC Lucky Cement MCB Bank Ltd Maple Leaf Cement National Bank Nishat (Chunian) Netsol Technologies NIB Bank Nimir Ind.Chemical Nishat Mills Oil & Gas Dev. XD PACE (Pakistan) Ltd. Pervez Ahmed Sec PIAC (A) Pioneer Cement Pak Oilfields Pak Petroleum Pak Suzuki PSO XD PTCLA Shell Pakistan Sui North Gas Sitara Peroxide Sui South Gas Telecard TRG Pakistan United Bank Ltd WorldCall Tele

RSI 1st 2nd (14-day) Support 51.41 3.15 3.05 70.81 55.05 54.60 43.89 63.05 62.60 50.83 27.40 26.95 61.35 24.50 24.00 65.70 73.60 72.70 65.67 15.50 15.35 66.33 10.80 10.30 32.29 294.15 292.25 78.57 98.00 96.45 66.86 9.20 9.05 50.82 3.10 3.00 60.65 8.50 8.35 52.65 1.55 1.50 73.18 27.45 26.95 55.84 1.50 1.45 78.78 2.85 2.55 74.02 45.50 44.80 73.82 74.25 70.40 50.22 174.90 173.60 63.92 14.25 14.10 59.46 5.00 4.90 69.45 30.25 30.10 67.63 108.80 108.30 66.14 103.20 102.05 56.86 33.80 33.45 68.73 127.45 126.50 59.99 228.55 223.25 41.40 2.25 2.05 53.80 1.50 1.40 49.92 2.35 2.30 44.21 10.10 9.95 32.89 39.05 38.80 62.86 2.15 2.10 59.85 72.25 71.25 67.94 202.00 200.05 57.62 3.00 2.95 67.45 65.95 64.20 77.85 20.15 19.55 47.01 17.90 17.50 54.99 2.85 2.80 63.84 1.50 1.45 65.00 51.00 50.25 72.69 151.70 150.20 64.72 3.10 3.00 55.21 1.65 1.55 55.20 2.10 1.95 53.11 8.05 7.95 57.32 238.60 234.00 57.88 187.30 185.40 54.67 75.15 74.35 47.76 263.30 260.60 56.65 19.10 18.90 31.43 183.30 178.15 56.65 31.50 31.30 76.87 10.55 9.95 30.78 22.35 21.85 64.02 2.45 2.40 62.19 4.25 4.15 65.37 53.55 52.65 61.05 2.75 2.70

1st 2nd Resistance 3.40 3.55 55.95 56.35 63.90 64.30 28.40 28.95 25.45 25.90 75.55 76.60 15.85 16.05 11.75 12.10 298.80 301.55 100.80 102.05 9.50 9.65 3.25 3.30 8.80 8.95 1.65 1.70 28.25 28.55 1.65 1.75 3.40 3.70 47.45 48.70 81.25 84.40 178.20 180.20 14.50 14.70 5.20 5.25 30.65 30.90 109.75 110.20 106.35 108.35 34.45 34.75 129.65 130.90 238.50 243.25 2.55 2.75 1.70 1.80 2.50 2.55 10.40 10.60 39.55 39.80 2.30 2.35 73.85 74.45 205.90 207.85 3.15 3.25 68.70 69.75 21.10 21.40 18.65 19.00 2.95 3.05 1.65 1.70 52.25 52.75 154.45 155.70 3.30 3.40 1.90 2.05 2.40 2.60 8.25 8.40 246.05 248.90 190.75 192.35 76.35 76.75 268.10 270.20 19.55 19.80 195.30 202.15 31.95 32.20 11.40 11.70 23.15 23.45 2.60 2.70 4.50 4.65 55.10 55.75 2.85 2.90

Pivot 3.30 55.45 63.45 27.95 24.95 74.65 15.70 11.20 296.90 99.25 9.35 3.15 8.65 1.60 27.75 1.60 3.10 46.75 77.40 176.90 14.40 5.10 30.50 109.25 105.20 34.10 128.70 233.25 2.40 1.60 2.40 10.25 39.30 2.20 72.85 203.95 3.10 66.95 20.45 18.25 2.90 1.60 51.50 152.95 3.20 1.80 2.25 8.15 241.45 188.90 75.55 265.40 19.35 190.15 31.75 10.80 22.65 2.55 4.40 54.20 2.80

Taiwanâ&#x20AC;&#x2122;s Fudon mulls life JV in China 8

Monday, October 25, 2010

Ex-AIG CEO Greenberg gets a legal black eye

AIG raises $17.9bn through AIA IPO

SHANGHAI:The AIA building is seen the Chinese metropolis.-Reuters

PM vows transparent Watan Card distribution

Flood-hit may get insurer-feesâ&#x20AC;&#x2122; let-off ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani has said we are reviewing exempting flood affectees from the fees of life/health insurance and gas/electricity bills payments. He said this while talking to media at Nadra Headquarters at Islamabad. He said so far 66 per cent of affectees have been issued Watan cards as part of initial aid. He said it is a transparent pro-

gramme adding that we will make distribution of Watan Cards transparent as well, which is the largest cash aid in the shortest time program in the world. He reiterated that rehabilitation of the flood affectees is the top priority of the government. He said a strategy would be devised to ensure peace in Karachi with consultation of political forces. He said that the purpose of

his visit to Nadra is to see what steps Nadra has taken for the relief of flood affectees and to review the progress. He said that he has asked the provinces to send verified lists of affectees at the earliest so that Watan cards should be issued as soon as possible. He said that most of the affectees are pensioners and he has asked Nadra to make special arrangements for them.-Online

Regulators close 7 more banks in US WASHINGTON: The Federal Deposit Insurance Corp said on Friday that US regulators closed seven more banks, bringing the total so far this year to 139. The biggest was Hillcrest Bank of Overland Park, Kansas, which had approximately $1.65 billion in total assets and $1.54 billion in total deposits. Regulators also closed First Arizona Savings, Scottsdale, Arizona; First Suburban National Bank, Maywood, Illinois; First National Bank of Barnesville, Barnesville, Georgia; Gordon Bank, Gordon, Georgia; Progress Bank of Florida, Tampa, Florida; and First Bank of Jacksonville, Jacksonville, Florida. A newly chartered bank subsidiary of NBH Holdings Corp, Boston, Massachusetts, will assume all of the deposits of Hillcrest Bank. The new NBH subsidiary, also called Hillcrest Bank, also agreed to purchase essentially all of the failed bank's assets, the FDIC said. First Arizona Savings had approximately $272.2 million in total assets and $198.8 million in total deposits. At the time of closing, the bank had an estimated $1.8 million in uninsured funds. The FDIC said it was unable to find another financial institution to take over

the banking operations of First Arizona Savings. As a result, checks to depositors for their insured funds will be mailed on Monday. First Suburban National Bank had about $148.7 million in total assets and $140.0 million in total deposits. Seaway Bank and Trust Company, Chicago, Illinois, assumed all of First Suburban's deposits and agreed to purchase essentially all of the failed bank's assets. First National Bank of Barnesville had approximately $131.4 million in total assets and $127.1 million in total deposits. United Bank of Zebulon, Georgia, assumed all of the Barnesville bank's deposits and agreed to purchase essentially all of the assets. Gordon Bank had approximately $29.4 million in total assets and $26.7 million in total deposits. Morris Bank of Dublin, Georgia, paid a premium of 0.5 percent for the deposits of Gordon Bank and agreed to purchase about $11.5 million of the failed bank's assets. The FDIC will keep the remaining assets for later disposition. Progress Bank of Florida had approximately $110.7 million in total assets and $101.3 million in total deposits. Bay Cities Bank of Tampa,

Florida, assumed all of Progress Bank's deposits and agreed to purchase essentially all of the failed bank's assets. First Bank of Jacksonville had approximately $81.0 million in total assets and $77.3 million in total deposits. Ameris Bank of Moultrie, Georgia, assumed all of the Jacksonville bank's deposits and agreed to purchase essentially all of the failed bank's assets. FDIC Chairman Sheila Bair has said she expects the number of bank failures this year to exceed the 2009 total of 140, but that total assets of the failures will probably be lower. This week, the FDIC said estimated bank failures will cost the Deposit Insurance Fund $52 billion from 2010 through 2014, down from an earlier estimate of $60 billion. The Deposit Insurance Fund, financed by banks that pay into the fund, guarantees individual accounts up to $250,000. While failures are still occurring at a fairly brisk pace, it is now mostly smaller institutions, community banks, that have been collapsing. Washington Mutual, which had $307 billion in assets when it was seized in September 2008, remains the largest bank to fail during the financial crisis.-Reuters

Local insurers ride bulls at KSE last wk Staff Reporter KARACHI: During the last week insurance stocks followed the overall bullish trend at the Karachi Stock Exchange with more than 12.8 million shares traded together in life and non-life insurance stocks. Pak Reinsurance was the volume leader with 6.33 million shares followed by Adamjee Insurance with 4.93 million shares. Top gainers of the week include EFU Life Assurance which increased by Rs8.16 to close at Rs78.13 and EFU General Insurance jumped by Rs6.18 to close at Rs46.21 while Crescent Star Insurance by losing Rs1.69 to close at Rs3.3 and Reliance Insurance by falling Rs0.77 to close at Rs6.61 turned out to be the major losers of the week.

British firm Cooperative looks at life unit disposal LONDON: Britain's Cooperative Group could offload its life insurance arm as it reorganises its financial services division following last year's merger with Britannia, a source familiar with the situation said on Sunday. Mutually-owned Cooperative, which runs businesses ranging from supermarkets to funeral homes, has appointed Deutsche Bank to review options for the life arm including a possible sale. The society has sent information packs to potential bidders for the unit, which sells pensions and protection insurance and has 18 billion pounds ($28.25 billion) in assets, in an effort to gauge the level of buyer interest, the source added. Cooperative and Deutsche Bank both declined to comment. Potential suitors for the business include listed insurers Legal & General, Aviva, Resolution and Phoenix Group, as well as rival customer-owned insurer Royal London, the Mail on Sunday and Sunday Times newspapers reported. The review of Cooperative's life unit follows the Jan. 2009 merger between its financial services division, which also includes banking, asset management and general insurance operations, and Britannia, the UK's second-biggest building society.-Reuters

NEW YORK/HONG KONG: AIA, the Asian life insurance arm of AIG sold $17.9 billion (11.4 billion pounds) of shares in its Hong Kong IPO as investors clamoured for a company seen as a good way to buy into the world's hottest financial market. The pricing of the initial public offering, set to be the world's third biggest, comes as new listings proliferate in Asia. It puts an end to a long-running saga for American International Group, which tried and failed to sell AIA to Britain's Prudential earlier this year. AIG plans to use some of the proceeds of the AIA sale to pay back the roughly $100 billion it still owes the US government after its 2008 bailout. The successful IPO made AIG one of the top gainers among US insurance shares Friday, adding more than 1 per cent. Analysts said the sale was good for AIG's balance sheet, but the company still faces other difficulties, including the potential for future writedowns. AIA said on Friday that the IPO was priced at HK$19.68 each and that it exercised its option to boost the size of the sale. If the underwriters exercise the overallotment option, the IPO size would rise 15 per cent to $20.5 billion. AIA will start trading on October 29. "Investors did not dare to miss this jumbo deal as the market has ample liquidity and the sentiment is very strong," said Antonny Cheng, a fund manager at Gain Asset AIA has been in Asia for more nearly a century, and has a forecast pre-tax operating profit of $2 billion for 2010. Life insurance premiums in the Asia-Pacific region are forecast to grow by 12.3 per

cent a year through 2014, Sigma Swiss Re estimates, compared with flat to modest growth in other parts of the world. Still, expanding in China will not be easy. The mainland's top industry players dominate the market and foreign competitors are flooding in. AIA sold 5.86 billion of secondary shares and exercised its option to sell an additional 1.17 billion secondary. The IPO will value AIA at $30.5 billion, with AIG holding a 41.6 per cent stake that would drop to 33 per cent if it exercises an option to issue more shares. "It's more or less fully valued after the shares were sold at the top end," said Francis Lun, general manager with Fulbright Securities. "Still, one could expect a 5 per cent upside on debut." Unlike many other foreign insurers, AIA has 100 per cent ownership of entities in China, Indonesia, Malaysia, Thailand and Vietnam. AIA has more than 300,000 agents in Asia. Meanwhile a judge has held Maurice R Greenberg, the former chief executive of American International Group, liable for damages on a reinsurance transaction that the New York attorney general, Andrew M Cuomo, said helped the insurer hide losses. In a ruling, Justice Charles E Ramos of New York State Supreme Court also found Howard Smith, A.I.G.'s former chief financial officer, liable on the transaction, which involved an entity called Capco Reinsurance Company. The attorney general's office says the company hid more than $200 million in losses from an auto warranty insurance program.-Reuters

Tough rules okayed for US health insurance cos WASHINGTON: US state insurance commissioners unanimously backed tough rules requiring health insurance companies to direct more of the premiums they collect to medical care, rather than corporate salaries and profits. Although the percentages are mandated in the new healthcare law, insurers including Aetna Inc and WellPoint Inc sought looser definitions of some spending, arguing changes were needed for them to stay competitive. In a final vote on the recommendations, called for under the new law, the National Association of Insurance Commissioners (NAIC) on Thursday rejected most of the insurance industry's requests. NAIC's proposal moves early next week to the Department of Health and Human Services, which will decide whether to adopt the proposals as regulation or first make changes. By law, the changes must take effect by January 1. The Morgan Stanley Healthcare Payor Index was down 0.9 per cent in Thursday afternoon trading, compared with the broad S&P 500 Index which was up 0.1 per cent. Consumer advocates and Democratic lawmakers had argued for strict limits on the industry, which has come under fire for rising rates and denial of coverage. Under the law passed in March, large group health plans must allocate at least 85 cents per premium dollar to medical care, not administrative costs or profit. Plans for individuals or small groups must spend 80 cents per dollar. Such spending ratios, known as a medical-loss ratio, or MLR, have been closely watched by Wall Street as a sign of potential profitability. Under the law, customers could see rebates if insurers spend less than required on care. "This is placing on them some pretty stringent requirements," Kansas Insurance Commissioner Sandy Praeger, head of a NAIC working committee, said of insurers. The goal is to ensure that when individuals or employers buy coverage "that a good portion of that premium dollar goes to medical activities and is not just being used to enhance profits or enhance large salaries," she told reporters.-Reuters

Swiss watchdog to eye overseas banks GENEVA: Swiss regulators will keep an eye on banks and insurers to ensure they are complying with laws and regulations abroad, with the management of risks from cross-border business a part of their regular supervision. In a position paper presented in Geneva on Friday, Swiss financial market regulator FINMA told banks and insurers in the country they must know the rules abroad and take steps to mitigate or eliminate risks stemming from cross-border business. Should banks and insurers fail to take all necessary measures to ensure compliance with regulations in countries where they are doing business, FINMA could force them to act under current legislation. Swiss banks have come under heavy fire abroad as governments hunt down tax cheats, and Switzerland has had to soften its cherished bank secrecy, caving in to global pressure. The government and regulators have vowed to end the

country's history as a safe place for tax evaders and pledged to allow in only taxed money in the future. "Risks have always been there. But laws toughened in some countries while others simply decided to apply already existent laws in a more systematic way," said Urs Zulauf, General Counsel of the FINMA, at a media briefing in Geneva. The regulators also said they had to be informed immediately if a bank or an insurer faced legal troubles abroad. To end a damaging tax case, the Swiss government had to allow UBS to hand over to U.S. authorities the details of around 4,450 clients that UBS had helped to dodge taxes. In Germany, the government has paid for stolen data from Swiss banks to catch tax cheats and raided the German offices of Switzerland's No.2 bank Credit Suisse. The recent high-profile cases have highlighted the legal and reputational risks associated with

cross border-business, banks and insurers must thoroughly assess their operations and the risks attached, FINMA said. "Appropriate measures to mitigate or eliminate risk must also be taken," the regulatory body said. "FINMA expects institutions to take due account of foreign supervisory legislation in particular and to define a service model appropriate for each individual target market," the regulator said. In some cases, banks or insurers may have to change their strategy as a consequence of the risk assessment, FINMA said. "Institutions may decide to dispense with cross-border services in certain target markets, or the provision of services to certain categories of clients, and to adjust their business models accordingly," FINMA said. Many Swiss banks have decided for risk-related reasons to stop doing business with certain categories of US clients or to at least discontinue some services to them.-Reuters

F1 driver Alonso jumps as he celebrates after winning the South Korean GP

Monday, October 25, 2010

BCCI silenced over Rainaâ&#x20AC;&#x2122;s bookie-links

American swimmer dies in WC race NEW YORK: US open water swimmer Francis 'Fran' Crippen, a world championship bronze medallist, died during a Marathon Swimming World Cup 10km event in the United Arab Emirates on Saturday, world governing body FINA said. Crippen, 26, won a 10km bronze medal at the 2009 world championships in Rome and a 5km bronze at the world open water championships in Canada this year. "While the causes of this death remain under investigation, FINA and the entire aquatic community address, in this moment of grief, their deepest and sincere condolences to his family, friends and to US Aquatic Sports and the USA Swimming family," FINA said in a statement. Crippen, who won two US titles in the pool in the 800m freestyle before switching to open water in 2006, died during the last leg of the World Cup event in Fujairah, FINA said. On his Facebook page, Crippen posted a message on Thursday saying he was "in Dubai for the final World Cup of the season and then off to Italy for vacation!" SWIMMING FAMILY Crippen, who was hoping to become the first US medallist in open water swimming at an Olympic Games in 2012, came from a family that is well known in the swimming world. His oldest sister, Maddy, competed in the Sydney Olympics in 2000 while younger sister Claire was an All-American at the University of Virginia. Another younger sister, Teresa, swims for the University of Florida and the U.S. National team. "Fran was a champion swimmer but, more importantly, a tremendous person, and he will be remembered for so many extraordinary qualities," USA Swimming said in a statement. The United States Olympic Committee (USOC) said in a statement it was saddened to learn of Crippen's death. "While details of this tragedy are still forthcoming, we shall keep this outstanding young athlete and his family in our thoughts and prayers."-Reuters

Monitoring Desk KARACHI: The International Cricket Council (ICC) AntiCorruption and Security Unit is probing why the Board of Control of Cricket in India (BCCI) kept quiet about a report of its player Suresh Raina being seen in the company of a woman linked to an associate of an illegal bookmaker. Making it clear that Raina was not suspected of any wrongdoing, a senior ICC source, was quoted as saying the incident was related to India's tour of Sri Lanka earlier this year. CCTV cameras installed at the Indian team's hotel showed that on more than one occasion Raina was in the company of a

woman known to be an associate of a man allegedly linked to a bookmaker. A report, including the CCTV footage, was submitted by the Sri Lankan Cricket Board to their Indian counterparts. With the heightened security concerns following the 2009 terrorist attack on the Sri Lankan team in Pakistan, the Sri Lankans deputed a former general to look after the Indian team. According to the newspaper report, it is the reaction of the BCCI secretary N Srinivasan that has led to the ICC investigation. Instead of acting on the report, Srinivasan is alleged to have asked the Sri Lankans to withdraw it.

GOA: Grounds men remove a rain tarp during a delayed start of the last one-day international match between India and Australia in Margao.-Reuters

India claims series win over Aussies MARGAO: The third and final one-dayer between India and Australia on Sunday was called off after steady rain over the past two days waterlogged the outfield, handing the hosts a 1-0 series win. Australia, the number one ranked ODI side in the

world, ended their disappointing tour of India losing both the test and one-day series. India swept the test series 2-0. The series had lost some sheen with top cricketers from both teams, including Sachin Tendulkar and Ricky Ponting, giving it a miss.

The first match in Kochi last Sunday was also called off due to rain. India's fivewicket win on Wednesday decided the outcome of the series. India next host New Zealand for a three test and five match ODI series, starting next month.-Reuters

Asif buys time to prepare appeal KARACHI: Pakistan pace bowler Mohammad Asif said on Saturday he had withdrawn his appeal against a suspension for alleged spot-fixing next week in order to give his lawyers more time to prepare a detailed challenge. Asif, Mohammad Amir and Salman Butt have been suspended by the International Cricket Council (ICC) after an investigation into a newspaper report that they had deliberately arranged for no-balls to be

delivered in the fourth test against England at Lord's last August. On Friday the ICC said Asif had withdraw his appeal and arrangements were now being made for test captain Butt and fast bowler Amir to challenge their suspensions in Dubai on Oct 30 and 31. "I decided to withdraw the appeal against the suspension for now since we got the detailed documents relating to the case late from the ICC and

my lawyers need more time to prepare for a detailed challenge," Asif told Reuters. Asif said he had done nothing wrong and would eventually contest both the suspension and the spot-fixing allegations. "I am innocent," he said. Butt told Geo TV Asif's decision to withdraw his appeal would not affect his challenge. "I have no intentions of withdrawing my appeal. I have done nothing wrong and this suspension means loss of valuable cricket time for me and I will challenge it," Butt said. He said he remained optimistic that the ICC would remove the suspension at the forthcoming hearing. "I am clear in conscience as I have done nothing wrong. The onus of proving their allegations against me is now on the accusers," Butt said. British police are also investigating the spot-fixing allegations against the trio who have denied any wrongdoing.-Reuters

SLâ&#x20AC;&#x2122;s only CWG gold turned down COLOMBO: Sri Lanka's only gold medallist at this month's Commonwealth Games, boxer Manju Wanniarachchi, has tested positive for a banned steroid, a report said Sunday. The privately run Lakbima News newspaper said Wanniarachchi, 30, who had brought home the island's first Commonwealth boxing gold in 72 years, had tested positive for the performance-enhancing steroid nandrolone. The paper said the Commonwealth Games organizers had sent a report to Sri Lanka's National Olympic Committee and informed the boxer of the result with his urine "A" sample. There was no immediate confirmation from the committee or Sri Lanka's sports authorities. Wanniarachchi had beaten Welshman Sean McGoldrick in the final round of the Bantamweight category to clinch the gold. The boxer can request a "B" sample test. If the outcome remains unchanged, he risks being stripped of his gold medal and could face a two-year ban from all competition. Sri Lanka also won one silver and one bronze medal for boxing and weightlifting during the October 3-14 Delhi games.-APP

Alonso wins F1 Korean circuit YEONGAM: Ferrari's Fernando Alonso won a rainhit and chaotic Korean Grand Prix to seize back the Formula One world championship lead on a nightmare Sunday for his Red Bull rivals. In an inaugural race that turned out to be one of the longest in Formula One history -- delayed by a downpour, started, stopped and then re-started behind the safety car after a 48 minute wait before ending almost in the twilight -- the Spaniard could scarcely believe his good fortune. With two races to go, and a maximum 50 points to be won under the new 25-18-1512-10-8-6-4-2-1 scoring system, Alonso celebrated his fifth win of the year to turn a

14-point deficit into an 11point lead over Red Bull's Australian Mark Webber. Webber crashed out early on, handing the championship baton to team mate Sebastian Vettel before the German suffered an agonising engine failure nine laps from the end while leading. McLaren's 2008 champion Lewis Hamilton finished second, 14.9 seconds behind, and moved up to third overall with 210 points, 21 behind Alonso. Brazilian Felipe Massa took the final podium place for Ferrari. Vettel fell to fourth on 206 points with McLaren's reigning champion Jenson Button finishing 12th. The Briton is now 42 points off the lead and effectively, if not mathematically, out of the title equation.-Reuters

Federer wins in Stockholm STOCKHOLM: World number two Roger Federer overcame an early break of serve to defeat Croatian Ivan Ljubicic 7-6 6-2 in the semi-finals of the Stockholm Open on Saturday. The Swiss will meet German Florian Mayer, who beat Finland's Jarkko Nieminen 4-6 6-4 7-6, in Sunday's final. The big-hitting Ljubicic started strongly before Federer broke back to take the first set on a tie-break. He then gained an early advantage in the second when a lucky bounce off the net cord helped him convert a break point.

"It was mentally very difficult to deal with that," Ljubicic told Swedish TV. Federer said he had enjoyed a slice of luck but added he had felt his opponent had tried to force his game too much and had started to make too many errors. "(In the first set) I had a tough service game that didn't really work well. I missed a couple of shots, next thing you know you're down break point. "I missed another stupid forehand because I was still lacking rhythm and that's how it goes against big servers.-Reuters

Chelsea keep lead, breaking club record LONDON: Goals by Florent Malouda and Salomon Kalou and a club record eighth consecutive home clean sheet helped Chelsea open a five-point lead in the Premier League with a 2-0 win over Wolverhampton Wanderers. Malouda struck his seventh league goal of the season and Kalou came off the bench to seal victory after the break for Carlo Ancelotti's side whose early-season torrent of goals has slowed to a trickle in recent weeks. Tottenham Hotspur rose to third, seven points behind Chelsea, after Dutchman Rafael van der Vaart made it five goals in seven since joining the north London club. The midfielder notched the equaliser in a 1-1 draw at home to improving Everton. West Bromwich Albion continued their dream start to life back in the

top flight, moving into fourth place with a 2-1 home defeat of Fulham while Birmingham City beat Blackpool 2-0. Sunderland edged Aston Villa 1-0 and Wigan Athletic's home match against Bolton Wanderers ended 1-1. West Ham United stayed bottom after a 2-1 home defeat by Newcastle United. Second-placed Manchester City can reduce Chelsea's lead on Sunday when they host Arsenal while Manchester United, down in sixth spot, end their turbulent week at Stoke City. Liverpool are also at home against Blackburn Rovers on Sunday. Chelsea were not the fluent force that racked up 21 goals in their opening five league matches but were watertight at the back against Wolves. It took them 23 minutes to break

through against a lively visiting side and it was not until the 81st minute that Wolves were finally subdued. "It was a tough game because we didn't play so well," Ancelotti told reporters. "We suffered from some dangerous situations in the first half and in the second half we conceded too many shots from distance. "We could have closed the game before the second goal, we had a lot of chances, but we didn't play as well as we usually do." ANELKA ENTERPRISE The opening goal owed much to the enterprise down the left of Nicolas Anelka. He played in Yuri Zhirkov and the Russian pulled the ball back into the path of Malouda who was unmarked eight metres out. Chelsea have not conceded a league goal at home since March but Wolves came close to breaching the

Blue wall on several occasions, most notably when Stephen Hunt's header was cleared off the line by Michael Essien. Kevin Doyle also forced keeper Petr Cech to save a low shot and there was a growing sense of unease in the crowd before Kalou made it 20 after Essien and Didier Drogba linked up well. Ancelotti picked out right back Jose Bosingwa for special praise after the Portuguese made his first league start for a year following a serious knee injury. "Bosingwa was one of the best players on the pitch," said the coach. "He put a lot of pressure on in the second half by pushing up without the ball and he had opportunities to score. "He played very well and he is an important player for us in the future."-Reuters

LONDON: Chelsea's Drogba challenges Wolverhampton Wanderers' Stearman during their English Premier League soccer match.-Reuters

Analysis & Feature

Monday, October 25, 2010

SARKOZY AIMS TO TURN PAGE FROM PENSION BATTLE

l Sarkozy scores a victory as Senate passes pension bill l Cabinet reshuffle and G20 presidency will be new focus l Unions scorn reshuffle and tax plan as diversion tactics

is ratings are in tatters and most of France loathes his pension reform, but President Nicolas Sarkozy hopes to turn the page swiftly with a cabinet reshuffle and some image-boosting initiatives as G20 president. Facing a tough 2012 election battle to win a second term, Sarkozy will score points internationally, with financial markets and in his centre-right UMP party for standing up to unions to push through a reform of the generous pensions system. The bill to make people work two extra years for their pensions to stem a growing funding shortfall should be signed into law this week after Senate approval on Friday, ending a historic Socialist symbol of retirement at 60. Unions vow to continue the fight and have called for strikes and demonstrations in the next two weeks. A single spark such as an incident of police brutality could still reignite a national conflagration. To overcome dismal opinion polls and lingering protests, the president aims to start afresh with a new cabinet and a tax overhaul aimed at wooing mainstream centre-right voters and bolstering his chances against a more popular left. "Social cohesion is a priority. The new government's mission must be a social revival and trying to rebuild that perspective with the trade unions," former prime minister Jean-Pierre Raffarin, a conservative close to Sarkozy, told RTL radio. He called for progress in

areas such as equal pay for men and women, improving working conditions and helping people in arduous work. The energetic president is expected to switch several key ministers in November when he returns from a Seoul summit of the Group of 20 economic leadership forum, including possibly the prime minister and those in charge of labour, transport, foreign affairs and budget. Raffarin, tipped for a possible comeback in a smaller, more focused cabinet, cited Environment Minister Jean Louis Borloo as a potential prime minister with good ties to the trade unions. Commentators say another former prime minister, Alain Juppe, may also get a senior role to add weight to the government. ACTIVIST DIPLOMACY Mid-November also marks France's takeover of the G20 presidency. Sarkozy hopes that will give him influence on hot global issues such as exchange rates and commodities speculation that will enhance his image, just as activist diplomacy during France's European Union presidency boosted his ratings in 2008. The biggest coup he could achieve would be coaxing a hitherto reluctant China into multilateral cooperation on currency stability, an objective he hopes to advance when Chinese President Hu Jintao visits France in early November. Sarkozy has also told members of parliament he wants to look at a fiscal reform in the spring that is expected to focus on ending widely criticised tax

benefits for the wealthy which he enacted to reward core supporters as soon as he took office. The so-called "tax shield" which ensures that no one pays more than 50 per cent of their income to the treasury helped earn Sarkozy the damaging label of "president of the rich" in a deeply egalitarian country which abhors the flaunting of wealth. Ministers have hinted at a possible package deal in which the tax shield goes in return for changes to a wealth tax, which has driven many millionaires into exile but also hit a growing number of middle-class households as house prices rise. A burst of diplomacy, outreach to the unions and tax reform may help Sarkozy draw a line under a long series of protests and oil refinery and transport strikes that have disrupted travel and dried up a quarter of petrol pumps across the country. "He's so low in the polls that he can't go much lower. In a sense it's an advantage," remarked political analyst Stephen Ekovich at the American University of Paris. CROWD-PLEASING REFORMS? Hurt by a funding scandal involving his centre-right UMP party and stung by European criticism of his mass expulsion of illegal Roma migrants, Sarkozy's ratings dipped below 30 per cent in one recent poll. Two-thirds of voters oppose his move to lift the minimum retirement age by two years to 62 and the often vitriolic street protests of recent weeks sug-

gest Sarkozy will have a hard time reconquering public support. Yet the mercurial president is known for bouncing back from adversity. Analysts expect him to focus on crowdpleasing initiatives aimed at both far-right and centrist voters for the last 18 months of his term. Nationalist gestures might include fighting for EU farm funds or more immigrant-targetted legislation like

his law banning burqas. Sarkozy may also glean more support on the right for having taken a firm stance against strikers blocking fuel depots and youths who went on the rampage in sporadic riots. "I think he's actually doing okay in all this conflict," said Jean-Thomas Lesueur, head of the economically liberal Institut Thomas More thinktank which follows Sarkozy

closely. "It's worked in his interest to take on the unions and let the situation deteriorate to the point where discontent mounts and he can say: look, I am fighting this nuisance." Sarkozy has stuck fast to his line that his reform is the only way to safeguard France's payas-you-go pension system and protect a coveted AAA credit rating which enables France to finance its large debt at lowest

market rates. Many observers think this week's half-term school holidays could suck the momentum out of two more nationwide protests planned for Oct. 28 and Nov. 6. "As soon as (the law) is approved, the end-of-match whistle is blown. The demonstrations will fade away," said Jerome Fourquet, deputy director at pollster IFOP. Reuters

G20 nod to FX may help risk assets but Fed still key l Risk assets may benefit from G20 l Fresh Fed action still in spotlight l No new drivers for oil

opper, oil and other growth-linked commodities may benefit this week from the G20's hardened stance towards exchange rates, but anticipation of more US policy easing is likely to remain in the spotlight. The Group of 20 major economies agreed on Saturday to shun competitive currency devaluations but stopped short of setting targets to reduce trade imbalances that are clouding global growth prospects. This consensus could prove positive for risk assets, although the meeting yielded no major policy iniative and nothing close to the grand bargain in which participants would agree to allow their currencies to appreciate that some more optimistic mar-

ket watchers were hoping for. "There's some token partnership in working together, but there's nothing formal that's going to change the amount of liquidity," said Patrick Armstrong, a fund manager with Armstrong Investment Managers "The same forces that have been driving commodities up over recent months will remain and countries will continue with short-term thinking about trying to give themselves competitive advantages." For the commodities complex, much will depend how the outcome of the G20 is viewed by the foreign exchange markets. The possibility of an all-out currency war that could, in turn, have triggered greater

protectionism and further weighed on global growth, seems to have been averted for now, which could embolden investors to take on more risk at the expense of perceived safe havens such as gold. QE2 IN FOCUS But the prospect of massscale bond purchases that most expect the US Federal Reserve to detail at its next policy meeting on Nov. 2 and 3 could prove a more powerful driving force for the markets. "There are fundamentals of supply and demand in various of these base metals, but what's really driving the markets these days is what the dollar is doing," said Gary Mead, an analyst with Virtual Metals. "I'm afraid I take a rather dim view of these meetings any-

way. I think they are generally quite promising ... and then don't translate into any hard action," he said. "Everybody expects ... the US to do its second round of quantitative easing, so the question is to what extent that expectation is going to drive things, much more than what the G20 says." Gold is now around 4.5 per cent below the record high struck at $1,387.10 an ounce on Oct. 14 after the US dollar rose last week for the first time in five weeks. Yet the price is still on track for a 21 per cent gain this year, largely as a result of investor concern over the European sovereign debt crisis, slowing US growth and the risk of China's economy overheating. The gold price ended last

week with a 2.3 per cent loss, marking its first week of decline since early August as the strength in the dollar eroded investor appetite for nonyielding assets and other dollar-priced commodities. Virtual Metals' Mead said copper could build on Friday's gains, supported by evidence of demand continuing to outpace supply. This tighter fundamental backdrop coupled with the recent weakness in the dollar has pushed London Metal Exchange copper futures to their highest in over two years. Three-months LME copper futures ended last week with a 0.8 per cent loss at $8,334 a tonne. NOD TO EMERGING POWER At the meeting in South

Korea, G20 finance ministers recognised the quickening shift in economic power away from Western nations by inking a surprise deal to give emerging nations a bigger voice in the International Monetary Fund. Raw materials such as copper and oil depend heavily on demand from emerging economies, and in particular China, the world's top consumer of a number of key commodities. "There was not that much expected out of it. There was always a risk of it bringing a surprise and they managed to provide a surprise with the IMF (two seats)," said Olivier Jakob, an analyst with Petromatrix. "That's a surprise, but it does not really do anything to trad-

ing the dollar next week," he said, adding: "Oil market supply and demand are relatively well-balanced. It's going to be difficult for crude oil to move higher if there is not continued support from the correlation with the dollar." International benchmark US crude oil has traded in a mostly $70-$85 range all year. It began rising towards the top of that range in September and this month hit five-month highs above $84 a barrel in response to expectations of further quantitative easing and a falling dollar. Analysts say without the dollar effect, the market would have been under pressure from high levels of inventory in the United States, the world's biggest oil burner. -Reuters

Coal India IPO likely at 245 rupees per share T

l Final decision by ministerial panel on Monday l Values Coal India at discount to global peers l IPO had been covered more than 15 times by close

he Indian government is likely to price state run Coal India's initial public offering at the top end of the price range, raising about $3.5 billion, four sources with direct knowledge of the matter said. A panel of ministers will finalise the offer price late on Monday, the sources, who declined to be identified, said. India is selling stakes in some 60 firms over the next few years, and the strong appetite for Coal India contrasts with the sluggish

demand for some of its recent offerings and adds pressure on the government to price future deals attractively. Coal India's IPO, the largest in the country's history, was subscribed more than 15 times by close on Thursday, with most bids at the top end of the 225 to 245 rupees price range. Individual investors and Coal India staff will get a five per cent discount on the offer price. At this price, Kolkata-based Coal India, which accounts for nearly 80 per cent of coal out-

put in Asia's third-largest economy and is the world's largest coal miner, would be worth $35 billion, ranking it seventh among India's listed firms. Its shares will begin trading on Nov 4. The government sold 631.6 million shares in the IPO, which received robust response from investors seeking exposure to an economy growing at 8.5 per cent. The institutional order book was heavily oversubscribed, with orders worth $27 billion from foreign investors. Those funds poured in on top of

record flows from overseas into Indian stocks this year that recently pushed the rupee to a 25-month high. A Reuters poll of fund managers had expected the IPO to be priced around 250 Indian rupees a share, with most of those surveyed keen to invest in the Indian miner. Coal India's IPO will surpass Reliance Power's $3 billion listing in 2008 as India's largest new issue, and comes to market amid a flurry of big deals in Asia. ON TRACK FOR

GROWTH A dominant position in a country that is heavily reliant on coal-fired power and a valuation considered attractive relative to peers has made Coal India a near must-own for investors. Demand for coal is forecast to grow 11 per cent a year in India, which aims to halve its peak-hour power deficit of nearly 14 per cent over the next two years and triple its generation capacity over the next decade. Coal India expects profits to rise by a

quarter this fiscal year, helped by rising demand, and has set aside $1.2 billion for overseas acquisitions in the year to March 2011. It is currently evaluating proposals to buy stakes in coal firms in the US, Australia and Indonesia. It reported earnings per share of 15.60 rupees for the fiscal year ended March 2010 and would be valued at 15.7 times trailing earnings at the offer price. China's Shenhua Energy, the Indian miner's closest rival, trades at 16 times earnings, while smaller Indonesian peer

Adaro Energy has a ratio of 20 times. US miner Peabody Energy trades at 25 times earnings. Local and foreign brokerages estimated that Coal India could see upside of roughly 30 per cent from its IPO valuation range, given its lower earnings volatility, a large undeveloped resource base and potential to increase prices. Morgan Stanley, Citigroup, Kotak Mahindra Capital, Enam Securities, Deutsche Bank and Bank of AmericaMerrill Lynch are managers on the offer. -Reuters

International & Continuation

Monday, October 25, 2010

China breaks up anti-Japan protests

TAIWAN: Soldiers survey a damaged bus on Highway No 9, after it was damaged by landslides caused by Typhoon Megi, in north-eastern Taiwan.-Reuters

Iran says some academic courses too “Western” TEHRAN, Oct 24 (Reuters) - Iran will not allow its universities to begin teaching certain disciplines it deems too "Western", and existing courses will be revised, a senior Education Ministry was quoted as saying on Sunday. "Expansion of 12 disciplines in the social sciences like law, women's studies, human rights, management, sociology, philosophy....psychology and political sciences will be reviewed," Abolfazl Hassani was quoted as saying in the Arman newspaper. "These sciences' contents are based on Western culture. The review will be the intention of making them compati-

ble with Islamic teachings." Hassani said Iranian universities will not be allowed to open new departments in these disciplines and the curricula for existing departments would be revised. Iran's hard-line rulers accuse the West of trying to harm the Islamic state by influencing the country's young generation with "decadent" culture. Pointing to the enrolment of some 2 million out of a total of 3.5 million university students in the humanities, in August Iran's most powerful figure Ayatollah Ali Khamenei called for modification of these studies. "Many disciplines in the

Shi’ite group wins 18 seats in Bahrain poll

humanities are based on principles founded on materialism disbelieving the divine Islamic teachings," Khamenei said in a speech reported by state media. "Thus such teachings...will lead to the dissemination of doubt in the foundations of religious teachings." Access to the Internet and illegal satellite television mean Western popular culture is king among young Iranians, a vital constituency in a country where 70 per cent of the population is under 30 and has no real memory of the 1979 Islamic revolution which toppled the US-backed Shah.Reuters

Saudi payout eases Palestinian funding crisis: Fayyad RAMALLAH: A pledge of $100 million from Saudi Arabia and other international aid is easing the Palestinian Authority's (PA) financial crisis, Palestinian Prime Minister Salam Fayyad said on Sunday. The PA is relying on help from foreign backers to plug a budget deficit projected at $1.2 billion for 2010. The slow arrival of funds, especially from Arab states, has forced Fayyad to take austerity measures. At a Sept. 20 donors' meeting in New York, Fayyad said the PA needed $500 million to meet its funding shortfall for the year. Speaking to Reuters on Sunday, he said there had recently been progress,

including a $40 million World Bank grant. Saudi Arabia told the PA on Sunday that it was about to transfer $100 million "in addition to other commitments it had made to the PA treasury", Fayyad added. Slow disbursal of funds pledged by Arab states has been the main cause of the financial squeeze. No explanation has been given for the payment delays. Gulf oil exporters Saudi Arabia and the United Arab Emirates have been the PA's main Arab backers in recent years, according to official figures seen by Reuters in August. The figures showed that, as of August, payments from those states in 2010 had been well below previous

years. Donor support has been one of the main drivers of economic growth in the Israel-occupied Palestinian territories. Real economic growth in the West Bank and the Gaza Strip is forecast at 8 per cent in 2010, compared with 6.8 per cent in 2009, according to the International Monetary Fund. Salaries paid to around 150,000 PA employees are a major support for the economy. They include some 67,000 people in the Gaza Strip, where the Westernbacked adminstration has continued to pay wages to people it employed when the Hamas group seized control in 2007.-Reuters

MANAMA: Bahrain's main Shi'ite opposition group won almost half the seats in Bahrain's parliament on Sunday, although the gains are expected to have limited impact in the Sunni-run state where the assembly has little clout. The Gulf Arab country's Shi'ite opposition group Wefaq won all the 18 seats it contested, out of a total of 40, election officials announced as they read out results from Saturday's poll. It held 17 seats in the outgoing assembly. The result was expected as the districts the group contested consisted mainly of Shi'ite populations. The opposition says the government has apportioned districts to prevent the Shi'ite opposition from gaining a majority in the assembly. The run-up to the vote was overshadowed by a broad security crackdown against some Shi'ite opposition groups in August that also targeted bloggers and human rights activists. Bahrain, home to the US Fifth Fleet, has a Shi'ite Muslim majority population but is governed by the Sunni al-Khalifa dynasty, which allies Saudi Arabia and the United States see as a bulwark against the regional influence of Shi'ite power Iran. Sunni groups allied to the government, Al Asalah and Al Menbar, as well as independents, were also contesting. The two Sunni Islamist groups Al Asalah and Al Menbar that held a combined 15 seats in the outgoing assembly looked set to lose some of their seats to independents as they only won three seats directly, with another seven of their candidates having to enter a second round of voting next Saturday. The justice ministry said turnout was 67 per cent of eligible voters, down from 72 per cent in 2006. Bahrain's parliament has limited powers as its bill need to pass an upper house whose members are appointed by the king. Ultimate power in the country rests with the ruling family.Reuters

LANZHOU: Chinese police on Sunday broke up protests against Japan in the northwestern city of Lanzhou over a territorial dispute that has stoked tensions between Asia's two biggest economies. The protest, by about 200 people who were calling for a tougher line by their government against Japan, followed similar demonstrations by thousands of Chinese and Japanese last week that centred around the status of islands claimed by both nations. In a sign that the two governments are to a certain extent trying to defuse tensions, their foreign ministries exchanged statements encouraging cooperation over the past two days. Chinese foreign ministry spokesman Ma Zhaoxu noted a statement by Japanese Foreign Minister Seiji Maehara that they should strive to improve ties. "We expect Japan to work with us in joint efforts to maintain and advance the strategic bilateral relationship of mutual benefit," Ma said in a statement posted

on the ministry's website on Saturday. Along with a long-standing dispute over a chain of islands in the East China Sea, Japan is also worried that China has started holding back shipments of rare earth metals, vital in the manufacturing for electronic goods and auto parts. Japanese Trade Minister Akihiro Ohata on Sunday told Jiang Yaoping, a Chinese vice commerce minister in Tokyo for a forum, to stop restricting rare earth exports, Japan's Kyodo news agency reported. China has denied cutting shipments to Japan for political reasons, and says it restricts overall production and exports of rare earths to avoid depleting its reserves and causing harm to the environment. In the demonstration in Lanzhou, the crowd of mainly students gathered in the city's central square and marched about two kms (1.2 miles), unfurling banners and demanding a boycott of Japanese products, before police in riot gear halted them. There was no violence.

Somali pirates hijack LPG tanker MOGADISHU: Somali pirates have hijacked a Singapore-flagged liquified petroleum gas (LPG) tanker off the coast of east Africa, the European Union anti-piracy taskforce and a regional maritime official said on Sunday. Andrew Mwangura of the East African Seafarers' Assistance Programme said the pirates seized the Greek-managed MV York off Kenya on Saturday afternoon, less than 12 hours after it sailed out of the Kenyan port city of Mombasa. The European naval force, EU Navfor, said the vessel had a crew of 17, including a German master, two Ukranians and 14 Filipinos, and was seized 50 miles (80 kilometres)

from Mombasa. "She was taken at 1730 local time. She was sailing empty after discharging her LPG cargo a the Shimanzi oil terminal in Mombasa," Mwangura told Reuters. A pirate who identified himself as Hassan told Reuters by telephone that the tanker was now heading for Garad, a pirate base on the coast of central Somalia. A lack of effective central government in the lawless Horn of Africa nation has allowed piracy to floursih off its shores. Somali pirates are holding 19 vessels with 428 hostages. Typically they earn a ransom for their release. The vessel has a deadweight of 5,076 tonnes. -Reuters

Egypt arrests 55 Sudanese headed to Israel-sources CAIRO: Egyptian police found 55 Sudanese migrants hidden in a container on a truck heading into the Sinai region, where they planned to cross the border into Israel, security sources said on Sunday. The migrants, 40 men, nine women and six children aged as young as four, were arrested at a checkpoint near the entrance to a tunnel under the Suez Canal separating Sinai from the rest of Egypt, the sources said. The driver told police he had

smuggled them from a mountainous area in Egypt's eastern Red Sea region after striking a deal with a people trafficker in Sinai. The migrants were exhausted after three days on the road and the children were taken to a hospital in the city of Suez, the sources said. The route through Sinai to Israel is a common target for African migrants fleeing poverty or conflict and seeking work or asylum in Israel.-Reuters

"We want to boycott Japan. Little Japan, return our China, return our Diaoyu islands," a university student surnamed Li said. Sino-Japanese relations have been on edge since last month after Japan detained a Chinese trawler captain whose boat collided with Japanese patrol ships near the disputed islands -called Senkaku in Japan and Diaoyu in China. A smaller group of about 100 people reassembled for a second protest in Lanzhou after the first was broken up. Students dragged the Japanese national flag through the mud and stamped on it. A young woman ripped another flag with her teeth to the cheers of onlookers. Dozens of police soon arrived and dispersed the crowd. In a separate demonstration in Baoji, Shaanxi province, anti-Japan protesters also turned their anger against the Chinese government, Kyodo reported. It said that marchers carried banners decrying corruption and high housing prices.-Reuters

Hurricane Richard heading for Belize TEGUCIGALPA: Hurricane Richard formed in the Caribbean on Sunday and bore down on Belize on a track that could take it and into the energy-rich Gulf of Mexico, the US National Hurricane Center said. Richard, packing maximum sustained winds of 85 miles per hour, was located about 95 miles east of Belize City, although the storm continued to dump rain on Honduras. Richard was expected to barrel through southern Mexico and emerge in Mexico's oil-rich Bay of Campeche on Tuesday as a tropical depression, the US National Hurricane Center said. Richard was the 10th hurricane of the busy 2010 Atlantic storm season. Five of those hurricanes have been major, but the United States has escaped a significant landfall so far. Richard might eventually veer north toward US oil and natural gas production facilities in the Gulf of Mexico, according to forecasts by some computer weather models. Honduran authorities evacuated residents and tourists from several coastal areas as the storm brushed its coast, said Randolfo Funez, an emergency response official. Richard was moving westnorthwest at 12 mph and was expected to strike Belize and southeastern Mexico later on Sunday, the Miami-based hurricane center said. Mexico started evacuating fishermen on the Yucatan peninsula on Saturday.-Reuters

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January next year, as the world's top two economies seek a way to sort through a host of disputes. Beijing has bristled at criticism from Washington about the value of the Chinese yuan, which some lawmakers have charged is undervalued by as much as 40 per cent, giving Chinese exporters an unfair trade advantage. The US trade deficit with China ballooned to a new record in August, sharply widening the overall trade gap, according to official US data released this month. -Reuters

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Shaukat Aziz Bhatti, Samina Khawar Hayat, Ejaz Ahmad, Sohail Kamran, Farah Deeba, Badshah Khan Qaisarani, Safdar Gul and Saima Aziz. Sindh MPA, Mukesh Kumar, and Baloch MPA Yar Muhammad Rind, have also been summoned. -Online

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unemployment through faster, job-creating growth in the emerging markets," Ahmed added. For the MENAP oil exporters, economic activity is picking up considerably, the IMF said, adding that crude oil production was projected to grow to 25 million barrels per day in 2010 and 26 million in 2011 because of a pick-up in global demand. The rise in oil prices by 23 per cent in 2010 and more than 3 per cent in 2011 would lead to a marked turnaround in external balances, the global lender said. The IMF expects Saudi Arabia's GDP growth of 3.4 per cent in 2010 and 4.5 per cent next year, and for the United Arab Emirates to grow by 2.4 per cent and 3.2 per cent respectively, repeating forecasts from its World Economic Outlook earlier this month. -Reuters

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and focused tour of Pakistan. To a question, he said Pakistan has a exert enough military pressure to force the Taliban and other very clear energy policy and has expertise of thirty five years safe operation of civilian nuclear technology. He said the United States should militants to the negotiating table to end the war. Petraeus said last week "there have been several very senior not do discriminatory policy but should treat Pakistan equally to India Taliban leaders who have reached out to the Afghan government and should provide us with civilian nuclear technology. About a quesat the highest level, and have also in some cases reached out to tion on North Waziristan, Foreign Minister said that our forces have made successful operations and have consolidated their positions. other countries engaged in Afghanistan." Foreign Minister said that if United States wants peace in the "These discussions to this point can only be characterised as preliminary in nature," said Petraeus, who was in London to meet region then it has to play its role for the resolution of the long with Prime Minister David Cameron and defense ministry coun- standing Kashmir issue, added otherwise there will be a question terparts. "They certainly cannot be characterised as negotiations, mark on the peace and on the working of the Saarc, if this vital he added.-Online important issue is not being addressed.

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Rs19 billion was for PSPD. It is pertinent to note that Prime Minister Syed Yousuf Raza Gilani had always claimed that health was on priority list of government's programs. -Online

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Contrary to this, biggest weekly selling was witnessed from the banks, selling $25.74 million worth of shares in the local bourse against buying of $20.9 million, thus ejecting on net basis of $4.83 million. Moreover, NBFC, other organisations and local individuals also sold their positions worth $3.09 million, $1.9 million and $0.27 million respectively on net basis.

No #8

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generation would have to come forward for technical education. He said a conspirator group is doing media trail against President Asif Ali Zardari and other party leaders, however they would not be succeeded in its aims. Commenting on the target-killing of Karachi, he stated that all the political parties including MQM, ANP and PPP decided to take stern action against people involved in target killing incidents. Earlier the CM inaugurated Sachal Yadgar Committee at DCO office Khairpur. -Agencies

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Diplomatic sources told UK home secretary will hold talks with her Pakistani counter part Rehman Malik on a range of issues including terrorism, drug trafficking, legal matters, accord on exchange of criminals and security matters. Certain crucial decisions are likely to be taken during these talks for restarting strategic dialogue in anti terrorism and security related fields. These dialogues were held during the erstwhile labor party led government. British home secretary during her stay will meet President Asif Ali Zardari, Prime Minister Syed Yousuf Raza Gilani, political leadership and other functionaries. The members of UK foreign affairs committee will also accompany her and they will hold talks with Pakistan foreign affairs committee on October, 26. -Online

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Geithner in China to walk trade talk

QINGDAO: Chinese Vice Premier Wang Qishan, right, meets with US Treasury Secretary Timothy Geithner, in Qingdao. -Reuters

New budget to be pro-masses: Awan LAHORE: Federal Law Minister Babar Awan Sunday said that the next budget would be the budget of masses and government would provide relief to the poor segments of the society. Talking to media persons at Lahore airport, federal law minister said Punjab government should pay attention to dengue virus instead of political virus, adding the former could catch mosquitoes, if not the absconders. Replying to a question about the interim short order by the Supreme Court regarding the judges' appointment issue in 18th amendment, the minister said "the SC orders are being implemented in letter and spirit and the government would assist the apex court and bars in the formation of judicial commission, which would be set up soon". When asked for his take on the court ruling, he said "I would speak on it in the Parliamentary

Committee for Constitutional Reforms (PCCR) meeting, scheduled to be held on November 1. About Safdar Abbasi's party membership suspension, the minister said that nothing such happened. "Public has no interest in the political cases, they just want the rulers to address their grievances", Babar maintained. He also called upon Punjab Chief Minister Shahbaz Sharif to treat his allies in the same way as he treats his party MPAs. Federal Law and Parliamentary Affairs Minister Babar Awan has said that during the coming sessions of the National Assembly and Senate the process of legislation would be geared up. To a question about the dengue virus spread the minister said a task force doctors and elected representatives should be made to control this disease and make efforts to control the industrial waste. -Agencies

Peace in Afghanistan not easy: Holbrooke

Kabul-Taliban talks still a far cry WASHINGTON: US special representative for Afghanistan and Pakistan, Richard Holbrooke said recent links between Afghan government and Taliban leaders didn't reach to the level of negotiations for peace. Holbrooke said in an interview on CNN that staging any kind of formal negotiations would be particularly difficult because of the variety of militant groups targeting the US and its allies in Afghanistan. He cited at least five groups, including Haqqani network and the leadership of the AfghanTaliban, both of which are based in neighboring Pakistan. "There is no clear single address that you go to" that represents all the forces fighting the US-backed Afghan government, said Holbrooke, who gathered the top leaders in each of three

warring factions in Bosnia to end that 1990s conflict. Negotiations with al Qaeda, the group responsible for the September 11, 2001, terror attacks, are out of the question, Holbrooke said. And the role of Mullah Omar, the Afghan Taliban leader believed to be holed up in the Pakistani city of Quetta, in sheltering Osama bin Laden before the attacks "presents unique difficulties to anyone talking about reconciliation," Holbrooke said. Holbrooke's assessment reflects the view of Army General David Petraeus, the top US and North Atlantic Treaty Organization commander in Afghanistan, and other officials that the Afghan talks are preliminary. Nato-led coalition is trying to See # 3 Page 11

Crucial Cases

Chief Justice constitutes 6 benches ISLAMABAD: Chief Justice of Pakistan Iftikhar Muhammad Chaudhry has constituted six benches at the Principal seat to hear number of important cases in the next week starting from Oct 25 (today). The first bench includes Chief Justice Chaudhry Iftikhar, Justice Ghulam Rabbani and Justice Khalilur Rehman Ramday, the second bench of Justice Javed Iqbal, Justice Muhammad Sair Ali and Justice Anwar Zaheer Jamali, third bench of Justice Tassadduq Hussain Jillani, Justice Khilji Arif Hussain and Justice Asif Saeed Khan Khosa, fourth bench of Justice Nasir ul Mulk and Justice Mahmood Akhtar Shahid Siddiqui, fifth bench of Justice Raja Fayyaz Ahmed and Justice Tariq Parvez while the sixth bench of Justice Jawwad S Khawaja and Justice Mian Saqib Nisar will hear a number of cases. According to cause lists, no application for adjournment through fax will be placed before the Court. If the counsel is unable to appear for any reason the Advocate-onRecord will be required to argue the case. Besides, no adjournment on any ground will be granted. -APP

BEIJING: US Treasury Secretary Timothy Geithner held talks with his Chinese counterpart Sunday on economic ties, likely touching on the thorny issue of China's currency, which Washington believes is undervalued. Geithner met Vice Premier Wang Qishan in the eastern coastal city of Qingdao a day after a Group of 20 finance ministers meeting wrapped up in South Korea, a US official said. "The two sides exchanged views on US-China economic relations and the preparation for the (G-20) leaders' summit in Seoul," a statement released by the US Embassy said following the talks. US President Barack Obama is likely to meet Chinese President Hu Jintao on the sidelines of the summit in Seoul from November 11-12. Obama is scheduled to attend the meeting, but Hu's attendance has not

been officially announced. US officials refused to detail the specifics of the Geithner-Wang talks, but they likely included China's currency, the yuan, which Washington believes is being kept grossly undervalued in order to help Chinese exporters. China counters that irresponsibly loose US monetary policy is driving down the dollar and causing a wave of capital to flood emerging markets in search of higher yields. In a statement released Saturday, the US Treasury chief said the G20 meeting agreed that a "gradual appreciation" in the currencies of major trade-surplus nations was required. "Countries with significantly undervalued exchange rates committed to move towards more marketdetermined exchange-rate systems that reflect economic fundamentals, as China is now doing," Geithner said

Pak internal situation matter of concern: Gen Singh

India sees Pak nukes as secure NEW DELHI: Amid global fears that Pakistan's nuclear arsenal may fall into the hands of terrorists, Indian Army Chief Gen V K Singh says concern remains over this aspect but he feels these weapons are secure. â&#x20AC;&#x153;Probably Pakistan also has such concerns and they are taking extra measures. I don't think, there is any reason to say things are not secure. Things are secure," the Army Chief told PTI in an interview. He, however, added that this will

remain a concern given "the way internal dynamics of Pakistan are". General Singh recently raised hackles in Pakistan which had criticised him for his comments that Pakistan and China are "major irritants" and India was ready to fight a conventional warfare in a nuclear scenario. Rejecting Pakistan's contention that his recent comments were "jingoistic", he said such views were not only his but of the entire world. -Online

in a statement. But further efforts to stabilise international economic imbalances were necessary if the recovery from the global financial crisis was going to be successful, he added. "This requires a shift in growth strategies by countries that have traditionally run large trade and current account surpluses, away from export dependence and toward stronger domestic demand-led growth," Geithner said. "This entails a range of policy changes, as you can see in the very broad range of domestic reforms being undertaken by China." Geithner was scheduled to return to the United States Sunday following his talks with Wang, US officials said. Last week, China announced that Hu would visit the United States in See # 1 Page 11

20 MPs front EC today ISLAMABAD: Twenty Parliamentarians holding fake degrees are to appear before the Election commission of Pakistan (ECP), today (Monday). These 20 parliamentarians include seven MNAs, eleven Punjab Assembly MPAs, and one each from provincial assemblies of Sindh and Balochistan. MNAs include Salman Mohsin, Dewan Aashiq, Ghulam Dastagir Rajar, Mir Hamdam Bugti, Mazhar Hayat, and Hayatullah Tareen. Punjab assembly MPAs includes, Shabeena Riaz, Iqbal Langrial, See # 2 Page 11

Politics is more than power: Rashid ISLAMABAD: Head of Awami Muslim League (AML) Sheikh Rashid Ahmad has said that politics had more to do with brains than with money and power, adding that nothing is ever blocked in politics. Talking to a private TV channel, he said that any unity of PML factions would benefit Mian Nawaz Sharif, while any damage occurring would also affect him (Nawaz), only. He said that if Mian Nawaz Sharif was willing to survive in a subordinate position to President Asif Ali Zardari, than it was his sweet will. He expressed his regrets that Mian Brothers had failed to devise any credible strategy for Punjab during their tenure, and said that it was too unfortunate of a politician, who lacked vision and yet managed the top party slot of leadership. -Online

Politicians fail to agree on govt formation

Iraq court steps in to mediate BAGHDAD: Iraq's highest court Sunday ordered parliament to resume its sessions despite a deadlock among politicians who have failed to agree on the formation of a government seven months after an inconclusive election. The ruling may pressure Shi'ite, Sunni and Kurdish factions to speed up efforts to reach a deal, but it does not mean an immediate end when parliament reconvenes to an impasse that has stoked tensions just as Iraq emerges from the worst of the war. Parliament's temporary speaker, Fouad Masoum, said he expected to set a date for the session within days.

"I think that this decision will accelerate the government formation," he told Reuters. "When I receive the court's ruling, I will call on all parliamentary blocs to sit down and discuss a date for the session. At the session there should be a consensus among them." The deadlock has mainly pitted incumbent Shi'ite Prime Minister Nuri al-Maliki against a bloc heavily backed by Iraq's once dominant minority Sunnis. Under Iraq's constitution drawn up in the chaotic wake of the 2003 USled invasion, the new 325-seat parliament should pick a speaker in its first session and a new president within 30 days.

The president would in turn select a prime minister from the biggest bloc and ask the nominee to form a government. Iraqiya, led by former prime minister Iyad Allawi, is vying to form its own governing coalition in talks with the Supreme Islamic Iraqi Council (ISCI), a main faction in the INA, which opposed backing Maliki for a second term. Both Maliki's and Allawi's groups are trying to woo the Kurds, whose 57 or so seats would give either the muscle needed to form Iraq's next government. Politicians welcomed the court's ruling as a step towards ending the deadlock. -Reuters

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