The Financial Daily-Epaper-27-12-2010 by The Financial Daily

International Karachi, Monday, December 27, 2010, Muharram-ul-Haram 20, Price Rs12 Pages 12

Altaf lashes out at PML-N chief

PML-N is not pro-govt: ‘N’ Leader

See on Page 12

Awan terms 2011 as year of legislation

See on Page 12

Kaira says no retreat on RGST

See on Page 12

Economic Indicators

President, PM, PPP ministers reach Naudero, offer Fatiha

$16.39bn 14.44% $8.88bn $15.37bn $(6.49)bn $(504)mn $4.43bn $746mn Rs 495bn $58.41bn Rs 5234.9bn $287.9mn -2.58% 4.10% $1,051 171.40mn

Forex Reserves (18-Dec-10) Inflation CPI% (Jul 10-Nov 10) Exports (Jul 10-Nov 10) Imports (Jul 10-Nov 10) Trade Balance (Jul 10-Nov 10) Current A/C (Jul 10- Nov 10) Remittances (Jul 10 - Nov 10) Foreign Invest (Jul 10-Nov 10) Revenue (Jul 10-Nov 10) Foreign Debt (Sep 10) Domestic Debt (Oct 10) Repatriated Profit (Jul- Nov 10) LSM Growth (Sep 10)

GDP Growth FY10E Per Capita Income FY10 Population

PM says RGST indispensable Says if PPP govt fails to do so, successors will have to do it BB murder probe report deferred due to Bilawal’s absence Awan says PPP's CEC special meeting to be called again

Portfolio Investment

Special Correspondents/ Agencies

SCRA(U.S $ in million)

Yearly(Jul, 2010 up to 23-Dec-2010) Monthly(Nov, 2010 up to-23-Dec-2010) Daily (23-Dec-2010) Total Portfolio Invest (17 Dec-2010)

196.25 33.52 1.51 2783

NCCPL NAUDERO: President Asif Ali Zardari presiding over CEC meeting.-APP

(U.S $ in million)

FIPI (24-Dec-2010) Local Companies (24-Dec-2010) Banks / DFI (24-Dec-2010) Mutual Funds (24-Dec-2010) NBFC (24-Dec-2010) Local Investors (24-Dec-2010) Other Organization (24-Dec-2010)

-0.08 7.72 -8.66 0.62 0.55 -0.42 0.27

Global Indices Index

Change

KSE 100

11,858.17

65.34

Nikkei 225

10,279.19

67.29

Hang Seng

22,833.80

69.17

Sensex 30

20,073.66

90.78

SSE COMP.

2,835.16

20.06

FTSE 100

6,008.92

12.85

Dow Jones

11,573.49

14.00

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 2.60 111.37 23.01 197.13 2.00 42.84 1.70 36.41 10.71 36.70

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)

15-Dec-2010 15-Dec-2010 15-Dec-2010 29-Nov-2010 24-Dec-2010 24-Dec-2010 24-Dec-2010 24-Dec-2010 24-Dec-2010 24-Dec-2010 24-Dec-2010 24-Dec-2010 24-Dec-2010 24-Dec-2010 24-Dec-2010

13.17% 13.39% 13.69% 14.00% 13.30% 13.42% 13.61% 13.95% 14.11% 14.15% 14.20% 14.23% 14.53% 14.72% 14.90%

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

93.77 91.51 148.12 1,380.50 29.33 1,170 38,097 9,645

Open Mkt Currency Rates Symbols

Buy (Rs) Sell (Rs)

Australian $ 85.20 86.20 Canadian $ 83.90 84.90 Danish Krone 15.10 15.20 Euro 112.00 114.00 Hong Kong $ 10.90 11.00 Japanese Yen 1.011 1.037 Saudi Riyal 22.63 22.83 Singapore $ 65.00 66.00 Swedish Korona 12.50 12.70 Swiss Franc 86.90 87.10 U.A.E Dirham 23.13 23.37 UK Pound 131.70 133.20 US $ 85.65 85.95 Inter-Bank Currency Rates Symbols

Buying TT Clean

Australian $ 86.02 Canadian $ 85.04 Danish Krone 15.10 Euro 112.13 Hong Kong $ 11.02 Japanese Yen 1.033 Saudi Riyal 22.87 Singapore $ 65.82 Swedish Korona 12.53 Swiss Franc 89.68 U.A.E Dirham 23.35 UK Pound 131.88 US $ 85.67

Selling TT & OD

86.23 85.23 15.14 112.39 11.05 1.035 22.92 65.98 12.56 89.89 23.40 132.19 85.85

Weather Forecast CITIES

ISLAMABAD KARACHI LAHORE FAISALABAD QUETTA RAWALPINDI

MAX-TEMP

22°C 27°C 20°C 21°C 13°C 21°C

MIN

1°C 13°C 2°C 6°C -8°C 3°C

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Budget deficit worries govt ISLAMABAD: Budget deficit has become out of government control due to inviolability of aid announced by Friends of Pakistan and Kerry-Lugar Bill. According to Finance Ministry sources, the government had allocated thirty billion rupees for the power subsidy in 2010-11 budget, but the government has to pay two hundred billion rupees. Similarly, the circular debit in power sector has become worst which will be exceeding from three hundred billions to six hundred billion rupees.

On the occasion of budget, FBR had assured about recovery of Rs1655bn, but the economic team had informed the Prime Minister about Rs100bn decline in the recovery. They had expected Rs72bn extra recovery from the implementation of the RGST but it could not has yet implemented. On the other hand, the government had borrowed four hundred billion rupees loan from the State Bank during the first six month of the current year which has doubled the inflation as the See # 10 Page 11

Spreads up 21bps YoY in November Ahmed Siddique KARACHI: State Bank of Pakistan (SBP) released lending and deposit rates of the banking system for the month of November 2010. Banking spreads rose 21bps to 7.54 per cent compared with 7.33 per cent in November 2009. The main reason of increase in

spreads was higher liquidity in market which resulted into lower cost of deposit, as it decreased by 37bps YoY to 5.88 per cent while they were 6.25 per cent in November 2009. Similarly, lending cost dipped 16bps on yearly basis to 13.42 per cent from 13.58 per cent in same period last year. On the other hand, spread on See # 11 Page 11

Fazl hints at return to coalition PESHAWAR: The JUI-F head Maulana Fazlur-Rehman has said that if incumbents accept the recommendations and suggestions of JUI, the party could recourse to joining the coalition folds. Addressing a public gathering in Peshawar, he stressed on incumbents to eschew the policies of former President Musharraf. He said that since JUI had taken oath to serve the nation in accordance with constitution, the party strongly believed in legislating in according with Shariah, and while strongly rejecting the notion of practicing politics of dissent, said that See # 8 Page 11

All set to mark death anniversary of BB today RAWALPINDI: All arrangements have been completed to observe third death anniversary of former prime minister Shaheed Benazir Bhutto here at Liaquat Bagh. According to media reports, workers and leaders of Pakistan Peoples Party (PPP) belonging to the districts of Rawalpindi, Jhelum, Attock and Chakwal will participate with zeal and zest in the function to be held here at Liaquat Bagh. See # 9 Page 11

GARHI KHUDA BUX/ MULTAN: Prime Minister Syed Yousuf Raza Gilani Sunday said that all parties have their own manifestos, but we are united on national interests despite having individual interests, and vowed to take all political partners on board on all the issues. He was sharing his views with media after paying tributes to Benazir Bhutto's mausoleum here in Garhi Khuda Bux. He said government is firmly focusing over the war against terror because we realise as to investment is reciprocated with peace. He was of the view economy is under stress because of bad security circumstances. He further added that implementation of RGST is unavoidable and if we could not imple-

ment it, our successors will have to do it. He was of the view all the parties have their own individual interests and having different viewpoints is the beauty of democracy. He further said we all are integrated on national interests whether it is Maulana Fazlur Rehman or Altaf Hussain. "Maulana has backed us on all national issues, I won't comment against him to wipe out our relationship", PM said while replying to a question. He said PPP is holding the manifesto given by Mohtarma Benazir Bhutto and we have implemented 80 per cent of her vision whereas we aim to implement the remaining during rest of our tenure. He reiterated we will expose the assassins of BB and inquiry pertaining to this is currently underway. Earlier while talking to

PM meets President NAUDERO: Prior to the meeting of Pakistan Peoples Party (PPP) Central Executive Committee (CEC), Prime Minister Syed Yousuf Raza Gilani met President Asif Ali Zardari here on Sunday. During the meeting overall political situation of the country and matters of national importance were discussed. Foreign Minister Makhdoom Shah Mehmood Qureshi was also present during the meeting. -NNI the media at Multan Airport, Prime Minister Gilani assured that a great number of terrorists' strongholds have been eliminated. PM called upon the people to intimate the police or law enforcement agencies if they See # 5 Page 11

Foreigners invested $5.54mn Zardari $16.4mn exits KSE inaugurates during last week Sindh Bank and maintain lower Ghulam Raza Rajani KARACHI: Banks and DFIs offloaded their holdings at the Karachi stock market in last week as they sold $55.28 million in local bourses while they invested $38.89 million worth of shares resulting in netoffloading of $16.39 million as per National Clearing Company of Pakistan Limited (NCCPL) data. As per sources, few banks are selling to show realised profit

exposure in equity market at year end. However, foreigners continued their buying but their participation were on lower side due to Christmas holidays and year-end. During the week, offshore investors opted for buying fresh position as foreigners bought shares worth $16.33 million and sold $10.79 million, resulting in net buying of $5.54 million during the week. See # 7 Page 11

NAUDERO: President Asif Ali Zardari here on Sunday inaugurated the Sindh Bank's branch. This is the first bank set up in the province by the Government of Sindh. The initial investment in the Sindh Bank by the provincial government is Rs10 billion. The Sindh Bank has been established in a shorter span of one and a half months. It will generate job opportunities for 1,000 people including the women. The Sindh Bank will provide services including the agricultural and consumer loans, microfinance and seasonal advance for the crops. See # 6 Page 11

Monday, December 27, 2010

Benazir Bhutto's 3rd death anniversary

BB, beacon of hope for people: Fehmida

KARACHI: Women showering flowers at the memorial of the former Premier Shaheed Benazir Bhutto on the eve of her death anniversiry at Peopleâ&#x20AC;&#x2122;s Secretariat.-Online

ISLAMABAD: Dr Fehmida Mirza Speaker National Assembly has said that Mohtarma Benazir Bhutto was a visionary and a stateswoman and always aspired for a world, free from exploitation and discrimination between

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

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

privileged and unprivileged men and women. BB fought for the downtrodden and oppressed and longed for a forward looking Pakistan, where women were not subjected to humiliation, torture and treated with respect as

equal partner to progress and prosperity, Dr Fehmida Mirza said this in her message on 3rd death Anniversary being observed on Monday (today). Dr Fehmida Mirza said that Shaheed Mohtarma had a towering and multi-

dimensional personality and was bacon of light for the downtrodden, oppressed and marginalized segments of the society. She said that Mohtarma had the courage to challenge the worst dictatorship of the time, when

compared with other contemporary politicians. She had to pass through the whirlpool of vendetta by a repressive regime in shape of brutal assassination of her father Quaide- Awan Zulfiqar Ali Bhutto, the murder of her two brothers, the hardship of her father and her husband imprisonments, physical and mental torture nevertheless, she bravely faced whatever came in her way, continued to challenge the dictatorship and remained steadfast in her commitment to the people and democracy. Speaker said that today as the nation finds itself encircle by challenges, threats and pressures never witnessed ever before and while we all put in our respective efforts to steer the country out of present quagmire, we need Mohtarma now more than over before. She said that Mohtarma strongly believed in solidarity of federation and provincial autonomy. She said that the people of four provinces had their confidence in her and whenever the nation was given a relatively

free chance to choose her political party returned successful from all four federation units. She said that Pakistan witnessed a phenomenal development in all sectors of economy and made the country impregnable during her both tenures as Prime Minister. Dr Fehmida Mirza said that Mohtarma worked diligently as twice-elected Prime Minister toward the well defined goals of women empowerment. Shaheed Mohtarma brought women to the main stream by appointing them as judges of the superior courts opened first women bank ensured state protection for women by coming up to with the idea of separate women police stations dedicated funds and schemes in shape of women health workers to bring sea-change in the plight of misery and disease stricken women and women and last but surely least encourage women at every tier of political hierarchy. Fehmida said that Mohtarma strongly believed in reconciliation and forbearance ,she was

Democracy returned in Pak due to BB: Naek SUKKUR: The Chairman Senate, Farooq H Naik has said that democracy was flourishing in the country due to sacrifices laid by late Benazir Bhutto, adding that her presence would be greatly missed by all. Talking to media at the Sukkur airport before departing for Garhi Khuda Bakhsh to attend the death anniversary of late chairperson of PPPP, the Chairman Senate said that late Benazir Bhutto was also a great religious leader, as during her exile, weekly Milad (religious gatherings) were held at her residence. He said that despite realising the dangers to her life, she still preferred to return back to her country, just to render her services to her Homeland, and had become a legend due to her sacrifice she laid. He said that her vision and philosophy was intended for as a roadmap for progress and development in Pakistan. always forgiving and tried to look for similarities rather than to seek difference and believed in building bridges and not living in isolation ,both on the international level as well as national front. Speaker NA called upon all the political forces to rise above party lines to work for the democracy ,say no to

extremism militancy and violence and rebuild Pakistan as Mohtarma dreamed aspired and worked for. She termed it the befitting way of paying homage and remembrance Benazir Bhutto deserves as a cherished off spring of the Indus, a gift soul of Pakistan, the befitting daughter of the East and visionary of our times. -Online

Parveen PNAC working to Shakir's 16th check export quality anniversary

ISLAMABAD: Pakistan National Accreditation Council (PNAC) is working on a project to ensure quality of exportable products and increase confidence of exporters. The project called Industrial Linkages Programme on Accreditation (ILPA) would provide quality conscious human resource and help promote Pakistani industry in international market. The two years project will fill the gap and create quality environment in the industrial sector, PNAC sources said here on Sunday. The sources said the project is directly related to National Quality Policy & Plan and will contribute in the development of Quality and Science & Technology segment in industrial sector. The sources said PNAC has already been awarded

Pak-Turkey relations going well: Mukthar ISLAMABAD: Defence Minister Chaudhry Ahmad Mukhtar has said that the governments and armed forces of Pakistan and Turkey have good cooperation and understanding in all fields. According to Radio Pakistan, he said Turkey was a trustworthy friend of Pakistan, which wanted a decisive war against terrorism to secure future generations and bring peace in the world. He said Afghanistan and Central Asian states also wanted to link with train service of Pakistan, Iran and Turkey to reach out Europe. He said Turkish forces always supported the Pakistan Army. While giving precedent of mutual cooperation between the two countries in recent months, Ahmad Mukhtar said that Turkey provided free of cost guided missiles to Pakistan to fight against terrorists in Swat. Replying to a question, he said, "Turkish people love Pakistanis and they want to see Pakistan a developed and major economic power". -Agencies

Mutual Recognition Arrangement (MRA) status by Asia Pacific Laboratory Accreditation Cooperation (APLAC). As a result of MRA all laboratories accredited by PNAC are recognized at international level for their test and calibration results and will greatly facilitate Pakistani exporters in getting their product tested from these labs, thus reducing testing cost and time. A Help Desk under Industrial Linkages Programme on Accreditation (ILPA) in industrial areas of Pakistan is also being established to guide and train industries in utilizing subject facilities within Pakistan. The project envisages programmes, studies, training and other activities in accreditation area with the objectives including training and awareness

raising on accreditation for Industrial sector all over the country. Physical survey of the industrial sectors in collaboration with associations for training needs on quality and accreditation through the liaison desk of ILPA and improve knowledge of local industry/private sector towards quality issues related to accreditation. The other objectives are arrangement of meetings, seminars and training courses for local industries in collaboration with chambers of commerce and industries, associations and industrial clusters, provide guiding material through website, as well as brochures and handouts to the local industry and feed back to PNAC on actual problems faced by exporters and dissemination of possible solution to the industry, the sources added. -APP

Polio drive to cover over 6.5mn infants KARACHI: Over 6.53 million children will be administered polio drops across Sindh from Dec 2830 under Micro-Plan 2010, said Sindh Minister for Human Rights, Nadia Gabol. Talking to APP here on Sunday, she said that her department would keep a close liaison with the provincial Health Department during the three-day campaign. Gabol said that all the less-income areas would be covered with due coordination of the officials of the Health Department, the Human Rights Department

and sought full cooperation of all the town health officers and their field officials and volunteers in this regard. Referring to the detailed plans of polio campaign, she said there was a plan to cover over 2.2 million under 5-year age children in Karachi alone. Under the Micro-Plan, she said that at least 6,448 teams of field officials and volunteers of Health Department will be provided 282 vehicles, 1,283 motorcycles to go door to door in 18 towns of Karachi during the campaign.-Agencies

KARACHI: Federal Minister for Information and Boardcastinf Qamar Zaman Kaira in a group photograph with newly elected office bearers of Karachi Press Club during his visiting to KPC.-APP

observed KARACHI: Parveen Shakir's 16th death anniversary was observed on Sunday. Prominent literary figures laid floral wreaths on the grave of late poetess. It may be recalled that Parveen Shakir, 42, was died in a road accident on December 26, in 1994. Parveen Shakir born on November 24, 1952 in Karachi. She was a noted Urdu poetess, teacher and a civil servant. She did her master in English Literature and Linguistics from Karachi University. She was a professor at Karachi University and Trinity College, Connecticut, USA, for 9 years before joining the Civil Service, where she served in the Customs department. In 1986, she was appointed second secretary, CBR in Islamabad.-Agencies

4Tahir, Moosa KPC new president, Secy KARACHI: The Democrats panel made a clean sweep in the annual election of Karachi Press Club for the year 2011 held on Saturday. Tahir Hassan Khan and Moosa Kaleem were elected as President and Secretary respectively of the KPC. Tahir Hassan Khan bagged 493 votes while Moosa Kalim got 521 votes. Fazil Jamili was elected as Vice-president, M Anwar Khan as treasure and M Arif Khan as joint secretary. Those elected as members of the Governing body were: Shams Kerio, Asif Jiaja, Shakeel Silawat, Noman Rafiq Khan, Ghazala Fasih, Syed Shahzad Ali Shah Jilani and Hamid Nazir. Of the total eligible votes of 1175, as many as 1020 cast their votes while about 70 votes were rejected mostly for the Governing Body. -Agencies

LARKANA: Bakhtawar Bhutto Zardari and Asifa Bhutto Zardari laying floral wreath on the grave of thier mother Shaheed Mohtarma Benazir Bhutto on the ocasion of 3rd death anniversary at Garhi Khuda Bakhsh Bhutto.-APP

Pakistan eyes trade with Oman MUSCAT: Pakistan is looking forward to start passenger and maritime trade service between Gwadar and Muscat to enhance economic and trade ties, as leaders of two countries meet here on Monday to discuss whole range of issues. Prime Minister Gilani, who has expressed keen desire to initiate maritime trade with Oman and make Gwadar Port fully operational, would also discuss ways to boost bilateral economic ties and explore new avenues of bilateral cooperation between the private sectors. The joint working groups of the two countries would further study the prospects of maritime trade and passenger travel through the Gulf of Oman. Apart from Foreign Minister Shah Mehmood Qureshi, Minister for Ports and Shipping Babar Khan Ghauri, Minister of State for Ports and Shipping Nabeel Ahmad Gabol, Balochistan Chief Minister Nawab Muhammad Aslam Khan Raisani, will accompany the Prime Minister and assist him in his talks. According to maritime experts, the trade from

Gwadar can benefit the two countries greatly as a medium ship to Muscat takes only hours to ply as compared to the distance between Karachi and Muscat, which is generally covered in around three days. Pakistan's ambassador to Oman Sohail Amin told APP that Prime Minister Gilani's visit to Pakistan's closest Arab neighbour on Dec 27, was aimed at intensifying bilateral ties in trade, defence, banking, infrastructure development, energy besides seeking greater investment. The ambassador said that Pakistan could utilize its manpower and expertise in energy, infrastructure and oil exploration in Oman. He termed the labour and manpower sectors as an attractive area of cooperation between the two countries. He said that the Prime Minister's two-day visit was the result of painstaking hard work with a series of ministerial level meetings between the two countries throughout the year to explore more avenues of cooperation. He said that work on inking an agreement between the Chambers of Commerce and

Industries of the two countries was also in its final stages. He said bilateral trade between the two countries had more than doubled in the last three years to around $250 million dollars. Pakistan has been exporting its traditional items, including garments, textiles, footwear, fruits, surgical and sports goods to Oman, he added. Ambassador Amin said Omani investors were keen to expand business in Pakistan. He said the Oman International Bank and Oman Oil Company were already working in Pakistan, while Omani investors had expressed interest in more sectors. The two countries initiated their diplomatic relations way back in 1972, and have grown from strength to strength. The current visit is aimed at initiating a more robust relationship and will result in deeper commitment between the two sides for the mutual good of their people. The last high-level visit from Pakistan to Oman was by Prime Minister Shaukat Aziz in 2005, while Sultan Qaboos visited Pakistan in 2001. -APP

Analysis & Feature

Monday, December 27, 2010

CHINA RAISES RATES AGAIN, MORE TO COME C

hina's central bank raised interest rates on Saturday for the second time in just over two months, underscoring concerns that inflation may be entrenched and swift action is needed to get price pressures under control. The intensification of policy tightening also reflects the government's belief that the economy is fundamentally in a good shape. Below are some implications what the latest move means for monetary policy outlook and financial mar-

But investors were not sure if the People's Bank of China (PBOC) would move this year given it only just raised banks' reserve requirements on Nov 19, ahead of data which showed inflation at a 28-month high of 5.1 percent. The PBOC's Christmas Day rate rise is characteristic of its tendency to surprise investors with policy changes when they least expect it. The move came amid tentative signs that price pressures were spreading

Interest rates are just one item in China's toolkit for mopping up the liquidity that is at the root of the country's inflation problem. Banks' reserve requirements and lending quotas are crude but effective shovels for removing cash from the economy as well.

kets. CHRISTMAS SURPRISE The rate rise shows China's top leaders have the task of taming inflation at the top of their agenda, as they had signalled in November, when they said they would intervene to control prices if needed. Such language, alongside Beijing's official switch of its monetary policy to "prudent" from the previous "moderately loose" in early December, had laid market expectations for tighter policy.

beyond food and inflation and could be more stubborn than authorities had expected. China's real interest rates are deep in negative territory. The one-year benchmark deposit rate is only 2.75 percent after the latest climb, well below November's inflation of 5.1 percent, highlighting the risk that price expectations may spin out of control. All said, there have also been dovish signals from the government in recent days. Notably, it has raised its 2011 inflation target to 4

percent from this year's 3 percent. RATE RISE CYCLE Though announced by the central bank, the decision will have received approval from the highest echelons of power. Once a consensus has been forged in Beijing to raise or cut rates, past experience shows that moves often come in bunches. This is the second rate rise in the current tightening cycle (the first was announced on Oct. 19) and analysts think that another 50 bps of increases are on the way over the next year. The PBOC made clear on Friday that it will deploy a range of policy tools to head

off inflationary pressures and asset bubbles. Interest rates are just one item in China's toolkit for mopping up the liquidity that is at the root of the country's inflation problem. Banks' reserve requirements and lending quotas are crude but effective shovels for removing cash from the economy as well. So far, the PBOC has dragged its feet on jacking up rates, relying mainly on quantitative tightening measures, notably banks' reserve requirement ratio (RRR) and lending restrictions, which are less likely to dampen growth in the economy.

The PBOC has increased RRR six times this year but only lifted interest rates twice. Some analysts thought China should have raised rates earlier in the year when the country was growing at a double-digit annual pace. But officials were worried at the time about sluggish external demand and uncertain about how the domestic economy would cope when government stimulus was withdrawn. The view from Beijing now is that the economy has built up a momentum solid enough of its own and tightening is needed to keep it on a sustainable path of growth.

LIMITED MARKET IMPACT Since the move was relatively mild, there could be a relief rally when the Chinese stock market opens on Monday. After all, the market had already priced in more rate rises, with the main index in Shanghai down nearly 10 percent since midNovember. Still, the spectre of more tightening will hang over the market, limiting any gains. The government is determined to keep inflation under control, indicating there will be more tightening in the coming year. The rate rise may suggest

that the central bank is less concerned about hot money inflows, and is more willing to let the yuan appreciate at a faster pace and use the currency as another lever to rein in inflation. In global markets, tighter Chinese policy could fuel investor concerns that growth in the world's second-biggest economy may falter, undermining stocks, commodities and highyielding currencies. But many analysts say China's resilient economy can withstand higher rates and they are a good thing for the country in the long run as they prevent the economy from overheating. -Reuters

Economy, not politics, is worry for Iranians W

ith Iranians f e e l i n g choked by foreign sanctions, broken promises and money worries, President Mahmoud Ahmadinejad faces as much pressure on the economic front as from politics. Ahmadinejad has cut fuel and food subsidies to save $100 billion on the state budget and to make Iran less vulnerable to any sanctions on fuel imports. Critics say he risks stoking inflation and consumer unrest. For many ordinary Iranians, the economy is their main headache. They are not concerned whether the Islamic Republic is covertly building nuclear bombs, as the United States and its allies fear. International sanctions and the government's elimination of subsidies have led to a general fear that life will get worse. The United States imposed new sanctions on Iran on Tuesday to increase pressure on Tehran over its nuclear programme, which the Islamic state says is only for peaceful purposes. "People are worried about the economic sit-

uation. You can not care about politics when you are worried about not being able to pay your rent," said Farokh Amiri, a political science teacher. Analysts say that despite public disgust with the economy, the revival of anti-government unrest was unlike-

"In the absence of coherent opposition leadership, mobilising unrest is almost impossible," political science teacher Samad Hojjati said. Students, merchants and clerics, who played a major role in mobilising unrest to topple the U.S.-backed shah in

made any opposition very costly," he said. Thousands of people protesting against the conduct of the election were arrested after the vote. Most have since been released, though more than 80 people have received jail sentences of up to 16 years. Two people who were

l Analysts say subsidies unlikely to cause unrest

l Say opposition lacks coherent leadership l Firing foreign minister sign of intolerance

ly as the opposition leaders no longer had the power to inspire people. The 2009 disputed reelection of Ahmadinejad plunged the world's fifth biggest oil exporter into its biggest internal crisis since the 1979 Islamic revolution and exposed a deepening rift among the ruling elite.

1979, have been either paralysed or sidelined since the vote, which the opposition says was rigged. The establishment has neutralised its opponents and stamped out any expression of dissent, a senior western diplomat in Tehran said. "Those who took into streets will think twice. The government has

put on trial after the election have been executed. PLAYING ROBIN HOOD "He played a very dangerous gamble to regain his legitimacy and popularity among Iranian grassroots...that is why he acts like a Robin Hood" said analyst Hojjati, referring to the monthly cash com-

pensation of $40 per person which the government pays to the needy. "Ahmadinejad needs lower-income Iranians' vote to secure a 2012 parliamentary election victory." But frustration is simmering in the nation. Prices of most consumer goods have risen and many middle and lower-class Iranians already struggle to make ends meet. "The monthly amount of $40 does not even

take care of the electricity bill after the subsidy cut. How can I manage with a meagre salary of $500, when prices are rising," said school teacher Hamid Maleki, 46, a father of three. Thousands of Iranian truck drivers began strikes after an increase in the price of diesel fuel, opposition websites reported. Courting confrontation both at home and abroad, Ahmadinejad also played a risky game by sacking his

foreign minister Manouchehr Mottaki. He was a close ally of parliament speaker Ali Larijani, a critic of Ahmadinejad's policies. Appointing Ali Akbar Salehi, an aide who heads the Iranian Atomic Energy Organisation, as acting Foreign Minister despite his lack of diplomatic expertise had a clear but indirect message, a former official said. "Ahmadinejad dislikes criticism. Only

like-minded people can have positions at his cabinet," he told Reuters on condition of anonymity. Ahmadinejad's close aides have outraged many conservatives, including MPs, because of their "unorthodox" comments. "Many lawmakers respect Salehi, who stands a good chance of overcoming the barrier of parliament's required confidence vote for the post," the former official said. -Reuters

4 Monday, December 27, 2010

US Losing Optimism

The Financial Daily International Vol 4, Issue 136

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

S. Muneer Hussain Rizvi

Asim Abbas Ashary, CPA

Khurram Shehzad, CFA

Akhtar M. Zaidi, FCA

Prof. Zakaria Sajid (KU)

Dr. A. Hadi Shahid, FCA

Zahid Bukhari SVP HBL (retd)

Muhammad Arif

Ismat Sabir Head office

111-C, Jami Commercial Street 11, Phase VII, DHA Karachi Telephone: 92-21-35311893-6 Fax: 92-21-35388428 URL: www.thefinancialdaily.com Email Address: editor@thefinancialdaily.com

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Martyress of Democracy To date the assassination of Mohtarma Benazir Bhutto has remained an unresolved mystery despite government being run for nearly three years by her political party. Various investigations to identify the culprits, including one by the United Nations fizzled out and it is feared that all the future investigations are likely to meet the same fate. There is a growing consensus that like the murders of Liaquat Ali Khan and Zia-ul-Haq, mystery of Benazir's assassination would never be resolved. Various groups have been trying to interpret the scanty details to suit their own objectives with prime focus being on the government of Pervez Musharraf. They even hold him personally responsible for the assassination with the bottom line that she was killed because of some security lapses. Many suspicions arose as some of the evidences were destroyed deliberately to complicate the issue. Some critics keep on trying opening the Pandora's Box by saying that the killing was the outcome of widening breach between Pervez Musharraf and the lady who spent most of her life under some kind of custody and/or self-chosen exile. She wrote the history by becoming prime minister of a Muslim state twice. She remained the biggest critic of dictatorial rule in the country. The establishment and other political parties were afraid of her charisma. Such elements gave an indication of their ability to kill her by exploding a bomb next to the vehicle in the procession taken out in Karachi. In the investigation of any murder case finding two things is very important, motive and the weapon used for the assassination. In this particular case motive for murder was very obvious because her opponents feared that her party could change the political landscape. Therefore, the worst confusion was created about the weapon used through hasty and fast changing statements. While some quarters insist that the cause of her death was a bomb blast, yet others are turning to implicate certain elements. Some of the elements still insist on the similarities between the murder of Mr Aquino of Philippines and Bhutto of Pakistan. They say in both cases the stronger person was eliminated to install a rather weaker partner for the continuity of policies of the outgoing regime. Many of the critics go to the extent of saying that the present regime is still towing the policies of Musharraf. Ironically, those accompanying Shaheed Benazir are not allowed to open their mouths and those having no clue whatsoever keep on complicating the issue. One could not resist from saying that killers of Benazir are still at large and her name is grossly being misused only to achieve the selfish motives. These elements are least bothered about Pakistan and Pakistanis and only wish to maximise their wealth.

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.

Bernd Debusmann

ptimism is so deeply embedded in the American national psyche that it withstood the Great Depression in the 1930s and a string of recessions since then. But in the era some economists call "the new normal" in America, optimism is fading. So say public opinion polls that ask Americans how they see the future, theirs and their country's. One recent survey, by the respected Pew Research Center, found that depression era Americans were more optimistic about economic recovery in the near future than people questioned in a Pew poll this October, when only 35 per cent said they expected better economic conditions in a year's time. In response to a similar question in 1936 and 1937, about half expected general business conditions to improve over the next six months. The phrase "new normal" was coined by PIMCO, one of the world's biggest investment funds, and is shorthand for an American future that includes lowered living standards, slow growth and high unemployment. Joblessness now stands at 9.8 per cent, up from 9.6 per cent in October. Add workers who have given up looking for jobs and people forced to work part time and the rate climbs to 17 per cent, a powerful reason for declining optimism. But it's not the only one. A slew of studies, surveys and reports show that a growing number of Americans - some surveys say more than half - no longer believe that their country is a land of unlimited opportunity, where all it takes to rise to success is hard work and determination. "The end of American optimism," as a headline over an opinion piece in the Wall Street Journal proclaimed this summer, has not quite arrived. But Americans increasingly believe that the rich just get richer and the poor just get poorer. They

have good reason to think so. The richpoor gap in the United States is wider than in any other developed country. That has rarely been a matter of concern for most Americans but the recession that began in December 2007 turned inequality into a topic of public debate, on occasion with peculiar twists. In November, a widely-read New York Times columnist, Nicholas Kristof, compared the United States to Latin American banana republics. To see countries where the richest one per cent take home more than a fifth of the national income, he said, it was no longer necessary to leave the US Two weeks later, he followed up with a column reporting that the comparison had drawn protests from readers who

Unlike in the US, he said, Latin America had become more equal in recent decades. TRICKLE-DOWN THEORY There is no reason to believe that American income inequality will shrink soon - the next Congress will be dominated by Republicans, many of whom firmly believe in "trickle-down economics," the notion that giving tax and other financial breaks to the rich and the superrich will result in increased profits for corporations which reinvest them, and then create new jobs. Money trickling down from the top. In theory. This was the idea behind Republican insistence on an extension of tax cuts, introduced by George W. Bush, that included America's wealthiest. Congress

â&#x20AC;&#x153;

So say public opinion polls that ask Americans how they see the future, theirs and their country's. One recent survey, by the respected Pew Research Center, found that depression era Americans were more optimistic about economic recovery in the near future than people questioned in a Pew poll this October, when only 35 per cent said they expected better economic conditions in a year's time. In response to a similar question in 1936 and 1937, about half expected general business conditions to improve over the next six months

deemed it glib and unfair. Latin Americans thought it hurtful and invidious. After checking into the matter, he came to the conclusion that "I may have wronged the banana republics."

voted in favour of a two-year extension on December 17 after Republican leaders and President Barack Obama agreed on a compromise many in his own Democratic party saw as an abject sur-

render. While considerable attention has been focused on the gap between rich and poor, wider than at any time since just before the Great Depression, there is perhaps an even weightier reason for Americans to lose their optimistic, cando spirit - for many millions, the notion that they can climb up the economic ladder is more myth than reality. Half of those starting at the bottom 20 per cent never leave that level. "Theâ&#x20AC;ŚAmerican economy tends to help those at the top stay there while making it difficult for those at the bottom to move up," according to a study by Ron Haskins and Isabel Sawhill of the Brookings Institution, a Washington think tank. That is true despite the rags-to-riches stories that underpin the American dream and have fired the imagination of countless immigrants. President Obama himself could be a poster child for upward mobility, a black man reaching the pinnacle of power after an unconventional childhood that included a spell of subsisting on his mother's food stamps. Obama's Republican opponents portray him as a latter-day Karl Marx, intent on an economic model that distributes income from each according to his ability, to each according to his needs. That perception gained currency during Obama's election campaign, when he used the phrase "spread the wealth around" in an exchange on his tax ideas with an Ohio voter named Joe Wurzelbacher. Wurzelbacher became an instant hero to the American right as "Joe the Plumber." He need not have worried. Obama never used the term again and wealth distribution looks likely to continue in one direction - upwards. In the "new normal," there is reason for optimism for those at the top, not those in the shrinking middle or the bottom.-Reuters

Beijingâ&#x20AC;&#x2122;s Xmas Gift to Europe George Chen

f the heavy snows engulfing London's Heathrow Airport are the last thing Europe wants to see, then a big cheque from Beijing could be the best Christmas gift the continent - once the centre of the world, but apparently no longer - could receive this year. The Chinese government is ready to buy 4-5 billion euros ($5.3-6.6 billion) of Portuguese sovereign debt to help the country ward off debt market pressure, the Jornal de Negocios business daily reported on Dec. 22. Without citing any sources, the paper said a deal reached between the two governments would lead to China buying debt via auction or in the secondary market during the first quarter of 2011. The news of Beijing seeking to invest in Portuguese bonds soon helped the euro gain ground against the US dollar and bounce up from an all-time low against the Swiss franc on Wednesday. It also boosted US investor confidence in bank

stocks at home. The potential new credit crisis in many European nations such as Greece, Spain, Portugal, Ireland and even Italy has been a growing global concern for capital markets. Beijing's help could certainly ease such worries to a certain extent if the news can be officially confirmed. China's central bank has chosen to remain silent on the report, so far. Premier Wen Jiabao, often dubbed "Grandpa Wen" at home for his easy-going personality with ordinary people, visited a number of European countries including Portugal and Greece earlier this year. At the time, Wen's trip was already considered a new sign of China's growing influence in Europe, with Beijing expected to lend a hand to its national debt problems as nobody would think of turning to the United States any more for such a role in the wake of the financial crisis. Will Portugal be the last European nation to get Beijing's help? Unlikely. Greece is also understood to be

on the waiting list to get Chinese money for its new sovereignty bond issue. However, if such aid continues, Beijing may face twin pressures from the United States and its own people. Beijing has complained about the US government's socalled "carrot and stick diplomacy" since the days of Mao Zedong, the country's first Communist state head, Now it's becoming less arguable whether China will take the same approach with those socalled "friendly countries". The United States may monitor Beijing's financial aid for Europe closely to check for links between the money and human rights issues. Domestically, Beijing is concerned about social stability, in particular after inflation hit repeated highs this year. Some local media reports suggested that university students in some third- and fourth-tier cities had started to protest about increasingly expensive food bills on campus. Does this remind you of anything from

more recent Chinese history? On the other side, the Chinese economy itself is far more open than when "New China" was founded by Chairman Mao in 1949, as the country still relies heavily on external trade. When we look forward to 2011, the global market environment to a very large extent is clearly linked to developments in the European debt issue. Beijing is helping Europe extricate itself from this potential new credit crisis as it also wants to avoid any negative external impact on its own economy next year. Something pretty interesting I found out this week about China, which I also take as a good sign of Beijing's more open-minded attitude towards the world: When China's top banking regulator Liu Mingkang met a group of Hong Kong reporters briefly in Beijing just few days ago, Liu said "Merry Christmas" and asked the Hong Kong media types to pass on his wishes to the people of Hong Kong, the former British colony.

Liu studied in London for some years in the late 1980s, so he must know what Christmas means in the West, even though Chinese Communists should not believe in any religion. Just five or six years ago, Chinese media were still very careful about reports concerning Christmas. Even if they mentioned it in articles, it should not carry any religious overtones. Not so many years ago, a Communist official could even be sacked or demoted for speaking about Christmas or related matters in public if he was not careful enough. Today, Liu wishes you all a merry Christmas and Beijing is actually offering the whole of Europe a Christmas surprise via its commitment to support Portugal's debt issue. Clearly, the world has truly changed within just few decades. So, are the rules of the game now being changed by global politics and markets?-Reuters Writer is a Reuters editor and columnist based in Hong Kong.

The Indian Graft Daniel Magnowski

ndia's federal agents began interrogating a former telecoms minister on Friday in the country's biggest corruption case, a move the government hopes will help ease a crippling political row with the opposition. Here are details on four major scandals that have broken out recently: TELECOMS LICENCE ROW India may have lost up to $39 billion in revenue when the telecoms ministry gave out lucrative licences and radio spectrum in 2007/08 at below-market prices, the state auditor has said. The Comptroller and Auditor General of India's (CAG) report last month also said rules were flouted when the licences were given out which led to many ineligible firms getting licences. While nobody has been charged, investigations have focused on the telecoms ministry, firms and lobbyists. Telecoms minister Andimuthu Raja was sacked after the report was released. Raja has denied any wrongdoing. The top anti-corruption official's credentials have also been questioned by the Supreme Court, as he was the senior bureaucrat in the telecoms ministry before his elevation and has a separate corruption charge against him.

The scam has led to the opposition stalling the last session of parliament which ended this month, demanding a joint parliamentary probe. The government has rejected the demand, saying separate investigations are underway. The Central Bureau of Investigation (CBI) is investigating allegations of corruption in the ministry and the government has said it is willing to have the Supreme Court monitor the probe. The CAG report says units of realtor Unitech were given licences despite not having adequate capital. The units are now part of the India operations of Norway's Telenor . Swan Telecom, which has since been bought into by UAE's Etisalat , was given a licence despite being disqualified as No. 2 telecoms firm Reliance Communications owned more than 10 percent in it, the auditor said. Reliance Communications was also given undue benefits as it sought permission to offer services under the more popular GSM technology, the auditor said. All firms have denied wrongdoing and have said they complied with all rules when licences were given. Authorities have questioned Nira Radia, a top lobbyist who represents companies like Tata and Reliance Industries, as part

of an investigation into whether money laundering and forex laws were broken when the licences were purchased. Prime Minister Manmohan Singh has been criticised for sitting on a request to grant permission to charge Raja with corruption, and been forced to answer questions from the Supreme Court. LOAN BRIBERY SCAM Top officials of Indian banks, lenders and financial firms have been accused of taking bribes to grant corporate loans. While the size of the scandal is not known, local media have reported it could run into millions of dollars. The CBI, India's federal investigative agency, arrested eight people in November, including the chief executive of LIC Housing Finance and senior officials at state-run Central Bank of India , Punjab National Bank and Bank of India . The bribes were allegedly paid by private finance firm Money Matters Financial Services , which acted as a "mediator and facilitator" for the loan beneficiaries, the CBI said. Three Money Matters executives, including the managing director, have been arrested for offering bribes. Several leading Indian firms were named in court documents filed by the CBI, including wind turbine maker Suzlon Energy ,

infrastructure company HCC's Lavasa unit and real estate firm DB Realty . All three have denied any wrongdoing. A CBI source has said the probe will widen to look if other banks were involved. Finance Minister Pranab Mukherjee has asked investors not to panic over the case, following up on comments by other officials that this is a case of individual wrongdoing and not a widespread scam and that the banking sector will not be affected by it. COMMONWEALTH GAMES The sporting extravaganza in October, which cost up to $6 billion, was dogged by several cases of alleged corruption, including the purchase of equipment and issuing contracts. The anti-corruption watchdog has identified more than 16 projects with possible irregularities. The ruling Congress party sacked Suresh Kalmadi, chairman of the organising committee, as secretary of the party's parliamentary wing. Three of his close aides have been arrested and local media has said Kalmadi too could be arrested. His homes and offices were raided by the CBI on Dec. 24. The allegations include manipulations of tenders in the building of stadia and other games infrastructure, and inflating bills for equipment such as treadmills and toilet paper rolls.

Several bodies, including the anti-corruption watchdog, the state auditor, the CBI and a special committee set up by Prime Minister Singh, are probing the allegations. The CBI has also raided the homes and offices of the Games organisers, part of a probe into $21.7 million of misplaced funds. HOUSING SCAM Congress party politicians, bureaucrats and military officials have been accused of taking over land meant to build apartments for war widows. After the story broke in local media the government sacked the powerful chief minister of western Maharashtra state, who is a member of the Congress party. The Arabian Sea-facing block with 103 apartments in an upscale Mumbai district, that is among the world's most expensive pieces of real estate, is also being investigated for several violation of norms, including environmental and land-use rules. Apartments were sold for as little as $130,000 each, while local media estimated their value at $1.8 million each. Since the scandal broke, the government has effectively taken back permits allowing owners to occupy the apartments, leading to the disconnection of water and power supply. The CBI has begun investigating the case.-Reuters

Monday, December 27, 2010

Dubai bourse to allow greater stock fluctuation

World stocks go high on solid Christmas kick

Weekly Review

During Last Week

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

Caution, profit keep KSE on a tight leash

11,786.09 11,858.17 72.08 0.61 501.05

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

3,637.28 3,671.84 34.56 0.95 22.13

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

2,972.77 2,980.36 7.59 0.26 0.94

Major Gainers

Symbol UPFL COLG RMPL DREL PSEL

Change

1,118.04 944.50 2,189.99 669.00 177.00

68.04 64.50 40.35 29.01 15.00

Nawaz Ali

Major Losers

Symbol

Change

ULEVER 4,362.24 NESTLE 2,450.00 SIEM 1,242.50 IDYM 324.71 PECO 249.75

-92.86 -39.75 -27.54 -24.04 -11.50

Top 5 Volume Leaders

Symbol

Close Vol (mn)

LOTPTA ANL NBP NML BAFL

13.50 10.15 72.05 61.70 10.74

40.19 30.81 26.22 23.81 21.45

Active Issues Plus Minus Unchanged

223 201 13

HONG KONG: A floor broker prepares for the opening at the Stock Exchange of Hong Kong (SEHK).-Reuters

KARACHI: Karachi Stock Exchange (KSE) was mainly under the bullish regime last week ending above 11,800 points level supported by successful visit of Chinese prime minister, however local investors remained cautious on slowdown in foreign activity and resorted to book profits at higher levels. The benchmark KSE 100index ended 72 points up at 11,858 points, KSE 30Index increased by 77 points and KSE All Share Index gained 49 points to close at 11,391 and 8,242 points respectively. Rabia Tariq, analyst at JS Global Capital said, "Though there was some political dissent among key coalition partners initially, the market opened on a positive note following Chinese PM's visit. However, later in the week it witnessed profit taking -a typical trend before yearend." The week started with some positive activities on Monday as investors took positions following trade agreements with China and a peaceful Ashura. Therefore index at one moment during intra-day trading touched the highest level of the week at 11,928

points. Rabia said that market sentiments got a boost following the Pak-China Business Co-operation Summit which nailed 17 agreements, four MoUs and one joint venture worth $15 billion between the 2 countries. However, then market witnessed some mixed activities as investors preferred to book profits following continuous up-trend since last few days. Further, the expected slow down in foreigners' activities made investors adopt cautious stance. Therefore due to selling index at a moment fell down to 11,759 points - its lowest level of the week. On the other side, delay in approval of IMF tranche and weakening economic situation damped investor sentiments. It should be noted that government formally asked for a ninemonth extension of its $11 billion IMF bailout package which according to analysts means the possible delay in next IMF tranche. Moreover, in the PIB auction, the SBP accepted bids worth Rs20.5 billion, with 3, 5 & 10-yr yields rising to 14.25 per cent, 14.30 per cent & 14.36 per cent, up 35bps, 30bps & 26bps respectively, from the pre-

vious auction. However, some buying was witnessed in fertiliser and textile stocks over rising cotton prices, increase in urea prices by Rs190/bag, and news of Engro's new fertiliser plant's likely attainment of CoD in the 2nd week of Jan 2011. Also interest was seen in Pakistan State Oil on expected payment of Rs35 billion by the Ministry of Finance as a compensation for circular debt. Though foreigners stayed on the buying side but the quantum slowed towards the end of the week due to Christmas and New Year holidays. According to NCCPL data, offshore investors did a net-buying of $5.5 million last week while on the local side banks did a net-selling of $16.4 million. Investor participation remained dry throughout the week as 501 million shares traded during the week with an average volume of 100.2 million shares which is 48 million shares less as compared to an average turnover of 148.2 million shares during the previous week. Out of total 437 active issues 223 advanced and 201 declined while 13 issues remained unchanged.

Dhiyan

GONNA BE A ZIGZAGER TODAY Tariq Hussain Khan, Head of Portfolio Management United Capital During last week, the market managed to maintain its crucial level of 11,800 points despite low participation by foreign investors. This was because of hopes of better than expected corporate results in weeks to come. This week, we expect the market might face a short-term technical correction due to low volumes coupled with lack of any positive news. However, if market manages to sustain 11,600 points level then we might see some fresh interest in those blue chip scrips the corporate results of which are likely to surprise investors in a good way. Some side-board scrips also provide opportunity for short-term gains. E&Ps, fertilisers, OMCs and textiles are investable for medium to long-term benefits. Banking sector might also give some surprises. Today, the market might zigzag till close.

Muhammad Ahsan Rasheed , Director Research & Marketing AMJ Growth This is the last week of this year in which KSE Board of Directors election will also take place. Market needs some good news to maintain the bull-run as it is in an overbought region therefore we might see some profit taking. However stable political and peaceful law and order situation could make apex index touch a new high of year 2010 above 12,000 points level. Unpredictable moves can be seen in 2nd or 3rd tier stocks, while oil, fertiliser and banking sectors are likely to show good performance this week. Investors are advised to place stop loss at support level of 11,670 points. Today market outlook is mixed.

Monday, December 27, 2010

Market Volume

501,046,513

Value

25,092,809,232

Trades

317,598

Paid up Cap(mn)

Advanced Declined Unchanged Total

223 201 13 437

Current High Low Change

11,858.17 11,928.57 11,759.32 h72.08

Open

High

High Low 1,552.01 1,515.62 Total cos Defaulter cos P/BV (x) ROE (%) 3.63 32.54 Low

Close Chg

Last 60 days High Low

Volume

2010 Div BR (%) (%)

5.68 326.47

330.00 323.50 327.94

374.20

287.99

250

300

20B

6.70 120.00

123.40 119.00 119.56 -0.44

7230345 137.20

78.51

Mari Gas Company

735 16.88 119.93

128.50 119.20 124.58

4.65

795944

128.90

106.00 32.17 100B

National Refinery

800

267.50 258.50 262.67 -0.52

441262

275.40

192.25

125

200

171.40 167.00 169.32

2138634 171.40

142.05

82.5

Oil & Gas Development XD 43009 11.46 167.52

P.S.O

1.80

794639

2009 Div BR (%) (%)

691

3.89 263.19

1.47

Close Change % Change 1,531.25 6.05 0.40 Listed cap Market cap 200-Day High 65,194.15 mn 1,189,993.05 mn Payout (%) Div Yield (%) 200-Day Low 55.94 5.01 -

11950

8.72 218.28

221.75 210.82 214.33 -3.95

10451187 221.75

168.70

130

20B

2365

6.88 293.15

299.00 287.00 291.23 -1.92

9363602 299.00

230.05

180

255

350

- 101.91

113.00 101.00 110.15

8.24

548604

113.00

55.00

1715

4.98 285.97

298.34 287.50 294.04

8.07

11810248 298.34

258.00

Shell Gas LPG

226

Shell Pakistan

685 10.64 204.16

36.16

36.70

35.00

35.57 -0.59

209.00 204.00 207.56

3.40

19044

40.28

29.05

121263

209.00

182.05

330

Performance of SR Chemicals Index Open High Low 1,339.37 1,387.97 1,336.03 Turnover Total cos Defaulter cos 103,130,423 P/E (x) P/BV (x) ROE (%) 8.39 2.94 35.00 Paid up Cap(mn)

Open

High

Low

Agritech Limited 3924 8.78 Bawany Air 68 78.58 BOC (Pak) 250 12.26 Clariant Pak 273 6.54 Dawood Hercules 1203 7.80 Dewan Salman 3663 Dynea Pak 94 Engro Corporation Ltd 3277 10.83 Fatima Fertilizer 22000 Fauji Fertilizer 6785 8.80 Fauji Fert. Bin Qasim 9341 6.88 ICI Pakistan 1388 8.01 Lotte Pakistan 15142 4.82 Mandviwala 74 Nimir Ind Chemical 1106 Shaffi Chemical 120 Sitara Chem Ind 214 10.42 Sitara Peroxide 551 15.27 Wah-Noble 90 7.01

23.92 9.90 84.99 158.02 177.69 3.12 10.60 194.20 9.80 118.09 35.00 138.21 13.17 2.19 2.11 2.70 122.57 13.64 34.76

24.75 10.15 94.20 178.20 191.49 3.48 10.99 200.40 10.02 121.99 36.70 145.00 13.62 2.40 2.28 2.89 128.98 14.54 39.00

22.35 8.64 84.00 157.98 178.50 3.06 10.20 192.00 9.16 116.10 34.80 138.65 13.11 1.57 2.04 2.20 117.90 13.50 35.11

Close Chg 24.24 9.43 89.28 171.08 188.19 3.36 10.94 197.13 9.98 121.39 36.45 142.09 13.50 1.84 2.06 2.45 127.11 14.05 36.43

0.32 -0.47 4.29 13.06 10.50 0.24 0.34 2.93 0.18 3.30 1.45 3.88 0.33 -0.35 -0.05 -0.25 4.54 0.41 1.67

Close 1,378.80 Listed cap 52,251.88 mn Payout (%) 48.81

Last 60 days High Low

Volume 218793 30762 177412 171676 485376 11023004 12230 10147990 13241790 5595182 18515591 3658034 40190983 1066878 3438574 20707 54544 1718050 15446

Change % Change 39.43 2.94 Market cap 200-Day High 302,515.49 mn Div Yield (%) 200-Day Low 5.81 -

24.75 13.99 94.20 178.20 191.49 4.24 13.79 200.40 11.74 121.99 36.92 145.00 13.83 2.75 2.74 3.40 139.40 14.69 46.25

2009 Div BR (%) (%)

2010 Div BR (%) (%)

20.26 7.73 5 72.00 90 15 149.72 125 163.55 40 10B 40 1.28 9.15 15 15 171.54 6010B 40R 40 9.16 104.25 131.5 10B 95 26.59 40 - 17.5 116.00 80 55 8.17 5 0.80 1.30 1.80 101.00 75 25 7.67 32.00 50 50

10R 5B -

FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,180.29 Turnover 544,057 P/E (x) 6.13 Company

High Low 1,227.47 1,156.47 Total cos Defaulter cos P/BV (x) ROE (%) 0.46 7.47

Close 1,217.12 Listed cap 1,186.83 mn Payout (%) 25.28

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

707 50 411

8.61 7.36

16.30 45.78 45.75

16.90 48.80 47.70

15.70 44.67 45.00

16.67 0.37 44.77 -1.01 47.70 1.95

518892 18338 6827

Century Paper Pak Paper Product Security Paper

Company

Change % Change 36.83 3.12 Market cap 200-Day High 3,372.75 mn Div Yield (%) 200-Day Low 4.12 -

Last 60 days High Low 20.69 62.24 47.70

15.28 38.61 38.00

2009 Div BR (%) (%)

2010 Div BR (%) (%)

- 425R 20 50 -

25 33.33B 50 -

Paid up Cap(mn)

Pak Int Cont.Terminal PNSC

1092 1321

Open 986.14 Turnover 2,379,269 P/E (x) 3.27 Company

Paid up Cap(mn)

Crescent Steel Dost Steels Ltd Huffaz Pipe International Ind

High Low 1,059.77 976.21 Total cos Defaulter cos P/BV (x) ROE (%) 1.08 33.10

Open

High

Low

565 4.07 675 555 9.86 1199 11.82

25.32 2.86 14.67 51.26

27.10 3.09 16.00 56.72

25.00 2.74 14.35 51.00

Close Chg 26.06 2.76 15.78 56.72

0.74 -0.10 1.11 5.46

Close 1,045.25 Listed cap 3,596.11 mn Payout (%) 30.91

Last 60 days High Low

Volume

484191 27.10 105144 3.39 360993 16.75 1417623 56.72

2009 Div BR (%) (%)

23.75 1.65 12.25 44.00

30B -

Open

High

Low

Close Chg

Volume

Last 60 days High Low

7.35 36.83

73.50 34.00

74.97 35.42

70.00 32.36

73.50 0.00 33.88 -0.12

451524 15128

77.77 41.00

Open 1,154.33 Turnover 7,850,381 P/E (x) 4.32 Paid up Cap(mn)

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

Company

Paid up Cap(mn)

Al-Abbas Cement Attock Cement Balochistan Glass Ltd Berger Paints Buxly Paints Cherat Cement Dadabhoy Cement Dewan Cement DG Khan Cement Ltd Fauji Cement Fecto Cement Flying Cement Ltd Gharibwal Cement Haydery Const Kohat Cement Lucky Cement Maple Leaf Cement Maple Leaf(Pref) Pioneer Cement Safe Mix Concrete Shabbir Tiles Thatta Cement

High Low 1,053.18 1,005.20 Total cos Defaulter cos P/BV (x) ROE (%) 0.55 7.10

Open

High

Low

1828 866 6.63 858 182 14 956 25.00 982 13.46 3574 3651 124.75 6933 15.55 502 3.65 1760 2319 32 1288 3234 6.81 5261 1.38 541 2.95 2228 200 361 798 450.00

3.54 62.98 2.05 20.45 10.91 11.07 1.91 2.34 31.02 5.14 7.21 2.02 8.25 0.73 7.13 76.39 3.02 4.23 6.94 6.17 8.65 17.79

3.98 63.90 3.49 23.50 15.50 11.15 2.12 2.56 31.53 5.35 7.60 2.13 9.19 0.81 7.25 78.44 3.22 5.22 7.09 6.48 9.25 18.49

3.12 62.51 1.95 20.11 11.91 10.80 1.75 2.21 29.80 5.10 6.95 1.81 7.25 0.64 6.50 75.10 2.87 3.21 6.76 6.00 8.11 17.90

Close 1,013.64 Listed cap 54,792.74 mn Payout (%) 19.04

Close Chg

Volume

Last 60 days High Low

3.22 63.00 3.30 23.01 14.86 11.00 1.75 2.33 29.94 5.13 7.01 1.85 7.87 0.68 6.60 75.80 2.97 4.01 6.78 6.35 8.80 18.00

92021 479486 403413 389836 46516 10232 142331 2864373 15189860 3661789 37005 988485 53163 13057 220253 4734337 480758 35919 1500415 12838 7444 1102212

3.98 67.00 3.49 23.50 15.50 12.75 2.49 3.10 32.10 5.55 8.20 2.25 9.19 1.08 8.70 79.98 3.30 8.89 8.58 7.90 10.98 22.24

-0.32 0.02 1.25 2.56 3.95 -0.07 -0.16 -0.01 -1.08 -0.01 -0.20 -0.17 -0.38 -0.05 -0.53 -0.59 -0.05 -0.22 -0.16 0.18 0.15 0.21

2.80 57.60 1.10 14.01 7.91 9.51 1.31 1.30 23.40 4.52 4.25 1.70 2.70 0.25 5.50 67.70 2.51 3.21 6.56 5.25 6.30 17.71

2009 Div BR (%) (%) 50 40 9.75 -

20B 20R 10B -

2010 Div BR (%) (%) - 100R 50 - 122R - 20R 40 - 50R

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 1,006.24 Turnover 4,910,779 P/E (x) 2.86

High Low 1,068.31 998.65 Total cos Defaulter cos P/BV (x) ROE (%) 1.26 43.91

Close 1,039.76 Listed cap 3,043.31 mn Payout (%) 15.55

Change % Change 33.52 3.33 Market cap 200-Day High 39,002.95 mn Div Yield (%) 200-Day Low 5.43 -

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Last 60 days High Low

Cherat Papersack

115

2.73

78.30

81.49

76.50

76.60 -1.70

378897

83.23

34.00

25B

ECOPACK Ltd

230

2.66

3.30

2.60

2.71 0.05

1462073

3.30

1.70

1067

4.49

49.89

51.00

48.10

48.89 -1.00

54742

61.99

45.30

10B

389

3.29

3.60

3.06

3.47 0.18

48113

4.05

1.60

47 59.00

24.57

24.99

21.50

23.60 -0.97

11975

25.90

13.01

2489350 136.74

98.00

32.5

Company

Ghani Glass MACPAC Films Merit Pack Packages Ltd

844 66.35 117.77

136.74 117.51 129.39 11.62

2009 Div BR (%) (%)

2010 Div BR (%) (%)

INDUSTRIAL ENGINEERING

Company

Paid up Cap(mn)

AL-Noor Sugar Chashma Sugar Crescent Sugar Dewan Sugar Faran Sugar Habib Sugar Habib-ADM Ltd J D WSugar Mehran Sugar Mirza Sugar National Foods Noon Pakistan Noon Sugar Pangrio Sugar Quice Food Sanghar Sugar Shahmurad Sugar UniLever Pakistan

186 287 214 365 217 600 200 490 143 141 414 48 165 109 107 119 211 665

Company Ados Pak AL-Ghazi Tractor

Paid up Cap(mn) 66 215

Dewan Auto Engineering 214 Ghandhara Ind

PE 1.08

Open 16.20

5.58 220.10 -

1.57

213 10.56

11.14

KSB Pumps

132

7.52

66.90

Millat Tractors XB

366

6.47 493.23

High 18.20

High Low 1,564.48 1,522.96 Total cos Defaulter cos P/BV (x) ROE (%) 3.18 38.02 Low 16.70

Close Chg 16.71

0.51

238.99 217.50 232.94 12.84 1.97

1.30

1.54 -0.03

12.15

11.00

11.41

68.00

60.00

62.77 -4.13

502.95 493.50 494.29

0.27

1.06

Close 1,537.58 Listed cap 1,336.62 mn Payout (%) 131.49

Volume

2009 Div BR (%) (%)

20.90

14.12

57357

238.99

200.00

2.40

0.21

266364

16.35

10.55

40 15

Low

Close Chg

Close 1,166.33 Listed cap 6,768.53 mn Payout (%) 20.42

Volume 20770 94963 12623 6695982 92237 542641 269731 91542 25196

Change % Change 12.00 1.04 Market cap 200-Day High 42,862.61 mn Div Yield (%) 200-Day Low 4.73 -

Last 60 days High Low 75.99 179.90 128.90 2.89 5.67 13.40 282.45 77.90 27.00

65.75 131.00 92.50 1.20 4.03 9.65 215.99 66.75 17.92

2009 Div BR (%) (%)

2010 Div BR (%) (%)

40 100 80 100 5 -

90 100 150 10

20B 30B 20B

20B 20B

Open

High

High Low 1,767.20 1,665.50 Total cos Defaulter cos P/BV (x) ROE (%) 11.58 30.30 Low

Close Chg

45.51 47.75 11.32 12.12 5.16 5.16 3.30 3.53 19.00 20.00 32.50 32.92 12.02 12.74 81.50 87.86 56.75 57.96 5.75 5.91 49.50 59.18 22.25 25.89 12.30 12.51 5.38 6.00 2.16 2.16 13.26 14.40 9.93 11.40 4235.00 4362.24

-1.74 -0.20 -1.34 -0.34 0.00 -1.91 0.38 2.99 0.06 -0.18 10.60 2.24 -1.01 -0.19 -0.14 0.55 -0.10 -92.86

Close 1,714.09 Listed cap 11,335.33 mn Payout (%) 30.57

2010 Div BR (%) (%)

400

150

Volume

Last 60 days High Low

15984 53.00 364649 15.47 29056 6.65 337881 5.59 290279 21.50 1390674 36.50 48255 16.50 7875 89.89 13217 68.49 80709 7.18 101692 61.98 12390 27.30 8748 14.84 10224 6.99 23000 3.40 13637 14.40 21942 13.50 6732 4610.00

39.25 8.50 5.00 1.11 18.30 28.50 11.90 64.12 48.50 4.20 39.01 17.51 11.00 4.00 2.02 13.00 9.93 3825.00

2009 Div BR (%) (%)

170135

87.15

60.00

589.50

390.00

450

25B

650

25B

RSI (14-day)

56.29

Total Assets (Rs in mn)

17,566.02

MA (10-day)

3.06

Total Equity (Rs in mn)

11,379.05

MA (100-day)

2.66

Revenue (Rs in mn)

MA (200-day)

3.30

Interest Expense

1st Support

2.90

Loss after Taxation

2nd Support

2.85

EPS 09 (Rs)

(0.57)

1st Resistance

3.00

Book value / share (Rs)

13.22

2nd Resistance

3.05

PE 10 E (x)

Pivot

2.95

PBV (x)

8,408.28 523.03 (490.82)

0.22

WTL closed down -0.23 at 2.96. Volume was 73 per cent below average (consolidating) and Bollinger Bands were 85 per cent wider than normal. The company's loss after taxation stood at Rs744.23 million which translates into a Loss Per Share of Rs0.86 for the nine months of current calendar year (9MCY10). WTL is currently 10.0 per cent below its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into WTL (bullish). Trend forecasting oscillators are currently bullish on WTL.

Dewan Salman Fibre Limited

40 17.5 35 40 40 35 50 10 15 458

25B 30B 25B 10B 10B -

2010 Div BR (%) (%) 25 25B 40 0 12.5R 35 20B 10 12 12 10 178 -

HOUSEHOLD GOODS Open 1,099.05 Turnover 1,619,120 P/E (x) 2.97

High Low 1,117.63 1,088.00 Total cos Defaulter cos P/BV (x) ROE (%) 0.32 10.64

Paid up Cap(mn)

Open

High

Low

Gauhar Engineering Ltd 22 Hussain Industries 106 Pak Elektron 1174 Tariq Glass Ind 231

3.57 2.42

0.65 9.49 13.78 20.28

0.67 9.99 14.45 20.80

0.65 6.82 13.61 19.75

Close Chg 0.67 7.02 14.19 20.25

0.02 -2.47 0.41 -0.03

Close 1,113.91 Listed cap 3,763.71 mn Payout (%) 6.27

Volume

Change % Change 14.87 1.35 Market cap 200-Day High 5,180.52 mn Div Yield (%) 200-Day Low 2.11 -

Last 60 days High Low

7500 0.75 14412 11.49 1463986 15.09 214716 21.40

0.15 6.82 12.90 15.90

2009 Div BR (%) (%) -

10B -

RSI (14-day)

67.83

Total Assets (Rs in mn)

16,668.04

MA (10-day)

3.35

Total Equity (Rs in mn)

(5,909.01)

MA (100-day)

1.82

Revenue (Rs in mn)

MA (200-day)

1.91

Interest Expense

1st Support

3.30

Loss after Taxation

2nd Support

3.21

EPS 09 (Rs)

1st Resistance

3.44

Book value / share (Rs)

2nd Resistance

3.49

PE 10 E (x)

Pivot

3.35

PBV (x)

4,169.62 2,050.22 (6,233.79) (17.017) (16.13) (0.21)

DSFL closed up 0.24 at 3.36. Volume was 49 per cent below average (consolidating) and Bollinger Bands were 275 per cent wider than normal. The company's loss after taxation stood at Rs246.014 million which translates into a Loss Per Share of Rs0.67 for the 1st quarter of current fiscal year (1QFY11). DSFL is currently 76.1 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into DSFL (bullish). Trend forecasting oscillators are currently bullish on DSFL.

Karachi Electric Supply Corp Ltd

2010 Div BR (%) (%) 17.5

Fundamental Highlights As on Jun 30, 2009

Technical Analysis

10B -

PERSONAL GOODS Performance of SR Personal Goods Index Open 998.53 Turnover 75,992,187 P/E (x) 6.78 Paid up Cap(mn)

(Colony) Thal AL-Qadir Textile Amtex Limited Artistic Denim Azam Textile Azgard Nine Babri Cotton Bannu Woolen XD Brothers Textile Chenab Limited Colony Mills Ltd Crescent Fibres Ltd Crescent Jute Crescent Textile D M Textile D S Ind Ltd Dawood Lawrencepur Dewan Farooque Spin. Dewan Mushtaq Textile Din Textile Ellcot Spinning Fazal Cloth Gadoon Textile XD Gul Ahmed Textile Hajra Textile Hira Textile Mills Ltd. Ibrahim Fibres ICC Textile Ideal Spinning Idrees Textile J K Spinning Janana D Mal Khalid Siraj Kohinoor Ind Kohinoor Spinning Kohinoor Textile Mian Textile Mohd Farooq Mubarak Textile Mukhtar Textile Nishat (Chunian) Nishat Mills Pak Synthetic Paramount Spinning Premium Textile Prosperity Ravi Textile Reliance Weaving Saif Textile Sally Textile Samin Textile Sana Ind Sargodha Spinning Saritow Spinning Service Fabrics Service Ind Shahpur Textile Shahtaj Textile Shams Textile Suraj Cotton Tata Textile Thal Limited Treet Corp

56 76 2415 840 133 4493 33 76 98 1150 2442 124 238 492 31 600 514 600 34 204 110 188 234 635 138 716 3105 100 99 180 184 43 107 303 1300 1455 221 189 54 145 1596 3516 560 174 62 185 250 308 264 88 134 55 312 133 158 120 140 97 86 180 173 307 418

Open

1.02 6.10 9.34 4.35 6.60 22.76 0.32 2.07 - 10.15 0.49 9.25 0.45 13.25 0.50 3.17 3.72 2.65 0.57 12.26 0.90 3.85 19.50 2.39 1.90 52.34 44.47 3.39 4.50 0.14 5.11 0.57 25.15 0.62 19.70 1.37 68.50 0.75 55.93 3.89 26.99 0.74 0.75 4.05 3.05 37.55 1.95 0.55 6.05 3.79 3.27 0.95 6.31 0.26 14.00 0.70 1.78 0.37 1.10 3.72 5.49 0.59 1.30 25.00 0.75 0.47 1.88 22.28 5.30 59.66 3.10 8.92 0.77 10.30 0.40 29.30 1.10 14.35 1.66 0.64 8.95 0.33 4.37 0.20 4.00 5.58 5.55 3.64 44.92 0.43 2.40 0.44 2.45 0.34 7.99 239.83 0.68 0.50 - 18.61 0.73 22.10 0.84 33.92 0.35 34.85 5.30 109.40 9.65 56.71

High

High Low 1,017.94 994.86 Total cos Defaulter cos P/BV (x) ROE (%) 0.59 8.64 Low

Close Chg

1.50 0.61 0.61 -0.41 8.50 6.00 7.38 1.28 4.47 4.00 4.11 -0.24 24.00 21.86 23.75 0.99 2.80 1.76 2.27 0.20 10.35 9.50 10.15 0.00 13.00 9.67 12.00 2.75 13.70 12.76 12.94 -0.31 1.49 0.42 0.84 0.34 3.76 3.03 3.24 0.07 2.79 2.35 2.38 -0.27 12.25 12.25 12.25 -0.01 1.27 0.55 1.00 0.10 21.00 19.26 20.00 0.50 3.00 2.39 2.71 0.32 2.10 1.71 1.99 0.09 47.00 44.00 44.49 0.02 5.44 4.20 4.20 -0.30 6.79 2.90 4.47 -0.64 26.40 25.10 26.38 1.23 21.25 18.90 20.45 0.75 72.71 69.25 72.71 4.21 69.27 53.14 68.85 12.92 27.26 26.00 27.09 0.10 0.99 0.32 0.66 -0.08 4.30 4.00 4.01 -0.04 39.00 37.62 38.84 1.29 2.00 1.50 1.74 -0.21 6.80 5.02 6.48 0.43 3.50 3.26 3.49 0.22 7.30 5.85 6.20 -0.11 16.01 14.00 16.01 2.01 0.97 0.61 0.89 0.19 1.97 1.50 1.62 -0.16 1.35 0.55 1.02 -0.08 5.60 5.00 5.21 -0.28 0.60 0.36 0.56 -0.03 1.25 1.00 1.01 -0.29 1.00 0.75 1.00 0.25 0.88 0.28 0.49 0.02 23.46 22.28 22.65 0.37 64.44 59.99 61.70 2.04 10.45 8.66 9.17 0.25 10.55 10.25 10.50 0.20 29.29 25.00 25.00 -4.30 15.44 13.80 14.34 -0.01 1.80 1.54 1.56 -0.10 9.65 8.50 9.10 0.15 4.99 4.00 4.16 -0.21 4.44 3.67 4.00 0.00 6.74 5.70 6.69 1.14 48.90 43.60 47.88 2.96 3.00 1.55 2.20 -0.20 2.80 1.90 2.70 0.25 0.34 0.30 0.30 -0.04 246.95 231.50 233.33 -6.50 0.54 0.31 0.49 -0.01 19.00 18.40 19.00 0.39 23.20 22.04 22.08 -0.02 38.52 33.20 37.50 3.58 36.00 31.52 36.00 1.15 126.66 108.21 123.95 14.55 62.60 56.50 60.61 3.90

Close 1,008.66 Listed cap 47,070.70 mn Payout (%) 16.68

Volume

Change % Change 10.13 1.01 Market cap 200-Day High 134,044.02 mn Div Yield (%) 200-Day Low 2.46 -

Last 60 days High Low

5618 2.00 22101 8.50 1220430 17.77 53391 24.05 37769 3.45 30813947 12.32 20513 18.75 92672 14.50 5605 1.49 1573811 3.90 55528 3.33 5408 16.95 301807 1.49 24338 23.90 50500 3.00 523235 2.37 313333 47.00 50001 8.00 9192 7.44 12625 30.17 81415 25.45 5501 72.71 164552 69.27 7280 27.26 22133 0.99 130316 4.88 118003 40.77 41161 2.70 91839 7.29 14308 5.35 6202 9.50 5238 20.50 5744 1.25 347021 2.00 38922 2.00 139179 6.10 34635 0.98 6102 2.08 5128 1.39 81589 0.95 11275584 25.14 23806244 64.44 115523 10.45 11820 11.25 16710 31.03 86104 19.75 307095 2.30 86576 12.00 373049 6.85 104543 6.20 106014 8.69 17043 48.90 53029 3.00 29104 2.99 10000 0.48 14315 276.50 9109 1.10 25499 21.90 60344 24.00 106246 38.52 11207 36.40 1485997 126.66 1158618 62.60

0.52 2.60 4.00 18.50 1.32 9.50 8.10 9.05 0.12 3.00 2.26 8.41 0.16 17.89 0.99 1.44 36.10 3.00 1.80 20.80 17.21 41.00 37.25 19.99 0.30 3.35 34.05 0.30 2.02 2.60 4.05 13.25 0.26 1.01 0.16 4.51 0.14 0.35 0.60 0.14 15.66 45.81 5.16 7.65 25.00 12.51 1.29 8.01 2.01 3.50 5.08 27.50 1.04 1.10 0.12 169.00 0.18 15.61 15.26 29.00 15.00 86.50 37.25

2009 Div BR (%) (%) 20 7.5 5 20 12.5 7.5 20 35 200 20 15 20 -

2010 Div BR (%) (%)

10 30 20 7.5 - 15B 20 10 15 5 20 10B 35 -100SD 70 - 12.5 10 20 10 20 5B 5 50R 15 25 45R 10B 10 10B 50 30 - 25SD 10 - 100R 60 5 45 20 50 25 20B 80 20B -

Performance of SR Pharma and Bio Tech Index Open 931.08 Turnover 903,114 P/E (x) 7.59 Company

Paid up Cap(mn)

Open

High

High Low 1,011.33 927.44 Total cos Defaulter cos P/BV (x) ROE (%) 1.69 22.31 Low

Close Chg

Close 969.92 Listed cap 3,904.20 mn Payout (%) 44.54

Volume

Change % Change 38.84 4.17 Market cap 200-Day High 32,569.81 mn Div Yield (%) 200-Day Low 5.87 -

Last 60 days High Low

399343

Fundamental Highlights As on Dec 31, 2009

Technical Analysis

Change % Change -13.45 -0.78 Market cap 200-Day High 229,600.25 mn Div Yield (%) 200-Day Low 0.80 -

PHARMA AND BIO TECH

29323

353513

20B -

Performance of SR Household Goods Index

Change % Change -2.75 -0.18 Market cap 200-Day High 32,867.30 mn Div Yield (%) 200-Day Low 15.72 -

Last 60 days High Low

High Low 1,186.95 1,151.95 Total cos Defaulter cos P/BV (x) ROE (%) 1.09 25.35

75.99 71.00 74.26 3.22 179.90 160.95 175.63 13.78 128.90 120.00 122.76 1.14 2.89 2.28 2.40 0.20 4.93 4.42 4.58 -0.12 12.39 11.00 11.14 -0.25 257.25 251.51 252.67 -1.34 70.06 68.04 69.10 0.99 21.20 19.75 20.50 0.75

4.85 49.49 47.75 0.98 12.32 13.00 9.74 6.50 6.48 3.87 4.05 3.23 20.00 20.98 7.40 34.83 36.50 11.80 12.36 12.80 2.94 84.87 87.90 3.42 57.90 59.45 0.60 6.09 6.50 22.08 48.58 61.98 3.70 23.65 26.25 13.52 13.90 0.88 6.19 6.40 2.30 2.50 1.03 13.85 14.40 16.52 11.50 12.30 20.36 4455.10 4610.00

Performance of SR Industrial Engineering Index Open 1,540.33 Turnover 1,253,622 P/E (x) 8.37

High

Open 1,727.54 Turnover 2,867,557 P/E (x) 38.22

Company

Change % Change -14.18 -1.38 Market cap 200-Day High 73,166.53 mn Div Yield (%) 200-Day Low 2.46 -

2010 Div BR (%) (%)

Performance of SR Food Producers Index

CONSTRUCTION AND MATERIALS Open 1,027.82 Turnover 37,258,222 P/E (x) 7.75

60.05 32.36

2009 Div BR (%) (%)

FOOD PRODUCERS

20B

Performance of SR Construction and Materials Index

Open

144 5.63 71.04 101 5.25 161.85 626 8.90 121.62 890 2.20 450 3.18 4.70 1428 - 11.39 786 5.77 254.01 823 11.00 68.11 150 3.82 19.75

2010 Div BR (%) (%) 30 40

Change % Change -0.50 -0.07 Market cap 200-Day High 12,750.81 mn Div Yield (%) 200-Day Low 2.03 -

Performance of SR Automobile and Parts Index

Company

Change % Change 59.10 5.99 Market cap 200-Day High 10,284.84 mn Div Yield (%) 200-Day Low 9.45 -

Close 743.37 Listed cap 3,242.17 mn Payout (%) 11.08

INDUSTRIAL METALS AND MINING Performance of SR Industrial Metals and Mining Index

High Low 761.60 714.55 Total cos Defaulter cos P/BV (x) ROE (%) 1.39 25.53

WorldCall Telecom Limited

AUTOMOBILE AND PARTS

Company

CHEMICALS

Company

Open 743.87 Turnover 466,652 P/E (x) 5.46

Alert ! Unusual Movements

11,391.57 11,460.64 11,258.60 h77.33

INDUSTRIAL TRANSPORTATION

853

Pak Refinery Limited

Current High Low Change

8,242.14 8,288.63 8,175.01 h49.87

Performance of SR Industrial Transportation Index

Attock Petroleum

Pak Oilfields

Current High Low Change

KSE 30 Index

OIL AND GAS

Attock Refinery

Pak Petroleum

All Share Index

Performance of SR Oil and Gas Index Open 1,525.21 Turnover 41,730,958 P/E (x) 11.17 Company

KSE 100 Index

Symbols

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

979 250 1707 165 96 306

9.46 102.26 6.73 84.00 14.80 78.55 7.58 26.28 11.10 129.00 5.49 61.00

110.99 102.00 107.90 5.64 93.60 84.00 89.08 5.08 87.98 79.02 82.28 3.73 27.90 26.46 27.36 1.08 146.40 132.00 139.56 10.56 62.00 59.50 61.00 0.00

160764 68855 558769 25261 5462 40390

110.99 113.00 87.98 27.90 146.40 64.50

85.10 82.20 65.00 22.60 115.90 59.50

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

20B 15B

2010 Div BR (%) (%) 20 30

20B -

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

58.46

Total Assets (Rs in mn)

MA (10-day)

2.80

Total Equity (Rs in mn)

MA (100-day)

2.23

Revenue (Rs in mn)

MA (200-day)

2.44

Interest Expense

1st Support

2.61

Loss after Taxation

2nd Support

2.49

EPS 10 (Rs)

1st Resistance

2.87

Book value / share (Rs)

2nd Resistance

3.01

PE 11 E (x)

Pivot

2.75

PBV (x)

207,629.50 (525.11) 70,508.12 6,823.64 (14,641.22) (0.740) (0.02) (110.54)

KESC closed down -0.12 at 2.71. Volume was 275 per cent above average (trending) and Bollinger Bands were 218 per cent wider than normal. The company's loss after taxation stood at Rs1.782 billion which translates into a Loss Per Share of Rs0.09 for the 1st quarter of current fiscal year (1QFY11). KESC is currently 10.9 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into KESC (bullish). Trend forecasting oscillators are currently bullish on KESC.

Silkbank Limited

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

46.31

Total Assets (Rs in mn)

MA (10-day)

2.72

Total Equity (Rs in mn)

MA (100-day)

2.73

Revenue (Rs in mn)

MA (200-day)

2.98

Interest Expense

1st Support

2.60

Loss after Taxation

2nd Support

2.56

EPS 09 (Rs)

1st Resistance

2.69

Book value / share (Rs)

2nd Resistance

2.74

PE 10 E (x)

Pivot

2.65

PBV (x)

68,664.34 196.91 5,913.32 5,855.52 (2,902.91) (3.224) 0.22 12.21

SILK closed down -0.07 at 2.67. Volume was 66 per cent below average (consolidating) and Bollinger Bands were 57 per cent narrower than normal. The company's loss after taxation stood at Rs700.335 million which translates into a Loss Per Share of Rs0.32 for the nine months of current calendar year (9MCY10). SILK is currently 10.5 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 volume flowing into and out of SILK at a relatively equal pace. Trend forecasting oscillators are currently bullish on SILK. BOOK CLOSURES Company

From

D/B/R

Spot

AGM/Date

Husein Industries

28-12-2010

04-01-2011

Balochistan Glass#

28-12-2010

04-01-2011

Adil Textile

01-01-2011

07-01-2011

Summit Bank

01-02-2011

08-02-2011

20(R)

Atlas Bank

03-01-2011

10-01-2011

BOC Pakistan#

11-01-2011

17-01-2011

Pangrio Sugar

22-01-2011

31-01-2011

Mirza Sugar

22-01-2011

31-01-2010

31-01-2011

Arif Habib Inv#

01-02-2011

07-02-2011

INDICATIONS # Extraordinary General Meeting

31-12-2010 04-01-2011

Monday, December 27, 2010

FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 1,151.55 Turnover 25,754,502 P/E (x) 6.14 Paid up Cap(mn)

Company

High Low 1,174.17 1,128.48 Total cos Defaulter cos P/BV (x) ROE (%) 0.79 12.84

Close 1,143.89 Listed cap 50,077.79 mn Payout (%) 62.56

Open

High

Low

Close Chg

Volume

Pakistan Telecomm Co A 37740 12.85 Telecard 3000 0.67 WorldCall Tele 8606 -

19.25 2.41 3.19

19.52 2.50 3.45

19.02 2.22 2.86

19.27 0.02 2.25 -0.16 2.96 -0.23

6973086 1303519 17475954

Change % Change -7.66 -0.67 Market cap 200-Day High 78,815.30 mn Div Yield (%) 200-Day Low 10.19 -

Last 60 days High Low 20.12 2.69 3.45

18.15 1.92 2.32

2009 Div BR (%) (%) 15 -

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

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

204 6.62 369 6.12 279 7.05 457 6.96 121 1250 400 3.35 718 18.02 791 15.63 3000 41.08 350 303 6.21 252 4.36 253 4.38

Company

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

High Low 1,307.25 1,250.67 Total cos Defaulter cos P/BV (x) ROE (%) 1.28 9.35

Open

High

Low

3426 20.45 198 11572 6.76 1560 7932 1695 11.38 126 2.95 8803 4.92 3673 3.38 3541 24.90 191 3.50 1367 150 -

9.07 0.99 36.89 1.88 2.83 19.65 4.75 40.80 15.70 15.85 18.61 2.40 1.23

10.07 1.17 38.10 1.98 2.95 20.60 5.39 41.00 16.00 16.15 19.05 2.50 1.27

9.00 0.82 36.45 1.75 2.56 19.00 4.41 40.00 15.06 15.20 18.75 2.25 0.93

Close 1,267.85 Listed cap 95,369.29 mn Payout (%) 104.13

Change % Change -5.77 -0.45 Market cap 200-Day High 103,368.41 mn Div Yield (%) 200-Day Low 7.58 -

Close Chg

Volume

Last 60 days High Low

9.00 0.87 36.90 1.77 2.71 20.49 4.83 40.48 15.41 15.44 18.75 2.30 1.11

9004 55235 9302186 165368 6477422 51157 28089 667179 1465125 4644547 9000 774701 83653

11.25 1.45 38.10 2.25 3.29 26.50 5.70 41.96 16.00 16.70 23.49 2.80 1.75

-0.07 -0.12 0.01 -0.11 -0.12 0.84 0.08 -0.32 -0.29 -0.41 0.14 -0.10 -0.12

9.00 0.60 32.75 1.20 1.95 17.95 4.01 38.35 10.51 11.01 17.98 2.05 0.65

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

31R -

2010 Div BR (%) (%) 50 - 7.8R 15 50 20 -

GAS WATER AND MULTIUTILITIES

Paid up Cap(mn)

Company Sui North Gas XD Sui South Gas

5491 8390

8.12 3.20

Open

High

27.20 20.19

28.00 21.70

High Low 1,567.48 1,483.09 Total cos Defaulter cos P/BV (x) ROE (%) 1.12 11.41 Low 26.35 20.34

Paid up Cap(mn)

27.27 0.07 21.27 1.08

Close 1,532.78 Listed cap 12,202.80 mn Payout (%) 66.79

Change % Change 47.42 3.19 Market cap 200-Day High 32,818.95 mn Div Yield (%) 200-Day Low 6.82 -

Last 60 days High Low

Volume 1529333 2150989

34.75 30.70

26.35 19.95

High

Low

Close Chg

66.49 63.30 64.25 -0.90 18.10 17.11 17.40 0.29 2.00 1.70 1.73 -0.24 11.10 10.52 10.74 0.19 36.40 35.00 35.12 -0.88 4.54 4.01 4.08 -0.11 10.20 9.62 9.75 -0.14 3.44 3.12 3.28 -0.04 15.25 14.47 14.54 -0.28 121.90 114.01 116.41 -3.15 29.17 26.00 27.80 1.77 2.65 2.46 2.57 0.02 2.79 2.40 2.42 -0.28 226.80 220.99 224.32 3.31 16.49 15.80 16.19 -0.05 2.95 2.40 2.48 -0.02 73.20 71.05 72.05 1.29 1.60 1.31 1.60 -0.04 3.12 2.84 2.91 -0.12 4.95 4.70 4.84 -0.06 2.08 1.91 1.99 -0.01 2.90 2.60 2.67 -0.07 8.19 7.70 7.80 -0.10 9.04 7.70 8.30 0.12 66.75 63.02 65.28 0.17

2009 Div BR (%) (%) -

2010 Div BR (%) (%) 20 15

25B

Last 60 days High Low

Volume 333391 4218096 668037 21453522 2452239 54978 3072645 456057 1409626 1467958 2181851 375843 631788 3231898 332124 2747264 26216648 26518 4580546 85228 1024493 4663121 458628 481558 4758122

Change % Change 6.87 0.60 Market cap 200-Day High 696,165.69 mn Div Yield (%) 200-Day Low 4.95 -

66.49 18.10 2.55 11.10 36.40 4.70 10.59 3.88 17.10 121.99 29.17 3.00 2.90 226.80 16.70 2.95 73.20 2.40 3.18 8.10 2.65 3.08 8.30 9.04 67.39

50.00 14.23 1.50 7.66 30.52 2.50 8.00 2.74 13.01 92.55 18.02 2.25 2.16 183.35 14.05 1.85 62.15 0.62 2.50 3.91 1.51 2.50 5.05 6.00 50.02

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

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

20 - 20B - 66R 55 -63.46R 10 -

NON LIFE INSURANCE

Paid up Cap(mn)

Adamjee Insurance

16870 16288 50602 124595 5007 205816 70343 156108 9736 1250238 62387 30032 5150 76219

High Low 792.39 763.57 Total cos Defaulter cos P/BV (x) ROE (%) 0.65 5.20

Close 772.42 Listed cap 11,111.34 mn Payout (%) 79.54

Change % Change 5.75 0.75 Market cap 200-Day High 47,929.48 mn Div Yield (%) 200-Day Low 6.37 -

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1237 25.02

86.92

91.75

86.05

86.32 -0.60

5632912

91.75

63.05

2009 Div BR (%) (%) 30

10B

2010 Div BR (%) (%) 10

High Low 959.87 907.65 Total cos Defaulter cos P/BV (x) ROE (%) 3.83 3.85

12.75 38.88 64.80 12.00 7.00 48.63 14.45 97.14 60.90 17.20 8.30 11.70 7.70 8.17

9.75 27.37 47.50 9.42 3.10 34.76 10.04 70.16 52.25 12.80 1.80 8.00 6.15 6.01

Close 907.65 Listed cap 2,290.72 mn Payout (%) 355.53

40 20 40 35 35 30 30 20 -

10B 25B 8.7B 20B 15B 20B

10 10 -

UPTO 5000 VOLUME

25R 10B 20B -

Symbols AATM SCLL EMCO GAMON KHTC BATA NESTLE MSOT BAWS QUET KCL GTYR YOUW TSBL DNCC FPJM HINO ALICO TSML NAGC ATEL SING SSOM AZTM TRPOL PKGI IDYM BTL GATI ISIL ZTL HMIM COLG GSPM PTEC OTSU PAKD PMRS ICL UNIC MIRKS JOPP SHNI GRAYS MEHT PECO GLPL TRIBL MQTM DATM SARD SKRS GFIL EXIDE RUPL KML GAIL FNEL SHCM SASML BPBL ANSS SHJS TRSM CLOV PGCL SHDT JVDC ADAMS AASM TREI ASFL SGML SZTM LAKST OLSM NATM KOHS LEUL FASM BELA KHSM REDT RMPL TICL BILF SCL BWCL BCL TOWL FANM SGPL POAF SIEM DIIL UPFL CPMFI BWHL TSMF SAPT SANE FRCL CWSM BFMOD MFFL HWQS SALT PAKL ESBL LPGL WYETH ILTM BIFO FECS HUSS GUSM ZAHT FTSM AWTX SFWF DREL PPVC FZTM RCML SFL PHDL ASIC MOON WAZIR PSEL FNBM DADX ISTM MSCL

Change % Change 4.80 0.53 Market cap 200-Day High 10,327.82 mn Div Yield (%) 200-Day Low 3.57 -

Open

High

Low

Close Chg

Volume

Last 60 days High Low

850 42.61 627 30.87

76.00 45.10

78.00 49.31

74.10 46.00

75.00 -1.00 46.00 0.90

60376 37302

86.95 49.31

Open 416.43 Turnover 15,796,025 P/E (x) 9.22

2009 Div BR (%) (%)

57.15 39.95

2010 Div BR (%) (%)

5513.33B 10 -

High Low 427.96 406.54 Total cos Defaulter cos P/BV (x) ROE (%) 0.27 0.91

Close 410.74 Listed cap 30,336.44 mn Payout (%) 99.56

Change % Change -5.69 -1.37 Market cap 200-Day High 28,202.82 mn Div Yield (%) 200-Day Low 3.29 -

Paid up Cap(mn)

AMZ Ventures

225

1.59

0.75

0.95

0.60

0.70 -0.05

225375

0.95

0.45

Arif Habib Limited

450 13.45

26.23

26.89

26.00

26.37 0.14

201482

28.95

24.40

25B

20B

Open

High

Low

Close Chg

Last 60 days High Low

Volume

2009 Div BR (%) (%)

2010 Div BR (%) (%)

Dawood Cap Mngt. XB

150

1.53

1.50

1.90

1.31

1.71 0.21

258121

2.14

1.05

Dawood Equities Grays Leasing

250 215

2.05 1.25

2.33 2.24

1.80 0.76

1.95 -0.10 1.12 -0.13

99797 17139

2.69 2.90

1.51 0.18

2121 18.06

2.66

2.94

2.58

2.89 0.23

399843

2.94

1.32

600 680.00

7.23

7.49

6.65

6.80 -0.43

16459

9.00

6.16

11.5

IGI Investment Bank Invest and Fin Sec

Invest Bank

2849

0.85

0.97

0.60

0.83 -0.02

128062

0.97

0.44

Ist Cap Securities

3166

3.49

3.95

3.47

3.50 0.01

139345

4.80

2.54

10B

Ist Dawood Bank Jah Siddiq Co

626 7633

0.64 -

1.93 11.59

1.99 11.93

1.05 11.18

1.80 -0.13 11.22 -0.37

91610 10588948

2.84 14.05

1.05 8.80

-243.778B 10

508 500

7.58

3.82 28.48

4.46 29.50

3.90 26.91

3.93 0.11 28.19 -0.29

1588505 44575

5.38 37.65

1.96 24.25

150

1000 27.50

6.65

7.15

6.50

6.60 -0.05

695266

7.59

5.10

Orix Leasing

821

4.90

6.85

7.09

6.33

6.67 -0.18

53174

7.29

4.50

Pervez Ahmed Sec

775

2.21

2.50

2.16

2.25 0.04

885276

2.70

1.35

-231.08R

Saudi Pak Leasing

452

0.65

0.90

0.59

0.81 0.16

29892

0.90

0.46

Sec Inv Bank

514 18.32

3.02

4.73

2.26

4.58 1.56

106230

4.73

1.65

EQUITY INVESTMENT INSTRUMENTS Performance of SR Equity Investment Instruments Index

2010 Div BR (%) (%)

Performance of SR Non Life Insurance Index Open 766.67 Turnover 7,718,284 P/E (x) 12.49

0.80 1.12 2.03 -0.11 -0.02 -0.13 1.04 8.14 -1.46 -0.08 -0.05 0.27 0.50 0.07

FINANCIAL SERVICES

JS Investment

Open

10.93 38.48 62.04 11.14 4.00 43.47 14.09 97.14 58.00 16.02 6.70 11.49 7.10 7.05

Performance of SR Financial Services Index

BANKS

Allied Bank Limited 7821 6.24 65.15 Askari Bank 6427 8.29 17.11 Atlas Bank 5001 1.97 Bank Alfalah 13492 13.77 10.55 Bank AL-Habib 7322 7.57 36.00 Bank Of Khyber 5004 5.44 4.19 Bank Of Punjab 5288 9.89 BankIslami Pak 5280 820.00 3.32 Faysal Bank 7309 4.69 14.82 Habib Bank Ltd 10019 7.27 119.56 Habib Metropolitan Bank 8732 8.50 26.03 JS Bank Ltd 8150 2.55 KASB Bank Ltd 9509 2.70 MCB Bank Ltd 7602 9.94 221.01 Meezan Bank 6983 8.57 16.24 Mybank Ltd 5304 2.50 National Bank 13455 6.29 70.76 Network Mic Bank 300 1.64 NIB Bank 40437 3.03 Royal Bank Ltd 17180 4.90 Samba Bank 14335 2.00 Silkbank Ltd 26716 2.74 Soneri Bank 6023 7.90 Stand Chart Bank 38716 12.77 8.18 United Bank Ltd 12242 7.67 65.11

Company

EFU Life Assurance New Jub Life Insurance

Performance of SR Banks Index High Low Close 1,172.81 1,131.73 1,150.65 Total cos Defaulter cos Listed cap - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.14 13.94 40.49

Paid up Cap(mn)

Company

JOV and CO JS Global Cap

Open 1,143.77 Turnover 87,382,179 P/E (x) 8.17 Company

Close Chg

Open 902.85 Turnover 100,494 P/E (x) 12.62

Company

Performance of SR Gas Water and Multiutilities Index Open 1,485.36 Turnover 3,680,322 P/E (x) 9.79

10.16 37.21 60.00 10.76 3.90 42.80 13.00 89.00 56.52 15.99 6.30 11.00 6.60 6.91

Performance of SR Life Insurance Index

Performance of SR Electricity Index

Paid up Cap(mn)

10.94 38.88 62.60 11.50 4.95 44.95 14.45 97.14 60.00 16.50 7.45 11.70 7.10 7.20

LIFE INSURANCE

ELECTRICITY Open 1,273.62 Turnover 23,732,969 P/E (x) 13.73

10.13 37.36 60.01 11.25 4.02 43.60 13.05 89.00 59.46 16.10 6.75 11.22 6.60 6.98

Open 1,301.03 Turnover 17,075,850 P/E (x) 15.45 Company

Paid up Cap(mn)

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

264 1375 525 780 65 200 113 524 581 760 397 1008 202 3180 1186 283 1200 184 1000 125 59 1000 2835 2841 872 454 264

High Low 1,336.44 1,278.81 Total cos Defaulter cos P/BV (x) ROE (%) 0.34 2.21

Open

High

Low

8.81 6.70 1.73 3.98 2.48 1.55 3.50 10.50 0.63 2.24 2.70 5.72 21.36 65.13 16.50 1.36 7.00 12.90 5.78 6.15 7.21 1.92 8.04 6.92 2.27 4.51 1.68

1.60 8.04 4.10 1.69 1.43 0.61 2.90 1.70 2.12 3.20 7.20 6.70 2.02 5.08 4.39 1.40 7.23 1.25 3.98 0.99 8.61 6.65 12.04 6.30 0.95 9.39 5.79

2.00 8.28 4.39 1.94 1.80 0.80 2.99 1.75 2.27 3.24 8.24 6.85 3.49 5.35 4.70 2.00 8.25 1.40 3.98 2.00 9.30 7.10 12.94 6.45 1.19 10.00 6.10

1.35 7.90 4.06 1.51 1.05 0.35 2.76 1.51 1.96 3.03 7.25 6.50 1.61 4.89 4.46 1.32 7.05 1.17 3.25 0.95 8.65 6.40 12.10 5.50 0.92 9.00 5.60

Close 1,304.15 Listed cap 29,771.58 mn Payout (%) 104.74

Change % Change 3.12 0.24 Market cap 200-Day High 17,527.40 mn Div Yield (%) 200-Day Low 10.54 -

Close Chg

Volume

Last 60 days High Low

2009 Div BR (%) (%)

2010 Div BR (%) (%)

1.41 8.04 4.30 1.75 1.09 0.62 2.80 1.68 2.00 3.13 8.09 6.64 2.35 5.21 4.62 1.85 7.28 1.29 3.70 1.23 9.23 6.60 12.55 6.09 1.00 9.20 5.90

30697 660517 9208 433004 8927 113917 12976 42073 358786 212357 196980 39455 6216 9743110 1047616 5724 209014 26417 30006 11187 6009 456969 1331262 1687460 356759 26372 7182

2.24 8.59 4.50 2.37 2.39 1.10 3.09 2.37 2.28 3.88 8.24 6.90 3.69 5.35 4.73 2.23 8.25 2.18 4.00 2.00 9.45 7.18 12.94 6.50 1.19 10.00 6.99

4.5 5 20 10 5 15 16.5 10

18.5 2.2 0 1.2 5 17 11 21 3 5 10 2.8 15.5 15 3 18 10 20 10 3 17 12.5

-0.19 0.00 0.20 0.06 -0.34 0.01 -0.10 -0.02 -0.12 -0.07 0.89 -0.06 0.33 0.13 0.23 0.45 0.05 0.04 -0.28 0.24 0.62 -0.05 0.51 -0.21 0.05 -0.19 0.11

1.05 5.85 2.70 0.90 0.90 0.16 1.73 0.86 1.30 2.56 5.11 5.80 1.06 2.65 2.31 1.11 5.15 0.56 2.25 0.30 7.51 4.50 7.90 3.50 0.79 7.75 4.71

Open 0.95 2.45 2.76 2.30 17.90 685.48 2489.75 19.89 5.25 40.03 9.00 21.51 1.41 2.75 2.60 1.31 134.50 19.85 34.25 16.70 17.00 18.82 3.50 2.97 1.00 6.62 348.75 47.00 43.97 71.75 3.82 0.80 880.00 7.20 2.34 32.07 80.00 47.52 31.70 6.03 54.50 7.95 12.45 51.38 56.00 261.25 61.02 1.99 8.30 0.45 1.01 2.92 4.00 187.60 36.49 2.50 4.25 8.72 7.00 5.60 0.90 5.03 93.89 1.78 71.50 18.72 13.97 58.90 16.57 25.01 1.85 4.71 5.92 6.00 326.25 2.00 10.55 5.19 1.81 33.50 1.25 2.99 0.90 2149.64 84.25 1.40 85.58 23.50 43.90 12.00 3.00 1.01 9.88 1270.04 9.70 1050.00 4.25 31.83 1.22 104.85 3.30 2.07 1.25 3.70 74.89 21.70 62.55 3.60 2.70 17.50 1099.81 183.00 53.50 51.95 11.19 6.16 2.98 1.35 89.00 7.28 639.99 2.05 405.00 34.00 130.35 40.95 16.00 7.95 8.25 162.00 6.20 21.54 7.00 7.00

High 0.95 2.98 3.90 2.48 21.15 705.00 2500.00 20.40 6.00 41.00 10.50 22.48 1.85 2.75 3.49 2.00 139.75 19.75 34.25 17.10 19.00 19.88 3.60 3.48 1.15 7.74 348.10 47.70 45.79 81.12 4.50 0.99 950.00 7.99 2.40 35.15 81.49 51.35 34.40 7.35 55.98 9.45 12.99 53.00 59.00 262.00 63.40 2.00 9.24 0.56 1.01 2.92 5.00 205.00 37.00 3.19 5.24 9.00 8.60 7.10 1.70 5.03 94.00 1.90 74.00 19.39 13.92 60.25 16.50 27.72 2.09 4.71 6.70 6.00 335.00 2.24 10.50 4.50 2.43 34.90 2.25 1.99 0.89 2298.00 90.00 1.94 89.85 23.50 43.50 11.00 3.49 1.64 11.65 1300.00 11.45 1124.00 4.35 31.83 1.95 104.85 4.74 2.48 1.44 3.70 74.89 21.70 63.00 4.00 2.92 19.25 1175.00 192.00 54.81 55.00 12.66 7.24 4.15 1.75 89.00 7.28 669.00 3.00 413.00 35.00 131.50 42.99 17.00 8.49 8.75 177.00 6.80 22.60 7.10 7.50

Low

0.95 2.27 2.34 1.50 17.05 670.00 2350.00 19.10 3.51 36.21 9.00 21.25 1.35 1.75 2.00 1.15 128.00 18.00 34.00 16.00 17.01 17.82 3.45 1.48 0.73 6.33 300.21 46.00 43.00 74.90 3.80 0.56 875.00 6.30 1.99 32.99 77.81 45.20 31.00 6.22 51.25 7.11 12.00 50.01 57.00 233.00 59.00 1.71 8.00 0.35 0.90 2.90 4.00 183.11 36.00 1.96 4.11 7.75 7.00 6.00 1.20 4.05 85.38 1.39 68.00 17.01 12.92 57.00 15.75 24.01 1.80 2.73 5.20 5.05 305.00 1.51 9.50 4.00 1.72 33.50 1.25 1.99 0.89 2050.01 82.98 1.30 81.31 21.15 42.90 8.10 3.15 0.98 10.20 1205.00 9.53 1005.00 3.25 30.26 1.11 100.00 2.99 1.55 1.10 3.50 66.13 18.35 61.50 2.60 2.12 15.50 1045.00 174.00 51.00 51.95 11.70 5.80 3.48 1.65 89.00 6.28 669.00 1.25 385.10 34.00 123.85 37.00 16.00 6.49 8.25 162.00 6.70 21.01 6.99 7.50

0.95 2.85 2.95 1.50 21.15 687.14 2450.00 20.25 5.50 36.21 10.50 22.40 1.74 1.75 2.87 1.95 131.41 18.95 34.00 16.54 17.01 19.88 3.52 1.49 1.15 7.10 324.71 46.50 44.94 80.60 4.24 0.90 944.50 7.06 2.20 34.03 81.49 46.57 34.34 6.95 51.25 8.02 12.10 51.97 59.00 249.75 61.08 1.90 8.25 0.48 0.90 2.90 4.05 198.50 37.00 2.29 4.30 8.50 8.60 7.10 1.20 5.00 93.71 1.65 69.00 18.40 13.25 59.25 16.25 27.72 1.99 3.73 6.40 5.16 319.24 1.51 10.05 4.50 2.00 33.50 2.25 1.99 0.89 2189.99 90.00 1.45 87.73 21.15 43.00 8.10 3.25 1.50 10.45 1242.50 10.55 1118.04 3.55 30.45 1.88 100.00 3.00 2.15 1.11 3.50 66.13 18.35 61.50 2.60 2.74 15.50 1100.00 180.57 54.81 55.00 12.40 6.74 3.80 1.65 89.00 6.28 669.00 1.25 401.90 35.00 123.85 37.00 17.00 6.49 8.75 177.00 6.70 21.01 7.10 7.50

Change

Vol

0.00 0.40 0.19 -0.80 3.25 1.66 -39.75 0.36 0.25 -3.82 1.50 0.89 0.33 -1.00 0.27 0.64 -3.09 -0.90 -0.25 -0.16 0.01 1.06 0.02 -1.48 0.15 0.48 -24.04 -0.50 0.97 8.85 0.42 0.10 64.50 -0.14 -0.14 1.96 1.49 -0.95 2.64 0.92 -3.25 0.07 -0.35 0.59 3.00 -11.50 0.06 -0.09 -0.05 0.03 -0.11 -0.02 0.05 10.90 0.51 -0.21 0.05 -0.22 1.60 1.50 0.30 -0.03 -0.18 -0.13 -2.50 -0.32 -0.72 0.35 -0.32 2.71 0.14 -0.98 0.48 -0.84 -7.01 -0.49 -0.50 -0.69 0.19 0.00 1.00 -1.00 -0.01 40.35 5.75 0.05 2.15 -2.35 -0.90 -3.90 0.25 0.49 0.57 -27.54 0.85 68.04 -0.70 -1.38 0.66 -4.85 -0.30 0.08 -0.14 -0.20 -8.76 -3.35 -1.05 -1.00 0.04 -2.00 0.19 -2.43 1.31 3.05 1.21 0.58 0.82 0.30 0.00 -1.00 29.01 -0.80 -3.10 1.00 -6.50 -3.95 1.00 -1.46 0.50 15.00 0.50 -0.53 0.10 0.50

5000 4703 4658 4504 4500 4146 3913 3669 3619 3606 3581 3044 3040 3000 2931 2914 2847 2816 2653 2605 2603 2509 2500 2500 2400 2344 2334 2300 2242 2201 2160 2132 2035 2030 2013 2012 1943 1921 1907 1896 1873 1809 1736 1703 1701 1663 1637 1615 1557 1537 1500 1500 1500 1419 1395 1098 1072 1062 1053 1006 1000 1000 932 930 912 876 870 813 751 662 660 640 625 567 567 541 525 517 506 501 500 500 500 432 414 405 404 400 385 320 310 302 301 280 256 217 202 200 192 186 152 151 150 136 135 116 110 101 91 54 37 35 22 19 16 13 11 11 10 10 9 8 8 7 5 5 5 4 3 3 3 2 2 1

BOARD MEETINGS

National Bank of Pakistan

KSE 100 INDEX

Bank Al-Falah Ltd

Nishat Mills Ltd

Company

Date

Fecto Sugar Mills Ltd

28-12-2010

Time

Kohinoor Sugar Mills Ltd

28-12-2010

11.30

The Thal Industries Corporation Ltd

28-12-2010

10.30

Khairpur Sugar Mills Ltd

29-12-2010

2:30

Shahtaj Sugar Mills Ltd

29-12-2010

11:30

Al-Noor Sugar Mills Ltd

30-12-2010

11:00

Faran Sugar Mills Ltd

30-12-2010

3.30

Shahmurad Sugar Mills Ltd

30-12-2010

3:00

Unilever Pakistan Limited

24-02-2011

2:30

Unilever Pakistan Foods Ltd

28-02-2011

2:30

11.30

TECHNICAL LEVELS Company

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position

Fair Value

Rs Recommendations

82.1

Buy

AKD Securities Ltd

61.96

Neutral

TFD Research

92.3

Positive

*Arif Habib Ltd AKD Securities Ltd

77.89

Support 1

11,785.80

MA (5-day)

11,833.67

Support 2

11,713.50

MA (10-day)

11,741.30

Resistance 1

11,904.00

MA (100-day)

10,488.31

Resistance 2

11,949.85

Technical Analysis

MA (200-day)

10,269.24

Pivot

11,831.65

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

KSE 100 INDEX closed up 72.08 point at 11,858.17. Volume was 10 per cent below average and Bollinger Bands were 29 per cent wider than normal. As far as resistance level is concern, the market will see major 1st resistance level at 11,904.00 and 2nd resistance level at 11,949.85, while

TFD Research

Technical Outlook Leverage Position

65.26 71.33 66.38 68.91 71.90 72.13

Free Float Shares (mn) 318.44 Free Float Rs (mn) 22,943.91 CFS Shares (mn) N/A CFS Rs (mn) N/A CFS Rate N/A ** NOI Rs (mn) 164.56

Index will continue to find its 1st support level at 11,785.80 and 2nd sup- * Target price for Jun-11 & **Net Open Interest in future market port level at 11,713.50. NBP closed up 1.29 at 72.05. Volume was 42 per cent below average and Bollinger Bands were 28 per cent wider than normal. and is displaying an upward trend. Volatility is extremely low when compared NBP is currently 6.6 per cent above its 200-day moving average and is disto the average volatility over the last trading sessions. Volume indicators reflect playing an upward trend. Volatility is low as compared to the average moderate flows of volume into INDEX (mildly bullish). Trend forecasting oscil- volatility over the last 10 trading sessions. Volume indicators reflect modlators are currently bullish on INDEX momentum oscillator is currently indicat- erate flows of volume into NBP (mildly bullish). Trend forecasting oscillaing that INDEX is currently in an overbought condition. tors are currently bullish on NBP.

Brokerage House

AKD Securities Ltd

Brokerage House

Fair Value

Rs Recommendations

34.7

Sell

*Arif Habib Ltd

Accumulate Negative

32.06

TFD Research

29.1

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

65.47 35.81 30.52 29.95 35.88 35.75

326.94 11,916.91 N/A N/A N/A 42.40

*Arif Habib Ltd

Positive

AKD Securities Ltd

10.25

Accumulate

TFD Research

14.01

Positive

Technical Analysis 60.28 60.94 51.10 51.14 62.38 62.22

175.80 10,846.86 N/A N/A N/A 86.03

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

61.81 10.68 9.15 9.83 10.74 10.81

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

Pakistan Petroleum Ltd

Pakistan State Oil Co Ltd

Brokerage House

Fair Value

Rs Recommendations

365.4

Buy

*Arif Habib Ltd

218.3

AKD Securities Ltd

43.29

Buy

AKD Securities Ltd

276.6

Neutral

TFD Research

239.15

TFD Research

36.85

Positive

TFD Research

360.05

Positive

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

51.01 30.68 26.87 26.99 30.51 30.67

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

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

64.69 288.93 270.65 280.24 293.19 292.92

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

Rs Recommendations Hold Positive

Technical Outlook

Technical Outlook 182.55 5,465.54 N/A N/A N/A 49.09

674.58 7,244.97 N/A N/A N/A N/A

BAFL closed up 0.19 at 10.74. Volume was 69 per cent below average (consolidating) and Bollinger Bands were 39 per cent wider than normal. BAFL is currently 9.2 per cent above its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into BAFL (bullish). Trend forecasting oscillators are currently bullish on BAFL.

*Arif Habib Ltd

Leverage Position

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

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

Buy

Technical Analysis

Buy

Technical Outlook

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

NML closed up 2.04 at 61.70. Volume was 63 per cent below average (consolidating) and Bollinger Bands were 15 per cent narrower than normal. NML is currently 20.7 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 NML (mildly bullish). Trend forecasting oscillators are currently bullish on NML.

Technical Outlook

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

Rs Recommendations

Buy

Technical Outlook Technical Analysis

Fair Value

Rs Recommendations

59.97 74.2

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

Dera Ghazi Khan Cement Co Ltd

Fauji Fertiliser Bin Qasim Ltd

Brokerage House

Fair Value

Technical Outlook

KSE 100 INDEX is currently 15.5 per cent above its 200-day moving average

*Arif Habib Ltd

Brokerage House

74.16 21,806.91 N/A N/A N/A 171.01

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

64.50 212.74 196.44 194.67 215.39 216.29

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

247.57 53,061.72 N/A N/A N/A 59.78

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

FFBL closed up 1.45 at 36.45. Volume was 178 per cent above average (trending) and Bollinger Bands were 8 per cent narrower than normal. FFBL is currently 21.9 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into FFBL (mildly bullish). Trend forecasting oscillators are currently bullish on FFBL.

DGKC closed down -1.08 at 29.94. Volume was 69 per cent below average (consolidating) and Bollinger Bands were 14 per cent wider than normal. DGKC is currently 10.9 per cent above its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into DGKC (mildly bullish). Trend forecasting oscillators are currently bullish on DGKC.

PSO closed up 8.07 at 294.04. Volume was 139 per cent above average and Bollinger Bands were 43 per cent narrower than normal. PSO is currently 4.9 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into PSO (mildly bullish). Trend forecasting oscillators are currently bullish on PSO.

PPL closed down -3.95 at 214.33. Volume was 57 per cent above average and Bollinger Bands were 7 per cent narrower than normal. PPL is currently 10.1 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 volume flowing into and out of PPL at a relatively equal pace. Trend forecasting oscillators are currently bullish on PPL.

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

RSI 1st 2nd (14-day) Support 45.46 2.95 2.65 67.09 63.40 62.55 49.91 62.60 62.20 41.28 23.45 23.05 50.32 26.25 26.10 58.83 85.60 84.85 65.10 17.20 16.95 44.36 9.95 9.75 58.81 325.30 322.70 50.81 118.75 117.95 61.81 10.60 10.40 49.33 3.20 3.15 51.09 9.65 9.50 57.56 2.25 2.20 51.01 29.75 29.60 67.83 3.30 3.20 43.26 2.75 2.70 45.35 43.20 42.90 41.86 74.40 73.85 69.32 195.20 193.25 45.10 14.40 14.25 53.39 5.10 5.00 65.47 35.70 34.95 74.37 117.75 114.05 62.20 114.70 113.00 59.47 36.55 36.25 66.68 141.20 140.35 48.88 251.65 250.65 48.93 3.85 3.80 51.16 1.75 1.70 46.55 2.50 2.45 44.21 11.15 11.05 56.39 40.15 39.85 58.46 2.60 2.50 68.39 13.25 12.95 51.72 75.00 74.20 67.82 221.90 219.45 50.26 2.85 2.80 65.26 71.60 71.15 53.34 22.40 22.15 41.43 18.30 18.15 49.72 2.85 2.80 60.49 2.00 1.95 60.28 61.10 60.45 66.62 168.40 167.50 46.30 2.85 2.80 50.77 2.20 2.10 47.55 2.20 2.10 35.17 6.70 6.60 66.44 288.00 284.75 64.50 211.75 209.20 36.03 68.30 67.45 64.69 292.00 289.95 49.58 19.05 18.85 67.73 206.05 204.50 39.35 27.10 26.90 65.30 13.90 13.75 44.09 21.00 20.75 44.54 2.20 2.15 37.73 3.65 3.60 65.54 63.65 62.00 56.29 2.90 2.85

1st 2nd Resistance 3.70 4.15 65.00 65.75 63.35 63.65 24.15 24.45 26.50 26.60 87.50 88.65 17.55 17.75 10.30 10.50 330.25 332.60 120.65 121.70 10.85 10.95 3.40 3.50 9.90 10.00 2.40 2.50 30.10 30.30 3.40 3.50 2.85 2.90 43.85 44.25 76.15 77.35 198.40 199.65 14.75 14.95 5.20 5.30 36.95 37.40 123.55 125.65 117.40 118.40 37.10 37.35 143.20 144.35 254.35 256.00 4.05 4.15 1.85 1.95 2.60 2.65 11.35 11.45 40.75 41.05 2.85 3.00 13.70 13.90 76.70 77.60 225.90 227.45 3.05 3.15 72.40 72.75 22.85 23.05 18.70 18.95 3.00 3.05 2.15 2.25 62.25 62.80 169.85 170.40 2.95 3.00 2.35 2.45 2.40 2.55 6.95 7.10 293.50 295.75 215.95 217.55 69.70 70.25 297.20 300.40 19.45 19.60 209.05 210.50 27.50 27.70 14.30 14.55 21.60 21.95 2.30 2.35 3.80 3.85 66.30 67.30 3.00 3.05

Pivot 3.40 64.15 62.90 23.75 26.35 86.75 17.35 10.15 327.65 119.80 10.70 3.35 9.75 2.35 29.95 3.35 2.80 43.60 75.60 196.45 14.60 5.15 36.15 119.85 115.70 36.80 142.35 253.35 4.00 1.80 2.55 11.25 40.45 2.75 13.45 75.90 223.45 2.95 71.95 22.60 18.55 2.90 2.10 61.65 168.95 2.90 2.30 2.30 6.85 290.25 213.40 68.85 295.15 19.25 207.50 27.30 14.15 21.35 2.25 3.75 64.65 2.95

No hurricanes, but bigger insurance bills on the way 8

Monday, December 27, 2010

Kudos for BISP life insurance launching 80pc of the work on health insurance has completed

PM directs Farzana Raja to expedite health insurance for poor ISLAMABAD: Federal Minister/Chairperson Benazir Income Support Programme (BISP), Farzana Raja talking to delegation of the State Life Insurance Corporation of Pakistan headed by Shahid Aziz Siddiqui, Chairman of the Corporation at BISP Secretariat.-APP

Workers compensation lawsuit

AIG to cough out $146 million HARRISBURG: American Insurance Group Inc. and its insurance affiliates have agreed to pay more than $100 million in fines and other penalties to resolve claims the insurer violated workers compensation regulations. New York-based AIG also agreed to pay about $46.5 million in additional taxes and assessments. The proposed settlement negotiated between AIG and insurance regulators in eight states would close out a probe into allegations the insurance giant under-reported some $2.12 billion of workers compensation premiums, Pennsylvania insurance officials said recently. State regulators accused AIG of reporting the workers compensations premiums as general or commercial automobile liability premiums. The violations occurred over a period of time, primarily before 1996, regulators claimed.

"Accurate company financial data is an essential ingredient of proper insurance regulation," said Robert Pratter, Pennsylvania's acting insurance commissioner. Under the terms of the settlement, AIG insurance companies will have to file restated financial statements by March 1 to reflect the reallocation of the $2.1 billion in premiums. The company also must submit to periodic monitoring by the states for a 24month period and agree to pay a fine of up to $150 million if it fails to meet the terms of a compliance plan. In addition to Pennsylvania, state officials in Delaware, Florida, Indiana, Massachusetts, Minnesota, New York and Rhode Island participated in the probe. But insurance regulators in all 50 states and the District of Columbia will split the $100 million in fines.

The deal must be adopted by at least 35 additional states by March 1. A call to an AIG spokesman was not immediately returned late Thursday. AIG became a household name in the US after the recent financial crisis and received the largest government rescue of any financial company. Its lifelines from the Federal Reserve and Treasury were worth $182 billion. It got into deep water after helping banks invest heavily in risky mortgage bonds by offering insurance-like protection against losses on those bonds. When the bonds lost value, AIG could not afford to pay the banks. The government covered the losses to prevent panic from spreading. AIG's chairman said recently the company will repay its bailouts and is developing a strategy for growth. -Agencies

US insurers fight against strict fiduciary standard NEW YORK: The insurance industry is ramping up its fight to stop regulators from imposing a strict fiduciary standard of care on people giving financial advice, claiming it would harm small investors. The National Association of Insurance and Financial Advisors (NAIFA), a lobbying group for brokers who primarily sell insurance and annuities, says a strict fiduciary standard would increase compliance costs for its members and force them to serve only wealthier clients to remain profitable. "There is a high chance that there will be a fiduciary standard," said Terry Headley, the group's president. "We are attempting to make sure it is flexible enough not to disrupt the business models of our members." As directed by the DoddFrank Act, the Securities and Exchange Commission is conducting a six-month study into whether anyone providing personalized financial advice

should have to put their clients' interests first. Brokers must show only that an investment is "suitable" for a client, while investment advisers must meet a strict fiduciary standard. Earlier, NAIFA presented a survey to the SEC showing that imposing a strict fiduciary standard on brokers may have unintended consequences, including increasing compliance costs as brokers demonstrate they are meeting the new requirements. The survey of more than 3300 NAIFA members found that, if compliance costs increased by 15 percent, most brokers would have to change their businesses by offering advice only to rich clients, increasing fees or stopping sales of securities. "From a practical standpoint, there's not much difference between an honest, ethical broker operating under a suitability standard as opposed to operating under a fiduciary standard," said one NAIFA mem-

ber who participated in the survey. "But what is required is a whole lot more paperwork." Barbara Roper, director of investor protection at the Consumer Federation of America and supporter of a strong fiduciary standard, questions what clients would really miss if brokers stopped giving advice. "People may be better off not getting services from insurance agents who often sell them high-cost products in the guise of providing them with investment advice," said Roper. There has been no indication of how much compliance costs would rise, said Neil Simon, chief lobbyist for the Investment Adviser Association. He believes any costs would be "minor and incremental." "This just reflects the scare tactics of NAIFA," said Simon. "We do not believe this provision will limit choice, but it will enhance investor protection." -Reuters

NIC scandal â&#x20AC;&#x2DC;top accusedâ&#x20AC;&#x2122; will deposit Rs100mn now LAHORE: Family members of Habib Ullah Warraich, prime accused in National Insurance Company (NIC) scandal have contacted FIA and made offer to deposit Rs100 million immediately besides assuring to pay the remaining amount through cheque. According to private TV channel, FIA had issued summons to wife and daughters of Habib Ullah Warraich and decided to include them in the investigation of the case. However they contacted FIA and held out assurance to deposit a sum of Rs 100 million forthwith and make payment of the remaining amount through cheque, therefore, they be not included in the investigation process. It may be recalled that Mohsin Warraich son of Habib Ullah Warraich has fled to London and FIA has frozen his bank account of one million dollars. FIA had also received information that wife and daughters of Habib Ullah Warraich were also holding accounts in different banks and Habib Ullah Warraich and his son Mohsin Warraich had deposited money into these accounts. -Online

Chinese apex regulator to tighten rules for insurers SHANGHAI: The China Insurance Regulatory Commission (CIRC) is planning to tighten regulations for insurance firms raising capital through subordinated debt, a draft review posted on its website showed last week. As part of overall efforts to manage risks in the sector, the CIRC plans to cut the debt ratio threshold and require those eligible to issue debt to define how funds raised will be used. Insurance firms that are going to issue subordinated debt need to be in operation for at least three years and be profitable in the most recent year. Insurers' audited net assets must exceed 1 billion yuan ($150.2 million), compared with the current requirement of 500 million yuan. -Reuters

ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani reiterated Government's commitment to institutionalise and extend social security package for the poor and vulnerable segment of the society. Despite economic difficulties and constraint the Government, he added, would not neglect the down trodden. The Prime Minister was talking to Farzana Raja, Chairperson of the Benazir Income Support Programme at the Prime Minister's House here. The Prime Minister congratulated the people and the Chairperson of BISP on the launch of "life insurance scheme" in collaboration with State Life Insurance Corporation, for the registered beneficiaries. This scheme, he said, would undoubtedly give a sense of economic security to the destitute and deprived sections of population particularly in the far flung areas of the country. The Prime Minister also appreciated the proposed Benazir Mobile Banking System being introduced by BISP for the poor beneficiaries. This system, he said, would not only facilitate the beneficiaries but ensure complete transparency in the disbursement of cash grant. The system initially being introduced in Larkana, Batgram, Layyah and Musakhel, he added, should soon be expanded to other areas as well. The Prime Minister directed the Chairperson BISP to expedite the health insurance scheme for the poor and complete the same for launching till the end of cur-

rent financial year. He also directed that the poverty survey through out the country should also be completed preferably till the end of June 2011. Earlier Farzana Raja, briefed the Prime Minister on the Benazir Insurance Scheme and Benazir Mobile Banking System being introduced shortly. The Insurance Scheme, she mentioned, would be launched on the 1st of January 2011 and the Mobile Banking System soon after. The Insurance Scheme, she said, would initially cover 10 lacs registered beneficiaries which would reach 50 lacs till June 2011. The registered beneficiaries in these districts, she said, would be given free mobiles by the mobile companies in collaboration with private banks along with 300 free minutes and Rs100/free balance. The Government of Pakistan, she added, would not be paying anything in this regard. Through this system, the beneficiaries would be able to know that their cash grant has arrived and other details on regular basis. As regards health insurance scheme, the Chairperson said that 80 per cent of the work has been completed and she hoped it would be launched within this financial year as per directive of the Prime Minister. The poverty survey, she added, is also progressing well and would be completed in the next six months or so. She apprised the Prime Minister of some of the difficulties in reaching out to the population in far flung areas particularly in Balochistan and Fata. She thanked the Prime Minister for his continuously guidance and support for various initiatives under the Benazir Income Support Programme. -Online

KSE insurers zigzag last wk Staff Reporter KARACHI: Insurance stocks showed some mix activities last week at the Karachi Stock Exchange (KSE) with around 7.8 million shares traded altogether in life and non-life stocks. Adamjee Insurance stood as the volume leader with 5.6 million shares followed by Pak

Reinsurance with 1.2 million shares. Top gainers of the week include IGI Insurance which jumped by Rs8.14 to close at Rs97.14 and Central Insurance was up by Rs2.03 to close at Rs62.04 while New Jubilee Insurance lost Rs1.46 to close at Rs58 and EFU Life Assurance was down by Rs1 to close at Rs75 to be the major losers of the week.

US health insurers face new rules over price hikes WASHINGTON: US health insurance companies that want to increase premiums by 10 percent or more next year would face tougher government scrutiny under new rules proposed recently. The rules, called for under the sweeping healthcare law passed in March, would require insurers with price increases of 10 percent or more in 2011 to submit data justifying the higher rates for states or, in some cases, the federal government to assess. While regulators cannot set health insurance rates, they can determine whether proposed increases are "unreasonable." The rules put further pressure on health insurers such as Aetna Inc, UnitedHealth Group Inc and WellPoint Inc, which suffered bad press and drew closer scrutiny by the US Congress and regulators this year when prices for some individual plans in certain areas rose more than 30 percent. The other dayâ&#x20AC;&#x2122;s proposal offers Wall Street and insurers more details on the rules, which analysts said were better than expected and lifted some uncertainty hanging over the industry. Shares of insurers, represented by the S&P Managed Health Care Index, rose 1.5 percent after the proposal was announced, but later pared their gains and were up 0.5 percent, in line with the overall market. The rule is "not as bad as it could have been," Capital Alpha Partners analyst Kim Monk told Reuters. With its emphasis on the states' role, less federal oversight is likely over time and the US Department of Health and Human Services (HHS) "will get out of the rate review business entirely, with this just being a stopgap." The proposal also pushes back implementation until July, which gives companies more time to seek possible changes, she added. Health insurers largely fought Democrats' healthcare overhaul but have since said they will work to implement it. Republicans, who are set to take over the US House of Representatives next month, have vowed to repeal the law. Karen Ignagni, head of the healthcare industry lobbying group America's Health Insurance Plans, said the 10 percent threshold does not adequately account for all the factors insurers face when setting rates and that overall higher healthcare costs are a major factor. "The public policy discussion on healthcare costs has focused on health insurance premiums while ignoring the root causes that are driving up the cost of coverage," said Ignagni. Jay Angoff, head of the Office of Consumer Information and Insurance Oversight at HHS, said the proposed rule "strikes the right balance" between companies and consumers as well as state and federal roles. "We believe that it maximises consumer protection and transparency without unduly burdening the industry," he told a news conference. Under the draft, healthcare insurance plans for large groups, such as those offered by many big employers, are not subject to the review. Still, insurers would have to submit a host of data to regulators about how they set their higher prices, including a threeyear history of rate increases for the specific insurance plan, details on the plan's medicalloss-ratio spending, and data on employee and executive compensation. -Reuters

Drug cheat US tennis player has year cut from ban

Monday, December 27, 2010

Clarke sad over Australian batting-dud MELBOURNE: Australia vice captain Michael Clarke lamented another top order batting collapse that sent the hosts crashing to a record low first innings on day one of the fourth Ashes test against England in Melbourne on Sunday. Australia's 98 from only 42.5 overs eclipsed the previous lowest of 104 against the tourists at the Melbourne Cricket Ground, set in England's inaugural test tour in 1876/77. England's Alastair Cook and Andrew Strauss then survived three hours to stumps, compiling 157 to give the hosts a 59run lead and boosting the tourists' hopes of their first Ashes triumph on Australian soil in 24 years. "It's obviously very disappointing. I would have liked another 150 runs on the board," Clarke, who topscored for Australia with a meagre 20 runs, told reporters. "I think if we could have managed to get 240-250 in our first innings on that wicket I think we would have been much happier. "We certainly have no excuses, we played some poor shots today. We obviously didn't show enough discipline. As we've seen when the sun's come out and dried the wicket out it's a really nice wicket to bat on now." Australia's batsmen slumped on a grassy, moist pitch that offered swing and varying bounce in the morning to be all out by catches behind the wicket. England's seamers James Anderson, Chris Tremlett and Tim Bresnan bowled tight, disciplined spells but had their work made easier by Australia's seeming determination to chase balls short of a length and swipe at deliveries when boxed in at the crease. Opener Phillip Hughes (16) was especially culpable, slashing a Bresnan delivery straight to Kevin Pietersen at gully while Brad Haddin (5) also gifted his wicket with a flatfooted drive that sailed straight to Andrew Strauss in the slips. With Mike Hussey dismissed by Anderson for eight and unable to mount another middle-order rescue, Australia face an enormous task to save the test and the series. -Reuters

Two Premier League games postponed due to icy weather LONDON: Everton's match at home to Birmingham City and Blackpool's game against Liverpool were postponed on Sunday as Premier League fixtures once again fell victim to freezing conditions in Britain. "There are several miles of frozen pipes, many of which burst during the course of Christmas Day night," Everton said on their website "Our stadium and safety teams worked round the clock but due to the rapidly deteriorating conditions -- and in the interests of safety and hygiene we have reluctantly taken the decision to postpone the game." Promoted Blackpool, who do not have undersoil heating at their Bloomfield Road ground, were forced to postpone their third successive home match due to a frozen pitch. The seasiders, who face a cluttered schedule of rearranged games, said on their website (www.blackpoolfc.co.uk) the match had been rescheduled for January 12. -Reuters

NZ lay Pak to rest by 5 wickets

AUCKLAND: New Zealand bowler Tim Southee celebrates taking a Pakistan wicket with teammate Nathan McCullum during the first Twenty20 match.-Reuters

Eng shoot down Oz for 98 in a shocker MELBOURNE: England`s seamers scythed through Australia`s top order to leave the hosts reeling at 58 for four before rain brought an early lunch on the first day of the fourth Ashes Test in Melbourne on Sunday. England won the toss and sent Australia in to bat on a moist, grassy wicket in front of a huge crowd at the Melbourne Cricket Ground and were rewarded in the fourth over when paceman Chris Tremlett had Shane Watson out for five. Watson had survived two dropped catches before being trapped by a rising delivery that thudded into his glove and popped up for an easy catch to Kevin Pietersen. Watson`s partner, Phillip Hughes, never looked com-

fortable on a pitch that had the ball skidding and lifting by turns and was dismissed on the hour mark for 16, slashing at a Tim Bresnan delivery with the shot flying straight to Pietersen. Out-of-form Australia captain Ricky Ponting, playing despite a broken little finger, pulled James Anderson twice for boundaries in quick succession but was removed two overs after Hughes`s dismissal by a venomous delivery from Tremlett. Trapped in his crease and forced to play a delivery that moved off the seam, Ponting pushed a catch to Graeme Swann at second slip to be out for 10. The dismissal was Ponting`s fifth in succession for 12 runs or less and left Australia reel-

ing at 37-3. Mike Hussey survived a nervous 11 overs but was caught by wicketkeeper Matt Prior for eight off Anderson, who finally got a wicket after being earlier denied by two dropped catches. All rounder Steve Smith played and missed one delivery before rain saw lunch called five minutes early, with Michael Clarke on 12. England, who made one change to their side by bringing in fast bowler Bresnan for seamer Steve Finn, are out of referrals after two unsuccessful reviews. With the five-Test series tied at 1-1, victory in Melbourne would see England return home with the Ashes for the first time in 24 years. -Online

Aamir blasts off in Natâ&#x20AC;&#x2122;l Games squash PESHAWAR: Top seed and Asian Games gold and silver medalist Aamir Atlas off to flying start when he edged past Hamza Bokhari of Punjab in the thrilling five sets battle in the squash event of 31st National Games which got under way here at PAF Hashim Khan Squash Complex on Sunday. Sports Minister Balochistan was the chief guest on this occasion who formally inaugurated the event with players from all affiliated unites of the Pakistan Olympic Association are taking part. There was

draw of 16 players in the individual category with Aamir Atlas is the top seed. World No. 30 Farhan Mehboob is second seed as he won the same event in Quetta and Karachi National Games and is defending the title for the third consecutive year for Khyber Pakhtunkhwa. Aamir Atlas faced tough resistance against his strong rival Hamza Bokhari of Punjab as both stretched to five sets battle. The match lasted for 54 minutes with some fine shorts were also witnessed which were large

enjoyed by the sitting spectators. Aamir got the first two sets very easily by 11-7 and 11-6 but Hamza Bokhari staged a strong come back by the winning the third and fourth sets at 10-12, and 8-11. It was the five and decisive set in which Aamir exhibited a classic display of smashes and volleys by marching into victory at 12-10. In the other matches of the pre-quarter-finals, Sheikh Saqib of HEC beat Mujahid of Pakistan Army by 3-0, the score was 11-3, 11-8 and 119. -Online

AUCKLAND: The youngsters shone for New Zealand as they defeated Pakistan by five wickets in the first Twenty20 at Eden Park. Tim Southee ripped the heart out of the Pakistan line-up with a brutal spell of five for 18 in four overs, and Martin Guptill's fearless half-century ensured the chase went smoothly for the hosts. The visitors had rocketed to 58 for 1 in 5.5 overs before Southee struck five times in nine deliveries to derail the Pakistan middle order, using his height and pace to torment the batsmen on the quick, hard surface and throwing in the odd slower ball to keep them guessing. Guptill then attacked the Pakistan bowling with style and chutzpah, to get his team off to a rapid start, and continued to attack throughout his innings, despite the clatter of wickets at the other end. Martin Guptill began the New Zealand chase with gusto as he flayed Abdul Razzaq for 15 in his first over with two commanding strikes and a tickle down to fine leg, before hoisting Shoaib Akhtar for a giant six over square-leg. The pace of the Auckland pitch showed up three balls later as Jesse Ryder's thick edge off Shoaib flew to slip, standing almost at the edge of the circle, at shoulder height. Guptill continued to make merry despite the loss, hitting Shoaib for another six on the leg-side before the paceman struck again, this time to remove debutant Dean Brownlie for five. Scott Styris played an audacious uppercut off his second ball for six, but was undone soon after by Shoaib, attempting an ugly slog across the line to an indipper that pegged back leg stump. Shoiab had another, and the aeroplane was on show for the third time in three overs, but although there were breakthroughs, Guptill's fireworks at the other end had boosted the score to 55 in five overs. The Pakistan spinners provided some reprieve, but Guptill motored to his maiden Twenty20 fifty in 23 deliveries, hitting Wahab Riaz for consecutive boundaries and

lofting Mohammad Hafeez over long-on. The dazzling knock came to an end when he was run out attempting an illadvised single on 53, after having pushed the Pakistan fielders to the limit with swift singles during his stay. Ross Taylor was content to cruise alongside James Franklin while the spinners operated, with his side well ahead of the required rate. Hafeez picked up his second wicket when he hurried one onto Franklin, but with 29 runs to get in more than five overs, the victory was all but secured. A couple of trademark slog sweeps later, New Zealand were within striking distance, and Peter McGlashan finished the job for the hosts with 2.5 overs to spare. The Pakistan innings too was off to a rollicking start, thanks to some aggressive intent from the Pakistan openers. Shahid Afridi, having promoted himself to the top, wasted little time unfurling his signature slogs, while Hafeez also swung away with abandon to propel Pakistan to 36 in 3.5 overs, before the wickets began to tumble. Afridi was caught at midon by a backpedalling Ross Taylor, after New Zealand's other debutant, Adam Milne, had shelled a chance off the previous delivery. Pakistan kept the foot on the pedal as they raced to 50 in five overs. Southee then came on to cripple the innings with pace, movement and bounce to leave Pakistan reeling at 68 for 6. Southee's barrage included a hat-trick - New Zealand's second in Twenty20 internationals, and third overall - which accounted for Younis Khan, Hafeez and Umar Akmal, who was wrongly given out lbw. Umar Gul and Wahab Riaz were on hand for Pakistan, scoring invaluable thirties as the tail pushed Pakistan towards respectability with some sensible batting and a flurry of late boundaries. Southee's spell, however, had done the damage, and 143 proved too few to defend on a ground with a hard surface and short straight boundaries. -Online

Strauss says Melbourne crowd canâ&#x20AC;&#x2122;t scare England MELBOURNE: England will not be intimidated by a Melbourne Cricket Ground packed with a hostile Australian crowd for the fourth Ashes Test, captain Andrew Strauss said. The test gets underway on Sunday and officials have talked up the possibility of a record attendance for a cricket ground at the cauldron-like MCG on the first day. Strauss`s counterpart, Ricky Ponting, took a psychological swipe at England`s youthful side, saying he thought they could find the atmosphere intimidating with the five-Test series delicately poised at 1-1. "I`m sure he does," Strauss said of Ponting following England`s final training session at the MCG. "I don`t think we will, no. One of the things that`s important is that you`re ready for it and you`re not surprised by it." "It`s going to be quite a big spectacle and it`s out of the ordinary. We don`t usually play in front of that number of people." England, like Australia, will delay naming their side until before the toss on Sunday as they wait to gauge how the pitch develops. Strauss said the look of the wicket had given reasons for England to be optimistic about their chances following their struggles at Perth, where their batsmen were skittled cheaply in both innings on the WACA`s quick deck. "These conditions shouldn`t be that alien for us and should suit our style of play," he said. "I think Graeme Swann will come into the game more than he did in Perth, so there`s plenty of reasons for us to be optimistic about this game." "I can`t think of anything better than to come over and win the Boxing Day Test. That would be a very good feather in all of our caps." Strauss ruled out the possibility of Ian Bell being promoted above the out-of-form Paul Collingwood in the batting order, but was more cagey about England`s bowling lineup. England`s seamers appeared tired at Perth after being forced to bowl two innings in relatively quick succession, sparking calls for youngster Steve Finn, who was costly at the WACA, to be rested for Melbourne. Tim Bresnan has been favoured to come into the side, should Finn be omitted. "Finny`s done some really good things on this tour, taken quite a few wickets. He was probably a bit expensive at Perth if we`re honest, but he`s young and he`s learning," Strauss said. "We`re going to have think about what that best balance is before tomorrow and we`ll be naming the side at the toss." Agencies

DURBAN: India's Vijay gestures to his teammate Sehwag as South Africa's Steyn watches during first day of their second test cricket match in Durban. -Reuters

International

Monday, December 27, 2010

Civil war fears bulding up big exodus in ICoast

KHAN YOUNIS: Palestinians pray next to the bodies of militants Al-Najar and Abu Rok during their funeral.-Reuters

Confident on inflation after rate rise: Jiabao BEIJING: China's government will be able to keep inflation in check, Premier Wen Jiabao said on Sunday, a day after the central bank raised interest rates, and he pledged to speed up efforts to rein in house price surges. Steps taken in the past month, including administrative controls to curb speculation and monetary tightening, had started to produce results, Wen said. The People's Bank of China raised interest rates on Christmas Day for a second time in just over two months as Beijing strengthened its battle against stubbornly high inflation. Analysts said the latest rise showed that measures such as increasing banks' required reserve requirements to rein in liquidity were not enough on their own, and that the Chinese authorities were determined to keep inflation under control. "We have raised reserve

requirement ratio for six consecutive times and increased interest rates twice to absorb excess liquidity in the market to keep it at a reasonable level to support economic development," Wen said in a state radio broadcast a day after the rate rise. "I believe we can keep prices at a reasonable level through our efforts. As a major leader of the government, I have the responsibility and I have the confidence, too," he said in remarks published on www.cnr.cn. The rate rise came after Beijing said earlier in December it was switching to a "prudent" monetary policy, from its earlier "moderately loose" stance. "The rate rise shows China is quickening its pace to normalize monetary policies," said Ba Shusong, a senior economist with the Development Research Center, under the State Council, the country's cabinet. "The front-loaded tighten-

ing, before the peak of consumer inflation in the first half of 2011, is helpful to curb inflationary expectations," Ba was quoted as saying on the financial website www.caing.com. Chinese authorities have repeatedly stressed the importance of staying ahead of the curve in the battle against inflation. "Inflationary expectation is worse than inflation itself," Wen said in the radio broadcast. "When there is inflation, we must establish confidence, know our vantage points and take forceful and decisive measures in a timely manner to curb price rises." The central bank said on Friday it would deploy a range of measures to head off inflationary pressures and asset bubbles. China also intensified its property tightening measures in April and September in an attempt to brake soaring property prices.-Reuters

Militants killed as violence surges on Gaza GAZA CITY: Two rockets fired from Gaza landed in southern Israel on Sunday following a firefight in which two militants were killed, as Hamas said it was "ready" for another war. The escalation of violence comes just ahead of the second anniversary of Israel's devastating invasion of the Hamascontrolled Gaza Strip, and follows weeks of rocket fire from Gaza and a string of retaliatory Israeli air raids. Late Sunday morning, the Israeli military said two rockets fired from Gaza landed in the Eshkol region in the southern Negev desert, causing no injuries. The rocket fire came after Israeli tanks launched at least 10 shells towards Khan Yunis, damaging three homes, but causing no casualties. Earlier Sunday, two Islamic Jihad militants were killed during an exchange of fire with Israeli soldiers on the border of Gaza, according to witnesses

and the Al-Quds brigade, a militant Islamist group. Israeli officials confirmed the clash, which took place east of Khan Yunis, in southern Gaza. "Soldiers opened fire on members of a terrorist cell which was trying to place an explosive charge in the immediate vicinity of the security barrier," an Israeli army spokeswoman told. The barrier separates Israel from the Gaza Strip. "The incident happened in the south of the Gaza Strip and helicopters backed up the fire of the soldiers," she added. After a similar incident a month earlier, in which there were no casualties, "soldiers received instructions not to hesitate to open fire when they saw terrorists placing boobytrap devices near the barrier," she said. Tension has been rising on the Gaza border, where armed Islamist groups have fired dozens of mortars and rockets

into southern Israel. In response, Israel has launched a series of air raids, including most recently early Saturday, that it said targeted training facilities and smuggling tunnels. It has also launched targeted assassinations of several top members of the Army of Islam, a jihadist group accused by Israel of planning new attacks. Meanwhile, the Hamas militant group that controls Gaza has said it plans to continue observing a truce with Israel, but also warned it was ready to resume fighting if there is an Israeli attack on the territory. "There is a truce in effect in the field. It is real if Israel stops its aggression and ends its siege. But if there is any Israeli aggression on the Gaza Strip we will respond strongly," said a masked spokesman for Hamas' armed wing, AlQassam Brigades, who identified himself as Abu Obeideh.Reuters

Malawi seeks bidders for 300MW coal-plant LILONGWE: Malawi will in the coming months invite bids from investors willing to build a 300 megawatts coalfired power plant to meet its rising demand for electricity, Energy Minister Grain Malunga said on Sunday. Malawi has estimated coal reserves of 22 billion tonnes, according to the government, mainly located in the northern and southern parts of the country. The reserves are largely unexploited, unlike in some of the other countries in the

southern African region where coal is a major feedstock for power generation. "We are looking at constructing a coal fired plant to generate 300 MW of electricity...this is an alternative power source that would go a long way to generating more power to meet the growing demand in the country," Malunga told Reuters. Malawi generates most of its electricity from hydro sources. Its current installed capacity is 282.5 MW, below a demand

of 344 MW. Only seven per cent of Malawians have access to electricity, while the remaining 93 per cent depend on firewood and charcoal for energy requirements. The Economists Association of Malawi said that lack of reliable power supply is costing Malawi $215.6 million per year in lost industrial production. Last year alone, Malawi had 63 days of power outages, the most out of 24 sub-Saharan countries, the energy ministry said.-Reuters

Obama pays Christmas visit to Hawaii Marine base HONOLULU: President Barack Obama and first lady Michelle took time from their Hawaii vacation to drop by a Marine Corps base on Saturday, where they greeted service men and women during Christmas dinner. Obama, who has otherwise kept a low profile during the 11-day family holiday and stayed almost completely out of public view, visited the same base last year and the year before on Christmas Day. The president and first lady shook hands, posed for pictures, admired babies and chatted with Marines and their families in the mess hall decked out in Christmas decorations for about 40 minutes. "Did you get everything you wanted?" Obama asked one little girl, who brandished a bracelet, prompting the president to point out a presumably new bracelet on Michelle's wrist. The United States currently has around 100,000 troops on the ground in Afghanistan fighting Islamic militants. Obama said earlier this month his surge of troops into Afghanistan had made enough progress to begin withdrawing forces in July. The Obama's own Christmas dinner at their oceanfront vacation home will consist of steak, roasted potatoes and green beans, with pie for dessert, the White House said. "The first family is enjoying family and friends, enjoying their traditional Christmas Day activities and taking in a little NBA basketball," said White House spokesman Bill Burton.Reuters

Malaysian airline boss may buy Virgin Atlantic LONDON: The chief executive of Malaysia's AirAsia is considering a possible takeover bid for airline Virgin Atlantic, the Sunday Times newspaper reported. Tony Fernandes, who runs Asia's largest budget carrier by fleet size, has renewed his interest in the UK airline after previously considering and deciding against a bid, the newspaper said in an unsourced report. Any deal could be worth up to 1 billion pounds, it said. No one at Virgin or AirAsia could immediately be reached for comment. Billionaire Richard Branson has a 51 per cent stake in the airline he founded in 1984. Singapore Airlines paid 600 million pounds for a 49 per cent stake in Virgin Atlantic in 2000.-Reuters

ABIDJAN: At least 14,000 people have fled the violence and political chaos in Ivory Coast, some walking for up to four days with little food to reach neighboring Liberia, the UN refugee agency said. At least one child drowned while trying to cross a river. The UN has said at least 173 people have died in violence over the disputed presidential runoff election held nearly one month ago. The toll is believed to be much higher, though, as the UN mission has been blocked from investigating other reports including an allegation of a mass grave. "Food supplies are running short despite efforts by the government and humanitarian agencies to bring in more assistance," the UN refugee agency said in a statement late Saturday. "Our staff report that host community houses are full and congested. In the area of Butuo, for example, there are

homes where seven to 20 family members share a single room, while others sleep in corridors or on verandas." West African leaders have threatened a military intervention if the man who the UN says lost the election in Ivory Coast does not step down. James Gbeho, president of the regional bloc ECOWAS, said the group was making an "ultimate gesture" to Laurent Gbagbo to urge him to make a peaceful exit. Gbagbo has shown few signs that he plans to go, and his security forces have been accused of being behind hundreds of arrests, and dozens of cases of disappearance and torture in recent weeks. A Gbagbo adviser has said he does not believe their supporters are behind the attacks. Gbeho said the bloc would send in a high-level delegation to meet with Gbagbo, but did not give details on when the

Arctic showers cold-shoulder Moscow traffic MOSCOW: Railways and one international airport in Moscow region were affected by the power outage caused by freezing rain Sunday. The freezing rain, which hit the Russian capital on Saturday, has turned the city roads into icy sheets and caused major railway traffic disturbances in the Moscow region, RIA Novosti news agency reported. The power outage delayed railway services, including commuter trains, Moscow Railway spokesman Vladimir Myagkov told Interfax Sunday. Trains heading in virtually all directions have been delayed, he said. Meanwhile, the power sup-

ply in Moscow's Domodedovo airport has also been cut off, as the freezing rain prompted the airport to suspend its operations since 10:00 a.m. Moscow time (0700 GMT), a spokesman of the airport said. "Partial disruptions in power were caused by the cable disconnection due to the icing of the main power substations in the village of Volodarsky and in Podolsk," the spokesman said. The power disruptions in airport disabled passenger check-in systems, information systems and other airport infrastructure, but it will not affect the flight safety, Russian Federal Air Transport Agency Rosaviatsia said.Reuters

Religious clashes flare in central Nigeria JOS, Nigeria: Clashes broke out between armed Christian and Muslim groups near the central Nigerian city of Jos on Sunday, a Reuters witness said, after Christmas Eve bombings in the region killed more than 30 people. Buildings were set ablaze and people were seen running for cover as the police and military arrived on the scene in an effort to disperse crowds. "Houses are on fire all over the place and I can see injured people covered in blood being dragged by friends and family towards the hospital," the Reuters witness said. The unrest was triggered by explosions on Christmas Eve in villages near Jos, capital of Plateau state, that killed at least 32 people and left

74 critically injured. Vice President Namadi Sambo will travel to Jos on Sunday. "The vice president is on his way to Jos to make an effort to quell this crisis," Sambo's spokesman said. Hundreds of people died in religious and ethnic clashes at the start of the year in Nigeria's "Middle Belt," where the mostly Muslim north meets the largely Christian south. The tensions are rooted in decades of resentment between indigenous groups, mostly Christian or animist, who are vying for control of fertile farmlands and for economic and political power with mostly Muslim migrants and settlers from the north.-Reuters

delegation would go to Ivory Coast. ECOWAS also did not state a deadline for Gbagbo to hand over power to Alassane Ouattara, whose victory has been acknowledged by the UN, US, the African Union and the European Union. The threat of military intervention may add enough pressure to bring about a swifter resolution, said African security analyst Peter Pham. However, he questioned whether a force could be brought together quickly enough to have an impact. "Nigeria - the only real military power in the AU - is unlikely to have the stomach for a drawn-out military escapade on the eve of their own presidential election," said Pham, who is the senior vice president of the National Committee on American Foreign Policy in New York. Nigerian elections are expected in April.-Reuters

SK, China mily bosses to pow-wow in February SEOUL: Defence ministers from South Korea and China will hold talks in Beijing in February amid growing regional tension sparked by North Korea's nuclear programmes and hostile acts, South Korea's defence ministry said on Sunday. "South Korea's Defence Minister Kim Kwan-jin and his Chinese counterpart Liang Guanglie plan to meet in Beijing in February. Details of the meeting agenda have not been discussed yet," a spokesperson for South Korea's ministry said. Tensions have risen to their highest in decades on the divided Korean peninsula after the North bombarded a South Korean island last month, and revealed major advances in its nuclear programme. South Korean President Lee Myung-bak in November appointed Kim as new defence minister after Kim's predecessor resigned after criticism of what was perceived as a weak response to aggression from the North, including a submarine attack in March and the shelling of Yeonpyeong island last month. North Korea on Thursday threatened a nuclear "sacred war" and South Korea vowed a "merciless counterattack" against any fresh provocations as both sides sharpened their rhetoric after military exercises in the South. Pyongyang has offered to re-admit UN inspectors concerned about its nuclear weapons programme, prompting speculation that six-party talks including the North may resume, and the worst of the most recent crisis may be over.-Reuters

MOSCOW: People take part in a rally, called "Moscow for everyone. Russia without Fascism", to protest against xenophobic demonstrations after recent outbreaks of ethnic violence.-Reuters

Iran says market oil balanced and prices likely to increase

JERUSALEM: Israeli police detain Ahmad Daana on suspicion of throwing stones during clashes in Silwan.-Reuters

Ukraine detains former interior minister KIEV: Ukraine's security service detained former interior minister Yuri Lutsenko on Sunday, his political party said, the latest move in a crackdown on the previous government since President Viktor Yanukovich took power. "Lutsenko went out with his dog and turned around the corner to where there were no CCTV cameras," the People's Self-Defense party said in a statement. "There, 11 masked SBU servicemen... snatched him and took him away in a minivan," it said, referring to the SBU security service. Lutsenko's son ran after him and retrieved his phone and

the dog before the former minister was taken away. Neither the SBU nor prosecutors could be immediately reached on Sunday for comment. The state prosecutor's office this month charged Lutsenko with abuse of office, saying he had embezzled state funds. He has denied any wrongdoing and dismissed the charges as politically motivated. Lutsenko's case is the latest in a string of criminal probes against senior members of the previous government which culminated this month when prosecutors charged former Prime Minister Yulia Tymoshenko

with abuse of office. Tymoshenko has also dismissed the accusations as a political attack by the government of Yanukovich, who narrowly beat her in a February presidential runoff. Tymoshenko has been ordered not to leave the country and is regularly summoned by prosecutors for questioning but has so far avoided detention and arrest. Among other member of her government facing criminal charges are former economy minister Bohdan Danylyshyn and former environment minister Georgy Filipchuk.-Reuters

TEHRAN: Iran's OPEC governor Mohammad Ali Khatibi said on Sunday that the oil market was stable and the crude prices could reach $100 per barrel, the Oil Ministry's website SHANA reported. "It is unlikely that OPEC holds an emergency meeting ... There is a balance between supply and demand in the market ... It is possible that the price of crude reaches $100 per barrel," Khatibi said, SHANA reported. Oil hovered around its highest levels in more than two years on Friday, supported by cold weather across the globe, appetite for risk assets and signals from OPEC it would not arrest the rally. "In the opinion of the experts there is no need for an emergency OPEC meet under stable oil market conditions," Khatibi said. Analysts said oil could continue its rally on strong global demand and falling inventories in 2011, which promises to be a strong year for risk assets as confidence about the global economic recovery picks up. Khatibi said various issues could increase the price of oil. "The outbreak of unprecedented cold in Europe, America and China, the weak dollar and increased demand for fuel due to the holiday season have raised the price of oil to more than $90," Khatibi said.-Reuters

CONTINUATION determination to accomplish the goals she set before herself," he Continued from page 12 No #1 country and Pakistani flag would not be raised on the residence said. The history of the Third World fails to offer any other example whereby a leader rose to such a prominence and carved a role of Chief Justice but the government did all this. -Online due to qualities of the head and heart. Shaheed Mohtarma Benazir Continued from page 12 Bhutto made her mark in the world politics thanks to her political No #2 political imprisonment because democracy cannot survive wisdom and leadership qualities. She was an embodiment of courage and endurance who did not without free press. He further said 18th and 19th amendments are commencement of expulsion of non-constitutional clauses from allow her personal tragedies to stand in the way of her larger comthe constitution whereas intuitions have started working while mitment towards her people. She proved through personal example that she was a leader par being in their boundaries. -Agencies excellence. There is no adversity, big or small that Benazir Bhutto Continued from page 12 No #3 did not face starting from martyrdom of her father, her brothers, He said following these circumstances and demand of threats to her life to the rigours of exile and imprisonment. Kashmiris, PML-N has decided to establish its own political setup After every tragedy, she bounced back with renewed commitin Azad Kashmir. He vowed to not receive tickets from dictators. ment, more vigour and determination to serve her people. I recall He said during 2005 earthquake, he mobilized his party mem- that Shaheed Benazir Bhutto used to say: "Turn your personal bers while sitting in Saudi Arabia to immediately rush to the pain into your strength. You can conquer world with this calamity hit areas to help out people. He applauded the Kashmiri strength," he said. nation who bravely handled the circumstances and termed those There is a very select and rare breed of people who become were historic moments. immortal after their deaths. No doubt Shaheed Mohtrama Benazir He said, "I can still memorize the whole picture of earthquake Bhutto belongs to this category. She is a heartthrob of millions of devastation and I know how foreign world helped." He said bil- people and continues to rule their hearts and minds even in her lions of dollars aid came into Pakistan, but corrupt politicians and martyrdom. Her entire life is a unique role model not only for the leadership ruined it. They yet have to answer the question of how people of Pakistan but also of the world. She was an incarnation they mismanaged the aid, Nawaz Sharif added. of steadfastness, perseverance and determination. Her name He said I wanted to come to Pakistan myself in the time of would be chronicled in golden words in the annals of history. She earthquake, but a dictator never allowed me and time takes the writes in her book, "Daughter of the East", "I did not select this revenge. Today that dictator is out of the country and I am in, he life for myself. Rather this life has selected me for itself. " asserted. Sharif has categorically stated that he is not a friendly History would remember Shaheed Mohtarma Benazir Bhutto opposition and called upon the government to mend its ways for four things: firstly, the unwavering determination to reach out before the time runs out. to her people; secondly, the courage to take on huge and seemingSharif asserted that he was the one who brought revolution in ly insurmountable challenges, thirdly, the ability to forgive even the country, "We are the one who brought revolution; the nation is her enemies and lastly her undaunted espousal of cause of women running out of patience and it is high time for the government to emancipation and empowerment, he said. act and eradicate corruption from its ranks", he said. -Agencies She may not be with us today but her ideals and vision continue to enlighten our path. The principles and values she fought and Continued from page 12 No #4 On this occasion, my thoughts go to all those martyrs of the died for remain as relevant today as they were in the past. Those war against militancy. Our brave soldiers and members of law values form the mainstream narrative in our fight against multiple enforcing agencies have laid down their lives so that the nation challenges that we face today, he added. Furthermore, Pakistan Peoples Party's Central Executive lives in freedom and without fear. I also think of the martyrs of democracy who laid down their lives, suffered incarceration, Committee meeting has been deferred due to absence of Party's endured exile and tortured. Let us on this day rededicate our- chairman Bilawal Bhutto Zardari, who was due to chair the CEC selves to the mission of Shaheed Mohtarma Benazir Bhutto meeting.The BB murder probe report which was also to be prewhose life was dedicated to defending the country against dic- sented in the meeting also been put off. Minister for Law and Justice Babar Awan said that special meettatorship, extremism and tyranny, he said. On this occasion our thoughts go to all the martyrs who laid down their lives and ing of CEC would be called soon. many hundreds more who were maimed and wounded while Continued from page 1 No #6 protecting the life of their leader. There will be one branch each of the Sindh Bank in the 23 disI also salute all those who laid down their lives for the cause for their courage, devotion and loyalty. May the soul of Shaheed tricts of the province whereas two branches each would be set up Mohtarma Benazir Bhutto and that of all martyrs who laid down at the divisional headquarters. As many as 19 branches of the Sindh Bank will be established in other parts of the country. -NNI their lives for the cause, rest in eternal peace, he added. -Online

No #5

Continued from page 1

suspect any presence of terrorists around their houses or else. Regarding the drone attacks, the PM maintained that, "the drone attacks are proving to be counter-productive and we have asked the US to give us the said technology." The premier said that efforts are on to improve the country's economy. "We will take all the political parties on board before the Council of Economic Coordination meeting", the PM stated. Responding to a question on Shahzain Bugti's arrest and the subsequent situation, Gilani said that he would talk to Chief Minister Balochistan Nawab Aslam Raisani in this respect. "Balochis are patriotic people, we respect them we don't support the imprisonment of any innocent person", the PM added. Meanwhile in his message on the third anniversary of Benazir Bhutto, Prime Minister underlined that December 27 is a day of immense grief and national tragedy when Pakistan in particular and the world in general lost a leader of high stature in the person of Mohtarma Benazir Bhutto. "Even in her martyrdom, she continues to be a binding force among the federating units of Pakistan given the fact that her loss is being mourned across the country over and above political divide. Shaheed Mohtarma Benazir Bhutto's life is a classic study of courage, commitment towards people's welfare, and steel-like

11 Turkey's apology demand chutzpah: Israel FM

International & Continuation

Monday, December 27, 2010

JERUSALEM: Israel poured scorn on a fresh Turkish call to restore relations by apologising for its deadly raid on a Gaza-bound ship on Sunday, and said Ankara should be making amends. "I think the matter of an apology borders on chutzpah or beyond," Foreign Minister Avigdor Lieberman told Israeli diplomats in a speech attended by international media. "If anything, we are waiting for an apology from the Turkish government, and not the other way around." Lieberman was responding to a Turkish demand, reiterated by Foreign Minister Ahmet Davutoglu on Saturday, that Israel apologise and offer compensation for its marines' killing of nine Turks in clashes aboard the Mavi Marmara aid ship in May. The incident, following months of Turkish censure of Israeli policies towards the Palestinians, damaged relations between the Jewish state and its once-stalwart Muslim ally and NATO power. Envoys of the two countries held rapprochement talks in Geneva this month. Israeli officials say they broached a deal that would entail them expressing "regret" for the ship violence and paying damages to those bereaved or hurt, in return for a Turkish commitment to indemnify navy personnel against lawsuits. A formal Israeli apology

would only serve to fuel such legal actions, Lieberman's deputy, Danny Ayalon, has said. Lieberman and Ayalon hail from an ultranationalist party that is the often fractious junior coalition partner to Israeli Prime Minister Benjamin Netanyahu's right-wing Likud. Political sources say Netanyahu sometimes excludes Lieberman from more sensitive policymaking and sent one of his confidants to team up with the Israeli diplomat handling the Geneva talks. CREDIBILITY Turkish media quoted Davutoglu, a leading figure in Prime Minister Tayyip Erdogan's Islamist-rooted AK party, as casting doubt on the credibility of Israel's government on Saturday. "The fact that we have the will to make peace does not mean that others also have that will. Then this creates difficulty. It is very difficult to establish political will in Israel," Davutoglu said. He noted Turkey's quick dispatch of planes to help Israel battle a forest fire this month, and suggested that, had the situation been reversed, it would have taken "days" for the Israelis to behave likewise. Lieberman denounced those remarks as "lies," recalling Israel's aid airlift to Turkey after its 1999 earthquake. But he did acknowledge an Israeli contribution to the deadlock in U.S.-sponsored

negotiations with the Palestinians. "When you look at all of the components in the coalition, are we capable today of presenting a (peace) plan?" Lieberman asked rhetorically, citing sharp differences among the parties over how and if to meet Palestinian demands for statehood. He proposed a "Plan B," a long-term interim accord with the Palestinians, which he said he would be prepared to finalise and present "any time." He gave no further details. Israel says its marines opened fire in self-defence aboard the Mavi Marmara, an account disputed by the proPalestinian activists they faced. Israel has refused to ease its naval blockade on the Gaza Strip, saying arms shipments could reach the Hamas Islamists against whom it fought a war two years ago. Lieberman accused the Erdogan government of abetting the Turkish Islamist charity IHH, which sponsored the Mavi Marmara and other ships that tried to breach the blockade. Ankara wants Gaza's borders opened but distanced itself from the IHH mission. "If anyone should apologise, it should be the Turkish government to Israel over cooperation with terrorist elements, support for terrorism, support for the IHH, Hamas and (Lebanese) Hezbollah. There will be no (Israeli) apology," Lieberman said.Reuters

Two Gaza militants killed in clashes with Israeli army GAZA: Israeli forces killed two Palestinian militants Sunday morning in armed clashes near the Gaza Strip borders. According to a Chinese News Agency, the bodies of the two fighters were badly harmed, said a spokesman for Palestinian medical services, Adham Abu Selmeya, noting that the Israeli army had apparently hit the gunmen with artillery shells. Witnesses said they heard sounds of explosions, adding that the Israeli army had fired more than 10 shells during the clashes, which took place to the east of Khan Younis city in southern Gaza Strip.

The killing of the two militants, who Islamic Jihad movement claims belong to its military wing, came amid a new wave of cross- border violence which escalated for recent days. Palestinian militants increased firing rockets into Israel and the Israeli army stepped up retaliatory attacks in Gaza, targeting military sites of Hamas for the first time in nearly two years. Over the past few days, Hamas, which controls Gaza, renewed its commitment to the fragile ceasefire after the end of Israel's military incursion into Gaza in the winter of 2008-2009.

Eight U.S. tourists killed in Egypt crash: report CAIRO (Reuters) - Eight U.S. tourists were killed and 21 injured when their coach hit a stationary truck in southern Egypt, the state news agency MENA said on Sunday. The injured were taken to a military hospital where they were treated for fractures and cuts, the agency said. The bus driver and a tour guide were also hurt. The coach hit the parked truck on a road near Abu Simbel, the site of two temples dating from the time of Ramses II, MENA said.Reuters

Egypt stimulus plan worth up to $3.4bn

CAIRO: Egypt has adopted plan is based on making sure cent growth to absorb new a stimulus plan with the aim that government employees entrants to the labor force. of injecting 10-20 billion can borrow from the banking Boutros-Ghali said this pounds ($1.72-3.44 billion) system, with the guarantee month he expected the econinto the economy in the 2011 of their salaries," Boutros- omy to grow 7 percent in the calendar year, the country's Ghali said on the sidelines of financial year beginning in finance minister said on Egypt's ruling party's annual July 2011 and by 8-8.5 perSunday. conference in Cairo. cent the year after. The plan, based on letting Egypt's economy was Newspaper al-Akhbar said 5.7 million state employees growing by around 7 percent on December 15 that the borrow against salaries to in the three years until the finance ministry had conmake retail and other pur- global financial crisis tracted with National Bank chases, is expected to boost struck, slowing growth to of Egypt Banque du Caire economic growth by 4.7 percent in the 2008-9 fis- and Alexbank which is conContinued from page 1 No #7 between 0.50 and 0.75 of a cal year before recovering a trolled by Italy's Intesa On the other hand, biggest weekly buying was witnessed from percentage point, Minister little to 5.1 percent in 2009- Sanpaolo SpA , to provide local companies invested which $106.47 million of shares in the Youssef Boutros-Ghali told 10. the finance using the local bourse against the selling of $99.38 million, thus turning the Reuters. The government believes it employees' salaries as secunet buying worth of $7.09 million. "This non-budget stimulus needs a minimum of 6 per- rity.-Reuters Moreover, local individuals and mutual funds also joined local companies' trend as they net invested $4.06 million and $0.24 milContinued from page 1 No #9 lion respectively. The big portraits and banners of "Shaheed-e-Jamhuriat" have also been displayed in and around FIPI 16.33 (10.79) 5.54 the city. Large number of people will assemble at the site of martyrdom to pay homage to the brave INDV 154.28 (150.22) 4.06 leader and offer Fateha. Quran Khawani will also be held for the departed soul. -Online ORG 2.32 (2.44) (0.13) M-FUNDS 26.53 (26.29) 0.24 Continued from page 1 No #10 BANK 38.89 (55.28) (16.39) bank printed new currency notes for it and there is possibility of further increase in the budget COMP 106.47 (99.38) 7.09 deficit and inflation will further climb from 4.5 per cent to 7.5 per cent. NBFC 9.25 (9.66) (0.41) According to the sources, budget's deficit will exceed from eight hundred billion to one thousand, two hundred and fifty billion rupees in the new budget. The government requested nine months more Continued from page 1 No #8 time for the implementation of its promises with the IMF. Despite its all efforts, the government support for PPPP was given over the condition of eschewing could not implement six points of the agreement singed with the IMF including RGST. So the govpolicies of former President Pervez Musharraf; something PPPP ernment is not serious to approve the bill proposed by the State Bank. had failed to do. He reminded that JUI (F) had taken up the issue Continued from page 1 of country's integrity and security in 2008, but the issue was never No #11 taken up seriously. month-on-month basis surged 5 bps where they were 7.49 per cent in October 2010. He strongly rejected terming Pakistan as an ally of America, and Cost of deposits increased 5bps to 5.88 per cent while they were 5.83 per cent in previous month. stressed on reviewing the American policy regarding Pakistan. -Online Likewise lending cost up 10bps on monthly basis to 13.42 per cent.

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PML-N is not pro-govt: â&#x20AC;&#x2DC;Nâ&#x20AC;&#x2122; Leader

Sharif threatens more long marches against corruption MUZAFFARABAD: Quaid Pakistan Muslim LeagueNawaz (PML-N) Nawaz Sharif has presaged to hold another long march against current political leadership if they don't curtail the corruption and overcome inflation. He strongly criticised the present government as well as previous political setup while addressing a public gathering here in Muzaffarabad on Sunday. He denied the blame of playing the role of friendly opposition in the parliament and said PML-N is a friendly Pakistan party. He said dictatorship ousted his democratic government; otherwise the Kashmir issue would have been resolved. While talking about the Kashmir issue, he said postatomic test was the historic era

when Indian leadership itself came to agreement to hold bilateral composite talks to resolve all outstanding issues between both the countries including Kashmir issue, but Pervez Musharraf triggered up the Kargil War. He termed since then Musharraf, the hero of Kargil War, begged Wajpai the then Indian Prime Minister to hold dialogues. He intimated that it is the time of revolution. "We held long march for the restoration of judiciary and now we will hold another long march against corruption and inflation", Nawaz warned. Mian Nawaz Sharif recalled from the past and questioned from the people who raise slogans of revolution as to why 50 were killed when Chief Justice Iftikhar Muhammad Chaudhry

visited Karachi, and why he was not let to come out of airport. "Why these people kept holding their tongues while inflation was let to swell and why they were enjoying powers with a dictator", he queried. PML-N's Quaid pledged to bring revolution and said we did this earlier when we tested our nuclear arsenals. While talking about the organization of PML-N in Azad Kashmir, he said I always wanted to follow the lines given by our founding father Muhammad Ali Jinnah as he said Muslim Conference is the Muslim League in Kashmir. He further said now leaders of Muslim Conference have started to worship dictators, which is defiance from the mandate of Kashmiris. See # 3 Page 11

'Shaheed BB led the fight against militancy and embraced martyrdom:'

Zardari vows struggle to pursue BB dreams ISLAMABAD: President Asif Ali Zardari Sunday said that on the eve of the third death anniversary of Shaheed Mohtarma Benazir Bhutto on Monday while we pay tribute to her courage and leadership we also vow to continue to fight for the values she upheld and laid down her life for. President Asif Ali Zardari said these views in a message on the third Martyrdom Anniversary of Shaheed Mohtarma Benazir Bhutto Dec 27 falling today. Today we recall the dream she nurtured- the dream of a democratic Pakistan free of bigotry, extremism and militancy and of an egalitarian societyand vow to continue our struggle for the realisation of her dream. She hoped the blossoming of

the people so that each individual helped shape his own destiny. I call upon the Party workers, the youth, the workers and the people to join hands and work together for the realization of her hopes and dreams. True to her words Mohtarma Bhutto led the fight against militancy and embraced martyrdom. She illumined the path for all of us. On this occasion I wish to reiterate that the Party will continue to tread the path illumined by her with her blood, he said. Restoration of the democratic Constitution of 1973 was a cherished dream of Shaheed Mohtarma Benazir Bhutto. She led the relentless struggle to rid the Constitution of all undemocratic clauses that had been inserted into it by succes-

sive dictatorships. On her third death anniversary while we mourn her death we also celebrate the fulfillment of a cherished dream of her. The passage of the 18th Constitutional Amendment is a loud proclamation that in the struggle for democracy and peoples' rights she did not lay down her life in vain, he pointed. In her last public address she warned that the country was in mortal danger due to threat posed by the militants. She asked the people to join hands against the militants and vowed to personally lead the fight. Her advice to the people was, "Please continue the fight against extremism, dictatorship, poverty and ignorance", he said. See # 4 Page 11

LARKANA: Prime Minister Syed Yousuf Raza Gilani showering flowers on the grave of Shaheed Zulfiqar Ali Bhutto on the occasion of 3rd death anniversary of Shaheed Mohtarma Benazir Bhutto at Garhi Khuda Bakhsh Bhutto.-APP

Kaira says no retreat on RGST KARACHI: Federal Minister for Information and Broadcasting Qamar Zaman Kaira has said PPP has continuously been embracing the policy of patience for the last three years as its best weapon. He was holding a press conference here in Karachi Press Club on Sunday where he termed that logic of conflict with Muttahida Qaumi Movement (MQM) is not blackmailing, rather it is due to differences in viewpoints. He again stressed on the implementation of tax reforms and said government will never withdraw from Reformed General Sales Tax (RGST). He informed government has decided to develop consensus among its allies before its implementation. He said country is facing a lot of challenges and the key of them is corruption, which was planted by dictatorship and as a result unemployment and poverty prevails in country. He said if government of Zulfiqar Ali Bhutto had not been dismantled, country definitely were at a quite different stage comparing to past. He said there is no restriction on freedom of expression and journalism, nor there any See # 2 Page 11

'Allies quitting after enjoying 3yrs in govt

Altaf trying to become king, says Khurshid SUKKUR: Federal Minister for Labour and Manpower Syed Khurshid Ahmad Shah said that the allied parties are now talking about quitting the government after enjoyed the government for three years and hoped that the criticism could not harm the government and it would complete its tenure. Talking to media at airport on Sunday, Khurshid Shah said that Parliament has resolved all-important issues within last three years in the history of the country, adding opposition and media should appreciate it. Addressing the critics of government, the minister pointed out that the government was providing 150billion rupees subsidy to provide electricity on low

price to the masses. He made it clear that the Director General of ISI would not be sent to the United States, added Prime Minister had clarified it in the parliament. MQM Quaid Altaf Hussain should not try to become king of the country through such statements. We admitted the government launched several projects but it could not provide any relief to the masses yet but the load-shedding of gas and power would be ended till 2015 due to these projects completion, he underlined. He pointed out the upcoming governments after the present government, could not continue their functions without assistance. -Agencies

Awan terms 2011 as year of legislation SUKKUR: Federal Law Minister Babar Awan said that next year will become year of legislation, added that strong hurdles created against possibility of dictatorship through 18th and 19th amendments. Talking to media at airport on Sunday, Babar Awan said that the 19th amendment approved by National Assembly would be tabled in the Senate on December 30 and it would foil the ambitions of elements about confrontation among institutions. He said that President Asif Ali Zardari would announce new roadmap to resolve the problems of masses under the constitution and law, adding that the PPP wanted continuation of democracy while the remnants of dictatorship were chanting anti-democratic system slogans. The people strongly believe in the democratic system and the New Year will become semi final for the democracy. There are reports about changing of season, not government in the country, he added. The minister said that the killers of Shaheed Benazir Bhutto thought that the 1973 could not be restored and there would be no democracy in the See # 1 Page 11

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