The Financial Daily-Epaper-29-11-2010

International Karachi, Monday, November 29, 2010, Zil Hajj 22, Price Rs12 Pages 12

Young Presidents Organisation sends invitation

Delhi debates Musharraf’s visit

Muneeb seeks security for Sunni Ittehad rally Kayani starts second tenure Dubai may sell shares in SOEs

See on Page 12 See on Page 12 See on Page 12

See on Page 12

Zardari meets Lankan President, PM & FM

Economic Indicators $16.85bn 14.17% $7.17bn $12.25bn $(5.08)bn $(533)mn $3.50bn $569mn Rs 411bn $58.41bn Rs 4863bn $203.80mn -3.85% 4.10% $1,051 171.15mn

Forex Reserves (19-Nov-10) Inflation CPI% (Jul 10-Nov 10) Exports (Jul 10-Nov 10) Imports (Jul 10-Nov 10) Trade Balance (Jul 10-Nov 10) Current A/C (Jul 10- Oct 10) Remittances (Jul 10-Nov 10) Foreign Invest (Jul 10-Oct 10) Revenue (Jul 10-Oct 10) Foreign Debt (Sep 10) Domestic Debt (Aug 10) Repatriated Profit (Jul- Oct 10) LSM Growth (Aug 10)

GDP Growth FY10E Per Capita Income FY10 Population

Pak, Lanka ink MoUs to boost trade, end visa

Portfolio Investment SCRA(U.S $ in million)

161.20 Yearly(Jul, 2010 up to 26-Nov-2010) Monthly(Nov, 2010 up to 26-Nov-2010) 56.48 -3.24 Daily (26-Nov-2010) 3796 Total Portfolio Invest (19 Nov-2010)

NCCPL (U.S $ in million)

FIPI (26-Nov-2010) Local Companies (26-Nov-2010) Banks / DFI (26-Nov-2010) Mutual Funds (26-Nov-2010) NBFC (26-Nov-2010) Local Investors (2-Nov-2010) Other Organization (26-Nov-2010)

-0.41 0.60 -0.48 -0.02 -0.20 -0.10 0.60

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COLOMBO: President Asif Zardari and his Sri Lankan counterpart President Mahinda Rajapaksa witnessing the signing of different MoUs here on Sunday. -APP

Profit repatriation rises 2pc in 4mths Ahmed Siddique KARACHI: Repatriation of profit by the foreign companies rose 1.9 per cent in first four months of the fiscal year 2011, according to the State Bank of Pakistan data on sector-wise repatriation of profit.

From July to October 2010, the repatriation of profit by foreign companies in Pakistan rises to $203.8 million as against $199.9 million witnessed in the corresponding period last year.

During the period under review, profit repatriation on account of foreign direct

Extension in Commissioner's service

Finance ministry defies SECP Act Special Correspondent

Commodities Crude Oil (brent)$/bbl 85.58 Crude Oil (WTI)$/bbl 83.76 Cotton $/lb 111.76 Gold $/ozs 1,364.30 Silver $/ozs 26.77 Malaysian Palm $ 1,045 GOLD (NCEL) PKR 37,706 KHI Cotton 40Kg PKR 9,109

Open Mkt Currency Rates Symbols

Buy (Rs)

Australian $ 82.20 Canadian $ 83.40 Danish Krone 14.40 Euro 113.90 Hong Kong $ 10.90 Japanese Yen 1.003 Saudi Riyal 22.50 Singapore $ 65.55 Swedish Korona 12.55 Swiss Franc 86.85 U.A.E Dirham 22.95 UK Pound 133.90 US $ 85.40

Sell (Rs)

82.30 83.50 14.90 114.90 11.00 1.029 22.60 65.65 12.65 86.95 23.40 134.90 85.60

Inter-Bank Currency Rates Symbols

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

Buying TT Clean

Selling TT & OD

83.25 84.49 15.27 113.86 11.00 1.016 22.77 65.07 12.26 85.47 23.25 134.54 85.66

83.45 84.69 15.31 114.13 11.03 1.019 22.82 65.23 12.29 85.67 23.30 134.85 85.85

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investment (FDI) stood at $160.1 million -- representing 78.5 per cent of total repartition -- while on foreign portfolio investment (FPI) it stood at $43.7 million (21.5 per cent of total repartition).

Telecommunications sector remained the major contributor to this outflow in terms of dollar, as their companies sent $49.8 million against $42.7 million sent abroad by the sector in 4MFY10.

Similarly, repatriation of profit by the financial business rose to $33 million compared to $7.3 million during the same See # 4 Pgae 11

ISLAMABAD: Finance ministry in sheer defiance of clause 7 of Security and Exchange Commission of Pakistan (SECP) Act-2007 has sent recommendations to the prime minister for extension in the service of Tariq Asif Hussain as Commissioner.

As per SECP Act anyone who crosses the age limit of 62-year cannot be appointed as commissioner. On the other hand Tariq Asif Hussain who

has completed his service tenure as commissioner legal division in SECP has been recommended by finance ministry to be reappointed as commissioner.

Tariq Asif Hussain was appointed as commissioner on November, 26, 2007 and he had completed his service tenure on November, 26, 2010.

On the other side chairman SECP is going to complete his service period on November, 29, 2010.

See # 3 Page 11

Mutual Funds eject $6.1mn last wk

Offshorers pump $12.4mn into KSE Ghulam Raja Rajani KARACHI: Even though global markets remained depressed owing to eurozone debt crisis, border brushes between two Koreas, which dragged the global markets

down, but offshore investors in Pakistan -- putting aside the international concerns -- once again emerged as the net-buyer in equity market with $12.44 million worth of buying in the last week as per the National See # 5 Page 11

PM refuses to extend CDA officer job tenure ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani has rejected the summary, regarding extension of contract services for another year of CDA member finance Saeed-ur-Rehman.

The member finance CDA, whose post has been referred to another official on temporary basis has been allegedly involved in billions worth of scam in NLC (National Logistics Cell).

The 3-year old contract of Saeed-ur Rehman had expired on 1st Nov 2010, but was continuing his job on the directives of PM. However when contacted, the member finance said that his contract had been extended

by PM, and he was still on his said post. -NNI

4 killed in NWA drone attack PESHAWAR: At least four people were killed in a US drone attack, launched Sunday afternoon in North Waziristan Agency area (NWA).

According to a private television channel, a US drone fired two missiles at a vehicle suspected of carrying militants in the Hassan Kheil area of the agency, a stronghold of Taliban and al Qaeda militants, along the Afghan border.

As a result, four persons were killed and several others sustained serious injuries.

Starting from this month, a total of 17 strikes have been launched by the US drones against the militants in North Waziristan Agency, killing at least 84 people, most of whom were believed to be militants.NNI

l Revival of Joint Economic Commission discussed l Pak offers setting up sugar, cement plants l NBP branch in Colombo to be opened

COLOMBO: An array of separate bilateral meetings in Colombo by President Zardari with Sri Lankan Prime Minister and Foreign Minister at the delegation level and a one-on-one with the President of the host country followed by a banquet brought the two countries closer together than any time before in the past decades as their leaderships witnessed signing of four MoUs pledging to abolish visa, facilitate customclearance, cooperate in agriculture and promote Arts and Creative Studies.

The two leaders also agreed to work towards inking agreements enhancing trade and defence ties on the one hand and connectivity and cultural exchanges on the other.

Briefing journalists about the Sunday meetings in Colombo, spokesperson to the President Farhatullah Babar said the high water mark of the meetings was a decision to reinvigorate the Joint Economic Commission

and task it to work out modalities for a new and unconventional phase of economic cooperation marked by barter trade, currency exchange and banking interchanges.

The agreement came about after the two sides agreed that the present level of 300 million dollars of mutual trade was far below their true potential and keeping in view the scope of their political and cultural cooperation.

Babar said that the President offered Pakistan's help in setting up sugar and cement plants in Sri Lanka in return for import of Sri Lankan produce and manufactures in Pakistan as barter trade or in local currencies obviating the need for making payments in dollars thereby reducing pressure on their limited foreign exchange reserves.

Calling it as a "win-win situation for both" the President of Pakistan suggested that Finance Ministers of the two

countries should sit together immediately to work out the details-a proposal to which the Sri Lankan side agreed readily, he said.

The visa abolition agreement now allows holders of diplomatic and official passport to travel without visas- a step described by President Zardari as "critical for enhancing people to people contacts and improve connectivity".

They also agreed to start direct weekly air flights between the two countries from early next year and gradually improve the frequency of air flights.

"The success of the new economic and trade cooperation paradigm requires that the two countries laid special stress on improving connectivity", the President said during the interactions.

President Zardari also offered to open a branch of the National Bank of Pakistan in See # 1 Page 11

Death toll in Russian plane crash reaches 11

Dig starts into cargo jet crash in Karachi DNA samples taken; black box not found yet Staff Reporter / Agencies KARACHI: At least eleven people were killed when a Russian cargo plane crashed in a fireball seconds after taking-off from Karachi late Saturday night.

The death toll, reached at eleven, expected to rise, with an unknown number of labourers feared killed when the Ilyushin IL-76, bound for the Sudanese capital Khartoum, slammed into buildings in the city.

"All eight people on board have died, we fear that some labourers on the ground have also been killed," CAA spokesman said. "We do not know the exact number of those killed on ground," he added. Bodies of three labourers working on the construction site have also been recovered from the debris taking the toll to eleven, rescue authorities said.

The plane slammed into buildings under construction in the Dalmia neighborhood.

The samples of DNA have been taken from the bodies recovered from the debris heaped up of plane crash coupled with collapsed building.

Sindh Health Minister Dr Sagheer Ahmed declared emergency in all hospitals of the city as soon as the first report regarding the plane crash was received.

According to medico-legal experts, the bodies are hundred percent burnt down and hence beyond identification. The CAA spokesman said that the jet took off from Karachi at 1:45 am (20:45 GMT Saturday) and crashed just one and a half minutes later.

Witnesses spoke of their horror at seeing a fireball racing through the night sky.

"I saw a fireball plummeting to ground," a milk seller said. He had been going home on his motorbike after closing his shop.

Residents in nearby buildings spent the night with relatives, he added. Furthermore, a spokesman of Pakistan Navy, Commander Salman Ali said there was no loss of life due to crash of Russian cargo plane in Dalmia area in small hours of Sunday.

He said that there were some under-construction houses but no one was residing there. The See # 2 Page 11

EU nods $115bn in Irish bailout deal DUBLIN /BRUSSELS: European ministers are expected to sign off on an 85 billion euro ($115 billion) rescue for Ireland on Sunday, making it the second euro zone country to receive a bailout in Europe's crippling debt crisis.

Finance ministers from the 16-nation eurozone will meet in Brussels to sign off on Ireland's emergency loan package, which they hope will help Dublin cover bank debts and bridge a massive budget deficit, while also preventing the debt contagion spreading to Portugal and Spain.

EU sources said a team of specialists from the European Commission, the European Central Bank and the International Monetary Fund had finalised a deal with Irish authorities in Dublin after 10 days of negotiations.

"The negotiations are complete and a package has been agreed on the ground," a source involved with the discussions said.

"EU finance ministers are now ready to sign off on it, but I think they will also want to discuss some of the finer details and add some political

impetus to what has been agreed in Ireland," he said.

Sources say the package of loans will total around 85 billion euros. A major sticking point is the interest rate that will be charged and the term of the loans, which are expected to be between three and six years.

After eurozone ministers meet to discuss the package, all 27 EU finance ministers will gather in Brussels, with the expectation that the details of the bailout will be announced before financial markets open in Asia on Monday.

The president of the European Commission, Jose Manuel Barroso, told Europe 1 radio he hoped EU finance ministers would unanimously agree to support Ireland, which has been under intense pressure to accept a bailout despite repeatedly saying in recent weeks that it did not need one.

European leaders are hoping that the package for Ireland, drawn from a 750 billion euro rescue fund agreed by the EU in May this year, will convince financial markets that the crisis can be contained and spare Portugal and Spain-- the next

two countries identified as potentially at risk -- from pressure.

Debt worries have driven the crisis for the past year almost without respite. It has severely dented confidence in the 12year-old euro currency and produced what amounts to a showdown between European politicians and financial markets. The parties, Fine Gael and Labour, are expected to rout unpopular Prime Minister Brian Cowen's Fianna Fail party in an election that is likely to take place within months.

They have said they would be

bound by a rescue deal but may try to renegotiate details.

Both parties want bond investors who lent money to Irish banks to take on a bigger share of their country's bailout burden, rather than foisting it all on Irish taxpayers.

Jitters sent the shares of European banks which hold the debt of Irish banks tumbling on Friday. The euro also fell to a two-month low against the dollar and the borrowing costs of peripheral euro zone countries like Ireland, Portugal and Spain stood near record highs. -Reuters

2

Monday, November 29, 2010

Shifting of non-Sindhi employees during devolution

Sindh nationalists warn of resistance KARACHI: Nationalists of Sindh province have strongly opposed the process of handing over of nonSindhi government employees to the Sindh government from the federal government in the wake of devolution of ministries and divisions after the Passage of 18th Amendment.

The nationalists told PPI that the federal government had always violated the quota system and appointed non-Sindhi employees on the quota of Sindh based people so that in the name of devolution, a large number of non-Sindhi federal employees could be inducted in the provincial government, which is injustice with the Sindhi people.

They warned if the Pakistan Peoples Party (PPP) led Sindh government accepts non-Sindhi employees of federal ministries, we will launch a strong protest in the shape of hunger and shutter-down strikes besides blocking roads.

After the passage of 18th Amendment and abolition of Concurrent List, the 47 subjects will be transferred to provinces from the federal government. In the first phase, five ministries and divisions including Local Government and Rural Development, Zakat & Usher, Youth Affairs, Special Initiatives and Population Welfare Departments will be transferred to provinces of the country by the first week of December month.

The Sindh government has completed its home work in this regard with the help of Devolution Cabinet an Provincial Implementation Committees separately headed by the Syed Murad Ali Shah Provincial Finance Minister and Syed Ghulam Ali Shah Pasha Chief Secretary Sindh.

Dr Qadir Magsi Chairman Sindh Taraqi Pasand Party (STPP) said that

the PPP government is cheating the Sindhi nation in the name of devolution and provincial autonomy.

He said the federal government would not let any political party to award the full autonomy to the provinces. He questioned when the provinces are awarded with fullfledged powers then how will federation and the elder brother province (Punjab) will survive?

He said the PPP government has always sold the rights of Sindh in order to make their governmental chairs strong and it is also doing same in this tenure too.

Dr Magsi said the PPP celebrated the "Jashan" when it announced National Finance Commission (NFC) award but now it is working hard to impose the Reformed General Sales Tax (RGST) Bill in order to get the taxes with high rates from the people by the federal government.

He said with the shifting of federal ministries and the divisions, definitely all employees would be inducted in the provincial government, who are non-Sindhi in the ratio of 98 percent out of 100 percent.

He rejected the possible induction of non-Sindhi employees and warned that if Sindh government does not take stand on this very important issue, we will protest against it.

Bashir Khan Qureshi Chairman Jeay Sindh Qaumi Mahaz (JSQM) strongly rejected the devolution process & provincial autonomy and said that we are the followers of GM Syed who fought for the freedom of Sindh during his whole life.

He said PPP government has done nothing for the survival of Sindhi people who had voted them to power in the name of Shaheed Benazir Bhutto. He said Punjab has rehabili-

tated the flood survivors but the flood affectees of Sindh are still protesting against Sindh government for non-provision of Watan Cards.

Qureshi said PPP is heading the federal and Sindh governments so if it wants to do something for the Sindh, it can do but their leaders are busy in collecting the money.

He warned if the Sindh government gets the non-Sindhi employees from the federal government, JSQM will block the roads leading to the Punjab.

Ayaz Latif Palijo President Awami Tehreek and leader of Sindh Progressive Nationalist Alliance (SPNA) said Sindh government should establish a surplus pool for the non-Sindhi employees of federal ministries and divisions which would be shifted to the provincial government in the name of devolution.

He said that there is large number of jobless people in Sindh and due to recent heavy floods unemployment has increased in the province so after the devolution the Sindh government should appoint Sindhi people on the jobs of devolved ministries.

He said after the completion of devolution, Punjab, KhyberPakhtunkhwa and Balochistan domicile based employees should be transferred to their home provinces and Sindh domicile based employees should be demanded from other provinces and rest of vacancies should be filled with local Sindh domicile based people.

He warned if Sindh government does not settle this issue withy federal government with immediate effect, then the Sindh Progressive Nationalists Alliance and Awami Tehreek will lead a long strike against the Sindh government over this issue. -PPI

City Govt founds cell for Muharram Staff Reporter KARACHI: A special cell has been set up at the city government level in connection with Muharram-ul-Haram.

The cell will remain in operation till two months and 10 days. EDO Municipal Services Masood Alam has been appointed focal person in this regard by city government.

One track of Banaras Chowk Flyover will be opened for vehicular traffic in 10 days while the new road in Mehmoodabad will also be available for traffic within a week.

Meetings to review arrangements for Muharram-ul-Haram will also held at town's level in next two days to review the problems of "azadars' and finalization of arrangements for Muharram-ulHaram.

This was decided at a high level meeting chaired by Provincial Minister for Information Technology Raza Haroon here.

Sindh Minister Abdul Haseeb, EDO Municipal Services Masood Aslam, representatives of police, rangers, city government, town administrators and Ulema-karam attended the meeting.

Raza Haroon said that city government and town administration would work

during Muharram-ul-Haram with the same spirit they showed on recent Eidul-Azha.

He said that the town administration should take measures for cleanliness at the routes of Muharram processions within their limits while the street lights and road carpeting should also be done before Muharram.

He also asked KESC to change the load shedding schedule for Muharram and exempt the timings of load shedding during the holding of Majalis and Muharram processions.

He also directed that the members of national and provincial assemblies should be taken on board for meeting at the town level. He said that the Haq Parast representatives will continue to play their role in the solution to people's problems.

Sindh Minister Abdul Haseeb Khan also spoke on the occasion and said that the repair of water and sewerage lines, road and street lights should be done on preferential basis before Muharram-ulHaram.

The representatives of azadar organizations in the meeting pinpointed various problems regarding Muharram-ulHaram. It was decided at the meeting to solve all of them without delay.

Police detaining of Secy Sindh

One suspended, two transferred KARACHI: A police constable was suspended and two others including SSP and SHO transferred for strictly observing laws of the land.

According to details police stopped the Special Secretary Nazar Mohammed Bazdar while he reached the check-post to make entry into Red Zone area in Karachi with artillery, arms-laden private car.

The police claimed that Bazdar was drunk and behaved like an abnormal person after which they handcuffed him and later shifted him behind bars for a night.

"His mouth stunk horribly with alcohol smell and he insisted to take his car, carrying weapons, in the Red Zone area which is closed down for traffic after 1:00AM," officials claimed.

According to a private TV channel, medical reports also confirmed the police claim that Bazdar was drunk

though he himself and officials have denied the allegations.

Advisor to CM Sindh, Sharmila Farooqi when approached by media persons said that police manhandled and misbehaved with Special Secretary and kept him in detention for a night.

She said that an investigation team has been formed which will present a report to the Chief Minister about the incident.

However, she did not respond when asked how the police officials could be suspended as the investigation committee has yet to compile a report and has not reached a decision so far.

It seems that police officials were suspended and transferred for making the bureaucrats to obey law.

Chief Minister Sindh has been annoyed with policemen over stopping vehicle of Bazdar, police said. -NNI

Ebad to open forum ISLAMABAD: Sindh Governor Dr Ishrat-ul-Ebad will inaugurate 38th India, South Asia, Africa and Middle East Forum Pakistan on December 2nd at a local hotel at Dubai.

ISAAME Forum is being organized by Lions Clubs International from December 2 to 5, 2010 in Dubai. Sindh Minister for Tourism Shazia Marri will be key note speaker on Dec 4th 2010 and prominent business leader SM Muneer President International Lion Club, Chairman organizing committee Malik Khuda Bukhsh & well renowned social & business leaders will address on the occasion.

Chairman organizing committee ISAAME Forum Pakistan, Malik Khuda Buksh said that it was a challenge to hold this event. He said ISAAME Forum will improve the image of Pakistan. We have to prove to the world that Pakistan is a peaceful and not a terrorist country as occasionally labeled by the western media, he added. -PPI

Chhipa urges to serve needy KARACHI: The philosophy behind provision of two time meal to the deserving people was initiated with a concept of offering assistance to them regarding saving their money they used to spend on their dining needs.

The money they save thus has helped them spend more on better feeding and education of their kith and kin, Chairman Chhipa Welfare Association, Ramzan Chhipa said this on Sunday while listening to those who received free food at "Chhipa's free food service" in the city.

He served food among the needy and declared that they were heaven's guest.

However, he urged "philanthropists," the rich and people that they should join "CWA" in their efforts for reducing financial burden of the poor and low income people.

He extended his gratitude to those who have been supporting CWA regarding their needs for food, medicines, ration and commodities for their better living. -PPI

KARACHI: A group photograph of Mohammad Khalid Abdul Razak, CG of Malaysia, Shazia Marri Minister for Tourism, Christian Ramage CG of France, Fassa Lis R Adenan CG of Indonesia, Zulfiqar Ahmed Malik, GM PC Hotel and other during inaugural ceremony of “MELAKA FOOD & CULRUTAL WEEK� at local hotel. -Staff Photo

PPP 44th Foundation Day

Sharmila eulogises Bhuttos' sacrifices Staff Reporter KARACHI: Advisor to Sindh Chief Minister for Information & Archives Ms Sharmila Farooqi paid glowing homage to Shaheed Zulfiqar Ali Bhutto on the eve of PPP's 44th Foundation Day as saying ZA Bhutto strengthened federation, democracy in real manner and peace in the country by sacrificing his life and made his party energetic and energetic.

Shaheed Zulfikar Ali Bhutto made hectic struggle to develop provinces and boost harmony among them.

"Bhutto served the downtrodden people and brightened the name of the country and the nation at international level.

He also enhanced spirit of fraternity among the people belonging to all walks of life, she said while talking to a delegation here on Sunday.

Sharmila said Shaheed Benazir Bhutto also sacrificed her life for people, party and country and set an exemplary example of sacrifices, while President Asif Ali Zardari is also making efforts to boost the party and implement the policies of Shaheed Zulfiqar Ali Bhutto and Shaheed Benazir Bhutto for the welfare of the country and the nation.

Shaheed Zulfiqar Ali Bhutto laid the foundation of nuclear program in

Pakistan and provided vital projects of national development including the Pakistan Steel Mills which brought huge development and prosperity in the country.

Sharmila said that there is need to follow the policies initiated by Shaheed Zulfiqar Ali Bhutto for the country progress and safety while President Asif Ali Zardari is doing good in this regard.

Sharmila said ZA Bhutto fought with anti-democracy forces and sacrificed his life for the achievement of rights of people. Bhutto was the man who never bowed down before dictators who eliminated him physically from us but could not take him out of hearts and minds of people. He was the voice of downtrodden people and shelter for people". The anti-democracy and dictatorial forces have also set machinery against President Asif Ali Zardari in a bid to destabilize his government but PPP workers and parliamentarians are determined to foil all nefarious designs of these forces. The PPP is the party of masses and came to power with their support, so evil forces would soon fail in gaining their nefarious design. She said, the President is following lesson given by Shaheed Zulfikar Ali Bhutto and Shaheed Benazir Bhutto for progress of people in true manner besides implementing PPP manifesto

HM to set up body to heed complaints

in letter and spirits. "His reconciliation policies are widely hailed under which he has taken all political parties on board for welfare of the country and nation".

The advisor said as a number of Pakistan's delegation to the United Nation in 1957at the age of 29 years, Zulfikar Ali Bhutto addressed the Sixth Conferences of the United Nations on "The Definitions of Aggression", a speech which is still regarded as one of the best on the object. As a participant at the International Conference in Geneva, Switzerland in March, 1958 Zulfikar Ali Bhutto spoke for mankind with the bold declaration: "The High Seas are free to all."

Sharmila said Zulfiqar Ali Bhutto was the youngest Federal Cabinet member in the history of Pakistan, at the age of 30, adding he held the key portfolios of Minister of Commerce, Minister of Information, Minister of national Reconstruction and Minister of Fuel Power and Natural resources before becoming the Foreign Minister. As Minister of Fuel Power and Natural resources, he signed a path breaking agreement for exploration of Oil and Gas with Russia in 1960. He sat up a Gas and Mineral Development Corporation in 1961 and Pakistan's first refinery in 1962 at Karachi."

Abida Parveen hospitalised after stroke

facilitate Community Policing.

"The objective of the proposal is the reduction and prevention of crime through government, proactive initiatives of other similar organizations, police, business sector and all members of the community making the province a crime free zone", the Consultant maintained.

The report revealed that the proposed citizens Oversight Committee would work under the patronage of Chief Minister Sindh in order to focus, unite, support, provide and regain citizens' rights against all criminal elements. The report disclosed that a UAN is also being installed at the Home Minister's compliant center in order to provide easy excess to general public to lodge their complains against police, human rights violation etc. -Agencies

LAHORE: Renowned singer Abida Parveen suffered heart attack here early on Sunday morning and was rushed to hospital for medical aid.

Senior Dr Zulfiqar at the Doctors Hospital, where Abida Parveen was taken said her angiography was carried out and necessary treatment was provided immediately. He said Abida Parveen is out of danger but would be kept under observation in the ICU for the next 24 or 48 hours depending on her condition.

Abida Parveen, born in 1954 is a singer of Sindhi descent and one of the foremost exponents of Sufi music (Sufiana kalaam). She sings mainly Ghazals, Urdu love songs, and her forte, Kafis, a solo genre accompanied by percussion and harmonium, using a repertoire of songs by Sufi poets. -Agencies

SHCBA polls held

Marriot cultural show from 29

and Saify Ali Khan for honorary joint secretary.

Voting started in morning continued till scheduled time without any disruption.

Amon the candidates for the post of member managing committee were Abida Parveen Channar, Ahmed Khan Bugti, Ameeruddin Meo, Azizuddin Qureshi, Fareed Ahmed A. Dayo, Habib Ahmad, Javed Hasan Malik, Khalid Mahmood Dhoon, Manzoor Ahmed, Masood Ahmed Siddiqui, Muhammad Arshad Khan Jadoon, Muhammad Hasan Akber, Muhammed Mushaffy Ahmed, Muhammad Safdar, Naseem Javed, Perveen Pervaiz, Razia Sultana, Saeeda Siddiqui, Sajjad A. Khan, Shaukat Ali Shaikh and Tariq Mahmood Khawaja. -NNI

KARACHI: The Karachi Marriott is bringing a fabulous Thai Food and cultural show to promote hotels, General Manager Marriott (Karachi), Faisal Khan said.

He said this while addressing a press conference. He said there is a dire need to promote hotels and encourage people to come in, as because of the entire country's situation, the hotel industry is running in depressing mode.

He said the Thai Chef, Bee, the recipient of "Best Chef of the Year 2010" award, will be cooking, scrumptious Thai cuisines for the guests. An extensive menu has been prepared by Bee to make sure guests have the most delicious food during the festival. Bee is famous for cooking food with utter carefulness and personal supervision. -PPI

KARACHI: The Home Department, Government of Sindh has proposed establishment of Citizens Oversight Committee to look after the affairs of "Complaint Center" at Home Minister's Sindh Office.

The establishment of Oversight Committee has been suggested by Consultant on Home Affairs, Sharfuddin Memon aimed at bringing together agencies and individuals, citizens committed strive for justice and law enforcement to establish and improve oversight of law and order enforcement in the province.

The consultant focusing on concept of Community Policing in the entire province Sindh said that establishment of an Oversight Committee would not help streamline the functioning of complaint center but also

KARACHI: The annual election of Sindh High Court Bar Association for election of its president, vice president, honorary secretary, honorary treasurer and honorary joint secretary was held on Saturday at SHCBA. Around 1400 out of total 1815 enrolled voters stood eligible to cast their votes. Anwar Mansoor Khan and Ghulam Qadir Jatoi were candidates for post of president, while Abdul Jabbar Qureshi, Adnan Ahmed, Ashiq Ali Anwar Rana, S M Gharib Nawaz Daccawal and Yousuf Maulvi for the post of vice president.

Abid S Zuberi and Nadeem Qureshi were in run for honorary secretary, Akhlaq Ahmed Khan, Azra Saeed and Yousuf Iqbal for the post of honorary treasurer, Amir Aziz Khan, Mirza Sarfraz Ahmed

3 Monday, November 29, 2010

US dollar weekly outlook

Euro to fall on contagion fears; US jobs data eyed US nonfarm payrolls report also in focus Euro/dollar may decline towards $1.25 by year-end Eurozone debt crisis, Korean conflict to lift US dollar NEW YORK: The euro should extend losses against the dollar in the near term after its worst week in over three months on fears Portugal and Spain will be next to need bailouts after Ireland.

Technical charts and option trading also suggest increasing bearishness on the euro.

The euro slid to a two-month low at $1.32 on Friday and was down 3.5 per cent last week, on pace for its biggest weekly percentage drop since mid-August.

Concerns over a deepening debt crisis in the euro-zone and escalating tensions in the Korean peninsula could lift the safe-haven US dollar.

The greenback could get an added boost if a key US jobs report this Friday beats expectations.

"The bigger question is will Spain and Portugal remain immune and I would look and say, 'no'," said Greg Salvaggio, vice president of trading at Tempus Consulting in Washington.

"The situation in the eurozone will continue to deteriorate," he said, adding the euro could drop "below $1.30 and perhaps as low as $1.25 by year-end."

The premium investors demand to hold Irish and Spanish government bonds rather than German benchmark Bunds hit new euro lifetime highs on Friday.

Portuguese bonds also underperformed after a report said the majority of euro-zone

states and the European Central Bank were urging Portugal to apply for a bailout.

European officials said reports Portugal was under pressure to seek a bailout were "absolutely false".

Spain on Friday ruled out that it needs help to manage its finances.

Nomura currency strategists Jens Nordvig and Charles St-Arnaud said the outlook on Spain, which accounts for 11.8 per cent of euro-zone economy, will be a primary driver of the euro in the coming weeks.

"In a scenario where Spanish spreads widen to Portugal's current levels, we see the risk premium on the euro increasing from around 10 per cent to above 20 per cent, and this could see the euro trade all the way to 1.23 against the US dollar," they wrote to clients. "The big question is whether this is the central case."

BEARISH ON EURO, KOREAN CONFLICT On Friday, the euro last traded at $1.3239, down 0.9 per cent on the day, after falling as low as $1.3200 on trading platform EBS. The euro hit a four-year low of $1.1876 in June in the wake of the Greek debt crisis.

Bearish momentum in the euro will likely continue after the currency breached several key support levels last week, including its August high at $1.3334 and the 61.8 per cent retracement

of its August to November rise at $1.3232.

Next support comes in around the 200-day moving average at $1.3131, followed by $1.3080, the 50 per cent retracement of the euro's June to November rally.

Ashraf Laidi, chief market strategist at CMC Markets in London, said a close below the important $1.3250/60 trendline support could see the euro/dollar slide towards $1.27.

In the options market, risk reversals have showed increasingly bearish sentiment on the euro, while analysts at Credit Suisse noted "significant buying of bearish euro structures against the dollar, yen and the Swiss franc."

On Friday, one-month euro/dollar risk reversals traded at -2.3, with a bias toward euro puts, suggesting more investors are betting the euro will fall than rise.

That was down from -1.6 on Monday. In mid-October, euro/dollar risk reversals traded near neutral levels at 0.55.

Investors will also closely watch developments in the Korean peninsula, which will likely benefit the dollar as safe-haven demand rises.

Analysts said the dollar should also benefit if US housing and jobs data this week comes in stronger than expected, which would reinforce expectations the US economy is outperforming that of Europe. -Reuters

Sterling falls against USD for 3rd week LONDON: The pound dropped to the weakest in two months against the dollar as tensions between North and South Korea escalated, driving investors away from assets perceived to carry greater risks.

The Financial Times Deutschland said euro-area policy makers are pushing Portugal to seek aid for its economy. North Korea's staterun news agency said planned naval exercises by South Korea and the US moved the peninsula "closer to the brink of war."

The pound fell 1 per cent to $1.5597 at 4:33 p.m. in London, after dropping to $1.5590, the weakest since September 21. It was little changed against the euro at 84.78 pence, after earlier appreciating 0.7 per cent to 84.21 pence.

The pound declined against the dollar for a third week, falling 2.4 per cent. It appreciated 0.9 per cent for the week versus the euro.

European finance ministers plan to complete an agreement for an international aid package for Ireland on Nov. 28, a European Union official said on condition of anonymity.

"Reports that they're trying to accelerate the process in Ireland could be seen on the cross as a sterling positive, so euro-sterling may keep the pressure on the downside as efforts appear to be stepping up in Ireland," said Stannard.

Britain's Treasury sold 3 billion pounds ($4.7 billion) of 30, 91 and 183-day gilt bills today, according to the UK Debt Management Office.

Sterling has weakened 3.9 per cent against a basket of its developed-country peers this year, according to Bloomberg C o r r e l a t i o n - We i g h t e d Currency Indexes, making it the third- worst-performing currency after the euro and Norwegian krone. It has appreciated 0.9 per cent in the past month. -Agencies

US soy hit by Sugar gains, coffee loses Copper falls on USD, China firmer dollar, amid eurozone crisis demand Chinese sales NEW YORK/LONDON: ICE Liffe March white sugar finCHICAGO: US soybean futures fell 1.3 per cent on Friday, snapping a three-day rally under pressure from a firmer dollar and news that China will sell soybeans from its reserves for the first time this season.

Despite the day's slide in soybeans, all three markets locked in gains for the week after falling in the previous two weeks, as profit-taking and worries that anti-inflation efforts in China would hurt demand gave way to bargainhunting by commercial firms.

At the Chicago Board of Trade, January soybeans settled down 16-1/2 cents at $12.38-1/2 a bushel. Soy volume was a third of the 30-day average, and off about 10 per cent from the Friday after Thanksgiving last year.

December wheat ended up 3/4 cent at $6.48-1/4 a bushel, and December corn ended down 1/2 cent at $5.38-1/4. Corn volume totaled less than half its 30-day average and fell 43 per cent from a year ago.-Reuters

sugar futures reversed early losses to settle higher for the fourth straight day on Friday due to fund buying, while coffee fell as Europe's debt crisis pushed the euro to a two-month low against the dollar and as investors worried about conflict in Korea.

Cocoa futures settled stronger as the London market led the way up, ahead of the second round of presidential elections in top grower Ivory Coast.

Volume was thin after the US Thanksgiving holiday on Thursday and the ICE agricultural markets dealt in a slightly abbreviated session.

ICE raw sugar futures found strength in follow-through buying from Wednesday as demand continued to be viewed as strong, particularly in China, dealers said.

ICE March raw sugar rose 0.30 cent or 1.1 per cent to end at 28.25 cents per lb, closing the week up 8 per cent. Volume was light at around 36,305 lots, down nearly half from the Friday after Thanksgiving in 2009, preliminary Thomson Reuters data showed.

ished up $1.10 at $718.40 per tonne.

Dealers said the market faced stiff resistance above 30 cents a lb, having touched a 30-year high of 33.39 cents a lb on Nov. 11, underpinned by low global stock levels. Coffee futures settled lower along with the commodity complex, with investors still concerned about contagion stemming from the euro-zone's debt problems.

ICE March arabica coffee futures dropped 4.75 cents or 2.3 per cent to finish at $2.0270 per lb, closing the week down 4 per cent, the biggest weekly loss since Aug. 8.

Robusta coffee futures eased, with the harvest in top producer Vietnam expected to gather pace over the next few days.

Liffe January robusta coffee futures slipped $13 to settle at $1,816 per tonne.

Cocoa futures settled higher.

Liffe March cocoa settled up 27 pounds at 1,874 pounds.

ICE benchmark March futures crept up $1 to settle at $2,794 per tonne, finishing the week down 2.6 per cent.-Reuters

US cotton sheds 4pc, ends week 9pc lower NEW YORK: US cotton futures finished down 4 per cent on Friday, falling by their daily limit intraday and bouncing like a yo-yo in sideways dealings after dropping more than 25 per cent from a record high hit two weeks ago.

The benchmark contract closed the week down 9.2 per cent, the biggest weekly loss for the second-position contract since February 2009.

March cotton futures made the biggest losses for the day on the 19-commodity Reuters-Jefferies CRB index, just one session after being the biggest gainers.

They were the biggest losers on the index the day before that.

Volume was thin, however, in

a slightly abbreviated session following the US Thanksgiving holiday on Thursday.

The benchmark March cotton contract on ICE Futures US closed down 4.83 cents, or 4.1 per cent, at $1.1176 per lb, slightly paring losses after falling by the daily limit of 5 cents to a session low at $1.1159.

The volatile market is down 26 per cent from its record high at $1.5195 reached on Nov. 10, on heavy buying by Chinese mills and investors.

Prices were weighed down in thin dealings by negative sentiment in the broad marketplace, pressured by a drop in the euro to a two-month low against a resurgent dollar. Speculation mounted

that Portugal would need to follow Ireland in seeking financial aid, further unsettling investors.

"For today the weakness is a light day. It's Friday after Thanksgiving. I think some of the mills have backed off," said Bill Raffety, senior analyst for futures brokerage Penson.

The CRB was down about 0.4 per cent for most of the session.

Total volume was light at around 15,760 lots, up slightly from the 13,520 lots dealt on the Friday after Thanksgiving in 2009, Thomson Reuters preliminary data showed. The May cotton contract at China's Zhengzhou Commodity Exchange last traded down 1,115 yuan at 24,470 yuan per tonne. -Reuters

worry

NEW YORK/LONDON: Copper fell amid thin trading on Friday as the euro-zone debt crisis boosted the dollar and fear of interest rate hikes in China stoked worries about demand from the world's top metals buyer.

Three-month copper on the London Metal Exchange closed at $8,239 a tonne, versus Thursday's finish of $8,340, and ran into its third consecutive weekly loss.

In New York, December copper, the most active futures contract for the base metal on the COMEX division of the New York Mercantile Exchange, settled down 0.45 cent at $3.7510 per lb.

Volume was light, particularly in New York futures, as US markets observed abbreviated trading sessions for the "Black Friday" that followed Thursday's Thanksgiving holiday.

At midsession, COMEX copper did just around 37,000 lots versus Wednesday's tally of above 59,000. On Black Friday, 2009, volumes were around 44,000 lots.

"The Chinese look likely to raise rates again this year," said John Meyer, analyst at Londonbased investment bank Fairfax.

"The Chinese have slowed their buying (and) any slowing of Chinese activity pulls prices down."

Among other base metals, aluminium closed at $2,270 a tonne against Thursday's close of $2,281.

Zinc fell as much as 4.6 per cent to a session low of $2,098 a tonne, later closing at $2,105 a tonne, versus Thursday's close of $2,200 a tonne. The global zinc market was in surplus by 175,000 tonnes in the first nine months of the year, a bulletin from International Lead and Zinc Study Group showed.

Battery material lead closed at $2,275 a tonne versus a close of $2,331 a tonne.

Tin closed at $24,100 a tonne versus $24,300 while nickel was at $22,550 a tonne from $22,800.

-Reuters

Asian currencies

Most log weekly losses on Korea attack, EU woes SINGAPORE: Asian currencies had their biggest weekly loss in six months as an exchange of artillery fire on the Korean peninsula deterred investment in the region and Europe's debt crisis bolstered demand for dollars.

"Asian currencies have suffered from the contagion effect from Europe," said Dariusz Kowalczyk, senior economist at Credit Agricole CIB in Hong Kong. "We also had an escalation of tensions from North and South Korea."

The won fell 2.2 per cent last week to 1,159.63 per dollar in Seoul, its biggest loss in five months. Singapore's dollar dropped 1.9 per cent to S$1.3208, the steepest slide since February 2009, and Malaysia's ringgit retreated 1.5 per cent to 3.1630.

The won slumped 1.9 per

cent after North Korea, via its KCNA state news agency, said "escalated confrontation would lead to a war." The USS George Washington aircraft carrier will tomorrow begin exercises off the Korean peninsula with naval vessels from the South in a show of force that the North warned will take the countries "closer to the brink of war."

"This is really a big risk for the whole region, leading to a massive sell-off of the won," said Minoru Shioiri, chief manager of currency trading in Tokyo at Mitsubishi UFJ Morgan Stanley Securities Co. "People don't want to hold the won and other regional currencies over the weekend when we don't know what will happen."

The ringgit had its biggest weekly slide in six months as a central bank report showed the

economy slowed more than economists forecast in the third quarter. Gross domestic product rose 5.3 per cent from a year earlier, less than the 8.9 per cent gain in the previous three months and the median 5.9 per cent increase forecast in a survey of economists.

The Philippine peso fell 0.9 per cent to 44.195 per dollar, a third weekly decline, as a Nov. 25 report showed GDP unexpectedly dropped 0.5 per cent in the third quarter from the previous three months.

China's yuan declined 0.42 per cent last week to 6.6675 per dollar, its biggest loss since December 2008.

Taiwan's dollar fell 0.5 per cent last week to NT$30.83, while Indonesia's rupiah retreated 0.8 per cent to 9,013.

Thailand's baht fell 0.8 per cent to 30.20. -Agencies

Canada dollar drops by a penny on eurozone woes TORONTO: The Canadian dollar skidded a full US cent against the greenback on Friday as investors flocked to the US currency on worries about the debt woes of peripheral eurozone countries.

Worry about indebted European nations intensified as newspaper reports shifted attention from Irish debt to Spain and Portugal, prompting denials from the euro-zone governments that they might require bailouts.

As well, China warned against military acts near its coastline ahead of US-South Korean naval exercises that North Korea said risked pushing the region towards war. The North shelled a South Korean island earlier this week.

"The Canadian dollar is suf-

fering basically as a consequence of European fiscal problems and Korean peninsula conflict," said Eric Lascelles, chief Canada macro strategist at TD Securities.

"The risk aversion story is blooming again and the US dollar is once again the darling in the eyes of the market and that has left the Canadian dollar a little bit less glamorous."

The Canadian currency touched a low of C$1.0247 to the US dollar, or 97.59 US cents. It ended the session at C$1.0200 to the US dollar, or 98.04 US cents, down sharply from Thursday's close at C$1.0097 to the US dollar, or 99.04 US cents.

The Canadian currency also fell for the third consecutive week, dropping 0.2 per cent.

Key Canadian data due out next week includes growth data for September and the third quarter, as well as November employment data. The question on investors' minds will be whether global or domestic factors dominate.

Firas Askari, head of foreign exchange trading at BMO Capital Markets, said employment data will be key ahead of the Bank of Canada's Dec. 7 interest rate announcement.

"I'm thinking it could be a pretty strong number which could really put the Bank of Canada in a bit of a bind," said Askari.

"We're seeing some strong signs of the Canadian economy starting to stabilize and they are definitely going to be on guard for any signs of heating up," he said.-Reuters

US oil dips on euro woes amidst sparser turnover NEW YORK: US oil prices edged lower in light post-holiday trading on Friday, pressured as Europe's debt crisis pushed the euro to a two-month low against the dollar but with pipeline and refinery snags and geopolitical tensions helping limit oil's losses.

Oil prices seesawed as US crude trading volume totaled only 243,802 lots, well below the 465,481 lots traded on the 2009 post-Thanksgiving Friday and 62 per cent below the 30-day average.

"It was a relatively strong performance for crude given the rally in the dollar and the slip in the S&P. A bullish market sentiment has investors focusing on bullish news and ignoring bearish news," said Tim Evans, energy analyst at Citi Futures Perspective in New York.

US crude oil for January delivery fell 10 cents to settle at $83.76 a barrel, well above its $82.78 low. Front-month crude futures ended $2.25, or 2.76 per cent, higher on the week, snapping a string of two weekly losses.

The front-month crude price has not dropped below $80 since Oct. 20 and has seesawed after reaching a 25-month peak at $88.63 on Nov. 11. In London, ICE January Brent crude fell 52 cents to settle at $85.58 a barrel.

As the euro was kept under pressure and the dollar strengthened amid the euro-zone debt crisis, European officials denied reports on Friday that Portugal faced pressure to seek a bailout and Spain ruled out needing help to manage its finances.

"We viewed the ability of the crude market to maintain

Wednesday's strong 3 per cent price gains as impressive given today's two-month lows in the euro and the significant weakness in today's equity markets," Jim Ritterbusch, president at Ritterbusch & Associates in Galena, Illinois, said in a note.

Helping limit oil losses on Friday was news a power outage forced Enbridge Inc to cut flows on its 670,000 barrel-a-day, Line 6A, Canada-to-US crude oil pipeline by about a third, according to market sources.

US gasoline futures ended lower, but also seesawed and posted intraday gains amid refinery snag news as Tuesday's December refined products contract expirations approached.

Brokers and traders also pointed to geopolitical concerns limiting oil losses.-Reuters

Gold down in thin trade; poised for more drops NEW YORK/LONDON: Gold fell 1 per cent on Friday on thin participation from US investors after Thursday's Thanksgiving holiday and twomonth highs in the dollar, which weighed on the yellow metal's position as a currency alternative.

Gold bullion fetched bids at just over $1,363 an ounce late afternoon in New York, versus Thursday's closing bid of $1,374.12. The intraday low of $1,350.10 held above the key support of $1,350.

Gold futures' most-active contract in New York, December, settled down $10.60 at $1,362.40 an ounce.

Other precious metals fell too. Silver was down almost 3 per cent, palladium 2 per cent and platinum about 1 per cent.

"Gold's come off because the dollar's strengthened," said David Thurtell, analyst at

Citigroup. "If a rescue is done for Ireland, I would think gold will lose some of its bid tone and sell off next week."

Technical charts and contract options studied by Reuters on Friday showed the euro should extend losses against the dollar in the near term after its worst week in over three months on fears Portugal and Spain will be next to need bailouts after Ireland.

In euro terms, bullion prices had eased to below 1,025 euros an ounce compared with 1,028.76 euros late on Thursday. But it was still firmly above the 1,000 euros mark it fell through on Monday for the first time in a week.

Volume in gold thin futures was particularly thin as US markets observed their traditional abbreviated session on the Friday after Thanksgiving, which is popularly known as "Black Friday."

By midday in New York, volume in gold futures stood at a paltry 221,000 lots -- just about half of the level seen the day after the 2009 Thanksgiving.

"Gold is ... not really marching to any drum at the moment," said Simon Weeks, trader at London's Scotiamocatta.

"I think it's just drifting in thin quiet Friday conditions as the currency markets move," he said, adding that bullion could head lower to between a $1,345 and $1,350 next week.

Besides being a currency alternative, gold also acts as a safe haven in times of political troubles.

But despite the geopolitical tensions after this week's artillery exchange between North and South Korea, gold has not rallied. Analysts said this may have to do largely with the dollar's strength, which is undermining gold. -Reuters

4 Saturday, November 27, 2010

Cyber Terrorism Has a Deadly Bug

The Financial Daily International Vol 4, Issue 112

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

S. Muneer Hussain Rizvi

Asim Abbas Ashary, CPA

Khurram Shehzad, CFA

Akhtar M. Zaidi, FCA

Prof. Zakaria Sajid (KU)

Dr. A. Hadi Shahid, FCA

Zahid Bukhari SVP HBL (retd)

Muhammad Arif

Ismat Sabir Head office

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

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

An MPS of no consequence The State Bank of Pakistan is scheduled to issue Monetary Policy Statement today. In the worst scenario a 100bps increase in discount rate is expected but 50bps is most likely. The whiz kids, who believe tight monetary policy is a must for containing inflation, will prevail over those who consider high interest rate most detrimental for fresh investment. Yet another rationalisation that high interest rate can help in containing government borrowing sounds most absurd.

While rising global prices of commodities, particularly of that of crude oil, are going to be a major determinant of the overall inflationary trend. Moreover, RGST, if implemented will add more legs to the inflationary uprun. Apart from this, the continued increase in power tariff in order to tackle circular debt is also expected to play its role in worsening the situation.

Disappointedly, the policy planners do not accept the harsh reality that Pakistan suffers from cost-pushed inflation. The persistent hike in electricity/ gas tariffs and POL products is one of the major reasons for the same. Hike in tariffs in the name of full recovery of cost, without making any effort to contain T&D and UFG losses is meaningless.

There can't be two opinions that the prime reason of high government borrowing is due to extravaganzas. It seems that the present regime is on the honeymoon and wishes to enjoy as much as possible. It is also evident that instead of opting for austerity drive they are begging for more and more without realising that debt servicing has already become unsustainable.

With rulers not willing to curtail expenses, hoping that hike in interest rate will contain government borrowing is absolute trash.

In the absence of any meaningful foreign inflows, the government has to rely on domestic sources to fill in the funding gap. Federal government borrowing from the central bank in first week of November was Rs200 billion.

Excessive government borrowing that too at a fabulous rate is most beneficial for the commercial banks. They are able to earn huge risk free return out of which a paltry payment is made to depositors.

It is on record that banking spreads in Pakistan hover around 7.5 per cent. In the prevailing scenario banks are least interested in deposit mobilisation as well as lending to the private sector.

The inter-bank market is likely to remain liquid in the short-term with slight upward adjustment in rates. However, it will be interesting to see the movement in yields when the government looks to borrow in the long-term through Pakistan Investment Bonds and the subsequent impact on rates of return for National Savings Schemes.

Let’s see what happens.

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.

A

l Qaeda scares airlines with parcel bombs worth $4,000. War with the Taliban costs the West billions of dollars a week. North Korea shells disputed land, winning instant fresh attention in a standoff with major powers.

Weaker combatants have always used unconventional or inexpensive means to defy stronger foes, including guerrilla warfare and suicide attacks that depend on a greater willingness to sacrifice life.

This approach can be decisive. Of all "asymmetric" wars since 1800 in which one side had far more armed power than the other, the weaker side won in 28 per cent of cases, according to a 2001 study by US political scientist Ivan Arreguin-Toft.

The ratio may now be set to shift further in favour of the underdog.

The revelation this year of a novel way to use computers to sabotage an enemy's lifeline infrastructure suggests a powerful new kind of weapon is moving within reach of weak states, militant groups and criminals, some analysts say.

That weapon is likely to be a variant of Stuxnet, a highly destructive Internet worm discovered by a Belarus company in June and described by European security company Kaspersky Labs as "a fearsome prototype of a cyberweapon", analysts say.

"A GREAT DANGER" "Stuxnet is like the arrival of an F-35 fighter jet on a World War I battlefield," blogged German industrial control systems expert Ralph Langner.

Whoever created the bug, believed by many to have targeted an Iranian uranium enrichment facility, the job likely required many manhours of work and millions of

dollars in investment.

But now that its code has been publicly analysed, hackers will need only a few months to develop a version of the customised malware for black market sale, some experts say.

Ali Jahangiri, an information security expert who tracks Trojan codes, harmful

“

measures plants across the globe.

"My greatest fear is that we are running out of time to learn our lessons," US information security expert Michael Assante told a Congressional hearing on Stuxnet this month.

"Stuxnet ... may very well serve as a blueprint for similar

possess and use such weapons soon," he said. If the next Stuxnet cost less than $1 million on the black market, then "some not-so-well equipped nation states and well-funded terrorists will grab their checkbooks."

As well as favouring small states, cyber appears to be a tool of special value for Russia and China, since it allows them to become equals to the United States in a sphere where US conventional military dominance counts for nothing.

Stuxnet is a powerful example of the fastest-growing sort of computer bug -- customised malware written specifically to attack a precise target.

What is new is its power, and the publicity it has attracted through a presumed link to Iran.

That publicity will have drawn attention in small nations such as North Korea, which can be expected to take an interest in acquiring a Stuxnet-like capability to balance an inferiority in conventional arms with its US-backed southern foe.

Like some impoverished countries in Africa, North Korea has a cyber advantage -- it has so few systems dependent on digital networks that a big cyber attack on it would cause almost no damage, writes former U.S National Security Coordinator Richard Clarke in his book Cyber War. "A MATTER OF TIME"

Weaker combatants have always used unconventional or inexpensive means to defy stronger foes, including guerrilla warfare and suicide attacks that depend on a greater willingness to sacrifice life

pieces of software that look legitimate, describes that prospect as "a great danger."

"The professional Trojan codemakers have got the idea from Stuxnet that they could make something similar which can be used by governments, criminals or terrorists," he told Reuters.

Stuxnet's menace is that it reprogrammes a control system used in many industrial facilities to inflict physical damage.

At risk is automation equipment common to the networks on which modern societies depend -- power plants, refineries, chemical plants, pipelines and transport control systems.

Analysts say they suspect hackers are rushing to build a version of the worm and sell it to the highest bidder before experts can install counter-

but new attacks on control system technology," said Assante, President of the US National Board of Information Security Examiners, which sets standards for security professionals.

Langner says multinational

"Stuxnet ... may very well serve as a blueprint for similar but new attacks on control system technology," said Assante, President of the US National Board of Information Security Examiners, which sets standards for security professionals efforts against malware inspired by Stuxnet won't work since "treaties won't be countersigned by rogue nation states, terrorists, organised crime, and hackers."

"All of these will be able to

A state contemplating use of such a devastating weapon in a speculative attack could not guarantee it would not be found out, and might prudently restrict its use for all-out conflict.

However many terrorist groups, particularly those with a tradition of glorifying martyrdom, would have no concerns about launching cyber attacks.

"It can only be a matter of time before terrorists begin to use cyber space more systematically, not just as a tool for their own organisation, but as a method of attack," British Armed Forces Minister Nick Harvey said in a speech this month.

A report on cyber warfare by Britain's Chatham House think tank said there was no evidence to show terrorist groups had a cyber warfare capability but they were increasingly web-literate, using chat rooms to propagate their message and everyday items such as smartphones, online mapping and internet infrastructure as operational supports in attacks.

What is not in doubt is al Qaeda's willingness to use such a weapon to inflict economic damage on the West if it ever had the opportunity, experts say. Few doubt it would be able to get funds from rich donors to buy the malware on the black market.

Al Qaeda's Yemen wing said it cost just $4,200 to mail two parcel bombs from Yemen to America last month.

Intercepted in Britain and Dubai, the bombs sparked a global security alert.

"This strategy of attacking the enemy with smaller but more frequent operations is what some may refer to as the strategy of a thousand cuts," it said. "The aim is to bleed the enemy to death."-Reuters

A Tale of Two Lands C

ountry A is drowning.

A catastrophic recession has thrown a tenth of its workforce out of jobs in just two years. Firms are shutting, banks are barely solvent and the IMF has been called in to bail out the government from crushing debt. The standard of living is eroding, taxes are being hiked, state spending is being slashed, and the deeply unpopular government is being forced into an election it is certain to lose.

Country B has a huge and growing trade surplus. It is attracting a flood of international investment from global firms, building thriving hi-tech export industries.

Exports grew this year by 6 per cent and now amount to more than $50,000 per person. Taxes are low and staying low, and the Englishspeaking population is highly skilled.

Both countries are Ireland.

And therein lies a tale, or rather two tales: of a domestic economy that is in tatters, side by side with a global export economy in the rudest of health.

In some respects, the success of Ireland's export economy obscures just how thoroughly ruined its domestic economy has been by the bursting of its property bubble in 2008.

Whole industries have completely vanished in a matter of months. Since government revenue depends mainly on domestic economic activity, the sudden fall in output has blown apart what were once exemplary public finances.

Once again, the Irish are leaving an island that seems unable to support them, a particularly resonant omen in a country that had finally reversed centuries of emigration.

But while all that misery

has piled up, Ireland's "Celtic tiger" export economy has quietly continued purring.

TRANSFORMED The story has been often told of how Ireland was transformed in the 1990s from one of the poorest countries in Europe to one of the richest by attracting

are now funding Ireland's bailout and think it competes unfairly with their higher rates, but it remains popular in Ireland.

Ireland's main political parties are committed to keeping it, and even argue with each other over who will do a better job defending the low rate from outside

not caught up in the domestic financial system."

The IDA's O'Leary says foreign direct investment was responsible for 110 billion euros of Ireland's 159 billion in exports last year.

For the Irish, the biggest question is whether the foreign companies will be able to provide jobs. For now,

Both countries are Ireland. And therein lies a tale, or rather two tales: of a domestic economy that is in tatters, side by side with a global export economy in the rudest of health exporters, especially meddlers that want it hiked. they seem to be the only American firms who turned With growth slowing in source of them. it into their base for the United States and Brian Murphy, CEO of the European operations.

Europe, Barry O'Leary, head Irish branch of recruitment US firms have invested of Ireland's investment pro- firm Morgan McKinley, more in Ireland than in motion agency IDA, has his Ireland's biggest professionBrazil, China, al recruiter, says India and Russia job vacancies are In some respects, the combined, says now just half of success of Ireland's export J o a n n e what they were Richardson, CEO before the bust. economy obscures just how of the American Most of that loss Chamber of has been among thoroughly ruined its Commerce. firms serving the The clout of domestic economy has been domestic market, those businesses while demand for was on display on workers among by the bursting of its Thursday when multi-nationals property bubble in 2008 Finance Minister has held up much Brian Lenihan, better and is now fresh from announcing 15 eyes on attracting invest- growing. billion euros in spending ment from Asia. The IDA Multi-nationals made up cuts and domestic tax rises, has opened offices in just 40 per cent of the vacanaddressed the American Mumbai, Shanghai, cies on Morgan McKinley's Chamber of Commerce's Moscow and Sao Paolo, and books before the crisis but annual Thanksgiving lunch. is opening new ones in now make up nearly two In between the pork and Shenzen, Singapore and thirds, Murphy said. pheasant terrine and the Bangalore.

Employers are looking for roast turkey, he reassured a Foreign firms are not fright- computer programmers, ballroom full of US business ened off by the chaos in the experts in pharmaceuticals chiefs that Ireland's 12.5 per domestic economy, which and life sciences, accountcent corporate tax rate was does not really affect them ants, supply-chain managers untouchable. since they don't rely on and other skilled workers.

That tax rate, far lower Ireland's domestic demand With unemployment at 14 than in the other countries of for customers or on its finan- per cent instead of 4 per Western Europe, has been cial system for funding, he cent, there are a lot more Ireland's calling card in said. applicants for those vacancompeting for international "Ireland has such a strong cies, which is only good investment. It infuriates track record of companies news for foreign firms who European neighbours that operating here and they are will now find Irish workers

"more competitive in the wage space", Murphy said.

Richardson rattles off the names of US firms that have announced plans to hire in Ireland in recent months: Ebay, IBM, Google, GE Healthcare, Covidien.

Facebook opened its office last year, hiring 200 people.

Video game company Activision Blizzard hired 800.

Intel, whose $7 billion, 360 acre "centre of manufacturing excellence in Europe" in county Kildare is perhaps the grandest monument to Ireland's exportdriven boom, is looking for a Senior Silicon Validation Engineer and a Thin Films Deposition Engineer, among other vacancies.

That may be cold comfort for Irish bricklayers, plasterers, estate agents, carpenters and property lawyers who have been cast out of work in their thousands.

When and if the wider economy picks up, it remains to be seen how many of them will still be around. Last year saw the first net migration out of Ireland since the boom years, when Ireland attracted tens of thousands of foreign workers a year.

Bobby Stewart, 32, a fund valuer who lost his job four months ago, went down to the welfare office this week to take his name off the unemployment rolls after finally finding a new job with a pay cut of around 20 per cent.

"If I hadn't got a job by Christmas, I would have moved to London. This was last ditch," he said. One of his close friends, a carpenter, had recently left for Australia.

"It's not just a case of waiting around. It's a case of maybe there won't be anything."-Reuters

5

Monday, November 29, 2010

Dubai may consider selling parts of major companies

GM IPO now world's biggest; sign of healthy demand for automaker Weekly Review

KSE wins weeklong bull-bear tug-of-war

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

10,966.00 11,145.02 179.02 1.63 592.74

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

3,433.71 3,473.52 39.81 1.16 33.37

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

2,794.97 2,854.89 59.92 2.14 0.87

Major Gainers

Symbol

Nawaz Ali

Close

Change

NESTLE 1,994.97 ULEVER 4,133.00 ILTM 114.84 WYETH 870.00 SRVI 229.59

63.38 56.67 20.34 20.00 18.50

Major Losers

Symbol RMPL UPFL BATA PSEL DREL

Close

Change

1,850.60 1,035.50 600.35 163.67 639.99

-66.62 -51.50 -23.07 -8.46 -8.01

Top 5 Volume Leaders

Symbol

Close Vol (mn)

JSCL LOTPTA NML ANL NBP

12.93 11.89 57.47 11.14 65.62

54.72 52.63 38.67 24.25 19.06

Active Issues Plus Minus Unchanged

245 164 17

Sector Updates FERTILISER 000 tonnes

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

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

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

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

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

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

186 70 0 18

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

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

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

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

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

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

MADRID: People watch an electronic board displaying figures of Madrid's Stock Exchange.-Reuters

Wall Street weekly outlook

Big holiday spending, jobs could help Wall St NEW YORK: There is no sign that investors' headaches from Europe are going away, but early indications of strong holiday spending and an improving labor market could soothe Wall Street this week.

Fears that Europe's debt crisis could spiral out of control have pushed stocks off two-year highs hit earlier this month. Since Nov. 5, the S&P has fallen 3.1 per cent after running up 17 per cent over the two months before that.

At Friday's close, the S&P 500 was down 0.9 per cent for the week, almost matching the Dow's 1 per cent drop.

However, those fears have been countered by signs of a gathering recovery in the labor market at home. The government's nonfarm payrolls report on Friday is set to be another sign of a turnaround in hiring that could boost stocks through the end of the year.

Anecdotal evidence suggests holiday shopping got off to a good start. The S&P retail index rose more than 5 per cent in the run up to "Black Friday," the day after Thanksgiving, when Americans traditionally take shopping malls by storm.

Retail stocks' gains are a sign of an increasingly bullish view of the US consumer after a string of stronger indicators on jobs, sentiment and spending.

"The consumer is more confident and they are spending a bit more money, and I think retail as a whole is perking up," said Gary Bradshaw, portfolio manager at Hodges Capital Management in Dallas, adding that retail stocks "look relatively cheap to us, and I think sales are going to surprise to the upside."

Friday's payrolls report is expected to show the economy added 140,000 jobs in November, according to economists polled by Reuters. If that forecast is met, the jobs data will fit a pattern of growing strength in the labor market.

In October, companies hired at their fastest pace since April, the government's payrolls data showed, while the latest weekly initial claims for unemployment benefits have dropped to their lowest in over two years.

November consumer sentiment rose to the highest level since June. October consumer spending also gained.

Early anecdotal evidence from Black Friday suggested shoppers were spending and that discounts were not as deep this year as last, potentially helping to lift retailers' margins as they look for the best holiday season in three years.

Black Friday marks the start of the holiday spending when US retailers traditionally turn a profit, or go into the black for the year. The National Retail Federation said that nearly 60 million Americans plan to hit the stores over the weekend, while another 78 million might join the crowds of shoppers. The NRF will provide an update on Sunday.

Retailers on the front lines will publish same-store sales data on Thursday when they will likely comment on the weekend's events. "It seems the American consumer is back with a vengeance," said Kim Caughey Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh. "If we are to believe CEOs of retailers, they feel they can support margins with prices that are attracting consumers."

Shares of Amazon.com, a favorite online retailer, have run up 12 per cent since midNovember, and hit an all-time high of $177.25 mid-week.

Europe's debt crisis could be the fly in the ointment, though.

Pundits predicting the euro's demise are getting serious attention.

European Commission President Jose Manuel Barroso denied on Friday that a financial

rescue plan was in the works for Portugal and called a newspaper's report that Portugal was under pressure to seek a bailout "absolutely false," while Spain said it did not need help to manage its finances. But the market was less sanguine and stocks took a nose dive.

Kate Schapiro, who runs an international equity fund out of San Francisco, said the declines in European stocks last week had looked "really, really ugly."

Her fund owns the New Yorklisted stock of Spain's Banco Santander, which has fallen 15 per cent last week.

Schapiro says Santander and other European stocks may be getting hit too hard and that strong companies are getting caught up in the general selling.

"At the end of the day," she said, "I think we are going to muddle through this, and this could be a buying opportunity -that's my gut" feeling, she added.

Periods of decline in November have worked off the S&P 500's overbought condition. The index has been finding support at around 1,180 and resistance at 1,200. That may serve as a short-term trading range.

Manny Weintraub, president of Integre Advisors in New York, said low volume is likely to mark trading in the near term, keeping stocks in their recent range. "We're entering a period with a lot of days of very weak volume," he said.

Bullish sentiment has been on the rise again, a factor that may worry contrarian investors who see bullishness as a "sell" signal.

Bullish sentiment rose 7.4 percentage points to 47.4 per cent, according to the latest sentiment survey by the American Association of Individual Investors. Bullish sentiment has now spent 12 consecutive weeks above its historical average of 39 per cent despite some drops in November. -Reuters

KARACHI: Karachi Stock Exchange (KSE) saw a bullish/bearish week but ended above 11,000 points as after a thumping start cagey investors quitted buying and booked profits ahead of SBP Monetary Policy Statement -which is due today (Monday).

The benchmark KSE 100Index increased by 179 points -1.63 per cent-- to close at 11,145 points. It touched a week-high of 11,262 points.

KSE 30-Index jumped by 151 points - 1.43 per cent-- to close at 10,748 points and KSE All Share Index grew by 121 points -1.6 per cent-- to close at 7,750 points.

After Eid holidays, market started the week with a major bull-run on Monday where due to heavy buying by the foreign investors index gained 239 points to close above 11,000 level after a period of about 28 months.

"Riding the wave of last week's bull-run, index broke through the 11,000 points' psychological barrier in the first trading session, with mainly oil sector scrips dominating the rally", said Sana Hanif, analyst at JS Global Capital.

According to experts, the news of a rise in Qadirpur Gas Filed production after the installation of most of the compressors invited buying in the oil giant OGDC while discovery in Makori East previous week also drove investors towards POL and PPL. Further, a hike in power tariff as well pushed investors into oil stocks while news regarding OGDC-PPL joint

bidding for BP's Pakistan stake too piqued investors' interest.

But the momentum fizzled out henceforth. Thus market saw some dull activities ending negative at the end of three out of four trading days as investors preferred to book profits following fears of rise in interest rate. In addition to that decline in regional stock markets did some damage too.

The monetary policy is due to be announced on Nov 29 (Today) for the next two months and there are expectations that the key policy rates would be increased by 50 basis points.

Further, the tussle between the political parties on Reformed General Sales Tax (RGST) and uncertainty over the release of next International Monetary Fund (IMF) tranche too affected investors' sentiments.

Foreigners stayed mainly on the buying side where according to NCCPL data they netbought equities worth $12.5 million during the last week while local funds did a netselling of $6.1 million.

Investor participation witnessed a significant improvement as 592.7 million shares traded during the week.

However volumes were lower during the last two days.

Last week, average daily turnover stood at 118 million shares --about 49 million more as compared to an average volume of 69 million a week earlier.

Out of total 426 active issues 245 advanced and 164 declined while 17 issues remained unchanged.

Gulf stocks mkt

Dubai hits 10-wk low, Abu Dhabi down under DUBAI: Dubai's index touched a 10 week low amid falling volumes, as uncertainties in global markets kept most investors on the sidelines.

The benchmark dropped 1.4 per cent, closing at 1,660 points, its lowest close since Sept 16.

Dubai builder Arabtec was one of the biggest losers, dropping 2.2 per cent to its lowest close since Sept 6. Courier firm Aramex lost 4.3 per cent.

"Very low volumes are traded as investors are worried about the performance of international markets," said Rami Sidani, head of investment at Schroders Middle East.

"The fall in UAE stocks is a reflection of what is happening in global markets," he added.

Developer Aldar Properties led the decline in Abu Dhabi as it drops 2.7 per cent. The index ended lower by 0.3 per cent at 2,750 points.

Telecoms operator Zain was the main drag as Kuwait's index slumped to a two month closing low. Zain dropped 1.4 per cent, having earlier slipped to a one week intraday low.

HSBC pulled out of the arranging group for Zain's proposed $1.5bn loan, leaving six banks to arrange the financing, sources said on Friday.

The benchmark fell 0.9 per cent ending at 6,869 points, its lowest finish since Sept 28.

Qatar's dropped 0.8 per cent at 8,111 points, a two week low, as losers outnumbered gainers 18 to zero. Doha Bank fell 1.4 per cent and Commercial Bank of Qatar slid 1.5 per cent.

Oman's Bank Muscat climbed to its highest level in more than two years as gains in its London listed global depository receipts (GDR) spurred foreign investors to buy the lender's shares on the local bourse.

Bank Muscat rose three per cent, touching its highest since September 2008.

"Bank Muscat is rising primarily because of the GDR prices," said Adel Nasr, United Securities brokerage manager.

"However, I do not expect it to go much higher," he added. The Oman index gained 0.5 per cent, reaching 6,582 points. -Agencies

Dhiyan

DIPS ARE YOURS Salman Naqvi, Head of Sales Aba Ali Habib Securities The developments regarding the approval of RGST and monetary policy would set the direction of market henceforth. If the interest rate is increased by 50bps then we may see a little correction. However, strong bearish activities could be seen if it is raised by 100bps. On the other hand, any negative development over RGST would hurt the market. Investors are advised to wait till things get settled down. Dips would be an opportunity and they can take positions in oil & gas stocks and in selective stocks of banking, cement, and fertiliser sectors. No change in interest rate could take the market upwards while rise in international oil prices and continued foreign buying would support the market as well. Today maybe a lackluster day.

Muhammad Ahsan Rasheed, Director Research & Marketing AMJ Growth Market trend depends upon the the monetary policy statement while approval of RGST could have a negative impact on it. It is better for the investors to buy at dips in fertiliser and refinery sectors with stop loss and focus on discounted scrips rather than index. Market has a strong support at 10,966 points level. The launch of Margin Trading System (MTS) with its unproblematic rules would be the only factor that could trigger the market in the coming days. Market would show mixed activities today.

6

Monday, November 29, 2010

Market

KSE 100 Index

Symbols

Volume

592,739,896

Value

26,724,925,229

Trades

351,001

Advanced Declined Unchanged Total

245 164 17 426

Current High Low Change

11,145.02 11,262.60 10,966.00 h179.02

Performance of SR Oil and Gas Index Open 1,419.29 Turnover 46,672,710 P/E (x) 10.76 Paid up Cap(mn)

Company

PE

Open

High

High Low 1,484.08 1,416.83 Total cos Defaulter cos P/BV (x) ROE (%) 3.50 32.54 Low

Close Chg

Volume

Last 60 days High Low

2010 Div BR (%) (%)

Company

Pak Int Container Terminal 1092

691

5.51 307.51

325.35 308.00 318.37 10.86

3629992 374.20

287.99

250

-

300

20

7.12 127.23

129.40 123.50 127.10 -0.13

11941631 129.70

76.20

-

-

-

-

Mari Gas Company

735 16.20 119.62

125.39 119.25 119.59 -0.03

418949

128.90

106.00 32.17 100B

31

-

National Refinery

800

273.00 260.25 260.71 -4.64

619379

273.00

189.08

200

-

125

-

Oil & Gas Development 43009 11.05 159.49

167.00 159.11 163.34

3.85

3361396 167.00

136.60

82.5

-

55

-

Pak Petroleum

205.00 193.18 202.09

8.37

6235520 214.10

168.70

130

20B

90

20B

Pak Oilfields XD

2365

Pak Refinery Limited

350

P.S.O

1715

6.26 255.59 -

82.81

4.79 283.22

Shell Gas LPG

226

-

37.50

Shell Pakistan

685 10.33 197.81

272.25 255.50 265.25 83.58

81.13

9.66

81.74 -1.07

292.15 282.50 283.27

14897217 272.25 51701

214.75

180

87.39

48.26

-

-

255

-

-

0.05

5836394 292.15

233.10

50

-

80

-

57853

40.28

27.32

-

-

-

-

204.00 197.51 201.34

3.53

102773

204.00

182.05

330

-

40

-

Performance of SR Chemicals Index Open 1,240.34 Turnover 87,529,479 P/E (x) 7.87 Company

Paid up Cap(mn)

PE

Open

High

High Low 1,273.86 1,237.30 Total cos Defaulter cos P/BV (x) ROE (%) 2.76 35.00 Low

Close Chg

Close 1,257.60 Listed cap 52,251.88 mn Payout (%) 48.81

Volume

Change % Change 17.26 1.39 Market cap 200-Day High 279,337.47 mn Div Yield (%) 200-Day Low 6.20 -

Last 60 days High Low

2009 Div BR (%) (%)

2010 Div BR (%) (%)

Bawany Air

68 74.58

8.49

9.84

7.92

8.95 0.46

15563

13.99

7.73

-

-

5

10R

BOC (Pak)

250 11.23

78.75

82.00

77.55

81.79 3.04

27662

87.99

66.90

90

-

15

-

273

5.89 152.92

156.90 152.00 154.00 1.08

39980

164.89

149.72

125

-

-

Dawood HerculesSPOT 1203

Clariant Pak

7.18 169.04

185.00 166.51 173.20 4.16

355240

185.00

157.01

40

10B

40

-

704303

1.82

1.28

-

-

-

-

13.79

9.15

15

-

15

-

8583238 186.74

165.60

Dewan Salman Dynea Pak Engro Corporation Ltd

3663

-

1.62

1.74

1.52

1.53 -0.09

94

-

10.20

10.89

9.15

10.79 0.59

3277 10.03 181.76

Fatima Fertilizer

22000

-

9.74

Fauji Fertilizer XD

6785

8.08 109.08

Fauji Fert. Bin Qasim

9341

6.40

ICI Pakistan

1388

7.61 133.77

Lotte Pakistan

15142

Mandviwala Nimir Ind Chemical

4.25

11.94

10.01

9.62

9.79 0.05

112.60 109.00 111.54 2.46 34.60

40

-

-

-

-

-

102.96 131.5

10B

95

-

11.74

6697399 112.60

6010B 40R

9.11

33.90 0.18

11365455 34.60

26.59

40

-

17.5

-

138.50 134.01 135.02 1.25

1111376 138.50

116.00

80

-

55

-

12.19

33.80

2717230

11.70

11.89 -0.05

52634921 12.19

7.85

5

-

-

-

-

1.67

1.83

1.41

1.64 -0.03

979750

3.00

0.80

-

-

-

-

1106

-

1.49

1.55

1.45

1.49 0.00

369837

1.65

1.16

-

-

-

-

-

2.50

2.80

2.10

2.45 -0.05

11335

3.40

1.80

-

-

-

-

123.90 115.05 120.49 2.45

21384

127.20

101.00

75

-

25

5B

120

Sitara Chem Ind XDXB

214

Sitara Peroxide

551 14.70 90

9.88 118.04 6.50

14.29

14.69

13.38

13.52 -0.77

955518

14.69

7.67

-

-

-

-

32.99

34.19

32.22

33.79 0.80

11026

46.25

32.00

50

-

50

-

Performance of SR Forestry & Paper Index Open 1,084.90 Turnover 95,517 P/E (x) 5.49 Company

Paid up Cap(mn)

High Low 1,097.67 1,063.87 Total cos Defaulter cos P/BV (x) ROE (%) 0.41 7.47

Close 1,065.20 Listed cap 1,186.83 mn Payout (%) 25.28

PE

Open

High

Low

Close Chg

Volume

Change % Change -19.70 -1.82 Market cap 200-Day High 2,951.81 mn Div Yield (%) 200-Day Low 4.60 -

Last 60 days High Low

Century Paper

707

-

16.75

17.15

15.80

15.85 -0.90

77835

21.80

15.28

Security Paper

411

6.10

39.18

40.00

38.50

39.50 0.32

15355

41.50

38.00

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

-

2010 Div BR (%) (%) -

-

50

-

Performance of SR Industrial Metals and Mining Index Open 929.07 Turnover 1,187,260 P/E (x) 3.09 Company

Paid up Cap(mn)

PE

25.00

High 25.79

Low 24.60

Close Chg 24.90 -0.10

Close 974.09 Listed cap 3,596.11 mn Payout (%) 30.91

Volume 157916

Last 60 days High Low 26.00

2009 Div BR (%) (%)

565

23.75

-

-

30

-

675

-

2.94

3.11

2.82

2.95 0.01

165641

3.39

1.65

-

-

-

-

Huffaz Pipe

555

9.30

14.93

15.35

14.50

14.88 -0.05

295744

16.75

12.25

-

30B

-

-

1199 10.73

46.20

53.99

46.26

51.48 5.28

564805

64.02

44.00

-

-

40

20B

Company

Paid up Cap(mn)

Company

Paid up Cap(mn)

Al-Abbas Cement

PE

Open

High

Low

Close 993.08 Listed cap 54,792.74 mn Payout (%) 19.04

Close Chg

Volume

Last 60 days High Low

2009 Div BR (%) (%)

2010 Div BR (%) (%)

-

3.25

3.45

3.20

3.25 0.00

108328

4.20

2.80

-

-

866

6.78

62.92

65.99

61.80

64.44 1.52

718640

69.86

57.60

50

20B

Balochistan Glass Ltd

858

-

1.72

1.84

1.10

1.53 -0.19

37705

2.05

1.01

-

Berger Paints

182

-

17.61

20.10

17.66

19.03 1.42

214436

20.10

14.01

-

Cherat Cement

956 26.82

12.08

12.59

11.77

11.80 -0.28

237899

12.75

9.51

-

-

-

-

Dadabhoy Cement

982 12.69

1.60

1.90

1.50

1.65 0.05

69592

2.20

1.30

-

-

-

-

1601839

1.99

1.30

-

-

-

-

13334849 31.05

23.02

-

20R

-

20R

3574

-

1.67

1.90

1.62

1.69 0.02

3651 117.00

28.99

29.54

27.90

28.08 -0.91

Fauji Cement

6933 15.15

Fecto Cement Flying Cement Ltd Frontier Ceramics Gharibwal Cement

- 100R 50

-

-

-

-

-

- 122R

5.04

5.14

4.95

5.00 -0.04

2313041

5.50

4.52

-

-

-

-

502

4.14

7.35

8.00

7.10

7.94 0.59

12129

8.20

4.25

-

10B

-

-

1760

-

1.83

1.94

1.70

1.80 -0.03

121376

2.20

1.70

-

-

-

-

77

-

2.49

3.00

1.75

2.19 -0.30

55586

5.00

1.18

-

-

-

-

2319

-

3.09

5.89

3.22

5.70 2.61

272924

6.25

2.11

-

-

-

Haydery Const

32

-

0.70

0.70

0.42

0.51 -0.19

72819

1.48

0.25

-

-

-

-

Kohat Cement

1288

-

7.02

8.70

6.89

7.08 0.06

1930190

8.70

5.50

-

-

-

-

-

Lucky Cement

3234

6.67

73.72

76.80

73.76

74.24 0.52

6218282

79.98

65.20

40

-

40

-

Maple Leaf Cement

5261

1.34

2.90

3.02

2.87

2.89 -0.01

1066837

3.40

2.51

-

-

-

-

Maple Leaf(Pref)

541

4.41

6.95

8.74

5.75

6.00 -0.95

14574

8.89

3.51

9.75

-

-

-

Pioneer Cement

2228

-

7.79

8.15

6.56

6.98 -0.81

11243301

8.58

6.56

-

-

-

-

200

-

5.52

6.00

5.30

5.94 0.42

38604

9.47

5.25

-

-

-

-

Safe Mix Concrete

Performance of SR General Industrials Index Open 938.95 Turnover 1,005,119 P/E (x) 2.72

High Low 974.77 939.16 Total cos Defaulter cos P/BV (x) ROE (%) 1.20 43.91

Close 951.68 Listed cap 3,043.31 mn Payout (%) 15.55

Change % Change 12.73 1.36 Market cap 200-Day High 35,424.85 mn Div Yield (%) 200-Day Low 5.71 -

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

Cherat Papersack

115

2.32

56.47

68.00

57.25

65.01 8.54

496473

68.00

34.00

-

-

20

ECOPACK Ltd

230

-

2.09

2.38

1.82

2.17 0.08

30650

2.64

1.70

-

-

-

-

1067

4.55

48.78

49.94

48.25

49.49 0.71

18074

61.99

45.75

30

10B

25

10B

317109

113.00

98.00

32.5

-

-

-

Company

Ghani Glass Packages Ltd

844 53.94 104.96

108.10 104.70 105.18 0.22

72.22

73.00

71.06

72.06

37.10

37.94

34.00

34.94

Change % Change -10.33 -1.38 Market cap 200-Day High 12,733.62 mn Div Yield (%) 200-Day Low 2.00 2009 Div BR (%) (%)

2010 Div BR (%) (%)

PE

Open

Last 60 days High Low

RSI (14-day)

63.95

Total Assets (Rs in mn)

-0.16

64603

78.20

60.05

-

20B

40

-

MA (10-day)

23.87

Total Equity (Rs in mn)

-2.16

66931

41.00

34.00

30

-

15

-

MA (100-day)

18.37

Revenue (Rs in mn)

MA (200-day)

18.73

Interest Expense

1st Support

23.82

Profit after Taxation

2nd Support

23.62

EPS 10 (Rs)

7.890

1st Resistance

24.35

Book value / share (Rs)

26.79

2nd Resistance

24.68

PE 11 E (x)

2.00

Pivot

24.15

PBV (x)

0.90

68.00

High Low 1,234.60 1,175.00 Total cos Defaulter cos P/BV (x) ROE (%) 1.12 25.35

High

Low

70.50

67.99

Close Chg

Close 1,182.56 Listed cap 6,768.53 mn Payout (%) 20.42

Volume

Change % Change -4.69 -0.40 Market cap 200-Day High 42,617.63 mn Div Yield (%) 200-Day Low 4.61 -

Last 60 days High Low

2009 Div BR (%) (%)

2010 Div BR (%) (%)

Agriautos Ind

144

5.30

70.00

2.00

47349

72.99

63.01

40

-

90

-

101

4.71 156.07

163.83 155.80 157.80

1.73

56501

194.25

131.00

100

20B

100

20B

Atlas Honda

626

7.54

99.21

104.89

4.79

11629

122.51

92.00

80

30B

-

-

Dewan Motors General Tyre

890 598 18.97

1.49 21.08

1.50 22.99

342662 112675

1.80 26.70

1.16 21.00

-

-

20

-

Ghandhara Nissan

450

Honda Atlas Cars

1428

3.35

4.90

-

12.60

Indus Motors

786

6.06 270.62

Pak Suzuki Sazgar Engineering

823 11.66 150 3.61

Transmission

117

-

96.90 104.00 1.40 21.10

1.42 -0.07 22.00 0.92

5.15

4.70

4.83 -0.07

65887

6.09

13.00

12.15

12.16 -0.44

112120

13.40

9.65

-

-

-

-

307110 282.45

212.29

100

-

150

-

282.45 264.00 265.50 -5.12

74.06 19.13

77.90 20.46

73.00 19.14

1.94

2.23

1.70

73.25 -0.81 19.33 0.20 2.00

2009 Div BR (%) (%)

2010 Div BR (%) (%) 25B

0.06

4.03

-

-

-

Technical Analysis

Company

Paid up Cap(mn)

PE

Open

5.07 207.97

High

High Low 1,570.74 1,516.82 Total cos Defaulter cos P/BV (x) ROE (%) 2.90 38.02 Low

AL-Ghazi Tractor

215

Bolan Casting

104

-

44.95

46.65

44.70

Ghandhara Ind

213 10.21

10.99

11.71

10.90

Hinopak Motor

124

Millat Tractors XB

366

Close Chg

215.48 207.50 211.64

3.67

Close 1,542.30 Listed cap 1,336.62 mn Payout (%) 131.49

Volume

2009 Div BR (%) (%)

2010 Div BR (%) (%)

40366

227.45

200.00

400

-

150

-

44.70 -0.25

9644

51.99

40.30

-

20B

25

10B

11.03

0.04

54780

18.80

10.55

-

-

-

-

- 131.99

147.89 128.25 133.50

1.51

22782

147.89

108.11 17.15

-

-

-

6.46 484.42

504.45 484.00 494.18

9.76

782003

597.90

390.00

25B

650

25B

450

4,432.51 13,343.54 1,101.05 931.47

-

282894 40850

79.50 27.58

69.25 17.92

5 -

20B

10

20B

10114

3.25

1.53

2

-

-

-

Performance of SR Food Producers Index Open 1,521.86 Turnover 1,131,674 P/E (x) 33.34 Company AL-Abbas Sugar AL-Noor Sugar Ansari Sugar Bawany Sugar Chashma Sugar Crescent Sugar Dewan Sugar Habib Sugar Habib-ADM Ltd J D WSugar Mehran Sugar Mirpurkhas Sugar Mirza Sugar National Foods Noon Pakistan XD Noon Sugar Pangrio Sugar Premier Sugar Punjab Oil Quice Food S S Oil Sakrand Sugar Sanghar Sugar Shahmurad Sugar Shakarganj Mills Tandlianwala

Paid up Cap(mn) 174 186 244 87 287 214 365 600 200 490 143 70 141 414 48 165 109 38 38 107 57 223 119 211 695 1177

PE 7.79 5.08 0.24 1.08 10.38 6.91 11.56 2.65 3.45 6.12 0.40 16.12 3.71 0.46 8.12 2.95 0.32 0.95 18.32 286.45

Open 94.43 50.00 5.00 1.40 13.87 6.48 1.75 34.60 12.50 78.90 59.50 59.50 5.93 43.25 23.33 14.69 5.91 42.99 39.33 2.06 3.50 3.00 13.92 12.60 5.48 32.90

High 95.00 52.00 5.60 3.17 15.47 6.45 2.17 35.24 12.80 80.00 64.00 61.99 6.48 46.00 27.30 14.84 6.50 48.00 39.33 2.45 3.70 3.30 13.99 13.20 7.24 34.00

High Low 1,608.68 1,502.89 Total cos Defaulter cos P/BV (x) ROE (%) 10.10 30.30 Low 91.00 48.05 5.00 1.50 12.50 5.50 1.60 33.51 12.00 76.66 57.25 53.64 5.60 42.75 24.40 12.31 5.00 42.00 39.33 2.06 3.06 2.11 13.25 12.41 4.75 31.50

Close Chg 94.99 50.00 5.07 2.42 13.35 5.50 1.82 33.53 12.49 79.25 61.60 58.19 6.39 43.20 26.00 12.44 5.65 44.28 39.33 2.10 3.70 2.32 13.25 12.64 6.55 31.51

0.56 0.00 0.07 1.02 -0.52 -0.98 0.07 -1.07 -0.01 0.35 2.10 -1.31 0.46 -0.05 2.67 -2.25 -0.26 1.29 0.00 0.04 0.20 -0.68 -0.67 0.04 1.07 -1.39

Close 1,554.54 Listed cap 11,335.33 mn Payout (%) 30.57

Volume 5052 64596 6500 10422 75113 59000 46373 258337 17828 8932 77778 9066 11148 17632 13128 15378 28069 25875 60000 12000 12000 21500 26213 21293 182172 16905

Change % Change 32.68 2.15 Market cap 200-Day High 199,959.52 mn Div Yield (%) 200-Day Low 0.92 -

Last 60 days High Low 98.10 52.00 6.00 3.17 15.47 6.98 2.17 36.00 16.98 81.95 64.00 62.77 6.48 57.00 27.30 14.84 6.50 48.00 39.33 3.40 3.89 3.50 14.90 13.20 7.24 35.50

76.95 39.25 4.03 0.85 8.50 5.50 1.11 25.85 11.90 60.10 48.50 53.64 4.20 39.01 17.51 10.20 4.00 32.50 32.80 1.60 2.51 2.11 12.90 8.25 3.21 27.50

2009 Div BR (%) (%) 40 40 35 40 40 35 25 50 30 15 10 15 -

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

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

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

35.82

Total Assets (Rs in mn)

10,325.49

MA (10-day)

7.48

Total Equity (Rs in mn)

2,218.22

MA (100-day)

7.53

Revenue (Rs in mn)

3,872.83

MA (200-day)

8.37

Interest Expense

1st Support

6.35

Loss after Taxation

2nd Support

5.66

EPS 10 (Rs)

1st Resistance

7.94

Book value / share (Rs)

2nd Resistance

8.84

PE 11 E (x)

Pivot

7.25

PBV (x)

392.66 (590.93) (2.870) 9.96 0.70

PIOC closed down -0.81 at 6.98. Volume was 6,468 per cent above average (trending) and Bollinger Bands were 19 per cent wider than normal. The company's loss after taxation stood at Rs86.285 million which translates into a Loss Per Share of Rs0.39 for the 1st quarter of current fiscal year (1QFY11).

PIOC is currently 16.6 per cent below its 200-day moving average and is displaying a downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume out of PIOC (bearish). Trend forecasting oscillators are currently bearish on PIOC.

Performance of SR Household Goods Index Open 1,079.37 Turnover 1,911,393 P/E (x) 2.50 Company Pak Elektron Tariq Glass Ind

Paid up Cap(mn) 1174 231

PE 3.57 1.96

Open 13.76 16.90

High 14.75 17.15

Open 959.06 Turnover 88,032,927 P/E (x) 6.21 Company

Paid up Cap(mn)

AL-Qadir Textile XD 76 Amtex Limited XD 2415 Artistic Denim 840 Azam Textile XD 133 Azgard Nine 4493 Bannu Woolen XD 76 Bata (Pak) 76 Chakwal Spinning XD 400 Chenab Limited 1150 Colony Mills Ltd 2442 Crescent Jute 238 D S Ind Ltd 600 Dawood Lawrencepur 514 Ellcot Spinning 110 Gadoon Textile XD 234 Gulistan Spinning XD 146 Gulshan SpinningXDXB 222 Hira Textile Mills Limited716 Ibrahim Fibres 3105 Ideal Spinning 99 Idrees Textile XD 180 Janana D Mal 43 Kohinoor Ind 303 Kohinoor Textile 1455 Leather Up 60 Masood Textile XD 600 Mian Textile 221 Mohd Farooq 189 Mukhtar Textile 145 Nagina Cotton 187 Nishat (Chunian) XD 1586 Nishat Mills XD 3516 Pak Synthetic 560 Prosperity 185 Ravi Textile 250 Reliance Cotton XD 103 Reliance Weaving 308 Rupali Poly 341 Saif Textile 264 Salfi Textile 33 Samin Textile 134 Sana Ind 55 Saritow Spinning 133 Service Ind 120 Shahtaj Textile XD 97 Suraj Cotton 180 Tata Textile 173 Thal Limited 307 Treet Corp 418 Yousuf Weaving 400

High Low 1,110.94 1,076.44 Total cos Defaulter cos P/BV (x) ROE (%) 0.27 10.64 Low 13.70 15.90

Close Chg 14.16 0.40 16.39 -0.51

Close 1,090.21 Listed cap 3,763.71 mn Payout (%) 6.27

Volume

Change % Change 10.83 1.00 Market cap 200-Day High 5,109.63 mn Div Yield (%) 200-Day Low 2.51 -

Last 60 days High Low

1744050 15.43 161208 18.80

12.82 14.50

2009 Div BR (%) (%) -

10B -

2010 Div BR (%) (%) 17.5

10B -

PE

Open

6.86 10.91 4.60 5.53 20.16 0.31 2.49 - 11.05 0.48 13.10 4.98 623.42 0.50 1.37 3.32 3.81 2.65 0.75 1.94 45.38 38.99 0.58 18.65 0.52 50.45 1.59 5.40 0.87 7.79 0.72 4.09 3.03 36.95 0.30 3.48 3.15 3.20 0.23 15.20 1.42 4.18 5.59 2.38 2.00 2.01 18.54 0.40 0.80 0.30 0.77 15.39 2.00 23.84 4.93 54.31 2.15 6.51 1.14 14.49 1.51 0.60 33.50 0.64 9.50 4.57 34.70 0.47 5.25 0.23 48.12 5.00 6.39 2.73 32.61 0.46 2.65 7.86 211.09 - 17.69 0.79 33.48 0.30 32.80 4.23 97.37 8.59 51.86 0.45 1.11

High

High Low 981.46 956.43 Total cos Defaulter cos P/BV (x) ROE (%) 0.54 8.64 Low

Close Chg

7.05 5.26 6.28 -0.58 5.28 4.66 4.80 0.20 21.29 19.85 19.90 -0.26 2.90 1.45 2.25 -0.24 12.17 10.87 11.14 0.09 13.70 12.60 13.70 0.60 649.00 590.00 600.35-23.07 1.95 0.90 1.13 -0.24 3.54 3.13 3.20 -0.12 2.84 2.41 2.44 -0.21 1.34 0.52 0.85 0.10 2.05 1.82 1.84 -0.10 42.94 37.50 38.57 -0.42 20.99 19.00 19.16 0.51 52.50 47.25 47.44 -3.01 8.34 5.70 8.34 2.94 8.50 7.00 7.15 -0.64 4.19 3.35 3.85 -0.24 39.00 36.26 38.49 1.54 4.25 3.15 3.50 0.02 3.25 2.90 2.90 -0.30 16.25 13.52 14.21 -0.99 1.73 1.41 1.54 0.12 5.89 5.21 5.85 0.26 3.00 1.55 2.00 0.00 20.00 19.00 19.02 0.48 0.75 0.39 0.45 0.05 1.25 0.66 0.81 0.01 0.64 0.31 0.45 0.15 15.49 14.75 15.10 -0.29 25.14 23.43 24.04 0.20 58.99 54.45 57.47 3.16 6.80 6.21 6.36 -0.15 14.98 13.30 14.88 0.39 1.58 1.42 1.52 0.01 34.00 33.00 34.00 0.50 10.34 8.50 9.23 -0.27 37.25 34.70 36.40 1.70 6.25 4.50 5.90 0.65 50.52 44.50 50.41 2.29 6.00 5.50 6.00 -0.39 35.99 32.74 35.99 3.38 2.82 2.15 2.82 0.17 235.51 211.10 229.59 18.50 17.50 17.10 17.35 -0.34 35.89 33.00 35.00 1.52 35.50 30.00 30.48 -2.32 102.49 97.26 99.05 1.68 55.20 52.02 53.93 2.07 1.75 1.11 1.30 0.19

Close 967.34 Listed cap 47,070.70 mn Payout (%) 16.68

Volume

Change % Change 8.28 0.86 Market cap 200-Day High 126,794.23 mn Div Yield (%) 200-Day Low 2.69 -

Last 60 days High Low

7229 7.05 6146524 19.24 19849 24.05 9083 3.45 24246176 12.32 19624 14.50 10266 747.48 11300 2.59 132254 3.95 77850 3.45 27837 1.90 115410 2.37 106518 44.50 28094 25.45 22439 52.50 12016 8.34 8816 10.30 549294 4.88 29389 40.30 21149 4.79 12318 5.35 8515 20.50 62488 1.93 163031 6.30 10503 3.00 8563 22.75 124864 0.98 37479 1.64 158032 0.97 5005 17.50 14835945 25.14 38671745 58.99 20716 7.48 8495 21.47 140488 2.38 100046 34.00 135165 12.00 5066 37.25 10694 6.49 5728 50.52 8802 8.69 51225 38.40 7773 2.99 178438 255.29 6691 21.90 47788 37.50 6093 35.50 527122 112.80 944307 55.25 5005 1.80

2.50 4.40 17.55 1.35 8.80 7.50 436.00 0.56 3.00 2.23 0.16 1.44 36.10 17.21 33.80 5.00 5.51 3.35 34.05 2.02 2.60 9.95 1.01 4.51 1.10 18.01 0.01 0.35 0.16 12.00 15.25 40.81 5.16 12.51 1.38 21.38 8.01 31.25 2.01 20.50 5.02 27.50 1.10 169.00 15.61 29.00 15.00 86.50 37.20 0.73

2009 Div BR (%) (%) 20 120 7.5 15 20 12.5 20 40 35 200 20 15 20 -

2010 Div BR (%) (%)

10 30 20 7.5 20 5 5 35 70 10B 10 10B 10 20B 10 20 10 15 100R - 20SD 50R 15 25 45R 30 20 - 25SD 40 25 - 100R 60 45 50 25 20B 80 20B -

Open 876.89 Turnover 314,522 P/E (x) 6.93 Company Abbott (Lab) Ferozsons (Lab) GlaxoSmithKline Highnoon (Lab) Searle Pak

Paid up Cap(mn) 979 250 1707 165 306

PE 8.67 6.27 13.16 6.97 5.52

Open 98.20 86.00 71.10 24.40 62.83

High 101.99 86.90 73.89 25.68 64.00

High Low 897.68 870.71 Total cos Defaulter cos P/BV (x) ROE (%) 1.55 22.31 Low 98.60 82.50 70.13 24.15 61.00

Close Chg 98.87 0.67 83.08 -2.92 73.17 2.07 25.17 0.77 61.40 -1.43

Close 882.69 Listed cap 3,904.20 mn Payout (%) 44.54

RSI (14-day)

53.60

Total Assets (Rs in mn)

2,549.61

MA (10-day)

4.27

Total Equity (Rs in mn)

2,509.06

MA (100-day)

3.96

Revenue (Rs in mn)

Volume 33508 11876 108256 64982 83481

104.00 124.00 75.99 25.68 64.50

78.00 82.20 65.00 22.60 57.00

28.92

MA (200-day)

4.18

Interest Expense

1st Support

4.10

Profit after Taxation

2nd Support

3.95

EPS 09 (Rs)

1st Resistance

4.40

Book value / share (Rs)

2nd Resistance

4.55

PE 10 E (x)

Pivot

4.25

PBV (x)

0.10 766.33 1.988 6.51 0.65

TRG closed down -0.04 at 4.25. Volume was 110 per cent above average and Bollinger Bands were 55 per cent narrower than normal. The company's loss after taxation stood at Rs1.398 million which translates into a Loss Per Share of Rs0.004 for the 1st quarter of current fiscal year (1QFY11).

TRG is currently 2.0 per cent above its 200-day moving average and is displaying a downward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into TRG (mildly bullish). Trend forecasting oscillators are currently bearish on TRG.

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

50.61

Total Assets (Rs in mn)

MA (10-day)

2.21

Total Equity (Rs in mn)

MA (100-day)

2.18

Revenue (Rs in mn)

MA (200-day)

2.50

Interest Expense

1st Support

2.13

Loss after Taxation

2nd Support

2.09

EPS 10 (Rs)

1st Resistance

2.24

Book value / share (Rs)

2nd Resistance

2.31

PE 11 E (x)

Pivot

2.20

PBV (x)

207,629.50 (525.11) 70,508.12 6,823.64 (14,641.22) (0.740) (0.02) (88.92)

KESC closed down -0.10 at 2.18. Volume was 50 per cent below average (consolidating) and Bollinger Bands were 21 per cent narrower 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 12.7 per cent below its 200-day moving average and is displaying an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of KESC at a relatively equal pace. Trend forecasting oscillators are currently bullish on KESC. Company

Change % Change 5.80 0.66 Market cap 200-Day High 29,448.07 mn Div Yield (%) 200-Day Low 6.42 -

Last 60 days High Low

Fundamental Highlights As on Jun 30, 2009

Technical Analysis

BOOK CLOSURES

Performance of SR Pharma and Bio Tech Index

Change % Change 23.59 1.55 Market cap 200-Day High 32,187.65 mn Div Yield (%) 200-Day Low 17.25 -

Last 60 days High Low

14,251.88

NCL closed up 0.20 at 24.04. Volume was 1 per cent below average and Bollinger Bands were 40 per cent wider than normal. The company's profit after taxation stood at Rs477.454 million which translates into an Earning Per Share of Rs3.01 for the 1st quarter of current fiscal year (1QFY11).

NCL is currently 28.4 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into NCL (mildly bullish). Trend forecasting oscillators are currently bullish on NCL.

Performance of SR Industrial Engineering Index Open 1,518.71 Turnover 911,953 P/E (x) 7.62

Fundamental Highlights As on Jun 30, 2010

Volume

Close Chg

Performance of SR Personal Goods Index

1828

Dewan Cement

7.21 37.98

Change % Change -6.75 -0.67 Market cap 200-Day High 71,409.13 mn Div Yield (%) 200-Day Low 2.70 -

Attock Cement

DG Khan Cement Ltd

Low

Close 736.26 Listed cap 3,242.17 mn Payout (%) 11.08

Atlas Battery

Performance of SR Construction and Materials Index High Low 1,029.15 977.48 Total cos Defaulter cos P/BV (x) ROE (%) 0.50 7.10

High

2010 Div BR (%) (%)

Dost Steels Ltd

Open 999.83 Turnover 42,993,311 P/E (x) 7.04

Open

Open 1,187.25 Turnover 1,351,451 P/E (x) 4.43

Change % Change 45.02 4.85 Market cap 200-Day High 9,530.65 mn Div Yield (%) 200-Day Low 10.00 -

Crescent Steel

International Ind

3.89

Open

High Low 1,005.32 922.68 Total cos Defaulter cos P/BV (x) ROE (%) 1.02 33.10

Alert ! Unusual Movements

10,748.30 10,894.06 10,596.46 h151.84

Performance of SR Automobile and Parts Index

-

74

Shaffi Chemical

Wah-Noble XD

33.72

186.74 181.50 182.57 0.81

6582

1321

High Low 756.36 726.31 Total cos Defaulter cos P/BV (x) ROE (%) 1.41 25.53

PE

-

0.46

35.10

PNSC

Paid up Cap(mn)

-

37.96

38.50

Current High Low Change

7,750.01 7,830.50 7,628.24 h121.77

Open 746.59 Turnover 131,534 P/E (x) 5.53

2009 Div BR (%) (%)

853

8.22 193.72

KSE 30 Index

Performance of SR Industrial Transportation Index

Attock Petroleum

11950

Current High Low Change

Close Change % Change 1,455.22 35.92 2.53 Listed cap Market cap 200-Day High 65,194.15 mn 1,140,059.82 mn Payout (%) Div Yield (%) 200-Day Low 55.94 5.20 -

Attock Refinery

3.86 265.35

All Share Index

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

20B 15B

2010 Div BR (%) (%) 20 30

20B -

From

To

Punjab Oil Mills #

30-Nov

06-Dec

-

-

06-Dec

East West Insurance Co.

1-Dec

7-Dec

D/B/R 10(B)

23-Nov

-

Dawood Hercules Chemicals #

2-Dec

8-Dec

-

-

8-Dec

Askari Gen. Insurance

2-Dec

8-Dec

25(R)

24-Nov

-

MCB Bank

3-Dec

10-Dec

30(iii)

25-Nov

-

Dawood Hercules Chemicals

7-Dec

13-Dec

20(ii)

29-Nov

-

Pakistan Premier Fund

7-Dec

14-Dec

-

-

14-Dec

Engro Corporation (Standalone

7-Dec

21-Dec

20(ii)

29-Nov

-

Fauji Fertilizer Bin Qasim

14-Dec

20-Dec

12.50(iii)

06-Dec

-

Oil and Gas Development Co

14-Dec

21-Dec

15(i)

06-Dec

-

Siemens Pakistan

20-Dec

29-Dec

600

08-Dec

29-Dec

INDICATIONS # Extraordinary General Meeting

Spot AGM/Date

7

Monday, November 29, 2010

Performance of SR Fixed Line Telecommunication Index Open 1,154.45 Turnover 9,785,383 P/E (x) 6.24 Paid up Cap(mn)

Company

High Low 1,183.16 1,139.25 Total cos Defaulter cos P/BV (x) ROE (%) 0.80 12.84

PE

Open

High

Low

Close Chg

Pak Datacom 78 4.99 Pakistan Telecomm Co A 37740 13.02 Telecard XD 3000 0.66 WorldCall Tele 8606 -

79.10 19.55 2.39 2.74

82.99 20.12 2.50 2.79

79.00 19.35 2.21 2.61

80.90 19.53 2.23 2.61

1.80 -0.02 -0.16 -0.13

Close 1,147.48 Listed cap 50,077.79 mn Payout (%) 62.56

Last 60 days High Low

Volume 5835 5797305 1754080 2228163

Change % Change -6.97 -0.60 Market cap 200-Day High 79,453.84 mn Div Yield (%) 200-Day Low 10.02 -

117.99 20.12 2.69 2.98

78.00 17.32 1.80 2.30

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

-

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

-

Ask Gen InsuranceSPOT Atlas Insurance Central Insurance XB Century Insurance EFU General Insurance Habib Insurance IGI Insurance New Jub Insurance Pak Reinsurance Pak Gen Insurance PICIC Ins Ltd Premier Insurance United Insurance XB

204 7.10 369 5.56 279 6.59 457 7.11 1250 400 2.87 718 16.35 791 15.82 3000 41.64 250 1.65 350 303 5.32 400 1.89

Paid up Cap(mn)

Company

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

High Low 1,249.39 1,207.65 Total cos Defaulter cos P/BV (x) ROE (%) 1.24 9.35

PE

Open

High

Low

198 11572 6.65 1560 7932 1695 10.56 126 2.57 8803 4.81 3673 3.02 3541 23.27 191 3.48 1367 150 -

0.80 35.54 1.55 2.28 19.48 4.76 39.26 13.75 14.80 18.98 2.18 0.81

0.95 37.00 1.60 2.39 20.44 4.85 40.05 14.19 15.29 18.99 2.30 1.34

0.78 35.65 1.50 2.16 18.40 4.20 39.10 13.50 14.30 17.98 2.11 0.99

Close 1,227.47 Listed cap 95,369.29 mn Payout (%) 104.13

Change % Change 17.12 1.41 Market cap 200-Day High 99,763.48 mn Div Yield (%) 200-Day Low 7.86 -

Close Chg

Volume

Last 60 days High Low

2009 Div BR (%) (%)

0.85 36.33 1.54 2.18 19.00 4.22 39.60 13.76 14.43 18.66 2.18 1.00

27353 14356864 130619 2882728 31665 11399 1026355 2735293 14056724 109038 1035565 50450

1.45 37.24 2.25 2.50 26.50 6.10 42.95 14.85 16.10 23.49 2.90 1.75

33.5 45 64.5 20 3

0.05 0.79 -0.01 -0.10 -0.48 -0.54 0.34 0.01 -0.37 -0.32 0.00 0.19

0.51 32.75 1.20 1.94 18.40 3.90 38.35 9.65 9.60 17.98 2.05 0.33

31R -

2010 Div BR (%) (%)

Open 1,668.14 Turnover 5,314,454 P/E (x) 10.21 Company Sui North Gas XD Sui South GasXDXB

High Low 1,682.90 1,595.28 Total cos Defaulter cos P/BV (x) ROE (%) 1.16 11.41

Close 1,610.51 Listed cap 12,202.80 mn Payout (%) 66.79

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

5491 8390

8.33 3.42

30.93 22.49

31.00 23.65

27.68 21.51

27.99 -2.94 22.71 0.22

3284336 2383815

34.75 30.70

25.55 18.71

2009 Div BR (%) (%) -

-

2010 Div BR (%) (%) 20 15

25B

Performance of SR Banks Index Open 1,043.45 Turnover 87,509,763 P/E (x) 7.53 Paid up Cap(mn)

Company

PE

Open

Allied Bank Limited 7821 5.84 58.50 Askari Bank 6427 7.69 15.85 Atlas Bank 5001 1.56 Bank Alfalah 13492 12.32 9.70 Bank AL-Habib 7322 7.15 33.30 Bank Of Khyber 5004 5.56 3.99 Bank Of Punjab 5288 9.43 BankIslami Pak 5280 850.00 3.34 Faysal Bank XB 7309 4.65 14.40 Habib Bank Ltd 10019 6.51 105.60 Habib Metropolitan Bank 8732 7.53 21.17 JS Bank Ltd 6128 2.75 KASB Bank Ltd 9509 2.35 MCB Bank LtdSPOT 7602 9.06 204.47 Meezan Bank 6983 8.35 14.81 Mybank Ltd 5304 1.98 National Bank 13455 5.73 66.03 NIB Bank 40437 2.78 Royal Bank Ltd 17180 5.29 Samba Bank 14335 1.85 Silkbank Ltd 26716 2.65 Soneri Bank 6023 7.29 Stand Chart Bank 38716 11.63 7.20 United Bank Ltd 12242 6.86 58.76

High

High Low Close 1,076.92 1,040.29 1,048.08 Total cos Defaulter cos Listed cap - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.05 13.94 40.49 Low

Close Chg

60.79 58.70 60.08 1.58 16.55 15.85 16.14 0.29 1.75 1.51 1.52 -0.04 10.03 9.55 9.61 -0.09 33.97 33.00 33.18 -0.12 4.60 3.65 4.17 0.18 10.59 9.51 9.58 0.15 3.88 3.27 3.40 0.06 14.60 14.05 14.40 0.00 108.79 102.55 104.22 -1.38 24.73 21.30 24.61 3.44 2.95 2.50 2.58 -0.17 2.59 2.16 2.25 -0.10 210.00 203.51 204.38 -0.09 16.32 14.85 15.78 0.97 2.25 1.90 2.01 0.03 68.15 65.50 65.62 -0.41 3.18 2.76 2.86 0.08 5.73 3.91 5.09 -0.20 1.95 1.80 1.81 -0.04 2.78 2.62 2.65 0.00 7.46 7.10 7.14 -0.15 7.70 7.20 7.56 0.36 60.00 58.00 58.35 -0.41

1748554 3910466 97858 3103733 685556 1305773 15923302 1744097 754859 1227313 952753 635231 122323 9057752 252207 361750 19060984 11169975 2029023 2258166 4577923 208191 124041 6197222

Change % Change 4.62 0.44 Market cap 200-Day High 636,863.73 mn Div Yield (%) 200-Day Low 5.38 -

Last 60 days High Low

Volume

60.79 16.65 2.55 10.19 33.97 4.70 10.59 3.88 17.10 108.79 24.73 3.00 2.98 210.00 16.32 2.75 70.75 3.25 8.40 2.65 3.08 8.00 8.00 60.00

48.51 14.00 1.50 7.32 29.10 2.50 7.56 2.60 12.85 92.55 18.02 2.00 2.03 180.60 14.05 1.62 60.51 2.42 3.91 1.51 2.50 5.01 6.00 49.90

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

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

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

Paid up Cap(mn)

Company Adamjee Insurance

High Low 768.02 737.69 Total cos Defaulter cos P/BV (x) ROE (%) 0.56 5.20

Close 749.58 Listed cap 11,111.34 mn Payout (%) 79.54

Change % Change 7.61 1.03 Market cap 200-Day High 46,541.68 mn Div Yield (%) 200-Day Low 7.38 -

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1237 23.35

81.91

84.45

80.05

80.56 -1.35

3954835

84.45

63.05

2009 Div BR (%) (%) 30

10B

2010 Div BR (%) (%) 10

-

11.72 34.95 58.00 11.37 46.78 12.04 88.14 58.70 16.24 6.96 7.45 9.85 5.76

0.57 -0.39 0.30 0.64 1.67 0.05 4.19 1.20 0.30 0.76 0.86 0.02 0.56

38708 27154 13303 290736 375394 41650 71718 15260 4374075 16324 501806 30070 12918

12.25 35.50 62.69 12.00 48.63 12.65 88.17 60.50 17.20 7.10 8.30 10.30 7.18

8.45 27.10 47.37 9.42 34.76 10.04 66.41 52.21 12.50 5.06 1.66 8.00 4.02

40 20 40 35 35 30 30 5 20 -

10B 25B 8.7B 20B 25B 15B 16B

10 10 -

25R 10B 20B -

High Low 979.46 875.80 Total cos Defaulter cos P/BV (x) ROE (%) 4.07 3.85

Close 959.71 Listed cap 2,290.72 mn Payout (%) 355.53

Symbols SERT SHDT SSIC STCL IFSL JOPP SLYT THCCL GFIL SRSM KASBM RICL SING GATM DINT FTSM ICCT WAZIR ATFF KSBP JKSM CLCPS QUET EXIDE DKTM DATM TRSM PPP FIBLM DNCC SCLL LATM DFSM DMTM KSTM DMTX BFMOD COTT PRET ZTL MQTM QUAT MACFL HUSI ALICO ADOS SHCM COLG FRSM TSMF ALTN PTEC BILF PAKL UVIC NESTLE GATI SCL IDYM SIEM ATEL BROT BTL CRTM GAIL FNEL DWAE ULEVER ADAMS SKFL ZAHT CLOV NPSM EMCO MERIT OTSU SHTM SGPL FZCM FCONM NMBL SAPL ARPAK ISIL AASM BWHL SAPT SFL BIFO BUXL CFL ARUJ AKGL AQTM SANE SIGL GLPL MEHT INKL SASML RMPL DADX CSIL PGCL DWTM JVDC HUSS GRAYS SHJS POAF KCL HAJT PHDL FNBM SZTM BCML GUTM SUTM ISTM BAFS UPFL SHNI MFFL TOWL ICL PASM FECS TRPOL WYETH SHEZ FZTM KML HWQS NATM DIIL KOSM LIBM

Change % Change 78.45 8.90 Market cap 200-Day High 11,039.03 mn Div Yield (%) 200-Day Low 3.37 -

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

EFU Life Assurance

850 46.85

78.02

86.00

77.40

82.46 4.44

60619

86.00

51.25

5513.33B

-

-

New Jub Life Insurance

627 32.11

42.99

48.33

42.50

47.85 4.86

221905

48.33

36.10

10

-

-

2009 Div BR (%) (%)

-

2010 Div BR (%) (%)

Performance of SR Financial Services Index Open 432.41 Turnover 64,668,174 P/E (x) 10.89

High Low 461.74 431.54 Total cos Defaulter cos P/BV (x) ROE (%) 0.30 0.91

Close 437.97 Listed cap 30,336.44 mn Payout (%) 99.56

Change % Change 5.56 1.29 Market cap 200-Day High 30,582.22 mn Div Yield (%) 200-Day Low 3.03 -

Paid up Cap(mn)

PE

AMZ Ventures

225

1.27

0.55

0.77

0.49

0.56 0.01

112227

1.10

0.42

-

-

-

-

Arif Habib Limited Dawood Cap Mngt. XB

450 13.69 150 1.56

26.85 1.47

27.74 2.14

26.65 1.47

26.84 -0.01 1.75 0.28

499741 320855

34.00 2.14

24.40 0.86

15 -

25B -

-

20B -

Dawood Equities Grays Leasing

250 215

-

1.99 1.30

2.69 2.30

1.79 0.66

2.15 0.16 1.10 -0.20

440566 13433

2.70 2.90

1.51 0.32

-

-

-

-

2121 16.25

2.75

2.88

2.60

2.60 -0.15

51272

2.88

IGI Investment Bank

Open

High

Low

Close Chg

Last 60 days High Low

Volume

2009 Div BR (%) (%)

2010 Div BR (%) (%)

1.17

-

-

-

Invest Bank

2849

-

0.62

0.76

0.56

0.69 0.07

154215

1.00

0.44

-

-

-

-

Ist Cap Securities

3166

-

3.70

3.90

3.44

3.49 -0.21

250242

4.80

2.54

-

10B

-

10B

136494

2.84

-

Ist Dawood Bank

-

626

0.66

1.87

2.09

1.81

1.86 -0.01

1.17

-

-

-

Jah Siddiq Co

7633

-

12.55

14.05

12.59

12.93 0.38

54718241

14.05

8.80

-243.778B 10

-

JOV and CO JS Global Cap JS Investment

508 500 8.05 1000 29.58

4.34 30.40 7.07

4.60 32.00 7.59

4.11 29.05 6.89

4.16 -0.18 29.95 -0.45 7.10 0.03

1930082 81263 2161629

5.38 40.00 7.59

1.96 24.25 5.10

150 -

-

-

-

-

Orix Leasing

821

5.22

6.10

7.20

5.70

7.10 1.00

117503

7.20

3.66

-

-

-

Pervez Ahmed Sec

775

-

2.40

2.49

2.20

2.29 -0.11

512020

2.70

1.35

-231.08R

-

-

Saudi Pak Leasing

452

-

0.60

0.75

0.52

0.56 -0.04

118030

0.86

0.42

-

-

-

-

Sec Inv Bank

514 12.00

2.90

3.45

2.10

3.00 0.10

32560

3.90

1.65

-

-

-

-

Trust Inv Bank

586

1.71

2.70

1.55

2.00 0.29

13559

2.98

1.24

-

-

-

-

2010 Div BR (%) (%)

Performance of SR Non Life Insurance Index Open 741.97 Turnover 9,773,901 P/E (x) 10.78

Paid up Cap(mn)

Company

Company

Change % Change -57.63 -3.45 Market cap 200-Day High 34,422.42 mn Div Yield (%) 200-Day Low 6.54 -

10.51 34.00 57.00 10.50 45.00 11.95 81.10 55.10 15.92 6.10 7.00 9.65 5.00

Open 881.27 Turnover 305,225 P/E (x) 105.63

50 - 7.8R 15 50 20 -

Performance of SR Gas Water and Multiutilities Index

11.90 35.50 62.69 11.50 47.34 12.65 88.17 60.00 17.20 7.10 8.30 10.30 6.59

Performance of SR Life Insurance Index

Performance of SR Electricity Index Open 1,210.34 Turnover 36,456,394 P/E (x) 13.24

11.15 35.34 57.70 10.73 45.11 11.99 83.95 57.50 15.94 6.20 6.59 9.83 5.20

3.13

Performance of SR Equity Investment Instruments Index Open 1,081.57 Turnover 28,986,478 P/E (x) 16.43

High Low 1,168.15 1,080.11 Total cos Defaulter cos P/BV (x) ROE (%) 0.36 2.21

Paid up Cap(mn)

PE

Open

High

Low

1st Fid Leasing 264 AL-Meezan Mutual F. 1375 AL-Noor Modaraba 210 B R R Guardian Mod. 780 Crescent St Modaraba XD 200 Elite Cap Modaraba XD 113 Equity Modaraba 524 First Capital Mutual F. 300 First Dawood Mutual F. 581 Golden Arrow XD 760 H B L Modaraba 397 Habib Modaraba 1008 JS Growth Fund 3180 JS Value Fund 1186 Meezan Balanced Fund 1200 Mod Al-Mali 184 NAMCO Balanced Fund 1000 Pak Modaraba 125 Pak Prem Fund 1698 Paramount Modaraba 59 PICIC Energy Fund XD 1000 PICIC Growth Fund 2835 PICIC Inv Fund 2841 Prud Modaraba 1st 872 Punjab Modaraba XD 340 Stand Chart Modaraba 454 U D L Modaraba XD 264

9.38 5.61 4.18 4.11 1.38 3.06 10.75 10.50 0.61 2.04 2.30 5.60 53.63 16.50 5.76 10.20 5.08 5.00 12.10 6.25 1.61 6.14 5.30 2.16 4.41 1.63

1.50 6.35 2.90 1.44 0.59 2.59 1.35 4.45 2.00 2.76 6.38 6.50 3.48 3.26 5.20 1.06 3.09 0.72 8.60 8.00 5.79 8.90 4.35 0.90 1.60 8.70 5.85

1.80 6.97 2.90 2.37 0.70 2.69 2.37 4.50 2.10 2.89 6.91 6.60 4.50 4.73 5.99 1.17 3.70 1.00 8.84 8.50 5.69 9.75 4.93 0.99 2.54 9.00 6.25

1.32 6.21 2.51 1.37 0.45 2.40 1.34 4.02 1.82 2.67 6.38 6.40 3.40 3.25 5.25 0.92 3.00 0.73 8.57 8.00 5.31 8.95 4.40 0.83 1.30 8.90 5.30

Company

Close Chg 1.50 6.73 2.51 1.81 0.55 2.45 1.72 4.20 1.93 2.85 6.89 6.50 4.29 4.62 5.99 1.02 3.25 1.00 8.71 8.00 5.55 9.58 4.66 0.95 1.59 8.99 5.75

0.00 0.38 -0.39 0.37 -0.04 -0.14 0.37 -0.25 -0.07 0.09 0.51 0.00 0.81 1.36 0.79 -0.04 0.16 0.28 0.11 0.00 -0.24 0.68 0.31 0.05 -0.01 0.29 -0.10

Close 1,147.82 Listed cap 29,771.58 mn Payout (%) 104.74

Change % Change 66.25 6.13 Market cap 200-Day High 16,527.95 mn Div Yield (%) 200-Day Low 9.90 -

Volume

Last 60 days High Low

2009 Div BR (%) (%)

2010 Div BR (%) (%)

10628 248574 15300 2081012 127355 138015 1621201 247095 128181 461097 133763 90590 9536365 9437100 322420 9813 22002 6006 1565465 8190 462126 672440 1230649 63430 97659 134127 95727

2.24 7.20 3.80 2.37 1.10 3.09 2.37 5.50 2.10 3.88 6.91 7.25 4.50 4.73 6.69 2.18 3.70 1.40 9.39 9.45 5.95 9.75 4.93 1.20 2.54 10.99 6.99

4.5 5 20 10 5 15 16.5 10

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

1.01 5.85 2.10 0.90 0.16 1.65 0.76 1.02 1.30 2.32 4.80 5.56 2.65 2.31 5.15 0.56 2.25 0.30 7.00 7.00 4.20 7.60 3.50 0.76 0.57 7.75 4.71

-

-

Open 0.25 9.49 6.61 8.20 6.89 8.85 3.72 20.37 3.25 1.76 1.41 6.50 18.26 24.50 25.11 1.07 0.80 5.50 3.68 68.83 6.04 1.96 40.28 153.59 2.34 0.18 1.20 40.50 1.96 2.91 2.30 6.75 7.00 4.50 0.62 1.50 3.79 1.10 28.59 3.55 6.81 10.49 2.84 9.70 17.02 15.70 9.55 870.00 20.05 1.45 9.10 1.85 1.26 2.00 2.91 1931.59 43.75 71.91 262.80 1310.68 17.06 0.22 47.00 19.75 4.25 9.89 0.70 4076.33 16.90 0.87 3.44 48.57 21.82 3.14 18.13 33.30 0.60 1.29 53.10 1.75 1.33 129.40 13.52 71.39 25.89 33.60 103.00 121.50 45.30 11.10 10.50 5.00 4.54 1.16 2.90 9.75 60.00 55.00 9.00 5.75 1917.22 23.90 3.90 18.49 0.00 59.98 10.90 51.83 72.40 8.40 9.50 0.50 42.19 6.86 5.01 15.25 22.05 35.30 6.20 56.00 1087.00 14.00 70.71 14.90 25.64 8.25 40.36 0.60 850.00 93.15 425.00 2.47 20.48 10.70 9.10 1.05 55.50

High 0.50 11.98 7.72 9.44 7.97 10.70 4.50 20.00 4.00 2.09 1.89 6.50 19.26 24.99 26.35 1.70 1.70 6.98 3.68 70.00 6.70 2.25 46.47 164.89 2.90 0.90 1.51 41.44 2.00 3.00 2.89 7.25 6.90 6.88 0.89 2.45 3.95 1.45 29.50 4.00 7.25 11.74 3.00 9.90 17.99 15.80 11.98 926.99 20.99 1.54 10.10 2.99 1.99 2.00 3.75 2060.00 44.88 87.45 277.90 1381.00 17.06 0.74 47.99 19.78 5.75 10.50 0.70 4345.00 16.90 1.10 3.44 53.73 22.80 3.95 18.38 34.19 0.69 1.00 54.50 1.98 1.69 129.40 14.25 74.00 26.98 36.72 107.50 125.00 49.75 12.00 11.50 5.49 5.00 1.50 2.90 10.00 63.90 57.00 9.50 5.75 2050.00 25.00 4.60 20.63 4.80 60.00 11.10 55.23 87.89 9.00 9.50 0.60 42.19 6.86 7.00 14.85 24.30 35.30 6.50 67.00 1090.00 14.00 73.00 13.90 28.70 9.48 40.50 1.49 889.00 100.25 438.00 3.47 21.50 11.00 12.59 1.60 56.50

Technical Analysis RSI (14-day) MA (5-day)

Leverage Position

71.74

Support 1

11,120.95

11,162.42

Support 2

11,096.90

MA (10-day)

11,040.90

Resistance 1

11,182.55

MA (100-day)

10,220.86

Resistance 2

11,220.10

*Arif Habib Ltd AKD Securities Ltd

10,102.17

Pivot

Rs Recommendations Buy

*Arif Habib Ltd

59.97

Buy

AKD Securities Ltd

Positive

TFD Research

74.2

Technical Outlook Technical Analysis

Free Float Shares (mn) 175.80 Free Float Rs (mn) 10,103.22 CFS Shares (mn) N/A CFS Rs (mn) N/A CFS Rate N/A ** NOI Rs (mn) 214.01

Index will continue to find its 1st support level at 11,120.95 and 2nd sup- * Target price for Dec-10 & **Net Open Interest in future market port level at 11,096.90.

NML closed up 3.16 at 57.47. Volume was 37 per cent below average and KSE 100 INDEX is currently 10.4 per cent above its 200-day moving average Bollinger Bands were 13 per cent wider than normal. and is displaying an upward trend. Volatility is relatively normal as compared NML is currently 13.0 per cent above its 200-day moving average and is to the average volatility over the last 10 trading sessions. Volume indicators displaying an upward trend. Volatility is relatively normal as compared to reflect moderate flows of volume into INDEX (mildly bullish). Trend forecasting the average volatility over the last 10 trading sessions. Volume indicators oscillators are currently bullish on INDEX. Momentum oscillator is currently reflect moderate flows of volume into NML (mildly bullish). Trend forecastindicating that INDEX is currently in an overbought condition. ing oscillators are currently bullish on NML.

Fair Value

Rs Recommendations

Brokerage House

*Arif Habib Ltd

47

Buy

*Arif Habib Ltd

AKD Securities Ltd

44

Buy Positive

TFD Research

44.9

Technical Analysis 68.42 35.40 34.52 34.06 36.37 36.33

810.01 29,427.59 N/A N/A N/A N/A

Rs Recommendations

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

TFD Research

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

318.37 20,891.24 N/A N/A N/A 83.25

Date

Time

30-11-2010 30-11-2010 03-12-2010

11:00 2:00 7:00

Buy

AKD Securities Ltd

TFD Research

36.85

Positive

TFD Research

Fair Value 35 32.06 29.1

Rs Recommendations

Leverage Position 182.55 5,125.99 N/A N/A N/A 27.68

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

71.12 33.59 29.23 29.63 34.06 34.20

Allied Bank Limited

78.44

59.35

58.60

60.60

61.10

59.85

Attock Cement

56.18

62.80

61.20

65.75

67.10

64.15

Arif Habib Corp

64.16

26.00

25.70

26.80

27.30

26.50

Arif Habib Limited

50.87

26.45

26.05

27.45

28.05

27.05

Adamjee Insurance

61.48

79.80

79.05

81.55

82.55

80.80

Askari Bank

59.93

16.05

16.00

16.25

16.35

16.15

Azgard Nine

52.51

10.95

10.75

11.50

11.80

11.30

Attock Petroleum

53.11

316.00

313.60

322.40 326.40 320.00

Attock Refinery

75.06

125.70

124.30

128.30 129.50 126.90

Bank Al-Falah

54.00

9.50

9.40

9.75

9.90

9.65

BankIslami Pak

56.11

3.20

2.95

3.75

4.10

3.55

Bank.Of.Punjab

55.22

9.40

9.25

9.85

10.15

9.70

Leverage Position

63.98 259.99 234.56 233.12 266.49 263.88

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

107.94 28,630.21 N/A N/A N/A 218.98

Fair Value

Hold

57.02

1.65

1.60

1.75

1.80

1.70

D.G.K.Cement

52.38

27.85

27.60

28.40

28.70

28.15

Dewan Salman

44.70

1.50

1.45

1.60

1.65

Dost Steels Ltd

59.19

2.85

2.80

3.00

3.05

2.95

EFU General Insurance 63.13

45.90

45.05

47.50

48.20

46.60

84.15

85.80

83.05

64.87

81.40

80.35

Engro Chemical

57.80

181.30

180.05

Faysal Bank

42.60

14.20

14.00

Fauji Cement

52.40

4.95

4.90

5.05

5.10

5.00

Fauji Fert Bin

71.12

33.75

33.60

34.10

34.35

33.95

Fauji Fertilizer

61.92

110.80

110.10

112.40 113.30 111.70

Habib Bank Ltd

54.42

102.75

101.30

105.45 106.70 104.00

Hub Power

68.42

35.95

35.60

ICI Pakistan

63.47

134.55

134.10

135.95 136.85 135.45

Indus Motors

71.29

261.65

257.85

271.65 277.85 267.85

57.44

4.05

3.95

4.35

4.55

4.25

1.50

1.45

1.60

1.65

1.55

2.45

2.30

2.80

3.00

2.65

Jah Siddiq Co

44.21

12.70

12.45

13.30

13.65

13.05

Kot Addu Power

45.20

39.30

39.00

39.90

40.20

39.60

K.E.S.C

50.61

2.15

2.10

2.25

2.30

Lotte Pakistan

73.12

11.85

11.75

12.00

12.10

11.95

Lucky Cement

51.87

73.45

72.60

75.45

76.70

74.65

MCB Bank Ltd

54.24

203.75

203.15

Maple Leaf Cement

48.32

2.85

2.80

2.95

3.00

2.90

National Bank

48.72

65.45

65.25

65.95

66.25

65.75

Nishat (Chunian)

63.95

23.85

23.65

24.35

24.70

24.15

Netsol Technologies

19.15

50.75

18.85

18.70

19.35

19.65

53.11

2.80

2.70

3.00

3.15

52.81

1.45

1.40

1.55

1.60

1.50

Nishat Mills

66.09

56.85

56.20

58.50

59.50

57.85

69.86

162.15

161.00

218.18

Neutral

PACE (Pakistan) Limited 47.97

Leverage Position 342.10 69,917.73 N/A N/A N/A 72.92

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

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

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

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

HUBC closed up 0.79 at 36.33. Volume was 125 per cent above average and Bollinger Bands were 57 per cent wider than normal.

HUBC is currently 6.7 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 HUBC (mildly bullish). Trend forecasting oscillators are currently bullish on HUBC.

DGKC closed down -0.91 at 28.08. Volume was 58 per cent below average (consolidating) and Bollinger Bands were 5 per cent narrower than normal.

DGKC is currently 4.6 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of DGKC at a relatively equal pace. Trend forecasting oscillators are currently bullish on DGKC.

FFBL closed up 0.18 at 33.90. Volume was 23 per cent below average and Bollinger Bands were 51 per cent wider than normal.

FFBL is currently 15.4 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 FFBL (mildly bullish). Trend forecasting oscillators are currently bullish on FFBL. Momentum oscillator is currently indicating that FFBL is currently in an overbought condition.

MCB closed down -0.09 at 204.38. Volume was 12 per cent above average and Bollinger Bands were 59 per cent narrower than normal.

MCB is currently 1.2 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 volume flowing into and out of MCB at a relatively equal pace. Trend forecasting oscillators are currently bullish on MCB.

205.25 206.15 204.65

Nimir Ind.Chemical

TFD Research

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

2.20

NIB Bank

Negative

54.24 204.40 197.15 201.99 205.76 206.76

36.40

43.77

Oil & Gas Dev. XD

Technical Analysis

37.20

14.40

48.40

Neutral

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

36.75

14.80

JS Bank Ltd

189.75

326.94 11,083.22 N/A N/A N/A 30.80

14.60

Japan Power

AKD Securities Ltd

Leverage Position

184.15 185.75 182.90

J.O.V.and CO

Accumulate

Technical Outlook

1.55

EFU Life Assurance

*Arif Habib Ltd

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

205

Rs Recommendations

Dewan Cement

Buy

Technical Outlook

1st 2nd Pivot Resistance 3.30 3.35 3.25

Neutral

Technical Analysis

Brokerage House

RSI 1st 2nd (14-day) Support 53.82 3.20 3.15

Buy

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

Brokerage House

5000 4686 4365 4281 4208 4060 4048 4003 3901 3901 3806 3801 3734 3713 3656 3506 3501 3499 3403 3331 3314 3296 3204 3033 2905 2832 2507 2327 2314 2215 2197 2148 2099 2091 2081 2052 2021 2013 2012 2004 2001 1848 1770 1724 1701 1679 1670 1666 1652 1551 1540 1533 1527 1500 1500 1473 1467 1444 1422 1357 1300 1232 1203 1171 1163 1073 1055 1026 1010 1000 999 992 950 909 859 809 803 801 773 746 711 698 669 603 597 565 549 548 544 503 502 501 500 500 500 500 466 400 394 300 282 250 211 204 200 194 194 191 179 162 150 150 137 132 105 103 102 102 90 83 78 73 65 63 61 61 50 50 46 27 26 26 22 20 17 17 15

296.6 281.35

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

Vol

0.25 1.51 0.53 0.90 0.41 1.15 0.00 -0.57 0.75 0.23 -0.15 0.00 -0.25 0.25 1.19 0.58 0.68 1.40 -0.14 1.12 -0.97 -0.24 5.72 9.38 -0.84 0.32 0.31 -0.84 0.04 -0.01 0.50 0.25 -2.00 0.40 0.17 0.95 0.16 0.00 0.41 0.34 0.34 1.25 -0.03 0.20 0.97 -0.83 1.35 15.00 0.50 -0.59 1.00 0.24 0.09 -0.40 0.05 63.38 0.23 15.07 6.20 14.94 -1.06 0.49 -0.01 0.03 0.06 -1.00 0.00 56.67 -0.20 0.23 -0.14 5.16 0.43 -0.14 -0.25 0.85 -0.05 -0.79 1.40 0.23 -0.10 -7.40 0.73 2.48 -0.64 3.12 -0.70 -3.81 2.19 -1.05 0.80 0.49 0.46 0.34 -0.89 0.25 0.50 -0.90 0.50 -1.00 -66.62 1.10 -0.15 2.14 0.00 -0.01 0.07 1.60 15.49 0.40 0.00 0.10 -2.19 -0.11 1.99 -1.85 1.95 -0.31 -0.75 8.00 -51.50 -1.00 -0.71 -2.00 2.66 0.74 -0.36 0.39 20.00 7.10 5.00 0.03 -2.98 -1.65 1.70 -0.15 0.99

Buy

Technical Outlook

Leverage Position

Change

301

POL closed up 9.66 at 265.25. Volume was 31 per cent below average and Bollinger Bands were 59 per cent wider than normal.

POL is currently 13.8 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into POL (mildly bullish). Trend forecasting oscillators are currently bullish on POL.

43.29

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

AKD Securities Ltd

Positive

Rs Recommendations

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

AKD Securities Ltd

52.38 28.69 26.18 26.85 28.63 28.72

Neutral

92.3

Fair Value

NBP closed down -0.41 at 65.62. Volume was 60 per cent below average (consolidating) and Bollinger Bands were 36 per cent narrower than normal.

NBP is currently 2.1 per cent below its 200-day moving average and is displaying an upward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of NBP at a relatively equal pace. Trend forecasting oscillators are currently bullish on NBP.

*Arif Habib Ltd

Technical Analysis

61.96

48.72 66.27 65.94 70.37 66.42 66.83

Buy

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

Brokerage House *Arif Habib Ltd

Technical Analysis

Technical Outlook

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

Rs Recommendations Buy

84

42

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

Fair Value

Fair Value

Technical Outlook

Leverage Position

66.09 55.87 48.67 50.84 57.34 56.72

11,158.50

KSE 100 INDEX closed up 179.02 points at 11,145.02. Volume was 12 per

Brokerage House

Brokerage House

65

TFD Research

RSI (14-day) MA (10-day) MA (100-day) cent below average and Bollinger Bands were 12 per cent wider than nor- MA (200-day) mal. As far as resistance level is concern, the market will see major 1st Mean resistance level at 11,182.55 and 2nd resistance level at 11,220.10, while Median MA (200-day)

Fair Value

0.50 11.00 7.14 9.10 7.30 10.00 3.72 19.80 4.00 1.99 1.26 6.50 18.01 24.75 26.30 1.65 1.48 6.90 3.54 69.95 5.07 1.72 46.00 162.97 1.50 0.50 1.51 39.66 2.00 2.90 2.80 7.00 5.00 4.90 0.79 2.45 3.95 1.10 29.00 3.89 7.15 11.74 2.81 9.90 17.99 14.87 10.90 885.00 20.55 0.86 10.10 2.09 1.35 1.60 2.96 1994.97 43.98 86.98 269.00 1325.62 16.00 0.71 46.99 19.78 4.31 8.89 0.70 4133.00 16.70 1.10 3.30 53.73 22.25 3.00 17.88 34.15 0.55 0.50 54.50 1.98 1.23 122.00 14.25 73.87 25.25 36.72 102.30 117.69 47.49 10.05 11.30 5.49 5.00 1.50 2.01 10.00 60.50 54.10 9.50 4.75 1850.60 25.00 3.75 20.63 0.00 59.97 10.97 53.43 87.89 8.80 9.50 0.60 40.00 6.75 7.00 13.40 24.00 34.99 5.45 64.00 1035.50 13.00 70.00 12.90 28.30 8.99 40.00 0.99 870.00 100.25 430.00 2.50 17.50 9.05 10.80 0.90 56.49

Mirpurkhas Sugar Mills Limited Chenab Limited TRG Pakistan Ltd

Company

Brokerage House

Close

0.26 9.40 6.70 7.50 6.22 8.15 3.61 19.25 3.00 1.81 1.26 6.50 18.00 24.00 24.02 1.20 0.80 5.90 3.51 68.81 5.00 1.72 40.18 152.00 1.50 0.11 1.20 39.00 1.16 2.75 2.30 6.75 5.00 4.11 0.53 1.50 3.00 0.75 29.00 3.10 7.00 11.09 2.50 9.50 17.02 14.76 10.50 837.00 20.08 0.86 9.10 1.77 1.15 1.55 2.80 1905.02 40.71 70.00 257.00 1300.00 16.00 0.16 46.10 18.75 4.25 8.89 0.35 3950.00 15.80 0.87 3.30 46.15 22.25 2.40 17.10 32.50 0.50 0.50 53.10 1.01 1.20 120.00 12.52 69.83 25.25 31.70 102.30 117.69 43.57 10.05 10.00 4.25 4.00 1.50 2.01 9.75 60.01 53.31 9.00 4.75 1840.00 24.71 3.30 18.49 3.80 57.00 9.25 50.00 73.00 8.00 9.50 0.50 38.00 5.51 5.00 13.40 22.05 34.00 5.45 58.80 1032.65 13.00 69.00 12.90 26.90 8.99 40.00 0.60 830.00 90.51 405.00 1.91 17.50 9.05 9.50 0.16 55.50

Company

Al-Abbas Cement

Technical Outlook

Low

2.85

2.80

2.90

164.25 165.20 163.10 2.95

3.00

2.90

Pervez Ahmed Sec

56.44

2.20

2.15

2.35

2.40

2.30

P.I.A.C.(A)

48.05

2.20

2.15

2.30

2.40

2.25

Pioneer Cement

35.82

6.30

5.65

7.90

8.80

7.25

Pak Oilfields

63.98

263.45

261.65

268.15 271.05 266.35

Pak Petroleum

66.67

200.90

199.70

204.15 206.20 202.95

Pak Suzuki

44.22

72.55

71.80

P.S.O. XD

57.20

281.55

279.80

P.T.C.L.A

56.19

19.40

19.30

74.45

75.60

73.70

Shell Pakistan

63.03

198.40

195.45

Sui North Gas

29.53

27.65

27.30

28.35

28.70

28.00

Sitara Peroxide

61.24

13.35

13.20

13.70

13.85

13.55

Sui South Gas

40.35

22.50

22.25

22.95

23.20

22.75

Telecard

43.06

2.20

2.15

2.30

2.40

TRG Pakistan

53.60

4.10

3.95

4.40

4.55

4.25

United Bank Ltd

61.22

57.90

57.45

58.90

59.45

58.45

WorldCall Tele

50.46

2.60

2.55

2.70

2.75

2.65

286.00 288.70 284.25 19.65

19.75

19.50

204.15 206.95 201.20

2.25

Freddie Mac may hike fees on some US mortgages 8

Monday, November 29, 2010

Foreign labour health cover mandatory in Malaysia KARACHI: M Mazharul Haq, Director-GSD (SBP-BSC), Ahsan Kamal Director-HRD (SBP),Taher G Sachak Managing Director & CEO EFU Life, S Ali Raza Zaidi Executive Director EFU Life with other senior executives of State Bank of Pakistan and EFU Life Assurance. Staff Photo

India probes 21 cos in bribes-for-loans scandal

India insurers face graft investigation NEW DELHI: India's federal investigator is probing 21 sizeable companies for links to a bribes-for-loans scandal that has hit lending and infrastructure shares and rocked the country's image as an investment destination.

Eight financial executives from the public and private sectors have been arrested in the scandal, one of several to dog the government of Prime Minister Manmohan Singh and test India's ability to crack down on corruption.

Many of the companies the federal Central Bureau of Investigation (CBI) has linked to the case are connected to the booming infrastructure sector - builders of dams, power plants, energy equipment makers and property developers.

Shares in these sectors fell sharply on Friday.

The CBI is also looking into the involvement of fund managers and senior officials at state-run insurance companies in all deals arranged by Money Matters Financial Services, the firm cited as the mediator on the deals.

The CBI is also probing all block deals, bulk deals and share placements arranged by Money Matters, a source with direct knowledge of the matter told Reuters.

Bond and rupee markets in one of the world's fastest growing emerging economies remained unaffected as traders did not view it as a risk to the banking system.

Analysts said the scandal, coming just a few days after Singh defended his government in another case involving

mobile phone licences sold for below-market prices, could harm investor sentiment.

"If we can clearly say that we have done something right at this point in time and do proper things at this point in time then it's salvageable but otherwise it does have a potential to impact investor sentiments towards India from a medium-term perspective," Nitin Jain, Singapore-based principal of fund manager Kotak Mahindra.

Ratan Tata, one of India's most powerful businessmen, criticised the Indian government in a rare interview.

"I wish the government would take a stand, bring order...have an investigation, book people who are guilty of something," he said in an excerpt from an interview to be aired on Indian broadcaster NDTV on Saturday.

Investors so far remain keen to tap into a country with a young and fast-urbanising population of 1.2 billion.

Economic growth is forecast at 8.5 per cent in 2010-11, and between 9 and 10 per cent a year after that, rivalled only by China among major economies.

But repeated scandals in recent months have marked a change from the days when corruption and graft command little space or time on the country's top media outlets.

Analysts say this is due to the explosion of 24-hour television channels, a more assertive opposition and a growing middle class fed up with rampant graft throughout society.

"Notices have been sent to 21 companies. It includes big to medium size companies, including real estate companies," a CBI official, who did not want to be named, told Reuters.

"Preliminary evidence points to the fact that the case is limited to individuals. So fall-out is unlikely to be big."

Several leading Indian companies have acknowledged that they have been asked for information. Some were already named in court documents filed by the CBI on Wednesday and include the world's third largest wind turbine maker Suzlon Energy. Suzlon has denied any wrongdoing.

On Wednesday, federal agents arrested senior officials at state-run Central Bank of India, Punjab National Bank and Bank of India -- all major banks with operations across the country.

The CBI said the executives had received bribes from Money Matters.

Three senior Money Matters executives were also arrested on charges of handing out bribes.

Shares in real estate and energy sectors have fallen over the past few days on fears that a cash crunch could delay or derail major development projects, some key to India's ambitious infrastructure expansion goals.

India was ranked 87th in Transparency International's 2010 ranking of nations based on the perceived level of corruption. India lies behind rival China, which is in 78th place. Reuters

Insurers at KSE go good during last wk Staff Reporter KARACHI: Insurance stocks witnessed some positive activities last week at the Karachi Stock Exchange (KSE) with more than 10 million shares traded together in life and nonlife insurance stocks.

Pak Reinsurance was the volume leader with 4.37 million shares followed by Adamjee Insurance with 3.95 million shares.

Top gainers of the week include New Jubilee Life Insurance which increased by Rs4.86 to close at Rs47.85 and EFU Life Assurance which was up by Rs4.44 to close at Rs82.46 while Adamjee Insurance was down by Rs1.35 to close at Rs80.56 and Shaheen Insurance lost Rs1 to close at Rs13 to be the major losers of the week.

Funeral insurance officers held for fraud in US NEW YORK: Six officials of a company that sold prearranged funerals were indicted for allegedly diverting as much as $600 million in insurance policy money for personal use, federal authorities said on Tuesday.

Officials said National Prearranged Services Inc preyed on people who wanted to buy policies to insure against their relatives being stuck with funeral bills.

The indictment filed in US District Court accuses the company officials of fraud, embezzlement, money laundering and conspiracy. -Reuters

PUTRAJAYA: All employers in Malaysia must, from Jan. 1, 2011, take medical insurance for newly employed foreign workers, a Malaysian official said in Malaysia's federal administration center here.

For existing foreign workers, the employers must take the same insurance for them when renewing the workers' permits, Malaysian Health Minister Liow Tiong Lai told reporters after chairing the ministry's management meeting here on Thursday.

According to Liow, the annual insurance premium for each foreign worker is 120 ringgit (38.8 US dollars), and employers are free to engage any insurance company to provide the health coverage.

Currently, there are about two million legal foreign workers working mainly in the fields of construction, plantation and manufacturing, with most of them originating from Indonesia and several countries in South East Asia and South Asia.

Liow said to date, foreign workers were owing the Malaysian government hospitals as much as 18 million ringgit (5.82 million U. S. dollars),

and the figure was on the rise given the fact that the number of foreign workers was increasing.

This was because the workers only settled partial medical payment after enjoying the health services, explained Liow, adding that some did not even pay the hospitals.

The minister said that by making it mandatory for employers to take health insurance for their foreign workers, the Malaysian government's financial burden could be reduced.

Some medical personnel claimed that some foreign workers went to Malaysian government hospitals under the pretext of "buying" expensive medicines at very low prices, and "exported" the drugs to their hometowns.

As Malaysia strives to become a high-income developed nation by 2020, the Malaysian government is also trying hard to reduce the nation's dependence of foreign workers.

It is the Malaysian government's aim to cut the number of foreign workers in the country to 1.5 million by end of 2010.

NNI

Chesnara buys Save & Prosper LONDON: British insurancefocused takeover specialist Chesnara said it was buying the Save & Prosper Group for 63.5 million pounds ($100 million) to double its operations in Britain.

Chesnara, which competes with Phoenix Group to buy life insurers that no longer accept new customers, will partly fund the takeover, its fourth since being formed in 2004, from a share placing on Friday which raised 26.7 million pounds.

The balance will come from a 40 million pound bank loan.

Chesnara chief executive Graham Kettleborough told Reuters the company might bid for another "small" British insurer that will come up for sale soon, and was also on the lookout for opportunities in Western Europe.

The company, which last year bought Swedish life insurer Moderna, targets insurers and life insurance funds valued at

between 50 and 200 million pounds.

Chesnara is buying Save & Prosper, a unit of JP Morgan Asset Management, at a 31 per cent discount to its embedded value, an insurance industry valuation measure that includes the present value of future premiums from existing policies.

The acquisition will reinforce Chesnara's ability to pay dividends to shareholders, Kettleborough said.

Chesnara was advised on the Save & Prosper deal by Hawkpoint Partners, while Panmure Gordon and Collins Stewart are acting as lead underwriters in the share placing.

Chesnara also said it had traded in line with expectations since June 30.

Shares in the company were down 1.6 per cent at 207.5 pence at 1445 GMT, valuing the company at about 207 million pounds. -Reuters

Banks warned on loan-loss provisions WASHINGTON: Banks showed further signs of recovery in the third quarter, helped by the lowest level of loan-loss provisions since before the 2007-2009 financial crisis, but drew a warning from a top regulator not to go too far.

Federal Deposit Insurance Corp Chairman Sheila Bair said banks should not cut reserves too quickly given the fragile economy.

"Many institutions came into the recent crisis with inadequate reserve levels, and they need to exercise restraint in drawing them down now," she said.

Bair gave her quarterly assessment of the industry just before rushing off to attend only the second meting of a

new council of regulators designed to curb undue risktaking by financial institutions.

The Financial Stability Oversight Council (FSOC) took a step on Tuesday toward bolstering supervision of certain derivatives clearinghouses and giving them access to the Federal Reserve's emergency lending facilities.

A Treasury official also updated panel members on a regulatory investigation of foreclosure practices, with banks and other mortgage servicers under fire for sloppy documentation.

"The bulk of the examination work to date focused on the foreclosure process has found widespread and, in our judg-

ment, inexcusable breakdowns in the foreclosure process," said Michael Barr, assistant Treasury secretary for financial institutions.

The FDIC's quarterly report card on the banking industry's third quarter performance showed both profit growth, which was partly due to reduced loan-loss provisions, and an increasing divergence between the nation's megabanks and its smaller ones.

The FDIC reported aggregate industry earnings rose to $14.5 billion in the third quarter versus $2 billion a year earlier.

Profits would have been up sequentially from the second quarter, as well, if not for a massive charge-off recorded by

the industry's largest player, Bank of America.

The number of banks on the regulator's "problem list" hit its highest level since 1993, despite better loan performance, while loan-loss reserves fell for the first time since late 2006, mostly due to large banks' actions, the agency said.

"Bair's comments are aimed primarily at mid-sized and smaller banks that have yet to show consistent credit quality improvement. This supports our broad thesis that the very large banks are improving much faster than the rest of the industry," said MF Global financial services analyst Jaret Seiberg.

As head of the FDIC, Bair is a member of the new risk over-

sight council, an inter-agency panel of regulators created to keep an eye on precisely the sort of broad risk that might be posed by lower loan-loss reserves.

The council, set up under sweeping banking and Wall Street reforms enacted in July, met behind closed doors on Tuesday, then held a brief open session later in the day.

Almost four months since Democrats and President Barack Obama pushed through the reforms over the opposition of banks and Republicans, government regulators are consumed with the implementation of hundreds of new rules and regulations.

Industry lobbyists are moving

to soften the Dodd-Frank law at the implementation level, where Congress left reams of important details to be hammered out by federal authorities.

The FSOC is empowered to tag certain organisations as "systemically important" to the stability of the economy. Firms thus labeled must answer to stricter oversight.

The council last month began sketching out the criteria it will use for deciding which nonbank financial firms get named as "systemically important." It did the same on Tuesday for exchanges, clearinghouses and data repositories that are being set up for off-exchange derivatives trading.-Reuters

SKorea gets 11 bidders for $6bn Woori stake SEOUL: Eleven bidders, including a group led by Woori Finance Holdings, expressed interest in buying up to 57 per cent -- worth around $6 billion -- of South Korea's top financial services firm, the government said Friday.

The Woori auction drew surprisingly strong interest, allaying market concern the government may have to delay the sale of its stake again after potential bidder Hana Financial (086790.KS) pulled out of the race, opting to buy a $4.1 billion stake in Korea Exchange Bank on Thursday.

The Woori stake sale would mark the completion of South Korea's bank privatisation program after it injected billions of dollars of taxpayers' money to bail out financial firms in the wake of the Asian financial crisis in the late 1990s.

Korea poured 12.8 trillion won ($11.2 billion) into Woori to recapitalise it and has recovered less than half of the money.

Woori, hoping to stand on its own feet and avoid being merged with a rival, formed a consortium led by its employees who committed 900 billion won, the group said in a statement.

It had also lined up investors including steelmaker POSCO , telecoms operator KT Corp and the National Pension Service, a source familiar with the matter said earlier, declining to be identified because of the sensitivity of the issue.

The Korea Deposit Insurance Corp (KDIC), the top shareholder of Woori, declined to reveal names of individual bidders.

Media reports said private equity firm Carlyle Group has also submitted interest for the Woori stake, while Affinity Equity Partners, the Korea-based MBK Partners and Vogo Fund were also bidders for Woori.

Online news outlet MoneyToday reported Macquarie Group and MetLife Inc joined in the bidding as strategic investors.

Carlyle, Affinity, Macquarie and Metlife were not available for comment, while MBK and Vogo declined to comment.

A government official involved in the deal refused to comment, citing the confidentiality.

Industrial and Commercial Bank of China submitted its letter of intent for a regional banking unit of Woori that is also on sale, local media said.

The auction, which requires bidders to buy at least 4 per cent of Woori or merge with it, comes a day after smaller rival Hana agreed to snap up 51 per cent of KEB from Lone Star LS.UL in Korea's biggest bank acquisition.

The government plans to pick a preferred bidder for Woori by March and finalise the deal by June.

KDIC created Woori in April 2001 by merging banks that received public funds in the wake of the Asian financial crisis, and has sold 43 per cent of Woori shares in a series of sales beginning in June 2002.

It is also selling two regional banking arms of Woori -Kwangju Bank and Kyungnam Bank -- and said on Friday it has received interest from 12 bidders for the regional banks. -Reuters

Gottwald of Austria celebrates after he won the FIS World Cup Nordic Combined in Ruka, Kuusamo

09

Monday, November 29, 2010

Everton keen to lure Beckham back LONDON: Everton have offered former England captain David Beckham a chance to return to the Premier League on a short-term loan from the Los Angeles Galaxy during Major League Soccer's close season.

"If would hope that if David wanted to come he would pick up the phone and call me," said Moyes, who is still hoping to re-sign Beckham's Galaxy team mate Landon Donovan on a second three month loan deal.

"I know him and if David Beckham wanted to come back to the Premier League, he would only need to call me or Phil. We would be here for him at Everton."

Moyes, whose side are 14th in the league after a slow start to the season, played with Beckham when the future Manchester United player was on loan at Preston North End in 1995.

Beckham has spent his last two winter breaks on loan to AC Milan in Italy.

The Londoner, who has 115 England caps, was ruled out of his country's World Cup campaign in South Africa this year by an Achilles tendon injury and returned to action for the Galaxy in September.

He said in October that he would not have any more loan deals, given the injury he picked up last time, although he still believes he has an England future. His Galaxy contract expires at the end of 2011.-Reuters

CHINA HITS GOLDMINE AT AGAMES GUANGZHOU: China's women volleyballers clinched the last gold medal at the Guangzhou Asian Games on Saturday as organisers prepared to say farewell to nearly 10,000 athletes under a tight security blanket.

Having already smashed through their 183 gold record at the 1990 Games, the hosts were determined to end the party just as they had begun it, with a relentless march to the podium accompanied by ecstatic cheers from home fans.

Two weeks after Chinese Wushu fighter Yuan Xiaochao snatched the first gold of the Games, China's women came back from a two-set deficit to sink South Korea in the volleyball final.

The title brought the hosts their 199th gold medal, but delegation chiefs said there was still work to be done.

"Although we have a relatively large amount of gold medals, only a few attained world standards and most of them lacked the competitive standard of the Olympics," deputy chef de mission Duan Shijie told reporters.

"The situation in the lead-up to the London Olympics is grim and we can not rest on our laurels."

Security forces were also on high alert in the centre of Guangzhou, with roads closed off and scores of police gathering at residential compounds near Haixinsha island, the venue of both the opening and closing ceremonies.

"We just wanted to see the venue, but the police and vol-

unteers would not allow visitors," said Pang Bin, a retired 57-year-old, touring Guangzhou with his wife. "So disappointed."

Guangzhou organisers have promised another visual spectacular to say goodbye to the 45 delegations that have participated in the mammoth programme of 42 sports.

LION DANCE Athletes arrived at the waterthemed opening ceremony on a flotilla of boats down the Pearl River, but on Saturday they will walk into a glimmering opera house to be entertained by folk and a traditional lion dance.

South Korean pop-singer Rain was also scheduled to perform as part of the handover ceremony for the Games next hosts, Incheon in 2014.

Earlier, Zhou Chunxiu gave China gold in the women's marathon, ahead of team mate Zhu Xiaolin.

The battle for medals in the men's marathon was more heated with gold medallist Ji Young-jun of South Korea and Kenya-born Mubarak Shami of Qatar sniping at each other for a large part of the race.

After Ji ran into Shami's heels, the hot-tempered Qatari cuffed the South Korean on his shoulder and scolded him angrily. "It really upset me ...

But I don't think he meant to do it," Shami said.

BEST FOR LAST Military-ruled Myanmar saved their best for last by winning their only two gold medals on the last day in the men's and women's doubles

GUANGZHOU: Fireworks explode during the closing ceremony of the 16th Asian Games.-Reuters sepak takraw.

The tight victory over South Korea in the men's final proved too dramatic for team leader Nyan Htun who fainted and was sent to hospital on a stretcher.

"He was shocked ... and just collapsed," head coach Kyaw Zin Moe told Reuters as medics checked his vital signs.

While China's athletes dominated, Japan lost their battle for runner-up bragging rights to

South Korea, who managed 76 golds to their rivals' 48 and cut into Japan's traditional strongholds of judo, wrestling and swimming.

"Our results are not good and this is Japan's sporting level in Asia right now. It's painful but we have to recognise that," Japan chef de mission Noriyuki Ichihara said.

Organisers basked in the glow of praise from Olympic Council of Asia president

Sheikh Ahmad Al-Fahad AlSabah who described the Games as "extraordinary," despite earlier rapping officials over half-full venues and excessive security measures.

"This is the best Games now.

And at Doha I was saying that it was the best Games. And I hope that at Incheon we'll say it was the best Games," Sheikh Ahmad told Reuters as he was ushered into a courtesy car.

The OCA President also

praised North and South Korean athletes who battled tooth and nail for titles ranging from wrestling to archery amid the worst military flare-up between war-time foes in decades.

"We are very sorry for what is happening between the two Koreas. Here we are sports people and the athletes have participated shoulder to shoulder without any problems in our Asian Games," he said.Reuters

Going for Wimbledonian Gild LONDON: With six Wimbledon trophies already packed on to his mantelpiece, Roger Federer would like nothing more than to win a singles gold medal on the hallowed turf when it hosts the Olympic tennis event in 2012.

The 16-times grand slam champion has stockpiled so many records in his decadelong career that a couple of rainforests have probably been chopped down to produce the paper needed to print them all.

But there is one more chapter he would dearly love to add to his memoirs -- winning an Olympic singles title.

Dressed in a dapper navy suit and tie, Federer settled into a well-worn leather armchair in the corridor of a plush London hotel to have a chat with Reuters about how much winning the gold will mean to him and how Wimbledon will finally put tennis at the forefront of the Olympics.

Q: Roger, for all your grand slam wins and records, the one glaring omission in your impressive resume is the Olympic singles gold. How much of a priority is it to win it in 2012, especially since it's being held at Wimbledon?

FEDERER: "The beauty of it being at Wimbledon is huge for the world of tennis. At the Olympics, the focus is on swimming and athletics and tennis has been forgotten a little bit.

"At the last couple of Olympics, we've seen the best players are always playing.

Rafa (Nadal) winning the singles in Beijing, me winning the doubles over there, that was great news for tennis in an Olympic spirit.

"I've now carried the flag twice, in Beijing and Athens, and it's always been a dream for me to play for my country and to win an Olympic gold. I already have one but still, the special part of having it at Wimbledon will be amazing."

Q: Do you think that will be your last chance to win the

Olympic singles title or do you plan to stick around for 2016 in Brazil?

FEDERER: "I will be 35 in 2016. I haven't thought that far yet and I don't even know what surface they'll play it on, whether it's going to be clay or hard court. I hope in some ways, it's (2012) not my last just because I like to play for so long. For an Olympics, I definitely could get up for that, no problem."

Q: For you personally, what is the main attraction of the London Games? The fact that it's at Wimbledon or that after playing three Olympics on hardcourts, this one will be on grass?

FEDERER: "The grass is one part, it being at the Holy Grail of tennis is the second one. London, if you see how successful this World Tour Finals is, how successful Wimbledon is, how much tennis is liked in this country -- all these things make this a very very special place to play tennis."

Q: At the last two Olympics, you were favourite to win the singles gold. How much does it hurt that you were unable to fulfil this?

FEDERER: "It's somewhat surprising. In 2000 I had no expectations and I played the semis and missed out on a potential gold. Then missed out on the bronze by losing the bronze medal match too. I couldn't believe how close I was all of a sudden from a medal at the Olympics.

"Athens was disappointing because in '04 I won three majors, I played great. I didn't really play a bad match. It was just really quick conditions, I played (Tomas) Berdych who also loves quick (conditions) and who I didn't know back then yet.

"I was caught by surprise by a good, young player who had nothing to lose. It was a tough loss for me... more than maybe Beijing because there I felt my game was not 100 percent on. I

ended up losing to James Blake, who I had never lost to before.

"It was a disappointment as well. Especially as expectations grew more and more from Switzerland because we don't win 50 medals at an Olympics, so they were hoping that I would definitely get a medal.

"But then I was so happy to have won the doubles there (in Beijing) because that came completely as a surprise and

Olympic spirit and everything it stands for. I like being there.

"I couldn't choose (which one was more memorable) but obviously Mirka is long-lasting, I've had 10 incredible years with her, I've two beautiful kids with her so I guess that's my number one pick."

Q: A lot of top players often tend to skip the Olympics, will holding it at Wimbledon change that?

FEDERER: "It being in

was more on the athletics and (in tennis) many of the top guys lost early so it never really caught fire.

"In Beijing, everything was huge as they were waiting for that for years and years. In London, with the heritage we have for tennis through Wimbledon, it's probably going to be the biggest tennis Olympics we're going to have."

Q: Do you think the atmosphere will be different than

that was why the joy was so big."

Q: Which is your most memorable Olympic memory -meeting your wife Mirka during the 2000 Games or winning the doubles gold in Beijing?

FEDERER: "Ha ha. That's why I've had very emotional Olympics. Meeting Mirka in Sydney, carrying the flag in Athens for the first time, then carrying the flag in Beijing on my birthday on the 8th of August and then winning the gold.

"I've always had something special happening at all the Olympics. It's changed how other athletes look at me today at the Olympics. I can barely do the opening ceremonies as they (other athletes) eat me up as I wait inside. I'm happy to go through with it because for me it's a dream to be a part of the

London will help the cause. We don't have to travel an extra thousands of miles to get to the venue as we travel enough.

Before you had some guys who did not like playing on grass at all so they would just skip it.

But now it's different.

Everybody today plays on grass. For raising awareness for tennis at the Olympic Games, I think London is going to be the perfect place."

Q: A lot of people have questioned the inclusion of tennis in the Olympics and usually it is not as high profile as say athletics or swimming. Do you think staging it at Wimbledon will give it more prominence in 2012?

FEDERER: "I'm sure it will.

I think this is going to be the biggest focus on tennis at an Olympics. Because swimming is huge in Australia, in Athens it

playing during the Wimbledon fortnight?

FEDERER: "Possibly. I'm looking forward to it and I hope it's going to be somewhat different.

Different is good because changes are nice. I heard we might even be playing in colour (clothes) at Wimbledon which is going to be so unusual.

"For me it's going to be extra special as hopefully my kids can come and see a match for the first time at an Olympics.

My parents will be able to show up for the first time at an Olympics because they didn't do the trip to Sydney, Athens or Beijing and that's going to be a huge difference for me. I like having my family around, especially for something so emotional."

Q: What are you plans for the summer of 2012? Will you stay

in England from Wimbledon through to the Olympics since there is only a three-week gap between the two?

FEDERER: "I haven't planned that far ahead but I might go back and come back just because I can as Switzerland is so close. It's a good schedule for most of the players. I doubt I will play a tournament in between.

"I don't even know if I'm going to stay at the Olympic Village yet or even Wimbledon Village. I stayed twice in the (athlete's) village, in Sydney and Athens, but I tried the hotel in Beijing just because that's what I'm used to most and it kind of worked. So we'll see what I'll do."

Q: What's your programme like at the Olympics? Do you have time to watch other sports and socialise with other athletes?

FEDERER: "I tried to. I went to watch swimming and badminton in Australia with Mirka even though we weren't together yet but we just went.

That's been the disappointing part for me really because I don't remember going in Athens and Beijing to see any other sports because we didn't have any time.

"Hours are very cramped because we play singles and doubles. I think there's even mixed (doubles) now in 2012. I don't know who finds time to do it.

"Now it could be slightly different because if we are there three weeks earlier, we just stay there.

Usually we come in early enough but just not early enough to go see the other sports. That something that could change for 2012 and I'm looking forward to it."

Q: It will be your first Olympics as a father. How do you think that having your twin daughters, who will be three by then, impact things?

FEDERER: "It's going to inspire me more. Then they will understand more and more

about tennis. They have no clue obviously at the moment but they understand when daddy goes and plays and has the headband on on TV, they recognise me and that's great.

"I can only imagine in two years how different that's going to be. If they can join me and even sit on the stands for one of the games that's going to be great."

Q: One of your most memorable celebrations was when you won the gold in Beijing with your doubles partner Stanislas Wawrinka. He was lying on his back while you were comically hovering your hands over him. What kind of celebration can we expect if you win singles gold on the most famous Centre Court?

FEDERER: "Oh God, I'll be alone on the court so nothing crazy.

I hope it happens, I'll be ready to do anything then. I think it was funny thing to do back in Beijing‌ but there's nothing in the plans as it's so far away."

Q: Now that you are friends with Queen Elizabeth after meeting her at Wimbledon this year, have you dreamt about her putting that gold around your neck in 2012?

FEDERER: "Ha ha, no, no, I haven't. It was nice going through a medal ceremony (in Beijing) with the national anthem. It was beautiful and one of the more emotional moments of my career. Sure, I'd love to go through it again. At that point I almost don't care who gives me the medal as long as I would get it.

"Because it's so unusual for us to hear our national anthem, when you win (and you do hear it), I think it's a moment of calm. A moment where you can have pictures go through your mind again, what just all happened -- the last couple of days, hours, weeks and all the effort you put into it. It's a great feeling and I hope it happens again."-Reuters

10

Analysis & Feature

Monday, November 29, 2010

FRENCH G20 AGENDA TO PUSH BIGGER YUAN ROLE * SARKOZY HAS RECEPTIVE AUDIENCE AS G20 PRESIDENCY BEGINS * FRANCE, CHINA BOTH KEEN TO INTERNATIONALISE THE YUAN * LATEST US QUANTITATIVE EASING STRENGTHENS FRANCE'S CASE * TECHNICAL, POLITICAL OBSTACLES TO EXPANDED USE OF SDRS

W

eaning the global monetary system off its reliance on the dollar has eluded policy makers for decades, but the wind may now be blowing in France's favour as it seeks to build a consensus for change.

Finding ways to diversify countries' international reserves away from the US currency is a key part of French President Nicolas Sarkozy's plan to sketch out a blueprint for a more stable monetary system during France's year-long presidency of the Group of 20 nations, which began this month.

In the wake of the 2008-09 global financial crisis, France, which has long argued dollar volatility damages European economies, is finding common cause with emerging powers such as China and Brazil.

"The time may have finally come because it's not just France thinking about this: the dollar is becoming destabilising for a lot of countries," said DeAnne Julius, chairman of London's Chatham House institute of international affairs. "France has a good chance of making significant progress."

French officials say their agenda hinges on convincing the Chinese, whom Sarkozy has assiduously courted, to agree to a greater role for the yuan as a reserve currency.

This would initially be done by having the yuan enter the Special Drawing Right, an International Monetary Fund accounting tool currently based on the values of the dollar, euro, yen and sterling.

China's central bank chief proposed last year that the SDR be turned into an international currency based on John Maynard Keynes' 1944 idea of a "Bancor". The idea won

backing from Brazil at a G20 summit meeting last month.

No one expects a "big bang" move to a supranational currency; the shift away from the dollar would take many years, possibly decades. But France wants to revive the debate on the role of the SDR as part of a gradual move toward a multipolar currency system.

"There are some concrete things we can do," said a senior French official. "For example, what timeframe do we set for the renminbi to enter the SDR? Next year? In 10 years?

This is something we can decide. The Chinese are ready to discuss this."

ANXIETY IN BEIJING The US Federal Reserve's decision this month to conduct more quantitative easing, effectively printing money to buy government debt, was strongly criticised as destabilising by many governments and may well have strengthened France's case.

In particular, the US decision fanned anxiety in Beijing -which has some two-thirds of its $2.65 trillion foreign reserves in the US currency -that the dollar is no longer a stable store of value.

Wading into the debate on how to improve the global monetary order, Chinese President Hu Jintao called at a Seoul G20 summit this month for "an international reserve currency system with stable value, rule-based issuance and manageable supply".

Amid fears that tensions between Washington and Beijing might provoke a "currency war", in which governments would battle each other to influence exchange rates to their advantage, the Seoul summit asked France's presidency to develop "indicative guidelines" to measure if coun-

tries had excessive current account surpluses or deficits.

"This is more useful politically than economically, because it helps take the pressure off the currency issue," Julius said.

China, with its attention gripped by domestic inflation, has allowed its currency to appreciate modestly in the last few months while angrily rejecting pressure from Washington to quicken the pace.

Beijing has already taken steps to internationalise the yuan, allowing trade to be settled in yuan and permitting this money to be reinvested in its domestic bond market, as well as establishing renmimbi swap lines with several central banks.

It says it aims to build Shanghai into an international financial centre by 2020, implying the yuan will be fully convertible by then. But including the yuan in the SDR could encourage Beijing to accelerate its capital account liberalisation, as Washington demands.

"The smart thing for the IMF to do would be to put the yuan in the SDR basket today," said Jim O'Neill, chairman of Goldman Sachs Asset Management. "Then the SDR would also have some obvious appeal to the private sector: this could quite rapidly open the door to less dependence on the dollar."

The SDR currently accounts for just 4 per cent of global reserves, or $308 billion. The four currencies which make up the SDR account for only 46 per cent of world trade, according to ING bank. As the world's largest exporter, China wants to be admitted.

A five-year review of the SDR basket completed this

month excluded the yuan again because it is not freely usable as a reserve currency and in trade, but the IMF said the issue would be kept under review. "I now feel more relaxed that the renminbi can be brought into the SDR before full capital account convertibility," Julius said, adding that a revision of the SDR over the next year might decide initially to set the yuan's weight at around 5 per cent.

"EXORBITANT PRIVILEGE" France, an architect of the euro, has a tradition of driving monetary change. In the 1960s, Charles de Gaulle's government slammed the dollar's "exorbitant privilege" as a reserve currency and pressured Washington to drop the dollar's link to gold by swapping dollars for tonnes of US bullion.

In Sarkozy and his charismatic Economy Minister

Christine Lagarde, France has a formidable negotiating team to press for change. In a visit to Paris this month, Hu agreed to Sarkozy's request for China to host a conference on monetary reform next spring.

"China supports the reform agenda in principle," said Wang Yong of Beijing University's Centre for International Political Economy. "But there's no sign China is willing to pay the price to confront the US on this if it strongly resists reform," he added.

A source close to French policy said it might be hard to get Washington, which remains the largest IMF shareholder and has a veto over key decisions, to let the yuan enter the SDR quickly as Washington would then lose an important bargaining chip with China.

In the longer term, plans to increase the role of the SDR as

a reserve currency face other problems.

Firstly, the system lacks liquidity and would need a massive issuance of SDRs, which creditor nations have traditionally resisted. However, the increased clout of emerging economies at the IMF, after this year's deal to give them more voting power in the body, might ease this process, which could be achieved via regular allocations set by the Fund.

Secondly, the private sector would need to be allowed to hold SDRs. This could be achieved by permitting commercial banks to open SDR accounts, by encouraging commodity producers to quote prices in SDRs, which would lessen volatility, and by mandating the IMF to set up a clearing system, Julius said.

Thirdly, the reform would require the IMF to play a far greater role as the world's

"central bank" administering global reserves. Supporters of change argue this could have the benefit of encouraging emerging countries to lower their high levels of reserves, which bring no economic benefit to their populations.

It is not clear, however, whether events will permit France to focus consistently enough on the SDR at G20 meetings to lay the base for significant reform. If an international bailout of Ireland fails to halt the contagion spreading through the European debt market, France's G20 agenda could be hijacked. "If the euro zone crisis doesn't calm down, everyone will be in emergency mode. Questions of global imbalances and monetary reform will be overtaken by more pressing issues," said Deutsche Bank's senior European economist Gilles Moec. -Reuters

Ireland's difficulty is Sinn Fein's opportunity I

reland's nationalist Sinn Fein party is having a good crisis.

Once the political wing of the now-dormant Irish Republican Army (IRA), the party won a fifth seat in Dublin's parliament at the expense of the government on Friday after its anti-austerity rhetoric struck a chord with the people of county Donegal.

Known internationally for its campaign against British rule during decades of violence in Northern Ireland, the leftwing party is picking up momentum south of the border amid public anger at a financial meltdown that has forced one of Europe's former economic stars into the arms of the IMF and EU. An opinion poll showed it could pick up a record 12 seats in the nextgeneral election in the Republic, likely early next year, making it the second-

largest opposition party in Dublin's parliament after Cowen'sFianna Fail are pushed from power.

Not bad for an organisation whose members were officially banned from speaking on Irish media until 1993.

"I'm around long enough to know that you don't judge the mood of the country on what happens in one by-election but I do think we are going to see a changed political landscape at the next general election," Sinn Fein's Martin McGuinness, former IRA commander, now deputy first minister in Northern Ireland, told Reuters.

"I think Sinn Fein are going to be very much at the heart of that."

Once viewed as a pariah both north and south of the border, Sinn Fein has swapped the Armalite rifle for the ballot box and now runs Northern

Ireland in partnership with its former foes.

Its electoral track record in the Republic has been less stellar. Despite predictions that it would double its representation, Sinn Feinlost one seat at the last parliamentary poll in 2007, when Ireland's property boom was still in full swing.

VIOLENT PAST Now, two years into a sixyear cycle of swingeing tax hikes and spending cuts, and with the worst recession in the industrialised world under their belt, some Irish people are taking a second look atSinn Fein's leftwing views.

The party has long argued that banks should be nationalised and bondholders burned.

Some of those policies may well materialise under an IMF/EU bailout, expected to leave the state in control of three of the country's top banks

and possibly offer loss-making swaps to some bondholders.

Sinn Fein is the only party to call for delaying a 2014 deadline for getting the deficit under control to allow more economic growth. The view was endorsed by the country's most prestigious economic think-tank earlier this month.

An IMF/EU rescue package is likely to deal a killer blow at the next election to Fianna Fail, which has dominated Irish politics during the 90 years since it won independence.

The loss of sovereignty implied by accepting a bailout is humiliating for a country

where politics are still cast in terms of the struggle against British colonial rule. It is a particular loss of face for Fianna Fail, which sees itself as the embodiment of Irish nationalism.

Keen to capitalise on the mood in the south, Sinn Fein's PresidentGerry Adams has said he will contest the Republic's next election. He is not taking any chances, standing in a safe seat in the border county of Louth.

"I don't think he resonates terribly well in the south.

There is a history, there is a baggage and ultimately he is not seen as part of the system we have here," said David Farrell, professor of politics at University College Dublin.

Under Ireland's political system of proportional representation, Sinn Fein needs to attract vote transfers from sup-

porters of other parties, and their history of being associated with violence may cap their gains.

Donegal, where Sinn Fein's candidate trounced a Fianna Fail member for a vacant seat on Friday, borders Northern Ireland and its voters would have a soft spot for nationalist parties that is unlikely to translate to many other areas.

Three of Sinn Fein's five MPs are based in border counties and the party may struggle to win support among middleclass voters wary of their violent roots and anti-EU stance.

"I would hate to see Sinn Fein have any power at all. I don't support them and I don't know anyone who does. They are a subversive party, it would be anarchy if they got in," said Dubliner Donal Neeson, 50, who works in financial services. -Reuters

Markets far from expecting euro zone break-up L

istening to some -- primarily Anglo-Saxon -- commentators, one gets the impression that the euro zone risks collapsing under the weight of debt in its weaker economies.

Analysts are discussing the idea that economic differences between countries may be too wide for the zone to survive, and that it may have to break itself up.

Markets themselves, however, are telling a different story. Individual financial instruments, such as sovereign bonds and bank debt in the weakest countries, have been hit hard by default fears. But movements in most markets show most investors do not think the euro zone faces the dangerous and expensive prospect of a break-up.

Indeed, correlations between markets suggest investors are not nearly

as afraid of a systemic crisis in the zone as they were back in May and June, when the panic over Greece's debt problems was as its height.

Consider the euro itself. Although yields on Portuguese and Spanish 10year debt are at record highs near 7 per cent and 5 per cent, and Ireland is negotiating an international bailout, the currency has not reacted strongly.

The 30-day correlation between the euro/dollar exchange rate and the spread of the 10-year Greek government bond yield over German Bunds -- the risk premium which investors demand to hold Greek bonds -- was minus 0.65 in June but is currently minus 0.19.

Minus 0.65 is a fairly strong negative correlation -- heading towards the limit of minus 1.0 -- and shows investors sold the euro heavily in June

because of fears of a Greek debt default. By contrast, there is now very little correlation between the euro and expectations for Greek debt.

For Ireland, the correlation has moved from minus 0.61 to minus 0.29. Also, the euro remains strong historically. At around $1.32 and despite a roughly 7 per cent fall over the past three weeks, it is still close to 13 per cent stronger that it was at the depth of the Greek crisis. It is far above its lifetime average of $1.188, and above its average for the past 200 days, which is a key level for currency traders and is now at $1.3131.

Nor does market positioning imply fears of a currency zone break-up. The latest Commodity Futures Trading Commission figures actually show a small net long position in the euro.

These are figures for the week to

Nov. 16, and the next set of data, normally released on Fridays, may show a shift. But the reaction in the currency options market to the Irish crisis has been tame.

According to IFR, implied volatility levels for the euro are still well below those seen in May and June. Implied one-month vol hit a high of 18.75 per cent in late May and 12-month vol reached a peak of 15.1 per cent. The equivalent figures now are near 14 per cent, a level that suggests some concern but not a huge amount.

In the meantime, there has been demand for euro "puts" -- options which provide the right to sell the euro at a given price. This suggests expectations for further euro weakness. But the 1.65 per cent premium currently demanded over "calls", the right to buy, is much cheaper than the 3.0 per

cent seen in June.

It is a similar story on European stock markets, where most companies are being buoyed by signs of surprisingly robust German growth and general improvement in the euro zone, as well as healthy corporate cash balances.

The EuroStoxx index, a broad gauge of euro zone equities, is about 9 per cent higher than it was in early June despite falls in the past few weeks.

Correlations between the index and bond spreads also show that while they are not insignificant, the euro zone bond crises are not overwhelming equities. The 30-day correlation with changes in bond spreads is now minus 0.38 for Greece and minus 0.36 for Ireland. In May, the Greek correlation was minus 0.86.

While the prices of bonds issued by Irish and some other banks have tumbled, the euro zone corporate debt market remains fairly healthy. The iTraxx Europe index for investment grade euro zone debt is at 111 basis points compared with 141 bps in June; a lower number implies more risk appetite. The iTraxx Crossover index of more risky corporate "junk" bonds is at 494 bps, down from 633 bps in June.

There are at least two major reasons for the easing of markets' fears about the euro zone as a whole since June.

One is that the European Union has set up a formal mechanism to handle debt crises, the 440 billion euro European Financial Stability Facility (EFSF), and the Irish bailout now underway shows the EU is willing and able to use it. -Reuters

11

International & Continuation

Monday, November 29, 2010

Ivory Coast goes to tense presidential vote

TAEAN: A South Korean army soldier walks near a barbed wire fence during an exercise before a marines landing drill at Mallipo beach.-Reuters

NK “readies missiles�, Beijing seeks talks

Egypt vote seen cutting Islamist parliament seats CAIRO: Egyptians voted on Sunday in a parliamentary election that is widely expected to deal a setback to the government's main rival, the Islamist Muslim Brotherhood.

The Brotherhood is targeting 30 percent of the lower house where it won a fifth of seats in 2005 -- its best result -- but analysts say the government wants to squeeze its most vocal critic out of parliament before a presidential vote in 2011.

The results are unlikely to surprise. President Hosni Mubarak's National Democratic Party (NDP) always deals a crushing defeat to rivals. Many voters see no point voting.

"I won't vote. I don't approve of this regime. Whoever I vote for, the government will put in who they want," said Shehta, 42, who worked in publishing before driving a taxi. He did not want his full name used.

The opposition and rights groups said on Sunday morning that the authorities blocked many monitors entering polling stations. The government has rejected calls by ally and big aid donor the United States for international monitors.

The two-round election in which 508 seats are at stake, with 10 more appointed by the president, may offer a foretaste of how the government conducts next year's presidential vote. Mubarak, in power since 1981, has not said if he will run again.

The government says voting will be free and fair. Critics say the NDP hogs the media, hands out gifts and pressures voters at polling stations.

Voting began at 8 a.m. (0600 GMT) and ends at 7 p.m.

(1700). The run-off will take place on Dec. 5 for districts where no candidate won more than 50 percent in the first leg.

Almost an hour after polls were due to open, about 20 voters were still waiting outside Qassem Amin polling station in the Nile Delta city of Tanta.

"The station should have opened already. I like to vote in the morning when things are still quiet. If we wait any longer, you may end up getting caught in the middle of violence," said Wagdy Mohamed Abdullah, 48, a teacher.

Violence is a common feature of Egyptian elections. In 2005, rights groups and observers said security

blocked many backers of the Brotherhood and other opposition groups from entering polling stations to vote, which led to clashes.

Four people have already been killed and 30 wounded in violence leading up the vote, according to the Egyptian Organisation for Human Rights. Fourteen people were killed during the 2005 poll.

The government blames election-related violence on rivalry between candidates and clan loyalties. The Interior Minister has pledged to deal with anyone behind such violence.

The NDP says the electorate hands it big majorities because it is the natural party of government and voters approve policies which have brought years of strong economic growth.

The party is fielding far more candidates than there are seats available in an effort to crowd out the Brotherhood.

The government wants a high turnout to give legitimacy to the vote. The official turnout in the last lower house elections in 2005 was 22 percent, although rights groups said it was no more than 12 percent.-Reuters

YEONPYEONG: North Korea has placed surface-tosurface missiles on launch pads in the Yellow Sea, Yonhap news agency said, as the United States and South Korea began military drills and China called for emergency talks.

China made clear that the talks would not amount to a resumption of six-party disarmament discussions which North Korea walked out of two years ago and declared dead.

South Korea said it would carefully consider China's suggestion.

South Korean President Lee Myung-bak had told a visiting Chinese delegation that Beijing, North Korea's only major ally which is traditionally reluctant to criticise the reclusive regime, should do more to help.

China, which agreed with South Korea that the situation was "worrisome", suggested the emergency talks for December among North and South Korea, host China, the United States, Japan andRussia.

Japan was non-committal.

"We want to respond cautiously while cooperating closely with South Korea and the United States," Kyodo news agency quoted Deputy Chief Cabinet Secretary Tetsuro Fukuyama as saying.-Reuters

ABIDJAN: Polls opened in Ivory Coast on Sunday for a presidential election run-off with fears of violence marring hopes that the vote will draw a line under a decade of political crisis and economic stagnation.

Incumbent President Laurent Gbagbo, a former history professor, faces Alassane Ouattara, a former prime minister and senior IMFofficial, in a race that is too close to call and has rekindled simmering tensions in the divided country, the world's top cocoa grower.

An overnight curfew, announced by Gbagbo earlier in the week, ended an hour before polls opened at 0700 GMT and appeared to have led to delays and a lower early turnout in many polling stations in the capital.

But in Bouake, in the north of the country that was seized during a 2002-3 war by rebels who still run the administration, the curfew was ignored and polls opened on time.

"I came to vote so we can head towards peace," said Diallo Aicha, who voted early in the northern town.

Gbagbo and Ouattara won 38 and 32 percent of the first round vote respectively. The race to secure the presidency has brought back to the fore a

north-south divide that was at the heart of the war and subsequent delays in holding polls.

"The stakes are very high.

The first round was very good. (But) we have seen some radicalisation," said Gilles Yabi, an independent political analyst.

After talks on Saturday with Blaise Compaore, Burkina Faso's president and the mediator in the Ivorian crisis, both candidates reiterated a vow to accept the results.

But supporters on both sides have a history of taking to the streets for their demands. "I'm afraid we can expect some degree of violence," Yabi said.

At least three people were shot dead by police in the main city ofAbidjan on Saturday, a local official said.

VOTE-RIGGING FEAR Gbagbo's army chief said on Saturday the curfew would run until Wednesday to help stop further loss of life from clashes that have killed at least seven people in all.

But opposition parties have rejected the curfew, which Gbagbo's rivals fear will be used to rig the vote.

During talks late on Saturday the election commission also expressed its concern, calling on Gbagbo

to ease security measures as they risked having an impact on voting.

Compaore said there had been talks to soften the measures but gave no further details.

A successful poll should pave the way for reforms to help an ailing cocoa sector and lead to further investment in a nation that was once West Africa's brightest prospect but whose economy has been weighed down by years of political uncertainty.

Violence following the poll would affect the delivery of cocoa to the country's two main ports.

Ouattara has secured the support of Hennri Konan Bedie, who came third in the first round with 25 percent.

But doubts remain over whether enough of Bedie's predominantly southern supporters are ready to throw their weight behind Ouattara, who is from the north and has been accused of backing the rebellion.

Voting will also be closely watched by holders of Ivory Coast's $2.3 billion Eurobond, which traded below 10 percent for the first time following the peaceful first round but has crept back up to around 10.3 percent.Reuters

BP to sell Pan American stake to Bridas for $7bn LONDON: BP said it had agreed to sell its stake in Argentina-based oil and gas group Pan American Energy (PAE) toBridas Corp, halfowned by China's CNOOC, for $7 billion, as it raises cash to pay for the Gulf oil spill.

The planned sale of the 60 percent interest, which sources previously said was under discussion and which was for a price in line with analysts' estimates, brings to $21 billion the amount that BP has raised, or agreed sales on, in recent months.

BP has said it expects the costs of the Gulf of Mexico oil spill -- theUnited States' worst ever -- to hit $40 billion and said it would sell assets worth $25-$30 billion by the end of next year to pay for it.

Bridas already owns a 40 percent stake in Pan American Energy, which BP said was Argentina's secondlargest producer of oil and gas.

Bridas was owned entirely by the family of Argentine tycoon Carlos Bulgheroni until CNOOC agreed to buy a

50 percent stake for $3.1 billion in March.

The 60 percent stake BP is selling represents reserves of 917 million barrels of oil equivalent (boe) and production of 143,000 boe per day.

The transaction excludes the shares of Pan American's Bolivian unit, BP said.

U.S. oil major Exxon Mobil Corp is seeking to sell its Argentine unit Esso, which controls hundreds of service stations and a refinery, local daily El Cronista reported last month.-Reuters

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Colombo on reciprocal basis and urged the Sri Lankan leadership to give it a serious thought as a vehicle to improve the trade and commerce between the two counties.

During the meetings President Zardari also invited Sri Lankan Parliamentarians, Buddhist monks, traders, intellectuals and political leaders to visit Pakistan to cement the ties.

Pakistan will participate in the exhibition next year in Kandy in Sri Lanka of Gandhara civilisation be sending Gandhara artifacts and relics of the Buddhist civilization for display at the exhibition.

Defence cooperation also figured in the talks with the two sides agreeing to take it to continue it on a sustained basis but the emphasis was kept focused on enhancing economic and trade relations between the tow countries.

The President also congratulated the Sri Lankan leaders on defeating militancy and terrorism and said that Pakistan too was determined to fight and defeat the menace.

During the delegation level talks the Sri Lankan President said that the people and government of Pakistan had extended solid support to the Sri Lankan people it their fight against militancy and insurgency adding that "Sri Lanka will never forget that support". He said that Sri Lanka sincerely hoped that Pakistan to will soon defeat the militants and recover in near future from the after effects of militancy.

Foreign Minister Shah Mahmood Qureshi, Defence Minister Chaudhry Ahmad Mukhtar and Chairman Board of Investment Saleem Mandviwalla, besides senior government officials of the ministries of Foreign Affairs and Commerce, were present during the meetings. -Agencies

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wreckage of the plane scattered in over half a kilometre area.

Commander Salman Ali said that there was no loss of life on the ground. The fire was brought under control.

He said that the battalion of Pakistan Navy cordoned off the area. The electric supply of the residential area was cut off as a precautionary measure to prevent any fire.

Meanwhile, Civil Aviation Authority (CAA) has started a probe into the Sunday's cargo plane crash.

Air Commodore Khwaja, head of the CAA investigation board, visited the site of crash on Sunday morning.

Talking to the media representatives, Khwaja said the plane had crashed in the air and two of its engines were shut at the time of crash. The Black Box and Voice Recording System of the aircraft were yet to be found, he confirmed. He said the plane crashed in highly protected area and there was, therefore, no possibility of evidences pertinent to investigation being lost.

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According to finance ministry sources summary has been sent to prime minister for appointment of Farrukh Hassan Khan as chairman SECP. Finance Minister Dr Abdul Hafiz Sheikh has recommended Farrukh Hassan Khan to be appointed as chairman.

Three commissioners are appointed in SECP at present and two among them would complete their service period during the current month. While Tahir Mehmood, commissioner law division had been appointed as commissioner for three years during the month of October. Overall 7 commissioners have been appointed in SECP while it was mandatory that minimum 3 commissioners be appointed.

During the last several years, strength of commissioners has not be increased while a crisis is feared to surface following the retirement of chairman SECP Suleman Ali Sheikh and Tariq Asif Hussain. It may be recalled that commissioner Tariq Asif Hussain had sent application to prime minister against Suleman Ali Sheikh chairman for misusing the powers. Prime Minister had constituted committee led by secretary establishment Ismail Qureshi to probe into matter but no meeting of the committee has been convened so far.

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period last year. Furthermore, power sector witnessed repatriation of $29.8 million against $20.1 million in the identical period last year.

Likewise, oil and gas exploration companies have transferred $16.7 million profit/dividend in 4MFY11 by depicting 49.8 per cent increase against $11.1 million transferred in the same preceding period.

On the other hand, major decline in repatriation came from food, chemical, trade, storage, fertiliser, textile and beverages sector. The majority of the sectors were badly affected by drop in economic growth and corporate profitability.

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Clearing Company of Pakistan Limited (NCCPL) data.

Positive activities continued at local bourses as KSE 100-Index closed by gaining 1.63 per cent or 179.02 points at 11,145.02.

Weekly average volume increased by 70.6 per cent to 118.54 million shares against 69.47 million shares traded week.

However market only performed well on the first trading day of the week while for the next four days market remained dull with thin volumes, on fears of rise in interest rates in the monetary policy, which is to be announced today.

During the week, offshore investors opted for buying fresh position as foreigners bought shares worth $27.48 million and sold $15.04 million resulting in net buying of $12.44 million during the week.

Surprisingly, none of local category invested on net buying basis on last week. Biggest weekly selling was witnessed from Mutual Funds which offloaded $19.33 million of shares in the local bourse against the buying of $13.22 million, thus turning the net selling worth of $6.11 million. Moreover, banks and local individuals also net ejected $2.39 million and $1.20 million respectively.

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which is neighboring Turkmenistan. Turkmenistan, a former Soviet republic bordering Afghanistan and Iran, plans to triple gas production to 230 billion cubic meters over the next two decades and forecasts a more than six-fold increase in oil output, to 67 million tons per year. -Agencies

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and Helmand thought Afghan forces would not be able to provide adequate security when foreign forces withdraw, and 81 per cent thought al Qaeda would return to Afghanistan if the Taliban regained power.

With Obama to review his Afghanistan war strategy next month, attention is now focused on a withdrawal timetable. US and Nato leaders agreed at a summit in Lisbon this week to accept Afghan President Hamid Karzai's timetable for a 2014 security handover. The readiness of Afghan forces, which now number about 258,000 and are to be ramped up to 306,000 by October 2011, is a crucial part of that equation.

There was also deep-seated suspicion between those in Kandahar city, which was the focus of security efforts over the past year or more, and rural areas like Panjwai and Zhari were such efforts began more recently. "If you're from Kandahar and you go to a district like that, you'll be slaughtered," said Pida, from the governor's office.

Abdul Jabar, who sells fruit from a handcart, said things had improved in Kandahar city but security outside the city and the slow build-up of Afghan forces were still worrying. "They have to increase the number of Afghan recruits and they have to be better equipped. If our own government forces are strengthened enough, maybe the Taliban can't take over," he said. Some supported bringing the Taliban into the government, or creating enough economic opportunity to lure young Afghans away from the insurgency. Others said cash was the answer. -Reuters

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debt troubles are far from over, financial services firm Dubai Group recently missed two payments on separate loans. -Reuters

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had declared steps taken on Nov 3, 2007 by former president Pervez Musharraf as "illegal and unconstitutional" under Article 279 of the Constitution. The judgment came after the 14-judge larger bench headed

by Chief Justice Iftikhar Muhammad Chaudhry had completed hearing of constitutional petitions regarding the PCO judges, appointments of judges in the superior judiciary and steps taken under the PCO. -Online

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"We are loyal to the party, the PPP loyal workers want to see Shaheed BB's murderers behind the bars", she demanded. "We will get the party free from the clutches of those who are working against the party's philosophy. The party would be run according to the legacy of Z. A. Bhutto and Shaheed Mohtarma Benazir Bhutto", she added. Naheed Khan questioned that who is President Zardari to pardon the killers of Benazir Bhutto. She warned that those if targeted the loyal Jiyalas of the party and her workers, would face the consequences. The PPP leader said that she is neither scared nor coward and added that she did not accept the attitude spreading disappointment in the party workers.

Zulfiqar Ali Bhutto laid foundation of Pakistan Peoples Party in Lahore on November 30, 1968, but the annoyed workers of the party organized themselves under the leadership of Senator Safdar Abbasi and Naheed Khan, the Political Secretary to the slain PPP Chairperson Benazir Bhutto in Lahore. -Agencies

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on them for imports. "Pakistan only sends poor quality and unhealthy things, without any controls imposed by the Afghan government," said Rahim Khan, a shopkeeper in Afghanistan whose general store is packed with goods from his unloved neighbour.

"This agreement is totally to the advantage of Pakistan. They should allow Afghan traders to bring Indian goods into the country, why are we forced to just use Pakistani products?"- Reuters

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Trade via Pak brings less profit to Kabul

KARACHI: A view of destruction at the site of a plane crash after a Russian cargo plane crashed in Naval residential area in Dalmia in Karachi. -Online

Taliban return haunts Afghans

Afgan civil war feared after Nato KANDAHAR: Nato's planned withdrawal of combat troops from Afghanistan in 2014 will likely mean a Taliban takeover and civil war, residents in the heartland of the insurgency fear, echoing a worrying recent report.

Afghans in the southern city of Kandahar said Afghanistan's security forces would likely collapse when foreign combat troops left, even if they continued providing training and equipment.

Kandahar province is the birthplace of the Taliban and has long been the focal point of Afghanistan's bitter insurgency.

"It's 100 per cent possible that there will be a civil war," said Pida Muhammad, a worker at the Kandahar governor's palace.

"Afghans cannot have union among themselves. That could only happen by a miracle, only Allah can do it. It's beyond our comprehension," the 26-year-old said.

Kandahar is one of Afghanistan's most fertile areas and is an important element in the rich, illicit opium poppy trade that helps funds the insurgency, as well as a

major road trade hub.

Security in Kandahar city has improved dramatically, US and Nato commanders say, especially after the bulk of 30,000 extra US troops ordered

by President Barack Obama last December were sent to fight in the south.

Residents say bombings have tapered off in recent weeks but, even though thankful for security gains, Kandaharis worry that Afghanistan could again be plunged into escalating fighting.

"It will take at least 15 years or more for the Afghan security forces to stand on their own," said Nadeem Akbar, a project officer for the US Agency for International Development.

Earlier this month, a report by the International Council on Security and Development policy think tank found that 92 percent of Afghan men surveyed in Kandahar and neighbouring Helmand knew nothing of the September 11, 2001, attacks that precipitated the war.

The ICOS report found 61 percent of the 1,000 men surveyed in Kandahar See # 7 Page 11

Financial officials make case for recovery

Dubai may sell shares in SOEs DUBAI: The emirate of Dubai may consider selling shares in governmentowned companies as it continues to restructure those hit hard by the financial crisis, top financial officials said on Sunday.

The emirate, a regional financial and trade hub, suffered a blow to its reputation a year ago when state-linked conglomerate Dubai World announced it would ask creditors for a standstill agreement on almost $25 billion in debt.

"Dubai World is now on sound financial footing," Sheikh Ahmed bin Saeed al-Maktoum, chairman of Dubai Supreme Fiscal Committee, told a news conference.

In the past year, Dubai World managed to reach a restructuring deal with creditors, allowing the government to tap into improved investor confidence to issue a $1.25 billion bond in September.

Prized assets such as DP World, the Atlantis Hotel and casino operator MGM Resorts International were presented under the restructuring as poten-

tial assets that could be sold to the public to help raise cash.

There is also keen interest in other state-linked assets such as Emirates airlines and Dubai Electricity and Water Authority (DEWA).

"We are working on opening up the capital of leading companies to our public," he said.

Property developer Nakheel, which is trying to reach agreement on a proposed restructuring plan, is also returning to health, said Faisal Mikou, the executive vice president of the Investment Corporation of Dubai.

"We are making very good progress on the restructuring. Nakheel's financial and operational restructuring is going according to plan," Mikou said.

Nakheel plans to issue a sukuk, or Islamic bond, to its trade creditors in the first quarter of 2011, he said.

Despite improving balance sheets among Dubai's state-linked companies, significant challenges remain.

In a reminder that Gulf Arab emirate's See # 8 Page 11

SC takes up PCO judges issue today

Contempt case hearing resumes ISLAMABAD: A five-member bench of the Supreme Court will resume today hearing of contempt of court matter against a number of former judges, who took oath under the Provisional Constitutional Order of 2007 in defiance of its restraining order of Nov 3, 2007.

The bench comprising Justice Muhammad Sair Ali, Justice Mahmood Akhtar Shahid Siddiqui, Justice Jawwad S Khwaja, Justice Khilji Arif Hussain and Justice Tariq Parvez, will decide the matter of contempt of court (determination of legal question/proceedings) against certain former judges of the superior judiciary.

The bench will take up the issue

against Justice retired Iftikhar Hussain Chaudhry, Justice Khurshid Anwar Bhinder, Justice Hamid Ali Shah, Justice Zafar Iqbal Chaudhry Justice Hasanat Ahmed Khan Justice Syed Shabbar Raza, Justice Yasmin Abbasey, Justice Jehan Zaib Rahim, Justice Sayed Zahid Hussain, Justice (Retd) Abdul Hameed Dogar, Justice Syed Sajjad Hussain Shah, Justice (Retd) Iftikhar Hussain Chaudhry, Justice Syed Hamid Ali Shah and Justice Jehanzaib Rahim.

The bench is expected to adjudicate upon the pending issue of proceedings in civil miscellaneous appeals and certain pleas against order of the Registrar.

On July 31, 2009, the Supreme Court See # 9 Page 11

Gen Kayani commences second term as COAS ISLAMABAD: Chief of Army Staff, General Ashfaq Parvez Kayani after completing the first-term Sunday, has started services for the second term of three years as Army Chief.

General Ashfaq Parvez Kayani has been appointed as

KABUL: A deal to open new export markets for Afghan products, by creating a tax-free transit corridor to India through Pakistan, is lopsided and may cement Islamabad's resented grip on the Afghan economy, traders and officials say.

The US-sponsored transit agreement which comes into effect next year allows Afghan trucks to drive tax free across Pakistan up to the Indian border with products for sale there -- but they cannot load up with Indian exports for the return journey.

Instead, Afghan traders must buy products made in or shipped into Pakistan ensuring Pakistani merchants do not lose their foothold in a market worth billions of dollars in annual sales.

"We couldn't insist on bringing Indian goods to the country from Pakistan's border or they would not have been interested in signing it," said Mozamel Shinware, head of International Trade in the Ministry of Commerce.

Afghanistan also agreed to allow Pakistan traders to seek routes to central Asia along Afghan roads, Shinware said.

The long-awaited agreement has been in the pipeline for months and was hammered out with help from

the United States, which is keen to try and wean Afghanistan off billions of dollars in foreign aid by boosting economic growth.

Afghanistan's total worldwide exports were only $400 million last year, and according to Afghanistan's Chamber of Commerce around half of that was sale of fruit and carpets to India.

"Pakistan charges a 35 per cent tax on Afghanistan exports to Pakistan itself, but transit is now free," said Chamber of Commerce deputy head Khan Jan Alokozai.

However the trucks will have to stock up with Pakistani goods for their return journey. And importing Indian goods via sea is very costly, often more than twice as expensive as overland transport, sources at the commerce ministry say.

"Pakistan was very cautious about signing this contract, thinking about its revenues first and foremost," said Afghan finance ministry spokesman Aziz Shams.

"We get 10 per cent of the benefits from the contract, and Pakistan gets 90 per cent of the benefits," he said.

Afghanistan is the largest buyer of Pakistan goods ranging from food items to construction materials, worth $4 billion a year, Shams

added.

Islamabad says Afghanistan is the country's third biggest market, although it put trade at $1.45 billion for the 11 months from July 2009.

The difference may be due to smuggling.

The trade deal should provide a significant new outlet for Afghan goods as the Kabul government and its foreign partners struggle to rebuild an economy crippled by decades of war.

India is a relatively short truck journey away and in 2003 signed a preferential trade agreement with Kabul, one of only two such bilateral deals Delhi has agreed.

A strengthening insurgency and weak infrastructure have meant Afghans are still heavily dependent on foreign aid.

Unemployment runs at around 40 percent, and economists and businessmen say lack of jobs makes it easier for militants to recruit fighters to their ranks, so creating businesses and finding markets for Afghan goods is an urgent concern.

But landlocked Afghanistan is dependent on its neighbours for access to markets, and its small manufacturing base means it also relies See # 11 Page 11

Iran-Turkmen gas project enters 2nd phase TEHRAN: The second phase of Turkmenistan-Iran gas pipeline was inaugurated in the northeastern city of Sarakhs in Khorassan Razavi province Sunday by the presidents of Iran and Turkmenistan.

President Mahmoud Ahmadinejad and his Turkmen counterpart Gurbanguly Berdimuhamedow attended the inaugural ceremony of the project which is to transfer

Turkmenistan's gas to northern and northeastern provinces of Iran.

The 1,024-kilometer project was completed in two phases. The first 524-km-long phase was commissioned last year.

The second phase, which was inaugurated today, is 500 km long.

Sarakhs is located in the northeastern part of the country, neighboring Turkmenistan.

Supplying gas to 16 northernprovinces of the country, creating a new corridor for swap and transiting gas to East European markets are among advantages of the 1.2- billion-dollar project.

Oil Minister Masoud Mir-Kazemi and Foreign Minister Manouchehr Mottaki are accompanying President Ahmadinejad in his tour to Sarakhs See # 6 Page 11

Army Chief by the former president Pervez Musharraf on November 27, 2007.

Army Chief has completed his tenure Sunday on November 28, 2010 after completing three years.

Prime Minister Syed Yousuf Raza Gilani announced the three-year extension in tenure of General Kayani.

In a notification issued by Secretary Defence, Athar Ali clearly notified that army chief to start his duties for next term right after completing previous term.

Prime Minister on the advice of COAS has also given extension to Inter Services Intelligence (ISI) Chief, Ahmad Shuja Pasha who completed his term in June 2010. -Online

Naheed lashes out at Zardari LAHORE: The disgruntled "Jiyalas" of Pakistan Peoples Party are trying to organise themselves under the leadership of Senator Safdar Abbasi and Naheed Khan.

The PPP workers, who call themselves 'Nazariyati activists' of the party Sunday held a separate workers convention in Lahore on the occasion of party's foundation day.

Lashing out at the incumbent PPP-led federal government and Co-chairperson of the party President Asif Ali Zardari, Naheed Khan said she did not accept the democracy of President Zardari and added that democracy and reconciliatory policy by the President is creating revolt in the party ranks.

Naheed Khan said, "President should keep his democracy and reconciliation with himself as I do not accept his democracy.

Tracing out the murderers of Benazir Bhutto's assassins is a justice and a jigsaw puzzle which is still to be resolved".

Strongly criticizing the PPP leaders, Naheed Khan alleged that the PPP leaders are blind and deaf as they do not raise the question about the murderers of Benazir Bhutto before the President and the Prime Minister.

See # 10 Page 11

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