International Karachi, Monday, January 31, 2011, Safar-ul-Muzaffar 26, Price Rs12 Pages 12
Malik wants speedy passage of Terror Act
Samjhauta blast: Will share probe soon: India See on Page 12 Salehi, Iran's new FM
See on Page 12
World leaders conclude Davos discussions
See on Page 12
See on Page 12
US, Turkey to pull their citizens out of Egypt
Economic Indicators Forex Reserves (22-Jan-11) Inflation CPI% (Jul 10-Dec 10) Exports (Jul 10-Dec 10) Imports (Jul 10-Dec 10) Trade Balance (Jul 10-Dec 10) Current A/C (Jul 10- Dec 10) Remittances (Jul 10 - Dec 10) Foreign Invest (Jul 10-Dec 10) Revenue (Jul 10 Dec 10) Foreign Debt (Sep 10) Domestic Debt (Dec 10) Repatriated Profit (Jul- Dec 10) LSM Growth (Nov 10)
GDP Growth FY10E Per Capita Income FY10 Population
$17.30bn 14.61% $10.98bn $19.13bn $(8.15)bn $26mn $5.29bn $1.05bn Rs 638bn $58.41bn Rs 5497.4bn $323.6mn -4.69% 4.10% $1,051 175.01mn
Pakistanis safe in Egypt: FO FO says govt ready to evacuate if need arises World leaders increase pressure on Mubarak
Portfolio Investment SCRA(U.S $ in million)
198.29 2.90 0.55 3065
Yearly(Jul, 2010 up to 28-Jan-2011) Monthly(Dec, 2010 up to-28-Jan-2011) Daily (28-Jan-2011) Total Portfolio Invest (21 Jan-2010)
NCCPL (U.S $ in million)
FIPI (28-Jan-2011) Local Companies (28-Jan-2011) Banks / DFI (28-Jan-2011) Mutual Funds (28-Jan-2011) NBFC (28-Jan-2011) Local Investors (28-Jan-2011) Other Organization (28-Jan-2011)
1.13 5.97 -1.29 2.06 -0.65 -4.82 -2.40
Global Indices Index KSE 100 Nikkei 225 Hang Seng Sensex 30 ADX SSE COMP. FTSE 100 Dow Jones
Close 12,462.70 10,360.34 23,617.02 18,395.97 2,659.04 2,752.75 5,881.37 11,823.70
Change 14.30 118.32 162.60 288.46 9.62 3.60 83.71 166.13
GDR update Symbols MCB (1 GDR= 2 Shares) OGDC (1 GDR= 10 Shares) UBL (1 GDR= 4 Shares) LUCK (1 GDR= 4 Shares) HUBC (1 GDR= 25 Shares)
$.Price PKR/Shares 2.60 111.40 18.51 158.62 2.00 42.85 1.70 36.42 11.39 39.04
Money Market Update T-Bills (3 Mths) T-Bills (6 Mths) T-Bills (12 Mths) Discount Rate Kibor (1 Mth) Kibor (3 Mths) Kibor (6 Mths) Kibor ( 9 Mths) Kibor (1Yr) P.I.B ( 3 Yrs) P.I.B (5 Yrs) P.I.B (10 Yrs) P.I.B (15 Yrs) P.I.B (20 Yrs) P.I.B (30 Yrs)
26-Jan-2011 26-Jan-2011 26-Jan-2011 29-Nov-2010 29-Jan-2011 29-Jan-2011 29-Jan-2011 29-Jan-2011 29-Jan-2011 29-Jan-2011 29-Jan-2011 29-Jan-2011 29-Jan-2011 29-Jan-2011 29-Jan-2011
13.67% 13.71% 13.88% 14.00% 13.64% 13.80% 13.90% 14.24% 14.34% 14.20% 14.22% 14.21% 14.62% 14.81% 14.98%
Commodities Crude Oil (brent)$/bbl 99.42 Crude Oil (WTI)$/bbl 89.34 Cotton $/lb 164.75 Gold $/ozs 1,341.70 Silver $/ozs 27.92 Malaysian Palm $ 1,208 GOLD (NCEL) PKR 36,341 KHI Cotton 40Kg PKR 11,574
Open Mkt Currency Rates Symbols
Buy (Rs)
Australian $ 84.60 Canadian $ 85.80 Danish Krone 14.00 Euro 116.20 Hong Kong $ 10.90 Japanese Yen 1.031 Saudi Riyal 23.25 Singapore $ 66.60 Swedish Korona 12.00 Swiss Franc 85.70 U.A.E Dirham 23.25 UK Pound 136.20 US $ 85.95
Sell (Rs)
85.60 86.80 14.70 117.90 11.00 1.057 23.50 67.60 12.10 86.30 23.50 137.70 86.25
Inter-Bank Currency Rates Symbols
Australian $ Canadian $ Danish Krone Euro Hong Kong $ Japanese Yen Saudi Riyal Singapore $ Swedish Korona Swiss Franc U.A.E Dirham UK Pound US $
Buying TT Clean
Selling TT & OD
85.13 85.49 15.63 116.52 10.99 1.044 22.82 66.60 13.11 90.85 23.52 135.82 85.69
85.33 85.69 15.67 116.79 11.02 1.046 22.88 66.76 13.14 91.06 23.57 136.13 85.88
Weather Forecast CITIES
ISLAMABAD KARACHI LAHORE FAISALABAD QUETTA RAWALPINDI
MAX-TEMP
21°C 26°C 22°C 27°C 18°C 18°C
MIN
1°C 11°C 4°C 4°C -4°C 4°C
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KARACHI: Leaders of Mutahida Qaumi Movement (MQM) join hands to express solidarity during National Solidarity gathering organised by MQM at Nine Zero. -Online
'Qaumi Yakjehti Jalsa'
MQM warns govt of people's revolt Altaf urges govt to end corruption, says more provinces beneficial Staff Reporter KARACHI: Muttahida Qaumi Movement (MQM) Chief Altaf Hussain here on Sunday warned government of peoples' revolt if government would not mend it affairs sooner and fails to eradicate corruption from the country adding that increasing the number of provinces will only strengthen the country. Addressing via telephone a crowd of thousands of MQM supporters and workers at its
Housing Scam
FIR against three Indian army officers NEW DELHI: After Sukna land scam in which senior most Indian Army officer has been court-martialed, India's Central Bureau of Intelligence (CBI) has registered an FIR in the Adarsh Housing Society scam naming another three senior retired Army officers among 13 persons. A report published by Press Trust of India said that the FIR had named Major General (Retd) A R Kumar, Brigadier (Retd) MM Wanchoo and Brigadier (Retd) R C Sharma under several charges including criminal conspiracy, cheating, forgery, and showing forged document as genuine in building the society illegally, Kashmir Media Service reported. The FIR has been lodged on various pretexts including criminal conspiracy, cheating, corruption, and showing forged documents. The case was registered after the CBI last week received flak from the Bombay High Court for its tardy probe in the case. -APP
'Qaumi Yakjehti Jalsa' (national unity meeting) here at Jinnah Ground near MQM Headquarters, he supported the idea of creation of more provinces in the country and proposed holding of a referendum on the issue. "Creation of more provinces will only strengthen the country," Altaf Hussain believed. MQM Chief said: "MQM is not in favor of a bloody revolution but it would be impossible to stop the people if atrocities
continued unabated." The manifesto of MQM is the one present in Hujjat-ul-Wida sermon of Hazrat Muhammad (SAW), who made it clear that nobody with fair complexion enjoyed any superiority to any dark skinned person," Altaf Hussain claimed amid vociferous slogans by a massive crowd. He said MQM is laced with weapons of love, brotherhood and harmony. "MQM has a gun See # 11 Page 11
NA Body Finalises Petroleum Prices today
Rs2-4/ltr hike in POL prices likely ISLAMABAD: Special committee of petroleum comprising government and opposition members is to hold important meeting today (Monday) pertaining to revisit and finalise the petroleum prices. According to the sources, committee meeting will be chaired by the Federal Petroleum Minister Syed Naveed Qamar in the parliament house where authorities of petroleum ministry will brief the members about the expected hike in prices.
Sources told Online that petroleum minister will try to take the members of the committee on board as per the aspirations of Prime Minister Gilani whereas political parties are expected to give a go-ahead to government for Rs2-4 per litre increase in the prices. Sources added, government has suffered Rs12 billion damages during the last two month in the head of petroleum subsidy and if government gives more subsidy in this regard, See # 6 Page 11
Pak inflation highest in Asia ISLAMABAD: Pakistan has attained the top slot among Asian countries pertaining to inflation indicator of economy where it is recorded at 15.7 per cent. This has been depicted in a report where Pakistani people are facing the worst situation
among the seven South Asian countries. According to report findings, inflation rate in Pakistan has been recorded at 15.7 per cent, India secures second position with 9.6 per cent inflation rate, Bangladesh 8.1 per cent, See # 7 Page 11
ISLAMABAD: Foreign Office Spokesman, Abdul Basit Sunday said that Pakistani citizens living in Egypt are safe. Due to critical conditions in Egypt, he said: "We have asked the people to remain present at homes and hotels for their safety." In a brief telephonic talk with a private TV channel, Abdul Basit said that country's embassy is monitoring the situation and contacting the Pakistanis and embassies of other countries aiming to keep them abreast of the latest developments. He said: "Our government's aim is to ensure security of our nationals living in Egypt." Responding to a question he said arrangements have already been completed for the safe evacuation of Pakistanis from Egypt, if need arises. Furthermore, in a press statement, foreign ministry
Not to release Davis despite US pressure, says govt ISLAMABAD: Presidential spokesman Farhatullah Babar Sunday said that Raymond Davis, allegedly involved in the three murders on Lahore streets, would not be released despite pressures, media reported. Talking to media men following the Chehlum of slain governor Punjab, Salman Taseer, he said it would be seen whether or not Raymond Davis is entitled to the diplomatic immunity. The case is before the court and only court is competent to issue its verdict in this regard.-Agencies
Egypt unrest rattles ME stocks DUBAI: Stock markets in several Gulf countries, where many leading firms have interests in Egypt, dropped Sunday on mounting concerns over developments in the world's most populous Arab nation. The Dubai Financial Market shed over six per cent of its value at the opening of trading week, with the DFM index dropping to 1,505.62 points. The market remained down after 0800 GMT at 1,518.97 points, or 5.81 per cent down. The leading traded company, Emaar Properties, saw its share See # 10 Page 11 spokesman Abdul Basit said that all Pakistanis are safe and the embassy in Cairo is in touch with the nationals. There are some 150 Pakistani families in Egypt and the total number is nearly 700, the spokesman said. The anti-government campaign has claimed at least 100 lives since Tuesday and about 2,000 have been injured, according to media reports. "We are closely watching the situation in Egypt," the Pakistani spokesman said,
adding that security measures have been taken for nationals in the violence-hit city. On the other hand, United States and Turkey said they were offering to evacuate citizens wanting to leave Egypt, which has been rocked by violent protests against the rule of President Hosni Mubarak. Other governments advised their citizens to leave the country or to avoid traveling there if possible, although the Russian tourist agency said 40,000 See # 9 Page 11
Mkt would react positively: Arif Habib
Brokers welcome staying key rate Nawaz Ali KARACHI: Brokers of Karachi Stock Exchange welcomed the decision of the central bank to keep the key discount rates unchanged at 14 per cent on Saturday. Chairman Arif Habib Group, Arif Habib while talking to The Financial Daily said it is a good decision by the central bank and market would react positively on the news. He also said that government should address the fiscal deficit issue so that interest rates could be brought down. It should be noted that State
Bank of Pakistan has decided to keep its policy rate unchanged at 14.0 percent on Saturday. The decision was said to be unexpected as following excessive government borrowings and higher inflation most of the analysts were expecting at least an increase of 50-bps in the interest rate but the said decision has surprised them. "SBP is also aware of the delicate balance that needs to be struck between risks to inflation and economic growth and therefore has decided to keep the policy rate unchanged at 14 per cent for the time being," Shahid See # 3 Page 11
Offshorers invest $6.32mn last wk Thousands rally over blasphemy law LAHORE: About 40,000 people rallied in Lahore on Sunday in the latest protest against proposed reforms of a controversial blasphemy law, police said. Religious groups have held protests in several cities since former Punjab governor Salman Taseer vowed to amend the law. Taseer's stance enraged the country's increasingly conservative religious base and he was assassinated on January 4 by his own security guard, who See # 4 Page 11
Trade volumes fall 50pc WoW Ghulam Raza Rajani
KARACHI: Local bourses continued to tempt foreign investors in the outgoing week as overseas investors have made a net investment of $6.32 million, as per National Clearing Company of Pakistan Limited (NCCPL) data. During the week KSE 100 Index rose by marginal 30.79 points to 12462.70 level; while investors preferred to remain
sideline or on selling side as local individuals remained seller on net basis mainly due to upcoming monetary policy. This was evident with average volume which was reduced by 49.5 per cent to 117 million shares against 232 million shares traded week before last. Foreign investors decided for buying fresh position as they bought shares worth $18.78 million and sold $12.45 See # 5 Page 11
Situation in Tunis, Egypt cannot be compared with Pak, says PM
Gilani says it’s time to remodel economy l Says govt would not stay silent on Davis issue l 10-point agenda to be actioned in letter & spirit
MULTAN: Prime Minister Syed Yousuf Raza Gilani said Sunday that government was committed to take its reconciliation policy ahead, added that time has come to introduce new economic structure, which should also be conducive and productive for all governments to come. Talking to a delegation led by president of district bar association, Arbab Syed, he pointed
out that, government had taken such steps as restoration of 1973 Constitution, according to vision of (late) Benazir Bhutto, while also citing approvals and implementations of 18th and 19th amendments. PM also affirmed government's commitment and strong belief in media's freedom and Judiciary's independence and endeavored to
strengthen and empower Parliament. Stressing lawyers to help provide cheap and available justice and keeping away from corruption, he stressed that civil society media and politicians should play their due part in curbing the morbidity of terrorism. He also expressed his and government's keen desire to showcase the true spirit of
Islam, through interpretation of its true values of love, peace, brotherhood, and harmony. He also announced setting up of a judicial commission complex in Multan, in order to provide better facilities to lawyers, and also gave on-spot directives to commissioner Multan to locate the best available land for construction of lawyers' colony as well.
Afterwards PM Gilani also met the cotton ginning association, conveying it the importance of agriculture sector in economic progress of country, and special steps being taken by government regarding the issue. Asked about US Vice President Joe Biden's statement that a lot is happening from Tunisia, and Egypt and this
wave could reach Pakistan, Prime Minister said situation in Tunis and Egypt cannot be compared with Pakistan. Prime Minister said that government is not silent on the issue of US national who killed two Pakistanis pointing out that the matter is subjudice in the court and he would not say See # 8 Page 11
2
Monday, January 31, 2011
Govt discovers unconventional sectors
Govt striving to create new jobs: Sharmila KARACHI: Water accumulated on the broken main road near Banaras Chorangi due to the leakage water line. -ONLINE
USC substandard goods keep customers away ISLAMABAD: Utility Stores Corporation (USC) in federal capital almost give a deserted look - thanks to the supply of low quality edibles. During a visit to various outlets of USC, it was revealed that except Rs 1 or 2, commodities are being sold at the same rate as in the open market and these stores have lost their charm even for low income groups. USC, of G-6 bazar was empty and the management there told APP that hardly one or two people visit the store daily. There were stocks of sugar lying on the flour but there was no one to buy it, probably it was sub-standard sugar and even people from low income group showed their indifference to the availability of this
precious commodity. Same was the condition of Utility Store in New Aabpara G-6, which has all the basic commodities including food items,cosmetics, artificial jewellery,utensils but all these commodities were kept in long shelves and the staff were seen waiting for the customers. While talking to APP, a customer Mrs Riaz said: " I was the regular customer of USC four years ago but persistent supply of low standard items has forced me to switch over to open market where better quality of commodities are available almost on the same price". Especially the pulses sold here are not fit for use, she went on to add. Another customer Asma said: " I only take sugar from
here as it is a little bit cheaper than the open market. Otherwise other things, especially rice are of poor quality". An official in USC said: " We never compromise on the quality of sugar adding that the quality of imported sugar is also being monitored by the Pakistan Standards and Quality Control Authority (PSQCA)". The prices of ghee and cooking oil also witness an upward trend and the recent increase during the last 4 months was made with a ratio of Rs 6 per kilogramme (kg) pushing rates to its old rates of Rs 148 per kg. As a consequence, prices of ghee and cooking oil have almost come at par with those available in the retail markets of the city. -APP
KARACHI: The Pakistan Sri Lanka Business Forum meeting was held at Consulate premises. Picture shows Consul General D.W.Jinadasa, PSBF Chairman Majyd Aziz, President Abdul Rauf Tabani, Farrukh Mazhar, Iqbal Shaikhani, Furqan Tabani ,Zaki Ullah Khan, Samad Dada, Abdul Wahab, Khuwaja Jahanzeb and Tasneem Bandook Wala.-Staff Photo
Economy Watch urges drugs for needy thru Baitul Mal ISLAMABAD: The Pakistan Economy Watch (PEW) on Sunday suggested improvements in the provision of medicine to the needy through Pakistan Bait-ul-Mal (PBM). Provision of medical assistance to underprivileged should not be left to the staff of government-owned hospitals; it should be done through wellreputed private parties and medical stores, it said. Medicines should be stamped and their packing and labels should be marked before delivery to discourage resale and forgery, said Dr. Murtaza Mughal, President PEW.
Presently, he said, needy contacts PBM about their requirement through social welfare staff of the hospitals. After receiving a request, PBM verifies it and release cheque to the hospitals under Individual Financial Assistance Programme. Subsequently the hospital staff hands over medicines to the applicant. The process takes some days to complete that needs to be accelerated, said Dr. Murtaza Mughal. However, complaints of unnecessary delay, provision of substandard, expired and fake drugs are common-
place; he said adding that quantity is sometimes compromised. This practice has transformed into a profitable business in the major government hospitals that needs to be curbed. It tantamount to killing humanity including poor, disabled, widows and orphans, he said. Records of the patients treated under the PBM, Zakat and other welfare funds should be properly maintained, he said adding that thriving private healthcare business is ample proof of inefficiency of public sector facilities. -Online
Fake change-mongers in past destroyed Pak: Shah SUKKUR: The federal minister for manpower and religious affairs, Syed Khurshid Hassan Shah has said that those who raised the slogans of changing the destiny of Nation in past, have literally destroyed the Country. Talking to an event in Thakrato area of Sukkur district on the inauguration of gas supply, he said that if the Thar coal project had been allowed to flourish during the regime of (late) Benazir Bhutto, Sindh would have been more prosperous. He said that the government endeavored to bring rural areas at par with urban areas, in order to speed up developmental work, thus discarding the wrong impression that PPP always strived for urban development, only.
He also informed that loans of World Bank were subject to terms and conditions, which were detrimental to Country’s progress and finances. He also stressed that these developmental projects were a necessity and in par with the commitment, rather than any special favor, as these projects were started with taxes of the masses. He also stressed on youth to quit running after jobs, and concentrate on such entrepreneurial projects as livestock, which should/would assist them in attaining their future goals. Earlier the Sindh irrigation minister, Jam Saifullah Dharejo also addressed the occasion, announcing provision of electricity to 250 and gas to 150 villages. -APP
Hindu MPA of Sindh migrates to India KARACHI: The Hindu MPA of PML-Q Sindh, Ram Sudhu has relocated to India, alongwith his entire family. His resignation has been tendered after six months after his relocation to India and has been confirmed by MNA, PML-Q, Abdul Razzaq Rahoon. Ram Sudhu had gone to India under the pretext of treatment, and had also managed to relocate his family there. He also managed to sell of his property and house in Tharparker region of Pakistan Abdul Razzaq Rahoon has said that Indian doctors had advised a complete rest for two years for the most renowned Hindu minority leader of Pakistan, after which he decided to resign his Assembly seat. He was elected to Sindh Assembly in 1985, and has also known to have held the post of vice nazim of Tharparker district council, under the Musharraf regime. BBC estimates that, each month, at least one Hindu family was relocating to India, over any pretext. Each family, majority of which belongs from Hyderabad, and were regular victims to various crimes of abductions for ransom and robberies, has cited danger to its existence and assets here. Online
Forces cop 10 suspects from Mohmand MOHMAND AGENCY: Security Forces have arrested 10 suspects during a search operation against miscreants in Tehsil Char and shifted them to an unknown place her eon Sunday. According to Media Reports, in a search operation against the terrorists, Security Forces have captured 10 suspects from Char Gali of Tehsil Anmbar of Mohmand Agency, and transferred them to an unspecified location. In addition, after continuing operations in different areas of Mohmand Agency, Security Forces have taken control of Saggi, Bahir, Kajeera, Zaower Moosa Core. Security Forces are advancing towards Tehsil Saafi and Tehsil Anmbar.
KARACHI: The present democratic government is endeavouring for the creation of job opportunities and also help increase the country's foreign exchange reserves. This was stated by the Advisor to the Sindh Chief Minister on Information, Sharmila Faruqui here on Sunday. She said that there exist a lot of opportunities for generating employment opportunities. The Adviser said that non-traditional sectors of the economy have also been explored for the purpose. She pointed out that tourism in various parts of the country, has also been identified for creation of facilities that would also help generate employment opportunities and earning of the foreign exchange for the country. Sharmila pointed out that when the Pakistan Peoples Party came to power, the country was facing immense economic difficulties and that the government took some difficult decisions as well. She said that under the leadership of President Asif Ali Zardari, a foundation has been
laid for the economic development of the country. The Advisor said that the law and order situation is also being improved to help enhance investment in the country. She stated that while following the policy of reconciliation, the government has achieved many historic successes. Sharmila Faruqui has said that the present democratic government has discovered the unconventional sectors of economy which have huge potential to earn foreign exchange and generate countless new jobs. Tourism, software, livestock, higher education institutions, transit trade, media and communication, mining and defense production are but just few. This she said while talking media men here in her office on Sunday. She said that Pakistan Peoples Party's government under leadership of President Asif Ali Zardari had identified tourist spots in every corner of Pakistan and provided basic facilities and attitude that is required to boost tourism Sharmila Faruqui added that
the local tourists could revive tourism sector and due to government's efforts peace had established in swat and local tourists as well as foreign tourists were going there. Provincial Advisor said, 'when the Peoples Party government came to power, the country was faced with severe economic problems. The state of the economy called for difficult decisions and courageous action, and the President Asif Ali Zardari acted to lay a new foundation for economic stabilisation and growth and the good results of his policies can be seen'. She added that Pakistan had a huge population and the government was investing in human resource and turning it from a burden to potential and we were improving law and order situation to attract investors. She said that the PPP led coalition government had adopted a reconciliation policy and through reconciliation embedded policies in the last three years and the present democratic government had achieved historical success in certain areas. -APP
Number of netizens rising every minute in Pakistan ISLAMABAD: Every minute roughly 11 Pakistanis become a part of the cellular community and more than 430,000 SMS messages and 160,000 voice minutes are being exchanged in less than one minute. The telecommunications sector contributes 3 per cent to the country's GDP whereas the total telecom sector revenue reached at Rs357.7 billion in the year 2009-10 compared to Rs333 billion in the previous year. This is despite the fact that the cellular industry in the country is paying the highest taxes in comparison to the entire region. According to official
sources,incomes of 6 out of every 1,000 persons in the country are tied with the telecom sector. This is not only a moment of joy but also a reaffirmation to the common Pakistani man and woman that access to technology is not a privilege limited to the elite, but a right that is available to them that is accessible and affordable. Half of Pakistanis including women have access to a cell phone together with rural areas (two-thirds in urban areas) while more than 86 per cent of men have their own cell phone, 40 per cent of women do. These figures suggest a much higher access to cell phone
(available in the household or within the extended family) than the figures for regular usage. Talking to APP an official in Pakistan Telecommunication Authority said basic data services such as SMS, are used by 40.2pc cell phone users with higher usage in urban areas (45 percent) than in rural (36-7 percent). SMS usage is also more frequent among men. He said internet usage remains low and is concentrated in urban areas. Internet and e-mail are more accessed used at home. Close to two-thirds of Pakistanis (60.8 per cent) have their own prepaid mobile phones, he went on to add.-APP
Fresh rain spell sows hope for coming crops ISLAMABAD: An expected moderate rain spell in the first week of February will bring positive impact on crops, especially in the Barani areas of the country. Talking to APP, Director General of Pakistan Meteorological Department (PMD) Arif Mehmood said that three rain spells are expected in next month. Scattered rains are likely from February 4-5 in Kalat, Quetta and Rawalpindi divisions, which will help overcome affects of dry weather
on crops and vegetables, he said. Arif said that wheat, peanut and other crops remained under moisture stress due to continued dry spell this season and their yield had been affected in Fateh Jang, Chakwal and other rain-fed areas. The reason behind less rains in the country is La-Nina phenomenon in the Pacific Ocean, which has affected the agriculture sector badly, he said. The Met office has already forecast that the country would receive 20 per cent less rains
during the ongoing winter season. The DG said," the La-Nina phenomenon developes when the sea surface temperature across the equatorial Eastern Central Pacific Ocean goes lower than normal". According to met analysis the weather will remain dry across the country during next three to four days. Isolated rain and snowfall over hills was recorded in different parts of the country, including Northern Areas, during last 48 hours. -APP
Book fair starts today KARACHI: A book fair is being organised at the Federal Urdu of Arts, Science and Technology (FUUAST) from January 31 (today). The spokesperson of the FUUAST said that a number of prominent publishers and book sellers will participate in the book fair the timings of which will be from 10 a.m. up to 5 p.m. A discount would also be offered on the sale of the books at the fair, it was further stated.-APP
ISLAMABAD: Ambassador of Japan Chihiro Atsumi poses for a group with the participants of 15th anniversary of MEXT Alumni Association of Pakistan, at his residence.-Online
3 Monday, January 31, 2011
US dollar weekly outlook
Greenback, franc may hold gains if Egypt worries persist Emerging market currencies down sharply versus dollar NEW YORK: The US dollar and Swiss franc are likely to hold gains this week should tensions in Egypt persist, raising concerns about stability in the Middle East and North Africa and increasing investor demand for safer havens. A slew of economic data and central bank decisions is due this week, including the US government's closely watched monthly non-farm payrolls report, but analysts said civil unrest in Egypt, if not contained, could easily trump macro fundamentals. Both the dollar and Swiss franc rallied on Friday, with the greenback and franc rising 0.8 per cent and 1.2 per cent, respectively, against the euro. Emerging market currencies also sold off, led by the Turkish lira and the Israeli shekel as news reports showed dozens of people were wounded after police and demonstrators fought in the streets of Cairo in protests against President Hosni Mubarak's threedecade rule. With Egyptian markets closed on Fridays and Saturdays, investors sold shekels and lira and bought the dollar in a proxy trade during the unrest. Oil futures also surged on the unrest in Egypt, rising 4.3 per cent to $89.36 per barrel on fear that prices may continue spiking from current levels. "This could really encompass the region. Egypt is really the pivot point in the entire Arab world and has implications for things like the price of oil," said Dan Dorrow, head of research at FX advisory and execution firm
Faros Trading in Stamford, Connecticut. "If Monday looks a lot like today, then the political risk premium will swamp any kind of central bank and economic fundamentals and we could see more safe-haven moves to the Swiss franc." Spot gold also rose on Friday as investors sought protection from political risk, rising 2.0 per cent at $1,337.50 per ounce. This week, the biggest focus will be the release on Friday of January US employment, with the economy expected to have created 146,000 jobs in the month. But unless the report shows a blockbuster number, the dollar is unlikely to gain much from it. In late afternoon trading, the euro fell 0.8 per cent to $1.3615. Earlier it fell as low as $1.3584 on electronic trading platform EBS, just shy of $1.3570, the 50 per cent retracement of its decline from November to January. As the euro's recent rally lost momentum, Goldman Sachs said in a research note on Friday it closed its long euro/dollar position, with a gain of about 2.7 per cent. Goldman's chief FX strategist, Thomas Stolper, however, said in an e-mail the bank remains constructive on the euro and expects it to hit $1.40 in three months, $1.45 in six months, and $1.50 in one year. Meanwhile, euro positioning in the latest week remained on the long side, data from the Commodity Futures Trading Commission showed, as the
value of the dollar's short position rose to the highest in two months. The euro fell 1.2 per cent against the Swiss franc to 1.2826 francs while the dollar dropped 0.4 per cent versus the franc to 0.9419. In the emerging market world, the dollar rose to a four-month high against the Israeli shekel, up 1.7 per cent at 3.7090. Jitters spread over to the Turkish lira, which fell to a seven-month low against the greenback. Late afternoon, the dollar surged 2.3 per cent against the Turkish lira to 1.6132. The Egyptian pound weakened sharply last week due to the turmoil, while the Egyptian EGX30 equity index is down more than 22 per cent from its January peak. With no trading on Friday, further losses are likely when trading resumes. Win Thin, global head of emerging market strategy at Brown Brothers Harriman, said while Egypt has a small economy and no longer is a major player in oil exports after it turned net oil importer, it is an important geopolitical player. Thin noted that Egypt is only one of two Arab countries that have signed peace treaties with Israel -- the other being Jordan -and therefore the United States considers it as an important ally in the region. Egypt also controls the Suez Canal, through which an estimated 8 per cent of global sea trade travels. "So clearly, it is in US and European interests to see a negotiated solution," Thin said. -Reuters
Specs raise bets against dollar: CFTC NEW YORK: Currency speculators increased bets against the US dollar to the most in two months, with bets in favor of the euro at their highest level since early November, Commodity Futures Trading Commission data showed on Friday. The value of the dollar's net short position rose to $18.2 billion in the week ended Jan. 25, from a net short position of $15.06 billion the previous week, according to Reuters and CFTC calculations. Net long positions on the euro jumped to 22,901 contracts, the highest since the week ended Nov. 9. Last week, speculators went long the euro for the first time in about two months to the tune of 4,109 contracts. A "short" position in a currency is a bet it will decline in value, while a "long" position is a bet on appreciation.-Reuters
Wheat falls 2pc on Egypt riots CHICAGO: US wheat futures tumbled more than 2 per cent on Friday as riots in Egypt prompted concerns about shipments to the world's largest wheat importer. Spiraling wheat markets also dragged down corn and soybean futures, after they had posted impressive advances in early dealings. "I think some people are starting to worry about what we call 'normal commercial trade,'" said Dan Basse, president of AgResource Co. "It's one thing to buy the goods, (but) can you move them in the country? Can you offload them at port, and will insurance companies ask for more premium?" March wheat on the Chicago Board of Trade closed down 201/2 cents at $8.25-3/4 per bushel, March corn was down 6-3/4 cents at $6.44 and March soy was down 1-1/2 cents per bushel at $13.98. Soybeans were up 0.3 per cent for the month, corn was up 2.38 per cent and wheat was up 3.96 per cent. For the week, soy was down 1 per cent, wheat up 0.15 per cent and corn down 2 per cent. Corn and soyoil are feedstocks for US biofuel production and often follow crude oil price trends.-Reuters
LONDON: The pound posted weekly losses against most of its 16 most-actively traded peers as data showed the economy shrank and confidence plunged, fueling concern the government's austerity measures are hurting growth. The pound fell against the dollar for the first time in three weeks and declined against the euro for the fourth consecutive week on speculation the Bank of England may not be able to raise interest rates to fight inflation as growth slows. GfK NOP Ltd.'s index of sentiment fell 8 points from December to minus 29, the lowest since March 2009, data showed. The country's gross domestic unexpectedly shrank 0.5 per cent in the three months through December. "We continue to see the pound as responding negatively to the stagflationary environment," said Ian Stannard, a senior currency strategist at BNP Paribas SA in London. "We prefer to sell the pound against the dollar on rallies." The pound fell 1 per cent in the week to $1.5838 as of 5:17 p.m. in London on Friday. Against the euro, it weakened 0.9 per cent to 85.93 pence. The British currency declined the most against the yen in a month, shedding 1.6 per cent to 129.99. The currency has fallen 7 per cent against nine of its developed-nation peers in the past 12 months, according to Bloomberg CorrelationWeighted Currency Indexes. Minutes released on Jan. 26 from the Bank of England's monetary policy meeting earlier this month showed a second policy maker favored higher rates to curb consumerprice growth. Inflation accelerated to an eight-month high in December, rising 3.7 per cent from a year earlier, as fuel and food prices climbed. -Agencies
Coffee soars to 13-1/2 Tin hits new year high; cocoa corrects pinnacle, but NEW YORK/LONDON: Arabica coffee futures on ICE closed at a 13-1/2-year high on Friday after technical signals pointed upwards, while cocoa fell for the first time in 10 sessions and slipped from its recent one-year peak. Sugar reversed to finish lower, with the raws sliding away from near 30-year peaks despite being underpinned by tight supplies. Arabica coffee futures surged and broke out of a five-week sideways trend after two days of making higher lows and higher highs, showing the market had found a bottom and signaling technical dealers to get long, dealers said. Fund purchases triggered automatic buy orders, dealers said. ICE March arabicas soared 8.05 cents or 3.4 per cent to close at $2.45 per lb, the highest settlement for the spot contract since June 1997. Liffe March robusta coffee finished the day up $39 at $2,129 per tonne. Arabica coffee has been jostled recently by macroeconomic pressure, and a shortage of highquality washed arabica beans from key producer Colombia and Central America. Cocoa futures closed weaker, pulling the ICE market from Thursday's one-year top stemming from a call for an export ban in top grower Ivory
Coast, which had ignited concerns about global supply. Cocoa underwent a correction after rallying around 20 per cent over the past three weeks, bolstered by a fierce political standoff in Ivory Coast after a Nov. 28 election, potentially threatening the supply pipeline. ICE benchmark March cocoa futures dropped $81 or 2.4 per cent to finish at $3,277 per tonne, closing the week up 2.9 per cent. London May cocoa fell 37 pounds to settle at 2,143 pounds a tonne. Raw sugar futures retreated on mild profit-taking after nearly hitting a 30-year peak, but the overall outlook of the market is still bullish given tight supplies. ICE March raw sugar fell 0.24 cent to settle at 33.94 cents per lb, having hit a session high at 34.51 cents. London March white sugar fell $10.10 to close at $814.40 per tonne. Analysts said the prospect of Brazil churning out more ethanol than sugar in the upcoming season, the likelihood that India may not export as much sugar as initially thought, and sizable imports into Europe and most likely Russia should keep values supported going forward. Dealers said ICE front-month sugar could soon test the 30-year high of 34.77 cents a lb, touched on Dec. 29. -Reuters
US cotton down in wake of liquidation NEW YORK: US cotton futures closed sharply lower Friday on profit-taking and end-of-theweek liquidation as players cashed in their gains after the market hit new record highs this week, analysts said. Stumbling grains prices and fears the unrest in Egypt may lead to macroeconomic weakness also weighed on fiber contracts, they said. The key March cotton contract on ICE Futures US fell 4.64 cents to finish at $1.6475 per lb, trading from $1.6451 to $1.711. Total volume stood around 23,700 lots, about a quarter above the 30-day norm, Thomson
Sterling posts sharp losses for wk
Reuters preliminary data showed. Cotton futures had risen over 22 per cent in a fresh rally that began in the middle of January, inspired by strong cotton prices in top consumer China and partly on tight deliverable stocks of cotton on the ICE Futures US exchange. Next week, analysts said the market may turn quiet in part because players from No. 1 cotton producer and consumer China will be taking off to celebrate the Lunar New Year. The key September cotton futures on the Zhengzhou Commodity Exchange was last done at 32,230 yuan per tonne,
down 100 yuan on the day. The market's attention would also turn toward a report on potential US 2011 cotton plantings. That forecast will be released on Feb. 4 by industry group the National Cotton Council of America at its annual meeting in San Antonio, Texas. A Reuters survey at the Beltwide Cotton conference this month had forecast US 2011 cotton plantings from 12.48 million to 12.53 million acres, a fiveyear high and an increase of around 15 per cent from last year's cotton sowings of 11.04 million acres. -Reuters
copper near record high
NEW YORK: Copper prices closed 1.5 per cent away from its record high on Friday, after data showing the US economic expansion picked up in the fourth quarter reaffirmed robust global demand prospects for the industrial metal. The copper market continued to feed off of the extended rally in tin prices, which climbed to another all-time peak at $30,040 a tonne -- their sixth in as many sessions -- as supply fears in major exporter Indonesia continued to spur bullish momentum. Copper for three-month delivery on the London Metal Exchange rose $194 to close at $9,635 a tonne, just $146 or about 1.5 per cent away from its Jan. 19 peak at $9,781. COMEX copper for March delivery firmed 3.45 cents to settle at $4.3730 per lb on the New York Mercantile Exchange. Copper prices continued to defy a bearish trend in LME inventories since early December. Those stocks went up by another 800 tonnes to 398,075 tonnes, their highest level since early September. Tin prices continued to fire on all cylinders, making it the best performing industrial metal this year with a gain of 10 per cent. Indonesia, which supplies nearly 30 per cent of the world's tin consumption, producing an estimated 105,000 tonnes in 2010, has been struggling with rain that hampered production last month. Tin closed at $29,600 a tonne, up from Thursday's last bid of $29,075. LME aluminum was last quoted at $2,472/$2,473 a tonne, up from $2,427 a tonne on Thursday. It was supported by a first-time confirmation from Deutsche Bank that around 2 million tonnes of the metal are tied up in financing deals. -Reuters
Asian currencies
Mostly log gains for wk, led by Korean won, peso BANKOK: Asian currencies advanced last week, led by South Korea's won and the Philippine peso, on optimism faster growth in emerging markets will spur global investors to add to holdings of regional assets. Overseas investors pumped a combined $1.4 billion into equities in Indonesia, the Philippines and Taiwan last week, according to exchange data. Asia's developing economies will expand 8.4 per cent this year and next, more than triple the 2.5 per cent annual growth of industrialized nations, the International Monetary Fund estimated on Jan. 25. "Asian currencies have strong links to fund inflows into their stocks," said Minoru Shioiri, chief manager of Mitsubishi UFJ Morgan Stanley Securities
Co. in Tokyo. "The global stock markets have been pretty solid recently, supporting sentiment for investors' risk appetite, which is good for Asian currencies." The won advanced 0.9 per cent last week to 1,113.83 per dollar. The Philippine peso rose 0.9 per cent to 44.103 and Singapore's dollar gained 0.3 per cent to S$1.2813. The won rose to a one-week high after the Bank of Korea said on Jan. 27 the nation's current-account surplus widened to $2.11 billion in December from a revised $1.93 billion the previous month. The currency completed its biggest weekly gain since December after the Federal Reserve said on Jan. 26 it will keep buying $600 billion of Treasuries through June, spurring speculation more
money will be channeled into fastergrowing Asian economies. The peso rose, snapping three weekly declines. The Philippine economy probably expanded 6 per cent in the fourth quarter from a year earlier after having grown 6.5 per cent in the previous three months, according to a survey before government data due on Jan. 31. Gross domestic product rose 7 per cent in 2010, which would be the fastest pace since 2007, according to the poll. Elsewhere, Indonesia's rupiah gained 0.3 per cent to 9,033 per dollar, Malaysia's ringgit rose 0.2 per cent to 3.0550 and China's yuan was little changed at 6.5861. Thailand's baht fell 1.3 per cent to 31.09 and India's rupee dropped 0.3 per cent to 45.7562. -Agencies
Egypt unrest pushes Canada $ below parity TORONTO: The Canadian dollar closed below parity with the greenback for the first time in a month on Friday as protests in Egypt sparked a flight to safety across global markets that boosted the US dollar. The currency hit its lowest level in more than a week, falling to C$1.0018 to the US dollar, or 99.82 US cents, during the session. "The general risk appetite waned obviously with the events in Egypt and it's changing perceptions a little bit on the US dollar," said Mark Chandler, head of Canadian fixed income and currency strategy at RBC Capital
Markets. While the fading risk appetite is negative for the Canadian dollar, the gain in oil prices helped keep a cap on the commodity currency's losses. "We would have been worse off throughout all of this if oil prices weren't up as well, but mostly people are taking a backseat to the US dollar as a result of the safe-haven bid," Chandler said. The currency closed the North American session at C$1.0011 to the US dollar, or 99.89 US cents, down from Thursday's close of C$0.9932 to the US dollar, or $1.0068. The Canadian dollar was 0.6
per cent lower on the week, closing below par with the greenback for the first time since Dec. 29. RBC said Friday's close above C$0.9977 exposes new Canadian dollar support levels of C$1.0031 and C$1.0208. Resistance is now seen around C$0.9910, followed by C$0.9837. The currency came under some pressure early in the day following solid US economic growth data that was seen supporting the US currency more than Canada's. Looking to Monday, the market will be watching Canadian economic growth figures for November. -Reuters
Brent near $100 as Cairo regime faces masses’ wrath NEW YORK: Brent oil hit a 28-month peak and closed in on $100 a barrel while US crude surged more than 4 per cent on Friday as unrest in Egypt rattled markets. US oil got an early boost from data showing the US economy gathered speed in the fourth quarter to regain its prerecession peak, helping narrow the discount to Brent crude after it touched a two-year high. But the Middle East became the focus as President Hosni Mubarak sent troops and armored cars onto the streets of Cairo and other Egyptian cities on Friday in an attempt to quell street fighting and mass protests demanding an end to his 30-year rule. "Whenever you have violence in the Middle East, you have (traders) buying on risk," said analyst Andrey Kryuchenkov at VTB Capital in London.
In London, ICE Brent crude for March rose $2.03 to settle at $99.42 a barrel and reached $99.74 intraday. It was the highest close since Sept. 26 2008, soon after the collapse of Lehman Brothers. Brent crude posted a 1.86 per cent weekly increase. May Brent and contracts for other months further out on the curve topped $100 a barrel intraday on Friday, and the Brent July contract settled at $100.18 a barrel. US crude oil for March delivery rose $3.70, or 4.3 per cent, to settle at $89.34 a barrel, with trade volume just above 1.38 million lots, according to Reuters data, the second highest to the record 1.432 million lots on April 13, 2010. US oil ended only up 23 cents for the week and was rebounding from a nearly 2-per cent loss on Thursday.
Total Brent trading volume was 570,155 lots traded, according to Reuters data, below the record of 726,578 contracts traded on Jan. 12. US oil's gains squeezed Brent's premium over its US counterpart to $10.08, based on settlement prices, after reaching a two-year high over $12 per barrel. Large volumes of crude at the Cushing, Oklahoma delivery point for U.S futures have weighed on the US benchmark this month, while supply concerns have supported Brent. Speculators cut their net long positions in US crude oil by 19 per cent in the week to Jan. 25, the Commodity Futures Trading Commission said on Friday, in a report released after settlement prices were posted. Oil prices fell to $86.19 a barrel on Jan. 25 from $91.38 the previous Tuesday. -Reuters
Gold rallies highest in 8wks as Egyptian troops hotfoot NEW YORK: Gold posted its biggest gains in eight weeks on Friday, gaining nearly 2 per cent as the prospect of unrest in Egypt spreading across the Middle East fueled a rush of safe-haven buying in the financial markets. The nearly $40-an-ounce jump in active trading revived investor interest in bullion, which is still set for its first monthly decline in half a year after investors fled the market on signs that the Euro-zone debt crisis was receding and the US economy was on a firmer recovery footing. After several days of unprecedented protests, the sight of armored cars in the streets of Cairo on Friday finally got the attention of global markets. Oil spiked by more than 4 per cent, the dollar rose sharply and Treasuries gained as investors feared the political instability could spread. "Confusion breeds contempt for
all investments other than gold. Clearly, money is flowing to gold as the ultimate safe haven ... because nobody knows how this situation is going to resolve itself," said Dennis Gartman, publisher of the Gartman Letter, a daily investment commentary. Gartman, a long-time gold bull who liquidated some of his position this month, said he did not expect Egypt's unrest to be over anytime soon and that gold could further benefit from the possibility of chaos spreading to other countries in the region. Spot gold rose 2 per cent to $1,338.39 an ounce by 1943 GMT, the largest one-day gain since early December. That reversed Thursday's 2.6 per cent slump as a run of better-than-expected economic data fueled concern over higher interest rates that could end gold's long bull run. Earlier in the session, gold touched a four-month low of
$1,308.00 an ounce. US gold futures for February delivery settled up $22.3 at $1,340.70 an ounce, with total volume topping 300,000 lots for a second day running, the highest since November. Spot silver rose 3.5 per cent to $27.82 an ounce. Despite Friday's rally, gold notched a four-week losing streak, its longest consecutive weekly decline in a year. Investment demand for gold has been soft this year, with holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, down another 3 tonnes on Thursday. Holdings of the world's largest silver-backed ETF, the iShares Silver Trust, also fell on Thursday. Platinum climbed 0.7 per cent to $1,793.50 an ounce and palladium gained 1.1 per cent to $810.72. Reuters
4 Monday, January 31, 2011
The Pharaoh’s Fate?
The Financial Daily International Vol 4, Issue 168
Publisher & Editor-in-Chief: Amir A. Ashary Editor: Shakil H. Jafri Executive Editor: Manzar Naqvi
E
gypt's military wants to survive, not to be swept away in what looks like the imminent Honorary Advisory Board collapse of President Hosni S. Muneer Hussain Rizvi Haseeb Khan, FCA Mubarak's ruling apparatus. Khurram Shehzad, CFA Asim Abbas Ashary, CPA So will the generals hasten his exit Prof. Zakaria Sajid (KU) as their Tunisian counter-parts did Akhtar M. Zaidi, FCA Zahid Bukhari SVP HBL (retd) in persuading former President Zine Dr. A. Hadi Shahid, FCA al-Abidine Ben Ali to flee the counIsmat Sabir Muhammad Arif try on Jan. 14 after weeks of Head office protests? The armed forces' response to the 111-C, Jami Commercial Street 11, Phase VII, DHA Karachi earthquake of unrest shaking Telephone: 92-21-35311893-6 Fax: 92-21-35388428 URL: www.thefinancialdaily.com Egypt for the past six days has been Email Address: editor@thefinancialdaily.com ambivalent. Troops now guard key installaLahore office tions after police lost control of the 24- Peshawar Block, Fortress Stadium, Lahore Telephone: 92-42-6675595 Fax: 92-42-6664349 streets, but have neglected to Email Address: editor@thefinancialdaily.com enforce a curfew and have often fraternised with protesters, rather than confronting them. Soldiers stood by tanks sprayed with slogans like "Down with Mubarak. Down with the despot. Down with the traitor. Pharaoh out of Egypt. Enough." Asked to explain, one soldier said: "These are written by the people. It's the views The telephonic conversation between PML-N of the people." Mubarak, clinging to power as his Quaid Mian Mohammed Nawaz Sharif and US legitimacy vaporises, on Saturday Ambassador to Pakistan Cameron Munter con- named his intelligence chief, Omar a former military man, cluded on a sentence that has been quoted "I Suleiman, as vice-president, a post vacant for can do nothing as the matter is currently being 30 years. heard in the court." Ambassador Cameron told He also appointed former airforce commander Ahmed Shafiq as prime Nawaz Sharif that Pakistani government minister after sacking the entire should hand US consulate worker, Raymond cabinet. it remains to be seen whether Davis, over to US because he possesses diplo- theButmilitary men now in charge will matic immunity being an employee of US keep the 82-year-old Mubarak in Consulate. Mian Sahib, declining US envoy's power, or decide he is a liability to Egypt's national interests -- and demand, replied that loss of three precious lives their own. of Pakistani citizens had deeply hurt the entire Paul Salem, director of the Endowment's Middle East nation, adding that only court could come up Carnegie Centre in Beirut, noted that the with ultimate judgment on the issue. "whole ship of state" foundered in Almost similar responses have come from earlier upheavals, such as the 1979 overthrow of Iran's shah or the Foreign Office and Punjab Governor. The ouster of Iraq's Saddam Hussein by immediate response of Foreign Office US invaders in 2003. "Events in Tunisia have shown Spokesman was that the Punjab Police was quite the opposite," he wrote in a handling the investigation and its report was commentary. "Indeed, the army realised that to save itself it had to awaited. He also said that the matter of killing
‘Water is Black’ or ‘Body of Lies’
of three Pakistanis in Lahore involving a US functionary was being trialed in the court of law, the legal process should be respected and must not be talked about as it's sub judice. Governor Punjab Sardar Latif Khosa described killing of youths by the American citizen a tragic incident. He said investigations into the matter were underway so he would not talk more on the issue. Khosa said he had already issued instructions to IG and CCPO Lahore to deal with the matter, regardless of any kind of pressure. Recapping these statements published in the local print media is aimed at letting the public know that the US is putting pressure on Pakistan for the release of a person accused of killing two persons. According to media reports Raymond David was among four people who were detained by the security personnel near Sherpao Bridge in Lahore on December 9, 2009, when they tried to enter the Cantonment area in a vehicle with tinted glasses. They were armed with sophisticated weapons. Subsequently on the intervention of the US consulate these persons were released. The point to be noted is that according to Division Superintendent Police, Civil Lines, Umer Saeed arrested US Consulate employee was not carrying any licence for the weapon recovered from his possession. No member of a diplomatic mission is allowed to carry arms but security personnel are permitted to do so and that too after informing the local security authorities in advance regarding their movement. It has also been reported that the Prado used by David's other colleague carried registration number (LZN-6970), originally issued to a Suzuki Cultus car. Apparently, the case looks a little more complicated than an employee of the US Consulate opening fire in self defense. Therefore, both the governments are suggested to abstain from bringing the debate into the media and let the court of law decide the case prima facie. Exerting pressure can weaken position of both the countries, who are partners in war on terror.
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.
send the ruler away rather than stand by him. "The lesson that getting overly involved in politics might weaken military institutions rather than strengthen them is a lesson that was learned by most military establishments around the world in past decades -- including the Turkish military. "We hope it is being learned among Arab military officials as well, particularly in Egypt," Salem wrote. HEART OF POWER Egypt's sprawling armed forces --
diplomatic cables say have grown into a vast force of 1.4 million since the failed Islamist revolt of the 1990s. Yet the crowds flooding the streets clearly have no desire to see Mubarak's three decades of authoritarian rule replaced by a military line-up featuring his closest cronies. Mubarak met his top commanders on Sunday, state television showed, in another indication that he sees the military as his only hope as the other pillars of his establishment crumble. His widely discredited political machine, the National
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So will the generals hasten his exit as their Tunisian counter-parts did in persuading former Zine al-Abidine Ben Ali to flee the country on Jan. 14 after weeks of protests?
the world's 10th biggest and more than 468,000-strong -- have been at the heart of power since army officers staged the 1952 overthrow of the monarchy.
Democratic Party, symbolically went down in flames when demonstrators torched its Cairo headquarters on Friday. A business elite, seen as the main
Paul Salem, director of the Carnegie Endowment's Middle East Centre in Beirut, noted that the "whole ship of state" foundered in earlier upheavals, such as the 1979 overthrow of Iran's shah or the ouster of Iraq's Saddam Hussein by US invaders in 2003 All four Egyptian presidents since then have come from the military, now led by Field Marshal Mohamed Hussein Tantawi, 75. It benefits from about $1.3 billion a year in US military aid. Egyptians tend to revere the military, less associated with daily repression than the police and security agencies, which leaked US
beneficiary of Egypt's liberal economic reforms, can offer no bulwark against the outpouring of anger fuelled by the government's failure to listen to popular political, economic and social grievances. NO SCRUTINY OF MILITARY The military is notoriously opaque. Reporting on it remains taboo, even in the much more
vibrant media scene that has blossomed in Egypt in recent years. Little is known about its substantial land holdings, huge economic interests or budget. "The idea that the military remains a key political and economic force is conventional wisdom here," said a US diplomatic cable from July 2009 released by WikiLeaks on Friday. "However, other observers tell us that the military has grown less influential, more fractured and its leadership weaker in recent years," the cable from the US embassy in Cairo said. Nevertheless, the military may see its duty now as ensuring an orderly transition to an undefined new political order. Among the many imponderables of the extraordinary turmoil is a possible disconnect between the generals in Mubarak's circle and the sentiments of the soldiers on the streets. "It's one of those moments where, as with the fall of communism in Eastern Europe, it can come down to individual lieutenants and soldiers to decide whether they fire on the crowd or not," said Rosemary Hollis, Middle East expert at London's City University. The army quelled bread riots in Egypt in 1977 and halted a rampage by policemen over pay in 1986, but the scale of the past week's uprising across the country dwarfs those events. Until recently, most speculation about Egypt's military centred on its attitude to Mubarak's supposed -and often denied -- ambitions to hand over the presidency to his son Gamal, a businessmen and politician with no military background. Suleiman's appointment as vicepresident and the manifest popular hostility to Gamal have put that question to bed. Presidential elections are due in September, but many Egyptians are hoping the incumbent will be long gone by then. "Mubarak, Mubarak, the plane awaits," protesters chanted.-Reuters
Is Syria Next? Farid Ghadry
W
hen watching the riots in Tunisia and Egypt, the question on everyone's mind is, what outcome will these organic and popular uprisings will produce? The world may be witnessing a new dawn in the Middle East fostered by enlightenment or a new Egyptian government trailing behind Syria as the latest conquest the Mullahs of Iran can claim is the result of their wise policies. With Hezbollah's latest dismantlement of a Lebanese government, aided by the complicity of the Assad regime and an Egypt whose future remains uncertain, it is essential for US and European policy makers to view Syria as a clear and present danger rather than the country stabilizing the region. No matter what happens, Egypt is a changed country. If it falls in the "L" column, Syria and Iran will
play an essential role in supplying Egypt, as they did to Hezbollah, with the necessary tools to destabilize North Africa. This outcome will place a heavy military burden on Israel, the result of which may engulf the region with intermittent wars for many years to come. As the world watches images of Egypt erupting, similar images are being
Guardians of the Islamic Revolution) personnel residing permanently in Syria, we also witnessed them, mixed with Syrian Army Battalions, deploy in several cities around the country. Yet, the international media, and al-Jazeera especially, have gone dark on Syria. Instead of supporting a similar organic uprising by a people whose 65% of its citizens were born enslaved
“
and Americans will pay a dear price for. With Syria becoming free and falling into the hands of its people, a major supply line to Hezbollah and possibly Egypt will be disrupted. The fall of Syria might also save Egypt from a possible takeover by the Mullahs. This scenario is basked in pessimism but when was the last time the west received good news from the Middle East? Al-Hurra, a US-funded TV station, has been slow in responding to any threats affecting the Syrian regime. Why? Because planted within its Virginia offices are sympathizers and supporters of Assad and Hezbollah. The last time alHurra broadcasted a negative story on Syria was in 2005 due to pressure from the Bush administration.
The world may be witnessing a new dawn in the Middle East fostered by enlightenment or a new Egyptian government trailing behind Syria as the latest conquest the Mullahs of Iran can claim is the result of their wise policies
reproduced in Syria. We have witnessed today many demonstrations in Damascus, Aleppo, and Qamoshli. With 10,000 IRGC (the Army of the
living in total misery, the world seems oblivious to the pain Assad inflicts on our people. I believe this is a major mistake. One that Syrians, Israelis, Lebanese,
If al-Hurra covers the demonstrations happening in Damascus, it will encourage Syrians to rise against Assad. And while many pundits and experts will capitalize on Assad's propaganda that his alternatives are hardcore Islamists, the reality is that Syrians are mostly secular people. The Syrian Muslim Brotherhood cannot possibly muster more than 10% of the votes but the mere thought that some analyst could be wrong has frozen our intellect to the point where we view Assad's evil as a stabilizing factor. The question becomes: Are you really willing to bet Egypt on Assad's stability? The time has come for true leadership in the region. Writer is a SyrianAmerican who co-founded the Reform Party of Syria (RPS) dedicated to freedom and human rights in his native country, blogs at ghadry.com. The opinions expressed are his own.Reuters
Ray of Hope for Europe Hugo Dixon
T
he eurozone crisis may be close to resolution. There is certainly optimism among policymakers at the World Economic Forum in Davos that a comprehensive deal - involving more discipline by peripheral nations and more help from rich nations - could be put together in coming weeks. If so, the hot phase of the crisis could be over and even Greece would have a fighting chance of getting out of the woods. There is still no deal. But the stars seem to be coming into alignment. Germany, the zone's paymaster, clearly realises that it has a strong interest in the single currency holding together - and will do what is needed to make that happen. Peripheral nations also seem to be willing to go an extra mile to give Berlin enough air cover to sell further help to the German people. The basic bargain would involve more generous terms for loans to indebted countries, especially Greece, balanced by hard-and-fast promises not to run up debts in the future. The countries are discussing some form of "debt brake", a provi-
sion embedded in the German constitution which forces it to balance its budget in the medium term. Such self-denial could, indeed, be a healthy mechanism for all countries to adopt. Meanwhile, two changes could be
debt in the secondary market at a discount and pass the benefit onto Athens. If, say, a quarter of its debt could be acquired at a 20 per cent discount, the peak ratio would fall by 8 per centage points. Not huge, but helpful. More importantly is the
There is still no deal. But the stars seem to be coming into alignment. Germany, the zone's paymaster, clearly realises that it has a strong interest in the single currency holding together - and will do what is needed to make that happen. Peripheral nations also seem to be willing to go an extra mile to give Berlin enough air cover to sell further help to the German people. made to make even Greece's debt burden - which is officially forecast to peak at just under 160 per cent of GDP - more bearable. The first would be to buy back chunks of its
idea of cutting the interest rate on the debt. If the country was able to fund itself at below 5 per cent, the annual interest payment would be below 8 per cent of GDP.
Even with such a package, Greece would still face a massive uphill struggle to boost its competitiveness. It would still need to push through aggressive moves to tackle rampant tax evasion. And it would still need to punish those who have looted the public purse in recent years - otherwise, the general population will not be willing to endure the years of hardship ahead. But there is a narrow path the country could tread back to long-term health. It will also be important to stop further dominoes falling, especially Spain. Madrid had a golden opportunity earlier this week to draw a line in the sand by coming up with its own comprehensive solution for its troubled savings banks, the cajas. It flunked it by saying that a maximum of 20 billion euros would be needed - significantly less than the market consensus. But it is not too late to remedy the error. Spain's eurozone partners should pressurise it to make crystal clear that there is more money if needed. If a proper clean-up of the region's troubled banks is also part of a comprehensive solution, the eurozone will indeed be able to look forward to better times.-Reuters
5
Monday, January 31, 2011
EU stocks retreat on UK economy, riots in Egypt
Asian stocks log gains for week as corporate earnings climb Weekly Review
KSE gets nowhere in wk for rate-fright
KSE-100 Index Opening Closing Change % Change Turnover (mn)
12,431.91 12,462.70 30.79 0.25 586.24
LSE-25 Index Opening Closing Change % Change Turnover (mn)
3,839.59 3,849.50 9.91 0.26 26.87
ISE-10 Index Opening Closing Change % Change Turnover (mn)
3,058.92 3,055.77 3.15 0.10 0.45
Major Gainers
Symbol
Close
Change
NESTLE 3,293.75 UPFL 1,216.99 RMPL 2,320.00 IDYM 234.95 SHEZ 175.46
434.03 101.99 57.29 26.05 23.20
Nawaz Ali
Major Losers
Symbol
Close
Change
SIEM 1,135.00 ULEVER 4,546.28 ILTM 115.00 COLG 977.47 LAKST 277.01
-90.60 -56.34 -16.00 -15.23 -12.89
Top 5 Volume Leaders
Symbol LOTPTA ANL FFBL FFC JSCL
Close Vol (mn) 15.53 11.65 41.19 152.77 11.73
142.37 59.75 57.75 21.06 16.26
Active Issues Plus Minus Unchanged
165 242 16
Sector Updates FERTILISER
NEW YORK: A pair of traders work on the floor of the New York Stock Exchange.-Reuters
Wall Street weekly outlook
000 tonnes
Urea Offtake (Jan to Nov 10) 5,463 Urea Offtake (Nov 10) 845 Urea Price (Rs/50 kg) 870 DAP Offtake (Jan to Nov 09) 121 DAP Offtake (Nov 10) 152 DAP Price (Rs/50 kg) 3,137
AUTOMOBILE ASSEMBLER PAK SUZUKI MOTOR Units Production (July 10 to Nov 10) Sales (July 10 to Nov 10) Production (Nov 10) Sales (Nov 10)
33,929 32,092 7,087 6,813
INDUS MOTOR CO Production (July 10 to Nov 10) 20,987 Sales (July 10 to Nov 10) 20,375 Production (Nov 10) 3,974 Sales (Nov 10) 3,753
HONDA ATLAS CAR Production (July 10 to Nov 10)6,626 Sales (July 10 to Nov 10) 6,247 Production (Nov 10) 1,145 Sales (Nov 10) 1,075
DEWAN FAROOQ MOTORS Production (July 10 to Nov 10) 186 Sales (July 10 to Nov 10) 70 Production (Nov 10) 0 Sales (Nov 10) 0
BANKING SECTOR Scheduled bank (Rs in mn) Deposit (December 3,10) 4,824,464 Advances (December 3,10) 3,050,639 Investments (December 3,10) 1,916,917 Spread (October 10) 7.49%
OIL MARKETING CO (000 tons) MS (Jul 10 to Nov 10) MS (Nov 10) Kerosene (Jul 10 to Nov 10) Kerosene (Nov 10) JP (Jul 10 to Nov 10) JP (Nov 10) HSD (Jul 10 to Nov 10) HSD (Nov 10) LDO (Jul 10 to Nov 10)) LDO (Nov 10) Fuel Oil (Jul 10 to Nov 10) Fuel Oil (Nov 10) Others (Jul 10 to Nov 10) Others (Nov 10)
PRICES (Ex-Refinery) MS (1 Dec 10) MS (1 Nov 10) MS % Chg Kerosene (1 Dec 10) Kerosene (1 Nov 10) Kerosene % Chg JP-1 (1 Dec 10) JP-1 (1 Nov 10) JP-1 % Chg HSD (1 Dec 10) HSD (1 Nov 10) HSD % Chg LDO (1 Dec 10) LDO (1 Nov 10) LDO % Chg Fuel Oil (1 Dec 10) Fuel Oil (1 Nov 10)
932 186 66 12 589 124 2,792 612 26 4 3,641 572 3 1
Rs 45.15 44.53 1.39% 52.04 51.25 1.54% 52.27 51.48 1.53% 55.20 54.24 1.77% 50.52 49.51 2.04% 43,019 42,046
Earnings, jobs, Egypt, on invstor radar NEW YORK: US stocks may struggle to return to firmer footing this week if anti-government riots in Egypt destabilize the Middle East, keeping investors on edge. Cautious trading could also come if earnings don't outperform and erode optimism about profits. The government's January jobs report on Friday will highlight the week's economic data, as investors look to see if the unemployment rate continues to fall as it did in December. Market volatility skyrocketed on Friday as indexes tumbled, with the VIX index, the market's fear gauge, up 24 per cent, its biggest daily percentage jump since May 20. Worries that Egypt's unrest could spread to other countries in the Middle East, home to the world's top oil exporters, caused investors on Friday to pull out of stocks and into bonds and other safer assets. US crude futures settled more than 4 per cent higher on Friday. "As long as people are worried about political unrest in the Middle East, it will be weighing on the market," said David Kelly, chief market strategist for JPMorgan Funds in New York. "This story isn't just going to end overnight." But "it could well turn out to be a short-lived correction, and it would be dangerous to try and time this thing," Kelly said, noting that his longerterm outlook for stocks remains bullish. Analysts had been forecasting a pullback in the market for weeks, given the recent sharp gains, and said the Egypt news
could be an excuse for some investors to sell. The Standard & Poor's 500 index is still up 18 per cent since the start of September, roughly when the current rally began. The Dow Jones industrial average snapped an eight-week streak of gains with Friday's close, and the S&P 500 and Nasdaq also ended with losses for the week. The Nasdaq fell more than 2 per cent on Friday while the S&P and Dow both were down more than 1 per cent. Monday could see a bounceback after Friday's losses, followed by more consolidation, said Matt McCormick, portfolio manager at Cincinnatibased Bahl & Gaynor Inc, which has $3.2 billion in assets. "My recommendation for clients is that if you have profits, especially in lower-quality names that have benefited from QE2 (quantitative easing), now is the time to take profits and look at blue chip names that haven't gained as much," he said. Among key support levels traders are eyeing are 1,271 and 1,263 on the S&P 500, according to Craig Peskin, cohead of technical analysis research at MF Global in New York. Optimism about fourthquarter earnings helped lift stocks in recent weeks, but the latest batch of reports disappointed investors, including Ford Motor Co and Amazon.com. The majority of companies continue to beat expectations, though, and analysts will watch to see if that trend holds. Of the
207 companies in the S&P 500 that have reported earnings, 71 per cent have beaten analysts' expectations, according to Thomson Reuters data. This week, 102 S&P 500 companies are expected to report, including Dow Chemical Company and United Parcel Service. "The earnings picture is still a good picture," Kelly said. "There were some disappointments today, but I don't think that really changes that." He sees stronger earnings and an improving economy as the main factors benefiting stocks in the longer term. The high US unemployment rate has been the biggest problem for the economy. The rate fell in December to 9.4 per cent from 9.8 per cent the prior month, but economists see slow progress ahead for job gains. Nevertheless, the US economy is growing more rapidly. The Commerce Department reported Friday that gross domestic product rose at a solid 3.2 per cent annual rate in the final three months of 2010. But the bigger driver for stocks is likely to be Egypt, analysts said, given the uncertainty created in the market. "The perception is that risk is elevated. Who knows how this ultimately will play out," said Paul Herber, portfolio manager at Forward Frontier in San Francisco. "This is something that began in Tunisia and now spread to Egypt. There are other countries in a very similar position. So people are taking money off the table and going to safe areas," he said. -Reuters
KARACHI: Karachi Stock Exchange (KSE) turned out flat with low investor participation ahead of State Bank of Pakistan's monetary policy statement. Despite some strong corporate result announcements investors remained on the sidelines and booked gains fearing discount rate hike. The benchmark KSE 100Index was up by 30 points to close at 12,462 points, KSE 30-Index grew by 18 points to close at 12,152 points and KSE All-Share index rose by 13 points to close at 8,639 points. Index touched the highest level at 12,557 points and the lowest level at 12,348 points during the week. The result announcement season kicked off with PPL posting higher than expected EPS (Rs13.9) for 1HFY11. Amongst other key announcements, FFBL, NRL, and ATRL also posted higher than expected results, while LOTPTA, FFC, APL, and POL results were inline with the street expectations, said Sana Hanif, an analyst at JS Global Capital. All the key sectors including banks and oil/gas underperformed while auto sector too remained in low gear after the Federal Cabinet gave approval to increasing the age limit of imported cars up to 5 years. Also, despite healthy results announced by FFC/FFBL and a rise in DAP price by Rs100 per bag by Engro, investors sold fertiliser stocks to get gains. The week began with some bearish activities on Monday as investors preferred to draw
profits being wary of monetary policy statement and falling international oil prices. But market managed to bounce back the next day on good corporate results announcement of fertilizer companies and hopes of some better corporate results in the coming days. However, despite some strong corporate result announcements market remained somewhat dull and rangebound as investors remained on the sidelines and booked profits fearing a ratehike. The State Bank of Pakistan was set to announce monetary policy for the next two months on Jan 29 and according to experts central bank may increase the key discount rates due to higher inflation and excessive government borrowing. But surprisingly, central bank kept the interest rates unchanged at 14 per cent. Foreign investors remained as net-buyers doing a net-buying of $6.3 million during the week while on the local side individual investors were the major net-sellers by offloading shares worth $7.7 million. Investor participation was limited throughout the week as 586 million shares traded during the week which is 576 million shares less than a turnover of 1,162 million shares a week earlier. Average daily turnover stood at 117 million shares declining by 115 million from an average volume of 232 million shares during the previous week. Out of total 423 active issues 242 declined and 165 advanced while 16 remained unchanged.
Gulf markets
Drop but bargain hunters bet on rebound DUBAI: Egypt unrest spurred panic selling on most Gulf Arab markets on Sunday, but bargain hunters bet on a quick rebound, with regional governments seen more secure than those of North Africa and unlikely to suffer similar turmoil. Egyptian protesters are on the streets again in central Cairo, demanding President Hosni Mubarak step down while security forces struggled to contain looters. "Mubarak's predictability has long been counted on by the West, and with that on the verge of disappearing, investors and politicians around the region are nervous," said Akram Annous, MENA strategist at Al Mal Capital. "And rightfully so, Egypt's 80 million population and geographical location make it the most important country as far as providing balance and order in the Arab world." Cairo's bourse was shut on Sunday after falling 16 per cent in two days last week, but the Dubai, Qatar and Oman indices all made their largest declines since May 25, while Abu Dhabi's 3.7 per cent fall was its biggest in 14 months. "The first reaction is to sell and think later," said Majed Azzam, AlembicHC real estate analyst. "In the longer-term, foreign investors will expect a higher return from this region to reflect increased political risk and the cost of raising capital would rise." Yet many Gulf Arab benchmarks ended near their Sunday intraday highs, indicating that buyers returned at lower prices and some traders predict stocks will rebound on Monday. "Markets have already panicked across the board, and I don't think it is warranted," said Al Mal's Annous. "I view UAE and Qatar as winners precisely because their governments are stable and well liked by their native population. "I expect capital flight to accelerate in North Africa, but...I wouldn't be selling Qatar, UAE or Saudi Arabia because of what is happening in Egypt."-Reuters
Dhiyan
LOSSES LOOK LASTING Tariq Hussain Khan, Head of Portfolio Management United Capital Profit-taking is likely to continue in the market as it’s in the overbought region and bluechip stocks sit doubly inflated. Index has a strong support at 12,350 points and if it manages to sustain thereabouts then we might see a rally in the coming days on any positive development regarding Margin Trading System (MTS). Discount rate status quo announced last week would certainly prove mighty good for market. Investors are advised to go for E&P, OMCs, fertiliser, and cement sectors stocks. Correction would put stay today as well.
Farhan Mansuri, VP Capital Markets Arif Habib Limited Drawing strenght from an unexpected rate-hold by SBP, market would put up a an overwhelming show today. The bullish activities are expected to stay course in the coming days on the anticipation of strong corporate result announcements. These would also trigger the market therefore index can touch 13,000 points level soon. Continued foreign interest would also support the market. Invest in those stocks which have already announced good payouts or those which are expected to do so. POL, ENGRO, APL, UBL, and DAWH are among such scrips.
6
Monday, January 31, 2011
Market
KSE 100 Index
Symbols
Volume
586,241,986
Value
24,587,850,883
Trades
326,488
Advanced Declined Unchanged Total
165 242 16 423
Current High Low Change
All Share Index
12,462.70 12,557.84 12,348.40 h30.79
Current High Low Change
OIL AND GAS
Paid up Cap(mn)
Company
PE
Open
High
High Low 1,620.55 1,580.52 Total cos Defaulter cos P/BV (x) ROE (%) 3.76 32.54 Low
Close Chg
Last 60 days High Low
Volume
691
7.07 391.44
401.00 387.00 391.12 -0.32
1243641 401.00
Attock Refinery
853
5.68 141.31
143.40 133.75 139.36 -1.95
6785507 146.90
Mari Gas Company
735 17.71 130.74
136.95 130.05 130.72 -0.02
558080
141.65
National Refinery
800
292.01
2010 Div BR (%) (%) 300
2011 Div BR (%) (%)
20B115.00
Open
High
Low
Close Chg
Volume
Last 60 days High Low
RSI (14-day)
45.82
Total Assets (Rs in mn)
15,343.38
74.13
73.99
70.01
70.50 -3.63
57805
76.65
68.00
40
-
-
-
MA (10-day)
3.04
Total Equity (Rs in mn)
(7,218.97)
PNSC
1321
40.59
37.00
37.44
36.52
37.34
23257
39.45
32.36
15
-
-
-
MA (100-day)
2.16
Revenue (Rs in mn)
MA (200-day)
2.00
Interest Expense
1st Support
2.81
Loss after Taxation
2nd Support
2.68
EPS 10 (Rs)
(4.176)
1st Resistance
3.08
Book value / share (Rs)
(19.71)
2nd Resistance
3.22
PE 11 E (x)
Pivot
2.95
PBV (x)
99.60
-
-
-
-
117.00
31
-
-
-
-
795971
333.89
218.00
200
-
-
1845796 185.00
152.20
55
- 15.00
-
Pak Petroleum
218.50 210.00 210.78 -6.57
4825210 229.80
184.00
90
20B 50.00
334.97 324.75 328.91
1.35
7264969 341.50
239.00
255
120.50 109.01 113.18 -5.69
1212458 122.22
74.51
-
P.S.O
- 118.87
1715
5.15 304.43
Shell Gas LPG
226
Shell Pakistan
685 10.78 215.81
-
32.61
306.80 300.25 304.44 34.24
32.05
0.01
3113171 317.79
262.70
-
80
-
-
-
32.15 -0.46
11047
39.89
32.00
-
-
-
-
217.99 209.00 210.17 -5.64
93143
222.00
182.05
40
-
-
-
0.34
AUTOMOBILE AND PARTS Open 1,303.53 Turnover 1,515,869 P/E (x) 4.80 Company
Paid up Cap(mn)
PE
High Low 1,326.75 1,280.65 Total cos Defaulter cos P/BV (x) ROE (%) 1.22 25.35
Open
High
Low
144 5.62 79.00 101 5.97 195.70 247 33.90 29.77 626 9.22 131.97 890 2.20 56 4.70 191.00 598 20.47 24.01 450 3.33 4.75 200 7.42 4.75 1428 - 12.10 786 6.70 294.36 823 10.64 68.88 150 4.29 23.09 117 1.89
80.00 202.00 37.97 138.50 2.36 204.25 25.45 4.98 5.00 12.32 302.00 69.95 23.40 1.95
73.33 195.00 31.25 122.00 1.93 183.00 23.50 4.70 4.20 11.50 290.02 65.50 21.85 1.31
Close Chg
Close 1,292.93 Listed cap 6,768.53 mn Payout (%) 20.42
Volume
Change % Change -10.60 -0.81 Market cap 200-Day High 47,530.15 mn Div Yield (%) 200-Day Low 4.26 -
Last 60 days High Low
CHEMICALS Performance of SR Chemicals Index Open High Low 1,590.04 1,630.17 1,569.50 Turnover Total cos Defaulter cos 242,271,336 P/E (x) P/BV (x) ROE (%) 9.74 3.41 35.00
Close 1,592.25 Listed cap 52,251.88 mn Payout (%) 48.81
Change % Change 2.20 0.14 Market cap 200-Day High 352,170.20 mn Div Yield (%) 200-Day Low 5.01 -
Paid up Cap(mn)
PE
Open
High
Low
Close Chg
Volume
Last 60 days High Low
3924
9.33
24.26
26.73
24.30
25.75 1.49
312497
26.73
BOC (Pak)
250 12.79 100.01
101.00
93.00
93.12 -6.89
14973
Clariant Pak
273
7.05 180.47
193.00 181.50 184.36 3.89
79100
1203
8.49 201.63
210.00 200.30 204.75 3.12
673352
215.00
Company Agritech Limited
Dawood Hercules Dewan Salman
3663
Engro Corporation Ltd Fatima Fertilizer
-
3.10
3277 11.65 211.47 22000
-
12.28
Fauji Fertilizer
6785
9.40 152.63
Fauji Fert. Bin Qasim
9341
7.77
ICI Pakistan
1388
8.43 152.33
Lotte Pakistan
15142
Mandviwala Nimir Ind Chemical
5.71
14.71
12.45
2.81 11.66
2.91 -0.19 11.82 -0.46
157.90 150.80 152.77 0.14 42.75
15
-
-
-
-
-
-
-
165.73
40
-
-
-
FOOD PRODUCERS
-
Performance of SR Food Producers Index
4.24
1.47
-
10112738 222.80
174.70
40
-
-
-
9.16
-
-
-
-
106.01
130
25B
-
-
4398603
12.64
21063481 157.90 57746699 43.99
30.31
52.5
-
-
-
1713085 158.49
123.50
55
-
-
-
142372506 16.49
10.08
5
-
-
-
15.53 0.82
74
-
1.48
1.87
1.16
1.68 0.20
43158
2.50
1.01
-
-
-
-
-
1.79
1.93
1.69
1.73 -0.06
2236464
2.74
1.36
-
-
-
-
139.40
101.00
25
5B
Sitara Chem Ind
214
551 14.46 90
9.83 122.00 7.44
122.00 112.50 119.94 -2.06
107385
-
-
13.52
13.57
13.20
13.30 -0.22
279950
14.69
12.08
-
-
-
-
37.92
39.00
36.75
38.70 0.78
14066
41.99
32.00
50
-
-
-
FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,181.72 Turnover 350,294 P/E (x) 5.55 Company
Paid up Cap(mn)
High Low 1,211.59 1,073.37 Total cos Defaulter cos P/BV (x) ROE (%) 0.41 7.47
Close 1,080.42 Listed cap 1,186.83 mn Payout (%) 25.28
PE
Open
High
Low
Close Chg
Volume
Change % Change -101.30 -8.57 Market cap 200-Day High 2,994.87 mn Div Yield (%) 200-Day Low 4.55 -
Last 60 days High Low
2010 Div BR (%) (%)
2011 Div BR (%) (%)
Century Paper
707
-
17.76
18.37
16.32
16.49 -1.27
304726
19.69
15.28
-
-
-
-
Security Paper
411
6.97
43.50
44.39
38.86
39.04 -4.46
44077
47.70
38.00
50
-
-
-
Company
Paid up Cap(mn)
Adam Sugar XD AL-Noor Sugar XD Bawany Sugar Chashma Sugar XD Crescent Sugar Dewan Sugar Fecto Sugar Habib SugarXDXB Habib-ADM Ltd J D WSugarXDXB Mehran SugarXDXB Mirza Sugar XD National Foods Noon Sugar Quice Food S S Oil Shahmurad Sugar XD Shakarganj Mills Tandlianwala
58 186 87 287 214 365 146 750 200 539 157 141 414 165 107 57 211 695 1177
Company
Paid up Cap(mn)
PE
Open
High
Low
Close Chg
Close 1,048.95 Listed cap 3,596.11 mn Payout (%) 30.91
2010 Div BR (%) (%)
565
3.20
28.56
30.62
27.41
30.59 2.03
675
-
2.72
2.89
2.55
2.60 -0.12
555
9.16
15.13
16.51
13.30
-
-
1199 18.60
56.42
58.75
51.00
51.15 -5.27
315694
62.20
44.00
55
20B
-
-
11.50
14.98
12.50
14.43 2.93
11415
14.98
5.61
-
-
-
-
Huffaz Pipe International Ind
310
-
15.70
14.50
14.65 -0.48
24.00
30
2.50
-
2011 Div BR (%) (%)
Crescent Steel
Metro Steel
1405915 30.62 3.29
19897
Open
High
Low
4.76 1.28 3.63 0.66 5.10 11.11 2.45 1.90 21.18 1.11 7.20 0.24 3.31 0.40 354.91
15.50 49.00 5.02 10.00 7.00 3.70 30.00 23.37 12.15 70.99 57.90 4.89 56.04 11.85 2.90 3.00 9.75 5.45 41.75
16.00 53.40 6.43 11.20 6.99 3.95 32.23 23.48 12.44 72.90 60.00 5.04 58.88 11.50 3.50 3.00 10.75 6.30 42.06
14.50 48.05 5.00 9.00 6.25 3.15 28.00 22.16 11.50 68.00 56.51 4.10 55.05 9.21 2.90 2.80 9.20 5.00 38.00
- 10.00
-
-
-
-
-
Open 1,094.33 Turnover 838,115 P/E (x) 2.74 Company
Company
Paid up Cap(mn)
PE
Open
High
Low
Close Chg
1828
-
3.09
3.35
3.00
3.09 0.00
866
6.97
182
Al-Abbas Cement Attock Cement
Close 970.47 Listed cap 54,792.74 mn Payout (%) 19.04
71782
3.98
Change % Change -4.49 -0.46 Market cap 200-Day High 68,237.99 mn Div Yield (%) 200-Day Low 2.89 -
60.18
61.00
55.04
55.04 -5.14
-
21.27
22.25
20.60
21.03 -0.24
34308
24.16
15.00
11.00
11.10
10.40
11.00 0.00
24999
12.75
10.25
-
-
-
-
1.81
1.96
1.66
1.70 -0.11
9971
2.49
1.50
-
-
-
-
Fecto Cement Flying Cement Ltd Frontier Ceramics Gharibwal Cement Haydery Const
1.66 -0.54
19359
3.49
1.50
-
-
-
-
-
948
-
3891
-
2.10
2.25
2.02
2.15 0.05
367533
3.10
1.43
-
-
29.81
30.09
29.02
29.73 -0.08
6702406
32.30
26.60
-
20R
-
-
5.00
5.07
4.79
4.90 -0.10
2427491
5.55
4.72
-
-
-
-
6933 14.85
1.66
-
- 122R
3651 123.88
DG Khan Cement Ltd Fauji Cement
2.70
50
-
956 25.00
2.20
55.04
-
982 13.08
Dandot Cement
65.99
- 100R
2011 Div BR (%) (%)
Cherat Cement
Dewan Cement
194772
2.80
2010 Div BR (%) (%)
Dadabhoy Cement
Berger Paints
-
-
502
3.65
7.01
7.50
7.00
7.00 -0.01
14097
8.20
5.80
-
-
-
-
1760
-
1.84
1.91
1.70
1.71 -0.13
215709
2.25
1.60
-
-
-
-
77
-
1.70
1.95
1.35
1.73 0.03
45327
4.00
1.18
-
-
-
-
2319
-
6.70
7.19
6.06
6.50 -0.20
12057
9.19
2.70
-
-
-
-
32
-
0.73
0.85
0.46
0.60 -0.13
Kohat Cement
1288
-
6.26
6.95
6.11
6.35 0.09
Lucky Cement
3234
6.63
72.29
74.50
70.75
73.76 1.47
Maple Leaf Cement
5261
1.27
Pioneer Cement
2.72
2.75
2.65
2.72 0.00
210398
0.99
82631 2424543 400830
0.25
-
-
-
-
8.70
5.92
-
-
-
-
79.98
70.75
40
-
-
-
3.30
2.65
-
-
-
-
2228
-
6.85
6.97
6.60
6.70 -0.15
130171
8.20
6.52
-
-
-
-
Safe Mix Concrete
200
-
6.88
7.43
6.15
7.43 0.55
69764
7.95
5.25
-
-
-
-
Shabbir Tiles
361
-
8.02
9.00
7.61
8.23 0.21
12869
9.60
6.30
-
-
-
-
GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 1,054.60 Turnover 1,373,444 P/E (x) 2.90 Company Cherat Papersack ECOPACK Ltd Ghani Glass MACPAC Films Merit Pack Packages Ltd
Paid up Cap(mn) 115
PE 2.57
Open 73.33
High 74.70
High Low 1,081.69 1,028.65 Total cos Defaulter cos P/BV (x) ROE (%) 1.27 43.91 Low 70.12
Close Chg 72.04 -1.29
Close 1,057.41 Listed cap 3,043.31 mn Payout (%) 15.55
Volume 115453
Change % Change 2.81 0.27 Market cap 200-Day High 39,641.46 mn Div Yield (%) 200-Day Low 5.36 -
Last 60 days High Low 83.23
46.02
2010 Div BR (%) (%) 20
25B
2011 Div BR (%) (%) -
-
230
-
2.60
2.80
2.16
2.66 0.06
228773
3.30
1.82
-
-
-
-
1067
4.94
52.93
54.86
50.50
53.75 0.82
52686
56.45
45.30
25
10B
-
-
389
-
3.39
47 78.95
26.11
844 70.48 129.08
19608
4.05
3.40
2.61
3.00 -0.39
31.58
25.50
31.58 5.47
406117
31.58
16.90
-
-
-
-
143.00 128.00 137.43 8.35
507968
143.00
101.00
-
-
-
-
Company AL-Ghazi Tractor
Paid up Cap(mn) 215
Dewan Auto Engineering 214
PE
Open
5.63 234.04 -
1.43
High
Low
Close Chg
2.40
237.00 231.10 235.07 1.69
1.22
1.03
1.30 -0.13
-
-
-
-
25448 122570
Last 60 days High Low 244.95 2.40
-
Change % Change 55.56 3.11 Market cap 200-Day High 269,868.41 mn Div Yield (%) 200-Day Low 0.68 -
Last 60 days High Low 20.50 54.00 6.73 15.47 7.15 5.59 55.00 36.50 13.00 92.50 68.49 7.18 75.50 14.84 3.50 3.89 13.50 7.88 42.52
13.00 42.00 1.21 9.00 5.00 1.50 28.00 22.00 11.50 68.00 52.60 4.10 41.12 9.00 2.02 2.80 9.00 4.06 29.03
2010 Div BR (%) (%)
2011 Div BR (%) (%)
25 50 10 25 25B 40 7010B 12.5R 35 20B 7.50 10 12 10 -
-
Close 1,096.73 Listed cap 3,763.71 mn Payout (%) 6.27
Close Chg
Volume
106 1219 231
3.59 2.54
5.50 14.63 20.30
6.75 14.85 21.74
5.20 13.99 20.25
6.32 0.82 14.26 -0.37 21.27 0.97
24536 656773 153964
Hussain Industries Pak Elektron Tariq Glass Ind
Change % Change 2.40 0.22 Market cap 200-Day High 5,187.79 mn Div Yield (%) 200-Day Low 2.29 -
Last 60 days High Low
2010 Div BR (%) (%)
11.49 15.88 22.50
17.5
5.20 12.90 15.90
10B -
2011 Div BR (%) (%) -
-
PERSONAL GOODS Open 1,002.44 Turnover 87,796,064 P/E (x) 6.18 Company
Paid up Cap(mn)
(Colony) Thal AL-Qadir Textile Amtex Limited Artistic Denim Azam Textile Azgard Nine Babri Cotton Bannu Woolen XD Brothers Textile Chenab Limited Chenab Ltd Pref Colony Mills Ltd Crescent Jute Crescent Textile D S Ind Ltd Dar-es-Salaam Dawood Lawrencepur Dewan Khalid Textile Dewan Mushtaq Textile Gadoon Textile XD Gulistan Spinning Hira Textile Mills Ltd. Ibrahim Fibres Ideal Spinning Idrees Textile J K Spinning Janana D Mal Kohinoor Ind Kohinoor Mills Kohinoor Spinning Kohinoor Textile Mehmood Textile Mian Textile Mohd Farooq Mukhtar Textile Nishat (Chunian) Nishat Mills Pak Synthetic Paramount Spinning Premium Textile Prosperity Ravi Textile Redco Textile Reliance Weaving Saif Textile Sally Textile Samin Textile Sapphire Fibre Sargodha Spinning Service Ind Shadman Cot Shahpur Textile Shahtaj Textile Shams Textile Taj Textile Thal Limited Treet Corp Yousuf Weaving Zephyr Textile Ltd
56 76 2594 840 133 4493 33 76 98 1150 800 2442 238 492 600 80 514 57 34 234 146 716 3105 99 180 184 43 303 509 1300 1455 150 221 189 145 1614 3516 560 174 62 185 250 213 308 264 88 267 197 312 120 176 140 97 86 334 307 418 400 594
PE
Open
1.01 8.00 9.43 4.13 6.32 23.05 0.36 2.64 - 11.87 0.48 11.69 0.50 13.56 0.60 3.02 2.00 4.02 2.37 1.24 3.48 19.00 1.86 3.40 46.28 40.41 0.15 2.01 0.18 8.48 0.78 71.07 1.21 6.60 0.73 3.99 4.02 48.97 0.73 8.29 4.02 3.66 0.92 6.15 0.24 14.50 1.67 2.90 0.37 1.25 3.75 5.06 0.80 67.20 0.66 0.95 0.53 1.96 23.64 5.76 67.06 4.22 9.49 0.80 9.50 0.51 30.50 1.06 13.98 1.39 0.61 0.63 9.00 0.43 4.70 0.21 4.00 5.33 6.00 1.06 124.70 0.68 2.70 7.88 232.79 2.62 10.60 0.38 0.29 - 19.40 0.76 26.45 0.08 5.37 119.01 9.31 57.85 0.56 1.74 4.61 3.70
High
High Low 1,014.82 995.56 Total cos Defaulter cos P/BV (x) ROE (%) 0.53 8.64 Low
Close Chg
1.44 1.00 1.37 0.36 9.00 6.50 8.00 0.00 4.32 4.02 4.15 0.02 23.98 22.26 22.75 -0.30 2.64 2.58 2.61 -0.03 12.84 11.40 11.65 -0.22 12.30 10.70 11.90 0.21 14.73 13.02 14.30 0.74 0.59 0.17 0.41 -0.19 3.15 2.90 3.08 0.06 3.00 2.00 2.98 0.98 2.89 2.20 2.57 0.20 1.27 0.93 1.16 -0.08 18.11 17.11 18.11 -0.89 1.89 1.64 1.75 -0.11 4.00 2.51 3.23 -0.17 42.00 38.94 39.34 -1.07 2.06 1.90 2.00 -0.01 8.65 5.86 5.86 -2.62 73.09 68.50 71.20 0.13 7.10 5.80 6.35 -0.25 4.14 3.80 3.89 -0.10 52.00 47.02 51.14 2.17 9.53 7.29 8.62 0.33 3.80 3.01 3.70 0.04 7.00 5.60 6.05 -0.10 15.60 14.15 14.45 -0.05 1.70 1.39 1.50 -0.17 3.80 2.00 3.10 0.20 1.69 0.90 1.01 -0.24 5.30 4.90 5.25 0.19 70.30 65.00 65.25 -1.95 0.66 0.32 0.50 -0.16 1.30 0.66 1.14 0.19 0.67 0.25 0.32 -0.21 24.16 22.91 23.55 -0.09 67.62 65.65 67.05 -0.01 12.50 9.37 12.50 3.01 10.99 8.50 10.99 1.49 31.99 31.49 31.99 1.49 14.40 13.10 13.80 -0.18 1.48 1.30 1.39 0.00 0.99 0.60 0.60 -0.01 9.45 8.70 9.01 0.01 5.39 4.58 5.39 0.69 4.35 3.95 4.30 0.30 6.95 5.51 6.40 0.40 124.70 113.99 113.99-10.71 3.84 2.86 3.50 0.80 234.99 228.01 230.09 -2.70 14.50 10.60 14.41 3.81 0.52 0.20 0.27 -0.02 20.29 19.20 19.40 0.00 25.13 23.00 23.00 -3.45 0.15 0.11 0.14 0.06 131.89 116.00 125.61 6.60 59.85 58.01 58.47 0.62 1.80 1.25 1.60 -0.14 4.50 3.45 3.50 -0.20
Close 1,002.13 Listed cap 47,070.70 mn Payout (%) 16.68
Volume
Change % Change -0.31 -0.03 Market cap 200-Day High 140,377.44 mn Div Yield (%) 200-Day Low 2.70 -
Last 60 days High Low
5191 1.90 8594 9.00 1271092 7.40 16965 24.59 8401 2.99 59754097 12.84 20265 17.85 12434 14.84 10707 1.49 110544 3.90 2003591 3.00 57938 3.20 84878 1.38 6604 23.99 264623 2.37 6200 4.38 11900 47.00 11510 3.75 265961 8.90 9697 73.09 215469 8.86 149400 4.47 176609 52.00 144394 9.53 20043 3.90 11523 9.50 7123 19.24 101571 2.00 5009 3.80 17535 1.81 89380 5.97 8657 70.30 27004 0.75 12009 2.08 172667 0.95 8943910 25.14 7806125 71.89 4591694 12.50 21988 11.10 6712 31.99 9120 15.50 212753 1.98 6000 1.45 28843 10.50 8578 6.85 27006 5.00 45647 6.95 5047 131.50 24477 3.84 11867 276.50 11016 14.50 139943 1.00 5116 20.29 60590 27.00 6000 0.56 282626 132.00 233249 63.30 98557 2.00 36427 4.90
2010 Div BR (%) (%)
0.52 4.05 10 4.00 30 19.10 20 1.32 7.5 9.20 8.10 - 15B 11.50 20 0.15 2.90 1.21 2.16 0.32 17.11 15 1.62 1.70 36.10 5 0.85 2.90 44.05 70 5.10 10 3.31 10 36.00 20 3.00 2.70 10 4.05 20 5B 13.25 1.10 1.52 0.16 5 4.82 51.46 60 0.32 0.50 0.14 20.25 15 50.25 25 45R 6.00 8.00 10 10B 25.00 50 13.00 30 1.26 0.55 8.50 25SD 3.90 3.57 10 5.11 - 100R 112.00 15 1.51 5 169.00 7.00 0.20 16.35 45 16.00 20 0.08 86.50 80 20B 44.28 1.00 3.01 -
2011 Div BR (%) (%) -
-
Performance of SR Pharma and Bio Tech Index
201.80 0.21
2010 Div BR (%) (%) 150 -
-
2011 Div BR (%) (%) -
-
Ghandhara Ind
213 10.66
12.50
12.44
11.26
11.51 -0.99
17929
13.50
10.55
-
-
-
-
132
7.40
59.86
62.30
59.05
61.83
10978
73.84
58.55
-
-
-
-
Millat Tractors XB
366
8.39 532.90
486982
568.40
472.00
650
25B325.00
-
555.00 530.00 544.87 11.97
High Low 1,119.56 1,079.41 Total cos Defaulter cos P/BV (x) ROE (%) 0.29 10.64 Low
Change % Change 31.97 2.06 Market cap 200-Day High 34,269.72 mn Div Yield (%) 200-Day Low 15.27 -
KSB Pumps
1.97
-
PHARMA AND BIO TECH
Close 1,585.78 Listed cap 1,336.62 mn Payout (%) 131.49
Volume
11489 37619 5603 16634 434786 49667 6177 122875 32857 12613 13811 8882 5680 85322 122500 7500 29250 8571 8250
High
INDUSTRIAL ENGINEERING High Low 1,608.56 1,544.20 Total cos Defaulter cos P/BV (x) ROE (%) 3.27 38.02
0.50 2.15 0.92 -0.70 -0.45 -0.36 2.23 -0.67 -0.15 -1.99 0.35 -0.63 0.72 -1.46 0.27 -0.20 -0.08 0.22 -2.71
Open
Performance of SR Industrial Engineering Index Open 1,553.81 Turnover 671,012 P/E (x) 8.61
2011 Div BR (%) (%)
Performance of SR Personal Goods Index
Last 60 days High Low
Volume
16.00 51.15 5.94 9.30 6.55 3.34 32.23 22.70 12.00 69.00 58.25 4.26 56.76 10.39 3.17 2.80 9.67 5.67 39.04
Volume
PE
Performance of SR Construction and Materials Index High Low 987.08 953.77 Total cos Defaulter cos P/BV (x) ROE (%) 0.47 7.10
Close Chg
Close 1,840.66 Listed cap 11,335.33 mn Payout (%) 30.57
Paid up Cap(mn)
CONSTRUCTION AND MATERIALS Open 974.96 Turnover 18,157,459 P/E (x) 6.59
20B 20B -
125.73
(0.15)
DSFL closed down -0.19 at 2.91. Volume was 42 per cent below average and Bollinger Bands were 34 per cent narrower than normal. The company's loss after taxation stood at Rs246.014 million which translates into a Loss Per Share of Rs0.67 for the 1st quarter of current fiscal year (1QFY11). DSFL is currently 45.3 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 volume flowing into and out of DSFL at a relatively equal pace. Trend forecasting oscillators are currently bearish on DSFL.
Pakistan Synthetics Limited
Fundamental Highlights As on Jun 30, 2010
RSI (14-day)
80.89
Total Assets (Rs in mn)
MA (10-day)
10.11
MA (100-day)
7.51
Revenue (Rs in mn)
MA (200-day)
7.36
Interest Expense
Total Equity (Rs in mn)
1,323.87 880.58 3,280.76 7.03
1st Support
11.90
Profit after Taxation
51.82
2nd Support
11.30
EPS 10 (Rs)
0.925
1st Resistance
12.80
Book value / share (Rs)
15.71
2nd Resistance
13.10
PE 11 E (x)
4.22
Pivot
12.20
PBV (x)
0.80
PSYL closed up 3.01 at 12.50. Volume was 514 per cent above average (trending) and Bollinger Bands were 58 per cent wider than normal. The company's profit after taxation stood at Rs41.538 million which translates into an Earning Per Share of Rs0.74 for the 1st quarter of current fiscal year (1QFY11). PSYL is currently 65.1 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 very strong flows of volume into PSYL (bullish). Trend forecasting oscillators are currently bullish on PSYL. Momentum oscillator is currently indicating that PSYL is currently in an overbought condition.
Silkbank Limited
Performance of SR Household Goods Index
Dost Steels Ltd
72958
High Low 1,866.97 1,751.20 Total cos Defaulter cos P/BV (x) ROE (%) 13.62 30.30
PE
Change % Change -36.18 -3.33 Market cap 200-Day High 10,048.53 mn Div Yield (%) 200-Day Low 8.78 -
Last 60 days High Low
Volume
90 100 60 20 150 10 -
137.50 (1,529.67)
HOUSEHOLD GOODS
Performance of SR Industrial Metals and Mining Index High Low 1,119.85 1,009.00 Total cos Defaulter cos P/BV (x) ROE (%) 1.16 33.10
2010 Div BR (%) (%)
Technical Analysis
Technical Analysis Open 1,785.10 Turnover 1,047,420 P/E (x) 44.95
INDUSTRIAL METALS AND MINING Open 1,085.12 Turnover 1,997,380 P/E (x) 3.52
65.75 152.70 15.00 96.00 1.20 145.00 21.00 4.42 4.01 10.90 230.00 65.50 17.92 1.31
75.00
41.19 -1.08
14.57
82.63 204.40 37.97 143.80 2.89 217.44 26.74 5.67 5.75 13.40 309.73 77.90 23.40 2.80
149.72
-
-
17244 35878 59913 28008 840954 5468 62153 67830 10195 72537 94352 169768 38926 12394
103.94
-
-
-4.86 4.32 8.20 0.78 -0.10 7.99 -0.26 0.05 0.00 -0.42 -0.86 -2.05 -0.10 0.06
209.98
153.00 145.50 149.69 -2.64 16.08
40.59
2011 Div BR (%) (%)
74.14 200.02 37.97 132.75 2.10 198.99 23.75 4.80 4.75 11.68 293.50 66.83 22.99 1.95
-
8144667
-
Agriautos Ind Atlas Battery Atlas Engineering Ltd Atlas Honda Dewan Motors Exide (PAK) General Tyre Ghandhara Nissan Ghani Automobile Ind Honda Atlas Cars Indus Motors Pak Suzuki Sazgar Engineering Transmission
20.26
1106
Sitara Peroxide Wah-Noble
42.27
3.25
217.25 208.12 212.07 0.60
2010 Div BR (%) (%)
2011 Div BR (%) (%)
Performance of SR Automobile and Parts Index
-
-100.00 -
-
Company
2010 Div BR (%) (%)
Fundamental Highlights As on Jun 30, 2010
PE
3.12
7.58 327.56
Change % Change -27.59 -3.63 Market cap 200-Day High 12,880.29 mn Div Yield (%) 200-Day Low 1.94 -
7.05
1.35
7.71 217.35
Close 731.85 Listed cap 3,242.17 mn Payout (%) 11.08
1092
330.38 310.00 326.34
350
High Low 759.32 726.47 Total cos Defaulter cos P/BV (x) ROE (%) 1.46 25.53
Paid up Cap(mn)
175.24 170.71 173.06
2365
Open 759.43 Turnover 81,062 P/E (x) 5.70
Pak Int Cont.Terminal
6.77 323.22
11950
Dewan Salman Fibre Limited
-
Oil & Gas Development 43009 11.71 171.71
Pak Refinery Limited
12,152.21 12,286.42 12,045.79 h18.19
Performance of SR Industrial Transportation Index
Close Change % Change 1,594.40 -4.96 -0.31 Listed cap Market cap 200-Day High 65,194.15 mn 1,224,147.01 mn Payout (%) Div Yield (%) 200-Day Low 55.94 4.84 -
Attock Petroleum
Pak Oilfields
Current High Low Change
8,639.53 8,703.15 8,575.78 h13.37
Alert ! Unusual Movements
INDUSTRIAL TRANSPORTATION
Performance of SR Oil and Gas Index Open 1,599.35 Turnover 27,748,993 P/E (x) 11.56
KSE 30 Index
Open 959.79 Turnover 476,426 P/E (x) 6.74 Company Abbott (Lab) Ferozsons (Lab) GlaxoSmithKline Highnoon (Lab) Sanofi-Aventis Searle Pak
Paid up Cap(mn) 979 250 1707 165 96 306
PE
Open
8.24 104.31 6.74 89.24 14.21 80.57 7.75 28.16 12.33 161.05 5.60 63.01
High
High Low 968.38 917.84 Total cos Defaulter cos P/BV (x) ROE (%) 1.50 22.31 Low
Close Chg
104.00 94.00 94.07 -10.24 90.50 88.10 89.26 0.02 81.99 78.24 79.02 -1.55 28.50 27.00 27.98 -0.18 164.99 152.09 155.02 -6.03 65.24 60.96 62.29 -0.72
Close 920.74 Listed cap 3,904.20 mn Payout (%) 44.54
Volume 104498 17593 43680 11623 6783 224504
Change % Change -39.05 -4.07 Market cap 200-Day High 30,797.16 mn Div Yield (%) 200-Day Low 6.60 -
Last 60 days High Low 112.50 94.90 89.98 30.48 164.99 69.00
94.00 82.20 69.52 23.50 116.00 59.00
2010 Div BR (%) (%) 20 30
20B -
2011 Div BR (%) (%) -
-
Fundamental Highlights As on Dec 31, 2009
Technical Analysis RSI (14-day)
40.72
Total Assets (Rs in mn)
MA (10-day)
2.66
Total Equity (Rs in mn)
MA (100-day)
2.74
Revenue (Rs in mn)
68,664.34 196.91 5,913.32
MA (200-day)
2.90
Interest Expense
1st Support
2.54
Loss after Taxation
5,855.52
2nd Support
2.51
EPS 09 (Rs)
1st Resistance
2.63
Book value / share (Rs)
2nd Resistance
2.69
PE 10 E (x)
Pivot
2.60
PBV (x)
(2,902.91) (3.224) 0.22 11.84
SILK closed down -0.05 at 2.59. Volume was 32 per cent below average and Bollinger Bands were 19 per cent wider than normal. The company's loss after taxation stood at Rs700.335 million which translates into a Loss Per Share of Rs0.32 for the nine months of current calendar year (9MCY10). SILK is currently 10.5 per cent below its 200-day moving average and is displaying a downward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into SILK (mildly bullish). Trend forecasting oscillators are currently bearish on SILK.
Pakistan Reinsurance Co Ltd
Fundamental Highlights As on Dec 31, 2009
Technical Analysis RSI (14-day)
57.14
Total Assets (Rs in mn)
MA (10-day)
18.22
Total Equity (Rs in mn)
6,785.66
MA (100-day)
15.49
Revenue (Rs in mn)
2,170.95
MA (200-day)
17.31
Interest Expense
12,372.62
1st Support
17.80
Profit after Taxation
2nd Support
17.62
EPS 09 (Rs)
1st Resistance
18.23
Book value / share (Rs)
22.62
2nd Resistance
18.48
PE 10 E (x)
46.37
Pivot
18.05
PBV (x)
0.00 269.91 0.90
0.79
PAKRI closed down -0.11 at 17.93. Volume was 76 per cent below average (consolidating) and Bollinger Bands were 69 per cent wider than normal. The company's profit after taxation stood at Rs88.468 million which translates into an Earning Per Share of Rs0.29 for the nine months of current calendar year (9MCY10). PAKRI is currently 3.6 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into PAKRI (mildly bullish). Trend forecasting oscillators are currently bullish on PAKRI.
BOOK CLOSURES Company
From
To
D.M. Textile Mills # Arif Habib Investments # Summit Bank Quice Food Ind. Mubarak Tex Mills # Husein Industries First Cap Mutual Fund # Shaheen Insurance Redeo Textiles # United Distributors # (TFC) Saudi Pak Leasing (FTC) Allied Bank Int Ind (Consolidated) Millat Tractors Ideal Energy # Olympia Spng. Weaving Mills # Shadman Cotton Mills Mehran Sugar Mills Int Industries #
31-Jan 01-Feb 01-Feb 01-Feb 05-Feb 06-Feb 07-Feb 07-Feb 07-Feb 08-Feb 10-Feb 14-Feb 16-Feb 18-Feb 18-Feb 18-Feb 19-Feb 21-Feb -
07-Feb 07-Feb 08-Feb 07-Feb 12-Feb 12-Feb 14-Feb 14-Feb 14-Feb 14-Feb 27-Feb 24-Feb 24-Feb 26-Feb 26-Feb 26-Feb 28-Feb -
D/B/R 20(R) 25 (R) 15 (I) 325 (I) 5 7.5(I) -
Spot AGM/Date 24-Jan -
31-Jan 07-Feb 07-Feb 09-Feb 10-Feb 14-Feb 15-Feb 14-Feb 26-Feb 26-Feb 26-Feb 24-Feb
INDICATIONS # Extraordinary General Meeting
ZERO VOLUME Symbols
Open
High
Low
Close
BIFO DCTL WAZIR AZTM GSPM MUBT REDT PKGI ESBL BFMOD PAKMI FPRM FTSM
36.50 1.49 6.75 2.58 7.25 1.44 0.85 6.00 2.99 3.68 0.56 7.00 5.99
36.00 1.49 6.80 2.58 7.25 1.44 0.85 6.10 2.95 3.70 0.60 7.10 5.99
35.00 1.00 6.75 1.80 6.99 1.40 0.80 6.00 2.95 3.68 0.56 7.00 5.50
35.00 1.00 6.80 1.80 6.99 1.40 0.80 6.10 2.95 3.70 0.60 7.10 5.50
Change -1.50 -0.49 0.05 -0.78 -0.26 -0.04 -0.05 0.10 -0.04 0.02 0.04 0.10 -0.49
Vol 0 0 0 0 0 0 0 0 0 0 0 0 0
7
Monday, January 31, 2011 Ask Gen Insurance
FIXED LINE TELECOMMUNICATION
Atlas Insurance
Performance of SR Fixed Line Telecommunication Index Open 1,152.56 Turnover 10,013,338 P/E (x) 6.12 Paid up Cap(mn)
Company
High Low 1,167.58 1,125.47 Total cos Defaulter cos P/BV (x) ROE (%) 0.79 12.84
PE
Open
High
Low
Close Chg
Pakistan Telecomm Co A 37740 12.79 Telecard 3000 0.64 WorldCall Tele 8606 -
19.49 2.20 2.89
19.70 2.30 2.98
19.11 2.12 2.65
19.19 -0.30 2.15 -0.05 2.72 -0.17
Close 1,131.76 Listed cap 50,077.79 mn Payout (%) 62.56
Volume 4575589 995701 4441145
204
Change % Change -20.80 -1.80 Market cap 200-Day High 78,461.97 mn Div Yield (%) 200-Day Low 10.22 -
Last 60 days High Low
2010 Div BR (%) (%)
20.65 2.67 3.45
17.5 1 -
18.21 2.12 2.40
2011 Div BR (%) (%)
-
-
-
ELECTRICITY
369
Paid up Cap(mn)
Company
Genertech Hub Power Japan Power KESC Kohinoor Energy Kohinoor Power Kot Addu Power Nishat Chunian Power Ltd Nishat Power Ltd S G Power Sitara Energy Ltd Southern Electric Tri-star Power XD
High Low 1,363.83 1,322.63 Total cos Defaulter cos P/BV (x) ROE (%) 1.35 9.35
PE
Open
High
Low
198 11572 7.14 1560 7932 1695 10.50 126 2.80 8803 5.23 3673 3.72 3541 28.73 178 191 3.38 1367 150 -
0.82 38.26 1.71 3.11 19.35 4.45 43.71 16.51 17.68 1.37 18.18 2.17 0.90
0.90 39.60 1.82 3.20 19.60 4.77 44.24 17.30 18.40 1.43 18.32 2.29 1.05
0.75 37.95 1.63 2.70 18.06 3.85 42.77 16.25 17.48 0.45 18.00 2.12 0.75
11.47
10.30
11.19 0.34
19873
12.75
10.00
Sui North Gas Sui South Gas
Close 1,340.52 Listed cap 95,369.29 mn Payout (%) 104.13
5.94
39.00
39.15
36.70
37.38 -1.62
68043
40.00
32.10
-
-
-
-
279
8.30
82.50
81.50
72.85
73.08 -9.42
17586
83.00
52.00
10
10B
-
-
6.48
11.26
11.45
10.30
10.36 -0.90
107553
12.00
9.65
-
-
-
-
1250
-
41.62
42.40
40.00
40.14 -1.48
102719
47.90
39.48
-
-
-
-
400
3.31
EFU General Insurance Habib Insurance IGI Insurance New Jub Insurance Pak Reinsurance
11.00
-
-
718 16.90
94.28
94.49
91.00
91.08 -3.20
16748
99.88
81.10
10
20B
-
-
791 16.03
60.80
61.00
59.00
59.48 -1.32
9607
61.80
53.38
-
-
-
-
3000 45.97
18.35
19.19
17.87
17.93 -0.42
3894650
19.40
14.00
-
-
-
-
8.45
9.95
7.75
8.74 0.29
19210
9.95
5.61
-
-
-
-
2.07
Volume
Last 60 days High Low
35806 4393914 995099 3746710 172888 29762 909848 10111223 12629734 17101 5701 628204 24828
1.18 41.20 2.15 3.55 22.85 5.39 45.85 18.01 18.70 1.70 19.50 2.80 1.75
0.73 33.15 1.50 2.07 17.95 3.85 39.00 13.01 14.14 0.45 17.89 2.09 0.75
Close 1,587.05 Listed cap 12,202.80 mn Payout (%) 66.79
2010 Div BR (%) (%) 50 15 50 20 -
2011 Div BR (%) (%)
7.8R -
-
-
Change % Change -33.16 -2.05 Market cap 200-Day High 33,913.41 mn Div Yield (%) 200-Day Low 6.66 -
PE
Open
High
Low
Close Chg
Volume
Last 60 days High Low
5491 8390
8.25 3.36
28.51 22.53
28.95 23.00
27.55 21.80
27.72 -0.79 22.28 -0.25
284547 1555236
34.75 25.30
25.71 19.95
2010 Div BR (%) (%) 20 15
2011 Div BR (%) (%)
25B
-
-
BANKS Performance of SR Banks Index
Paid up Cap(mn)
Company
PE
Open
Allied Bank Limited 7821 7.02 72.54 Askari Bank 6427 8.79 18.61 Bank Alfalah 13492 15.03 11.74 Bank AL-Habib 7322 8.08 37.96 Bank Of Khyber 5004 5.45 3.96 Bank Of Punjab 5288 9.37 BankIslami Pak 5280 965.00 3.92 Faysal Bank 7309 4.85 15.45 Habib Bank Ltd 10019 7.73 123.80 Habib Metropolitan Bank 8732 8.11 26.95 JS Bank Ltd 8150 2.50 KASB Bank Ltd 9509 2.01 MCB Bank Ltd 7602 10.35 230.32 Meezan Bank 6983 9.80 19.00 Mybank Ltd 5304 3.05 National Bank 13455 6.80 76.84 NIB Bank 40437 2.98 Samba Bank 14335 2.01 Silkbank Ltd 26716 2.64 Soneri Bank 6023 7.40 Stand Chart Bank 38716 12.02 8.22 United Bank Ltd 12242 8.08 69.06
High
High Low Close 1,216.97 1,184.93 1,201.36 Total cos Defaulter cos Listed cap - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.19 13.94 40.49 Low
Close Chg
72.90 71.10 72.26 -0.28 18.80 18.20 18.46 -0.15 11.90 11.49 11.72 -0.02 39.00 37.45 37.50 -0.46 4.13 3.85 4.09 0.13 9.50 8.88 8.95 -0.42 4.20 3.82 3.86 -0.06 15.74 14.80 15.05 -0.40 125.10 122.00 123.82 0.02 27.40 26.50 26.52 -0.43 2.60 2.35 2.37 -0.13 2.17 1.49 1.67 -0.34 235.48 228.25 233.43 3.11 19.40 18.40 18.53 -0.47 3.20 2.81 2.83 -0.22 79.31 76.07 77.86 1.02 3.00 2.75 2.87 -0.11 2.09 1.70 1.76 -0.25 2.72 2.57 2.59 -0.05 7.73 7.02 7.30 -0.10 8.20 7.70 7.81 -0.41 69.74 68.00 68.80 -0.26
Change % Change 1.21 0.10 Market cap 200-Day High 721,746.56 mn Div Yield (%) 200-Day Low 4.73 -
Last 60 days High Low
Volume 975053 3645216 10450943 754674 68010 7966762 286101 633285 1017807 55809 256492 10923681 3755738 135613 179858 11252044 3889713 1089013 4282655 708103 138481 2833290
74.00 19.25 11.97 39.49 4.70 10.59 4.50 17.10 128.97 29.28 3.00 2.80 250.48 20.30 3.40 80.61 3.35 2.17 3.05 8.48 9.04 70.65
54.96 14.96 9.11 31.50 3.16 8.34 3.00 14.01 100.50 19.70 2.35 1.49 199.00 14.50 1.90 63.53 2.59 1.51 2.50 7.00 6.33 55.25
2010 Div BR (%) (%)
-
-
NON LIFE INSURANCE
Paid up Cap(mn)
Company Adamjee Insurance
High Low 823.75 799.25 Total cos Defaulter cos P/BV (x) ROE (%) 0.69 5.20
13.90
13.40
13.89 0.47
7871
15.50
-
UPTO 5000 VOLUME Symbols FANM AKDCL SIBL BGL GAMON CWSM GSPM GATM EMCO ICL MOON BCL SANSM LPGL KOHS ISTM SARD ESBL PMRS FRSM BWCL BRR FECM DINT SKRS GRAYS TRPOL ULEVER ELSM HUSS DMTX ICCT KOHTM BTL HINO LIBM BATA COLG HMIM ALICO BAPL ADOS DFSM SKFL SFWF PPP FNEL BUXL IDYM DYNO SSIC SANE THAS RUPL FZTM MSOT NESTLE MQTM SCLL SHJS SING ARUJ FCONM THCCL GAEL AATM MLCFPS PAKD PNGRS NOPK RICL PGCL SIEM MIRKS KSTM DIIL CLOV FTSM BILF ACCM DATM GOEM HAJT KHTC SUTM FIBLM SIGL NAGC AZTM FNBM DADX GATI RMPL NPSM SNAI ISIL CPAL BWHL LAKST UVIC FPRM ILTM PECO AASM OTSU ARPAK BIFO AABS WAZIR UPFL SALT TICL LMSM LEUL GRYL GLPL MUBT MFFL TOWL FASM ZAHT TSMF NMBL SHCI SURC SSML DWTM PSEL TATM AHTM FZCM GUTM MUCL PHDL
-
250
PICIC Ins Ltd
350
-
9.60
9.71
8.25
8.99 -0.61
28245
10.75
2.61
-
-
-
Premier Insurance
303
6.21
11.80
12.44
10.51
11.49 -0.31
12559
12.93
9.00
-
-
-
-
Shaheen Insurance
200
-
12.04
12.64
11.10
11.10 -0.94
6324
14.53
11.10
-
-
-
25R
United Insurance XB
400
2.46
6.76
7.80
6.70
7.50 0.74
13166
7.80
5.00
-
-
-
-
Open 839.42 Turnover 285,784 P/E (x) 5.69
-
Paid up Cap(mn)
Close 803.40 Listed cap 11,111.34 mn Payout (%) 79.54
Change % Change -10.35 -1.27 Market cap 200-Day High 49,126.54 mn Div Yield (%) 200-Day Low 5.99 -
PE
Open
High
Low
Close Chg
Volume
Last 60 days High Low
1237 27.54
93.48
95.85
92.11
95.02 1.54
4446325
96.35
66.50
2010 Div BR (%) (%) 10
2011 Div BR (%) (%)
-
-
-
High Low 849.55 803.43 Total cos Defaulter cos P/BV (x) ROE (%) 3.19 3.85
Close 816.00 Listed cap 2,290.72 mn Payout (%) 355.53
Change % Change -23.43 -2.79 Market cap 200-Day High 9,569.39 mn Div Yield (%) 200-Day Low 4.29 -
PE
Open
High
Low
Close Chg
Volume
Last 60 days High Low
EFU Life Assurance
850 38.66
70.12
71.39
67.50
68.05 -2.07
125288
86.95
62.75
-
-
-
-
New Jub Life Insurance
627 30.20
45.80
46.50
43.25
45.00 -0.80
158577
49.31
40.00
-
-
-
-
Company
2010 Div BR (%) (%)
2011 Div BR (%) (%)
FINANCIAL SERVICES Performance of SR Financial Services Index Open 429.59 Turnover 19,820,942 P/E (x) 11.82 Company
Paid up Cap(mn)
AMZ Ventures Arif Habib Limited Dawood Cap Mangt. XB Dawood Equities IGI Investment Bank Invest and Fin Sec Invest Bank Ist Cap Securities Ist Dawood Bank Jah Siddiq Co JOV and CO JS Global Cap JS Investment Orix Leasing Pervez Ahmed Sec Saudi Pak Leasing Trust Brokerage Trust Inv Bank
High Low 441.59 410.60 Total cos Defaulter cos P/BV (x) ROE (%) 0.28 0.91
PE
Open
High
Low
225 1.68 450 13.28 150 1.34 250 2121 17.19 600 733.00 2849 3166 626 0.59 7633 508 500 7.16 1000 28.17 821 4.60 775 452 100 586 2.53
0.65 26.66 1.57 2.02 2.37 7.95 0.63 3.30 1.78 12.22 3.95 28.73 7.06 6.54 2.03 0.73 2.39 2.00
0.85 26.90 1.94 2.20 2.75 8.98 0.82 3.57 1.79 12.59 4.09 29.48 7.33 6.55 2.17 0.95 4.00 2.00
0.50 25.70 1.30 1.51 2.32 7.33 0.53 3.15 1.61 11.61 3.79 26.55 6.71 6.01 1.87 0.41 1.60 1.62
Close Chg 0.74 26.03 1.50 1.90 2.75 7.33 0.68 3.25 1.65 11.73 3.82 26.63 6.76 6.26 1.91 0.50 3.50 1.62
0.09 -0.63 -0.07 -0.12 0.38 -0.62 0.05 -0.05 -0.13 -0.49 -0.13 -2.10 -0.30 -0.28 -0.12 -0.23 1.11 -0.38
Close 415.21 Listed cap 30,336.44 mn Payout (%) 99.56
Volume 1090430 168228 14006 12384 38797 17919 39148 278744 87931 16261597 295298 16004 318942 19152 504872 36734 36915 20055
Change % Change -14.38 -3.35 Market cap 200-Day High 19,173.35 mn Div Yield (%) 200-Day Low 3.27 -
Last 60 days High Low
2010 Div BR (%) (%)
0.95 28.00 2.14 2.75 3.90 8.98 1.09 4.20 2.14 14.05 5.38 32.37 7.59 7.29 2.70 0.97 4.00 2.98
11.5 10 -
0.33 24.40 1.15 1.28 2.01 6.16 0.50 2.95 1.05 9.54 3.10 25.75 5.80 5.25 1.84 0.41 1.42 1.48
20B 10B -
2011 Div BR (%) (%) -
-
EQUITY INVESTMENT INSTRUMENTS
2011 Div BR (%) (%)
20 - 20B - 66R 55 -63.46R 10 -
Performance of SR Non Life Insurance Index Open 813.75 Turnover 8,772,733 P/E (x) 13.29
13.42
Pak Gen Insurance
Change % Change 3.15 0.24 Market cap 200-Day High 109,709.94 mn Div Yield (%) 200-Day Low 7.22 -
Paid up Cap(mn)
Open 1,200.15 Turnover 65,298,368 P/E (x) 8.56
-
457
GAS WATER AND MULTIUTILITIES
Company
-
LIFE INSURANCE
0.85 39.00 1.70 2.73 18.90 4.59 43.02 16.97 17.81 0.56 18.10 2.24 0.86
High Low 1,649.05 1,566.55 Total cos Defaulter cos P/BV (x) ROE (%) 1.14 11.41
25R
Central Insurance XB
Performance of SR Gas Water and Multiutilities Index Open 1,620.21 Turnover 1,839,783 P/E (x) 10.02
-
Performance of SR Life Insurance Index
Close Chg 0.03 0.74 -0.01 -0.38 -0.45 0.14 -0.69 0.46 0.13 -0.81 -0.08 0.07 -0.04
10.85
Century Insurance
Performance of SR Electricity Index Open 1,337.37 Turnover 33,700,819 P/E (x) 14.42
6.78
Performance of SR Equity Investment Instruments Index Open 1,408.18 Turnover 9,242,382 P/E (x) 18.75 Company
Paid up Cap(mn)
1st Fid Leasing AL-Meezan Mutual F. Atlas Fund of Funds Crescent St Modaraba Equity Modaraba First Capital Mutual F. First Dawood Mutual F. Golden Arrow H B L Modaraba Habib Modaraba JS Growth Fund JS Value Fund KASB Modaraba Meezan Balanced Fund Mod Al-Mali Pak Modaraba PICIC Energy Fund PICIC Growth Fund PICIC Inv Fund Prud Modaraba 1st Punjab Modaraba Stand Chart Modaraba Trust Modaraba U D L Modaraba
264 1375 525 200 524 300 581 760 397 1008 3180 1186 283 1200 184 125 1000 2835 2841 872 340 454 298 264
High Low 1,425.92 1,362.23 Total cos Defaulter cos P/BV (x) ROE (%) 0.41 2.21
PE
Open
High
Low
9.38 7.39 1.81 1.78 11.75 8.75 0.71 2.39 2.63 6.03 72.25 21.21 2.09 2.22 15.00 6.40 2.07 9.29 7.39 2.27 4.67 3.56 1.73
1.75 8.68 5.00 0.66 2.04 4.44 2.17 3.42 8.34 7.10 5.80 5.50 1.82 8.00 1.81 1.10 7.16 14.22 6.55 1.01 1.41 9.60 1.99 6.16
1.80 9.00 5.47 0.75 2.35 4.44 2.35 3.49 8.30 7.30 5.90 5.98 3.50 8.00 2.04 1.28 7.22 15.06 6.64 1.10 1.90 9.91 1.85 6.55
1.20 8.51 4.50 0.51 1.87 3.44 1.99 3.13 7.30 7.00 5.45 5.40 1.81 7.31 1.49 0.95 7.00 13.60 6.11 1.00 0.85 9.51 1.16 6.05
Close 1,400.58 Listed cap 29,771.58 mn Payout (%) 104.74
Change % Change -7.61 -0.54 Market cap 200-Day High 18,938.01 mn Div Yield (%) 200-Day Low 8.68 -
Close Chg
Volume
Last 60 days High Low
2010 Div BR (%) (%)
1.50 8.87 4.50 0.71 1.88 3.50 2.24 3.34 7.88 7.00 5.78 5.94 2.84 7.74 1.50 1.28 7.12 14.50 6.50 1.00 1.88 9.52 1.85 6.10
264923 696577 71420 81507 58857 17204 5013 427574 91496 228968 464611 309329 70572 295351 15156 6202 61431 3164071 2740946 92427 10822 11049 10330 32152
2.00 9.15 5.47 0.87 2.98 5.50 2.39 3.60 9.00 7.30 6.10 5.98 3.50 8.25 2.50 2.00 7.80 15.06 7.14 1.20 2.54 10.29 2.30 6.55
18.5 2.2 1.2 17 11 21 5 10 2.8 15.5 3 10 20 10 3 1 17 5 12.5
-0.25 0.19 -0.50 0.05 -0.16 -0.94 0.07 -0.08 -0.46 -0.10 -0.02 0.44 1.02 -0.26 -0.31 0.18 -0.04 0.28 -0.05 -0.01 0.47 -0.08 -0.14 -0.06
1.18 6.05 3.11 0.16 1.06 2.55 1.61 2.56 5.75 6.00 2.70 2.70 1.26 5.15 0.90 0.46 5.31 8.00 3.67 0.81 0.50 8.51 1.15 5.21
-
2011 Div BR (%) (%) -
-
Open 3.39 45.21 2.99 2.71 2.25 1.46 7.35 27.75 2.71 25.26 13.20 45.00 12.20 14.48 3.51 7.25 1.10 2.04 43.40 17.40 15.00 1.73 2.90 25.40 2.74 47.01 0.54 4602.62 20.02 10.89 2.88 1.25 1.49 57.00 130.59 69.00 640.00 992.70 0.94 18.00 8.60 16.25 3.50 1.12 8.00 44.36 7.68 12.95 208.90 11.00 7.20 6.00 3.02 37.75 407.00 18.50 2859.72 9.35 2.69 70.96 18.49 5.45 1.50 17.94 0.70 1.06 5.00 79.00 4.62 23.79 6.65 26.65 1225.60 51.40 0.90 11.12 67.57 1.40 1.60 0.70 0.39 13.75 0.50 36.00 35.50 2.00 9.95 15.00 1.50 6.50 22.00 48.01 2262.71 22.50 47.30 79.37 1.49 32.68 289.90 3.60 9.15 131.00 152.00 29.52 33.48 10.15 46.25 97.99 7.50 1115.00 62.00 48.22 2.25 2.54 2.50 60.00 1.00 82.79 3.52 36.00 3.50 1.25 1.98 2.40 40.00 1.91 0.00 181.99 35.81 15.52 72.00 19.31 15.00 37.79
High 3.18 47.19 3.98 2.88 2.98 1.75 7.44 30.40 3.00 26.58 14.20 45.00 12.99 13.48 4.48 8.24 1.10 2.99 43.44 17.90 15.00 1.80 3.00 27.45 2.31 51.34 0.80 4750.00 21.39 10.40 2.90 1.25 1.70 62.00 137.11 71.00 665.00 1014.49 0.96 18.00 8.48 17.70 4.39 1.20 8.50 44.99 7.89 13.85 234.95 11.98 7.64 5.50 3.90 37.99 425.00 19.70 3307.00 9.89 2.69 75.39 20.40 5.40 1.98 17.85 1.00 1.30 5.00 79.90 5.49 25.00 6.65 27.00 1250.00 53.47 0.95 11.70 70.00 1.45 1.70 0.99 0.40 13.75 0.50 35.00 33.80 2.84 9.95 16.35 0.55 6.50 22.00 51.40 2390.00 24.00 49.66 80.00 2.30 35.80 296.99 3.85 9.15 131.00 155.95 30.99 35.50 12.15 46.25 102.25 7.50 1220.95 64.88 51.39 1.50 2.50 2.60 60.00 1.00 84.90 7.51 36.00 4.00 1.52 2.65 2.40 41.94 2.50 10.50 180.00 39.00 16.52 71.00 19.01 15.00 35.93
Low
Close
3.05 43.20 2.32 2.30 2.25 0.81 6.56 26.37 2.21 23.50 10.21 43.75 11.35 9.99 3.81 7.25 1.10 1.90 41.01 17.25 13.32 1.47 2.74 26.08 2.31 47.20 0.53 4500.00 20.00 9.89 2.51 0.92 0.85 55.50 123.23 67.00 615.00 957.15 0.80 17.00 7.26 15.80 3.34 1.12 8.10 43.00 6.01 11.02 200.00 10.52 6.85 4.50 2.02 36.55 384.75 18.00 2800.00 9.00 2.35 68.05 18.49 4.50 1.10 17.00 0.70 1.10 4.05 78.30 4.26 24.00 6.55 25.50 1100.00 48.80 0.52 9.64 64.00 0.90 1.10 0.70 0.40 12.50 0.50 35.00 33.73 2.00 9.95 15.40 0.55 6.21 21.25 46.04 2167.00 22.50 42.00 68.76 1.40 32.40 275.35 2.75 8.50 115.00 143.00 28.32 34.49 9.15 43.94 97.40 7.30 1100.00 61.28 44.40 1.50 1.67 1.46 58.00 1.00 79.33 4.52 34.50 3.50 1.28 1.37 2.39 38.26 2.39 9.50 170.57 34.02 16.52 66.50 18.33 14.50 31.91
3.05 45.38 3.35 2.70 2.25 1.25 6.72 30.00 2.98 25.52 11.33 43.75 12.40 11.99 3.90 8.24 1.10 2.29 42.99 17.90 14.00 1.56 2.75 26.08 2.31 47.61 0.53 4546.28 21.00 10.40 2.90 1.23 0.85 57.25 131.00 69.50 630.82 977.47 0.92 17.00 8.48 17.69 4.39 1.20 8.37 43.01 6.01 12.00 234.95 10.99 7.20 4.90 3.90 37.99 421.08 18.58 3293.75 9.01 2.68 68.05 19.35 5.00 1.98 17.75 0.75 1.10 4.33 79.90 5.00 25.00 6.60 25.95 1135.00 48.87 0.56 11.00 64.02 1.45 1.63 0.99 0.40 12.50 0.50 35.00 33.80 2.01 9.95 16.34 0.55 6.21 21.34 49.00 2320.00 24.00 42.00 73.98 2.30 35.80 277.01 2.75 8.50 115.00 155.41 28.32 35.50 11.97 44.01 102.25 7.30 1216.99 64.28 51.39 1.50 1.70 1.46 58.50 1.00 83.00 7.50 34.67 4.00 1.41 1.64 2.39 38.26 2.50 0.00 180.00 36.25 16.52 66.50 18.56 14.50 33.56
Change
Vol
-0.34 0.17 0.36 -0.01 0.00 -0.21 -0.63 2.25 0.27 0.26 -1.87 -1.25 0.20 -2.49 0.39 0.99 0.00 0.25 -0.41 0.50 -1.00 -0.17 -0.15 0.68 -0.43 0.60 -0.01 -56.34 0.98 -0.49 0.02 -0.02 -0.64 0.25 0.41 0.50 -9.18 -15.23 -0.02 -1.00 -0.12 1.44 0.89 0.08 0.37 -1.35 -1.67 -0.95 26.05 -0.01 0.00 -1.10 0.88 0.24 14.08 0.08 434.03 -0.34 -0.01 -2.91 0.86 -0.45 0.48 -0.19 0.05 0.04 -0.67 0.90 0.38 1.21 -0.05 -0.70 -90.60 -2.53 -0.34 -0.12 -3.55 0.05 0.03 0.29 0.01 -1.25 0.00 -1.00 -1.70 0.01 0.00 1.34 -0.95 -0.29 -0.66 0.99 57.29 1.50 -5.30 -5.39 0.81 3.12 -12.89 -0.85 -0.65 -16.00 3.41 -1.20 2.02 1.82 -2.24 4.26 -0.20 101.99 2.28 3.17 -0.75 -0.84 -1.04 -1.50 0.00 0.21 3.98 -1.33 0.50 0.16 -0.34 -0.01 -1.74 0.59 0.00 -1.99 0.44 1.00 -5.50 -0.75 -0.50 -4.23
4900 4703 4560 4515 4501 4473 4359 4295 4256 4122 3963 3519 3466 3297 3288 3057 3000 2955 2756 2724 2700 2693 2637 2633 2500 2380 2353 2351 2331 2270 2111 2050 1997 1978 1917 1850 1807 1803 1802 1611 1541 1520 1502 1500 1500 1491 1466 1431 1402 1351 1311 1301 1300 1292 1222 1200 1182 1101 1075 1038 1010 1002 1002 1001 1000 1000 993 903 838 742 733 706 698 682 664 657 557 535 511 500 500 500 500 500 499 495 490 424 400 400 384 353 300 300 290 275 262 249 211 205 200 186 149 145 131 125 100 100 100 95 95 94 88 76 61 51 50 40 30 30 30 28 27 25 24 20 13 12 11 10 10 6 5 5
BOARD MEETINGS
Fauji Fertiliser Bin Qasim Ltd
KSE 100 INDEX
National Bank of Pakistan
Fauji Fertiliser Co
Company
Date
Time
Clariant Pakistan Limited Al-Abbas Sugar Mills Ltd Merit Packaging Limited Haseeb Waqas Mills Ltd Abdullah Shah Ghazi Sugar Mills Ltd Dewan Sugar Mills Ltd First Habib Modaraba JDW Sugar Mills Ltd Frontier Ceramics Ltd Lucky Cement Limited Adil Textile Mills Limited
31-Jan 31-Jan 31-Jan 31-Jan 31-Jan 31-Jan 31-Jan 31-Jan 31-Jan 31-Jan 01-Feb
11:00 5:00 3:30 9:00 4:00 5:00 11:30 1:00 9:30 12:00 10:30
TECHNICAL LEVELS Company
Technical Outlook Technical Analysis RSI (14-day)
Brokerage House
Leverage Position
Fair Value
Hold
*Invest Cap
*Arif Habib Ltd
37
Sell
*Arif Habib Ltd
62.59
Support 1
12,431.20
12,449.88
Support 2
12,399.70
MA (10-day)
12,501.09
Resistance 1
12,513.55
MA (100-day)
11,072.70
Resistance 2
12,564.45
Technical Analysis
MA (200-day)
10,533.42
Pivot
12,482.05
RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Mean Median
TFD Research
44.25
Fair Value
Neutral
Free Float Shares (mn) 326.94 Free Float Rs (mn) 13,466.60 CFS Shares (mn) N/A CFS Rs (mn) N/A CFS Rate N/A ** NOI Rs (mn) 114.32
RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Mean Median
Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)
Buy
61.96
TFD Research
Neutral
Rs Recommendations
Neutral
92.3
Positive
Technical Outlook 373.19 57,012.22 N/A N/A N/A 105.27
Technical Analysis RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Mean Median
Leverage Position
60.05 77.58 68.79 68.34 77.53 77.69
Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)
318.44 24,794.07 N/A N/A N/A 137.61
* Target price for Jun-11 & **Net Open Interest in future market NBP closed up 1.02 at 77.86. Volume was 72 per cent below average (consolidating) and Bollinger Bands were 34 per cent narrower than normal. NBP is currently 13.9 per cent above its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of NBP at a relatively equal pace. Trend forecasting oscillators are currently bullish on NBP.
Brokerage House
Fair Value
Rs Recommendations
Brokerage House
*Invest Cap
245
Buy
*Invest Cap
AKD Securities Ltd
238.8
Buy
TFD Research
TFD Research
14.01
Positive
TFD Research
245.4
Positive
Technical Outlook
Technical Outlook
Technical Analysis RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Mean Median
59.87 212.87 186.13 186.15 212.18 212.69
Pakistan Oilfields Ltd
Nishat Mills Ltd
Hold
674.58 7,906.06 N/A N/A N/A N/A
AKD Securities Ltd
Leverage Position
72.59 151.91 116.75 112.70 153.86 154.35
88
* Target price for Jun-11 & **Net Open Interest in future market
Hold
Leverage Position
Buy
Fair Value
FFC closed up 0.14 at 152.77. Volume was 66 per cent above average and Bollinger Bands were 251 per cent wider than normal. FFC is currently 35.5 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 FFC (mildly bullish). Trend forecasting oscillators are currently bullish on FFC. Momentum oscillator is currently indicating that FFC is currently in an overbought condition.
11.55
Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)
*Invest Cap
* Target price for Jun-11 & **Net Open Interest in future market
11.80
62.34 11.53 9.73 9.71 11.61 11.70
Brokerage House
Hold
FFBL closed down -1.08 at 41.19. Volume was 49 per cent above average and Bollinger Bands were 100 per cent wider than normal. FFBL is currently 33.6 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into FFBL (mildly bullish). Trend forecasting oscillators are currently bullish on FFBL.
*Invest Cap
Technical Analysis
139.5
Technical Analysis
*Arif Habib Ltd
RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Mean Median
164.1
Engro Corporation
Rs Recommendations
Rs Recommendations
Technical Outlook
Leverage Position
62.16 41.72 33.20 30.85 41.33 41.67
Fair Value 149
TFD Research
Technical Outlook
Bank Al-Falah Ltd
Brokerage House
Brokerage House
39
MA (5-day)
KSE 100 INDEX closed up 30.79 points at 12,462.70. Volume was 32 per cent below average and Bollinger Bands were 3 per cent narrower than normal. As far as resistance level is concern, the market will see major 1st resistance level at 12,513.55 and 2nd resistance level at 12,564.45, while Index will continue to find its 1st support level at 12,431.20 and 2nd support level at 12,399.70. KSE 100 INDEX is currently 18.4 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 INDEX (mildly bullish). Trend forecasting oscillators are currently bullish on INDEX.
Rs Recommendations
*Invest Cap
77 78.6
Rs Recommendations
Brokerage House
147.48 31,276.42 N/A N/A N/A 259.94
Technical Analysis RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Mean Median
54.13 67.70 56.16 52.42 66.33 66.64
Fair Value
Buy
*Invest Cap
Positive
*Arif Habib Ltd
336.1
TFD Research
281.35
Leverage Position Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)
360
Rs Recommendations Hold Hold Negative
Technical Outlook
Technical Outlook
Leverage Position Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)
Fair Value
175.80 11,787.38 N/A N/A N/A 87.40
Technical Analysis RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Mean Median
64.94 330.96 268.47 247.79 327.84 329.86
Leverage Position Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)
107.94 35,503.24 N/A N/A N/A 346.79
* Target price for Jun-11 & **Net Open Interest in future market
* Target price for Jun-11 & **Net Open Interest in future market
* Target price for Jun-11 & **Net Open Interest in future market
* Target price for Jun-11 & **Net Open Interest in future market
BAFL closed down -0.02 at 11.72. Volume was 30 per cent below average and Bollinger Bands were 8 per cent narrower than normal. BAFL is currently 20.7 per cent above its 200-day moving average and is displaying an upward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into BAFL (bullish). Trend forecasting oscillators are currently bullish on BAFL.
ENGRO closed up 0.60 at 212.07. Volume was 41 per cent below average and Bollinger Bands were 105 per cent wider than normal. ENGRO is currently 14.0 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 ENGRO (mildly bullish). Trend forecasting oscillators are currently bullish on ENGRO.
NML closed down -0.01 at 67.05. Volume was 62 per cent below average (consolidating) and Bollinger Bands were 4 per cent narrower than normal. NML is currently 27.9 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into NML (mildly bullish). Trend forecasting oscillators are currently bullish on NML.
POL closed up 1.35 at 328.91. Volume was 14 per cent below average and Bollinger Bands were 23 per cent wider than normal. POL is currently 32.7 per cent above its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into POL (mildly bullish). Trend forecasting oscillators are currently bullish on POL.
Al-Abbas Cement Allied Bank Limited Attock Cement Arif Habib Corp Arif Habib Limited Adamjee Insurance Askari Bank Azgard Nine Attock Petroleum Attock Refinery Bank Al-Falah BankIslami Pak Bank.Of.Punjab Dewan Cement D.G.K.Cement Dewan Salman Dost Steels Ltd EFU General Insurance EFU Life Assurance Engro Chemical Faysal Bank Fauji Cement Fauji Fert Bin Fauji Fertilizer Habib Bank Ltd Hub Power ICI Pakistan Indus Motors J.O.V.and CO Japan Power JS Bank Ltd Jah Siddiq Co Kot Addu Power K.E.S.C Lotte Pakistan Lucky Cement MCB Bank Ltd Maple Leaf Cement National Bank Nishat (Chunian) Netsol Technologies NIB Bank Nimir Ind.Chemical Nishat Mills Oil & Gas Dev. XD PACE (Pakistan) Ltd. Pervez Ahmed Sec P.I.A.C.(A) Pioneer Cement Pak Oilfields Pak Petroleum Pak Suzuki P.S.O. XD P.T.C.L.A Shell Pakistan Sui North Gas Sitara Peroxide Sui South Gas Telecard TRG Pakistan United Bank Ltd WorldCall Tele
RSI 1st 2nd (14-day) Support 45.39 3.00 2.90 60.46 71.60 70.95 16.64 53.95 52.80 52.20 26.45 26.15 46.01 25.60 25.20 65.82 94.65 94.25 61.39 18.25 18.00 60.08 11.45 11.25 76.45 386.40 381.75 58.61 135.45 131.55 62.34 11.55 11.35 51.78 3.75 3.60 35.28 8.90 8.80 50.97 2.05 1.90 47.11 29.60 29.45 45.82 2.80 2.65 43.82 2.50 2.40 34.13 39.70 39.25 33.66 66.55 65.10 59.87 210.80 209.55 47.15 14.70 14.30 43.55 4.85 4.75 62.16 40.90 40.60 72.59 151.40 150.00 55.71 122.90 121.95 55.77 38.75 38.45 52.77 149.05 148.35 69.53 292.65 291.85 42.27 3.75 3.65 48.47 1.65 1.60 38.90 2.30 2.25 44.21 11.60 11.50 50.62 42.60 42.25 40.83 2.65 2.55 60.08 15.30 15.10 46.62 73.30 72.80 54.57 231.40 229.40 42.43 2.65 2.60 60.05 77.45 77.00 53.91 23.05 22.55 70.74 25.20 24.65 44.46 2.80 2.75 40.55 1.70 1.65 54.13 66.40 65.75 52.66 172.10 171.10 59.00 3.20 3.10 38.52 1.90 1.85 44.31 2.25 2.15 39.02 6.65 6.60 64.94 326.45 323.95 40.48 209.20 207.60 35.90 65.65 64.50 57.96 301.40 298.35 44.72 19.05 18.90 51.42 209.05 207.95 48.71 27.50 27.30 45.92 13.20 13.10 52.01 21.85 21.45 42.43 2.10 2.05 37.58 3.15 3.05 59.60 68.30 67.85 45.95 2.70 2.65
1st
2nd
Resistance 3.20 3.30 72.85 73.40 57.30 59.50 27.05 27.35 26.55 27.10 95.55 96.10 18.70 19.00 12.00 12.30 398.40 405.70 141.85 144.30 11.90 12.05 4.10 4.30 9.05 9.10 2.25 2.35 29.90 30.05 3.05 3.20 2.75 2.85 40.90 41.60 70.45 72.85 214.15 216.25 15.55 16.05 5.00 5.05 41.45 41.75 154.30 155.80 124.85 125.90 39.40 39.75 150.65 151.65 294.15 294.85 3.95 4.05 1.75 1.80 2.45 2.55 11.85 12.00 43.55 44.10 2.90 3.00 15.75 15.95 74.35 74.95 235.40 237.40 2.75 2.80 78.45 79.00 24.10 24.65 26.15 26.55 2.90 2.95 1.80 1.85 67.55 68.00 174.50 175.90 3.35 3.45 2.00 2.05 2.45 2.55 6.80 6.90 332.20 335.45 213.20 215.60 67.80 68.80 306.55 308.70 19.40 19.65 211.40 212.60 27.95 28.20 13.40 13.50 22.65 23.05 2.20 2.30 3.35 3.45 69.25 69.70 2.80 2.85
Pivot 3.10 72.15 56.15 26.75 26.15 95.15 18.50 11.80 393.70 137.90 11.70 3.95 8.95 2.15 29.75 2.95 2.65 40.45 69.00 212.90 15.20 4.90 41.15 152.90 123.95 39.10 150.00 293.35 3.85 1.70 2.40 11.75 43.15 2.80 15.55 73.90 233.40 2.70 78.00 23.60 25.60 2.85 1.75 66.90 173.50 3.30 1.95 2.35 6.75 329.70 211.60 66.65 303.55 19.25 210.25 27.75 13.30 22.25 2.15 3.25 68.80 2.75
Swiss Re planning new Successor X cat bond: S&P 8
Monday, January 31, 2011
State Bank of Pakistan Report
Insurance assets in GDP lie very low KARACHI: Tahir Ahmed MD & Chief Executive NJI & Tawfiq Husain, President & Chief Executive Samba Bank signing Bancussurance Distribution Agreement.-Staff Photo
BankUnited rises as investors bet on growth NEW YORK: BankUnited Inc shares rose as much as 9.3 per cent in their debut on Friday, on speculation that the cleaned-up Florida lender will be one of the winners in the aftermath of the US financial crisis. BankUnited's IPO is the first for a major failed institution taken over by private investors during the financial crisis. With its losses from crisis-era assets protected by the Federal Deposit Insurance Corp and new management at the helm, investors see the lender as a way to bet on the industry's recovery. The IPO's success could bode well for the owners of other banks such as IndyMac -- now known as OneWest Bank -- that were bought by private investors during the crisis. BankUnited's private equity backers, which include Wilbur Ross's WL Ross & Co, Blackstone Group LP and Carlyle Group, have seen their initial investment of $900 million nearly triple at the IPO price. "While it was very nice and we are very happy to have the kind of results we got, I think the real exciting
part of this story and the bigger returns are ahead of us," Chief Executive Officer John Kanassaid in a phone interview. Kanas, a veteran banker, will control a stake worth more than six times his initial investment of $23.5 million, which he has recouped in the IPO. The investors' returns are in stark contrast to the FDIC's estimated $5.7 billion losses on the sale of the assets of the failed Floridalender to the Kanasled group. The regulator, however, saved about $1.5 billion on BankUnited by not having to liquidate the failed bank. It is expected to get about $25 million from the IPO. Kanas, 64, said it was "infuriating" to see the FDIC criticized for the deal, pointing out that the agency invited more than 60 parties to the auction in 2009 and attracted only three bidders. "While it is clear that we had a very good contract with the FDIC, no one was bidding on banks in those days," Kanas said. "To attract a billion dollars in new capital to the industry at that time was quite a feat. The FDIC did a
masterful job in managing the whole meltdown." BankUnited raised $783 million from the IPO. It sold 29 million shares at $27 each, up from an earlier plan to sell 26.25 million shares at $23 to $25 each. "Investors are anxious for a positive bank story and one where they don't have to worry about asset quality, which is certainly the case at BankUnited," said Kanas, who was at the New York Stock Exchangeto ring the opening bell. BankUnited sold 4 million shares in its IPO, while existing stockholders sold 25 million. The underwriters have a 30-day option to purchase an additional 4.35 million shares from the original investors, who will still own the majority stake. BankUnited shares closed up 5.2 per cent at $28.40 after rising as high as $29.50. The stock is trading at more than two times tangible book value, more expensive than its peers that trade around 1.8 times tangible book value, said Nick Einhorn, a research analyst at IPO research and investment firm Renaissance Capital. -Reuters
Insurers want off regulators' big players risk list at Davos DAVOS: Large insurers are resisting attempts to be included in a shortlist by regulators for big players in need of more safeguards to avoid posing a threat to the whole financial system. While much work has been done to draft better capital and solvency buffers, global regulators are still discussing what sort of measures they should introduce to prevent any future failure of a major financial player destabilising the whole system. At the centre of the discussion, now being carried out by global regulators and a topic at the annual World Economic Forum, are so-called Systemically Important Financial Institutions, or SIFIs and how they should be defined.
Global supervisors are currently hammering out measures for banks, but have said they could at some point also include insurance companies and other non-bank financial institutions. "I don't see any reason to elevate the status of insurers in a way that they are systemic," said Dieter Wemmer, Chief Financial Officer at Swiss insurer Zurich Financial Services. "Some times the word systemic is being used very loosely and we should understand what it means." While much of the credit crisis that triggered financial turmoil in 2007-08 was a result of aggressive risk-taking by banks, US insurer AIG , then the world's biggest player, was also among those
needing a state bailout. But it was the financial services arm of AIG, not the insurance entity, that caused the problem, Paul Achleitner, management board member atGermany' Allianz said while in Davos. "I do not think it's a question of a whole industry to be qualified, it's a question of what individual businesses and business lines you are engaged in," he added. Industry players are also resisting the notion that size should be the main driver in determining whether a financial institution is systemically relevantto curtailments of natural gas supply from Argentina, reported a 4 per cent fall in production to 913,000 tons. -Reuters
AIG, Ally offerings may crowd out others LONDON: Banks aiming to pay back bailout money to the United States could look to raise capital soon as the government itself plans to sell billions of dollars worth of shares in financial companies. The Treasury Department is planning massive share offerings to sell down its stakes in two large wards of the state: American International Group and Ally Financial. Both those offerings could come in the first half of this year and could top $20 billion total, according to sources familiar with the situation. AIG and the Treasury plan to sell $15 billion or more of the insurer's shares in a secondary offering after May 15. Ally is eyeing a share sale of more than $5 billion and could take its initial public offering to the market around the same time, according to sources. Investors often have a defined amount of money they are willing to allocate to financial stocks, and after a few big deals, their capacity to buy more bank shares could be limited. That factor hurt Citigroup in December 2009, when it sold shares after Bank of America Corp and Wells Fargo & Co had already raised more than $30 billion. Officials at the bank said those sales forced Citi to sell shares at a lower price. "If they make it attractive in order to get that volume I think it will have a crowding out effect for a period of time," said Marshall Sonenshine, chairman of boutique investment bank Sonenshine Partners. "I don't think that means everything else just shuts off. It just means some things get delayed." There are at least three large banks that have yet to repay TARP -- SunTrust Banks, Regions Financial Corp and KeyCorp. If banks can't sell shares soon, the government could be in the unfortunate position of delaying its collecting TARP funds from banks by selling so many Ally and AIG shares. Global markets have shown a remarkable appetite for financial services stocks in the last two years, with FIG offerings accounting for 30 per cent to 40 per cent of all IPO and secondary issuance, according to Thomson Reuters data. -Reuters
KARACHI: Despite strong growth in asset base of 13.3 per cent, the share of insurance sector assets in the GDP declined marginally to 2.8 per cent in calendar year, 2009 as against 2.9 per cent in the previous year. A State Bank of Pakistan (SBP report issued recently revealed it. The report highlighted weaknesses and advantages of the insurance sector and said insurance penetration in Pakistan is one of the lowest in the region. “The lethargic pace of implementation of insurance sector reforms is another factor resulting in one of the lowest insurance penetration level in the region,” said the report. It said that the insurance of government assets not only results in additional cost, but it also indicates monopolistic inefficiencies given that all public sector organisations can only avail insurance coverage from the state-owned companies. The SBP report said the contribution of life insurance sector assets towards total industry assets has witnessed a gradual increase in calendar year, 2009 on account of increased insurance business in terms of rising gross premiums that eventually led to a significant increase in investments. Moreover, the performance of the life insurance sector that witnessed a net loss in CY08 on account of sluggish capital market performance, registered a significant recovery by posting a profit of Rs1 billion in CY09, said the report. Much of the recovery in profits
emanates from the increase in investment income which also helped contain incidence of rising claims. The report said besides an increase in the asset base and recovery in profitability, another important development pertains to rising share of private life insurance companies in the total asset structure over the last few years, highlighting the increased participation and rising interest of prospective policyholders. “The total gross premiums of the entire industry witnessed a significant increase of 12.5 per cent in CY09, translating into a higher stock of investments and liquid assets,” said the report. Given the mismatch in the nature of long-term liabilities generated by the life insurance contract and the relatively shorter tenor of assets (in terms of requirement of rollover, and hence reinvestment risk) that the premiums are invested in, the life insurance business poses greater potential risks to financial stability than conventional non-life insurance products, said the report. Furthermore, as opposed to non-life insurance, the demand for life insurance is based on several factors which vary from economic to demographic, and have a substantial influence on performance of life insurance companies. The report said like other components of the financial system, the insurance sector is also affected by issues related to adverse selection, moral hazard, and market asymmetries and failures. -Agencies
Samba Bank, NJI ink accord Staff Reporter KARACHI: The Samba Bank Limited (SBL) has partnered with New Jubilee Insurance Company Limited (NJI) for Bancassurance distribution. The agreement was signed by Samba Bank Limited President and CEO Tawfiq A Husain and NJI Managing Director Tahir Ahmed in the presence of senior management from both entities. Commenting on the occasion, Husain said, "At Samba Bank Limited, we constantly endeavour to enhance our customers' value proposition by
increasing the benefits available to them. We are, therefore, delighted to be partnering with the highly reputable NJI to introduce Bancassurance products for our customers. We believe this will be an important step in our ongoing efforts to widen our product offering." Ahmed said, "Bancassurance provides an ideal opportunity to introduce personal insurance products to individuals which otherwise is difficult and cumbersome. The agreement with Samba Bank will go a long way in achieving this objective by providing insurance services to the bank clients."
KSE: Insurers under pressure last week Staff Reporter KARACHI: Insurance stocks followed the overall trend of profit-taking last week at the Karachi Stock Exchange (KSE) with 9 million shares traded together in life and non-life. Adamjee Insurance was the volume leader with 4.44 million shares followed by Pak Reinsurance with 3.89 million
shares. Top gainers include Adamjee Insurance which gained Rs1.54 to close at Rs95.02 and Crescent Star Insurance Rs1.2 to close at Rs5.70. Moreover, Central Insurance lost Rs9.42 to close at Rs73.08 and IGI Insurance Rs3.2 to close at Rs91.08 to be the major losers of the week.
French insurers see weak growth PARIS: France's 207 billion euro ($283.7 billion) insurance market will likely post weak growth this year in an environment of slowing appetite for savings products, France's insurance industry body said on Thursday. The market will likely grow between 0 and 2 per cent overall, with life-insurance growth seen at between 0 and 4 per cent, the FFSA's head of research said at a press conference. "We are not at all optimistic," Jerome Cornu said. Even setting aside uncertainty over tax proposals by President Nicolas Sarkozy's administration that might target savings, Cornu said that an expected decline in household savings rates would hurt the market this year. An upcoming rise in the "Livret A" regulated bank account rate will also add to competitive pressure from lenders as insurers fight to attract savings in an environment of rock-bottom interest rates, Cornu added. -Reuters
Insurance firm IPO to test battered UAE market ABU DHABI: Abu Dhabibased Insurance House is planning a small initial public offering (IPO) in February, banking sources said, the latest company to test investor demand after a drought of stock market listings. The United Arab Emirates has not seen an IPO in about two years as the global economic downturn and Dubai's debt crisis dented investors' appetite. Insurance House, a unit of Abu Dhabi-listed Finance House FH.AD, is planning to raise 66 million dirhams ($18 million) by listing on the Abu Dhabi Securities Exchange (ADX), the sources said. Another Abu Dhabi-based firm Eshraq Properties is also planning an IPO in February, Reuters reported earlier this month. Eshraq plans to sell a 55 per cent stake worth an estimated $224 million in the IPO and list on the Abu Dhabi stock exchange. "Approval has been secured from the Emirates Securities Authority and the (Insurance House) IPO will be launched on Feb. 16 for 14 days," an Abu Dhabi-based banker who did not want to be identified told Reuters on Wednesday. The founders will retain 45 per cent of the company's shares, offering 55 per cent to the public, said the banker. The company's share capital is 120 million dirhams. UAE handset retailer Axiom Telecom cancelled its IPO in December, citing "market conditions and liquidity" concerns. Axiom had hoped to debut on NASDAQ Dubai in early December with a market value of up to $1 billion. National Bank of Abu Dhabi and Finance House are acting as the lead receiving banks for Insurance House's IPO along with Mashreq Bank. Finance House officials declined to comment on the IPO plans. Reuters
Italy's Zoggeler reacts as he finishes in team relay race at World Championships in Cesana Pariol.
9
Monday, January 31, 2011
England Woakes rocks Australia Monitoring Desk BRISBANE: A six-wicket haul for English second-gamer Chris Woakes foiled Australia's plans to post an imposing score in the fifth one-day international against England in Brisbane on Sunday. Leading the series 3-1, at the Gabba Australia's batsmen paid the price for poor shot selection and the home side blew a good start to struggle to 249 after winning the toss and electing to bat. The downside for England was an apparent hamstring injury to young paceman Ajmal Shahzad while bowling late in the innings. Shahzad, a member of England's World Cup squad, limped off at the end of his eighth over, having pulled up sore four deliveries earlier. The 21-year-old Woakes, recalled to replace spinner Michael Yardy, rattled the Australians with 6-45, his victims including four of the top six batsmen, among them captain Michael Clarke, who had finally shown some form with the bat. It was only the second sixwicket haul by an English bowler in ODIs, the other by Paul Collingwood. Woakes started the rot for the home side when he had dangerous opener Shane Watson caught at point for 16 with the score on 48. He later removed Clarke (54), Cameron White (16), David Hussey (34), John Hastings (13) and Brett Lee (0) as the home side lost its way. Clarke showed signs of a long overdue return to form by top-scoring for the Australians, but fell when his team needed him to accelerate the innings in the last 10 overs. Leading the side in the absence of the injured Ricky Ponting, Clarke was booed by local fans when he came out to bat. It was the culmination of a poor season where he previously posted just one score over 50 for Australia, having been out of form in Test cricket, ODIs and Twenty20s. Agencies
Injury forces Bracken to retire SYDNEY: Australian limitedovers specialist Nathan Bracken announced his retirement from cricket, in Sydney, on Saturday. The New South Wales leftarmer, a key member of Australia`s World Cup-winning team in 2007 in the West Indies, played 116 one-day internationals and five Tests, plus 19 Twenty20 internationals. A reliable seamer who excelled in the shorter forms of the game, Bracken played his last game for Australia against England at Nottingham in September 2009 and cited knee injuries for his decision to call it quits at the age of 33. Bracken said he had investigated ways to continue playing, but received medical advice that he should retire. "I really have enjoyed my cricket both internationally and domestically, but unfortunately knee injuries have taken their toll," Bracken said. "I have had a strong rehabilitation from my last operation and have also looked at altering my bowling action to reduce any further damage in my knee and which would have enabled me to continue playing, but it hasn`t responded." -Reuters
Djokovic destroys Murray in final MELBOURNE: Novak Djokovic won his second Australian Open title, breezing past Andy Murray 6-4, 6-2, 63 Sunday to extend Britain's near 75year drought in men's singles Grand Slams. Murray has now been runner-up in three Grand Slam finals -- losing to Roger Federer at both the 2008 U.S. Open and the 2010 Australian Open before his third disappointment Sunday which enabled Djokovic to add to his 2008 Australian title. Djokovic had to overcome some big obstacles en route to the final, including a win over Federer in the semifinals. And this came just two months after leading Serbia to its first Davis Cup title. "We have known each other for such a long time," Djokovic said of his Scottish rival. "It was difficult tonight." Murray has not won a set in a Grand Slam final. Last year, Murray had tears after his loss to Federer. They weren't visible this year, but the hurt may have been just has bad after he lost seven straight games through the end of the first set and into the second and never appeared to be in the match. The last British man to win a Grand Slam singles title was Fred Perry at the 1936 U.S. Open -- more than 270 majors ago. Murray appeared to have some problems with his eyes during the match, rubbing them frequently during changeovers. But there was no mention of any problems in his presentation speech. "I'll try to keep it together this year," Murray said, speaking confidently and
talking about "having more chances in the future" as the crowd yelled out "Andy, Andy." "It was better than it was last year," Murray added at his media conference.
"You always have to try to find a way, to believe," Murray said. "When I got ahead in some games, even in just points, he was sticking up lobs that were landing on the baseline, passing
er. At the coin flip ahead of the match, Djokovic smiled broadly for photos while Murray looked fidgety and nervous. After the match, the two hugged,
MELBOURNE: Novak Djokovic of Serbia (R) holds the winner's trophy after beating Andy Murray of Britain (L) who poses with the runner's-up shield after their men's singles final on the fourteenth day of the Australian Open tennis tournament.-Reuters
"I thought Novak played unbelievably well. It's tough, but you have to deal with it." He said he tried to get himself back into the match, but Djokovic defended so well.
shots that were on the line. I broke his serve twice in the third set and still lot 6-3." Murray and Djokovic, who are each 23 and were born a week apart, are good friends and often practice togeth-
then Djokovic threw his racket, his shirt and then his shoes into the crowd. The roof was closed on Rod Laver Arena for most of the day due to 38 Celsius (100 Fahrenheit) temperatures, but was opened just before the match
rules WC: Afridi edging ICC out WC match at towards captaincy Eden Garden Monitoring Desk KARACHI: The Pakistan Cricket Board chairman Ijaz Butt in all likelihood will announce Shahid Afridi as the captain of the Pakistan team for the upcoming World Cup although some players back Misbah-ul Haq as the leader. According to sources, Butt has decided to now stick with Afridi as captain although there is still a divided opinion about the fact that some consider Misbah to be a bet-
ter choice. The scales seemed to have heavily tilted in favour of Afridi after the dashing batsman smashed 65 off only 25 deliveries during Pakistan's series levelling win against New Zealand on Saturday. "Butt has come to the conclusion after discussing the captaincy issue with the team management and others that it would be unwise to change the captain at such a stage and since Afridi has been the ODI captain since late 2009," a source indicated.
He said the board would most likely end the captaincy debate by announcing the captain in next 24 hours. There was plenty of debate in the cricketing circles after the PCB announced the World Cup squad of 15 players last month but didn't name the captain. Many former players consider Afridi to be too temperamental to be given the responsibility of captaining in the World Cup and others warning against changing the captain at so late a stage.
KARACHI: Group picture shows Chairperson Dia Women Football Club Sadia Shaikh, Raees Khan, Wahid Baloch, NAseem Shaikh, Afshan Altaf. Amrin Hamid, Rukhsar Rashid, Naizia Naz, Iffat Batool, Fatima Ansari, Hina Jawed, Maryam with Under 16 Senior & Junior Players at the time of announcement of U-16 Team.-Staff Photo
NEW DELHI: The ICC has formally conveyed to the BCCI about its inability to hold the India vs England World Cup match at the Eden Gardens on February 27. The BCCI issued a release of ICC conveying its inability to hold the match at Eden Gardens on February 27. The Cricket Board said it has recommended Bangalore as the alternate venue for the match. "The ICC has conveyed to the BCCI that it will not be able to hold the India Vs England match of the ICC CWC 2011 at Eden Gardens, Kolkata, on 27 February 2011. "The BCCI has recommended Bengaluru as the alternate venue," BCCI Secretary & President-Elect N Srinivasan said in the release. The hectic political lobbying that was on for the past 48 hours since it was announced that Eden's marquee match will be shifted went in vain with the BCCI announcing ICC's verdict. The last ditch effort by West Bengal Chief minister Buddhadeb Bhattacharjee didn't yield any results. Since morning, there were rumours in the CAB corridors that ICC might just consider the plea to extend the deadline of completion of work till February 7.Agencies
started and after the weather had cooled significantly. Trailing 5-4, Murray double-faulted to lead off the 10th game of the first set. Then he hit a backhand into the net after a 39-hit point. Murray challenged the final point of the set when he thought his forehand stayed in on the backline, but Djokovic walked away with the set in 59 minutes. Djokovic held serve on four straight points to open the second set, then went up 2-0 when he again broke Murray's service, finishing off the point when Murray's attempted drop shot was returned crosscourt for a winner. Murray had five unforced errors in the first two games. The Serbian player went up 3-0, then continued his domination in the next game, breaking Murray in four straight points to go up 4-0 and held for 5-0, his seventh straight game win. Murray finally stopped the streak with an ace on game point to trail 5-1, then broke Djokovic in the next game to cut the margin to 5-2. The third set started with Murray's second break of Djokovic's service in the match, but Djokovic ensure that Murray's advantage was short-lived by breaking him in the next game. After an unforced error wide, Murray pounded his fist and yelled out in disgust. Things didn't improve for Murray, who held off six break points before Djokovic prevailed on the seventh in the fourth game, hitting a backhand down the line to pass a stretching Murray. Djokovic pumped his fist and let out a loud yell in celebration.Reuters
‘India WC squad got most of the match-winners’ NEW DELHI: The Indian team for the 2011 World Cup is one of the most well-balanced units comprising maximum number of match-winners, according to 1983 World Cup winning team member Syed Kirmani, who feels it is the best chance for the Men In Blue to bag the coveted title. "All the players from top to bottom are match-winners. Anyone from the group is capable of winning the match for the country. Starting from captain (Mahendra Singh) Dhoni to iconic batsman (Sachin) Tendulkar to devastating (Virender) Sehwag to (Gautam) Gambhir, Yuvraj (Singh), Suresh Raina or Yusuf Pathan ... it could be just anyone." "We have an extremely wellbalanced team and the best part is everyone seems to be in form," Kirmani told reporters. Asked if a second wicketkeeper could have been a good option in case of an injury to regular Mahendra Singh Dhoni, the former stumper said it was not at all a worrying factor. "We are playing in the subcontinent and in our own environment so it would not be too
difficult to bring in a replacement wicket-keeper immediately in case of a casualty. So, probably taking this fact into consideration, the selection committee did not go in for a second wicket-keeper," he said. Stating that the current Indian squad is one of the favourites to lift the Cup, the 61-year-old said he has been hoping and praying for the last 28 years for the country to bring back the glory. "We have a very good chance this time as our side is a very competent one. They are equally competent, if not more, than some of the other teams. We have been hoping and praying for the last 28 years for India to lift the Cup again and it seems that this team has it in them to fulfill the wish," said the former India Test cricketer. Kirmani admitted that the four-time World champions Australia will be a weaker side compared to India, South Africa and England in the upcoming mega-event but cautioned that the Kangaroos can never be taken for granted.Online
This could be Tendulkar’s World Cup "
Mushy, bas ye ek hi wicket hai," bellowed Pakistan's combative wicket-keeper Moin Khan as Sachin Tendulkar arrived at the crease in the World Cup clash at Sydney in 1992. Despite the presence of other stalwarts in the team, Moin felt it prudent to alert leggie Mushtaq Ahmed about the benefits Pakistan would reap if they dismiss the then 18-yearold Tendulkar early. That Pakistan couldn't and Tendulkar scored a matchwinning 54, is mere statistic. What was more revealing was the attention he commanded even at such a young age. Circa Centurion 2003, a raging Tendulkar was making a
mockery of a sizeable target of 274 and a potent Pakistan bowling attack, en route to a regal 98. The knock wasn't without alarms though. While on 46, Akram deceived Tendulkar with a slower ball and the batsman checked his drive but Abdul Razzaq at mid-off jumped too late and dropped the catch. "B*****d, tereko pata hai batsmen kaun hai," was Akram's furious response to Razzaq. Twelve years and three World Cups later, Tendulkar remained the man to get. After graduating from a middle-order batsman to opening in ODIs, he was breaking records out of habit and had become the biggest scalp for
bowlers and India's pulse. A Tendulkar ton had the potential to prompt even the most corrupt babu to work without accepting a bribe! His legend though had started to gain root just before the 1996 World Cup came to the sub-continent for the second time. Tendulkar had just signed a $10million deal with World Tel. In the World Cup, he justified the hype and the billing, scoring the tournament's highest run tally (523 runs in 7 matches). India's dependence on him was growing. And no where was it more prominent than in the semifinals . Till he was at the crease, the Eden Gardens pitch appeared
docile. The moment he fell for 65, the pitch metamorphosed into a minefield where every Sri Lankan bowler appeared to be hurling a bomb and India crashed out. As the 1999 edition in England drew closer, Tendulkar had gone past Desmond Haynes' record for most centuries in ODIs. He had had by far his best year in international cricket (1998). He had gained and lost captaincy and had been introduced to injuries. An attacking and talented opening partner, Sourav Ganguly, had been unearthed along with a solid middle-order batsman in Rahul Dravid. The team's over-reliance on Tendulkar
though remained a constant. But he failed to get going, barring the game against Kenya where he scored an emotional century after his father's death. Not surprisingly, India exited at the Super Six stage. After another failed dalliance with captaincy post the World Cup, his game blossomed under the John WrightGanguly regime. Success chased India and Tendulkar in the West Indies and England, but just months before the 2003 World Cup, a disastrous tour of New Zealand followed. With Dravid being asked to keep wickets and acting as a finisher along with Yuvraj Singh and Virender Sehwag
finding his feet as ODI opener, Tendulkar was asked to bat at No. 4. Although he scored runs there, he was happier at the top. Post India's loss to a second-string South African side in a warm-up game, coach Wright sought a one-on-one with Tendulkar and restored his opening spot. The Kiwi realized that a happy Tendulkar was key to India's fortunes. Tendulkar's massive stature prompted the team management to request him to address the nation prior to the match against Zimbabwe at Harare after fans attacked players' homes and families following India's humiliating defeat against Australia in the group stage at Centurion.-Agencies
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EMERGING MKT COMPANIES BUY UP THE WORLD T
here's a new swagger among the bosses of emerging market companies as they sign cheques for a growing list of acquisitions in both the developed and developing world. And this is just the start. After suffering less in the downturn and rebounding faster than their US and European counterparts, corporations from China to Mexico are taking advantage of their strength to go shopping for an ambitious range of businesses. Emerging markets are, more than ever, a key topic at the annual meeting of the World Economic Forum in Switzerland. Traditionally, most focus has been on Western firms buying assets in fast-growing developing economies, to hedge against sluggish growth at home. But it is a two-way street and, increasingly, emerging market firms are shopping in the developed world as they move up the value chain and pursue their own diversification. "The three words that characterise the last decade have been 'Made in China'. The three words that are likely to dominate the next decade will be 'Owned by China'," said Gerard Lyons, chief economist at Standard Chartered. "And by the time we move to the 2020s it will be 'Paid in renminbi'." China may grab the most headlines, but it is not alone. Acquisitive companies from India, Mexico, Russia, Brazil and South Korea are also on the prowl. Take Indian wind turbine maker Suzlon Energy, which owns 91 per cent of Germany's REpower and whose chairman, Tulsi Tanti, says he can "leverage huge synergies" through matching REpower's tech-
nology with low-cost components. Or Apollo Tyres, another Indian manufacturer that acquired businesses in the Netherlands and South Africa because, in the words of chairman Onkar Kanwar: "We are hungry and passionate and want to do things." CARS AND BREAD In the five years since China's Lenovo bought IBM's PC business for $1.25 billion, cross-border deals have changed other parts of the industrial landscape -- from cars to bread. Jaguar and Land Rover are now owned by India's Tata Motors, while Mexico's Grupo Bimbo will become the world's largest bread maker when it closes the purchase of Sara Lee's North American bakery business this year. Firms in emerging markets want to move beyond the advantage of cheap labour -- anyway on the decline -- to create global organisations with the skill base found in Western companies. The strategy looks to be working. By 2020, the top 100 stars of the developing world could collectively generate $8 trillion in revenues, roughly equivalent to aggregate S&P 500 revenues today, according to a new report from Boston Consulting Group. The 100 "global challengers" come from 16 countries but China, India, Brazil, Mexico and Russia dominate the list. "These companies see M&A as a path to access technology, to access channels and to access brands around the world," said Mark Foster, global head of management consulting at Accenture. "We have to expect more of this because they've got the cash and, perhaps more importantly, they've
got the confidence." For emerging market firms, investing in sluggish developed world economies is a long-term play that sits alongside a parallel drive to snap up targets in other developing economies. In that space, however, they are competing with Western multinationals whose growing appetite for assets in the world's big developing economies has driven up prices. Last year, emerging markets accounted for 33 per cent of the world's $2.4 trillion tally of all mergers and acquisitions -totalling $806 billion, or a 76 per cent increase over 2009, according
to Thomson Reuters data. Much of the activity was focused on resources, where China's stateowned firms, backed by soft loans, have made a land-grab for commodities, often in competition with India. Asian groups like Sinopec of China and Thailand's PTT Exploration and Production struck deals last year ranging from buying stakes in oil fields to Korea National Oil Corp's hostile takeover of Britain's Dana Petroleum. Helped by strong currencies, emerging market companies are also contemplating chunky deals in more advanced sectors.
DIALLING UP DEALS Significantly, the biggest deal of any kind in 2010 was America Movil's $27.5 billion purchase, including debt, of Carso Global Telecom -- a tale of Latin American empire building by Mexican tycoon Carlos Slim. India's Bharti Airtel, meanwhile, became the world's fifth largest mobile operator, by subscribers, after buying Zain's African operations for $9 billion in 2010, and Russia's Vimpelcom is locked in its own fight for overseas expansion. Things don't always pan out as planned for the new players. Last year's $1.8 billion pur-
chase of Ford's Volvo unit by Geely was a notable win for "China Inc", but earlier this month Xinmao threw in the towel on a 1 billion euros bid for Dutch cable maker Draka. The odd setback and current fears of over-heating in some emerging markets are not likely to derail a key part of what Jim Quigley, CEO of Deloitte Touche Tohmatsu, describes as "the next phase in globalisation". "What the US and the UK accomplished in a 200-year span since the Industrial Revolution, we are going to watch China and India accomplish in a 30-year span," he said.-Reuters
S&P's Japan debt downgrade could help PM reform push
S
tandard & Poor's downgrade of Japan's debt could be a blessing in disguise for Prime Minister Naoto Kan as he tries to tackle tax reforms to curb huge public debt while dodging calls to quit or call a snap poll. S&P cut its rating on Japan's long-term sovereign debt by one notch to AA minus on Thursday and economists warned the consequences could be felt worldwide if Japan failed to get its fiscal house in order. Kan, who took office last June as Japan's fifth premier since 2006, has made social security and tax reform, including a future rise in the 5 per cent sales tax, his priorities this year and is urging opposition parties to join in talks on the topics. Earlier this month, he drafted ex-finance minister Kaoru Yosano, a fiscal hawk who had been among the ruling Democratic Party's (DPJ) harshest critics, to help push those efforts.
But with Kan's voter support sagging at around 30 per cent, opposition parties who control parliament's upper house have been disinclined to compromise -- though many agree a sales tax rise is both necessary and inevitable. "This makes it easier for Kan, in the sense that something must be done (about fiscal reform). It gives a tailwind to Yosano and makes his policies easier to justify," said Tomoaki Iwai, a professor at Nihon University in Tokyo. "In that sense, it is a plus." Nomura Holdings Chairman Junichi Ujiie, speaking on the sidelines of the World Economic Forum in Davos, Switzerland, echoed that view. "(The downgrade) was not a big surprise. But it will make it easier for Yosano to push through laws on fiscal reform," he said. Yosano said the downgrade should serve as a call to action.
The government, he said, was serious about fiscal reform and the sales tax was lower than that of other countries. "(S&P) thinks we have a weapon we are not using," he said. "The downgrade is a demand fo us to act quickly." FIRST, THE BUDGET Whether Kan seizes the moment, however, remains in doubt. Asked by reporters to comment on the downgrade, Kan said: "This is the first I've heard of this. I just came from a plenary session in parliament and I'm not very familiar with the matter, so please ask me about it later." Kan's first challenge is to persuade opposition parties to help enact budget-related bills needed to implement a record $1 trillion budget for the 2011/12 fiscal year from April 1. Opposition parties control parliament's upper house, where they can block bills, although the budget itself can be enacted after approval by
the lower house, where the DPJ has a majority. Some pundits have said Kan might be forced to resign or even call a snap election if the budget-related bills get stuck. The biggest opposition
group, the Liberal Democratic Party (LDP), is talking tough to try to force an early general election. The No. 2 opposition party, New Komeito, has criticised the budget, but left the door open to vote for related bills.
"If they simply keep opposing everything, the public will get angry," Iwai said. "The opposition are also in a pinch. They can't compromise immediately because debate has just begun, but voters are tired of the confu-
sion." The S&P downgrade could help persuade the opposition to join talks on tax and social welfare reform, although probably not until after nationwide local elections in April. "Public opinion might actually get more critical of the LDP for being obstructionist," said Sophia University professor Koichi Nakano. "This might help get the opposition to the table." The ratings move could also give Kan ammunition against his critics inside the DPJ, who argue the party should keep campaign promises to give consumers more cash to boost growth and shun tax hikes until more effort has been made to cut waste. "This is, of course, just one piece of news from S&P and it won't resolve all of the policy differences in the DPJ, but Kan needs helpful news and this might be something in his favour," Nakano said.Reuters
Indian consumer firms eye Africa as next growth driver
I
ndian consumer goods makers are scrambling to buy assets in Africa, applying their knowledge of challenging, lower-income markets to a continent where spending power is on the rise. Tapping Africa opens up new growth avenues for cashrich Indian makers of personal care products such as soaps, shampoos, hair and skin care products, with rising costs and fierce competition squeezing profits at home. "We are a homegrown multinational from a developing economy," said Jimmy Anklesaria, executive vice president for international operations at Godrej Consumer . "Our ability to understand consumers in developing economies is sharp." Godrej bought Nigerian personal care products maker Tura last year for around $33
million, according to analysts, and has also bought hair care brands Rapidol and Kinky in South Africa over the past two years and is on the hunt for more acquisitions. Companies and countries looking to buy up its natural resources has long dominated foreign investment in Africa. Two blockbuster deals last year -- India's Bharti Airtel paid $9 billion for the African cellular assets of Kuwait's Zain and Wal-Mart's deal to buy South African retail chain Massmart for $4 billion -show the allure of the continent's rising spending power. That potential market has intrigued Indian makers of consumer goods such as Godrej, Dabur India , Marico and Emami , who have been among those buying up assets. "There will be many more acquisitions made by Indian companies in the consumer
space in the coming months," said a senior banker with Indian investment bank, which recently advised an Indian firm on a M&A deal in Africa. "We can expect some midsized acquisitions in early 2011." RISING SPENDING POWER African consumer spending will nearly double to $1.4 trillion by 2020, while the number of households in Africa with discretionary income will rise by 50 per cent to 128 million over the same period, a recent McKinsey and Co. report predicted. Indian companies hope to use their experience developing and selling products in markets where affordability is crucial to compete with global players such as Anglo-Dutch giant Unilever , which recently struck a deal to buy Sara Lee Corp's operation in
Kenya. "Africa is currently witnessing growth rates that India witnessed about 10-15 years back," said Anand Raghuraman, partner and director at the Boston Consulting Group. A sizeable population of Africans of Indian origin in eastern to southern Africa give Indian companies an advantage over global competitors, including China. Whereas global players sometimes sell one-size-fits all products, Indian manufacturers often adjust their offerings to suit local tastes and spending habits. "The product portfolios of Indian companies are tweaked to suit local needs," said Debashish Mukherjee, principal with consultancy AT Kearney. India was the most acquisitive company in sub-Saharan
Africa in 2010, accounting for a third of the total value of deals done in the region, according to Thomson Reuters data. That was due mainly to Bharti Airtel's purchase of Zain's African assets. RISKS AND GROWTH Risks to Indian firms making acquisitions in Africa include overpaying in the competition for scarce attractive targets. Both the Bharti and Wal-mart deals were widely seen to be expensive. Africa also remains price sensitive, so a spike in commodity prices would squeeze margins. "In lowincome countries, consumers spend a high proportion of their income on food and if prices shoot up as they did in 2007/08, they will immediately stop buying anything that's not essential," said Boris Planer, research director at Planet Retail. Still, Indian consumer goods
firms active in Africa expect growth of between 25-30 per cent from their operations there, and expect opportunities to move beyond personal care to household care and overthe-counter healthcare products in coming years. "Amongst all the Indian companies who are moving into Africa, Godrej and Dabur are best positioned to benefit maximum from the Africa story," given the early-mover advantage, said Shirish Pardeshi, a senior sector analyst with brokerage Anand Rathi. SCRAMBLE There is plenty of Indian competition for African assets. Emami, which won board approval in October to invest $1 billion to buy assets overseas and in India, is looking for more deals in markets including South Africa, Kenya and Nigeria, Group Director Harsh
Agarwal told Reuters. Marico, with cash of $480 million, said it is looking to buy assets in North Africa and South Africa, while Godrej, with cash of $537 million as of end September, continues to hunt for buys across Africa. Dabur, one of the most active Indian players in Africa, is sitting on cash reserves of $873 million and recently brought out US-based personal care products maker Namaste Labs and its two African units for $100 million. It is looking for assets in the $10-$50 million range in South Africa, Nigeria, Kenya, Ghana, Mozambique and Tanzania, said Sunil Duggal, its chief executive officer. "Africa is a good hedge for what is happening in the Indian markets and now asset valuations there are attractive compared to India," he said. Reuters
Tunisia's leading Islamist to end exile
TEHRAN: Iranian lawmaker casts his vote in Iranian parliament.-Reuters
UK minister defends cuts as public criticism grows LONDON: Britain's finance minister and his opposition party counterpart clashed on Sunday on the pace of austerity cuts, after a series of negative economic data and a slump in the government's popularity. Finance minister George Osborne renewed his commitment to the tax increases and spending cuts his Conservative-led government hopes will eliminate Britain's record budget deficit -about 10 per cent of national output -- by 2015, despite figures issued on Tuesday showing an economic contraction. Inflation at 3.7 per cent is almost double the Bank of England's target, and British consumer morale tumbled to its lowest in almost two years in January, one survey showed. Opinion polls in the past week showed rising support for the opposition Labour Party and growing economic pessimism. "If on Monday morning I went to parliament ... and said, 'I'm abandoning the deficit reduction plan that Britain set out last year', what do you think the reaction would be?
Within minutes Britain would be in financial turmoil," Osborne said in a BBC interview to be aired on Sunday. "I'm not prepared to let that happen. It requires tough, difficult decisions. No politician likes cutting spending, increasing people's taxes, but I was delivered a mess by the previous government and I'm trying to clear it up." Labour Party finance spokesman Ed Balls, in a media offensive on Sunday, criticised the government for cutting spending too far and too fast, and having no back-up plan. BANKERS' BONUSES "The fundamental issue on growth is what's happening to the economy, and you've got the continuing (government) denial, claiming that there would be turmoil if they were to (not) cut spending now," Balls told the BBC in an interview. "George Osborne, the only plan B he needs to get right now is ... to stop the drastic scale of these spending cuts, to look again at these tax rises, and realise that if people aren't in work paying taxes,
you can't get the deficit down," he added. In a letter to the Independent on Sunday newspaper, he called on the government to reinstate a tax on bankers' bonuses, which under the previous Labour government raised about 3.5 billion pounds ($5.6 billion). A Reuters/Ipsos MORI poll on Thursday showed support for Labour at a three-year high, a sharp drop in support for the Conservatives, and a new low in economic optimism. An Angus Reid poll for the Sunday Express newspaper put support for Labour at 43 per cent, 11 per centage points higher than the Conservatives at 32 per cent. The Liberal Democrats, the Conservatives' partners in government, were on 11 per cent. The right-leaning News of the World newspaper said business groups did not believe cuts alone would fix the economy. Signs of growing unpopularity could be an ominous sign for the Conservatives before local elections in May which will be an important gauge of support for the government a year after it took office.-Reuters
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This year saw cautious optimism come back to the Davos Annual Meeting after two years of worries and fears on global economic crisis. World leaders generally take emerging markets like China, India and Brazil as significant driving forces for the world economic recovery, and the developed countries as stragglers with problems of sovereign debt and budget deficits hanging over in the coming years. China attracted even more attention during this year's meeting than the previous years as it becomes a leading emerging market, with particular attention on its participation in the global trade as this year marks the 10th anniversary of China's accession into the the World Trade Organization (WTO). According to officials with the WEF, the Davos Annual Meeting provides a rethinking of our systems and exploration of strategies and solutions that have positive transformational implications.-NNI
No #2
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The Parliamentarians would seek a categorical assurance from the Government that Raymond Davis would be tried in Pakistan according to law of the land. Some of the members when contacted told this agency that they would like to know the real name of the American, what he was doing in Lahore and whether he is a diplomat or a CIA agent. They said they would in no way allow his deportation to the United States citing examples that many Pakistanis including Dr Aafia Siddiqi are in American jails and not being deported to Pakistan.-Agencies
No #3
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the brunt. Meeting will be attended by Sardar Mehtab Haider, Khurram Dastageer, Haji Adeel, Munir Khan Orakzai, members from MQM and authorities of petroleum ministry. -Agencies
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Sri Lanka 6.9 and China, the leading economy of the world as well as in the region has contained its inflation rate at 4.5 per cent. The rationale of inflation in Pakistan is whispered as intermittent raise in petroleum products' prices, which serves as the reason of ultimate increase in all stuff prices including commodities. It is also asserted in the report that all previous records of inflation in Pakistan are expected to be broken if government goes ahead with further increase in petroleum prices. -Agencies
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anything. Meanwhile, talking to media persons here PM Gilani said Punjab government is investigating the issue and nothing could be said until the report comes. He said he has spoken to Chief Minister Shahbaz Sharif about the whole case. He said that ministers cannot be sacked merely on corruption charges as that would be an invitation to dictatorship. Prime Minister pointed out that corruption allegations had been leveled in the past against politicians including Zulfiqar Ali Bhutto, Benazir Bhutto, Mohammad Khan Junejo and Nawaz Sharif but those could not proved. He said corruption could be checked with the strengthening of institutions, an independent judiciary and free media. He said the present government was working according to constitution and the law and strengthening the institutions. Replying to a question, Gilani said reservations of Nawaz Sharif about implementation of ten point agenda would be addressed to his satisfaction. -Agencies
Hafeez Kardar, Governor SBP said while explaining the rationale behind keeping the policy rate unchanged. It is worth mentioning that last time in November central bank raised the interest Continued from page 1 No #9 rates by 50 bps to 14 per cent. Director Karachi Stock Exchange Russians at Red Sea resorts had no intention of cutting short Zafar Moti and senior member Siddique Dalal also welcomed the said step and said that stock market would see some positive reac- their holidays. "The US embassy in Cairo informs US citizens in Egypt who wish to depart that the Department of State is making tion today (Monday) in wake of this unexpected decision. arrangements to provide transportation to safe haven locations in Continued from page 1 No #4 Europe," the US statement said. has said he killed the Governor over his support for reform. Turkey is sending three Turkish Airlines planes to Egypt, one to Under intense pressure from religious parties, government has Cairo and two to Alexandria, to evacuate its 750 citizens, the since said it had no intentions to amend the law. Demonstrators state-run Anatolian news agency quoted embassy officials in from religious parties Jamat-e-Islami, Jamiat Ulema-e-Pakistan Cairo as saying. Britain hardened its advice to Britons in Egypt, and Jamatud-dawa held banners in support of Mumtaz Qadri - the advising nationals to leave Cairo, Suez and Alexandria" where it police commando who shot dead Taseer. Participants chanted slo- is safe to do so." It said there were no plans to evacuate British gans including "Free Mumtaz Qadri", "We are ready to sacrifice diplomatic staff. China issued a warning to its citizens in Egypt, our lives for the honor of Prophet Mohammad" and "Changes in urging Chinese travelers to reconsider their plans or seek assisblasphemy law not accepted." -Agencies tance from the Chinese embassy. In Brussels, Foreign Ministry said it was advising Belgians not to travel to Egypt but did not Continued from page 1 No #5 million, resulting in net buying of $6.32 million during the last believe it was necessary to evacuate its citizens. It said about 750 week. Furthermore, other organisations and banks remained on Belgians lived in Egypt. Most of the estimated 40,000 Russians holidaying in Egypt, the buying side with shares worth $4.60 million and $4.32 million respectively. On the other hand, biggest weekly selling were wit- mostly in resorts around Khurgada and Sharm-El-Sheik, have no nessed from local individuals which sold $174.86 million of plans to cut short their trips despite the unrest, the acting head of shares in the local bourse against the buying of $167.19 million, the Russian Federal Tourism Agency, Alexander Radkov, told Interfax news agency. Development: World leaders stepped up the thus turning the net selling worth of $7.67 million. Moreover, companies, NBFC and mutual funds also net ejected pressure on Egypt's President Hosni Mubarak, as fresh violence pushed up the death toll from five days of unrest. $5.31 million, $1.19 million and $1.08 million respectively. Britain, France and Germany appealed to the embattled leader Continued from page 1 No #6 to avoid violence and listen to his people's grievances, as the damages may swell especially if prices in international markets United States warned that without real reforms, his government reshuffle would be insufficient. adopt the upward trend. British Prime Minister David Cameron, French President It may be noted that last committee meeting ended up without any progress and rejected the government's proposal of 13 per Nicolas Sarkozy and German Chancellor Angela Merkel issued cent raise in petroleum prices viewing that public would not bear their joint statement. "We call on President Mubarak to avoid at
TUNIS: A leading Tunisian Islamist was due to return from 22 years in exile on Sunday in one of the most powerful symbols to date of the change that has swept the country since protesters ousted its president this month. Sheikh Rachid Ghannouchi, head of the Ennahda movement, has lived in London since he was exiled in 1989 by president Zine alAbdine Ben Ali, who was toppled on January 14 by popular protests that have sent political tremors across the Arab world. "Our role will be to participate in realizing the goals of this peaceful revolution: to anchor a democratic system, social justice and to put a limit to discrimination against banned groups," Ghannouchi told Reuters a day before his return. "The dictator has fallen and I want to be in the country," he said. Ennahda, which likens its ideology to that of Turkey's ruling AK Party, was the strongest opposition force in Tunisia before the crackdown that forced Ghannouchi out of the country. However, the Islamists did not appear to be a leading force in the wave of protests that toppled Ben Ali. It has yet to be seen whether Ghannouchi's return can galvanise the party. Protests have largely dried up in the last few days following the announcement of a new interim government purged of most of the remnants of Ben Ali's regime. The security forces have sought to restore order to the capital, where confrontations between shopkeepers and protesters have indicated dwindling support for demonstrators from Tunisians who want life to return to normal. The interim government has yet to set a date for new elections. Ennahda officials have said the party will take part in parliamentary elections, and analysts say it could emerge as a major political force in the vote. However Ennahda will not nominate a presidential candidate and Ghannouchi, 69, has said he does not want to run for any public office. His movement, founded in 1981, is seen as moderate by experts on Islamist movements. Tunisia has imposed a secular order since independence from France in 1956. Habib Bourguiba, the independence leader and long-time president, considered Islam a threat to the state. Ben Ali eased restrictions on the Islamists when he seized power in 1987, before cracking down on them two years later. "We are taking part so we can move from a one-party system to a true multiparty system without corruption or oppression."-Reuters
Over 99pc of south Sudan votes to separate JUBA: South Sudan overwhelmingly voted to split from the north in a referendum intended to end decades of civil war, officials said on Sunday, sparking mass celebrations in the southern capital Juba. Thousands cheered, danced and ululated after officials said 99.57 per cent of voters from the south's 10 states chose to secede, according to the first official preliminary results. "This is what we voted for, so that people can be free in their own country ... I say congratulations a million times," south Sudan's president Salva Kiir told the crowd. The vote was promised in a 2005 peace deal which ended decades of north-south conflict, Africa's longest civil war which cost an estimated 2 million lives. Kiir, the head of the former southern rebel Sudan People's Liberation Movement (SPLM), praised his former civil war foe, Sudan's over all president Omar Hassan alBashir, for agreeing to the 2005 accord. "Omar al-Bashir took the bold decision to bring peace. Bashir is a champion and we must stand with him," said Kiir, speaking in a mixture of English and the local Arabic dialect. "The project has not finished ... We can not declare independence today. Let us respect the agreement. We must go
slowly so we can reach safely to where we are going," he added. According to the terms of the accord, south Sudan will be able to declare independence on July 9, pending any legal challenges to the results. UNRESOLVED ISSUES Leaders from the SPLM and Bashir's northern National Congress Party (NCP) still have to agree on a list of politically sensitive issues, including the position of their shared border, how they would split oil revenues after secession and the ownership of the disputed Abyei region. "I am so happy. Imagine having schools, no fear, no war. Imagine feeling like any other people in their own country. At least now we feel this is our own land," student Santino Anei, 19, told Reuters. U.N. Secretary General Ban Ki-moon praised north and south Sudan for the peaceful vote but said he was concerned about the unresolved issues. "Peace in north and south Sudan will require statesmanship and patience," he said addressing an African Union summit in Addis Ababa. Secession campaigners described the vote as a chance to end years of perceived northern exploitation. Bashir, who campaigned for unity, later announced he would accept the widely-expected separation vote.-Reuters
India mulls import duty-slashes, but frets over deficit DAVOS: India is concerned about high global commodity and oil prices and will consider cutting import duties on more food products to curb inflation gripping Asia's thirdlargest economy, its trade minister said. India is already allowing duty-free imports of crude vegetable oils and is likely to continue to do so as food price rises remain in the double digits, a worry that has prompted foreign fund managers to pull out of the country's equities. Asked if India would consider cutting more import duties, Indian Trade Minister Anand Sharma told Reuters late on Saturday at the World Economic Forum in Davos, Switzerland: "Yes, when there is a shortage and the inflation is high." "Like where there is a shortage and we don't produce enough, it is but natural (to cut import duties). Why should we import at such higher prices and then subsidize it for the public distribution system?"
Food inflation in India inched up in mid-January to hit 15.57 per cent due to unseasonal rains hitting output of vegetables, such as onions, potatoes and tomatoes -- key ingredients in Indian cooking. Analysts are forecasting more interest rate rises by the Reserve Bank of India, which on Tuesday raised policy rates for the seventh time since last March. Global crude prices soaring toward $100 a barrel are also another concern, Sharma said, due to worries that India's nagging trade deficit could widen further. "Well, everybody would be (worried), especially those dependent on imports," Sharma said. "It has been a matter of concern because in any case, we have a trade deficit." India's goods trade deficit has been wide as it needs to import large quantities of iron and steel, chemicals and machinery to fuel a rebound in industrial growth.-Reuters
all costs the use of violence against unarmed civilians, and on the demonstrators to exercise their rights peacefully," they said in a joint statement. Earlier, US State Department spokesman Philip Crowley warned that the people of Egypt "no longer accept the status quo." "They are looking to their government for a meaningful process to foster real reform," Crowley wrote on Twitter. Saudi Arabia's King Abdullah expressed his support for Mubarak and slammed those "tampering with Egypt's security and stability in the name of freedom of expression," Riyadh's state news agency SPA said. -Agencies
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price plummeting by nearly 10 percent, the maximum allowed by the market regulations. Emaar, which built the world's tallest tower, Burj Khalifa, in Dubai, has various projects in Egypt. Air Arabia also saw its share plunge by nearly 10 percent. The Middle East's largest low-cost carrier has a hub in Egypt for its local joint venture Air Arabia Egypt. Arabtec leading construction firm, which also has projects in Egypt, was also among the companies leading the plunge on DFM, with a 9.5 drop. A mass revolt broke out across Egypt on Tuesday against the decades-long autocratic rule of President Hosni Mubarak, with more than 100 killed in riots and demonstrations over the past five days and much of the country in turmoil. "The drop in the Gulf bourses as a result of the events in Egypt is natural since there are huge Gulf investments in Egypt, especially in the industrial and banking sectors," Kuwaiti economist Ali Al-Nimesh said. Investors in the Gulf Cooperation Council were affected by a negative sentiment, said Monica Malik, senior economist at the Cairo and Dubaibased EFG-Hermes investment bank. The Saudi stock market plunged 6.43 per cent on Saturday, its first day of trading. The market opens later in the day. -Agencies
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that only applies ointment to wounds," he added, asking the participants of today's public meeting to testify that they were not forced to come at gunpoint. The MQM Chief said the fervor visible in the participants of meeting is comparable to the ardor seen during Pakistan movement. "Islam, the religion of peace and harmony, is the religion of Pakistan; Islam is our basis while democracy is the building; positive points of socialism are its bricks and; its beauty comes from controlled capitalism and controlled privatization," he pointed out. Altaf Hussain left it up to the people of the country decide whether they want what he said 'feudal system controlled by 2 per cent population' or 'a literate system of 98 per cent population'. He said only a revolution would usher in an era in which those looting the country and orchestrating kidnappings for ransom are publicly hanged. "The properties of landlords and feudal will not be destroyed rather educational institutions and hospitals will be established there," he said. Altaf Hussain called upon the youth of Punjab to join hands with MQM and urged the 'Army, Rangers and police to stand in support of the poor at the time of revolution.' People would hug you with love, he added. He no politician said anything when the US government demanded repatriation of its 'citizen who murdered three youths'. "Balochistan is also a part of Pakistan and talks should be held with the Baloch people instead of opening fire at them," Altaf Hussain advised. The MQM Chief called for immediate eradication of extortion in Sindh or else 'path of revolution will be adopted'.
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Govt facing problems to take action against terrorists
Malik stresses early passage of Anti-Terror Act ISLAMABAD: Interior Minister Rehman Malik has sought help of chairmen of parliamentary committees and Chairman Senate for the quick approval of amendments in the Anti-terrorism Act, as the federal government is facing problems to take legal action against more than five thousand detained suspected terrorists after the expiry of Presidential ordinance. According to reliable sources, the terrorists could be eliminated and extremists and other elements could be effetely dealt through Anti-terrorist Act as it provides legal formwork to empower the government.
At the moment, the proposed amendment act is under consideration of the standing committee, while the interior ministry hopes the committee will approve the bill quickly to provide legal formwork to the state for the elimination of the terrorism. The sources told Online that the interior ministry requested the standing committees to summon their meetings and approve the bill. However, the members of the sanding committees of Senate and National Assembly raised several objections over various points of the bill including empowering the intel-
ligence and other law enforcement agencies for recording of telephonic and mobile chat of any suspected person, keeping the suspect in custody for ninety days. The members termed these points as against human rights. The sources added that the provincial government of KhyberPakhtunkhwa had written letters to the federal governments for the approval of the bill as more than fifteen to two thousand suspected terrorists were arrested under this act in KP and no legal action is being taken against them due to no protection of the law. -Online
Samjhauta blast case
Will share probe info soon: India NEW DELHI: Indian Home Minister P Chidambaram said Sunday that "some evidence" has emerged in the 2007 Samjhauta blast case and India will share information with Pakistan once the probe is over. According to Indian media, Chidambaram said that India had never said that it would not share information with Pakistan. "We have not said that we will not provide evidence. These are early phases of investigation, once the investigation is complete we will share
the evidence with Pakistani authorities," he said. Chidambaram said that he had conveyed India's position to his Pakistani counterpart Rehman Malik. The minister said that India did not have any indication earlier as to who may have been behind the attack, however, now some evidence had emerged which pointed towards a few suspects. He also said that a right-wing group member Swami Aseemanand had already confessed his involvement in the Samjhauta case.
4500 Workers Restoration
Govt returns favor to KESC Co to get Subsidy on Oil, Gas ISLAMABAD: The federal government approved the demands of the administration of Karachi Electric Supply Company (KESC) in return of the restoration of 4500 sacked employees, it is learnt. Reliable sources told Online that the KESC administration blackmailed the federal government through sacking 4500 employees and gained gas and oil on subsidy rate. After the dismissal of 4500 employees, the federal government sent a team to Karachi for talks with KESC administration. During the meeting, the KESC administration presented its demands for the restoration of sacked employees and demanded to provide oil and gas on subsidy rate. The administration restored the sacked employees when the government accepted the KESC demands.
The sources added that the National Electric Power Regulatory Authority (NEPRA) had clearly mentioned its in decisions taken in 2009 that the NEPRA had approved increase of the KESC power tariff rate 15 paisa per unit for the salaries and other facilities to extra 7406 employees. The Nepra had approved 7-year multi-air tariff after the privatisation of the KESC in 2005, which could not be reviewed till 2012, but the KESC gave application of review in 2009. The KESC administration collected 1.5 billion rupees from the consumers in Karachi during last one year. The KESC administration violated the decisions and sacked the employees. Though Nepra Chairman has power to take suo moto notice against this action of the KESC yet the action was not taken on the recommendation of the federal government. -Online
UK probes assets of Husain Nawaz LONDON: The British tax authorities have decided to investigate the fast growing assets of Hussain Nawaz, son of PML-N head, Nawaz Sharif. Sources have informed that the British tax authorities would also be investigating as to how the credit ratings of these companies had improved despite their continuous reported loses. Hussain Nawaz is reported to be holding many real estate companies in London, out of which audit reports of such companies as Flagship Investments Ltd worth UKL 900,000, Q-Holding Ltd, Queen Pet Ltd, submitted to British tax authorities, have prompted the proposed investigations. Sources have informed that declared assets of Hussain Nawaz in London also include Gloucester Palace London and Dew Street London Estate worth UKL 1.5 million; while estates located in Park Lane and Gain Street, London amount to
more than UKL 3 million. Sources have disclosed that despite possessing million pounds' worth of assets in London, the tax returns submitted to British tax authorities by Hussain Nawaz have (yet) indicated losses. The investigations by British tax authorities would also investigate the authenticity of submitted assets, earning sources of these assets, including the possibility of transferring of these massive amounts through the Hundi system ('private transfers') to various countries. A chartered public accountant (CPA) has informed that money laundering, submitting false tax returns, and tax evasions were serious crimes in Britain; and if the private companies failed to satisfy the tax authorities, it would be a major crime carrying such heavy penalties like confiscation of property and accounts, besides 15 to 20 years of imprisonment.Online
Lawmakers againt US diplomat ISLAMABAD: Members belonging to opposition parties in the National Assembly and the Senate have drawn up plans to strongly raise the issue of killing of two Pakistanis in Lahore by American national Raymond Davis when the two houses resume their sitting today. Sources privy to the strategies of PML-N, PML-Q, JUI (F), MQM and Jamaat-e-Islami said the parties would take up the serious issue and the pressure of the US Embassy for the immediate release of Raymond Davis and press for a full debate by suspending other business in the two houses. While the PML-N Government in Punjab, where the incident took place has refused to give in to the pressure and the Foreign Office categorically rejecting the demand for the handing over of the American national, the legislatures are worried that the government would succumb to US pressure under one pretext or the other. See # 2, Page 11
MULTAN: Prime Minister Syed Yousuf Raza Gilani talking to a delegation of Multan Chamber of Commerce and Industry at Circuit House.-APP
Davos discussions conclude
Top leaders see need for inclusive growth DAVOS: Business leaders say the poor need to benefit more from economic growth or the world will experience more of the unrest seen recently in Tunisia and Egypt. Executives at the closing panel of the annual World Economic Forum meeting in Davos, Switzerland, say the global recovery appears stable but many of those at the bottom aren't reaping the benefits. Chanda Kochhar, chief executive of India's ICICI bank, told the panel Sunday
business chief and politicians have to ensure basic needs such as schools, roads and housing for everyone are met. China Ocean Shipping's CEO Wei Jiafu says the increases in foodprice occurring in much of the developing world will eventually force up the cost of other commodities and lead to politically risky inflation. World leaders concluded on Sunday the five-day annual meeting of the 41st World Economic Forum (WEF) in Swiss Alpine ski resort Davos.
Davos held the last four discussions or debates on Sunday on policy priorities, global risks and emerging issues for 2011 as well as the spirit of Davos as a conclusion for this year's WEF Annual Meeting. During the past five days, over 2,500 world leaders from industry, government, academia, civil society and the media had discussions on a wide range of topics mainly including world economic recovery, global risks, Doha Round of global trade talks and climate change, etc. See # 1, Page 11
MPs body to go over JC decisions ISLAMABAD: The meeting of the Parliamentary Judicial Commission formed for appointment of judges would be held in Parliament House, tomorrow, Tuesday. The meeting, chaired by leader of the House in the Senate, Nayyar Bukhari would be reviewing the decisions taken by Judicial Commission as presided over by CJP, Iftikhar Muhammad Chaudhry. The meeting would also be reviewing recommendations as forwarded by Supreme Court, and also decide about their final approval. -Online
Iran names new FM TEHRAN: Iranian Majlis (Parliament) on Sunday approved Ali-Akbar Salehi as new foreign minister, said a media report. The Majlis gave the vote of confidence to Salehi after the exforeign minister Manouchehr Mottaki was dismissed in December by President Mahmoud Ahmadinejad. Out of 241 MPs who cast their votes, 146 voted in favor, 60 against, and 35 abstained. On January 23, Ahmadinejad nominated Salehi as Iran's foreign minister by recommending him to the Majlis. Salehi is currently the Head of Atomic Energy Organization of Iran (AEOI) and also Iran's vice president. -NNI
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