International Karachi, Monday, May 2, 2011, Jumadi-ul-Awwal 28, Price Rs12 Pages 12
Labour Day observed with renewed pledges
Rich in Pak pay next-to-nothing in taxes: FBR
See Page 12
Gaddafi survives strikes but son killed
See Page 12
SArabia pumps more crude as demand soars
See Page 12
See on Page 2 Economic Indicators Forex Reserves (23-Apr-11) Inflation CPI% (Jul 10-Mar 11) Exports (Jul 10-Mar 11) Imports (Jul 10 - Mar 11) Trade Balance (Jul 10 - Mar 11) Current A/C (Jul 10- Mar 11) Remittances (Jul 10 - Mar 11) Foreign Invest (Jul 10-Mar 11) Revenue (Jul 10 Mar 11) Foreign Debt (Dec 10) Domestic Debt (Dec 10) Repatriated Profit (Jul- Mar 11) LSM Growth (Jul 10- Feb 11)
GDP Growth FY10E Per Capita Income FY10 Population
$17.18bn 14.20% $17.80bn $29.02bn $(11.22)bn $99mn $8.02bn $1.32bn Rs 1012bn $58.39bn Rs 5497.4bn $491mn 0.98% 4.10% $1,051 175.90mn
Portfolio Investment
PML-Q delegation meets Zardari; Gilani says alliances in nat’l interest
PPP, 'Q' agree on power sharing Dy prime ministership, 4 ministers, 6 ministers of state & 3 advisors to PM; Saraiki & Hazara provinces, alliance in election, Senate seats adjustment, reforms in Fata agreed Special Correspondent/ Agencies
SCRA(U.S $ in million)
225.58 49.49 -0.33 2771
Yearly(Jul, 2010 up to 29-Apr-2011) Monthly(Apr, 2011 up to 29-Apr-2011) Daily (29-Apr-2011) Total Portfolio Invest (23-Apr-2011)
NCCPL (U.S $ in million)
FIPI (29-Apr-2011) Local Companies (29-Apr-2011) Banks / DFI (29-Apr-2011) Mutual Funds (29-Apr-2011) NBFC (29-Apr-2011) Local Investors (29-Apr-2011) Other Organization (29-Apr-2011)
2.69 -2.85 1.84 0.52 0.19 -2.70 0.31
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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)
13.25% 13.62% 13.87% 14.00% 13.22% 13.38% 13.67% 14.08% 14.19% 13.98% 14.03% 14.10% 14.43% 14.68% 14.90%
20-Apr-2011 20-Apr-2011 20-Apr-2011 26-Mar-2011 30-Apr-2011 30-Apr-2011 30-Apr-2011 30-Apr-2011 30-Apr-2011 30-Apr-2011 30-Apr-2011 30-Apr-2011 30-Apr-2011 30-Apr-2011 30-Apr-2011
Commodities Crude Oil (brent)$/bbl 125.89 Crude Oil (WTI)$/bbl 113.93 Cotton $/lb 158.02 Gold $/ozs 1556.40 Silver $/ozs 48.60 Malaysian Palm $ 1,105 GOLD (NCEL) PKR 41,758 KHI Cotton 40Kg PKR 10,181 Open Mkt Currency Rates Symbols Buy (Rs) Sell (Rs)
Australian $ 91.90 Canadian $ 88.60 Danish Krone 16.10 Euro 124.20 Hong Kong $ 10.80 Japanese Yen 1.027 Saudi Riyal 22.40 Singapore $ 68.30 Swedish Korona 13.40 Swiss Franc 94.20 U.A.E Dirham 22.90 UK Pound 140.20 US $ 84.45
92.90 89.60 16.50 125.60 11.10 1.053 22.60 69.30 13.70 95.30 23.10 141.60 84.75
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Australian $ 92.62 Canadian $ 89.41 Danish Krone 16.18 Euro 125.04 Hong Kong $ 10.87 Japanese Yen 1.040 Saudi Riyal 22.52 Singapore $ 68.94 Swedish Korona 13.98 Swiss Franc 97.55 U.A.E Dirham 23.05 UK Pound 141.06 US $ 84.58 Weather Forecast Cities
Islamabad Karachi Lahore Faisalabad Quetta Rawalpindi
92.84 89.62 16.77 125.33 10.90 1.043 22.57 69.10 14.02 97.78 23.99 141.40 84.76
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ISLAMABAD: Pakistan Peoples Party (PPP) and Pakistan Muslim LeagueQuaid (PML-Q) Sunday night signed a deal for power sharing not only in the present set up but in the next elections both parties agreed to go along. Pakistan Muslim League-Q delegation under the leadership of Chaudhry Shujat Hussain met President Asif Ali Zardari at the Presidency on Sunday, while Prime Minister Syed Yousuf Raza Gilani will also attend the meeting. PML-Q delegation also consists of Chaudhry Pervaiz Elahi and Waseem Sajjad, whereas Raja Pervez Ashraf and Amin Fahim from PPP side were present too. According to the power sharing formula, Chaudhry Pervaiz Elahi would be made Deputy Prime Minister, whereas PMLQ will also be given four ministries, six portfolios of state ministers and three advisors to prime minister. The Q-league has demanded the portfolio of Foreign Affairs for Faisal Saleh Hayat,
MQM offered 3 Fed ministries Final decision to be announced today LAHORE: Prime Minister Syed Yousuf Raza Gilani on Sunday phoned Muttahida Qaumi Movement chief Altaf Hussain and invited his faction, again, to join the federal cabinet, media reported. In his telephonic conversation, PM Gilani also expressed his condolence to Altaf on the murder of Liaquat Qureshi, an Privatization Ministry for Jam Yousuf, Water and Power Ministry for Ameer Muqam and State and Borders Affairs Ministry for Ghaus Muhammad, while Qasim Shah, Raja Bisharat and Mustafa Nawaz Khokhar will be made advisors. According to the Presidency Spokesman, Farhatullah Babar both parties have agreed upon 10 points. According to the news PPP has offered five seats of Senate to PML-Q in the Senate elections -- two seats
Spreads in Mar rises 28bps YoY Ahmed Siddique KARACHI: The State Bank of Pakistan (SBP) released lending and deposit rates of the banking system for the month of March 2011. According to SBP, banking spreads went up 28bps to 7.58 per cent compared with 7.30 per cent in March 2010. The main reason of increase in spread remains higher lending rate which increased 15bps on yearly basis to 13.55 per cent from 13.40 per cent in
same period last year. On the other hand, deposit cost declined 13bps YoY to 5.97 per cent in March 2011 against 6.10 per cent in March 2010, thus reflecting ample liquidity in the market. Similarly, spread on monthon-month basis hiked 7 bps where they were 7.51 per cent in February 2011. Cost of deposits decreased 7bps at 5.97 per cent while they were 6.04 per cent in previous month. However, lending cost remained unchanged at 13.55 per cent.
KSE New MD speaks to TFD
Nadeem vows to win back investors Shabbir Kazmi KARACHI: "I am nobody and the role of Managing Director of the Karachi Stock Exchange does not bestow any magical power. Having said that the confidence-crisis has to be tackled through joint efforts of the three exchanges namely, Karachi, Lahore, and Islamabad stock exchanges," this was expressed by Nadeem Naqvi, the incumbent Managing Director of Pakistan's largest bourse. He said that in his discussions with the brokers' fraternity his prime message was to put our own houses in order, in terms of governance, practices and ethics so that we can stand up and tell the global investors that we have the will and the capacity to self regulate. He was of the view that in the foreseeable future the exchanges should primary focus on managing systemic risks and having the ability to preempt market-wide-crises before they happen. The exchanges should have the capacity to attract new capital issues and help in broadening investors' base through new
products (including debt instruments) trading and large scale awareness generation/ marketing campaigns to potential investors, especially retail segment. Dilating upon the role of foreign investors Nadeem said, "Over the last ten years the composition of investors in Pakistan market has changed but this is not unique as it is part of the global phenomenon. During this period interest of foreign funds in emerging markets has grown at an astronomical rate. The reason is simple; the developed economies were growing at much slower rate than the developing economies." When asked to comment for how long foreign investors will See # 11 Page 11
MQM leader gunned down in Karachi on Friday. According to sources, the MQM leader positively responded the government offer, saying that "in order to bring a political stability in the country, it's our desire that MQM members join the federal cabinet". See # 9 Page 11 from Balochistan and one each from Punjab, Islamabad and Sindh. Both parties agreed to keep the alliance during the next elections, whereas reforms would be introduced in Fata and Election Commission. Media also reported that both parties also consented on the formation of new provinces in the country; according to the formula Saraiki Province would be formed in the southern Punjab whereas Hazara Province would also be formed
ZAB case hearing starts today ISLAMABAD: The Apex Court of Pakistan will hold hearing of presidential reference regarding Zulfikar Ali Bhutto case today. Chief Justice, Justice Iftikhar Muhammad Chaudhry, leading the 11-member bench consisting of Justice Javed Iqbal, Mian Shakirullah Jan, Justice Nasirul Mulk, Justice Muhammad Sair Ali, Justice Mehmood Akhtar Shahid Siddiqui, Justice Jawad S Khwaja, Justice Anwar Azhar Jamali, Justice Khilji Arif Hussain, Justice Sarmad Jamal Osmani, and Justice Ghulam Rabbani would hear the reference case. See # 10 Page 11
Shahbaz phones Sharif LAHORE: Punjab Chief Minister Shahbaz Sharif has consulted and taken guideline from PML-N Quaid Nawaz Sharif through telephone after the situation occurred after PML-Q-PPP alliance. According to sources, Nawaz Sharif advised Shahbaz to intensify consultation with PML-N leaders and increase series of meetings with members of Unification Bloc The CM invited Unification Bloc leaders including Atta Manika and Dr Tahir Ali for meeting. PML-N leaders including Chaudhry Nisar, Ishaq Dar and Khwaja Asif were being informed about consultation process with Shahbaz Sharif. The sources disclosed that the Punjab Chief Minister received some information that the plan was being made to destabilize the Punjab government after alliance in the federal government. After this information, Shahbaz Sharif has intensified the consultation process and increased meetings with his close friends and administration was being advised in this regard to include PML-N and Unification Bloc members' works in its priorities.-Agencies
in the Khyber-Pakhtunkhwa. Media also quoted that that is possibility of change of Punjab Governor Latif Khosa after alliance between PPP and PML-Q. According to sources, former Law Minister Babar Awan can become Governor of Punjab.
PPP had offered Punjab governorship to the PML-Q but Chaudhry Pervaiz Elahi was interesting to become deputy prime minister, so the next governor of Punjab would be join candidate of the PPP and PMLQ. The sources added that the
Makori East field to bring 5kbpd oil Aamir Abidi KARACHI: Tal block, operated by Hungarian exploration company MOL, has bring a series of successful discoveries in recent and now Makori East to bring additional 5,000bpd of oil. As per the latest drilling update on PPIS (Pakistan Petroleum Information Service), Domail-1 and Makori East-01 has entered into testing phase, which have heightened the chances of augmented hydrocarbon reserves from the respective fields. According to the industry channels, after successful discovery of 3,200bpd (barrels per day) in Lockhart formation, testing phase have entered into two other formations. The sources suggest an augmented discovery size of approx 2,500bpd from each formation taking cumulative
discovery size from Makori East-01 to approx 8000bpd. According to the research analyst of Topline Securities, positive development will primarily bode well for Pakistan Oilfields Ltd (POL) which has a working interest 21 per cent in Makori East-01. As per his estimates, incremental annualise earning impact from augmented Makori East-01 discovery (5,000bpd) would be Rs5.5 per share. Furthermore, the discovery would also enhance Oil and Gas Company Ltd (OGDC) and Pakistan Petroleum Ltd (PPL) earnings by Rs0.3 and Rs1.4 per share, respectively. Based on Domail-2 discovery size, we expect a medium size gas discovery of 15-20mmfcd (million cubic feet per day) from Domail-01. However, the testing phase could e prolong by 2-3months.
Karachi Stock Market
Offshorers pull $11.3mn last wk Ghulam Raza Rajani KARACHI: Flight of foreign portfolio investment was seen last week with a net withdrawal of $11.3 million by offshore investors as per the National Clearing Company of Pakistan Limited (NCCPL) data. However, excluding transaction of Summit Bank Limited in off-market worth $16 million, offshore net invested $5 million on net basis. On the other hand, KSE 100Index ended higher on the rumours that offshore investors are buying shares of OGDCL. In addition to that improved economic situation and better corporate results recalled the bulls to the Karachi Stock Exchange last week. KSE 100-Index hiked 0.9 per cent or 103.17 points at
12,057.54. Weekly average volume witnessed an increase of 66.1 per cent to 104.52 million shares against 62.92 million shares traded week before last. Furthermore, local individuals and mutual funds remained on the selling side with shares worth $6.32 million and $0.54 million respectively. On the other hand, biggest weekly buying was witnessed from local companies which invested $95.53 million of shares in the local bourse against the selling of $82.45 million, thus turning the net buying worth of $13.09 million. Moreover, banks, NBFC and other organisations also joined trend as they net invested $3.45 million, $1.36 million and $0.09 million respectively.
objective of appointment of Babar Awan as Punjab Governor to give stiff time to the PML-N. The sources confirmed that the PML-Q leadership expressed its inability to take Punjab governorship. See # 8 Page 11
Pak-USA defence talk begins today ISLAMABAD/ WASHINGTON: The 6th meeting of Pakistan-US Defence Consultation Group is going to start in Washington from today (Monday) while PakistanAfghanistan and US trilateral talks would be held in Islamabad on May 3 (tomorrow). Pakistan, sources informed Online, would take up the issue with regard to availability of drone technology to Pakistan. The group would also review the implementation on decisions which were made in earlier meetings. The needs of country's armed forces in war against terrorism would also be included in the meeting agenda. The overhauling of Pakistan's Jet fighters in Turkey would also be discussed in the meeting. Secretary Defense Lt Gen (Retd) Athar Ali would lead the Pakistani delegation in talks. On the other hand, Pakistan Ambassador in US, Hussain Haqqani has said that PakistanAfghanistan and US trilateral talks would be held in Islamabad on May 3. Talking to CNN, Hussain Haqqani dismissed US media assertions on Islamabad advising Kabul against co-operation with the United States. He said that Pakistan, Afghanistan, and US were working together in coordination and the three countries would be holding talks in Islamabad on May 3 for a resolution of the decade old Afghan war. "Very interestingly, only last week Ambassador Grossman (US special envoy for the region) and Pakistan's foreign secretary (Salman Bashir) agreed that they are going to try and create a trilateral mechanism. They are having a meeting in Islamabad on the 3rd of May," Haqqani told CNN in an appearance in the channels' program Situation Room. -Agencies
2 Monday, May 2, 2011
Business leaders hail Pak-India trade talks Staff Reporter KARACHI: The businessmen have welcomed the trade talks between Pakistan and India and termed them as new milestone to have better trade relations of the two neighboring countries. President, Pakistan-India Chamber of Commerce and Industry and Patron In-Chief, Korangi Association of Trade and Industry (KATI), S M Muneer, Chairman, KATI, Syed Johar Ali Qandhari and former Chairman, Mian Zahid Husain while hailing
the trade talks between the neighboring countries hoped that this would liberate the trade of the two countries. They welcomed the announcement of opening up border trade particularly from Khokrapar and Monabao s as well as at the Wagah Border. The business leaders said that government should consider the import of cheap electricity in order to overcome power crisis and minimize the load shedding in the country. They furrier welcomed the import of POL products from India. S M Muneer while commenting
on the visa problem being faced by the Pakistani business community said that a high powered delegation would also visit Pakistan very soon to address this problem. He said that Indian businessmen usually get visa of Pakistan without any problem but Pakistani businessmen face problem in this regard. He further said that liberalizing import list except a few items by Pakistan government would provide Pakistani manufacturers to get cheap raw materials. Muneer has also praised the efforts of Commerce Secretary, Zafar Mahmood during the talks.
Indo-Pak officials to sign MoU for promoting trade TFD Report KARACHI: Zafar Mahmood, Secretary Commerce, chaired a meeting along with Tariq Iqbal Puri, Chief Executive at Trade Development Authority of Pakistan Headquarters in Karachi in which Secretary Commerce briefed and discussed with the officers the modalities of speedy and effective implementation of the decisions taken in PakIndia talks held on April 30 in Islamabad. It was decided that TDAP to form sector spe-
cific committees which would be led by the private sector for identification of barriers in the Pak -India bilateral trade. The consultation process will be undertaken with all stakeholders for taking forward the agenda of Joint Statement to produce and prepare set of strategies for the next round of talks. TDAP will undertake seminars/workshops to create awareness and to identify opportunities in the bilateral trade with the emphasis on sensitizing of Indian's market and regulatory requirements. TDAP would also coor-
dinate with Director General of Trade Organization and FPCCI in formation of Joint Chambers of Commerce for setting out TORs and actions to be taken for facilitating the business community. TDAP in collaboration with academia and sectors specialists will develop position paper on different aspects of Trade and Investment between the two countries. MOU will be entered into between TDAP counterpart ITPO to institutionalize joint collaboration for promotion of trade.
Labour Day observed amid grievances Staff Correspondent LAHORE: The International Labour Day in Pakistan was observed amidst serious grievances of the labourers against the new Industrial Relations Act which, they believe, has put them in a position worse that that of
Chicago of 1886. Talking about the current state of affairs of the working class especially the labourers in the country, Pakistan Working Women Organization President Rubina Jamil, Muttahida Labour Federation Chairman Muhammad Yaqoob and Pakistan Workers Federation
General Secretary Khurshid Ahmed said that due to energy crises, more than 6,000 industries had been closed in the past one year alone and more than 400,000 labourers had become unemployed. They said 1.6 million labourers were entering the labour market every year and the
current rate of employment was shamefully low. They said labourers were being rendered unemployed by the factories in the name of downsizing, right sizing and golden hand shake, and all these things were happening due to fault of the present rulers and capitalists, adding that anti-
labour policies were being adopted on the instigation of imperialism. They said loans from the IMF and World Bank were making the next generations indebted and on the other hand national assets were being sold at a low price. They said that through
privatization in the country, hundreds of thousands of the labourers had become unemployed and they were being ousted from the public sector/institution. In the country, prices had increased 400 times due to which 11 persons, including women, were committing suicide daily.
Inbox, IBM's Secure Data Storage KARACHI: IBM Pakistan and Inbox Business Technologies jointly introduced IBM Storwize RAS, which will help businesses manage their applications and information explosions, effectively and thus, increase their storage utilization, storage administrator productivity, application performance and availability. The main purpose of this event was to showcase how organizations can secure their data with the latest technology, as with the advancement in operations and globalization, organizations need to be proactive in being prepared to deal with the data security challenges effectively.
The event highlighted the fact that the growing complexity of IT environments; as a result of diverse business applications and devices; is forcing midsized businesses to pursue more and more virtualization technologies, so as to attain efficiency in their business operations. Further, the event highlighted out that challenges arise when companies introduce virtualization without changing their business processes and architectures. On the occasion, Migally, Data Protection Sales LeaderSystem Storage (MEA), IBM, spoke on the issue of 'Smart Data Protection', thereby providing some valuable insights. -PR
Sindh mourns Liaquat Quraishi's murder KARACHI: Sindh towns and cities observing a peaceful mourning day on the murder of Muttahida Qaumi Movement (MQM)'s former member Sindh Assembly, Advocate Liaquat Quraishi throughput the province. Thirteen vehicles and passenger buses were torched in different parts of the city. Two people were wounded by firing in Malir when unknown persons opened fire on a transport bus. Rangers have arrested two culprits from Orangi Town and Liaquatabad area. Vehicles were torched in Orangi town, Burns Road, Lucky Star and Moosa Colony areas. MQM's Rabita Committee condemned the burning of vehicles and told its party workers and activists to maintain peace and order in their areas and also keep an eye on culprits. The MQM committee advised its workers to alert law enforcing agencies if any culprits were seen torching vehicles and creating violence in the city. Hyderabad, Nawabshah, Mirpurkhas and other cities of the province are giving a deserted look, as almost all the shopping malls, trading centers remained shut, black banners displaying hurt sentiments of the citizens and black flags at most of the places in the towns and cities gave a grieved look, while the citizens from all segments of the society wore black bands expressing their deep shock and sympathy with MQM leaders and workers. Traffic in Mirpurkhas and Nawabshah also remained thin on the day of mourning. In Tharparkar different areas also observed mourning day. Mehar town also observed the day with solemnity on MQM appeal. Two persons were arrested in Umerkot for allegedly for getting the shops closed.
‘Govt for autonomous medical colleges’ LAHORE: Secretary Health Punjab Mohammad Jehanzeb Khan has said that government was in favour of autonomy of medical colleges and teaching hospitals but this autonomy should be service oriented and their should be a strong system of accountability. He was addressing a high level meeting of the Principals of Medical Colleges and Medical Superintendents of teaching hospitals. Besides, Special Secretary Health, Waseem Mukhtar, Addl. Secretary (Estt.) Muhammad Dawood Khan, Addl. Secretary (Development) Usman Muazzam, Addl. Secretary (Admn) Khursheed Zaidi, Addl. Secretary (Tech.) Dr. Mushtaq Ahmad Sulehria, Director General Health Dr. Muhammad Aslam Ch. DS (Admn) Saleha Saeed, VC (KEMU), Principals of Medical Colleges and MSs of all teaching hospitals attended the meeting. -Online
KARACHI: M A Jinnah Road wears a deserted look on the mourning day observed by MQM on the death of ex-MPA Liaquat Qureshi. -Online
Govt committed to resolve workers’ problems: Firdous ISLAMABAD: Federal Minister for Information and Broadcasting Dr Firdous Ashaq Awan Sunday said that the Pakistan Peoples Party (PPP) government is committed to resolve the workers problems and striving hard to protect their due rights. In a media interview on the occasion of May Day, she said that the government is trying to take all possible steps for the welfare of the workers. The Minister said that the present government has enacted workers-friendly laws as per the vision of Shaheed Zulfikar Ali Bhutto and Shaheed Mohtarma Benazir Bhutto, which have brought
largest socio-economic development in the country. She said, PPP is a proworkers, pro-farmers party and the government is striving hard to meet the international labour standards to promote women and men at equal basis so that they could earn decent wages. Dr. Firdous said, poor people, the workers and small farmers are real power and strength of PPP. "We want to take them on board," she said adding, "We want to provide better job opportunities for workers so that they could earn better livelihood." She said that the PPP derives its strength from the labour class that is why its all
successive governments have fought for rights to workers community. She said the present government has introduced a new labour policy to protect the rights of the working class. Dr. Firdous said, Shaheed Zulfiqar Ali Bhutto gave the voice to the workers and struggled for the protection of their rights. "Today, when the PPP government is in power, following the philosophy of Zulfikar Ali Bhutto we introduced Benazir Employees Stock Option Scheme," she said adding, "Labour unions were restored and we owned the rights of the workers."-NNI
‘Power crisis hitting leather industry hard’ Staff Reporter KARACHI: The Chairman, Pakistan Tanners' Association, Khurshid Alam once again invited immediate attention through a press statement to the Electricity load shedding specially in Punjab, which is now at deteriorated and extended up to 18 hours daily, resultantly the Leather Industry of Pakistan is now in deep crisis facing great hardships in the manufacturing/execution of export orders and unable to fulfill the commitment made by PTA's members in writing with the valued foreign buyers/customers. Khurshid Alam, Chairman, Pakistan Tanners Association also informed to the Print and Electronic Media in his press
briefing that in the wake of heavy daily load shedding PTA's members are suffering financially severely in the cancellation of export orders and loosing precious foreign exchange, which is desperately required by our beloved country for strengthening the country's economy. This alarming situation has repeatedly been brought into the notice through Press and special PTA's letters addressed to the President of Pakistan, Prime Minister of Pakistan, Commerce Minister & Ministries concerned for taking serious note on the power failure, but nothing has come out as yet, besides the situation being deteriorating to worst day by day specially for Leather Industry of Pakistan particularly in Punjab.
Forgery is a plague affecting Pak: Hales
Masses resent increase in POL prices ISLAMABAD: Masses have strongly protested against the current increase in petroleum products in various cities of the country. According to media reports, people in various cities staged protests and burnt tyres against the increase in petroleum prices from OGRA. The residents of Karachi have refused to accept this increase in the petrol prices, after the announcement of increase in petrol prices the owners of various petrol pumps have suspended the supply of diesel and petrol. Masses are facing a lot of difficulties due to this. The masses are of the view that whenever there is an increase in petrol prices it is done in rupees but when the government has to decrease the petrol prices it is done in paisas, which is not at all justice. Masses of Lahore, Faisalabad, Multan, Dera Ghazi Khan, Jhang, Bahawalpur, Quetta, Peshawar and in various other cities of the country have completely rejected the current increase in petroleum prices by the government. The protesting masses demanded from the government that it should change its policies and take back the decision of this current increase in the petroleum products. The leader of Muslim league (N) Mian Nawaz Sharif said that the increase in petroleum products would increase inflation in the country and the difficulties of poor masses would also increase. Mutahida Qaumi Movement (MQM) is of the view that the poor and middle class of our country would be directly affected by this increase in the petroleum products. -Online
quaint cottage industry, operating in backyards or run down factories; they are in fact a billion rupee sophisticated and wellorganised criminal enterprises. A perception changing thought brought forward was how, contrary to popular belief, the counterfeit industry harms consumers, businesses and Governments alike. Hales, The while addressing the issue ISLAMABAD: Pakistan Economy Watch said. (PEW) on Sunday said Pakistan Business Council (PBC) should have representation of medium and small businesses to allay fears of the business community. PBC comprises super rich business tycoons enjoying influence in political circles that have raised concerns among the already distressed business community, it said. Many business leaders fear that the influence of country's leading busith KARACHI: group photo taken on the occasion of “12 Foundation Day” of the nessmen can result in a Pediatric Oncology Unit of NICH & Child Aid Association. compromise over their Prominent are Prof. Nizam-ul-Hassan (CAA), Ateeq ur Rehman (KCCI), Dr A interests among those who Bari Khan (Indus Hospital), Prof. Jamal Raza (NICH), Dr Khalid Zafar Hashmi matter, said Dr. Murtaza (SIUT), Dr Salman Burney (CAA), Tariq Shafi (CAA), Muhammed Aslam Mughal, President PEW. (CAA), Haji Masood Parekh, Liaquat & Others. Online TFD Report
KARACHI: Counterfeit is a plague affecting the country and in line with the issue severing the country's progress, Chief Executive Officer and Managing Director of Pakistan Tobacco Company Limited Nicholas Stewart Hales said while speaking on 'The Role of IPR in the growth of Pakistan' at the IPO Conference in local
hotel Karachi. Hales presented a context of the real threat of harm that brands in Pakistan are under from the counterfeit industry. Counterfeiters are the illegal manufacturers who copy products and pass them off as genuine products, they are also the people who distribute and sell the products. He stressed that while most people think of the counterfeit industry as a somewhat
‘PBC should also represent small businesses’
3
Monday, May 2, 2011
Asian currencies
Greenback weekly outlook
US dollar under pressure, little relief ahead US dollar index at 3-year low, worst month since Sept Swiss franc at record high vs USD, SNB comments help Month-end flows seen tilted toward dollar selling NEW YORK: The US dollar hit a three-year low against a basket of currencies on Friday and is expected to decline for the a sixth straight week in the coming sessions on expectations the Federal Reserve will keep interest rates low while the European Central bank raises them. Higher interest rates in Europe have undermined support for the dollar, boosting the euro by 11 per cent so far this year. The US dollar index hit a three-year low of 72.834 on Friday and has now fallen for five straight months after tallying a 3.8 per cent April decline. "It's pretty close to a oneway bet (on the dollar), but in
foreign exchange markets, anything can happen," said Chris Turner, head of foreign exchange strategy at ING Commercial Banking in London. "US monetary policy is reflationary policy which is great news for the commodity currencies and frames the weak dollar." The euro was on track to rally 4.6 per cent against the dollar in April for its best month since September. The dollar fell 2.5 per cent this month against the yen, its worst month since December. The euro was buoyed by stronger-than-expected eurozone inflation data that increased the chance of another ECB rate rise, sooner rather than later.
Speculators increase bets against USD: CFTC NEW YORK: Currency speculators boosted bets against the US dollar for the first week in five, according to data from the Commodity Futures Trading Commission released on Friday. The value of the dollar's net short position rose to $27.75 billion in the week ended April 26, the highest level in a month, from net shorts of $24.36 billion a week earlier, according to CFTC and Reuters calculations. Euro long positions rose to 68,279 contracts in the latest week, the highest since December 2007, from 62,195 contracts the previous week. Expectations the Federal Reserve will keep interest rates low while the European Central Bank raises them have pressured the dollar in recent months. The US dollar hit a three-year low against a basket of currencies on Friday and has now fallen for five straight months after tallying a 3.8 per cent April decline. The euro was on track to rally 4.6 per cent against the dollar in April for its best month since September. Speculators trimmed bets against the yen, while they also pared positions in favor of further gains in commodity currencies such as the Canadian and Australian dollars. To be short a currency is to bet it will decrease in value, while being long a currency is a bet its value will rise.-Reuters
Corn, soy snap back after fund sell-off CHICAGO: US corn futures rose by 4 per cent on Friday for the best gains in a month as funds came charging back one day after a massive sell-off took prices to their lowest level in nearly a month. Wheat and soybean futures also gained in a recovery after each market was pounded Thursday as a resumption in corn planting in western stretches of the Corn Belt alleviated concerns about supply, traders said. But there remains a lot of uncertainty about crop weather, adding to the volatility in corn, wheat and soybean markets. CBOT July corn was up 271/4 cents at $7.56-1/2 per bushel, July wheat was up 233/4 cents at $8.01-1/4, and July soy up 40-1/2 cents at $13.94. Wheat was down 3.8 per cent for the week and was up 0.8 per cent for April. Corn was up 2.3 per cent for the week and up 8.8 per cent for the month. Soybeans were up 0.9 per cent for the week and down 1.2 per cent for the month. -Reuters
The euro last traded at $1.4816, little changed on the day and still near its highest since early December 2009. But the euro ran into some selling and could struggle ahead of a reported options barrier at $1.4900. Resistance was expected around $1.4905, a peak from Dec. 7 2009, ahead of a substantial barrier at $1.5000. Beyond $1.5000, the key target was the 2009 high of $1.5145. Technical factors and overextended speculative positioning suggest the dollar's decline may slow this week, according to Vassili Serebriakov, currency strategist at Wells Fargo in New York. "However, with the Fed sending a strong dovish message, we see few significant triggers for an immediate dollar turnaround," he said. One-month euro/dollar risk reversals last traded at -1.3 on Friday, according to Reuters data, with a bias toward euro puts and dollar calls, suggesting more investors are betting the euro will fall than will rise. But the same measure traded at -1.48 on Tuesday, which indicates relatively less bearishness, the day before Federal Reserve Chairman Ben Bernanke hosted his first-ever post-policy decision news conference. Still, euro long positions rose to 68,279 contracts in the latest week, the highest since December, 2007, according to
Arabica ends at 34-yr Copper ends down for peak, cocoa climbs NEW YORK: Arabica coffee futures trading on ICE reversed up to close at the highest level in 34 years, while US cocoa ended at a six-week high on Friday, hitting technical buy signals in its best monthly performance in 19 months. Raw sugar settled at a 6-1/2month low on supply pressure and as it continued its downtrend on the last trading day of the month. London-based Liffe soft commodity markets are closed for British holidays on Friday and Monday, and will reopen on Tuesday. ICE Futures US will delay the start of electronic trading for coffee, cocoa and sugar until 1130 GMT on Monday because of those holidays, it said in a notice. US cocoa continued higher, following a technical breakout and options-related dealings earlier this week that forced many holding short positions to take cover. Key July cocoa futures rose $60, or 1.8 per cent, to close at $3,340 per tonne, the highest settlement for the second position since March 14. Arabica coffee futures reversed higher in thin dealings with a lift from investor buying and concern about tight washed arabica supplies, while origin
sellers sat on the sidelines, allowing the market to climb easily. July arabica coffee futures inched up 0.65 cent, or 0.2 per cent, to $2.9985 per lb, the highest settlement for the second position since 1977. Arabica gained 13.5 per cent in April, making it the thirdbest-performing commodity this month, next to US and spot silver. US cocoa was the fourthbest performer with a 13.1 per cent gain and raw sugar was second from bottom at a 17.9 per cent drop. Cotton fared the worst, down 21.1 per cent. Raw sugar continued to move lower as the market remained focused on the May delivery, which was expected to be heavy, as the spot contract expires on Friday. Open interest for May dropped to 19,306 lots by April 28, down 11,008 lots from the previous day. The May raw sugar contract fell 0.54 cent, or 2.3 per cent, to finish at 23.38 cents a lb. July eased 0.26 cent, or 1.2 per cent, to end at 22.25 cents, the weakest settlement for the second position since Oct. 6. The second position finished the month down 11 per cent, marking the third straight month of losses. -Reuters
US cotton ends Apr strong with most commodities NEW YORK: US cotton futures rallied to Friday's daily limit, chalking up steep gains for the last day in April, along with most other commodities, as many investors rotated into hard assets believing the US Federal Reserve would keep money cheap for awhile. Most-active July cotton on ICE Futures US closed with 6.0 cent gains, the upside daily limit, at $1.5802, a 3.95 per cent increase. New-crop December cotton rallied 4.35 cents, or 3.44 per cent, to $1.3093 cents a lb. by settlement. May cotton gained 5.96 cents, a
data from the Commodity Futures Trading Commission released on Friday. The US Labor Department will publish its April employment report this week, and analysts at Citigroup said dollar bearishness should persist. "It is hard to be optimistic on the (dollar's) long-term prospects, given the Fed's ability to surprise on the dovish side, the ongoing overhang of US dollar assets among reserve managers and the concerns that have emerged on long-term US fiscal prospects," CitiFX said in a research note. Trading was thinned by the holiday for Britain's royal wedding. The Swiss franc was buoyed by upbeat comments from the Swiss National Bank's chairman and an above-forecast Swiss sentiment survey. The Swiss franc rose to hit a record high of 0.86256 francs per dollar on EBS. Speculators remained net long the Swiss franc to the tune of 17,841 contracts, according to CFTC data. The euro was last down almost 1 per cent at 1.2820 francs. Against the yen, the dollar was down 0.6 per cent at 81.07 yen. The net short yen position dropped by 15,986 contracts to 36,997 from 52,983 the week before, according to CFTC data. Most of the shift was from a decline of 14,858 total short contracts to 51,060 contracts. -Reuters
3.45 per cent rise, to end at $1.7878 per lb. Analysts were puzzled by the sharp gains in May, which expires on May 6 and is in the middle of deliveries. Only 167 delivery notices have been issued to date. Yet, open interest in the May contract still seemed high, with 5,229 lots at the start on Friday, for a contract that has been in delivery period all week. Open interest declined only minimally from 5,350 lots at the end on Wednesday. For the benchmark July contract, the session began with follow-through panic selling, but
brokers noted that the selling eventually ran out of steam. "It took very little volume to establish a 1,000 point range to get July back to the upside," said Mike Stevens, an independent cotton analyst in Mandeville, Louisiana. He added mill fixations picked up considerably under $1.50 per lb. July cotton slipped to a session low at $1.4780. Meanwhile, December futures benefited from the speculative investment that lifted many other commodities, as well as the dry weather forecast in biggest US producing state Texas. -Reuters
2nd straight month
NEW YORK: Copper fell to a six-week low on Friday, ignoring the often supportive influence of a weaker dollar, as technical pressures mounted and US data offered further evidence of slowing economic conditions. Copper's losses diverged from US industrial share prices, which were buoyed by a fivefold increase in quarterly profits from heavy machinery manufacturer Caterpillar Inc. Instead, prices crumbled under a negative price chart picture after the front-month May contract broke down below key trendline support around $4.20 per lb. The most-active July COMEX copper contract slumped to a session low of $4.1580 per lb, its lowest level since March 15, before ending the day at $4.1790, down 8.25 cents from Thursday's close. It was the second consecutive monthly loss for the metal as concerns about rising inflation and further rounds of interest rate hikes in Asia, Europe and Latin America underscored perceptions of lower demand for raw materials at the start of the year. Copper was down overnight after data showed inflation pressures on the rise in the euro-zone, upping the chances of an interest rate increase in June. Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell for the sixth week to their lowest level since mid-February. Despite the steady fall of stocks in surveyed warehouses, Standard Chartered bank warned that China's copper inventories in bonded warehouses were still on the rise in April. Stocks in Shanghai's bonded warehouses were hovering at around 650,000 tonnes, equivalent to roughly four weeks of China's domestic use and higher than the 200,000-tonne average over the past three years. -Reuters
Mostly log sharp gains for month on rates speculation BANKOK: Asian currencies had their biggest monthly advance since December, led by Singapore's dollar and South Korea's won, on speculation regional central banks will boost borrowing costs to tame inflation. China's yuan rose beyond 6.5 per dollar for the first time since 1993 on speculation the central bank will allow quicker gains to tackle the fastest inflation in more than two years. "Prospects of strong economic growth in Asia are attracting fund inflows into the region's stocks and bonds," said Kozo Hasegawa, a currency trader at Sumitomo Mitsui Banking Corp. in Bangkok. "Some countries in the region also seem to be more tolerant with currency gains to stem inflation, accelerating appreciation." Singapore's dollar climbed 2.9 per cent this past month to S$1.2252 against its US counterpart. South Korea's won advanced 2.4 per cent to 1,071.53 and Taiwan's dollar ral-
lied 2.3 per cent to NT$28.762. Asia's developing economies will expand 8.4 per cent this year, outpacing growth of 2.8 per cent in the US, 1.6 per cent in the euro area and 4.7 per cent in Latin America, according to International Monetary Fund forecasts published this past month. Global funds bought $7.9 billion more Indian, South Korean and Taiwanese equities than they sold this month, according to the latest exchange data. Benchmark interest rates in India and Indonesia are at 6.75 per cent and China's is at 6.31 per cent, compared with a maximum 0.25 per cent in Japan and the US. China's yuan rose 0.16 per cent to 6.4912 per dollar, according to China Foreign Exchange Trade System. It touched 6.4892, the strongest level since the country unified official and market exchange rates at the end of 1993, after the Federal Reserve signaled plans to maintain its record monetary stimulus earlier
last week. The yuan rallied 0.24 per cent this past week and 0.88 per cent this past month. Taiwan's dollar posted a second weekly advance as overseas investors bought $1.2 billion more local shares than they sold this past week, according to exchange data. Fed Chairman Ben S. Bernanke retained a pledge this past week to keep interest rates "exceptionally low" for an "extended period." "Foreign inflows were the main factor driving the appreciation this past week, especially after Bernanke made the comments," said Tarsicio Tong, a Taipei-based currency trader at the Union Bank of Taiwan. Elsewhere, Malaysia's ringgit advanced 2.2 per cent this past month to 2.9615 per dollar. Indonesia's rupiah gained 1.6 per cent to 8,566, the Philippine peso climbed 1.4 per cent to 42.803 and Thailand's baht rallied 1.3 per cent 29.88. India's rupee rose 0.8 per cent to 44.215. -Agencies
C$ hits 3-1/2 yr high despite GDP, election TORONTO: Canada's dollar hit a 3-1/2 year high against a broadly weaker greenback on Friday, shrugging off uncertainty over Monday's federal election and data that showed Canada's economy shrank in February. "The fact that the Canadian dollar continues to rally amid a secular decline in the US dollar is of no great surprise," said Jack Spitz, managing director of foreign exchange at National Bank Financial. "The fact that it was able to withstand a miss on the GDP and ahead of any kind of political uncertainties leading into the election has been more of an indicator of the fundamental support for the currency going forward." The Canadian dollar fell early in
the day as data showed Canada's gross domestic product slipped 0.2 per cent in February, reinforcing expectations the central bank will hold interest rates steady until the second half of this year. The currency finished the week at C$0.9464 to the US dollar, or $1.0566, up from Thursday's North American finish of C$0.9510 to the US dollar. It rose as high as C$0.9450 to the US dollar, or $1.0582, on Friday, its strongest level since November 2007. Some analysts say it may now target the modern-day high of C$0.9059, or US$1.1039, reached in late 2007. Strong oil prices and positive US equities lent support, as did second thoughts about the weak February GDP number.
Contributing to volatility during the day was end-of-month positioning and thin volumes due to holidays in Britain and Japan. Looking ahead, currency traders are keeping a close eye on Monday's federal election. The left-leaning New Democrats have closed in on the incumbent Conservatives in the polls just days before the vote. "The only thing I think is going to be market-moving is the election on Monday night. I think the NDP can play a spoiler role in the Canadian dollar rally," said Firas Askari, head of foreign exchange trading at BMO Capital Markets. "If they are the official opposition then I think people will take some Canadian dollar bets off the table." -Reuters
Oil rises to post 8th straight monthly gain Dollar stays under pressure, helps support oil, gold NEW YORK: Oil prices pushed higher on Friday, posting an eighth straight month of gains as the weaker dollar and turmoil in North Africa and the Middle East offset concerns about fuel demand and slowing US economic growth. For US crude, the streak of monthly gains was the longest since the contract was introduced by the New York Mercantile Exchange in 1983, according to Reuters data. Expectation's the US Federal Reserve will maintain a loose monetary policy following this week's meeting has helped to fuel oil's rise, weakening the dollar and pushing investors into riskier assets such as commodities. Refinery problems ahead of the US summer driving season have added further support to US gasoline futures, which 33-month highs on Friday, settling at $3.46 a gallon and just 5 per cent below all time record highs. Brent crude for June rose 87 cents to settle at $125.89 a barrel,
gaining 7.3 per cent for the month, touching a 2011 high of $127.02 on April 11. US crude for June settled up $1.07 at $113.93 a barrel after touching $114.18 earlier, the highest intraday price since prices reached $130 on Sept. 22, 2008. US crude rose 6.8 per cent for April. Both US and Brent crude bounced from early dips after euro-zone data showed the inflation rate rose further above the European Central Bank's target in April, helping push the dollar index against a basket of major currencies to a three-year low. Thursday's report that growth in the US gross domestic product slowed more than expected in the first quarter reinforced the perception that the US central bank will continue with its loose monetary policy. Crude oil trading volumes remained tepid, dampened by a holiday in the United Kingdom. Volatility and uncertainty due to the pan-Arab protests and Libya's conflict have tempered trading.
The US 30-day average volume is down by nearly 130,000 lots compared with the 250-day average, according to Reuters data. Oil's price rise could be tempered if evidence that high prices are eroding demand starts to confirm forecasters' fears that they are slowing consumption and the global economy. US consumer spending rose as households stretched to cover the higher cost for food and gasoline as inflation posted its biggest year-on-year rise in 10 months. Separate reports showed US Midwest factory activity and that while US consumer sentiment rose as a sharp increase in gasoline prices was viewed as being temporary, consumers still anticipated additional price increases. Complaints about high prices were the most frequent since 2008 and half of all households said their finances had worsened, according to the survey. -Reuters
Gold jumps 2pc up to set record high for third day NEW YORK: Gold surged to a record high on Friday for the third straight day, as investors kept up a buying frenzy fueled by the outlook for low US interest rates that has propelled bullion to its seventh consecutive weekly rise, its longest winning streak since 2007. Bullion jumped to $1,569.30 an ounce as US consumer spending rose for a ninth straight month in March with inflation at its highest in nearly a year. Platinum group metals also rose about 2 per cent but silver fell 1 per cent after soaring to record high in the previous session. Option traders reported strong buying of call options and call spreads, reflecting bullish market expectations. A gauge of bullion market volatility also spiked in response to a sharp price rally.
"What has been driving gold is an abundance of liquidity of Fed policy that remains exceedingly accommodative, which is going to work against the US dollar," said Mark Luschini, chief investment strategist of broker-dealer Janney Montgomery Scott, which manages $53 billion in client assets. Spot gold was last up 1.8 per cent at $1,563.30 an ounce by 2100 GMT, having earlier hit an all-time high $1,569.30. The metal notched a 9 per cent monthly gain, its strongest since November. Bullion also posted its seventh consecutive weekly rise, its longest winning streak since 2007. US June futures settled up 1.7 per cent at $1,556.40 an ounce, with trading volumes about onethird below its 30-day average due to a public holiday in London. Silver retreated from the
record high it set Thursday, but was still by far the best-performing commodity in April and so far in 2011. It posted a near 27 per cent rise in April, its biggest monthly gain since April 1987. Silver was last down 0.8 per cent at $48.03 an ounce. Silver gained 3 per cent this week, although analysts say its robust performance against the other precious metals may not be sustainable. Speculators scaled back their bullish bets in COMEX silver futures and options to the lowest level since early February, even as prices neared the psychological $50 an ounce, regulator data showed Friday. For platinum group metals, platinum echoed the strength in gold, rising 1.9 per cent on the day to $1,870.49 an ounce, while palladium rose 2.6 per cent to $790.97. -Reuters
4 Monday, May 2, 2011
The Financial Daily International
Wall Street Week Ahead
Vol 4, Issue 175
Publisher & Editor-in-Chief: Amir A. Ashary Editor: Shakil H. Jafri Executive Editor: Manzar Naqvi Honorary Advisory Board Haseeb Khan, FCA
S. Muneer Hussain Rizvi
Asim Abbas Ashary, CPA
Khurram Shehzad, CFA
Akhtar M. Zaidi, FCA
Prof. Zakaria Sajid (KU)
Dr. A. Hadi Shahid, FCA
Zahid Bukhari SVP HBL (retd)
Muhammad Arif
Ismat Sabir Head office
111-C, Jami Commercial Street 11, Phase VII, DHA Karachi Telephone: 92-21-35311893-6 Fax: 92-21-35388428 URL: www.thefinancialdaily.com Email Address: editor@thefinancialdaily.com
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Eclipsing cotton outlook Skyrocketing cotton prices are on the journey down the hill. Export of yarn has already reduced and overall export of textiles and clothing in the remaining two months of the current financial year are also likely to fall short of market expectations. Let one point be very clear that any decline in exports of textiles and clothing will not be due to reduction in quantities but certainly due to hefty decline in unit price realization. Economists fear that not only achieving of the export target is in doldrums but the country may also face erosion in foreign exchange reserves. Despite crude oil prices hovering above US$100 barrel, Pakistan was able to contain current account deficit mainly due to quantum increase in export of textiles and clothing. The experts had warned that any substantial reduction in global prices of cotton can put the country at odds and their fears are coming true. The decline in cotton prices has already started making those farmers who were planning to switchover to cotton cultivation from sugarcane jittery. In these pages we had warned about the adverse impact of switching over to cotton from other crops and had also suggested that the government should discourage this trend. This suggestion came under criticism by those who think first about their own interest rather than about the national priorities. It was also suggested that instead of increasing area under cotton cultivation, the government as well as the farmers should focus on increasing yield. Return to farmers can be increased by ensuring higher production and productivity and not by increasing areas under cultivation of any crop. Experts have been saying for ages that achieving higher yield will not only increase production but also bring down the costs of input per ton of production achieved. Any reduction in unit price realization of the textiles and clothing will further increase the woes of value-adding sector. Since most of these are small and already crippled due to extensive load shedding of electricity and gas may find themselves highly uncompetitive in the global markets. Still the declining trend in cotton prices has become more than evident; it has become the collective responsibility of all the stakeholders to find the immediate solutions. With the declining cotton prices Pakistani exporters of textiles and clothing face rather bleak future. Therefore, the first effort should be on optimizing cost of production. It is necessary to recognize that the government has declared many of the sub-sectors of textiles zero rates. Now the effort should be on reducing interest rates and guaranteeing uninterrupted electricity and gas to export oriented units. Exporters should also double their efforts rather than depending on the crutches provided by the government.
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.
Sell in May & Go Away ajor U.S. stock indexes are at multiyear highs but Wall Street does not seem to be running out of steam -- not just yet. Robust corporate earnings and the Federal Reserve's promise to keep liquidity cheap have fueled the Nasdaq to a 10-year high and driven the Dow and the S&P to their highest levels since 2008. "We are clearly seeing signs of overbought conditions, but there is still a lot of optimism, especially after the S&P broke well above the 1,340 range. The next ceiling is really not until the 1,400 level," said Stephen Massocca, managing director of Wedbush Morgan in San Francisco. Heading into May, a seasonally weak month for stocks, the Dow and the Nasdaq posted their best monthly performance since December. At Friday's closing bell, the S&P 500 was up 8.4 percent for the year. With earnings season coming to an end, investors will shift their focus to economic data this week, especially the April employment report on Friday. Investors will scrutinize the jobs data for signs of improvement in the labor market. After a mixed batch of data last week,
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investors would need to see a solid gain in jobs to believe in sustainable economic growth. Nasdaq's rebalancing of its index may also cause a bit of a stir in the market this week. But despite the concerns, options investors were buying less protection against a market correction, according to James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania. "It's surprising, but ironically, the putto-call ratio on the S&P 500 rose" late in the week of April 18th and early in the final week of April, "but fell in the last few days." "We might see some reaction to the overbought conditions depending on the jobs number," he said, "but still, that would be a minor pullback, maybe down to test the 1,340 levels." Other economic data due this week include the ISM manufacturing data and domestic car sales on Monday, the ISM services-sector data on Wednesday, and weekly jobless claims on Thursday. NASDAQ REBALANCING Nasdaq will be rebalancing its benchmark Nasdaq 100 index on Monday, which will slash Apple Inc's weighting.
The rebalancing will affect the relative weights of all the securities in the index and cause popular index-tracking funds such as the Power Shares QQQ to buy and sell shares to match the new composition. "Apple shares are likely to see some volatility, but unlike 10 years ago, hedge funds and traders start trading on this (the rebalancing) from weeks ahead, so it won't be a huge event on the overall market," said Jack DeGan, chief investment officer of Harbor Advisory Corp in Portsmouth, New Hampshire. The CBOE Volatility Index or VIX, Wall Street's so-called fear gauge, was relatively low, ending Friday's session below 15, although it was up 0.9 percent for the day. "While conditions of being overbought and oversold can stick around for a while, as a trader, I feel this market is just too complacent. That is why I advocate looking at insurance, but also at this stage in the wave, ride it and not try to swim against it," said Joe Cusick, a senior market analyst at Chicago-based online brokerage firm optionsXpress. The VIX usually moves inversely with the S&P 500, tracking options prices that investors are willing to pay as pro-
tection on the price moves of the underlying stocks. So far, 324 of the S&P 500 companies have reported earnings, of which 73 percent were above analysts' expectations, according to Thomson Reutersdata. In a typical quarter, 62 percent of companies beat estimates.-Reuters
With earnings season coming to an end, investors will shift their focus to economic data this week, especially the April employment report on Friday.
Yin to Obama’s Yang hen Republican Jon Huntsman headed to China as ambassador nearly two years ago he praised his new boss, U.S. President Barack Obama, as "a remarkable leader." Now he is expected to launch a campaign to boot him from the White House. Huntsman, a popular former Utah governor with a gold-plated resume, has just returned to the United States after resigning his post in Beijing to consider a run for the 2012 Republican nomination to challenge Obama. He already has a campaign staff-in-waiting -- a political action committee packed with veteran Republicans -- and trips scheduled to the crucial early voting states of South Carolina and New Hampshire. But Huntsman's low national profile, moderate record on some social issues and time spent as Obama's man in Beijing raise doubts about his ability to win over the conservative activists who dominate the Republican nominating process. "Working for the Obama administration is going to be an albatross around Huntsman's neck, it's going to be brought up time and time again. That issue is a walking pinata," Republican consultant Ron Bonjean said. Huntsman's supporters say widespread voter dissatisfaction with the still-forming Republican field and a burning desire to find the challenger best suited to beating Obama in the general election will propel a Huntsman White House bid. "There is substantial reluctance among Republican primary voters to settle for the current field, they are not happy with the array of choices," said Republican Whit Ayres, who has signed up to be Huntsman's pollster if he makes a run. "There is clearly a need and desire for a fresh face and a new conservative voice, and Governor Huntsman can be that fresh face," he said. Huntsman's experience, good looks and person-
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able style make him a White House candidate out of central casting, although he is unknown nationally and has been out of the political loop for nearly two years while in Beijing. He is a Mormon, like potential rival Mitt Romney, which could be a stumbling block for religious conservatives. But he did not support Romney in 2008, backing Senator John McCain instead. He would run as a pragmatist whose record in Utah included accomplishments on tax reform and economic growth, along with faithful opposition to abortion rights and gun control. But social conservatives will frown on his support for civil unions and a regional cap-and-trade system on carbon emissions. Fresh off the plane from China, Huntsman attended a Washington dinner on Saturday night of celebrities, media figures and political players in another signal he might jump into the Republican nomination race. YIN AND YANG When Obama appointed Huntsman to Beijing in 2009 it was seen as a shrewd political move that took a potential rival out of the picture. But for Huntsman, 51, the job capped a longstanding interest in China and Asia. He has an adopted Chinese daughter and learned to speak Mandarin on a Mormon mission to Taiwan during college. His 1992 appointment as US ambassador to Singapore made him the youngest head of a U.S. diplomatic mission in a century. Huntsman's supporters say his work for Obama in China should not be an issue with primary voters. "He was asked by the President of the United States to serve his country in an area of his expertise and he answered the call," Ayres said. But his problems on the issue deepened recently when the Daily Calleronline newspaper published a letter Huntsman sent Obama before he left for
China calling him "a remarkable leader" and saying "it was a great honor" to get to know him. Chinese Vice President Xi Jinping, who is likely to succeed President Hu Jintao as the top Communist Party and state leader from late 2012, praised Huntsman before he departed Beijing. "We are reluctant to see him go. You are an old friend of the Chinese people," Xi told Huntsman in public. Perceived ties to Beijing could hurt Huntsman among U.S. voters upset at the loss of U.S. jobs and prestige to China. Signaling the Democratic approach to Huntsman, Obama has been happy to smother him with heavy praise and frequent jokes about their closeness in hopes of administering the kiss of political death to a Republican. "My dear, dear friend Jon Huntsman," Obama said with a laugh at a recent Washington press dinner. "Nobody has done more for my administration. He's the yin to my yang." Richard Quinn, a South Carolina consultant who headed McCain's 2000 and 2008 state campaigns, said he was sold on Huntsman after meeting him at a dinner with other potential supporters in South Carolina in early 2009. "He is comfortable in his shoes. He is very relaxed and isn't programmed," Quinn said. "He looks as good as Romney, except he has a personality." A Huntsman candidacy would test that theory in a party increasingly dominated by conservative Tea Party activists who carried out a string of primary upsets of establishment Republicans in last year's congressional elections. "His candidacy will be an excellent measure of how far right the party has moved over the last few years," said Dan Schnur, a Republican McCain aide in 2000 who now works at the University of Southern California.-Reuters
Symbolism, Sympathy & Strategy T he White House is using mostly symbolic measures to address soaring gasoline prices, but the strategy is failing to resonate with frustrated American voters. President Barack Obama, whose 2012 re-election bid may be complicated by the high gasoline prices, says he has no simple solution to drive down fuel costs, and his aversion to "quick fix" policy moves reflects that. His administration has neither tapped strategic oil reserves nor advocated a major increase in domestic drilling, and has not offered to trim taxes for drivers. Instead, Obama and his advisers have blamed market speculators for pushing up prices, criticized oil companies for reaping record profits, expressed sympathy for consumers and called on world oil producers to raise output -- all while advocating longer-term solutions involving renewable energy and conservation. "The most important thing we can do is have a long-term strategy to make sure we don't end up here again," Heather Zichal, Obama's top energy adviser, said in an interview. That strategy includes a push to reduce U.S. oil imports by a third over a decade by increasing domestic production, making cars and trucks more efficient, and fostering biofuels and natural gas. But focusing on long-term goals holds political risks for Obama as he seeks re-election. He already is seeing his support drop in opinion polls on his handling of the economy. In a Washington Post-ABC News poll of 1,001 U.S. adults published last week, 71 percent of those surveyed said gasoline prices are causing them serious financial hardship and 57 percent disapproved of the way Obama is handling the economy. While Obama's ability to control gasoline costs could impact his chances of re-election, demand
for oil from fast-growing countries such as China and India makes it nearly impossible for him to talk market prices down. "There's going to be a lot of political word smiting over the next few months, and ultimately I don't think it's going to work," said Ken Medlock, an energy expert at Rice University's Baker Institute in Houston. "I don't see ... any relief in sight." Republicans and the oil industry lobby contend that there is something that can work right away, which they say the Obama administration has thwarted: more drilling. "We're the third-largest producer in the world, and yet the signal that this administration is sending is that we're not interested in producing oil and gas in this country," said Thomas Pyle, president of the Washington-based Institute for Energy Research, a group that typically promotes the conventional energy industry, including more drilling. Republicans plan to bring to a vote at least one bill this week in the House of Representatives aimed at bolstering domestic energy production.
SHORT TERM, LONG TERM The White House argues that drilling is not a panacea for high energy costs, a contention backed up by industry analysts. Obama has called for lawmakers to get rid of $4 billion in subsidies for oil and gas companies, putting that money instead toward renewable energy research and deficit reduction. White House officials say their short-term approach to the price problem is multi-pronged. This includes investigating potential price gouging through a group set up by Attorney General Eric Holder, speaking to the public about reducing consumption through "town hall" meetings with Obama, and dangling the possibility of tapping the Strategic Petroleum Reserve.
"We've been clear that it is a tool that we have available at our disposal. We are monitoring the situation," Zichal said of the Strategic Petroleum Reserve, the largest stockpile of governmentowned emergency crude oil in the world. With unrest in the Middle East and North Africa having an effect on oil markets, foreign policy is another instrument in Obama's toolbox that could be used to affect prices hitting consumers at home. "Communicating a vision for what (is) America's policy in the Middle East more clearly, particularly regarding large oil producing states, would help create some more certainty in the markets," said Trevor Houser, director of energy and climate at the Rhodium Group, which does research for private companies. Obama said last week that his administration is talking to producer countries about increasing crude output, an echo of the Bush administration, which was not averse to pressuring OPEC into producing more oil. Pyle and most Republicans say the administration should turn its focus toward boosting deepwater drilling in the Gulf of Mexico, encouraging exploration in Alaska, and approving a new pipeline from Canada. The White House says activity in the Gulf is continuing, with 23 deepwater permits approved for 12 unique wells since new safety standards were set up after the 2010 BP oil spill. To ease voter angst, analysts said Obama has to show his concern -- a feeling the White House is eager to project -- even though his options are limited. "What you try to do is basically show that, hey, I've noticed," said Mark Hansen, a political science professor at the University of Chicago. "It's largely symbolic. It's more an expression of concern than anything that's going to have a substantiative effect on prices that people are paying at the pump.-Reuters"
5
Monday, May 2, 2011
Asian stocks surge for 2nd wk as as Fed hold rates low
European stocks log gains for week on strong earnings
Weekly Review
KSE rises 103pts WoW on active participation
KSE-100 Index Opening Closing Change % Change Turnover (mn)
11,954.37 12,057.54 103.17 0.86 522.58
LSE-25 Index Opening Closing Change % Change Turnover (mn)
3,278.82 3,267.99 10.83 0.33 26.54
ISE-10 Index Opening Closing Change % Change Turnover (mn)
2,622.55 2,687.52 64.97 2.48 0.30
Nawaz Ali
Major Gainers
Symbol UPFL COLG RMPL ILTM CPL
Close
Change
1,359.37 725.00 2,724.80 236.43 163.07
58.39 43.57 35.18 32.18 18.65
Major Losers
Symbol
Close
Change
NESTLE 3,504.87 ULEVER 5,045.40 WYETH 912.00 SIEM 1,059.29 BATA 454.71
-78.98 -42.38 -39.77 -15.71 -15.29
Top 5 Volume Leaders
Symbol
Close Vol (mn)
LOTPTA SILK PTC FFBL NIB
16.72 2.71 16.83 42.38 1.98
135.98 45.69 31.32 19.20 16.48
Active Issues Plus Minus Unchanged
209 180 58
Sector Updates FERTILISER 000 tonnes
Urea Offtake (Jan to Feb 11) 807 Urea Offtake (Feb 11) 413 Urea Price (Rs/50 kg) 1,195 DAP Offtake (Jan to Feb 11) 128 DAP Offtake (Feb 11) 69 DAP Price (Rs/50 kg) 4,041
AUTOMOBILE ASSEMBLER PAK SUZUKI MOTOR Units Production (July 10 to Feb 11) 53,036 Sales (July 10 to Feb 11) 52,067 Production (Feb 11) 5,883 Sales (Feb 11) 6,954
INDUS MOTOR CO Production (July 10 to Feb 11) 33,832 Sales (July 10 to Feb 11) 32,991 Production (Feb 11) 4,754 Sales (Feb 11) 4,698
HONDA ATLAS CAR Production (July 10 to Feb 11) 10,834 Sales (July 10 to Feb 11) Production (Feb 11)
10,444 1,555
Sales (Feb 11)
1,665
DEWAN FAROOQ MOTORS Production (July 10 to Feb 11) Sales (July 10 to Feb 11) Production (Feb 11) Sales (Feb 11)
186 133 0 20
BANKING SECTOR Scheduled bank (Rs in mn) Deposit (March 25,11) 5,046,487 Advances (March 25,11) 3,118,444 Investments (March 25,11) 2,202,311 Spread (Feburay 11) 7.51%
OIL MARKETING CO (000 tons) MS (Jul 10 to Jan 11) MS (Jan 11) Kerosene (Jul 10 to Jan 11) Kerosene (Jan 11) JP (Jul 10 to Jan 11) JP (Jan 11) HSD (Jul 10 to Jan 11) HSD (Jan 11) LDO (Jul 10 to Jan 11)) LDO (Jan 11) Fuel Oil (Jul 10 to Jan 11) Fuel Oil (Jan 11) Others (Jul 10 to Jan 11) Others (Jan 11)
PRICES (Ex-Refinery) MS (1 Apr 11) MS (1 Mar 11) MS % Chg Kerosene (1 Apr 11) Kerosene (1 Mar 11) Kerosene % Chg JP-1 (1 Apr 11) JP-1 (1 Mar 11) JP-1 % Chg HSD (1 Apr 11) HSD (1 Mar 11) HSD % Chg LDO (1 Apr 11) LDO (1 Mar 11) LDO % Chg Fuel Oil (1 Apr 11) Fuel Oil (1 Mar 11)
1,300 183 96 14 795 129 4,044 614 38 5 5,007 680 98 15
Rs 59.35 53.88 10.15% 68.95 63.31 8.91% 70.88 63.54 11.55% 75.02 66.53 12.76% 65.27 60.96 7.07% 56,777 53,252
HONG KONG: Celebrations on the first day of trading at the Hong Kong Stock Exchange of the first yuan-denominated security being trade outside mainland China as Beijing seeks to broaden the use of its currency.-Reuters
Sell but not so rapidly NEW YORK: Major US stock indexes are at multi-year highs but Wall Street does not seem to be running out of steam, not just yet. Robust corporate earnings and the Federal Reserve's promise to keep liquidity cheap have fueled the Nasdaq to a 10-year high and driven the Dow and the S&P to their highest levels since 2008. "We are clearly seeing signs of overbought conditions but there is still a lot of optimism, especially after the S&P broke well above the 1,340 range. The next ceiling is really not until the 1,400 level," said Stephen Massocca, managing director of Wedbush Morgan in San Francisco. Heading into May, a seasonally weak month for stocks, the Dow and the Nasdaq posted their best monthly performance since December. At Friday's closing bell, the S&P 500 was up 8.4 per cent for the year. With earnings season coming to an end, investors will shift their focus to economic data this week, especially the April employment report on Friday. Investors will scrutinize the jobs data for signs of improvement in the labor market. After a mixed batch of data this past week, investors would need to see a solid gain in jobs to believe in sustainable economic growth. Nasdaq's rebalancing of its index may also cause a bit of a stir in the market this week. But despite the concerns, options investors were buying less protection against a market correction, according to James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania. "It's surprising, but ironically, the put-to-call ratio on S&P 500 rose late last week and early this past week, but fell in the last few days," he said. "We might see some reaction to the overbought conditions depending on the jobs number, but still, that would be a minor
pullback, maybe down to test the 1,340 levels." Other economic data due this week include the ISM manufacturing data and domestic car sales on Monday, the ISM services-sector data on Wednesday, and weekly jobless claims on Thursday. Nasdaq will be rebalancing its benchmark Nasdaq 100 index on Monday that will slash Apple Inc's weighting. The rebalancing will affect the relative weights of all the securities in the index and cause popular index-tracking funds such as the PowerShares to buy and sell shares to match the new composition. "Apple shares are likely to see some volatility, but unlike 10 years ago, hedge funds and traders start trading on this (the rebalancing) from weeks ahead, so it won't be a huge event on the overall market," said Jack DeGan, chief investment officer of Harbor Advisory Corp in Portsmouth, New Hampshire. The CBOE Volatility Index or VIX, Wall Street's so-called fear gauge, was relatively low, ending Friday's session below 15, although it was up 0.9 per cent for the day. "While conditions of being overbought and oversold can stick around for a while, as a trader, I feel this market is just too complacent. That is why I advocate looking at insurance, but also at this stage in the wave, ride it and not try to swim against it," said Joe Cusick, senior market analyst at Chicago-based online brokerage firm optionsXpress. The VIX usually moves inversely with the S&P 500, tracking options prices that investors are willing to pay as protection on the price moves of the underlying stocks. So far, 324 of the S&P 500 companies have reported earnings, of which 73 per cent were above analysts' expectations, according to Thomson Reuters data. In a typical quarter, 62 per cent of companies beat estimates. -Reuters
FAM announces interim payout Staff Reporter KARACHI: Faysal Asset Management (FAM) has announced interim payouts for various funds under its management for the quarter ended March 31, 2011. The asset management company has announced dividend of Rs3.75 for Faysal Savings Growth Fund (FSGF), Rs.3.50 for Faysal Income & Growth Fund (FIGF), Rs2.65 for Faysal Islamic Savings Growth Fund (FISGF) and Rs2.00 for Faysal Money Market Fund (FMMF), for the quarter ended March 31, 2011 for each unit of par value of Rs.100. Cumulative payout for the nine month period comes to Rs8.00 for Faysal Savings Growth Fund (FSGF), Rs.6.50 for Faysal Income & Growth Fund (FIGF), Rs6.65 for Faysal Islamic Savings Growth Fund (FISGF) and Rs2.40 for Faysal Money Market Fund (FMMF) on per unit of par value of Rs.100. Apart from the above funds, Faysal Asset Management Limited also manages Faysal Balanced Growth Fund (FBGF) and Faysal Asset Allocation Fund (FAAF) both of which are 5-star rated funds by JCR-VIS. FAML is rated (AM2-) by the JCR-VIS which is reflective of the high management quality of the Company, and provides investors the confidence of being invested with one of the best rated asset management companies of the country.
PICIC Cash Fund announces interim dividend Staff Reporter KARACHI: PICIC Cash Fund has announced a bonus of Rs0.95 per unit. An investor holding 100 units as on April 25, 2011 will get 0.9494 units on the ex-bonus price of Rs100.0648 per unit. PICIC Cash Fund is managed by PICIC Asset Management Company (PICIC AMC), a wholly owned subsidiary of NIB Bank Limited with a paid-up capital of Rs3,000 million. The Company has been rated AM3 by JCR-VIS meaning that the asset manager meets good investment management industry standards and benchmarks. Currently, PICIC AMC manages three closed-end funds and two open end funds with an investor base of around 40,000 and total assets under management (AUM) of around Rs 14.704 billion as of March, 2011.
KARACHI: Bulls dominated the Karachi Stock Exchange last week and helped in breaching psychological barrier of 12,000 points. Investors bought shares of oil, banking and fertiliser sectors on better corporate results and higher international oil prices. The benchmark KSE-100 index was up 103 points to close at 12,057 points, with index touching the highest level of 12,135 points during the week KSE-30 index rose by 108 points to close at 11,716 points and KSE all-share index grew by 75 points to close at 8,397 points. Yawar-Uz-Zaman, analyst at Invest Cap said that despite concerns regarding gas and electricity shortages in the country, directly affecting the industrial output, oil, fertilisers along with banking sector scrips enjoyed impressive earnings due to increase in local commodity prices and higher returns on advances as well as contained provisioning. The week began on a
depressing note where index lost 38 points on Monday due to lower investors' participation. Despite some better corporate results investors preferred to stay on the sidelines due to concerns relating to capital gains tax. However, market stayed mainly in the grip of bulls over the next four days with better corporate result volumes improved as investors took positions but the turnover remained restricted to some selected stocks. The index gained 17, 13 and 19 points respectively over the next three days. Bullish activities then increased on Friday on rising international oil prices and hopes of better corporate result. Investors bought oil and fertiliser sector scrips. The index breached the psychological level of 12,000 points and closed the day with 90 points up. Results season was in full swing during the week where most of the major companies announced their corporate results during the week which include OGDC, PPL, FFBL, See # 6 Page 11
Gulf stocks mkt
SArabia falls for 2nd day; UAE slips DUBAI: Retail traders book profits, weighing on Saudi Arabia's index as petrochemical stocks lead declines. The benchmark ends 0.4 per cent lower at 6,684 points, declining for second day since Wednesday's 14-week peak. It rose 2.3 per cent in April. "We saw a resurgence in volumes that means the retail investors are heavy, so moves are more volatile," says a Riyadh-based trader who spoke on condition of anonymity. "I would expect that trend to continue." Analysts say the market must consolidate before it can move higher. The petrochemicals index slips 0.6 per cent. Heavyweights Saudi Basic Industries Corp (SABIC) and Rabigh Refining and Petrochemical Co fall 0.5 and 2.1 per cent respectively. Saudi Kayan Petrochemicals dips 0.8 per cent. UAE bourses fall to a twoweek low, as investor concerns on the country's inclusion in MSCI emerging market status weigh. Dubai's index retreats 0.4 per cent lower to 1,628 points, its lowest close since April 14. Dubai Investment, down 2.8 per cent, falls for second See # 7 Page 11
KARACHI: Bilal Mustafa, Managing Director, The Bank of Khyber receiving first prize for the wall calendar 2010 from Mirza Ikhtiar Baig, Adviser to Prime Minister on Textile at the 42nd Annual NCCA Print & Design Competition Award Ceremony.-Staff Photo
Dhiyan
CORRECTION EXPECTATIONS HIGH Farhan Mansuri, VP Capital Markets, Arif Habib Limited Since market is trading at higher levels, we expect correction of 400-500 points in the coming days. Investors are advised to be cautious and avoid investing at current levels and adopt a 'sell on strength' stance. After correction the attractive levels would make the market to rebound, while positive news regarding budget would also support the market. There might be correction in the market today.
Muhammad Ahsan Rasheed Director Research & Marketing, AMJ Growth The stability on the political front will overcome the tense security situation. If foreigners stay on the buying side we can see the market to remain bullish. Further increase in commodity prices would also give a boost to the market. Therefore if the index manages to sustain the resistance level of 12,350 points, it can cross 12,700 level. Investors are advised to invest in blue chips belonging to oil, fertiliser, cement and chemical sectors with stop loss while day trading should be avoided. Market would be positive today.
6
Monday, May 2, 2011
Market
KSE 100 Index
Symbols
Volume
522,582,003
Value
17,126,604,578
Trades
269,587
Advanced Decline Unchanged Total
209 180 58 447
Current High Low Change
All Share Index
12,057.54 12,135.63 11,891.40 h103.17
Current High Low Change
OIL AND GAS
Company
Paid up Cap(mn)
PE
High Low 1,501.43 1,436.13 Total cos Defaulter cos 12 P/BV (x) ROE (%) 3.27 32.54
Open
High
Low
Attock Petroleum 691 6.96 373.40 Attock Refinery 853 4.17 123.99 BYCO Petroleum 3921 8.94 Mari Gas Company 735 4.33 108.26 National Refinery 800 4.81 329.40 Oil & Gas Development 43009 9.86 138.69 Pak Petroleum 11950 7.77 211.26 Pak Oilfields 2365 7.24 326.46 Pak Refinery Limited 350 47.11 87.66 P.S.O 1715 4.65 273.89 Shell Gas LPG 226 - 27.50 Shell Pakistan 685 7.49 210.81
387.40 129.40 9.00 108.99 356.50 146.68 216.50 330.99 88.20 278.80 28.29 213.00
369.10 120.80 8.50 105.70 326.60 137.91 210.00 322.75 84.00 271.31 24.50 210.00
Close Chg 385.38 127.11 8.64 105.90 347.90 145.66 212.43 328.40 84.33 274.87 24.93 210.76
11.98 3.12 -0.30 -2.36 18.50 6.97 1.17 1.94 -3.33 0.98 -2.57 -0.05
Last 60 days High Low
Volume
624830 391.50 4178962 129.40 2066287 10.43 44084 131.90 1660017 356.50 10196001 173.50 4236551 217.25 4559436 333.00 294538 110.50 1809846 294.49 51698 32.97 42411 218.99
321.00 98.25 8.20 99.46 254.00 128.21 190.10 277.09 83.00 265.00 23.04 186.83
2010 Div BR (%) (%) 300 31 200 55 90 255 80 120
2011 Div BR (%) (%)
20B115.00 - 23.43 - 30.00 20B 50.00 -100.00 - 50.00 -
-
Open High Low 1,833.60 1,881.05 1,805.61 Turnover Total cos Defaulter cos 199,863,950 36 6 P/E (x) P/BV (x) ROE (%) 8.99 3.15 35.00 PE
Open
High
Low
Agritech Limited 3924 22.00 21.89 Biafo Ind 200 5.59 47.00 BOC (Pak) XD 250 7.16 96.46 Clariant Pak 341 4.98 144.42 Dawood Hercules 4813 3.65 64.10 Descon Chemical 1996 2.61 Descon Oxychem Ltd. 1020 11.79 8.20 Dewan Salman 3663 2.58 Dynea Pak 94 3.57 9.95 Engro Corporation Ltd 3933 8.82 196.53 Engro Polymer 6635 - 12.57 Fatima Fertilizer 22000 - 12.86 Fauji Fertilizer 8482 8.73 140.87 Fauji Fert. Bin Qasim 9341 6.34 41.79 Ghani Gases Ltd 725 11.44 13.76 ICI Pakistan XD 1388 8.72 159.04 Ittehad Chemical 360 3.07 25.18 Leiner Gelatine 75 - 24.62 Lotte Pakistan 15142 4.67 15.67 Mandviwala 74 1.21 Nimir Ind Chemical 1106 11.78 2.82 Pak Gum 42 4.67 17.00 Sardar Chemical 60 1.07 1.20 Shaffi Chemical 120 28.75 2.20 Sitara Chem Ind 214 2.48 100.11 Sitara Peroxide 551 5.83 17.52 Wah-Noble 90 5.16 36.50
22.47 51.97 98.35 165.00 64.00 2.75 8.59 2.88 11.15 198.80 12.83 13.07 145.21 42.85 14.10 161.00 24.00 24.55 17.36 1.39 2.98 16.99 1.01 2.99 101.45 19.99 37.90
20.43 49.35 94.00 143.00 62.00 2.45 7.55 2.48 9.50 192.60 11.80 12.60 139.20 41.30 12.60 152.50 21.00 22.23 15.60 0.90 2.66 15.05 0.75 2.00 96.37 17.00 35.50
Close Chg 22.00 49.50 95.11 163.07 62.98 2.48 8.02 2.50 10.89 197.46 12.02 12.75 141.91 42.38 13.04 156.89 21.12 22.24 16.72 1.20 2.71 16.99 0.75 2.30 100.06 18.83 36.50
0.11 2.50 -1.35 18.65 -1.12 -0.13 -0.18 -0.08 0.94 0.93 -0.55 -0.11 1.04 0.59 -0.72 -2.15 -4.06 -2.38 1.05 -0.01 -0.11 -0.01 -0.45 0.10 -0.05 1.31 0.00
Close 1,850.38 Listed cap 52,251.88 mn Payout (%) 48.81
Change % Change 16.78 0.92 Market cap 200-Day High 385,791.86 mn Div Yield (%) 200-Day Low 5.43 -
Last 60 days High Low
Volume
7069 24.90 19370 51.97 12253 98.35 556432 206.79 762544 294.00 266701 3.58 6957122 9.60 5317814 3.39 67812 11.50 5407489 238.50 1377338 13.95 2440467 13.60 8662420 154.49 19202337 43.89 3920257 14.49 4374703 172.00 5530 29.85 7034 26.82 135982550 17.36 6568 1.84 3315910 3.40 5397 24.90 30000 1.90 14148 2.99 12530 118.00 3766668 19.99 6365 38.85
20.00 42.90 82.00 140.00 61.25 2.34 6.00 2.26 9.50 189.00 11.56 10.75 108.00 37.86 10.43 138.10 21.00 9.15 14.05 0.57 1.84 15.05 0.75 1.55 90.78 11.81 34.31
2010 Div BR (%) (%)
2011 Div BR (%) (%)
45 - 49.50 60 135 25B 50 300B 15 60 20B - 27.5R 130 25B 65.5 - 12.50 175 5 5 5 25 5B 50 -
-
FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,062.86 Turnover 107,086 P/E (x) 5.29 Company
High Low 1,093.08 1,030.79 Total cos Defaulter cos 4 1 P/BV (x) ROE (%) 0.39 7.47
Close 1,048.65 Listed cap 1,186.83 mn Payout (%) 25.28
Paid up Cap(mn)
PE
Open
High
Low
Close Chg
Volume
707 50 411
1.76 6.81
15.66 41.36 39.15
16.50 44.49 39.49
14.86 40.17 38.00
15.50 -0.16 41.15 -0.21 38.50 -0.65
84319 6300 16467
Century Paper Pak Paper Product Security Paper
Last 60 days High Low 17.50 46.20 39.90
13.85 35.17 34.00
2010 Div BR (%) (%) 2533.33B 50 -
-
-
Company Crescent Steel Dost Steels Ltd Huffaz Pipe XD International Ind
PE
565 1.96 675 555 400.00 1199 18.91
Open 27.85 1.85 12.76 52.64
High 29.75 2.24 13.00 52.99
High Low 1,073.39 1,031.55 Total cos Defaulter cos 7 1 P/BV (x) ROE (%) 1.07 33.10 Low 26.91 1.81 11.71 51.75
Close Chg 28.98 2.05 12.00 52.00
1.13 0.20 -0.76 -0.64
Close 1,057.18 Listed cap 3,596.11 mn Payout (%) 30.91
Volume 564264 100733 64164 150378
29.99 2.95 14.90 54.50
25.67 1.80 11.71 45.81
2010 Div BR (%) (%) 30 40
-
CONSTRUCTION AND MATERIALS Performance of SR Construction and Materials Index Open 915.76 Turnover 22,924,465 P/E (x) 6.72 Company
Paid up Cap(mn)
Al-Abbas Cement Attock Cement Balochistan Glass Ltd Berger Paints Cherat Cement Dadabhoy Cement Dewan Cement DG Khan Cement Ltd Fauji Cement Fecto Cement Flying Cement Ltd Gammon Pak Gharibwal Cement Haydery Const Javedan Cement Kohat Cement Lafarge Pakistan Cmt. Lucky Cement Maple Leaf Cement Mustehkam Cement Pioneer Cement Safe Mix Concrete Thatta Cement
High Low 922.27 892.06 Total cos Defaulter cos 37 6 P/BV (x) ROE (%) 0.48 7.10
PE
Open
High
Low
1828 866 6.74 858 182 956 47.48 982 15.00 3891 3651 32.03 6933 7.05 502 5.98 1760 283 4003 32 581 1288 13126 76.25 3234 5.96 5261 417 2271 200 798 908.50
2.83 54.55 2.25 16.02 11.25 1.95 1.57 24.83 4.13 7.90 1.55 1.18 12.02 0.54 59.99 7.12 3.15 72.98 2.38 9.80 5.65 5.00 18.50
2.99 54.50 2.89 16.24 11.60 2.08 1.72 24.84 4.22 8.50 1.84 1.99 13.50 0.60 61.80 7.40 3.24 73.69 2.46 9.50 5.68 5.88 18.80
2.56 52.25 2.25 15.09 9.80 1.75 1.52 23.80 4.00 6.40 1.45 1.20 10.48 0.40 57.05 6.51 3.01 72.00 2.21 9.00 5.41 5.00 17.40
Close 902.80 Listed cap 54,792.74 mn Payout (%) 19.04
Change % Change -12.96 -1.42 Market cap 200-Day High 66,778.76 mn Div Yield (%) 200-Day Low 2.83 -
Close Chg
Volume
Last 60 days High Low
2.99 53.27 2.51 15.16 9.97 1.95 1.70 24.02 4.09 6.94 1.48 1.97 10.48 0.40 61.80 6.71 3.05 73.40 2.22 9.00 5.50 5.50 18.17
39528 25809 87153 36135 41893 192985 460395 10983082 2495883 54032 107635 30212 205842 68220 6603 281817 1537212 2706309 605829 5571 191909 17818 2750090
3.50 56.70 3.00 21.35 11.90 2.08 2.24 29.59 4.82 8.90 1.95 3.65 13.50 0.90 64.52 7.87 3.45 73.69 2.89 13.48 6.96 7.50 19.19
0.16 -1.28 0.26 -0.86 -1.28 0.00 0.13 -0.81 -0.04 -0.96 -0.07 0.79 -1.54 -0.14 1.81 -0.41 -0.10 0.42 -0.16 -0.80 -0.15 0.50 -0.33
2.15 48.50 1.99 14.72 8.00 1.50 1.50 21.20 3.97 6.30 1.30 1.00 4.70 0.32 56.72 5.11 2.65 59.55 1.92 8.48 5.17 4.41 16.20
2010 Div BR (%) (%) - 100R 50 - 122R - 20R 40 - 210R - 50R
2011 Div BR (%) (%) -
20R 92R -
GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 982.02 Turnover 2,465,747 P/E (x) 2.79 Company
Paid up Cap(mn)
Cherat Papersack ECOPACK Ltd Ghani Glass MACPAC Films Merit Pack Packages Ltd XD
PE
Open
115 2.42 55.00 230 1.62 1067 5.50 53.47 389 3.79 11.00 47 12.96 31.02 844 18.33 112.25
High
Close Chg -5.70 0.27 0.60 2.93 -2.13 -2.25
Volume 494385 759013 68866 491008 27141 429116
Change % Change 2.29 0.23 Market cap 200-Day High 36,503.44 mn Div Yield (%) 200-Day Low 5.58 -
Last 60 days High Low 75.20 2.77 55.25 14.70 33.80 130.75
Open
High
Low
Close Chg
Volume
Last 60 days High Low
71.08 30.00
73.00 30.89
67.53 28.99
69.28 -1.80 29.00 -1.00
32861 25154
76.25 36.00
47.80 1.40 49.00 3.15 27.00 105.02
2010 Div BR (%) (%) 20 25 32.5
25B 10B -
2011 Div BR (%) (%) -
50R -
63.00 28.99
Open 1,149.79 Turnover 977,249 P/E (x) 3.92 Paid up Cap(mn)
PE
Open
Agriautos Ind 144 4.44 71.85 Atlas Battery 101 5.69 209.89 Atlas Honda 626 9.28 147.00 Baluchistan Wheels Ltd. 133 1.53 34.61 Dewan Motors 1087 1.90 General Tyre 598 4.57 24.22 Ghandhara Nissan 450 3.65 Ghani Automobile Ind 200 6.72 3.85 Honda Atlas Cars 1428 - 10.15 Indus Motors 786 7.60 220.04 Pak Suzuki XD 823 15.75 70.79 Sazgar Engineering 150 1.20 23.95
High
High Low 1,165.21 1,136.93 Total cos Defaulter cos 19 4 P/BV (x) ROE (%) 0.99 25.35 Low
Close Chg
74.85 72.00 72.10 0.25 216.30 209.00 214.11 4.22 153.93 145.10 148.81 1.81 36.34 32.88 32.88 -1.73 1.99 1.70 1.70 -0.20 26.17 24.00 24.01 -0.21 4.50 3.60 3.60 -0.05 3.90 3.33 3.56 -0.29 10.15 9.50 9.85 -0.30 223.90 218.01 220.00 -0.04 71.00 67.19 69.93 -0.86 25.50 24.00 24.50 0.55
Close 1,147.85 Listed cap 6,768.53 mn Payout (%) 20.42
PE
Open
100 6.75 215 3.75 212.80 104 4.65 46.78 214 1.21 213 11.06 9.70 132 - 46.03 366 7.84 526.48
High
Low
Close Chg
6.10 5.75 5.85 217.66 208.51 216.96 50.33 46.66 47.12 1.45 1.05 1.06 9.90 9.00 9.29 47.80 39.50 41.48 529.60 510.00 516.19
-0.90 4.16 0.34 -0.15 -0.41 -4.55 -10.29
Volume 6000 36570 10491 8727 38402 8566 126369
6.75 240.00 52.25 2.00 11.90 63.89 556.97
5.00 199.05 42.70 0.80 8.25 39.50 466.27
2010 Div BR (%) (%) 400 25 12.5 650
2011 Div BR (%) (%)
10B 25B325.00
-
2011 Div BR (%) (%) -
-
Volume
Last 60 days High Low
7427 74.97 43079 216.30 122712 153.93 10954 37.99 158662 2.45 372199 26.17 34832 4.99 15301 5.00 104194 11.70 36049 293.00 26545 76.90 41542 25.50
66.45 180.00 120.30 31.99 1.50 21.08 2.82 3.33 9.50 205.51 60.00 20.50
2010 Div BR (%) (%) 90 100 50 25 20 150 5 10
2011 Div BR (%) (%)
20B 15B 65.00 - 50.00 20B 10.00
15B -
Fundamental Highlights As on Dec 31, 2009
Technical Analysis RSI (14-day)
68.89
Total Assets (Rs in mn)
MA (10-day)
2.34
Total Equity (Rs in mn)
MA (100-day)
2.43
Revenue (Rs in mn)
MA (200-day)
2.60
Interest Expense
1st Support
2.61
Loss after Taxation
2nd Support
2.44
EPS 09 (Rs)
1st Resistance
2.97
Book value / share (Rs)
2nd Resistance
3.16
PE 10 E (x)
Pivot
2.80
PBV (x)
68,664.34 196.91 5,913.32 5,855.52 (2,902.91) (3.224) 0.22 12.39
SILK closed up 0.47 at 2.71. Volume was 385 per cent above average (trending) and Bollinger Bands were 126 per cent wider than normal. The company's loss after taxation stood at Rs1.131 billion which translates into a Loss Per Share of Rs0.49 for the year ended CY10. SILK is currently 4.3 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 SILK (bullish). Trend forecasting oscillators are currently bullish on SILK.
Azgard Nine Limited
FOOD PRODUCERS Performance of SR Food Producers Index Open 2,086.84 Turnover 1,053,505 P/E (x) Company
Paid up Cap(mn)
AL-Noor Sugar Bawany Sugar Chashma Sugar Crescent Sugar Dewan Sugar Habib Sugar Habib-ADM Ltd Haseeb Waqas J D WSugar Kohinoor Sugar Mehran Sugar Mirza Sugar National Foods Noon Sugar Quice Food S S Oil Shahmurad Sugar Shakarganj Mills
186 87 287 214 365 750 200 324 539 109 157 141 414 165 107 57 211 695
High Low 2,114.90 2,036.46 Total cos Defaulter cos 61 16 P/BV (x) ROE (%) 14.30 30.30
PE
Open
High
Low
Close Chg
1.04 3.71 0.74 9.41 5.15 1.32 1.88 11.22 2.15 6.59 0.32 3.25 0.45
44.50 7.30 10.00 7.79 3.01 23.86 12.00 13.00 74.53 3.96 59.50 2.81 60.20 19.51 2.75 4.65 9.49 6.74
47.50 9.25 10.20 7.95 3.15 24.50 12.84 13.00 77.35 3.96 60.49 3.11 66.00 21.80 3.15 6.45 9.70 6.90
41.63 7.25 9.25 7.35 3.01 23.50 12.00 11.00 74.50 3.00 57.60 2.90 60.64 19.00 2.75 4.51 8.80 5.81
41.63 8.34 9.50 7.35 3.10 23.72 12.78 11.10 74.80 3.00 57.69 3.00 64.94 20.05 2.90 5.29 9.50 6.33
-2.87 1.04 -0.50 -0.44 0.09 -0.14 0.78 -1.90 0.27 -0.96 -1.81 0.19 4.74 0.54 0.15 0.64 0.01 -0.41
Close 2,072.62 Listed cap 11,335.33 mn Payout (%) 30.57
Volume 30267 23933 15729 9999 138311 139104 9127 58543 5170 75503 13392 14015 26249 172805 79500 108000 40523 72688
Change % Change -14.22 -0.68 Market cap 200-Day High 293,066.81 mn Div Yield (%) 200-Day Low 0.65 -
Last 60 days High Low 49.50 9.25 10.40 8.30 3.99 24.50 12.84 19.70 77.99 4.69 60.49 5.50 66.00 21.80 4.00 6.45 9.90 7.49
39.50 5.05 8.00 6.00 2.52 20.25 10.80 11.00 68.00 2.45 50.12 2.65 52.01 10.11 2.55 2.50 8.00 4.01
2010 Div BR (%) (%)
2011 Div BR (%) (%)
50 10 25 25B 40 10 7010B 12.5R 35 20B 7.50 10 12 10 -
-
HOUSEHOLD GOODS Open 900.74 Turnover 924,051 P/E (x) 1.58 Company
Paid up Cap(mn)
High Low 913.40 819.37 Total cos Defaulter cos 15 7 P/BV (x) ROE (%) 0.17 10.64
Close 822.12 Listed cap 3,763.71 mn Payout (%) 6.27
PE
Open
High
Low
Close Chg
Volume
Gauhar Engineering Ltd 22 Pak Elektron 1219 7.28 Singer Pak 375 23.66 Tariq Glass Ind 231 1.71
1.99 10.63 19.77 13.60
2.39 10.80 20.76 14.00
1.40 9.03 19.37 12.61
1.95 -0.04 9.03 -1.60 19.40 -0.37 12.95 -0.65
69000 358158 5388 488317
Company
Paid up Cap(mn)
Ali Asghar Textile Amtex Limited Artistic Denim Azam Textile Azgard Nine Babri Cotton Bannu Woolen XD Bata (Pak) XD Blessed Tex Mills Chakwal Spinning Chenab Limited Colony Mills Ltd Crescent Fibres Ltd Crescent Jute Crescent Textile D M Textile D S Ind Ltd Dar-es-Salaam D. Lawrencepur XB Dewan Farooque Spin. Dewan Khalid Textile Dewan Mushtaq Textile Din Textile Ellcot Spinning Gadoon Textile XD Gul Ahmed Textile Gulistan Spinning Gulistan Textile Gulshan Spinning H M Ismail Hajra Textile Hira Textile Mills Ltd. Ibrahim Fibres Idrees Textile Ishaq Textile J A Textile J K Spinning Janana D Mal Khalid Siraj Kohinoor Ind Kohinoor Mills Kohinoor Spinning Kohinoor Textile Masood Textile Mubarak Textile Nagina Cotton Nishat (Chunian) Nishat Mills Pak Leather Pak Synthetic Paramount Spinning Prosperity Ravi Textile Redco Textile Reliance Weaving Rupali Poly Saif Textile Sajjad Textile Salfi Textile Sally Textile Samin Textile Sana Ind Sargodha Spinning Saritow Spinning Service Ind XD Shahtaj Textile Suraj Cotton Tata Textile Thal Ltd Treet Corp Zephyr Textile Ltd Zil Limited
222 2594 840 133 4493 37 76 76 64 400 1150 2442 124 238 492 31 600 80 591 978 57 34 204 110 234 635 146 190 222 120 138 716 3105 180 97 126 184 48 107 303 509 1300 2455 600 54 187 1620 3516 34 560 174 185 250 213 308 341 264 213 33 88 267 55 312 133 120 97 180 173 307 418 594 53
PE
Open
1.00 2.21 7.91 21.00 0.40 2.50 6.65 0.22 17.40 0.54 19.87 5.35 470.00 0.65 61.79 0.68 1.07 2.42 1.75 2.10 0.74 10.79 0.79 3.92 13.90 4.00 1.15 2.92 - 37.50 1.71 3.10 0.22 1.52 0.21 3.90 0.77 28.50 0.67 27.00 0.84 87.47 3.17 51.10 0.36 7.30 0.57 20.00 0.40 10.50 1.40 0.60 0.93 4.51 3.45 47.39 2.75 5.05 0.65 5.25 3.00 0.94 8.00 0.37 16.98 0.34 1.44 1.47 1.90 0.56 1.12 8.47 4.60 1.70 17.60 1.05 0.70 16.15 4.36 28.24 5.59 64.98 2.85 3.07 18.99 0.69 13.00 1.04 15.00 0.97 5.88 0.50 0.70 12.00 3.16 41.65 0.53 8.80 1.25 0.32 55.74 0.32 7.00 2.74 5.40 3.16 40.89 1.16 4.10 0.37 1.99 6.32 164.17 1.43 24.32 0.78 37.33 0.56 36.29 5.36 107.56 6.36 49.29 5.58 2.66 6.41 63.14
High
Low
Close Chg
Last 60 days High Low
2010 Div BR (%) (%)
2.39 14.59 24.09 23.50
17.5
0.25 9.03 17.82 12.00
1.10 1.00 1.00 0.00 2.30 2.09 2.20 -0.01 23.13 21.00 22.00 1.00 2.85 2.25 2.50 0.00 6.75 5.27 5.39 -1.26 17.99 16.50 17.21 -0.19 20.99 18.40 19.04 -0.83 502.99 451.00 454.71-15.29 68.09 61.79 67.78 5.99 1.39 1.07 1.30 0.23 2.70 2.35 2.50 0.08 2.14 1.80 2.00 -0.10 12.77 10.79 12.77 1.98 1.10 0.52 0.72 -0.07 15.54 13.06 14.60 0.70 3.70 3.70 3.70 -0.30 1.34 1.02 1.11 -0.04 3.47 2.50 3.46 0.54 38.75 36.02 38.64 1.14 4.00 2.60 2.60 -0.50 1.84 1.50 1.50 -0.02 5.40 3.80 4.01 0.11 30.47 27.12 30.25 1.75 28.74 24.75 28.25 1.25 91.47 83.50 84.99 -2.48 53.65 48.57 50.12 -0.98 9.00 7.50 8.71 1.41 21.00 20.00 20.00 0.00 11.68 10.00 11.05 0.55 2.10 1.16 1.50 0.10 1.40 0.51 0.51 -0.09 4.90 4.41 4.66 0.15 49.92 46.51 48.30 0.91 5.70 4.53 5.01 -0.04 8.24 5.25 8.15 2.90 2.50 2.10 2.10 -0.90 9.35 8.12 8.56 0.56 17.80 16.00 17.00 0.02 1.65 1.10 1.25 -0.19 1.75 1.30 1.36 -0.11 2.00 1.90 2.00 0.10 1.59 0.25 1.37 0.25 5.00 4.26 4.91 0.31 18.89 17.20 18.38 0.78 1.20 0.51 0.91 -0.14 17.95 15.25 17.25 1.10 29.35 27.55 28.33 0.09 66.00 62.70 62.96 -2.02 2.85 1.86 2.30 -0.55 20.05 17.51 19.20 0.21 14.53 12.99 13.94 0.94 16.90 14.25 16.00 1.00 1.00 0.70 0.92 -0.05 1.00 0.37 1.00 0.50 14.00 11.80 13.46 1.46 43.73 41.60 41.95 0.30 11.14 8.75 10.75 1.95 1.25 0.90 0.90 -0.35 61.35 53.00 61.35 5.61 9.35 6.00 8.42 1.42 6.00 5.10 5.61 0.21 41.85 39.75 41.75 0.86 4.95 3.01 3.85 -0.25 1.99 1.65 1.85 -0.14 172.34 160.00 172.34 8.17 26.29 24.99 25.53 1.21 42.00 38.50 40.28 2.95 42.40 35.05 40.96 4.67 108.50 102.25 103.25 -4.31 53.40 48.66 51.74 2.45 4.80 2.66 4.30 1.64 67.20 58.50 59.14 -4.00
Close 979.25 Listed cap 47,070.70 mn Payout (%) 16.68
Volume
Open 985.34 Turnover 185,574 P/E (x) 6.52 Company
Paid up Cap(mn)
Abbott (Lab) XD 979 Ferozsons (Lab) 250 GlaxoSmithKlineXDXB 1963 Highnoon (Lab)XDXB 182 IBL HealthCare Ltd 200 Sanofi-Aventis 96 Searle Pak 306
PE
Open
5.67 89.50 8.00 93.27 10.57 75.99 5.97 27.47 4.70 11.10 - 148.55 5.45 63.08
High
High Low 997.31 969.78 Total cos Defaulter cos 9 P/BV (x) ROE (%) 1.45 22.31 Low
Close Chg
94.00 90.25 92.50 3.00 96.65 91.00 96.65 3.38 75.69 73.26 73.97 -2.02 27.00 25.33 25.79 -1.68 11.95 10.20 11.46 0.36 162.89 143.10 150.50 1.95 65.00 62.00 62.31 -0.77
10B 10B -
- 200R
32603 16150 36527 23161 49295 13730 13734
2011 Div BR (%) (%) -
Change % Change -4.57 -0.46 Market cap 200-Day High 31,674.74 mn Div Yield (%) 200-Day Low 6.83 -
Last 60 days High Low 98.35 99.49 90.00 33.50 12.80 174.00 66.15
2010 Div BR (%) (%)
0.61 2.09 - 30B 18.55 20 2.00 7.5 5.27 10.01 - 15B 13.00 20 451.00 280 56.30 50 0.77 5 2.05 1.77 10.26 10 0.25 13.00 15 2.45 1.02 1.20 35.00 5 15B 2.60 1.41 3.02 27.00 20 10B 20.00 35 70.01 70 28.01 12.5 5.02 10 17.44 10 7.00 10 20B 0.42 0.01 3.50 10 43.02 20 3.05 10 5.00 8 2.00 5.80 20 5B 10.00 13.15 0.50 0.75 0.67 0.25 5 3.60 16.81 15 100R 0.25 14.50 20SD 22.30 15 57.20 25 45R 1.86 12.30 10.20 10 10B 13.50 30 0.40 0.31 9.25 25SD 37.01 40 5.00 0.28 53.00 25 3.63 10 4.32 - 100R 38.00 60 2.50 5 1.22 154.00 75 18.50 45 35.77 50 35.05 25 100.51 80 20B 44.10 50 900B 2.56 56.25 35 -
Close 980.77 Listed cap 3,904.20 mn Payout (%) 44.54
Volume
38,525.22
MA (10-day)
6.62
Total Equity (Rs in mn)
18,469.71
MA (100-day)
9.42
Revenue (Rs in mn)
11,737.86
MA (200-day)
10.12
Interest Expense
2,424.42
1st Support
4.95
Profit after Taxation
60.53
2nd Support
4.57
EPS 09 (Rs)
0.003
1st Resistance
6.03
Book value / share (Rs)
37.85
2nd Resistance
6.73
PE 10 E (x)
Pivot
5.65
PBV (x)
0.14
ANL closed down -1.26 at 5.39. Volume was 47 per cent above average and Bollinger Bands were 32 per cent wider than normal. The company's loss after taxation stood at Rs1.395 billion which translates into a Loss Per Share of Rs3.13 for the year ended CY10. ANL is currently 46.7 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume out of ANL (mildly bearish). Trend forecasting oscillators are currently bearish on ANL. Momentum oscillator is currently indicating that ANL is currently in an oversold condition.
2011 Div BR (%) (%)
Change % Change 15.84 1.64 Market cap 200-Day High 129,096.71 mn Div Yield (%) 200-Day Low 2.79 -
Last 60 days High Low
5301 1.45 454936 4.24 27220 23.28 9148 2.98 14089668 11.81 51252 18.41 228811 23.27 5080 686.07 8302 68.09 6005 2.20 65076 3.40 192334 2.95 5064 16.09 67308 1.43 41827 18.69 5250 4.00 359216 1.87 5200 4.00 23123 49.05 12905 5.00 25510 2.20 176371 6.40 21486 33.69 30767 28.74 96001 102.24 11395 53.65 49050 9.23 5150 21.58 250881 11.68 274180 2.10 11516 1.50 2232542 5.20 88916 54.40 9788 6.00 38653 8.50 25002 3.00 21154 9.35 6025 17.80 37055 1.79 22136 1.90 21200 3.75 11738 1.72 65071 5.58 6734 19.70 12348 1.30 111184 17.95 7632680 29.50 11640752 67.50 5797 3.45 1527037 21.21 64490 15.49 39754 16.90 131730 1.74 5500 1.00 8868 14.00 258931 44.40 52734 11.50 5354 1.88 6666 76.43 326017 9.35 7420 7.40 6282 45.15 38986 5.01 9000 2.35 16745 227.00 15946 26.29 46674 42.00 17697 44.10 83402 122.70 368957 59.90 7554 4.80 68835 87.90
Total Assets (Rs in mn)
Nishat Chunian Power Limited
Performance of SR Personal Goods Index High Low 986.95 953.66 Total cos Defaulter cos 211 73 P/BV (x) ROE (%) 0.52 8.64
17.26
Change % Change -78.62 -8.73 Market cap 200-Day High 4,386.12 mn Div Yield (%) 200-Day Low 3.96 -
PERSONAL GOODS Open 963.42 Turnover 41,777,627 P/E (x) 5.98
Fundamental Highlights As on Dec 31, 2009
Technical Analysis RSI (14-day)
Performance of SR Household Goods Index
Change % Change -27.33 -1.73 Market cap 200-Day High 31,388.68 mn Div Yield (%) 200-Day Low 16.99 -
Last 60 days High Low
-
Change % Change -1.95 -0.17 Market cap 200-Day High 42,679.60 mn Div Yield (%) 200-Day Low 5.21 -
PHARMA AND BIO TECH
Close 1,553.65 Listed cap 1,336.62 mn Payout (%) 131.49
40 15
Performance of SR Automobile and Parts Index
Performance of SR Pharma and Bio Tech Index
High Low 1,593.60 1,537.44 Total cos Defaulter cos 11 1 P/BV (x) ROE (%) 2.94 38.02
2010 Div BR (%) (%)
AUTOMOBILE AND PARTS
INDUSTRIAL ENGINEERING
Paid up Cap(mn)
AL-Khair Gadoon AL-Ghazi Tractor Bolan Casting Dewan Auto Engineering Ghandhara Ind KSB Pumps XD Millat Tractors
Low
Close 984.31 Listed cap 3,043.31 mn Payout (%) 15.55
PE
Performance of SR Industrial Engineering Index Open 1,580.97 Turnover 241,362 P/E (x) 7.74 Company
High Low 1,010.72 967.35 Total cos Defaulter cos 13 2 P/BV (x) ROE (%) 1.22 43.91
56.60 49.00 49.30 1.90 1.40 1.89 54.50 52.25 54.07 13.94 10.70 13.93 31.95 27.51 28.89 113.85 109.01 110.00
SilkBank Limited
Change % Change -18.57 -2.63 Market cap 200-Day High 11,627.72 mn Div Yield (%) 200-Day Low 2.19 -
6.37 8.50
2011 Div BR (%) (%)
- 20.00 25B 15.00 20B 15.00
Close 687.18 Listed cap 3,242.17 mn Payout (%) 11.08
1092 1321
Change % Change 5.32 0.51 Market cap 200-Day High 9,822.51 mn Div Yield (%) 200-Day Low 9.54 -
Last 60 days High Low
High Low 723.02 677.39 Total cos Defaulter cos 4 2 P/BV (x) ROE (%) 1.29 25.53
Paid up Cap(mn)
2011 Div BR (%) (%)
INDUSTRIAL METALS AND MINING
Paid up Cap(mn)
Company Pak Int Cont. Terminal PNSC
Change % Change -14.21 -1.34 Market cap 200-Day High 2,893.37 mn Div Yield (%) 200-Day Low 4.78 -
Performance of SR Industrial Metals and Mining Index Open 1,051.85 Turnover 892,312 P/E (x) 3.24
Open 705.76 Turnover 58,015 P/E (x) 5.07
Company
CHEMICALS
Paid up Cap(mn)
11,716.35 11,796.78 11,519.32 h108.01
Performance of SR Industrial Transportation Index
Close Change % Change 1,484.67 37.17 2.57 Listed cap Market cap 200-Day High 65,194.15 mn 1,099,571.05 mn Payout (%) Div Yield (%) 200-Day Low 55.94 5.57 -
Performance of SR Chemicals Index
Company
Current High Low Change
8,397.81 8,452.07 8,282.01 h75.03
Alert ! Unusual Movements
INDUSTRIAL TRANSPORTATION
Performance of SR Oil and Gas Index Open 1,447.50 Turnover 27,698,374 P/E (x) 10.05
KSE 30 Index
78.59 85.00 68.00 24.50 8.10 134.00 58.05
2010 Div BR (%) (%) 50 40 25 100 30
2011 Div BR (%) (%)
20B 12.50 15B 10B -
-
Fundamental Highlights As on Jun 30, 2010
Technical Analysis RSI (14-day)
67.34
Total Assets (Rs in mn)
22,703.03
MA (10-day)
15.45
Total Equity (Rs in mn)
3,649.33
MA (100-day)
15.82
Revenue (Rs in mn)
MA (200-day)
13.60
Interest Expense
1st Support
16.00
Loss after Taxation
2nd Support
15.61
EPS 10 (Rs)
1st Resistance
16.69
0.00 0.00 (7.76) (0.021)
Book value / share (Rs)
9.93
2nd Resistance
16.99
PE 11 E (x)
3.28
Pivot
16.30
PBV (x)
1.64
NCPL closed up 1.16 at 16.33. Volume was 217 per cent above average (trending) and Bollinger Bands were 30 per cent narrower than normal. The company's profit after taxation stood at Rs914.231 million which translates into an Earning Per Share of Rs2.489 for the half year of current fiscal year (1HFY11). NCPL is currently 20.1 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 moderate flows of volume into NCPL (mildly bullish). Trend forecasting oscillators are currently bullish on NCPL.
Descon Oxychem Limited
Fundamental Highlights As on Jun 30, 2010
Technical Analysis RSI (14-day)
44.69
Total Assets (Rs in mn)
3,117.65
MA (10-day)
8.12
Total Equity (Rs in mn)
555.18
MA (100-day)
8.03
Revenue (Rs in mn)
MA (200-day)
6.52
Interest Expense
1st Support
7.86
Loss after Taxation
2nd Support
7.77
EPS 10 (Rs)
1st Resistance
8.14
Book value / share (Rs)
2nd Resistance
8.33
PE 11 E (x)
Pivot
8.05
PBV (x)
709.67 288.07 (289.41) (2.837) 5.44 11.79 1.47
DOL closed down -0.18 at 8.02. Volume was 44 per cent below average and Bollinger Bands were 17 per cent narrower than normal. The company's profit after taxation stood at Rs52.037 million which translates into an Earning Per Share of Rs0.51 for the nine months of fiscal year (9MFY11). DOL is currently 22.9 per cent above its 200-day moving average and is displaying a downward trend. Volatility is relatively normal when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of DOL at a relatively equal pace. Trend forecasting oscillators are currently bearish on DOL.
BOOK CLOSURES Company
From
To
Ali Asghar Textile Mills # (TFC) Faysal Bank Ltd Fecto Sugar Mills # Habib Insurance # Atlas Engineering Ltd # Pakistan Paper Products # Crescent & Sugar Mills # Jubilee Spng & Weaving Mills # Crescent Textile Mills # Metropolitan Steel Corp # Flying Cement # United Distributors # Capital Assets Leasing Biafo Industries (TFC) Orix Leasing Pak Arif Habib Investment # Rafhan Maize Products Packages Ltd # IGI Insurance (TFC) Engro Fertilizer JS Value Fund JS Growth Fund MCB Bank Ittehad Chemicals # OGDC
02-May 02-May 02-May 04-May 04-May 05-May 06-May 07-May 07-May 07-May 09-May 10-May 10-May 11-May 12-May 14-May 14-May 16-May 16-May 17-May 24-May 24-May 02-Jun 04-Jun 14-Jun
09-May 12-May 08-May 10-May 10-May 14-May 14-May 16-May 16-May 13-May 16-May 16-May 16-May 17-May 25-May 21-May 21-May 20-May 24-May 30-May 30-May 30-May 09-Jun 10-Jun 21-Jun
D/B/R 5 22(III) 350(I) 10(I) 5(I) 7.5(I) 30(I) 15(II)
INDICATIONS # Extraordinary General Meeting
Spot AGM/Date -
09-May 09-Aug 10-May 10-May 14-May 14-May 16-May 16-May 13-May 17-May 16-May 21-May 20-May 10-Jun -
7
Monday, May 2, 2011 Atlas Insurance 443 4.15 Century Insurance XD 457 4.72 EFU General Ins. XD 1250 12.03 Habib InsuranceXDXB 450 5.48 IGI Insurance 970 5.94 New Jub InsuranceXDXB 989 10.08 Pak Reinsurance XD 3000 8.25 Premier Insurance XD 303 4.21 Reliance Insurance XB 284 3.72 Silver Star Insurance XB 291 3.50
FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 981.89 Turnover 35,125,601 P/E (x) 5.36 Paid up Cap(mn)
Company
High Low 1,037.14 970.56 Total cos Defaulter cos 5 P/BV (x) ROE (%) 0.69 12.84
PE
Open
High
Low
Close Chg
Pak Datacom 78 40.37 Pakistan Telecomm Co A 37740 13.80 Telecard 3000 2.73 WorldCall Tele 8606 Wateen Telecom Ltd 6175 -
45.67 16.78 1.68 2.42 2.92
46.50 17.83 1.72 2.50 3.09
41.98 16.66 1.53 2.21 2.81
41.98 16.83 1.61 2.27 2.85
Close 978.22 Listed cap 50,077.79 mn Payout (%) 62.56
Volume
-3.69 0.05 -0.07 -0.15 -0.07
15225 31316786 882842 2910748 579594
Change % Change -3.67 -0.37 Market cap 200-Day High 68,041.88 mn Div Yield (%) 200-Day Low 11.67 -
Last 60 days High Low
2010 Div BR (%) (%)
79.90 19.20 2.35 2.89 3.73
80 17.5 1 -
41.98 16.05 1.53 2.15 2.65
2011 Div BR (%) (%)
- 15.00 -
28.00 8.85 32.65 11.55 70.25 53.30 15.42 8.70 6.61 6.01
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 Sitara Energy Ltd Southern Electric Tri-star Power XD
198 11572 1560 7932 1695 126 8803 3673 3541 191 1367 150
PE
Open
High
Low
7.60 5.11 2.38 5.56 3.28 2.41 6.13 -
0.62 37.52 1.21 2.56 17.56 3.01 43.05 15.17 16.48 19.56 1.47 1.08
0.70 38.50 1.29 2.68 17.51 3.28 43.99 16.60 17.33 22.20 1.60 1.35
0.55 37.30 1.07 2.48 15.41 3.00 42.22 15.01 16.16 19.00 1.35 1.03
Close 1,369.64 Listed cap 95,369.29 mn Payout (%) 104.13
Volume
Last 60 days High Low
0.55 37.87 1.11 2.51 16.90 3.04 43.32 16.33 16.87 22.14 1.36 1.19
22954 4789452 638291 2153737 27812 43208 785800 7343544 6482325 841134 570998 150319
0.87 40.75 1.75 2.99 19.10 4.95 44.99 17.00 18.00 22.20 2.24 1.37
-0.07 0.35 -0.10 -0.05 -0.66 0.03 0.27 1.16 0.39 2.58 -0.11 0.11
0.50 35.90 1.07 2.31 15.41 2.45 40.26 14.05 14.85 15.35 1.35 0.31
2010 Div BR (%) (%) 50 25 50 20 -
American Life EFU Life Assurance XD New Jub Life Insurance
Paid up Cap(mn)
Company Sui North Gas Sui South Gas
Close 1,252.68 Listed cap 12,202.80 mn Payout (%) 66.79
PE
Open
High
Low
Close Chg
Volume
Last 60 days High Low
19.11 22.98
19.23 23.00
18.06 20.90
18.60 -0.51 20.94 -2.04
266473 210017
27.35 27.90
18.06 20.90
2010 Div BR (%) (%) 20 15
-
Paid up Cap(mn)
Company
Allied Bank Ltd. XDXB 8603 Askari Bank XB 7070 Bank Alfalah 13492 Bank AL-Habib 8786 Bank Of Khyber 5004 Bank Of Punjab 5288 Bankislami Pak 5280 Faysal Bank 7327 Habib Bank Ltd 11021 Habib Metropolitan Bank XB 10478 JS Bank Ltd 8150 KASB Bank Ltd 9509 MCB Bank Ltd 8362 Meezan Bank XB 8030 Mybank Ltd 5304 National BankXDXB 16818 Network Mic Bank 300 NIB Bank 40437 Samba Bank 14335 Silkbank Ltd 26716 Soneri Bank 6023 Stand Chart Bank 38716 Summit Bank Ltd 7251 United Bank Ltd 12242
PE
Open
6.20 61.45 5.38 11.96 5.31 10.83 6.25 29.81 2.31 4.26 6.00 10.59 3.92 7.53 10.12 7.62 124.75 5.40 19.10 51.00 2.55 1.35 8.37 204.28 7.97 17.99 2.35 4.16 54.24 3.30 1.96 25.88 2.05 16.94 2.24 3.20 6.53 9.47 9.07 3.00 7.49 63.85
High
Low
Close Chg
-
62.98 59.30 62.87 1.42 12.06 11.65 11.83 -0.13 10.99 10.05 10.09 -0.74 29.80 29.20 29.49 -0.32 5.25 4.16 5.17 0.91 6.10 4.96 5.01 -0.99 4.09 3.31 3.92 0.00 10.37 9.73 9.94 -0.18 125.10 121.80 122.06 -2.69 19.25 18.30 18.80 -0.30 2.78 2.50 2.55 0.00 1.45 1.26 1.40 0.05 208.05 202.01 207.05 2.77 19.39 17.81 18.80 0.81 2.60 2.26 2.30 -0.05 54.50 52.75 52.91 -1.33 3.35 1.90 1.99 -1.31 2.01 1.69 1.98 0.02 2.15 1.91 2.07 0.02 2.99 2.15 2.71 0.47 6.65 6.21 6.40 -0.13 9.75 8.60 9.00 -0.07 3.58 3.00 3.01 0.01 64.89 63.26 63.76 -0.09
221089 1000842 7148129 845366 653898 8108101 520773 230313 703456 110306 331924 246924 2136288 1244547 343375 6977627 57120 16482544 1156552 45693511 470737 385628 1009645 753667
Change % Change -1.80 -0.16 Market cap 200-Day High 690,136.51 mn Div Yield (%) 200-Day Low 5.40 -
Last 60 days High Low
Volume
73.50 17.59 11.55 37.38 5.25 8.68 4.18 14.70 131.00 26.50 3.16 1.80 231.25 19.70 3.22 81.78 3.49 2.94 2.20 2.99 7.50 9.90 3.79 67.50
57.00 11.65 8.75 26.95 3.30 4.96 3.06 9.73 104.16 18.30 2.35 1.20 192.20 16.26 1.70 52.75 0.76 1.69 1.50 2.02 5.00 6.28 2.36 56.70
2010 Div BR (%) (%)
Paid up Cap(mn)
Company
Adamjee Insurance XD
1237
Close 729.96 Listed cap 11,111.34 mn Payout (%) 79.54
PE
Open
High
Low
Close Chg
Volume
Last 60 days High Low
70.16
71.30
68.10
68.98 -1.18
606460
92.50
67.00
2010 Div BR (%) (%) 25
Low
Close Chg
Volume
Last 60 days High Low
17.26 56.25 53.73
16.01 51.00 45.10
17.26 1.21 54.10 0.59 53.00 6.74
10804 71589 172542
18.50 65.49 53.73
Open
High
Low
225 1.02 360 5.76 450 15.78 3750 3.09 107 2.05 150 2.00 250 441 First Credit & Invest Bank Ltd 650 First National Equity 575 Grays Leasing 215 IGI Investment Bank 2121 8.95 Invest and Fin Sec 600 20.27 Invest Bank 2849 Ist Cap Securities 3166 Ist Dawood Bank 626 0.75 Jah Siddiq Co 7633 JOV and CO 508 JS Global Cap 500 5.49 JS Investment 1000 43.67 KASB Securities 1000 Orix Leasing 821 3.34 Pervez Ahmed Sec 775 3.35 Saudi Pak Leasing 452 Stand Chart Leasing 978 3.59
0.49 22.63 17.23 24.09 1.50 1.49 1.54 1.82 5.00 3.98 3.00 1.93 7.21 0.40 2.90 1.37 6.78 2.90 21.10 5.45 3.50 5.25 1.68 0.67 2.55
0.55 23.49 17.10 24.25 2.95 1.70 1.99 2.25 6.00 5.35 4.00 2.04 7.97 0.50 3.19 1.68 7.50 3.09 21.25 5.70 3.88 5.85 1.82 0.70 3.20
0.41 21.00 14.95 23.05 1.99 1.21 1.25 1.82 4.30 4.01 3.00 1.65 7.02 0.30 2.73 1.30 5.90 2.61 19.10 5.20 3.32 5.06 1.54 0.60 2.50
-
Paid up Cap(mn)
Company
2011 Div BR (%) (%)
-
High Low 305.48 259.14 Total cos Defaulter cos 41 6 P/BV (x) ROE (%) 0.17 0.91
Open 1,538.94 Turnover 13,972,744 P/E (x) 21.39
20R -
Change % Change -8.50 -1.15 Market cap 200-Day High 45,561.53 mn Div Yield (%) 200-Day Low 7.43 -
7.40
Symbols AGIC CSUML MTIL STCL CICL UNIC ARPAK ARM STML HINO EXIDE PIL FFLM ASTM PCAL NOPK GRAYS PRET AASM SLCL GFIL SGPL FTSM BILF MFTM EMCO ACCM ALTN TRPOL BUXL FASM RCML TSMF SIBL AHTM BROT GATI BFMOD QUAT SANE ICCT SZTM KOHTM ELCM MQTM ADOS CLOV HUSS COTT BAPL SHDT SANSM MIRKS SHTM ILTM TSML PECO MUKT PAKMI ADAMS CSIL SKFL ANSS WAZIR BWCL DATM IDYM MFFL FZTM FNBM SHCM QUET SKRS POAF GLPL FRSM PNGRS SIEM COLG TRSM WYETH FPRM ULEVER RMPL PIAB APOT MEHT ZAHT EWLA TSBL IDSM NESTLE BHAT SHJS AWTX FZCM REST SFL OTSU UVIC UPFL JOPP GLAT SHNI HUSI SCL ISIL SASML ALQT FECS DREL BAFS POML TICL GVGL LEUL PKGI FRCL PSEL AGSML PMRS DADX DIIL PHDL MSCL CLCPS LATM NATM OLTM YOUW KHTC FIBLM FIMM ATEL
14.02 51.00 39.05
2010 Div BR (%) (%) 50 15
2011 Div BR (%) (%)
-
-
-
Close Chg 0.49 22.56 14.99 23.10 2.30 1.26 1.31 2.00 4.50 4.30 3.00 1.70 7.50 0.45 2.80 1.68 6.05 2.69 19.10 5.24 3.35 5.51 1.61 0.60 2.55
0.00 -0.07 -2.24 -0.99 0.80 -0.23 -0.23 0.18 -0.50 0.32 0.00 -0.23 0.29 0.05 -0.10 0.31 -0.73 -0.21 -2.00 -0.21 -0.15 0.26 -0.07 -0.07 0.00
Close 264.91 Listed cap 30,336.44 mn Payout (%) 99.56
Volume 70993 52117 265174 3773858 78953 14071 46524 21001 48505 5087 7462 105792 162922 480270 196208 212115 12453167 378704 8650 287095 137503 116079 714952 20011 43614
Change % Change -18.39 -6.49 Market cap 200-Day High 13,048.12 mn Div Yield (%) 200-Day Low 5.21 -
Last 60 days High Low
2010 Div BR (%) (%)
0.93 24.97 25.90 26.30 2.95 2.10 2.57 3.35 6.00 7.19 4.00 2.75 8.28 0.88 3.74 2.00 11.95 4.00 28.01 6.92 4.97 6.50 2.49 0.95 3.20
30 11.5 10 50 -
0.34 18.99 14.95 18.75 1.50 1.10 1.06 1.55 2.30 2.60 1.34 1.65 5.15 0.30 2.73 1.24 5.90 2.58 19.10 5.00 3.31 5.00 1.21 0.47 1.67
2011 Div BR (%) (%)
20B 20B 10B -
-
-
EQUITY INVESTMENT INSTRUMENTS
NON LIFE INSURANCE High Low 748.11 717.16 Total cos Defaulter cos 34 22 P/BV (x) ROE (%) 0.56 5.20
UPTO 5000 VOLUME
-
Performance of SR Equity Investment Instruments Index
Performance of SR Non Life Insurance Index Open 738.45 Turnover 5,497,392 P/E (x) 10.71
High
16.05 53.51 46.26
PE
2011 Div BR (%) (%)
40 10B - 10B 20 20B - 20B 65 10B - 20B - 33R -105.16R 115 10B 30.00 - 15B 75 25B -154.79R -63.46R - 311R 6 50 -
40 20B 10 12.5 25 12.5B 30 55B 10.00 20 25B 30 25 - 12.5B - 15B -
Change % Change 42.77 5.73 Market cap 200-Day High 8,875.32 mn Div Yield (%) 200-Day Low 4.18 -
Open
AMZ Ventures Arif Habib Investments Arif Habib Limited Arif Habib Corp Cap Assets Leasing Dawood Cap Mangt. XB Dawood Equities Escorts Bank
Performance of SR Banks Index High Low Close 1,170.03 1,139.87 1,156.96 Total cos Defaulter cos Listed cap 27 - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.05 13.94 40.49
Close 789.08 Listed cap 2,290.72 mn Payout (%) 355.53
PE
Paid up Cap(mn)
Company
BANKS Open 1,158.76 Turnover 95,822,717 P/E (x) 7.50
26.60 8.11 31.25 11.20 65.10 52.00 13.80 8.01 5.76 5.00
FINANCIAL SERVICES
2011 Div BR (%) (%)
25B
High Low 806.43 719.32 Total cos Defaulter cos 4 P/BV (x) ROE (%) 3.27 3.85
Open 283.30 Turnover 15,887,644 P/E (x) 11.21
Change % Change -80.30 -6.02 Market cap 200-Day High 27,781.35 mn Div Yield (%) 200-Day Low 8.19 -
5491 13.29 8390 4.73
34697 42.90 8878 10.85 42333 42.99 24460 16.05 70658 103.00 9345 74.90 4600065 20.80 31600 13.27 5566 8.25 44859 7.51
Performance of SR Financial Services Index
-
GAS WATER AND MULTIUTILITIES High Low 1,337.45 1,250.14 Total cos Defaulter cos 2 P/BV (x) ROE (%) 0.93 11.41
-0.76 -0.36 -0.41 -0.05 1.54 4.07 -0.98 -0.28 -0.51 -0.86
500 6.64 850 7.60 627 14.25
2011 Div BR (%) (%)
- 25.00 7.8R - 10.00 - 30.00 -
Performance of SR Gas Water and Multiutilities Index Open 1,332.98 Turnover 476,490 P/E (x) 8.16
Paid up Cap(mn)
Company
Change % Change 15.41 1.14 Market cap 200-Day High 106,713.87 mn Div Yield (%) 200-Day Low 7.49 -
Close Chg
27.24 8.49 32.24 11.50 71.79 57.37 14.44 8.42 6.10 5.15
LIFE INSURANCE Open 746.31 Turnover 255,135 P/E (x) 5.51
ELECTRICITY High Low 1,384.16 1,342.62 Total cos Defaulter cos 15 1 P/BV (x) ROE (%) 1.30 9.35
27.20 8.11 31.25 11.50 70.00 52.00 14.25 8.01 5.76 5.00
Performance of SR Life Insurance Index
-
Performance of SR Electricity Index Open 1,354.23 Turnover 23,855,076 P/E (x) 13.91
28.35 9.35 33.25 11.80 72.55 58.50 15.47 8.95 6.25 6.01
-
High Low 1,555.28 1,506.19 Total cos Defaulter cos 52 11 P/BV (x) ROE (%) 0.47 2.21
PE
Open
High
Low
AL-Meezan Mutual Fund 1375 4.51 AL-Noor Modaraba 210 2.32 Atlas Fund of Funds 525 1.74 B R R Guardian Mod. 780 1.99 Constellation Modaraba 65 1.69 Crescent St Modaraba 200 4.00 Elite Cap Modaraba 113 4.15 Equity Modaraba 524 0.96 First Dawood Mutual F. 581 1.22 Golden Arrow 760 2.36 H B L Modaraba 397 3.58 Habib Modaraba 1008 4.07 JS Growth Fund 3180 2.42 JS Value Fund 1186 0.67 KASB Modaraba 283 1.61 Meezan Balanced Fund 1200 2.67 Mod Al-Mali 184 17.86 NAMCO Balanced Fund 1000 3.63 PICIC Energy Fund 1000 2.24 PICIC Growth Fund 2835 2.75 PICIC Inv Fund 2841 2.31 Prud Modaraba 1st 872 1.55 Punjab Modaraba 340 Stand Chart Modaraba 454 5.46 U D L Modaraba 264 2.26
10.39 3.40 6.69 1.55 1.48 0.55 3.00 1.52 2.00 3.55 8.00 7.86 7.17 6.10 2.10 9.25 1.10 4.60 7.40 13.00 5.90 0.93 1.38 9.82 6.70
11.20 3.65 6.79 2.20 1.99 0.58 3.20 1.95 2.10 3.65 8.00 8.00 7.25 6.68 2.85 9.45 1.34 5.25 7.80 13.40 5.95 1.10 1.99 10.15 7.00
10.20 3.10 6.26 1.67 0.90 0.48 2.40 1.55 1.91 3.25 7.30 7.35 6.80 5.90 1.80 9.15 1.06 4.60 7.16 12.95 5.60 0.80 1.00 9.54 6.60
Close 1,532.34 Listed cap 29,771.58 mn Payout (%) 104.74
Change % Change -6.60 -0.43 Market cap 200-Day High 19,671.96 mn Div Yield (%) 200-Day Low 7.61 -
Close Chg
Volume
Last 60 days High Low
2010 Div BR (%) (%)
10.50 3.65 6.55 1.91 1.25 0.56 2.99 1.57 2.04 3.56 7.31 7.85 7.05 6.35 2.50 9.30 1.25 4.75 7.58 13.37 5.85 0.85 1.15 9.88 6.60
1319496 24795 1024501 1609400 7609 72461 6981 22729 1006877 152169 18788 30729 2096590 925941 8651 1233318 6578 3223792 436395 266656 327213 68294 40546 17786 7593
11.50 3.65 6.97 2.20 1.99 0.75 3.40 2.38 2.57 3.95 8.48 8.44 7.45 6.68 3.94 10.24 1.84 5.28 8.83 16.49 7.95 1.10 1.99 10.63 7.25
18.5 5 2.2 0 1.2 5 17 11 21 12.5 10 2.8 15.5 15 10 20 10 3 1 17 12.5
0.11 0.25 -0.14 0.36 -0.23 0.01 -0.01 0.05 0.04 0.01 -0.69 -0.01 -0.12 0.25 0.40 0.05 0.15 0.15 0.18 0.37 -0.05 -0.08 -0.23 0.06 -0.10
8.95 2.85 4.52 1.12 0.90 0.39 2.12 1.52 1.79 2.92 6.81 6.97 4.76 4.20 1.50 8.10 1.00 3.00 6.74 12.00 5.10 0.80 0.50 9.50 5.67
2011 Div BR (%) (%)
- 5.00 - 5.00 - 10.00 - 12.50 - 7.50 - 7.50
-
Open
High
10.32 2.52 0.74 6.95 67.27 5.50 13.97 18.90 23.00 102.92 194.00 11.24 1.44 1.75 48.52 22.81 45.06 31.00 25.50 1.69 5.48 0.75 0.95 0.71 0.97 2.15 0.79 8.50 0.76 8.50 38.95 29.75 1.32 2.15 15.00 0.45 55.00 4.75 16.25 2.80 1.21 6.40 1.48 4.50 10.00 7.99 61.22 8.95 1.72 9.04 13.50 12.19 41.86 0.44 204.25 52.00 97.83 0.59 0.92 13.00 3.73 2.98 7.03 6.20 13.66 0.40 305.28 72.00 315.45 5.00 15.00 67.00 1.85 8.75 54.40 19.25 3.51 1075.00 681.43 2.00 951.77 8.15 5087.78 2689.62 4.42 5.75 58.97 7.20 1.80 1.48 8.56 3583.85 250.00 64.20 90.00 57.00 7.50 115.76 32.21 2.25 1300.98 7.93 9.05 13.55 5.87 84.90 82.13 7.00 11.70 38.00 575.00 55.10 45.00 59.20 22.50 2.71 5.98 2.60 149.63 5.90 38.76 16.89 8.02 33.00 13.61 1.42 6.11 19.96 1.00 1.10 30.40 1.60 62.75 36.20
10.50 3.07 0.74 6.79 72.21 6.10 15.97 18.90 23.00 111.50 206.99 12.24 1.60 2.25 52.50 23.70 46.10 32.55 28.00 2.55 6.75 0.84 1.44 1.00 0.97 2.20 0.79 9.50 1.10 8.00 42.75 29.75 1.46 3.14 15.50 0.79 58.80 4.75 18.50 2.75 1.30 7.39 1.50 6.50 10.00 8.65 67.42 9.94 1.84 9.45 14.50 12.70 43.70 0.44 236.43 54.49 105.90 0.45 1.20 13.90 4.68 2.98 7.00 6.99 14.66 0.40 299.00 73.99 330.00 5.94 16.00 70.00 2.21 8.75 54.40 19.25 4.29 1120.00 725.00 2.20 960.00 9.15 5200.00 2889.89 4.42 5.75 61.90 7.50 1.90 1.48 9.00 3635.00 249.52 66.88 94.50 59.49 8.50 117.00 33.00 2.39 1366.00 8.93 9.50 14.49 5.87 84.90 82.13 8.00 11.70 38.50 601.00 55.10 45.00 60.00 22.00 2.71 6.94 2.60 155.00 6.85 40.69 17.71 8.02 34.65 13.61 2.42 7.00 19.96 1.98 1.32 30.50 1.60 65.87 36.25
Low
Close
9.65 2.50 0.45 5.65 65.00 5.22 14.97 17.01 19.83 97.00 193.01 8.28 1.31 2.00 50.00 22.02 41.80 31.00 25.50 1.50 5.48 0.61 0.90 0.71 0.75 1.80 0.25 8.50 0.23 7.07 38.95 25.55 1.02 1.55 15.00 0.30 52.50 4.65 17.00 2.35 1.10 6.40 1.48 5.50 9.00 7.40 61.02 8.50 1.65 8.50 12.99 12.00 41.00 0.26 204.25 51.99 100.99 0.31 0.88 13.00 3.73 2.50 7.00 6.20 13.80 0.23 280.00 72.00 289.00 4.50 14.11 67.00 1.85 7.75 51.68 19.00 3.50 1026.00 655.00 1.75 912.00 8.15 5000.00 2608.19 4.00 4.75 58.97 7.20 1.80 1.11 7.56 3360.01 237.50 61.00 90.00 55.00 7.50 115.76 31.36 2.00 1299.00 7.02 9.05 12.55 5.00 80.66 78.05 7.00 10.70 38.00 575.00 53.00 42.00 59.00 22.00 1.75 5.98 2.05 149.63 4.90 40.69 16.06 7.11 33.00 12.61 1.42 6.11 18.96 1.00 1.10 30.00 1.40 62.75 36.20
10.05 2.50 0.45 6.08 71.79 6.10 14.97 17.90 20.87 97.93 195.55 8.99 1.35 2.25 50.94 22.37 41.80 32.25 26.27 1.90 6.40 0.70 1.05 1.00 0.75 1.80 0.30 9.50 0.80 7.51 42.75 26.89 1.10 2.22 15.50 0.43 57.96 4.65 18.10 2.50 1.12 7.35 1.50 5.50 9.80 7.65 64.21 9.94 1.77 8.59 14.50 12.24 43.65 0.26 236.43 52.00 104.00 0.36 0.88 13.90 3.99 2.50 7.00 6.99 13.99 0.39 295.91 72.00 303.57 5.06 16.00 70.00 2.21 7.75 54.40 19.25 3.51 1059.29 725.00 2.00 912.00 8.15 5045.40 2724.80 4.42 5.75 58.97 7.20 1.80 1.48 8.56 3504.87 237.65 64.20 90.00 57.00 7.50 115.76 33.00 2.25 1359.37 7.93 9.05 13.55 5.87 84.90 82.13 7.00 11.70 38.00 575.00 55.10 40.00 59.00 22.00 2.71 5.98 2.60 149.63 5.90 38.76 16.89 8.02 33.00 13.61 1.42 6.11 19.96 1.00 1.10 30.00 1.60 62.75 36.25
Change
Vol
-0.27 -0.02 -0.29 -0.87 4.52 0.60 1.00 -1.00 -2.13 -4.99 1.55 -2.25 -0.09 0.50 2.42 -0.44 -3.26 1.25 0.77 0.21 0.92 -0.05 0.10 0.29 -0.22 -0.35 -0.49 1.00 0.04 -0.99 3.80 -2.86 -0.22 0.07 0.50 -0.02 2.96 -0.10 1.85 -0.30 -0.09 0.95 0.02 1.00 -0.20 -0.34 2.99 0.99 0.05 -0.45 1.00 0.05 1.79 -0.18 32.18 0.00 6.17 -0.23 -0.04 0.90 0.26 -0.48 -0.03 0.79 0.33 -0.01 -9.37 0.00 -11.88 0.06 1.00 3.00 0.36 -1.00 0.00 0.00 0.00 -15.71 43.57 0.00 -39.77 0.00 -42.38 35.18 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -78.98 -12.35 0.00 0.00 0.00 0.00 0.00 0.79 0.00 58.39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -5.00 -0.20 -0.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.40 0.00 0.00 0.05
4926 4878 4702 4610 4525 4211 4058 4040 3988 3754 3753 3685 3668 3500 3459 3410 3376 3179 3159 3135 3100 3002 2941 2714 2524 2510 2500 2500 2271 2249 2000 1806 1800 1787 1780 1754 1708 1700 1635 1630 1600 1523 1510 1501 1501 1440 1425 1421 1343 1341 1250 1210 1209 1173 1156 1055 1043 1014 1012 1010 1001 1000 1000 1000 943 808 802 652 616 609 603 512 500 500 497 461 444 347 339 310 274 274 271 253 213 200 200 200 200 200 193 164 156 138 133 109 100 100 100 85 59 50 50 28 27 22 20 20 20 17 11 10 10 10 10 10 10 7 6 5 5 2 2 2 1 1 1 1 1 1 1 1 1 0
BOARD MEETINGS
Pakistan Telecommunication Co Ltd
KSE 100 INDEX
Nishat Mills Ltd
Fauji Fertiliser Bin Qasim Ltd
Company
Date
Time
Dandot Cement Comp Ltd International Ind Ltd Honda Atlas Cars
04-May 10-May 16-May
3:30 5:00 11:00
TECHNICAL LEVELS Company Al-Abbas Cement
Technical Outlook Technical Analysis RSI (14-day)
Brokerage House
Leverage Position
62.26
Support 1
MA (5-day)
11,964.23
Support 2
11,884.30
MA (10-day)
11,871.83
Resistance 1
12,139.90
MA (100-day)
11,961.41
11,970.95
Resistance 2
12,222.25
Target Price
Recommendations
24.7
Buy
Arif Habib Ltd
23.91
Buy
AKD Securities Ltd
Positive
TFD Research
Arif Habib Ltd AKD Securities Ltd TFD Research
25.8
Brokerage House
Technical Outlook Technical Analysis
11,137.51
Pivot
Leverage Position
12,053.30
Dera Ghazi Khan Cement Co Ltd
Brokerage House
Target Price
Recommendations
Brokerage House
Buy
Arif Habib Ltd
28.72
Accumulate
AKD Securities Ltd
TFD Research
36.45
Positive
TFD Research
30.1
RSI (14-day) MA (10-day) MA (100-day)
43.03 24.31 27.06
MA (200-day)
26.77
Leverage Position MTS Shares `000 MTS Rs `000 MTS Rate
145 145.25
263.00 4,770.08 20.00
** NOI Rs (mn) 126.02 Free Float Rs (mn) 4,823.33 Target price for Dec-11 & **Net Open Interest in future market
Free Float Shares (mn) 200.80
DGKC closed down -0.81 at 24.02. Volume was 55 per cent below average (consolidating) and Bollinger Bands were 41 per cent narrower than normal. DGKC is currently 10.3 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of DGKC at a relatively equal pace. Trend forecasting oscillators are currently bearish on DGKC.
Technical Analysis
AKD Securities Ltd
45.52
Accumulate
TFD Research
44.25
Neutral
MTS Shares `000
MA (10-day) MA (100-day)
41.61 39.95
MTS Rs `000 MTS Rate
MA (200-day)
34.84 326.94
Free Float Shares (mn)
Brokerage House
136.99
MTS Rs `000
157.13 153.31
MTS Rate ** NOI Rs (mn)
630.61
Free Float Rs (mn)
MA (10-day) MA (100-day)
64.15 64.26
MTS Rs `000 MTS Rate
97.37 13,855.65
MA (200-day)
56.96 Free Float Shares (mn) 175.80
Brokerage House Arif Habib Ltd
Reduce
AKD Securities Ltd
Neutral
TFD Research
7,778.75 N/A
54.25
55.25
53.25
22.60
23.55
24.00
23.30
14.40
13.80
16.15
17.30
15.55
Adamjee Insurance
39.82
68.15
67.35
69.85
70.70
69.05
Askari Bank
31.77
11.70
11.55
12.00
12.20
11.90
Azgard Nine
17.32
5.00
4.60
6.05
6.75
Attock Petroleum
67.45
378.45
371.55
389.85 394.35 382.95
Accumulate
Attock Refinery
58.42
126.00
124.85
128.80 130.55 127.70
Positive
Bank Al-Falah
44.31
9.90
9.75
BankIslami Pak
54.06
Bank.Of.Punjab
16.80
Dewan Cement
53.87
1.60
1.45
1.75
1.85
1.65
D.G.K.Cement
43.02
23.80
23.60
24.35
24.65
24.10
Dewan Salman
41.47
2.45
2.40
2.60
2.70
Dost Steels Ltd
52.26
2.00
1.90
2.15
2.20
2.05
EFU General Insurance 37.61
31.50
30.80
33.00
33.80
32.30
EFU Life Assurance
34.71
53.10
52.05
55.05
56.00
54.05
Engro Corp
45.07
195.55
193.60
Faysal Bank
27.14
Fauji Cement
40.51
4.00
3.95
Fauji Fert Bin
61.06
42.10
41.85
Fauji Fertilizer
61.80
140.35
138.85
144.35 146.75 142.80
Habib Bank Ltd
52.66
121.40
120.75
123.10 124.15 122.45
Hub Power
54.23
37.65
37.40
ICI Pakistan
44.26
154.95
153.05
158.15 159.40 156.25
Indus Motors
44.28
219.65
219.35
220.65 221.35 220.35
J.O.V.and CO
34.48
2.55
2.45
2.85
3.05
2.75
Japan Power
28.36
1.05
1.00
1.20
1.30
1.15
JS Bank Ltd
41.91
2.50
2.45
2.60
2.65
2.55
Jah Siddiq Co
44.21
5.75
5.40
6.50
7.00
6.20
67.50 3,259.30 16.14
** NOI Rs (mn) Free Float Rs (mn)
52.66 11,068.36
Technical Analysis RSI (14-day) MA (10-day) MA (100-day) MA (200-day)
61.78 140.52 134.75 121.42 Free Float Shares (mn) 466.49
Leverage Position MTS Shares `000 MTS Rs `000 MTS Rate ** NOI Rs (mn) Free Float Rs (mn)
Target Price 11.6 11 14.01
Recommendations Hold Accumulate Positive
Technical Outlook
Technical Outlook
91,854.07
51.25
22.85
18.67
Bank Al-Falah Ltd
Hold
129.4
Free Float Shares (mn)
2,522.83 15.99
Recommendations
TFD Research
MA (100-day) MA (200-day)
MTS Shares `000
144
Neutral
MA (10-day)
52.25
40.65
Arif Habib Limited
Leverage Position
43.53
Target Price
120.7
79.50
62.75
42.82
Arif Habib Corp
Target price for Dec-11 & **Net Open Interest in future market
AKD Securities Ltd
MTS Shares `000
63.35
Attock Cement
NML closed down -2.02 at 62.96. Volume was 61 per cent above average and Bollinger Bands were 45 per cent narrower than normal. NML is currently 10.5 per cent above its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of NML at a relatively equal pace. Trend forecasting oscillators are currently bearish on NML.
Arif Habib Ltd
66.58
63.10
Target price for Dec-11 & **Net Open Interest in future market
Accumulate
Leverage Position
62.15
FFBL closed up 0.59 at 42.38. Volume was 27 per cent below average and Bollinger Bands were 50 per cent narrower than normal. FFBL is currently 21.6 per cent above its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into FFBL (mildly bullish). Trend forecasting oscillators are currently bullish on FFBL.
Hold
RSI (14-day)
Technical Analysis RSI (14-day)
80.50
** NOI Rs (mn) Free Float Rs (mn)
62.50
Recommendations
71.45
82.49 66,199.22
Technical Analysis RSI (14-day) MA (10-day) MA (100-day) MA (200-day)
44.31 10.55 10.54 9.77 Free Float Shares (mn) 674.58
1st 2nd Pivot Resistance 3.05 3.15 2.80
58.65
Technical Outlook
Leverage Position
61.06
Target Price
78.6
Fauji Fertiliser Co
Recommendations
143.2
Hold
RSI (14-day)
Technical Outlook
Technical Outlook Technical Analysis
Target Price
42.2
Technical Analysis
Oil & Gas Development Co Ltd
AKD Securities Ltd
Arif Habib Ltd
Recommendations
Technical Outlook
RSI (14-day) 47.91 MTS Shares `000 152.004 16.78 MTS Rs `000 1,971.93 KSE 100 INDEX closed up 103.17 points at 12,057.54. Volume was 8 MA (10-day) 18.22 MTS Rate 16.00 per cent below average and Bollinger Bands were 43 per cent narrow- MA (100-day) 18.58 ** NOI Rs (mn) 13.26 er than normal. As far as resistance level is concern, the market will MA (200-day) see major 1st resistance level at 12,139.90 and 2nd resistance level at Free Float Shares (mn) 585.02 Free Float Rs (mn) 9,845.95 12,222.25, while Index will continue to find its 1st support level at Target price for Dec-11 & **Net Open Interest in future market 11,970.95 and 2nd support level at 11,884.30. PTC closed up 0.05 at 16.83. Volume was 176 per cent above average KSE 100 INDEX is currently 8.3 per cent above its 200-day moving (trending) and Bollinger Bands were 27 per cent narrower than normal. average and is displaying an upward trend. Volatility is relatively norPTC is currently 9.4 per cent below its 200-day moving average and is dismal as compared to the average volatility over the last 10 trading ses- playing an upward trend. Volatility is extremely high when compared to the sions. Volume indicators reflect volume flowing into and out of INDEX average volatility over the last 10 trading sessions. Volume indicators at a relatively equal pace. Trend forecasting oscillators are currently reflect moderate flows of volume into PTC (mildly bullish). Trend forecastbullish on INDEX. ing oscillators are currently bullish on PTC. MA (200-day)
Brokerage House
Target Price
RSI 1st 2nd (14-day) Support 57.25 2.75 2.50
Allied Bank Limited
Leverage Position MTS Shares `000 MTS Rs `000 MTS Rate ** NOI Rs (mn) Free Float Rs (mn)
97.00 758.49 20.00 N/A 6,806.49
Target price for Dec-11 & **Net Open Interest in future market
Target price for Dec-11 & **Net Open Interest in future market
Target price for Dec-11 & **Net Open Interest in future market
OGDC closed up 6.97 at 145.66. Volume was 443 per cent above average (trending) and Bollinger Bands were 0 per cent wider than normal. OGDC is currently 5.0 per cent below its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into OGDC (mildly bullish). Trend forecasting oscillators are currently bullish on OGDC.
FFC closed up 1.04 at 141.91. Volume was 112 per cent above average and Bollinger Bands were 78 per cent narrower than normal. FFC is currently 16.9 per cent above its 200-day moving average and is displaying a downward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of FFC at a relatively equal pace. Trend forecasting oscillators are currently bearish on FFC.
BAFL closed down -0.74 at 10.09. Volume was 45 per cent below average and Bollinger Bands were 25 per cent narrower than normal. BAFL is currently 3.2 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 BAFL (mildly bullish). Trend forecasting oscillators are currently bullish on BAFL.
3.50 4.80
9.70
43.00
3.05 4.65
9.50
4.15 5.35
10.65 4.40 5.65
5.65
10.20 3.75 5.15
2.55
198.90 200.35 196.95 10.15
10.35
9.95
4.15
4.25
4.10
42.75
43.10
42.50
38.05
65.90 42.98
2.45
2.40
2.55
2.60
2.50
Lotte Pakistan
63.62
16.55
16.35
17.00
17.30
16.85
Lucky Cement
69.52
72.80
72.20
73.85
74.30
73.25
MCB Bank Ltd
52.37
205.25
203.40
Maple Leaf Cement
37.31
2.15
2.10
2.30
2.40
2.25
National Bank
24.50
52.55
52.20
53.45
54.00
53.10
Nishat (Chunian)
54.32
28.00
27.65
28.90
29.45
28.55
Netsol Technologies
43.97
22.30
22.05
22.95
23.35
22.70
NIB Bank
47.89
Nimir Ind.Chemical
41.22
Nishat Mills
43.54
62.10
61.25
Oil & Gas Dev. XD
66.56
141.40
137.10
PACE (Pakistan) Ltd.
42.91
2.95
2.90
1.85 2.50
44.25
37.80
K.E.S.C
2.60
43.80
38.20
Kot Addu Power
1.90
42.65
10.35
43.45
208.45 209.80 206.60
2.00
2.05
1.95
2.85
3.00
2.75
64.40
65.85
63.55
148.30 150.95 144.05 3.20
3.30
3.10
Pervez Ahmed Sec
38.74
1.55
1.45
1.75
1.90
1.70
P.I.A.C.(A)
43.61
2.45
2.40
2.55
2.65
2.50
Pioneer Cement
35.46
5.40
5.30
5.60
5.75
5.50
Pak Oilfields
58.57
325.65
322.95
331.05 333.70 328.35
Pak Petroleum
58.90
210.20
207.95
215.60 218.75 213.35
Pak Suzuki
52.36
67.75
65.55
P.S.O. XD
49.99
273.40
271.95
P.T.C.L.A
47.90
16.55
16.30
Shell Pakistan
52.38
209.50
208.25
Sui North Gas
36.88
18.40
18.20
18.95
19.30
18.75
Sitara Peroxide
59.60
18.55
18.25
19.25
19.70
19.00
Sui South Gas
25.61
20.55
20.20
21.65
22.35
21.25
1.55
1.45
71.55
73.20
69.35
276.90 278.95 275.45 17.25
17.70
17.00
212.50 214.25 211.25
Telecard
28.81
TRG Pakistan
37.36
2.55
2.50
2.70
2.80
2.65
United Bank Ltd
53.13
63.50
63.25
64.15
1.70
64.50
1.75
63.85
WorldCall Tele
37.39
2.25
2.20
2.35
2.40
2.30
1.60
First American Q1 below Street on rise in claims 5
Monday, May 2, 2011
US target state health insurance funds
NEW YORK: The MetLife building is seen in New York. Reuters
AIG seeks to recoup billions it says lost to fraud WILMINGTON: American International Group Inc launched a fight to recoup billions of dollars the bailed-out insurer said it lost due to fraud, setting up a clash with Wall Street's biggest banks. The insurer, 92 per centowned by the US government, joined the swelling ranks of investors and insurers who are taking legal action over supposedly safe mortgage-related investments at the heart of the 2008 financial crisis. The insurance giant sued two money managers in New York State Supreme Court on Thursday, but AIG will likely take aim at Bank of America Corp Goldman Sachs Group Inc and others, according to a person familiar with AIG's strategy. The company that was once vilified for shoddy risk management that led to $182 billion taxpayer bail-out, could now be trying to recast itself as the victim. "I think the more that comes out about the crisis the more they have been revealed to be
a victim, or even a patsy," said Isaac Gradman, an attorney who runs the Subprime Shakeout blog and who has brought similar lawsuits. "It's a very serious effort to recoup losses. They have hired one of the best law firms in country for this type of litigation," Gradman said. The complaint was filed by Quinn Emanuel Urquhart & Sullivan LLP. It was brought by AIG's Financial Products unit as part of the insurer's "overall efforts to recoup potentially billions of dollars from the fraudulent conduct of these defendants and other parties," the complaint said. The lawsuit against ICP Asset Management and Moore Capital contended that AIG suffered losses by insuring mortgage securities that one of the financial firms created. ICP could not be immediately reached for comment. A Moore spokesman said in a statement: "We haven't seen the complaint, and therefore can't comment on it." Goldman Sachs and Bank of
America declined to comment. AIG could be taking aim at smaller firms before taking on the more formidable opponents. "If the suit does well, that might put some pressure on Goldman and Bank of America to make some kind of arrangement to avoid a suit," said Robert Hockett, a law professor at Cornell University and an expert in banking regulation. Investors, bond insurers and federal home loan banks have already sought tens of billions of dollars from the banks for misrepresenting the quality of the home loans that were packaged into bonds known as mortgage-backed securities. While none of the lawsuits has gone to trial, Bank of America recently reached a $1.6 billion settlement with Assured Guaranty Ltd , which insured mortgage bonds. Some financial and legal analysts said that deal showed the legal claims posed a real risk to the banks. -Reuters
Brussels: Belgium-based insurance group Ageas Chief Executive Officer Bart De Smet and Chairman Jozef De Mey preside a shareholders' meeting in Brussels. Reuters
Aetna boosts cat bond coverage for health insurance risks LONDON: Aetna Inc has returned to the catastrophe bond market with an upsized $150 million deal, after the U.S. health insurer decided to sell an extra layer of protection on its existing reinsurance programme less than five months after it closed its Vitality Re transaction. Standard & Poor's (S&P) assigned BBB and BB+ ratings respectively to the Class A and B notes to be issued by Vitality Re II Ltd, the credit rating agency said in a statement. Insurers and reinsurers use catastrophe bonds to transfer major risks on their books, such as storms and earthquakes, to capital markets investors, thus releasing capital to underwrite new insurance business. The latest risk transfer contract will be issued through Cayman Islands-based Vitality Re provides $150 million of excess of loss reinsurance coverage on a portion of Aetna's group commercial health insurance business. "The notes cover claims payments of Health Re Inc., and ultimately, Aetna Life Insurance Co. (ALIC), relating to the covered insurance business to the extent that the medical benefits ratio (MBR) exceeds the class-specific MBR attachment levels," S&P said in a statement late on Thursday. The insurer launched a $105 million deal to capital market investors at the beginning of April under its Vitality Re Ltd special purpose vehicle, but it was increased during marketing due to increased investor appetite for a non-peak peril. Aetna closed its three-year class A notes at $110 million, and the Class B notes at $40 million said S&P. Pricing was increased from the original guidance, coming in at 440 basis points over Libor for the Class A notes and at 625 basis points over Libor for the Class B notes, according to S&P. -Reuters
W A S H I N G T O N : Republicans in the US Congress are launching a fresh attack on the healthcare law by targeting grants to states for creating insurance exchanges, just as congressional budget analysts said setting up the marketplaces may be delayed. Next week, the US House of Representatives is expected to take up a bill that would repeal funding for $1.9 billion in grants for establishing exchanges where individuals can purchase health insurance. While the measure is expected to pass the Republican-controlled House, this latest attack against President Barack Obama's healthcare overhaul will likely go nowhere in the Democratic-led Senate. The exchange idea is a key component of Obama's healthcare law, which has faced numerous challenges in Congress and the courts since it was passed a year ago. Exchanges must be operational by January 2014 and self-supporting by January 2015. But the Congressional Budget Office said in a new analysis the exchanges are not expected to reach full enrollment until 2016. "That expectation reflects the likelihood that some states will encounter delays in achieving fully operational exchanges in the first few years," CBO said. "In addition, participation rates among potential enrollees are expected to be lower in the first few
years as employers and individuals adjust to the features." More than half the states, along with business groups and individuals, have sued, saying the law's requirement that people buy insurance is unconstitutional and that the law usurps states' sovereignty. The Republican-controlled House voted to repeal the law this year. But with Senate Democrats standing in the way of full repeal, House Republicans are now working on bills to try to undo the law bit by bit. Two weeks ago, the House passed a bill that would yank money for a prevention and public health fund. A bill repealing grants for operating school-based health centers also could come to the House floor as early as next week. The CBO, which estimates the costs of legislation, said blocking state grants for exchanges would reduce the U.S. deficit by about $14 billion from 2012 through 2021. Rescinding the funds, though, would not eliminate the exchanges. Instead, it would shift much of the responsibility for creating the marketplaces to the federal government, which could in turn push up U.S. costs, CBO said, although it did not estimate the size of those obligations. States can create exchanges alone, band with neighboring states, or opt out entirely and have the federal government establish exchanges within their borders. -Reuters
State court upholds Rhode Island insurance statute WASHINGTON: A Rhode Island state court has upheld a statute under which insurance companies that want to wind up their operations can buy policies back from policyholders. The decision by Associate Justice Michael Silverstein of Providence Country Superior Court upheld a law that allows insurance companies based in Rhode Island to pay creditors a lump sum in exchange for full release from their liabilities. In most states, insurers and reinsurers that want to wind down can stop writing new policies. But, in a process known as runoff, they must continue to pay claims on existing policies for as long as claims are made. In an effort to stimulate its economy and attract segments of the insurance industry to the state, Rhode Island passed a law in 2002 giving insurance companies an alternate run-off process. The law came under judicial scrutiny when GTE Reinsurance Company Limited filed a plan to wind down operations. The plan was approved by a majority of the creditors, but affiliates of Odyssey America Reinsurance Corp filed a motion claiming the
plan undervalued their claims. They also argued that the Rhode Island law violated the contract and due-process clauses of the United States and Rhode Island Constitutions. Associate Justice Silverstein disagreed, finding that the rights of the Odyssey affiliates were not impaired. He also ruled that even if their rights had been impaired, it would be justified by the Restructuring Act's "legitimate public purpose" of stimulating the economy and attracting insurance companies to the state. "The Court is satisfied that the Restructuring Act is a legitimate legislative enactment which addresses the State's economic concerns and protects commercial insurance creditors against the harms of run-off," Silverstein wrote in his decision on Monday. Gary Lee, an attorney at the law firm Morrison & Foerster LLP, which defended the law on behalf of the Insurance Division of the Rhode Island Department of Business Regulation, said in a statement that the GTE plan "provides a roadmap for future commutation plans under the statue." Reuters
Liberty Mutual buys 51pc of Ireland's Quinn Insurance DUBLIN: Leading US insurer Liberty Mutual Group Inc. has agreed to buy a controlling stake in Ireland's Quinn Insurance, which was put into administration last year, the administrator said. Quinn Insurance was put into administration after the financial regulator expressed concern about the firm's ability to cover its liabilities. The company is a major debtor of scandal-hit Anglo Irish Bank, which will retain a minority shareholding in the new firm. Liberty will invest 102 million ($148.4 million) to secure 51% in a new joint venture built from Quinn Insurance assets, the Liberty Mutual Direct Insurance Co. The administrators will invest 98 million ($142.6 million) and maintain a 24.5% stake. Anglo Irish will also take a 24.5% stake and will release assets it held as collateral. The administrators also reported that Quinn Insurance posted a 2009 full-year loss of 706 million ($1.03 billion). The administrator estimated this would lead to a call of 600 million ($872.9 million) on Ireland's insurance compensation fund, a levy to be imposed on the country's nonlife insurance companies. -Reuters
China Q1 insurance premiums up 1.7pc y/y BEIJING: China's total insurance premiums inched up 1.7 percent in the first three months of the year to 461.7 billion yuan ($71 billion) from a year ago, the official Xinhua news agency said. That is a slight slowdown from a rise of 3.2 percent in the first two months of this year. Assets in the industry totalled 5.4 trillion yuan by the end of March, up 3.8 percent from the end of February, the report said, citing figures from the China Insurance Regulatory Commission. It added that insurers earned 51.5 billion yuan from investments in the first quarter, registering an average return of 1.1 percent. It did not give a comparative figure. -Reuters
KSE last wk
5.7mn insurance shares traded TFD Report KARACHII: Some positive activities witnessed in the insurance stocks last week at the Karachi Stock Exchange with more than 5.7 million shares traded together in life and non-life insurance sectors. Pak Reinsurance was the most traded stock with 4.6 million shares followed by Adamjee Insurance with 0.6 million shares. Top gainers of the week include; New Jubilee Life Insurance which increased by Rs6.74 to close at Rs53 and Central Insurance which rose by Rs4.52 to close at Rs71.79 while PICIC Insurance fell by Rs2.25 to close at Rs8.99 and Adamjee Insurance was down by Rs1.18 to close at Rs68.98 being the major losers of the week.
9
Monday, May 2, 2011
SCHWARTZEL'S MASTERS BREAKTHROUGH TRUMPS WOODS A
lmost overlooked as Charl Schwartzel surged clear of a congested leaderboard to clinch this month's US Masters with a sizzling finish was the fact that he eclipsed Tiger Woods with his breakthrough. Woods, a four-times winner of the season's opening major, claimed his first Masters victory in his third appearance at Augusta National while South African Schwartzel, remarkably, did so with his second attempt. Only two other players have land-
ed the cherished green jacket in their second starts -- Jimmy Demaret in 1940 and fellow American Herman Keiser in 1946. In 1997, a 21-year-old Woods became the youngest Masters champion, cruising to a 12-shot victory and mocking the belief that the recipe for success at Augusta National took years to learn. Woods is a very special case,
though, and he has since claimed a further 13 major titles to embellish his credentials as the best player of his generation and, arguably, ever. The conventional wisdom about earning your Masters spurs still applies -- despite Schwartzel's spectacular display in the final round a fortnight ago, when he ended a sweltering afternoon of breathtaking shot-making with four successive birdies. Asked before this year's Masters if he would be surprised to see a relative Masters novice slipping into the
can be the difference, or short of the flag can be the difference between having a chip for birdie and struggling to get down in two. "So when you talk about two or three yards either way, obviously local knowledge counts for a lot." DAUNTING CHALLENGE While there is very little rough at pine tree-lined Augusta National, its notorious greens with their severe slopes and slick pace present the most daunting challenge for the players. For Schwartzel's compatriot Dale Hayes, a former European number one who played in three Masters during the 1970s, success at Augusta National hinges on the position of every first putt. "Before you even get to the greens, you have to know where to hit the golf ball to allow you to hit your second shots in the right places on the greens," Hayes, 52, told Reuters. "That is the trick. "The guys that do well at Augusta are the guys who hit their shots to the greens in the right positions. If you are in the wrong positions, you will never, ever win there. "But if you are in the right positions, you've got a chance because you can leave yourself putts that are relatively easy." Hayes, a five-times winner on the European Tour, agrees with former world number one Nick Price's assessment of how top amateur golfers would fare on Augusta's daunting greens. "Nick has said that he could take a scratch golfer, put him on the green in regulation play on every hole at Augusta National and that player would score 90," Hayes said with a smile. "That he would three-putt every green at best. "I believe that's a fact. I think you could even take a professional and he would three-putt every green from some of the positions. "It's all about the shots to the greens at Augusta -- the first shots on par threes, second shots on par fours and sometimes third shots on par fives. Where you hit the ball is critically important." LEARNING CURVE Schwartzel, who tied for 30th on his Masters debut last year, conceded that relative newcomers to Augusta National faced a steep learning curve. "It's definitely one of those courses where you'll keep learning every
green jacket, British world number one Lee Westwood, who was ranked second at the time, told Reuters: "Yeah, a little bit I suppose. "You look at repeat winners here. It seems to be the rule that you have to have played a few (Masters) to get the hang of it. Local knowledge does come in there. "There are such fine parameters -a yard past the flag on certain holes
year you come back," the rail-thin South African said. "It's not a course you're going to master after a couple of rounds. "I've been fortunate enough to come out here before the tournament weeks with Ernie (Els) and play a few rounds. You get to see a lot. You can spend a bit of time, stand back and look at things a bit more." Schwartzel, who won the Masters on the 50th anniversary of compatriot Gary Player's 1961 title, said he had especially benefited from Augusta National advice passed on by Jack Nicklaus and Zimbabwean Price. Six-times winner Nicklaus took the young South African through his strategy for playing every hole at Augusta during a lunchtime discussion in Florida last year while Price taught him how to tackle the greens. "Last year I had problems with the putting," Schwartzel, 26, said. "I found the greens were just so quick. I've never hit putts so soft from 40 feet and I struggled with that. "Nick said he used to find the fastest putt on every green and practise that. That's what I did for...three weeks. "Every tournament I went to, I just practised the fastest putt I could find...to learn to hit the putts that softly. It really paid off. I felt so good on these greens." -Reuters
Fraser Extolls The Virtues Of The Mature Swimmer T
he hair is now snowy white and the shoulders that powered her to four Olympic golds a little stooped, but Dawn Fraser still has devilment in her blue eyes and a ready opinion on her lips. The 73-year-old, widely regarded as the finest female sprint swimmer of all time, excuses herself for chomping on a hot dog to make up for a missed breakfast before tucking into questions about Australian swimming with equal relish. Top of the list is the return to the pool of 28-year-old fivetimes Olympic champion Ian Thorpe, her male equivalent in the honour roll of Australia's greatest swimmers, after five years out of competition. "Ian retired too early, I told him he was too young and still had a lot to get out of the sport, but he had just had enough," she told Reuters in an interview. "I think it's a great challenge but he's still a young man. At 27 years of age, I was just maturing in swimming ... and maybe in a lot of other ways too," she chuckled. Fraser's own swimming
career was cut short at 27 after she won an unprecedented third successive Olympic 100 metres freestyle title at the 1964 Tokyo Games. Famously free-spirited, Fraser was banned for 10 years by Australia swimming chiefs for disciplinary offences, including being arrested for stealing a flag from outside the palace of the Japanese Emperor. The ban was later reduced to four years but the reprieve came too late for her to prepare for a bid for a fourth successive gold at the 1968 Mexico Olympics. "Swimmers usually go out about 25 but now we're finding that they go on until they're 31 and we're finding that that's a good age," she said. "I think I could have proven that had I not been banned. That at 31 years of age, I could still have gone on and won another gold medal." That Fraser's 100m world record -- one of 27 individual records she held -- was not bettered until 1972 lends credence to her belief, and she says she never showed any signs of losing the motivation to swim at
the highest level. "There was never a day when I didn't want to get into the pool, I fell in love with it," she said. "I don't think my coach ever had to bawl me out for not wanting to train. I really enjoyed the competitiveness of it ... and I enjoyed the technicalities of learning about the water and what you can do to pull this body through the water." AUSTRALIAN COMPETITIVENESS Fraser believes the return of Thorpe, as well as former world champion Michael Klim and Olympic champion Libby Trickett, will inspire younger Australian swimmers in the run-up to next year's London Olympics. "If I were in their shoes, at their age, I would be really inspired to think that Thorpe, a five-times Olympic champion, it would inspire me to try and beat him," she said. "And that's competition and that's what's good about Australian sport is the fact that it's very competitive." Fraser said she had been impressed with the perform-
ance of Alicia Coutts and teenage sprinters James Magnussen and James Roberts at last week's Australian championships. "I'm very surprised at the younger kids coming through and I think that the older kids like Trickett, Thorpe and Klim are going to have a hard job to get back into it because these kids are swimming really fantastically," she said. "It's really going to be interesting next year at the Olympic trials." Fraser still has a home in the now gentrified Sydney suburb of Balmain, where she took up swimming at the age of 12 to help with severe respiratory problems. After spells running a pub and as an elected politician, she now spends her time helping look after her grandson as well as working with disadvantaged children through the Laureus sports foundation. After polishing off her hot dog at just such an event in a park just south of Sydney city centre, Fraser said she took great pleasure from her role and hoped it would help the vulnerable children steer clear
of drugs and alcoholism. Fraser's own start in life was equally unpromising and she grew up with seven siblings in what was then a tough working-class neighbourhood -- a world away from the wellfunded and supported athletes of today.
"My first gold medal at the Melbourne Olympics in 1956 was the first time my mum and dad had seen me swim," she recalled. "Because we were a working-class family and couldn't afford the tickets. They were given the tickets by the chief
justice, Sir Lesley Herron, and the people of Balmain raised a lot of money to get them down to Melbourne. "It was a surprise to me until the day of the race. And there they were, right on the finish line. I'll always remember that." -Reuters
Analysis
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Monday, May 2, 2011
COMMODITIES NO CURE FOR CHINA'S CASH PROBLEM * REPORTS OF CHINA PLANS TO SPREAD FOREX RESERVES RAISE QUESTIONS * BOOSTING GOLD HOLDINGS VIABLE, OIL IMPRACTICAL, UNHELPFUL * COMMODITY MARKETS TOO SMALL TO ABSORB CHINESE BILLIONS
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ou know the feeling, you have $3 trillion in foreign currency burning a hole in your pocket and you are itching to spend. But on what? A mountain of gold, a sea of oil or a pile of paper? So far China has chosen paper, especially in the form of US treasury bills. But comments this week by China's central bank chief that the country's foreign exchange reserves exceed reasonable requirements, and local media reports that Beijing was considering setting up investment funds in energy and precious metals, again raise the question about what the country can do with its money. The size of the issue is staggering -- in the first three months of the year China reserves grew by $197 billion to $3.05 trillion. At first glance, investing in gold , which is at record highs, or oil, which has rallied for each of the past eight months, makes sense. Gold has thousands of years of history as a store of value, but no nation has ever looked at oil as way to diversify foreign exchange holdings, only as a strategic resource in case of war or disaster. There is a very good reason for that -- unlike gold which can sit in a vault indefinitely, oil degrades once it has been pumped out of the ground and a tank of crude would be
essentially worthless after 20 years. Diverting even 10 percent of the nation's mostly dollardenominated treasure chest into commodities would cause huge ripples, and risk fuelling Beijing's current bugbear -- inflation. "These are very big numbers, but how can China get into these markets without driving them to incredible levels? Any sniff they are actually doing this would send prices through the roof," said Jonathan Barratt, managing director of Commodity Broking Services in Sydney. Ten percent, or $300 billion, could buy 200 million ounces of gold or 6,400 tonnes -- more than twice the amount mined globally every year. In terms of oil, they could buy 2.68 billion barrels, enough to power the world for a month. Beijing might be more willing to risk disrupting the bullion market than one which would have a greater direct impact on the lives of ordinary Chinese people. "Inflation is perceived as a real threat to social stability in China and anything that risks higher prices, especially of basic staples like food and energy, will not be tolerated," Barratt said. "Gold falls well outside the basic need criteria and the authorities would probably turn a blind eye to a super bubbly bullion market."
The most recent data from the World Gold Council showed China held around 1,054 tonnes of gold -- less than 1.6 percent of its foreign currency reserves. The United States, the world's top gold hoarder, has more than 8,100 tonnes of metal, equivalent to 75 per cent of its foreign currency reserves. The bullion market, like most other commodities, is highly sensitive to China's intentions. In February last year a report on a Russian website, "Rough & Polished", that China would buy nearly 200 tonnes of gold from the International Monetary Fund sent prices jumping, despite the most flimsy sourcing. The report proved to be unfounded, but any official comment on how China might expand its gold holding would send gold bugs into paroxysms of ecstasy. "Diversification of foreign reserves is certainly a worthy idea," said Lu Feng, Professor of economics, China Center for Economic Research at Beijing University. "However, the experience in the past few years shows that the endeavour could be very difficult -- the scale of the foreign reserve is so humongous that prices of anything that the state showed an interest in purchasing with the reserve would go up." He said those price rises,
even if the purchase was successful, meant the state might end up losing even more money than holding onto the currency. SHOTGUN APPROACH The PBOC will need to think bigger than energy and precious metals if they want to succeed in diversifying. In February, the country's top money manager warned of the risks of pushing too much money into commodities. "Some have argued that we should buy oil, buy gold, buy iron ore, or even buy into companies and land. But it is much
easier said than done," Yi Gang, head of the State Administration of Foreign Exchange (SAFE), said in a speech. China has already been an aggressive player chasing investment opportunities in resource firms. Recently, Minmetals Resources , a unit of China's biggest metals trading company bid, unsuccessfully for Africa-focused copper miner Equinox , Chinalco bought 9 percent of global miner Rio Tinto and has also been active in oil and coal. "The question is whether to buy materials or invest in
resources. If the government went to buy materials, it would hike the prices, which would be counter-productive," said Shi Heqing, an analyst at Antaike, a state-backed consultancy based in Beijing. "The more sensible way is probably equity investment in resources companies, but not necessarily to seek a majority share holding." But with state champions and privately-owned firms on the acquisition path and its existing sovereign wealth fund worth $300 billion all hungry for ways to secure supply and hedge against ris-
ing commodity prices, more investment vehicles risk competition against each other for the same assets. "From the point of view of investment structure, should funds be set up to invest in energy and precious metals in the next 30 to 50 years? Absolutely," said Dong Tao, chief regional economist at Credit Suisse. "With $3 trillion, China should invest in every possible asset. It can probably put $200 billion to $300 billion in each. Whatever they buy, it's better than buying U.S. Treasuries." -Reuters
IS DOLLAR DECLINE MORE DANGEROUS THAN IT SEEMS? * DOLLAR'S DECLINE STARTING TO UNNERVE SOME INVESTORS * WASHINGTON MOSTLY UNVEXED, NO CHANGES EXPECTED FROM FED * CENTRAL BANKS, PRIVATE BUYERS WORRIED ABOUT TREASURIES
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either Washington nor Wall Street is losing much sleep yet over the dollar as it slips close to all-time lows. But perhaps they should be. The dollar has shed some 8 percent against major currencies this year, and if the decline quickens, it could provoke protectionism from America's trade partners, worsen inflation at home and spark a general loss of confidence in U.S. assets. That would all make it much more difficult to finance the country's huge deficits, and could threaten to send the U.S. economy into another recession. In fact the burgeoning national debt is where all the negatives for the dollar converge, with America's prized AAA credit rating under threat and large corporations like Caterpillar urging Washington to get its act together. "There's no sign of panic yet. But the situation can change on a dime," said Brown Brothers Harriman strategist Lena Komileva. If the U.S. economy weakens and U.S. lawmakers fail to find a way to slash a yawning budget deficit, "that could create a run on the dollar." U.S. policymakers, including Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke, insist they want a strong dollar, but
investors say their actions suggest otherwise. The Fed has held interest rates at zero since late 2008, in contrast to other central banks that have begun raising rates to fend off inflation. That's been an invitation for investors to borrow dollars at virtually no cost and swap them for higher-yielding currencies and assets such as oil and equities. Gold and silver have hit record highs and the euro is hovering near $1.50, about 10 cents from its all-time peak hit in 2008. Standard & Poor's put another chink in the dollar's armor this month when it warned it could cut the United States' credit rating if lawmakers don't find a way to slash a massive federal budget deficit within two years. Corporate America is voicing its concerns as well. The chief executive of Caterpillar Inc on Friday called for a resolution to the long-running budget battle, saying that finding a way to strengthen the economy would help control the nation's rising deficit and improve long-term competitiveness. Bernanke argues that the U.S. economy remains too fragile for tighter policy and suggested the Fed's progrowth measures will help the dollar down the road. "If we do what's needed to pursue our dual mandate for
price stability (and) maximum employment, that will also generate fundamentals that will help the dollar in the medium term," he said at a press briefing this week. Adnan Akant, who helps manage about $20 billion in currency assets for FischerFrancis Trees & Watts, a New York unit of BNP Paribas, put it this way: "You don't get a strong dollar by raising rates. You get it by having low inflation and a stronger economy that requires you to raise rates." But that's cold comfort for emerging market countries who claim Fed policy encourages investors to pour money into their economies in pursuit of higher returns, pushing up inflation. "The cheap dollar is exporting inflation to the rest of the world and that creates problems," Komileva said. "What worries me is the prospect of more protectionism, which could create a lot of volatility in markets." So far, efforts by countries such as Brazil to limit capital inflows have had little effect. Instead, the real has soared to two-year highs against the greenback, which could undermine Brazil's exports and damage the broader economy. Europe would be just as unhappy to see the euro set a new high above $1.60, which would complicate indebted euro zone countries' ability to
grow their way back to health. It would also increase the chances of a Greek debt restructuring, which would hurt European bank balance sheets. The euro is currently at $1.4825, after weakening from $1.3345 at the beginning of the year, and would probably be higher but for Europe's own debt crisis. "This administration and this Fed are remarkably nonchalant about the dollar's place in the world," said James Grant, editor of Grant's Interest Rate Observer. "I think it's quite worrying." There's no doubt a weaker dollar will boost U.S. exports -- which is good news for corporate balance sheets and stocks. The White House has set a goal of doubling exports by 2015 as a key way to create jobs. It also forces developing countries that rely too
much on exports to become more comsumption-oriented, helping reduce inflation, said Eswar Prasad, senior fellow at the Brookings Institution in Washington. But a weak dollar makes imports, including oil, more expensive for U.S. consumers, and it could also lead to higher borrowing costs for consumers and businesses. All of this could hurt demand and economic growth. So far, the dollar decline has been orderly, with the 10year Treasury yield at a manageable 3.30 percent -- hardly what one would expect in a currency crisis. But many investors fear those low yields were largely engineered by the Fed, which has been buying about $75 billion worth of Treasuries a month since November. When it ends those purchases in June, other buyers may require higher yields to
step in. "When it comes to the U.S. economy, it's not that obvious that the benefits of a weaker dollar outweigh the costs," said David Woo, currency strategist at BofA-Merrill Lynch. In the late 1970s, the last time the U.S. found itself facing rising inflation and a loss of confidence in its assets, the Fed was forced to push interest rates through the roof, thrusting the economy into recession. "You don't have to be that old to recall those years, when Roman hotel clerks would look down their noses at dollar travelers checks because of the dollar inflationary crisis," Grant said. The situation is certainly not as parlous today, though there are signs that some investors are starting to slap a higher risk premium on dollar assets.
U.S. Treasury data shows China and other large foreign creditors' demand for U.S. government debt has cooled since the Fed began its $600 billion bond-buying program last year. Private buyers have their doubts as well. PIMCO, the world's largest bond fund, announced in February it had sold all U.S. Treasuries in its $236 billion Total Return Fund, and chief investment officer Bill Gross said he expected interest rates to climb, the dollar to fall and the United States to eventually lose its AAA credit rating. The quickest way to reverse the dollar decline, Woo said, would be for Congress and the White House to reach a deal on slashing the deficit. That would increase demand for dollars and push the euro back to $1.30 in coming months. But if politics get in the way and the fiscal situation is left to fester, things could get ugly fast, particularly if higher bond yields force the Fed to restart its bond-buying program later this year, said Douglas Borthwick, managing director of currency execution firmFaros Trading. "That's when you'll see a tipping point," he said. "Then S&P and the Chinese centralbank and others will step up their rhetoric and the dollar will be on a very rough road." -Reuters
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International & Continuations
Monday, May 2, 2011
Pope beatifies John Paul II VATICAN CITY: Pope Benedict XVI beatified Pope John Paul II before 1.5 million faithful in St. Peter's Square and surrounding streets Sunday, moving the beloved former pontiff one step closer to possible sainthood in one of the largest turnouts ever for a Vatican Mass. The crowd in Rome and in capitals around the world erupted in cheers, tears and applause as an enormous photo of a young, smiling John Paul was unveiled over the loggia of St. Peter's Basilica and a choir launched into hymn long associated with the Polish-born pope. "He restored to Christianity its true face as a religion of hope," Benedict said in his homily, referring to John Paul's decisive role in helping bring down communism. Benedict dotted his remarks with personal recollections of a man he came to "revere" during their near-quarter century working together. Beatification is the first major milestone on the path to possible sainthood, one of the Catholic Church's highest honors. A second miracle attributed to John Paul's intercession is needed for him to be canonized. The beatification, the fastest in modern times, is a morale boost for a church scarred by
the sex abuse crisis, but it has also triggered a new wave of anger from victims because the scandal occurred under John Paul's 27-year watch. Police placed wide swaths of Rome even miles (kilometers) from the Vatican off limits to private cars to ensure security for the estimated 16 heads of state, eight prime ministers and five members of European royal houses attending. Helicopters flew overhead, police boats patrolled the nearby Tiber River and some 5,000 uniformed troops manned police barricades to ensure priests, official delegations and those with coveted VIP passes could get to their places amid the throngs of pilgrims. Spain's Crown Prince Felipe and Princess Letizia, wearing a black lace "mantilla," mingled with Italian Premier Silvio Berlusconi, Poland's historic Solidarity leader and former President Lech Walesa and Zimbabwean President Robert Mugabe, who sidestepped an EU travel ban to attend. "He went all over the world," said Bishop Jean Zerbo of Bamako, Mali, who came to Rome for the ceremony. "Today, we're coming to him." Vendors hawked John Paul trinkets: bottle openers, key chains, cushions, calendars
and T-shirts. Benedict put John Paul on the fast-track for possible sainthood when he dispensed with the traditional five-year waiting period and allowed the beatification process to begin weeks after his April 2, 2005, death. Benedict was responding to chants of "Santo Subito!" or "Sainthood Immediately" which erupted during John Paul's funeral. On Sunday, a group of pilgrims from Krakow affixed a banner to a fence outside the square that said "Santo Subito," evidence that for many of the faithful, John Paul already is a saint. "John Paul was a wonderful man and it's a privilege to be here. It's wonderful to see people from all across the world," said Anne Honiball, 48, a nursing home administrator from Worthing, England who carried a small Union Jack flag. "We missed the royal wedding but we are Catholics and this was a bit more important, I suppose," said Honiball, a former Protestant who converted to Catholicism 10 years ago. Around the world, Catholics celebrated the beatification, jamming churches from Mexico to Australia to pray and watch broadcasts of the Rome Mass on television.Reuters
VATICAN CITY: In this photo released by Italian Police faithful crowd St. Peter's Square and Via della Conciliazione at the Vatican on Sunday. (Below photo) Cardinals kiss the casket of late Pope John Paul II, laid out in state at the Altar of the Confession inside St. Peter's Basilica. -Reuters
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represents Herat province, said "cooperation in improvement of gas and fuel industry is on top of our agenda. Meanwhile, parliamentarians also ratified the agreement of Convention on Cluster Munitions, which is an international treaty that bans the use of cluster bombs, signed by the Afghan government. Lawmakers said Afghanistan is the 24th member of Convention on Cluster Munitions.-NNI
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Pakistan suffers from an awful energy crisis, yet government spending on electricity subsidies last year reached just under one percent of GDP, health spending 0.5 per cent and education two percent, said the finance ministry. According to a 2009 study by the Pakistan Institute of Legislative Development and Transparency, the average member of Parliament was worth $900,000 and the wealthiest $37 million. Those figures stand against estimates that a quarter of the population lives below the poverty line and that GDP per capita stands at $2,400. "No one trusts the government," says industrialist Mohammad Ishaq, former vice president of the chamber of commerce in the northwestern province of Khyber Pakhtunkhwa. "Without social welfare and with this corruption, nobody is ready to pay tax... in return one gets nothing -- no health, education, social security." Eunuchs have been appointed tax collectors in Karachi, the financial capital, on the understanding that a visit from the maligned transgender group would embarrass people into paying up. But former finance minister Salman Shah said tax evasion was inevitable because of corruption within the FBR, which employs 23,000 people nationwide. "There's a big mistrust of the tax authority itself. That's why a self-assessment scheme came in," said Shah. Pakistan's counter-terror fight generates huge injections of aid from the United States, but at a conference last October, Secretary of State Hillary Clinton could not hide her impatience. "It is absolutely unacceptable for those with means in Pakistan not to be doing their fair share to help their own people while the taxpayer of Europe, the US and other contributing countries are all chipping in to do our part," she said. -Agencies
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amenities of life negating their tall claims of bread, clothing and shelter. APML Secretary General Barrister Muhammad Ali Khan Saif addressing organizing committee of the party said that political capacity of PML-Q was only like a toilet paper that remains ready to serve other and whoever wants left it after taking advantage of it. -Online
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NATO's commander of Libya operations, Canadian LieutenantGeneral Charles Bouchard, said the target was part of a strategy to hit command centers that threaten civilians. "All NATO's targets are military in nature...We do not target individuals," he said in a statement. Any appearance of an assassination attempt against Gaddafi is likely to lead to accusations that the British- and French-led strikes are overstepping the provisions of the U.N. resolution to protect civilians. Britain said on Sunday it was investigating reports the ambassador's residence in Tripoli had been attacked, along with other countries' diplomatic premises. Venezuelan President Hugo Chavez, a long-time ally of Gaddafi, called the attack attempted murder. "There is no doubt the order was given to kill Gaddafi. It doesn't matter who else is killed, kill Gaddafi... a murder, this is a murder," he said in Caracas. NATO's Bouchard said: "I am aware of unconfirmed media reports that some of Gaddafi's family members may have been killed. We regret all loss of life." British Prime Minister David Cameron declined to comment on what he also called the "unconfirmed report."
Inside part of the villa hit late on Saturday, a beige sofa was virtually untouched, but debris had caved in on some striped upholstered chairs. The blasts were heard across the city. A table football machine stood outside in the garden in a wealthy residential area. Glass and debris covered the lawns and what appeared to be an unexploded missile lay in one corner. It appeared to be the second NATO strike near to Gaddafi in 24 hours. A missile struck near a television station early on Saturday when the Libyan leader was making an address in which he said he would never step down and offered talks to rebels. Tripoli has also declared a sea blockade on the western outpost of Misrata, potentially robbing the rebels of a vital aid link to their eastern heartland. An International Organization for Migration ship, the Red Star One, was waiting offshore to deliver aid and evacuate migrants and the wounded. A rebel spokesman and an oil official said an air strike destroyed a Gaddafi convoy after his forces killed five civilians in fighting in the eastern towns of Jalu and Awlijah. More fighting also broke out close to the Tunisia-Libyan border, scene of repeated skirmishes over the past days. The announcement of the attack was made live on state television, which later showed hundreds of people in and around Gaddafi's compound, chanting and vowing revenge. "We will fight and fight if we have to," Ibrahim said. "The leader offered peace to NATO yesterday and NATO rejected it." Gaddafi's daughter was killed in a U.S. air strike in 1986, ordered after a bomb attack on a West Berlin discotheque killed two US servicemen. Washington linked Tripoli to the attack. Reuters
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A Gulf-based trader also said there is strong demand for lighter grades on the back of Japan's requirements. The top OPEC producer had sold 2 million barrels of a special blend of crude to compensate for the high-quality Libyan barrels lost. -Reuters
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ENGRO, NML, and LOTPTA. According to experts majority of results were inline with expectations. OGDC and PPL reported 9MFY11 EPS of Rs11.4 (up 15%YoY) and EPS of Rs 20.4 (up 45%YoY), respectively on the back of higher international crude oil & realized gas wellhead prices. ENGRO posted EPS of Rs5.22 for 1Q2011, up 9%YoY. Though, gross margins remained flat YoY, jump in other income supported the bottom line. NML EPS of Rs9.90 (9MFY11) was up 92%YoY. Higher sales owing to high end product prices were the primary reason for this growth. On the economic front, likely release of US$981 million by the end of FY11 by the US government too supported the market. The amount includes $600 million for coalition support fund and $381 million under Kerry-Lugar bill. Investors' participation too remained on the higher side as 522 million shares traded during the week which was 208 million shares more as compared to a turnover of 314 million shares a week eerier. Out of total 447 active issues; 209 advanced and 180 declined while 58 issues remained unchanged. Rabia Tariq, analyst at JS Global Capital said that with key results already announced, we believe budget related news will determine the direction of the market, going forward.
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session after going ex-dividend. UAE bourses announced a delay on Thursday in implementing the new payment settlement system - Delivery Versus Payment (DvP), a pre-requisite for MSCI emerging market inclusion ahead of a review in June. Abu Dhabi's index drops 0.2 per cent to 2,691 points, also a two-week low, as bluechips weigh. Dana Gas falls 1.5 per cent and indebted-developer Aldar Properties drops 0.7 per cent. Abu Dhabi Commercial Bank falls 2.1 per cent, declining for a second session since Wednesday's 30-month peak. The lender's shares had gained after its first-quarter profit more than doubled. -Reuters
Hundreds arrested in Syria sweep: activists DAMASCUS: Hundreds of dissidents were arrested across Syria on Sunday, including in the flashpoint town of Daraa and a besieged Damascus suburb, after dozens were killed in weekend protests, activists said. Anti-regime activists called for fresh protests aimed at breaking the week-long siege of the capital's Douma suburb and of Daraa, as well as in solidarity with other towns faced with deadly crackdowns. Six civilians were killed in Daraa on Saturday, a day after massive protests over the Muslim weekend in Syria
No #8
where rights groups say the civilian death toll from unprecedented demonstrations that erupted on March 15 has topped 580. British Prime Minister David Cameron denounced Syria's "disgraceful" crackdown and urged more global pressure against Damascus, although Turkish Foreign Minister Ahmet Davutoglu warned against foreign military intervention. The United States has blocked assets of President Bashar al-Assad's brother Maher, who commands the feared Fourth Armoured
Division, as well as top officials and Syria's feared intelligence services. The European Union is preparing a raft of sanctions, including an arms embargo. "At least 356 people were arrested today across Syria, including in Daraa, Douma, Latakia and Qamishli," an activist told AFP by telephone. He said demonstrations were taking place in the central city of Homs, where protesters were chanting "the people demand the fall of the regime" in the Khaldiyeh area near Nur mosque.-Reuters
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During the meeting, President Asif Ali Zardari had expressed his readiness to give Punjab governorship to the leadership of PML-Q but it was giving preference to the deputy prime minister. The PML-Q delegates also presented economic agenda in the meeting, while it also expressed concern over the constitutional hurdles on the portfolio of Deputy Prime Minister. Earlier, Prime Minister Gilani while talking to the media in Lahore stated that political unities were being formed for the sake of national interest. PM Gilani said that MQM and JUI were their allies in the provincial governments and can be brought back to the federal government as well. The prime minister also stated that he had telephoned MQM Chief Altaf Hussein and had taken him in confidence regarding the deal with PML-Q. Prime Minister Gilani said that they did not leave the PML- N rather they quit the government. Prime Minster said that the MQM still ally party of government and they would be welcome whenever they wanted to join the federal cabinet. He said that Maulana Fazl-ur Rehman was also not an anti-government leader and he was still the partner of the government in Gilgit-Baltistan. He said coalition with the PML-N could not sustain in center but they have enjoyed this coalition in the provincial cabinet for more than three years. He reiterated that PPP government was guardian of the constitution of 1973 as it was created by former party leader Zulfiqar Bhutto. Gilani vowed the government would perform its duties according to the constitution and the matter of deputy Prime Minister would be handled as per constitution.
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Later, MQM leader Farooq Sattar, while talking to newsmen at Karachi, confirmed the Gilani's offer. "We have appraised them [PPP] of our viewpoint on accepting the ministries, so now they must resolve public issues before inducting us", he said. "Target killing and extortion in Karachi must be contained". Meanwhile, talking to reporters alongside federal interior minister, Rehman Malik, the premier said the government would review the matter if Constitution allows formation of the post of deputy prime minster. The PML-Q leader Chaudhry Pervez Elahi has demanded of PPP-led government the office of deputy prime minster in return of his party's support to the ruling coalition.-Agencies
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11 famous lawyers including Ali Ahmad Kurd, Abdul Hafeez Pirzada, Fakharuddin G Ibrahim, Tariq Mehmood, Khalid Anwar, Makhdoom Ali Khan, S M Zafar, Asma Jehangir, Aitzaz Ahsan, Sheikh Zahoor-ul Haq, and Abdul Latif Afridi besides Attorney to the government Babar Awan, Attorney General Maulvi Anwar-ul Haq, as well as secretary law and justice would provide judicial assistance in the case. This would be the first formal hearing of the case in the Supreme Court. Earlier, a three-member bench under the chief justice had mere evaluated the reference. And the bench had instructed the government to clarify the vague points and questions in the reference. After clarification of the constitutional points an 11-member bench was formed to start hearing of ZAB case from today. -Online
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remain in Pakistan, his assertion was "Keeping in view the prolonged recession in the developed world, foreign investors re likely to remain an integral part of the emerging markets, including Pakistan. Despite our current macro indicators not being very attractive, I believe over the longer term foreign investors will remain a significant part of the investors' mix, certainly with cyclical inflows and outflows."
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POL prices hiked to meet ‘Q’ ministries expense, says Musharraf
LAHORE: Activists of labour unions march on May Day. -Reuters
US sees silver lining in Pak-India talks WA S H I N G T O N : Describing the recent Indo-Pak Commerce Secretary-level talks as "very positive", the US has said the important decisions reached at the parleys could lead to significant new trade benefits for the two countries. "We have welcomed the progress that has taken place between India and Pakistan, particularly over the last several months," Assistant Secretary of State for South and Central Asia, Robert Blake, told PTI here. His remarks came when asked about a series of bilateral talks between India and Pakistan in the past several months. "We congratulate both
prime ministers for the very significant cricket diplomacy that took place at Mohali. I think that was the very positive follow on to the Home Secretary-level talks," he said in response to a question. "More recently, of course, the Commerce Secretaries had, I gather, a very positive meeting in Islamabad where they have apparently agreed to some important steps that could yield quite significant new trade benefits between these two countries," Blake said. "We have always said that there are very significant opportunities to expand trade between India and Pakistan that
would benefit both countries," he said. A joint statement issued after the Indo-Pak Commerce Secretary-level talks in Islamabad said the two sides would set up two groups of experts to examine the "feasibility, scope and modalities" for a new initiative to enable trade in electricity and to "initiate and substantially expand trade in all types of petroleum products". It said Pakistan recognised that the grant of Most Favored Nation status to India would help in expanding bilateral trade and both sides agreed to remove non-tariff barriers (NTBs) and other "restrictive practices" that hamper commerce.-NNI
Gaddafi survives but son killed in strikes TRIPOLI: Libyan leader Muammar Gaddafi survived a Nato air strike on a Tripoli house that killed his youngest son Saif al-Arab and three young grandchildren, a government spokesman said on Sunday. Libyan officials took journalists to the house, which had been hit by at least three missiles. The roof had completely caved in at places, leaving mangled rods of steel hanging down among splintered chunks of concrete. "What we have now is the law of the jungle," government spokesman Mussa Ibrahim told a news conference. "We think now it is clear to everyone that what is happening in Libya has nothing to do with the protection of civilians." The deaths have not been independently confirmed. But they would be sure to heap pressure on Nato --
which denies targeting the Gaddafi family -- from opponents of the mission who say it goes beyond its UN mandate to protect civilians. It would also show the vulnerability of Gaddafi himself. Fighting in Libya's civil war which grew from protests for greater political freedom that have spread across the Arab world, has reached stalemate in recent weeks with neither side capable of achieving a decisive blow. Ibrahim said Gaddafi's youngest son, Saif al-Arab, was killed in the attack. Saif al-Arab, 29, is one of Gaddafi's less prominent sons, with a limited role in the power structure. Ibrahim described him as a student who had studied in Germany. The grandchildren killed were pre-teens, Ibrahim said.
"The leader himself is in good health. He wasn't harmed," he said. "His wife is also in good health. "This was a direct operation to assassinate the leader of this country. This is not permitted by international law. It is not permitted by any moral code or principle." NATO denied targeting Gaddafi, or his family, but said in a statement it had launched air strikes on military targets in the same area of Tripoli as the bombed site seen by reporters. "NATO continued its precision strikes against regime military installations in Tripoli overnight, including striking a known command and control building in the Bab alAziziyah neighborhood shortly after 1800 GMT Saturday," it said. See # 4 Page 11
Riyadh pumps more oil as demand soars DUBAI/KHOBAR: Saudi Arabia's crude oil output edged back up in April to around 8.5 million barrels per day (bpd) from roughly 8.3 million bpd in March as demand picks up, Saudibased industry sources said on Sunday. The kingdom slashed output by 800,000 bpd in March, due to oversupply, oil minister Ali al-Naimi said last month, adding that he expected production in April to be a little higher than March's level. "Production was around 8.5 (million bpd) in April and the reason we raised output is because there was higher demand," said one Saudi-based industry source, declining to comment on where demand had
strengthened. A second industry source said the 8.5 million bpd may not include production from the Neutral Zone, which Saudi shares with Kuwait. Saudi crude exports were also higher in April from February and March, said a trader without quantifying figures. Since the start of the year consumers have urged the oil exporters to pump more crude to put a cap on oil prices, which surged to more than $127 a barrel last month, its highest level in 2-1/2 years amid unrest in North Africa and the Middle East and a declining dollar exchange rate. "But the key is, Saudi will only increase output if there is a supply gap in the mar-
ket or to meet extra demand (and) not for any pricerelated reason because the price today is due to speculation," said another Saudibased source. Gulf oil exporters expect demand to go up in the coming months as European refiners return from their spring maintenance period and Japan scrambles to rebuild its earthquake-shattered electricity grid. "I expect [Saudi] production to respond to market demand ... and I expect it to be around 9 million bpd towards end of May-early June," said Sadad alHusseini, a former top executive at State oil giant Saudi Aramco. See # 5 Page 11
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Monday, May 2, 2011
ISLAMABAD: All Pakistan Muslim League (APML) Quaid and former President of Pakistan Pervez Musharraf said that PPP-led government has put extra burden of increased oil prices on the masses to meet the expenditures of additional ministries given to PML-Q. According to the press release received here on Sunday, the APML Quaid said that leading political fronts of the country have nothing to do with public concerns and are busy in power sharing engagements to accomplish their personal pursuits. In his message the former President of Pakistan, APML Chief Pervez Musharraf said, the masses in the country were already confronting with the challenges of power outages, mounting inflating and unemployment and the additional increase in petroleum prices will heighten the miseries of the public. The leading political fronts were getting into agreements to multiply their political benefits by negating attention from the basic issues of the masses. Musharraf said that the increased oil prices will further heighten inflation in the country and the recent hike in petroleum product witness to the fact that the incumbents were least concerned to address basic problems of public. 'During my regime, the price of petrol was Rs 55 per liter that has increased up to Rs 88, while the prices of commodities compared to my government have also increased up to 150 percent', Musharraf said. The former president said, it seems that at presently anti-masses rulers were governing the country who aims at depriving the masses even from basic See # 3 Page 11
Rich in Pak pay next-to-nothing in taxes: FBR ISLAMABAD: Pakistan is defying mounting Western pressure to end a giant tax dodge with fewer and fewer people contributing to government coffers, spelling dire consequences for a sagging economy. Tax is taboo in Pakistan. Barely one per cent of the population pays at all, as a corrupt bureaucracy safeguard entrenched interests and guard private wealth, but starves energy, health and education of desperately needed funds. Less than 10 per cent of GDP comes from tax revenue -- one of the lowest global rates and worse than in much of Africa, say economists. Federal Board of Revenue (FBR) spokesman Asrar Rauf said 1.9 million people paid tax in 2010, less than the year before, despite 3.2 million being registered to pay -- itself a drop in the ocean of a population of 180 million. As a result, Pakistan's fiscal deficit widened from 5.3 per cent to 6.3 percent of GDP in 2010, the Asian Development Bank said this month, knocking 2011 growth figures to 2.5 per cent and predictions for 2012 to 3.2 per cent. In the wake of catastrophic
2010 floods that cost the economy $10 billion, Washington donated hundreds of millions of dollars and demanded that Pakistan's rich, whose lifestyles outstrip many in the West, step up to the plate. This month visiting British Prime Minister David Cameron pressed the point home, saying aid increases were a hard sell when: "Too many of your richest people are getting away without paying much tax at all and that's not fair". Tax reform has come to nothing, not least because of political stalemate in the hamstrung parliament and a government coalition threatened with collapse by walk-outs. The IMF last May halted a $11.3 billion assistance package over a lack of progress on reforms, principally on tax. And despite a flurry of meetings, no new loan has been agreed in the run-up to the IMF and World Bank's Spring meetings. An IMF review mission is due to visit on May 8. "Consensus is building, we have almost reached agreement (on reform)," one government official told AFP, but gave no details. Under pressure, President
Asif Ali Zardari pushed through a short-term 15 percent flood surcharge on income tax and a 2.5 percent special excise duty in March, but it is uncertain whether they will survive the next budget in June. Government suggestions of raising revenue by reforming a general sales tax ran into walk-outs from politicians who said it unfairly hits the poor. What would really work, say analysts, would be scrapping exemptions that serve entrenched interests, such as a 50 percent tax discount on sugar and a gate on taxing agricultural income that largely exempts wealthy feudal landowners. But stalemate and vested interests have made that impossible. "There's talk of early elections. One has a brittle coalition. A lot of the reform areas that need to be dealt with have very well entrenched and powerful lobbies that are making the case against it," said a finance ministry official. As it is, the tiny minority who contribute say they carry a disproportionate tax burden, for which they get nothing in return. See # 2 Page 11
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Afghan House approves TAPI gas agreement KABUL: Afghan lawmakers HAVE approved T u r k m e n i s t a n Afghanistan-Pakistan-India (TAPI) gas agreement, TOLONews reported. International Liaison Commission of the Afghan parliament viewed the agreement as an economy booster in the country and said Turkmenistan's gas flow through Afghanistan would help to strengthen business relations between the members of the projects. A member of international liaison commission of the Afghan House of Representatives Mohammad Anwar Akbari while expressing happiness about the move of the house said about 7,000 people will be assigned to ensure security to the project in the country. After the completion of the project Afghanistan would receive 1,200,000,000 cubic meters of gas and it would peak at more than 5 billion cubic meters of gas within five years, Akbari said. "We will have support of a US company and estimations put the cost of the project at around $7.8 billion. And construction work will begin by 2012 and it's expected to be completed by 2014," Akbari said. Naheed Ahmadi Farid, an Afghan lawmaker who See # 1 Page 11
Senate meets today ISLAMABAD: The Senate session would be convened today, Monday at 1600 hrs in Parliament House. The meeting convened by chairman senate Farooq H Naek would be deliberating key issues regarding joint address of President Ali Zardari, law & order situation of Country, and various adjournment motion as floated by senators. Before the meeting, both official and opposition benches would be finalizing their strategy regarding the meeting. -Online
Zardari summons Sindh MPs tomorrow ISLAMABAD: President Asif Ali Zardari has summoned a special meeting of Sindh based Parliamentarians, tomorrow Tuesday, in Islamabad. According to Media Reports the specially convened meeting, President Asif Ali Zardari would be debating the over all political situation of the Country, law and order situation, problems of activists and members and political coalitions. President Asif Ali Zardari would be giving special directives to all participants regarding taking special steps for solving the problems of their respective constituencies, and other party strategy. -Online
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