thefinancialdaily-epaper-1-07-2011 by The Financial Daily

International Karachi, Friday, July 1, 2011, Rajab-ul-Murajjab 28, Price Rs12 Pages 12

Imran hints â&#x20AC;&#x2DC;conditional coalitionâ&#x20AC;&#x2122; with MQM Economic Indicators Forex Reserves (25-June-11) Inflation CPI% (Jul 10-May 11) Exports (Jul 10-May 11) Imports (Jul 10 - May 11) Trade Balance (Jul 10 - May 11) Current A/C (Jul 10- May 11) Remittances (Jul 10 - May 11) Foreign Invest (Jul 10-May 11) Revenue (Jul 10 Apr 11) Foreign Debt (Mar 11) Domestic Debt (May 11) Repatriated Profit (Jul- Apr 11) LSM Growth (Apr 11)

GDP Growth FY10E Per Capita Income FY10 Population

$17.47bn 14.00% $22.45bn $36.55bn $(14.11)bn $205mn $10.10bn $1.74bn Rs 1147bn $59.54bn Rs 5873bn $725mn 0.88% 4.10% $1,051 176.49mn

Portfolio Investment SCRA(U.S $ in million)

Yearly(Jul, 2010 up to 29-Jun-2011) Monthly(Jun, 2011 up to 29-Jun-2011) Daily (29-Jun-2011) Total Portfolio Invest (18-Jun-2011)

237.09 -7.93 -3.51 2825

NCCPL (U.S $ in million)

FIPI (30-Jun-2011) Local Companies (30-Jun-2011) Banks / DFI (30-Jun-2011) Mutual Funds (30-Jun-2011) NBFC (30-Jun-2011) Local Investors (30-Jun-2011) Other Organization (30-Jun-2011)

-31.41 30.31 2.20 -1.12 -0.88 0.83 0.07

Global Indices Index KSE 100 Nikkei 225 Hang Seng Sensex 30 SSE COMP. FTSE 100 *Dow Jones

Close 12496.03 9816.09 22398.10 18845.87 2762.08 5936.13 12401.77

Change 72.73 18.83 336.92 152.01 33.59 80.18 140.35

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Qamar Chairs Economic Coordination Committee

Rs2bn Ramadan Package nodded ISLAMABAD: The Economic Coordination Committee of the Cabinet Thursday approved Ramadan Relief Package envisaging subsidy up to Rs 2 billion to ensure uninterrupted availability of essential food items to people during the holy month. Food items including flour, ghee, oil, dal channa would be provided at subsidized rates while white channa, basen and dates would be available at reduced prices at the outlets of Utility Stores Corporation through out the country. The ECC meeting was chaired by Federal Minister for Water and Power, Syed Naveed Qamar.

Two-day CNG closure in Sindh ISLAMABAD: Economic Coordination Committee (ECC) has decided to defer hike in gas tariff and to keep CNG stations in Sindh closed for two days a week, media reported on Thursday. This was decided in a meeting of ECC chaired by Federal Minister for Water and Power Syed Naveed Qamar. The committee, under gas load management plan, See # 18 Page 11

ECC also approved summaries related to Furnace Oil Blending in Pakistan, Uniform Gas Load Management Policy, Re-lending of KFW Loan for Keyal Khawar Hydro-Power Project in accordance with new re-lending policy of the Government, Tax exemption for WAPDA for Second Sukuk Company Limited, 1100 MW Kohala Hydro Power project and additional security issues of Uch Power Private Limited and extending NOC for awarding of contract to KRL for the development of Uch-II Development Project. On the summary moved by the Ministry of Petroleum and See # 17 Page 11

Govt cuts POL prices Monitoring Desk ISLAMABAD: The government on Thursday night announced cut in petroleum prices by three rupees, media reported. According to the media reports, officials said petrol was reduced Rs3 per liter, High Speed diesel by Rs two per liter while the price of light diesel was slashed Rs1.13. Officials said the prices were slashed in the wake of current reduction in international oil markets. Oil and Gas Regulatory Authority (Ogra) has issued notification in this regard. Earlier it was anticipated that the prices of POL products were likely to be reduced up to Rs 5.45 per liter from July 1. See # 19 Page 11

Zardari vows to fortify China ties

See on Page 12

Govt's steps made Fed firm, says PM

See on Page 12

Visa process for Hajj to begin from 15th

See on Page 12

Returns on NSS unchanged ISLAMABAD: The federal government on Thursday announced that the rates of return on National Saving Schemes shall remain unchanged. The existing rates of return on different National Savings Schemes are 13.55 per cent for Defense Saving Certificates, 13.44 per cent for Regular Income Certificates, 13.33 per cent for Special Saving Certificates Account and 9 per cent for Savings Accounts. See # 15 Page 11

Reserves ease to $17.47bn Staff Reporter KARACHI: Pakistan's foreign exchange reserves fell slightly to $17.47 billion in the week ending June 25, from $17.52 billion a week earlier, the central bank said on Thursday. Reserves held by the State Bank of Pakistan (SBP) fell to $14.02 billion from $14.11 billion a week ago, while those held by commercial banks rose to $3.45 billion from $3.41 billion, the SBP said in a statement. See # 16 Page 11

MQM seeks Opp benches Submit applications in NA, Senate ISLAMABAD: The Muttahida Qaumi Movement (MQM) on Thursday submitted separate applications in the National Assembly and Senate secretariats for allocation of seats in the opposition benches after it quit the federal and provincial governments. MQM deputy parliamentary leader Haider Abbas Rizvi submitted the application to the NA Secretariat and Senator Col Tahir Hussain Mashhadi submitted applications to Senate Secretariat. It may be recalled here that

the strength of the MQM in the Sindh Assembly is 51 MPAs, while there are 25 MQM members in the National Assembly and six in Senate. Talking to media men MQM deputy parliamentary leader said that his party has become party of opposition after submitting application for allocation of seats in the Opposition benches in Upper and Lower Houses. It was very difficult to continue alliance with government, he said. See # 13 Page 11

'Without Nestle KSE rises 21pc'

KSE adds 28.5pc during FY10-11 Ahmed Siddique KARACHI: The Karachi Stock Exchange has shown a decent performance during the fiscal year 2010-11 as the benchmark KSE 100-Index while gaining 28.5 per cent ended at 12,496 points. Though the overall capital market environment was depressing in the outgoing fiscal year 2010-11, benchmark

KSE 100-Index gained 28.5 per cent (including dividends). Interestingly, the consumer giant Nestle Pakistan, which is hardly owned by few investors, contributed 26 per cent to this gain. Nestle's volume last year was just 1100 shares a day and its price jumped by 228 per cent. In spite of this headline increase in Index, there must be See # 14 Page 11

2 Friday, July 1, 2011

FPCCI head writes to Indian counterpart

India urged to help Pak for WTO grants

ISLAMABAD: Advisor to Prime Minister on Human Right Mustafa Nawaz Khokar addressing during a National Education Seminar organized by Private School Network at Islamabad. -INP

IFC, HBL join hands to uplift SME sector ISLAMABAD: International Finance Corporation (IFC), a member of the World Bank Group, is helping improve access to finance and support the growth of small businesses in Pakistan through an agreement with Habib Bank to expand the bank's small business lending programs. According to a statement of the IFC issued here on Thursday, IFC and Habib Bank will initially target the Lahore region-home to 45 percent of the country's small and medium businesses-where IFC will help Habib Bank design and roll out financial services and banking products aimed at small businesses. These products and services will then be launched country-wide through Habib Bank's extensive branch network. "This mandate will not only help Habib Bank better serve the small and medium-sized business sector in

Pakistan, but will also improve our procedures and develop the capacity of Habib Bank to support this market segment as it continues to grow," said Mubashar Maqbool, Head of Habib Bank's Commercial & Retail Lending Department. Kaiser Nasseem, Head of IFC's Bank Advisory Services in the Middle East and North Africa region, said, "Through this project with Habib Bank, IFC is helping expand small businesses' access to finance and supporting sustainable economic growth in Pakistan. The small business sector is a driver of job creation and economic growth, and supporting it is an important part of IFC's work." Many banks regard lending to small and medium businesses as risky and lack the tools and techniques to efficiently serve them. By helping improve Habib Bank's ability to offer financing to these

businesses, IFC's participation will demonstrate the benefits of lending to this market segment to other banks in Pakistan. With over 1,450 domestic branches, Habib Bank has the strongest retail banking network in the country. This network, coupled with Habib Bank's long experience serving the small and medium enterprises will enable Habib Bank to develop and deliver the new products. Pakistan is a priority country for IFC. For the past three years, IFC's investments and advisory services work have increased in Pakistan to promote private sector growth. IFC's strategy in Pakistan for fiscal years 2009 to 2011 focuses on mobilizing investments in power and infrastructure, and providing access to finance to micro, small and medium enterprises through financial intermediaries. -Agencies

KARACHI: Administrator Jamshed Town Syed Aqeel Tazeem Naqvi inspecting â&#x20AC;&#x153;Clean & Green Karachiâ&#x20AC;? campain at Jamshed Town Karachi. -Staff Photo

SAI yells at gas hike proposals KARACHI: Chairman SITE Association of Industry (SAI), Abdul Wahab Lakhani has criticized the Petroleum Ministry for proposing to the Economic Coordination Committee (ECC) for increasing gas prices from 1st July 2011. He said that the proposal does not carry any weightage because the prices of gas were raised in January 2010 of all the sectors including industrial sector. Now the government is planning to increase gas rates by 10-15 per cent for domestic 15-20 per cent for industrial and 100 per cent for fertilizer sector on the advent of the next financial year taking the plea that the over all objective of the gas price rationalization is to bring in uniformity in fuel prices and remove all subsidies so that full cost of gas is recovered from consumers.-PR

DHA plans new university in Khi Staff Reporter KARACHI: The Defence Housing Authority (DHA) will establish a university in the metropolis to be launched from September this year. This was informed at the meeting of the DHA Executive Board held on Thursday chaired by its President, Commander 5 Corps Lt General Muhammad Zahir Ul Islam, at the Corps Headquarters here. The Administrator DHA, Brig Aamer Raza Qureshi, briefed the Executive Board on DHA's mega projects and other administrative cum functional matters of the Authority. The Executive Board gave approval for establishment of DHA `Suffa' University. The DHA constituent colleges with upgraded academic resources/ facilities will form the University campuses. The University is scheduled to be launched in

September this year and the academic session would start from January 2012. President of the Executive Board directed DHA to ensure that University maintains highest educational standards in all its undertakings with strong focus on research activities to make the venture academically and economically viable. The University will initially offer undergraduate/post graduate courses in the disciplines of English, economic, business administration, mass communication and fine arts. However, contemporary science and technology disciplines would soon be added which will be the forte of the new University. Executive Board was informed that a significant headway has been made towards making the Cogen Plant operational which was lying closed since May 2010.

Administrator inspects cleaning work Staff Reporter KARACHI: Administrator Karachi Fazlur Rehman has said that city government has almost completed the cleaning of storm water drains in city and now the citizens would not have any trouble in case of normal rains during monsoon. Still the cleaning of all small and big drains in city will continue. He expressed these views while inspecting the cleaning of storm water drains during a visit of different towns. EDO Municipal Services Masood Alam, Works department officers and concerned town administrator accompanied him on this visit. On the visit of Banaras Chowk, Administrator Karachi directed to speed up development works of flyover and roads beneath and around the bridge so that this could be finished soon and the people residing in the suburban areas could be provided with better transportation facilities. He said city government will make this very important junction beautiful by constructing beautiful and well standard roads here. While inspecting the cleaning of Gujjar Nullah in Liaquatabad, Administrator Karachi directed concerned officials to carry on this work without delay. This drain passes through center of city and its overflow causes difficulties to residents therefore it must be cleaned continuously.

SSUET introduces attendance system KARACHI: The Sir Syed University of Engineering and Technology (SSUET) has introduced biometrics hand punch attendance system. An official of the institution said here Thursday that the implementation of the system was reviewed at a meeting held under the chairmanship of Chancellor ZA Nizami. It was attended among others by Vice-Chancellor Prof Dr Sayed Nazir Ahmed, Faculty Dean Dr Najib Ahmed, Registrar Shah Mahmood Hussain Syed, and Director Finance Munawar Hasan. The meeting was informed that this system will replace the manual card punching attendance system. The salient features include automatic payroll processing, recording of timings of arrival and departing teaching and non-teaching staff. It was pointed out that at present three machines have been installed at three different entry points and each machine can enroll 9,000 users. -APP

I S L A M A B A D : President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Senator Haji Ghulam Ali has asked The Federation of Indian Chambers of Commerce and Industry (FICCI) to support Pakistan get World Trade Organisation (WTO) trade concessions. In a letter to Harish C Mariwala, President FICCI, Senator Ghulam Ali, who is also Vice President Islamic Chamber of Commerce and Industry, said that India's help will help foster trade ties between the two neighbors. India has been opposing trade-concession package offered by the European Union to Pakistan, but is also blocking a move to be counted as a Least

Developed Country (LDC) at the WTO, the letter said. The President of FPCCI further said in the letter that Pakistan says it is an LDC because of the setback to its economy on account of natural calamities and the war on terror. As an LDC, it merits to be eligible for EU concessions which India disapproves that may spoil bilateral ties. "India should not try to harm friendly ties which are being normalized through hard labour," said Senator Ghulam Ali. He asked Mariwala to use his good offices to stop India from opposing concessions to Pakistan. India should no more be in the forefront of a group of nations opposing the move aimed at benefit-

ting Pakistan's economy. 'Mohali spirit,' should not be dogged by the traditional mindset as the visit of Prime Minister Prime Minister Yousaf Raza Gilani, his meeting with Indian counterpart Dr. Manmohan Singh and recent commercesecretary level talks have help melt ice but the confidence building measures are once again being threatened, Senator Ghulam Ali said. He asked FICCI to play role to shun misgivings and ensure an environment that benefit both the neighbors. "India should be happy if Pakistan get a concession that can boost our ailing economy as a stable Pakistan is also in the New Delhi's interest," the letter concluded. -Agencies

KARACHI: ZONG host a lunch in honour of Matthew East, Chairman International Student Identity Card (ISIC) Association on his visit to Pakistan at the occasion of ISIC launch in Pakistan. Picture show East (Sitting Center), Amer Siraj (Sitting 3rd L) along with ZONG and Alive Asia officials. -Staff Photo

ISLAMABAD: Federal Minister for Information and Broadcasting Dr Firdous Ashiq Awan in a group photo with the officials of Ministry of Information and Broadcasting on the eve of inauguration of Electronic Media Relations Wing (EMRW) at PID. -APP

KARACHI: The Golden Jubilee media launch of ICAP was held in Karachi. Picture shows (L-R): Members Conference Committee Nadeem Yousuf and Adnan Zaman; Hafiz Mohammad Yousaf, VP (North); Zahid Bhatti, VP (South) ICAP; Pervez Muslim, Chairman Conference Committee ICAP and Shoaib Ahmed, Secretary ICAP. -Staff Photo

KARACHI: Corp Commander Lt Gen Muhammad Zahirul Islam presideing over the DHA Executive Board Meeting held at Headquarter 5 Corps. PR

Friday, July 1, 2011 Top Economic Events

Euro rises broadly as Greece passes austerity plan

Time 4:30 4:30 4:50 6:00 13:00 13:30 14:00 18:55 18:55 19:00 19:00

Greece passes second austerity law, fears ease for now NEW YORK: The euro rose against the US dollar on Thursday and headed for a second quarterly gain as Greece passed crucial bills to avert immediate default and on expectations that euro-zone interest rates will rise again next week. Month-end flows also supported the euro, helping propel it to a three-week high above $1.45 earlier in the session. The euro also climbed to a 15-month high against a broadly weaker sterling and jumped to a two-week high versus the Swiss franc. Greece approved detailed austerity and privatization bills on Thursday in a crucial vote to secure emergency international aid. But analysts said longer-term dangers still lurk with credit insurance markets pricing in an 80 per cent chance of Greece defaulting within five years.

The euro climbed to a high of $1.4522 on trading platform EBS, but it was unable to hold gains above resistance at $1.45 and retreated to $1.4487, still up 0.4 per cent on the day. The euro is on track for a 2.4 per cent gain this quarter and an 8.2 per cent gain in the first half of the year. Traders cited offers from sovereign names ahead of a reported options barrier at $1.4550. Support is seen in the mid-$1.44 region.. Some analysts said the euro could rally towards $1.5000, but many remained wary about whether Greece will be able to implement harsh austerity measures

and expected the euro's rise to be limited. Investors will now likely turn attention to talks on private-sector participation in a new Greek assistance program.

German Finance Minister Wolfgang Schaeuble said he had reached agreement with German banks and he expected a euro-zone deal on Sunday, based on a French plan for a voluntary debt rollover. The euro rose 0.5 per cent to 90.30

Asian currencies

Won at 2-mth high, ringgit breaches resistance local stocks. Exporters also purchased the local currency. Importers bought dollars, especially under 1,070 per dollar, but their dollar demand was absorbed by supplies from offshore investors. Some investors were wary of possible dollar-buying intervention by the foreign exchange authorities to slow down the currency's strength, others downplayed the possibility. Earlier this month, authorities were spotted selling dollars to cap the won's weakness, according to dealers. The South Korean currency strengthened to as firm as 1,067.3, the strongest since May 2. It has room to fall more, probably to the dollar/won's low of 1,064.9 on May 2, but it has a firm support at 1,057, dollar/won's high on July 2, 2008, days before the pair fell

below 1,000 line. The ringgit briefly breached a 55-day moving average as interbank speculators bought it with the euro's rebound to above $1.45. Continuous expectations of inflows for Bumi Armada's initial public offering next month also supported the Malaysian currency. The ringgit appreciated as much as 0.7 per cent to 3.0115 per dollar, breaking through the average of 3.0155. The ringgit may strengthen further, but it will face resistances around 2.98003.0000. The Singapore dollar gained 0.4 per cent against the US dollar on demand of leveraged funds and stop-loss sales of the greenback. The city-state currency may strengthen further, probably to 1.2265, the low of US dollar/Singapore dollar on June 7. -Reuters

Sterling falls broadly as bearish bets rise

Swiss franc down vs euro after Greek vote

SINGAPORE: The South Korean won hit a near two-month high and the Malaysian ringgit breached a technical resistance on Thursday as real money accounts and leveraged funds bought emerging Asian currencies after Greece moved a step closer to international aid and avoid default. The ringgit edged up 0.4 per cent against the dollar in the second quarter, compared with a 1.8 per cent advance in JanuaryMarch period. With increasing hopes on an aid to Greece, emerging Asian currencies are expected to gain momentum, dealers and analysts said. The won hit a near twomonth high against the dollar as offshore players such as real money accounts chased it and foreign investors kept buying

LONDON: Sterling slid to a 15month low against a tradeweighted basket of currencies and the euro on Thursday on month- and quarter-end selling, with more losses likely as investors add to bearish bets on the view that UK rates will stay low in the near term. The single currency was boosted by news that Greece's parliament had approved a second bill of austerity measures and by

favourable interest rate differentials. European Central Bank President Jean-Claude Trichet reiterated his hawkish bias towards inflation, backing strong market expectations that the bank will raise rates next week. The euro rose to 90.705 pence, its highest level since midMarch 2010, with traders citing steady month-end demand from a euro-zone central bank and a US investment bank. It was last trading at 90.40 pence and a close above the early May high of 90.43 pence would be seen as technically

bullish, potentially allowing a test of the March 1, 2010 high of 91.50 pence then the late Oct, 2009 high of 92.40 pence. Analysts said the approval of the austerity measures had put to rest immediate worries about a default by Greece and the risk of contagion. This was likely to give a short term boost to riskier currencies. Investors will turn their attention to the next policy meeting of

the European Central Bank, which in contrast to the Bank of England, is in the midst of monetary tightening. Sterling losses against the euro saw it give up gains against the dollar and put it on track for its worst monthly percentage fall since November. It hovered near its 200-day moving average of $1.6039, down 0.1 per cent on the day. It had fallen to as low as $1.5973 with traders citing offers below $1.5970 while on the upside option expiries at $1.6120 are likely to check gains. -Reuters

ZURICH: The Swiss franc fell against the euro on Thursday after Greece's approval of austerity measures reassured markets and prompted investors to move into riskier assets. The Swissie is seen as a safehaven investment and as a result it has risen strongly due to the uncertainty in the eurozone, but growing risk appetite pushed it below the 1.20 barrier versus the euro on Thursday. At 0752 GMT, the franc was 0.4 per cent lower against the euro compared to the New York close, trading at 1.2086 per euro, pulling further away from a record of around 1.1808 hit earlier this week. St. Gallen Kantonalbank analysts said in a note the Greek approval of the individual laws in the austerity package could push the euro up to about 1.22 francs per euro. "That level should be used to sell (the euro) as the trend continues to be downwards," they added. Against the dollar, the franc was near flat, trading at 0.8341 per dollar. Switzerland's economy minister said on Wednesday the strong Swiss franc was not a temporary phenomenon and the government was doing everything possible to support the country's export industry. Reuters

NZ$ hits post-float high, Aussie jumps to 26-yr top vs stg WELLINGTON/SYDNEY: The New Zealand dollar powered to a post-float high against the greenback on Thursday, while the Australian dollar scaled a 26-year peak on sterling as investors piled into risk assets after Greece moved a step closer to securing emergency loans. While markets had positioned for such an outcome, what little profit-taking that emerged on a 'buy-the-rumour-sell-the-fact' move was quickly overcome buy fresh buying, traders said. This saw the kiwi rise to $0.8320, the highest since the currency was floated in March 1985, surpassing the previous peak around $0.8301 set on June 9. A raft of local data was generally positive and pointed to a pick up in activity in the second half of the year. Similarly, the kiwi surged against sterling, touching a 26-year post-float high at NZ$1.9374 per pound. It also notched reasonable gains against the euro and yen. The trade weighted New Zealand dollar gained 1.2 per cent against a basket of five main

currencies to its highest level in three years. The kiwi, however, was little changed against the Aussie, which kept pace with its gains. The Aussie bought NZ$1.2946, compared with NZ$1.2936 on Wednesday. The Aussie last traded at $1.0737, having risen as high as $1.0751, up more than half a cent from late New York levels. The rally from an 11week low around $1.0390 on Monday has probably flushed out a lot of short positions. Technically, this rise has seen the Aussie break out of a wedge formation in the charts, easing the threat of a downside test as signalled by a recent bearish trend of lower highs and lower lows. Immediate resistance is seen at $1.0775, the June peak and also the 61.8 per cent retracement of the May 2-June 27 decline. Sterling slid below A$1.5000 for the first time since 1985, reaching a low around A$1.4984. Against yen, the Aussie hit a four-week high of 86.49 amid talk of Japanese demand at the Tokyo fix, in part from newly launched toshins. -Reuters

pence, having hit a 15-month high of 90.70 pence, the strongest level since March, 2010. It rallied 1.4 per cent to 1.2211 Swiss francs. The dollar was flat at 80.75 yen, on track for a loss of 2.9 per cent this quarter and a 0.6 per cent loss for the first half of this year. The European single currency also found support after the European Central Bank signaled it would raise interest rates again next week as data showed inflation in June well above the bank's target. Increasing concerns about the US debt situation could also sour sentiment for the dollar as Washington struggles to raise its budget limit. The New Zealand dollar earlier climbed as high as $0.8320, its strongest level since it was floated in 1985. -Reuters

Yuan ends flat, posts H1 gain of 1.9pc SHANGHAI: The yuan ended flat against the dollar on Thursday, locking in a 1.94 per cent gain for the first half of the year, a relatively slow pace of appreciation that traders expect to quicken in the second half. Many mainland forex traders started out the year expecting the yuan to gain by around 3 per cent in the first half, but uncertainty in global markets prompted Beijing to be more conservative in letting it rise, they say. The yuan closed at 6.4640 on Thursday, a rise of just 0.2 per cent for the month of June following a similar pace of gain in May and compared with a 0.9 per cent rise it marked in April. The slowdown in appreciation has coincided with renewed concerns over default by some European governments on their debt. Several forex dealers said they expect the pace of appreciation to pick up again in the second half as some of those worries subside, potentially gaining 3-4 per cent in the final six months of the

year. Bank of China Ltd said in a report on Thursday that China is "very likely" to widen the daily trading band of the yuan against the dollar to introduce greater currency flexibility in the near term. Dealers also reported that settlement demand at the end of the first half was boosting the yuan a bit. Spot yuan traded between 6.4629 and 6.4680 versus the dollar, above the daily midpoint and little changed from Wednesday's close of 6.4635. Before trade began the PBOC set the yuan's midpoint at 6.4716 versus the dollar, only two pips stronger than Tuesday's 6.4718. The Chinese currency has appreciated 5.6 per cent since it was depegged from the dollar in June 2010. Benchmark one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.3840 in late trade, unchanged from the previous day's close. Their implied yuan appreciation in a year's time was at 1.37 per cent. Reuters

Indian rupee snaps 3 qtrs of rising trend MUMBAI: The Indian rupee weakened in the Junequarter, ending a three straight quarterly rise, as local shares dragged, but the euro's surge during the period helped limit the fall, traders said. Global oil prices and progress of the south-west monsoon would be key to the rupee's direction in the September quarter, they said. The partially convertible rupee ended 44.6950/7050 per dollar, 0.4 per cent higher from Wednesday's close of 44.86/87, but 0.25 per cent weaker quarter-on-quarter. "In the current scenario, rupee is seen in 44.50-44.80 range and could breach 45 if our imports on account of oil really start hitting and there is not much corresponding capital inflows," said Ashutosh Khajuria, president of treasury at Federal Bank. "Rupee could touch 45.80 (per dollar) only if oil prices stay above $100 a barrel and there is poor monsoon at home. But the rise will be

capped at 46." The one-month onshore forward premium was 24.50 points versus 24.25 last close, the three-month at 74.50 points from 73.50 and the one-year was at 253.50 points from 249. One-month offshore nondeliverable forward contracts were quoted at 44.84, weaker than the onshore spot rate. In the currency futures market, the most traded nearmonth dollar-rupee contracts on the National Stock Exchange were at 44.8850, and on the MCX-SX and the United Stock Exchange both were at 44.8875. The total volume was at $8.49 billion. -Reuters

Source JPY JPY JPY CNY EUR GBP EUR USD USD USD USD

Events Household Spending y/y Unemployment Rate Tankan Manufacturing Index Manufacturing PMI Final Manufacturing PMI Manufacturing PMI Unemployment Rate Revised UoM Consumer Sentiment Revised UoM Inflation Expectations ISM Manufacturing PMI Construction Spending m/m

Forecast -1.7% 4.8% -7 51.6 52.0 52.2 9.9% 72.0 51.9 0.1%

Previous -3.0% 4.7% 6 52.0 52.0 52.1 9.9% 71.8 4.0% 53.5 0.4%

Actual

Forecast

-25 50.7 -2.8% 0.0% -1.5% -8K 2.7% 2.7% 0.0%

0.6% 0.1% 1.0% -17K 2.8% 2.8% -0.1%

Previous Day Source

Events

GBP JPY EUR GBP EUR EUR EUR EUR CAD

GfK Consumer Confidence Manufacturing PMI German Retail Sales m/m Nationwide HPI m/m French Consumer Spending m/m German Unemployment Change Private Loans y/y CPI Flash Estimate y/y GDP m/m

-23

-21 51.3 0.0% 0.3% -1.2% -8K 2.6% 2.7% 0.3%

Currencies Rate Name EUR-USD USD-CHF GBP-USD USD-CAD AUD-USD EUR-JPY EUR-GBP EUR-CHF GBP-JPY CHF-JPY Gold

As per 22.00 PST Ask High 1.4467 1.4522 0.8401 0.8401 1.5996 1.6112 0.9670 0.9700 1.0726 1.0751 116.34 116.95 0.9044 0.9068 1.2153 1.2156 128.71 129.84 95.84 96.97 1508.87 1513.69

Bid 1.4464 0.8398 1.5992 0.9666 1.0723 116.31 0.9041 1.2149 128.63 95.77 1508.12

Low 1.4431 0.8309 1.5970 0.9649 1.0671 116.14 0.8987 1.2034 128.47 95.77 1506.40

London Inter Bank Offered Rates (LIBOR) Karachi: The following are the London Inter-Bank Offered Rates (LIBOR). British Members Association Interest Settlement Rates. AT 11:00 LONDON TIME 1/07/2011 A USD GBP CAD EUR JPY O/N 0.12800 0.67125 0.98833 1.78000 SN 0.10594 1WK 0.16075 0.59563 1.00917 1.13938 0.11469 2WK 0.16950 0.60063 1.03500 1.18063 0.12219 1MO 0.18555 0.63094 1.07500 1.28125 0.14000 2MO 0.21725 0.70188 1.11667 1.35688 0.15844 3MO 0.24575 0.82563 1.17417 1.49063 0.19531 4MO 0.28725 0.89813 1.23917 1.56063 0.24156 5MO 0.34290 1.00250 1.29917 1.65125 0.29719 6MO 0.39775 1.10438 1.35333 1.75813 0.34156 7MO 0.45450 1.18813 1.43750 1.81988 0.39031 8MO 0.50825 1.27219 1.50917 1.88513 0.43719 9MO 0.56375 1.35719 1.58000 1.94788 0.48031 10MO 0.62250 1.43844 1.66333 2.01238 0.51031 11MO 0.67550 1.51031 1.75500 2.06813 0.53594 12MO 0.73350 1.57875 1.85167 2.13750 0.56000

Major Central Banks Overview Central Bank

Next Meeting

Last Change

7/19/2011 7/7/2011 7/12/2011 7/7/2011 8/9/2011 9/15/2011 7/5/2011

9/8/2010 3/5/2009 12/19/2008 4/7/2011 12/16/2008 3/12/2009 11/2/2010

Bank of Canada Bank of England Bank of Japan European Central Bank Federal Reserve Swiss National Bank The Reserve Bank of Australia

Current Interest Rate 1% 0.50% 0.10% 1.25% 0.25% 0.25% 4.75%

Division of National Bank of Pakistan (NBP) KARACHI, July 1,2011 Treasury Management Division of National Bank of Pakistan (NBP) Monday issued the following Exchange rates: Countries Selling Buying Buying TT & OD TT Clean OD/T.CHQ U.S.A. U.K. EURO CANADA SWITZERLAND AUSTRALIA SWEDEN JAPAN NORWAY SINGAPORE DENMARK SAUDI ARABIA HONG KONG KUWAIT MALAYSIA NEWZEALAND QATAR U.A.E. KR WON THAILAND

86.05 138.62 124.89 88.94 103.59 92.40 13.64 1.07 16.03 70.04 16.74 22.95 11.06 312.49 28.51 71.49 23.63 23.43 0.08 2.80

85.85 138.30 124.60 88.73 103.35 92.19 13.61 1.07 15.99 69.88 16.70 22.89 11.03 311.76 28.44 71.32 23.58 23.37 0.08 2.79

85.63 137.92 124.23 88.50 103.07 91.95 13.58 1.06 15.95 69.69 16.66 22.83 11.00 310.94 28.36 71.14 23.51 23.31 0.08 2.79

Revaluation Rates Treasury Bills / PIBs / FIBs Holding Applicable for July 1, 2011

KASB 0-7days 13.25 8-15dys 13.25 16-30dys 13.30 31-60dys 13.38 61-90dys 13.40 91-120dys 13.55 121-180dys 13.64 181-270dys 13.75 271-365dys 13.85 2-- years 13.97 3-- years 14.00 4-- years 14.03 5-- years 14.05 6-- years 14.05 7-- years 14.07 8-- years 13.75 9-- years 14.07 10--years 14.08 15--years 14.25 20--years 14.28

BMA 13.50 13.35 13.38 13.40 13.41 13.52 13.65 13.76 13.86 13.93 13.98 14.06 14.06 14.06 14.05 13.70 14.06 14.11 14.30 14.40

ELXIR 13.50 13.45 13.45 13.44 13.40 13.54 13.68 13.77 13.86 14.00 14.01 14.04 14.04 14.13 14.13 13.69 14.08 14.09 14.22 14.28

GSL 13.50 13.35 13.30 13.40 13.35 13.58 13.67 13.77 13.85 13.92 13.99 14.00 14.03 14.06 14.11 13.65 14.07 14.07 14.32 14.52

ICSL 13.50 13.50 13.35 13.40 13.45 13.50 13.66 13.70 13.85 13.95 13.97 14.03 14.03 14.07 14.07 13.60 14.08 14.08 14.20 14.30

JSCM AvgRate 13.60 13.48 13.40 13.38 13.35 13.36 13.38 13.40 13.43 13.41 13.58 13.55 13.65 13.66 13.78 13.76 13.86 13.86 13.97 13.96 14.00 13.99 14.02 14.03 14.05 14.04 14.07 14.07 14.08 14.09 13.75 13.69 14.08 14.07 14.09 14.09 14.15 14.24 14.20 14.33

Currencies Correlation EUR/JPY Period 1 1 3 6 1 2

AUD/USD EUR/CHF EUR/GBP EUR/USD GBP/USD NZD/USD

week month months months year years

0.28 0.79 0.08 0.72 0.66 -0.45

0.69 0.76 0.83 0.11 -0.14 0.85

0.80 0.15 0.34 0.78 0.78 0.67

0.86 0.92 0.58 0.88 0.85 0.70

0.52 0.81 0.49 0.81 0.79 0.51

USD/CAD USD/CHF

-0.18 0.57 -0.40 0.43 0.62 -0.40

-0.47 -0.52 -0.78 -0.87 -0.72 0.56

0.29 -0.25 0.58 -0.56 -0.64 0.29

Karachi Inter Bank Offered Rates (KIBOR) Karachi: The following are the Karachi Inter-Bank Offered Rates (KIBOR)1/07/2011 1WEEK

2 WEEK

1 MONTH

3 MONTH

6 MONTH

9 MONTH

1YEAR

2YEARS

BID

ASK

BID

ASK

BID

ASK

BID

ASK

BID

ASK

BID

ASK

BID

ASK

BID

ASK

ABLN 13.25

13.75

13.20

13.70

13.20

13.70

13.35

13.60

13.70

13.95

13.70

14.20

13.75

14.25

13.85

14.35

JSBL

13.30

13.80

13.30

13.80

13.25

13.75

13.35

13.60

13.85

13.70

14.20

13.80

14.30

13.90

14.40

ASPK 13.25 CIPK

13.75

13.20

13.70

13.25

13.75

13.30

13.55

13.80

13.65

14.15

13.75

14.25

13.85

14.35

13.10

13.60

13.00

13.50

13.00

13.50

13.25

13.50

13.75

13.60

14.10

13.70

14.20

13.80

14.30

DBPK 13.00

13.50

12.90

13.40

12.95

13.45

13.25

13.50

13.45

13.70

13.60

14.10

13.70

14.20

13.80

14.30

FBPK 13.25

13.75

13.25

13.75

13.10

13.60

13.35

13.60

13.55

13.80

13.60

14.10

13.70

14.20

13.90

14.40

FLAH 13.25

13.75

13.15

13.65

13.10

13.60

13.30

13.55

13.80

13.65

14.15

13.75

14.25

13.85

14.35

HBPK 13.10

13.60

13.10

13.60

13.15

13.65

13.30

13.55

13.80

13.65

14.15

13.75

14.25

13.85

14.35

HKBP 13.20

13.70

13.15

13.65

13.10

13.60

13.25

13.50

13.55

13.80

13.65

14.15

13.75

14.25

13.85

14.35

NIPK

13.10

13.60

13.10

13.60

13.10

13.60

13.20

13.45

13.30

13.55

13.40

13.90

13.50

14.00

13.60

14.10

HMBP

0.00

SAMB 13.15

13.65

13.15

13.65

13.20

13.70

13.25

13.50

13.75

13.65

14.15

13.80

14.30

13.85

14.35

MCBK 13.20

13.70

13.00

13.50

13.00

13.50

13.30

13.55

13.60

13.85

13.70

14.20

13.75

14.25

13.80

14.30

NBPK 13.30

13.80

13.30

13.80

13.20

13.70

13.25

13.50

13.75

13.70

14.20

13.80

14.30

13.90

14.40

SCPK 13.15

13.65

13.00

13.50

13.00

13.50

13.30

13.55

13.80

13.60

14.10

13.75

14.25

13.80

UBPL 13.10

13.60

13.10

13.60

13.15

13.65

13.30

13.55

13.50

13.75

13.60

14.10

13.70

14.20

13.90

14.40

AVE

13.68

13.13

13.63

13.12

13.62

13.28

13.53

13.78

13.64

14.14

13.74

14.24

13.84

14.34

13.18

14.30

Friday, July 1, 2011

The Financial Daily International

Is Our Market Really Growing

Vol 4, Issue 239

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

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

Making central bank vibrant While celebrating anniversary of the creation of Pakistan's central bank, it is necessary to highlight the importance of its autonomy. Though, on books the central bank enjoys the full autonomy, the reality is contrary. Of lately, one of its biggest functions seems to be conducting OMOs and auction of Treasury Bills and Pakistan Investment Bonds. Similarly, in an attempt to contain inflation in the country, the tight monetary policy stance has been followed but the success has been limited, mainly because Pakistan suffers from cost-push inflation, which can't be contained by following tight monetary policy. It has been observed that the government has not been able to contain its expenses, which lead to excessive borrowing. Interestingly the central bank has issuing cautions but could do little. It seems almost impossible that the central bank could refuse to obey the orders of ministry of finance. One such example is that on each Treasury Bills auction a target is announced but hardly adhered to because the quantum of acceptance is determined by the ministry and not the bank. The extra appetite for funds often results in higher cutoff yields. One of the latest decisions of the central bank instructing the commercial banks to abolish the condition of minimum balance and also imposing penalty for not meeting this requirement deserves appreciation. For years accountholders have been full of complaints but the central bank could do little as it was said that banks were free in determining service charges. Earlier, the central bank has taken a courageous step when it made payment of 5 per cent return on deposits mandatory. However, banks fiddled by determining profit of monthly average/end of the quarter balance rather than daily balance. This allowed them to pay the least to the depositors. The credit for increasing lending to the agriculture sector also goes to the central bank. The banks have failed in meeting agri-lending target and only they could be held responsible for the prevailing. One could still recollect the days when commercial banks were willing to pay the penalty than extending credit to the farmers. The security of agriculture loans could have been ensured through crop insurance. However, the banks at the best are insuring credit and not the crops. It is necessary to mention that crop insurance can't be made successful without active participation of the government. It is also necessary to point out that the interest rates being charged on agri loans, micro finance and housing finance are very high. These types of loans are need of the time. Many countries have faced precarious situation as they could not ensure food security. Similarly, small and medium enterprises are considered backbone of the economy. Therefore, there is an urgent need to increase lending to these priority sectors.

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.

Faheem Akhtar

hile giving concluding remarks in an academic activity of a business and administration institute one of the political figure in the capacity of honourable guest proudly marked the contribution of his party in healing wounds of national economy in nutshell and one of the supporting logic to his argument was prospering stock market activities in which index has multiplied its value by three times in same number of years. The guest speaker was not wrong in figuring out numbers but it fails to test the truth specially form the views and mind of students with sharp minds, richly blessed inquisitiveness and broader vision. This also triggered a brainstorming and heat able debate amongst youth. A student with good knows how of stock market blasted that we were a very highly traded market and had gone back nine years in terms of volumes in the outgoing financial year. Average daily volumes in the cash and futures market of Rs 4.4 billion a day in the outgoing financial year was

down 40 per cent from fiscal 2010 mainly led by the absence of big players due to their specific issues and individual concerns on the new tax. Is it really exceptional and needs attention because as far as I know investment activities throughout world as a whole are on declining side, one of the youngee playing with his cell phone shouted to mark the participation. True, But Pakistan is lagging far behind lowest in Asia even from the Bangladesh market which is in the initial stage of capital market reforms. I think there is no IPOs these days, one of the student with least interest in market affairs asked. There are and there have been a few regular IPOs in near past but the traditional feve r and craze of collecting NIC of kiths and kin and filling out application is no more there. Efforts to exempt CGT seems to be dieing natural death but users guide for CGT issued by CBR is more like a technical manual of Chinese made electronics. This is indeed a nicely prepared and presented document with well done for those contributed but its users needs to go through at least week formal training .

One of the girl student added that she knows many stock brokerage house are planning to shut down their operation only because they have nothing to do. Some of the old and seasonal stock market members themselves are spending most of the time on social networks making effort to inspire or impress people with their knowledge and wisdom and spending time in search of good and pretty faces because they have nothing to do. Another fellow marked his participation by contributing that Pakistan was downgraded in equity markets of the world by MSCI after the crash of 2008 from the list of emerging markets where it remained for a long period of 14 years and its upgradation to emerging market remains a dream coming far from reality while UAE much younger in age may take the status of emerging market to whom we taught the basics. In frontier markets we are graded along Bangladesh, Sri Lanka and Vietnam. There was no leader there but only students when all this debate was taking place but they are the leaders of future. The have the concerns, they under-

stand the issue and are going to take smart steps when ever opportunity is given. Time never waits and this is the right time to cure the aliment as we can not wait for our youth for this. We should not live in fallacies and fools paradise that our market is growing rather it is shrinking, declining and sinking. One quarter of portfolio of our market is with foreign investor is not a guaranteed and all time sustainable investment and could be taken out any time when relatively better opportunity seems any where in the world. Additionally consistent decline in volumes reflects gradual loss or lack of interest of investors. There is a definite need to focus on stock market growth and it can only happen when a plan is devised whole heatedly to attract inland and foreign investors by facilitating them along with assurance of complete protection of their funds. Mere upward move of index do not depict growth of a market it is enhanced and sustainable activities coupled with investors confidence reflects growth.

Saudis Need To Undercut Russia To Sell Asia * Saudis struggle to sell additional oil in Asia * Rising Russian supply to force Saudi prices down * European refiners eye ESPO rather than Saudi crude

op exporter Saudi Arabia is struggling to sell more crude to Asia because rival producer Russia has taken an expanding share of the world's fastest-growing market by pumping more oil into the region. To get an edge in the competition with Russia and ship more barrels into Asia, the Saudis will have to take the next painful step in reducing global oil prices -- slashing their own. The kingdom has ignored opposition from fellow OPEC members and moved to boost oil supplies to cool prices that have slowed economic growth. Most of any increase in Saudi supplies would flow eastwards to feed rapid Asian economic expansion. Russian supply to northeast Asia is almost five times more than in 2008 as crude flows through Russia's East SiberiaPacific Ocean (ESPO) pipeline. "Not only will the Saudis need to amend official selling prices (OSPs) to a level that would entice refiners, but you may also see competition from alternatives," said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas in London. "And if ESPO keeps building up, the pressure keeps on growing."

A glut in North American crude markets has made it unprofitable to send ESPO crude to the U.S. West Coast, leaving more supply in Asia. The U.S. typically absorbs the surplus. The emergency release of oil stocks by International Energy Agency members Japan and South Korea, two of the region's top consuming nations, is adding even more oil to the market. With so much crude on offer, refiners have been reluctant to sign up to buy more from Saudi Arabia. ESPO is also higher quality than most Saudi crude, giving refiners that lack capacity to process heavier crude little incentive to buy more Arab grades. Oil pumped through the ESPO pipeline has changed the game in Asia, previously almost captive to Middle East sellers. Russia sells 300,000 bpd to China, while another 600,000 bpd can be shipped to the Pacific and onto the Americas and even Europe. OPEC member Saudi Arabia and independent producer Russia pump almost a quarter of the globe's crude, each holding a similar share of about 10 million bpd. While the Saudis have restrained output since the financial crisis with OPEC

agreements, Russia's nonalignment has allowed it to pump freely. RUSSIAN ESPO Russia is pumping ESPO crude directly to China through a new pipeline section that opened this year, obviating the need for some imports from Saudi Arabia. In addition, rising exports of east Siberian oil through the Russian Pacific port of Kozmino have gained acceptance among refiners in three continents. "Saudi Arabia and Russia will always be competing for market share in most regions," said John Vautrain, director at Purvin & Gertz energy consultants in Singapore, adding that "from a geopolitical perspective, they both have interests to supply a diversified base of customers in Europe, Asia, and the U.S." "The waterborne nature of ESPO from Kozmino is allowing Russia to target northeast Asian markets that it could not reach economically before, and it's also better quality than most of the Saudi crude," Vautrain said. Five ESPO cargoes due to load in Kozmino by early August have yet to be sold as the arbitrage to the U.S. West Coast remains closed. More supplies are adding to that surplus this week, with

tenders for late-August and early-September lots. The release of crude from the Strategic Petroleum Reserve in the United States may keep the arbitrage closed. Tightness for Brent-related grades in Europe because of Libya's civil war and wide discounts for crude priced off the Dubai benchmark, including ESPO, have created unprecedented opportunities for east Siberian cargoes to move as far away as Spain, at least on paper. That could mean more Russian crude produced halfway round the world and priced off Dubai is shipped to fill a gap that the Saudis could not plug in the Mediterranean. "The ESPO quality is closer to the Libyan crude," a trading source familiar with purchases of Saudi crude said. "It's also attractive versus crude from West Africa, which is linked to more expensive Brent." The discount of Dubai crude to Brent widened to $9.20 a barrel on June 15, the biggest since October 2004, less than a week after the Saudis signalled they would increase supplies to Asia. That discount prompted Repsol-YPF, Spain's largest oil company, to buy a cargo of ESPO Blend. "There may be more opportunistic purchases of ESPO

Blend by European refiners subject to freight conditions," Tchilinguirian from BNP Paribas said. "Brent is supported by a limited spare production capacity in light quality crude and Dubai will be kept under pressure as OPEC Gulf producers try to place additional medium to heavy barrels in the market." The competition for market share in Asia is the latest in a long tussle between the two giants of the oil producing world. Moscow provoked the ire of some OPEC members after failing to deliver on pledges to trim output in line with record cuts by the Organization of the Petroleum Exporting Countries in late 2008. The race between the two to conquer the Asian oil market could benefit consumers from China to the U.S. as it puts pressure on prices just as the global economic recovery falters under the burden of high energy costs. "There has never really been much cooperation between Russia and OPEC," said Greg Priddy, global oil analyst at Eurasia Group in Washington. "The Saudis have never expected Russia to cooperate or share their burden as a swing producer." -Reuters

Weak Economy Shadows Obama * Obama weak even in states where unemployment lower * Voting on perception of country's direction * Obama leads polls, but 2012 race seen tougher than 2008

bright spot for President Barack Obama in the bleak U.S. economic picture should be that many of the "swing" states crucial to his 2012 re-election bid are weathering the recession relatively well. But unfortunately for Obama, voters in those states are just not seeing the light. Voters in Virginia, Pennsylvania and some other battlegrounds where the election will likely be decided are not optimistic about the economy, even though their rates of unemployment -- the most politically sensitive economic statistic -- are below the 9.1 percent national rate. Americans tend to blame Washington for nationwide economic problems, so Obama will face a tough fight to turn the economic data to his advantage in states where he and his eventual Republican rival will be focusing most of their attention. "People tend to vote based on their perceptions of the state of the economy, and the national news dialogue is about the struggling economy and high unemployment, so even in the swing states that are doing better that's reality for most voters," said Mark Rozell, a political scientist at Virginia's George Mason University. "Americans ... tend to look to presidents as managers of the national

economy and if Virginia's doing better, I think (Republican Governor) Bob McDonnell gets the credit in the minds of the voters," he said. Among states seen as neither firmly Democratic nor Republican ahead of the November 2012 vote, Virginia has a 6.0 percent unemployment rate and Pennsylvania and Wisconsin are both at 7.4 percent. Obama, a Democrat, won all three - as he did most of the swing states -in 2008 when he soared to the White House in a campaign fueled largely by voter unhappiness over the weak economy under his Republican predecessor George W. Bush. But since that election, Republicans have won governors' races in Virginia, Pennsylvania and Wisconsin, and the states' congressional delegations have turned more Republican. Polls also show voters there are worried about the economy, and view the Democratic president less favorably. "It's all comparative and it's all relative," said Matt McDonald, a partner at the Republican-aligned Hamilton Place Strategies consultancy in Washington. "The number that people are exposed to nationally is bad," he said. BLEAK ECONOMIC INDICATORS Obama is still ahead in most polls

against possible Republican challengers, led by front-runner Mitt Romney. Weak unemployment is only one worrisome economic indicator. U.S. consumer spending failed to rise in May, breaking 10 straight months of gains. And the number of Americans filing new claims for unemployment benefits rose last week, suggesting little improvement in the labor market. Although the election is 17 months away, Obama will face an uphill battle convincing voters to feel better about the country's prospects if things do not improve. "At this point, it's awfully hard to see an Obama commercial that says 'It's morning again in America,'" said Charles Franklin, a professor of political science at the University of Wisconsin and a founder of Pollster.com. Pennsylvania -- which has 20 of the 270 electoral votes needed to win the presidency -- is considered particularly crucial for Obama's 2012 hopes. After reeling in the 1980s and 1990s from the decline of steelmaking and other key industries, the state has lower unemployment than the national average for the first time in modern history, noted Terry Madonna, a political scientist at Pennsylvania's Franklin & Marshall

College. Obama won in Pennsylvania by an unusually large 10 percent margin in 2008, but polls show his job approval rating there -- about 45 percent -- is about the same as it is nationally. "They still say in my state as well as almost every other state that the country is moving in the wrong direction," Madonna said. While better economies are not helping Obama much in relatively robust swing states, economic weakness could hit hard in those that are reeling from the downturn, including four states now considered battlegrounds. Joblessness is at 9.7 percent in North Carolina, where Obama eked out a win with a 0.3 percent margin in 2008. In Michigan, it is 10.3 percent, although the state has benefited from Obama's bailout of the auto industry. Unemployment in Nevada, which Obama won by 10 percent in 2008, is the country's worst, at 12.1 percent. And in Florida, the biggest swing state with 29 electoral votes, and where Obama edged his Republican rival John McCain by just 3 percent in 2008, unemployment is at 10.6 percent. "The last four states are both battlegrounds and economically worse off than the nation, making the political battle over the economy very important there," Franklin said. -Reuters

Friday, July 1, 2011

South East Asian stocks

European shares hit near-4-wk high after Greek vote

Indonesia, Malaysia set record highs, others firm KSE-100 Index Opening Closing Change % Change Turnover (mn)

12,423.30 12,496.03 72.73 0.59 65.93

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

3,061.08 3,051.12 9.96 0.33 2.60

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

2,683.01 2,722.83 39.82 1.48 0.05

Major Gainers

Symbol

Change

NESTLE 5,475.09 WYETH 987.00 SIEM 1,084.21 BATA 614.02 COLG 769.25

68.89 47.00 32.99 14.02 13.51

Major Losers

Symbol

Change

ULEVER 5,225.49 RMPL 2,624.57 PMPK 170.05 ATBA 217.02 PSO 264.58

-173.15 -94.68 -8.06 -4.22 -3.33

Top 5 Volume Leaders

Symbol FATIMA BAHL FFBL ENGRO BAFL

Close Vol (mn) 16.64 29.47 42.15 163.25 9.57

7.95 4.44 3.50 2.64 2.62

Active Issues Plus Minus Unchanged

115 129 84

Sector Updates FERTILISER 000 tonnes Urea Offtake (Jan to Apr 11) 1,714 Urea Offtake (Apr 11) 487 Urea Price (Rs/50 kg) 1,234 DAP Offtake (Jan to Apr 11) 215 DAP Offtake (Apr 11) 55 DAP Price (Rs/50 kg) 4,050

AUTOMOBILE ASSEMBLER PAK SUZUKI MOTOR Units Production (July 10 to Apr 11) 71,096 Sales (July 10 to Apr 11) 69,203 Production (Apr 11) 7,220 Sales (Apr 11) 7,510

INDUS MOTOR CO Production (July 10 to Apr 11) 42,670 Sales (July 10 to Apr 11) 41,940 Production (Apr 11) 4,219 Sales (Apr 11) 4,681

HONDA ATLAS CAR Production (July 10 to Apr 11) 14,062 Sales (July 10 to Apr 11) 13,754 Production (Apr 11)

1,582

Sales (Apr 11)

1,640

DEWAN FAROOQ MOTORS Production (July 10 to Apr 11) Sales (July 10 to Apr 11) Production (Apr 11) Sales (Apr 11)

186 203 -

BANKING SECTOR Scheduled bank (Rs in mn) Deposit (May 27,11) Advances (May 27,11) Investments (May 27,11) Spread (April 11)

5,220,669 3,087,531 2,341,433 7.52%

OIL MARKETING CO (000 tons) MS (Jul 10 to Apr 11) MS (Apr 11) Kerosene (Jul 10 to Apr 11) Kerosene (Apr 11) JP (Jul 10 to Apr 11) JP (Apr 11) HSD (Jul 10 to Apr 11) HSD (Apr 11) LDO (Jul 10 to Apr 11)) LDO (Apr 11) Fuel Oil (Jul 10 to Apr 11) Fuel Oil (Apr 11) Others (Jul 10 to Apr 11) Others (Apr 11)

PRICES (Ex-Refinery) MS (1 May 11) MS (1 Apr 11) MS % Chg Kerosene (1 May 11) Kerosene (1 Apr 11) Kerosene % Chg JP-1 (1 May 11) JP-1 (1 Apr 11) JP-1 % Chg HSD (1 May 11) HSD (1 Apr 11) HSD % Chg LDO (1 May 11) LDO (1 Apr 11) LDO % Chg Fuel Oil (1 May 11) Fuel Oil (1 Apr 11)

1,867 196 134 14 1,148 117 5,719 567 44 2 7,252 739 143 15

Rs 62.83 59.35 5.86% 73.63 68.95 6.79% 73.86 70.88 4.20% 78.79 75.02 5.03% 71.55 65.27 9.62% 57,253 56,777

Gains chipped due to profit-taking at KSE Nawaz Ali KARACHI: Karachi Stock Exchange ended the last session of fiscal year 2010-11 on a bullish note on Thursday just below 12,500 points due to buying mainly in oil and fertilizer stocks. However, investors' participation remained low. The benchmark KSE-100 index gained 73 points to close at 12,496 points, KSE30 index grew by 25 points to close at 11,586 points and KSE all-share index rose by 46 points to close at 8,663

points. "KSE 100 index gained 73 points on the back of renewed buying interest in OGDC & ENGRO", said Jawad Khan, equity dealer at JS Global Capital. OGDC jumped 2.8 per cent over market rumors of foreign funds buying, while ENGRO edged up 1.5 per cent after news that government is considering increasing gas prices for fertilizer sector by 100 per cent and ENGRO shall benefit due to 10 year feed gas purchase agreement, he added. Trading activities began

Nikkei edges up on hopes TOKYO: The Nikkei average ended slightly higher on Thursday though it pulled back after hitting a fresh seven-week peak, partly encouraged by strong performances in other Asian markets. The Nikkei ended the AprilJune quarter up a tad and set to beat many of its peers, supported by signs that Japanese companies are recovering fast from damage after the devastating earthquake in March. Power companies made hefty gains, with Kyushu Electric rising 4.2 per cent after the governor of Saga prefecture, home to a 36-year-old nuclear plant operated by the utility on the southern island of Kyushu, signalled he was not opposed to restarting reactors there. If there is such a restart it would be the first among 35 reactors shut for regular maintenance or kept idle since the March earthquake and tsunami triggered a radiation crisis at the Fukushima Daiichi nuclear plant on the northeast coast. "It's true that we are seeing reassuring factors, such as a

recovery in industrial output, and that some in the market are getting optimistic. But it's another question how many investors will actually put their money into stocks now," said Masato Futoi, a manager of cash stock trading at Tokai Tokyo Securities. But others say that as the supply chain recovery is expected to accelerate from July, investors are increasing the amount of Japanese stocks in their portfolios. The benchmark Nikkei closed Thursday up 0.2 per cent at 9,816.09, after rising to 9,849.69, the highest since May 11. The broader Topix rose 0.6 per cent to 849.22. RECOVERY HOPES On the quarter, the Nikkei was up 0.6 per cent, outperforming many other markets, including the US S&P 500 , which has fallen 1.4 per cent, and ex-Japan Asian-Pacific shares , which have lost 1.0 per cent. Confidence was further boosted by data on Wednesday showing Japan's industrial See # 12 Page 11

with 9 points into the positive zone after that market saw some mix activities during the first half of the day moving on both sides of the index. Then in the later half, buying primarily in oil stocks and in some fertilizer stocks and Nestle kept the index into the positive zone which gradually consolidated the gains. Apart from above mentioned reasons hopes of better then expected corporate results too supported the bulls. Zohaib Zaheer, analyst at Aba Ali Habib Securities said

FTSE 100 up 1.5 per cent LONDON: Britain's top shares rose sharply on Thursday after the Greek parliament passed a second austerity bill to secure emergency funds, with riskier assets such as oil stocks, banks and miners leading the charge higher. The FTSE 100 index closed up 89.76 points, or 1.5 per cent, at 5,945.71, its fifth consecutive day of gains, managing to close out the quarter in slightly positive territory. A surprisingly strong report on manufacturing in the US Midwest, which helped alleviate recent concerns about the global recovery, further enhanced investors' appetite for risk. Lloyds Banking Group led the banks higher, jumping 9.7 per cent, as investors welcomed plans by its new Chief Executive Antonio HortaOsorio to target a leaner group in a radical overhaul. "There will be some material downgrades near term, but in the medium term a marked improvement," Atif Latif, director of trading at Guardian Stockbrokers, said. See # 9 Page 11

China shares gain

Hong Kong closes out grim HONG KONG: Hong Kong and China shares ended a tough month on a positive note on Thursday on hopes that a turnaround in Chinese shares can last, supported by valuations and anticipation of solid corporate earnings. Helping shares in Hong Kong was short-covering ahead of a long weekend, as Friday is a public holiday. Markets in Hong Kong and Shanghai have underperformed Asian peers in the second quarter after outperforming most of them in the first three months. Weighing on the two markets have been fears of escalating inflation, slowing growth in the Chinese economy and shady corporate governance practices among some Chinese firms. With investigations into alleged abuses under way plus data suggesting that fears of a hard landing in China could be overblown, some analysts feel the tide is turning. A Reuters poll on Thursday showed that in June, mutual funds in China raised their recommended equity weightings to an eight-month high. The benchmark Hang Seng Index closed up 1.5 per cent at 22,398.1 points on Thursday, which left it down 5.4 per cent for the month, its worst June performance in three years. The index is down 2.8 per cent so far in 2011.

In a bullish sign, gains on the day came in accelerating turnover, which rose to HK$74 billion, 7 per cent more than the 20-day average. "The market valuation for China is low enough right now that we don't need too many catalysts for a rebound," said William Fong, a senior investment manager who runs China portfolios at Barings Asset Management in Hong Kong. Peaking inflation and strong corporate earnings expected in July were likely to be triggers for a more sustainable rally, said Fong, adding that he was overweight on consumption and technology and underweight on banks as policy risks remained. HSBC Holdings Plc was the top boost for the benchmark index, closing up 1.5 per cent on easing worries over the euro zone's banking sector after Greece lawmakers voted for a five-year austerity plan. The stock hit a roadblock at the HK$78 level, its March low, now seen as stiff resistance. So far this year, shares of HSBC are down 3.3 per cent. LARGE CAPS LEAD SHANGHAI China shares recorded their first monthly gain in three months, boosted by large cap plays with institutional names seen cautiously optimistic on

China's growth outlook in their end-of-month window dressing. The benchmark Shanghai Composite Index finished up 1.2 per cent to 2,762.1 points, ending the second quarter down 5.7 per cent. It is down 1.6 per cent year-to-date. BYD Co, the Chinese automaker backed by US billionaire Warren Buffett, surged as much as 46 per cent on its Shenzhen market debut as insurance counters outperformed on the day, boosted by optimism that a turnaround in mainland markets would lift investment income, which benefits from rising equity prices. Ping An Insurance Group of China Ltd and China Life Insurance Co Ltd gained 2.1 and 3.3 per cent in Shanghai respectively, lifting its Hong Kong listings by more than 2 per cent apiece. "Risk-reward is becoming more positive for investors towards the life insurance names," said Mark Kellock, Barclays Capital's head of research for Asia ex-Japan insurance. Valuations are "looking cheap" relative to growth prospects in these companies and it looks there is some shorter-term confidence back in the Chinese market, Kellock said.-Reuters

that on the last day of the fiscal year, equities posted a decent gain despite low volumes as participants hope that the new financial year would add some strength in terms of higher corporate earnings in leading base shares. The index touched an intraday high of 12,543 points (+ve 120) however, due to some profit taking at higher levels gains were reduced and it failed to close the session above 12,500 points. Investor participation saw some improvement as 65.9 million shares exchanged

hands which were 4.4 million shares more as compared to a turnover of 61.5 million shares a day earlier. Fatima Fertilizer was the most traded scrip of the day with 7.95 million shares followed by Bank Al-Habib with 4.44 million shares and Fauji Fertilizer Bin Qasim with 3.5 million shares. Though, market closed in the positive zone the active issues side showed a different picture as out of total 328 active issues; 129 declined and 115 advanced while 84 issues remained unchanged.

Indian shares outlook subdued MUMBAI: Indian shares declined for the second straight quarter after rising for the previous eight as spiralling inflation and a slowdown in economic growth dispelled investors, and kept the outlook for the quarter ahead subdued. "The market could be rangebound in the September quarter," said R. K. Gupta, managing director of Taurus Mutual Fund. Gupta said that it was difficult to ascertain whether foreign institutional investors (FIIs) would continue their buying as domestic woes prevailed and euro zone issues were still not completely resolved. "It depends on what FIIs' appetite is like, for which global cues need to be watched. But, a runaway rally is not likely." Foreign funds have been net buyers of only $322 million of Indian shares so far in 2011. They had pumped in a record $29.3 billion in 2010. The progress of monsoon rains, which arrived in June and are a key to India's trillion-dollar economy, will be eyed for more cues. On Thursday, the 30-share BSE index closed 0.81 per cent, or 152.01 points, higher at 18,845.87 points, with 21 com-

ponents advancing. The gains in the day were supported by firm world equities as investors breathed a sigh of relief after Greece took a step closer to avoiding the euro zone's first sovereign default. The 50-share NSE index firmed 0.8 per cent to 5,647.40. Trade was volatile towards the close of day as monthly derivative contracts expired on the NSE. The BSE index fell 3.1 per cent in the quarter ended June, but notched a 1.9 per cent gain in June -- its first monthly gain in three months. It is down 8.1 per cent in 2011, making it one of the worst performing major markets in the world. The realty sector index dropped the most this quarter -falling 14.6 per cent -- as rising interest rates and spiralling property prices drove away buyers, with the top-listed developer declining 21.6 per cent in the period. On the other hand, the consumer goods sector rose nearly 10 per cent this quarter and was the best performing sector, powered by the consumption story in Asia's third-largest economy. Sector majors ITC, Hindustan Unilever and See # 10 Page 11

US stocks mid-morning

Wall Street rallies for fourth day NEW YORK: US stocks gained for a fourth straight day on Thursday as equity markets rallied into the end of the quarter, boosted by a surprisingly strong report on manufacturing in the US Midwest. Business activity in the region grew more than expected this month, lifted by a jump in new orders. That helped ease recent concerns about the economy that have weighed on markets over the past two months. "The case for a weakening at the national level is now less strong," said Pierre Ellis, senior economist at Decision Economics in New York. "The really good news is that orders jumped back up." The Dow Jones industrial average gained 129.30 points, or 1.05 per cent, to 12,390.72. The Standard & Poor's 500 Index rose 11.25 points, or 0.86 per cent, to 1,318.66. The Nasdaq Composite Index added 28.15 points, or 1.03 per cent, to 2,768.64. The S&P 500 moved above its 50-day moving average at 1,317, a level where analysts said the index would meet resistance. The S&P 500 has gained more than 3 per cent in its best three-day run in three months as the Greek parliament on Wednesday adopted austerity measures to avoid a debt default. On Thursday, lawmaker passed a law that will permit implementation of the plan that was demanded by European officials. The S&P 500 is down less than 1 per cent this quarter, while the Dow is up 0.5 per cent and the Nasdaq is off 0.5 per cent. Much of the recent rally has been traced to end-of-quarter window dressing by fund managers, who typically sell losers and buy winners to make their portfolios look better. The Federal Reserve ends its $600 billion bond-buying program, known as QE2, on Thursday and has not offered any hints of more monetary easing. Markets were volatile in May and June, partly on concerns about QE2's end. First Solar Inc surged 9.3 per cent to $141.64 after the solar See # 11 Page 11

Dhiyan

RESULTS POSSIBLE TRIGGER Khurram Shehzad, Head of Research Invest Cap Market is expected to show bullish activities in the short-run where it may face resistance at 13000 levels. Any relaxation in Margin Trading System (MTS) rules, better than expected result announcements by the listed companies as well as upcoming monetary policy are main market triggers. Investors are advised to invest in oil & gas and fertilizer sectors. Today market tends to show mix activities with low volumes.

Syed Faran Rizvi, Technical Analyst Invisor Securities

The bullish activities in the market are expected to continue moving forward where the KSE-100 index can cross 13,000 levels. We therefore recommend the investors to stay in the market and invest with long term horizon. They can take positions in stocks belonging to E&P and fertilizer sectors. Market would be positive today.

Friday, July 1, 2011

Market

KSE 100 Index

Symbols

Volume

65,925,554

Value

2,850,503,890

Trades

39,494

Advanced Declined Unchanged Total

Current High Low Change

115 129 84 328

All Share Index

12,496.03 12,544.38 12,400.10 h72.73

Current High Low Change

8,663.10 8,694.01 8,599.64 h46.56

OIL AND GAS

Company

Paid up Cap(mn)

Attock Petroleum 691 Attock Refinery 853 BYCO Petroleum 3921 Mari Gas Company XD 735 National Refinery 800 Oil & Gas Development XD43009 Pak Petroleum XD 11950 Pak Oilfields 2365 Pak Refinery Limited 350 P.S.O 1715 Burshane LPG 226 Shell Pakistan 685

High Low 1,552.64 1,515.47 Total cos Defaulter cos 12 P/BV (x) ROE (%) 3.40 32.54

Open

High

Low

6.76 4.03 4.39 4.87 10.35 7.57 7.92 44.94 3.78 8.00

374.29 124.23 9.09 103.95 354.00 148.84 206.46 359.66 80.41 267.91 24.78 227.93

378.00 125.10 9.20 108.20 356.99 153.50 208.94 361.90 81.50 272.49 24.30 228.10

374.00 122.50 9.05 102.50 351.01 148.10 206.75 358.15 80.11 262.31 23.76 224.25

Close Chg 374.27 122.73 9.07 107.37 352.26 152.99 207.07 359.01 80.45 264.58 24.78 225.01

-0.02 -1.50 -0.02 3.42 -1.74 4.15 0.61 -0.65 0.04 -3.33 0.00 -2.92

Current High Low Change

KMI 30 Index Current High Low Change

11,586.49 11,626.69 11,550.21 h25.02

20,936.20 21,072.36 20,926.46 i50.74

Last 60 days High Low

Volume 18838 628790 471268 138903 78032 1174613 579321 538236 5965 1075495 101 19963

394.90 143.50 10.10 113.75 387.35 157.51 219.70 370.75 93.10 291.50 28.29 233.00

362.20 119.35 7.93 98.50 315.03 128.21 202.50 318.16 80.10 262.31 22.11 207.00

% Change 1.05 5-Day High 1,558.90 5-Day Low 1,523.37

2010 Div BR (%) (%) 300 31 200 55 90 255 80 120

2011 Div BR (%) (%)

20B115.00 - 23.43 - 30.00 20B100.00 -100.00 - 80.00 -

CHEMICALS

Company

Paid up Cap(mn)

Open 766.29 Turnover 8,777 P/E (x) 5.07 Company

High Low 779.48 739.42 Total cos Defaulter cos 4 2 P/BV (x) ROE (%) 1.29 25.53

Close 761.91 Listed cap 3,242.17 mn Payout (%) 11.08

Change -4.38 Market cap 12,291.78 mn Div Yield (%) 2.19

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1092 1321

7.47 7.04

81.52 24.53

82.93 24.99

78.75 23.40

81.25 -0.27 24.00 -0.53

4546 4231

91.20 30.99

Pak Int Cont.Terminal PNSC

67.31 23.40

High

Low

Agritech Limited 3924 - 18.82 BOC (Pak) 250 7.22 94.00 Clariant Pak 341 4.89 159.50 Dawood Hercules 4813 3.77 63.98 Descon Chemical 1996 2.14 Descon Oxychem Ltd. 1020 8.96 6.16 Dewan Salman 3663 2.59 Dynea Pak 94 3.44 10.67 Engro Corporation Ltd 3933 7.29 160.88 Engro Polymer 6635 - 10.23 Fatima Fertilizer 22000 - 16.08 Fauji Fertilizer 8482 9.25 152.33 Fauji Fert.Bin Qasim 9341 6.31 42.94 Ghani Gases Ltd 725 10.83 12.90 ICI Pakistan 1388 8.44 152.36 Lotte Pakistan 15142 3.86 13.99 Nimir Ind Chemical 1106 12.17 2.87 Shaffi Chemical 120 28.38 2.28 Sitara Chem Ind 214 2.48 99.64 Sitara Peroxide 551 5.19 16.80 United Distributors 92 - 13.83 Wah-Noble 90 5.13 36.35

19.00 95.99 161.49 66.00 2.15 6.20 2.74 10.49 164.50 10.40 17.05 153.24 42.98 13.10 152.75 14.05 2.95 2.27 101.90 17.04 14.39 37.00

18.75 94.30 159.50 62.50 2.07 6.07 2.57 10.49 160.10 10.27 16.10 150.01 41.91 12.52 151.35 13.79 2.75 2.27 94.67 16.05 13.00 36.50

Close Chg 19.00 95.89 160.34 65.02 2.10 6.09 2.61 10.49 163.25 10.33 16.64 150.35 42.15 12.89 151.85 13.83 2.80 2.27 99.81 16.75 13.61 36.35

0.18 1.89 0.84 1.04 -0.04 -0.07 0.02 -0.18 2.37 0.10 0.56 -1.98 -0.79 -0.01 -0.51 -0.16 -0.07 -0.01 0.17 -0.05 -0.22 0.00

Close 1,828.75 Listed cap 52,251.88 mn Payout (%) 48.81

Change -10.66 Market cap 381,534.10 mn Div Yield (%) 5.68

Last 60 days High Low

Volume 20000 26175 2626 1304052 118050 140854 315598 1000 2639040 124406 7947523 1260704 3502274 9651 9965 2256624 975100 5000 62845 125076 1506 350

23.18 99.80 167.00 69.40 3.09 9.20 3.65 11.50 206.18 13.40 17.05 157.74 44.21 14.49 172.00 17.36 3.40 3.25 109.40 19.99 16.50 37.90

17.01 87.71 141.99 56.10 2.00 5.60 2.11 9.50 159.63 10.11 12.10 137.00 40.02 11.40 148.02 13.79 2.26 2.00 94.67 16.05 13.00 34.19

% Change -0.58 5-Day High 1,877.79 5-Day Low 1,828.75

2010 Div BR (%) (%)

2011 Div BR (%) (%)

60 135 25B 50 300B 15 60 20B - 27.5R 130 25B 45.00 65.5 - 12.50 175 5 25 5B 50 -

FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,073.64 Turnover 161,047 P/E (x) 5.19 Company

High Low 1,087.30 1,067.21 Total cos Defaulter cos 4 1 P/BV (x) ROE (%) 0.39 7.47

Close 1,077.50 Listed cap 1,186.83 mn Payout (%) 25.28

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

707 411

7.17

15.25 40.50

15.49 41.00

15.00 40.50

15.40 0.15 40.50 0.00

9137 151910

Century Paper Security Paper

Change 3.86 Market cap 2,972.90 mn Div Yield (%) 4.87

Last 60 days High Low 18.00 42.80

13.85 37.00

% Change 0.36 5-Day High 1,109.92 5-Day Low 1,073.64

2010 Div BR (%) (%) 50

2011 Div BR (%) (%) -

Open 1,133.88 Turnover 468,745 P/E (x) 3.94 Paid up Cap(mn)

Open

Agriautos Ind 144 4.28 69.08 Atlas Battery 101 5.76 221.24 Atlas HondaXDXB 719 7.18 115.90 Baluchistan Wheels Ltd. 133 1.49 31.98 Dewan Motors 1087 2.88 Exide (PAK) 56 4.48 220.48 Ghandhara Nissan 450 3.10 Ghani Automobile Ind 200 5.87 3.29 Honda Atlas Cars 1428 - 10.00 Indus Motors 786 7.60 221.00 Pak Suzuki 823 14.09 64.01 Sazgar Engineering 150 1.12 22.71

Company

Paid up Cap(mn)

Crescent Steel XD Dost Steels Ltd Huffaz Pipe XD

565 1.77 675 555 22.11

Inter.Steel Ltd. International Ind

4350 1199

8.86

Open

High

Low

Close Chg

Close 1,003.03 Listed cap 3,596.11 mn Payout (%) 30.91

High

High Low 1,149.58 1,121.75 Total cos Defaulter cos 19 4 P/BV (x) ROE (%) 1.00 25.35 Low

Close Chg

Change 0.58 Market cap 15,160.37 mn Div Yield (%) 11.82

% Change 0.06 5-Day High 1,016.69 5-Day Low 1,001.46

2010 Div BR (%) (%)

2011 Div BR (%) (%)

26.50 2.14 12.20

25.70 2.00 11.81

26.12 -0.14 2.05 -0.02 12.38 0.00

274200 10404 145

29.75 2.98 13.29

25.70 1.62 11.05

30 -

- 20.00 25B 15.00

13.62 49.29

13.65 50.40

13.61 49.25

13.61 -0.01 49.50 0.21

11700 259666

15.06 54.50

0.00 48.52

20B

Company

Paid up Cap(mn)

Abdullah Shah Ghazi Sugar 793 Adam Sugar 58 Chashma Sugar 287 Colony Sugar Mills 990 Dewan Sugar 365 Fecto Sugar 146 Habib Sugar 750 J D W Sugar XR 539 Mehran SugarXDXB 173 Mirza Sugar 141 National Foods 414 Nestle Pakistan 453 Noon Sugar 165 Quice Food 107 Rafhan Maize 92 S S Oil 57 Sakrand Sugar 223 Sanghar Sugar 119 Shahmurad Sugar 211 Shahtaj Sugar 120 Tandlianwala 1177 Thal Industries 150 UniLever Pakistan 665

Close 1,126.35 Listed cap 6,768.53 mn Payout (%) 20.42

Volume

Change -7.53 Market cap 41,243.62 mn Div Yield (%) 5.18

Last 60 days High Low

Company

Paid up Cap(mn)

Al-Abbas Cement Attock Cement Berger Paints Cherat Cement Dadabhoy Cement Dandot Cement

Open

High

Low

1828 866 6.14 182 956 42.86

2.64 49.00 14.31 9.00

2.68 49.89 14.55 9.00

2.64 48.50 14.55 9.00

Change -3.78 Market cap 64,110.86 mn Div Yield (%) 3.27

Close Chg

Volume

Last 60 days High Low

2.64 48.53 14.55 9.00

5000 22107 570 4000

3.25 56.70 17.39 11.90

0.00 -0.47 0.24 0.00

- 100R 50 - 122R -

982 16.15 948 -

2.08 1.45

2.10 1.94

1.90 1.26

2.10 0.02 1.32 -0.13

3891 4381 30.65

1.75 22.97

1.74 23.25

1.60 22.85

1.69 -0.06 22.99 0.02

Fauji Cement Flying Cement Ltd

6933 1760

7.10 -

4.14 1.32

4.26 1.34

4.12 1.25

4.12 -0.02 1.29 -0.03

64152 7307

5.04 1.95

3.99 1.20

Frontier Ceramics Gammon Pak Gharibwal Cement

77 283 4003

2.02 1.25 8.78

2.80 1.25 8.80

1.56 1.25 7.79

2.02 0.00 1.25 0.00 7.86 -0.92

102 2000 21461

3.80 2.49 13.50

1.35 0.70 4.25

1288

6.16

6.11

6.11 -0.05

500

7.87

6.11

13126 67.50 3234 5.75 5267 -

2.74 70.94 2.18

2.84 71.10 2.25

2.67 70.10 2.00

2.70 -0.04 70.84 -0.10 2.06 -0.12

3.35 77.43 3.05

2.10 66.93 1.97

40 -

Kohat Cement Lafarge Pakistan Cmt. Lucky Cement Maple Leaf Cement

7912 20301

2.40 48.11 13.55 9.00

600330 527419 660359

% Change -0.44 5-Day High 875.21 5-Day Low 859.96

2010 Div BR (%) (%)

Dewan Cement DG Khan Cement Ltd

50126 1080417

2011 Div BR (%) (%) -

2.24 2.90

1.50 1.15

2.67 26.38

1.36 21.31

20R

92R -

Maple Leaf(Pref)

536

3.61

4.74

4.91

4.90

4.91 0.17

5000

5.18

1.52

Pioneer Cement Shabbir Tiles Thatta Cement

2271 361 798

5.72 6.70 19.05

5.89 6.90 20.05

5.50 6.90 19.50

5.51 -0.21 6.51 -0.19 19.98 0.93

2605 2100 22922

6.40 8.50 20.05

4.50 5.25 16.01

50R

- 100R -

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 983.59 Turnover 930,231 P/E (x) 2.81

High Low 998.26 974.62 Total cos Defaulter cos 13 2 P/BV (x) ROE (%) 1.23 43.91

Close 983.16 Listed cap 3,043.31 mn Payout (%) 15.55

Change -0.43 Market cap 36,585.33 mn Div Yield (%) 5.54

% Change -0.04 5-Day High 986.12 5-Day Low 972.89

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Last 60 days High Low

Cherat Papersack

172

2.33

48.00

48.99

47.00

47.37 -0.63

32204

56.60

46.45

25B

50R

ECOPACK Ltd MACPAC Films Merit Pack

230 389 2.06 47 11.59

1.30 10.71 25.84

1.53 11.71 26.50

1.17 9.78 25.55

1.21 -0.09 10.33 -0.38 25.84 0.00

871622 7560 380

1.96 15.21 32.00

1.17 9.78 24.10

Company

Packages Ltd

844 18.33 111.99

Siemens Engineering Tri-Pack Films

82 20.84 1051.22 1102.95 1059.09 1084.21 32.99 300 6.68 174.00 172.50 171.00 171.25 -2.75

112.01 109.68 110.00 -1.99

2010 Div BR (%) (%)

2011 Div BR (%) (%)

10524

118.97

103.01

32.5

241 7691

1120.00 181.99

960.00 148.05

900 100

Company Ados Pak

Paid up Cap(mn)

Open

3.26

8.89

Dewan Auto Engineering 214

1.25

Hinopak Motor

124

- 110.29

KSB Pumps

132

Millat Tractors

366

31.51

9.14 605.01

High

Low

Close Chg

Company

Last 60 days High Low 7.40

2010 Div BR (%) (%) -

2011 Div BR (%) (%)

8.80

8.40

8.89

1.55

1.59

0.34

5000

2.15

0.71

5.14

1100

115.80

84.01

1.33

10751

49.39

30.50

12.5

610.70 600.01 601.71 -3.30

86752

610.70

510.00

650

25B325.00

32.84

9.65

High

Low

Close Chg

Close 2,424.61 Listed cap 11,335.33 mn Payout (%) 30.57

Volume

2010 Div BR (%) (%) 90 100 50 25 60 150 5 10

20B 15B 20B

Change -28.42 Market cap 385,429.13 mn Div Yield (%) 0.48

Last 60 days High Low

172 6.90 4.10 500 19.24 11.50 1060 10.90 8.00 47100 3.34 1.51 6938 3.85 2.16 202 50.00 37.85 47028 28.00 23.00 2000 84.30 71.75 503 68.48 52.11 5756 3.50 2.40 899 88.00 58.10 375 5675.00 3299.00 340 21.80 13.50 3000 3.50 2.20 1575 2889.89 2340.00 24000 6.45 3.80 15500 3.00 1.75 510 13.01 11.50 8104 10.79 7.91 239 71.50 59.72 180 60.30 43.00 331 60.15 51.80 5902 5600.00 4860.08

High Low 709.61 664.14 Total cos Defaulter cos 15 7 P/BV (x) ROE (%) 0.11 10.64

Close 671.39 Listed cap 3,763.71 mn Payout (%) 6.27

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

90 1219 693

1.58

9.73 6.85 11.95

8.75 7.44 12.20

8.75 6.50 11.80

8.75 -0.98 6.63 -0.22 11.98 0.03

10000 57527 28506

Diamond Ind Pak Elektron Tariq Glass Ind

2011 Div BR (%) (%) 65.00 60.00 50.00 10.00

15B 25B -

2010 Div BR (%) (%)

% Change -1.16 5-Day High 2,453.03 5-Day Low 2,358.24 2011 Div BR (%) (%)

25 10 25 25B 7010B 12.5R 35 20B 15.00 10 12 750 1150 - 350.00 15 10 15 492 -

10R 10B -

Change -13.92 Market cap 4,499.72 mn Div Yield (%) 6.01

Last 60 days High Low

2010 Div BR (%) (%)

10.18 13.98 14.47

17.5

7.11 6.50 11.20

10B -

% Change -2.03 5-Day High 699.99 5-Day Low 671.39 2011 Div BR (%) (%) - 200R

PERSONAL GOODS Performance of SR Personal Goods Index Open 968.66 Turnover 6,332,749 P/E (x) 5.83 Company

Paid up Cap(mn)

Amtex Limited Artistic Denim Azgard Nine Bannu Woolen XD Bata (Pak) Bilal Fibres Blessed Tex Mills Chenab Limited Chenab Ltd Pref Colgate Palm Colony Mills Ltd Crescent Textile D S Ind Ltd Dawood Lawrencepur Dewan Khalid Textile Dewan Mushtaq Textile Gul Ahmed Textile Gulshan Spinning Hira Textile Mills Ltd. Ibrahim Fibres ICC Textile Ideal Spinning Idrees Textile Indus Dyeing Int Knitwear Ishaq Textile Kohinoor Ind Kohinoor Textile Latif Jute Leather Up Maqbool Textile Masood Textile Mohd Farooq Mukhtar Textile Nishat (Chunian) Nishat Mills Olympia Textile Pak Synthetic Ravi Textile Reliance Weaving Rupali Poly Saif Textile Salfi Textile Sally Textile Samin Textile Sargoda Spinning Saritow Spinning Service Ind Shahtaj Textile Suraj Cotton Thal Ltd Treet Corp Tri-Star Poly Yousuf Weaving Zephyr Textile Ltd

2594 840 4493 76 76 141 64 1150 800 316 2442 492 600 591 57 34 635 222 716 3105 300 99 180 181 32 97 303 2455 36 60 168 600 189 145 1621 3516 108 560 250 308 341 264 33 88 267 312 133 120 97 180 307 418 215 400 594

High Low 976.68 959.42 Total cos Defaulter cos 211 73 P/BV (x) ROE (%) 0.50 8.64

Open

High

Low

7.91 0.65 7.23 0.78 0.65 21.64 1.77 4.19 0.30 0.23 3.27 0.46 0.75 3.01 0.31 1.67 3.64 0.48 4.54 39.65 6.69 2.18 1.81 3.43 4.47 2.45 0.58 2.98 0.25 0.33 0.26 2.35 1.19 0.29 3.35 1.57 0.71 6.50 0.53 4.52

2.65 23.83 5.59 15.46 600.00 0.85 65.00 2.05 1.50 755.74 1.78 15.30 1.10 32.44 1.93 4.49 50.00 11.01 3.60 44.38 0.77 4.10 4.20 369.00 4.25 6.51 1.10 3.90 6.11 2.60 9.10 19.43 0.81 0.53 23.03 50.60 0.80 19.58 0.92 11.25 40.90 7.06 62.13 7.45 5.69 2.75 1.17 194.95 28.00 35.20 102.51 53.25 0.65 1.13 3.25

2.69 25.02 5.71 15.35 630.00 1.00 68.00 2.06 2.49 769.25 1.77 16.30 1.16 32.00 2.00 4.35 51.90 11.49 3.80 43.10 1.39 5.00 4.94 387.45 5.25 6.25 1.15 4.20 6.75 2.60 10.10 20.00 0.83 0.48 23.24 50.88 0.70 20.50 1.00 11.25 41.50 7.45 65.00 7.01 5.49 2.90 1.55 198.00 28.00 36.96 103.00 53.88 1.58 1.24 3.49

2.50 23.00 5.48 15.35 600.00 1.00 62.25 2.00 0.50 750.00 1.69 14.50 1.01 32.00 2.00 4.34 50.55 10.98 3.75 42.17 0.75 3.50 4.20 369.75 5.25 5.90 1.00 3.64 6.74 1.65 9.89 19.49 0.80 0.48 22.22 49.85 0.65 18.58 0.81 11.25 39.50 7.01 59.25 6.50 4.70 2.85 1.50 185.25 28.00 36.80 100.50 51.50 0.62 1.15 2.35

Open 967.28 Turnover 44,972 P/E (x) 6.42

% Change -0.38 5-Day High 1,781.69 5-Day Low 1,689.05

1.59

30.50

191

68.00 203.65 112.10 30.26 1.50 190.00 2.16 2.90 9.00 215.00 62.50 22.01

% Change -0.66 5-Day High 1,151.57 5-Day Low 1,126.35

Close Chg 2.53 25.00 5.52 15.46 614.02 1.00 67.99 2.04 2.32 769.25 1.70 15.57 1.10 32.00 2.00 4.49 51.73 11.00 3.75 42.22 1.19 4.21 4.35 381.47 5.25 5.95 1.10 3.95 6.74 2.41 10.10 19.50 0.81 0.48 22.29 50.34 0.66 19.62 0.88 11.25 39.54 7.06 64.27 6.59 4.82 2.86 1.51 196.10 28.00 36.95 101.04 52.02 1.21 1.20 3.48

-0.12 1.17 -0.07 0.00 14.02 0.15 2.99 -0.01 0.82 13.51 -0.08 0.27 0.00 -0.44 0.07 0.00 1.73 -0.01 0.15 -2.16 0.42 0.11 0.15 12.47 1.00 -0.56 0.00 0.05 0.63 -0.19 1.00 0.07 0.00 -0.05 -0.74 -0.26 -0.14 0.04 -0.04 0.00 -1.36 0.00 2.14 -0.86 -0.87 0.11 0.34 1.15 0.00 1.75 -1.47 -1.23 0.56 0.07 0.23

Close 969.14 Listed cap 47,070.70 mn Payout (%) 16.68

Volume 208772 2120110 1089055 465 1221 500 1502 4001 602 188 699 1350 23131 600 1000 468 570011 8180 31000 10000 16652 9580 2003 1375 500 3489 46650 101419 85001 898 2500 2305 600 10000 439607 1249484 12500 20710 14391 250 1620 154 819 23003 512 1300 1500 73140 2000 1798 11855 17615 93416 5802 5004

Change 0.48 Market cap 124,570.76 mn Div Yield (%) 2.86

Last 60 days High Low 3.76 25.40 8.50 22.66 630.00 1.97 74.49 2.88 3.00 825.00 2.64 16.30 1.39 45.30 2.48 5.40 53.65 12.16 5.00 49.92 2.00 9.35 5.98 387.45 9.88 8.24 1.75 5.25 7.00 3.50 10.10 20.00 1.20 0.97 29.35 66.00 1.98 21.21 1.74 14.00 43.73 11.40 68.25 9.35 6.80 4.95 1.99 198.90 28.88 42.00 109.00 59.20 1.58 1.99 4.80

2010 Div BR (%) (%)

% Change 0.05 5-Day High 969.14 5-Day Low 963.96 2011 Div BR (%) (%)

1.81 - 30B 20.25 20 4.40 15.35 20 411.00 280 0.71 56.07 50 1.65 0.46 647.01 135 15B 1.40 12.50 15 0.95 30.50 5 15B 1.10 3.40 46.50 12.5 9.52 10 20B 3.60 10 42.06 20 0.63 3.50 3.80 10 273.94 50 - 50.00 4.00 6 5.25 8 0.75 3.64 5.12 1.65 8.25 22.5 16.70 15 100R 0.23 0.16 22.22 15 49.85 25 45R 0.30 17.01 0.53 10.70 25SD 38.05 40 7.00 49.00 25 5.50 10 4.10 - 100R 2.75 5 1.13 154.00 75 22.50 45 35.20 50 97.00 80 20B 47.95 50 900B 0.23 1.00 2.25 -

Performance of SR Pharma and Bio Tech Index

Change -6.78 Market cap 35,131.56 mn Div Yield (%) 27.45

115.80 114.01 115.43 33.08

0.00

PHARMA AND BIO TECH

Close 1,774.91 Listed cap 1,336.62 mn Payout (%) 131.49

Volume

Open

Open 685.31 Turnover 96,033 P/E (x) 1.04

INDUSTRIAL ENGINEERING High Low 1,799.22 1,768.89 Total cos Defaulter cos 11 1 P/BV (x) ROE (%) 1.82 38.02

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

48.28

Total Assets (Rs in mn)

MA (10-day)

21.39

Total Equity (Rs in mn)

MA (100-day)

23.30

Revenue (Rs in mn)

110,759.62

MA (200-day)

23.57

Interest Expense

5,015.89

1st Support

21.02

Profit after Taxation

4,399.15

2nd Support

20.42

EPS 10 (Rs)

6.554

1st Resistance

21.95

Book value / share (Rs)

20.97

14,072.35 107,736.78

2nd Resistance

22.28

PE 11 E (x)

6.11

Pivot

21.35

PBV (x)

1.03

SSGC closed up 1.02 at 21.67. Volume was 173 per cent above average (trending) and Bollinger Bands were 13 per cent wider than normal. The company's profit after taxation stood at Rs2.230 billion which translates into an Earning Per Share of Rs2.66 for the nine months of fiscal year (9MFY11). SSGC is currently 8.1 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 very strong flows of volume into SSGC (bullish). Trend forecasting oscillators are currently bearish on SSGC.

Crescent Steel & Allied Products Limited

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

37.70

Total Assets (Rs in mn)

MA (10-day)

26.42

Total Equity (Rs in mn)

2,622.61

MA (100-day)

27.48

Revenue (Rs in mn)

3,704.39

MA (200-day)

26.71

Interest Expense

4,436.30

121.91

1st Support

25.70

Profit after Taxation

416.55

2nd Support

25.30

EPS 10 (Rs)

7.378

1st Resistance

26.50

Book value / share (Rs)

46.45

2nd Resistance

26.90

PE 11 E (x)

2.37

Pivot

26.10

PBV (x)

0.56

CSAP closed down -0.14 at 26.12. Volume was 902 per cent above average (trending) and Bollinger Bands were 12 per cent wider than normal. The company's profit after taxation stood at Rs467.274 million which translates into an Earning Per Share of Rs8.28 for the nine months of fiscal year (9MFY11). CSAP is currently 2.2 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 very strong flows of volume out of CSAP (bearish). Trend forecasting oscillators are currently bearish on CSAP.

Maple Leaf Cement Factory Limited

HOUSEHOLD GOODS

Performance of SR Industrial Engineering Index Open 1,781.69 Turnover 103,844 P/E (x) 4.79

311572 74.85 3575 235.89 419 160.00 174 37.99 95704 3.46 5410 231.99 14830 4.50 502 4.60 2542 11.58 202 232.53 33470 76.90 245 25.50

High Low 2,531.55 2,377.64 Total cos Defaulter cos 61 16 P/BV (x) ROE (%) 19.31 30.30

2.07 5.00 4.50 4.50 5.00 0.00 1.03 17.54 17.50 17.50 17.50 -0.04 0.70 10.00 10.15 10.00 10.14 0.14 2.81 1.76 1.80 1.70 1.80 0.04 2.98 3.29 2.55 3.08 0.10 - 38.00 38.00 38.00 38.00 0.00 4.76 27.00 27.10 26.75 26.76 -0.24 1.60 81.31 81.79 80.51 80.51 -0.80 1.73 56.56 57.89 57.00 57.13 0.57 0.26 2.60 2.60 2.45 2.45 -0.15 12.95 78.02 75.00 74.55 75.00 -3.02 41.57 5406.20 5675.00 5240.01 5475.09 68.89 1.56 17.00 17.11 17.10 17.00 0.00 5.91 2.65 2.60 2.41 2.60 -0.05 11.60 2719.25 2705.00 2584.00 2624.57 -94.68 0.35 5.05 5.50 5.00 5.00 -0.05 21.82 2.20 2.55 2.32 2.40 0.20 1.70 11.70 12.00 12.00 12.00 0.30 1.05 9.51 9.89 8.80 9.00 -0.51 1.80 62.95 61.50 61.50 62.95 0.00 15.00 53.11 54.00 54.00 53.11 0.00 2.97 54.25 51.80 51.80 54.25 0.00 19.33 5398.64 5600.00 5200.00 5225.49 -173.15

Performance of SR Construction and Materials Index Close 864.55 Listed cap 54,792.74 mn Payout (%) 19.04

2011 Div BR (%) (%)

FOOD PRODUCERS

CONSTRUCTION AND MATERIALS High Low 878.05 857.89 Total cos Defaulter cos 37 6 P/BV (x) ROE (%) 0.41 7.10

69.50 69.50 69.50 0.42 220.99 217.00 217.02 -4.22 117.80 114.50 115.12 -0.78 31.90 30.40 31.90 -0.08 3.14 2.82 2.89 0.01 221.00 218.60 219.11 -1.37 3.29 2.90 3.10 0.00 3.30 3.11 3.11 -0.18 10.68 10.05 10.05 0.05 224.99 219.01 220.00 -1.00 63.98 62.53 62.55 -1.46 23.00 22.51 22.71 0.00

Open 2,453.03 Turnover 172,293 P/E (x) 63.74

26.26 2.07 12.38

Open 868.33 Turnover 3,106,691 P/E (x) 5.82

Performance of SR Household Goods Index

Last 60 days High Low

Volume

40 15

Performance of SR Food Producers Index

Performance of SR Industrial Metals and Mining Index High Low 1,017.54 993.66 Total cos Defaulter cos 7 1 P/BV (x) ROE (%) 0.87 33.10

2010 Div BR (%) (%)

Performance of SR Automobile and Parts Index

INDUSTRIAL METALS AND MINING Open 1,002.45 Turnover 544,415 P/E (x) 2.62

% Change -0.57 5-Day High 820.15 5-Day Low 761.91

AUTOMOBILE AND PARTS

Company

High Low 1,857.26 1,814.24 Total cos Defaulter cos 36 6 P/BV (x) ROE (%) 3.01 35.00

Open

Sui Southern Gas Company Limited

Performance of SR Industrial Transportation Index

Close Change 1,539.29 15.92 Listed cap Market cap 65,194.15 mn 1,130,488.06 mn Payout (%) Div Yield (%) 55.94 5.36

Performance of SR Chemicals Index Open 1,839.41 Turnover 12,782,848 P/E (x) 8.60

Alert ! Unusual Movements

INDUSTRIAL TRANSPORTATION

Performance of SR Oil and Gas Index Open 1,523.37 Turnover 4,258,156 P/E (x) 10.44

KSE 30 Index

Company Abbott (Lab) XD Ferozsons (Lab) GlaxoSmithKline Highnoon (Lab) IBL HealthCare Ltd Searle Pak Wyeth Pak

Paid up Cap(mn) 979 250 2019 182 200 306 142

Open

5.73 93.12 7.78 94.00 10.97 73.23 7.44 32.93 3.89 9.21 5.30 55.02 10.69 940.00

High

High Low 988.53 958.84 Total cos Defaulter cos 9 P/BV (x) ROE (%) 1.43 22.31 Low

Close Chg

93.50 92.50 93.49 0.37 91.51 91.50 94.00 0.00 76.89 73.55 76.80 3.57 33.45 32.10 32.14 -0.79 10.12 9.17 9.50 0.29 55.00 54.00 54.35 -0.67 987.00 895.01 987.00 47.00

Close 987.05 Listed cap 3,904.20 mn Payout (%) 44.54

Volume 1843 158 30679 4126 4387 3288 491

Change 19.76 Market cap 32,592.00 mn Div Yield (%) 6.94

Last 60 days High Low 94.70 99.49 90.00 33.50 12.00 65.75 1050.00

84.05 88.21 70.60 24.51 9.00 54.00 800.00

2010 Div BR (%) (%) 50 40 25 30 10

% Change 2.04 5-Day High 987.05 5-Day Low 957.61 2011 Div BR (%) (%)

20B 12.50 15B 10B -

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

36.82

Total Assets (Rs in mn)

MA (10-day)

2.21

Total Equity (Rs in mn)

MA (100-day)

2.31

Revenue (Rs in mn)

MA (200-day)

2.60

Interest Expense

1st Support

1.95

Loss after Taxation

2nd Support

1.85

EPS 10 (Rs)

1st Resistance

2.20

Book value / share (Rs)

2nd Resistance

2.35

PE 11 E (x)

Pivot

2.10

PBV (x)

26,094.94 4,134.21 13,630.51 2,059.48 (2,583.96) (6.941) 11.11 0.19

MLCF closed down -0.12 at 2.06. Volume was 167 per cent above average (trending) and Bollinger Bands were 50 per cent wider than normal. The company's loss after taxation stood at Rs1.565billion which translates into a Loss Per Share of Rs3.26 for the nine months of fiscal year (9MFY11). MLCF is currently 20.5 per cent below its 200-day moving average and is displaying a downward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of MLCF at a relatively equal pace. Trend forecasting oscillators are currently bearish on MLCF.

Kohinoor Textile Mills Limited

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

35.22

Total Assets (Rs in mn)

MA (10-day)

4.27

Total Equity (Rs in mn)

MA (100-day)

4.52

Revenue (Rs in mn)

MA (200-day)

4.96

Interest Expense

17,057.30

1st Support

3.70

Profit after Taxation

2nd Support

3.39

EPS 10 (Rs)

1.909

1st Resistance

4.26

Book value / share (Rs)

23.10

2nd Resistance

4.51

PE 11 E (x)

4.56

Pivot

3.95

PBV (x)

0.17

3,361.27 10,693.34 1,072.77 277.86

KTML closed up 0.05 at 3.95. Volume was 181 per cent above average (trending) and Bollinger Bands were 30 per cent narrower than normal. The company's profit after taxation stood at Rs140.023 million which translates into an Earning Per Share of Rs0.65 for the nine months of fiscal year (9MFY11). KTML is currently 20.2 per cent below its 200-day moving average and is displaying a downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume out of KTML (bearish). Trend forecasting oscillators are currently bearish on KTML.

BOOK CLOSURES Company

From

Atlas Income Fund Pak Oman Advantage Stock Fund Meezan Islamic Fund Meezan Islamic Income Fund Pakistan Income Fund Pakistan Stock Market Fund Pakistan Capital Market Fund KASB Balanced Fund KASB Cash Fund KASB Islamic Fund KASB Liquid Fund KASB Stock Market Fund Alfalah GHP Cash Fund Alfalah GHP Value Fund Alfalah GHP Islamaic Fund Alfalah GHP Alfa Fund Faysal Balanced Growth Fund Faysal Savings Growth Fund Faysal Money Market Fund AKD Income Fund AKD Opportunity Fund AKD Index Tracker Fund AKD Index Tracker Fund Dawood Money Market Fund

01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul 01-Jul

07-Jul 05-Jul 06-Jul 06-Jul 04-Jul 04-Jul 04-Jul 04-Jul 04-Jul 04-Jul 04-Jul 04-Jul 03-Jul 07-Jul 07-Jul 07-Jul 08-Jul 08-Jul 08-Jul 08-Jul 08-Jul 08-Jul 08-Jul 06-Jul

D/B/R -

Spot AGM/Date -

INDICATIONS # Extraordinary General Meeting

OTHER SECTORS Symbols Climax Eng. TRG Pakistan Ltd. Murree Brewery Co.

Open 2.01

High 3.01

Low Close 1.1

Change

Vol

3.01

1000

2.54

2.65

2.4

2.56

0.02

1698438

111.1

112.8

111.1

192

P.I.A.C.(A)

2.16

2.25

2.11

2.14

-0.02

30484

Pace (Pak) Ltd.

2.22

2.39

2.15

2.18

-0.04

847954

20.45

20.78

20.26

20.46

0.01

76810

Netsol Technologies

Friday, July 1, 2011 Atlas Insurance

FIXED LINE TELECOMMUNICATION

EFU General Insurance

Performance of SR Fixed Line Telecommunication Index Open 920.34 Turnover 875,443 P/E (x) 4.54 Paid up Cap(mn)

Company

High Low 929.93 909.11 Total cos Defaulter cos 5 P/BV (x) ROE (%) 0.58 12.84

Open

High

Low

Close Chg

Pak Datacom 78 28.83 Pak.Telecomm Co A XD 37740 11.66 Telecard 3000 2.61 WorldCall Tele 8606 Wateen Telecom Ltd 6175 -

30.00 14.32 1.54 2.05 2.16

31.25 14.40 1.55 2.20 2.25

29.60 14.15 1.50 2.03 2.04

29.98 14.22 1.54 2.11 2.08

-0.02 -0.10 0.00 0.06 -0.08

Close 916.37 Listed cap 50,077.79 mn Payout (%) 62.56

Volume 3401 347289 44261 480492 165433

443

Change -3.97 Market cap 57,463.50 mn Div Yield (%) 13.77

% Change -0.43 5-Day High 934.27 5-Day Low 916.37

Last 60 days High Low

2010 Div BR (%) (%)

47.94 17.83 1.95 2.89 3.20

80 17.5 1 -

28.71 14.15 1.40 1.94 2.04

2011 Div BR (%) (%)

- 15.00 -

3.48

27.70

28.00

28.00 0.30

1449

1250 12.95

35.37

35.49

34.25

34.71 -0.66

5282

Paid up Cap(mn)

Company

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

3426 198 11572 1560 7932 126 8803 3673 3541 191 1367

Open

High

Low

7.53 2.12 5.47 2.47 2.20 5.47 -

8.40 0.55 37.77 1.30 2.20 2.75 42.50 13.57 15.51 19.14 1.30

9.10 0.59 37.90 1.35 2.22 2.84 42.79 13.90 15.60 20.14 1.35

9.00 0.50 37.41 1.10 2.14 2.74 42.25 13.53 15.40 19.70 1.21

Close 1,333.83 Listed cap 95,369.29 mn Payout (%) 104.13

Change -4.71 Market cap 103,102.09 mn Div Yield (%) 7.85

Close Chg

Volume

Last 60 days High Low

9.10 0.51 37.50 1.27 2.15 2.74 42.61 13.72 15.44 19.75 1.31

32946 1126 405796 30015 292461 2272 98463 691159 214146 7840 86054

9.93 0.80 38.50 1.70 2.74 4.00 44.19 17.25 17.75 23.26 1.80

0.70 -0.04 -0.27 -0.03 -0.05 -0.01 0.11 0.15 -0.07 0.61 0.01

8.00 0.45 36.70 0.97 2.13 2.11 41.05 13.47 15.40 15.51 1.13

2010 Div BR (%) (%) 50 50 20 -

GAS WATER AND MULTIUTILITIES Performance of SR Gas Water and Multiutilities Index Open 1,277.25 Turnover 1,313,244 P/E (x) 8.32 Paid up Cap(mn)

Company Sui North Gas Sui South Gas

5491 14.23 8390 4.89

Open

High

19.65 20.65

20.40 21.68

High Low 1,333.58 1,278.78 Total cos Defaulter cos 2 P/BV (x) ROE (%) 0.95 11.41 Low 19.60 20.75

Close Chg 19.92 0.27 21.67 1.02

Close 1,317.88 Listed cap 12,202.80 mn Payout (%) 66.79

Volume 340376 972868

Change 40.63 Market cap 29,118.61 mn Div Yield (%) 8.03

Last 60 days High Low 23.60 24.94

17.64 20.40

% Change 3.18 5-Day High 1,326.68 5-Day Low 1,267.13

2010 Div BR (%) (%) 20 15

2011 Div BR (%) (%)

25B

BANKS Performance of SR Banks Index Open 1,128.13 Turnover 15,420,493 P/E (x) 7.21 Paid up Cap(mn)

Company

Open

Allied Bank Limited Askari Bank XB Bank Alfalah Bank AL-Habib Bank Of Khyber XR Bank Of Punjab BankIslami Pak Faysal Bank Habib Bank Ltd

8603 6.33 64.93 7070 4.95 10.94 13492 5.04 9.59 8786 6.24 29.22 5004 2.11 4.65 5288 6.11 5280 9.19 3.40 7327 7.02 9.24 11021 7.25 116.06 Habib Metropolitan Bank XB 10478 6.26 21.49 JS Bank Ltd 8150 48.40 2.40 KASB Bank Ltd 9509 1.35 MCB Bank Ltd 8362 8.05 199.30 Meezan Bank XB 8030 5.98 17.03 Mybank Ltd 5304 2.70 National Bank 16818 3.96 50.03 NIB Bank XR 40437 1.52 Samba Bank 14335 21.38 1.74 Silkbank Ltd 26716 15.81 2.61 Soneri Bank 6023 2.54 5.45 Stand Chart Bank 38716 6.63 8.05 Summit Bank Ltd 8701 3.77 United Bank Ltd 12242 7.27 62.22

High

High Low Close 1,143.59 1,116.65 1,127.64 Total cos Defaulter cos Listed cap 27 - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.01 13.94 40.49 Low

Close Chg

64.89 62.51 64.14 -0.79 11.00 10.79 10.88 -0.06 9.60 9.42 9.57 -0.02 29.70 28.76 29.47 0.25 4.84 4.50 4.73 0.08 6.17 5.76 5.84 -0.27 3.49 3.28 3.40 0.00 9.55 9.15 9.26 0.02 116.90 116.00 116.06 0.00 22.45 21.01 21.77 0.28 2.45 2.32 2.42 0.02 1.45 1.32 1.39 0.04 201.74 198.75 199.30 0.00 17.50 17.20 17.47 0.44 2.99 2.67 2.74 0.04 50.77 50.04 50.42 0.39 1.57 1.50 1.51 -0.01 1.75 1.70 1.71 -0.03 2.66 2.51 2.53 -0.08 5.59 5.00 5.07 -0.38 8.30 7.90 8.22 0.17 3.90 3.62 3.76 -0.01 62.48 61.35 61.91 -0.31

Volume

Change -0.49 Market cap 666,020.03 mn Div Yield (%) 5.62

Last 60 days High Low

13932 68.99 131422 12.99 2615641 11.20 4438514 30.65 2799 6.25 2103627 7.35 10699 4.18 35356 11.30 46240 126.80 1723304 22.45 219033 3.00 210155 1.77 235080 210.95 14405 19.49 9915 3.60 1209331 57.25 1403301 2.10 13007 2.20 682165 3.06 167807 6.94 4820 9.75 94685 4.75 129940 65.01

58.51 10.79 9.42 28.25 4.05 4.51 3.25 9.00 114.10 17.00 2.06 1.16 196.51 16.60 1.60 49.51 1.47 1.62 2.02 5.00 7.70 2.67 61.00

% Change -0.04 5-Day High 1,142.41 5-Day Low 1,119.79

2010 Div BR (%) (%)

NON LIFE INSURANCE Open 738.39 Turnover 517,196 P/E (x) 8.58 Paid up Cap(mn)

Company

Adamjee Insurance XD

1237

High Low 745.96 730.50 Total cos Defaulter cos 34 22 P/BV (x) ROE (%) 0.45 5.20

Close 738.48 Listed cap 11,111.34 mn Payout (%) 79.54

11.11

11.07

11.02

11.03 -0.08

757

16.05

10.95

25 12.5B

Symbols

Open

High

Low

69.05

72.50

69.00

72.50 3.45

99940

103.00

65.10

55B 10.00

AZAMT

2.12

2.25

2.12

0.00

100

3000

5.52

16.19

16.30

15.80

15.90 -0.29

194292

20.28

12.43

AZTM CENI

0.25 8.10

0.31 8.48

0.25 8.10

0.00 0.00

100 100

Premier Insurance

303

3.72

8.34

8.40

8.11

8.34 0.00

478

11.10

8.00

GTYR

23.10

23.40

23.00

23.10

0.00

100

Reliance Insurance

284

4.54

6.82

7.50

7.10

7.44 0.62

8000

7.70

5.76

- 12.5B

GUTM MOON

18.60 8.90

19.60 8.00

18.60 8.00

0.00 -0.90

100 100

NBF NJLIC POML MIRKS

4.82 57.89 40.00 49.12

4.99 58.30 38.00 47.88

4.98 58.30 38.00 46.75

4.82 57.89 40.00 49.12

0.00 0.00 0.00 0.00

100 100 100 64

Pak Reinsurance

Silver Star Insurance

291

0.91

4.61

5.20

5.00

5.20 0.59

1000

7.00

4.21

15B

United Insurance

496

1.83

5.25

5.94

4.35

5.26 0.01

180241

8.49

4.23

24B

LIFE INSURANCE Performance of SR Life Insurance Index Open 933.46 Turnover 1,101 P/E (x) 5.27 Company

Open

High

Low

Close Chg

Volume

Last 60 days High Low

6.97

64.99

65.50

64.51

64.99 0.00

25647

71.99

62.00

% Change 0.01 5-Day High 738.48 5-Day Low 731.80

2010 Div BR (%) (%) 25

2011 Div BR (%) (%)

High Low 937.68 935.91 Total cos Defaulter cos 4 P/BV (x) ROE (%) 1.50 3.85

Paid up Cap(mn)

Open

High

Low

Close Chg

500

7.50

1.11

1.59

1.20

1.20 0.09

East West Life

Close 933.87 Listed cap 2,290.72 mn Payout (%) 355.53

Change 0.41 Market cap 10,377.95 mn Div Yield (%) 9.11

Last 60 days High Low

Volume 1001

2.45

% Change 0.04 5-Day High 937.52 5-Day Low 923.91

2010 Div BR (%) (%)

1.11

2011 Div BR (%) (%)

10R

FINANCIAL SERVICES Performance of SR Financial Services Index Open 271.52 Turnover 2,776,278 P/E (x) 11.46 Paid up Cap(mn)

High Low 277.13 265.36 Total cos Defaulter cos 41 6 P/BV (x) ROE (%) 0.18 0.91

Close 269.58 Listed cap 30,336.44 mn Payout (%) 99.56

Change -1.93 Market cap 13,552.68 mn Div Yield (%) 5.05

Last 60 days High Low

% Change -0.71 5-Day High 285.99 5-Day Low 269.58

2010 Div BR (%) (%)

2011 Div BR (%) (%)

Change

Vol

FNEL BCL

2.91 49.00

2.85 49.80

2.01 49.80

2.91 49.00

0.00 0.00

54 50

SHFA GRAYS

33.87 41.84

33.90 42.89

33.87 41.84

0.00 0.00

50 26

BCML PMRS

16.00 39.61

16.50 39.50

16.50 37.65

16.00 39.61

0.00 0.00

25 11

GLPL

57.12

54.57

57.12

0.00

IGIBL UVIC

1.65 2.00

1.70 2.24

1.65 2.00

0.00 0.00

10 10

GHGL

52.55

52.60

52.55

0.00

PTEC FCONM FFLM

3.30 1.62 1.46

3.38 1.90 1.75

2.51 1.90 1.75

3.30 1.62 1.46

0.00 0.00 0.00

8 5 5

FNBM JOPP

5.91 9.00

6.00 10.00

6.00 8.17

5.91 9.00

0.00 0.00

5 4

CWSM JDMT

1.60 14.08

1.60 13.14

1.25 13.13

1.60 14.08

0.00 0.00

2 2

KOHS MWMP SCLL

3.50 1.00 2.50

4.00 0.98 2.74

3.17 0.81 2.74

3.50 1.00 2.50

0.00 0.00 0.00

2 2 2

Open

High

Low

Close Chg

CJPL CSM

0.60 0.49

0.98 0.54

0.60 0.49

0.00 0.00

1 1

0.85 5.51

0.44 21.00

0.48 21.60

0.26 21.00

0.41 -0.03 21.59 0.59

21849 4710

0.69 24.97

0.26 20.70

20B

FCIBL GFIL

5.24 4.40

5.25 4.50

5.24 4.40

0.00 0.00

1 1

Arif Habib Limited Arif Habib Corp Dawood Equities

450 20.71 3750 3.52 250 -

18.67 26.62 1.30

19.67 27.20 1.30

18.68 26.05 1.30

19.67 1.00 26.30 -0.32 1.30 0.00

154534 1876956 5000

20.20 27.29 1.99

12.01 20.53 1.10

30 -

20B -

HADC HAL

0.42 12.26

0.63 12.70

0.42 12.26

0.00 0.00

1 1

Escorts Bank Invest and Fin Sec

441 600 20.27

1.97 8.00

2.13 7.96

1.80 7.50

1.93 -0.04 7.50 -0.50

1184 1001

2.25 9.29

1.56 7.00

11.5

PAKT PRET

96.72 29.76

99.40 31.14

96.72 29.76

0.00 0.00

1 1

SGML TSPL

6.34 0.90

6.50 0.98

6.34 0.90

0.00 0.00

1 1

Company

AMZ Ventures Arif Habib Investments

225 360

Volume

Invest Bank Ist Cap Securities

2849 3166

0.40 2.30

0.45 2.44

0.30 2.43

0.32 -0.08 2.43 0.13

114345 15100

1.20 3.30

0.22 2.22

10B

Ist Dawood Bank

626

0.71

1.45

1.59

1.55

1.59 0.14

1500

1.96

1.26

1662906 427011

8.34 3.40

4.82 2.31

10 -

Low

ENGRO-JUL 162.74

166.00

161.50

164.95

23.10

16.42

LUCK-JUL

71.51

72.00

70.85

71.63

0.12

400500

51.21

51.35

50.35

50.68

-0.53

242500

Jah Siddiq Co JOV and CO

7633 508

6.56 2.68

6.65 2.79

6.41 2.45

6.48 -0.08 2.52 -0.16

JS Global Cap

500

5.34

19.24

18.70

18.30

18.57 -0.67

JS Investment KASB Securities

1000 42.50 1000 -

Orix Leasing Pervez Ahmed Sec Sec Inv Bank Security Leasing Trust Inv Bank

821 775 514 363 586

3.38 5.14 4.48 0.25

Symbols

Open

High

Change 2.21

Vol 859000

5.10 3.40

5.20 3.45

5.10 3.30

5.10 0.00 3.31 -0.09

66343 996

6.43 4.79

4.53 3.10

NML-JUL ATRL-JUL

125.56

126.25

123.65

124.04

5.57 1.54 1.89 1.97 1.07

5.89 1.59 1.79 2.00 1.34

5.36 1.32 1.45 2.00 1.00

5.57 1.44 1.79 2.00 1.01

131 219750 2500 50000 26452

6.19 1.99 4.00 2.55 2.29

5.00 1.32 1.31 1.50 0.83

FFC-JUL

153.90

154.00

151.30

151.76

-2.14

214000

FFBL-JUL

43.19

43.30

42.10

42.32

-0.87

176500

POL-JUL

362.75

364.00

361.25

362.01

-0.74

144500

23.23

23.45

23.09

23.13

-0.10

139000

0.00 -0.10 -0.10 0.03 -0.06

DGKC-JUL

-1.52

223500

NBP-JUL

50.58

51.25

50.50

51.14

0.56

MCB-JUL

201.45

203.00

201.00

201.38

-0.07

PPL-JULB

208.55

209.45

208.25

208.70

0.15

30500

Performance of SR Equity Investment Instruments Index

PTC-JUL

14.52

14.41

14.37

14.39

-0.13

20000

UBL-JUL

63.12

62.90

-0.22

5000

ABL-CAUG

66.68

0.00

ABL-CJUL

Open 1,539.46 Turnover 794,826 P/E (x) 20.13 Paid up Cap(mn)

Company

900

FUTURE CONTRACTS

EQUITY INVESTMENT INSTRUMENTS

AL-Meezan Mutual F.

High Low 1,563.92 1,520.23 Total cos Defaulter cos 52 11 P/BV (x) ROE (%) 0.44 2.21

Close 1,540.60 Listed cap 29,771.58 mn Payout (%) 104.74

Change 1.13 Market cap 19,556.00 mn Div Yield (%) 8.08

Open

High

Low

Close Chg

Volume

Last 60 days High Low

% Change 0.07 5-Day High 1,540.60 5-Day Low 1,515.36

2010 Div BR (%) (%)

2011 Div BR (%) (%)

1375

4.76

11.25

11.10

11.10 -0.15

18000

11.32

10.05

18.5

5.00

Atlas Fund of Funds

525

1.73

6.50

6.50 0.00

300000

6.90

6.11

2.2

B R R Guardian Mod.

780

2.28

2.10

2.19

2.18

2.19 0.09

1000

2.91

1.29

Elite Cap Modaraba

113

4.43

3.00

3.19

3.19 0.19

1000

3.50

2.30

Equity Modaraba

524

6.58

1.21

1.44

1.22

1.25 0.04

3024

2.50

1.18

First Capital Mutual F.

300

1.89

1.55

2.54

1.85

2.50 0.95

101555

4.60

1.51

581

1.37

1.85

2.29

2.29 0.44

1000

2.47

1.82

3.15 -0.06

22377

3.85

3.11

First Dawood Mutual F. Golden Arrow

760

2.09

3.21

3.38

3.15

H B L Modaraba

397

3.92

7.76

8.32

7.60

8.00 0.24

7510

8.44

7.10

Habib Modaraba

1008

4.22

8.06

8.21

8.14

8.15 0.09

10715

8.44

7.26

JS Growth Fund

3180

2.03

5.90

6.20

5.91

5.90 0.00

174

7.40

5.85

12.5

JS Value Fund

1186

Pak Modaraba

Change 0.10 Market cap 45,858.02 mn Div Yield (%) 9.27

UPTO 100 VOLUME

7.66

Mod Al-Mali

Performance of SR Non Life Insurance Index

12.5

6.00

2011 Div BR (%) (%)

40 10B - 10B 20 20B -64.41R - 20B 65 10B - 20B - 33R -105.16R 115 10B 30.00 - 15B 75 25B -154.79R -63.46R - 311R 6 - 20R 50 -

29.01

450

2011 Div BR (%) (%)

- 25.00 7.8R - 30.00 - 10.00 -

39.65

20B

970

% Change -0.35 5-Day High 1,338.54 5-Day Low 1,323.12

Habib Insurance

Performance of SR Electricity Index High Low 1,347.79 1,327.82 Total cos Defaulter cos 15 1 P/BV (x) ROE (%) 1.24 9.35

26.00

IGI Insurance

ELECTRICITY Open 1,338.54 Turnover 1,862,279 P/E (x) 13.26

29.25

0.58

5.64

5.60

5.06

5.50 -0.14

21658

6.68

5.01

5.00

184 14.29

1.00

1.11

1.00

1.00 0.00

529

1.40

0.85

125

0.85

1.00

1.00 0.15

1834

1.50

0.45

Pak Oman Advantage

1000

9.17

8.17

9.17 0.00

149

9.75

4.26

1.04

PICIC Energy Fund

1000

2.17

7.35

7.36

7.35

7.35 0.00

1015

8.25

6.92

- 10.00

PICIC Growth Fund

2835

2.75

13.30

13.74

13.30

13.38 0.08

13.74

12.00

- 12.50

PICIC Inv Fund

2841

2.31

5.96

5.86

5.75

5.85 -0.11

1613

6.95

5.50

7.50

159178

Punjab Modaraba

340

0.96

1.13

0.99

0.99 0.03

100002

1.99

0.26

Safeway Mutual Fund

545

2.44

7.00

7.75

6.00

6.67 -0.33

1321

7.99

5.75

18.2

Stand Chart Modaraba

454

5.56

10.07

10.50

9.92

10.07 0.00

215

10.90

9.50

Tri-Star 1st Modaraba

212 95.00

1.30

2.00

1.40

1.90 0.60

28020

2.05

0.20

1.20

2.00

1.00

1.58 0.38

12821

2.00

0.72

Tri-Star Mutual

1.05

60000 36500

0.00

65.87

-0.81

65.80

0.00

65.01

-0.79

ABL-CJUNW4 64.93

0.00

64.14

-0.79

ABL-CSEP

67.77

0.00

66.95

-0.82

0.00

AICL-CAUG

66.74

0.00

66.74

0.00

AICL-CJUL

65.86

0.00

65.87

0.01

0.00

AICL-CJUNW464.99

0.00

64.99

0.00

AICL-CSEP

0.00

67.84

0.01

0.00

67.83

0.00 0.00

MTS LEVERAGE POSITION Symbol AHCL AICL AKBL ANL ATRL BAFL DGKC ENGRO FFBL FFC KAPCO LOTPTA LUCK MCB NBP NCL NML OGDC PAKRI POL PPL PSO PTC SSGC UBL TOTAL

Total Volume 713,867 19,200 622,333 297,850 61,475 1,002,843 534,408 495,253 432,700 5,700 90,000 3,287,189 34,750 29,575 676,160 343,581 458,275 8,500 296,100 8,500 36,800 78,189 3,156 3,000 12,500 9,551,904

Total Value 12,940,508 935,629 5,145,621 1,247,078 5,648,448 7,269,875 9,065,083 60,228,437 13,855,496 649,374 2,890,299 34,772,794 1,834,483 4,429,258 25,520,546 5,853,740 17,509,038 973,653 3,531,395 2,260,064 5,732,658 15,785,933 34,363 46,298 582,192 238,742,265

MTS Rate 20.44 20.00 19.00 17.26 19.14 16.09 21.35 15.00 15.00 17.20 15.00 17.06 16.18 17.00 18.70 16.00 19.29 16.00 17.45 17.78 17.60

BOARD MEETINGS

Fauji Fertiliser Bin Qasim Ltd

KSE 100 INDEX

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position

61.10

Support 1

12,415.95

MA (5-day)

12,442.10

Support 2

12,335.90

MA (10-day)

12,394.18

Resistance 1

12,560.25

MA (100-day)

11,974.64

Resistance 2

12,624.45

Target Price

Arif Habib Ltd

Recommendations

42.2

Arif Habib Ltd

45.52

Accumulate

AKD Securities Ltd

TFD Research

44.25

Neutral

TFD Research

Technical Outlook Technical Analysis

Leverage Position

Brokerage House

Target Price

Recommendations

144

Hold

AKD Securities Ltd

Reduce

TFD Research

AKD Securities Ltd

120.7

TFD Research

129.4

Negative

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

Leverage Position

56.87 149.71 138.62 129.06

MTS Shares `000 5.70 MTS Rs `000 649.37 MTS Rate 15.00 ** NOI Rs (mn) 81.42 Free Float Rs (mn) 70,136.37 Target price for Dec-11 & **Net Open Interest in future market

Free Float Shares (mn) 466.49

74.65 78.6

Recommendations

224

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

Accumulate

245.4

Positive

TFD Research

14.01

Positive

Technical Outlook

Leverage Position

30.24 168.28 199.22 194.05 Free Float Shares (mn) 176.98

MTS Shares `000 MTS Rs `000 MTS Rate ** NOI Rs (mn) Free Float Rs (mn)

495.253 60,228.44 21.35 164.18 28,891.64

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

and Bollinger Bands were 24 per cent narrower than normal.

ENGRO is currently 15.9 per cent below its 200-day moving average and BAFL is currently 4.9 per cent below its 200-day moving average and is

to the average volatility over the last 10 trading sessions. Volume indica- the average volatility over the last 10 trading sessions. Volume indicators tors reflect volume flowing into and out of ENGRO at a relatively equal reflect volume flowing into and out of BAFL at a relatively equal pace. pace. Trend forecasting oscillators are currently bearish on ENGRO.

Brokerage House AKD Securities Ltd

MTS Shares `000 458.275 MTS Rs `000 17,509.04 MTS Rate 18.70 ** NOI Rs (mn) 31.82 Free Float Rs (mn) 8,849.77 Target price for Dec-11 & **Net Open Interest in future market

Leverage Position

37.13 MTS Shares `000 1,002.843 9.80 MTS Rs `000 7,269.88 10.17 MTS Rate 19.14 10.05 ** NOI Rs (mn) N/A Free Float Shares (mn) 674.58 Free Float Rs (mn) 6,455.71 Target price for Dec-11 & **Net Open Interest in future market

is displaying a downward trend. Volatility is extremely high when compared displaying a downward trend. Volatility is relatively normal as compared to

Arif Habib Ltd

25.56 53.85 60.98 59.23

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

ENGRO closed up 2.37 at 163.25. Volume was 24 per cent above average BAFL closed down -0.02 at 9.57. Volume was 56 per cent above average and Bollinger Bands were 77 per cent wider than normal.

Positive

Free Float Shares (mn) 175.80

Hold

11.75

Technical Analysis

Buy

Leverage Position

Recommendations

11.6

AKD Securities Ltd

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

Technical Outlook Technical Analysis

Target Price

Arif Habib Ltd

Neutral

National Bank of Pakistan

Recommendations

Brokerage House

Buy

195.41

Target Price

Recommendations

Trend forecasting oscillators are currently bearish on BAFL.

Oil & Gas Development Co Ltd

Brokerage House

Buy

Arif Habib Ltd

64.99

Buy

AKD Securities Ltd

Positive

TFD Research

Technical Outlook Technical Analysis

Target Price

Technical Outlook

Nishat Mills Ltd

Fauji Fertiliser Co

Arif Habib Ltd

Brokerage House

Hold

AKD Securities Ltd

RSI (14-day) 45.30 MTS Shares `000 432.70 MA (200-day) 11,613.73 Pivot 12,480.15 MA (10-day) 42.59 MTS Rs `000 13,855.50 41.66 MTS Rate 15.00 KSE 100 INDEX closed up 72.73 points at 12,496.03. Volume was MA (100-day) MA (200-day) 37.81 ** NOI Rs (mn) 31.05 10 per cent below average and Bollinger Bands were 50 per cent Free Float Shares (mn)326.94 Free Float Rs (mn) 13,780.46 narrower than normal. As far as resistance level is concern, the marTarget price for Dec-11 & **Net Open Interest in future market ket will see major 1st resistance level at 12,560.25 and 2nd resistFFBL closed down -0.79 at 42.15. Volume was 17 per cent above averance level at 12,624.45, while Index will continue to find its 1st supage and Bollinger Bands were 20 per cent narrower than normal. port level at 12,415.95 and 2nd support level at 12,335.90. KSE 100 INDEX is currently 7.6 per cent above its 200-day moving FFBL is currently 11.3 per cent above its 200-day moving average average and is displaying an upward trend. Volatility is relatively nor- and is displaying a downward trend. Volatility is relatively normal as mal as compared to the average volatility over the last 10 trading compared to the average volatility over the last 10 trading sessions. sessions. Volume indicators reflect moderate flows of volume into Volume indicators reflect volume flowing into and out of FFBL at a INDEX (mildly bullish). Trend forecasting oscillators are currently relatively equal pace. Trend forecasting oscillators are currently bullish on INDEX. bearish on FFBL.

Bank Al-Falah Ltd

Engro Corporation

92.3

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

39.85 50.74 59.69 64.67

Leverage Position

MTS Shares `000 676.16 MTS Rs `000 25,520.55 MTS Rate 16.18 ** NOI Rs (mn) 30.65 Free Float Rs (mn) 20,073.33 Target price for Dec-11 & **Net Open Interest in future market

Free Float Shares (mn) 398.12

143.2 145 145.25

Recommendations Sell Neutral Neutral

Technical Outlook

Technical Outlook Technical Analysis

Target Price

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

Leverage Position

52.63 152.88 148.28 154.69

MTS Shares `000 8.50 MTS Rs `000 973.65 MTS Rate 16.00 ** NOI Rs (mn) N/A Free Float Rs (mn) 96,514.34 Target price for Dec-11 & **Net Open Interest in future market

Free Float Shares (mn) 630.85

FFC closed down -1.98 at 150.35. Volume was 30 per cent below average NML closed down -0.26 at 50.34. Volume was 25 per cent below average NBP closed up 0.39 at 50.42. Volume was 50 per cent below average (consol- OGDC closed up 4.15 at 152.99. Volume was 20 per cent above average and Bollinger Bands were 10 per cent narrower than normal. FFC is currently 16.3 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to

and Bollinger Bands were 35 per cent wider than normal.

and Bollinger Bands were 57 per cent narrower than normal. idating) and Bollinger Bands were 67 per cent narrower than normal. NML is currently 15.0 per cent below its 200-day moving average and is NBP is currently 22.0 per cent below its 200-day moving average and is OGDC is currently 1.1 per cent below its 200-day moving average and is displaying a downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators

displaying a downward trend. Volatility is relatively normal as compared to displaying a downward trend. Volatility is extremely high when compared

the average volatility over the last 10 trading sessions. Volume indicators to the average volatility over the last 10 trading sessions. Volume indicareflect very strong flows of volume out of NML (bearish). Trend forecasting reflect moderate flows of volume into FFC (mildly bullish). Trend forecast- oscillators are currently bearish on NML. Momentum oscillator is currently reflect volume flowing into and out of NBP at a relatively equal pace. Trend tors reflect volume flowing into and out of OGDC at a relatively equal pace. Trend forecasting oscillators are currently bearish on OGDC. forecasting oscillators are currently bearish on NBP. ing oscillators are currently bullish on FFC. indicating that NML is currently in an oversold condition. the average volatility over the last 10 trading sessions. Volume indicators

Company

Date

Time

Pakistan Income Fund Pakistan Stock Market Fund Pakistan Capital Market Fund KASB Liquid Fund KASB Stock Market Fund KASB Balanced Fund KASB Islamic Income Fund KASB Cash Fund Pak Oman Advantage Stock Fund NI(U)T Fund NIT Government Bond Fund NIT Income Fund ABL Islamic Cash Fund United Growth & Income Fund United Stock Advantage Fund Alfalah GHP Value Fund Alfalah GHP Islamic Fund Alfalah GHP Alpha Fund Alfalah GHP Cash Fund Meezan Islamic Fund

04-Jul 04-Jul 04-Jul 04-Jul 04-Jul 04-Jul 04-Jul 04-Jul 05-Jul 05-Jul 05-Jul 05-Jul 06-Jul 07-Jul 07-Jul 07-Jul 07-Jul 07-Jul 07-Jul 07-Jul

5:00 5:00 5:00 5:00 3:30 3:30 3:30 3:30 3:30 3:30 11:30 11:30 12:00 12:00 12:00 6:00 4:00 7:12 7:12 4:00

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

RSI 1st 2nd (14-day) Support 45.64 2.60 2.55 52.18 62.80 61.45 28.69 48.05 47.60 62.26 25.85 25.35 66.24 19.00 18.35 42.85 64.50 64.00 27.79 10.80 10.70 36.39 5.45 5.35 39.99 372.85 371.40 42.73 121.80 120.85 37.26 9.45 9.35 36.31 3.30 3.20 37.49 5.65 5.50 45.44 1.60 1.55 47.28 22.80 22.65 43.40 2.55 2.45 45.35 2.00 1.90 40.08 34.15 33.60 30.29 160.75 158.20 36.90 9.10 8.90 33.97 4.10 4.05 45.36 41.70 41.30 56.85 149.15 147.95 42.06 115.75 115.40 48.80 37.30 37.10 39.77 151.20 150.60 40.25 217.65 215.35 32.96 2.40 2.25 51.13 1.15 1.00 43.01 2.35 2.25 44.21 6.35 6.25 46.21 42.30 42.00 37.45 2.10 2.05 31.67 13.75 13.65 47.87 70.25 69.70 41.58 198.10 196.95 36.81 1.95 1.85 39.82 50.05 49.70 31.26 21.90 21.55 37.05 20.20 20.00 32.09 1.50 1.45 56.89 2.70 2.65 25.63 49.85 49.35 52.68 149.55 146.15 30.94 2.10 2.00 36.19 1.30 1.20 37.50 2.10 2.05 49.47 5.35 5.25 60.17 357.50 355.95 40.79 206.25 205.40 33.39 62.05 61.55 32.95 260.45 256.30 19.25 14.10 14.00 52.85 223.50 221.95 46.27 19.55 19.15 37.03 16.20 15.60 48.25 21.05 20.45 38.41 1.50 1.45 42.38 2.45 2.30 38.92 61.35 60.80 47.09 2.00 1.95

1st

2nd

Resistance 2.70 2.75 65.20 66.25 49.45 50.35 27.00 27.65 20.00 20.35 65.50 66.00 11.00 11.10 5.65 5.80 376.85 379.40 124.40 126.05 9.65 9.70 3.50 3.60 6.10 6.35 1.75 1.80 23.20 23.45 2.70 2.80 2.10 2.20 35.40 36.05 165.15 167.00 9.50 9.70 4.20 4.30 42.80 43.40 152.40 154.45 116.65 117.20 37.80 38.10 152.60 153.40 223.65 227.30 2.75 2.95 1.40 1.50 2.50 2.55 6.60 6.75 42.85 43.10 2.20 2.25 14.00 14.15 71.25 71.70 201.10 202.90 2.20 2.35 50.80 51.15 22.95 23.60 20.75 21.00 1.60 1.65 2.90 3.05 50.85 51.40 154.95 156.95 2.35 2.50 1.60 1.70 2.20 2.25 5.75 6.00 361.25 363.45 208.45 209.80 63.50 64.45 270.60 276.65 14.35 14.50 227.35 229.65 20.35 20.75 17.15 17.60 22.00 22.30 1.60 1.65 2.70 2.80 62.45 63.05 2.20 2.30

Pivot 2.65 63.85 48.95 26.50 19.35 65.00 10.90 5.55 375.40 123.45 9.55 3.40 5.90 1.70 23.05 2.65 2.05 34.80 162.60 9.30 4.15 42.35 151.20 116.30 37.60 152.00 221.35 2.60 1.25 2.40 6.50 42.55 2.15 13.90 70.70 199.95 2.10 50.40 22.60 20.50 1.55 2.85 50.35 151.55 2.25 1.45 2.15 5.65 359.70 207.60 63.00 266.45 14.25 225.80 19.95 16.60 21.35 1.55 2.55 61.90 2.10

TFD SUPPLEMENT

Friday, July 1, 2011

63rd Anniversary of

Six Decades of Vigilance, Regulations & Excellence Syed Zahid Hussain Bukhari (Retd) Sr Vice President, Habib Bank Ltd

rom barter system to paper currency notes, to start of banks in fifteenth century in UK, the world experienced a great struggle of human advancement, spread over thousands of years. Even since (15th century) the structure of banking kept on improving and advancing till present time, when banking has become an integral part of all human activities. With the mighty spread of banks all over the world there arose a dire need of some organization in each and every country to supervise, advise and regulate the banking affairs in the interest of general public as well as the country it self. Such institution which supervise and regulate the banks are called by different names such as Central Bank, Reserve Bank, Federal Bank, State Bank etc. In most of the countries

these controllers are backed by governments, usually ministry of finance. These banks are usually authorised for the issuance of currency, to manage inflation and deflation, to manage foreign currency etc. Further these supervisory banks are also to raise capital for government's needs by selling its securities and bonds. After partition of the sub continent, Pakistan emerged on world map as on 14th August 1947, and central bank of the country was established as on 1st July 1948. Father of the nation Quaid e Azam Mohammad Ali Jinnah performed the opening ceremony of the State Bank of Pakistan. For the benefits of all Pakistanis I intend to quote here the full speech of the great Quaid delivered at the opening ceremony, just to realize that what high opinion the great Quaid had for the newly born country and its people and where we stand today. Quaid-e-Azam's Speech On the occasion of the Opening Ceremony of the State Bank of Pakistan on

1st July, 1948. "Mr. Governor, Directors of State Bank, Ladies and Gentlemen. The opening of the State Bank of Pakistan symbolises the sovereignty of our State in the financial sphere and I am very glad to be here today to perform the opening ceremony. It was not considered feasible to start a Bank of our own simultaneously with the coming into being of Pakistan in August last year. A good deal of preparatory work must precede the inauguration of an institution responsible for such technical and delicate work as note issue and banking. To allow for this preparation, it was provided, under the Pakistan Monetary System and Reserve Bank Order, 1947, that the Reserve Bank of India should continue to be the currency and banking authority of Pakistan till the 30th September, 1948. Later on it was felt that it would be in the best interests of our State if the Reserve Bank of India were relieved of its functions in Pakistan, as early as possible. The State of transfer of these functions to a Pakistan

agency was consequently advanced by three months in agreement with the Government of India and the Reserve Bank. It was at the same time decided to establish a Central Bank of Pakistan in preference to any other agency for managing our currency and banking. This decision left very little time for the small band of trained personnel in this field in Pakistan to complete the preliminaries and they have by their untiring effort and hard work completed their task by the due date which is very creditable to them, and I wish to record a note of our appreciation of their labours. As you have observed, Mr. Governor in undivided India banking was kept a close preserve of nonMuslims and their migration from Western Pakistan has caused a good deal of dislocation in the economic life of our young State. In order that the wheels of commerce and industry should run smoothly, it is imperative that the vacuum caused by the exodus of non-Muslims should be filled without delay. I am glad to note that schemes

for training Pakistan nationals in banking are in hand. I will watch their progress with interest and I am confident that the State Bank will receive the cooperation of all concerned including the banks and Universities in pushing them forward. Banking will provide a new and wide field in which the genius of our young men can find full play. I am sure that they will come forward in large numbers to take advantage of the training facilities which are proposed to be provided. While doing so, they will not only be benefiting themselves but also contributing to the well-being of our State. I need hardly dilate on the important role that the State Bank will have to play in regulating the economic life of our country. The monetary policy of the bank will have a direct bearing on our trade and commerce, both inside Pakistan as well as with the outside world and it is only to be desired that your policy should encourage maximum production and a free flow of trade. The monetary policy pursued during the war years contributed, in no small measure, to our present day economic problems. The abnormal rise in the cost of living has hit the poorer sections of society including those with fixed incomes very hard indeed and is responsible to a great extent for the prevailing unrest in the country. The policy of the Pakistan Government is to stabilise prices at a level that would be fair to the producer, as well as the consumer. I hope your efforts will be directed in the same direction in order to tackle this crucial problem with success. I shall watch with keenness the work of your Research Organization in evolving banking practices compatible with Islamic ideas of social and economic life. The economic system of the West has created almost insoluble problems for humanity and to many of us it appears that only a miracle can save it from disaster that is not facing the world. It has failed to do justice between man and man and to eradicate friction from the international field. On the contrary, it was largely responsible for the two world wars in the last half century. The Western world, in spite of its advantages, of mechanization and industrial efficiency is today in a worse mess than ever before in history. The adoption of Western economic theory and practice will not help us in achieving our goal of creating a happy and contended people. We must work our

destiny in our own way and present to the world an economic system based on true Islamic concept of equality of manhood and social justice. We will thereby be fulfilling our mission as Muslims and giving to humanity the message of peace which alone can save it and secure the welfare, happiness and prosperity of mankind. May the Sate Bank of Pakistan prosper and fulfil the high ideals which have been set as its goal. In the end I thank you, Mr. Governor, for the warm welcome given to me by you and your colleagues, and the distinguished guests who have graced this occasion as a mark of their good wishes and the honour your have done me in inviting me to perform this historic opening ceremony of the State Bank which I feel will develop into one of our greatest national institutions and play its part fully throughout the world." Q u a i d - e - A z a m Muhammad Ali Jinnah 1st July, 1948 Under the state bank of Pakistan order 1948, the state bank was charged

with the duty to regulate the issue of banks notes and keeping reserves with a view to securing monitory stability in Pakistan and generally to operate the currency and credit system of the country to its advantage. A large section of the state bank's duties were widened when the State Bank of Pakistan Act 1956 was introduced. It required the state bank to "regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller utilization of the country's productive resources". In February 1994, the State Bank was given full autonomy, during the financial sector reforms. On January 21, 1997, this autonomy was further strengthened when the government issued three Amendment Ordinances (which were approved by the Parliament in May 1997). Those included were the State Bank of Pakistan Act, 1956, Banking Companies Ordinance, 1962 and Banks Nationalization Act, 1974. These changes gave full and exclusive authority to the State Bank to regulate the banking sector, to conduct an independent monetary policy and to set limit on government borrowings from the State Bank of Pakistan. The amendments to the Banks Nationalization Act brought the end of the Pakistan Banking Council (an institution established to look after the affairs of NCBs) and allowed the jobs of the council to be

appointed to the Chief. The State Bank of Pakistan has also been entrusted with the responsibility to carry out monetary and credit policy in accordance with Government targets for growth and inflation with the recommendations of the Monetary and Fiscal Policies Co-ordination Board without trying to effect the macroeconomic policy objectives. The state bank also regulates the volume and the direction of flow of credit to different uses and sectors, the state bank makes use of both direct and indirect instruments of monetary management. During the 1980s, Pakistan embarked upon a program of financial sector reforms, which lead to a number of fundamental changes. Due to these changed the conduct of monetary management which brought about changes to the administrative controls and quantitative restrictions to market based monetary management. A reserve money management programme has been developed, for intermediate target of M2, which would be achieved by observing the desired path of reserve money - the operating target. State Bank of Pakistan has changed the format and designs of many bank notes which are currently in circulation in Pakistan. These steps were taken to overcome the problems of fraudulent activities. Thus the conclusion is that it has a great role to in the monetary life of a country, which if it plays right, could safeguard the economy along with ensuring growth in a satisfactory manner.

Friday, July 1, 2011

Oil holds at $112 as inflation worries stir

European vegetable oil prices

Mixed outlook as OPEC supply up, US stocks down LONDON: Oil prices held near $112 a barrel on Thursday as high inflation and uncertainty about the International Energy Agency's emergency stock release plan balanced against a weaker dollar. Comments from European Central Bank chief JeanClaude Trichet reinforced expectations of an interest rate hike next week, which traders and analysts said could stifle economic activity and energy demand. Concerns lingered that Greece could run into further problems even after Wednesday's initial vote to pass an austerity plan to avert bankruptcy. "It's not finished for Greece yet; there is a last vote," said Thorbjorn Bak Jensen, an oil analyst at Global Risk Management. "If the system tightens up well, Greece doesn't need a rate rise." ICE Brent crude was 40 cents lower at $112 a barrel at 1400 GMT, paring early losses of more than $1, after jumping

Indian sugar steady as profit-taking kicks in MUMBAI: India's sugar futures were steady on Thursday after rising to their highest level in more than a month in the previous session as profit-taking outweighed lower supplies for July, analysts and dealers said. At 3:08 pm, the most active sugar for July delivery on the National Commodity and Derivatives Exchange was 0.18 per cent lower at 2,756 rupees per 100 kg. The contract rose to 2,783 rupees in the previous session, the highest level since May 18. In Kolhapur, a key market in top producer Maharashtra, the most traded S-variety rose by 1.33 per cent to 2,672 rupees ($59.78) per 100 kg. "Profit-taking hit the market. Exports decision and lower quota for July have been providing support to prices," said Ashwini Bansod, a senior analyst at MF Global Commodities India. India has issued a formal order for exports of an additional 500,000 tonnes of sugar approved by a panel of ministers last week, government sources said on Tuesday. India has made available 1.56 million tonnes of non-levy sugar for July, lower than the 1.65 million tonnes it had released last month, the government said in a statement on Tuesday. Non-levy, or free-sale sugar, is sold by millers in the open market, but the quantity each mill can sell is fixed by the federal government on a monthly basis. -Reuters

more than 3 per cent on Wednesday. US crude was at $94.84 a barrel, up 7 cents, after gaining 2 per cent in the previous session. The International Energy Agency has sent conflicting signals to the market this week, saying on Wednesday it was up to operators to decide whether

to release crude oil or oil products as part of the emergency release plan. The Netherlands joined Germany in clarifying it would hold a tender to release crude oil as part of the IEA programme. The Dutch stockpiling agency said up to 700,000 barrels of crude oil would be offered on Friday. Other countries including Britain, France and Italy said they were not planning on tenders but would reduce minimum strategic stock reserve

requirements instead. The table provided by the International Energy Agency on Monday, which showed the breakdown of crude and products on its website, was purely indicative, Didier Houssin said. But the agency could decide whether to repeat the release around the third week of July, Richard Jones, IEA deputy executive director, said late on Wednesday. In the United States, oil stocks tightened as crude imports dropped and gasoline inventories fell unexpectedly. Crude supplies fell for a fourth straight week, government data showed, dropping 4.4 million barrels, much more than forecast, to 359.5 million barrels. But on the other hand, OPEC oil output is forecast to rise in June mainly due to extra oil from Saudi Arabia, Kuwait and the United Arab Emirates, a Reuters survey found on Thursday. -Reuters

Copper gains on relief over Greece, end of H1 LONDON: Copper hit its highest in two months on Thursday, supported by investors' greater appetite for risky assets after the safe passage of Greece's austerity plan, as well as positioning ahead of the end of the first half. Three-month copper on the London Metal Exchange closed at $9,430 -- its highest since endApril -- compared with a close of $9,320 a tonne on Wednesday. Copper's gains came against a backdrop of optimism in other markets that Greece is on its way to averting a default, cutting the risk sovereign debt crisis could spread across the euro-zone and derail the global economic recovery. The LME options market was also supportive of higher copper prices, noted Citi, with a large pool of open interest at the $9,500 strike. Prices tend to gravitate towards large areas of open interest. Options for the July contract expire next week. Copper's chart picture has also improved, with the metal breaking above its 100-day moving average around $9,362, a key buy signal watched by funds. Earlier a report showed business activity in the US Midwest grew more than expected this month, helped by a jump new orders. But other data showed the number of Americans filing claims for employment benefits barely fell last week, suggesting the labor market was struggling to regain momentum.

LME copper stocks fell for a sixth session, by 1,775 tonnes net, the latest data showed, and have now dropped around 12,000 tonnes from 13-month highs tipped earlier this month. Copper demand is expected to undergo a soft patch over the next few months, but most ana-

Shanghai copper higher The most-active September copper contract on the Shanghai Futures Exchange surged 2.6 per cent, closing the session at 69,860 yuan per tonne, catching up with previous gains in London. lysts expect consumption to ramp up towards the end of the third quarter. Longer term, prospects remain set for higher prices against a backdrop of growing infrastructure and consumer goods demand not just from top consumer China, but also other fast-growing economies like Brazil, said Barclays Capital. Boosted by copper, other metals also advanced, with lead ending at $2,684 a tonne -- a new high since mid-April -- compared with a $2,634 close. Zinc, which also hit its highest since mid-April, ended at $2,365 from $2,317 a tonne. Nickel, which hit a one-monthhigh, closed at $23,425 a tonne, up from $23,075. Aluminium ended flat at $2,532 a tonne and tin closed at $26,050 from $25,845 a tonne. -Reuters

Gold falls after Greek win on austerity LONDON: Gold fell on Thursday, although still heading for an 11th consecutive quarterly gain, as growing investor confidence that Greece would avoid a debt default dented perceived safe-haven assets. The euro maintained gains against the dollar after the Greek government passed a law to impose steep budget cuts to secure an emergency bailout and avoid the eurozone's first sovereign default. Gold has over the past three months been a major beneficiary of investor anxiety over Greece's potential to affect the rest of the euro-zone economy, the triple disaster in Japan and the outlook for global economic growth. The precious metal is set for a quarterly rise of 5.5 per cent, compared with declines of 1.4 per cent in the S&P 500, 4.8 per cent in crude oil and 2.8 per cent in emerging equities. Spot gold was down 0.5 per

cent at $1,503.81 an ounce by 1412 GMT after rising for two straight sessions. US gold was down 0.4 per cent at $1,504.30. Gold's safe-haven appeal is likely to be retained in the aftermath of the Greek debt crisis, but prices may be trapped in a range in the short run due to lack of speculative interest. "We need to see if fund buying

is coming back, which will largely depend on whether there will be more stimulus plans in the United States after the current round of quantitative easing ends," said Ronald Leung, a physical dealer at Lee Cheong Gold Dealers. So far in the second quarter of the year, investor buying of physical gold, as reflected by changes in holdings of the metal in exchange-traded funds, has

picked up relative to the first quarter of the year. Between March and June so far, some 2.101 million ounces of gold have flowed into the major ETFs, according to Reuters data, compared with an outflow of 2.271 million ounces in the first three months of the year. Silver was last down 0.8 per cent at $34.48 an ounce, on course for a 7 per cent quarterly loss, its first after nine straight quarterly gains and its worst since the third quarter of 2008, when the global financial crisis was approaching its most intense. Spot palladium outperformed the precious metals complex, rising 1.3 per cent to $755.97. Platinum was last down 0.4 per cent at $1,717.74 an ounce, having hit three-month lows this week and set for its first quarterly decline in a year, down 2.7 per cent in the second three month of 2011. -Reuters

ISLAMABAD: Pakistani farmers place bundles of wheat together after harvesting in a field of Gujar Khan some 55kms south-east of Islamabad. -Agencies

Sugar edges off 4-mth high, coffee firms LONDON: ICE raw sugar futures eased back from fourmonth highs on Thursday, supported by lower-than-expected Brazilian output and a weaker dollar, while frost in some Brazilian growing areas and tight robusta supplies underpinned coffee. Cocoa futures prices were little changed in thin volumes, with upside weighed by ample supplies from West Africa. ICE raw sugar futures jumped over 5 per cent to trade at a fresh four-month high, supported by lower-than-expected crush data in Brazil as dealers expressed concerns over cold weather, and later prices eased back slightly. Expectations of further support by Greece's parliament for austerity measures had also supported the softs complex, including sugar. ICE October raw sugar futures reversed gains and were down 0.48 cent or 1.8 per cent to 26.44 cents a lb at 1415 GMT. Front-month July raw sugar futures touched a fourmonth high of 30.88 cents a lb earlier on Thursday. Liffe August white sugar was down $9.50 or 1.2 per cent to $757.20 per tonne in thin volume of 2,751 lots. ICE arabica coffee futures rose, supported by the weaker dollar and reports that frost had reached at least two minor coffee regions in top grower Brazil's Parana state, although it was unlikely to put a major dent in next year's output. ICE September arabica coffee futures were up 3.85 cent or 1.5 per cent to $2.6455 per lb in light volume of 6,286 lots at 1417 GMT. Liffe September robusta coffee futures were up $14 or 0.6 per cent to $2,486 per tonne. ICE cocoa futures were little changed, supported by the softer dollar, but ample supplies from West Africa restricted upside price potential. ICE September cocoa was up $3 or 0.1 per cent to $3,122 per tonne in light volume of 5,052 lots at 1418 GMT. Liffe September cocoa was up 13 pounds or 0.7 per cent to 1,972 pounds a tonne in moderate volume of 9,016 lots. Reuters

Palm oil drops on rising stock concerns KUALA LUMPUR: Malaysian palm oil futures fell 1.2 per cent on Thursday as traders booked profit on concerns that lower-thanexpected exports data and high production could lead to record stocks. Although cargo surveyors reported Malaysia's palm oil exports in June rose above 1.4 million tonnes -- representing a six per cent growth from May -- output is likely to rise at much faster pace thanks to favourable weather. "If we compare exports for the first 25 days and the full month, the difference is small. It indicates exports has slowed down at the end of the month," said a trader in Kuala Lumpur. The benchmark September crude palm oil contract on

Bursa Malaysia Derivatives fell 37 ringgit to 3,072 ringgit ($1,012.024) a tonne. Overall traded volume stood at 22,711 lots of 25 tonnes each, lower than the usual 25,000 lots. Traders are turning their focus to the US Agriculture Department report due at 1230 GMT for further market cues. The report is expected to show tight supply due to bad weather and floods in key part of US grain and soybean planting regions, based on surveys of 88,000 growers. US soyoil for July delivery rose 0.3 per cent on Thursday, and the most active January 2012 soyoil contract on China's Dalian Commodity Exchange climbed 0.7 per cent during Asian trade hours. -Reuters

NY cotton ends down ahead of USDA report NEW YORK: Most US cotton futures closed lower on Wednesday, in another light-volume session, before release of a key government plantings report due early Thursday, brokers said. Benchmark December cotton on ICE Futures US fell 0.61 cent to finish at $1.2140 per lb, moving from $1.1981 to $1.2466. Total market volumes remained depressed, with 10,372 lots traded late in New York, about half of the 30-day norm, Thomson Reuters preliminary data showed. "It looks like another consolidation day before the acreage report," said Mike Stevens, an independent cotton analyst in Louisiana.

He said, the market continued to ignore mixed signals from outside markets, where another down day in cotton on China's Zhengzhou Commodity Exchange was countered by broader strength in the Reuters-Jefferies CRB index. Most market participants took a cautionary position, ahead of the annual planted acreage report due from the US Agriculture Department at 1230 GMT on Thursday. Cotton analysts believe US 2011 cotton sowings will reach around 13.26 million acres, the highest in five years, as farmers plant as many acres as they can to offset adverse growing conditions in much of the South. -Reuters

ROTTERDAM: The following were the Thursday's Rotterdam vegetable oil price's at 21:00 PST. SOYOIL: EU degummed euro tonne fob exmill Jul11 900.00-10.00, Aug11/Oct11 908.00-10.00, Nov11/Jan12 918.00-10.00. RAPEOIL: Dutch/EU euro tonne fob exmill Aug11/Oct11 950.00-8.00, Nov11/Jan12 945.00-10.00, Feb12/Apr12 945.00-8.00, May12/Jul12 945.00-8.00. SUNOIL: EU dlrs tonne extank six ports option Aug11 1450.00+30.00, Sep11 1430.00+10.00, Oct11/Dec11 1310.00-10.00, Jan12/Mar12 1325.00-10.00. LINOIL: Any origin dlrs tonne extank Rotterdam Jul11/Aug11 1610.00+10.00. CRUDE PALM OIL: Sumatra/Malaysia slrs option dlrs tonne cif R'dam Aug11/Sep11 1065.00-22.50, Oct11/Dec11 1065.00-17.50, Jan12/Mar12 1065.00-22.50. PALMOIL: RBD dlrs tonne cif Rotterdam Aug11/Sep11 1127.50, Oct11/Dec11 1115.00. PALMOIL: RBD dlrs tonne fob Malaysia Aug11/Sep11 1072.50-25.00, Oct11/Dec11 1060.00-25.00. PALM OLEIN: RBD dlrs tonne fob Malaysia Aug11/Sept11 1082.50-25.00, Oct11/Dec11 1070.00-25.00, Jan12/Mar12 1070.00-25.00, Apr12/Jun12 1070.00-27.50. PALM STEARIN: Dlrs tonne fob Malaysia Jul11 950.0035.00. PALM FATTY ACID DISTILLATE: Dlrs tonne fob Malaysia Jul11 700.00-10.00. COCONUT OIL: Phil/Indon dlrs tonne cif Rotterdam Jul11/Aug11 1650.00+30.00, Aug11/Sep11 1630.00+30.00, Sep11/Oct11 1620.00+40.00. CASTOROIL: Any origin dlrs tonne extank Rotterdam Jul11/Aug11 2425.00+0.00. Reuters

Tokyo rubber hits 2-wk high BANGKOK: Tokyo rubber futures rose to a two-week high on Thursday on the back of firm oil prices and hopes that Greece was closer to securing international aid, but rising supply capped gains, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for December delivery rose 7.2 yen to settle at 365.0 yen ($4,520) per kg. It rose to an intra-day high of 366.4 yen, the highest since June 22. The most-active rubber contract on Shanghai futures exchange for September delivery rose 805 yuan to finish at 31,865 yuan ($4,930.153) per tonne. "I think TOCOM prices should remain strong after prices finished at major support level of 365 yen," said a Tokyobased dealer. Brent held above $112 on Thursday, buoyed by tighter US oil stocks and a weaker dollar after an initial favourable vote on austerity measures by Greece's parliament. -Reuters

National Commodity Exchange Ltd Trading Summary Date

30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011 30-Jun-2011

Commodity

CRUDE10 CRUDE10 CRUDE10 CRUDE100 CRUDE100 CRUDE100 SILVER - 100oz SILVER - 100oz SILVER - 100oz SILVER - 500oz SILVER - 500oz SILVER - 500oz GOLD 01oz GOLD 01oz GOLD 01oz GOLD 100oz GOLD 100oz GOLD 100oz GOLD GOLD GOLD KILOGOLD KILOGOLD TOLAGOLD50 TOLAGOLD100 MINIGOLD MINIGOLD MINIGOLD MINIGOLD MINIGOLD TOLAGOLD TOLAGOLD TOLAGOLD TOLAGOLD TOLAGOLD SUGAR

Contract Date

Price Quotation

Open

High

Low

AU11 SE11 OC11 AU11 SE11 OC11 AU11 SE11 OC11 AU11 SE11 OC11 AU11 SE11 OC11 AU11 SE11 OC11 JY11 AU11 SE11 JY11 AU11 JY11 AU11 MON TUE WED THU FRI MON TUE WED THU FRI SE11

US$ Per Barrel US$ Per Barrel US$ Per Barrel US$ Per Barrel US$ Per Barrel US$ Per Barrel US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per Tola Per Tola Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per Tola Per Tola Per Tola Per Tola Per Tola Per Kg

93.86 94.89 94.89 93.85 94.40 96.00 34.36 34.29 34.29 34.19 34.38 34.29 1508.00 1508.10 1509.10 1509.20 1508.10 1510.50 41764.00 41902.00 41786.00 41737.00 41744.00 48681.00 48681.00 42873.00 42921.00 42937.00 42841.00 42857.00 49443.00 49393.00 49,380 49,439 49,500 64

95.80 96.21 95.63 95.80 96.00 96.00 35.11 35.16 34.81 35.14 35.15 34.81 1514.30 1514.50 1514.50 1514.20 1509.30 1514.50 41764.00 41902.00 41786.00 41737.00 41744.00 48681.00 48681.00 42873.00 42921.00 42937.00 42920.00 42857.00 49443.00 49393.00 49,425 49,440 49,540 64

92.83 93.45 94.89 92.83 94.38 94.89 34.08 34.10 34.29 34.15 34.12 34.29 1503.70 1503.60 1504.50 1504.00 1508.10 1505.20 41747.00 41755.00 41769.00 41720.00 41727.00 48661.00 48661.00 42839.00 42888.00 42904.00 42841.00 42823.00 49300.00 49355.00 49,350 49,301 49,281 64

94.56 95.11 95.63 94.56 95.11 95.63 34.80 34.81 34.81 34.80 34.81 34.81 1508.80 1509.30 1509.90 1508.80 1509.30 1509.30 41747.00 41755.00 41769.00 41720.00 41727.00 48661.00 48661.00 42839.00 42888.00 42904.00 42920.00 42823.00 49300.00 49355.00 49,374 49,392 49,281 64

Traded Volume in lots 1,620 207 440 14 1 95 349 13 104 3,460 2,186 543 74 21 1 1 22 38 27 -

Previous Settlement Price 93.84 94.38 94.89 93.84 94.38 94.89 34.28 34.29 34.29 34.28 34.29 34.29 1507.60 1508.10 1508.70 1507.60 1508.10 1508.70 41764.00 41772.00 41786.00 41737.00 41744.00 48681.00 48681.00 42873.00 42921.00 42937.00 42841.00 42857.00 49338.00 49393.00 49,411 49,301 49,320 64

Note: Traded Volume reflects the trades from 06:00 pm of previous day to 06:00 pm of current day

Current Open Interest Settlement in Lots Price 94.56 454 95.11 97 95.63 94.56 111 95.11 4 95.63 1 34.80 9 34.81 135 34.81 34.80 4 34.81 56 34.81 1508.80 3,510 1509.30 3,556 1509.90 257 1508.80 14 1509.30 1509.90 1 41747.00 4 41755.00 1 41769.00 41720.00 41727.00 48661.00 48661.00 42839.00 42888.00 42904.00 42920.00 42823.00 49300.00 10 49355.00 1 49,374 18 49,392 38 49,281 30 64 -

Singer Cliff Richard and television presenter Gloria Hunniford sit on Centre Court

Friday, July 1, 2011

ICC annual meeting; fierce opposition from Pak, BD and SA HONG KONG: International Circket Council (ICC) chief executive Haroon Lorgat poses after a news conference following its annual conference in Hong Kong. Reuters

Ganguly welcomes DRS implementation NEW DELHI: Sourav Ganguly has welcomed the ICC's decision to make the DRS mandatory for international Tests and ODIs, saying that there would only be more improvements ahead for all the parties involved. Ganguly told ESPNcricinfo that he understood India's reluctance to use the system because, "they had their reasons". Ganguly was a part of the Indian team which played the first series in which the DRS was used, against Sri Lanka in 2008. In the immediate aftermath of that series, the Indian team had expressed its lack of confidence in the technology to the BCCI. "At the time we were not convinced by the camera angles in use at the time," Ganguly said. "We were not convinced they were right. There was so much negativity around it that we didn't think it

worked. Hopefully there's much more consistency around it now." Ganguly, who left Sri Lanka after the Test series, said he did not know whether the Indian team had made its concerns about the camera angles known either to the match referee or the broadcasters. After the 2008 series, Ganguly got a first-hand view of the DRS during his television commentary stint at the 2011 World Cup. "The changes were huge, the technology was just far better this time," he said. Making the DRS mandatory for Tests and ODIs, he said, was a step forward for the game itself. "Would I have liked to have played under the DRS? It's hard to say now, but you accept technology and you get used to it - and that's probably what would have happened. In

the case of the DRS, players will get better using it as they go along." Ganguly said it was important that players' opinions on the technology that involves them directly are heard, and any changes and improvements also communicated to them. Ganguly was in Hong Kong on the invitation of the ICC to speak at its annual conference. Along with Shane Watson this morning, he addressed the Full Council's members' forum, the last event of its annual conference. On his first visit to Hong Kong, Ganguly held a clinic for young players at the Kowloon Cricket Club yesterday, where he was asked what he thought about cricket in Hong Kong. He glanced around at KCC's small ground with its short boundaries and said with a smile, "When I played, I loved hitting sixes." -Online

Chennai, Mumbai in same group for CLT20 NEW DELHI: Chennai Super Kings, the IPL champions, and Mumbai Indians will be part of the same group in the Champions League Twenty20 starting September this year. The tournament, which runs from September 23 to October 9, will be preceded by a qualifier phase from which three teams will progress to the main round to compete with seven others. The qualifiers will be held in Hyderabad between September 19 and 21, while the main tournament will be spread across three cities Chennai, Bangalore and Kolkata. The ten teams in the tournament proper will be divided into two groups of five, with Chennai, Mumbai, New South Wales Blues, Cape Cobras and one team from the qualifier phase comprising Group A. Group B includes Royal Challengers Bangalore, Warriors, South Australia Redbacks and two teams (ranked 1 and 3) from the qualifier round. Bangalore take

on Warriors in the tournament opener at the Chinnaswamy Stadium. The top two teams from each group advance to the semi-finals (in Bangalore and Chennai), and the winners play the final in Chennai. The teams in the qualifiers are divided into two groups of three. Kolkata Knight Riders, a team from England and Auckland, champions of the HRV Cup, form Group A. The Caribbean T20 champions Trinidad and Tobago, another team from England and one team from Sri Lanka make up Group B. The top teams in each pool followed by the next highest ranked team will progress to the Champions League. The new Future Tours Programme (FTP) includes an official window for the Champions League, enabling international stars to participate in the competition, jointly organised by the boards of India, South Africa and Australia. -Online

LONDON: Andy Murray of Britain is escorted after a training session on court 17 at the Wimbledon tennis championships in London. -Reuters

Harper withdraws from Dominica Test BARBADOS: Umpire Daryl Harper has withdrawn from the third Test between the West Indies and India in Dominica that begins from July 6. Harper will be replaced in what was to be his final outing as a member of the elite panel by Richard Kettleborough . He decided to step down "in the wake of some unfair criticism," according to ICC general manager Dave Richardson. Harper had been removed from the elite panel in May along with Asoka de Silva. His decisions in the recent Kingston Test had also attracted some criticism with MS Dhoni saying that "if the correct decisions were made, the game would have finished much earlier and I would have been in the hotel by now." Richardson, though, defended Harper's decision-making record. "The reality of the situation is that Daryl's statistics show his correct decision percentage in Tests involving India is 96 per cent, which is considerably higher than the international average for top-level umpires. "We have every faith in Daryl to finish the series and while we regret his decision we do respect it. The real shame is it deprives him of the opportunity to sign off as a Test match umpire in a manner befitting someone who has served the game so well since making his international debut back in 1994." Harper stood in 95 Tests, 174 ODIs and 10 T20Is, making his international ODI debut in 1994 at Perth and his Test debut in November 1998. Online

HONG KONG: International Cricket Council's decision to put ban on the appointments, on political basis has been postponed for next two years due to the opposition of Pakistan, Bangladesh and South Africa Cricket Boards during the Annual ICC meeting in Hong Kong. On the last day of Annual ICC's Conference, ICC unanimously supported a proposal to amend the ICC Articles of Association in order to limit the exercise of political influence in acquiring good posts. The above said decision has been suspended for the next two years due to the opposition built by three members out of eleven comprising Pakistan, Bangladesh and South Africa. ICC directed its all members to convey his message to their governments that national federations should be autonomous and free from interference from government in the administration of their affairs. In this regard, ICC sought for the recommendations from each member in an year, failing which would give full

authority to amend the ICC's constitution. After that ICC would once again give time span of one year to the boards to implement them in their boards whereas final decision would be taken in 2013 in this regard. Several members tried to curtail political appointments but failed to do so. ICC Chief Executive Haroon Lorgat said: "This is a significant step towards achieving best practice and, together with the independent governance review, I am excited by the commitment of the ICC to introduce best possible corporate governance." Format of ICC global events The Associate and Affiliate members, while welcoming the return to a 14team format for the ICC Cricket World Cup 2015, expressed some disappointment at the decision to maintain a 12-team ICC World Twenty20 in 2012 (Sri Lanka) and 2014 (Bangladesh). Haroon Lorgat said: "The ICC acknowledges their disappointment but the decision

to have 14 teams in the ICC Cricket World Cup and 12teams in the ICC World Twenty20 is a return to the current format for ICC events. We know that development is central to the ICC and our new Strategic Plan 2011-15 is designed to build a bigger, better global game." ICC President Sharad Pawar and Mr Lorgat thanked the members for their contribution to the great sport of cricket. Both the President and Chief Executive acknowledged the contributions of Shashank Manohar (BCCI), Jack Clarke (Cricket Australia) and Laurie Pieters (Namibia) who were attending their final ICC Annual Conference. On the week, Mr Pawar said: "Tough decisions often have to be made and this week has been no different. However, I am confident that we have made decisions which are in the best interests of cricket. There have been challenges, as always, but the great community of cricket showed that it was ready and capable of facing those challenges."

Tough Nut Contador Focusing On The Tour, Not Doping Case LES HERBIERS: The "ridiculous" possibility that he could soon be stripped of two of his Tour de France titles will not deter Alberto Contador from seeking a fourth victory in the race, the Spaniard said on Thursday. The 28-year-old, who tested positive for the banned anabolic agent clenbuterol in last year's Tour, was cleared by the Spanish federation earlier this year only for the International Cycling Union (UCI) and World Anti-Doping Agency (WADA) to appeal the decision before the Court of Arbitration for Sport. A ruling is expected in early August, but Contador, who also won the Giro d'Italia this season, is keeping his mind firmly focused on the Tour which starts on Saturday. "It would be totally ridiculous

that they take my victory away from me," Contador, who has said the positive test came after he ate contaminated meat, told a news conference in front of some 200 reporters. "We know the Tour de France is the race where you have the most pressure on your shoulders, just look at how many journalists are here. "Of course there's not pressure only on the road but also off, especially recently. I'm aware of that but what's important is to focus on the race, to keep my goal in mind." Speaking to Reuters by the SaxoBank Sungard team bus, his brother Fran said Contador would not be distracted from his goal. "He is cool. He is a tough nut to crack. He has the experience of this kind of situation," he said.

'RESPECT RULES' Contador is used to pressure off the road during the Tour. In 2007, he was repeatedly grilled by the media on an alleged link to the Operation Puerto doping scandal, but that did not prevent him from winning his first Tour. He strongly denied any involvement and was never charged. In 2009, Contador survived pressure from Lance Armstrong within his Astana team to bag a second Tour title. Last year, the slender Spaniard also faced media and crowd pressure after he took advantage of an Andy Schleck mechanical problem to claim the yellow jersey. Team boss Bjarne Riis implored reporters and fans alike to abide by the rules and let his rider do his job. Reuters

Sharapova, Azarenka close on noisy final LONDON: Maria Sharapova and Victoria Azarenka will ratchet up the decibel levels later on Thursday when two of the loudest women players on tour look to win their Wimbledon last-four encounters and set up a noisy final. Fourth seed Azarenka of Belarus, whose wailing during matches has upset the All England club, meets Czech Petra Kvitova in the first semi on Centre Court. Sharapova, the favourite as former champion despite being a seed lower than Azarenka, will grunt her way through against Sabine Lisicki knowing the German wildcard has already knocked out French Open champion Li Na and the fiery Marion Bartoli. -Reuters

LONDON: Petra Kvitova of the Czech Republic hits a return to Victoria Azarenka of Belarus during their semi-final match at the Wimbledon tennis championships. Reuters

Economy & Continuations

Friday, July 1, 2011

Greek lawmakers back reforms, clears way for aid ATHENS/BERLIN: The Greek parliament approved detailed austerity and privatisation bills on Thursday in a crucial vote to secure emergency funds and avert imminent bankruptcy, but longer-term dangers still lurk. Lawmakers voted 155-136 for the implementing laws after backing a deeply unpopular 28 billion fiveyear euro austerity plan on Wednesday, removing the last obstacle to the next slice of aid from the European Union and the International Monetary Fund. The euro and world stocks rose to three-week highs after the vote as investors expressed relief that the spectre of a sudden summer default had been avoided, despite fierce public opposition to deeper pay and spending cuts. The European Union's top two officials, Herman van Rompuy and Jose Manuel Barroso, hailed the vote as an "act of national responsibility" and said conditions were now in place to disburse the urgently needed next tranche of loans to Greece. Euro zone finance ministers will take the decision at a meeting on Sunday. The IMF is set to follow suit on July 5. That 12 billion euro loan will prevent Greece defaulting in mid-July or August and shift the focus to a second assistance package likely to be about the same size

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as last year's 110 billion euro bailout. Credit insurance markets are still pricing in a nearly 80 percent chance of Greece defaulting on its 340 billion euro debt mountain -- 150 percent of annual economic output within five years. Greek bond yields fell only slightly and there was a widespread sense that relief may be very short-lived. "The Greek situation has been kicked down the road for a couple of weeks and the immediate prospect of a default is off the agenda for now," said Michael Hewson of CMC Markets. "Getting this vote through is one thing, but all it is doing is delaying the inevitable ... Given what is going on on the streets of Athens, you have to question whether Greece can implement these measures." In Berlin, Finance Minister Wolfgang Schaeuble said he had reached agreement with German banks on private sector participation in a new assistance programme, based on a French plan for a voluntary debt rollover. German institutes were likely to contribute 3.2 billion euros through this scheme -- barely one-tenth of the sum sought from private bondholders. French banks and insurers have the biggest exposure among foreign holders of Greek debt. Greek banks have little choice but to roll over their own holdings.

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two countries. He said his daughter, Asifa Bhutto Zardari, has already said she would learn Chinese language. Zardari said, "China's civilization renaissance is a defining theme of the 21st century." He said with the Chinese economic rise, the gravity of global power has shifted from the Euro-Atlantic to the Asia-Pacific region. As a result, Asia is widely perceived as the continent of the 21th century, he added. President Zardari said, "Pakistan takes great pride in the economic transformation and achievements of China and hopes to learn from the Chinese experience and emulate China's development model with Beijing's help." - APP

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They out-rightly rejected the increase in gas tariff and said that it would be better if the gas companies control line losses, introduce efficiency in their system and control gas theft. They urged the Prime Minister Yousuf Raza Gilani to look into the matter and stop Ogra from making any further increase in gas tariff. The huge 20 per cent increase in gas prices planned by the government is likely to cast devastating repercussions on the national economy and oust the export-oriented industries from the international export market therefore it would be wiser on the part of the government if the plans for hike in gas tariff are shelved. Meanwhile, in a press release issued here on Thursday, the LCCI president Shahzad Ali Malik, senior vice president Sheikh Mohammad Arshad and vice president Sohail Azhar said that the increase in gas tariff would further jack up inflation, which according to official figures at present is around 15-16 per cent. "The textile is one of the most value-added and export-oriented sectors in Pakistan which accounts for more than 60 per cent of total exports of the country. Ninety five per cent of its inputs are locally produced and by making energy out of their reach, government is in fact curbing the use of local inputs", they added. They said that even the slightest raise in the cost of production, at this critical juncture, would, therefore, spell doom and oust Pakistani merchandise from the international export market which would deprive the exchequer of much-needed valuable foreign exchange to the tune of billions of dollars. The LCCI office bearers argued that the contention which has been portrayed by gas companies time and again that their prices are cheaper than several other countries is illogical because the prices quoted by them are not co-related with the cost of living index and hence do not depict the true picture. They urged the Prime Minister, Yousuf Raza Gillani, not to grant approval to any such proposal aimed at earning bad name for the government in the larger interests of the economy. - Online

Prime Minister George Papandreou's socialist government may find it hard to enforce tax increases and state asset sales against massive public resistance, while a violent fringe always present in Greek politics has burst to the fore. Vasso Papandreou, a former European Commissioner and member of the prime minister's PASOK party who is not related to him, told parliament she would vote for the laws as a patriotic duty although she feared the economy would deteriorate as a result. "Germany is preparing the ground for our official bankruptcy as soon as this can happen without cost to the German banks," she said, venting a feeling widely shared among Greeks, who say they are suffering to save European bankers. Rioters armed with stones and clubs fought several hours of running battles with police firing huge clouds of teargas in central Athens until the early hours of the morning, leaving gutted shop-fronts, shattered windows and a field of debris. "The problem for Papandreou is not in parliament," said Costas Panagopoulos, head of ALCO pollsters. "It is what is happening outside parliament: not in Syntagma Square, which is just a few hundred protesters, but with the whole of Greece's 11 million people." -Reuters

ECB flags July rate rise as inflation stays high BRUSSELS: The European Central Bank signalled it would raise interest rates again next week as data on Thursday showed inflation in June stabilised well above the bank's target. The European Union's statistics office said consumer prices in the 17 countries using the euro were 2.7 percent higher in June than a year earlier, the same as in May. Economists polled by Reuters had forecast a figure of 2.8 percent. The ECB aims to keep inflation below but close to 2 percent and raised its refinancing interest rate in April by 25 basis point to 1.25 percent to curb price growth -- its first hike in two years. "It is of paramount importance that the current rise in inflation does not give rise to broad-based inflationary pressure," ECB President JeanClaude Trichet told the European Parliament's economic and monetary affairs committee just before the figures were released. "The current monetary policy is accommodative and ... as I said we are in a state of strong vigilance," he said. The phrase "strong vigilance" has regularly been deployed to signal a rate hike at the next meeting, including before April's move. The ECB meets on interest rates next Thursday. The euro hit a fresh threeweek high against the dollar in response. It also remained supported as Greece moved a step closer to securing international aid after voting in favour of austerity measures. "There are signs that euro zone price pressures are starting to ease, although much will clearly depend on oil price developments," said Howard Archer, economist at IHS Global Insight. -Reuters

tion plan in case of floods. Secretary irrigation Sindh government informed the minister about the progress of the work to counter possible flood. He said that all 41 schemes pertaining to flood response will be completed till 30th July. He also briefed the participants about post-flood plans. Minister showed his concern on no breaching section in the whole province. Pre-flood preparedness by Khyber Pakhtunkhwa, though, was found to be satisfactory. Secretary irrigation department told that provincial government had completed 98 per cent work in the province. A flood emergency cell had been established in the province, removal of encroachments is in progress and emergency machinery is installed. Secretary irrigation Baluchistan province told that they had completed 80 per cent work and the work in most vulnerable areas had been completed. FFC chairman objected his statement and told that only 45 per cent work was completed in the province. Director General Pakistan Meteorological Department briefed the participants about radars and early warning system. He said that all seven radars were in working order to keep an eye on changing weather conditions. He also said that they were taking images from satellite and Chinese met office was cooperating with them. Representatives of district government Rawalpindi and disaster management office also briefed about their plans especially the situation of Nala Lai. They said they were all prepared to meet the unseen situation. - NNI

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Qaeda that have used Abbottabad as a transit point from Islamabad into Waziristan." - Online

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Khurram Jehangir Wattoo, Mir Ahmadan Khan Bugti, Syed Inayat Ali Shah, Ch Muhammad Barjees Tahir, Muhammad Hanif Abbasi, Begum Shahnaz Sheikh, Abdul Waseem, Syed Haider Ali Shah, Muhammad Usman Advocate, Sh Aftab Ahmad, Nazar Muhammad Gondal and Rana Afzaal Hussain. - APP

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surplus of Rs80 billion currently and a further Rs142 billion to be transferred to provinces on June 30.

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militants while one security personnel embraced martyrdom in a landmine explosion. Operation commander of Pakistan Army Aftab Ahmed informed the media that the operation had continued for three days against 40 militants who entered into Pakistan's territory. Pakistan Army was also helped by Civil Aviation during the operation. Aftab further told miscreants have spread 115 landmines in the area of 75 meters which were rendered ineffective by Continued from page 12 No #3 He said the intending pilgrims belonging to same districts will the army. - Online be accommodated in one flight and one building. While, the PIA Continued from page 5 No #9 will allot terminals in advance to save the time of the intending Lloyds' peer Royal Bank of Scotland advanced 4.6 per cent. pilgrims, he said. RBS was also boosted by newspaper reports that Mitsubishi The official said the ministry will also launch an awareness UFJ Financial Group is in advanced talks to buy an Australiacampaign to facilitate the intending pilgrims; Memorandum of based infrastructure advisory unit of RBS and its portfolio of pubUnderstanding (MoU) in this regard has already been inked with lic-private project-finance assets. Radio Pakistan and Pakistan Television (PTV). BG Group was the standout performer among integrated oils up He said 64 programmes have been recorded to guide the intend- 4.7 per cent, after the British gas producer doubled its best estiing pilgrims to perform their religious obligations. - APP mate of its oil and gas reserves in Brazil's Santos basin to six billion barrels. Continued from page 12 No #4 British oil services firm Petrofac, however, fell 2 per cent, shedthat the contractors were not ready to work on government rates. He also said that they have spent amount of Rs162 million to raise ding some of the gains it made in the run up to its latest update. the height of Akbar flood bund. Another Rs170 millions was spent Despite this being in-line, an analyst said he was surprised by the announcement of the impending retirement of Petrofac's chief in Bahawalpur area. Chairman Federal Flood Relief Commission showed his con- financial officer. CAUSE FOR CHEER cerns over possible flood in Shahdra region in Lahore. It was The Greek vote cleared the last obstacle to the next slice of aid observed that Shahdara area of Lahore could be vulnerable even if there is a flood of 0.1 cusec due to heavy encroachments. from the European Union and the International Monetary Fund, Minister directed the relevant authorities to chalk out an evacua- but strategists and traders cautioned that the country is merely

"kicking the can down the road". "We seem to be heading back towards the 6,000 barrier again but I'm still far from confident. Obviously it's another short-term successful solution to the crisis, but I've got no confidence that any measures actually voted in by the Greek parliament will actually be enacted by the Greek people," Martin Dobson, head of trading at Westhouse Securities, said. Strategists also warned that the FTSE 100's rally could have been inspired by end-of-quarter window dressing by fund managers to make their portfolios look better, and the fact that the Federal Reserve's bond-buying programme has drawn to an end could make further gains from equity markets more difficult. "Don't get suckered into thinking that the sell-off is over... I think we're on rather dangerous grounds," David Morrison, market strategist at GFT Global, said. "Near-term, the market is using the votes (from Greece) to take things higher, but we're also seeing window dressing... We start into the second quarter earnings season in the US next week and if things do disappoint, all the major indices could be hit very very hard... Expectations are pretty high still." One factor traders said could counter these potentially negative catalysts would be a resurgence of merger and acquisition activity. On the FTSE 250, the London Stock Exchange advanced 11 per cent on speculation it could become a takeover target for Middle East investors Borse Dubai and the Qatar Investment Authority, after its aborted $3.5 billion bid for Canada's TMX Group.-Reuters

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Britannia Industries jumped between 11.5 per cent and 28.6 per cent in the April-June quarter. Banks also logged a loss for the quarter, on worries higher interest rates and slowing growth may crimp demand for loans. Leading lenders State Bank, ICICI Bank and HDFC Bank shed 13 per cent and 1.9 per cent respectively. -Reuters

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panel maker won conditional loan guarantees from the US Department of Energy worth $4.5 billion for three of its largest projects.-Reuters

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output jumped 5.7 per cent in May, rising at a much faster pace than in the previous month, as companies made steady progress in restoring supply chains hit by the earthquake. Shares in Calsonic Kansei soared 11 per cent to 483 yen after the auto parts supplier forecast a 5.5 per cent rise in sales on Wednesday to 790 billion yen for the financial year ending March 2012, and a 35 per cent increase in net profit to 21 billion yen. Mitsubishi UFJ Financial Group rose 2.1 per cent to 390 yen after Deutsche Securities raised its rating to "buy" from "hold", citing likely profit growth in domestic banking. The brokerage said the bank's average return on equity was 6.4 per cent in the year that ended in March, but that it expects an increase to 7.3 per cent in the year ending in March 2013. Universe Co, which runs supermarkets in northeast Japan, jumped 21 per cent to 1,498 yen after the supermarket operator said it would merge through a share swap with Arcs Co, which controls chains in Hokkaido.-Reuters

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Replying to a question, he said, his party would not become party of any conspiracy to derail democracy in the country. We would play effective role of opposition, Rizvi added. When asked about alliance with Pakistan Muslim League (N), Jamiat Ulema-e-Islam (F) and other opposition parties, he said, together we can give tough time to government. The meeting between Quaid MQM Altaf Hussain and President Asif Ali Zardari was not scheduled, he said, adding that, MQM was trying best to improve its relations with political parties. About Dr Ishrat-ul-Ebad, he said that he was the citizen of Pakistan and will come Pakistan again. He said that all false cases against Ishrat had finished. - Agencies

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few investors who have made money as volumes declined by 40 per cent in FY11 to 9-year low and the gains were led by illiquid stocks like Nestle and Unilever. On the other hand, offshore investors remained active, as according to the figures of National Clearing Company of Pakistan Limited (NCCPL), there was a net foreign buying of $279 million during FY11 mainly due to Pakistan equity market trading at a discount of nearly 40 per cent compared with regional markets. The market capitalization increased to Rs 3.28 trillion from Rs 2.73 trillion, registering a surge of 20.4 per cent. According to Research Analyst of Topline Securities, without Nestle, the Index gained 21 per cent. For a common investor, market has increased by 21 per cent and not 28.5 per cent, he added. And that is also endorsed by 21 per cent gain posted by free float based KSE 30 Index. This should be classified as normal return which is in line with last 20-year average annual return of 20 per cent from Pakistan equities. However in light of the fact that average 1-year T-Bill generated 13.8 per cent in FY11, the return of 21 per cent from stocks is not very impressive considering the market and company risk along with issues related to tax filing, he said. KSE has witnessed 2 Initial Public Offerings (IPOs) worth Rs 1.1 billion in the fiscal year 201011 as compared to 8 equity offerings worth Rs4.33 billion during same period last year. That's why; the cumulative value of 2 IPOs offered in FY11 was 74.6 per cent lower than identical period last year. International steels was the only IPO which oversubscribed by receiving a subscription amount of Rs 402 million against offered amount of Rs 387 million. This stock is nearly 1 times oversubscribed. Pakgen Power was the worst IPO in terms of undersubscribed as company only manages to attract Rs 267 million against offered amount of Rs 707 million.

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The rate of return on Pensioner's Benefit Account and Behbood Savings Certificates - the schemes exclusively meant for pensioners, widows and senior citizens - shall continue to be 15.36 per cent. - APP

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Pakistan's forex reserves have grown steadily thanks to higher export proceeds, as well as record inflow of remittances, hitting an all-time high of $17.95 billion during the week that ended on March 26. Reserves have since eased slightly on debt repayments. Remittances sent by overseas Pakistanis crossed $10 billion for the first time, hitting $10.1 billion in the first 11 months of the 2010/11 fiscal year, an increase of 25.20 percent compared with the same period last year, according to SBP data. Foreign exchange reserves were boosted in January by more than $633 million when the United States provided funds for military and logistical support for Pakistan's campaign against a Taliban insurgency. In May 2010, Pakistan received $1.13 billion in the fifth tranche of an $11 billion International Monetary Fund (IMF) bailout programme. Pakistan and the IMF ended talks last month in Dubai to discuss budget targets for 2011/12 fiscal year.

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Natural Resources the ECC approved Furnace Oil Blending in Pakistan to acquire blending technology for socio-economic benefits, additional employment opportunities and increased investment in oil sector. It may be added here that this is for the first-time the blending of furnace oil technology will be introduced in country. Pakistan has already sufficient infrastructure to blend high viscous. The ECC directed the Ministry of Petroleum and Natural Resources to ensure proper monitoring system at the time of blending and SOPs be drawn. The monitoring system would function under the supervision of OGRA and Hydro Carbon Development Institute of Pakistan and the IPPs would be its consumers. After much deliberations and discussions on the Uniform Natural Gas Load Management Policy proposed by the Ministry of Petroleum and Natural Resources to the ECC, it was decided that gas supply to two IPPs would continue for the next five months and the other two IPPs would be asked to resort to other fuels on which the price differential would be given to them. The approved summary on natural gas load management policy has proposed curtailment of CNG supply to CNG stations for three and two days for the Provinces of Punjab and Sindh respectively. The gas saved by the proposed curtailment would be used for power generation in Sindh and to facilitate fertilizer, industrial and power sector in Punjab on equitable basis so that consistent supply of power is ensured. Re-lending of Keyal Khawar Hydro Power Project was also been approved by the ECC. At the request of Ministry of Petroleum and Natural Resources, the committee deferred the proposal for the revision in gas sale prices for the next two or three days so that the matter may be discussed at the Cabinet level or with the Prime Minister. The committee, however, accepted the economic rationale for the revision of gas sale prices and for the removal of distortion in the prices. Tax exemption for WAPDA Sukuk Company has already been approved by the Ministry of Finance which has granted exemption for the payment of income tax. The ECC also approved modification of tariffs by NEPRA allowing operation of gas based IPPs on back up fuel (HSD) with full cost recovery, whatever period gas is not available to them. The summary for this project was earlier submitted to the Prime Minister who desired that the same may be discussed at the ECC for decision. KRL has already shown its acceptance to undertake this project by lowest bidding and fast track its completion within the stipulated time. Agencies

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approved closure of CNG stations for two and three days a week in Sindh and Punjab respectively. In the meeting Rs2 billion was approved for Ramadan package. It is pertinent to mention here that a day before, federal minister for petroleum and natural resources Dr Asim Hussain had said that government was taking solid steps to solve gas crisis, adding that gas load management plan was being chalked out. Dr Asim further said there was proposal to approve the increase in gas tariff by 10 to 15 per cent for domestic consumers, 15-20 for commercial and 100 percent for the fertiliser industry.-Agencies

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According to sources, it was expected that total 6.3 percent reduction will be made in the petroleum products prices.

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LONDON: President Asif Ali Zardari exchanging views with UK Cabinet Minister Sayeeda Warsi.-Online

Govt's steps made Fed firm, says PM ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani has said that the government has taken a number of key steps such as the restoration of original character of Constitution through the 18th and 19th Amendments, 7th National Finance Commission Award, political ownership to war on terror, Aagaz-e-Haqooq-eBaluchistan initiative, the strengthening of Parliament and other state institutions, prowomen and pro-minorities' reforms and Gilgit-Baltistan Empowerment & SelfGovernance Order 2009. He observed that these initia-

tives of democratic government have made the federation strong. The Prime Minister was talking to MNA, Begum Nasim Akhtar Chaudhry who called on him at PM House here on Thursday. The Prime Minister said that the federal government would continue providing assistance to all the provincial governments in the implementation of devolution of functions as per the 18th Amendment. He said that all the existing development projects would be completed and a comprehensive strategy has been prepared

to target the projects which are near completion first. He said that funds have been allocated in a judicious manner keeping in view the requirement of the area and irrespective of the party affiliation among the public representatives. He urged the public representatives to enhance the level of monitoring over the ongoing projects for their better management. Begum Nasim Akhtar Chaudhry informed the Prime Minister about the status of the ongoing development projects in her area. - NNI

US calls terror outfits real cancer in Pakistan WASHINGTON: Militant organisations are "real cancer" within Pakistan and the nation has a challenge to eradicate terror forces within its borders, a top White House official said. "My view is that there is a real cancer within Pakistan, from the standpoint of militant organisations," John Brennan, assistant to the US President for Homeland Security and Counterterrorism, said in his speech at the Paul Nitze School of Advanced International Studies. "Whether you're talking about al Qaeda, whether you're talking about the Pakistani Taliban or TTP, Haqqani group, Lashkar-e-Taiba, others, there is I think a general recognition in the United States as well as throughout the world, that Pakistan has a real challenge ahead of it to uproot and eradicate the forces of militancy within Pakistan," he said in response to a question. The official said, "The Pakistani government and the Pakistani people have to be

very honest with the challenge that they face domestically, that it is an area that has served as a training ground, as a launching pad to carry out attacks." He said people of Pakistan are also victims of terror acts, which they witness on a "daily basis". "Not just against other countries, against the United States - against Pakistanis. You know, men, women and children on a daily basis in Pakistan are being horrifically murdered by these, you know, attacks, suicide attacks. They're anything but suicide; they're homicide attacks. They kill by the scores." Brennan hoped Pakistan government and other concerned institutions are going to become even more aggressive in taking the battle to the forces of militancy and terrorism. "So this is something that I don't know how many people in al Qaeda, in the senior leadership ranks, knew exactly where Osama was." "But he is someone who

knew that if he, you know, let it be known of his whereabouts, you know, his days were going to be numbered. I think he was -- he became, then, confident and relaxed in Abbottabad." "I think he was totally taken by surprise when our brave SEALs confronted him that night," Brennan said. "So again, I have not seen anything (evidence of top Pak leadership knowing about it). This is one of the big questions that we had right away and we raised it at the senior-most levels of the Pakistani government. They tried to figure out the same thing: you know, what gives. But, you know, Pakistan is a large country," the official said. He said, "It's one of their lessons learned right now in terms of what they need to do to make sure that they're aware of what's happening in places like Abbottabad. Doesn't mean that all these miscreants are hiding in a cave somewhere in Waziristan. There have been individuals in the past from al See # 5 Page 11

Pak-Iran project's gas costly for households ISLAMABAD: Secretary Ministry of Petroleum and Natural Resources Muhammad Ejaz Chaudhry said on Thursday domestic consumers would not be able to afford Pak-Iran project's gas. Briefing National Assembly Standing Committee on Petroleum and Natural Resources that met here with Talib Hassan Nakai in the chair, the secretary said the gas from Pakistan-Iran gas pipelines cost around Rs8.50 per unit which could be used for power generations, industries and fertilizers. He said that government had two options to meet the country's growing energy needseither to import or explore new hydrocarbon resources to ensure availability of electricity and gas in the country. He said that Pak-Iran project would start supply from 2014 and adding if it got late then gas

crisis would multiply. About the LNG project the secretary said progress was being made and 17 international bidders had shown interest in supply of energy and gas to Pakistan. The committee was informed that presently the country was facing gas shortfall of 2.5 billion cubic feet against demand of 6 billion cubic feet. He said if the situation continues to persist the gas load shedding could be extended from two days. The secretary said the SSGC and SNGPL had recovered Rs4 billion during the last 48 days and disconnected around 370 illegal connections in two months, mainly in Punjab. The secretary informed that 90 per cent of gas development programmes were being completed under the PM schemes while 10 per cent belonged to the SSGC and SNGPL.

The committee took serious view about the malpractices of provision of 500 CNG connections despite ban imposed in 2007. The MD OGDCL Asif Sindhu said Rs600 million had been allocated for the development schemes in next financial year and Rs310 million was spent on development schemes in Baluchistan last year. The committee also showed concern over constant increase in prices of petroleum products. The committee recommended that report should be presented about illegal grant of CNG connections. The body also recommended that ban on MNA's gas development schemes should be lifted in order to provide the basic facility to their respective areas. The committee was attended by Nawab Ali Wassan, Mian Abdul Haq alias Mian Mitha, See # 6 Page 11

Pak protests as Afghan army fires mortars ISLAMABAD: Afghan National Army (ANA) fired 3 mortar rounds which fell 900 meters inside Pakistan territory at Angoor Adda in sector South Waziristan, according to sources. No loss has been reported however Pakistan has lodged protest for this unprovoked firing. On 29th June ANA also fired mortar rounds which fell at Angoor Adda. The ANA troops fired mortar shells in the Angoor Adda area without any provocation. ANA troops also targeted a market in Angoor Adda, destroying shops and causing civilian casualties. The attack was retaliated by Pakistani troops immediately. The border clash is ominous as it came at a time when Pakistan-US relations are at their lowest ebb. Earlier this month Pakistan and Afghanistan had agreed to upgrade a joint commission to expedite the reconciliation process in an effort to restore stability to the region. - Online

IDB asked to help hold budget deficit Staff Reporter ISLAMABAD: The government has decided to pursue other donors to contain the budget deficit in view of delay in release of $30 million dues under the Coalition Support Fund coupled with suspension of IMF standby arrangement since last calendar year. According to reports, federal government has requested Islamic Development Bank for the immediate release of $160 million to bridge the everwidening fiscal deficit. Earlier, spokesman of the finance ministry Rana Assad Amin also confirmed that government has approached the IDB to make up for the shortfall in foreign inflows resulting from the delay in CSF dues. Earlier IDB had offered a credit line of $400 million on commercial terms but the government refused. However, top officials in finance ministry were not sanguine for release of IDB funds in outgoing fiscal year which passed yesterday. Experts believe owing to delay of $300 million CSF funds the budget deficit would more aggravate to exceed far ahead of set targets of 5.4 per cent. According to officials of finance ministry the funds demanded from IDB are half of the CSF amount overdue. The inflows from IDB would be used for financing unlike the CSF dues which were receipts for the expenses incurred during the latest previous fiscal year. The total expenditures amounted to Rs2274 billion during the out going fiscal year whereas the federal revenue receipts amounted to Rs1238 billion while the provinces had See # 7 Page 11

BEIJING: President Asif Ali Zardari highlighting the importance of Pak-China relations said Pakistan will continue to encourage exchanges between its political parties and the Communist Party of China (CPC) to further enhance and strengthen these friendly ties. In a written interview with Xinhua, on the occasion of 90th anniversary of the foundation of the CPC on July 1, President Zardari said, this year has been designated as the "Year of China-Pakistan Friendship." A series of activities are being held in the political, economic, trade, military, cultural, sporting and education fields to celebrate the 60th anniversary of the establishment of ChinaPakistan diplomatic relations. President Zardari said exchanges of delegations of political parties are also an important component of the celebrations of the friendship year. He congratulated CPC on its 90th anniversary of the foundation of the party and appreciated the role of the CPC in the transformation of China. President Zardari who is also

Co-Chairman Pakistan Peoples Party said, "The relationship between the CPC and PPP is old and strong; the sagacious leaders of our two countries decades ago laid the foundation for the solid trust that exists between Pakistan and China." He paid tributes to the wisdom of the "architects" of the Pakistan-China friendship and especially mentioned Shaheed Zulfiqar Ali Bhutto and Chinese leaders Mao Zedong and Zhou Enlai. President Zardari said the close ties between the CPC and PPP played an important role in cementing ties between the two countries. He described PakChina friendship as model relationship. He said, "No other relationship can match this time-tested partnership." President Zardari said the two countries greatly value their cherished friendship and have complete trust in all bilateral, regional and global issues. The close friendly and cooperative relations between Pakistan and China are also a factor of peace and stability for the region and beyond, he said.

Business fraternity in one voice

Govt urged not to up gas prices LAHORE: Pakistan Industrial and Traders Associations Front (PIAF) has urged the government to withdraw plans aimed at a massive increase in gas prices as it would be disastrous for major export earning sectors including textiles. According to a handout issued here on Thursday, the PIAF chairman Sohail Lashari, senior vice chairman Nadir Kamal Osman, vice chairman Junaid Iqbal Sheikh and chairman Lahore Township Industries Association (LTIA) Haroon Shafiq Chaudhry said that government has no justification for making tariff hike recommendation in the wake of irritating energy crisis, bad law and order situation, high electricity rates and markup in double digits.

The industrial productions are already at its lowest ebb and any further increase in gas or electricity prices is bound to cause irreparable loss to the over all economy therefore it would be wiser to keep the decision pending, they added. They said that if the input cost for doing business in Pakistan would remain higher than that of neighboring countries, it would convince the foreign investors not to put their money in any new venture in Pakistan. They said that acute power shortage has already pushed the industrial sector to the wall and a large number of industrial workers had lost their jobs, the government should avoid any anti-industries step. See # 2 Page 11

Hajj applicants reach 86000

Visa process for Hajj to begin from 15th ISLAMABAD: The process to dispatch passports of the intending pilgrims to Saudi embassy for stamping Hajj visa would be started from July 15. An official of Ministry of Religious Affairs told APP: "banks have been asked to submit passports to the ministry as it has been decided to dispatch 7,000 passports daily to Saudi embassy for stamping visa." He said the whole process will be completed within 10 to 12 days. The process of submitting applications was started on May 15 and within the ten days; about 76,000 applications had

been received on May 26 by various banks. While the number of intending pilgrims had reached to 86,000 on May 29. Later on all the 86,000 Hajj applicants have been declared as eligible for performing the Hajj 2011. He said the process to hire buildings for intending pilgrims would be completed soon. Pakistan International Airlines (PIA) is set to issue Hajj flight schedule on July 1 and the relevant information would be dispatched to the successful pilgrims by August 15. See # 3 Page 11

Briefings by provinces

Pre-flood arrangements widely reviewed ISLAMABAD: A meeting was conducted here on Thursday in Ministry of Water and Power to review pre-flood preparations, which was chaired by Naveed Qamar. Heads of concerned departments said that they were ready to tackle the possible calamity. Chief engineer floods Punjab irrigation department said that almost 85 per cent work was complete in the province and rest 15 per cent would be com-

pleted till 15th of July. Major work was in progress along Indus River. Warnings have already been issued on 15th of June to meet the possible catastrophe. However, minister showed his displeasure over slow progress of the province in taking pre-flood measures. In reply he said that slow pace of the work was due to high cost of construction and See # 4 Page 11

Zardari said, "I have confident that through our joint work, the torch of the PakistanChina friendship will be carried forward from generation to generation, century to century and millennium to millennium." When asked about new growth points for bilateral relations, Zardari said the goodwill between China and Pakistan must act as a precursor for adding greater "commercial" and "cultural" content to the economic and public diplomacy between the two countries. He said consolidating the economic content of ChinaPakistan relationship is a major priority for Pakistan in the future. "We plan to make use of the vast potential for bilateral economic cooperation," he said. He pointed out that there are about 120 Chinese enterprises already in Pakistan, and Pakistan welcomes Chinese investments in domestic mega projects. The President said there is still need to promote people-topeople contacts between the See # 1 Page 11

Sayeeda calls on President ISLAMABAD: Chairperson Conservative Party and UK cabinet minister Baroness Sayeeda Warsi called on President Asif Ali Zardari on Thursday in London. She was accompanied by British High Commissioner to Pakistan Sir Adam Thomson and Steven Wignall. Chairman Pakistan People's Party Bilawal Bhutto Zardari was also present during the meeting. Pak-UK bilateral relations, mutual cooperation, war against terror, the role of Pakorigin citizens in UK was discussed during the meeting. Others who attended the meeting included secretary Salman Faruqui, Pakistan's High Commissioner to UK Wajid Sahamsul Hassan, spokesperson Farhatullah Babar and other senior officials. - NNI

Nepra holds raise in power tariff ISLAMABAD: National Power Regulatory Authority (NEPRA) has reserved the decision on the application from eight distribution companies to increase 61 paisa per unit on account of fuel adjustment charges. Except KESC, eight power distribution companies have requested Nepra to allow for increase in tariff of electricity by Rs0.61 per unit under monthly fuel adjustment charges, which would be implemented from the month of May. The hearing was held on these applications on Thursday after which the decision was kept reserved by the Nepra authorities. - Online

Forces kill 40 militants in operation MOHMAND AGENCY: The security forces have killed forty militants while several other sustained serious injuries during the three-day operation launched here in Mohmand Agency. According to media reports on Thursday, the security forces launched operation against the militants in Shongrai area of Mohmand Agency and killed forty See # 8 Page 11

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