International Karachi, Wednesday, August 10, 2011, Ramazan-ul-Mubarak 9, Vol, 5 Issue, 9 Price Rs 12 Pages 12
PPP equally responsible for Karachi unrest: Gabol
Pak for cordial relations with India: Hina
See on Page 12
Pak, US need each other: envoy
See on Page 12
4.6 million tonne rice export target proposed
See on Page 12
See on Page 12 Economic Indicators $18.31bn 13.77% $24.83bn $40.41bn $(15.59)bn $542mn $11.20bn $1.92bn Rs 1598bn $59.54bn Rs 5957bn $758mn -2.28% 4.20% $1,051 176.87mn
Forex Reserves (30-July-11) Inflation CPI% (Jul 11) Exports (Jul 10-Jun 11) Imports (Jul 10-Jun 11) Trade Balance (Jul 10-Jun 11) Current A/C (Jul 10-Jun 11) Remittances (Jul 10-Jun 11) Foreign Invest (Jul 10-Jun 11) Revenue (Jul 10-Jun 11) Foreign Debt (Mar 11) Domestic Debt (Jun 11) Repatriated Profit (Jul 10 - Jun 11) LSM Growth (May 11)
GDP Growth FY12E Per Capita Income FY10 Population
Portfolio Investment SCRA(U.S $ in million)
Yearly(Jul, 2011 up to 08-Aug-2011) Monthly(Aug, 2011 up to 08-Aug-2011) Daily (8-Aug-2011) Total Portfolio Invest (16-Jul-2011)
-52.38 -5.89 0.29 2768
NCCPL (U.S $ in million)
FIPI (09-Aug-2011) Local Companies (09-Aug-2011) Banks / DFI (09-Aug-2011) Mutual Funds (09-Aug-2011) NBFC (09-Aug-2011) Local Investors (09-Aug-2011) Other Organization (09-Aug-2011)
-7.56 -1.47 3.92 3.19 -0.57 2.27 0.21
Global Indices Index Close KSE 100 11,034.92 Nikkei 225 8,944.48 Hang Seng 19,330.70 Sensex 30 16,857.91 ADX 2,577.76 SSE COMP. 2,526.07 FTSE 100 5,125.33 *Dow Jones 11,042.20
Change 369.25 153.08 1,159.80 132.27 35.04 0.75 56.38 232.35
GDR update $.Price PKR/Shares Symbols 112.20 MCB (1 GDR= 2 Shares) 2.60 122.99 OGDC (1 GDR= 10 Shares) 14.25 43.16 UBL (1 GDR= 4 Shares) 2.00 36.68 LUCK (1 GDR= 4 Shares) 1.70 37.77 HUBC (1 GDR= 25 Shares) 10.94
ADB promises support to energy reforms ISLAMABAD: The Asian Development Bank (ADB) has assured to fully support power sector reforms, energy efficiency and improvement and energy conservation programme in Pakistan. The assurance was given by ADB director energy Rune Stroem while talking to Federal Minister for Water and Power Syed Naveed Qamar here on Tuesday. The ADB director said that the Bank was already providing financial assistance for power distribution enhancement projects and would continue its support for the project in order to improve the energy efficiency. Transmission and distribution system and energy loss reduction programme is also being funded by ADB for all the power distribution companies (Discos). The Bank is also taking up tube-well efficiency plan. The Bank will provide financial
Money Market Update T-Bills (3 Mths) 27-Jul-2011 T-Bills (6 Mths) 27-Jul-2011 T-Bills (12 Mths) 27-Jul-2011 Discount Rate 30-Jul-2011 Kibor (1 Mth) 09-Aug-2011 Kibor (3 Mths) 09-Aug-2011 Kibor (6 Mths) 09-Aug-2011 Kibor (9 Mths) 09-Aug-2011 09-Aug-2011 Kibor (1 Yr) 09-Aug-2011 P.I.B (3 Yrs) 09-Aug-2011 P.I.B (5 Yrs) 09-Aug-2011 P.I.B (10 Yrs) 09-Aug-2011 P.I.B (15 Yrs) 09-Aug-2011 P.I.B (20 Yrs) 09-Aug-2011 P.I.B (30 Yrs)
13.53% 13.78% 13.92% 13.50% 13.28% 13.26% 13.36% 13.66% 13.72% 13.45% 13.49% 13.53% 13.83% 13.96% 14.05%
Commodities *Crude Oil (brent)$/bbl *Crude Oil (WTI)$/bbl *Cotton $/lb *Gold $/ozs *Silver $/ozs Malaysian Palm $ GOLD (NCEL) PKR KHI Cotton 40Kg PKR
104.92 82.75 99.50 1,732.90 37.77 994 47,753 6,645
Open Mkt Currency Rates Symbols
Buy (Rs)
Sell (Rs)
Australian $ 87.80 89.50 Canadian $ 86.40 88.50 Danish Krone 16.35 16.65 Euro 122.40 124.00 Hong Kong $ 10.95 11.10 Japanese Yen 1.104 1.132 Saudi Riyal 22.93 23.10 Singapore $ 70.30 71.30 Swedish Korona 13.40 13.60 Swiss Franc 100.10 101.10 U.A.E Dirham 23.43 23.60 UK Pound 140.30 142.00 US $ 86.10 86.45 Inter-Bank Currency Rates Symbols
Buying
Selling
TT Clean
TT & OD
Australian $ 86.37 86.57 Canadian $ 86.40 86.60 Danish Krone 16.48 16.52 Euro 122.78 123.07 Hong Kong $ 11.04 11.07 Japanese Yen 1.117 1.119 Saudi Riyal 23.00 23.05 Singapore $ 70.57 70.73 Swedish Korona 13.29 13.32 Swiss Franc 115.04 115.31 U.A.E Dirham 23.48 23.54 UK Pound 140.63 140.96 US $ 86.31 86.50 Weather Forecast Cities
Islamabad Karachi Lahore Faisalabad Quetta Rawalpindi
Max-Temp Min-Temp
35°C 35°C 33°C 34°C 37°C 36°C
20°C 29°C 29°C 30°C 15°C 20°C
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assistance for free distribution of 30 million energy saver bulbs (CFLs) in the country. He briefed the current status of the project and stated that the biding process for 20 million energy saver has been almost completed. These energy savers will help reduce peak hours demand over 1000 MW. He said that the Bank will fully support the energy conservation initiatives of the government. The Minister for Water and Power appreciated the role of ADB for improvement in energy sector and said that the support of the Bank for energy efficiency programme will help save the energy and reduction in the transmission and distribution losses. He asked the ADB to help in the tube-well efficiency programme by replacing existing motor pumps with new improved ones. The Minister also asked for
providing guarantee facility for wind power projects. He also briefed the delegation regarding new energy sector improvement initiatives like operation and maintenance contract of generation companies (Gencos) through private sector and conversion of existing IPPs to cheaper fuels. The ADB director also discussed current status of power sector reforms, energy efficiency programmes, central power purchasing agency, independence of Discos, and proposed amendments in the Nepra act. The Minister also assured that all the efforts will be made to timely complete the existing projects being funded by ADB. The meeting was also attended by secretary Imtiaz Kazi, Managing Director National Transmission & Despatch Company (NTDC) and chief executive officer Alternative Energy Development Board (AEDB). - APP
Global crisis alert
Govt mulls 10pc growth target for exports TFD Report KARACHI: Despite achieving 28 per cent growth in exports for the year 2010-11 (FY11), government is considering to set merely 10 per cent growth target for exports for the current fiscal year. According to sources in finance ministry, owing to aggravating global financial crisis and resultant slowdown in world markets, this year government is in view of setting growth targets for exports quite lower
than the previous fiscal year. The government is going to set the export target at $27.5 billion during July to June (2011-2012) with the increase of only 10 per cent. Sources further told that as the major part of the country's exports are based on textile sector, which contributed $14 billion out of the $25 billion exports achieved this year, reduction in price of cotton related goods would certainly affect over all export growth. Secretary commerce
informed the stakeholders in a meeting on Tuesday that the commerce ministry was taking steps for seeking approval of 72 items to be exported to European Union (EU) and getting Generalized System of Preference (GSP) Plus status for Pakistan. Pakistan achieved an exports target of $25.290 billion during the last fiscal year despite tough domestic law and order situation, short foreign investment and bad international financial position.
Indians may be allowed to invest in Pakistan TFD Report KARACHI: Finance ministries of both the nuclear neighbours are seriously considering to devise means and ways to facilitate joint ventures in both the countries as a first step to boost foreign direct investment in Pakistan. According to sources of finance ministry, there were several reservations of Islamabad to give the status of most favoured nation (MFN) to India. However, owing to dwindling FDI in various sectors
some high officials of finance ministry are pleading the case to give India status of MFN. Sources said that a summary is being prepared in Ministry of Commerce to allow Indian investors to pour their money in Pakistani projects on case to case basis in first phase. After success of this experiment, fullfledged status of MFN would be granted to immediate neighbor after fulfillment of necessary formalities. The concerned authorities, trade bodies and associations, have also suggested the min-
istry that the government should consciously relax the conditions on Indian investment. In various proposals forwarded to the ministry by these organizations, it was also cleared that there would be no harm to the indigenous industry if an industry was established by both Pakistani and Indian companies, having 50 per cent share by each party. The suggestions, sources claimed, were made on the eve of the 5th round of talks on commercial and See # 8 Page 11
LONDON: Smoke billows from a Sony Centre warehouse in Enfield, north London in this still image taken from footage.-Reuters (See detail news on page 11)
Petroleum levy on CNG in offing ISLAMABAD: The Ministry of Petroleum and Natural Resources has decided to impose a petroleum levy on compressed natural gas (CNG) of Rs5 per kilogram. This latest decision comes a week after the government increased the price of CNG by Rs6 per kilogram. The Ministry says that the government will earn additional revenue of Rs12 billion through this levy. Officials say the decision has been made to reduce the profit of CNG owners. They say that the CNG sector could not be promoted any further due to the country's depleting gas reservoirs. On the other hand, the CNG Association has rejected the proposed petroleum levy on CNG and called a meeting on August 11 to chalk out its next strategy. - NNI
Fed vows low rates for two years WASHINGTON: The Federal Reserve said on Tuesday it will keep interest rates near zero for at least another two years in a move that disappointed markets hoping for more direct action to aid the flagging economy. In a divided decision, the central bank also signaled that it was prepared to do more if necessary, noting that it still has tools available for spurring growth and will use them if necessary. The Fed said US economic growth was proving See # 7 Page 11
Ramazan Timing Ramazan 9, 1432 AH Wednesday, August 10 ---------------------------Iftar today
7:13pm
Sehar tomorrow
4:40am
For Fiqah-e-Jafaria Iftar today Sehar tomorrow
7:25pm 4:36am
Ongoing loan scheme at standstill
Govt eyes new IMF loan TFD Report ISLAMABAD: The standby programme of International Monetary Fund (IMF) for Pakistan has been in state of abeyance for the last three months. Strangely enough, instead of fulfilling the conditions of multilateral donor to release the next tranche of ongoing loan programme, government has decided to get a new loan to stave off upcoming fiscal crunch owing to unbridled government borrowings. According to reports, the new date for negotiation with IMF to get release the next overdue tranche of current loan programme has not yet been finalised. It was earlier scheduled to be held in midJuly. The key conditions attached with the release of tranche of ongoing loan pro-
gramme are decrease in fiscal deficit and end of electricity subsidy. Last year fiscal deficit was Rs1 trillion which was a worst failure of government as viewed by IMF while another failure was inability to end Rs295 billion subsidy which is being given to public on electricity. So far two installments of total $3.40 billion have been in pending since July 2011. Experts said that discontinuation of current IMF loan programme due to failure in meeting the conditions may affect sovereign rating of the country. Sources further said that government is considering to obtain a new loan from IMF which may be to the tune of $5 to $7 billion. The new programme may carry more strict conditions.
SECP to inspect brokerage houses TFD Report ISLAMABAD: In order to ensure a fair and transparent capital market, the Securities and Exchange Commission of Pakistan (SECP) has developed an inspection policy to ensure regulatory compliance by the participants of the securities market. Additionally, an inspection manual and standard operating procedures for the implementation of the policy have also been developed. All the statutory requirements along with best practices have been included in these documents. The SECP aims at strengthening market oversight and enforcement through a blend of off-site reporting and on-site inspection. The off-site element comprises of periodic reporting by the regulated entities, including the three stock exchanges, which will then be assessed and analyzed to identify potential risk areas and to
determine the status of compliance. On-site inspections will focus on policies, procedures and internal control systems, established by the regulated entities, to assure compliance and to assess their financial health. The SECP intends to conduct inspection of members of the stock exchanges on a regular basis. A strong inspection programme is in the best interests of the regulated community as investor confidence is predicated on their trust in the market professionals who handle their investments, as well as in the regulators who supervise the market and related activities. The inspection programme is aimed at promoting a culture of compliance and regulatory practices that would not only be beneficial to the market intermediaries and investors but would also facilitate overall growth and development of an efficient capital market.
EoI deadline for IP gas project extended ISLAMABAD: Pakistan has extended the last date for submission of expression of interest (EoI) for its $1.2 billion Iran-Pakistan gas pipeline project from August 22 till September 10, 2011. Inter State Gas Systems (ISGS) has invited tenders for 800 kilometers of pipeline of 42 inch diameter. According to an advertisement the ISGS has also
waived off the non-refundable processing fee of $7,000. Pakistan is in the grip of a serious energy crisis that is affecting all sectors of the economy and the various segments of the society. Earlier Minister for Petroleum and Natural Resources Dr Asim Hussain had said that IranPakistan gas pipeline will be completed by 2014.
He said that Iran had completed its work on laying the pipeline and Pakistan would resume work on the project shortly. Recognizing that availability and affordability of energy is essential for sustainable economic development, the government has devised a longterm energy security plan for meeting the country's energy
needs up to the year 2030. The Iran-Pakistan (IP) gas pipeline project is a key element of this plan. The project construction would take place on engineering procurement construction management (EPCM) approach whereby ISGS, would cause to undertake the engineering and procurement activities and get the project constructed through multiple contractors.
ILF Germany & Nespak will assist ISGS as EPCM in this regard. After completing the front-end engineering design (FEED), bids shall be invited from engineer procure construct (EPC) contractors for construction of the pipeline, in which the local gas utility companies, SSGC & SNGPL, will be encouraged to participate either on their own or in joint
venture with international contractors. ISGS is responsible for developing and operating the Pakistan segment of the IP gas pipeline. The approximate length of the Pakistan segment of the IP gas pipeline is 781km extending from Iran-Pak border to the Pakistan gas off-take point near Benazirabad. - NNI
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Wednesday, August 10, 2011
Administrator Karachi review arrangements for monsoon
City Govt officials told to pull up socks Staff Reporter
KARACHI: Chief Minister Sindh Syed Qaim Ali Shah presideng over a meeting regarding de-weaponisation at CM House. -Online
Traders criticise hike in gas price KARACHI: Industrialists and traders alike have criticised repeated hike in gas prices and said that gas is also the lifeline like petroleum products and increase in its prices will raise the cost of doing business. Taking serious notice of the adverse impact of the decision on cost of manufacturing of industry and common masses who are already burdened with the price hike of essential commodities, business leaders said it will increase inflation, which is already in double digit. Criticising the increase of gas prices for all sectors except fertiliser sector,. Abdul Wahab Lakhani, Chairman, SITE Association of Industry said he failed to understand as why the govern-
ment has increased gas prices in a short span of time repeatedly. Oil and Gas Regulatory Authority (OGRA) for further burdening the manufacturing sector with the hike in oil prices at a time of high inflation, the industrialists and the business community demanded that the increase in the prices of petrol, diesel, LPG, CNG etc be immediately rolled back. They said that increase in oil prices will inflict this heavy blow on industrial sector at a time when the country was facing a very high inflation rate, especially in food items. Chairman SITE Association of Industry, Mr. Wahab Lakhani said that there is no need to increase gas prices if government includes fertiliser sector and bring it into the
tariff net work instead of giving the zero percent raise. It is very shocking to note that incumbent regime, which had earlier claimed a 100 percent increase for the sector, has succumbed to the pressures of the most influential sector in the country and decided to shift the burden on to other sectors. SITE Chief strongly condemned the move of the government and the OGRA to increase gas prices 13.5 percent for all sectors except fertilizer sector. This would have very negative impact on already deteriorated business conditions and cost of doing business will be increased and we will be in competitive with the rest of world community, he added. -Agencies
Bike output races up 9.75pc in FY11 ISLAMABAD: The production of motorcycles increased by 9.75 per cent during eleven months (JulyMay) of the last fiscal year, Federal Bureau of Statistics (FBS) reported on Tuesday. The motorcycle production was recorded at 1,488,426 units in JulyMay (2010-11) against the production of 1,262,021 units in the corresponding period of 2009-10, FBS data revealed. However, as compared to the production of 135,052 units in May 2010, the motorcycle production in May 2011 increased to 148,223 units. The Motorcycle production in the country has spread at cottage level as out of 65 motorcycle
assemblers, more than one dozen produced less than 1000 units in the fiscal year 2009-10, according to data compiled by Assemblers of Pakistan (APMAP). Thirteen manufacturers produced about 500 units each, four manufactured 100 units and two produced less than 100 units. The smallest player produced only 16 motorcycles, according to the data whereas ten manufacturers produced just over 5,000 motorcycles and 16 produced just over 1,000 units. According to information gathered from the Engineering Development Board (EDB), Honda was the only one to produce
more than half a million motorcycles during the year under review. During the period, only four motorcycles assemblers produced more than 100,000 units of which three were Chinese models and one Japanese brand. The next three highest producers rolled out over 40,000 motorcycles each while three manufacturers produced over 30,000 units each, three produced over 20,000 each and seven produced over 10,000 each. Domestic motorcycle industry now completely dominates the local market and not even a single motorcycle has been imported since 2007-08. -APP
SAI rejects KWSB new water tariff Staff Reporter KARACHI: Abdul Wahab Lakhani, Chairman, SITE Association of Industry (SAI) has out rightly rejected the decision of KWSB of increasing the water tariff by 82 per cent from August 2011 and doing away with subsidized water rates for bulk consumers. Abdul Wahab Lakhani said that the decision of the KWSB Board taken in its meeting is unilateral as real stock holders the general public and the commercial and industrial bulk consumers were not taken into confidence and without realizing as what would be the impact of the 82 pc increase into one jump on the general public and the bulk consumers especially the industries. He said that the industries
in SITE area are getting water from SITE Ltd, and also from KWSB directly and are paying the charges regularly to both the agencies in order to get uninterrupted water supply and meet their requirement but despite of all this the water supply to industries is erratic. He said that at present the KWSB is supplying 5 MGD which is also inadequate for 4000 industries housed in SITE area. Adding further he said that some big textile units in SITE area have made their own arrangements and were purchasing subsoil water from the private contractors to meet the short fall. As regards financial crisis the KWSB is confronted with, the same would have been solved if the Karachi Water and Sewerage Board (KWSB)
had started issuing Electronic Billing to its consumers but it desperately failed because of lethargic attitude of KWSB management. Increasing the tariff by 82 pc means that the prices of water supplied by KWSB would become double. Mr. Abdul Wahab Lakhani said that the move of KW&SB to erode the competitiveness of industrial produce by doubling the tariff is hardly understandable in context of the improvement of economy which is the desired policy of governments at all tiers including KWSB. He urged Dr Ishrat-ulEbad, Governor Sindh and Chief Minister Sindh Syed Qaim Ali Shah including Sindh Local Government direct the KWSB Board to reconsider its decision and withdraw it.
Lucky Cement receives two Awards KARACHI: Lucky Cement has been awarded Annual Environment Excellence Award in acknowledgement of the company's pro-active environmental initiatives and Brand of the Year 2010 in category of cement, which represents Lucky Cement's increasing brand popularity, product availability, quality and consistency. Both the Awards were received by Syed Noman Hasan, Chief Operating Officer of Lucky Cement. The Brand of the Year Award was given by Prime Minister, Yousuf Raza Gilani at a ceremony held at Governor House, Karachi. Lucky Cement has been receiving Environment Excellence Award for two consecutive years and was among the Top 10 companies with the E n v i r o n m e n t a l Excellence in business practices. This Award was given by the National Forum for Environment and Health (NFEH), which is affiliated with United Nations Environmental Program (UNEP) and is supported by the Ministry of E n v i r o n m e n t , Government of Sind and the Ministry of E n v i r o n m e n t , Government of Pakistan. -PR
Call to refund textilers’ duty drawback KARACHI: Chairman, Pakistan Apparel Forum, Muhammad Jawed Bilwani has urged the Government to extend maximum support and facilitation to value-added textile including earliest possible clearance for duty drawback claims of textile exporters. He maintained that the textile exporters were posed to liquidity crunch. From the total amount Rs 28.72 billion of drawback of local taxes and levies submitted by the exporters to State Bank of Pakistan only Rs 5.3 billion have been disbursed so far. This has caused great difficulties to the value-added textile exporters, said a release from Pakistan Apparel Forum here on Tuesday. He said at present the value-added textile sector, which is the backbone of the national economy, is striving for its survival. The major problems facing it are the increasing overheads, shortage of power and gas, and poor infrastructure. He said the business community is also concerned over the law and order situation of the city. -APP
K A R A C H I : Administrator Karachi Fazlur Rehman has directed city government officers to immediately start working after assuming the position they held on 8th July 2011 and give final shape to arrangements for ensuing monsoon rains along with the preparation of contingency plan. He said this after a visit of different areas of city and while addressing a meeting of the city government and town administrators with the DCO Karachi Mohammad Hussain Syed on Tuesday. Earlier Administrator
Karachi went to Gujjar Nullah, Orangi Nullah, Banaras Chowk Flyover and inspected the construction work of storm water drain at Ziauddin Roundabout. On this occasion he directed concerned officials to make arrangements for temporary drainage of rain water from the area. Along with EDO Municipal Services Masood Alam, he paid a visit to all those low laying areas of city where possible accumulation of rain water was pinpointed. Administrator Karachi said city government and town officers held all the record of such places which had been facing hur-
dles in drainage of rain water during monsoon, therefore, all the required machinery and manpower must be transferred to such places in advance. He expressed hope that the citizens would not have any difficulty during expected rains as city government has already made the arrangements. Administrator Karachi also directed city government departments including municipal services and works and services to ensure coordinated efforts for effective arrangements for monsoon. He also stressed the need for paying especial attention to city slums. Administrator Karachi
instructed to set up a special cell of machinery and manpower for monitoring of major city drains. He said the city and town administration possessed vast experience of dealing with civic affairs. The town administration must immediately make their department's functional especially solid waste management which needs to be activated in advance so that the garbage generated in city could be dispatched to landfill site before the rainy season. He said municipal services work could not be stopped for even a day, hence all concerned organizations must start working without delay.
KARACHI: Administrator Karachi Fazlur Rehman presiding over CDGK meeting to review the preparations regarding monsoon. -Staff Photo
FWO owes Rs3.5bn to NHA, Senate body told ISLAMABAD: Chairman National Highway Authority (NHA) Muhammad Ali Gardezi told the Senate Standing Committee on Communications on Tuesday that NHA was facing financial crunch and an amount of Rs 3.5 billion was pending with the Frontier Works Organization (FWO) on account of revenue collected by toll plazas on national highways and motorways. The committee met under the chairmanship of Senator Mir Wali Muhammad Badini in the National Assembly Secretariat and discussed various issues of NHA. The Chairman NHA also presented a comprehensive report of toll plazas operative all over the country before the committee which states that the contract of 28 toll plazas was awarded to FWO, 14 to NLC, and 43 to private persons during the financial year of 201011, a source told APP. He said that the toll plazas of M-1, M-2 and M-
3 are under the control of FWO which collect major chunk of toll revenue. Senator Zahid Khan said these are the toll plazas which are generating more revenue than others and they were awarded to FWO without tendering and added that all the contracts of toll plazas should be given by following proper rules and regulations, the source added. Gardezi informed the committee that an amount of Rs 13 billion of contractors was pending against NHA and Finance Ministry is not releasing grant timely. The representative of Finance Ministry told the committee that first installment of allocated grant of NHA worth RS 2.3 billion has been released to NHA which would be delivered within two or three days, he said. Senator Salahuddin Dogar said that the Finance Ministry should release funds allocated for NHA timely and asked the ministry not to cut its budget as it is the backbone of economy. He also said that the com-
mittee would also request to the Prime Minister for the further allocation of funds for NHA. The committee directed the Finance Ministry to release 2nd installment of NHA by August 18 and report the committee. Discussing about the new projects of NHA for the fiscal year of 201112,the Chairman briefed the committee that, the department proposed 7 new projects in Punjab,3 in Sindh and 2 in Baluchistan. Senator Zahid Khan expressed serious concerns over non-inclusion any new project in Khyber-Pakhtunkhwa (KPK) in the current year's PSDP and said that it is injustice with the people of KPK despite his province was badly affected by the flood than other provinces. He directed Chairman NHA, to inform the committee about the reasons for not proposing any new project for KPK and said that he would raise this issue in the next Senate Session.-APP
KARACHI: Students gather outside Government Islamia Arts & Commerce College for the paper of technical diploma. -Online
PTCL upgrades broadband data rate ISLAMABAD: Pakistan Te l e c o m m u n i c a t i o n Company LTD (PTCL) Tuesday upgraded its 1-mbps connections to 2-mbps for all its existing and new potential broadband customers throughout the country without any extra charges. Under the newly announced package, the 1mbps connection has been powered up to 2-mbps for the same price of Rs 1199 per month giving the unique experience of 2mbps speed to its customers for the rate of 1mbps, said a press release issued here. PTCL broadband gives its customers more for less, with an automatic upgradation valid for three months and after that period, if desired, the customers can switch back to 1mbps by dialing 1236 and confirming it with the representative. SEVP commercial Naveed Saeed viewed this upgradation as a great pleasure for Pakistan Te l e c o m m u n i c a t i o n Company to provide PTCL customers with an experience of 2mbps speed for the price of 1mbps. He stated that this upgradation supports our aim to provide uninterrupted service to all our existing and new customers at extremely affordable rates. This newly offered data rate will have an added effect of segmenting our customers; he further added that "keeping in mind the needs of PTCL customers, we will introduce more such offers to facilitate the users in future; PTCL has always and will always strive to provide its customers with the best and most affordable services". Aasif Inam EVP Consumer Services said that PTCL Broadband is providing the most affordable high-speed internet in Pakistan and by this upgradation PTCL has again reinforced its commitment to provide its customers with seamless services to fulfill the requirements of all the segments of the rapidly growing family of PTCL Broadband customers.-PR
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Wednesday, August 10, 2011
Swiss franc surges to new record; Fed moot widely eyed Yen rises above last week's intervention levels NEW YORK: The Swiss franc soared on Tuesday to record highs for a third straight day against the euro and dollar as concerns about the global economic outlook and a rout in stock markets drove investors to safety. Analysts said focus is now on Tuesday's meeting of the US Federal Reserve's policy committee, with investors likely to scour for hints about any new monetary stimulus program with fears of a new global downturn growing. The Japanese yen, which also tends to benefit in times of market stress, breached 77 yen per dollar, above levels that triggered official intervention from Tokyo last week. The growth-sensitive Australian dollar briefly fell below parity against the US currency but recovered. The Fed is slated to make its interestrate decision and release the accompanying statement around 1815 GMT. "With central bankers around the world recently carrying out various forms of
intervention...one wonders what tricks are left," said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in Greenwich, Connecticut. The euro dropped to its lowest on record at 1.0475 Swiss francs on trading platform EBS. It was last at 1.0528 in volatile trade, down 1.7 per cent for the day. The franc also rose to an alltime high versus the dollar on EBS of 0.73592 before easing to 0.7394, with the dollar down 2.1 per cent. The euro has fallen about 15 per cent versus the franc so far this year. Analysts said the franc could reach parity with the euro, despite the Swiss National Bank's recent move to cut interest rates and warnings over the franc's strength. The SNB may be reluctant to intervene
in currency markets after attempts to weaken the franc when the euro fell below 1.50 in the wake of the Lehman crisis left the central bank sitting with heavy losses. One-month implied volatility in the euro/Swiss -- a measure of the market's expectations of future move-
ments in the currency pair -- hit record levels of around 26 per cent. Against the yen, the dollar fell as low as 76.98 on EBS, not far from a record low of 76.15 yen reached in mid-March. It last traded at 77.20 yen, down 0.7 per cent. Japan intervened to stem yen strength last week when the dollar/yen was trading
around 77.10 yen. Japanese Finance Minister Yoshihiko Noda repeated on several occasions that he was watching markets closely, but said that authorities would wait to see market reaction to the US Fed decision before deciding whether to act again. The dollar briefly spiked against the yen in Asia, fueling speculation that Tokyo authorities had stepped into the market to follow up on last week's massive yen selling intervention, but there were no sightings of official action on Tuesday. The Australian dollar earlier fell below parity against the US dollar, sliding to $0.9927, its lowest in about five months, but later recovered to $1.0165, still down 0.3 per cent on the day. The euro rose 0.6 per cent to $1.4259 after European Central Bank President Jean-Claude Trichet said the ECB was actively buying government bonds. Traders said the ECB was buying Spanish and Italian bonds for the second day running. -Reuters
Stock recovery, intervention Yuan falls in NDFs, help Asia FX trim losses pace of appreciation Indonesia, Taiwan cbanks also seen intervening SINGAPORE: Emerging Asian currencies fell on Tuesday on heavy stock outflows before intervention and a recovery in the share markets helped them cut losses, but the near-term outlook remains cloudy on concerns about the Europe debt crises and US economy. Asian shares slumped in recent sessions, pulling down their currencies, which had been benefiting from the region's growth story and the reluctance to hold euros due to the ongoing sovereign debt crisis in Europe. The extreme sell-off in risk assets has forced funds to square-up all risk positions and sell Asian currencies as well. "Clearly, the risk factor dominates in the near-term, which pressures down Asian rates and FX. I have closed all my recommendations to pay Asian rates," said Frances Cheung, a strategist at Credit Agricole CIB in Hong Kong. To cushion the impact of a stock sell-off, some of the regional foreign exchange authorities, especially in Indonesia, South Korea and Taiwan, were spotted selling dollars to stem weakness in their currencies, dealers said. The Taiwan dollar, helped by intervention, outperformed most of
its Asian peers. Exporters also bought the South Korean currency for settlements. Foreign investors sold a net 1.18 trillion won ($1.09 billion) in stocks, the largest since March 10 and outpacing their net purchases of bond futures of 998.8 billion won. Bond inflows have also supported the won. The rupiah also cut losses as stock trimmed falls and after Indonesian central bank was spotted buying it for intervention. Earlier, the Indonesian currency slid 0.6 per cent to 8,555 per dollar, breaking through the 50 per cent Fibonacci retracement of its appreciation since late June. "The central bank has been actively supplying the dollar to maintain FX volatility," says an Asian bank dealer in Jakarta, adding BI was seen at the moment. The central bank has been seen using a firm rupiah to fight inflation, but in a statement announcing its rate decision on Tuesday, Bank Indonesia said "it expects the currency to remain stable with a tendency of limited appreciation." Foreign investors sold a com-
bined net $408.7 million in Indonesian stocks during the previous four consecutive sessions, according to Reuters data. That compared with a 14-day moving average of net daily sales of $11.2 million. The Philippine peso recovered most of earlier losses on caution over the central bank's intervention and regional stocks cut falls. The central bank was expected to step in the market, if the peso weakens to 42.80, he added. The dollar is testing major resistance against the Malaysian ringgit at 3.0447. This is the 200-day moving average and has thwarted six attempts by the dollar to overcome it in the space of the last two years. The dollar has not achieved a daily close above this index since 14 July 2009. A daily close above this average is clearly bullish for the dollar and opens the possibility that its long term downtrend is coming to an end. Investors still remain complacently long emerging Asian currencies and may be forced to exit their positions as the global stock market rout takes its toll. The dollar which currently trades at 3.0430 will face further major resistance at 3.0700. Reuters
in question
SHANGHAI: The yuan pulled back against the dollar on Tuesday in the offshore market as investors grew increasingly wary over the pace of yuan appreciation for the rest of this year, amid global economic and market turmoil after Standard and Poor's downgraded US longterm credit. Reflecting expectations of a possible slowdown in yuan appreciation, offshore benchmark one-year dollar/yuan non-deliverable forwards (NDFs) rose to 6.4000 bid late on Tuesday from 6.3770 at Monday's close. Their implied yuan appreciation in a year's time fell to only 0.52 per cent from 0.88 per cent. The People's Bank of China (PBOC) fixed the yuan's midpoint slightly weaker on Tuesday and traders said the central bank appeared to have recently let the yuan track more closely the movements of the US Dollar Index. A closer tie between the yuan's value and the dollar index could be a bad omen for yuan appreciation because China typically links the two during global instability. In the latest case, the government had imposed a virtual peg of the yuan to the dollar for two years during the global financial crisis and lifted the peg only in June 2010 amid signs of a global recov-
ery. "Talk of the possibility of the second round of global recession is swirling in the market now, and China must have begun to worry about the impact of such a scenario on its exports," said a trader at an Asian bank in Shanghai. "We can clearly feel that expectations of yuan appreciation are now weakening, while China's high inflation has also pushed up the yuan's real exchange rate against other currencies." Spot yuan, which was in negative territory most of the session, finished up slightly at 6.4306 per dollar from 6.4360 at the close on Monday as the dollar index resumed falling in early European trade. The currency, which hit an all-time trading high of 6.4250 in intraday trading on Monday, has now appreciated 6.15 per cent since it was depegged from the dollar in June 2010 and 2.47 per cent so far this year. Before trade began, the PBOC fixed the yuan's midpoint to the dollar slightly weaker at 6.4335 from Monday's record high of 6.4305, reflecting the dollar's global movements. The yuan has risen about 0.6 per cent since the start of July, but its gains in the third quarter are likely to remain confined to about 1 per cent, analysts said. -Reuters
Aussie & NZD $ battered on stocks slide, China data SYDNEY/WELLINGTON: The Australian dollar slid one and a half US cents to a fresh five-month trough on Tuesday, while the New Zealand currency dropped 2 per cent as panic selling swept through stock markets across Asia. The selloff was enough to prompt the Reserve Bank of Australia (RBA) to say it was watching markets carefully, though it also noted there were no strains in the domestic money market. The Aussie broke below parity for the first time since March, in part after China reported higher inflation than expected. Investors fear the high reading could limit Beijing's ability to stimulate its economy should global growth slow. The Aussie is particularly sensitive to news from China, the country's key export market. It sank as deep as $0.9927 at one stage before bouncing slightly to $1.0050. The dumping of risk assets was also felt in stock markets with Korean shares tumbling 9 per cent And the Australian market off 3.8 per cent. 'It's a violent move, but it's catching up with what we've seen in the rate space,' said Jarrod Kerr, strategist at Credit Suisse in Singapore.
As clouds have gathered over the global economic outlook, investors have rushed to wager that the RBA would be forced to reverse course and aggressively cut its 4.75 per cent cash rate. Just a week ago the central bank considered tightening to head off inflation. Interbank futures actually imply an easing could come this month, before the RBA's next scheduled policy meeting on Sept. 9. That would be highly unusual as the central bank has not moved rates inter-meeting since the 1990s. The shift was encouraged by news Commonwealth Bank had cut its fixed rate mortgages by up to 60 basis points, reflecting the huge move down in longer-term market rates in recent weeks. The kiwi was also battered, sinking as deep as $0.7969, a level not seen since late May, before paring some losses at $0.8069. The NZ dollar lost more than seven cents so far this month. Strong support is now seen from $0.7973. Both kiwi and Aussie took a pasting against the safe-haven yen and Swiss franc, falling between 2.5 and 3 per cent against each currency. -Reuters
MUMBAI: The Indian rupee ended off the day's low on Tuesday as local shares pared losses and exporters stepped in to sell dollars, although worries over further foreign fund outflows weighed. The partially convertible rupee closed at 45.2050/2150 per dollar, 0.5 per cent weaker than Monday's close of 44.965/975, but off the day's low of 45.40 -- a level last seen on May 25. "Basically, it is tracking the equity market. The equity market came off their lows," said Ashtosh Raina, head of foreign exchange trade at HDFC Bank. In the near-term, the rupee is likely to remain weak and is broadly seen moving in a 44.70-45.50 band, he said. India's main stock index pared losses to 0.78 per cent, after falling as much as 3.3 per cent earlier. "Selling from exporters has seen the rupee off lows," said Vikas Chittiprolu, a senior forex dealer with Andhra Bank. Traders said the risk-off sentiments could halt for a while if Fed policymakers announce
Time Tentative 2:00am 2:45am 5:30am 5:30am 10:00am 10:30am 2:00pm 11th-13th 6:30pm 11th-18th 7:50pm 9:00pm 9:30pm
Source CNY EUR EUR GBP GBP USD USD USD NZD NZD GBP JPY AUD AUD
Events Trade Balance German Final CPI m/m French Industrial Production m/m BOE Gov King Speaks BOE Inflation Report Wholesale Inventories m/m Crude Oil Inventories Federal Budget Balance REINZ HPI m/m Business NZ Manufacturing Index Nationwide Consumer Confidence Core Machinery Orders m/m MI Inflation Expectations Employment Change
Source
Events
Actual
Forecast
JPY CHF EUR JPY EUR CNY CNY CNY GBP GBP GBP CAD USD USD GBP JPY JPY AUD CNY
Household Confidence SECO Consumer Climate German Trade Balance Prelim Machine Tool Orders y/y French Gov Budget Balance Fixed Asset Investment ytd/y Industrial Production y/y Retail Sales y/y Manufacturing Production m/m Trade Balance Industrial Production m/m Housing Starts Prelim Nonfarm Productivity q/q Prelim Unit Labor Costs q/q NIESR GDP Estimate Tertiary Industry Activity m/m CGPI y/y Westpac Consumer Sentiment New Loans
Forecast 27.3B 0.4% -0.1%
Previous 22.3B 0.4% 2.0%
0.9% 1.7M -140.3B
1.8% 1.0M -43.1B 1.3% 54.3 51 3.0% 3.4% 23.4K
37.0 -17 11.5B 34.6% -61.3B 25.4% 14.0% 17.2% -0.4% -8.9B 0.0% 205K -0.3% 2.2% 0.6%
37.6 -7 12.9B
1.9% 10.3K
Previous Day
25.5% 14.7% 17.7% 0.3% -8.2B 0.4% 194K -0.6% 2.1% 1.1% 2.6% 551B
Previous
35.3 -1 12.9B 53.5% -68.4B 25.6% 15.1% 17.7% 1.8% -8.5B 0.8% 201K -0.6% 4.8% 0.2% 0.9% 2.5% -8.3% 634B
Currencies Rate Name EUR-USD USD-CHF GBP-USD USD-CAD AUD-USD EUR-JPY EUR-GBP EUR-CHF GBP-JPY CHF-JPY Gold
Bid 1.4257 0.7402 1.6322 0.9924 1.0160 110.07 0.8732 1.0552 125.94 104.39 1739.87
As per 22.00 PST Ask High 1.4258 1.4290 0.7406 0.7591 1.6326 1.6411 0.9928 1.0008 1.0165 1.0253 110.11 110.63 0.8736 0.8740 1.0555 1.0843 126.01 127.01 104.45 104.66 1740.85 1779.64
Low 1.4157 0.7365 1.6272 0.9909 0.9932 109.11 0.8682 1.0484 125.44 101.96 1715.50
Major Central Banks Overview Central Bank
Next Meeting
Last Change
9/7/2011 9/8/2011 9/7/2011 9/8/2011 8/9/2011 9/15/2011 9/6/2011
9/8/2010 3/5/2009 12/19/2008 7/7/2011 12/16/2008 8/3/2011 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% 1.50% 0.25% 0% 4.75%
Division of National Bank of Pakistan (NBP) KARACHI, August 9,2011 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 HONGKONG KUWAIT MALAYSIA NEWZEALAND QATAR U.A.E KR. WON THAILAND
86.45 140.96 123.07 86.60 115.31 86.57 13.32 1.12 15.82 70.73 16.52 23.05 11.07 317.54 28.43 69.82 23.74 23.54 0.08 2.88
86.25 140.63 122.78 86.40 115.04 86.37 13.29 1.12 15.78 70.57 16.48 23.00 11.04 316.80 28.36 69.66 23.69 23.48 0.08 2.88
86.03 140.25 122.41 86.17 114.74 86.14 13.25 1.12 15.74 70.38 16.44 22.94 11.01 315.97 28.29 69.47 23.63 23.42 0.08 2.87
Stg rises, shrugs off weak output data
LONDON: Sterling rose against the dollar on Tuesday, shrugging off weak UK manufacturing output and trade deficit data, as concerns over the US credit rating and eurozone debt crisis dominated trading and drove some investors to buy the British pound. UK manufacturing output fell by 0.4 per cent and the UK trade deficit widened to 8.873 billion pounds from 8.1 billion pounds. Industrial output was flat, disappointing analysts who had forecast a 0.4 per cent rise. The pound dropped to measures at the FOMC meet- $1.6321 immediately after the ing at 1815 GMT on Tuesday data from $1.6370, but that would soothe the market. reversed those losses and was "There were some rumours last up 0.4 per cent against the that FOMC tonight would be dollar at $1.6381. Traders cited positive, in the sense that they would announce something that would calm the market," said a trader with a foreign bank. Demand for dollar from oil refiners for payment of import dues to Iran weighed on the rupee. The one-month onshore for- topside stops around $1.6420, ward premium was at 14.50 while downside resistance was points from 20 points on seen around the 100-day movMonday, the three-month was ing average at $1.6264. at 46.25 points from 57.50 and The euro rose 0.2 per cent the one-year onshore forward against the pound to 87.06 premium was at 156.50 points pence, lifted by the weak UK data, but gains looked capped by from 178. One-month offshore non- concerns the euro-zone debt crideliverable forward contracts sis is spiralling out of control. Analysts said sterling's losses were quoted at 45.44, weaker could have been greater if it than the onshore spot rate. In the currency futures mar- were not for the US credit ratket, the most traded near- ing downgrade and recent rises month dollar-rupee contracts in Spanish and Italian bond yields, factors that are encouron the National Stock aging investors to look for Exchange and the MCX-SX alternative currencies to the were at 45.2950, while those euro and dollar. on the United Stock Exchange "In isolation this data is defiwas at 45.2900. The total vol- nitely sterling-negative. In ume was at $18.12 billion. - ordinary conditions it feeds the Reuters idea the Bank of England will
Indian rupee off lows; seen weak in near term SEOUL: Foreign currency dealers of the Korea Exchange Bank work in front of screens displaying the Korea Composite Stock Price Index and the exchange rate between South Korean won and US dollar at the bank's dealing room in Seoul. -Reuters
Top Economic Events
not be hiking interest rates any time soon," said Jane Foley, currency strategist at Rabobank. "But at least the UK government is implementing fiscal consolidation. From an international investors' point of view it is something coherent rather than the fiscal mess in the euro-zone and political bickering in the United States." German five-year CDS prices rose above their UK equivalent for the first time on Tuesday on concerns over Germany's credit standing if the European Central Bank's purchases of Spanish and Italian government bonds fail to stem the euro-zone debt crisis. Analysts have compared moves in sterling, euro and the US dollar to a battle between 'ugly' currencies in recent
weeks and weak UK output data is unlikely to improve that sentiment. A third night of rioting and looting across London on Tuesday also darkened the outlook for sterling as it pointed towards spreading social unrest. Attention is now focused on the Bank of England's quarterly inflation report on Wednesday. Sterling could come under further pressure if policymakers downgrade growth forecasts. Financial markets, having factored in at least three quarter percentage point Bank of England rate increases in 2011 at the start of the year, have now priced out chances of a rate hike in 2012. -Reuters
4
Wednesday, August 10, 2011
The Financial Daily International
Interest Rate Scenario
Publisher & Editor-in-Chief: Amir A. Ashary Editor: Shakil H. Jafri Executive Editor: Manzar Naqvi Honorary Advisory Board Haseeb Khan, FCA
S. Muneer Hussain Rizvi
Asim Abbas Ashary, CPA
Khurram Shehzad, CFA
Akhtar M. Zaidi, FCA
Prof. Zakaria Sajid (KU)
Dr. A. Hadi Shahid, FCA
Zahid Bukhari SVP HBL (retd)
Muhammad Arif
Ismat Sabir Head office
111-C, Jami Commercial Street 11, Phase VII, DHA Karachi Telephone: 92-21-35311893-6 Fax: 92-21-35388428 URL: www.thefinancialdaily.com Email Address: editor@thefinancialdaily.com
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Whistling in the dark Prior to the commencement of Ramadan, the public was assured that intensity of electricity load shedding would be reduced during the Holy Month. Ministry of Finance released billions of rupees to settle inter corporate debt and the government also promised to bear the difference between cost of furnace oil and gas to contain the generation cost. However, the situation has got from worse to the worst. At an average, spell of load-shedding ranges from 10 to 16 hours, added to this is un-announced outages in the name of technical faults. Now it is being openly said that generation companies don't utilize the amounts but outages are getting longer. The general perception is that outages are deliberate to create justification for the rental power plants. However, at the best these plants could deliver around 174MW, a fraction of the total demand. Only two subsectors (excluding KESC) hydel and independent power plants (IPPs) are meeting bulk of the requirement and the performance of generation companies operating under Pakistan Electric Power Company (Pepco) is highly disappointing. The performance of KESC is more or less the same. It is demanding nearly double the quantity of gas as against a contract of 180mmcfd. Whenever, gas supply is curtailed due to supply constraints the utility opts for reduction in generation and increases load shedding spells. The government has repeatedly expressed its intention to resolve the issue but every time focus shits from core issues to non-issues. It is necessary to reiterate that power crisis is only due to mismanagement, corruption and rampant theft. Nearly half of the units made available to distribution companies are pilfered. Out of the fifty per cent billed half are collected and remaining half adds to receivables. The distribution companies get paid for only 25 per cent of the units supplied to them. If the government is serious is resolving the crisis it must help the distribution companies in containing theft and recovery of the outstanding amounts. Improving cash flow of distribution companies would enable them to discharge their liabilities towards generation companies and the chain will be completed with payment to fuel supplying companies, refineries and exploration and production companies. Let one point be very clear that distribution companies just can't theft and recover outstanding amounts without the help of law enforcing agencies. As an incentive all the kundas should be converted into legal connection by installing meters. Since recovery of outstanding amounts is not possible in one go, the amount should be recovered in easy installments. Above all a culture has to be created where every consumer has to pay the bill. Some of the areas have been using cost free electricity since independence and the residents have to be told that the practice can't be continued indefinitely.
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.
Muhammad Arif
N
ow a days interest rate decisions have become highly important for business community and people as a whole, since they provide future outlook on inflation and growth in economy. With this perception, State Bank of Pakistan (SBP) in its recent monetary policy decision announced on July 30, 2011 has brought discount rate down by 50bps that is obviously a bold step keeping macro indicators in view. The market was anticipating hold on discount rate but taking advantage of comfortablity on external sector and slight plunge in CPI, SBP opted for a cut that was very much required considering ongoing dismal real GDP growth. One should keep in mind that this decision has come at the wake of month of Ramadan when liquidity requirement increases by Rs 5-7 billion each year. Secondly September onward starts credit offtake period due to seasonal factors. In Pakistan September to February remains months of credit offtake whereas March to August remains months of credit retirement. So obviously cut in discount rate has come at the right moment. Now going forward different circles are measuring its impacts. Business circles do not look much optimist and rightly so as mere 50bps cut can not bring down cost of doing business substantially. Future outlook is also murky and one can't say with clarity that what direction it is going to take over the next couple of months. The basic flaw in making environment quite foggy is the mechanism of SBP in deciding its discount rate. The current system of making announcement after two month is faulty and not combatable with our market conditions. Though, such systems do exist worldwide but its
adoption in Pakistan is not the right approach where data retrieval is not very quick and markets are quite shallow. In fact people sitting in the SBP have been impressed with the media hype. To remain on TV screens after every two moths have become their objectives but that keeps the market at toes. In developed part of the world keeping market at toe makes them resultful but in Pakistan where markets mostly remain closed or inactive due to law and order situations and energy shortfall, such experiments cannot yield appropriate results. It would be in the interest of Pakistan that SBP should revert back to its old system of announcing monetary policy decisions in line with country's seasonal environment in June and end December. That kind of approach would bring stability in the market and would also give more time to SBP to work on monetary policy decisions by using credible and time based data. In case of any emergency, SBP can use its inherent right to announce monetary policy decisions any time. SBP has indicated that CPI has slightly come down and it is now hovering along with investment numbers within the range of 13-15 per cent. However, the investment growth within 13-14 per cent is very low and alarming. In conditions like Pakistan it should not be lower than 20 per cent to keep industry momentum going and to check unemployment numbers that has crossed 15 per cent considering documented economy in view that exists in between 50-60 per cent. Hence unemployment numbers would obviously be more than 15 per cent. M2 growth for FY11 remained 15.2 per cent. Therefore SBP is of the view that if M2 growth remains in the vicinity of 15-16 per cent than CPI would come down to 11-12 per cent. This position is very optimististic as growth in CPI + growth in Real GDP makes M2 growth. Apparently, SBP is projecting real GDP growth in the range of 4-5 per cent. But that would be tied up with inflation numbers that as per independent views are not going to come down below 13per cent since next year energy and petrol
prices can inflate and pressure on current account would come on start of IMF repayments. This can result in fall of Reserve Money growth i.e. at 17.1 per cent in FY 2011 mainly surged on the strength of increase in NFA. The NFA remain increasing or intact in 1HFY 2012 due to inflows on account of receipt of remittances due to Eid-ul-Fiter and Eid-ul-Azha when non-resident Pakistanis mostly send their money home. However 2H FY2012 can witness different picture. This is notable that in FY11 Non-resident Pakistanis remittances remained highest in the history of Pakistan i.e. crossing US$10 billion whereas FDI remained short of 30 per cent as compared to preceding year. However, if recession persists in USA and EU as being anticipated, than flow of remittances can further increase. Now we take above position from a different angle. USA rating has been downgraded. EU is under severe debt crisis. Hence, as earlier stated, both these blocks covering 50 per cent of world GDP i.e. US$31 trillion are going to come under recession. That would make dollar and oil prices to come under pressure. Further if Government succeeds in getting the IMF repayments rollover than at least it would get some time to restructure its economy and facilitate SBP to keep its discount rate at least at hold or even to cut in the time to come. In FY 2011 it raised the discount rate by 150bps making private sector to shred its efforts for availing bank borrowing or financing from other means. This situation still exists and Private sector off take is in negative Government borrowings have shifted towards markets .i.e. an increase of 75.4 per cent. This has created crowding out effect. Hence private sector is at its back right now due to high financing cost, worst law and order situation and energy shortfall. End of this stalemate is still not on sight. On Current account we seem comfortable for the time being but budget deficit is on the higher side. In FY 2011 it was 6.2 per cent of GDP that included Rs120 billion of circular debt. So excluding circular debt it
came out at 5.6 per cent. Fiscal Responsibility Act allows 4 per cent, so it is on the higher side. To bring it down looks impossible. In the current situation immense heat is emanating from the political arena damaging economy from all sides. Further circular debt also likely to increase as deficit of Railway has crossed Rupees one trillion and losses of other PSEs are also on crisis. Karachi the hub of economic activities and two seaports (Gwadar has not come up to the expectations) is on fire, for which SBP cannot do any thing. Frankly speaking all stake holders in Karachi are trying to strengthen the walls of their trenches without bothering about the inhabitants of the city. All of them want their hold on the city in any case. The stalemate seems to continue with no end for the time being. So it is also creating problems to formulate any viable fiscal and monetary policy in the best interest of this country. Another drawback in formulation of fiscal and monetary policies up to the expectations is tax to GDP ratio that is below 10 per cent as compared to 17 per cent in India and 45 per cent in EU. With the prevailing situation how can one run the country? Government functionaries have not been able to convince or create awareness that without documentation tax cannot be collected from Services (50 per cent of GDP). Wholesale, retail and agriculture sectors are out of the ambit of tax collection. Looking from the perspective of business community the things are highly gloomy that's why investment is on the decline, private sector credit offtake is in negative and capital formation is on contraction (3.1 per cent). Keeping in view these facts concrete steps are required. Apparently it looks that dream of bringing discount rate to single digit is still far away and for this not only SBP or other regulators but combined efforts from all, specifically from stakeholders representing political parties and establishment are urgently required. To start with they all have to focus on law and order situation and to reduce energy shortfall in the first instance.
Chinese swagger over US distress could sour relations A
merica's debt troubles have triggered a burst of popular anger and swaggering self-confidence in China that, if unchecked, could complicate the broader U.S.-China relationship, making it harder for leaders to manage disputes from Tibet to Taiwan. The bitter debate in Congress over spending and last week's downgrade of the U.S. sovereign credit rating unleashed a torrent of blunt and sometimes vitriolic commentary from China's state media, which criticized the world's biggest economy for its "debt addiction" and "short-sighted" political wrangling. Such comments were hardly a surprise. China has parked about two-thirds of its $3.2 trillion foreign reserves into U.S. government debt, making it uniquely vulnerable to any default, its ruling Communist Party likes to score publicity points from American failings. Some commentators have suggested that China use its position as Washington's biggest creditor as leverage on non-financial issues. Combined with Chinese leaders' public silence on the downgrade, that could create a dangerous brew of uncertainty and inflated expectations about Beijing's intentions. Last week, a popular tabloid linked to the Communist Party's mouthpiece argued that China should use its "financial weapon to slap Washington" over arms sales to Taiwan. "We're reluctant to use the United
States' debt bonds as a weapon, but Washington is forcing China to do this," Ding Gang, a senior reporter for the People's Daily, wrote in the Global Times. Editorials in state media are not necessarily a direct reflection of official thinking. But as public indignation over the debt crisis echoes across the Internet, there is the possibility that the swelling propaganda, and the expectations for a tough line that it can encourage, will crimp Beijing's room for maneuver in its relations with Washington, said Bonnie Glaser, an expert on U.S.-China relations at the Center for Strategic and International Studies in Washington, D.C. "There are louder and louder voices that are saying China has many other important relationships and that the U.S. is increasingly weak, and therefore China can stand up for its own interests," she said. SHOUTS AND HARANGUES This isn't the first time China's leaders have confronted nationalist passions that can shape foreign policy. Some analysts argue that antiJapanese protests at home last year contributed to China's unyielding position in a dispute with its neighbor over the fate of a Chinese boat captain who had rammed a Japanese coast guard vessel. And when China proved to be the only major economy that continued to grow strongly through the global financial
crisis that began in 2008, the country's officials struggled against a common misperception that China could ignore the demands of Western powers and assert its national interests more boldly. This time, anger over the debt crisis has combined with a growing conviction among China's elite that the United States is in decline and so the time has finally come for China to take its place on the world stage. "The United States lacks great politicians," said Zhao Changhui, a wellknown Chinese economist and country risk analyst. "Up until now, the United States has refused to acknowledge the fact that it is declining." Such sentiments, along with the fury that is being vented by the public in blogs and online chatrooms, could limit Chinese policymakers' options. "The government will have its own worries regardless of pressure from others," said Jin Canrong, an expert on the United States at Renmin University in Beijing. "But other people in society will shout and harangue, demanding answers, and that will increase domestic pressures on the government." That in turn could influence China's stance on key issues, such as U.S. support for the Dalai Lama or weapons sales to Taiwan, said Glaser, the Washington-based expert. "If the reaction (to arms sales to Taiwan) from netizens and hardliners, and particularly some of these PLA (People's Liberation Army) people who
are so outspoken, is really excessive and the leadership is intimidated by it, then they may have to react more harshly than they originally planned to pacify people," she said. "There could be this spiraling effect where the actual impact on Sino-U.S. relations could be far greater than even the leadership itself wants." US ELECTION FLASHPOINT Glaser and other analysts said that Chinese President Hu Jintao made it clear after last year's tensions that he considers stable ties with the United States a priority, despite persistent tensions between them. Those relations will be in the spotlight later this month, when Vice President Joseph Biden visits China. "Now most sensible people believe that the United States has been weakened but will remain unsurpassable for at least 10 years or 20 years," said Yuan Peng, a researcher at the China Institutes of Contemporary International Relations, a government-run think tank in Beijing. "Imagine, if (U.S. politicians) fight so much about domestic issues, then China policy could also be seriously affected by domestic political pressures. That could harm relations, especially with the presidential election next year," he said. "We've also reassessed our views of the U.S. political system. We used to admire its checks and balances. But now the shortcomings of that system are much more obvious." -Reuters
Libya rebels clean house after slaying of commander ibya's rebel leader has sacked his cabinet to try to rebuild confidence in the opposition that was damaged by the murky killing of the rebels' own military commander. Mustafa Abdel Jalil, leader of the rebels' National Transitional Council (NTC), dismissed his 14-member executive committee on Monday after they were held responsible for blunders linked to the assassination of Abdel Fattah Younes. While the Younes killing brought things to a head, Jalil is also seen as taking the opportunity to get rid of underperforming cabinet members and permit the reappointment of a more effective body. Younes was killed on July 28 after being taken into custody by his own side for questioning. Opposition leaders have linked his killing to elements loyal to Libyan leader Muammar Gaddafi but there has been widespread speculation that rivals in the opposition camp could have been responsible. The killing came as the NTC was winning broader international recognition
L
and it compounded concern among the rebels' Western backers, including the United States, who are frustrated by their lack of unity and nervous about the influence of Islamists. Those backers have been telling the rebels to put their house in order. "It was huge mismanagement," one analyst with knowledge of contacts between the rebels and their Western backers said of the killing of Younes. The initial part of an investigation has been completed and the dismissal of the cabinet was an acknowledgement that there had been certain procedural errors and an acceptance of some responsibility in general terms, analysts said. It was also aimed at highlighting a commitment to democracy and transparency, and demonstrating a readiness to act to fix problems. "Hopefully, this will improve things," said Omar Sallabi, manager of a political research centre at Garyounis University in the rebels' capital of Benghazi. "They want to show that if there's something wrong, they'll change it,"
Sallabi said. DEMAND FOR PROSECUTION The NTC leader had been unhappy for some time with the performance of his executive, said Ashour Shamis, a London-based Libyan opposition activist. Then Younes was killed. "This thing was the straw which broke the camel's back," Shamis told Reuters. "There was a lot of criticism of the council and this worried Mr. Abdel Jalil and drove him to dismiss the cabinet." He said he hoped the new executive would be more professional. "In the past they chose people on an ad hoc basis ... There were some people who were not suitable for the jobs they were given." Younes, a former interior minister under Gaddafi, defected to the rebels soon after the uprising began in February. His relatives and supporters, including leaders of his large tribe, have demanded a full and transparent investigation into his killing. They reiterated that demand after the dismissal of the cabinet, which included officials in charge of defence and interi-
or affairs. "We still insist on bringing those who are involved with the assassination, regardless of their rank or title, to prosecution," relatives of Younes said in a statement. The opposition's prime minister, Mahmoud Jibril, kept his post and will nominate a new line-up and submit it to the NTC for approval. The sacking of the entire cabinet was a culturally acceptable way of getting rid of a few people without singling them out, one analyst said. Many of the members are expected to come back to their old posts and foreign oil companies will be watching to see if Ali Tarhouni, in charge of the oil industry, makes a return. Jibril himself has been spending a considerable amount of his time abroad, to the frustration of Western backers, and he will be expected to refocus his efforts on organising the opposition. "He has to come back to Benghazi and stay here and run things from here," NTC media director Shamsiddin Abdulmolah told Reuters late on Monday. The NTC has been recognised by about 30 countries. -Reuters
5
Wednesday, August 10, 2011
South East Asian stocks
Region tumbles, recovers, then slips again
Europe Shares Halt Sell-Off; Eyes on Fed Policy
KSE-100 Index Opening Closing Change % Change Turnover (mn)
11,404.17 11,034.92 369.25 3.24 69.14
LSE-25 Index Opening Closing Change % Change Turnover (mn)
2,784.36 2,678.73 105.63 3.79 2.69
ISE-10 Index Opening Closing Change % Change Turnover (mn)
2,517.55 2,507.00 10.55 0.42 0.04
Major Gainers
Symbol
Close
Change
ULEVER 6,004.42 AABS 88.75 GTYR 22.56 SRSM 3.85 ANSS 8.00
62.07 2.30 1.06 1.00 1.00
Major Losers
Symbol
Close
Change
NESTLE 3,916.30 SIEM 874.91 MTL 518.93 POL 329.80 APL 321.11
-80.84 -36.09 -18.44 -16.98 -12.29
Top 5 Volume Leaders
Symbol LOTPTA PTC BAFL NBP POL
Close Vol (mn) 10.01 10.56 10.06 44.00 329.80
5.98 5.07 3.99 3.98 2.86
Active Issues Plus Minus Unchanged
54 195 78
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
KARACHI: A broker gestures as he monitors share prices being reflected on the window of a booth from a monitor at the Karachi Stock Exchange. Pakistani stocks fell more than 3.3 per cent and ended at an almost nine-month low, taking a cue from world markets.-Reuters
HK suffers worst single day loss since 2008 HONG KONG/SHANGHAI: Hong Kong shares plummeted on Tuesday in the biggest oneday decline since the 2008 financial crisis, with mutual funds selling off cyclical stocks and knocking the benchmark Hang Seng index down 5.7 per cent to the lowest since June 2010. Investors covered some short positions in the afternoon session, trimming losses ahead of the Federal Reserve's policysetting committee meeting later in the day, but a fresh selloff hitting Europe suggested sentiment on equities could deteriorate further. 'Talk of government funds buying stocks in Korea, Taiwan
and Australia seems to have supported the markets. A lot of these indices are deeply oversold,' said Tom Kaan, a Hong Kong-based director at Louis Capital Markets. 'But all eyes are on the FOMC right now for some sort of credible stimulus. If that isn't forthcoming, then I expect some real money hanging on to longs bailing out,' Kaan added. The Hang Seng benchmark closed down 5.7 per cent at 19,330.7 points, its sixthstraight loss, sinking to its most oversold level on the charts since the 1997 Asian financial crisis as turnover surged to its second-highest in nine months. See # 2 Page 11
Indian shares shed 8pc in six days MUMBAI: Indian shares slid to their lowest close in 14 months on Tuesday taking losses over six sessions to nearly 8 per cent, as investors dumped risky assets across global markets on gloomy outlook for the world economy. Export-driven software firms such as Infosys and Tata Consultancy were among the biggest losers on worries the economic problems could dent demand for outsourcing. India's showcase $76 billion software and services sector, which has already been reeling under competitive pressure and sluggish demand, counts the
United States and Europe as the two biggest markets. Still, India's largely domesticdemand driven economy is seen better placed to withstand the global turmoil, analysts said, and the main stock index pared losses to 0.78 per cent after falling as much as 3.3 per cent early. "India will be impacted in terms of sentiment because of what's happening in the overseas markets," said Sam Mahtani, a London-based fund manager at F&C India Investment Company, which manages $500 million worth of Indian equities. See # 3 Page 11
Nikkei ends down 1.7pc TOKYO: The Nikkei average closed down 1.7 per cent on Tuesday in heavy volume, cutting its losses on bargain hunting after tumbling more than 4 per cent in the wake of a plunge on Wall Street and a downgrade of US sovereign debt. Investors are now turning their focus to a Federal Reserve meeting later on Tuesday for indications of whether the US central bank might ease monetary policy further, market participants said. While foreign investors fled stocks after Wall Street tumbled in the wake of Standard & Poor's downgrade of US sovereign debt, retail investors bought sharp decliners and futures players bought on dips,
traders said. Some traders also cited talk of the Fed making an emergency statement before the US market opens as one factor in the rebound, though most were dismissive of the rumour. The benchmark Nikkei ended down 153.08 points at 8,944.48, after falling as low as 8,656.79 in heavy trade. That was just above an intraday low marked on March 17 of 8,639.56. Analysts said if the Nikkei fell below that point the next support was at 8,227.63, an intraday low posted on March 15. The broader Topix lost 1.6 per cent to 770.39. Tokyo shares are widely seen as undervalued as those listed See # 4 Page 11
ANNOUNCEMENTS Company P.S.O. UniLever Pak Pak Petroleum Ltd.
Period Div/Bon/Right Yearly 20%(F)(D) Half Yearly 210%(i)(D) Yearly 20%(F)(D) 10%(B)
PAT (Rs in mn) EPS(Rs) 14,779.31 86.71 1,532.00 115.20 31,445.72 26.31
PSO earns Rs14.77bn PAT Ahmed Siddique KARACHI: Pakistan State Oil Company (PSO) giant oil marketing announced its financial results for FY11 posting profit after tax of Rs14.77 billion (EPS: Rs86.17) as compared Rs9.05 billion (EPS: Rs52.76) for the corresponding period last year. The Board of Directors also approved Rs2 per share final, which was in addition of Rs8 per share already paid. Despite that decline in sale in volume by 9.7 per cent, top line for the period rise by 10.5 per cent to Rs 820.53 billion from Rs 742.76 billion mainly due to increase in product prices. Total volume dropped by 9.7 per cent mainly due to reduction in offtake of furnace oil by 14.4 per cent and high speed diesel by.9 per cent during FY11, whereas cost of sales was up 10.2 per cent to Rs786.25 billion. Similarly, gross profit surged by 17.5 per cent to Rs34.28 billion. Operating expenses were up 15.6 per cent to Rs10.87 billion from Rs9.41 billion. While, financial expenses took a quantum jump of 20.5 per cent to Rs11.90 billion from Rs9.88 billion during period under review.
PPL net profit up 35pc Aamir Abidi KARACHI: Pakistan Petroleum (PPL), country's leading oil and gas exploration and production company has announced its financial results for the year ended June 30, 2011. Its profit after tax grew by 34.8 per cent to Rs31.44 billion (EPS: Rs26.31) in FY11 from Rs23.32 billion (EPS: Rs19.52) for the corresponding period last year. The Company also announced final dividend of Rs2 per share in addition to already paid two interim dividend of Rs5 per share each. Therefore, the full year payout comes to Rs12 per share for FY11. The Board of Directors also approved issue of 10 per cent bonus shares. The increase in profit can be attributed to: 1) hike in production of oil by 49 per cent and gas by two per cent, 2) an average 15.3 per cent rise in wellhead gas prices which translated into realised gas prices of Rs173.96/mcf for the year, 3) surge in average price of crude oil by 29.5 per cent YoY to $96.72 a barrel against $74.66 a barrel (Arab Light) in FY10 and 4) other operating income grew by72.6 per cent during the period under review. See # 5 Page 11
KSE loses 3pc on global worries Nawaz Ali KARACHI: Karachi Stock Exchange (KSE) saw heavy battering on Tuesday losing more than 3 per cent to close at 11,000 levels after almost 9 months following continued bearish trend at the global stock markets and on fears of foreign selling. The benchmark KSE-100 index lost 369 points - 3.24 per cent to close at 11,034 points, KSE-30 index fell by 407 points - 3.77 per cent to close at 10,407 points, KSE all-share index shed 244 points - 3.09 per cent to close at 7,667 points. "The fear that foreigners can also opt for selling in Pakistani market due to continuous decline in the regional markets force the investors to dump their shares", said Samar Iqbal, equity dealer at Topline Securities. It should be noted that the world stock markets plunged on Tuesday also on US rating downgrade by S&P and fears of global economic recession. According to NCCPL data, foreign investors did a net selling worth $7.55 million at KSE on Tuesday while local banks and funds did a net buying worth $3.92 and $3.18 million respectively. Better than expected
result of PSO failed to lift the market sentiments, Samar added. Following the heavy selling at the US and European stocks market overnight and decline in regional markets, trading activities at KSE began with a quantum loss of 303 points. Further, the decline in international crude oil prices too triggered selling especially in the heavy weight oil stocks as WTI crude oil prices fell below $80 a barrel. Bears stayed at the trading floor throughout the day where buying by the local institutional investors and better than expected results of Pakistan State Oil (PSO) too didn't supported the market. The index at the tail end touched an intra-day low of 11,032 points (-ve 371) and finally closed the day just near those levels. Volumes stayed on the lower side as 69.1 million shares which were 37.6 million shares less as compared to a turnover of 106.7 million shares a day earlier. Lotte Pakistan stood as the volume leader with 5.98 million shares followed by P a k i s t a n Telecommunication with 5.06 million shares and Bank Alfalah with 3.99 million shares. Out of total 327 active issues; 195 declined and 54 advanced while 78 issues remained unchanged.
US stocks mid-day
Wall Street jumps after sell-off NEW YORK: US stocks climbed on Tuesday, putting the S&P 500 on track for only its second advance in the past 12 sessions, but markets remained susceptible to selling if the Federal Reserve fails to ease fears of a double-dip recession. Stocks remained volatile after the benchmark S&P 500 dropped nearly 17 per cent over the past two weeks on wrangling in Washington over the debt ceiling and soft economic data. Stocks almost immediately lost gains after the open and the Dow briefly turned negative before rebounding. Equities suffered a massive decline on Monday, the first session since the United States lost it top-tier credit rating, with the S&P posting its worst one-day loss since December 2008 and nearing bear market territory. Volume was the heaviest since the "flash crash" in May 2010. "You had a cataclysmic selloff in the marketplace," said Cliff Draughn, president and chief investment officer at See # 6 Page 11
LSE witnesses bearish trends LAHORE: Lahore Stock Exchange witnessed bearish trends by losing 105.58 points on Tuesday as LSE-25 index opened with 2784.36 and closed at 2678.78 points. The market's overall situation also did not correspond to an upward trend as it remained at 1.563 million shares to close against previous turnover of 2.680 million shares, showing a difference of 1.116 million shares. While, out of the total 101 active scrips 4 moved up, 51 remained equal and 46 shed values. Dewan Cement Limited, Orix Leasing Pakistan Limited and Pace Pakistan Limited were major gainer of the day by recording increase in their per share value by Rs0.97, Rs0.09 and Rs0.05 respectively. See # 1 Page 11
Dhiyan
BEARISH SENTIMENTS PREVAIL Farhan Mansuri, VP Capital Markets Arif Habib Limited We might see some more bearish activities in the market if the international capital markets continue to decline. Values are attractive and investors can take new positions in oil & gas, fertilizer, telecommunication and third tier stocks. However, they should invest with at least three months perspective. Ease in US financial crisis, decline in international gold prices and slowdown in foreign selling would trigger the market. Today's activity of the market may remain subdued due to volatile global capital markets.
Muhammad Ahsan Rasheed, Director Research & Marketing AMJ Growth
Decline in international capital markets and foreign outflow has discounted the market a lot therefore a rebound is most likely. However if foreign selling continues then index can come down to 10,500 levels. Investors are advised to take position in PTCL and in dividend yielding stocks with stop loss and a three months horizon and they should not take additional exposure. Market would be volatile today.
6
Wednesday, August 10, 2011
Market
KSE 100 Index
Symbols
Volume
69,143,497
Value
4,035,787,240
Trades
42,225
Advanced Decline Unchanged Total
Current High Low Change
54 195 78 327
All Share Index
11,034.92 11,404.17 11,031.46 i369.25
Current High Low Change
7,667.80 7,912.63 7,667.05 i244.83
OIL AND GAS
Company
Paid up Cap(mn)
PE
Current High Low Change
KMI 30 Index Current High Low Change
10,407.25 10,815.22 10,393.62 i407.97
19,496.49 20,151.89 19,465.69 i655.40
High Low 1,402.25 1,353.58 Total cos Defaulter cos 12 P/BV (x) ROE (%) 3.01 32.54
Open
High
Low
Close Chg
Volume
340.00 109.00 7.19 90.00 347.70 133.97 203.97 339.49 62.94 211.00 21.70 215.00
318.01 105.30 6.70 87.08 330.10 129.42 197.02 329.45 60.61 204.50 19.91 202.00
321.11 -12.29 105.92 -4.87 6.82 -0.41 87.08 -4.58 334.36 -9.77 129.78 -6.45 198.47 -8.48 329.80 -16.98 60.61 -3.18 205.67 -9.59 19.91 -1.04 202.14 -8.99
198626 766040 713563 66723 313201 790642 2038166 2859382 15282 953516 4253 2967
Change -63.69 Market cap 992,088.85 mn Div Yield (%) 6.04
Last 60 days High Low 394.90 143.50 10.10 113.75 390.00 157.51 219.70 391.69 89.25 291.50 25.60 233.00
316.35 105.30 6.70 87.08 323.19 129.42 195.51 324.90 60.61 204.50 19.91 195.25
% Change -4.48 5-Day High 1,498.93 5-Day Low 1,359.49
2010 Div BR (%) (%) 300 31 200 55 90 255 80 120
2011 Div BR (%) (%)
20B115.00 - 23.43 - 30.00 20B120.00 -100.00 -100.00 -
10B -
CHEMICALS
Open 737.75 Turnover 39,122 P/E (x) 4.50 Company
High Low 751.52 702.32 Total cos Defaulter cos 4 2 P/BV (x) ROE (%) 1.15 25.53
Close 711.84 Listed cap 3,242.17 mn Payout (%) 11.08
Change -25.91 Market cap 10,807.35 mn Div Yield (%) 2.46
Paid up Cap(mn)
PE
Open
High
Low
Close Chg
Volume
Last 60 days High Low
1092 1321
6.67 5.87
75.11 20.87
76.99 20.40
71.36 20.00
72.49 -2.62 20.00 -0.87
34220 4902
91.20 29.50
Pak Int Cont. Terminal PNSC
70.00 20.00
Paid up Cap(mn)
PE
Open
High
Low
Agritech Limited 3924 Bawany Air 75 3.76 BOC (Pak) 250 7.58 Clariant Pak 341 5.69 Dawood Hercules 4813 2.43 Descon Chemical 1996 Descon Oxychem Ltd. 1020 7.13 Dewan Salman 3663 Dynea Pak 94 3.25 Engro Corporation Ltd 3933 5.52 Engro Polymer 6635 Fatima Fertilizer 22000 Fauji Fertilizer 8482 7.89 Fauji Fert. Bin Qasim 9341 5.96 Ghani Gases Ltd 725 8.79 ICI Pakistan 1388 7.40 Lotte Pakistan 15142 2.80 Nimir Ind Chemical 1106 11.35 Sitara Chem Ind 214 2.10 Sitara Peroxide 551 4.33 Wah-Noble 90 4.81
17.40 8.48 101.00 143.36 44.07 1.59 5.02 1.81 9.90 130.09 8.29 15.58 156.85 46.08 10.88 136.02 10.73 2.80 89.00 14.09 34.00
18.35 7.99 101.25 143.00 42.90 1.78 5.47 1.89 10.40 126.50 8.25 15.46 155.06 45.94 10.80 137.90 10.42 2.75 88.89 14.40 34.05
18.30 7.48 99.00 140.00 41.87 1.55 4.75 1.62 9.25 123.59 7.80 14.80 151.00 44.75 10.40 130.00 9.95 2.60 84.55 13.41 34.00
Close Chg 18.35 7.48 100.63 140.00 41.87 1.60 4.85 1.71 9.90 123.59 7.90 14.96 151.87 45.27 10.46 133.19 10.01 2.61 84.55 14.00 34.04
0.95 -1.00 -0.37 -3.36 -2.20 0.01 -0.17 -0.10 0.00 -6.50 -0.39 -0.62 -4.98 -0.81 -0.42 -2.83 -0.72 -0.19 -4.45 -0.09 0.04
Close 1,701.15 Listed cap 52,251.88 mn Payout (%) 48.81
Last 60 days High Low
Volume 4000 6100 2625 9261 165532 94050 576834 281160 203 2609703 303933 1128240 2807283 2739201 21505 127633 5980567 325504 4284 37506 1205
Change -59.04 Market cap 342,232.70 mn Div Yield (%) 6.06
20.80 9.50 109.99 167.00 66.00 2.79 8.40 3.65 11.48 198.00 12.67 17.60 172.97 48.05 13.90 160.00 15.47 3.30 102.00 18.60 37.99
16.50 6.11 94.00 139.02 41.87 1.52 4.45 1.60 9.22 122.84 7.25 12.20 138.50 41.45 10.40 130.00 9.81 2.26 84.55 13.41 33.35
% Change -3.35 5-Day High 1,817.80 5-Day Low 1,701.15
2010 Div BR (%) (%)
2011 Div BR (%) (%)
5 10R 60 135 25B 50 300B 15 60 20B - 27.5R 130 25B 92.50 65.5 - 35.00 175 5 25 5B 50 -
-
FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,085.82 Turnover 16,520 P/E (x) 5.45 Company
Paid up Cap(mn)
Century Paper Pak Paper Product Security Paper
High Low 1,088.49 1,064.97 Total cos Defaulter cos 4 1 P/BV (x) ROE (%) 0.41 7.47
Close 1,068.60 Listed cap 1,186.83 mn Payout (%) 25.28
PE
Open
High
Low
Close Chg
Volume
707 72.86 50 1.77 411 5.24
15.62 41.55 40.73
15.69 40.57 40.90
15.30 40.56 40.00
15.30 -0.32 41.55 0.00 40.13 -0.60
1550 267 14703
Change -17.22 Market cap 2,948.31 mn Div Yield (%) 4.63
Last 60 days High Low 18.00 45.59 43.55
14.66 40.50 39.00
% Change -1.59 5-Day High 1,109.49 5-Day Low 1,061.78
2010 Div BR (%) (%)
2011 Div BR (%) (%)
2533.33B 50 - 50.00
-
Open 1,090.76 Turnover 38,868 P/E (x) 3.56 Paid up Cap(mn)
Agriautos Ind Atlas Battery Atlas Engineering Ltd Atlas Honda Dewan Motors Exide (PAK)XDXB General Tyre Ghandhara Nissan Ghani Automobile Ind Honda Atlas Cars Indus Motors Pak Suzuki
PE
High Low 1,094.40 1,054.20 Total cos Defaulter cos 19 4 P/BV (x) ROE (%) 0.90 25.35
Open
High
Low
144 4.19 67.99 101 6.01 229.38 247 19.88 43.54 719 6.79 116.86 1087 2.30 71 2.53 183.92 598 4.30 21.50 450 2.53 200 6.51 3.32 1428 9.54 786 6.94 202.92 823 14.60 65.36
67.01 228.00 45.70 119.00 2.25 187.00 22.57 2.60 3.45 9.50 204.00 65.00
67.01 223.50 41.37 112.25 2.00 180.00 21.50 2.55 3.45 8.85 196.00 62.10
Company
Paid up Cap(mn)
Crescent Steel Dost Steels Ltd Huffaz Pipe XD Inter.Steel Ltd. International Ind
PE
565 3.21 675 555 17.73 4350 1199 8.11
Open 25.22 2.00 10.45 11.79 47.73
High 25.00 2.09 10.95 12.55 48.00
Low 24.24 1.82 9.76 10.90 45.35
Close Chg 24.53 1.93 9.93 11.35 45.35
-0.69 -0.07 -0.52 -0.44 -2.38
Close 921.83 Listed cap 3,596.11 mn Payout (%) 30.91
70572 88415 1221 18213 92501
29.25 3.10 12.95 15.06 52.75
Company
Paid up Cap(mn)
AL-Abbas Sugar Ansari Sugar Bawany Sugar Chashma Sugar Clover Pakistan Colony Sugar Mills Faran Sugar Habib Sugar Habib-ADM Ltd J D W Sugar Kohinoor Sugar Mehran Sugar Mirpurkhas Sugar Mirza Sugar National Foods Punjab Oil Quice Food S S Oil Sakrand Sugar Shahtaj Sugar Shakarganj Mills UniLever Pakistan
174 244 87 287 94 990 217 750 200 539 109 173 84 141 414 54 107 57 223 120 695 665
PE
Close Chg
Close 1,079.56 Listed cap 6,768.53 mn Payout (%) 20.42
Volume
Change -11.20 Market cap 39,679.83 mn Div Yield (%) 5.74
Change -35.98 Market cap 13,371.34 mn Div Yield (%) 11.16
24.11 1.52 9.76 0.00 44.20
Company
Paid up Cap(mn)
Al-Abbas Cement Attock Cement Berger Paints
% Change -3.76 5-Day High 989.98 5-Day Low 921.83
2010 Div BR (%) (%) 30 40
2011 Div BR (%) (%)
- 35.00 25B 15.00 20B 15
DG Khan Cement Ltd
Fecto Cement
Close Chg
Last 60 days High Low
Volume
-
2.06
2.45
2.00
2.00 -0.06
10009
3.25
1.82
42.00
42.99
40.51
41.00 -1.00
6101
56.01
40.50
-
12.46
12.25
11.50
11.63 -0.83
7226
16.50
11.50
7076
10.60
982 14.77
EMCO Ind
Low
5.19
-
8.10
8.89
7.30
7.32 -0.78
7.30
% Change -2.65 5-Day High 833.75 5-Day Low 791.01
2010 Div BR (%) (%) - 100R 50
-
- 122R -
-
2011 Div BR (%) (%) -
-
-
-
-
-
1.95
2.00
1.92
1.92 -0.03
605
2.30
1.50
-
-
-
-
-
1.38
1.39
1.26
1.31 -0.07
71270
2.67
1.10
-
-
-
-
4381 26.73
20.79
20.76
19.91
20.05 -0.74
25.85
19.91
-
20R
3891
Fauji Cement
High
866
956 34.86
Dadabhoy Cement Dewan Cement
Open
Change -21.54 Market cap 64,729.47 mn Div Yield (%) 3.61
3657 182
Cherat Cement
PE
Close 791.01 Listed cap 54,792.74 mn Payout (%) 19.04
2318983
-
20R
350
-
1.60
2.60
2.60
2.60 1.00
500
2.60
1.60
-
-
-
-
13311
5.66
3.47
3.49
3.21
3.28 -0.19
358354
5.04
3.21
-
-
-
92R
502
3.36
4.00
5.00
3.81
3.90 -0.10
9306
7.44
3.30
-
-
-
-
Flying Cement Ltd
1760
-
1.08
1.10
0.96
1.00 -0.08
57902
1.95
0.65
-
-
-
-
Gharibwal Cement
4003
-
4.90
5.52
4.51
4.90 0.00
110
9.15
4.25
-
-
-
-
32
-
0.51
0.43
0.43
0.43 -0.08
2000
0.83
0.21
-
-
-
-
1288
-
5.73
5.74
5.00
5.24 -0.49
23271
7.60
5.00
-
-
-
-
13126 53.50
2.26
2.20
2.05
2.14 -0.12
179145
3.35
2.02
-
-
-
-
- 40.00
-
Haydery Const Kohat Cement Lafarge Pakistan Cmt. Lucky Cement
3234
4.70
72.32
71.98
70.50
70.82 -1.50
469401
77.43
69.29
40
Maple Leaf Cement
5267
-
1.88
1.80
1.71
1.80 -0.08
12312
3.05
1.55
-
-
-
-
Pioneer Cement
2271
-
3.65
4.25
3.55
3.81 0.16
13368
6.34
3.50
-
-
-
-
Thatta Cement
997
-
15.00
15.20
15.20
15.20 0.20
1000
20.90
14.51
-
50R
-
-
GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 939.37 Turnover 14,592 P/E (x) 2.60
High Low 952.48 918.90 Total cos Defaulter cos 13 2 P/BV (x) ROE (%) 1.14 43.91
Close 923.58 Listed cap 3,043.31 mn Payout (%) 15.55
Change -15.79 Market cap 33,736.14 mn Div Yield (%) 5.97
% Change -1.68 5-Day High 960.13 5-Day Low 923.58
Paid up Cap(mn)
PE
Open
High
Low
Close Chg
Volume
Last 60 days High Low
Cherat Packagin
172
1.98
42.02
42.50
40.15
40.27 -1.75
21401
53.20
40.15
20
25B
-
50R
ECOPACK Ltd
230
-
1.44
1.50
1.35
1.37 -0.07
1412
1.80
1.06
-
-
-
-
1067
5.24
52.32
53.00
51.50
51.54 -0.78
1120
58.50
51.00
25
10B
-
-
389
1.82
9.14
9.99
9.10
9.14 0.00
111
13.90
9.10
-
-
-
-
Company
Ghani Glass MACPAC Films
2010 Div BR (%) (%)
2011 Div BR (%) (%)
Packages Ltd
844 17.67 106.23
106.00 105.75 105.99 -0.24
10742
118.00
100.80
32.5
-
-
-
Tri-Pack Films
300
186.75 182.00 184.79 -3.20
1155
188.90
163.05
100
-
-
-
7.21 187.99
Company
Company
Paid up Cap(mn)
PE
Open
High
Low
Close Chg
Ados Pak
66
2.93
9.00
8.01
8.01
8.01 -0.99
Last 60 days High Low
Close 1,520.45 Listed cap 1,336.62 mn Payout (%) 131.49
Change -51.46 Market cap 29,826.10 mn Div Yield (%) 18.35
Volume
Last 60 days High Low
1000
10.75
8.00
-
100 215
4.80 3.25 195.29
4.00 4.00 4.00 -0.80 202.00 185.60 188.27 -7.02
500 3508
6.25 244.00
3.80 185.60
400
213 366
7.44 6.03 7.88 537.37
6.25 6.25 6.25 0.22 533.00 515.00 518.93 -18.44
2501 37810
9.78 625.80
5.72 515.00
650
99.20
47.07
100
-
48.95
49.01
48.50
48.95
0.00
110
High
High Low 2,368.96 2,291.20 Total cos Defaulter cos 61 16 P/BV (x) ROE (%) 16.59 30.30
64.50 208.00 35.00 112.10 1.50 163.10 21.40 2.30 3.10 8.55 196.00 61.35
Low
Close Chg 2.30 1.00 0.90 1.00 0.00 0.00 0.00 -0.05 -0.11 -1.22 -0.94 0.00 -1.37 -0.30 0.00 0.50 -0.87 -0.20 -0.03 0.00 0.00 62.07
Close 2,316.95 Listed cap 11,335.33 mn Payout (%) 30.57
Volume
2010 Div BR (%) (%) 90 100 50 60 20 150 5
2011 Div BR (%) (%)
20B 15B 65.00 - 60.00 - 50.00 -
Change -1.80 Market cap 324,930.83 mn Div Yield (%) 0.56
Last 60 days High Low
2000 103.49 84.65 1500 10.85 5.24 1562 9.80 7.50 501 11.75 8.00 292 73.05 60.84 47506 2.99 1.51 4694 19.52 17.50 41243 28.00 23.30 500 13.74 11.14 2200 90.49 74.05 1022 5.84 2.45 319 68.48 51.54 2946 54.50 41.60 1100 3.50 2.12 364 88.00 57.21 10000 43.74 38.00 3401 6.99 1.81 1000 5.78 4.10 5500 3.40 2.00 155 72.20 60.00 857500 6.99 4.05 115 6149.00 4915.70
High Low 570.79 545.85 Total cos Defaulter cos 15 7 P/BV (x) ROE (%) 0.10 10.64
Close 563.01 Listed cap 3,763.71 mn Payout (%) 6.27
PE
Open
High
Low
Close Chg
Volume
68 1219 693
1.15
9.98 5.20 9.14
9.99 5.29 9.40
9.99 4.95 8.16
9.98 0.00 5.06 -0.14 8.70 -0.44
650 77845 8001
Hala Enterprise Pak Elektron Tariq Glass Ind
15B 25B -
% Change -0.08 5-Day High 2,360.85 5-Day Low 2,255.39
2010 Div BR (%) (%)
2011 Div BR (%) (%)
50 10 15 25 25 25B 40 7010B 12.5R 35 20B 22.50 15 20B 10 12 15 28R 10 492 - 210.00
10R 10B 10B -
Change -9.72 Market cap 4,029.40 mn Div Yield (%) 6.52
% Change -1.70 5-Day High 607.86 5-Day Low 563.01
Last 60 days High Low
2010 Div BR (%) (%)
9.99 8.60 13.33
17.5
7.00 4.95 8.10
10B -
2011 Div BR (%) (%) - 200R
PERSONAL GOODS Performance of SR Personal Goods Index Open 940.79 Turnover 5,914,178 P/E (x) 4.57 Company
Paid up Cap(mn)
AL-Qadir Textile Amtex Limited Artistic Denim Azgard Nine Bannu Woolen XD Bata (Pak) Blessed Tex Mills Chenab Limited Colony Mills Ltd Colony Sarhad D S Ind Ltd Dawood Lawrencepur Din Textile Gadoon Textile XD Ghazi Fabrics Gulshan Spinning Hira Textile Mills Ltd. Ibrahim Fibres Ideal Spinning Ishaq Textile J A Textile Kohinoor Ind Kohinoor Mills Kohinoor Textile Nishat (Chunian) Nishat Mills Pak Synthetic Prosperity Ravi Textile Reliance Weaving Rupali Poly Saif Textile Sally Textile Salman Noman Sargoda Spinning Saritow Spinning Service Ind Shadab Textile Shadman Cot Shahtaj Textile Thal Ltd Treet Corp Yousuf Weaving ZahidJee Textile Zil Limited
76 2594 840 4493 76 76 64 1150 2442 40 600 591 204 234 326 222 716 3105 99 97 126 303 509 2455 1621 3516 560 185 250 308 341 264 88 42 312 133 120 30 176 97 307 418 400 341 53
PE
Open
1.06 11.50 2.14 8.00 26.61 4.58 0.56 14.40 7.59 650.00 0.93 102.17 1.23 1.51 1.50 1.30 0.89 - 26.62 0.69 34.50 0.52 56.12 0.35 4.10 0.29 6.90 0.67 3.16 2.17 32.06 0.26 3.01 0.40 4.85 2.01 1.00 1.10 2.92 2.32 2.39 15.72 3.40 40.10 2.35 18.61 0.95 13.66 0.77 0.51 10.00 2.47 33.09 0.19 5.00 0.22 6.05 0.40 2.80 1.60 2.85 0.23 1.15 2.95 179.45 0.49 13.00 14.81 17.00 1.48 27.50 - 89.99 6.04 49.85 0.46 1.11 0.57 6.68 5.43 52.73
High
High Low 953.27 932.48 Total cos Defaulter cos 211 73 P/BV (x) ROE (%) 0.39 8.64 Low
Close Chg
10.50 10.50 10.50 -1.00 2.30 1.85 1.99 -0.15 25.30 25.28 25.28 -1.33 4.57 4.20 4.38 -0.20 14.50 13.45 13.46 -0.94 682.49 645.00 645.19 -4.81 100.99 97.07 97.07 -5.10 1.29 1.11 1.14 -0.09 2.45 1.40 1.45 -0.05 2.30 2.30 2.30 1.00 0.98 0.82 0.95 0.06 27.95 25.29 26.90 0.28 32.78 32.78 34.50 0.00 53.35 53.32 53.32 -2.80 3.51 3.51 3.42 -0.68 7.00 7.00 7.00 0.10 3.40 3.06 3.35 0.19 30.46 30.46 30.46 -1.60 3.94 3.35 3.42 0.41 5.00 5.00 5.00 0.15 2.00 2.00 2.00 -0.01 0.94 0.72 0.94 -0.06 1.59 1.00 1.00 -0.10 2.70 2.25 2.54 0.22 16.09 14.72 15.55 -0.17 39.30 38.10 38.27 -1.83 19.60 17.61 18.79 0.18 14.66 14.55 14.65 0.99 0.90 0.70 0.82 0.05 9.91 9.90 9.90 -0.10 33.89 32.80 32.81 -0.28 6.00 5.00 5.45 0.45 5.97 5.32 5.68 -0.37 2.00 1.95 1.95 -0.85 3.85 3.35 3.85 1.00 1.39 1.06 1.19 0.04 175.80 170.50 172.96 -6.49 13.00 13.00 13.00 0.00 16.00 16.00 16.00 -1.00 27.00 26.13 26.50 -1.00 90.00 85.51 85.99 -4.00 49.20 47.41 48.31 -1.54 1.50 0.37 1.05 -0.06 6.50 6.50 6.50 -0.18 50.50 50.10 50.10 -2.63
Close 939.14 Listed cap 47,070.70 mn Payout (%) 16.68
41.88
Total Assets (Rs in mn)
MA (10-day)
0.87
Total Equity (Rs in mn)
MA (100-day)
0.98
Revenue (Rs in mn)
MA (200-day)
1.20
Interest Expense
1st Support
0.70
Loss after Taxation
(36.14)
2nd Support
0.60
EPS 10 (Rs)
(1.446)
1st Resistance
0.90
Book value / share (Rs)
2nd Resistance
1.00
PE 11 E (x)
Pivot
0.80
PBV (x)
404.42 44.04 432.37 12.64
1.76 0.47
RAVT closed up 0.05 at 0.82. Volume was 303 per cent above average (trending) and Bollinger Bands were 19 per cent narrower than normal. The company's loss after taxation stood at Rs37.191 million which translates into a Loss Per Share of Rs1.49 for the nine months of fiscal year (9MFY11). RAVT is currently 31.8 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of RAVT at a relatively equal pace. Trend forecasting oscillators are currently bearish on RAVT.
Lotte Pakistan PTA Limited
Fundamental Highlights As on Dec 31, 2010
Technical Analysis RSI (14-day)
15.03
Total Assets (Rs in mn)
MA (10-day)
11.60
Total Equity (Rs in mn)
MA (100-day)
14.54
Revenue (Rs in mn)
MA (200-day)
14.23
Interest Expense
1st Support
9.88
Profit after Taxation
2nd Support
9.68
EPS 10 (Rs)
1st Resistance
10.35
22,896.03 9,602.39 42,401.59 229.23 4,527.77 2.99
Book value / share (Rs)
6.34
2nd Resistance
10.62
PE 11 E (x)
1.53
Pivot
10.15
PBV (x)
1.58
LOTPTA closed down -0.72 at 10.01. Volume was 4 per cent above average and Bollinger Bands were 95 per cent wider than normal. The company's profit after taxation stood at Rs2.488 billion which translates into an Earning Per Share of Rs1.64 for the 1st quarter of current calendar year (1QCY11). LOTPTA is currently 29.8 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume out of LOTPTA (mildly bearish). Trend forecasting oscillators are currently bearish on LOTPTA. Momentum oscillator is currently indicating that LOTPTA is currently in an oversold condition.
Pakistan Reinsurance Co Ltd
Volume 500 686246 2000 1963401 3005 118 1001 4200 16147 2000 97660 4756 200 1467 1100 2500 8002 8600 911 500 2697 6898 501 6868 689282 2167223 2504 4500 116772 737 750 10995 10652 2700 22505 18274 2221 210 1000 15600 6881 15610 502 2000 1698
Last 60 days High Low 11.60 3.76 27.10 7.09 19.55 716.00 105.00 2.44 2.64 2.30 1.39 37.50 39.70 73.44 8.00 12.16 4.39 47.00 7.00 7.11 2.80 1.64 2.83 4.69 26.45 61.99 20.90 15.45 1.85 13.05 42.50 9.00 8.94 3.75 4.50 1.98 214.95 14.50 23.94 29.89 108.00 59.20 2.16 7.98 67.00
% Change -0.18 5-Day High 956.48 5-Day Low 939.14
2010 Div BR (%) (%)
9.50 10 1.70 - 30B 21.57 20 3.90 13.45 20 442.02 280 56.07 50 1.10 1.32 0.30 0.80 25.29 5 15B 26.50 20 10B 53.32 70 3.51 10 6.00 10 20B 3.00 10 30.46 20 3.00 4.75 8 2.00 0.72 0.71 2.25 14.72 15 38.10 25 45R 17.60 13.00 30 0.31 9.90 25SD 32.80 40 5.00 5.32 10 1.85 5B 2.51 5 1.06 170.00 75 12.00 10 12.90 5 24.00 45 85.51 80 20B 47.15 50 900B 0.25 6.00 50.10 35 -
2011 Div BR (%) (%) -
-
Open 948.12 Turnover 25,616 P/E (x) 6.13
2011 Div BR (%) (%)
Change -14.68 Market cap 30,446.85 mn Div Yield (%) 7.27
PE
Open
High
Low
Close Chg
Volume
Last 60 days High Low
Abbott (Lab)
979
5.64
92.00
93.99
90.25
92.00
201
97.80
87.00
50
Ferozsons (Lab)
250
7.45
90.79
92.00
90.00
90.00 -0.79
1905
98.73
87.00
-
GlaxoSmithKline
2019
Company
-
-
-
-
9.59
68.63
Highnoon (Lab)
182
6.15
27.85
25B325.00
-
IBL HealthCare Ltd
200
3.48
9.00
-
Searle Pak
-
Close 933.44 Listed cap 3,904.20 mn Payout (%) 44.54
Paid up Cap(mn)
-
-
-
High Low 948.75 922.68 Total cos Defaulter cos 9 P/BV (x) ROE (%) 1.37 22.31
Sanofi-Aventis
96 306
- 152.02 5.76
60.87
0.00
-
2011 Div BR (%) (%) -
-
20B 12.50
-
68.25
65.85
67.10 -1.53
3610
40
15B
26.55
26.55
26.55 -1.30
14310
25
10B
-
-
8.51
8.50
8.50 -0.50
1000
10.70
8.50
-
-
-
-
2090
155.00
142.50
100
-
-
-
2500
62.80
54.00
30
-
-
-
59.00
59.00 -1.87
33.45
65.85
2010 Div BR (%) (%)
152.00 152.00 152.00 -0.02 60.10
79.99
% Change -1.55 5-Day High 976.61 5-Day Low 933.44
25.21
-
-
Fundamental Highlights As on Dec 31, 2010
Technical Analysis RSI (14-day)
22.20
Total Assets (Rs in mn)
MA (10-day)
14.76
Total Equity (Rs in mn)
6,411.91
MA (100-day)
16.48
Revenue (Rs in mn)
3,018.42
MA (200-day)
16.51
Interest Expense
1st Support
12.91
Profit after Taxation
2nd Support
12.36
EPS 10 (Rs)
1.754
Book value / share (Rs)
21.37
1st Resistance
Change -1.65 Market cap 109,393.96 mn Div Yield (%) 3.65
PHARMA AND BIO TECH
% Change -3.27 5-Day High 1,692.13 5-Day Low 1,520.45
2010 Div BR (%) (%)
AL-Khair Gadoon AL-Ghazi Tractor
57
73.00 241.50 45.70 160.00 3.46 235.00 24.85 4.41 3.75 11.58 232.53 72.50
Performance of SR Pharma and Bio Tech Index
Ghandhara Ind Millat Tractors Pak Engineering
200 778 401 2626 6956 1568 2701 2405 7152 5955 4303 3822
Paid up Cap(mn)
Performance of SR Industrial Engineering Index High Low 1,562.44 1,507.67 Total cos Defaulter cos 11 1 P/BV (x) ROE (%) 2.72 38.02
Open
Open 572.74 Turnover 85,882 P/E (x) 0.96
INDUSTRIAL ENGINEERING Open 1,571.91 Turnover 45,504 P/E (x) 7.17
0.00 -3.21 0.00 -3.38 -0.25 0.40 1.06 0.03 0.13 -0.56 -2.07 -0.52
% Change -1.03 5-Day High 1,108.38 5-Day Low 1,079.52
Fundamental Highlights As on Jun 30, 2010
Technical Analysis RSI (14-day)
HOUSEHOLD GOODS
Performance of SR Construction and Materials Index High Low 816.51 783.13 Total cos Defaulter cos 37 6 P/BV (x) ROE (%) 0.37 7.10
67.99 226.17 43.54 113.48 2.05 184.32 22.56 2.56 3.45 8.98 200.85 64.84
3.90 86.45 88.75 88.75 88.75 7.00 8.00 8.00 8.00 8.10 9.10 9.00 9.00 6.58 9.00 10.00 10.00 10.00 46.07 64.04 60.85 60.84 64.04 2.03 1.97 2.10 1.62 1.97 1.88 19.00 19.00 19.00 19.00 4.99 24.99 25.00 24.26 24.94 5.00 12.51 12.40 12.40 12.40 2.54 78.54 80.00 76.27 77.32 3.50 4.40 2.51 2.56 2.35 52.20 53.50 52.50 52.20 1.40 49.47 48.26 48.10 48.10 0.48 2.43 2.20 2.12 2.13 10.40 60.22 60.00 57.21 60.22 3.11 40.00 40.50 40.50 40.50 11.36 5.87 5.90 5.00 5.00 0.29 4.30 4.10 4.10 4.10 2.36 2.33 2.25 2.33 2.74 68.77 72.20 72.20 68.77 2.03 4.80 4.80 4.80 4.80 26.06 5942.35 6149.00 5950.00 6004.42
CONSTRUCTION AND MATERIALS Open 812.55 Turnover 3,547,947 P/E (x) 5.27
-
Performance of SR Household Goods Index
Last 60 days High Low
Volume
2011 Div BR (%) (%)
- 50SD -
FOOD PRODUCERS Open 2,318.75 Turnover 975,617 P/E (x) 54.75
Performance of SR Industrial Metals and Mining Index High Low 967.94 909.72 Total cos Defaulter cos 7 1 P/BV (x) ROE (%) 0.92 33.10
40 15
Performance of SR Food Producers Index
INDUSTRIAL METALS AND MINING Open 957.81 Turnover 252,711 P/E (x) 2.77
2010 Div BR (%) (%)
Performance of SR Automobile and Parts Index
Company
High Low 1,738.71 1,689.63 Total cos Defaulter cos 36 6 P/BV (x) ROE (%) 2.82 35.00
% Change -3.51 5-Day High 772.31 5-Day Low 711.84
AUTOMOBILE AND PARTS
Performance of SR Chemicals Index
Company
Ravi Textile Mills Limited
Performance of SR Industrial Transportation Index
Close 1,359.49 Listed cap 65,194.15 mn Payout (%) 55.94
Attock Petroleum 691 5.80 333.40 Attock Refinery 853 3.47 110.79 BYCO Petroleum 3921 7.23 Mari Gas Company 735 3.56 91.66 National Refinery 800 4.62 344.13 Oil & Gas Development 43009 8.78 136.23 Pak Petroleum 11950 5.85 206.95 Pak Oilfields 2365 7.27 346.78 Pak Refinery Limited 350 33.86 63.79 P.S.O 1715 3.15 215.26 Burshane LPG 226 - 20.95 Shell Pakistan 685 7.19 211.13
Open 1,760.19 Turnover 16,004,075 P/E (x) 8.06
Alert ! Unusual Movements
INDUSTRIAL TRANSPORTATION
Performance of SR Oil and Gas Index Open 1,423.18 Turnover 8,004,545 P/E (x) 9.26
KSE 30 Index
13.85
12,534.89
0.00 526.25
2nd Resistance
14.24
PE 11 E (x)
4.68
Pivot
13.30
PBV (x)
0.63
PAKRI closed down -0.02 at 13.49. Volume was 57 per cent below average (consolidating) and Bollinger Bands were 18 per cent narrower than normal. The company's profit after taxation stood at Rs214.513 million which translates into an Earning Per Share of Rs0.72 for the 1st quarter of current calendar year (1QCY11). PAKRI is currently 18.3 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 volume flowing into and out of PAKRI at a relatively equal pace. Trend forecasting oscillators are currently bearish on PAKRI. Momentum oscillator is currently indicating that PAKRI is currently in an oversold condition.
Silk Bank Limited
Fundamental Highlights As on Dec 31, 2010
Technical Analysis RSI (14-day)
27.50
Total Assets (Rs in mn)
MA (10-day)
2.20
Total Equity (Rs in mn)
MA (100-day)
2.50
Revenue (Rs in mn)
MA (200-day)
2.54
Interest Expense
1st Support
1.95
Loss after Taxation
2nd Support
1.85
EPS 10 (Rs)
1st Resistance
2.10
72,603.41 4,817.09 7,960.37 0.00 (1,131.15) (0.423)
Book value / share (Rs)
2nd Resistance
2.15
PE 11 E (x)
Pivot
2.00
PBV (x)
1.80 12.38 1.10
SILK closed down -0.10 at 1.98. Volume was 53 per cent below average (consolidating) and Bollinger Bands were 45 per cent wider than normal. The company's profit after taxation stood at Rs101.991 million which translates into an Earning Per Share of Rs0.04 for the 1st quarter of current calendar year (1QCY11). SILK is currently 22.0 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume out of SILK (mildly bearish). Trend forecasting oscillators are currently bearish on SILK. Momentum oscillator is currently indicating that SILK is currently in an oversold condition.
BOOK CLOSURES Company
From
To
(TFC) Allied Bank 2nd Issue Allied Bank (TFC) Pakarab Fertilizers Hum Network # Nishat Chunian Power # Meezan Bank Mehran Sugar Mills Security Papers United Bank First Habib Modaraba Fauji Fertilizer MCB Bank Fauji Fertlizer Bin Qasin Lucky Cement
13-Aug 15-Aug 15-Aug 16-Aug 16-Aug 17-Aug 17-Aug 17-Aug 22-Aug 25-Aug 29-Aug 02-Sep 13-Sep 21-Sep
26-Aug 21-Aug 27-Aug 22-Aug 22-Aug 25-Aug 23-Aug 25-Aug 30-Aug 31-Aug 04-Sep 09-Sep 19-Sep 29-Sep
D/B/R 25(I) 10(I) 7.5(III) 50(F) 15(I) 22 47.5(II) 30(III) 22.5(II) 40
Spot AGM/Date -
22-Aug 22-Aug 25-Aug 29-Aug 29-Sep
INDICATIONS # Extraordinary General Meeting
OTHER SECTORS Symbols
Open
High
TRG Pakistan Ltd. Murree Brewery Co. Shakarganj Food Shifa Int.Hospital Pak Hotels P.I.A.C.(A) AKD Capital Limited Pace (Pak) Ltd. Netsol Technologies Pak Telephone
1.89 107 5.65 33.45 28.5 1.76 28.68 1.72 16.44 3.15
1.9 108 6.5 34 27.1 1.89 27.31 1.68 16.3 2.71
Low Close 1.79 102 4.71 33.9 27.08 1.61 27.25 1.52 15.44 2.71
1.81 102.13 5.84 33.45 27.1 1.67 28.68 1.64 15.44 2.71
Change -0.08 -4.87 0.19 0 -1.4 -0.09 0 -0.08 -1 -0.44
Vol 327813 18905 20500 210 510 39591 437 157057 118244 5497
7
Wednesday, August 10, 2011
FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 684.86 Turnover 5,370,625 P/E (x) 3.23 Paid up Cap(mn)
Company Pak. Telecomm Co A Telecard WorldCall Tele Wateen Telecom Ltd
PE
37740 3000 8606 6175
8.66 2.19 -
Open
High Low 714.30 648.99 Total cos Defaulter cos 5 P/BV (x) ROE (%) 0.42 12.84
High
10.57 1.29 1.53 1.75
Low
10.99 1.54 1.56 1.73
10.06 1.16 1.40 1.62
Close Chg
Close 680.75 Listed cap 50,077.79 mn Payout (%) 62.56
Volume
10.56 -0.01 1.29 0.00 1.41 -0.12 1.70 -0.05
5065089 145103 160413 164934
Change -4.12 Market cap 42,730.94 mn Div Yield (%) 19.35
Last 60 days High Low 17.70 1.94 2.50 2.97
10.05 1.15 1.20 1.07
% Change -0.60 5-Day High 763.75 5-Day Low 679.77
2010 Div BR (%) (%) 17.5 1 -
2011 Div BR (%) (%)
-
-
Atlas Insurance Central Insurance Century Insurance EFU General Insurance Habib Insurance IGI Insurance Pak Reinsurance Premier Insurance Reliance Insurance United Insurance Universal Insurance
443 3.51 391 1.06 457 4.04 1250 11.47 450 7.64 970 5.90 3000 4.68 303 3.24 284 5.48 496 1.56 263 -
28.72 51.42 7.65 30.65 11.00 72.00 13.51 7.07 9.00 4.50 1.61
Paid up Cap(mn)
Company
Hub Power Japan Power KESC Kohinoor Power Kot Addu Power Nishat Chunian Power Ltd Nishat Power Ltd Sitara Energy Ltd Southern Electric Tri-star Power XD
PE
11572 1560 7932 126 8803 3673 3541 191 1367 150
7.63 2.02 5.09 2.33 2.06 5.12 -
Open
High
38.98 1.07 1.81 2.70 41.63 13.01 14.58 18.50 1.14 0.75
38.89 1.10 1.90 3.00 41.50 13.30 14.67 17.60 1.14 0.75
Low 37.75 1.00 1.61 2.51 39.55 12.60 13.99 17.55 1.00 0.75
Close Chg 37.98 1.00 1.84 2.60 39.62 12.93 14.42 18.50 1.12 0.75
Close 1,305.97 Listed cap 95,369.29 mn Payout (%) 104.13
Volume
-1.00 -0.07 0.03 -0.10 -2.01 -0.08 -0.16 0.00 -0.02 0.00
1332012 16510 175723 22446 1640873 706435 402001 105 41307 3000
Change -33.83 Market cap 105,387.42 mn Div Yield (%) 8.63
Last 60 days High Low 40.00 1.49 2.57 4.09 44.19 17.25 17.70 22.50 1.69 1.27
36.70 0.92 1.34 2.35 39.55 12.10 13.76 17.11 1.00 0.36
% Change -2.53 5-Day High 1,362.37 5-Day Low 1,305.97
2010 Div BR (%) (%) 50 50 20 -
Open 882.27 Turnover 256 P/E (x) 5.22
-
Paid up Cap(mn)
Company Sui North Gas Sui South Gas
High Low 1,163.02 1,127.89 Total cos Defaulter cos 2 P/BV (x) ROE (%) 0.84 11.41
Close 1,143.50 Listed cap 12,202.80 mn Payout (%) 66.79
PE
Open
High
Low
Close Chg
Volume
Last 60 days High Low
5491 12.25 8390 4.28
17.79 19.03
17.70 19.00
16.80 18.80
17.15 -0.64 18.94 -0.09
39458 26550
23.60 23.75
16.80 18.50
% Change -2.00 5-Day High 1,242.77 5-Day Low 1,143.50
2010 Div BR (%) (%) 20 15
2011 Div BR (%) (%)
25B
-
-
BANKS Performance of SR Banks Index Open 1,025.83 Turnover 14,263,517 P/E (x) 6.52 Paid up Cap(mn)
Company
PE
Open
Allied Bank Ltd.SPOT 8603 5.17 61.32 Askari Bank XB 7070 4.27 9.56 Bank Alfalah 13492 3.57 10.18 Bank AL-Habib 8786 5.87 27.77 Bank Of Khyber 5004 1.86 4.10 Bank Of Punjab 5288 5.66 BankIslami Pak 5280 8.78 3.25 Faysal Bank 7327 4.32 9.55 Habib Bank Ltd 11021 7.16 116.99 Habib Metropolitan Bank XB 10478 4.91 17.46 JS Bank Ltd 8150 36.00 1.89 KASB Bank Ltd XR 9509 1.20 MCB Bank Ltd 8362 6.57 174.76 Meezan Bank XB 8030 5.38 19.23 National Bank 16818 3.46 46.31 Network Mic Bank 300 2.20 NIB Bank 40437 1.35 Samba Bank 14335 18.75 1.65 Silkbank Ltd 26716 12.38 2.08 Soneri Bank 8026 2.04 4.00 Stand Chart Bank 38716 5.82 7.89 Summit Bank Ltd 8701 2.87 United Bank Ltd 12242 5.03 56.59
High
High Low Close 1,020.12 983.23 993.62 Total cos Defaulter cos Listed cap 27 - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 0.91 13.94 40.49 Low
Close Chg
Volume
62.00 59.00 61.30 -0.02 9.71 9.11 9.40 -0.16 10.15 9.52 10.06 -0.12 27.95 27.25 27.70 -0.07 4.99 3.75 4.16 0.06 5.55 5.25 5.44 -0.22 3.54 3.22 3.25 0.00 9.70 9.00 9.34 -0.21 116.00 114.00 114.57 -2.42 17.44 17.07 17.07 -0.39 1.90 1.71 1.80 -0.09 1.30 1.15 1.23 0.03 172.00 166.03 166.03 -8.73 19.40 18.50 18.51 -0.72 44.90 44.00 44.00 -2.31 2.95 2.95 2.95 0.75 1.38 1.31 1.34 -0.01 1.64 1.41 1.50 -0.15 2.05 1.90 1.98 -0.10 4.14 3.67 4.08 0.08 7.22 7.22 7.22 -0.67 2.85 2.55 2.71 -0.16 57.45 56.00 56.29 -0.30
Change -32.21 Market cap 600,805.73 mn Div Yield (%) 6.21
Last 60 days High Low
104879 68.99 487887 12.35 3990689 10.96 161622 29.75 21078 5.82 1138962 7.35 71591 4.09 228496 10.73 38200 122.99 46478 22.45 27227 3.00 32396 1.77 1936303 210.95 35161 19.84 3983698 55.80 7500 3.50 488173 1.89 150999 2.18 914403 3.06 115800 6.69 500 9.20 42223 4.75 281475 65.01
59.00 9.11 9.15 27.25 3.50 5.00 3.08 8.60 114.00 16.33 1.50 1.10 166.03 16.60 44.00 1.65 1.25 1.41 1.72 3.65 7.10 2.55 54.00
% Change -3.14 5-Day High 1,067.96 5-Day Low 993.62
2010 Div BR (%) (%)
NON LIFE INSURANCE Performance of SR Non Life Insurance Index Open 644.64 Turnover 670,564 P/E (x) 9.01 Paid up Cap(mn)
Company
Adamjee Insurance XD
1237
PE 5.03
Open 49.17
High 48.50
High Low 644.80 619.66 Total cos Defaulter cos 34 22 P/BV (x) ROE (%) 0.47 5.20 Low 46.72
Close Chg 46.91 -2.26
Close 634.90 Listed cap 11,111.34 mn Payout (%) 79.54
Volume 137013
Change -9.75 Market cap 41,564.43 mn Div Yield (%) 8.82
Last 60 days High Low 69.90
46.72
% Change -1.51 5-Day High 668.78 5-Day Low 634.90
2010 Div BR (%) (%) 25
2011 Div BR (%) (%)
-
-
-
29.68 75.00 8.85 39.65 11.89 76.12 18.30 8.99 9.50 6.00 2.24
26.35 48.85 6.74 29.05 10.00 67.00 12.61 6.67 6.50 4.15 1.50
40 20B 25 50B 10 12.5 25 12.5B 30 55B 10.00 30 25 - 12.5B - 24B -
-
High Low 909.73 885.81 Total cos Defaulter cos 4 P/BV (x) ROE (%) 1.99 3.85
Close 882.27 Listed cap 2,290.72 mn Payout (%) 355.53
Change 0.00 Market cap 9,804.70 mn Div Yield (%) 6.87
High
Low
Close Chg
Volume
Last 60 days High Low
850
9.14
65.08
68.33
65.50
65.08 0.00
256
73.25
EFU Life Assurance
Paid up Cap(mn)
Company
PE
225
Arif Habib Corp Escorts Bank
Open
3.05 -
First Credit & Invest Bank Ltd 650
Low
Close Chg
57.35
2010 Div BR (%) (%) 50
-
Last 60 days High Low
Volume
% Change -3.66 5-Day High 267.59 5-Day Low 228.52
2010 Div BR (%) (%)
2011 Div BR (%) (%)
100 100
0.00
100
GUSM
7.00
6.00
6.00
7.00
0.00
GRAYS
76
39.76
39.77
39.77
39.76
0.00
GENP
0.46
0.40
0.32
0.46
0.00
59
KSBP
31.65
31.75
30.07
31.65
0.00
58
874.91
SIEM
911.00
-36.09
52
64.64
61.50
61.50
64.64
0.00
50
4020.00
3845.00
3916.30
-80.84
41
SING
14.78
13.80
13.80
14.78
0.00
36
ELSM
23.95
23.00
23.00
23.95
0.00
32
SCLL
2.10
2.74
1.65
2.10
0.00
11.65
955.00
870.00
64
3997.14
SALT
12.65
11.00
11.65
27
0.00
26
DEL
0.80
1.40
1.30
0.80
0.00
21
BIFO
52.93
51.06
51.00
52.93
0.00
20
PAKD
29.00
28.00
28.00
29.00
0.00
20
TSMF
1.00
1.38
0.86
1.00
0.00
16
GATI
51.43
49.12
49.12
51.43
0.00
15
ADAMS
4.90
5.18
3.90
4.90
0.00
15
17.25
16.30
16.30
17.25
0.00
13 10
PAKMI
1.00
1.10
1.10
1.00
0.00
MUKT
0.47
0.58
0.57
0.47
0.00
RMPL
2701.68
2725.00
2600.00
2701.68
9
0.00
7
2.90
3.35
2.02
2.90
0.00
49.62
50.00
50.00
49.62
0.00
6
DWAE
1.00
1.45
1.10
1.00
0.00
6
BGL
1.49
1.69
1.69
1.49
0.00
5
DMTM
6
3.25
3.99
3.99
3.25
0.00
5
HINO
105.71
103.42
100.43
103.42
-2.29
5
SHEZ
121.00
118.00
118.00
121.00
0.00
5
1.30
1.50
0.76
1.30
0.00
3
COLG
702.36
737.47
737.47
702.36
0.00
2
CSMD
10.50
11.22
11.22
10.50
0.00
2
FEM
1.01
1.28
1.28
1.01
0.00
2
FNEL
2.00
1.56
1.56
2.00
0.00
2
FRCL
1.60
1.50
1.50
1.60
0.00
2
CWSM
-
-
-
GRYL
3.00
4.00
2.00
3.00
0.00
19.60 14.43
19.00 14.40
19.00 13.43
19.00 -0.60 13.43 -1.00
100000 52282
23.15 20.20
18.00 13.43
-
20B 20B
-
-
NJICL
58.69
55.95
55.95
58.69
0.00
2
OLTM
0.43
0.60
0.41
0.43
0.00
2
23.25 2.00
22.79 1.35
22.79 -1.19 2.00 -0.20
2558179 80000
29.24 2.43
20.80 1.30
30 -
-
-
-
SMTM
4.26
3.80
3.80
4.26
0.00
2 2
0.38
0.40
0.35
0.39 0.01
29000
0.64
0.25
-
STPL
8.04
8.74
7.35
8.04
0.00
1607.60
1682.00
1528.00
1607.60
0.00
2
54.92
57.24
57.24
54.92
0.00
1
0.50
1.44
1.44
0.50
0.00
1
57.12
54.95
54.95
57.12
0.00
1
-
5.00
5.50
4.00
4.56 -0.44
90798
6.10
4.00
-
-
-
-
FZCM
6.68 -
1.16 0.30
1.28 0.39
1.05 0.20
1.27 0.11 0.24 -0.06
1008 29074
1.99 0.74
0.90 0.20
-
-
-
-
GAMON
Ist Cap Securities Ist Dawood Bank Jah Siddiq Co
3166 626 7633
0.61 -
2.05 1.35 5.74
2.20 1.38 5.67
2.00 1.38 5.15
2.07 0.02 1.35 0.00 5.39 -0.35
9755 101 2482128
3.24 1.96 8.34
1.76 1.10 5.02
10
10B -
-
-
JDMT
-
2.17
2.17
2.01
2.06 -0.11
42916
3.38
1.91
-
JS Global Cap JS Investment
500 4.92 1000 31.92
17.11 4.14
17.84 4.14
16.21 3.81
17.11 0.00 3.83 -0.31
116 8445
22.94 6.43
16.21 3.70
50 -
-
-
-
KASB Securities Orix Leasing
1000 821
2.73
2.98 4.46
3.88 5.00
2.81 4.30
3.00 0.02 4.50 0.04
11876 38835
4.79 6.45
2.56 4.00
-
-
-
-
-
-
Pervez Ahmed Sec Sec Inv Bank Security Leasing
775 514 363
4.07 3.15 -
1.11 1.25 3.00
1.20 1.30 2.99
1.05 1.20 2.90
1.14 0.03 1.26 0.01 2.90 -0.10
162930 2000 25500
1.99 2.99 3.00
1.02 1.20 1.50
-
-
-
-
Trust Brokerage
100
-
1.25
1.50
1.50
1.25 0.00
300
3.95
1.01
-
-
-
-
2
UPFL
2121 2849
508
Vol
0.06 0.00
3.15
AGSML
Change -8.68 Market cap 11,560.18 mn Div Yield (%) 6.53
Change
5.96 254.00
3.00
BCL
Close 228.52 Listed cap 30,336.44 mn Payout (%) 99.56
Close
5.96 241.30
3.00
SSIC
-
Low
6.90 241.30
3.15
2011 Div BR (%) (%)
-
High
5.90
IGI Investment Bank Invest Bank
JOV and CO
Open 254.00
PNGRS
23.98 2.20
0.81
360 4.85 450 14.14 3750 441
High
BHAT
HUSS
Performance of SR Financial Services Index High Low 240.36 219.25 Total cos Defaulter cos 41 6 P/BV (x) ROE (%) 0.14 0.91
Symbols ALTN
% Change 0.00 5-Day High 913.28 5-Day Low 882.27
FINANCIAL SERVICES Open 237.20 Turnover 3,076,318 P/E (x) 11.48
UPTO 100 VOLUME
NESTLE
Open
GLPL
0.00
1
MWMP
0.78
0.90
0.90
0.78
0.00
1
SAZEW
22.40
11.15
23.00
10.15
23.00
10.15
22.40
11.15
0.00
1
FUTURE CONTRACTS
-
Low
Close
POL-AUG
348.05
339.89
330.65
330.90
NBP-AUG
Symbols
46.76
Open
45.40
44.43
44.43
-2.33
760500
FFBL-AUG
46.26
46.10
High
45.00
45.60
Change
-0.66
456500
Vol
ENGRO-AUG 130.58
127.25
124.06
-17.15 1135500
124.06
-6.52
436500
NML-AUG
40.32
39.50
38.31
38.42
-1.90
401000
PPL-AUG
207.88
204.00
198.60
199.08
-8.80
352500
FFC-AUG
157.33
155.45
151.85
152.49
-4.84
EQUITY INVESTMENT INSTRUMENTS
MCB-AUG
176.07
172.75
167.27
167.27
-8.80
Performance of SR Equity Investment Instruments Index
ATRL-AUG
111.64
109.50
106.06
106.30
-5.34
283500
DGKC-AUG
21.00
20.90
20.06
20.15
-0.85
178500
LUCK-AUG
72.73
71.84
70.23
71.03
-1.70
115500
2011 Div BR (%) (%)
40 10B 25.00 - 10B 20 20B -64.41R - 20B 65 10B - 20B - 33R -105.16R 115 10B 60.00 - 15B 75 25B -154.79R -63.46R - 311R 6 - 20R 50 - 15.00 -
24960 7001 1604 16617 290 81009 365795 10502 14300 205 11251
PE
Arif Habib Investments Arif Habib Limited
Change -23.34 Market cap 25,307.21 mn Div Yield (%) 9.08
-0.52 -2.57 -0.38 0.10 0.00 -0.71 -0.02 0.18 -0.01 0.00 0.11
Paid up Cap(mn)
AMZ Ventures
GAS WATER AND MULTIUTILITIES Performance of SR Gas Water and Multiutilities Index Open 1,166.84 Turnover 66,008 P/E (x) 7.36
Company
2011 Div BR (%) (%)
- 25.00 7.8R - 30.00 - 10.00 -
28.20 48.85 7.27 30.75 11.00 71.29 13.49 7.25 8.99 4.50 1.72
Performance of SR Life Insurance Index
Performance of SR Electricity Index High Low 1,343.76 1,290.41 Total cos Defaulter cos 15 1 P/BV (x) ROE (%) 1.13 9.35
28.00 48.85 6.74 29.50 10.36 70.60 12.75 7.25 8.75 4.50 1.70
LIFE INSURANCE
-
ELECTRICITY Open 1,339.80 Turnover 4,340,571 P/E (x) 12.07
28.85 53.99 7.28 30.80 11.77 73.00 13.69 7.55 9.25 4.50 1.80
Open 1,439.92 Turnover 785,765 P/E (x) 15.43 Paid up Cap(mn)
Company
PE
Open
High Low 1,458.10 1,388.63 Total cos Defaulter cos 52 11 P/BV (x) ROE (%) 0.34 2.21
High
Low
Close Chg
Close 1,413.95 Listed cap 29,771.58 mn Payout (%) 104.74
Change -25.98 Market cap 16,525.09 mn Div Yield (%) 10.55
Last 60 days High Low
Volume
% Change -1.80 5-Day High 1,498.52 5-Day Low 1,413.95
2010 Div BR (%) (%)
2011 Div BR (%) (%)
1st Fid Leasing
264
-
1.50
1.15
1.15
1.15 -0.35
504
2.00
1.05
-
-
-
AL-Noor Modaraba
210
2.55
4.00
3.99
3.00
4.00 0.00
101
4.21
3.00
5
-
-
75
1.95
5.30
5.00
5.00
5.00 -0.30
730
5.30
3.65
-
10B
-
-
B R R Guardian Mod.
780
2.29
2.50
2.49
2.07
2.20 -0.30
12504
2.90
1.41
0
-
-
-
Constellation Modaraba
65
2.66
1.25
1.27
1.25
1.25 0.00
2467
1.99
1.20
-
-
-
-
B F Modaraba
Crescent St Modaraba
-
200
3.57
0.53
0.50
0.50
0.50 -0.03
1001
0.89
0.30
1.2
-
-
-
Elite Cap Modaraba
113
3.75
3.65
2.71
2.70
2.70 -0.95
567
3.89
2.10
5
-
-
-
Golden Arrow
760
2.08
3.05
3.20
2.80
3.14 0.09
255241
3.72
2.80
17
-
-
-
H B L Modaraba
397
3.24
7.00
7.00
6.61
6.61 -0.39
24200
8.44
6.61
11
-
-
-
Habib Modaraba
1008
5.80
8.03
8.00
7.99
8.00 -0.03
356600
8.50
7.32
21
-
22
-
JS Growth Fund
3180
1.78
5.35
5.51
5.00
5.17 -0.18
6999
7.28
5.00
12.5
-
-
-
-
5.00
JS Value Fund
1186
Meezan Balanced Fund
1200
0.55
4.67
2.73
9.46
5.24
5.00
9.50
5.21 0.54
9.00
9.50 0.04
611
6.10
1709
10.40
4.36
10
8.59
15.5
-
-
-
Nat Bank Modaraba
250
3.31
5.30
5.50
4.40
4.40 -0.90
5002
6.00
4.40
10
-
-
-
Paramount Modaraba
59
6.01
11.99
11.00
11.00
11.00 -0.99
500
12.00
9.99
18
-
-
-
PICIC Energy Fund
1000
1.94
6.62
6.99
6.52
6.58 -0.04
1899
8.25
6.50
10
- 10.00
-
PICIC Growth Fund
2835
2.33
12.05
11.97
11.25
11.34 -0.71
29740
13.84
11.01
20
- 12.50
-
PICIC Inv Fund
2841
2.00
5.25
5.29
4.95
5.05 -0.20
48685
6.95
4.75
10
-
7.50
-
Prud Modaraba 1st
872
1.64
0.90
0.90
0.90
0.90 0.00
24506
1.04
0.75
3
-
-
Stand Chart Modaraba
454
5.54
9.95
10.45
9.80
10.03 0.08
5011
11.00
9.50
17
-
-
-
U D L Modaraba
264
2.11
6.75
6.15
6.15
6.15 -0.60
7160
7.49
6.15
12.5
-
7.50
-
-
335000 324000
HUBC-AUG
39.24
39.00
38.20
38.20
-1.04
45000
PTC-AUG
10.78
10.99
10.40
10.65
-0.13
12000
MTS LEVERAGE POSITION Symbol AHCL AICL AKBL ANL ATRL BAFL DGKC ENGRO FFBL FFC HUBC KAPCO LOTPTA LUCK MCB NBP NCL NETSOL NML OGDC PAKRI POL PSO PTC UBL TOTAL
Total Volume 650,457 1,506 288,467 158,850 35,100 918,000 473,243 108,833 108,750 55,700 120,000 14,375 1,655,271 2,500 9,732 666,502 500 28,000 380,190 6,600 196,260 11,500 62,780 26,930 107,500 6,087,546
Total Value 11,810,959 55,092 2,107,637 551,752 2,930,454 6,654,799 7,427,701 10,635,505 3,653,573 6,452,369 3,454,640 456,883 13,335,802 133,341 1,279,695 23,384,232 5,957 345,675 11,525,792 675,825 2,014,101 2,910,275 10,024,469 215,658 4,527,096 126,569,279
MTS Rate 21.01 21.00 20.00 20.00 20.00 20.92 17.25 18.00 18.03 21.23 18.80 20.00 21.23 20.72 19.76 20.00 19.56
BOARD MEETINGS
Pakistan Telecommunication Co Ltd
KSE 100 INDEX
Technical Outlook Technical Analysis RSI (14-day)
Brokerage House
Leverage Position
17.84
Support 1
10,909.55
MA (5-day)
11,520.41
Support 2
10,784.15
MA (10-day)
11,863.57
Resistance 1
11,282.25
MA (100-day)
12,078.11
Resistance 2
11,529.55
Arif Habib Ltd
Target Price
Recommendations
21.1
Buy
Arif Habib Ltd
23.91
Buy
AKD Securities Ltd
AKD Securities Ltd TFD Research
20.15
Positive
Leverage Position
RSI (14-day) 11.29 MTS Shares `000 26.93 MA (200-day) 11,901.09 Pivot 11,156.85 MA (10-day) 11.77 MTS Rs `000 215.66 15.51 MTS Rate KSE 100 INDEX closed down -369.25 points at 11,034.92. Volume MA (100-day) 17.21 ** NOI Rs (mn) 2.88 was 20 per cent above average and Bollinger Bands were 214 per MA (200-day) Free Float Shares (mn) 585.08 Free Float Rs (mn) 6,178.42 cent wider than normal. As far as resistance level is concern, the market will see major 1st resistance level at 11,282.25 and 2nd Target price for Dec-11 & **Net Open Interest in future market resistance level at 11,529.55, while Index will continue to find its 1st support level at 10,909.55 and 2nd support level at 10,784.15. KSE 100 INDEX is currently 7.3 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 volume flowing into and out of INDEX at a relatively equal pace. Trend forecasting oscillators are currently bearish on INDEX. Momentum oscillator is currently indicating that INDEX is currently in an oversold condition.
is currently indicating that PTC is currently in an oversold condition.
Fauji Fertiliser Co
Brokerage House
Target Price
Recommendations
Brokerage House
Buy
Arif Habib Ltd
AKD Securities Ltd
386.5
Neutral
TFD Research
TFD Research
388.3
Positive
405
Technical Analysis
Leverage Position
29.97 MTS Shares `000 11.50 352.80 MTS Rs `000 2,910.28 343.93 MTS Rate 19.76 320.17 ** NOI Rs (mn) 235.90 Free Float Shares (mn) 107.96 Free Float Rs (mn) 35,606.27 Target price for Dec-11 & **Net Open Interest in future market
Recommendations
12.2
Buy
Arif Habib Ltd
Accumulate
AKD Securities Ltd
11.75
Technical Outlook Technical Analysis 47.66 10.09 10.25 10.30 Free Float Shares (mn) 674.58
MTS Shares `000 MTS Rs `000 MTS Rate ** NOI Rs (mn) Free Float Rs (mn)
194 164.95
Buy Neutral
918.00 6,654.80 20.00 N/A 6,786.26
Target price for Dec-11 & **Net Open Interest in future market
Trend forecasting oscillators are currently bearish on BAFL.
Brokerage House
Technical Analysis
Leverage Position
RSI (14-day) MA (10-day) MA (100-day) MA (200-day)
41.42 MTS Shares `000 55.70 158.44 MTS Rs `000 6,452.37 146.23 MTS Rate 18.00 136.64 ** NOI Rs (mn) 79.01 Free Float Shares (mn) 466.49 Free Float Rs (mn) 70,845.43 Target price for Dec-11 & **Net Open Interest in future market
Target Price
Recommendations
65
Buy
64.99
Buy
Technical Analysis
Recommendations
Leverage Position
RSI (14-day) MA (10-day) MA (100-day) MA (200-day)
19.22 MTS Shares `000 666.502 50.69 MTS Rs `000 23,384.23 53.03 MTS Rate 18.80 62.93 ** NOI Rs (mn) 104.07 Free Float Shares (mn) 398.27 Free Float Rs (mn) 17,524.04 Target price for Dec-11 & **Net Open Interest in future market NBP closed down -2.31 at 44.00. Volume was 136 per cent above average and Bollinger Bands were 59 per cent wider than normal. NBP is currently 30.1 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 volume flowing into and out of NBP at a relatively equal pace. Trend forecasting oscillators are currently bearish on NBP. Momentum oscillator is currently indicating that NBP is currently in an oversold condition.
Engro Corporation
Fauji Fertiliser Bin Qasim Ltd
Recommendations
Target Price
Technical Outlook
Leverage Position
RSI (14-day) MA (10-day) MA (100-day) MA (200-day)
Brokerage House
Target Price
Recommendations
224
Buy
195.41
Buy
Hold
Arif Habib Ltd
AKD Securities Ltd
45.52
Neutral
AKD Securities Ltd
TFD Research
47.75
Neutral
TFD Research
245.95
Arif Habib Ltd
Technical Outlook
Technical Outlook RSI (14-day) MA (10-day) MA (100-day) MA (200-day)
Target Price
Brokerage House
Target Price
PTC closed down -0.01 at 10.56. Volume was 220 per cent above average BAFL closed down -0.12 at 10.06. Volume was 144 per cent above aver(trending) and Bollinger Bands were 82 per cent wider than normal. age and Bollinger Bands were 1 per cent narrower than normal. PTC is currently 38.6 per cent below its 200-day moving average and is BAFL is currently 2.3 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicato the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume out of PTC (mildly bearish). Trend forecasting oscillators are currently bearish on PTC. Momentum oscillator tors reflect volume flowing into and out of BAFL at a relatively equal pace.
Pakistan Oilfields Ltd
Arif Habib Ltd
Brokerage House
Technical Outlook Technical Analysis
National Bank of Pakistan
Bank Al-Falah Ltd
49
Technical Analysis
Leverage Position
RSI (14-day) MA (10-day) MA (100-day) MA (200-day)
46.91 MTS Shares `000 108.75 46.27 MTS Rs `000 3,653.57 42.99 MTS Rate 40.30 ** NOI Rs (mn) 42.19 Free Float Shares (mn) 326.94 Free Float Rs (mn) 14,800.51 Target price for Dec-11 & **Net Open Interest in future market
Positive
Technical Outlook
Technical Outlook
Technical Analysis RSI (14-day) MA (10-day) MA (100-day) MA (200-day)
Leverage Position
11.75 137.00 179.93 190.21
MTS Shares `000 108.833 MTS Rs `000 10,635.50 MTS Rate 17.25 ** NOI Rs (mn) 198.52 Free Float Rs (mn) 21,872.70 Target price for Dec-11 & **Net Open Interest in future market
Free Float Shares (mn) 176.98
POL closed down -16.98 at 329.80. Volume was 131 per cent above aver- FFC closed down -4.98 at 151.87. Volume was 55 per cent above average FFBL closed down -0.81 at 45.27. Volume was 9 per cent above average ENGRO closed down -6.50 at 123.59. Volume was 45 per cent above average and Bollinger Bands were 71 per cent wider than normal. and Bollinger Bands were 15 per cent narrower than normal. and Bollinger Bands were 45 per cent wider than normal. POL is currently 3.0 per cent above its 200-day moving average and is dis- FFC is currently 11.1 per cent above its 200-day moving average and is FFBL is currently 12.3 per cent above its 200-day moving average and is ENGRO is currently 35.0 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the displaying a downward trend. Volatility is extremely high when compared displaying an upward trend. Volatility is extremely high when compared to average volatility over the last 10 trading sessions. Volume indicators reflect to the average volatility over the last 10 trading sessions. Volume indica- the average volatility over the last 10 trading sessions. Volume indicators moderate flows of volume out of ENGRO (mildly bearish). Trend forecasting reflect volume flowing into and out of POL at a relatively equal pace. Trend forecasting oscillators are currently bearish on POL. Momentum oscillator tors reflect volume flowing into and out of FFC at a relatively equal pace. reflect volume flowing into and out of FFBL at a relatively equal pace. oscillators are currently bearish on ENGRO. Momentum oscillator is currently age and Bollinger Bands were 171 per cent wider than normal.
playing a downward trend. Volatility is extremely high when compared to
the average volatility over the last 10 trading sessions. Volume indicators
is currently indicating that POL is currently in an oversold condition.
Trend forecasting oscillators are currently bearish on FFC.
Trend forecasting oscillators are currently bullish on FFBL.
indicating that ENGRO is currently in an oversold condition.
Company
Date
Time
Dawood Hercules Chemicals Ltd Pak Cables Ltd ZIL Ltd Singer Pak Ltd International Industries Ltd Unilever Pak Foods Ltd Bank Al Habib Ltd Network Microfinance Bank Ltd Pakgen Power Ltd BOC Pak Ltd Pakgen Power Ltd Philip Morris (Pak) Ltd BOC Pak Ltd Oil & Gas Develop Comp Ltd Engro Corporation Ltd Soneri Bank Ltd Abbott Laboratories Pak Ltd Shell Pak Ltd General Tyre Pak Ltd Bata Pak Ltd
10-Aug 10-Aug 10-Aug 10-Aug 11-Aug 11-Aug 11-Aug 11-Aug 12-Aug 12-Aug 12-Aug 12-Aug 12-Aug 12-Aug 12-Aug 13-Aug 16-Aug 17-Aug 17-Aug 18-Aug
9:30 10:00 11:00 11:00 10:00 2:30 12:00 11:00 10:00 9:30 10:00 10:00 9:30 9:30 8:30 12:30 10:30 10:30 11:00 11:00
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 EFU Life Assurance 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 32.78 1.85 1.70 38.56 59.55 57.75 19.36 40.00 39.00 27.30 22.65 22.50 19.91 13.10 12.80 6.92 46.25 45.60 19.92 9.10 8.80 17.89 4.20 4.00 10.01 312.75 304.40 22.19 104.50 103.05 47.67 9.65 9.30 32.31 3.15 3.00 31.52 5.25 5.10 37.36 1.25 1.20 21.45 19.70 19.40 18.47 1.60 1.45 37.26 1.80 1.70 31.10 29.90 29.05 39.81 64.25 63.45 11.77 122.60 121.65 44.32 9.00 8.65 16.97 3.15 3.05 46.92 44.70 44.15 41.42 150.20 148.60 33.66 113.70 112.85 42.16 37.55 37.05 14.61 129.50 125.80 30.82 196.55 192.30 28.67 2.00 1.90 38.55 1.00 0.95 24.08 1.70 1.60 44.21 5.15 4.90 18.75 38.95 38.25 39.09 1.65 1.50 15.06 9.85 9.65 44.05 70.20 69.60 19.57 164.05 162.05 35.05 1.70 1.65 19.23 43.70 43.40 12.17 14.80 14.10 12.06 15.15 14.85 35.59 1.30 1.25 35.62 2.55 2.50 13.87 37.80 37.35 20.19 128.15 126.50 28.65 1.55 1.45 30.07 1.05 1.00 25.81 1.55 1.45 24.80 3.50 3.15 29.98 326.35 322.85 33.86 195.65 192.85 52.48 62.95 61.10 10.34 203.10 200.55 11.31 10.10 9.60 29.06 197.75 193.40 16.13 16.75 16.30 19.26 13.50 12.95 23.22 18.80 18.70 39.96 1.10 0.95 22.67 1.80 1.75 29.20 55.70 55.15 25.80 1.35 1.30
1st
2nd
Resistance 2.30 2.60 62.55 63.75 42.50 44.00 23.10 23.40 14.05 14.70 48.05 49.15 9.70 10.00 4.55 4.75 334.75 348.35 108.20 110.45 10.30 10.55 3.45 3.65 5.55 5.70 1.35 1.40 20.55 21.10 1.85 2.00 2.10 2.20 31.20 31.65 67.10 69.15 125.55 127.45 9.70 10.05 3.45 3.60 45.90 46.50 154.30 156.70 115.70 116.85 38.65 39.35 137.40 141.60 204.55 208.30 2.15 2.25 1.10 1.15 1.90 2.00 5.65 5.90 40.90 42.15 1.95 2.05 10.30 10.60 71.70 72.60 170.00 174.00 1.80 1.85 44.60 45.20 16.20 16.80 16.00 16.60 1.40 1.45 2.70 2.80 39.00 39.75 132.70 135.60 1.70 1.75 1.20 1.30 1.85 2.00 4.20 4.55 336.35 342.95 202.60 206.75 65.85 66.90 209.60 213.55 11.00 11.45 210.75 219.40 17.65 18.10 14.45 14.95 19.00 19.10 1.50 1.70 1.90 1.95 57.15 58.05 1.50 1.60
Pivot 2.15 60.75 41.50 22.95 13.75 47.40 9.40 4.40 326.35 106.75 9.90 3.35 5.40 1.30 20.25 1.75 1.95 30.35 66.30 124.55 9.35 3.35 45.30 152.65 114.85 38.20 133.70 200.30 2.10 1.05 1.80 5.40 40.20 1.80 10.15 71.10 168.00 1.75 44.30 15.45 15.75 1.35 2.65 38.55 131.05 1.60 1.15 1.70 3.85 332.90 199.80 64.00 207.05 10.55 206.40 17.20 13.95 18.90 1.35 1.85 56.60 1.45
8
Wednesday, August 10, 2011
HEC Sponsored Programme Concludes
BAHAWALPUR: Prime Minster Syed Yousuf Raza Gilani giving away certificates among the students who participate in training programme organized by PSEB at Circuit House. -APP
Education institutes to reopen tomorrow ISLAMABAD: All the educational institutes working under Federal Directorate of Education (FDE) will reopen from August 11 after over two months long summer vacations. The students and teachers who have moved to their hometowns during vacations will now have to return and join institutes. The vacations were started from June 1 and will end on August 10 and the students will join the institutes from August 11, an official of FDE said while talking to APP. The parents and teachers were demanding extension in vacations till Eid-ul-Fitr so that they can observe fasting and celebrate Eid in befitting manner but the extension was not given due to upcoming Independence Day celebrations and covering of syllabus in time, the official said. FDE with the collaborative efforts of Capital Administration and Development Division (CA&DD) has planned to arrange a grand function in Convention Center to mark the day and the students and teachers of all the FDE run institutes will attend the event, the official said. -APP
New admission policy promises merit: PU VC LAHORE: New admission policy of the Punjab University for the year 2011-12 promises merit based transparent admissions to all faculties especially with no increase in tuition fee besides eliminating nepotism and favouritism. Vice Chancellor, PU University, Dr Mujahid Kamran in an interview with APP said a record number of new teaching departments, new programs at master's level and disciplines at bachelor's level had successfully been introduced where nearly 30,000 students in morning, afternoon and evening sessions will be admitted strictly in accordance with the criteria laid down in the admission policy. He said a high powered 30-member admission committee headed by Prof Dr Amin Athar had been reconstituted to monitor overall process of admissions. The Punjab University, the oldest seat of learning, has emerged as one of the best public universities having maximum number of faculties and disciplines with the lowest fee for postgraduate and undergraduate courses. He said, "we restructured several faculties of various teaching departments, raised new constituent colleges, inducted teachers on merit and colleges were affiliated. The number of students increased manifolds with the highest ever strength in the country. Mujahid Kamran said despite high
standard of education the PU charged the lowest semester fee not only in the country but also in the world, ranging from Rs 3,265 to Rs 8,987 for postgraduate programs even much less than the majority of schools operating in the city. The total member of faculties and students at PU in all teaching disciplines was also higher than all other universities across the country. He said science students of PU always competed with foreign students in certain areas of specialization. Mujahid Kamran said decades-old syllabi and courses were being revised periodically and updated to meet future challenges. He said not a single student was admitted out of merit during his tenure. "The Punjab University has a unique privilege to be the only educational institution in the country that is imparting knowledge to students in all disciplines ranging from social science, humanities, science, computer, law and foreign languages, including Hindi and French". About the PU library headed by Chaudhry Muhammad Hanif, he aid that the facility of the most modern largest library in the country equipped with the latest books, magazines, internet and computerised catalogue was also available to research scholars, teachers and students for study and research on line. -APP
KARACHI: The 24-day Professional Competency Enhancement Program for Teachers (PCEPT), an intensive training program, organized by Dow University in collaboration with Higher Education Commission (HEC), concluded on Tuesday. More than 30 faculty members from different constituent institutions of DUHS participated in the Program. Vice Chancellor-DUHS, Prof. Masood Hameed Khan on the occasion said HEC's teachers training program will fulfill the demand of qualified teachers in Pakistan. HEC is working very hard to build the skills of higher education teachers for the betterment of the education level in the universities of Pakistan, he said. Prof Masood Hameed Khan also highlighted the importance of such exercises for the enhancement of teaching competencies of university teachers. He suggested HEC to have this course online e.g. hybrid, distanced and contact hours learning course for the benefit of University teachers and saving their time. He congratulated the course participants for successful completion of the course. Dr Rana Qamar Masood, Professor of Medicine-DUHS and Course Coordinator gave a brief overview of the Program. She said that it covered various aspects of professional competency development. Dr Rana said that a pool of highly experienced resource persons was invited for conducting this program. She appreciated that participants demonstrated a high level of interest and enthusiasm throughout the course. Earlier, the participants sharing their views said that the course helped them realize their standing in comparison with the prevailing standards and gave them an opportunity to learn from the expert resource persons. Prof Masood Hameed Khan distributed certificate to the participants of the program. -APP
Education dept to monitor public sector colleges LAHORE: The Punjab Higher Education Department has adopted a comprehensive monitoring policy and stringent measures to ensure smooth functioning of public sector colleges as well as pursuance of the academic calendar 201112 across the province. Director of Education (Colleges) Lahore Division Rana Naseem Ahmed, while talking to APP here, said that the measures were meant to ensure regularity and punctuality of professors and other staff, maximum attendance of students in the classroom, cleanliness of the campus, conduct of year according to the academic calendar of the Higher Education Department and enhancement of overall administration of colleges. Dilating on steps introduced in the public sector colleges of Lahore Division on the instructions of the Secretary Higher Education Haseeb Athar during the previous academic year,
Rana Naseem said all principals were directed to hold one monthly meeting with their respective staff on the first Tuesday of every month according to the schedule and communicate minutes of the meeting to the directorate. He said meetings helped diagnose problems and find solutions regarding punctuality of staff, especially habitual late comers. The director (colleges) Lahore said that monitoring and evaluation committees, comprising vice principals, dean of sciences and arts, had been introduced in public sector colleges to monitor overall class work and environment of colleges. He said the monitoring teams helped a great deal in checking attendance of staff as well as students. "Explanation letters issued to guilty officials ensured better performance of duties", he added. The director (colleges) said scheduled and surprise visits were also
made to all colleges which helped the education department achieve the goal of full attendance of students in colleges till the end of March as professors were directed to maintain attendance registers of students, adding that students stopped coming to colleges by the end of January in previous years. He said that principals were also asked to ensure complete implementation of lesson plans and other activities according to the academic calendar. The surprise visits also discouraged absenteeism in colleges as absent professors were taken to task which ensured regularity among teaching as well as non-teaching staff of colleges. The director (colleges) Lahore said he was holding regular meetings with principals of public sector colleges, expressing the resolve that the measures adopted by the higher education department would yield better results. -APP
HEC Oks business incubation centres LAHORE: The Higher Education Commission (HEC) has accorded approval to a proposal of University of Veterinary and Animal Sciences (UVAS) for setting up a Business Incubation Centre and released Rs6.63 million for the purpose. It will be the first centre of its kind in the provincial metropolis. This was stated by UVAS Vice Chancellor Prof Dr Muhammad Nawaz while addressing faculty meeting on "Encouraging innovative thoughts and ideas of students and brainstorming" at the syndicate room. He said that HEC would provide financial assis-
tance to share the cost and initial two-year operating cost of Rs 11,150,000. He added that the purpose of the business incubator was to produce successful firms that would leave the programme financially viable and freestanding adding that incubator graduates would have the potential to create jobs, revitalise neighborhoods, commercialization new technologies, and strengthen local and national economies. There are so many potential untapped areas which are being discovered and exploited to enhance the country's economic might
and make the university self sufficient, added Dr Nawaz. UVAS Vice Chancellor Prof Dr Muhammad Nawaz stated that Pakistan can save annually $6 billion on imports of poultry vaccine due to biotechnology products. He said that 21 million low milk producing cattle and buffaloes should be preferably slaughtered to export meat and earn substitutional foreign exchange to pay back the debt. He said that the vision of the university was to produce skilled manpower for milk, meat and eggs and for making biological products. -APP
Education With a Purpose Shabbir Kazmi
E
ven when an individual starts any work he has a very clear plan in his mind, what he intends to do, why he wants to do a specific thing, how the job will be executed, what sorts of skills are needed and above all how much money be required to accomplish the job. Pakistan inherited an education system which was perfect foe the British Raj as it wanted to give masses limited awareness but certainly wanted to develop 'most obedient servants' who could help in protecting the interest of the Raj. Therefore, it created two distinct education systems one for the elites and other for the commoners. Mean time non-conformist like Deputy Nazeer Ahmed and Sir Syed Ahmed Khan initiated the projects which
slowly but gradually brought a change in the mind set of people. The biggest contribution of Deputy Nazeer Ahmed was convincing the male-dominated society to impart education to the girls, future mothers and the up-bringers of the future generations. Though some of the books written by him may look 'too novice' an approached to the modern educators, but all his writings were purposed-based and bringing a change in the mindset of parents as well as mothers, sisters, wives and daughters. One may not know that he was given a mandate by the British Raj to write small and simple books which could help the 'ruling elites to understand Urdu, the most common conversational language of the subcontinent. As Against this Sir Syed Ahmed Khan came up with multipronged strategy that included, educating the masses and teaching them English, the language spoken by the rulers. The purpose was simple to make Muslim a participant in the establishment as well the emerging political system. His efforts were looked down by those who had the vested interest but he succeeded in building Aligarh University, which is still rated among the best universities of
the world. One of the contributions of the Aligarians is Sir Syed University of Engineering and Technology operating in Karachi. Many other educational institutions established in this part of the world are discharging their duty diligently. Though, the Government of Pakistan succeeded in establishing thousands of primary schools, hundreds of colleges, dozens of universities, both in the public and private sector but the basic purpose of education has not been achieved. There are pela schools, private schools and madarsas, each following it sown curriculum and set of text books. Medium of instruction followed include English, Urdu and regional languages. The ultimate outcome is that students passing from these institutions have completely different mindset and level of knowledge but all suffer from a common syndrome, they have the certificates and degrees which can't help them in seeking a decent job. One of the prime reasons for the prevailing mess in education is nationalization of educational institutions. These institutions could not be managed efficiently because the successive governments could make paltry allocations for education. The
federal outlay for education is around 3 per cent of the total and it is also on record that bulk of this goes towards administrative expenses rather than salaries and other benefits for the teaching staff, upgrading of the facilities i.e. laboratories and library and purchase of computers. Normally, a teacher gets salary which is often less than the wages of semi and skilled worker. Most of the teachers of primary and secondary schools get salary which is far less than the minimum wage fixed by the government for the worker. That is why in certain parts of this country people still ask a teacher didn't you get a job, you are still teaching children? This means that only those join the teaching profession who couldn't find any other job. The second contentious issue is curriculum. Many of the subjects and topics taught have no relevance with harsh realities of today. The issue may not look serious at primary or secondary school levels but becomes very acute at graduate and post graduate levels. In a nutshell whatever they learn becomes totally irrelevant when they enter the job markets. All the employers want specific expertise, which many of
the graduates have never been exposed to during education. At present if any one wish to join accounts department minimum requirement may be B. Com but he/she must know how to work on spreadsheet or Excel. Gone are the days which senior executives were given stenographers. Now they are given a desktop or laptop computer and unless they have command on some of the software they could not do daily chores. Now almost all the offices have 'local area networks' as use of worldwide Web is also common. With knowledge of Internet communication with branch office, customers, suppliers and contractors is almost impossible. Till yesteryear, people used to talk about 'information technology' but now retrieving, storing and managing information available on thousands of portals has become the biggest challenge. Therefore, if we want to accelerate economic growth of Pakistan, we have to equip the upcoming generations with the latest tools. This is specialization era and it is difficult to maintain excellence in one's own field. This requires regular refresher courses for the teachers. As a nation we have to focus on
training of the trainers. Productivity of crops can only be improved when farmers know which areas are suitable for the specific crops, what are nutrient requirements of various crops and how to protect them from pest and virus attacks? Productivity of manufacturing units can be improved by operating them at optimum capacity utilization. Productivity of workers can only be improved by providing hem vocational training in concerned fields. The right combination man, machinery and material improve competitiveness but the best combination can only be achieved by exploiting comparative advantage. Once upon a time Pakistan enjoyed the advantage of abundance of locally produced quality cotton. However, production of blended yarn, focusing on broad width cloth and use of latest cutting and stitching machines have taken our competitors and even those countries which do not produce a gram of cotton far ahead on us. Only those nations progress which adapt the change emerge stronger. How can Pakistan progress if its people remain illiterate and don't learn the contemporary technologies and apply them in daily life?
9
Wednesday, August 10, 2011
Oil seesaws in volatile trade, eyes Fed policy
l
OPEC lowers demand rise view for 2011, 2012
NEW YORK: Oil was slightly higher on Tuesday in seesaw trading, plunging early and then bouncing up when battered US stocks pushed higher as financial markets awaited a Federal Reserve policy statement. US stocks rose more than 1 per cent in early trade a day after Wall Street took a nose dive, but i n v e s t o r s remained wary of another reverse if the Federal Reserve's message after it soneday meeting fails to reveal a plan to combat the melt down linked to fears that the economy is going back into recession. A statement from Fed policymakers is due at around 1815 GMT. The US central bank is
not expected to debut any massive new program to help asset prices, but riskier assets like oil and equities got a lift from hopes the Fed may indicate some plan to bolster a slow economy. "They may hint that they will ease monetary policy or do something that approaches
QE3 (quantitative easing 3), and that's lifting stocks and crude," Simon Wardell, analyst at Global Insight said. ICE Brent crude for September rose 32 cents to $104.06 a barrel by 1509 GMT
having bounced as high as $105.95 after earlier falling $5 to $98.74, the lowest intraday price since Feb 8. US September crude rose 30 cents to $81.61 a barrel, having bounced as high as $83.05 after earlier falling to$75.71, the lowest since prices fell intraday to $75.60 on Sept. 29, 2010. Amid the v o l a t i l i t y, Brent crude's premium to US crude rose to $23.79, surpassing the previous record of $23.57 reached July 14. Trading volumes were strong, with Brent volumes above its 30-day average as both Brent and US crude neared half million lots traded. -Reuters
JAKARTA - INDONESIA: Farmers shake unhusked rice during a harvest in the Bekasi district on the outskirts of Jakarta. -Reuters
NY cotton end sharply off as downgrade fears rule NEW YORK: Cotton futures closed sharply lower Monday on investor sales as the selling spree sparked by the US credit downgrade pulled fiber contracts down and will likely depress values this week, analysts said. The key December cotton futures on ICE Futures US dropped 3.86 cents or by 3.8 per cent to finish at 97.72 cents per lb, dealing from 97.58 cents to $1.015. Total volume traded stood over 14,000 lots, less than half
a per cent above the 30-day norm, Thomson Reuters preliminary data showed. "I think the gravity of all this is pounding the weaker markets and this includes cotton," said Jobe Moss, an analyst for merchants and brokers MCM Inc. in Lubbock, Texas. Independent analyst Mike Stevens of Louisiana said automatic sell orders were touched off as fiber contracts tumbled. Fundamentally, the market has priced in a severe drought in Texas and other US
cotton growing regions. But the dominant factor is the weak global economic outlook and how another economic downturn could further depress cotton demand and push prices lower, dealers said. Total volume traded Friday hit 15,021 lots, about a quarter below the 30-day average, ICE Futures US and Thomson Reuters data showed. Open interest was at 143,489 lots on Friday, exchange figures showed. -Reuters
Gold set to widen premium over platinum
l
Longer-term platinum fundamentals positive, but overshadowed
LONDON: Gold is set to widen its premium over platinum after hitting parity for the first time in 2-1/2 years this week, with no end yet in sight to the potent cocktail of fear factors that are benefiting safe havens at the expense of cyclical assets. Gold prices rose above those of platinum for the first time since December 2008 late on Monday. The last time this happened, the situation reversed within a few days, and traders said then that the convergence of the gold-platinum ratio gave a clear signal to sell gold and buy platinum. Today's backdrop is very different. "Gold as a defensive asset is being driven higher at the moment by risk aversion, and platinum as a cyclical asset is under pressure because growth is slowing," said Michael Widmer, an analyst at Bank of America-Merrill Lynch. "We were there around the great recession (2008), and then you had the various stimulus packages hitting the market, and you saw the prices of the two metals starting to diverge again," he said. "The macro picture is a bit different this time around. I don't think that it is a compelling trade." In contrast to the situation in 2008, gold's premium to platinum is a function of its own strength, rather than a falling platinum price. Gold hit a record $1,778.29 an ounce this week as concerns
over economic stability and debt crises in the euro-zone and United States sparked heavy buying among investors. Platinum prices have eased by just over 2 per cent this year, although they have not dropped in the same way as some industrial metals such as copper, which is down 8.2 per cent in electronic trading, or zinc down 13.2 per cent. Although platinum is nominally a precious metal, the bulk of its demand comes from the industrial sector, particularly carmakers who use it to make catalytic converters. This makes it more sensitive to threats to growth. This may mean it still has some way to fall, potentially further widening its discount to gold, analysts said. In 2008, platinum plummeted from record highs to fall below the price of gold, said Deutsche Bank analyst Michael Lewis. "Now ... this parity has occurred and we haven't priced in that recession risk yet," he said. "There is more risk that if we get negative data, it could sustain that discount of platinum for a longer period of time." A short-term reversal in the ratio is possible. The current rush for safety sparked by Standard & Poor's decision to downgrade the US credit rating on Friday has sparked a 6.3 per cent rally in gold prices in the past two days alone, their biggest two-day rise since 2008. That kind of jump has typi-
cally been followed by a correction, as was seen in late April after gold's initial break above $1,500 an ounce. At the same time, there are some factors that could suggest a short-term rise in platinum prices as the threat of strike action among miners in South Africa, the source of four out of five ounces of the world's platinum supply, continues to loom. In the longer term, gold prices will undoubtedly correct at some point, with a rise in US interest rates expected to be the turning point in the yellow metal's decade-long rally. Meanwhile, platinum's underlying supply fundamentals still point to higher prices as South Africa's mining sector faces stronger cost pressures from an increased focus on safety, rising inflation and higher wage demands. This should give long-term support to the metal. But in the current environment, few are looking that far out. "On a historical basis, the ratio looks cheap, but that is not necessarily reason to buy," UBS analyst Edel Tully said in a research note. "If we were prepared to buy the ratio now and hold it for a year or two, it would probably be a good trade, given that platinum's fundamentals signal a lot more tightness over the medium term. But as investors struggle to make money in the short term, positioning for the medium term is in short supply." -Reuters
Sugar rallies after losses, coffee firms LONDON: ICE sugar futures rallied 5 per cent in a technical correction from previous losses and arabica coffee gained on trade buying on Tuesday, while cocoa firmed despite concerns over risks of a global recession. ICE October raw sugar futures bounced sharply higher after early losses, fuelled by a weaker dollar, and were around 12 per cent off a contract high of 31.68 cents a lb touched last month. Dealers said expectations of big northern hemisphere crops in the fourth quarter of 2011 would limit upside in prices. October raw sugar on ICE was up 1.1 cent or 4 per cent at 28.07 cents a lb at 1421 GMT. Thailand, the world's secondbiggest sugar exporter, is expected to produce at least 9.2 million tonnes of the sweetener in the current 2011/12 crop, a senior official at the Office of Cane and Sugar Board (OCSB) said on Tuesday. October white sugar on Liffe was up $31.50 or 4.4 per cent to $742.00 per tonne in slim volume of 2,021 lots. Arabica coffee futures on ICE firmed, supported by commercial buying and tight supplies. Damage from a frost that swept over Brazil's southeastern coffee belt last Friday startling the market, was expected to have a small impact on next year's harvest, three cooperatives in the region said on Monday. December arabica coffee on ICE rose 3.3 cent or 1.4 per cent to $2.4125 per lb. September robusta coffee on Liffe traded up $56 or 2.7 per cent to $2,106 per tonne in modest volume of 4,993 lots. Coffee trading in Vietnam has been frozen due to high prices and thin stocks and the world's second-largest producer after Brazil could see shipment in calendar 2011 drop more than 5 per cent, traders and an industry group said on Tuesday. Cocoa futures on ICE firmed on trade buying, consolidating above a nine-week low touched on Friday, as a large 2010/11 crop kept prices under downward pressure. December cocoa on ICE was up $10 or 0.3 per cent at $2,955 a tonne in low turnover of 5,861 lots. A record 2010/11 global cocoa surplus limited upside in prices, dealers said. Liffe September cocoa traded up 8 pounds or 0.4 per cent at 1,858 pounds a tonne in light turnover of 3,665 lots. -Reuters
Indian sugar rises on short-covering MUMBAI: India's sugar futures jumped more than 1.5 per cent on Tuesday on shortcovering and bullish sentiment after festive season demand buoyed spot prices that had fallen nearly 2 per cent since the beginning of the month, analysts said. The most active August sugar on the National Commodity and Derivatives Exchange ended up 1.87 per cent at 2,662 rupees per 100 kg. The contract had fallen nearly 7 per cent in last one month. In Kolhapur, a key market in top producer Maharashtra, the most traded S-variety rose 18 rupees to 2,616 Indian rupees ($58.172) per 100 kg. "Sugar prices fell sharply in both futures and spot market and now some lower-level buying was witnessed in the spot," said Mukesh Kuwadia, secretary Bombay Sugar Merchants Association. There were reports indicating that the government is likely to take some decision on sugar decontrol and that lifted the sentiment, Kuwadia said. India has made available 1.703 million tonnes of nonlevy sugar quota for August, higher than 1.56 million tonnes it had released for the previous month, the consumer affairs ministry said in a statement on Aug 1. India should churn out 24.2 million tonnes in the current 2010/11 season and output may jump to 26.5 million tonnes in 2011/12, higher than the country's estimated consumption of around 22 million tonnes, according to industry players. -Reuters
Copper slips but off 8-month low, economy fears linger LONDON: Copper prices closed lower but above eightmonth lows on Tuesday, with traders pointing to consumer buying after sharp falls earlier, although unease about the US economy trimmed gains and focused attention on a meeting of the Federal Reserve and its ability to soothe fears ofa recession. Benchmark copper on the London Metal Exchange closed at $8,730, from finish at $8,870 on Monday. The metal used in power and construction rebounded from an earlier $8,446.25, its lowest since early December 2010. Traders said consumers had stepped into the market to exploit bargain prices following hefty falls but buying was limited. Members of the policy-setting Federal Open Market Committee (FOMC)started a meeting at 1200 GMT and are expected to deliver a policy statement around 1815 GMT. The Fed's policy toolkit looks rather depleted, making some question the likely effectiveness of any further monetary stimulus. Volume traded on copper was at around 32,000 lots, after a hefty 38,000 on Monday and more than 39,000 lots on Friday, the highest level for the year sofar. Copper has shed around 10 per cent so far this month. "For the bulls, it was the dip everyone has been waiting for. Chinese buyers were noted around the market below $8,500 where most of the volume traded," RBC Capital Markets said in a research note.
Bhar noted base metals' resilience in withstanding bigger declines in other financial markets in past weeks due to wrangling in Washington over the debt ceiling and the eurozone debt crisis. China's refined copper production hit a record 478,000 tones in July,breaking the previous record of 477,000 tones in June, data from the National Bureau of Statistics showed on Tuesday. Primary aluminium production fell 2.7 per cent on the month, but output still rose 13.2 per cent from a year ago due to increased capacity. The country's consumer price inflation quickened to 6.5 per cent in July from June's 6.4 per cent, the National Bureau of Statistics said on Tuesday, topping market forecasts for a reading of 6.3 per cent. Latest data shows aluminium stocks in LME-monitored warehouses fell by 9,950tones, with no inflows and continued drawdowns in East Asia, as well as the United States. Aluminium closed at $2,407 a tone from Monday's close of $2,386. Aluminium has been underpinned by expectations power cuts in China will crimp domestic supply and it may have to buy on the international market. Tin closed at $22,775 from Monday's close of $22,505, as the metal rebounded from lows of September 2010 hit in the previous session. Zinc ended at $2,100 from $2,091, nickel at $21,205 from$21,250, and lead at $2,254 from $2,205. -Reuters
Tokyo rubber falls on recession fears BANGKOK: Tokyo rubber futures tumbled 6 per cent to the lowest in a month on Tuesday, tracking falls in commodities and share prices due to a broad sell-off amid growing fears that the global economy may fall into a double-dip recession, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for January delivery fell 15 yen to settle at 355.0 yen ($4.6)per kg. It fell as much as 6 per cent to an intra-day low of 348.0 yen per kg, the lowest since June 29. The most active Shanghai rubber contract for January fell 9.5 yuan to settle at 32,785 yuan ($5,094) per tonne. "Players sold the contract heavily amid fears of falling demand due to a possible recession led by the US historic downgrade," said a Japanese trader. The United States lost its top-tier AAA credit rating from Standard & Poor's in an unprecedented blow to the world's largest economy in the wake of a political battle that took the country to the brink of default. Dealers said falling oil prices was another negative factor that added to the downward pressure on TOCOM prices. Brent crude recovered after plunging to a six-month trough below $99 a barrel on Tuesday in a two-session drop of nearly $10, after a US credit downgrade intensified fears about a global slowdown in demand for energy. -Reuters
Gold hits $1,778 in biggest 3-day rally since 2008 LONDON: Gold hit a record high on Tuesday in its biggest three-day rally since the depths of the financial crisis in 2008, as investor fears over the threat to the global economy from the European and US debt crises hit assets seen as higher risk. Though spot prices retreated from highs as stock markets opened higher in the United States, they remained up 1.4 per cent on the day at $1,739.60 an ounce at 1342 GMT, having earlier peaked at $1,778.29. "The short run uptrend is intact," said VTB Capital a n a l y s t A n d r e y Kryuchenkov. "Panic dominates for now and even though we have rebounded a bit on the broader market, people will still fear liquidating substantial gold longs." Gold has risen by about 7 per cent this month, driven by flows of cash out of equities, bonds and currencies, after the United States lost its top-notch credit rating. Investors have lost confidence in the ability of European leaders to stem the spread of the debt cri-
sis that has now engulfed the euro-zone's third- and fourthlargest economies, Italy and Spain. "The market could come off from here, but it's headed in a northerly direction," said ANZ head of metal sales Peter Hillyard earlier. "From where we are now, you might think we could see some sort of pull-back. But I'm talking about a momentary thing, a pull-back like the loading of a gun, which then fires
away." Reflecting the rush into gold, holdings of metal in exchangetraded funds rose for a twelfth day to an all-time high near 70 million ounces, equivalent about half of total supply in 2010, based on World Gold Council data. The European Central Bank bought Italian and Spanish bonds on Monday to try to stem the spread of the region's debt crisis, but in doing so found itself
locked in full-blown conflict with the German central bank. The euro took heart from the ECB's efforts, rallying 0.6 per cent against the dollar, but held near record lows against the safehaven Swiss franc. Gold priced in euros hit an alltime peak above 1,250 euros an ounce and was set for its biggest two-day rally since May 2010, when the euro-zone debt crisis first flared. Gold in sterling and yen also hit records. Gold's upward progress has attracted some profit-taking from investors who have scrambled to plug holes in their portfolio from the rout across the stock markets. However, analysts said that the current push into gold appeared to be fairly solid. Elsewhere silver fell 2.8 per cent on the day to $37.87 an ounce, pushing the gold/silver ratio to 46.0, a six-month high in the outperformance of gold versus silver. Platinum rose 1.5 per cent to $1,738 an ounce, while palladium rose 2.3 per cent to $731.47. -Reuters
Palm oil lower on weak global sentiment KUALA LUMPUR: Malaysian palm oil futures hit fresh nine-month lows on Tuesday as concerns that a global economic slowdown was imminent after the US credit downgrade continue to pressure financial markets. Asian stock markets plunged on Tuesday as investors dumped riskier assets in a global rout triggered by fears that political leaders are failing to tackle debt crises in Europeand the United States. "Palm oil is trying to find a balance when crisis in US and Europe is hitting global markets while demand-supply fundamental in Malaysia is expected to be bullish," said a trader in Kuala Lumpur. He added: "There's a tendency that end stocks in August will drop below 2 million tonnes due to weaker production as there are less workers to harvest fresh fruit during the
festival." Workers in top palm oil producing countries, Malaysia and Indonesia, are expected to take long break during the key Islamic festival of Eid Al-Fitr in early August, which will cut palm oil output and lift prices. Palm oil still lost ground, for now. The benchmark October crude palm oil contract on Bursa Malaysia Derivatives fell 1.7 per cent to 2,942 ringgit ($974.495) per tonne after hitting 2,920 ringgit -- the lowest since Oct. 20 last year. Overall traded volume rose to 15,465 lots of 25 tonnes each from the usual 12,500 lots. Traders are also on the lookout for official data of July's palm oil stocks, production and exports as well as exports data of the first ten days of this month due to released on Wednesday. Brent crude plunged to a six-
month trough below $99 a barrel in Asia hours, dragging other vegetable oils lower. US soyoil for August delivery dropped 2.3 per cent on Tuesday after soybean fell to its lowest since mid-March following a cut in US credit rating. In China, the most active May 2012 soyoil on Dalian Commodity Exchange fell 2.2 per cent, tracking weak sentiment in global markets. "China's soyoil followed overseas markets, especially crude oil," said Zhang Juan Cong, an oil analyst with Dadi Futures in China's southern city of Hangzhou. "There is room for the prices to fall further but it depends on how the US markets perform. However, weak global oilseeds supply and strong demand from China will limit losses of China's soy oil futures," he added. -Reuters
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Wednesday, August 10, 2011
Kamran disquiet over neglect in central contract LAHORE: Wicketkeeperbatsman Kamran Akmal, a surprise omission from Pakistan's latest batch of central contracts, says that he is disappointed over being left out. The 29-year-old Kamran, a veteran of 53 tests, 137 one-day internationals and 38 Twenty20s, has been replaced by his younger brother Adnan Akmal, 26, who toured New Zealand last year. Senior players Shoaib Malik and Danish Kaneria also missed out on new contracts. "I am disappointed but I just
need to keep on playing domestic cricket and prove my form to the selectors and board," Kamran said. He played in the 50-over World Cup at the start of the year but was then dropped from the test tour to West Indies in April and May due to inconsistent form behind the stumps. Kamran has made six test centuries and five hundreds in one-day internationals. In one World Cup match against New Zealand he dropped Ross Taylor twice in
India most listless team nowadays, says Akram LAHORE: Former Pakistan captain Wasim Akram has suggested that Rudra Pratap Singh should be inducted into the playing XI ahead of Sreesanth along with Ishant Sharma and Praveen Kumar. He also stated that the Indian team has looked listless on the England tour thus far. "I am happy to see RP Singh's return to the Indian team. He is a good replacement for Zaheer and is one bowler who can really trouble the English batsmen. His upright, seam-up action helps the ball slant easily and India will be tempted to play him ahead of Sreesanth," Akram wrote in his column for www.espnstar.com. "Ishant and Praveen will complete the pace troika but this duo must not lose heart when a partnership is building. Having said this, I would have loved to see Laxmipathy Balaji in England. He swings the ball well and can work up a decent pace too." The legendary pacer was critical about the Indian team's body language terming it one of the most listless teams of recent times. "I have never seen such a listless Indian side in recent times. The team has been just going through the motions and at Trent Bridge, the Indians gave the impression that they had thrown in the towel on Day 4 itself. Is this the sign of a team that's No. 1 in the Test rankings? "Drooping shoulders, sting less bowling and schoolboy-like batting have made India look like a team that has no pride. This is not the India that we wanted to see in England
Akram made no bones about the fact save veterans Rahul Dravid, VVS Laxman and to some extent Sachin Tendulkar, others have not shown any class in batting. "Tours like England actually tell you the class and depth of a team. Except for Rahul Dravid, VVS Laxman and to a small extent Sachin Tendulkar, there is not much to write home about the current squad. "I would reckon English conditions are the toughest in the world. England is more challenging than South Africa or Australia. Down Under, the wicket flattens out on the third day but in England the ball keeps seaming around," he added. "So as a batsman, you can never be at peace on English pitches. One has to play each ball on its merit. One can forget the fuller length balls. Guys like Yuvraj and Raina may be hugely talented players but till they can handle seaming conditions with flair, they can't be called complete batsmen," he added. "Too much is being made of Tendulkar scoring his 100th international century. I am sure Tendulkar himself doesn't like all the hullabaloo around it. For me, the team's success is more important. "It will be great if Tendulkar can achieve the landmark, which he will. He looked good in the second innings at Trent Bridge but ran out of partners. At Edgbaston, Tendulkar will surely like to see more conviction from the Indian middleorder." -Online
Real target Neymar hails Spanish rivals Barca MADRID: Gifted Brazilian teenager Neymar's reported December move from Santos to Real Madrid appeared in doubt Tuesday after he praised their Spanish league rivals Barcelona and insisted he is not ready to join either club. "Neither Madrid nor Barcelona interest me right now," he told Spanish sports papers in Germany on Monday when asked about his reported transfer to Madrid. "I said all I had to say and everyone knows it." Spanish sports daily Marca reported Sunday that Real Madrid had reached a preliminary deal with Santos to sign the 19-year-old striker in December, after the World Club Cup in Japan.
It said the deal would be announced this week, and Neymar would arrive in Madrid on December 20. In an interview released Tuesday on the website of football's world governing body FIFA, Neymar also declared Barcelona as "the best team in the world and they've got the world's best player in their side." If Santos meet the Spanish and European champions in the World Club Cup it will be "a very tough task". Neymar added: "I don't think there's any particular tactics you can use. We'll just have to pray, ask for God's help and give it our best shot." Another sports daily, AS, said Tuesday his "praise of Barcelona has caused concern in Madrid". -APP
India block Pakistan-born Khawaja's visa
one over from paceman Shoaib Akhtar and the batsman went on to score a match-winning hundred. Kamran said he was working hard on his technique and seeking advice from former Pakistan captains and keepers Moin Khan and Rashid Latif. Malik and Kaneria have not played for the team since the test series in England a year ago. Pakistan take on Zimbabwe in a one-off test in Bulawayo next month before the two sides contest three one-dayers and two Twenty20s. -Online
Pakistan to participate in int’l cycle race in India LAHORE: Pakistan's sixmember cycling team will participate in international cycle race in India. The 104-kilometer International Cycle Race will start from September 4 in New Delhi. According to Pakistan Cycling Federation, the announcement of the national team would be made after the trials. The open trials would be held in Lahore on August 10. The decision of participation of the national cyclists in the race would be made after issuance of an NOC by the government. -Online
Hockey camp kicks off without any coach ISLAMABAD: The training camp for the senior hockey team will begin here at Naseer Bunda Hockey Stadium on Wednesday without the coach Michel van den Heuvel. Asif Bajwa, secretary, Pakistan Hockey Federation (PHF) told APP on Tuesday that the coach would join the camp on Friday as now he is abroad. Bajwa refused to give any comment on Naveed Alam's press conference that he had held here at the National Press Club on Thursday. "I don't want to talk about any criminal activities," Bajwa said. Twenty-six probables have been directed by the Pakistan Hockey Federation to report to Khawaja Muhammad Junaid (camp commandant) at the camp. The camp is being organised in preparation for 1st Men's Asian Champions Trophy Tournament to be played in China from September 3 to 11. The probables include Muhammad Imran, Shakeel Abbasi, Syed Kashif Shah, Imran Butt, Muhammad Rizwan Junior, Waseem Ahmed, Rashid Mehmood, Fareed Ahmed, Muhammad Tousiq, Muhammad Waqas, Muhammad Khalid, Muhammad Rizwan Sr, Muhammad Zubair, Muhammad Imran Jr, Abdul Haseem Khan, Imran Shah, Waqas Akbar, Muhammad Umar Bhutta, Muhammad Irfan, Shafqat Rasool, Kashif Javed, Ali Shan, Arslan Qadir, Muhammad Irfan Junior, Mazhar Abbas and Bilal Qadir. Sohail Abbas and Rehan Butt have not included in the camp as the national selection committee has advised them to take rest. -APP
GEORGIA: Paul Casey of Britain hits his tee shot on the ninth hole during a practice round for the 93rd PGA Championship golf tournament at the Atlanta Athletic Club in Jones Creek. -Reuters
PCB urged to lift ban on Ejaz Faruqi KARACHI: The Executive Council of the Karachi City Cricket Association (KCCA) which met here on Monday in an emergent session, unanimously adopted a resolution urging the Pakistan Cricket Board (PCB) Chairman Ijaz Butt to rescind the disqualification of KCCA Secretary Prof. Ejaz Ahmed Faruqi. `The KCCA Council expressed serious reservations and disappointment over the decision of General Manager, Domestic, PCB Shafiq Ahmed's One-Man Inquiry Committee which formed the basis of disqualifi-
cations'. it said in statement issued here. The meeting was chaired by its President Syed Sirajul Islam Bokhari, who had been serving in different capacities for over three decades. The Council was of the view that the report is unjust and violates the democratic, fundamental rights of an elected office bearer of the largest cricket association of the country'. The KCCA Council expressed its indignation over the issue and had declared all the action of Prof. Ejaz Faruqi as genuine The Council was also of the
opinion that KCCA is being continuously denied of due participation in PCB affairs and is usually neglected. Now the key official of KCCA has been disqualified for holding office due to his highly vocal protest against `injustice to Sindh in general and Karachi cricketers in particular in matters for national selection'. The KCCA Executive Council has hoped that the PCB Chairman Ijaz Butt would rescind the earlier decision for disqualification of Ejaz Faruqi as Secretary KCCA as it is `unprecedented in the history of PCB'. APP
Australia set for Lanka spin assault PALLEKELE, Sri Lanka: Australia are gearing up for a Sri Lankan spin assault when the two teams clash in a fivematch one-day series starting in Pallekele on Wednesday. Tillakaratne Dilshan's home side hope to carry the momentum into the one-day matches after winning both Twenty20 internationals against Australia at the same venue over the past three days. Australia's uneasiness at facing spin was exposed on Monday when unorthodox slow bowler Ajantha Mendis grabbed 6-16, the best figures ever in international Twenty20 cricket, to fashion his team's remarkable win. The tourists, chasing Sri Lanka's 157-9, were cruising at 71-0 on the back of Shane Watson's attacking half-century before nine wickets fell for 78 runs. Dilshan said the Twenty20 wins will give his side the
advantage in the one-dayers and the three Test matches that follow. "It is good to make a winning start against a strong side like Australia and I am sure we can carry the momentum into the one-dayers," said Dilshan, who struck an unbeaten century in the first match. "The one-dayers will be a lot tougher, but I am confident we will do well." Cameron White, Australia's Twenty20 captain, who will return home this week because he is not part of either the one-day or Test squads, said a spin assault awaited the tourists. "It's going to be the same during the one-day series," said White. "It'll be hard and tough work for the batsmen against the spinners. "It's no secret. It's just going to be about who can come out on top at the end of
the series." Australia will be bolstered by the return of captain Michael Clarke and senior pros Ricky Ponting and Mike Hussey who have considerable experience when it comes to facing spin bowlers. Australia (from): Michael Clarke (capt), Shane Watson, Brad Haddin, Ricky Ponting, Michael Hussey, David Hussey, Shaun Marsh, Steven Smith, John Hastings, Mitchell Johnson, Brett Lee, Xavier Doherty, James Pattinson, Doug Bollinger. Sri Lanka (from): Tillakaratne Dilshan (capt), Angelo Mathews, Mahela Jayawardene, Kumar Sangakkara, Dinesh Chandimal, Jeevan Mendis, Lasith Malinga, Thisara Perera, Upul Tharanga, Suranga Lakmal, Ajantha Mendis, Nuwan Kulasekara, Suraj Randiv, Rangana Herath, Chamara Silva, Shaminda Eranga. -APP
SYDNEY: Pakistan-born Australian batsman Usman Khawaja on Tuesday said he was being refused a visa into India for next month's Champions League Twenty20 tournament because of his country of birth. Khawaja vented his anger on social media site Twitter, saying India's visa department "need to sort their issues out". "Refusing to let me travel to India as an Australian, because I wasn't born here. Wow," wrote the 24-year-old. In an exchange with his Portuguese-born New South Wales team-mate Moises Henriques, Khawaja said it "wasn't that I wasn't born here but where I was, brother". Cricket Australia (CA) confirmed that Khawaja's visa had been held up by officials at the Indian High Commission (embassy) but said they were confident of resolving the issue before the tournament. "There has been a stoppage in the system at the Indian High Commission in Australia with Usman's application," CA spokesman Philip Pope told AFP. "Cricket NSW and Cricket Australia are seeking to understand the detail behind the stoppage with our colleagues at the Indian High Commission." Pope said the cricketing body had a long-standing relationship with the Indian mission and "we generally find that we resolve our issues mutually, so we'll work through this once we've understood the detail". "I can't give you a timeline of when it will be resolved, but I'm confident given our history and our relationship that we will resolve this as soon as possible," he said. Khawaja, the first Muslim to wear the baggy green for Australia and also a qualified pilot, is on the 20-man long list for the NSW Twenty20 side, of which 15 will ultimately be sent. The promising young left-hander made his Test debut for Australia in the fifth match of the Ashes series in Sydney in January, signing with Derbyshire later that month for the English domestic season. -APP
Haider appointed member AFC disciplinary committee LAHORE: Asian Football Confederation has appointed Nayyer Hussnain Haider a member of AFC Disciplinary Committee at a recent AFC Executive Committee meeting held at AFC House, Kaula Lumpur. A spokesman of Pakistan Football Federation said here on Tuesday that Haider,a former IG Police, is associated with PFF and has assisted PFF in holding fair and impartial election of 2007 and 2011 as Election Commissioner Punjab. He has also worked for the promotion and development of football as head of the Pakistan Police Sports Board. He is a law graduate and has vast experience of management including sports. " His appointment is yet another honour for Pakistan and we hoped he would do his best to bring good name for the country," he said. APP
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International & Continuations
Wednesday, August 10, 2011
London riots spill over more cities TFD Monitoring
DHAKA: Girls of an indigenous group perform a traditional dance during the World Indigenous Day celebrations in Dhaka. About 45 ethnic groups took part in World Indigenous Day celebrations in Bangladesh. - Reuters
Retailers hit worst after UK riots LONDON: Retailers face tens of millions of pounds in costs and losses following rioting, looting and arson across and beyond London, and the impact on smaller businesses could be terminal, retail representatives warned. "It will amount to tens of millions of pounds in terms of damage to property, goods stolen, and of course lost business," Richard Dodd, head of media at the British Retail Consortium told Reuters Tuesday. In a statement, the BRC, which represents about 90 percent of retailers, called for urgent action to help shopkeepers protect property, as well as assurances that the police would use "robust" tactics to close down situations and ensure offenders were "suitably punished." London has seen the worst violence in the capital in decades in recent nights, with the unrest spreading to other cities like Birmingham and Liverpool. A stretched police force has been criticised for its apparent inability to cope and reluctance to use heavy tactics.
Dodd expressed concern over the impact on retailers, who are already struggling to cope with dire economic conditions. "Many retailers were under quite a lot of pressure anyway, particularly some of the smaller independent ones who haven't got big national resources to draw on, and undoubtedly in some cases it won't be viable for them to start up again," he said. Sportswear and electrical goods stores were particularly targeted by the looters. "As has been well publicised, a number of JD stores have been affected by the disturbances in London and other parts of the UK over the past few days," said sports good retailer JD Sports, adding it was too early to assess the full extent of the damage. Comet, the loss-making electricals chain owned by Kesa, said several stores across London had been hit, while Dixons, which owns Currys and PC World, said "a number of stores had been affected to varying degrees."
Food and drink stores were also among those affected. Baker Greggs said two of its London shops had been damaged. "Our shop in Peckham was next to a building that caught fire. We think it's pretty much ruined as a shop. Another, in Ealing, was looted," Chief Executive Ken McMeikan told reporters on a conference call. McMeikan added that a Greggs driver had been assaulted while making a delivery. Britain's biggest retailer Tesco said several stores in London and other cities had been affected by what it described as "criminal gangs of looters and arsonists," but all except one store in Liverpool had reopened Tuesday morning. "We will cooperate fully with the police in bringing these criminals to justice," the company said. Grocer Sainsbury said 16 of its stores were impacted by serious incidents. Stores were closing early across London Tuesday afternoon as a precaution against a feared return of trouble. -Reuters
Syria offensive continues despite Turkish talks AMMAN: Syrian forces killed at least 30 people and moved into a town near the Turkish border on Tuesday, an activist group said, even as Turkey's foreign minister pressed President Bashar al-Assad to halt assaults on protests against his rule. The National Organization for Human Rights said most of the fatalities occurred when troops backed by tanks and armored vehicles overran villages north of Hama, while four were killed in Binnish, around 30 km (20 miles) from the border with Turkey. Despite growing international condemnation, including a sudden wave of Arab criticism, Assad's forces also pursued an offensive in the eastern city of Deir al-Zor, residents said. Turkish Foreign Minister
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Ahmet Davutoglu met Assad to urge him to call off the crackdown in which activists say at least 1,600 civilians have died, making it one of the bloodiest of the upheavals sweeping the Arab world. Davutoglu held six hours of meetings with Syrian officials, including a two-hour session alone with Assad. There was no immediate official comment after their meeting. Neighbouring Turkey has grown increasingly critical of the violence but earned a sharp rebuke on Sunday when an Assad adviser said Syria would not accept interference in its affairs. Secretary of State Hillary Clinton had asked Davutoglu to reinforce a demand from Washington that Syria return the army to barracks immediately and release
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Millat Tractors Limited, Pakistan State Oil Company Limited and MCB Bank Limited lost their per share value by Rs11.25, Rs10.80 and Rs8.73 respectively. The volume leader of the day included The Bank of Punjab Limited with 345,768 shares, Lotte Pakistan PTA Limited with 248,750 shares and Silk Bank Limited (Saudi) with 98,860 shares. - APP
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On October 27, 2008, the Hang Sang tumbled 12.7 per cent. With today's fall, the benchmark is now down 22.6 per cent from its cyclical high in midNovember 2011, meeting the technical definition of a bear market. Trading volumes in futures and options on the Hong Kong exchange hit a record high with a total of 1,190,275 contracts traded. Near-month futures on the Hang Seng closed down 4.8 per cent and flipped to a slight premium to the cash market at the close. HSBC Holdings Plc was the top drag on the cash market with its 7.3 per cent decline on the day, but seven Chinese large-caps followed, with financial and oil names most prominently represented. Among them, Chinese Construction Bank, Industrial and Commercial Bank of China and PetroChina Co., as the China Enterprise Index of the top Hong Kong-listed Chinese companies dipped 6.2 per cent. SHANGHAI FLAT In China, a sharp reversal helped the Shanghai Composite Index end a volatile Tuesday basically flat as investors sought bargains among stocks in large-cap shares, following two days of steep losses. The Shan ghai benchmark closed down 0.03 per cent at 2,526.1
prisoners. Syria has faced nearly five months of protests against Assad's 11-year rule, inspired by Arab revolts which overthrew leaders in Egypt and Tunisia earlier this year. Last week Assad sent troops and tanks to quell the mostly Sunni Muslim city of Hama in central Syria and the army launched a similar assault on Sunday against Deir al-Zor. An armored column also pushed toward the center of the city on Tuesday, with troops storming houses and making arrests in the provincial capital of an oil region bordering Iraq's Sunni heartland, a resident said. "They are now about one kilometer from downtown. When they finish with one district, they move to another," said the resident, who gave his name as Iyad. - Reuters
Libya's rebels take over London embassy LONDON: Diplomats named by Libya's rebel administration, the National Transitional Council (NTC), took over the London embassy previously staffed by appointees of Muammar Gaddafi's government on Tuesday, the British Foreign office said. Britain recognised the NTC as Libya's sole legitimate government in late July and said it would invite a new Libyan diplomatic mission made up of opponents of Gaddafi. "The National Transitional Council is the sole legitimate governmental authority in Libya. It is therefore right that their representatives are now staffing the Libyan Embassy," Foreign Secretary William Hague said in a statement. The Times newspaper reported that Gaddafi's government was planning to use anti-squatter laws to try to evict the embassy's new occupants. It said Gaddafi's lawyers were also seeking to challenge Britain's recognition of the opposition and to prevent Britain from using frozen Libyan state assets. A Foreign Office spokesman said he was not aware of any such legal proceedings against the British government. The NTC had said families of rebel civil war victims would hoist the red, black and green flag representing the Libyan rebel movement over the embassy in the Belgravia district. The green Libyan flag of the Gaddafi government flew above the building until this weekend. It has since been removed. "The reopening of the Embassy symbolises how far we have come. The Embassy represents the legitimate government of Libya and in line with this, will serve all the Libyan community irrespective of their political allegiances," the new charge d'affaires, Mahmud Nacua, said in a statement. - Reuters
points after falling as much as 3.5 per cent. The CSI300 index of the top mainland listings also reversed similar losses to edge up 0.2 per cent at 2,798.2 points. Analysts said investor sentiment had gradually improved after banking shares followed property shares higher on expectations that weak economic conditions in the United States and Europe would prompt Chinese authorities to hold off on further interest rate rises. This is despite data earlier on Tuesday showing consumer inflation in the world's second-largest economy quickened to a faster-thanexpected 6.5 per cent in July. 'Funds prefer the large caps because of their low valuation and they (large caps) will play a critical role in market stability,' said a trader at a major securities house in Shanghai. Analysts and traders said some government funds could have entered the market following sharp falls, but expect any gains to be limited as investors remain cautious over further monetary policy changes.-Reuters
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"Once the situation settles down a bit, India will be quite a big beneficiary of the current environment because the commodity prices are dropping which is going to help, especially the falling crude prices," he said. The BSE index shed 132.27 points to end at 16,857.91, its lowest close since June 9 last year, with 18 of its components in the negative territory. The benchmark has been one of the worst performers this year, having lost nearly 18 per cent. In the past six days, the selloff has wiped $8 billion off the market value of all stocks on the Bombay
LONDON: A wave of violence and looting raged across London and spread to three other major British cities Tuesday, as authorities struggled to contain the country's worst unrest since race riots set the capital ablaze in the 1980s. In London, groups of young people rampaged for a third straight night, setting buildings, vehicles and garbage dumps alight, looting stores and pelting police officers with bottles and fireworks. The spreading disorder was an unwelcome warning of the possibility of violence during London's 2012 Summer Olympics, less than a year away. Police called in hundreds of reinforcements and made a rare decision to deploy armored vehicles in some of the worsthit districts but still struggled to keep pace with the chaos unfolding at flashpoints across London, in the central city of Birmingham, the western city of Bristol and the northwestern city of Liverpool.
"The violence we have seen is simply inexcusable. Ordinary people have had their lives turned upside down by this mindless thuggery," police commander Christine Jones said. The riots appeared to have little unifying cause though some involved claimed to oppose sharp government spending cuts, which will slash welfare payments and cut tens of thousands of public sector jobs through 2015. But many appeared attracted simply by the opportunity for violence. "Come join the fun!" shouted one youth in the east London suburb of Hackney, where shops were attacked and cars torched. The crisis will be a major test of Prime Minister David Cameron's Conservative led coalition government, which includes Liberal Democrats who had long suspected its program of harsh budget restraints could provoke popular dissent. Cameron cut short his summer vacation in Italy, rushing home for a crisis meeting Tuesday. Cameron was
expected to toughen the police response. Britain's Home Secretary Theresa May refused to outline what that might entail, but seemed to rule out more drastic measures. Rioters were left virtually unchallenged in several neighborhoods and able to plunder from stores at will or attempt to invade homes. Restaurants and stores fearful of looting closed early across London. Disorder flared throughout the night, from gritty suburbs along the capital's fringes to central London's posh Notting Hill neighborhood. London Ambulance Service treated 16 patients, of whom 15 were hospitalized. Police said 334 people had been arrested and 69 people charged with offenses. Violence first broke out late Saturday in the low-income, multiethnic district of Tottenham in north London, where outraged protesters demonstrated against the fatal police shooting of Mark Duggan, a 29-year-old father of four who was gunned down in disputed circumstances Thursday.
London turmoil
Losses loom large on insurers LONDON: Three nights of rioting in London and other cities are likely to cost insurers "tens of millions of pounds," a spokeswoman for the Association of British Insurers (ABI) said on Tuesday. "It is too early for us to have an accurate picture of total costs, especially business interruption costs, but insurers are working hard to deal with claims coming in which will give a sense of the level and cost of damage," Nick Starling, ABI director of general insurance and health, said in a statement. London has been hit by three nights of riots, looting and arson by masked, hooded youths who wrecked shopping streets in parts of the capital, with violence spreading to other cities on Monday. Analysts said a repair bill in the tens of millions of pounds would be easily absorbed by the insurance industry, which paid out 900 million pounds in December alone after freezing weather triggered a surge in claims. The impact on insurers will also be tempered by a 125-year old British law which makes the police liable for property damage suffered as a result of rioting."The theory is that the police are responsible for keeping law and order and if they fail, they pay for the damage," said Stuart While, a partner at law firm Reynolds Porter Chamberlain.- Reuters Stock Exchange. However, Indian equities outperformed most regional bourses on Tuesday with Korea falling 3.6 per cent and the MSCI's measure of Asian markets other than Japan ending down 2.7 per cent. Falling oil prices will help in managing India's inflation, Finance Minister Pranab Mukherjee said on Tuesday. Headline inflation in June had quickened to 9.44 per cent and the central bank has raised interest rates 11 rises since March 2010 to cool price pressures. "The fact that it is less exposed to the OECD economies and the fact that commodity prices are falling are two things that benefits India," Mahtani said, referring to the Organisation for Economic Cooperation and Development. "We have been increasing our exposure...and that's very much our advice to investors, which is to look at this as an opportunity and look at the quality names." Brent crude plunged to a six-month trough below $99 a barrel on Tuesday in a two-session drop of nearly $10, after a US credit downgrade intensified fears about a global slowdown in demand for energy. Still, India's volatility index touched an all-time high of 37 points on Tuesday signalling a sharp rise in investors' risk aversion. While the US downgrade late on Friday was the most obvious blow to confidence, investors have also been spooked by data suggesting the US economy was stalling and Europe's ever-worsening sovereign debt crisis. Foreign institutional investors have sold Indian equities worth about $556 million so far this month, after investing a net $2.3 billion between January and July. Energy major Reliance Industries, which gets more than 60 per cent of revenues from exports, dropped 2 per cent to 765.30 rupees, taking its losses to about 28 per cent so far this year. The 50-share NSE index ended down 0.89 per cent at 5,072.85 points. In the broader market, losers led gainers in the ratio of 3.4:1 on high volume of 835 million shares.-Reuters
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on the Topix are trading just below book value, while those on Wall Street's benchmark S&P 500 are at about 2.0 times book value, analysts said. "I still don't think people are running out of here in panic. If there's such a thing as an orderly decline (this is it)," said a trader for a foreign brokerage in Tokyo. "Some people think we're massively oversold and we're due for a bounce." On Monday, panic selling on Wall Street brought the S&P 500's worst day since December 2008, with every stock in the benchmark index ending in negative territory. In the Japanese market, 32 of the Topix's 33 subsectors were negative, with oil shares and trading houses underperforming on falling crude prices. Inpex tumbled 5.5 per cent to 497,000 yen, JX Holdings dived 4.2 per cent to 484 yen and Mitsubishi Corp dropped 2.8 per cent to 1,842 yen. US crude oil prices fell below $80 on Tuesday for the first time since October 2010, extending the previous day's decline of almost $6 after the US rating downgrade heightened concerns about slowing economic activity and energy demand by the world's top user. Tokyo Electric Power Co saw volatile trade as retail investors unloaded it while day traders engaged in margin trading. It ended flat at 389 yen, having hit an intraday-low of 335 yen after the Nikkei business daily said the utility was expected to report extraordinary losses. After the close Tepco reported a net loss of 571.8 billion yen ($7.4 billion) for the April-June quarter, and booked a 400 billion yen charge to compensate victims of the radiation crisis at its Fukushima Daiichi nuclear plant. Volume was high, with 3.3 billion shares changing hands on the Tokyo stock exchange's main board, the highest since March 23. Declining issues outnumbered advancing issues by 1,206 to 362.-Reuters
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Net sales of the company increased by 30.5 per cent to Rs78.25 billion from Rs59.96 billion, field expenditure were up nearly17 per cent to Rs21.36 billion. Other operating income contributed in improving the bottom line, up by 72.6 per cent to Rs4.45 billion compared to Rs2.57 billion as compared to previous year.
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Excelsia Investment Advisors in Savannah, Georgia. "You are technically way oversold and secondly, this whole thing has been political." The Dow Jones industrial average gained 184.06 points, or 1.70 per cent, to 10,993.91. The Standard & Poor's 500 Index rose 26.31 points, or 2.35 per cent, to 1,145.77. The Nasdaq Composite Index advanced 72.67 points, or 3.08 per cent, to 2,430.36. Analysts were conflicted over what to expect from the statement, as some were unsure what action, if any, the Fed has left at its disposal. The CBOE Volatility Index, also known as the VIX, fell 14 per cent, but it was still up more than 60 per cent so far this month. Standard & Poor's downgrade of the US credit rating late Friday, removing the nation's perfect triple-A designation for the first time in history, sparked the stock market's huge selloff and underlined fears a recession was inevitable, given increasing signs of slowing growth and more turmoil in the euro zone. According to a Reuters poll, the US faces one-in-four odds of slipping back into recession, though the economic outlook is raising the likelihood of new Fed action.-Reuters
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considerably weaker than expected, suggesting inflation, which has already moderated recently, will remain contained for the foreseeable future. - Reuters
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economic cooperation between the commerce secretaries of India and Pakistan, held on 27 -28 April 2011 where the secretaries had discussed trade promotional options. There are many sectors, in both countries where joint ventures and case to case investment are possible.
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FM briefs lawmakers
Pak for cordial relations with India: Hina ISLAMABAD: Foreign minister Hina Rabbani Khar declared in the National Assembly that Pakistan was seeking good neighbourly relations with all its neighbours especially with which it has traditionally difficult ties. Briefing the House on the foreign ministers-level talks held with India last month, she said Pakistan wants to build trust with countries like India and Afghanistan and begin a new era of cooperation. The Minister said it was intention of Pakistan to make dialogue process with India uninterrupted and uninterruptible. She said "we want to create conducive environment in which the two countries could talk about core issues and move towards their resolution." She said before foreign ministers-level talks with
India, Prime Minister Syed Yousuf Raza Gilani took the entire political leadership into confidence on the dialogue sending a strong message that Pakistan was serious in engaging with India. Hina Rabbani Khar said during her stay in New Delhi she met with Kashmiri leaders including Syed Ali Gilani and Mir Waiz Umar Farooq assuring them that Pakistan remains committed in its political and legal position on Jammu and Kashmir and continue to support their cause. She reiterated Pakistan's continued support to associate true representatives of Kashmiri people with dialogue process with India on Jammu and Kashmir. The foreign minister said the two countries had frank, constructive, cordial and meaningful dialogue
and agreed to carry forward the process with a view to resolving peacefully all outstanding issues. She said India was conveyed that Pakistan remains committed to a just and peaceful resolution of the Kashmir issue in accordance with the aspirations of the Kashmiri people. Pakistan also conveyed its desire that it wants meaningful and result-oriented engagement on Jammu and Kashmir and that serious consideration should be given to associate APHC with PakistanIndia dialogue on Jammu and Kashmir, she said. Pakistan also conveyed its serious concerns over violation of human rights of Kashmir people and emphasized the need for respecting their fundamental rights and freedom, she said. - NNI
4.6 million tonne rice export target proposed KARACHI: The delegation of Rice Exporters Association of Pakistan (REAP) here held a meeting with Zafar Mahmood, federal secretary, Ministry of Commerce at Trade Development Authority of Pakistan (TDAP) head office in Karachi and discussed the export targets of rice for the year 2011- 2012. Tariq Iqbal Puri, chief executive, TDAP along with senior officials of Ministry
of Commerce and TDAP were also present in the said meeting. Irfan Ahmed Sheikh, Chairman REAP gave briefing on performance of rice export sector during last 2-3 years and keeping in view the facts and figures he presented estimated export targets for the year 2011-2012 to the federal secretary. Expected rice exports for the year 2011-2012 would be around 4.6 million tonne
with a turnover of $2.5 billion. He further apprised the meeting about the issues and problems which are being faced by rice exporters and requested government of Pakistan to resolve the same on priority basis especially the law and order situation in Karachi, as this will help not only to maintain the targets but also likely to go beyond the set targets. - NNI
Panel prioritises energy sector issues ISLAMABAD: A highlevel meeting of the committee formed by the Prime Minister Syed Yousuf Raza Gilani for the energy sector issues here on Tuesday discussed in detail issues related to the liquidity of the sector, circular debt, KESC, full cost recovery, corporate governance, National Electric Power Regulatory Authority's (NEPRA) enhanced role, independent power producers (IPP) payables, tariff issues and payables and receivables of power sector. The meeting of the Committee on the energy sector issues was held under the chairmanship of the Minister for Finance, Dr
Abdul Hafeez Shaikh. The Committee consists of Naveed Qamar Minister for Water and Power, Dr Asim Hussain Minister for Petroleum and Natural Resources, Nadeem Ul Haq Deputy Chairman Planning Commission and Yaseen Anwer Governor State Bank of Pakistan. Representatives from the Ministry of Water and Power, Planning Commission, Nepra and Economic Reform Unit (ERU), attended the meeting to review the crises being faced by the energy sector. According to a statement issued by the Ministry of Finance here, for a more focused approach, the committee decided categorisa-
tion of the issues of the power sector in the most immediate and critical to long-term solutions. The meeting also decided that a detailed action plan would be formulated for resolving the issues confronting the sector. It was observed that the issues are complex and require deliberation and it was decided to deal with all the issues in sequence on a daily basis. Therefore, the next session of the meeting will be held on August 10, 2011 with a more narrowed down approach on the issues haunting the power sector with short, medium and long term solutions for them. - APP
JEDDAH: Prime Minister Syed Yousuf Raza Gilani talking to Saudi King Abdullah bin Abdul Aziz at Salam Palace.-Online
PR acts quickly to avail bailout ISLAMABAD: Pakistan Railways (PR) has sent Rs4 billion PC-1 to the finance ministry for bailout package. The Ministry on Aug 5 announced Rs10 billion for bailout package. Out of that amount Rs6 billion was to be paid by bank consortium while the remaining amount by the finance ministry. In the new PC-1 the PR said that Rs2 billion will be spent to repair the signal system while Rs2 billion to be spent on 500 passenger coaches, 50 power vans and other such things. Before this in December 2010, an amount of Rs11 billion was announced for PR after approval by the Prime Minister. - NNI
Fresh wave of Khi violence takes 10 lives KARACHI: Despite tall claims of political parties as well as government, peace in Karachi could not be restored as the killings continue for last several days. On the midnight between Monday and Tuesday at least six people were killed owing to firing incidents due to which the death toll during 18 hours reached ten in Karachi. In a fresh incident one man was gunned down at Baldia . A dead body was also recovered from a street near Radio Station, whereas a person was also killed at Dehli Colony . In Liaquatabad a 25 year old Azeem was also killed. A youth who was injured near old Haji Camp, succumbed to injuries. A sacked dead body was recovered from the area of Napier but his identification could not be made. Similarly a body was also recovered from the Liyari Nullah, which was thrown to drainage after killing him with bullets. All the dead bodies were shifted to different hospitals of the city. Two persons were also injured by firing from unknown miscreants in the localities of Gulshan-eHadeed and Baghdadi. - Online
US ready to help pacify metropolis: Wassan TFD Monitoring KARACHI: Sindh home minister Manzoor Wassan said the United States (US) is ready to help Pakistan improve the law and order situation in Karachi, a private news channel reported on Tuesday. Speaking to the media at his
residence after briefing US Consul General William Martin on the overall situation in the city, Wassan said the US had offered equipment and other expertise to overcome the situation in the city. The home minister said the government of Sindh is yet to accept the offer made by the US. He said 15 armoured per-
sonnel carriers (APC) will arrive by the end of August. The Sindh government is giving the police Rs5 billion to buy new vehicles and equipment. It will buy 40 armoured personnel carriers. The struggling police force is understaffed and underequipped, given the size of Karachi city and the terrifying
spread of crime. Wassan said action was being taken against all anti-state elements operating in Karachi and that 101 people had already been arrested during midnight operations. The home minister said he is upholding the policy of reconciliation while taking steps to improve the situation in Karachi.
Pak, US need each other: envoy WASHINGTON: Although a spate of events has given rise to mutual distrust, there is recognition in both Pakistan and the United States that the two countries need each other, Ambassador to the United States Hussain Haqqani said on Tuesday. In an interview with Washington's WTOP Radio, the envoy also sought understanding of Islamabad's perspective in the United States. Haqqani noted that two incidents this year - a unilateral US action on Osama bin Laden hideout in Pakistani town of Abbottabad and the killing of two Pakistanis by a CIA contractor - have particularly led to a negative image of the United States among people. "When the Americans come into Pakistan in a military fashion, unilaterally with guns blazing, essentially they are creating fear amongst the
populous, which instead of looking upon them as friends starts being suspicious," he explained. "There are enough suspicions about the US in Pakistan already," said Haqqani. "There is a lot of negativity, which the US needs to fight to change public opinion and win over hearts and minds, but in a circumstance like that, to do something like this, results in more negativity." The radio station in its account of the interview and the current ties between the two countries noted that the high-profile military operation that led to bin Laden's death infuriated many Pakistanis who were already seething over what's become known as the "Ray Davis" affair. Davis, a covert CIA employee, who was arrested and charged with killing two
armed men on Jan. 27. According to Haqqani, that too was handled in a careless manner by the U.S. While being critical of the US handling of certain elements of the relationship, Haqqani praises Secretary of State Hillary Clinton, calling her, "an American with an understanding of the world that is unusually brilliant. Her manner of conducting herself with foreign governments is one of engagement with the American interest being foremost, but an understanding of the others point of view." Commenting on the nature of US-Pakistan relations over the course of decades, the radio noted the history suggests that pragmatism has guided the US view of its relationship with Pakistan since its inception. Off and on support for Pakistan, dating back to the 1950s, has been the norm. - APP
PPP equally responsible for Karachi unrest: Gabol KARACHI: Pakistan People's Party (PPP) leader and MNA Nabeel Gabol on Tuesday said "everyone knows who is responsible for the killings in Karachi". Nabeel Gabol stated that he knew of almost 5,000 houses where weapons were stored and that there was no need for a political reconciliation. He also held the PPP as among those responsible for the situation in Karachi. Speaking during a debate on
the situation of Karachi in the National Assembly, Gabol said that he would tell interior minister Rehman Malik about the elements responsible for destabilising Karachi. He said he did not want any prize for identifying the culprits and further stated that the police and law enforcement agencies were providing security to the criminals. During the session, PPP leader Fauzia Wahab said some people were unwilling to
accept the facts behind Karachi's situation and were destroying the city as a result of their irrational approach towards the issue. On this occasion, Pakistan Muslim League - Nawaz leader Ayaz Amir said that different administrative systems were being introduced for different regions of Sindh. He further said that the corps commanders should not issue statements on Karachi and other internal issues. - NNI
Swat-like operation demanded for Karachi ISLAMABAD: Senior leader of Pakistan Muslim League - Quaid-e-Azam (PML-Q) Amir Muqam Tuesday said that situation in Karachi is out of control of the political parties and army should be allowed to take control of it. Talking to media men here outside the Parliament while the National Assembly session was near to end, he said that neither Pakistan People's Party (PPP), nor Awami National Party (ANP), Muttahida Qaumi Movement (MQM) or any other party can control law and order in Karachi. "A large number of those people who were busy in wage earning were killed sometimes in riots while other times target-killings and terrorism visit streets of the metropolis," he said, adding this is an absolute injustice with the people and the country. The blood bath should come to end now, he said. He said that the present situation implies that only operation by army can control the situation in Karachi. "I belong to a militancy-hit area in Khyber Pakhtunkhwa, I personally faced suicide attacks and blasts. Situation in Swat was only controlled when people supported Pakistan army in carrying out successful operation," Amir Muqam, who is also PML-Q provincial president, said. Some issues naturally need military force otherwise it intensifies and issues cannot be resolved in the way that violence is rifted when allies are disunited, he said. "As I already said inside the Parliament, there are violence-prone men in Karachi who support terrorists. MQM supports its own violent men, ANP its own and Zulfiqar Mirza his own. So when it comes to action none of them agree to carry out operation against the violent elements," he told Online. - Online
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