The Financial Daily-Epaper by The Financial Daily

International Karachi, Friday, May 13, 2011, Jumadi-ul-Saani 9, Price Rs12 Pages 12

Singh, Karzai discuss post-Osama scenario

SC seeks original complaint record

See page 12

'N' eyes opposition leader slot in Senate

See page 12

Nato strikes Tripoli as Gaddafi appears

See page 12

See on page 12 Economic Indicators

Gilani inaugurates Chashma Power Plant

$17.11bn 14.08% $20.15bn $32.26bn $(12.11)bn $99mn $9.05bn $1.32bn Rs 1012bn $59.54bn Rs 5463bn $491mn 6.75% 4.10% $1,051 176.00mn

Forex Reserves (30-Apr-11) Inflation CPI% (Jul 10-Apr 11) Exports (Jul 10-Apr 11) Imports (Jul 10 - Apr 11) Trade Balance (Jul 10 - Apr 11) Current A/C (Jul 10- Mar 11) Remittances (Jul 10 - Apr 11) Foreign Invest (Jul 10-Mar 11) Revenue (Jul 10 Mar 11) Foreign Debt (Mar 11) Domestic Debt (Mar 10) Repatriated Profit (Jul- Mar 11) LSM Growth (Mar)

GDP Growth FY10E Per Capita Income FY10 Population

Pak says ISI-CIA ties broken down l Working with US will put govt in peril: Gilani l Demands civil N-tech, says bids on to end crisis

Portfolio Investment SCRA(U.S $ in million)

237.17 Yearly(Jul, 2010 up to 11-May-2011) Monthly(May, 2011 up to 11-May-2011) 11.60 4.90 Daily (11-May-2011) 2823 Total Portfolio Invest (30-Apr-2011)

NCCPL

President Zardari calls on Russian counterpart

(U.S $ in million)

FIPI (11-May-2011) Local Companies (11-May-2011) Banks / DFI (11-May-2011) Mutual Funds (11-May-2011) NBFC (11-May-2011) Local Investors (11-May-2011) Other Organization (11-May-2011)

0.04 -1.96 0.54 0.08 0.42 1.19 -0.31

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

Close 11962.18 9716.65 23073.76 18335.79 2672.89 2844.08 5921.24 12608.20

Change 74.18 147.61 218.04 249.17 2.90 39.34 54.76 21.83

GDR update Symbols MCB (1 GDR= 2 Shares) OGDC (1 GDR= 10 Shares) UBL (1 GDR= 4 Shares) LUCK (1 GDR= 4 Shares) HUBC (1 GDR= 25 Shares)

$.Price PKR/Shares 2.60 110.15 14.24 120.65 2.00 42.36 1.70 36.01 10.87 36.84

Money Market Update T-Bills (3 Mths) T-Bills (6 Mths) T-Bills (12 Mths) Discount Rate Kibor (1 Mth) Kibor (3 Mths) Kibor (6 Mths) Kibor ( 9 Mths) Kibor (1Yr) P.I.B ( 3 Yrs) P.I.B (5 Yrs) P.I.B (10 Yrs) P.I.B (15 Yrs) P.I.B (20 Yrs) P.I.B (30 Yrs)

20-Apr-2011 20-Apr-2011 20-Apr-2011 26-Mar-2011 12-May-2011 12-May-2011 12-May-2011 12-May-2011 12-May-2011 12-May-2011 12-May-2011 12-May-2011 12-May-2011 12-May-2011 12-May-2011

13.25% 13.62% 13.87% 14.00% 12.99% 13.22% 13.56% 14.04% 14.18% 14.01% 14.06% 14.13% 14.45% 14.70% 14.91%

Commodities *Crude Oil (brent)$/bbl 112.20 *Crude Oil (WTI)$/bbl 97.53 *Cotton $/lb 144.30 *Gold $/ozs 1,492.10 *Silver $/ozs 33.65 Malaysian Palm $ 1,082 GOLD (NCEL) PKR 41,082 KHI Cotton 40Kg PKR 9,109 Open Mkt Currency Rates Symbols Buy (Rs) Sell (Rs)

Australian $ 89.70 Canadian $ 87.70 Danish Krone 16.30 Euro 120.50 Hong Kong $ 10.90 Japanese Yen 1.035 Saudi Riyal 22.55 Singapore $ 68.00 Swedish Korona 13.40 Swiss Franc 96.00 U.A.E Dirham 23.05 UK Pound 138.60 US $ 84.85

90.70 88.70 16.60 122.50 11.25 1.061 22.70 69.00 13.70 97.00 23.25 140.00 85.15

Inter-Bank Currency Rates Symbols

Buying

Selling

TT Clean

TT & OD

Australian $ 90.07 Canadian $ 88.09 Danish Krone 16.16 Euro 120.50 Hong Kong $ 10.90 Japanese Yen 1.051 Saudi Riyal 22.58 Singapore $ 68.47 Swedish Korona 13.42 Swiss Franc 95.64 U.A.E Dirham 23.06 UK Pound 138.70 US $ 84.73 Weather Forecast Cities

Islamabad Karachi Lahore Faisalabad Quetta Rawalpindi

MOSCOW: President of the Russian Federation Dimitry Medvedev receiving President Asif Ali Zardari at Kremlin. APP

90.28 88.29 16.20 120.78 10.92 1.053 22.64 68.63 13.45 95.86 23.11 139.03 84.92

Max-Temp Min-Temp

38°C 36°C 43°C 43°C 32°C 38°C

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Pak, Russia agree on JVs in energy sector PSM upgradation, gas fields development agreed MOSCOW: Pakistan and Russia Thursday agreed to promote trade, investment and pursue joint projects particularly in energy, infrastructure development, metal industry and agriculture. In a joint communiqué‚ issued after the meeting of President Asif Ali Zardari and Russian President Dmitry Medvedev in Kremlin, both leaders agreed that this enhanced cooperation would help develop a strong bilateral relationship based on mutual respect and mutual interests.

President Asif Ali Zardari is on his first three-day official visit to Russia at the invitation of his Russian counterpart. In the last 37 years, President Zardari is the first Pakistani President, who is visiting Russia officially. Both the presidents emphasised the importance they attach to promoting stability and peace in the broader region and, in this regard, to continue to enhance contacts, consultations, cooperation and coordination between the two countries.

SBP ups FX cash limit for dealers Staff Reporter KARACHI: The State Bank of Pakistan (SBP) has decided to increase the maximum cap on aggregate Foreign Exchange Exposure Limit (FEEL) of Authorised Dealers (ADs) by Rs500 million to R2500 million with effect from 16th May 2011. The increase in maximum cap of ADs is being effected in accordance with the changed market conditions and trade volumes. Based on the review of

the annual audited accounts, the Foreign Exchange Exposure Limit (FEEL) of each Authorized Dealer will be advised separately, says SBP Circular (DMMD No 5) issued today. It may be pointed out here that at present the FEEL of ADs is being calculated at 20 per cent of their Paid-up Capital (free of losses) with a maximum cap of Rs2000 million which has now been increased to Rs2500 million. Moreover, SBP reserves See # 6 Page 11

Zardari’s dual office

President ordered to relinquish one LAHORE: The Lahore High Court on Thursday has restricted President Asif Ali Zardari from conducting political activities at the Presidency. According to a private television channel, the LHC five-member bench headed by the LHC Chief Justice Ijaz Ahmed Chaudhry mentioned in its 35 page decision that a president should be neutral. "The president belongs to the whole country and

not of a single party. The court expressed the hope that the president would implement the decision." The verdict further mentioned that the presidency could not be used for political activities. Announcing the verdict, LHC expressed the hope that the president would soon relinquish his political office. The government lawyers had boycotted the court proceedings and did not advance See # 9 Page 11

Rs37bn for PSEs to avert default ISLAMABAD: Government will provide Rs37 billion on emergency basis to loss incurring state entities to enable them to avert international default. As per details furnished by ministry of petroleum and natural resources to parliament, Prime Minister Syed Yousuf Raza Gilani had already approved broad based frame work to address the circular debt issue of petroleum sector. According to documents available See # 11 Page 11

The two sides welcomed the signing of the agreement between Pakistan and Russia on Air Transport as well as the Memorandum of Understanding between the Ministry of Petroleum and Natural Resources of Pakistan and the Ministry of Energy of the Russian Federation in energy cooperation and cooperation in agriculture sector. Earlier, President Zardari and President Medvedev held a one-onone meeting followed by delegations level talks. See # 5 Page 11

Drone-hit kills 8 in NWA MIRANSHAH: At least eight people were killed in a US drone strike launched Thursday morning in suburban area of North Waziristan. According to the report, the US drone fired two missiles at a vehicle in the Datta Khel area of North Waziristan, completely destroying the vehicle and killing the people in it. The identities of the bodies have not been confirmed. The media report said See # 7 Page 11

US raids

Pak FO summons Munter ISLAMABAD: Foreign Office Thursday summoned US Ambassador to Pakistan Cameron Munter and recorded strong protest over the Abbottabad attack in which US SEALs killed Osama bin Laden unilaterally. According to sources, the FO also recorded strong protest over the statements of the US officials in the media and See # 8 Page 11

Reserves down at $17.01bn Staff Reporter KARACHI: Pakistan's foreign exchange reserves eased to $17.01 billion in the week ending on May 7, from $17.11 billion the previous week, a central bank official said on See # 10 Page 11

ISLAMABAD/ WASHINGTON: Prime Minister Syed Yousuf Raza Gilani has warned that continuing to work with the United States could imperil his government, unless Washington takes drastic steps to restore trust and win over 180 million Pakistanis. Despite the clamor of criticism in Washington alleging Pakistani duplicity over the fact that the al Qaeda leader had been hiding out in the sleepy garrison town of Abbottabad, Prime Minister Gilani claimed the role of aggrieved party in a deteriorating relationship. He complained repeatedly throughout the 45-minute breakfast interview about the widening "trust deficit" between the two allies. Prime Minister Gilani said cooperation between the CIA and its Pakistani counterpart, the ISI, had broken down, and that Washington and Islamabad differed on how to fight terror and forge an exit strategy in Afghanistan.

US says helping Pakistan in our interest WASHINGTON: The Obama Administration believes American assistance for Pakistan and its counterterrorism cooperation with the key regional country is in the longterm interests of the United States, the State Department said. "We've also been making this point, that our counterterrorism cooperation and our assistance to Pakistan is in the long-term national See # 13 Page 11 He did, however, for the first time publicly offer to support US drone strikes inside Pakistan, provided that Pakistan was in on the decision-mak-

ing. In an exclusive interview with TIME - his first since the raid that killed Osama bin Laden, Gilani warned that his government was accountable to an electorate increasingly hostile to the US, "I am not an army dictator, I'm a public figure," the Prime Minister told TIME, speaking at his palatial hilltop residence in Islamabad. "If public opinion is against you [referring to his US allies] then I cannot resist it to stand with you. I have to go with public opinion." Gilani had warned the US against further such strikes on its soil. "We are all on the same page," Gilani said, with an air of finality. The most glaring and worrying example of the breakdown for Gilani is in the working relationship between the CIA and the ISI. "Traditionally, the ISI worked with the CIA," he said. Now, "what we're seeing is that there's no level of See # 12 Page 11

Friday, May 13, 2011

Pak can help China tap over trillion-dollar ‘Halal’ market: FPCCI ISLAMABAD: A top official has said that China is developing one of the biggest economic zones in the world which will also benefit Pakistan's economy. Deputy DG of Standing Committee of the People's Congress of Xinjiang Uygur Autonomous Region, Muhametmin Yashen (Muhammad Amin Yasin) said this while

speaking to business community at the residence of Raza Khan, Chairman Coordination FPCCI. Yashen said that in west we have economic powerhouse like Shenzhen and in east we have Kashi (Kashgar) Special Economic Zone in just few hundred kilometres from Pakistan's border. Flanked with Deputy Chief of Mission, Chinese

Ex-envoy says

President's Moscow visit, major shift in foreign policy ISLAMAABAD Former ambassador and member of PPP Foreign Liaison Committee BA Malik Thursday said President Asif Ali Zardari's visit to Moscow was indicative of a "clear signs of a major paradigm shift" in the country's foreign policy. Since the historic establishment of close Sino-Pak ties under the dynamic leadership of shaheed Zulfikar Ali Bhutto the latest visit of the President to Moscow after a span of thirty years "virtually puts an end to the frozen cold war mind set which characterized the state of PakRussia relations for decades", Malik said in statement here Thursday. President Zardari is visiting Russian Federation which showed its rare warmth and hospitality by inviting the visiting dignitary to stay in the Kremlin. This honor to him shows how serious Russia is in developing excellent relations between the two nations, said the former envoy. He said Russia was likely to signal it's readiness to assist Pakistan and the

region in different projects of vital importance. Airlines of the two countries are expected to enter into cooperation agreements to mutual benefit. Pak Russia friendship will have a positive impact on South Asia where Moscow can play a vital role in normalization between India and Pakistan. This friendship will also send a clear message around the world that Pakistan is not alone in its neighborhood and consequently predatory powers will thin twice before twisting the arms of Islamabad. Some politicians can differ form the President and the government of his party on many issues but on Pak Russia relations the entire nation needs to be united as the whole country is on one page with regard to the Peoples Republic of China. The former envoy Malik said Zulfikar Ali Bhutto had initiated normalization of relations between the two countries leading to the setting up of Pakistan Steel Mill at Karachi with Russian cooperation.-APP

KARACHI: Director DHA City Karachi (DCK) Brig Aamer Raza Qureshi breifing Corps Commander Lt Gen Zahirul Islam on his visit to DCK project’s site on Super Highway.-Staff Photo

Embassy Huang Xilian and other officials, he said that they are organising first ever China AsiaEurope Expo in Urumqi scheduled Sept 1-5. He called upon business community to participate in the fair. Yashen, who is leading a 50-member delegation, said that Kashi economic zone will bring prosperity to the whole region while

Load shedding intensifies in city

KESC workers protest continues KARACHI: Load shedding in the city has intensified further as employees of Karachi electric Supply Company (KESC) continued their protest on Thursday. According to the details, people were facing constant power failure problems along with the mounting duration of load shedding in the city as there was no one to take notice of their complaints. There was no worker of KESC available to remove any fault across the city as all employees are on protest and they have closed all offices and complaint centers throughout the metropolis. People were compelled to face double problem of power failure, one of regular long load shedding and the second one has been caused by the protest of KESC employees. If any cable fault occurs in any area or house of the city, they get deprived of electricity permanently as no KESC worker was available to note their complaints or removed faults. All areas of Karachi including Gulshan-e-Iqbal, Gulistan-e-Johar, PECHS, Landhi, Korangi, Malir, Shah Faisal Colony, Ranchore Lines, Lines Area, Tariq Road and Lyari are facing 10-hour long load shedding daily. For last couple of days, KESC employees have gone on indefinite protest and they have abandoned all work, activities and locked all offices including complaint centers to express solidarity with those 4500 employees who were sacked by the KESC management few months back. NNI

expo will provide an interaction opportunity. On the occasion Raza Khan said Chinese investors should explore opportunities in sectors like finance, banking, power, alternative energy, IT, engineering goods, textile machinery, agriculture, agro-based industry, food, fruit processing, packaging, livestock, dairy farming and real

estate sectors. He said that Pakistan can help China in its plans to tap the vast potential of export market of Islamic countries and help tap a trillion dollar 'halal' food market. Raza Khan demanded special packages and incentives for Pakistani business community in the Kashi Special Economic Zone.-Online

CM Qaim visits Saudi Consulate KARACHI: Chief Minister Sindh Syed Qaim Ali Shah Thursday visited Saudi Consulate in Defence, near Gizri. He was greeted by Consul General of Kingdom of Saudi Arabia Faleh Mohammed Al- Ruhaily, Vice Consul General Obaidallah Al- Harbi and other staff of Consulate. Qaim Ali Shah on behalf of Government and people of Sindh, expressed deep sorrow and concern on hand grenade blast attempts at the premises of Saudi Consulate and termed it matter of grave concern. He said that Saudi Arabia is very important Islamic State and there are religious, brethren and cordial relations between Pakistan and Saudi Arabia since centuries. He added the government will not tolerate any attempt by criminals or miscreants on Saudi Consulate. He inquired from Vice

Consul General about the details of incident, who apprised the Chief Minister Sindh about the attempts made by some miscreants. C.C.P.O Karachi Saud Mirza and D.I.G. Police South Iqbal Mehmood also gave details of the Wednesday's blast attempts. Syed Qaim Ali Shah maintained that law enforcement agencies have been directed to arrest the culprits as early as possible. He added that the government agencies have been directed to un-earth those miscreants elements and assured Consul General of Saudi Arabia that the Government will fully try its best to capture those elements so as to reach the actual criminals of the society. The Chief Minister Sindh together with Consul General of Saudi Arabia visited places where hand grenades were thrown causing minor losses.-Online

SITE industrialists body worries on KESC strike KARACHI: The SITE Association of Industry representing more than 3000 industries in SITE area is very much worried with the continuous strike resorted to by the employees of KESC. While Karachi Electric Supply Company continued to suffer disruption and subversion at the hands of CBA Union and its outside connivers for fourth consecutive day on Thursday, the industries are also suffering because of burnt sub-stations, PMTs and disconnected electricity supply network at a number of places. Forcefully closed down operation offices and complaints centers, blocked repair and maintenance work and damaged and destroyed utility's assets, equipment and vehicles are causing great inconvenience. Complaints are being receiving from the industries that their power supply is discontinued for the last four days in most of the cases but KESC management is helpless in repairing the faults. The faults are being attended through out source by the KESC management but the pace is very slow. The Senior Vice Chairman of S.I.T.E. Association of Industry has demanded of the local administration and law enforcement agencies to provide protection to KESC's employees, assets and equipment as directed by the Governor Sindh and under the orders of Sindh High Court, in order to normalize the disrupted power supply system. The Union's subversion and interruption in the name of protest is totally uncalled for and unjustified, he said.-PR

SLIC pays Rs2.48bn in claims to 17,655 families

TFD Report BHURBAN: "State Life Insurance Corporation of Pakistan till Q-1, 2011 has paid total amount of Rs.2.48 billion against all claims, thus providing the cover for 17,655 families, out of which Rs.0.329 billion were paid as death claims to 1,702 families of policyholders and Rs.2.16 billion

as Maturity claims to 15,953 policyholders. While in the year 2010 State Life has also paid Rs.7.85 billion on account of claims thus providing financial protection and savings to thousands of valued policyholders and their families nationwide. This was stated by Shahid Aziz Siddiqui, Chairman, State Life while talking to

the media persons on the occasion of State Life Convention 2011 held at Bhurban, Murree. He said that State Life has successfully secured Rs.2.13 Billion as First Year Premium (New Business) during the 1st Quarter of 2011 showing an increase of 27% while in the year 2010 Corporation had secured

record First Year Premium of Rs.9.33 billion showing an unprecedented increase of 35%". Shahid Aziz Siddiqui said that State Life is one of those public sector organizations which is not a burden on the national exchequer. In fact State Life is playing a pivotal role in providing financial protection to million of families

through life insurance. Shahid Aziz Siddiqui informed the media that Renewal Premium also touched the figure of Rs.19.54 billion showing an increase of 28%. The Marketing force of State Life also extended financial protection to 6,51,460 new families nationwide during the year 2010. Chairman

ISLAMABAD: A delegation of women MPAs from Sindh Assembly called on Federal Minister for Interior, Senator A Rehman Malik at Ministry of Interior.-Online

Sindh Transport Minister says he is powerless KARACHI: Sindh's Transport Minister Akhtar Hussain Jadoon revealed on Thursday that about 300,000 illegal driving licenses have been issued in the province. "We are not consulted with when licenses are issued. I am a powerless minister and can't resolve the province's transport issues," he said. Responding to a question, Jadoon said that DIG Traffic had not attended any meeting of the ministry. Describing his powers, the minister revealed that not a single traffic constable honors his orders.- NNI

SMEs want friendly budget Staff Reporter KARACHI: The Union of Small and Medium Enterprises (UNISAME) has urged federal finance minister Dr Abdul Hafeez Shaikh to ensure a SME friendly budget to promote growth and stimulate economic activity. President UNISAME Zulfikar Thaver in an urgent message to the finance minister invited his attention to the sagging economy due to high cost of production, inflation, energy crisis, deteriorating law and order and above all harsh taxation and heavy import duties. He advised the minister to abolish duties and sales tax on machinery, tractors, farm equipments, generators, industrial raw materials and packing materials to promote industrialization and farming. He said the government should reduce duties on import of transport vehicles for improving the logistics. State Life also informed that Corporation's Life Fund which is the key indicator of its financial stability has now reached to Rs.225 billion. Replying to a question Shahid Aziz Siddiqui informed that State Life is planning to launch some new life insurance plans, so that people can invest their small savings in the life insurance policies. The work is also in progress in Bancassurance and Takaful. He informed that State Life is a very sound and stable financial institution which is also evident by the fact that it has been assigned "AAA" rating by PACRA (Pakistan Credit Rating Agency). He further stated to the media persons that State Life in support of Govt. of Pakistan's social programme "Benazir Income Support Program" has provided Rs.1,00,000 (one lac) as group insurance to hundred thousands of families. Siddiqui informed that State Life's Business in Gulf Region is also improved and in the year 2010 it has procured new premium around 36 lac US$ showing 16.1% increase over the previous year. Replying to a question Chairman State Life informed that Corporations' Investment Portfolio is also

Marketing of Pak's investment potential in China discussed Staff Reporter KARACHI: Tariq Sayeed, former president FPCCI and Vice President, Confederation of Pacific Chamber of Commerce & Industry (CACCI) met Chairman BOI, Saleem H. Mandviwalla at BOI Karachi office. Discussion with respect to Tariq Sayeed's upcoming visit to China and possibility of marketing Pakistan's i n v e s t m e n t potential/opportunities was held in detail. Tariq Sayeed informed that in order to attract investment from China we need to market investment potential of Pakistan among Chinese potential investors. It was further informed that he has been regular participant of some events/exhibitions in China wherein he has also taken Pakistani businessmen for marketing their industrial products. Chairman BOI, Saleem H. Mandviwalla briefed about the various activities being undertaken at BOI and discussed details of his recent visits to foreign countries and activities held thereof. Discussion with respect to investment

policies and incentives to investors in Pakistan in comparison to regional countries was also held. Chairman BOI briefed that BOI has restructured its website and data with respect to project/sector profiles which are available on it and can be downloaded and offered to Chinese investors for their possible investment in Pakistan. Sayeed appreciated the efforts and initiatives taken by the Chairman BOI for attracting investment in Pakistan. It was decided that Project/Sector profiles would be downloaded and would be offered to Chinese Businessmen by Tariq Sayeed during his upcoming visit to China. Further data would be sent to Tariq Sayeed on availability of land, labour cost, utilities availability in Pakistan etc. Close coordination would be maintained in future with respect to formation of delegations from Pakistan to foreign countries. Meeting ended with a vote of thanks and assurances of extending support/cooperation from both sides at all times.

KARACHI: President KCCI, Saeed Shafiq and Syed Naeem-ulHassan (Chairman CHAEF) presenting shield to Ateeq-ur-Rehman (CSR, KCCI) at a function held at a local hotel.-Staff Photo

progressing and in the year 2010 the investment income has reached to Rs.27.73 Billion, while the target for 2011 is Rs.33 billion. Chairman said that State Life is one of the largest Real Estate owners of the country. It has wisely invested the policy holders money in sound Real Estate Projects. This not only provides earnings to the Corporation in shape of rent but also provide space for its offices throughout Pakistan. In the year 2010 it has secured Rs. 240 million as net income from its real estate operations. The management has also launched construction projects of State Life buildings at Sargodha, Sialkot and Rahim Yar Khan to provide quality space for business promotion in these cities. This is in addition to the eighteen floor under construction Islamabad Towers. Syed Arshad Ali, Malik Asrar Hussain, Abdul Hafeez Sheikh and Shoaib Mir Memon Executive Directors State Life and senior corporate executives were also present on the occasion. Syed Arshad Ali, Executive Director Marketing, Group & Pensions while presenting the performance of his

portfolios has informed that in the Group Life side in the 1st Quarter of 2011 it has so far secured new premium of Rs.965 million while in the year 2010 it has secured Rs.3.955 Billion premium from 1294 groups. He further said that till Q1-2011 in individual life business; State Life's all four Regions have shown exemplary performance. State Life's Multan, Central, Southern and Northern Regions has shown a record increase of 36.70%, 30.81%, 17.42%, 20.42% respectively. Executive Director (Marketing) said that a strategy is being chalked out for the redressal of policyholders grievances. . Earlier, Shahid Aziz Siddiqi congratulated the marketing force and top business leaders on securing their business targets in 2010 and stress that better services be provided to the valued policyholders. Syed Arshad Ali, Executive Director (Marketing) and S.H. Kazmi, Divisional Head (Marketing) congratulated the delegates of State Life Convention 2011. Shields and Awards were distributed amongst the top performers.

Friday, May 13, 2011 Top Economic Events

Euro bounces off 6-wk low vs dollar on ECB comments US data sends mixed signals, investors cautious NEW YORK: The euro bounced off a six-week low against the dollar on Thursday as an ECB policymaker said April's interest rate rise was "certainly not" a one-off. European Central Bank policymaker Luc Coene on Thursday told Reuters, inflation risks in the euro-zone have increased and price pressures are building. The ECB raised interest rates by 25 basis points to 1.25 per cent in April to address the firming price pressures, ending two years of crisis-induced loose policy. Financial markets expect two more such rises this year. The euro's gains reversed the earlier trend where the dollar

index scaled a three-week high as a sell-off in commodities prompted an unwinding of dollar-funded bets on risky assets, the same reversal that pushed the euro to its multi-week low against the greenback. "Certainly the market is fixated on interest rate expectations and talk of a potential interest rate hike could give the euro a boost," said Gareth Sylvester, senior currency strategist at San Franciscobased Klarity FX. The euro was last up 0.3 per cent against the dollar at $1.4240, near the session peak

of $1.4259, and well off the session low of $1.4121. Part of the single currency's turnaround came after US eco-

nomic reports sent mixed signals, prompting some investors to remove bets on the dollar. The US economy struggled to gain momentum early in the second quarter, with retail sales posting their smallest rise in nine

Won leads Asian falls; more slides seen

months in April and wholesale prices increasing more than expected. Other data on Thursday showed new claims for unemployment benefits fell 44,000 last week to 434,000, but they remained too high to signal a strong labor market recovery. The dollar index rose as high as 75.645, its strongest in more than three weeks, taking it well above a three-year low touched only last week, before surrender-

SINGAPORE: The South Korean won led falls among Asian peers as investors cut risk positions amid a commodity rout and a weaker euro on Thursday with the Malaysian ringgit and the Thai baht weakening past major support levels. Emerging Asian currencies were hit as investors covered dollar-short positions on worries about potential hedge fund liquidations because of steep commodity drops. Also prompting more covering was a surprisingly sharp decline in Australia's employment. Investors are expected to further reduce holdings in Asian currencies despite their bullish longer-term outlook that's backed by strong economics and policymakers' efforts to fight inflation, analysts and dealers said. Despite the demand, the won ended domestic trading around

its session low of 1,085.2, indicating it may stay weak as players still hold dollar-short positions to cover. The central bank is expected to raise interest rates on Friday, but the views have been reflected in financial markets, so the projected rate hike is unlikely to boost the won, dealers and analysts said. The won may weaken to 1,095, around a low of April 19. If the level is broken, it will head to 1,100, around lows of March 31 and April 1. Foreign investors dumped a net 1.01 trillion won ($938.6 million) worth of Seoul shares, their largest daily sales since March 10. The Singapore dollar weakened to as soft as 1.2398 per the US dollar as interbank speculators covered short positions in the greenback. Model funds also sold the city-state currency, dealers

Stg hits 3-wk low on industry data LONDON: Sterling hit a threeweek low against the dollar on Thursday after a weak reading of UK industrial output bolstered expectations that a patchy economic recovery will keep UK interest rates low this year. The pound plumbed a session trough of $1.6235, its weakest since mid-April. Its losses mounted after a steep selloff in commodity prices prompted investors

to dump higher-risk currencies, including sterling, for relatively safer dollars. Analysts see a fall towards $1.60 as investors continue to price out the possibility of more than one Bank of England rate rise this year, despite a hawkish inflation outlook released on Wednesday. Adding to the view that UK growth will be sluggish this year, data showed UK industrial output rose 0.3 per cent in March after a 1.2 per cent fall in February, less than half the 0.8 per cent gain forecast by economists. Upward revisions to the BoE's

inflation forecasts on Wednesday had boosted sterling and the chances of a rate hike in coming months, but Thursday's data forced markets to reassess that view, with a hike now pushed back to late 2011 or early 2012. "Overall, the BoE will only raise rates once this year," said Ankita Dudani, currency strategist at RBS. "Sterling has been slow to accept this, and it needs

to catch up with its rate disadvantage against other currencies." Sterling initially fell about half a cent to around $1.6250 after the output data, after stop-loss orders were triggered through $1.6290 and $1.6280. It then recovered to around $1.6310 due to buying by a European semi-official name, traders said. But broad demand for the dollar later pushed the pound as low as $1.6235, down 0.6 per cent on the day. The euro rose around half a per cent to a session high of 87.31 pence, moving further away from an earlier seven-week low against the pound of 86.73. -Reuters

said. But as the euro fell below 1.42 versus the US dollar, the Singapore dollar extended falls, with room to soften more, probably to 1.2405-1.2414, lows of May 5 and May 6. The ringgit and the baht weakened past major support lines on dollar-short covers and are expected to fall more. The Malaysian currency is seen heading to 3.0140, the 50 per cent Fibonacci retracement level of the March-April strengthening trend, as it broke through 3.0000. The baht, which weakened past 30.17, the higher downtrend channel line of dollar/baht, has room to soften, probably to 30.32, the 38.2 per cent Fibonnaci retracement level of JanuaryApril strengthening trend. If the level is clearly broken, the next level is 30.51, the 50 per cent retracement level. -Reuters

Swiss franc treads water vs euro ZURICH: The Swiss franc was treading water against the euro on Thursday, with the market keen for any news on Greece's debt problems. The euro, bruised by concern that the problems in Greece could worsen, hovered just above a three-week low against the dollar. Investors generally buy the Swiss franc during times of heightened uncertainty. Concerns about euro-zone sovereign debts pushed the 'Swissie' to an all-time record of around 1.24 francs per euro in late December. The franc was near flat against the euro compared to the New York close, trading at 1.2603 per euro at 0725 GMT, having risen has high as 1.2572 earlier in the session, according to Reuters data. "Intraday (euro/Swiss) dips should find initial support at 1.2570, 1.2485," technical analysts at Commerzbank said. "Below 1.2430 would allow for the 1.2401 March low to be retested -- if seen, we look for this to hold. In the medium term, the Commerzbank analysts see euro/Swiss attempting to stabilise at 1.24 francs per euro. The franc was up 0.1 per cent against the dollar at 0.8859 per dollar. -Reuters

Aussie falls, market

Yuan ends lower vs $, mid-point retreats SHANGHAI: The yuan ended down against the dollar on Thursday after the People's Bank of China set a weaker mid-point as the dollar held near three-week highs. But traders said a fall of several pips in the yuan mid-point lagged far behind a nearly 1 per cent rally in the dollar index, reflecting that a momentary retreat in the yuan from record highs would not affect its longer-term uptrend as China uses the exchange rate to beat back inflation. "The long-term trend has not changed, and now, that is clear from guidance through the midpoint," said a dealer at a Chinese commercial bank in Shenzhen.

Chinese inflation eased a touch to 5.3 per cent in the year to April from a 32-month high of 5.4 per cent in March but was still higher than expected, data showed, keeping the door open for more tightening steps. Dealers said spot yuan would meet resistance at 6.49 for now, before the central bank sends a strong signal allowing the mid-point to breach this level. Spot yuan closed at 6.5000 versus the dollar, compared with Wednesday's close of 6.4930. It has appreciated 5.02 per cent since it was depegged from the dollar in June 2010, and 1.36 per cent since the start of this year. Before trade began, the

PBOC set the yuan's daily midpoint at 6.5005 against the dollar, weaker than Wednesday's 6.4948. The central bank uses the mid-point to express the governments' intention for the yuan's movements. The PBOC has guided the yuan to a slew of record highs this year, with a rise of 0.9 per cent in April, accelerating from 0.4 per cent in March, due in part to a general surge in global commodity prices. Offshore, oneyear non-deliverable forwards (NDFs) were bid at 6.3660, up from 6.3435 at Wednesday's close. Their implied yuan appreciation in a year's time was down to 2.11 per cent from 2.47 per cent. -Reuters

While the jobless rate held steady at a remarkably low 4.9 per cent, the sharp fall in fulltime jobs grabbed market attention and cast doubt on how soon the Reserve Bank of Australia will raise its 4.75 per cent cash rate. Important support for the Aussie is now located at last week's low at A$1.0537, though traders see risk in the near term for further declines. Resistance is pegged at $1.0664, then $1.0781. The New Zealand dollar remained on the defensive, holding around $0.7905, struggling to get past strong barrier at $0.7975 with the reversal in commodities. The New Zealand dollar barely reacted to data showing manufacturing activity expanding for the first time in three months in April and flat food prices. However, it made gains on the wobbly euro, which hovered above a 3-month low of NZ$1.7926. The euro has been hammered across the board this week on persistent worries about euro-zone sovereign debt problems and speculation that Greece will receive more bailout funding. -Reuters

Indian rupee at over 7-wk low; shares weigh MUMBAI: The Indian rupee ended at its lowest in over seven weeks on Thursday, weighed by the euro's fall against the dollar and a sharp drop in local shares, and traders expect the Indian unit to extend losses on Friday. The partially convertible rupee ended at 44.985/995 per dollar, after touching 45 per dollar earlier in the day, a level last seen on March 23. It had closed at 44.69/70 on Wednesday. "I see it opening above 45 per dollar tomorrow as the euro is likely to weaken overnight," said Naveen Raghuvanshi, an associate vice president at Development Credit Bank. With the global markets down, sentiment leans towards buying the dollar, a safe-haven currency, Raghuvanshi said. Inflows related to India's state-run Power Finance Corporation's Ltd's share sale did little to aid the local unit. The company's up to $1 billion share sale was fully covered by afternoon on Thursday, the third day of the offer.

Source Events EUR German Prelim GDP q/q EUR French Prelim Non-Farm Payrolls q/q CHF PPI m/m EUR Flash GDP q/q USD Core CPI m/m USD CPI m/m USD Prelim UoM Consumer Sentiment USD Prelim UoM Inflation Expectations

Forecast 0.9% 0.4% 0.4% 0.6% 0.2% 0.4% 70.0

Previous 0.4% 0.2% 0.4% 0.3% 0.1% 0.5% 69.8 4.6%

Source

Events

JPY AUD AUD GBP GBP EUR CAD USD USD

Current Account Employment Change Unemployment Rate Manufacturing Production m/m Industrial Production m/m Industrial Production m/m NHPI m/m Core Retail Sales m/m PPI m/m

Actual

Forecast

0.75T -22.1K 4.9% 0.2% 0.3% -0.2% 0.0% 0.6% 0.8%

1.02T 17.6K 4.9% 0.3% 0.9% 0.4% 0.3% 0.7% 0.6%

Previous Day

ing gains to trade at 75.182, down 0.2 per cent. The early broad recovery in the dollar also pushed it to a oneweek high against the yen before it slipped back to trade at 80.77, down 0.4 per cent on the day. Among commodity-linked currencies, the Australian dollar was particularly weak, tumbling to a one-week low after surprisingly weak Australian jobs data reduced market expectations of a rate hike. The Australian dollar and other commodity currencies did not react to China's move to increase reserve requirement ratios, although analysts warned this could add to the risk-off attitude in markets. -Reuters

Ringgit, baht break through cuts rate hike risk major technical supports SYDNEY/WELLINGTON: The Australian dollar fell a full cent on Thursday, hit by a surprisingly steep decline in employment that prompted markets to lower the risk of a near-term interest rate hike. The Aussie dollar was knocked across the board, falling around one per cent on the kiwi, yen, Swiss francs, sterling and even euro. It dived a cent to a low of A$1.0585 before clawing back to $1.6004. It was already been under pressure on heightened risk aversion spurred by a rout in commodity prices. The closely watched report showed employment fell 22,100 as full-time jobs dropped 49,100, far worse than the most pessimistic forecast for a decline of 5,000 jobs. "Everyone thinks it's become a custom to the obligatory 50,000 increase each month and all of the sudden you get one that says 50,000 losses and participation falling," said David Scutt, a trader at Arab Bank Australia. "Coupled with that Greece and falling commodity prices, it was probably the perfect storm for the Aussie just after that data," he added.

Time 11:00 11:45 12:15 14:00 17:30 17:30 18:55 18:55

The one-month onshore forward premium was at 25.25 points versus 26.25 points last close. The three-month was at 77.25 points against 82.50 points and the one-year was at 290.25 points compared with 305 points. The one-month offshore nondeliverable forward contracts were quoted at 45.27, weaker than the onshore spot rate. In the currency futures market, the most traded nearmonth dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were at 45.1300, 45.1250 and 45.1300 with total volume at $11.02 billion. -Reuters

1.22T 43.3K 4.9% 0.0% -1.2% 0.6% 0.4% 1.2% 0.7%

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

As per 22.00 PST Ask High 1.4180 1.4235 0.8890 0.8902 1.6260 1.6379 0.9653 0.9685 1.0628 1.0714 114.69 115.61 0.8724 0.8729 1.2608 1.2616 131.55 133.14 91.03 91.78 1492.58 1506.19

Bid 1.4181 0.8884 1.6258 0.9649 1.0621 114.64 0.8720 1.2604 131.48 90.98 1491.66

Low 1.4126 0.8848 1.6237 0.9601 1.0571 114.20 0.8676 1.2554 131.37 90.91 1478.31

London Inter Bank Offered Rates (LIBOR) Karachi: The following are the London Inter-Bank Offered Rates (LIBOR). British Members Association Interest Settlement Rates. AT 11:00 LONDON TIME 12/05/2011 A USD GBP CAD EUR JPY O/N 0.13150 0.57463 0.98500 1.01750 SN 0.11063 1WK 0.16855 0.58838 1.02500 1.11850 0.12000 2WK 0.17925 0.59750 1.05167 1.14750 0.12500 1MO 0.19800 0.62438 1.08667 1.18500 0.14063 2MO 0.23100 0.70000 1.13083 1.23500 0.16000 3MO 0.26075 0.82188 1.20000 1.37313 0.19563 4MO 0.30350 0.89438 1.27583 1.45563 0.24313 5MO 0.36325 1.00063 1.34417 1.54500 0.29750 6MO 0.41700 1.10938 1.40500 1.65625 0.34313 7MO 0.47250 1.19563 1.49250 1.73125 0.39188 8MO 0.52575 1.28250 1.57333 1.80875 0.44000 9MO 0.57625 1.36625 1.65083 1.89125 0.48313 10MO 0.63025 1.44563 1.74417 1.96750 0.51188 11MO 0.68100 1.51813 1.83333 2.03375 0.53750 12MO 0.73800 1.58656 1.92667 2.10875 0.56188

Major Central Banks Overview Central Bank

Next Meeting

Last Change

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

May 31, 2011 June 9, 2011 May 20, 2011 June 9, 2011 June 22, 2011 June 16, 2011 June 7, 2011

September 8, 2010 March 5, 2009 December 19, 2008 April 7, 2011 December 16, 2008 March 12, 2009 November 2, 2010

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

Division of National Bank of Pakistan (NBP) KARACHI, May 12,2011 Treasury Management Division of National Bank of Pakistan (NBP) Monday issued the following Exchange rates: Countries Selling Buying Buying TT & OD TT Clean OD/T.CHQ U.S.A. U.K. EURO CANADA SWITZERLAND AUSTRALIA SWEDEN JAPAN NORWAY SINGAPORE DENMARK SAUDI ARABIA HONG KONG KUWAIT MALAYSIA NEWZEALAND QATAR U.A.E. KR WON THAILAND

84.90 139.03 120.78 88.29 95.86 90.28 13.45 1.05 15.43 68.63 16.20 22.64 10.92 308.00 28.32 67.11 23.31 23.11 0.08 2.81

84.70 138.70 120.50 88.09 95.64 90.07 13.42 1.04 15.39 68.47 16.16 22.58 10.90 307.27 28.26 66.96 23.26 23.06 0.08 2.80

84.48 138.32 120.14 87.86 95.38 89.83 13.38 1.04 15.35 68.29 16.12 22.53 10.87 306.47 28.18 66.78 23.20 23.00 0.08 2.80

Revaluation Rates Treasury Bills / PIBs / FIBs Holding Applicable for May 12, 2011

KASB 0-7days 12.10 8-15dys 12.25 16-30dys 12.45 31-60dys 12.75 61-90dys 13.02 91-120dys 13.15 121-180dys 13.40 181-270dys 13.50 271-365dys 13.70 2-- years 13.95 3-- years 14.03 4-- years 14.05 5-- years 14.06 6-- years 14.08 7-- years 14.08 8-- years 14.11 9-- years 14.13 10--years 14.13 15--years 14.45 20--years 14.70

BMA 12.05 12.50 12.40 12.70 13.00 13.15 13.42 13.55 13.74 13.90 14.01 14.04 14.05 14.09 14.09 13.75 14.08 14.12 14.40 14.65

ELXIR 12.10 12.30 12.65 12.79 13.02 13.20 13.41 13.57 13.71 14.00 14.00 14.05 14.06 14.12 14.13 14.06 14.07 14.12 14.47 14.72

GSL 12.15 12.40 12.65 12.90 13.00 13.22 13.42 13.52 13.71 13.90 14.01 14.02 14.03 14.04 14.10 14.08 14.09 14.12 14.50 14.80

ICSL 12.05 12.34 12.54 12.75 13.00 13.14 13.42 13.50 13.70 13.97 14.00 14.03 14.05 14.07 14.10 14.10 14.09 14.10 14.45 14.70

JSCM AvgRate 12.20 12.11 12.40 12.37 12.65 12.56 12.85 12.79 13.00 13.01 13.10 13.16 13.42 13.42 13.55 13.53 13.72 13.71 13.98 13.95 14.01 14.01 14.03 14.04 14.06 14.05 14.07 14.08 14.08 14.10 14.10 14.03 14.10 14.09 14.11 14.12 14.45 14.45 14.65 14.70

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

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

week month months months year years

0.24 0.30 0.76 0.81 0.70 0.03

0.99 0.34 -0.14 -0.05 -0.18 0.53

0.99 0.61 0.80 0.85 0.76 0.65

1.00 0.80 0.93 0.91 0.83 0.77

0.99 0.42 0.55 0.67 0.55 0.31

USD/CAD USD/CHF

-0.07 0.22 0.62 0.50 0.63 0.05

-0.80 -0.44 -0.79 -0.77 -0.66 0.07

-0.99 -0.45 -0.85 -0.86 -0.64 -0.10

Karachi Inter Bank Offered Rates (KIBOR) Karachi: The following are the Karachi Inter-Bank Offered Rates (KIBOR)12/05/2011 1WEEK

2 WEEK

1 MONTH

3 MONTH

6 MONTH

9 MONTH

1YEAR

2YEARS

BID

ASK

BID

ASK

BID

ASK

BID

ASK

BID

ASK

BID

ASK

BID

ASK

BID

ASK

ABLN 11.90

12.40

12.10

12.60

12.40

12.90

13.00

13.25

13.40

13.65

13.60

14.10

13.70

14.20

13.90

14.40

JSBL

11.95

12.45

12.25

12.75

12.50

13.00

13.25

13.50

13.75

13.60

14.10

13.70

14.20

13.80

14.30

ASPK

0.00

CIPK

11.90

12.40

12.10

12.60

12.50

13.00

12.80

13.05

13.20

13.45

13.30

13.80

13.50

14.00

13.60

14.10

DBPK 11.75

12.25

11.90

12.40

12.90

13.15

13.25

13.50

13.45

13.95

13.65

14.15

13.75

FBPK

14.25

11.90

12.40

12.20

12.70

12.50

13.00

12.95

13.20

13.30

13.55

13.60

14.10

13.70

14.20

13.90

14.40

FLAH 12.00

12.50

12.25

12.75

12.50

13.00

12.95

13.20

13.30

13.55

13.50

14.00

13.65

14.15

13.75

14.25

HBPK 12.00

12.50

12.20

12.70

12.50

13.00

13.25

13.35

13.60

13.55

14.05

13.70

14.20

13.80

14.30

HKBP 11.85

12.35

12.10

12.60

12.55

13.05

13.00

13.25

13.30

13.55

14.05

13.70

14.20

13.80

14.30

NIPK

12.10

12.60

12.30

12.80

12.85

13.35

13.20

13.45

13.30

13.55

13.40

13.90

13.50

14.00

13.60

14.10

HMBP 12.00

12.50

12.25

12.75

12.50

13.00

13.25

13.35

13.60

13.55

14.05

13.75

14.25

13.85

14.35

SAMB 11.90

12.40

12.15

12.65

12.50

13.00

13.25

13.35

13.60

13.50

14.00

13.65

14.15

13.75

14.25

MCBK 12.00

12.50

12.30

12.80

12.50

13.00

13.10

13.35

13.60

14.10

13.70

14.20

13.80

14.30

NBPK 11.85

12.35

12.20

12.70

12.40

12.90

13.15

13.30

13.55

13.60

14.10

13.70

14.20

13.80

14.30

SCPK

11.90

12.40

12.15

12.65

12.45

12.95

13.20

13.25

13.50

14.00

13.65

14.15

13.80

14.30

UBPL 11.80

12.30

12.00

12.50

13.00

12.90

13.15

13.25

13.50

14.00

13.60

14.10

13.90

14.40

AVE

12.42

12.18

12.68

12.49

12.99

12.97

13.22

13.31

13.56

13.54

14.04

13.68

14.18

13.79

14.29

11.92

Friday, May 13, 2011

The Financial Daily International Vol 4, Issue 186

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

S. Muneer Hussain Rizvi

Asim Abbas Ashary, CPA

Khurram Shehzad, CFA

Akhtar M. Zaidi, FCA

Prof. Zakaria Sajid (KU)

Dr. A. Hadi Shahid, FCA

Zahid Bukhari SVP HBL (retd)

Muhammad Arif

Ismat Sabir Head office

111-C, Jami Commercial Street 11, Phase VII, DHA Karachi Telephone: 92-21-35311893-6 Fax: 92-21-35388428 URL: www.thefinancialdaily.com Email Address: editor@thefinancialdaily.com

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

Long live Pak-China friendship The formal inauguration of Chashma-II further consolidates the ties between Pakistan and China and also prompts many Pakistanis to ask Uncle Sam a question are you a friend or foe? India has been mincing words but has virtually sabotaged Iran-Pakistan-India (IPI) gas pipeline project. In reward it has received nuclear technology for civilian use. However, the US not only refused to reciprocate Pakistan but also tried to create hurdles in the construction of nuclear power plants by China. The US government feels a bit odd when asked the question, are you a friend or foe? The US continues to say that Pakistan is a frontline partner in war against terror but not willing to become a partner in the economic development of Pakistan. The US is ready to give money for the procurement of armaments but not willing to give greater access to Pakistan made textiles and clothing products. The disbursement under Kerry-Luger arrangement has also remained paltry. Most of the money which has been paid to Pakistan falls under Coalition Support Fund, which does not go towards any developmental project but is the compensation for using Pakistani airbases etc. The US diplomatic circles also do not appreciate Pakistan's friendship with China. They consider it a threat for India. China has helped Pakistan financially and technically in the construction of Gwadar port. To under mine the importance of this project India, under the blessing of United States is playing a major role in the construction of Chabahar port in Iran and railways and roads to link the port to Central Asian countries. One is completely lost on the logic that construction of IPI would benefit Iran, but does Chabahar gives Iran the power to control the movement of goods to and from Central Asian countries? One of the conspiracy theories suggests that the US has closed Osama's chapter only to give a little tough time to China. For decades the west has been accusing China for gross violation of human rights. One of the reasons to involve India in the reconstruction of Afghanistan is to get closer to the Chinese as well as Iranian borders. One also fails to understand the logic that the US is making billions of dollars investment in China but often terms it a genie getting out of the bottle. China is still considered a symbol of communism and weakening it is part of cold war era legacy. Unfortunately, invasion on Afghanistan became one of the reasons for the disintegration of USSR. The United States has often tried to drag China into some kind of confrontation. China's focus on its economy is likely to make it world's largest economy sooner than later. While, the US loves to add countries to its periphery, it does not like China making friendship with other countries simply by helping them in overcoming their economic woes.

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.

Bin Laden case puts Pak armyâ&#x20AC;&#x2122;s dominance in focus Michael Georgy hen Pakistan's army officers are not watching their old rival India or fighting Taliban insurgents, they are busy running a business empire that gives them an iron hold on society. As one saying goes here: "Every country has an army, Pakistan's army has a country." Pakistan's 600,000-strong army has financial muscle flexed across industries from oil and gas to cereals and real estate -- it even set up its own airline. Its Inter-Services Intelligence (ISI) spy agency is so pervasive it is described as a "state within a state". "The expanse of the military is unimaginable," said Ayesha Siddiqa, author of "Military Inc", which shines a light on the eye-popping sway that the army has beyond the nation's security affairs. "They even run bakeries. From micro-level activity to macro-level activity they are everywhere." You don't have to look far beyond the capital for a glimpse of the military's wealth. In one suburb, workers water lawns and trim hedges on farms where both active and retired generals live in swanky villas. Given its grip on security, society and its stunning economic reach, no wonder many find it hard to believe that the army did not know that the world's most-wanted man had been living for years just 50 km (30 miles) from Islamabad. The government has rejected allegations that the killing of Osama bin Laden by US special forces in the gar-

rison town of Abbottabad on May 2 showed Pakistani incompetence in tracking him down or complicity in hiding him. But dislodging suspicion that the army knew all along where the al Qaeda leader was holed up may be difficult given the army's vast sphere of influence. The military has ruled Pakistan for more than half of its short history and, although it is not ruling the country now, its far-reaching clout maintains a lop-sided balance of power between the security establishment and the civilian government. DOUBT This generates permanent doubt about the stability of the nuclear-armed country, which has seen three military coups since it was carved out of India in 1947. "The military may be reassuring to Pakistanis in some ways. But it can have an opposite affect," said a Western diplomat in Islamabad. "A brighter future depends on a functioning government, a country that is opening up and looking for international trade, not looking inwards." "From the perspective of building democratic institutions it is worrisome when you have these large military organisations that basically cover large segments of the economy." Despite its business empire, which Siddiqa estimates is worth up to $15 billion, the military is a huge drain on the country's finances. She says about 26 percent of government expenditure flows to the defence budget. Dependent on an $11 billion International Monetary Fund loan to keep the economy afloat, the govern-

ment is already struggling to deliver on crucial tax and energy sector reforms that would bring fiscal discipline. Turning the tables on the military is highly unlikely in the South Asian nation where a civilian government has never served out its full five-year term. The military also receives billions of dollars in aid from Washington, even though it is reluctant to go after groups like the Pakistan-based Haqqani network, an Afghan Taliban faction fighting US forces in Afghanistan. Pakistan sees the Haqqanis as an asset to counter Indian influence in Afghanistan. Since writing her book in 2007, Siddiqa has noticed that the military now asserts intellectual control over Pakistan by influencing the media and keeping its ideological options open. "If there are some segments of the ISI who are sympathetic to bin Laden, or to militancy, then effectively it keeps them relevant to the radicals, the militant right-wing community," she said. "The liberals think the military is secular, therefore they remain relevant to them too. Whatever way you look at them they continue to be and they will always remain in fashion." EFFECTIVE Some, like former Finance Ministry adviser Sakib Sherani, say the military's influence is exaggerated and that they are not always effective, so it is possible that bin Laden lived in Abbottabad undetected. He laughs when recalling a joke that went around after the Taliban insurgents began major suicide bombings and shooting attacks in Pakistan in 2007: a guy with a cannon tied to the roof of his car stops at a government

security checkpoint and is asked if he has anything to declare, and he says 'no'. The military came under rare public criticism after revelations that bin Laden had spent possibly over seven years in Pakistan, about a two-hour drive from ISI headquarters. His presence angered the United States, as well as ordinary Pakistanis, whose respect for the military was riding high after army-led relief operations during massive floods last year. The bottom line for many, however, is that the military is the only effective Pakistani institution in a crisis, unlike the country's succession of inept and corrupt civilian governments. "The reality is that civilian institutions are not about to be empowered any time soon and, in these circumstances, if the army is weakened you are left with nothing -- a potential Somalia," said Kamran Bokhari of global intelligence firm STRATFOR. Pakistanis who are likely to be waiting around for proper government services, better schools and jobs for years to come can always turn to the army's Fauji Foundation, which says it provides welfare services to about 10 million people. There is also the Army Welfare Trust, which among other things owns about 50 percent of Askari Bank, one of Pakistan's leading banks. Asked why she does business there, rather than with well-known foreign commercial banks or other local ones in Islamabad, government employee Maha Jibeen was quick to answer. "It belongs to the army. That means it is run efficiently."-Reuters

Political change in Egypt to boost Nile cooperation A

fter decades of mistrust and saber-rattling, the fall of Hosni Mubarak will improve Egypt's ties with Ethiopia and boost the chances of a new deal to share the Nile's waters. The two most populous countries in Africa after Nigeria have been at loggerheads over the Nile's precious water for years, with Egypt unwilling to budge from colonial-era treaties dating back to 1929 that give it two-thirds the river's annual flow. Ethiopia, however, is busy building a mega dam on its share of the river. Eighty-five percent of the Nile's water originates in Etiopia and it is exploiting the river to try and reduce chronic power shortages. Before Mubarak resigned in February, Ethiopia and five other Nile Basin states had agreed a new treaty which would reduce Egypt's share of the waters and remove its veto over upstream projects which could slow the flow. While Egypt and Ethiopia signed a cooperation agreement in 1993, relations have been at low ebb since 1995 following an assassination attempt on Mubarak by Islamist gunmen during a visit to Addis Ababa. Ethiopian Prime Minister Meles Zenawi has accused Egypt of supporting rebels to destabilise the country -- a charge Egypt denies -- and said it could never win a war over the Nile. But the mood has now changed, and this rapprochement will be reinforced by the visit of Egyptian Prime Minister Essam Sharaf and a team of ministers to Addis Ababa this week. He is due to meet Meles on Saturday for talks. "Any new government in Egypt, whatever the actors and ideology will be, will have to redefine from scratch its Nile policies, namely its foreign policies towards the neighbours," said Ana Cascao, a Nile expert at the Stockholm International Water Institute. "There are already clear signs by the new authorities that they understand that Mubarak has failed badly to promote trust and confidence with the Nile neighbours

-- and that a new relationship must be built," she said. CHARM OFFENSIVE Threatened by rising temperatures and a growing population, Egypt's water needs could exceed supply by as early as 2017, according to experts. In one of the most apparent shifts in how Egyptian officials are handling the Nile Basin dispute, the government has reached out to researchers and non-governmental organisations to help frame Egyptian policies in Africa. The new administration has also refrained from openly criticising the terms of the new Nile treaty. "Cooperation with Nile Basin countries is an imperative necessity and there is no alternative to it," the new Water Resources and Irrigation Minister Hussein el-Atfi said. "There should be focus in the upcoming period on boosting the use of such resources to benefit all states in the basin." Beside Ethiopia, Sharaf is also visiting Uganda to attend President Yoweri Museveni's inauguration. His trip follows a charm offensive by a delegations made up of activists, former diplomats and politicians to both Uganda and Ethiopia. The initial visits were successful to the extent Ethiopia said it would hold off ratifying the new Nile treaty until there was a new elected government in Egypt. Sharaf's first foreign visit after being appointed was to neighbouring Sudan, which had also objected to the new Nile treaty terms struck by the six upstream countries. The countries Sharaf has chosen to visit first show he is following through on his pledge to make cooperation with Nile Basin states and Africa one of his main foreign policy goals. Under Mubarak, Europe was a favoured destination for officials. "When the system changed, it was natural for the

new people to come in with a different vision," said Dia El-Din El Quosy, a former deputy minister of irrigation and former chairman of the National Water Research Centre. AFRICAN DEVELOPMENT Some Egyptians blame the current state of affairs on Mubarak's lack of engagement with Africa. Egypt is the most populous Arab country, but its regional influence is seen to have faded after three decades of Mubarak's rule, during which its foreign policy and economic ties were aligned more with the United States and Europe. "If we are talking benefits, our interests are not with Israel but with Africa, with whom we share resources," said Sally Moore, a member of the Egyptian Social Democratic Party, during a visit to Ethiopia earlier this month. "With him we've lost our status in Africa and Arabia. Before killing us, he killed our dignity," she said. Though the tough rhetoric has been set aside for now, however, Egyptians are still wary of a treaty that does not ensure a majority stake on the river's flow. "All of us know that the (water) share of every Egyptian is less than the global average. We are pushing to ensure that Egypt gets the same or more, but not less," said Hamdeen Sabahy, an Egyptian presidential candidate. But at least the renewed dialogue between Egypt and the Nile Basin states is creating hope that some kind of consensus will emerge on how best to exploit the world's longest river. "There is a new determination and a new thrust forward. This official visit will hopefully follow this same path," Safwat Abdel-Dayem, secretary general of the Arab Water Council, told Reuters. "There is so much more to gain from mutual cooperation. If Nile Basin states work together, we can truly push African development forward."-Reuters

China's fear-pendulum swings from inflation to growth Langi Chiang and Aileen Wang

arket sentiment about China is lurching from worries about out-of-control inflation to fear of an unexpectedly sharp growth slowdown. As is so often the case in China, the truth is likely to be much more evenly poised. Growth is slowing, but it is hardly falling off a cliff. And that slowdown was, after all, the desired outcome of official actions to tame inflation. What's more, waning inflation will soon give the government leeway to take its foot off the policy-tightening brake and prevent the world's second-largest economy from decelerating too suddenly. China reported last Wednesday that industrial output increased 13.4 percent in April year on year, more than 1 percentage point lower than both the previous month's pace and the consensus forecast of economists polled by Reuters. With markets still reeling from last week's sharp drop in commodity prices, the Chinese data was seized on by jittery investors. For two straight days, oil prices, equities and other risky assets

have come under heavy selling pressure. Jim O'Neill, chairman of Goldman Sachs Asset Management, captured the mood on Thursday. "It is my judgment that the Chinese economy is slowing down more than people realise," he said. "The data we saw this week is confirmation in my opinion that China is slowing down." Growth will slow to 8 percent, down from 10.3 percent last year, while inflation will also fade, he said. PENDULUM OF FEAR Just a month ago, investors were fixated on Chinese inflation, which appeared to be trending higher despite a battery of interest rate increases and lending restrictions. The rapid swing of the pendulum of fear from inflation to growth exposes one fundamental truth about China. Official data is patchy and of dubious quality, regularly generating more heat than light about the state of the economy. And given the importance of China in driving global growth, that lack of clarity makes for volatile markets. The difficulty in reading China's latest data was underscored by the varying reactions of analysts to consumer price inflation, which edged down to 5.3 per-

cent in the year to April from 5.4 percent in March. Some thought the government must show no let-up in tightening. Others said a pause was in order. And a few suggested that the next move would be an easing. "Historical experience tells us it is not easy to quickly cool inflation from a level above 5 percent. It may rebound in some months and remain a challenge for the government," said Qiao Yongyuan, an economist at CEBM in Beijing. Expecting two more interest rate rises by the middle of the year, Tao Wang and Harrison Hu from UBS in Beijing said in a research note: "We do not think we are at a policy inflection point." But others instead focused on the drop in money growth. The broad M2 measure of money supply fell to 15.3 percent in April year on year, the lowest in 29 months, alleviating inflationary pressures. "Inflation has basically peaked, and will start to fall in the third quarter. That means China's interest rate rise is approaching its end," said Li Xunlei, chief economist of Guotai Junan Securities in Shanghai. Dong Xian'an, chief economist of

Peking First Advisory, said: "With price rises easing and the economic growth slowing, China will loosen its tightening to help achieve a soft-landing." Representing an extreme view, Wang Jian, a researcher with the National Development and Reform Commission, China's top economic planner, predicted that Beijing would actually cut interest rates in the second half. A MIDDLE PATH Investors and analysts have the luxury of disagreeing and betting in opposite directions. Policy-makers do not have that option. There have been disputes over how aggressively they should turn their fire on inflation. But they must settle on a relatively unified course of action at the end of the day. Given the uncertainty about China's near-term momentum, a middle path seems most likely: the government will neither intensify tightening nor relax its stance. "I think policy tightening is approaching its end. Policy-makers may take a wait-and-see approach," said Zhu Baoliang, chief economist at State Information Centre, a top government think-tank.-Reuters

Friday, May 13, 2011

South East Asian stocks

Mostly pull back amid commodity jitters KSE-100 Index Opening Closing Change % Change Turnover (mn)

12036.36 11962.18 74.18 0.62 64.35

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

3224.60 3207.81 16.79 0.52 1.94

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

2701.64 2674.03 27.61 1.02 0.03

Major Gainers

Symbol

Change

BATA FZTM MTL PAKT CPSL

437.46 300.00 520.99 95.80 50.53

11.80 11.05 4.92 4.55 2.40

Major Losers

Symbol

Change

NESTLE 3525.56 ULEVER 5177.18 SRVI 175.54 PECO 94.00 NRL 329.88

-73.92 -8.21 -5.60 -3.98 -3.15

Top 5 Volume Leaders

Symbol

Close Vol (mn)

JSCL ANL BAFL LOTPTA DGKC

6.87 5.82 10.77 15.56 22.75

9.44 8.72 6.72 3.39 3.06

Active Issues Plus Minus Unchanged

94 156 115

Sector Updates FERTILISER 000 tonnes

Urea Offtake (Jan to Feb 11) 807 Urea Offtake (Feb 11) 413 Urea Price (Rs/50 kg) 1,195 DAP Offtake (Jan to Feb 11) 128 DAP Offtake (Feb 11) 69 DAP Price (Rs/50 kg) 4,041

AUTOMOBILE ASSEMBLER PAK SUZUKI MOTOR Units Production (July 10 to Feb 11) 53,036 Sales (July 10 to Feb 11) 52,067 Production (Feb 11) 5,883 Sales (Feb 11) 6,954

INDUS MOTOR CO Production (July 10 to Feb 11) 33,832 Sales (July 10 to Feb 11) 32,991 Production (Feb 11) 4,754 Sales (Feb 11) 4,698

HONDA ATLAS CAR Production (July 10 to Feb 11) 10,834 Sales (July 10 to Feb 11) 10,444 Production (Feb 11) Sales (Feb 11)

1,555 1,665

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

186 133 0 20

BANKING SECTOR Scheduled bank (Rs in mn) Deposit (March 25,11) 5,046,487 Advances (March 25,11) 3,118,444 Investments (March 25,11) 2,202,311 Spread (Feburay 11) 7.51%

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

1,300 183 96 14 795 129 4,044 614 38 5 5,007 680 98 15

PRICES (Ex-Refinery)

MS (1 Apr 11) MS (1 Mar 11) MS % Chg Kerosene (1 Apr 11) Kerosene (1 Mar 11) Kerosene % Chg JP-1 (1 Apr 11) JP-1 (1 Mar 11) JP-1 % Chg HSD (1 Apr 11) HSD (1 Mar 11) HSD % Chg LDO (1 Apr 11) LDO (1 Mar 11) LDO % Chg Fuel Oil (1 Apr 11) Fuel Oil (1 Mar 11)

59.35 53.88 10.15% 68.95 63.31 8.91% 70.88 63.54 11.55% 75.02 66.53 12.76% 65.27 60.96 7.07% 56,777 53,252

Miners, oils push European shares to lower close

KSE fails to sustain 12k level Nawaz Ali KARACHI: Having witnessed some positive activities, Karachi Stock Exchange witnessed bearish mode on Thursday as investors preferred to offload their holdings following decline in global stock markets. The benchmark KSE-100 index fell by 74 points to close at 11,962 points, KSE-30 index lost 53 points to close at 11,601 points and KSE all-share index

was down by 49 points to close at 8,316 points. "Plunge in regional markets amid fall in international commodities prices shattered local investors' sentiments", said Samar Iqbal equity dealer at Topline Securities. The regional stock markets fell on Thursday following decline in international commodity prices where US Crude fell below $100 per barrel. Court verdict on holding two offices by President also fueled

Nikkei down on commodities TOKYO: Tokyo stocks fell on Thursday, led by declines in energy and commodity shares after sharp overnight falls in commodities prices, offsetting a strong performance by bellwether Toyota Motor Corp . Analysts said a commodities rout was one of the reasons making hedge funds avoid risk assets, causing a sell-off in futures towards the market close. "The market losses widened as there have been selling orders in futures contracts in the afternoon," said Hiroichi Nishi, general manager at SMBC Nikko Securities. "Not so big orders, but constant small orders ended up dragging down the whole market." Market analysts also said May has been one of the worst months for the average hedge fund due to redemption timing. "If their clients, who close their books in June, ask to redeem their funds, now is the timing," said Eiji Kinouchi, a chief technical analyst at Daiwa Securities Capital Markets. On Thursday declines were led by trading houses such as Mitsubishi Corp, Japan's biggest commodity trader, and resource-related shares such as Inpex Corp, Japan's biggest oil and gas developer, with Mitsubishi shedding 2 per cent and Inpex down 3.6 per cent. Toyota Motor Corp, the most actively traded share by turnover on the Tokyo bourse's main board, jumped 3.1 per cent to 3,370 yen after saying output would begin recovering as much as two months earlier than it had previously expected

as parts makers come back on line, offsetting poor quarterly earnings. Toyota said it expects to give an earnings forecast by mid-June. The Nikkei fell 1.5 per cent to 9,716.65 while the broader Topix index shed one per cent to 849.34. The market was trapped between two crucial technical levels, with support seen at its 25-day moving average of 9,689 while resistance loomed at its 200-day moving average of 9,823. RESOURCE STOCKS DOWN Last Friday, the Nikkei fell 1.5 per cent after a rout in commodities and analysts said the stock market would continue to be extremely vulnerable to moves on the commodities market. "Another sell-off in commodities could be sparked by even the slightest negative factor and this poses a huge risk to all holders of risk assets, making them extremely nervous," said Hideyuki Ishiguro, a supervisor at Okasan Securities. Japanese shares have lost some 7 per cent since the March 11 earthquake, while Asian stocks outside Japan have gained more than 6 percent over the last two months. The mining subindex led decliners, shedding 3.2 per cent. Overseas investors bought a net 51.0 billion yen ($629 million) in Japanese stocks in the week to May 7 and bought a net 109.8 billion yen the week before that, remaining net See # 16 Page 11

selling pressure, she added. Market witnessed some mix activities during the first 30 minutes of the session moving on both sides but then selling mainly by local institutional investors pushed the index into the red zone throughout the remaining part of the session. The index breached 12,000 levels and at about 1:56 PST touched an intra-day low of 11,945 points (-ve 90). Apart from fall in international stock markets, experts said

Growth concerns hit FTSE LONDON: Britain's FTSE 100 was rattled on Thursday as global growth concerns triggered a fall in commoditylinked stocks and boosted appetite for defensive assets. Miners and oil stocks retreated as commodities continued their worst rout since 2008, after China surprised analysts by lifting bank reserve requirements by 50 basis points on Thursday, a day after data showed China's factory output growth in April eased much more than expected. London's blue chip index, which is heavily weighted towards commodity stocks, closed down 31.04 points or 0.5 per cent at 5,944.46, compounding a 0.7 per cent fall on Wednesday to 5,976.00. Martin Dobson, head of trading at Westhouse Securities, said. "I don't believe there is sufficient growth stories out there to push the index any higher than it has been so far this year (at 6,105.77)." The FTSE, however, found support near its April 2011 lows of around 5,860, lifted by data from the United States which showed a decline in jobless benefit claims last week, while retail sales suggested consumer spending in the first quarter might have been stronger than initially thought. "We remain rangebound (250 points since April) at the moment because investors aren't getting the interest or the earnings anywhere else other than the equity market," Westhouse's Dobson said. CORPORATE GROWTH WOES SuperGroup, the British See # 15 Page 11

HK, China shares slip HONG KONG: Hong Kong and China shares fell on Thursday as the resources sector suffered from another selloff in commodities, while a jump in Internet firm Tencent kept the Hang Seng above a key chart support level. Mining companies and oil producers led losses after an overnight rout in prices of raw materials they produce pushed the Reuters/Jeffries CRB index, a broad measure of commodities performance, down 3 percent. Hong Kong's Hang Seng index closed down 0.9 per cent at 23,073.8, holding just above its 200-day moving average, a level it had bounced off before heading to a 2011 peak in March following the Japan earthquake. A 4.2 per cent rally in Tencent Holdings was almost singlehandedly responsible for helping the benchmark hold above the 22,937.5 level. Traders attributed part of the stock's gains to a rush to cover shortpositions in the counter that had built up before its quarterly results. Tencent reported a record profit after the close of trading on Wednesday. Shortpositions as a percentage of total turnover shares rose to as high as 45 per cent last Friday,

exchange data show. "We're also seeing some institutional money come into Tencent today," said Rafi Mohideen, head of Asian trading at Instinet, adding that longterm investors were looking to buy into the dip seen at Aprilend. Tencent was the most actively traded benchmark constituent on the day as turnover on the Hong Kong stock exchange dropped to HK$67 billion, about 7 per cent below the average seen over the past 20 sessions. "I expect things to really get going only by next week when we'll have a full five days of trading after almost a month," said Mohideen. SHANGHAI LOWER Resources-related counters also led mainland Chinese stocks lower on Thursday, with uncertainty over April economic data doing little to dispel concerns of further policy tightening. The People's Bank of China also sold 40 billion yuan ($6.2 billion) of three-year bills at regular open market operations on Thursday, signalling the central bank will restart the use of long-term bill sales to drain cash from the financial system. Energy counters underperformed the broader Shanghai

market as volatile oil prices cut appetite for the sector. The subindexes for energy shares and the materials sector index fell 2.0 and 2.6 per cent, respectively. "It is very difficult to imagine what could spur the market forward right now," said Wen Lijun, an analyst with Nanjing Securities. PetroChina Co Ltd, China Petroleum & Chemical Corp (Sinopec) and China Shenhua Energy Co Ltd were among the biggest weights on the benchmark, losing 1.3, 1.0 and 1.9 percent, respectively. PetroChina, in particular, has lost 9.4 per cent since hitting a 5-month high on April 11. It has remained technically oversold since May 3 with its 14day relative strength (RSI) index value currently at 13.8. The benchmark Shanghai Composite Index lost 1.4 per cent to finish at 2,844.1, a 3month closing low, pulling the index further below its 125-day moving average, currently at 2,892.4. A-share turnover increased for the third straight day, hitting RMB 11.4 billion, but remained under its 20-day moving average for the sixteenth straight session, now seen at RMB 12.3 billion.-Reuters

that investors were waiting for the outcome of the meeting between the Government of Pakistan and the International Monetary Fund (IMF) in Dubai for the release of next tranche and review budgetary measures. Further, the ongoing political situation in the country after Osama killing too has kept the investors worried. Investor participation too remained low during the day as 64.3 million shares exchanged hands which was 20.1 million

shares less as compared to a turnover of 84.4 million shares on Wednesday. Volumes confined to low cap stocks as Jahangir Sidd. Company was the top traded stock of the day with 9.44 million shares followed by Azgard Nine with 8.72 million shares and Bank Alfalah with 6.72 million shares. Out of total 365 active issues; 156 declined and 94 advanced while 115 issues remained unchanged.

Indian shares drop 1.3pc MUMBAI: Indian shares declined 1.3 per cent on Thursday, ignoring robust industrial output growth in March, and joined the sell-off in world equities as weaker commodity prices weighed on investor sentiment for riskier assets. Industrial output grew at a much faster-than-expected pace in March, allaying fears of a slowdown in the economy that will allow the central bank to continue with rate hikes to control stubbornly high inflation. Financials led the losses on continued concerns of rising interest rates, with the sector index losing 1.6 percent. The 30-share BSE index closed 1.34 per cent, or 249.17 points, lower at 18,335.79 points, with 26 components declining. The index had briefly turned positive immediately after the industrial output data. "We will continue to see volatile trade for some time now, until commodities, mainly oil settles down," said Prasanth Prabhakaran, president of retail broking at IIFL. "Oil within $90 to $100 is comfortable, but beyond that it is a worry for our country." Oil slipped to around $112 a barrel on Thursday, extending the previous session's sell-off. Deven Choksey, managing director and CEO of brokerage KR Choksey Shares, said the market would drag for a while as there were no positive triggers in sight. Concerns over hardening interest rates have led to some

caution from foreign institutional investors, who are key drivers of Indian stocks. They have been sellers in nine of 12 sessions to May 10, offloading more than $1 billion of Indian equities in the period. The BSE main index is down 10.6 per cent year-to-date, lagging MSCI's emerging equities index which is only down 0.3 per cent in 2011. The 50-share NSE index ended the day down 0.3 percent at 5,546.25 points. Losers outpaced gainers in the ratio of 2.4 to 1, on a volume of 605 million shares on the NSE, lower than its 90-day daily average volume of 641 million shares. Top lender State Bank of India shed 1.3 per cent, while leading private lenders ICICI Bank and HDFC Bank dropped 2.3 per cent and 0.9 per cent, respectively. Mortgage lender Housing Development Finance Corp was down 2.8 per cent. Metal producers dropped as base metal prices slumped in international trade. Sterlite Industries, Hindalco and Tata Steel declined between 1.6 per cent and 5.1 per cent. Copper tumbled to a fivemonth trough as investors headed for the exit, fearing slower economic growth and demand from top consumers China and the United States. The MSCI's world equity index fell one per cent by 1029 GMT, while its emerging market sub-index slid 1.6 per cent.Reuters

US stocks mid-day

Wall Street flat on commodities rebound NEW YORK: US stocks recovered from initial declines on Thursday in a choppy session as commodity prices kept the market in flux while a downgrade of Goldman Sachs dragged down financial shares. Commodities rebounded after US data showed a decline in jobless benefit claims last week and a revision to retail sales data suggested consumer spending in the first quarter might have been stronger than initially thought. US crude futures advanced 0.5 per cent after a drop of more than one per cent and the S&P energy sector rose 0.1 per cent after falling more than one per cent. The sector has tumbled 7.9 per cent this month after it gained 16.3 per cent in the first quarter to propel the benchmark S&P 500 to a 5.4 per cent gain. "Commodities have had a great run-in here. We are just going to get some volatility going forward, both in the up direction and down direction," said Wayne Schmidt, chief investment officer at Gradient Investments in St. Paul, Minnesota. Financial shares fell after banking analyst Dick Bove of Rochdale Securities put a "sell" rating on Goldman Sachs Group and reduced the price target on the stock to $120 from $163, citing litigation worries. Goldman shares slumped 4.5 per cent to $141.17 as volume topped the 50-day moving See # 14 Page 11

InvestCap Market new corporate member of KSE Staff Reporter KARACHI: Karachi Stock Exchange (KSE) has inducted Invest Capital Market Limited as corporate member effective May 16, on the nomination of Invest Capital Investment Bank Limited. According to a KSE circular, Tariq Mehmood will be nomine director of the newly admitted member.

Dhiyan

SENTIMENTS PREVAIL OVER FUNDAMENTALS Haji Ghani Haji Usman, Chairman Ghani Osman Securities

I think market would move around 12,000 levels in the coming days but investor participation is likely to remain on the lower side. Investors are recommended to invest in dividend yielding and good earnings stocks belonging to banking and textile sectors. Market would be mix today.

Iqbal Ismail, Chairman ACE Securities

Keeping in view the prevailing political situation after the killing of Osama, market would continue to remain under pressure moving forward. Investors are advised to stay on the sidelines. A positive outcome from the dialogue between US and Pakistan would be the factor that can trigger the market. Market would remain bearish today.

Friday, May 13, 2011

Market

KSE 100 Index

Symbols

Volume

64,353,314

Value

1,549,825,677

Trades

38,347

Advanced Declined Unchanged Total

Current High Low Change

94 156 115 365

All Share Index

11,962.18 12,054.16 11,945.69 i74.18

Current High Low Change

8,316.13 8,379.06 8,306.27 i49.81

OIL AND GAS

Paid up Cap(mn)

Company Attock Petroleum Attock Refinery BYCO Petroleum

Open

High

High Low 1,491.91 1,471.78 Total cos Defaulter cos 12 P/BV (x) ROE (%) 3.35 32.54 Low

Close Chg

Last 60 days High Low

Volume

% Change -1.02 5-Day High 1,489.31 5-Day Low 1,473.55

2010 Div BR (%) (%)

2011 Div BR (%) (%)

6.78 376.36

377.00 374.50 374.96 -1.40

45142

387.98

321.00

300

853

4.07 125.00

125.49 124.05 124.13 -0.87

148495

129.40

98.25

202151

10.43

7.93

- 23.43

8.44

8.50

8.30

8.35 -0.09

20B115.00

Mari Gas Company

735

4.22 102.37

103.25 101.65 103.14

2832

127.50

98.50

National Refinery

800

4.56 333.03

334.40 329.60 329.88 -3.15

94557

356.50

254.00

200

Oil & Gas Development 43009

9.96 149.07

149.55 147.00 147.16 -1.91

809154

170.44

128.21

- 30.00

Pak Petroleum

11950

7.48 206.73

206.75 204.25 204.66 -2.07

501153

216.50

190.10

20B 50.00

2365

7.19 328.23

328.50 325.65 326.17 -2.06

440440

332.45

277.09

255

-100.00

7979

110.50

81.23

228151

294.49

265.00

Pak Oilfields Pak Refinery Limited

350 47.46

P.S.OSPOT

1715

Shell Gas LPG

226

Shell Pakistan

685

86.06

4.00 282.46 -

23.76

7.45 212.07

85.99

84.65

0.77

84.96 -1.10

282.51 279.20 279.86 -2.60 24.89

23.75

23.81

0.05

210.07 209.53 209.60 -2.47

- 80.00

71617

30.45

22.69

4349

217.90

186.83

120

CHEMICALS Performance of SR Chemicals Index Open 1,829.13 Turnover 8,424,648 P/E (x) 8.88

High Low 1,839.40 1,819.51 Total cos Defaulter cos 36 6 P/BV (x) ROE (%) 3.11 35.00

Close 1,828.06 Listed cap 52,251.88 mn Payout (%) 48.81

Change -1.07 Market cap 379,347.35 mn Div Yield (%) 5.49

% Change -0.06 5-Day High 1,837.27 5-Day Low 1,802.58

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Last 60 days High Low

BOC (Pak)

250

7.00

92.00

94.10

91.10

93.00 1.00

4615

98.35

82.00

Clariant Pak

341

4.89 160.12

160.99 159.16 160.08 -0.04

2724

206.79

140.00

135

25B

Company

2010 Div BR (%) (%)

Dawood Hercules

4813

3.68

63.98

64.00

63.00

63.38 -0.60

117268

294.00

56.10

1996

2.26

2.35

2.21

2.26 0.00

22680

3.35

2.10

Descon Oxychem Ltd.

1020 11.34

7.81

7.87

7.60

7.71 -0.10

258850

9.60

6.00

Dewan Salman

3663

2.31 -0.03

166772

198.00 196.10 196.29 -1.72

Engro Corporation Ltd

3933 6635

Fatima Fertilizer

22000

Fauji Fertilizer

8482

Fauji Fert.Bin Qasim Ghani Gases Ltd ICI Pakistan Ittehad Chemical Nimir Ind Chemical

11.41

12.56

8.69 140.19 6.25

42.07

725

9.89

12.08

8.55 154.92

3.10

2.20

524716

238.50

189.00

11.50

2.45

11.35

2.29

11.40 -0.01

144459

13.95

10.75

20B

- 27.5R

12.63

12.52

12.54 -0.02

111266

13.60

141.50 140.06 141.21 1.02

734940

154.49

10.75

108.00

130

25B 45.00

42.05

41.70

41.74 -0.33

2188325

43.89

37.86

12.20

11.75

11.77 -0.31

90217

14.49

10.43

155.90 153.70 153.96 -0.96

75233

172.00

142.00

65.5

- 12.50

175

360

3.55

23.27

24.43

24.43 1.16

500

29.85

20.11

15142

4.35

15.62

15.70

15.52

15.56 -0.06

3388341

17.36

14.05

1106 10.52

2.46

2.50

2.40

2.42 -0.04

245207

3.40

2.10

2.24

2.30

2.29

2.29 0.05

1004

2.99

1.55

5.55

18.38

18.35

17.85

17.93 -0.45

478390

19.99

11.81

5.02

35.65

36.00

35.00

35.52 -0.13

2754

38.85

34.19

Shaffi Chemical

120 28.63

Sitara Peroxide

551 90

Wah-Noble

2.34

9341 1388

Lotte Pakistan

8.77 198.01

50 300B

2011 Div BR (%) (%)

Descon Chemical

Engro Polymer

FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,047.91 Turnover 190,983 P/E (x) 5.13 Company

High Low 1,085.17 1,047.33 Total cos Defaulter cos 4 1 P/BV (x) ROE (%) 0.38 7.47

Close 1,080.68 Listed cap 1,186.83 mn Payout (%) 25.28

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

707 411

6.90

15.53 38.53

16.53 39.30

15.35 38.80

16.53 1.00 39.00 0.47

174227 16756

Century Paper Security Paper

Change 32.76 Market cap 2,981.00 mn Div Yield (%) 4.93

Last 60 days High Low 17.50 39.90

13.85 34.00

% Change 3.13 5-Day High 1,080.68 5-Day Low 1,019.28

2010 Div BR (%) (%) 50

Open 682.99 Turnover 1,145 P/E (x) 4.94 Company Pak Int Cont. Terminal PNSC

Company Crescent Steel

565

Dost Steels Ltd Huffaz Pipe XD International Ind

Open

High

High Low 1,023.16 994.71 Total cos Defaulter cos 7 1 P/BV (x) ROE (%) 1.02 33.10 Low

Close Chg

Close 1,009.58 Listed cap 3,596.11 mn Payout (%) 30.91

Change -1.98 Market cap 9,358.16 mn Div Yield (%) 10.07

Last 60 days High Low

Volume

2010 Div BR (%) (%)

Open

High

Low

Close Chg

Volume

Last 60 days High Low

70.30 26.05

71.00 27.00

70.79 26.25

71.00 26.64

600 545

76.25 34.00

27.43

27.70

27.51

27.51 0.08

10046

29.75

25.67

- 20.00

675 555 21.16 1199 8.80

1.88 11.84 49.44

1.88 12.24 49.80

1.70 11.51 48.52

1.86 -0.02 11.85 0.01 49.19 -0.25

32778 863 11141

2.55 14.90 54.50

1.70 11.10 45.81

25B 15.00 20B 15.00

Open 1,134.32 Turnover 242,414 P/E (x) 3.68 Company

Paid up Cap(mn)

Company

Paid up Cap(mn)

Open

High

Low

6.69 -

2.60 51.56 2.17 14.58

2.69 53.00 2.20 14.50

2.57 52.01 2.11 14.06

Change 6.06 Market cap 63,330.19 mn Div Yield (%) 2.95

Close Chg

Volume

Last 60 days High Low

2.62 52.87 2.17 14.28

0.02 1.31 0.00 -0.30

39051 16674 4602 562

3.50 56.70 3.00 18.60

2010 Div BR (%) (%)

1828 866 858 182

Cherat Cement Dadabhoy Cement Dewan Cement

956 46.43 982 15.31 3891 -

9.68 2.00 1.50

9.75 2.00 1.58

9.74 1.90 1.41

9.75 0.07 1.99 -0.01 1.46 -0.04

6000 3560 18316

11.90 2.24 2.19

8.00 1.50 1.41

DG Khan Cement Ltd EMCO Ind

3651 30.33 350 -

22.84 1.80

23.11 1.90

22.67 1.66

22.75 -0.09 1.66 -0.14

3061169 510

27.18 3.27

21.20 1.66

20R -

Fauji Cement Fecto Cement

6933 502

7.29 5.91

4.05 6.50

4.35 6.85

4.16 6.40

4.23 0.18 6.85 0.35

1527161 64500

4.82 8.90

3.97 6.10

92R -

Flying Cement Ltd Gharibwal Cement

1760 4003

1.43 7.09

1.46 7.29

1.32 6.91

1.39 -0.04 6.93 -0.16

11753 3730

1.84 13.50

1.30 5.00

Haydery Const Kohat Cement

32 1288

0.44 6.30

0.59 6.74

0.35 6.25

0.35 -0.09 6.39 0.09

532 28614

0.90 7.87

0.32 5.11

13126 72.75 3234 5.80

2.95 70.59

3.02 71.59

2.90 70.40

2.91 -0.04 71.40 0.81

201895 677637

3.45 73.69

2.10 59.55

Maple Leaf Cement Pioneer Cement Shabbir Tiles

- 100R 50 - 122R

2011 Div BR (%) (%)

Al-Abbas Cement Attock Cement Balochistan Glass Ltd Berger Paints

Lafarge Pakistan Cmt. Lucky Cement

2.15 48.50 1.99 13.55

% Change 0.70 5-Day High 871.56 5-Day Low 857.14

5261 2271

2.05 4.97

2.15 4.90

2.05 4.70

2.06 0.01 4.74 -0.23

179812 3101

2.89 6.45

1.92 4.50

361

6.13

6.49

6.00

6.29 0.16

3921

8.50

5.13

- 100R

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 958.79 Turnover 140,977 P/E (x) 2.75

High Low 975.87 956.84 Total cos Defaulter cos 13 2 P/BV (x) ROE (%) 1.21 43.91

Close 960.24 Listed cap 3,043.31 mn Payout (%) 15.55

Change 1.45 Market cap 35,502.72 mn Div Yield (%) 5.66

% Change 0.15 5-Day High 960.53 5-Day Low 958.79

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Last 60 days High Low

Cherat Papersack ECOPACK Ltd

115 230

2.48 -

48.13 1.52

50.53 1.55

48.00 1.50

50.53 2.40 1.54 0.02

118094 5595

63.50 2.75

46.45 1.31

20 -

25B -

50R -

MACPAC Films Merit Pack Packages Ltd XD

389 2.71 14.00 47 12.78 28.34 844 18.08 108.00

13.95 13.50 13.59 -0.41 29.50 27.19 28.49 0.15 109.90 107.10 108.50 0.50

11542 3612 1407

15.21 32.00 130.75

3.55 26.50 103.01

32.5

Tri-Pack Films

300

163.90 162.00 162.03 -1.18

711

172.00

124.01

100

Company

6.32 163.21

2010 Div BR (%) (%)

2011 Div BR (%) (%)

INDUSTRIAL ENGINEERING Performance of SR Industrial Engineering Index Open 1,548.30 Turnover 79,030 P/E (x) 7.72

High Low 1,571.79 1,548.39 Total cos Defaulter cos 11 1 P/BV (x) ROE (%) 2.94 38.02

Company

Paid up Cap(mn)

Open

High

Low

Ados Pak

3.10

8.38

8.90

8.42

AL-Ghazi Tractor

215

Dewan Auto Engineering 214

3.88 224.60

Volume

Last 60 days High Low

0.08

2102

16.20

7.40

226.00 223.00 224.45 -0.15

1163

239.00

199.05

400

9.77

8.86

8.90

8.01

11.00

8.01

89.27

90.99

87.50

89.27

0.00

135

128.00

87.50

132

38.24

39.35

37.01

39.08

0.84

1394

62.00

37.01

12.5

Millat Tractors

366

525.00 517.70 520.99

4.92

52030

546.75

466.27

650

25B325.00

268

144.99

92.00

100

94.00

93.20

0.14

10000

8.21 -0.65

11938

94.00 -3.98

2.00

0.71

2010 Div BR (%) (%) 40 15

2011 Div BR (%) (%) -

Low

Close Chg

Close 1,128.77 Listed cap 6,768.53 mn Payout (%) 20.42

Change -5.54 Market cap 41,923.99 mn Div Yield (%) 5.55

Last 60 days High Low

Volume

9500 216.30 10512 153.93 500 37.99 87501 2.45 116056 4.90 2516 4.60 5285 11.40 605 284.90 1997 76.90 7866 25.50

180.00 120.30 31.24 1.50 2.82 3.11 9.00 205.51 60.00 20.50

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

% Change -0.49 5-Day High 1,134.32 5-Day Low 1,127.50 2011 Div BR (%) (%)

20B 15B 65.00 - 50.00 20B 10.00

15B -

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

60.05

Total Assets (Rs in mn)

14,069.28

MA (10-day)

15.30

Total Equity (Rs in mn)

4,894.56

MA (100-day)

16.03

Revenue (Rs in mn)

9,702.31

MA (200-day)

17.27

Interest Expense

1,141.10

1st Support

15.77

Profit after Taxation

42.32

2nd Support

14.97

EPS 10 (Rs)

0.599

1st Resistance

16.95

Book value / share (Rs)

69.25

2nd Resistance

17.33

PE 11 E (x)

Pivot

16.15

PBV (x)

0.24

CEPB closed up 1.00 at 16.53. Volume was 235 per cent above average (trending) and Bollinger Bands were 31 per cent narrower than normal. The company's loss after taxation stood at Rs118.961 million which translates into a Loss Per Share of Rs2.46 for the nine months of fiscal year (9MFY11). CEPB is currently 4.3 per cent below its 200-day moving average and is displaying a downward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into CEPB (bullish). Trend forecasting oscillators are currently bearish on CEPB.

Ghandhara Nissan Limited

FOOD PRODUCERS

Company

Paid up Cap(mn)

Abdullah Shah Ghazi Sugar 793 Adam Sugar 58 AL-Noor Sugar 186 Ansari Sugar 244 Bawany Sugar 87 Clover Pakistan 94 Dewan Sugar 365 Habib Sugar 750 Habib-ADM Ltd 200 Haseeb Waqas 324 J D W Sugar 539 Mehran Sugar 157 Mirpurkhas Sugar 84 National Foods 414 Noon Pakistan 48 Pangrio Sugar 109 Quice Food 107 Sanghar Sugar 119 Shahmurad Sugar 211 Shakarganj Mills 695

High Low 2,141.36 2,076.24 Total cos Defaulter cos 61 16 P/BV (x) ROE (%) 15.07 30.30

Open

High

Low

0.98 3.87 1.00 46.19 9.35 5.04 1.31 1.79 2.56 11.36 5.95 6.02 2.16 3.15 0.43

5.90 13.00 39.45 7.50 7.60 64.21 2.60 23.51 12.50 10.38 74.00 54.22 41.00 66.26 21.06 3.50 2.75 12.46 9.00 6.45

5.90 13.49 40.00 8.50 8.60 64.00 2.80 23.70 12.26 11.38 75.10 56.00 40.99 65.70 21.89 3.79 2.70 12.65 9.50 6.33

5.00 13.00 37.65 7.50 8.40 63.99 2.50 23.45 12.25 9.55 74.30 55.00 39.51 64.00 20.76 3.48 2.60 11.60 8.88 6.00

Close Chg 5.90 13.00 40.00 8.50 8.45 64.21 2.56 23.56 12.50 9.86 74.00 55.00 40.99 65.75 21.85 3.50 2.65 11.76 9.20 6.00

0.00 0.00 0.55 1.00 0.85 0.00 -0.04 0.05 0.00 -0.52 0.00 0.78 -0.01 -0.51 0.79 0.00 -0.10 -0.70 0.20 -0.45

Close 2,092.64 Listed cap 11,335.33 mn Payout (%) 30.57

Change -15.63 Market cap 295,843.48 mn Div Yield (%) 0.61

Last 60 days High Low

Volume 102 616 1501 870500 1002 102 3699 17834 410 1111 115 1505 1071 3836 1500 102 1000 3812 1508 2534

6.85 15.00 49.50 8.65 9.25 67.42 3.99 24.50 13.00 17.00 77.99 60.49 52.50 67.90 27.00 5.08 3.90 12.70 9.90 7.49

4.10 11.50 37.65 5.00 5.25 53.62 2.31 20.25 10.80 9.55 68.50 50.12 39.51 52.01 19.75 3.00 2.25 11.00 8.00 4.01

2010 Div BR (%) (%)

% Change -0.74 5-Day High 2,108.27 5-Day Low 2,043.28 2011 Div BR (%) (%)

25 50 15 25 25B 40 10 7010B 12.5R 35 20B 7.50 15 20B 12 12 10 15 10 -

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

33.92

Total Assets (Rs in mn)

MA (10-day)

3.52

Total Equity (Rs in mn)

MA (100-day)

4.12

Revenue (Rs in mn)

MA (200-day)

4.54

Interest Expense

147.33

1st Support

2.81

Loss after Taxation

(88.89)

2nd Support

2.61

EPS 10 (Rs)

(1.975)

1st Resistance

3.30

3,360.48 633.20 2,402.62

Book value / share (Rs)

2nd Resistance

3.59

PE 11 E (x)

Pivot

3.10

PBV (x)

14.07 0.22

GHNL closed down -0.17 at 3.03. Volume was 374 per cent above average (trending) and Bollinger Bands were 4 per cent narrower than normal. The company's loss after taxation stood at Rs46.321 million which translates into a Loss Per Share of Rs1.03 for the nine months of fiscal year (9MFY11). GHNL is currently 33.6 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume out of GHNL (bearish). Trend forecasting oscillators are currently bearish on GHNL.

WorldCall Telecom Limited

HOUSEHOLD GOODS Performance of SR Household Goods Index Open 746.35 Turnover 100,242 P/E (x) 1.52 Company Pak Elektron Singer Pak XB Tariq Glass Ind

Paid up Cap(mn)

High Low 755.83 730.63 Total cos Defaulter cos 15 7 P/BV (x) ROE (%) 0.16 10.64

Close 744.43 Listed cap 3,763.71 mn Payout (%) 6.27

Open

High

Low

Close Chg

Volume

1219 375 125.38 231 1.58

8.05 16.51 12.50

8.25 17.00 12.45

7.95 16.00 12.00

8.13 0.08 16.30 -0.21 12.01 -0.49

27928 674 71550

Change -1.91 Market cap 4,088.86 mn Div Yield (%) 4.11

Last 60 days High Low

2010 Div BR (%) (%)

14.50 24.09 19.40

17.5

7.26 16.00 12.00

10B 10B -

% Change -0.26 5-Day High 761.51 5-Day Low 744.23 2011 Div BR (%) (%) - 200R

PERSONAL GOODS Performance of SR Personal Goods Index Open 959.05 Turnover 11,146,885 P/E (x) 5.68 Paid up Cap(mn)

(Colony) Thal 56 Amtex Limited 2594 Apollo Textile XD 83 Artistic Denim 840 Azam Textile 133 Azgard Nine 4493 Bannu Woolen XD 76 Bata (Pak) XD 76 Blessed Tex Mills 64 Chakwal Spinning 400 Chenab Limited 1150 Colony Mills Ltd 2442 Crescent Jute 238 Crescent Textile 492 D S Ind Ltd 600 Data Textile 99 Dawood Lawrencepur XB 591 Dewan Farooque Spin. 978 Dewan Mushtaq Textile 34 Ellcot Spinning 110 Fazal Textile 62 Gul Ahmed Textile 635 Gulistan Spinning 146 H M Ismail 120 Hajra Textile 138 Hira Textile Mills Ltd. 716 Ibrahim Fibres 3105 ICC Textile 100 J K Spinning 184 Janana D Mal 48 Kohinoor Ind 303 Kohinoor Textile 2455 Leather Up 60 Masood Textile 600 Mohd Farooq 189 Nagina Cotton 187 Nishat (Chunian) 1620 Nishat Mills 3516 Pak Synthetic 560 Ravi Textile 250 Resham Textile 360 Rupali Poly 341 Saif Textile 264 Sana Ind 55 Service Ind XD 120 Suraj Cotton 180 Tata Textile 173 Thal Ltd 307 Treet Corp 418 Tri-Star Poly 215

Open

6.82 0.46 0.73 5.15 0.58 0.60 1.95 3.62 1.91 0.20 0.61 2.88 3.16 0.37 0.85 3.23 0.77 0.44 5.40 7.56 1.63 0.64 3.89 5.19 2.20 0.87 3.01 0.29 2.90 3.00 0.73 0.49 6.45 -

1.55 1.96 4.75 21.65 2.50 5.31 17.46 425.66 63.26 1.45 2.15 1.81 0.61 13.50 1.15 0.22 37.18 2.51 3.80 26.50 288.95 50.01 6.60 1.50 0.45 4.28 47.12 0.63 7.40 15.37 1.13 4.55 3.00 17.75 0.75 16.25 25.51 58.97 17.66 0.90 8.50 38.47 8.25 40.19 181.14 38.81 36.23 101.17 51.15 0.80

High

High Low 963.74 952.00 Total cos Defaulter cos 211 73 P/BV (x) ROE (%) 0.49 8.64 Low

Close Chg

1.96 1.55 1.85 0.30 2.34 1.97 2.05 0.09 4.75 4.75 4.75 0.00 21.99 21.01 21.55 -0.10 2.55 2.50 2.55 0.05 6.09 5.20 5.82 0.51 17.86 17.27 17.40 -0.06 446.94 425.00 437.46 11.80 60.26 60.10 60.21 -3.05 1.50 1.45 1.50 0.05 2.21 2.01 2.10 -0.05 1.87 1.70 1.87 0.06 0.70 0.56 0.61 0.00 13.50 13.48 13.48 -0.02 1.19 1.08 1.12 -0.03 0.35 0.35 0.35 0.13 36.50 36.40 36.45 -0.73 2.99 2.26 2.91 0.40 3.80 3.80 3.80 0.00 26.90 25.65 25.66 -0.84 300.00 300.00 300.00 11.05 50.10 50.01 50.01 0.00 7.00 6.85 6.85 0.25 1.78 1.50 1.50 0.00 0.62 0.40 0.62 0.17 4.45 4.25 4.27 -0.01 46.98 44.77 45.25 -1.87 0.70 0.70 0.70 0.07 8.00 6.40 7.05 -0.35 15.00 14.37 15.37 0.00 1.22 1.05 1.09 -0.04 4.78 4.53 4.70 0.15 2.90 2.50 2.72 -0.28 17.74 17.60 17.60 -0.15 0.81 0.52 0.75 0.00 16.00 15.75 15.75 -0.50 25.58 25.14 25.30 -0.21 59.39 58.25 58.54 -0.43 18.66 17.40 17.61 -0.05 1.05 0.86 0.98 0.08 8.75 8.50 8.50 0.00 39.90 38.25 39.89 1.42 8.50 7.80 8.25 0.00 38.31 38.25 38.27 -1.92 181.50 175.50 175.54 -5.60 38.50 37.21 38.10 -0.71 36.30 36.30 36.23 0.00 101.49 99.30 99.88 -1.29 51.88 50.80 51.60 0.45 0.72 0.72 0.80 0.00

Close 957.78 Listed cap 47,070.70 mn Payout (%) 16.68

Change -1.28 Market cap 124,919.28 mn Div Yield (%) 2.94

Last 60 days High Low

Volume 1306 1017772 500 3696 3000 8722004 4080 530 2391 6000 1977 2027 2204 3000 20768 6008 782 1600 500 1240 907 1010 1100 1101 22000 36925 25654 1000 4027 462 47514 1475 500 2000 18709 2000 232744 778588 60166 2540 1000 10693 197 1800 4822 4413 400 31824 49179 110

2.70 4.05 5.75 23.13 2.98 10.90 23.27 686.07 68.09 2.20 3.40 2.95 1.43 17.88 1.85 1.10 49.05 5.00 5.50 28.74 439.95 53.65 9.23 2.10 1.50 5.20 50.74 2.00 9.35 17.80 1.90 5.58 3.50 19.70 1.69 17.95 29.50 66.75 21.21 1.74 8.75 44.40 11.50 43.00 220.00 42.00 44.10 119.90 56.50 1.49

2010 Div BR (%) (%)

% Change -0.13 5-Day High 962.55 5-Day Low 957.01 2011 Div BR (%) (%)

0.50 1.81 - 30B 4.75 18.55 20 2.00 7.5 4.40 13.00 20 411.00 280 58.00 50 0.77 5 1.65 1.50 0.25 12.65 15 0.95 0.08 35.00 5 15B 1.81 3.02 20.92 35 274.60 100 29.60 12.5 5.52 10 0.42 0.01 3.50 10 43.02 20 0.63 6.15 20 5B 10.00 13.15 1.05 3.60 1.21 16.70 15 100R 0.51 14.50 20SD 22.30 15 57.20 25 45R 12.50 0.40 6.60 10 37.56 40 5.38 38.00 60 154.00 75 35.77 50 35.05 25 97.00 80 20B 44.10 50 900B 0.23 -

PHARMA AND BIO TECH Performance of SR Pharma and Bio Tech Index Open 981.98 Turnover 273,792 P/E (x) 6.87

2011 Div BR (%) (%)

124

97.98

0.95

2010 Div BR (%) (%)

213

0.95

8.46

KSB Pumps XD

7.91 516.07

1.10

Close Chg

High

High Low 1,135.92 1,125.50 Total cos Defaulter cos 19 4 P/BV (x) ROE (%) 0.93 25.35

212.25 210.00 211.97 1.93 147.66 144.99 145.16 -0.73 32.75 32.10 32.49 -0.32 1.75 1.75 1.75 0.03 3.39 2.90 3.03 -0.17 3.48 3.15 3.17 -0.07 9.50 9.12 9.50 0.26 219.00 217.00 217.03 -2.79 68.00 68.00 68.00 0.24 23.99 22.90 22.96 -0.99

Open 2,108.27 Turnover 913,996 P/E (x) 49.74

% Change 0.74 5-Day High 1,559.72 5-Day Low 1,548.30

Hinopak Motor

0.81

Change 11.42 Market cap 31,647.08 mn Div Yield (%) 17.03

Ghandhara Ind

Pak Engineering

Close 1,559.72 Listed cap 1,336.62 mn Payout (%) 131.49

63.00 25.18

Performance of SR Food Producers Index

Company

Close 871.56 Listed cap 54,792.74 mn Payout (%) 19.04

Open

Atlas Battery 101 5.63 210.04 Atlas Honda 626 9.06 145.89 Baluchistan Wheels Ltd. 133 1.52 32.81 Dewan Motors 1087 1.72 Ghandhara Nissan 450 3.20 Ghani Automobile Ind 200 5.98 3.24 Honda Atlas Cars 1428 9.24 Indus Motors 786 7.50 219.82 Pak Suzuki XD 823 15.32 67.76 Sazgar Engineering 150 1.13 23.95

Performance of SR Construction and Materials Index High Low 882.16 862.46 Total cos Defaulter cos 37 6 P/BV (x) ROE (%) 0.46 7.10

0.70 0.59

Performance of SR Automobile and Parts Index

CONSTRUCTION AND MATERIALS Open 865.50 Turnover 5,853,207 P/E (x) 6.46

Century Paper & Board Mills Ltd

% Change 1.18 5-Day High 691.05 5-Day Low 682.99

AUTOMOBILE AND PARTS

2011 Div BR (%) (%)

1.86

Change 8.06 Market cap 11,503.79 mn Div Yield (%) 2.24

% Change -0.20 5-Day High 1,033.33 5-Day Low 1,009.58

Close 691.05 Listed cap 3,242.17 mn Payout (%) 11.08

6.53 7.81

2011 Div BR (%) (%) -

High Low 692.56 687.74 Total cos Defaulter cos 4 2 P/BV (x) ROE (%) 1.26 25.53

1092 1321

Performance of SR Industrial Metals and Mining Index

Paid up Cap(mn)

20,173.14 20,273.64 20,141.87 i70.72

Paid up Cap(mn)

INDUSTRIAL METALS AND MINING Open 1,011.56 Turnover 54,834 P/E (x) 3.07

Current High Low Change

11,601.54 11,655.03 11,585.77 i53.49

Alert ! Unusual Movements

Performance of SR Industrial Transportation Index

Close Change 1,474.10 -15.20 Listed cap Market cap 65,194.15 mn 1,094,251.12 mn Payout (%) Div Yield (%) 55.94 5.43

691 3921

Current High Low Change

KMI 30 Index

INDUSTRIAL TRANSPORTATION

Performance of SR Oil and Gas Index Open 1,489.31 Turnover 2,353,869 P/E (x) 10.30

KSE 30 Index

Company

Paid up Cap(mn)

Abbott (Lab) XD 979 Ferozsons (Lab) 250 GlaxoSmithKlineXDXB 1963 Highnoon (Lab)XDXB 182 IBL HealthCare Ltd 200 Searle Pak 306

High Low 983.40 970.11 Total cos Defaulter cos 9 P/BV (x) ROE (%) 1.53 22.31

Open

High

Low

5.62 7.41 11.07 5.95 4.00 5.84

91.25 91.59 78.08 25.70 10.00 60.00

91.72 91.06 78.00 25.80 10.95 59.99

91.01 89.41 76.50 25.70 9.70 59.50

Close 977.51 Listed cap 3,904.20 mn Payout (%) 44.54

Volume

Last 60 days High Low

91.72 89.51 77.50 25.70 9.76 59.81

1119 4765 261050 1303 4376 1069

97.00 99.49 90.00 33.50 12.80 66.15

0.47 -2.08 -0.58 0.00 -0.24 -0.19

78.59 85.00 68.00 24.50 8.20 58.05

30.53

Total Assets (Rs in mn)

17,566.02

MA (10-day)

2.12

Total Equity (Rs in mn)

11,379.05

MA (100-day)

2.56

Revenue (Rs in mn)

MA (200-day)

2.61

Interest Expense

1st Support

1.93

Loss after Taxation

2nd Support

1.87

EPS 09 (Rs)

1st Resistance

2.11

8,408.28 523.03 (490.82) (0.570)

Book value / share (Rs)

2nd Resistance

2.23

PE 10 E (x)

Pivot

2.05

PBV (x)

13.22 0.15

WTL closed down -0.09 at 2.00. Volume was 62 per cent above average and Bollinger Bands were 20 per cent wider than normal. The company's loss after taxation stood at Rs182.323 million which translates into a Loss Per Share of Rs0.21 for the 1st quarter of current calendar year (1QCY11). WTL is currently 23.4 per cent below its 200-day moving average and is displaying a downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume out of WTL (bearish). Trend forecasting oscillators are currently bearish on WTL.

Azgard Nine Limited

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

42.90

Total Assets (Rs in mn)

38,525.22

MA (10-day)

5.30

Total Equity (Rs in mn)

18,469.71

MA (100-day)

8.98

Revenue (Rs in mn)

11,737.86

MA (200-day)

9.80

Interest Expense

1st Support

5.31

Profit after Taxation

60.53

2nd Support

4.81

EPS 09 (Rs)

0.003

1st Resistance

6.20

Book value / share (Rs)

2,424.42

37.85

2nd Resistance

6.59

PE 10 E (x)

Pivot

5.70

PBV (x)

0.15

ANL closed up 0.51 at 5.82. Volume was 85 per cent above average and Bollinger Bands were 29 per cent wider than normal. The company's loss after taxation stood at Rs2.155 billion which translates into a Loss Per Share of Rs4.80 for the 1st quarter of current calendar year (1QCY11). ANL is currently 40.6 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 ANL at a relatively equal pace. Trend forecasting oscillators are currently bearish on ANL.

BOOK CLOSURES Company

From

United Brands # Arif Habib Investment # Rafhan Maize Products NIB Bank Packages Ltd # IGI Insurance (TFC) Engro Fertiliser Mybank Ltd # Pakistan State Oil Pakistan Refinery # Husein Sugar Mills Fauji Cement Shifa Int Hospitals J.K Spinning Mills (TFC) Telecard Fauji Fertiliser JS Value Fund JS Growth Fund Shakarganj Mills # Pakistan Telephone Cables

13-May 14-May 14-May 14-May 16-May 16-May 17-May 17-May 18-May 18-May 20-May 20-May 20-May 20-May 21-May 23-May 24-May 24-May 24-May 25-May

20-May 21-May 21-May 21-May 20-May 24-May 30-May 23-May 25-May 31-May 26-May 26-May 26-May 25-May 27-May 29-May 30-May 30-May 31-May 30-May

D/B/R 350(I) 154.79(R) 10(I) 30(II) 40.49(R) 92(R) 15(II) 10(I) 45(I) 5(I) 7.5(I) -

Spot AGM/Date 06-May 06-May 06-May 10-May 12-May 12-May 12-May 13-May 16-May 16-May -

20-May 21-May 20-May 24-May 31-May 31-May 30-May

INDICATIONS

Change -4.47 Market cap 31,849.63 mn Div Yield (%) 6.49

Close Chg

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

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

% Change -0.46 5-Day High 981.98 5-Day Low 958.67 2011 Div BR (%) (%)

20B 12.50 15B 10B -

# Extraordinary General Meeting

OTHER SECTORS Symbols Climax Eng. Johnson & Philips TRG Pakistan Ltd. Murree Brewery Co. Shakarganj Food Grays of Cambridge Pak Tobacco Co. Shifa Int.Hospitals P.I.A.C.(A) AKD Capital Limited Pace (Pak) Ltd. Netsol Technologies Pak Telephone

Open 4 7.38 2.6 101.63 2.5 30.37 91.25 33.7 2.35 38 2.61 21.58 3.01

High 3 8.38 2.65 105 2.5 31.88 95.81 34.5 2.39 39 2.74 21.55 3.08

Low Close 3 8 2.53 101.99 2.5 31.1 90.25 33 2.3 38 2.6 21.2 2.86

3 7.38 2.54 103.67 2.5 31.4 95.8 33.61 2.31 38 2.66 21.27 3.04

Change -1 0 -0.06 2.04 0 1.03 4.55 -0.09 -0.04 0 0.05 -0.31 0.03

Vol 500 130 151034 1019 1000 611 7748 1684 18225 456 647983 113145 1026

Friday, May 13, 2011

FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 975.47 Turnover 1,574,316 P/E (x) 5.39 Paid up Cap(mn)

Company

Pak Datacom Pakistan Telecomm Co A Telecard WorldCall Tele Wateen Telecom Ltd

High Low 982.96 967.31 Total cos Defaulter cos 5 P/BV (x) ROE (%) 0.69 12.84

Open

High

Low

Close Chg

78 29.03 37740 13.86 3000 2.54 8606 6175 -

31.40 16.95 1.54 2.09 2.59

31.25 17.04 1.58 2.17 2.60

29.83 16.88 1.46 1.99 2.50

30.19 16.91 1.50 2.00 2.51

-1.21 -0.04 -0.04 -0.09 -0.08

Close 969.93 Listed cap 50,077.79 mn Payout (%) 62.56

Volume 705 148247 203217 1222147 43846

Change -5.54 Market cap 67,776.06 mn Div Yield (%) 11.60

% Change -0.57 5-Day High 983.07 5-Day Low 969.93

Last 60 days High Low

2010 Div BR (%) (%)

77.50 19.18 2.35 2.89 3.50

80 17.5 1 -

29.83 16.05 1.40 1.94 2.41

2011 Div BR (%) (%)

- 15.00 -

Ask Gen Insurance XB 280 3.56 Atlas Insurance 443 3.37 Central InsuranceXDXB 391 1.48 Century Insurance 457 4.65 EFU General Insurance 1250 12.46 Habib Insurance 450 8.08 IGI InsuranceSPOT 970 5.88 New Jub InsuranceXDXB 989 9.61 Pak Reinsurance XD 3000 5.35 Pak Gen Insurance XB 275 26.84 PICIC Ins Ltd 350 7.28 Premier Insurance XD 303 3.66 Reliance Insurance XB 284 4.18

9.75 27.13 67.99 8.30 34.08 11.30 71.83 54.68 15.85 5.98 8.84 8.15 6.85

Paid up Cap(mn)

Open

High

Low

Genertech 198 Hub Power 11572 Japan Power 1560 KESC 7932 Kohinoor Energy 1695 Kohinoor Power 126 Kot Addu Power 8803 Nishat Chunian Power Ltd 3673 Nishat Power Ltd 3541 Sitara Energy Ltd 191 Southern Electric 1367 Tri-star Power XD 150

7.43 4.84 2.33 5.58 2.94 2.41 6.37 -

0.60 36.98 1.21 2.35 16.00 3.00 43.67 16.42 17.04 22.42 1.37 1.14

0.64 37.09 1.29 2.40 16.49 3.00 43.95 16.40 17.05 23.20 1.40 1.00

0.57 36.90 1.16 2.32 15.76 2.85 43.25 16.12 16.75 22.25 1.30 1.00

Company

Close 1,340.37 Listed cap 95,369.29 mn Payout (%) 104.13

Change -1.92 Market cap 104,964.95 mn Div Yield (%) 7.69

Close Chg

Volume

Last 60 days High Low

0.60 37.00 1.18 2.33 16.01 3.00 43.49 16.35 16.86 23.00 1.33 1.00

14141 232056 113718 136667 6272 1502 25925 1177804 181289 301059 51097 4850

0.85 40.75 1.70 2.90 18.88 4.95 44.99 17.00 17.75 23.20 2.01 1.37

0.00 0.02 -0.03 -0.02 0.01 0.00 -0.18 -0.07 -0.18 0.58 -0.04 -0.14

0.49 35.90 0.97 2.31 15.41 2.11 40.26 14.05 14.85 15.35 1.13 0.31

% Change -0.14 5-Day High 1,342.30 5-Day Low 1,340.37

2010 Div BR (%) (%) 50 25 50 20 -

2011 Div BR (%) (%)

- 25.00 7.8R - 10.00 - 30.00 - 10.00 -

Open 1,275.42 Turnover 59,445 P/E (x) 8.25 Paid up Cap(mn)

Company Sui North Gas Sui South Gas

High Low 1,285.84 1,259.91 Total cos Defaulter cos 2 P/BV (x) ROE (%) 0.94 11.41

Close 1,270.26 Listed cap 12,202.80 mn Payout (%) 66.79

Change -5.16 Market cap 28,375.51 mn Div Yield (%) 8.10

Open

High

Low

Close Chg

Volume

Last 60 days High Low

5491 13.00 8390 4.95

18.40 21.87

18.50 22.10

18.18 21.60

18.20 -0.20 21.91 0.04

21873 37572

25.69 26.15

17.64 20.52

% Change -0.40 5-Day High 1,275.42 5-Day Low 1,243.53

2010 Div BR (%) (%) 20 15

2011 Div BR (%) (%)

25B

BANKS Performance of SR Banks Index Open 1,148.52 Turnover 11,766,169 P/E (x) 7.40 Paid up Cap(mn)

Company

Open

Allied Bank Ltd. XDXB 8603 6.15 62.74 Askari Bank XB 7070 5.19 11.52 Bank Alfalah 13492 5.67 10.68 Bank AL-Habib 8786 6.17 29.45 Bank Of Khyber 5004 2.58 5.96 Bank Of Punjab 5288 5.17 BankIslami Pak 5280 9.97 3.64 Faysal Bank 7327 7.41 9.75 Habib Bank Ltd 11021 7.63 122.39 Habib Metropolitan Bank XB 10478 5.02 17.60 JS Bank Ltd 8150 45.20 2.31 KASB Bank Ltd 9509 1.40 MCB Bank Ltd 8362 8.26 205.44 Meezan Bank XB 8030 6.03 17.55 Mybank Ltd 5304 2.19 National Bank 16818 4.07 52.15 NIB BankSPOT 40437 1.81 Samba Bank 14335 25.00 2.04 Silkbank Ltd 26716 16.56 2.70 Soneri Bank 6023 3.00 6.00 Stand Chart Bank 38716 6.95 8.50 Summit Bank Ltd 7251 3.00 United Bank Ltd 12242 7.52 64.32

High

High Low Close 1,151.81 1,133.41 1,143.23 Total cos Defaulter cos Listed cap 27 - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.03 13.94 40.49 Low

Close Chg

63.00 62.00 62.37 -0.37 11.62 11.35 11.42 -0.10 11.00 10.51 10.77 0.09 29.25 29.00 29.13 -0.32 5.90 5.55 5.78 -0.18 5.32 5.05 5.14 -0.03 3.70 3.57 3.69 0.05 9.89 9.50 9.78 0.03 122.45 121.30 122.18 -0.21 17.90 17.25 17.48 -0.12 2.40 2.06 2.26 -0.05 1.48 1.36 1.45 0.05 205.01 203.02 204.52 -0.92 17.75 17.50 17.60 0.05 2.20 2.20 2.19 0.00 52.20 51.61 51.74 -0.41 1.87 1.80 1.82 0.01 2.05 2.00 2.00 -0.04 2.75 2.60 2.65 -0.05 6.15 5.90 6.00 0.00 8.69 8.10 8.62 0.12 3.07 2.82 2.89 -0.11 64.33 63.90 63.98 -0.34

Volume

Change -5.28 Market cap 681,217.27 mn Div Yield (%) 5.47

Last 60 days High Low

15298 70.00 204956 16.38 6716788 11.20 226389 37.38 22607 6.25 955852 8.08 108901 4.18 119225 14.44 168591 131.00 16725 26.50 130918 3.16 267563 1.73 98190 230.80 6834 19.70 239 2.99 564055 81.78 1586532 2.94 9872 2.20 302432 2.99 181189 7.00 2755 9.90 96669 3.68 60258 67.25

57.00 10.90 8.75 26.95 3.30 4.51 3.06 9.00 104.16 17.25 2.06 1.16 192.20 16.26 1.70 49.57 1.68 1.50 2.02 5.00 6.28 2.36 56.70

% Change -0.46 5-Day High 1,148.52 5-Day Low 1,138.53

2010 Div BR (%) (%)

20R -

NON LIFE INSURANCE Performance of SR Non Life Insurance Index Open 735.20 Turnover 679,266 P/E (x) 10.69 Paid up Cap(mn)

Company

Adamjee Insurance XD

1237

High Low 742.57 720.77 Total cos Defaulter cos 34 22 P/BV (x) ROE (%) 0.56 5.20

Close 724.80 Listed cap 11,111.34 mn Payout (%) 79.54

Change -10.40 Market cap 45,085.47 mn Div Yield (%) 7.44

Open

High

Low

Close Chg

Volume

Last 60 days High Low

7.13

67.76

67.50

66.00

66.42 -1.34

101138

86.40

62.00

% Change -1.41 5-Day High 738.59 5-Day Low 709.27

2010 Div BR (%) (%) 25

2011 Div BR (%) (%)

12.49 42.90 115.90 10.85 39.91 16.05 103.00 74.90 20.80 10.00 13.00 13.27 8.25

9.25 26.50 65.00 8.00 29.01 11.00 65.10 51.16 12.43 5.05 7.08 8.00 5.76

-10B 25R 40 20B 25 50B 10 12.5 25 12.5B 30 55B 10.00 20 25B 30 - 10B 25 - 12.5B -

High Low 799.56 780.03 Total cos Defaulter cos 4 P/BV (x) ROE (%) 3.27 3.85

Close 797.73 Listed cap 2,290.72 mn Payout (%) 355.53

Change -11.80 Market cap 8,920.56 mn Div Yield (%) 4.18

% Change -1.46 5-Day High 809.53 5-Day Low 757.64

Open

High

Low

Close Chg

Volume

Last 60 days High Low

500

6.27

16.39

16.30

16.30 -0.09

1200

17.98

14.02

EFU Life Assurance

850

7.98

58.18

2010 Div BR (%) (%)

2011 Div BR (%) (%)

58.40

56.10

56.82 -1.36

12081

64.50

50.70

FINANCIAL SERVICES Performance of SR Financial Services Index Open 265.75 Turnover 10,372,012 P/E (x) 11.24

High Low 292.87 261.22 Total cos Defaulter cos 41 6 P/BV (x) ROE (%) 0.18 0.91

Close 280.13 Listed cap 30,336.44 mn Payout (%) 99.56

Change 14.38 Market cap 13,582.70 mn Div Yield (%) 5.15

Paid up Cap(mn)

Open

High

Low

Close Chg

225

1.02

0.50

0.53

0.43

0.49 -0.01

Arif Habib Investments

360

5.74

22.75

23.25

22.00

22.50 -0.25

17202

24.97

20.10

20B

Arif Habib Limited 450 15.12 Arif Habib Corp 3750 2.94 Dawood Cap Mangt. XB 150 2.78

14.78 22.17 1.80

14.90 22.46 1.75

14.25 21.81 1.75

14.36 -0.42 21.99 -0.18 1.75 -0.05

31830 829119 615

24.80 26.14 2.10

12.01 18.75 1.10

30 -

20B -

Dawood Equities First National Equity

250 575

Last 60 days High Low

% Change 5.41 5-Day High 280.13 5-Day Low 264.20

AMZ Ventures

Volume 14577

0.93

2010 Div BR (%) (%)

0.34

2011 Div BR (%) (%)

1.34 3.07

1.38 3.47

1.28 2.57

1.38 0.04 3.07 0.00

12284 102

2.57 5.80

1.06 2.46

- 140R

IGI Investment Bank Invest and Fin Sec

2121 8.95 600 21.92

1.70 8.50

1.80 9.29

1.71 8.10

1.70 0.00 8.11 -0.39

226 2294

2.50 9.29

1.61 5.15

11.5

Invest Bank Ist Cap Securities Ist Dawood Bank

2849 3166 626

0.70

0.35 2.80 1.54

0.48 2.97 1.60

0.35 2.62 1.50

0.35 0.00 2.68 -0.12 1.56 0.02

77643 8459 551

1.20 3.67 2.00

0.26 2.45 1.24

10B -

Jah Siddiq Co JOV and CO

7633 508

6.18 2.59

7.14 2.90

6.11 2.62

JS Global Cap JS Investment KASB Securities Orix Leasing Pervez Ahmed Sec Stand Chart Leasing

500 5.79 1000 42.08 1000 821 3.28 775 5.82 978 3.55

19.69 4.92 3.30 5.54 1.53 2.95

20.69 5.34 3.70 5.50 1.65 2.80

20.00 4.98 3.21 5.36 1.56 2.52

6.87 0.69 2.77 0.18 20.15 5.05 3.68 5.42 1.63 2.52

0.46 0.13 0.38 -0.12 0.10 -0.43

9439672 479164

11.15 3.98

4.82 2.31

10 -

19002 215327 5329 4156 42960 552

28.01 6.75 4.97 6.44 2.49 3.20

16.42 4.60 3.10 5.00 1.21 2.03

50 -

EQUITY INVESTMENT INSTRUMENTS

2011 Div BR (%) (%)

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

1600 2328 1502 672 23644 3433 20444 110 512642 1875 1200 8451 125

Paid up Cap(mn)

Company

GAS WATER AND MULTIUTILITIES

-0.20 -0.03 0.01 0.07 -0.69 0.34 -0.81 0.00 -0.43 -0.88 -0.10 0.05 0.00

American Life

Company

Performance of SR Gas Water and Multiutilities Index

9.55 27.10 68.00 8.37 33.39 11.64 71.02 54.68 15.42 5.10 8.74 8.20 6.85

LIFE INSURANCE Open 809.53 Turnover 13,371 P/E (x) 5.53

Performance of SR Electricity Index High Low 1,349.05 1,334.48 Total cos Defaulter cos 15 1 P/BV (x) ROE (%) 1.27 9.35

9.55 27.00 68.00 8.34 33.12 11.30 71.00 55.05 15.31 5.10 8.01 8.17 7.00

Performance of SR Life Insurance Index

ELECTRICITY Open 1,342.30 Turnover 2,246,380 P/E (x) 13.55

9.70 27.12 69.98 8.47 35.00 11.66 71.80 56.80 15.73 5.10 9.84 8.90 7.35

Performance of SR Equity Investment Instruments Index Open 1,501.82 Turnover 805,950 P/E (x) 20.10 Paid up Cap(mn)

High Low 1,511.07 1,474.27 Total cos Defaulter cos 52 11 P/BV (x) ROE (%) 0.44 2.21

Close 1,486.59 Listed cap 29,771.58 mn Payout (%) 104.74

UPTO 100 VOLUME Symbols

Open

AGL BAPL FPRM GATI OLTM SAPL SHTM UNIC MUCL BROT YOUW DIIL NJLIC EXIDE SLCL MUKT PRWM NESTLE PCAL ULEVER SUTM COLG SRSM BIFO TSML BFMOD DSML MFFL FECM FCIBL FHAM GHGL WYETH MWMP SHEZ SIEM SMCPL STPL ZTL ALQT ANLNV DINT FTM HAEL IDRT ISIL RMPL FRCL GAMON PAKL SJTM AABS BCML CSUML FCONM FDMF GTYR IDSM JVDC KOHS MUBT MZSM NONS POML

19.36 7.31 9.00 54.55 0.60 143.15 0.49 5.33 7.75 0.30 1.26 9.73 50.88 193.16 1.89 0.27 14.64 3599.48 50.10 5185.39 36.01 746.53 3.60 47.30 49.50 4.65 2.00 74.00 2.99 4.99 7.75 53.75 855.72 0.95 152.56 1005.68 4.95 9.35 3.25 11.60 7.00 27.70 4.00 9.50 4.32 82.13 2778.78 2.88 1.97 2.00 0.90 97.99 14.49 2.50 1.10 2.01 23.50 7.56 61.37 3.25 0.55 3.01 16.59 41.66

% Change -1.01 5-Day High 1,506.34 5-Day Low 1,486.00

Open 22.87

ENGRO-MAY 198.37

100 100 100 100 100 100 100 100 99 96 96 90 90 73 65 53 50 40 37 36 30 29 25 24 22 20 13 13 12 11 10 10 10 8 8 6 6 6 6 5 5 5 5 5 5 5 5 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2 2

High

Low

Change -0.06

Vol

23.10

22.70

22.81

196.60

196.90

-1.47

235000

51.86

51.96

-0.42

225500

POL-MAY

327.96

327.50

325.60

325.95

-2.01

129000

FFC-MAY

689500

140.44

144.00

140.00

141.13

0.69

117500

58.82

-0.36

91500

42.31

42.20

41.89

41.91

-0.40

89000

PPL-MAY

207.67

207.11

205.15

205.72

-1.95

84500

MCB-MAY

205.61

205.39

204.25

205.03

-0.58

ATRL-MAY

125.49

125.45

124.07

124.41

-1.08

LUCK-MAY

70.41

71.40

70.75

71.02

0.61

49000

FFC-MAYB

137.00

137.80

137.00

137.74

0.74

28500

PTC-MAY

17.10

17.05

16.95

-0.15

10500

36.53

0.00

10000

59.18

FFBL-MAY

High

Low

Close Chg

Volume

Last 60 days High Low

2010 Div BR (%) (%)

2011 Div BR (%) (%)

HUBC-MAY

Open 1.30 10.45 3.95 6.45

1.48 10.50 3.90 6.40

1.30 10.31 3.90 6.40

1.32 10.46 3.90 6.40

0.02 0.01 -0.05 -0.05

1144 5057 6000 525

2.35 11.20 3.95 6.97

1.15 8.95 2.85 5.00

18.5 5 2.2

5.00 -

B R R Guardian Mod. Crescent St Modaraba Equity Modaraba Golden Arrow

780 200 524 760

1.89 4.00 8.68 2.13

1.97 0.57 1.51 3.27

2.10 0.60 1.68 3.40

1.81 0.48 1.65 3.20

1.81 0.56 1.65 3.21

-0.16 -0.01 0.14 -0.06

24946 22789 40001 23193

2.91 0.84 2.50 3.95

1.12 0.39 1.50 2.92

0 1.2 17

H B L Modaraba JS Growth Fund JS Value Fund KASB Modaraba Meezan Balanced Fund

397 3180 1186 283 1200

3.71 2.42 0.62 1.61 2.58

7.60 7.17 6.05 2.50 9.30

7.61 7.40 6.05 2.50 9.47

7.56 7.05 5.91 2.50 8.46

7.56 7.05 5.91 2.50 8.98

-0.04 -0.12 -0.14 0.00 -0.32

4500 557002 25500 234 1004

8.48 7.45 6.68 3.94 9.49

6.81 4.76 4.20 1.50 8.12

11 12.5 10 2.8 15.5

5.00 -

Pak Modaraba PICIC Energy Fund PICIC Growth Fund PICIC Inv Fund Prud Modaraba 1st Punjab Modaraba Stand Chart Modaraba Tri-Star 1st Modaraba Trust Modaraba

125 1000 2.12 2835 2.64 2841 2.22 872 1.78 340 454 5.41 212 52.50 298 2.90

0.78 7.25 12.83 5.74 0.91 0.90 9.80 1.05 2.00

1.03 7.20 12.86 5.70 0.99 0.98 9.70 0.80 1.50

0.75 7.15 12.85 5.61 0.91 0.83 9.70 0.80 1.50

0.75 7.20 12.85 5.61 0.98 0.90 9.80 1.05 2.00

-0.03 -0.05 0.02 -0.13 0.07 0.00 0.00 0.00 0.00

654 31995 6425 15150 21503 3410 201 150 420

1.25 8.50 13.86 6.74 1.10 1.99 10.63 2.20 2.49

0.45 6.92 12.00 5.10 0.80 0.50 9.50 0.20 1.50

3 10 20 10 3 1 17 5

- 10.00 - 12.50 - 7.50 -

0.25

0.38

0.13

0.13 -0.12

14000

0.50

0.05

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

Vol

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -73.92 0.00 -8.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

52.20

4.49 2.48 1.70

Change

198.25

136

19.36 7.31 9.00 54.55 0.60 143.15 0.49 5.33 7.75 0.30 1.26 9.73 50.88 193.16 1.89 0.27 14.64 3525.56 50.10 5177.18 36.01 746.53 3.60 47.30 49.50 4.65 2.00 74.00 2.99 4.99 7.75 53.75 855.72 0.95 152.56 1005.68 4.95 9.35 3.25 11.60 7.00 27.70 4.00 9.50 4.32 82.13 2778.78 2.88 1.97 2.00 0.90 97.99 14.49 2.50 1.10 2.01 23.50 7.56 61.37 3.25 0.55 3.01 16.59 41.66

52.38

264 1375 210 525

UNICAP Modaraba

NBP-MAY

1st Fid Leasing AL-Meezan Mutual F. AL-Noor Modaraba Atlas Fund of Funds

Company

Low 19.75 8.29 9.30 56.00 0.60 145.99 0.50 5.33 8.75 0.48 1.11 9.00 48.55 190.00 1.50 0.26 14.75 3500.00 48.25 5150.00 37.81 710.00 3.66 46.00 49.40 4.04 2.00 72.00 3.00 4.50 7.44 54.20 850.00 0.35 145.25 1010.00 4.90 8.85 3.25 11.50 7.00 29.00 5.00 10.00 4.15 78.05 2702.00 2.15 1.90 1.02 1.00 98.00 15.44 2.99 1.47 2.24 23.00 6.65 61.80 3.00 0.65 3.21 17.00 43.74

FUTURE CONTRACTS Symbols DGKC-MAY

NML-MAY

Change -15.23 Market cap 19,083.57 mn Div Yield (%) 8.10

High 19.75 8.29 9.30 56.00 0.60 146.00 0.50 5.33 8.75 0.48 1.30 9.00 48.57 190.00 1.50 0.39 14.75 3679.00 51.00 5285.00 37.81 744.56 3.99 49.50 49.65 4.04 2.84 77.38 3.00 5.00 7.44 54.20 850.00 1.25 153.00 1034.99 5.48 9.69 4.07 11.50 7.00 29.00 5.00 10.00 4.88 78.05 2799.00 2.15 1.99 2.45 1.40 98.00 15.44 2.99 1.47 2.24 23.00 7.99 61.80 3.75 0.99 3.21 17.00 43.74

59.65

58.61

82500 56500

MTS LEVERAGE POSITION Total Volume 2,457,485 10,750 50,649 47,500 35,200 11,437 263,000 39,250 89,335 32,000 37,000 5,000 3,036,200 10,000 42,300 555,536 410,000 222,350 7,500 42,200 35,500 28,750 78,525 22,055 11,000 7,580,522

Total Value 39,842,360 546,640 425,345 175,718 3,297,927 89,518 4,425,215 5,718,541 2,806,088 3,370,405 1,033,371 161,706 35,102,886 526,601 6,418,951 20,974,704 7,885,746 9,847,012 818,486 427,662 8,707,080 4,426,437 16,432,471 279,768 510,986 174,251,624

MTS Rate 20 20 21 20 20 16 16 15 15 15 16 17 21 16 16 18 15 20 17.56

BOARD MEETINGS

Bank Al-Falah Ltd

KSE 100 INDEX

Dera Ghazi Khan Cement Co Ltd

Fauji Fertiliser Bin Qasim Ltd

Company

Date

Time

Habib Sugar Mills Ltd

14-May

12:00

Invest Capital Investment

14-May

Reliance Income Fund

14-May

11:00

Hinopak Motors Ltd

16-May

12:00

Khairpur Sugar Mills Ltd

16-May

Honda Atlas Cars

16-May

11:00

Kohinoor Sugar Mills Ltd

17-May

11:30

11:00

3:00

TECHNICAL LEVELS Company

RSI 1st 2nd (14-day) Support 46.44 2.55 2.50 54.65 61.90 61.45 49.23 52.25 51.65 Arif Habib Corp 39.89 21.70 21.45 Arif Habib Limited 35.81 14.10 13.85 Adamjee Insurance 41.21 65.80 65.15 Askari Bank 36.31 11.30 11.20 Azgard Nine 42.90 5.30 4.80 Attock Petroleum 52.59 374.00 373.00 Attock Refinery 49.78 123.65 123.10 Bank Alfalah 58.23 10.50 10.25 Bankislami Pak 43.58 3.60 3.50 Bank.of.Punjab 36.57 5.00 4.90 Dewan Cement 34.88 1.40 1.30 D.G.K.Cement 38.31 22.55 22.40 Dewan Salman 35.74 2.25 2.20 Dost Steels Ltd 43.29 1.75 1.65 EFU General Insurance 52.51 32.70 31.95 EFU Life Assurance 51.62 55.80 54.80 Engro Corp 45.97 195.60 194.90 Faysal Bank 38.95 9.55 9.35 Fauji Cement 55.27 4.15 4.05 Fauji Fert Bin 52.38 41.60 41.50 Fauji Fertilizer 57.56 140.35 139.50 Habib Bank Ltd 53.00 121.50 120.85 Hub Power 43.64 36.90 36.80 ICI Pakistan 43.60 153.15 152.30 Indus Motors 38.92 216.35 215.70 J.O.V.and CO 47.67 2.60 2.50 Japan Power 49.26 1.15 1.10 JS Bank Ltd 28.22 2.10 1.90 Jah Siddiq Co 44.21 6.30 5.70 Kot Addu Power 60.71 43.15 42.85 K.E.S.C 33.29 2.30 2.25 Lotte Pakistan 45.59 15.50 15.40 Lucky Cement 55.39 70.65 69.95 MCB Bank Ltd 49.36 203.35 202.20 Maple Leaf Cement 35.86 2.05 2.00 National Bank 34.27 51.50 51.25 Nishat (Chunian) 34.55 25.10 24.90 Netsol Technologies 33.92 21.15 21.00 NIB Bank 40.44 1.80 1.75 Nimir Ind.Chemical 34.98 2.40 2.35 Nishat Mills 29.80 58.05 57.60 Oil & Gas Dev. XD 58.13 146.25 145.35 PACE (Pakistan) Ltd. 32.96 2.60 2.55 Pervez Ahmed Sec 47.39 1.55 1.50 P.I.A.C.(A) 36.56 2.30 2.25 Pioneer Cement 29.15 4.65 4.60 Pak Oilfields 52.22 325.05 323.90 Pak Petroleum 40.35 203.70 202.70 Pak Suzuki 46.91 66.85 65.75 P.S.O. XD 57.29 278.55 277.20 P.T.C.L.A 48.96 16.85 16.80 Shell Pakistan 48.22 209.40 209.20 Sui North Gas 39.29 18.10 17.95 Sitara Peroxide 50.46 17.75 17.55 Sui South Gas 44.06 21.65 21.35 Telecard 32.46 1.45 1.40 TRG Pakistan 39.96 2.50 2.45 United Bank Ltd 54.60 63.80 63.65 WorldCall Tele 30.54 1.95 1.85 Al-Abbas Cement

Allied Bank Limited Attock Cement

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position

53.39

Support 1

11,920.50

MA (5-day)

11,964.64

Support 2

11,878.85

MA (10-day)

11,945.23

Resistance 1

12,029.00

MA (100-day)

11,985.61

Resistance 2

12,095.80

MA (200-day)

11,217.25

Pivot

11,987.35

Arif Habib Ltd

Target Price

Recommendations

11.6

Hold

Arif Habib Ltd

Buy

Arif Habib Ltd

Accumulate

AKD Securities Ltd

28.72

Accumulate

AKD Securities Ltd

45.52

Accumulate

Positive

TFD Research

36.45

Positive

TFD Research

44.25

Neutral

AKD Securities Ltd TFD Research

11 14.01

Technical Outlook Technical Analysis

Leverage Position

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

58.23 MTS Shares `000 11.437 10.22 MTS Rs `000 89.52 10.51 MTS Rate 20.00 9.81 ** NOI Rs (mn) N/A Free Float Shares (mn) 674.58 Free Float Rs (mn) 7,265.21 Target price for Dec-11 & **Net Open Interest in future market

KSE 100 INDEX closed down -74.18 points at 11,962.18. Volume was 41 per cent below average and Bollinger Bands were 35 per cent narrower than normal. As far as resistance level is concern, the market will see major 1st resistance level at 12,029.00 and 2nd resistance level at 12,095.80, while Index will continue to find its 1st support level at 11,920.50 and 2nd support level at 11,878.85. KSE 100 INDEX is currently 6.7 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of INDEX at a relatively equal pace. Trend forecasting oscillators are currently bullish on INDEX.

BAFL closed up 0.09 at 10.77. Volume was 238 per cent above average (trending) and Bollinger Bands were 23 per cent narrower than normal. BAFL is currently 9.8 per cent above its 200-day moving average and is displaying a downward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into BAFL (mildly bullish). Trend forecasting oscillators are currently bearish on BAFL.

Oil & Gas Development Co Ltd

Nishat Mills Ltd

Brokerage House Arif Habib Ltd

Target Price 143.2

AKD Securities Ltd TFD Research

145 145.25

Recommendations

Brokerage House

Hold

AKD Securities Ltd

Accumulate

TFD Research

71.45 78.6

Leverage Position

58.14 MTS Shares `000 7.50 147.00 MTS Rs `000 818.49 155.29 MTS Rate 15.76 153.28 ** NOI Rs (mn) N/A Free Float Shares (mn) 630.61 Free Float Rs (mn) 92,799.98 Target price for Dec-11 & **Net Open Interest in future market

Technical Analysis

Recommendations

30.1

Brokerage House

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

38.31 22.91 26.32 26.55

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

Recommendations Accumulate Positive

Leverage Position

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

29.78 MTS Shares `000 222.35 59.85 MTS Rs `000 9,847.01 64.14 MTS Rate 15.99 57.45 ** NOI Rs (mn) 55.63 Free Float Shares (mn) 175.80 Free Float Rs (mn) 10,291.33 Target price for Dec-11 & **Net Open Interest in future market

Target Price

Recommendations

42.2

Hold

Technical Outlook

Leverage Position

Free Float Shares (mn) 200.80

263.00 4,425.22 15.99 126.24 4,568.30

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

Technical Analysis

Leverage Position

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

52.37 MTS Shares `000 89.335 41.81 MTS Rs `000 2,806.09 40.49 MTS Rate 15.42 35.41 ** NOI Rs (mn) 61.73 Free Float Shares (mn) 326.94 Free Float Rs (mn) 13,646.41 Target price for Dec-11 & **Net Open Interest in future market

DGKC closed down -0.09 at 22.75. Volume was 6 per cent above average FFBL closed down -0.33 at 41.74. Volume was 64 per cent below average and Bollinger Bands were 19 per cent narrower than normal.

(consolidating) and Bollinger Bands were 58 per cent narrower than normal.

DGKC is currently 14.3 per cent below its 200-day moving average and is FFBL is currently 17.8 per cent above its 200-day moving average and is displaying a downward trend. Volatility is relatively normal as compared to displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of DGKC at a relatively equal pace. reflect moderate flows of volume into FFBL (mildly bullish). Trend forecastTrend forecasting oscillators are currently bearish on DGKC.

Brokerage House

ing oscillators are currently bullish on FFBL.

Lucky Cement Ltd

Target Price

Recommendations

144

Brokerage House

Target Price

Recommendations

Hold

Arif Habib Ltd

97.1

Buy

AKD Securities Ltd

120.7

Reduce

AKD Securities Ltd

87.61

Buy

TFD Research

129.4

Neutral

TFD Research

86.15

Positive

Arif Habib Ltd

Technical Outlook

Technical Outlook Technical Analysis

Target Price

Fauji Fertiliser Co

Neutral

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

Brokerage House

Technical Outlook

Technical Outlook Technical Analysis

Leverage Position

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

57.55 MTS Shares `000 32.00 140.02 MTS Rs `000 3,370.40 136.84 MTS Rate 14.99 122.84 ** NOI Rs (mn) 32.49 Free Float Shares (mn) 466.49 Free Float Rs (mn) 65,872.68 Target price for Dec-11 & **Net Open Interest in future market

Technical Analysis

Leverage Position

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

55.41 MTS Shares `000 10.00 70.42 MTS Rs `000 526.60 70.26 MTS Rate 70.68 ** NOI Rs (mn) 101.47 Free Float Shares (mn) 129.35 Free Float Rs (mn) 9,235.59 Target price for Dec-11 & **Net Open Interest in future market

OGDC closed down -1.91 at 147.16. Volume was 18 per cent below aver- NML closed down -0.43 at 58.54. Volume was 68 per cent below average FFC closed up 1.02 at 141.21. Volume was 69 per cent below average (con- LUCK closed up 0.81 at 71.40. Volume was 47 per cent below average (consolidating) and Bollinger Bands were 40 per cent wider than normal.

solidating) and Bollinger Bands were 85 per cent narrower than normal. NML is currently 1.9 per cent above its 200-day moving average and is dis- FFC is currently 14.9 per cent above its 200-day moving average and is playing a downward trend. Volatility is relatively normal as compared to the displaying an upward trend. Volatility is relatively normal as compared to displaying an upward trend. Volatility is high as compared to the average average volatility over the last 10 trading sessions. Volume indicators the average volatility over the last 10 trading sessions. Volume indicators volatility over the last 10 trading sessions. Volume indicators reflect modreflect volume flowing into and out of NML at a relatively equal pace. Trend erate flows of volume into OGDC (mildly bullish). Trend forecasting oscil- forecasting oscillators are currently bearish on NML. Momentum oscillator reflect volume flowing into and out of FFC at a relatively equal pace. Trend age and Bollinger Bands were 42 per cent wider than normal.

OGDC is currently 4.0 per cent below its 200-day moving average and is

lators are currently bullish on OGDC.

is currently indicating that NML is currently in an oversold condition.

forecasting oscillators are currently bullish on FFC.

and Bollinger Bands were 23 per cent narrower than normal. LUCK is currently 1.0 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into LUCK (mildly bullish). Trend forecasting oscillators are currently bullish on LUCK.

1st 2nd Resistance 2.70 2.75 63.45 53.60 22.35 22.75 14.75 15.15 67.30 68.15 11.55 11.75 6.20 6.60 376.50 378.00 125.05 126.00 11.00 11.25 3.75 3.80 5.30 5.45 1.55 1.65 23.00 23.30 2.40 2.50 1.90 2.00 34.55 35.70 58.10 59.40 197.50 198.70 9.95 10.10 4.35 4.45 41.95 42.20 141.80 142.35 122.65 123.15 37.10 37.20 155.35 156.70 218.35 219.70 2.90 3.05 1.25 1.35 2.40 2.60 7.30 7.75 43.85 44.25 2.40 2.45 15.65 15.75 71.85 72.30 205.35 206.15 2.15 2.20 52.10 52.45 25.55 25.80 21.50 21.70 1.90 1.95 2.50 2.55 59.20 59.85 148.80 150.45 2.70 2.75 1.65 1.70 2.40 2.45 4.85 5.00 327.90 329.60 206.20 207.70 70.25 72.55 281.85 283.85 17.00 17.10 209.95 210.25 18.40 18.60 18.25 18.55 22.15 22.35 1.55 1.65 2.60 2.70 64.25 64.50 2.10 2.25

Pivot 2.65

62.90

62.45

53.25

52.65 22.10 14.50 66.65 11.45 5.70 375.50 124.55 10.75 3.65 5.15 1.50 22.85 2.35 1.80 33.85 57.10 196.80 9.70 4.25 41.85 140.90 122.00 37.00 154.50 217.70 2.75 1.20 2.25 6.70 43.55 2.35 15.60 71.15 204.20 2.10 51.85 25.35 21.35 1.85 2.45 58.75 147.90 2.65 1.60 2.35 4.80 326.75 205.20 69.15 280.50 16.95 209.75 18.30 18.05 21.85 1.50 2.55 64.05 2.05

Friday, May 13, 2011

China Raises Bank Reserves in Uphill Fight Against Inflation

Bank of England scales back growth forecast

Bank Alfalah says not exiting Pak HONG KONG: People withdrawing cash at an HSBC ATM in Hong Kong.-Reuters

Maybank expects FY11 result to beat record â&#x20AC;&#x2DC;10 KUALA LUMPUR: Malaysia's largest lender Malayan Banking Bhd (Maybank) expects its 2011 performance to exceed its record results last year, helped by the growth in economy and the government's measures to boost investment. The bank posted a 11 per cent rise in thirdquarter profit, helped by strong loan growth. Malaysian banks have continued to perform strongly on loan growth, but non-interest income is becoming more important as net interest margins -- the difference between the interest rate the bank charges and what it pays depositors -- are expected to shrink due to increasing competition. "The all-round revenue improvement in our various business segments is encouraging, while the strong deposit growth is helping sustain diversity in our loan book," Maybank Chief Executive Wahid Omar said in a statement. The bank's loan portfolio grew 16.4 percent, but net interest income rose by a modest 7.6 percent. Net interest income fell 2.3 per-

cent to 1.8 billion ringgit from the preceding quarter due to thinner margins across all markets. Thin margins are becoming worrisome for Maybank's rivals in its southern neighbour Singapore where lenders are feeling the pinch from the country's near-zero policy rates. Overseas-Chinese Banking Corp , Singapore's second largest lender, reported a lower net interest margin Thursday. For the third quarter, Maybank reported a net profit of 1.14 million ringgit, up from 1.03 billion ringgit a year ago, while loans grew 16.4 percent from the previous year. Analysts polled by Thomson Reuters I/B/E/S are expecting Maybank to post a full-year net profit of 4.35 billion ringgit, more than its record profit of 3.82 billion ringgit in 2010. In a separate statement, Maybank said rising household debt and inflationary pressures are posing a new challenge to the banking sector as Bank Negara Malaysia , the central bank, has started introducing monetary tightening

measures. Maybank said it expects its acquisition of Singapore brokerage Kim Eng Holdings to increase fee income. "Kim Eng, especially its Thai unit, will be very positive for Maybank although it won't be earnings-accretive until the completion of the deal, expected before the end of this fiscal year," said Lim Sue Lin, senior banking analyst at HwangDBS Vickers research. The Kim Eng purchase will boost Maybank's non-interest income and offset potential losses from a fall in net interest margins. Maybank recently raised its base deposit and lending rates by 30 basis points following a decision by Bank Negara Malaysia to raise its policy rate to 3.0 percent from 2.75 percent. Maybank shares have gained 3.2 percent year to date, compared with the broader market's 2.0 percent rise. Shares of its top competitor CIMB Group have fallen 3.3 percent in the same period, while Public Bank has risen 0.6 percent.-Reuters

SBP launches 10mn pounds fiscal fund Staff Reporter KARACHI: The Governor State Bank of Pakistan Shahid Kardar launched 10 million pounds Financial Innovation Challenge Fund (FICF) and unveiled the first round of FICF on Government to Person Payments (G2P). 'Banks, public sector institutions, microfinance institutions, government agencies, pension funds, and academic institutions are invited to apply to promote G2P payment through bank accounts at branchless banking outlets and also provide other financial services to the G2P payments beneficiaries,' he added. Delivering his key note address at the 'Branchless Banking: Government to Person Payments (G2P) Conference 2011' and launching of 'Financial Innovation Challenge Fund' at SBP Learning Resource Centre in Karachi, he said that FICF would provide grants to foster innovations and test new markets, lower cost of service delivery, enable systems and procedures to be more efficient and provide new ways of meeting the unmet demand for financial services. Kardar said that in Pakistan, Government to Person Payments (G2P) had typically been made at location specific cash payments. 'This system is due to limited options, as recipients lack bank accounts and banks have few accessible branches for cash disburse-

ment, he said and added that with the rise of branchless banking models, there were new technology based payment options, which were convenient, safe, and affordable. He said that despite recent experiments under the Benazir Income Support Program (BISP), Watan Card and World Food Program, there was room for further experimentation. 'Hence, broader and deeper alliances between government agencies and financial service providers would leverage the existing banking and agent networks to engage in the distribution of G2P payments, these steps will not only make G2P payments easier but, also bring more people under the ambit of the financially served', Kardar added. SBP Governor said that the eventual aim of the G2P Payments challenge round was to leverage an enhanced payment mechanism and attract recipients of government payments into the sphere of banking and financial services. Kardar also highlighted the key benefits of automating G2P payments and said that this would reduce the time lag in delivery and monetary inefficiencies due to leakages and corruption in the system leading to substantial savings and greater government credibility and allow better targeting of subsidies while leveraging national infrastructure for identification and verification; enhance scope of financial inclusion for banks to build financial services on top of

payments through basic store of value accounts. 'Besides, the e-payments also assist small businesses such as grocery stores and agents to create new opportunities in existing business infrastructures and enable small business owners to earn commission for providing an automated service point while the additional service helps attract an increased number of customers,' he said. The outcomes will not just be direct but also indirect because of externalities, whose benefits would be difficult to quantify but should be around 1% of GDP, he added. Kardar said that the Microfinance Credit Guarantee Facility under the Financial Inclusion Program (FIP) had been successful linking the wholesale (commercial banks) funding market with the microfinance sector. 'The facility has mobilized Rs2.3 billion enabling additional 150,000 microfinance loans to new borrowers. Going forward, the facility is expected to raise additional funding of up to 3 billion,' he added. It may be pointed out that the deadline for submitting an Expression of Interest (EoI) to benefit from FICF is May 30, 2011. EOIs may be submitted electronically on ficf@sbp.org.pk or a hard copy can also be sent to Director Agriculture Credit and Microfinance Department, State Bank of Pakistan, Karachi.

US banks and states meeting on foreclosure practices WASHINGTON: US state attorneys general are pressing five large banks to reduce loan balances for troubled borrowers as part of a settlement over mortgage servicers' foreclosure practices. The two sides -- which include Bank of America Corp, JP Morgan Chase & Co, Citigroup nc, Wells Fargo & Co and Ally Financial -- began meeting on Tuesday and the talks are expected to last most of the week. "We are still far apart on some issues," Connecticut Attorney General George Jepsen said. The negotiations have been going on for months and to kick off this round the states and their partner federal agencies, which include the departments of Justice and Housing and Urban Development, revised an earlier 27-page settlement proposal sent to banks in March. The revised termsheet includes a proposal for how states and the federal government would use whatever penalty banks agree to pay, as well as earlier proposals for overhauling how servicers deal with troubled homeowners. A spokesman for Iowa Attorney General Tom Miller, leader of the states' investigation, said the proposal includes using the funds for reducing the balance of troubled homeowners' loans, but the funds would also be used for other programs.-Reuters

LAHORE: The Bank Alfalah and Abu Dhabi Group is not looking to exit Pakistan through divestment or sell-off and they will very much stay in Pakistan. The Bank Alfalah CEO, Sirajuddin Aziz, stated this while addressing the members, investors, analysts and media representatives at the Corporate Briefing Programme of Bank Alfalah Limited at Lahore Stock Exchange here. The CEO said, "On the contrary, the Bank is aggressively looking for growth opportunities in Pakistan, which is evident from the expansion of its branch network across the country." Presenting a detaiedl overview of the Bank`s operations and future expansion plans, he said the Bank, which started operations in 1997 with just three branches and virtually no banking infrastructure is today the 6th largest bank in Pakistan with 386 branches in 150 towns, over 400 billion rupees (48 billion US dollars) in assets and is still growing rapidly. The bank is planning to open 24 more branches and looking for opportunities to expand foreign operations in Hong Kong & Beijing in addition to Bangladesh, Afghanistan, UAE & Bahrain. The Bank also has the distinction of having the second largest Islamic Banking operations in Pakistan. Commenting on the perception of higher interest rates

being changed by the banks in Pakistan, the CEO said that this issue requires more subjective analysis because while the old and more established banks have low cost assets, an new comers of young banks such as Bank Alfalah have a much higher costs of deposits. About the latest released financial results of the Bank, he said that despite the economic situation and mounting pressure on the banking sector due to circular debt, NPLs and 2010 floods, performance of Bank Alfalah Limited showed a positive trend in Ist quarter of 2011, as Bank`s total deposits have increased by 7.3 percent to Rs 539.5 billion as on March 31, 2011. Bank Alfalah is part of Abu Dhabi Group, which has controlling interest in the Bank, he added. The Corporate Briefing Programme is an initiative of the LSE to increase market efficiency by removing information disparity in the marketplace. Market lenders are invited through this programme to present their company`s performance and future plans to the investment public. The presentation by Bank Alfalah was the fifth programme of this series that has received a lot of praise from the investment fraternity since its launch. Representatives of Engro Corporation, Nishat Group, Arif Habib Corporation and Treet Corporation have already organized their briefings under this programme.-APP

KBC 1Qtr profit beats expectations BRUSSELS: Belgian banking and insurance group KBC beat forecasts with a 22 per cent rise in underlying first-quarter net profit, helped by lower loan losses, retail banking and its dealing rooms. "Our banking and insurance businesses in our Belgian and core central and eastern European home markets turned in a sound performance, while the merchant banking business unit bounced back," chief executive Jan Vanhevel said on Thursday.

in coming quarters, due to higher credit costs in eastern Europe and declining interest margins at home. Deposits grew in the retail unit, especially in Belgium, where KBC also registered higher loan volumes. Loan volumes in central and eastern Europe were flat. Fee and commission income fell 7 percent after assets under management fell compared to the final quarter of 2010. KBC said preparations for the partial listing of its Czech unit CSOB were on track. While

Underlying net profit rose to 658 million euros ($919 million) in the first quarter, compared with a forecast for 541 million in a Reuters poll. KBC took a 97 million euro impairment on bad loans in the first quarter, down 80 percent on the previous quarter. Its shares were up 2.2 percent at 1200 GMT, to be the secondbiggest gainer on the the panEuropean FTSEurofirst 300 index . Petercam analyst Matthias De Wit said the performance may not be sustainable

KBC has agreed with the European Commission to divest its Czech unit CSOB and its private banking arm KBL, in exchange for receiving 7 billion euros state aid in the credit crisis, the group has found it difficult to comply. The 1.35 billion euro sale of KBL to Indian investment firm Hinduja failed after KBC failed to gain regulatory approval. KBC said tens of possible buyers were now eyeing the unit.Reuters

1Q: Dexia gets retail banking boost BRUSSELS: Dexia performed better than expected in retail banking in its first quarter, although the Franco-Belgian financial group took some heavy losses on the sale of bonds and revaluation of toxic assets left over from the credit crisis. Dexia's retail banking business, where it is mainly active in Belgium and Turkey, benefited from a growth in loans and deposits in both countries. The group is partly stateowned and received a 6 billion euro ($8.4 billion) bailout from shareholders in 2008.It has agreed with the European Commission to divest activities and reduce its balance sheet by running down its bond holdings and selling U.S. asset-backed securities, much of it linked to subprime mortgages. The division managing these assets recorded a pretax loss of 247 million euros, while the profit from the businesses it plans to keep more than doubled. Its first quarter net profit fell 68 percent to 69 million euros, which compared with a forecast for 92.4 million in a Reuters poll. Petercam analyst Matthias De Wit upgraded the stock to "hold" from "reduce" after the results. "The core divisions, the parts that will be the future Dexia, are performing better than expected," he said, adding that expectations in general had been low after Dexia said in February that 2011 would be a tough year.-Reuters

Italy banks face 200bn euro debt refinance ROME: Speaking at a financial conference, Giovanni Sabatini, head of the Italian banking association ABI, said the banks' refinancing needs had been partly covered already. "But there will be some critical elements going forward, when it comes to refinancing what's left." The ABI's estimate of total banking debt coming due this year is not far different from a 2010 figure of 209 billion euros. Funding difficulties may eventually affect banks' lending, Sabatini said, noting sovereign risk tensions in the euro zone had made it more difficult for Italian banks to issue euro medium-term notes. The ABI official quoted Bank of Italy figures showing the average cost of fixed-rate bonds issued by domestic banks had risen to 3.75 percent in the first two months of 2011, up from 3 percent at end-2009. Analysts estimate Italian banks have wholesale funding needs of around 100 billion euros this year. For the remaining part they can rely on their retail customers, traditionally avid buyers of banking debt. Italy's public debt runs at around 120 percent of gross domestic product -- a factor which makes the country vulnerable to market jitters about the sustainability of euro zone sovereign debt. Analysts at Morgan Stanley wrote in a report this week that "difficult funding continues to remain the single key issue for Italian banks." Last year Italian banks issued 196 billion euros in new debt. Top Italian banks UniCredit and Intesa Sanpaolo are due to report first-quarter results on Friday.-Reuters

Friday, May 13, 2011

Oil slips to $111 on demand concerns after slide

European vegetable oil prices

IEA lowers 2011 global oil demand growth

ROTTERDAM: The following were the Thursday's Rotterdam vegetable oil price's at 21:00 PST. SOYOIL: EU degummed euro tonne fob exmill May11 885.00, Jun11 890.00+15.00, Jul11 890.00+15.00, Aug11/Oct11 895.00+15.00, Nov11/Jan12 900.00, Feb12/Apr12 905.00. RAPEOIL: Dutch/EU euro tonne fob exmill Jun11/Jul11 955.00, Aug11/Oct11 955.00+0.00, Nov11/Jan12 965.00+0.00, Feb12/Apr12 970.00+0.00. SUNOIL: EU dlrs tonne extank six ports option Jul11/Sep11 1390.00+0.00, Oct11/Dec11 1350.00+10.00. LINOIL: Any origin dlrs tonne extank Rotterdam May11/Jun11 1472.50-5.00. CRUDE PALM OIL: Sumatra/Malaysia slrs option dlrs tonne cif R'dam Jun11 1135.00-2.50, Jul11/Sep11 1125.00-5.00, Oct11/Dec11 1115.00-5.00. PALMOIL: RBD dlrs tonne cif Rotterdam Jul11/Sep11 1182.50. PALMOIL: RBD dlrs tonne fob Malaysia Jul11/Sep11 1127.50-12.50. PALM OLEIN: RBD dlrs tonne fob Malaysia Jul11/Sep11 1135.00-12.50, Oct11/Dec11 1105.00-10.00, Jan12/Mar12 1102.50-10.00. PALM STEARIN: Dlrs tonne fob Malaysia Jun11 1115.0020.00. PALM FATTY ACID DISTILLATE: Dlrs tonne fob Malaysia May11 735.00+0.00. COCONUT OIL: Phil/Indon dlrs tonne cif Rotterdam Apr11/May11 2040.00-5.00, May11/Jun11 2025.00+5.00, Jun11/Jul11 1980.00-20.00, Jul11/Aug11 1960.00, Aug11/Sep11 1950.00, Sep11/Oct11 1940.00. CASTOROIL: Any origin dlrs tonne extank Rotterdam Jul11/Aug11 2650.00+0.00. Reuters

LONDON: Oil slipped to around $111 a barrel on Thursday, extending the previous day's $5 slide, after the International Energy Agency cut its global demand forecast and China raised banks' reserve requirements. In a monthly report, the IEA cut its 2011 global oil demand growth forecast to 1.29 million barrels per day (bpd) from 1.43 million bpd, citing high prices and a weaker economic outlook for developed economies. Brent crude fell $1.32 to $111.25 a barrel by 1350 GMT, adding to Wednesday's $5 drop, which was sparked by rising US gasoline inventories and falling domestic demand for the fuel. US crude lost $1.91 to $96.30. "We clearly have seen demand growth slowing compared to last year's level and we're seeing it very much concentrated where the price feed through is most direct, notably in North America in terms of gasoline," said David Fyfe, head of the IEA's Oil Industry and Markets division.

Indian sugar drops on weak demand MUMBAI: India's sugar futures fell on Thursday on sluggish demand in physical market amid an expected jump in the country's production, dealers and analysts said. "Summer-season demand was lower-than-expected. Cold drink makers were not buying aggressively this year," said a dealer based in Vashi spot market near Mumbai. Demand for the sweetener from ice-cream and cool-drink makers typically goes up during the summer. The most-active sugar for June delivery on the National Commodity and Derivatives Exchange (NCDEX) ended down 0.5 per cent at 2,753 rupees per 100 kg. In Kolhapur, a key market in top producing Maharashtra state, the most traded S-variety nudged down 0.15 per cent to 2,646 rupees ($58.8) per 100 kg. India's sugar mills have produced 22.6 million tonnes of the sweetener since the season began on Oct. 1, up 24 per cent from 18.2 million tonnes a year earlier, industry sources said on May 2. The country, which consumes about 22-23 million tonnes of sugar annually, is likely to produce 25 million tonnes in 2010/11, up 33 per cent from the previous year. Global sugar prices need to drop below the domestic price of ethanol in Brazil, top producer of the sweetener, to curb output at a time when the surplus on world markets is expected to surge, the Kingsman consultancy said on Thursday. India has approved around 30,000 tonnes of unrestricted sugar exports, kicking off overseas sales of a total 500,000 tonnes given an official green light on April 19, government sources said. -Reuters

Trade remained choppy, with prices paring losses after a report showed US initial jobless claims fell last week. Wednesday's tumble in prices drove oil volatility to its highest close since midMarch. Oil also fell after the Chinese tightening move, which comes despite initial signs of slowing in the economy. China is the

world's second-largest oil consumer and the source of much of its demand growth. The IEA said gasoline demand could "disappoint" this year as gasoline near $4 a gallon at the pump prompts Americans to drive less. "It is becoming increasingly clear that the high price level is dampening gasoline demand," said analysts at Commerzbank in a report. There could be further losses ahead for crude, according to

technical price charts. Brent could fall toward $105.21, according to Reuters analyst Wang Tao. It fell as low as $105.15 on May 6. "If you see it from a fundamental point of view, the price is still too expensive and far from an appropriate value," said Ken Hasegawa, a commodity derivatives manager at Japan's Newedge brokerage. Oil had staged a modest bounce earlier on Thursday, clawing back about $1, as investors focused on relatively strong demand growth in Asia. Implied oil demand in China, reached its third-highest level on record last month, but year-onyear growth slipped to 8.8 per cent after six consecutive months of double-digit gains. Even after the latest decline, Brent crude is up 17 per cent this year, having jumped to a 32month high above $127 last month, driven in part by fighting in Libya and the loss of its crude exports. -Reuters

Copper recovers from 5-month low, still fragile LONDON: Copper bounced from a five-month low to turn positive on Thursday as the dollar weakened but the metal still looked fragile on fears of slower economic growth and demand from top consumers China and the United States. Copper recovered some poise after China hiked its bank reserve requirement ratio yet again as the market started to think about an end to the country's tightening cycle in China. It gained in later trading as the euro hit a session high against the dollar after comments made by a European Central Bank policy maker were deemed favouring the single currency. Benchmark copper on the London Metal Exchange closed at $8,725 a tonne from an earlier low of $8,504.50 a tonne, its lowest since Dec 1. The metal used in power and construction closed at $8,700 a tonne on Wednesday. The latest lurch lower started on Wednesday after data from China showed industrial output growth eased more than expected in April, pointing to a cooling in the world's second-biggest economy. US data showed the world's largest economy struggled to gain momentum early in the second quarter, with retail sales posting their smallest rise in nine months in April and wholesale prices increasing more than expected. Copper's close below the 200day moving average at about $8,760 a tonne on Wednesday is seen as a strong bearish signal.

Also in the spotlight are stocks of copper in LME warehouses, which at 467,725 stand nearly 35 per cent above levels seen early in December and the highest since June last year.

Shanghai copper plunges The most-active July copper contract on the Shanghai Futures Exchange tracked losses on the London contract, shedding 3.2 per cent to 64,220 yuan a tonne at its close, bouncing off a session trough of 64,110 yuan, another five-month low. LME stocks of aluminium at above 4.59 million tonnes are still within touching distance of the record high above 4.64 million tonnes hit in January 2010. But prices for the metal used in transport, packaging and construction, have been supported by financing deals, which are estimated to have tied up about 70 per cent of LME stocks. Aluminium ended at $2,615 a tonne from $2,611 a tonne. Zinc was untraded at the close but bid at $2,140 from $2,160 a tonne, lead was also untraded but bid at $2,305 from $2,295. Tin closed at $29,300 from $29,100. Nickel fell to $23,791 a tonne, it lowest since December 23 on worries about lower demand from stainless steel mills, which account for about two-thirds of global consumption. It was untraded at the close but bid at $24,500 from $24,550. -Reuters

Gold, silver slide as commodities rout continues Silver drops 7pc, Shanghai Gold Exchange lifts margins LONDON: Gold and silver prices slid on Thursday, with silver tumbling more than 7 per cent, as renewed strength in the dollar and concerns over the outlook for economic growth sparked broad-based selling of commodities. Silver also came under heavy selling pressure after the Shanghai Gold Exchange lifted its margin requirements for silver again, traders said. Spot gold was bid at $1,488.50 an ounce at 1406 GMT against $1,499.75 late in New York on Wednesday, having earlier hit a low of $1,478.80. Silver fell as low as $32.57 and was later at $33.00 an ounce against $35.06. Gold dropped more than 1 per cent on Wednesday and silver nearly 9 per cent as hefty gains in the dollar prompted selling across com-

modities. They extended those losses as the dollar hit a fresh threeweek high against a basket of major currencies on Thursday, while concerns over the financial health of some smaller euro-zone economies kept the euro under pressure. Gold prices have dropped

more than 5 per cent and silver by around a third from the record highs they hit in recent weeks. Silver is underperforming gold after strongly outperforming it in the first quarter's rising market. The world's largest silverbacked exchange-traded fund, the iShares Silver Trust, reported an outflow of more than 45 tonnes on Wednesday.

Its holdings have declined by more than 480 tonnes since the end of April. Increases in the amount of money exchanges require to trade silver have rattled futures markets. Speculators have liquidated long positions in silver in both New York and on the Shanghai Gold Exchange in recent weeks, pressuring the metal. The gold:silver ratio -- the number of ounces of silver needed to buy an ounce of gold -- rose towards 44 on Thursday, having slipped to 31.7 in late April. From a technical perspective, it is finding support around current levels, but remains vulnerable. Among other precious metals, platinum was at $1,750.99 an ounce against $1,770.10, while palladium was at $706.22 against $701.50. -Reuters

WUHAN, CHINA: A farmer works on a dried field in Wuhan, Hubei Province of China. Farmers in most parts of central and southern China are worried about the harvest after seeing one of the driest springs on previous records. -Agencies

Raw sugar edges up; Cocoa falls LONDON: Cocoa fell on Thursday, swept up in another bout of selling on commodity markets, while raw sugar edged up holding above costs of production and arabicas firmed while remaining below a recent 34-year high. "Everyone's wondering if the commodity bubble has burst," said a London-based broker, adding this was leading investors to reduce their exposure to commodity markets and softs were no exception. Cocoa futures were lower, in line with weaker commodities, as the resumption of top producer Ivory Coast's cocoa exports weighed on prices. ICE second-month, July cocoa was down $81, or 2.6 per cent at $3,037 per tonne at 1419 GMT. Liffe July cocoa was down 31 pounds or 1.6 per cent to 1,881 pounds per tonne. Sugar futures also eased, pressured by expectations that the global sugar balance could swing into surplus. ICE July raw sugar futures were up 0.13 cent or 0.6 per cent to 21.07 cents a lb at 1421 GMT, while Liffe August white sugar was up 40 cents or 0.07 per cent to $594.80 per tonne in slim volume of 2,101 lots. Pierre Sebag of consultancy Sugar K Ltd said he saw immediate support at 20.50 cents a lb, above the eight-month trough of 20.40 cents touched on May 6. "The market is a bit feeble. There's a lack of confidence in the market," Sebag said. "It's make or break. 20.50 cents seems to be a critical line of defence." Thomas Kujawa of brokerage Sucden Financial said: "It seems the bulls are now on the endangered species list." Investor holdings in sugar have slumped to a two-year low on prospects of increased supplies, but signals are now emerging that investors and funds will pile back in as prices hold above costs of production. Coffee markets firmed, but were under pressure from the stronger dollar and risk averse sentiment. ICE July arabica coffee was up 1.5 cent or 0.55 per cent to $2.7465 per lb at 1423 GMT, below the 34-year peak of $3.0890 a lb hit on May 3. Liffe July robustas were down $4 at $2,510 a tonne. Reuters

Palm oil slips, tracks wider sell-off JAKARTA: Malaysian palm oil futures snapped a threeday winning streak on Thursday, tracking a second major sell-off in commodities, although investors said the demand outlook was improving. The benchmark July crude palm oil contract on Bursa Malaysia Derivatives closed down 1.3 per cent at 3,226 Malaysian ringgit ($1,082) per tonne. It earlier hit a low at 3,217. Overall traded volume was at 13,513 lots of 25 tonnes each, compared to 12,155 lots on Wednesday. "We are following other commodities but at the same time, the near-term technical outlook is pointing down," said one dealer. "We expect demand to improve but I'm sure they don't mind buying at lower prices. Palm oil has lost almost 15 per cent so far this year, down from a peak at 3,967 ringgit in February, on rising stocks and still weak demand. It fell to a six-month low last week

along with a broad sell-off in commodities as traders initially fretted over the state of the US economy and cut risk taking. "If you look at the supply and demand balance due to weather patterns -- supply is still a little bit tight," said Chris de Lavigne, palm oil analyst at Frost & Sullivan. "Prices have come off their highs (but) probably not to the same extent as metals and oils. If the rest of commodities drift lower, it will eventually drag us down a little bit." The most active January 2012 soyoil on China's Dalian Commodity Exchange fell about 1 per cent. ICDX's July CPO futures contract was at 9,515 rupiah per kg, compared to 9,370 rupiah per kg when it opened. Market volume was 641 lots of 10 tonnes each. Investors are also keeping a close watch on developments in Indonesia, the world's top palm oil producer, as it looks to make changes to its export tax. -Reuters

NY cotton closes lower as fresh sell-off weighs NEW YORK: US cotton futures reeled from investor sales to finish lower Wednesday as another round of liquidation hit the commodities sector, analysts said. The key July cotton contract on ICE Futures US dropped 1.10 cents to settle at $1.503 per lb, dealing from $1.4776 to $1.5512. The new-crop December cotton futures shed 0.73 cent to close at $1.2519 cents.\ Volume traded stood at around 17,600 lots, about a quarter below the 30-day norm, Thomson Reuters preliminary data showed. "The spillover from crude, silver and gold and the sharply higher dollar hit cotton," said Keith Brown, president of commodity firm Keith Brown and Co in Moultrie, Georgia. For the second week in a row, a flurry of liquidation sell orders battered the commodity sector and put fiber contracts under pressure. Those losses were

pared by sustained trade and possible mill buying, dealers said. The US Agriculture Department's monthly supply/demand report elicited almost no reaction in the market. Brown said the USDA's forecast of a rise in world cotton ending stocks in the 2011/12 marketing year (August/July) to 47.93 million (480-lb) bales from 42.52 million bales in 2010/11 was a "little negative" for futures. Open interest in the cotton market rose to 150,102 lots as of May 10, from the prior rally of 148,600 lots, data from the ICE Futures US showed. Open interest stood at 147,578 lots on May 6 which is the lowest level since October 2009, ICE Futures US said. Volume came to 19,551 lots as of May 10 versus the previous tally of 12,006 lots, exchange data showed. Reuters

Tokyo rubber plunges on weak oil TOKYO: Key Tokyo rubber futures slumped 5 per cent on Thursday on weakness in the oil market and wariness over demand, while a bearish technical outlook on rising supplies from producing countries further weighed on sentiment. The benchmark TOCOM rubber futures for October delivery settled down 21 yen at 362.2 yen per kg, down 5.4 per cent from Wednesday's settlement. The most active Shanghai rubber futures contract for September delivery fell 1,385 yuan or 4.4 per cent to close at 29,745 yuan per tonne from Wednesday's close of 31,130 yuan. Volume stood at 1.04 million lots. "With oil prices trading like yesterday and today, it hurt sentiment in rubber," said a technical analyst at a Japanese securities firm. "The market failed to top key resistance yesterday, and having fallen below a 200-day moving average today, it looks weak technically," he said. -Reuters

National Commodity Exchange Ltd Trading Summary Date

Commodity

12-May-2011 CRUDE100 12-May-2011 CRUDE100 12-May-2011 CRUDE100 12-May-2011 SILVER - 500oz 12-May-2011 SILVER - 500oz 12-May-2011 GOLD 01oz 12-May-2011 GOLD 01oz 12-May-2011 GOLD 01oz 12-May-2011 GOLD 100oz 12-May-2011 GOLD 100oz 12-May-2011 GOLD 100oz 12-May-2011 GOLD 12-May-2011 GOLD 12-May-2011 GOLD 12-May-2011 KILOGOLD 12-May-2011 KILOGOLD 12-May-2011 TOLAGOLD50 12-May-2011 TOLAGOLD100 12-May-2011 MINIGOLD 12-May-2011 MINIGOLD 12-May-2011 MINIGOLD 12-May-2011 MINIGOLD 12-May-2011 MINIGOLD 12-May-2011 TOLAGOLD 12-May-2011 TOLAGOLD 12-May-2011 TOLAGOLD 12-May-2011 TOLAGOLD 12-May-2011 TOLAGOLD 12-May-2011 IRRI6W 12-May-2011 RICEIRRI - 6 12-May-2011 RBD PALMOLEIN 12-May-2011 KIBOR3M 12-May-11 KIBOR3M

Contract Date

Price Quotation

Open

High

Low

JU11 JY11 AU11 JU11 JY11 JU11 JY11 AU11 JU11 JY11 AU11 MY11 JU11 JY11 AP11 MY11 MY11 MY11 MON TUE WED THU FRI MON TUE WED THU FRI 12MY11 AP11 AP11 11-Mar 11-Jun

US$ Per Barrel US$ Per Barrel US$ Per Barrel US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per Tola Per Tola Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per Tola Per Tola Per Tola Per Tola Per Tola Per 100 kg Per 100 kg Per Maund Per Rs. 100 Per Rs. 100

102.69 103.26 103.66 37.90 37.94 1515.30 1515.20 1515.00 1516.00 1515.70 1513.00 41245.00 41275.00 41485.00 41430.00 41439.00 48323.00 48323.00 42554.00 42597.00 42612.00 42525.00 42540.00 49149.00 49300.00 49676.00 49000.00 49615.00 3501.00 3505.00 5142.00 86.48 85.42

102.90 103.50 103.66 38.20 38.16 1517.20 1517.40 1517.80 1516.00 1515.70 1516.30 41457.00 41467.00 41485.00 41430.00 41439.00 48323.00 48323.00 42554.00 42597.00 42612.00 42525.00 42540.00 49329.00 49300.00 49676.00 49000.00 49638.00 3501.00 3505.00 5142.00 86.50 85.42

95.34 95.98 96.80 32.37 32.35 1478.40 1478.40 1479.00 1483.00 1487.80 1487.00 40626.00 40500.00 40671.00 40617.00 40626.00 47374.00 47374.00 41717.00 41760.00 41774.00 41788.00 41703.00 47999.00 48048.00 48064.00 48081.00 47983.00 3500.00 3504.00 5105.00 86.48 85.42

95.88 96.43 96.80 33.22 33.23 1487.20 1487.80 1488.40 1487.20 1487.80 1487.80 40644.00 40653.00 40671.00 40617.00 40626.00 47374.00 47374.00 41717.00 41760.00 41774.00 41788.00 41703.00 47999.00 48048.00 48064.00 48081.00 47983.00 3500.00 3504.00 5105.00 86.50 85.42

Traded Volume in lots 393 97 169 406 3,739 4,265 3,403 157 68 16 43 2 1 28 15 77 -

Previous Settlement Price 102.68 103.26 103.66 38.01 38.02 1515.10 1515.70 1516.30 1515.10 1515.70 1516.30 41457.00 41467.00 41485.00 41430.00 41439.00 48323.00 48323.00 42554.00 42597.00 42612.00 42525.00 42540.00 48975.00 49024.00 49041.00 48941.00 48958.00 3501.00 3505.00 5142.00 86.48 85.42

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

Current Open Interest Settlement in Lots Price 95.88 32 96.43 28 96.80 33.22 12 33.23 29 1487.20 1,000 1487.80 2,044 1488.40 2,504 1487.20 7 1487.80 1488.40 5 40644.00 1 40653.00 5 40671.00 40617.00 40626.00 47374.00 47374.00 41717.00 41760.00 41774.00 41788.00 41703.00 47999.00 27 48048.00 2 48064.00 16 48081.00 3 47983.00 44 3500.00 3504.00 5105.00 86.50 85.42 -

Dawn Harper, left, of the United States competes with her compatriot LoLo Jones on her way to winning the women's 100 meters hurdles at the Daegu Pre-Championships Meeting in Daegu

Hooper to be batting coach at high performance centre BARBADOS: A Carl Hooper, the former West Indies batsman, has been appointed batting coach at the Sagicor High Performance Center in Barbados. Hooper, who scored 11,523 international runs in 102 Tests and 227 one-day internationals for West Indies will move to Barbados from Australia, where he has lived since retiring in 2004. He has been appointed for the ongoing semester and will work with the centre's head coach Andre Coley, the former Jamaica wicketkeeper. Hooper's appointment comes after another former West Indies batsman, Desmond Haynes, agreed to be batting consultant to the national side for the ongoing series against Pakistan, as the WICB makes efforts to involved more ex-players in the development of cricket in the Caribbean. -Online

Stuart, new coach of New South Wales SYDNEY:Anthony Stuart, the former Australian fast bowler, has been appointed coach of the New South Wales state team, after Matthew Mott departed from the role at the end of the summer. Other applicants for the role included Mott's predecessor Trevor Bayliss, who enjoyed a successful stint as coach of Sri Lanka before choosing to return home to Australia following the World Cup. "I am extremely honoured to get the opportunity to coach the Blues," said Stuart, 41. "There is an excellent blend of experience and young talent within the squad and I look forward to working with an exciting group of players that are well placed to compete in the domestic competitions." Stuart shone brightly but briefly in his first-class and international careers, claiming a hat-trick against Pakistan at the MCG in 1997 in what turned out to be his final ODI appearance, before going on to a lengthy coaching apprenticeship. Most recently he has worked in New Zealand as the coach of Wellington, also presiding over the New Zealand A side in that time. -Online

Nadal back on form to reach Rome quarters ROME: Rafael Nadal quickly put behind him what he described as his worst clay performance in memory to streak into the Rome Masters quarterfinals with a 6-4, 6-2 win over Feliciano Lopez on Thursday. Just 24 hours earlier, the world number one cut a frustrated figure following his troubled three set victory over Italian qualifier Paolo Lorenzi in the second round. He told reporters after the game that he had played badly and couldn't remember a worse performance on this his favourite surface. Some suggested he might have been adversely affected by his loss to recent nemesis Novak Djokovic in the Madrid final on Sunday -- his first clay defeat in 10 outings against the world number two. But Nadal insisted he was feeling no pressure and that he would improve -- he claimed it wouldn't be possible to play so badly again.-Reuters

Friday, May 13, 2011

Haider reverses retirement decision LAHORE: Within months of announcing retirement citing death threats from match-fixers, Pakistan wicketkeeper Zulqarnain Haider has reversed his decision, claiming that the situation has changed. Zulqarnain, who returned home after fleeing the team hotel in Dubai last November to London, told the media that he had taken the decision to come out of retirement in national interest and he was now available for all cricket. "I have reversed my decision to retire from all cricket after consulting my family and friends and because of the changed situation now," he said. The wicketkeeper had fled the team hotel during a oneday series against South Africa in the UAE last year and landed in London seeking asylum after claiming that he had been given threats by an unknown person for not cooperating in fixing the series. After staying in London for the last six months, he finally returned home after meeting interior minister Rehman

Malik who assured him of full security in Pakistan.Zulqarnain, while announcing his retirement in London, had said that he took the decision to pinpoint the corrupt elements prevalent in Pakistan cricket. After his return to Pakistan, security agencies arrested four suspected bookmakers in Sialkot who confessed to making threatening calls to Zulqarnain. Until now the police has given no explanation why the bookmakers had threatened the wicketkeeper. "I took a decision in national interest but now after getting assurances from the government I want to play cricket again at every level," Zulqarnain said.He said so far he had not been able to meet with the Chairman of the Pakistan Cricket Board to discuss his future. The PCB has made it clear that Zulqarnain has to first respond in writing to the notice it had sent him last year for fleeing the team hotel without informing the team management -Online

Langer stays as Australiaâ&#x20AC;&#x2122;s adjunct coach SYDNEY: Justin Langer won't be one of the casualties of Australia's performance review - at least, not initially - after he was reappointed as the team's assistant coach for another year. Langer joined the off-field staff in 2009 as batting coach and by keeping him on, the board has ensured a coaching setup with plenty of Testmatch experience. His reappointment came on the same day that Craig McDermott was named bowling coach, and between them, Langer and McDermott have represented Australia in 176 Tests. Cricket Australia's general manager of cricket, Michael Brown, said Langer had been a valuable presence around the squad since he joined the staff. "Justin's record as a player and then over the last 18 months, as coach, leader and mentor within the Australia team coaching group, speaks for itself and we are all delighted he has agreed to continue his outstanding work with the Australia team," Brown said. However, despite Langer's "outstanding work", he faces a tough challenge to lift the output of Australia's batting order. Simon Katich, Michael Hussey and Ricky Ponting are all the wrong side of 35, and squeezing all three of them into the Test line-up in future might not be in the

long-term interests of Australia. Younger men such as Usman Khawaja, Phillip Hughes and Steven Smith will push for batting roles in the Test side, and will need to work closely with Langer in the Australian setup. One of his biggest tasks is to turn around the form of the new captain, Michael Clarke, who in the past year has made 367 Test runs at a dismal average of 21.58. The initial signs for Clarke's leadership, during the one-day tour of Bangladesh, were positive, but if he struggles for runs during his first two Test tours as leader, in Sri Lanka and South Africa, he will be under immense pressure to justify his promotion. "I'm excited about the opportunity to be an integral part of the resurgence of Australian cricket," Langer said. "I'm also thrilled at being able to take the next step in my development as a coach by being involved with such a committed and motivated group of people." While Langer's reappointment was largely a formality, he wasn't the only person interested in the role. Jamie Siddons, who recently finished a stint as Bangladesh's coach and was formerly an assistant with Australia, indicated last month he would have jumped at the chance to return to the Australian setup. -Online

Sri Lanka Premier League begins July 19

ROME: Anabel Medina Garrigues of Spain hits a return to Jelena Jankovic of Serbia during their match at the Rome Masters tennis tournament. -Reuters

SLanka launches own T20 league COLOMBO: Sri Lanka's cricket board on Thursday announced its own glitzy Twenty20 tournament, seeking to emulate the success of the hugely popular Indian Premier League. The first edition of the Sri Lanka Premier League (SLPL) will be played over 18 days from July 19 and will feature teams from the island's seven provinces and big international stars, according to a statement. "Twenty20's massive popularity and status as the most exciting and entertaining format of cricket will be further enhanced by this newest tournament to the world of cricket," read a Sri Lanka Cricket statement. While SLC kept mum on the international stars likely to take part, local media named the likes of Shahid Afridi, Chris Gayle, Daniel Vettori, Kieron Pollard, Daniel Christian, Herschelle Gibbs and Kevin O'Brien. The teams will play each other once, with the top four qualifying for the semi-finals. The winner of the tournament will qualify for the Champions League Twenty20, which is jointly promoted by the boards of India and South Africa. All the SLPL games will be day-night encounters and played at Colombo's R. Premadasa Stadium. Each squad can have a maximum of five international players but the starting XI can have only four of them. However, in contrast to IPL's high-profile auctions for players, international stars will be assigned to teams by the Sri Lankan national selection committee. The seven teams are Basnahira Bears, Kandurata Kites, Nagenahira Nagas, Ruhuna Rhinos, Uthura Oryxes, Uva Unicorns and Wayamba Wolves -APP

COLOMBO: Sri Lanka Cricket (SLC) have confirmed the dates for the first edition of the Sri Lanka Premier League will be from July 19 to August 4, 2011. The seven provinces will play 24 matches over the 18 days, all of which will be telecast live globally. That suggests a format in which all the teams will play each other once in a league stage, before two semi-finals and a final. Each team will only be allowed five overseas players in their squad, of which only four can be named in the XI. Several foreign players including Chris Gayle, Kieron Pollard, Shahid Afridi and Herschelle Gibbs have already been signed for the tournament. SLC also unveiled the team names for the provinces. The seven teams will be: Basnahira Bears, Kandurata Kites, Nagenahira Nagas, Ruhuna Rhinos, Uthura Oryxes, Uva Unicorns and Wayamba Wolves. The board plans to add two more provinces to the tournament within three years. -Online

22 entries in Chen One Inter-Media Tennis ISLAMABAD: Twenty two sports journalists have so far submitted their entries for the Chen One Inter Media Tennis Tournament starting at PTF Tennis Complex Islamabad from Saturday (tomorrow). Pakistan Tennis Federation in collaboration with Rawalpindi Islamabad Sports Journalists Association (RISJA) is organizing two day media tennis event which will conclude on May 15th. Former Davis cup captain and tournament director Hamid ul Haq said that 22 entries have so

far been submitted which includes Nasir Naqvi (Ausaf), Amir Bashir (PTV), Khurram Shahzad (Daily Times), Mohsin Ali (The Nation), Rasheed Safi (Mashriq), Rizwan Joji (AP), Nasir Aslam Raja (FM 100), Waqas Saeed (Online), Abbas Shabbir (AAJ TV), Faheem Anwar Khan (Nawai-e-Waqt), Abu Rehan (Samaa TV), Abdul Mohi Shah (The News), Shahryar Khan (Express TV), Haroon Siddiqui (Dunya TV), Afzal Javed (Online), Ayaz Akbar (Khyber TV), Vincent David (Islamabad Dateline),

Yasir Naushad (Islamabad Dateline), Namoud Muslim (PTV), Imran Ali Teepu (Dawn), Abdul Jabbar Faisal (Daily Mail) and Zahid Farooq Malik (PPI). Mian Kashif Ashfaq, Chief Operating Officer (COO) of Chen One and Irshad Bhatti Senior Vice President Pakistan Tennis Federation will be chief guests on the opening ceremony which will be held at 12:00 noon. The draws ceremony will be held on Friday (today) at PTF Tennis Complex Islamabad at 6:00 PM. -Online

Samsung signs Beckham as Olympic Games Ambassador

Peshawar Garrison club Tennis begins

KARACHI: Samsung Electronics Co. Ltd., a market leader in consumer electronics and

the Worldwide Olympic Partner for Wireless Communications Equipment, today announced an exclusive agreement with the legendary footballer David Beckham to be its global brand ambassador for the London 2012 Olympic Games. Beckham will raise awareness of Samsung's sponsorship of London 2012 as a Worldwide Olympic Partner, by appearing in multi-platform adverts and publicrelations campaigns.

PESHAWAR: Arbab Muhammad Arif and Asif The Managing Director, Orakzai off to flying start when Samsung Pakistan, Hee Chang they defeated their rivals in the Yee said; "Samsung and David opening match of the 2nd edition of the Peshawar Garrison Club Tennis Tournament, which got under way here on Thursday. GM Khan, an old member of the club was the chief guest on the occasion who formally inaugurated the tournament in which a total of 16 member players are taking part. In the opening match Arbab Arif and Asif Orakzai defeated Col. Munawar and Col. Dr. Khurram by 2-0, the score was 6-4 and 6-3 while in the second match Asim Durrani and Col. Beckham share a great number Amir Lodhi by 2-0, the score of common values ranging was 6-3 and 6-2. from their mutual commitment A total of 16 players compristo youth and their continuing ing Arbab Arif, Asif, Jan Ali, efforts to encourage more peo- Ghulam Habib, Col. Amir Lodi, ple to participate in sports. Col. Dr. Khurram, Dr. Yousaf, Beckham has been actively Fazal Muhammad, Rashid Ali helping young people around Khan, Asim Durrani, Azhar and, the world to enjoy a better life, Shafi are taking part. while Samsung wants the Member Provincial Assembly young spectators to enrich Standing Committee on Sports, their sporting experiences with Shagufta Malik will be the chief our leading smart mobile tech- guest at the final and prize distrinology. -Reuters bution ceremony.-Online

Economy & Continuations

Friday, May 13, 2011

Gasoline prices pinch US consumers in Apr WASHINGTON: The U.S. economy struggled to gain momentum early in the second quarter, with retail sales posting their smallest rise in nine months in April and wholesale prices increasing more than expected. Other data on Thursday showed new claims for unemployment benefits fell 44,000 last week to 434,000, but they remained too high to signal a strong labor market recovery. Retail sales increased 0.5 percent after an upwardly revised 0.9 percent gain in March as receipts at gasoline stations and grocery stores rose strongly, the Commerce Department said. Economists had expected a 0.6 percent rise. Excluding gasoline, retail sales rose 0.2 percent. It was the tenth straight monthly increase in sales and showed U.S. households exhibiting some resilience to lofty food and gasoline prices, which robbed spending from other areas. "The rise in retail sales was basically related to higher gasoline prices. Overall the report was good because it was positive, but the economy and consumers are still having trouble," said Eugenio Aleman, a senior economist at Wells Fargo Securities in Charlotte, North Carolina. Separately, the Labor Department said producer prices rose 0.8 percent in April, after a 0.7 percent rise in March. Economists had

expected a 0.6 percent rise. Financial markets showed little reaction to the economic reports. U.S. stocks were lower as falling commodity prices raised questions about the strength of the global economic recovery, while Treasury debt was little changed and the dollar was higher. The retail data implied consumer spending, which accounts for 70 percent of U.S. economic activity, got off to slow start in the second quarter as household budgets remained stretched by high food and energy prices. GASOLINE PRICES MAY FALL But a recent drop in gasoline futures pointed to a fall in prices at the pump, which could ease the strain on consumers. U.S. gasoline futures on Wednesday suffered the biggest daily drop since September 2008, with the June contract settling at $3.1228 a gallon, losing 25.69 cents, or 7.6 percent. Consumer spending grew at a 2.7 percent rate in the first three months of 2011, braking from a 4.0 percent pace in the October-December period, according to the Commerce Department's first estimate of GDP released last month. But upward revisions to March's figures suggested spending might have been stronger than initially thought. That was supported by another Commerce

Department report showing strong increases in business sales and inventories in March. Sales rose 2.2 percent, while inventories were up 1.0 percent. That rise in inventories also implied first-quarter gross domestic product growth could be raised from the 1.8 percent annual pace reported by the government last month. "Perhaps the big concern is that spending appears to have lost a lot of momentum at the start of the second quarter," said Paul Dales, a senior U.S. economist at Capital Economics in Toronto. Receipts at gasoline stations, which accounted for about 10.5 percent of overall retail sales in April, rose 2.7 percent after rising 4.1 percent the prior month. Gasoline prices rose 24 cents or 6.6 percent to $3.85 a gallon in April from March, according to the Energy Information Administration. SALES EX-GASOLINE TEPID Excluding gasoline, retail sales were up 0.2 percent after rising 0.5 percent in March. Sales at food and beverage stores rose 1.2 percent after gaining 0.2 percent in March. In the 12 months to April, overall sales were up 7.6 percent. Sales excluding autos rose 0.6 percent last month, building on a 1.2 percent gain in March and in line with economists' expectations. -Reuters

China raises bank reserves again to tame inflation BEIJING: China lifted bank reserve requirements by 50 basis points on Thursday, signalling that containing inflation and soaking up excess cash remained its top priority even after signs the economy was slowing down. The announcement of more tightening came as a surprise to some analysts who had expected the People's Bank of China to tap the monetary brakes more gently after a host of data from industrial output to imports were weaker than expected in April. To many of them, China's latest directive to lock up more of the deposits that banks would otherwise have lent was simply an attempt to drain inflationary capital inflows rather than opt for a rate rise, ostensibly a heavier monetary tool. "The central bank is moving the deposit reserve ratio again to soak up liquidity as hot money inflows and current account surplus remain large," said Xu Biao, an economist with China Merchants Bank in Shenzhen. The increase in bank reserves came a day after data showed China's factory output growth in April eased much more than expected, while annual increases in money supply and outstanding yuan loans hit their lowest pace in 29 months -signs that measures to slow the economy are starting to bite. Any signs the world's second-largest economy is slowing rather sharply or that the authorities have misjudged the policy balance between sustaining growth and capping prices could unnerve markets in energy and commodities. -Reuters

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Karachi and military dictator Pervez Musharraf was demonstrating his power by waving his fist in the corridors of power. JUI senator Dr Khalid Soomro said May 12 incident was the ever worst example of killing of its own citizens by the government. Senator Nilofar Bakhtiar said those opposing army are not doing right job. -Online

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Laden', said wives of the al Qaeda leader were "confined" and "all business" was kept away from them. "If they (wives) even asked him, he would refuse to discuss it," Sasson told CNN. Sasson said women in the bin Laden household were not allowed to see or meet with any person who came to visit him. "If any man came into the house to meet with them, these women would not have been allowed to see them, know who they were or show their faces. But (living) with him in the house in close quarters, there's an opportunity that they would know more of the comings and goings." Sasson said the wives, who are in Pakistani custody since the May 2 raid that killed bin Laden, may only be able to share "a few tidbits" with authorities. When asked if the wives would be willing to share information with US investigators, Sasson said, "possibly the one who is highly educated because she was a teacher and she was highly educated. Quite possible they might be able to reason with her." As for bin Laden's young Yemeni wife, Sasson said she doubted "seriously" that investigators would be able to get "anything" from her as she was "very uneducated and so devoted to him." It would be "hard pressed" to get information from the Yemeni wife, Sasson added. She further said bin Laden's relatives want proof that he is dead and are calling for an investigation into how he was killed. The family just really wants some answers. And they would just really like to know what exactly happened, why they weren't called. Sasson added that Omar had hoped that there either be a truce between his father and the US authorities or that bin Laden would be "put on trial like Saddam". Omar was "probably the only person around Osama who was brave enough to actually argue with him about the path he had taken... He actually had a couple screaming matches with his father about this kind of negotiation. He said there's a way to talk people and there's a way to do things. You should never kill anyone who is innocent," Sasson recalled. -Online

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Discussing regional issues, the Presidents underscored the importance of stability and peace in Afghanistan and reaffirmed their support for Afghan-led and Afghan owned efforts towards promoting national reconciliation in Afghanistan. The Presidents recognized the need for promoting trans-regional economic and trade cooperation. Regional development projects would ensure prosperity for the people of the region and it was important to optimally utilise national economic complementarities. They agreed to coordinate their efforts bilaterally as well as through regional multilateral cooperative mechanisms. In this regard, the two sides expressed keen interest in the implementation of projects related to the creation of a system to transmit electric power from Tajikistan to Afghanistan and Pakistan (CASA-1000) and to the building of a gas pipeline between Turkmenistan-Afghanistan-Pakistan-India (TAPI). President Zardari supported Russia's offer to participate in the projects and underscored the need for their early realization. Russian side welcomed Pakistan's involvement in the activities of Shanghai Cooperation Organization (SCO). Russia's support for Pakistan's joining the SCO along with other candidates was reaffirmed subject to the consent of all its members. The Russian side reaffirmed the willingness of Russian companies to cooperate with Pakistan. In particular, the state owned enterprise Tyazhprome Export is ready to take part in the modernisation of Pakistan Steel Mills in Karachi, while the INTER RAOUES would contribute to the building of energy generating facilities and Gazprom Zarubezhneftegaz to the development of gas fields in Pakistan. The two sides agreed to promote finance and banking sector cooperation and enhance bilateral trade and investment. In this context, they agreed to study the concept of currency change/barter agreements as well as offering incentives based on regime mechanism to promote their joint ventures. President Medvedev accepted President Zardari's visit to Pakistan on mutually convenient dates. -APP

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the right to assign the FEEL of any AD below 20 per cent of Paid-up Capital based on the trends observed in the utilisation of FEEL.

No #7

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that a pick-up vehicle was targeted in the strike. People in Miranshah, the administrative headquarters of North Waziristan, said that drones, locally known as "Bungara", hovered over the agency throughout the day. Thursday morning's strike is the 28th of its kind reported in Pakistan since this year. At least 202 people have reportedly been killed in such strikes since. -Online

The central leadership of PML-N was also in contact with senators, belonging to Baloch nationalist parties however, they have not taken any decision in this respect. Senator Ishaq Dar would become Opposition leader in Senate if Continued from page 1 No #8 PML-N gets backing of JI, PML-Q likeminded group and dissiwarned that any such attack in the future my result in the serident senators of PML-Q in Senate. ous consequences. JUI-F enjoys 10 seats in Senate and PML-N 7 seats. -NNI Cameron Munter was told that the US should not doubt the Continued from page 12 No #4 integrity of Pakistan in the war on terror otherwise Pakistan would jurisdiction under Articles 184, 185 but the Parliament could be forced to review its policy. also make legislation on the issue. The US ambassador was told that the negative propaganda by He said they wanted to know what would be the consequences the Western media was severely damaging the Pak-US relationof Article 186. ship and cooperation, which should be stopped. Dr Babar said that he was consistent in his stance and contendCameron Munter assured the Pakistani officials that he would ed that the apex Court had already said so many things on a convey their reservations to the US officials. He commended the Presidential Reference of 2007 on Hisba Act. role of Pakistan in the war on terror and said both the countries The Chief Justice said that if they set aside verdicts in conclud- should continue cooperation to ensure peace and security in the ed cases, there would be complainants as well like in a case of region. -Agencies Sindh High Court Bar Association. Continued from page 1 No #9 He said the problems they had been facing in the country, was arguments. due to non-adherence to the Constitution. -Agencies The four-member bench of the LHC, in its verdict, declared that Continued from page 1 No #5 the president's office was constitutional and impartial and the President Zardari and his Russian counterpart emphasized the Supreme Court had also declared the president's office as nonimportance of developing mutually beneficial economic coopera- political. tion between the two countries, which is to be promoted by the Advocate AK Dogar had filed the petition against two offices of Pakistani Russian Intergovernmental Commission on Trade, the president on behalf of the Lawyers Forum. Economic, Scientific and Technical Cooperation that held its first The court had appointed SM Zafar, Abid Hassan Manto and meeting in Moscow in September 2010. Abdul Hafeez Pirzada as amici curiae, but Pirzada did not give

any argument in the case. The court had reserved the judgment on March 10 after eight months of proceedings. Meanwhile, the president was informed about the LHC verdict in Moscow. On the other hand, the presidential spokesman has refused to comment on the court verdict. Presidential spokesman Farhatullah Babar said that he did not want to comment on the decision, adding President Zardari has been informed about the Lahore High Court (LHC) decision in Moscow. Talking to media by telephone, Babar said that the president had been informed about the decision. According to sources, the government would express its stance after consultations with legal experts. Commenting on the verdict, renowned lawyer Khalid Ranjha said that the president could suspend the court verdict while Supreme Court Bar Association chairperson Asma Jehangir said that court verdicts were hard to be implemented. Talking to the media, AK Dogar said that the president could face action if he failed to relinquish political office. The government has already started consultations and the verdict is likely to be challenged through senior law experts. -Agencies

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Thursday. Reserves held by the State Bank of Pakistan (SBP) fell to $13.59 billion from $13.70 billion a week ago, while those held by commercial banks rose marginally to $3.42 billion from $3.41 billion, said the SBP's spokesman Syed Wasimuddin. The fall was because of scheduled repayments, said Wasimuddin. Pakistan's forex reserves have grown steadily thanks to higher export proceeds as well as record inflow of remittances, hitting an all-time high of $17.95 billion during the week that ended on March 26. Reserves have since eased slightly on debt repayments. Remittances from overseas Pakistanis increased by 23.81 percent to over $9 billion in the first 10 months of the 2010/11 fiscal year, with $1.03 billion coming in April, according to the State Bank of Pakistan.

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with Online circular debt of petroleum sector has reached Rs 421 billion which stood at Rs 305 billion till December 2010. The documents revealed finance ministry had released Rs50 billion for payment of circular debt. But these funds were provided to Pepco under head of power tariff subsidy. Pepco later paid this amount to IPPS and PSO. Government disbursed Rs 160 billion to PEPCO during the period from July 2010 to March, 2011. On the other hand a sum of Rs210 billion were incurred on fuel supply Documents disclosed gap between power production cost and power tariff would be bridged and cash flows of Wapda and Pepco would be streamlined. Documents said that several companies were facing international default and they had obtained loans from several donors. Rs10 billion would be paid to Pepco and PSO per month till June 2011. -Online

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trust." Relations have deteriorated sharply since last November when the local CIA station chief was ousted, allegedly by the ISI - a charge the agency denies. They hit a low point amid the standoff over Raymond Davis, a CIA contractor who killed two Pakistani men in a January incident and then claimed diplomatic immunity. Further strain has been caused by the CIA's covert drone strikes against suspected militants in the tribal areas along the Afghan border. Despite his constant references to the trust-deficit, Gilani hoped to see a restoration of closer ties with Washington, but put the onus on Washington to gain the support of Pakistani citizens. "They should do something for the public which will persuade them that the US is supportive of Pakistan," he said. As an example, he enviously cited the 2008 US-India Civil Nuclear Agreement. "It's our public that's dying, but the deal is happening there," the prime minister said, adopting a wounded tone. "You claim there's a strategic partnership? That we're best friends?" Casting his eyes up at his chandeliered ceiling, Gilani reached for a verse. Meanwhile, Prime Minister Syed Yousuf Raza Gilani Thursday making a case for Pakistan to be granted access to civilian nuclear technology said the country had been operating atomic power plants for over 30 years and needed alternative energy sources like nuclear power to overcome a crippling shortfall of electricity. Addressing the inaugural ceremony of Chashma Nuclear Power Plant (C-2), the Premier said, the country is currently facing long hours of load-shedding. Our people in the rural and urban areas across the country have been affected, he added. He said that we are duty-bound to make every effort to overcome the prevailing crisis by exploiting all the available sources and avenues of power generation in the shortest possible time. Pakistan, he said, has been consistently complying with the requirements of nuclear safeguard agreements singed between the Government of Pakistan and the International Atomic Energy Agency - and this will continue to be our practice for all the civil nuclear power plants to be built in Pakistan in future. Completion of C-2 ahead of the scheduled time is a reward for the joint efforts of the Chinese and Pakistani teams, the benefits of which will go directly to the people of Pakistan, he said. He also appreciated Pakistan Atomic Energy Commission for their commitment, expertise and hard work in carrying out their complementary role in completing the project. The continued and safe operation KANUPP at Karachi for over three decades without any vender support, the very successful operation of C-1 at this sight, and the timely and within budget completion of C-2 have helped in laying the foundation of a strong and viable programme to use nuclear as an energy resource in the country, Gilani said. -Agencies

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security interests of the United States," a State Department spokesman said. Spokesman Mark Toner was responding to questions in the wake of moves made by a couple of lawmakers to curtail aid for the South Asian country following discovery of al Qaeda leader Osama bin Laden in a Pakistani town. He observed the lawmakers have some legitimate concerns on the issue but underscored the importance of assistance for both countries, who have worked closely to fight militants in the Afghan border region since 9/11 terrorist attacks. Washington's assistance for Pakistan, Toner remarked, is also "in the long-term interest of building a "or interest of building a stronger, more prosperous, and more democratic Pakistan." Meanwhile, reacting to concerns about bin Laden having lived undetected in a Pakistani town, Islamabad's ambassador to the United States Husain Haqqani told CNN that Pakistan "had no interest whatsoever as a nation, as a government, as a state in keeping Osama bin Laden" on its land. Haqqani said Pakistan is looking into bin Laden's presence in Abbottabad - before the militant was taken out by US forces in a midnight operation last week - and that Islamabad wants to get to the bottom of things. International security and regional experts stress that Pakistan's role is vital to achieving stability in its Western neighbor Afghanistan including through political means. The US-led allies also rely critically on Pakistan for transportation of supplies for Nato and American troops deployed on the Afghan soil. According to former US ambassador to Pakistan, Wendy Chamberlin, a massive amount of supplies still pass through Pakistan while the northern route through Central Asian states is very long and expensive. -APP

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average. Both the KBW bank index and the S&P financial sector shed 0.6 per cent. The Dow Jones industrial average dropped 16.04 points, or 0.13 per cent, to 12,613.99. The Standard & Poor's 500 Index shed 0.04 point to 1,342.04. The Nasdaq Composite Index gained 4.01 points, or 0.14 per cent, to 2,849.07.-Reuters

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company behind the rapidly-expanding Superdry fashion brand, plunged 22.5 per cent after reporting a slowdown in its phenomenal sales growth. Interdealer broker ICAP shed 2.1 per cent as peer Tullett Prebon knocked sentiment after posting shrinking revenue growth in the first four months of 2011. Atif Latif, director of trading at Guardian Stockbrokers, said: "IDBs are finding it tough at the moment, which is surprising as the market has been very volatile since January," Anglo-South African insurer Old Mutual joined the hit parade, down 3.3 per cent and disappointing investors with weaker than expected first-quarter life insurance sales. Private equity firm 3i Group rallied 6.7 per cent on relief that its writedown of the value of its fourth-largest company, Enterprise Group, was les than feared. Travel firms were also a feature on the upside as they benefited from a weaker oil price, Defensive stocks such as drugmakers and utilities were buoyant and analysts said their outperformance would be likely to last. "We suggest that (the recent defensive outperformance) is likely to continue in the next few months as we expect economic data to continue to indicate slightly lower rates of growth than enjoyed in the 2010, as a result of higher oil prices and monetary tightening especially in the US," Shore capital said in a note.-Reuters

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buyers of Japanese equities for six straight weeks, government data showed on Thursday. But Daiwa's Kinouchi said if investors avoid risk assets on falling commodity prices, "foreigners may stop buying stocks, including Japanese stocks." Volume was moderate with 2 billion shares changing hands on the Tokyo stock exchange's first section, broadly in line with this week's daily volumes reaching around 2 billion shares a day.-Reuters

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No sharing of US copter ruins, says Pakistan

ISLAMABAD: Prime Minister Syed Yousaf Raza Gilani is unveiling the plaque of the inauguration of Cashma Nuclear Power Plant 2 (C-2) at Kundian. -APP

ZAB case hearing

SC seeks original complaint record ISLAMABAD: The Supreme Court on Thursday directed Registrar of the Lahore High Court to submit record of a complaint registered by Kasuri's family in 1977 against late Zulfikar Ali Bhutto and upon which criminal cases were revived during Martial Law regime. He was also directed to submit record of five other private complaints which were registered during the period when trial of ZAB had already commenced before a Lahore High Court five-member bench headed by justice retired Safiur Rehman in Kot Lakhpat jail on February 2, 1978. The relevant record of ZAB's

bail acceptance order of justice retired Samdani, the arrest orders issued under Martial Law Regulations No 12, besides, two notifications regarding removal of justice Retired Yaqub Ali and elevation of justice retired Anwar-ul Haq as Chief Justice of Pakistan were also summoned. An eleven-member bench headed by Chief Justice Iftikhar Muhammad Chaudhry issued these directions during proceedings on a Presidential Reference sent to it under Article 186 of the Constitution by the President seeking its opinion over re-opening of Zulfikar Ali Bhutto's trial case under its advisory jurisdiction.

Resuming his arguments, Dr Babar Awan, counsel for referring authority, on question of apex Court's jurisdiction under Article 186, said that it had unfettered powers to give its opinion on any issue of public importance. Reading out Sindh High Court Bar Association verdict of July 31, 2009, he said the apex Court had upheld such a view. The Chief Justice questioned that the cited verdict was given under Article 184 (3) and how it could be linked with Article 186. Justice Jawad S Khwaja said that they understood their See # 4 Page 11

Indian PM reaches Kabul

Singh, Karzai talk post-Osama state KABUL: Indian Prime Minister Manmohan Singh Thursday arrived in Afghanistan for a two-day official visit and assured the Afghan leadership that India would stand by the Kabul government in all circumstances. Manmohan Singh was accompanied by National Security Advisor Shivshankar Menon, special envoy on Afghanistan SK Lamba and foreign secretary

Nirupama Rao. According to Indian media, shortly after he landed in the Afghan capital amid tight security cover, Singh was warmly received by Afghan President Hamid Karzai later Indian PM honored a ceremonial reception by the Afghan Police, the Army and the Air Force in the grand Presidential Palace. Singh, who last visited Afghanistan in 2005, is due to hold talks with Karzai on

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Friday, May 13, 2011

terrorism, Indian aid to the war-ravaged country and fallout of the killing of al Qaeda leader Osama bin Laden in Pakistan in the region. Indian government sources said that during the meeting with the Afghan leadership, India would also like to know the views of the government there on the situation after the killing of bin Laden during a covert US operation on May two. -Online

WASHINGTON: Pakistan's Ambassador to the United States Husain Haqqani has made it clear that his country would not share the wreckage of a US helicopter used in the raid that killed Osama bin Laden with China, after speculation that the aircraft contained secret technology. "Pakistan is not going to share any technology, and I don't think our friends in China have shown any interest in doing so," he said this in an exclusive interview to CNN. Responding to a question, he said, Pakistan and US were still "in-close-contact" and were trying to "get to the bottom of things." "The United States and Pakistan, at the governmentto-government level, the intelligence-to-intelligence level and military-to-military level, are in close contact," he said. "We are not in the business of denial or contradiction right now. We are trying to get to the bottom of things, understand the intelligence and work together," he added. "At the same time, we continue to be concerned about unilateral actions and would prefer if the United States works with Pakistan instead of making Pakistan look like the bad guy. -Agencies

'N' eyes opposition leader slot in Senate ISLAMABAD: Pakistan Muslim League (Q) likeminded group and dissident Senators of PML-Q have decided to back PML-N candidate Senator Ishaq Dar for slot of opposition leader in the Senate. Sources in the N-league informed Online that Senator Haroon Akhtar of PML-Q likeminded group contacted five dissident senators of PML-Q and PML-N leadership and decided to back PML-N instead of JUI-F in Senate for slot of Opposition leader. On the other hand, Jamat-eIslami (JI) is also mulling to support PML-N league in the Upper House. See # 3 Page 11

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Nato strikes after Gaddafi appears on TV TRIPOLI: Nato-airstrikes struck Moammar Gaddafi's sprawling compound in Tripoli and three other sites early Thursday, hours after the Libyan leader was shown on state TV in his first appearance since his son was killed nearly two weeks ago. Explosions thundered across the capital and ambulances raced through the city as the last missile exploded. Government officials and state-run Libyan television said the strikes targeted Bab al-Azaziya, Gaddafi's compound, but did not specify which buildings were hit. Reporters who were taken there later Thursday saw one missile-damaged building, and evidence that at least three missiles had hit the compound. Nato - which had no immediate comment on the latest strikes - has hit Tripoli repeatedly this week as part of its effort to weaken the regime's resistance to a 3month-old rebellion. Nato said most of the alliance's 46 air strikes were concentrated in and around the Libyan capital, hitting command and control centers, ammunition dumps and anti-aircraft missile launchers. In the eastern city of Benghazi, headquarters for

the opposition movement, rebel spokesman AbdelHafidh Ghoga claimed that anti-Gaddafi residents in the Tripoli area were staging peaceful demonstrations in many neighborhoods, prompting the regime to deploy troops and tanks in the streets that may have been diverted from other regions. Ghoga, who did not specify the source of his information, said anti-Gaddafi militants had burned a police station in one suburb, and were setting up night patrols and checkpoints in other neighborhoods. There was no immediate independent confirmation of his claims; the foreign journalists in Tripoli are assigned government minders and limited in their movements. After the early-morning airstrikes, medics arrived at Khadra Hospital with the bodies of two men they said were killed in the attack. One of bodies was charred; the other was covered by a green blanket, a leg dangling from the stretcher. From a bus ferrying reporters to the hospital, smoke could be seen rising from part of the Gaddafi compound. Skid marks left from screeching vehicles crisscrossed the roads around it. The medics said others had

Pak-India Wullar Barrage talks

India offers to alter barrage structure ISLAMABAD: Indian secretary Dharwajay Singh said on Thursday that India has the right to build the Wullar Barrage project under all conditions but a change in its structure or design can be discussed if Pakistan agrees. Pakistan-India secretary-level talks on Wullar Barrage/Tulbul Navigational project are being held in Islamabad. Pakistanâ&#x20AC;&#x2122;s Water and Power secretary Javed Iqbal said that the construction of Wullar Barrage is not acceptable other

than the framework of Indus Water Treaty. He also said Pakistan will not accept any project of India which may result in Indian control over the River Jhelum water. Sources said that Pakistan has firmed up its case to challenge another project being built by India on the Indus River in violation of the 1960 Indus Water Treaty. However, the Indian secretary said that the barrage is not in violation of the Indus Water Treaty and will be used only for transportation. -Agencies

been killed by the airstrikes and were still being retrieved from the compound. Gaddafi's compound has been a frequent site of recent airstrikes, including one on April 30 that killed the leader's son, Seif al-Arab. Nato has repeatedly said all its targets in Libya are military and that it is not targeting Gaddafi or other individuals. In an apparent effort to dispel rumors that Gaddafi himself had been killed, Libyan state TV showed him meeting tribal leaders, but did not record him speaking. To authenticate the scene, the camera zoomed in on the date on a TV monitor in the room, which read Wednesday, May 11. It was apparently recorded at the hotel where foreign correspondents must reside in Tripoli. Gaddafi did not make himself available to them. The last time Gaddafi had been seen in public previously was April 9, when he visited a school in Tripoli. "The NATO airstrikes and the sea embargo are badly influencing the lives of daily Libyans," he said. "We have some shortages in fuel, food and medicine. It makes it difficult to go to schools, hospitals and factories." -Reuters

Osamaâ&#x20AC;&#x2122;s wife may spill some beans WASHINGTON: The US investigators may get some information from one of Osama bin Laden's wives, who is a teacher and "highly educated", according to a close friend of al Qaeda chief's son who said it would be "hard pressed" to get details from them as they did not know of his plans. Jean Sasson, who had helped bin Laden's son Omar write a memoir 'Growing up Bin See # 2 Page 11

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