thefinancialdaily-epaper-16-05-2011 by The Financial Daily

International Karachi, Monday, May 16, 2011, Jumadi-ul-Saani 12, Price Rs12 Pages 12

National Judicial Panel discusses prison reforms

Mansha eyes major stake in Duabi bank

See page 12

UAE allots $100mn for Pak projects

See page 12

WIndies beat Pak to win first Test Match

See on Page 12 Economic Indicators $17.01bn 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% $1,051 176.03mn

Forex Reserves (7-May-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

Portfolio Investment SCRA(U.S $ in million)

241.19 Yearly(Jul, 2010 up to 12-May-2011) Monthly(May, 2011 up to 12-May-2011) 15.61 4.02 Daily (12-May-2011) 2823 Total Portfolio Invest (30-Apr-2011)

NCCPL (U.S $ in million)

FIPI (13-May-2011) Local Companies (13-May-2011) Banks / DFI (13-May-2011) Mutual Funds (13-May-2011) NBFC (13-May-2011) Local Investors (13-May-2011) Other Organization (13-May-2011)

0.95 -1.26 -0.46 0.36 0.61 -0.18 -0.01

Global Indices Index

Change

KSE 100

11967.35

Nikkei 225

9648.77

67.88

Hang Seng

23276.27

202.51

5.17

Sensex 30

18531.28

195.49

SSE COMP.

2871.03

FTSE 100

5925.87

19.09

Dow Jones

12595.75

100.17

26.95

Says this is time for some serious discussion KABUL/ ISLAMABAD: US Senator John Kerry on Sunday while talking to the media in Afghan Capital, Kabul said US relationship with Pakistan was at a "critical moment" because of the killing of al Qaeda leader Osama bin Laden and that there were growing calls to cut aid to the country. Meanwhile after arriving here in Pakistan, Senator Kerry calls on Chief of Army Staff General Ashfaq Parvez Kayani at GHQ Rawalpindi and discussed with him the situation created after US operation in Abbottabad. According to the media reports, both leaders deliberated the issued regarding war against terrorism and expressed the hope to resolve the issues amicably. Earlier in Kabul, Kerry said that

$.Price PKR/Shares 2.60 110.56 15.99 135.99 2.00 42.52 1.70 36.14 10.82 36.79 WASHINGTON: The admin-

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)

Pak-US ties hit bottom: Kerry

20-Apr-2011 20-Apr-2011 20-Apr-2011 26-Mar-2011 14-May-2011 14-May-2011 14-May-2011 14-May-2011 14-May-2011 14-May-2011 14-May-2011 14-May-2011 14-May-2011 14-May-2011 14-May-2011

13.25% 13.62% 13.87% 14.00% 13.32% 13.24% 13.57% 14.04% 14.18% 14.00% 14.06% 14.11% 14.46% 14.70% 14.90%

Commodities Crude Oil (brent)$/bbl Crude Oil (WTI)$/bbl Cotton $/lb Gold $/ozs Silver $/ozs Malaysian Palm $ GOLD (NCEL) PKR KHI Cotton 40Kg PKR

Hillary phones Zardari, talks two-way affairs ISLAMABAD: United States Secretary of State Hillary Clinton called President Asif Ali Zardari on telephone Sunday night and discussed with him the situation in the aftermath of Abbottabad incident. The President apprised her of the concerns expressed by Pakistan's Parliament over the US operation. Both the leaders agreed to move forward and resolve the issues. See # 9 Page 11 although Pakistan had in the past moment for anything except sacrificed much in the battle against very sober, serious discussion al Qaeda and its own domestic with an understanding that there insurgency, the killing of bin Laden is a lot at stake; there is no other by US Navy SEALs near the capi- way to put it. I think they understand that, we understand that," tal had raised questions. Pakistan was not told about the Kerry said in the Afghan capital. Kerry spent two days in raid in the city of Abbottabad Afghanistan meeting with until after it was completed. "We are at a moment where Afghan President Hamid we have to resolve some very Karzai, his Cabinet and US See # 10 Page 11 serious issues. This is not a

US in two minds on ties with Pak

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)

US Senator reaches Isb; meets Kayani

113.83 99.65 145.15 1,493.60 35.01 1,082 41,157 9,109

Subscribe now Tel: 92-21-35311893-6 Fax: 92-21-35388427 Email: editor@ thefinancialdaily.com

www.thefinancialdaily.com

istration of US President Barack Obama is divided over the future of its relationship with Pakistan following the killing of al Qaeda founder Osama bin Laden, The Washington Post reported Sunday. US commandos killed bin Laden in an urban compound only 55 kilometers (35 miles) from the Pakistani capital

Islamabad on May 2. The newspaper said that some officials, particularly in the White House, have advocated a strong US response. "You can't continue business as usual," the paper quotes one of several senior administration officials as saying who discussed the sensitive issue only on the condition of anonymity. See # 11 Page 11

Refiners offtake slips 5pc in 10M Ahmed Siddique KARACHI: Pakistan refineries offtake witnessed a decline of 5 per cent to 6.45 million tons in 10MFY11 against 6.8 million tons recorded in same period last year; primarily a reflection of plant closure of Parco and circular debt creating operational issues.

With major refineries in the country cutting down supplies to leading marketing company Pakistan State Oil (PSO), overall refinery sales dropped 6 per cent MoM during April 11 to 669k tons. In terms of individual products, Gasoline (Mogas), High Speed Diesel (HSD) and See # 12 Page 11

Gilani leaves for China tomorrow ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani will pay a four-day official visit to China from May 17 (Tuesday), to discuss with its leadership ways to strengthen bilateral ties that mark six decades of friendship. "The visit is important as it marks the joint commemoration of the 60th anniversary of diplomatic relations between Pakistan and China and also celebrates the Year of Friendship as designated by the leaders of two countries," Foreign Office spokesperson Tehmina Janjua said on Sunday. The Spokesperson said the Prime Minister will kick off the visit from Shanghai on May 17 where he will address the first conference of World Cultural Forum in Suzhou. The conference is being held under the theme "Dialogue and Cooperation for World Harmony and Common Development". She said during his stay in See # 13 Page 11

ISLAMABAD: President Asif Ali Zardari exchanging views with Prime Minister Syed Yousuf Raza Gilani at Aiwan-e-Sadr. Chief of Army Staff General Ashfaq Parvez is also present.-APP

President, PM, COAS

Troika confabs future strategy ISLAMABAD: Pakistan's power troika comprising President Asif Ali Zardari, Prime Minister Syed Yousuf Raza Gilani and Chief of Army Staff General Ashfaq Parvez Kayani met at Aiwan-e-Sadr Sunday, and discussed parliament's resolution over Abbottabad raid. According to Presidential spokesman, "current security situation was discussed in the meeting". The meeting came ahead of US Senator John Kerry's visit. Pakistan's parliament condemned on Saturday the US raid and called for a review of US ties, warning that Pakistan

could cut US supply lines to its forces in Afghanistan if there were more such attacks. Troika resolved to follow rational as against emotional path in reviewing Pakistan's ties with US in the light of unanimous resolution of the Parliament's incamera joint-sitting. "The country's top leadership, however, reaffirmed its commitment to safeguarding national dignity, sovereignty, and territorial integrity," sources privy to troika meeting told Online. An official handout stated that Prime Minister Syed Yousuf Raza Gilani called on See # 14 Page 11

Oil sales fall 4pc during Jul-Apr Staff Report KARACHI: The consumption of petroleum products during July-April in the country recorded a 3.8 per cent drop over the same period last year as unveiled by the OCAC numbers for 10MFY11. The total volume of the POL products (excluding non-energy) was recorded 16.03 million tons in 10MFY11 against 16.67 million tons recorded in same period last year. This was mainly due to decline in sales of High Speed

Diesel and Furnace Oil. High Speed Diesel (HSD) which contributes 35 per cent in total oil consumption and used as a transportation fuel showed a declining trend by 9 per cent with sales of 5.67 million tons against 6.23 million tons in 10MFY10 due to unprecedented rise in prices and demand dip due to slowdown in trading activities amid floods during the period. Despite the fact that country is facing power shortage and gas shortage in country for See # 15 Page 11

Pak, India trade fire at Sialkot sector SIALKOT/ SRINAGAR: One Pakistani was killed and 13 others including three Pakistani Rangers were injured on Sunday morning as Indian army fired across the border at Sialkot sector. According to a private TV channel report, the clash broke out at about 9:30 a.m. local time in the Bajra Ghari area of Sialkot, a city located in eastern part of Pakistan, which borders India. Local media reports said that the firing stopped following the retaliation by the Pakistani Rangers, a special armed force in Pakistan. See # 16 Page 11

US operation disgraced for honor: Shahbaz LAHORE: Chief Minister Punjab Mian Mohammed Shahbaz Sharif has said that US operation in Abbottabad disgraced national honor and pride, media reported. He said entire Pakistan is as gloomy over this incident as the incident of Dhaka Fall, which battered Pakistan's history in 1971. Chief Minister Shahbaz Sharif was addressing an award-distributing ceremony of position holders in the debate and essay-writing competitions here in Lahore on Sunday. See # 17 Page 11

Monday, May 16, 2011

Collection of motor vehicle tax

Fraud of billions in NBP branch detected

ISLAMABAD: A model walks on the ramp while wearing lawn dress during a fashion show at a local hotel. -Online

KARACHI: National Bank of Pakistan has instructed special auditors to look into the accounts of those branches of Karachi which are authorized to collect motor vehicle fees, after a corruption case of billion rupees came onto surface in the Civic Center branch. The regional chief has suspended five staffers of the bank including Operation Manager Haseeb, Collection Officer Kamran, Joint Custodian Masood, Head Cashier Hashim and Aftab Lakhu. The investigation of corruption scam has also been

stared by NBP's Central Anti Forgery Unit. The information regarding investigation and record checking by special auditors has made hustle and bustle in 10 to 12 branches in Karachi which are collecting motor vehicle tax as some clues of fraud were also found in these branches. The sources told Online that some officials of bank as well as a retired employee of excise office, Baighu were also involved in embezzlement of motor vehicle fees. Baighu conveys the money collected

on account of motor vehicle fee himself to National Bank Civic Center Branch where Operation Manager Haseeb and Manager Inayat Ullah Ansari use to receive the money in the evening after closing of bank. The son of Baighu who was not even employee of National Bank was working in the branch on important seat of revenue collection. The sources said that if the record of all branches might be checked thoroughly, the corruption of almost RS7 billion might be revealed.-Online

Environment awards KARACHI: National Forum for Environment and Health (NFEH) has invited nomination for 8th Annual Environment Excellence Awards (AEEA 2011) to industries and other business organizations which are following environment friendly guidelines and performance for promoting the cause of pollution-free environment. This was announced by Secretary Awards Committee NFEH Dr. Ruqiya Naeem in the meeting of NFEH Advisory Committee held at NFEH Office here Wednesday. -PR

Staff Correspondent

Sales & Marketing MEA & CIS Central Asia said "AOC has appointed Online Distribution as the distributors for Pakistan and are confident of desired penetration for

ESUP public speaking competition

Sino-Pak relations anniversary on 21st TFD Reports

TFD Report

KARACHI: Visitors taking keen interest in the surgical instruments displayed during a 2-day workshop organised by Dow University of Health Sciences in collaboration with Pakistan Orthopedic Association. -Online

World’s largest monitor maker enters Pak market ISLAMABAD: AOC, the global leader in display manufacturing, has said that it was determined to consolidate its leading position in the display business by entering new markets such as Pakistan. Speaking at the press ceremony, Suchit Kumar, DGM

KARACHI: Senator Haji Ghulam Ali, President FPCCI presenting FPCCI crest to H.E. Abbas Ali Abdul Hai Counsel General of Iran at the Federation House, Karchi. Dawood Usman Jakhura, Vice President FPCCI is seen in the picture.

AOC in the region's important market with their strong logistical and sale ability. M. Ibrahim Ojha CEO of Online Distribution speaking on the event said "Online Distribution has come a long way in last 3 years signing several distributions like AOC, Belkin, Dell, Fortinet and HP Procurve. AOC is the latest highlight and is like

feather in the cap. We are in full swing to make AOC the #1 monitor brand of Pakistan and to prove this fact we have already launched over 15 different models and sizes of

LCD and LED in Pakistan, including 3D gaming and Touch Screen Models." Commenting on the Pakistan entry, Brian Liu, VP - Sales, MEA & CIS Central Asia, said that AOC remained committed towards introducing practical solutions that take into account the diverse needs of today's world, whether it is

entertainment, gaming, presentations, displays or graphic applications. "Worldwide, the consumer market is demanding products that offer design func-

tionality, wider applications, green credentials and competitive pricing," he said. Brian pointed out the LCD market is evolving at a faster rate in these regions and AOC will be leveraging on their business partners to drive the sales in these crucial markets. "With years of in-depth market experiences, strong product knowledge, keen customer insights, powerful manufacturing background, sound cost structure, and solid financial standing AOC has the key to growth in this region," he said AOC debuts in the Pakistan region with a superior product range, including the world's slimmest VESA mounted monitor RAZOR. With a super slim and sleek look, AOC's new 'Razor' series are just 1.29 cm thick and are available in 18.5 inch to 23 inch sizes. Razor offers its users premium picture quality with a stunning Dynamic Contrast Ratio of 50 Million: 1, by far the highest in the Industry. This super high DCR gives the finest image details with a greater depth. According to the company's release, Razors USP is Minimum Thickness & Vibrant Colors.

Rs2.8billion projects done in 3-yrs: Smeda ISLAMABAD: The Small and Medium Enterprises Development Authority (SMEDA) has implemented as many as 28 projects worth Rs2,818.167 million during last three years to facilitate and promote small and medium entrepreneurship in the country. Under the Public Sector Development Programme, the SMEDA established prominent projects including Agro Food Processing Facilities in Multan and Gujranwala business centers, SME Subcontracting Exchange in Gujranwala and Women Development Centers in Lahore and Peshawar, sources said. Besides, the SME established cutlery institute of Pakistan in

Wazirabad, Glass Products Design and Manufacturing Centre and Revival of Hyderabad Leather Footwear Centre. These projects are operational and have been providing services to SMEs, sources said adding the projects have been established keeping in view the specific needs of the SME clusters and were being implemented by SMEDA in collaboration with both the public and private sector stakeholders. In addition, developing SME clusters of economic importance, SMEDA also has been working at the micro level through provision of technical assistance to SMEs in important industrial clusters to upgrade their skill and improve sys-

tems. "During the period, a total of 239 manufacturing units in textile/garments, auto parts, chemical, fan and foundry were upgraded," the sources added. Similarly 37 energy efficiency projects in light engineering, textiles and marble sectors were implemented during past three years. The SMEDA trained about 720 individuals in diverse range of subjects for enhancing industrial expertise through a training of trainers programme. The sources said that an SME Development Bill was also under for legislation by the federal government to promote this sector and help sustainable economic development. -APP

KARACHI: The English Speaking Union of Pakistan held its National Public Speaking Competition at Karachi, in which two finalists of each of the publicspeaking competitions held by its Karachi, Lahore and Islamabad Chapters, participated. The students were between 16 to 20 years of age. The two best speakers of this final round were selected by an eminent panel of judges to represent Pakistan at the International Public Speaking Competition to be held in London from May 23rd. - 27th., 2011. The eminent Panel of Judges were Daniel Tarshish, Deputy Head of Mission of the British Deputy British High Commission at Karachi, Dr. Christian Brecht, the Consul General of the Federal Republic of Germany, and Mrs. Marjorie Husain, the renowned Art Critic and Columnist of an English newspaper. The theme of the National Competition, as prescribed by ESU London, was "Lessons for the Future". The local ESUP Karachi Public-Speaking Competition was held on 24th March 2011. Students from 15 schools and colleges of Karachi competed and two were selected to represent Karachi in the final round. The eminent Panel of Judges consisted of Munnawar Hameed, Saeed Ahmed and Mrs. Shireen Naqvi. This year marks the 30 year Celebrations of the ESU International PublicSpeaking Competition in London in which representatives from 54 countries will participate. For the final round, the ESUP National PublicSpeaking Competition, the two student finalists from Lahore and the two student finalists from Islamabad were specially flown in to Karachi by the ESUP. Out of these six students who competed, the two best speakers selected to represent Pakistan in the ESU International English Speaking Union Competition, will now be sent to London by the ESUP.

KARACHI: Pakistan and China will commence celebration of their 60th anniversary of bilateral relations this year on May 21 in a befitting manner demonstrating the unique and all weather relationship between the two countries. A French company flirted with Security Papers Limited (SPL is a Joint venture of GOP-TurkeyIran) making budgetary offers but refusing to participate in international bidding citing law & order, security measures, tender conditions and lack of French insurances. Hubei MingFeng producer & seller of pulp to the 50,000 metric tons Chinese state owned banknote industry stepped in

to create competition in an earlier monopoly market. The Chinese firm also invited a delegation from SPL and showed them their pulp production facilities serving the quality conscious and growing Chinese Banknote industry. They together toured reputed machinery suppliers. A German consultant with 50 years of paper making experience and adviser to SPL also joined this delegation. Discussions with the General Manager of the Chinese firm through an interpreter reveal that entire SPL delegation including consultant were impressed with the ground realities as evidenced in the visit report. Numerous technical exchanges took place but all of a sudden they were served with a

notice of technical noncompliance. The General Manager has asked the independent consultant to come forward and place his technical evaluation on record for a transparent decision. The Chinese firm is said to have offered savings of millions of Euro's, a professional management team of experts, and machinery from reputed Chinese manufacturers including components from the secure and sensitive aerospace industry in full compliance to the tender specifications and are therefore most surprised to receive this shocking news. Last year China agreed to provide $15 Billion under the framework of the Pakistan-China five year development Program.

ISLAMABAD: President Rawalpindi Chamber of Commerce and Industry Ali Raza presenting a shield to Ambassador of Bangladesh Shurab Hussain during press briefing about upcoming exhibition in Dhaka at Islamabad Club. -APP

UNISAME forewarns

‘Pull up socks before heavy monsoon flood’ TFD Report KARACHI: The Union of Small and Medium Enterprises (UNISAME) has invited the attention of the government to the indications of heavy monsoons and floods and urged the government to be prepared to overcome the adverse situation arising out of the downpours and water logging. President UNISAME Zulfikar Thaver said there are possibilities of floods this year due to expected heavy rains and lack of disaster management facilities and urged the authorities to look into the matter seriously in good time and take necessary action wherever required for preventing

water clogging. He lamented that many SME farmers are complaining that the authorities have not taken measures and seem unprepared for the rainy season and have not even completed the jobs undertaken to rectify last years floods and the situation is alarming both in terms of previous damages and expected shortcomings and failure of the corrupt officials and contractors who have shown that jobs have been completed on paper but in reality no preventive or repair work has been done. He urged the authorities to take notice of the situation and begin work immediately to save the SME farmers from losses and displacement.

KARACHI: Federal Minister for Labour, Manpower & Overseas Pakistanis Dr. Farooq Sattar addressing during a function to pay tributes to Professor Dr. Nishat Mallick (Shaheed) at KMC Sports Complex on late Staurday night. -APP

Monday, May 16, 2011

Greenback weekly outlook

Dollar seen gaining further; Trichet says inflation at peak Euro posts worst 2-week performance in a year NEW YORK: The US dollar rose to a five-week high against major currencies on Friday as renewed worries about possible euro-zone sovereign debt restructuring continued to drive a broad pullback from risky trades in commodities, stocks and higheryielding currencies. The euro fell against most currencies, dropping to a six-week lows against the dollar and the yen on renewed concerns Greece may restructure its debt. European Central bank President Jean-Claude Trichet also contributed to the euro's fall as he dampened expectations about interest rate rises in the euro-zone, saying that inflation was at its peak. "This is a risk-asset unwinding story ... The real driver seems to

be a growing sense that the strength of the global recovery is diminishing," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey. Dolan cited weakness in industrial production and retail sales numbers in the major economies, including the United States and China. In late Friday trading, the ICE Futures' dollar index rose as high as 75.949, the highest since April 5, before closing at 75.811, up 0.8 per cent. The euro closed down about 1.0 per cent at $1.4097, after hitting a session low at $1.40650 on trading platform EBS. Over the last two weeks, the euro has declined 7.3 per cent, its weakest two-week showing since mid-May last year. A meeting of Eurogroup

Specs trim dlr shorts, go long yen: CFTC NEW YORK: Currency speculators trimmed bets against the dollar in the latest week and opened a long position in the yen for the first time in six weeks, data from the Commodity Futures Trading Commission showed on Friday. The value of the dollar's net short position fell to $27.68 billion in the week ended May 10, from a two-month high of $35.01 billion a week earlier, according to CFTC and Reuters calculations. The move came as concern about the strength of world growth hurt higher-yielding assets such as stocks, commodities and currencies such as the Australian dollar and caused investors to bail out of trades financed with the US currency. Speculators trimmed bets in favor of the Australian dollar, the pound and the euro, which has been hurt by concern that Greece will be forced to restructure its debts. They also flipped to a long yen position for the first time since the week ended March 29. Speculators have been betting against the dollar since July 2010, according to CFTC data, and the value of the net dollar short position has held above $25 billion since March. Worries about large US deficits and expectations that the Federal Reserve will hold interest rates at record lows well into 2012 have dulled the dollar's appeal in recent months. -Reuters

Wheat, soy fall on firm dlr, rain forecasts CHICAGO: US wheat and soybean futures each fell about 1 per cent on Friday, with wheat notching its lowest close in nearly two months, as the dollar firmed and rains were forecast for the southern US Plains which should benefit the drought-ravaged wheat crop. Corn futures struggled to hold slight gains in light trading but rose modestly for the second straight day as flooding and rains delayed plantings in the US Midwest. Wheat fell 3.8 per cent for the week, its third straight week of losses. Corn lost 0.5 per cent, capping the second week in a row of lower prices. Soybeans finished the week nearly unchanged. Wheat for July delivery settled 73/4 cents lower at $7.27-3/4 per bushel at the Chicago Board of Trade while July soybeans ended down 13-1/4 cents at $13.29-1/2 per bushel. CBOT July corn rose 1-1/2 cents to $6.82. Showers are forecast for the middle of next week in the US hard red winter wheat belt, which was been devastated by the worst drought since the Dust Bowl.-Reuters

finance ministers, followed by an Ecofin meeting of EU finance ministers on Monday, could provide further direction for the euro. "The better tone of the dollar has coincided with the latest bout of negative pressure on the euro," said Jane Foley, senior currency strategist at Rabobank in London. "The conclusion that Greece will be forced into a default sooner or later if there is no further support from the EU/IMF had become increasingly widespread." German publication Die Welt reported on Friday that the European Union and International Monetary Fund are ready to agree to a restructuring of Greek debt, news that further undermined the euro. The euro rose in earlier trade, hitting session peaks above $1.43 after strong first-quarter GDP data from the euro-zone's biggest economies, Germany and France, prompted demand from Asian sovereign names and European leveraged and unleveraged accounts. The better-than-expected eurozone economic data bolstered expectations that European interest rates will remain higher than their US equivalents. By contrast a report showed US consumer prices rose as expected in April, giving little sign of a broader pick-up in inflation that would trouble the Federal Reserve. Elsewhere, weakness in commodities drove declines in commodity-linked currencies. The Australian dollar fell 1.1 per cent to US$1.0558, while the New Zealand currency sank 1.2 per cent to US$0.7860. -Reuters

Raw sugar climbs, coffee ends mixed NEW YORK/LONDON: Soft commodity futures, pummeled by a commodity-wide sell-off for the second week in a row, calmed down on Friday although the market was jittery as players wondered if it would be hit by further volatility next week. Prices were mixed with raw sugar futures clawing higher as it was bolstered by tight prompt Brazilian supplies, coffee was mixed and cocoa dropped with the trade looking at the flow of cocoa exports from top producer Ivory Coast after a civil war there. Volume in all soft commodity markets ranged from 10 to 40 per cent below the 30-day norm, Thomson Reuters preliminary data showed. New York's July raw sugar contract gained 0.12 cent to close at 21.45 cents per lb while the August white sugar futures in London added 70 cents to finish at $602.80 a tonne. Raw sugar climbed, underpinned by tight new-crop availability from Brazil as mills maximized the crush of cane into ethanol. Sugar output in Brazil's centresouth in 2011/12 through May 1 fell 69 per cent from a year ago as rains through mid-April hindered cane harvesting and mills prioritized ethanol production, data from the sugar cane industry association Unica showed on Thursday. Coffee

futures were mixed as analysts feel the downturn in bean values is clearly overdone. ICE Futures US July arabica coffee contract fell 5.55 cents or by 2.0 per cent to close at $2.694 per lb. The July robusta futures in London rose $16 to end at $2,527 per tonne. Last week's sell-off in the commodities sector was most apparent in the arabica coffee market. The weekly US Commitment of Traders data showed managed money accounts in coffee reducing their net long futures and options position by 6,071 lots in the week to May 10 to 29,829 lots and they cut their speculative noncommercial net longs by 6,291 lots to 17,714 lots. Cocoa prices were also slightly lower although the market seems to be in consolidation mode. New York's July cocoa contract fell $35 to close at $3,002 per tonne. London's July cocoa contract shed 3 pounds to finish at 1,871 pounds per tonne. The release of stocks from Ivory Coast after a political crisis, combined with a large global surplus expected in 2010/11, weighed on near term prices. More than 90 per cent of Ivory Coast's stockpiled cocoa has retained its quality despite being stuck in warehouses for over three months during a violent political standoff, exporters said on Friday. -Reuters

NY cotton ends mixed NEW YORK: US cotton futures settled mixed on Friday as the market tried to find its footing after another sell-off in the commodities sector this week, analysts said. The key July cotton contract on ICE Futures US increased 0.85 cent to close at $1.4515 per lb, dealing from $1.4206 to $1.4849. On the week, the market is down 0.28 per cent. The new-crop December cotton futures lost 3.58 cents or by 3.0 per cent to finish at $1.1561 per lb. Volume traded stood around 14,400 lots, almost two-thirds below the 30-day norm, Thomson Reuters preliminary data showed. The weekly CFTC report

showed managed money accounts increasing their net long positions in futures and options by 1,477 lots to 12,982 lots as of May 10, and non-commercial net long positions by speculators were up 1,822 lots to 25,631 lots. Investors were buying the spot July contract and selling the December contract, mainly because of belief that a major cotton merchant would decertify over 300,000 (480-lb) bales of cotton and deliver it against the board, dealers said. Sharon Johnson, senior cotton analyst at commodity brokerage Penson Futures, said reports of some rains falling in Texas probably pressured investors who

were long in the December contract to dump their holdings. But she added that she is "bullish" new-crop futures because of the severe weather problems plaguing the US cotton crop. Open interest in the cotton market stood at 149,170 lots as of May 12, from the prior rally of 150,125 lots, data from the ICE Futures US showed. Open interest was at 147,578 lots on May 6, which is the lowest level since October 2009, ICE Futures US said. Volume traded in the cotton market was at 19,584 lots as of May 11, versus the previous tally of 19,551 lots, exchange data reported. -Reuters

Sterling ends wk down on growth woes LONDON: The pound weakened against most of its major peers this past week as signs the UK economic recovery is faltering heightened speculation that the Bank of England won't raise interest rates anytime soon. Sterling depreciated more than 1 per cent against the dollar and also fell versus the yen. Risks to economic growth remain "skewed to the downside," the central bank said in its quarterly inflation report. Price growth may quicken to 5 per cent this year, it said. Statistics this past week also showed UK industrial and manufacturing production increased by less than economist forecasts. Traders scaled back bets on when policy makers will boost borrowing costs. "We're starting to see some of the effects of the government spending cuts feed through to the real economy and that's causing rate hike expectations to be pushed back," said Chris Walker, a currency strategist at UBS AG in London. "The pound has very much moved in tandem with rate expectations. It's looking a bit vulnerable now." The pound lost 1.2 per cent in the five days to $1.6173 as of 5:21 p.m. in London, its second consecutive weekly decline. Sterling strengthened 0.4 per cent against the euro in the period, trading at 87.07 pence. The UK currency depreciated 1.2 per cent versus the yen to 130.42. Money markets pushed back expectations for a 25 basispoint increase in the UK's benchmark rate to January in the week, Tullett Prebon Plc sterling overnight interbank average forwards data show. At the start of the week the data favored a quarter- point rise in the main rate by December, compared with March predictions for an increase as early as this month. The Bank of England will release the minutes from its May 5 meeting on May 18.Agencies

US copper finishes firm NEW YORK/LONDON: Copper finished firm on Friday, reacting to upbeat data from the United States and Europe that helped restore some market confidence and economic recovery optimism. Still, it was an extremely volatile week for the industrial metal, with prices plumbing five-month lows, as investors moved back and forth between 'risk-on' and 'risk-off' trades due to lingering concerns about subdued Chinese demand patterns, a resurgent dollar, and the increasingly violent swings in markets like silver and crude oil. London Metal Exchange (LME) copper for three-month delivery closed up $65 at $8,790 a tonne. Despite the positive finish, prices shed over 5 per cent on the week for a second-straight weekly decline. In New York, the July COMEX copper contract rose 1.30 cents to settle at $3.9835 per lb, but remained pinned beneath its 200-day moving average at around $4.01. With prices under pressure, open interest in COMEX copper continued to erode from its January peak, falling nearly 30 per cent to its lowest since October 2009. Even with this week's increased market volatility, Europe's No.2 copper producer, KGHM, expects copper prices to average $8,000-$9,000 per tonne this year. Stocks of copper in LME warehouses rose 800 tonnes to 468,525 tonnes, nearly 35 per cent above levels seen early in December, latest data showed. LME stocks of aluminium rose by 32,075 tonnes to 4,622,825 tonnes -- well-within reach of the record high above 4.64 million tonnes hit in January 2010. Cash aluminium traded at a premium against the three month contract of $19.50 versus $8 on Thursday. Three-month aluminium, untraded in rings, was bid at $2,565 a tonne from $2,615 a tonne. -Reuters

Asia currencies

Mostly log losses for wk, led by Korean won SINGAPORE: Asian currencies completed a weekly loss, led by South Korea's won and India's rupee, as concern Europe's debt crisis will worsen bolstered demand for dollars. The won dropped to a threeweek low after Bank of Korea unexpectedly left interest rates unchanged. The yuan had its sharpest weekly decline in two months as China raised lenders' reserve-requirement ratios for the fifth time this year and government data showed industrial output moderated in April. "This week there was a commodity sell-off and concern on Greece's debt crisis," said Joanna Tan, a Singapore-based regional economist at Forecast Singapore Pte. "The underlying sentiment in Asian currencies is caution with Europe's problems still ongoing and worries about commodities." The won declined 0.2 per cent for the week to 1,086.45 per dollar. The rupee fell 0.2 per cent to 44.8675, Singapore's dollar

dropped 0.4 per cent to S$1.2399 and the yuan retreated 0.08 per cent to 6.4982. Euro-region finance ministers will meet this week to discuss more support for Greece, Luxembourg's JeanClaude Juncker, who leads the group, said May 12. The nation has already been granted a 110 billion-euro ($158 billion) bailout, while Ireland and Portugal have also received financial aid from the European Union. "The Greece situation remains a big risk in the background," said Nik M. Khairul, a treasury dealer at Asian Finance Bank Bhd. in Kuala Lumpur. "Commodity prices and China's economic activity are pointing down, which creates question marks on future rate increases in Asia." The Bank of Korea kept its seven-day repurchase rate at 3 per cent, a move predicted by two of 14 economists surveyed. Bank Indonesia kept its benchmark rate at 6.75 per cent May 12, a decision predicted by all 10 econo-

mists in a survey. "Expectations for a rate increase had been limiting declines in the won last week," said Yun Se Min, a currency dealer at Busan Bank in Seoul. The currency closed 0.7 per cent stronger after earlier gaining as much as 10.5 per cent. Thailand's baht rose 0.1 per cent this past week. The currency rebounded from its biggest oneday decline in four months on May 12 after Fitch Ratings raised the outlook on Thailand's localcurrency credit rating to stable from negative, citing an earlierthan-expected stabilization of the nation's finances. Elsewhere, the Philippine peso declined 0.2 per cent this past week to 43.22 per dollar. Taiwan's dollar gained 0.5 per cent to NT$28.635 and Malaysia's ringgit fell 0.2 per cent to 3.0090. Indonesia's rupiah gained 0.3 per cent to 8,553, while Vietnam's dong was little changed at 20,570. -Agencies

Canada dollar tracks euro lower, growth woes weigh TORONTO: Canada's dollar hit its weakest level against the greenback in more than six weeks on Friday, driven lower by a broad rally in the safehaven greenback and a selloff in the euro as worries about global growth mounted. The euro, a recent barometer of risk appetite, tumbled against the US dollar after European Central Bank President JeanClaude Trichet spooked investors ahead of a Monday meeting of Eurogroup finance officials. In an interview on Spanish television, Trichet said that euro-zone inflation was at a peak and the central bank would do everything necessary to deliver price stability. "This week one of the focuses

has been the trajectory of global growth softening a little bit," said Camilla Sutton, chief currency strategist at Scotia Capital. Data on Friday showed the German and French economies propelled growth in the eurozone well above forecasts in the first quarter while also highlighting the yawning gap between the bloc's strong and weak members. "Even though we had fabulous growth data from the euro-zone, the market just focused on the divergence between core Europe growth and periphery European growth," Sutton said. The Canadian dollar ended the North American session at C$0.9687 to the US dollar, or $1.0323, down from Thursday's

close at C$0.9623 to the US dollar, or $1.0395. The currency ended the week 0.2 per cent lower. Earlier in the day, the Canadian dollar broke through a key technical support level around C$0.9720 and fell as low as C$0.9745 versus the greenback, or $1.0262, its weakest level since March 30. Sutton said the next support level for the currency is the 100day moving average around C$0.9780. Helping to contain the losses for the commodity-linked currency, oil prices rose in late short-covering, after a volatile session whipsawed by the European economic concerns and news that Libyan leader Libyan leader Muammar Gaddafi may have been wounded. -Reuters

Oil rises in late short covering, ends wk higher NEW YORK: Oil rose on Friday in late short-covering, ending the week higher after a volatile session whipsawed by European economic concerns and news Libyan leader Libyan leader Muammar Gaddafi may have been wounded. Trade volumes slowed after a week of heavy activity that saw big swings of more than $11 a barrel between the highs and lows. Brent crude ended up nearly $5 on the week, after dropping $16 last week as the market digested a wide range of factors fogging the supply and demand outlook, including the death of Osama bin Laden, the impact of high fuel prices, euro-zone debt worries and consumer nation monetary policy. Buyers came in late Friday ahead of the weekend after gains in the dollar sent prices down just before midday in New York. "Crude prices rose near the close on short-covering ahead of the weekend," said Tom

Knight,senior trader of Truman Arnold in Texarkana, Texas. Brent crude rose 85 cents to settle at $113.83 a barrel after hitting as high as $114.92 earlier. US crude traded up 68 cents to $99.65 a barrel. Volumes eased compared with the strong trade seen over the last week, but were close to the 30day moving average near the close. Oil came under pressure after comments from Italian Foreign Minister Franco Frattini that Gaddafi had likely been wounded and left the capital Tripoli. Libyan state television later carried brief audio remarks in which he taunted NATO and said he was in a place they could not reach. Conflict in the OPEC nation has slashed exports, helping send prices this year to peaks not seen since 2008. Many experts expect the country's output could be reduced for most of this year. Oil prices got an early boost as strong economic data from Germany and France pushed first-

quarter growth in the euro-zone well above forecasts, boosting the euro against the dollar. A meeting of Eurogroup finance ministers, followed by an Ecofin meeting of EU finance ministers on Monday, could provide further direction to the single currency and the euro is likely to remain pressured until at least after investors digest any outcome. Early support also came from news China will stop exporting diesel to conserve supplies ahead of a looming summer power crunch, signaling the world's top energy user may need net imports to cover surging demand. Markets were watching rising waters on the Mississippi, where the US Army Corps of Engineers plans to open a spillway to divert floodwaters ways from Louisiana refineries. Operations at Alon's small Krotz Spring, Louisiana refinery will be impacted by the diversion -- which could be done as early as Saturday, however. -Reuters

Gold ends week flat, dlr rally triggers selling NEW YORK: Gold fell on Friday, sharply reversing early gains, as a dollar surge against the euro and renewed uncertainty about euro-zone debt prompted investors to sell ahead of the weekend. Silver continued to recover from last week's 25 per cent correction, and technical charts suggested the metal could stabilize after bouncing off a key support level. "It's mostly position squaring over the weekend," said Axel Merk, who manages $700 million mutual fund assets at Merk Investments. "We've had this dramatic run-up week after week in both gold and euro." "The good news is that it shakes out the trend chasers and momentum traders coming into these markets, and what you end up are stronger hands who are

buying gold and euro in the long term," he said. Spot gold fell 0.7 per cent to $1,492.50 an ounce by 1908 GMT, having earlier risen as high as $1,516.40. US gold futures for June delivery settled down $13.20 at $1,493.60, after trading in a range from $1,482 to $1,516.40. For the week, gold was flat after shedding nearly 5 per cent last week during a commodity rout. Money managers cut bullish bets in COMEX silver futures and options to the lowest level since January, as prices tumbled as much as 30 per cent from a record high near $50 an ounce, and they also slashed net longs in gold during the period, US regulator data showed. Silver was up 1.2 per cent at

$34.62 an ounce. It still lost about 1.5 per cent for the week after notching its worst weekly performance since 1980 last week. Silver had lost as much as 30 per cent from its record high of $49.51 an ounce set on April 28. Silver was still up 13 per cent this year, and it was also the top performer in the commodity complex with a 90 per cent gain in 2010. The largest silver ETF, the iShares Silver Trust, reported its holdings slipped another 24.3 tonnes on Thursday. Although silver is outperforming other precious metals on Friday, it is expected to suffer further losses. Platinum eased 0.1 per cent at $1,760.24 an ounce, while palladium fell 0.9 per cent to $704.49. -Reuters

Monday, May 16, 2011

The Financial Daily International

SYED ALI RAZA:

Vol 4, Issue 189

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

Discouraging import of used-cars With the announcement of federal budget getting closer various pressure groups seem active in getting their suggestions approved at the highest level. One of these is allowing import of secondhand cars, pleading that it would help in bringing down prices of locally assembled cars. The perception being created is that allowing import of used cars will help in bringing down prices of used vehicles and also help the government in mobilizing additional revenue. However, some sector experts say such a decision will 1) open floodgate and all sorts and types of vehicles will be imported; 2) cause huge drain of foreign exchange reserves; 3) massive corruption at embassies and consulates and above all 4) adversely affect the local car manufacturing industry, already operating at nearly half the installed capacity. Therefore, it is suggested that the government should abstain from allowing import of used cars. While it may be true that lately assemblers have increased prices in quick succession but blaming them without finding the reasons responsible for this increase is unfair. According to auto sector experts the prime factors responsible for price increase are 1) plants running around 50 per cent capacity utilization; 2) depreciation of rupee and 3) hike in the price of steel around the globe. Since most of the investment in assembling units has come from Japan the decision is likely to stale economic relationship between the two countries. It must be kept in mind that lately Japan has extended huge support in rehabilitation of flood affectees and also considering helping Pakistan in power sector. The experience shows whenever the government allowed import of second hand vehicles the decision didn't bode well for the indigenous auto industry. It is worth reminding that government that in 2007 both the assemblers and manufacturers had made huge investment for expanding capacities. However, by the time these capacities came on online, global recession started and plunged capacity utilization to 50 per cent. If the government is serious in bringing down prices of vehicles it must exercise other options rather than allowing import of secondhand vehicles. The vehicle offtake can be increased by providing auto financing facility for both the private owners as well as public transport operators. It is evident that decade old and highly depleted taxis, mini buses, buses and trucks are still plying on the roads. These vehicles not only provide highly uncomfortable ride but also cause fatal road accidents and spread pollution. The only reason for highly inadequate and depleted public transport is absence of auto financing facility. The last scheme was offered in nineties and since then the response from the financial institutions has been lackluster. Sector experts have been saying that introduction of an efficient and cost effective public transport system can help in containing traffic jams as well as burning billion of dollars in motor gasoline, diesel and CNG.

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.

STILL A GUIDING FORCE By Kisa Fatima

yed Ali Raza has come back as the Chairman of the National Bank of Pakistan. The employees have remarkably welcomed his return and given him very cheerful gesture ever seen in the history of National Bank of Pakistan. Virtues run in the blood he is the worthy son of illustrious Syed Hashim Raza, an ICS [ Indian Civil Services] Officer of pre-partition India, who opted to Pakistan and joined the civil service. Syed Hashim Raza held top bureaucratic positions in the Government of Pakistan and was known for his love of English literature and language besides poetry and the arts. Until his demise, he was active on the social scene. Syed Hashim Raza was a symbol of class, elegance and knowledge in Pakistan through the ages. His book (in English) "Hamari Manzil " (Our Destination) is considered to be a hallmark in narration of Indo-Pakistan history. As his son, Syed Ali Raza inherited the limelight right from the young age along with his siblings: however, Syed Ali Raza rose to a level that few corporate professionals in

Pakistan have ever witnessed. Syed Ali Raza was the longest serving President of the National Bank of Pakiatan, a highly politicized and sensitive institution. He succeeded in bringing reforms, good governance and profitability to the bank to the extent ever possible. Like most of public sector professionals in third world countries, Syed Ali Raza had to work his way through the maze of politics, influence and ridicule, he, however left an envious legacy behind. Amongst Syed Ali Raza's notable contributions at National Bank were: n Creating a professional senior executive team. n Implementing the basis for Balanced Business Score Card at the top management level. n Bringing profitability and focus on treasury and corporate banking. n Making the branches and retail banking leaner, efficient and more effective. n And above all, managing political pressures throughout his tenure with positivity, hope and sheer hard work. He did his Bachelor of Science in Economics from the London School of Economics, M.Sc. in

Administrative Sciences from Cass Business School

and holds a graduate degree from IBA Karachi, Pakistan. Prior to joining the National Bank of Pakistan, Syed Ali Raza worked for Bank of America for 26 years. His last position at Bank of America was Senior Vice President and Regional Head of Bank of America Operations for the Middle East, North Africa and Pakistan region. Syed Ali Raza is a cricket enthusiast. Recently, The Natio nal Bank of Pakistan management and the Board of Directors lauded the growthoriented performance of former bank President Syed Ali Raza during his tenure, at its 62nd annual general metting.

Syed Ali Raza was removed in January 2011 after the Supreme Court termed his appointment as President of the bank for the fifth consecutive term as unconstitutional. Qamar Hussain, Acting President of the National Bank of Pakistan on behalf of the bank's management and the Board of Directors appreciated the efforts and contribution made by the former President during his tenure of 10 years as President of the bank. n The shareholders approved dividend payout of 75 percent of Rs.7.50 cash dividend and 25 percent bonus shares at the AGM, which was earlier recommended in the Board of Directors' meeting. n The bank's financial controller highlighted the key successes that the bank has achieved during the year, despite serious challenges that the Pakistan's economy had to face due to the devastating floods, growing inflationary pressure and widening of fiscal deficit. n The shareholders have been informed that the National Bank of Pakistan stood as the first Pakistani bank to surpass Rs. One trillion benchmark with an impressive increase in

deposits of Rs.105 billion, or 14 percent. n Advances remained at the same level as 2009 and this is in line with the industry trend. The bank's capital and reserves increased from Rs119 billion to Rs128 billion, the highest among all Pakistani banks. n The bank posted a pre-tax profit of Rs24.4 billion, which is 15 percent higher from Rs21.3 billion in 2009. The increase is owing to higher core revenues and lower provision charges. Net interest income increased by 15 percent from last year, while fee income was up by eight percent on account of higher trade finance and general banking income. n The after-tax profit remained at the last year's level of Rs. 17.6 billion due to prior year's tax reversal of Rs4.1 billion in 2009. The earning per share for the year stood at Rs13.05, which is at the same level as of 2009, it was informed. It seems very much desirable that under the new phenomenon, as Syed Ali Raza being the Chairman of the National Bank of Pakistan, this largest financial institution of the country, shall be scaling the ever aspiring heights and material successes.

Concern grows as Pakistan builds low yield N-capability P

akistan's successful test of a missile able to carry short range nuclear weapons threatens to raise tensions in a region already nervous that the death of Osama bin Laden will create more instability. Tactical nuclear weapons, as these are called, are often seen as more dangerous than the traditional strategic weapons because their small size and vulnerability to misuse. Theft makes them a risk to global security. The biggest concern is that these low yield weapons are seen as less destructive and therefore more likely to be used than other classes of weapons, forcing most nuclear states to minimise the risk by cutting back stockpiles. Pakistani experts say the country has been forced to develop tactical nuclear weapons because of India's "Cold Start" plan under which Indian troops are primed to carry out a lightning strike inside Pakistan if another Mumbai-style attack is traced back to Pakistan-based militant groups. The military said it had tested last month the 60-km (36-mile) range NASR surface-to-surface missile which carries nuclear warheads to boost "deterrence at short ranges". Security experts in the United States, India and Pakistan said it meant the military planned to deploy these weapons in the battlefield, escalating the regional nuclear competition that has often seemed a replay of the U.S.-Soviet rivalry during the Cold War.

"Pakistan's development and testing of nuclear-capable short-range missiles is a destabilizing and potentially dangerous development," Daryl G. Kimball, the executive director of the Washington-based Arms Control Association, said. "It suggests that Pakistan would seriously contemplate use on the battlefield in the event of an incursion by Indian forces." India may yet respond by mounting nuclear warheads on its shorter range missiles to meet the Pakistani threat. It tested low yield nuclear devices in 1998 but there has been no word since then on whether it has added them to its arsenal. "Our capability in the area of low yield fission devices is well known," a former Indian defence scientist involved in the 1998 tests said, declining further comment. Pakistan responded to India's tests with explosions of its own. Both nations have since been expanding their arsenal, Pakistan even more and at a pace that Western experts say may, within a decade, make it the fourth largest weapons power, behind the United States, Russia and China. Pakistan says it has invested a lot of resources to ensure that its nuclear facilities, materials and weapons are secure. But Pakistan's support for militant groups including al Qaeda and the Taliban, who have found sanctuary along the Afghan border, has always

heightened concerns about its ever expanding armoury. These worries have deepened after al Qaeda leader bin Laden was found and killed in a garrison town. If there was one nuclear-armed country that kept him awake at night, it was Pakistan, senior White House coordinator on weapons of mass destruction and terrorism, Gary Samore said. "What I worry about is that, in the broader tensions and problems within Pakistani society and polity...even the best nuclear security measures might break down," Samore said in an interview published in the May 2011 issue of Arms Control Today. "You're dealing with a country that is under tremendous stress internally and externally, and that's what makes me worry." DISPERSED WEAPONS The problem with deploying tactical weapons to the battlefield is that command and control has to be dispersed down to military units on the ground. This increases the risk of things going wrong, either through miscalculation, an accident or the nightmare scenario of infiltration by militant groups, nuclear experts say. In either case, once Pakistan had fired off the missile, it would invite retaliation, the extent of which is unknown. Within Pakistan itself, security experts have questioned the logic of deploying tactical weapons, arguing that it exposed the country to bigger

risks rather than improving security. Ejaz Haider, a Pakistani security expert and columnist, said if Pakistan is going to unleash these weapons as the Indian military crosses the border, it would effectively be dropping them on its own soil. "We are, of course, not even considering how our own troops and population would be exposed to the fallout from a TNW (tactical nuclear weapon)," Haider said. But several experts also say that India's Cold Start doctrine, even if it is not fully operational, is seen as a real threat in Pakistan. Cold Start is aimed at mounting rapid military incursions into Pakistan to punish it, take limited amounts of territory, and then negotiate to compel Islamabad to rein in militant groups that act against India. It is not aimed at threatening the Pakistani state into resorting to its final, nuclear option, but it's a risky gamble. Pakistani army chief General Ashfaq Kayani has warned the Indian battle plan could lead to a "sudden spiral escalation". "India's military planners foolishly believe that they can engage in and win a limited conventional conflict without triggering a nuclear exchange even though the Pakistani army's strategy lies on nuclear weapons to offset India's overwhelming conventional superiority," the Arms Control Association's Kimball said.-Reuters

Singaporeâ&#x20AC;&#x2122;s Lee steps down, but not full break with past

or most Singaporeans, it's inconceivable that the government doesn't have Lee Kuan Yew at the helm or very near it. That break with the past came sooner than expected at the weekend with the announcement that Lee, 87, had relinquished the reverential title of "minister mentor" and stepped down from active politics after more than half a century at the very top. No one is predicting that Lee's exit will bring a shake-up of the tightly managed political system that helped turn Singapore from an economic backwater at independence in 1965 to a roaring success and moulded it into a world-class financial hub. Rather, there was a sense that the blunt-speaking Lee, with his impatience of dissent, was out of touch with the mood and expectations of the people of Singapore, and it was time to move on. That was underlined in this month's general election, which the ruling party won but with its most dismal performance since independence in 1965. Lee remains a member of parliament and his son is prime minister but he said on Saturday that he and Goh Chok Tong, another former prime minister, were stepping down from the cabinet to allow "a younger generation to carry Singapore forward in a more diffi-

cult and complex situation." "A younger generation, besides having a non-corrupt and meritocratic government and a high standard of living, wants to be more engaged in the decisions which affect them," the statement said. Lee has been the omnipotent leader of Singapore, as flag-bearer of independence, as prime minister of the republic for 25 years and later another 21 years in the cabinet as senior minister and then as minister mentor. But his attitude -- he once said: "We decide what is right. Never mind what the people think" -- is increasingly perceived as behind the times. "The old way of doing things was increasingly being seen as anachronistic, and being out of touch or even being seen as dictatorial," said Eugene Tan, assistant professor at the Singapore Management University. "And so I think it is a break from the past." Some of Lee's comments may have cost the PAP votes at the election, other commentators have said. He said during the campaign that if a constituency voted for the opposition the voters would have "five years to repent." Lee was unopposed in his constituency in the May 7 general election but the PAP returned to power with only about 60 percent of the popular vote, the lowest

since independence in 1965. His son, Prime Minister Lee Hsien Loong, said after the election: "Many (Singaporeans) wish for the government to adopt a different style and approach. It marks a distinct shift in our political landscape." He has not taken a decision on the resignations of Goh and his father, but should finalise the new cabinet early this week, media reports said. YET TO LEARN The Straits Times, the city's main newspaper which usually reflects government thinking, said in an analysis on Sunday that when Lee Kuan Yew took over, the nation "had yet to learn to read and write, far less to create jobs." "Close engagement of the mass citizenry was not only un-necessary but would have been a non-starter." Now, the newspaper said, "there is not only an implicit acknowledgement that their styles may no longer be in sync with the expectations of a younger generation, but that they may also no longer have an instinctive sense of the ground." Still, there is no question Lee's policies, which have brought surging economic growth and a place among the richest nations in the world, will continue to guide Singapore for decades, analysts said. -Reuters

Monday, May 16, 2011

Asian stocks log weekly losses as banks decline

European stocks drop for 2nd week as banks retreat

Weekly Review

Pak-US ties strain cast shadow at KSE

KSE-100 Index Opening Closing Change % Change Turnover (mn)

11879.96 11967.35 87.39 0.74 344.03

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

3188.81 3204.21 15.40 0.48 11.43

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

2676.71 2677.42 0.71 0.03 0.16

Nawaz Ali

Major Gainers

Symbol

Change

ULEVER 5200.00 NESTLE 3553.63 UPFL 1399.22 WYETH 855.72 BATA 436.14

176.06 137.53 48.55 40.83 22.13

Major Losers

Symbol RMPL QUET IDYM BTL TATM

Change

2705.45 62.29 291.24 60.00 34.43

-52.34 -7.04 -6.75 -6.54 -6.53

Top 5 Volume Leaders

Symbol

Close Vol (mn)

LOTPTA JSCL ANL BAFL NIB

15.36 7.13 5.88 10.56 1.68

42.54 32.85 27.61 19.84 12.11

Active Issues Plus Minus Unchanged

184 182 61 NEW YORK: Labor-Community Coalition activists march down Wall Street, during a protest against budget cuts and bank practices-Reuters

Sector Updates FERTILISER

Wall St weekly outlook

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

A storm gathers over equities mkts NEW YORK: Declines in oil and metals prices are being seen by an increasing number of fund managers and strategists as a signal to get out of riskier areas of the equity market. And that means avoiding things like Chinese IPOs and sticking to the boring stuff, like utilities. The growing concern is that stocks had priced in an overly optimistic economic path, and the recent breakdown in commodities and shift in equities to safer industries like health care suggest a reckoning in coming months. Ken Fisher, founder of Fisher Investments which manages about $38 billion in equities is among those concerned many investors have become overconfident. "I think expectations for the stock market are a bit on the high side," he said. The thesis that the economy may be slowing will be tested this week with the publication of two regional manufacturing reports from the New York and Philadelphia regions. They are a precursor to the bigger national ISM surveys published at the start of next month. However, some say there is room for the market to move higher before taking a turn for the worse. Bullish investors point to robust first quarter earnings. Just under three quarters of S&P 500 companies beat Wall Street's earnings estimates and investors have pointed to sturdy revenue growth. The S&P's index of retail stocks recently hit all-time highs. This week there will be earnings from some important retailers, including the nation's largest, Wal-Mart Stores Inc, home improvement companies Lowe's Companies and Home Depot, as well as teen clothing retailer Abercrombie & Fitch. Prominent strategists at Goldman Sachs and Credit Suisse foresee better results for stocks less tied to the economic cycle. Doug Cliggott, head of equity strategy at Credit Suisse, wrote: "Gone is the US equity

performance profile that suggested bold optimism on growth." Commodities have been at the forefront of the selling so far. Big rallies in hard assets such as gold, silver and oil ended in an ugly slump last week. Silver crashed 30 per cent in its worst fall since 1980. Oil, which was until recently worrying investors with its sharp ascent, fell around 15 per cent. There are two schools of thought as to why commodities are slumping. One is that the Federal Reserve's $600 billion program to buy Treasury debt has helped investors divert funds to commodities and equities, creating a bubble in those assets, which is now starting to burst. "Investors and market observers are divided over whether this is a big deal or not," wrote Cliggott, who wrote CS is "in the 'it's a big deal' camp." The other is that it is a sign of impending weakness in the economy. Copper, known as the "metal with a PhD" for its ability to act as a predictor for the economy given its wide-scale industrial applications, has hit a five-month low. The reduced appetite for speculative investments has shown in the outperformance of defensive stocks, whose fortunes are less tied to the rise and fall of the economy. The S&P 500's healthcare and utilities sectors were the performance leaders over the last month, rising 2.9 per cent and 2.6 per cent, respectively. That's despite a 1.5 per cent fall in year-over-year earnings growth in utilities in the first quarter, worst of the S&P's 10 sectors. Healthcare, long a go-nowhere sector, has had a whopping rally. The sector has gained for seven straight weeks, and is up 14.9 per cent this year, best of the 10 S&P sectors. Energy, down 7.8 per cent in the last seven weeks, is the worst performer in that time. Goldman Sachs says it has become "much less confident in

the near-term equity picture," exiting what it called its "top trade" in US banks, and doing the same with a trade that was long industrial shares relative to consumer staples. Cliggott sees a 10 per cent decline at the end of the Fed's so-called QE2 stimulus program -- which is what happened at the end of the first round of Fed buying -- as the "base case" scenario. The firm continues to recommend a short financial/long health care trade, as well as a long consumer staples/short consumer discretionary trade. EPFR Global, which tracks fund flows, said Friday that global equity funds experienced their first outflow since midMarch. Small and mid-cap stocks, which typically lead a strong market, have started to see their relative outperformance to large caps wane. Meanwhile, momentum indicators show the strength in S&P 500 is starting to decline as well. There are also signs of fatigue in the IPO market after a flood of Chinese IPOs and leveraged buyouts at the start of the year. Shares of Chinese dating website Jiayuan.com fell in their Nasdaq debut, while social networking site Renren, dubbed China's Facebook, reversed all its gains on its market debut and traded below its offer price. Goldman argues stocks have been driven further than economic fundamentals justify by heightened risk appetite. Sentiment indicators are elevated but off highs earlier in the year, while the CBOE Volatility Index, or Vix, is at pre-financial crisis levels, signs investors may be getting complacent. Peter Lee, a technical analyst at UBS, is expecting the S&P 500 to run to 1,400-1,450 in the summer before topping out. Fisher believes elevated expectations will mean the market struggles through the rest of the year. He expects a sideways movement at current levels.-Reuters

KARACHI: Cautious move by the investors saved the Karachi Stock Exchange for any major erosion in vales during last week. Initially, bullish sentiments prevailed due to foreign buying and improved economic situation. However, some selling was witnessed towards the end of the week as investors got wary over the ongoing tension on the political front. The benchmark KSE-100 was by 87 points to close at 11,967 points, KSE-30 index rose by 82 points to close at 11,615 points and KSE allshare index gained 52 points to close at 8,319 points. "Sentiments stayed positive at the beginning on expected rise in oil and gas production and renewed foreign interest in blue chip", said Ahsan Mehanti, Director Arif Habib Investments. Market witnessed positive activities during the first three days of the week on buying by the offshore investors and on speculation about resumption of oil exploration in Maramzai field which is expected to benefit listed E&P companies. Hopes of a positive outcome of the meeting between Government and International Monetary Fund (IMF) and also with other global lenders provided some ease. The index gained 156 points during the first three days of the week touching intra day high of 12,144 on Wednesday. However, following the fall in global stock markets over decline in commodity prices, market saw selling on Thursday eroding 74 points at the end of the day. Volumes also remained low due to volatile political situation in the country and hopes were pinned on the outcome of the meeting between govern-

ment and IMF. Sana Hanif, analyst at JS Global Capital said that while concerns over Pak-US relationship in the aftermath of Osama Bin Laden's death remained, market also lacked excitement as participants continued to monitor budget related news flows, particularly with regards to the IMF-suggested reforms. Lack of investors' interest was evident from low volumes. The all important talks with the IMF began during the week with focus primarily on budget related reforms such as imposition of Gross Asset Tax (GAT) and the RGST, especially in the backdrop of rising budget deficit to 4.5% in 9MFY11 (1.6% of GDP in 3Q). We believe, implementation of these reforms would be critical to continue this program which was suspended at the conclusion of the 4th review on May 14, 2010, she added, Finally, the week ended with some lackluster activities on Friday where the market closed with minor gains as investors stayed cautious ahead of the crucial in camera session of Parliament over Osama killing issue. Investor participation remained thin throughout the week as 344 million shares exchanged hands in the overall market which was just 5 million shares more as compared to a turnover of 339 million shares during the previous week. Foreigners were mainly on the buying side as according to NCCPL data, offshore investors did a net buying worth $5.6 million during the week. Active issues gave a neutral view as out of total 427 active issues; 184 advanced and 182 declined while 61 issues remained unchanged.

Gulf stocks mkt

Saudi ends lower, Egypt gains DUBAI: Egypt's benchmark share index closes up 1.1 per cent as real estate stocks including Palm Hills soar following a decision to release from detention a former executive of Egyptian Resort. Omar Ascar, head of trading at Cairo Capital Securities, says real estate stocks that fell the most this year due to legal challenges affecting their land banks are rebounding. Palm Hills and Egyptian Resorts -- which have fallen 75 per cent and 61 per cent this year respectively -- jump 9.6 per cent and 9 per cent respectively after Egypt's military prosecutor decided to free Ibrahim Kamel. Palm Hills, Egypt's secondbiggest listed developer, is the third most active stock in the bourse with over 15 million Egyptian pounds ($2.53 million) worth of its shares traded. Talaat Moustafa, Egypt's biggest listed land developer, closes up 6.8 per cent and is the bourse's second most traded stock. Egypt's third-biggest developer SODIC rises 3.3 per cent. Petrochemical and banking stocks in Saudi Arabia, two of the largest sectors on the bourse, book losses, weighing on the index after last week's gains. The petrochem index declines 0.6 per cent and the banking index eases 0.4 per cent. Market-mover Saudi Basic Industries Corp (SABIC) slips 0.7 per cent and Saudi Kayan sheds 1.4 per cent. Al-Rajhi Bank, the largest lender by market capitalisation, slips 0.3 per cent. "I would expect a few days of selling pressure, but not major movements," says a Riyadh-based fund manager. The index is closely correlated with the Standard & Poor measure, he says, which fell almost 2 per cent in May. While volumes hit a twomonth high on Wednesday, it failed to break out of its trading range. The Saudi index ends 0.3 per cent lower at 6,691 points, edging away from Wednesday's two-week high. UAE and Qatar's markets end lower as lack of local news flow leaves bourses to track losses in international markets.-Reuters

Dhiyan

TOO MANY IFS AND BUTS Mohammad Imran, AVP Arif Habib Limited I think market would continue to see range bound activities till the announcement of the federal budget. However, a positive outcome of the government and IMF meeting could ignite positive activities in the market. Investors are advised that in case of a major dip they can invest otherwise they should stay on the sidelines. Market would be mix today.

Muhammad Ahsan Rasheed, Director Research & Marketing AMJ Growth We expect some positive activities in the market moving forward. After breaching resistance levels of 12,220 the next target is 13,000. However, market would be volatile due to budget related news flow. The outcome of the meeting between government and IMF would also help market to set direction. Investors are suggested to invest by placing a stop loss at the support level of 11,800. They can take positions in quality banking, energy and telecommunication stocks. Market would witness mix performance today.

Monday, May 16, 2011

Market

KSE 100 Index

Symbols

Volume

344,032,877

Value

11,587,067,021

Trades

226,555

Advanced Decline Unchanged Total

184 182 61 427

Current High Low Change

All Share Index

11,967.35 12,143.75 11,879.96 h87.39

Current High Low Change

OIL AND GAS

Paid up Cap(mn)

Company Attock Petroleum Attock Refinery BYCO Petroleum

2010 Div BR (%) (%)

Volume 252671

387.98

321.00

300

853

4.07 124.86

126.25 123.90 124.11 -0.75

1300108 129.40

8.57

Low

Last 60 days High Low

Close Chg

379.90 373.50 373.70 -3.15

8.24

High

8.20

2011 Div BR (%) (%)

20B115.00

98.25

10.43

7.93

44407

123.30

98.50

- 23.43

8.26

0.02

1276656

0.80

Mari Gas Company

735

4.19 101.63

103.95 101.00 102.43

National Refinery

800

4.65 338.51

341.89 329.60 336.78 -1.73

971480

356.50

254.00

200

Oil & Gas Development 43009

9.97 147.08

152.70 144.60 147.38

0.30

7369440 168.95

128.21

- 30.00

Pak Petroleum

11950

7.48 206.52

209.00 204.00 204.54 -1.98

2132307 216.50

190.10

20B 50.00

2365

7.21 323.12

331.00 323.00 327.06

3.94

5135091 332.45

277.09

255

-100.00

84.25

0.89

340167

110.50

81.23

284.35 275.01 280.64

6.03

2505524 294.49

265.00

Pak Oilfields Pak Refinery Limited

350 47.07

P.S.OSPOT

1715

Shell Gas LPG

226

Shell Pakistan

685

83.36

4.01 274.61 -

24.00

7.44 209.55

88.59 25.00

83.50 23.25

- 80.00

23.52 -0.48

86751

30.45

22.69

213.00 208.00 209.33 -0.22

32853

217.90

186.83

120

CHEMICALS

Open 683.96 Turnover 58,663 P/E (x) 4.99 Company

High Low 1,849.30 1,801.84 Total cos Defaulter cos 36 6 P/BV (x) ROE (%) 3.05 35.00

Open

High

Low

1092 1321

6.59 7.81

70.48 25.94

71.94 27.00

69.42 25.41

Change % Change 33.96 1.88 Market cap 200-Day High 380,029.60 mn Div Yield (%) 200-Day Low 5.59 -

1.13 0.70

Volume

Last 60 days High Low

45018 13645

76.25 34.00

63.00 25.18

Open 1,127.50 Turnover 1,001,793 P/E (x) 3.73 Company

High Low 1,144.70 1,121.92 Total cos Defaulter cos 19 4 P/BV (x) ROE (%) 0.95 25.35

Close 1,132.35 Listed cap 6,768.53 mn Payout (%) 20.42

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

144

4.45

72.53

72.47

70.00

72.24 -0.29

6412

74.85

66.45

Atlas Honda Dewan Motors

100

120.30

2.45

1.50

0.01

16489

26.17

21.08

3.03 -0.67

211207

4.90

2.80

3.17

0.14

24248

4.60

3.11

9.33

0.20

15589

11.40

9.00

220.00 217.00 219.00

0.00

150

- 50.00

20B 10.00

General Tyre

598

4.31

22.60

23.93

22.35

22.61

Ghandhara Nissan

450

3.70

3.85

2.80

Ghani Automobile Ind

200

5.98

3.03

3.59

3.15

1428

9.13

9.69

9.01

Last 60 days High Low 24.90

18.51

BOC (Pak)

250

7.00

92.50

94.10

91.01

93.00 0.50

10337

98.35

82.00

FOOD PRODUCERS

Clariant Pak

341

4.90 161.80

165.00 158.50 160.47 -1.33

28304

206.79

140.00

135

25B

Performance of SR Food Producers Index

58.90

66.00

58.95

62.88 3.98

748369

294.00

56.10

2.26

2.59

2.12

2.35 0.09

52796

3.35

2.10

7.49

8.09

7.46

7.61 0.12

1350630

9.60

6.00

2.39

2.53

2.11

2.34 -0.05

2257104

3.10

2.11

Engro Corporation Ltd

3933

6420257 238.50

189.00

20B

Engro Polymer

6635

- 27.5R

Fatima Fertilizer

22000

8.79 193.82 -

10.93

12.67

200.00 193.99 196.81 2.99 11.85

10.90

11.33 0.40

1285371

13.95

12.80

12.41

12.45 -0.22

1252479

10.75

13.60

10.75

Fauji Fertilizer

8482

8.78 138.78

4889255 154.49

108.00

130

25B 45.00

Fauji Fert. Bin Qasim

9341

6.26

41.49

42.25

41.37

41.83 0.34

11585915 43.89

37.86

65.5

- 12.50

725

9.84

11.97

12.50

11.70

11.71 -0.26

385992

10.43

Ghani Gases Ltd ICI Pakistan

1388

Ittehad Chemical Lotte Pakistan Nimir Ind Chemical

8.50 152.91

143.00 139.00 142.69 3.91

157.60 152.05 153.01 0.10

14.49

662938

172.00

142.00

175

360

3.73

21.12

25.65

21.12

25.65 4.53

7100

29.85

20.11

15142

4.29

15.65

15.94

15.20

15.36 -0.29

42542887 17.36

14.05

1106 10.70

2.65

2.69

2.40

2.46 -0.19

1274479

2.10

2.00

2.29 0.18

194164

Shaffi Chemical

120 28.63

Sitara Chem Ind

214

2.11

2.40

2.53

98.08

104.25

Sitara Peroxide

551

5.48

17.40

19.12

98.10 102.00 3.92

13570

17.55

5678845

17.70 0.30

3.40 2.99

1.55

112.45

90.78

19.99

11.81

FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,020.87 Turnover 371,573 P/E (x) 5.53 Company

High Low 1,101.40 1,009.18 Total cos Defaulter cos 4 1 P/BV (x) ROE (%) 0.41 7.47

Close 1,076.99 Listed cap 1,186.83 mn Payout (%) 25.28

Change % Change 56.12 5.50 Market cap 200-Day High 2,971.33 mn Div Yield (%) 200-Day Low 4.57 -

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

707

15.27

16.99

14.60

16.29 1.02

324181

17.50

13.85

1.77

41.15

39.36

41.46 0.31

9882

44.49

411

6.90

37.04

39.48

37.41

39.00 1.96

37510

39.90

Century Paper Pak Paper Product Security Paper

Last 60 days High Low

2010 Div BR (%) (%) -

786

28484

283.99

205.51

Pak Suzuki XD

823 15.32

67.36

69.97

65.00

68.00

0.64

17064

76.90

60.00

Sazgar Engineering

150

23.80

24.75

22.90

23.00 -0.80

29171

25.50

20.50

35.17

2533.33B

34.00

7.56 219.00 1.13

Open 2,043.28 Turnover 1,210,252 P/E (x) Paid up Cap(mn)

Ansari Sugar

244

PE -

Open 1,033.33 Turnover 477,764 P/E (x) 3.30 Company

Paid up Cap(mn)

Open

Volume

29.75

2010 Div BR (%) (%)

565

1.87

27.56 0.06

71591

25.67

675

1.88

1.90

1.68

1.85 -0.03

75714

2.48

1.68

555 20.75

11.79

12.43

11.51

11.62 -0.17

8069

14.90

11.10

- 20.00

25B 15.00

51.91

52.25

48.52

50.30 -1.61

235359

54.50

45.81

20B 15.00

CONSTRUCTION AND MATERIALS Open 857.14 Turnover 15,508,309 P/E (x) 6.43 Company

Paid up Cap(mn)

High Low 882.16 852.70 Total cos Defaulter cos 37 6 P/BV (x) ROE (%) 0.46 7.10

Open

High

Low

6.65 -

2.55 51.25 2.35 14.25

2.69 54.00 2.65 15.20

2.51 51.25 1.92 14.01

Close 865.26 Listed cap 54,792.74 mn Payout (%) 19.04

Change % Change 8.11 0.95 Market cap 200-Day High 63,031.44 mn Div Yield (%) 200-Day Low 2.96 -

Close Chg

Volume

Last 60 days High Low

2.69 52.55 2.13 14.40

43807 28243 19134 21367

3.50 56.70 3.00 18.60

1828 866 858 182

Cherat Cement Dadabhoy Cement Dewan Cement

956 44.76 982 15.23 3891 -

9.52 2.00 1.54

10.00 2.05 1.58

9.40 1.76 1.41

9.40 -0.12 1.98 -0.02 1.43 -0.11

40449 43297 296070

11.90 2.24 2.19

8.00 1.50 1.41

DG Khan Cement Ltd Fauji CementSPOT

3651 29.89 6933 7.19

22.83 4.04

23.30 4.35

22.38 4.01

22.42 -0.41 4.17 0.13

8029854 2632891

26.44 4.82

21.20 3.97

20R -

20R 92R

Fecto Cement Flying Cement Ltd Frontier Ceramics

502 1760 77

5.82 -

6.40 1.32 2.60

7.40 1.49 3.80

6.12 1.30 2.02

6.75 0.35 1.34 0.02 2.55 -0.05

72750 206233 12036

8.90 1.84 3.80

6.10 1.30 0.71

Gharibwal Cement Haydery Const

4003 32

6.01 0.40

7.39 0.65

6.01 0.26

6.93 0.92 0.35 -0.05

12561 13595

13.50 0.90

5.00 0.26

- 100R 50 - 122R

6.31 2.88

6.90 3.09

6.25 2.80

6.35 0.04 2.93 0.05

114322 1094664

7.87 3.45

5.11 2.10

Lucky Cement Maple Leaf Cement

3234 5261

5.76 -

69.61 2.07

71.60 2.25

69.36 2.00

70.90 1.29 2.09 0.02

1544370 1025328

73.69 2.89

59.55 1.92

40 -

Pioneer Cement Safe Mix Concrete

2271 200

4.86 5.00

4.97 5.80

4.50 4.44

4.86 0.00 5.48 0.48

240510 21790

6.45 7.25

4.50 4.41

6.14

6.80

5.25

6.29 0.15

12113

8.50

5.13

- 100R

Shabbir Tiles

1288 13126 73.25

2.15 48.50 1.92 13.55

2011 Div BR (%) (%)

Al-Abbas Cement Attock Cement Balochistan Glass Ltd Berger Paints

Kohat Cement Lafarge Pakistan Cmt.

0.14 1.30 -0.22 0.15

2010 Div BR (%) (%)

361

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 959.02 Turnover 838,489 P/E (x) 2.74

High Low 975.87 954.11 Total cos Defaulter cos 13 2 P/BV (x) ROE (%) 1.20 43.91

Close 960.72 Listed cap 3,043.31 mn Payout (%) 15.55

Change % Change 1.69 0.18 Market cap 200-Day High 35,517.36 mn Div Yield (%) 200-Day Low 5.68 -

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Last 60 days High Low

Cherat Papersack ECOPACK Ltd

115 230

2.61 -

46.94 1.58

53.05 1.65

47.00 1.42

53.05 6.11 1.46 -0.12

457059 89608

62.25 2.75

Ghani Glass MACPAC Films

1067 389

5.44 2.74

53.89 13.22

56.07 15.21

52.90 13.25

53.48 -0.41 13.75 0.53

20847 198924

56.07 15.21

15076 12042

32.00 130.75

Company

Merit Pack Packages Ltd

47 12.78 27.97 844 17.90 108.81

29.50 27.00 28.49 0.52 109.90 107.10 107.39 -1.42

46.45 1.31

2010 Div BR (%) (%)

2011 Div BR (%) (%)

20 -

25B -

50R -

49.00 3.55

25 -

10B -

26.50 103.01

32.5

Company

Paid up Cap(mn)

Open

AL-Ghazi Tractor

215

3.86 228.73

Bolan Casting

104

4.70

Dewan Auto Engineering 214 Ghandhara Ind Millat Tractors

213 366

9.92

46.68 0.99 9.24

7.90 515.58

High

Low

Close Chg

231.00 222.00 223.30 -5.43 48.84 1.36 9.45

44.00 0.81 8.01

47.65 1.32

0.97 0.33

8.33 -0.91

525.00 513.60 520.10

4.52

Change % Change 6.90 0.44 Market cap 200-Day High 31,598.03 mn Div Yield (%) 200-Day Low 18.05 -

Last 60 days High Low

2010 Div BR (%) (%)

2011 Div BR (%) (%)

26643

239.00

199.05

400

6465

52.25

42.70

10B

39646 48416 111839

2.00 10.85 546.75

8.65

5.00

2011 Div BR (%) (%) -

0.00 0.29 0.34 -0.10 -0.03 -0.08 -0.67 0.01 1.39

9902 7763 16826 47815 97927 7776 5375 13128 20070

10.20 3.80 8.99 3.99 24.50 13.00 52.50 4.99 68.89

8.00 2.11 6.02 2.31 20.25 10.80 39.51 2.50 52.01

10 25 40 15 10 12

25B 20B -

Noon Pakistan Quice Food Sanghar Sugar Shahmurad Sugar

48 107 119 211

5.95 6.02 2.24 3.15

21.09 2.97 11.81 9.25

21.89 2.80 12.65 9.50

20.05 2.60 11.50 8.40

21.85 2.65 12.17 9.20

0.76 -0.32 0.36 -0.05

11985 18000 5963 12519

27.00 3.90 12.70 9.90

19.75 2.25 11.00 8.00

12 15 10

Shakarganj Mills Wazir Ali

695 80

0.43 -

6.00 7.48

6.75 7.50

5.35 7.00

6.00 7.00

0.00 -0.48

13657 7689

7.49 8.00

4.01 5.50

0.71 8.01 466.27

650

25B325.00

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

48.74

Total Assets (Rs in mn)

12,372.62

MA (10-day)

14.37

Total Equity (Rs in mn)

6,785.66

MA (100-day)

16.99

Revenue (Rs in mn)

2,170.95

MA (200-day)

16.15

Interest Expense

1st Support

15.20

Profit after Taxation

2nd Support

14.68

EPS 09 (Rs)

1st Resistance

16.12

Book value / share (Rs)

2nd Resistance

16.52

PE 10 E (x)

5.45

Pivot

15.60

PBV (x)

0.69

0.00 269.91 0.90 22.62

PAKRI closed up 2.06 at 15.69. Volume was 11 per cent below average and Bollinger Bands were 96 per cent wider than normal. The company's profit after taxation stood at Rs214.513 million which translates into an Earning Per Share of Rs0.72 for the 1st quarter of current calendar year (1QCY11). PAKRI is currently 2.8 per cent below its 200-day moving average and is displaying a downward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of PAKRI at a relatively equal pace. Trend forecasting oscillators are currently bearish on PAKRI.

KASB Bank Limited

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

58.09

Total Assets (Rs in mn)

MA (10-day)

1.35

Total Equity (Rs in mn)

MA (100-day)

1.68

Revenue (Rs in mn)

MA (200-day)

2.13

Interest Expense

1st Support

1.45

Loss after Taxation

2nd Support

1.39

EPS 09 (Rs)

1st Resistance

1.51

Book value / share (Rs)

2nd Resistance

1.51

PE 10 E (x)

Pivot

1.45

PBV (x)

59,223.06 4,958.87 5,061.63 5,490.40 (4,227.75) (4.446) 5.22 0.28

KASBB closed up 0.10 at 1.45. Volume was 98 per cent below average (consolidating) and Bollinger Bands were 53 per cent narrower than normal. The company's loss after taxation stood at Rs549.366 million which translates into a Loss Per Share of Rs0.58 for the 1st quarter of current calendar year (1QCY11). KASBB is currently 31.9 per cent below its 200-day moving average and is displaying an upward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into KASBB (mildly bullish). Trend forecasting oscillators are currently bullish on KASBB.

Sitara Peroxide Limited

HOUSEHOLD GOODS Performance of SR Household Goods Index Open 744.23 Turnover 915,993 P/E (x) 1.59

High Low 787.51 721.76 Total cos Defaulter cos 15 7 P/BV (x) ROE (%) 0.17 10.64

Close 741.66 Listed cap 3,763.71 mn Payout (%) 6.27

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

106 1219 231

1.61

4.87 7.81 12.50

4.50 8.70 12.85

4.00 7.70 12.00

4.01 -0.86 8.02 0.21 12.18 -0.32

5409 794394 113568

Hussain Industries Pak Elektron Tariq Glass Ind

Change % Change -2.58 -0.35 Market cap 200-Day High 4,089.36 mn Div Yield (%) 200-Day Low 3.93 -

Last 60 days High Low

2010 Div BR (%) (%)

7.00 14.50 18.99

17.5

4.00 7.26 12.00

10B -

2011 Div BR (%) (%) - 200R

PERSONAL GOODS Performance of SR Personal Goods Index Open 957.01 Turnover 40,213,025 P/E (x) 6.15 Paid up Cap(mn)

(Colony) Thal Amtex Limited Artistic Denim Ashfaq Textile Azam Textile Azgard Nine Babri Cotton Bannu Woolen XD Chakwal Spinning Chenab Limited Colony Mills Ltd Crescent Jute Crescent Textile D S Ind Ltd Data Textile Dawood Lawrencepur XB Dewan Mushtaq Textile Ellcot Spinning Gadoon Textile XD Gul Ahmed Textile Gulistan Spinning Gulshan Spinning H M Ismail Hajra Textile Hira Textile Mills Ltd. Ibrahim Fibres Ideal Spinning Idrees Textile Kohinoor Ind Kohinoor Mills Kohinoor Textile Leather Up Masood Textile Mohd Farooq Mukhtar Textile Nishat (Chunian) Nishat Mills Olympia Textile Pak Synthetic Premium Textile Ravi Textile Rupali Poly Saif Textile Sally Textile Samin Textile Sana Ind Service Ind XD Shahtaj Textile Suraj Cotton Taj Textile Tata Textile Thal Ltd Treet Corp ZahidJee Textile

56 2594 840 70 133 4493 37 76 400 1150 2442 238 492 600 99 591 34 110 234 635 146 222 120 138 716 3105 99 180 303 509 2455 60 600 189 145 1620 3516 108 560 62 250 341 264 88 267 55 120 97 180 334 173 307 418 341

Open

1.51 1.98 7.14 21.00 1.74 5.50 0.46 2.50 5.57 0.24 15.26 0.73 16.33 0.60 1.45 2.24 1.95 1.99 0.68 3.61 14.99 1.09 0.22 - 36.51 0.20 3.80 0.62 26.00 0.70 78.50 3.16 50.05 0.37 6.56 0.42 10.50 1.45 0.45 0.85 4.25 3.28 47.00 0.52 7.56 1.69 4.48 1.19 1.97 5.49 4.77 7.56 3.24 1.63 17.50 0.84 0.40 3.78 25.92 5.16 59.03 0.51 2.28 18.28 0.66 29.99 0.89 3.01 38.41 0.28 8.41 0.27 7.30 2.45 4.76 2.87 40.19 3.00 179.64 1.32 24.80 0.73 38.21 0.11 0.47 40.96 - 99.96 6.46 49.19 0.70 7.20

High

High Low 970.34 949.02 Total cos Defaulter cos 211 73 P/BV (x) ROE (%) 0.53 8.64 Low

Close Chg

2.84 1.55 2.27 0.76 2.34 1.90 2.01 0.03 22.62 20.65 22.56 1.56 5.43 4.50 4.55 -0.95 2.60 2.25 2.55 0.05 6.20 5.20 5.88 0.31 16.00 14.30 14.49 -0.77 18.43 16.35 17.51 1.18 1.50 1.08 1.50 0.05 2.36 2.00 2.10 -0.14 1.98 1.70 1.87 -0.12 0.97 0.56 0.61 -0.07 14.26 12.65 13.42 -1.57 1.25 1.02 1.05 -0.04 0.60 0.22 0.60 0.38 38.95 35.00 36.45 -0.06 4.80 3.51 3.80 0.00 26.99 25.51 26.00 0.00 79.75 72.00 72.02 -6.48 50.79 50.01 50.01 -0.04 7.00 6.50 7.00 0.44 10.59 10.00 10.20 -0.30 1.78 1.45 1.50 0.05 0.99 0.40 0.62 0.17 4.45 4.20 4.24 -0.01 48.50 44.55 45.99 -1.01 8.24 6.56 6.98 -0.58 5.32 3.85 4.40 -0.08 1.25 1.05 1.18 -0.01 2.25 0.71 1.51 -0.46 5.00 4.43 4.78 0.01 3.00 2.24 2.72 -0.52 17.75 16.91 17.60 0.10 0.84 0.52 0.75 -0.09 0.40 0.23 0.27 -0.13 26.29 24.41 24.56 -1.36 60.00 57.90 58.13 -0.90 0.75 0.60 0.60 0.09 19.28 17.26 18.29 0.01 29.99 27.16 27.17 -2.82 1.07 0.81 1.00 0.11 39.90 38.25 39.89 1.48 9.25 7.70 8.10 -0.31 7.39 6.90 6.98 -0.32 5.50 4.50 5.02 0.26 40.19 36.50 37.87 -2.32 186.50 175.00 175.67 -3.97 24.50 23.55 23.65 -1.15 40.12 37.21 38.10 -0.11 1.01 0.11 0.50 0.39 39.20 34.42 34.43 -6.53 102.00 99.05 99.88 -0.08 51.90 49.00 51.64 2.45 7.98 6.40 7.98 0.78

Close 958.00 Listed cap 47,070.70 mn Payout (%) 16.68

Volume

Change % Change 0.99 0.10 Market cap 200-Day High 125,050.44 mn Div Yield (%) 200-Day Low 2.71 -

Last 60 days High Low

36447 2.84 1530720 3.90 36225 23.13 50500 5.98 22084 2.98 27607995 10.78 20520 18.41 117954 23.27 12005 2.20 14388 3.40 9029 2.95 27773 1.43 8773 17.88 346243 1.85 6508 1.10 80255 49.05 14504 5.50 23293 28.74 50353 102.24 7897 53.65 21789 9.23 47906 11.68 38234 2.10 22224 1.50 296020 5.20 82509 50.74 7905 10.90 14040 6.00 200362 1.90 46556 2.90 198314 5.58 6235 3.50 6974 18.89 24016 1.69 10760 0.77 2347979 29.50 6010408 66.75 17002 1.98 108322 21.21 8612 33.07 118318 1.74 12238 44.40 17731 11.50 36565 9.35 6590 7.40 7562 43.00 14488 220.00 10500 26.29 7340 42.00 60000 1.01 23479 44.10 69875 119.90 207906 56.50 9400 7.98

0.50 1.81 18.55 4.41 2.00 4.40 10.90 13.00 0.77 1.65 1.50 0.25 12.65 0.95 0.08 35.00 3.02 20.92 70.01 30.40 5.52 7.00 0.42 0.01 3.50 43.02 6.56 3.05 1.05 0.67 3.60 1.21 16.70 0.51 0.13 22.30 57.20 0.40 12.50 27.16 0.40 37.56 5.38 3.64 4.10 36.50 154.00 19.15 35.77 0.11 34.42 97.00 44.10 2.27

2010 Div BR (%) (%) - 30B 20 7.5 - 15B 20 5 15 5 15B 35 70 12.5 10 10 20B 10 20 10 15 100R 15 25 45R 50 40 10 - 100R 60 75 45 50 25 80 20B 50 900B -

2011 Div BR (%) (%) -

PHARMA AND BIO TECH Performance of SR Pharma and Bio Tech Index

Close 1,558.29 Listed cap 1,336.62 mn Payout (%) 131.49

Volume

878000

2010 Div BR (%) (%)

9.50 2.79 7.60 2.56 23.60 12.17 40.99 3.01 65.49

Performance of SR Industrial Engineering Index High Low 1,572.73 1,540.76 Total cos Defaulter cos 11 1 P/BV (x) ROE (%) 2.77 38.02

0.47

Last 60 days High Low

9.00 2.50 7.40 2.31 23.40 12.14 39.51 3.00 64.00

INDUSTRIAL ENGINEERING Open 1,551.39 Turnover 243,136 P/E (x) 7.29

8.00

Volume

9.70 2.99 8.99 2.99 23.75 13.00 43.40 3.21 68.89

Company

Performance of SR Construction and Materials Index

7.50

Close Chg

9.50 2.50 7.26 2.66 23.63 12.25 41.66 3.00 64.10

2011 Div BR (%) (%)

Huffaz Pipe XD

9.00

27.27

Close Chg

Last 60 days High Low

8.50

Low

Change % Change 56.21 2.75 Market cap 200-Day High 296,775.60 mn Div Yield (%) 200-Day Low 0.65 -

3.71 6.98 0.77 9.37 4.91 2.56 11.31

Company

Change % Change -13.14 -1.27 Market cap 200-Day High 9,449.65 mn Div Yield (%) 200-Day Low 9.37 -

Dost Steels Ltd

1199

28.00

Low

Close 1,020.19 Listed cap 3,596.11 mn Payout (%) 30.91

Crescent Steel

International Ind

27.50

High

High Low 1,044.19 994.71 Total cos Defaulter cos 7 1 P/BV (x) ROE (%) 1.09 33.10

7.53

High

Close 2,099.49 Listed cap 11,335.33 mn Payout (%) 30.57

287 990 214 365 750 200 84 141 414

INDUSTRIAL METALS AND MINING Performance of SR Industrial Metals and Mining Index

Open

High Low 2,163.36 2,012.66 Total cos Defaulter cos 61 16 P/BV (x) ROE (%) 14.31 30.30

Chashma Sugar Colony Sugar Mills Crescent Sugar Dewan Sugar Habib Sugar Habib-ADM Ltd Mirpurkhas Sugar Mirza Sugar National Foods

2011 Div BR (%) (%)

Indus Motors

Company

180.00

153.93

571114

Volume

15B

216.30

44128

1.66

10218

35745

0.01

1.61

19.94 0.85

3.65

20B

15B 65.00

1.00 5.60

1.90

Close Chg

3663

2011 Div BR (%) (%)

212.30 210.00 211.00

1.65

Low

1020 11.19

2010 Div BR (%) (%)

147.90 141.75 146.61

18.51

1996

5.60 210.00

High

4813

9.15 141.01

20.00

Dewan Salman

2011 Div BR (%) (%)

101

19.09

Descon Oxychem Ltd.

626 1087

Honda Atlas Cars

Last 60 days High Low

Open

Descon Chemical

40 15

Change % Change 4.85 0.43 Market cap 200-Day High 42,082.03 mn Div Yield (%) 200-Day Low 5.47 -

Dawood Hercules

2010 Div BR (%) (%)

Performance of SR Automobile and Parts Index

50 300B

2011 Div BR (%) (%)

71.61 26.64

Change % Change 11.96 1.75 Market cap 200-Day High 11,570.38 mn Div Yield (%) 200-Day Low 2.22 -

3924

Agritech Limited

2010 Div BR (%) (%)

Close Chg

Close 695.93 Listed cap 3,242.17 mn Payout (%) 11.08

Paid up Cap(mn)

Company

Pakistan Reinsurance Co Ltd

AUTOMOBILE AND PARTS

Atlas Battery

Close 1,836.53 Listed cap 52,251.88 mn Payout (%) 48.81

High Low 699.57 675.74 Total cos Defaulter cos 4 2 P/BV (x) ROE (%) 1.27 25.53

Paid up Cap(mn)

Pak Int Cont.Terminal PNSC

Agriautos Ind

Performance of SR Chemicals Index Open 1,802.58 Turnover 79,366,564 P/E (x) 8.73

11,615.03 11,760.33 11,532.51 h82.52

Performance of SR Industrial Transportation Index

Close Change % Change 1,476.72 3.17 0.22 Listed cap Market cap 200-Day High 65,194.15 mn 1,095,723.83 mn Payout (%) Div Yield (%) 200-Day Low 55.94 5.44 -

6.75 376.85 -

Open

High Low 1,512.09 1,461.70 Total cos Defaulter cos 12 P/BV (x) ROE (%) 3.35 32.54

691 3921

Current High Low Change

8,319.80 8,437.32 8,267.31 h52.49

Alert ! Unusual Movements

INDUSTRIAL TRANSPORTATION

Performance of SR Oil and Gas Index Open 1,473.55 Turnover 20,170,799 P/E (x) 10.29

KSE 30 Index

Open 958.67 Turnover 1,176,143 P/E (x) 6.15

High Low 993.07 948.90 Total cos Defaulter cos 9 P/BV (x) ROE (%) 1.37 22.31

Close 974.01 Listed cap 3,904.20 mn Payout (%) 44.54

Change % Change 15.34 1.60 Market cap 200-Day High 31,698.58 mn Div Yield (%) 200-Day Low 7.24 -

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Last 60 days High Low

Abbott (Lab) XD

979

5.58

91.99

92.75

90.65

91.00 -0.99

15792

97.00

Ferozsons (Lab)

250

Company

7.51

96.65

93.74

89.41

90.70 -5.95

10575

99.49

78.59 85.00

2010 Div BR (%) (%) 50 -

2011 Div BR (%) (%) -

20B 12.50

GlaxoSmithKlineXDXB1963

10.99

72.28

79.90

72.80

76.94

4.66

1068211

90.00

68.00

15B

Highnoon (Lab)XDXB 182

5.97

25.30

25.80

25.25

25.79

0.49

9294

33.50

24.50

10B

IBL HealthCare Ltd

200

4.00

10.95

10.99

9.70

9.75 -1.20

41740

12.80

8.20

Searle Pak

306

5.83

60.00

61.00

59.00

59.75 -0.25

27357

66.15

58.05

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

48.56

Total Assets (Rs in mn)

MA (10-day)

17.96

Total Equity (Rs in mn)

MA (100-day)

15.32

Revenue (Rs in mn)

2,747.78 219.69 727.02

MA (200-day)

12.82

Interest Expense

1st Support

17.45

Loss after Taxation

2nd Support

17.25

EPS 10 (Rs)

1st Resistance

18.00

Book value / share (Rs)

243.27 (179.15) (3.251) 3.99

2nd Resistance

18.35

PE 11 E (x)

5.49

Pivot

17.80

PBV (x)

4.44

SPL closed up 0.30 at 17.70. Volume was 66 per cent below average (consolidating) and Bollinger Bands were 18 per cent narrower than normal. The company's profit after taxation stood at Rs134.241 million which translates into an Earning Per Share of Rs2.42 for the nine months of fiscal year (9MFY11). SPL is currently 35.5 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 SPL (mildly bullish). Trend forecasting oscillators are currently bearish on SPL.

SilkBank Limited

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

58.37

Total Assets (Rs in mn)

MA (10-day)

2.66

Total Equity (Rs in mn)

MA (100-day)

2.42

Revenue (Rs in mn)

68,664.34 5,913.32

MA (200-day)

2.58

Interest Expense

5,855.52

1st Support

2.56

Loss after Taxation

2nd Support

2.53

EPS 09 (Rs)

1st Resistance

2.68

Book value / share (Rs)

2nd Resistance

2.77

PE 10 E (x)

16.63

Pivot

2.65

PBV (x)

12.16

196.91

(2,902.91) (3.224) 0.22

SILK closed down -0.14 at 2.66. Volume was 65 per cent below average (consolidating) and Bollinger Bands were 122 per cent wider than normal. The company's profit after taxation stood at Rs101.991 million which translates into an Earning Per Share of Rs0.04 for the 1st quarter of current calendar year (1QCY11). SILK is currently 3.1 per cent above its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into SILK (bullish). Trend forecasting oscillators are currently bullish on SILK.

BOOK CLOSURES Company

From

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 Haydari Construction # Nimir Ind Chemicals Habib Adm # MCB Bank Ittehad Chemicals # (TFC) Engro Fertiliser Crescent Steel (Un-Consolidated) Lotte Pakistan Pta # PTCL OGDC

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 26-May 27-May 29-May 02-Jun 04-Jun 04-Jun 08-Jun 10-Jun 11-Jun 14-Jun

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 02-Jun 02-Jun 04-Jun 09-Jun 10-Jun 17-Jun 14-Jun 16-Jun 20-Jun 21-Jun

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

INDICATIONS # Extraordinary General Meeting

Spot AGM/Date 06-May 10-May 12-May 12-May 12-May 13-May 16-May 16-May 25-May 31-May -

20-May 24-May 31-May 31-May 30-May 02-Jun 04-Jun 10-Jun 16-Jun -

Monday, May 16, 2011

FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 975.38 Turnover 7,535,434 P/E (x) 5.37 Paid up Cap(mn)

Company

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

High Low 989.54 963.84 Total cos Defaulter cos 5 P/BV (x) ROE (%) 0.69 12.84

Open

High

Low

Close Chg

78 29.03 37740 13.85 3000 2.63 8606 6175 -

33.07 16.98 1.48 2.05 2.71

34.70 17.17 1.60 2.17 2.84

29.01 16.82 1.46 1.96 2.41

30.19 16.90 1.55 2.00 2.55

-2.88 -0.08 0.07 -0.05 -0.16

Close 970.28 Listed cap 50,077.79 mn Payout (%) 62.56

Volume 33452 4590993 890023 2020966 359318

Change % Change -5.10 -0.52 Market cap 200-Day High 67,778.02 mn Div Yield (%) 200-Day Low 11.64 -

Last 60 days High Low

2010 Div BR (%) (%)

75.45 19.18 2.35 2.89 3.50

80 17.5 1 -

29.01 16.05 1.40 1.94 2.41

2011 Div BR (%) (%)

- 15.00 -

Ask Gen Insurance XB

280

3.57

9.48

10.43

9.35

9.58 0.10

16052

Atlas Insurance

443

3.37

27.20

27.50

26.95

27.10 -0.10

28779

42.90

26.50

70.00 8.35 31.53 11.13

72.00 8.47 35.60 11.85

67.50 8.00 31.98 11.01

68.00 8.40 33.64 11.64

-2.00 0.05 2.11 0.51

21346 22481 142956 19445

115.90 10.85 39.91 16.05

65.00 8.00 29.01 11.00

IGI Insurance XD

Paid up Cap(mn)

Company

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

3426 198 11572 1560 7932 1695 126 8803 3673 3541 191 1367 150

Open

High

Low

7.41 4.84 2.33 5.55 2.95 2.42 6.23 -

9.00 0.68 36.99 1.04 2.41 16.88 3.05 42.61 16.55 16.88 21.22 1.29 0.80

9.00 0.70 37.30 1.70 2.45 16.98 3.40 44.00 16.83 17.20 23.20 1.54 1.25

8.00 0.52 36.75 1.01 2.32 15.76 2.85 42.53 16.12 16.56 21.25 1.22 0.80

Close 1,337.92 Listed cap 95,369.29 mn Payout (%) 104.13

Volume

Last 60 days High Low

8.50 0.65 36.89 1.11 2.36 16.01 3.00 43.27 16.40 16.96 22.50 1.40 1.01

7493 111216 3679168 3942242 1011180 16426 20930 548934 5549748 3408872 1461892 847746 63167

10.89 0.85 40.75 1.70 2.90 18.88 4.95 44.99 17.00 17.75 23.20 2.00 1.37

-0.50 -0.03 -0.10 0.07 -0.05 -0.87 -0.05 0.66 -0.15 0.08 1.28 0.11 0.21

8.00 0.49 35.90 0.97 2.31 15.41 2.11 40.26 14.05 14.85 15.35 1.13 0.31

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

25.00 10.00 30.00 10.00 -

Paid up Cap(mn)

Company Sui North Gas Sui South Gas

Close 1,305.86 Listed cap 12,202.80 mn Payout (%) 66.79

Open

High

Low

Close Chg

Volume

Last 60 days High Low

18.00 21.38

19.13 22.60

17.86 20.90

18.88 0.88 22.35 0.97

352540 582603

25.45 26.15

17.64 20.52

20 15

73.10

70.65

70.89 -1.66

115244

103.00

65.10

55B 10.00

58.16 13.63

56.80 16.39

51.16 13.65

54.68 -3.48 15.69 2.06

27017 6858075

74.90 20.80

51.16 12.43

20 30

25B -

PICIC Ins Ltd Premier Insurance XD Reliance Insurance

350 303 284

7.48 3.68 4.18

8.08 8.30 6.48

9.84 8.90 7.45

7.08 8.00 6.40

8.98 0.90 8.24 -0.06 6.85 0.37

9697 44743 13184

13.00 13.27 8.25

7.08 8.00 5.76

25 - 12.5B

Silver Star Insurance XB 291

0.95

5.11

6.40

4.90

5.45 0.34

23938

7.51

4.56

Paid up Cap(mn)

Company

Open

Allied Bank Ltd. XDXB 8603 6.08 61.56 Askari Bank XB 7070 5.26 11.32 Bank Alfalah 13492 5.56 10.29 Bank AL-Habib 8786 6.16 29.70 Bank Of Khyber 5004 2.55 5.97 Bank Of Punjab 5288 5.10 BankIslami Pak 5280 10.57 3.80 Faysal Bank 7327 7.35 9.59 Habib Bank Ltd 11021 7.57 121.04 Habib Metropolitan Bank XB 10478 4.95 18.17 JS Bank Ltd 8150 45.20 2.44 KASB Bank Ltd 9509 1.35 MCB Bank Ltd 8362 8.27 202.72 Meezan Bank XB 8030 6.06 18.21 Mybank Ltd 5304 2.26 National Bank 16818 4.08 52.29 Network Mic Bank 300 2.45 NIB Bank XR 40437 1.82 Samba Bank 14335 24.38 1.97 Silkbank Ltd 26716 16.63 2.80 Soneri Bank 6023 3.00 6.24 Stand Chart Bank 38716 6.61 8.45 Summit Bank Ltd 7251 3.00 United Bank Ltd 12242 7.51 62.56

High

Low

Close Chg

63.45 61.50 61.69 0.13 11.69 11.00 11.57 0.25 11.02 9.98 10.56 0.27 29.89 28.75 29.06 -0.64 6.20 5.10 5.71 -0.26 5.45 5.05 5.10 0.00 4.00 3.57 3.91 0.11 9.99 9.36 9.70 0.11 123.90 121.00 121.12 0.08 18.38 17.12 17.21 -0.96 2.50 2.06 2.26 -0.18 1.48 1.28 1.45 0.10 207.20 202.51 204.80 2.08 18.19 17.37 17.70 -0.51 2.60 2.10 2.19 -0.07 53.44 51.38 51.91 -0.38 2.60 2.10 2.50 0.05 1.95 1.61 1.68 -0.14 2.05 1.85 1.95 -0.02 2.90 2.60 2.66 -0.14 6.39 5.90 6.00 -0.24 8.70 8.10 8.20 -0.25 3.07 2.72 2.86 -0.14 64.97 62.20 63.95 1.39

Paid up Cap(mn)

70.00 16.38 11.20 37.38 6.25 7.97 4.18 14.44 131.00 26.50 3.16 1.70 230.80 19.70 2.99 81.78 3.49 2.94 2.20 2.99 6.99 9.90 3.58 67.25

57.00 10.90 8.75 26.95 3.30 4.51 3.06 9.00 104.16 17.12 2.06 1.16 192.20 16.26 1.70 49.57 0.76 1.61 1.50 2.02 5.00 6.28 2.36 56.70

2010 Div BR (%) (%)

High

Low

Close Chg

Volume

Last 60 days High Low

1.80 51.66

1.80 59.79

1.65 52.01

1.70 -0.10 57.85 6.19

5061 129567

2.60 64.50

1.50 50.70

10R -

New Jub Life Insurance

627 13.97

51.50

52.00

48.00

51.97 0.47

23154

54.00

40.85

AMZ Ventures

Paid up Cap(mn)

Company

1237

High Low 752.55 705.17 Total cos Defaulter cos 34 22 P/BV (x) ROE (%) 0.55 5.20

Close 730.41 Listed cap 11,111.34 mn Payout (%) 79.54

225

Open

High

Low

Close Chg

Volume

Last 60 days High Low

65.69

69.40

65.91

66.89 1.20

1176360

84.49

62.00

2010 Div BR (%) (%) 25

2011 Div BR (%) (%)

Open

0.96

360 5.61 450 15.38 2.89 -

650

0.50

High Low 299.30 260.71 Total cos Defaulter cos 41 6 P/BV (x) ROE (%) 0.18 0.91

High

Low

21.75 13.65

22.00 0.23 14.61 1.45

33305 330243

24.97 24.25

20.10 12.01

20B 20B

21.50 1.15

21.57 -0.21 1.38 0.02

4629678 57766

26.14 2.57

18.75 1.06

30 -

4.99 -0.01

0.93

2.30

2121 9.05 600 21.62

1.70 7.50

1.90 9.29

1.63 7.49

1.72 0.02 8.00 0.50

300969 141072

2.49 9.29

1.61 5.15

11.5

0.40 2.85

0.59 3.10

0.25 2.60

0.38 -0.02 2.80 -0.05

132634 216228

1.20 3.67

0.25 2.45

10B

626

0.68

1.44

1.60

1.35

7633 508 500 5.76 1000 42.42 1000 821 3.33 775 5.57 452 363 -

6.12 2.63 18.45 5.18 3.50 5.49 1.59 0.60 1.90

7.44 3.40 20.89 5.44 3.87 5.80 1.87 0.74 1.99

6.11 2.50 17.50 4.53 3.21 5.27 1.50 0.60 1.50

1.01 0.07 1.58 -0.09 0.18 0.01 -0.03 0.14 0.07

163276 32848272 5525218 52810 434810 10512 10640 900859 5198 10262

2849 3166

1.51 0.07

6.00

IGI Investment Bank Invest and Fin Sec

7.13 2.70 20.03 5.09 3.68 5.50 1.56 0.74 1.97

652542

0.34

2011 Div BR (%) (%)

23.25 15.90

4.27

104336

2010 Div BR (%) (%)

22.66 1.46 6.00

0.46 -0.04

Last 60 days High Low

Volume

21.77 13.16

5.00

0.41

Change % Change 22.18 8.40 Market cap 200-Day High 13,813.26 mn Div Yield (%) 200-Day Low 4.96 -

21.78 1.36

0.58

Close Chg

Close 286.38 Listed cap 30,336.44 mn Payout (%) 99.56

2.00

1.24

10.78 3.98 27.00 6.50 4.97 6.44 2.49 0.98 2.55

4.82 2.31 16.42 4.53 3.10 5.00 1.21 0.47 1.50

10 50 -

EQUITY INVESTMENT INSTRUMENTS Performance of SR Equity Investment Instruments Index

20R -

Open 1,486.00 Turnover 3,378,434 P/E (x) 20.52 Paid up Cap(mn)

Company

1st Fid Leasing AL-Meezan Mutual F. AL-Noor Modaraba Atlas Fund of Funds B R R Guardian Mod. Crescent St Modaraba Equity Modaraba First Dawood Mutual F. Golden Arrow H B L Modaraba Habib Modaraba JS Growth Fund JS Value Fund KASB Modaraba Meezan Balanced Fund Pak Oman Advantage PICIC Energy Fund PICIC Growth Fund PICIC Inv Fund Prud Modaraba 1st Punjab Modaraba Stand Chart Modaraba UNICAP Modaraba

2011 Div BR (%) (%)

2010 Div BR (%) (%)

Invest Bank Ist Cap Securities Jah Siddiq Co JOV and CO JS Global Cap JS Investment KASB Securities Orix Leasing Pervez Ahmed Sec Saudi Pak Leasing Security Leasing

Change % Change 21.14 2.98 Market cap 200-Day High 45,257.74 mn Div Yield (%) 200-Day Low 7.54 -

7.18

3750 250

First Credit & Invest Bank Ltd

NON LIFE INSURANCE

Adamjee Insurance XD

Paid up Cap(mn)

Arif Habib Investments Arif Habib Limited

Performance of SR Non Life Insurance Index Open 709.27 Turnover 8,525,891 P/E (x) 10.55

Change % Change 54.23 7.16 Market cap 200-Day High 9,076.47 mn Div Yield (%) 200-Day Low 4.57 -

Open

Arif Habib Corp Dawood Equities

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 -

Close 811.87 Listed cap 2,290.72 mn Payout (%) 355.53

Open 264.20 Turnover 41,293,986 P/E (x) 11.26

Change % Change 3.41 0.30 Market cap 200-Day High 677,248.77 mn Div Yield (%) 200-Day Low 5.49 -

Last 60 days High Low

Volume

High Low 821.24 748.13 Total cos Defaulter cos 4 P/BV (x) ROE (%) 2.99 3.85

500 10.63 850 8.13

Ist Dawood Bank

94127 1674400 19835377 2118740 207938 6885849 390232 268651 1002447 76735 490641 6680896 1068458 94089 55704 7654368 79520 12105387 272255 5579942 839976 33875 954635 1212407

Symbols SSML SSOM ALICO WAHN GRAYS ADOS FECS FNEL SALT JKSM TRIBL FUDLM GATI NAGC REWM NONS MWMP SKFL BTL PAKL HWQS SHEZ ALNRS SAPL PAKMI DCM ARUJ JDMT JDWS TSMF KSTM UNIC BATA PASM TSBL YOUW POML MSCL AATM KSBP TRSM DFSM MDTL KOSM DINT PKGI HINO MRNS BROT MFFL EMCO KOHS UVIC BAWS NESTLE SCLL TSML SING DADX REST SUTM MUCL PRWM PNGRS MEHT PECO SFL ZTL DIIL JOPP TREI ICCT SAPT APOT SARD ISTM BWHL SRSM FZTM DYNO ULEVER PCAL FASM ADAMS FCONM FPRM KHTC SIBL TRPOL MUBT SHNI GVGL ARM HUSS AKGL CLIM ZHCM AGSML IDYM FZCM BAPL PIAB LATM ISIL THCCL GLAT WYETH COLG ILTM FTSM CFL JVDC ATEL CLOV STML SHCM SHTM SGPL MODAM RMPL BIFO EXIDE UPFL ZIL AASM RCML FECM LIBM BFMOD BHAT DSML NPSM PGCL SIEM

Performance of SR Financial Services Index

BANKS High Low Close 1,163.20 1,131.51 1,141.95 Total cos Defaulter cos Listed cap 27 - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.03 13.94 40.49

15B

UPTO 5000 VOLUME

FINANCIAL SERVICES

Performance of SR Banks Index Open 1,138.53 Turnover 68,722,014 P/E (x) 7.38

East West Life EFU Life Assurance

2011 Div BR (%) (%)

25B

72.55

Company

2010 Div BR (%) (%)

9.61 5.45

Company

Change % Change 58.62 4.70 Market cap 200-Day High 29,118.04 mn Div Yield (%) 200-Day Low 8.03 -

5491 13.49 8390 5.05

5.87

GAS WATER AND MULTIUTILITIES High Low 1,321.71 1,232.19 Total cos Defaulter cos 2 P/BV (x) ROE (%) 0.95 11.41

20B

25 50B 10 12.5 25 12.5B

970

Open 757.64 Turnover 162,684 P/E (x) 5.57

Performance of SR Gas Water and Multiutilities Index Open 1,247.24 Turnover 935,143 P/E (x) 8.32

LIFE INSURANCE

2011 Div BR (%) (%)

7.8R -

Performance of SR Life Insurance Index

Change % Change -3.25 -0.24 Market cap 200-Day High 104,756.01 mn Div Yield (%) 200-Day Low 7.69 -

Close Chg

-10B 25R

New Jub InsuranceXDXB 989 Pak Reinsurance XD 3000

ELECTRICITY High Low 1,359.12 1,330.51 Total cos Defaulter cos 15 1 P/BV (x) ROE (%) 1.27 9.35

9.25

Central InsuranceXDXB 391 1.48 Century Insurance 457 4.67 EFU General Insurance 1250 12.55 Habib Insurance 450 8.08

Performance of SR Electricity Index Open 1,341.17 Turnover 20,669,112 P/E (x) 13.54

12.49

264 1375 210 525 780 200 524 581 760 397 1008 3180 1186 283 1200 1000 1000 2835 2841 872 340 454 136

High Low 1,517.36 1,474.27 Total cos Defaulter cos 52 11 P/BV (x) ROE (%) 0.45 2.21

Open

High

Low

4.51 2.48 1.70 1.84 4.14 7.37 1.20 2.17 3.59 3.84 2.44 0.63 1.65 2.58 2.14 2.66 2.23 1.78 5.48 -

1.35 10.49 3.70 6.11 1.92 0.57 1.60 2.28 3.37 7.51 7.69 7.03 5.88 2.50 9.24 5.75 7.20 12.40 5.63 0.94 0.80 9.75 0.25

1.55 10.60 3.95 6.45 2.34 0.69 1.75 2.29 3.50 7.70 7.90 7.40 6.10 2.99 9.47 6.75 7.30 12.99 5.84 1.05 1.14 9.98 0.38

1.15 10.25 3.57 6.11 1.55 0.44 1.31 2.00 3.20 7.31 7.35 7.01 5.61 2.40 8.46 5.75 7.10 12.00 5.55 0.87 0.60 9.62 0.13

Close 1,482.79 Listed cap 29,771.58 mn Payout (%) 104.74

Change % Change -3.21 -0.22 Market cap 200-Day High 19,047.97 mn Div Yield (%) 200-Day Low 7.93 -

Close Chg

Volume

Last 60 days High Low

2010 Div BR (%) (%)

1.30 10.50 3.90 6.40 1.77 0.58 1.40 2.00 3.28 7.33 7.41 7.10 6.00 2.55 8.98 5.75 7.25 12.93 5.63 0.98 1.00 9.91 0.13

14742 197146 9006 10386 52908 39658 131833 7447 178585 28816 27004 905839 709452 7034 155573 96005 95374 527454 91160 31357 14274 19656 14000

2.35 11.20 3.95 6.97 2.91 0.84 2.50 2.49 3.95 8.48 8.44 7.45 6.68 3.94 9.49 9.75 8.50 13.86 6.60 1.10 1.99 10.50 0.50

18.5 5 2.2 0 1.2 17 11 21 12.5 10 2.8 15.5 1.04 10 20 10 3 1 17 -

-0.05 0.01 0.20 0.29 -0.15 0.01 -0.20 -0.28 -0.09 -0.18 -0.28 0.07 0.12 0.05 -0.26 0.00 0.05 0.53 0.00 0.04 0.20 0.16 -0.12

1.15 8.95 2.85 5.00 1.12 0.39 1.31 1.79 2.92 6.81 6.99 4.76 4.20 1.50 8.12 5.75 6.92 12.00 5.10 0.80 0.50 9.50 0.05

2011 Div BR (%) (%)

- 5.00 - 5.00 - 10.00 - 12.50 - 7.50 -

Open 1.94 4.65 16.29 34.76 34.19 8.30 38.00 3.60 57.99 7.40 1.70 6.80 55.50 16.25 11.25 17.28 1.01 2.98 66.53 1.90 10.30 150.06 39.60 149.50 0.78 1.56 4.60 15.37 73.50 1.10 1.26 4.90 414.01 13.14 2.01 1.26 40.00 11.99 1.00 40.06 2.00 3.00 14.20 1.50 27.70 5.98 93.00 54.22 0.43 72.00 1.70 2.80 1.55 8.40 3416.10 2.87 52.00 17.47 16.89 7.50 36.50 7.75 14.62 3.50 58.97 98.80 115.76 3.11 9.73 7.93 1.25 0.63 111.52 5.75 0.75 7.00 32.81 3.60 288.95 10.90 5023.94 50.10 40.62 13.00 1.25 9.15 30.00 2.01 0.80 0.56 13.55 22.00 19.33 9.94 5.05 4.00 0.25 5.90 297.99 55.00 7.31 4.42 6.11 82.13 18.14 8.07 814.89 729.82 230.22 1.05 11.77 61.37 38.01 64.21 20.00 15.98 0.49 0.70 1.25 2757.79 49.50 193.16 1350.67 59.74 22.65 25.65 2.99 67.00 4.65 237.65 2.00 27.00 16.99 1005.68

High 1.94 4.80 17.25 36.15 34.00 8.95 38.00 3.55 60.88 8.00 1.30 6.88 58.27 16.50 12.00 17.50 1.38 2.98 66.00 2.45 11.38 154.85 41.58 149.50 1.05 1.80 5.20 15.50 75.54 1.22 1.55 5.60 449.88 13.14 3.01 1.69 43.74 12.97 1.20 39.98 2.00 3.98 15.20 1.58 29.00 5.98 97.45 56.85 0.49 77.69 2.29 3.75 1.99 8.60 3700.00 2.95 52.00 17.50 17.89 8.75 38.25 8.75 15.00 3.79 61.00 97.98 116.50 4.07 9.85 8.38 1.35 1.49 116.66 5.75 1.30 7.60 32.81 4.49 303.39 10.94 5449.00 51.95 41.00 13.49 1.60 9.30 30.00 2.90 0.90 0.99 13.55 23.10 19.50 10.92 5.25 4.00 0.25 6.49 312.80 54.31 8.29 4.42 6.11 82.13 18.14 8.50 860.00 750.00 237.00 1.05 11.77 61.80 39.90 64.21 20.50 15.98 0.50 0.99 1.33 2799.00 51.97 193.16 1400.00 62.43 23.92 26.50 3.00 67.00 4.65 249.53 2.84 28.35 17.00 1034.99

Low

1.60 3.80 16.26 34.76 30.06 8.06 38.00 2.12 52.60 6.06 1.30 6.31 51.88 15.75 11.00 16.02 0.35 2.50 60.00 1.02 9.55 145.25 37.65 143.15 0.60 1.37 4.60 14.37 74.00 1.10 1.11 5.00 417.01 12.60 2.00 1.10 40.00 10.97 1.01 37.01 1.50 2.26 13.30 1.38 26.35 5.10 87.50 54.22 0.16 72.00 1.66 2.80 1.55 7.60 3323.01 2.52 48.00 16.00 16.89 8.50 36.01 7.31 14.50 3.48 58.00 93.00 110.00 3.11 8.73 7.00 1.35 0.63 111.52 4.75 1.30 6.50 31.51 3.60 274.60 10.26 4960.01 48.00 40.25 13.00 1.10 9.00 28.50 1.70 0.61 0.52 12.60 22.00 18.50 9.94 5.05 3.00 0.25 4.90 289.65 54.00 7.31 4.00 5.12 78.03 17.70 7.08 800.00 710.00 218.71 0.80 10.77 61.00 36.20 63.99 20.00 14.98 0.49 0.70 1.06 2606.60 46.00 190.00 1360.00 58.00 22.76 24.55 2.62 63.66 4.04 237.65 1.56 27.00 16.99 1005.00

1.60 4.70 16.30 36.01 31.40 8.46 38.00 3.07 52.76 7.05 1.30 6.52 51.88 16.00 11.03 16.59 1.00 2.50 60.00 2.00 9.86 152.56 40.00 143.15 0.60 1.75 5.20 14.61 74.50 1.10 1.55 5.33 436.14 13.00 2.01 1.35 41.66 10.97 1.01 39.08 2.00 2.91 14.00 1.49 26.35 5.10 89.27 55.00 0.30 74.00 1.66 3.40 1.65 8.45 3553.63 2.52 49.50 16.30 17.07 8.50 36.01 8.75 14.64 3.77 61.00 94.00 116.50 3.25 9.73 7.38 1.35 0.70 115.00 4.75 1.30 7.00 32.49 3.60 300.00 10.94 5200.00 48.02 40.26 13.00 1.10 9.00 28.50 2.00 0.80 0.55 12.60 23.10 18.50 9.94 5.25 3.00 0.25 5.90 291.24 54.31 7.31 4.42 6.11 82.13 18.14 8.07 855.72 746.53 230.22 1.05 11.77 61.37 38.01 64.21 20.00 15.98 0.49 0.70 1.25 2705.45 47.30 193.16 1399.22 59.74 23.92 25.55 2.99 67.00 4.65 237.65 2.00 27.00 16.99 1005.68

Change

Vol

-0.34 0.05 0.01 1.25 -2.79 0.16 0.00 -0.53 -5.23 -0.35 -0.40 -0.28 -3.62 -0.25 -0.22 -0.69 -0.01 -0.48 -6.53 0.10 -0.44 2.50 0.40 -6.35 -0.18 0.19 0.60 -0.76 1.00 0.00 0.29 0.43 22.13 -0.14 0.00 0.09 1.66 -1.02 0.01 -0.98 0.00 -0.09 -0.20 -0.01 -1.35 -0.88 -3.73 0.78 -0.13 2.00 -0.04 0.60 0.10 0.05 137.53 -0.35 -2.50 -1.17 0.18 1.00 -0.49 1.00 0.02 0.27 2.03 -4.80 0.74 0.14 0.00 -0.55 0.10 0.07 3.48 -1.00 0.55 0.00 -0.32 0.00 11.05 0.04 176.06 -2.08 -0.36 0.00 -0.15 -0.15 -1.50 -0.01 0.00 -0.01 -0.95 1.10 -0.83 0.00 0.20 -1.00 0.00 0.00 -6.75 -0.69 0.00 0.00 0.00 0.00 0.00 0.00 40.83 16.71 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -52.34 -2.20 0.00 48.55 0.00 1.27 -0.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

5000 5000 4902 4860 4692 4421 4286 4181 4110 4086 4000 3970 3947 3700 3700 3690 3555 3500 3212 3203 3111 3079 3038 2994 2867 2771 2742 2738 2712 2624 2602 2571 2524 2501 2500 2436 2391 2368 2363 2246 2240 2221 2009 2001 2000 1885 1836 1815 1810 1652 1605 1603 1594 1578 1554 1554 1549 1529 1526 1500 1380 1261 1251 1202 1164 1124 1111 1063 1043 1014 1010 1002 1001 1000 1000 959 955 933 923 901 807 763 714 617 609 600 594 570 569 555 524 510 509 506 500 500 500 467 420 405 397 365 338 206 205 191 180 160 153 150 147 114 104 102 102 100 100 98 97 91 82 73 62 54 50 46 38 21 20 20 15 10 8 7

BOARD MEETINGS

Bank Al-Falah Ltd

KSE 100 INDEX

Dera Ghazi Khan Cement Co Ltd

Fauji Fertiliser Bin Qasim Ltd

Company

Date

Time

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

JS Bank Ltd

18-May

Jahangir Siddiqui & Co Ltd

18-May

3:00

Pangrio Sugar Mills Ltd

19-May

12:00

Sindh Abadgar Sugar Mills Ltd

20-May

3:00

4:00

TECHNICAL LEVELS Company

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position

53.62

Support 1

MA (5-day)

11,982.12

Support 2

11,904.15

MA (10-day)

11,936.21

Resistance 1

12,004.85

MA (100-day)

11,986.80

MA (200-day)

11,935.75

Resistance 2

11,224.49

12,042.30

Pivot

11,973.25

KSE 100 INDEX closed up 87.39 points at 11,967.35. Volume was 42 per cent below average and Bollinger Bands were 38 per cent narrower than normal. As far as resistance level is concern, the market will see major 1st resistance level at 12,004.85 and 2nd resistance level at 12,042.30, while Index will continue to find its 1st support level at 11,935.75 and 2nd support level at 11,904.15. KSE 100 INDEX is currently 6.6 per cent above its 200-day moving average and is displaying an upward trend. Volatility is relatively normal when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of INDEX at a relatively equal pace. Trend forecasting oscillators are currently bullish on INDEX.

Brokerage House

TFD Research

54.00 10.27

MTS Shares `000 MTS Rs `000

10.51

MTS Rate ** NOI Rs (mn) Free Float Rs (mn)

AKD Securities Ltd

28.72

Accumulate

Neutral

TFD Research

36.45

Positive

Technical Outlook

Technical Analysis

Leverage Position

12.437 97.74

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

53.31 41.76

MTS Shares `000 MTS Rs `000

16.99

MA (100-day)

40.55

MTS Rate

MA (200-day) 35.47 Free Float Shares (mn) 326.94

94.835 2,975.52 15.00

** NOI Rs (mn) Free Float Rs (mn)

62.27 13,675.84

Technical Analysis

Leverage Position

RSI (14-day)

35.41

MTS Shares `000

MA (10-day)

22.75

MTS Rs `000

4,679.08

MTS Rate ** NOI Rs (mn) Free Float Rs (mn)

17.82 129.25 4,502.04

MA (100-day) 26.24 MA (200-day) 26.53 Free Float Shares (mn) 200.80

278.07

DGKC closed down -0.41 at 22.42. Volume was 74 per cent below average (consolidating) and Bollinger Bands were 17 per cent narrower than normal. DGKC is currently 15.5 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 volume flowing into and out of DGKC at a relatively equal pace. Trend forecasting oscillators are currently bearish on DGKC.

Target Price

AKD Securities Ltd TFD Research

145 145.25

Brokerage House

Hold

Arif Habib Ltd

Accumulate

AKD Securities Ltd

Neutral

TFD Research

Technical Outlook

Technical Analysis 58.48

MTS Shares `000

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

147.18 155.07 153.26

MTS Rs `000 MTS Rate ** NOI Rs (mn)

Free Float Shares (mn) 630.61

Free Float Rs (mn)

5.50

Recommendations

224

Buy

AKD Securities Ltd

195.41

Neutral

TFD Research

245.4

Positive

598.84 16.50 N/A 92,938.71

Technical Analysis RSI (14-day) MA (10-day) MA (100-day) MA (200-day) Free Float Shares (mn)

Brokerage House

Target Price

47.00 196.62 206.53 193.08 176.98

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

Target Price 71.45 78.6

Recommendations Accumulate Positive

Technical Outlook

Leverage Position

RSI (14-day)

Nishat Mills Ltd

Engro Corporation

Recommendations

143.2

Positive

NBP closed down -0.38 at 51.91. Volume was 75 per cent below average (consolidating) and Bollinger Bands were 66 per cent narrower than normal. NBP is currently 22.6 per cent below its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of NBP at a relatively equal pace. Trend forecasting oscillators are currently bullish on NBP.

Accumulate

44.25

FFBL closed up 0.34 at 41.83. Volume was 77 per cent below average (consolidating) and Bollinger Bands were 61 per cent narrower than normal. FFBL is currently 17.9 per cent above its 200-day moving average and is displaying an upward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into FFBL (mildly bullish). Trend forecasting oscillators are currently bullish on FFBL.

Accumulate

15.99

45.52

BAFL closed up 0.27 at 10.56. Volume was 83 per cent below average (consolidating) and Bollinger Bands were 23 per cent narrower than normal. BAFL is currently 7.6 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.

92.3

MA (200-day) 67.07 ** NOI Rs (mn) 90.19 Free Float Shares (mn) 398.12 Free Float Rs (mn) 20,666.53 Target price for Dec-11 & **Net Open Interest in future market

Buy

Arif Habib Ltd

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

60.4

557.276 21,152.87

Recommendations

30.1

Hold

Technical Outlook

N/A 7,123.55

Target Price

Recommendations

42.2

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

Brokerage House

Leverage Position

Brokerage House

Target Price

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

TFD Research

MTS Rate

Brokerage House

Leverage Position

MA (200-day) 9.82 Free Float Shares (mn) 674.58

AKD Securities Ltd

67.81

TFD Research

MA (100-day)

Arif Habib Ltd

MA (100-day)

AKD Securities Ltd

Positive

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

Buy

MTS Shares `000 MTS Rs `000

Accumulate

11 14.01

Technical Analysis

Recommendations

35.47 51.65

Arif Habib Ltd

Technical Outlook

Technical Analysis

Hold

AKD Securities Ltd

Target Price

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

Recommendations

11.6

Oil & Gas Development Co Ltd

National Bank of Pakistan

Arif Habib Ltd

Target Price

Arif Habib Ltd

39.25 5,722.55 15.00 124.96 34,831.02

Technical Analysis RSI (14-day) 28.33 MA (10-day) 59.37 MA (100-day) 64.09 MA (200-day) 57.49 Free Float Shares (mn) 175.80

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

233.35 10,303.91 15.09 55.46 10,219.25

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

OGDC closed up 0.30 at 147.38. Volume was 63 per cent below average (consolidating) and Bollinger Bands were 32 per cent wider than normal. OGDC is currently 3.8 per cent below its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into OGDC (mildly bullish). Trend forecasting oscillators are currently bullish on OGDC.

ENGRO closed up 2.99 at 196.81. Volume was 82 per cent below average (consolidating) and Bollinger Bands were 72 per cent narrower than normal. ENGRO is currently 1.9 per cent above its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into ENGRO (mildly bullish). Trend forecasting oscillators are currently bullish on ENGRO.

NML closed down -0.90 at 58.13. Volume was 66 per cent below average (consolidating) and Bollinger Bands were 47 per cent wider than normal. NML is currently 1.1 per cent above 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 volume flowing into and out of NML at a relatively equal pace. Trend forecasting oscillators are currently bearish on NML. Momentum oscillator is currently indicating that NML is currently in an oversold condition.

RSI 1st 2nd (14-day) Support Al-Abbas Cement 49.46 2.55 2.45 Allied Bank Limited 50.55 61.20 60.70 Attock Cement 47.09 52.05 51.50 Arif Habib Corp 36.83 21.40 21.20 Arif Habib Limited 38.18 14.30 14.00 Adamjee Insurance 43.08 66.05 65.25 Askari Bank 41.21 11.40 11.30 Azgard Nine 43.72 5.60 5.35 Attock Petroleum 50.89 372.45 371.25 Attock Refinery 49.71 123.65 123.25 Bank Al-Falah 54.00 10.40 10.30 BankIslami Pak 55.43 3.75 3.55 Bank.Of.Punjab 35.78 5.00 4.90 Dewan Cement 32.79 1.40 1.35 D.G.K.Cement 35.41 22.25 22.05 Dewan Salman 38.32 2.15 2.00 Dost Steels Ltd 42.65 1.70 1.60 EFU General Insurance 53.85 33.15 32.70 EFU Life Assurance 54.69 57.10 56.40 Engro Corp 47.01 195.65 194.50 Faysal Bank 37.50 9.60 9.50 Fauji Cement 50.84 4.10 4.00 Fauji Fert Bin 53.31 41.70 41.55 Fauji Fertilizer 61.48 141.45 140.25 Habib Bank Ltd 49.56 120.75 120.35 Hub Power 41.92 36.85 36.80 ICI Pakistan 42.00 152.00 151.00 Indus Motors 45.04 218.70 218.40 J.O.V.and CO 45.29 2.60 2.45 Japan Power 42.94 1.05 0.95 JS Bank Ltd 28.22 2.15 2.05 Jah Siddiq Co 44.21 6.75 6.40 Kot Addu Power 57.48 43.10 42.95 K.E.S.C 37.36 2.30 2.25 Lotte Pakistan 42.61 15.15 15.00 Lucky Cement 53.02 70.55 70.25 MCB Bank Ltd 49.89 203.60 202.40 Maple Leaf Cement 39.09 2.05 2.00 National Bank 35.48 51.35 50.85 Nishat (Chunian) 30.24 24.05 23.55 Netsol Technologies 33.56 21.05 20.90 NIB Bank 31.30 1.60 1.55 Nimir Ind.Chemical 37.83 2.40 2.35 Nishat Mills 28.34 57.70 57.25 Oil & Gas Dev. XD 58.47 146.70 146.05 PACE (Pakistan) Ltd. 36.16 2.65 2.55 Pervez Ahmed Sec 44.28 1.50 1.45 P.I.A.C.(A) 36.56 2.25 2.20 Pioneer Cement 34.45 4.70 4.50 Pak Oilfields 53.69 325.45 323.80 Pak Petroleum 40.10 204.00 203.45 P.S.O. XD 58.65 278.30 275.95 P.T.C.L.A 48.66 16.80 16.75 Shell Pakistan 47.29 208.65 207.95 Sui North Gas 49.74 18.40 17.95 Sitara Peroxide 48.57 17.50 17.25 Sui South Gas 49.80 21.90 21.45 Telecard 39.57 1.50 1.45 TRG Pakistan 43.81 2.55 2.45 United Bank Ltd 54.35 63.60 63.25 WorldCall Tele 30.54 1.95 1.90

1st 2nd Resistance 2.75 2.80 62.50 63.25 53.55 54.50 21.90 22.20 14.90 15.15 67.55 68.20 11.70 11.80 6.15 6.40 375.95 378.20 124.75 125.40 10.80 11.05 4.05 4.20 5.25 5.35 1.50 1.55 22.75 23.10 2.45 2.60 1.90 2.00 34.05 34.50 58.30 58.75 197.85 198.85 9.90 10.05 4.30 4.40 42.00 42.15 143.45 144.20 121.75 122.35 37.00 37.05 154.50 156.00 219.60 220.20 2.85 3.00 1.25 1.40 2.35 2.50 7.50 7.80 43.55 43.85 2.40 2.45 15.60 15.80 71.40 71.95 205.95 207.10 2.15 2.20 52.45 53.00 25.40 26.25 21.45 21.65 1.75 1.80 2.50 2.55 58.80 59.45 148.25 149.15 2.80 2.90 1.65 1.70 2.40 2.45 4.95 5.05 328.35 329.60 205.10 205.65 282.70 284.75 17.00 17.05 210.50 211.65 19.25 19.60 18.05 18.35 22.70 23.05 1.60 1.65 2.65 2.70 64.20 64.45 2.10 2.15

Pivot 2.65 62.00 53.00 21.70 14.55 66.75 11.55 5.90 374.75 124.35 10.65 3.85 5.15 1.45 22.55 2.30 1.80 33.60 57.55 196.65 9.75 4.20 41.85 142.25 121.35 36.90 153.50 219.30 2.75 1.20 2.25 7.10 43.40 2.35 15.40 71.10 204.75 2.10 51.90 24.90 21.30 1.65 2.45 58.35 147.60 2.70 1.60 2.30 4.80 326.70 204.55 280.35 16.90 209.80 18.75 17.80 22.25 1.55 2.60 63.85 2.00

Barclays, HSBC take $2 billion mis-selling hit 5

Monday, May 16, 2011

During 1st Quarter

SLIC secures Rs2.13bn as 1st Year Premiums LONDON: The Lloyds building is seen behind a temporary traffic signal in the city of London. -Reuters

Lloyd's sees $3.8bn in disaster claims LONDON: The Lloyd's of London insurance market will take a $3.8 billion hit from earthquakes and floods in the first quarter, and predicted the high level of catastrophe claims will lift insurance prices this year. Lloyd's estimated catastrophe losses for the first three months of 2011 exceeds the $2.6 billion it paid out in the whole of last year, when hefty claims from an earthquake in Chile and the Gulf of Mexico oil spill halved the market's profit. The estimate is still well within the worst case scenarios Lloyd's prepares for and the market will have no difficulty settling claims, it said.. Lloyd's projected losses include $1.95 billion from the earthquake that devastated Japan in March. February's New Zealand quake accounted for a further $1.2 billion and heavy flooding in Australia cost another $650 million. Lloyd's of London Chief Executive Richard Ward said the first quarter's catastrophes, as well as tornadoes that swept through southern U.S. states in April, should lead to a "firming of rates" as insurers seek to

recoup big payouts to customers. Big natural disasters can trigger a rise in insurance prices as a surge in claims dents the industry's finances, forcing less well-funded players to retrench and freeing those still in the market to charge more. Insurers have said a proliferation of natural disasters since the start of 2010 had boosted the cost of catastrophe insurance and reinsurance, but that prices in the broader market are drifting lower for the third year in a row, weighed by intense competition. TURNAROUND Some in the industry reckon there could soon be an acrossthe-board rise in insurance prices, especially if the June to November U.S. hurricane season generates further big claims. "People are very much talking about us being much closer to a wider reinsurance market turn," said Nick Pope, an analyst at brokerage Jefferies. "Bear in mind that we haven't even gone into the U.S. hurricane season, when traditionally the highest level of losses happens." Bermudabased insurer Catlin (CGL.L),

the third-biggest listed insurer operating in the Lloyd's market, said on Friday a widespread rise in rates would be "totally appropriate" given recent catastrophe losses. Lloyd's, which traces its origins back 323 years to a London coffee house where wealthy merchants sold shipping insurance, said its capital reserves would be unaffected by recent earthquakes and floods. The market, made up of 85 competing syndicates who provide cover against largescale, complex risks, also said there would be no need to call on its central fund -- a financial safety net used in the event of a syndicate being unable to pay claims. Lloyd's projected $1.9 billion hit from the Japanese quake is based on a total insured loss of $30 billion, towards the upper end of estimates of between $20 billion and $34 billion calculated by risk modelling agencies. The quake, one of the most powerful ever to hit Japan, triggered a tsunami off the country's north-eastern coast on March 11, killing thousands. -Reuters

US House backs flood insurance overhauling WASHINGTON: A US congressional panel voted on Friday to reform the troubled government flood insurance program amid heavy flooding along the Mississippi River from the Midwest to the Deep South. As authorities shored up levees to protect New Orleans after towns and farms upstream were inundated, the House Financial Services Committee approved a bill that would overhaul the National Flood Insurance Program, or NFIP. The bill will likely win approval in the full House soon. Then it will have to go to the Senate for review, with supporters hoping to get it to President Barack Obama for enactment before Sept. 30,

when the NFIP is due to expire. Insuring more than 5.6 million U.S. property owners, the NFIP had to be bailed out by taxpayers after it was swamped by claims from Hurricane Katrina in 2005. Now it is $17.5 billion in debt and unable to pay the money back. Moreover, critics say, the program encourages development in flood-prone areas more suited to conservation, subsidizes some policy-holders to live in flood zones, and pays to repair some properties that flood again and again. "This program is too important to let lapse, and too in debt to continue without reform," said Republican Representative Judy Biggert,

who is leading the effort to fix the NFIP. Her bill was approved unanimously by the House Financial Services Committee. "We need to put the National Flood Insurance Program back on stable financial footing so that it can provide homeowners with reliable coverage without putting taxpayers on the line for billions in losses. This legislation will give the program long-term stability, help draw better flood maps, and initiate actuarially sound pricing," Biggert said. The measure would reauthorize the program for five years, reduce subsidies and let insurers raise premiums in phases to levels that more closely reflect actual flooding risks. Reuters

Old Mutual Q1 life insurance sales miss forecasts LONDON: Anglo-South African insurer Old Mutual said a plan to streamline the group and boost investor returns was progressing well as it reported weaker than expected life insurance sales, held back by a downturn in Italy. Old Mutual, which runs banking, insurance and fund management businesses in over 30 countries, had life sales of 369 million pounds ($608.5 million) in the first quarter, it said on Thursday. Analysts had expected sales of 381 million pounds, according to a consensus analyst forecast calculated by the company. The shortfall reflected a weaker performance in Italy, where sales received a one-off boost a year ago due to tax concessions. The weaker performance in life insurance was offset by a strong sales of unit trusts, which rose 20 percent on the year to 2.7 billion pounds, beating the analyst consensus of 2.6 billion pounds. Old Mutual, which last month sold its U.S. life business as part of a plan to simplify its structure, said it was making "good progress" in delivering on this strategy. The company also plans to partly list its U.S. asset management business by the end of 2012, but last year failed to sell its majority stake in South African bank Nedbank to HSBC. -Reuters

PAKRI volume leader TFD Report KARACHI: Insurance stocks saw some positive activities last week at the Karachi Stock Exchange with around 8.7 million shares traded together in life and non-life insurance sectors. Pak Reinsurance was the top traded stock with 6.8 million shares followed by Adamjee Insurance with 1.1 million shares. Top gainers of the week were, EFU Life Assurance up by Rs6.19 to close at Rs57.85 and EFU General Insurance gained Rs2.11 to close at Rs33.64. New Jubilee Insurance lost Rs3.48 to close at Rs54.68 and Central Insurance was down by Rs2 to close at Rs68 to be the major losers of the week.

ISLAMABAD: State Life Insurance Corporation of Pakistan has successfully secured Rs2.13 billion as First Year Premium (New Business) during the 1st Quarter of 2011 showing an increase of 27 per cent while in the year 2010 Corporation had secured record First Year Premium of Rs9.33 billion showing an unprecedented increase of 35 per cent". This was stated by Chairman, State Life Shahid Aziz Siddiqui, while talking to media persons on the occasion of State Life Convention 2011 held at Bhurban Murree. He informed that "State Life till Q-l, 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 has 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," he added. Aziz Siddiqui informed 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 State Life said 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, 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 & Takaful. He informed that State Life is a very sound and stable financial institution which is also evident by the fact that it has assigned "AAA" rating by PACRA (Pakistan Credit Rating Agency). He further stated that State

Life in support of Government social programme "Benazir Income Support Program" has provided Rs. 1,00,000 (one lac) as group insurance to hundred thousands of families. Siddiqui said that State Life's Business in Gulf Region has 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 another question, he said that Corporations' Investment Portfolio is also 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. He further said that in the year 2010 it has secured Rs. 240 million as net income from its real estate operations. Siddiqui said that 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 said 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 Ql2011 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. However, he added that there is a sharp decline in the complaints from the policyholders and their families. -APP

Kansas legislature bans insurance coverage for abortions WASHINGTON: Kansas lawmakers early on Friday passed a bill prohibiting women from receiving general medical insurance coverage for abortions, except when the mother's life is at risk. Women could buy a rider covering abortions, but at their own expense. If the bill is signed by Republican Governor Sam Brownback, as expected, Kansas would join six other states in approving the insurance ban, said Elizabeth Nash, who tracks abortion legislation for the Guttmacher Institute, an abortion rights organization in Washington, D.C. The other states are Missouri, North Dakota, Utah, Idaho, Kentucky and Oklahoma, Nash said. The Kansas ban also extends to health insurance exchanges permitted under recent federal law. Eleven states ban abortion coverage under those exchanges, Nash said. Supporters of the bill said it looks after the interests of employers opposed to having abortions covered by insurance they subsidize. Opponents such as Nash said abortion is an important medical procedure that should be covered like anything else.-Reutes

Old Mutual Q1 life insurance sales miss forecasts LONDON: Anglo-South African insurer Old Mutual said a plan to streamline the group and boost investor returns was progressing well as it reported weaker than expected life insurance sales, held back by a downturn in Italy. Old Mutual, which runs banking, insurance and fund management businesses in over 30 countries, had life sales of 369 million pounds ($608.5 million) in the first quarter, it said on Thursday. Analysts had expected sales of 381 million pounds, according to a consensus analyst forecast calculated by the company. The shortfall reflected a weaker performance in Italy, where sales received a one-off boost a year ago due to tax concessions. The weaker performance in life insurance was offset by a strong sales of unit trusts, which rose 20 percent on the year to 2.7 billion pounds, beating the analyst consensus of 2.6 billion pounds. The company also plans to partly list its U.S. asset management business by the end of 2012, but last year failed to sell its majority stake in South African bank Nedbank to HSBC. -Reuters

AIG to sell $9bn in shares NEW YORK: The US government and AIG announced a plan to sell around $9 billion worth of shares in the bailed-out insurance giant, speeding the firm back toward private ownership. The treasury will sell 200 million shares and AIG 100 million shares for a total of $8.9 billion based on current market value. The sale will be smaller than some reports had suggested. AIG's current low stock price appeared to have played a role. It is currently hovering near yearly lows at $29.62 a share. Once the world's largest insurer, AIG received more than 180 billion dollars from the government to help cover investments that disappeared amid the collapse of the US real estate bubble. It has since sold off units AIA and Metlife to pay of its debt to the US authorities. In addition, "AIG intends to use $550 million of the net proceeds from this offering to fund part of a previously disclosed litigation settlement," the firm said in a statement.-Reuters

sGermany's Stefan Bradl (Kalex) celebrates on the podium after finishing third in the French motorcycling Grand Prix Moto 2 at Le Mans' circuit, western France

Monday, May 16, 2011

Afridi available for ODIs against Ireland KARACHI: Pakistan's oneday cricket captain Shahid Afridi has said he is available for the two ODIs against Ireland later this month. Afridi's announcement comes at a time when the Pakistan Cricket Board has issued him a notice for giving statements on the team management after returning from the West Indies. Afridi also played down reports that he had a serious rift with head coach Waqar Younis over selection matters. The PCB has indicated that it might send the same team that is playing the Test series in the West Indies to play the series against Ireland on the way back home from the Caribbean. But Afridi said he was keen to play against Ireland and would also be in England at the same time playing for Hampshire. The all-rounder will play for Hampshire for their Twenty20 campaign where he will join South Africa spinner Imran Tahir. Afridi, however, said it would be up to the PCB to decide on his fate for the series. "In my reply I cleared that I had no intentions to target any individual or violate the code of conduct," he said. "I've tried to convince the PCB that it was a general comment which I often give in the interest of the team. I'd be happy to play but it's up to the board to decide on my selection." However, the PCB has not yet made any decision over his inclusion. "We're awaiting manager Intikhab Alam's report on the West Indies tour to make a decision on the matter," confirmed a PCB official. After playing against Ireland, Pakistan's next assignment is a tour to the Zimbabwe in August. But before that, the PCB has permitted number of players including Afridi, Abdul Razzaq, Shoaib Malik, Kamran Akmal to sign up for teams in the inaugural Sri Lankan Premier League competition scheduled in June-July. -INP

Former Pak player held in illegal betting KARACHI: Former Pakistan international off-spinner Akram Raza was among seven people detained by police in Lahore for running an illegal betting ring. Police said that Raza, who is now a first class umpire, and six others were arrested at a shopping mall in the upmarket Gulberg district during a late night raid Saturday. Police said the seven men were running a den that was taking bets on the Indian Premier League Twenty20 tournament in India. "One of the arrested men has been identified as Akram Raza, a former Pakistan player," an official at the Gulberg police station told reporters. The 46-year-old, who played

nine tests and 49 one-day internationals from 1989-95, is on the Pakistan Cricket Board (PCB) first class umpires panel and has supervised top matches. Four years ago, several former players raised concerns over the board's decision to name the former off-spinner on the first class umpires panel. Their fears emerged after Raza was among six players fined by a judicial commission in 2000 for non-cooperation in a 18-month long inquiry into match fixing allegations surrounding the Pakistan team. Police added that the seven men, from whom they had recovered cash, computers, mobile phones and telephone numbers, would appear before a magistrate Monday.

One wicket away from win: Rampaul PROVIDENCE: West Indies pace bowler Ravi Rampaul has said that his side are one wicket away from the "breakthrough" they need to win the first Test against Pakistan. Pakistan need another 139 runs to beat West Indies with seven wickets in hand. "We started really well and with the assistance the bowlers are getting from the pitch we believe we can win this match," Rampaul, who provided West Indies with the early momentum, picking up two quick wickets in Pakistan's second innings, said. "The ball swung at the start of the innings and I was able to hit my areas. We will come back in the morning [on Sunday] and run in hard at the Pakistan batsmen again." Rampaul has been in good bowling for West Indies, having picked up three wickets in the first innings. He also picked up eight wickets in the recently concluded ODI series

against the visitors from three games including four wickets in the final ODI in Guyana that West Indies won. He credited his improved performances to better fitness levels and advice from West Indies coach Ottis Gibson. "Last year I had an injury in the Test match against South Africa. After that I spoke to the coach [Gibson] and he offered me some great advice. He told me I needed to improve my fitness levels and he also told me I could bowl a lot faster and be a major asset to the team. "I went away and did a lot of work in all areas of my game and came back with a new focus. I have been doing a lot of good work with Gibson and the work is paying off. He gives us a lot of good advice and he's easy to work with and easy to talk to. My figures are improving and I'm enjoying my cricket playing for the West Indies." -Online

Golf: Henson holds off Bayron to win in Manila MANILA: Berry Henson of the United States held off a plucky late charge from local hope Jay Bayron to win his first Asian Tour title at the gruelling $300,000 ICTSI Philippine Open on Sunday. The Asian Tour rookie made a pivotal up-and-down for par on the last hole to close with one-over-par 73 to clinch his second international title in the span of two weeks at the challenging Wack Wack Golf and Country Club in Manila. Bayron battled to a 72 to finish in second place for a 284 total, one stroke off the champion. South Africa's Jbe Kruger, who finished second on three occasions last year, endured another agonising day when he placed third on 285. Digvijay Singh of India was a stroke back in fourth as he secured his first top-five placing since 2003. -APP

STAMFORD: Chelsea's Branislav Ivanovic celebrates after scoring the opening goal against Newcastle United during their English Premier League soccer match at the Stamford Bridge Stadium. -Reuters

IPOH, Malaysia: Australia's team posed for a group picture with the trophy after winning the final match at Sultan Azlan Shah Cup men's field hockey tournament in Ipoh, Malaysia.-Reuters

Tax authorities to audit South African IPL bonuses JOHANNESBURG: South African tax authorities will conduct a full audit of Cricket South Africa (CSA), including the controversial Indian Premier League bonuses paid to the management and staff in 2009, a report said. According to `Business Day`, the South African Revenue Services (SARS) audit will be done separately from independent investigation into the IPL bonuses that was agreed to by CSA last week despite its being initially shelved in favour of an internal inquiry.CSA President Dr Mtutuzeli Nyoka was ousted after he challenged bonuses of several million and paid to CSA chief executive Gerald Majola and other CSA staff. He was subsequently dismissed in absentia, but took it to the high court which ordered his reinstatement.Nyoka is now pressing ahead with his plans to have an external inquiry after the internal one had cleared Majola of any serious wrongdoing in relation to the IPL bonuses.During the bitter struggle following Nyoka`s initial call, he had publicly accused Majola of lying to him about his IPL bonus, but the pair sealed an uneasy truce last week as CSA agreed to open up its books to external examination. Now SARS is reportedly also looking into whether the IPL bonuses which were not declared to the CSA Board complied with taxation law requirements.The recipients were paid CSA bonuses for their role in the success of the IPL 2 but also got additional bonuses from the IPL, some of which have been repaid by staff.Although Nyoka claimed he was not aware of any SARS audit, CSA media liaison officer Michael Owen-Smith admitted to the daily that there was such a move.SARS would not confirm the audit.Citing confidentiality clauses in tax laws, SARS spokesman Adrian Lackay told Business Day: "SARS cannot make public pronouncements on the tax affairs of CSA (Which) is a duly registered tax entity (and) is entitled to the protection of its rights of confidentiality about its tax affairs."Leading advocate Ishmael Semenya, who is also a member of the CSA Board`s legal and governance committee, will head the process of appointing external auditors by next week."These allegations are not compatible with the image that CSA needs to have," Semenya said amid speculation that CSA wanted the process to be completed before the Proteas.-Reuters

See-saw day sets up nervy finale PROVIDENCE: On a surface atoning for modern cricket's batting sins, a compelling Test again went this way and that, before nestling, at the end of the third day at Providence, loosely in the hands of the West Indies. Saeed Ajmal took centrestage to keep Pakistan in the contest initially, but Shivnarine Chanderpaul prised open that grip, before West Indian pacemen tore it off in an adrenalinepumped afternoon spell. At the end of another slow run-scoring but fast-moving day, Pakistan had recovered to 80 for 3, chasing 219. Commentators have sniped at this pitch's uneven bounce and excessive turn but really, this is a miniscule righting of the massive wrongs of the modern-day batathons of Antigua, Lahore and countless others, where even if bowlers hurled hand grenades they might struggle to dislodge batsmen. Few batsmen here have looked set though admittedly these are two of the poorer batting sides going. But frankly it's made a battle out of a contest that could easily have slipped into yawning obscurity. And no bowler will care much, not Kemar Roach and Ravi Rampaul, who reduced Pakistan to 2 for 3 in their chase, the wickets falling in eight balls across the second and third overs. The pair have bowled with greater purpose and energy than their Pakistan counterparts; at pace, both moved the ball in and away in a high-tempo burst that decapitated Pakistan. Rampaul sent back Taufeeq Umar and Azhar Ali

before Roach dismissed Hafeez. That Pakistan weren't swept away entirely was down to Misbah-ul-Haq and Asad Shafiq, battling hard in a 78stand - the highest of the Test incidentally - to close without further damage. The pair were unruffled, running well and taking advantage of anything loose. Both clipped through the legside well, Shafiq adding a pretty drive or two and cuts along the way. There were scares - Shafiq was dropped on zero and then 'bowled' by Darren Sammy only for the bails to not fall but they remained unharmed. Ajmal will not care a jot either, after picking up a careerbest six wickets and ending with match figures of 11-111, his first ten-wicket haul and the third-best by a Pakistani against West Indies. To his credit there is more than a little of (Pakistani singer) Rahat Fateh Ali Khan in him - he has exploited the surface better than anyone. He began early, trapping nightwatchman Roach in the day's first full over. Lendl Simmons fell soon after off Wahab Riaz and the real game began: Ajmal against Chanderpaul and Ramnaresh Sarwan. Neither looked confident, Ajmal turning it this way and that, up and down, all over. But Sarwan was just beginning to figure something out when undone by one that spat up at him. Ajmal then got involved in the field, his throw completing a run-out of Brendan Nash which Chanderpaul began by selling him a dummy. -Agencies

Aussie beat Pak, secure Azlan Shah Cup KUALA LUMPUR: Australia secured the title of field hockey after beating Pakistan 3-2 in final showdown of the Azlan Shah Cup on Saturday. Australia sealed the win with a golden goal in the 83rd minute courtesy of Christopher Ciriello who also scored the opening goal of the match during which Pakistan were left trailing twice but equalized through Sohail Abbas and Rehan Butt. Australia grabbed the lead the second time through Glenn Turner. Australia were awarded their first penalty corner in the 7th minute but Pakistan's goal keeper Imran Shah made a good save to deny Ciriello. The save from Shah was in vain as Ciriello scored in the 12th minute through another penalty corner. After Australia had the lead, Pakistan were looking dangerous and Butt's rebound shot off Mohammad Rizwan's attempt was saved by George Bazeley followed by another attempt by Haseem Khan which was sent wide into the side netting. The Green Shirts' first penalty corner which came in the 28th minute was wasted as Abbas failed to score. However, two minutes later, Pakistan were awarded another penalty corner and Abbas made no mistake as he scored the equalizer. Minutes before half time, Australia were awarded another penalty corner which they failed to convert. Australia grabbed the lead in the second half through Turner in the 44th minute minutes after which Butt missed a sitter. But soon Butt got a chance to make amends for his miss when he equalized through a penalty corner in the 62nd minute.-Agencies

FHockey: SKorea trump India for fifth in Malaysia KUALA LUMPUR: South Korea finished fifth Sunday at the Sultan Azlan Shah Cup after holding off India 2-1 in a repeat of last year's washed-out final. Both teams were named joint champions last year but were reduced to playing for minor positions this time in Ipoh, Malaysia. Nam Hyun-Woo put South Korea ahead in the 11th minute before Jang Jong-Hyun added a second in the 21st minute to put the Koreans firmly in charge.

Vikram Pillay pulled a goal back early in the second half for India but an anticipated charge never really materialised from the one-time hockey giants. For the world-number six South Koreans it was a second win over the Indians in the tournament after they took the opening tie 3-2. South Korea coach Shin Seok-Kyu said that they knew how to beat India and stuck to their game plan. "But in the second half we were a little casual and this

gave the Indians a chance to hit back. But luckily, we were able to hold on to our lead," he said. His counterpart Harinder Singh said: "It was still a mixed game and we played well only in patches. "At this level that is not enough. We have learnt a lot in this tournament and we need to ensure that what has been learnt will be put to good use. "It is sad we finished sixth but we were in the fight for a better position until the end. So that was a good aspect."

Analysis

Monday, May 16, 2011

UN PROTECTION OF CIVILIANS AT ISSUE AFTER LIBYA ISSUE * R USSIA , C HINA * D IPLOMATS SEE

ecent U.N. resolutions on Libyabroke new ground in backing international action to protect civilians, but the stalemated civil war that has ensued could roll back those advances, diplomats and analysts say. Russia, China and other powers have voiced dismay that the world body has appeared to take sides in an internal conflict, not just in Libya but also in Ivory Coast, where a Security Council resolution led to the ousting of an incumbent ruler. As a result, veto-holders Russia and China may not be as willing in future to permit sweeping endorsements for tough action, either by a coalition -- as in Libya -- or by U.N. peacekeepers -- as in Ivory Coast, diplomats say. No one contests the principle of protecting civilians during armed conflict, a theme that has been on the Security Council agenda for more than a decade. The skeptics' concern is that it will be used as a cover by Western powers bent on overthrowing leaders they do not like. More generally, it raises the specter of "interference in the internal affairs" of sovereign states, a taboo for Moscow and Beijing for decades. In Libya, a March 17 Security Council resolution authorized "all necessary measures" to protect civilians as Tripoli looked set to

crush rebels who had seized control of the east. Western air and missile strikes on the forces of leader Muammar Gaddafi drove them back from the rebelstronghold of Benghazi. It was the first time the Council had authorized a military response to protect populations in a non-consenting state. In Ivory Coast, a similarly worded resolution passed on March 30 resulted in military action by French and U.N. peacekeepers that culminated 12 days later in the arrest of Laurent Gbagbo, who had refused to cede power after a presidential election the United Nations said he lost. As a consequence, Gbagbo's challenger, Alassane Ouattara, took over the West African country. OVERSTEPPING AUTHORITY Following the two resolutions, human rights groups were ecstatic over what they saw as a new willingness by the United Nations to enforce principles to which it had long paid lip service. Russia and China, faced with an Arab League call for U.N. action on Libyaand West African support over Ivory Coast, had abstained in the first resolution and voted for the second. But both soon made clear they thought the United Nations was at risk of overstepping its authority -- not protecting civilians but backing one faction in a civil con-

SAY WORLD BODY SHOULDN ' T TAKE SIDES COMPLICATIONS FOR ACTION OVER S YRIA

flict. At a Security Council debate this week, Russian Ambassador Vitaly Churkin said it was "unacceptable for U.N. peacekeepers ... to be drawn into armed conflict and essentially to take the side of one of the parties." Chinese Ambassador Li Baodong said, "There must be no attempt at regime change or involvement in a civil war of a country by any party in the name of protecting civilians." Similar concerns have been expressed by Brazil, India and South Africa, which are also on the Security Council. The implications have not been lost on Western diplomats who had hoped the Council's adoption of the Libya and Ivory Coast resolutions might set a precedent. "There was a chance to create a model for the protection of civilians inLibya. But now it's going to be very difficult in the future to persuadeRussia and China to support such operations," a diplomat said. An immediate casualty could be a Western attempt to bring aboutSecurity Council action on Syria's violent crackdown on antigovernment protesters. "Some people are cautious in the context of Libya," a diplomat commented. ARCANE DEBATE Protection of civilians is written into the mandate of at least seven U.N. peacekeeping forces around the world and has been the subject of

regular reports by U.N. Secretary-General Ban Kimoon and his predecessor, Kofi Annan. These, however, have tended to focus on the soft end of the subject, such as programs to train peacekeepers, rather than the sharp end of NATO bombing a government army, as in Libya. The subject also has become enmeshed with an arcane debate at theUnited Nations over whether the world body has a "responsibility to protect" -- or R2P in U.N. jargon -- populations threatened by genocide or

other mass atrocities. That concept was launched in a 2005 summit of more than 150 world leaders in a belated response to a perceived U.N. failure to prevent massacres in Rwanda and Bosnia in the 1990s. A carefully crafted declaration said the responsibility began with the government of the country concerned. If that failed, it foresaw a sliding scale of international action ranging from advice through mediation to -- in a last resort -- intervention by force authorized by the Security Council.

A General Assembly conference two years ago showed that most U.N. members broadly supported R2P, but envoys from leftist states in Latin America and elsewhere denounced it as a smokescreen for "colonialism and interventionism" by the West. Some diplomats say that if the Libyan insurrection had toppled Gaddafi in a couple of weeks, rather than extending into a drawn-out civil war, concerns about how protection of civilians was to be interpreted would have been far fewer.

Supporters of R2P say that was never likely to happen and it was too soon to say the concept was fatally damaged. But Ramesh Thakur of the Australian National University said, "The evolution of R2P, and prospects of its being authorized/used again, will depend on how Libya turns out. If NATO respects its limitations and success is achieved, R2P stands vindicated. If (resolution) 1973 (onLibya) is abused and a messy stalemate ensues, the bar will be greatly raised." -Reuters

EQUITIES MARKETS UNDER DARK CLOUD * DOLLAR'S DECLINE STARTING TO UNNERVE SOME INVESTORS * WASHINGTON MOSTLY UNVEXED, NO CHANGES EXPECTED FROM FED * CENTRAL BANKS, PRIVATE BUYERS WORRIED ABOUT TREASURIES

he big money is calling a halt to the surge in stock prices. Declines in oil and metals prices are being seen by an increasing number of fund managers and strategists as a signal to get out of riskier areas of the equity market. And that means avoiding things like Chinese IPOs and sticking to the boring stuff, like utilities. The growing concern is that stocks had priced in an overly optimistic economic path, and the recent breakdown in commodities and shift in equities to safer industries like health care suggest a reckoning in coming months. Ken Fisher, founder of Fisher Investments which manages about $38 billion in equities. is among those concerned many investors have become overconfident. "I think expectations for the stock market are a bit on the high side," he said. Prominent strategists at Goldman Sachs and Credit Suisse foresee better results for stocks less tied to the economic cycle. Doug Cliggott, head of equity strategy at Credit Suisse, wrote: "Gone is the US equity performance profile that suggested bold optimism on growth." Commodities have been at the forefront of the selling so far. Big rallies in hard assets

such as gold, silver and oil ended in an ugly slump last week. Silver crashed 30 percent in its worst fall since 1980. Oil, which was until recently worrying investors with its sharp ascent, fell around 15 percent. There are two schools of thought as to why commodities are slumping. One is that the Federal Reserve's $600 billion program to buy Treasury debt has helped investors divert funds to commodities and equities, creating a bubble in those assets, which is now starting to burst. "Investors and market observers are divided over whether this is a big deal or not," wrote Cliggott, who wrote CS is "in the 'it's a big deal' camp." The other is that it is a sign of impending weakness in the economy. Copper, known as the "metal with a PhD" for its ability to act as a predictor for the economy given its wide-scale industrial applications, has hit a five-month low. The reduced appetite for speculative investments has shown in the outperformance of defensive stocks, whose fortunes are less tied to the rise and fall of the economy. The S&P 500's healthcare and utilities sectors were the performance leaders over the

last month, rising 2.9 percent and 2.6 percent, respectively. That's despite a 1.5 percent fall in year-over-year earnings growth in utilities in the first quarter, worst of the S&P's 10 sectors. Healthcare, long a gonowhere sector, has had a whopping rally. The sector has gained for seven straight weeks, and is up 14.9 percent this year, best of the 10 S&P sectors. Energy, down 7.8 percent in the last seven weeks, is the worst performer in that time. Goldman Sachs says it has become "much less confident in the near-term equity picture," exiting what it called its "top trade" in U.S. banks, and doing the same with a trade that was long industrial shares relative to consumer staples. Cliggott sees a 10 percent decline at the end of the Fed's so-called QE2 stimulus program -- which is what happened at the end of the first round of Fed buying -- as the "base case" scenario. The firm continues to recommend a short financial/long health care trade, as well as a long consumer staples/short consumer discretionary trade. EPFR Global, which tracks fund flows, said Friday that global equity funds experienced their first outflow since mid-March.

SMALL CAPS AND IPOS Small and mid-cap stocks, which typically lead a strong market, have started to see their relative outperformance to large caps wane. Meanwhile, momentum indicators show the strength in S&P 500 is starting to decline as well. There are also signs of fatigue in the IPO market after a flood of Chinese IPOs and leveraged buyouts at the start of the year. Shares of Chinese dating website Jiayuan.com fell in their Nasdaq debut, while

social networking site Renren, dubbed China's Facebook, reversed all its gains on its market debut and traded below its offer price. Goldman argues stocks have been driven further than economic fundamentals justify by heightened risk appetite. Sentiment indicators are elevated but off highs earlier in the year, while the CBOE Volatility Index, or Vix ,is at pre-financial crisis levels, signs investors may be getting complacent. However, some say there is room for the market to move

higher before taking a turn for the worse. Bullish investors point to robust first quarter earnings. Just under three quarters of S&P 500 companies beat Wall Street's earnings estimates and investors have pointed to sturdy revenue growth. The S&P's index of retail stocks recently hit alltime highs. Peter Lee, a technical analyst at UBS, is expecting the S&P 500 to run to 1,400-1,450 in the summer before topping out. Fisher believes elevated expectations will mean the

market struggles through the rest of the year. He expects a sideways movement at current levels. "We have characterized this year as more of what you'd think of as the full-spectrumof-pickers year, whether it's someone that picks stocks, sectors, countries, or they're particularly nimble -- which I'm not -- at getting in and out of the market for short-term moves." David Joy, chief market strategist of Columbia Management Investment Advisers, one of the largest U.S. fund managers with over $350 billion under management, has been cutting equity exposure over the past three months. Joy said he started the year with a modest overweight in equities, but has cut that to neutral. That was partly a response to the impending end of the Fed's stimulus program, and partly due to the potential for disruption in the energy markets, he said. The Federal Reserve's massive $600 billion stimulus to financial markets is set to draw to a close at the end of June. How markets will react is something of a wild card. "As we get a little closer to the end I think you could start to see the equity market's volatility start to increase," Joy said. -Reuters

International & Continuations

Monday, May 16, 2011

UN in new bid for Libya truce, revolt enters 4thmth TRIPOLI: UN special envoy to Libya Abdul-Ilah al-Khatib arrived in Tripoli Sunday to urge a ceasefire between Moamer Kadhafi's troops and rebels seeking to topple the strongman, as an antiregime revolt entered a fourth month. The head of Britain's armed forces, meanwhile, said NATO should widen its bombing campaign to ensure Kadhafi doesn't manage to cling to power, while Pope Benedict XVI called for negotiations to end the violence. Khatib was received by Foreign Minister Abdelati Laabidi, who according to state news agency JANA told him of "serious violations" by NATO, which has been in charge of enforcing a UN-mandated no-fly zone over Libya since March 31. Laabidi "informed the UN secretary general's envoy of the extent of abuse and serious violations committed by NATO against the Libyan people in bombing civilian targets and inhabited areas in different Libyan cities," JANA said. The foreign minister also condemned the killing of civilians and the "assassination attempt" against Kadhafi, whose Bab alAziziya compound -- where he resides -has been targeted by several NATO strikes in recent weeks. Soon after Khatib arrived, two loud explosions were heard in Tajura, an outlying suburb of the Libyan capital, a witness said.

JANA reported that NATO air raids had on Sunday also targeted "military and civilian" sites in the city of Zuara, 120 kilometres (75 miles) west of Tripoli. UN chief Ban Ki-moon said earlier in the week that Khatib would hold talks in Tripoli with Prime Minister Baghdadi Mahmudi. Ban said he had urged Mahmudi on Tuesday to halt attacks on civilians immediately and called for "immediate verifiable ceasefire negotiations towards the peaceful resolution of the conflict and unimpeded access to humanitarian workers." General David Richards, Britain's chief of the defence staff, meanwhile told Britain's Sunday Telegraph that more military action was needed against the Libyan strongman. "The vice is closing on Kadhafi, but we need to increase the pressure further through more intense military action," he said. The general said he wanted NATO member states to support the targeting of Kadhafi's regime, not just targets which pose an immediate threat to civilians, such as tanks and artillery. "The military campaign to date has been a significant success for NATO and our Arab allies. But we need to do more. If we do not up the ante now there is a risk that the conflict could result in Kadhafi cling-

ing to power," Richards said. "At present, NATO is not attacking infrastructure targets in Libya. But if we want to increase the pressure on Kadhafi's regime then we need to give serious consideration to increasing the range of targets we can hit." Protests against Kadhafi's 41-year autocratic rule began on February 15 and quickly escalated into a popular uprising, inspired by revolts in Tunisia and Egypt that toppled their respective hardline rulers. Kadhafi ordered his forces to crush the uprising, prompting an armed rebellion which has claimed thousands of lives while seeing much of eastern Libya fall into the hands of insurgents who have vowed to march on Tripoli and topple Kadhafi. On March 19, French, US and British forces, under a UN mandate to protect civilians, launched air strikes on Kadhafi's forces in a campaign that was taken over by NATO on March 31. The ICC chief prosecutor said on Sunday he was 'almost ready' for a Libyan rights abuse trial, as he prepared to apply for arrest warrants. Luis Moreno-Ocampo is expected to ask International Criminal Court (ICC) judges in The Hague to issue three arrest warrants on Monday, when the names of the accused could be revealed. -Reuters

Shuttle ready for launch CAPE CANAVERAL: NASA unanimously approved a Monday morning launch attempt for the space shuttle Endeavour, after reviewing all the repairs for an electrical problem that grounded the next-tolast shuttle flight two weeks ago. The flight to the International Space Station will be led by commander Mark Kelly, the husband of U.S. Rep. Gabrielle Giffords, who was critically wounded during a January shooting rampage in Tucson, Ariz. She was present for the first launch attempt, and is to be on hand

for this one as well. Mission management team chairman Mike Moses said Saturday he is confident the repairs took care of the electrical short and blown fuse that prevented a string of heaters from turning on during the first launch attempt on April 29. A thermostat with an exposed wire was replaced, as was a switch box with a blown fuse. "In our minds, we are good to go," Moses told reporters. Forecasters put the odds of good weather at 70 percent. The main concerns are stiff

crosswind and low clouds. "Looks like we r flying !!!" astronaut Mike Fincke said in a Twitter update late Saturday afternoon. Launch director Mike Leinbach said an estimated 500,000 spectators are expected to jam area roads and communities in advance of Monday's scheduled 8:56 a.m. launch. That's more than the crowd for Discovery's final launch in February, but far short of what was anticipated for Endeavour's launch attempt on April 29. "They're not quite expecting

that big surge ... but still it will be a heck of a traffic jam," Leinbach said. Because of the clogged roads, NASA may opt for a two-day delay rather than the usual one day, if Monday's try is called off in the final few hours of the countdown. Launch controllers need to be able to get home and rest, he said. President Barack Obama and his family were among those who traveled to Kennedy Space Center last month hoping to see a launch. He met with the astronauts and visited with Giffords, but won't return Monday. -Reuters

CONTINUATIONS No #1

Continued from page 12

generation capacity of 9.6 MW. It was the biggest hydropower station in the country when Pakistan came into existence. Its generation capacity elevated to 19.6 MW in 1952 with the addition of two turbines of 5 MW each. During the early days of Pakistan when there were no hydel stations like Warsak, Mangla and Tarbela, Jabban Hydropower Station played a pivotal role in the development of newly-born country by generating cheap hydel electricity. After a significant contribution for socioeconomic uplift of the remote areas for about seven decades, the power station was badly damaged in a fire incident. Thereafter, Wapda decided to undertake complete rehabilitation instead of its repair. Under the rehabilitation works, four units of 5.5 MW each will be installed to elevate its generation capacity to 22 MW. -Agencies

No #2

Continued from page 12

The interior minister further stated that Pakistan is facing a difficult situation. Pakistani nation has to show unity and determination as exhibited during the 1965 war. The expatriate Pakistanis should inform their interlocutors about the sacrifices of Pakistan and our strengths. He underscored that the challenge of terrorism was imposed on Pakistan. The presence of Osama bin Laden in Pakistan could be a part failure of our country but it has been mainly due to lack of latest technical capacity. It should be noted as to who is financing the terrorists. Pakistan is a victim of terrorism. Al Qaeda has targeted the institutions and installations of government of Pakistan including the GHQ, offices of ISI and FIA. The world community should respect our sovereignty and appreciate our sacrifices against terrorism. Rehman Malik hoped that US would respect the recent unanimous resolution of Pakistan's Parliament. He thanked the leadership of UAE to stand by Pakistan in every challenging time and provide their full support. -Online

No #3

Continued from page 12

Judges were regularly paying visits of the jails and considerable number of petty cases have been decided during such visits. The Committee also observed that pursuant to such visits the living condition in jails has also been improved. The Committee also reviewed the data of offenders released on probation. It was informed that previously the law was not applied by the Courts; however, after implementation of Policy 38212 offenders have been released on probation by invoking the provisions of Probation of Offenders Ordinance, 1960 by the courts in the Province of Punjab. Whereas; 1388 offenders were released on probation in the Province of Sindh, 2244 in the Province of Khyber-Pakhtunkhwa and 24 offenders in Balochistan. The Meeting was also informed that previously the institution of Reclamation and Probation was neglected one and most of districts were without Probation & Parole Officers; however, after enforcement of Judicial Policy the Provincial Governments have realized the importance of this institution and have taken steps to strengthen the same in terms of man power and necessary infrastructure. The Committee stressed upon the provincial government to expedite the process of appointment of probation officer so that the supervision of released probationers could be made effectively. The Committee reviewed the performance of courts in the light of statistics presented by the Secretary, NJPMC and observed that that by and large it had come up to the aspirations of litigant public. Nonetheless, there was scope for better performance and making the system more efficient and progressive. The Committee appreciated the performance of district judiciary and urged the Judges to decide the cases in a free and impartial manner by following the procedure and giving fair opportunity to the parties to contest their cases. The Committee also reviewed the performance of Special Courts and Administrative Tribunals. Habib ur Rehman Shaikh,

Secretary NJPMC presented the statistics of cases pending instituted and disposed by these Courts/Tribunals. The Committee observed that the performance of these courts is not up to the mark and as such required to be strictly monitored to meet the expectations of relevant litigants. The Committee resolved that since the National Judicial Policy was also applicable on these courts; therefore, their performance should also be monitored by the respective High Courts. The Chief Justice of Pakistan constituted a Committee of Chief Justice Lahore High Court and Chief Justice of Balochistan High Court to examine the composition of these courts, workload & procedure and recommend measures for improving the working of these courts by rationalizing the number of judges. The Committee reiterated its commitment to show zero tolerance for corruption in the justice sector. The Committee also reviewed the status of project of construction of new jail for Islamabad and took serious notice of a delay in the execution of the project and requested the Chief Justice Federal Shariah Court to convene meeting of concerned authorities and emphasize upon them to take steps for early completion of this project as after establishment of Islamabad High Court the need for separate jail in Islamabad Capital Territory was greater than before. The Committee also reviewed the recommendations of National Judicial Conference, 2011. The Chief Justice of Pakistan observed that the Conference proved a productive event as it was attended by representatives of all stakeholders of justice sector, academia, scholars, jurists etc. The basic object of this event was to understand and develop a mechanism to further improve the performance of administration of justice, he added. The Chief Justice observed that the recommendations made by the thematic groups were valuable and would be incorporated in the National Judicial Policy. -Agencies

No #4

Continued from page 12

Further south, more than 5,000 demonstrators also held a mass rally in the southern Gaza city of Rafah, which lies on the border with Egypt, foreign correspondent said. They waved Palestinian flags and held up huge replica wooden keys to homes they fled or were expelled from during the Arab-Israeli war which accompanied the creation of the Jewish state. Since Friday, Palestinians and Arab Israelis staged a series of events in the run-up to Sunday's anniversary. In the southern city of Hebron, nine people were hit by rubber bullets fired by Israeli troops as an estimated 2,000 demonstrators held a protest, with clashes also reported in the nearby towns of Al-Arub, Beit Ummar and Bani Naim. And eight Palestinians were hit by rubber bullets in heavy clashes near the Qalandiya crossing between the West Bank town of Ramallah and annexed east Jerusalem, where thousands gathered for a protest, medical sources said. In Jerusalem, police arrested 13 people for disturbing the peace as clashes erupted in several locations across the eastern sector of the city, pitting stone-throwing youths against police and border police in riot gear. In Tel Aviv, a truck driven by a 22-year-old Arab Israeli ploughed into a bus and at least four cars, killing one person and injuring another five with police investigating whether the driver had been acting on nationalist motives. For two days, stone-throwing youths and police have been locked in clashes across east Jerusalem, which turned deadly on Friday when a 16-year-old boy was shot in the stomach. He died early on Saturday, with a relative telling AFP he had been shot by a Jewish settler. More than 760,000 Palestinians -- estimated today to number 4.7 million with their descendants -- were pushed into exile or driven out of their homes in the conflict that accompanied the Jewish state's foundation. The violence came as Palestinians across the region marked the anniversary of the state's establishment in 1948, known in Arabic as the "nakba" or "catastrophe." Israel celebrated the 63rd anniversary on Tuesday, in accordance with the Hebrew calendar. -Agencies

No #5

Continued from page 12

Late Saturday, French media commented Strauss-Kahn's arrest could cost him the top job at the IMF which he has held since 2007 as well as any chance at the French presidency. Furthermore, the French government considers that IMF chief Dominique Strauss-Kahn is innocent until proven guilty following his arrest in New York on sexual assault charges, its spokesman Francois Baroin said Sunday. "The French government respects two simple principles: that the judicial proceedings are under way under the authority of American justice, according to American law, and the respect for the presumption of innocence," Baroin said on France 2 television. Strauss-Kahn, managing director of the International Monetary Fund, was the favorite potential candidate in the polls to win the French presidency in next year's election, ahead of President Nicolas Sarkozy. Police arrested Strauss-Kahn in New York and charged him with attempting to rape a maid in a hotel room. -Agencies

No #6

Continued from page 12

security of Afghanistan under long-term strategic partnership. -Online

No #7

Continued from page 12

MCB is already active in the Gulf via a subsidiary in Bahrain. The bank also has an office in Dubai with permission to carry out restricted banking. The Pakistani bank saw a nine percent rise in net profits during 2010 to $198m. The Nishat Group, which has assets valued at $5bn and which Mansha chairs, has operated an insurance company in the UAE under the Adamjee Insurance brand for 40 years. The conglomerate has just launched its Nishat Linen textiles brand in Dubai, and is aiming for at least 20 stores in the Gulf region within the next two years. NNI

No #8

Continued from page 12

people from different diseases. Water purification plants were also set up to provide clean drinking water in the hard-hit areas. The Ambassador of the United Arab Emirates in Islamabad Saif Al Awani said that UAE will continue it support to the people and government of Pakistan as the UAE rulers have deep-rooted ties with Pakistani brethren.-NNI

No #9

Continued from page 1

Hillary Clinton while appreciating Islamabad's role in war against terrorism said that US hopes the relations between the two nations would keep on going.-Agencies

No #10

Continued from page 1

military officials prosecuting the campaign against the insurgency. Kerry said that "this is a critical moment in terms of the relationship with Pakistan" and said it was "fair to say that some of my colleagues in the House and Senate have deep reservations about whether or not Pakistan is committed to the same goals, or are prepared to be a full partner in pursing those goals." He added that there were calls for a "shift in the aid program," and that "unless there is an improvement in the current situation, I think it will be very difficult to argue to the American people that while some programs are being cut, there ought to be additional funds allocated to the current confused situation." Although he lauded Pakistani help in the past, including allowing American intelligence personnel to operate in Pakistan, - which he said had helped the US track bin Laden - he also said he was concerned about some of their actions. Kerry said that during a visit to Khost province, located on the eastern border with Pakistan, he was briefed on Taliban and insurgent safe havens just across the frontier. "Yes there are insurgents coming across the border," Kerry said. "Yes, they are operating out of North Waziristan and other areas of the sanctuaries. And yes, there is some evidence of Pakistan government knowledge of some of these activities in ways that is very disturbing. That will be without any question one of the subjects of conversation." But he also said that bin Laden's death may present a new opportunity for reconciliation with the Taliban in Afghanistan. Kerry's trip also comes amid growing condemnation of the US raid from Pakistani leaders, military officials, the Parliament and Islamic hard-liners. The Pakistani government has threatened reprisals, and the Parliament on Saturday passed a nonbinding resolution demanding a halt to drone strikes against militants in the tribal areas. -Agencies

No 11

Continued from page 1

"You have to somehow convey to the Pakistanis that they have arrived at a big choice." "People who were prepared to listen to (Pakistan's) story for a long time are no longer prepared to listen," the official went on to say. But few officials are willing to consider the alternatives if Pakistan makes the wrong choice, the report said. Every available option - from limiting US aid and official contacts to unleashing more unilateral ground attacks against terrorist targets - jeopardizes existing Pakistani help in the war on terror, The Post noted. Military success and an eventual negotiated settlement of the Afghanistan war are seen as virtually impossible without some level of Pakistani assistance, the paper pointed out.-Agencies

No #12

Continued from page 1

Furnace Oil (FO) contributed 37 per cent, 35 per cent and 30 per cent respectively, in cumulative decline during April 11 while some support was realized through Kerosene and aviation fuels. As per research analyst of InvestCap, among individual refineries, a more severe downfall was witnessed in BYCO Petroleum Pakistan Ltd (BYCO) with its sales going down 49 per cent MoM. BYCO's FO supply dropped by hefty 65 per cent MoM while its contribution to total industry FO supply also thinned down to 3 per cent from average 7 per cent realized during 10MFY11. Attock Refinery Ltd (ATRL) posted thinner Mogas and HSD supplies (lower by 17 per cent MoM and 2 per cent MoM in April 11) while its FO supplies actually improved by 7 per cent MoM. On the other hand, National Refinery Ltd (NRL) showed a decline of 10 per cent MoM in its FO sales while its HSD sales improved by 5 per cent MoM in April 11. In terms of product efficiency, industry's white oil yield remained flat with nominal 1 per cent MoM growth. Individually, ATRL showed a decline of 8 per cent MoM in its white oil yield due to lower HSD and Mogas output while NRL's yield improved by 7 per cent as it was able to sustain higher HSD sales during April 11. BYCO also showed a whopping 77 per cent MoM rise in its yield but the same is attributed to lower relative FO sales.

No #13

Continued from page 1

Beijing, Prime Minister Gilani will hold substantive talks with Chinese President Hu Jintao and Premier Wen Jiabao and exchange views on "deepening bilateral relations, promoting practical cooperation across the board as well as other issues of common interest". The Spokesperson said Pakistan and China will also ink a number of cooperation documents in the fields of economy, trade, finance and culture. The Prime Minister will meet Jia Qinglin, Chairman of the National Standing Committee of the Chinese People's Political Consultative Conference (CPPCC). He will also interact with the members of China's business community besides addressing the students at China's prestigious Peking University. Spokesperson Tehmina Janjua said Pakistan and China enjoy an "all-weather and strategic partnership". She said Chinese people give great importance to symbolism and Prime Minister Gilani's visit to China will be significant "both symbolically and concretely". "Pakistan will take this opportunity to make concerted efforts with China for the enhancement of friendly interaction and taking bilateral relations to new heights", she said. -NNI

No #14

Continued from page 1

President Asif Ali Zardari at Presidency. Chief of Army Staff General Ashfaq Pervez Kayani was also present during the meeting that discussed current security situation, it added. Earlier the sources described the three top figures on the same page during the meeting on following the message in the Parliament's resolution in letter and spirit to restore feelings of the Pakistani people hurt by the American unilateral operation in Abbottabad. "Troika was unanimous in telling the US that Pakistan would no more tolerate unilateralism in terms of covert operations and drone attacks," the sources added. During the meeting the Army Chief assured the political leadership that the armed forces as well as the premier intelligence apparatus would not disappoint the nation, the sources said. The troika also undertook to ensure timely setting up of an Independent Commission to probe into the Abbottabad operation that killed Osama Bin Laden. The army and the government were all out to facilitate both the establishment and proceedings of the Commission as transpired from the Sunday meeting according to the sources. In a sign of Pakistani anger, the chairman of Pakistan's Joint Chief of Staff Committee, General Khalid Shameem Wyne, on Friday canceled a five-day visit to the United States that had been set to begin on May 22. Kerry, chairman of the powerful Senate Foreign Relations Committee, while speaking Sunday in the Afghan capital, said there was some evidence of Pakistani knowledge of Taliban sanctuaries in Pakistan. -Agencies

No #15

Continued from page 1

hydro-electric generation, Furnace Oil consumption declined 0.4 per cent to 7.21 million tons during 10MFY11 compared with 7.24 million tons in same period last year. However, Mogas consumption remained robust during the period, and it showed a surge of 18 per cent to reach at 1.87 million tons against 1.58 million tons in 10MFY10. We expect volumetric growth of above 16 per cent in Mogas sales during FY11.

No #16

Continued from page 1

Meanwhile, an Indian guard of India's Border Security Force (BSF) was killed in an exchange of fire on India-Pakistan International Border at the Kashmir region, officials said Sunday. The ceasefire violation took place in Budhwar area of Suchetgarh sub-sector in R S Pora, around 45-km south of Jammu city, the winter capital of Indian-controlled Kashmir, the officials said. According to the available details, Pakistani Rangers resorted to heavy firing targeting forward BSF posts at Budhwar in Arnia sub sector killing a BSF personal. "Firing from Pakistan side continued for about 40 minutes. The BSF personal guarding the border retaliated, triggering an exchange of fire between two sides," Xinhua quoted an official as saying. The slain BSF personal was identified as Jai Kishan. The BSF officials are going to convene a flag meeting with Pakistani Rangers Sunday to discuss the issue. New Delhi and Islamabad in 2003 agreed to observe a ceasefire along the International Border and the Line of Control (LoC) in Kashmir. Though some violations have been reported on both sides, the ceasefire remains in effect. A guerrilla war is also going on between militants and the Indian troops stationed in Indian- controlled Kashmir over the past two decades. -NNI

No #17

Continued from page 1

Pakistan's sovereignty is being violated in exchange for dollars, he alarmed. -Agencies

www.asharys.net

For Subscription

Manager Circulation Ahmad Omer

1.Classic News Agency Abdul Mutalib Ph: 0333 -230 07 66 2. E-mail at subscribe@thefinancialdaily.com, 3.SMS us at 0322-260 2 838 4. Contact Phone: 35 31 18 93 - 6

Italian Kitchens Karachi

Lahore

tel: 92(21)5860794-5

tel: 92(42)5694061-2

Malik visits Pak Embassy in UAE

ISLAMABAD: Honourable Chief Justice of Pakistan Mr Justice Iftikhar Muhammad Chaudhry chairing the meeting of National Judicial Policy Making Committee (NJPMC) in Supreme Court building.-APP

Chief Justice chairs NJPMC meeting

Natâ&#x20AC;&#x2122;l Judicial Panel talks prison reforms ISLAMABAD: The National Judicial (Policy Making) Committee (NJPMC) met here Sunday and reviewed the statistics of jails; their capacity and the inmates presently confined in various prisons and observed that after implementation of National Judicial Policy, 2009, the problem of congestion in jails has been eased off. The 2-day meeting was held under the chairmanship of Chief Justice of Pakistan/Chairman, National Judicial Policy Making Committee Iftikhar Muhammad Chaudhry. The Committee was informed that prior to implementation of Judicial Policy there were 63000 prisoners in various jails of the Punjab Province, which was thrice the capacity of jails. However, after implementation of Judicial Policy and quick disposal of cases, the figure has been decreased to 52967. Similarly, in the Province of Sindh the population of jails inmates has been reduced from 20000 to 13464 which is a substantial reduction.

Likewise in other provinces, the population of jail inmates has also been decreased considerably due to timely disposal of their cases. The Committee was also informed that due to increase in disposal of cases by the courts not only the overall strength of prison inmates has reduced but also the number of convicts in prisons has considerably increased as compared to under-trial prisoners. The meeting was attended by Justice Agha Rafiq Ahmed Khan, Chief Justice Federal Shariah Court, Justice Qazi Faiz Isa, Chief Justice High Court of Balochistan, Justice Ejaz Afzal Khan, Chief Justice, Peshawar High Court, Justice Ijaz Ahmad Chaudhry, Chief Justice, Lahore High Court, Justice Musheer Alam, Chief Justice High Court of Sindh, Justice Iqbal Hameed ur Rehman, Chief Justice of Islamabad High Court and Registrars of the Supreme Court and High Courts. The Committee at length considered various issues related to administration of justice.

The Chief Justice of Pakistan asked the jail authorities to consider establishment of cottage industry in the jail premises for utilizing the skills of jail inmates. The Committee observed with concern that numbers of hepatitis cases were increasing in jails; therefore, it was resolved that the concerned authorities might be asked to carry out the exercise of screening of HIV Aids and Hepatitis cases so that the infected prisoners could be segregated from others. It was further observed that the Jail Manual provided remission in sentence of prisoners in lieu of blood donation and these blood bags were provided to blood banks/NGOs for transfusion. Non screened blood became a major cause of transmitting infectious diseases; therefore, the Committee resolved that hence forth no blood should be provided to blood bank without complete screening. The Committee appreciated that the District & Sessions See # 3 Page 11

Bloodshed on Israel border; 12 Arabs killed JERUSALEM: Deadly gunfire broke out on Sunday as Palestinian refugees across the region marched on Israel's borders in a mass show of mourning over the 1948 creation of the Jewish state. Israeli gunfire killed at least 12 people on the border with Lebanon as thousands of mainly Palestinian refugees demonstrated along the tense frontier, according to a Lebanese security official. And Israel's military said dozens of people were wounded when the army opened fire at "thousands" of protesters crossing from Syria into the Israeli-annexed Golan Heights. Among numerous rallies and demonstrations to mark the anniversary, clashes also broke out between stone-throwing Palestinian youths and Israeli

security forces, leaving nearly 80 injured. In northern Gaza, more than 1,000 Palestinians marched on the Erez border crossing, prompting troops to open fire, wounding at least 61 people, most of them minors. Hundreds of miles to the north, the Israeli army said thousands of protesters broke into the annexed Golan from the Syrian-held side of the disputed plateau, prompting troops to fire off live rounds and tear gas. Medical sources said between 10 and 20 people were wounded in what the army branded a "very serious and violent" incident. Four protesters died, according to media reports, but there was no immediate confirmation from officials. Violence also swept the

Lebanese border where thousands of Palestinian refugees were bussed to the border to protest the anniversary, although Israeli defence sources gave no immediate reports of gunfire. In the occupied Palestinian territories, Israeli gunfire wounded at least 78 Palestinians in a series of clashes, medics said. The vast majority were wounded in Gaza, where troops opened fire as more than 1,000 people marched on the towering concrete border fence, chanting: "No to the occupation!" and "Revolution, revolution to liberate Palestine!" Emergency services spokesman Adham Abu Selmiya said 61 people were wounded, including seven left in serious condition. See # 4 Page 11

Kahn innocent till proven guilty: French govt

IMF chief arrested in sexual assault WASHINGTON: New York police said early Sunday, the head of the International Monetary Fund has been charged with criminal sexual assault, attempted rape and unlawful imprisonment following a complaint by a hotel maid. New York police said 62year-old Dominique StraussKahn was apprehended while sitting on an Air France plane that was idle on the tarmac at JFK international airport before its takeoff to Paris. Police said he was not handcuffed, but taken off the plane and into custody, the Voice of

America reported. A 32-year-old maid told authorities she had entered his room earlier in the day at the Sofitel hotel near Manhattan's Time Square and that he had tried to sexually assault her. After she reported what had happened, she was taken to an area hospital. The Reuters news agency reports that an attorney for Strauss-Kahn says he will plead not guilty to the charges at an arraignment police say is expected later Sunday. The IMF in Washington says it has no comment on the case. In 2008, Strauss-Kahn, who

RIAZ NEWS AGENCY Cell # 0333-5373137

Monday, May 16, 2011

is married to a famous former French television newscaster, was investigated over whether he had an improper relationship with a subordinate employee from the fund's Africa division. An investigation board said his actions had been regrettable, and reflected a serious error in judgment, but also that the relationship had been consensual. But in the past few weeks, there had been repeated reports in French media criticizing him for what was considered an excessive and luxurious lifestyle in Washington. See # 5 Page 11

ABU DHABI: Interior Minister Rehman Malik visited the Embassy of Pakistan in Abu Dhabi and addressed the community and listened to their problems. The Interior Minister stated that expatriate Pakistanis are an asset for Pakistan. The Government is trying to solve their problems particularly with regard to issuance of Machine Readable Passports (MRPs). The backlog of delay in delivery of passports has now been cleared. He has initiated the process for the government to allocate funds in the next budget for installation of MRP printing machines in our Embassies, so that delivery of passports is quick. He said that he has sanctioned AED186,000 for the Embassy of Pakistan in Abu Dhabi to implement its plan to improve the services for the community. The possibility of sending mobile units during the weekends to far off areas of UAE, where there is sufficient number of Pakistanis. In order to motivate the staff, one month's salary will be given to MRP staff as a bonus. See # 2 Page 11

Bashir, UK under-Secy discuss ties ISLAMABAD: Permanent Under Secretary of the British Foreign and Commonwealth Office Simon Fraser met Foreign Secretary Salman Bashir Sunday here and held an in-depth exchange of views on bilateral, regional and global issues. The Foreign Secretary expressed satisfaction on the ongoing consultations between Pakistan and the UK and the elevation of the bilateral discussions to the enhanced Strategic Dialogue. The situation arising from the Abbottabad operation and the process leading to peace and reconciliation in Afghanistan, were also discussed. Under-Secretary Simon Fraser on the request of the Foreign Secretary will deliver a lecture on the subject of reengineering of British Foreign and Commonwealth Office and the concept of diplomatic excellence. -Agencies

Pak double crossing US, says Kabul WASHINGTON: US Ambassador to Afghanistan Zalmy Khalilzad has blamed that Pakistan is playing the game of double crossing with USA and now strategy of Pakistan is not tolerable as friend or foe. In an article published in New York Times Khalilzad said that US faces many problems regarding confidence over Pakistan. He blamed that Pakistan is providing assistance and arms to the extremists group in Afghanistan. He said that 2 point line of action may be adopted for eradication of terrorism under which Pakistan may be asked that why she gave shelter to Osama Bin Laden and then pressure may be exerted on her to root out network of Al Qaeda. "If Pakistan agrees on both points than USA may develop long-term relationship with her, but if she denies that USA ha to take action against Pakistan's duel policy. But first of all USA should lessen the dependability regarding supply line from Pakistan and it should build up alternate supply rout from Azerbaijan to Afghanistan instead of Pakistan. Secondly USA will have to train Afghan army for the See # 6 Page 11

Project to be completed in 20-month

Jabban power plant rehab to cost Rs3.7billion LAHORE: Pakistan Water and Power Development Authority (WAPDA) has initiated construction work on Jabban Hydropower Rehabilitation Project at a cost of Rs3.7 billion, which is scheduled to be completed in one year and nine months. AFD, a financial institution of France, is providing 25 million Euros for the project. Once rehabilitated 22-MW Jabban Hydropower Project will contribute 122 million units of electricity per annum. Wapda Chairman Shakil Durrani, speaking in a ceremony held at Jabban in Malakand Division of KhyberPakhtunkhwa province in connection with initiation of rehabilitation works on the project, said that Wapda is implementing a two-prong strategy for optimum utilization of the indigenous hydropower resources to cope with growing demand of electricity in the country. On one hand, Wapda is constructing a number of new hydropower projects on priority while on the other hand it is also engaged in executing refurbishment and rehabilita-

tion of its aged hydel power stations. This strategy will help improve the ratio of low-cost hydel electricity in the National Grid so as to stabilize the power tariff, he added. The Chairman said that hydel power projects with a cumulative generation capacity of more than 1400 MW are under construction, while work on 4500-MW Diamer Bhasha Dam - the largest project in the history of Pakistan - will soon be started. He said that consultancy agreement to carry out feasibility study for up-gradation of generating units of 1000-MW Mangla Power Station was awarded last month. The Chairman further said that selection of the consultants for rehabilitation and refurbishment of 243-MW Warsak Power Station is also under process. Wapda Member (Power) Muhammad Qasim Khan and other officers concerned also attended the ceremony. It is pertinent to mention that Jabban Hydropower Station was established in 1937 with a See # 1 Page 11

Mansha eyes major stake in Dubai bank DUBAI: Pakistan's richest man, Mian Muhammed Mansha, is hoping to buy a majority stake in a Dubai-based bank within the next two or three years. Mansha said that he is already in contact with groups over plans to take a majority stake in the bank. The businessman is chairman of Muslim Commercial Bank (MCB), Pakistan's largest lender by market value, in which the Nishat Group conglomerate holds a majority stake. "I would prefer to go through the acquisition route, although it has many pitfalls. I think there will be many institutions which need help in Dubai," Mansha told Arabian Business. "My idea is always to take a majority stake but initially, we could even take a minority

stake with an agreement with the sponsor that we would ultimately take a majority step. So it could be a two-step or onestep process. But we are on the lookout, yes. "I think it should happen in the next two or three years, because we are already in contact with certain people in this market," he added. Mansha also said that he was also considering setting up a banking operation in Iraq. However, the businessman indicated that the proposed acquisition of Abu Dhabi Group's 21 percent stake in Pakistan's United Bank had fallen through. "There were considerations that it might raise some controversy, as it was the second and the third biggest bank together, and that it was too large," he said. See # 7 Page 11

UAE allots $100mn for Pak projects ISLAMABAD: The United Arab Emirates (UAE) has allocated $100 million dollars to Pakistan for the construction of more than 51 schools (primary & secondary), technical institutions, several healthcare centres, building roads and bridges, infrastructure and supply of safe drinking water schemes, the UAE embassy has said. The money has been allocated on the special instructions of President of the United Arab Emirates Sheikh Khalifa bin Zayed Al Nahyan to the people of Swat, South Waziristan, other North Western districts and the tribal area. The construction of such projects is in

progress. During the devastating floods in Pakistan last year, UAE Armed Forces successfully carried out grand operations of rescue, distribution of relief goods, and logistics to different parts of Pakistan. Chinooks rigorously participated in the humanitarian assistance activities in the most flood affected regions of Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan. UAE Military Field Hospitals in many remote areas of the country treated thousands of affected and launched effective vaccination campaigns to save children, women and elderly See # 8 Page 11

SHAKIL NEWS AGENCY Cell # 0333-4400472

PML-Q minister Ameer Muqam resigns ISLAMABAD: Provincial President of PML(Q) KhyberPakhtunkhwa and Member National Assembly Engineer Ameer Muqam has tendered his resignation form the post of federal minister. President Asif Zardari, President of PML (Q) Chaudhry Shujat Hussain and Senior Minister Chaudhry Pervez Elahi could not convince him to take the resignation back. Engineer Ameer Muqam was not happy over the deal between PPP and PML (Q) under which the latter joined the government alliance. Earlier during the meeting of general council of PML (Q) Khyber-Pakhtunkhwa he had given deadline of one week to the leadership of his party that the written agreement between PPP and PML (Q) should be publicised. But the leadership of PML (Q) has failed to remove his apprehension and after expiry of time limit, he sent his resignation as federal minister to the party head of PML (Q) Chaudhry Shujaat. While talking to Online Engineer Ameer Muqam said that he submitted the resignation only as a federal minister and not from the party as he is still provincial president of PML (Q). He said that President of PML (Q) Chaudhry Shujaat Hussain, Senior Minister Chaudhry Pervez Elahi, Mushahid Hussain Syed and even President Asif Zardari met him and tried to convince him. "I told them that it was the decision of general council and I will not take my decision back until the apprehensions of PML (Q) leaders of KP and FATA would not be removed. He said that ministry was not his issue and I will remain loyal to my party", Ameer Muqam added. -Online

OBL dead: Pak stops info sharing with West LONDON: Pakistan's intelligence services are refusing to share details of suspects or plots with their American counterparts in protest at the US operation to kill Osama bin Laden, raising the potential threat of attacks on Western cities, according to Telegraph. In the past, Pakistani agents have been credited with helping identify targets for drone strikes and providing data to the CIA on plans being hatched in its lawless tribal areas. Now buffeted and embarrassed by being kept in the dark for months as the US closed in on the al Qaeda leader's bolthole, little more than 30 miles from the Pakistani capital Islamabad, agents with the Inter-Services Intelligence directorate have begun to withhold crucial operational details about militants on its territory. At the same time, new details have emerged about bin Laden's extensive support network inside Pakistan, reaching all the way to the sprawling port city of Karachi. The revelations will heap more pressure on to an administration already accused of helping shelter the world's most wanted man. The Sunday Telegraph has learned that the ISI, which prides itself on arresting a series of key terrorists including the 9/11 mastermind Khalid Sheikh Mohammed, has now broken off relations with the Central Intelligence Agency. -Online

Printed & Published by Amir Abbas Ashary at DRC Printing Press for Data Research Communication (PVT) LTD, 111-C, Jami Commercial Phase VII, DHA Karachi.