thefinancialdaily-epaper-17-06-2011

International Karachi, Friday, June 17, 2011, Rajab-ul-Murajjab 14, Price Rs12 Pages 12

Every soldier is ready to defend Pak: Kayani $17.52bn 14.00% $22.45bn $36.55bn $(14.11)bn $748mn $10.10bn $1.74bn Rs 1147bn $59.54bn Rs 5617bn $649.9mn 6.75% 4.10% $1,051 176.33mn

Foreign Debt (Mar 11) Domestic Debt (Apr 11) Repatriated Profit (Jul- Apr 11) LSM Growth (Mar 11)

GDP Growth FY10E Per Capita Income FY10 Population

247.27 2.25 -2.35 2836

Total Portfolio Invest (28-May-2011)

ISLAMABAD: President Asif Ali Zardari in a meeting with Commander National Guards of Bahrain Lt. Gen. Sheikh Mohammad Bin Isa Bin Salman Al-Khalifa at the Aiwan-e-Sadr.-APP

(U.S $ in million)

FIPI (16-Jun-2011) Local Companies (16-Jun-2011) Banks / DFI (16-Jun-2011) Mutual Funds (16-Jun-2011) NBFC (16-Jun-2011) Local Investors (16-Jun-2011) Other Organization (16-Jun-2011)

-0.21 1.01 2.82 -1.18 -0.55 -1.76 -0.13

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

Close 12369.12 9411.28 21953.11 17985.88 2761.48 2664.28 5698.81 11980.33

Change 51.97 163.04 390.66 146.36 17.84 41.15 43.74 83.06

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

$.Price PKR/Shares 2.60 111.45 17.50 150.03 2.00 42.87 1.70 36.44 11.13 38.17

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)

15-Jun-2011 15-Jun-2011 15-Jun-2011 20-May-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011

13.47% 13.71% 13.88% 14.00% 13.56% 13.54% 13.77% 14.12% 14.24% 13.98% 14.02% 14.07% 14.30% 14.52% 14.83%

Commodities *Crude Oil (brent)$/bbl 113.76 *Crude Oil (WTI)$/bbl 94.72 *Cotton $/lb 120.91 *Gold $/ozs 1,527.40 *Silver $/ozs 35.39 Malaysian Palm $ 1,053 GOLD (NCEL) PKR 42,395 KHI Cotton 40Kg PKR 9,109 Open Mkt Currency Rates Symbols Buy (Rs) Sell (Rs)

Australian $ 90.30 Canadian $ 87.30 Danish Krone 16.30 Euro 121.30 Hong Kong $ 10.80 Japanese Yen 1.044 Saudi Riyal 22.88 Singapore $ 68.90 Swedish Korona 13.55 Swiss Franc 97.50 U.A.E Dirham 23.38 UK Pound 139.00 US $ 86.05

91.30 88.30 16.70 123.00 11.30 1.071 23.08 69.90 13.90 98.50 23.58 141.00 86.35

Inter-Bank Currency Rates Symbols

Australian $ Canadian $ Danish Krone Euro Hong Kong $ Japanese Yen Saudi Riyal Singapore $ Swedish Korona Swiss Franc U.A.E Dirham UK Pound US $

Buying

Selling

TT Clean

TT & OD

90.60 87.44 16.30 121.55 10.99 1.057 22.83 69.13 13.23 100.35 23.31 138.89 85.73

90.82 87.64 16.33 121.83 11.01 1.060 22.88 69.29 13.26 100.58 23.36 139.21 85.92

Weather Forecast Cities

Islamabad Karachi Lahore Faisalabad Quetta Rawalpindi

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28°C 29°C 28°C 29°C 17°C 27°C

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See on Page 12

Says will lead body after Chief Justice's approval Firdaus says consultation with CJP not needed

SCRA(U.S $ in million)

NCCPL

See on Page 12

US says ties with Pak hard but firm

Justice Nisar says no to Commission

Portfolio Investment Yearly(Jul, 2010 up to 15-Jun-2011) Monthly(May, 2011 up to 15-Jun-2011) Daily (15-Jun-2011)

See on Page 12

7 more ministrie to provinces soon

Government forms 5-man commission

Economic Indicators Forex Reserves (11-June-11) Inflation CPI% (Jul 10-May 11) Exports (Jul 10-May 11) Imports (Jul 10 - May 11) Trade Balance (Jul 10 - May 11) Current A/C (Jul 10- Apr 11) Remittances (Jul 10 - May 11) Foreign Invest (Jul 10-May 11) Revenue (Jul 10 Apr 11)

5 dead as militants attack Bajaur town

PAC asks for govt audit of an NGO ISLAMABAD: Public Accounts Committee on Thursday directed Ministry of Local Government and Rural Development for the financial audit of National Rural Support Programme (NRSP).

The audit was not conducted earlier by NRSP management on the plea that it was a NonGovernmental Organization (NGO) which needs no audit by the government.

The PAC observed the government was providing bil-

Malik urges effective Pak-India liaison TFD Monitoring BEIJING: On the sidelines of the SCO Summit, Pakistan has called for effective communication with neighbouring India.

Interior minister Rehman Malik says it's important that both nations contribute equally, to the improvement of political and cultural ties. Expressing grief over the deadly 2008 Mumbai attacks, he added that Pakistan felt the same pain and agony as India did.

See # 12 Page 11

PSB official killed in Quetta QUETTA: Deputy Director Pakistan Sports Board (PSB) Boxer Syed Abrar Hussain was gunned down in Quetta on Thursday.

Sources said that unknown assailants opened indiscriminate fire on Deputy Director PSB Syed Abrar Hussain when he was on his way to home See # 13 Page 11

Babar to go to SC against Rana ISLAMABAD: Former Federal Law Minister and senior leader of PPP Babar Awan has announced to approach the Supreme Court over the statement of Rana Sanaullah, Punjab Law Minister saying that threats, conspiracy and force cannot keep him away from the people of Punjab.

Talking to media persons here on Thursday, Babar Awan said it has See # 14 Page 11

lions of rupees to the National Rural Support Programme (NRSP) for community development projects across the country; however, the audit department was denied access to its financial affairs.

It said the Auditor General of Pakistan had the mandate to scrutinise spending of the public money, whether through government or private sector organisations.

See # 9 Page 11

Zawahiri, chosen as Qaeda chief DOHA: Al Qaeda has named Ayman al-Zawahiri as its new chief following the killing of Osama bin Laden, the group has said in a statement.

The Egyptian surgeon was al Qaeda's number two for more than a decade and was widely expected to take on the top role when bin Laden was shot dead

by US Navy Seals in Pakistan "The general command of al Qaeda announces, after See # 7 Page 11

PC gets 3 offers for 88pc sale of HEC ISLAMABAD: The Privatisation Commission (PC) has received three expressions of interest (EOI) for the privatisation of 88 per cent shares of Heavy Electrical Corporation (HEC) on as-is-where-is basis while 12 per cent shares are allocated for employees of HEC through Benazir Employees Stock Option Scheme (BESOS).

The request for statement of qualification (RSOQ) has been dispatched to the parties who have submitted EOIs to form the basis of pre-qualification,

which will be received latest by July 02, 2011.

Information memorandum, bid documents and timeframe for the pre-bid conference and bidding date will be provided to pre-qualified parties only.

The three parties include Niagara Mills (Pvt) Ltd Faisalabad, AREVA T&D Pakistan (Pvt) Ltd Karachi and ALSTOM Grid Pakistan (Pvt) Ltd France. The successful bidder shall continue to operate company's manufacturing facility as going concern.

See # 10 Page 11

ISLAMABAD: Justice Saqib Nisar Thursday refused to head the Judicial Commission -set up to probe Saleem Shehzad murder - citing the reason that he was not consulted before his appointment as head of the investigation commission.

Justice Nisar said that will be willing to lead the Commission after approval from the Chief Justice of Pakistan.

Justice Nisar said that appointment of judges to form a commission was at the discretion of the chief justice, added the CJP was not consulted over the formation of the commission and his approval was necessary for any judge to head or become member of a commission.

According to the notification issued by the government, Supreme Court judge Justice Saqib Nisar would head the five-member commission tasked to investigate kidnapping and death of journalist Saleem Shahzad.

Kashmir top-topic in India talks: Pak ISLAMABAD: The issue of Jammu & Kashmir and confidence building measures would be on top of the agenda of Foreign Secretary-level talks between Indian and Pakistan later this month.

Foreign Office Spokesperson Tehmina Janjua told the media in her weekly briefing that the relevant officials of the two countries were working on finalizing dates for talks See # 11 Page 11

Meanwhile, the government announced the formation of a Judicial Commission headed Justice Saqib Nisar to investigate the murder of journalist Saleem Shahzad.

The announcement of the commission comes after a 24hour protest by journalists in front of Parliament.

Many Parliamentarians, leaders and office-bearers of political parties and members of civil society groups expressed their solidarity with the journalists.

According to a notification issued by the Ministry of Law and Justice, a commission headed by Justice Saqib Nisar, a sitting judge of the Supreme Court has been appointed to ascertain the cause and circumstances leading to the murder of Saleem Shahzad.

Consequently, the journalists decided to end the protest following the announcement.

The commission would consist of Justice Agha Rafiq

Ahmed Khan Chief Justice of Federal Shariat Court, Additional Inspector General (Investigation) Punjab, President Federal Union of Journalist (PFUJ) and Deputy Inspector General of Police Islamabad.

The commission would inquire into the background and circumstances of abduction and subsequent murder of Saleem Shahzad, according to the notification.

The commission would identify the culprit(s) involved in the abduction and subsequent murder of the said journalist and recommend measures to prevent recurrence of such gruesome incidents against journalists in future.

According to the notification, the commission would immediately start inquiry at a place fixed by it and would submit its report, findings and recommendations within six weeks.

See # 6 Page 11

NICL scam case

Contempt notices to 3 fed secretaries ISLAMABAD: The Supreme Court on Thursday issued contempt of court notices to interior secretary Qamar Zaman Chaudhry, establishment secretary Abdul Rauf Chaudhry and Khushnood Lashari Principal Secretary to the Prime Minister under section 17 of the contempt of court law in the multibillion-rupee corruption in the National Insurance Company Limited (NICL) case.

They have been asked as to why Additional DG FIA Zafar Qureshi, who was an investiga-

tion officer in National Insurance Corporation Limited (NICL) scam, was quickly transferred on verbal orders.

A three-member bench of the Supreme Court headed by Chief Justice Iftikhar Muhammad Chaudhry was hearing the contempt of court matter against former DG FIA Malik Iqbal.

Malik Iqbal was charged with contempt of court for transferring Zafar Qureshi on June 08 and the court reserved the verdict for June 16.

See # 8 Page 11

2

Friday, June 17, 2011

Exide Pak declares 25pc bonus KARACHI: Exide Pakistan has posted a record profit after tax of Rs 276.390 million for the year ending March 31, 2011 and declared a final cash dividend of Rs 6 per share and 25 percent bonus.

According to financial results of the company dispatched to Karachi Stock Exchange on Thursday, the pre-tax profit also surged to Rs 429.726 million for the period under review against Rs 303.554 million last year.

The earning per share was also high at Rs 48.92 during the period under review compared to Rs 34.92 in 2010.

Exide's sales stood at more than Rs 7.711 billion during the year as against Rs 6.189 billion last year. -APP

FUUAST suspends exams till 18th KARACHI: The teaching and examinations at the Gulshan-e-Iqbal Campus of the Federal Urdu University for Arts, Science and Technology (FUUAST) will remain suspended till June 18.

This was announced by the Registrar of the FUUAST, Prof Dr Qamar ul Haq, on Thursday.

He further stated that there would no public dealing either during the period. The Registrar said that this is being done owing to the unavoidable situation at the Campus. -APP

Group of Parliamentarians call on Gilani

PM approves Rs1bn for bridge over Indus ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani Thursday approved an additional fund of Rs one billion for the construction of Khushal Garh Bridge over Indus River.

Talking to a group of Parliamentarians, Prime Minister Gilani said his government accords priority to completion of communication linkages across the country for speedy transfer of goods and services, besides generating economic activity and creating job opportunities in the underdeveloped areas of the country.

Talking to parliamentarians, Senator Abbas Khan Afridi, MNA Sumaira Malik and PML (N) MNA Muhammad Junaid Anwar Chaudhry, Prime Minister Gilani said political dialogue, decency and accommodation of other's point of view were essential to strengthen the democratic institutions and promotion of democratic culture in the society.

He pointed that it was second time after Shaheed Zulfikar Ali Bhutto's government when any democratically elected government has been able to present its fourth budget in the National Assembly.

"It was because of the government's reconciliatory as well as democratic policies and

practices," he said.

Talking to Senator Abbas Khan Afridi, the Prime Minister approved the Rs one billion additional fund to meet the shortfall for construction of the Khushal Garh Bridge. He said the government was working on the possibilities for setting up of medium and small industry through private, public partnership in the Federally Administered Tribal Areas, with an objective of bringing prosperity.

Prime Minister Gilani said completion of Ghulam Khan Road connecting southern

areas of the Khyber Pakhtunkhwa with Afghanistan would also open new opportunities for promotion of trade.

Senator Abbas Khan Afridi apprised the Prime Minister about the progress of development projects launched by the federal government in Fata.

He requested before the Prime Minister to expedite the process for establishment of IT Universities and Cadet Colleges already announced by him.

The Senator also discussed the possibility of enhancement

Dawlance cut prices KARACHI: Dawlance, the no 1 home appliances brand of Pakistan has decided to offer reduced post-budget prices with immediate effect.

As per the budget 201112, the government has provided some relief in terms of sales tax and excise tax on home appliances.

The relief will lead to reduced prices of home appliances which are applicable from July 1st 2011 onwards.

Yet again proving their reliability, the largest home appliances manufacturer has extended this reduction in taxes through their extensive dealer network to their consumers with immediate effect.

Dawlance has always taken care of the needs of its consumers and is one of the most promising companies in the country.

This step has been taken to not only facilitate the consumers but also to set a positive trend in the market. Customers can now avail lower prices. -PR

ISLAMABAD: Federal Minister for Housing and Works Makhdoom Syed Faisal Saleh Hayat said that the Government was working for 'Housing for All Program' under Prime Minister's directive.

The Minister expressed these views while presiding over a meeting held here to review the progress of the housing scheme launched by Pakistan Housing Authority (PHA), in various parts of the country. Syed Faisal Saleh Hayat asked the Authority to benefit from modern technologies in housing projects which would not only bring down the cost of the housing units but also upgrade their standards.

He directed the authority to gear up efforts for launching more low cost housing schemes across the country.

Faisal Saleh Hayat appreciated the endeavors of PHA for making the Prime Minister's housing programme successful despite limited resources.APP

KARACHI: (L-R) Ahmed Kapadia, Managing Director, Synergy Group of Companies, Nawab sb, Director, Mandviwalla Entertainment and Nadeem mandviwalla, Managing Director, Mandviwalla Entertainment are present at the premiere of the movie ‘X-Men: Firest Class’. -Staff Photo

ISLAMABAD: Students posing for a group photo during the prize distribution ceremony of Case. -Online

of quota in the Engineering and Medical Colleges for students belonging to tribal areas. MNA Sumaira Malik called on the Prime Minister and invited him to visit Khushab for inauguration of development schemes launched by the federal government.

She asked the Prime Minister to direct the concerned departments for early release of funds earmarked for supply of gas and electricity in her constituency. She also discussed development projects of her constituency.

MNA belonging to PML (N) Muhammad Junaid Anwar Chaudhry called on the Prime Minister and expressed his gratitude for allocation of funds to all the Parliamentarians irrespective of their Party affiliation. He requested before the Prime Minister to allocate special fund for the construction of Khikar Road connecting Toba Tek Singh with Pir Mahal.

The Parliamentarians also discussed the overall political situation during their meetings with the Prime Minister. -APP

Fakt plans trade fairs in Pakistan KARACHI: Fakt Exhibitions (Pvt) Ltd launched Int'l Build Pakistan, Int'l IITEC Pakistan, Int'l EGO Pakistan and Int'l Fire, Safety, Security & Rescue Pakistan Exhibitions and Conferences for 2012 to be held at Lahore Expo Centre -Pakistan.

At the briefing, Saleem Khan Tanoli, CEO of Fakt Exhibitions said that "Fakt Exhibitions is founded with the principal objective of building bridges among Pakistan and International countries by promoting commerce, trade and business through its corporate exhibitions and conferences." He also said that Fakt Exhibitions recognises the need of trade and commerce among different industrial sectors and therefore it has planned to

organise seven events including the four new events in 2012 which will cater the major industries of Pakistan.

He explained the motive of each of the new event by telling that International Building & Construction Materials, Furniture, Property, Stone and Technology Exhibition & Conference from March 10 - 12, 2012 will highlight the immense potential of Building and Construction Industry in Pakistan.

The event is supported

by Pakistan Industrial Development Corp., Pakis-tan Council of Scientific & Industrial Research (PCSIR), Pakistan Stone Development Company, All Pakistan Marble Industries Association (APMIA) and All Pakistan Furniture Exporters Association (APFEA). -NNI

Karachi unrest: 40 people killed in 4 days

LEAs given freehand to restore peace Coalition parties announce to compensate families Staff Reporter/ Agencies

KARACHI: Governor Sindh Dr Ishrat-ul Ebad Khan would be the chief guest at the opening ceremony of 18th SITE Eid Bachat Bazaar on 5th August 2011.

Abdul Wahab Lakhani, Chairman SITE Association of Industry thanked the Governor Sindh for accepting the invitation to inaugurate the event in spite of his busy schedule keeping the interest of general public above all the things and hoped that the government would try its best to maintain the law & order situation in this commercial hub during the Holy month of Ramadan as well as the Eid-ul-Fitr.-PR

Ufone wins CSI Award

Hayat reviews PM Housing projects

KARACHI: The Sindh government has given a free hand to the Rangers and police to launch a large scale operation against miscreants and criminals who are playing with the lives of innocent and made the mega city their hostage, to restore law and order In the meantime the coalition parties have decided to compensate the families of victims of target killing incidents.

The decision came in the meeting of Coordination Committee of coalition parties held at Governor House here on Thursday.

Chief Minister Syed Qaim Ali Shah was also present in the meeting. The meeting was attended by representatives of Pakistan People Party (PPP), Muttahida Qaumi Movement (MQM) and Awami National Party (ANP).

According to Sindh government sources free hand has been given to the Rangers and police to launch citywide operation and apprehend the anti-social elements to maintain law and order. During the meeting the three coalition partners agreed to make concerted efforts to restore peace in Karachi. The meeting also urged the law enforcement agencies to take strict action against the accused involved in target killings in the metropolis without differentiating

Ebad to open SITE Eid Bazar

HRCP concerns over Khi affairs LAHORE: The Human Rights Commission of Pakistan (HRCP) has expressed deep concerns over the loss of life in the latest upsurge of violence in Karachi.

Criticising the government's failure to ensure security for life, the HRCP has called for measures that reflect the urgency according to the situation in order to find a lasting solution to the bloodletting in the port city.

A statement issued by the Commission on Thursday said: "Another cycle of the now familiar violence has erupted in Karachi. Karachi is no stranger to violence or the absence of law and order. However, it is scandalous that the alarm and indignation that such a heavy toll on human lives should evoke is absent." HRCP has deep concern over the continued loss of life caused by exploitation of ethnic differences by the political parties. It is sadder still that the solution to the strife in Karachi is seen only in the context of retaining coalition partners, and not as a tragedy of human lives being lost every day. The people are justified in asking who is looking after their concerns.

HRCP calls upon the government to use every resource at its disposal to prevent denial of the right of life to the people and end impunity for the perpetrators." -NNI

their political affiliations. The representatives of coalition parties also agreed to avoid issuing provocative statements against one another. It was a consensus of opinion in the meeting that the three coalition partners would cooperate in action against miscreants in Karachi, a source present in the meeting told INP. The Coordination Committee meeting also decided to remove flags of political parties and wall chalking from the government buildings. The meeting decided that action would be taken against land mafia and weapon mafia across the city; who were considered as the persons being gory incidents. Meanwhile, at least five persons were killed in fresh spate of target killing related violent incidents in different localities of the city. The death toll in the four day violent incidents has now reached 40.

Orangi Town and Qasba Colony areas where most of the deaths occurred during last four days were still tense and in the grip of uncertainty while firing incidents continued in the these areas. The police officials said that due to shortage of law enforcement personnel they were facing difficulties in stabilizing the situation in Orangi Town and Qasba Colony. However they hoped that the situation would come to normal as more contingents of police have been called in to deal with the situation.

ISLAMABAD: Ufone, the leader in innovation and the best telecom brand in Pakistan was recently bestowed the best advertising campaign award 20102011 by the Pakistan Advertising society (PAS).

This award has soon been followed by the Customer Services Innovation Award, under the Consumer Service Innovation category received at the Global Telecom Business Innovation Awards 2011.

The event was held in London at Hotel Sheraton and the award was received

by Ahmad Kamal, Chief Officer Customer Operations on behalf of Ufone.-PR

3

Friday, June 17, 2011

Euro falls as Greek woes escalate; more declines seen Greek debt turmoil deepens, prime minister pressured NEW YORK: The euro slid on Thursday as turmoil deepened in Greece and efforts to resolve the country's debt crisis remained elusive, though the euro pared losses after hitting a record low against the Swiss franc and a three-week low against the dollar.

The selling in the euro put it on course to drop below $1.40, analysts said, as yields on weaker euro-zone bonds surged, expanding their spreads against German Bunds to their widest ever.

The euro trimmed some of its losses against the dollar after a report showed factory activity in the US Mid-Atlantic region unexpectedly shrank in June, the second straight day that data showed signs of weakness in the manufacturing sector.

"It is certainly feeling like a durable downturn in the US, but the reality is the US economy is in a more stable position than its rivals," said Karl Schamotta, senior market strategist at Western Union B u s i n e s s Solutions, Victoria, British Columbia. "The situation in Europe is under-appreciated, and the US is set to outperform regardless of how negative things get.

The euro dropped to a lifetime low against the Swiss franc at 1.1946 francs on electronic trading platform EBS, before climbing back to 1.20363, down 0.5 per cent on the day.

Seen as a safe-haven currency, the franc brushed off statements by the Swiss National Bank expressing concern about its gains, as the bank gave no

sign of action that would stem the currency's upside.

Against the dollar, the euro fell to a session low of $1.4073 on EBS, its lowest since late May. It last traded at $1.41539 down 0.2 per cent.

The single currency has lost 3.6 pct since its June 7 peak.

Asian currencies

Euro jitters break supports; Jakarta tries to stem falls SINGAPORE: The Singapore dollar, the Malaysian ringgit and the Indonesian rupiah broke through key technical support lines on Thursday, implying further declines, as mounting worries about Greece's debt crisis dragged down emerging Asian currencies.

Investors cut their long bets on the Singapore dollar in June to the lowest level in a year and trimmed positions in the Chinese yuan to a 10-month low as they reduced exposure to riskier assets, a Reuters poll showed on Wednesday.

With expectations for further losses growing, regional policymakers are expected to step in foreign exchange markets to slow down falls in their currencies, analysts said.

Indonesia's central bank was spotted selling dollars and the South Korean foreign exchange authorities were suspected of unloading dollars, dealers said.

The Singapore dollar broke

through a 55-day moving average against the US dollar -- a level that has acted as a support all year.

The city-state's currency weakened past 1.2405 versus the greenback, the 55-day moving average, and also briefly breached 1.2428, the 61.8 per cent Fibonacci retracement level of its rises between late May and early June.

The rupiah also fell below its 55-day moving average on model funds' sales and dollarshort covering by interbank speculators.

The Indonesian currency weakened to as soft as 8,590 per dollar, breaking through the 55-day moving average of 8,586. But the central bank was spotted selling dollars to cap its falls, dealers said.

The won lost 0.6 per cent on supplies by offshore real money accounts and dollar demand-linked to foreign investors' stock sales.

The won softened to as weak

as 1,091.5, the 61.8 pct Fibonacci retracement level of its gains between late May and early June, as the euro lost ground. But it ended domestic trade at 1,089.9.

The baht suffered from dollar-short covering, weakening past the 50 per cent Fibonacci retracement of its strengthening trend between January and April.

The ringgit is working through an important strengthening line, which goes back to the lows of 2009.

The trend line, which came in at 3.0430 per dollar has now been broken. A break of this line a fortnight ago was not sustained, but on this occasion it appears that we will get a daily close weaker than the level, which should be bearish for the ringgit.

Next support is at 3.0610, the low of May 26 and 3.0630, a 200 day-moving average followed by 3.0690, the weakest in March. -Reuters

Sterling drops after poor retail sales data LONDON: Sterling slid to a three-week low against the dollar and lost some ground against the bruised euro on Thursday after UK retail sales disappointed and led investors to push back chances of a rate hike even further.

Investors are now pricing in a quarter percentage point rate hike by the Bank of England in June 2012, having factored in a first rate increase in April before the data was released. British retail sales fell more than twice as fast as expected in May, reversing the previous month's gains as worries about the economy led consumers to cut back sharply after a Royal Wedding-related splurge in April. Retail sales fell 1.4 per cent in May, compared to economists'

expectations of a 0.6 per cent decline.

Some in the market had speculated about a rise, boosted by the possible inclusion of Olympic ticket sales, but the data poured cold water on those expectations.

Sterling then dropped to a three-week low of $1.6099,

its weakest since May 24 when it fell to $1.6055. It has shed more than 2.5 per cent against the US dollar this month, retreating from its May 31 high of $1.6547.

Sterling had came under pressure as a loss of risk appetite swept financial markets, with the euro's broad losses also adding to the

downward pressure on the pound.

Its near term prospects were also hurt by Bank of England Governor Mervyn King, who reiterated the case for ultralow interest rates despite stubbornly high inflation.

That bolstered expectations that monetary tightening was still a long way off.

Against the euro, sterling was trading firmer.

The single currency fell broadly as risks of contagion from the Greek debt crisis led many investors to add to bearish bets against it.

The euro was last down 0.1 per cent at 87.45 pence, not far from a two-week low of 87.21 struck earlier in the session. It had risen to a session high of 87.81 pence after the retail sales data, but quickly gave up those gains. Reuters

Aussie & NZ dollars fall to 3-week lows WELLINGTON/SYDNEY: The Australian and New Zealand currencies slid to threeweek lows against a broadly firmer greenback on Thursday, as worries about Greece's debt crisis prompted investors to dump the euro and slash short US dollar positions.

The net result was a skid in the Australian dollar to $1.0520, down about 0.5 per cent on the day, extending Wednesday's 1.2 per cent slide. Support is seen at $1.0511, the 78.6 per cent retracement of the May 25 to June 3 rise.

A break below that would pave the way to the May 25 trough around $1.0439. The Aussie is now well off Wednesday's session high above $1.07 reached just after an upbeat speech from RBA Governor Glenn Stevens.

The Aussie fared better against other currencies, particularly on a sharply weaker

euro. The single currency was last at A$1.3407, having dropped to a two-week low around A$1.3367.

Against the kiwi, the Aussie reached a fresh one-week high at NZ$1.3168, before erasing most of the day's gains to last stand at NZ$1.3104.

The New Zealand dollar skidded to a low around $0.8002, continuing to retreat from a 26-year high near $0.8300 set a week ago. It is seen capped at $0.8116 in the short-term.

"Once again, it's Greece. That's all you need to know about the kiwi at the moment," said Derek Rankin of Rankin Treasury.

Investors largely ignored local data. In Australia, a survey showed industrial conditions deteriorated in the second quarter, while in New Zealand, consumer confidence and manufacturing activity rose. -Reuters

Violent protests in Athens against government austerity highlighted the political obstacles to a second bailout, with Prime Minister George Papandreou forced to reshuffle his cabinet to salvage his government after resignations by ruling party lawmakers.

The yen also rose due to its perceived safe-haven status, pushing the dollar down 0.4 per cent to 80.67 yen and driving the euro to a one-month low before it recovered to 114.20 yen, still down 0.5 per cent.

Investors are increasingly unsure whether an agreement on a Greek bailout plan will be reached in the near term. EU and banking sources told Reuters, Germany wants the deadline for a second rescue deal to be pushed back to September, highlighting the hurdles toward reaching a consensus. -Reuters

China's yuan hits record high in late trade SHANGHAI: The yuan ended at a record high versus the dollar on Thursday spurred by strong dollar sales in the late session after the foreign exchange regulator said China would make the yuan more flexible and warned of capital inflows.

The State Administrative of Foreign Exchange (SAFE) said in its annual report for 2010 that China will continue to make the yuan more flexible to better reflect market forces and diversify investment of the country's vast foreign reserves.

Dealers said the comments boosted expectations of further yuan appreciation and some expect the mid-point could be fixed at a new peak on Friday.

"The market already had strong expectations for further rises. SAFE's comment boosted this expectation in the afternoon," said a dealer at an European bank in Shanghai.

Dealers said they spotted the big banks selling dollars in the late afternoon.

The central bank has guided the yuan to a slew of record highs since the start of this year as it fights inflation.

Consumer prices climbed to a 34-month high in May, up 5.5

per cent from a year earlier, partly propelled by firm global commodity prices.

Spot yuan ended at a record high of 6.4744 per dollar against 6.4822 at Wednesday's close.

The Chinese currency has now appreciated 5.43 per cent since it was depegged from the dollar in June 2010, and 1.75 per cent since the start of this year.

Before trade began, the PBOC set the yuan's daily mid-point at 6.4803 versus the dollar, marginally weaker than Wednesday's 6.4796. The fixing was still only 8 pips shy of its record high of 6.4795 set by the central bank last week.

In an annual financial stability report published on the central bank's website, the PBOC said that further yuan exchange rate reform was helpful to curb inflation and asset bubbles.

Offshore, one-year dollar/yuan non-deliverable forwards were bid at 6.4000 in late trade, up slightly from Wednesday's close of 6.3900.

Their implied yuan appreciation in a year's time inched lower to 1.25 per cent from 1.41 per cent. -Reuters

Indian rupee falls; Greece crisis eclipses euro MUMBAI: The Indian rupee fell to a two-week low on Thursday hurt by weak local shares as well as Asian currencies and a slide in the euro as Greece's debt woes showed signs of deepening further.

The partially convertible rupee ended at 44.90/91 per dollar, 0.3 per cent weaker from Wednesday's close of 44.77/78, after falling as much as 44.95 -- a level not seen since June 2.

"Surprisingly, rupee has been holding on despite a host of negative global factors," said Ajay Mahajan, managing director and head of financial markets and institutional banking at UBS. "Maybe the market is underpricing the risk of adverse developments that could result from a possible (debt) default. We think rupee could see volatile times going ahead and a drift to 46.00-

46.50."

The rupee did not react sharply to the Reserve Bank of India's (RBI's) 25 basis points rate increase as it was on expected lines and was factored in, traders said.

The one-month onshore forward premium was at 24.25 points versus 25.50 at last close. The three-month was at 74.25 points from 78 and the one-year was at 251 points versus 268.75.

One-month offshore nondeliverable forward contracts were quoted at 45.15, weaker than the onshore spot rate.

In the currency futures market, the most traded nearmonth dollar-rupee contracts on the National Stock Exchange and the MCX-SX were each at 44.9875 and on the United Stock Exchange were at 44.9850, with total volume at $8.88 billion. Reuters

Top Economic Events Time

Source

14:00

EUR

Trade Balance

-2.0B

-0.9B

17:30

CAD

Wholesale Sales m/m

-0.2%

0.1%

18:55

USD

Prelim UoM Consumer Sentiment

74.4

74.3

18:55

USD

Prelim UoM Inflation Expectations

19:00

USD

CB Leading Index m/m

0.3%

-0.3%

Source

Events

Actual

Forecast

Previous

CNY CHF CHF GBP EUR EUR USD USD USD USD USD

CB Leading Index m/m Industrial Production q/q Libor Rate Retail Sales m/m CPI y/y Core CPI y/y Building Permits Unemployment Claims Current Account Housing Starts Philly Fed Manufacturing Index

Forecast

Previous

0.2% -9.2% 0.25% -1.4% 2.7% 1.5% 0.61M 414K -119B 0.56M -7.7

-7.5% 0.25% -0.5% 2.7% 1.6% 0.55M 421K -126B 0.54M 7.1

0.9% 7.7% 0.25% 1.1% 2.7% 1.6% 0.56M 430K -112B 0.54M 3.9

4.1%

Previous Day

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

As per 22.00 PST Ask High 1.4156 1.4204 0.8494 0.8550 1.6121 1.6223 0.9856 0.9872 1.0532 1.0591 114.20 114.95 0.8780 0.8780 1.2014 1.2126 130.14 131.30 95.14 95.19 1524.16 1531.00

Bid 1.4153 0.8490 1.6115 0.9850 1.0528 114.17 0.8776 1.2009 130.09 95.09 1523.13

Low 1.4093 0.8489 1.6098 0.9774 1.0510 113.66 0.8724 1.1990 129.87 94.53 1521.85

London Inter Bank Offered Rates (LIBOR) Karachi: The following are the London Inter-Bank Offered Rates (LIBOR).

British Members Association Interest Settlement Rates.

AT 11:00 LONDON TIME 16/06/2011 A USD GBP CAD EUR JPY O/N 0.12800 0.56688 0.98000 1.25750 SN 0.10594 1WK 0.16125 0.58938 1.01583 1.26413 0.11469 2WK 0.16950 0.59750 1.03917 1.26375 0.12219 1MO 0.18580 0.62750 1.08083 1.26063 0.14031 2MO 0.21750 0.70125 1.11875 1.31375 0.15844 3MO 0.24650 0.82500 1.18667 1.43750 0.19531 4MO 0.28675 0.89563 1.26167 1.51375 0.24156 5MO 0.34275 1.00063 1.32167 1.60625 0.29719 6MO 0.39500 1.10250 1.38167 1.70438 0.34156 7MO 0.45250 1.18625 1.46583 1.76925 0.39031 8MO 0.50775 1.27188 1.53500 1.83825 0.43719 9MO 0.56250 1.35563 1.60833 1.90688 0.48031 10MO 0.62075 1.43625 1.69292 1.97938 0.51031 11MO 0.67175 1.50750 1.78583 2.04188 0.53594 12MO 0.72725 1.57625 1.87833 2.11375 0.56000

Major Central Banks Overview Central Bank

Next Meeting

Last Change

Current Interest Rate

Bank of Canada

7/19/2011

9/8/2010

1%

Bank of England

7/7/2011

3/5/2009

0.50%

Bank of Japan

7/12/2011

12/19/2008

0.10% 1.25%

European Central Bank

7/7/2011

4/7/2011

Federal Reserve

6/22/2011

12/16/2008

Swiss National Bank

9/15/2011

3/12/2009

0.25%

The Reserve Bank of Australia

7/5/2011

11/2/2010

4.75%

0.25%

Division of National Bank of Pakistan (NBP) KARACHI, June 16,2011 Treasury Management Division of National Bank of Pakistan (NBP) Monday issued the following Exchange rates: Countries Selling Buying Buying TT & OD TT Clean OD/T.CHQ U.S.A. U.K. EURO CANADA SWITZERLAND AUSTRALIA SWEDEN JAPAN NORWAY SINGAPORE DENMARK SAUDI ARABIA HONG KONG KUWAIT MALAYSIA NEWZEALAND QATAR U.A.E. KR WON THAILAND

85.80 139.21 121.83 87.64 100.58 90.82 13.26 1.06 15.49 69.29 16.33 22.88 11.01 311.90 28.20 68.99 23.56 23.36 0.08 2.81

85.60 139.89 121.55 87.44 100.35 90.60 13.23 1.06 15.45 69.13 16.30 22.83 10.99 311.17 28.13 68.83 23.51 23.31 0.08 2.80

85.38 138.51 121.19 87.21 100.08 90.37 13.20 1.05 15.41 68.95 16.25 22.77 10.96 310.35 28.06 68.65 23.45 23.24 0.08 2.79

Revaluation Rates Treasury Bills / PIBs / FIBs Holding Applicable for June 16, 2011

KASB

BMA

ELXIR

GSL

ICSL

0-7days

13.00

13.10

13.05

13.10

13.10

13.15

13.08

8-15dys

13.15

13.15

13.15

13.10

13.15

13.20

13.15

16-30dys

13.20

13.12

13.25

13.15

13.30

13.25

13.21

31-60dys

13.30

13.28

13.32

13.20

13.40

13.25

13.29

61-90dys

13.40

13.39

13.40

13.41

13.42

13.40

13.40

91-120dys

13.48

13.46

13.47

13.55

13.45

13.50

13.49

121-180dys

13.68

13.68

13.70

13.68

13.69

13.70

13.69

181-270dys

13.70

13.69

13.75

13.75

13.68

13.75

13.72

271-365dys

13.85

13.86

13.84

13.85

13.85

13.86

13.85

2-- years

13.98

13.95

13.96

13.98

13.95

13.97

13.97

3-- years

13.99

13.98

13.97

13.99

13.98

13.98

13.98

4-- years

14.04

14.06

14.02

14.01

14.02

14.01

14.03

5-- years

14.05

14.03

14.03

14.00

14.00

14.01

14.02

6-- years

14.07

14.06

14.06

14.05

14.07

14.05

14.06

7-- years

14.07

14.05

14.06

14.08

14.07

14.05

14.06

8-- years

13.75

13.70

13.65

13.70

13.60

13.70

13.68

9-- years

14.08

14.06

14.07

14.07

14.08

14.05

14.07

10--years

14.08

14.06

14.07

14.07

14.06

14.06

14.07

15--years

14.30

14.30

14.30

14.32

14.27

14.30

14.30

20--years

13.55

14.50

14.51

14.52

14.50

14.50

14.35

30--years

13.85

14.90

14.81

14.80

14.80

14.80

14.66

Swiss franc hits record highs vs euro LONDON: The Swiss franc hit a record high against the euro on Thursday, shrugging off central bank concerns about franc strength and buoyed by demand for the safe haven currency due to growing concerns about euro-zone debt.

The euro fell more than one per cent on the day to hit a record low of 1.1957 francs on trading platform EBS, with traders saying losses had accelerated as stop loss orders were triggered on the break below 1.1970 francs. It failed to break lower, however, with traders saying there were bids at 1.1950 francs.

Events

One-month euro/Swiss implied volatility traded above 12.0 per cent, up from around 11.2 per cent on Wednesday. One-month risk reversals revealed an increasing demand for bets on euro losses versus the Swiss franc. The Swiss National Bank left interest rates unchanged, stressing risks to the economy from a strong franc, with Chairman Philipp Hildebrand expressing concerns about exporters' margins.

The Swiss franc also gained against the dollar, which was down 0.5 per cent at 0.8491 francs. -Reuters

JSCM AvgRate

4

Friday, June 17, 2011

The Financial Daily International Vol 4, Issue 225

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

Govt apathy, an obstacle Many Pakistanis often wonder why there has been dismal inflow of foreign investment in the country.

While one can draw a long list of the hurdles, the item on the top of the list is apathy of the Government of Pakistan. To begin with, no one seems to be taking decisions which can facilitate investment in the country. Especially, when a crisis appears, there are many ministries and departments to poke their nose and complicate the issue but none is ready to take a difficult decision.

At present the worst crisis facing the country is electricity and gas load-shedding. Everyone knows that without uninterrupted supply of energy products at affordable cost, country's economy can't operate efficiently. They also know the causes and the solutions but the decision-making is governed by the groups with vested interests.

Utilities are suffering because of rampant theft, gross inefficiencies and massive corruption but those at the helm of affairs say that due to inter-corporate debt issue utilities are not recovering the full cost. In fact they want the government to keep on paying the subsidies to these utilities so that they could continue to benefit. The justification for rental power plants was created by widening the gap between demand and supply. The sponsors were offered fabulous bulk power purchase rates and even dished out billion of rupees as advance.

The fact is that till today the contribution of RPPs remains less 100MW. As against this, payments to Hubco and Kapco have been delayed and the latest victims are four IPPs commencing generation recently as they are not been paid for the electricity they are supplying to Pepco, the holding company created to manage the corporatised entities of the Power Wing of Wapda.

Since Pepco is not discharging its legal responsibilities the IPPs have the right to call the 'Sovereign Guarantees' issued by the GoP. These guarantees were issued by the GoP to the sponsors of IPPs that in case Wapda (now Pepco) fails in discharging its liability the GoP stands the guarantor. May be the time has come for the IPPs to call these guarantees.

Some experts say that IPPs have been more than generous, they should have called these guarantee much earlier.

Another example of failure in meeting the contractual obligations by the GoP is curtailing gas supply to the fertilizer plants. The curtailment has increased with the passage of time. The GoP decision has turned the country capable of exporting urea, a net importer of the commodity. Import of urea not only erodes foreign exchange reserves of the country but also force the government to pay billions of rupees subsidy. The cost of imported urea is almost double the cost of locally produced one.

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.

Arab spring may leave oil firms unscathed W

estern oil firms are unlikely to face widespread asset seizures or contract revisions as a result of Arab uprisings, thanks to deft diplomacy, legal protections and efforts to depict themselves as partners of the local citizenry.

In the past, big political shifts in the Middle East have often been followed by the eviction of foreign oil producers Muammar Gaddafi in Libya, Saddam Hussein in Iraq and Ayatollah Khomeini in Iran to cite a few examples.

This time around, upheaval has hit Libya, Egypt, Yemen, Tunisia and Syria not the biggest oil producers in the Arab world but among the most open to foreign investment. Companies including BP Plc, Exxon Mobil and Royal Dutch Shell have spent billions there.

"I wouldn't describe us as worried.

We're being vigilant," said Bob Dudley, chief executive of BP, echoing comments from other companies.

The new governments that have emerged, or may emerge, are expected by and large to remain supportive of foreign investment, because they will wish to maintain output and government revenues.

"I don't see there being a large nationalistic wave," said Richard Quin, Middle East analyst at Wood Mackenzie.

In the past popular anger toward a regime has spilled over to the companies that supported it, but oil companies

say that over the past two decades, they have positioned themselves on the side of communities, rather than as agents of government.

"Companies now are not so closely aligned with governments," said Mahdi Sajjad, president of Syria-focussed Gulfsands Petroleum, whose shares have been hit by investor fears about the unrest.

In part this has been achieved by investing in community engagement projects. Oil contracts that are more transparent and more favourable towards host nations also play a big role.

CONTRACT CHANGES Up to the 1970s, oil contracts were opaque and seen as beneficial to companies and the region's frequently corrupt governments -- at the expense of citizens. Now contracts usually follow internationally accepted models.

This will help oil executives argue they are giving host nations the best deal that a new leadership could hope to get and, therefore, that existing contracts should be respected.

"We look at it (investment) from a perspective of the fundamental stakeholders, the population of the country, rather than through the lens of the current incumbent government," said Frank Chapman, chief executive of British Gas producer BG Group.

"What we are doing in Tunisia and Egypt is sustainable," he added.

Oil companies have beaten a path to new leaders in Egypt and Tunisia, and, an Italian ministerial source told Reuters last month, even to Libyan rebel leaders. Companies say the signals received so far do not point to widespread asset seizures.

If new governments do seek to expropriate oil fields or to rewrite contracts, companies will find they have greater legal protection than they did when the last wave of nationalisation swept through the Arab world in the 1970s.

Modern contracts bar governments from taking unilateral action to seize assets and can limit their ability to hike taxes. And if there is a dispute over whether the government has overstepped its authority, companies don't have to worry about arguing their cases in front of potentially biased local courts.

"Contracts usually provide for arbitration in a neutral venue," Anthony Sinclair, a partner with law firm Allen & Overy said.

POTENTIAL LOSSES In addition, many countries have signed bilateral investment treaties, known as BITs, which commit them to protect foreign investments in their territories.

"There are close to 3,000 of these treaties in existence," Sinclair said.

These will help deter unilateral moves against companies, but they will not protect companies against all losses.

International litigation can drag on for decades, during which opportunities are lost, said Harry Clark, partner at Dewey & LeBoeuf. This suggests companies might agree to unfavourable contract changes that would not be upheld in court.

Also oil companies can face a big financial hit if instability delays production.

"The oil industry values everything in net present value terms ... (and) because you are pushing things out, on a discounted cash flow basis, that will erode value," said Quin.

BP and other companies have suspended operations in Libya, while French oil major Total said it lost production at one field in Yemen due to the conflict there.

Sajjad said Gulfsands' operations in Syria were unaffected, but the conflict could create difficulties in importing equipment there and in other countries especially if new sanctions are imposed against governments fighting revolts.

There is little companies can do to limit such losses.

Yet some executives say the problems thrown up by the Arab Spring simply reflect the intrinsic nature of the oil business.

"It is always like that in exploration, you can always face different kinds of issues. This is part of life for an oil and gas company," said Total head of strategy Jean-Jacques Mosconi. -Reuters

Fitch offers ECB way out R

atings agency Fitch has opened the door to a possible compromise deal on Greece's debt crisis that would allow the European Central Bank to continue accepting Greek bonds as collateral in its funding operations.

The ECB is proving a major stumbling block in agreeing a second rescue plan for Greece as it has threatened to refuse to accept restructured Greek bonds as collateral in its lending operations in the event of a default or a "restricted default".

Such a scenario would cut off funding to much of Greece's financial sector, risking a destabilising chain reaction to banks across the euro zone.

The ECB's stance severely restricts the options for organising private bondholder involvement in a new rescue plan for Greece -- a key consideration for Germany, which is facing domestic pressure to involve the private sector in the cost.

Fitch offered a potential solution on Wednesday, saying that under a Viennatype initiative for Greece; it would temporarily downgrade Greece's 'Issuer Default Rating' to 'restricted default' but keep the government bonds at 'CCC'.

Under the "Vienna Initiative" for central and Eastern Europe, international

lenders agreed in 2009 to boost credit to the region and the main commercial banks in turn committed to maintain exposure and roll over credit lines.

'CCC' is a non-investment grade, but this of itself does not necessarily present a barrier to the ECB accepting such bonds as collateral, rather under the current procedure it simply charges an additional 5-percent haircut on the bonds' value. The problem that ECB policymakers have pointed to is with Greek bonds themselves being rated 'default' or 'restricted default', and maintaining at least one 'CCC' rating could avoid this situation and potentially allow the ECB to continue to accept them as collateral.

"If one of the rating agencies continues to rate Greek debt as eligible for collateral even if some voluntary rollover is done, it would help a lot to sort out their problem," said Berenberg Bank economist Holger Schmieding.

"Then the ECB would not have to bend its own rules -- especially Trichet would not have to take back what he said: namely no selective default."

ECB President Jean-Claude Trichet last week stressed that the bank opposes debt restructuring, which it worries could trigger another Lehman-type crisis in the euro zone, pushing up bond yields

for countries such as Spain.

"We exclude all concepts which would not be purely voluntary, without any elements of compulsion. We call for avoiding any credit event and selective default, say. And of course, default," Trichet hold a news conference.

However, another senior ECB policymaker, Lorenzo Bini Smaghi, said on Wednesday the ECB continuously examines the collateral it considers eligible for its lending operations -- a comment that may suggest some room for compromise by the ECB. "I would like to emphasise that our collateral eligibility and risk control framework is continually reviewed," he said.

BIGGER PROBLEM While such a compromise deal may allow Greek banks to continue using their sovereign's bonds as collateral, it would not address the bigger problem of the ECB's Greek debt holdings.

The ECB is believed to have bought about 45 billion euros worth of the bonds since last year to try to calm the markets and is keen to avoid having to book losses on them, which could eat into its capital, limiting its ability to operate and might force it to seek new funds from euro zone governments.

"From the Fitch report, it looks like the ECB may well be able to receive Greek bonds as collateral," said Lena Komileva, economist at Brown Brothers Harriman. "It's the ECB's direct exposure to Greece that's the bigger issue here." The ECB steadfastly opposes extending the maturities on the Greek bonds it holds which would hit its own balance sheet and as it owns so much of the debt its participation in any rollover could be crucial to any Vienna-style initiative. Bini Smaghi underlined the ECB's position on Thursday.

"Asking the ECB, as has been the case recently, to extend the maturities of the government bonds it holds or to accept as collateral bonds from a state that is considered to have defaulted ... is a violation of the principle prohibiting the central bank from monetarily financing the treasury," he said.

Komileva believed some sort of a balance sheet transfer of Greek government bonds off the ECB's books may be possible. "There is nothing like an emerging global capital market crisis to focus politicians' minds and regrettably the situation will probably have to get a lot worse before a political agreement can be reached in the 11th hour," she said. Reuters

Too early for Taliban to play role D

espite hopes that talks with the Taliban could provide the political underpinning for the US staged withdrawal from Afghanistan, the discussions are still not at the stage where they can be a deciding factor.

With Washington due to announce next month how many troops it believes it can safely pull out of Afghanistan, diplomats say that months of talks between the two sides a crucial building block in any eventual political solution have yet to develop into serious negotiations.

"Right now they are gauging each other's temperature," said one diplomat who is involved in international discussions about how to reach a political settlement in Afghanistan.

A Western diplomat in Kabul gave a similar account, saying, "There are no serious load-bearing talks going on, a lot of contacts." President Barack Obama is expected to announce next month how many troops he plans to withdraw from Afghanistan as part of a commitment to begin reducing the US military presence from July and hand over to Afghan security forces by 2014.

Facing budget pressures at home, and calls to explain why the United States should linger in Afghanistan after killing Osama bin Laden in Pakistan on May 2, Obama is nonetheless expected to argue for maintaining a substantial troop presence.

But his officials have increasingly been holding out the prospect of talks with the Taliban as a way of eventually settling a war now into its 10th year.

"Perhaps this winter the possibility of some kind of political talks on reconciliation might be substantive enough to be able to offer some hope of progress," outgoing Defense Secretary Robert Gates said earlier this month.

According to official sources from several countries, Washington began face-to-face meetings with representatives of the Afghan Taliban led by Mullah Mohammed Omar towards the turn of the year, and possibly several months before that.

But, little is known about these contacts that they have been open to widely different interpretations. One diplomat, for example, said there was no substance to recent media reports of US-Taliban talks being hosted in Germany. The Taliban, who ruled Afghanistan from 1996 until they were ousted for refusing to give up al Quaeda after Sept. 11, 2001, publicly dismiss suggestions they are holding talks, saying that they will not negotiate until foreign troops leave.

But long before bin Laden was killed, they had been signalling a willingness to break with al Qaeda a key condition for a political settlement by saying they would not allow Afghanistan to be used to attack other countries.

PAKISTAN ENGAGEMENT In what may be a sign of progress, Washington is seeking to split a UN sanctions list for Taliban and al Qaeda figures into two and to remove some Taliban names from those subject to its travel restrictions and asset freezes, diplomats say.

Pakistan, which says it wants a settlement in Afghanistan to help end instability at home, is also projecting itself as willing to play a constructive role despite accusations from Washington that it backs the Taliban allegations it denies.

"I do get a sense they are willing to engage more ... that they do want to be brought into the fold," the western diplomat in Kabul said.

The United States says much of the

Taliban leadership is based in Pakistan, putting it in a strong position to influence their attitude towards peace talks.

The aims of Washington and the Taliban, however, remain far apart.

Washington is currently negotiating with the Afghan government security arrangements after 2014, which one diplomat from the region said could involve the United States retaining semi-permanent military bases there for 15 to 20 years.

While the Taliban say publicly they want all foreign troops out, some diplomats suggest they might settle for a clear timeline for withdrawal by 2014 but not for long-term bases.

One diplomat also said the Taliban's ambitions for their future in Afghanistan were still considerably bigger than the role sketched out for them by Western countries in which they would be included as part of a broader political process.

And while bin Laden's death would make it easier in theory for them to break with al Quaeda, the diplomat said there were no signs yet of them shifting their position since the May 2 raid.

Direct talks are no panacea Britain held its first direct talks with the Irish Republican Army in 1972 but took nearly 20 years to settle the Northern Ireland conflict.

Analysts and Western diplomats argue moreover that the Taliban cannot be compared to a national liberation movement with whom a peace deal can be struck and the war ended.

Rather, the insurgency is fragmented.

Even within the so-called Quetta shura Taliban led by Mullah Omar, no one is sure how far he can deliver younger fighters into a settlement.

Then there are other major insurgent groups including the Haqqani network

and the Hizb-e-Islami-Gulbuddin (HiG) led by Gulbuddin Hekmatyar which have not been included in the talks. Yet the Haqqani network is one of the most active insurgent groups, blamed among other things for involvement in a suicide attack which killed CIA agents in eastern Afghanistan in 2009. The United States has been pushing Pakistan to target the Haqqanis in the tribal areas bordering Afghanistan, and some have blamed its reluctance to do so on perceived support by the InterServices Intelligence (ISI) agency.

Pakistan says its overstretched military needs to give priority to tackling militant groups like the Tehrik-eTaliban Pakistan (TTP), who have been bombing its own people.

It is as yet unclear whether the Haqqanis would ever be brought into talks on a political settlement.

"At the moment the Americans are not yet ready," said the diplomat who is involved discussions about the talks.

"They think the Haqqanis are quite thick with al Qaeda."

Any political settlement would have to pull together not only that fragmented and Pashtun-dominated insurgency, but also other groups in Afghanistan like the Tajiks, Uzbeks and Hazaras, who regard the Taliban with deep suspicion. And it would have to be clear that regional powers, including Pakistan, India, Iran and Russia, were ready to support a political settlement rather than backing rival Afghan groups in a way which fuelled a growing civil war.

British officials frequently cite the analogy of a double-decker bus in which all the various Afghan parties ride on one deck with the regional powers on the other, steering towards a settlement. As yet, everyone is still at the bus stop. -Reuters

5

Friday, June 17, 2011

South East Asian stocks

Broadly weaker; Singapore hits 3-month low KSE-100 Index Opening Closing Change % Change Turnover (mn)

12,317.15 12,369.12 51.97 0.42 45.98

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

3,179.81 3,178.38 1.43 0.04 2.03

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

2,776.97 2,799.77 22.80 0.82 0.03

Major Gainers

Symbol

Close

Change

NESTLE 3,679.29 COLG 759.01 EXIDE 203.70 ILTM 228.95 IDYM 356.92

42.86 24.01 9.70 9.58 8.01

Major Losers

Symbol

Close

Change

ULEVER 5,255.83 JDWS 80.00 ENGRO 180.05 MRNS 56.12 NRL 363.06

-9.37 -3.95 -3.54 -2.83 -2.82

Top 5 Volume Leaders

Symbol DSFL PPL LOTPTA ENGRO SNGP

Close Vol (mn) 3.04 217.67 14.61 180.05 23.48

3.68 3.21 2.17 2.02 1.90

Active Issues Plus Minus Unchanged

110 148 78

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

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

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

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

1,582

Sales (Apr 11)

1,640

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

186 203 -

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

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

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

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

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

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

European Stocks Drop As Greece Worries Weigh

Oil Stocks Keep KSE in Green Nawaz Ali KARACHI: Shares bounce back at Karachi Stock Exchange on Thursday which ended upwards on buying in oil stocks on hopes of dividend announcement by Pakistan Petroleum (PPL) in its emergent board meeting however volumes remained on the lower side.

The benchmark KSE-100 index increased by 51 points to close at 12,369 points, KSE-30 index rose by 46 points to close

at 11,825 points and KSE allshare index was up by 31 points to close at 8,594 points.

"Bullish activity seen with thin volumes after Pakistan Petroleum announced an emergent board meeting to discuss shareholder entitlements", said Ahsan Mehanti, Director Arif Habib Investments.

Investor sentiment remained positive throughout the trading session led by local institutional interest in banking and oil sectors despite fall in global

Indian shares drop on rate hike worries MUMBAI: Indian shares fell 0.8 per cent on Thursday to their lowest close in three weeks after the central bank raised rates for a 10th time in 15 months and signalled more tightening was on the way, playing down slowing growth.

Although the 25 basis points (bps) increase was expected, the Reserve Bank of India's (RBI) comments were hawkish and pushed shares lower for the sixth time in seven sessions.

The central bank said it would persist in its battle against stubbornly high inflation.

"The RBI's accompanying statement points to further hikes ahead ... most of the comments remained hawkish," said Robert Prior Wandesforde, economist at Credit Suisse in Singapore.

"We continue to expect another 50 bps of hikes in two further 25 bps steps. The risks to this, if anything, are on the upside."

The 30-share BSE index shed 0.81 per cent, or 146.36 points, to 17,985.88, its lowest close since May 25. Twenty-two of its components closed in the red. Automakers Tata Motors, Bajaj Auto, Maruti Suzuki and Mahindra & Mahindra dropped between 1.1 per cent and 1.8 per cent.

Top-listed real estate firm DLF fell 0.4 per cent.

Concerns over the health of world economy also hit risk appetite, with software services companies falling on worries about growth in the United States, their biggest market.

Tata Consultancy Services, Infosys Technologies and Wipro shed between 1.2 per cent and 2.8 per cent.

Reliance Industries fell 1.4 per cent to 887.55 rupees, its lowest close since July 13, 2009, after HSBC downgraded the energy major to "neutral" from "overweight" and cut the price target to 1,040 rupees from 1,084 rupees.

The benchmark index has fallen more than 12 per cent in the year to date, making it the worst performer among major Asian markets.

Foreign funds have been net sellers of Indian shares for three sessions to June 14, offloading $215 million on slowing growth in India due to rising borrowing costs.

India's rate increase follows moves by China and Brazil to tighten monetary policy as the major emerging economies face a common battle of high inflation and economic growth that is easing from last year's heady pace.

Deutsche Bank's top emerging equities strategist John-Paul Smith, who sees emerging market equities underperforming developed markets by some 15 per cent by year end, told Reuters last week he sees a "significant chance" of a major sell-off.

The 50-share NSE index lost 0.9 per cent to 5,396.75.

In the broader market, more than 2 shares declined for every share that advanced, on a volume of 525 million shares, lower than its 90-day daily average volume of 604 million shares.

Leading private-sector lenders ICICI Bank and HDFC Bank fell 0.3 per cent and 1.3 per cent respectively.

Top lender State Bank of India bucked the trend and rose 1.1 per cent.-Reuters

commodities and capital markets, he added.

PPL has scheduled an emergent board meeting on June 21 where there are hopes among the investors that the company may announce a dividend of Rs7-8 per share. This invited buying interest in PPL and other oil stocks.

The session started on a positive note with 29 points up after which it stayed mostly in the grip of bulls during the rest of the day. However, some minor

Seoul down on foreign selling SEOUL: Seoul shares dipped on Thursday on renewed foreign investor selling as escalating Greek debt woes and worrisome US economic data dented market sentiment. The Korea Composite Stock Price Index ended down 1.91 per cent or 39.9 points at 2,046.63 points.

"A combination of global economic factors, from debt issues in Greece to signs of slowdown in the US economy are keeping investors cautious," said Yoo Soo-min, a market analyst at Hyundai Securities.

Greek Prime Minister George Papandreou said he would form a new cabinet on Thursday and seek a vote of confidence from his fractious Socialist party to see through a harsh austerity bill, the target of major protests.

A set of data showed on Wednesday the US economy was facing a troubling mix of higher prices and weak growth.

Foreign investors turned net sellers, offloading a net 212.9 billion won ($195.7 million) worth of stocks, the biggest daily amount in a week.

Falls were led by large-cap exporters. Shares in Samsung Electronics, the world's No.1 memory chip maker, fell 2 per cent and LG Electronics, the world's No.3 handset maker, lost 2.2 per cent.

Hyundai Motor, the country's top automaker, shed 2.8 per cent and Kia Motors dipped 2.9 per cent.

Shares in Lotte Shopping fell more than 7 per cent after South Korea's biggest retailer said on Thursday it would sell 979 billion won ($900 million) See # 5 Page 11

HK, China shares hit fresh 2011 lows HONG KONG/SHANGHAI: Hong Kong and China shares closed at lows for the year on Thursday, with investors pushing blue-chip stocks below chart supports in heavy trading volume, suggesting more losses can be expected ahead.

Fears that Greece's financing problems will spread to other countries in Europe kept investors slashing risk from their portfolios throughout the region, leaving the relatively liquid financial sector in the firing line of short sellers.

"Greece is like a Lehman Brothers situation, except a country version," said Tanrich Securities' vice-president, Jackson Wong. "It's magnifying uncertainty right now, even though most banks don't have much exposure to the euro debt situation."

The benchmark Hang Seng Index closed down 1.8 per cent to 21,953.1. The next support for the index will probably be around 21,800 a closing high in August 2010. Turnover on Thursday spiked more than 25 per cent from the prior session to HK$76.4 billion.

The biggest drag on the index was HSBC Holdings Plc, which fell 1.5 per cent to HKD$76.90. The stock fell below HK$77.73, the 61.8 per cent retracement of the May 2010-February 2011 rise that has served as solid support all year, and accelerated a decline from there.

Hong Kong Exchanges & Clearing Ltd (HKEx) lost 2.5 per cent in 3.6 times its 30-day average volume after Samsonite International SA stuttered on its listing debut, becoming the latest in a string of weak Hong Kong initial public offering performance.

Thursday's losses pushed HKEx's 14-day relative strength (RSI) index down to 27.7, leaving it with a handful of stocks in the Hang Seng with RSIs below 30 -- a level which usual reflects oversold conditions.

CHINA DOWN ON RATE HIKE Fears of an interest rate hike after yields at a 3-month bill auction in China were up more than expected weighed on Chinese share markets. The

benchmark Shanghai Composite Index closed down 1.5 per cent to close at 2,664.3 points, the lowest since October 2010, bringing its losses on the year to 5.1 per cent.

Energy plays were among the standout underperformers after a recent slide in global crude oil prices, with PetroChina, China's largest oil company by market capitalisation, down 1.8 per cent.

An unexpected 8 per cent rise on the Chinese central banks' three-month bills on Thursday underpinned the fears of many market participants that another interest rate rise may be imminent.

While some dealers believe this to be a signal the central bank was sending out, others said any interest rate hike was unlikely this month.

"Even if China wants to raise interest rates, it will not be this month," said Zhang Gang, a senior analyst at Central Securities. "It has already raised the RRR this month.

More policy tightening will hurt the economy." -Reuters

profit taking was witnessed which sent the index into the red zone temporarily. The index touched the lowest level of the day of 12,297 points (-ve 19).

However, renewed buying interest mainly in oil stocks allowed the index to bounce back into green. Just near the closing bells index touched an intra-day high of 12,381 points (+ve 64) and finally closed near those levels. Volumes however remained depressed as 45.9 million shares exchanged hand

during the day which was 8.9 million shares less as compared to a turnover of 54.8 million shares on Wednesday.

Soneri Bank (R) was the most traded with 4 million shares followed by Dewan Salman with 3.68 million shares and Fauji Cement (R) 3.26 million shares.

Despite a positive ending most of the scrip closed on a negative note as out of total 336 active issues; 148 declined and 110 advanced while 78 issues remained unchanged.

Nikkei holds 9,400 levels TOKYO: The Nikkei average fell 1.7 per cent on Thursday, joining other equity markets in tumbling on Greek debt woes and disappointing US data, but support at 9,400 that has mainly been in place since April is likely to hold as valuations are seen as attractive.

Selling accelerated in thin afternoon trade as gold prices weakened and US stock futures fell, with commodity trading advisors cited as leading the decline.

Euro zone ministers failed on Tuesday to reach agreement on how private holders of Greek debt should share the costs of a new bailout. Uncertainty over a second rescue for Athens and fears of contagion pushed the bond yields of Greece, Ireland and Portugal to euro lifetime highs. Adding to investors' unease was Moody's threat to down grade large French banks.

But analysts noted that Japanese stocks, which have shed 8 per cent since the March 11 quake, have broadly underperformed other markets, making valuations tempting. They added that even if 9,400 levels broken, Nikkei is unlikely to stray too far below that and could easily regain ground.

"Further falls could come if overseas stocks fall sharply, but domestic supportive factors such as expectations for the Bank of Japan to step in with exchange traded fund buying may help somewhat even in a

weak environment," said Hikaru Sato, a senior technical analyst at Daiwa Securities Capital Markets.

The Nikkei lost 163.04 points to close at 9,411.28. The broader Topix index shed 1.5 per cent to 812.41.

"Commodity trading advisors seemed to be selling on weakness in US futures," said Hiroyuki Fukunaga, chief executive and technical analyst at Investrust, adding that further support for the Nikkei lay at 9,380 if 9,400 was broken.

Earlier in the day, foreign investors placed basket buy orders, two traders said, with European funds seen purchasing 3 billion yen in about 20 small-cap stocks, while Asian players bought some 30 blue chip names for the total of 12 billion yen.

In contrast, domestic investors were spotted offloading some 10 billion yen in blue chip shares.

The Nikkei has traded mainly between 9,400 and 9,800 since April and analysts expect this range to hold for the next few weeks, saying Tokyo shares are trading roughly at book value compared with around 2.1 times book value for the S&P 500.

STEELMAKERS HIGHER Resource-related shares underperformed after oil slid more than 4 per cent on Wednesday as signs of further economic weakness fed See # 4 Page 11

ANNOUNCEMENT Company Exide (PAK)

Period Yearly

Div/Bon/Right 60%(D) 25%(B)

PAT (Rs in mn) 276.39

EPS(Rs) 48.92

US stocks mid-day

Wall Street rises on energy shares NEW YORK: US stocks rose on Thursday as investors looked for value in the market after its recent sell-off, shrugging off weaker-than-expected regional factory data.

Energy shares helped lead gains, with the S&P 500 energy index up 0.9 per cent. The S&P energy index has fallen about 10 per cent since the market's May 2 high, while the S&P 500 has dropped roughly 7 per cent in that period.

"When we started the week, the stock market was arguably undevalued and pessimism was widespead," said Hugh Johnson, chief investment officer of Hugh Johnson Advisors LLC in Albany, New York.

Stocks briefly turned lower for the day after data showed factory activity in the US MidAtlantic region unexpectedly shrank in June, another sign of weakness in the manufacturing sector.

While the data shows a piece of the economic puzzle, investors are looking for further evidence of how much longer the economy's "soft patch" may continue, Johnson said. "The key is June. Did we start to recover in June?"

Another report on Thursday showed the number of Americans signing up for jobless benefits fell last week, while housing starts and building permits rose in May. The Dow Jones industrial average was up 83.10 points, or 0.70 per cent, at 11,980.37.

The Standard & Poor's 500 Index was up 6.64 points, or 0.52 per cent, at 1,272.06. The Nasdaq Composite Index was up 6.65 points, or 0.25 per cent, at 2,638.11.

Among the day's upbeat company news, shares of Kroger Co, the biggest US supermarket operator, jumped 4.8 per cent to $24.06 after it posted a higher-than-expected quarterly profit that was helped by cost controls and a rise in sales. Kroger also boosted its full-year profit forecast.

Analysts are eyeing technical support for the S&P 500 at 1,256.81, its 200-day moving average, and at the 2011 low near 1,250.-Reuters

Dhiyan

RANGE BOUND ACTIVITIES TO CONTINUE Farhan Mansuri, VP Capital Markets Arif Habib Limited According to my expectations market will remain range bound in the near future with low volumes where index would trade between 12300 and 12500 points. Investors are recommended to invest in oil & gas, banking and fertilizers sectors. Positive development on Capital Gains Tax (CGT) issue, buying by foreign and local institutions and better than expected corporate result have the potential to drive the market. Today market looks positive with low volume.

Muzammil Khan, AVP BMA Capital Market is likely to witness range bound activities moving forward with the index moving between 12,300 and 12,450 points. Investors are advised to invest in those stocks which are expected to announce corporate results, particularly power stocks, FFC and PPL. However, trading should be avoided. Market would be dull today.

6

Friday, June 17, 2011

Market

KSE 100 Index

Symbols

Volume

45,979,036

Value

2,328,644,205

Trades

33,540

Advanced Declined Unchanged Total

Current High Low Change

110 148 78 336

All Share Index

12,369.12 12,385.42 12,295.78 h51.97

Current High Low Change

8,594.48 8,604.63 8,548.05 h31.38

OIL AND GAS

Company

Paid up Cap(mn)

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

High Low 1,574.58 1,546.54 Total cos Defaulter cos 12 P/BV (x) ROE (%) 3.51 32.54

PE

Open

High

Low

6.87 4.16 4.27 5.01 10.55 7.96 7.80 47.49 4.01 7.94

382.22 128.40 9.40 104.46 365.88 154.91 211.55 354.13 85.01 279.45 23.42 222.28

382.75 128.90 9.50 105.00 366.99 156.50 218.25 354.45 85.41 283.00 22.50 223.50

379.00 126.05 9.33 104.30 362.50 154.50 210.70 351.30 84.57 277.00 22.50 222.25

Close Chg 380.42 126.99 9.36 104.50 363.06 156.00 217.67 353.58 85.00 281.04 22.50 223.27

-1.80 -1.41 -0.04 0.04 -2.82 1.09 6.12 -0.55 -0.01 1.59 -0.92 0.99

Current High Low Change

KMI 30 Index Current High Low Change

11,825.25 11,845.55 11,738.30 h46.85

21,138.96 21,177.09 20,956.28 h128.68

Last 60 days High Low

Volume 26607 886693 330332 4560 72813 414290 3207771 635229 4063 593590 1000 1657

394.90 143.50 10.10 113.75 387.35 157.51 218.25 364.90 99.25 291.50 28.29 231.00

352.25 119.35 7.93 98.50 283.00 128.21 202.50 318.16 81.23 269.50 22.11 203.00

% Change 0.92 5-Day High 1,568.56 5-Day Low 1,550.16

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

2011 Div BR (%) (%)

20B115.00 - 23.43 - 30.00 20B 50.00 -100.00 - 80.00 -

-

Open 821.93 Turnover 19,129 P/E (x) 5.70 Company

High Low 839.71 818.93 Total cos Defaulter cos 4 2 P/BV (x) ROE (%) 1.46 25.53

Close 831.88 Listed cap 3,242.17 mn Payout (%) 11.08

Change 9.95 Market cap 13,518.82 mn Div Yield (%) 1.94

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1092 1321

8.11 8.10

86.54 28.24

88.89 28.00

86.50 27.60

88.11 1.57 27.62 -0.62

18524 605

91.20 31.45

Pak Int Cont.Terminal PNSC

66.25 25.18

Paid up Cap(mn)

Agritech Limited

PE

Open 19.33

3924

-

Bawany Air

75

3.77

7.92

BOC (Pak)

250

7.15

95.43

Clariant Pak

341

4.94 162.27

Close 1,845.61 Listed cap 52,251.88 mn Payout (%) 48.81

High

Low

Close Chg

Volume

19.28

18.50

Change -2.72 Market cap 379,539.52 mn Div Yield (%) 5.54

Last 60 days High Low

Open 1,166.70 Turnover 1,575,148 P/E (x) 3.97 Paid up Cap(mn)

High Low 1,183.07 1,151.53 Total cos Defaulter cos 19 4 P/BV (x) ROE (%) 1.01 25.35

PE

Open

High

Low

144 4.31 101 5.90 719 7.78 1087 56 4.16 598 4.62 450 200 6.30 1428 786 7.88 823 15.46 150 1.12

71.99 220.02 123.54 3.01 194.00 23.70 3.35 3.13 10.75 225.60 69.01 23.00

71.00 224.99 129.00 3.39 203.70 24.25 3.49 3.35 10.70 228.00 70.00 22.81

68.50 220.50 123.00 2.97 201.10 23.99 3.37 3.11 10.35 222.80 68.26 22.80

Close Chg

Close 1,172.04 Listed cap 6,768.53 mn Payout (%) 20.42

Volume

Last 60 days High Low

17.86

44502 1101 903

99.80

87.71

60

5159

167.00

140.00

135

-

FOOD PRODUCERS

50 300B

-

-

-

-

-

Performance of SR Food Producers Index

-

-

-

62.80

61.11

61.55 -0.78

46132

76.56

56.10

Descon Chemical

1996

-

2.32

2.40

2.25

2.31 -0.01

3103

3.09

2.00

Descon Oxychem Ltd.

1020 10.15

6.90 -0.01

56639

-

6.91 2.96

6.98 3.07

6.81 2.90

3.04 0.08

9.35

3680471

6.81

-

3.65

2.11

-

-

-

-

179.65

60

20B

-

-

- 27.5R

-

-

-

-

3933 6635

-

11.12

11.29

11.10

11.23 0.11

48979

13.95

10.70

22000

-

14.57

14.65

14.40

14.43 -0.14

569518

14.95

12.10

-

145.70 143.10 144.90 0.77

8482

ICI Pakistan

819738

147.95

129.05

130

25B 45.00

-

6.36

42.23

42.60

41.97

42.49 0.26

853088

44.21

39.60

65.5

- 12.50

-

13.08

13.35

13.00

13.11 0.03

112429

14.49

10.81

-

-

-

-

157.90 154.50 155.32 0.42

106700

172.00

148.02

175

-

-

-

1388

Ittehad Chemical Lotte Pakistan Mandviwala Nimir Ind Chemical Shaffi Chemical

8.92 144.13

8.63 154.90

360

4.28

30.95

29.50

29.42

29.43 -1.52

600

34.33

20.11

5

-

5

-

15142

4.08

14.58

14.68

14.51

14.61 0.03

2167420

17.36

14.51

5

-

-

-

74

-

0.85

1.00

0.81

0.99 0.14

9125

1.40

0.18

-

-

-

-

1106 11.61

2.74

2.75

2.65

2.67 -0.07

99809

3.40

2.26

-

-

-

-

120 28.63

2.30

2.34

2.01

2.29 -0.01

1492

2.99

2.00

-

-

-

-

Sitara Chem Ind

214

2.47

98.72

Sitara Peroxide

551

5.45

17.61

90

5.18

36.76

Wah-Noble

-

725 11.02

Fauji Fert.Bin Qasim XD 9341 Ghani Gases Ltd

-

2020914 208.40

Engro Corporation Ltd

Fauji Fertilizer

183.90 179.65 180.05 -3.54

-

-

Engro Polymer Fatima Fertilizer

8.05 183.59

-

-

-

-

100.00

97.50

99.44 0.72

5251

112.45

96.37

25

5B

-

-

17.79

17.51

17.59 -0.02

25006

19.99

36.75

35.50

36.65 -0.11

7979

37.97

16.72

-

-

-

-

34.19

50

-

-

-

FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,111.45 Turnover 12,427 P/E (x) 5.72

High Low 1,125.22 1,111.20 Total cos Defaulter cos 4 1 P/BV (x) ROE (%) 0.43 7.47

Close 1,119.53 Listed cap 1,186.83 mn Payout (%) 25.28

Change 8.09 Market cap 3,088.54 mn Div Yield (%) 4.42

Last 60 days High Low

% Change 0.73 5-Day High 1,130.86 5-Day Low 1,111.45

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Century Paper

707

-

16.66

16.70

16.65

16.66 0.00

11501

18.00

13.85

-

-

-

-

Security Paper

411

7.27

40.55

41.50

40.66

41.09 0.54

873

42.80

37.00

50

-

-

-

Company

Volume

2010 Div BR (%) (%)

2011 Div BR (%) (%)

Open 2,154.73 Turnover 125,766 P/E (x) 52.06 Company

Paid up Cap(mn)

Adam Sugar AL-Abbas Sugar Colony Sugar Mills Dewan Sugar Faran Sugar Habib Sugar J D W SugarSPOT Mehran SugarXDXB Mirpurkhas Sugar Mirza Sugar National Foods Premier Sugar Quice Food S S Oil Sakrand Sugar Sanghar Sugar Shahmurad Sugar Shakarganj Mills Tandlianwala Wazir Ali

58 174 990 365 217 750 539 173 84 141 414 38 107 57 223 119 211 695 1177 80

PE 1.06 5.68 3.42 1.35 4.86 1.59 1.70 3.17 0.28 14.34 5.84 0.35 18.64 1.66 1.16 1.20 29.61 -

Company

High Low 1,031.24 1,010.09 Total cos Defaulter cos 7 1 P/BV (x) ROE (%) 1.03 33.10 Close Chg

Close 1,020.94 Listed cap 3,596.11 mn Payout (%) 30.91

Change -6.48 Market cap 15,264.84 mn Div Yield (%) 9.98

Last 60 days High Low

Volume

% Change -0.63 5-Day High 1,045.14 5-Day Low 1,020.94

2010 Div BR (%) (%)

2011 Div BR (%) (%)

PE

Open

High

Low

Crescent Steel XD Dost Steels Ltd Huffaz Pipe XD Inter.Steel Ltd.

565 1.79 675 555 21.25 4350 -

26.80 2.20 12.00 13.77

26.99 2.20 12.49 13.95

26.30 2.10 11.90 13.26

26.49 2.19 11.90 13.50

-0.31 -0.01 -0.10 -0.27

59079 13680 3450 65003

29.75 2.98 13.29 15.06

26.30 1.62 11.05 0.00

30 -

- 20.00 25B 15.00 -

-

International Ind Siddiqsons Tin

1199 9.07 785 25.71

50.96 9.00

50.90 9.10

50.00 9.00

50.72 -0.24 9.00 0.00

18776 1650

54.50 9.98

48.52 8.55

40 7.5

20B -

-

15 -

Open 880.13 Turnover 1,770,245 P/E (x) 5.88 Company

Paid up Cap(mn)

PE

1828

Al-Abbas Cement

Open

High

High Low 893.46 870.51 Total cos Defaulter cos 37 6 P/BV (x) ROE (%) 0.42 7.10 Low

Close Chg

Close 882.40 Listed cap 54,792.74 mn Payout (%) 19.04

Company

Last 60 days High Low

Volume

% Change 0.26 5-Day High 899.31 5-Day Low 880.13

2010 Div BR (%) (%)

-

2.63

2.70

2.70

2.70 0.07

1954

3.25

2.35

-

-

866 6.71 982 15.54 948 -

53.26 2.05 1.98

53.01 2.05 1.95

52.76 2.00 1.65

53.00 -0.26 2.02 -0.03 1.98 0.00

6023 8700 320

56.70 2.24 2.49

50.75 1.50 1.15

50 -

-

-

-

Dewan Cement DG Khan Cement Ltd

3891 4381 31.05

1.89 23.32

2.00 23.48

1.89 23.17

1.94 0.05 23.29 -0.03

42038 693229

2.67 26.44

1.36 21.31

-

20R

-

20R

Fauji Cement Flying Cement Ltd Frontier Ceramics

6933 1760 77

7.74 -

4.46 1.50 2.45

4.50 1.52 3.39

4.40 1.45 2.00

4.49 0.03 1.51 0.01 2.40 -0.05

293895 30500 1004

5.04 1.95 3.80

3.99 1.26 1.66

-

-

-

92R -

Gharibwal Cement

4003

-

5.15

6.10

4.25

5.45 0.30

1009

13.50

4.25

-

-

-

-

32 1288 13126 73.00

0.41 6.75 2.99

0.64 6.70 2.99

0.59 6.31 2.91

0.64 0.23 6.70 -0.05 2.92 -0.07

544 6424 102893

0.81 7.87 3.38

0.26 5.95 2.10

-

-

-

-

Attock Cement Dadabhoy Cement Dandot Cement

Haydery Const Kohat Cement Lafarge Pakistan Cmt.

- 100R

2011 Div BR (%) (%)

Lucky Cement

3234

5.81

70.89

71.65

70.66

71.47 0.58

350546

77.43

64.56

40

-

-

-

Maple Leaf Cement Maple Leaf(Pref) Pioneer Cement

5267 536 2271

2.04 -

2.32 2.77 5.47

2.43 3.48 6.25

2.30 2.60 5.00

2.31 -0.01 2.77 0.00 5.30 -0.17

190131 310 35420

3.05 3.96 6.40

1.97 2.27 4.50

-

-

-

-

Safe Mix Concrete Shabbir Tiles

200 361

-

5.45 6.50

5.74 6.67

5.25 5.50

5.36 -0.09 6.24 -0.26

2600 2827

6.35 8.50

4.17 5.25

-

-

- 100R

Thatta Cement

798

-

16.65

17.65

17.00

17.27 0.62

2350

19.19

16.50

-

50R

-

-

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 985.48 Turnover 129,716 P/E (x) 2.79

High Low 992.12 975.08 Total cos Defaulter cos 13 2 P/BV (x) ROE (%) 1.22 43.91

Close 981.04 Listed cap 3,043.31 mn Payout (%) 15.55

Change -4.44 Market cap 36,549.74 mn Div Yield (%) 5.58

% Change -0.45 5-Day High 991.91 5-Day Low 981.04

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

Cherat Papersack

172

2.44

49.61

49.89

49.25

49.66 0.05

6159

56.90

46.45

20

25B

-

50R

ECOPACK Ltd Ghani Glass MACPAC Films

230 1067 389

5.54 2.41

1.58 54.60 12.05

1.68 55.50 12.90

1.50 54.05 12.16

1.50 -0.08 54.50 -0.10 12.05 0.00

105502 5331 111

2.35 58.50 15.21

1.31 49.00 8.60

25 -

10B -

-

-

124.50 180.80

103.01 137.00

32.5 100

-

-

-

Company

Packages Ltd Tri-Pack Films

844 19.00 115.00 300 6.83 176.03

115.00 114.00 114.00 -1.00 177.90 175.00 175.09 -0.94

5220 7311

2010 Div BR (%) (%)

2011 Div BR (%) (%)

Company

Paid up Cap(mn)

AL-Ghazi Tractor 215 Dewan Auto Engineering 214

PE

Open

3.89 227.00 1.40

Ghandhara Ind KSB Pumps

213 10.19 132 -

Millat Tractors

366

9.00 36.44

8.42 549.37

High

Low

Close Chg

227.00 225.00 224.90 -2.10 1.59 1.21 1.50 0.10 8.57 35.03

8.56 34.70

8.56 -0.44 34.73 -1.71

556.00 550.61 554.13

4.76

1234 32868

-

18.00 18.07 91.15 100.40 2.01 2.19 2.77 2.80 18.01 18.51 27.06 27.32 80.00 80.00 56.12 56.12 49.30 49.31 2.51 2.60 82.60 83.02 38.20 39.61 2.56 2.57 4.90 4.90 2.05 2.05 11.70 11.70 9.87 9.88 5.90 5.93 53.00 53.00 6.00 6.00

-0.08 4.49 0.00 -0.20 0.00 0.12 -3.95 -2.83 -1.59 0.00 0.47 -0.60 0.03 -0.35 -0.01 -0.43 0.66 -0.07 0.00 -1.00

Volume

90 100 50 60 20 150 5 10

20B 15B 20B

Change 3.18 Market cap 305,283.33 mn Div Yield (%) 0.59

Last 60 days High Low

1195 19.24 3011 100.45 673 3.70 2003 3.85 172 19.50 10027 28.00 6352 84.30 2610 68.48 1591 52.00 20309 3.65 575 88.00 170 42.97 1500 3.50 500 6.45 64500 3.00 3173 13.01 500 10.79 4954 7.49 498 60.30 1268 8.62

2010 Div BR (%) (%)

11.50 88.35 2.01 2.16 17.50 21.52 71.75 51.00 39.51 2.47 55.00 34.23 2.20 3.80 1.75 11.50 7.91 5.17 43.00 5.50

2010 Div BR (%) (%)

% Change 0.46 5-Day High 1,173.88 5-Day Low 1,159.30 2011 Div BR (%) (%) 65.00 60.00 50.00 10.00

15B 25B -

% Change 0.15 5-Day High 2,173.67 5-Day Low 2,152.92 2011 Div BR (%) (%)

25 50 25 25 25B 7010B 12.5R 35 20B 15.00 15 20B 10 12 10 15 10 -

10R 10B -

High Low 710.31 695.39 Total cos Defaulter cos 15 7 P/BV (x) ROE (%) 0.19 10.64

Close 693.73 Listed cap 3,763.71 mn Payout (%) 6.27

High

Low

Close Chg

Volume

1219 693

1.58

7.00 11.99

7.10 12.05

6.80 11.87

7.00 0.00 12.00 0.01

14567 6407

Change 0.08 Market cap 4,559.41 mn Div Yield (%) 3.57

Last 60 days High Low

2010 Div BR (%) (%)

14.50 14.47

17.5

6.80 11.20

10B -

% Change 0.01 5-Day High 713.92 5-Day Low 689.89 2011 Div BR (%) (%) - 200R

PERSONAL GOODS Performance of SR Personal Goods Index Open 970.02 Turnover 1,603,372 P/E (x) 6.28 Paid up Cap(mn)

(Colony) Thal Amtex Limited Azgard Nine Babri Cotton Bata (Pak) Brothers Textile Chenab Limited Colgate Palm Colony Mills Ltd Crescent Jute D S Ind Ltd Dawood Lawrencepur Dewan Farooque Spin.

Dewan Khalid Textile Dewan Mushtaq Textile Din Textile Ellcot Spinning Gadoon Textile XD Ghazi Fabrics Gul Ahmed Textile Hira Textile Mills Ltd. Ibrahim Fibres Indus Dyeing Island Textile J A Textile Khalid Siraj Kohinoor Ind Kohinoor Textile Maqbool Textile Masood Textile Mohd Farooq Nishat (Chunian) Nishat Mills Prosperity Quetta Textile Regent Textile Reliance Weaving Rupali Poly Saif Textile Sana Ind Saritow Spinning Service Ind Shadab Textile Shadman Cot Shahpur Textile Thal Ltd Treet Corp Tri-Star Poly Zephyr Textile Ltd Zil Limited

56 2594 4493 37 76 98 1150 316 2442 238 600 591 978 57 34 204 110 234 326 635 716 3105 181 5 126 107 303 2455 168 600 189 1620 3516 185 130 48 308 341 264 55 133 120 30 176 140 307 418 215 594 53

High Low 976.52 960.30 Total cos Defaulter cos 211 73 P/BV (x) ROE (%) 0.54 8.64

PE

Open

High

Low

0.27 6.91 21.35 1.83 1.91 0.30 0.19 0.57 0.58 0.68 0.48 3.23 0.78 3.27 3.40 0.21 0.38 4.97 1.98 1.63 3.74 4.92 0.94 0.51 0.63 3.15 0.29 2.94 0.30 3.07 0.54 16.49 0.67 6.84 5.69 6.50

1.80 2.99 6.59 16.80 584.11 0.22 2.00 735.00 1.60 0.70 1.15 33.18 2.15 1.80 4.62 27.23 24.59 70.20 5.01 51.48 3.87 46.00 348.91 219.37 2.00 1.48 1.19 4.31 8.25 17.73 0.73 24.33 55.79 14.50 42.24 18.90 12.05 42.00 8.00 39.04 1.59 178.16 14.50 16.90 0.28 103.63 54.69 0.70 3.39 61.12

2.00 3.02 6.67 16.00 591.00 0.49 2.15 760.00 1.90 0.93 1.24 33.18 2.90 2.20 4.47 28.58 24.50 70.00 4.80 51.00 3.90 45.90 360.35 230.00 2.00 2.24 1.24 4.32 9.19 18.40 0.99 24.47 55.94 14.50 44.35 19.90 13.05 41.75 8.36 39.00 1.68 185.00 13.51 17.90 0.49 104.00 55.49 0.70 2.60 62.00

2.00 2.85 6.40 16.00 560.00 0.49 2.05 720.00 1.76 0.53 1.05 32.74 2.45 1.19 3.75 28.58 24.50 69.92 4.52 51.00 3.86 44.10 336.36 212.00 2.00 1.40 1.07 4.32 9.19 17.55 0.80 24.21 55.25 14.50 40.13 18.00 12.25 41.25 8.00 38.75 1.57 175.80 13.51 17.80 0.45 101.50 54.25 0.65 2.60 59.50

Close Chg 2.00 2.90 6.46 16.00 587.13 0.49 2.10 759.01 1.76 0.72 1.17 32.97 2.90 2.00 3.76 28.58 24.50 69.97 4.68 51.00 3.90 45.80 356.92 228.95 2.00 1.40 1.23 4.32 9.19 17.55 0.73 24.28 55.50 14.50 40.13 18.90 12.25 41.75 8.30 38.75 1.57 179.67 14.50 17.81 0.48 101.73 54.70 0.65 4.38 60.00

0.20 -0.09 -0.13 -0.80 3.02 0.27 0.10 24.01 0.16 0.02 0.02 -0.21 0.75 0.20 -0.86 1.35 -0.09 -0.23 -0.33 -0.48 0.03 -0.20 8.01 9.58 0.00 -0.08 0.04 0.01 0.94 -0.18 0.00 -0.05 -0.29 0.00 -2.11 0.00 0.20 -0.25 0.30 -0.29 -0.02 1.51 0.00 0.91 0.20 -1.90 0.01 -0.05 0.99 -1.12

Close 970.98 Listed cap 47,070.70 mn Payout (%) 16.68

Volume 1000 272497 610879 5000 1257 500 8011 3281 1001 2604 11615 979 30100 14000 1010 600 817 2781 1900 2000 86750 1102 1004 463 1600 2205 681 501 1000 2009 195 42642 400292 2229 929 302 2550 2500 1365 1935 3000 3401 200 4914 4757 36188 15888 1900 902 8021

Change 0.96 Market cap 127,606.27 mn Div Yield (%) 2.66

Last 60 days High Low 2.84 3.76 9.00 18.41 615.00 1.20 2.89 784.00 2.80 1.40 1.55 47.00 4.18 2.48 5.40 33.06 28.74 102.24 8.00 53.65 5.00 49.92 360.89 250.80 3.00 2.24 1.75 5.25 10.00 18.89 1.20 29.50 66.19 16.90 73.00 25.10 14.00 43.73 11.40 41.98 2.18 204.00 14.50 17.90 0.60 112.19 59.20 1.49 4.80 68.00

2010 Div BR (%) (%)

% Change 0.10 5-Day High 974.57 5-Day Low 970.02 2011 Div BR (%) (%)

1.00 1.81 - 30B 4.40 14.00 - 15B 411.00 280 0.11 1.65 647.01 135 15B 1.50 0.25 0.95 32.74 5 15B 1.81 1.10 3.02 26.35 20 10B 24.00 35 66.00 70 4.00 10 41.25 12.5 3.63 10 43.25 20 273.94 50 - 50.00 200.00 50 1.90 1.00 0.75 3.77 7.90 22.5 16.70 15 100R 0.51 23.15 15 54.95 25 45R 13.60 30 40.13 20 18.00 10.70 25SD 38.05 40 7.10 36.50 60 1.22 154.00 75 12.99 10 12.90 5 0.25 97.00 80 20B 46.00 50 900B 0.23 2.25 55.00 35 -

-

Performance of SR Pharma and Bio Tech Index

Change 10.50 Market cap 32,893.10 mn Div Yield (%) 17.20

Last 60 days High Low 239.00 2.15

-

PHARMA AND BIO TECH

Close 1,646.18 Listed cap 1,336.62 mn Payout (%) 131.49

Volume

Close Chg

Open

Performance of SR Industrial Engineering Index High Low 1,649.70 1,633.78 Total cos Defaulter cos 11 1 P/BV (x) ROE (%) 2.91 38.02

18.20 100.45 2.29 2.99 18.71 27.49 83.50 59.98 52.00 2.67 83.25 39.61 2.60 4.90 2.11 11.70 9.88 6.49 53.00 6.05

Low

Close 2,157.91 Listed cap 11,335.33 mn Payout (%) 30.57

PE

INDUSTRIAL ENGINEERING Open 1,635.69 Turnover 80,298 P/E (x) 7.65

18.15 95.91 2.19 3.00 18.51 27.20 83.95 58.95 50.90 2.60 82.55 40.21 2.54 5.25 2.06 12.13 9.22 6.00 53.00 7.00

High

High Low 2,169.00 2,142.82 Total cos Defaulter cos 61 16 P/BV (x) ROE (%) 15.77 30.30

Paid up Cap(mn)

Pak Elektron Tariq Glass Ind

Company

Change 2.28 Market cap 64,873.04 mn Div Yield (%) 3.24

Open

Open 693.65 Turnover 21,014 P/E (x) 1.76

CONSTRUCTION AND MATERIALS Performance of SR Construction and Materials Index

2011 Div BR (%) (%)

% Change 0.64 5-Day High 1,646.18 5-Day Low 1,624.77

2010 Div BR (%) (%)

200.00 0.71

400 -

1800 508

10.84 56.90

8.01 33.99

12.5

43808

558.00

509.52

650

2011 Div BR (%) (%)

-

-

-

-

-

-

25B325.00

-

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

84.88

Total Assets (Rs in mn)

MA (10-day)

21.07

Total Equity (Rs in mn)

MA (100-day)

20.90

Revenue (Rs in mn)

138,421.94

MA (200-day)

25.11

Interest Expense

4,650.15

1st Support

22.70

Profit after Taxation

2,554.56

2nd Support

21.95

EPS 10 (Rs)

1st Resistance

23.90

Book value / share (Rs)

34.06

2nd Resistance

24.35

PE 11 E (x)

23.17

Pivot

23.15

PBV (x)

18,702.08 161,629.83

4.652

0.69

SNGP closed up 0.78 at 23.48. Volume was 906 per cent above average (trending) and Bollinger Bands were 76 per cent wider than normal.

The company's profit after taxation stood at Rs415.224 million which translates into an Earning Per Share of Rs0.76 for the nine months of fiscal year (9MFY11).

SNGP is currently 6.5 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 very strong flows of volume into SNGP (bullish).

Momentum oscillator is currently indicating that SNGP is currently in an overbought condition.

Dewan Farooque Motors Limited

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

74.99

Total Assets (Rs in mn)

MA (10-day)

2.90

Total Equity (Rs in mn)

(747.01)

MA (100-day)

2.01

Revenue (Rs in mn)

1,025.34

MA (200-day)

1.87

Interest Expense

1st Support

3.01

Loss after Taxation

2nd Support

2.78

EPS 10 (Rs)

1st Resistance

3.43

8.92 (437.50) (4.917)

Book value / share (Rs)

2nd Resistance

3.62

PE 11 E (x)

Pivot

3.20

PBV (x)

4,204.55

(8.40) (0.39)

DFML closed up 0.29 at 3.30. Volume was 328 per cent above average (trending) and Bollinger Bands were 226 per cent wider than normal.

The company's loss after taxation stood at Rs212.713 billion which translates into a Loss Per Share of Rs2.39 for the nine months of fiscal year (9MFY11).

DFML is currently 76.1 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 DFML (bullish). Trend forecasting oscillators are currently bullish on DFML. Momentum oscillator is currently indicating that DFML is currently in an overbought condition.

Saif Textile Mills Limited

HOUSEHOLD GOODS

INDUSTRIAL METALS AND MINING Open 1,027.42 Turnover 96,635 P/E (x) 3.10

-

Performance of SR Household Goods Index

Performance of SR Industrial Metals and Mining Index

Paid up Cap(mn)

68.50 195.00 123.00 1.50 183.00 22.01 2.16 2.90 9.00 205.51 61.03 22.50

7.50 -0.42

62.33

-

25B

74.85 224.99 160.00 3.46 206.99 26.17 4.50 4.60 11.58 233.75 76.90 25.50

95.00 -0.43

3.57

10R

1428 17342 13183 1296369 125797 1600 93002 16503 6051 832 2469 572

18.52 -0.81

6.11

-

-1.96 2.24 1.11 0.29 9.70 0.53 0.05 0.21 -0.33 2.40 -0.38 -0.20

7.50

9.45

5

70.03 222.26 124.65 3.30 203.70 24.23 3.40 3.34 10.42 228.00 68.63 22.80

94.01

4813

3663

2011 Div BR (%) (%)

Agriautos Ind Atlas Battery Atlas HondaXDXB Dewan Motors Exide (PAK) General Tyre Ghandhara Nissan Ghani Automobile Ind Honda Atlas Cars Indus Motors Pak Suzuki Sazgar Engineering

8.50

Dawood Hercules

Dewan Salman

2010 Div BR (%) (%)

40 15

Change 5.34 Market cap 43,139.98 mn Div Yield (%) 5.14

95.00

162.50 161.06 161.88 -0.39

23.64

% Change -0.15 5-Day High 1,883.77 5-Day Low 1,845.61

2010 Div BR (%) (%)

Performance of SR Automobile and Parts Index

Company

High Low 1,863.42 1,828.40 Total cos Defaulter cos 36 6 P/BV (x) ROE (%) 3.08 35.00

% Change 1.21 5-Day High 836.88 5-Day Low 817.62

AUTOMOBILE AND PARTS

Performance of SR Chemicals Index

Company

Sui Northern Gas Pipelines Limited

Performance of SR Industrial Transportation Index

Close Change 1,568.56 14.26 Listed cap Market cap 65,194.15 mn 1,159,182.69 mn Payout (%) Div Yield (%) 55.94 5.18

CHEMICALS Open 1,848.33 Turnover 10,113,538 P/E (x) 8.81

Alert ! Unusual Movements

INDUSTRIAL TRANSPORTATION

Performance of SR Oil and Gas Index Open 1,554.31 Turnover 5,847,273 P/E (x) 10.79

KSE 30 Index

Open 960.74 Turnover 11,666 P/E (x) 6.08 Company Abbott (Lab) XD Ferozsons (Lab) GlaxoSmithKline Highnoon (Lab) Searle Pak

Paid up Cap(mn) 979 250 2019 182 306

High Low 966.36 958.80 Total cos Defaulter cos 9 P/BV (x) ROE (%) 1.36 22.31

Close 960.37 Listed cap 3,904.20 mn Payout (%) 44.54

Change -0.37 Market cap 31,635.80 mn Div Yield (%) 7.33

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

5.70 7.78 10.48 6.20 5.66

92.80 93.60 73.56 26.21 58.37

93.00 94.00 74.00 26.79 59.00

92.99 93.50 73.10 26.59 58.00

93.00 0.20 94.00 0.40 73.33 -0.23 26.79 0.58 58.01 -0.36

1094 2030 4741 603 3197

94.70 99.49 90.00 33.50 66.15

83.00 88.21 70.60 24.51 58.00

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

% Change -0.04 5-Day High 970.93 5-Day Low 960.37 2011 Div BR (%) (%)

20B 12.50 15B 10B -

-

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

50.50

Total Assets (Rs in mn)

MA (10-day)

7.97

Total Equity (Rs in mn)

MA (100-day)

8.01

Revenue (Rs in mn)

MA (200-day)

6.15

Interest Expense

4,722.15

1st Support

8.04

Profit after Taxation

77.49

2nd Support

7.84

EPS 10 (Rs)

2.934

1st Resistance

8.40

Book value / share (Rs)

15.37

2nd Resistance

8.56

PE 11 E (x)

0.29

Pivot

8.20

PBV (x)

0.54

406.03 4,642.45 259.31

SAIF closed up 0.300 at 8.300. Volume was 86 per cent below average (consolidating) and Bollinger Bands were 60 per cent narrower than normal. The company's profit after taxation stood at Rs566.164 million which translates into an Earning Per Share of Rs21.44 for the nine months of fiscal year (9MFY11).

SAIF is currently 38.6 per cent above its 200-day moving average and is in 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 SAIF at a relatively equal pace.

Trend forecasting oscillators are currently bearish on SAIF.

JS Investments Limited

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

52.48

Total Assets (Rs in mn)

1,734.61

MA (10-day)

5.59

Total Equity (Rs in mn)

428.07

MA (100-day)

5.70

Revenue (Rs in mn)

415.69

MA (200-day)

6.03

Interest Expense

127.40

1st Support

5.52

Profit after Taxation

2nd Support

5.42

EPS 10 (Rs)

1st Resistance

5.70

Book value / share (Rs)

2nd Resistance

5.78

PE 11 E (x)

Pivot

5.60

PBV (x)

45.45 0.455 4.28 46.58 1.31

JSIL closed down -0.02 at 5.59. Volume was 69 per cent below average (consolidating) and Bollinger Bands were 40 per cent narrower than normal. The company's profit after taxation stood at Rs8.673 million which translates into an Earning Per Share of Rs0.09 for the nine months of fiscal year (9MFY11).

JSIL is currently 7.3 per cent below its 200-day moving average and is displaying an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into JSIL (bullish). Trend forecasting oscillators are currently bullish on JSIL.

BOOK CLOSURES Company

From

To

Invest Cap Inv Bank Sui Northern Gas Pipelines # Mehran Sugar Mills United Bank # Kohinoor Sugar Mills # Cap Assets Leasing Corp # United Brands # New Jublee Insurance # Premier Insurance # Fateh Industries # Media Times # Berger Paints # Climax Engineering # First Cap Sec Corp # Shezan International JDW Sugar Mills Honda Atlas Cars Emco Industries # Mari Gas Searle Pakistan # Chakwal Spinning Mills # Atlas Income Fund

17-Jun 17-Jun 17-Jun 17-Jun 17-Jun 17-Jun 18-Jun 18-Jun 20-Jun 21-Jun 21-Jun 21-Jun 21-Jun 21-Jun 23-Jun 23-Jun 23-Jun 23-Jun 24-Jun 24-Jun 25-Jun 01-Jul

24-Jun 23-Jun 23-Jun 24-Jun 23-Jun 25-Jun 24-Jun 24-Jun 27-Jun 27-Jun 28-Jun 27-Jun 29-Jun 28-Jun 30-Jun 30-Jun 30-Jun 30-Jun 30-Jun 30-Jun 02-Jul 07-Jul

D/B/R

Spot AGM/Date

7.5(II),10(B)(I) 10(R) 10(II) -

24-Jun 23-Jun 24-Jun 23-Jun 25-Jun 24-Jun 24-Jun 27-Jun 27-Jun 28-Jun 27-Jun 29-Jun 28-Jun 29-Jun 30-Jun 30-Jun 30-Jun 02-Jul -

INDICATIONS # Extraordinary General Meeting

OTHER SECTORS Symbols Pakistan Cables TRG Pakistan Ltd. Murree Brewery Co. Shifa Int.Hospital P.I.A.C.(A) AKD Capital Limited Pace (Pak) Ltd. Netsol Technologies

Open 47.27 2.7 109.05 32.52 2.33 37.81 2.6 22

High 47.5 2.79 113.95 33 2.35 38.99 2.72 22.18

Low Close 45.57 2.65 109.02 33 2.25 38 2.55 21.9

47.27 2.68 111.01 32.52 2.25 38 2.68 21.95

Change 0 -0.02 1.96 0 -0.08 0.19 0.08 -0.05

Vol 256 121111 1272 101 100113 689 291180 86709

7

Friday, June 17, 2011 Ask Gen Insurance

FIXED LINE TELECOMMUNICATION

Atlas Insurance

Performance of SR Fixed Line Telecommunication Index Open 989.56 Turnover 949,002 P/E (x) 4.87 Paid up Cap(mn)

Company

High Low 996.35 974.13 Total cos Defaulter cos 5 P/BV (x) ROE (%) 0.62 12.84

PE

Open

High

Low

Close Chg

Pak Datacom 78 32.21 Pak.Telecomm Co A XD 37740 12.54 Telecard 3000 2.95 WorldCall Tele 8606 Wateen Telecom Ltd 6175 -

34.50 15.39 1.74 2.14 2.51

34.00 15.40 1.78 2.33 2.45

33.50 15.15 1.70 2.12 2.38

33.50 15.30 1.74 2.20 2.40

Close 985.86 Listed cap 50,077.79 mn Payout (%) 62.56

Volume

-1.00 -0.09 0.00 0.06 -0.11

3500 716075 4540 224887 269947

Change -3.70 Market cap 61,902.06 mn Div Yield (%) 12.86

% Change -0.37 5-Day High 1,011.49 5-Day Low 985.86

Last 60 days High Low

2010 Div BR (%) (%)

50.00 17.83 2.00 2.89 3.20

80 17.5 1 -

28.71 15.15 1.40 1.94 2.38

2011 Div BR (%) (%)

- 15.00 -

-

Central Insurance Century Insurance EFU General Insurance Habib Insurance IGI Insurance Pak Reinsurance Premier Insurance

280

3.59

9.60

9.99

9.50

9.61 0.01

500

443

3.49

28.20

28.29

28.05

28.05 -0.15

391 1.48 457 4.83 1250 13.81 450 7.83

68.00 8.48 37.34 11.27

69.00 8.70 37.85 11.25

68.00 8.10 37.00 11.20

68.01 8.69 37.00 11.27

0.01 0.21 -0.34 0.00

Paid up Cap(mn)

PE

Open

High

Low

198 11572 1560 7932 1695 126 8803 Nishat Chunian Power Ltd XD 3673 Nishat Power Ltd 3541 Sitara Energy Ltd 191 Southern Electric 1367

7.63 5.12 2.47 5.54 2.65 2.31 5.96 -

0.59 37.77 1.28 2.31 16.95 3.17 42.94 15.21 16.25 21.30 1.40

0.63 38.25 1.39 2.51 17.00 3.25 43.30 15.20 16.46 21.50 1.44

0.56 37.70 1.30 2.30 16.95 3.00 42.67 14.70 16.06 20.71 1.35

Company Genertech Hub Power Japan Power KESC Kohinoor Energy Kohinoor Power Kot Addu Power

Close 1,363.09 Listed cap 95,369.29 mn Payout (%) 104.13

Change 8.78 Market cap 105,419.93 mn Div Yield (%) 7.67

Close Chg

Volume

Last 60 days High Low

0.56 38.02 1.36 2.43 16.95 3.19 43.18 14.75 16.17 21.50 1.36

1001 534652 4013 624821 322 10529 38127 1637415 304036 42711 80323

0.80 38.50 1.70 2.87 18.25 4.25 44.19 17.25 17.75 23.26 1.98

-0.03 0.25 0.08 0.12 0.00 0.02 0.24 -0.46 -0.08 0.20 -0.04

0.49 36.60 0.97 2.25 15.41 2.11 40.65 14.70 15.52 15.35 1.13

% Change 0.65 5-Day High 1,363.09 5-Day Low 1,354.31

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

7.8R -

2011 Div BR (%) (%) 25.00 10.00 30.00 10.00 -

29.25

26.00

1880 2500 10540 108

115.90 10.85 39.65 16.05

65.00 8.00 29.01 11.00

Paid up Cap(mn)

Company Sui North Gas Sui South Gas

High Low 1,464.69 1,414.00 Total cos Defaulter cos 2 P/BV (x) ROE (%) 1.05 11.41

Change 22.18 Market cap 31,627.15 mn Div Yield (%) 7.29

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

5491 16.77 8390 5.04

22.70 22.42

23.60 22.59

22.40 22.20

23.48 0.78 22.33 -0.09

1899917 46190

23.60 25.30

17.64 20.52

% Change 1.55 5-Day High 1,452.69 5-Day Low 1,428.92

2010 Div BR (%) (%) 20 15

2011 Div BR (%) (%)

25B

-

-

BANKS Performance of SR Banks Index Open 1,153.32 Turnover 5,055,848 P/E (x) 7.25 Paid up Cap(mn)

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

8603 7070 13492 8786 5004 5288 5280 7327 11021 Habib Metropolitan Bank XB 10478 JS Bank Ltd 8150 KASB Bank Ltd 9509 MCB Bank Ltd XD 8362 Mybank Ltd 5304 National Bank 16818 Network Mic Bank 300 NIB Bank XR 40437 Samba Bank 14335 Silkbank Ltd 26716 Soneri Bank 6023 Stand Chart Bank 38716 Summit Bank Ltd 7251 United Bank Ltd 12242

PE

Open

6.41 65.54 5.39 11.93 5.32 10.18 6.10 28.90 2.21 4.85 7.12 10.35 3.60 7.53 9.95 7.38 118.85 5.40 18.70 53.20 2.65 1.44 8.29 203.93 3.16 4.08 52.07 3.40 1.72 23.13 1.84 17.44 2.82 2.72 5.51 6.77 8.40 4.41 7.47 63.35

High

High Low Close 1,167.28 1,146.05 1,154.64 Total cos Defaulter cos Listed cap 27 - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.01 13.94 40.49 Low

Close Chg

Volume

66.45 64.10 64.95 -0.59 12.00 11.80 11.86 -0.07 10.30 10.10 10.11 -0.07 29.09 28.75 28.80 -0.10 5.10 4.71 4.95 0.10 7.20 7.02 7.06 -0.06 3.85 3.57 3.83 0.23 10.06 9.90 9.94 -0.01 118.95 118.00 118.12 -0.73 18.97 18.75 18.79 0.09 2.78 2.56 2.66 0.01 1.55 1.45 1.46 0.02 206.25 203.00 205.11 1.18 3.25 3.10 3.10 -0.06 52.95 51.82 51.90 -0.17 3.35 3.30 3.30 -0.10 1.78 1.66 1.71 -0.01 1.85 1.85 1.85 0.01 2.87 2.78 2.79 -0.03 5.50 5.30 5.44 -0.07 9.10 8.40 8.40 0.00 4.49 4.21 4.25 -0.16 63.90 63.22 63.54 0.19

Change 1.32 Market cap 680,632.51 mn Div Yield (%) 5.59

Last 60 days High Low

6530 68.99 43759 12.99 437749 11.20 122313 30.65 20609 6.25 1571000 7.35 100600 4.18 42368 12.50 42830 126.80 819 20.50 14728 3.00 232078 1.77 240650 210.95 58739 3.60 529914 58.10 22000 3.50 425160 2.17 5000 2.20 421945 3.06 678101 6.99 6098 9.75 242461 4.75 32858 65.50

58.50 10.90 9.50 28.25 4.05 4.51 3.31 9.00 104.16 17.00 2.06 1.16 195.00 1.60 49.57 0.80 1.47 1.63 2.02 5.30 7.90 2.36 59.17

% Change 0.11 5-Day High 1,162.55 5-Day Low 1,153.32

2010 Div BR (%) (%)

NON LIFE INSURANCE Performance of SR Non Life Insurance Index Open 761.03 Turnover 442,723 P/E (x) 9.54 Paid up Cap(mn)

Company

Adamjee Insurance XD

1237

High Low 764.09 750.06 Total cos Defaulter cos 34 22 P/BV (x) ROE (%) 0.50 5.20

Close 754.87 Listed cap 11,111.34 mn Payout (%) 79.54

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

7.13

66.94

66.90

66.17

66.44 -0.50

34069

75.24

62.00

% Change -0.81 5-Day High 769.15 5-Day Low 754.87

2010 Div BR (%) (%) 25

2011 Div BR (%) (%)

-

-

-

-

-

-

55B 10.00

-

67.00

67.60 -2.80

11100

103.00

65.10

30

349673 282

30 25

5.88 3.75

16.99 8.40

17.15 8.59

16.75 8.20

16.93 -0.06 8.40 0.00

20.80 13.27

12.43 8.00

-

-

-

284 291 496

4.21 0.96 1.81

6.90 5.40 5.70

6.90 5.50 5.22

6.90 5.48 5.22

6.90 0.00 5.50 0.10 5.22 -0.48

1998 500 2000

8.25 7.49 8.49

5.76 4.56 4.23

- 12.5B - 15B - 24B

-

-

Universal Insurance

263

-

2.05

2.00

2.00

2.00 -0.05

23682

3.42

1.32

-

-

-

-

LIFE INSURANCE Performance of SR Life Insurance Index Open 950.44 Turnover 1,956 P/E (x) 5.34 Paid up Cap(mn)

Company

EFU Life Assurance New Jub Life Insurance

PE

Open

850 9.87 627 15.11

70.76 58.00

High Low 943.53 935.25 Total cos Defaulter cos 4 P/BV (x) ROE (%) 3.89 3.85

Close 937.41 Listed cap 2,290.72 mn Payout (%) 355.53

Change -13.03 Market cap 10,394.28 mn Div Yield (%) 3.51

High

Low

Close Chg

Volume

Last 60 days High Low

70.98 56.20

70.00 56.20

70.28 -0.48 56.20 -1.80

357 1500

73.25 58.75

50.70 44.00

% Change -1.37 5-Day High 950.44 5-Day Low 936.18

2010 Div BR (%) (%) 50 15

-

2011 Div BR (%) (%) -

-

FINANCIAL SERVICES Performance of SR Financial Services Index Open 301.91 Turnover 1,996,722 P/E (x) 11.56 Paid up Cap(mn)

High Low 306.94 294.88 Total cos Defaulter cos 41 6 P/BV (x) ROE (%) 0.20 0.91

PE

Open

High

Low

225 1.10 360 5.61 450 17.55 3750 3.27 250 First Credit & Invest Bank Ltd 650 First National Equity 575 IGI Investment Bank 2121 9.21 Invest and Fin Sec 600 21.35 Invest Bank 2849 Ist Cap Securities 3166 Ist Dawood Bank 626 0.65 Jah Siddiq Co 7633 JOV and CO 508 JS Global Cap 500 5.75 JS Investment 1000 46.58 KASB Securities 1000 Orix Leasing 821 3.58 Pervez Ahmed Sec 775 5.93 Saudi Pak Leasing 452 Sec Inv Bank 514 4.25 Stand Chart Leasing 978 3.52

0.51 21.03 16.53 24.54 1.35 5.49 2.50 1.72 7.75 0.40 2.82 1.52 7.67 3.11 20.26 5.61 3.56 5.91 1.68 0.70 2.20 2.88

0.55 22.00 17.00 24.65 1.49 4.75 2.89 1.80 7.90 0.47 3.04 1.50 7.71 3.15 20.49 5.68 3.68 6.15 1.74 0.70 1.89 2.75

0.27 21.90 16.62 23.97 1.30 4.75 2.89 1.75 7.52 0.36 2.72 1.45 7.43 3.00 19.76 5.50 3.50 5.85 1.63 0.67 1.70 2.75

AMZ Ventures Arif Habib Investments Arif Habib Limited Arif Habib Corp Dawood Equities

Close Chg

Close 298.48 Listed cap 30,336.44 mn Payout (%) 99.56

Volume

Change -3.44 Market cap 14,605.42 mn Div Yield (%) 4.61

0.53 22.00 16.67 24.41 1.30 4.75 2.89 1.75 7.90 0.46 2.72 1.46 7.53 3.02 20.00 5.59 3.51 5.91 1.66 0.70 1.70 2.50

0.02 0.97 0.14 -0.13 -0.05 -0.74 0.39 0.03 0.15 0.06 -0.10 -0.06 -0.14 -0.09 -0.26 -0.02 -0.05 0.00 -0.02 0.00 -0.50 -0.38

9047 51571 7821 892889 10001 500 950 11500 2000 130320 7549 9000 1371428 138628 2759 32401 9928 117 136881 1618 43200 20002

% Change -1.14 5-Day High 309.94 5-Day Low 298.48

Last 60 days High Low

2010 Div BR (%) (%)

0.69 24.97 21.20 26.15 1.99 6.10 5.35 2.25 9.29 1.20 3.67 1.96 8.78 3.83 23.10 6.43 4.89 6.15 2.00 1.30 4.00 3.20

30 11.5 10 50 -

0.27 20.84 12.01 20.53 1.15 3.10 1.56 1.61 5.15 0.22 2.45 1.26 4.82 2.31 16.42 4.53 3.10 5.00 1.45 0.60 1.31 2.10

20B 20B 10B -

2011 Div BR (%) (%) - 140R -

EQUITY INVESTMENT INSTRUMENTS Performance of SR Equity Investment Instruments Index Open 1,525.08 Turnover 606,309 P/E (x) 18.00 Paid up Cap(mn)

Company

PE

Open 6.50

Low

525

1.29

0

3.57

0.53

0.53

0.50

0.50 -0.03

5501

0.84

0.30

1.2

-

-

-

113

3.75

2.75

2.89

2.89

2.70 -0.05

15126

3.40

2.30

5

-

-

-

524

-

1.22

-

-

-

-

2.74

2.40

2.31

2.31 -0.43

2198

3.05

1.51

-

-

-

-

2.10

2.20

1.84

2.10 0.00

499

2.47

1.82

-

-

-

-

3.40

3.36

3.40 -0.05

13157

3.95

17

-

8.39

8.48

7.00

11

8.19

8.00

7.62

7.70 -0.49

36090

8.44

7.25

21

-

-

-

2.35

1.60

1.75

1.11

1.60 0.00

301

2.45

1.11

3

-

-

-

6.28

6.40

6.20

6.21 -0.07

7.45

-

-

-

5.00

-

5.01

10

9.40

9.02

9.02

9.02 -0.38

500

10.19

8.46

15.5

-

-

-

-

0.75

1.00

0.81

0.82 0.07

695

1.50

0.45

3

-

-

-

4.26

1.04

1000

-

6.31

7.29

6.75

7.18 0.87

6.68

12.5

0.57 2.59

125 1000

17500

5.87

1186 1200

Pak Oman Advantage

5.40 -0.24

83203

JS Value Fund

PICIC Energy Fund

5.40

-

Meezan Balanced Fund Pak Modaraba

5.68

-

-

8.40

3.99

202

5.64

-

-

397 1008

2.13

1400

3.08

H B L Modaraba Habib Modaraba I B L Modaraba

3180

8.39 0.05

2.50

-

1.75

3.45

10384

-

1.26

8.34

1.48 0.07

2.2

300

4.11

1.35

6.11

581

2.25

1.50

2.91

First Capital Mutual F.

760

1.41

12000

First Dawood Mutual F. Golden Arrow

7.79

2.25 -0.05

6.94

2011 Div BR (%) (%)

200

2.16

100000

2010 Div BR (%) (%)

780

2.25

6.50 0.00

Last 60 days High Low

Volume

% Change -0.52 5-Day High 1,525.08 5-Day Low 1,505.14

Atlas Fund of Funds

2.30

6.45

Change -7.98 Market cap 19,233.08 mn Div Yield (%) 9.04

Crescent St Modaraba

2.34

6.50

Close Chg

Close 1,517.09 Listed cap 29,771.58 mn Payout (%) 104.74

B R R Guardian Mod.

Equity Modaraba

1.73

High

High Low 1,569.92 1,501.26 Total cos Defaulter cos 52 11 P/BV (x) ROE (%) 0.40 2.21

Elite Cap Modaraba

JS Growth Fund

Change -6.17 Market cap 46,269.02 mn Div Yield (%) 8.34

-

40

3000 303

2011 Div BR (%) (%)

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

20B

25 50B 10 12.5 25 12.5B

Reliance Insurance Silver Star Insurance United Insurance

Company

Close 1,452.69 Listed cap 12,202.80 mn Payout (%) 66.79

-

70.35

Performance of SR Gas Water and Multiutilities Index Open 1,430.51 Turnover 1,946,107 P/E (x) 9.16

-

70.40

-

GAS WATER AND MULTIUTILITIES

3869

-10B 25R

5.60

ELECTRICITY High Low 1,374.36 1,348.27 Total cos Defaulter cos 15 1 P/BV (x) ROE (%) 1.27 9.35

8.61

970

Performance of SR Electricity Index Open 1,354.31 Turnover 3,277,950 P/E (x) 13.57

12.49

500

9.75

-

10

-

- 10.00

-

-

2.18

7.50

8.25

7.36

7.39 -0.11

244996

8.25

6.92

PICIC Growth Fund

2835

2.72

13.13

13.29

13.00

13.23 0.10

18110

13.74

12.00

20

- 12.50

-

PICIC Inv Fund

2841

2.38

5.96

6.95

6.01

6.02 0.06

42575

6.95

5.11

10

-

-

7.50

-

Tri-Star 1st Modaraba

212 57.50

1.00

1.15

1.15

1.15 0.15

510

2.05

0.20

-

-

-

-

U D L Modaraba

264

7.00

6.99

6.71

6.99 -0.01

1042

7.25

5.70

12.5

-

7.50

-

2.39

UPTO 100 VOLUME Symbols GAMON HUSS UDPL ALICO SIEM PECO PMPK PPP NESTLE SHEZ AASM PIL ISTM SAPT GLPL PNGRS FPJM CHCC NSRM ULEVER EMCO BCL MDTL LATM FZTM BGL JKSM PMI UBDL HUSI IDRT JDMT KOHS RAVT BTL CWSM MODAM PSYL RMPL SCL STJT CRTM DATM GATI GRAYS IBLHL ISIL KASBM MUKT OLTM PTEC SING TRIBL UPFL

Open

High

0.70 10.66 14.66 16.51 982.13 91.99 194.84 42.47 3636.43 145.58 27.70 15.07 6.70 119.00 57.12 3.16 1.12 9.30 16.00 5265.20 2.00 49.75 17.30 6.11 299.00 2.00 6.50 0.83 27.48 3.81 4.70 15.00 4.42 1.00 65.08 1.22 0.90 18.96 2700.00 80.66 27.50 15.32 0.11 55.00 46.25 9.50 78.61 3.48 0.41 0.65 3.20 15.49 1.27 1410.00

1.06 11.20 14.01 16.57 985.00 89.50 204.00 41.60 3690.00 150.00 29.00 14.75 6.94 113.05 55.00 3.49 1.22 9.50 16.99 5280.00 2.15 47.27 18.00 5.15 308.99 2.25 6.01 0.94 28.26 4.39 5.28 14.11 4.75 1.01 67.23 1.44 1.18 18.95 2719.49 84.69 28.75 15.12 0.13 54.01 47.40 9.98 74.68 2.65 0.45 0.84 3.34 16.37 1.39 1440.00

Low

Close

1.06 11.19 14.01 16.57 965.01 88.00 187.25 41.51 3646.00 150.00 29.00 14.07 6.94 113.05 54.38 3.49 0.81 9.16 16.99 5222.22 2.15 47.27 16.30 5.15 284.50 1.85 6.01 0.82 28.26 4.39 5.00 14.02 3.42 0.95 63.01 0.76 1.18 18.05 2652.00 84.69 26.26 15.12 0.13 54.01 47.40 9.98 74.68 2.65 0.45 0.84 3.34 16.37 1.39 1440.00

0.70 10.66 14.66 16.51 981.08 91.99 194.84 42.47 3679.29 145.58 27.70 15.07 6.70 119.00 57.12 3.16 1.12 9.30 16.00 5255.83 2.00 49.75 17.30 6.11 299.00 2.00 6.50 0.83 27.48 3.81 4.70 15.00 4.42 1.00 65.08 1.22 0.90 18.96 2700.00 84.69 27.50 15.32 0.11 55.00 46.25 9.50 78.61 3.48 0.41 0.65 3.20 15.49 1.27 1410.00

Change

Vol

0.00 0.00 0.00 0.00 -1.05 0.00 0.00 0.00 42.86 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -9.37 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

100 100 100 99 82 71 71 53 51 50 35 22 20 18 17 15 14 13 13 12 10 9 9 8 6 5 5 5 5 4 3 3 3 3 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1

FUTURE CONTRACTS Low

Close

212.46

218.70

211.25

218.07

5.61

607500

ENGRO-JUN 184.39

Symbols

184.25

180.10

180.80

-3.59

408500

ATRL-JUN

129.01

126.40

127.42

-1.62

367500

63.60

-0.39

302000

PPL-JUN

UBL-JUN PTC-JUN POL-JUN

Open

High

129.04 63.99

67.00

63.10

Change

15.41

15.41

15.25

15.41

355.31

355.35

352.11

354.62

-0.69

213000

DGKC-JUN

23.43

23.50

23.30

23.40

-0.03

190500

NML-JUN

55.96

55.85

55.50

55.58

-0.38

80500

FFC-JUN

144.77

146.00

143.50

145.25

0.48

60000

NBP-JUN

52.28

52.55

52.01

52.06

-0.22

56000

FFBL-JUN

42.32

42.59

42.02

42.52

0.20

204.45

207.00

203.70

206.00

1.55

44000

71.00

71.88

71.30

71.71

0.71

27500

MCB-JUN LUCK-JUN

0.00

Vol

247500

44500

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

Total Volume 931,027 20,825 126,506 210,400 89,200 1,151,065 603,298 314,550 67,500 141,955 87,500 3,864,154 48,999 30,400 673,316 348,581 454,042 2,000 315,350 31,210 81,158 70,954 6,749 3,000 10,000 9,683,739

Total Value 16,458,916 1,034,146 1,130,017 940,024 8,597,037 8,833,888 10,589,764 43,297,509 2,149,793 15,391,458 2,829,281 42,644,057 2,625,811 4,659,212 26,306,244 6,378,139 18,958,499 231,772 3,976,990 8,235,707 12,982,212 14,879,752 78,666 50,639 474,490 253,734,024

MTS Rate 17.91 18.95 16.00 17.11 15.00 19.48 15.00 16.13 16.00 15.00 16.05 16.71 17.19

BOARD MEETINGS

Pakistan Petroleum Ltd

KSE 100 INDEX

Fauji Fertiliser Bin Qasim Ltd

Engro Corporation

Company

Date

Time

Attock Petroleum Ltd Fauji Cement Company Ltd Dynea Pakistan Ltd

20-Jun 21-Jun 22-Jun

1:00 10:30 10:00

TECHNICAL LEVELS Company Al-Abbas Cement

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position

62.99

Support 1

12,314.80

MA (5-day)

12,351.07

Support 2

12,260.45

MA (10-day)

12,321.61

Resistance 1

12,404.45

MA (100-day)

11,973.83

Resistance 2

Target Price

Arif Habib Ltd

254.9

TFD Research

246.65

Recommendations Buy

Arif Habib Ltd

Positive

AKD Securities Ltd TFD Research

Technical Outlook Technical Analysis

Leverage Position

12,439.75

RSI (14-day) 63.59 MTS Shares `000 81.158 MA (200-day) 11,480.79 Pivot 12,350.10 MA (10-day) 212.38 MTS Rs `000 12,982.21 208.63 MTS Rate 16.05 KSE 100 INDEX closed up 51.97 points at 12369.12. Volume was MA (100-day) MA (200-day) 204.38 ** NOI Rs (mn) 120.44 45 per cent below average and Bollinger Bands were 28 per cent Free Float Shares (mn) 247.73 Free Float Rs (mn) 53,923.66 narrower than normal. As far as resistance level is concern, the marTarget price for Dec-11 & **Net Open Interest in future market ket will see major 1st resistance level at 12,404.45 and 2nd resistPPL closed up 6.12 at 217.67. Volume was 306 per cent above averance level at 12,439.75, while Index will continue to find its 1st supage (trending) and Bollinger Bands were 38 per cent narrower than port level at 12,314.80 and 2nd support level at 12,260.45.

KSE 100 INDEX is currently 7.4 per cent above its 200-day moving normal. average and is displaying an upward trend. Volatility is relatively nor- PPL is currently 6.5 per cent above its 200-day moving average and mal as compared to the average volatility over the last 10 trading is displaying an upward trend. Volatility is extremely high when comsessions. Volume indicators reflect moderate flows of volume into pared to the average volatility over the last 10 trading sessions.

INDEX (mildly bullish). Trend forecasting oscillators are currently Volume indicators reflect moderate flows of volume into PPL (mildly bullish on INDEX. bullish). Trend forecasting oscillators are currently bullish on PPL.

Pakistan Telecommunication Co Ltd

Fauji Fertiliser Co

Brokerage House

Target Price

Recommendations

Brokerage House

Hold

Arif Habib Ltd

AKD Securities Ltd

120.7

Reduce

AKD Securities Ltd

TFD Research

129.4

Negative

TFD Research

Arif Habib Ltd

144

Brokerage House

Target Price

Recommendations

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

44.91

66.10

65.75

66.85

67.25

66.50

Askari Bank

48.10

11.80

11.70

12.00

12.10

11.90

Azgard Nine

50.53

6.35

6.25

6.60

6.80

Attock Petroleum

48.71

378.70

376.95

382.45 384.45 380.70 128.55 130.15 127.30

6.50

BankIslami Pak

55.02

Bank.Of.Punjab

65.95

Dewan Cement

56.14

1.90

1.85

2.00

2.05

1.95

D.G.K.Cement

47.55

23.15

23.00

23.45

23.60

23.30

Dewan Salman

59.40

2.95

2.85

3.10

3.15

Dost Steels Ltd

52.21

2.10

2.05

2.20

2.25

Technical Analysis

Neutral

Leverage Position

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

47.54 MTS Shares `000 67.500 43.19 MTS Rs `000 2,149.79 41.51 MTS Rate 0.00 37.16 ** NOI Rs (mn) 23.73 Free Float Shares (mn) 326.94 Free Float Rs (mn) 13,891.62 Target price for Dec-11 & **Net Open Interest in future market

ENGRO closed down -3.54 at 180.05. Volume was 7 per cent above aver- FFBL closed up 0.26 at 42.49. Volume was 73 per cent below average (consolidating) and Bollinger Bands were 24 per cent narrower than normal.

3.65 7.00

3.45 6.90

10.25 3.95 7.15

10.35 4.05 7.25

10.15 3.75 7.10

3.00 2.15

EFU General Insurance 54.69

36.70

36.45

37.55

38.15

37.30

EFU Life Assurance

69.94

69.85

69.45

70.85

71.40

70.40

Engro Corp

30.06

178.50

176.95

Faysal Bank

49.37

Fauji Cement

51.58

9.90 4.40

9.80 4.35

182.75 185.45 181.20 10.05

10.15

9.95

4.50

4.55

4.45

42.75

43.00

42.35

Fauji Fert Bin

47.68

42.10

41.70

ENGRO is currently 7.3 per cent below its 200-day moving average and is FFBL is currently 14.3 per cent above its 200-day moving average and is

Fauji Fertilizer

58.64

143.45

141.95

in a downward trend. Volatility is extremely high when compared to the displaying an upward trend. Volatility is extremely high when compared to

Habib Bank Ltd

43.92

average volatility over the last 10 trading sessions. Volume indicators the average volatility over the last 10 trading sessions. Volume indicators

Hub Power

58.57

37.75

37.45

reflect volume flowing into and out of ENGRO at a relatively equal pace. reflect moderate flows of volume into FFBL (mildly bullish). Trend forecast-

ICI Pakistan

45.88

153.90

152.50

157.30 159.30 155.90

Trend forecasting oscillators are currently bearish on ENGRO.

Indus Motors

69.70

224.55

221.05

229.75 231.45 226.25

J.O.V.and CO

53.11

2.95

2.90

3.10

3.20

3.05

Japan Power

55.84

1.30

1.25

1.40

1.45

1.35

JS Bank Ltd

52.51

2.55

2.45

2.80

2.90

2.65

Jah Siddiq Co

44.21

7.40

7.30

7.70

7.85

7.55

ing oscillators are currently bullish on FFBL.

Pakistan Oilfields Ltd

Dera Ghazi Khan Cement Co Ltd

Brokerage House

Target Price

Recommendations

Brokerage House

Target Price

Recommendations

359

Hold

Buy

30.1

Buy

Arif Habib Ltd

Buy

AKD Securities Ltd

28.72

Buy

AKD Securities Ltd

322.42

Neutral

Positive

TFD Research

36.45

Positive

TFD Research

363.65

Neutral

Leverage Position

16.75

Adamjee Insurance

9.95

24.7

Technical Analysis

24.35

17.15

10.05

23.91 25.8

52.90

25.00

16.90

43.21

44.25

age and Bollinger Bands were 22 per cent narrower than normal.

53.15

24.70

16.40

Bank Al-Falah

Technical Outlook 314.550 43,297.51 17.11 234.32 31,864.87

53.10

23.65

16.50

Accumulate

TFD Research

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

52.65

24.05

49.77

124.45

45.52

29.91 187.68 203.56 194.21 Free Float Shares (mn) 176.98

52.85

56.25

Arif Habib Limited

125.70

AKD Securities Ltd

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

65.15

45.95

Arif Habib Corp

44.30

Neutral Positive

67.50

Attock Cement

Attock Refinery

Arif Habib Ltd

Leverage Position

66.25

Hold

Buy

245.4

62.80

42.2

224

Technical Outlook

63.90

Recommendations

Recommendations

195.41

1st 2nd Pivot Resistance 2.80 2.90 2.75

58.91

Target Price

Target Price

Technical Analysis

Arif Habib Ltd

Technical Outlook

Technical Outlook

Brokerage House

RSI 1st 2nd (14-day) Support 47.40 2.65 2.60

Allied Bank Limited

Technical Outlook

Technical Outlook Technical Analysis

Leverage Position

Technical Analysis

Leverage Position

117.75

38.30

51.53 52.25

2.30

2.20

2.50

2.60

2.40

39.12

14.50

14.45

14.70

14.75

14.60

Lucky Cement

48.65

70.85

70.25

71.85

72.25

71.25

MCB Bank Ltd

49.57

203.35

201.55

Maple Leaf Cement

48.32

2.25

2.20

2.40

2.50

2.35

National Bank

40.63

51.50

51.10

52.60

53.35

52.20

Nishat (Chunian)

38.01

24.15

24.05

24.45

24.60

24.30

Netsol Technologies

53.04

21.85

21.75

22.10

22.30

22.00

NIB Bank

47.36

Nimir Ind.Chemical

49.93

Nishat Mills

32.59

55.20

54.85

Oil & Gas Dev. XD

63.76

154.85

153.65

PACE (Pakistan) Ltd.

42.57

2.60

2.50

47.02

1.60

1.60 2.60

1.55

43.70

38.00

Lotte Pakistan

2.65

43.45

38.55

K.E.S.C

1.65

42.40

118.70 119.30 118.35

Kot Addu Power

Pervez Ahmed Sec

42.80

117.40

146.05 147.15 144.55

43.05

206.60 208.05 204.80

1.75

1.80

1.70

2.75

2.80

2.70

55.85

56.25

55.55

156.85 157.65 155.65 2.75 1.75

2.80 1.80

2.65 1.70

P.I.A.C.(A)

39.58

2.25

2.20

2.35

2.40

2.30

Pioneer Cement

44.32

4.80

4.25

6.05

6.75

5.50

Pak Oilfields

67.43

351.75

349.95

354.90 356.25 353.10

Pak Petroleum

63.36

212.85

208.00

220.40 223.10 215.55

Pak Suzuki

52.46

67.90

67.20

P.S.O. XD

49.14

277.70

274.35

P.T.C.L.A

21.45

15.15

15.05

FFC closed up 0.77 at 144.90. Volume was 54 per cent below average (con- PTC closed down -0.09 at 15.30. Volume was 51 per cent below average DGKC closed down -0.03 at 23.29. Volume was 68 per cent below average POL closed down -0.55 at 353.58. Volume was 58 per cent below average

Shell Pakistan

54.98

222.50

221.75

Sui North Gas

84.40

22.70

21.95

23.90

24.35

23.15

Sitara Peroxide

45.60

17.45

17.35

17.75

17.90

17.65

Sui South Gas

48.39

22.15

22.00

22.55

22.75

22.35

Volume indicators reflect moderate flows of volume into FFC (mildly bull-

(consolidating) and Bollinger Bands were 142 per cent wider than normal. (consolidating) and Bollinger Bands were 31 per cent narrower than normal. (consolidating) and Bollinger Bands were 60 per cent wider than normal.

PTC is currently 16.1 per cent below its 200-day moving average and is in DGKC is currently 11.1 per cent below its 200-day moving average and is POL is currently 19.8 per cent above its 200-day moving average and is a downward trend. Volatility is extremely high when compared to the averdisplaying an upward trend. Volatility is low as compared to the average displaying an upward trend. Volatility is extremely high when compared to age volatility over the last 10 trading sessions. Volume indicators reflect volatility over the last 10 trading sessions. Volume indicators reflect volume the average volatility over the last 10 trading sessions. Volume indicators volume flowing into and out of PTC at a relatively equal pace. Trend forecasting oscillators are currently bearish on PTC. Momentum oscillator is flowing into and out of DGKC at a relatively equal pace. Trend forecasting reflect very strong flows of volume into POL (bullish). Trend forecasting

ish). Trend forecasting oscillators are currently bullish on FFC.

currently indicating that PTC is currently in an oversold condition.

Technical Analysis

Leverage Position

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

58.71 MTS Shares `000 141.955 144.12 MTS Rs `000 15,391.46 138.74 MTS Rate 15.00 126.99 ** NOI Rs (mn) 44.00 Free Float Shares (mn) 466.49 Free Float Rs (mn) 67,594.02 Target price for Dec-11 & **Net Open Interest in future market solidating) and Bollinger Bands were 55 per cent narrower than normal.

FFC is currently 14.1 per cent above its 200-day moving average and is displaying an upward trend. Volatility is Volatility is extremely high when compared to the average volatility over the last 10 trading sessions.

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

21.15 MTS Shares `000 6.749 16.46 MTS Rs `000 78.67 17.36 MTS Rate 0.00 18.24 ** NOI Rs (mn) 7.82 Free Float Shares (mn) 585.06 Free Float Rs (mn) 8,951.42 Target price for Dec-11 & **Net Open Interest in future market

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

47.80 MTS Shares `000 603.298 23.87 MTS Rs `000 10,589.76 24.55 MTS Rate 16.00 26.19 ** NOI Rs (mn) 107.86 Free Float Shares (mn) 200.80 Free Float Rs (mn) 4,676.74 Target price for Dec-11 & **Net Open Interest in future market

oscillators are currently bullish on DGKC .

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

67.57 MTS Shares `000 31.210 351.88 MTS Rs `000 8,235.71 325.13 MTS Rate 15.00 295.15 ** NOI Rs (mn) 220.45 Free Float Shares (mn) 107.95 Free Float Rs (mn) 38,169.33 Target price for Dec-11 & **Net Open Interest in future market

oscillators are currently bullish on POL.

69.65

70.70

68.95

283.70 286.35 280.35 15.40

15.55

15.30

223.75 224.25 223.00

Telecard

50.84

1.70

1.65

1.80

1.85

TRG Pakistan

46.80

2.65

2.55

2.75

2.85

2.70

United Bank Ltd

48.45

63.20

62.85

63.90

64.25

63.55

WorldCall Tele

49.71

2.10

2.00

2.30

2.45

2.20

1.75

8

Friday, June 17, 2011

Elaf gets Islamic banking licence from Bank Negara

HSBC expects record sukuk mandates

Islamic finance seen at $2tn in five-yr DEL NORTE: Filipinos crowd a lone ATM to withdraw cash from a bank at Sindangan township, Zamboanga Del Norte. Reuters

Qatar's Islamic lenders struggle to lure deposits DUBAI: Four months after Qatar's controversial order for conventional banks to close their Islamic units, the decision may be proving less positive than expected for purely Islamic lenders.

Despite February's ruling from the Qatar central bank, it seems many customers remain unconvinced of the advantages of moving away from deposit accounts managed by nonIslamic institutions and are instead staying loyal to conventional lenders.

"One of the concerns that depositors have is whether they will have the same level of customer service and conveniences available at established conventional banks," said Mahin Dissanayake, director at Fitch Ratings.

"It still may be a bit early to say definitively, but it's definitely possible that Islamic banks will see less of a benefit than they thought in February."

In its surprise order, the Qatar central bank told conventional banks to close their Islamic operations amid worries of an overlap between the two types of business. Lenders were given until Dec. 31 to comply.

Islamic banks such as Masraf Al Rayan and Qatar Islamic Bank saw their shares surge

following the announcement on anticipation of a blanket rollover of Islamic liquidity into sharia-compliant institutions.

Banks seen as possibly negatively affected by the move included Doha Bank Commercial Bank of Qatar Al Ahli Commercial Bank and International Bank of Qatar.

Ratings firm Moody's predicted in February that conventional banks would lose between 8 percent and 16 percent of their deposit base, total assets and profits to Islamic institutions as a result of the central bank's decision.

Yet conventional banks have responded by offering customers the option of converting Islamic deposits into conventional accounts and have seen some success.

"At this point, we'll speak with our customers. It's an issue of customer choice and if they choose to maintain their relationship with HSBC on the conventional side, then we'll help them with this," said Razi Fakih, deputy chief executive of HSBC Amanah, the Islamic arm of HSBC. HSBC Amanah opened its doors in Qatar amid much fanfare last year, only to have to shutter its Islamic operations a

few months later.

One banker, who asked not to be identified, said some Islamic customers in Qatar were confused by the turn of events and having switched to the international bank were unwilling to go back to a local Islamic institution.

Qatar National Bank with Islamic finance representing 11.6 percent of its total assets, will also support Islamic banking customers who decide to make the switch back to conventional, said Musadag El Melik, general manager of QBN Al Islami, its Islamic branch.

El Melik said 5 per cent of Islamic banking deposits have switched to conventional so far.

The issue largely revolves around retaining Islamic deposits rather than losing out on new Islamic loans, as Islamic customers cannot engage in conventional loan practices due to the religion's ban on interest.

"When it comes to putting deposits into a bank, there's a general belief that, as far as substance goes, there's not much difference between conventional and Islamic institutions," said one Islamic scholar who asked not be named. Reuters

FDIC worries EU banks may hurt financial system

BERLIN: A top U.S. bank regulator said she is "very concerned" the European banking system has the potential to become a future source of financial instability, according to testimony obtained by Reuters on Wednesday.

Federal Deposit Insurance Corp Chairman said her deep concerns were based in part on the credit quality of some countries and banks' exposure to the system.

Bair also said it was "just as troubling" that European banks "continue to effectively set their own capital requirements using internal risk estimates, unconstrained by any objective hard limits." Most regulators and policymakers in the United States agree banks should be forced to hold more capital to protect against losses and help withstand potential tremors in the financial system. But Bair contends representatives of some major European governments are going out of their way to express public misgivings about following through with the higher capital standards.

"With risk-based capital determined by bank management assumptions, and no leverage constraints on the horizon for several years, the prospects for further banking problems are unsettlingly high," said Bair, who is leaving the FDIC in July.

Bair's comments were prepared for a hearing on Thursday by the U.S. House Financial Services Committee into the international aspects of financial Kuwait's International regulatory reform. -Reuters Investment Group defaulted on two sukuk payments last year, and The Investment Dar, which owns half of British carmaker Aston Martin, defaulted on sukuk in May 2009. U.S. energy firm East Cameron defaulted on its sukuk issue in LONDON: Barclays Plc aims to 2008. The legal uncertainties generate more than 6 billion contributed to a drop in pounds ($9.8 billion) of extra Islamic bond issuance last revenue by 2013, largely through year, bankers have said. Sukuk efficiency measures, under a revamp plan laid out by its new sales fell 26 percent to $14 bilchief executive on Wednesday. lion in 2010, according to Barclays said in a statement it Thomson Reuters data. wants to generate additional Badlisyah Abdul Ghani, income of between 4.3 billion chief executive officer of pounds and 6.4 billion by 2013, Malaysia's CIMB Islamic compared with 2010. The top Bank, said the industry would end of that range would mark a pick take some time to pick up. 20 percent rise from last year's "When Islamic finance was income of 31.4 billion. Barclays introduced in Malaysia, it took and other UK banks face having a few years before other play- to restructure to shield their retail ers started to pick up the busi- business from riskier investment ness," he said. "When it was banking after the government opened to 1993 to other play- backed a plan to overhaul the ers, it took about five years industry, and the bank said it conbefore we saw a lot of momen- tinued to discuss reforms with tum." -Reuters regulators. -Reuters

Bankers, regulators meet to put Islamic finance back on map DUBAI: Top Islamic banking officials will meet in Singapore this week to discuss ways to revive an industry which has stalled as interest in new markets cool and legal uncertainties cloud the role of sukuk as funding tools.

Once touted as a viable alternative to traditional banking, Islamic finance has failed to make a mark outside its core markets as countries from Britain to Hong Kong and Australia put on hold sukuk issuance plans and proposed regulatory changes to accommodate sharia banking.

Its reputation stained by Dubai's $26 billion debt crisis in 2009, Islamic finance is struggling to attract investors' attention with emerging markets flush with funds, in contrast to 2008 when the global crisis shut down credit markets and prompted a search for alternative sources of finance.

"Islamic financing has been clouded by the sovereign debt

issues in Europe and quantitative easing has resulted in a lot of funds from the U.S. moving into various emerging markets," said Anuwar Idris, head of marketing and business development at Affin Fund Management in Kuala Lumpur.

Dwarfed by the size and financial muscle of its conventional banking rival, the $1 trillion Islamic finance industry needs to find new markets beyond the Middle East and Southeast Asia for growth.

In the first meeting of top officials since the Middle East unrest broke, Gulf and Asian regulators and bankers will gather in Singapore on Wednesday and Thursday to restore confidence in sukuk as fund-raising instruments.

Several high-profile sukuk defaults have thrown up legal uncertainties such as the extent to which sukuk holders own assets underpinning the issue when the instrument sours.

Barclays targets extra $10 bn of revenue

DUBAI: Islamic trade finance has benefitted from shifting preferences towards Shariacompliant banking and could serve as one of the key growth drivers to help the nearly $1 trillion Islamic finance industry double in size.

The global Islamic finance industry, which has been growing between 15 to 20 percent a year, is widely expected to reach $2 trillion in the next three to five years.

While Islamic banking and Islamic bonds, or sukuk, are expected to lead growth, bankers say Islamic trade finance could serve as the dark horse emerging to propel the industry further.

Trade finance, the lifeblood of global commerce, underpins 6080 percent of the $12-13 trillion trade in global merchandise and practitioners say it is safer than other forms of lending.

Total trade finance among the 57 members of the Organization of the Islamic Conference, which includes Saudi Arabia, Malaysia and Turkey, is expected to reach $4 trillion by 2012, said Mohamad Nedal Alchaar, secretary-general of the Accounting & Auditing Organization for Islamic Financial Institutions (AAOIFI). "(Islamic finance) could tap 20 percent of the total trading financing, that's very reasonable," Alchaar said, adding that while the current Islamic trade finance market remains fragmented and non-competitive, there has been a shift towards pushing trade finance among Islamic practitioners.

Part of the increased interest in Islamic trade finance is that the Islamic finance industry, which prohibits interest, has matured and can provide complicated instruments, such as Sharia-compliant hedging products to protect trade transactions, said Yakub Bobat, global head of HSBC Amanah commercial banking.

"If you don't have access to Islamic hedging, there will be a currency conversion impact. In the absence of those solutions, people go for conventional," Bobat said. "But the proposition is now complete and you can now use Islamic hedges for trade transactions."

Bobat said such innovations in the industry will help persuade people inclined toward Shariacompliant business to opt for Islamic trade finance over conventional forms.

In Islamic trade finance, a bank will provide a letter of credit, guaranteeing import payments using its own funds, for a client based on sharing the profit from the sale of the item.

But some banks are still wary of providing Islamic trade finance services, citing it as more costly and time consuming.

In addition, some see little difference between conventional and Islamic trade finance as both are fee-based products, resulting in lower demand for the Islamic product.

Changing that view will be key for the industry, said Shabir Randeree, chairman of the European Islamic Investment Bank.

"There is a very compelling reason to promote this product given that the returns of trade financing can be very attractive, much more than real estate financing, for example," he said.

"Providers of this product have not been as aggressive in promoting it."

But with increasing cross-border trade among Asian and Middle Eastern countries, demand for more Sharia-compliant financing from Muslims is still expected to increase.

"If I compare three years back, volumes have gone up overall in the Islamic trade finance market," said Ghazanfar Naqvi, managing director, Islamic origination and client coverage at Standard Chartered Saadiq.

"It's a function of more awareness and more offerings. Today we are seeing customer preference changing and trade finance is a key component of growth in Islamic finance."

Naqvi said it was difficult to pin down tangible global figures for Islamic trade finance as the majority of deals are not public transactions. The International Islamic Trade Finance Corp.

(ITFC), an independent entity within the Islamic Development Bank, said in its annual report that it approved $2.17 billion in Islamic trade finance transactions at the end of 2009. Reuters

NBP inaugurates branch in Riyadh RIYADH: National Bank of Pakistan (NBP) has officially inaugurated its branch in Riyadh, Kingdom of Saudi Arabia.

Governor Saudi Arabian Monetary Agency (SAMA), Dr Muhammad Bin Suleiman Al-Jasser inaugurated the branch at main King Fahad Road, Riyadh.

While speaking on the occasion, he appreciated the contributions from Pakistanis in establishment of SAMA. He also expressed hope that inauguration of the branch will result in improving trade & business relationship and

strengthen long lasting friendship bond between both brotherly countries while maintaining strict adherence to SAMA regulatory guidelines.

National Bank of Pakistan is Pakistan's largest bank with total capital of $1.496 billion, total asset base of $12 billions and earned net profit of $204 million last year.

NBP is having total domestic network of 1266 branches along with 23 international/ overseas branches and representative offices in 4 countries with their 16,457 dedicated and committed staffs to cater for their valued customers.

UBS must improve capitalisation given risks ZURICH/BERNE: Switzerland's biggest banks Credit Suisse and UBS urgently need to increase their core capital due to high levels of risk and impending regulations, the Swiss central bank said on Thursday.

"The big banks should build up an adequate base of lossabsorbing capital as swiftly as possible," the Swiss National Bank (SNB) said on Thursday.

"Risks in the economic environment remain considerable and, in relation to past losses, the big banks' loss-absorbing capital buffers are still thin," the SNB said in its annual Financial Stability Report.

The SNB noted the banks had taken initial steps, with UBS not paying a dividend in 2010 to help build capital, and Credit Suisse issuing about 2 billion Swiss francs ($2.4 billion) in contingent convertible bonds (CoCos).

While both banks have among the world's highest riskweighted capital ratios under existing Basel II standards, the SNB said a significant portion of this capital was only partially loss-absorbing and the banks' leverage is still high.

"The big banks' economic capital situation is less comfortable than their very high regulatory capital ratios under Basel II might suggest," SNB Vice Chairman Thomas Jordan said as he presented the report after the bank's policy meeting.

"Leverage for both UBS and Credit Suisse is still high by international standards. Taking only fully loss-absorbing capital into account, the average capital ratio of both big banks amounted to less than 2 percent of total assets."

EURO ZONE EXPOSURE The SNB said the banks' direct exposures to peripheral euro zone countries were relatively low, falling to 46 billion francs in 2010 from 60 billion in 2009.

"Should the debt problems in the already vulnerable international banking system or in other sovereigns become amplified, however, these banks could face considerable losses," Jordan said.

The SNB said it saw "no substantial decrease in risk" at the two banks compared with last year, with UBS consciously taking on more trading risk and a more mixed picture for Credit Suisse.

"Their exposure to credit and market risk relative to their capital remains considerable," Jordan said.

The Swiss government wants to make the two banks hold Tier 1 equity-type capital of at least 10 percent, compared with 7 percent under new Basel III industry rules, plus a further 9 percent of other forms of capital, such as CoCo bonds, lifting the total capital ratio to a hefty 19 percent.

Meanwhile, Jordan said risks from the booming Swiss real estate market had slightly increased from a year ago, with signs of overheating already in the apartments market sector as well as regions like Geneva, Zurich and Zug. "Should real estate prices continue to rise at the current pace and move away from the level justified by fundamentals, a significant price correction is more likely in the medium term," he said.

The SNB has increased its monitoring of the mortgage market but noted it currently had no power to directly act to counter the threat overheating posed to financial stability. Reuters

9

Friday, June 17, 2011

Oil up $1 to $114 on IEA support, bargain hunting

European vegetable oil prices

IEA forecasts tighter oil market to 2012

ROTTERDAM: The following were the Thursday's Rotterdam vegetable oil price's at 21:00 PST. SOYOIL: EU degummed euro tonne fob exmill Jun11 925.00+0.00, Jul11 925.00+0.00, Aug11/Oct11 932.00-1.00, Nov11/Jan12 942.00+2.00.

RAPEOIL: Dutch/EU euro tonne fob exmill Aug11/Oct11 980.00-5.00, Nov11/Jan12 980.00-5.00, Feb12/Apr12 980.00-5.00, May12/Jul12 980.00-5.00.

SUNOIL: EU dlrs tonne extank six ports option Jun11 1450.00, Jul11 1450.00+5.00, Aug11/Sep11 1450.00+5.00, Oct11/Dec11 1355.00-10.00, Jan12/Mar12 1380.00-15.00.

LINOIL: Aany origin dlrs tonne extank Rotterdam Jul11/Aug11 1585.00+22.50.

CRUDE PALM OIL: Sumatra/Malaysia slrs option dlrs tonne cif R'dam Jul11 1115.00-30.00, Aug11/Sep11 1110.00-30.00, Oct11/Dec11 1107.50-22.50, Jan12/Mar12 1112.50-17.50.

PALMOIL: RBD dlrs tonne cif Rotterdam July11 1182.50, Aug11/Sep11 1172.50.

PALMOIL: RBD dlrs tonne fob Malaysia July11 1127.5022.50, Aug11/Sep11 1117.5015.00.

PALM OLEIN: RBD dlrs tonne fob Malaysia July11 1137.50-22.50, Aug11/Sept11 1127.50-15.00, Oct11/Dec11 1112.50-20.00, Jan12/Mar12 1115.00-20.00.

PALM STEARIN: Dlrs tonne fob Malaysia Jun11 1045.0015.00, Jul11 1045.00-15.00.

COCONUT OIL: Phil/Indon dlrs tonne cif Rotterdam Jun11/Jul11 1740.00-60.00, Jul11/Aug11 1720.00-60.00, Aug11/Sep11 1705.00-55.00.

CASTOROIL: Any origin dlrs tonne extank Rotterdam Jul11/Aug11 2425.00-75.00. Reuters

LONDON: Oil edged up over $1 on Thursday to above $114 a barrel a day after a steep correction encouraged bargain hunting and a forecast from the IEA for a tighter market gave support.

Brent crude for August, the front-month contract after July expired on Wednesday, was up $1.14 to $114.15 at 1343 GMT after earlier dipping to $112.55 a barrel.

US crude was up 22 cents to $95.03 a barrel at the same time after getting down to $94.29.

But traders and analysts said the overall trend remained downwards, given the stream of negative economic data out of the United States, the ongoing Greek sovereign debt crisis and rising risk aversion amongst investors.

US weekly jobless claims dipped slightly on Thursday but remained at levels that were considered too high to put a dent in the unemployment rate.

Brent nudged $115 a barrel in the morning after the International Energy Agency (IEA) called on oil-producing

Indian sugar ends higher MUMBAI: India's sugar futures closed higher on Thursday on technical consolidation and as traders take new positions ahead of the expiry of the June contract, analysts said.

The most active sugar for July delivery on National Commodity and Derivatives Exchange (NCDEX) closed 0.87 per cent up at 2,544 rupees per 100 kg.

In Kolhapur, a key market in top producer Maharashtra, the most traded S-variety remained unchanged at 2,471 rupees ($55.076) per 100 kg.

"Sugar futures were trading at below spot prices, so there was some upside movement and technical consolidation was expected," said Prasoon Mathur, senior analyst with Religare Commodities.

According to traders, spot prices have declined sharply in the past one month and now sugar mills are not willing to sell at lower prices, which is holding it from falling further.

In the domestic market, sugar prices have fallen over 10 per cent in the past month, while during the same period the international market has risen 17 per cent. "Immediate exports are required to stabilise falling domestic prices.

In the international market prices are rising and India should grab these opportunities," Narendra Murkumbi, president of the Indian Sugar Mills Association (ISMA) said on Tuesday. -Reuters

group OPEC to raise output, saying that seasonal demand from refiners was set to soar in the third quarter.

It saw a tighter oil market to 2012 than previously expected, but traders were unimpressed.

"I am not sure the IEA report will be enough to create a sustained move to the upside," said Tony Machacek, a trader at Bache Commodities. "I would

expect further downside after yesterday's action."

He pointed out that commodities and stock markets had taken a hammering on Wednesday, and the dollar had strengthened as the euro came under sustained pressure.

Carsten Fritsch, an analyst at Commerzbank in Frankfurt, said the ongoing problems in the euro-zone were weighing on markets.

"We have seen an escalation of the crisis in Greece with vio-

lent protests, a government reshuffle, and the ratings agencies are still rating the risk of restructuring or default. This helps keep risk aversion elevated."

Greece must pass a new round of tax rises and spending cuts to receive a new EU/IMF bailout and a 12 billion euro ($17 billion) aid tranche but a string of parliamentary resignations have threatened the austerity plans.

"Fear of the contagion of the Greek crisis will spread t h r o u g h European banks and other assets," said Thorbjorn Bak Jensen, an oil analyst at Global Risk Management. "I think we are back in the $110-$118 dollar range again."

The commodities markets pulled back sharply on Wednesday, with US crude down more than 4 per cent to $94.81, the lowest settlement since Feb. 22. Brent crude gave up nearly 6 per cent in its second-largest single-day drop since April 2009. -Reuters

Copper slides on demand, Greek default fears LONDON: Copper prices slid on Thursday as fears over weak growth in the United States and risk of default in Greece hit investor sentiment.

Aluminium touched a two and a half week low of $2,523.50 a tonne and nickel tumbled to $21,100 a tonne, its lowest since last November. Both metals came under pressure on concerns about an oversupplied market.

Benchmark copper on the London Metal Exchange closed at $9,065 a tonne from $9,154 a tonne at the close on Wednesday when the metal used in power and construction touched $9,234, its highest since June 1.

It hit a session low of $8,951 per tonne when the dollar jumped against a basket of currencies shortly after slightly better than expected US data.

US housing and jobless data above expectations was not enough to offset worries about the health of the world's largest economy, which is struggling with a mix of rising inflationary pressures and weak growth.

A string of parliamentary resignations threw Greek Prime Minister George Papandreou's plan to reshuffle his cabinet and seek support for a crucial austerity package into disarray.

However, optimism about stronger demand later this year from China, with a 40 per cent share of the global market estimated at 21 million tonnes this year, is expected to help buoy copper prices, analysts said.

"We have to watch inventories and Chinese import data to see what is happening," an LME trader said.

Stocks of copper in London Metal Exchange warehouses at above 470,000 tonnes are the highest in more than a year and

Shanghai copper lower The most-active August copper contract on the Shanghai Futures Exchange closed down 0.7 per cent at 68,150 yuan per tonne. are up about 35 per cent since early December 2010.

LME aluminium stocks are also within sight of the record high above 4.71 million tonnes hit in May. Aluminium has come under some selling pressure because of the stock build up, but the negative mood has to a large extent been offset by bank financing deals which are said to have tied up about 70 per cent of LME inventories.

The latest trigger for the selloff was news that China's aluminium production hit a record high in May. The metal used in power, packaging and transport closed at $2,555 a tonne from $2,591 at the close on Wednesday, while stainless steel material nickel ended at $21,605 from $22,050 a tonne.

Lead was at $2,481 a tonne from $2,518 on Wednesday, zinc was at $2,205.5 from $2,246 and tin at $24,905 from $25,150 a tonne. -Reuters

Gold steadies but focus remains on Greece LONDON: Gold held steady in choppy trading on Thursday, guided by the fluctuations of the US dollar, which profited from the tumble in the euro on the back of the Greek debt crisis and from a spate of improved economic data.

The Greek crisis deepened after the prime minister's plan to reshuffle the government was thrown into disarray following a string of parliamentary resignations.

European officials raced to put together an emergency lifeline for Athens.

That pummelled the euro and pushed to record highs the cost of insuring against default the debt of Greece and several other peripheral euro-zone nations.

It also dented palladium, copper and gold, which normally profits from such environments.

Spot gold was steady at $1,529.69 an ounce by 1343 GMT, after rising to around

$1,533 on Wednesday on the back of weaker equity markets.

Gold is 3.2 per cent below a lifetime high at $1,575.79 touched in early May, but still up 7.5 per cent so far this year, having risen by nearly 24 per cent in the last year and traders and analysts said the uncertainty created by the Greek debt problem and the question marks hanging over the US economic

outlook would likely keep the market supported.

Gold priced in euros was last up 0.2 per cent on the day trading at 1,082.10 euros an ounce, just shy of the record high of 1,088.11 euros hit in late May. "Generally speaking, an escalation of the sovereign debt crisis would help ensure that gold does not stray too far south of

$1500 should this level be broken over the summer, as we anticipate," said UBS strategist Edel Tully in a note.

Holdings of gold in the major exchange-traded funds were stable. Global holdings of gold in ETFs have fallen by nearly 130,000 ounces so far this month.

Silver was last down nearly 1 per cent at $35.41 an ounce, having fallen by nearly a third since touching a record $49.51 in April.

The ratio, showing how many ounces of silver can buy one ounce of gold, was at about 42 after falling to around 31 in late April, its weakest since the early 1980s.

Platinum was last down 1.0 per cent on the day at 1,750.24 an ounce, having fallen for five days in a row, its longest stretch of losses since June last year.

Palladium was last down 2.3 per cent at $752.74. -Reuters

BERLIN: Two contestants eat cucumbers as much as they can in five minutes in order to establish Germany's "cucumber king". Germany's vegetarian association organized the contest, after Germany said that deadly E.coli bacteria that have killed 31 people and hit farmers across Europe almost certainly came from contaminated bean sprouts grown at an organic farm in northern Germany. -Reuters

Cocoa shed 2pc; coffee decline LONDON: ICE cocoa futures slid by over 2 per cent on Thursday due to ample supplies and widespread bearish sentiment across markets, while coffee futures fell as dealers looked to growing concerns over the debt crisis in Europe.

Raw sugar futures dipped, trading below two-month highs hit earlier this week, but were underpinned by delays in Brazilian and Thai ports.

"At the moment there is a strong risk aversion across commodities in general," said Eric Sivry, head of the agri options brokerage at Marex Financial, noting that European turmoil over Greece's debt crisis was bearish for commodity markets.

In addition, cocoa fundamentals have also been bearish as a bumper 2010/11 crop from West Africa has weighed on the market.

Benchmark ICE September cocoa futures traded down $70, or 2.4 per cent, at $2,905 a tonne at 1429 GMT, while Liffe September cocoa fell 25 pounds to 1,820 pounds a tonne.

Coffee markets were also weaker. ICE September arabica coffee was down 4.5 cents or 1.7 per cent at $2.6135 per lb, while Liffe September robustas were down $15 or 0.6 per cent at $2,417 a tonne at 1431 GMT. Dealers said the seasonal dip in roaster buying also meant prices could weaken further.

Sugar futures also fell as the risk-averse sentiment and stronger dollar outweighed some supportive fundamental factors including delays to Brazil sugar shipments.

ICE July raw sugar futures pared losses, trading down 0.13 cent or 0.5 per cent at 24.95 cents a lb at 1433.

Liffe August white sugar was down $6.20 or 0.9 per cent to $700.40 per tonne. Reuters

Palm oil at 5-wk lows as stocks seen rising KUALA LUMPUR: Malaysian palm oil futures dropped to more than fiveweek lows on Thursday as traders cut back on worries that stocks could grow beyond 2 million tonnes this month.

Although orders for the tropical oil have grown in response to higher output in Malaysia and a widening discount to competing soyoil, stocks are expected to rise above the 16-month high of 1.92 million tonnes hit in May. The benchmark September crude palm oil contract on the Bursa Malaysia Derivatives Exchange lost 2.4 per cent or 77 ringgit to 3,193 ringgit ($1,053.118) a tonne, the lowest level since May 9.

If in the next few months Malaysian stocks rise above

the record 2.3 million tonnes last seen in November 2008, palm oil prices could extend a loss of 14 per cent so far this year.

"I think 3,000 ringgit needs to come, sooner or later. We are on track for declines and that is helped by weaker crude oil and soyoil as well," said a trader with a foreign commodities brokerage.

Overall traded volume was 27,666 lots of 25 tonnes each, higher than the usual 25,000 lots, boosted by a last-minute sell-off.

US soyoil for July delivery dropped 1.2 per cent on weaker crude and improved crop weather for soybeans.

The most active January 2012 soybean oil contract on the Dalian Commodity Exchange fell 1 per cent. Reuters

NY cotton declines on commods sell-off NEW YORK: US cotton futures settled lower Wednesday on investor liquidation as a commodity-wide sell-off spilled into the market, analysts said.

Fundamentally, cotton is still looking at one of the worst droughts in a century damaging cotton crops in Texas, the top growing state in the country.

The key December cotton contract on ICE Futures US fell 5.98 cents to finish at $1.258 per lb, ranging from $1.3224 to down the 6.00 cent daily limit at $1.2578.

The spot July contract dropped 3.58 cents to settle at $1.5196 per lb.

Total volume traded Tuesday reached nearly 24,000 lots at 1902 GMT, over 70 per cent above the

30-day norm, Thomson Reuters preliminary data showed.

Traders said that Wednesday's action in the cotton market had nothing to do with its fundamental outlook. They pointed to the US Agriculture Department's weekly crop progress report late on Monday which showed that Texas reported that 44 per cent of its cotton was in poor to very poor condition.

Texas is dealing with one of its worst droughts in a century and a similar dry spell has hit areas of southern Georgia. The weather forecast for Texas calls for more dry and hot weather through Sunday, a report by forecaster Telvent DTN said.

-Reuters

Tokyo rubber down on falling shares BANGKOK: Tokyo rubber futures slipped lower on Thursday, tracking falls in share prices, but firmer oil provided support, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange for November delivery fell 2.8 yen to settle at 383.4 yen ($4.731) per kg.

The most active rubber contract on Shanghai futures for September delivery fell 390 yuan to finish at 33,110 yuan ($5,108) per tonne. "Rubber prices just lacked any follow-through buying force to rise further as weaker share prices weighed on the market," one dealer said.

Oil ticked higher, providing some support for rubber futures.

Dealers said TOCOM prices were also supported by limited supply in producing countries.

Heavy rain persisted in Thailand, the world's biggest rubber exporter, disrupting tapping and cutting supply. Traders in Hat Yai, the main rubber centre, said supply was likely to be tight for the rest of June because of rain. Reuters

National Commodity Exchange Ltd Trading Summary Date

16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011 16-Jun-2011

Commodity

CRUDE10 CRUDE10 CRUDE10 CRUDE100 CRUDE100 CRUDE100 SILVER - 100oz SILVER - 100oz SILVER - 100oz SILVER - 500oz SILVER - 500oz SILVER - 500oz GOLD 01oz GOLD 01oz GOLD 01oz GOLD 100oz GOLD 100oz GOLD 100oz GOLD GOLD GOLD KILOGOLD KILOGOLD TOLAGOLD50 TOLAGOLD100 MINIGOLD MINIGOLD MINIGOLD MINIGOLD MINIGOLD TOLAGOLD TOLAGOLD TOLAGOLD TOLAGOLD TOLAGOLD IRRI6W

Contract Date

Price Quotation

Open

High

Low

Close

JY11 AU11 SE11 JY11 AU11 SE11 JY11 AU11 SE11 JY11 AU11 SE11 JY11 AU11 SE11 JY11 AU11 SE11 JY11 AU11 SE11 JY11 AU11 JY11 AU11 MON TUE WED THU FRI MON TUE WED THU FRI 16JU11

US$ Per Barrel US$ Per Barrel US$ Per Barrel US$ Per Barrel US$ Per Barrel US$ Per Barrel US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per Tola Per Tola Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per Tola Per Tola Per Tola Per Tola Per Tola Per 100 kg

98.81 99.69 99.69 98.77 99.04 99.69 34.91 35.03 34.98 35.00 35.03 35.03 1516.50 1517.00 1517.00 1518.30 1517.00 1517.90 42442.00 42250.00 42427.00 41984.00 41999.00 48969.00 48969.00 43114.00 43159.00 43174.00 43083.00 43098.00 49821.00 49672.00 50,103 49,584 50,150 3,601

99.95 100.30 99.69 99.90 100.32 99.69 35.94 35.53 35.98 35.97 35.53 35.96 1534.50 1535.10 1535.90 1533.00 1534.00 1528.70 42442.00 42429.00 42450.00 42390.00 42401.00 49443.00 49443.00 43513.00 43560.00 43576.00 43592.00 43497.00 50125.00 50138.00 50,157 50,175 50,150 3,601

94.46 94.61 95.69 94.24 94.76 95.69 34.85 35.03 34.87 34.88 35.03 35.00 1514.50 1515.00 1515.50 1516.90 1515.00 1517.90 42011.00 42027.00 42427.00 41984.00 41999.00 48969.00 48969.00 43114.00 43159.00 43174.00 43083.00 43098.00 49619.00 49672.00 49,689 49,584 49,602 3,600

94.79 95.25 95.69 94.79 95.25 95.69 35.52 35.53 35.53 35.52 35.53 35.53 1528.20 1528.70 1529.20 1528.20 1528.70 1528.70 42418.00 42429.00 42450.00 42390.00 42401.00 49443.00 49443.00 43513.00 43560.00 43576.00 43592.00 43497.00 50083.00 50138.00 50,157 50,175 50,065 3,600

Traded Volume in lots 1,534 395 352 92 333 193 90 54 2,438 7,107 2,425 13 106 20 3 12 3 19 -

Previous Settlement Price 98.78 99.25 99.69 98.78 99.25 99.69 35.02 35.03 35.03 35.02 35.03 35.03 1516.90 1517.40 1517.90 1516.90 1517.40 1517.90 42011.00 42027.00 42427.00 41984.00 41999.00 48969.00 48969.00 43114.00 43159.00 43174.00 43083.00 43098.00 49619.00 49672.00 49,689 49,584 49,602 3,601

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

Current Open Interest Settlement in Lots Price 94.79 590 95.25 280 95.69 94.79 126 95.25 46 95.69 35.52 48 35.53 35.53 84 35.52 23 35.53 3 35.53 38 1528.20 1,435 1528.70 2,189 1529.20 1,873 1528.20 4 1528.70 12 1529.20 42418.00 2 42429.00 1 42450.00 42390.00 42401.00 49443.00 49443.00 43513.00 43560.00 43576.00 43592.00 43497.00 50083.00 16 50138.00 50,157 3 50,175 50,065 17 3,600 -

10

Friday, June 17, 2011

Board fines Afridi Rs4.5mn but gives NOC KARACHI: The Pakistan Cricket Board (PCB) Thursday slapped Shahid Afridi with a fine of Pakistani Rs.4.5 million after the former captain admitted to violating the board's Code of Conduct.

Tafazzul Rizvi, the PCB's legal counsel, told reporters at the board headquarters in Lahore that a three-member disciplinary committee has also agreed to grant Afridi a No-Objection Certificate (NOC) to play in the ongoing English Twenty20 tournament.

'Afridi appeared before the committee for what was a long hearing and regretted for breaching the Code of Conduct,' said Rizvi, who assisted the

disciplinary committee headed by Sultan Rana, one of the board's directors.

'Afridi has accepted the fine. The committee has also decided to grant him an NOC to play in England,' he added. Afridi told reporters that he was 'happy' over the outcome of Thursday's hearing. 'I am happy that the committee heard me properly and everything was sorted out amicably. This case brought a bad name for Pakistan and I am happy that it's over,' he said.

The star allrounder, however, made it clear that he was in no mood to reverse his decision to retire from international cricket. 'I am in no mood to play (inter-

national) cricket,' he said.

Earlier, Afridi made it clear that he refused to apologise before the disciplinary committee.

'I admit I have made mistakes but the circumstances forced me to do things.

But I have not apologised to the committee. 'Whatever decision the committee takes, it will be acceptable to me. I had outlined all the reasons and circumstances that led to my dispute with the board and strained relations within the team management,' he said.

Afridi and the PCB were on a war path since early this month after the former captain announced his retirement from international cricket and

directly blamed the board for his decision. The PCB decided to hit back by suspending Afridi's central contract and revoking all the NOCs granted to the all-rounder that allowed him to feature in county events and Twenty20 leagues. The board accused Afridi of serious breaches of discipline.

The move that really hit Afridi hard was the board's decision to block his participation in the Twenty20 tournament in England by revoking the NOCs granted to him. Afridi had signed a lucrative contract with Hampshire. He is now expected to leave for London over the weekend to join his team for the Twenty20 event.

Collingwood vows to keep England one-day place

Anderson removes Sri Lanka debutant before lunch SOUTHAMPTON: England pace bowler James Anderson claimed the wicket of Sri Lanka debutant Lahiru Thirimanne before rain forced an early lunch on the opening day of the third test on Thursday.

At the interval Sri Lanka, who need to win to square the three-match series, were 23 for one.

Left-hander Thirimanne, playing instead of injured captain Tillakaratne Dilshan, had survived for almost an hour before he played a loose shot outside his off stump and edged a catch to Andrew Strauss at first slip. He had scored 10.

Tharanaga Piranavitana was 11 not out and stand-in skipper Kumar Sangakkara had yet to score. Anderson missed the second test with a side strain.

Piranavitana survived one scare in the fifth over when he played and missed a full length delivery from Anderson that had all of England's close fielders appealing for a catch behind. After Pakistani umpire Aleem Dar turned the appeal England used up one of their two allocated reviews when the hot spot replay indicated there was no deflection off the edge of the left-hander's bat, although a later review using the 'snicko' technology suggested there had been an edge.

England won the toss after rain had saturated the outfield and delayed the start for 75 minutes. -Reuters

FIFA donates $6 million to disaster-hit Japan TOKYO: FIFA will donate about $6 million in aid to help Japanese football recover from the damage of the March 11 earthquake and tsunami disaster, Japan's football chief said Thursday.

Of the sum, $4.5 million will help J-League clubs, including champions Kashima Antlers, repair stadiums and training facilities damaged by the 9.0magnitude quake, Japan Football Association president Junji Ogura said.

Football's world governing body will also give the remaining $1.5 million to build or repair training grounds in the worst-hit northeastern prefectures of Iwate, Miyagi and Fukushima, Ogura told a news conference. FIFA will also donate balls, shirts, boots and other football equipment worth $500,000 to some 15,000 children in the disaster-hit areas through official sponsor Adidas, he added.-Reuters

ST OMER: Calum Macaulay of Scotland hits his tee shot on the 17th hole during day one of the Saint Omer Open. -Reuters

Kirsten sees Twenty20 as a domestic product SINGAPORE: Twenty20 cricket should be played less at international level to stop it diluting Test and one-day matches and more in domestic leagues to increase attendances, World Cup winning coach Gary Kirsten said.

Kirsten, who stepped down as India coach to take charge of his native South Africa after leading the south Asians to 50-over World Cup success in April, was full of praise for the shortest form of the game but questioned it's use. "I have always had a view that it is a great domestic product," Kirsten said in Singapore.

"Maybe you can look at the platform soccer works off, where they play mainly domestic soccer through the year and then they have a major tournament at a country level, maybe that's what Twenty20 can do.

"I think international cricket does really well with Test cricket and the 50-over format of the game and I feel Twenty20 cricket will dilute those products a little bit.

"I think it (Twenty20) is a great product, there are going to be teething problems as we go along as it's a new product to world viewership and world sporting entertainment, but it's done remarkably well over a short period of time."

Twenty20 cricket has been a big hit since its conception in 2003 in England but attempting to find space for it in an already crowded international calendar has proved difficult and extended tours to fit in matches have proved unpopular. Kirsten, speaking on the sidelines of the Nomura Asia Equity Forum, believes something has to give.

"The future tours programme doesn't allow for that much Twenty20 cricket, they are trying to fit them in schedules and trying to find a space for them here or there," the former Test opening batsman said.

He said the International Cricket Council's only alternative would be to play more Twenty20 cricket at the expense of the 50-over game.

"You can't extend tours longer than six weeks and that has been an almost unwritten thing now that they want to keep tours as short as possible," he said.

The multi-billion dollar Indian Premier League ( IPL) is the most successful domestic Twenty20 tournament.

Beginning in 2008 and featuring an auction for the world's best players to come and play for one of now 10 franchises, Kirsten believes it's success demonstrates his point that Twenty20 is a great domestic product.

"I know Australia are trying that now (creating a domestic Twenty20 league), England are trying that, South Africa have their own Twenty20 thing and there is great interest in it and it brings crowds to the game in the domestic format that other forms of the game don't.

"There is very little support for domestic four-day cricket and domestic 50-over cricket, so I think its great for the local game," said Kirsten. -Online

Ecclestone defends Hamilton's driving Formula One supremo Bernie Ecclestone has defended Lewis Hamilton from criticism, hailing the McLaren driver as a racer just like the late Brazilian champion Ayrton Senna before him.

"People have been wrong to rubbish Lewis," Ecclestone told the Independent newspaper on Thursday when asked about his fellow-Briton.

"What we want is people racing, and all the people who watch it want that. If you analyse what's been happening and how other drivers have been performing, Lewis shows up very well, and so do Sebastian (Vettel) and Jenson (Button). "So let him race. That's what people like him do. I was very, very good friends with Senna, and if you look at what he

did, he was a racer too, and people had to move over for him," said the 80-year-old. Hamilton has been involved in numerous scrapes and controversies this season, most recently retiring in Canada at the weekend after his car was damaged in a collision with team mate Button.

At the previous race in Monaco, he had collided with Ferrari's Felipe Massa and Williams' Venezuelan rookie Pastor Maldonado.

Austria's retired triple champion Niki Lauda, another of Ecclestone's close circle who is now a television pundit, said after the race in Montreal that Hamilton was 'completely mad' and could kill someone if he carried on in such a reckless manner.

"Perhaps Lewis has made one or two questionable moves, but so have many of the others, and nobody bothers to look what's happening further down the field," said Ecclestone.

"It's always been like this. We saw a lot of people racing in Canada on Sunday, and Jenson did a super job. That's what the fans want to see."

Button also defended Hamilton's driving after Sunday's race.

"Lewis is in the headlines a lot, and a lot of it is because he is bloody good," he told British reporters. "He's a racer, a fighter.

For me that is the reason why I wanted to be here, against and with a driver that is super talented, one of the best drivers Formula One has ever seen."

LONDON: Paul Collingwood has insisted he won't quit international cricket despite his removal as England's Twenty20 captain.

The Durham all-rounder retired from Test action after England's victorious Ashes triumph in Australia but remained available for limited overs duty.

However, the 35-year-old was stunned when, after leading England to the World Twenty20 trophy in the West Indies last year, he was recently ditched as captain of the Twenty20 side and replaced as skipper by Stuart Broad -- who has no senior leadership experience.

Collingwood, fit again following knee surgery, told the Cricketer magazine: "I love playing for England. I love the environment. I love what we've created. "It's just a great place to be and so I really lived the dream these last 10 years. And I want more of it. I want to be involved, I want to be playing."

He added: "When you get older there's a lot more pressure.

People start looking at your age.

"You have to be fitter than you've ever been because you can't give them an excuse to ignore you. But I feel fit, I feel sharp, all the desire is there, so I just need to score the runs that demand attention."

"It would have been nice if they (the England selectors) had waited and seen what I was like when I came back and then maybe made the decision after the first Twenty20s this summer.

"But, look, when people get sacked you're always going to have grumbles. -Reuters

Zulqarnain to appear before PCB panel today LAHORE: Pakistan's runaway wicket-keeper Zulqarnain Haider will appear before the disciplinary committee of the Pakistan cricket Board on Friday.

In a long awaited hearing Zulqarnain will try to convince the disciplinary committee that his decision to desert the national team in Dubai and flee to London, where he sought asylum, was justified as he was under threat from alleged match-fixers. According to Zulqarnain, he received the threat during the series against South Africa last year in Dubai after which he left the hotel without informing the team management.

The wicket-keeper only returned to Pakistan in late April after getting assurances of security from interior minister, Rehman Malik.

The PCB, however, has told Zulqarnain to face disciplinary proceedings for violating his central contract.

"Zulqarnain has been told to appear before the disciplinary committee on Friday and it is the committee that will now decide his fate," a PCB official said.

He said the chairman of the

Board, Ijaz Butt had also ignored attempts by Zulqarnain to seek a one-toone meeting with him.

"The matter is now in the hands of the disciplinary committee as Zulqarnain has clearly violated the terms of his contract," one official said. The board is also upset with Zulqarnain's latest claims in the media that some Pakistani players involved in spot-fixing. The channels quoted Zulqarnain as saying that he would soon approach the Supreme Court for justice and give the court the names of the alleged players involved in corruption.

While the PCB has released partial payment to Zulqarnain of his match fees and other payments on humanitarian grounds, it has refused to clear him to play domestic cricket despite repeated pleas.

The stumper made his Test debut against England last year at Edgbaston and scored a fighting 88.

Sources said the discipinary committee is expected to record statements of some Pakistan players who were in the team that played against South Africa and manager, Intikhab Alam. -Online

Pak Army win 1st Int’l Beach Kabaddi tourney ISLAMABAD: Pakistan Army beat Islamic Republic of Iran 40-36 after an interesting contest to grab first position in the inaugural International Kabaddi Beach Tournament here at Pakistan Sports Complex Islamabad on Wednesday.

The Army boys carried out powerful raids and excellent catching to take the score to 2015, in their favour, at half time.

Iran put up a better show in the second half, but were eventually beaten and finished as runnerup. Army's Nasir, Khalid and Abrar were the main contributors, while for Iran Farhad Rahimi and Fazel played brilliantly. Earlier, WAPDA crushed Pakistan Air Force (PAF) 61-23 in a one-sided affair to clinch the third position.

Iran's Deputy Head of the LONDON: Camila Giorgi of Italy hits a backhand during her Mission to Pakistan Hussain match against Yvonne Meusburger of Austria on day three of Ravesh was the chief guest of the Wimbledon Championships 2011 Qualifying at the Bank of England Sports Ground. -Reuters the concluding ceremony. - APP

US data offers a mixed picture of recovery WASHINGTON: A gauge of regional manufacturing activity slumped to a near two-year low in June, suggesting U.S. factories were faltering, overshadowing better than expected readings on the labor and housing markets.

The Philadelphia Federal Reserve Bank said on Thursday its business activity index dropped to -7.7, the lowest level since July 2009, from 3.9 in May. Economists had expected the gauge of factory activity in the Mid-Atlantic to rise to 6.8 and none of the 55 participants in the poll had expected a reading lower than zero, which indicates a contraction in activity.

Coming on the heels of a survey on Wednesday showing a contraction in factory activity in New York state, the report could stoke fears of a sharp slowdown in manufacturing, a sector that has powered the U.S. economic recovery.

Factory activity is being hampered by supply chain disruptions following the March earthquake and tsunami in Japan.

The Philadelphia Fed report contradicted other data on Thursay that had offered some hope the economy could be starting to pull out of its soft patch.

"There is some improvement in some series, but the manufacturing series seem to be deteriorating further in June," said Christopher Low, chief economist at FTN Financial in New York.

Initial claims for state unemployment insurance slipped

16,000 to 414,000, the Labor Department said, suggesting the jobs market was regaining some momentum after stumbling badly in May. A report from the Commerce Department showed groundbreaking for homes rose 3.5 percent to an annual rate of 560,000 units, retracing almost half of April's steep decline.

New building permits unexpectedly rebounded 8.7 percent to the highest level since December.

The housing and claims reports offered at least a hint the economic slowdown that started as the year began could be easing.

U.S. stocks fell on the manufacturing data, while prices for Treasury debt rose, also boosted by safe-haven flows on concerns Greece could default on its debt.

"The broader theme we have to look at is that the pace of job destruction is slowing but the pace of job creation is also a bit tepid," said Ian Pollick an economic strategist at TD Securities in Toronto.

A report earlier this month showed U.S. employers added a scant 54,000 workers to their payrolls in May, with the jobless rate rising to 9.1 percent.

LEVELS STILL DISMAL While both the jobless claims and housing data moved in a better direction, the levels suggested the recovery remains quite weak.

Initial jobless claims remained above the 400,000 level for a tenth straight week.

Economists say claims would need to drop below that level to

Japan manufacturing gloom eases

offer a clear sign of an improving labor market.

At the same time, economists have been largely dismissive of moves in U.S. housing data because construction and sales have moved to historically low levels.

A Reuters poll found that economists expect the housing market to sink further this year before prices start rising only marginally in 2012, a Reuters poll predicted.

Home prices -- as measured

by Standard & Poor's 20-City Composite Home Price Index - will fall 5.0 percent in 2011 and rise just 0.5 percent in 2012, according to the poll.

An oversupply of homes on the market, especially foreclosed properties which sell well below their value, has dampened construction and weighed on prices. A survey on Wednesday showed sentiment among home builders at its lowest level in nine months in June.

Data firm RealtyTrac said on Thursday that the number of U.S. homes seized by banks fell in May, but it pinned that decline on processing delays.

Banks took over 66,879 homes last month, down 4 percent from April.

Groundbreaking for both multi- and single-family homes rose in May, with permits lifted by a 23.2 percent surge in the multi-family segment. The increase in multifamily units reflects a growing demand for rentals as relentless home price declines encourage Americans to delay home purchases.-Reuters

TOKYO: Sentiment among Japanese manufacturers rose in June for the second straight month and is seen improving further in the coming quarter, a Reuters poll showed, underlining prospects for the economy's recovery from the March 11 earthquake.

But with domestic demand yet to receive a boost from reconstruction of the devastated northeast coast, service-sector confidence worsened, with the pace of improvement seen lagging behind manufacturers over the next three months.

The monthly Reuters Tankan poll, which has a 95 percent correlation with the Bank of Japan's closely watched quarterly tankan survey, added to growing signs that the world's third-largest economy is recovering from the immediate shock of the disaster.

The poll bolstered the view that no imminent monetary easing is needed barring unexpected events. The BOJ kept monetary policy steady on Tuesday but boosted a loan scheme targeting growth industries as part of a longterm campaign to spur economic growth.

"The Reuters Tankan confirmed the view that the economy will be recovering later this year towards early next year driven by manufacturers, as supply chains and distribution networks that were damaged by the quake are mended," said Kyohei Morita, chief economist at Barclays Capital Japan.

The BOJ tankan for the second quarter, due on July 1, will be closely scrutinised at a board meeting on July 11-12 when BOJ policymakers review their economic and price forecasts issued in April.-Reuters

CONTINUATIONS No #1

Continued from page 12

assets, dues, utilisation of employees. The Commission Chairman Senator Mian Raza Rabbani said that the Commission was working in accordance with the constitution and we would complete the work by June 30.

The formula to devolve ministries to Provinces would be finalized later. During the meeting it was decided that the notification to devolve ministries to Provinces would be issued by June 30 after getting approval from federal cabinet. -Online

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prestigious Brookings Institute, said last week participating in a discussion at the Center for Strategic and International Studies, a Washington-based think tank.

Riedel added that this will leave the State Department as the principle defender of engagement with Pakistan and the state department, because it is the State Department, argues in favour of engagement with everybody.

"That's what diplomats are supposed to do.-Online

No #3

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rescue the shattered American-Pakistani relationship.

General Kayani told the director of the CIA, Leon E Panetta, during a visit here last weekend that Pakistan would not accede to his request for independent operations by the agency, Pakistani and American officials said.

A long statement after the regular monthly meeting of the 11 corps commanders last week illuminated the mounting hostility toward the United States, even as it remains the army's biggest patron, supplying at least $2 billion a year in aid, the daily said.

The statement, aimed at rebuilding support within the army and among the public, said that American training in Pakistan had only ever been minimal, and had now ended, it said.

The statement said that the CIA-run drone attacks against militants in the tribal areas "were not acceptable under any circumstances."

Allowing the drones to continue to operate from Pakistan was "politically unsustainable," the Times quoted a "well-informed Pakistani who met with General Kayani recently" as saying.

As part of his survival mechanism, General Kayani could well order the Americans to stop the drone programme completely, the Pakistani said.

The anger at the Americans was now making it more difficult for General Kayani to motivate the army to fight against the Pakistani Taliban in what is increasingly seen as a fight on behalf of the US, the Times said citing former Pakistani soldiers Discipline has become a worry, as has an open rebellion in the middle ranks of officers, particularly as rumors circulate that some enlisted men have questioned whether General Kayani and his partner, Lt. Gen. Ahmed Shuja Pasha, the head of the chief spy agency, the Directorate for the Inter-Services Intelligence, should remain in their jobs. A special three-year extension General Kayani won in his position last year did not sit well among the rank and file who perceived it as having been pushed by the United States to keep its man in the top job. Despite the resources the army soaks up - about 23 percent of Pakistan's annual expenditures - it has appeared impotent since the May 2 raid. The infiltration three weeks later of the nation's largest naval base by Qaeda commandos that left at least 10 security officers dead added to the sense of disarray. -Agencies

11

Economy & Continuations

Friday, June 17, 2011

"Some investors are also concerned that it might be using the funds to bid for Korea Express. It's been expanding aggressively through acquisitions in recent years and investors want Lotte to focus more on organic growth and raising profitability of its core operations."

Crude refiners lost ground after oil prices slid more than 4 per cent in US trade overnight.

Falls in crude oil prices generally translate as weaker product prices and sales for domestic refiners.

Shares in S-Oil, the country's No.2 crude oil refiner, declined 4.3 per cent and SK Innovation, the country's biggest, lost 4.4 per cent. Shinsegae outperformed, edging down 0.9 per cent after its affiliate and Korea's top discount retailer E-Mart said it plans to sell unprofitable stores in China in an effort to restructure its lossmaking operations there.

But E-Mart shares tumbled 5.1 per cent.

"E-Mart was making heavy losses in cities like Shanghai as its brand image was weak there. The sale by itself is good," said Han Kook-hee, an analyst at Mirae Asset Securities.

"But Shinsegae still appears adamant about staying and making it in China and this makes investors uneasy," Han said.

KOSPI 200 Sept futures ended down 5.7 at 269.75 points and the KOSPI 200 spot index slid 5.65 points to 268.88. The junior Kosdaq market ended down 0.92 per cent at 460.54.-Reuters

No #6

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Furthermore, information minister Firdous Ashiq Awan has also made it clear that the investigation into killing of journalist Saleem Shahzad will be completed within six weeks.

No consultation was made with CJP about constitution of commission to probe into May 2 incident, she indicated. Therefore, no consultation had been made with him in connection with this commission; she maintained and added that any wrong impression in this respect should stand dispelled. Supreme Court is for all of us.

The Ministry of Information and Broadcasting would provide all the secretarial support to the commission Shahzad's body bearing marks of torture was found in a canal in Mandi Bahauddin, two days after he went missing in the capital while on his way to attend a TV show. He worked for Hong Kongbased Asia Times Online. Days before his disappearance, he had published an article alleging links between the al Qaeda and a few Pakistan Navy officials. - Agencies

No #7

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consultations, the appointment of Sheikh Ayman al-Zawahiri as head of the group," the statement, issued in the name of the general command and posted online on Thursday, said.

Al-Zawahiri, 59, issued a eulogy for bin Laden last week saying al Qaeda's leader had terrified the US when he was alive and would continue to do so in death.

He appeared in a white Arab robe and turban, a Kalashnikov at his side, in the 28-minute video posted on jihadist online forum.

We will pursue the jihad until we expel the invaders from Muslim lands," he said. -Online

No #8

Continued from page 1

During the hearing, the court directed the officials to submit their replies by June 23 and after the replies the apex court would Continued from page 5 No #4 proceed with the reserved judgment. demand worries and a rising dollar weighed, sending US crude Interior secretary Chaudhry Qamar-uz-Zaman, Establishment to its lowest since February.

Division secretary Abdul Rauf Chaudhry and Prime Minister's Inpex Corp, Japan's biggest oil and gas developer, shed 3.8 per Principal Secretary were issued contempt notices after they failed cent to 565,000 yen, while Mitsubishi Corp, Japan's largest com- to satisfy the apex court over transfer of Zafar Qureshi in haste modities trader, dropped 2.8 per cent to 1,936 yen. and on verbal orders.

Volume stood at 1.79 billion shares, lower than Wednesday's The notices were issued after a response from recently trans1.98 billion shares and the average for the past six days.-Reuters ferred DG FIA Malik Muhammad Iqbal in a contempt notice over Continued from page 5 No #5 attempting to transfer Zafar Ahmed Qureshi, an officer who was in convertible bonds to partly fund its foreign investment. "The investigating the scam. announcement of bond sales and the size are quite surprising Earlier, the court had indicted Malik Iqbal for interfering in judigiven that Lotte has strong cash flow," said Lee Ji-young, an ana- cial affairs by writing a letter to the interior ministry which resultlyst at LIG Investment & Securities. ed in the transfer of Qureshi.

Greek PM reshuffle plan in doubt as deputies quit ATHENS, June 16 (Reuters) A string of parliamentary resignations on Thursday threatened to thwart Greek Prime Minister George Papandreou's plan to reshuffle his cabinet and pass austerity measures needed to save the nation from default.

The political turmoil raised uncertainty over the Socialist cabinet's five-year plan for tax hikes, spending cuts and state property selloffs demanded by its bailout lenders, spooking investors who fear the problems will infect global markets.

Analysts said it was increasingly unclear whether Papandreou would be able to

form a new governing team and get the deeply unpopular measures approved amid the political chaos, which follows nationwide strikes and violent protests in Athens on Wednesday.

"It will be very hard now to find good people to form a government now. They don't trust (Papandreou) after all the flip-flops he has made," said former finance minister Stefanos Manos. "Who will make privatisations now in all this turmoil?"

Ruling party lawmakers will hold a caucus meeting of the parliamentary group on Thursday evening to debate the

government's policies.

"We are not governing the country the way we should...

We are going from depth to depth, from dilemma to dilemma," ruling party deputy Nikos Salayannis said outside parliament.

Two other Socialist deputies stepped down on Thursday in protest and will be replaced by other party members.

World stocks hit a threemonth low, the euro tumbled and government bonds with top credit ratings rose as concerns intensified over the crisis, while the cost of insuring Greek debt against default hit yet another record high.-Reuters

The court had expressed displeasure over Malik Iqbal's failure to get cancelled the transfer orders of Qureshi to the National Police Foundation (NPF).

The federal government recently transferred and posted FIA DG Malik Muhammad Iqbal as the head of the National Counter-Terrorism Authority (NACTA). - Agencies

No #9

Continued from page 1

The Public Accounts Committee met at the Parliament House with Yasmeen Rehman in the chair to discuss Audit Paras on the Ministry of Local Government and Rural Development 2008-09 and Cabinet Division 2008-09.

The other members included Sardar Ayyaz Sadiq, Noor Alam Khan, Shehnaz Sheikh, Saeed Ahmad Zafar, Nadeem Afzal Chan, Audit officials and other officials of the concerned departments.

The Committee observed that on the one hand the National Rural Support Programme was staffed by retired officials from various departments who enjoyed hefty perks and privileges and on the other it was hesitant to opt for the audit of public fund expenditures.

When asked why the ministry was reluctant to get the accounts of the NRSP audited, Secretary Planning Sohail Ahmad clarified that the funds were directly provided to National Rural Support Programme from the Planning Commission and the ministry had minimum role in its affairs.

However, he assured the Committee that in future the Ministry would assist the audit officials in scrutinizing the public money provided to the organisation.

The NRSP was registered in November 1991 as an NGO originally with an endowment from the federal government which is a core source of its funding. It is also funded by provincial governments as well as international donor agencies.

This was decided in the meeting that the Paras would be examined after audit report from the Audit Department.

The Auditor General of Pakistan (AGP) informed PAC that "after receiving documents from the ministry and the department, we will start audit that will take some time" and added that the audit would be conducted on priority basis.

The Committee settled an Audit Para of Pakistan Telecommunication Authority (PTA) over the condition of verification by the Audit Department regarding misuse of public money amounting Rs2.133 million used in purchasing 24 items like laptops and other office equipment. From them 8 items were returned and the other 16 returned by their book value by the then chairman Shahzad Alam who was also present in the meeting.

The PAC expressed concern over non-recovery of pay and allowances and house building advances, amounting to Rs2.825 million.

The Chairman PTA told PAC that advice in the matter has been sought from the Law Ministry and the reply is still awaited. On this, the relevant Para was deferred and the Committee directed the PTA to take opinion in 7 days and submit the report in this regard.

The PAC directed PTA to submit report in a week about the Audit Para of unauthorised retention of official vehicles having value of Rs2.479 million and report should be about various issues, suggestions to get back the vehicle and also asked to collect rental charges of the vehicle since their retention. - APP

No #10

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HEC is one of the industrial units of State Engineering Corporation engaged in the manufacturing of power transformers of different types (total annual capacity 3000 MVA) with primary voltage rating of 66 and 132 KV. In addition, HEC undertakes repairs and refurbishment of old and damaged power transformers up to 500 KV. HEC was incorporated as a private limited company in year 1991 and commenced commercial operations in year 1997. It is located in Hattar Industrial Estate about 65 km from Islamabad.

HEC has six main manufacturing shops namely Machine shop, Winding shop, Insulation shop, Core shop, Fabrication shop and Assembly shop. In addition, HEC has an oil purification shop, high voltage test laboratory equipped with overhead traveling cranes.

HEC can diversify its manufacturing range by including other products such as instrument transformers, high voltage circuit breakers and other grid stations equipment for meeting demand of the products in domestic and foreign markets. - Agencies

No #11

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between Foreign Secretary Salman Bashir and his Indian counterpart Nirupama Rao. "Issue of Jammu and Kashmir, peace and security, and measures for friendly interaction are on the agenda of the talks to be held later this month," she said.

According to the spokesperson, engagement between Pakistan and India resumed in February this year and was progressing in productive manner.

"We had also invited the Kashmiri leadership to take them into confidence for the upcoming talks with Indian," she added in response to a question.

To a question regarding the US role to broker peace between nuclear archrivals, she said, "the US gestures encouraging both Pakistan and India to engage in a meaningful dialogue are welcome. But Pakistan's stance has been very clear that the two countries should take ownership of issue between them," she added. Earlier she told journalists that Secretary Bashir would visit Kabul to attend the Afghanistan, Pakistan, and US trilateral core group meeting on June 28. Foreign Secretary would be visiting Kabul on the invitation of Afghanistan's Deputy Foreign Minister for Political Affairs Jaweed Ludin.

Asked touchy question about providing Afghanistan access to Taliban commanders arrested in Pakistan, the spokesperson referred to the June 28 meeting that it would take up all such issues.

Responding to a question of continued drone strikes despite Pakistan's repeated protest against them, she said, "it remained a point of disagreement between Pakistan and US. We have repeatedly conveyed to US that drones cause human tragedy," she said while preferring a mild term instead of calling it a collateral damage. "We are continuing to discuss it with US at every level and hope that our concerns are addressed at the earliest," she added.

Responding to the questions about so-called American media surge against Pakistan, she repeated her pet statement that negative media messaging could not replicate official engagements.

"However, positive messages even through media are welcome," she added.

Repeatedly asked about the arrest of CIA informants and reports of withholding US assistance to Pakistan, she referred to statements of the State Department Spokesman well as the CIA spokeswomen.

She also told journalists that Pakistan has already submitted a formal application for the full membership of the Shanghai Cooperation Organization (SCO) as President Asif Ali Zardari participated in its Summit at Astana, Kazakhstan having observer status. "A number of members fully support our application," she added. "In the meantime, Pakistan intends to fully associate with all SCO programs for peace and development," she maintained. -Agencies

No #12

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According to a Chinese private TV channel, Rehman Malik said, the pain of terrorism is same as blood is red. The families feel the same way. Therefore, we have to fight together against this menace of terrorism, and also resolve our issues, and let us see a free movement, good friendship, smile on the faces, and there is no breach of border, and we talk like friends.

No #13

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near Bugti stadium.

He received multiple shots and was shifted to Civil Hospital, but had to be moved to Combined Military Hospital (CMH) due to the strike of doctors where he succumbed to injuries.

The 50-year-old Hussain represented Pakistan in the 1984, '88 and '92 Olympics.

Police handed over the dead body to his heirs after necessary proceedings and started search operation after lodging case against the unidentified suspects.

Police said no arrests have been made, and that the motive for the killing was unclear.

Balochistan Chief Minister Nawaz Aslam Raisani expressed grief and sorrow over his killing and ordered the authorities to arrest the killers immediately. -Agencies

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now come into the open as to who want to implement the rule of jungle in the country. He regretted that the PML-N leadership has not learnt any lesson during exile.

He said he would request the apex court to take suo moto notice of the statement of Rana Sanaullah.

Babar Awan said he would not flee from the country under threats but fight for the rights of the people. He said he has taken up the case of people of Punjab and would contest it to the last. -AGencies

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Gaddafi's son holds out offer of elections

TAIZ: Anti-government protesters flash the victory sign during a demonstration to demand the ouster of Yemen's President Ali Abdullah Saleh in the southern city of Taiz. Reuters

Senators seek probe into journos murder ISLAMABAD: Senators belonging to different political parties while welcoming the establishment of Judicial Commission to investigate the murder of journalist Saleem Shahzad have demanded of the Government to investigate the murder of 70 other journalists who were murdered in different areas of the country.

The senators also criticized federal minister for finance Dr Abdul Hafeez Sheikh for winding up debate on budget in the senate before completion of debate.

Speaking at a Point of Order, Opposition leader in the Senate Maulana Abdul Ghafoor Haidri said that the federal finance minister had winded up debate on the Senate on budget but in fact some senators are yet to express their views on budget. PML-N Senator Ishaq Dar welcomed the establishment of judicial commission to investigate the murder of Journalist Saleem Shahzad but it has become habit of Government to do work every work after long march or sit in stage.

We are not ready to learn from our mistakes, he said.

He hoped that the Chief Justice of Pakistan Justice Iftikhar Mohammad Chaudhry was consult-

ed before nominating Justice Saqib Nisar as head of the judicial commission.

ANP Senator Zahid Khan expressing his views in the Upper House demanded of the Government to set up commission to investigate the murder of 70 other journalists, who were murdered in the country.

He said that the commission setup to investigate Osama Bin Laden debacle should be activated.

ANP Senator Haji Adeel informed the Upper House that Government did not take coalition Partners into confidence in decision making Processes. We are seeing dictatorship in democracy, he said. People within Government are trying to sink its boat, he said.

JI Senator Professor Khursheed said that the journalists' community had taken stand for their legal demand. The Government should constitute an independent commission to investigate the murder of media man, he said.

The senators also took up the issue with regard to abuse of 50 year old woman in Hari Pur. JUI Senator while condemning the incident demanded of the Government to strictly punish those involved the gruesome incident. -Online

5 dead as militants attack Bajaur town BAJAUR: At least 5 people were killed and dozen others including women and children sustained serious injuries when over 300 militants, who crossed into Pakistan from Afghanistan, attacked a border village. The militants also abducted 25 volunteers.

The incident happened days after Afghan President Hamid Karzai condemned such previous attacks and assured of launching a curb on them in the future.

According to the media report, at least three hundred militants crossed the border and attacked a Puri village in Bajaur agency and not only targeted security forces but also civilians by using mortars, rockets and machine guns.

The militants killed 5 people including three personnel of Peace

Lashkar, besides abducting 25 volunteers. 8 people including women and children were also wounded in the attack but sources feared more casualties.

Security sources said that the security forces launched a retaliatory operation and that they were helped by locals as well. There was heavy exchange of fire that lasted for more than thirty minutes before militants fled back to Afghan territory.

This was the third such attack by a large number of Afghan militants crossing into Pakistani territory and targeting security forces.

President Karzai during his recent trip to Islamabad strongly condemned the attacks and said that an action will be taken to stop such incidents in the future. -Reuters

US says ties with Pak hard but firm WASHINGTON: The Obama administration Wednesday acknowledged that US relations with Islamabad were "complicated", but said ties remained strong after news that CIA informants had been arrested in Pakistan.

"The cooperation that we do get is vital and essential to our war against terrorists and terrorism," White House spokesman Jay Carney said.

"Our relationship with Pakistan is extremely important. It is also complicated."

The New York Times reported on Wednesday that Pakistan's top spy agency had arrested five Pakistani informants who assisted the CIA ahead of a raid on Osama bin Laden's compound in the garrison town of Abbottabad.

State Department spokesman Marc Toner would not comment the

report that the five Pakistani informants, including an army major, had worked with the CIA ahead of May 2 assault that killed bin Laden.

"We have a strong relationship with our Pakistani counterparts, we work through issues when they arise," Toner said.

He said that since the raid there has been "an intensity of engagement that illustrates our commitment to working through these issues."

"We've been upfront about challenges in the relationship but we've been also consistent in saying Pakistan and US need each other," he said.

"We need to work through these challenges because it's in both of our long term and short term interest to do so." -Online

Army wants Kayani to get tough with US WASHINGTON: Pakistan's army chief is fighting to save his position in the face of "seething anger" in the army establishment over the American raid that killed Osama bin Laden, according to the New York Times.

Gen Ashfaq Parvez Kayani, who has led the army since 2007, "faces such intense discontent over what is seen as his cosy relationship with the US that a colonels' coup, while unlikely, was not out of the question," the influential US daily said in a report from Islamabad citing Pakistani officials.

The Pakistani Army is essentially run by consensus among 11 top commanders, known as the Corps Commanders, and almost all of them, if not all, were demanding that General Kayani get much tougher with the Americans, even edging toward a break, the Times said.

Washington, with its own hard line against Pakistan, had pushed General Kayani into a defensive crouch, along with his troops, and if the general was pushed out, the United States would face a more uncompromising antiAmerican army chief, it said citing a Pakistani source.

To repair the reputation of the army, and to ensure his own survival, General Kayani made an extraordinary tour of more than a dozen garrisons, mess halls and other institutions in the six weeks since the May 2 raid that killed bin Laden.

His goal was to rally support among his rank-and-file troops, who are almost uniformly anti-American, according to participants and people briefed on the sessions.

During a long session in late May at the National Defense University, the premier academy in Islamabad, the capital, one officer got up after General Kayani's address and challenged his policy of cooperation with the United States.

The officer asked, "If they don't trust us, how can we trust them?" according to Shaukat Qadri, a retired army brigadier who was briefed on the session. General Kayani essentially responded, "We can't," Qadri said.

In response to pressure from his troops, Pakistani and American officials said, General Kayani had already become a more obstinate partner, standing ever more firm with each high-level American delegation that has visited since the raid to try and See # 3 Page 11

TRIPOLI: Libya's Muammar Gaddafi is willing to hold elections and step aside if he lost, his son said on Thursday, an offer unlikely to placate his opponents but which could test the unity of the Western alliance trying to force him out.

The proposal -- which follows a string of concessions offered by the Libyan leader that Western powers have dismissed as ploys -- comes at a time when frustration is mounting in some NATO states at the progress of the military campaign.

Four months into Libya's conflict, rebel advances toward Tripoli are slow at best, while weeks of NATO air strikes pounding Gaddafi's compound and other targets have failed to end his 41-year-old rule over the oil-producing country.

A series of explosions was heard from Gaddafi's compound in Tripoli in the early hours of Thursday and plumes of smoke rose into the sky, a Reuters reporter in the city said.

Gates exit seen bad for Pak WASHINGTON: Departure of Robert Gates as the US Defence Secretary, after more than four and half years of leading the Pentagon, is bad news for Pakistan, a top US counter-terror analyst has said.

"The departure of Gates and the arrival of Panetta who's going to bring with him the new CIA view I think is bad news for Pakistan," Bruce Riedel of the See # 2 Page 11

"They (elections) could be held within three months. At the maximum by the end of the year, and the guarantee of transparency could be the presence of international observers," Gaddafi's son Saif alIslam told Italian newspaper Corriere della Sera. He said his father, who came to power in the same year that man first set foot on the moon, would be ready to step aside if he lost the election but would not go into exile. "I have no doubt that the overwhelming majority of Libyans stand with my father and sees the rebels as fanatical Islamist fundamentalists, terrorists stirred up from abroad," the newspaper quoted Saif al-Islam as saying. The offer was made as Mikhail Margelov, the envoy leading Russia's efforts to end the conflict, arrived in Tripoli for talks with Gaddafi's government. The Kremlin, which says Gaddafi should quit but opposes NATO's action in Libya, has said it is ready

to help negotiate the Libyan leader's departure. "Clearly the talks in Tripoli will not be easy," Russia's Interfax news agency quoted Margelov as saying before he left for Tripoli. "In the Arab world there is a tradition of forgiveness and conciliation, and many formerly odious leaders of regimes in the region continue to live in their countries ... despite having been overthrown," he was quoted as saying. It was not clear what form the vote proposed by Saif al-Islam Gaddafi would take. Libya has never held elections under Gaddafi and has no elected institutions.

There was no immediate reaction to the offer from the NATO military alliance or the rebels. Saif al-Islam is one of three Libyan leaders wanted by an international war crimes prosecutor, but before the conflict he had frequent contacts with Western governments and helped negotiate the end of international sanctions seven years ago. -Reuters

7 more ministries to provinces soon ISLAMABAD: Provinces have agreed to take over seven more ministries, which are yet to be devolved to Provinces in last-phase under the 18th constitutional amendment.

The Provinces has also assured 18th amendment implementation commission that those employees, who are willing to come into provinces, would get legal protection.

The commission met Thursday under the chairmanship of Chairman Senator Mian Raza Rabbani. The meeting was

attended by Secretary Establishment, Provincial Chiefs Secretaries.

During the meeting, sources said, Provincial Chiefs Secretary assured their complete support to implementation commission. The representatives of Provinces said that they are ready to take over control of seven more ministries.

They said that those who are willing to come to provinces would be adjusted in provinces.

The commission gave approval of See # 1 Page 11

Pak to enhance trade, defence ties with Bahrain: President ISLAMABAD: President Asif Ali Zardari on Thursday emphasized the need to further enhance trade and defence ties with Bahrain and to expand bilateral cooperation in labour and manpower between the two countries.

The President was talking to Commander National Guards of Bahrain Lt. Gen. Sheikh Mohammad Bin Isa Bin Salman Al-Khalifa who called on the President at the Aiwan-eSadr.

Ambassador of Bahrain to Pakistan Mr. Mohammad Ebrahim Mohammad Abdul Qadir also accompanied the commander. Pak-Bahrain bilateral relations particularly defence cooperation and regional issues were discussed during the meeting. -NNI

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