International Karachi, Friday, May 20, 2011, Jumadi-ul-Saani 16, Price Rs12 Pages 12
SID to compile journalists directory, says Sharjeel
Obama says Afghan pull-out from July Power protests cause chaos
See page 12
China Mobile eyes Pakistan operations
See page 12
-Page 2 Economic Indicators
Gilani addresses Entrepreneurs Forum; students
$16.97bn 14.08% $20.15bn $32.26bn $(12.11)bn $748mn $9.05bn $1.53bn Rs 1012bn $59.54bn Rs 5463bn $491mn 6.75% 4.10% $1,051 176.08mn
Forex Reserves (14-May-11) Inflation CPI% (Jul 10-Apr 11) Exports (Jul 10-Apr 11) Imports (Jul 10 - Apr 11) Trade Balance (Jul 10 - Apr 11) Current A/C (Jul 10- Mar 11) Remittances (Jul 10 - Apr 11) Foreign Invest (Jul 10-Apr 11) Revenue (Jul 10 Mar 11) Foreign Debt (Mar 11) Domestic Debt (Mar 10) Repatriated Profit (Jul- Mar 11) LSM Growth (Mar)
GDP Growth FY10E Per Capita Income FY10 Population
Pak-China trade ties eye new high Isb likely to get latest radar system from Beijing US assured of no more unilateral action: Gilani
Portfolio Investment SCRA(U.S $ in million)
245.94 Yearly(Jul, 2010 up to 17-May-2011) Monthly(May, 2011 up to 17-May-2011) 20.36 0.39 Daily (17-May-2011) 2772 Total Portfolio Invest (7-May-2011)
BEIJING: Prime Minister Syed Yousuf Raza Gilani addressing at the Pakistan-China Entrepreneurs Forum. -APP
NCCPL (U.S $ in million)
FIPI (19-May-2011) Local Companies (19-May-2011) Banks / DFI (19-May-2011) Mutual Funds (19-May-2011) NBFC (19-May-2011) Local Investors (19-May-2011) Other Organization (19-May-2011)
-0.20 -0.43 -0.10 -0.50 0.03 1.20 -0.01
Global Indices Index KSE 100 Nikkei 225 Hang Seng Sensex 30 ADX SSE COMP. FTSE 100 *Dow Jones
Close 11878.81 9620.82 23163.38 18141.40 2654.82 2859.57 5955.99 12572.14
Change 5.80 41.26 152.24 55.20 4.88 13.20 32.50 11.96
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)
$.Price PKR/Shares 2.60 111.04 16.64 142.13 2.00 42.71 1.70 36.30 10.79 36.85
Money Market Update T-Bills (3 Mths) T-Bills (6 Mths) T-Bills (12 Mths) Discount Rate Kibor (1 Mth) Kibor (3 Mths) Kibor (6 Mths) Kibor ( 9 Mths) Kibor (1Yr) P.I.B ( 3 Yrs) P.I.B (5 Yrs) P.I.B (10 Yrs) P.I.B (15 Yrs) P.I.B (20 Yrs) P.I.B (30 Yrs)
18-May-2011 18-May-2011 18-May-2011 26-Mar-2011 19-May-2011 19-May-2011 19-May-2011 19-May-2011 19-May-2011 19-May-2011 19-May-2011 19-May-2011 19-May-2011 19-May-2011 19-May-2011
13.21% 13.60% 13.84% 14.00% 13.53% 13.37% 13.68% 14.08% 14.20% 14.00% 14.07% 14.11% 14.48% 14.70% 14.90%
Commodities *Crude Oil (brent)$/bbl 111.79 *Crude Oil (WTI)$/bbl 98.95 *Cotton $/lb 155.01 *Gold $/ozs 1,489.90 *Silver $/ozs 34.81 Malaysian Palm $ 1,108 GOLD (NCEL) PKR 41,360 KHI Cotton 40Kg PKR 9,109 Open Mkt Currency Rates Symbols Buy (Rs) Sell (Rs)
Australian $ 91.30 Canadian $ 88.50 Danish Krone 16.30 Euro 122.20 Hong Kong $ 10.90 Japanese Yen 1.031 Saudi Riyal 22.90 Singapore $ 69.00 Swedish Korona 13.40 Swiss Franc 96.00 U.A.E Dirham 23.40 UK Pound 138.70 US $ 86.00
92.30 89.50 16.60 124.00 11.25 1.057 23.10 70.00 13.70 97.00 23.60 140.00 86.45
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
90.86 87.98 16.33 121.75 10.96 1.044 22.72 68.83 13.58 96.88 23.20 137.87 85.41
91.07 88.19 16.36 122.04 10.98 1.047 22.77 68.99 13.61 97.11 23.25 138.19 85.60
Weather Forecast Cities
Islamabad Karachi Lahore Faisalabad Quetta Rawalpindi
Max-Temp Min-Temp
41°C 35°C 46°C 46°C 37°C 42°C
23°C 28°C 28°C 28°C 18°C 26°C
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IMF chief calls it quit in rape row NEW YORK: The International Monetary Fund said Dominique Strauss-Kahn has resigned as its head following charges against him of sexual assault and attempted rape. "I deny with the greatest possible firmness all of the allegations that have been made against me," Strauss-Kahn said in his letter of resignation, which was released by the IMF and dated May 18. "I want to devote all my strength, all my time, and all my energy to proving my innocence." He will on Thursday for a second time request release on $1 million cash bail and placement under 24-hour house arrest while he awaits trial on charges of attempting to rape a hotel maid, his lawyers said. He is being held in New York's notorious Rikers Island
jail. "Yes there will definitely be a bail hearing tomorrow (Friday)," Manhattan District Attorney's Office spokeswoman Erin Duggan told Reuters on Wednesday. A mug shot of Strauss-Kahn, 62, taken more than 24 hours after he was pulled from a plane and detained on Saturday, showed him exhausted, his eyes downcast and half-closed and wearing a rumpled, openneck shirt. The photograph may fuel outrage in France over how a man who had been viewed as a strong contender for the French presidency has been paraded before the cameras before he has had a chance to defend himself in court. The woman Strauss-Kahn allegedly tried to rape, a 32year-old widow from West See # 7 Page 11
Key rate likely to stay at 14pc Muhammad Arif KARACHI: With few days to remain in the announcement of Federal Budget for the fiscal year 2011/12 (FY12), monetary policy is due to be announced tomorrow (Saturday) for the next two months. According to the last monetary policy, announced in March, SBP kept the discount rate at 14 per cent on the reason that economic variables are on path of recovery with inflationary pressure to remain high on withdrawal of subsidies. The scenario has not changed much. Further, some measures are also expected in the coming budget especially in respect of withdrawal of subsidies or through end of tax exemptions extended to some household
items like food as agreed by the Pakistani team in their meetings with IMF in Dubai this week. These steps would obviously increase inflationary pressure further that has slightly come down to 13 per cent in 2011 compared with 13.2 per cent in 2010 as of April 2011. Though Pakistani team has succeeded in getting away with IMF demand to impose RGST due to political constraints but that is not a good sign as to enhance tax-to-GDP ratio RGST or a system like that is essential at least for moving further on documentation process is required to include services, wholesale and retail sector in tax net. With regard to agriculture See # 6 Page 11
UAE buys 40k T wheat from Pak HAMBURG: A flour mill in the United Arab Emirates has purchased 40,000 tonnes of milling wheat from Pakistan in a tender for the same volume, which closed on Tuesday, European traders said on Thursday. The price was said to be between $345 and $350 a tonne. The tender had sought wheat of 12.5 per cent protein for shipment from June 1-20. Offers had been sought from origins including the United States, Australia, Canada, Europe, Kazakhstan, Pakistan or the Black Sea region. "Pakistani wheat offers were by far the cheapest," one trader
said. "The Pakistani harvest, which started in April, appears to have been very good, and large volumes are being offered cheaply in the Middle East and Africa." Traders in late April had said exporters had made large sales of new crop wheat from Pakistan totaling 200,000 to 220,000 tonnes to a series of buyers in countries including the United Arab Emirates, Tanzania, Malaysia and Vietnam. Pakistan's government forecasts the 2011 wheat crop at around 25 million tonnes, up from 23.8 million tonnes in 2010 and well above its annual consumption of 22 million tonnes. -Reuters
Kayani vows action against Haqqani-net, says Mullen WASHINGTON: Army chief General Ashfaq Pervez Kayani is committed to act against the Haqqani network, Chairman of Joint Chiefs of Staff Admiral Mike Mullen has said. "He (Kayani) has committed to that," Mullen told reporters at Pentagon when asked about the reluctance on the part of Pakistan Army to take action against the Haqqani network. "I think one of the issues that is just a challenge for us is our clock moves a lot faster than his clock. That has been the case so far, and I think it will be the case in the future. I am not trying to give him an excuse, but matching those clocks has been pretty difficult," Mullen said. He reiterated that his statement, about a month ago in Pakistan, that there was a relationship between Pakistan's spy agency ISI and Haqqani network still stands. "I think my comments from a month ago still stand from that perspective. I was very clear about the priority for the leadership, in particular with respect to the Haqqani network and the need to get at that. And I wouldn't change that right now," he said. Mullen, in last two and half years, has travelled to Pakistan more than two dozen times to have meetings with General Kayani and he boasts of good relationship with the Pakistan Army chief. "From a standpoint of the relationship and in my discussions since the raid with General See # 5 Page 11
US, Pak trying to mend ties after OBL ISLAMABAD: Officials say two high-level Obama administration officials have launched a push to try repair relations with Pakistan following the US raid that killed Osama bin Laden. The visit by Marc Grossman, special envoy to Pakistan and Afghanistan, and Michael Morell, deputy director of the CIA, comes as a new survey by the Washington-based Pew Research Center highlights US unpopularity in Pakistan. Only 11 per cent of Pakistanis view the US favorably. US Embassy spokesman Alberto Rodriguez said Grossman was scheduled to meet top civilian and military leaders on Thursday in Islamabad. Pakistani officials said Morrel was scheduled to meet with Pakistani intelligence chief Gen. Ahmed Shuja Pasha. The officials spoke on condition of anonymity because of sensitivity of issue. -Agencies
BEIJING: China and Pakistan have pledged to infuse new dynamics into their partnership by enhancing cooperation among entrepreneurs of the two countries and taking the trade relations of the both friendly nations to new heights. "As close neighbors, it is our sincere desire to continue to work toward closer economic integration between Pakistan and China," Pakistani Prime Minister Yousuf Raza Gilani said at the China-Pakistan Entrepreneurs Forum held Thursday in Beijing. This year marks the 60th anniversary of the establishment of diplomatic relations between the two nations and has been named China-Pakistan Friendship Year. While the China-Pakistan allweather friendship has "beat the test of time," Gilani said, the corporate sectors of the two countries should work together to inject new dynamics into
their partnership and lead the process to take the friendship to new heights. "Chinese Premier Wen Jiabao's visit to Pakistan in December 2010 was a landmark in the long and glorious history of the Pakistan-China friendship," Gilani said. During Wen's visit to Pakistan, both leaders agreed that the corporate sector should play a leading role in the economic partnership of the two countries, and the two governments must provide facility for the flourishing of the mutually beneficial economic partnership, Gilani added. Pakistan and China have benefited substantially from trade, finance and technological cooperation, which have become important drivers in the development of the friendship and a multi-dimensional cooperative partnership, Gilani said. Bilateral trade is expected to hit $15 billion in the coming
US warns against Pakistan aid-cuts WASHINGTON: Despite anger in the US Congress at Islamabad, Robert Gates and the US military's top officer, Admiral Mike Mullen have warned against cutting off aid to Pakistan, saying Washington has important interests at stake. Top US defense officials have said there is no evidence Pakistan's leadership was aware Osama bin Laden was in their country before he was killed in a US military raid at the beginning of the month. They have cautioned against punitive action over the incident. Bin Laden's killing earlier this month in a compound in
Abbottabad, a garrison town near the Pakistani capital, deeply embarrassed Pakistan's military and spy agencies, and led to calls by members of the US Congress for a tougher approach toward the country, says a report by Deutsche Welle Thursday. The report said many US lawmakers have voiced their dismay that the al Qaeda leader was found in a military town not far from Pakistan's capital and have urged the Obama administration to review security aid to the country. This week, a group of Democratic senators wrote in a See # 3 Page 11
‘Tight Gas Policy’ gets minister nod ISLAMANBAD: Dr Asim, Minister for Petroleum Thursday approved and signed the 'Tight Gas Policy' and said that the Government is concentrating its efforts on exploration and extraction of gas in the country to overcome the energy shortage. He said this while chairing a meeting with the heads of gas exploration companies. The Minister said that the '2009 Gas Policy' will be revised and new 2011 Gas Policy will be issued with a better pricing structure to encourage investors to invest heavily
in the gas exploration and extraction sector. He said that Pakistan sits on huge reservoirs of gas which lay untapped and a coordinated and coherent effort is required both from the government and the private sector. He was of the view that the Government will encourage and facilitate exploration at non traditional avenues like offshore exploration and will soon offer bonanza and incentives for the explorers. Dr Asim also ensured the participants of the meeting that the See # 4 Page 11
FX reserves slide below $17 billion Staff Reporter KARACHI: The foreign exchange reserves of the country tumbled to $16.966 billion as compared to the previous week when the reserves were $ 17.01 billion. According to an announcement here Thursday by the Central Bank, the total liquid foreign reserves held by the
country stood at $16,966.6 million on May 14. Break-up of the foreign reserves position further showed that reserves held by the State Bank of Pakistan were $ 13,556.1 million, net foreign reserves held by other banks were $ 3,410.5 million. The forex reserves were $ 17.11 billion on May 7.
years, according to Gilani. In finance and banking, the two countries established the Pakistan-China Joint Investment Company, while the Industrial and Commercial Bank of China is beginning operations in Pakistan and has opened branches in Islamabad and Karachi, Gilani said. He believes there's great potential for Chinese enterprises to invest in Pakistan through joint ventures with Chinese corporations and financial institutions. By the end of 2010, Chinese enterprises had signed contracts with Pakistan worth a total of 19.87 billion dollars. China's direct investment in Pakistan hit 1.36 billion dollars, while Pakistan's investment in China reached 57.38 million dollars, according to the Chinese Commerce Ministry. For his part, Wan Gang, vice chairman of the National See # 2 Page 11
AMPL eyes poll pact with PTI, MQM ISLAMABAD: Former President Pervez Musharraf's party All Pakistan Muslims League (APML) has come up with a decision to make its alliance with Pakistan Tehrik e Insaf (PTI) and Muttahida Qaumi Movement (MQM) in the upcoming election. Well-informed sources told Online that the proposed coalition of APML with PTI and MQM would be on MMA sort of alliance. Therefore, a strategy has been chalked out to complete the consultation process. In this regard, Pervez Musharraf in the near future would hold separate meetings with Chief PTI Imran Khan and Quaid MQM Altaf Hussain. Sources further told that Pervez Musharraf has asked for assistance from his well-wishers and close friends to finalise the planning and further consultation process. Therefore, the former President has called for help from Saudi Arabia for returning to Pakistan so that he himself could complete all the preparations for next elections. The expected meeting of Pervez Musharraf and Saudi King Shah Abdullah on 25 May is considered as an important advancement in this regard, which would bring positive repercussions for the political career of Musharraf in Pakistan. Meanwhile, senior vice president APML Ahmad Raza Kasuri claimed that in the forthcoming general elections APML would defeat PPP and PML-Q while people would cast their vote for the APML and PTI. Talking to Online, Kasuri said that return of Pervez Musharraf to the country would bring the death of political career of PMLQ. He further added that the upcoming elections would be replay of 1969 elections in which people gave mandate to Shaheed Zulfiqar Ali Bhutto but this time people cast their vote in favour of Pervez Musharraf. -Agencies
2
Friday, May 20, 2011
To boost exports
Sindh govt signs MoU with Korean importers KARACHI: A memorandum of understanding (MoU) was signed at Seoul, South Korea, between Investment D e v e l o p m e n t , Government of Sindh, and the Korean Importers Association, in order to boost export from the province of Sindh. An announcement to this effect was made in a statement issued here on Thursday. It said that the MoU was inked by the Secretary
Investment Sindh, Mohammad Younis Dagha, on behalf of Government of Sindh, while the Korean Importers Association was represented by its Chairman. The ceremony was witnessed by Chief Minister Sindh, Syed Qaim Ali Shah, who is heading a high level delegation to South Korea for attracting Korean Investment in various sectors of Sindh economy.
dant raw material but due to lack of modern technology, it has not been able to achieve efficiencies in its production stage. He invited Korean companies to come forward to transfer technology and share their advancement with their Pakistani brothers. The Ambassador of Pakistan in Korea thanked the Managing Director of KOIMA for organizing successful meetings for Pakistani businessmen.-APP
Staff Reporter KARACHI: Foreign and Commonwealth Office Minister, Alistair Burt, arrived in Karachi on 17 May, as a part of his visit to Pakistan. During his visit Burt met Governor of Sindh, Dr. Ishrat Ul Ebad Khan reinforcing the United Kingdom's commitment to Pakistan. He met the British Business Community and Young Entrepreneurs. They discussed the economic environment to enhance the UK-Pakistan bilateral trade relationship. Burt also visited the Glaxo Smith-Kline Head Office to see the British Investment in Pakistan. Burt witnessed the
beginning of a new partnership between Mobicare, a British medical company and the Sindh Ministry of Health which will help improve people's access to health services and create hundreds of new jobs for Pakistanis. Burt said: "When the Prime Minister, David Cameron visited Pakistan last month he made a commitment to increase the trade of goods and services between our two countries to ÂŁ2.5bn by 2015. This is the reason why I have devoted half of my time on this visit to Pakistan to a businessfocused programme in Karachi. My visit here has shown me firsthand the
Closure of Saudi consulate under consideration
I S L A M A B A D : Delegation of industrialists belonging to Southern Districts of Khyber Pakhtunkhwa has called on Pakistan Muslim League (PML) President Senator Salim Saifullah Khan at PML Secretariat and showed concern about the pending work on Indus Highway and non-permission by the government for the construction of D.I.Khan. Salim Saifullah Khan while talking to delegation said that Indus Highway caters to Pakistan defence and it was the shortest rout between Peshawar and Karachi and pending of its construction work was affecting Pakistan defence and other economic activities. He said Indus Highway connects Punjab, Balochistan and Khyber-Pakhtukhwa.NNI
KARACHI: After the daylight killing of a Saudi diplomat, the Saudi government has summoned all the non-diplomatic elements of the Karachi's Saudi consulate back home owing to security concerns. Following the cracker attack on its consulate, the 70-member non-diplomats of Saudi Arabia's Karachi consulate has winged back to Saudi Arabia by Saudi
SID to compile data of journalists, says Sharjeel
Ufone CEO nominated for Asia Award
successes that UK companies in Pakistan are experiencing, and the wide range of opportunities in the market. There is huge potential for the UK and Pakistan to develop its trade and investment relationship. The 100 or so British companies already operating in Pakistan are testament to this. I was impressed by the advanced technology and the operation of Glaxo Smith-Kline, Pakistan's largest pharmaceutical company. This is another great example of how a British company is provide opportunities and boosting the economy for the people of Pakistan, which is essential for a better future."
Shiraz Ahmed
KARACHI: UK Foreign and Commonwealth office Minister Alistair Burt and Sindh Minister of Health Dr. Saghir Ahmed witnessing the agreement of Sindh Health Ministry and Mobicare, a British medical company at British Deputy High Commission.- Staff Photo
KCCI demands
Thalassemia screening be mentioned in CNIC Staff Reporter KARACHI: "To make Thalassemia-Free-Pakistan, Government must declare blood group and Thalassemia Screening information mandatory in CNIC", said Muhammad Saeed Shafiq, President, Karachi Chamber of Commerce & Industry in Thalassemia Awareness Conference organized at KCCI. Saeed lamented that health and education were neglected sectors and need due attention of the Government. Out of total budget 1.15 percent was Phone (Office) 0238-500052
allocated for education and only 0.25 percent was sanctioned for health which must be increased in the forthcoming budget. Saeed asserted upon the dire need of professional education and voiced to promote entrepreneurship and selfemployment amongst the youth. He also voiced for value-addition and branding in different sectors. He declared Pre-Marriage Thalassemia Screening Test Mandatory for ThalassemiaFree-Pakistan. Anjum Nisar, Vice Chairman BMG and former president KCCI, while No. TC/G-55/109 of 2011 OFFICE OF THE DISTRICT OFFICER ROADS DISTRICT UMERKOT Date: 14-5-2011
CORRIGENDUM. The tenders invited vide this office NIT No.TC/G-55/87 dated:14.4.2011 as per PPRA rules 2010. The NIT has already been posted on Sindh Public Procurement Regularity Authority's website as per instruction of Director (CB) Government of Sindh SPPRA letter No.Dir/(CB-659)/SPRA/3-25(U.Kot)/10- 11/1050 dated:27.04.2011 & Even No.1359 dated:-11.05.2011; the date of issue & Opening tenders from S.No.1 to 04 read as under:-
READ AS S.# LAST DATE OF ISSUE BLANK TENDER UPTO 1.
25.05.2011 Upto
RECEIVED BACK & OPENING OF THE TENDER
2:00 PM 25.05.2011 Upto
3:00 PM
INSTEAD OF S.# LAST DATE OF ISSUE BLANK TENDER UPTO 3.
16.05.2011 Upto
RECEIVED BACK & OPENING OF THE TENDER
2:00 PM 16.05.2011 Upto
3:00 PM
Other terms & Condition will however remain the same as usual.
INF-KRY No.1760/11
DISTRICT OFFICER ROADS DISTRICT UMERKOT
speaking at the conference jointly organized by Health & Education & Banking/Insurance/CSR Sub-Committees added that "KCCI should unanimously pass the resolution for mandatory information of blood group and Thalassemia in CNIC. Ateeq ur Rehman, Advisor on CSR, stated that "In Pakistan, we are experiencing a hard time but we have to overcome as much we can. Every year 5000 - 6000 Children are added in the total Thalassemia patients and our objective is to reduce this figure by 2000 per annum."
Seminar on insulin therapy Staff Reporter KARACHI: To make aware of people regarding Insulin Therapy, National Institute of Diabetes and Endocrinology (NIDE) Ojha Campus, Dow University of Health Sciences, Karachi organized a Seminar on "Insulin Therapy" Thursday at Ojha Campus of Dow University Hospital. Prof Ghulam Asghar Channa, Registrar, College of Physicians was the Chief Guest on the occasion. The scientific session was addressed by renowned Diabetologists and Endocrinologists, including Prof. M. Zaman Shaikh and Prof. Muhammad Masroor.
ISLAMABAD: Ch Qamar Zaman Kaira, MNA, and Ms Farahnaz Ispahani, MNA, called on President Asif Ali Zardari at Aiwan-e-Sadr.-APP
Industrialists concern over pending work of Indus Highway
UK minister visits Karachi
Mitsubishi scholarships for KU students KARACHI: Scholarships provided by Mitsubishi Corporation ere distributed among 56 students of the University of Karachi. A University official said on Thursday the cheque distribution ceremony was held at the Campus with Vice-Chancellor Prof. Dr. Pirzada Qasim Raza Siddiqui as chief guest. Speaking on the occasion he appreciated the gesture of the Mitsubishi Corporation for promoting education in Pakistan. The Vice-Chancellor also spoke of close friendly ties between Pakistan and Japan which are strengthening further with the passage of time. General Manager of Mitsaubishi Pakistan, Kimlhide Ando, who was also present on the occasion, said that University of Karachi is a prominent seat of learning.-APP
The leading businessmen from Pakistan accompanying the Chief Minister Sindh had fruitful meetings with their Korean counterparts who showed keen interest in Pakistani goods and products and have agreed to come to Karachi towards the end of this year. Speaking on the occasion, Advisor to Chief Minister Sindh, Muhammad Zubair Motiwala, said that Pakistan produces abun-
KARACHI: A directory of working journalists would be compiled by the Sindh Information Department. This was stated by the Sindh minister for information, Sharjeel Inam Memon. He was speaking at a lunch, he hosted for the journalists and office bearers of the media organizations at a local hotel on Thursday. The Minister was of the view that compilation of such a document would distinguish the genuine journalists from the `imposters' who bring a bad name to the community. He also asked the media persons' organizations like Karachi Karachi Union of Journalists (KUJ) and Karachi Press Club (KPC) will extend assistance towards the compilation of such a directory. Sharjeel Inam Memon said that the present democratic government fully believes in the freedom of press. He also recounted the measures that were taken by the government in this regard. The Minister announced that a `Shuhada' gallery is being set up at the Sindh information Department. He stated that such a
gallery would be adorned with the photographs of those journalists who laid down their lives in the line of duty or fell victim to the incidents of terrorism. Sharjeel Inam said that he would look into the matter to arrange some monthly compensation to the immediate heirs of 'Shaheed' journalists and provide government job to one of the members of their families. He also stated that he would talk to Sindh Chief Minister, Syed Qaim Ali Shah, for providing adequate security at Karachi Press Club. Sindh Education Minister, Pir Mazhar ul Haq, Nadeem Bhutto, MPA, of the Peoples Media Cell, also expressed their views on the occasion. Tahir Hassan Khan, President of Karachi Press Club, Hassan Abbas, General Secretary of Karachi Union of Journalists, shed light on the problems being faced by the journalist community. The lunch was attended among others by Sindh Ministers Syed Murad Ali Shah, Ayaz Soomro, Deputy Speaker of Sindh Assembly, Ms Shehla Raza, Adviser to Sindh chief Minister, Rashid Hussain Rabbani,and Special Assistant, Waqar Medhi.
70 non-diplomats return home after ambush of security official
City exporters demand solution to power crisis Staff Reporter
KARACHI: Large number of exporters have complained that there is total and complete breakdown of electricity at their 100% export oriented units all over the leading industrial areas like SITE, Korangi Industrial Area, Landhi Industrial Area, Federal 'B" Industrial Area, North Karachi etc making it impossible for them to keep their production line moving and meeting their export commitments. Karachi generates more than 50% of the revenue to the national exchequer and contributes 50% of the nation's export earnings, stated M. Jawed Bilwani, Chairman, Pakistan Apparel Forum, a press release said here Thursday. It is an irony that even such industries which have self generation of electricity are facing difficulties KARACHI: Salim Abbas Jilani (left), Chairman SSGC prebecause their workers, due senting a 'Shield' to Dr. Faizullah Abbasi, (centre) former Managing Director, at the farewell reception held in his honour to breakdown of electricity at the company's head office. The present Managing Director in their residences day and Azim Iqbal Siddiqui (right) and Yousuf J. Ansari (2nd from night are unable to report left) Company Secretary are also seen in the picture. Azim Iqbal Siddiqui took over the charge as acting MD SSGC on 16 for duty causing immense losses in production.- NNI May 2011.-Staff Photo
TFD Report
KARACHI: The venerated 'Asia Communication Awards (ACA)' committee has nominated Abdul Aziz, CEO & President Ufone for the CEO of the Year Award 2011. The ACA recognised the achievements of Asian telecom companies and individuals responsible for the innovations, achievements and great new services that are helping to build tomorrows industry. Abdul Aziz's nomination is truly a cause for national pride as once again he is the only Pakistani who has been nominated to gain recognition at this prestigious event. To be acknowledged by ACA is no mean feat; it is a milestone and an accomplishment on its own. Aziz is a fellow Chartered Accountant whose competitive nature and innovative ideas have fully met the financial challenges facing the global world today.
KARACHI: Mohammad Saeed Shafiq, President of Karachi Chamber of Commerce and Industry presenting Chamber’s Crest to Amer Ahmed, Director Intelligence and Investigation, Federal Board of Revenue (FBR), after a meeting at Aiwan-e-Tijart.-Staff Photo
airlines. The returned national included family members of consulate employees, while the Saudi Arabian government was also seriously contemplating closing its Karachi consulate. A final decision is pending. In case the Karachi consulate is closed, all Hajj and Umrah visas would be issued from Saudi Arabia's Islamabad embassy, sources said.-Online
Corrigendum In an advertisement published in The Financial Daily on May 14, 2011 the name of the advertiser was wrongly mentioned as Town Officer (I.S.& S) while it should actually be read as Administrator, Town Local Government, Gulshan-e-Iqbal. The error is regretted.
Aluminum industry's concern over import of caps TFD Report KARACHI: The local Aluminum Caps/Closure industry is facing threat of closure due to massive import of Aluminum Caps fitted with PE Wads, particularly from India at a very concessional rate of custom duty of 5% only. Reportedly several pharmaceutical companies are regularly importing Aluminum Caps fitted with PE Wads quantities, allegedly by mis-declaring Aluminum Caps as Aluminum Closing Lids, under cover of SRO No 567(I) /2006 dated 5th June, 2006 & SRO No: 483 (I) /2009, dated 13th June,
2009. The Aluminum Caps and Closing Lids are two different items as described in PCT Heading No: 83099000 and both items have different physical appearance and different purpose / applications. The Aluminum rate of Custom Duty for PE Wads (PCT NO: 3923.5000) and Aluminum Closure sheets (PCT NO: 7606.1200) is 25% and 10% respectively, so it is quite evident that if this import is not stopped the, local industry has no other alternative but to shut down their factories, which will be a great national loss.
3
Friday, May 20, 2011
Dollar takes a hit after weak US data; euro flat ECB expresses concerns about restructuring-news reports NEW YORK: The dollar slid on Thursday, hurt by a round of weak data suggesting the US economic recovery could be stalling, although Greece's uncertain debt situation should limit the greenback's losses against the euro. A slowdown in manufacturing growth in the US Mid-Atlantic region and an unexpected dip in existing home sales in April triggered the latest round of dollar selling and added to growing evidence that US economic prospects were far from upbeat. A still unresolved debt restructuring issue in Greece, however, should minimize the greenback's losses against the euro, analysts said, and keep it pinned below its 55-day moving average currently around $1.4595. In midday, trading, the ICE Futures'
dollar index was down 0.1 per cent at 75.391. Traders said major central banks have been alternately buying the euro on dips and selling it on any modest rally, suggesting the single eurozone currency will trade within a tight range until the European Union and International Monetary Fund complete a full analysis of Greece's debt. That analysis is due sometime in late May or early June and should shed light on whether Greece will restructure its massive liabilities.
A restructuring of Greece's huge debt, however, seemed to be off the table for now, according to euro-zone sources, lending the issue a more posi-
tive spin. Traders pointed to a report that quoted European Central Bank head JeanClaude Trichet saying the bank would not accept Greek bonds as collateral in the event of a restructuring. The same view was attributed to policymaker
Asia currencies
Mostly up; more gains seen in months ahead SGD firmer after Singapore raises 2011 growth forecast TOKYO: Asian currencies rose broadly against the dollar on Thursday after a rise in global equities pointed to an easing in risk reduction by investors, with the Malaysian ringgit rebounding further following a steep drop earlier this month. The Singapore dollar edged higher, helped by the signs of improvement in risk appetite as well as an upgrade to Singapore's forecast for 2011 economic growth. The Malaysian ringgit, one of the emerging Asian currencies that has been heavily hit during the dollar's short-covering rally seen so far this month, pulled further away from a two-month low hit the previous day. Scotia Capital's Tihanyi said he expected the dollar to come back under pressure against emerging Asian currencies in coming months. By the end of
the year, the dollar will probably drop to 2.89 against the Malaysian ringgit and fall to 1,060 versus the South Korean won. The dollar dipped 0.2 per cent against the Malaysian ringgit to 3.0245, pulling away from a two-month high of 3.0470 hit the previous day. The dollar earlier fell as low as 3.0125. Its drop stalled right near support at 3.0134, the 38.2 per cent retracement of its rally from a late April trough of 2.9590 up to Wednesday's two-month peak. The dollar also has support against the ringgit at 3.0115 and 3.0110, a couple of intraday lows hit in April. The ringgit is seen likely to head higher in coming months, helped by market expectations for Malaysia's central bank to raise interest rates further, with analysts bracing for Bank Negara
Indian rupee edges up in choppy trade MUMBAI: The Indian rupee inched up in choppy trade on Thursday, tracking the euro's moves against the dollar and supported by positive local shares, but importers' demand for the greenback capped major gains. The partially convertible rupee ended at 44.97/98 per dollar, a tad stronger than Wednesday's close of 45.055/065. It has traded in a range of 44.9250-45.0500 during the day. "The rupee is well supported at 45.10. The dollar will face a big resistance at the 45.1045.20 levels. The rupee is unlikely to depreciate beyond 45.10 levels," said Sunil Vaswani, senior manager of trading at Syndicate Bank. "If the euro improves overnight, then we could see
the rupee stronger. We could probably see rupee opening around 44.85-44.87 levels on Friday," he said. Traders said oil importers' demand for the greenback as well as some defence-related payments weighed on the Indian unit. The one-month onshore forward premium was at 23.75 points from the previous 22.25. The one-month offshore nondeliverable forward contracts were quoted at 45.17, weaker than the onshore spot rate. In the currency futures market, the most traded nearmonth dollar-rupee contracts on the National Stock Exchange the MCX-SX and United Stock Exchange were at 45.0400, 45.0350 and 45.0325, respectively. Total volume was $8.08 billion. -Reuters
(BNM) to raise rates as early as July after a 25 basis point hike to 3.0 per cent earlier in May. The Singapore dollar edged higher after Singapore revised up its 2011 forecast range GDP growth to 5-7 per cent from the previous forecast of 4-6 per cent. But some market players said reaction to the revised forecast was relatively subdued. The move higher in the Singapore dollar was more of a risk-on play, said a trader for a European bank. S ingapore also said its economy grew 22.5 per cent in the first quarter on an annualised basis, below the advance estimates of 23.5 per cent, but broadly in line with market expectations. The dollar fell to as low as 1.2364 against the Singapore dollar, but later pared its losses to stand at 1.2385 down 0.1 per cent on the day. -Reuters
Swiss franc little moved ZURICH: The Swiss franc was little moved against the euro on Thursday as improving risk appetite, flagged by overnight gains on Wall Street and a solid open on European bourses, was held in check by persisting Greek debt concerns. Even so analysts said a lack of further negative on the possibility Greek debt would need restructuring convinced some investors to add to their risk positions. The franc was stable against the euro compared to the New York close, trading at 1.2551 francs per euro at 0735 GMT. "Interest rate spreads remain largely in favour of the euro, but the euro risk premium is currently the more important factor for EUR/CHF," said Credit Suisse in a research note. The franc traded unchanged against the dollar at 0.8809 francs per dollar. -Reuters
Juergen Stark by a bank spokesman. In midday New York trading, the euro was up 0.1 per cent at $1.4260, comfortably above a seven-week low of $1.4048 hit on Monday, with traders citing sovereign bids around $1.4200. Support was also seen around $1.4246, the 200-hour moving average, and the 55-day moving average at $1.4295. The euro has taken a knock as investors cut back long positions in recent weeks. This has pulled the single currency down from a 17-month high around $1.4950 earlier this month. The dollar was up 0.1 per cent against the yen at 81.86 after hitting a three-week high at 82.179. Thursday's weak US data had an impact on this currency pair. -Reuters
Yuan up for 2nd day, more gains seen SHANGHAI: The yuan closed up against the dollar for a second day on Thursday after the People's Bank of China set a firmer mid-point, reinforcing expectations the central bank will stick to a policy of yuan appreciation, albeit gradually. Dealers said the yuan was expected to climb in the near term as the authorities use a stronger currency to battle stubbornly high inflation. Spot yuan close at 6.5039 versus the dollar compared with Wednesday's 6.5047. The Chinese currency has now appreciated 4.95 per cent since it was depegged from the dollar in June 2010, and 1.31 per cent since the start of this year. Before trade began, the PBOC set the yuan's daily mid-point at 6.5048 against the dollar, stronger than Wednesday's 6.5074. The central bank uses the mid-point to express the government's intention for the yuan's movements. "The uptrend will not change with such high inflation," said a dealer at a Chinese commercial bank in Shanghai. "But
now the mid-point largely tracks global markets, and if the mid-point has no big change, spot yuan would move around it." The PBOC has guided the yuan to a slew of record highs this year, with the currency rising by 0.9 per cent against the dollar in April, accelerating from 0.4 per cent in March. European Central Bank President Jean-Claude Trichet called on emerging economic powers with big surpluses to let their currencies gradually appreciate, according to a magazine interview made available on Wednesday. Trichet did not name specific countries, but China has been the target of international pressure to allow the yuan to appreciate on currency markets. Offshore, one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.3700, almost flat from 6.3670 at Wednesday's close. Their implied yuan appreciation in a year's time was at 2.11 per cent compared with 2.16 per cent. -Reuters
the May 2 to May 16 fall. The currency had come under pressure in the last two weeks following a deep correction in some commodity prices. The Aussie underperformed the kiwi, falling to a low of NZ$1.3439 from a session high of NZ$1.3495. Traders said there is solid demand from US names for the Aussie but it faces resistance around $1.0700, the 38.2 retracement of the May 2 to May 17. It has lost more than 3 per cent since hitting a 29-year peak of $1.1012 on May 2. It last traded at $1.0634. "It looks like there is a lot selling interest in the high $1.0600s. $1.0700 is shaping up as a barrier. If Europe gets in, it could go. We are cautiously quite bullish in the Aussie in the short-term," said James Thornhill, Asian editor at CitiFX Wire. Among the G3 currencies, the euro extended its recovery from a seven-week low versus the dollar but was seen vulnerable due to uncertainty about the Greek debt crisis. Reuters
Time Tentative 11:00 13:00 16:00 16:00 17:30 17:30 19:00
Source JPY EUR EUR CAD CAD CAD CAD EUR
Source
Events
GBP JPY AUD GBP CHF GBP USD USD USD USD USD
Nationwide Consumer Confidence Prelim GDP q/q MI Inflation Expectations Retail Sales m/m ZEW Economic Expectations CBI Industrial Order Expectations Unemployment Claims Existing Home Sales Philly Fed Manufacturing Index Mortgage Delinquencies CB Leading Index m/m
LONDON: Sterling rose against the euro and the dollar on Thursday after UK retail sales data beat expectations, but gave up most of those gains as some investors took the opportunity to sell into the bounce. Analysts and traders said the retail sales data did not change things fundamentally and UK growth prospects still looked patchy and consumer confidence fragile. That made it hard for sterling to hold gains with most expecting the Bank of England to keep interest rates on hold this year. Sterling was flat at $1.6175, having risen to $1.6208 during the session. Traders cited decent selling by a US investment bank, although support is seen below $1.6120 with
bidding interest from investors including sovereign accounts said to be layered there. The euro was down 0.1 per cent at 88.03 pence, having fallen to as low as 87.92 pence after the retail sales data was released. Near term support for the euro is seen at 87.78 pence--the 55-day moving average-while near term resistance was at 88.41 pence, the high struck on May 18. British retail sales for April rose 1.1 per cent, handily beating expectations of a 0.8 per cent, boosted by the extra holiday for the Royal Wedding and record high temperatures. It comes after a private sector survey published earlier on Thursday showed British consumer confidence falling in April, underlining the fragility of the UK recovery and a tough outlook for retailers. Bank of England Deputy
Events Overnight Call Rate German PPI m/m Current Account Core CPI m/m CPI m/m Core Retail Sales m/m Retail Sales m/m Consumer Confidence
Forecast <0.10% 0.6% -5.7B 0.1% 0.5% 0.8% 0.9% -12
Previous <0.10% 0.4% -7.2B 0.7% 1.1% 0.7% 0.4% -12
Actual
Forecast
Previous
43 -0.9% 3.3% 1.1% -11.5 -2 409K 5.05M 3.9 8.32% -0.3%
48 -0.5%
Previous Day
0.9% -5 421K 5.21M 20.2 0.2%
45 -0.8% 3.5% 0.3% 8.8 -11 438K 5.09M 18.5 8.25% 0.7%
Currencies Rate Name EUR-USD USD-CHF GBP-USD USD-CAD AUD-USD EUR-JPY EUR-GBP EUR-CHF GBP-JPY CHF-JPY Gold
Bid 1.4280 0.8823 1.6171 0.9678 1.0648 116.81 0.8826 1.2597 132.31 92.67 1491.33
As per 22.00 PST Ask High 1.4283 1.4307 0.8828 0.8877 1.6173 1.6209 0.9682 0.9705 1.0650 1.0681 116.84 117.21 0.8829 0.8839 1.2602 1.2642 132.39 132.93 92.72 93.01 1492.14 1499.44
Low 1.4210 0.8767 1.6135 0.9655 1.0626 116.22 0.8794 1.2537 131.90 92.43 1488.11
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 19/05/2011 A USD GBP CAD EUR JPY O/N 0.13025 0.57025 0.99667 1.14875 SN 0.10688 1WK 0.16575 0.58775 1.02750 1.15788 0.11625 2WK 0.17550 0.59750 1.05167 1.16000 0.12375 1MO 0.19525 0.62500 1.09083 1.19500 0.14063 2MO 0.22825 0.69938 1.12917 1.24250 0.16000 3MO 0.25850 0.82313 1.19917 1.38438 0.19563 4MO 0.29925 0.89563 1.27625 1.46938 0.24313 5MO 0.35525 1.00188 1.33958 1.55750 0.29750 6MO 0.40875 1.10938 1.40417 1.67513 0.34313 7MO 0.46400 1.19563 1.49167 1.74250 0.39188 8MO 0.51725 1.28250 1.57083 1.81750 0.44000 9MO 0.57075 1.36500 1.64708 1.90250 0.48313 10MO 0.62750 1.44750 1.73917 1.97938 0.51188 11MO 0.67950 1.51938 1.83000 2.04625 0.53750 12MO 0.73700 1.58781 1.92000 2.12375 0.56188
Division of National Bank of Pakistan (NBP) KARACHI, May 19,2011 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
Sterling bounce as UK data proves fleeting
Kiwi dlr firmer on budget, commodities; Aussie lags WELLINGTON/SYDNEY: The New Zealand dollar rose to its highest level in nearly a week on Thursday thanks to a rebound in commodity prices and after the government said it aimed to bring its budget back to surplus earlier than some market players had expected. The kiwi dollar rose as high as $0.7938 in the wake of the budget and last traded at $0.7918, up from $0.7874 late in New York. The Australian dollar followed suit, rising to a session peak of $1.0682 from $1.0618. The New Zealand government said it plans to cut spending and sell assets to balance its budget over the next four years, a year earlier than market expectations, easing the risk of a credit-rating downgrade. "The reason the kiwi went up was because the budget deficits are a bit smaller than what people were thinking and that saw the kiwi rise," said Joseph Capurso, currency strategist at Commonwealth Bank of Australia. It flirted with resistance at $0.7939, a level representing the 50 per cent retracement of
Top Economic Events
Governor Charlie Bean said consumer spending will be subdued in 2011 and the next few years are likely to be tough for UK households. "Clearly the retail sales data is not seen as sustainable and nothing has changed fundamentally," said Adrian Schmidt, FX strategist, at Lloyds TSB Financial Markets. "There is a bit of risk-off trade happening, though we see sterling being supported around the $1.6120 area." The retail sales data did little to change expectations of interest rate hike. Financial markets only fully price in a quarter percentage point interest rate rise in the UK by January next year, having cut back expectations for at least three 25 basis points rate hikes in 2011 that had been factored in earlier this year. In contrast, investors are pricing in at least two further quarter percentage point rate increases by the European Central Bank. Despite Greece's debt problems, investors are of the view the ECB will keep raising rates as it seeks to fight off inflationary pressures. The minutes of the BoE's May meeting showed an unchanged 6-3 majority seeing no need for an increase in UK interest rates. But two of the hawks, Spencer Dale and Martin Weale, said their decisions were finely balanced and the third, Andrew Sentance, is leaving the board. Data this week showed UK annual inflation hit a 2-1/2 year high of 4.5 per cent in April, above consensus forecasts for a 4.2 per cent reading. But BOE Governor Mervyn King says a rate hike in the near term could threaten a UK recovery. -Reuters
85.40 138.19 122.04 88.19 97.11 91.07 13.61 1.05 15.47 68.99 16.36 22.77 10.98 310.32 28.25 67.68 23.45 23.25 0.08
85.20 137.87 121.75 87.98 96.88 90.86 13.58 1.04 15.44 68.83 16.33 22.72 10.96 309.59 28.18 67.52 23.40 23.20 0.08
84.98 137.50 121.39 87.75 96.62 90.62 13.54 1.04 15.39 68.65 16.28 22.66 10.93 308.78 28.11 67.34 23.34 23.14 0.08
4
Friday, May 20, 2011
The Financial Daily International
PAKISTANâ&#x20AC;&#x2122;S SME SECTOR: ENGINE OF FUTURE ECONOMIC GROWTH
Vol 4, Issue 193
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
Pakistanâ&#x20AC;&#x2122;s External Account During first ten months of current financial year Pakistan's trade deficit has in fact declined marginally as compared to the corresponding period last year. While imports have grown by almost 15 per cent, exports growing at about 28 per cent have helped in containing the deficit. Due to surge in global cotton prices, Pakistan's exports grew to US$20,154 million from US$15,773 million. As against this, imports went up to US$32,263 million from US$28,122 million, mainly due to hike in oil and food import bill. The export of textiles and clothing grew by about 32 per cent and the food exports were up by 29 per cent. Within food group major contributing heads were fish and fish preparations, fruits, vegetables, tobacco, spices, meat and meat preparations. As against this, country's food and oil import bill went up by 20 per cent, food imports were up due to increase in sugar and edible oil quantities. Oil import bill was up due to increase in import of crude oil which surged by 37 per cent. However, import of petroleum product declined due to inter corporate debt of the energy sector. In absence of any other substantial inflows, workers' remittances have continued to support Pakistan's external account. According to the data released by the central bank, workers' remittances in April 2011 crossed US$ one billion, while cumulative flow increased close to US$ 10 billion, a record level. Although, remittances have continued to grow it is important to note that global events of turbulence either political or financial arising in regions where Pakistani community resides have resulted in temporal increase in remittances i.e. 9/11, sub-prime credit crisis in 2008 and catastrophic floods of 2010. It is expected that inflows may touch US$11 billion, due to the inflow gradually slowing down. Lackluster financial flows have largely offset the positive impact of higher remittances and continued improvement in exports. Meeting between representatives of Government of Pakistan and the IMF has not paved way for the release of suspended tranches but issue of Letter of Comfort by the Fund is likely to facilitate release of funds from other international financial institutions. Exchange rate parity against major foreign currencies has remained at satisfactory level during most of FY11 on the back of a healthy current account and robust remittances. However, going forward due to declining commodity prices any substantial increase in the export of textiles and clothing seems unlikely. On top of this ongoing energy crisis will continue to plunge industrial output as well as jack up oil import bill. Unless Pakistan resolves energy crisis accelerating GDP growth rate seems highly improbable. The sooner this issue is resolved the better it will be. The country has no option but to improve production and productivity to lessen dependence of borrowed money.
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.
Tom Speechley CEO, Riyada Enterprise Development (RED)
I
t is widely acknowledged that the Small and Medium-Size Enterprise (SME) segment plays a vital role in the economic and social development of any country. New business models often originate from entrepreneur-created enterprises and the successful ones not only catalyse economic development and diversification, but they also go on to create significant new employment opportunities. In the United States, between 1980 and 2005, forty million new jobs were created by businesses that were less than five years old. Indeed one can say that all large corporations began life as SMEs. In the case of developing countries, SMEs are even more vital to economic growth and social stability because they represent a much higher proportion of all business activity. It's less about innovation and new business models and more about the maturity of traditional segments of the economy. Lacking the liquidity and efficiency of more developed markets, an emerging economy may support multiple players in a given field, with the winners - and losers - only being defined after the influence of extraneous factors such as a FDI inflows, private equity activity or a strategic consolidator. This is borne out in statistics that see over 90% of all enterprises in the MENA region falling into the SME category. In Pakistan, SMEs similarly form the backbone of the economy. There are about 3.2 million enterprises in Pakistan, from which about 3 million are SMEs. The segment also employs close to 70% of the country's labour force. This too is close to the MENA average and speaks directly to their importance to social stability. One does not need to look very far afield to see the impact of a disaffected - and disenfranchised - youth with little in
the way of long-term employment opportunity. Moreover, in economies lacking the presence of multinational corporations to soak up the increasing numbers entering the workforce, only the State and SME segments can offer effective alternatives. In many MENA countries public sector payrolls are already at unsustainable levels, meaning that entrepreneurship and the SME segment in particular must shoulder the burden of job creation. The good news is that with historic investment in most sectors at a critically low level the only way for many SMEs is up. The same enterprises that contribute 70% to the region's labour force only contribute an average of around 30% to GDP. That productivity gap represents the basis of a sound investment thesis. Operationally wellmanaged SMEs that have, through structural defects, been denied the requisite financial and strategic stimuli to produce more goods and services, offer arguably the best investment opportunity in the region today. With their business models proven under often difficult circumstances, and with demographic forces that provide a ready - and well-trained - workforce on the one hand and abundant consumers on the other, smart money is able to unlock enormous pent-up demand and thus create value. From a government's perspective, the benefits are clear. In addition to employment creation and GDP growth, the SME segment provides the means to address structural issues in local economies including economic diversification and much needed innovation in a fast evolving globalised marketplace. Underlying this positive thesis, however, is the concern that much needed and readily available productivity enhancing technology is bad for job growth. But that is overly simplistic and misses the statistical fact that employment growth has followed productivity growth in emerging markets the world over. Just ask the Chinese, who have created
over 200M new jobs over the last two decades. To date, as with other economies in this part of the world, Pakistan's SME sector has not been able to realize its full potential. SMEs continue to suffer from a number of underlying weaknesses, which hamper their ability to take full advantage of the opening of the market economy and the increasingly accessible global marketplace for goods and services. Again in sync with the regional average, Pakistan's SMEs contribute about 30% to GDP. It seems that the majority of the businesses are in a "low-growth trap" - dealing in traditional forms of production and unable to climb up the technology ladder. The reasons are familiar, including, limited access to institutional capital and too much red tape impeding easy start-up and operational ramp-up. Private equity and venture capital was until recently virtually non-existent and the obtaining of a typical small business loan from a bank requires up to 27 steps and at least nine meetings for the entrepreneur. Just as limiting, SMEs also suffer from a deficient legal and regulatory framework. Although Pakistan is 85th in The World Bank ranking of most business friendly countries and ahead of Sri Lanka (102), Bangladesh (107) and India (134), there is still much more that can be done. For example, the World Banks' Doing Business Report ranks Pakistan 155th out of 182 countries in 2010-11 for contract enforcement and in the 201011 GCI ranking, Pakistan was placed 107th out of 139 economies in protecting 'property rights.' Entrepreneurs can be expected to take economic risks but regulatory risks should be swept away. There is broad acknowledgment that Pakistan has entrepreneurial and intellectual talent in abundance and with a population of 180 million there is no shortage of consumers of products and services of all kinds. What is missing is greater access to finance
and a more conducive enabling environment. The private sector must lead on the former and governments on the latter.
â&#x20AC;&#x2DC;
The good news is that with historic investment in most sectors at a critically low level the only way for many SMEs is up. The same enterprises that contribute 70 per cent to the region's labour force only contribute an average of around 30 per cent to GDP.
Japan earthquake impact on US autos may dent US GDP D
eclining motor vehicle production as assembly plants grapple with a shortage of parts due to Japan's earthquake may hurt U.S. second-quarter growth, but much of the pain could be blunted by booming exports. Supply chain disruptions caused by the March earthquake sent motor vehicle output tumbling 8.9 percent in April, Federal Reserve data showed on Tuesday. That resulted in a contraction in manufacturing for the first time in 10 months. There are fears auto production, which added 1.4 percentage points to growth in U.S. gross domestic product in the first three months of the year, may now be a drag. Some financial institutions, including Deutsche Bank, are already trimming their second quarter GDP estimates. "This is slowing industrial production and is going to subtract anywhere from half-a-percentage point to three-quarters-of-a percentage from the current quarter estimate," said Carl Riccadonna, a senior U.S. economist at Deutsche Bank in New York. Before Tuesday's industrial production data, Deutsche Bank had been expecting economic growth to accelerate to a 3.7 percent annual pace during
this quarter after a sluggish 1.8 percent rate in the January-March period. "We lowered it by half-a-percentage point to 3.2 percent. We are going for a more conservative narrowing because other manufacturing activity is still expanding despite the supply disruptions in the auto sector," said Riccadonna. The drop in auto production was the most tangible piece of evidence so far to suggest the impact of the devastating Japanese earthquake on the U.S. economy could be a bit larger than initially thought. Federal Reserve Chairman Ben Bernanke last month saw a "moderate and temporary" effect on the economy. Economists believe the supply chain disruptions will continue through June, with the situation starting to ease at least by August. Figures were not readily available on the volume and size of Japanese-made parts used at U.S. assembly plants. Parts from Japan range from transmissions and navigation systems to items as small as windows. According to Howard Simons, a research strategist at Bianco Research in Chicago, Japanese-made parts account for almost a third of components used in the production of motor
vehicles globally. "So much of the U.S. automobile production chain is integrated with the Japanese supply chain. So, it's going to be something similar to the global scale," said Simons. EXPORTS TO SOFTEN PAIN The fallout from the supply chain disruptions will likely be mitigated by firming export growth. Some of the surge in exports is expected to be fueled by Japan's reconstruction. U.S. exports jumped to a record $172.7 billion in March. "Manufacturing excluding autos continues to advance due to strong export demand, robust business equipment spending, and low inventories in the American supply chain," said Chris Christopher, a senior principal economist at IHS Global Insight in Lexington, Massachusetts. Christopher noted that a weak dollar and strong economic growth in emerging markets was supporting U.S. exports. Ironically, the shortage of vehicle parts could also slow imports into the United States and narrow the trade deficit. "Although auto production has fallen, the drop in imports of those parts will have some offsetting impact as far as
GDP goes," said Paul Ashworth, chief U.S. economist at Capital Economics in Toronto. The magnitude of the drop in vehicle production last month caught many by surprise, given the Institute for Supply Management's manufacturing survey for April had shown little evidence of supply chain disruptions. In addition, the government's employment report showed motor vehicle and parts payrolls increased 2,900 in April. Auto plant shutdowns as companies scale back production to deal with the shortage of parts has been blamed for some of the recent spike in new claims for unemployment benefits. There is a risk that economists may be underestimating the impact of the Japanese earthquake on the economy. "It's hard to get a firm read of what is happening here. The problem is we don't have a lot of similar periods to compare to, so have to go back to the Kobe earthquake in the mid-90s," said Deutsche Bank's Riccadonna. "Exports to Japan accelerated after that episode and there was not a material negative impact on the U.S. economy. Trying to draw those parallels to the Kobe earthquake may be giving us a little bit of a misread on the data." -Reuters
Stock market and forthcoming budget With annual budget hardly a week away, the dull and lackluster activity in volumes shrinking to eight months low depicts uncertainty and dissatisfaction amongst investors, especially with regard to tax intricacies and complexities still persisting in so called capital gain tax (CGT) which is effective from July 2010. Coupled with and alike salaried class stock market has been considered the most easy corner and quarter for collection of direct and indirect taxes and governments in past have been time to time adding burden of tax to equity market much often. The last tool was CGT which is drawing negative effects beyond anticipation with individual participants flaking themselves and institutions dropping their trading activities to lowest levels. The market is maintaining its levels and moving range bound with purely only due to active participation of foreign investors portfolios which is consistent from past some time. The governments in past utilized market as sustainable revenue generation tool effectively due to total documented activities resulting in prompt recovery during collection. CVT was introduced in year 2004, tax remained effective with market over performing in trading values and volumes till 2006 when CVT was doubled and market did not like showing approximately 33% decline in volumes and average traded
values. The easy collection method raised the appetite and FED was levied in 2010 with removal of CVT and CGT finally or lastly got effective for which returns are to be filed this year. It is significant to mention that market witnessed a boom period between 2004 to 2008 in which average traded value rose to 49,721 million rupees which has now shrunk to 4,679 million rupees showing les than 10 per cent. Ironically, an investor of stocks is the most affected of direct or indirect taxes commencing from taxation on profit of company in accounts prior to payouts given. This is in addition to all direct and indirect taxes paid by company engaged in core business. Another 10 per cent slash on dividend earned is subsequent installment paid in direct deduction from earned from investment. Any buying and selling act also make liable to deduction of withholding tax at 0.0115 per cent and another 11.5 per cent mark up of COT / CFS is hefty deduction on transactions and trade. With utter complex procedural formalities and its non comprehension to small investors things seems to be more in dark with investors feeling fear of roaming around in taxation offices and lost in procedures. Interestingly, the heavy tax burden is to be accepted by investor in the shade of poor economic out look, political uncertainty, critical law and order and highly
volatile commodity prices which enhances risk in investment. Domestically confronted issues affecting companies performances listed in exchange such as circular debt, raise in power tariff and depreciating power resources are additional threats and risk an investor is confronting with. The market expect much in forthcoming budget for revenue generation to improve national economy such as broadening tax base and exploring sectors which are still un tabbed in tax net which will be fruitful to market in totality and in parallel a review to announced CGT parameters is also urged. This includes exemption to small investors up to ten million portfolio investment in filing return for CGT as has been proposed by regulators. Steps must also be considered to exempt new listing companies through IPO for a term of five to ten year exemption from any stock market related tax. The confidence of investors in market is to be restored and that is how the investors can find way towards market. The high participation and enhanced volumes can earn the revenue higher than achieved from lack luster and dull market with no attraction for any one. Fahim Akhtar Karachi
5
Friday, May 20, 2011
South East Asian stocks
Main markets edge up; GDP forecast lifts S'pore KSE-100 Index Opening Closing Change % Change Turnover (mn)
11,884.61 11,878.81 5.80 0.05 40.08
LSE-25 Index Opening Closing Change % Change Turnover (mn)
3,170.73 3,179.58 8.85 0.28 2.61
ISE-10 Index Opening Closing Change % Change Turnover (mn)
2,668.73 2,661.64 7.09 0.27 0.13
Major Gainers
Symbol
Close
Change
SIEM 1,024.06 NESTLE 3,540.88 ULEVER 5,214.70 MTL 539.63 SAPT 123.89
48.76 39.22 30.10 8.16 5.89
Major Losers
Symbol RMPL COLG PMPK NRL PKGS
Close
Change
2,577.64 725.00 221.06 326.04 106.09
-127.81 -15 -11.6 -3.01 -2.68
Top 5 Volume Leaders
Symbol
Close Vol (mn)
SILK JSCL LOTPTA PASL ANL
2.95 6.94 14.73 1.68 5.56
7.37 3.98 2.54 1.83 1.62
Active Issues Plus Minus Unchanged
120 131 116
Sector Updates FERTILISER 000 tonnes
Urea Offtake (Jan to Feb 11) 807 Urea Offtake (Feb 11) 413 Urea Price (Rs/50 kg) 1,195 DAP Offtake (Jan to Feb 11) 128 DAP Offtake (Feb 11) 69 DAP Price (Rs/50 kg) 4,041
AUTOMOBILE ASSEMBLER PAK SUZUKI MOTOR Units Production (July 10 to Feb 11) 53,036 Sales (July 10 to Feb 11) 52,067 Production (Feb 11) 5,883 Sales (Feb 11) 6,954
INDUS MOTOR CO Production (July 10 to Feb 11) 33,832 Sales (July 10 to Feb 11) 32,991 Production (Feb 11) 4,754 Sales (Feb 11) 4,698
HONDA ATLAS CAR Production (July 10 to Feb 11) 10,834 Sales (July 10 to Feb 11) 10,444 Production (Feb 11) Sales (Feb 11)
1,555 1,665
DEWAN FAROOQ MOTORS Production (July 10 to Feb 11) Sales (July 10 to Feb 11) Production (Feb 11) Sales (Feb 11)
186 133 0 20
BANKING SECTOR Scheduled bank (Rs in mn) Deposit (March 25,11) 5,046,487 Advances (March 25,11) 3,118,444 Investments (March 25,11) 2,202,311 Spread (Feburay 11) 7.51%
OIL MARKETING CO (000 tons) MS (Jul 10 to Jan 11) MS (Jan 11) Kerosene (Jul 10 to Jan 11) Kerosene (Jan 11) JP (Jul 10 to Jan 11) JP (Jan 11) HSD (Jul 10 to Jan 11) HSD (Jan 11) LDO (Jul 10 to Jan 11)) LDO (Jan 11) Fuel Oil (Jul 10 to Jan 11) Fuel Oil (Jan 11) Others (Jul 10 to Jan 11) Others (Jan 11)
1,300 183 96 14 795 129 4,044 614 38 5 5,007 680 98 15
PRICES (Ex-Refinery)
Rs
MS (1 Apr 11) MS (1 Mar 11) MS % Chg Kerosene (1 Apr 11) Kerosene (1 Mar 11) Kerosene % Chg JP-1 (1 Apr 11) JP-1 (1 Mar 11) JP-1 % Chg HSD (1 Apr 11) HSD (1 Mar 11) HSD % Chg LDO (1 Apr 11) LDO (1 Mar 11) LDO % Chg Fuel Oil (1 Apr 11) Fuel Oil (1 Mar 11)
59.35 53.88 10.15% 68.95 63.31 8.91% 70.88 63.54 11.55% 75.02 66.53 12.76% 65.27 60.96 7.07% 56,777 53,252
European shares rise, led by energy sector
Cautious investors keep KSE under pressure Nawaz Ali KARACHI: Dull activities continued at the Karachi Stock Exchange on Thursday and market closed with marginal losses as local investors preferred to stay away from the trading floor ahead of the monetary policy announcement and budget related uncertainties. However, the benchmark KSE-100 index lost 5 points to close at 11,878 points, KSE-30
index lost 7 points and KSE allshare index fell by 2 points to close at 11,540 and 8,263 points respectively. "Sluggish activity witnessed along with record low volumes due to limited institutional and foreign support as uncertainty loomed over federal budget implications on Pakistan's corporate sector", said Ahsan Mehanti, Director Arif Habib Investments. After a positive opening mar-
Utilities, chipmakers drag Nikkei down TOKYO: The Nikkei average slipped on Thursday as Tokyo Electric tumbled; dragging down other utilities after the government's chief spokesman said its shareholders will be asked to help support the company as it compensates victims of a prolonged nuclear crisis. Chip equipment makers fell after Goldman Sachs cut its rating on the shares of Intel Corp, the world's biggest chipmaker, to "sell" from "neutral" on slowing processor shipments and increased competition from ARM-based processors. The utility and gas index fell 3.4 per cent to become the biggest-losing sector, dragged down by Tokyo Electric (Tepco) which tumbled 8 percent to 358 yen. "It looks like Tepco is dragging its peers and the whole market down. The comments (about shareholders' cooperation) are adding to the uncertainty about the future of electric power policy in Japan," said Mitsuo Shimizu, deputy general manager at Cosmo Securities. Shares in all nine major power companies were also hit after Prime Minister Naoto Kan on Wednesday called for debate on whether to deregulate
Japan's power industry, dominated by the nine regional firms that both generate and distribute electricity. Chubu Electric slumped 5.1 per cent to 1,282 yen and Kansai Electric shed 4.4 per cent to 1,399 yen. The benchmark Nikkei average closed down 0.4 per cent at 9,620.82, while the broader Topix shed 0.72 per cent to 831.89. The Nikkei had gained as much as 0.7 per cent in early trade on rising commodities, but reversed those gains before the midday break. Volatile moves were exaggerated by weak volume, which fell to the lowest since April 26. On the main board 1.7 billion shares changed hands, below last week's daily average of 2.1 billion shares. Chip equipment makers with a heavy weighting in the Nikkei tumbled after Intel's rating cut. Dainippon Screen Manufacturing fell 5.3 per cent to 676 yen, the second-largest drop on the Nikkei, while Advantest Corp dropped 3.4 per cent to 1,481 yen. "Intel has always been very important for the Japanese market, and this rating cut is having a major impact on chip-related See # 10 Page 11
ket saw some dreary activities all-day long and the index moving in a range of 11,925 points (+ve 40) and 11,874 points (-ve 9) with low investor participation ahead of the monetary policy announcement and budget uncertainties. On top of this rise in T-Bill yields a day earlier also kept the investors cautious. The State Bank of Pakistan (SBP) is scheduled to issue monetary policy statement on Saturday, May 21 for the next
Commodity thirst drives FTSE LONDON: Energy and banking stocks propelled Britain's FTSE 100 higher on Thursday as commodities trading giant Glencore made its London Stock Exchange debut. As the London market closed, Glencore's shares on the grey market were trading around the widely expected launch price of 530 pence. Glencore will be added to the FTSE 100 index as from the start of dealings on May 25. FTSE will issue a notice after the market close on Friday May 20 detailing which stock will be removed to make way for Glencore, based on closing prices that day. Likely candidates for demotion include Investec which was up 5.4 per cent, and Invensys, which fell 3.1 per cent after both reported fullyear results. The FTSE 100 index closed up 32.50 points, or 0.6 per cent, higher at 5,955.99 but off its session high of 6,003.92, and having advanced 1.1 per cent in the previous session, snapping a five-session losing streak. "The index found support around the 50-day moving See # 9 Page 11
HK shares creep higher HONG KONG: Hong Kong shares edged higher on Thursday, finding support at the 200-day moving average and helped by property developers and energy counters, while the Shanghai market eased as low volumes pointed to low conviction among investors. Hong Kong's Hang Seng closed up 0.7 per cent, further above a chart level that has provided strong support over the past two months. Coal counters led gains on the China Enterprises Index, which ended up 0.5 per cent. The Shanghai Composite gave up early gains to dip 0.5 per cent, although low volumes on exchanges in Hong Kong and China suggested market players were wary and preferred to remain on the sidelines. "You need a fundamental catalyst, but it's all technical plays at the moment," said Hao Hong, executive director of Global Strategy at China International Capital Corporation (CICC). "If you rush in and pick up a percentage here, you'll lose a percentage there, and with the risk you have to take, it's not worth it." In a low volume environment where equity markets in Hong Kong and China have largely moved sideways after the routs in commodities prices over the past two weeks, investors have sought out bargains as volatility in financial assets recedes.
Developers in Hong Kong were the top performing sector as continued high office rentals, reports of insiders buying and attractive valuations have drawn investors to the sector. Traders said news that billionaire Li Ka-shing had bought shares in Cheung Kong (Holdings) Ltd for the first time this year helped its stock rise 2.7 per cent. Rival Sun Hung Kai Properties Ltd rose 2 per cent. Cheung Kong trades at a 25 percent discount to its 10-year median forward 12-month earnings multiple, according to Thomson Reuters Starmine and after Thursday's gain has returned above its 200-day moving average, suggesting it could be poised for further gains. Energy counters continued to recover as commodities prices stabilised and oil prices steadied around $100 a barrel. CNOOC rose 1.5 per cent, providing the biggest boost to the benchmark. Yanzhou Coal jumped 5 percent and was the top performer on the China Enterprises Index as coal counters continued their strong run on expectations that power shortages in China would boost demand. For Yanzhou, 12 analysts have changed their estimates for annual earnings since April 22 with an average increase of 8.8 per cent, according to Thomson Reuters Starmine. On the downside, a grim profit warning from China
Wireless Technologies Ltd saw investors rush for the exits, sending it down more than 28 per cent, its biggest single-day percentage drop. SHANGHAI EASES China shares traded lower on Thursday for the first time in three sessions as investors continued to tread lightly with few catalysts on the horizon. China's top coal producer, China Shenhua Energy Co Ltd, was the biggest drag on the benchmark, losing 0.6 per cent, its first daily loss in three days as the Shanghai energy sector index lost one per cent. The benchmark Shanghai Composite Index was briefly above its 125-day moving average in early trade, before pulling back to finish 0.5 per cent down at 2,859.6 on Thursday, staying within the same narrow 30-point range for the seventh consecutive session. Traders and analysts said the pullback from earlier gains showed 2,900 would be strong resistance and is a key level to breach if the index were to break upwards. "You need the big institutional names to come in with the volumes for this upward spike to happen," said Zhang Qi, an analyst with Haitong Securities. A-share turnover on Thursday neared the new fourmonth low set on Wednesday as it barely hit RMB 91 billion, some 31 per cent below the 2011 average, currently at RMB 132.2 billion.-Reuters
two months. Most of the experts believe that the key interest rate would be kept unchanged. Federal budget would also be announced next week where there are ambiguities over taxation measures that are likely to be introduced through the budget. Therefore, local investors preferred to stay on the sidelines as evident from low volumes. About 40 million shares
exchanged hands which were 3.3 million shares more as compared to a turnover of 36.7 million shares a day earlier. Silkbank was the most traded scrip with 7.37 million shares followed by Jahangir Siddiqui & Co with 3.98 million shares and Lotte Pakistan with 2.54 million shares. Out of total 367 active issues; 131 declined and 120 advanced while 116 issues remained unchanged.
Indian shares snap 3-day fall BANGALORE: Indian shares snapped a three-day fall on Thursday and rose 0.3 per cent tracking firm global markets, but investors continued to fret over the impact of rising borrowing costs on corporate earnings. Larsen & Toubro led the gains adding 5.8 per cent after the engineering and construction conglomerate beat market estimates with a 17 per cent rise in quarterly profit, and forecast revenue to grow by a quarter in 2011/12. The 30-share BSE index ended up 0.31 per cent, or 55.20 points, at 18,141.40, a day after slipping to its lowest close in nearly two months. The gains lacked conviction and the market had at one point dropped as much as 0.2 per cent. Seventeen index components closed down. "Large investors are not participating right now. It is the smaller guys who are in the market," said Gajendra Nagpal, chief executive of Unicon Financial. Arun Kejriwal, director of research firm KRIS, said the gains were mainly due to the rise in Asia and Europe and the outlook remained subdued.
"Inflation is a big concern. We are sitting on possible price hikes in fuel, which will add to inflation. This will in turn see the central bank tinkering interest rates," he said. Those worries have seen foreign funds pulling out about $1.6 billion during May 1-16. The central bank had raised rates by a higher-than-expected 50 basis points earlier this month and warned inflation would remain around March levels in the first half of the fiscal year. Headline inflation in April was at an annual 8.66 per cent, data on Monday showed, and the prospect of rising energy costs is likely to keep pressure on the central bank to raise rates again when it reviews policy on June 16. Data released on Thursday showed the fuel price index in the week ended May 7 rose 12.11 per cent from a year earlier. State-run refiners had raised prices of petrol by 8.6 per cent on the weekend. The government also aims to raise statecontrolled prices of fuels such as diesel and cooking gas, possibly as soon as this week, according to sources. See # 8 Page 11
ANNOUNCEMENT Company Metro Steel Pangrio Sugar
Period 3rd Qtr Half Yearly
Div/Bon/Right -
PAT (Rs in mn) -62.22 -9.22
EPS(Rs) -2.00 -0.85
US stocks mid-day
Wall Street flat on data NEW YORK: US stocks barely budged on Thursday after a mixed bag of economic data kept confidence in the economic recovery on shaky ground, but LinkedIn's shares surged in their Wall Street debut. Economic data painted a cloudy picture after weekly jobless claims suggested the labor market was on track for recovery, but factory activity in the US Mid-Atlantic region grew much more slowly than expected in May. In addition, sales of previously owned US homes fell in April in a sign the housing market is still struggling. "We continue to see the rate of growth slow. That has been the prevailing trend for the last three or four weeks and the Philly Fed is adding to that pressure," said Marc Pado, US market strategist at Cantor Fitzgerald & Co in San Francisco. "With earnings season mostly behind us, it's been difficult to find or identify a catalyst that will take you to the next level, not without at least consolidating or absorbing some of the information and getting through some time." In their public trading debut, shares of LinkedIn Corp more than doubled their IPO price in a jump reminiscent of the heyday of investors' love affair with Internet stocks. The stock rocketed to an intraday high of $121.97 -- or as much as 171 per cent above its initial offering price of $45. The Dow Jones industrial average rose 0.16 per cent, to 12,586.61. The Standard & Poor's 500 Index inched up 0.46 of a point, or 0.03 per cent, to 1,341.14. The Nasdaq Composite Index was up 2.93 points, or 0.10 per cent, to 2,817.93. Semiconductor shares fell after Goldman Sachs cut its rating on Intel Corp to "sell" from "neutral," citing slowing processor shipments, rising competition and record capital expenditure levels this year. The firm also lowered its rating on Applied Materials as part of a wider downgrade on the semiconductor equipment sector. Intel shares lost 1.4 per cent to $23.55 and Applied Materials dropped 1.7 per cent to $14.26. The PHLX semiconductor index declined one per cent.-Reuters
Dhiyan
SUGGESTIONS FOR WAIT AND SEE Mohsin Adhi, Director Alfa Adhi Securities There are concerns among the investors over likely imposition of some new taxes in the budget and increase in corporate tax. Therefore, market is witnessing some dull activities which are expected to continue till budget announcement. We advised investors to remain on the sidelines until these uncertainties are not removed. Market would be lackluster today.
Muzzammil Khan, AVP BMA Capital
Market would continue to move in a limited range with low volumes in the coming days due to budget related uncertainties and strangulated Pak-US relations. It is better for the investors to stay away from the market. However, if they want to invest, they can buy fertilizer stocks. Market would remain dull today.
6
Friday, May 20, 2011
Market
KSE 100 Index
Symbols
Volume
40,083,939
Value
1,396,763,260
Trades
32,461
Advanced Declined Unchanged Total
Current High Low Change
120 131 116 367
All Share Index
11,878.81 11,925.42 11,873.69 i5.80
Current High Low Change
8,263.47 8,294.33 8,260.33 i2.60
OIL AND GAS
Company
Paid up Cap(mn)
PE
High Low 1,482.00 1,467.57 Total cos Defaulter cos 12 P/BV (x) ROE (%) 3.33 32.54
Open
High
Low
Attock Petroleum 691 6.78 373.36 Attock Refinery 853 4.02 123.14 BYCO Petroleum 3921 8.13 Mari Gas Company 735 4.14 101.67 National Refinery 800 4.50 329.05 Oil & Gas Development 43009 9.91 147.45 Pak Petroleum 11950 7.44 204.03 Pak Oilfields 2365 7.19 325.12 Pak Refinery Limited 350 46.65 83.98 P.S.O XD 1715 4.03 279.52 Shell Gas LPG 226 - 22.90 Shell Pakistan 685 7.57 212.21
375.75 123.60 8.29 102.63 331.00 147.84 205.00 327.20 84.60 283.70 23.00 213.50
374.02 122.00 8.09 101.11 325.51 146.10 203.26 325.55 83.40 281.05 22.50 212.00
Close Chg 375.05 122.47 8.10 101.31 326.04 146.48 203.44 325.89 83.51 282.11 22.92 213.00
1.69 -0.67 -0.03 -0.36 -3.01 -0.97 -0.59 0.77 -0.47 2.59 0.02 0.79
Current High Low Change
KMI 30 Index Current High Low Change
11,540.74 11,588.80 11,534.80 i7.33
20,141.39 20,219.93 20,126.69 h0.61
Last 60 days High Low
Volume 12875 172844 146056 5443 185325 543747 107246 202392 9185 427484 2517 36763
387.98 129.40 10.43 117.00 356.50 159.70 216.50 332.45 110.50 294.49 28.70 217.90
321.00 98.25 7.93 98.50 254.00 128.21 190.10 277.09 81.23 265.00 22.11 186.83
% Change -0.25 5-Day High 1,477.23 5-Day Low 1,470.64
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 -
-
CHEMICALS
Company
Paid up Cap(mn)
Agritech Limited
PE
Open
3924
-
18.94
Biafo Ind XD
200
5.54
47.30
BOC (Pak)
250
7.35
97.71
Clariant Pak
341
4.91 160.00
Open 695.77 Turnover 7,376 P/E (x) 5.03 Company
High Low 700.63 690.10 Total cos Defaulter cos 4 2 P/BV (x) ROE (%) 1.28 25.53
Close 697.92 Listed cap 3,242.17 mn Payout (%) 11.08
Change 2.14 Market cap 11,738.38 mn Div Yield (%) 2.20
Paid up Cap(mn)
PE
Open
High
Low
Close Chg
Volume
Last 60 days High Low
1092 1321
6.53 8.29
71.24 27.31
71.25 28.45
70.30 27.75
71.00 -0.24 28.28 0.97
2907 4469
76.25 33.45
Pak Int Cont.Terminal PNSC
63.00 25.18
Dawood Hercules
4813
Descon Chemical
1996
Descon Oxychem Ltd.
3.61
60.20
-
2.15
1020 11.06
7.56
Dewan Salman
3663
2.20
Engro Corporation Ltd
3933
Engro Polymer
6635
Fatima Fertilizer
22000
-
8.53 192.31 -
10.97
-
12.35
Close 1,817.09 Listed cap 52,251.88 mn Payout (%) 48.81
Change -2.10 Market cap 375,285.10 mn Div Yield (%) 5.51
Last 60 days High Low
% Change -0.12 5-Day High 1,836.53 5-Day Low 1,817.09
2010 Div BR (%) (%)
2011 Div BR (%) (%)
High
Low
Close Chg
Volume
19.75
19.75
18.94 0.00
200
-
-
49.00
49.00
48.99 1.69
681
- 49.50
-
99.80
97.10
97.60 -0.11
3548
99.80
82.00
60
-
-
-
15872
201.40
140.00
135
25B
-
-
138234
294.00
56.10
50 300B
-
-
-
-
-
-
-
-
24.55
18.51
51.97
44.40
-
-
45
62.74
60.20
62.16 1.96
2.31
2.10
2.17 0.02
1139
3.23
7.85
7.50
7.52 -0.04
144954
9.60
2.24
2.13
2.15 -0.05
418031
3.10
2.11
-
-
-
1119541 238.50
189.00
60
20B
-
-
- 27.5R
-
-
-
193.69 190.62 190.83 -1.48
2.10
-
6.00
11.14
10.70
10.77 -0.20
236189
13.95
12.40
12.31
12.35 0.00
39350
13.60
10.75
1412939 145.21
-
10.70
-
-
Fauji FertilizerSPOT
8482
8.78 142.97
108.00
130
25B 45.00
-
Fauji Fert. Bin Qasim
9341
6.24
41.51
41.80
41.60
41.68 0.17
337137
43.89
37.86
65.5
- 12.50
-
Gatron Ind
384
3.63
52.66
53.00
53.00
53.00 0.34
800
58.80
43.15
20
-
-
-
Ghani Gases Ltd
725
9.80
11.46
12.00
11.50
11.66 0.20
381824
14.49
10.43
-
-
-
-
153.50 148.02 152.05 2.81
496594
172.00
142.00
175
-
-
-
ICI Pakistan
1388
Ittehad Chemical Lotte Pakistan Nimir Ind Chemical
8.45 149.24
360
4.36
29.40
30.50
29.95
30.00 0.60
1208
30.50
20.11
5
-
5
-
15142
4.11
14.83
14.96
14.70
14.73 -0.10
2535788
17.36
14.05
5
-
-
-
1106 10.43
2.43
2.59
2.35
2.40 -0.03
146001
3.40
2.10
-
-
-
-
Sitara Chem Ind
214
2.53 102.00
Sitara Peroxide
551
5.48
17.48
92
-
16.00
United Distributors
143.74 142.30 142.73 -0.24
-
-
101.00
98.06 102.00 0.00
208
112.45
18.30
17.50
17.71 0.23
1562621
15.50
15.00
15.50 -0.50
4000
90.78
25
5B
-
-
19.99
11.81
-
-
-
-
16.40
12.07
-
-
-
-
FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,090.42 Turnover 55,081 P/E (x) 5.58
High Low 1,112.82 1,082.04 Total cos Defaulter cos 4 1 P/BV (x) ROE (%) 0.42 7.47
Close 1,094.90 Listed cap 1,186.83 mn Payout (%) 25.28
Change 4.48 Market cap 3,020.51 mn Div Yield (%) 4.53
Paid up Cap(mn)
PE
Open
High
Low
Close Chg
Volume
Century Paper
707
-
16.33
17.25
16.50
16.99 0.66
51079
17.50
13.85
Pak Paper Product Security Paper
50 411
1.77 6.90
41.00 39.88
41.40 39.75
41.25 39.00
41.40 0.40 39.00 -0.88
501 3501
44.49 39.90
35.17 34.00
Company
Last 60 days High Low
% Change 0.41 5-Day High 1,094.90 5-Day Low 1,070.40
2010 Div BR (%) (%) -
-
-
2533.33B 50 -
-
-
Open 1,133.04 Turnover 110,673 P/E (x) 3.86 Paid up Cap(mn)
Atlas Battery Atlas Honda Dewan Motors General Tyre Ghandhara Nissan Ghani Automobile Ind Honda Atlas Cars Indus Motors
101 626 1087 598 450 200 1428 786
PE
Open
5.58 209.60 9.15 147.00 1.60 4.25 22.34 2.82 6.53 3.46 9.15 7.64 220.03
Company
Paid up Cap(mn)
Crescent Steel Dost Steels Ltd Huffaz Pipe XD International Ind
PE
565 1.83 675 555 20.55 1199 8.95
Metro Steel
310
-
Open
High
Low
Close Chg
26.93 1.76 11.55 50.00
27.45 1.89 11.65 50.50
26.61 1.62 11.05 49.50
27.00 1.67 11.51 50.05
0.07 -0.09 -0.04 0.05
9.97
10.05
10.05
10.05 0.08
Close 1,004.62 Listed cap 3,596.11 mn Payout (%) 30.91
Change 0.60 Market cap 9,315.40 mn Div Yield (%) 10.91
Last 60 days High Low
Volume
% Change 0.06 5-Day High 1,020.19 5-Day Low 1,004.02
2010 Div BR (%) (%)
5380 103450 7850 10952
29.75 2.42 14.90 54.50
25.67 1.62 11.05 45.81
30 40
500
14.89
8.97
-
2011 Div BR (%) (%)
- 20.00 25B 15.00 20B 15.00 -
-
High
High Low 1,139.73 1,126.68 Total cos Defaulter cos 19 4 P/BV (x) ROE (%) 0.98 25.35 Low
Close Chg
Company
Paid up Cap(mn)
Abdullah Shah Ghazi Sugar 793 Adam Sugar 58 AL-Noor Sugar 186 Baba Farid 95 Bawany Sugar 87 Chashma Sugar 287 Crescent Sugar 214 Dewan Sugar 365 Fecto Sugar 146 Habib Sugar 750 Habib-ADM Ltd 200 Haseeb Waqas 324 J D W Sugar 539 Kohinoor Sugar 109 Mehran Sugar 157 Mirpurkhas Sugar 84 Mirza Sugar 141 National Foods 414 Pangrio Sugar 109 Premier Sugar 38 Quice Food 107 S S Oil 57 Sakrand Sugar 223 Sanghar Sugar 119 Shahmurad Sugar 211 Shahtaj Sugar 120 Tandlianwala 1177 UniLever Pakistan 665 Wazir Ali 80
Close 1,134.95 Listed cap 6,768.53 mn Payout (%) 20.42
Volume
Close 849.14 Listed cap 54,792.74 mn Payout (%) 19.04
Change 0.33 Market cap 61,783.88 mn Div Yield (%) 3.30
Paid up Cap(mn)
PE
Open
High
Low
Close Chg
Volume
Last 60 days High Low
Attock Cement
866
6.68
52.50
52.89
51.72
52.78 0.28
1203
56.70
48.50
Balochistan Glass Ltd Berger Paints Cherat Cement
858 182 956 43.62
1.96 14.75 9.30
2.29 14.78 9.25
1.94 14.40 9.16
2.00 0.04 14.48 -0.27 9.16 -0.14
3589 1426 3000
2.90 17.40 11.90
1.90 13.55 8.00
Dadabhoy Cement Dewan Cement
982 15.31 3891 -
1.99 1.45
2.15 1.47
1.90 1.44
1.99 0.00 1.46 0.01
35246 31731
2.24 2.19
DG Khan Cement Ltd Fauji Cement XR Fecto Cement
3651 28.80 6933 7.05 502 5.78
21.48 4.17 6.70
21.75 4.20 6.99
21.50 4.05 6.20
21.60 0.12 4.09 -0.08 6.70 0.00
548699 172981 102
Flying Cement Ltd
1760
-
1.34
1.34
1.30
1.31 -0.03
4003 13126 70.00 3234 5.66
6.23 2.85 69.77
6.74 2.90 70.25
6.49 2.80 69.51
6.60 0.37 2.80 -0.05 69.72 -0.05
Company
Gharibwal Cement Lafarge Pakistan Cmt. Lucky Cement
2010 Div BR (%) (%) 50
PE
2011 Div BR (%) (%) -
-
- 122R -
-
-
1.50 1.41
-
-
-
-
26.44 4.69 8.90
21.20 3.97 6.10
-
20R -
-
20R 92R -
12812
1.84
1.26
-
-
-
-
3602 183200 102507
13.50 3.45 73.69
5.00 2.10 59.55
40
-
-
-
-
-
Maple Leaf Cement
5261
-
2.02
2.09
2.03
2.07 0.05
57814
2.89
1.92
-
-
Pioneer Cement Shabbir Tiles Thatta Cement
2271 361 798
-
4.64 6.26 18.14
5.64 6.44 18.00
4.60 6.12 17.14
5.03 0.39 6.12 -0.14 17.94 -0.20
124421 2501 6995
6.40 8.50 19.19
4.50 5.13 16.20
-
50R
- 100R -
GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 956.61 Turnover 50,386 P/E (x) 2.74 Company Cherat Papersack ECOPACK Ltd Ghani Glass MACPAC Films Merit Pack Packages Ltd Siemens Engineering Tri-Pack Films
High Low 967.07 953.74 Total cos Defaulter cos 13 2 P/BV (x) ROE (%) 1.20 43.91
Close 961.07 Listed cap 3,043.31 mn Payout (%) 15.55
Change 4.46 Market cap 35,433.14 mn Div Yield (%) 5.68
Paid up Cap(mn)
PE
Open
High
Low
Close Chg
Volume
Last 60 days High Low
115
2.50
50.86
51.00
50.52
50.83 -0.03
9741
56.90
1.36 -0.10
21903
230
-
1.46
46.45
% Change 0.47 5-Day High 961.07 5-Day Low 956.09
2010 Div BR (%) (%) 20
2011 Div BR (%) (%)
25B
-
50R
-
-
1.42
1.36
2.68
1.31
-
-
1067
5.49
54.00
54.10
54.10
54.00 0.00
200
56.07
49.00
25
10B
-
-
389
2.55
12.94
13.40
11.95
12.77 -0.17
6038
15.21
3.55
-
-
-
-
47 12.83
28.00
28.89
27.15
28.62 0.62
2721
32.00
26.50
-
-
-
-
107.00 106.01 106.09 -2.68
344
124.50
103.01
32.5
-
-
-
82 19.69 975.30 1024.06 1004.50 1024.06 48.76
116
1120.00
915.00
900
-
-
-
9323
172.00
126.51
100
-
-
-
844 17.68 108.77 300
6.45 165.95
167.85 164.50 165.48 -0.47
INDUSTRIAL ENGINEERING
Company Ados Pak AL-Ghazi Tractor Ghandhara Ind Hinopak Motor KSB Pumps XD Millat Tractors Pak Engineering
Paid up Cap(mn) 66 215 213 124 132 366 57
PE
Open
2.99 8.30 4.01 230.45 9.73 8.17 - 85.63 - 38.80 8.20 531.47 - 94.00
High
High Low 1,636.22 1,590.39 Total cos Defaulter cos 11 1 P/BV (x) ROE (%) 3.05 38.02 Low
Close 1,612.06 Listed cap 1,336.62 mn Payout (%) 131.49
Close Chg
Volume
8.15 8.15 8.15 -0.15 233.70 231.00 232.07 1.62 8.48 8.17 8.17 0.00 87.00 85.00 85.64 0.01 39.99 39.11 38.80 0.00 547.70 532.49 539.63 8.16 96.80 89.56 92.83 -1.17
655 6153 786 294 200 109898 1205
16.00 239.00 10.84 128.00 62.00 547.70 144.99
7.40 199.05 8.01 85.00 37.01 478.00 89.56
-
Change 1.91 Market cap 42,143.58 mn Div Yield (%) 5.29
Last 60 days High Low 216.30 153.93 2.45 26.17 4.50 4.60 10.88 250.00
180.00 120.30 1.50 21.08 2.16 2.90 9.00 205.51
2010 Div BR (%) (%) 100 50 20 150
% Change 0.17 5-Day High 1,137.72 5-Day Low 1,132.35 2011 Div BR (%) (%)
20B 15B 65.00 - 50.00
15B -
High
Low
Close Chg 0.00 0.00 2.11 0.00 0.00 -0.72 0.08 0.01 0.00 -0.25 0.04 0.75 2.03 0.00 2.19 1.58 0.00 1.06 -0.27 0.93 0.19 0.24 0.66 0.04 -0.79 2.25 0.00 30.10 0.00
Close 2,103.48 Listed cap 11,335.33 mn Payout (%) 30.57
Volume
Change 13.03 Market cap 295,760.26 mn Div Yield (%) 0.62
2010 Div BR (%) (%)
Company
Paid up Cap(mn)
Last 60 days High Low
353 6.90 4.10 512 15.00 11.50 1000 47.50 37.65 119 60.00 46.05 172 9.25 5.25 2800 10.20 8.00 1101 8.99 6.02 11102 3.70 2.31 2552 50.00 34.16 31649 24.50 20.25 5337 13.00 10.80 500 17.00 9.25 1300 77.99 68.50 460 4.69 2.52 1733 60.49 50.12 2000 52.50 39.51 200 4.49 2.50 3247 68.89 52.01 650 5.08 3.00 1050 42.00 34.23 2000 3.90 2.25 4000 6.45 2.60 117000 3.00 1.60 3600 12.70 11.00 500 9.90 8.00 8649 68.90 59.72 266 54.49 39.00 367 5988.18 4500.00 340 7.50 5.50
Hussain Industries Pak Elektron Singer Pak XB Tariq Glass Ind
High Low 749.32 726.85 Total cos Defaulter cos 15 7 P/BV (x) ROE (%) 0.19 10.64
PE
Open
High
Low
106 1219 375 119.69 231 1.58
4.70 7.78 15.56 11.70
4.69 7.99 16.56 12.48
4.69 7.80 15.60 11.70
2010 Div BR (%) (%)
2011 Div BR (%) (%)
25 50 10 25 25B 40 10 7010B 12.5R 35 20B 7.50 15 20B 10 12 10 10 15 10 492 -
-
Close Chg 4.69 7.85 15.56 11.98
-0.01 0.07 0.00 0.28
Close 728.47 Listed cap 3,763.71 mn Payout (%) 6.27
Volume 500 3161 419 85557
Change 5.30 Market cap 4,043.48 mn Div Yield (%) 3.48
400 12.5 650 100
25B325.00 -
-
59.18
Total Assets (Rs in mn)
MA (10-day)
1.92
Total Equity (Rs in mn)
MA (100-day)
2.18
Revenue (Rs in mn)
MA (200-day)
2.59
Interest Expense
86.00
1st Support
2.20
Profit after Taxation
46.41
2nd Support
1.80
EPS 10 (Rs)
1st Resistance
3.00
Book value / share (Rs)
2nd Resistance
3.40
PE 11 E (x)
Pivot
2.60
PBV (x)
1,790.86 146.76 3,193.22
2.08 6.58 0.40
SKRS closed up 0.660 at 2.660. Volume was 1,393 per cent above average (trending) and Bollinger Bands were 10 per cent narrower than normal. The company's loss after taxation stood at Rs12.505 million which translates into a Loss Per Share of Rs0.56 for the 1st quarter of fiscal year (1QFY11). SKRS is currently 0.0 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into SKRS (bullish). Trend forecasting oscillators are currently bullish on SKRS.
D. S. Industries Limited
Fundamental Highlights As on Jun 30, 2010
Technical Analysis RSI (14-day)
50.11
Total Assets (Rs in mn)
840.05
MA (10-day)
1.10
Total Equity (Rs in mn)
(309.63)
MA (100-day)
1.46
Revenue (Rs in mn)
MA (200-day)
1.64
Interest Expense
1st Support
1.00
Loss after Taxation
(23.38)
2nd Support
0.87
EPS 10 (Rs)
(0.390)
1st Resistance
1.28
913.02 88.07
Book value / share (Rs)
2nd Resistance
1.43
PE 11 E (x)
Pivot
1.15
PBV (x)
(5.16) (0.22)
DSIL closed up 0.12 at 1.15. Volume was 397 per cent above average (trending) and Bollinger Bands were 45 per cent narrower than normal. The company's loss after taxation stood at Rs93.898 million which translates into a Loss Per Share of Rs1.55 for the nine months of fiscal year (9MFY11). DSIL is currently 30.0 per cent below its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of DSIL at a relatively equal pace. Trend forecasting oscillators are currently bullish on DSIL.
Gulshan Spinning Mills Limited
Last 60 days High Low
2010 Div BR (%) (%)
7.00 14.50 22.55 18.49
17.5
4.00 7.26 15.31 11.20
10B 10B -
% Change 0.73 5-Day High 741.66 5-Day Low 723.17 2011 Div BR (%) (%) - 200R
Company
Paid up Cap(mn)
(Colony) Thal Ali Asghar Textile Amtex Limited Artistic Denim Azam Textile Azgard Nine Bannu Woolen XD Bata (Pak) XD Chenab Limited Colgate Palm Colony Mills Ltd Crescent Textile D S Ind Ltd Dawood Lawrencepur XB Dewan Mushtaq Textile Ellcot Spinning Gul Ahmed Textile Gulistan Spinning Gulshan Spinning H M Ismail Hira Textile Mills Ltd. Ibrahim Fibres ICC Textile Idrees Textile Indus Dyeing Janana D Mal Jubilee Spinning Khalid Siraj Kohinoor Ind Kohinoor Textile Land Mark Spinning Maqbool Textile Mehmood Textile Mukhtar Textile N P Spinning Nagina Cotton Nishat (Chunian) Nishat Mills Olympia Textile Pak Leather Pak Synthetic Paramount Spinning Prosperity Ravi Textile Reliance Weaving Ruby Textile Rupali Poly Sally Textile Salman Noman Samin Textile Sapphire Fibre Sapphire Textile Saritow Spinning Service Ind XD Shahtaj Textile Suraj Cotton Tata Textile Thal Ltd Treet Corp Tri-Star Poly Yousuf Weaving
56 222 2594 840 133 4493 76 76 1150 316 2442 492 600 591 34 110 635 146 222 120 716 3105 300 180 181 48 325 107 303 2455 121 168 150 145 147 187 1620 3516 108 34 560 174 185 250 308 392 341 88 42 267 197 201 133 120 97 180 173 307 418 215 400
High Low 964.68 946.75 Total cos Defaulter cos 211 73 P/BV (x) ROE (%) 0.56 8.64
Close 955.31 Listed cap 47,070.70 mn Payout (%) 16.68
PE
Open
High
Low
Close Chg
Volume
7.14 0.47 0.77 5.40 20.39 1.89 3.58 0.22 0.59 3.19 0.37 0.44 0.80 3.24 1.65 2.81 0.40 0.33 4.72 2.00 1.01 3.53 0.61 3.67 5.10 2.40 0.64 0.95 0.55 2.90 0.27 0.70 2.44 0.99 1.12 0.34 3.00 1.34 0.71 0.47 6.63 0.58
2.05 1.03 1.93 22.56 2.59 5.66 18.38 460.56 1.83 740.00 1.88 13.42 1.03 36.00 4.19 25.00 50.01 7.00 9.61 1.50 4.01 45.41 0.70 4.30 291.03 14.80 3.01 1.20 1.18 4.24 1.50 9.80 64.05 0.27 27.00 15.25 23.72 57.63 0.31 2.00 19.21 13.00 14.64 0.98 10.79 6.80 39.00 7.02 3.39 4.61 117.88 118.00 1.61 176.06 24.00 38.10 34.43 98.00 51.05 0.80 1.30
2.18 1.05 1.99 21.75 2.60 5.79 19.28 474.98 2.20 740.00 1.93 13.99 1.30 36.97 4.00 26.20 51.75 7.11 10.61 1.50 4.15 45.49 0.80 4.96 301.00 14.50 3.98 1.20 1.24 4.69 1.11 9.26 65.00 0.35 26.00 15.00 24.00 58.00 0.50 1.50 20.21 13.00 14.40 0.95 10.71 7.50 39.19 7.00 3.10 5.00 118.50 123.90 1.75 176.25 24.00 38.90 35.80 98.00 53.50 0.65 1.61
1.80 0.86 1.85 21.75 2.45 5.52 18.16 442.02 1.75 721.00 1.81 12.70 1.02 34.50 3.93 25.00 50.06 7.00 10.00 1.50 3.96 44.81 0.80 4.09 289.95 13.80 3.98 1.20 1.01 4.10 1.11 9.25 64.90 0.30 26.00 15.00 23.80 57.40 0.35 1.50 18.36 12.00 14.25 0.53 10.70 7.50 38.51 7.00 3.10 4.70 118.00 121.00 1.74 174.60 24.00 37.00 32.71 97.50 50.61 0.53 1.29
2.03 -0.02 0.86 -0.17 1.98 0.05 22.56 0.00 2.60 0.01 5.56 -0.10 18.55 0.17 459.03 -1.53 1.85 0.02 725.00-15.00 1.81 -0.07 13.32 -0.10 1.15 0.12 35.75 -0.25 4.31 0.12 25.00 0.00 50.40 0.39 7.00 0.00 10.60 0.99 1.50 0.00 4.00 -0.01 45.45 0.04 0.70 0.00 4.30 0.00 294.76 3.73 13.89 -0.91 3.98 0.97 1.20 0.00 1.17 -0.01 4.11 -0.13 1.11 -0.39 9.26 -0.54 64.94 0.89 0.30 0.03 26.00 -1.00 15.00 -0.25 23.88 0.16 57.51 -0.12 0.50 0.19 2.00 0.00 19.22 0.01 12.96 -0.04 14.64 0.00 0.94 -0.04 10.70 -0.09 6.80 0.00 38.51 -0.49 7.00 -0.02 3.39 0.00 5.00 0.39 118.00 0.12 123.89 5.89 1.74 0.13 175.68 -0.38 24.00 0.00 37.00 -1.10 34.43 0.00 97.99 -0.01 53.05 2.00 0.54 -0.26 1.31 0.01
10400 3003 63690 101 3006 1618736 37247 130 1003 475 2002 630 480260 1749 2900 202 708 12177 108588 500 87183 25001 115 2028 601 3613 1000 500 7922 3425 879 1000 500 3023 500 500 70508 232305 3395 198 4308 1501 439 6187 712 500 27802 4800 110 501 2505 467 1400 7146 1000 10003 346 15578 95616 8000 503
Change -0.26 Market cap 123,838.95 mn Div Yield (%) 2.58
Last 60 days High Low 2.84 1.45 3.40 23.13 2.98 9.85 23.27 603.00 3.40 900.00 2.85 17.88 1.85 49.05 5.40 28.74 53.65 9.23 11.68 2.10 5.20 50.74 2.00 6.00 327.80 17.80 3.98 1.79 1.90 5.58 1.50 10.00 65.00 0.77 28.35 17.95 29.50 66.75 1.98 3.45 21.21 15.49 16.90 1.74 14.00 0.00 44.40 9.35 4.75 7.40 121.44 123.90 2.33 215.44 26.29 42.00 44.10 117.40 53.51 1.49 1.88
2010 Div BR (%) (%)
% Change -0.03 5-Day High 958.00 5-Day Low 955.03 2011 Div BR (%) (%)
0.50 0.61 1.81 - 30B 18.55 20 2.00 7.5 4.40 13.00 20 411.00 280 1.65 647.01 135 15B 1.50 12.61 15 0.95 34.50 5 15B 3.02 24.01 35 33.00 12.5 5.52 10 7.00 10 20B 0.42 3.50 10 43.02 20 0.63 3.05 10 251.00 50 - 50.00 13.50 2.01 0.71 1.01 3.60 1.10 7.50 22.5 54.99 60 0.20 23.75 20 14.54 20SD 22.30 15 56.80 25 45R 0.30 1.01 12.50 10.20 10 10B 13.60 30 0.40 9.25 25SD 0.00 37.56 40 4.00 10 1.90 5B 4.10 - 100R 102.87 15 103.55 50 1.22 154.00 75 19.15 45 35.77 50 32.71 25 97.00 80 20B 44.10 50 900B 0.23 1.08 -
-
Performance of SR Pharma and Bio Tech Index Open 963.52 Turnover 23,025 P/E (x) 6.80 Company
Paid up Cap(mn)
Abbott (Lab) XD 979 Ferozsons (Lab) 250 GlaxoSmithKline 1963 Highnoon (Lab)XDXB 182 Otsuka Pak 100 Sanofi-Aventis 96
PE
Open
5.62 91.26 7.56 93.00 10.47 74.65 5.97 26.04 10.54 32.49 - 143.31
High
High Low 975.59 950.19 Total cos Defaulter cos 9 P/BV (x) ROE (%) 1.52 22.31 Low
Close Chg
92.01 90.55 91.78 91.45 91.20 91.38 76.50 72.77 73.28 26.50 25.75 25.81 31.18 30.88 30.88 148.95 144.50 146.39
0.52 -1.62 -1.37 -0.23 -1.61 3.08
Close 956.34 Listed cap 3,904.20 mn Payout (%) 44.54
Volume 613 370 9751 9389 1528 1356
54.54
Total Assets (Rs in mn)
MA (10-day)
10.21
Total Equity (Rs in mn)
MA (100-day)
9.09
Revenue (Rs in mn)
MA (200-day)
8.16
Interest Expense
459.22
Profit after Taxation
101.80
1st Support
10.19 9.79
1st Resistance
Performance of SR Personal Goods Index Open 955.56 Turnover 2,981,325 P/E (x) 6.46
Fundamental Highlights As on Jun 30, 2010
Technical Analysis RSI (14-day)
2nd Support
PERSONAL GOODS
% Change 1.35 5-Day High 1,612.06 5-Day Low 1,558.29 2011 Div BR (%) (%)
Fundamental Highlights As on Sep 30, 2010
Technical Analysis RSI (14-day)
% Change 0.62 5-Day High 2,103.48 5-Day Low 2,090.45
PHARMA AND BIO TECH
Change 21.49 Market cap 32,644.36 mn Div Yield (%) 16.39
Last 60 days High Low
Open
Open 723.17 Turnover 89,659 P/E (x) 1.80
Performance of SR Industrial Engineering Index Open 1,590.57 Turnover 119,193 P/E (x) 8.02
-
HOUSEHOLD GOODS
-
-
2011 Div BR (%) (%)
Performance of SR Household Goods Index
-
% Change 0.04 5-Day High 865.26 5-Day Low 847.88
2425 2780 80007 3950 3003 2002 9259 7130
High Low 2,116.03 2,077.89 Total cos Defaulter cos 61 16 P/BV (x) ROE (%) 15.02 30.30
0.98 5.90 6.90 5.00 5.90 3.87 13.00 13.00 12.80 13.00 1.15 43.69 45.80 45.79 45.80 - 48.45 46.05 46.05 48.45 7.97 7.80 7.60 7.97 3.23 9.00 9.00 8.00 8.28 0.79 7.77 7.85 7.85 7.85 2.50 2.75 2.40 2.51 - 38.00 38.45 38.00 38.00 4.18 23.75 23.70 23.30 23.50 4.92 12.16 12.20 12.12 12.20 - 10.50 11.25 11.25 11.25 1.35 74.00 76.50 74.55 76.03 0.63 3.40 2.90 2.90 3.40 1.86 55.00 57.69 55.78 57.19 2.71 41.81 43.39 43.39 43.39 3.00 3.00 2.82 3.00 11.23 63.99 65.90 64.90 65.05 3.77 3.51 3.48 3.50 - 40.00 40.95 38.13 40.93 6.14 2.51 2.75 2.55 2.70 0.32 4.26 4.50 4.50 4.50 2.00 3.00 2.20 2.66 2.24 12.15 12.25 11.60 12.19 2.88 9.20 8.41 8.41 8.41 4.57 65.90 68.90 65.80 68.15 28.94 51.80 53.00 51.00 51.80 19.29 5184.60 5240.00 5170.00 5214.70 7.00 7.00 6.95 7.00
CONSTRUCTION AND MATERIALS High Low 860.18 842.99 Total cos Defaulter cos 37 6 P/BV (x) ROE (%) 0.41 7.10
211.00 210.00 210.00 0.40 148.00 146.50 146.62 -0.38 1.78 1.53 1.55 -0.05 22.80 22.30 22.31 -0.03 3.00 2.70 2.80 -0.02 3.50 3.20 3.46 0.00 9.25 9.15 9.15 0.00 221.10 220.00 221.06 1.03
Open 2,090.45 Turnover 204,716 P/E (x) 49.57
Performance of SR Construction and Materials Index Open 848.81 Turnover 1,292,033 P/E (x) 5.77
-
Performance of SR Food Producers Index
Performance of SR Industrial Metals and Mining Index High Low 1,016.71 992.68 Total cos Defaulter cos 7 1 P/BV (x) ROE (%) 0.94 33.10
40 15
FOOD PRODUCERS
INDUSTRIAL METALS AND MINING Open 1,004.02 Turnover 128,132 P/E (x) 2.83
2010 Div BR (%) (%)
Performance of SR Automobile and Parts Index
2011 Div BR (%) (%)
-
% Change 0.31 5-Day High 697.92 5-Day Low 681.84
AUTOMOBILE AND PARTS
Company
High Low 1,835.06 1,809.34 Total cos Defaulter cos 36 6 P/BV (x) ROE (%) 3.10 35.00
163.00 159.00 161.00 1.00
Sakrand Sugar Mills Limited
Performance of SR Industrial Transportation Index
Close Change 1,470.64 -3.69 Listed cap Market cap 65,194.15 mn 1,089,675.30 mn Payout (%) Div Yield (%) 55.94 5.46
Performance of SR Chemicals Index Open 1,819.19 Turnover 8,956,392 P/E (x) 8.86
Alert ! Unusual Movements
INDUSTRIAL TRANSPORTATION
Performance of SR Oil and Gas Index Open 1,474.32 Turnover 1,705,821 P/E (x) 10.25
KSE 30 Index
Change -7.18 Market cap 31,052.36 mn Div Yield (%) 6.55
Last 60 days High Low 94.00 99.49 90.00 33.50 33.89 168.00
78.59 85.00 68.00 24.50 29.50 134.00
2010 Div BR (%) (%) 50 40 25 100
% Change -0.75 5-Day High 974.01 5-Day Low 956.34 2011 Div BR (%) (%)
20B 12.50 15B 10B 15 -
-
10.80
4,530.16 844.38 3,757.22
EPS 10 (Rs)
5.496
Book value / share (Rs)
45.59
2nd Resistance
11.01
PE 11 E (x)
0.57
Pivot
10.40
PBV (x)
0.23
GSPM closed up 0.99 at 10.60. Volume was 471 per cent above average (trending) and Bollinger Bands were 22 per cent narrower than normal. The company's profit after taxation stood at Rs205.572 million which translates into an Earning Per Share of Rs14.04 for the nine months of fiscal year (9MFY11). GSPM is currently 30.8 per cent above its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into GSPM (mildly bullish). Trend forecasting oscillators are currently bearish on GSPM.
Pioneer Cement Limited
Fundamental Highlights As on Jun 30, 2010
Technical Analysis RSI (14-day)
46.41
Total Assets (Rs in mn)
10,325.49
MA (10-day)
4.78
Total Equity (Rs in mn)
2,218.22
MA (100-day)
6.04
Revenue (Rs in mn)
3,872.83
MA (200-day)
6.79
Interest Expense
1st Support
4.56
Loss after Taxation
2nd Support
4.06
EPS 10 (Rs)
1st Resistance
5.60
Book value / share (Rs)
2nd Resistance
6.14
PE 11 E (x)
Pivot
5.10
PBV (x)
392.66 (590.93) (2.653) 9.96 0.51
PIOC closed up 0.39 at 5.03. Volume was 249 per cent above average (trending) and Bollinger Bands were 50 per cent wider than normal. The company's loss after taxation stood at Rs196.945 million which translates into a Loss Per Share of Rs0.85 for the nine months of fiscal year (9MFY11). PIOC is currently 25.9 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of PIOC at a relatively equal pace. Trend forecasting oscillators are currently bearish on PIOC.
BOOK CLOSURES Company
From
To
Husein Sugar Mills Fauji Cement Shifa Int Hospitals J.K Spinning Mills (TFC) Telecard Shams Textile Mills # Gharibwal Cement # Fauji Fertiliser JS Value Fund JS Growth Fund Shakarganj Mills # Pakistan Telephone Cables Haydari Construction # Fazal Cloth Mills # Nimir Ind Chemicals Thatta Cement Sapphire Fibres Sapphire Textile Mills Habib ADM # Cherat Papersacek # Husein Sugar Mills # MCB Bank Shaheen Insurance # Ittehad Chemicals #
20-May 20-May 20-May 20-May 21-May 21-May 22-May 23-May 24-May 24-May 24-May 25-May 26-May 27-May 27-May 28-May 28-May 28-May 29-May 30-May 31-May 02-Jun 03-Jun 04-Jun
26-May 26-May 26-May 25-May 27-May 28-May 30-May 29-May 30-May 30-May 31-May 30-May 02-Jun 02-Jun 02-Jun 03-Jun 03-Jun 03-Jun 04-Jun 06-Jun 06-Jun 09-Jun 10-Jun 10-Jun
D/B/R 40.49(R) 92(R) 15(Ii) 10(I) 45(I) 5(I) 7.5(I) 25(R) 30(I) -
Spot AGM/Date 12-May 12-May 12-May 12-May 13-May 16-May 16-May 25-May -
28-May 30-May 31-May 30-May 02-Jun 30-May 04-Jun 06-Jun 06-Jun 10-Jun 10-Jun
INDICATIONS # Extraordinary General Meeting
OTHER SECTORS Symbols TRG Pakistan Ltd. Murree Brewery Co. Grays of Cambridge Pak Tobacco Co. Media Times LtdXR P.I.A.C.(A) Pace (Pak) Ltd. Netsol Technologies
Open 2.56 107.01 32.83 95.61 13.01 2.34 2.79 20.52
High 2.67 109.8 33.9 99 13.94 2.35 2.83 20.79
Low Close 2.52 106.75 32 91 12.02 2.29 2.69 20.32
2.53 107.5 32.34 93.7 13.94 2.29 2.72 20.51
Change -0.03 0.49 -0.49 -1.91 0.93 -0.05 -0.07 -0.01
Vol 138414 14738 764 32558 700 10242 437795 99055
7
Friday, May 20, 2011
FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 962.39 Turnover 1,420,428 P/E (x) 5.33 Paid up Cap(mn)
Company
High Low 981.30 963.73 Total cos Defaulter cos 5 P/BV (x) ROE (%) 0.68 12.84
PE
Open
High
Low
Close Chg
Pakistan Telecomm Co A 37740 13.80 Telecard 3000 2.78 WorldCall Tele 8606 Wateen Telecom Ltd 6175 -
16.63 1.70 2.13 2.53
16.93 1.78 2.20 2.69
16.71 1.63 2.07 2.50
16.83 0.20 1.64 -0.06 2.08 -0.05 2.54 0.01
Close 970.43 Listed cap 50,077.79 mn Payout (%) 62.56
Volume 959064 304204 157160 57105
Change 8.04 Market cap 67,605.94 mn Div Yield (%) 11.73
% Change 0.84 5-Day High 971.16 5-Day Low 962.39
Last 60 days High Low
2010 Div BR (%) (%)
18.90 2.35 2.89 3.50
17.5 1 -
16.05 1.40 1.94 2.41
2011 Div BR (%) (%)
-
-
Atlas Insurance 443 3.36 Central Insurance 391 1.48 Century Insurance 457 4.63 EFU General Insurance 1250 12.16 Habib Insurance 450 7.92 IGI Insurance XD 970 5.84 New Jub InsuranceXDXB 989 10.10 Pak Reinsurance XD 3000 5.64 Pak Gen Insurance XB 275 31.32 PICIC Ins Ltd 350 8.16 Premier Insurance XD 303 3.63
26.50 68.00 8.34 32.33 11.67 70.51 55.63 15.24 5.10 8.80 8.20
Paid up Cap(mn)
PE
Open
High
Low
Genertech 198 Hub Power 11572 Japan Power 1560 KESC 7932 Kohinoor Power 126 Kot Addu Power 8803 Nishat Chunian Power Ltd 3673 Nishat Power Ltd 3541 Southern Electric 1367 Tri-star Power XD 150
7.42 2.13 5.47 2.89 2.33 -
0.61 36.98 1.24 2.27 3.05 42.80 16.06 16.45 1.27 0.98
0.61 36.96 1.29 2.39 3.00 42.80 16.25 16.64 1.39 1.08
0.60 36.85 1.16 2.30 2.71 42.45 16.00 16.27 1.22 0.91
Company
Close 1,333.25 Listed cap 95,369.29 mn Payout (%) 104.13
Change -0.21 Market cap 103,938.49 mn Div Yield (%) 7.78
Close Chg
Volume
Last 60 days High Low
0.60 36.95 1.25 2.33 2.75 42.60 16.07 16.33 1.34 0.95
12113 244668 136558 99777 20604 231272 240563 348408 16036 4711
0.85 40.75 1.70 2.89 4.95 44.99 17.00 17.75 1.98 1.37
-0.01 -0.03 0.01 0.06 -0.30 -0.20 0.01 -0.12 0.07 -0.03
0.49 35.90 0.97 2.25 2.11 40.26 14.05 14.85 1.13 0.31
% Change -0.02 5-Day High 1,337.92 5-Day Low 1,330.29
2010 Div BR (%) (%) 50 50 -
2011 Div BR (%) (%)
- 25.00 7.8R - 30.00 - 10.00 -
-
GAS WATER AND MULTIUTILITIES Performance of SR Gas Water and Multiutilities Index Open 1,270.66 Turnover 281,681 P/E (x) 8.26 Paid up Cap(mn)
Company Sui North Gas Sui South Gas
High Low 1,280.82 1,262.08 Total cos Defaulter cos 2 P/BV (x) ROE (%) 0.94 11.41
Close 1,268.15 Listed cap 12,202.80 mn Payout (%) 66.79
Change -2.51 Market cap 28,284.89 mn Div Yield (%) 8.08
PE
Open
High
Low
Close Chg
Volume
Last 60 days High Low
5491 13.08 8390 4.91
18.31 21.81
18.49 21.95
18.15 21.70
18.31 0.00 21.73 -0.08
18554 263127
22.20 26.15
17.64 20.52
% Change -0.20 5-Day High 1,305.86 5-Day Low 1,268.15
2010 Div BR (%) (%) 20 15
2011 Div BR (%) (%)
25B
-
-
BANKS Performance of SR Banks Index Open 1,134.98 Turnover 11,498,974 P/E (x) 7.32 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 8362 Meezan Bank XB 8030 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
6.06 61.03 5.14 11.40 5.46 10.40 6.01 28.49 2.56 5.74 5.12 10.30 3.91 7.03 9.50 7.33 117.48 4.91 17.13 46.60 2.43 1.41 8.33 205.06 5.99 17.50 2.08 4.02 51.15 2.28 1.61 24.13 1.93 18.44 2.90 3.05 6.10 6.81 8.22 2.82 7.52 63.64
High Low Close 1,143.69 1,129.74 1,136.85 Total cos Defaulter cos Listed cap 27 - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.02 13.94 40.49
High
Low
Close Chg
61.50 61.00 61.49 0.46 11.50 11.25 11.31 -0.09 10.48 10.25 10.38 -0.02 28.72 28.35 28.37 -0.12 5.75 5.55 5.73 -0.01 5.17 5.00 5.02 -0.10 3.89 3.80 3.81 -0.10 9.70 9.25 9.28 -0.22 118.01 117.20 117.35 -0.13 17.10 17.00 17.08 -0.05 2.49 2.29 2.33 -0.10 1.45 1.40 1.45 0.04 206.40 204.70 206.06 1.00 17.50 17.50 17.50 0.00 2.20 2.10 2.10 0.02 51.60 51.10 51.19 0.04 2.70 2.30 2.44 0.16 1.65 1.52 1.55 -0.06 1.96 1.90 1.93 0.00 3.00 2.93 2.95 0.05 6.20 6.03 6.10 0.00 8.50 8.15 8.44 0.22 2.95 2.71 2.73 -0.09 64.00 63.50 63.96 0.32
Volume
Change 1.87 Market cap 672,171.57 mn Div Yield (%) 5.53
Last 60 days High Low
4730 70.00 120661 14.90 296809 11.20 71203 36.95 14680 6.25 794643 7.60 11010 4.18 204150 14.44 30085 131.00 18685 25.00 199904 3.16 35391 1.69 312800 230.80 16381 19.70 16867 2.90 469386 81.78 87715 3.49 1281468 2.70 25562 2.20 7367002 3.00 13513 6.99 7391 9.90 98704 3.58 98938 67.25
57.00 10.90 8.75 26.95 3.30 4.51 3.18 9.00 104.16 17.00 2.06 1.16 192.20 16.26 1.70 49.57 0.76 1.52 1.50 2.02 5.00 6.28 2.36 56.70
% Change 0.17 5-Day High 1,141.95 5-Day Low 1,132.06
2010 Div BR (%) (%)
2011 Div BR (%) (%)
40 10B - 10B 20 20B - 20B 65 10B - 20B - 33R -105.16R 115 10B 30.00 - 15B 75 25B -154.79R -63.46R - 311R 6 50 -
20R -
NON LIFE INSURANCE Open 720.40 Turnover 1,568,535 P/E (x) 10.28 Paid up Cap(mn)
Company
Adamjee Insurance XD
1237
PE 6.96
Open 66.07
High Low 734.08 711.40 Total cos Defaulter cos 34 22 P/BV (x) ROE (%) 0.53 5.20
High 66.00
Low 64.55
Close Chg 64.88 -1.19
Close 726.76 Listed cap 11,111.34 mn Payout (%) 79.54
Volume 169912
Last 60 days High Low 83.40
62.00
% Change 0.88 5-Day High 730.41 5-Day Low 720.40
2010 Div BR (%) (%) 25
2011 Div BR (%) (%)
-
-
-
1589 42.90 434 115.90 433 10.85 11349 38.90 1763 16.05 8012 103.00 7196 74.90 1352855 20.80 1875 10.00 3898 13.00 9218 13.27
High Low 822.82 794.30 Total cos Defaulter cos 4 P/BV (x) ROE (%) 3.03 3.85
Paid up Cap(mn)
PE
Open
High
Low
Close Chg
500
9.38
1.70
1.90
1.50
1.50 -0.20
EFU Life Assurance New Jub Life Insurance
850 8.16 627 13.94
58.54 52.15
58.80 52.50
57.35 49.60
58.09 -0.45 51.87 -0.28
26.00 65.00 8.00 29.01 11.00 65.10 51.16 12.43 5.05 7.08 8.00
40 20B 25 50B 10 12.5 25 12.5B 30 55B 10.00 20 25B 30 - 10B 25 -
-
Close 811.87 Listed cap 2,290.72 mn Payout (%) 355.53
Change -6.10 Market cap 9,071.59 mn Div Yield (%) 4.52
Last 60 days High Low
Volume 601 13587 20217
% Change -0.75 5-Day High 817.98 5-Day Low 802.27
2010 Div BR (%) (%)
2011 Div BR (%) (%)
2.60
1.50
-
10R
-
-
64.50 54.00
50.70 42.01
50 15
-
-
-
FINANCIAL SERVICES Performance of SR Financial Services Index Open 284.90 Turnover 6,032,003 P/E (x) 11.54 Paid up Cap(mn)
Company
High Low 294.24 273.51 Total cos Defaulter cos 41 6 P/BV (x) ROE (%) 0.18 0.91
PE
Open
High
Low
Close Chg
0.94 5.61
0.48 22.40
0.64 22.59
0.42 21.45
0.45 -0.03 22.00 -0.40
AMZ Ventures Arif Habib Investments
225 360
Arif Habib Limited
450 15.42
Close 280.47 Listed cap 30,336.44 mn Payout (%) 99.56
Change -4.43 Market cap 13,555.50 mn Div Yield (%) 4.92
Last 60 days High Low
Volume 63106 2451
0.93 24.97
% Change -1.56 5-Day High 292.23 5-Day Low 280.47
2010 Div BR (%) (%)
0.34 20.40
-
20B
2011 Div BR (%) (%) -
-
14.90
14.98
14.35
14.65 -0.25
12865
22.80
12.01
-
20B
-
-
2.84 2.38
20.82 1.37
21.35 1.74
20.90 1.31
21.23 0.41 1.50 0.13
663843 545
26.14 2.04
18.75 1.10
30 -
-
-
-
250 441
-
1.39 2.00
1.42 2.19
1.22 2.00
1.24 -0.15 2.00 0.00
2100 11873
2.57 3.00
1.06 1.60
-
-
-
-
First Credit & Invest Bank Ltd 650
-
4.90
4.90
4.50
4.90 0.00
17392
6.00
2.30
-
-
-
-
2121 9.21 600 21.59
1.70 7.71
1.84 8.00
1.70 7.91
1.75 0.05 7.99 0.28
727 3000
2.46 9.29
1.61 5.15
11.5
-
-
-
Arif Habib Corp 3750 Dawood Cap Mangt. XB 150 Dawood Equities Escorts Bank IGI Investment Bank Invest and Fin Sec Invest Bank Ist Cap Securities Ist Dawood Bank
2849 3166 626
0.67
0.35 2.73 1.50
0.40 2.85 1.50
0.22 2.70 1.50
0.33 -0.02 2.70 -0.03 1.50 0.00
11458 1103 1500
1.20 3.67 2.00
0.22 2.45 1.24
-
10B -
-
-
Jah Siddiq Co JOV and CO
7633 508
-
7.15 2.63
7.31 2.79
6.76 2.65
6.94 -0.21 2.67 0.04
3976012 88883
10.05 3.98
4.82 2.31
10 -
-
-
-
JS Global Cap JS Investment KASB Securities
500 5.73 1000 43.58 1000 -
19.95 5.33 3.30
20.75 5.48 3.70
18.96 5.20 3.22
19.95 0.00 5.23 -0.10 3.30 0.00
418 21364 303
27.00 6.43 4.97
16.42 4.53 3.10
50 -
-
-
-
5.28 1.56 3.00 1.30
5.49 1.99 2.75 1.45
5.26 1.52 2.75 1.26
6.40 2.49 5.90 2.00
5.00 1.21 1.11 0.61
-
-
-
-
Orix Leasing Pervez Ahmed Sec Trust Brokerage Trust Inv Bank
821 775 100 586
3.20 6.00 0.34
5.28 1.68 2.75 1.38
0.00 0.12 -0.25 0.08
2508 1830303 500 891
EQUITY INVESTMENT INSTRUMENTS Performance of SR Equity Investment Instruments Index Open 1,486.40 Turnover 354,530 P/E (x) 19.01 Paid up Cap(mn)
Company 1st Fid Leasing
PE
Open
High
High Low 1,516.50 1,483.12 Total cos Defaulter cos 52 11 P/BV (x) ROE (%) 0.42 2.21 Low
Close Chg
Close 1,489.69 Listed cap 29,771.58 mn Payout (%) 104.74
Change 3.30 Market cap 19,097.49 mn Div Yield (%) 8.56
Last 60 days High Low
Volume
% Change 0.22 5-Day High 1,499.43 5-Day Low 1,482.79
2010 Div BR (%) (%)
2011 Div BR (%) (%)
264
-
1.40
2.00
1.25
1.25 -0.15
14361
2.35
1.15
-
-
-
-
AL-Meezan Mutual F.
1375
4.49
10.47
10.50
10.42
10.47 0.00
13501
11.20
8.95
18.5
-
5.00
-
B R R Guardian Mod.
780
2.09
1.96
2.15
2.00
2.01 0.05
18940
2.91
1.12
0
-
-
-
Constellation Modaraba
65
3.13
1.10
1.60
1.25
1.47 0.37
2502
1.99
0.90
-
-
-
-
1.22
-
Golden Arrow
760
2.11
3.25
3.21
3.19
3.19 -0.06
37812
3.95
2.92
17
-
-
-
H B L Modaraba
Equity Modaraba
397
524
3.64
7.33
7.42
7.10
7.42 0.09
1273
8.48
6.81
11
-
-
-
7.37
1.60
3.94
1.22
6.99
21
2.46
7.11
7.19
7.05
7.15 0.04
26744
7.45
4.76
12.5
-
-
-
0.63
5.90
6.00
5.80
6.00 0.10
47807
6.68
4.20
10
-
5.00
-
1.25
1.29
1.06
1.25 0.00
118
1.84
1.00
-
-
-
-
-
-
59
5.46
8.05
18
-
-
-
1000
2.09
7.10
7.23
7.10
7.10 0.00
12601
8.50
6.92
10
- 10.00
-
2835
2.65
12.75
12.95
12.82
12.92 0.17
6600
13.86
12.00
20
- 12.50
-
PICIC Inv Fund
-
10.00
9.99
10.00 0.00
600
10.48
0.45
3
-
PICIC Growth Fund
10.00
1.25
-
PICIC Energy Fund
Paramount Modaraba
1004
-
-
184 17.86
0.73 0.13
8.44
-
1186
0.73
4520
-
1008
1.00
7.60 0.10
2.50
3180
0.60
7.32
14265
Habib Modaraba
-
7.60
1.40 -0.20
JS Growth FundSPOT
125
7.50
1.90
JS Value FundSPOT Pak Modaraba
Change 6.37 Market cap 45,270.85 mn Div Yield (%) 7.74
0.49 0.00 0.00 0.26 -0.27 -0.01 1.86 1.00 0.85 0.99 -0.07
East West Life
Company
Mod Al-Mali
Performance of SR Non Life Insurance Index
26.99 68.00 8.34 32.59 11.40 70.50 57.49 16.24 5.95 9.79 8.13
LIFE INSURANCE Open 817.98 Turnover 34,405 P/E (x) 5.26
Performance of SR Electricity Index High Low 1,338.13 1,328.31 Total cos Defaulter cos 15 1 P/BV (x) ROE (%) 1.25 9.35
26.55 68.00 8.01 32.10 11.40 70.00 55.00 15.06 5.95 9.30 8.00
Performance of SR Life Insurance Index
-
ELECTRICITY Open 1,333.46 Turnover 1,354,711 P/E (x) 13.38
27.00 70.00 8.50 33.00 11.41 70.99 57.99 16.24 6.10 9.80 8.20
-
2841
2.21
5.67
5.90
5.60
5.60 -0.07
105251
6.56
5.10
10
-
7.50
Prud Modaraba 1st
872
1.75
0.88
0.99
0.89
0.96 0.08
42839
1.10
0.80
3
-
-
Punjab Modaraba
340
-
0.68
0.95
0.78
0.68 0.00
201
1.99
0.50
1
-
-
Tri-Star 1st Modaraba
212 32.00
0.90
0.66
0.62
0.64 -0.26
1387
2.20
0.20
-
-
-
-
Tri-Star Mutual U D L Modaraba
-
50
0.48
1.10
1.29
0.72
0.72 -0.38
1001
1.93
0.71
-
-
-
-
264
2.23
6.41
6.50
6.40
6.50 0.09
1002
7.25
5.67
12.5
-
7.50
-
UPTO 100 VOLUME Symbols
Open
CSM EMCO PTEC PSMC SCLL GAMON SNAI FRSM DFSM CPMFI MBF HUSS SHEZ RMPL EXIDE AASM PSEL ATFF KOHC NESTLE DYNO SHFA CWSM STML AKDCL BCML SEARL WYETH IDSM MWMP SMCPL AGIL FNEL JKSM MUBT AABS CLOV CPAL IBLHL PCAL TICL SGML BCL CJPL FRCL HAJT KML MTIL OLSM SALT ZTL AACIL BHAT CLCPS DREL FDMF FTHM FZTM HADC ISIL KOHE PGCL PRET
0.58 1.60 3.01 67.83 2.52 1.50 37.43 18.25 2.91 2.50 9.25 9.94 152.56 2705.45 197.99 23.92 142.50 6.55 6.27 3501.66 10.94 32.01 1.49 20.00 38.00 15.25 59.00 853.00 6.98 1.00 5.48 72.24 2.41 6.05 0.55 97.90 64.21 1.58 9.51 49.52 57.82 6.40 49.75 0.61 3.50 0.62 1.51 0.37 1.70 50.97 3.25 2.52 249.00 1.42 575.00 1.92 107.35 300.00 0.40 82.13 16.75 17.99 25.84
High 0.58 1.70 3.30 68.99 2.89 1.50 38.05 17.50 3.75 2.25 9.83 10.50 152.00 2600.00 199.50 25.11 135.38 6.40 6.35 3589.00 10.10 33.45 1.45 20.00 38.99 16.25 58.85 863.99 7.00 1.14 5.20 71.05 2.60 7.05 1.20 97.50 64.59 1.12 10.00 51.40 57.00 6.39 48.49 0.95 3.00 0.45 2.04 0.40 0.90 53.45 3.50 2.65 250.00 0.46 603.00 2.19 101.99 314.90 0.49 78.03 16.75 18.00 24.85
Low
Close
0.58 1.70 3.03 66.52 2.50 1.50 38.01 17.50 3.00 2.25 9.83 10.49 150.01 2570.18 199.40 25.11 135.38 6.40 6.35 3481.00 10.10 33.00 1.06 20.00 38.15 15.00 58.80 863.97 6.01 0.18 5.20 71.05 1.60 5.05 1.20 97.50 64.59 1.06 9.52 51.40 56.90 5.83 47.45 0.61 2.50 0.25 1.00 0.40 0.71 53.45 2.50 2.65 250.00 0.46 603.00 2.19 101.99 314.90 0.49 78.03 16.75 18.00 24.85
0.58 1.60 3.01 67.83 2.52 1.50 37.43 18.25 2.91 2.50 9.25 9.94 152.56 2577.64 197.99 23.92 142.50 6.55 6.27 3540.88 10.94 32.01 1.49 20.00 38.00 15.25 59.00 853.00 6.98 1.00 5.48 72.24 2.41 6.05 0.55 97.90 64.21 1.58 9.51 49.52 57.00 6.40 49.75 0.61 3.50 0.62 1.51 0.37 1.70 50.97 3.25 2.52 249.00 1.42 575.00 1.92 107.35 300.00 0.40 82.13 16.75 17.99 25.84
Change
Vol
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -127.81 0.00 0.00 0.00 0.00 0.00 39.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.82 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
100 100 99 86 83 80 80 64 51 40 40 34 32 26 25 22 22 20 20 17 15 15 14 10 7 7 7 7 6 6 6 5 5 5 5 4 4 4 4 4 4 3 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1
FUTURE CONTRACTS Symbols
Open
ENGRO-MAY 192.94
High 194.00
Low
Close
191.10
191.44
Change -1.50
Vol 287000
DGKC-MAY
21.48
21.65
21.50
21.57
0.09
148500
NBP-MAY
51.31
51.80
51.21
51.32
0.01
142500 76000
NML-MAY
57.85
58.00
57.62
57.69
-0.16
FFC-MAYB
138.40
139.10
138.10
138.32
-0.08
72000
POL-MAY
325.63
326.70
325.66
326.05
0.42
52500
ATRL-MAY
123.59
123.65
122.68
122.88
-0.71
51500 45000
PTC-MAY
16.68
16.90
16.85
16.85
0.17
PPL-MAY
204.68
205.40
203.65
203.88
-0.80
42500
MCB-MAY
205.66
206.50
205.15
206.41
0.75
26000
LUCK-MAY
70.00
70.25
69.90
70.00
0.00
16000
PMTFC6 FFBL-MAY NSB3Y1
93.85
0.24
10000
41.64
41.85
41.80
41.80
0.16
9500
100.81
93.60
100.00
94.00
100.00
94.00
100.81
0.00
200
MTS LEVERAGE POSITION Symbol AHCL AICL AKBL ANL ATRL BAFL DGKC ENGRO FFBL FFC HUBC KAPCO LOTPTA LUCK MCB NBP NCL NML OGDC PAKRI POL PPL PSO PTC UBL TOTAL
Total Volume 668,576 550 50,649 194,200 39,300 1,022,447 471,290 73,162 80,251 5,500 40,000 5,000 3,362,540 25,154 52,271 593,898 400,000 130,636 27,000 54,000 500 40,600 81,725 26,500 9,125 7,454,874
Total Value 10,485,287 26,798 427,583 803,176 3,629,636 7,994,290 7,637,532 10,569,477 2,507,533 586,209 1,112,569 161,487 37,739,989 1,318,298 7,998,970 22,593,771 7,145,424 5,665,105 2,991,678 624,937 122,221 6,215,737 17,030,524 333,510 425,813 156,147,555
MTS Rate 19 17 19 16 18 17 15 15 16 15 16 17 17 18 15 16 18 15.91
BOARD MEETINGS
Fauji Fertiliser Co
KSE 100 INDEX
Pakistan Telecommunication Co Ltd
Engro Corporation
Company
Date
Time
Sindh Abadgar Sugar Ltd Fateh Ind Ltd Mitchell Fruit Farms Ltd Mirza Sugar Mills Ltd Sakrand Sugar Mills Ltd Adam Sugar Mills Ltd Faran Sugar Mills Ltd Emco Ind Ltd Shell Gas LPG (Pak) Al- Abbas Sugar Mills Ltd Fecto Sugar Mills Ltd Mirpurkhas Sugar Mills Mari Gas Company Ltd
20-May 23-May 23-May 23-May 23-May 24-May 24-May 25-May 25-May 25-May 25-May 26-May 01-Jun
4:00 10:00 2:00 10:30 4:00 12:00 3:30 11:00 11:00 2:00 11:00 3:30 10:00
TECHNICAL LEVELS Company
Technical Outlook Technical Analysis RSI (14-day)
Brokerage House
Leverage Position
48.82
Support 1
11,859.85
MA (5-day)
11,912.63
Support 2
11,840.90
MA (10-day)
11,938.63
Resistance 1
11,911.60
MA (100-day)
11,988.67
Resistance 2
11,944.35
Target Price
Recommendations
144
Hold
Arif Habib Ltd
Arif Habib Ltd AKD Securities Ltd
120.7
Reduce
AKD Securities Ltd
TFD Research
129.4
Neutral
TFD Research
Technical Outlook Technical Analysis
Leverage Position
RSI (14-day) 60.75 MTS Shares `000 5.50 MA (200-day) 11,252.09 Pivot 11,892.65 MA (10-day) 141.62 MTS Rs `000 586.21 137.96 MTS Rate KSE 100 INDEX closed down -5.80 points at 11,878.81. Volume was MA (100-day) MA (200-day) 123.64 ** NOI Rs (mn) 25.75 69 per cent below average (consolidating) and Bollinger Bands were Free Float Shares (mn) 466.49 Free Float Rs (mn) 66,581.74 60 per cent narrower than normal. As far as resistance level is conTarget price for Dec-11 & **Net Open Interest in future market cern, the market will see major 1st resistance level at 11,911.60 and FFC closed down -0.24 at 142.73. Volume was 38 per cent below 2nd resistance level at 11,944.35, while Index will continue to find its average and Bollinger Bands were 78 per cent narrower than normal. 1st support level at 11,859.85 and 2nd support level at 11,840.90. KSE 100 INDEX is currently 5.6 per cent above its 200-day moving FFC is currently 15.4 per cent above its 200-day moving average average and is displaying a downward trend. Volatility is extremely and is displaying a downward trend. Volatility is extremely low when low when compared to the average volatility over the last 10 trading compared to the average volatility over the last 10 trading sessions. sessions. Volume indicators reflect volume flowing into and out of Volume indicators reflect volume flowing into and out of FFC at a relINDEX at a relatively equal pace. Trend forecasting oscillators are atively equal pace. Trend forecasting oscillators are currently bearcurrently bearish on INDEX. ish on FFC.
Dera Ghazi Khan Cement Co Ltd
Brokerage House
Target Price
Recommendations
Brokerage House
Buy
Arif Habib Ltd
28.72
Accumulate
AKD Securities Ltd
TFD Research
36.45
Positive
TFD Research
30.1
Technical Analysis
Leverage Position
31.65 MTS Shares `000 471.29 22.24 MTS Rs `000 7,637.53 25.90 MTS Rate 17.28 26.40 ** NOI Rs (mn) 154.59 Free Float Shares (mn) 200.80 Free Float Rs (mn) 4,337.38 Target price for Dec-11 & **Net Open Interest in future market
Recommendations
143.2
Sell
145 145.25
Technical Analysis
Recommendations
224
Buy
Arif Habib Ltd
195.41
Neutral
AKD Securities Ltd
245.4
Positive
TFD Research
MTS Shares `000 MTS Rs `000 MTS Rate ** NOI Rs (mn) Free Float Rs (mn)
Buy
23.91
Buy Positive
Target price for Dec-11 & **Net Open Interest in future market
Technical Analysis
Leverage Position
RSI (14-day) MA (10-day) MA (100-day) MA (200-day)
47.74 MTS Shares `000 26.50 16.90 MTS Rs `000 333.51 17.89 MTS Rate 18.00 18.45 ** NOI Rs (mn) 12.61 Free Float Shares (mn) 585.02 Free Float Rs (mn) 9,845.95 Target price for Dec-11 & **Net Open Interest in future market
solidating) and Bollinger Bands were 63 per cent narrower than normal.
ENGRO is currently 1.2 per cent below its 200-day moving average and is PTC is currently 8.8 per cent below its 200-day moving average and is disdisplaying a downward trend. Volatility is extremely low when compared to playing an upward trend. Volatility is extremely low when compared to the the average volatility over the last 10 trading sessions. Volume indicators average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of ENGRO at a relatively equal pace. reflect moderate flows of volume into PTC (mildly bullish). Trend forecastTrend forecasting oscillators are currently bearish on ENGRO.
ing oscillators are currently bullish on PTC.
Pakistan State Oil Co Ltd
National Bank of Pakistan
Brokerage House
Brokerage House
Target Price
Target Price
Recommendations
65
Buy
Arif Habib Ltd
Accumulate
AKD Securities Ltd
301.82
Positive
TFD Research
362.05
Arif Habib Ltd AKD Securities Ltd
60.4
TFD Research
92.3
55.10 MTS Shares `000 27.00 147.61 MTS Rs `000 2,991.68 154.22 MTS Rate 16.75 153.18 ** NOI Rs (mn) N/A Free Float Shares (mn) 630.61 Free Float Rs (mn) 92,371.17 Target price for Dec-11 & **Net Open Interest in future market
73.162 10,569.48 15.25 161.61 33,772.69
(consolidating) and Bollinger Bands were 68 per cent narrower than normal.
Neutral
RSI (14-day) MA (10-day) MA (100-day) MA (200-day)
24.7
ENGRO closed down -1.48 at 190.83. Volume was 51 per cent below average PTC closed up 0.20 at 16.83. Volume was 53 per cent below average (con-
Accumulate
Leverage Position
Recommendations
Technical Outlook
Leverage Position
37.15 195.36 206.40 193.16 Free Float Shares (mn) 176.98
Target Price
25.8
Technical Outlook Technical Analysis
Technical Outlook
Technical Outlook RSI (14-day) MA (10-day) MA (100-day) MA (200-day)
Target Price
Brokerage House
Target Price
RSI (14-day) MA (10-day) MA (100-day) MA (200-day)
Oil & Gas Development Co Ltd
AKD Securities Ltd
Arif Habib Ltd
Brokerage House
Technical Analysis
Leverage Position
33.99 MTS Shares `000 593.898 51.82 MTS Rs `000 22,593.77 66.96 MTS Rate 16.28 66.68 ** NOI Rs (mn) 92.34 Free Float Shares (mn) 398.12 Free Float Rs (mn) 20,379.88 Target price for Dec-11 & **Net Open Interest in future market
Buy Accumulate Positive
Technical Outlook
Technical Outlook RSI (14-day) MA (10-day) MA (100-day) MA (200-day)
Recommendations
381.5
Technical Analysis
Leverage Position
RSI (14-day) MA (10-day) MA (100-day) MA (200-day)
59.24 MTS Shares `000 81.725 279.42 MTS Rs `000 17,030.52 283.13 MTS Rate 15.99 277.08 ** NOI Rs (mn) N/A 77.49 Free Float Rs (mn) 21,861.82 Target price for Dec-11 & **Net Open Interest in future market
Free Float Shares (mn)
DGKC closed up 0.12 at 21.60. Volume was 79 per cent below average OGDC closed down -0.97 at 146.48. Volume was 43 per cent below aver- NBP closed up 0.04 at 51.19. Volume was 84 per cent below average (con- PSO closed up 2.59 at 282.11. Volume was 33 per cent below average and (consolidating) and Bollinger Bands were 2 per cent narrower than normal. age and Bollinger Bands were 21 per cent narrower than normal.
solidating) and Bollinger Bands were 67 per cent narrower than normal.
Bollinger Bands were 40 per cent narrower than normal.
DGKC is currently 18.2 per cent below its 200-day moving average and is OGDC is currently 4.4 per cent below its 200-day moving average and is NBP is currently 23.2 per cent below its 200-day moving average and is PSO is currently 1.8 per cent above its 200-day moving average and is disdisplaying a downward trend. Volatility is relatively normal as compared to displaying an upward trend. Volatility is extremely low when compared to displaying an upward trend. Volatility is relatively normal as compared to playing an upward trend. Volatility is relatively normal as compared to the the average volatility over the last 10 trading sessions. Volume indicators the average volatility over the last 10 trading sessions. Volume indicators the average volatility over the last 10 trading sessions. Volume indicators average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of DGKC at a relatively equal pace. reflect moderate flows of volume into OGDC (mildly bullish). Trend fore- reflect volume flowing into and out of NBP at a relatively equal pace. Trend reflect moderate flows of volume into PSO (mildly bullish). Trend forecastTrend forecasting oscillators are currently bearish on DGKC.
casting oscillators are currently bullish on OGDC.
forecasting oscillators are currently bullish on NBP.
ing oscillators are currently bullish on PSO.
Allied Bank Limited Attock Cement Arif Habib Corp Arif Habib Limited Adamjee Insurance Askari Bank Azgard Nine Attock Petroleum Attock Refinery Bank Al-Falah BankIslami Pak Bank.Of.Punjab Dewan Cement D.G.K.Cement Dewan Salman Dost Steels Ltd EFU General Insurance EFU Life Assurance Engro Corp Faysal Bank Fauji Cement Fauji Fert Bin Fauji Fertilizer Habib Bank Ltd Hub Power ICI Pakistan Indus Motors J.O.V.and CO Japan Power JS Bank Ltd Jah Siddiq Co Kot Addu Power K.E.S.C Lotte Pakistan Lucky Cement MCB Bank Ltd Maple Leaf Cement National Bank Nishat (Chunian) Netsol Technologies NIB Bank Nimir Ind.Chemical Nishat Mills Oil & Gas Dev. XD PACE (Pakistan) Ltd. Pervez Ahmed Sec P.I.A.C.(A) Pioneer Cement Pak Oilfields Pak Petroleum Pak Suzuki P.S.O. XD P.T.C.L.A Shell Pakistan Sui North Gas Sitara Peroxide Sui South Gas Telecard TRG Pakistan United Bank Ltd WorldCall Tele
RSI 1st 2nd (14-day) Support 50.03 61.15 60.85 49.18 52.05 51.30 39.01 20.95 20.70 39.87 14.35 14.05 37.09 64.30 63.70 36.05 11.20 11.10 40.08 5.45 5.35 52.97 374.15 373.20 44.84 121.80 121.10 50.53 10.25 10.15 49.00 3.80 3.75 34.96 4.95 4.90 38.05 1.40 1.35 31.66 21.50 21.35 30.85 2.10 2.05 33.32 1.55 1.45 47.66 32.10 31.65 54.94 57.35 56.65 37.17 189.75 188.65 30.24 9.10 8.95 45.51 4.00 3.95 51.72 41.60 41.50 60.76 142.10 141.50 39.78 117.05 116.70 44.08 36.90 36.80 43.24 148.90 145.70 50.83 220.35 219.60 45.08 2.60 2.55 55.48 1.15 1.10 39.00 2.25 2.15 44.21 6.70 6.45 48.21 42.45 42.25 40.35 2.30 2.25 34.37 14.65 14.55 47.81 69.40 69.10 52.86 205.05 204.00 40.70 2.00 1.95 34.00 51.00 50.80 31.59 23.80 23.70 31.29 20.30 20.05 25.70 1.50 1.45 37.18 2.30 2.20 31.76 57.30 57.05 55.10 145.80 145.05 40.33 2.65 2.60 51.70 1.45 1.25 37.01 2.25 2.20 46.41 4.55 4.05 51.55 325.20 324.55 39.36 202.80 202.15 46.01 66.55 65.30 59.22 280.90 279.65 47.74 16.70 16.60 59.33 212.15 211.35 43.06 18.15 18.00 49.26 17.40 17.05 42.71 21.65 21.55 49.14 1.60 1.55 41.96 2.45 2.40 54.15 63.65 63.30 39.36 2.05 2.00
1st
2nd
Resistance 61.65 61.85 53.20 53.65 21.40 21.60 14.95 15.30 65.75 66.60 11.45 11.60 5.70 5.90 375.85 376.65 123.40 124.30 10.50 10.60 3.90 3.95 5.10 5.25 1.50 1.55 21.75 21.85 2.20 2.30 1.85 2.00 33.00 33.45 58.80 59.55 192.80 194.80 9.55 9.85 4.15 4.25 41.80 41.90 143.55 144.35 117.85 118.35 37.00 37.05 154.35 156.65 221.45 221.80 2.75 2.85 1.30 1.35 2.45 2.55 7.25 7.55 42.80 42.95 2.40 2.45 14.90 15.05 70.15 70.55 206.75 207.40 2.10 2.15 51.50 51.80 24.00 24.10 20.75 21.00 1.60 1.70 2.55 2.70 57.90 58.25 147.50 148.55 2.80 2.90 1.95 2.20 2.35 2.40 5.60 6.15 326.85 327.85 204.55 205.65 69.05 70.25 283.55 284.95 16.95 17.05 213.65 214.35 18.50 18.65 18.20 18.65 21.90 22.05 1.75 1.85 2.60 2.70 64.15 64.30 2.15 2.25
Pivot 61.35 52.45 21.15 14.65 65.15 11.35 5.60 374.95 122.70 10.35 3.85 5.05 1.45 21.60 2.15 1.75 32.55 58.10 191.70 9.40 4.10 41.70 142.90 117.50 36.90 151.20 220.70 2.70 1.25 2.35 7.00 42.60 2.35 14.80 69.85 205.70 2.05 51.30 23.90 20.55 1.55 2.45 57.65 146.80 2.75 1.75 2.30 5.10 326.20 203.90 67.80 282.30 16.80 212.85 18.30 17.85 21.80 1.70 2.55 63.80 2.10
8
Friday, May 20, 2011
HSBC says losing money in China, India retail banking
Central Bank of Oman approves Bank Nizwa
Lloyds set to sell 600 branches HONG KONG: HSBC Group Chairman Douglas Flint (L) and Group CEO and Asia-Pacific Chairman Stuart Gulliver attend a news conference in Hong Kong. Reuers
PTCL connects BoP to its MPLS network ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) and Bank of Punjab (BoP) have finally inked an agreement to cater for their entire branches connectivity through state of art IP MPLS (Multi Protocol label Switching) service over physically and geographically redundant network. According to press release issued here, this will help the BoP for their multi-application connectivity in secure, reliable and cost-effective manner. The agreement will allow Bank of Punjab to carry out its
online core banking transactions in a secure, faster and cost effective manner. The MPLS service provided to Bank of Punjab is fully flexible to meet the ever-increasing demand of bandwidth due to multiple applications securing over the same network. MPLS can also provide the different Classes of Service (CoS) as per customer's requirement such as voice, video and data traffic. SEVP commercial; Naveed Saeed on the occasion stated "PTCL has become the obvious choice for customers look-
ing for quality services and with this trust building step of BOP, PTCL enhances its market share in corporate services to the next step and is keen to bring Bank of Punjab on board with PTCL for the products that have been introduced by PTCL keeping in view requirements of Financial Sector including Data Center services. With the finalization of this contract, PTCL corporate services will keep on expanding its clientele and winning the trust of major corporate customers". EVP Corporate Services and Product Development
Niaz Malik stated "This agreement with The Bank of Punjab is a radical milestone achieved by PTCL in expanding its horizons and works as an engine of economic growth for the country by not only exploring new ventures in the arena of information technology but also extending its network and services to newer areas. Thus cater perfection in all fields of life as it is constantly improving and upgrading its services to ensure customer satisfaction and has the fastest growing network in the country".-Online
TMBL offers cash facility to Asasah
EXIM Bank to finance Khi-Gwadar motorway
presence of Yaseen Anwar, Deputy Governor, State Bank of Pakistan. Speaking about the benefits of branchless banking, the Deputy Governor said: "The use of mobile financial services such as easypaisa by microfinance institutions will allow them to serve their clients in a cost-effective and transparent manner. State Bank of Pakistan is pleased to see branchless banking solutions being used to strengthen the microfinance industry." In his comments, Nadeem Hussain, President & CEO Tameer Microfinance Bank Limited said: "As part of Tameer's strategy to offer mobile financial services, we are excited to be able to offer a solution to Asasah that we
BEIJING: The EXIM Bank of China Thursday expressed its readiness to finance KarachiFaisalabad-Gwadar Motorway and will soon send a team of experts to Pakistan for a feasibility study of the proposed project. The assurance came during a meeting between Chairman EXIM Bank Li Ruogu and Prime Minister Syed Yusuf Raza Gilani here. Gilani said the financing of Karachi-Faisalabad-Gwadar Motorway project by EXIM Bank will be another shining example of the deep rooted Pak-China friendship and cooperation. The Prime Minister appreciated the financial contribution of the EXIM Bank in major communication, energy and other projects in Pakistan like the Karakorum Highway, Chashma Nuclear Power Project and Saindak Copper and Gold mines. -APP
TFD Report KARACHI: Tameer Microfinance Bank Limited (TMBL) will offer NGO and microfinance institution Asasah cash management and service delivery facilities for loan disbursements and repayments. Asasah clients will be able to receive disbursed loans at any of Tameer's network of 100 branch banking outlets, as well as at any 1Link ATM in the country, and repay the loans via easypaisa's branchless banking solution. A formal agreement to this effect was signed at Tameer's head office here between Nadeem Hussain, President & CEO Tameer Microfinance Bank Limited and Tabinda Jaferry, CEO Asasah in the
hope will go a long way in introducing to other organizations the benefits of using easypaisa, a service being offered jointly by Tameer and Telenor Pakistan. Microfinancing through mobile financial services has seen great success in other parts of the world and we are keen to replicate this in Pakistan too." Tabinda Jaferry, CEO Asasah in her remarks said: "Because of Tameer's services our clients, who are all women and whom we seek to empower, will benefit by being able to obtain a loan easily, and to repay it conveniently through easypaisa, saving them both time and money such as that spent on unnecessary travel."
Citi hires Leung to boost China investment banking team
TOKYO: A man walks past logos of Mizuho Financial Group outside the Mizuho Bank headquarters in Tokyo . Reuters
BEIJING: Citigroup Inc has hired Kenneth Leung as managing director in the China investment banking team, its second senior hire for the China team in the past two months, according to an internal memo seen by Reuters. Based in Hong Kong, Leung would focus on the property sector and joined Citi from KWG Property Holding Ltd , having previously worked with Credit Suisse Group AG and Merrill Lynch, the memo added. -Reuters
LONDON: Lloyds Banking Group expects to identify a buyer for 600 branches up for sale by the end of the year and said it is proceeding with a strategic review at "full speed." Lloyds Chairman Win Bischoff said the sale of the 600 branches demanded by European regulators would continue, even though an influential panel assessing UK banks said in April that Lloyds should sell hundreds more branches to boost competition. Lloyds had said this could delay or complicate its sale programme. "The bank is proceeding with 'Project Verde' (branches sale) with full speed and we hope to identify a potential purchaser by end 2011," Bischoff said. Bischoff was speaking at the start of Lloyds' annual shareholder meeting on Wednesday, where he and the bank's new CEO faced a grilling on the bank's huge bill for mis-selling insurance policies, as well as executive pay and their plans to revive the part-nationalised bank. "Bonuses for directors and the PPI mis-selling are a real cause for some anger," said private shareholder Raymond Robertson, who said that he also had complaints over excessive charges for overdraft facilities. Lloyds, 41 percent stateowned, took a shock 3.2 billion pound charge earlier this month to cover compensation for people mis-sold payment protection insurance (PPI) products. Taking the charge was "sensible, prudent and the right thing to do" and was in the best interests of the longterm stability of the company, Bischoff said. That provision and the bank's exposure to Ireland's economic woes pushed it to a
first-quarter loss of 3.5 billion pounds -- prompting profit downgrades and highlighting the scale of the task facing new chief executive Antonio Horta-Osorio. Horta-Osorio has been working his way through his strategy review and will deliver it in June. A potential 10 million pound pay deal for HortaOsorio has angered some shareholders. The Association of British Insurers (ABI) issued a socalled "amber top" alert to highlight a lucrative signingon deal for Horta-Osorio, while others have been critical that not all of his longterm targets have been set, and will depend on his strategic plan. That review will be key to the bank, and could mark the start of positive news for a company hit by short-term problems, said Arturo de Frias, bank analyst at Evolution Securities. "Lloyds is a unique restructuring story in a banks sector completely devoid of top line growth," he said, suggesting it could deliver 20 percent return on equity after cutting costs, selling businesses and other changes. A Reuters poll last month showed most analysts and investors expected HortaOsorio to try to sell its Scottish Widows and St James's Place units to bolster the balance sheet. Britain's government plans to sell its stakes in Lloyds and Royal Bank of Scotland back to the private sector eventually, although authorities have said any sale was unlikely until publication of a final report from the Independent Commission on Banking in September, meaning disposals may not occur until 2012. -Reuters
Emaarâ&#x20AC;&#x2122;s profit seen hit by Dubai Bank write-off DUBAI: Emaar Properties said it will write off its investment in Dubai Bank, valued at about 172 million dirhams ($46.8 million), a move expected to further erode the company's profits in the short-term, analysts said. The decision comes after the Dubai government announced that it would take over the troubled Islamic lender, thereby completely diluting the holdings of Dubai Bank's current shareholders. "We view this clean-up act as positive although pressuring the second-quarter bottom line and share price performance in the near term," said a note from CAPM Investment. Emaar, UAE's largest developer by market value, held a 30 percent minority stake in Dubai Bank, which is about 0.3 percent of Emaar's total assets and about 0.56 percent of its total equity. Dubai Bank is wholly-owned by Dubai Banking Group which itself is 70 perc entowned by Dubai Holding. "The value of this investment will be written off during second quarter of 2011," Emaar said in the statement. The builder of the world's
tallest tower had a rough start to the year with a 45 percent slump in its first-quarter results, as revenue from its apartment sales declined by over 80 percent. "In the wider scheme of things, it may not be that significant....but it will affect the second quarter results," said Chet Riley, Nomura property analyst. The move will however, ensure that the developer returns to its core business, as it had very little control in the indebted bank's operations, he said. "It also means that going forward, as a shareholder, it would not have to inject any capital into the bank. This will be taken positively," said Riley. The developer is in the process of conducting a strategic review of its foreign operations, which may lead to a greater focus on its hospitality and retail resort business, sources told Reuters. Emaar declined to comment. Dubai, which is struggling to emerge from a debt crisis, said it will inject an unspecified amount of capital into the bank and its takeover would protect depositors' interests. Reuters
Fraud of billions in NBP Branch detected KARACHI: National Bank of Pakistan has instructed special auditors to look into the accounts of those branches of Karachi which are authorized to collect motor vehicle fees, after a corruption case of billion rupees came onto surface in the Civic Center branch. The regional chief has suspended five staffers of the bank including Operation Manager Haseeb, Collection Officer Kamran, Joint Custodian Masood, Head Cashier Hashim and Aftab Lakhu. The investigation of corruption scam has also been stared by NBP's Central Anti Forgery Unit. The information regarding investigation and record checking by special auditors has made hustle and bustle in 10 to 12 branches in Karachi which are collecting motor vehicle tax as some clues of fraud were also found in these branches. The sources told Online that some officials of bank as well as a retired employee of excise office, Baighu were also involved in embezzlement of motor vehicle fees. Baighu conveys the money collected on account of motor vehicle fee himself to National Bank Civic Center Branch where Operation Manager Haseeb and Manager Inayat Ullah Ansari use to receive the money in the evening after closing of bank. The son of Baighu who was not even employee of National Bank was working in the branch on important seat of revenue collection. The sources said that if the record of all branches might be checked thoroughly, the corruption of almost RS7 billion might be revealed.-Online
SBP invites applications for PDs KARACHI: The State Bank of Pakistan (SBP) has invited applications from interested financial institutions for appointment as Primary Dealers (PDs) of Government Securities for Financial Year 2011-12. Applications must reach the Domestic Markets & Monetary Management Department (DMMD), State Bank of Pakistan latest by June 07, 2011. The applicants have also been requested to furnish to DMMD with their applications the latest annual report and the summary of month-wise Secondary Market Transactions in Pakistan Investment Bonds (PIBs) and Market Treasury Bills (MTBs) from July 1, 2010 to June 04, 2011 as per format attached with DMMD Circular No 06 dated May 16, 2011. -Online
SBP to issue Rs20 commemorative coin from 21st KARACHI: The State Bank of Pakistan (SBP) would start issuing Rs20 Commemorative Coin through the exchange counters of all the field offices of SBP Banking Services Corporation from May 21st. According to a press release issued here on Thursday, this is in line with the Federal Government's decision to issue the coin to commemorate the 60th anniversary of establishment of diplomatic relations between Pakistan and China as well as to celebrate the "2011 Year of Pak China Friendship". NNI
9
Friday, May 20, 2011
Oil steady, US jobless claims signal slow recovery
European vegetable oil prices
IEA calls oil producers to protect economy in unusual move
ROTTERDAM: The following were the Thursday's Rotterdam vegetable oil price's at 21:00 PST. SOYOIL: EU degummed euro tonne fob exmill May11 918.00+18.00, Jun11 918.00+16.00, Jul11 918.00+16.00, Aug11/Oct11 926.00+18.00, Nov11/Jan12 931.00+18.00, Feb12/Apr12 936.00. RAPEOIL: Dutch/EU euro tonne fob exmill Aug11/Oct11 1000.00+5.00, Nov11/Jan12 1005.00+5.00, Feb12/Apr12 1000.00+5.00, May12/Jul12 1000.00. SUNOIL: EU dlrs tonne extank six ports option Aug11/Sep11 1415.00+10.00, Oct11/Dec11 1355.00+0.00, Jan12/Mar12 1375.00+0.00. LINOIL: Any origin dlrs tonne extank Rotterdam May11/Jun11 1050.00+0.00. CRUDE PALM OIL: Sumatra/Malaysia slrs option dlrs tonne cif R'dam May11/Jun11 1160.00+5.00, Jul11/Sep11 1152.50+2.50, Oct11/Dec11 1142.50+2.50. PALMOIL: RBD dlrs tonne cif Rotterdam Jun11 1270.00+15.00, July11 1240.00+30.00, Aug11/Sep11 1217.50. PALMOIL: RBD dlrs tonne fob Malaysia Jun11 1215.00+15.00, July11 1185.00, Aug11/Sep11 1162.50+7.50. PALM OLEIN: RBD dlrs tonne fob Malaysia Jun11 1225.00+15.00, July11 1195.00+32.50, Aug11/Sept11 1170.00+7.50, Oct11/Dec11 1142.50+12.50, Jan12/Mar12 1137.50+10.00. COCONUT OIL: Phil/Indon dlrs tonne cif Rotterdam Apr11/May11 2350.00+0.00, May11/Jun11 2260.00+10.00, Jun11/Jul11 2160.00-40.00. CASTOROIL: Any origin dlrs tonne extank Rotterdam Jul11/Aug11 2650.00+0.00. Reuters
LONDON: Oil prices were steady on Thursday after US weekly jobless claims fell by more than expected, but a rise in the four-week average to a six-month high indicated the labor market recovery will remain slow. Oil prices have undergone a severe correction in the past two weeks, and prices are likely to remain volatile on concerns about economic recovery in the United States and unresolved sovereign debt issues in the euro-zone. By 1357 GMT, ICE Brent for July delivery was up 60 cents at $112.90 a barrel after rising more than $2 the previous day. Front-month Brent prices are down around 10 per cent from the start of May. US crude for June delivery rose 15 cents $100.25 a barrel. New US claims for unemployment benefits fell 29,000 to a seasonally adjusted 409,000, the Labor Department said, continuing to unwind the prior weeks' spike. Concerns that the high oil prices would dent the fragile
economic recovery remained high on the agenda, with the Paris-based IEA issuing a warning urging producers to take action to protect the economy and welcomed commitments to raise output in a statement ahead of the OPEC meeting on June 8. Analysts said it was an unusual move for the energy advising International Energy
Agency watchdog, which typically does not comment on oil producers' policies. "The governing board urges action from producers that will help avoid the negative global economic consequences, which a further sharp market tightening could cause, and welcomes commitments to increase supply," the IEA said in a statement, warning prices remained at high levels despite a near 10 per cent correction since the start of the month. "It is quite rare that the IEA
goes out directly to give suggestions to OPEC," said Christin Tuxen, Danske Markets. "It suggests the IEA is worried that we haven't seen OPEC increasing supply". On Wednesday, oil prices were supported from US data showing an unexpected 1.6 million barrel drop in crude inventories at the delivery point for NYMEX contracts of Cushing, Oklahoma. The support could prove short-lived, analyst said, in the absence of any major catalysts Oil prices are expected to remain volatile as weak economic data from the US and the debt crisis in the euro-zone fuel concerns about demand as prices remain above $110 a barrel. The euro-zone troubles remained in focus as the IMF warned Greece on Wednesday that it would fail to shore up the country's finances unless it redoubled reform efforts, with euro-zone officials dismissing suggestions that a mild debt restructuring might help. -Reuters
Tokyo rubber settles up ALLAHABAD - INDIA: Farmers sell watermelons on a hot summer afternoon in Allahabad. -Agencies
NY cotton jumps as supplies tighten, no Texas rain NEW YORK: US cotton futures finished Wednesday with strong gains as traders feared the cotton being readied for prompt delivery would leave stocks depleted for the July contract once it expires, analysts said. "Today, was saw a continuation of what we've seen since last week. That is, Allenberg continues to decertificate all of the cotton that they have gotten in the May delivery, well over 200,000 bales and are still decertificating," said Mike Stevens, independent cotton analyst in Mandeville,
Louisiana. "That is causing anxiety, because the perception is that it will very likely cause a delivery squeeze in the July contract," the analyst added. Key July cotton contracts on ICE Futures US jumped 4.82 cents to finish at $1.5986 per lb, a 3 per cent rise. It traded in a higher range from $1.5530 to $1.6080, a level last seen on April 26. New-crop December cotton futures gained 1.85 cents, or 1.5 per cent, to end at $1.2298 per lb, after spanning levels between $1.2075 to $1.2350 a
lb. Volume climbed to around 20,000 lots, but remained below the 30-day norm, Thomson Reuters data showed. July prices have gone up faster than December in the last week, widening their spread. Spread business aside, traders said, December cotton remains well bid with no rain in sight to quench the Texas drought. At the other extreme, flooding by the Mississippi River may jeopardize planting in Louisiana, Georgia, and elsewhere along the river. Reuters
Gold eases as dollar edges higher LONDON: Gold fell on Thursday as the euro edged up against the dollar and oil prices firmed, but prices were still set for a daily decline as investors took their cue from currency markets. Spot gold was bid at $1,492.09 an ounce at 1433 GMT, against $1,496.30 late in New York on Wednesday. US gold futures for June delivery fell $4.2 to $1,491.50. The dollar fell against the euro and trimmed gains against the yen after a key index of regional business activity unexpectedly hit a seven-month low in May, and after data showed another fall in US existing home sales. But the overall strength of the US currency has undermined gold and other commodities this month. "There is probably some consolidation around where we are, perhaps to test $1,500. I think the dollar will continue to play an important role," said RBS analyst Daniel Major.
"We've had some very choppy price action today but we have seen a small turnaround in what has been a strengthening trend in the dollar that we've seen throughout May." Interest in gold investment products like bullion-backed exchange-traded funds remained soft, with holdings of the world's
largest, New York's SPDR Gold Trust, declining by nearly 30,000 ounces on Wednesday. The World Gold Council said in a report on Thursday that investors turned away from gold-backed exchange-traded funds in the first quarter in favour of coins and bars. Gold coin and bar investment rose in most geographical areas in the first quarter, the WGC data showed, more than doubling in China to 90.9 tonnes, rising 54 per cent in the United States to 22.5 tonnes and almost
doubling in Europe to 78.1 tonnes. "It is very interesting that we continue to see a high level of enthusiasm from European investors," said the WGC's Research Manager Eily Ong. "We still see a very slow global economic recovery, and ongoing sovereign debt issue in the euro area." Holdings of the largest silver ETF, the iShares Silver Trust , also declined by 1.316 million ounces, the fund said on Wednesday. Its holdings rose strongly throughout last year, but silver's recent more than 30 per cent price dive has been accompanied by outflows. The other more industrial precious metals picked up in line with a rise in the oil price and as base metals pared some of the day's earlier losses. Silver was last up 0.9 per cent at $35.31 an ounce, while platinum was up 0.2 per cent at $1,767.00 an ounce and palladium up 0.7 per cent at $733.72. -Reuters
TOKYO: Key Tokyo rubber futures settled up 0.9 per cent in thin trade on Thursday, losing momentum as oil prices weakened, after rising as much as 2.8 per cent earlier on gains in commodities and the dollar's rise against the yen. The key Tokyo Commodity Exchange rubber contract for October delivery settled up 3.3 yen at 381.4 yen ($4.664) per kg. The benchmark contract rose as high as 388.7 yen before profit-taking emerged. The most active Shanghai rubber contract for September delivery closed up 260 yuan, or 0.8 per cent, at 31,580 yuan ($4,853.85) per tonne. Volume stood at 1,317,480 lots. "The market lacked direction, with no market-moving factors in sight except Bridgestone's bullish earnings forecast last week," said Kazuhiko Saito, chief commodities analyst at trading company Fujitomi Co. Bridgestone Corp , the world's biggest tyre maker, last week boosted its earnings outlook for the year to December, after reporting that it swung to the black in the first nine months of this year on brisk tyre sales in overseas markets. -Reuters
Copper down after US data, trading cautious LONDON: Copper fell on Thursday following a round of weak data suggesting US economic recovery could be stalling, a day after the base metal's biggest gain in two months. Three-month copper on the London Metal Exchange ended at $8,950 a tonne from a close of $9,061 a tonne on Wednesday. The metal used in power and construction rose more than $260, or some 3 per cent on Wednesday, its biggest rise since March 17, as part of a commodity-wide rebound. "It's a little bit disappointing there hasn't been much followthrough (from Wednesday's rally)," Standard Chartered analyst Daniel Smith said. Copper accelerated its fall after US data showed the number of Americans filing new claims for jobless benefits fell last week, but other numbers on home sales and regional factory activity suggested the economy remained on a moderate growth path. The metal hit a session low of $8,918 a tonne in late afternoon London trading. Copper has risen around 6 per cent since falling to five-month lows last week, but patchy US data, a debt crisis in the eurozone and persistent concerns about global economic growth mean commodities will remain under pressure. "We had a strong bounce yesterday, which means it's going to be a bit cautious now. You can't just dismiss the correction at the beginning of this month as simply a blip," said BNP Paribas senior metals market strategist Stephen Briggs. "Investors are not quite as confident as they were a few months ago, so we're not back to the races just like that." Rising copper inventories have also put pressure on the metal.
The latest data shows stocks fell, but total inventories are within 1 per cent of 10-month highs and are still up nearly one quarter this year. Nickel stocks fell 48 tonnes and lead inventories were unchanged. The International Nickel Study Group (INSG) reported a 6,000
Shanghai copper rises The most-active July copper contract on the Shanghai Futures Exchange closed 0.9 per cent higher at 67,440 yuan per tonne. tonne deficit in the refined nickel market for March, and the balance for the first quarter showed an 11,000 tonne deficit, helping to explain a drawdown in LME stocks, Credit Suisse said in a note. "While this data reflects strong underlying demand, the longer-term outlook is characterized by some risks as the mine supply pipeline looks strong," Credit Suisse said. Nickel fell to its lowest since December, closing at $23,555 a tonne. Lead ended at $2,473 versus $2,445 a tonne. The battery material was one of the biggest gainers among base metals on Wednesday. LME stocks of aluminium fell by 2,050 tonnes, to come off a record high level of 4.71 million tonnes hit on Wednesday. Cash aluminium to the threemonth contract is now in a $17.50 a tonne contango, or discount, that could discourage deliveries to LME warehouses. Aluminium ended at $2,499 a tonne from $2,556 at the close on Wednesday. It earlier fell to its lowest since mid-March at $2,483.25 a tonne. Zinc ended at $2,135 a tonne from $2,188, and tin closed at $28,250 from $28,400 a tonne. -Reuters
Demand, overseas mkts lift palm to 3-wk highs KUALA LUMPUR: Malaysian palm oil futures hit more than three-week highs on Thursday as traders bet on strong overseas demand on the back of firm commodity markets. "Rumours saying that palm oil exports during May 1-20 could hit 780,000 to 800,000 tonnes, that's very high," a trader with foreign brokerage in Kuala Lumpur told Reuters, referring to key export data due on Friday. Earlier this week, cargo surveyors showed palm oil exports in the first half of this month jumped as much as 33 per cent to 601,984 tonnes from one month ago. The benchmark August crude palm oil contract on Bursa Malaysia Derivatives closed 1.9 per cent higher at 3,360 ringgit ($1,107.997) per tonne. It earlier touched 3,367 ringgit -- the highest since April 25. Palm oil was further bolstered by adverse crop weather
in Europe and the United States, which threatened to curb grain supplies, fuelling a rally across commodity futures. On the other hand, talks over higher stocks this month kept some players on the sidelines. "Stocks could rise about 11 to 12 per cent this month," said another trader in Kuala Lumpur, who expects cargo surveyors to show little or no growth in Malaysia's May 1-20 palm oil export data due on Friday. He added: "On the technical side, palm oil is trying to get support from Chicago and Dalian markets but it is not going to last because sales in the physical market are quite slow." US soyoil for July delivery rose 0.6 per cent in Asia trading hours, while the most active January 2012 China soyoil contract on Dalian Commodity Exchange climbed 0.7 per cent. -Reuters
Raw sugar falls as supply outlook weighs LONDON: Raw sugar futures on ICE fell on Thursday, weighed by an increasingly bearish supply outlook, while coffee and cocoa also registered losses. Dealers noted Rabobank projected a global surplus of 5.7 million tonnes in 2011/12 (October/September) and revised up its 2010/11 (October/September) surplus estimate to almost 3 million tonnes on Thursday. Analysts at Brazilian bank Itau BBA forecast an even larger 2011/12 global sugar surplus of 6-8 million tonnes, up from a surplus of around 3 million tonnes in 2010/11. July raw sugar on ICE stood 0.73 cent or 3.2 per cent lower at 22.12 cents a lb at 1458 GMT. August white sugar on Liffe fell $5.90 or 0.9 per cent to $627.10 per tonne. Arabica coffee futures were also lower as the market fell further from a 34-year peak set earlier this month although a shortage of high quality beans remained a concern. ICE July arabica coffee was down 6.2 cents or 2.3 per cent at $2.6385 per lb at 1051 GMT, below the 34-year peak of $3.0890 hit on May 3. Liffe July robustas were up $4 or 0.2 per cent at $2,535 a tonne as its discount to the arabica market narrowed further from recent record levels. ICE cocoa futures were lower, as the pace of exports from top producer Ivory Coast picked up, after a political crisis stalled trade for several months. Dealers are concerned that the recent conflict in Ivory Coast could have had a negative impact on the country's mid crop which runs from April to September. ICE July cocoa was down $14 or 0.5 per cent at $2,981 per tonne, while Liffe July cocoa traded up 2 pounds at 1,867 pounds a tonne aided by softer sterling. -Reuters
Indian sugar ends lower MUMBAI: India's spot sugar price edged lower on Thursday as strong supply from mills outweighed the summer demand from north Indian states, traders and analysts said. In Kolhapur, a key market in top producing Maharashtra state, the most traded S-variety closed down 6 rupees at 2,629 rupees per 100 kg. The most active sugar for June delivery on National Commodity and Derivatives Exchange (NCDEX) closed down 0.37 per cent at 2,687 rupees per 100 kg. "There is nothing in the market, which could push the prices. Production of sugar is more than the demand and this will keep the prices under pressure," said Mukesh Kuwadia, secretary, Bombay Sugar Merchants Association. Demand for the sweetner from ice cream and soft drink makers usually goes up during summer. India's sugar output is expected to drop 3.2 per cent from a previous forecast for the season that began in October, the chief of a leading industry body has said, diminishing prospects of further exports from the world's top consumer. -Reuters
National Commodity Exchange Ltd Trading Summary Date
Commodity
19-May-2011 CRUDE100 19-May-2011 CRUDE100 19-May-2011 CRUDE100 19-May-2011 SILVER - 500oz 19-May-2011 SILVER - 500oz 19-May-2011 GOLD 01oz 19-May-2011 GOLD 01oz 19-May-2011 GOLD 01oz 19-May-2011 GOLD 100oz 19-May-2011 GOLD 100oz 19-May-2011 GOLD 100oz 19-May-2011 GOLD 19-May-2011 GOLD 19-May-2011 GOLD 19-May-2011 KILOGOLD 19-May-2011 KILOGOLD 19-May-2011 TOLAGOLD50 19-May-2011 TOLAGOLD100 19-May-2011 MINIGOLD 19-May-2011 MINIGOLD 19-May-2011 MINIGOLD 19-May-2011 MINIGOLD 19-May-2011 MINIGOLD 19-May-2011 TOLAGOLD 19-May-2011 TOLAGOLD 19-May-2011 TOLAGOLD 19-May-2011 TOLAGOLD 19-May-2011 TOLAGOLD 19-May-2011 IRRI6W 19-May-2011 RICEIRRI - 6 19-May-2011 RBD PALMOLEIN 19-May-2011 KIBOR3M 19-May-11 KIBOR3M
Contract Date
Price Quotation
Open
High
Low
Close
JU11 JY11 AU11 JU11 JY11 JU11 JY11 AU11 JU11 JY11 AU11 JU11 JY11 AU11 JU11 JY11 JU11 JU11 MON TUE WED THU FRI MON TUE WED THU FRI 19MY11 JU11 JU11 11-Jun 11-Sep
US$ Per Barrel US$ Per Barrel US$ Per Barrel US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce US$ Per Troy Ounce Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per Tola Per Tola Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per Tola Per Tola Per Tola Per Tola Per Tola Per 100 kg Per 100 kg Per Maund Per Rs. 100 Per Rs. 100
98.20 98.64 99.36 34.56 34.37 1491.50 1491.50 1492.90 1490.00 1492.40 1492.70 41135.00 41245.00 41263.00 41208.00 41218.00 48064.00 48064.00 42341.00 42387.00 42403.00 42310.00 42325.00 48719.00 49009.00 48790.00 48683.00 48891.00 3501.00 3536.00 5264.00 86.65 85.49
100.91 101.19 101.50 35.70 35.69 1499.70 1500.30 1501.00 1499.70 1492.40 1500.00 41481.00 41493.00 41511.00 41453.00 41465.00 48350.00 48350.00 42568.00 42616.00 42632.00 42648.00 42552.00 48981.00 49036.00 49054.00 49072.00 49050.00 3525.00 3560.00 5298.00 86.65 85.49
97.75 98.30 99.08 34.38 34.37 1488.40 1488.70 1489.20 1489.50 1492.20 1490.90 41125.00 41245.00 41263.00 41208.00 41218.00 48064.00 48064.00 42341.00 42387.00 42403.00 42310.00 42325.00 48719.00 48772.00 48790.00 48683.00 48701.00 3501.00 3536.00 5264.00 86.55 85.49
100.13 100.59 100.92 35.41 35.42 1491.50 1492.20 1492.80 1491.50 1492.20 1492.20 41481.00 41493.00 41511.00 41453.00 41465.00 48350.00 48350.00 42568.00 42616.00 42632.00 42648.00 42552.00 48981.00 49036.00 49054.00 49072.00 48962.00 3525.00 3560.00 5298.00 86.55 85.49
Traded Volume in lots 132 149 13 77 275 1,628 2,654 3,165 46 35 9 1 21 -
Previous Settlement Price 98.26 98.72 99.08 34.58 34.58 1491.80 1492.40 1493.00 1491.80 1492.40 1493.00 41236.00 41245.00 41263.00 41208.00 41218.00 48064.00 48064.00 42341.00 42387.00 42403.00 42310.00 42325.00 48719.00 48772.00 48790.00 48683.00 48701.00 3501.00 3536.00 5264.00 86.65 85.49
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 100.13 8 100.59 40 100.92 7 35.41 14 35.42 30 1491.50 854 1492.20 2,254 1492.80 2,382 1491.50 7 1492.20 1492.80 5 41481.00 11 41493.00 41511.00 41453.00 41465.00 48350.00 48350.00 42568.00 42616.00 42632.00 42648.00 42552.00 48981.00 13 49036.00 16 49054.00 49072.00 48962.00 22 3525.00 3560.00 5298.00 86.55 85.49 -
CASARES: Francesco Molinari of Italy tees off on the third hole during the group stages of the Volvo World Match Play Championships at Finca Cortesin
10 Pak-India hockey series must this year: Qasim Zia LAHORE: President Pakistan Hockey Federation (PHF), Qasim Zia has said that Pakistan-India hockey series would be held during current year. Talking to media after returning from Malaysia at Lahore airport on Thursday, President Pakistan Hockey Federation, Qasim Zia said that PakistanIndia hockey series would be held during current year. He further said that the players are struggling hard to achieve targets made by PHF, with discipline and if the performance would remain same then the team would become one of the leading team in Olympics. He expressed satisfaction over performance of the hockey team and hoped that the future of the team would be bright. -Online
Nash hopes for more St Kitts success ST KITTS: Brendan Nash, the West Indies vice-captain, is hoping that a return to St Kitts will bring him another big score as his side aims to wrap up the series against Pakistan. The second Test begins on Friday at Warner Park, where Nash last year made his highest Test score, 114 against South Africa. West Indies are coming off a morale-boosting victory in the first Test in Guyana, their first Test win in more than two years. However, Nash didn't have much impact in the match, scoring 5 in the first innings and 3 in the second, and he wants to play his part in St Kitts. "Last year when we played here we got a really good batting surface and I managed to get a good century, which was my second century for the West Indies," Nash said. "We were outplayed by the South Africans in the first match in Trinidad, but we rebounded to get what you could say was a fighting draw here in St Kitts. "I felt I batted really well, adding some valuable runs with Shiv [Chanderpaul], who also got a good century. Shiv and I put on a very good partnership. There were quite a few runs scored in that match and it was good the way we responded. Coming back here again this year I will be looking for another big score for the team. I didn't get many in Guyana so I know I will be looking to make a greater contribution in this match. -Online
Friday, May 20, 2011
ODI captaincy goes to Misbah, says Butt KARACHI: The Pakistan Cricket Board has removed Shahid Afridi as one-day team captain for the forthcoming series against Ireland. Chairman of the board Ijaz Butt told a media conference in Islamabad that senior batsman Misbah-ul-Haq would lead the team in the two one-day matches against Ireland on May 28 and 30. "Afridi has been retained as a player in the one-day squad but the captaincy has gone to Misbah," Butt said without elaborating the reason for the decision. PCB spokesman Nadeem Sarwar told The Associated Press that it is the "policy of the board to appoint a captain on a series to series basis." Afridi had captained the team to the World Cup semifinals where they lost to India and recently also guided them to a 3-2 win over the West
Indies in the ODI series in the Caribbean. Afridi ruffled feathers in the PCB and team when he returned from the Caribbean early this month and told the media that he was not happy with people interfering in his work. Although the all-rounder didn't name names, media reports said he had developed differences with head coach Waqar Younis over team selection issues. The PCB issued a notice to Afridi to explain his conduct as he had violated the players' code of conduct with his statement on team affairs. Butt made it clear Afridi had never been given any assurances regarding the captaincy. He pointed out that the present policy of the board was to appoint captain on a series-toseries basis. Afridi had struggled with bat
Onions returns from dark times LONDON: Graham Onions, the England fast bowler, feared his cricket career could have been over when he was told he needed surgery on his back last year. He didn't play at all during the 2010 English season, but returned earlier this summer and made such strides that he will appear for England Lions against the Sri Lankans this week. The last time Onions played a match for England he staved off the final over from Morne Morkel in Cape Town, the second time in three Tests he performed that match-saving feat, having survived Makhaya Ntini in Centurion. He was controversially overlooked for the final match of that series at the Wanderers, and when the Test squad reassembled in Bangladesh last February, Onions began getting pain in his back. He flew home from Bangladesh, and after three attempts to battle through and recover by resting, he had to go under the knife. It left him with a titanium pin in the left side of his back and, understandably for such a major operation, Onions admitted to "dark times" in the immediate aftermath. "There have certainly been times where I've doubted whether I'd get the ball back in my hand - whether I'd still be able to bowl quickly, and be the same bowler," he said on the eve of playing for the Lions. "All those things go through your mind. There were times when I didn't think I was going to play again.
"There have been tough times, and dark times. But I'm sitting here today with an England tracksuit on and with a great opportunity to play against a very good Test side." Onions has been carefully managed by Durham during his return to action and he wasted no time in making his mark with a five-wicket haul in his first match back, against Yorkshire. Despite the seriousness of his injury, Onions is confident he will suffer no lasting effects. He has now set his sights on adding to his eight Test caps, although he knows others are ahead in the pecking order after his absence. A possible opening had emerged with Tim Bresnan likely to miss the Sri Lanka series because of a torn calf, but Onions isn't getting carried away. Ajmal Shahzad and Steven Finn are the more likely candidates. "I'm playing professional cricket again for Durham, bowling as fast as I can, and I've had no reaction from it at all," he said. "I am 99.9% sure I will be absolutely fine for the rest of my career. "My aspirations have never changed. I like to think I am good enough to play for England. A few people have leapfrogged me, and I appreciate that. It has been bitterly disappointing to be able to do nothing while my place in the England side is taken by someone else. But I am looking forward to challenging those guys who are ahead of me now getting back into the side, whether it is next week or later in the season." -Reuters
and ball in the one-day series in the West Indies but has been leading the national team in limited overs cricket since early 2010 while Misbah has been test captain since last year. The national selectors have made no changes in the test squad playing in the West Indies at present but included Afridi and senior batsman Younis Khan in the side for the Ireland matches. Younis had returned home before the first test in the West Indies due to the death of his elder brother. Pakistan squad: Misbah-ulHaq (Captain), Younis Khan, Taufiq Umar, Mohammad Hafeez, Asad Shafiq, Azhar Ali, Shahid Afridi, Mohammad Salman,Saeed Ajmal, Abdul Rehman, Umar Akmal, Umar Gul, Wahab Riaz, Junaid Khan, Tanvir Ahmed, Hammad Azam.
WBCC adoptes new eye sight rules: PBCC ISLAMABAD: Pakistan Blind Cricket Council (PBCC), Chairman, Syed Sultan Shah said on Thursday that World Blind Cricket Council (WBCC) has adopted new eye-sight classification rules. Addressing a press conference here, Shah said that all the totally blind (B1) Cricket Players will wear dark glasses in the field. Shah, who is also the first vice-president of World Blind Cricket said that the PakistanIndian series will boost up both the countries relations as well. India blind cricket team will tour Pakistan in November for a 3 ODI and 3 twenty-20 matchs series. Shah said that PBCC hosted the 15th AGM of WBCC at UAE on May 14-15. He said that in the meeting WBCC discussed and decided various matters including India will host the inaugural Twenty-20 Blind Cricket World Cup in December 2012. "Ten WBCC full member countries will take part in this event. The event will be inaugurated on December 3 (The international day for the disables)," Shah said. The Chairman said that WBCC has invited the bids from the member counties to host conventional one-day Cricket World Cup 2014. "WBCC will request the international Paralympics Committee (IPC) to recognise WBCC as a governing body of Cricket for the Blind and further to include the shorter version of T-20 Cricket for the Blind in Paralympics as a Medal sport. -APP
BRUSSELS: Peng Shuai of China celebrates a point against Sofia Arvidsson of Sweden during the quarter-final match of the WTA Brussels Open tennis tournament. -Reuters
Ireland name squad against Pak ODIs LONDON: Cricket Ireland on Wednesday announced a squad of 14 for the two RSA Series One Day Internationals against Pakistan at Stormont on 28 and 30 May. The squad has a familiar look to it, with 13 of the 15 players who competed in the recent World Cup named. The two missing are Andre Botha, who retired earlier this month and Somerset spinner George Dockrell, who hasn't recovered fully from his dislocated shoulder. Hamish Marshall, who became qualified to play for Ireland last month, misses out with a fractured right thumb sustained while playing for Gloucestershire against Middlesex. The one new face in the squad is Strabane opening batsman Niall McDonnell, who scored a century for Ireland A against MCC in Dublin last season. The 31-year-old school teacher was clearly delighted at news of his call-up saying: 'I can honestly say that I can't find a word to describe how I felt when Peter Gillespie rang me; I suppose it was a mixture of excitement, raw nerves and
a little trepidation at being involved at this level. 'It's a dream come true in many ways and the prospect of batting with the likes of Paul Stirling, William Porterfield or Ed Joyce is some motivation. 'I can't underestimate the role Adi Birrell and particularly Jeremy Bray have played in my development. 'Jeremy is so focused on his new role as one of Cricket Ireland's High Performance coaches that his determination and enthusiasm just rubs off on everyone he works with. 'Just being involved with this Ireland squad is an opportunity that I fully intend to make the most of.' Ireland coach Phil Simmons said of the squad: 'There aren't a lot of surprises as we haven't had any cricket since the World Cup finished. 'We'll train hard in the build-up to the game, and hopefully the conditions at Stormont will suit us. 'The county players have been playing some excellent cricket, and most of them seem to be in really good form which is encouraging for Irish cricket. -Reuters
Foolproof security to teams in Pakistan pledged ISLAMABAD: Interior Minister Rehman Malik has said that foolproof security will be provided to all the foreign cricket teams in Pakistan. Talking to media persons along with Pakistan Cricket Board (PCB) Chairman Ijaz Butt in here on Thursday, he said propaganda at the international level was being hatched regarding the security situation in Pakistan. He said it was not only Pakistan that was facing security problems but it was also an issue the world over. The PCB Chairman said Cricket teams of India and Afghanistan would visit Pakistan in near future. He said the first match against Afghanistan would be played on Tuesday in Pakistan while Indian Team will visit Pakistan during the current year. -NNI
Weak bowling attack concerns SLanka LONDON: Four changes to a winning Sri Lanka team, only one of them injuryenforced, created a brief flurry of concern among their supporters before the World Cup final against India in Mumbai on April 2. Most of the debate surrounded the omission of Ajantha Mendis, who had taken three wickets in the semi-final against New Zealand. Rangana Herath, another spinner, was also dropped. The reshuffled attack was soon forgotten when Sri Lanka raced to 274 for six. It seemed totally irrelevant when Lasith Malinga dismissed India's two dangermenVirender Sehwag and Sachin Tendulkar for a total of 18 runs. Yet from these depths, India still managed to win with six wickets and 10 balls to spare. Apart from Malinga, Sri Lanka's attack proved inadequate with even the mighty Muttiah Muralitharan going wick-
etless in his final match for his country. To add to Sri Lanka's woes, Malinga has subsequently retired from test cricket, Chaminda Vaas is deemed too old and Mendis no longer mystifies the better batsmen. All of which makes their new captain Tillakaratne Dilshan's dream of winning a series for the first time in England more difficult. Sri Lanka are now coached by Stuart Law, who has taken over the job from fellow Australian Trevor Bayliss on a parttime basis. The new management team have a tough job in the early part of the English summer against a resurgent home side whose erratic World Cup performances will quickly be forgotten whereas their Ashes heroics in Australia will live forever. "It's no easy task going up against the best test team in the world at the moment, they've had a fantastic 18 months," Law
said after Sri Lanka had won their opening tour match against Middlesex. "We know we are up against it here but we aren't here to lose. We can match them if we apply ourselves and keep things simple. "We can be a devastating team and that's what we are planning on doing. We are here to play cricket the way Sri Lanka play cricket and if we do we'll be successful." MATCH-FIXING ALLEGATIONS Batting will not be a problem with two former captains Kumar Sangakkara andMahela Jayawardene, who scored a wonderful century in the World Cup final, joining the team from the Indian Premier League before next week's opening test in Cardiff. "Mahela and Kumar have played here a million times," Law added. "They know what to expect. It would be nice to have everyone here two weeks before a big test
match but circumstances don't allow that these days." Diharo Fernando is the leader of the pace attack, although he is now 31 and his 90 test wickets have been accumulated over the course of a decade. He will be supported by 24-year-old Nuwan Pradeep, who did not play with a cricket ball until he was 20. Pradeep, like Malinga, has an untutored slinging action and Sri Lanka hope he will play a similar role. "Filling Malinga's boots will be tough. We've got a young kid on our squad who's similar and hopefully he stands up to take his place," Law said. "He's the future. We have to find someone else who wants to play for 10-15 years." Off the field, in an unpleasant reminder of the corruption scandal which ruinedPakistan's tour of England last year, former Sri Lanka captain Hashan
Tillakaratne has said he is ready to share information with the International Cricket Council (ICC) to back allegations of match-fixing. "Match-fixing is something which has been in this country over a period of time," Tillakaratne was quoted as saying by the Sri Lanka Daily Mirror. "This has spread like a cancer today. There were threats of this issue being exposed at various times. But it was pushed down by giving money to various people. If the people who were responsible for that are listening to this, I state this today with great responsibility, I will shortly reveal the names of those responsible." Law said the Sri Lankan management did not want to discuss Tillakaratne's allegations. "He says he is going to name names," Law said. "Let's wait and see what he does. All we can do is play cricket." -Reuters
US jobless claims fall,regional mfg'ing slows WASHINGTON: The number of Americans filing new claims for jobless benefits fell last week, but other data on home sales and regional factory activity suggested the economy remained on a moderate growth path. Initial claims for state unemployment benefits fell 29,000 to a seasonally adjusted 409,000, the Labor Department said on Thursday, continuing to unwind the prior weeks' spike. Though the drop exceeded economists' expectations for a fall to 420,000, claims stayed above above the 400,000 level that is normally associated with stable job growth for a sixth straight week. The data covered the survey period for the government's closely watched employment report for May, which will be released early next month. "Jobless claims are still at levels consistent with moderate job growth and little progress in bringing unemployment down," said Avery Shenfeld, chief economist at CIBC World Markets in Toronto. A second report showed factory activity in the nation's Mid-Atlantic region slowed sharply in May. The Philadelphia Federal Reserve Bank said its business activity index slumped to 3.9 from 18.5 in April.
Economists had expected a reading of 20. A reading above zero indicates expansion in the region's manufacturing. "We're probably past the peak in regard to manufacturing activity, but we don't think manufacturing activity is stopping. We just think it is slowing a bit," said Tom Porcelli, a U.S. economist at RBC Capital Markets in New York. Separately, sales of previously owned homes fell 0.8 percent last month to an annual rate of 5.05 million units, the National Association of Realtors said. Economists had expected sales to rise to a 5.2 million unit-rate. The factory and housing reports were the latest to suggest the economy struggled to regain momentum as the second quarter started. Manufacturing has been leading the recovery and economists still expect the trend to continue. U.S. stocks pared gains and were last trading flat, while prices for government debt trimmed losses. The dollar fell against the euro and cut gains against the yen. The four-week moving average of unemployment claims, a better measure of underlying trends, rose 1,250 to 439,000 - the highest level since mid-November.
The recent jump in claims, blamed on auto layoffs because of supply chain disruptions from March's Japanese earthquake and problems with adjusting data for seasonal variations, had raised fears of a pull-back in the pace of job creation. Employers added 244,000 jobs in April, the most in 11 months. However, the unemployment rate rose to 9 percent from 8.8 percent in March. A Labor Department official said only one state or territory, the Virgin Islands, had been estimated, indicating the report was largely clear of distortions. The number of people still receiving benefits under regular state programs after an initial week of aid fell 81,000 to 3.71 million in the week ended May 7. Economists had expected so-called continuing claims to fall to 3.72 million from a previously reported 3.76 million. The number of people on emergency unemployment benefits increased 53,398 to 3.47 million in the week ended April 30, the latest week for which data is available. A total of 7.94 million people were claiming unemployment benefits during that period under all programs. -Reuters
Fed's Dudley: Considerable way to go in recovery NEW PALTZ: The U.S. recovery is proceeding at a moderate pace, but the economy has "a considerable way to go" before it meets the Federal Reserve's dual mandate of full employment and price stability, a top Fed official said on Thursday. New York Federal Reserve Bank President William Dudley told students in New Paltz, New York that unemployment still remains "unacceptably high" and most measures of underlying inflation trends remain below the Fed's comfort zone. "The recovery remains moderate and we still have a considerable way to go," said Dudley, who is seen as one of the more dovish Fed officials. Dudley said a weaker-thanexpected economic performance in the first quarter "probably will prove temporary." He noted, for example, a better jobs picture. "The labor market has shown further improvement," he said. The U.S. economy added 244,000 jobs in April, according to the government's closely watched non-farm payrolls report. "I am hopeful that job growth will continue to strengthen in coming months." Dudley also pointed to signals of manufacturing growth and improving financial conditions as well as fiscal measures that are supporting demand in the United States. He added that that demand from overseas remains robust, supporting U.S. exports. -Reuters
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China Mobile is seeking acquisition opportunities in emerging markets such as Myanmar to expand its foothold overseas, its chairman said on Thursday. The dominant mobile carrier in China invested around $300 million last year in Pakistan, where the telecom sector has boomed over the past decade with around 100 million mobile phone subscribers. China Mobile has already hit around 10 million subscribers in Pakistan, "and if we can break even next year that will certainly give us more confidence to invest in emerging markets," Wang Jianzhou, chairman of China Mobile, told a news conference after a shareholders' meeting. China Mobile has been trying to make inroads in overseas markets, though not all its attempts have been successful. Its move to purchase a 12 per cent stake in Taiwan's Far Eastone process has been stalled due to the Taiwan government's worries over national security. Wang also said the company would not be issuing new shares if it decided to list A-shares in China, but gave no further details. "We don't need the money. We have enough cash," Wang said. On Thursday, company executives said they expected the company's ARPU to fall further, in line with analysts' views, as many users were from the lower end of the market in the country's rural areas. April the carrier, which has more than 600 million users, posted a 5.4 per cent rise in first-quarter net profit to 26.9 billion yuan ($4.1 billion). -Reuters
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Committee of the Chinese People's Political Consultative Conference and science and technology minister, said Pakistan is China's most important trade partner in South Asia. "In the past 10 years, bilateral trade has been growing at an annual speed of 20 percent," Wan said. Bilateral trade reached 8.6 billion dollars in 2010, up 27.7 percent from previous year, according to Chinese Customs. The two countries signed a free trade agreement in 2006, which was a milestone in their economic and trade relations, Wan said. In the future, China and Pakistan will enhance cooperation in energy, infrastructure, telecommunications and agriculture, Wan added. "I hope, with joint efforts between the entrepreneurs of the two countries, bilateral relations will enter a new phase through all forms of economic cooperation, including trade and investment," Wan said. At the forum, China Huadian Corporation and China TBEA also signed cooperation agreements with Pakistan's Ruba Group. The forum, co-hosted by the China Council for the Promotion of International Trade and the Pakistani Embassy in China, gathered more than 200 entrepreneurs from China and Pakistan. Meanwhile, addressing at an extensive interactive session here at the Peking University with the students, Prime Minister Gilani said the United States had assured Pakistan of no more unilateral action inside its territory and only joint operations would be conducted in this regard. Prime Minister said, "If there is any information about a High Value Target, that information needs to be shared and there will be a joint operation." Prime Minister Gilani noted the concern of the students of Peking University over the violation of Pakistan's sovereignty and said his government had condemned the US military operation in Abbottabad. -Agencies
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letter to Gates and US Secretary of State Hillary Clinton that finding bin Laden in a Pakistani garrison town indicates "a lack of commitment by the Pakistani military to aggressive cooperation with the United States." But Gates has warned that Obama's administration should not simply point the finger: "It's hard to go to them with an accusation when we have no proof that anybody knew." "I have seen no evidence at all that the senior leadership knew. In fact I've seen some evidence to the contrary," US Defense Secretary Robert Gates told a Pentagon press conference - the first since bin Laden was killed at the beginning of May. However, he did say it was his "supposition that somebody
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Economy & Continuations
Friday, May 20, 2011
knew, that somebody had to know, but we have no ideas who and no proof and no evidence." "I think we have to proceed with some caution," he added. The Pentagon chief also said that the aftermath of the raid presented a potential "opportunity," with Pakistan pledging to take more action. This view was corroborated by the chairman of the US Joint Chiefs of Staff, Admiral Mike Mullen, who pointed out that General Ashfaq Pervez Kayani, Pakistan's army chief, had promised to go after the leaders of the Haqqani network, one of the insurgent groups blamed for launching attacks on US forces in neighboring Afghanistan. Mullen also cautioned against cutting off aid to Pakistan. "I think the region continues to be critical and our relationship continues to be critical," he said, adding that it would have a "significantly negative outcome if the relationship got broken." -NNI
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Government will soon come up with a policy for Low Btu Gas to facilitate the explorers. Addressing security concerns of the companies working in Baluchistan, the Minister said that the companies should take the locals on board to ensure their security and the government will also take appropriate measures to safeguard the life and property of the employees of the exploration companies. He added that the lease for exploring the blocks will be cancelled and will not be renewed if the companies are not able to meet their commitment within the specified time. -NNI
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Kayani and other senior leader reaffirms the desire to have a relationship. But I think we both recognise it's going through a very difficult time right now. So the specific steps that we need to take are yet to be determined," he said. "I think we need to give them some time and space to work on some of the internal challenges that came out of this, while at the same time the things there are some near-term things that we think actions need to be taken," Mullen said. "So certainly, I mean, he (Kayani) is not just a peer of mine, but he's a friend and, you know, he's been through a lot. And as the leader, I can tell you... at the top of these organisations it's a pretty lonely place." "So from that standpoint, he's out with his military. He's working his way through that. And I am certainly sympathetic to his need to do that and at the same time move ahead," Mullen said. -Agencies
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tax, it is being pursued like Kalabagh Dam. If Government is serious enough in bringing agriculture tax as direct tax then they have to deal it on Federal level first and later transfer it to provinces as per its devolution plan. After witnessing higher real GDP growth of 6.8 per cent in FY07, it dipped down to 1.2 per cent in FY09. This year it is expected to remain between 2-3 per cent against annual target of 4-5 per cent. Fiscal deficit has slightly came down by Rs214 billion in 2011 compared with Rs221 billion in 2010 and current account has moved into surplus by $509 million in 2011 compared with a deficit of $3.9 billion during FY10 as of April 2011. Keeping above mentioned scenario, it looks unlikely that SBP would cut down its discount rate to boost real GDP growth nor would it is going to raise it in spite of expected surge in inflationary pressure. Another indicator is current M2 growth that stands at 11.01 in FY11. This should be around 15-16 per cent i.e. by combining inflation at 13% + 2-3% as real GDP growth. So for making economy comfortable in monetary terms gap exists at the moment that needs to be plugged. Apparently LSM growth is picking up i.e. as of March 2011 it is 6.75%, further agriculture is also on surge so next year probably we may witness positive real GDP growth as historically these two sectors have always proved supportive in picking up real GDP growth in Pakistan. Finally with no change in discount rate government is required to bring some structural reforms in its upcoming budg-
Eurozone eyes new deal for Greece; ECB issues threat
n ECB say would reject bonds as collateral if restructured BRUSSELS/BERLIN: Euro zone governments are considering a plan to prevent a Greek default under which private investors would be asked to maintain their exposure to its debt and Athens would receive a new package of EU/IMF aid, euro zone sources said. The sources told Reuters of the new strategy on Thursday after the European Central Bank raised the stakes in its bid to prevent a restructuring of Greek debt by telling governments it would refuse to accept the bonds as collateral in the event of such a move. The threat, made by ECB Executive Board member Juergen Stark at a conference in Athens on Wednesday came after European finance ministers raised the possibility of a "soft restructuring" via debt maturity extensions earlier this week. One source with insight into European discussions on Greek debt said any "soft" or "hard" restructuring that might trigger a "credit event" -- or the payout of default insurance contracts -- was now off the table. Instead of a maturity exten-
sion, which might decrease the value of bonds and trigger such an event, banks would be encouraged to maintain their holdings of Greek debt and buy new bonds to replace issues as they matured, the source said. This would be done in combination with a new package of Greek reforms and austerity, as well as more EU/IMF money to secure Greece's funding needs through 2014. "We hope to have an agreement by the end of June," the source told Reuters. The source did not make clear how the bloc would convince owners of Greek bonds to roll over their holdings nor say how much additional aid the EU/IMF might be willing to provide on top of the 110 billion euro package given to Greece last year. VIENNA INITIATIVE EU Economic and Monetary Affairs Commissioner Olli Rehn has referred to the Vienna Initiative as a model for debt rollover. The initiative was an agreement at the height of the global financial crisis between the European Central Bank, the
European Bank for Reconstruction and Development, regulators and banks with subsidiaries in central and eastern Europe. Under it, parent bank groups publicly committed to maintain their exposures and recapitalise their subsidiaries in central and eastern European countries as part of financial aid packages from the European Union and the IMF. Greek sovereign debt is forecast to rise to nearly 350 billion euros by the end of 2011, or 154 percent of its gross domestic product (GDP), one of the highest levels in the world. Many economists say a restructuring of the debt is inevitable, but European governments have promised not to force losses on creditors before mid-2013. ECB officials have warned for weeks that a debt restructuring would have catastrophic consequences for the euro zone and stepped up their rhetoric this week after Eurogroup Chairman JeanClaude Juncker suggested the bloc was open to a voluntary extension of Greek debt maturities.-Reuters
et i.e. structuring it on balance sheet approach i.e. to manage its revenues and liabilities (borrowings) separately under separate head of accounts, to increase tax to GDP ratio by documenting Services, Whole sale, Retail and agriculture sectors, to pledge for keeping developmental budget intact and to utilize it on priority areas viz: dams, health and educational projects with oversight by Council of Common Interest.
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Africa, testified on Wednesday before a grand jury. It will decide in secret whether there is enough evidence to formally press charges with an indictment. "The proceedings are ongoing," her lawyer, Jeffrey Shapiro, said. Strauss-Kahn's arrest has dashed his prospects to run for the French presidency in 2012 and raised broader issues over the future of the International Monetary Fund. European Commission President Jose Manuel Barroso said Europe would naturally put forward a candidate to replace Strauss-Kahn if he were to step down. Germany, which wants a European to keep the job, said the IMF should deal with its immediate leadership internally and that it is too early to discuss a successor to Strauss-Kahn. -Reuters
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Energy major Reliance Industries, which has the heaviest weight on the benchmark index, rose 1.5 per cent to 915.50 rupees after UBS upgraded the stock to buy from neutral, citing attractive valuations compared to Asian peers. The stock has fallen almost 13.5 per cent this year, mainly on concerns over decline in gas output from its blocks off India's east coast. Beaten down auto stocks pulled back and the sector index was up 0.2 per cent. Top truck maker Tata Motors rose 0.15 per cent and utility vehicles maker Mahindra and Mahindra gained 0.9 per cent. Amongst the main losers were top-listed realtor DLF and utility Tata Power, dropping 3.6 percent and 2.8 percent respectively. State Bank of India continued its losing run after disappointing results and closed down 1.4 per cent at 2,322.30 rupees. The bank, the country's largest lender, has dropped more than 11 per cent after posting an unexpected slump in March quarter profit on Tuesday due to higher provisioning and operating costs. The 50-share NSE index closed 0.14 per cent up at 5,428.10 points. In the broader market, 928 losers were ahead of 469 gainers. Volume was 420 million shares, the lowest in at least a month. -Reuters
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average (5,928), but the lingering concerns over European debt, Middle East unrest and commodity demand from emerging markets will stunt progress," said Jimmy Yates, head of equities at CMC Markets. Integrated oils fuelled the majority of gains on London's blue chip index as analysts continued to talk up buying opportunities in the sectors after the recent sell off. BP RISE BP rose 1.6 percent as Bank of America Merrill Lynch upgraded the oil major to "buy" from "neutral", after the collapse of BP's Arctic deal with Russia's Rosneft. "The risk/reward on the stock is skewed to the upside based on a combination of compelling valuation, upside from a resolution to the Rosneft deal, which we see positive either way and growth opportunities medium term," the broker says. Oil services firm Petrofac climbed 3.9 per cent as Collins Stewart raised its rating to "buy" on valuation grounds and future earnings potential. Temporary power provider Aggreko was 3.4 per cent higher with traders citing a bullish note from Goldman Sachs, which added the stock to its conviction buy list. Banks, which have been a laggard recently, rose as some risk appetite returned. Barclays gained 2.5 per cent. Elsewhere, ITV was up 4 per cent, after Bernstein Research raised its recommendation on the free-to-air broadcaster to "outperform", citing valuation grounds. Wall Street, however, was muted, weighing on London's gains after data showed factory activity in the US Mid-Atlantic region grew much more slowly than expected in May, offseting a fall in new claims for unemployment benefits. Although Glencore's London float stole the headlines, shares of LinkedIn Corp surged more than 100 per cent in their public trading debut on Thursday in New York, a jump reminiscent of the heyday of investors' love affair with Internet stocks in the late 1990s.-Reuters
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shares which were already battered after the earthquake," said Cosmo Securities' Shimizu. The Nikkei has tumbled some 7.8 per cent since the earthquake, while Asian stocks outside Japan have gained about 6 percent. Market sentiment has been low as the outlook for many Japanese companies following the March 11 earthquake remains unclear and investors are still jittery about the impact of summer power cuts and the handling of a compensation scheme for those affected by radiation leaks at Tokyo Electric Power Co's Fukushima nuclear plant. Investors said news that Japan's gross domestic product contracted 0.9 per cent in the first quarter, more than the median market forecast for a 0.5 per cent drop, also contributed to the Nikkei's fall FOREIGNERS KEEP BUYING Losses in the benchmark were limited with investors citing continued buying of Japanese stocks by foreign players as one factor supporting the Nikkei. Basket orders from European investors for some 10 billion yen were detected at the beginning of trade on Thursday. "It seems that apart from rises in commodities, the fact that foreigners have continued to buy Japanese stocks despite recent weakness is boosting confidence among investors," said Hideyuki Ishiguro, a supervisor at Okasan Securities. Foreign investors' net purchases of Japanese shares stood at 32.0 billion yen ($391 million) last week, down from a revised 46.6 billion yen the week before, government data showed on Thursday. Inpex Corp, Japan's biggest oil and gas developer, outperformed the market and gained 0.2 percent to 554,000 yen while Sumitomo Metal Mining added 0.2 per cent to 1,317 yen after commodities steadied following big gains on Wednesday.-Reuters
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President, Grossman discuss fence mending ways
Pak-US ties bust-up on Abbottabad raid US AfPak Special envoy calls on COAS Kayani ISLAMABAD: Pakistan Thursday raised the issue of its sovereignty violation in meeting with President Obama's special envoy for the region, Marc Grossman, and emphasized that it shall be respected. US special envoy Marc Grossman arrived here Wednesday night ahead of Secretary of State Hillary Clintons expected visit to the country and ISLAMABAD: Federal Minister for Overseas Pakistan Farooq Sattar addresses a press immediately after Senator John conference at National Press Club. -Online Kerry, who visit Islamabad to "reset" the strained ties between the two war allies. Grossman held meetings with State Minister for Foreign Affairs, Hina Rabbani Khar, Army Chief General Ashfaq Pervez Kayani and InterService Intelligence (ISI) Lt General Shuja Pasha. According to Sources, during the meetings host of issues like easing ISLAMABAD: The Ministry of Gwadar airport would cover area of Chairman Committee Javed Ashraf out tensions between Pakistan and US, Abbottabad operation and others Defence and Civil Aviation Authority 4,300 acre; however, only 70 per cent Qazi directed Additional Secretary (CAA) has decided to hire services of land could be acquired so far just Defense to finalise consultation with came under discussion. Military leadership was of clear-cut Frontier Constabulary for security of because of security issue. Balochistan Government.
CAA seeks FC cover for Gwadar Airport
new Gwadar International Airport to be built in next three years with total cost of Rs7.67 billion. The CAA has also made it clear that the construction of new Peshawar airport would not be completed even in upcoming five years if Rs9 billion were not released by Government. The high-level authorities of ministry of defence and CAA were giving briefing to Senate Standing Committee on Defense which met under the chairmanship of Committee Chairman Lt Gen (Retd) Javed Ashraf Qazi here on Thursday. The committee was informed that
The officials informed the committee that CAA is also trying its level best to settle dispute with land owners. CAA had to stop work many times of because of security reason in Gwadar. The committee was told that the Balochistan Government has also refused to lend security despite repeated request. Additional Secretary Defense Haider Ali Khan said that the services of FC would be hired to resume work to construct Gwadar airport and talks in this regard is underway with Chief Minister Balochistan because deployment of FC in Balochistan has become Political issue.
The committee was informed that only 27 per cent work has been completed so far. During last three years, Rs240 million were utilised but work to erect fence around the acquired land could not be completed. The meeting was also briefed about expansion of Peshawar airport. The committee was told that Rs. 9 billion is needed for expansion work of airport. Rs2.7 billion is needed to acquire land from Pakistan army, Rs290 million is needed to reconstruct Pakistan air force installation and Rs6 billion is needed for construction of new terminal building. -Online
China Mobile eyes Pakistan operations HONG KONG: China Mobile Ltd, the world's largest mobile operator by market value, is considering buying Pakistan operations from its parent, Chairman Wang Jianzhou said on Thursday. But there was no timeframe for the possible acquisition, Wang told reporters after a shareholders' meeting. See # 1 Page 11
stance that Abbottabad operation is the bone of contention between strained Pak-US relations. They said that US has to take gigantic steps to revive the relations following OBL killing. They opine that it is the need of the hour that both Pakistan and the Unites States must make concerted efforts to improve defence and military relations between the two countries. Marc Grossman said that the purpose of his visit is to increase anti-terrorism cooperation between two countries. Sources further emphasised that US envoy made no apology with the Pakistani military leadership regarding the Abbottabad operation. Sources told that the military leadership stressed on early repayment of coalition support fund. During the meeting restoration of ties between CIA and ISI were also discussed but no assurance was made
on the behalf of DG ISI and instead he expressed his severe reservations. Official sources said that State Minister Khar told the US envoy that Pakistan's sovereignty shall be respected. She mentioned sacrifices that Pakistan has made in fight against terrorism. Meanwhile, President Zardari met US Special representative for Afghanistan and Pakistan Ambassador Marc Grossman here at the Aiwan-e-Sadr. The meeting was the follow up of Senator John Kerry's meeting with the President on May 16 in which the two sides agreed to put the relations back on track and that the relations should go forward on the basis of mutual respect, mutual trust and mutual interest, a statement from the President House said. US Ambassador in Islamabad Cameron Munter was also present during the meeting besides other US officials. -Agencies
Power protests cause chaos Staff Reporter KARACHI: Due to the continuing electricity shortage in Karachi on Thursday, various protests were held in different parts of the city causing several traffic jams, media reported. Due to power outages in various areas of the city including MT Khan Road, Banaras Valika, Tariq Road, Lyari Expressway Ranchor Line and Sadar, protestors blocked several roads and demanded a solution to the crisis. It was also reported that numerous petrol pumps in the city were also closed down amid the chaos. KESC spokesmen said that the union members were forcefully stopping the KESC workers from continuing their work, however, the union denied this and said that KESC was blaming them to cover its own inefficiency and that they had not stopped anyone from doing their work.
MQM gears up for AJK elections ISLAMABAD: Deputy Convener, Rabita Committee of Muttahida Qaumi Movement (MQM) Dr Farooq Sattar Thursday announced that the MQM will fully participate in the upcoming elections of Azad Jammu and Kashmir (AJK) and field its candidates from all constituencies. Addressing a press conference here along with members of Rabita Committee, Dr Sattar said that the party has set up its election cell and started its election activities. He said the party will nominate only educated and sincere people for contesting the elections and announced party manifesto for the elections. He expressed the hope that people of AJK will cast their vote to MQM candidates. Giving details of party manifesto, Dr Farooq Sattar said that MQM will raise an effective voice for highlighting the Kashmir issue at international level. He said that steps will be taken to translate the slogan health for all into a reality, adding emergency funds will be allocated for the outbreak of
viral infections like influenza. He said trade of human organs will be banned and cadaver banks will be established for transplantation of human organs in a legal way. He said one hospital will be built in every district of AJK whereas a basic health centre will be built in every village. He said duel standard discriminatory education system will be abolished and standard of government schools will be brought at par with the private schools. He said salaries of teachers will be increased considerably each year and their salaries will be consistently increased in proportion to the rise in inflation. Dr Farooq Sattar said new schools; colleges and universities will be built in the remote areas of AJK besides cities and towns. He added education up to matriculation level will be made free and the government will provide free of cost books to the students. He said that the MQM will work for establishing small power projects on rivers and streams and encourage
the private sector to invest in the power sector. He added this will result in the availability of cheapest electricity to the people of AJK. He said durable roads will be built in AJK and emergency steps will be taken to deal with the problems like land-sliding. He added telecommunications system will be improved and telecommunication facilities will be enhanced even to the remote areas. He said that the MQM will pay due attention to the production sector so that goods of standard quality are produced locally while heavy industries will also be set up. Dr Farooq Sattar said that the MQM will also take steps for the welfare of women including 33% representation in the legislative assembly besides abolishing of discriminatory laws. He said that the MQM will work for the rehabilitation and settlement of the people displaced by the Mangla Dam raising project. He added the colonies of the affected people will be equipped with all the modern facilities. -APP
Japan vital uplift partner: BoI
Pak hails Japanese FDIs ISLAMABAD: The high-level exchanges created opportunities to open up avenues for greater cooperation between the private sectors of the country and Japan, in the fields of automobiles, electronics and tourism, said Secretary Board of Investment (BOI) Anis-ul Hassan Musavi while talking to a six-member delegation of Japan headed by Hiraoshitajima, Director Ministry of Foreign Affairs Japan which visited here the Board of Investment on Thursday. Secretary Board of Investment presided the meeting. At the beginning of the meeting, Secretary Board of Investment condoled the calamity of devastating earthquake in Japan. He said, "Japan has been a close friend and an important development partner throughout." At this moment of sorrow and grief, people of Pakistan are standing by the Japanese nation. I affirm the
support and solidarity of the kind, Japanese expressed on the catastrophes of earthquake and flood in Pakistan" Talking about the investment from Japan, Secretary Board of Investment said that the high-level exchanges created opportunities to open up avenues for greater cooperation between the private sectors of Pakistan and Japan, in the fields of automobiles, electronics and tourism. He further added that Japan's economic assistance has played a very important role in the development of Pakistan's economic and social infrastructure. The major projects, which have been funded by the Government of Japan, include the Indus Highway Project, a number of power projects in various provinces of Pakistan, Rural Roads Construction Project and the Children Hospital PIMS Islamabad Project.
Presently the Kohat Tunnel Project and the Ghazi Barotha Dam Project are being completed with the help of the Japanese assistance. He also appreciated the role of JICA assistance to train the employees of BoI to play a competitive role to facilitate the investors and to improve the efficiency of the organisation. Hiraoshitajima showed his concern about the security related issues of the investors in Pakistan. He said that bilateral relations between Pakistan and Japan are based on commonality of interests and aspiration for peace and development especially for our region, which Japan also regards as pivotal for peace and stability in Asia. Japan has been a close friend and an important development partner throughout. It was among the first countries to offer help in the aftermath of the devastating earthquake on October 8, 2005. -APP
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