thefinancialdaily-epaper-26-05-2011

International Karachi, Thursday, May 26, 2011, Jumadi-ul-Saani 22, Price Rs12 Pages 12

‘N’ for another joint session to discuss Khi episode $16.97bn 14.08% $20.15bn $32.26bn $(12.11)bn $748mn $9.05bn $1.53bn Rs 1012bn $59.54bn Rs 5463bn $649.9mn 6.75% 4.10% $1,051 176.13mn

Foreign Debt (Mar 11) Domestic Debt (Mar 10) Repatriated Profit (Jul- Apr 11) LSM Growth (Mar)

GDP Growth FY10E Per Capita Income FY10 Population

See page 12

Gates defends US aid for

See page 12

India raises red flag on Pak nuke

See page 12

PM chairs Cabinet Defence Committee meet

Economic Indicators 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)

No time to abandon Pakistan, Cameron

Gilani vows to dig deeper into Naval Base hit

Portfolio Investment SCRA(U.S $ in million)

246.05 Yearly(Jul, 2010 up to 24-May-2011) Monthly(May, 2011 up to 24-May-2011) 20.47 -8.79 Daily (24-May-2011) 2776 Total Portfolio Invest (14-May-2011)

PNS Mehran commander Raja Tahir removed Staff Reporter/ Agencies

NCCPL (U.S $ in million)

FIPI (25-May-2011) Local Companies (25-May-2011) Banks / DFI (25-May-2011) Mutual Funds (2-May-2011) NBFC (25-May-2011) Local Investors (25-May-2011) Other Organization (25-May-2011)

-0.78 1.03 -1.52 0.14 -0.12 0.86 0.39

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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 20-May-2011 25-May-2011 25-May-2011 25-May-2011 25-May-2011 25-May-2011 25-May-2011 25-May-2011 25-May-2011 25-May-2011 25-May-2011 25-May-2011

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Commodities *Crude Oil (brent)$/bbl 113.87 *Crude Oil (WTI)$/bbl 99.96 *Cotton $/lb 157.98 *Gold $/ozs 1,527.30 *Silver $/ozs 37.40 Malaysian Palm $ 1,104 GOLD (NCEL) PKR 42,230 KHI Cotton 40Kg PKR 9,109 Open Mkt Currency Rates Symbols Buy (Rs) Sell (Rs)

Australian $ 89.20 Canadian $ 89.40 Danish Krone 16.20 Euro 120.40 Hong Kong $ 10.80 Japanese Yen 1.028 Saudi Riyal 22.77 Singapore $ 68.10 Swedish Korona 13.30 Swiss Franc 95.90 U.A.E Dirham 22.77 UK Pound 138.40 US $ 85.70

90.20 90.40 16.50 121.70 11.15 1.054 23.05 69.10 13.60 96.90 23.05 140.20 86.15

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

Buying

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TT Clean

TT & OD

89.57 87.11 16.08 119.89 10.97 1.041 22.75 68.30 13.40 96.95 23.22 137.96 85.55

89.78 87.31 16.12 120.17 10.99 1.044 22.80 68.46 13.43 97.18 23.28 138.28 85.74

ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani chairing the DCC meeting at PM house. -APP

Nepra raises tariff

by Rs1.07 per unit ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has allowed power distribution companies to raise the electricity tariff by Rs1.07 per unit, under the monthly fuel price adjustment formula.

At the hearing, Nepra officials examined figures provided by power distribution companies, who had sought an increase of Rs1.07 per unit as part of fuel adjustment for April.

Nepra was informed that 43 per cent electricity was generated from furnace oil in month of March and increase in furnace oil Prices had an adverse

impact on the cost of power generation.

The Nepra after hearing the arguments of power distribution companies allowed them to increase electricity tariff by Rs1.07.

New tariff will not apply to Karachi Electricity Supply Company (KESC).

Lifeline consumers and those who are consuming electricity up to 50 units would be exempted from recent increase in power tariff.

The increase in Power tariff would be included in bill to be dispatched to electricity consumers for month of April. Online

B'stan govt told to dispose TTC plea

SC vacates stay on Rekodiq lease ISLAMABAD: The Supreme Court of Pakistan on Wednesday vacated a stay on award of mining lease for exploring gold and copper deposits worth billions of rupees of Rekodiq in Chaghi District of Balochistan.

The three-member bench of Chief Justice Iftikhar Muhammad Chaudhry, Justice Muhammad Sair Ali and Justice Ghulam Rabbani dictated an order with the consent of parties, directing the Balochistan government to expeditiously dispose of the pending plea of Tethyan Copper Company (TCC) seek-

ing renewal of lease agreement strictly in accordance with Balochistan Mining Rules 2002 and without being influenced by the court proceedings.

It said that the petitions over the issue would remain pending till final decision by the competent authority.

At the outset of proceedings, Advocate General Balochistan Amanullah Kinrani apprised the bench that the provincial government would have no objection if the Court gave any ruling.

Raza Kazim, counsel for Maulana Abdul Haq Baloch, a See # 10 Page 11

Refinance facilities for nonfarm sector KARACHI: The State Bank of Pakistan has expanded the scope and extended the validity of the Refinance Scheme for Revival of SMEs & Agricultural Activities in Flood Affected Areas of the country.

This has been done with a view to improving access to finance for Small & Medium Enterprises (SMEs) and farmers in the flood affected areas.

The Scheme will now also provide financing to the nonfarm sector, said IH &SMEFD Circular No. 04 of May 25,

2011.

Earlier, the financing under the Scheme was allowed to farm sector only.

Likewise, SBP has also allowed banks/DFIs to repay the principal amount of refinance within 15 days of the due date(s), instead of 7 days as allowed earlier under the Scheme, the circular said and added that the validity of the Scheme has been extended up to November 30, 2012.

Earlier, the validity of the See # 11 Page 11

Bomb hits police station, 6 killed PESHAWAR: A suicide bomber drove an explosives-packed car into a police station on Wednesday as the Taliban intensified attacks against Pakistan's security forces after the killing of al Qaeda leader Osama bin Laden.

At least five policemen and a soldier were killed in the attack in the northwestern city of Peshawar. The Pakistani Taliban said they were responsible.

The militants, allied with al Qaeda, have vowed to avenge bin Laden's killing by US forces in Pakistani town on May 2.

"We will continue attacks on security forces until an Islamic system is implemented in Pakistan, because the Pakistani system is un-Islamic," Ehsanhullah Ehsan, a spokesman for the Pakistan Taliban, told Reuters, adding the attack was also in revenge for bin Laden's death.

The police station, in a military neighborhood, houses an office of the Criminal Investigation Department, which is responsible for investigating Islamist militants.

There is also a training facility for Special Forces and officers' See # 9 Page 11

Local terrorist Pak's real threat: US WASHINGTON: US Senator John Kerry has said that the home grown terrorists are the real threat to Pakistan.

Addressing the US Senate Foreign Relations Committee Kerry said that Pakistan needs to realize that it is facing threat from home grown terrorists not from countries along the western, eastern borders or European countries. He said that through affective diplomacy Pakistani military leadership would be convinced to realize this threat.

He said that the killing of Osama Bin Laden paved the way for major achievement against the Taliban in Afghanistan.

Kerry further added that Afghanistan war is in critical See # 8 Page 11

ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani Wednesday chaired a meeting of Defence Committee of Cabinet (DCC) which was also attended by chiefs of the three armed forces and Chairman Joint Chiefs of Staff Committee, media reported.

According to sources, the meeting reviewed the security situation of the country besides various options in connection with undertaking comprehensive investigation into the PNS Mehran infiltration.

The overall situation emerged in the wake of US unilateral assault in Abbottabad and breach of PNS Mehran was also discussed in the meeting.

Furthermore, after assault by terrorists, Commander of

Mehran Base in Karachi Raja Tahir has been removed and Commander Khalid Pervez has been appointed in his place.

However according to Spokesman of Pakistan Navy Commander Salman Ali the decision to appoint Khalid Pervez was made four months back and it has nothing to do with PNS Mehran attack. He said that transfers and postings are routine.

Raja Tahir has been asked to report to Naval Headquarter regarding his new responsibilities.

However, according to military sources Raja Tahir would remain suspended until the completion of PNS Naval attack report.

According to initial investigation into the PNS attack six terrorists in two groups entered

Free mkts must for economy: PC ISLAMABAD: Competitive markets are the starting point towards increasing efficiency and sustaining economic growth, according to `Pakistan: Framework for Economic Growth,' strategy prepared by the Planning Commission.

"Free and flexible markets allow businesses, which have run the course, to exit and be replaced by more efficient firms," the strategy says.

Instead of providing fiscal incentives based on sector-specific bases, markets must be allowed to determine the optimal allocation of resources, it says adding incentives should be formulated to cultivate innovation and entrepreneurship.

According to the strategy, innovative practices could come about in the public and

private sectors as well as in rural and urban areas.

It says that role of private sector needs to be enhanced and doing business should be the job of this sector adding the role of public sector should be as a regulator.

"The private sector could only operate freely once the government exits from the market and concentrates on its role as a regulator and facilitator," it says adding currently, the government's was having presence even in relatively small sectors of economy such as transport and storage.

The growth strategy stresses the immediate need to address missing and incomplete markets and indicates many initiatives that could be taken in this See # 7 Page 11

New gas price for next fiscal Oked Special Correspondent ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) has permitted the natural gas distribution companies including Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) to increase the price of natural gas for the next financial year, i.e. 2011-12.

The source in OGRA told Online that the SNGPL has been allowed to increase the gas price by Rs 7.54 per MMBTU whereas the SSGCL can increase the price of natural gas

by Rs 5.08 per MMBTU in the

next financial year. The new price of the gas would be implemented from 1st July this year.

Both the companies had filed their appeals to OGRA for fixing new price of natural gas for the next financial year in which they took plea that due to increase in price of crude oil and High Sulphur Fuel Oil (HSFO), the exploration cost of natural gas has been increased so it would directly impact on the distribution of the gas.

Three -member committee heard the arguments form the both gas distribution companies in favour of increase in gas price.

the PNS Mehran Base from the PAF jurisdiction. The six terrorists were wearing suicide jackets and had a large number of ammunition with them.

Meanwhile four navy personnel currently in Adiala prison were court-martialled for aiding and abetting in suicide attacks and they are also being interrogated, None of them had ever been posted to PNS Mehran Base.

Earlier, in Karachi after inquiring the health of PML-F head Pir Pagara PM Gilani while talking to the journalists said that after the completion of the PNS Mehran fiasco attack investigation report, Nation will be taken on board about the actual facts.

Prime Minister Gilani opine See # 16 Page 11

Govt turns SECP into ineffectual body ISLAMABAD: The federal government has failed to fulfill statuary requirements for Security and Exchange Commission of Pakistan (SECP) for the last four years incurring losses to the commission.

Sources told Online on Wednesday that there are only one commissioner and one chairman in whole set up of the SECP, while the SECPAct clearly states that there must be at least five and maximum seven commissioners for various areas that require technical know-how of the field.

According to sources, one existing commissioner in SECP supervises only registration and enforcement divisions. And other important divisions like laws, security and market division and See # 6 Page 11

Taliban enemies of Pakistan: Obama LONDON: In a news conference with President Barack Obama, Cameron said that allies must work with Pakistan more closely than ever, not turn away. He said Pakistan has suffered mightily in the fight against extremism.

He said the Taliban should separate themselves from the al-Qaeda.He said that the allies supported Afghan President Hamid Karzai’s efforts towards peace process in the country.

NNI

2

Thursday, May 26, 2011

PEW suggests new, improved tax model BENAZIR ABAD: Funeral prayers of elderly stateman Hakim Ali Zardari being offered at Benazirabad. President Zardari is also seen in the picture.-APP

Cellular int'l traffic reaches record high ISLAMABAD: The cellular international traffic of Pakistan has reached a record high with 3.4 billion minutes registered during first six months of current fiscal year, showing 22 % increase as compared to previous year.

The last two quarters of previous financial year recorded with 2.8 billion minutes which shows increasing trend, thereby establishing the fact that mobile usage is increasingly becoming the preferred medium of communication for inbound and outbound calls to Pakistan.

As per an overview given in Pakistan Te l e c o m m u n i c a t i o n Communication (PTA)'s quarterly report, total outgoing traffic trend as depicted by figure revealed the steadily growing trend of making calls from Pakistan to other destina-

tions around the world as 0.96 billion international outgoing minutes have been recorded during the first two quarters of 201011 as compared to 0.93 billion minutes in the last two quarters of previous year.

Similarly, international incoming traffic has also been growing continuously for the last two quarters and reached 2.5 billion minutes as compared to 1.9 billion minutes during previous two quarters.

With regard to Short Messaging Service (SMS), which is one of the important features of cellular mobile services and a vital source of revenue for cellular companies, the report said all cellular companies generated approximately 100 billion SMS during Jul-Dec 2010-11 as compared to 86 billion during the preceding two quarters.

This shows a 16% increase in the SMS traffic in just two quarters.

Ufone leads the SMS traffic parameters by a clear margin followed by Telenor and Mobilink. Warid and Zong have significantly low SMS traffic as compared to their competitors.

A telecom expert on Wednesday attributed the increase in traffic to the low international tariffs and bundled international packages being offered by cellular mobile companies while huge rise in the SMS traffic owes largely to the attractive and wide range of bundle packages being offered by all the operators.

He said daily, weekly, fortnightly, monthly even unlimited packages are being offered at very low rates to cap the true potential of this value added service.-APP

Mehran attack

Sharmila pays tributes to martyrs KARACHI: Pakistan Peoples' Party (PPP) Sindh Women Wing Information Secretary Sharmila Farooqi paid a glowing tribute to the martyrs of Pakistani Navy and Rangers who sacrificed their lives while fighting terrorists during an attack on PNS Mehran in Karachi.

She also demanded bestowing of highest military award of Pakistan, Nishan-e-Haider, to lieutenant Yasir Abbas who laid down his life in the gun-battle and saved precious assets of the country.

"We are proud of lieutenant Yasir Abbas who headed a Navy rapid force, fought with great valour and sacrificed his life for saving precious defence assets of the country. The courage and sacrifice shown by him will never be forgotten. We stand united with the families of those whose loved ones lost lives in the attack," she said in a statement issued here on

Wednesday.

Sharmila said that Lieutenant Yasir and other security personnel defended the country's sovereignty and its people by sacrificing their lives. "It was a courageous and bold action that let whole nation to be proud in the world.

The supreme sacrifices by these martyrs will set one of the most glorious chapters in the annals of national history and encourage others to adopt commitment to fight for the cause of the country," Sharmila said.

She asked the officers and soldiers of all armed forces of the country to follow the footsteps of their valiant predecessors and spare no effort to secure defence of the country.

"Our army is fully capable to encounter any attack with big blow and get success. The armed forces of Pakistan are known as brave worldwide, so there is need to encourage them.

The officers and personnel of our armed forces are committed to protect the lives of people and assets of the country at all costs," she observed.

Sharmila said the nation should encourage the fighting spirit and commitment of Pakistan's armed forces as the country was facing various internal and external threats to its people and assets due to the war on global terrorism. We are proud that the armed forces of Pakistan have always been bold and brave in every fight for defence of the national frontiers and integrity, she added.

Sharmila said that the present government under the dynamic leadership of President Asif Ali Zardari was striving hard along with the armed forces to save the country from internal and external threats. It is also taking all political forces on board to save national interests, she concluded.-NNI

CDGK to resume work on Lyari Expressway

KARACHI: Prime Minister Syed Yusuf Raza Gilani shaking hands with Pir Pagara at The Aga Khan Hospital.-APP

Withdrawal of sales tax exemption slated Staff Reporter KARACHI: Asad Nisar Barkhurdaria, Senior Vice Chairman, SITE Association of Industry has condemned the move of FBR of amending the SRO 575(I)/2006 through SRO 448(I)/2011 and withdrawing sales tax exemption on import of machinery, equipment and other related equipment as capital goods imported by com-

KARACHI: The news that 17 pc Sales Tax on supplies to unregistered sectors on the cards is like thunderbolt for the five zero rated sectors, said Council of All Pakistan Textile Associations (CAPTA).

M. Jawed Bilwqni, Spokesman and Coordinator, CAPTA expressed surprise that the Government had taken all the stakeholders on board and solemnly promised that Zero Rating for the five zero rated sectors would continue for a period of three years which had created a confidence in the representatives of the five zero rated sectors but the sudden news of expected abolishment of the reduced rate 4-6% Sates Tax on the local supplies made to the unregistered persons of five zero rated sectors for restoration of standard rate of 17% of sales tax on the these sector from 2011-12 has shocked the textile industry which is the backbone of nation's economy, he said.-PR

Farrukh resigns from BMA Capital KARACHI: Chairman of the Board of Directors of BMA Capital Management Limited, Mustafa AbdelWadood, on behalf of the Company, Wenesday announced the resignation of Farrukh Hussain Khan from all posts at BMA Capital, including his roles as Executive Vice Chairman and a Member of the Board of Directors.

According to a press release issued here on Wednesday, the BMA Capital is one of the leading financial services firms in Pakistan.

Farrukh Khan was one of the founders of BMA Capital in 1992 and was an instrumental part of the Company's development in its early years.-NNI

Plea to allocate budget for PaCCS

TFD Report KARACHI: City District Government Karachi (CDGK) Desires that the stalled work on the Lyari Expressway project be resumed at the earliest.

This was stated by the District Executive Officer (EDO) of the CDGK, Muhammad Hussain Syed, on Wednesday.

CAPTA's concern over proposed ST on zero rated sectors

mercial and industrial units under customs SRO 575(I)/2006.

Asad Nisar said that this facility was given under SRO 575(I)/2006 on the import of machinery, equipment and other related equipment which were not being manufactured locally and were required for replacement and expansion purpose etc. and it will raise the cost by 17%

This facility has been withdrawn vide SRO 448(I)/2011 and the Custom authorities now will also collect 17% sale tax on the imported machinery etc. which are not being manufactured locally which in clear words is discouragement for the local industries and it would affect the industrialization in the country, he added.

KARACHI: The President of PaCCS User Club (PUC) Rizwan Khadim Rathore along with club members urged FBR to allocate budget for the purchase of Pakistan Automated Customs Computerized System (PaCCS) to finalize the deal as soon as possible. It is worth mentioning here that FBR all set to hire officials of high competency and good character to run PaCCS. The negotiations between FBR and Agility are at final stage; all the matters have been discussed in detail including purchase of the system. It was finally decided that FBR will purchase the system from Agility to make it more productive and useful solution to generate more revenues for the national exchequer.-PR

ISLAMABAD: The Pakistan Economy Watch (PEW) on Wednesday suggested an improved tax model that can generate adequate resources for the government without hampering economic growth and provide economic justice.

The new model can help transfer resources to public use in an efficient manner ensuring social justice for weaker sections of the society, it said.

Majority of budget proposals have no significant impact on economic growth as policymakers ignore it, said Dr. Murtaza Mughal, President, PEW adding that it is a useless exercise as unfair tax regulations continue to hurt the growth.

Talking to Chairman

Coordination FPCCI, Raza Khan, former president ICCI Nasir Khan, former president RCCI Hussain Osgzan and other business leaders, he said that over-taxing the economy while avoiding taxing favourite sectors is putting the economic and revenue system down.

Avoiding concerns of genuine taxpayers and emphasis on meeting revenue targets without considering its impact on the economy is a self-defeating exercise carried out in a mechanical way, he added.

Dr. Murtaza Mughal said that concentration on industrial expansion can provide much-needed funds without hurting the honest taxpayers which is yet to be realised.

Tax system needs to be transformed in an equitable, realistic, investment-oriented and business-friendly arrangement, he stressed.

For this, he said, issues like amnesty schemes favouring tax evaders, alliance between the evaders and officials, steps supporting parallel economy, unprecedented exemptions, avoiding taxing speculative transactions, ignoring abusive tactics of multinational companies and oversized state machinery needs to be resolved.

Keeping public representatives away from whole process, reliance on the foreign experts, lack of meaningful interaction with the taxpayers, and facilitating monopolies

are also matters of great concern, he said.

On the occasion, Raza Khan said that tax burden on the poor is gradually increasing; poor pay over 20 per cent of their income as indirect taxes while rich pay less than 10 per cent of their income as indirect taxes which will lead us nowhere.

He said that a paradigm shift is needed to ensure enhanced revenue generation as the real potential of taxes is not 1600-1700 billion rupees but four trillion rupees.

Industrial growth can be triggered if investors are not asked for source of funds. This will also help contain flight of capital and overseas investments that are hurting economy, said Raza Khan.-Online

Khushhalibank, among major MFBs of Asia Pacific KARACHI: The Micro Credit Summit Campaign (MSC) in its annual report 2011 ranked Khushhalibank, a premier Pakistani microfinance organization, as one of the biggest microfinance entities of the Asia Pacific region currently served two and a half million relationships and over four hundred thousand active clients.

The MSC launched a status report to map the differences in the landscape for microfinance globally, that addresses the latest issues faced by the industry and the micro credit facilities on offer throughout the region.

The report also shares details on a new initiative

by MSC which is designed to recognize institutions

from the globe that are committed to the economic uplifting of the people.

"The ranking of Khushhalibank amongst the biggest microfinance organizations in the region reflects our firm resolve and sheer commitment to empower the people of Pakistan", Ghalib Nishtar, President, Khushhalibank, said while commenting on the announcement and added that access to credit for self-employment and other financial and business services must be given to the poor families of Pakistan. These facilities will help them overcome the harsh realities and cruelties of extreme poverty.

According to the report, more than 128 million of the world's poorest families received micro loans in

2009 which is an all-time high.

The Microcredit Summit Campaign Report is the largest and most comprehensive annual report on the outreach of microfinance to the poor and very poor.

The report holds great significance from the Pakistani perspective as well since there are currently over 2.0 million active microfinance borrowers.

The 2011 report also analyses the progress of the Microcredit Summit Campaign and the global microfinance industry over the past year. The preparation of this report involved the interview scores of industry leaders from the microfinance industry, capturing their thoughts on the

issues facing the microfinance sector.

The report emphasizes upon the microfinance community to develop a solid technique to identify organizations that demonstrate extra ordinary success in achieving the transformational dimension of microfinance by helping poor people to come out of abject poverty.

The Microcredit Summit Campaign has taken on this challenging task by shepherding a consultative process on creating a Seal of Excellence for microfinance.

The Campaign's greatest challenge is bridging the gap between its commitment to reaching the poorest population and the lack of effective poverty measurement tools.-APP

Amir likely to rejoin MQM

ISLAMABAD: The Ambassador of Brazil Alfredo Cesar Martinho Leoni called on Minister of State for Foreign Affairs, Hina Rabbani Khar in on Wednesday. -APP

KARACHI: Recently released Mohajir Qaumi Movement (MQMHaqiqi)Chairman Amir Khan Wednesday announced to abolish his faction. Sources said he is likely to rejoin Muttahida Qaumi Movement (MQM).

Amir Khan was released from jail on May 23, 2011.

He was arrested in May 2003, and shifted to Central Jail Karachi.-INP

3

Thursday, May 26, 2011

Euro struggles, Greek debt uncertainty weighs

Euro falls broadly on Greece fears; franc at record Analysts see euro breaking below $1.40 in near term NEW YORK: The euro fell to a record low against the Swiss franc and weakened against the dollar on Wednesday on uncertainty over Greece's debt crisis that could keep the single currency under heavy pressure in the near term.

Analysts expect the euro to fall below key support around $1.40 in the next days. That would open the door to further selling toward $1.35, unless policymakers can come up with credible solutions to soothe investors' fears about any potential restructuring of Greek debt.

Investors expect Athens, which is digging its way out of massive debts, to have a hard time implementing more austerity measures as the government's main opposition party opposes such a move.

"The euro felt the full weight of investors' fears and made a beeline for the nearest big-figure," said Andrew Wilkinson, senior market analyst at Interactive Brokers in Greenwich, Connecticut.

"The lack of any prospect for resolving the sovereign debt issue is likely to keep the euro under severe near-term pressure."

Greece's prime minister called again for consensus at a

meeting with the country's president on Wednesday.

Athens wants to secure continued funding under a 110 billion euro ($155 billion) bailout while paymasters at the European Union press for wider political support before they agree on further loans to

plug a funding gap next year.

A government spokesman said Greece has no immediate plans to hold a referendum on austerity measures, quashing earlier speculation of a possible vote. The euro fell to a session low of $1.4011 on trading platform EBS, not far from a twomonth low of $1.3968 set on Monday. It last traded down 0.4 percent at $1.4044. The single currency pared some losses after Finland approved an EU/IMF bailout for Portugal, while demand from hedge funds also prompted a squeeze in euro shorts positions.

Offers

from sovereign investors could start appearing around $1.4100, which will limit euro gains. Further resistance is seen around $1.4195, traders said.

Against the Swiss franc, the euro fell to a low of 1.2298 francs EURCHF=EBS

on EBS, the weakest since the single currency was launched in 1999. It last traded at 1.2309, down 0.8 percent on the day.

EURO DOWNSIDE Citigroup said in a note that its index on hedge fund positioning showed these investors had unwound long bets on the euro in the past few weeks but they were still in 'overextended territory', implying further losses for the euro.

"Everyone thinks the euro will go down, so it has become more sensitive to bad news from the euro zone," said Adam Myers, currency

Euro hits 2-mth low vs GBP, record low vs Swiss franc PARIS: The euro fell to a twomonth low versus sterling on Wednesday as traders reported system-driven accounts selling the single currency, which was hampered by uncertainty over the euro zone's debt crisis.

The euro fell to 86.56 pence its lowest since March 23.

The euro fell broadly, hitting a record low against the Swiss franc of 1.2307 francs also reversing a slight upmove against the dollar. -Reuters The euro traded 0.2 percent lower on the day at $1.4074, pulling back from $1.4092 hit after the Finland news. Traders had said demand from macro funds and other fund managers had also pushed the euro up, adding that gains accelerated after stop-loss orders were triggered above $1.4060.

Though Finland's approval removed one uncertainty in the euro zone debt crisis, analysts said underlying sentiment towards the euro was bearish as differences between the European Central Bank and region's politicians grew on whether Greek debt should be restructured or not.

"The Finland news is providing some relief to the euro, but the euro needs a far bigger catalyst to see it move towards $1.43," said Audrey ChildeFreeman, EMEA head of currency strategy at JPMorgan Private Bank.

"In the near term, the euro is very much skewed towards the downside and looks very choppy."

Traders citied offers from sovereign investors above $1.4100, which were also seen limit any upside in the euro.

EUR/CHF SUFFERS The single currency traded 0.6 percent lower at 1.2325 francs by 1124 GMT, trimming some losses, but analysts see more gains in the Swiss franc, which is a popular investment choice during times of uncertainty.

The dollar rose 0.1 percent against a basket of currencies to 75.983, not far from a high of 76.366 hit earlier this week, its highest since April 1. It rose slightly versus the yen to 82.04 yen.

The Australian dollar was down 0.6 percent at $1.0494,

having fallen as low as $1.0440 after news that GE Capital was selling its Australian mortgage book stoked speculation that more investors could dump Australian assets.

Market participants said sovereign-related demand from the Mideast helped the Aussie to pare early losses.

For the moment, the euro is drawing support against the dollar at the bottom of a cloud on the daily Ichimoku chart, a Japanese technical analysis tool popular among traders, and the euro's 100-day moving average, both of which are nestled near $1.3985.

A fall below this could open the way for more losses especially since stop-loss orders are said to be lurking below $1.3968, a two-month low struck on EBS on Monday.

Citi said in a note that its index on hedge fund positioning showed these investors had unwound long bets on the euro in the past few weeks but they were still in 'overextended territory', implying further losses for the euro. -Reuters

UK growth sluggish; smaller trade deficit helps pound

Sterling at 2-month high vs euro, outpaces dollar LONDON: Sterling rose to a two-month high against a heavy euro on Wednesday, as fresh uncertainty over Greece hit the single currency and a break of a key technical level encouraged investors to scoop up the pound.

The euro fell to 86.35 pence its lowest level since March 15, breaking below its 100-day moving average at 86.47, as computer-generated trading accounts threw out sell signals.

The euro suffered broadly, pressured by Greek newspaper reports that the Greek government is considering organising a referendum on additional austerity measures after it failed to reach consensus with the opposition, casting further doubt on the country's ability to tackle its debt crisis.

"As a European alternative the pound looks good value right now," said Kathleen Brooks, Research Director at

FOREX.com.

"This is likely to support the pound for the medium-term while sovereign fears in Europe persist," she added.

Technical analysts said the break below the 100-day moving average had opened up the possibility for a move towards four-year uptrend support around 84.50. A daily close

under the 100-day would strengthen the downside bias.

Sterling was also buoyed against the dollar moving back above $1.6200 to trade with gains of around 0.4 percent at $1.6240. Traders said sovereign accounts had been persistent buyers of sterling throughout the day.

SLUGGISH UK GROWTH The pound's rise came in spite of data confirming Britain's economy made a

sluggish start to the year as household spending saw its sharpest quarterly fall in almost two years reinforced the view that UK interest rates were unlikely to rise soon.

"We believe these figures reinforce our view that the majority of the Monetary Policy Committee will continue to vote for no change in interest rates this year," said Hethal Metha, economist at Daiwa Capital Markets.

M a r k e t s expect the MPC to hold off from raising interest rates until the start of 2012 despite rising inflation, as an uncertain outlook for the economy and fiscal austerity measures continue to weigh on growth prospects. BOEWATCH Dealers said a reduction in Britain's trade deficit, which decreased to 5.7 billion pounds in the first quarter from 11.5 billion at the end of 2010, had been taken as positive in the near-term. -Reuters

strategist at Credit Agricole CIB. On the downside, strong support lies around the psychologically important level of $1.4000, which also marks the 200-week moving average. Analysts said the euro could break that level later this week, when interest to defend options around that region evaporates.

Below that, the euro/dollar could find support near $1.3985, the 100-day moving average, before sliding towards the $1.3770 area, the 38.2 percent Fibonacci retracement of the euro's rise from June 2010 to May 2011.

The dollar rose 0.2 percent against a basket of currencies to 76.025 .DXY, not far from a high of 76.366 hit earlier this week, its highest since April 1. It rose 0.1 percent to 81.99 yen.

The dollar had a limited reaction to data showing New orders for long-lasting U.S. manufactured goods recorded their largest decline in six months in April. The Australian dollar fell as low as $1.0440 after news that GE Capital was selling its Australian mortgage book stoked fears that more investors could dump Australian assets. -Reuters

Debt Concerns Pound Euro To Record Low Vs CHF LONDON: The euro suffered broadly on Wednesday, plumbing a record low versus the Swiss franc as Greece's struggle for political consensus to salvage its finances underlined the possibility that the euro zone debt crisis will knock the single currency lower.

Finland's approval of an EU/IMF bailout for Portugal helped the euro to pare some losses versus the dollar, but did little to stop the euro from falling to 1.2298 francs, the weakest since the single currency was launched in 1999.

Demand from hedge funds also prompted a short squeeze in the single currency versus the dollar, but analysts say the euro is tainted by ongoing uncertainty surrounding the euro zone debt crisis, and that a fall below $1.40 is imminent.

Investors expect Athens, which is digging its way out of massive debts, will have a hard time implementing more austerity measures as the government's main opposition party opposes such a move.

A government spokesman said Greece has no immediate plans to hold a referendum on austerity measures, quashing earlier speculation of a possible vote.

"The differences between Greek political parties is undoubtedly negative for the euro," said Adam Myers, currency strategist at Credit Agricole CIB, adding that the brief squeeze up in the euro did little to change its downward trend.

"Everyone thinks the euro will go down, so it has become more sensitive to bad news from the euro zone," he said, adding that the euro will break below $1.40 later this week, when interest to defend options around that region evaporates. -Reuters

LAUSANNE: An employee handing 100 Swiss Franc notes in the treatment centre of the Canton of Vaud Bank near Lausanne. Reuters

C.bank sets mid-point only a pip away from record high

Yuan ends up vs dlr after PBOC sets mid-point near record high SHANGHAI: The yuan rose against the dollar on Wednesday after the People's Bank of China set the midpoint only a pip away from a record high, reflecting its intention to start a new round of appreciation, traders said.

The central bank set the daily yuan mid-point at 6.4949, just off the fixing's record high of 6.4948 set on May 11 and higher than Tuesday's 6.5038, although the dollar index hovered around a near-eight-week high.

Traders said Wednesday's fixing indicated the central bank's intention to let the yuan rise in the near term amid ris-

ing inflation pressures.

"It seems the latest round of correction has finished, and the yuan will rise over the next few days," said a dealer at a Chinese commercial bank in Shanghai.

Spot yuan closed at 6.4934 versus the dollar compared with Tuesday's 6.4975. The currency has now appreciated 5.12 percent since it was depegged from the dollar in June 2010, and 1.48 percent since the start of this year.

The yuan traded as high as 6.4892 on April 29.

The official Shanghai Securities Journal cited several brokers as saying that domestic inflation is expected

to peak in May or June due to a pick-up in pork and vegetable prices.

"It's within our expectation (that the yuan will gain), but the central bank will control the speed of the rise," the Shenzhen bank trader said. "It may still rise for a while, then consolidate."

A stronger yuan would help offset imported inflation.

Offshore, one-year nondeliverable forwards (NDFs) were bid at 6.3850, down slightly from 6.3720 at Tuesday's close. Their implied yuan appreciation in a year's time was 1.72 percent versus 1.92 percent previously. Reuters

Indian Rupee nears 3-mth low MUMBAI: The rupee fell further in afternoon trades on Wednesday to hover near its three-month lows as concerns of dollar outflows heightened on the back of the continuing fall in local shares.

The persistent weakness in the common European unit also weighed on the rupee, traders said. At 1:45 p.m., the partially convertible rupee was at 45.41/42 per dollar, weaker than the last close of

45.21/22. The rupee had last crossed the 45.43 level on Feb. 25, and if it breaches this level, it could drop to near 45.50 before any support is seen, traders said. The euro was at $1.4026 and the index of the dollar against six major currencies was at 76.227 points. The euro fell on Wednesday, as investors including hedge funds cut bullish bets on mounting worries over Greece's finances,

C$ drawn lower by euro zone worries TORONTO: Canada's dollar was softer against the U.S. currency on Wednesday morning, drawn lower again by persistent worries about the euro zone's spreading debt crisis.

The pressure stemming from the euro zone worries has also prompted market players to reassess when the Bank of Canada might raise interest rates again.

As well, recent disappointing economic data and dovish comments from Bank of Canada Governor Mark Carney have helped to cool rate hike expectations.

The Canadian dollar slipped as low as C$0.9817 to the U.S. dollar, or $1.0186, its lowest since March 28.

By pushing and weakening through C$0.9760 to the U.S. dollar, or $1.0246, this week, the currency may be poised for further weakness.

"It's sustainably through the 100-day moving average, an important technical pivot point," said Jack Spitz, managing director of foreign exchange at National Bank Financial. "Canada will take its cue from global macro factors in keeping with the way its been for the past number of sessions."

He said he was eying the C$0.9830 and C$0.9850 levels, which could eventually set up the Canadian dollar for

run towards parity.

The Canadian dollar has held above parity since early February.

At 8:50 a.m. (1250 GMT), the Canadian dollar was at C$0.9786 to the U.S. dollar, or $1.0219, down from C$0.9761 to the U.S. dollar, or $1.0245, at Tuesday's close.

The revised market expectations on the central bank pushed up bond prices steeply in the last few sessions, and most issues pared some of those recent gains on Wednesday.

The central bank has left its benchmark rate unchanged at 1 percent since September. Almost no one expects the central bank to hike rates at its next policy setting on May 31, as measured by overnight index swaps, but market players have recently scaled back their bets on rate hikes at every Bank of Canada announcement date from July to December. Canada's twoyear bond was off 11 Canadian cents to yield 1.606 percent, while the 10-year bond decreased 7 Canadian cents to yield 3.118 percent.

The three-year bond was up 4 Canadian cents to yield 2.432 percent ahead of an auction C$3 billion in threeyear bonds later in the session. -Reuters

with many traders expecting the single currency to test key support levels on charts.

The BSE Sensex extended losses to more than 1 percent in afternoon trades on Wednesday as fresh worries about Europe's spreading debt crisis and weak Asian markets dampened investor sentiment.

The actively traded one-year onshore forward premium was 247.75 points against 248.25 points last close. -Reuters

S.Africa's rand hits near 10-week low vs dollar JOHANNESBURG: South Africa's rand fell to near 10week lows against the dollar on Wednesday after piercing through key technical levels, prompting a sell-off by exporters.

Poor sentiment towards risky assets also weighed on the local currency as worries about the debt crisis in the euro zone persisted.

The rand was trading at 7.0530 to the dollar at 1256 GMT, 1.05 percent weaker than Tuesday's New York close of 6.9820. It hit 7.0732 earlier, its weakest level since March 18.

"We are seeing a bit of dollar buying from locals. It couldn't dip below 6.98 overnight so it's having a bad day today," said Jim Bryson, a dealer at Rand Merchant Bank.

"There's also a bit of nervousness in the market about the Greece situation and it has taken risk off the table."

The rand was the worst performer against the dollar among 20 emerging market currencies monitored by Reuters.

Charts suggest the rand is on a weakening trend after piercing its 200-day moving average on Friday. If it breaks 7.05 decisively then it could target the March low of 7.2150.

Against the euro, the rand hit a two-week low of 9.9523.

Bonds also weakened, with the yield on the 2015 bond up 2.5 basis points to 7.575 percent and that on the 2026 bond up 6.5 basis points to 8.57 percent. -Reuters

4

Thursday, May 26, 2011

The Financial Daily International Vol 4, Issue 199

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

Banks not likely to meet agri credit target The State Bank of Pakistan (SBP) had fixed an indicative target of disbursement of Rs270 million for the agriculture loans, which seems highly unlikely to achieve. The latest statistics available with the central bank shows that in absolute terms disbursement of credit to the agriculture sector amounted Rs194 billion during first ten months of the current financial year as compared to disbursement of Rs188 billion for the corresponding period last year. It seems almost impossible that during the remaining two months these institutions will be able to disburse Rs76 billion.

The analysis of the performance of various institutions clearly indicates that all except Zarai Taraqiati Bank Limited (ZTBL) failed in discharging their duties at a time when the farmers needed the money most. Agri loans disbursement by ZTBL, the largest specialised financial institution, plunged by nearly 23 per cent during the period. To be precise ZBTL disbursed less than Rs44 billion as compared to Rs56 billion during the period under review, achieving only 53 per cent of its indicative target of Rs82 billion.

As against this the overall credit disbursement by 'Big Five' comprising of Allied Bank, Habib Bank, MCB Bank, National Bank of Pakistan and United Bank registered an increase of more than 12 per cent. Collectively these banks disbursed about Rs108 billion as compared to Rs 96 billion in the same period of last year. Collectively, 14 domestic private banks disbursed Rs38 billion achieving 78 per cent of target of Rs 48.9 billion.

While banking sector experts are attributing this failure to the devastating floods of 2010 the issue is not all that simple. The point to be noted is that this is the third consecutive year financial institutions have failed in meeting the target. This certainly demands undertaking thorough probe, finding the reasons for not meeting the target and imposition of penalties on those institutions, which have failed in discharging their duty diligently. Some of the banking sector experts attribute this failure to bad planning of some of the institutions.

Some experts attribute the failure of financial institutions to failure of the government in introducing comprehensive crop insurance. The financial institutions with the help of insurance companies have successfully been meeting 'agriculture credit insurance' but those at the helm of affairs have not bothered to approve introduction of 'comprehensive crop insurance schemes'.

Let this point be very clear that around the globe the governments play the most important role in enabling the insurance companies to offer 'comprehensive crop insurance schemes'. It seems that the feudal lords enjoying majority in the legislative have completely failed in understanding the basic concept of crop insurance and the role of government, may be because of enjoying access to the corridors of power getting their loans written off is too easy a job.

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.

POVERTY, THE MAIN ECONOMIC ISSUE CONFRONTING PAKISTAN Muhammad Arif

J

une, the end of financial year in Pakistan remains the month where allocated funds are normally exhausted to their maximum. So June 2011 is going to witness enhanced government expenditure. From where these funds are going to come. Obviously from borrowings. Currently banks in Pakistan are risk averse keeping funds with them and mainly investing in government securities. In this regard banks are highly liquid holding deposits of Rs 4.4 trillion i.e. more than Rs 356 billion from the last year. This goes in favor of the government but not in favour of the market that is going through a phase of dismal growth to its minimum.

One should remember that in rising interest rate scenario or on hold situation being pursued by the SBP right now, the government in Pakistan would prefer to borrow from the SBP instead of resorting to the market. This is on account of the fact that SBP charge on its lending at the rate of 6 months Tbill arrived at in the last auction. So obviously in rising interest rate scenario government would prefer to borrow from SBP at low rates.

However in view of current arrangement, government has agreed not to borrow from the SBP above to the ceiling set in September, 2010 resulting in control of deficit financing to some extent. But in spite of that, Governments borrowing from SBP stands at Rs 1.2 trillion i.e. more than Rs 196 billion from the last year. This should have been close to zero in terms of flow to reduce inflationary pressure. However on account of September restrictions government has borrowed Rs 1 trillion from the market i.e. more than Rs 276 billion from the last year. This we are talking of domestic borrowings.

From external sector government has borrowed more than $ 55.6 billion including $ 8.9 billion borrowed from the IMF which is alarming keeping in view GDP size of Pakistan i.e. $170 billion or Rs 17 trillion on current price basis.

Apart from unstable fiscal side, the question, of and on asked is about the prime economic issue of Pakistan. Economist can make a long list against that but to me the answer is one worded i.e. poverty which is haunting every segment of life in Pakistan and has emerged as the main threat for the country. Politicians in our country and economist in particular are talking of making Pakistan self sustained in its economic needs. They are even talking of refusing aid from USA or any other country that includes EU, China, Japan and other friendly countries. Chief Minister of a province has already announced for such steps and has asked for sacrifices for getting this objective achieved. But in fact who are going to come under the gluten.

Unfortunately those, who with family of six to ten are hardly earning Rs10000 or less. Such adventures were done in 1996 and 1998 by extending schemes like Qarz Utaro Mulk Sanwaro and by issuing US Dollar Bonds. But in fact these schemes benefited a class who already enjoyed better economic status in the society. So to move forward on such ventures require strategy formed on ground realities and by using mental stuff. Simple rhetoric of liberating Pakistan from IMF or other donors can not bear desired results. We have to think that Pakistan is not Iran that has oil resources or Turkey that has enemy free borders and is member of NATO and striving to become member of European Union or not Malaysia that has enemy free borders.

Unfortunately Pakistan is encircled with enemies all around its borders leaving just China. So we have to be very cautious in making statements or making decisions on this front.

To achieve objective of getting free in economic terms we have to be sincere with the people of Pakistan. In this regard first of all we have to address its vital issue that is growing immense poverty.

What is poverty?

By definition poverty is the minimum level of income deemed necessary to achieve an adequate standard of living in a given country. The common international poverty line has in the past been roughly $1 a day in 2008. Before that the World Bank came out with a revised figure of $1.25 at 2005 on purchasing-power parity (PPP) basis.

The poverty can be absolute i.e. pursuing same line in different countries According to United Nations, absence of any two of the following eight basic need comes under the definition of absolute poverty: n Food: Body Mass Index must be above 16. n Safe drinking water: Water must not come from solely rivers and ponds, and must be available nearby (less than 15 minutes' walk each way). n Sanitation facilities: Toilets or latrines must be accessible in or near the home. n Health: Treatment must be received for serious illnesses and pregnancy. n Shelter: Homes must have fewer than four people living in each room. Floors must not be made of dirt, mud, or clay. n Education: Everyone must attend school or otherwise learn to read. n Information: Everyone must have access to newspapers, radios, televisions, computers, or telephones at home. n Access to services: This item is undefined, but normally is used to indicate the complete panoply of education, health, legal, social, and financial (credit) services.

For example, a person who lives in a home with a mud floor is considered severely deprived of shelter. A person who never attended school and cannot read is considered severely deprived of education.

A person who has no newspaper, radio, television, or telephone is considered severely deprived of information. All people who meet any two of these conditions - for example, they live in homes with mud floors and cannot read - are considered to be living in absolute poverty.

Than comes the relative poverty that has been defined "poverty" as being below some relative poverty threshold. For example, the statement that "households with an accumulated income less than 60% of the median equivalized household disposable income are living in poverty" uses a relative measure to define poverty. In this system, if every-

one's real income in an economy increases, but the income distribution stays the same, then the rate of relative poverty will also stay the same.

Poverty in Pakistan can be defined as of absolute and in relative terms. Though the middle-class has grown in Pakistan to 35 million, nearly one-quarter of the population is classified poor as of October 2006. As of 2008, 17.2% of the total population lived below the poverty line, which was the lowest

comprehensive strategy with tactical steps to follow. I am sure that if Eight main brokers on civil side i.e. PPP, PML (N), PML (Q), MQM, ANP, JUI, Jamat-e-Islami, and Imran Khan sit together by calling military establishment, form a high powered committee to devise security policies and monitor the outcomes on daily basis than we can overcome the terror of such militancy in time to come.

5. Natural disasters some time highlight inequali-

We have to think that Pakistan is not Iran that has oil resources or Turkey that has enemy free borders and is member of NATO and striving to become member of European Union or not Malaysia that has enemy free borders figure in the history of Pakistan. The declining trend in poverty as seen in the country during the 1970s and 1980s was reversed in the 1990s by poor federal policies and rampant corruption As of 2009, Pakistan's Human Development Index (HDI) is 0.572, higher than that of nearby Bangladesh's 0.543, which was formerly a part of the country itself. Pakistan's HDI still stands lower than that of neighboring India's at 0.612 Incidences of poverty in Pakistan rose from 2226% in the fiscal year 1991 to 32-35% in the fiscal year 1999. They have subsequently fallen to 2526% according to the reports of the World Bank and the UN Development Program reports. These reports contradict the claims made by the Government of Pakistan that the poverty rates are only 23.1%. Furthermore, the poverty rate declined to 17.2% in 2007-08 according to the World Bank.

According to the Human Development Index (HDI), 60.3% of Pakistan's population lives under $2 a day, compared to 75.6% in nearby India and 81.3% in nearby Bangladesh, and some 22.6% live under $1 a day, compared to 41.6% in India and 49.6% in Bangladesh. These figures are astonishing as with just a difference of $1 or Rs85 more than 60 per cent population in Pakistan comes under poverty line instead of 23% at $1 income. So basically for all purposes we have to treat 60 per cent population under immense poverty. Remaining 30 per cent with some higher edge would also be living under miseries having above $2 income. Than only remains 10 per cent , that we can put in comfort zone Wealth distribution in Pakistan is highly uneven, with 10 per cent of the population earning 27.6 per cent of income According to the United Nations Human Development Report, Pakistan's human development indicators, especially those for women, fall significantly below those of countries with comparable levels of per-capita income.

Pakistan also has a higher infant mortality rate (88 per 1000) than the South Asian average (83 per 1000).

The above position suggests that with such poverty, Pakistan can not have a domestic market for its own products consumption which is vitally important for increasing its real GDP growth. In case of Pakistan we need at least 5 per cent real GDP growth as breakeven with our population growth and to bring down poverty level. How far you make your budget an icon from accounting point of view but in real terms you can not take your country towards desired growth and stability till you bring down your poverty level in real sense.

Reasons for increased poverty in Pakistan are as follows. Some suggestions to address these areas have also been provided though they would bear fruit at least in 2-5 years if implemented from today.

1. From day one Pakistan has been made a Security State instead of making it a Welfare State. Even from Islamic point of view there is no room of transforming any Islamic State in to Security State but that has been done in case of Pakistan. Keeping one of the largest army in the world and pursuing Kashmir and Afghan war pushed Pakistan to a position where major part of its budget goes towards military establishment. Health, Education and developmental projects like power generating units have been put aside. Today we are incurring more than 70% of our budget on military establishment and debt servicing. Even most of the foreign aid is being exhausted on these subjects. To address this, is not an easy task. To make Pakistan a peaceful partner in the region does not favor power brokers in our country. However if Pakistan has to move forward than it has to play its role in evolving this region in to a region of peace like Asean or EU. 2. Second main reason is lack of governance in Pakistan. No institution is working. Budgets if left somewhere are being used without proper planning and accountability. Pakistan needs three tier system to create governance i.e. Parliament at the highest level, than comes Provincial assemblies and finally local governments. Absence of any layer would tantamount to negate proper governance in Pakistan.

All poverty alleviation programs need to be structured and monitored through these layers.

3. Third main issue is the abolition of feudalism. It exists in real form in rural areas and through mindset in urban areas. Both can be addressed by strengthening judiciary, law and order, Tax collecting agencies, health and education centers. By statutes these institutions need to be allowed to function independently under strict vigilance and coordination of three tier system i.e. federal/Provincial and local governments.

4. Support for Islamic Militancy is the fourth issue that has spread like a disease during last two decades. Common perception about this issue is confusing. Every one in Pakistan has their own views. This is dangerous. Though the issue has mainly cropped up due to fundamental reason of poverty and involvement of military establishment in their tenures but now it has become a disease and hurting further growth of economy. So this requires a major surgery. Alone military or civil establishments can not address this issue. This requires a

ties in the systems. Looking in to the recent 2010 Pakistan floods has accentuated differences between the wealthy and poor in Pakistan. It has been repeatedly alleged that wealthy feudal warlords and landowners in Pakistan have been diverting funds and resources away from the poor and into their own private relief efforts. Evidence have been observed that landowners had allowed embankments to burst, leading to water flowing away from their land.

There are also allegations that local authorities colluded with the warlords to divert funds. The floods have accentuated the sharp divisions in Pakistan between the wealthy and the poor. The wealthy, with better access to transportation and other facilities, have suffered far less than the poor of Pakistan.

These issues relate to lack of proper governance.

Politicians in our country and economist in particular are talking of making Pakistan self sustained in its economic needs.

They are even talking of refusing aid from USA or any other country that includes EU, China, Japan and other friendly countries.

Chief Minister of a province has already announced for such steps and has asked for sacrifices for getting this objective achieved 6. Finally all financial institutions need to be directed to devise schemes in favor of poor segments of the society. We all should remember that after getting success Dr Younus of Gramene Bank in Bangladesh said that I was able to do it because I was an idealist and not a banker who always go for profit. SBP should constitute a group in this regard for giving direction to the financial institutions and to lay down some projects in addition to Baitul Mal, Benazir Income Support Funds and chains of Micro finance and SMEs Banks working pathetically to alleviate poverty in Pakistan.

(The writer is a member of visiting Faculty at KASBIT).

5

Thursday, May 26, 2011

SE Asia Stocks-Mostly lower; selective buying lifts coal miners

European stocks bounce back in technical rally

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

Profit taking chips gains at KSE

12,130.58 12,168.12 37.54 0.31 122.92

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

3,229.62 3,269.62 40.00 1.24 4.98

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

Nawaz Ali

2,742.82 2,754.25 11.43 0.42 0.06

Major Gainers

Symbol

Close

Change

BATA IDYM SHEZ SHEL BTL

486.36 303.55 152.85 220.78 66.15

14.95 8.79 7.16 4.26 3.15

Major Losers

Symbol

Close

Change

ULEVER 5,167.00 SIEM 980.00 NESTLE 3,511.19 ALNRS 49.37 PAKT 94.00

-86.68 -45 -44.45 -2.33 -2.05

Top 5 Volume Leaders

Symbol

Close Vol (mn)

ANL JSCL BOP NIB LOTPTA

6.58 8.12 6.15 1.71 15.28

19.36 15.61 11.88 6.77 5.55

Active Issues Plus Minus Unchanged

209 63 88

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

WARSAW : Poland's Prime Minister Donald Tusk arrives for the CEE IPO Summit at the Warsaw Stock Exchange in Warsaw .-Reuters

Indian shares shed on global cues BANGALORE: Indian shares ended Wednesday 0.9 per cent lower on lackluster volumes, led by losses in the country's top-listed real estate firm DLF Ltd and tracking weaker global markets as fears over Europe's widening debt crisis weighed on sentiments.

Concerns about rising interest rates and inflation continued to lurk a day ahead of the expiry of the monthly derivatives contracts, dealers said.

"This market is down because of lack of buying interest, and because of corrective downside due to derivatives expiry," said Deven Choksey, managing director and CEO of brokerage KR Choksey Shares in Mumbai.

Monsoon rain outlook and crude price movements will be key triggers for the market that he expects will move in a 300point range in the near term.

The 30-share BSE index closed down 0.9 per cent or about 165 points at 17,847.24 points, with 25 of its components in the red.

The benchmark has lost 6.7 per cent this month as foreign funds pulled out $1.7 billion pressured by a sharper-thanexpected 50 basis point rate hike by India's central bank early in May. The country's central bank has been one of the most aggressive central banks in tightening policy to tame stubbornly high inflation, raising rates nine times since March 2010.

"There are inflationary pressures hovering over the market.

The outlook for the market is not positive," said K. K. Mital, head of portfolio management services at Globe Capital in New Delhi.

"The way the market is going down, the way the foreign inflows are not coming in, this does not give comfort to the investors."

DLF, which is sensitive to interest rates, missed analysts' estimates with a 19 per cent fall in quarterly profit, and warned the central bank's actions to tighten liquidity will likely temper sector growth in the current fiscal year.

"DLF's numbers were not good. Concerns are building up about the company's cash flows," Mital said. "The high interest rates environment will keep the real estate stocks under pressure."

Its shares fell 5 per cent to a two-year low of 208.10 rupees earlier in the session and ended 4.1 per cent lower at 210.05 rupees.

The 50-share NSE Index ended down 0.85 per cent at 5,348.95 points. In the broader market, 905 losers led 503 gainers on a relatively lower volume of about 488 million shares on the NSE. Infosys was amongst the major losers, shedding almost 2 per cent to end at 2,788.65 rupees, after India's No. 2 software services exporter said late on Tuesday it had received a subpoena from a US district court related to short-term business visas for its staff.

Larger rival Tata Consultancy Services shed 1.85 percent, while Wipro ended nearly one per cent lower.

India's top engineering and construction firm Larsen & Toubro, which had gained almost 9 per cent since posting estimate-beating quarterly profit last week, saw some selling pressure on Wednesday.

The shares shed 2.3 per cent to close at 1,604.50 rupees.

Tata Steel ended down 0.9 per cent at 561.20 rupees ahead of its quarterly results. The world's No. 7 steel maker is expected to report profit fell by a third, hurt by tepid demand in Europe and rising raw material prices.

See # 13 Page 11

FTSE 100 pares losses on GDP relief LONDON: The top share index pared its losses on Wednesday on investor relief that there was no deterioration in gross domestic product (GDP) figures, having earlier flirted with a key technical level in a bearish sign for the index.

By 12:25 pm, the FTSE 100 was off 3.04 points, or 0.1 per cent, at 5,855.37, well clear of its session low of 5,810.46, after the Office for National Statistics left its preliminary growth estimates for first-quarter UK GDP unrevised at +0.5 per cent.

"If we close above 5,800 (the 200-day moving average) I think we're okay; if we close below it then it could well mean that we're going to test the next level of support really, around 5,650 (Japan crisis levels)," Ed Woolfitt, head of trading at Galvan Research, said.

"I think the main weight on this market at the moment and what's creating a bit of skittish trading is obviously the euro debt uncertainty and also a lot of uncertainty surrounding the state-backed banks, RBS and Lloyds."

Banks came under pressure on Tuesday after credit rating agency Moody's said it might cut its rating on 14 British financial groups, including Royal Bank of Scotland and Lloyds Banking Group But the sector staged a recovery, led by a 1.4 per cent advance from Barclays, while RBS and Lloyds climbed 0.7 per cent and 0.6 per cent, respectively.

MINERS SUPPORT Gains were seen among the miners as copper rose, supported by positive comment on the metal from Goldman Sachs on Tuesday.

Antofagasta was the star blue-chip performer, up 2 per cent, with traders citing the impact of an upgrade in rating See # 14 Page 11

KARACHI: Karachi Stock Exchange ended at a three months high on Wednesday because of continued buying on hopes of possible replacement of Capital Gains Tax (CGT) in the upcoming budget. Greater participation by the investors allowed the index to move upwards.

The benchmark KSE-100 index rose by 37 points to close at 12,168 points, KSE30 index increased by 48 points to close at 11,803 points and KSE all-share index grew by 30 points to close at 8,461 points.

"Across the board buying was seen as government reviews the suggestion on Capital Gains Tax after business council meets the federal finance minister", said Ahsan Mehanti, Director Arif Habib Investments.

The day started on a positive note after which some profit taking did take place pushing the index into the red zone but loss was restricted to just 4 points as renewed buying allowed the index recover.

The expectations that the Capital Gains Tax (CGT) would be replaced by 0.02

per cent Capital Value Tax (CVT) on both sides of transactions supported the market.

The index at a moment touched an intra-day of 12,217 points (+ve 86).

Further, rising international oil prices and expectations of government interest in gas load management too invited interest in the respective stocks.

Though index remained in the green zone but some profit taking at higher levels reduced the gains and the day finally managed to close above 12,000 points.

Investor participation remained impressive throughout the day as 122.9 million shares exchanged hands which were 52.8 million shares more as compared to a turnover of 70.1 million shares a day earlier.

However most of the shares were traded in low cap stocks. Azgard Nine emerged the volume leader with 19.36 million shares followed by Jahangir Siddiqui Co., with 15.61 million shares and Bank of Punjab with 11.88 million shares.

Out of total 360 active issues; 209 advanced and 63 declined while 88 issues remained unchanged.

Nikkei hits 2-month closing low TOKYO: Japan's Nikkei share average fell to its lowest close in two months on Wednesday in thin trade as worries about the euro zone debt crisis and a slowdown in the US economy deterred investors from moving in to take advantage of cheap valuations.

With share prices under pressure globally and threatening to fall below key chart levels, reports that Toyota will return to pre-quake production levels earlier than previously thought failed to ignite broader buying in battered manufacturers.

See # 12 Page 11

ANNOUNCEMENTS Company Faran Sugar Fecto Sugar Hussein SugarXR AL-Abbas Sugur

Period Half Yearly Half Yearly Half Yearly Half Yearly

Div/Bon/Right -

PAT (Rs in mn) 148.93 -99.44 102.13 153.57

EPS(Rs) 6.88 -6.82 8.44 8.84

Wall Street slips on data NEW YORK: Stocks fell slightly on Wednesday after data pointed to a slowdown in US growth, but a technical rebound was possible with the benchmark S&P 500 at its lowest in a month.

The S&P 500 index closed at its lowest level in over a month on Tuesday and ended below its 50-day moving average for a second straight day. The Dow closed lower for a third session.

"The continuation of concerns about Europe, about the economy growing at a slower pace is weighing on the market, but the S&P 500 is right at its 100-day moving average of 1,314, and there is a good chance we will see a bounce today," said Robert Pavlik, chief market strategist at Banyan Partners LLC in New York.

New orders for long-lasting durable goods posted their largest decline in six months in April as aircraft and motor vehicle orders tumbled, a government report showed.

Recent weak US data, including soft manufacturing figures from the Atlantic region and disappointing New York and Philadelphia Fed manufacturing surveys, pointed to a slowdown in the pace of economic growth.

American International Group Inc shares fell 4.1 per cent to $28.25, below the $29 offer price of the 300 million shares being sold by the US Treasury and the bailed-out insurance company.

In earnings, Polo Ralph Lauren Corp posted lowerthan-expected quarterly results and said higher raw material costs and business interruptions in Japan would hurt full-year margins. The stock was down 8.2 percent at $118.63.

The Dow Jones industrial average was down 19.07 points, or 0.15 per cent, at 12,337.14. The Standard & Poor's 500 Index was down 1.97 points, or 0.15 per cent, at 1,314.31. The Nasdaq Composite Index was up 0.72 point, or 0.03 per cent, at 2,746.88. -Reuters

Dhiyan

OPTIMISM DRIVING THE MARKET Mohammad Siddique Dalal, Chairman, Dalal Securities Positive activities are likely to continue till announcement of budget over hopes of some good news regarding Capital Gains Tax (CGT).

The index would move between 12,000 and 12,500 points. An investment friendly budget, increase in tax base by imposing tax on sectors currently enjoying exemptions and release of the withheld tranche by the IMF could further boost the sentiments. Investors are suggested to invest in oil, fertiliser and certain banking stocks. Market would remain bullish today.

HK stocks witness low volume HONG KONG: Hong Kong shares finished marginally higher on Wednesday amid weakness in overseas markets and as volume remained weak, but emerging value in heavyweight banking shares could lift the benchmark out of technically oversold levels in the near term.

The benchmark Hang Seng Index closed up 0.07 per cent at 22,747.28 on Wednesday, with stiff resistance seen at its 200day moving average, now at 23,019.

China stocks declined for the fifth straight session in tepid trade, weighed down by financial plays as the benchmark Shanghai Composite Index closed down 0.91 per cent to stay under its 250-day moving average for the third session

running.

Hong Kong fashion and lifestyle giant Esprit Holdings Ltd, the top loser among benchmark constituents, lost 5.2 per cent, its biggest singlesession loss in more than seven months, to its lowest level in 2-1/2 years. The loss on 1.6 times its 30-day average volume was driven by institutional names selling on a diminishing outlook on the company's core European business, traders said, sending the stock back into technically oversold territory after a brief respite on Tuesday. Esprit is down 20.9 per cent on the quarter, underperforming the 1.7 per cent gain by the Hang Seng Consumer Goods subindex.

China Resources Power

Holdings Co Ltd was the biggest gainer on the Hang Seng Index, rising 2.9 per cent to HK$15.48 and heading closer to the seven-month high of HK$16.20 hit earlier this month. The stock has been a popular play on China's power crunch since the company has heavy exposure to parts of the mainland that lack adequate power supplies. However, investors should beware of the falling trading volume. The stock traded on slightly more than half of its 30-day average volume on Wednesday, and the five-day average volume has been below the 20-day average for more than a week. While the mainland power crunch is not expected to end soon, the stock's rally might if volumes fail to pick up. -Reuters

Farhan Mansuri, VP Capital Markets, Arif Habib Limited Market would continue to see bullish activities moving forward in anticipation of replacement of CGT with 0.02 per cent withholding tax. However, investors are advised to invest cautiously in quality stocks belonging to oil and fertiliser sectors. Apart from replacement of CGT, buying by the foreign and local institutions would also bode well.

Market would be positive today.

6

Thursday, May 26, 2011

Market

KSE 100 Index

Symbols

Volume

122,922,600

Value

3,301,001,215

Trades

63,690

Advanced Decline Unchanged Total

Current High Low Change

209 63 88 360

All Share Index

12,168.12 12,217.43 12,125.46 h37.54

Current High Low Change

8,461.38 8,492.69 8,430.29 h30.18

OIL AND GAS

Company

Paid up Cap(mn)

PE

Current High Low Change

KMI 30 Index Current High Low Change

11,803.58 11,832.30 11,754.80 h48.78

20,675.87 20,743.97 20,637.92 h37.95

High Low 1,528.18 1,515.35 Total cos Defaulter cos 12 P/BV (x) ROE (%) 3.45 32.54

Open

High

Low

Close Chg

Volume

382.90 126.10 9.47 105.00 335.00 152.50 214.60 334.99 85.95 288.60 23.00 221.50

379.25 124.42 9.15 103.00 332.60 151.20 213.01 332.60 84.51 286.23 22.22 216.01

380.04 1.75 125.53 1.12 9.20 0.06 104.13 1.09 333.43 0.65 151.40 0.35 213.85 0.91 333.03 1.68 84.96 0.15 287.18 1.60 22.47 -0.29 220.78 4.26

69922 637346 3150158 30488 170090 662180 763522 1171032 52269 473942 7150 26465

Last 60 days High Low 387.98 129.40 10.43 113.95 356.50 158.80 216.50 334.99 110.50 294.49 28.29 221.50

338.18 108.70 7.93 98.50 276.50 128.21 199.50 304.00 81.23 269.47 22.11 192.67

% Change 0.39 5-Day High 1,519.35 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

Open 704.65 Turnover 65,952 P/E (x) 5.09 Company

High Low 728.92 703.30 Total cos Defaulter cos 4 2 P/BV (x) ROE (%) 1.30 25.53

Close 723.43 Listed cap 3,242.17 mn Payout (%) 11.08

Change 18.78 Market cap 12,048.69 mn Div Yield (%) 2.18

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1092 1321

6.85 8.14

72.00 27.98

75.00 28.05

72.03 27.60

74.46 2.46 27.77 -0.21

57766 8186

76.25 33.45

Pak Int Cont. Terminal PNSC

64.75 25.18

Paid up Cap(mn)

PE

Open

High

Low

Agritech Limited 3924 Bawany Air 75 BOC (Pak) 250 Clariant Pak 341 Dawood Hercules 4813 Descon Chemical 1996 Descon Oxychem Ltd. 1020 Dewan Salman 3663 Engro Corporation Ltd 3933 Engro Polymer 6635 Fatima Fertilizer 22000 Fauji Fertilizer XD 8482 Fauji Fert. Bin Qasim 9341 Ghani Gases Ltd 725 ICI Pakistan 1388 Ittehad Chemical 360 Lotte Pakistan 15142 Mandviwala 74 Nimir Ind ChemicalSPOT 1106 Sardar Chemical 60 Shaffi Chemical 120 Sitara Chem Ind 214 Sitara Peroxide 551 Wah-Noble 90

3.63 7.21 4.92 3.69 11.35 8.70 8.68 6.38 10.78 8.78 4.60 4.27 10.70 3.27 28.75 2.53 5.66 5.05

18.24 7.31 96.33 161.28 63.92 2.27 7.56 2.35 193.57 11.06 12.40 140.98 42.48 12.22 158.38 31.00 15.25 0.99 2.42 1.50 2.30 102.00 18.13 35.50

18.85 7.70 95.90 161.99 64.00 2.33 7.80 2.48 195.68 11.39 12.84 141.70 42.78 12.95 158.95 32.55 15.47 0.92 2.53 1.80 2.30 101.90 18.59 36.00

17.86 6.75 95.00 160.05 63.21 2.21 7.55 2.33 193.11 11.15 12.35 140.36 42.35 12.28 157.50 29.50 15.21 0.91 2.41 1.80 2.06 101.84 18.05 35.56

Close Chg 18.24 7.23 95.77 161.23 63.63 2.30 7.72 2.40 194.73 11.26 12.73 141.02 42.62 12.83 157.96 31.65 15.28 0.99 2.46 1.80 2.30 102.00 18.28 35.74

0.00 -0.08 -0.56 -0.05 -0.29 0.03 0.16 0.05 1.16 0.20 0.33 0.04 0.14 0.61 -0.42 0.65 0.03 0.00 0.04 0.30 0.00 0.00 0.15 0.24

Close 1,857.38 Listed cap 52,251.88 mn Payout (%) 48.81

Change 4.42 Market cap 380,598.83 mn Div Yield (%) 5.51

Last 60 days High Low

Volume 441 10000 1250 9187 140395 54874 237536 829861 1113697 251763 585998 2937512 1399725 602729 105731 975 5553631 301 170589 1000 18348 200 844458 4540

24.55 9.45 99.80 201.40 294.00 3.23 9.60 3.10 238.50 13.95 13.60 145.21 43.89 14.49 172.00 32.55 17.36 1.40 3.40 1.90 2.99 112.45 19.99 37.99

17.86 6.41 85.25 140.00 56.10 2.00 6.40 2.11 188.55 10.70 11.70 116.40 37.86 10.43 148.02 20.11 14.64 0.18 2.26 0.75 1.66 90.78 12.50 34.19

% Change 0.24 5-Day High 1,857.38 5-Day Low 1,817.09

2010 Div BR (%) (%)

2011 Div BR (%) (%)

5 10R 60 135 25B 50 300B 60 20B - 27.5R 130 25B 45.00 65.5 - 12.50 175 5 5 5 25 5B 50 -

-

FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,106.03 Turnover 104,352 P/E (x) 5.70 Company

High Low 1,148.50 1,108.01 Total cos Defaulter cos 4 1 P/BV (x) ROE (%) 0.43 7.47

Close 1,139.50 Listed cap 1,186.83 mn Payout (%) 25.28

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

707 50 411

1.85 7.43

16.80 41.40 40.07

17.19 43.47 42.00

16.60 41.80 40.50

16.84 0.04 43.47 2.07 42.00 1.93

92666 2340 9346

Century Paper Pak Paper Product Security Paper

Change 33.46 Market cap 3,143.71 mn Div Yield (%) 4.43

Last 60 days High Low 17.50 44.49 42.00

13.85 35.17 35.31

% Change 3.03 5-Day High 1,139.50 5-Day Low 1,088.72

2010 Div BR (%) (%) 2533.33B 50 -

2011 Div BR (%) (%) -

Open 1,143.41 Turnover 934,412 P/E (x) 3.96 Paid up Cap(mn)

PE

Open

Agriautos Ind 144 4.48 72.72 Atlas Battery 101 5.60 209.38 Atlas Honda 626 9.22 148.05 Baluchistan Wheels Ltd. 133 1.52 32.49 Dewan Motors 1087 1.63 Exide (PAK) 56 4.90 197.99 General Tyre 598 4.39 23.20 Ghandhara Nissan 450 3.05 Ghani Automobile Ind 200 6.64 3.43 Honda Atlas Cars 1428 9.51 Indus Motors 786 7.70 221.46 Pak Suzuki 823 15.52 68.90 Transmission 117 1.40

High

High Low 1,171.78 1,130.92 Total cos Defaulter cos 19 4 P/BV (x) ROE (%) 1.00 25.35 Low

Close Chg

Company

Paid up Cap(mn)

Crescent Steel

565

Dost Steels Ltd Huffaz Pipe XD International Ind Siddiqsons Tin

PE

Open

High

Low

Close Chg

Close 1,022.81 Listed cap 3,596.11 mn Payout (%) 30.91

Change 11.15 Market cap 9,483.08 mn Div Yield (%) 9.33

Last 60 days High Low

Volume

2010 Div BR (%) (%)

2011 Div BR (%) (%)

1.86

27.34

27.79

27.45

27.45 0.11

5350

29.75

25.67

30

- 20.00

-

675 555 20.84 1199 9.12 785 25.71

1.87 11.16 50.72 8.57

2.04 11.79 51.50 9.15

1.80 11.50 50.62 8.80

2.00 11.67 50.99 9.00

122618 4198 107172 1002

2.42 14.90 54.50 9.98

1.62 11.05 48.51 8.55

40 7.5

25B 15.00 20B 15.00 -

-

0.13 0.51 0.27 0.43

Company

Paid up Cap(mn)

Adam Sugar AL-Noor Sugar Ansari Sugar Clover Pakistan Crescent Sugar Dewan Sugar Fecto Sugar Habib Sugar Habib-ADM Ltd Haseeb Waqas Hussein Sugar XR J D W Sugar Kohinoor Sugar Mirza Sugar National Foods Noon Pakistan Noon Sugar Pangrio Sugar Quice Food S S Oil Sakrand Sugar Sanghar Sugar Shakarganj Mills UniLever Pakistan Wazir Ali

58 186 244 94 214 365 146 750 200 324 121 539 109 141 414 48 165 109 107 57 223 119 695 665 80

PE

Close 1,147.28 Listed cap 6,768.53 mn Payout (%) 20.42

Volume

Change 3.87 Market cap 42,596.74 mn Div Yield (%) 5.16

Last 60 days High Low

Company

Paid up Cap(mn)

Al-Abbas Cement Attock Cement Berger Paints Bestway Cement Buxly Paints Cherat Cement Dadabhoy Cement Dewan Cement DG Khan Cement Ltd Fauji Cement XR Fecto Cement Flying Cement Ltd Gharibwal Cement Haydery Const Kohat Cement Lafarge Pakistan Cmt. Lucky Cement Maple Leaf Cement Pioneer Cement Shabbir Tiles Thatta CementSPOT

1828 866 182 3257 14 956 982 3891 3651 6933 502 1760 4003 32 1288 13126 3234 5261 2271 361 798

PE

Open

High

Low

6.75 46.48 15.46 30.48 7.10 5.44 74.00 5.75 -

2.62 53.42 15.45 13.99 7.40 9.60 1.98 1.46 22.39 4.03 6.30 1.29 6.60 0.49 6.19 2.86 70.64 2.06 5.12 6.12 17.97

2.90 53.60 16.40 14.00 7.99 9.80 2.02 1.55 23.20 4.14 6.85 1.40 6.17 0.49 6.40 2.99 71.45 2.12 5.30 6.00 17.50

2.56 53.10 15.82 13.99 6.63 9.60 1.98 1.45 22.44 4.03 6.30 1.31 6.17 0.40 6.25 2.81 70.60 2.05 5.07 6.00 17.11

Close 869.29 Listed cap 54,792.74 mn Payout (%) 19.04

Change 7.72 Market cap 62,835.45 mn Div Yield (%) 2.95

Close Chg

Volume

Last 60 days High Low

2.70 53.32 16.32 14.00 7.73 9.76 2.01 1.50 22.86 4.12 6.31 1.35 6.17 0.40 6.26 2.96 70.81 2.10 5.20 6.12 17.11

24492 6010 14003 2000 621 6605 10232 15937 3814241 300436 1116 86389 2000 3003 11515 282524 340087 93952 51247 300 600

3.23 56.70 17.40 14.99 10.00 11.90 2.24 2.19 26.44 4.69 8.90 1.84 13.50 0.90 7.87 3.45 73.69 2.89 6.40 8.50 19.19

0.08 -0.10 0.87 0.01 0.33 0.16 0.03 0.04 0.47 0.09 0.01 0.06 -0.43 -0.09 0.07 0.10 0.17 0.04 0.08 0.00 -0.86

2.15 49.00 13.55 10.67 6.63 8.65 1.50 1.36 21.31 3.99 6.10 1.26 5.00 0.26 5.25 2.10 61.90 1.97 4.50 5.13 17.00

% Change 0.90 5-Day High 869.29 5-Day Low 849.14

2010 Div BR (%) (%)

2011 Div BR (%) (%)

- 100R 50 - 122R - 75.5R - 20R 40 - 50R

- 20R - 92R - 100R -

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 976.95 Turnover 117,652 P/E (x) 2.77 Company Cherat Papersack ECOPACK Ltd Ghani Glass MACPAC Films Packages Ltd Siemens Engineering Tri-Pack Films

Paid up Cap(mn)

PE

Open

High

High Low 1,000.09 965.43 Total cos Defaulter cos 13 2 P/BV (x) ROE (%) 1.21 43.91 Low

Close Chg

115 2.52 50.11 52.00 50.10 51.34 1.23 230 1.36 1.49 1.32 1.36 0.00 1067 5.66 54.40 55.69 54.30 55.67 1.27 389 2.59 13.00 13.50 12.85 12.99 -0.01 844 18.54 111.00 114.00 111.10 111.25 0.25 82 18.84 1025.00 1045.00 980.00 980.00-45.00 300 6.55 166.00 168.99 167.00 168.00 2.00

Close 972.54 Listed cap 3,043.31 mn Payout (%) 15.55

Volume 62825 102 25967 11418 807 127 16401

Change -4.41 Market cap 36,139.13 mn Div Yield (%) 5.62

Last 60 days High Low 56.90 2.68 56.07 15.21 124.50 1120.00 172.00

46.45 1.31 49.00 4.00 103.01 930.00 126.51

2010 Div BR (%) (%) 20 25 32.5 900 100

25B 10B -

% Change -0.45 5-Day High 976.95 5-Day Low 961.07 2011 Div BR (%) (%) -

50R -

INDUSTRIAL ENGINEERING

Company Ados Pak AL-Ghazi Tractor Bolan Casting Ghandhara Ind Hinopak Motor Millat Tractors Pak Engineering

Paid up Cap(mn)

PE

Open

66 3.07 8.15 215 4.13 236.99 104 4.72 47.33 213 10.12 8.17 124 - 87.00 366 8.24 540.34 57 - 89.57

High

High Low 1,624.12 1,606.13 Total cos Defaulter cos 11 1 P/BV (x) ROE (%) 3.10 38.02 Low

Close Chg

8.50 8.30 8.38 239.00 237.00 238.89 47.95 47.50 47.83 8.67 8.30 8.50 89.70 88.00 87.00 543.00 538.11 542.27 92.94 86.16 91.99

0.23 1.90 0.50 0.33 0.00 1.93 2.42

Close 1,620.29 Listed cap 1,336.62 mn Payout (%) 131.49

Volume 1001 7572 648 3350 117 102997 1003

7.40 199.05 42.70 8.01 85.00 503.01 86.16

70.00 185.00 128.11 31.06 1.50 170.11 22.01 2.16 2.90 9.00 205.51 60.00 1.11

2010 Div BR (%) (%) 90 100 50 25 60 20 150 5 -

% Change 0.34 5-Day High 1,147.28 5-Day Low 1,134.95 2011 Div BR (%) (%)

20B 15B 65.00 - 50.00 -

15B -

Open

High

Low

Close Chg

Close 2,094.78 Listed cap 11,335.33 mn Payout (%) 30.57

Volume

Change -21.26 Market cap 295,327.48 mn Div Yield (%) 0.68

Last 60 days High Low

500 15.00 11.50 22776 54.20 37.65 3000 8.95 5.45 260 67.42 53.62 1520 8.99 6.02 8789 3.70 2.16 774 50.00 35.07 36447 24.50 20.50 414 13.00 10.80 10609 15.10 9.14 900 11.97 8.00 1405 83.95 70.50 10000 4.69 2.45 30802 4.18 2.50 6055 68.89 52.01 1000 23.70 19.75 2683 21.80 10.11 33302 5.08 3.25 1000 3.90 2.20 7000 6.45 3.50 20500 3.00 1.60 1020 13.01 11.26 5078 7.49 4.01 119 5988.18 4500.00 5900 7.50 5.50

2010 Div BR (%) (%)

% Change -1.00 5-Day High 2,118.86 5-Day Low 2,094.78 2011 Div BR (%) (%)

25 50 15 25 25B 40 10 7010B 12.5R 10 12 12 10 15 492 -

-40.49R -

Open 743.66 Turnover 284,263 P/E (x) 1.45 Company

Paid up Cap(mn)

Pak Elektron Singer Pak XB Tariq Glass Ind

High Low 769.50 753.66 Total cos Defaulter cos 15 7 P/BV (x) ROE (%) 0.15 10.64

Close 761.34 Listed cap 3,763.71 mn Payout (%) 6.27

PE

Open

High

Low

Close Chg

Volume

1219 375 142.15 231 1.62

7.84 17.55 11.99

8.11 18.50 12.75

7.90 18.48 11.95

8.01 0.17 18.48 0.93 12.30 0.31

36806 607 246850

Change 17.68 Market cap 4,179.04 mn Div Yield (%) 4.33

2010 Div BR (%) (%) 400 25 650 100

Last 60 days High Low

2010 Div BR (%) (%)

14.50 22.23 17.40

17.5

7.26 14.71 11.20

10B 10B -

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

PERSONAL GOODS Performance of SR Personal Goods Index Open 962.09 Turnover 23,564,193 P/E (x) 5.15 Company

Paid up Cap(mn)

Ali Asghar Textile Amtex Limited Azgard Nine Babri Cotton Bannu Woolen XD Bata (Pak) Bilal Fibres Blessed Tex Mills Chenab Limited Colony Mills Ltd Crescent Textile D S Ind Ltd Dawood Lawrencepur Dewan Farooque Spin.

Din Textile Elahi Cotton Fazal Cloth Gadoon Textile XD Gul Ahmed Textile Gulistan Spinning Gulshan Spinning Hajra Textile Hira Textile Mills Ltd. Ibrahim Fibres Idrees Textile Indus Dyeing Janana D Mal Khalid Siraj Khurshid Spinning Kohinoor Ind Kohinoor Mills Kohinoor Textile Masood Textile Mian Textile Mohd Farooq Mubarak Textile Mukhtar Textile Nagina Cotton Nishat (Chunian) Nishat Mills Pak Synthetic Premium Textile Reliance Cotton Rupali Poly Saif Textile Sajjad Textile Salfi Textile Sally Textile Sana Ind Service Ind XD Sunrays Textile Suraj Cotton Tata Textile Thal Ltd Treet Corp Yousuf Weaving ZahidJee Textile Zil Limited

222 2594 4493 37 76 76 141 64 1150 2442 492 600 591 978 204 13 188 234 635 146 222 138 716 3105 180 181 48 107 132 303 509 2455 600 221 189 54 145 187 1620 3516 560 62 103 341 264 213 33 88 55 120 69 180 173 307 418 400 341 53

High Low 974.32 960.44 Total cos Defaulter cos 211 73 P/BV (x) ROE (%) 0.45 8.64

PE

Open

High

Low

0.28 0.77 5.72 0.85 0.63 1.98 3.58 1.48 0.57 0.85 0.69 3.16 0.37 0.46 0.79 3.20 1.59 2.89 0.42 0.38 4.90 1.59 0.61 3.96 5.29 2.40 0.66 0.51 3.01 0.30 0.26 0.27 2.97 3.00 0.83 0.75 0.45 7.23 0.60 0.67 6.74

0.86 1.97 6.02 15.49 18.65 471.41 1.09 63.00 1.92 1.90 13.32 1.19 35.12 2.21 27.20 5.50 52.00 69.50 50.08 7.00 10.50 0.62 3.90 45.16 4.35 294.76 13.68 1.35 0.80 1.14 1.51 4.01 17.18 0.40 1.00 0.55 0.50 14.66 24.67 58.81 19.00 25.84 25.55 39.74 8.12 1.43 50.97 6.82 37.43 176.04 36.01 37.00 34.43 105.36 56.62 1.35 6.98 62.71

1.00 2.10 6.85 16.49 19.25 494.98 1.05 66.15 2.40 1.99 14.30 1.27 36.00 2.25 28.56 6.50 51.34 72.50 50.10 7.01 11.00 0.63 4.00 45.88 4.54 309.00 14.68 1.40 1.08 1.15 2.34 4.40 17.20 0.50 1.00 1.20 0.69 15.00 25.90 59.98 19.99 27.00 26.50 40.10 8.50 0.90 53.49 7.24 39.30 178.48 35.00 38.85 33.00 106.40 59.20 1.40 7.98 65.50

1.00 1.97 6.09 15.50 18.27 470.01 1.05 61.00 1.74 1.80 12.51 1.12 34.50 2.25 28.20 6.00 50.00 70.00 50.01 7.00 11.00 0.60 3.83 44.00 4.10 280.37 13.05 1.37 1.08 1.07 1.07 4.05 17.11 0.50 1.00 0.95 0.50 15.00 24.75 58.85 18.10 27.00 26.00 40.00 8.49 0.90 50.00 7.00 39.20 176.00 35.00 38.80 32.75 103.51 57.10 1.35 7.65 60.66

Close Chg 0.86 2.03 6.58 16.43 18.34 486.36 1.09 66.15 2.18 1.90 13.32 1.24 35.29 2.25 28.56 6.50 51.34 71.18 50.01 7.00 11.00 0.63 3.94 44.90 4.15 303.55 14.68 1.37 1.08 1.15 1.51 4.26 17.15 0.50 1.00 1.14 0.50 15.00 25.77 59.59 19.20 27.00 26.06 40.00 8.50 0.90 51.00 7.00 39.20 176.06 35.00 38.85 33.00 104.05 57.83 1.35 7.65 62.25

0.00 0.06 0.56 0.94 -0.31 14.95 0.00 3.15 0.26 0.00 0.00 0.05 0.17 0.04 1.36 1.00 -0.66 1.68 -0.07 0.00 0.50 0.01 0.04 -0.26 -0.20 8.79 1.00 0.02 0.28 0.01 0.00 0.25 -0.03 0.10 0.00 0.59 0.00 0.34 1.10 0.78 0.20 1.16 0.51 0.26 0.38 -0.53 0.03 0.18 1.77 0.02 -1.01 1.85 -1.43 -1.31 1.21 0.00 0.67 -0.46

Close 967.78 Listed cap 47,070.70 mn Payout (%) 16.68

Volume

Change 5.68 Market cap 125,485.39 mn Div Yield (%) 3.24

Last 60 days High Low

190 1.45 131237 3.25 19363811 9.79 9465 18.41 88632 23.27 6805 603.00 498 1.95 6200 68.09 33018 3.40 246 2.85 195 17.88 99504 1.85 7005 49.05 2500 5.00 719 33.69 1000 6.50 115 59.70 6092 102.24 9980 53.65 10901 9.23 5000 11.68 13001 1.50 57526 5.20 12200 50.74 5703 6.00 801 327.80 27224 17.80 1010 1.79 4500 1.80 6255 1.90 477 2.90 22956 5.58 2915 18.89 500 0.75 1425 1.69 1982 1.90 403 0.77 500 17.95 941746 29.50 2375525 66.75 3248 21.21 3959 33.07 563 42.50 1400 44.40 2707 11.50 500 1.88 2190 70.99 5304 9.35 525 41.98 1348 215.44 4000 38.30 10300 42.00 561 43.00 57261 117.40 200641 59.20 1010 1.88 500 7.98 8171 71.47

2010 Div BR (%) (%)

% Change 0.59 5-Day High 967.78 5-Day Low 955.31 2011 Div BR (%) (%)

0.61 1.81 - 30B 4.40 13.80 - 15B 14.45 20 411.00 280 0.71 58.00 50 1.65 1.50 12.51 15 0.95 34.50 5 15B 1.81 26.35 20 10B 3.50 50.00 100SD 66.00 70 34.25 12.5 6.30 10 8.50 10 20B 0.01 3.76 10 43.12 20 3.05 10 251.00 50 - 50.00 12.90 0.86 0.80 0.86 0.67 3.60 16.70 15 100R 0.31 0.51 0.45 0.16 14.10 20SD 23.15 15 56.80 25 45R 14.70 24.85 50 24.37 20 38.05 40 7.01 0.28 49.00 25 4.52 10 36.50 60 154.00 75 34.42 30 36.98 50 32.71 25 97.00 80 20B 46.00 50 900B 1.08 4.00 55.00 35 -

-

Performance of SR Pharma and Bio Tech Index

% Change 0.45 5-Day High 1,620.29 5-Day Low 1,612.06 2011 Div BR (%) (%)

10B 25B325.00 -

-

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

59.85

Total Assets (Rs in mn)

1,072.73

MA (10-day)

2.55

Total Equity (Rs in mn)

1,015.70

MA (100-day)

2.99

Revenue (Rs in mn)

MA (200-day)

3.42

Interest Expense

1st Support

2.60

Loss after Taxation

2nd Support

2.47

EPS 10 (Rs)

1st Resistance

2.88

Book value / share (Rs)

2nd Resistance

3.03

PE 11 E (x)

Pivot

2.75

PBV (x)

0.72 0.07 (1,616.83) (4.195) 2.64 1.06

TRG closed up 0.19 at 2.79. Volume was 153 per cent above average (trending) and Bollinger Bands were 54 per cent narrower than normal.

The company's loss after taxation stood at Rs47.542 million which translates into a Loss Per Share of Rs0.12 for the nine months of fiscal year (9MFY11).

TRG is currently 18.1 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 moderate flows of volume into TRG (mildly bullish).

Trend forecasting oscillators are currently bullish on TRG.

Dewan Farooque Motors Limited

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

45.92

Total Assets (Rs in mn)

MA (10-day)

1.64

Total Equity (Rs in mn)

(747.01)

MA (100-day)

1.96

Revenue (Rs in mn)

1,025.34

MA (200-day)

1.80

Interest Expense

1st Support

1.50

Loss after Taxation

2nd Support

1.42

EPS 10 (Rs)

1st Resistance

1.73

4,204.55

8.92 (437.50) (4.917)

Book value / share (Rs)

2nd Resistance

1.88

PE 11 E (x)

Pivot

1.65

PBV (x)

(8.40) (0.20)

DFML closed up 0.02 at 1.65. Volume was 496 per cent above average (trending) and Bollinger Bands were 31 per cent narrower than normal.

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

DFML is currently 8.1 per cent below its 200-day moving average and is displaying a downward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of DFML at a relatively equal pace.

Trend forecasting oscillators are currently bearish on DFML.

Soneri Bank Limited

% Change 2.38 5-Day High 761.34 5-Day Low 728.47

PHARMA AND BIO TECH

Change 7.25 Market cap 33,032.08 mn Div Yield (%) 16.11

Last 60 days High Low 13.41 239.00 52.25 10.84 124.95 547.70 144.99

-

HOUSEHOLD GOODS

Performance of SR Industrial Engineering Index Open 1,613.04 Turnover 116,745 P/E (x) 8.16

140 74.85 7227 216.30 3408 153.93 303 37.99 752034 2.45 1413 206.99 3482 26.17 152464 4.50 1303 4.60 2215 10.88 10035 238.98 168 76.90 200 1.74

High Low 2,133.81 2,077.20 Total cos Defaulter cos 61 16 P/BV (x) ROE (%) 13.52 30.30

0.88 14.00 15.00 15.00 15.00 1.00 1.24 51.70 54.20 49.12 49.37 -2.33 7.95 8.95 8.40 8.40 0.45 46.19 64.21 66.00 64.19 64.21 0.00 0.82 7.85 8.25 8.00 8.10 0.25 2.30 2.60 2.54 2.55 0.25 - 38.00 38.00 38.00 38.00 0.00 4.24 23.98 24.00 23.80 23.84 -0.14 4.98 12.35 12.38 12.20 12.35 0.00 - 10.14 11.14 9.14 10.00 -0.14 0.65 9.94 10.94 10.90 10.94 1.00 1.47 83.00 83.95 80.51 82.75 -0.25 0.46 3.40 2.55 2.45 2.47 -0.93 0.37 3.22 3.50 3.10 3.44 0.22 11.40 65.00 66.66 64.01 66.00 1.00 5.72 20.92 20.99 20.00 20.99 0.07 1.73 15.16 16.16 15.81 16.14 0.98 3.48 3.88 3.50 3.52 0.04 5.68 2.23 2.50 2.50 2.50 0.27 0.30 4.10 4.25 4.15 4.25 0.15 19.09 2.35 2.99 2.10 2.10 -0.25 2.25 12.58 12.50 12.25 12.25 -0.33 0.44 6.03 6.50 6.00 6.24 0.21 19.11 5253.68 5300.00 5100.00 5167.00 -86.68 7.00 7.50 7.45 7.50 0.50

CONSTRUCTION AND MATERIALS High Low 877.96 859.12 Total cos Defaulter cos 37 6 P/BV (x) ROE (%) 0.46 7.10

-

Performance of SR Household Goods Index

Performance of SR Construction and Materials Index Open 861.57 Turnover 5,067,355 P/E (x) 6.46

2011 Div BR (%) (%)

-

FOOD PRODUCERS

-

% Change 1.10 5-Day High 1,022.81 5-Day Low 1,004.62

71.90 71.60 72.72 0.00 213.00 209.75 211.06 1.68 148.50 147.71 147.83 -0.22 31.07 31.06 32.49 0.00 1.80 1.57 1.65 0.02 204.50 194.90 199.95 1.96 23.50 23.00 23.06 -0.14 3.45 3.10 3.25 0.20 3.54 3.25 3.52 0.09 9.60 9.25 9.38 -0.13 232.53 221.00 222.89 1.43 69.00 66.20 68.90 0.00 1.44 1.44 1.40 0.00

Open 2,116.04 Turnover 212,069 P/E (x) -

INDUSTRIAL METALS AND MINING High Low 1,033.07 1,013.20 Total cos Defaulter cos 7 1 P/BV (x) ROE (%) 1.10 33.10

40 15

Performance of SR Food Producers Index

Performance of SR Industrial Metals and Mining Index Open 1,011.66 Turnover 240,377 P/E (x) 3.31

2010 Div BR (%) (%)

AUTOMOBILE AND PARTS

Company

High Low 1,867.69 1,845.83 Total cos Defaulter cos 36 6 P/BV (x) ROE (%) 3.10 35.00

% Change 2.67 5-Day High 723.43 5-Day Low 697.92

Performance of SR Automobile and Parts Index

Performance of SR Chemicals Index

Company

TRG Pakistan Limited

Performance of SR Industrial Transportation Index

Close Change 1,519.35 5.93 Listed cap Market cap 65,194.15 mn 1,128,242.97 mn Payout (%) Div Yield (%) 55.94 5.28

Attock Petroleum 691 6.87 378.29 Attock Refinery 853 4.12 124.41 BYCO Petroleum 3921 9.14 Mari Gas Company 735 4.26 103.04 National Refinery 800 4.61 332.78 Oil & Gas Development 43009 10.24 151.05 Pak Petroleum 11950 7.82 212.94 Pak Oilfields 2365 7.34 331.35 Pak Refinery Limited 350 47.46 84.81 P.S.O XD 1715 4.10 285.58 Shell Gas LPG 226 - 22.76 Shell Pakistan 685 7.85 216.52

Open 1,852.96 Turnover 14,233,871 P/E (x) 8.87

Alert ! Unusual Movements

INDUSTRIAL TRANSPORTATION

Performance of SR Oil and Gas Index Open 1,513.42 Turnover 4,064,406 P/E (x) 10.60

KSE 30 Index

Open 961.19 Turnover 23,024 P/E (x) 6.40 Company Abbott (Lab) XD Ferozsons (Lab) GlaxoSmithKline Highnoon (Lab) IBL HealthCare Ltd Searle Pak

Paid up Cap(mn) 979 250 1963 182 200 306

High Low 974.18 960.46 Total cos Defaulter cos 9 P/BV (x) ROE (%) 1.43 22.31

Close 966.79 Listed cap 3,904.20 mn Payout (%) 44.54

Change 5.60 Market cap 31,431.63 mn Div Yield (%) 6.96

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

5.70 7.54 10.63 6.06 4.06 5.85

92.99 91.00 73.92 26.42 9.52 58.57

93.75 92.25 74.51 26.85 10.49 60.00

92.50 90.95 73.00 26.20 9.50 59.99

93.00 0.01 91.03 0.03 74.38 0.46 26.20 -0.22 9.90 0.38 60.00 1.43

1226 1755 11214 5418 2006 1400

94.00 99.49 90.00 33.50 12.80 66.15

81.00 86.26 68.65 24.51 9.35 58.05

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

% Change 0.58 5-Day High 966.79 5-Day Low 954.15 2011 Div BR (%) (%)

20B 12.50 15B 10B -

-

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

55.63

Total Assets (Rs in mn)

95,310.27

MA (10-day)

6.05

Total Equity (Rs in mn)

7,803.20

MA (100-day)

6.55

Revenue (Rs in mn)

9,337.28

MA (200-day)

6.62

Interest Expense

6,602.78

1st Support

6.00

Profit after Taxation

2nd Support

5.80

EPS 09 (Rs)

1st Resistance

6.40

Book value / share (Rs)

2nd Resistance

6.60

PE 10 E (x)

3.13

Pivot

6.20

PBV (x)

0.40

145.35 0.29 15.55

SNBL closed up 0.18 at 6.25. Volume was 186 per cent above average (trending) and Bollinger Bands were 60 per cent narrower than normal.

The company's profit after taxation stood at Rs303.387 million which translates into an Earning Per Share of Rs0.50 for the 1st quarter of current calendar year (1QCY11).

SNBL is currently 5.5 per cent below its 200-day moving average and is displaying a downward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume out of SNBL (mildly bearish). Trend forecasting oscillators are currently bearish on SNBL.

WorldCall Telecom Limited

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

53.58

Total Assets (Rs in mn)

17,566.02

MA (10-day)

2.09

Total Equity (Rs in mn)

11,379.05

MA (100-day)

2.51

Revenue (Rs in mn)

8,408.28

MA (200-day)

2.58

Interest Expense

1st Support

2.13

Loss after Taxation

2nd Support

2.04

EPS 09 (Rs)

(0.57)

1st Resistance

2.29

Book value / share (Rs)

523.03

13.22

2nd Resistance

2.36

PE 10 E (x)

Pivot

2.20

PBV (x)

(490.82)

0.17

WTL closed up 0.11 at 2.25. Volume was 33 per cent above average and Bollinger Bands were 30 per cent narrower than normal. The company's loss after taxation stood at Rs182.323 million which translates into a Loss Per Share of Rs0.21 for the 1st quarter of current calendar year (1QCY11).

WTL is currently 12.5 per cent below its 200-day moving average and is displaying a downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume out of WTL (mildly bearish).

Trend forecasting oscillators are currently bearish on WTL.

BOOK CLOSURES Company

From

To

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 # (TFC) Engro Fertiliser Crescent Steel (Un-Consolidated) Lotte Pakistan Pta # PTCL

26-May 27-May 27-May 28-May 28-May 28-May 29-May 30-May 31-May 02-Jun 03-Jun 04-Jun 04-Jun 06-Jun 06-Jun 08-Jun 08-Jun 10-Jun 10-Jun 11-Jun 14-Jun

02-Jun 02-Jun 02-Jun 03-Jun 03-Jun 03-Jun 04-Jun 06-Jun 06-Jun 09-Jun 10-Jun 10-Jun 17-Jun 14-Jun 15-Jun 14-Jun 14-Jun 16-Jun 20-Jun 21-Jun

D/B/R 25(R) 30(I) 10(II) 17.5(I) 15(II)

Spot AGM/Date 20-May 25-May 31-May 03-Jun 06-Jun

02-Jun 30-May 04-Jun 06-Jun 06-Jun 10-Jun 10-Jun 15-Jun 15-Jun 14-Jun 16-Jun -

INDICATIONS # Extraordinary General Meeting

OTHER SECTORS Symbols Pakistan Cables TRG Pakistan Ltd. Murree Brewery Co. Shakarganj Food Shezan International Grays of Cambridge Pak Tobacco Co. Pak Hotels P.I.A.C.(A) AKD Capital Limited Pace (Pak) Ltd. Netsol Technologies

Open 49.95 2.6 108.05 2.5 145.69 36.95 96.05 33 2.26 38.08 2.81 21.52

High 51 2.9 109.99 2.5 152.9 38.79 94 31.5 2.38 38.9 2.92 22.25

Low Close 49.65 2.62 107 2.4 148.1 37.9 94 31.5 2.3 38.4 2.81 21.83

50.1 2.79 108.29 2.5 152.85 38.79 94 31.5 2.33 38.4 2.86 22.01

Change 0.15 0.19 0.24 0 7.16 1.84 -2.05 -1.5 0.07 0.32 0.05 0.49

Vol 1222 2821661 3731 14000 1003 1333 500 115629 27724 1767 404210 1213122

7

Thursday, May 26, 2011

FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 984.65 Turnover 2,233,398 P/E (x) 5.45 Paid up Cap(mn)

Company

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

PE

78 29.30 37740 14.04 3000 3.00 8606 6175 -

Open

High Low 999.34 982.38 Total cos Defaulter cos 5 P/BV (x) ROE (%) 0.70 12.84

High

30.22 17.07 1.65 2.14 2.46

Low

30.49 17.24 1.78 2.27 2.69

28.71 17.05 1.65 2.11 2.42

Close Chg 30.47 17.13 1.77 2.25 2.66

0.25 0.06 0.12 0.11 0.20

Close 992.89 Listed cap 50,077.79 mn Payout (%) 62.56

Volume 3071 934908 425468 869951 66229

Change 8.24 Market cap 68,997.30 mn Div Yield (%) 11.47

Last 60 days High Low 57.31 18.39 2.35 2.89 3.50

28.71 16.05 1.40 1.94 2.41

% Change 0.84 5-Day High 992.89 5-Day Low 970.43

2010 Div BR (%) (%) 80 17.5 1 -

2011 Div BR (%) (%)

- 15.00 -

-

Ask Gen Insurance

280

3.61

9.50

10.00

10.00

9.67 0.17

730

Atlas Insurance

443

3.38

26.89

27.30

27.00

27.21 0.32

Central Insurance

391

1.51

68.91

69.99

68.04

69.12 0.21

Century Insurance

457

4.72

8.31

8.74

8.25

8.49 0.18

Crescent Star Insurance

121

7.36

3.02

3.89

2.02

1250 12.88

32.88

34.52

33.25

EFU General Insurance Habib Insurance IGI Insurance XD New Jub Insurance Pak Reinsurance XD

Paid up Cap(mn)

PE

Open

High

Low

11572 1560 7932 1695 126 8803 Nishat Chunian Power LtdSPOT 3673 Nishat Power Ltd 3541 Sitara Energy Ltd 191 Southern Electric 1367 Tri-star Power XD 150

7.63 4.99 2.48 5.60 3.04 2.47 6.05 -

38.18 1.22 2.35 17.25 2.75 43.72 16.75 17.19 21.80 1.43 0.95

38.25 1.24 2.40 17.00 3.30 43.88 17.00 17.70 22.25 1.49 1.00

37.76 1.19 2.31 16.50 2.60 43.35 16.70 17.05 21.32 1.35 0.97

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

Close 1,368.82 Listed cap 95,369.29 mn Payout (%) 104.13

Change -5.70 Market cap 106,698.20 mn Div Yield (%) 7.62

Close Chg

Volume

Last 60 days High Low

37.98 1.20 2.35 16.51 3.20 43.64 16.92 17.30 21.84 1.37 1.00

1244122 136454 217459 5178 93549 67112 2037585 3087825 1261 96879 7650

40.75 1.70 2.89 18.25 4.95 44.99 17.00 17.75 23.26 1.98 1.37

-0.20 -0.02 0.00 -0.74 0.45 -0.08 0.17 0.11 0.04 -0.06 0.05

36.12 0.97 2.25 15.41 2.11 40.26 14.30 15.45 15.35 1.13 0.31

% Change -0.41 5-Day High 1,374.52 5-Day Low 1,333.25

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

2011 Div BR (%) (%)

7.8R -

25.00 10.00 30.00 10.00 -

-

Open 1,317.56 Turnover 164,343 P/E (x) 8.54 Paid up Cap(mn)

Company Sui North Gas Sui South Gas

High Low 1,325.48 1,306.57 Total cos Defaulter cos 2 P/BV (x) ROE (%) 0.97 11.41

Close 1,310.34 Listed cap 12,202.80 mn Payout (%) 66.79

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

5491 13.59 8390 5.05

19.03 22.57

19.15 22.70

19.00 22.25

19.02 -0.01 22.35 -0.22

37885 126458

21.87 26.15

17.64 20.52

% Change -0.55 5-Day High 1,317.56 5-Day Low 1,268.15

2010 Div BR (%) (%) 20 15

2011 Div BR (%) (%)

25B

-

-

BANKS Performance of SR Banks Index Open 1,150.20 Turnover 28,769,728 P/E (x) 7.42 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 National Bank 16818 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

6.12 61.95 5.46 11.98 5.69 10.63 6.02 28.48 2.53 5.59 5.15 10.46 3.76 7.62 9.75 7.53 120.30 5.11 17.50 50.60 2.41 1.44 8.42 208.01 6.00 17.50 4.17 51.92 1.50 24.38 1.92 17.81 2.82 3.13 6.07 6.85 8.41 2.84 7.59 64.58

High

High Low Close 1,169.09 1,145.02 1,159.84 Total cos Defaulter cos Listed cap 27 - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 1.03 13.94 40.49 Low

Close Chg

62.50 61.95 62.07 0.12 12.35 11.90 12.01 0.03 10.94 10.57 10.81 0.18 28.50 28.30 28.42 -0.06 5.69 5.50 5.66 0.07 6.15 5.12 6.15 1.00 3.89 3.75 3.87 0.11 10.27 9.75 10.06 0.31 121.50 120.10 120.61 0.31 18.20 17.60 17.80 0.30 2.54 2.39 2.53 0.12 1.46 1.38 1.45 0.01 209.40 207.00 208.30 0.29 18.25 17.53 17.53 0.03 53.30 51.92 53.00 1.08 1.74 1.54 1.71 0.21 2.05 1.90 1.95 0.03 2.88 2.80 2.85 0.03 6.40 6.00 6.25 0.18 8.60 8.02 8.50 0.09 2.98 2.80 2.84 0.00 64.89 64.05 64.57 -0.01

Volume

Change 9.64 Market cap 685,982.59 mn Div Yield (%) 5.46

Last 60 days High Low

5491 70.00 1533102 14.90 3396678 11.20 281338 36.42 9067 6.25 11880813 7.60 8157 4.18 293854 14.44 40753 131.00 59762 25.00 109319 3.16 184320 1.69 439176 230.80 55703 19.70 2612406 81.78 6773863 2.70 76050 2.20 545621 3.00 297460 6.99 65892 9.90 89218 3.58 100826 67.25

57.00 10.90 9.01 26.95 3.30 4.51 3.26 9.00 104.16 17.00 2.06 1.16 192.20 16.26 49.57 1.47 1.62 2.02 5.31 6.50 2.36 56.70

% Change 0.84 5-Day High 1,159.84 5-Day Low 1,136.85

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 Performance of SR Non Life Insurance Index Open 742.40 Turnover 2,571,806 P/E (x) 10.90 Paid up Cap(mn)

Company

Adamjee Insurance XD

1237

High Low 758.49 736.87 Total cos Defaulter cos 34 22 P/BV (x) ROE (%) 0.57 5.20

Close 753.26 Listed cap 11,111.34 mn Payout (%) 79.54

Change 10.86 Market cap 46,468.59 mn Div Yield (%) 7.30

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

7.11

65.43

66.80

64.98

66.25 0.82

563505

83.40

62.00

% Change 1.46 5-Day High 753.26 5-Day Low 726.76

2010 Div BR (%) (%) 25

2011 Div BR (%) (%)

-

-

-

-

2115

42.90

26.00

40

20B

3086

115.90

65.00

25

50B

-

-

2204

10.85

8.00

10

-

-

-

2.65 -0.37

5136

4.68

2.02

-

-

-

-

34.52 1.64

73201

38.90

29.01

12.5

-

-

-

8.05

11.27

11.69

11.31

11.59 0.32

5293

16.05

11.00

25 12.5B

-

-

5.91

71.67

71.40

71.10

71.40 -0.27

1268

103.00

65.10

30

55B 10.00

-

58.91

58.50

57.50

58.32 -0.59

5676

74.90

51.16

20

25B

-

-

17.49

17.99

17.20

17.86 0.37

1900584

20.80

12.43

30

-

-

-

9.42

11.18

12.00

10.25

11.30 0.12

4336

13.00

7.08

-

-

-

-

3.71

8.10

8.30

8.15

8.30 0.20

2708

13.27

8.00

25

-

-

-

1.81

5.45

5.35

5.20

5.22 -0.23

1901

8.49

4.75

-

24B

-

-

6.20

PICIC Ins Ltd

350

Premier Insurance XD

303

United Insurance

496

LIFE INSURANCE Performance of SR Life Insurance Index Open 829.34 Turnover 24,016 P/E (x) 5.38

High Low 853.78 822.22 Total cos Defaulter cos 4 P/BV (x) ROE (%) 3.46 3.85

Close 844.91 Listed cap 2,290.72 mn Payout (%) 355.53

Change 15.57 Market cap 9,418.75 mn Div Yield (%) 3.95

% Change 1.88 5-Day High 844.91 5-Day Low 811.87

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

American Life EFU Life Assurance

500 850

6.22 8.61

16.13 59.78

16.18 62.00

16.18 60.00

16.18 0.05 61.32 1.54

9000 10954

17.98 64.50

14.02 50.70

50

-

-

-

New Jub Life Insurance

627 14.24

52.50

52.99

50.05

52.98 0.48

4061

54.00

42.98

15

-

-

-

Company

2010 Div BR (%) (%)

2011 Div BR (%) (%)

FINANCIAL SERVICES Performance of SR Financial Services Index Open 295.62 Turnover 17,720,472 P/E (x) 11.61 Paid up Cap(mn)

Company

Change -7.22 Market cap 29,194.92 mn Div Yield (%) 7.82

-

989 10.25

GAS WATER AND MULTIUTILITIES Performance of SR Gas Water and Multiutilities Index

-10B 25R

450

ELECTRICITY High Low 1,380.83 1,359.09 Total cos Defaulter cos 15 1 P/BV (x) ROE (%) 1.28 9.35

9.15

970 3000

Performance of SR Electricity Index Open 1,374.52 Turnover 6,995,124 P/E (x) 13.66

12.49

AMZ Ventures Arif Habib Investments Arif Habib Limited

PE

225 360

0.88 5.69

450 17.60

Open

High Low 317.68 294.41 Total cos Defaulter cos 41 6 P/BV (x) ROE (%) 0.20 0.91

High

0.41 22.56

0.45 22.50

Low 0.40 22.00

Close Chg 0.42 0.01 22.31 -0.25

73016 39670

15.89

16.89

15.89

16.72 0.83

3.14 1.41

22.39 1.75

23.50 1.58

22.60 1.58

23.42 1.03 1.58 -0.17

250 441

-

1.28 2.00

1.47 2.19

1.26 2.00

1.40 0.12 2.00 0.00

13001 2001

First National Equity

575

-

2.49

2.68

2.00

2.67 0.18

1173

0.93 24.97

Low

Close

22.25

22.64

Vol

0.39 1136500 0.52

598000

53.45

51.95

53.09

1.11

472000

72.28

72.00

70.81

71.69

-0.59

338000

-

LUCK-MAY

70.82

70.77

-0.05

328000

-

-

NML-JUN

59.29

60.07

0.78

276000

NML-MAY

58.84

60.00

58.91

59.68

0.84

241000

-

ENGRO-MAY 193.73

195.75

193.21

194.98

1.25

5.80

1.56

-

-

- 140R

4.00 9.29 1.20

1.34 5.15 0.22

11.5 -

-

-

-

3.67 2.00 10.05

2.45 1.24 4.82

10

10B -

-

-

0.19 0.64 0.09 0.15 0.15

623496 32750 152689 25708 39554

3.98 27.00 6.43 4.97 6.40

2.31 16.42 4.53 3.10 5.00

50 -

-

-

-

1.82 0.13 1.17 -0.02

399368 401028

2.49 2.00

1.45 0.83

-

-

-

-

High Low 1,541.98 1,500.97 Total cos Defaulter cos 52 11 P/BV (x) ROE (%) 0.45 2.21

Close 1,521.58 Listed cap 29,771.58 mn Payout (%) 104.74

71.35

70.75

60.49

59.45

234000

NBP-JUN

52.37

53.75

52.40

53.48

1.11

221500

POL-JUN

331.98

335.90

334.15

335.19

3.21

220000

POL-MAY

330.98

334.30

332.64

333.35

2.37

193500

ENGRO-JUN 195.29

197.25

194.50

196.52

1.23

180500

0.19

109500

FFBL-MAY

42.52

42.78

42.50

42.71

PPL-MAY

213.09

214.50

213.25

213.99

0.90

97500

MCB-MAY

208.02

209.50

207.50

208.55

0.53

90500

FFBL-JUN

41.60

42.00

41.50

41.99

0.39

83000

PPL-JUN

213.20

215.00

213.50

214.16

0.96

78000

ATRL-MAY

124.34

126.60

124.50

125.45

1.11

62500

PTC-MAY

17.06

17.29

17.03

17.20

0.14

56500

FFC-JUN

141.98

142.94

141.50

142.42

0.44

50000

FFC-MAYB

140.88

141.11

140.50

140.97

0.09

MCB-JUN

206.20

207.85

205.51

206.91

ATRL-JUN

125.26

127.00

125.00

126.75

1.49

28000

UBL-JUN

65.61

65.25

65.00

65.00

-0.61

27500

UBL-MAY HUBC-MAY

0.71

50000 35500

65.00

65.00

64.50

64.50

-0.50

25500

15.68

15.75

15.52

15.72

0.04

7000

38.18

38.00

38.00

38.00

-0.18

500

MTS LEVERAGE POSITION

Performance of SR Equity Investment Instruments Index

Paid up Cap(mn)

Change

22.89

51.98

LUCK-JUN

PTC-JUN

Change 19.72 Market cap 19,215.39 mn Div Yield (%) 8.08

% Change 1.31 5-Day High 1,521.58 5-Day Low 1,489.26

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

2010 Div BR (%) (%)

2011 Div BR (%) (%)

AL-Meezan Mutual F. Atlas Fund of Funds B R R Guardian Mod.

1375 525 780

4.59 1.76 2.33

10.54 6.50 2.04

10.71 6.60 2.30

10.56 6.60 2.05

10.70 0.16 6.60 0.10 2.24 0.20

138203 70001 97436

11.20 6.94 2.91

9.61 5.22 1.29

18.5 2.2 0

-

5.00 -

-

Crescent St Modaraba Equity Modaraba First Capital Mutual F. First Dawood Mutual F.

200 524 300 581

4.21 7.11 1.89 1.32

0.58 1.50 2.50 2.01

0.59 1.60 2.50 2.20

0.49 1.34 2.50 2.01

0.59 1.35 2.50 2.20

0.01 -0.15 0.00 0.19

56050 1004 50000 61876

0.84 2.50 3.95 2.39

0.39 1.22 1.51 1.79

1.2 -

-

-

-

Golden Arrow Habib Modaraba JS Growth Fund XD JS Value Fund XD Pak Oman Advantage

760 1008 3180 1186 1000

2.19 4.11 2.23 0.61 -

3.28 7.75 6.50 5.50 5.75

3.30 7.96 6.60 5.90 6.69

3.25 7.94 6.50 5.50 4.75

3.30 7.94 6.50 5.78 6.69

0.02 0.19 0.00 0.28 0.94

39891 1010 1002181 26978 600

3.95 8.44 7.45 6.68 9.75

3.02 7.00 5.41 4.75 4.75

17 21 12.5 10 1.04

-

5.00 -

-

Paramount Modaraba PICIC Energy Fund PICIC Growth Fund PICIC Inv Fund Prud Modaraba 1st Punjab Modaraba Stand Chart Modaraba

59 1000 2835 2841 872 340 454

5.48 2.15 2.67 2.27 1.60 5.58

10.02 7.32 12.83 5.74 0.82 0.68 10.10

10.11 7.40 13.15 5.77 0.88 1.00 10.10

10.11 7.25 12.90 5.60 0.83 1.00 9.93

10.02 7.29 13.00 5.75 0.88 1.00 10.10

0.00 -0.03 0.17 0.01 0.06 0.32 0.00

133 26581 314348 65311 19757 1678 2976

10.48 8.50 13.80 6.56 1.10 1.99 10.50

8.05 6.92 12.00 5.10 0.80 0.50 9.50

18 10 20 10 3 1 17

- 10.00 - 12.50 - 7.50 -

-

Company

22.43

NBP-MAY

EQUITY INVESTMENT INSTRUMENTS Open 1,501.86 Turnover 1,976,060 P/E (x) 20.15

23.15

-

-

1000 6801 46771

1.68 0.83

High 22.87

22.37

-

31435 8502 15612301

1.88 1.37

Open 22.25

DGKC-MAY

-

3.00 0.10 8.00 0.32 0.35 -0.05

1.69 1.19

FUTURE CONTRACTS Symbols DGKC-JUN

-

2.83 0.04 1.46 0.00 8.12 0.61

6.50 0.29

100 81 73 57 52 51 50 50 50 41 40 37 35 23 22 20 15 13 12 11 11 11 10 10 5 5 5 5 5 5 4 3 3 2 2 2 2 2 2 2 2 2 2

-

2.90 8.00 0.29

775 586

Vol

0.00 0.00 0.00 0.00 0.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00 -44.45 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

30 -

2.80 1.46 7.50

Pervez Ahmed Sec Trust Inv Bank

Change

1.15 1.60

3.00 8.10 0.49

-

0.49 59.05 2.10 38.80 12.60 18.15 14.50 0.59 0.82 42.54 1.60 10.05 3511.19 5.03 6.50 23.00 18.25 40.93 81.67 5.12 1.30 53.54 7.71 5.63 23.10 27.31 3.04 2.52 118.00 816.00 2.85 2.20 2.65 5.90 2.79 2.50 1.47 1.25 1.72 1.25 0.73 0.93 9.04

12.01

2.90 1.56 8.24

3.04 21.89 5.54 3.65 5.55

20B

-

Close

19.96 1.06

2.90 7.68 0.40

2.83 20.46 5.35 3.60 5.31

20B

Low 0.49 58.00 2.10 39.00 13.46 18.15 14.50 0.57 0.94 42.21 2.19 9.10 3500.00 4.68 6.55 23.50 18.74 40.00 77.59 5.12 0.92 52.50 8.71 5.60 24.25 26.20 3.35 2.51 118.91 855.23 2.70 1.51 3.00 5.10 2.50 2.10 1.85 1.49 1.90 1.29 1.04 0.85 8.45

1.99 3.00

2.79 1.46 7.51

3.10 22.00 5.75 3.85 5.60

-

High 0.49 59.35 2.19 39.99 13.46 18.15 14.50 0.57 0.94 43.20 2.19 9.10 3549.00 5.54 6.55 23.50 18.74 42.97 77.59 5.87 1.28 52.50 8.71 5.60 24.25 28.60 3.35 2.77 118.91 855.23 2.70 2.01 3.00 5.49 2.84 2.99 1.85 1.49 1.90 1.29 1.04 0.85 9.25

22.80

215 600 21.62 2849 -

2.85 21.25 5.45 3.50 5.40

0.34 21.00

2011 Div BR (%) (%)

0.49 59.05 2.10 38.80 12.60 17.15 14.50 0.59 0.82 42.54 1.60 10.05 3555.64 5.03 6.50 23.00 18.25 40.93 81.67 5.12 1.30 53.54 7.71 5.63 23.10 27.31 3.04 2.52 118.00 816.00 2.85 2.20 2.65 5.90 2.79 2.50 1.47 1.25 1.72 1.25 0.73 0.93 9.04

26.14 2.95

3166 626 7633

508 500 6.29 1000 46.17 1000 821 3.36

2010 Div BR (%) (%)

Open

209150

Grays Leasing Invest and Fin Sec Invest Bank

JOV and CO JS Global Cap JS Investment KASB Securities Orix Leasing

% Change 5.22 5-Day High 311.06 5-Day Low 280.47

Symbols SHTM MRNS MYBL KSBP SHNI QUAT AHTM GENP SPLC MIRKS EMCO MSCL NESTLE SMTM FUDLM SAZEW FRSM PMRS ISIL SSIC TSMF TSML JOPP SMCPL GVGL MERIT PTEC SCLL SFL WYETH NMBL BGL FECM AGSML CSUML DSML FCONM FFLM IGIBL MODAM PAKMI RAVT SHSML

4873773 1000

Ist Cap Securities Ist Dawood Bank Jah Siddiq Co

0.65 -

Change 15.43 Market cap 14,825.62 mn Div Yield (%) 4.55

Last 60 days High Low

Volume

Dawood Equities Escorts Bank

Arif Habib Corp 3750 Cap Assets Leasing XD 107

Close 311.06 Listed cap 30,336.44 mn Payout (%) 99.56

UPTO 100 VOLUME

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

Total Volume 570,920 16,375 55,574 286,500 21,200 1,032,037 297,290 44,212 105,751 8,500 23,000 3,750 3,543,040 59,200 604,378 410,000 2,900 82,000 4,500 310,700 66,100 110,380 112,275 26,525 26,430 12,155 7,835,692

Total Value 8,963,293 811,427 479,034 1,282,099 1,957,041 8,090,321 4,923,601 6,375,290 3,333,370 891,939 645,376 120,763 39,753,423 9,113,546 23,058,126 7,345,576 47,898 3,555,928 505,868 3,864,131 16,459,586 17,270,043 23,852,442 334,424 446,295 576,487 184,057,327

MTS Rate 18.00 16.49 17.40 19.72 16.00 19.13 15.50 15.75 18.00 16.24 16.02 16.00 16.00 21.53 20.00 16.00 16.00 20.00 16.20 15.98 16.00 16.20

BOARD MEETINGS

Dera Ghazi Khan Cement Co Ltd

KSE 100 INDEX

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position

63.11

Support 1

12,123.25

MA (5-day)

12,036.31

Support 2

12,078.35

MA (10-day)

11,982.80

Resistance 1

12,215.20

MA (100-day)

11,993.80

Resistance 2

12,262.30

Arif Habib Ltd

Target Price

Recommendations

30.1

Buy

Arif Habib Ltd

28.72

Buy

AKD Securities Ltd

11.75

Positive

TFD Research

14.01

AKD Securities Ltd TFD Research

36.45

Leverage Position

RSI (14-day) 49.99 MTS Shares `000 297.29 MA (200-day) 11,285.24 Pivot 12,170.35 MA (10-day) 22.05 MTS Rs `000 4,923.60 25.74 MTS Rate 15.50 KSE 100 INDEX closed up 37.54 points at 12,168.12. Volume was MA (100-day) MA (200-day) 26.35 ** NOI Rs (mn) 162.11 51 per cent above average and Bollinger Bands were 46 per cent Free Float Shares (mn) 200.80 Free Float Rs (mn) 4,590.39 narrower than normal. As far as resistance level is concern, the marTarget price for Dec-11 & **Net Open Interest in future market ket will see major 1st resistance level at 12,215.20 and 2nd resistDGKC closed up 0.47 at 22.86. Volume was 104 per cent above averance level at 12,262.30, while Index will continue to find its 1st supage and Bollinger Bands were 27 per cent narrower than normal. port level at 12,123.25 and 2nd support level at 12,078.35.

KSE 100 INDEX is currently 7.8 per cent above its 200-day moving DGKC is currently 13.1 per cent below its 200-day moving average average and is displaying an upward trend. Volatility is relatively nor- and is displaying a downward trend. Volatility is relatively normal as mal as 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 DGKC at a INDEX at a relatively equal pace. Trend forecasting oscillators are relatively equal pace. Trend forecasting oscillators are currently currently bullish on INDEX. bearish on DGKC.

Nishat Mills Ltd

National Bank of Pakistan

Brokerage House

Target Price

TFD Research

Recommendations

Brokerage House

65

Buy

AKD Securities Ltd

64.99

Buy

TFD Research

Arif Habib Ltd AKD Securities Ltd

92.3

Recommendations

74.65

Buy

78.6

Positive

Leverage Position

48.54 MTS Shares `000 604.378 51.64 MTS Rs `000 23,058.13 66.50 MTS Rate 16.00 66.47 ** NOI Rs (mn) 84.53 Free Float Shares (mn) 398.12 Free Float Rs (mn) 21,100.48 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)

47.02 MTS Shares `000 82.00 58.15 MTS Rs `000 3,555.93 63.81 MTS Rate 16.00 57.68 ** NOI Rs (mn) 59.23 Free Float Shares (mn) 175.80 Free Float Rs (mn) 10,475.92 Target price for Dec-11 & **Net Open Interest in future market

Target Price

Recommendations

144

Hold

Recommendations

11.6

Hold

Arif Habib Ltd

Accumulate

AKD Securities Ltd

120.7

Positive

TFD Research

129.4

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

58.94 10.46 10.48 9.84 Free Float Shares (mn) 674.58

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

1,032.037 8,090.32 19.13 N/A 7,292.19

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

Technical Analysis

and Bollinger Bands were 34 per cent narrower than normal.

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

53.06 MTS Shares `000 8.50 141.56 MTS Rs `000 891.94 138.21 MTS Rate 16.24 123.92 ** NOI Rs (mn) 34.27 Free Float Shares (mn) 466.49 Free Float Rs (mn) 65,784.05 Target price for Dec-11 & **Net Open Interest in future market

Bollinger Bands were 77 per cent narrower than normal.

displaying a downward trend. Volatility is low as compared to the average displaying a downward trend. Volatility is relatively normal as compared to volatility over the last 10 trading sessions. Volume indicators reflect mod- the average volatility over the last 10 trading sessions. Volume indicators erate flows of volume into BAFL (mildly bullish). Trend forecasting oscilla- reflect volume flowing into and out of FFC at a relatively equal pace. Trend forecasting oscillators are currently bearish on FFC.

Hub Power Co Ltd

Brokerage House

Target Price

Recommendations

Brokerage House

Target Price

Hold

Arif Habib Ltd

AKD Securities Ltd

45.52

Accumulate

AKD Securities Ltd

42.1

TFD Research

44.25

Neutral

TFD Research

50.3

Arif Habib Ltd

42.2

Technical Analysis

Leverage Position

62.18 MTS Shares `000 105.751 41.77 MTS Rs `000 3,333.37 40.86 MTS Rate 18.00 35.83 ** NOI Rs (mn) 62.94 Free Float Shares (mn) 326.94 Free Float Rs (mn) 13,934.12 Target price for Dec-11 & **Net Open Interest in future market

Recommendations Buy Accumulate Positive

Technical Outlook

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

50

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

Leverage Position

61.14 37.05 37.99 36.56

MTS Shares `000 23.00 MTS Rs `000 645.38 MTS Rate ** NOI Rs (mn) 1.70 Free Float Rs (mn) 30,764.11 Target price for Dec-11 & **Net Open Interest in future market

Free Float Shares (mn) 810.01

NBP closed up 1.08 at 53.00. Volume was 3 per cent below average and NML closed up 0.78 at 59.59. Volume was 15 per cent above average and FFBL closed up 0.14 at 42.62. Volume was 70 per cent below average (con- HUBC closed down -0.20 at 37.98. Volume was 1 per cent below average Bollinger Bands were 75 per cent narrower than normal.

Bollinger Bands were 3 per cent wider than normal.

solidating) and Bollinger Bands were 66 per cent narrower than normal.

and Bollinger Bands were 42 per cent narrower than normal.

NBP is currently 20.0 per cent below its 200-day moving average and is NML is currently 3.2 per cent above its 200-day moving average and is dis- FFBL is currently 18.5 per cent above its 200-day moving average and is HUBC is currently 3.8 per cent above its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as compared to playing a downward trend. Volatility is relatively normal as compared to the displaying an upward trend. Volatility is extremely low when compared to displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators 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 reflect volume flowing into and out of NBP at a relatively equal pace. Trend reflect volume flowing into and out of NML at a relatively equal pace. Trend reflect moderate flows of volume into FFBL (mildly bullish). Trend forecast- reflect volume flowing into and out of HUBC at a relatively equal pace. forecasting oscillators are currently bullish on NBP.

forecasting oscillators are currently bearish on NML.

ing oscillators are currently bullish on FFBL.

Time

26-May 26-May 26-May 26-May 26-May 27-May 27-May 27-May 27-May 27-May 27-May 27-May 28-May 28-May 28-May 30-May 30-May 30-May 31-May 01-Jun

3:30 11:30 4:00 11:00 11:30 11:00 11:00 11:00 5:00 10:30 11:00 11:00 11:30 2:00 10:00 10:30 11:30 11:30 4:00 10:00

TECHNICAL LEVELS

Neutral

Leverage Position

BAFL is currently 9.8 per cent above its 200-day moving average and is FFC is currently 13.5 per cent above its 200-day moving average and is

tors are currently bearish on BAFL.

Date

Mirpurkhas Sugar Mills Al-Noor Sugar Mills Ltd Shahmurad Sugar Mills Ltd Mehran Sugar Mills Ltd Thal Industries Corp Ltd Shahtaj Sugar Mills Ltd Sanghar Sugar Mills Ltd Chashma Sugar Mills Ltd Dewan Sugar Mills Ltd The Premier Sugar Mills Ltd JDW Sugar Mills Ltd Baba Farid Sugar Mills Ltd Colony Sugar Mills Ltd Bawany Sugar Mills Ltd Ansari Sugar Mills Ltd Crescent Sugar Mills Ltd Shakarganj Mills Ltd Noon Sugar Mills Ltd Abdullah Shah Ghazi Sugar Mari Gas Company Ltd

Reduce

Technical Outlook

BAFL closed up 0.18 at 10.81. Volume was 77 per cent above average FFC closed up 0.04 at 141.02. Volume was 36 per cent above average and

Technical Outlook

Technical Outlook Technical Analysis

Target Price

Brokerage House

Target Price

Fauji Fertiliser Bin Qasim Ltd

Positive

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

Brokerage House

Technical Outlook Technical Analysis

Fauji Fertiliser Co

Bank Al-Falah Ltd

Company

Trend forecasting oscillators are currently bullish on HUBC.

Company Al-Abbas Cement Allied Bank Limited Attock Cement Arif Habib Corp Arif Habib Limited Adamjee Insurance Askari Bank Azgard Nine Attock Petroleum Attock Refinery Bank Al-Falah BankIslami Pak Bank.Of.Punjab Dewan Cement D.G.K.Cement Dewan Salman Dost Steels Ltd EFU General Insurance EFU Life Assurance Engro Corp Faysal Bank Fauji Cement Fauji Fert Bin Fauji Fertilizer Habib Bank Ltd Hub Power ICI Pakistan Indus Motors J.O.V.and CO Japan Power JS Bank Ltd Jah Siddiq Co Kot Addu Power K.E.S.C Lotte Pakistan Lucky Cement MCB Bank Ltd Maple Leaf Cement National Bank Nishat (Chunian) Netsol Technologies NIB Bank Nimir Ind.Chemical Nishat Mills Oil & Gas Dev. XD PACE (Pakistan) Ltd. Pervez Ahmed Sec P.I.A.C.(A) Pioneer Cement Pak Oilfields Pak Petroleum Pak Suzuki P.S.O. XD P.T.C.L.A Shell Pakistan Sui North Gas Sitara Peroxide Sui South Gas Telecard TRG Pakistan United Bank Ltd WorldCall Tele

RSI 1st 2nd (14-day) Support 52.25 2.55 2.40 53.61 61.85 61.60 53.62 53.10 52.85 58.03 22.85 22.25 57.72 16.10 15.50 44.01 65.20 64.20 55.53 11.85 11.65 55.69 6.15 5.75 59.50 378.55 377.10 56.22 124.60 123.65 58.88 10.60 10.40 52.77 3.80 3.70 65.70 5.45 4.80 45.84 1.45 1.40 49.16 22.45 22.05 49.82 2.30 2.25 57.03 1.85 1.70 59.34 33.70 32.85 65.02 60.20 59.10 46.64 193.35 191.95 52.49 9.80 9.50 49.00 4.05 4.00 61.73 42.40 42.15 52.81 140.35 139.70 50.85 120.00 119.35 60.61 37.75 37.50 54.36 157.35 156.70 55.94 218.40 213.95 60.09 2.90 2.70 50.28 1.15 1.10 54.44 2.45 2.35 44.21 7.65 7.20 60.33 43.35 43.10 43.98 2.30 2.25 46.10 15.15 15.05 53.72 70.45 70.10 57.54 207.05 205.85 44.65 2.05 2.00 47.86 52.20 51.35 49.86 25.05 24.30 52.43 21.80 21.60 45.41 1.60 1.45 43.00 2.40 2.35 46.34 58.95 58.35 63.70 150.90 150.40 48.04 2.80 2.75 58.26 1.70 1.60 44.14 2.30 2.25 51.01 5.10 4.95 63.68 332.10 331.15 63.76 213.05 212.25 53.37 67.05 65.25 66.40 286.10 284.95 56.75 17.05 16.95 74.22 217.35 213.95 53.80 18.95 18.90 55.04 18.05 17.75 50.81 22.15 22.00 60.89 1.70 1.60 59.00 2.65 2.50 57.75 64.10 63.65 52.99 2.15 2.05

1st

2nd

Resistance 2.90 3.05 62.40 62.70 53.60 53.85 23.75 24.05 17.10 17.50 67.05 67.85 12.30 12.55 6.95 7.25 382.20 384.40 126.30 127.05 10.95 11.15 3.95 4.00 6.50 6.85 1.55 1.60 23.20 23.60 2.45 2.55 2.10 2.20 34.95 35.35 62.20 63.10 195.90 197.10 10.30 10.55 4.15 4.20 42.80 43.00 141.70 142.35 121.40 122.15 38.25 38.50 158.80 159.60 229.95 237.00 3.15 3.25 1.25 1.30 2.60 2.65 8.40 8.70 43.90 44.15 2.40 2.45 15.45 15.60 71.30 71.80 209.45 210.65 2.15 2.20 53.55 54.10 26.20 26.60 22.25 22.45 1.80 1.85 2.50 2.55 60.10 60.60 152.20 153.00 2.90 2.95 1.90 2.00 2.40 2.45 5.30 5.40 334.50 335.95 214.65 215.40 69.85 70.85 288.45 289.70 17.25 17.35 222.85 224.90 19.10 19.20 18.55 18.85 22.60 22.90 1.80 1.85 2.90 3.05 64.95 65.35 2.30 2.35

Pivot 2.70 62.15 53.35 23.15 16.50 66.00 12.10 6.50 380.75 125.35 10.75 3.85 5.80 1.50 22.85 2.40 1.95 34.10 61.10 194.50 10.05 4.10 42.60 141.05 120.75 38.00 158.15 225.45 3.00 1.20 2.50 7.95 43.60 2.35 15.30 70.95 208.25 2.10 52.75 25.45 22.05 1.65 2.45 59.45 151.70 2.85 1.80 2.35 5.20 333.55 213.80 68.05 287.35 17.15 219.45 19.05 18.30 22.45 1.75 2.75 64.50 2.20

8

Thursday, May 26, 2011

PTDC motels open to welcome tourists

SIDNEY: Air Asia CEO Tony Fernandes answers a question during a news conference in central Sydney.-Reutes

S’pore Air to set up low-budget carrier

Thai Airways board approves new regional airline

n New

BANGKOK: The board of Thai Airways International Pcl on Friday approved in principle a plan to set up a new regional airline to tap strong demand for air traffic in Asia and win back market share in the face of growing competition in the region.

The new mid-tier airline, provisionally called Thai Wing, is expected to start operations within the region and on some domestic routes in March or April 2012, Chairman Ampon Kittiampon told a news conference.

"We will try to match all the routes that our rivals fly to," Ampon said, adding it would hold a competition to choose the official name of the new airline.

The wholly owned mid-tier carrier will operate with seven planes -- five leased Boeing 737s and two other leased aircraft -- in the first year and aims to have a fleet of 11 within three years, Ampon said.

Its schedule will cover journeys with an average flight time of 2.5 to 3.0 hours, he said.

"We should make a profit in the first year of operation because we will lease all the planes," Ampon said. He expected the new airline's cabin factor -- the percentage of seats sold -- to be 70-80 percent.

Thai Airways' cabin factor in the first four months of this year was expected to have been 75 percent, he said.

The mid-tier carrier is part of Thai Airways' expansion plan, an effort to turn itself round after years of losing market share in a region where swelling middle classes, fast economic growth and liberalised air policies provide opportunities for higher earnings.

Thai Air, with a market value of $2.7 billion, is 51 percent owned by the Finance Ministry and competes with bigger rivals like Singapore Airlines and Cathay Pacific Airways .

In 2010, Thai Airways formed an alliance with Singapore's Tiger Airways Holdings Ltd to form a budget carrier Thai Tiger Airways, but Ampon said the launch would be delayed for another two or three months from May. Director Surachai Tansitpong said the new mid-tier airline was not a budget carrier and its operations should not overlap with those of Thai Tiger, which were originally supposed to have started in late March.

The airline has said the delay was due to the process of securing approval for a 98.9 million baht ($3.3 million) investment from the Transport Ministry and the National Economic and Social Development Board.

carrier to operate within one year

n To use wide-body planes for medium, long haul n Move comes as competition increases from budget airlines SINGAPORE: Singapore Airlines , the world's secondmost valuable listed airline, entered the long haul budget carrier market by setting up a new subsidiary, which is expected to compete with AirAsia X. The premium carrier faces competition from other players in Asia and the Middle Eastthat cater to high-end passengers as well as fast-expanding budget airlines in Asia.

The move by Singapore Airlines' new Chief Executive Officer Goh Choon Phongmarks a major reversal from his predecessor's strategy.

"This is driven by the changing landscape in the industry. If you look at what's happening (in Malaysia), AirAsia X has

really made leaps and bounds in terms of their operations," an aviation analyst at Standard & Poor's, Shukor Yusof, said.

"It's a new direction and it's been driven by a need for them to grow within the market," he said.

Goh's predecessor Chew Choon Seng had questioned whether the budget carrier strategy could be successfully applied to long-haul routes, noting that passengers on 13-hour flights would expect to be served meals and enjoy some degree of comfort and entertainment.

"We are seeing a new market segment being created and this will provide another growth opportunity for the SIA Group," SIA's Goh said in a statement.

"As we have observed on

short-haul routes within Asia, low-fare airlines help stimulate demand for travel, and we expect this will also prove true for longer flights," said Goh, who has been in the top job for about six months.

The carrier controls about a third of Singapore-based budget carrier Tiger Airways , which mostly operates on short-haul routes, and owns regional carrier SilkAir. AirAsia X is the long-haul budget carrier unit of Malaysia's AirAsia Singapore Airlines, 55 percent owned by state investor Temasek Holdings , had said near-term weakness in load factors and high fuel prices are the top threats for the carrier and will affect its operating performance.

El Al Air Q1 loss widens on fuel cost JERUSALEM: El Al Israel Airlines (ELAL.TA) said on Wednesday its first-quarter net loss widened due to higher jet fuel expenses and increased competition from foreign carriers.

Israel's flag carrier posted a net loss of $42.9 million, compared with a loss of $16.5 million a year ago.

Revenue edged up 0.5 percent to $425.2 million. Revenue from its cargo business jumped by 32 percent. The company said higher oil prices increased jet fuel expenses to $147 million from $129 million. "Profitability was also hurt by the

erosion in the dollar's exchange rate, the timing of the Passover holiday which occurred in the second quarter and not the first, and a substantial increase in competition," Chief Executive Elyezer Shkedy said.

"We are implementing a plan to lower costs, including reducing the fleet of fuel-inefficient planes and strengthening our technological innovation." Its load factor -- a measure of seats sold -- fell to 76.7 percent from 81.2 percent a year earlier and its market share at Ben-Gurion International Airport slipped to 38.2 percent.

LONDON: An Airbus A380-800 aircraft arrives at Terminal 3 at Heathrow Airport in west London. -Reuters

ISLAMABAD: Temperature in the central and southern parts of the country is rising with every passing day and increasing the people attraction for hilly areas where PTDC is offering different packages to tourists at affordable rates.

Hilly areas like Murree, Ayubia, Nathiagali, Azad Kashmir, Kaghan, Swat, Chitral, Gilgit, Hunza and Skardu are the places where the weather remain pleasant throughout the summer.

At most of these hilly stations and Valleys, Pakistan Tourism Development Corporation has set up its resorts, hotels, motels and restaurants, which are open from 1st May to welcome tourists with affordable rates.

Talking to APP Tayab Mir, Manager Publicity PTDC said that PTDC has launched a

tourist coach service from Rawalpindi to Sawat and the service for Kaghan valley will be resumed from June 1.

PTDC has also set up accommodation facilities at fairy tale places like Rama Lake, Phandar Lake, Gupis, Mastuj, Bunni, Bumburet (Kalash Valley) and Khaplu in GilgitBaltistan and Chitral areas.

From a modest beginning with 10 units in 1976, PTDC Motels have now expanded its boarding, lodging and restaurant facilities to 43 remote tourist destinations spread across the country.

Fourteen motels have been leased out to private parties, whereas remaining units are being operated by PTDC itself.

With over 600 rooms, it has now become the largest chain of motels & restaurants in Pakistan. -APP

Europe in brawl over ash crisis LONDON: New airspace closure rules decided after last year's Icelandic volcanic eruption have caused divisions in Europe on how to decide whether airlines can fly near the ash cloud.

A bureaucratic turf war has so far prevented Europe's controllers from applying the same rules to everyone, with Germany insisting on closing skies as a precaution where there are signs of significant ash, aviation sources said on Tuesday.

A European crisis cell founded after last year's sixday ash crisis was activated for the first time on Monday and met on Tuesday to try to hammer out a harmonised set of rules.

"Germany has been taking a tougher line than most of the other countries," a source familiar with the discussions said.

So far weather maps show a paw-shaped "red" zone of Icelandic ash spreading down to Scotland but sparing Germany, after the Grimsvotn volcano erupted on Saturday.

European authorities were criticised by airlines last year for imposing sweeping airspace closures wherever computerised dispersion models told them ash ought to be present.

The bans effectively turned Europe's air traffic controllers into border guards and grounded more than 10 million passengers.

This time, two changes have come into effect which should reduce disruption, Britain's Civil Aviation Authority says.

Forecasters are providing information dividing airspace into three areas of concentration: low (up to 2 milligrams per cubic metre), medium (up to 4 milligrams) and high above that.

And a new UK-backed system would allow pilots to make most decisions on where to fly, as long as airlines have made a compelling safety case and prove their risk assessment methods.

So far no airline has presented a safety case that would allow it to fly in the red-coded high zone, the CAA said.

SAFE? PROVE IT, SAYS GERMANY Some experts believe the patchy concentrations of ash even in these bands justify the decision to make it a judgment call.

Germany however told pilots on Tuesday that it would refuse to clear aircraft to fly through the medium or high zones except in emergency or under certain other conditions.

If airlines believe it is safe to fly above 2 milligrams, then they must provide hard scientific proof and not just rely on local safety audits, the German transport ministry said.

Berlin had already told engine makers last year that they should do tests to show what concentration is really dangerous, but nothing had emerged, a transport ministry spokesman said.

While the airline industry has welcomed the extra flexibility being offered by many countries, for some that poses its own additional risks in a lawsuit-ridden industry.

"They are putting the onus of proving it is safe on airlines and passing the buck," said a source with a major airline.

In a further bureaucratic twist, officials told Reuters that a UK research plane remained stranded on the ground instead of being released to take samples, frustrating several airlines.

The problems in getting the BAE-146 plane aloft to tackle a new crisis were disclosed by Reuters on Monday.

Ireland's Ryanair (RYA.I) took the matter into its own hands by sending its own plane up into the reported danger zone over Scotland on Tuesday, and said there was no visible ash.

The budget carrier has dismissed the red zone as a "myth".-Reuters

Boeing may re-engine 737 if it cannot redesign: CEO CHICAGO: Boeing Co will "retain the ability" to reengine the current model of its hot-selling 737 narrow body jet should the company be unable to produce a completely redesigned version, Chief Executive Jim McNerney said on Tuesday.

Speaking at a company meeting with investors in Seattle, McNerney said he expects technological breakthroughs to enable a redesigned version that would be a big improvement over the existing design.

The aviation industry is waiting for Boeing to declare its plans for the next version of the 737. A re-engined plane would offer fuel savings of about 10 percent and could be brought to market around 2016. An all-new version could offer double the fuel savings and be brought to market around 2019.

"We are going to retain the ability to re-engine if this new airplane doesn't come together over the next nine months or so as we think it will," McNerney told analysts at the webcast meeting.

Alex Hamilton, managing director of EarlyBirdCapital, said the company appears focused on strategic production rate increases first and the 737's direction next. But he noted that McNerney's language regarding the program on Tuesday hints that the company is getting closer to making a decision.

"It sound's like they sort of gave themselves a deadline," said Hamilton, who attended the event in Seattle.

Boeing has said its customers are calling for an allnew plane. But rival Airbus has said it would put a new engine in its competing A320 aircraft.

The chief executive of Airbus parent EADS , Louis Gallois, said separately on Tuesday he believes Boeing would have to react to Airbus's revamped A320neoplane. Airbus sales chief John Leahy told Reuters Airbus was still on track to get 500 orders for the A320neo in time for the Paris Air Show in June.

McNerney, who expects a redesign, said Boeing is determining what lessons learned on the 787 Dreamliner program could be applied to the 737.

The 787 is a light-weight, carbon-composite airplane that offers unprecedented fuel efficiency for cash-strapped airlines. Boeing has taken 835 orders for the plane from 56 customers.

The 787 is nearly three years behind its original schedule, partly because of snags in the extensive global supply chain. The company aims to deliver its first 787 in the third quarter of this year and reaffirmed that target on Tuesday.

McNerney said Boeing also is deciding how big the next 737 should be compared with the current model.

"As we think about it right now, it may be modestly bigger," he said.

Boeing has been delaying its decision on the direction of the 737 program, at one point promising an announcement by the end of last year. Some experts had hoped for a decision by the Paris Air Show.

"We're not going to be driven by a date to make an announcement," Jim Albaugh, CEO of Boeing Commercial Airplanes, said on the webcast. -Reuters

9

Thursday, May 26, 2011

India oilseeds, soyoil up on global cues; spices down

HUAIBEI : A worker laying out gold necklaces at a gold shop in Huaibei. Reuters

Australia docks stoppage could hit cotton exports SYDNEY: Australian exports of cotton and imports of truck tyres heading to mines could be hit by industrial action which began at two key east coast ports on Wednesday and was set to start at a third port from Thursday.

Maritime Union of Australia workers, fighting for arbitration to be included in their new pay agreement with ports operator Patrick, owned by Asciano , imposed limited work bans and no overtime at Patrick's operations in Sydney and Brisbane on Thursday.

Patrick responded on Wednesday by standing down workers.

"So it's an impasse," Maritime Union of Australia spokesman Darrin Barnett said.

The stoppage at Brisbane will hit eight ships carrying 7,150 containers, while 12 ships and 16,400 containers will be hit if the dockers do not go back to work this week, Patrick said.

Workers are also set to start industrial action at Fremantle, on the west coast, affecting six ships and 4,400 containers.

The three ports affected do not handle Australia's biggest exports, coal and iron ore.

Australia's biggest container port, Melbourne, is also unaffected. Patrick's rival at Australia's container ports, DP World , is operating normally.

Cotton shippers say more than 75,000 bales of cotton worth around A$56 million could be stuck on the docks.

Australia is one of the world's leading cotton exporters, shipping almost all of it output to overseas markets such as China and Thailand. -Reuters

Gold hits 3-week high on euro zone debt jitters LONDON: Gold hit a threeweek high on Wednesday, boosted by fears about the debt crisis in euro zone countries such as Greece while a softer dollar after weak U.S. economic data also helped shore up prices.

Spot gold hit $1,528.40 a troy ounce, its highest since May 4.

It was bid at $1,525.90 an ounce at 1244 GMT from $1,525.75 an ounce late in New York on Tuesday.

Euro-priced gold hit a record 1,087.84 euros an ounce,

vehicle orders tumbled.

A stronger U.S. currency makes commodities priced in dollars more expensive for holders of other currencies.

A yardstick for investor interest are holdings of the largest gold-backed exchange-tradedfund (ETF), New York's SPDR Gold Trust, which rose 0.38 percent to above 39 million ounces on Tuesday from Monday.

"Fresh inflows into gold ETFs following sizeable outflows in recent weeks hint at rising

according to Reuters data. Gold priced in sterling was at 942.60 pounds per ounce, near a lifetime high of 944.87 struck on Tuesday.

The euro zone debt crisis has also in recent days weighed on the euro against the dollar.

"It's balancing debt problems against the impact it's having on the euro versus the dollar," said Daniel Major, analyst at RBS. "Underlying physical demand in Asia is relatively resilient."

The dollar slipped after new orders for long-lasting U.S. manufactured goods fell more than expected in April to record their largest decline in six months as aircraft and motor

investor interest," Credit Suisse Private Banking said in a note.

"Low real yields should prove additionally supportive."

Investors are more inclined to hold gold when interest rates are low as there is little or no opportunity cost for owning the precious metal, which doesn't earn any interest or dividends.

Both platinum and palladium are used to make autocatalysts.

Auto sales are expected to rise this year. Most analysts expect double-digit growth in 2011.

Spot platinum was bid at $1,769.49 an ounce from $1,761.55 on Tuesday, palladium at $741.00 from $732.53. Reuters

MUMBA: India's oilseeds and soyoil futures rose on Wednesday following gains in overseas markets and on depleting arrivals in the local spot markets, analysts said.

The most-traded soybean for June delivery on India's National Commodity and Derivatives Exchange (NCDEX) ended 1.18 percent higher at 2,392 rupees per 100 kg. The most-active June soyoil finished up 1.22 percent at 649.3 rupees per 10 kg, while June rapeseed jumped 1.44 percent to 2,881 rupees per 100 kg.

In the Indore spot market, soyoil edged up by 2.15 rupees to 638.4 rupees per 10 kg, while soybean rose by 2 rupees to 2,348 rupees per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed rose 23 rupees to 2,755 rupees per 100 kg. "Indian market is closely tracking soybean sowing progress in the U.S. Excessive rains have delayed sowing there. Any bad news on sowing front will support oilseed complex," said Vimala Reddy, an analyst at Karvy Comtrade.

"Palm oil exports from Malaysia have risen in May. Traders believe that is mainly because of higher imports by China and India. It will put pressure on local edible oil prices," Reddy said.

India's guar futures closed up due to insufficient stocks with exporters and lower arrivals in the spot market, analysts said. The most active guar for June delivery on NCDEX closed up 1.42 percent at 3,341 rupees per 100 kg. In Jodhpur, a key spot market in Rajasthan, guar seed rose 46 rupees to 3,306 rupees per 100 kg.

India's chana futures closed up on demand from local millers, coupled with declining arrivals in the spot market. The most active chana for June deliveryon NCDEX closed up 1.15 percent at 2,542 rupees per 100 kg. In Delhi, a key spot market, chana rose 14 rupees to 2,439 rupees per 100 kg. -Reuters

Industrial metals find silver lining in China power woes HONG KONG: China's battle with what may be the worst power shortages in seven years could provide a lift for metals prices as Beijing forces energy-intensive smelters and users to curb production, potentially leading to larger imports.

Power cuts for heavy power industrial users in the world's biggest commodity consumer, already hit by higher credit costs as Beijing tightens monetary policy, could force them to draw on stocks, paving the way for restocking later in the year and supporting prices in the longer term, analysts said.

"From July, the whole base metals sector would be affected by power shortages.

Aluminium will be hit the hardest as it uses more electricity than other metals," Li Lijuan, analyst at COFCO Futures in Beijing.

Power deficits in the 26 provinces and regions serviced by the State Grid Corp of China will total at least 30 gigawatts this summer, and could increase to 40 GW if coal and water stocks drop lower than expected.

"Copper imports may rise as early as the second half," said Zhu Bin, chief analyst at Nanhua Futures. Aluminium exports would fall and imports also rise after production cuts and expected local stock drawdowns, he added.

China has substantial stocks to work through, according to estimates from trade sources and analysts. Those estimates peg bonded copper stocks held

in China at more than 400,000 tonnes, along with more than 600,000 tonnes of aluminium ingots, 500,000 tonnes of refined lead and over 1 million tonnes of refined zinc.

Imports could continue to surge in 2012 if stocks are drawn down during power cuts, analysts said. If China ends its monetary tightening cycle, conditions may also be more favourable for imports, analysts said.

"Power shortages in China should be a price positive for metals, as power cuts tend to have a bigger effect on production than demand and thus, at the margin, tighten the underlying market balance," Barclays Capital said in a note.

"We would expect production losses to be more severe in aluminum because of the power-intensive nature of the industry and the large share of the country's power generation it consumes."

ALUMINIUM, COPPER Record monthly aluminium production accounted for roughly 5.2 percent of China's 376.8 billion kWh power consumption in April, making it a regular target of government energy efficiency drives.

But top aluminium producer Chalco , which has operations in Henan and controls above 15 percent of China's smelting capacity, said it does expects production cuts to be limited to 100,000 tonnes for 2011. That would be about 2.5 percent of Chalco's 4 million tonnes annual capacity.

"Our smelters are principal employers in their locating areas," a Chalco official said.

"Based on previous experiences, local governments would protect them. Unless the shortages get very bad."

Smaller firms should feel the squeeze more and earlier than large smelters, prompting them to shut for maintenance on a rotating basis. Still, the smaller smelters could make up for lost output later in the year, so unless power shortages are more severe than expected, China's base metals production in 2011 is expected to rise, analysts said.

State-backed research firm Antaike has adjusted down a 2011 aluminium output estimate by 200,000 tonnes to 19.3 million tonnes, compared to 17.5 million tonnes in 2010, said analyst Li Yang said, citing expected pressure on smaller firms to cut back sharply this summer or shut for maintenance.

Antaike's estimates for production are higher than those published by the National Bureau of Statistics, which pegged China's output of primary aluminium in 2010 at 15.7 million tonnes.

Li also expects some of about 2 million tonnes of new aluminium smelting capacity scheduled to start production in 2011 to be delayed until 2012.

Some copper smelters are already cutting supply to the spot market due to what they see as low prices. This has

already leant support to prices and prompted investors to draw bonded stocks to resell in the spot market, traders said.

On Wednesday, spot Chinese copper prices at about 68,350 yuan a tonne were 200 yuan per tonne lower than the import cost for bonded stocks in Shanghai, based on the cash LME and a premium of $80.

That may change later in the year, power shortages permitting, as overseas miners are paying more to Chinese copper smelters in the second half of the year, encouraging smelters to boost refined copper production.

Steel output is also likely to be hit, though not enough to ease a supply glut in China, the world's top steel producer, the China Iron and Steel Association said last week.

Energy-intensive production of nickel pig iron, used to make stainless steel, is also expected to drop. About twothirds of producers in China are small firms using electric furnaces and make easy targets for local governments looking to trim power supply.

Antaike's analyst Hu Yongda said some lead smelters were also cutting production and selling stocks, prompted by both power cuts and low spot prices. The shutdown of hundreds of lead-acid battery makers in a crackdown aimed at reducing pollution in the eastern coastal Zhejiang and southern Guangdong provinces, has curbed output sharply already.

-Reuters

Oil mixed as US crude falls on demand worries LONDON: Oil was slightly lower on Wednesday, with Brent crude stalled just under $113 a barrel, as concern about weak gasoline demand ahead of the U.S. driving season and a rebounding U.S. dollar weighed on prices.

U.S. crude oil inventories have fallen less than expected, renewing fears high prices are cutting into gasoline consumption in the country, where the start of the driving season will be officially marked by Memorial Day this weekend.

The American Petroleum Institute (API) said on Tuesday crude inventories fell 860,000 barrels for the week ended May 20, lagging expectations of a 1.3 millionbarrel draw.

Gasoline stocks also hinted at weakening demand, rising 2.4 million barrels, after analysts had forecast a 300,000barrel build.

"The API stats yesterday appear to show weakness in gasoline demand and it seems the support from gasoline could disappear reflecting the impact of high demand on prices," said Christophe Barret, oil analyst at Credit Agricole Corporate and Investment Bank.

Falling consumption would prompt a correction in oil prices and forecasts that Brent will drop to $85 a barrel by the second half of the year, he said.

Brent crude for July was

down 3 cents at $112.50 a barrel at 1240 GMT, up from as low as $111.14 a barrel earlier in the session. U.S. crude was down 59 cents at $99 a barrel, up from a low of $98.26.

Worries about demand were accentuated by a larger than expected drop in new orders for long-lasting U.S. manu-

factured goods in April, which recorded their largest decline in six months a government report showed on Wednesday.

The U.S. dollar was up 0.17 percent against a basket of currencies, also weighing on oil prices.

Data from the U.S. Energy Information Administration (EIA) is due at 1430 GMT and has supported markets of late, showing 11 successive weekly motor fuel draws.

Sharp upward revisions of oil price forecasts by Wall Street giants Goldman Sachs and Morgan Stanley have deepened the schism between oil bears and bulls to levels unseen since oil prices peaked in 2008, a Reuters monthly poll showed.

While bears cited weak demand and ebbing geopolitical risk premiums as reasons for oil to plunge to $75 per barrel, bulls saw it soaring to $140 due to supply shortages

and the limited ability of OPEC to cushion any new disruption.

But bullish comments from the oil trading community have not so far this week shielded the market from pressure exerted by a stronger dollar and signs of demand weakness.

"Despite all the TVs and the financial websites running the large 'Goldman sees oil at 130 $/bbl' banner the whole day, WTI did not manage to break the resistance of 100 $/bbl," said Oliver Jakob, an analyst at Petromatrix, in a note.

On Wednesday Glencore International Chief Executive Ivan Glasenberg joined the chorus saying commodities fundamentals remain strong as buoyant demand from emerging markets strains tightening supplies.

South African President Jacob Zuma plans to visit Tripoli next week to discuss an exit strategy for Libyan leader Muammar Gaddafi in cooperation with the Turkish government.

Intensifying NATO airstrikes on Tripoli have helped keep a floor on oil prices.

U.S. regulators launched one of the biggest ever crackdowns on oil price manipulation on Tuesday, suing two well-known traders and two trading firms owned by Norwegian billionaire John Fredriksen for allegedly making $50 million by squeezing markets in 2008. -Reuters

Copper rallies on tight supply focus LONDON: Copper rose more than 2 percent on Wednesday as the spotlight returned to its tight longerterm supply fundamentals after the world's largest miner announced an output reduction.

Three-month copper on the London Metal Exchange was at $9,068 per tonne by 1340 GMT, versus a close of $8,860 a tone on Tuesday.

The metal used in power and construction fell to a five-month trough of $8,504.50 on May 12 and has since struggled to regain momentum.

Copper output from the world's largest mine, Chile's Escondida, fell 4.2 percent in the first quarter versus a year ago to 235,270 tonnes on maintenance and lower ore grades, it said on Tuesday.

"The supply story is certainly part of the strong fundamentals," said Nic Brown, head of research at Natixis.

"The Chilean copper producers have been struggling for quite some time with declining ore grade and although there is some new investment

in copper, production from major projects is not due to come on stream until 20122013."

Natixis forecast a 165,000 tonnes copper supply deficit this year and a 180,000 tonne deficit in 2012. Escondida said its output during the first quarter comprised 157,976 tonnes of copper contained in concentrate, and 77,294 tonnes of copper cathodes.

Goldman Sachs this week recommended investors open long positions in copper as well as zinc. Technical buying and "the Goldman effect" helped base metals to rally despite a robust dollar, an LME floor trader said.

The euro suffered broadly on Wednesday, plumbing a record low versus the Swiss franc as Greece's struggle for political consensus to salvage its finances underlined the possibility that the euro zone debt crisis will knock the single currency lower.

Copper was little changed after data on April U.S. durable orders was released.

New orders for long-lasting U.S. manufactured goods

recorded their largest decline in six months in April as aircraft and motor vehicle bookings tumbled, pointing to some cooling in factory activity.

"I would suspect this weakness in manufacturing depends on shortage of key components from Japan," Brown said. "If that is what is causing it then it is a temporary fact and I wouldn't lose my sleep over it."

Japanese exports tumbled in April from a year earlier as expected, dragged down by a slump in carmakers' output after the March 11 earthquake.

Zinc, down 9.5 percent so far this year, was enjoying some support, said RBC Capital in a note titled: "Zinc, the dog of the LME, is having its day".

Apart from having the largest speculative short commitment of the metals, "it has been used as a hedge for macro copper longs, been a favoured short amongst the technical community and not expected to be in deficit until 2013," RBC said in a note. Reuters

GAZA: Members of a Palestinian family collect wheat in their field during the annual harvest season outside the Khan Yunis refugee camp. Reuters

10 More to corruption in cricket than we know: Strauss LONDON: England Test captain Andrew Strauss has said while there is "more to" corruption in cricket "than we know about", he had not seen "any resolve" in dealing with the problem and that people in charge of tackling the issue are "woefully under-resourced".

England's last Test series at home, against Pakistan, was marred by the spot-fixing controversy and Strauss believed not enough was being done to eliminate corruption in the game.

"Clearly most of the betting seems to go on in the sub-continent but I wouldn't say it was just sub-continental players that are involved," Strauss told the London Evening Standard.

"My gut feeling is there is more to it than we know about.

"It is a very difficult thing to deal with but I don't think that's an excuse not to try to deal with it. I haven't seen any resolve to deal with the issue. It is hard for me to comment because I don't know what's going on behind closed doors.

"The only input I've had is with the anti-corruption people who came round during the World Cup. It seems to me that they are woefully under-resourced. I just don't think they've got the resources to do it properly."

Salman Butt, Mohammad Aamer and Mohammad Asif were banned by the ICC after an independent tribunal found them guilty of orchestrating three pre-planned, deliberate no-balls during the Lord's Test against England last August.

Soon after the allegations against the trio surfaced, Ijaz Butt, the PCB chairman, claimed England's players had taken "enormous amounts of money" to lose the third ODI at The Oval.

Even though England accepted Butt's apology and withdrew the threat of legal action, Strauss said he had been "quite emotional" about the accusation. "My original view was our integrity had been brought into question. We got quite close to not playing the one-dayer at Lord's. But over the course of the evening it became a lot clearer to me that actually the right thing to do was to play.

Thursday, May 26, 2011

Pak put positive spin on West Indies pitches BASSETERRE: Abdur Rehman said the amount of assistance that he and the other Pakistan spinners have gained from the pitches in the two Tests against West Indies have been surprising.

The left-arm spinner's comments came following his three for 26 from 14 overs on the fourth day of the second Test at Warner Park here that have pushed Pakistan to the brink of a series-levelling victory over West Indies.

"We've been surprised by the bounce and the spin that we have gotten from the pitches," he said. "This is why we are very happy. Spinners are happy when they get pitches that turn, but to also get the bounce is good, and [the West Indies] have struggled against the spin and the bounce.

"It would not be a bad idea to dig-up this pitch, and carry it around with me, so that I can get plenty of wickets," joked Rehman.

The bowling of off-spinner Saeed Ajmal, in particular, and part-time offspinner Mohammad Hafeez have overshadowed Rehman on the trip.

Ajmal has been the leading wickettaker in the Tests with 14 wickets prior to the start of the West Indies second innings, including a match haul of 11 in the first Test, and Hafeez has chipped in with vital wickets, particularly in the preceding One-day series.

But Rehman said he has gotten constant support from the Pakistan team

management, and they have allowed him to play his game.

"They have encouraged me to bowl the way I normally do do not try to flight the ball too much, but try to bowl as containing as possible, and the wickets will come - and they did in this innings," said Rehman.

"I was trying to flight the ball too much, and I was not as effective as I could be, but I resorted to my style of bowling, and I got some turn and bounce, and it worked for me."

Rehman echoed the sentiments of Pakistan captain Misbah-ul-Haq that the job of winning the match was only partially finished.

He said he was looking forward to playing his part on the final day, after the visitors fought back from a shaky first day position to inch to the verge of victory.

"It really has been a good comeback for us," he said.

"Our batting struggled on the first day, but this is the way cricket is played.

"Our coaches kept encouraging us, and giving us confidence, and they told us not to worry about what happened on the first day.

"They helped us, and they instructed us what to do, and then we had two hundreds from Taufeeq Umar and our captain in the second innings, and we did well to come back, so it is our job now to finish the game." -APP

Sri Lanka call up Maharoof as standby COLOMBO: Sri Lanka on Tuesday called up all-rounder Farveez Maharoof as a possible replacement for injured paceman Dilhara Fernando ahead of their first Test against England.

"Dilhara's got a nagging knee injury, and the team has taken precautionary measures (by calling up Maharoof)," Sri Lanka Cricket media manager Brian Thomas told AFP. Sri Lanka begin the first of three Tests against England in Cardiff on Thursday.

Fernando, 31, has been tasked with spearheading Sri Lanka's attack in the absence of retired bowlers Lasith Malinga and Muttiah Muralitharan.

On Sunday, Fernando grabbed three wickets in six

balls to help the visitors to a warm-up win over England Lions in Derby.

Maharoof, 26, who has himself been hit by a series of injuries, was a member of Sri Lanka's Test team that played against Australia in Hobart in 2007. The all-rounder is currently in good form, playing county games for English side Lancashire. Maharoof was included in Sri Lanka's first warm-up game in England when the team arrived without several senior players who were away playing in the Indian Premier League tournament.Sri Lanka play a five-match one-day series and a Twenty20 match during the summer tour of England in addition to the Tests. -APP

Pakistan 'A' wicketkeeper Sarfraz Ahmed (R) makes a successful leg before wicket appeals againstAfghanistan national cricket team captain Nowroz Mangal (L) during the One-Day match between Pakistan 'A' and Afghanistan at a local ground inIslamabad

Federer cruises into French Open last 32 PARIS: Roger Federer won 13 games in succession as the 16-time Grand Slam title-winner easily disposed of French wild card Maxime Teixeira 6-3, 6-0, 6-2 to reach the Roland Garros last 32 on Wednesday.

Federer, the 2009 champion in Paris, will take on Serbian 29th seed Janko Tipsarevic, who beat Spain's Pere Riba, for a place in the last 16.

The Swiss great overcame an early break before breezing through in just 84 minutes.

Teixeira, playing in his first Grand Slam event and first tour-level tournament, looked every inch the world 181. Federer never needed to reach top gear and was always in control from the time he broke to lead 5-3 in the first set. Three breaks of serve followed in the second set in which the 22year-old Frenchman won just eight points. Federer had swept 13 games in a row before Teixeira stopped the rot at 1-4 in the third set and the underdog even saved a match point in the seventh game.

But the world number three wrapped up victory on a sweltering Court Suzanne Lenglen when Teixeira went wide with a backhand. -APP

Pakistan's spinner Saeed Ajmal poses with his Man of the Series trophy during the presentation of the second cricket Test match against West Indies in Basseterre

Cricket: IPL struggles to maintain explosive growth NEW DELHI: The Indian Premier League has been as noisy and flamboyant as ever, but some experts believe it has suffered a poor year caused by its ballooning format and cricket overkill following the World Cup. The IPL bandwagon, which started rolling just six days after India won the World Cup in Mumbai on April 2, will eventually come to halt after 74 games with the final in Chennai on Saturday.

The event has revolutionised cricket since it burst onto the scene in 2008 with a heady mixture of international stars, swashbuckling Twenty20 action and Bollywood glamour tapping India's immense market for the sport.

But there were signs this year that its novelty factor may be wearing thin with falling spectator and television audience figures causing concern.

According to the latest study

by UK-based consultancy Brand Finance, the IPL's brand value has dropped by 11 per cent since last year. Currently, the IPL is valued at $3.67 billion, against last year's $4.13 billion.

Television viewing numbers were down 22 percent for the first 26 games across six key markets, according to TAM Media Research, India's leading ratings agency.

Much of the blame has been put on "cricket fatigue" after India won the six-week World Cup at home, triggering wild celebrations across the country.

Others have pointed to superstar players, such as Yuvraj Singh, disappointing loyal fans by switching between sides that have been trying to build up a passionate following from scratch. Official figures have not been released but many stadiums were not sold out for games, despite being scheduled in the evening.

The addition of two new sides to the competition also attracted criticism that the event was becoming bloated and out of control.

Sharapova happy to be marked woman PARIS: Maria Sharapova is delighted to be a marked woman on the world's tennis courts, which is just as well, as donning diamond-encrusted earrings makes her hard to miss.

The Russian eased into the French Open second round with a 6-3, 6-0 win over Croatia's Mirjana Lucic on Tuesday.

With this year's Roland Garros stripped of both Williams sisters, world number one Caroline Wozniacki still to crack a Grand Slam and with Kim Clijsters looking ring-rusty, Sharapova is being talked off as a potential champion. "It's not a big deal.

No matter if I'm ranked 100 or if I'm in the top 10, I think that no matter who I play against, they want to beat me because of what I've achieved in the past," said Sharapova.

"And I've been number one in the world and I've won Grand

Slams. My opponents always raise their level, and that makes me want to raise mine even more. "To me, I certainly don't think about the favourite or the ranking or what position I'm in to win the tournament."

Such was the ease of Sharapova's victory on Tuesday, she found herself fielding questions on her earrings and whether she dreams in Russian or English.

"I wear Tiffany earrings at Grand Slams. Unfortunately I have to give them back after the tournament," said Sharapova.

And those dreams?

"I dream more in Russian than I do in English," she said. "But I think in English sometimes more than Russian."

The next thing for Sharapova to think about is her secondround tie, which will be against French wild card Caroline Garcia. -APP

PARIS: Germany's Julia Goerges walks on the court as she plays against Czech Republic's Lucie Safarova during their Women's second round match in the French Open tennischampionship. -Reuters

Terry Jenner dies after long illness MELBOURNE: Terry Jenner, the former Australian legspinner and noted bowling coach of Shane Warne, has died after a long period of ill health. He was 66.

After playing nine Tests for Australia between 1970 and 1975, Jenner found life difficult following his playing days, and in 1988 was jailed for embezzlement related to gambling debts. He re-emerged in middle age as the mentor of Warne, helping to mould a prolific talent and then popping up for a chat and a coaching session whenever Warne needed a tune-up. This role was as fruitful for Jenner's public rehabilitation as it was for Warne's bowling.

"Working with Shane changed everything," Jenner said in 2010. "I was out there earning the respect of people and the good news is that I felt like I'd redeemed myself for the downs I had."

Jenner maintained a hectic lifestyle between 1992 and 2010, coaching and commentating widely while also becoming synonymous as a gregarious presence in cricket, notably through his hosting of the the Adelaide Test match breakfast.

He suffered a massive heart attack on April 7 last year in England and flew home to Australia with a doctor by his side. Failing health shed kilograms from Jenner's frame and ended his days of coaching and travelling, but he made sure to visit Adelaide Oval during the December Ashes Test.

His health continued to deteriorate into 2011, until he died at 12.15pm local time on May 25 in the beachside suburb of Brighton.

Jenner's funeral will be held at Adelaide Oval, with details to be released soon. -Online

Minister says Pyeongchang not favourite SEOUL: Pyeongchang, the South Korean resort seeking the 2018 Winter Olympics, is not a front-runner in the bidding race but is working hard to secure the event, a senior official said Wednesday.

"I must confess that we're not in the lead as many people have said," Park Sun-Kyoo, vice minister of culture, sports and tourism, told a press conference.

"I ask you to consider that a fact," Yonhap news agency quoted him as saying.

The resort, which is making its third bid for the winter games, is up against the German city of Munich and Annecy in France.

The host will be chosen at the International Olympic Committee (IOC) General Assembly in Durban on July 6.

Park said both South Korean and foreign media see Pyeongchang as the favourite, but cautioned that "Munich is still strong and Annecy is also making its utmost effort" in the bidding. The three applicants made their case to IOC members last week in the Swiss city of Lausanne.

Pyeongchang has stressed that Asia has only hosted the winter games twice before, both times in Japan. It also cites its compact, athlete-friendly layout with all venues within 30 minutes of each other.

Park noted that the 1988 summer Olympics in Seoul helped to transform South Korea's international profile, and a victory for Pyeongchang would assist the nation in growing further.-Reuters

Economy & Continuations

Thursday, May 26, 2011

OECD sees growth firm, but risks abounding Global economic recovery is on track, helped by a stronger United States, but threats ranging from high oil prices to European sovereign debt crises could yet combine to create a bout of stagflation, the OECD said on Wednesday.

The Paris-based Organization for Economic Co-operation and Development said the U.S. and euro area economies were growing faster than expected in forecasts six months ago, although Japan's economy was set to contract after the March earthquake, tsunami and nuclear crisis.

As a result, it said the U.S. Federal Reserve should look to raise interest rates this year, while the European Central Bank could afford to pause its tightening cycle for a while and Japan faced no pressure to act.

In its twice-yearly Economic Outlook, the OECD forecast world growth would ease to 4.2 percent this year from 4.9 percent in 2010 before acceler-

ating to 4.6 percent in 2012.

"This is a delicate moment for the global economy, and the crisis is not over until our economies are creating enough jobs again," OECD Secretary General Angel Gurria said.

"There is also some concern that if downside risks reinforce each other, their cumulative impact could weaken the recovery significantly, possibly triggering stagflation in some advanced economies," he said.

The OECD raised its outlook for the United States from its last report in November, forecasting growth this year of 2.6 percent, compared with an estimate of 2.2 percent in November.

It was also slightly more optimistic about the outlook for growth in the euro zone, forecasting the bloc's economy would expand 2.0 percent in 2011, up from 1.7 percent in November.

But it slashed Japan's forecasts after the country's triple disaster in March. It estimated

the country's economy would contract 0.9 percent this year, having forecast growth of 1.7 percent in November.

RISKS The OECD also cited a slow recovery in Japan as a possible threat to its economic partners, especially if global supply chains remain disrupted as a result.

The effect would be all the more damaging if coupled with a bigger-than-expected slowdown in China, a spiraling sovereign debt crisis in Europe and/or persisting uncertainty over budget policies in the United States and Japan, the OECD warned.

If those risks coincided with a renewed surge in oil prices, then the major economies could see stagflation -- the pernicious combination of stagnant growth and high inflation.

The situation was made all the more fragile by high levels of debt, with the average level of debt across the OECD expected to top 100 percent of output this year. -Reuters

Delay makes Chrysler stake buy costlier: Fiat CEO Italian carmaker Fiat's (FIA.MI) chief executive said on Wednesday postponing the purchase of a stake in Chrysler Group held by the U.S. Treasury would only make any potential deal more expensive.

Fiat exercised an option on Tuesday to acquire a further 16 percent of the Detroit-based carmaker bringing its stake to 46 percent following Chrysler's repayment of $7.6 billion in U.S. and Canadian government loans from its 2009 bailout.

Asked about the possibility Fiat may buy the 6.6 percent stake in Chrysler held by the U.S. Treasury, Sergio Marchionne said: "The more we wait, the costlier it becomes."

Marchionne, chief executive at Fiat as well as Chrysler, declined to give further detail.

Ron Bloom, the Obama administration's point man for auto restructuring, has said the government wants to dispose of the common equity stake it still holds in Chrysler "as soon as practical." -Reuters

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and we are ever vigilant," he said on a possible Lashkar-e-Taiba threat to India in the aftermath of Al Qaeda chief Osama bin Laden's killing.

Asked if there was any "heightened" watch after terror attacks in Pakistan, Antony said India's constant security vigil was not only because of the situation in its neighbourhood but also because it was "always on the radar of terrorists".

"It is not a new thing. We know that there is a constant threat to our security. It is not a one-day affair. So our security forces are working 24x7 and they are ever vigilant. They are closely monitoring the situation," he added. Antony reiterated Prime Minister Manmohan Singh's views that India would not copy the May 2 US special forces operations in Abbottabad near Islamabad in Pakistan to eliminate Osama. Antony said attempts by terrorists to sneak into India, particularly in Jammu and Kashmir, were continuing. "There are many terrorists waiting across the border to infiltrate into our territory, including Kashmir. But there is no increase in infiltration. Attempts are going on. But our armed forces are ever ready to prevent that. In summer, there are always more attempts of infiltration. We are ready to meet this challenge," he added.-Online

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plant-2 was became out of order after two days of its inauguration ceremony. The Pakistani and Chinese Engineers removed the glitch and reactivated the power plant. The engineers attached the power plant with the national gird system, which helped to decrease the loadshedding at national level.

Chashnoob-1 and hydro power plant are generating massive power owing to availability of Chashma water while functioning of new power plants would further increase power generation.

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the negative reaction lifting restrictions [on Dr. Khan] would have in Washington."

Lt General Kidwai was more circumspect, although he said he understood the international concern. His "first response," the cable noted, "was to recommend we discuss the issue with the new civilian government. For its part, he insisted that SPD had not made any statements about Khan and had been concerned to read the recent press comments."

The General said he "did not yet know the new government's thinking on Khan but said he suspected that FM Qureshi's comments that Khan should be released had been made off-the-cuff without due consideration."

Dr. Khan had admitted his guilt, he said, and received a presidential pardon. "Therefore, his legal status was that he was a free man. The GOP had been providing security for 'personal and national security' reasons, but Khan had accepted this agreement voluntarily and had not challenged his restrictions to date.

If he tried to walk out today, however, the GOP had no legal grounds to stop him." -Agencies

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others are vacant for the last four years.

Due to lack of security and market commissioners the commission has failed to realize requirement of launching new product in the boom time from Sep to Dec last year, that is causing losses in terms of money, the sources said.

There is no commissioner who is expert in legal affairs that could go for legislation and corporate redefinition.

"The present set up of SECP provide enough space for unfair businesses and mafias," a business professional on condition of anonymity told Online. -Online

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regard.

It suggested limiting the role of government in goods and factor markets and strengthening the role of private sector enterprises through rewarding ideas-led innovation.

The role of private sector could be strengthened by resolving the energy crisis by accelerating power sector reforms, abolishing the bottlenecks in doing business, supporting the creation of an entrepreneurial eco-system within the country, computerizing the land and revenue record and speeding the enforcement of contracts.

It also suggested for preserving autonomy of the State Bank of Pakistan in order to limit government borrowings, restructuring State Owned Entities and ultimately divesting control to the private sector and removing imperfections from farm to market channel, including storage and transport.

The strategy is for promoting the culture of commercial research and development and respecting intellectual property rights to attract mature investment besides removing statutory requirements in labour markets that cause hiring inflexibilities.

The strategy says that in order to make the overall trading process efficient there is need to further simplify customs procedures, develop an integrated supply chain management service with real-time cargo monitoring and internet-based transactions.

It also highlights the importance of exploring the potential offered by the regional trade. -APP

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phase and we need to take advantage of this moment.

He said that our endeavor is to fight global threat of terrorism and for this we would continue to monitor the resources of Pakistan, Yemen, Somalia and other countries. -Online

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residences nearby.

Senior provincial minister Bashir Bilour said up to 300 kg (660 lb) of explosives were used in the bomb that police said wounded 22 people.

Residents said the explosion rattled windows throughout the city. By mid-day, volunteers and rescue workers were removing rubble with spades while bulldozers removed broken slabs of concrete.

Senior police officer Ejaz Khan said the bomber rammed his car into the station's gate, on the main road leading to Afghanistan through the Khyber Pass. Another police officer said about 20 policemen were in the building when the attack happened.

Continued from page 12 No #4 "Three of our colleagues are still missing under the rubble and it will a separate road (worth Rs. 1.2B) for the investors with the take another hour to clear the site," said officer Bahadur Khan. -Reuters support of JICA to link Karachi directly with the industrial Continued from page 1 No #10 areas to avoid the security concerns to the foreign investors. petitioner, and Khalid Anwar, counsel for TCC, sharing simiIn response to the security issues in Pakistan, Chairman said that a high priority meeting is scheduled with CM Sindh, lar stance said that they would have no objection over Court's Secretary Sindh, security departments and Japanese investors directives. Raza Kazim, however, requested that the instant to counter the security lapses with mutual understandings. petitions should be kept pending till final decision by the apex He further added that in this scenario a better care of the Court. existing Japanese investors can contribute to improve the He said that they were not adverse to any company or party attractiveness of the country once the issues impeding FDI rather they wanted that justice should be achieved. inflows from Japan are removed with economically viable Tariq Asad, the petitioner, requested for permission to amend proposal mutually beneficial for the people of the two counhis plea by challenging the Mining Rules which was turned tries. Apart from the current investment, the ambassador down. showed keen interest for further investments in its dominant Justice Sair Ali told Tariq Asad that he should wait to file petiareas of business including Financial Business, Automobile, tions over issues till dust was settled and the things appeared Electronics, Manufacturing Plant and Trade. -APP clearly.

Continued from page 12 No #5 The Chief Justice also told the Advocate General Balochistan for "turning up the heat" on the regime. that hard times had dawned on the nation but it should brave the Obama said the international community had made "enormous situation while adhering to the rule of law and Constitution. progress" in Libya in saving civilian lives.

The bench was hearing of a number of identical pleas filed by "Gaddafi and his regime to need to understand there will be no Tariq Asad Advocate, Barrister Zafarullah of Pakistan Watan let-up in the pressure we are applying," he said, adding that the Party, 26 senators, Sangrani Tribe and others against award of US was "strongly committed to seeing the job through". mining and exploration contract to the Tethyan Copper More widely, Cameron said the international community need- Company (TCC), a Canadian consortium of Barrick Gold and ed to seize the "once in a generation moment" to support proAntofagasta Minerals, for exploring gold and copper in democracy movements in the Middle East.

He said that he would push for a "major programme" of politi- Rekodiq, in Chaghi District of Balochistan.

On Tuesday, the bench had directed the parties concerned and cal and economic support for reformist governments in the region the Balochistan government to take decision over the issue. The at the G8 later this week.

Obama will later make a key foreign policy speech to MPs and bench had observed that the leasing licence granted to Tethyan Copper Company (TCC) had already expired on February 19 peers on the second day of his state visit.

He is expected to focus on recent developments in the Middle and the provincial government was the competent authority to decide its future. -APP East and the nature of the US-UK relationship. -Online

TOKYO: A man walks past a signboard of AIG in Tokyo. Reuters

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scheme was 31st October, 2011.

Primary objective of the scheme is revival of agriculture activities in flood affected areas, therefore, banks/DFIs would not provide more than 25% loans to non-farm sector, out of limit sanctioned for agricultural financing under the Scheme, the circular said.

Refinance limits already sanctioned in favour of selected banks for agriculture and SMEs under the Scheme, for FY 2010-11 will continue to be available up-to expiry date of the Scheme.

They can also apply for enhancement of limits after utilization of their existing limits. Further, other interested banks/DFIs, having branches in flood affected areas, may also apply to IH&SME Finance Department for sanctioning of fresh limits under the Scheme separately for agriculture and SMEs, the circular added.

It may be recalled here that this Scheme was introduced as part of Government's policy for revival of agriculture activities and SBP relief measures for improving access to financing in flood affected areas. Under the scheme, financing is available at affordable/concessional mark-up rates through banks/DFIs for which a sum of Rs10 billion has been allocated.

However, banks/DFIs have shown a rather dismal performance in utilizing the allocated funds. In view of this, the State Bank has decided to expand the scope of the scheme and made amendments accordingly in Para 1(a) (i), Para 5 (b) & (c) and 7 (b) of the Scheme, which was circulated through SMEFD Circular No.16 of November 02, 2010. -Online

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The benchmark Nikkei average closed down 0.6 per cent at 9,422.88, its lowest close since March 18, while the broader Topix shed 0.2 per cent to 817.74. Immediate support for the Nikkei remains around 9,405, an intraday low hit on April 19.

"Since the Nikkei is almost trading at book value, it's hard to expect it to fall much from here. I'd think 9,300 is the bottom in the near term," said Toshiyuki Kanayama, market analyst at Monex Securities. Shares on the Tokyo stock exchange's main board are trading at book value, while stocks in the S&P 500 Index trade at 2.2 times their book value and Hong Kong shares trade at 1.8 times, according to Thomson Reuters Starmine. But investors had few incentives to buy at this point as worries about the euro zone's debt troubles and talk of a possible slowdown in the US and other economies helped to drive down global shares, with many stock indexes slipping below their recent trendlines. Trading volume on the first section of the Tokyo Stock Exchange fell to the lowest in a month, with 1.60 billion shares changing hands, about 10 per cent less than last week's average of 1.78 billion. Declining shares outnumbered advancing shares by 1,027 to 465.

Hiroichi Nishi, general manager at SMBC Nikko Securities, said the Nikkei looked oversold after having shed nearly 6 percent from its recent high of 10,004, marked on May 2.

Analysts said that if it looks like the Nikkei will stay below 9,500, Bank of Japan buying of exchange traded funds (ETFs) may kick in, which would help to support the market.

The central bank said it bought ETFs worth about 19.4 billion yen ($236 million) on Monday. The BOJ has bought a total of 298.2 billion yen of ETFs since last December.

Some analysts said certain large-cap shares such as exporters may be bought on dips as they look undervalued compared with their global peers.

But many analysts think global share prices will need to regain momentum for that to happen, as Japanese shares are still seen suffering from uncertainty over how quickly the economy can recover from damage by the March 11 earthquake. -Reuters

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Coal India, the world's largest coal miner, ended 1.8 per cent up at 377.35 rupees, also ahead of its quarterly results. It is expected to post strong revenue and profit for the quarter later in the day, helped by a price hike for some customers in late February.

Reliance Industries Ltd, which has the highest weight on the index, extended its losing run to close 1.1 per cent lower at 906 rupees. The stock last week fell to its lowest level in more than six weeks, mainly on concerns over decline in gas output from its blocks off India's east coast.

Elsewhere, by 1058 GMT, the MSCI world equity index was down 0.16 per cent, while the Thomson Reuters global stock index shed 0.2 per cent. -Reuters

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of the Chilean copper miner by Morgan Stanley to "equal-weight from "underweight" on valuation grounds. Commodities trader Glencore fell 0.7 per cent as the recently floated firm made its debut in the FTSE 100 index on Wednesday following the start of unconditional trading in the stock on Tuesday, to replace Invensys. Oil was the worst performing blue chip sector, as the crude price slipped 0.1 per cent, hurt by a firmer dollar. Among individual movers, Vodafone shed 0.2 per cent after Nomura cut its rating on the mobile telecoms firm to "neutral."

Private equity firm 3i Group was helped 1.5 per cent higher as Evolution Securities lifted its rating for the stock to "buy," while Rexam firmed 1.5 per cent after Credit Suisse hiked its target price for the drinks can maker. Ex-dividend factors accounted for the top three FTSE 100 fallers, with Next, International Power and Amec all losing their payout attractions.

US stock index futures pointed to a slightly lower opening on Wall Street on Wednesday, ahead of April US durable goods orders, due at 1:30 p.m. "You've got a battle taking place. On one side you've got the big macro uncertainties that are out there; the European sovereign debt crisis, the threat of inflation potentially... and the high oil price," Henk Potts, market strategist at Barclays Wealth, said. "That's kind of overshadowing the strong corporate reporting season. But long-term fundamentals still look very positive." -Reuters

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country's slow implementation of fiscal reforms.

The central bank also urged the government to increase its tax to GDP ratio, which is around 10 percent, one of the lowest in the world, which would help to manage the fiscal deficit.

Meanwhile, Asian Development Bank will finance major water and power sector projects and fund energy sector efficiency programme in Pakistan.

This was stated by Director General, Central West Asia Department Bank Jaun Miranda during a meeting with Minister for Water and Power Syed Naveed Qamar in Islamabad.

Miranda said the Bank will provide financial and technical support to the Diamer Bhasha Dam project. He said the Bank is also financing private sector hydel power projects land will encourage the private sector in this regard. He offered the Bank to finance tube well energy efficiency project, small and medium dams and capacity building of some of other organizations.

The Minister sought the Bank's cooperation for wind and solar energy projects to generate cheaper electricity. The Minister also discussed the transmission line rehabilitation and improvement programme and various other water sector projects for cooperation of the Bank. -NNI

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that at the moment it is very difficult to comment on the PNS Mehran base attack adding that methodical investigations are underway but as soon as the investigations are completed the true facts would be put before the nation. Regarding a question on the number of terrorists, PM said that we don't know as yet the total number of terrorists. He underlined that that the terrorists by creating uncertainty and chaos, want to harm the national security and destabilize the country.

But, they (terrorists) will not succeed in their nefarious designs, he added.

The enemies of the country, he said, wanted to deprive the people of peace, prosperity and development. The government and all its institutions are determined to defeat the evil designs of such elements, he added.

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Thursday, May 26, 2011

Hakim Zardari laid to rest

ISLAMABAD: President Asif Ali Zardari and Prime Minister Syed Yousuf Raza Gilani offering Fateha over the death of Hakim Zardari. -APP

WikiLeaks Says

Zardari promised IAEA access to AQK NEW DELHI: Months before he became President of Pakistan, Asif Ali Zardari told the United States Ambassador in Pakistan that if he had his way, he would allow the International Atomic Energy Agency (IAEA) to question Abdul Qadeer Khan, the nuclear scientist accused of running a proliferation racket.

Zardari is quoted as saying so in a US diplomatic cable dated April 18, 2008 (150415: secret), accessed by "The Hindu" through WikiLeaks.

In April 2008, a few days after the Pakistan Peoples Party took office, Ambassador Anne W Patterson and Deputy Chief of the Mission Peter Bodde met Zardari, the party's cochairperson, to seek assurances that the new government would not release Dr Khan.

Separately, she sought such an assurance from Lt Gen Khalid Kidwai, the head of the Strategic Plans Division (SPD), which is the Pakistan nuclear establishment's top body.

The scientist, who had admitted in 2004 to running a proliferation racket and had been placed under de facto house arrest after Musharraf's "presidential pardon," is a hero in Pakistan.

The new government was under pressure to release him. Concerns had risen in the international community that the PPP would succumb to the pressures.

"Zardari said flatly that reports about Government of Pakistan interest in releasing Khan were untrue," Patterson wrote. "He had ordered the Foreign Minister to stop making

statements about Khan."

The PPP leader told the US officials: "I told Foreign Minister Shah Mahmood Qureshi, who has no decision-making role on this issue, to stop talking about Khan." He alleged that "false information was being leaked" to embarrass the PPP. "If I had my way," said Zardari, "I would give the IAEA access to Khan."

Recalling that a similar statement, but one that was made publicly, by the PPP leader's late wife Benazir Bhutto in 2007 had provoked much criticism, the cable commented that "Zardari's options for delivering on Benazir's promise are more limited."

It noted further: "The good news is, however, that Zardari understands See # 3 Page 11

Special Economic Zone with broad features ready

Yamaha auto plant to kick-start soon ISLAMABAD: Board of Investment (BOI) is planning to establish a new Japan Specific Special Economic Zone (SEZ) with broad features and in Sindh one million acres of Government land is available for the proposed SEZ. This was stated by Saleem H Mandviwalla, Chairman Board of Investment while talking to Hiroshi Oe ambassador of Japan to Pakistan who called on him here and discussed the issues related to investors.

The Chairman BOI said that the location advantage for industries in the proposed area and vicinity is the direct access of Port Qasim enabling raw material import and finished goods export without incurring major inland transportation costs and saving time and vicinity to the water reservoir is also included in the SEZ plan.

Chairman, BOI informed the ambassador that Yamaha is investing in the automobile sector in Pakistan and

President Asif Ali Zardari has promised lucrative incentives to the Japanese investors during his visit to Japan.

In progress to the project, he told that the land has already been allocated to Yamaha in Karachi (port Qasim).

Chairman BOI also informed the ambassador that Board of Investment proposes to establish a new Japan Specific Special Economic Zone with broad features like: in Sindh 1 million acres of Government land is available for the proposed SEZ. The location advantage for industries in the proposed area and vicinity is the direct access of Port Qasim enabling raw material import and finished goods export without incurring major inland transportation costs and saving time and vicinity to the water reservoir is also included in the SEZ plan.

Chairman BOI proposed the ambassador that Government wants to construct See # 4 Page 11

ADB set to finance major Pak projects

ADB to release $200mn for Pak ISLAMABAD: The Asian Development Bank (ADB) will disburse $200 million to Pakistan before the end of the current fiscal year ending June 30,Pakistan's finance ministry said on Wednesday.

The funds are meant for capital reforms but could help narrow the fiscal deficit, which the State Bank has projected at 6.2 percent for the 2010-11 financial year as against government's target of 5.5 percent.

The bank agreed to release "$200 million for second generation capital reforms" during a meeting with Pakistani officials in Islamabad, the ministry said in a statement.

Pakistan central bank on Saturday that the fiscal deficit needed to be contained.

The IMF has delayed the sixth trance of its $11 billion loan programme, agreed in November 2008, since August last year for Pakistan due to the See # 15 Page 11

Osama raid an 'act of war': Musharraf WASHINGTON: Former Pakistan president Pervez Musharraf has said America's raid that killed Osama bin Laden was "technically an act of war" against his country.

"No country has a right to intrude into any other country," said Musharraf. Bin Laden was on May 2 killed by US Navy Seals in Abbottabad, a garrison town north of Islamabad, in a raid.

Musharraf described as "arrogance" President Barack Obama's comments this week that America would not hesitate to

repeat a raid like that killed bin Laden.

"Actually, technically, legally, you see it; it's an act of war. So I think it is an irresponsible statement, and I think such arrogance should not be shown, publicly, to the world," he told Piers Morgan in an interview to CNN. "Theoretically, technically, yes indeed, it's an act of war," he said, but noted it wouldn't necessarily signal a war.

"How to deal with it is the question, and I leave it to the government there to how they want to deal with it." -Online

NAWABSHAH: Veteran Politician Hakim Ali Zardari, father of President Asif Ali Zardari, laid to rest after Namaz-e-Janaza in Nawabshah here on Wednesday.

Namaz-e-Janaza of Hakim Ali Zardari, a seasoned politician and the father of President Asif Ali Zardari, was offered in the early morning after Fajr prayers, on Wednesday, in Zardari House.

President Asif Ali Zardari, Chief Minister of Sindh, federal and provincial ministers and other notables attended funeral prayers of the veteran politician.

Hakim Ali Zardari was laid to rest at native Balu Ja Quba graveyard beside his wife Begum Bilqees-un-Nisa's grave.

President himself laid him in the grave.

All the intermediate exams have been cancelled in Nawabshah after the sudden demise of Hakim Ali Zardari, said Controller Exams Amir Shafi. -Agencies

Chashma N-plant becomes operational KUNDIYAAN: Chashma Atomic Power Plant-2 has become operational on Wednesday after closure of eight days.

As per details, the Chashma Atomic power See # 2 Page 11

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‘Pak vital for regional stability’

Gates defends US aid for Pak WASHINGTON: Despite trust deficit in bilateral ties, Pakistan is very important state for the US due to its nuclear weapons and the importance of its stability in the region, the Defence Secretary, Robert Gates, has said.

"Pakistan is very important, not just because of Afghanistan but because of its nuclear weapons, because of the importance of stability in the subcontinent.

So we need to keep working at this, "Gates said in response to a question at the American Enterprise Institute (AEI), a Washington-based think tank.

"I do not think that the money that we have spent in Pakistan has been a waste.

The reality is that Pakistan now has 140,000 troops on the border. Their actions in Swat and in South Waziristan have been helpful to us," he argued.

"Our relationship with Pakistan is not what we wish it were. There is, as the Pakistanis are fond of pointing out, a deficit of trust, in their view because the United States has abandoned them on several occasions in the past; most recently, in 1990 and in 1989 after the Soviets left and then with the Pressler Amendment," he noted.

I would say this administration has made a significant effort to try and change the nature of our relationship with Pakistan, in terms of a more enduring partnership. I would say that, obviously, the record is a mixed one.

And we both have concerns, but there's also no doubt in my mind that we have to continue to make our best efforts to manage this relationship going forward," Gates said. -Online

India raises red flag on Pak nuke NEW DELHI: India on Wednesday said the safety of Pakistan's nuclear arsenal was a matter of concern for the global community in the wake of frequent terror attacks on its military establishments.

"Naturally, it is a concern not only for us but for everybody," Defence Minister AK Antony told reporters here after addressing the country's naval commanders at their biannual conference that began Tuesday.

He was responding to questions whether the safety and security of Pakistan's nuclear arsenal were under threat in the wake of the terror strikes such as the one at Mehran naval air base in Karachi Sunday night.

"Developments in Pakistan, especially

in Karachi, are a matter of serious concern to us. We are closely monitoring and we are taking precautions also. But at the same time, we don't want to overreact.

We are also concerned about the developments," Antony said.

Asked if there were any specific intelligence inputs on terror threats to India, the defence minister said he would not share it in public, but assured the nation that the three armed forces were taking the necessary precautions and monitoring the situation 24x7.

"We are aware that there is a constant threat to our security. So that is why we are taking precautions. It (security) is not a one-day affair. It is a constant exercise See # 1 Page 11

No time to abandon Pakistan, Cameron LONDON: British Prime Minister David Cameron supporting Western alliances with Pakistan said this is no time to turn away from alliances with Pakistan.

In a news conference with President Barack Obama, Cameron said that allies must work with Pakistan more closely than ever, not turn away. He said Pakistan has suffered mightily in the fight against extremism.

Cameron said: "Their enemy is our enemy."

President Barack Obama has said the relationship between the US and the UK is "special" and "stronger than it has even been".

Obama said the two men "saw eye to eye" on a range of issues.

Cameron hailed the relationship as "essential for our security and prosperity".

The two men earlier held talks in No 10, which were expected to focus on the conflicts in Libya and Afghanistan.

Cameron said the two men had discussed a range of subjects, including recent developments in the Middle East, the continued fight against terrorism and the need to create jobs in the global economy.

He said he had come to know the President well over the past year and had come to "value his leadership and courage".

President Obama said the US-UK relationship was based on "shared ideals and shared values" not merely "warm sentiment and common history", adding that there was "so much" that binds the two countries together.

Cameron said he and Obama are also committed to helping those fighting for freedom across the Arab world.

Both men reiterated their calls for Libyan leader Col Gaddafi to step down.

On Libya, Cameron said there was no future for the country with Col Gaddafi in power and both the UK and US were looking at "all options" See # 5 Page 11

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