thefinancialdaily-epaper-6-08-2011 by The Financial Daily

International Karachi, Saturday, August 6, 2011, Ramazan-ul-Mubarak 5, Pages 12 Vol No 5 Issue 5 Price Rs 8

MCB Bank chief gets one year extension See on Page 2 Economic Indicators $18.31bn 13.77% $24.83bn $40.41bn $(15.59)bn $542mn $11.20bn $1.92bn Rs 1598bn $59.54bn Rs 5957bn $758mn -2.28% 4.20% $1,051 176.83mn

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

GDP Growth FY12E Per Capita Income FY10 Population

Portfolio Investment SCRA(U.S $ in million)

Yearly(Jul, 2011 up to 04-Aug-2011) Monthly(Aug, 2011 up to 04-Aug-2011) Daily (4-Aug-2011) Total Portfolio Invest (16-Jul-2011)

-51.83 -5.34 2.50 2768

NCCPL (U.S $ in million)

FIPI (05-Aug-2011) Local Companies (05-Aug-2011) Banks / DFI (05-Aug-2011) Mutual Funds (05-Aug-2011) NBFC (05-Aug-2011) Local Investors (05-Aug-2011) Other Organization (05-Aug-2011)

0.48 0.80 -3.84 0.26 0.14 1.42 0.73

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

Close 11,375.09 9,299.88 20,946.14 17,305.87 2,670.79 2,626.42 5,356.72 11,383.68

Change 471.07 359.30 938.60 387.31 20.34 57.62 36.42 512.76

GDR update $.Price PKR/Shares Symbols 111.96 MCB (1 GDR= 2 Shares) 2.60 136.68 OGDC (1 GDR= 10 Shares) 15.87 43.06 UBL (1 GDR= 4 Shares) 2.00 36.60 LUCK (1 GDR= 4 Shares) 1.70 38.17 HUBC (1 GDR= 25 Shares) 11.08

Money Market Update T-Bills (3 Mths) 27-Jul-2011 T-Bills (6 Mths) 27-Jul-2011 T-Bills (12 Mths) 27-Jul-2011 Discount Rate 30-Jul-2011 Kibor (1 Mth) 05-Aug-2011 Kibor (3 Mths) 05-Aug-2011 Kibor (6 Mths) 05-Aug-2011 Kibor (9 Mths) 05-Aug-2011 05-Aug-2011 Kibor (1 Yr) 05-Aug-2011 P.I.B (3 Yrs) 05-Aug-2011 P.I.B (5 Yrs) 05-Aug-2011 P.I.B (10 Yrs) 05-Aug-2011 P.I.B (15 Yrs) 05-Aug-2011 P.I.B (20 Yrs) 05-Aug-2011 P.I.B (30 Yrs)

13.53% 13.78% 13.92% 13.50% 13.44% 13.27% 13.37% 13.67% 13.72% 13.46% 13.52% 13.57% 13.83% 13.95% 14.05%

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

107.94 86.47 104.47 1,656.80 38.80 1,023 45,610 6,645

Open Mkt Currency Rates Symbols

Buy (Rs)

Sell (Rs)

Australian $ 89.50 91.00 Canadian $ 87.40 88.40 Danish Krone 16.25 16.60 Euro 121.50 122.50 Hong Kong $ 10.85 11.00 Japanese Yen 1.090 1.100 Saudi Riyal 22.83 23.03 Singapore $ 70.00 71.00 Swedish Korona 13.30 13.50 Swiss Franc 100.00 101.00 U.A.E Dirham 23.40 23.60 UK Pound 140.00 141.20 US $ 85.95 86.20 Inter-Bank Currency Rates Symbols

Buying

Selling

TT Clean

TT & OD

Australian $ 89.96 90.17 Canadian $ 87.89 88.10 Danish Krone 16.27 16.31 Euro 121.17 121.46 Hong Kong $ 11.02 11.05 Japanese Yen 1.096 1.098 Saudi Riyal 22.93 22.99 Singapore $ 70.42 70.59 Swedish Korona 13.12 13.15 Swiss Franc 112.46 112.72 U.A.E Dirham 23.41 23.47 UK Pound 139.81 140.14 US $ 86.12 86.31

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See on Page 8

Ban on fish export to EU likely to go

See on Page 8

Political turmoil may delay 26 hydro projects

See on Page 8

Global stocks take nasty tumble KSE loses 471 points HONG KONG/LONDON: Asian stocks tumbled as much as 5 per cent on Friday after panic triggered the worst selloff on Wall Street since the global financial crisis, prompting investors to slash positions and scramble for cash and government bonds. Fears that the economy is sliding back towards recession and a recent jump in Italian and Spanish bond yields towards danger levels have driven investors to seek cover. US stock futures were slightly higher after major US markets fell by 4-5 per cent overnight, but employment figures due later in the day could trigger further selling if the jobs picture disappoints. KSE 100-Index ended 3.98 per cent lower on Friday at a more than four-month low, as foreign investors offloaded their holdings amid a global sell-off, while local investors remained cautious, dealers said. The Karachi Stock Exchange's benchmark 100share index closed 3.98 per cent, or 471.07 points, lower at

11,375.09, its lowest close since March 21, on turnover of 113.17 million shares. Major markets in Japan, Australia and South Korea tumbled by at least four per cent in the opening minutes of trade as already-fragile investor confidence was ham-

Detailed stories on Page 7 mered by the eurozone debt crisis and more weak US economic data. Indian shares ended sharply lower on Friday on an acrossthe-board sell-off as fresh worries of a global economic downturn sparked a slide in global equity markets. The 30issue BSE index closed 2.19 per cent lower at 17,305.87 points while 50-stock NSE index closed 2.26 per cent lower at 5,211.25 points. Australia's benchmark S&P/ASX 200 was 174 points lower at 4,102, while in Tokyo the Nikkei index plunged 395.09 points, or 4.09 per cent, to stand at 9,264.09. In Seoul, the benchmark

On problems of public transport

President directs to set up bikes plant ISLAMABAD: President Asif Ali Zardari Friday advised the government to expedite setting up motorcycle manufacturing plant to relieve pressure on public transport and facilitate the low income groups with an economical and affordable means of transport. This he said during a briefing meeting in the Presidency to review progress in the building of a motorcycle plant in Karachi by the Japanese manufacturer Yamaha. The meeting presided over by President Asif Ali Zardari was attended by Senior Minister for Industries Ch Pervaiz Elahi, M Salman Faruqui, Secretary General to the President, Saleem H Mandviwala, Chairman BOI, Secretary Industries Aziz Ahmed Bilour and spokesperson to the President Farhatullah Babar. Briefing the media,

TFD Monitoring ISLAMABAD: The price of LPG has been increased by Rs9 per kilogram. According to the new rate, the price of domestic household cylinder has been changed to Rs1,348 whereas the price of imported household cylinder has been changed to Rs1487, a private news channel reported. Oil and Gas Regulatory

KOSPI index fell 81.30 points, or 4.0 per cent, to 1,937.17 the lowest level since March. The benchmark stock index in Taiwan led Asia, falling 5 per cent. Weak jobs data out of the United States on Thursday fuelled concerns among some analysts that the world could be heading towards another recession following the 2008 financial crisis. The US Labor Department reported that weekly claims for unemployment benefits remained at a high 400,000 last week. In Europe, investor sentiment remained plagued by worries that debt-laden Italy and Spain could be engulfed by the fastmoving eurozone debt crisis. Commodity markets extended heavy overnight losses on fears of slowing demand. Global equities were down 1.5 per cent on the day for a roughly 8.5 per cent loss this week. Emerging market shares stumbled 3.2 percent on the day. The pan-European FTSEurofirst 300 fell around 1.9 per cent. - Agencies

MQM for judicial body to probe Khi unrest

ISLAMABAD: Muttahida Qaumi Movement (MQM) Friday demanded the setting up of a judicial commission to spokesperson to the President Farhatullah Babar said that dur- ascertain the elements responing President's visit to Japan sible for creating law and and his meeting with Japanese order problem in Karachi. Addressing National investors and manufacturer, the Yamaha motorcycle company Assembly session chaired by had shown interest in setting up Deputy Speaker Faisal Karim a motorcycle manufacturing Kundi, Farooq Sattar presentplant in Pakistan. ed to the National Assembly He said that during today's list of 500 terrorists and crim(Friday) meeting, it was inals responsible for worseninformed that teams of ing law and order situation in Japanese manufacturer Yamaha Karachi. had already visited Pakistan to Muttahida leader demanded firm up plans and proposals for judicial commission to probe manufacturing motorcycles in as to why the government did Karachi. not stepped on time into The President called for encouraging foreign invest- action against saboteurs playments in the country and to ing with the lives of the peoextend all possible facilitation ple. He also demanded the to the foreign investors to take government to recompense advantage of investment oppor- the loss incurred in Karachi violence. tunities in the country. The President said that motorThe Commission should bike was an economical means visit Kati Pahari and Orangi See # 5 Page 7 Town and investigate into the unbridled killings there, he added. He said the Karachiites have been given message from law-enforcers to care about their security themselves, adding the government was itself responsible Authority (OGRA) issued for creating unrest in the the notification for the metropolis under its wellincrease in LPG prices. With thought plan. - Agencies an increase in Rs9, the domestic cylinder's price Ramazan Timing Ramazan 5, 1432 AH has been increased by Rs108, whereas the price of Saturday, August 6 commercial cylinder has ---------------------------been increased by Rs432. Iftar today 7:15pm The price of domestic LPG Sehar tomorrow 4:36am has been changed to Rs114 For Fiqah-e-Jafaria per kilo whereas imported Iftar today 7:28pm LPG is changed to Rs126 Sehar tomorrow 4:32am per kilo.

LPG price up by Rs9 per kg

Weather Forecast Cities

Center to back Sindh on army in Karachi: PM

HONG KONG: An investor reacts in front of monitors at a stock trading company in Hong Kong.- Reuters

Wheat output to grow 3.24pc this fiscal ISLAMABAD: The wheat crop production during the current fiscal year of 2011-12 is targeted to increase by 3.24 percent over the production of last fiscal year (2010-11). As much as 25 million tonnes of wheat would be produced during the current fiscal year against the actual production of 24,214 million tonne during last year, an official document revealed. Although the government had set target of 25 million wheat production during 2010-11 but achieved 24.214 million due to devastating floods, showing negative growth of 3.1 per cent against the fixed target. Despite unfavorable circumstances, wheat production during 2010-11 witnessed increase of 3.9 per cent when compared to the production of 23.310 million tonne in 2009-10, the document added. In addition area for production of wheat for year 2010-11

had been set at 9,045 thousand hectares but the crop was cultivated on 8,804 thousand hectares. Wheat is the leading food grain of the country and being staple diet of the people, it occupies a central position in formulation of agriculture policies, the document said adding wheat contributes 14.4 per cent to the value added in agriculture and 3.1 per cent to GDP. On the other hand, the production of rice crop is targeted to grow by 37.11 per cent to 6.613 million tonne during the current fiscal year against the achieved target of 4.823 million tonne in 2010-11. The rice production target for the year 2010-11 was fixed at 6.176 million tonne but due to unfavorable circumstances and devastating floods, production was reduced to 4.823 target, showing down fall of over 28 per cent.

The production of maize is expected to grow by 9.4 per cent from the production of 3.341 million tonne in 2010-11 to 3.656 million tonne in 201112. The production of sugar cane is targeted at 57.580 million tonne against the achieved target of 55.309 million tonne last year, showing an increase of 4.1 per cent. The production of cotton would grow from 11.6 million bales last year to 12.8 million bales this year, an increase of 10.34 per cent, according to the Annual Plan 2011-12. Similarly, the production of gram would increase from 0.523 million tonne last year to 0.676 million tonne this year, showing an increase of 29.2 per cent. However, production of potato and onions is likely go down 10 per cent and one per cent respectively over the production of last year. - APP

Banks to bail out Railways with Rs10bn ISLAMABAD: The Cabinet Committee on Restructuring (CCOR) of Public Sector Enterprises here on Friday decided to provide Rs10 billion through a banking consortium for rehabilitation of locomotives of Pakistan Railways (PR). The meeting of CCOR of Public Sector Enterprises held here under the chairmanship of Federal Minister for Finance Dr Abdul Hafeez Shaikh focused on revitalisation of Pakistan Railways. Keeping in view the importance of PR in the daily lives of general public, the government has decided to address the issue on an immediate basis and ful-

fill all financial needs of Railways. The meeting also decided that Rs4.0 billion will be provided through re-prioritisation of Public Sector Development Programme (PSDP) of fiscal year 2011-12 for improvement of tracks and rolling stock. Besides, the meeting was informed that Rs15 billion have already been allocated for PR in PSDP, release for which shall be fast tracked. The meeting decided to increase the line of credit from Pakistan State Oil (PSO) to PR to Rs2 billion to ensure smooth supply of oil to PR. It is expected that due to addition of locomotives, improve-

ment of tracks and rolling stock and enhanced credit line from PSO, PR will again become a viable entity and provide reliable service to people. CCOR directed the Ministry of Railways that the discontinued services of freight and passenger should be fully restored in the shortest period of time. CCOR also decided to further strengthen the Board of PR which shall be notified within one month. Board shall have representation from all four provinces and will also include professionals and experts of Railways and a strong mix from private sector. See # 3 Page 7

To point out tax evaders

FBR endeavours to access bank accounts TFD Report KARACHI: The Federal Board of Revenue has decided to seek legal help to enable itself inquire any hefty bank account to identify tax evaders. According to details there has been long-standing logjam between banks and apex tax regulator to allow the former to approach any bank account of big volume to see either its holder is registered under national tax number or not.

However, owing to persistent resistance from banking industry to retain confidentiality of its customers, FBR could not succeed to claim the right of scrutiny of any bank account details. Even though under Income Tax Ordinance designated tax authority can obtain detailed information of any bank depositor but under the Banking Companies Ordinance banks have right to refuse to issue information or details of any of their deposit holder.

Moreover, under Protection of Economic Reforms Act 1992 banks can restrict information about their account holders. Meanwhile, officials in FBR have confirmed that the Board has decided to contact law department for the settlement of this dispute between it and banks in view of contradictory provisions in various laws of the state regarding seeking information of bank account holders. See # 4 Page 7

Saturday, August 6, 2011

BISP asked to dole out through BSC

Malik vows to restore complete peace in city

cerned in introducing this technology based solution to the poorest segment of the society saying that this would help the government to implement a complete financially inclusive system to the poor. Dr Abdul Hafeez Shaikh, Federal Minister for Finance, Hina Rabbani Khar, Minister for Foreign Affairs, Syed Naveed Qamar, Federal Minister for Water & Power, M Salman Faruqui, Secretary General to the President, Farzana Raja, Chairperson BISP, Yasin Anwar, acting Governor State Bank, Qamar Zaman Kaira, Begum Shahnaz Wazir Ali, s p o k e s p e r s o n Farhatullah Babar, Chairman NADRA and other senior officials were present during the meeting. Presidents/heads of commercial banks including HBL, NBP, Alfalah, Tameer, Summit, Al-Habib and UBL were also present during the meeting. Farhatullah Babar said that due to various complaints in delivery mechanism of BISP benefits to the beneficiaries,

KARACHI: Federal interior minister Rehman Malik said on Friday that action against miscreants in Karachi will continue till restoration of peace in the city. This he said while talking to media persons after a meeting with the chief of Nizam-e-Mustafa Party Haji Hanif Tayyab at Crisis Management Cell where Sindh home minister Manzoor Wasan was also present. The meeting was held to discuss law and order situation in Karachi. Rehman Malik said that he intends to bring the arrested miscreants before the media. He said crucial information has been gathered with the help of arrested terrorists. He also said that no compromise will be done in restoring peace in the city. He said the information provided by the citizens of Karachi proved very helpful to tackle the miscreants. Manzoor Wasan said that in order to retain peace, more action is needed rather talks. Meanwhile, Rehman Malik along with Manzoor Wasan took an aerial view of the areas in the city where action has been taken against the miscreants. During their visit to Sarjani Town, the locals raised the slogans of "Pakistan Zindabad". They appreciated the efforts of the government for restoring peace in the city. - NP

ISLAMABAD: President Asif Ali Zardari has advised BISP to distribute cash grants among the poor through Benazir Smart Cards (BSC) throughout the country instead of post offices to avoid delays and other complaints in the present delivery mechanism. This he said during a briefing on BISP in the Presidency on Friday which revealed that the BSC introduced in four districts of the country as pilot project had proved to be a huge success. Spokesperson to the President Farhatullah Babar said that the President also asked NADRA to significantly reduce the charges of BSC so that it was easily affordable. The President also urged all the leading commercial banks to partner with BISP in introducing the Smart Card in all parts of the country and making it ATM friendly also. The President appreciated the banks which have shown readiness to partner with BISP in implementation of BSC program. He applauded the efforts of all con-

BISP was directed to adopt more efficient and technologically advanced mechanism of delivering BISP funds through the BSC. The meeting was informed that the various banks have indicated their choices of districts of operations and governor SBP would soon convene a meeting to decide allotments of districts to various banks. The Spokesperson said that the President during the meeting appreciated BISP team for making the program a transparent, apolitical and largest social protection program of the country. He also appreciated objectives targeting mechanism and Poverty Scorecard Survey to identify the deserving. The President noted with satisfaction success of Benazir Smart Card Program in the pilot phase and saying that the success of the program has encouraged the government to implement it across the country. The President said that BSC was planned to be used not only for cash transfers but also for other BISP benefits like health insurance. - NNI

MCB Bank chief gets one year extension

KARACHI: Mustafa Kamal highly appreciated the efforts of KCCI installing education pavilion and applauded the endeavors of Ateeq ur Rehman for his meritorious services for education and health. - Staff Photo

SECP employees given scholarships ISLAMABAD: The Chartered Financial Analyst Institute (CFAI) has awarded 10 scholarships to the Securities and Exchange Commission of Pakistan (SECP) for capacity building of its employees and to enable them to perform their role of regulating capital markets more efficiently. In addition to providing a conducive environment for professional development and growth, the SECP is keen to train its staff and increase the standard of professionalism through continued education like participation in the CFAI programme. The SECP has always encouraged its employees to participate in the

CFA programme through various means including offering fast-track promotion to junior level employees at successful completion of all three levels of CFA exams. The CFAI played a significant role in setting up of the Institute of Capital Markets (ICM) and has been in the forefront to assist the ICM in its various endeavors towards development of certification programs, courses, ethical codes and standards for different market participants. The SECP intends to join hands with CFAI, Pakistan Institute of Corporate Governance, the stock exchanges and other capital market institutions to raise the gover-

nance standards and practices of the corporate sector. The CFAI is the global association for investment professionals. It administers the CFA and CIPM curriculum and exams worldwide, publishes research, conducts professional development programme, and sets voluntary, ethicsbased professional and performance-reporting standards for the investment industry. It has more than 100,000 members, who include the world's 90,000 CFA charter-holders, in 135 countries and territories, as well as 135 affiliated professional societies in 58 countries and territories. - Online

KARACHI: Federal interior minister Rehman Malik and provincial interior minister Manzoor Wasan in a meeting with Nizam-e-Mustafa Party Chief Haji Hanif Tayyab at the Crisis Management Cell on Friday here. -APP

ISLAMABAD: A 5-member delegation of POSCO Ltd, South Korea headed by Baek, SVP, POSCO called on Saleem H Mandviwalla Chairman Board of Investment on Friday in Islamabad. - APP

Death toll rises to 10

Zardari orders probe on building collapse ISLAMABAD/KARACHI : President Asif Ali Zardari has taken notice of building collapse incident in Karachi and has condoled with the victims' families. At least ten people were killed when a five-storey building in Liyari area of Moosa Lane collapsed. There are several people reportedly trapped under the rubble of the crumbled building. President Asif Ali Zardari taking notice of the collapse of a building in Moosa Lane, Lyari in Karachi has directed the provincial government to probe the tragic incident, which caused loss of lives. The President in a message expressed his deep grief and shock over the loss of invaluable human lives in the collapse of building conveyed his condolences to the bereaved families.

The President also directed the concerned authorities to ensure the provision of immediate relief to the affected people and best medical care to the injured. Sindh Governor Dr Ishratul Ebad Khan has also ordered an inquiry into the incident and directed Commissioner Karachi to provide immediate relief to the affected families. The Governor also directed the health department to provide immediate medical treatment to the injured. He also directed the department concerned to assess the losses At least ten bodies have thus far been recovered from five-storey building that collapsed on Thursday. There were several people reportedly trapped under the rubble of the crumbled building.

Pak Army also joined hands in the relief efforts in progress despite narrow pathways towards the mishap site. Commissioner Karachi Muhammed Husain urged people living in buildings adjacent to the collapsed five-storey compound named as Qasr-eRuqayya, to evacuate, as they are feared to collapse as well. Jewelries were also recovered from the debris. Deputy Commissioner assured to take them to their actual owners. Two deceased Areesha and Bilal were siblings, as people are still praying for the well-being of their dear ones residing in the ill-fated building. Rescue work to remove the debris continued overnight to take out at the earliest people left trapped under the debris. Agencies

KARACHI: State Bank of Pakistan has allowed one year extension in the services of Muhammad Usman Ali Usmani as president and CEO of MCB Bank. According to a communique of the bank sent to KSE here Friday, MCB Bank said that Usmani's term has been extended till September 24, 2012, subject to compliance with the applicable laws, rules and regulations. - APP

China offers support for Attabad lake ISLAMABAD: China is ready to assist Pakistan financially and technically for utilization of Attabad lake for overcoming problems arising out of the natural lake formed in Hunza valley at Attabad, particularly its impact on Karakoram Highway. Deputy Ambassador of China in Pakistan Huang Xilian Friday called on Chairman Senate Standing Committee on Interior Senator Talha Mehmood and assured every possible assistance of his government to make Pakistan a prosperous state of the world. He said China and Pakistan have time-tested friendship and assisted each other in every difficult time, adding that China wants to see Pakistan a peaceful and prosperous state of the world. Speaking on the occasion, Senator Talha Mehmood appreciated Chinese envoy assurance of cooperation to Pakistan in diverse fields for economic development and prosperity of the country. He said Pakistan attaches great importance to its relations with China, adding that all the political parties of the country want to see a strengthening relationship between the two states. Senator Talha said that the country's economic situation is not up to the mark and it needs immediate foreign investment for strong economic growth. - APP

HYDERABAD: Woman activists of Awami Tehreek burning tyres during protest for their rights at Qasimabad. INP

Promotion of recycling urged ISLAMABAD: Pakistan is producing huge quantities of scrap in different areas while the government should focus on promoting remanufacturing and recycling industry achieving better economic value from scrap material. This was said by Mahfooz Elahi, President, Islamabad Chamber of Commerce & Industry (ICCI) in a statement. He said that government should also establish a network of scrap yards which could act as a source of input material for remanufacturing & recycling industry. He stressed that government should support small and medium sized enterprises in developing remanufacturing and recycling plants. These plants could be set up in different areas including steel, auto, synthetic, plastic, paper and rubber sectors to develop value added products from scrap, he added. Mahfooz Elahi was of the view that remanufacturing industry was also

consuming less energy as compared to industrial units as only 5 per cent energy was required to re-melt aluminum than to extract it from the ore. He said that millions of computer accessories and electronic items join scrap dumps and pose a challenge for effective disposal. However, promoting of remanufacturing and recycling industry could easily exploit its scrap to develop products of better value. ICCI President said that the remanufacturing and recycling industry could also provide a substantial boost to the manufacturing sector and the whole economy in terms of cuts in imports & unemployment and production of cheap products. It would be an effective way to meet the environmental challenges posed by the generation of scrap and waste. Therefore, government should give due priority to the promotion of this industry, he stressed. NNI

President takes serious note of continuing power shortage ISLAMABAD: Taking serious note of the continuing power shortage in the country, President Asif Ali Zardari on Friday directed the three key ministers dealing with the subject to sort out administrative, financial and technical issues among themselves and submit a report to him early next week on `alternative viable options'. Spokesperson to the President Farhatullah Babar said that the Presidency specially called Finance Minister Dr. Abdul Hafeez Shaikh, Federal Minister for Water & Power Syed Naveed Qamar and Federal Minister for Petroleum & Natural Resources Dr. Asim Hussain to the Presidency for a presentation on problems and issues in the power sector. The chronic energy shortage has become a critical issue, the President said and added that a political government which is accountable to the people, cannot ignore the lingering crisis. The meeting was informed that during the three year period, March 2008 to July 2011, 3400 MW of power had been added to the national grid but there was still a gap of almost 4500 MW between supply and demand during peak summers. The President, during the meeting, also called for stepped up measures to address the problem of power shortage in Karachi. -APP

Two more joins Sindh cabinet KARACHI: Two more members of the provincial assembly were inducted in the Sindh cabinet including Sadiq Memon and Nadeem Bhutto. Sindh Governor Dr Ishratul Ebad Khan took oath from the newly inducted ministers at an impressive ceremony at Governor House here on Friday. The ceremony was also attended by Sindh Chief Minister Syed Qaim Ali Shah, Speaker Nisar Ahmed Khuhro, provincial ministers, advisors and other highups of the provincial government besides Sindh Chief Secretary Raja Mohammed Abbass who conducted the ceremony. - APP

Saturday, August 6, 2011

Brent oil rebounds above $108, US jobs help

Iran pipeline blast also supports prices

LONDON: Brent crude rose to above $108 a barrel on Friday, rebounding from the lowest since June, supported by better-than-expected news on US jobs that eased concern about the health of the world's largest economy and oil consumer. Prices extended an earlier gain after the Labor Department said US payrolls increased by 117,000 in July, above expectations. Crude rose from its session low on reports of an explosion on an oil pipeline in Iran. Brent was up $1.39 at $108.64 a barrel at 1358 GMT, having earlier fallen to $104.30, the lowest since June 27, on concern demand will weaken as US growth falters and Europe's debt crisis worsens. It fell almost $6 in the previous session. "A quick glance at the latest jobs report shows it is positive,

Australian, NZ dlrs on the run after heavy losses SYDNEY/WELLINGTON: The Australian and New Zealand dollars, among this week's worst performers in major currencies, nursed deep bruises on Friday following an investor stampede to the safety of cash and bonds on mounting fears of a global recession. The Aussie dollar was pinned at $1.0436, after getting pummeled on fears the US economy was sliding back and Europe's massive debt woes are here to stay. The local currency hit a six-week low of $1.0425, having tumbled 3 cents in the past 48 hours. It has plummeted 5 per cent this week, and was well away from a post-float high of $1.1081, on a massive wave of risk aversion. The Reserve Bank of Australia (RBA) may have provided some very limited comfort by reiterating an upbeat outlook for the domestic economy on Friday. The market has more than fully priced in a cut of 25 basis points in the 4.75 per cent cash rate next month, and an astonishing 120 basis points of cuts by Christmas. The Aussie suffered most on the safe-haven Swissie, hovering around two-year lows of 0.8024 Swiss francs, having lost a whopping 9 per cent this week. The local dollar also slipped to 82.31 yen, from a brief high atop 85.15. It lost 3.5 per cent this week despite BOJ's intervention to weaken its currency against the US dollar. The New Zealand dollar nursed its bruises at around $0.8366, having touched a three-week low of $0.8274. It sunk 3.5 cents overnight and nearly 6 per cent this week, from its 30-year high of $0.8842. Near-term support is seen at $0.8302, with resistance at $0.8460, the previous upside support level. -Reuters

better than expected. But whether the market will be able to stem its downslide after the recent stream of negative economic data remains to be seen," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut. US crude was down 15 cents at $86.48 in choppy trade. The US benchmark earlier plunged as low as $82.87, the lowest since Nov. 26, after sliding almost 6 per cent on Thursday. Oil also rose as an Iranian pipeline explosion in the early hours on Friday shut flows of up to 40,000 barrels per day (bpd). Iran is the secondlargest OPEC producer after Saudi Arabia. "It's a bit wild to say the least," said Rob Montefusco, a trader at Sucden Financial. "It was carnage first thing this morning, and then we had this explosion in Iran, which has sent it straight back up again."

Other markets rebounded from earlier declines after the US jobs data released at 1230 GMT. Some investors had warned even a strong jobs report would not be enough to allay concerns about the oil demand outlook. "Even if today's employment numbers are better than expected, the markets probably need much more to recover," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd., before the jobs report was released. "People should be very nervous, and they should think that oil demand will be less than expectations." There are increasing signs oil demand is being eroded, in part because of high prices. Barclays Capital, one of the most bullish on oil prices, has trimmed its global demand growth forecast for this year. Reuters

Asian currencies

Sing dlr, ringgit lead Asia FX falls; more slide seen SINGAPORE: Emerging Asian currencies ended the week lower, led by the Singapore dollar and the Malaysian ringgit, as investors on Friday sought to reduce risk by cutting exposures to these currencies and their stocks. Most of the currencies weakened past Fibonacci retracement levels of their gains which began in late June when investors resumed bringing money into the region as worries about euro-zone's debt crisis temporarily eased. The breaks, along with increasing worries about contagion fears in Europe and another recession in the United States, Asia's major export market, are expected to put more pressure on emerging Asian currencies, analysts and dealers said. Gains in emerging Asian currencies already slowed last week on worries about sovereign crisis in the United States and the euro-zone. Asian policymakers may also step in the market to stem falls in their currencies as they are still fighting inflation. Earlier, the Philippine central bank's deputy governor said it participates in the foreign exchange market to dampen volatilities. The ringgit which lost up to 1.4 per cent against the dollar this week, was the worst performer among emerging Asians, its biggest weekly loss since May 2010. Interbank speculators covered dollar-short positions, breaking through the ringgit's 61.8 per cent Fibonacci retracement level of its appreciation between late June and early August. But Goldman remains bullish on the peso and the ringgit, saying it would look for better levels to re-enter the two currencies in the future. The Philippine peso slid on

foreign banks' sales, especially during early session. The peso weakened to as soft as 42.75 per dollar, breaking through the 38.2 per cent Fibonacci line of its appreciation between late June and early August. Given worries about global economic slowdown and the euro-zone's debt crisis, the peso is likely to stay under pressure. Foreign investors' continuous stock sales and dollar demand linked to the unloads pushed down the won to its weakest in more than five weeks against the dollar. The South Korean currency also weakened past the 61.8 per cent Fibonacci retracement line of its appreciation between late June and early August. But the local unit found relief as exporters chased it for settlements on dips and foreign investors scooped up local bonds. Foreign investors bought a net 1.93 trillion won ($1.82 billion) in South Korean treasury bond futures during the day. That compared with foreigners' net stocks sales value of about 2 trillion won during the recent four consecutive sessions. The rupiah suffered from stock outflows and profitbooking by foreign banks after the Indonesian currency's 1.4 per cent appreciation in the past five weeks. The rupiah weakened past 8,651 per dollar, the 61.8 per cent retracement level of its appreciation since late June and it has room to soften further, probably to 8,585, the 76.4 per cent retracement. Foreign investors sold a net $130 million in Indonesian stocks over the previous two consecutive sessions, according to Reuters' data. Still, the dealer says he was looking to buy the rupiah on dips, especially if weakens to between 8,580-8,620. -Reuters

US cotton ends up, bucks trend on sales, charts NEW YORK: Cotton futures ended with moderate gains on Thursday, despite slides across the rest of commodity spectrum, as gains in exports, US chain store sales, and a strong technical picture all added to the rise. The supply outlook was muddied by the contrast between crops withered by drought in Texas and other US cotton growing regions and overabundant supplies produced in other countries in the global market. But near-term chart signals project an upward path for US cotton futures as support levels hold. Forecasts point to a return to $1.1350 as a next target, which represents the break below the neckline of a head and shoulders pattern that took four months to form, said Glen

Arnold, independent broker at a firm of his own name in Georgia. Benchmark December cotton futures on ICE Futures US closed 0.73 per cent higher, at $1.0492 per lb, up 0.76 cent. While the contract fell briefly below the 20-day moving average to a 2-day low at $1.0251, it ended near the high at $1.0568 per lb. Volume for the contract came to 8,070 lots. Among other positive factors, analysts pointed to US comparable chain store sales. Store sales, excluding Walmart, rose 4.6 per cent in July from a year earlier, with apparel and department stores together up 4.9 per cent for the month, the International Council of Shopping Centers

reported. The US Department of Agriculture in its weekly report said net export sales came in at a positive 8,800 running bales for old crop and 3,200 bales for new crop, the first positive reading in several months. Ron Lawson, Managing Director of logicadvisors.com also noted that Chinese buyers were likely in the market around current price levels. Overall volume came in at 11,382 lots, about 23 per cent below the 30-day average for the market on Thursday, according to preliminary Thomson Reuters data. Wednesday's volume came to 10,144 lots, with open interest down at 143,866 lots as of August 3, ICE exchange data showed. -Reuters

Sterling firm vs dlr as US data provides relief LONDON: Sterling rose against the dollar on Friday after US jobs numbers beat forecasts and provided relief to investors who had braced for data that could back views that the United States was heading towards recession and boost safe-haven currencies. The pound was steady against the euro, which was marginally higher at 86.80 pence, having earlier fallen to a two-month low on lingering concerns that the euro-zone's debt problems may engulf two of its larger economies -- Italy and Spain. Traders cited decent resistance at 87.50 pence, the high struck on August 8, while on the downside analysts said a close below its 200-day moving average of 86.644 pence would open up the potential for a fall to 85.90 pence -- the low struck on March 11. "The headline US jobs numbers have provided a bit of encouragement to the likes of euro and Cable with investors cutting some of their long dollar positions," said Michael Derks, chief strategist at FXPRO. "But the labour market in the US remains fragile and given the euro's debt problems, Cable looks like holding on." US data showed non-farm payrolls accelerated more than expected last month and the unemployment rate dipped to 9.1 per cent from 9.2 per cent in June. Sterling was up 0.5 per cent on the day at $1.6352, regaining its footing after falling 1.0 per cent the previous day when the dollar rallied broadly on the back of intervention by Japanese authorities to sell the yen. The pound showed little reaction to data showing a big rise in UK wholesale prices. The figures did nothing to change the view that the Bank of England may hold off from raising interest rates until well into 2012 at the earliest. Some analysts even expect the BOE to ease monetary policy further by resorting to more quantitative easing. Analysts said sterling's gains could run out of steam next week if the Bank cuts its growth forecast in its quarterly inflation report. "Weaker growth ahead while inflation remains uncomfortably high this year could make the ambitious government fiscal austerity plan look difficult to achieve," CitiFX analyst Valentin Marinov said in a note. -Reuters

Indian sugar flat on bargain buying MUMBAI: India's sugar was trading flat after two straight sessions of losses as bargain buying by traders balanced higher supplies of non-levy sugar for August, analysts said. India has made available 1.703 million tonnes of nonlevy sugar quota for August, higher than 1.56 million tonnes it had released for the previous month. Non-levy, or free-sale sugar, is sold by millers in the open market, but the quantity each mill can sell is fixed by the federal government on a monthly basis. At 3:33 pm, the most active August sugar on National Commodity and Derivatives Exchange was trading flat at 2,655 rupees per 100 kg. At Kolhapur, a key spot market in top producing Maharashtra state, the most traded S-variety rose 15 rupees to 2,615 Indian rupees ($58.705) per 100 kg. "There is no demand in the market and prices are likely to remain subdued in the current month. Next month, with the beginning of festive season there could be some upward movement in prices," said a member of Bombay Sugar Merchants Association. Demand for the sweetener usually rises after rains due to festivals such as Ramadan and Ganesh. India should churn out 24.2 million tonnes in the current 2010/11 season and output may jump to 26.5 million tonnes in 2011/12, higher than the country's estimated consumption of around 22 million tonnes, estimates the industry. -Reuters

Dollar drops vs euro, yen as jobs data allays fears l Strong US payroll data assuages recession fears NEW YORK: The dollar fell against the euro and yen on Friday as stronger-than-expected US jobs growth in July assuaged fears that the US economy was sliding into another recession. Nonfarm payrolls accelerated more than expected last month and the unemployment rate dipped to 9.1 per cent from 9.2 per cent in June. Stock markets around the world were jittery after heavy losses in early European trade. Market players have been fretting over the threat of another recession in the United States and policymakers' inability to stem the spread of the eurozone's debt crisis, but Friday's US Labor Department's report offered a glimmer of hope. "While I do not think this sounds the 'all-clear' signal, it does quell some of the conversation that the US is falling back into a recession," said Tom Porcelli, chief US econo-

mist at RBC Capital Markets in New York. "Having said that, there are still plenty of headwinds, like Europe." "This report pulls us back from the ledge a little bit." per cent. The euro recovered from a fresh three-week low of $1.4055 hit earlier in the session as Spanish and Italian government bond yield spreads tightened off their widest levels in volatile trading. It was last at $1.4196, up 0.6 per cent on the day. Improved risk appetite weighed on the safe-haven Swiss franc. The dollar was last at 0.7662 francs, up 0.2 per cent, after hitting a session high of 0.7740, it remained within sight of a record low of 0.7610 hit on Wednesday. The franc rose to a record high against the euro of 1.0710 francs in early Asian trade but retreated to 1.0904 in New

York dealing. Comments from Swiss National Bank Chairman Phillip Hildebrand fanned fears of official action to weaken the currency. He was quoted as saying the SNB would not accept a further appreciation in the franc without acting, having already cut interest rates this week in an attempt to stem the currency's strength. Both the Swiss National Bank and the Bank of Japan intervened this week to stem their currencies rampant rise. The European Central Bank surprised many market players on Thursday by broadening its liquidity operations but some said that had only made investors think that economic conditions in Europe may be deteriorating further. Japanese Finance Minister Yoshihiko Noda said he was closely watching yen moves on Friday, signaling a readiness to continue selling the currency. -Reuters

Indian rupee hits 5-wk Yuan ends low on outflow worries lower on MUMBAI: The Indian rupee ended weaker on Friday after tumbling to its lowest in five weeks as local equities slumped, tracking the global equity selloff on concerns of a slowdown in the global economy, stoking fears of foreign fund outflows. Week-on-week, the local currency has weakened by nearly 1.2 per cent, Thomson Reuters data showed. The partially convertible rupee ended at 44.7350/7400 per dollar, 0.4 per cent weaker from Thursday close of 44.545/555. It earlier touched 44.8550 -- its lowest since June 29. "The (rupee) selling momentum is pretty strong right now and we could see rupee rise above 45 mark as the bank strike may have prevented some dollar demand from appearing," said Ananth Narayan G., head of fixed income, currencies and com-

modities at Standard Chartered Bank. The country's main stock index fell over 2 per cent and posted its second consecutive weekly loss, while world stocks sank for an eighth straight session. Standard Chartered's Ananth Narayan G., however, believes foreign fund outflows will be temporary and the rupee is unlikely to see a sustained weak phase. The one-year onshore forward premium slid to 191.75 points from 204 points close previously, for a second straight session, as exporters booked forward dollars. The one-month onshore forward premium was at 20.25 points from 21 points while the three-month dropped to 59.25 points from 62.75 points. Onemonth offshore non-deliverable forward contracts were quoted at 44.94, weaker than the onshore spot rate. -Reuters

Palm at near 1-mth low on economic woes JAKARTA: Malaysian palm oil futures fell as much as 2.6 per cent on Friday to a nearly onemonth low amid a broad-based sell-off in commodities, as riskaverse investors worried about the health of the US economy ahead of key jobs data. The benchmark October contract on the Bursa Malaysia Derivatives Exchange closed at 3,051 Malaysian ringgit ($1,023) per tonne, but off an earlier low of 3,021 ringgit -the lowest since July 6. US soybeans for November delivery hit a near one-month low, and the most active May 2012 soyoil on China's Dalian Commodity Exchange touched its lowest level since July 4. "What a market today -- all turned red," said a Jakartabased palm trader. "All the negative sentiment spilled over to commodities and also palm

oil. But one thing you should know is that palm's fundamentals are still the same." Cooler temperatures and showers in the US Midwest from Thursday through at least next week are expected to buoy corn and soybean prospects after a heat wave trimmed yield potential. One supporting factor has been data showing that exports of Malaysian palm oil products for July jumped 13.5 per cent to 1,628,688 tonnes. Analysts say buyers are turning to Malaysia rather than Indonesia, as sellers in the latter build up stocks in anticipation of an expected change in the export tax rate this month. Traders say the fasting month of Ramadan will also lead to lower output in Indonesia and Malaysia, the top two global palm producers. -Reuters

weaker mid-point

BEIJING/SHANGHAI: The yuan closed slightly lower versus the dollar on Friday after the People's Bank of China set a weaker mid-point, in line with a rebound in the dollar after the US narrowly escaped a disastrous debt default. Dealers said the central bank would like to guide two-way movements of its currency by fixing a weaker mid-point now and then to ward off risks from one-sided betting on yuan appreciation, although the currency's ascending path was likely to stay unchanged. "The movement of the dollar will lead to some adjustments in the yuan, but they are only brief interludes on the path of yuan appreciation," said a trader in a joint stock bank in Shanghai. Spot yuan closed at 6.4404, weaker than Thursday's close of 6.4390. It has now appreciated 6.0 per cent since it was depegged from the dollar in June 2010 and 2.32 per cent so far this year. Before trade began the PBOC fixed the yuan's mid-point at 6.4451 against the dollar, weaker than Thursday's record high of 6.4386. Traders also said concerns about a possible quickening domestic inflation in July and the recent turbulence in global foreign exchange markets could make the yuan fluctuate in a narrow band in the short term. "I think the yuan would probably move between 6.44 to 6.46 in the coming days," she added. Offshore, benchmark oneyear dollar/yuan non-deliverable forwards (NDFs) were bid at 6.3880 in late trade, weaker than 6.3690 at the previous day's close. Their implied yuan appreciation in a year's time fell to 0.89 per cent from 1.09 per cent. Reuters

Gold holds firm after US data Debt, growth uncertainty fuels risk aversion

LONDON: Gold held firm on Friday after upbeat US labour market data soothed immediate fears of a recession, but longerterm uncertainty about economic growth and concerns about the euro-zone debt crisis supported demand for the precious metal. Autocatalyst metals platinum and palladium both hit their lowest levels since late June at $1,674.95 and $727.43 an ounce respectively, and were on track to post their biggest weekly falls in two months. A deteriorating economic picture and expectations of lower vehicle sales prompted investors to sell their holdings. Spot gold was bid at $1,658.79 a troy ounce by 1322 GMT, from $1,647,90 an ounce late in New York on Thursday when it hit a record high of $1,681.67. The

precious metal edged down slightly from earlier highs after data showed US job growth accelerated more than expected in July. "Gold is waiting to see where equity markets settle. There may be some position covering in equities and potentially some position covering in gold as well," said Ole Hansen, analyst at Saxo Bank. With few other places to go, the metal still looks attractive to investors trying to maintain the value of their capital. Gold has risen more than 17 per cent this year as loose monetary policy in the United States in recent years has weighed on the dollar. Investors also use the metal as a hedge against inflation. US gold futures rose to $1,661

an ounce. Citing enhanced contagion risk from the European debt crisis, Morgan Stanley lifted its 2011 gold price forecast to $1,511 an ounce from $1,401 and raised this year's silver price forecast to $36.21 an ounce from $31.39. Silver tracked gold prices higher, rose to $39.39, from $38.81 on Thursday. Holdings of the largest goldbacked exchange-traded-fund (ETF), New York's SPDR Gold Trust, was unchanged on Thursday from Wednesday, while holdings of COMEX Gold Trust rose 1.9 per cent. Platinum extended losses from the previous session when it fell following news that Impala Platinum had improved its wage offer to avert a strike. -Reuters

Saturday, August 6, 2011

The Financial Daily International Publisher & Editor-in-Chief: Amir A. Ashary Editor: Shakil H. Jafri Executive Editor: Manzar Naqvi

EU under pressure to stem market rout

uropean leaders came under heavy pressure on Friday to take decisive action to stem a spiralling debt crisis while robust US Haseeb Khan, FCA S. Muneer Hussain Rizvi jobs data brought some relief to battered world markets. Asim Abbas Ashary, CPA Khurram Shehzad, CFA Fears of US recession and the Akhtar M. Zaidi, FCA Prof. Zakaria Sajid (KU) spreading euro zone crisis wiped out Dr. A. Hadi Shahid, FCA Zahid Bukhari SVP HBL (retd) $2.5 trillion off world stocks this Muhammad Arif Ismat Sabir week. Head office Better than expected US jobs growth in July helped Wall Street 111-C, Jami Commercial Street 11, Phase VII, DHA Karachi open higher, gaining back at least Telephone: 92-21-35311893-6 Fax: 92-21-35388428

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

Banks miss agri lending target Despite anticipated higher demand for agri credit in the aftermath of August 2010 floods, local banks failed to achieve disbursement target during fiscal year 2010-11. At the best they could achieve 97 per cent of the target. Reportedly, agricultural credit disbursement by commercial and specialised banks rose by 6 per cent to Rs263 billion during the fiscal year ended on June 30, 2011, against a target of Rs270 billion. In absolute terms, disbursement of credit to the agriculture sector increased by about Rs15 billion in 2010-11 as compared to total disbursement of Rs248.120 billion during fiscal year 2009-10. The 'big five' emerged the star performers. Aggregate credit disbursement by these banks that include Allied Bank, Habib Bank, MCB Bank, National Bank of Pakistan and United Bank amounted to Rs140.3 billion in 2010-11 as compared to Rs119.6 billion in 2009-10, depicting an increase of Rs20.70 billion or 17.31 percent. These banks collectively surpassed their target by Rs7.9 billion or 5.9 per cent; against a target Rs132.45 billion. Thirteen domestic private banks collectively disbursed Rs50.187 billion as compared to Rs43.777 billion, depicting an increase of 14.64 per cent. These 13 domestic private banks as a group surpassed their annual target of Rs48.90 billion by Rs1.3 billion or 2.6 per cent. Zarai Taraqiati Bank disbursed a total of Rs65.361 billion, down by 17.28 per cent when compared with Rs79.012 billion disbursed a year ago. The specialized bank could achieve 80 per cent of its target of Rs81.80 billion. The situation needs probe by the central bank and imposition of penalty on those banks which failed in meeting the target. The central bank has been imposing penalty on the banks failing in meeting the target in the past and reverting to the past practice is most desired. Experts recollect that the central bank had introduced lending at discounted rate for the growers of edible oil growers belonging to flood affected areas. However, the scheme failed on two accounts 1) unwillingness of farmers to grow oilseed and 2) bankers not willing to take additional risk. However, some of the sector experts attribute failure in meeting agri lending target to the losses incurred by the banks due to 2010 floods. They say none except the banks could be held responsible for the losses as they had lent huge amounts without getting appropriate insurance cover. Those banks, which had acquired insurance cover, got the least hit. The situation demands a thorough probe because banks had violated clear instructions of the central bank of not to lend any amount without insurance cover. Since most of the lending is being done by the banks operating in the private sector, not only the central bank but boards of these banks should also take action against the employees, who had lent the money recklessly.

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.

Discord among EU policymakers over how to stop a disastrous spread of the crisis to Italy and Spain has caused increasing frustration among investors who have also been spooked by fears that the United States could slip into recession. some of the previous session's sharp losses, but the Dow Jones Industrial Average soon subsided to stand flat on the day. The leaders of Germany, France and Spain scheduled crisis talks later in the day after China and Japan called for global policy cooperation to stop panic on the markets. Discord among EU policymakers over how to stop a disastrous spread of the crisis to Italy and Spain has caused increasing frustration among investors who have also been spooked by fears that the United States could slip into recession. Most notably, the European Central Bank disappointed markets by buying Irish and Portuguese bonds but not government paper in Italy and Spain where bond yields have blown out this week on fears that they may need bailing out. "Would the ECB please get serious," Berenberg private bank said in a note reflecting global concern. "We need a circuit breaker to stop the vicious circle in which fear feeds on

fear." The ECB is holding back help for Italy and Spain, the euro zone's third and fourth biggest economies, to force them to toughen austerity measures, including bringing them forward. Italy's austerity package has been criticised for back loading the most important measures until after an election scheduled for 2013, clearly for political reasons. The call for coordinated action from China and Japan was echoed by European Economic and Monetary Affairs Commissioner Olli Rehn. "International policy coordination through the G7 and G20 is of critical importance," he told a news conference, having broken off his vacation and returned to Brussels. "Some of the reasons for these tensions relate to developments outside the euro area. Investor sentiment has been negatively affected by the impact of the debt ceiling negotiation in the United States and by recent data suggesting a softer patch in the global economy." ECB executive board member Jose Manuel Gonzalez-Paramo joined the chorus calling for urgent and decisive action, although he said there was no need for panic. French President Nicolas Sarkozy was to discuss the situation with German Chancellor Angela Merkel and Spanish Prime Minister Jose Luis Rodriguez Zapatero in separate telephone calls on Friday evening, his office said. ECB RIFT The ECB reactivated its dormant bond-buying programme on Thursday in an attempt to hose down the euro zone's deepening sovereign debt crisis, but only bought Portuguese and Irish debt. Influential members of the ECB opposed even that. Central bank sources told Reuters that four out of 23 ECB governing council members, including powerful German Bundesbank chief Jens Weidmann, voted against the decision to resume any bond purchases. Traders said the central bank intervened for a second day on Friday, but was again only buying Portuguese and Irish paper. Pressure eased on Italian and other peripheral debt but Italy's 10-year-yields overtook those of Spain for the first time since May 2010 and both yields remained above 6 percent, confirming investors concerns about the lack

of action. "Recent developments mainly reflect an increasing skepticism about the systemic capacity of the euro area to respond to the ongoing crisis," Greek Prime Minister George Papandreou wrote in a letter to European Commission President Jose Manuel Barroso, echoing an assessment from Barroso himself earlier this week. Investors said policy differences among European Union governments and central bankers were heightening anxiety about Europe's will to stem the debt crisis. "In Europe, central banks and governments are not marching in step," said Georg Schuh, chief investment officer of Deutsche Bank's asset management arm DB Advisors, adding that the next four to six weeks would be crucial. To bail out Spain would test the fund's existing firepower to the limit while doing so for Italy would overwhelm it but Rehn insisted neither would require assistance. CHINA, JAPAN SEEK ACTION In Japan, Finance Minister Yoshihiko Noda said global policymakers needed to confront currency distortions, the debt crises and concerns about the US economy. "I agree that these subjects should be discussed," he told reporters a day after Japan intervened to sell yen. "Each problem is important, but how

"responsible" monetary policies and protect the dollar investments of other nations. The US Federal Reserve holds its next policy-setting meeting on Tuesday, and economists say there is little more it can do to try to spur growth. Meanwhile, investors are worried that Italy and Spain, the euro area's third and fourth biggest economies, could be next requiring bailouts after Greece, Ireland and Portugal. Analysts said they would look to see if European leaders are willing to expand its emergency financial stability fund to an amount that would put a floor under the market panic. Currently at 440 billion euros, it would need to be doubled or tripled to cover economies as big as Italy and Spain. Rehn said the EU should keep adapting its financial rescue fund and, in the longer term, consider common euro zone bonds. "To be effective, the EFSF needs to be credible and respected by the markets. And therefore we need to be continuously assessing it, once up and running in its objective form, with these goals in mind," he told BBC radio. EU heavyweights Germany and France have so far opposed any common debt issuance, arguing that it would remove a key driver of fiscal discipline in individual member

EU heavyweights Germany and France have so far opposed any common debt issuance, arguing that it would remove a key driver of fiscal discipline in individual member states and push up their own borrowing costs as AAA-rated sovereigns. to prioritise these issues is something to discuss from here on in." Japan sold yen on Thursday to try to cap the currency's rise. It has become a popular safe-haven bet, as has the Swiss franc, as concerns about the United States and Europe grow. Chinese Foreign Minister Yang Jiechi said US debt risks were escalating and countries should step up cooperation on global economic risks. Yang, who is visiting Poland, called on the United States to adopt

states and push up their own borrowing costs as AAA-rated sovereigns. In Washington, a similar sense of inertia to Europe has taken hold. Just days after a bitterly fought, last-minute deal to raise the country's debt ceiling and avoid default, realisation has sunk in that many elements of the $2.1 trillion deficit reduction plan are not locked in place. Doubt has spread through markets that Congress will stick to implementing it in full after the November 2012 elections.-Reuters

Crackdown on bank risk exposure B anks will struggle to recoup the fat returns they grew used to by trading anything from complex bond derivatives to gold and currencies, as a clampdown on their riskiest activities bites. Europe's escalating debt crisis and uncertainty over the US debt ceiling are being blamed for a double-digit dip in bank trading and sales activities in the last quarter, with clients wary of taking trading positions. But the threat of a more permanent structural downturn looms over the Fixed Income, Currencies and Commodities (FICC) business, the "black box" of investment banking, whose

accompanying jobs. "The business will come back, but it will be 20 to 30 per cent smaller than it was. In 18 months time, investment banking headcount will be 20 per cent smaller than it is now," said Anthony Peters, a strategist at Swissinvest. The total stock of debt outstanding - in bond and loans, for companies and governments reached $157 trillion in 2010, according to a study by consultancy firm McKinsey, far larger than the total global stock market, worth $54 trillion. LOWER GEAR Some of the shrinkage is due to wary clients.

Investment banks are normally associated with the high-profile advisory business, but it has been the less glamorous trading floors which have often make the bulk of revenue and it is the traders whom regulators have firmly in their sights. lucrative trades have been the industry's main revenue driver. Investment banks are normally associated with the high-profile advisory business, but it has been the less glamorous trading floors which have often make the bulk of revenue and it is the traders whom regulators have firmly in their sights. FICC desks generate somewhere between 40 and 60 of investment banking revenues at Credit Suisse, Deutsche Bank, UBS, HSBC and Barclays , according to a recent Morgan Stanley estimate. But the once-lucrative business is not raking in the money like it used to. In fact, a cross-section of 7 large investment banks saw revenues from core fixed income sales and trading fall by 33 per cent in the second quarter on average, according to Credit Suisse, a total decline of roughly $8.8 billion. Goldman Sachs was the worst hit with a 64 per cent drop, Morgan Stanley was down 36 per cent, and J.P. Morgan fell 20 per cent, the smallest on the list. The numbers were compared to the first quarter of 2011. Nobody is predicting the death of the fixed income market, given the borrowing needs of companies and countries both in developed and fast-growing emerging economies. But some are forecasting a permanent fall in both size and

Hedge funds have sharply cut back their bets, according to prime brokers -- the bankers who provide them with services from loans to office space. Many, hurt by the whirlwind of the past months, fear second-guessing politicians who are dealing with the crisis. That business could come back. However, the slow death of proprietary trading -- the positioning of a bank's own money to make trading gains that is banned under the new US Dodd-Frank rules -- means sales and trading may not recover fully. Many banks have closed their "prop" trading desks in anticipation of the new rules coming into force. Even European investment banks, which may be less directly hit by the US law, are in retreat. But the full impact may have yet to show. "Visibility on banks' proprietary trading performances is poor. It is difficult for an outsider to determine where the client business stops and proprietary trading begins," Credit Suisse said in a recent research note. One banker, who works in the fixed income market, said he believed prop trading was still widespread, signaled by the undiminished volumes in interest rate swaps trading. "The volumes haven't really changed... If prop trading was significant before, and now it's gone, then wouldn't the volumes have come down?," the banker said. A further clampdown on prop trading could mean permanently lower volumes.

At the same time, financial watchdogs are putting an end to the behind-closed-doors trading of derivatives, a practice that earned itself a bad reputation in the credit crisis, when arcane derivatives blew up without forewarning. The US and European regulators want these instruments to be traded on exchanges, rather than bilaterally over the phone as is now the case. That would shed light on this secretive business they say, and make it less risky. It would also mean far lower margins for banks, who now charge fees for structuring a derivative instrument to the demands of individual clients, for the operational risk that comes with the deal, and for market risk. All three fee components will be under severe pressure under the new plans. Exchanges will offer standard products, so there is no need to structure them. The operational risk will be minimal, and the market risk much less. "In the current world, the sell-side has pretty much all the leverage. It is their contract, it is their terms. (Under the new rules), the risk premium that the trader makes on an interest rate swap should disappear," the person familiar with fixed income markets said. Lower income will inevitably mean job cuts. Much of a recent round of job losses may already reflect the outlook for a more modest business, where salaries were once gold-plated to reflect the booming business. "Cost management will be critical, with both UBS and Credit Suisse initiating a cost save plan (joining Barclays, Deutsche Bank, HSBC, etc.) Cost-cutting will need to be deepest in FICC," Morgan Stanley said in a note.-Reuters

At the same time, financial watchdogs are putting an end to the behindclosed-doors trading of derivatives, a practice that earned itself a bad reputation in the credit crisis, when arcane derivatives blew up without forewarning.

Saturday, August 6, 2011

Market

KSE 100 Index

Symbols

Volume

113,170,572

Value

4,463,172,485

Trades

41,455

Advanced Declined Unchanged Total

Current High Low Change

16 227 60 303

All Share Index

11,375.09 11,846.16 11,300.20 i471.07

Current High Low Change

7,891.52 8,215.17 7,842.85 i323.65

OIL AND GAS

Company

Paid up Cap(mn)

Current High Low Change

KMI 30 Index Current High Low Change

10,769.40 11,228.47 10,680.13 i459.07

19,964.77 20,761.16 19,767.93 i796.39

High Low 1,473.10 1,413.71 Total cos Defaulter cos 12 P/BV (x) ROE (%) 3.18 32.54

Open

High

Low

Close Chg

Volume

351.00 117.01 8.35 100.01 356.00 145.01 206.51 349.00 69.70 226.99 22.00 210.00

332.76 112.44 7.34 95.48 340.01 139.01 197.95 337.06 67.14 217.65 21.20 203.89

332.97 -17.30 112.53 -5.82 7.39 -0.95 95.48 -5.02 340.19 -17.71 139.01 -7.31 202.79 -5.57 337.52 -17.27 67.14 -3.53 218.00 -11.10 21.20 -1.11 205.23 -9.39

192862 800325 1446413 15490 240893 1137524 2475074 2589552 3636 476065 8230 11124

Last 60 days High Low 394.90 143.50 10.10 113.75 390.00 157.51 219.70 391.69 89.25 291.50 25.60 233.00

332.76 112.44 7.34 95.48 323.50 139.01 197.95 324.03 67.14 217.65 21.20 203.89

% Change -4.41 5-Day High 1,551.67 5-Day Low 1,422.45

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

2011 Div BR (%) (%)

20B115.00 - 23.43 - 30.00 20B100.00 -100.00 - 80.00 -

CHEMICALS

Open 770.51 Turnover 27,130 P/E (x) 4.73 Company

High Low 773.39 732.66 Total cos Defaulter cos 4 2 P/BV (x) ROE (%) 1.21 25.53

Close 733.10 Listed cap 3,242.17 mn Payout (%) 11.08

Change -37.41 Market cap 11,203.35 mn Div Yield (%) 2.34

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1092 1321

6.82 6.34

78.05 22.68

78.80 21.90

74.15 21.55

74.17 -3.88 21.61 -1.07

26520 610

91.20 29.50

Pak Int Cont. Terminal PNSC

70.00 21.10

Paid up Cap(mn)

Open

High

Low

Agritech Limited 3924 Bawany Air 75 4.76 BOC (Pak) 250 7.68 Clariant Pak 341 5.89 Dawood Hercules 4813 2.59 Descon Chemical 1996 Descon Oxychem Ltd. 1020 7.06 Dewan Salman 3663 Engro Corporation Ltd 3933 5.78 Engro Polymer 6635 Fatima Fertilizer 22000 Fauji Fertilizer 8482 8.00 Fauji Fert. Bin Qasim 9341 5.95 Ghani Gases Ltd 725 9.33 ICI Pakistan 1388 7.83 Lotte Pakistan 15142 2.99 Nimir Ind Chemical 1106 11.74 Sitara Chem Ind 214 2.31 Sitara Peroxide 551 4.46 Wah-Noble 90 4.86

17.93 8.79 101.00 145.00 47.02 1.86 5.80 2.08 136.10 8.56 15.77 158.64 46.07 11.53 148.27 11.69 2.89 97.99 15.40 36.19

17.93 9.50 102.50 145.00 45.60 1.82 5.75 2.10 133.99 8.35 15.60 157.50 46.10 11.52 145.02 11.52 3.00 96.99 15.25 35.00

17.93 7.79 101.80 140.01 44.67 1.52 4.80 1.60 129.30 7.60 14.77 150.71 44.11 10.53 140.86 10.69 2.60 93.10 14.40 34.39

Close Chg 17.93 9.48 102.00 145.00 44.67 1.58 4.80 1.78 129.30 7.92 14.98 154.00 45.14 11.10 140.87 10.69 2.70 93.34 14.41 34.40

0.00 0.69 1.00 0.00 -2.35 -0.28 -1.00 -0.30 -6.80 -0.64 -0.79 -4.64 -0.93 -0.43 -7.40 -1.00 -0.19 -4.65 -0.99 -1.79

Close 1,738.90 Listed cap 52,251.88 mn Payout (%) 48.81

Change -64.01 Market cap 350,476.44 mn Div Yield (%) 5.98

Last 60 days High Low

Volume 500 50270 639 12329 112634 74750 762625 1295309 1360864 479345 2527808 3618057 7033954 49804 223544 11933658 633756 514 147385 1435

20.94 9.50 109.99 167.00 66.00 2.79 8.40 3.65 198.00 12.67 17.60 172.97 48.05 13.90 160.00 15.47 3.30 104.00 18.60 37.99

16.50 6.11 90.50 140.01 44.67 1.52 4.80 1.60 129.30 7.60 12.10 138.50 41.26 10.53 140.86 10.69 2.26 93.10 14.40 34.39

% Change -3.55 5-Day High 1,858.54 5-Day Low 1,738.90

2010 Div BR (%) (%)

2011 Div BR (%) (%)

5 10R 60 135 25B 50 300B 60 20B - 27.5R 130 25B 92.50 65.5 - 35.00 175 5 25 5B 50 -

FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,104.65 Turnover 115,237 P/E (x) 5.38 Company

Paid up Cap(mn)

Century Paper Security Paper

High Low 1,114.11 1,051.92 Total cos Defaulter cos 4 1 P/BV (x) ROE (%) 0.40 7.47

Close 1,061.78 Listed cap 1,186.83 mn Payout (%) 25.28

Open

High

Low

Close Chg

Volume

707 72.95 411 5.17

16.16 41.06

16.00 41.80

15.16 39.09

15.32 -0.84 39.64 -1.42

79522 35710

Change -42.87 Market cap 2,929.56 mn Div Yield (%) 4.69

Last 60 days High Low 18.00 43.55

14.66 38.89

% Change -3.88 5-Day High 1,126.76 5-Day Low 1,061.78

2010 Div BR (%) (%) 50

2011 Div BR (%) (%)

- 50.00

Open 1,104.02 Turnover 475,362 P/E (x) 3.56 Paid up Cap(mn)

Agriautos Ind Atlas Battery Atlas Honda Dewan Motors Exide (PAK)XDXB General Tyre Ghandhara Nissan Honda Atlas Cars Indus Motors Pak Suzuki

High Low 1,112.02 1,064.76 Total cos Defaulter cos 19 4 P/BV (x) ROE (%) 0.90 25.35

Open

High

Low

144 4.10 101 6.03 719 6.95 1087 71 2.48 598 4.21 450 1428 786 6.94 823 14.70

67.49 235.13 120.77 2.60 187.42 23.27 2.73 9.32 204.49 65.73

68.50 236.00 116.25 2.60 187.99 22.12 2.60 9.25 206.00 68.70

66.00 223.38 116.10 1.83 178.05 22.11 2.50 8.55 198.30 64.00

Company

Paid up Cap(mn)

Close Chg

Close 945.06 Listed cap 3,596.11 mn Payout (%) 30.91

Company

Paid up Cap(mn)

Abdullah Shah Ghazi Sugar AL-Abbas Sugar Clover Pakistan Colony Sugar Mills Faran Sugar Habib Sugar Habib-ADM Ltd J D W Sugar Mehran Sugar Mirpurkhas Sugar National Foods Pangrio Sugar Quice Food Rafhan Maize Sakrand Sugar Sanghar Sugar Shahmurad Sugar Shahtaj Sugar Shakarganj Mills

793 174 94 990 217 750 200 539 173 84 414 109 107 92 223 119 211 120 695

Close Chg

Change -40.61 Market cap 14,023.84 mn Div Yield (%) 10.74

% Change -4.12 5-Day High 1,016.83 5-Day Low 945.06

2010 Div BR (%) (%)

2011 Div BR (%) (%)

Open

High

Low

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

565 3.27 675 555 18.30 4350 -

25.91 2.03 11.25 13.35

25.30 2.00 10.99 13.30

24.62 1.85 10.25 12.35

25.00 1.86 10.25 12.36

-0.91 -0.17 -1.00 -0.99

21224 35700 8323 61695

29.25 3.10 12.95 15.06

24.62 1.62 10.25 0.00

30 -

- 35.00 25B 15.00 -

International Ind Siddiqsons Tin

1199 8.32 785 24.31

48.77 8.62

49.40 8.55

46.34 8.51

46.49 -2.28 8.51 -0.11

17811 10500

52.75 10.00

46.34 8.31

40 7.5

20B -

Close 1,079.52 Listed cap 6,768.53 mn Payout (%) 20.42

Volume

Change -24.50 Market cap 39,851.54 mn Div Yield (%) 5.74

Company

Paid up Cap(mn)

Al-Abbas Cement

Open

High

Low

Close Chg

Change -31.76 Market cap 65,393.32 mn Div Yield (%) 3.57

Last 60 days High Low

Volume

15 -

% Change -3.81 5-Day High 856.79 5-Day Low 801.99

2010 Div BR (%) (%)

3657

2.22

2.15

2.00

2.00 -0.22

16000

3.25

2.00

866

5.39

44.69

45.00

42.46

42.61 -2.08

6453

56.01

42.46

Balochistan Glass Ltd

858

1.50

1.41

1.49 -0.01

4100

2.90

1.36

Berger Paints

182

13.95

13.13

12.95

12.95 -1.00

6770

16.50

12.76

- 122R

10.60

956 38.57

8.10 0.00

105

8.10

1.45

1.42

1.10

1.15 -0.30

220099

2.67

1.10

21.87

21.85

20.78

20.88 -0.99

1783062

25.85

20.78

20R

350

1.60

2.35

1.60

1.60 0.00

4001

2.59

1.60

Fauji Cement

13311

5.91

3.58

3.70

3.35

3.43 -0.15

653411

5.04

3.35

92R

Fecto Cement

502

3.68

4.60

4.69

4.25

4.27 -0.33

1528

7.44

4.00

Flying Cement Ltd

1760

1.18

1.26

0.65

1.08 -0.10

156814

1.95

0.65

Kohat Cement

1288

5.70

5.40

5.20

5.40 -0.30

26694

7.60

5.20

13126 53.00

2.30

2.06

2.12 -0.18

687722

3.35

2.06

- 40.00

Dewan Cement

3891

DG Khan Cement Ltd

4381 27.84

EMCO Ind

Lafarge Pakistan Cmt.

8.10

8.95

8.28

- 100R

2011 Div BR (%) (%)

Attock Cement

Cherat Cement

Lucky Cement

3234

4.72

72.93

72.40

69.29

71.09 -1.84

2470406

77.43

69.29

Maple Leaf Cement

5267

1.92

1.99

1.55

1.74 -0.18

506747

3.05

1.55

Pioneer Cement Shabbir Tiles

2271

4.63

4.49

3.63

3.73 -0.90

168227

6.34

3.63

721

7.00

6.36

6.02

6.02 -0.98

1000

7.49

5.37

- 100R

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 959.31 Turnover 160,863 P/E (x) 2.16

High Low 962.26 921.73 Total cos Defaulter cos 13 2 P/BV (x) ROE (%) 0.95 43.91

Close 931.88 Listed cap 3,043.31 mn Payout (%) 15.55

Change -27.44 Market cap 34,512.27 mn Div Yield (%) 7.19

% Change -2.86 5-Day High 977.68 5-Day Low 931.88

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Last 60 days High Low

Cherat Packagin

172

2.11

45.26

45.51

43.00

43.00 -2.26

35435

54.48

43.00

25B

50R

ECOPACK Ltd

230

1.45

1.49

1.26

1.31 -0.14

49103

1.80

1.10

MACPAC Films

389

1.95

10.23

11.00

9.75

9.76 -0.47

12908

14.35

9.75

Packages Ltd

844 17.09 106.10

106.00 100.80 102.54 -3.56

25848

118.00

100.80

32.5

82 43.61 985.01

995.00 935.76 936.21-48.80

221

1138.00

935.76

900

184.00 175.00 180.13 -3.91

72708

188.90

163.05

100

Company

Siemens Engineering Tri-Pack Films

300

7.03 184.04

Company

Company AL-Khair Gadoon

Paid up Cap(mn)

Open

High

Low

Close Chg

Last 60 days High Low

100

5.19

5.00

4.80

4.80 -0.39

4000

2010 Div BR (%) (%)

2011 Div BR (%) (%)

4.25

2010 Div BR (%) (%) -

2011 Div BR (%) (%)

AL-Ghazi Tractor Bolan Casting

215 104

3.47 205.80 4.90 49.93

204.49 201.00 201.00 -4.80 50.90 48.99 49.62 -0.31

2447 600

244.00 50.90

201.00 46.00

400 25

10B

213 366

7.18 7.00 8.34 577.01

6.50 6.01 6.03 -0.97 578.00 548.16 548.90 -28.11

6200 34580

9.78 625.80

6.01 518.90

650

25B325.00

99.20

47.07

100

48.95

51.39

47.07

48.95

0.00

193

Low

Close Chg -0.58 -4.55 -3.37 0.00 -0.39 -1.23 -0.84 -3.71 -2.05 -2.53 -3.25 -0.07 -1.00 -98.32 -0.06 0.00 -0.42 -2.56 -0.05

Close 2,255.39 Listed cap 11,335.33 mn Payout (%) 30.57

Volume

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

2011 Div BR (%) (%)

20B 15B 65.00 - 60.00 - 50.00 -

Change -91.12 Market cap 322,621.05 mn Div Yield (%) 0.55

Last 60 days High Low

1000 6.90 3.03 500 103.49 84.65 900 73.05 61.00 481 2.99 1.51 5000 19.52 17.50 133317 28.00 23.30 5510 13.74 11.36 49902 90.49 74.00 824 68.48 51.54 5827 54.50 41.00 1524 88.00 61.70 8050 4.52 3.15 12647 6.99 1.81 875 2945.00 2433.00 3000 3.40 2.00 150 13.01 11.50 55000 11.40 7.91 412 71.50 60.00 269665 6.99 4.05

High Low 608.44 564.63 Total cos Defaulter cos 15 7 P/BV (x) ROE (%) 0.08 10.64

Close 582.16 Listed cap 3,763.71 mn Payout (%) 6.27

Open

High

Low

Close Chg

Volume

1.16

8.00 5.76 9.70

9.00 5.85 9.99

9.00 5.10 8.70

9.00 1.00 5.47 -0.29 8.81 -0.89

500 72551 23083

15B 25B -

2010 Div BR (%) (%)

% Change -3.88 5-Day High 2,373.17 5-Day Low 2,255.39 2011 Div BR (%) (%)

50 15 25 25 25B 40 7010B 12.5R 35 20B 22.50 15 20B 12 10 1150 - 600.00 15 10 -

10R 10B -

Change -19.98 Market cap 4,079.91 mn Div Yield (%) 8.73

22.54

Total Assets (Rs in mn)

MA (10-day)

2.10

Total Equity (Rs in mn)

MA (100-day)

2.36

Revenue (Rs in mn)

MA (200-day)

2.49

Interest Expense

1st Support

1.25

Loss after Taxation

2nd Support

0.89

EPS 10 (Rs)

1st Resistance

2.06

Book value / share (Rs)

2nd Resistance

2.51

PE 11 E (x)

Pivot

1.70

PBV (x)

207,629.50 (525.11) 103,936.52 6,823.64 (14,641.22) (0.684) (0.02) (63.63)

KESC closed down -0.53 at 1.56. Volume was 1,768 per cent above average (trending) and Bollinger Bands were 98 per cent wider than normal. The company's loss after taxation stood at Rs5.416 billion which translates into a Loss Per Share of Rs0.25 for the nine months of fiscal year (9MFY11). KESC is currently 37.4 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume out of KESC (bearish). Trend forecasting oscillators are currently bearish on KESC. Momentum oscillator is currently indicating that KESC is currently in an oversold condition.

Soneri Bank Limited

Fundamental Highlights As on Dec 31, 2010

Technical Analysis RSI (14-day)

18.01

Total Assets (Rs in mn)

MA (10-day)

4.82

Total Equity (Rs in mn)

MA (100-day)

5.74

Revenue (Rs in mn)

MA (200-day)

6.43

Interest Expense

1st Support

3.99

Profit after Taxation

2nd Support

3.69

EPS 10 (Rs)

0.208

Book value / share (Rs)

13.92

1st Resistance

4.60

108,105.68 8,381.36 11,478.93 0.00 125.44

2nd Resistance

4.91

PE 11 E (x)

2.12

Pivot

4.30

PBV (x)

0.30

SNBL closed down -0.42 at 4.24. Volume was 213 per cent above average (trending) and Bollinger Bands were 11 per cent wider 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 34.0 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of SNBL at a relatively equal pace. Trend forecasting oscillators are currently bearish on SNBL. Momentum oscillator is currently indicating that SNBL is currently in an oversold condition.

Flying Cement Company Limited

Last 60 days High Low

2010 Div BR (%) (%)

9.50 8.60 13.33

17.5

7.00 5.10 8.70

10B -

% Change -3.32 5-Day High 618.60 5-Day Low 582.16 2011 Div BR (%) (%) - 200R

PERSONAL GOODS Performance of SR Personal Goods Index Open 956.48 Turnover 7,979,934 P/E (x) 5.00 Company

Paid up Cap(mn)

Accord Textile AL-Qadir Textile Amtex Limited Artistic Denim Azgard Nine Bata (Pak) Bilal Fibres Blessed Tex Mills Chenab Limited Colgate Palm D S Ind Ltd Dawood Lawrencepur Dewan Khalid Textile Gadoon Textile XD Gul Ahmed Textile Gulshan Spinning Hira Textile Mills Ltd. Ibrahim Fibres Ideal Spinning Janana D Mal Kohinoor Ind Kohinoor Mills Kohinoor Spinning Kohinoor Textile Mohd Farooq Nishat (Chunian) Nishat Mills Olympia Textile Prosperity Ravi Textile Rupali Poly Saif Textile Sally Textile Samin Textile Sana Ind Sapphire Textile Sargoda Spinning Saritow Spinning Service Ind Service Textile Shadman Cot Suraj Cotton Thal Ltd Treet Corp Yousuf Weaving Zil Limited

93 76 2594 840 4493 76 141 64 1150 316 600 591 57 234 635 222 716 3105 99 48 303 509 1300 2455 189 1621 3516 108 185 250 341 264 88 267 55 201 312 133 120 44 176 180 307 418 400 53

High Low 957.61 936.02 Total cos Defaulter cos 211 73 P/BV (x) ROE (%) 0.43 8.64

Close 944.76 Listed cap 47,070.70 mn Payout (%) 16.68

Open

High

Low

Close Chg

Volume

1.16 8.02 7.64 0.77 0.97 18.68 0.32 0.57 2.97 0.29 0.62 2.41 0.30 0.32 0.45 3.45 2.57 3.65 0.91 2.62 0.21 0.24 2.08 2.69 1.08 1.18 0.22 3.06 0.13 16.67 0.68 6.20 0.49 5.71

0.22 10.50 2.29 25.35 5.57 650.07 1.00 102.33 1.41 725.71 0.95 27.24 1.99 61.19 49.30 7.61 3.50 35.51 4.00 12.10 1.00 1.10 1.20 3.21 0.65 17.68 43.24 0.78 14.87 0.91 36.53 6.55 6.44 5.23 36.98 119.00 3.66 1.25 188.41 0.75 18.94 35.10 98.22 51.63 1.19 55.50

0.18 11.50 2.32 24.09 5.55 660.00 0.98 105.00 1.30 761.90 1.00 28.00 2.19 60.00 47.00 7.25 3.25 34.35 3.80 11.20 1.10 1.25 1.40 3.20 0.65 17.70 42.90 0.74 14.00 0.90 34.80 6.20 6.85 4.26 38.00 113.10 3.30 1.24 186.00 0.50 18.00 33.40 98.25 51.45 1.12 53.01

0.18 11.49 1.70 24.09 4.57 630.00 0.98 99.00 1.10 690.00 0.81 25.88 2.19 58.14 47.00 6.61 3.00 33.74 3.80 11.10 0.90 1.10 1.10 2.80 0.65 16.68 41.08 0.40 14.00 0.56 34.71 6.00 5.44 4.26 35.50 113.10 2.75 1.12 178.99 0.50 18.00 33.35 93.31 49.05 1.11 52.73

0.18 -0.04 11.50 1.00 1.94 -0.35 25.35 0.00 4.58 -0.99 649.30 -0.77 0.98 -0.02 101.00 -1.33 1.10 -0.31 690.33-35.38 0.89 -0.06 27.24 0.00 2.19 0.20 59.07 -2.12 47.00 -2.30 7.00 -0.61 3.10 -0.40 33.74 -1.77 4.00 0.00 11.15 -0.95 0.98 -0.02 1.10 0.00 1.30 0.10 3.00 -0.21 0.65 0.00 16.68 -1.00 41.08 -2.16 0.43 -0.35 14.00 -0.87 0.88 -0.03 34.71 -1.82 6.00 -0.55 6.32 -0.12 4.26 -0.97 35.50 -1.48 119.00 0.00 2.85 -0.81 1.15 -0.10 179.10 -9.31 0.50 -0.25 18.00 -0.94 35.10 0.00 93.31 -4.91 49.62 -2.01 1.11 -0.08 52.73 -2.77

5000 3500 628548 400 3974300 3279 2000 162001 65554 361 18595 200 2000 2010 2500 32935 48000 5850 200 508 10008 5001 20636 6499 5000 648883 2010135 91580 1605 18295 6614 5000 11302 1000 510 116 6793 6000 3797 3000 500 300 93792 53092 2500 10100

% Change -4.54 5-Day High 1,719.65 5-Day Low 1,605.21

Ghandhara Ind Millat Tractors Pak Engineering

66.00 208.00 112.10 1.50 163.10 22.00 2.16 8.55 198.30 61.35

Change -11.72 Market cap 112,371.93 mn Div Yield (%) 3.34

Last 60 days High Low 0.33 11.60 3.76 27.10 7.09 716.00 1.97 105.00 2.44 825.00 1.39 37.50 2.48 73.61 51.94 12.16 4.45 47.00 7.00 15.66 1.64 2.83 2.00 4.70 1.20 26.45 61.99 1.78 15.45 1.30 42.50 9.10 8.94 6.48 41.48 130.08 4.50 1.98 214.95 0.89 23.94 40.50 108.00 59.20 2.16 67.00

0.18 9.50 1.70 21.44 4.57 426.00 0.75 56.07 1.10 684.50 0.80 25.88 1.10 58.14 46.75 6.61 3.00 33.74 3.50 11.10 0.75 0.71 0.65 2.80 0.23 16.68 41.08 0.30 13.00 0.36 34.71 6.00 5.44 3.66 35.50 113.05 2.51 1.12 170.00 0.25 12.90 33.35 93.31 49.05 1.00 52.73

2010 Div BR (%) (%)

% Change -1.23 5-Day High 959.05 5-Day Low 944.76 2011 Div BR (%) (%)

10 - 30B 20 280 50 135 15B140.00 5 15B 70 12.5 10 20B 10 20 5 15 25 45R 30 40 10 - 100R 60 50 5 75 5 50 80 20B 50 900B 35 -

15B -

Performance of SR Pharma and Bio Tech Index

Change -76.42 Market cap 31,581.33 mn Div Yield (%) 18.32

Last 60 days High Low 6.25

73.00 241.50 160.00 3.46 235.00 24.85 4.41 11.58 232.53 72.50

PHARMA AND BIO TECH

Close 1,605.21 Listed cap 1,336.62 mn Payout (%) 131.49

Volume

High

High Low 2,359.75 2,240.36 Total cos Defaulter cos 61 16 P/BV (x) ROE (%) 16.69 30.30

68 1219 693

Performance of SR Industrial Engineering Index High Low 1,684.17 1,600.88 Total cos Defaulter cos 11 1 P/BV (x) ROE (%) 2.73 38.02

5451 14973 1050 356271 14992 5142 21500 31372 4974 19637

Paid up Cap(mn)

Hala Enterprise Pak Elektron Tariq Glass Ind

INDUSTRIAL ENGINEERING Open 1,681.63 Turnover 48,052 P/E (x) 7.18

Open

Open 602.14 Turnover 95,634 P/E (x) 0.72

CONSTRUCTION AND MATERIALS Close 801.99 Listed cap 54,792.74 mn Payout (%) 19.04

-0.89 -7.97 -4.56 -0.69 -6.62 -1.16 -0.18 -0.25 -3.49 -0.48

% Change -2.22 5-Day High 1,114.75 5-Day Low 1,079.52

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

HOUSEHOLD GOODS

Performance of SR Construction and Materials Index High Low 834.17 787.14 Total cos Defaulter cos 37 6 P/BV (x) ROE (%) 0.38 7.10

66.60 227.16 116.21 1.91 180.80 22.11 2.55 9.07 201.00 65.25

3.94 3.61 3.05 3.03 3.03 3.80 91.00 86.45 86.45 86.45 46.07 67.41 64.04 64.04 64.04 2.01 1.95 2.19 1.72 1.95 1.88 19.39 19.00 19.00 19.00 4.99 26.20 26.20 24.91 24.97 4.65 12.36 12.49 11.36 11.52 2.52 80.59 79.10 76.57 76.88 2.35 54.25 52.20 51.54 52.20 1.40 50.86 50.90 48.32 48.33 10.66 65.00 63.99 61.75 61.75 3.22 3.15 3.15 3.15 13.00 6.72 6.99 5.72 5.72 12.68 2800.00 2935.00 2660.00 2701.68 2.41 2.35 2.35 2.35 2.42 11.75 11.55 11.51 11.75 1.27 9.99 9.60 9.25 9.57 2.61 68.06 71.46 65.25 65.50 2.10 5.00 5.00 4.50 4.95

Open 833.75 Turnover 6,713,150 P/E (x) 5.33

Performance of SR Household Goods Index

Last 60 days High Low

Volume

2011 Div BR (%) (%)

- 50SD -

FOOD PRODUCERS Open 2,346.51 Turnover 555,033 P/E (x) -

INDUSTRIAL METALS AND MINING High Low 984.08 939.04 Total cos Defaulter cos 7 1 P/BV (x) ROE (%) 0.95 33.10

40 15

Performance of SR Food Producers Index

Performance of SR Industrial Metals and Mining Index Open 985.67 Turnover 93,558 P/E (x) 2.88

2010 Div BR (%) (%)

Performance of SR Automobile and Parts Index

Company

High Low 1,787.22 1,711.41 Total cos Defaulter cos 36 6 P/BV (x) ROE (%) 2.86 35.00

% Change -4.86 5-Day High 789.20 5-Day Low 733.10

AUTOMOBILE AND PARTS

Performance of SR Chemicals Index

Company

Karachi Electric Supply Co Ltd

Performance of SR Industrial Transportation Index

Close Change 1,422.45 -65.56 Listed cap Market cap 65,194.15 mn 1,044,049.74 mn Payout (%) Div Yield (%) 55.94 5.73

Attock Petroleum 691 6.02 350.27 Attock Refinery 853 3.69 118.35 BYCO Petroleum 3921 8.34 Mari Gas Company 735 3.91 100.50 National Refinery 800 4.70 357.90 Oil & Gas Development 43009 9.41 146.32 Pak Petroleum 11950 7.41 208.36 Pak Oilfields 2365 7.44 354.79 Pak Refinery Limited 350 37.51 70.67 P.S.O 1715 3.11 229.10 Burshane LPG 226 - 22.31 Shell Pakistan 685 7.30 214.62

Open 1,802.91 Turnover 27,716,729 P/E (x) 8.16

Alert ! Unusual Movements

INDUSTRIAL TRANSPORTATION

Performance of SR Oil and Gas Index Open 1,488.01 Turnover 7,942,545 P/E (x) 9.76

KSE 30 Index

Open 976.61 Turnover 22,027 P/E (x) 6.23 Company Abbott (Lab) Ferozsons (Lab) GlaxoSmithKline Highnoon (Lab) IBL HealthCare Ltd Searle Pak

Paid up Cap(mn) 979 250 2019 182 200 306

PE 5.52 7.52 10.07 6.14 3.48 5.66

Open 94.87 95.00 72.44 27.89 9.00 60.00

High 93.45 91.00 72.00 26.72 8.50 58.00

High Low 960.86 935.31 Total cos Defaulter cos 9 P/BV (x) ROE (%) 1.39 22.31 Low 90.13 90.25 68.82 26.50 8.50 58.00

Close Chg 90.15 90.79 70.50 26.53 8.50 58.00

-4.72 -4.21 -1.94 -1.36 -0.50 -2.00

Close 944.20 Listed cap 3,904.20 mn Payout (%) 44.54

Volume 6240 1148 3843 4700 5000 1074

Change -32.41 Market cap 30,921.59 mn Div Yield (%) 7.15

Last 60 days High Low 97.80 98.73 79.99 33.45 10.70 62.80

88.75 88.21 68.82 25.55 8.50 54.00

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

% Change -3.32 5-Day High 983.64 5-Day Low 944.20 2011 Div BR (%) (%)

20B 12.50 15B 10B -

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

29.36

Total Assets (Rs in mn)

5,548.30

MA (10-day)

1.23

Total Equity (Rs in mn)

1,598.52

MA (100-day)

1.41

Revenue (Rs in mn)

MA (200-day)

1.59

Interest Expense

1st Support

0.74

Loss after Taxation

2nd Support

0.39

EPS 10 (Rs)

1st Resistance

1.35

Book value / share (Rs)

2nd Resistance

1.61

PE 11 E (x)

Pivot

1.00

PBV (x)

80.62 28.12 (172.17) (0.978) 9.08 0.12

FLYNG closed down -0.10 at 1.08. Volume was 171 per cent above average (trending) and Bollinger Bands were 31 per cent narrower than normal. The company's loss after taxation stood at Rs99.232 million which translates into a Loss Per Share of Rs0.56 for the nine months of fiscal year (9MFY11). FLYNG is currently 31.9 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume out of FLYNG (bearish). Trend forecasting oscillators are currently bearish on FLYNG. Momentum oscillator is currently indicating that FLYNG is currently in an oversold condition.

Pioneer Cement Limited

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

19.80

Total Assets (Rs in mn)

10,325.49

MA (10-day)

4.75

Total Equity (Rs in mn)

2,218.22

MA (100-day)

5.43

Revenue (Rs in mn)

3,872.83

MA (200-day)

6.14

Interest Expense

1st Support

3.41

Loss after Taxation

2nd Support

3.09

EPS 10 (Rs)

1st Resistance

4.27

Book value / share (Rs)

2nd Resistance

4.81

PE 11 E (x)

Pivot

3.95

PBV (x)

392.66 (590.93) (2.653) 9.96 0.37

PIOC closed down -0.90 at 3.73. Volume was 350 per cent above average (trending) and Bollinger Bands were 61 per cent wider than normal. The company's loss after taxation stood at Rs196.945 million which translates into a Loss Per Share of Rs0.85 for the nine months of fiscal year (9MFY11). PIOC is currently 39.4 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume out of PIOC (bearish). Trend forecasting oscillators are currently bearish on PIOC. Momentum oscillator is currently indicating that PIOC is currently in an oversold condition.

BOOK CLOSURES Company

From

General Tyre & Rubber #

07-Aug

18-Aug

Nishat Power #

08-Aug

22-Aug

(TFC) Allied Bank

13-Aug

26-Aug

Nishat Chunian Power #

16-Aug

22-Aug

First Habib Modaraba

25-Aug

31-Aug

Fauji Fertiliser

29-Aug

04-Sep

MCB Bank

02-Sep

09-Sep

30(III)

28-Oct

03-Nov

Husein Industries

D/B/R

Spot AGM/Date 18-Aug

INDICATIONS # Extraordinary General Meeting

OTHER SECTORS Symbols TRG Pakistan Ltd.

Open

High

Low Close

Change

Vol

2.17

2.15

1.5

1.75

-0.42

5512443

Murree Brewery Co.

108.64

108.2

103.21

-5.43

16765

Shezan International

124.45

119

118.31

124.45

P.I.A.C.(A) AKD Capital Limited Pace (Pak) Ltd. Netsol Technologies

105

1.95

2.08

1.62

1.7

-0.25

31.69

30.15

30.11

30.15

-1.54

1101

1.77

1.87

1.45

1.61

-0.16

1700616

287531

18.41

18.65

17.41

-1

470492

Saturday, August 6, 2011

FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 744.60 Turnover 6,229,921 P/E (x) 3.38 Paid up Cap(mn)

Company Pak Datacom Pak. Telecomm Co A Telecard WorldCall Tele Wateen Telecom Ltd

78 28.43 37740 8.66 3000 2.03 8606 6175 -

Open

High Low 739.81 672.25 Total cos Defaulter cos 5 P/BV (x) ROE (%) 0.43 12.84

High

28.48 11.57 1.30 1.61 1.63

Low

29.80 11.40 1.43 1.68 1.79

27.75 10.57 1.16 1.20 1.07

Close Chg 29.57 10.57 1.20 1.41 1.26

1.09 -1.00 -0.10 -0.20 -0.37

Close 679.77 Listed cap 50,077.79 mn Payout (%) 62.56

Volume 950 3938614 373550 1916807 846149

Change -64.82 Market cap 42,474.46 mn Div Yield (%) 18.49

Last 60 days High Low 36.70 17.70 1.94 2.50 2.97

27.75 10.57 1.16 1.20 1.07

% Change -8.71 5-Day High 798.66 5-Day Low 679.77

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

2011 Div BR (%) (%)

- 15.00 -

Atlas Insurance Central Insurance Century Insurance EFU General Insurance IGI Insurance New Jub Insurance Pak Reinsurance Premier Insurance Reliance Insurance United Insurance

443 3.56 391 1.12 457 4.22 1250 11.41 970 5.96 989 10.31 3000 4.71 303 3.16 284 5.48 496 1.56

28.98 54.06 7.25 31.49 73.00 55.93 14.52 7.35 9.00 4.50

Paid up Cap(mn)

Open

High

Low

Altern Energy 3426 Genertech 198 Hub Power 11572 Japan Power 1560 KESC 7932 Kohinoor Energy 1695 Kohinoor Power 126 Kot Addu Power 8803 Nishat Chunian Power Ltd 3673 Nishat Power Ltd 3541 Sitara Energy Ltd 191 Southern Electric 1367

7.68 5.14 2.09 5.45 2.30 2.04 5.07 -

7.45 0.45 39.00 1.14 2.09 17.60 2.80 42.74 13.50 15.00 18.05 1.22

7.00 0.49 38.99 1.12 2.15 18.00 3.50 42.99 13.49 15.42 19.05 1.30

6.45 0.45 37.50 0.96 1.34 17.00 2.50 41.25 12.50 14.00 17.11 1.05

Company

Close 1,318.24 Listed cap 95,369.29 mn Payout (%) 104.13

Change -43.91 Market cap 107,612.79 mn Div Yield (%) 8.57

Close Chg

Volume

Last 60 days High Low

6.47 0.45 38.24 1.00 1.56 17.00 2.69 42.49 12.79 14.27 18.31 1.10

109000 64806 2946474 75040 6426996 20001 29954 914424 1209038 1558899 520 203601

9.40 0.75 40.00 1.49 2.57 18.20 4.09 44.19 17.25 17.70 23.26 1.69

-0.98 0.00 -0.76 -0.14 -0.53 -0.60 -0.11 -0.25 -0.71 -0.73 0.26 -0.12

6.45 0.16 36.70 0.96 1.34 15.60 2.35 41.25 12.50 14.00 17.11 1.05

% Change -3.22 5-Day High 1,385.48 5-Day Low 1,318.24

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

7.8R -

Open 904.75 Turnover 4,720 P/E (x) 5.21

GAS WATER AND MULTIUTILITIES Performance of SR Gas Water and Multiutilities Index Open 1,229.47 Turnover 115,355 P/E (x) 7.58 Paid up Cap(mn)

Company Sui North Gas Sui South Gas

5491 12.87 8390 4.39

Open

High

19.02 19.77

18.90 19.90

High Low 1,229.70 1,166.06 Total cos Defaulter cos 2 P/BV (x) ROE (%) 0.86 11.41 Low 18.02 18.77

Close Chg 18.02 -1.00 19.45 -0.32

Close 1,187.38 Listed cap 12,202.80 mn Payout (%) 66.79

Volume 28281 87074

Last 60 days High Low 23.60 23.75

18.02 18.77

% Change -3.42 5-Day High 1,258.65 5-Day Low 1,187.38

2010 Div BR (%) (%) 20 15

2011 Div BR (%) (%)

25B

BANKS Performance of SR Banks Index Open 1,067.96 Turnover 16,050,933 P/E (x) 6.65 Paid up Cap(mn)

Company

Open

Allied Bank Limited Askari Bank XB Bank Al-Falah Bank AL-Habib Bank of Khyber Bank of Punjab BankIslami Pak Faysal Bank Habib Bank Ltd

8603 5.09 62.67 7070 4.46 10.69 13492 5.03 9.95 8786 5.93 28.84 5004 1.78 4.10 5288 6.02 5280 8.86 3.60 7327 4.18 9.50 11021 7.34 118.82 Habib Metropolitan Bank XB 10478 4.95 17.94 JS Bank Ltd 8150 37.80 2.05 KASB Bank Ltd XR 9509 1.26 MCB Bank Ltd 8362 6.93 184.35 Meezan Bank XB 8030 5.40 19.15 National Bank 16818 3.68 49.19 NIB Bank 40437 1.31 Samba Bank 14335 18.88 1.63 Silkbank Ltd 26716 12.19 2.14 Soneri Bank 8026 2.12 4.66 Stand Chart Bank 38716 6.21 7.54 Summit Bank Ltd 8701 2.99 United Bank Ltd 12242 4.92 57.98

High

High Low Close 1,067.38 1,009.93 1,019.98 Total cos Defaulter cos Listed cap 27 - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 0.93 13.94 40.49 Low

Close Chg

63.00 60.00 60.27 -2.40 10.64 9.69 9.81 -0.88 9.99 9.15 9.55 -0.40 28.89 27.40 28.00 -0.84 4.00 3.77 3.99 -0.11 5.89 5.02 5.34 -0.68 3.50 3.27 3.28 -0.32 9.50 8.70 9.02 -0.48 118.25 115.00 117.51 -1.31 17.98 17.10 17.24 -0.70 2.04 1.77 1.89 -0.16 1.55 1.21 1.22 -0.04 183.70 175.14 175.18 -9.17 19.00 18.15 18.58 -0.57 48.99 46.74 46.76 -2.43 1.38 1.25 1.29 -0.02 1.62 1.50 1.51 -0.12 2.24 1.87 1.95 -0.19 4.61 4.00 4.24 -0.42 7.89 7.20 7.70 0.16 3.28 2.80 2.85 -0.14 58.16 55.09 55.15 -2.83

Volume

Change -47.97 Market cap 615,715.84 mn Div Yield (%) 6.09

Last 60 days High Low

68958 68.99 1222133 12.35 1364734 10.96 520004 29.75 10724 5.96 3258657 7.35 62002 4.09 167165 10.73 108294 122.99 243340 22.45 7390 3.00 163578 1.77 1091966 210.95 240075 19.84 2964499 55.80 1663079 1.89 99369 2.18 1605790 3.06 413539 6.69 4569 9.20 160509 4.75 771068 65.01

60.00 9.69 9.15 27.40 3.75 5.00 3.25 8.70 114.10 17.00 1.50 1.21 175.14 16.60 46.74 1.25 1.50 1.87 4.00 7.20 2.67 55.09

% Change -4.49 5-Day High 1,095.18 5-Day Low 1,019.98

2010 Div BR (%) (%)

2011 Div BR (%) (%)

40 10B 25.00 - 10B 20 20B -64.41R - 20B 65 10B - 20B - 33R -105.16R 115 10B 60.00 - 15B 75 25B -154.79R -63.46R - 311R 6 - 20R 50 - 15.00 -

NON LIFE INSURANCE Performance of SR Non Life Insurance Index Open 664.40 Turnover 916,584 P/E (x) 8.86 Paid up Cap(mn)

Company

Adamjee Insurance XD

1237

5.37

Open 52.46

High 54.98

High Low 678.49 634.72 Total cos Defaulter cos 34 22 P/BV (x) ROE (%) 0.46 5.20 Low 49.84

Close Chg 50.05 -2.41

Close 647.15 Listed cap 11,111.34 mn Payout (%) 79.54

Volume 65684

Change -17.25 Market cap 42,099.06 mn Div Yield (%) 8.98

Last 60 days High Low 69.90

49.84

% Change -2.60 5-Day High 687.46 5-Day Low 647.15

2010 Div BR (%) (%) 25

2011 Div BR (%) (%)

10408 4793 6700 26821 39747 4008 734888 11637 10898 1000

29.68 75.00 8.85 39.65 76.12 62.37 18.30 8.99 9.50 6.00

26.00 51.36 7.00 29.92 67.00 52.02 13.52 6.67 6.50 4.15

40 20B 25 50B 10 12.5 30 55B 10.00 20 25B 30 25 - 12.5B - 24B -

High Low 930.60 881.59 Total cos Defaulter cos 4 P/BV (x) ROE (%) 2.29 3.85

Close 883.19 Listed cap 2,290.72 mn Payout (%) 355.53

Change -21.55 Market cap 9,814.05 mn Div Yield (%) 5.97

% Change -2.38 5-Day High 913.28 5-Day Low 883.19

2010 Div BR (%) (%)

2011 Div BR (%) (%)

UPTO 100 VOLUME Symbols

Open

CSMD

10.50

KASBM

High

Low

11.00

10.70

10.50

Change

Vol

0.00

100

4.50

3.50

4.50

0.00

100

MFFL

79.00

79.25

79.00

0.00

100

PHDL

29.90

28.60

29.90

0.00

100

GATI

51.43

49.00

51.43

0.00

JDWSR1

0.00

27.00

26.00

25.65

27.00

0.00

ULEVER

5941.67

9.80

5990.00

5650.00

5659.39

-282.28

UPFL

1692.17

1607.60

-84.57

DMTM

3.25

3.89

3.25

0.00

MZSM

2.47

2.59

2.47

0.00

LIBM

MERIT

8.80

9.80

54.00

51.30

54.00

0.00

FCONM

1.27

1.87

1.25

1.27

0.00

ALNRS

41.00

38.95

41.00

0.00

KSBP

31.75

30.20

30.17

31.75

0.00

SHDT

13.00

12.00

13.00

0.00

NESTLE

4113.02

4120.00

3907.37

3967.76

-145.26

SAPL

150.00

151.25

150.00

0.00

PGCL

20.32

19.33

20.32

0.00

FCIBL

5.00

5.17

4.01

5.00

0.00

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Last 60 days High Low

500

5.96

16.09

15.50

15.50 -0.59

2000

18.00

15.50

EFU Life Assurance

850

9.16

67.50

70.80

65.00

65.19 -2.31

2720

73.25

57.35

SHFA

33.45

34.89

33.45

0.00

TICL

52.00

50.00

52.00

0.00

ZTL

2.50

2.75

2.50

0.00

19.31

19.50

19.31

FINANCIAL SERVICES Performance of SR Financial Services Index Open 259.48 Turnover 8,070,907 P/E (x) 11.40 Paid up Cap(mn)

Company

Open

High

High Low 257.19 225.95 Total cos Defaulter cos 41 6 P/BV (x) ROE (%) 0.15 0.91 Low

Close Chg

AMZ Ventures

225

0.79

0.40

0.39

0.30

0.38 -0.02

Arif Habib Investments

360

4.97

19.45

19.50

19.50 0.05

Arif Habib Limited

Change -42.09 Market cap 26,212.81 mn Div Yield (%) 8.82

-0.33 -2.64 0.35 -0.92 -1.00 2.76 -0.95 -0.28 -0.01 0.00

American Life

Company

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

28.65 51.42 7.60 30.57 72.00 58.69 13.57 7.07 8.99 4.50

Performance of SR Life Insurance Index

Performance of SR Electricity Index High Low 1,366.22 1,285.60 Total cos Defaulter cos 15 1 P/BV (x) ROE (%) 1.14 9.35

28.50 51.36 7.00 29.92 69.35 54.00 13.52 6.67 8.99 4.50

LIFE INSURANCE

ELECTRICITY Open 1,362.15 Turnover 13,558,753 P/E (x) 12.15

28.90 54.80 7.60 31.25 72.00 58.72 15.00 7.25 9.00 4.50

450 16.13

16.32

15.52

15.32

15.32 -1.00

25.27

24.88

24.01

24.01 -1.26

Close 233.07 Listed cap 30,336.44 mn Payout (%) 99.56

Volume 14550 1025000

NOPK

Change -26.41 Market cap 11,853.10 mn Div Yield (%) 6.10

Last 60 days High Low

% Change -10.18 5-Day High 274.59 5-Day Low 233.07

2010 Div BR (%) (%)

0.00

DBCI

2.11

2.25

1.90

2.11

0.00

DWAE

1.12

1.50

0.80

1.12

0.00

CWSM

1.30

1.50

0.35

1.30

0.00

4.33

0.00

9.09

0.00

1.73

1.35

0.00

FNEL

2.00

1.11

2.00

0.00

MODAM

0.65

1.00

0.65

0.00

PAKMI

1.00

1.47

1.00

0.00

CML

1.50

1.90

1.50

0.00

DWSM

0.00

Arif Habib Corp

3750

3.21

IGI Investment Bank

2121

6.11

1.45

1.35

0.90

1.16 -0.29

73106

1.99

0.90

0.00

FRCL

2.56

2.01

2.56

0.00

600 16.62

7.00

6.99

6.10

6.15 -0.85

1490

8.50

6.10

11.5

FZCM

54.92

57.24

54.92

0.00

0.32

0.38

0.21

0.21 -0.11

26523

0.74

0.21

HADC

0.51

0.66

0.51

0.00

HWQS

10.99

11.75

10.99

0.00

0.90

1.00

0.90

0.00

19.61

18.61

19.61

0.00

Invest and Fin Sec Invest Bank

2849

Ist Cap Securities

3166

2.21

2.44

2.10

2.11 -0.10

15402

3.24

1.76

15.25

4.87

14.32

8.10

20B

16.00

1.73

20.53

15.25

4.95

18.00

29.24

BNWM

8.10

23.15

1481317

0.00

1.35

0.00

41.55

4.33

20B

4.90

43.01

9.09

5.38

43.01

DCM

14.00

5.38

41.55

BAWS

0.25

20.20

0.00

4.90

PPP

GWLC

SMCPL

2011 Div BR (%) (%)

0.64

12756

10B

2.07

FDMF

PMI

Ist Dawood Bank

626

Jah Siddiq Co

0.61

7633

1.40

6.38

1.49

1.10

6.20

1.35 -0.05

5.38

5.51 -0.87

JOV and CO

508

2.28

2.39

1.91

2.04 -0.24

JS Global Cap

500

5.19

18.41

18.05

18.05 -0.36

37700

1.96

5752472 272754 1000

1.10

8.34

5.38

1.70

2.23

PSYL

1.70

2.19

2.07 2.23

FUTURE CONTRACTS

3.38

1.91

Symbols

Open

22.94

17.62

FFBL-AUG

46.31

High

Low

Change

Vol

46.25

44.40

45.40

JS Investment

1000 33.33

4.50

4.30

3.70

4.00 -0.50

320367

6.43

3.70

POL-AUG

356.35

350.00

338.54

338.88

-17.47

834000

KASB Securities

1000

3.48

3.75

2.56

3.06 -0.42

14138

4.79

2.56

FFC-AUG

159.82

158.00

151.83

153.84

-5.98

671500

-2.47

462500

Orix Leasing

821

3.03

Pervez Ahmed Sec

775

4.07

1.41

1.47

1.10

1.14 -0.27

310072

1.99

1.10

Security Leasing

363

3.00

5.51

3.00

5.60

3.00

5.00

3.00 0.00

5.00 -0.51

4500

173200

3.00

6.45

1.50

5.00

NBP-AUG

-0.91 1198500

49.70

49.45

47.22

47.23

ENGRO-AUG 137.21

135.00

130.35

130.36

-6.85

410500

ATRL-AUG

119.33

117.50

113.37

113.42

-5.91

383500

MCB-AUG

185.30

184.10

176.04

176.63

-8.67

300000

Stand Chart Leasing

978

2.96

2.21

2.20

2.10

2.10 -0.11

10872

3.00

2.10

PPL-AUG

209.88

207.05

199.39

203.53

-6.35

236000

Trust Inv Bank

586

0.25

1.20

1.00

1.01 -0.19

5001

2.29

0.83

LUCK-AUG

73.03

72.40

69.40

71.24

-1.79

193500

DGKC-AUG

22.07

20.97

21.04

-1.03

188500

NML-AUG

43.65

42.60

41.47

-2.18

104500

EQUITY INVESTMENT INSTRUMENTS

PTC-AUG

Performance of SR Equity Investment Instruments Index

HUBC-AUG

Open 1,475.08 Turnover 1,595,862 P/E (x) 15.49 Company

High Low 1,498.64 1,387.48 Total cos Defaulter cos 52 11 P/BV (x) ROE (%) 0.34 2.21

Paid up Cap(mn)

Open

High

Low

Close Chg

264

1.35

1.30

1.30 -0.05

1st Fid Leasing

Close 1,428.65 Listed cap 29,771.58 mn Payout (%) 104.74

Volume

Last 60 days High Low

2010 Div BR (%) (%)

2011 Div BR (%) (%)

1.25

Atlas Fund of Funds

525

1.64

6.70

7.59

6.15

6.15 -0.55

102504

7.59

6.15

2.2

780

2.60

2.36

2.50

2.34

2.50 0.14

51500

2.90

1.41

113

3.96

3.07

2.85

2.85 -0.22

3000

2.00

% Change -3.15 5-Day High 1,530.61 5-Day Low 1,428.65

B R R Guardian Mod. Elite Cap Modaraba

5000

Change -46.43 Market cap 16,654.80 mn Div Yield (%) 10.51

3.89

2.10

Equity Modaraba

524

5.26

1.24

1.30

1.00

1.00 -0.24

3279

1.90

1.00

Golden Arrow

760

1.92

3.25

3.29

2.84

2.90 -0.35

214820

3.72

2.84

H B L Modaraba

397

3.43

7.01

7.11

7.00

7.00 -0.01

2200

8.44

7.00

Habib Modaraba

1008

7.32

JS Growth Fund

3180

1.92

5.50

5.78

5.21

5.60 0.10

508064

7.30

5.21

12.5

JS Value Fund

1186

0.49

5.09

5.30

4.41

4.67 -0.42

62049

6.10

4.41

5.00

Meezan Balanced Fund

1200

2.72

9.59

10.24

8.59

9.46 -0.13

99491

10.40

8.59

15.5

PICIC Energy Fund

1000

1.92

6.67

6.80

6.50

6.50 -0.17

10210

8.25

6.50

- 10.00

PICIC Growth Fund

2835

2.35

12.34

12.30

11.35

11.44 -0.90

302858

13.84

11.35

- 12.50

PICIC Inv Fund

2841

1.96

5.63

5.37

4.81

4.96 -0.67

186627

6.95

4.81

7.50

454

5.50

10.05

10.02

9.85

9.95 -0.10

13173

11.00

9.50

Stand Chart Modaraba

5.80

8.08

8.04

7.70

8.00 -0.08

30946

8.50

11.67

11.70

10.67

-1.00

77500

39.20

38.45

38.15

38.45

-0.75

47000

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

Total Volume 695,757 6,110 273,832 177,850 41,300 921,000 473,443 112,683 94,750 54,700 140,000 14,375 2,234,701 272,500 19,520 632,606 19,166 13,500 308,199 6,600 236,160 6,500 32,580 29,430 107,500 6,924,762

Total Value 13,302,364 245,092 2,240,120 746,977 3,684,529 6,893,305 7,814,663 11,499,556 3,185,667 6,513,291 4,097,910 465,362 19,798,788 14,780,034 2,689,066 23,387,946 256,037 196,583 9,933,873 724,978 2,556,789 1,698,655 5,526,314 258,871 4,711,379 147,208,148

MTS Rate 21.00 18.00 18.00 16.06 18.00 18.00 16.00 18.00 18.00 17.13 17.00 21.00 18.01 18.00 18.03 18.09 18.11 17.39

BOARD MEETINGS Company

Date

Bank Alfalah Ltd

Fauji Fertiliser Bin Qasim Ltd

KSE 100 INDEX

Fauji Fertiliser Co

Pakistan Telecommunication Co Ltd

9:30

08-Aug

10:00

Pakistan Petroleum Ltd

08-Aug

10:30

Pakistan State Oil Comp Ltd

09-Aug

Unilever Pakistan Ltd

09-Aug

10:30

International Industries Ltd

11-Aug

10:00

Unilever Pakistan Foods Ltd

11-Aug

BOC Pakistan Ltd

12-Aug

Pakgen Power Ltd

12-Aug

10:00

Bata Pakistan Ltd

18-Aug

11:00

Tri-Pack Films Ltd

22-Aug

11:30

Packages Ltd Indus Motor Comp Ltd

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position

21.13

Support 1

11,168.15

MA (5-day)

11,928.54

Support 2

10,961.20

MA (10-day)

12,095.52

Resistance 1

11,714.10

MA (100-day)

12,083.54

Resistance 2

12,053.10

Target Price

Recommendations

Hold

Arif Habib Ltd

21.1

Buy

Neutral

AKD Securities Ltd

23.91

Buy

TFD Research

20.15

Arif Habib Ltd AKD Securities Ltd

45.52

TFD Research

47.75

Neutral

Technical Outlook Technical Analysis

Leverage Position

RSI (14-day) 45.08 MTS Shares `000 94.75 MA (200-day) 11,894.12 Pivot 11,507.15 MA (10-day) 46.57 MTS Rs `000 3,185.67 42.85 MTS Rate 18.00 KSE 100 INDEX closed down -471.07 points at 11,375.09. Volume was MA (100-day) 40.15 ** NOI Rs (mn) 32.85 88 per cent above average and Bollinger Bands were 105 per cent MA (200-day) Free Float Shares (mn) 326.94 Free Float Rs (mn) 14,758.00 wider than normal. As far as resistance level is concern, the market will see major 1st resistance level at 11,714.10 and 2nd resistance level at Target price for Dec-11 & **Net Open Interest in future market 12,053.10, while Index will continue to find its 1st support level at 11,168.15 and 2nd support level at 10,961.20. KSE 100 INDEX is currently 4.4 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of INDEX at a relatively equal pace. Trend forecasting oscillators are currently bearish on INDEX. Momentum oscillator is currently indicating that INDEX is currently in an oversold condition.

FFBL closed down -0.93 at 45.14. Volume was 185 per cent above average (trending) and Bollinger Bands were 12 per cent wider than normal. FFBL is currently 12.4 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of FFBL at a relatively equal pace. Trend forecasting oscillators are currently bullish on FFBL.

Brokerage House

Target Price

Recommendations

Brokerage House

Buy

Arif Habib Ltd

64.99

Buy

AKD Securities Ltd

Arif Habib Ltd

TFD Research

Technical Analysis

Leverage Position

24.30 MTS Shares `000 632.606 52.52 MTS Rs `000 23,387.95 53.64 MTS Rate 17.00 63.13 ** NOI Rs (mn) 82.14 Free Float Shares (mn) 398.12 Free Float Rs (mn) 18,616.20 Target price for Dec-11 & **Net Open Interest in future market

Buy

Technical Analysis

Target Price

Recommendations

Arif Habib Ltd

194

Buy

TFD Research

164.95

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

11.33 12.19 15.63 17.30 Free Float Shares (mn) 585.06

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

29.43 258.87 2.50 6,184.09

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

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

43.24 MTS Shares `000 54.70 160.24 MTS Rs `000 6,513.29 145.68 MTS Rate 18.00 136.18 ** NOI Rs (mn) 81.07 Free Float Shares (mn) 466.49 Free Float Rs (mn) 71,839.05 Target price for Dec-11 & **Net Open Interest in future market

PTC closed down -1.00 at 10.57. Volume was 170 per cent above average FFC closed down -4.64 at 154.00. Volume was 102 per cent above aver(trending) and Bollinger Bands were 64 per cent wider than normal. age and Bollinger Bands were 51 per cent wider than normal. PTC is currently 38.9 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indica-

FFC is currently 13.1 per cent above its 200-day moving average and is displaying a downward trend. Volatility is high as compared to the average

tors reflect moderate flows of volume out of PTC (mildly bearish). Trend volatility over the last 10 trading sessions. Volume indicators reflect volume forecasting oscillators are currently bearish on PTC. Momentum oscillator flowing into and out of FFC at a relatively equal pace. Trend forecasting is currently indicating that PTC is currently in an oversold condition.

Brokerage House

oscillators are currently bearish on FFC.

Pakistan Petroleum Ltd

Brokerage House

Target Price

Recommendations

405

Buy

Arif Habib Ltd

254.9

Neutral

TFD Research

239.15

Arif Habib Ltd AKD Securities Ltd

386.5

Positive

TFD Research

388.3

Positive

42.83 MTS Shares `000 140.00 39.26 MTS Rs `000 4,097.91 37.81 MTS Rate 16.00 37.51 ** NOI Rs (mn) 7.40 Free Float Shares (mn) 810.01 Free Float Rs (mn) 30,974.71 Target price for Dec-11 & **Net Open Interest in future market

Leverage Position

Technical Analysis

Leverage Position

28.35 MTS Shares `000 6.50 361.47 MTS Rs `000 1,698.65 343.47 MTS Rate 18.09 319.14 ** NOI Rs (mn) 215.16 Free Float Shares (mn) 107.95 Free Float Rs (mn) 36,435.63 Target price for Dec-11 & **Net Open Interest in future market

Buy Positive

Technical Outlook

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

Recommendations

Technical Analysis

Leverage Position

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

35.20 MTS Shares `000 210.13 MTS Rs `000 209.80 MTS Rate 208.30 ** NOI Rs (mn) 37.76 Free Float Shares (mn) 247.73 Free Float Rs (mn) 50,237.42 Target price for Dec-11 & **Net Open Interest in future market

NBP closed down -2.43 at 46.76. Volume was 87 per cent above average HUBC closed down -0.76 at 38.24. Volume was 174 per cent above aver- POL closed down -17.27 at 337.52. Volume was 113 per cent above aver- PPL closed down -5.57 at 202.79. Volume was 238 per cent above averand Bollinger Bands were 8 per cent narrower than normal. age (trending) and Bollinger Bands were 4 per cent narrower than normal. age and Bollinger Bands were 125 per cent wider than normal. NBP is currently 25.9 per cent below its 200-day moving average and is dis- HUBC is currently 2.0 per cent above its 200-day moving average and is POL is currently 5.8 per cent above its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators the average volatility over the last 10 trading sessions. Volume indicators volume flowing into and out of NBP at a relatively equal pace. Trend forereflect volume flowing into and out of POL at a relatively equal pace. Trend casting oscillators are currently bearish on NBP. Momentum oscillator is cur- reflect moderate flows of volume out of HUBC (mildly bearish). Trend fore- forecasting oscillators are currently bearish on POL. Momentum oscillator playing a downward trend. Volatility is extremely high when compared to the

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

rently indicating that NBP is currently in an oversold condition.

casting oscillators are currently bullish on HUBC.

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

age (trending) and Bollinger Bands were 0 per cent narrower than normal. PPL is currently 2.6 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of PPL at a relatively equal pace. Trend forecasting oscillators are currently bearish on PPL.

2:30

23-Aug

11:30

24-Aug

10:00

05-Sep

Shabbir Tiles & Ceramics Ltd

06-Sep

3:00

Dynea Pakistan Ltd

08-Sep

10:00

Neutral

Technical Outlook Technical Analysis

10:00

Kot Addu Power Comp Ltd

1:00

TECHNICAL LEVELS

Positive

Leverage Position

Accumulate

Leverage Position

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

Brokerage House

Technical Outlook

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

Recommendations

50 42.1

Recommendations

Pakistan Oilfields Ltd

Target Price

49.05

Target Price

Technical Analysis

Hub Power Co Ltd

National Bank of Pakistan

AKD Securities Ltd

Brokerage House

Time

07-Aug

International Steels Ltd

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 31.22 1.95 1.90 30.45 59.20 58.10 22.65 41.70 40.80 32.85 23.70 23.45 27.83 15.25 15.20 8.83 48.25 46.50 23.33 9.45 9.10 19.68 4.25 3.90 11.97 326.80 320.65 27.58 110.95 109.40 32.90 9.15 8.70 33.08 3.20 3.10 24.12 4.95 4.55 22.00 1.00 0.90 26.22 20.50 20.10 17.98 1.55 1.35 32.15 1.80 1.75 29.27 29.90 29.25 40.12 63.20 61.20 12.22 127.75 126.15 35.44 8.65 8.25 17.15 3.30 3.15 45.09 44.15 43.15 43.24 150.65 147.30 43.06 115.60 113.65 42.83 37.50 36.75 20.20 139.50 138.10 27.57 197.55 194.05 22.32 1.85 1.65 36.10 0.95 0.85 27.25 1.75 1.65 44.21 5.20 4.90 44.41 41.50 40.50 22.55 1.20 0.85 17.73 10.40 10.15 44.27 69.45 67.80 24.99 172.30 169.45 25.42 1.55 1.30 24.31 46.00 45.25 14.65 16.35 16.00 17.52 17.00 16.60 24.27 1.25 1.20 36.50 2.55 2.35 17.11 40.50 39.85 27.33 137.00 135.00 22.14 1.40 1.20 28.15 1.00 0.85 23.40 1.50 1.35 19.67 3.40 3.10 28.36 333.40 329.25 35.21 198.35 193.85 56.61 63.25 61.30 13.13 214.75 211.55 11.35 10.30 10.00 24.19 202.75 200.25 21.34 17.70 17.45 21.58 14.15 13.85 28.65 18.85 18.25 29.88 1.10 1.00 11.67 1.45 1.15 17.96 54.10 53.05 16.32 1.20 0.95

1st

2nd

Resistance 2.10 2.20 62.20 64.10 44.25 45.90 24.60 25.15 15.45 15.60 53.40 56.75 10.40 11.00 5.25 5.90 345.05 357.15 115.55 118.55 9.95 10.40 3.45 3.60 5.80 6.30 1.35 1.55 21.55 22.25 2.05 2.35 1.95 2.05 31.25 31.90 69.00 72.80 132.40 135.55 9.45 9.85 3.65 3.85 46.15 47.10 157.45 160.85 118.85 120.15 39.00 39.75 143.65 146.40 205.25 209.45 2.30 2.60 1.10 1.20 2.05 2.15 6.00 6.50 43.25 44.00 2.00 2.50 11.25 11.80 72.55 74.05 180.90 186.55 1.95 2.20 48.25 49.75 17.35 18.05 18.25 19.05 1.35 1.45 2.95 3.15 42.30 43.50 143.00 147.00 1.85 2.05 1.40 1.60 2.00 2.25 4.25 4.80 345.30 353.15 206.90 211.00 67.95 70.70 224.10 230.20 11.15 11.70 208.85 212.50 18.60 19.20 15.00 15.55 19.95 20.50 1.35 1.55 2.10 2.45 57.15 59.20 1.65 1.90

Pivot 2.05 61.10 43.35 24.30 15.40 51.60 10.05 4.90 338.90 114.00 9.55 3.35 5.40 1.20 21.15 1.85 1.90 30.60 67.00 130.85 9.05 3.50 45.10 154.05 116.90 38.25 142.25 201.75 2.10 1.05 1.90 5.70 42.25 1.70 10.95 70.95 178.00 1.75 47.50 17.00 17.80 1.30 2.75 41.70 141.00 1.65 1.25 1.80 3.95 341.20 202.40 66.00 220.90 10.85 206.35 18.30 14.70 19.35 1.25 1.80 56.15 1.45

KSE drops 4pc on panic selling Nawaz Ali KARACHI: As a result of declining global capital markets, Karachi Stock Exchange (KSE) also remained under bearish spell on Friday where selling pressure intensified as it ended near 4 per cent down to 14-weeks low due to heavy selling across the board. The benchmark KSE-100 index dropped 471 points - 3.98 per cent to close at 11,375 points, KSE-30 index lost 459 points - 4.09 per cent to close at 10,769 points and KSE allshare index decreased by 323 points - 3.94 per cent to close at 7,891 points.

Merger of Johnson & Phillips KARACHI: Johnson & Phillips Industries (Pakistan), Johnson & Phillips EMO Pakistan and Elmetec will be merged with and into Johnson & Phillips (Pakistan) to make a large resource base company. According to the scheme of arrangement sent to KSE, the merger would lead to an increased asset base and the size of the entity. It will also assist the management to have access to more external funds at competitive rates and the larger size of the entity would provide greater comfort to the potential creditors. The merger would improve growth prospects and enable the Company to undertake larger assignments. The authorised share capital of Johnson & Phillips (Pakistan) after the merger will be enhanced from Rs80 million to Rs400 million. The merger is subject to the sanction of the court of law, SECP and meeting of other regulatory requirements.-APP

No #1

"A massive single day fall seen at KSE was an extension of global equity sell-off on fears about the Euro zone debt crisis and the US economic recovery", said Zoheb Zaheer analyst at Aba Ali Habib Securities. A major sell-off was witnessed in global markets on growing concerns about the US economy heading towards another recession and on the concerns that the euro zone debt crisis could spread to Italy and Spain as well. Institutions opted to sell indiscriminately on fears of further foreign outflow from the equities. Almost all the leading

Continued from page 8

community infrastructures and services, and strengthening local government offices to get public services running again in over 1,400 villages. As Pakistan observes the first year landmark following the worst floods in the country's history UNDP continues to touch lives of beneficiaries across 29 most-affected districts. According to information, during the period 3,097 infrastructure restoration projects were completed. A senior official while enumerating the details said, 170,000 persons earned a living again under the cash-for-work initiative while 150,000 persons benefitted from solar lights and pumps. Moreover, around 26,937 beneficiaries received agriculture and livestock support, 6,130 entrepreneurs received small business grants, 4,900 persons received vocational and skills training for livelihood support and around 1,000 houses constructed for the homeless. The official said over 4,000 received help in getting ID cards and legal documents. The official said ERP is being executed through an extensive network of around 38 implementing partners which include NGOs as well as government departments and agencies. UNDP's ERP is one of the largest initiatives launched anywhere in the world. UNDP Administrator Helen Clark had also visited Pakistan in February this year to view the ERP activities. - APP

No #2

Continued from page 8

judges after their verdict had become a public property. On May 18, a larger bench headed by Chief Justice of Pakistan in its detailed judgment on the PCO judges' intra-court appeals, held that since the November 3, 2007 actions of former president Pervez Musharraf were declared unconstitutional by it in its July 31, 2009 order and later not validated by the Parliament in the 18th Amendment, so all the PCO judges ceased to hold offices. The court had directed the federal law secretary to issue notifications regarding the removal of these judges because they were no more entitled to hold their offices after April 20, 2010, the day the 18th Constitutional Amendment was adopted. Seven judges have been facing contempt of court proceedings after they decided to challenge apex court's verdict on the issue. These were Justice Hasnat Ahmed Khan, Justice Syed Shabbar Raza Rizvi, Justice Syed Hamid Ali Shah, Justice (R) Iftikhar Hussain Chaudhary, Justice Syed Sajjad Hussain Shah and Justice Yasmin Abbasey and Justice Jahanzaib Rahim. - APP

No #3

base shares closed on their lower circuits, he added. Market was completely in the grip of bears with the start of the first session and opened with a loss of 112 points. Losses then kept on accumulating as the session move on. The benchmark index lost more than 500 points due to continued selling across the board. At about 11:30 am index touched an intra-day low of 11,301 points (-ve 544). Many blue chip stocks including OGDC, NBP, MCB, ENGRO closed at their lower circuits of the day. Though, market saw a heavy decline and foreign investors' participation remained on the

lower side. According to NCCPL data, offshore investors did a net selling worth $0.48 million o Friday. About 113.1 million shares exchanged hands during the day which was 64.6 million shares more as compared to a turnover of 48.5 million shares a day earlier. Lotte Pakistan was the top traded scrip of the day with 11.93 million shares followed by Fauji Fertilizer Bin Qasim with 7.03 million shares and KESC with 6.42 million shares. Out of total 303 active issues; 227 declined and 16 advanced while 60 issues remained unchanged.

Hong Kong shares sink to 10-month low HONG KONG: Hong Kong and China shares fell, with the Hang Seng index posting their worst one-day decline since the 2008 financial crisis on Friday, with more losses seen as investors cut positions in cyclicals in a global sell off. Fears of a worsening crisis in Europe and stalling growth across the West combined to sink the Hang Seng Index to a 10-month low with the high beta stocks among the highest percentage losers among benchmark components. "I doubt we are seeing a repeat of the '08 crisis," said Eng Teck Tan, a Singaporebased investment manager with Treasury Asia Asset Management. "Local Hong Kong fund managers have already shown their hands and parked themselves in the defensives in the last few weeks; it's the foreigners who are liquidating their long positions." Tan added. The Hang Seng Index finished down 4.3 per cent at 20,946.1 points, the lowest since Sept 1, 2010, while turnover at HK$125 billion was at its highest since November.

Continued from page 1

The executive committee of PR is also being strengthened to further improve management. The CCOR reiterated that the Government of Pakistan was fully committed to reinvigorate PR to provide reliable, competitive and economical service of high standards to the people of Pakistan. All members of CCOR showed satisfaction in the comprehensive plan to restructure PR to play its vital role in economic growth of Pakistan and service to the people of Pakistan. The restructuring of PR shall be fast tracked to ensure implementation in the shortest period of time. The meeting was attended by Haji Ghulam Ahmed Bilour, Minister for Railways, Maula Bakhsh Chandio, Minister for Law, Justice and Parliamentary Affairs, Ghaus Bux Khan Mahar, Minister for Privatisation, Dr Nadeem ul Haque, Deputy Chairman Planning Commission, finance secretary, secretary Railways, and officials of Railways. - APP

Stock Review & Continuations

Saturday, August 6 , 2011

The benchmark index fell below consecutive chart supports, first at its 2011 low at around 21,508, then at its June 2010 high around 20,957. Its next support is seen at its August 2010 low near 20,370. Cyclicals were hit particularly hard. The Hang Seng Composite Index for Materials was down 5.5 per cent with Citic Pacific, the top beta play among Hang Seng components, down 6.6 per cent. Hutchison Whampoa Ltd lost 8.3 per cent, erasing gains from the last three weeks in the run up to its first-half earnings results on Thursday that fell short of analysts' forecasts as its 3G business, expected to be a key driver of growth going forward, struggled. Its decline was exacerbated by a swift unwinding in warrant positions held largely by retail investors in Hong Kong, who use these leveraged instruments to speculate on large cap names, traders said. SHANGHAI OUTPERFORMS ASIA In China, the Shanghai Composite Index finished down 2.2 per cent at 2,626.4

points, tracking the slump in global equities and extending its weekly losing streak into a third straight week. A-share turnover reached its highest this week as the Shanghai benchmark bounced off its lowest levels in 10 months before closing above the lows in June 2011, which has supported the index for much of the last two weeks. On a weak day across Asia, the Shanghai market was a relative outperformer. "Losses are capped in the Ashare market because they are closed, insulated from fast money from overseas, said Hong Hao, executive director of CICC's research department. Losses on Friday so far plunged the Shanghai benchmark further into oversold territory on the charts with its relative strength index value hitting its lowest since end May. PetroChina Co Ltd's nearly 2.6 per cent decline on the day brought it to 10.2 yuan, it's lowest since October last year. At 10.3 yuan, the stock is about 5 per cent off its all-time lows recorded during the 2008 financial crisis.-Reuters

LSE witnesses bearish trend LAHORE: The Lahore Stock Exchange on Friday witnessed bearish trend with LSE-25 index loosing 149.33 points as it opened with 2911.39 and closed at 2762.06 points. The market's overall situation, however, corresponded to an upward trend as it remained at 3.377 million shares to close against previous turnover of 1.632 million shares, showing a difference of 1.744 million shares. While, out of the total 92 active scrips only 2 moved up, 37 remained equal and 53 shed value.

Flying Cement Company and Adamjee Insurance Company were major gainer of the day by recording increase in their per share value by Rs0.98 and Rs0.44 respectively. Pakistan Oil Fields, MCB Bank, and OGDC lost their per share value by Rs 10.00, Rs 9.17 and Rs 7.32 respectively. The volume leader of the day included The Bank of Punjab with 761,268 shares, Silkbank with 400,786 shares and Lotte Pakistan PTA with 265,052 shares.-APP

FTSE slumps to worst week in three years LONDON: Banks and commodity stocks fell sharply on Friday as Britain's top share index extended losses into a sixth straight trading day, roiled by a global debt crisis and unmoved by US jobs data easing fears of another economic recession. London's blue chip index closed down 146.15 points, or 2.7 per cent at 5,246.99, as investors continued to pile funds into safer havens such as bonds, gold and the Swiss franc. The FTSE 100 came off a session low of 5,202.62, but concerns over the health of the global economy remained despite.-Reuters

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of transport for low income people and directed that all bottlenecks in the way of Yamaha investment and setting up manufacturing plant in Pakistan be removed on priority and the process be stepped up. He said that the government was working hard to transform the country into one of the most attractive and business friendly places in the region. The President said that the government was also committed to ease and simplify the procedures to facilitate investors and the businessmen. - NNI

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It may be mentioned that to achieve its revenue targets of Rs1,952 billion of current fiscal year, FBR is considering various innovative options to raise revenue to bring more people under tax net. The ultimate aim of the FBR is to enhance tax to GDP ratio which is dismally low presently as compare to that of other regional countries.

KSE approves Engro Foods listing KARACHI: Karachi Stock Exchange (KSE) has approved formal listing of Engro Foods on completion of the relevant listing requirements. According to KSE, trading in the shares of Engro Foods on the ready board will commence from August 10. The marketable lots of the company will one share of Rs10.00 each while the opening price will be Rs25.00 per share. The shares of the Company had already been declared as eligible shares by the Central Depository Company (CDC).-APP

ISE-10 observes falling trend ISLAMABAD: The Islamabad Stock Exchange witnessed bearish trend here on Friday, the index fell by 136.55 points at 2529.63 as compared to a day earlier. M.M. Hassan, Manager, First National Equity said that persisting bearish trend in international markets due to US debt concerns was the main reason of panic selling by local institutions. He said that the major investors had accumulated blue chips counters at lower level of index. Zaheer Ahmed, Senior Equity Dealer, Ismail Iqbal, told that the panic selling by major institutions caused bearish trend in the markets because of decline in the major international markets. He said that the increase in volume showed major buying at lower level of index was positive aspects. He added that keeping in the view financial corporate results to be expected in the near future, the market was oversold at this level. Total shares traded were 97,507, which were up by 43,857 as compared to previous day. Lotte PTA emerged the volume leader with 46,000 shares, followed by Bank of Punjab with 20,000 shares and Fauji Fertilizer Bin Qasim with 10,000 shares.-APP

Nikkei hits 5-month low TOKYO: Japanese stocks on Friday tumbled to their lowest since the post-quake rout in March as investors ran for exits after the worsening financial crisis in Europe compounded anxiety over a weak US economy that has come close to stalling. Retail investors and foreigners were spotted offloading aggressively, but institutional players were not completely liquidating their positions, instead continuing to slash riskier bets and protect their portfolios. While 32 of 33 sub-sectors on the Topix were lower, fund managers shifted into retailers and other domestic demand related shares, selling commodity stocks including oil refiners and trading houses, which were pummeled as US crude prices dropped sharply. "This is not only about some bad data from the US economy -- look how Italian and Spanish CDS spreads have widened overnight -that's what's really pushing the market down," said Takashi Aoki, a senior fund manager at Mizuho Asset Management. Aoki added that Friday's sell-off was exacerbated by some contracttermination related to selling by hedge funds. The benchmark Nikkei average fell 3.7 per cent to 9,305.04, while the broader Topix dropped 3.3 per cent to 809.32. The Nikkei hovered around its support at 9,300, where the index stood for some time after a slide that followed the March 11 earthquake and tsunami. Soon after the open it hit an intraday low of 9,264.09. For the week, the index shed 5.4 per cent. Analysts at brokerage CLSAsaid that below chart support at 9,300, major support is seen in the 8,8008,900 area. Asharp fall through this level would open the door for a test of the next support level at 7,800, analysts said..-Reuters

37.37pc returns for FY11

AMMF becomes open-end fund Staff Reporter KARACHI: Al Meezan Mutual Fund (AMMF), a closed-end equity fund managed by Al Meezan Investment Management (Al Meezan) since 1995 has now been converted into an open-end equity fund with effect from August 5, 2011. The fund has provided a cumulative return of 883 per cent since its inception till June 30, 2011 with return of 16.45 per cent on annualized basis. Al Meezan has completed all regulatory and statutory formalities of the conversion process. On the basis of swap ratio of 1:1, the existing share holders of the closed-end fund would receive one unit of openend fund in lieu of one share held of the closed-end entity. The conversion will protect investors' interest by providing them the following benefits: 1) investors would be able to buy and sell units at price based on the net asset value of the fund instead of discounted market price of the shares quoted on the stock exchange, 2) investors will have the opportunity to increase their investment in the fund whereas they were unable to do so in case of a closed-end structure and 3) after the conversion, investors will have the ability to redeem the units with Al Meezan anytime they want to, instead of going to the stock market and looking for a buyer of shares

of the fund, thus providing greater liquidity. The Board of Directors' of AMMF in the meeting held on August 4, 2011, approved financial results for the fiscal year ended June 30 2011 and declared a final cash dividend of Rs1.6 per share of Rs10/ each. Including the interim payout of Rs0.5 per share, the total payout for the year was Rs2.1 per share. In addition, the board also approved an interim divided of Rs0.15 per share for the period July 01 to July 31, 2011. The fund has provided annual return of 37.37 per cent to its unit holders in FY-11. The net assets of the fund as on July 31, 2011 stood at Rs1,724 million. Al Meezan has been awarded management quality rating of AM2 by JCR-VIS denoting High Quality Management. It is currently managing over Rs30 billion in assets under management in 6 open-end funds, 1 close-end fund and a pension fund making it one of the leading and the largest Shariah compliant asset management company in Pakistan. Al Meezan has recently awarded 'Best Islamic Asset Management House in Pakistan' (Islamic Finance Awards) by Asset Triple A Awards, Hong Kong for excellence in the Islamic Mutual Fund Industry reflecting the trust and confidence of both individual and institutional investors.

Indian shares slip 2pc on global selloff MUMBAI: Indian shares closed at their lowest level in nearly 14 months on Friday, falling 2.2 per cent, following fresh worries of a global economic downturn that sparked a slide in markets globally. The main stock index fell 4.9 per cent for the week, its biggest weekly decline since the week of Oct. 26, 2010, and its second consecutive weekly loss. World stocks sank for an eighth straight session of losses on Friday, with investors racked by worries about the slowing global economy and the dangerous spread of euro zone debt anguish into Italy and Spain. In Asia, the MSCI's measure of Asian markets other than Japan tumbled 4.5 per cent, while Japan's Nikkei lost 3.7 per cent. "We were largely drifting along with what is happening in the US and European markets. If there is no big negative news coming out from Western markets, we could see a recovery," said Rikesh Parikh, Vice President, equities at Mumbai's Motilal Oswal Securities. The 30-share BSE index ended at its lowest closing level since June 2010 at 17,120.39 points, down 2.2 per cent its biggest single-day fall since early May. It had fallen to a near 14-month low of 16,990.91 at one stage. Only three of its components ended in positive territory. Shares in frontline financial and technology firms suffered the most, prompted by worries over growth outlook and fears of a selloff by foreign investors. Top-listed firm Reliance Industries, a favourite with foreign funds, slid to its lowest close since April 1, 2009. "I do expect that India would be one of the focus markets, once liquidity starts flowing again after a couple of weeks," said Ambareesh Baliga, chief operating officer at Way2Wealth Securities. India's main stock index has declined 15.6 per cent so far in 2011, making it one of the worst performing markets globally. Foreign funds' interest has

wavered since the second half of July, paring net inflows over the past five weeks to $2.8 billion. So far in August, they have been net sellers of $304 million in equities. "Unlike 2008, we think India could outperform regional markets from here, because of muted foreign inflows, significant underperformance and potential improvement in domestic macro data points," the Royal Bank of Scotland Asia Securities said in a note to clients on Friday. Tata Consultancy Services fell 3.5 per cent, while smaller rivals Infosys and Wipro lost 4.4 per cent and 2.2 per cent, respectively. Financial stocks, already under pressure after last week's larger-than-expected 50 basis points increase in key rates by India's central bank, slipped further as investors fretted over growth prospects and cut positions in the sector. Largest lender State Bank of India was down one per cent, while private sector rivals ICICI Bank lost 2.7 per cent and HDFC Bank fell 0.7 per cent. The sectoral index slipped 1.7 per cent. Energy major Reliance Industries touched a low of 779 rupees, its lowest level in more than 28 months. The stock has already lost a quarter of its value so far in 2011, mainly weighed down by worries of slowing production from its showcase gas fields off India's east coast. Auto shares declined on worries over demand growth after finance minister Pranab Mukherjee said on Thursday the government may consider cutting subsidy on diesel prices. State-set diesel prices in India are nearly a third lower than petrol prices, boosting demand for diesel vehicles. Mahindra and Mahindra fell 3.6 per cent, Tata Motors lost 2.6 per cent, while Bajaj Auto ended 1.4 per cent lower. The 50-share NSE index fell 2.3 per cent to 5,211.25 points.In the broader market, 1,271 declines far outnumbered the 191 advances, on heavy volume of about 805.2 million shares.-Reuters

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Gilani inaugurates two bypasses

Center to back Sindh on army in Karachi: PM Says panel to announce new province(s)

MULTAN: Prime Minister Syed Yousuf Raza Gilani unveiling the plaque to inaugurate the Northern Bypass Phase-I.-APP

Ban on fish export to EU likely to go

Mullen upbeat on Pak-India talks

try and accordingly reported unhygienic conditions in which the fish products were being handled by authorities dealing with the export of fisheries. EU conveyed to Pakistan that until these exports complied with their sanitary and environmental requirements, their entry in the EU will not be allowed. Subsequently the EU de-listed all Pakistani seafood exporters in early 2007. To get the ban lifted Marine Fisheries Department of Ministry of Food and Agriculture took serious efforts to meet the hygienic and environmental stands regarding fish catch and packaging and eventually prevailed upon trade officials of EU to lift ban on fish import from Pakistan.

WASHINGTON: Terming the recent talks between India and Pakistan as encouraging, a top Pentagon official has expressed hope that the discussions will continue. "I'm actually encouraged very specifically with the discussions between Pakistan and India in recent weeks and months," Admiral Mike Mullen, Chairman of the Joint Chiefs of Staff said at a news conference here. Mullen was referring to recent talks held between the foreign ministers of India and Pakistan in New Delhi on July 27.Indo-Pak talks are encouraging, he said. "At least if I understand both governments, those are going to continue, and I hope that they do. I consider that to be a very positive step," Mullen said. - Online

TFD Report KARACHI: Officials of European Union are considering to lift ban from importing fish from Pakistan in all member countries after having assurance from Islamabad that all environmental and hygienic standards would be kept in view of while fish catch and packaging. According to experts if ban is lifted it would brought up to $15 billion foreign exchange reserves from exporting fish to European countries which has been one of the potential export market for the country since long. It may be recalled that EU imposed a ban on the import of fisheries from Pakistan in 2007 after their inspectors visited several sites in the coun-

It may be pointed out that fisheries play a vital role in the economy as it provides employment to approximately 300,000 fishermen directly. In addition, almost 400,000 people are employed in ancillary fishing industries. There has been a substantial increase in fish exports of Pakistan during the last 3 years that have expanded by 30.5 per cent from July 2010 to May 2011, according a report of the State Bank of Pakistan. During this period Pakistan's fish export increased to $258.161 million in comparison to $197.829 million in July-May 2009-10. The resumption of fish export to the EU is great news for Pakistan as almost 25 per cent of seafood export of the country in 2006 was to the EU.

Political turmoil may delay 26 hydro projects TFD Report KARACHI: Presently 26 hydropower projects of total 37,312 megawatts electricity are in either pipeline or in feasibility stage in the country which according to experts may fall prey to unending political chaos resulting from long-standing face-off among various state organs. Out of these 26 projects most are planned on River Indus of which feasibilities of more than ten projects with electricity generation capacity of above 31,000 megawatts are expected to be completed soon while feasibility studies of 14 projects have yet to be started. The 12 projects which are in the pipeline are Bunji dam

having capacity to produce 7,100 megawatts of electricity, Bhasha Dam (4,500MW), Dasu Dam (4,320MW), Pattan Dam (2,800MW), Thakot Dam (2,800MW), Neelum Jhelum Dam (96MW), Azad Pattan Dam (650MW), Suki Kinari Dam (840MW), Kohala Dam (1,100MW), Yulbo Dam (3,000MW), Tungas Dam (2,200MW) and Skardu Dam (1,600MW). The engineers have declared the construction of dams as a must for the country, saying rental power projects are an interim solution. According to knowledgeable sources, for the construction of dams private sector is totally dependent upon government's codal formalities which are mostly fulfilled for those

projects which serves vested interests of powerful few. Sources said that at the residence of highest powerful person of the country there is a cell established for the purpose of granting approvals to big projects of strategic nature in return of huge sum of money as commission in advance. Thereafter, during the project's construction phase two more installments of commission are also issued to the officials of the same cell. According to sources, most of the 26 hydropower projects are being delayed intentionally because some power people of the government are willfully halting their implementation owing to growing uncertainty at the political front.

UNDP helps rehabilitate nearly one million ISLAMABAD: United Nations Development Programme (UNDP) has provided assistance to more than 915,000 flood affected individuals under its Early Recovery Programme (ERP) launched last year. The UNDP worked on restoring livelihoods through job creation, repairing basic See # 1 Page 7

MULTAN: has said that the manifesto committee was working for formation of new provinces in the country, adding that, federal government would back provincial government if it is interested to call army in Karachi. He said, there is a difference between situation in Karachi and Balochistan. We are facing law and order situation because of situation in Afghanistan, he said. The Premier while responding to a question said that the law enforcement agencies have been directed to review situation in Karachi. Provincial governments are responsible for law and order situation in their respective province, he said. Replying to a query, he said, all stakeholders would be consulted before formation of new provinces in the country. It depends on manifesto committee when it will announce the formation of new provinces, he said. Replying to a question, he said, it is wrong to say that US will freeze country's nuclear assets. India was not involved in everything, he clarified. We will not go against our country's interest, he said. India was not involved in every step against Pakistan, PM underlined. Gilani has said that a charter committee was working for new provinces and was engaged in consultation with all stakeholders. Replying a question, the prime

minister said that the situations in Karachi and Balochistan are different. The law and order in Karachi is a provincial matter. He said the centre will help the province for maintenance of law and order. Gilani also said his government has maintained working relationship with all political parties. In another question, PM was of the view that local bodies' elections is a provincial matter hence government cannot give any sort of dictation to do so. He further added that floods caused massive destruction of 10 billion dollars adding international organisations are lending a hand as destruction is so massive that it could take ample time for rehabilitation and reconstruction of shattered areas. Earlier, the Prime Minister inaugurated southern and northern bypass projects worth over Rs2.2 billion here on Friday. The 16-km long southern bypass was completed in 18 months at a cost of Rs1.57 billion while 9-km northern bypass (from LMQ Road to Bosan Road) cost Rs653.220 million. The two bypasses will not only ease traffic congestion in the city but also improve traffic flow from north, south and other directions. Traffic flow particularly from Bahawalpur to Lahore, Muzaffargarh, Mianwali,

Rawalpindi and Peshawar will benefit from this qualitative improvement in road engineering in Multan. Similarly, traffic from Lahore to Bahawalpur, Dera Ghazi Khan, Muzaffargarh, Mianwali and Karachi will save time because it will not require to pass through Multan city as inter-city traffic on once-congested city roads used to cause great inconvenience to citizens. The two bypasses will serve, for all practical purposes, as a ring road around Multan city. The Prime Minister himself enjoyed driving on the bypasses and stated that the facility would surely prove to be a great relief not only for the people of Multan but also for traffic through these arteries from north to south of the country and vice versa. MPAs Malik Ahmad Hussain Dehar, Syed Nazim Hussain Shah, Malik Mohammad Amir Dogar and Mian Amir Ghani Maral, former MPA Dr Javed Siddiqui, Malik Noor Hussain Dehar, Malik Asim Dehar (ex-Nazim), Rana Arshad, Pir Sajjad Shah, Malik Aslam Dogar (ex-Nazim), Mahr Azhar Chawan, Haji Akhtar Hussain Bhutta, Malik Razzaq Bappi, Pir Haidar Shah, Malik Akram Bhatti, Haji Mannan Ansari (ex nazim) and former Naib Nazim Humayun Khokhar were also present. - APP

Tax on Nato trucks under perusal ISLAMABAD: Pakistan is mulling to levy special tax on trucks, carrying oil and other items for foreign troops in the neighbouring Afghanistan, official sources said on Friday. Nearly 500 trucks and oil tankers daily cross into Afghanistan via Pakistan to deliver fuel and other items to around 150,000 US-led Nato forces in Afghanistan. At present no tax is levied on these trucks, according to officials and now two special check posts will soon be established at two border points in the Khhyber Pakhtunkhwa and Balochistan provinces. A parliamentary committee

had recommended to the government to impose special tax on Nato/ISAF containers passing through Pakistani roads, but the decision has not yet been taken. Pakistan has reportedly been suffering around $83 million loss every year due to Nato/ISAF freight truckloads that are badly damaging the National Highways network for eight years, reports say. Causing Pakistan's road network under tremendous strain, the overloading of Nato/ISAF and American Transit Freight to Afghanistan has been in practice since 2002. The parliament's Public Accounts Committee had asked the government to impose

taxes on Nato containers as Pakistan should get revenue from Nato containers taking supplies to Afghanistan. A member of the committee had also stated that 256 containers pass only through Torkham to Afghanistan daily. A similar number cross into Afghanistan through Chaman border in Balochistan. Other parliamentary committees like Senate Standing Committee on Communication over two months before had reportedly recommended that Nato containers were bound to pay toll tax at toll plazas as these overloaded trucks are damaging the national highways. - NNI

De-notification of PCO judges

SC grants two-day time to government ISLAMABAD: The Supreme Court on Friday granted two days to the federation to issue de-notification of a number of former judges who took oath under annulled Provisional Constitutional Order (PCO) of 2007 and consequently, had to cease their offices after July 31, 2009 decision of the apex court. A five-member bench comprising Chief Justice Iftikhar Muhammad Chaudhry, Justice Mian Shakirullah Jan, Justice Tassaduq Hussain Jillani, Justice Sarmad Jalal Osmani and Justice Amir Hani Muslim on the issue of PCO judges, expressed its displeasure in delay over issuance of required notification in pursuance of its May 18 order. Dr Babar Awan, representing Secretary Ministry of Law Masood Chishti, apprised the

Bench that on 19th July, a summary was sent under Rules of Business to the competent authority for approval. The Chief Justice told him that they did not require any summary as it was court's order which had to be implemented. He said "you need no summary, Supreme Court's orders should be implemented fully." He told him that one Sultan Shah, the acting Secretary Ministry of Law, had misled the government by referring to Article 209 (process for removal of judges through Supreme Judicial Council) and he had committed misconduct. Babar informed that the official was hospitalized. The CJ observed "supremacy is only to Constitution and the court has given its verdict under it which should be imple-

mented at all costs. We will not allow our authority to be eroded." The Bench told Dr Babar to go and get the summary approved to which the latter replied that the Prime Minister was out of the town and as soon as he returned, Court's respective order would be implemented. Dr Babar assured that all orders of the apex court would be implemented. The CJ told him that they had learnt from newspapers that the Cabinet had also criticized its certain decisions. Dr Babar replied that certain stories were baseless and few people had been doing politics on these stories. The CJ said it was command of the court to de-notify these See # 2 Page 7

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