thefinancialdaily-epaper-9-08-2011

International Karachi, Tuesday, August 9, 2011, Ramazan-ul-Mubarak 8, Vol# 5 Issue# 8 Price Rs 12 Pages 12

Ebad off to London to brief Altaf on Sindh situation Economic Indicators

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 05-Aug-2011) Monthly(Aug, 2011 up to 05-Aug-2011) Daily (5-Aug-2011) Total Portfolio Invest (16-Jul-2011)

-52.67 -6.18 -0.84 2768

RAWALPINDI: Chief of Army Staff, General Ashfaq Parvez Kayani presiding over the 141st Corps Commanders’ Conference held at General Headquarters.-APP

NCCPL (U.S $ in million)

FIPI (08-Aug-2011) Local Companies (08-Aug-2011) Banks / DFI (08-Aug-2011) Mutual Funds (08-Aug-2011) NBFC (08-Aug-2011) Local Investors (08-Aug-2011) Other Organization (08-Aug-2011)

-1.38 5.40 -8.59 2.63 0.01 0.80 1.14

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

Close 11,404.17 9,097.56 20,490.57 16,990.18 2,612.80 2,526.82 5,162.22 11,444.61

Change 29.08 202.32 455.57 315.69 9.58 99.61 84.77 60.93

GDR update $.Price PKR/Shares Symbols 112.54 MCB (1 GDR= 2 Shares) 2.60 130.90 OGDC (1 GDR= 10 Shares) 15.12 43.29 UBL (1 GDR= 4 Shares) 2.00 36.79 LUCK (1 GDR= 4 Shares) 1.70 38.97 HUBC (1 GDR= 25 Shares) 11.26

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) 08-Aug-2011 Kibor (3 Mths) 08-Aug-2011 Kibor (6 Mths) 08-Aug-2011 Kibor (9 Mths) 08-Aug-2011 08-Aug-2011 Kibor (1 Yr) 08-Aug-2011 P.I.B (3 Yrs) 08-Aug-2011 P.I.B (5 Yrs) 08-Aug-2011 P.I.B (10 Yrs) 08-Aug-2011 P.I.B (15 Yrs) 08-Aug-2011 P.I.B (20 Yrs) 08-Aug-2011 P.I.B (30 Yrs)

13.53% 13.78% 13.92% 13.50% 13.23% 13.26% 13.36% 13.66% 13.72% 13.46% 13.51% 13.55% 13.83% 13.96% 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

106.06 83.58 100.21 1,708.80 39.81 1,023 46,084 6,645

Open Mkt Currency Rates Symbols

Buy (Rs)

Sell (Rs)

Australian $ 88.75 90.00 Canadian $ 87.50 88.50 Danish Krone 16.35 16.65 Euro 123.00 124.50 Hong Kong $ 10.95 11.10 Japanese Yen 1.093 1.120 Saudi Riyal 22.95 23.15 Singapore $ 70.50 71.50 Swedish Korona 13.40 13.60 Swiss Franc 100.10 101.10 U.A.E Dirham 23.45 23.65 UK Pound 141.10 142.40 US $ 86.15 86.45 Inter-Bank Currency Rates Symbols

Buying

Selling

TT Clean

TT & OD

Australian $ 89.75 89.96 Canadian $ 87.97 88.17 Danish Krone 16.62 16.66 Euro 123.81 124.10 Hong Kong $ 11.07 11.09 Japanese Yen 1.107 1.109 Saudi Riyal 23.04 23.09 Singapore $ 71.14 71.31 Swedish Korona 13.37 13.40 Swiss Franc 113.71 113.97 U.A.E Dirham 23.52 23.58 UK Pound 141.81 142.14 US $ 86.57 86.76 Weather Forecast Cities

Islamabad Karachi Lahore Faisalabad Quetta Rawalpindi

Max-Temp Min-Temp

35°C 35°C 33°C 34°C 37°C 36°C

20°C 29°C 29°C 30°C 15°C 20°C

Subscribe now Tel: 92-21-35311893-6 Fax: 92-21-35388428 Email: editor@ thefinancialdaily.com

www.thefinancialdaily.com

See on Page 12

Financial crunch clips wings of BISP

See on Page 12

Grateful Bilour laments late bailout for PR

See on Page 12

By second global crisis

$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% $1,051 176.84mn

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)

US dismayed on terrorists safe havens

Army concerned on Karachi situation RAWALPINDI: Reviewing its operations in tribal areas, Pakistan army top brass on Monday expressed concerns that Karachi situation could have far reaching negative economic implications with potential to impact fight against terrorism.

"Not so promising situation in the financial capital of the country could further tighten the government's already limited capacity to finance the law enforcement against the extremists," a senior army official told Online.

Speaking on condition of anonymity, he explained that a situation in Karachi could not

only hamper the routine cash flows to the law enforcement operations but also dampen logistic supplies from/through the port city to the north up to Afghanistan.

That is why he said the army's top level conference has underlined the economic aspect of the law and order situation in Karachi.

Moreover, he observed that the calls for army operations in Karachi had also forced the top commanders to monitor the situation closely and express concerns.

According to an ISPR Press Release on the 141th Corps Commanders' Conference under Chief of Army Staff

To avert euro zone crisis

ECB steps in to support Italy, Spain LONDON/PARIS: The European Central Bank intervened dramatically in bond markets on Monday, backing up a verbal pledge to support Spain and Italy with action in an attempt to avert a financial meltdown in the euro zone.

Significant ECB bond-buying -- the only practical result of a weekend of frantic G7 and G20 crisis diplomacy -forced down Italian and Spanish borrowing costs in an initial reaction.

But stock markets fell across the globe as investors rattled by a historic downgrade of the United States' credit rating piled out of shares and into safe haven assets such as gold and German bonds. Shares on Wall Street shed three per cent in early trade.

Traders estimated the ECB bought about 2 billion euros in Italian and Spanish debt after it agreed on Sunday to broaden its controversial bond-buying program for the first time to include the bloc's third- and fourth-biggest economies.

"The intervention by the European Central Bank this morning seems to have been working," Irish Finance Minister Michael Noonan told RTE public radio.

"Last week the risk was that as bond rates in Italy went toward 7 per cent, they'd be driven into some kind of bailout program. They have fallen by almost one per cent this morning so they are well out of the bailout territory now."

Equity markets that had been in headlong retreat in Asia fell by some 3 per cent across Europe -- with the notable exceptions of Milan and Madrid -- after a pledge

by G20 finance chiefs and central bankers to take all necessary measures to support financial stability, growth and liquidity.

The central bank action aimed to change the dynamics on bond markets that had been pushing Italian and Spanish borrowing costs up toward unsustainable levels since mid-July.

"Speculators will now have to think twice about selling or shorting Italian and Spanish bonds, knowing the ECB will be acting against them," said Shane Oliver, head of investment strategy at AMP Capital Investors, one of Australia's biggest fund managers.

But experts warned the ECB would have to make large-scale purchases for a significant period to have a sustained impact, uncharted territory for the bank and a move which was opposed by influential members of its Governing Council last week.

"The ECB will have to buy 320 billion euros of Italian and Spanish government bonds simply to maintain the same proportion of purchases made relative to the outstanding debt of Greece, Ireland and Portugal made through the 75 billion euro Securities Market Program acquisitions to date," said Vincenzo Albano, Reuters Insider Fixed Income analyst. - Reuters

General Ashfaq Parvez Kayani, "the Forum expressed concern over the law and order situation in Karachi and its ramifications / implications on national economy and expected that the measures recently undertaken by the government would help redress the situation."

It stated earlier that the participants were briefed in detail regarding ongoing law enforcement operations in Kurram and Mohmand agencies within the perspective of evolving security dynamic.

The participants also discussed the security situation in the country in general and Karachi in particular, it added. - Online

Gilani addresses SArabia-based Pak investors JEDDAH: Prime Minister Syed Yousuf Raza Gilani on Monday said no nation can achieve economic prosperity, without political stability and the government was undertaking a number of measures to transfer the benefits of development to the nation.

He was addressing the Pakistan Investors Forum here at an Iftar dinner hosted in his honour. The forum that was launched around five years back has over 600 members and was undertaking several constructive activities in Saudi Arabia.

Prime Minister Gilani said Pakistan was facing numerous challenges at various fronts. He said these included the country's war against militancy and terrorism, the impact of the global recession, high international prices of petroleum products, and the massive damages of up to $10 billion caused by the floods last year.

However, he said the national economy was resilient and was braving these challenges by pursuing a vigorous reform agenda.

The Prime Minister said through strong determination and commitment, the results were evident and said that the amount of foreign remittances have risen to $12 billion, the country's exports to $26 billion, foreign exchange reserves to See # 1 Page 11

Ramazan Timing Ramazan 8, 1432 AH Tuesday, August 9 ---------------------------Iftar today

7:14pm

Sehar tomorrow

4:39am

For Fiqah-e-Jafaria Iftar today Sehar tomorrow

7:26pm 4:35am

Pakistan, too would be hit harder: S&P SYDNEY: A new global financial crisis would hit Asia harder than the last one, especially nations heavily exposed to offshore markets or still repairing budgets from the 2008-2009 crisis, credit ratings agency Standard and Poor's said on Monday.

The agency listed those countries particularly vulnerable to disruptions in offshore capital markets as Pakistan, Sri Lanka, Fiji, Australia, New Zealand, South Korea and Indonesia.

The agency, which incurred Washington's wrath at the weekend by cutting its AAA rating by a notch to AA+, said it was not predicting a rerun of the credit crisis that crippled markets and tipped the world economy into recession three years ago.

But it warned of more sovereign downgrades in Asia next time around, if its assumptions turned out to be wrong.

"If a renewed slowdown comes, it would likely create a deeper and more prolonged impact than the last one," S&P said in a statement.

"The implications for sovereign creditworthiness in AsiaPacific would likely be more

negative than previously experienced, and a larger number of negative rating actions would follow. We wait to see."

S&P said it assumed Europe's debt crisis and Washington's debt problems were unlikely to lead to "abrupt dislocations" in the financial systems and economies of major developed nations.

On that basis, it added, its historic downgrade of the US credit rating would have no immediate knock-on impact on sovereign borrowers in the Asia-Pacific.

It cited the Asia Pacific region's sound domestic demand, relatively healthy corporate and household sectors, plentiful external liquidity and high savings rates -- though it listed New Zealand, Japan and Vietnam as exceptions to this.

The S&P statement took on a much darker tone when considering the possibility that its assumptions were too rosy, noting that Asia still relied heavily on exports to the West.

"Given the interconnectivity of the global markets, an unexpectedly sharp disruption in developed-world financial markets could change the picture,"

it said, noting that the US and European economies could again contract or stagnate.

"In this scenario, the experience of the global financial crisis of 2008-2009 shows that export-dependent economies with large exposures to the US and/or Europe would feel the most pronounced economic impacts," S&P said.

"It's not likely things would be very different this time."

It also said several nations, again including New Zealand, were also still repairing their government finances and could be more constrained in responding to a fresh global crisis.

"The adverse impact on Asia Pacific in that scenario would likely require governments to use their balance sheets to support their economies and financial sectors once again," S&P said.

"And in our opinion, most governments would promptly oblige. But some of them continue to bear the scars of the recent downturn -- the fiscal capacities of Japan, India, Malaysia, Taiwan and New Zealand have shrunk relative to pre-2008 levels." - Reuters

SC scrubs suspension of NICL probe official Orders inquiry on step against Zafar Qureshi ISLAMABAD: The Supreme Court has cancelled the suspension notification of Federal Investigation Agency (FIA) additional director general Zafar Ahmed Qureshi and also handed him the task to investigate the multi-billion National Insurance Company Limited (NICL) scam.

Earlier, a three-member Supreme Court bench comprising of Chief Justice Iftikhar Muhammad Chaudhry, Justice Tariq Parvez and Justice Amir Hani Muslim reserved judgment on the matter on July 25.

The court also ordered the Attorney General to submit a written statement regarding the position of the Prime Minister and interior minister on the suspension of Zafar Qureshi.

AGP Anwarul Haq requested the court on July 25 to grant him some more time to ascertain the stand of the Prime Minister, who suspended Zafar Qureshi and declined to reinstate him despite court orders. The court however rejected his request noting that sufficient time had already been given to this effect.

On Monday Senior Judge Justice Shakirullah Jan read out the verdict as the CJ Chaudhry was in Lahore for hearing another significant case.

The court declared that Attorney General failed to submit Prime Minister's reaction on the issue.

The verdict stated that the

order dated 4.7.2011 and or any other order, suspending Zafar Ahmed Qureshi, additional DG FIA from service have been passed to render the judgment/order dated 1.7.2011 ineffective and nonoperative.

Thus, order dated 4.7.2011 suspending Zafar Ahmed Qureshi or any other order, is quashed/set aside. He shall be deemed to have been on duty as additional DG FIA pursuant to the order of this Court dated 1.7.2011.

The court also ordered establishing of a commission to be headed Justice Ghulam Rabbani to ascertain the responsible elements behind the suspension of Zafar Qureshi and anti-judiciary campaign in the electronic media Deputy Registrar Sajid Mehmood would be the secretary of the commission while interior secretary and secretary information would assist the commission secretary. The commission would present its report before the Supreme Court after completing its investigation In the 37 page detailed judgement, the SC nullified the suspension of head of investigation team probing the NICL scam Zafar Qureshi and all steps taken by the administration.

The court further ordered that Zafar Qureshi resumes his investigation from where it was left off after his suspension and complete the probe at

its earliest.

The court also ordered the DG FIA, additional DG FIA, Zafar Ahmed Qureshi and other government authorities shall take steps to ensure that public money sent abroad noted hereinabove, shall be brought back.

DG FIA was given a stern warning by the court against any interference in the investigation being conducted by Zafar Ahmed Qureshi, additional DG, under the direction of this Court. FIA was also ordered to give weekly progress report to Justice Amir Hani Muslim in his chamber.

The court also ordered no action shall be taken against Zafar Ahmed Qureshi without prior approval of this Court.

The investigation team, which had already been assisting him, would join him as team mates, unless he wants otherwise.

In its previous hearing, the court had also asked for replies of Prime Minister, interior minister, interior secretary and establishment division secretary. But no response was received from them.

Earlier on July 1, the court ordered the federal government to take back notification regarding the suspension of Zafar Qureshi, who, court ordered, to resume investigations again.

However, he was suspended again within 72 hours of his reinstatement for talking to media without departmental authorisation. - Online

2 2 EOBI officials urged to promote schemes LAHORE: Zafar Iqbal Gondal, Chairman EOBI has said that EOBIs pension fund is a trust fund of the aged, industrialist workers and their families and we are just trustees, so we should collect and distribute it with the sense of dedication, honesty and care.

He was speaking at the inaugural session of 3Regional and Departmental Head Conference here at LUMS auditorium.

He said that present government has taken revolutionary steps for the employees and EOBI pensioners. The minimum pension has been raised from Rs 1500 to Rs 3000 per month. He directed the Regional Heads to personally visit the fields, inform the industrialists about the benefits of the scheme and convince them to get their units registered.

All the regional heads of EOBI will give their performance report.

The Chairman will distribute the awards amongst the best region and best beat officer who has achieved the largest allocated to them during the period 201011 on Wednesday (tomorrow). -PR

Tuesday, August 9, 2011

SRB asks service providers to pay ST by August 15 KARACHI: Sindh Revenue Board has asked all the service providers of the taxable services under Sindh Sales Tax on Services Act 2011, to get enrolled, file return forms in time and pay monthly sales tax on services rendered and provided during the month of July by Aug 15.

A spokesman of the Sindh Revenue Board on Monday said the major taxable services included advertising companies, banking companies, insurance and reinsurance companies, cooperative financing societies, modarabas, musharikas, leasing companies, foreign exchange dealers and non banking financial institutions.

The people associated with construction sector, franchise services, ports and terminal operators, custom agents, shipping agents, stevedores, shipping management services, freight forwarding agents, contractual execution of work or furnishing supplies, hotels/ restaurants/ caterers, stock-brokers, money exchangers, telecommunication etc are also included among sections covered under Sindh Sales Tax on Services Act 2011, said the spokesman.

In pursuance of the 18th amendment to

Constitution and 7th NFC award, the Sindh assembly in June 2011 had unanimously passed the Sindh Sales Tax on Services Bill 2011 which has been duly promulgated and has been made effective wef 1st July 2011.

Under the law the Sindh Revenue Board, the Government of Sindh has taken the control for management, administration and collection of the Sales Tax on Services.

Since the Sindh Sales Tax Ordinance 2000 stands repealed, all such service providers of taxable services being rendered and provided in Sindh are legally required to pay directly in the Head of Account Number B02382, Government of Sindh in authorized branches of National Bank of Pakistan.

The registration, enrollment and preparation of payment challan is to be made through web based online automated system which can be logged on www.e.srb.gos.pk.

The spokesman said that for facilitation of tax payers a call center facility has been established which can be reached by calling 021 111 778 000 to seek any assistance or support in addition to official web site of Sindh Revenue Board www.srb.gos.pk. -APP

KARACHI: Samsung Electronics was recently presented with the "Best Home Audio-Visual Brand Award at Kings Place in London-the latest in a string of accolades for Samsung's Smart TVs, Blu-ray players and home theatre systems.

In presenting the award, Europe's largest consumer advocacy group recognized Samsung for its consistently high marks in customer satisfaction surveys and product quality and reliability reviews.

Samsung Pakistan's Managing Director, Hee Chang Yee said, "We are extremely honored to receive 'Best Audio-Visual Brand' and 'Best Portable Media Brand' together, since these awards are truly given by consumers.

We will continue to keep our ears open to what consumers say and make our utmost efforts to offer the best products and services to them."

In announcing the awards Magazine has applauded Samsung's consistent product quality improvements.

Samsung's customers have consistently voted with their feet as well, making Samsung the global TV market leader for six consecutive years.

European consumers' have thus expressed their overwhelming appreciation for Samsung's elegantly designed Smart TV, Blu-ray and home theatre products.-PR

KARACHI: Syed Noman Hasan, Chief Operating Officer of Lucky Cement is receiving ‘Brand of the Year’ Award from Prime Minister Yousuf Raza Gilani.-Staff Photo

KARACHI: The honorary Consul General of Morocco, Ishtiaq Baig, hosted a reception on the occasion of National Day at local hotel. Picture shows Ambassador of Morocco, Rida El Fassi, Federal Minister Makhdum Amin Fahim, Justice Agha Rafiq, Sindh Ministers Agha Siraj Durrani, Jam Madad Ali, and Dr Mirza Ikhtiar Baig, with other guests. - Staff Photo

French Railways, Etihad Air ink commercial agreement KARACHI: Etihad Airways contines to build its presence in France with the signing of a new commercial agreement with French Railways (SNCF).

The deal - Etihad's 32nd - will allow Etihad passengers to book flights beyond Paris Charles de Gaulle airport (CDG), by connecting onward to SNCF's 2,000 kilometre highspeed TGV rail routes, and vice-versa.

The seamless air-rail connections comprise 20 cities in France including: Bordeaux, Le Mans, Lille, Lyon, Marseille, Nantes, Rennes and Strasbourg, and is available daily for passengers travelling from Karachi, Lahore & Islamabad on Etihad Airways via their home KARACHI:

Fitrana would be Rs80 this year: Mufti Muneeb

Samsung wins European Award

base Abu Dhabi.

Peter Baumgartner, Etihad Airways Chief Commercial Officer said: "We've just gone double daily to Paris, and combined with this exciting new code share with SNCF, it illustrates Etihad's growing commitment to passengers travelling to and from France.

Allowing them to book tickets closer to their departure and arrival points is a fantastic proposition to our customers.

The high-speed rail infrastructure already in place, and the proven credentials of SNCF and Etihad will allow passengers a seamless travel experience through Paris CDG airport on to the TGV network and vice versa." -PR

Etihad Airways contines to build

KARACHI: Mahmood Parekh, Treasurer, All Pakistan Memon FoundationEducational Board (APMF-EB) presenting crest to Dr Ishrat Husain, Dean and Director, Institute of Business Administration at 8th & last session of Youth Leadership Programme-2011 at National Museum of Pakistan. Ashraf Bawani, Chairman, YLDP Committee, Abdul Majeed Abdani, Member, APMF-EB, Ibrahim Mamdani, Shoaib Ghaziani, Altaf Bawany and Aslam Lakhani also seen in the picture. -Staff Photo

Youth Leadership Programme concludes

Pak future lies in youth hands: Ishrat Staff Reporter KARACHI: Future of Pakistan lies in the youngsters, which direly need proper education and skill development training to meet the global challenges, says Dr Ishrat Husain, Dean and Director, Institute of Business Administration.

He was speaking as guest speaker at 8th and last session of Youth Leadership Programme2011 (YLDP) at National Museum of Pakistan, being organised under aegis of All Pakistan Memon Foundation-Educational Board (APMF-EB).

Dr Ishrat Hussain laid emphasis on the need of education, saying no nation could run on the track of development with fast pace unless its education system meet the mod-

ern requirements.

It is an excellent opportunity to interact with youth with diverse academic and social background, Dr Ishrat said, adding participants should contribute in sessions with fervor and zeal.

The trainer of the day was a highly renowned trainer, Rahila Narejo.

Rahila is a much sought out key-note speaker and workshop facilitator who is known for giving a personal and humorous touch to all her presentations.

She conducted the session so effectively that all the audience was totally engrossed. Her session was highly interactive and meaningful and she made the participants think to bring about a positive change in themselves.

There was one more speaker, Asad Ali, ECO of Hussaini Blood Bank who

talked about "Thalassemia," its types, cause, treatment etc. It was highly informative.

Earlier in his welcome address Ashraf Bawani, Chairman, YLDP Committee highlighted APMF-EB is working hard to pursue its vision of being the catalyst for quality education to students in an environment that promotes self-discipline, motivation and excellence in learning.

He was of the view that the degradation of our educational system has been one of the major factors hampering our national development.

Mahmood Parekh, Treasurer, APMF-EB, Abdul Majeed Abdani, Member, APMF-EB, Ibrahim Mamdani, Shoaib Ghaziani, Altaf Bawani and Aslam Lakhani were there to encourage the participants.

KARACHI: Chairman Roiyat-e-Hilal Committee Mufti Muneeb-ur-Rehman has announced that this year the rate of Fitrana would be Rs 80 per capita according to the price of fine quality flour.

Whereas the rate of Fitrana would be increased to Rs200 per person, if it would be calculated on the price of barley. If this would be work out on the cost of fine dates, the rate of Fitrana would be Rs 1280 per person. Whereas the Fitrana would be calculated on the price of black current would be Rs 1600.

Mufti Muneeb also announced that according to Islamic jurisprudence, the penalty for not keeping fast for the whole month during Ramazan would be Rs 2400, 6000, 38400 and 48000 respectively. Whereas the fine for taking false swear would be Rs 800, 2000, 12800 and 16000 correspondingly.

"The real spirit of Fitrana and penalty is to offer two time meal to poor people, which should be not less than Rs 100 per day in this era of price-hike", he added by saying that it is the religious obligation of all Muslims to give Fitrana and penalties before the Eid Prayers so that the deprived class of the society may also join other people in celebrating happiness of Eid. -Online

3

Tuesday, August 9, 2011

l

Euro falls on debt woes; dollar down vs franc, yen Markets on alert for intervention by Japan, Switzerland

NEW YORK: The euro fell on Monday on fears the European Central Bank's buying of Spanish and Italian debt would not stem the spreading debt crisis, while the dollar dropped against the Swiss franc and yen after the US debt rating cut.

Traders said the ECB bought Spanish and Italian debt early in the European session after it said on Sunday it would "actively implement" its bond-buying program. That helped lift the euro to a high above $1.44 earlier.

But the ECB purchases did little to alleviate concerns that the euro-zone's debt crisis is spreading to core countries. Nervousness in global financial markets after Standard & Poor's cut the United States's AAA sovereign rating on Friday also prompted investors to shed risk and pressured the euro.

"The complete unwind of the euro/dollar rally before the open of North American trade speaks volumes about the currency market's fear of the euro-zone credit crisis," said Boris

Schlossberg, director of currency research at GFT in New York.

"Today's price action is shaping up as a battle of confidence between central banks and the bond vigilantes which continue to press the credit markets in Spain, Italy and perhaps France next," he added.

Five-year credit default swaps on French government debt rose 15.5 basis points to 160 basis points -- a record high -- according to data monitor Markit. This means it costs 160,000 euros to protect 10 million euros of exposure to French bonds.

The euro last traded at $1.4174, near a session low of $1.4150 on trading platform EBS and well off a session peak of $1.44320. Traders see the next downside target around Friday's low at $1.4055. Support is seen around

$1.4030, the euro/dollar's 200-week moving average.

The euro fell 1.2 per cent against the safe-haven Swiss franc, near a record low. It also lost 1.7 per cent versus the yen.

Trading in the euro remained volatile,

with one-month euro/dollar implied vol rising to 14.25, while one-month risk reversals, which track the skew between options to buy or sell the currency, remained strongly in favor of selling euros.

The dollar fell 0.8 per cent to 77.79 yen, having slipped to around 77.45 on EBS. It was down 0.5 per cent at 0.7635 Swiss francs, in sight of a record low

Won sees worst day in 9-mths; Asia FX seen weak

l

Rupiah suffers from stock outflows; BI's dollar sales seen

SINGAPORE: The South Korean won suffered its worst day in nearly nine months on Monday as investors kept chopping exposure to emerging Asian currencies and stocks amid mounting jitters about the US and Europe.

Finance ministers of the Group of Seven pledged coordinated actions to stabilise markets in the wake of Standard & Poor's downgrade of US debt, but the words did not really help emerging Asian currencies escape losses as investors dampened regional stocks.

Some Asian policymakers such as South Korea's foreign exchange authorities and the Indonesian central bank were spotted acted to limit falls in their currencies, a move seen as soothing sentiment and fighting inflation, dealers and analysts said.

The interventions to boost Asian currencies provided investors a chance to sell regional units at strong levels.

The dealers and analysts expect Asian units to remain weak in the near term.

"This bleeding will take its toll in shaving growth prospects for Emerging Asia.

With Asian currencies under

pressure to weaken, the next key driver to search for is whether dollar shortages occur in Asia," said Suresh Kumar Ramanathan, regional rates and foreign exchange strategist for CIMB Investment Bank in Kuala Lumpur.

"This will exacerbate the AXJ FX weakness. Bottom line, the squeeze in money markets has yet to come but for now it's at the door step of equities." Dollar interbank funding costs pushed higher on Monday as the S&P cut in its US credit rating sparked a deep sell-off in Asian stocks, sending banks and market players rushing to secure cash on worries that a broader financial crisis could develop.

The won ended local trade down 1.4 per cent against the dollar, the largest daily percentage fall since Nov. 26 last year, as local stocks tumbled and overseas funds sold the currency.

Foreign investors scooped a net 1.46 trillion won ($1.37 billion) in the country's treasury bond futures.

On Friday, they bought a net 1.93 trillion won in bond futures, more than their net stock sales of 1.75 trillion won for the whole week, according

to the Korean stock exchange.

Indonesia's central bank was spotted buying the rupiah to curb a sharp fall in the local currency after its intervention last week, dealers said.

Bank Indonesia has been seen using a firm rupiah to help fight inflation.

The rupiah slipped to 8,540 to the dollar. Without intervention, the Indonesian currency is seen heading to 8,561 per dollar, the 61.8 per cent Fibonacci retracement level of its appreciation since late June, given stock outflows.

Foreign investors sold a combined net $275 million in Jakarta stocks during the previous three consecutive sessions, according to Reuters data.

On Friday, the Philippine central bank's deputy governor said it is participating in the foreign exchange market to dampen volatility. Some dealers said the central bank's dollar sales on Friday was seen at 42.70 per dollar.

A European bank dealer in Manila said: "I haven't seen BSP intervention yet although I suspect they would cap (the dollar/peso) at 42.70 levels which was BSP's level last Friday." -Reuters

around 0.7480 plumbed earlier in the day.

The world's industrial powers pledged on Sunday to take whatever actions were needed to steady financial markets.

"The perception in markets is increasingly that central banks do not have the tools to solve the problems the advanced economies face and that worse the response to date might have caused more harm than good," said Camilla Sutton, senior currency strategist at Scotia Capital in Toronto.

Goldman held its euro/dollar forecast at $1.45 for the next three months, while it expects the pair to hit $1.50 in six months. It lowered its three-month dollar/yen forecast to 77 yen from 82, and sees the dollar falling to 74 yen in a year.

Demand for the franc and the yen kept alive the threat of intervention by Swiss and Japanese authorities to weaken their currencies, whose strength eats into their exports. -Reuters

Yuan at record high after S&P downgrade

SHANGHAI: The yuan jumped to a record high versus the dollar on Monday after the People's Bank of China set a historical high mid-point following a drop in the dollar index after Standard & Poor's downgraded the US credit rating.

The United States lost its top-notch AAA credit rating from Standard & Poor's on Friday in an unprecedented reversal of fortune for the world's largest economy.

Dealers expected the yuan still had potential to hit new highs in the near term as the European Central Bank announced steps to ease tensions in the euro-zone debt market, which could support the euro and yuan.

"Now the global market will lead the yuan's trade," said a dealer at a Chinese commercial bank in Shanghai. "It's clear that today's jump in the yuan is in line with the downgrade of the US" Spot yuan hit a record and intraday high of 6.4250 per dollar on Monday and ended at 6.4360, stronger than Friday's close of 6.4404. It has now appreciated 6.24 per cent since it was depegged from the dollar in June 2010 and 2.56 per cent sions in euro zone. so far this year.

The Aussie, however, outperformed its neighBefore trade began the

Aussie & NZD dumped as stocks, commodities slide SYDNEY/WELLINGTON: The Australian and New Zealand dollars slumped to multi-week lows on Monday as investors rushed to safehaven assets like the Swiss franc and gold, ignoring efforts by global policymakers to stabilise markets and restore confidence.

The Aussie slumped to a four-month trough of $1.0314, from $1.0458 in New York on Friday, having cracked major support at $1.0375. The currency, down 1.2 per cent on the day, gave in to heavy losses in Asian stocks and commodities.

Indeed, share markets across Asia sank between 2 and 5 per cent, while metal prices and oil also fell sharply.

Fears of recession in the world's top economy, a downgrade of the US credit rating and Europe's woes combined to pummel financial markets in one of the worst routs since the collapse of Lehman Brothers in 2008. Gold roared to record highs.

Next key floor for the Aussie was seen at $1.0288 with technicals pointing to a move towards $1.0200.

The Australian dollar was also at multi-month lows against a range of currencies. It hit a 4fourth month trough of 80.35 yen and a two-year low of 78.03 francs .

The euro leapt 1.7 per cent higher to a threemonth peak of A$1.3882 after the European Central Bank said it would "actively implement" its bond-buying programmes to ease debt ten-

bour at NZ$1.2455, edging up from a one-year low around NZ$1.2331 plumbed Friday.

Across the Tasman sea, the kiwi fell to a near one-month low of $0.8262, from $0.8430 in New York on Friday, taking losses for the past week to around five cents as markets slashed rate hike bets. It was last at $0.8290, with support seen at $0.8205 and resistance around $0.8435.

"A rate hike is off the table until global financial risks recede," said Khoon Goh, ANZNational head of market economics and strategy.

"We expect the data flow to remain robust and out of sync, but for such differentiation to play second fiddle to global fears."

The New Zealand dollar had risen to a 30-year peak of $0.8842 last week on expectations the Reserve Bank of New Zealand would need to hike rates to cool an expanding economy.

However, the latest bout of market turmoil has seen expectations scaled back at its next meeting on Sept. 15, with pricing now implying only a 28 per cent chance of a 25 basis point hike. Last week, markets had priced in a 60 per cent chance of a 50 basis point hike.

Pricing over the next 12 months has also slumped to only 43 bps from 105 bps last week.

The kiwi also lost more ground to the Japanese yen, with the kiwi sliding to a near one-month low of 64.65 yen. -Reuters

Dollar hits new low against Swiss franc GENEVA: The US dollar has hit a record low against the Swiss franc of 0.7485 centimes to the dollar - a drop of almost 30 per cent from a year ago.

The slump Monday came on the first day of European trading following the US government debt downgrade last week.

The Swiss government was holding an emergency meeting Monday to discuss the current turmoil on the financial markets and how to deal

with the increasingly valuable franc that is hurting Swiss exporters.

Shares in Swiss watchmaker Swatch Group were the worst performers among the 20-strong SMI bluechip index on the Zurich exchange.

Swatch shares were down 2.5 per cent at 353.50 francs ($465.74), while shares of Swiss banks pushed the SMI as a whole into positive territory in morning trading. -Agencies

PBOC fixed the yuan's midpoint at an all-time high of 6.4305 against the dollar, stronger than Friday's 6.4451.

China's central bank raised its mid-point fixing for the yuan by 0.2 per cent per dollar, the biggest rise since mid-November.

The dollar/yuan exchange rate may rise or fall 0.5 per cent from the mid-point each day.

But traders also said the pace of yuan gains was likely to slow as global commodity prices, the benchmark Reuters Jefferies CRB index, slumped more than 11 per cent since early May, raising fewer worries over imported inflation. The authorities used the yuan's exchange rate to help fight inflation.

The yuan has risen around 0.6 per cent since the start of July, but its gains in the third quarter are likely to remain confined to around 1 per cent, analysts said.

Offshore, benchmark oneyear dollar/yuan non-deliverable forwards (NDFs) were bid at 6.3760 late on Monday, weaker than 6.3830 at the previous day's close. Their implied yuan appreciation in a year's time rose to 0.85 per cent from 0.74 per cent. -Reuters

Indian rupee plunges on weak shares, euro MUMBAI: The Indian rupee slid to a near six-week low on Monday, dragged by weak local shares and fears of foreign fund outflows on renewed risk aversion stoked by global economic uncertainty.

The partially convertible rupee ended at 44.9650/9750 per dollar, 0.5 percent weaker than its Friday's close of 44.735/740, but off the day's low of 45.0650 -- a level not seen since June 28.

"The stock market contributed to the fall, and the euro-zone is still in troubled waters," said Hari Chandramgathan, a senior foreign exchange dealer with Federal Bank, adding the rupee could touch 45.2545.35 in the near-term.

Indian shares shed 1.8 percent on Monday, taking their losses to more than 7 percent in five straight sessions, after Standard & Poor's downgrade of the US debt rating triggered a flight from risky assets in global stock markets.

A weaker euro also hurt the

Indian unit, traders said.

Traders said dollar demand from oil importers also weighed on the local unit.

State-run banks have been buying dollars since last week for domestic oil refiners to clear import dues estimated at around $5 billion to Iran.

The one-month onshore forward premium was at 21.25 points from 20.25 points, while the threemonth was at 58.25 points from 59.25. The one-year onshore forward premium fell to 178 points from 191.75 points last Friday.

One-month offshore nondeliverable forward contracts were quoted at 45.25, weaker than the onshore spot rate.

In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange and the MCX-SX were both at 45.1150, while those on the United Stock Exchange was at 45.1125. The total volume was at $15.91 billion. Reuters

Top Economic Events Time 1:00am 1:45am 2:00am 2:00am 2:45am 4:30am 4:30am 4:30am 8:15am 8:30am 8:30am 10:00am 2:15pm 2:15pm 10th-13th 7:50pm

Source JPY CHF EUR JPY EUR GBP GBP GBP CAD USD USD GBP USD USD NZD JPY

Events Household Confidence SECO Consumer Climate German Trade Balance Prelim Machine Tool Orders y/y French Gov Budget Balance Manufacturing Production m/m Trade Balance Industrial Production m/m Housing Starts Prelim Nonfarm Productivity q/q Prelim Unit Labor Costs q/q NIESR GDP Estimate FOMC Statement Federal Funds Rate REINZ HPI m/m Tertiary Industry Activity m/m

Source

Events

JPY CHF ALL EUR GBP GBP JPY JPY AUD AUD CNY CNY CNY CNY CNY

Economy Watchers Sentiment Unemployment Rate G20 Meetings Sentix Investor Confidence BRC Retail Sales Monitor y/y RICS House Price Balance Monetary Policy Meeting Minutes M2 Money Stock y/y Home Loans m/m NAB Business Confidence CPI y/y Fixed Asset Investment ytd/y Industrial Production y/y PPI y/y Retail Sales y/y

Forecast 37.6 -7 12.9B

0.3% -8.2B 0.4% 194K -0.6% 2.1%

<0.25% 1.1%

Previous 35.3 -1 12.8B 53.5% -68.4B 1.8% -8.5B 0.9% 201K 1.8% 0.7% 0.1% <0.25% 1.3% 0.9%

Previous Day Actual

Forecast

52.6 3.0%

50.3 3.0%

49.6 3.0%

-13.5

3.6

5.3 -0.6% -27%

-25% 2.9% 0.7% 6.4% 25.5% 14.7% 7.4% 17.7%

Previous

2.9% 4.4% 0 6.4% 25.6% 15.1% 7.1% 17.7%

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

Bid 1.4180 0.7636 1.6345 0.9871 1.0355 110.32 0.8673 1.0832 127.22 101.83 1694.70

As per 22.00 PST Ask High 1.4182 1.4407 0.7640 0.7653 1.6348 1.6471 0.9875 0.9884 1.0360 1.0464 110.36 112.51 0.8677 0.8751 1.0837 1.0992 127.30 128.84 101.88 103.36 1695.22 1715.28

Low 1.4155 0.7529 1.6329 0.9781 1.0305 110.19 0.8668 1.0790 127.15 101.80 1661.95

Major Central Banks Overview Central Bank

Next Meeting

Last Change

9/7/2011 9/8/2011 9/7/2011 9/8/2011 8/9/2011 9/15/2011 9/6/2011

9/8/2010 3/5/2009 12/19/2008 7/7/2011 12/16/2008 8/3/2011 11/2/2010

Bank of Canada Bank of England Bank of Japan European Central Bank Federal Reserve Swiss National Bank The Reserve Bank of Australia

Current Interest Rate 1% 0.50% 0.10% 1.50% 0.25% 0% 4.75%

Division of National Bank of Pakistan (NBP) KARACHI, August 8,2011 Treasury Management Division of National Bank of Pakistan (NBP) Monday issued the following Exchange rates: Countries Selling Buying Buying TT & OD TT Clean OD/T.CHQ U.S.A U.K EURO CANADA SWITZERLAND AUSTRALIA SWEDEN JAPAN NORWAY SINGAPORE DENMARK SAUDI ARABIA HONGKONG KUWAIT MALAYSIA NEWZEALAND QATAR U.A.E KR. WON THAILAND

86.60 142.14 124.10 88.17 113.97 89.96 13.40 1.11 15.81 71.31 16.66 23.09 11.09 317.57 28.77 72.14 23.78 23.58 0.08 2.91

86.40 141.81 123.81 87.97 113.71 89.75 13.37 1.11 15.77 71.14 16.62 23.04 11.07 316.83 28.70 71.97 23.73 23.52 0.08 2.90

86.18 141.43 123.44 87.74 113.41 89.52 13.34 1.10 15.73 70.96 16.58 22.98 11.04 316.00 28.62 71.78 23.67 23.46 0.08 2.90

Stg surges vs weak euro, lags dollar LONDON: Sterling traded close to two-month highs against a broadly weaker euro on Monday as investors worried European Central Bank buying of Spanish and Italian bonds would have only a limited positive impact on the eurozone's debt crisis.

A lack of UK data or newsflow meant the pound's direction was mainly driven by risk sentiment, further dented when Standard and Poor's cut its US sovereign rating to AA-plus from AAA late on Friday, hitting stock-markets and riskier assets.

The euro fell around 0.6 per cent to 86.62 pence, bringing it

early high of $1.6478 against the dollar in thin trade to sit with losses of around 0.5 per cent on the day at $1.6308.

Traders said decent offers in the $1.6480-1.6500 region had helped to cap its rally.

Resistance also resides at $1.6519 - the 76.4 per cent retracement of sterling's fall from a high of $1.6747 on April 28 to a low of $1.5781 on July 12.

Stop-loss orders were said to have been targeted at $1.6310 in late trade, while analysts said the impact of the US ratings downgrade was lending broad support to the dollar.

Sterling could be at risk if the

close to a two-month low of 86.55 hit last week.

"We expect the euro to fall to 85.90 pence because we are not sure how long the ECB will support it by buying Spanish and Italian bonds," said Adrian Schmidt, currency strategist at Lloyds Banking Group.

Traders said support from ECB bond buying was being overshadowed by worries over France's sovereign rating as the cost of insuring its debt against default rose sharply in the wake of the US sovereign downgrade, with a further sell-off in the single currency looking likely.

"We are looking to reinstate a short position for a move back to 86.10. The lack of bullish divergence suggests that the downtrend of the past month is not complete yet," said Phil Roberts, technical analyst at Barclays Capital.

Sterling pulled back from an

Bank of England cuts its growth forecast in its quarterly inflation report due on Wednesday.

UK economic data has consistently surprised on signal that it will not raise interest rates within the next yearthe downside and although inflation has been stubbornly above the BOE's target range, the central bank is likely to.

In fact, some in the market are speculating that the BOE may have to resort to more quantitative easing if growth remains sluggish domestically and external risk factors like a stuttering global recovery intensify.

Financial markets, having factored in at least three quarter percentage point Bank of England rate increases in 2011 at the start of the year, have now priced out chances of a rate hike all the way through 2012. -Reuters

4

Tuesday, August 9, 2011

The Financial Daily International

Questioning S&P Decision

Publisher & Editor-in-Chief: Amir A. Ashary Editor: Shakil H. Jafri Executive Editor: Manzar Naqvi Honorary Advisory Board Haseeb Khan, FCA

S. Muneer Hussain Rizvi

Asim Abbas Ashary, CPA

Khurram Shehzad, CFA

Akhtar M. Zaidi, FCA

Prof. Zakaria Sajid (KU)

Dr. A. Hadi Shahid, FCA

Zahid Bukhari SVP HBL (retd)

Muhammad Arif

Ismat Sabir Head office

111-C, Jami Commercial Street 11, Phase VII, DHA Karachi Telephone: 92-21-35311893-6 Fax: 92-21-35388428 URL: www.thefinancialdaily.com Email Address: editor@thefinancialdaily.com

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

Devolution for improvement or deterioration For facilitating the provinces to make their own decisions, some of the ministries are being closed at the federal level and new ministries are being created in the provinces. While the process needs appreciation closure of two federal ministries, food & agriculture and health has to be resisted. Not because provinces are incapable of managing the affairs but there is a need to handle the issue at macro level and maintaining complete coherence.

Ministry of Food, Agriculture and Livestock is responsible for planning cultivation of wheat, rice, sugarcane and edible oilseeds throughout the country. It is also responsible for fixing support price of these crops. It is also responsible for coordination with research institutes for the production of certified seeds. It also advises the government on import of different commodities in case of shortage and export when in surplus.

The soil condition of the country is such that some of the crops produced in huge quantity are scare in other provinces or the climatic conditions are not conducive for cultivation of some crops in certain areas. All these issues have to be discussed to ensure adequate supply of commodities, particularly wheat throughout the country.

Bad policies followed in the past have led to installation of over 9 million tons sugar production capacity but actual output hover around 3.5 million tonnes. Many of the sugar mills have been established in cotton growing areas. This on one hand has led to reduction in cotton production and on the other hand extremely poor yield of sugarcane being cultivated in cotton growing belt.

Transfer of health ministries is likely to cause a chaos. To begin with, pharmaceutical factories are controlled under certain laws. Registration and pricing of drugs poses even bigger problem, especially the imported medicines. Though, it may be said that the conditions at federal levels also suffered due to some inadequacies but provinces just don't have the required expertise and infrastructure to oversee pharmaceutical manufacturing and import business. Therefore, it is suggested that skeleton staff should be retained at the federal level and slowly and gradually responsibilities be transferred to the provinces.

Some of the experts say granting provincial autonomy should improve working rather than creating chaos. Therefore, some of the ministries have to be retained at the federal levels for better coordination and control. They also say that granting autonomy to provinces does not mean stripping off the federation from decision making on some of the strategically important issues. Therefore, devolution of power may be good but not at the security risk of the country.

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.

Zahid Hussain Bukhari

S

tandard and poor's decision to down grade US credit rating to AA plus from AAA, is hasty, harsh, careless, rash, immature, unwanted and without going through minutely the entire scenario of facts and figures. You cannot treat the world's top most and largest economy like that, which may tumble the world's economy, financial and monetary order. US treasury claims $ 2 trillion error in standard and poor's calculation.

This is for the first time during last more than 90 years that US credit rating down graded. Moody's rated US credit rating and economy as the best in 1917 for the first time and it never came down till now, the decision of standard and poor on last Friday (0508-2011). The other two world renowned agencies are Moody's and Fitch whom are still holding US credit rating as AAA. There has been severe hue and cry about the economic state of being of US in US and around the world, during last more than a month. The US Government was locked in a political battle over long term economic policy and debt ceiling. There is nothing like that a second recession may hit the US economy. Goolsbee dismissed worries of another recession. The American economy has been over the path of progress though slowly but surely. The economy generated a higher than expected 117000 new jobs during July 2011, and analysts are sure that US economy will create at least around 3.5 million new jobs within 12 to 15

months. The big two agencies Moody's and Fitch are keeping the highest possible ratings triple A to American economy, being largest and sound the world over. There is no currency in the world to match the deliverance of US dollar.

The problems of deficit budgets and that of debts are not new to United State, this great country and its brave people had been facing and conquering such odds since the very inception of US. Debts incurred during the American revolutionary war and under the Articles of confederation led to the first reported value of 75.5 million dollars on January 1st 1791. From 1796 to 1811 there were 14 budget surpluses and only two deficits. The first dramatic growth spurt of the debt occurred because of the war of 1812. In the first 20 years following the war of 1812, 18 surpluses were experienced and the US paid of 99.97 per cent of its debts. The second dramatic growth spurt of debts occurred because of civil war. The debt was just $ 65 Million in 1860, but passed $1.00 billion in 1863 and had reached $2.7 billion following the war.

In the following 47 year America returned to practice of running surpluses during the time of peace, experiencing 36 surpluses and 11 deficits.

During this period 55 per cent of US national debt was paid off.

The next periods of major growth in debts were during 1st world war, and Second World War where in billions of dollars debts war recorded, but all were paid off.

After this period, the growth of gross public debts closely matched the rate of inflation, tripling in size from $260 billion in 1950 to around $909 billion in 1980. Gross debt in nominal dollars quadrupled during Reagan and Bush presidencies from 1980 to 1992. The net public debt quintupled in nominal terms. Gross debt relative to GDP declined after World War II, and then rose during the 1980s as part of cold war. During 1970s, debt held by public from 28 per cent of GDP to 26 per cent of GDP. In nominal dollars the net pub-

lic debt rose and then fell between 1992 and 2000 from $3 trillion in 1992 to $3.4 trillion in 2000. During 1990s, debt held by public rose to 50 per cent and then was reduced to 39 per cent by the end of decade.

During the present century gross debt has increased over $500 billion each year since fiscal year 2003, with increases of dollar one trillion in fiscal year 2008, $1.9 trillion in fiscal year 2009 and $1.7 trillion in fiscal year 2010. As on 3rd August 2011 the total public debt outstanding was $14.34 trillion of which $9.78 trillion was debt held by public and $4.56 trillion was intra governmental debt holdings. At the end of 2nd quarter of 2011, the US GDP was $15.003 trillion. Although the present picture does not speak of a highly satisfactory state of being but the past history of US dictates the 50 per cent of the present debt can be washed out with in next 10 to 12 years.

The gross public debt increased or decreased as a result of the budget deficit or surplus is the cash difference between government receipt and spending ignoring intra-governmental transfers.

The Obama administration neglected to try to increasing taxing the highly rich personalities in US and wealthy corporations in US, perhaps with the reason that election is due in 2012.

President Obama suffered a defeat in battle over raising the debt limit that may repercussions for his efforts to restore growth to US economy and win election for 2012. The outcome of debt dismayed Obama's liberal base just when he needs them for 2012 fund raising and support, and emboldened his Republican adversaries who forced him to accept more spending cuts. The only left will likely turn his attention to big push on measures to help economy and keep it from dipping back into recession. It would be far better to raise taxes on highly wealthy Americans and extra ordinary wealthy corporation having extra monetary reverses.

China possesses world's biggest for-

eign exchange reserves of around $3.2 trillion at the end of last June, and is the biggest holder of US treasuries. In the first official reaction from China's Central bank, a more after thought reaction by welcoming the deal between democratic forces in US. But stated that China will continue to diversify its foreign currency investments, enhancing risk management and minimizing the negative impact of volatility in global financial markets, large fluctuation and uncertainty in US treasury bonds market will effect the stability of international monetary and financial systems which will hurt global economic recovery.

Any how I am of the opinion that China has no choice but to continually buy US debt in significant amounts for the time being. I know that China is looking for diversification but it could only be in small margin. In fact that it is difficult for China to ignore buying US debt as no other market is as liquid as US debt market. The gold has a small market and it can not replace the paper money at all. Further US are the largest customer of China and she will not try to weaken US economy in any way, including encashment of US government securities in large amounts.

In most of Asian Stock markets panic selling was witnessed on Friday (0508-2011), due to heavy sale on Wall Street. All due to political battle over long term economic policy and debt ceiling, between Democrats and Republication mounting the fear that economy is sliding back towards severe recession.

Brent crude rose to above $108 a barrel on Friday (05-08-11), rebounding from the lowest since June, supported by better then expected news on creation of new jobs of 117000 during July 2011.

In my opinion things will settle within weeks. US is the largest economy encircles the entire world. The US people are highly educated, brave, creative and very well known to deal with odd situation successfully.

The First Step Counter Terrorism Anwar Parween

T

errorism is the main cause of all the sufferings we are going through. For the last ten years we have not only lost precious lives but the government infrastructure ha s also become fragile. The security is in doldrums. Almost every day the terrorists carry out blast at some place of their convenience and kill innocent civilians.

The security forces have given lot of sacrifices and are determined to overcome terrorism but this menace has become a Frankenstein Monster difficult to handle. Economy is down and investors are refraining from investing. Education is affected. The percentage of drop outs is increasing. Mostly the children and youngsters are deprived of educational facilities. The standard of education is declining which is very worrisome. Health problems are growing. Non-availability of specialists, medicines and facilities are again a problem. Load shedding and price hike are making life difficult.

People are committing suicides due to frustration.

Domestic violence is increasing. Children are being abused. People are selling their kidneys or are getting involved in illegal activities to earn a living for their families. Social relationships are breaking up.

Communication gaps are widening and isolation is creating serious law and order problems.

The most devastating scenario is that the behaviour of people is becoming irrational. Confusion, irritation and frustration are causing more damage than anything else. Some of the TV channels are polluting the environment in the name of freedom of media, poisoning the minds thus making the nation more vulnerable to fall into the trap of propagandists whose ultimate aim is to break the strong will of the nation.

How long this situation is going to continue and all of us are going to be the spectators? We have to take simple but reasonable steps with assertiveness. The most important approach is to decide to take control and stop everyone from adding to the miseries of the nation. The first step is stop criticism and blame game.

Follow the slogan 'we are one and united'. Nation and country is above all. Forget the differences and leave score settling for some other time. Start from the grassroots level and sit with the people without any tags of political parties and find out solution for the problems. For once trust the government irrespective of who are the individuals and what are their weaknesses. Tell them that they have to take practical steps and your support is with them. Build pressure on your representatives to listen to common man. Stand by the Armed forces and refute negative propaganda. There comes a time when enough is enough and you have to say "No".

Believe in the power of the people and the leader-

ship. The print and electronic media has an important role to play in this hour of need. The anchors should be well prepared and aware of the importance of topic to be discussed the objectives of programme and its impact.

The analyses should be based on facts and figures and objectives to be achieved should be clearly laid down. Personal views should not be included as these complicate the issues and lead to one sided discussions. They should also void fantasizing the situation and creating either a horrible scenario or as if the problems just do not exist.

Analysts should also be educated, experienced and people, who have some command over the subject, are known and enjoy credibility among people. They should be the one who take issues seriously. Discuss the problem highlighting the gains and losses and suggest solutions with practical approach.

It is time for self reckoning and making the nation stronger to overcome the damage already caused and overcome the difficulties. It is not too late, as we have our elders at homes, teachers at schools, sane politicians and disciplined institutions. The problems exist but there are many rays of hope. It is just a step forward to decide that from now on we are all going to fulfill our responsibilities with conscience and by self accountability. Difficult decisions of today can bring comfort for tomorrow.

Ratings under scrutiny after US cut F

rance and Britain are most vulnerable within Europe to a rating review following the U.S. downgrade, with anaemic growth and hefty borrowing placing them among the shakiest of the world's triple-A rated lenders.

Both countries have stable rating outlooks, making a sudden downgrade unlikely and markets have been so impressed by Britain's debt-cutting strategy that they have pushed its bond yields to record lows.

But a surge in the cost of insuring French debt against default on Monday highlighted alarm sparked by Friday's U.S. rating cut as banks and brokerages warned that rating agencies could now have top-rated European lenders in their sights.

"France has slipped into borderline AA+/Aa1/AA+ (one notch below AAA) territory, so risks to its AAA are rising as stresses spread," financial services firm BBH said in a note to clients.

In another indication of mounting concern over France, spreads between French and German 10-year bond yields hit all-time highs last week and remained wide on Monday.

The most likely trigger for France to be put on negative watch would be a failure by the government to get parliamentary backing for a constitutional limit on future public deficits, with opposition left-wing lawmakers vowing to reject it.

Euro zone outsider Britain looks less vulnerable, having its own currency which could slide in value and its own interest rate, but it could also come under review given its weaker economic fundamentals.

"There are ... lots of countries in

Europe that should be downgraded just as the U.S. has been downgraded," U.S. investor Jim Rogers, co-founder of the Quantum Fund, told Reuters Insider as world leaders battled to calm a market rout driven by concern about U.S. and European debt levels.

After making history by stripping America of its AAA-rating, Standard and Poor's reaffirmed France's top-notch status and stable outlook at the weekend.

Moody's and Fitch declined to comment, but neither has given any indication they could change their outlooks on the United States, France or Britain.

Providing further comfort, fund managers poured into French and British bonds in early trading as Friday's U.S. downgrade forced them to shift funds out of U.S. treasuries.

However, French five-year credit default swaps (CDS) surged 15.5 basis points on the day to a record-high 160 bps, according to data monitor Markit, taking it closer to the level of AA-rated states such as Belgium, though analysts warned the market often overreacts.

"The CDS market is very dysfunctional," said Mark Schofield, global head of interest rate strategy at Citi.

"Although France from the perspective of fiscal fundamentals looks the weakest of the triple-A issuers in Europe, I still think that given very low levels of yields, the depth of the domestic market, the ability to continue to fund at low levels, it's unlikely France will be downgraded in the near future."

As for Britain, he added: "It's unlikely that the UK will be downgraded. At this point in time, we've seen very significant fiscal tightening put in place."

FRENCH POLITICS IN FOCUS In the euro zone, only Austria, Finland, France, Germany, Luxembourg and the

Netherlands have a triple-A rating, and French debt costs the most to insure.

France also has the highest deficit, debt and primary deficit of any of them and it is the only triple-A euro zone country running a current account deficit.

Its debt to GDP ratio set to hit 86.9 percent next year and described by the national audit office as nearing the danger zone -- could be pushed even higher

by France's contribution to a new Greece bailout. S&P said in June it would probably downgrade France in the long term without further reforms and that to preserve its AAA rating France must balance its budget in the next five years, something not achieved since 1974.

It could re-examine its rating outlook as soon as the autumn if President Nicolas Sarkozy fails to win backing for his constitutional budget-balancing rule.

Winning would require a three-fifths majority in a two-chamber parliamentary vote and the opposition Socialist Party has vowed to vote against.

"It would be a call for action," for ratings agencies, said Deutsche Bank analyst Gilles Moec.

He said France was "intrinsically in a better situation" than the United States and could stave off a downgrade by accelerating deficit cuts, one idea being to raise value-added taxes and trim social contributions on labour.

Also weighing on France is a possible swing to a left-wing government after a presidential election next April. The Socialists have vowed to tinker, if they win, with a 2010 retirement reform aimed at cutting future pension costs.

WEAK GROWTH UK'S MAIN RISK Britain has an even bigger deficit, primary deficit and debt to GDP ratio than France, and also runs a current account

deficit but weak growth -- and the damaging effect that would have on its debt pile -- is its main threat.

Moody's warned in June that it could reconsider its stance on Britain in the event of lower growth combined with weak fiscal consolidation.

Citi's Schofield agreed, saying: "The big risks would be a very sharp slowdown in growth and/or huge political upheavals, if you started to get a breakdown in the coalition."

Broadly, however, markets have faith in Britain's ability to pay back its debt, despite a budget deficit of some 10 percent, because of an austerity plan that includes tax increases and unprecedented cuts in public spending.

Yields on 10-year gilts hit a record low of 2.59 percent last week and British debt continued to outperform European debt on Monday as investors looked for safe havens.

Yet, the economy has basically stalled over the last nine months and even the government's fiscal watchdog, the Office for Budget Responsibility, has acknowledged its growth forecast of 1.7 percent for 2011 looks too high.

Lower growth means lower tax receipts and maybe a higher welfare bill if unemployment rises, all of which will add to debt.

The opposition has called for emergency tax cuts and some observers were quick to blame riots in London over the weekend on public spending cuts and dire economic prospects.

"Notwithstanding the fact that the UK is still struggling with its own economic recovery, we are pretty confident that the coalition is going to hold in the UK," David Beers, head of Standard & Poor's sovereign ratings, told Reuters Insider. -Reuters

5

Tuesday, August 9, 2011

South East Asian stocks

Down on global growth fears; Singapore at 13-month low KSE-100 Index Opening Closing Change % Change Turnover (mn)

LSE-25 Index 2,762.06 2,783.39 21.33 0.77 2.69

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

2,517.55 2,507.00 10.55 0.42 0.04

Major Gainers

Symbol

Close

Change

ULEVER 5,942.35 NESTLE 3,997.14 COLG 702.36 BHAT 254.00 POL 346.78

282.96 29.38 12.03 11.74 9.26

Nawaz Ali KARACHI: After some heavy bearish activities in the beginning following the decline in regional capital markets and crude oil prices, Karachi Stock Exchange (KSE) managed to recover and close on a positive note on Monday as investors took benefit of attractive prices.

At the closing, the benchmark KSE-100 index was up 29 points to close at 11,404 points, KSE-30 index rose by 45 points to close at 10,815 points and KSE all-share index was up by

Major Losers

Symbol

Close

Change

SIEM IDYM MTL SFL AGTL

911.00 323.44 537.37 112.10 195.29

-25.21 -17.02 -11.53 -5.9 -5.71

Top 5 Volume Leaders

Symbol

Close Vol (mn)

PTC LOTPTA NBP ANL NML

10.57 10.73 46.31 4.58 40.10

7.31 7.15 6.98 6.32 5.64

Active Issues Plus Minus Unchanged

133 128 63

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

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

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

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

1,582

Sales (Apr 11)

1,640

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

186 203 -

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

MS (Jul 10 to Apr 11) MS (Apr 11) Kerosene (Jul 10 to Apr 11) Kerosene (Apr 11) JP (Jul 10 to Apr 11) JP (Apr 11) HSD (Jul 10 to Apr 11) HSD (Apr 11) LDO (Jul 10 to Apr 11)) LDO (Apr 11) Fuel Oil (Jul 10 to Apr 11) Fuel Oil (Apr 11) Others (Jul 10 to Apr 11) Others (Apr 11)

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

Result Preview

Ahmed Siddique KARACHI: Pakistan petroleum (PPL) is scheduled to announce its 2010-11 financial results today.

According to the "The Financial daily" Research, PPL's profit after tax is likely to record a 41.4 per cent growth to Rs32.97 billion (EPS: Rs 27.59). In FY10, the Company had posted net profit of Rs23.32 billion (EPS: Rs19.52). While we don't expect cash dividend as company has already announced a payout of Rs10 per share but announcement of 20 per cent bonus cannot rule out.

Net Sales of the firm is likely to increase by 31 per cent to Rs78.68 billion as against 59.96 billion in FY10. Top line

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

is likely to surge mainly due to higher oil production which swelled by 49 per cent YoY at 7.5kbpd from 5kbpd, mainly enhanced production from Mela and Nashpa field.

Similarly, gas production is likely to be up by 2 per cent to 970 mmcfd in FY11 against 956 mmcfd in FY10 owing to higher production form Manzalai field.

Exploration expenditures are expected to increase by 8 per cent at Rs19.73 billion as compared to Rs18.27 billion in FY10. Moreover, other operating income is likely to add to significantly towards profitability of the Company as it expected to surge by 61 per cent to Rs4.15 billion FY11 compared to Rs2.57 billion previously.

Indian shares slide 1.8pc MUMBAI: Indian shares shed 1.8 per cent on Monday, taking their losses to more than 7 per cent over five straight sessions, after Standard & Poor's downgrade of the US sovereign debt rating triggered a flight from risky assets in global stock markets.

Indian policymakers tried to calm the jittery markets, saying growth story in Asia's thirdlargest economy remained strong despite the global economic uncertainty, which helped the domestic market erase some of its losses.

But in an indication the global equities rout is unlikely to abate soon, S&P 500 futures SPc1 were trading 2.4 per cent lower by 1003 GMT, indicating a lower opening for the Wall Street on Monday.

Shares in leading software exporters Infosys and Tata Consultancy were among the biggest losers in the market on fears that demand from the United States, the sector's biggest market, will slow down amid the economic uncertainty.

See # 3 Page 11

Companies Forecasts Pakistan Petroleum Limited Research House

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

21 points to close at 7,912 points.

"In spite of sell off in Asian markets, across the board buying spree at cheap prices helped the local bourse to recover early losses", said Samar Iqbal, equity dealer at Topline Securities.

It should be noted that the regional stock markets fell on Monday after Standard & Poor's downgraded the US credit rating over the weekend by one notch from AAA to AA+.

Institutional buying was seen

PPL profits likely to grow by 41.4pc

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

OIL MARKETING CO (000 tons)

FTSE hits 13-month closing low

KSE recovers losses on buying spree

11,375.09 11,404.17 29.08 0.26 106.74

Opening Closing Change % Change Turnover (mn)

European shares hit 2-year low on growth concerns

PAT Rs (mn)

EPS

FY11

DIV/ BONUS 4QFY11

TFD Research

32,975

27.59

20%B

Arif Habib Limited

33,232

27.81

50%, 10%B

AZEE Securities

32,916

27.54

20%B

Topline Securities

33,009

27.60

20%B

InvestCap

32,960

27.58

-

BMA Capital

32,583

27.27

20%

Market Consencus

32,946

27.57

20%, 20%B

Previous year Result 23,321

19.52

50%, 20%B

Pakistan State Oil Research House

PAT Rs (mn)

EPS

DIV/ BONUS

FY11

4QFY11

TFD Research

12,037

70.18

50%

Arif Habib Limited

12,061

70.32

50%

AZEE Securities

12,022

70.09

50%

JS Global Capital

12,161

70.90

50% to 80%

InvestCap

12,350

72.00

50%

Market Consencus

12,126

70.70

50%

52.76

50%

Previous year Result 9,050

especially in fertilizer and banking stocks. Moreover, Attock group also remained in the limelight amid expectations of hefty payouts, she added.

Following the bearish trend in the regional markets over the news of US ratings downgrade, market opened the first session of the week on a negative note with 76 points down. Losses then accumulated rapidly crossing its triple century and within just initial half an hour index touched its lowest level of the day of 11,071 points (-ve 303).

Though, the index remained

BAFL earnings surge 77pc Ghulam Raza Rajani KARACHI: Bank Alfalah (BAFL) announced its half yearly financial result for the period ended June 30, 2011.

Profit after tax increased by 77 per cent to Rs1.91 billion (EPS: Rs1.41) as compared to Rs1.08 billion (EPS: Rs0.80) for the same period last year.

Interest income of the Bank was up 15.6 per cent to Rs 1.37 billion for 1HCY11 from Rs18.49 billion for the same period last year. Interest expenses grew by 3 per cent to Rs12.54 billion compared to Rs12.17 billion for 1HCY10.

Therefore, net interest income was up 39.8 per cent to Rs8.83 billion from Rs6.32 billion during the period under review.

Non-performing loans of BAFL swelled to Rs1.66 billion from Rs963 million, depicting surge of 72.7 per cent, while operating expenditure increased by 14 per cent to Rs6.84 billion for the period ended 1HCY11.

Nikkei slips over 2pc TOKYO: Japan's Nikkei stock average slid more than 2 per cent on Monday as weak sentiment following Standard & Poor's downgrade of the United States' credit rating was exacerbated by futures selling after Asian markets tumbled.

Analysts warned that persistent worries about the global economy could spark further selling in the longer term, while investors will continue reacting to the performance of other global markets.

"The three main concerns are S&P's downgrade of the US debt rating, the ongoing European debt problems and inflation worries in China," said Masanaga Kono, chief strategist at Amundi Japan.

"After nothing specific came out of the G7 teleconference, futures players were testing the water for a while but reacted to sharp falls in Asian markets."

The benchmark Nikkei closed down 2.2 per cent at 9,097.56 after dropping as low as 9,057.29. The broader Topix fell 2.3 per cent to 782.86.

The Nikkei is now down 8.1 per cent from its 25-day moving average, a sign that Tokyo stocks are oversold in the shortterm, but US market moves will likely remain the driving factor for now.

"The market may see a technical rebound in coming days but the direction of US markets after the downgrade will likely dominate the mood," said Eiji Kinouchi, a chief strategist at Daiwa Securities Capital Markets.

See # 4 Page 11

mainly in the negative zone but the continuous bearish activities had made the prices attractive and investors took benefit by buying at lower levels. Then gains were made gradually and index managed to bounce back into the positive zone during the later half where at a moment it touched an intra-day high of 11,424 points (+ve 49) an finally closed to that level.

Foreign investors were mainly on the selling side as according to NCCPL data, offshore investors did a net selling worth $1.37 million on Monday.

Investors' participation was marginally lower as 106.7 million shares traded during the day which was 6.4 million shares less as compared to a turnover of 113.1 million shares on Friday.

Pakistan Telecommunication was the top traded scrip with 7.3 million shares followed by Lotte Pakistan with 7.14 million shares and National Bank with 6.97 million shares.

Out of total 324 active issues; 133 advanced and 128 declined while 63 issues remained unchanged.

China, HK stocks drop to lowest since July 2010 HONG KONG: Hong Kong and China shares fell sharply on Monday to their lowest since July 2010, with retail investors selling bank stocks and industrials in the wake of a US credit rating downgrade that added to widespread risk reduction that was already under way.

An early uptick in European shares after the European Central Bank bought Italian and Spanish bonds helped Hong Kong shares cut losses on the day, after investors discounted an earlier pledge by G20 finance chiefs and central bankers to calm global markets.

However, shares in Hong Kong remained on shaky ground. "People are trading on fear at the moment," said Hong Hao, a global strategist at CICC. "This ECB move is just a short term fix, it doesn't change anything fundamental."

The Hang Seng Index fell for the fifth straight session, ending down 2.2 per cent at 20,490.6 points, sinking the

benchmark further into oversold territory on the charts as its relative strength index (RSI) value sank to its second-lowest since January last year.

Turnover declined almost 20 per cent from Friday's 8-1/2 month high as some investors chose to sit out the volatility.

Traders and analysts said there were still investors holding onto assets that could spark steeper losses ahead.

"There are a lot of guys who've cashed out as much as their mandates allow them," said a Hong Kong-based trader.

"If you are a long-short mutual fund, most of them don't have the flexibility to hold a lot of cash so they have to be doing something somewhere," he added.

CICC's Hong said some hedge funds could be forced to sell in the near term, under pressure from spooked investors who want to cut their losses and sit out this period of volatility.

See # 2 Page 11

ANNOUNCEMENTS Company Period Bank Al-Falah Half Yearly Engro Polymer Half Yearly Engro Polymer (Consolidated) Half Yearly Inter.Steel Ltd. Yearly

Div/Bon/Right -

PAT (Rs in mn) 1,908.49 -207.148 -195.099 -79.402

EPS(Rs) 1.41 -0.31 -0.29 -0.22

LONDON: The FTSE 100 fell for the seventh consecutive trading day on Monday, with investors continuing to drop stocks in favour of safer assets, unconvinced that governments and central banks have a grip on the global debt crisis.

Miners, banks and integrated oil stocks led London's bluechip index down 178.04 points, or 3.4 per cent, to 5,068.95, its lowest closing level since July 7, 2010.

The FTSE volatility index, a gauge of investor fear, shot up more than 28 per cent on Monday, having risen all last week.

The sell-off since July 29 wiped $3.4 trillion off the value of world stocks, a sum equivalent to Germany's GDP. But the retreat on equity markets is still some way less pronounced than the crashes 2008 or 1987.

The European Central Bank on Monday bought Spanish and Italian bonds to halt contagion from the debt crisis in the peripheral euro zone nations, but that only briefly delayed a selloff from a cut in the US credit rating by Standard & Poor's after the markets closed on Friday.

"Markets do not generally move in one direction; in a bear market, there are normally short squeezes -- times when the market goes up, albeit temporarily.

Where are the bargain hunters?" said Louise Cooper, markets analyst at BGC Partners.

"To me, these failed rallies are not a good sign and indicate the depth of investor concern."

There was further concern over the health of the world's biggest economy after a gauge of the US job market declined in August.

"The principal concern is the growth outlook and the extent to which the growth outlook and the global recovery is being compromised ... It's all a hangover from the pre-crisis era, which was funded by leverage," said Philip Poole, global head of macro investment strategy at HSBC Global Asset.

Analysts also said liquidity was playing a major role in the decline of Weir's shares, which have fallen more than 27 per cent in the last 10 trading days.

Citigroup said the market was pricing in a 27 per cent earnings per share downgrade to its 2012 forecasts for the engineering sector.-Reuters

Dhiyan

BULLISH BUT CAUTIOUS Mohammad Siddique Dalal, Chairman, Dalal Securities As market witnessed mostly bearish activities over the last few days, we would see some recovery moving forward. Levels are attractive and provide a good opportunity for the investors. They can invest in oil & gas and fertilizer sectors and in selective stocks of the banking and cement sectors. The only potential threat is if foreign investors opt for selling, which could dampen the sentiments, while decline in international crude oil prices bodes well for the economy.

Market would be positive today.

Faran Rizvi, Technical Analyst, Invisor Securities The sentiments of the market are still bearish and index can fell down to 10,600 levels. However, on the upper side 11,659 points would be the resistance level. Therefore, investors are recommended to invest in highly divided paying stocks only. They can invest in oil & gas, fertiliser and power stocks. Market would be positive today.

6

Tuesday, August 9, 2011

Market

KSE 100 Index

Symbols

Volume

106,740,438

Value

4,380,387,062

Trades

51,803

Advanced Declined Unchanged Total

Current High Low Change

133 128 63 324

All Share Index

11404.17 11437.93 11070.28 h29.08

Current High Low Change

7912.63 7935.15 7687.74 h21.11

OIL AND GAS

Company

Paid up Cap(mn)

PE

High Low 1,436.35 1,359.50 Total cos Defaulter cos 12 P/BV (x) ROE (%) 3.04 32.54

Open

High

Low

Attock Petroleum 691 6.02 332.97 Attock Refinery 853 3.63 112.53 BYCO Petroleum 3921 7.39 Mari Gas Company 735 3.75 95.48 National Refinery 800 4.75 340.19 Oil & Gas Development 43009 9.22 139.01 Pak Petroleum 11950 7.57 202.79 Pak Oilfields 2365 7.65 337.52 Pak Refinery Limited 350 35.64 67.14 P.S.O 1715 3.08 218.00 Burshane LPG 226 - 21.20 Shell Pakistan 685 7.51 205.23

339.86 111.99 7.62 100.20 345.90 138.00 207.30 349.00 64.50 217.49 20.21 215.00

316.35 106.91 6.90 90.71 323.19 132.06 195.51 325.25 63.79 207.10 20.14 195.25

Close Chg 333.40 110.79 7.23 91.66 344.13 136.23 206.95 346.78 63.79 215.26 20.95 211.13

0.43 -1.74 -0.16 -3.82 3.94 -2.78 4.16 9.26 -3.35 -2.74 -0.25 5.90

Current High Low Change

KMI 30 Index Current High Low Change

10815.22 10848.95 10409.78 h45.82

20151.89 20189.08 19367.26 h187.12

Last 60 days High Low

Volume 409575 1708386 1653188 155723 342283 1902537 1570962 1189421 22759 2014704 2207 10589

394.90 143.50 10.10 113.75 390.00 157.51 219.70 391.69 89.25 291.50 25.60 233.00

316.35 106.91 6.90 90.71 323.19 132.06 195.51 324.90 63.79 207.10 20.14 195.25

% Change 0.05 5-Day High 1,545.99 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

Company

Paid up Cap(mn)

Open 733.10 Turnover 7,270 P/E (x) 4.54 Company

High Low 754.61 702.68 Total cos Defaulter cos 4 2 P/BV (x) ROE (%) 1.16 25.53

Close 737.75 Listed cap 3,242.17 mn Payout (%) 11.08

Change 4.65 Market cap 11,208.23 mn Div Yield (%) 2.44

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1092 1321

6.91 6.12

74.17 21.61

76.99 21.10

71.01 20.75

75.11 0.94 20.87 -0.74

5660 1610

91.20 29.50

Pak Int Cont. Terminal PNSC

70.00 20.75

Open

High

Low

Agritech Limited 3924 Bawany Air 75 4.26 BOC (Pak) 250 7.61 Clariant Pak 341 5.82 Dawood Hercules 4813 2.56 Descon Chemical 1996 Descon Oxychem Ltd. 1020 7.38 Dewan Salman 3663 Engro Corporation Ltd 3933 5.81 Engro Polymer 6635 Fatima Fertilizer 22000 Fauji Fertilizer 8482 8.15 Fauji Fert. Bin Qasim 9341 6.07 Ghani Gases Ltd 725 9.14 ICI Pakistan 1388 7.56 Lotte Pakistan 15142 3.00 Mandviwala 74 Nimir Ind Chemical 1106 12.17 Pak Gum 42 5.31 Sitara Chem Ind 214 2.21 Sitara Peroxide 551 4.36 Wah-Noble 90 4.80

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 1.00 2.70 20.32 93.34 14.41 34.40

17.50 8.48 101.00 144.99 44.99 1.75 5.17 1.92 131.40 8.39 15.70 157.50 46.24 11.00 141.01 10.83 0.80 2.85 19.34 90.00 14.49 34.00

16.93 8.48 100.00 139.02 42.44 1.55 4.45 1.60 122.84 7.25 14.31 150.00 44.02 10.51 133.83 9.81 0.51 2.47 19.33 89.00 13.41 33.35

Close Chg 17.40 8.48 101.00 143.36 44.07 1.59 5.02 1.81 130.09 8.29 15.58 156.85 46.08 10.88 136.02 10.73 0.78 2.80 19.33 89.00 14.09 34.00

-0.53 -1.00 -1.00 -1.64 -0.60 0.01 0.22 0.03 0.79 0.37 0.60 2.85 0.94 -0.22 -4.85 0.04 -0.22 0.10 -0.99 -4.34 -0.32 -0.40

Close 1,760.19 Listed cap 52,251.88 mn Payout (%) 48.81

Last 60 days High Low

Volume 1410 7000 7710 6290 296976 131000 518876 1425497 2980775 836483 1956693 1477459 3532381 31514 246255 7146699 35504 189458 4980 4520 231974 1000

Change 21.30 Market cap 354,240.19 mn Div Yield (%) 6.19

20.80 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 1.90 3.30 20.33 102.00 18.60 37.99

16.50 6.11 92.75 139.02 42.44 1.52 4.45 1.60 122.84 7.25 12.20 138.50 41.45 10.51 133.83 9.81 0.15 2.26 17.50 89.00 13.41 33.35

% Change 1.22 5-Day High 1,857.50 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 1,061.78 Turnover 57,570 P/E (x) 5.37 Company

Paid up Cap(mn)

Century Paper Pak Paper Product Security Paper

PE

707 74.38 50 1.77 411 5.32

Open 15.32 41.55 39.64

High 15.90 41.01 41.00

High Low 1,096.14 1,048.47 Total cos Defaulter cos 4 1 P/BV (x) ROE (%) 0.40 7.47 Low 15.20 41.00 39.02

Close Chg 15.62 0.30 41.55 0.00 40.73 1.09

Close 1,085.82 Listed cap 1,186.83 mn Payout (%) 25.28

Last 60 days High Low

Volume 34355 225 22990

Change 24.04 Market cap 2,995.61 mn Div Yield (%) 4.70

18.00 45.59 43.55

14.66 40.00 39.00

% Change 2.26 5-Day High 1,126.76 5-Day Low 1,061.78

2010 Div BR (%) (%)

2011 Div BR (%) (%)

2533.33B 50 - 50.00

Open 1,079.52 Turnover 801,959 P/E (x) 3.58 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 Sazgar Engineering

High Low 1,099.18 1,060.41 Total cos Defaulter cos 19 4 P/BV (x) ROE (%) 0.91 25.35

Close 1,090.76 Listed cap 6,768.53 mn Payout (%) 20.42

PE

Open

High

Low

Close Chg

Volume

144 4.19 101 6.09 719 6.99 1087 71 2.53 598 4.10 450 1428 786 7.01 823 14.72 150 1.10

66.60 227.16 116.21 1.91 180.80 22.11 2.55 9.07 201.00 65.25 23.54

68.00 230.00 118.00 2.34 188.50 21.99 3.00 10.00 204.00 65.54 23.00

64.50 222.00 116.00 1.80 175.00 21.40 2.30 9.25 197.20 64.75 22.40

67.99 1.39 229.38 2.22 116.86 0.65 2.30 0.39 183.92 3.12 21.50 -0.61 2.53 -0.02 9.54 0.47 202.92 1.92 65.36 0.11 22.40 -1.14

18121 8112 795 124925 3233 11700 11900 612732 4142 5197 1100

Close 957.81 Listed cap 3,596.11 mn Payout (%) 30.91

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

Crescent Steel

565

3.30

25.00

25.49

24.11

25.22 0.22

31120

Dost Steels Ltd

675

-

1.86

2.02

1.52

2.00 0.14

50125

Huffaz Pipe XD

555 18.66

10.25

10.45

10.45

10.45 0.20

810

Company

Change 12.75 Market cap 13,920.61 mn Div Yield (%) 11.22

Last 60 days High Low 29.25

2010 Div BR (%) (%)

24.11

30

3.10

1.52

-

12.95

10.25

-

2011 Div BR (%) (%)

- 35.00

-

-

-

-

25B 15.00

-

Inter.Steel Ltd.

4350

-

12.36

13.24

11.40

11.79 -0.57

156122

15.06

0.00

-

-

-

-

International Ind

1199

8.54

46.49

48.00

44.20

47.73 1.24

132812

52.75

44.20

40

20B

15

-

785 22.97

8.51

8.95

7.80

8.04 -0.47

2206

10.00

7.80

7.5

-

-

-

Siddiqsons Tin

Company

Paid up Cap(mn)

Abdullah Shah Ghazi Sugar793 Bawany Sugar 87 Chashma Sugar 287 Colony Sugar Mills 990 Habib Sugar 750 Habib-ADM Ltd 200 Haseeb Waqas 324 J D W Sugar 539 Mirpurkhas Sugar 84 Mirza Sugar 141 National Foods 414 Noon Pakistan 48 Noon Sugar 165 Quice Food 107 S S Oil 57 Sakrand Sugar 223 Sanghar Sugar 119 Shahmurad Sugar 211 Shahtaj Sugar 120 Shakarganj Mills 695 UniLever Pakistan 665

PE

Company

Paid up Cap(mn)

Al-Abbas Cement Attock Cement Berger Paints Buxly Paints Dadabhoy Cement Dewan Cement DG Khan Cement Ltd Fauji Cement Fecto Cement Flying Cement Ltd Frontier Ceramics Gammon Pak Kohat Cement Lafarge Pakistan Cmt. Lucky Cement Maple Leaf Cement Pioneer Cement Safe Mix Concrete Shabbir Tiles

PE

Open

High

Low

3657 866 5.32 182 14 982 15.00 3891 4381 27.72 13311 5.98 502 3.45 1760 77 283 1288 13126 56.50 3234 4.80 5267 2271 200 721 -

2.00 42.61 12.95 7.00 2.11 1.15 20.88 3.43 4.27 1.08 2.56 1.00 5.40 2.12 71.09 1.74 3.73 4.33 6.02

2.50 42.20 12.85 6.00 2.25 1.65 21.30 3.80 4.50 1.11 1.60 0.50 5.75 2.28 73.00 1.95 3.84 5.33 7.02

1.82 40.50 12.00 6.00 1.95 1.15 20.10 3.33 3.30 0.95 1.60 0.50 5.25 2.02 69.31 1.58 3.50 4.00 5.50

Close 812.55 Listed cap 54,792.74 mn Payout (%) 19.04

Change 10.56 Market cap 66,211.09 mn Div Yield (%) 3.61

Close Chg

Volume

Last 60 days High Low

2.06 42.00 12.46 6.00 1.95 1.38 20.79 3.47 4.00 1.08 1.60 0.50 5.73 2.26 72.32 1.88 3.65 4.33 6.90

18602 13592 9945 2400 1301 141303 2435699 370081 8215 38165 4551 4000 5552 547637 1639386 258832 35945 172 25461

3.25 56.01 16.50 8.45 2.30 2.67 25.85 5.04 7.44 1.95 3.87 1.79 7.60 3.35 77.43 3.05 6.34 5.79 7.49

0.06 -0.61 -0.49 -1.00 -0.16 0.23 -0.09 0.04 -0.27 0.00 -0.96 -0.50 0.33 0.14 1.23 0.14 -0.08 0.00 0.88

1.82 40.50 12.00 6.00 1.50 1.10 20.10 3.33 3.30 0.65 1.35 0.50 5.20 2.02 69.29 1.55 3.50 4.00 5.37

% Change 1.32 5-Day High 847.90 5-Day Low 801.99

2010 Div BR (%) (%)

2011 Div BR (%) (%)

- 100R 50 - 122R - 20R - 20R - 92R 40 - 40.00 - 100R

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 931.88 Turnover 233,619 P/E (x) 2.58

High Low 949.00 909.19 Total cos Defaulter cos 13 2 P/BV (x) ROE (%) 1.13 43.91

Close 939.37 Listed cap 3,043.31 mn Payout (%) 15.55

Change 7.50 Market cap 34,510.52 mn Div Yield (%) 6.04

% Change 0.80 5-Day High 977.68 5-Day Low 931.88

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

Cherat Packagin ECOPACK Ltd

172 230

2.06 -

43.00 1.31

44.00 1.49

41.01 1.06

42.02 -0.98 1.44 0.13

32706 107333

53.25 1.80

41.01 1.06

20 -

25B -

-

50R -

Ghani Glass MACPAC Films

1067 389

5.32 1.82

53.25 9.76

54.00 10.74

52.00 9.13

52.32 -0.93 9.14 -0.62

2425 510

58.50 14.35

51.00 9.13

25 -

10B -

-

-

95342 27923

118.00 188.90

100.80 163.05

32.5 100

-

-

-

Company

Packages Ltd Tri-Pack Films

844 17.71 102.54 300 7.33 180.13

107.00 101.00 106.23 3.69 187.99 173.00 187.99 7.86

2010 Div BR (%) (%)

2011 Div BR (%) (%)

INDUSTRIAL ENGINEERING Performance of SR Industrial Engineering Index Open 1,605.21 Turnover 86,424 P/E (x) 7.22 Company Ados Pak AL-Khair Gadoon AL-Ghazi Tractor

Paid up Cap(mn)

PE

Open

66

3.30

9.08

100 215

4.80 3.37 201.00

Dewan Auto Engineering 214 Ghandhara Ind 213

7.18

KSB Pumps Millat Tractors

- 31.75 8.16 548.90

Pak Engineering

132 366 57

-

1.12 6.03

48.95

High Low 1,584.63 1,529.95 Total cos Defaulter cos 11 1 P/BV (x) ROE (%) 2.75 38.02

Close 1,571.91 Listed cap 1,336.62 mn Payout (%) 131.49

Change 11.24 Market cap 40,197.81 mn Div Yield (%) 5.71

Last 60 days High Low

Last 60 days High Low

2010 Div BR (%) (%)

Close Chg

9.00

9.00

9.00 -0.08

5100

10.75

7.70

-

-

-

-

5.55 3.80 4.80 0.00 207.00 191.25 195.29 -5.71

2002 3250

6.25 244.00

3.80 191.25

400

-

-

-

-

-

-

25B325.00

-

1.00 -0.12 6.03 0.00

16608 202

2.15 9.78

0.75 5.72

-

31.75 30.17 31.65 -0.10 540.48 522.51 537.37 -11.53

2757 56305

40.44 625.80

30.17 522.00

12.5 650

99.20

47.07

100

48.95

0.75 5.72

48.95

48.95

0.00

200

-

-

-

High

Open 582.16 Turnover 77,490 P/E (x) 1.08

Low

64.50 208.00 112.10 1.50 163.10 21.40 2.30 8.55 197.20 61.35 22.01

Close Chg

Close 2,318.75 Listed cap 11,335.33 mn Payout (%) 30.57

Volume

2010 Div BR (%) (%) 90 100 50 60 20 150 5 10

20B 15B 20B

Change 63.36 Market cap 327,782.94 mn Div Yield (%) 0.58

Last 60 days High Low

1000 6.90 2.90 500 9.80 7.50 1001 11.75 8.00 10000 2.99 1.51 134513 28.00 23.30 5650 13.74 11.14 504 12.50 8.25 14265 90.49 74.05 2480 54.50 41.00 3440 3.50 2.30 911 88.00 60.00 300 22.15 18.31 1000 17.50 13.95 312628 6.99 1.81 1000 5.78 4.10 4000 3.40 2.00 5000 13.01 11.25 2693 11.40 7.91 30030 71.50 60.00 381315 6.99 4.05 502 6135.00 4915.70

High Low 584.92 560.16 Total cos Defaulter cos 15 7 P/BV (x) ROE (%) 0.12 10.64

Paid up Cap(mn)

PE

Open

High

Low

Gauhar Engineering Ltd 22 Hala Enterprise 68 Pak Elektron 1219 Tariq Glass Ind 693

1.21

1.00 9.00 5.47 8.81

1.20 9.98 5.41 9.49

1.20 9.98 5.10 8.10

Company

2011 Div BR (%) (%) 65.00 60.00 50.00 10.00

15B 25B -

15.50

Total Assets (Rs in mn)

MA (10-day)

3.11

Total Equity (Rs in mn)

MA (100-day)

4.09

Revenue (Rs in mn)

17,057.30

MA (200-day)

4.64

Interest Expense

1st Support

2.29

Profit after Taxation

2nd Support

2.20

EPS 10 (Rs)

1.909

1st Resistance

2.49

Book value / share (Rs)

23.10

2nd Resistance

2.60

PE 11 E (x)

2.68

Pivot

2.40

PBV (x)

0.10

3,361.27 10,693.34 1,072.77 277.86

KTML closed down -0.68 at 2.32. Volume was 647 per cent above average (trending) and Bollinger Bands were 12 per cent narrower than normal. The company's profit after taxation stood at Rs140.023 million which translates into an Earning Per Share of Rs0.65 for the nine months of fiscal year (9MFY11).

KTML is currently 50.0 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 very strong flows of volume out of KTML (bearish). Trend forecasting oscillators are currently bearish on KTML. Momentum oscillator is currently indicating that KTML is currently in an oversold condition.

Soneri Bank Limited

% Change 2.81 5-Day High 2,373.17 5-Day Low 2,255.39

2010 Div BR (%) (%)

2011 Div BR (%) (%)

10 25 25B 40 10 7010B 12.5R 15 20B 10 12 12 15 10 492 -

-

10R -

Fundamental Highlights As on Dec 31, 2010

Technical Analysis RSI (14-day)

14.93

Total Assets (Rs in mn)

MA (10-day)

4.72

Total Equity (Rs in mn)

MA (100-day)

5.72

Revenue (Rs in mn)

MA (200-day)

6.41

Interest Expense

1st Support

3.65

Profit after Taxation

2nd Support

3.25

EPS 10 (Rs)

0.208

Book value / share (Rs)

13.92

1st Resistance

4.45

108,105.68 8,381.36 11,478.93 0.00 125.44

2nd Resistance

4.85

PE 11 E (x)

2.00

Pivot

4.05

PBV (x)

0.29

SNBL closed down -0.24 at 4.00. Volume was 1,431 per cent above average (trending) and Bollinger Bands were 57 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 37.6 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 very strong flows of volume out of SNBL (bearish).

Trend forecasting oscillators are currently bearish on SNBL. Momentum oscillator is currently indicating that SNBL is currently in an oversold condition.

Saif Textile Mills Limited

Paid up Cap(mn)

Amtex Limited Artistic Denim Azam Textile Azgard Nine Bannu Woolen XD Bata (Pak) Bhanero Tex Mills Blessed Tex Mills Chenab Limited Colgate Palm Colony Mills Ltd Colony Sarhad D S Ind Ltd Dawood Lawrencepur Dewan Khalid Textile Din Textile Faisal Spinning Gadoon Textile XD Ghani Value Glass Gulistan Spinning Gulshan Spinning Hira Textile Mills Ltd. Ibrahim Fibres Ideal Spinning Idrees Textile Indus Dyeing J K Spinning Kohinoor Ind Kohinoor Mills Kohinoor Spinning Kohinoor Textile Maqbool Textile Masood Textile Mohd Farooq Mukhtar Textile Nadeem Textile Nishat (Chunian) Nishat Mills Pak Synthetic Prosperity Ravi Textile Reliance Cotton Rupali Poly Saif Textile Salfi Textile Sally Textile Sana Ind Sapphire Fibre Service Ind Shadman Cot Shahtaj Textile Thal Ltd Treet Corp Zil Limited

2594 840 133 4493 76 76 30 64 1150 316 2442 40 600 591 57 204 100 234 75 146 222 716 3105 99 180 181 184 303 509 1300 2455 168 600 189 145 120 1621 3516 560 185 250 103 341 264 33 88 55 197 120 176 97 307 418 53

1.20 9.98 5.20 9.14

0.20 0.98 -0.27 0.33

Volume 500 1000 73583 3407

Change -9.42 Market cap 4,076.95 mn Div Yield (%) 5.80

Last 60 days High Low

2010 Div BR (%) (%)

1.55 9.98 8.60 13.33

17.5

0.31 7.00 5.10 8.10

10B -

% Change -1.62 5-Day High 613.01 5-Day Low 572.74 2011 Div BR (%) (%) - 200R

979 250 2019 182 200 96 306

MA (10-day)

7.06

Total Equity (Rs in mn)

MA (100-day)

8.26

Revenue (Rs in mn)

4,722.15 406.03 4,642.45

6.91

Interest Expense Profit after Taxation

77.49

Performance of SR Personal Goods Index

2nd Support

4.35

EPS 10 (Rs)

2.934

1st Resistance

5.70

Book value / share (Rs)

15.37

2nd Resistance

6.35

PE 11 E (x)

0.17

Pivot

5.35

PBV (x)

0.33

High Low 950.42 932.35 Total cos Defaulter cos 211 73 P/BV (x) ROE (%) 0.48 8.64

Close 940.79 Listed cap 47,070.70 mn Payout (%) 16.68

PE

Open

High

Low

Close Chg

Volume

8.42 0.42 0.60 7.65 0.81 0.98 19.01 1.56 0.29 0.69 0.82 0.54 6.17 0.37 0.29 0.63 2.29 0.22 1.80 3.08 0.69 0.43 2.67 1.97 1.65 3.10 2.42 3.56 2.32 0.89 0.48 2.49 0.17 0.33 0.23 2.56 0.94 3.06 15.74 1.54 6.23 5.71

1.94 25.35 2.35 4.58 15.25 649.30 242.26 101.00 1.10 690.33 1.50 0.30 0.89 27.24 2.19 33.25 57.70 59.07 24.07 7.00 7.00 3.10 33.74 4.00 4.60 340.46 7.35 0.98 1.10 1.30 3.00 10.10 18.80 0.65 0.48 53.77 16.68 41.08 19.61 14.00 0.88 26.00 34.71 6.00 61.75 6.32 35.50 118.00 179.10 18.00 28.00 93.31 49.62 52.73

2.20 26.61 2.30 4.77 14.89 680.00 254.00 103.00 1.40 724.83 1.75 1.30 1.10 26.62 1.95 34.91 60.00 56.15 23.00 6.00 7.00 3.39 32.06 3.49 4.70 323.44 6.35 1.00 1.25 1.25 2.51 9.10 17.80 0.50 0.48 56.45 15.99 40.50 18.90 14.49 1.85 24.70 35.45 6.00 64.83 6.24 35.00 112.10 182.95 17.00 29.25 93.00 49.90 53.89

1.71 24.09 2.30 3.90 14.30 650.00 254.00 99.00 1.15 700.00 1.42 1.30 0.80 25.88 1.95 34.00 59.50 56.12 23.00 6.00 6.00 3.16 32.06 3.00 4.70 323.44 6.35 0.89 1.25 1.10 2.31 9.10 17.80 0.35 0.26 56.45 15.68 39.03 18.61 13.00 0.31 24.70 33.00 5.00 64.05 5.51 33.73 112.10 171.01 17.00 26.75 88.65 47.15 51.00

2.14 0.20 26.61 1.26 2.30 -0.05 4.58 0.00 14.40 -0.85 650.00 0.70 254.00 11.74 102.17 1.17 1.23 0.13 702.36 12.03 1.50 0.00 1.30 1.00 0.89 0.00 26.62 -0.62 1.95 -0.24 34.50 1.25 59.88 2.18 56.12 -2.95 23.00 -1.07 7.00 0.00 6.90 -0.10 3.16 0.06 32.06 -1.68 3.01 -0.99 4.70 0.10 323.44-17.02 6.35 -1.00 1.00 0.02 1.10 0.00 1.25 -0.05 2.32 -0.68 9.10 -1.00 17.80 -1.00 0.35 -0.30 0.47 -0.01 56.45 2.68 15.72 -0.96 40.10 -0.98 18.61 -1.00 13.66 -0.34 0.77 -0.11 24.70 -1.30 33.09 -1.62 5.00 -1.00 64.64 2.89 6.05 -0.27 33.73 -1.77 112.10 -5.90 179.45 0.35 17.00 -1.00 27.50 -0.50 89.99 -3.32 49.85 0.23 52.73 0.00

824613 7000 500 6315078 600 403 200 117119 11706 292 19003 500 141412 355 2500 3034 650 9155 4000 106 33600 23100 1000 9012 3264 200 2625 37501 499 85000 311285 500 500 99411 7001 119500 3093535 5639902 1501 900 22000 49160 20866 103144 500 4500 15712 2000 2039 1000 5501 75350 13253 300

Open 944.20 Turnover 43,232 P/E (x) 6.06

Abbott (Lab) Ferozsons (Lab) GlaxoSmithKline Highnoon (Lab) IBL HealthCare Ltd Sanofi-Aventis Searle Pak

Total Assets (Rs in mn)

4.70

Change -3.97 Market cap 111,015.17 mn Div Yield (%) 3.03

Last 60 days High Low 3.76 27.10 2.99 7.09 19.55 716.00 257.25 105.00 2.44 825.00 2.64 1.30 1.39 37.50 2.48 39.70 60.00 73.44 25.27 8.41 12.16 4.45 47.00 7.00 5.74 398.00 8.45 1.64 2.83 2.00 4.69 12.00 20.59 1.20 1.39 56.45 26.45 61.99 20.90 15.45 1.85 28.72 42.50 9.10 76.50 8.94 41.48 123.90 214.95 23.94 29.89 108.00 59.20 67.00

1.70 21.57 1.78 3.90 14.30 442.02 225.00 56.07 1.10 684.50 1.32 0.30 0.80 25.88 1.10 26.50 41.30 56.12 22.50 6.00 6.00 3.00 32.06 3.00 3.80 276.70 5.05 0.75 0.71 0.65 2.31 8.25 17.00 0.23 0.16 18.96 15.68 39.03 17.60 13.00 0.31 24.70 33.00 5.00 49.00 5.44 33.73 112.10 170.00 12.90 24.00 88.65 47.15 51.00

2010 Div BR (%) (%)

% Change -0.42 5-Day High 959.05 5-Day Low 940.79 2011 Div BR (%) (%)

- 30B 20 7.5 20 280 200 50 135 15B140.00 5 15B 20 10B 50 70 25 10 10 20B 10 20 10 50 - 50.00 20 5B 10.00 5 22.5 15 100R 20 15 25 45R 30 20 40 25 10 60 15 75 5 45 80 20B 50 900B 35 -

15B -

PHARMA AND BIO TECH

Paid up Cap(mn)

17.35

1st Support

Performance of SR Pharma and Bio Tech Index

Company

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

MA (200-day)

Open 944.76 Turnover 17,243,605 P/E (x) 5.50 Company

Close Chg

Close 572.74 Listed cap 3,763.71 mn Payout (%) 6.27

PERSONAL GOODS

2011 Div BR (%) (%)

Low

73.00 241.50 160.00 3.46 235.00 24.85 4.41 11.58 232.53 72.50 24.90

% Change 1.04 5-Day High 1,114.75 5-Day Low 1,079.52

Fundamental Highlights As on Jun 30, 2010

Technical Analysis RSI (14-day)

Performance of SR Household Goods Index

% Change -2.07 5-Day High 1,711.58 5-Day Low 1,571.91

High

1.60 6.54

Volume

Change -33.30 Market cap 30,840.76 mn Div Yield (%) 18.20

-

HOUSEHOLD GOODS

Performance of SR Construction and Materials Index High Low 831.80 778.05 Total cos Defaulter cos 37 6 P/BV (x) ROE (%) 0.37 7.10

Open

High Low 2,327.70 2,268.89 Total cos Defaulter cos 61 16 P/BV (x) ROE (%) 15.99 30.30

3.77 3.03 3.00 2.90 2.90 -0.13 9.09 8.10 8.10 8.10 -0.99 5.92 10.00 9.02 9.00 9.00 -1.00 2.03 1.95 1.97 1.97 1.97 0.02 5.00 24.97 24.99 23.81 24.99 0.02 5.04 11.52 12.52 11.14 12.51 0.99 10.99 11.98 11.75 11.70 0.71 2.58 76.88 80.39 74.05 78.54 1.66 1.44 48.33 49.90 46.10 49.47 1.14 0.55 2.47 2.43 2.41 2.43 -0.04 10.40 61.75 62.00 60.00 60.22 -1.53 5.26 19.31 18.31 18.31 19.31 0.00 2.68 14.95 13.95 13.95 13.95 -1.00 13.34 5.72 6.06 5.03 5.87 0.15 0.31 4.15 4.30 4.10 4.30 0.15 2.35 2.36 2.36 2.36 0.01 2.32 11.75 11.30 11.25 11.25 -0.50 1.30 9.57 9.75 9.50 9.75 0.18 2.74 65.50 68.77 68.77 68.77 3.27 2.03 4.95 5.79 4.80 4.80 -0.15 21.98 5659.39 5942.35 5815.00 5942.35 282.96

CONSTRUCTION AND MATERIALS Open 801.99 Turnover 5,560,706 P/E (x) 5.27

2011 Div BR (%) (%)

- 50SD -

FOOD PRODUCERS Open 2,255.39 Turnover 912,780 P/E (x) 52.76

-

% Change 1.35 5-Day High 1,012.24 5-Day Low 945.06

40 15

Performance of SR Food Producers Index

Performance of SR Industrial Metals and Mining Index High Low 973.88 899.71 Total cos Defaulter cos 7 1 P/BV (x) ROE (%) 0.91 33.10

2010 Div BR (%) (%)

Performance of SR Automobile and Parts Index

INDUSTRIAL METALS AND MINING Open 945.06 Turnover 217,073 P/E (x) 2.76

% Change 0.63 5-Day High 789.20 5-Day Low 733.10

AUTOMOBILE AND PARTS

Company

High Low 1,772.83 1,678.69 Total cos Defaulter cos 36 6 P/BV (x) ROE (%) 2.76 35.00

PE

Kohinoor Textile Mills Limited

Performance of SR Industrial Transportation Index

Close Change 1,423.18 0.74 Listed cap Market cap 65,194.15 mn 1,038,918.76 mn Payout (%) Div Yield (%) 55.94 5.98

Performance of SR Chemicals Index Open 1,738.90 Turnover 18,982,761 P/E (x) 7.89

Alert ! Unusual Movements

INDUSTRIAL TRANSPORTATION

Performance of SR Oil and Gas Index Open 1,422.45 Turnover 9,326,939 P/E (x) 9.35

KSE 30 Index

PE

Open

5.64 90.15 7.52 90.79 9.80 70.50 6.45 26.53 3.69 8.50 - 150.00 5.94 58.00

High

High Low 966.99 913.55 Total cos Defaulter cos 9 P/BV (x) ROE (%) 1.35 22.31 Low

Close Chg

92.00 87.00 92.00 1.85 91.95 87.00 90.79 0.00 71.98 67.00 68.63 -1.87 27.85 25.21 27.85 1.32 9.50 8.50 9.00 0.50 153.00 152.00 152.02 2.02 60.88 58.00 60.87 2.87

Close 948.12 Listed cap 3,904.20 mn Payout (%) 44.54

Volume 7917 165 1513 2479 25738 1600 3820

Change 3.92 Market cap 30,866.57 mn Div Yield (%) 7.35

Last 60 days High Low 97.80 98.73 79.99 33.45 10.70 155.00 62.80

87.00 87.00 67.00 25.21 8.50 142.50 54.00

2010 Div BR (%) (%) 50 40 25 100 30

% Change 0.42 5-Day High 983.01 5-Day Low 944.20 2011 Div BR (%) (%)

20B 12.50 15B 10B -

-

259.31

SAIF closed down -1.00 at 5.00. Volume was 1,920 per cent above average (trending) and Bollinger Bands were 40 per cent wider than normal. The company's profit after taxation stood at Rs566.164 million which translates into an Earning Per Share of Rs21.44 for the nine months of fiscal year (9MFY11).

SAIF is currently 25.6 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 very strong flows of volume out of SAIF (bearish). Trend forecasting oscillators are currently bearish on SAIF. Momentum oscillator is currently indicating that SAIF is currently in an oversold condition.

JS Bank Limited

Fundamental Highlights As on Dec 31, 2010

Technical Analysis RSI (14-day)

27.24

Total Assets (Rs in mn)

39,383.65

MA (10-day)

2.12

Total Equity (Rs in mn)

5,821.61

MA (100-day)

2.48

Revenue (Rs in mn)

3,632.74

MA (200-day)

2.57

Interest Expense

1st Support

1.51

Loss after Taxation

2nd Support

1.16

EPS 10 (Rs)

1st Resistance

2.20

0.00 (407.48) (0.50)

Book value / share (Rs)

2nd Resistance

2.54

PE 11 E (x)

Pivot

1.85

PBV (x)

7.14 37.50 0.26

JSBL closed unchanged at 1.89. Volume was 154 per cent above average (trending) and Bollinger Bands were 2 per cent narrower than normal. The company's profit after taxation stood at Rs10.254 million which translates into an Earning Per Share of Rs0.0126 for the 1st quarter of current calendar year (1QCY11).

JSBL is currently 26.4 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 moderate flows of volume out of JSBL (mildly bearish). Trend forecasting oscillators are currently bearish on JSBL. Momentum oscillator is currently indicating that JSBL is currently in an oversold condition.

BOOK CLOSURES Company

From

To

(TFC) Saudi Pak Leasing (TFC) Allied Bank 2nd Issue Allied Bank (TFC) Pakarab Fertilizers Hum Network # Nishat Chunian Power # Meezan Bank Mehran Sugar Mills Security Papers United Bank First Habib Modaraba Fauji Fertilizer MCB Bank Fauji Fertlizer Bin Qasin

10-Aug 13-Aug 15-Aug 15-Aug 16-Aug 16-Aug 17-Aug 17-Aug 17-Aug 22-Aug 25-Aug 29-Aug 02-Sep 13-Sep

26-Aug 21-Aug 27-Aug 22-Aug 22-Aug 25-Aug 23-Aug 25-Aug 30-Aug 31-Aug 04-Sep 09-Sep 19-Sep

D/B/R 25(I) 10(I) 7.5(III) 50(F) 15(I) 22 47.5(II) 30(III) 22.5(II)

Spot AGM/Date -

22-Aug 22-Aug 25-Aug 29-Aug -

INDICATIONS # Extraordinary General Meeting

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

Open 1.75 103.21 124.45 39.78 90 29.9 1.7 30.15 1.61 17.41

High 1.94 108.37 121 39.77 89.9 28.5 1.9 30 1.75 17

Low Close 1.67 100 118.25 39.76 87 28.5 1.61 28.65 1.45 16.41

1.89 107 121 39.76 89.9 28.5 1.76 28.68 1.72 16.44

Change 0.14 3.79 -3.45 -0.02 -0.1 -1.4 0.06 -1.47 0.11 -0.97

Vol 2121440 26515 1764 11695 500 500 170416 1915 570445 696712

7

Tuesday, August 9, 2011 Ask Gen Insurance

FIXED LINE TELECOMMUNICATION

Atlas Insurance

Performance of SR Fixed Line Telecommunication Index Open 679.77 Turnover 7,995,330 P/E (x) 3.22 Paid up Cap(mn)

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

PE

78 27.88 37740 8.66 3000 2.19 8606 6175 -

Open

High Low 715.46 644.39 Total cos Defaulter cos 5 P/BV (x) ROE (%) 0.41 12.84

High

29.57 10.57 1.20 1.41 1.26

Low

29.00 11.09 1.30 1.55 1.79

Close Chg

29.00 10.05 1.15 1.26 1.30

29.00 10.57 1.29 1.53 1.75

Close 684.86 Listed cap 50,077.79 mn Payout (%) 62.56

Volume

-0.57 0.00 0.09 0.12 0.49

200 7309252 192902 492976 1275892

Last 60 days High Low 36.70 17.70 1.94 2.50 2.97

Century Insurance

Change 5.09 Market cap 42,902.79 mn Div Yield (%) 19.40

27.75 10.05 1.15 1.20 1.07

% Change 0.75 5-Day High 787.93 5-Day Low 679.77

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

2011 Div BR (%) (%)

- 15.00 -

EFU General Insurance

280

3.12

8.00

8.35

8.35

8.35 0.35

443

3.57

28.65

28.99

27.80

457

4.25

7.60

7.65

7.65

1250 11.44

30.57

31.00

29.05

Paid up Cap(mn)

Company

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

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

Close 1,339.80 Listed cap 95,369.29 mn Payout (%) 104.13

Change 21.57 Market cap 108,420.25 mn Div Yield (%) 8.34

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

7.83 5.29 2.09 5.34 2.34 2.08 5.12 -

6.47 0.45 38.24 1.00 1.56 17.00 2.69 42.49 12.79 14.27 18.31 1.10 0.73

7.40 0.48 39.00 1.10 1.86 17.99 2.70 42.50 13.40 14.79 18.65 1.25 0.75

5.60 0.35 37.25 0.92 1.60 17.25 2.50 41.25 12.10 13.76 17.70 1.00 0.65

5.90 -0.57 0.46 0.01 38.98 0.74 1.07 0.07 1.81 0.25 17.50 0.50 2.70 0.01 41.63 -0.86 13.01 0.22 14.58 0.31 18.50 0.19 1.14 0.04 0.75 0.02

599 8506 1701126 124702 1165354 5056 34500 279040 460771 550943 7500 122025 11250

9.40 0.75 40.00 1.49 2.57 18.20 4.09 44.19 17.25 17.70 22.50 1.69 1.27

5.60 0.16 36.70 0.92 1.34 15.60 2.35 41.25 12.10 13.76 17.11 1.00 0.36

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

7.8R -

-

Open 1,187.38 Turnover 674,040 P/E (x) 7.33 Paid up Cap(mn)

Company Sui North Gas Sui South Gas

PE

5491 12.71 8390 4.30

Open

High

18.02 19.45

17.80 19.54

High Low 1,183.15 1,125.54 Total cos Defaulter cos 2 P/BV (x) ROE (%) 0.84 11.41 Low 17.02 18.50

Close Chg

Close 1,166.84 Listed cap 12,202.80 mn Payout (%) 66.79

Volume

17.79 -0.23 19.03 -0.42

448026 226014

Change -20.54 Market cap 25,734.15 mn Div Yield (%) 9.11

Last 60 days High Low 23.60 23.75

17.02 18.50

% Change -1.73 5-Day High 1,248.82 5-Day Low 1,166.84

2010 Div BR (%) (%) 20 15

2011 Div BR (%) (%)

25B

-

-

Open 1,019.98 Turnover 20,785,123 P/E (x) 6.48 Paid up Cap(mn)

Company

PE

Open

Allied Bank Ltd.SPOT 8603 5.17 60.27 Askari Bank XB 7070 4.35 9.81 Bank Alfalah 13492 3.61 9.55 Bank AL-Habib 8786 5.88 28.00 Bank Of Khyber 5004 1.83 3.99 Bank Of Punjab 5288 5.34 BankIslami Pak 5280 8.78 3.28 Faysal Bank 7327 4.42 9.02 Habib Bank Ltd 11021 7.31 117.51 Habib Metropolitan Bank XB 10478 5.02 17.24 JS Bank Ltd 8150 37.80 1.89 KASB Bank Ltd XR 9509 1.22 MCB Bank Ltd 8362 6.91 175.18 Meezan Bank XB 8030 5.59 18.58 National Bank 16818 3.64 46.76 Network Mic Bank 300 3.20 NIB Bank 40437 1.29 Samba Bank 14335 20.63 1.51 Silkbank Ltd 26716 13.00 1.95 Soneri Bank 8026 2.00 4.24 Stand Chart Bank 38716 6.36 7.70 Summit Bank Ltd 8701 2.85 United Bank Ltd 12242 5.05 55.15

High

Low

Close Chg

Volume

63.00 59.02 61.32 1.05 9.80 9.26 9.56 -0.25 10.40 9.30 10.18 0.63 28.30 27.50 27.77 -0.23 4.49 3.50 4.10 0.11 5.80 5.12 5.66 0.32 3.91 3.08 3.25 -0.03 9.55 8.60 9.55 0.53 117.45 115.03 116.99 -0.52 17.80 16.33 17.46 0.22 2.19 1.50 1.89 0.00 1.22 1.10 1.20 -0.02 178.44 166.51 174.76 -0.42 19.25 18.01 19.23 0.65 46.74 44.43 46.31 -0.45 2.20 2.20 2.20 -1.00 1.38 1.28 1.35 0.06 1.68 1.64 1.65 0.14 2.48 1.72 2.08 0.13 4.45 3.65 4.00 -0.24 7.90 7.10 7.89 0.19 3.00 2.75 2.87 0.02 57.00 54.00 56.59 1.44

Change 5.84 Market cap 619,819.99 mn Div Yield (%) 6.25

Last 60 days High Low

139307 68.99 771243 12.35 2792556 10.96 139967 29.75 21947 5.82 2237408 7.35 68995 4.09 164245 10.73 218914 122.99 50705 22.45 270445 3.00 112931 1.77 1131677 210.95 77214 19.84 6978980 55.80 10000 3.50 863361 1.89 18000 2.18 1598110 3.06 2324720 6.69 1007 9.20 107384 4.75 793391 65.01

59.02 9.26 9.15 27.40 3.50 5.00 3.08 8.60 114.10 16.33 1.50 1.10 166.51 16.60 44.43 1.65 1.25 1.50 1.72 3.65 7.10 2.67 54.00

% Change 0.57 5-Day High 1,095.18 5-Day Low 1,019.98

2010 Div BR (%) (%)

NON LIFE INSURANCE Performance of SR Non Life Insurance Index Open 647.15 Turnover 519,435 P/E (x) 8.97 Paid up Cap(mn)

Company

Adamjee Insurance XD

1237

High Low 647.68 623.51 Total cos Defaulter cos 34 22 P/BV (x) ROE (%) 0.47 5.20

Close 644.64 Listed cap 11,111.34 mn Payout (%) 79.54

Change -2.51 Market cap 42,033.71 mn Div Yield (%) 8.87

PE

Open

High

Low

Close Chg

Volume

Last 60 days High Low

5.28

50.05

49.75

47.56

49.17 -0.88

59905

69.90

47.56

% Change -0.39 5-Day High 684.57 5-Day Low 644.64

2010 Div BR (%) (%) 25

2011 Div BR (%) (%)

-

-

-

40

20B

-

-

7.00

10

-

-

-

39.65

29.05

12.5

-

-

-

-

-

55B 10.00

-

3000

11.89

10.00

25 12.5B

IGI Insurance

970

5.96

72.00

72.00

70.52

72.00 0.00

26435

76.12

67.00

30

378618

30

Pak Reinsurance

-

3000

4.69

13.57

13.80

12.61

13.51 -0.06

18.30

12.61

-

-

-

284

5.49

8.99

9.00

9.00

9.00 0.01

5482

9.50

6.50

- 12.5B

-

-

United Insurance

496

1.56

4.50

4.50

4.50

4.50 0.00

620

6.00

4.15

-

-

-

24B

UPTO 100 VOLUME

-

Reliance Insurance

LIFE INSURANCE

Symbols

Open

FANM

4

High Low 919.79 865.03 Total cos Defaulter cos 4 P/BV (x) ROE (%) 3.34 3.85

Change -0.93 Market cap 9,804.70 mn Div Yield (%) 4.09

Paid up Cap(mn)

PE

EFU Life Assurance

850

9.14

65.19

68.44

61.96

65.08 -0.11

1964

73.25

57.35

50

-

-

-

New Jub Life Insurance

627 14.69

54.66

56.40

56.40

54.66 0.00

200

58.99

48.00

15

-

-

-

Company

Open

High

Low

Close Chg

Last 60 days High Low

% Change -0.11 5-Day High 913.28 5-Day Low 882.27

Volume

2010 Div BR (%) (%)

2011 Div BR (%) (%)

FINANCIAL SERVICES

Paid up Cap(mn)

Company

Arif Habib Investments

PE

360

5.00

Open

100

0

100

51.42

0

99

SIEM

86

936.21

911

911

911

-25.21

MOON

7

6.05

6

7

0

75

TRPOL

0.88

0.41

0.88

0

75

MODAM

0.65

1

1

0.65

0

50

54

51.3

51.3

54

0

50

3967.76

4034

3901

3997.14

29.38

33

8.8

9.46

0

0.61

1.4

0

11

5.8

5.19

4.9

0

10

1.69

1.69

1.49

0

10

52.01

52.2

0

8

MRNS

52.2

52.52

25

CHCC

8.1

8.9

8.2

8.1

0

7

PMPK

143.99

146

146

143.99

0

5

AMZV

0.38

0.39

0.33

0.38

0

4

CJPL

1.18

1.27

0.22

1.1472

-0.0328

4

BROT

0.25

0.48

0.48

0.25

0

3

RMPL

2701.68

2700

2605

2701.68

0

3

NJICL

58.69

56

56

1.5

58.69

0

2

CWSM

1.3

0.31

1.3

0

2

SJTM

1.05

0.9

0.11

1.05

0

2

ZTL

2.5

2.75

2.01

2.5

0

2

2.07

2.5

2.02

2.07

0

2

2011 Div BR (%) (%)

2010 Div BR (%) (%)

3.5

3

2.55

3.5

GAIL

3.32

3.45

3.1

3.32

0

2

ATFF

6.15

7.15

7.15

6.15

0

1

FDMF

2.23

2.37

2.37

2.23

0

0

1

2

TSMF

1

1.38

1.38

1

0

1

SPLC

0.79

1.64

0

1

-

20B

1.64

0.79

14.32

14.43 -0.89

91044

20.20

14.00

-

20B

-

-

SIBL

1.25

1.2

1.2

1.25

0

1

23.98 -0.03

3272913

29.24

20.77

30

-

-

-

TRIBL

1.01

1.58

1.58

1.01

0

1

Dawood Equities

250

-

1.20

1.50

0.80

0.80 -0.40

1.80

0.80

-

-

-

-

EWLA

1.4

1.5

1.5

1.4

0

1

-

HAJT

0.5

0.75

0.75

0.5

0

1

JDMT

11.15

10.15

OLTM

441

-

2121

6.11

1.16

1.30

1.10

1.16 0.00

46003

1.99

0.90

-

-

-

-

10.15

11.15

0.43

0.87

0.87

0.43

0

1

600 18.65

6.15

7.15

6.90

6.90 0.75

1501

8.50

6.10

11.5

-

-

-

YOUW

1.11

0.25

0.25

1.11

0

1

0.21

0.39

0.23

0.30 0.09

8067

0.74

0.21

-

-

-

-

LATM

6.05

5.1

5.1

6.05

0

1

HADC

0.51

0.7

0.7

0.51

0

100100

2.43

1.30

-

-

-

1

Invest Bank

2849

Ist Cap Securities

3166

-

2.11

2.38

1.90

2.05 -0.06

45479

3.24

1.76

-

10B

-

-

Ist Dawood Bank

626

0.61

1.35

1.48

1.21

1.35 0.00

303

1.96

1.10

-

-

-

-

7633

-

5.51

5.94

5.02

5.74 0.23

4581366

8.34

5.02

10

-

-

-

Jah Siddiq Co

-

2.20 -0.05

-

KOHS

22.81

1.30

-

DWSM

15.25

503

18.00

0.61

4.9

24.15

2.20

23.15

9.57

1.4

1.49

15.32

2.25

103001

9.46

BGL

24.01

Escorts Bank

19.60 0.10

Last 60 days High Low

Volume

GWLC

3.21

IGI Investment Bank

19.60

Close Chg

Change 4.12 Market cap 11,950.66 mn Div Yield (%) 6.38

DNCC

0.41

3750

Invest and Fin Sec

19.90

Low

Close 237.20 Listed cap 30,336.44 mn Payout (%) 99.56

Vol

0

45

53.99

Arif Habib Corp

450 15.19

19.50

High

High Low 248.77 217.41 Total cos Defaulter cos 41 6 P/BV (x) ROE (%) 0.14 0.91

4.19

Change

4

45

53.99

% Change 1.77 5-Day High 272.82 5-Day Low 233.07

Performance of SR Financial Services Index Open 233.07 Turnover 5,732,989 P/E (x) 11.51

Close

45

51.42

NESTLE

Close 882.27 Listed cap 2,290.72 mn Payout (%) 355.53

4.19

Low

45

CICL

MBF

Open 883.19 Turnover 2,165 P/E (x) 5.24

High

PCAL

LIBM

Performance of SR Life Insurance Index

FUTURE CONTRACTS Symbols

Open

High

Low

Close

Change

Vol

508

-

2.04

2.20

1.95

2.17 0.13

81261

3.38

1.91

-

-

POL-AUG

338.88

349.02

325

348.05

4.92

18.05

17.90

17.10

17.11 -0.94

1301

22.94

17.10

50

-

-

-

ENGRO-AUG 130.36

131.5

123.85

130.58

0.22

836500

4.00

4.15

3.77

4.14 0.14

78968

6.43

3.70

-

-

-

-

47

44.87

46.76

-0.47

790500

40.32

-1.15

698500

1000

-

1

500

KASB Securities

-

0

1000 34.50

JS Investment

NBP-AUG

47.23

NML-AUG FFBL-AUG

45.4

46.45

44.21

46.26

0.86

688000

4.96

4.00

4.46 -0.54

256067

6.45

4.00

-

-

-

-

ATRL-AUG

113.42

112.75

107.75

111.64

-1.78

466000

1.25

1.02

1.11 -0.03

314467

1.99

1.02

-

-

-

-

DGKC-AUG

21.04

21.49

20.12

21

-0.04

394000

MCB-AUG

176.63

178.99

168.36

176.07

-0.56

266000

3.00

2.99

3.00 0.00

4.79

3500

2.56

3.00

-

1.50

-

-

-

39.4

-

5.00 1.14 3.00

20051

40.9

2.98 -0.08

2.70 3.96 -

3.00

41.47

2.75

821 775 363

3.06

927500

Orix Leasing

Security Leasing

-

9.17

Pervez Ahmed Sec

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 -

26.00

8.85

11155

11.00 0.40

JS Global Cap

High Low Close 1,046.70 977.38 1,025.83 Total cos Defaulter cos Listed cap 27 - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 0.90 13.94 40.49

29.68

2500

10.97

JOV and CO

BANKS Performance of SR Banks Index

31119

7.65 0.05 30.65 0.08

11.00

Arif Habib Limited

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

28.72 0.07

10.60

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

-10B 25R

7.64

-

% Change 1.64 5-Day High 1,383.47 5-Day Low 1,318.24

8.00

450

Performance of SR Electricity Index High Low 1,354.07 1,282.83 Total cos Defaulter cos 15 1 P/BV (x) ROE (%) 1.17 9.35

10.95

Habib Insurance

ELECTRICITY Open 1,318.24 Turnover 4,471,372 P/E (x) 12.49

500

-

-

-

FFC-AUG

153.84

157.9

150.15

157.33

EQUITY INVESTMENT INSTRUMENTS

PPL-AUG

203.53

208.2

197.01

207.88

4.35

237500

LUCK-AUG

71.24

72.89

69.26

72.73

1.49

151000

Performance of SR Equity Investment Instruments Index

PTC-AUG

10.67

11.19

10.3

10.78

0.11

52500

HUBC-AUG

38.45

39.25

39

39.24

0.79

40000

UBLTFC2

87.05

92.35

92.35

87.05

0

1330

95.5693

96.5

96.5

95.5987

0.0294

200

Open 1,428.65 Turnover 795,245 P/E (x) 14.75

High Low 1,487.42 1,390.90 Total cos Defaulter cos 52 11 P/BV (x) ROE (%) 0.33 2.21

Close 1,439.92 Listed cap 29,771.58 mn Payout (%) 104.74

Change 11.27 Market cap 16,870.25 mn Div Yield (%) 11.04

Paid up Cap(mn)

PE

Open

High

Low

Close Chg

264

-

1.30

1.50

1.05

1.50 0.20

95500

2.00

1.05

-

-

-

-

B R R Guardian Modaraba780

2.60

2.50

2.50

2.05

2.50 0.00

3002

2.90

1.41

0

-

-

-

Constellation Modaraba

2.66

1.27

1.50

1.25

1.25 -0.02

2001

1.99

1.20

-

-

-

-

Company 1st Fid Leasing

Elite Cap Modaraba

65 113

5.07

2.85

3.70

2.20

3.65 0.80

Last 60 days High Low

% Change 0.79 5-Day High 1,530.61 5-Day Low 1,428.65

Volume

10069

3.89

2010 Div BR (%) (%)

2.10

5

-

2011 Div BR (%) (%)

-

-

Equity Modaraba

524

5.32

1.00

1.30

0.91

1.01 0.01

21855

1.90

0.91

-

-

-

-

Golden Arrow

760

2.02

2.90

3.20

3.00

3.05 0.15

112850

3.72

2.84

17

-

-

-

H B L Modaraba

397

3.43

7.00

7.00

6.80

7.00 0.00

28850

8.44

6.80

11

-

-

-

Habib Modaraba

1008

5.82

8.00

8.40

7.80

8.03 0.03

22151

8.50

7.32

21

-

22

-

JS Growth Fund

3180

1.84

5.60

5.59

5.20

5.35 -0.25

1031

7.30

5.20

12.5

-

-

-

JS Value Fund

1186

0.49

4.67

4.99

4.36

4.67 0.00

199

6.10

4.36

10

-

5.00

-

PICIC Energy Fund

1000

1.95

6.50

7.00

6.50

6.62 0.12

4057

8.25

6.50

10

- 10.00

-

PICIC Growth Fund

2835

2.47

11.44

12.44

11.01

12.05 0.61

410744

13.84

11.01

20

- 12.50

-

PICIC Inv Fund

2841

2.08

4.96

5.39

4.75

5.25 0.29

79354

6.95

4.75

10

-

7.50

-

340

-

1.00

1.05

0.53

0.53 -0.47

3404

1.50

0.26

1

-

-

-

Punjab Modaraba

PMTFC6

3.49

258000

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 715,457 1,506 289,332 179,850 58,100 920,000 473,243 110,483 139,750 49,700 120,000 14,375 1,620,271 2,500 59,520 663,902 500 28,500 336,599 6,600 200,260 6,000 5,250 42,780 28,430 107,500 6,180,408

Total Value 13,057,778 57,586 2,164,692 625,928 4,899,881 6,665,331 7,457,391 10,808,876 4,709,418 5,790,100 3,453,063 465,475 13,138,491 133,262 7,790,298 23,496,581 6,399 361,556 10,434,013 722,944 2,061,332 1,553,064 811,700 7,076,451 228,074 4,552,663 132,522,350

MTS Rate 21.09 20.76 20.00 17.09 20.00 19.55 21.19 17.00 17.00 17.59 17.00 17.39 20.00 17.02 20.67 18.00 17.00 17.35 17.70

BOARD MEETINGS

Pakistan Telecommunication Co Ltd

KSE 100 INDEX

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position

22.71

Support 1

11,170.35

MA (5-day)

11,758.69

Support 2

10,936.50

MA (10-day)

11,996.49

Resistance 1

11,538.00

MA (100-day)

12,081.52

Resistance 2

11,671.80

Arif Habib Ltd

Target Price

Recommendations

21.1

Buy

Arif Habib Ltd

23.91

Buy

AKD Securities Ltd

AKD Securities Ltd TFD Research

20.15

Positive

Leverage Position

RSI (14-day) 11.33 MTS Shares `000 28.43 MA (200-day) 11,898.71 Pivot 11,304.15 MA (10-day) 11.98 MTS Rs `000 228.07 15.57 MTS Rate KSE 100 INDEX closed up 29.08 points at 11,404.17. Volume was MA (100-day) 17.25 ** NOI Rs (mn) 2.79 78 per cent above average (neutral) and Bollinger Bands were 148 MA (200-day) Free Float Shares (mn) 585.08 Free Float Rs (mn) 6,184.27 per cent wider than normal. As far as resistance level is concern, the market will see major 1st resistance level at 11,538.00 and 2nd Target price for Dec-11 & **Net Open Interest in future market resistance level at 11,671.80, while Index will continue to find its 1st support level at 11,170.35 and 2nd support level at 10,936.50.

KSE 100 INDEX is currently 4.2 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 (neutral). Trend forecasting oscillators are currently bearish on INDEX. Momentum oscillator is currently indicating that INDEX is currently in an oversold condition.

Target Price

Recommendations

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

23.35 51.73 53.34 63.04 Free Float Shares (mn) 398.27

Engro Corporation

663.902 23,496.58 17.39 89.34 18,444.05

Buy

Technical Analysis

Leverage Position

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

15.86 MTS Shares `000 336.599 45.92 MTS Rs `000 10,434.01 57.15 MTS Rate 17.02 59.42 ** NOI Rs (mn) 50.93 Free Float Shares (mn) 175.80 Free Float Rs (mn) 7,049.58 Target price for Dec-11 & **Net Open Interest in future market

Brokerage House

Target Price

Recommendations

Brokerage House

Arif Habib Ltd

224

Buy

Arif Habib Ltd

AKD Securities Ltd

195.41

Buy

AKD Securities Ltd

Neutral

TFD Research

245.95

Positive

Technical Analysis

Leverage Position

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

14.57 MTS Shares `000 110.483 139.40 MTS Rs `000 10,808.88 180.66 MTS Rate 21.19 190.47 ** NOI Rs (mn) 184.05 Free Float Shares (mn) 176.98 Free Float Rs (mn) 23,023.05 Target price for Dec-11 & **Net Open Interest in future market

Brokerage House

Target Price

Recommendations

12.2

Buy

Arif Habib Ltd

Accumulate

AKD Securities Ltd

11.75

Target Price

Buy Buy

Technical Analysis

Leverage Position

50.18 MTS Shares `000 920.00 10.15 MTS Rs `000 6,665.33 10.24 MTS Rate 20.00 10.30 ** NOI Rs (mn) N/A Free Float Shares (mn) 674.58 Free Float Rs (mn) 6,867.21 Target price for Dec-11 & **Net Open Interest in future market

30.6

Positive

Technical Outlook

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

Recommendations

29 28.72

TFD Research

Technical Outlook

Technical Outlook

Dera Ghazi Khan Cement Co Ltd

Bank Al-Falah Ltd

Hold

Leverage Position

Recommendations

tors reflect moderate flows of volume out of PTC (mildly bearish). Trend volume flowing into and out of NBP at a relatively equal pace (neutral). Trend strong flows of volume out of NML (bearish). Trend forecasting oscillators forecasting oscillators are currently bearish on PTC. Momentum oscillator forecasting oscillators are currently bearish on NBP. Momentum oscillator is are currently bearish on NML. Momentum oscillator is currently indicating that NML is currently in an oversold condition. currently indicating that NBP is currently in an oversold condition. is currently indicating that PTC is currently in an oversold condition.

Neutral

53.94 MTS Shares `000 139.75 46.45 MTS Rs `000 4,709.42 42.92 MTS Rate 17.00 40.23 ** NOI Rs (mn) 39.68 Free Float Shares (mn) 326.94 Free Float Rs (mn) 15,065.33 Target price for Dec-11 & **Net Open Interest in future market

68.95

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

Leverage Position

25.63 22.22 23.43 25.80

MTS Shares `000 473.243 MTS Rs `000 7,457.39 MTS Rate 19.55 ** NOI Rs (mn) 69.78 Free Float Rs (mn) 5,009.67 Target price for Dec-11 & **Net Open Interest in future market

Free Float Shares (mn) 240.97

FFBL closed up 0.94 at 46.08. Volume was 41 per cent above average ENGRO closed up 0.79 at 130.09. Volume was 65 per cent above average BAFL closed up 0.63 at 10.18. Volume was 70 per cent above average DGKC closed down -0.09 at 20.79. Volume was 16 per cent above average (neutral) and Bollinger Bands were 53 per cent wider than normal.

(neutral) and Bollinger Bands were 2 per cent narrower than normal.

ENGRO is currently 31.7 per cent below its 200-day moving average and is BAFL is currently 1.1 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared to the displaying a downward trend. Volatility is extremely high when compared average volatility over the last 10 trading sessions. Volume indicators reflect to the average volatility over the last 10 trading sessions. Volume indicamoderate flows of volume out of ENGRO (mildly bearish). Trend forecasting reflect volume flowing into and out of FFBL at a relatively equal pace (neu- oscillators are currently bearish on ENGRO. Momentum oscillator is currently tors reflect moderate flows of volume into BAFL (mildly bullish). Trend fore-

(neutral) and Bollinger Bands were 5 per cent narrower than normal.

FFBL is currently 14.5 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

tral). Trend forecasting oscillators are currently bullish on FFBL.

indicating that ENGRO is currently in an oversold condition.

casting oscillators are currently bearish on BAFL.

Date

Time

Golden Arrow Stocks Fund Ltd Pak Petroleum Ltd Pak State Oil Co. Ltd Unilever Pak Ltd Dawood Hercules Chemicals Ltd Pak Cables Ltd ZIL Ltd Singer Pak Ltd International Industries Ltd Unilever Pak Foods Ltd Bank Al Habib Ltd Network Microfinance Bank Ltd Pakgen Power Ltd BOC Pak Ltd Pakgen Power Ltd Philip Morris (Pak) Ltd BOC Pak Ltd Oil & Gas Develop Comp Ltd Engro Corporation Ltd Soneri Bank Ltd

09-Aug 09-Aug 09-Aug 09-Aug 10-Aug 10-Aug 10-Aug 10-Aug 11-Aug 11-Aug 11-Aug 11-Aug 12-Aug 12-Aug 12-Aug 12-Aug 12-Aug 12-Aug 12-Aug 13-Aug

2:00 10:30 10:00 10:30 9:30 10:00 11:00 11:00 10:00 2:30 12:00 11:00 10:00 9:30 10:00 10:00 9:30 9:30 8:30 12:30

TECHNICAL LEVELS

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

Target Price

Technical Outlook

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

47.75

Technical Analysis

Brokerage House AKD Securities Ltd

PTC closed unchanged at 10.57. Volume was 375 per cent above average NBP closed down -0.45 at 46.31. Volume was 322 per cent above average NML closed down -0.98 at 40.10. Volume was 308 per cent above aver(trending) and Bollinger Bands were 20 per cent wider than normal. age (trending) and Bollinger Bands were 120 per cent wider than normal.

PTC is currently 38.7 per cent below its 200-day moving average and is NBP is currently 26.5 per cent below its 200-day moving average and is dis- NML is currently 32.5 per cent below its 200-day moving average and is displaying a downward trend. Volatility is extremely high when compared playing a downward trend. Volatility is extremely high when compared to the displaying a downward trend. Volatility is high as compared to the average to the average volatility over the last 10 trading sessions. Volume indica- average volatility over the last 10 trading sessions. Volume indicators reflect volatility over the last 10 trading sessions. Volume indicators reflect very

45.52

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

Buy Buy

Technical Analysis

TFD Research

49

Recommendations

65 64.99

Technical Outlook

AKD Securities Ltd

Arif Habib Ltd

Target Price

(trending) and Bollinger Bands were 77 per cent wider than normal.

Fauji Fertiliser Bin Qasim Ltd

Brokerage House

Brokerage House

Technical Outlook Technical Analysis

Nishat Mills Ltd

National Bank of Pakistan

Company

(neutral) and Bollinger Bands were 12 per cent wider than normal.

DGKC is currently 19.4 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 DGKC at a relatively equal pace (neutral). Trend forecasting oscillators are currently bearish on DGKC. Momentum oscillator is currently indicating that DGKC is currently in an oversold condition.

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

RSI 1st 2nd (14-day) Support 8.23 47.90 46.65 34.43 1.75 1.45 38.66 59.20 57.15 32.70 23.15 22.30 23.59 14.10 13.75 21.18 9.30 9.00 21.34 40.95 39.85 12.75 319.90 306.35 26.01 107.80 104.80 19.68 4.05 3.55 50.19 9.50 8.85 34.81 5.25 4.85 32.31 2.90 2.60 25.64 20.15 19.55 40.21 1.15 0.90 20.54 1.65 1.45 39.41 1.70 1.35 30.06 29.45 28.30 39.81 61.90 58.70 14.60 124.80 119.55 20.84 3.25 3.05 53.94 44.65 43.25 48.13 152.05 147.30 48.00 8.90 8.30 41.15 115.55 114.05 51.96 37.80 36.65 16.36 132.90 129.75 33.99 198.75 194.55 31.88 2.00 1.85 44.21 5.20 4.65 43.09 0.95 0.85 27.25 1.55 1.15 37.56 1.65 1.50 31.97 41.10 40.55 18.78 10.10 9.45 50.01 70.10 67.85 38.97 1.65 1.45 24.70 168.05 161.30 23.36 44.90 43.50 14.42 16.25 16.05 36.63 1.30 1.25 42.50 2.55 2.35 12.51 15.60 15.50 15.88 39.25 38.40 24.82 132.85 129.50 28.69 1.60 1.45 12.43 209.05 202.90 11.35 10.05 9.55 31.28 1.55 1.35 37.71 331.70 316.60 44.38 199.20 191.45 57.42 64.90 64.45 27.01 1.00 0.90 18.96 3.50 3.30 37.32 199.25 187.40 19.75 13.50 12.90 19.74 17.30 16.75 24.07 18.50 18.00 39.96 1.20 1.10 24.73 1.70 1.55 30.18 54.70 52.85 30.52 1.35 1.15

1st

2nd

Resistance 50.10 51.00 2.45 2.80 63.20 65.10 24.50 25.00 15.00 15.60 9.80 10.10 42.65 43.25 343.40 353.40 112.90 115.00 4.95 5.30 10.60 11.05 5.95 6.20 3.75 4.25 21.35 21.95 1.65 1.90 1.95 2.10 2.20 2.35 31.40 32.20 68.35 71.65 133.40 136.65 3.75 4.00 46.90 47.65 159.55 162.30 9.85 10.20 117.95 118.90 39.55 40.15 140.05 144.15 205.55 208.15 2.25 2.35 6.10 6.50 1.15 1.20 2.20 2.55 1.90 2.00 42.35 43.05 11.10 11.50 73.75 75.25 2.00 2.15 179.95 185.15 47.25 48.15 16.85 17.20 1.40 1.45 2.95 3.10 15.90 16.10 40.75 41.35 138.80 141.35 1.90 2.05 219.45 223.65 11.10 11.60 1.85 1.95 355.45 364.10 211.00 215.05 65.70 66.00 1.25 1.35 3.80 4.00 219.00 226.90 14.60 15.10 18.05 18.30 19.55 20.05 1.35 1.40 2.00 2.10 57.70 58.85 1.65 1.75

Pivot 48.85 2.15 61.10 23.65 14.65 9.55 41.55 329.85 109.90 4.40 9.95 5.55 3.40 20.75 1.40 1.80 1.85 30.25 65.15 128.10 3.55 45.45 154.80 9.25 116.50 38.40 136.95 201.35 2.10 5.55 1.05 1.85 1.75 41.80 10.45 71.55 1.80 173.25 45.85 16.60 1.35 2.70 15.80 39.90 135.45 1.75 213.30 10.55 1.65 340.35 203.25 65.20 1.15 3.65 207.15 14.00 17.55 19.00 1.25 1.85 55.85 1.45

8

Tuesday, August 9, 2011

Pak imports Rs45 billion cells in FY11

BAHAWALPUR: Prime Minster Syed Yousuf Raza Gilani offering Dua after inaugurating Telecom Services in Unserved Rural Areas at Circuit House. -APP

USF Project Inaugurated in Bahawalpur

Govt paying special attention to IT: PM BAHAWALPUR: Prime Minister Syed Yousuf Raza Gilani inaugurated Universal Service Fund's (USF) project aimed at providing basic telecom services in Bahawalpur division's unserved areas.

Prime Minister Gilani said the government was paying special attention to Information Technology (IT) sector.

PM Gilani said that the project will help in education, agriculture and health sectors besides providing a source of communication to the people of this area.

He said that an IT University will be established at Bahawalpur while IT campuses will be set up at Bahawalnagar and Rahim Yar Khan.

He said that skilled youth would be recruited from all over the country in Information Technology sector on the basis of merit. He said that motorway would also be

PTA to improve terrestrial links ISLAMABAD: Pakistan Telecommunication Authority (PTA) is working aggressively to enhance international communication mediums aimed at strengthening terrestrial links with Afghanistan, Central Asia and China to help economy grow with better flow of information in the country.

This was stated by Dr. Mohammed Yaseen, Chairman PTA, at the signing ceremony of Memorandum of Understanding (MoUs) Center for Advance Studies and Engineering (CASE) and Institute of Space Technology (IST).

Member Technical PTA, Dr. Khawar Siddique Khokhar, President CASE Dr. Abdul Khaliq and Vice Chancellor IST, Brig Imran Rehman attended the ceremony held at PTA Headquarters today.

The key objectives of these collaborations are to enhance research integrated activities at various platforms for future leadership with theoretical and practical training in policy and regulatory regime in telecom sector.

Different telecom operators will also benefit from this collaboration as young experts would be conducting research in the relevant fields of telecom with guidance of the respective faculties and national telecom regulator. -Agencies

constructed from Karachi to Bahawalpur which would go to Faisalabad. The Prime Minister said that Chachran Bridge will be constructed to connect Punjab, Sindh and Balochistan provinces.

Prime Minister congratulated the students who completed training course conducted by Pakistan Software Export Board (PSEB).

Prime Minister Gilani inaugurated the project by making call to a remote area of Cholistan. He also gave way certificates to the students who completed training course conducted by Pakistan Software Export Board (PSEB). Federal Minister for Information and Broadcasting Dr Firdous Ashiq Awan and Federal Minister for Professional and Technical Training Mian Riaz Hussain Pirzada were also present at the occasion.

Speaking on the occasion, the Prime Minister said that

USF's project in Bahawalpur manifests the determination of the government to provide basic telecom facilities to remote areas of Pakistan.

He added that when his government took charge in early 2008, there were 888 unserved mauzas in the districts of Bahawalpur, Bahawalnagar and Rahim Yar Khan. Now every village in these districts enjoys basic telecom facilities.

To mark the launch of the USF's telecom services in Bahawalpur, the Prime Minister unveiled a plaque and made a telephone call at the remote village deep in the Cholistan desert. This project was implemented with a cost of Rs. 310 million, out of which USF contributed 248 million. The project will benefit approximately 250,000 people located in the remote areas of Bahawalpur division.

On this occasion, Federal Secretary Information

Technology, Saeed Ahmed Khan, gave a detailed briefing to the Prime Minister about the Rural Telecom, Optic Fiber and Broadband programs undertaken by Universal Service Fund (USF).

He mentioned that Ministry of Information Technology, its affiliated companies and departments are conscious of the skilled man power needs of IT Industry and have started programs for training young IT professionals in advanced IT technologies.

In a statement, CEO OF Telenor- Christian Albech said, "We are proud to have become the only mobile operator to have completed a USF project that comprises a high number of solar-powered sites. We are honored to have provided connectivity to a quarter of a million unserved population of the area, and thus contributed to the socio-economic uplift of the people." -Agencies

NBP Balochistan branches turn online

QUETTA: In a major move towards automation, National Bank of Pakistan has converted all its branches on-line in Balochistan province. This is in line with Bank's strategy to convert majority of its branches on-line by the end of this year for which work is going on at fast pace.

It is worth mentioning here that NBP is present in far off and remote areas of Balochistan which include

Dera Bugti, Awaran, Kohlu, Barkhan, Turbat, Panjgur, Sorab, Qallat, Chaman, Loralai, Ormara, Harnai, Noshki, Dalbandin, Gandawah, Kharan, Saindak, Taftan, Othal, Bela and Muslim Bagh.

NBP has recently initiated a number of IT projects to make the bank one of the most technologically advanced financial institutions in the country.

Currently the Bank is in the

implementation phase of Core Banking System which is one of the largest IT projects in Pakistan and covers all the banking functions.

Qamar Hussain, President NBP, appreciated the efforts of Chief Information Officer, IT Manager Quetta and his team on this landmark achievement and expressed hope that very soon more branches will come online all over the country. -Agencies

ISLAMABAD: Handset import bill of various brands, prices and features has been registered at Rs. 44.69 billion in the outgoing financial year (201011), up from Rs 26.44 billion import bill recorded during the same period previous year, said Federal Bureau of Statistics (FBS) in its latest stats.

FBS report said that the handsets sales and its imports surged substantially depicting the tremendous growth of 70 percent in the closing fiscal year 2010-11 compared with previous year.

The average monthly expense of handsets reached Rs 3.72 billion in FY 11 versus Rs 2.2 billion monthly import bill recorded in FY 10.

Analysts said the handsets growth in sales and imports is natural as the local demand has been growing side by side with increasing SIMs number of different operators. In addition, high priced smartphones are significantly contributing towards the overall value of the import bill.

Customers purchase gadgets with emerging trends, style and technology of the brands. They replace their handsets normally in one to two years depending on brands - whether it is Chinese or others.

Besides, demand and sales of handsets increase coupled by the snatched/theft cases and dysfunctional of gadgets in the local market.

Markets dealers said that sales of handsets have increased more than one million units per month, which stood almost half in the last fiscal year. The sales have picked up at accelerated pace with increasing demand in the local markets, particularly in the rural areas in addition to sales growth in big cities.

More than 80 percent of the handsets imports are carried out from China including Chinese brands and renowned brands. However, Chinesemade handsets gained lion share in the local markets owing to lower prices amid multiple features.-Agencies

Naushad resigns from Telenor ISLAMABAD: In a major and sudden development at Telenor's head quarter, Naushad Javaid Director HR, resigned today - we have confirmed this with our sources in the company.

Reason of Naushad's resignation is unclear so far, however, sources close to him opine that departmental restructuring at Human Capital Division could be a possible reason. The unsettlement since Nayab Baig and Salman Tariq's departure still persist.

It merits mentioning here that in addition to Naushad, Mr. Faham, Manager OD, Umair Akhter, Assistant Manager, competence development and others resigned from their positions just recently.

Naushad is considered as one of the top organizational development resource in the industry while his presence at Telenor since 2006 is considered vital for the performance, skills and the yield of Telenor's workforce. -Agencies

Broadband subscribers hit 1.40mn mark in Pak ISLAMABAD: Broadband subscribers in Pakistan reached 1.40 million mark - compared

Trends show that DSL and EVDO subscribers are growing evenly with WiMAX operators

to 900,000 subscribers, 11 months ago - adding half a million broadband users in last fiscal year, reported Pakistan Telecommunication Authority in it's latest stats.

DSL subscribers rose to 654,707 compared with 476,722 subscribers in June 2010, while the number of WiMAX internet users increased to 397,155 from 257,616 subscribers a year ago.

EVDO subscribers showed highest growth in the outgoing year by taking the subscriber base from 111,194 subscribers a year ago to 294,161 subscribers in May 2011.

catching them up swiftly.

In the outgoing year, EVDO subscribers' share in broadband market grew from 12 percent to 21 percent, while DSL's share went down to 47 % from 53 % during the reported period.

Universal Service Fund played a major role in this year's broadband growth. USF claims that broadband operators this year added 250,000 customers with the help of USF funding. PTCL remains the largest beneficiary by having 50 percent of broadband projects launched by USF. (Courtesy ProPakistani.net

PTA inks MoUs with CASE, IST ISLAMABAD: Pakistan Te l e c o m m u n i c a t i o n Authority (PTA) signed two Memorandums of Understanding (MoUs) with Center for Advance Studies and Engineering (CASE) and Institute of Space Technology (IST) to

promote telecom related research.

Such research would be beneficial for the institutions, the telecom industry as well as for the country, said a press release issued here today.

These MoUs would also boost mutual cooperation in the relevant fields and would enhance the industry academia linkages.

Chairman PTA Dr. Mohammed Yaseen, Member Technical PTA, Dr. Khawar Siddique Khokhar, President CASE Dr. Abdul Khaliq and Vice Chancellor IST, Brig Imran Rehman attended the ceremony held at PTA Headquarters today.

On this occasion, Chairman PTA Dr. Mohammed Yaseen said "Currently Pakistan has state of the art telecom networks while we are working on enhanced international communication links. We are planning to improve terrestrial links with Afghanistan, Central Asia and China which would help economy and flow of information in the country".

PTA would provide data on telecom sector and expertise to CASE and IST, reciprocally the Universities would encourage their students to undertake research in different areas of telecom sector.

He said that under the MoUs, PTA would help

CASE and IST in identification of research areas.

Similarly, CASE and IST would cooperate with PTA on different issues of trade, business and economy related to telecom sector.

President CASE Dr. Abdul Khaliq and Vice Chancellor IST, Brig Imran Rehman, also

spoke on the occasion and emphasized on the need of telecom research in the universities.

They appreciated the fast growth in telecom sector and steps taken by PTA in this regard.

Main objectives of these collaborations are to support research integrated activities and to equip future leadership with theoretical and practical training in policy and regulatory issues of telecom sector.

It is expected that the related organizations would benefit from this collaboration as young experts would be conducting research in the relevant fields of telecom with guidance of the faculty and PTA which could be converted into entrepreneurship.

Industry is working on Venture Capital for entrepreneurship activities.

It may be mentioned that PTA being an academia friendly organization has already signed MoUs with COMSATS, NUST and UET Taxila.

PTA has been working continuously towards encouragement of research activities in telecom sector and taken number of initiatives to establish strong linkages with educational institutions for the promotion of telecom research. -Agencies

9

Tuesday, August 9, 2011

Gold hits record over $1,715/oz as risk persists LONDON: Gold vaulted above $1,700 an ounce for the first time on Monday after pledges by the G7 and the European Central Bank to quell the turbulence in the financial markets did nothing to put investors at ease.

Traders said the ECB had made good on its promise to tackle the euro-zone debt crisis by widening its bond-buying programme to include paper from Spain and Italy but the move was not enough to allay deep concerns.

Friday's downgrade to the quality of US sovereign debt by ratings agency Standard & Poor's had been widely anticipated, but its longer-term impact on anything from mortgage rates to the economy was unclear.

Spot gold was set for a second consecutive daily trading rally, up 2 per cent from Friday at $1,696.56 an ounce by 1342 GMT, having hit a record $1,715.01 earlier and having traded at all-time highs in sterling and euros.

Investors have bought more gold in the last month than in the prior six months, judging from the increase in open interest on COMEX for speculators and money managers, as well as inflows into exchangetraded products.

This corresponds to around 30 per cent of total identifiable investment demand in 2010, and compares with about 8.4 million ounces in the year to early July.

"There has been a huge buildup in speculative and long positions across the board over the last couple of weeks, but I suppose that central banks buying more bonds is not helping the overall worry about how the economies are going to do over the months ahead," he said.

Finance chiefs from the world's industrial powers pledged on Sunday to take whatever actions were needed to steady financial markets, spooked by the political wrangling in Europe and the United States over slashing their huge budget deficits.

Investors will be watching Tuesday's meeting of the US Federal Open Market Committee for any statement on whether the Fed will ease monetary policy further.

The Fed's $600 billion quantitative easing programme, which ended in June this year, has been instrumental in gold's rise, even if adjusted for inflation,

the bullion price remains well below the all-time highs above $2,000 in the early 1980s.

The prospect of an even longer period of low US interest rates prompted Goldman Sachs to raise its longer-term forecast for the gold price. Goldman said it had lifted its forecasts to $1,645, $1,730 and $1,860 on a three-, six- and 12-month horizon. Goldman had previously forecast the gold price peaking at $1,600 an ounce in mid-2012.

Meanwhile, gold in euros hit a record 1,199.89 euros an ounce, bringing gains in the last month alone to over 12 per cent, while gold in sterling hit a peak of 1,043.76 pounds, for a gain of 9.3 per cent in the same period.

In other precious metals, silver got a lift from the strength in gold as it can sometimes act as a cheaper safe-haven proxy for investors.

Spot silver was last up 2.6 per cent on the day at $39.30 an ounce, while platinum rose 0.3 per cent to $1,717.49 an ounce.

The ratio of gold to platinum earlier fell to around parity for the first time since late 2008.

Palladium was last down 1.25 per cent at $730.47. The palladium price has fallen by more than 14 per cent in the last 6 trading days, since hitting a five-month high. -Reuters

Industrial metals fall as growth concerns intensify LONDON: Industrial metals fell sharply on Monday in a selloff in risky assets after a downgrade to the credit rating of the United States intensified fears of a global economic slowdown which could hurt demand for metals.

Benchmark three-month copper on the London Metal Exchange slipped to its lowest in 11 weeks at $8,750 before closing at $8,770 from $9,040 on Friday.

Other industrial metals also fell sharply on growing jitters the slow down in the global economy could turn into a prolonged recession, with zinc and nickel falling to their lowest levels since late November 2010 and tin hitting its lowest since September 2010.

Unease about the US debt rating cut by ratings agency Standard and Poor's sent world stocks tumbling towards 11month lows on Monday, overshadowing relief that the European Central Bank was buying bonds of strugglers Italy and Spain in a bid to prevent the euro-zone debt crisis from spreading. Stock markets in the United States fell sharply while the dollar rose against a basket of currencies, making base metals expensive for holders of other currencies.

Volumes of three-month copper on the LME came close to Friday's level which was the

highest for the year so far, suggesting that its correction continues to lure buying interest. More than 35,000 lots had traded by late afternoon, compared with more than 39,000 lots on Friday.

Some analysts, like Goldman Sachs, are reiterating copper's value at current levels, given its allure as a hard asset during times of monetary expansion, and also its exposure to emerging market growth.

Shanghai copper closes down The most-active October copper contract on the Shanghai Futures Exchange opened down 1.6 per cent at 67,460 yuan, catching up with London's previous losses. It fell 2.8 per cent at one point to 66,630 yuan, also its lowest since June 27, before paring losses to close 1.3 per cent lower at 67,680 yuan.

Others said that given questions over global economic growth and the industrial slowdown in the northern hemisphere summer, prices may be entering a protracted soft patch.

"I fancy copper and other base metals to weaken over the next month, but don't see a repeat of the H2 2008 collapse," analyst David Thurtell of Citi said.

Copper tumbled by 7.9 per cent last week, in its largest weekly fall since June 2010,

bringing losses for the year-todate to more than 8 per cent.

Technical analysts at Charles Stanley said charts suggest support for the metal at around $8,700, the bottom-end of a range that has been in place since December 2010, which if fails to hold, could accelerate falls. The LME-Shanghai Futures Exchange price differential reached its most favourable levels since August last year.

China is the world's biggest consumer of metals, accounting for around 40 per cent of refined copper consumption in 2010.

Aluminium fell to $2,386 from $2,400 at Friday's close, which was its lowest since late January.

Aluminium has been underpinned by expectations power cuts in China will crimp domestic supply and it may have to come back to the international market. Tin plunged 8 per cent to $22,400, its lowest since September 2010, before later cutting losses to close at $22,505 from $24,350.

At the start of the year, tin's tight fundamentals suggested it would be a star performer this year, and attracted speculative inflow that is now being forced out.

LME zinc closed at $2,091 from $2,200 at Friday's close.

Battery material lead slipped to $2,205 from $2,360, and nickel was at $21,250 from $22,505.Reuters

Oil drops 3 per cent after US downgrade Merrill Lynch says WTI may dip to $50 if recession comes NEW YORK: Oil dropped 3 per cent on Monday, crashing through technical support levels as the reduction of the United States's top-tier credit rating by Standard & Poor's hammered markets and stoked concerns of an economic slowdown.

Brent crude broke through the 200-day moving average after shedding nearly $10 dollars so far in August, as the downgrade sent world stocks to the lowest level in nearly a year.

The move by S&P added to concerns about demand in the world's top oil consumer, which has seen gasoline use fall against year-ago levels in the midst of the summer driving season when demand usually peaks.

"In the tumultuous aftermath of the US downgrade from S&P, the world also is downgrading the oil market," said Phil Flynn, analyst at PFGBest Research in Chicago.

Brent crude fell $3.20 to $106.17 a barrel by 1538 GMT, after earlier falling as

low as $105.43 a barrel. Brent broke through the 200-day moving average of $106.89 a barrel, after pushing through the key technical level during intraday activity on Friday before settling higher.

US crude fell $3.25 to $83.63 after sliding to its lowest intraday level since November at

$82.52 a barrel in early trade.

US oil dropped further below 30 on the 14-day relative strength index, which is often interpreted as a sign a commodity has been oversold, while Brent crude again tested the 30 level.

While analysts warned oil prices could fall further still if a second recession takes hold, both Merrill Lynch and Goldman Sachs maintained their 2012 price forecasts. "We believe that WTI crude oil prices could briefly drop to $50 under a recession scenario," Merrill Lynch said in a note, but it maintained its 2012 average forecast for US crude at $102 a barrel and its forecast for Brent next year at $114. -Reuters

ICE sugar, coffee dip on economic worries LONDON: ICE sugar tumbled almost 4 per cent on Monday, while coffee also fell, as most commodity markets were lower on fears of a prolonged global economic slowdown after ratings agency Standard & Poor's cut its US rating.

Cocoa extended losses as a record 2010/11 surplus weighed.

Raw sugar futures dipped as oil traded lower and world stocks extended losses on growing worries of a doubledip recession.

ICE sugar futures traded around 14 per cent off the contract high of 31.68 cents a lb touched last month.

October raw sugar on ICE was down 0.89 cent or 3.2 per cent at 26.65 cents a lb at 1424 GMT. October white sugar on Liffe fell $19.30 or 2.6 per cent to $710.80 per tonne.

Arabica coffee futures on ICE were also lower, unable to escape risk-averse investor sentiment which weighed on the commodities complex.

December arabica coffee on ICE fell 5.9 cent or 2.4 per cent to $2.3600 per lb.

November robusta coffee on Liffe traded down $31 or 1.5 per cent to $2,064 per tonne.

Cocoa futures on ICE eased, consolidating above the nineweek low hit on Friday, as the record 2010/11 surplus kept prices under downward pressure.

December cocoa on ICE was down $45 or 1.5 per cent at $2,930 a tonne after touching $2,908 a tonne last week, its lowest level since June 17.

High prices encouraged a surprisingly high level of crop husbandry, which combined with ideal weather to produce a bumper 2010/11 West African crop. "Near-term prices will be capped by a larger West African harvest," Standard Chartered said in a commodities note.

Cocoa arrivals at ports in top grower Ivory Coast reached around 1,382,000 tonnes by Aug. 7, exporters estimated on Monday, compared with 1,108,560 tonnes in the same period of the previous season. Reuters

Tokyo rubber hits 3-wk low BANGKOK: Tokyo rubber futures fell to a three-week low on Monday, tracking falling oil prices and stocks, which were hit by a US credit rating downgrade and the debt crisis in Europe, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange for January delivery fell 8.9 yen, or 2.3 per cent, to settle at 370.5 yen ($4.72) per kg.

It fell to an intra-day low of 370.2 yen, the lowest since July 14.

The most active rubber contract on the Shanghai rubber exchange for January delivery fell 15 yuan to finish at 33,690 yuan ($5,231) per tonne. Crude fell $3 a barrel on Monday after ratings agency Standard & Poor's downgraded the United States' top-tier credit rating, stirring concern over the outlook for demand in the world's biggest oil consumer. -Reuters

HYDERABAD: An Indian goldsmith checks jewelry after making it in Hyderabad. -Reuters

Palm oil hits lowest since Oct after US downgrade

Indian sugar drops tailing weak global mkts

oil based on its wave pattern and a channel technique.

Bursa Malaysia raised margin requirements for palm oil trading, dealers said on Monday, in what could be a pre-emptive move against a possible rout in Asian markets in light of the Western debt crisis and ahead of long holidays in September.

"The exchange could be raising its margin requirements ahead of the Eid al-Fitr festival in early September to deter excessive market swings and risk taking," said a trader with a local commodities brokerage.

Palm oil is still holding up better than other commodities thanks to robust demand.

Also, industry regulator Malaysian Palm Oil Board is likely to show palm oil stocks easing from an 18-month high in July, as demand last month outpaced weaker production.

US soybeans slid to a onemonth low, weighing on other vegetable oil markets. The falls were muted as investors eyed a key government report later this week that will shed light on US corn and soybean crops after heat stress last month.

US soyoil for August delivery dropped 0.9 per cent in Asian trade. The most active May 2012 soyoil contract on China's Dalian exchange ended 0.1 per cent. -Reuters

MUMBAI: India's sugar extended last week's losses on Monday tracking a sharp drop in the overseas market and on higher supplies of non-levy sugar for August, dealers and analysts said.

New York sugar tumbled almost 4 per cent on Monday, as most commodity markets were lower on fears of a prolonged global economic slowdown, after ratings agency Standard & Poor's cut its US rating late on Friday to AA-plus from AAA. The most active August sugar on the National Commodity and Derivatives Exchange ended 0.91 per cent lower at 2,613 rupees per 100 kg.

In Kolhapur, a key market in top producer Maharashtra, the most traded S-variety ended flat at 2,600 rupees ($57.78) per 100 kg.

India has made available 1.703 million tonnes of non-levy sugar quota for August, higher than 1.56 million tonnes it had released for the previous month, the consumer affairs ministry said in a statement on Aug 1.

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

KUALA LUMPUR: Malaysian palm oil futures dropped on Monday to its lowest in more than nine months, as investors fretted over global economic growth and the outlook for commodity demand after the United States lost its top AAA credit rating.

Palm oil fell below the key 3,000 ringgit level with losses coming mostly from broadbased commodity declines.

Asian shares also slid and the dollar touched a record low versus the Swiss franc, as global policymakers' pledge to take whatever actions needed to steady financial markets did little to pacify nervous investors.

"Investors are cutting back some positions but in palm oil the declines are not so pronounced as it is the cheapest vegetable oil and consumers will fall back on this," said a trader with a foreign commodities brokerage.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange fell as much as 1.9 per cent to 2,994 ringgit ($993.53) per tonne -lowest since late October.

Traded volumes stood at 38,986 lots at 25 tonnes each, up from the usual 25,000 lots.

Reuters analyst Wang Tao said a bearish target at 2,950 ringgit per tonne has been established for Malaysian palm

National Commodity Exchange Ltd Trading Summary Date

8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011 8-Aug-2011

Commodity

Crude10 Crude10 Crude10 Crude100 Crude100 Crude100 SL100OZ SL100OZ SL100OZ SL100OZ SL500OZ SL500OZ SL500OZ SL500OZ GO1OZ GO1OZ GO1OZ GO100OZ GO100OZ GO100OZ GO100OZ GOLD GOLD GOLD GOLDKILO GOLDKILO TGOLD50 TGOLD100 MINIGOLD MINIGOLD MINIGOLD MINIGOLD MINIGOLD TOLAGOLD TOLAGOLD TOLAGOLD

Contract Date

Price Quotation

Open

High

Low

Close

SE11 OC11 NO11 SE11 OC11 NO11 SE11 OC11 NO11 DE11 SE11 OC11 NO11 DE11 SE11 OC11 NO11 SE11 OC11 NO11 DE11 AU11 SE11 OC11 AU11 SE11 AU11 AU11 MON TUE WED THU FRI MON TUE WED

US$ Per Barrel US$ Per Barrel US$ Per Barrel US$ Per Barrel US$ Per Barrel US$ Per Barrel US$ Per Ounce US$ Per Ounce US$ Per Ounce US$ Per Ounce US$ Per Ounce US$ Per Ounce US$ Per Ounce US$ Per Ounce US$ Per Ounce US$ Per Ounce US$ Per Ounce US$ Per Ounce US$ Per Ounce US$ Per Ounce US$ Per Ounce Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per Tola Per Tola Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per 10 grms Per Tola Per Tola Per Tola

86.44 86.47 86.47 86.28 86.87 86.47 39.65 39.00 39.72 39.67 39.66 39.72 39.72 39.88 1667.40 1668.20 1669.20 1667.30 1670.00 1669.10 1664.50 46790.00 45989.00 46182.00 46131.00 46141.00 53807.00 53807.00 47287.00 49000.00 47357.00 47374.00 47,391 55,211 54,514 55,805

88.22 88.64 86.47 88.18 87.80 86.47 40.37 39.91 39.91 40.35 40.21 39.91 39.91 39.92 1715.40 1716.10 1717.00 1706.30 1715.30 1707.30 1714.00 47398.00 47408.00 47422.00 47370.00 47380.00 55252.00 55252.00 48610.00 49000.00 48560.00 48577.00 48,593 56,039 56,000 55,969

83.25 83.70 84.98 83.25 83.88 84.98 37.56 39.00 39.72 37.70 37.64 39.72 39.72 38.02 1648.70 1649.50 1650.00 1667.30 1650.20 1669.10 1653.50 46159.00 45650.00 46182.00 46131.00 46141.00 53807.00 53807.00 47287.00 47339.00 47357.00 47374.00 47,391 54,487 54,100 54,567

84.07 84.48 84.98 84.07 84.48 84.98 39.89 39.91 39.91 39.91 39.89 39.91 39.91 39.91 1706.30 1707.30 1708.00 1706.30 1707.30 1707.30 1708.80 47398.00 47408.00 47422.00 47370.00 47380.00 55252.00 55252.00 48610.00 48543.00 48560.00 48577.00 48,593 56,028 55,950 55,969

Traded Volume in lots 1,440 831 410 179 602 1 145 127 39 5,760 8,318 6,583 71 25 4 18 2 87 203 1

Previous Settlement Price 86.07 86.96 86.47 86.07 86.96 86.47 39.70 39.72 39.72 39.73 39.70 39.72 39.72 39.73 1667.30 1668.40 1669.10 1667.30 1668.40 1669.10 1669.90 46159.00 46169.00 46182.00 46131.00 46141.00 53807.00 53807.00 47287.00 47339.00 47357.00 47374.00 47,391 54,487 54,547 54,567

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

Current Open Interest Settlement in Lots Price 84.07 473 84.48 504 84.98 84.07 98 84.48 56 84.98 39.89 77 39.91 2 39.91 39.92 70 39.89 39.91 31 39.91 1 39.92 8 1706.30 1,112 1707.30 2,740 1708.00 1,637 1706.30 1707.30 4 1708.00 1708.80 3 47398.00 1 47408.00 5 47422.00 47370.00 47380.00 55252.00 55252.00 48610.00 48543.00 2 48560.00 48577.00 48,593 56,028 46 55,950 111 55,969 11

10

Tuesday, August 9, 2011

Razaullah fails to get PCB extension KARACHI: Pakistan's senior most cricket organizer and administrator Razaullah Khan failed to get an extension from Pakistan Cricket (PCB), it was learnt here on Monday.

A former Council Member of the Board, veteran Razaullah was

working as PCB Coordinator for Sindh grounds and his over twoand-a half-year tenure ended on August 5.

"I got a letter from the PCB which said my contract has not been extended and I should hand over the charge and car keys to manager

National Stadium,' he said.

"I had always worked with PCB with dignity and respected the chairman of the board," he said while talking to APP about his reaction for not getting an extension.

He also denied the allegations that he could not get extension for

allegedly misbehaving PCB Chairman Ijaz Butt. "This is not correct. I could not even think of misbehaving him. I always respected Butt Saheb as we are 40 year old friends," he said.

However Razaullah said he was utterly disappointed after being

sacked from the job in the Holy Month of Ramadan.

"My journalist son is to undergo operation shortly, therefore, I had requested PCB to return the Board's vehicle within a month's time. But this request was also turned down", he added.

Razaullah, known in cricketing circles as a vocal critic of the board officials in the past and, recently, for sending letters to Chief Justice of Pakistan with a request to take suo moto action against the alleged bungling in the previous PCB regime. -APP

England call up Cleverley after he catches Capello eye M A N C H E S T E R : Manchester United midfielder Tom Cleverley was called up to Fabio Capello's England squad Monday for the midweek friendly with Netherlands after a sparkling performance in the Community Shield.

The 21-year-old, yet to play for United in the Premier League, came on as a secondhalf substitute in Sunday's 3-2 victory over Manchester City in the season curtain-raiser at Wembley and played a key part in his side's second goal.

PCB awards central contracts to players

Seen as a potential successor to the retired Paul Scholes, the lively Cleverley put Nani through for United's equaliser after an intricate passing move also involving England striker Wayne Rooney.

"He (Cleverley) has got a great future ahead of him," United and England winger Ashley Young told a news conference.

"He did tremendously yesterday ... I'm sure he'll go on to be a top player."

Cleverley was called up

Pak Jr football team enters SAFF final

LAHORE: Pakistan U16 Football team created history by moving into the final of the Inaugural SAFF U16 Championship beating Bangladesh 2-0 in a crunch match on Monday at a soggy pitch in Kathmandu.

Those who led Pakistan to a celebrated win included Mansoor Khan and Sher Ali who shared one goal apiece to secure a success for the young guns, said the information made available here.

The rain which left the ground soggy players from both sides faced difficulty in ball control and possession.

In the first half, Pakistan came close to scoring at the half hour mark with Mansoor Khan and Muhammad Bilal playing a neat one two at the edge of the Bangladeshi box with the former's powerful shot going agonizingly close.

Bangladesh tried some counter-attacking football but the defence line brilliantly led by Muneer never let them through on goal.

Just before the break a Mansoor Khan cross almost found Muhammad Zeeshan whose slide in on goal only missed the ball and glory by a fraction of second. The game was generally well contested but remained goalless in the first half.

LAHORE: Pakistan junior After the break, the game hockey team after winning opened up as both sides went their opening match against for the winning goal. The Egyptian senior hockey team, played a 2-2 draw in the second tie of the five-match series in Cairo.

According to information made available here on Monday, the Pak team played a goalless first half against the hosts who came with full force to strike two goals.

PESHAWAR: Vice President The Pak team put up greater of the Pakistan Olympic anticipation and technique to Association Syed Aqil Shah level the score at 2-2 ,folding left for London from the match in a draw.

Islamabad to represent The green shorts which are Pakistan in the Chef de on a preparatory tour of Missions meeting.

Egypt for next year's World Talking to APP before leavCup qualifying rounds, ing for London, Syed Aqil received one goal each from Shah, who is also Provincial Waseem Abbas and Minister for Sports Khyber Muhammad Dilber.

Pakhtunkhwa, said that Chef Pak junior will play their de Missions from 240 counthird match tomorrow, tries were coming to attend the Tuesday against the same pre-Olympic meeting. "We will also visit different venues side. APP

LAHORE: The Pakistan Cricket Board has awarded Central Contracts to the twenty eight players in A, B, C and Stipend Categories.

"These Contracts are for a period of 6 months starting from July 1st to December 31,2011, said a spokesman of PCB here on Monday.

Following are the names of players and their categories, (A) Younus Khan ,MisbahU l - H a q , U m a r Gull,Muhammad Hafeez ,Saeed Ajmal, Abdul Rehman.

(B) Abdul Razzaq,Imran Farhat,Sohail Tanveer, Umar Akmal ,Azhar Ali, Asad Shafiq,Wahab Riaz,Taufiq Umar.

(C) Junaid Khan, Tanvir Ahmed, Hammad Azam,Sarfraz Ahmad ,Sohail Khan, Adnan Akmal,Yasir Shah, Rameez Raja,Sharjeel Khan. (Stipend Category) Muhammad Talha, Aziz Cheema ,Zulfiqar Baber, Raza Hassan,Muhammad Ayub Dogar. -APP

Pak junior play 2-2 draw against Egyptian senior hockey team

after club mate Michael Carrick and fellow midfielder Jack Wilshere were sent home after being assessed by England medical staff before Wednesday's friendly against the 2010 World Cup runnersup, the Football Association said on its website (www.thefa.com).

Wilshere's participation had already been in doubt with his Arsenal manager Arsene Wenger saying at the weekend that England "can include him as much as they want, he will not play." -Reuters

Pakistani players, donning fresh kits having replaced the ones wet in the first half, immediately had some chances to score with last ditch defending denying them goals. When Mansoor Khan's beautiful free-kick hit the top of the cross bar to go out of play, extra time looked inevitable. But just before the 90 minute mark, Pakistan's best player on the night Mansoor Khan struck a 25 yard shot over the Bangladeshi keeper to give Pakistan the lead in 89th minute.

Just as the Bangladeshi boys started trying for a desperate last minute push to equalize, Coach Sajjad' young guns put the nail in the coffin and made it 2-0. Sher Ali dribbled past two defenders to score from a tight angle in 90+2 minute and send Pakistan into the SAFF U16 Championship Final.

Pakistan U16 team will face the winner of other Semi-Final between Nepal and India, in the final.

The Sajjad Mehmood and Hassan Baloch coached U16 team has won all its games and has yet to concede a single goal in the tournament so far. Thus there is a reason for optimism as the U16 team becomes the source of much needed joy for the Pakistani football fans. APP

Aqil Shah leaves for London to attend pre-Olympic meeting to see arrangements there," he added. Aqil Shah, who has a vast experience of organizing world sporting events, said that he would meet with the members of the International Olympic Committee to brief them about sports in Pakistan and the country suffered because of the militancy and insurgency.

He said peace could only be achieved through sports.

Sports was a vital tool to counter militancy and insurgency. -APP

PALLEKELI: Australia's bowler Steve Smith takes a return catch to dismiss Sri Lankan batsman Dinesh Chandimal, unseen, during the second Twenty20 cricket match between Sri Lanka and Australia in Pallekele.-Reuters

Zimbabwe beat Bangladesh on Test return HARARE: Zimbabwe beat Bangladesh by 130 runs in a one-off Test at Harare Sports club on Monday to claim their first victory since making their return to cricket after a six-year absence.

Zimbabwe had set Bangladesh a victory target of 375 runs in their second innings having declared at 291-5 at tea on Sunday.

However, the tourists were bowled out for 244.

Despite a steady start to their second innings the tourists were restricted to 228 at lunch, 147 runs short of their target with only two wickets remaining. Robiul Islam and Rubel Hossain were left to continue Bangladesh's unlikely bid, which was ended by Kyle Jarvis when he had Islam, on 12 runs, out for lbw.

Although Zimbabwe have recently played in other formats it is their first victory in the most respected Test format since self-imposed exile in January 2005, inspired by the fact they had become the whipping boys of Test cricket with little prospect of improvement.

In recent years administrators have introduced a franchised five-province first class league that has provided players with a competitive edge. ZimCricket managing director Ozias Bvute and chairman Peter Chingoka had also pushed for a return to Test cricket for at least 15 months since Sri Lanka and India played an ODI triangular in the country. -APP

Pakistan, Egypt match ends in a draw ISLAMABAD: The match between Pakistan and Egypt's junior hockey teams ended in a draw on late Sunday in the 5Test Match Series against Egyptian Hockey team in Cairo, Egypt.

Pakistan's scorers were Waseem abbas and Muhammad Dilber. On August 9 Pakistan junior team will compete against Egypt Senior Hockey Team, says a press release issued here. -APP

Pak cyclers to tak part in Indian contest LAHORE: Pakistan cycling federation will hold trials here on August 10 for the selection of riders to attend a camp for the build up of the team to participate in an international cycle race being held on September 4 in New Delhi.

"The trials will be held in the shape of a 75 kilometre road race commencing at Ring road at 6 am", said Idris Haider Khawaja, Secretary, PCF here on Monday.

He said the Indian cycle race

will be participated by a number of countries and Pakistan will field a strong team in the mega event.

He said PCF has deputed three judges Waqar Ali,Muhammad Amin Sulehri and Sardar Nazakat Ali to supervise the trials and to pick eight outstanding riders.

"We will be imparting strenuous training in the camp and will finally select a balanced team to represent the country in the race", he added. APP

Farooq to represent IUB in China games

BAHAWALPUR: Vice Chancellor of the Islamia University of Bahawalpur (IUB), Prof. Dr. Muhammad Mukhtar has congratulated Director Sports Amjad Farooq for becoming a part of the national squad representing the country in the 26th World Universiade Games in China.

Spokesman of the university, Shahzad Ahmad told APP on Monday that the Higher Education Commission of Pakistan had included Amjad Farooq in the contingent as Manager of HEC Judo Team in the games being held in Shenzhen, China from August 12 to 23, 2011.

His nomination in the China bound squad has been hailed in the sports circle of the division and affiliated institutions of the IUB hoped could have been benefitting to that the university players improve the skill and talent of will keep on achieving honPakistani players. ors for their institution. -APP He expressed hope that Pakistan Billiards and Snooker Association (PBSA) was serious in hiring the services of foreign coach.

He said participation of LAHORE: Punjab karate Pakistan players in World Association in collaboration Professional Billiards and with Punjab Olympic Snooker Association clinic Association is organising may also benefit Pakistani Independence day team fight players if they are invited to Karate championship here attend it.

Muhammad Sajjad said he tomorrow, Tuesday at Iqbal sports complex. was personally disappointed Park with his showing this year but President, Pakistan Karate Mohammad working very hard to stage a Federation, comeback at national and Jahangir and Khawaja Imran Nazir MPA, will be the chief international level.

Apart from domestic event guests at the closing ceremomy target will be to assure a ny to give away prizes among place in the Pakistan team for the notable position holders.

"Top martial art players the world championship to be of the province will feaheld later this year.

He said he had improved his ture in the one day meet game by playing against the which will further popubest professionals but he need- larise karate among ed a lot more hard work to youth", said Mohammad make his mark at the world Bashir Butt, Secretary, level. -APP PKF on Monday. -APP

Pakistan snooker needs coach KARACHI: Pakistan's leading cueist Muhammad Sajjad said that country is full of snooker talent but they needed a good coach to go places in international arena.

"Coach played crucial role in preparing the players mentally and psychologically and looking at their minor deficiencies and help in improving their gray areas," he told APP in an interview on Monday.

"Snooker is a precision sport and by closing monitoring the players coach can tell the players about his shortcomings and work plan to overcome those problems," said Sajjad from Sargodha, who finished runner-up in last year's Asian championship in Thailand.

"I personally think its difficult to improve and progress without a advise and coaching," he commented.

He said Pakistan enjoyed good reputation at the Asian and world level but good coaching can be very useful in further developing players.

He said an Indian coach

Independence day karate

UK terms rioters as criminals LONDON: British government officials branded rioters who fought police, looted shops and set fire to buildings at the weekend as opportunistic criminals and said the violence, the worst in London for years, would not affect preparations for next summer's Olympic Games.

Police arrested more than 160 people across London in a weekend of mayhem that started in the multi-ethnic, lowerincome neighborhood of Tottenham, only a few miles from the Olympic park that will welcome millions of visitors in less than a year.

"It was needless, opportunistic theft and violence, nothing more, nothing less. It is completely unacceptable," said Deputy Prime Minister Nick Clegg.

London Mayor Boris Johnson said he hoped the city would "have a fantastic Olympics no matter what happened last night."

Home Secretary Theresa May was cutting short her holiday and returning to London

for meetings with police officials in the afternoon, government sources said.

Nine police were injured in what police called "copycat criminality" in several parts of London on Sunday night and early on Monday, although the damage was on a smaller scale than Saturday's rioting in Tottenham, in the north of the capital.

The riots come at a time of deepening gloom in Britain as the pain from economic stagnation is exacerbated by deep public spending cuts and tax rises aimed at eliminating a budget deficit that peaked at more than 10 percent of GDP. The London police force has been criticized for its handling of recent large protests against the austerity measures, and its chief and the top counter-terrorism officer recently quit over revelations in the News Corp phone-hacking scandal.

While Britain's politicians were quick to blame petty criminals for the violence, neighborhood residents said anger at high unemployment

and cuts in public services, coupled with resentment of the police, played a significant role.

"Tottenham is a deprived area. Unemployment is very, very high ... they are frustrated," said Uzodinma Wigwe, 49, who was made redundant from his job as a cleaner recently.

The police, who will be in charge of security for next year's Olympic Games in what is expected to be Britain's biggest peacetime police operation, dismissed suggestions they failed to see trouble coming or were badly prepared.

Steve Kavanagh, a deputy assistant commissioner with the London force, said the first priority had been to ensure the safety of fire crews who came under attack as they tried to put out blazes.

"We weren't flat-footed," he said. "Priorities had to be determined and the resources were put where the greatest risks were. We experienced a very rapid increase in levels of violence."- Reuters

Saudi King condemns Syrian violence AMMAN: President Bashar al-Assad extended a tank onslaught in Syria's Sunni Muslim tribal heartland on Monday, residents said, in a crackdown on dissent that prompted an extraordinary warning from Saudi Arabia that he should stop the violence or risk defeat.

King Abdullah broke Arab silence after the bloodiest week of the almost five-month uprising for more political freedoms in Syria, demanding an end to the bloodshed and recalling the Saudi ambassador from Damascus.

Hours later Kuwait and Bahrain recalled their envoys too.

The steps by Gulf Arab states who watched the unrest mutely but nervously for months deepened Assad's international isolation.

Western nations have imposed sanctions on his top officials while countries with close ties

to Damascus such as Russia and Turkey have warned Assad he is running out of time.

The Saudi criticism was the sharpest the oil giant has directed against any fellow Arab state since pro-democracy uprisings began to sweep across the Middle East in January, toppling autocrats in Tunisia and Egypt, kindling civil war in Libya and rattling entrenched elites throughout the region.

"What is happening in Syria is not acceptable for Saudi Arabia," Abdullah said in a written statement read out on Al Arabiya satellite television.

"Syria should think wisely before it's too late and issue and enact reforms that are not merely promises but actual reforms," said the Saudi king, an absolute ruler whose country has no elected parliament.

"Either it chooses wisdom on its own or it will be pulled

down into the depths of turmoil and loss."

Syrian tanks and troops poured into the eastern Sunni city of Deir al-Zor in the latest stage of a campaign to crush centres of protest against 41 years of repressive rule by the Assad family and domination by his Alawite minority community.

"Armoured vehicles are shelling the al-Hawiqa district heavily with their guns.

Private hospitals are closed and people are afraid to send the wounded to state facilities because they are infested with secret police," Mohammad, a Deir al-Zor resident who did not want to give his full name.

He said at least 65 people had been killed since tanks and armoured vehicles barrelled into the provincial capital, 400 km (250 miles) northeast of Damascus, on Sunday, crumpling makeshift barricades and opening fire. - Reuters

Rebels plan to move towards Tripoli BIR AL-GHANAM, Libya: Libyan rebels who seized this town 80 km (50 miles) south of Tripoli said on Monday they would now push on towards Muammar Gaddafi's stronghold in the capital but expected a tough fight.

This small settlement in the desert is now the closest rebel position to Tripoli and its capture at the weekend is likely to inject some new momentum into a six-month campaign to oust Gaddafi which has been faltering over the past few weeks.

Anti-Gaddafi fighters had been camped since late June on the outskirts of Bir alGhanam, unable to advance.

According to rebels in the town on Monday, they moved in on Saturday under cover from Nato warplanes.

They said their next target was Zawiyah, a town on the Mediterranean coast 50 km west of Tripoli.

Zawiyah was the scene of two failed uprisings against Gaddafi's rule since February.

Many of the fighters in Bir alGhanam are from there, although a number of those who took part in the uprisings are now in prison or dead.

"Our aim is to get to Zawiyah. Once we do that Gaddafi is finished," said rebel fighter Murad Bada, who was sitting under the shade of a tree and humming a song about Zawiyah. In the eastern third of Libya, rebel officials said they had created a security force to protect oil installations, a step which could allow them to resume regular crude exports.

The capture of Bir alGhanam is the biggest rebel breakthrough in weeks of largely static fighting on three fronts across Libya. But that alone is not enough to undermine Gaddafi's grip on power.

The small rebel force approaching from the south could face much stiffer resistance as it draws nearer to the capital, where Gaddafi's troops are concentrated and where he can count on a certain level of popular support.

The rebel advance elsewhere has been hampered by divisions and infighting, as well as a lack of experience in warfare. - Reuters

tries to manage the impact of an uncertain global economic situation.

Goldman Sachs on Monday upgraded India to "market weight" from "underweight," citing a likely turn in the macro cycle, lower oil prices, lower valuation, and policy reform.

Mahindra & Mahindra rose 2.3 per cent to 668.25 rupees after India's largest utility vehicles maker reported a better-thanexpected 8 per cent rise in quarterly net profit, driven by strong volume and demand growth.

Index heavyweight Reliance Industries' shares fell 1.4 per cent to 780.65 rupees, taking its losses to more than a quarter this year amid concerns about slowing production from its showcase gas fields off India's east coast.

The 50-share NSE index ended down 1.8 per cent at 5,118.50 points.

In the broader market, losers were ahead of gainers in the Continued from page 5 No #2 At one stage, the Hang Seng benchmark was down more than 4 per cent, falling ratio of 4.7:1 on the NSE, on relatively high volume of 742 milbelow a key support level at 20,370, its August 2010 low. It rebounded to finish lion shares.-Reuters

No #1

Continued from page 1

$18.3 billion and the stock markets, despite the global and US recession were doing pretty well. Gilani attributed all these changes to the politics of reconciliation and consistency that his government was pursuing.He assured the Pakistani expatriates that the country was in safe hands and its nuclear program was safe and secure and there was no need to worry. He said the civil society was vibrant, judiciary was independent and the media free.

Gilani said the 1.5 million Pakistanis in Saudi Arabia were playing a key role in building the national economy and termed them an asset for the nation.

The Prime Minister who is in the Saudi Kingdom on a two-day official visit interacted with the investors and businessmen and sought their suggestions to enhance trade ties between the two countries.

The dinner was attended by Commerce Minister Makhdoom Amin Fahim and Senior Minister of Industries and Defence Production Chaudhry Pervaiz Elahi besides a large number of Pakistani and Saudi investors and businessmen. - APP

above that level after the ECB was seen buying Spanish and Italian bonds. Large cap oil counters led the Shanghai Composite Index to its biggest single-day loss since November 2010, sinking the benchmark deeper into oversold territory on the charts as its RSI value dived to its lowest since the depths of the 2008 financial crisis. The Shanghai benchmark finished down 3.8 per cent to 2,526.8 points, extending a losing streak into a second straight session as A-share turnover surged to 116.8 billion yuan $18.14 billion), the highest in a fortnight. The index closed at the lowest since July 2010. PetroChina Co Ltd's 3.1 per cent decline was the top drag on the benchmark. It also plunged the stock deeper into oversold territory on the charts, leaving its price barely 2 per cent above lows last seen at the height of the 2008 financial crisis.-Reuters

No #3

Continued from page 5

"If the global economic situation worsens then there will be a flight to safety and money will be pulled out from all the markets including India," said Dipen Shah, head of private client research group at Kotak Securities.

Ratings agency Standard & Poor's cut the US long-term rating by one notch from AAA on Friday, capping a week that saw $2.5 trillion wiped off companies' values amid worries the US economy was stalling.

The benchmark 30-share BSE index closed down 1.82 per cent, or 315.69 points, at 16,990.18, closing below the 17,000mark for the first time in nearly 14 months, with all but six of its components closing in the red.

The BSE index, which dropped as much as 3.2 per cent during trade, is down more than 17 per cent this year making it one of the worst global performers this year. It has lost 7.2 per cent in the last five trading sessions.

"The US debt rating downgrade and the related global uncertainty will certainly keep the Indian markets under pressure for some time," said Kaushik Dani, a fund manager with Peerless Mutual Fund.

Gold price was set for its second largest daily gain this year on Monday after the respective pledges by the G7 and the European Central Bank to quell the turbulence in the financial markets did nothing to put investors at ease.

In a move to calm nervous investors, Finance Minister Pranab Mukherjee said India was in a better position than other coun-

11

International & Continuations

Tuesday, August 9, 2011

No #4

Continued from page 5

Elsewhere in Asia, the Hang Seng Index plunged more than 4 per cent to hit its lowest level in a year, while the Shanghai Composite Index dropped more than 3 per cent.

S&P cut the long-term US credit rating by one notch to AAplus on Friday on concerns about the government's budget deficit and rising debt burden.

Market participants are now looking to the Federal Open Market Committee meeting on Tuesday for indications as to whether the Federal Reserve might ease monetary policy further.

"Investors are focusing on whether the Fed may hint at a third round of quantitative easing or other easing measures. If it doesn't, investors may signal their disappointment by selling stocks," said Toshio Sumitani, a senior strategist at Tokai Tokyo Research Center. If that happens, the Nikkei may slip below 9,000 for the first time since March, he added.

REPERCUSSIONS Some market observers remain bearish about the global economy and its potential repercussions for the Japanese market.

Goldman Sachs cut its recurring profit forecasts for companies listed on the Tokyo Stock Exchange's main board, saying they could expect a 5.2 per cent decline in the financial year to next March.

The brokerage also revised down its targets for the Topix index to 850 from 890 in the next three months and to 900 from 910 in the next six months.

Honda Motor Co sagged 3 per cent to 2,799 yen after the automaker said it plans to recall 2.49 million cars, small SUVs and minivans worldwide to repair a software problem that could affect automatic transmissions.

Volume was moderate with 2 billion shares changing hands on the Tokyo stock exchange's main board, in line with last week's daily average. Declining issues outnumbered advancing issues by 1,521 issues to 108.-Reuters

DHARAMSALA, India: The Dalai Lama (R) embraces Lobsang Sangay, the elected prime minister of the Tibetan government-in-exile, after his swearing-in ceremony in the Tsuglakhang temple in the northern Indian hill town of Dharamsala. Sangay, a Harvard graduate, replaced the Dalai Lama as the Tibetan movement's political leader. - Reuters

Chinese FM to meet Sudanâ&#x20AC;&#x2122;s Bashir K H A RTO U M / B E I J I N G : China's foreign minister was due to meet Sudanese President Omar Hassan alBashir Monday for the highest-level talks between the two allies in the Sudanese capital since South Sudan seceded to form an independent state.

Yang Jiechi met north Sudanese Foreign Minister Ali Ahmed Karti in Khartoum and announced that China was giving North Sudan a 100 million yuan ($15.60 million) interest-free loan, a Sudanese government statement said.

Yang said Monday that China will not alter its policy to develop friendly relations with Sudan no matter how

Khartoum's internal situation and regional situation may change, the Chinese foreign ministry said in a statement on its website.

"We are willing to step up the cooperation in oil industry and encourage and support more qualified Chinese companies to invest in Sudan," he said.

North Sudan was the sixthlargest source of Chinese oil imports in 2010. China has maintained close ties with North Sudan throughout a US trade embargo.

Beijing called on the world to normalise relations with Khartoum after South Sudan seceded last month and has also been keen to build a rela-

tionship with leaders in the south.

Yang said China will continue its efforts with the international community to find a final solution for the issue of the disputed area of Abyei.

North Sudan and South Sudan both hope to include Abyei in their territory, but Khartoum and Juba have yet to agree on who will control Abyei, stirring fears a longrunning quarrel over the region could sour the secession and spark a broader conflict.

Yang said China is paying attention to the ongoing violence in Southern Kordofan, a volatile and oil-rich Sudan border territory. - Reuters

Bonanza of Somali piracy NAIROBI/MOGADISHU: A $3.6 million ransom seized in Somalia in May was destined for a pirate boss subject to US sanctions, an illustration of how a criminal enterprise that costs the global economy billions of dollars pays scant heed to policy directives from Washington.

Documents obtained by Reuters and multiple sources in Somalia show the bungled payment was meant to free the Chinese vessel MV Yuan Xiang, and that a pirate gang working for kingpin Mohamed Abdi Garaad was behind the seizure of the ship.

While this transaction did not go through, it shows how the ransom industry can operate efficiently despite the strong public stance taken by the United States to curb the financial flows that fuel the flourish-

ing piracy business.

The payment of ransoms to Somali pirates is a sensitive and delicate subject. Some $240 million was paid to Somali pirates last year to free ships and crew and as of July another 400 sailors remained hostage off the Somali coast.

Those in favor of ransoms argue they are the only safe way to free seafarers. Ransom payments are legal under British law, they are covered by marine insurance, and stopping them would lead to hostages being killed in an attempt to extract payment.

Those against say that without taking concerted action to curb the rapidly escalating ransoms, the piracy business will inevitably become more sophisticated, more violent and more costly to the shipping industry and the global economy.

"Attacks by Somali pirates occur and, in fact, are increasing because of two elements: opportunity and incentive," said J. Peter Pham, Africa director with U.S. think-tank the Atlantic Council.

"The only way to decrease the incidents is to cut off the incentive for them by obstructing the payment of ransoms, if not banning them altogether.

While such a strategy is not without its risks, at least initially, over time it is likely to dramatically reduce incidents of piracy," he said.

When U.S. President Barack Obama signed Executive Order 13536 in April 2010, including two well-known Somali pirate kingpins on a list of people deemed to be destabilizing forces in Somalia, it sent shockwaves through the shipping industry. - Reuters

Protests in BD as Khaleda charged with corruption DHAKA: Bangladesh is bracing for more protests after the country's Anti-Corruption Commission on Monday filed a case against former premier Khaleda Zia, accusing her of buying land in a trust's name by using undeclared funds.

Politics in impoverished Bangladesh has been dominated for two decades by a violent rivalry between Khaleda Zia and current Prime Minister Sheikh Hasina, often trading corruption charges and organizing massive protests when in opposition. The commission charges, the first since Sheikh Hasina's Awami League Party took power in 2009, come after a series of anti-government strikes last month that have crippled business over issues ranging from a constitution-

al amendment on election procedures ahead of 2013 polls to a recent natural gas exploration pact with ConocoPhillips.

The commission, responsible for investigating official corruption charges and used widely when an army-backed government under emergency rule took power between 2007 and 2009, alleges Khaleda Zia bought land in 2005 for 65.2 million taka ($881,000) for a charity named after her slain husband former president Ziaur Rahman. "But the trust failed to show any valid source for part of the payment of the land purchase," a commission official told reporters.

Khaleda Zia's two sons also face corruption charges, which her Bangladesh Nationalist Party said were politically motivated. - Reuters

For Subscription

Manager Circulation Ahmad Omer

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

12

RIAZ NEWS AGENCY Cell # 0333-5373137

Tuesday, August 9, 2011

SHAKIL NEWS AGENCY Cell # 0333-4400472

US dismayed on terrorists safe havens WASHINGTON: US Senator John McCain has said that continuation of terrorists' safe havens in such country which would make it tough for America to succeed in the war against terrorism.

"We have to have a realisation that the present sanctuary situation in Pakistan cannot continue. Otherwise, it places enormous burdens on our ability to succeed," McCain told NBC. McCain said continuation of terrorist sanctuary now in Pakistan with the Haqqani network, the ISI cooperation with other groups including Taliban, is a major problem in this war against terror-

ism.

"I believe we've made significant successes. Our prayers and thoughts go out to the families of those brave, brave, elite of our elite that have sacrificed," he said.

"But, at the same time, we're going to have to address this sanctuary situation, and we're going to have to address the problem that the President has created, and that is that out there, there is the perception Afghanistan and other parts of that part of the world that America is withdrawing that can't be good," McCain said.

"There is no doubt that we

have had significant success, particularly in the southern part of Afghanistan. The reason why I worry a lot is I'm not sure we have a sufficient number of troops for another fighting season so we can gain control in the Eastern side of the country," he said.

"We all know that Taliban cooperated with an assisted al Qaeda initially, which is the reason why we went to Afghanistan as the result of 9/11. So there is no doubt in my mind that we would have al Qaeda presence and influence in Afghanistan and even a return to a base for attacks on the United States of America," he added. - Online

Financial crunch clips BISP wings ISLAMABAD: The Benazir Income Support Programme (BISP) is considering no new appointments owing to ban on recruitment coupled with financial constraints, and the essential vacant positions will be filled with government officers on deputation basis or through World Bank funding.

The BISP has overall 1957 employees including on-deputation, contractual and World Bank positions. As many as 295 employees are working in the BISP head office while 1662

are working in the regions down to tehsil level, according to BISP's official documents available with APP. The BISP is following the prescribed government rules of appointment and deputation for positions funded by Government of Pakistan, i.e. advertisement in national dailies, tests where required and interview by Recruitment Committee.

However, the World Bank guidelines are followed only in case of technical assistance

positions.

The BISP is a new organisation that is being run in a dynamic and unconventional way, but according to rules and regulations, the documents said.

Every effort is made to economise the administrative expenditure.

The total expenditure incurred during financial year 2010-2011 stood at Rs33.5 billion while the budgetary allocations for the programme during FY 2011-12 were Rs50 billion. - APP

MoI vows to spur indigenous investment ISLAMABAD: The government is trying to tap the huge indigenous investment available in the country and making efforts to ensure that the investors are convinced to invest money in the productive sectors rather than investing abroad or in the real estate.

This was stated by the federal secretary Ministry of Industries (MoI) , Aziz Ahmad Bilour while talking to a delegation of Rawalpindi Chamber of Commerce and Industry (RCCI) led by its President Syed Ali Raza here Monday.

Aziz Bilour said that though the Pakistani industry was passing through difficult times from

last few years, yet it showed resilience and now there are clear signs of improvement in the industrial sector.

He said that considering the industrial potential of this region the government will look into the proposal to establish special economic zone (SEZ) in the region to promote cluster industry.

The secretary told the delegation that government is well aware of the problems of energy deficiency currently face by the industry and assured them that this shortage will be considerably reduced as the energy import and production projects will mature in the near future.

He ensured the delegation that the business community will be taken on board in the policy making process and all the positive proposals from the business community will be incorporated in the future scheme of things.

Ali Raza, President RCCI, said that the liaison between the Ministry of Industries and RCCI has been very productive and fruitful in the past.

He proposed that there was a need to establish an export processing zone (EPZ) in the RCCI Industrial Estate in Rawat which can add value to the product produced in the region. - APP

Govt pursues achieving export targets KARACHI: Ministry of Commerce and Trade Development Authority of Pakistan (TDAP) will continue to provide enabling environment for the exporter community to further boost exports.

Tariq Iqbal Puri, chief executive TDAP and Zafar Mahmood, federal secretary commerce held stakeholders' consultative meetings with prominent exporters and representatives of various trade bodies relating to textile & clothing; agro food; leather; mines & minerals; gems & jewellery, information technology, services sector etc. in TDAP on Monday to firm up the strategy for setting the targets for fiscal year 2011-12 for removal of bottlenecks.

Tariq Puri, chief executive TDAP stressed on the business community that they should focus more on regional markets especially in China, Japan, Viet

Nam, Malaysia and Indonesia.

Zafar Mahmood, secretary commerce sensitised them that our exporters could leverage from trade with India. He also informed that Ministry of Commerce is taking steps for seeking approval of 72 items to be exported to EU and getting Generalised System of Preference (GSP) Plus status for Pakistan.

Exporters were advised that they should give more focus on value addition of their products for fetching good export prices of their products. Ministry of Commerce and TDAP, through the trade officers, will market their value-added products.

Secretary commerce and CE TDAP assured that effective inter-ministerial coordination will be ensured to resolve issues hampering the exports; especially with Federal Board of Revenue.

Secretary commerce and CE

TDAP will also hold meeting with chief secretary Sindh for resolving the matters affecting export of fisheries sector.

Special focus shall be given to non-traditional sectors like marble & granite; petroleum and its products; gems and jewellery and services sector, especially the information technology and engineering consulting services.

Chief executive TDAP informed that TDAP is fasttracking the Dazzle Park at Karachi near the airport for boosting the export of gems and jewellery sector.

The trade bodies are optimistic that efforts being taken

by Ministry of Commerce and TDAP will indeed ensure the momentum going for increase in exports and they are of the view that up to 10 per cent increase in the overall export value is expected in fiscal year 2011-12. - Online

MAKKA: Prime Minister Syed Yousuf Raza Gilani performing Tawaf of Khana-e-Kaba during Umra.-Online

CIA posts new chief in Pakistan ISLAMABAD: The new undercover Central Intelligence Agency (CIA) Islamabad station chief has arrived in Pakistan days after the former CIA abruptly left Pakistan, reports said Monday.

US officials had said that the ex-CIA chief was recalled on medical grounds but American media had reported that he left Pakistan due to tension with Pakistan's spy chief after the US raid killed Osama bin Laden.

He was also believed to have developed serious differences with US ambassador Cameron Munter on the CIAled drone campaign in the country's tribal belt.

The new CIA station chief is the third in the last seven months that the US top spy agency has appointed in Pakistan, IRNA news agency reported.

The new CIA chief has already met senior Pakistani intelligence officials, including Ahmed Shuja Pasha, in an effort to mend deteriorating ties. However, neither the Pakistani authorities nor the US embassy have confirmed the meeting.

A US embassy spokesperson even refused to confirm or deny the arrival of the new CIA station chief, saying he was not authorised to speak regarding intelligence matters.

The CIA Islamabad station chief is considered to be one of the US agency's most important positions in the world. In December last year, the CIA pulled its then station chief Jonathan Banks out of Pakistan after his cover was blown up in a lawsuit filed by relatives of drone attack victims.

His successor, who recently left the post, oversaw the intelligence operation that led to the May 2 raid by US Special Forces in Abbottabad that killed al Qaeda chief Osama bin Laden. However, over the past few months, his relations with the ISI deteriorated. The country's security establishment has repeatedly expressed reservations over what it called 'the private CIA network.'

Following the Abbottabad raid, security agencies rounded up several Pakistanis, who were believed to be working for the CIA. "The CIA's decision to pull out its Islamabad station chief is a confidence-building measure to rebuild ties with the ISI," said a security official. - NNI

IPPs worried on rising Pepco dues ISLAMABAD: All the members of IPPAC (Independent Power Producers Advisory Council) unanimously have raised their concern regarding ever increasing overdue amounts payable to them by Pepco which have now touched a peak of approximately Rs210 billion as on August, 8, 2011.

An emergency meeting of IPPAC (Independent Power Producers Advisory Council) was held at its office in Islamabad chaired by its chairman M Abdullah Yousuf.

Moreover, Gul Ahmed Energy in the South is also closed down for the last 3 weeks due to nonpayment of almost Rs3 billion payables

by KESC. This is causing defaults with their banks and also restricting the supply of power due to non availability of fuel.

The situation has aggravated to the point, that within the next few days, they will be forced to shut down their power plants due to nonpayment of their overdue amounts outstanding.

The members felt particularly concerned that the present position of load shedding would be aggravated and would unduly create more hardships for the public particularly during the holy month of Ramazan.

They therefore requested the newly formed committee on power issues headed by

finance minister and represented by Minister for Water and Power, Minister for Petroleum and Natural Resources.

Deputy Chairman Planning Commission and acting Governor State Bank of Pakistan, to immediately convene a meeting of all IPPs, so as to apprise the committee of their desperate situation.

The meeting resolved to reiterate to the committee, the urgency to immediately inject at least Rs150 billion to save the IPPs from total closure within the next few days. Failure to do this will cause immediate shortage of electricity for the consumers. - APP

Grateful Bilour laments late bailout for PR ISLAMABAD: Minister for Pakistan Railways (PR) Ghulam Ahmad Bilour on Monday expressed the hope that Rs10.2 billion bale out package announced by the government for the Railways will improve its performance.

Talking to APP he said "Rs10.2 billion package announced by the Pakistan Railways will improve Railways' efficiency within five to six months."

He said that PR performance would have been much better if the government had given an amount of Rs5 billion demanded by the PR in January.

The Minister said that Railways is dilapidated, however, the efforts are underway to improve its performance.

Ghulam Ahmad Bilour said unfortunately Railways was

ignored and no attention was paid on the improvement of this public utility service.

The Minister said most of the railway fleet including passenger coaches, freight wagons and locomotives have been outdated and the whole institution needs a massive restructuring.

He said work on dualization of Lodhran-Sahiwal rail track has been completed while dualization of Raiwind-Sahiwal section is underway.

He said that the completion of this project would help significantly reduce travel time between Lahore and Karachi. - APP

MQM nearing treasury benches KARACHI: The higher leadership of Muttahida Qaumi Movement (MQM) has signaled joining hands with the coalition government as all kinks causing friction between MQM and Pakistan People's Party (PPP) have been ironed out.

PPP has removed all reservations expressed by MQM which parted ways with the government on June 27.

According to sources, federal minister Dr Asim Hussain, who undertook negotiations with the higher leadership of MQM, has confided in the message that MQM will soon trace its steps back into the coalition government.

MQM chief Altaf Hussain will make an important announcement in the couple of next days after consulting

with members of the coordination committee and party workers.

It should be mentioned here that the change in MQM's attitude was affected by elections on Karachi's seats for Azad Jammu and Kashmir legislative assembly, restoration of local governments in Sindh and returning to Karachi of MQM's workers imprisoned in Interior Sindh. - NNI

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