The Financial Daily Epaper 04-10-2010

International

Local Afghan security cos disbanding begins See on Page 12

BoA delays foreclosures in 23 US states See on Page 12

Tajikistan woos Pak oil, gas explorers See on Page 12

See on Page 12

BoE can support UKeconomy: Cameron

Crude Oil (brent)$/bbl 83.75

Crude Oil (WTI)$/bbl 81.58

Cotton $/lb 98.02

Gold $/ozs 1,317.80

Silver $/ozs 22.06

Malaysian Palm $ 886.00

GOLD (NCEL) PKR 36,466

KHI Cotton 40Kg PKR 7,555

Yearly(Jul, 2010 up to 30-Sep-2010)

Monthly(Sep, 2010 up to 30-Sep- 2010)

Daily (30-Sep-2010)

Total Portfolio Invest (23 Sep-2010)

49.23

-36.65

3.73

2311

2.17

-2.88

0.67

1.01

-0.50

-0.38

-0.10

SCRA(U.S $ in million)

Portfolio Investment

FIPI (01-Oct-2010)

Local Companies (01-Oct-2010)

Banks / DFI (01-Oct-2010)

Mutual Funds (01-Oct-2010)

NBFC (01-Oct-2010)

Local Investors (01-Oct-2010)

Other Organization (01-Oct-2010)

(U.S $ in million)

NCCPL

GDR update

Commodities

Forex Reserves (24-Sep-10)

Inflation CPI% (Jul 10-Aug 10)

Exports (Jul 10-Aug 10)

Imports (Jul 10-Aug 10)

Trade Balance (Jul 10-Aug 10)

Current A/C (Jul 10- Aug10)

Remittances (Jul 10-Aug 10)

Foreign Invest (Jul 10-Aug10)

Revenue (Jul 10-Aug10)

Foreign Debt (Jun 10)

Domestic Debt (Jul 10)

Repatriated Profit (Jul- Aug 10)

LSM Growth (Jul 10)

GDP Growth FY10EPer Capita Income FY10Population

$16.79bn

12.79%

$3.56bn

$6.25bn

$(2.69)bn

$(944)mn

$1.72bn

$267.10mn

Rs 185bn

$55.63bn

Rs 4705.40bn

$100.90mn

3.05%

4.10%

$1,051

170.69mn

Economic Indicators

Symbols

MCB (1 GDR= 2 Shares)

OGDC (1 GDR= 10 Shares)

UBL (1 GDR= 4 Shares)

LUCK (1 GDR= 4 Shares)

HUBC (1 GDR= 25 Shares)

$.Price

2.60

17.31

2.00

1.70

9.57

PKR/Shares

112.01

149.14

43.08

36.62

32.98

T-Bills (3 Mths)

T-Bills (6 Mths)

T-Bills (12 Mths)

Discount Rate

Kibor (1 Mth)

Kibor (3 Mths)

Kibor (6 Mths)

Kibor ( 9 Mths)

Kibor (1Yr)

P.I.B ( 3 Yrs)

P.I.B (5 Yrs)

P.I.B (10 Yrs)

P.I.B (15 Yrs)

P.I.B (20 Yrs)

P.I.B (30 Yrs)

22-Sep-2010

22-Sep-2010

22-Sep-2010

29-Sep-2010

01-Oct-2010

01-Oct-2010

01-Oct-2010

01-Oct-2010

01-Oct-2010

01-Oct-2010

01-Oct-2010

01-Oct-2010

01-Oct-2010

01-Oct-2010

01-Oct-2010

12.69%

12.82%

12.79%

13.50%

12.80%

13.07%

13.23%

13.62%

13.73%

13.85%

13.91%

14.00%

14.23%

14.21%

14.40%

Money Market Update

Symbols Buy (Rs) Sell (Rs)

Australian $ 82.80 83.80

Canadian $ 82.80 83.80

Danish Krone 15.00 15.40

Euro 116.90 118.10

Hong Kong $ 11.00 11.40

Japanese Yen 1.019 1.045

Saudi Riyal 22.95 23.15

Singapore $ 65.00 66.00

Swedish Korona 12.10 12.60

Swiss Franc 84.90 85.90

U.A.E Dirham 23.45 23.65

UK Pound 135.40 137.10

US $ 86.45 86.75

Open Mkt Currency Rates

Index Close Change

KSE 100 10,042.44 29.13

Nikkei 225 9,404.23 34.88

Hang Seng 22,358.17 20.50

Sensex 30 20,445.04 375.92

SSE COMP. 2,655.66 44.98

FTSE 100 5,592.90 44.28

Dow Jones 10,829.68 41.63

Global Indices

Symbols Buying Selling

TT Clean TT & OD

Australian $ 83.48 83.67

Canadian $ 83.73 83.92

Danish Krone 15.79 15.82

Euro 117.66 117.94

Hong Kong $ 11.10 11.13

Japanese Yen 1.032 1.035

Saudi Riyal 22.97 23.02

Singapore $ 65.51 65.66

Swedish Korona 12.81 12.84

Swiss Franc 87.94 88.14

U.A.E Dirham 23.46 23.51

UK Pound 135.51 135.83

US $ 86.16 86.35

Inter-Bank Currency Rates

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CITIES MAX-TEMP MIN

ISLAMABAD 33°C 16°C KARACHI 39°C 24°C LAHORE 36°C 24°C FAISALABAD 37°C 22°C QUETTA 30°C 12°C RAWALPINDI 34°C 18°C

Weather Forecast

NEW DELHI: Spectators cheer as the Indian team arrives at the Jawaharlal Nehru Stadiumduring the opening ceremony for the Commonwealth Games.-Reuters

Ghulam Raza Rajani

KARACHI: Corporate sectorprofitability showed signifi-cant growth of 33.7 per centduring the period April to June2010.

Cumulative earnings of thecompanies rose to Rs62.48 bil-lion ($727 million) in 2QCY10against Rs46.74 billion ($556million) in the correspondingperiod last year.

This profitability is revealedfrom TFD Universe, whichincludes 38 companies repre-senting 77 per cent of the totalmarket capitalisation of KSE100-Index.

As per the TFD analyst, gasmarketing company (GMC),textile, chemicals, fertilisers,automobiles, exploration &production (E&P), banks andpower companies showed

jumped in their profitability.While refiners, cement-mak-

ers and telecoms profitabilityremain depressed owing toweakening fundamentals.

The star-sector whichshowed highest profitabilitywas textile sector in whichNishat Mills reported signifi-cant growth -- mainly drivenby higher cotton prices.Company's profitability standsat Rs1105 million in 2QCY10versus Rs168 million in corre-sponding last year.

Second best sector in termsof profitability remainedchemical sector in which bothcompanies in TFD universe i.e.ICI and Lotte performed well.

Cumulative earnings of thelisted companies surged 91.8per cent to Rs2.02 billionagainst Rs1.05 billion

See # 6 Page 11

Corporate sectorearning hops 34pc

2QCY10

RIYADH: The Islamic

Development Bank (IDB) will

more than double the size of

bonds, or sukuk, issued under

an ongoing programme to $3.5

billion to help Pakistan meet

financing needs mainly from

floods.

"IDB has successfully updat-

ed its Sukuk Trust Certificate

Issuance Programme and

increased the ceiling of the

programme from $1.5 billion

to $3.5 billion," it said in a

statement on Sunday.

"This increase is to facilitate

new issuance of sukuk which

will be used to finance a

planned growth in IDB's oper-

ations," it added.

It did not say when it plans to

sell its next sukuk.

In 2009, the Saudi-based

triple-A lender issued an $850

million sukuk which was the

first tranche of a $1.5 billion

bond. The issue was part of the

$6 billion programme it estab-

lished to soften the impact of

the financial crisis on its mem-

ber countries.

An IDB official said the

move would enable the bank to

provide loan to Pakistan, hit by

massive flooding earlier this

year. The World Bank esti-

mates the floods have damaged

or destroyed more than 1.8

million homes and displaced

See # 7 Page 11

IDB sukuk up over2-fold for flood aid

Move to help Pakistan meet fiscal needs

Ahmed Siddique

KARACHI: The buying spreeby the offshore investors in thelocal bourse continued duringthe third quarter of the calendaryear as $105.3 million net buy-ing was recorded, as per theNational Clearing Company ofPakistan Limited (NCCPL)data.

As per data, foreignersbought $247.84 million worthof shares against selling of$142.51 million which resultedin net-buying of $105.3 million

in the period July-September(3QCY10).

On the other hand, benchmarkIndex of the exchange didn'tshow any major development asit increased by 291 points or just3 per cent during the quarterwhile it jumped 2,187 points or30.54 per cent during the sameperiod last year.

Average daily turnover of theexchange during the last quar-ter stood at around 62 millionshares declined by more than67 per cent from the same

See # 8 Page 11

Foreigners stock$105mn equities

FIPI at KSE during 3QCY10

Redemption of $51mn in Mutual Funds

RGST to loadtaxpayerswith extra

Rs119 billion ISLAMABAD: The people

will be burdened with addition-

al Rs119 billion with Reformed

General Sales Tax (RGST) in

the wake of conditions

streamed from International

Monetary Fund (IMF).

The tax was to come into

force from October 1st; but

now it will be imposed from

See # 9 Page 11

Governor Punjab Taseer calls on Gilani

We founded conciliatory culture: PMLAHORE: Prime MinisterSyed Yousuf Raza Gilani saidthe government commencedthe political culture of reconcil-iation in the country by puttingan end to tradition of politicalrevenge, media reported

Sunday.PM Gilani said this while

talking to Punjab GovernorSalman Taseer who called onhim at his residence.

Both the leaders mulled overvarious issues including nation-

al politics and flood-spawnedsituation facing the country.

PM Gilani said the govern-ment has the rehabilitation ofthe flood affectees as the toppriority and the efforts for the

See # 10 Page 11

C’wealthGames openin New DelhiNEW DELHI: The 19thCommonwealth Games weredeclared open on Sunday in aspectacular opening ceremonywhich might repair some of thedamage to India's image after acalamitous buildup to the sport-ing festival.

The preparations for the $6billion event, dubbed the"friendly games," have beenmarred over the last few weeksby a series of setbacks toIndia's ambition of showing offits soft power on the interna-tional stage.

Organisers are hoping to putall that behind them over thenext 11 days of sporting com-petition between mostly formerBritish colonies, although therewere boos for chief Gamesorganizer Suresh Kalmadi.

“I am delighted to declare theGames open," said Britain'sPrince Charles, who was greet-ed with chants of "India!India!" before he read out amessage from his motherQueen Elizabeth, the head ofthe Commonwealth. -Reuters

Militants threatenmore attacks onfuel tankers

ISLAMABAD: PakistanSunday refused to reopenNato supply route till the pub-lic anger eases and security inthe particular areas improved,foreign ministry spokesmansaid.

Militants threatened moreattacks on tankers carryingfuel to Afghanistan throughPakistani routes to avenge the

incursions, after setting fire tothree dozen of the vehicle.

"Unless the reaction coolsdown and we make sure thatthe supply line is secured, wecannot reopen it," ForeignMinistry spokesman AbdulBasit said.

“It's just because of securityreasons. There's no timeframe.I think it should be done soon.”

Angered by repeated incur-sions by Nato helicopters over

the past week, Pakistanblocked a supply route forNato troops in Afghanistanafter one such strike killedthree Pakistani soldiers onThursday in the northwesternKurram region.

The Nato incursions and theclosing of the supply route,now in its fourth day, haveheightened tensions betweenthe United States and Pakistan,

See # 4 Page 11

Nato suppliesfrozen for now

Route to open only after reaction cools down: FO

FM meetsNato chief

BRUSSELS: Nato chiefAnders Fogh Rasmussen is allset to call on Foreign MinisterShah Mehmood Qureshi onMonday (today) amid a dis-pute over a Nato helicopterstrikes inside Pakistan.

Qureshi will visit the transat-lantic alliance's headquarters

See # 5 Page 11

Intrusion intolerable,Haqqani tells AmericaWASHINGTON: Pakistan's ambassador to the United States

Hussain Haqqani Sunday said the two allies are working close-

ly to thwart terrorist attacks anywhere in the world but made it

clear that his country would not allow any foreign troops on its

soil and follow its own timeline for anti-terror actions on its side

of the Afghan border.

"Pakistan will go after all terrorist groups that are operating on

its soil. We've done it in the last two and a half years and the few

groups that are remaining we will target them with American help

but it will be technical help, it will not be personnel on ground,"

he told CNN's State of the Union program. See # 3 Page 11

Sr journalistJamil Siddiquipasses away

in road mishapStaff Reporter

KARACHI: Senior journalistof The Financial Daily, JamilAhmed Siddiqui has lost hislife in a road accident Saturdaynight while he was on his wayback to home.

According to eye witnesses,

Jamil Siddiqui was crossingTariq Road around midnightwhen a vehicle smashed him.He was immediately taken tohospital where he succumbedto injuries. SHO FerozabadRao Khalid, who was presenton the spot, apprehended thecar-driver. Jamil Siddiqui leftbehind a son and widow tomourn his death.

See detail news on Page 2

Karachi, Monday, October 4, 2010, Shawwal 24, Price Rs12 Pages 12

2 Monday, October 4, 2010

TV PROGRAMMES

MONDAY

Time Programmes7:00 News8:00 News9:05 Subah SavereMaya ke Sath11:10 The Reema

Show (Rpt)12:00 News13:10 Faisla Aap Ka

(Rpt)14:10 Tafteesh15:00 News16:00 News17:30 Samaa Metro18:00 News18:30 Samaa Sports19:30 Crime Scene20:03 Newsbeat21:00 News22:03 Tonight With

Jasmeen23:00 News23:30 24

LARKANA: The mem-bers of a judicial commis-sion appointed by theSindh Government saidSunday that we are here tovisit Tori Bund and otherembankments which werebreached during the superflood and have receivedthe briefing from ChiefEngineer Guddu Barrage.

The two members of thejudicial commissionappointed by the SindhGovernment to investigatethe reasons of Tori Bundbreach, are Justice (Retd)Zahid Qurban Alvi andJustice (Rtd) Ghulam NabiSoomro.

The members of theCommission talking tomedia-men at Tori Bund,Kandhkot, on Sunday saidthat they had taken an aer-ial view the site of Bundsand on October 7 and 8they will hear the eye wit-nesses who were present atthe time of breach, at DCOOffice Kandhkot.

For that purpose theyhad given advertisement in

newspapers that peoplewho have any kind ofinformation should comeforward and give a state-ment and proofs.

They also said theywould gather/ collect evi-dences and compile areport which would be pre-sented to the SindhGovernment.

Before this theCommission was briefedby Chief Engineer GudduZafarullah Mahar, whosaid that due to unprece-dented and unexpectedincrease of water the ToriBund was over-topped at3pm on August 7.

He said from August 3 to7 there were uninterruptedrains of 124mm dailywhich weakened theembankments.

He said if one observesthe record of water at vari-ous rivers and barrages itwould be proved that thiswas the biggest flood everseen in the history whichlasted for 20 days as asuper flood.

He said that the record offlood shows that water wastwo feet high at right bankof the river than left bankthat is why Tori Bund wasover-topped.

He further said that allthe forecasts of Irrigationexperts who had predicted8 hundred thousand cusecswater flow had gonewrong.

They will hear the eyewitnesses whoever werepresent at the time ofbreach but water exceededeleven and half hundredthousand cusecs.

Chief Engineer GudduBarrage said the situationworsened further whenthere was difference of250,000 cusecs out flowbetween Guddu andSukkar Barrages and waterpooled between them.

At that time Col Tariq ofFWO, DCO Kashmore-Kandhkot Saeed Jumaniand DPO Kashmore-Kandhkot and officerswere also present on theoccasion.-APP

Judicial members visit Tori Bund,embankments

LAHORE: Chief of Awami MuslimLeague (AML), Sheikh Rasheed Ahmadhas said the economy of the country ishaphazard and could be base of insur-gency if not handled in proper manner.

Talking to Online here on Sunday, theAML chief stated that all the crops acrossthe country had been destroyed, whichwill show consequences with the passageof time. He asked the authorities to collectthe data for assessing the level of destruc-tion of the torrent floods to make the reliefoperation successful and transparent.

Sheikh Rasheed said the donors agen-cies across the globe distribute the com-pensation funds through the sub-institu-tions rather direct relief to the affectedpeople. He said that the internationalcommunity had provided half money asannounced for the disastrous people.He opined that only United States,

Saudi Arabia, and Turkey whole heart-edly supported the country in the test-ing time.

To a query, he stated that Mian NawazSharif had played good politics in thename of commission for the flood affectedpeople as PPP was in loss in both condi-tions. No one is derailing the system as thepresent government is being sinking itself.

Replying to a query, Sheikh Rasheedsaid that the country could not bear themartial law, adding army is respectableinstitute which had revived its integrity.He said that the army should not comeinto the politics. Replying to a question,he added that everyone has right to launchpolitical party including Musharraf, how-ever it is not suitable time for him. Hestated that former president PervezMusharraf should have to wait for partici-pating in the politics.-Online

Recession may spurmilitancy: Rasheed

Staff Reporter

KARACHI: Senior jour-nalist of The FinancialDaily Jamil AhmedSiddiqui has lost his life ina road accident Saturdaynight while he was on hisway back to home.

According to eye wit-nesses, Jamil Siddiqui wascrossing Tariq Roadaround midnight when avehicle smashed him. Hewas immediately taken tohospital where he suc-

cumbed to injuries.SHO Ferozabad Rao

Khalid, who was presenton the spot, apprehendedthe car-driver.

Jamil Siddiqui leftbehind a son and widow tomourn his death.

Jamil Siddiqui - a jour-nalist for 40 years - wasassociated with TheFinancial Daily in thecapacity of staff reporterwhere he mostly coveredbusiness happenings of thecity.

The news of JamilSiddiqui's death wasspread instantly among thejournalist community, andpeople from all walks ofthe life have expressedtheir grievances and con-dolences over this sadincident.

His funeral prayer wasoffered at Masjid-e-Rehmania on Sundaywhere a large number ofpeople including friends,traders, and representa-tives of business commu-

nities attended the funeral.Editor, The Financial

Daily Shakeel H Jafri,Executive Editor ManzarNaqvi, Senator AbdulHaseeb Khan, former pres-ident KCCI Siraj KassamTeli, S M Munir, Ateeq-urRehman, Ilyas Shakir,Mukhtar Aqil, MunirSultan, Babar Chughtai ofABAD and many otherprominent city figures alsoattended the funeral.

Karachi Chamber ofCommerce and Industry,

Federal of PakistanChambers of Commerceand Industry, KarachiAssociation of Trade andIndustries and other trad-ing organisation haveexpressed their condo-lences of the demise ofJamil Siddiqui.

In his condolence whiletalking to TFD, formerchairman KCCI commit-tee for banking andfinance Ateeq-ur-Rehmanprayed that may thedeceased rests in peace.

TFD mournsJamil Siddiqui

KARACHI: SindhMinister for WomenDevelopment, TauqeerFatima Bhutto said com-prehensive planning isneeded to effectively exe-cute all ongoing projects.

The provincial Ministerwas speaking at a meetingwith newly appointedSecretary, WomenDevelopment Department,Liaquat Randhawa andother concerned officials,said a statement issued onSunday.

Tauqeer Fatima Bhuttodirected the officials toutilise all availableresources to resolve theproblems of the rural andurban women populations.

He said the ongoing

awareness campaign forthe women be carried outin more effective manners.

She also directed toorganize seminars to createawareness among womenabout their rights.

The Minister furthercalled for holding festivalsand "Meena Bazars" togenerate employmentopportunities for thewomen associated with thesmall/domestic industrialunits.

She said monthly meet-ings of the WomenDevelopment Departmentbe also convened to reviewthe progress on the ongo-ing projects of the depart-ment so as to achieve thedesired targets.-APP

Minister urgeson planning

ISLAMABAD: ThePlanning Commission ofPakistan in collaborationwith the Ministry ofWater and Power andmulti-donor agencies willarrange a two-day work-shop on 'Power SectorReforms' here fromtoday.

The PlanningCommission deputychairman and secretary,National Electric PowerRegulatory Authority

chairman, Water andPower DevelopmentAuthority (Wapda) chair-man, water and powersecretary, chief executiveofficers of power genera-tion and distributioncompanies, representa-tives of donors, privatesector, Pakistan Powerand Infrastructure Boardand academia will partic-ipate in the workshop andaddress the participants.-NNI

Power Reformsworkshop today

MONRDAYTime Programmes8:00 Agenda 360 (Rpt)

9:00 News

9:15 Pehla Sauda

10:00 News

10:15 Bazaar

11:00 News

11:05 Ghar Ka Kharch

12:00 News

12:15 Bara ka Para

13:00 News

13:15 Power Lunch

14:00 News

14:30 Mang Raha Hay Pakistan

15:05 Akhri Sauda

15:30 Bazaar

16:00 News

16:05 Tesri Nazar

17:00 News

17:05 Ghar Ka Kharch

18:15 Karobari Dunya

19:00 News

19:05 Tax Time

19:30 Uff TV (Rpt)

20:00 News

20:05 Islamabad Say

21:00 Pakistan Aaj Raat

22:05 Doosra Pehlu

23:00 News

23:15 Karobari Dunya

0:00 Agenda 360 (Rpt)

PPAFexpands

reliefactivities

LAHORE: PakistanPoverty Alleviation Fund(PPAF) has adopted a com-prehensive strategy to copewith the devastation causedby recent floods in Pakistanand it has expanded itsactivities to 132 unioncouncils in 22 districtsacross the country.

According to a PPAFsources here on Sunday,PPAF is carrying out reliefoperations through 20 part-ner organizations.

PPAF has so far distrib-uted 1.8 million kg fooditems and 40,000 liters ofmilk among 111,000 floodaffected people in KhyberPakhtunKhwa, Sindh andPunjab.

The PPAF set up 105medical camps in differentflood-hit areas where over57,000 patients have beentreated. As many as 4,936packets of ORS were pro-vided to the affected peopleof Nowshera and Ghotkiand 140 hand pumps wereinstalled in Dera IsmaelKhan, Muzaffargarh andGhotki.

The Fund provided fod-der to more than 70,000animals, 1200 animalshave been vaccinated whiledrenched bottles have beenprovided for 2,000 ani-mals.-APP

25 dacoitsarrestedduring 2-mth

KARACHI: Sindh Policebusted total 25 notoriousdacoits and 1346 accusedinvolved in serious offencesduring Aug to Sept, fromthe Sindh province.

Though a heavy contin-gent of Sindh police wascoordinating with the localadministrations in activitiesof rescue, relief and resettle-ment of flood victims butpolice also marked a historyby apprehending notoriousdecoits, said a police state-ment issued on Sunday.

It said out of 1346accused, 1290 fromKarachi, 52 from Sukkurwhile four were apprehend-ed from Hyderabad district.

Total 18 of the arresteddacoits beard Rs 0.5 mil-lion, each and seven ofthem carried Rs0.3 million,each head-money, fixed bythe Sindh government.

The statement pointed outthat all of the arrested noto-rious dacoits were wantedin hundreds of cases regis-tered under serious chargesof terrorism, robberies andabduction for ransom.

It also said the perform-ance of police departmenthas improved due to profes-sional approach and leader-ship quality of InspectorGeneral of Sindh Police,Sultan Salahuddin BaberKhatak.

Accused identified asMuhammad Ishtiaq andSyed Abu Irfan, allegedkillers of DSP MuhammadNawaz Ranjha, were arrest-ed from Frere here. Anotheralleged decoit, Tariq Noorwas killed in a policeencounter at Quaidabad.

Police also arrestedaccused Irfan Soomro,Javed Khalid, Abdul Rab,Muhammad Salman, AbdulNabi and Abdul Bari fromthe limits of Police StationSachal.

The kidnapping-for-ran-som accused, Shahid AnwerBaig and Zia-ur-Rehmanwere arrested while theabductee child, Hassan wasalso recovered by thePolice.-Online

KARACHI: Picture shows newly inaugrated ‘Food Street’ near Jinnah Bridge. Thisplace offers a fantabulous recreation opportunity for Karachiites.-Staff Photo

Senior report of The Financial Daily killed in road accident onSaturday. Pictures show his funeral prayers being performed atMajid-e-Rahmania while various prominent personalities from

media and business fields present on the occasion. Photos S Imran Ali

Staff Reporter

KARACHI: Minister forLaw and ParliamentaryAffairs Dr Babar Awanoffered fateha for SeniorReporter The FinancialDaily, Jamil Siddiqui, atKarachi Press Club hereon Sunday.

A collective prayer wasoffered to remember thelate reporter, huge numberof reporters and mediapersonals took part in theprayers at the press club.

Dr Babar Awan extend-ed his condolences to

Jamil Siddiqui's family,workmates and colleaguesin the industry. He alsopraised Jamil for the hardwork throughout hiscareer. Babar was of theview that the deceasedwas a true professionaland performed his dutiesto utmost of his ability.

He said that media haslost a truly courageousindividual whose braveryand determination servedas an inspiration for otherjournalists in similar cir-cumstances across theindustry.

Fateha offeredat Press Club

n Businessmen, traders, journalists express grief and condolences

n Jamil Siddiqui was working as Senior reporter at "The Financial Daily"

n The deceased was veteran journalist with 40 years of experience

n Police has arrested the alleged driver

3Monday, October 4, 2010

BANKOK: Asian currencies completed a fifthweekly advance, the longest winning streaksince March, as global funds pumped moremoney into Asian assets to profit from theworld's fastest economic growth.

Asian Development Bank last week raised its2010 growth forecast for Asia excluding Japanto 8.2 per cent, from an April estimate of 7.5 percent. Data last Friday showed manufacturing inChina, the biggest buyer of exports from SouthKorea, Taiwan and Thailand, expanded inSeptember at the fastest pace in four months.

South Korea's won led gains with a 2.2 percent weekly jump to 1,130.45 per dollar inSeoul. The Thai baht and India's rupee were thenext best performers, advancing 1.6 per cent to30.22 and 1.5 per cent to 44.60, respectively, asof 4:38 p.m. in Hong Kong.

China's purchasing managers' index rose for asecond month in September and by more thanhad been predicted in a survey, the nation'slogistics federation and statistics bureau said.South Korea reported 17.2 per cent growth inexports for last month, more than the 15.7 percent gain forecast in a separate poll.

The won on Friday touched a four-monthhigh of 1,130.03 per dollar after a report show-ing the fastest inflation in 17 months stokedspeculation the central bank will raise interestrates in October. Consumer prices rose 3.6 percent from a year earlier in September, morethan the 2.9 per cent increase forecast in a sur-vey of economists.

India's rupee advanced to its strongest level inalmost five months after the central bank said ina report on Thursday the capital account had asurplus of $17.5 billion in the three monthsthrough June, more than offsetting a shortfall of$13.7 billion in the current account.

Taiwan's dollar hit a two-year high of $31.066versus the greenback after the central bankraised its benchmark interest rate by 12.5 basispoints to 1.5 per cent. The currency rose 1 percent from a week ago to NT$31.31.

Elsewhere, Malaysia's ringgit advanced 0.3per cent last week to 3.084 per dollar, contribut-ing to an 11 per cent gain for 2010. TheSingapore dollar added 0.8 per cent toS$1.3142 and Indonesia's rupiah rose 0.4 percent to 8,918. -Agencies

Asian currencies

Mostly gain for 5th wkon China data, inflows

Spec’s risesbets againstUSD: CFTC

NEW YORK: Currency specu-lators' bets against the dollarswelled to $22 billion in the lat-est week, the largest value sinceat least mid-2008, data from theCommodity Futures TradingCommission showed on Friday.

The value of the dollar's net shortposition rose to $22 billion in theweek ended Sept 28, compared to anet short of $14.21 billion the pre-vious week, according to Reutersand CFTC calculations. That wasthe largest bet against the US cur-rency since at least June 2008.Most of the move came fromspeculators' bets in favor of theeuro, which rose nearly seventimes on the week to 35,330 con-tracts from 5,097 contracts theprior week. That was the largestnet long euro position since atleast October 2009, according toReuters calculations.-Reuters

NEW YORK: Traders havebeen happy to sell the dollarfor fear the Federal Reservewill soon pump more moneyinto the economy, and thetrend should continue thisweek unless data providessolid evidence of an economicrenewal.

First among equals will beFriday's employment report.The median estimate in aReuters poll calls for a 75,000gain in private sector jobs inSeptember but no change inoverall employment and a risein the jobless rate to 9.7 percent from 9.6 per cent.

Whether the rise in privatepayrolls will be enough toshake market suspicions thatthe Fed will renew purchasesof Treasury and mortgage-related bonds is far fromclear. But with US yields hov-ering near record lows, theincentive to hold dollarsremains weak.

Fed policymakers them-selves have certainly not saidmuch to change the market'smind. On Friday, New YorkFed President William Dudleysaid the current level of unem-ployment and inflation were"unacceptable" and said somesort of action would probablybe necessary if the outlookdoesn't improve.

Even simply respectableeconomic reports "are notgoing to provide the dollarwith support in the face of pol-icy paralysis in Washingtonand pending quantitative eas-ing," said Joseph Trevisani,chief market analyst at FXSolutions.

The euro has rallied for thepast two weeks, adding some7 per cent against the dollar,and analysts say there's stillscope for upward moves.Speculators remain only mild-ly long the currency, while the$1.3895 area, the 61.8 percent retracement of the euro'sNovember-to-June decline, isbarely more than a cent awayand should exert a steadyupward pull.

EURO RISKS,

WATCHING YEN

Brown Brothers Harrimanstrategists suggested remain-ing long above $1.3050 withan eye on the $1.40 level overthe next month.

CitiFX strategists also likethe euro to hit $1.40, thoughthey say the size of the rallyand questions about howaggressive the Fed will be if itlaunches a new round of assetpurchases mean the pace ofeuro gains should slow there-after.

Also of interest to investorswill be developments inindebted euro-zone countries.Ireland said last week it mayhave to spend 50 billion euros($68 billion) to bail out dis-tressed banks, a scenario thatwould require more drasticbudget savings.

Yet analysts said interestrate differentials and thedebate on quantitative easingare exerting more influence onexchange rates.

"I'm not playing down theproblems they have, but thefear factor is gone." said AxelMerk, president and chiefinvestment officer of Palo

Alto-based Merk Investments."We know the EU will helpanyone who needs help butwill impose tough terms."

Selling the dollar against theyen is more complicated, ana-lysts said. Japan sold yen inmid-September, its first inter-vention in six years, when thecurrency hit a 15-year highagainst the greenback. But theresulting dollar gains fadedquickly as speculation of moreFed easing grew.

"The yen has been one of theharder currencies to trade forthe last few months," saidJohn Doyle, strategist atTempus Consulting inWashington. "But our thinkingis that if they intervened once,what's to keep them fromdoing it again?"

Dollar weakness may be at apeak against the Australiandollar, which hit a two-yearhigh last week and is just threecents away from parity,Brown Brothers Harrimansaid. Moreover, the currentspot rate is some 8 per centabove its 200-day movingaverage.

High interest rates, proximi-ty to China and Australia's sta-tus as one of the world'sbiggest producers of gold,which is trading around recordhighs, have boosted the Aussiecurrency.

"Overall, the Australian dol-lar continues to look overval-ued," Brown Brothers strate-gists wrote in a research note,"but as Keynes once suggest-ed, 'markets can remain irra-tional longer than you canremain solvent.'" -Reuters

Greenback weekly outlook

Fed outlook has dollarfacing uphill climb

NEW YORK: Oil prices rose 2per cent on Friday, posting theirbest percentage weekly gain innearly 7-1/2 months as the dol-lar slumped and China postedstrong economic data.

Oil investors shrugged offmixed US economic data,including a report showing thepace of growth in the US manu-facturing sector slowed inSeptember.

US crude for November deliv-ery rose $1.61 to settle at $81.58a barrel, just under its intradaypeak of $81.66, a seven-weekhigh.

Oil rose 6.65 per cent for theweek, its best weekly gain sinceprices rose 7.66 per cent in theweek to Feb. 19. On Thursday,it closed the third quarter withits largest percentage gain since

the last quarter of 2009.ICE Brent November crude

rose $1.44 to settle at $83.75 abarrel.

"The dollar weakness and thebelief there will be more quanti-tative easing by the FederalReserve are pushing (crude oil)prices up," said GeneMcGillian, analyst at TraditionEnergy in Stamford,Connecticut.

Data showing revived growthin China's manufacturing sectorlifted oil prices early on Friday.China's official purchasingmanagers' index rose to 53.8 inSeptember from 51.7 in August,well above the median forecastof 52.0 in a Reuters poll ofeconomists.

Further support came as astrike at France's top oil port

that has squeezed supplies torefineries entered a fifth day andspread to other ports, boostingfuel prices across Europe.

The Institute for SupplyManagement said its index ofUS factory activity fell to 54.4last month from 56.3 in August.

US data was mixed on Friday.Construction spending roseunexpectedly in August, whileSeptember consumer sentimentimproved slightly but remainedat its weakest level in more thana year.

In the week to Tuesday,money managers increased netlong crude oil positions on theNew York MercantileExchange, according to datareleased by the CommodityFutures Trading Commission onFriday. -Reuters

Oil rises 6pc on week,the most since Feb

NEW YORK: Cotton futuresslid on Friday, closing 3.8 percent lower as profit takingbrought the price below $1 apound and through key sup-port levels that set off auto-matic sell orders, brokerssaid.

Relatively light volumesmeant the market lacked buy-ers as speculators rushed toexit positions taken earlier thisweek as the market hit a 15-year high above the key $1 perlb level.

ICE Futures US benchmarkDecember cotton contracttumbled 3.83 per cent to enddown 3.90 cents at 98.02 perlb. The contract slid as low as97.92 cents from a sessionhigh at $1.0278 per lb.

Volume traded in Decembercotton futures came to 13,169lots on Friday, down from17,413 lots on Thursday.

In the run-up to quarter end,speculators had chased theprice up to $1.0640 per lb, ahigh last seen in 1995. Cottonclimbed more than 33 per centduring the third quarter, itsbiggest quarterly rise since1994, Thomson Reuters datashowed.

As the new quarter began,however, some of those play-ers decided to book profitsdespite healthy manufacturingdata from China overnight anda strong cotton export reportissued by the US Departmentof Agriculture on Thursday.

Noting that cotton had ral-

lied sharply from last week'slow to this week's high, MikeStevens, an independent cot-ton analyst in Mandeville,Louisiana, said the drop belowthe nine-day average at$1.0112, and a gap low leftfrom last week's rapid ascent,indicated a change in momen-tum.

He added that cotton priceshad not closed below the nine-day average since they beganclimbing up from the July 20floor at 72.96, their lowestsince February.

Friday's close below the gapopening at $1.0028 from lastweek also indicated a momen-tum shift. Both events trig-gered more automatic stop-loss sell orders.-Reuters

NY cotton sheds 3.8pc

NEW YORK/LONDON: ICEraw sugar futures closed loweron Friday as pressure spilledover from Thursday's 5.7 percent sell-off, though logisticalproblems in top grower Brazilcontinued to underpin prices.

Trading was choppy in thesoft commodity complex on thefirst day of the fourth quarter,with cocoa and arabica coffeealso ending lower.

On Thursday, raw sugar endedthe third quarter up 46 per centand was the top performer onthe Reuters-Jefferies CRBindex. But dealers said the mar-ket could be volatile over thecoming months as consumersbuy on a hand-to-mouth basis.

ICE March raw sugar futureseased 0.12 cent to finish at23.36 cents, finishing the weekdown 4.3 per cent followingend-of-the-quarter profit taking.London December white sugarfinished up $3.10 at $620.10 pertonne.

A long queue of ships waitingto load sugar in top growerBrazil, combined with adverseweather there and in other pro-ducing nations, continued togive the market a bullish out-look.

ICE cocoa traded lower onnervous long liquidation follow-

ing Thursday's volatile sessionthat saw the market fall $200within one minute, traders said.

Liffe cocoa also eased underpressure from a strong poundagainst the dollar.

ICE December cocoa dropped$31, or 1.1 per cent, to close at$2,783 per tonne. Liffe Marchcocoa traded down 43 pounds tosettle at 1,886 pounds a tonne.

Coffee markets were mixed asrainfall in Brazil eased concernsthat the flowering phase of thecrop could be hindered by dryweather. Dealers said trees willstill need more rain to ensuresufficient moisture for uniformflowering.

Arabica coffee futures tookstrength early from higher equi-ty markets, then turned lower asUS stocks felt pressure from theISM manufacturing report thatshowed a slowdown in manu-facturing last month, traderssaid. ICE December arabicacoffee futures eased 1.95 cents,or 1.1 per cent, to settle at$1.8110 per lb. Liffe Novemberrobusta coffee finished up $3 at$1,725 per tonne.

ICE arabicas have outpaced therise in Liffe's robusta coffee in thethird quarter, with arabica coffeeup 11.5 per cent versus a 0.5 percent rise in robusta. -Reuters

Sugar extends losses;coffee, cocoa slip

US cornlimit down;soy plunges

CHICAGO: US corn futuresdived by the daily limit onFriday, plunging 6 per cent in asecond day of near-record vol-ume after data showing surpris-ingly high US stockpiles causedspeculators to sprint for the exit.

Corn finished with a 10.7 percent weekly loss in a selloff thatalso cut down soybeans by morethan 4 per cent, their biggest one-day fall in more than a year.

Wheat dropped nearly 3 percent to its lowest level in twomonths, pressured by slidingcorn as well as rain in Russia thatlifted hopes for the winter crop.

"We're seeing liquidation andtechnical selling," Citigroup ana-lyst Mario Balletto said of theweek's sharp reversal across thegrains complex, which broughtthe biggest weekly decline forcorn and wheat since January.

CBOT December deliverycorn fell the 30 cents per busheldaily trading limit to $4.65-3/4,its biggest daily fall since Jan.12, the same day that the USDAhad released another bearishreport. It fell 10.7 per cent for theweek.

November soy was down 49-3/4 at $10.57 and Decemberdelivery wheat was down 19 at$6.55.-Reuters

China datapowers copper

to 2-yr highNEW YORK/LONDON:Copper rose for a third straightweek on Friday, pushing up toits highest level in more thantwo years, after strong manu-facturing data from China rein-forced a healthier demand out-look from the world's largestconsumer of industrial metals.

Copper for December deliv-ery on the COMEX metals divi-sion of the New YorkMercantile Exchange rose 3.90cents, or 1.1 per cent, to end at$3.6905 per lb, the highest levelon a closing basis for the thirdposition futures contract sinceJuly 22, 2008.

On the London MetalExchange (LME), benchmarkcopper was untraded at theclose but last bid at $8,095 atonne, compared withThursday's last bid at $8,010 atonne.

Earlier, it touched $8,178 atonne, a gain of about 35 percent since early June and itshighest since July 2008.

"I really think this has been aheavily demand-driven rally,and it looks like there is more tocome," said Bill O'Neill, partnerof LOGIC Advisors in UpperSaddle River, New Jersey.

"The Chinese numbers werevery good. They have managedto maneuver into slowing cer-tain things down while keepingtheir economy strong," he said.

Copper hit a record high of$8,940 a tonne in July 2008 onexpectations of a large deficit.

ICSG upped its 2011 deficitforecast for the global refinedcopper market to 400,000tonnes from an April estimateof a 240,000 tonne surplus.

Stocks of copper in LMEwarehouses have tumbled morethan 30 per cent to 373,800tonnes since the middle ofFebruary.

Aluminum closed at $2,360 atonne from $2,351 at the closeon Thursday. Tin rallied $650to end at $24,900 a tonne, wellwithin striking distance of itsall-time high of $25,500, hit inMay 2008. Nickel closed up$400 at $23,800, zinc gained$34 to $2,229 and lead rose $16to $2,295. -Reuters

NEW YORK: Gold extendedits record-breaking rally to asixth straight day on Friday, ris-ing near 1 per cent as commentsfrom Federal Reserve officialsand US data reinforced expecta-tions of further monetary eas-ing.

The dollar fell to a six-monthlow versus the euro after NewYork Fed President WilliamDudley said more Fed action toboost growth will likely beneeded if the economic outlookdoesn't improve. Data showingUS manufacturing growthslowed and inflation remainedsubdued in August aided thecase for more monetary policyeasing.

The rally carried over to theother more volatile preciousmetals that outpaced gold'sgains, with silver rising nearly 2per cent to its highest since1980 and platinum to a four-month peak.

Spot gold scaled an all-timehigh of $1,320.80 an ounce andwas up 0.8 per cent $1,316.35an ounce at 1816 GMT. US gold

futures for December deliverysettled up $8.20 at $1,317.80.

Bullion was 1.5 per cent high-er for the week, posting itsbiggest three-week rally sincemid-May.

Gold rose 6 per cent in thethird quarter, its eighth consecu-tive quarterly gain, with dealerssaying the two-year rally lookedresilient on the growing beliefthat the Fed will decide nextmonth to pump billions of dol-lars into the economy throughbuying government debt, orquantitative easing.

US data also showed bothconsumer and constructionspending rose more than expect-ed in August, but investment inprivate projects fell to its lowestlevel in more than 12 years.

With analysts expecting theUS dollar to extend losses to theend of the year, gold is expectedto benefit from demand as analternative currency.

Gold looks poised to testabove $1,500 an ounce overthe next three months, support-ed by bullish wave pattern and

a Fibonacci projection analy-sis, a Reuters technical analystsaid.

Holdings of the world'slargest gold-backed exchange-traded fund, New York's SPDRGold Trust, dipped however byjust under 1 tonne to 1,304.776tonnes.

Silver hit a 30-year high at$22.15 and was trading up 1.6per cent at $22.04 an ounce.The metal has outperformedgold this year, rising 30 per centagainst gold's 20 per centclimb.

The gold-to-silver ratio,which shows how much silveran ounce of gold can buy,slipped below 60, its weakestlevel since January. However,UBS analyst Edel Tully said in anote that silver may be morevulnerable to a near-term cor-rection than gold.

Gold's strength lifted plat-inum to a 4-1/2 month peak at$1,684.50. It rose 1.4 per cent to$1,674.50 an ounce, while pal-ladium gained 0.6 per cent to$567.50. -Reuters

Gold gains for 3rd weekon monetary easing hopes

TORONTO: Canada's dollarrose to its loftiest level in eightweeks against the US currencyon Friday, as the greenback slidon comments by a US FederalReserve official that raisedexpectations of a further easingof monetary policy.

The Canadian dollar soared ashigh as C$1.0188 to the US dol-lar, or 98.15 US cents, itsstrongest level since Aug. 6, asthe US currency tumbled to a sixmonth low against the euro.

The greenback fell afterWilliam Dudley, president of theNew York Fed, said more actionby the central bank to boostgrowth will likely be warrantedunless the outlook improves.

The currency ended the day atC$1.0205 to the US dollar, or 97.99US cents, comfortably higher fromThursday's finished at C$1.0290 tothe US dollar, or 97.18 US cents.

The Canadian dollar was up 0.5 percent for the week.

The weaker US dollar aidedoil and gold prices higher,another area of support for theCanadian currency.

Also supportive of theCanadian currency were gains inequity markets, boosted in partby Chinese manufacturing dataand some US economic reports.

However, Jack Spitz, manag-ing director of foreign exchangeat National Bank Financial,noted the domestic currency hasrecently lagged against majorcrosses on lowered marketexpectations the Bank of Canadawill hike rates in October.

Markets are pricing in an 89per cent probability the bankwill hold rates steady on Oct.19, based on a Reuters calcula-tion using overnight indexswaps.-Reuters

Canadian $ log gainsfor wk as USD slides

US employment report highlight on data calendar

Yen intervention a risk, Aussie dollar looking stretched

Silver hits 30-yr peak, platinum at 4-1/2 month high

Sterlingrises againstyen, USD asstock surges

LONDON: The pound roseagainst the dollar and the yen,fueled by gains in stocks andsigns the global economic recov-ery is being sustained.

The pound also strengthenedagainst 11 of 16 most active cur-rencies as a report showedChina's manufacturing expandedat the fastest pace in four monthsin September and Fitch Ratingsboosted its growth forecast forthe UK.

"The data from China suggeststhat perhaps the pessimism inthe market about the globaleconomy has gone too far," saidJane Foley, a senior currencystrategist at RabobankInternational in London. "Itinjects some risk appetite intothe market, and the pound reactspositively to that."

The pound climbed 0.7 percent against the dollar to $1.5821at 4:44 p.m. in London. Sterlingjumped 5.2 per cent in the thirdquarter, its biggest three-monthgain since the period ended June2009. It traded 0.4 higher againstthe yen at 131.77.

Further gains in the poundmay be limited. The currency isheaded for a weekly loss against15 of the 16 most active curren-cies on speculation that the Bankof England will soon resume itsbond-purchase program to sup-port the economy. The so- calledquantitative easing may under-mine sterling as it's seen as infla-tionary.

Policy maker Adam Posen saidlast week that Bank of Englandofficials should discuss morebond purchases. The BritishChambers of Commerce, alobby group representing100,000 companies, gave itsbacking to Posen's idea.

The pound has fallen 4.6 percent against developed-world cur-rencies so far this year, accordingto Correlation- WeightedCurrency Indices. -Agencies

Disclaimer:All reports and recommendations have been prepared for your information

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information should only be used by investors who are aware of the risk inher-

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presented have been obtained from sources believed to be reliable, but their

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International and its employees are not responsible for any loss arising from

use of these reports and recommendations.

Attention,Mr KardarSpeaking at a roundtable discussion on

“Damage Assessment of Floods andImplications for the Financial Sector”Governor State Bank of Pakistan, ShahidHafiz Kardar said the central bank is cog-nisant of the adversity and has taken initia-tives to assess the damage from floods andencourage the use of best practices in theinterest of long-term development of thefinancial sector on sustainable basis anchoredin inclusion and better financial services.

Kardar was also of the view that the recentfloods, the biggest natural calamity inPakistan's history, provide an opportunity forthe banks to increase financial inclusion,diversify their products on sustainable basisand play due role in rebuilding the economy.

It will be appropriate to remind the governorthat bulk of Pakistan's population does nothave access to formal banking. They not onlyhave to borrow from informal channel buthave to pay higher interest rate. In case of anynatural calamity, the borrowers have to facedouble the trauma. On one hand the earningsassets get destroyed and on the other handthey have to face blood-thirsty lenders, whodon't have any recourse except to recoverwhat they have lent.

Three of the segments, which do deal withbanks i.e. farmers and micro and small enter-prises face the tyranny. Completing the for-malities is neck-breaking and even if a fewsucceed in getting the funds the amounts areminuscule but interest rates are mighty.Therefore, most of the small borrowers con-sider banks as akas bail, which kills the treeit lives on, ultimately.

The governor may also be aware of the factthat worst hit by the floods are the farmers.Out of a total sum of Rs200 billion outstand-ing in the names of farmers, roughly less thanone-third enjoys credit insurance. Therefore,either the banks will have to completely writeoff the loans or remain content with whateveris paid off by the borrowers. Since the discre-tion would be of the bankers, the probabilityof corruption is very high.

The governor may also be aware of the factthat it is only a small percentage of popula-tion which enjoys access to credit from thebanks. Biggest beneficiaries are mostly con-glomerates, multinational companies and topPakistani groups. They not only avail crediton very soft terms but also have the largestshare in non-performing loans. But there is anold saying that shows the dark side of thisone-sided game, it goes as: the bigger the bor-rower the higher the delinquency risk.

If SBP governor is serious in implementingfinancial inclusion programme, then he willhave to rewrite prudential regulations, changethe mindset of bankers and above all makethem realise that every customer no matterhow big or small has to be treated nicely. It isthe only way in the right direction.


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The Financial Daily InternationalVol 4, Issue 60

Bilal Zubair

Arecent report published in anEnglish daily point out that themilitary pensions are not

included in the annual defence budgetand paid under Federal budget.According to the report "three millionretired armed forces personnel weregetting Rs72billion annual pensionunder civilian head as against Rs18 bil-lion paid to half a million retired civil-ian employees". The report also illus-trates that the pension of retired mili-tary personnel has risen from Rs26 bil-lion in 2001 to Rs72 billion in 2010.However, the report felt short of givingany comparison of this trend in neigh-boring countries or the drawbacks ofsuch trend in the defence budgetingsince similar exclusions are commonfor other military ventures generallyassociated with defence spending.

The trend of segregating the pensionsfrom the Aggregate DefenceExpenditure is not new in this region.In India, since 1985 the military pen-sions are no more a part of overalldefence spending. According to PavanNair "India excludes the cost ofdefence pensions, paramilitary forcesand the defence ministry from the bud-geted defence expenditure" amountingto Rs12,452 Crores. Similarly, in Chinathe pension of armed forces personal isexcluded in the overall allocation toarmed forces. Pakistan is following thepractice of separating the military pen-sion bill since 2000. Neither in Chinanor in India any objection whatsoeverhas been raised on this practice as ittends not to make any burden on theexpenditures incurred on the annualmilitary spending.

As mentioned earlier, many coun-tries do not treat various military ven-

tures in defence budgeting. Accordingto Sean Chen and John Feffer "the US

Pentagon budget does not includemost of the spending on nuclearweapons, which falls under theDepartment of Energy budget". Sameapplies to the defence spending inchina where procurement of weaponsfrom abroad, expenses for paramili-taries, nuclear weapons and strategicrocket programs, state subsidies forthe military-industrial complex, somemilitary-related research and develop-ment, and extra-budget revenue arenot included in the official militarybudget. Many other European andLatin American countries are also fol-lowing this practice.

Recently, there has been a consider-able increase in Pakistan's defencebudget. This growth in military spend-ing was due to increasing salary andbenefits to servicemen, compensatingfor rising prices, improving living stan-dards and an attempt to modernizingthe military. Consequently, the rise inthe military budget is an endeavor tomodernize and provide better services

for the military personnel.The armed forces of Pakistan com-

prise of threes e r v i c e s(Army, Navy,Air force) and18 InterS e r v i c e sOrganisations(ISO) thatincludes ISI,POF, HIT,PMO, JSHQ,and institu-tions like AFIPand AFID etc.By comparisonthe employees(uniform andc i v i l i a n )

retired from Pakistan military are byand large much greater than in numbersthen those of civilian. This differenceoccurs due to the number of militaryofficers (Major/Colonel) reaches theage of retirement between 40 to 45years. Whereas, their counterparts incivilian department continue to serve,get extra emoluments and promotionsand retire at the age of 60. Similarly,Jawans in Pakistan army are enrolled invery young age and retire at the agebetween 36 and 38. This increases theliabilities on service men when theresponsibilities relating to their chil-dren and parents are at its peak.

Likewise, it is highly pertinent tomention that the loss of life and disabil-ities associated with army personnelhas no comparison with any other job.The causalities and disabilities are verycommon in defence related jobs. Thepensions are thus vital to rescue thefamily of those who suffered with theirlives for their nation. Thus, pension isan essential component of the compen-

sation for the services rendered to thestate and nation.

This increase in military pensions isjustified because of considerabledepreciation of rupee. In 2000 a dollarcost Rs53 where it costs Rs86 in 2010.Likewise, military budget hasincreased in the backdrop of growingexpenditure incurred in an attempt tomodernize the military aimed at stem-ming the growing wave of militancyand terrorism in the country.

Whereas, contributions by Pakistanarmed forces have tremendously con-tributed in nation-building and con-tributed billion of Rupees in the shapeof taxes every year. In 2009/2010 theydeposited more than Rs72 billionRupees. In addition, several Pakistanarmy organizations contributed Rs179billion in last five years in term of rev-enue/taxes. On the other hand the selfgenerating units in Pakistan likeWapda, Pakistan Railways, PIA, SteelMill etc. don't get budget but are givenshare from divisible pool and grantsrespectively. As many as 22 govern-ment corporations are running in deficitin which only Pakistan Railways facesannual deficit of Rs40 billion.

Criticising state institutions hasbecome a fashion now a days. Beingfifth pillar of state, media also has theresponsibility to unearth the weakness-es and question the flaws in govern-ment affairs and mismanagement inpublic sector entities so that faults canbe removed. However, it is highly per-tinent to understand the basic philoso-phy and subsequent rules and regula-tions under which the state institutionssuch as armed forces are governed.Defaming and maligning the armedforces could only weaken the nationalfabric and affect the moral of the troopssacrificing their lives for the country.

State Institutes:Public Punching Bags

Criticising state institutionshas become a fashion now a

days. Being fifth pillar of state,media also has the responsibility

to unearth the weaknesses andquestion the flaws in government

affairs and mismanagement inpublic sector entities so that

faults can be removed.

“

Khalida Yasmin Marwat

Pakistan TelevisionCorporation (PTV)became the very first and

the only representative channelof Pakistan when it started trans-mission on November 26, 1964from Lahore. The 1970s, 1980s,and 1990s were the goldendecades of PTV as a source ofentertainment. It produceddrama serials and teleplayswhich were considered the inim-itable not only in Pakistan butalso in India. These programsincluded serials like Khuda kiBasti, Angan Tairdha,Tanhayian, Andhera Ujala, FiftyFifty, Alif Noon, DhoopKinaray, Alpha Bravo Charlie,Dhuwan, Sona Chandi,Sunehray Din, Uncle Urfi,Bandhan, Zair Zabar to cite afew.

These dramas carried the realimage of our society and weresource of entertainment andawareness for the people as well.All the programmes were familyoriented and people of everyclass and age could enjoy and

entertain. The film industry wasalso at its peak producing peer-less movies. Unfortunately thesituation did not remain the sameand changed with the passage oftime. Cable and dish TV camethat totally altered the circum-stances. The only PTV wasreplaced by over one hundredchannels. Cable operators startedbroadcasting Indian programmesthat showed a differ-ent life style.Though, the lifestyle was unlikelybut still quite color-ful and attractive.Dramas aired byStar Plus spread likevirus in Pakistan.Regrettably theunrealistic life styleshown in these dra-mas is polluting oursocial and culturalvalues. Schools, uni-versity's cafes, busstops, family gatherings and par-ties have become the discussioncenters of Star Plus dramas. Thecountry that could not win usthrough military invasions is

now destroying us by culturalattack through its dramas andmovies.

Pakistan wants peace and har-mony with its neighbors. Weare in favor of positiveexchange but sorry not informof vulgarity because we cannotpromote bilateral relationsbased on the culture which doesnot exist in Indian society. It

was considered necessary tostop spread on this contentiousdisease because it has pollutedthe mindsets and social and cul-tural values to a point difficult

to cure. In this context, on 25thAugust 2010, a positive stepwas taken Chief justice ofPakistan, Justice IftikharMuhammad Chaudhry at abench of Supreme Court ofPakistan. This bold step was toban screening all the Indian TVchannels and showing of Indianmovies through cable networksand as well as local cinemas.

Though,the deci-sion seemsto be ab u s i n e s sdeal as it issaid thatthese chan-nels are notpaying fortheir airingin Pakistanbut what-ever therumors are,the deci-

sion is no doubt the first steptowards the blockade of Indiancultural onslaught. But it is onlya step towards to achieve thepurpose. If the government is

really serious about topping thecultural onslaught by India, itmust ban the entire influx ofIndian culture because FMradio stations are still playingIndian songs; cinemas arescreening Indian movies andthe Star Plus dramas are beingtelevised on cable networks. Sothe government should also banon the sale of such products.Along with this the governmentshould formulate an effectivestrategy to monitor the hun-dreds of cable operators work-ing through out the country.However, little can be achievedwithout the help of general pub-lic and Pemra.

Banning channels does notprovide a solution unless thequality of local production isimproved. The irony isPakistani viewers want newthemes and quality which thelocal production houses and TVchannels have not been able todeliver. The Public must alsorealise that whatever Indianchannels are showing is a cul-tural attack which has to bestopped.

Culture that Attacked Me

Bernd Debusmann

America's defenceestablishment, fromthe Pentagon to think

tanks, is trying to work outways to cut military spendingat a time of economic trouble.Proposals range from $100billion to $1 trillion. Nonetouches the underlying philos-ophy that led the United Statesto spend almost as much onmilitary power as the rest ofthe world combined.

Of the many explanations ofthat philosophy Americanleaders have offered over thepast few decades, one of themost succinct came fromMadeleine Albright, when shewas Secretary of State in theClinton administration: "It isthe threat of the use offorce…if we have to useforce, it is because we areAmerica, we are the indispen-sable nation. We stand tall andwe see further than othernations into the future…"

Since Albright made thatremark, in 1998, the USdefence budget has grownevery year, in real terms, andis now higher than at any timesince the end of World WarTwo, according to the liberalCenter for American Progress,one of the Washington thinktanks to make savings sugges-

tions. Even if the UnitedStates were to cut its spendingin half, that would still bemore than its current andpotential adversaries.

The figures are remarkable:the United States accounts forfive per cent of the world'spopulation, around 23 per centof its economic output and46.5 per cent of its militaryspending. China comes a dis-tant second, with 6.6 per centof the world share, followedby France (4.2 per cent),Britain (3.8 per cent) andRussia (3.5 per cent).

How did the United Statesget there? Because everyAmerican president sinceHarry Truman has subscribedto four basic assertions: theworld must be organised, lestchaos reigns; the US is theonly country capable of organ-ising the world; Washington'swrit includes articulating theprinciples of the internationalorder; and the world actuallywants America to lead, a fewrogue nations and terroristsexcepted.

This is the catechism ofAmerican statecraft to whichmainstream Republicans andmainstream Democrats areequally devoted, writesAndrew Bacevich, a retiredarmy colonel and prolificauthor on military matters, in

his just-published book"Washington Rules - America'sPath to Permanent War."

There's little empirical evi-dence to demonstrate the cate-chism's validity, saysBacevich, but that doesn't mat-ter. "When it comes to mattersof faith, proof is unnecessary.In American politics, adher-ence to this creed qualifies as amatter of faith. Public … fig-ures continually affirm andreinforce its validity."

President Barack Obama isno exception and has shownno sign that he differs from hispost-World War Two prede-cessors in believing it is essen-tial for America to have aglobal military presence, glob-al power projection and theright to global intervention.

Bacevich calls this thesacred trinity. It is a nationalsecurity consensus thatamong other things keepsaround 300,000 Americansoldiers stationed abroad andUS military bases in at least39 countries. Even the mostradical of recent proposals tocut military spending onlyenvisions reducing ratherthan ending the global USmilitary presence.

WASHINGTON - COR-

RUPT AND CORRUPTING

The Cold War ended in 1989and while the US presence

abroad has been thinned out,around 150,000 still remain inAsia and Europe alone, wherethey served as a high-profiledeterrent to the Soviet Unionduring the Cold War. Thatwould be capped at 100,000 ifa panel of experts commis-sioned by a bipartisan groupin Congress, led by BarneyFrank, who chairs the HouseFinancial ServicesCommittee, had its way.

The commission found thatabout $1 trillion could be cutfrom defence budgets over thenext decade without "compro-mising the essential securityof the United States." It's afar-reaching proposal, unlike-ly to get traction, but it doesnot clash with the Americancredo of global leadership.

Neither does a determinedattempt by US Secretary ofDefence Robert Gates to find$100 billion in savings overthe next five years by elimi-nating projects for futuristicweapons systems, cutting flabfrom the Pentagon's bloatedbureaucracy, eliminatingduplication and reducing"overhead," i.e. people andinfrastructure not directlyinvolved in fighting.

The $100 billion plan ismodest - US military spendingover the next five years islikely to exceed $3.5 trillion -

and does not affect the over-whelming military superiorityenshrined in official policy."America's interests and rolein the world require ArmedForces with unmatched capa-bilities," according to the2010 Quadrennial DefenceReview (QDR), a reportrequired by Congress on thefuture of US national securitystrategy.

Despite their relatively lim-ited scope, Gates's reformplans have run into fierceopposition from the heirs ofwhat President DwightEisenhower, the World WarTwo general who led USforces to victory in France andGermany, termed the "mili-tary-industrial complex" fivedecades ago.

That term, Bacevich writes,"no longer suffices to describethe congeries of interests prof-iting from and committed topreserving the national securi-ty consensus" and the moneythat lubricates American poli-tics and fills campaign coffers.

The list of beneficiaries haslengthened since Eisenhowercoined the phrase but theirbase of operations has not,which makes Washington"one of the most captivating,corrupt and corrupting placeson the face of the earth."-Reuters

US, world’s Top Military Forever?

Banning channels does notprovide a solution unless thequality of local production is

improved. The irony is Pakistaniviewers want new themes and

quality which the local productionhouses and TV channels have

not been able to deliver

“

FERTILISER000 tonnesUrea Offtake (Jan to July 10) 3,565Urea Offtake (July 10) 580Urea Price (Rs/50 kg) 879DAP Offtake (Jan to July 09) 374DAP Offtake (July 10) 49DAP Price (Rs/50 kg) 2,626

AUTOMOBILE ASSEMBLERPAK SUZUKI MOTORUnitsProduction (July 09 to June 10) 71,998

Sales (July 09 to June 10) 73,993

Production (July 10) 7,509

Sales (July 10) 4,503

INDUS MOTOR COProduction (July 09 to June 10) 50,557




HONDA ATLAS CARProduction (July 09 to June 10) 13,500




DEWAN FAROOQ MOTORSProduction (July 09 to June 10)1,218


Production (July 10) 41

Sales (July 10) 40

BANKING SECTORScheduled bank (Rs in mn)Deposit (August 20,10) 4,595,176

Advances (August 20,10) 3,304,533

Investments (August 20,10) 1,788,671

Spread (July 2010) 7.51%

OIL MARKETING CO(000 tons)MS (Jul 09 to June 10) 1,933

MS (July 10) 188

Kerosene (Jul 09 to June 10) 164

Kerosene (July 10) 15

JP (Jul 09 to June 10) 1,377

JP (July 10) 129

HSD (Jul 09 to June 10) 7,435

HSD (July 10) 664

LDO (Jul 09 to June 10) 75

LDO (July 10) 7

Fuel Oil (Jul 09 to June 10) 9,259

Fuel Oil (July 10) 869

Others (Jul 09 to June 10) 13

Others (July 10) 1

PRICES (Ex-Refinery) RsMS (1 Sep 10) 40.85

MS (1 Aug 10) 41.22

MS % Chg -0.90%

Kerosene (1 Sep 10) 47.14

Kerosene (1 Aug 10) 46.55

Kerosene % Chg 1.27%

JP-1 (1 Sep 10) 47.37

JP-1 (1 Aug 10) 46.78

JP-1 % Chg 1.26%

HSD (1 Sep 10) 50.61

HSD (1 Aug 10) 49.63

HSD % Chg 1.97%

LDO (1 Sep 10) 46.37

LDO (1 Aug 10) 45.29

LDO % Chg 2.38%

Fuel Oil (1 Sep 10) 39,932

Fuel Oil (1 Aug 10) 39,723

Sector Updates

Symbol Close Vol (mn)LOTPTA 8.46 42.10TRG 4.27 31.98BAFL 8.29 20.90SILK 3.01 19.34JSCL 9.79 13.03

Symbol Close ChangeDREL 660.00 134.50NESTLE 1,904.75 71.00LAKST 298.16 56.58SIEM 1,176.97 46.97ULEVER 4,024.95 25.97

Symbol Close ChangeMTL 425.52 -158.71FZTM 305.18 -24.07IDYM 234.20 -19.47PPP 41.30 -18.63WYETH 941.92 -10.08

Plus 211Minus 196Unchanged 16

Top 5 Volume Leaders

Major Losers

Major Gainers

KSE-100 Index

LSE-25 Index

ISE-10 Index

Active Issues

Automatic futures tradedrove May stock crash: report

Asian stocks gain for a 5th wkon US, China economic reports

Monday, October 4, 2010 5

Dhiyan

Due to uncertainty on the political front and rise in interestrate activities as dull as the ones during the floor mechanismin 2008 are likely to be seen. It seems that the government isnot interested in supporting the business activities which isdispiriting the businessmen deeply forcing capital flight.Investors are therefore recommended to adopt 'wait & see'strategy till uncertainty on the political front ends. Marketwould lack luster today.

Salman Naqvi, Head of Sales Aba Ali Habib Securities

Khurram Schehzad, Head of Research Invest CapStocks would be volatile down the line as October holds a number ofevents in store i.e., assessment report by ADB and WB after whichrevised budget would be presented, hearings on NRO, announcementof quarterly results etc. Investors are therefore counseled to hold on tothe sidelines, however, longterm investments in E&P, cement andpower sectors are recommendable. Foreign buying, inflows throughIFIs, if any, and launch of MTS would support the market. Marketmight not be next to dull today.

DULL DAY TODAY; TRADE LONGTERM

Opening 9,909.45Closing 10,042.44Change 132.99% Change 1.34Turnover (mn) 354.54



NEW YORK: As September'ssurge fades into a fond memory,the question for the US stockmarket is: Now what?

The market shook off thesummer doldrums last month,breaking out of a stubborn trad-ing range and giving investorsthe second-best September onrecord with a gain of 8.8 percent on the S&P 500. It alsoracked up its best quarter in ayear.

The strength of that momen-tum will be tested this week bya round of economic data,including the much-watchednon-farm payrolls report, aswell as the start of third-quarterearnings season. The S&P hasalso been bumping up against atechnical resistance level thatcould spark further gains if theindex breaks through it.

Trading has been in a tightrange the past week as the quar-ter wound down and the mutedaction could continue in thelead up to the employmentreport on Friday.

"People are still exhibiting alot of fear in their investmentdecisions, with so much moneyflowing into bond funds andTreasuries, that any uptick ineconomic data could catchinvestors off guard," saidMichael O'Rourke, chief marketstrategist at BTIG LLC in NewYork.

"That should help fuel a nicefourth-quarter rally in equities."

September non-farm payrolls,due on Friday, are forecast toremain unchanged after a lossof 54,000 jobs in August,according to a Reuters poll ofeconomists. However, the fore-cast range is wide, with a gainof 106,000 jobs on the upsideand a loss of 75,000 jobs on thedownside.

BREAKOUT COMING? As the bulls and bears keep

fighting over the stock market'sdirection, technical indicatorshave become more widely

scrutinized. The S&P 500 hasbeen bouncing between the1,140 and 1,150 levels, but hasfallen back from the top end ofthat range in the past six ses-sions.

While analysts have attributedsome of September's move to"performance chasing," wheregains beget more gains,O'Rourke thinks the real actionmight not happen until thefourth quarter.

"I view it more as a lot of peo-ple were sitting out the volatili-ty, waiting for a trend toemerge," O'Rourke said. "If youget that breakout above 1,150and it looks like it's a real break-out, that will give people confi-dence that a real trend hasemerged to the upside."

History is on the market'sside. A strong September usual-ly portends a positive Octoberand fourth quarter, according toBirinyi Associates Inc.

When September rises 5 percent or more, October is up, onaverage, 1 per cent, accordingto data from Birinyi. Only inone occurrence following thattype of September gain did thefourth quarter deliver a negativeresult, which happened in 1939.

KICKING OFF THE

QUARTER

Analysts will be parsing com-ments from CEOs and othercorporate talking heads as theircompanies release quarterlyresults to gauge how executivessee the recovery unfolding.Investors have become moreoptimistic over the strength ofrecovery in the last month asworries of a return to recessionhave faded.

"I'm looking for companies tosay things are not falling off acliff. They're not rapidlyimproving, but we're starting tosee this moderate, sustainablegrowth," said Kurt Brunner,portfolio manager atSwarthmore Group inPhiladelphia, Pennsylvania.

Alcoa Inc marks the unofficialstart to earnings season when itreports quarterly results onThursday. Other companiesreleasing results this weekinclude Yum Brands Inc, CostcoWholesale Corp, Monsanto Co,Micron Technology andPepsiCo Inc.

Third-quarter earnings for theS&P 500 are forecast to growby 23.8 per cent, though theestimate has shrunk slightlyfrom the 25.6 per cent that waspredicted at the beginning ofJuly, according to ThomsonReuters data.

On the economic front, pend-ing home sales and factoryorders for August kick off theweek. Pending home sales areexpected to rise 3 per cent com-pared with a rise of 5.2 per centthe month before, while factoryorders are expected to dip 0.4per cent from a gain of 0.1 percent the previous month.

The Institute for SupplyManagement's September indexfor the non-manufacturing, orservices, sector is expected toshow a reading of 52, up from51.5 the month before. The ISMservices index will come out onTuesday.

Wednesday will bring theADP report for September, aprecursor to the government'slarger employment report forthe month. The ADP data isforecast to show the private sec-tor added 22,000 jobs lastmonth.

In another glimpse of thelabor front, initial joblessclaims are expected to holdsteady at 453,000 for the latestweek, according to economistspolled by Reuters. That report isexpected on Thursday.

And finally, wholesaleinventories for August areexpected to rise 0.5 per cent,compared with 1.3 per cent themonth before. That data willcome out at mid-morning onFriday. -Reuters

After Sept rally, stockseye earnings, jobs

Wall Street weekly outlook

Nawaz Ali

KARACHI: During the lastweek spells of bullrush didmany a round at Karachi StockExchange (KSE) last weekfeeding it with 1 per cent,which was enough to help thebenchmark index sustain abovethe psychological level of10,000 points.

It was mainly the buyingspurred by the adjournment ofNRO hearing till Oct 13 andexpectations of good corporateresults that acted as the windbeneath the wings of this indexflight. However, the increase inthe SBP interest rate seemed tohave been discounted by theforces that shape the sharestrade.

The benchmark KSE 100-index gained 132 points (or1.34 per cent) to close at10,042 points, KSE 30-indexjumped by 74 points ( or 0.77per cent) to close at 9,685points and KSE all-share 86points ( or1.25 per cent) toclose at 7,016 points.

Index touched the highestlevel of 10,106 points and alowest level of 9,832 pointsduring the week.

Angela Memon, an analyst atJS Global Capital said thatinvestors chose to play safe atthe week's start, in apprehen-sion over the outcome of theNRO cases and the monetarypolicy statement onWednesday. However, theSupreme Court's eventual deci-sion to adjourn NRO imple-mentation case hearing to Oct13 had provided the marketwith a breather, though tem-porarily, she added.

She went on to say that mar-ket did not react negatively tothe 50bps hike in the discountrate as the Index remained rel-atively flat post-hike, with aslight pickup in activity.

She said the pre-result ral-lies in SSGC, POL, APL, andNRL somewhat supportedthe market. Despite higherthan anticipated resultsannounced by the same and acash payout more generousthan what brokers had beenlooking forward by POL, ral-lies in these stocks remained

short-lived and investorsbroadly chose to book profitsafter the announcements ofresults.

The week started with limit-ed positive activities onMonday where after someearly bearish activities buyingkicked in on the adjournmentof NRO case hearing by theSupreme Court therefore indexclosed the session with a gainof 27 points.

Bullish activities then contin-ued during the next two days ason Tuesday index ended 44points up on expectations ofno-change in interest rate.However, on Wednesday indexincreased by 41 points amidlow volumes as investors pre-ferred to be stick to the side-lines due to uncertainty aboutthe monetary policy announce-ment.

Following a 50bps increasein interest rate, market sawsome bearish activities duringthe early hours on Thursdayhowever good corporate resultsof Attock group of companiesand National Refinery wooedsome bulls due to which indexreduced the red numbers andended the day with a minor lossof 8 points.

The week ended on a some-what positive note on Fridaydue to buying on strong valua-tions fueled by hopes of goodresults in the coming weeks forthe quarter ended Sept 30 as aresult the index gained 29points.

Foreign investors remainedon the buying side as accordingto NCCPL there was a net for-eign buying of $4.7 million lastweek while on the local com-panies net-sold shares worth $4million.

Investor participation sawsome improvement as above354 million shares traded in theoverall market which is 62 mil-lion more than a turnover of292 million a week earlier.Average daily turnover stood at70.9 million which is 12.5 mil-lion shares higher than averageturnover of 58.4 million lastweek.

Out of total 423 active issues;211 advanced and 196 declinedwhile 16 remained unchanged.

100-Indexstays upward

course in week

Gulf stocks market

Drake &Scull helps

lift Dubai upDUBAI: Dubai's Drake andScull International rose afterBank of America-Merrill Lynchstarted its initial coverage onthe contractor's stock with a"buy" rating.

Drake and Scull gained 1.2per cent, helped lift Dubai'sindex.

"We are encouraged by theexceptional order pipelinegrowth during Q3 and expectthe trend to continue as thecompany capitalises on its inte-grated product portfolio acrossa wider geographical foot-print," BOA-Merrill Lynch saidin a research report.

On Thursday, Drake andScull said it will acquire aSaudi-based mechanical, elec-trical and plumbing company,with plans to buy another firmin the kingdom this year.

Bellwether Emaar Propertiesgained 0.5 per cent.

Dubai's index ended 0.7 percent higher at 1,695 points,while Abu Dhabi's benchmarkinched up 0.06 per cent to endat 2,675 points.

Shares in Qatari bank stocksrose, buoyed by "buy" ratingson two names in the sectorand expectations for solidearnings from Qatar NationalBank.

Doha Bank gained 1.9 percent and Commercial Bank ofQatar climbed 1 per cent. QatarNational Bank, due to reportquarterly earnings on Oct 6,rose 0.7 per cent.

On Thursday, Goldman Sachsbegan coverage of QatarNational Bank (QNB) andDoha Bank with "buy" ratings,and said Qatari banks are well-capitalised, with the highestlevel of provisions in theCEEMEA space.

The benchmark ended 0.3 percent higher at 7,720 points.Other regional bourses alsoended higher. Oman's indexrose 0.4 per cent to end at 6,501points and Bahrain's indexended 0.3 per cent higher at1,449 points.

Kuwait's measure endedalmost flat at 6,987 points.

Israeli and Palestinian lead-ers want to resume directpeace talks with the help ofthe US, the country's MiddleEast envoy George Mitchellsaid. -Reuters

KUWAIT: A trader follows the market's movements at the stock exchange. The price index ofKuwait Stock Exchange (KSE) ended trade on green, ending the session with 6,986.5 points,

up 1.5 points, while the weighted index came to 467.68 points, up 1.67 points.-Reuters

Weekly Review

Monday, October 4, 20106

Volume 354,543,634

Value 11,559,147,941

Trades 203,802

Advanced 211

Declined 196

Unchanged 16

Total 423

Current 7,016.82

High 7,058.29

Low 6,876.01

Change h86.39

Current 10,042.44

High 10,106.67

Low 9,832.81

Change h132.99

Current 9,685.76

High 9,744.68

Low 9,527.26

Change h74.08

Market KSE 100 Index All Share Index KSE 30 IndexSymbolsAlert ! Unusual Movements

Technical AnalysisFundamental Highlights

As on Jun 30, 2009

TRG Pakistan Limited

TRG closed up 0.41 at 4.27. Volume was 170 per cent above average

(trending) and Bollinger Bands were 42 per cent wider than normal. The

company's loss after taxation stood at Rs511.212 million which trans-

lates into a Loss Per Share of Rs1.56 for the nine months of fiscal year

(9MFY10).

TRG is currently 9.5 per cent above its 200-day moving average and is

displaying an upward trend. Volatility is high as compared to the aver-

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

very strong flows of volume into TRG (bullish). Trend forecasting oscil-

lators are currently bullish on TRG.

RSI (14-day) 63.36 Total Assets (Rs in mn) 2,549.61

MA (10-day) 3.87 Total Equity (Rs in mn) 2,509.06

MA (100-day) 4.17 Revenue (Rs in mn) 28.92

MA (200-day) 3.91 Interest Expense 0.10

1st Support 4.03 Profit after Taxation 766.33

2nd Support 3.83 EPS 09 (Rs) 1.988

1st Resistance 4.40 Book value / share (Rs) 6.51

2nd Resistance 4.57 PE 10 E (x) -

Pivot 4.20 PBV (x) 0.66


As on Dec 31, 2009

SILK closed up 0.32 at 3.01. Volume was 158 per cent above average

(trending) and Bollinger Bands were 41 per cent narrower than normal.

The company's profit after taxation stood at Rs208.072 million which

translates into an Earning Per Share of Rs0.11 for the half year of cur-

rent calendar year (1HCY10).

SILK is currently 11.1 per cent below its 200-day moving average and

is displaying an upward trend. Volatility is extremely low when com-

pared to the average volatility over the last 10 trading sessions. Volume

indicators reflect moderate flows of volume into SILK (mildly bullish).

Trend forecasting oscillators are currently bullish on SILK.


MA (10-day) 2.75 Total Equity (Rs in mn) 196.91

MA (100-day) 2.85 Revenue (Rs in mn) 5,913.32

MA (200-day) 3.39 Interest Expense 5,855.52

1st Support 2.95 Loss after Taxation (2,902.91)

2nd Support 2.85 EPS 09 (Rs) (3.224)


2nd Resistance 3.15 PE 10 E (x) 13.68

Pivot 3.00 PBV (x) 13.76

Silkbank Limited


As on Jun 30, 2009

SSGC closed up 3.20 at 29.43. Volume was 357 per cent above average

(trending) and Bollinger Bands were 237 per cent wider than normal. The

company's loss after taxation stood at Rs306.494 million which translates into

a Loss Per Share of Rs0.46 for the nine months of fiscal year (9MFY10).

SSGC is currently 61.2 per cent above its 200-day moving average and is

displaying an upward trend. Volatility is low as compared to the average

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

strong flows of volume into SSGC (bullish). Trend forecasting oscillators

are currently bullish on SSGC. Momentum oscillator is currently indicating

that SSGC is currently in an overbought condition.


MA (10-day) 27.11 Total Equity (Rs in mn) 9,683.52


MA (200-day) 18.25 Interest Expense 4,409.79





Pivot 29.35 PBV (x) 2.04

Sui Southern Gas Company Limited


As on Jun 30, 2009

THCCL closed down -0.72 at 19.27. Volume was 1,188 per cent above aver-

age (trending) and Bollinger Bands were 31 per cent narrower than normal.

The company's loss after taxation stood at Rs12.888 million which translates

into a Loss Per Share of Rs0.16 for the nine months of fiscal year (9MFY10).

THCCL is currently 0.3 per cent below its 200-day moving average and is dis-

playing a downward trend. Volatility is low as compared to the average volatil-

ity over the last 10 trading sessions. Volume indicators reflect very strong

flows of volume out of THCCL (bearish). Trend forecasting oscillators are cur-

rently bearish on THCCL.


MA (10-day) 19.58 Total Equity (Rs in mn) 770.81


MA (200-day) 19.32 Interest Expense 63.72





Pivot 19.40 PBV (x) 1.99

Thatta Cement Company Limited

OIL AND GAS

Performance of SR Oil and Gas Index

Open High Low Close Change % Change

1,231.85 1,257.91 1,218.16 1,248.00 16.15 1.31

Turnover Total cos Defaulter cos Listed cap Market cap 200-Day High

21,323,898 - - 65,194.15 mn 1,009,728.93 mn -

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 200-Day Low

10.78 3.99 37.01 68.56 6.36 -

Attock Petroleum 576 5.25 317.93 350.00 314.00 341.34 23.41 1972575 350.00 285.00 250 - 300 20

Attock Refinery 853 14.61 81.82 83.25 78.51 80.34 -1.48 2898531 93.60 73.47 - - - -

Mari Gas Company 735 14.78 110.34 111.97 106.00 109.05 -1.29 331240 138.45 106.00 32.17 100B 31 -

National Refinery 800 5.00 193.58 208.49 192.25 200.59 7.01 619214 208.49 183.25 125 - 200 -

Oil & Gas Development XD 43009 10.12 145.01 147.99 143.30 146.70 1.69 1658921 153.00 133.00 82.5 - 55 -

Pak PetroleumXDXB 11950 5.42 171.65 176.30 169.50 173.10 1.45 3637567 214.10 168.70 130 20B 90 20B

Pak Oilfields 2365 5.96 232.11 238.00 230.50 234.64 2.53 8819542 240.01 213.17 180 - 255 -

Pak Refinery Limited 350 - 60.88 62.44 58.25 58.50 -2.38 22297 82.00 48.26 - - - -

P.S.O XD 1715 4.53 264.22 271.80 261.51 267.45 3.23 4006200 289.45 233.10 50 - 80 -

Shell Gas LPG 226 13.73 30.84 32.00 29.85 30.49 -0.35 398328 40.10 27.32 - - - -

Shell Pakistan XD 685 9.91 191.31 194.83 188.00 193.17 1.86 32936 244.00 188.00 330 - 40 -

Paid up Last 60 days 2009 2010

Company Cap(mn) PE Open High Low Close Chg Volume High Low Div BR Div BR

(%) (%) (%) (%)

PERSONAL GOODS

Performance of SR Personal Goods Index


910.01 930.23 907.35 923.69 13.68 1.50


32,449,685 - - 47,070.70 mn 113,560.72 mn -


5.29 0.46 8.64 16.68 3.15 -

Ali Asghar Textile 222 - 1.96 1.90 1.00 1.38 -0.58 38352 2.21 0.40 - - - -

Amtex LimitedSPOT 2415 4.52 16.99 17.39 16.66 16.92 -0.07 2024686 20.45 14.61 - - 30 -

Artistic Denim 840 5.83 19.06 20.64 18.50 20.00 0.94 62046 21.29 17.55 20 - - -

Aruj Garments 62 6.40 5.30 5.30 3.50 3.65 -1.65 13000 6.80 3.50 - - - -

Azam Textile 133 0.47 1.90 2.90 1.53 2.00 0.10 463480 2.90 1.35 - - - -

Azgard Nine 4493 255.00 10.45 10.73 10.00 10.20 -0.25 5017426 13.40 8.55 - - - -

Bannu Woolen 76 - 10.00 10.79 9.05 10.40 0.40 19085 10.79 7.50 - - - -

Blessed Tex Mills 64 0.77 42.84 52.05 44.98 50.57 7.73 26172 52.05 38.95 7.5 - 50 -

Brothers Textile 98 - 0.50 0.33 0.30 0.33 -0.17 23236 1.50 0.10 - - - -

Chakwal Spinning 400 1.29 1.38 2.00 1.05 1.30 -0.08 37313 2.30 0.70 - - - -

Chenab Limited 1150 - 3.32 3.69 3.00 3.05 -0.27 240521 4.98 2.93 - - - -

Colony Mills Ltd 2442 2.37 2.51 3.18 2.37 2.82 0.31 36420 5.00 2.23 - - - -

Crescent Jute 238 - 1.10 1.49 0.50 0.68 -0.42 55412 2.25 0.48 - - - -

D M Textile 31 0.51 1.99 2.68 0.99 2.62 0.63 20203 2.68 0.99 - - - -

D S Ind Ltd 600 - 1.60 1.94 1.51 1.82 0.22 289401 2.49 1.45 - - - -

Dar-es-Salaam 80 - 4.16 4.00 3.00 3.50 -0.66 15513 4.30 2.20 - - - -

Ellcot Spinning 110 1.86 25.43 24.99 20.59 21.91 -3.52 30205 25.45 20.50 7.5 - 35 -

Gadoon Textile 234 1.23 39.28 47.73 39.97 46.06 6.78 86217 47.73 33.80 - - 70 -

Ghazi Fabrics 326 1.25 2.10 5.00 3.00 4.30 2.20 57657 5.00 1.11 - - 10 -

Gillette Pakistan 192 32.70 66.00 73.00 64.05 66.38 0.38 8092 73.00 57.50 - - - -

H M Ismail 120 - 0.60 1.00 0.27 0.70 0.10 48000 1.29 0.27 - - - -

Hira Textile Mills Ltd. 716 1.41 4.00 4.19 3.75 3.95 -0.05 486515 4.61 2.52 - - - -

Ibrahim Fibres 3105 3.33 35.98 37.87 34.30 36.22 0.24 12844 41.00 34.25 - - - -

Ideal Spinning 99 0.67 3.89 3.45 2.95 3.45 -0.44 55086 4.79 2.45 - - - -

Idrees Textile 180 2.62 3.60 5.35 3.51 4.58 0.98 70909 5.35 2.55 - - 10 -

Indus Dyeing 181 3.10 253.67 266.35 226.06 234.20-19.47 17197 269.50 185.38 15 - - -

Jubilee Spinning 325 2.08 2.99 3.00 1.99 2.49 -0.50 20776 4.84 1.96 - - - -

Khalid Siraj 107 - 0.80 0.85 0.26 0.55 -0.25 11599 1.99 0.10 - - - -

Kohinoor Ind 303 - 1.60 1.65 1.01 1.51 -0.09 172498 2.00 1.01 - - - -

Kohinoor Spinning 1300 10.29 1.80 1.75 0.71 1.75 -0.05 10303 1.80 0.56 - - - -

Kohinoor Textile 1455 2.88 5.78 6.10 5.25 5.50 -0.28 156811 6.30 4.00 - - - -

Mian Textile 221 - 0.35 0.98 0.36 0.54 0.19 68007 1.40 0.01 - - - -

Mohd Farooq 189 - 0.97 1.00 0.67 0.99 0.02 5712 1.82 0.35 - - - -

Mukhtar Textile 145 - 0.72 0.81 0.25 0.45 -0.27 112475 0.99 0.25 - - - -

Nagina Cotton 187 1.25 15.08 17.18 14.75 16.55 1.47 93613 17.18 12.00 - - 20SD -

Nishat (Chunian) 1586 3.16 15.99 17.08 15.66 17.08 1.09 7123099 19.49 14.64 - 50R - -

Nishat Mills 3516 5.55 46.77 47.60 45.81 47.17 0.40 8191016 53.14 40.81 20 - 25 45R

Premium Textile 62 0.95 29.49 30.90 27.55 29.47 -0.02 94703 30.90 22.77 7.5 - 50 -

Prosperity 185 2.39 19.44 19.75 16.44 16.50 -2.94 65763 21.47 16.22 20 - 30 -

Ravi Textile 250 5.33 1.43 2.12 1.40 2.08 0.65 4793271 4.79 1.38 - - - -

Reliance Weaving 308 1.46 9.79 12.00 9.55 11.88 2.09 257607 12.00 6.91 - - - -

Rupali Poly 341 5.75 34.70 36.75 35.00 35.05 0.35 11773 36.75 31.35 40 - 40 -

Saif Textile 264 - 2.52 4.70 2.20 4.44 1.92 83241 4.70 2.01 - - - -

Salfi TextileSPOT 33 0.28 23.75 25.80 22.30 25.79 2.04 7094 27.15 17.21 - - 25 -

Sally Textile 88 0.33 4.09 4.85 3.50 4.00 -0.09 63175 4.98 2.74 - - - -

Samin Textile 134 24.59 5.76 7.13 5.08 7.13 1.37 41531 8.40 5.02 - - - 100R

Sana Ind XD 55 4.51 35.50 38.40 30.21 30.23 -5.27 80486 38.40 27.25 35 - 60 -

Saritow Spinning 133 0.54 2.06 2.70 2.00 2.35 0.29 36946 2.80 1.01 - - - -

Service Ind 120 4.79 183.00 189.99 178.10 186.00 3.00 6527 236.61 176.50 200 - - -

Shahtaj Textile 97 1.70 17.81 20.00 17.10 18.93 1.12 563574 21.50 14.75 20 - 45 -

Shahzad Textile 136 1.20 4.25 7.25 4.25 7.18 2.93 5112 8.05 3.25 - - - -

Suhail Jute 37 5.96 11.50 11.99 11.50 11.98 0.48 5500 11.99 10.50 - - - -

Suraj Cotton 180 1.56 35.94 35.75 32.61 34.93 -1.01 48742 36.20 29.50 15 - - -

Thal Limited 256 3.96 107.39 111.44 105.00 105.78 -1.61 295501 114.99 95.35 20 20B 80 20B

Treet Corp 418 0.55 39.16 45.38 38.40 43.42 4.26 658737 49.49 37.20 - - - -

Yousuf Weaving 400 1.68 1.10 1.44 1.00 1.23 0.13 15489 1.90 0.73 - - - -

Zephyr Textile Ltd 594 - 1.97 2.65 1.76 2.60 0.63 22269 4.99 1.50 - - - -



(%) (%) (%) (%)

HOUSEHOLD GOODS

Performance of SR Household Goods Index


1,041.08 1,071.27 998.02 1,058.70 17.62 1.69


1,460,314 - - 3,763.71 mn 5,532.67 mn -


3.39 0.36 10.64 6.27 1.85 -

Pak Elektron 1174 2.95 13.86 14.30 13.35 13.82 -0.04 1379417 15.95 11.51 - 10B - 10B

Tariq Glass Ind XD 231 2.86 17.00 18.10 16.70 17.58 0.58 75566 19.12 13.50 - - 17.5 -



(%) (%) (%) (%)

FOOD PRODUCERS

Performance of SR Food Producers Index


1,438.44 1,476.28 1,427.08 1,462.19 23.74 1.65


485,143 - - 11,335.33 mn 187,746.57 mn -


21.59 6.54 30.30 30.57 1.42 -

Adam Sugar 58 0.64 11.80 12.00 11.30 12.00 0.20 5202 14.75 10.50 10 - - -

AL-Noor Sugar 186 4.32 42.00 42.89 39.92 42.50 0.50 18021 47.35 37.62 40 - - -

Chashma Sugar 287 0.80 10.00 10.23 9.75 9.88 -0.12 12001 11.40 8.00 - - - -

Dewan Sugar 365 - 1.74 1.74 1.11 1.64 -0.10 32438 2.98 1.11 - - - -

Faran Sugar 217 2.99 18.49 19.49 18.40 18.50 0.01 121260 23.50 15.10 17.5 - - -

Habib Sugar 600 6.06 29.30 29.97 29.00 29.41 0.11 60318 30.44 22.50 35 25B - -

Habib-ADM Ltd 200 4.50 16.09 16.20 15.35 16.02 -0.07 12538 16.98 13.00 40 - 40 -

Hussein Sugar 121 - 11.48 13.33 11.20 13.17 1.69 5308 13.33 4.22 - - - -

Mehran Sugar 143 2.97 50.52 53.00 48.50 52.98 2.46 8562 58.74 48.50 35 30B 25 10B

National FoodsSPOT 414 21.10 47.00 47.99 43.30 44.10 -2.90 19352 65.29 41.35 - 25B 12 -

Noon Sugar 165 - 11.00 12.80 11.25 11.26 0.26 5002 14.35 10.00 50 10B - -

Pangrio Sugar 109 0.44 5.00 5.40 4.00 5.35 0.35 15523 7.00 4.00 - - - -

Sakrand Sugar 223 - 3.00 3.00 2.12 3.00 0.00 10500 3.50 2.12 - - - -

Shahmurad Sugar 211 16.23 10.61 11.90 10.60 11.20 0.59 7556 11.90 7.40 15 - - -

Tandlianwala 1177 290.82 29.00 32.90 27.50 31.99 2.99 68373 35.50 22.42 - - - -



(%) (%) (%) (%)

AUTOMOBILE AND PARTS

Performance of SR Automobile and Parts Index


1,046.68 1,073.89 1,026.65 1,044.38 -2.30 -0.22


459,776 - - 6,768.53 mn 37,822.35 mn -


3.82 0.97 25.35 20.42 5.34 -

Agriautos Ind 144 5.11 70.50 71.65 68.00 69.90 -0.60 39011 78.39 63.01 40 - 90 -

Atlas BatteryXDXB 101 5.21 133.35 139.00 132.00 138.29 4.94 9614 209.00 131.00 100 20B 100 20B

Atlas Engineering Ltd 247 11.99 16.90 17.50 16.90 17.50 0.60 10543 19.80 15.90 - 100R - -

Dewan Motors 890 - 1.35 1.80 1.25 1.38 0.03 176419 2.24 1.16 - - - -

General Tyre XD 598 6.05 23.16 23.50 22.10 22.10 -1.06 31223 28.80 21.71 - - 20 -

Ghandhara Nissan 450 - 4.73 5.24 4.16 4.23 -0.50 20851 6.60 4.15 - - - -

Ghani Automobile Ind 200 3.98 4.25 5.55 4.00 4.74 0.49 26469 5.70 3.55 - - - -

Honda Atlas Cars 1428 - 11.00 11.15 10.20 10.57 -0.43 12549 14.50 10.05 - - - -

Indus Motors XD 786 4.94 217.90 227.30 215.99 216.49 -1.41 35722 287.00 212.29 100 - 150 -

Pak Suzuki 823 9.04 71.71 72.75 69.25 72.75 1.04 49980 89.99 69.25 5 - - -

Sazgar Engineering 125 6.33 25.46 25.90 24.25 24.38 -1.08 40846 27.85 23.91 - 20B 10 20B

Transmission 117 2.20 2.03 2.44 1.84 2.20 0.17 5510 3.25 1.53 2 - - -



(%) (%) (%) (%)

INDUSTRIAL ENGINEERING

Performance of SR Industrial Engineering Index


1,432.12 1,445.88 1,393.71 1,403.60 -28.52 -1.99


859,172 - - 1,336.62 mn 30,051.71 mn -


6.64 2.52 38.02 131.49 19.81 -

AL-Ghazi Tractor 215 5.08 208.95 227.45 209.50 213.92 4.97 74628 227.45 200.26 400 - 150 -

Bolan Casting 95 5.71 45.93 50.61 46.90 49.47 3.54 121967 50.61 35.25 - 20B 25 10B

Dewan Auto Engineering 214 - 0.52 0.76 0.50 0.72 0.20 60002 0.98 0.36 - - - -

Ghandhara Ind 213 2.19 14.79 14.89 13.78 13.90 -0.89 212765 20.24 13.78 - - - -

Millat TractorsXDXB 366 5.45 584.23 587.00 423.00 425.52-158.71 385778 597.90 423.00 450 25B 650 25B



(%) (%) (%) (%)

GENERAL INDUSTRIALS

Performance of SR General Industrials Index


877.03 909.88 855.65 898.72 21.69 2.47


373,779 - - 3,043.31 mn 33,328.15 mn -


2.63 1.15 43.91 15.55 5.91 -

Cherat Papersack 92 4.46 46.78 49.49 45.90 46.80 0.02 80497 51.05 34.00 - - 20 25B

ECOPACK Ltd 230 - 1.85 2.28 1.70 1.80 -0.05 219968 2.89 1.70 - - - -

Ghani Glass 970 6.17 60.00 61.99 59.27 60.29 0.29 15180 61.99 54.65 30 10B 25 10B

Packages Ltd 844 15.43 100.00 103.00 98.00 101.85 1.85 26994 125.96 98.00 32.5 - - -



(%) (%) (%) (%)

CONSTRUCTION AND MATERIALS

Performance of SR Construction and Materials Index


907.19 928.39 891.35 912.37 5.18 0.57


26,279,423 - - 54,792.74 mn 68,619.40 mn -


6.14 0.44 7.10 19.04 3.10 -

Al-Abbas Cement 1828 - 3.50 3.69 3.14 3.24 -0.26 119020 4.40 2.82 - - - 100R

Attock Cement 866 5.09 66.00 67.00 63.10 63.89 -2.11 413636 72.40 63.00 50 20B 50 -

Balochistan Glass Ltd 858 - 1.80 2.05 1.50 1.80 0.00 23007 2.05 1.01 - - - -

Berger Paints 182 - 16.55 17.00 14.50 15.19 -1.36 172594 20.00 14.50 - - - 122R

Dadabhoy Cement 982 11.92 1.65 1.83 1.51 1.55 -0.10 38731 2.74 1.30 - - - -

Dewan Cement 3574 - 1.47 1.56 1.33 1.48 0.01 550033 2.20 1.30 - - - -

DG Khan Cement Ltd 3651 33.38 24.20 24.70 23.71 24.03 -0.17 8650157 28.74 23.02 - 20R - 20R

Fauji Cement 6933 11.93 4.80 4.87 4.60 4.77 -0.03 1705479 5.50 4.50 - - - -

Fecto Cement 502 - 6.00 6.90 4.50 5.43 -0.57 9678 7.90 4.50 - 10B - -

Flying Cement Ltd 1760 - 1.94 2.00 1.84 1.90 -0.04 159895 2.37 1.75 - - - -

Frontier Ceramics 77 - 2.70 4.25 2.40 4.00 1.30 6297 4.69 1.55 - - - -

Gharibwal Cement 2319 - 3.00 3.95 2.81 3.84 0.84 238302 7.50 2.11 - - - -

Kohat Cement 1288 - 6.14 6.20 5.87 6.00 -0.14 304359 7.38 5.70 - - - -

Lucky Cement 3234 6.36 68.85 71.15 67.70 70.77 1.92 3270020 73.88 62.60 40 - 40 -

Maple Leaf Cement 3723 - 3.05 3.15 2.75 2.81 -0.24 980091 3.84 2.75 - - - -

Mustehkam Cement 417 - 12.00 11.95 11.00 11.95 -0.05 65806 13.50 10.26 - 177R - -

Pioneer Cement 2228 - 8.19 8.25 7.25 7.69 -0.50 122977 8.47 6.31 - - - -

Safe Mix Concrete 200 - 7.06 7.90 5.71 6.34 -0.72 18680 9.47 5.50 - - - -

Shabbir Tiles 361 - 9.99 10.98 8.60 9.35 -0.64 6327 12.23 8.10 - - - -

Thatta Cement 798 - 19.99 19.85 18.80 19.27 -0.72 7931701 21.80 17.74 - - - -



(%) (%) (%) (%)

INDUSTRIAL METALS AND MINING

Performance of SR Industrial Metals and Mining Index


972.56 985.03 939.96 967.09 -5.47 -0.56


305,802 - - 3,596.11 mn 9,214.07 mn -


2.96 0.98 33.10 30.91 10.43 -

Crescent Steel 565 3.35 24.50 24.90 24.05 24.75 0.25 20592 31.73 23.75 - - 30 -

Dost Steels Ltd 675 - 2.00 2.28 1.85 2.04 0.04 49284 3.20 1.65 - - - -

Huffaz Pipe 555 6.41 14.00 16.75 13.20 15.33 1.33 114836 16.75 13.00 - 30B - -

International Ind 1199 4.70 48.64 49.50 47.50 48.27 -0.37 78357 70.71 47.50 - - 40 20B



(%) (%) (%) (%)

FORESTRY AND PAPER

Performance of SR Forestry & Paper Index


1,174.55 1,197.01 1,149.03 1,168.25 -6.30 -0.54


123,818 - - 1,186.83 mn 3,241.70 mn -


6.09 0.45 7.47 25.28 4.15 -

Century Paper 707 - 19.67 20.50 19.00 19.55 -0.12 78927 22.70 15.90 - 425R - -

Pak Paper ProductXDXB 50 4.30 59.93 62.24 41.30 41.30-18.63 30188 62.85 41.30 20 - 2533.33B

Security Paper 411 4.73 40.00 40.90 39.50 39.99 -0.01 14703 50.40 38.10 50 - 50 -



(%) (%) (%) (%)

CHEMICALS

Performance of SR Chemicals Index


1,132.48 1,157.15 1,120.69 1,135.34 2.87 0.25


57,604,290 - - 52,251.88 mn 259,371.84 mn -


6.88 2.41 35.00 48.81 7.10 -

Agritech Limited 3924 - 23.94 24.48 22.52 23.01 -0.93 15309 27.79 21.15 - - - -

Bawany Air 68 1.54 12.40 13.99 11.60 12.00 -0.40 33698 16.78 10.06 - - 5 10R

Biafo Ind 200 7.09 35.44 40.89 36.00 39.82 4.38 11501 40.89 31.64 40 - 45 -

BOC (Pak) 250 9.58 75.53 78.99 75.15 75.32 -0.21 25536 82.50 66.90 90 - 15 -

Dawood Hercules 1203 7.60 167.90 173.40 164.00 164.75 -3.15 8515 185.88 155.38 40 10B 20 -

Dewan Salman 3663 - 1.38 1.49 1.28 1.38 0.00 1705170 2.21 1.28 - - - -

Engro Corp. Ltd XD 3277 9.00 174.00 179.94 171.55 175.50 1.50 3238927 194.59 165.60 6010B 40R 20 -

Fatima Fertilizer 22000 - 11.68 11.50 10.86 11.02 -0.66 1687721 12.46 9.02 - - - -

Fauji Fertilizer 6785 7.15 105.02 106.50 104.50 105.07 0.05 1615658 113.39 102.96 131.5 10B 75 -

Fauji Fert. Bin Qasim 9341 6.91 26.77 27.50 26.59 27.15 0.38 2633552 30.65 26.59 40 - 5 -

ICI Pakistan XD 1388 6.97 119.01 122.49 116.26 116.93 -2.08 1161640 128.30 109.50 80 - 55 -

Lotte Pakistan 15142 2.94 8.58 9.04 8.17 8.46 -0.12 42096644 9.09 6.75 5 - - -

Mandviwala 74 - 1.85 1.80 1.21 1.70 -0.15 21213 3.24 1.16 - - - -

Nimir Ind Chemical 1106 67.00 1.45 1.48 1.30 1.34 -0.11 292016 1.81 1.16 - - - -

Shaffi Chemical 120 1.20 2.75 2.99 2.07 2.50 -0.25 12878 3.80 2.00 - - - -

Sitara Chem Ind 204 5.32 121.90 122.50 110.03 120.54 -1.36 37419 138.00 110.03 75 - 25 5B

Sitara Peroxide 551 - 8.30 8.40 7.67 8.03 -0.27 475598 11.09 7.67 - - - -



(%) (%) (%) (%)

PHARMA AND BIO TECH

Performance of SR Pharma and Bio Tech Index


816.20 829.15 803.52 824.06 7.86 0.96


969,617 - - 3,904.20 mn 27,763.16 mn -


5.64 1.26 22.31 44.54 7.89 -

Abbott (Lab) 979 7.74 87.80 89.20 85.10 88.29 0.49 20415 95.50 77.00 120 - 20 -

Ferozsons (Lab) 208 6.96 103.19 107.00 99.03 106.11 2.92 23004 124.00 96.00 10 20B - 20B

GlaxoSmithKline 1707 12.36 67.40 69.00 66.30 68.50 1.10 28854 83.77 65.00 50 - - -

Highnoon (Lab) 165 6.45 23.43 24.30 22.60 23.75 0.32 15700 25.79 22.10 25 - - -

Searle Pak 306 5.33 62.17 63.48 59.86 62.14 -0.03 791209 64.05 53.36 15 15B 30 -



(%) (%) (%) (%)

INDUSTRIAL TRANSPORTATION

Performance of SR Industrial Transportation Index


701.95 718.59 651.75 694.19 -7.76 -1.11


113,228 - - 3,242.17 mn 12,861.14 mn -


5.47 1.40 25.53 11.08 2.02 -

Pak Int Cont. Terminal XD 1092 8.13 68.59 69.43 62.75 66.30 -2.29 10315 87.86 62.75 - 20B 40 -

PNSCSPOT 1321 5.55 38.20 40.68 37.05 40.68 2.48 102913 41.74 34.50 30 - 15 -



(%) (%) (%) (%)

BOOK CLOSURES

Millat Tractors 04-Oct 15-Oct 350(F),25(B) 24-Sep 15-Oct

Atlas Engineering 05-Oct 11-Oct - - 11-Oct

Descon Chemicals 06-Oct 12-Oct - - 12-Oct

Pak Int Cont Terminal 06-Oct 13-Oct - - 13-Oct

Descon Oxychem 07-Oct 13-Oct - - 13-Oct

National Foods 07-Oct 15-Oct 12 29-Oct 15-Oct

Pak National Shipping Corp 07-Oct 14-Oct 15 29-Sep 14-Oct

Amtex Ltd 08-Oct 15-Oct 30 30-Sep 15-Oct

Island Tex Mills 08-Oct 16-Oct 50 30-Sep 16-Oct

JS Global Capital 08-Oct 14-Oct 50 30-Sep 14-Oct

Otsuka Pakistan 08-Oct 14-Oct - - 14-Oct

Salfi Tex Mills 08-Oct 16-Oct 25 30-Sep 16-Oct

Tata Tex Mills 08-Oct 16-Oct 25 30-Sep 16-Oct

Merit Packaging 09-Oct 15-Oct - - 15-Oct

Al-Meezan Mutual Fund 11-Oct 19-Oct 8.5(F) 01-Oct -

Ghandhara Industries 11-Oct 19-Oct - - 19-Oct

Habib ADM 11-Oct 20-Oct 40 01-Oct 20-Oct

Meezan Balanced Fund 11-Oct 19-Oct 5.5(F) 01-Oct -

Bolan Castings 12-Oct 25-Oct 25,10(B) - 25-Oct

Cherat Cement 12-Oct 26-Oct - - 26-Oct

Clover Pakistan 12-Oct 18-Oct 15(F) 04-Oct 18-Oct

Gatron (Industries) 12-Oct 18-Oct 20 04-Oct 18-Oct

Ismail Industries 12-Oct 19-Oct 17.5 04-Oct 18-Oct

Cherat Papersack 13-Oct 27-Oct 20,20(B) 05-Oct 27-Oct

INDICATIONS

# Extraordinary General Meeting

Company From To D/B/R Spot AGM/Date

ZERO VOLUME

ARUJ 3.50 3.65 3.65 3.65 0.15 0.00BGL 1.87 1.80 1.80 1.80 -0.07 0.00FTHM 114.00 115.00 115.00 115.00 1.00 0.00HMIM 0.62 0.70 0.70 0.70 0.08 0.00IDYM 234.21 234.20 234.20 234.20 -0.01 0.00MODAM 1.13 1.04 1.04 1.04 -0.09 0.00

Symbols Open High Low Close Change Vol

Monday, October 4, 20107

Technical Analysis Leverage Position

KSE 100 INDEX

Technical Outlook

KSE 100 INDEX closed up 132.99 points at 10,042.44. Volume was 16

per cent below average and Bollinger Bands were 44 per cent narrower

than normal. As far as resistance level is concern, the market will see

major 1st resistance level at 10,098.60 and 2nd resistance level at

10,154.75, while Index will continue to find its 1st support level at

9,994.35 and 2nd support level at 9,946.25.

KSE 100 INDEX is currently 1.3 per cent above its 200-day moving

average and is displaying an upward trend. Volatility is extremely low

when compared to the average volatility over the last 10 trading ses-

sions. Volume indicators reflect volume flowing into and out of

INDEX at a relatively equal pace. Trend forecasting oscillators are

currently bullish on INDEX.

RSI (14-day) 57.22 Support 1 9,994.35

MA (5-day) 10,007.41 Support 2 9,946.25

MA (10-day) 9,981.58 Resistance 1 10,098.60

MA (100-day) 9,873.56 Resistance 2 10,154.75

MA (200-day) 9,921.02 Pivot 10,050.50


Bank Al-Falah Ltd

Brokerage House Fair Value Rs Recommendations

Technical Outlook

BAFL closed up 0.53 at 8.29. Volume was 59 per cent above average and

Bollinger Bands were 53 per cent narrower than normal.

BAFL is currently 23.5 per cent below its 200-day moving average and is

displaying an upward trend. Volatility is relatively normal as compared to

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

reflect very strong flows of volume into BAFL (bullish). Trend forecasting

oscillators are currently bullish on BAFL.

*Arif Habib Ltd 14 Buy

AKD Securities Ltd 12.47 Buy

TFD Research 14.01 Positive

RSI (14-day) 53.87 Free Float Shares (mn) 674.58

MA (10-day) 8.01 Free Float Rs (mn) 5,592.25

MA (100-day) 8.97 CFS Shares (mn) N/A

MA (200-day) 10.84 CFS Rs (mn) N/A

Mean 8.10 CFS Rate N/A

Median 8.08 ** NOI Rs (mn) N/A

* Target price for Dec-10 & **Net Open Interest in future market


Pakistan Oilfields Ltd


Technical Outlook

POL closed up 2.53 at 234.64. Volume was 57 per cent above average

and Bollinger Bands were 5 per cent narrower than normal.

POL is currently 1.6 per cent above its 200-day moving average and is dis-

playing an upward trend. Volatility is extremely low when compared to the

average volatility over the last 10 trading sessions. Volume indicators

reflect moderate flows of volume into POL (mildly bullish). Trend forecast-

ing oscillators are currently bullish on POL.









Median 234.25 ** NOI Rs (mn) 116.63



Dera Ghazi Khan Cement Co Ltd


Technical Outlook

DGKC closed down -0.17 at 24.03. Volume was 26 per cent below aver-

age and Bollinger Bands were 27 per cent narrower than normal.

DGKC is currently 12.8 per cent below its 200-day moving average and is

displaying an upward trend. Volatility is extremely low when compared to


reflect volume flowing into and out of DGKC at a relatively equal pace.

Trend forecasting oscillators are currently bullish on DGKC.









Median 24.21 ** NOI Rs (mn) 16.53



Nishat Mills Ltd


Technical Outlook

NML closed up 0.40 at 47.17. Volume was 64 per cent above average and

Bollinger Bands were 31 per cent narrower than normal.

NML is currently 11.8 per cent below its 200-day moving average and is

displaying an upward trend. Volatility is extremely low when compared to


reflect volume flowing into and out of NML at a relatively equal pace. Trend

forecasting oscillators are currently bullish on NML.









Median 46.71 ** NOI Rs (mn) 16.76



Hub Power Co Ltd


Technical Outlook

HUBC closed up 0.33 at 33.19. Volume was 55 per cent below average

(consolidating) and Bollinger Bands were 65 per cent wider than normal.

HUBC is currently 1.4 per cent below its 200-day moving average and is

displaying a downward trend. Volatility is high as compared to the average

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

flowing into and out of HUBC at a relatively equal pace. Trend forecasting

oscillators are currently bearish on HUBC.


AKD Securities Ltd 46 Buy







Median 33.26 ** NOI Rs (mn) N/A



Pakistan Telecommunication Co Ltd


Technical Outlook

PTC closed up 0.31 at 18.75. Volume was 85 per cent below average (con-

solidating) and Bollinger Bands were 30 per cent narrower than normal.

PTC is currently 4.0 per cent below its 200-day moving average and is dis-

playing an upward trend. Volatility is extremely low when compared to the

average volatility over the last 10 trading sessions. Volume indicators

reflect volume flowing into and out of PTC at a relatively equal pace. Trend

forecasting oscillators are currently bullish on PTC.








Median 18.73 ** NOI Rs (mn) 6.73



United Bank Ltd


Technical Outlook

UBL closed up 1.15 at 51.95. Volume was 275 per cent above average

(trending) and Bollinger Bands were 13 per cent wider than normal.

UBL is currently 11.2 per cent below its 200-day moving average and is

displaying a downward trend. Volatility is relatively normal as compared to


reflect volume flowing into and out of UBL at a relatively equal pace. Trend

forecasting oscillators are currently bearish on UBL.


AKD Securities Ltd 63 Accumulate







Median 51.70 ** NOI Rs (mn) 0.46


EQUITY INVESTMENT INSTRUMENTS

Performance of SR Equity Investment Instruments Index


1,029.92 1,053.82 994.36 1,025.02 -4.90 -0.48


15,686,328 - - 29,771.58 mn 17,467.37 mn -


6.65 0.27 4.09 104.19 27.54 -

1st Fid Leasing 264 - 1.39 2.24 1.10 1.37 -0.02 51748 2.24 1.01 - - - -

AL-Meezan Mutual F. 1375 2.69 6.90 7.05 6.75 6.96 0.06 96622 7.25 6.35 - - 18.5 -

B R R Guardian Mod. 780 - 1.29 1.36 1.20 1.30 0.01 69107 2.43 0.90 - - - -

Crescent St Modaraba 200 1.85 0.53 0.86 0.35 0.50 -0.03 529461 0.90 0.16 - - - -

Equity Modaraba 524 7.46 1.15 1.24 0.86 0.97 -0.18 111536 1.68 0.76 - - - -

First Capital Mutual F. 300 3.49 2.58 3.80 2.50 3.25 0.67 570563 3.80 0.99 - - - -

First Dawood Mutual F. 581 - 1.66 2.00 1.55 1.70 0.04 188765 2.09 1.30 - - - -

Golden Arrow 760 4.02 3.55 3.77 3.44 3.70 0.15 968016 3.77 2.32 - - 17 -

H B L Modaraba 397 5.74 6.10 6.63 5.50 6.49 0.39 1542079 6.63 4.80 5 - 11 -

Habib Modaraba 1008 4.51 5.98 6.05 5.90 6.00 0.02 208907 7.49 5.56 20 - 21 -

JS Growth Fund 3180 37.50 3.24 3.25 2.85 3.00 -0.24 5121999 4.39 2.70 - - 5 -

JS Value Fund 1186 - 2.94 3.29 2.70 2.93 -0.01 155724 3.98 2.31 10 - 10 -

KASB Modaraba 283 2.52 1.41 1.90 1.50 1.51 0.10 25769 2.44 0.52 - - 2.8 -

Meezan Balanced F. 1200 2.85 6.05 6.10 5.85 5.90 -0.15 58250 7.49 5.85 - - 15.5 -

Mod Al-Mali 184 - 0.99 1.25 0.99 1.04 0.05 125015 1.25 0.56 - - - -

NAMCO Balanced F. 1000 3.23 3.12 3.30 2.30 3.23 0.11 21032 3.70 2.25 5 - 15 -

Nat Bank Modaraba 250 7.14 7.53 8.00 6.90 7.50 -0.03 118655 8.45 6.10 - - 10 -

Pak Prem Fund XD 1698 3.69 7.60 8.35 7.15 7.74 0.14 1373005 9.86 7.00 - - 18.6 -

Pak Strat Fund 3000 5.46 6.85 7.00 6.65 6.99 0.14 2283552 8.10 6.01 - - 11.53 -

Paramount Modaraba 59 3.09 8.00 8.50 7.51 8.40 0.40 14753 8.68 6.55 15 - - -

PICIC Energy Fund 1000 2.42 4.68 4.89 4.50 4.55 -0.13 34631 6.49 4.00 - - 5 -

PICIC Growth Fund 2835 2.24 8.31 8.40 8.10 8.14 -0.17 200939 10.55 7.60 - - 20 -

PICIC Inv Fund XD 2841 1.82 3.93 3.99 3.50 3.60 -0.33 675540 5.00 3.50 - - 10 -

Prud Modaraba 1st XD 872 2.63 0.80 1.00 0.79 1.00 0.20 1008089 1.20 0.70 - - 3 -

Punjab Modaraba 340 - 1.02 1.58 0.71 1.24 0.22 18152 2.00 0.57 - - - -

Stand Chart Mod. XD 454 4.77 8.57 8.63 7.75 8.40 -0.17 82791 10.99 7.75 16.5 - 17 -

U D L Modaraba 264 2.43 6.00 6.11 5.56 6.10 0.10 12092 6.11 5.00 10 - - -



(%) (%) (%) (%)

FINANCIAL SERVICES

Performance of SR Financial Services Index


359.11 370.64 343.04 356.81 -2.30 -0.64


30,043,804 - - 30,336.44 mn 26,131.33 mn -


0.44 0.17 37.22 4.60 10.36 -

AMZ Ventures 225 - 0.60 0.69 0.51 0.59 -0.01 179374 1.19 0.42 - - - -

Arif Habib Limited XB 450 6.48 27.32 28.45 25.82 26.00 -1.32 161421 50.12 25.82 15 25B - 20B

Arif Habib Securities 3750 2.23 23.18 23.59 22.50 22.60 -0.58 7934225 35.65 21.76 - - 30 -

Dawood Equities 250 - 2.13 2.29 1.80 2.14 0.01 36700 3.36 1.55 - - - -

IGI Investment Bank 2121 - 1.70 1.95 1.32 1.78 0.08 43118 2.80 1.17 - - - -

Invest and Fin Sec 600 2.74 8.65 9.00 7.01 7.86 -0.79 26548 9.00 6.90 - - 11.5 -

Invest Bank 2849 - 0.55 0.68 0.51 0.53 -0.02 137159 1.23 0.50 - - - -

Ist Cap Securities 2878 - 3.27 4.40 2.70 4.12 0.85 353809 5.90 2.54 - 10B - -

Ist Dawood Bank 626 0.31 1.94 2.84 1.83 1.88 -0.06 4918059 2.84 1.17 - - - -

Jah Siddiq Co 7633 14.19 9.94 10.29 9.60 9.79 -0.15 13028499 15.47 9.36 -243.778B 10 -

JOV and CO 508 - 2.80 2.73 2.31 2.64 -0.16 1997826 6.48 2.31 - - - -

JS Global CapSPOT 500 - 35.04 36.49 33.01 33.60 -1.44 112084 42.40 33.01 150 - - -

JS Investment 1000 12.73 5.78 5.99 5.41 5.73 -0.05 254821 8.65 5.40 - - - -

Orix Leasing 821 3.94 5.00 5.18 4.52 5.00 0.00 75934 5.95 3.66 - - - -

Pervez Ahmed Sec 775 - 1.49 1.74 1.35 1.61 0.12 612404 2.89 1.35 -231.08R - -

Stand Chart Leasing 978 5.09 2.13 2.90 2.03 2.24 0.11 11493 3.89 1.50 - - - -



(%) (%) (%) (%)

LIFE INSURANCE

Performance of SR Life Insurance Index


822.59 838.93 810.19 819.71 -2.88 -0.35


38,648 - - 2,290.72 mn 8,770.56 mn -


45.43 1.75 3.85 355.53 7.83 -

EFU Life Assurance XB 850 32.45 60.44 61.20 57.50 59.70 -0.74 9516 84.99 51.25 5513.33B - -

New Jub Life Insurance 627 52.50 41.92 42.99 42.00 42.00 0.08 13105 46.00 34.50 10 - - -



(%) (%) (%) (%)

BANKS

Performance of SR Banks Index


926.50 951.52 912.73 938.12 11.62 1.25


65,871,600 - - 257,548.02 mn 580,129.33 mn -


6.72 0.90 13.45 34.35 5.11 -

Allied Bank Limited 7821 5.51 51.90 52.00 50.40 51.05 -0.85 168102 59.70 48.51 40 10B 20 -

Askari Bank 6427 5.99 14.70 15.09 14.40 14.49 -0.21 593724 17.46 13.99 - 20B - -

Atlas Bank 5001 - 1.65 2.00 1.60 1.81 0.16 40479 3.00 1.52 - - - -

Bank Alfalah 13492 11.05 7.76 8.50 7.66 8.29 0.53 20899146 10.25 7.32 8 - - -

Bank AL-Habib 7322 6.70 31.00 31.40 30.52 31.09 0.09 206591 34.00 29.10 20 20B - -

Bank Of Khyber 5004 3.27 3.10 3.50 2.50 3.27 0.17 291982 4.75 2.50 - - - -

Bank Of Punjab 5288 - 8.33 8.49 8.00 8.21 -0.12 3280469 11.24 7.35 - - - -

BankIslami Pak 5280 - 3.24 3.45 3.00 3.23 -0.01 533010 3.90 2.31 - - - -

Faysal Bank 6091 3.08 13.39 13.79 13.01 13.38 -0.01 35401 15.95 12.75 - - - -

Habib Bank Ltd 10019 6.08 93.97 97.00 92.55 94.50 0.53 364987 109.10 92.00 60 10B - -

Habib Metropolitan Bank 8732 5.68 18.85 19.75 18.10 19.20 0.35 106076 23.75 18.10 10 16B - -

JS Bank Ltd 6128 - 2.40 2.49 2.30 2.33 -0.07 839863 3.00 2.00 - - - 66R

KASB Bank Ltd 9509 - 2.21 2.74 2.16 2.35 0.14 75777 4.00 2.03 - 26B - -

MCB Bank Ltd 7602 8.79 185.75 192.00 183.35 188.39 2.64 3564423 214.99 180.40 110 10B 55 -

Meezan Bank 6983 7.26 14.98 15.00 14.50 14.95 -0.03 68976 16.50 13.80 - 5B - -

Mybank Ltd 5304 - 1.96 2.30 1.90 2.12 0.16 176440 3.28 1.62 - - - -

National Bank 13455 5.32 63.09 64.25 62.15 63.36 0.27 5846868 73.89 60.51 75 25B - -

NIB Bank 40437 - 2.66 2.71 2.52 2.65 -0.01 2957681 3.50 2.42 - - - -

Royal Bank Ltd 17180 - 6.47 6.99 5.66 5.78 -0.69 117227 13.40 5.65 - - - -

Samba Bank 14335 - 1.83 1.97 1.70 1.91 0.08 62881 2.90 1.55 - - -63.46R

Silkbank Ltd 26716 13.68 2.69 3.05 2.63 3.01 0.32 19339062 3.30 2.15 - - - -

Soneri Bank 6023 - 5.50 6.18 5.20 5.60 0.10 228512 8.24 5.01 - - - -

Stand Chart Bank 38716 9.29 6.52 6.89 6.00 6.50 -0.02 121608 8.50 6.00 - - - -

United Bank Ltd 12242 6.11 50.80 52.90 50.50 51.95 1.15 5952100 60.20 49.90 25 10B 10 -



(%) (%) (%) (%)

NON LIFE INSURANCE

Performance of SR Non Life Insurance Index


625.21 634.42 609.64 616.99 -8.22 -1.31


2,868,596 - - 11,111.34 mn 40,163.42 mn -


9.83 0.51 5.20 79.54 8.09 -

Adamjee Insurance XD 1237 11.87 67.67 68.39 64.60 65.26 -2.41 374121 89.90 64.00 30 10B 10 -



(%) (%) (%) (%)

GAS WATER AND MULTIUTILITIES

Performance of SR Gas Water and Multiutilities Index


1,543.39 1,712.31 1,587.14 1,651.65 108.26 7.01


12,906,673 - - 12,202.80 mn 36,593.72 mn -


12.09 1.38 11.41 66.79 5.52 -

Sui North Gas 5491 18.04 30.99 31.90 30.21 30.67 -0.32 2183523 31.90 25.00 - - - -

Sui South Gas 6712 4.49 26.23 30.70 27.51 29.43 3.20 10723150 30.70 16.00 - - 15 25B



(%) (%) (%) (%)

ELECTRICITY

Performance of SR Electricity Index


1,132.01 1,166.65 1,125.01 1,140.74 8.73 0.77


22,280,641 - - 95,369.29 mn 96,395.44 mn -


12.46 1.17 9.35 104.13 8.36 -

Genertech 198 - 0.85 0.99 0.60 0.84 -0.01 149340 1.53 0.51 - - - -

Hub Power XD 11572 6.15 32.86 33.75 32.77 33.19 0.33 7616925 37.24 32.40 33.5 - 50 -

Japan Power 1560 - 1.50 1.56 1.21 1.39 -0.11 255156 2.38 0.70 - - - -

KESC 7932 - 2.00 2.50 1.95 2.11 0.11 3167088 2.63 1.92 - 31R - 7.8R

Kohinoor Energy 1695 5.82 24.85 25.89 23.00 23.62 -1.23 8005 26.50 23.00 45 - 15 -

Kot Addu Power 8803 7.11 41.12 41.96 40.80 41.11 -0.01 719643 44.85 39.51 64.5 - 50 -

Sitara Energy Ltd 191 3.82 21.60 23.49 20.70 22.75 1.15 14103 23.49 20.00 20 - - -

Southern Electric 1367 5.87 2.53 2.54 2.21 2.29 -0.24 599021 3.21 2.21 - - - -

Tri-star Power 150 - 0.85 1.00 0.71 0.90 0.05 42783 1.69 0.33 3 - - -



(%) (%) (%) (%)

FIXED LINE TELECOMMUNICATION

Performance of SR Fixed Line Telecommunication Index


1,073.74 1,120.89 1,059.76 1,090.38 16.63 1.55


13,674,387 - - 50,077.79 mn 76,902.64 mn -


5.99 0.77 12.84 62.56 10.45 -

Pakistan Telecomm Co A 37740 8.93 18.44 19.20 18.25 18.75 0.31 7033441 20.22 17.32 15 - 17.5 -

Telecard 3000 - 2.07 2.35 1.92 2.13 0.06 2693934 3.18 1.80 - - - -

WorldCall Tele 8606 - 2.42 2.58 2.35 2.41 -0.01 3946608 3.30 2.30 - - - -



(%) (%) (%) (%)

Central Insurance 279 5.00 48.10 51.00 48.00 48.26 0.16 8144 64.90 47.37 20 25B 10 10B

EFU General Ins. XB 1250 29.63 38.95 39.98 36.55 37.34 -1.61 19939 55.20 35.52 40 8.7B - -

Habib Insurance 400 7.30 11.46 11.50 10.41 10.51 -0.95 29239 13.89 10.10 35 - - -

IGI Insurance 718 12.72 71.50 74.99 70.50 72.00 0.50 184032 79.10 66.02 35 - 10 20B

Pak Reinsurance 3000 - 13.24 13.90 12.80 13.56 0.32 2128123 19.40 12.50 30 - - -

Pak Gen Insurance 250 1.43 6.75 6.90 5.06 6.06 -0.69 9721 8.20 5.06 5 25B - -

Shaheen Insurance 200 - 11.51 13.40 11.51 13.40 1.89 97328 16.49 11.51 -14.28B - -

UPTO 5000 VOLUME

UNIM 0.10 0.24 0.10 0.24 0.14 5000SPLC 0.78 0.80 0.60 0.66 -0.12 4332SSIC 6.40 7.45 6.10 7.18 0.78 4240DCM 1.05 1.59 1.12 1.44 0.39 4220DADX 25.70 26.98 24.41 25.51 -0.19 4166BWCL 26.14 27.43 26.25 27.20 1.06 4156JVDC 59.90 63.90 59.00 61.28 1.38 4152JOPP 10.99 11.68 10.39 10.50 -0.49 4114SCL 51.40 54.82 49.60 54.82 3.42 3957KSBP 80.50 87.15 76.65 82.00 1.50 3878SGML 3.95 4.45 3.21 4.13 0.18 3866TATM 15.81 16.88 15.00 15.30 -0.51 3717SHEZ 102.00 104.44 95.00 95.26 -6.74 3587SHTM 0.96 1.10 0.77 0.93 -0.03 3578MEHT 62.50 65.62 59.05 62.80 0.30 3560CENI 10.94 10.99 10.15 10.50 -0.44 3401KOHP 5.60 5.70 4.75 5.00 -0.60 3374MERIT 13.01 15.00 13.93 15.00 1.99 3238KML 2.75 3.49 2.55 2.75 0.00 3146NESTLE 1833.75 1974.00 1800.00 1904.75 71.00 3014FASM 26.25 33.47 27.56 33.47 7.22 3010SSOM 3.49 3.50 3.15 3.50 0.01 3000DNCC 2.49 3.12 2.19 2.22 -0.27 2991FECM 2.84 2.89 2.10 2.25 -0.59 2929MZSM 5.20 5.00 4.75 4.85 -0.35 2902TRSM 1.78 4.40 2.10 2.40 0.62 2768KOHTM 0.51 1.47 1.05 1.20 0.69 2701AGIC 9.80 11.56 9.75 11.54 1.74 2692ATIL 27.39 29.80 27.56 28.72 1.33 2619QUICE 2.20 2.21 2.11 2.21 0.01 2500GAEL 0.21 0.21 0.15 0.16 -0.05 2500ASFL 3.80 4.80 3.80 4.80 1.00 2478FECS 34.21 37.60 34.99 36.75 2.54 2383DINT 28.99 29.00 24.85 25.83 -3.16 2306FZTM 329.25 349.89 303.00 305.18 -24.07 2242HADC 1.00 1.06 0.25 0.86 -0.14 2077FIMM 61.50 67.09 64.00 67.08 5.58 2037CRTM 19.61 21.64 19.61 21.64 2.03 2030RICL 6.50 7.25 6.50 6.98 0.48 2014CPL 160.70 162.75 155.01 161.49 0.79 2010REDT 0.79 1.00 0.79 0.93 0.14 2000SANE 1.75 2.30 1.30 1.80 0.05 2000SHCM 10.00 11.00 10.00 11.00 1.00 1800CSIL 6.00 5.22 4.00 5.22 -0.78 1726AASM 28.67 28.67 26.60 27.97 -0.70 1709ARM 16.60 17.00 14.75 15.10 -1.50 1699CLOV 42.00 48.30 43.75 45.44 3.44 1641OTSU 29.00 30.04 27.50 27.52 -1.48 1622SIEM 1130.00 1200.00 1068.75 1176.97 46.97 1551MSOT 21.50 22.54 21.00 21.46 -0.04 1524CHCC 10.85 11.25 10.25 10.99 0.14 1409ISIL 73.00 76.49 71.00 75.00 2.00 1321COLG 694.75 724.90 673.01 693.00 -1.75 1310ESBL 2.89 2.95 2.11 2.80 -0.09 1305WAZIR 7.00 7.00 5.00 6.25 -0.75 1213JDWS 65.15 66.50 64.12 65.73 0.58 1128TRPOL 0.51 0.74 0.51 0.55 0.04 1101ATFF 3.88 3.25 3.12 3.15 -0.73 1050PAKMI 1.00 0.90 0.61 0.90 -0.10 1038ELCM 3.80 8.80 4.80 8.80 5.00 1034SJTM 1.30 1.30 1.00 1.00 -0.30 1017RCML 21.38 23.00 22.40 23.00 1.62 1012LMSM 3.05 4.00 2.05 2.05 -1.00 1004TICL 67.20 75.00 70.00 75.00 7.80 1003QUAT 8.92 9.00 8.92 9.00 0.08 1000SERF 0.28 0.28 0.12 0.12 -0.16 1000ULEVER 3998.98 4030.00 3955.01 4024.95 25.97 965JKSM 6.85 7.60 5.16 6.00 -0.85 961SAPT 100.00 105.00 100.00 100.00 0.00 900TRIBL 2.50 2.00 1.97 2.00 -0.50 878MIRKS 62.77 61.23 58.19 60.50 -2.27 835MACFL 3.14 3.80 2.31 3.10 -0.04 828GATI 41.00 41.51 39.00 39.50 -1.50 749SIBL 3.75 3.00 2.12 2.12 -1.63 709ATLH 98.48 101.50 92.50 98.40 -0.08 706PINL 9.00 9.49 8.50 9.20 0.20 678GRAYS 56.01 60.00 55.10 60.00 3.99 664ICL 23.74 23.00 21.00 22.92 -0.82 633AHTM 19.95 19.95 17.95 17.95 -2.00 632NOPK 24.79 27.19 23.62 25.76 0.97 590SUTM 31.59 32.03 30.03 32.03 0.44 520HUSI 9.79 10.40 9.40 9.59 -0.20 505BCML 15.75 16.75 15.75 15.75 0.00 502ANSS 6.00 6.00 6.00 6.00 0.00 500PUNO 38.95 38.95 37.15 37.15 -1.80 500SING 20.10 19.13 17.51 17.61 -2.49 485BATA 500.00 504.00 480.00 490.00 -10.00 466DMTM 2.60 2.99 2.60 2.99 0.39 436FCONM 2.01 2.39 1.01 1.91 -0.10 421PAKD 115.00 116.00 109.25 115.00 0.00 404GRYL 2.69 2.68 0.85 2.35 -0.34 386FNEL 9.50 10.00 8.49 9.86 0.36 334KOHS 7.40 6.40 4.00 4.99 -2.41 303STML 15.99 16.25 15.26 16.25 0.26 301BWHL 29.40 31.75 28.25 30.60 1.20 278PHDL 55.10 63.77 52.36 57.57 2.47 263PIL 2.96 2.82 1.90 2.22 -0.74 253NJICL 56.20 56.99 53.62 54.37 -1.83 236EMCO 3.46 3.94 2.55 2.57 -0.89 230GSPM 6.00 6.00 6.00 6.00 0.00 230SHJS 44.50 52.19 45.00 52.19 7.69 222NMBL 1.00 1.20 1.00 1.17 0.17 215SFAT 3.00 4.00 3.00 3.00 0.00 200COTT 1.97 1.92 0.80 1.26 -0.71 183ILTM 75.76 82.36 75.05 82.36 6.60 170PSYL 6.62 7.20 6.00 6.61 -0.01 167PASM 7.94 8.30 8.00 8.00 0.06 150LPGL 8.00 9.51 7.10 8.51 0.51 146PMRS 35.48 39.11 35.29 36.68 1.20 138DLL 40.42 42.98 40.90 42.49 2.07 133RMPL 1285.29 1304.73 1300.00 1300.00 14.71 128BAFS 48.93 51.35 46.50 47.78 -1.15 115SANSM 14.00 13.90 13.05 13.90 -0.10 113BUXL 14.22 14.89 12.02 12.26 -1.96 108ADOS 20.89 20.82 19.85 20.82 -0.07 108DYNO 11.75 12.09 11.04 11.04 -0.71 106NAKI 15.60 16.49 14.60 16.49 0.89 102SFWF 7.50 8.00 8.00 8.00 0.50 100AABS 89.90 90.00 89.00 89.00 -0.90 98DKTM 1.55 1.55 1.00 1.00 -0.55 91UVIC 3.65 3.65 2.70 2.70 -0.95 90WYETH 952.00 980.00 940.00 941.92 -10.08 71ISTM 4.80 4.98 4.00 4.00 -0.80 59WAHN 45.19 45.70 45.20 45.20 0.01 55EXIDE 140.02 148.49 138.01 148.49 8.47 55QUET 34.38 36.08 32.30 32.30 -2.08 53MFFL 70.22 69.88 65.57 65.72 -4.50 48DREL 525.50 660.00 551.00 660.00 134.50 40BHAT 190.25 194.98 187.10 187.10 -3.15 30PECO 305.00 319.98 288.57 310.00 5.00 29DIIL 17.50 18.50 15.95 17.94 0.44 22PGCL 20.69 22.07 20.41 20.41 -0.28 20KCL 6.40 7.30 6.40 7.20 0.80 20

Symbols Open High Low Close Change Vol

Al-Abbas Cement 42.51 3.20 3.10 3.35 3.45 3.30

Allied Bank Limited 42.86 50.55 50.10 51.75 52.50 51.30

Attock Cement 33.94 63.20 62.50 64.50 65.10 63.80

Arif Habib Limited 28.82 25.60 25.25 26.60 27.15 26.20

Arif Habib Securities 38.55 22.35 22.15 22.95 23.35 22.75

Adamjee Insurance 32.91 64.65 64.10 66.15 67.05 65.60

Askari Bank 45.14 14.30 14.05 14.85 15.20 14.65

Azgard Nine 48.52 10.05 9.95 10.35 10.50 10.20

Attock Petroleum 70.54 339.10 336.90 343.40 345.50 341.20

Attock Refinery 45.06 79.45 78.55 81.30 82.25 80.40

Bank Al-Falah 53.87 8.15 8.05 8.45 8.60 8.35

BankIslami Pak 52.80 3.10 2.90 3.35 3.50 3.20

Bank.Of.Punjab 45.76 8.10 7.95 8.35 8.45 8.20

Dewan Cement 47.04 1.40 1.35 1.55 1.60 1.45

D.G.K.Cement 42.21 23.80 23.60 24.25 24.50 24.05

Dewan Salman 41.16 1.30 1.25 1.40 1.45 1.35

Dost Steels Ltd 43.19 1.95 1.90 2.20 2.35 2.10

EFU General Insurance 36.85 36.10 34.90 39.00 40.70 37.80

EFU Life Assurance 45.14 58.25 56.75 60.45 61.15 58.95

Engro Chemical 49.83 173.80 172.10 177.00 178.45 175.25

Faysal Bank 43.23 13.05 12.75 13.65 13.90 13.35

Fauji Cement 42.39 4.65 4.50 4.85 4.90 4.70

Fauji Fert Bin 43.08 27.00 26.90 27.30 27.40 27.15

Fauji Fertilizer 47.21 104.80 104.55 105.40 105.75 105.15

Habib Bank Ltd 43.13 93.75 93.00 95.60 96.65 94.85

Hub Power 38.23 32.90 32.65 33.60 34.00 33.30

ICI Pakistan 41.84 116.00 115.05 118.15 119.35 117.20

Indus Motors 36.19 214.65 212.85 220.15 223.80 218.30

J.O.V.and CO 27.91 2.55 2.45 2.70 2.80 2.65

Japan Power 43.48 1.25 1.10 1.50 1.65 1.35

JS Bank Ltd 49.99 2.30 2.25 2.40 2.50 2.35

Jah Siddiq Co 44.21 9.60 9.45 10.05 10.30 9.90

Kot Addu Power 45.42 40.90 40.70 41.40 41.70 41.20

K.E.S.C 52.75 1.90 1.70 2.40 2.70 2.20

Lucky Cement 57.62 69.75 68.70 71.50 72.20 70.45

MCB Bank Ltd 48.39 187.10 185.80 189.85 191.30 188.55

Maple Leaf Cement 33.92 2.75 2.70 2.85 2.90 2.80

National Bank 44.07 63.05 62.75 63.85 64.30 63.50

Nishat (Chunian) 57.20 16.45 15.80 17.40 17.70 16.75

Netsol Technologies 32.57 17.70 17.55 17.95 18.10 17.85

NIB Bank 46.28 2.60 2.55 2.70 2.75 2.65

Nimir Ind.Chemical 38.85 1.30 1.25 1.40 1.45 1.35

Nishat Mills 54.61 46.20 45.25 47.85 48.55 46.90

Oil & Gas Dev. XD 58.39 145.15 143.65 148.10 149.50 146.60

PACE (Pakistan) Ltd. 52.43 2.65 2.60 2.80 2.85 2.70

Pervez Ahmed Sec 48.24 1.50 1.35 1.75 1.90 1.60

P.I.A.C.(A) 50.72 2.05 1.90 2.30 2.40 2.15

Pioneer Cement 48.96 7.45 7.20 7.90 8.10 7.65

Pak Oilfields 58.20 232.60 230.55 236.85 239.05 234.80

Pak Petroleum 29.26 171.80 170.50 174.20 175.30 172.90

Pak Suzuki 41.63 70.90 69.10 73.65 74.60 71.85

P.S.O. XD 56.71 265.40 263.30 270.65 273.90 268.60

P.T.C.L.A 51.21 18.60 18.45 19.00 19.30 18.90

Shell Pakistan 38.66 192.25 191.30 194.45 195.75 193.55

Sui North Gas 64.21 30.30 29.95 30.95 31.20 30.60

Sitara Peroxide 34.89 7.90 7.75 8.30 8.50 8.15

Sui South Gas 79.34 28.85 28.25 29.95 30.45 29.35

Telecard 44.28 2.00 1.85 2.25 2.35 2.10

TRG Pakistan 63.36 4.05 3.85 4.40 4.60 4.20

United Bank Ltd 42.24 51.35 50.70 52.75 53.50 52.10

WorldCall Tele 41.72 2.40 2.35 2.50 2.55 2.45

Company RSI 1st 2nd 1st 2nd Pivot

(14-day) Support Resistance

TECHNICAL LEVELS

(TFC) Saudi Pak Leasing Co Ltd 04-Oct 11:30

Allawasaya Textile & Finishing 04-Oct 3:30

Balochistan Particle Board Ltd 04-Oct 12:00

Dawood Capital Management Ltd 04-Oct 11:00

Dawood Equities Ltd 04-Oct 12:00

Dawood Islamic Fund 04-Oct 11:00

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BOARD MEETINGS

Company Date Time

Monday, October 4, 2010 8

May need phase-in, caphikes for insurance rules-EU

Lloyd's ofLondonprofithalves

LONDON: The Lloyd's ofLondon insurance marketrevealed that record claimsfrom disasters including theChilean earthquake and U.S. oilspill halved its profits, and saidit saw no respite from a steadydecline in prices.

Lloyd's, which traces its ori-gins back 322 years to aLondon coffee house wherewealthy merchants insuredships, on Tuesday posted a pre-tax profit of 628 million pounds($994 million) for the first halfof 2010, down from 1.32 billiona year earlier.

Lloyd's, a cluster of compet-ing insurance syndicates whichspecialise in covering large-scale risks, said it had to absorbmore claims in the first halfthan in any other six-monthperiod.

The market was also hit by a15 percent drop in investmentreturns as it switched to safelow-yielding assets in the faceof volatile financial markets.

Property and casualty insur-ers worldwide have reportedbumper claims in the first halfof the year, with reinsurerMunich Re (MUVGn.DE) esti-mating total insured losses overthe period at $70 billion,exceeding the total for all of2009.

Insurers have had to pick upthe bill for heavy storms inEurope and Australia as well asthe Chilean earthquake andGulf of Mexico oil spill, whilesome Lloyd's insurers havebeen hit by a sharp rise in UKmotor insurance claims.

The industry is also strug-gling with falling prices amidintense competition betweeninsurers holding abundant sup-plies of capital after a relativelylow volume of claims in 2009.

Lloyd's finance director LukeSavage said prices looked set tokeep falling, and most of thesyndicates operating in the mar-ket would probably respond bywriting less business next year.

"At the moment there is noth-ing that would lead us tobelieve that (prices) are goingto improve generally. In anenvironment of slowly declin-ing rates, people are going to beslowly reining in the amount ofpremium they write," he toldReuters.

Lloyd's, which competes withMunich Re and Swiss Re aswell as Bermuda-based insurersand reinsurers, is consideringopening an office in Russia,adding to its existing overseasbases in China, Singapore,Japan and Brazil, Savageadded. -Reuters

AIG needn’tpay up some

policyholders'Madoff claimsNEW YORK: AmericanInternational Group Inc neednot make payments to someformer Bernard Madoff clientswho said their homeownerinsurance policies entitled themto coverage for alleged losses, ajudge ruled.

Two California residents,Robert and Harlene Horowitz,had alleged $8.5 million oflosses in Madoff's Ponzischeme, reflecting the amounton their final account statementbefore the fraud was revealed inDecember 2008.

They said this entitled them tothe maximum $30,000 payoutunder their AIG FraudSafeGuard protection in theirpolicy. They sought class-action status on behalf of poten-tially thousands of policyhold-ers. -Reuters

BADIN: President Asif Ali Zardari and Speaker National Assembly Fehmida Mirza performing ballationg of

Waseela-e-Haq programme under BISP at District Badin.-APP

BADIN: The Benazir

Income Support Programme

(BISP) has benefitted some

three million people during

the last two years, added the

promise of health insurance

made with the poor people is

also being implemented

today.

This was announced by

Chairperson of BISP, Ms.

Farzana Raja. She was

speaking at a public gather-

ing in connection with

Waseela-i- Haq Programme

under BISP, in which

President Asif Ali Zardari

also distributed cheques of

Rs 0.1 million among 12

needy and deserving women

as well as cheques of Rs

4,000 each among 12 women

of flood affected families.

Farzana Raja stated that the

poverty survey is being start-

ed from Badin and that

under the BISP the survey

would be conducted from

house to house.

Farzana Raja said that the

President had fulfilled the

promises made with the peo-

ple as well as the National

Assembly and the Senate.

She stated that the govern-

ment under the leadership of

President Asif Ali Zardari

would resolve the problems

of the people who are living

below the poverty line.

She announced that we

would not rest until the peo-

ple stand on their own feet.

The Chairperson BISP said

that 4,000 women whose

names were drawn through

balloting have been imparted

training for doing business.

She said that the President

has formally launched a

national programme under

which each BISP beneficiary

would be automatically

insured at the state expense

entitling the heirs to receive

Rs 100,000 in case of his or

her demise.

Farzana Raja stated that Rs

10 billion have been allocat-

ed under emergency relief

package for the flood

affectees and for this Rs

three billion are being given

under the BISP.

It was pointed out that of

the 600,000 flood affectees

in Sindh, 250,000 have been

assisted under the relief

package.

Of the two billion flood

affectees in the country,

more than six million are in

the province of Sindh who

have already been paid Rs

1,000 and now the instalment

of Rs 12,000 each is being

sent which is part of package

of Rs 20,000.

The first instalment of the

BISP has been sent to the

post offices which the

affectees can receive by

showing the identity cards.

Speaker National Assembly

Dr. Fehmida Mirza has

appreciated the role of

President Asif Ali Zardari for

strengthening democracy in

the country and ensuring the

supremacy of Parliament

through the politics of recon-

ciliation. -Agencies

Healthcoverunder

BISP on

BISP benefitted 2mn people in 2 years: Farzana

Staff Reporter

KARACHI: Some dull activi-ties witnessed in the insurancestocks last week at the Karachistock exchange as just around2.9 million shares were tradedtogether in life and non-lifeinsurance stocks which areabout 5 million shares less ascompared to a turnover of 8million previous week. PakReinsurance was the volumeleader with 2.12 million shares

followed by AdamjeeInsurance with 0.37 millionshares. Top gainers of the weekinclude Shaheen Insurancewhich increased by Rs1.89 toclose at Rs13.40 and AskariGeneral Insurance was up byRs1.74 to close at Rs11.54while Adamjee Insurance wasdown by Rs2.41 to close atRs65.26 and New JubileeInsurance lost Rs1.83 to closeat Rs54.37 to be the major los-ers of the week.

Insurers languishat KSE last week

LONDON: Tesco's plans tosell mortgages in Britain couldface a delay because it has yetto receive approval from thecountry's financial serviceswatchdog.

"The FSA (FinancialServices Authority) is justbeing careful. It is a newprocess and it is very difficult,"a Tesco spokesman said.

He declined to comment on areport in the Observer thatTesco's plans to enter the homeloans market could be delayedby up to 12 months.

Tesco, Britain's biggestretailer, had originally hoped tostart selling mortgages late thisyear. However, the FinancialTimes newspaper recently saidit aimed to launch a homeloans product in March.

Tesco, which reports first-half results on Tuesday, isbuilding up its building up itsbanking and insurance busi-ness, and is expected to launcha fixed-rate savings accountlater this month, with a currentaccount to follow next year. -Reuters

Tesco faces delay inbid to sell mortgages

KARACHI: Governor,State Bank of Pakistan,Shahid H Kardar said thatrecent floods also providesan opportunity for banks andfinancial institutions tospread out their financialreach to those badly affectedby floods.

Kardar urged the banks toexpand insurance and finan-cial cover to the affectedareas.

SBP Governor said that thedevastating floods can pro-vide an opportunity forbanking industry to increasefinancial inclusion, diversifyits products on sustainablebasis and play its due role inrebuilding the national econ-omy.

Speaking at a roundtablediscussion on "DamagesAssessment of Floods andImplications for theFinancial Sector" arranged

by State Bank here, said SBPrelease.

Kardar said the CentralBank is cognisant of theadversity and has taken ini-tiatives to assess the damageand encourage the use ofbest practices in the interestof long-term development ofthe financial sector on sus-tainable basis anchored ininclusion and better financialservices.

The SBP Governor said thefloods caused widespreaddevastation in 78 districtsacross Pakistan with hugelosses of wealth in the formof crops, livestock, roads,infrastructure, public andprivate buildings, etc.

Moreover, the floods haverendered approximately 20million homeless and posedserious health risks for theflood victims.

The agriculture sector,

which accounts for 21% ofGDP and 45% of employ-ment, has been particularlyhard hit and the direct lossesto major crops have beenestimated at Rs 281 billionby the Federal Ministry ofFood, Agriculture andSUPARCO. In addition toagriculture, the manufactur-ing sector which depends onagricultural inputs, has alsobeen adversely affected, hesaid.

These developments willlead to adverse economicoutcomes, with anemicgrowth and higher inflation.Pakistan will not be able toaddress these issues aloneand will need external sup-port, he said.

Kardar urged the financialinstitutions to come forwardand play their due role inrebuilding of the affectedareas as the State Bank and

the Government would notbe able to do it alone.

The agriculture, microfi-nance and SME sectorsneed special support of thebanking industry in order tore-start the process ofincome generation.

State Bank has constitutedcommittees in the areas ofSMEs, Microfinance &Agriculture and GeneralRelief activities to develop astrategy for the settlement ofexisting loans and provisionof fresh credit in the affectedareas.

He informed the partici-pants that these committeeshave recommended write-offs of existing loans whereprospects of recovery areslim, restructuring/resched-uling of lending; refinancefacilities for fresh lendingand subsidy on associatedfinancial charges. -Agencies

SBP urges banks to upinsurance in floodzones

Flood provides banks opportunity to increase financial inclusion: SBP

TAIPEI: AIG named a newacting head for its Taiwanunit Nan Shan Life on Friday,in a move that analysts saidpaves the way for AIG to sellthe unit again following thecollapse of an earlier $2.2 bil-lion (1.4 billion pound) deal.

American InternationalGroup (AIG) appointedRichard Bender as the actingpresident of Nan Shan, thelocal unit said in a statementfollowing a board meeting.Bender is currently executivevice president and chiefagency officer of AIG's AIAunit in Hong Kong.

The bailed-out insurer hasrepeatedly said it is evaluat-ing its options on Nan Shan.Analysts said it is more likelythat Nan Shan will be soldrather the other choices of ashare market listing or AIGkeeping hold of the unit.

"Deep inside, AIG wants tosell Nan Shan as it needs torepay its debts to the U.S.government," said an analystwith an European-based bro-

kerage."The appointment will help

AIG better understandTaiwan regulators' views on asale of Nan Shan," he said,asking for anonymity due tothe sensitive nature of thematter.

Nan Shan did not offer anyfurther comment on the com-pany's future in its statement.

"Nan Shan will continue toprovide the people of Taiwanwith excellent insuranceplanning services withrespect to professional man-agement, product develop-ment and policyholder servic-es," the statement said.

AIG's earlier plan to sellNan Shan was rejected byTaiwan regulators late inAugust, on concerns that thebuyer group, led by Chinesebattery maker China StrategicHoldings, lacked the abilityto raise future funds andlacked experience in runningan insurance firm.

The rejection drew a sharpresponse from the buyer

group, and AIG had warned itcould run down Nan Shanand cut jobs if the deal did notgo through.

AIG is currently in themidst of an IPO of its AIAAsian unit that will raisesome $15 billion, but it is notlikely to go through the sameprocess for the much smallerNan Shan.

It will find willing buyers inTaiwan for Nan Shan, withChinatrust Financial andFubon Financial havingexpressed interest.

Cathay Financial, theisland's top financial firm, isalso seen as a potential suitor.

Nan Shan is Taiwan's No.3insurer by market share withT$1.5 trillion (30.55 billionpounds) in assets and 4 mil-lion policy holders, aboutone-sixth of the island's pop-ulation.

Bender replaced FrankChan, who is originally fromHong Kong and who retiredin September, the statementsaid. -Reuters

AIG Taiwan unit getsnew boss after sale fails

Canada tocap rises in

premiums ofjob insurance

OTTAWA: Canadian FinanceMinister Jim Flaherty said onThursday the government willlimit increases in employ-ment insurance premiums toavoid derailing economicrecovery.

Increases in employmentinsurance premiums will belimited to 5 Canadian centsper C$100 of insurable earn-ings, while increases in sub-sequent years will be limitedto 10 Canadian cents perC$100 of insurable earnings.

"These new limits strike anoptimal balance between sup-porting economic recoveryand ensuring that the EI pro-gram breaks even over time,"Flaherty said.

The finance minister saidthe changes will amount toC$1.2 billion in savings forworkers and employers com-pared with what they wouldhave paid if recommendationsfor increases been imple-mented in full. -Reuters

NEW DELHI: The biggest sportingspectacle India has ever hostedkicked off in typically colourful fash-ion on Sunday night when the 19thCommonwealth Games was officiallydeclared open.

After seven years of planning forthese Games - many would differwith the number - and months of con-troversy over security, fallingbridges, cobras, dengue fever and thestate of the athletes' village, the grandopening was finally able to showcasewhat India is good at on the night -putting on a show full of rich cultureand tradition.

The embattled Games organiserswould also have breathed a huge sighof relief that, at last, focus could beturned towards India's heritage before17 sports begin the quest for gold onMonday morning.

India's chief minister Sheila Dikshitand CWG chief Suresh Kalmadi wereeven afforded generous applause bythe packed stadium - that was tochange during Kalmadi's speechwhen a majority of the stadium booed- despite the bitter backlash the pairhave endured to get the event Games-ready.

"We had challenges and there have

been delays but we have been able torise above them all," said Kalmadi,who clearly divides opinion with theIndian public.

Prince Charles, the Prince of Wales,and his wife Camilla, were introducedto the 60,000-strong Jawaharlal NehruStadium along with Indian PresidentPrathiba Patil and Prime MinisterManmohan Singh as the audiencestood for the national anthem.

An uplifting opening segment thenlet everyone remind themselves whythey were here in the first place.Powerful music, consistent drum-ming and clever use of India's three

colours - green,white and orange- emblazoned thefirst 30 minutesbefore the 4,000athletes from 71countries enteredthe fray.

Australia led theteams into thisimpressive stadi-um while Englandcame out resplen-dent in Kurta out-fits - loose redshirts over whitetrousers - whichwere made tomeasure from anIndian companysuch wereCommonwealthGames England's

coffers and lack of

sponsorship.Nevertheless, it is

medals that are now onchef de mission CraigHunter's mind and NathanRobertson, England's flagbearer, will be one of those inthe running for gold in thebadminton event while theclash of the week will be inthe pool against Australia.

India, of course, weresaved to last. Led out byOlympic gold medalist shoot-er Abhinav Bindra, theirentrance sent the stadium intoa Sachin Tendulkar-like frenzybefore Kalmadi said that"India's moment is finally here.India is ready".

The other segments duringthe evening included the Tree ofKnowledge, Yoga and the GreatIndian Journey. Bollywood, ofcourse, played its part in the cere-mony as did the major attrac-tion of the event - a hugeaerostat with video projec-tions and graphics dis-played on the screen.

The CommonwealthGames baton - seeminglyoblivious to Delhi'sorganisational problems- came into the stadiumbefore being handed toPrince Charles anddeclaring the Gamesopen. At last, the sport couldbegin.-Agencies


Manchester City’s Tevez challenges Newcastle

United’s Tiote during their EPL soccer match

Newcastle’splayer

sustainsbroken leg

LONDON: NewcastleUnited's French forwardHatem Ben Arfa was taken tohospital with a suspected frac-ture of his left leg after onlyfour minutes of his team'sPremier League match atManchester City on Sunday.

Ben Arfa collapsed under theweight of a fierce challengefrom City's powerful DutchmanNigel de Jong and, after receiv-ing oxygen on the pitch, wasstretchered off and takenstraight to Manchester RoyalInfirmary hospital. The 23-year-old France international ison a season-long loan atNewcastle from French cham-pions Olympique Marseille. Hehad scored one goal in his threematches for Newcastle beforeSunday.-Reuters

FormerPakistanipacer to

coach UAEDUBAI: Kabir Khan, the for-mer Pakistan fast bowler andAfghanistan coach, has accept-ed an offer to coach UnitedArab Emirates. Kabir ended hisassociation with theAfghanistan team in August,resigning over a dispute withthe officials of the AfghanistanCricket Board, and now aims tohelp UAE qualify for the WorldTwenty20 in 2012.

"I have agreed to take over asUAE coach on a three-year dealand my target will be to helpthe team to the World Twenty20in Sri Lanka in 2012," Kabirtold. "UAE team has played theWorld Cup (50 overs) in 1996so the idea will be to help themqualify for the World Twenty20and help them achieve goodstatus.

"UAE has a lot of potentialand the administration is alsokeen on improving the team, soI will do my best to help UAEregain their status at interna-tional level and there is enoughtalent to achieve that."

Afghanistan's ascent in inter-national cricket occurred underKabir's supervision..-Online

KARACHI: Pakistan bowlersMohammad Amir andMohammad Asif have joinedcaptain Salman Butt in appeal-ing their suspensions from thegame over allegations of spotfixing, the Geo television chan-nel reported on Sunday.

Amir and Asif have sent theirappeals and replied to thenotice issued to them by theInternational Cricket Council(ICC) anti-corruption and secu-rity unit through their lawyers,the channel reported quotingsources close to the players.

Butt had already filed hisappeal last week.

The three have been suspend-ed until newspaper allegations

have been investigated thatthey fixed parts of games dur-ing the tour of England whichfinished last month.

They have denied wrongdo-ing and have been supported byPakistan cricket chiefs.

The Pakistan Cricket Board'slegal advisor Talib Rizvi, con-tacted by Reuters, said since itwas a weekend he was notaware of whether the playershad sent their appeals.

"But they are workingthrough their own lawyers whowere working on the appeals.The board had advised them tosend the appeals to the ICC assoon as possible," Rizvi said.-Reuters

Amir, Asifappeal ICC ban

LONDON: Manchester Cityclimbed to second in theEnglish Premier League (EPL),at least until Chelsea playedArsenal later on Sunday, whenthey beat Newcastle United 2-1at Eastlands with a late winnerfrom Adam Johnson.

Johnson, who had only beenon the pitch three minutes,scored a superb goal 15 min-utes from time after collectingthe ball on the right, jinking hisway past two defenders andcurling a low shot into the farcorner of the Newcastle net.

Chelsea top the table with 15points, followed by City on 14and Manchester United on 12.Arsenal, on 11 points, wouldgo ahead of City if they beatChelsea.

There was drama before thegoals at Eastlands whenNewcastle's on-loan winger,French international HatemBen Arfa was carried off on astretcher with a suspected bro-ken left leg after a powerfulchallenge from City's Dutchmidfielder Nigel De Jong.

Ben Arfa's left leg buckled asDe Jong's momentum carriedhim forward and the nature ofthe injury was so upsetting that

ESPN television, broadcastingthe match live, decided not toshow replays of the incident.

City went ahead with apenalty after Newcastledefender Mike Williamson wasadjudged to have brought downCarlos Tevez. Tevez pickedhimself up and smashed theball low past Tim Krul for theopener after 18 minutes.

Newcastle were level sixminutes later when VincentKompany made a poor clear-ance from a shot from JonasGutierrez whose powerful vol-ley on the rebound gave JoeHart no chance.

Newcastle's injury misfor-tune continued when they lostFabrico Coloccini with aninjury after 38 minutes.

He was replaced by SolCampbell who made his leaguedebut for the club and becameonly the second player, afterRyan Giggs, to have played inall 19 seasons of the PremierLeague's existence.

In later action Liverpoolwere meeting Blackpool atAnfield and league leadersChelsea were playing Londonrivals Arsenal at StamfordBridge.-Reuters

Man City rises to2nd spot in EPL

BEIJING: Former world num-ber one Maria Sharapovastruggled into the second roundof the China Open on Sundaywith a laboured 6-4 7-6 victoryover unseeded BulgarianTsvetana Pironkova.

The Russian had troublefinding consistency during herBeijing opener as world num-ber 32 Pironkova put up spirit-ed resistance in the second set.

A glum-looking Sharapovadid not even celebrate herprogress in the Chinese capitalafter a second set tiebreakended the two hour, sevenminute slog.

"The first rounds are alwaysdifficult. You just try to findyour way and your rhythm. Atthe end of the day, I found away to win and that was themost important thing today,"said 12th seed Sharapova.

The Russian, dumped out ofthe Tokyo Open in the firstround by 40-year-old Japaneseplayer Kimiko Date Krummlast month, said she was strug-gling to find her form.

"I faced a tough opponenttoday," said Sharapova after amatch featuring fierce ralliesand multiple break opportuni-ties under a hot Chinese

autumn sun and strong winds."I think consistency is one of

my problems and I need to cutdown on the errors. I had tochange my motion after sur-gery on my shoulder."

Fourth seed Samantha Stosursuffered a shock exit when shelost to Latvian qualifierAnastasija Sevastova despitecomfortably securing the firstset 6-2. The Australian thenlost the second set 7-6 and thethird 7-5.

Unseeded Argentine GiselaDulko also caused an upset byknocking out France's AravaneRezai 6-4 2-6 6-4.-Reuters

Sharapova laboursthrough in China

MOHALI: Mitchell Johnsonhastened an abrupt India col-lapse on Sunday with hissixth test five-wicket haul togive Australia a 23-run firstinnings lead in the first test.

Replying to Australia's firstinnings total of 428, Indiawere cruising merrily at 354

for four before losing sixwickets in the final session ofthe third day to fold for 405.

India dominated the earlyproceedings with four bats-men registering half-cen-turies. Sachin Tendulkar(98), narrowly missed his49th test hundred.

Resuming on 110 for two,India lost nightwatchmanIshant Sharma (18) in themorning session. However,Tendulkar and Rahul Dravid(77), sharing more than25,000 test runs betweenthem, steadied the inningswith a 79-run stand.

Dravid played with charac-teristic caution until hebecame Doug Bollinger'ssecond victim of the matchafter a sedate knock contain-ing 12 boundaries.

Tendulkar and SureshRaina (86) then stitchedtogether a 124-run fifthwicket partnership, the high-est in the Indian innings, toconsolidate their positionbefore Australia hit back inthe post-tea season.

Marcus North trappedTendulkar to send a groanacross the Punjab CricketAssociation Stadium andJohnson dismissed MahendraSingh Dhoni and HarbhajanSingh off successive deliveries.Tendulkar hit 13 boundariesduring his 189-ball knock.

Middle order batsmanVangipurappu Laxman, nurs-ing a bad back, came out tobat after India had lost theireighth wicket.

Raina took India past the400-run mark but a secondtest century eluded the left-hander who eventuallybecame Johnson's fifth vic-tim after a mature knock.-Reuters

Johnson 5-wkt haulcauses India to collapse

CWG kicks offamid uncertainties

* Tendulkar misses ton, Raina hits second test fifty

MOHALI: Australia's wicketkeeper Paine and Katich appeal successfully for the LBWwicket of India's Tendulkar on the third day of their first test cricket match.-Reuters

Pakistan PremierFootball League

KRL beatsdefending

champsLAHORE: Titlist KhanResearch Laboratories strucktwice inside nine minutes toinflict 2-0 win over PakistanNavy in the 46th match ofPakistan Premier FootballLeague at Municipal Stadium,Saidpur Road, Satellite Town,Rawalpindi.

It was second leg between twoteams who had chosenMunicipal stadium for their 15home matches.

The first leg between the twowas locked 1-1 on 23 Septemberat same turf. Both the teams alsofaced each other in the final ofNational Football ChallengeCup 2008 twice in last threeyears.

Navy were victorious in 2008edition with 3-1 at Karachi'sPeoples Sports Complex onMauripur Road, Lyari Town butKRL took sweet revenge with 4-0 win at Qasim Bagh Stadium,Multan earlier this year.

KRL started the game well,creating the game's first chancein the fifth minute whenMudassar Saeed provided across for Abid Ghafoor whoshoot wide from 20 yards. But aminute later, ball was in Navy'snet as KRL lanky Islamabad-born winger Muhammad Qasim,one of the hat-trick makers ininternational soccer arena forPakistan, slipped the ball pastseamen's keeper Ishaq Ahmed.

Despite weakened by theabsence of six players due toNational duty - Samar Ishaq,Kalim Ullah Khan, MehmoodKhan, Yasir Afridi, MuhammadAdil, Rizwan Asif in PakistanU23 Camp - KRL doubled themargin in the 9th minute throughChitral-born Zia Us Salam whoout-muscled Navy defence,whipping a powerful shot thatfound the left corner. Navy couldhave reduced the arrears in the23rd minute when Asif Bakhshcurled in a cross, butMuhammad Basharat's headerdid little to trouble goalkeeperAsim Khurshid who made acomfortable save.-NNI

NEW DELHI: Minister of Sports Sindh Dr M Ali Shah leads Pakistani troupe duringopening ceremony for the Commonwealth Games.-Reuters


Analysis & Feature

No amount of jumpingor arm swinging willrevive the $60.4 bil-

lion global video game indus-try this holiday season.

Motion game controllersfrom Microsoft Corp andSony Corp hitting storeshelves in time for the holidayrush may stir curious videogame fans, but disappointinvestors and retailers bettingon a recovery.

US video game sales aredown 8 per cent this year ontop of an 8 per cent drop in2009, according to retailresearch firm NPD.

Industry watchers had

pinned hopes of a sales lift onthe release of new accessoriesthat mimic and improve uponmotion-sensor functions pio-neered by Nintendo's Wiigame system.

"We think that (motiongames are) going to bringrenewed interest to the gam-ing platforms," Best BuyChief Executive Brian Dunnsaid in an interview. "I believethey are going to be quite suc-cessful and will reignite inter-est in video games."

Investors had also hopedSony's Move and theMicrosoft's Kinect systemswould extend the shelf life of

PlayStation 3 and Xbox,respectively, both of whichhave each been on sale forfour years or more.

But, while motion gamingsales "will be incremental thisholiday," said Lazard CapitalMarkets analyst ColinSebastian, "By no means willit help the console businessturn the corner."

Early signs of interest havebeen discouraging, accordingto a recent survey by theresearch and trading firmMKM Partners.

More than half of game con-sole owners in a US survey of1,334 people said they were

undecided about buying thenew hardware and only 17 percent of them said they wouldpurchase the systems.

Microsoft expects to sell 3million Kinect units this year.A Sony spokeswoman saidsales of the Move was "per-forming very well at retail,"but declined to give specificnumbers.

The Move launched on Sept.19 with its camera priced at$39.99 and its motion con-troller wand at $49.99. TheKinect, which hits stores onNov. 4, will cost $150 anddoes not require a separatehandheld controller.

WAIT AND SEEGame publishers are gauging

the demand for motion sensortechnology before investingheavily to develop motiongames for Sony and Microsoft,analysts say.

With only a short list of titlesare available this season, "A lotof consumers are taking a wait-and-see approach," said MKMPartners analyst Eric Handler.

Moreover, the foundation ofhardcore gamers unaccus-tomed to exercise may notwarm to the idea of getting offthe sofa to play motion games,some of which are focused onfitness or dancing.

"The bulk of gamers like tosit there and veg out," saysWedbush Securities analystMichael Pachter. "Gamersdon't actually appreciate whatthey get from the Move orKinect."

While major game publish-ers like Take Two Interactive ,Electronic Arts and THQ Inchave made limited announce-ments about their new motiongames, Ubisoft, the Frenchgame maker that was one ofthe first companies to producegames for the Wii, is bettingheavily on the technology. It isreleasing several titles for bothsystems this holiday.

Goldman Sachs upgradedUbisoft to a buy rating onSept. 21, predicting a salesrecovery from the launches ofthe Move and Kinect. Ubisoftshares have traded about 23per cent higher than theirAugust low on the Bourse inParis.

Still, Adam Novickas,Ubisoft's US director of mar-keting, is skeptical the newproducts will radically changethe entire video game industry.

"It's hard to say, 'the fate ofthe industry relies on motioncontrollers,'- that's just not atrue statement," he said. -Reuters

Motion gaming could disappoint this holiday

Britain's defenceminister hasflagged up therisk of a deeprift in the

Conservative Party, thedominant partner in thecountry's coalition govern-ment, in a leaked letter aboutmilitary spending cuts.

The letter pits DefenceSecretary Liam Fox againstPrime Minister DavidCameron, warning of"grave" consequences fromthe cuts. It was leaked justdays before the annual con-ference of the ConservativeParty, whose members tradi-tionally assign high priorityto the 'defence of the realm'.

In details of Fox's letterthat were made public, theminister outlines his fearsover cuts to naval equip-ment, not personnel num-bers, supporting media spec-ulation that Fox wants toretain hardware orders suchaircraft carriers and fast jets.

"Fox ... clearly has aspira-tions to be party leader. Ifthings go too badly fordefence and he takes bigcuts, he will lose supportwithin the party," saidAndrew Dorman, a seniorlecturer at King's CollegeLondon's defence depart-ment.

"The letter ... hands prob-lems of defence cutbacksback to Cameron, and there-fore Cameron takes the fall,"he added.

Defence cuts are just partof government-wide effortsto protect Britain's triple-Acredit rating by slashing abudget deficit that has blownout during the global eco-nomic crisis to about 11 percent of national output.

But the issue of how torestructure Britain's militarygoes to the heart of the polit-

ical vision of the country'sfuture status. TheConservatives pride them-selves as being pro-militaryand have support from thedefence industry.

Fox's letter warned of a"brutal" reaction from themilitary, media and theirparty if "draconian" spend-ing cuts -- believed to be of10 per cent -- are pushedthrough.

LEADERSHIPCHALLENGE

British police are investi-gating who leaked the letter,whose publication is seen aspositive for Fox. Thedefence minister is on theright of the right-leaningConservative Party and hadpreviously challengedCameron for the party lead-ership.

Speaking on British televi-sion after Fox's letter wasleaked, Cameron dismissedFox's concerns as "unfound-ed".

"I can absolutely guaranteeyou, we will have well fund-ed, strong armed forces todefend our country," he said.

Where Fox appears to dis-agree with his cabinet col-leagues is not only about thescale of the cuts, but whatwould constitute "strong"armed forces able to defendthe country, as well as thetimescale over which themilitary should be restruc-tured.

The letter appears to focuson the damage cuts couldinflict on the navy.

Defence ministry sourceshad told Reuters they sawmilitary personnel, in partic-ular the army, taking thebrunt of cuts.

"Some of the press arguethat Cameron is more sym-pathetic to the army's case,and Fox's focus on maritime

cuts would be consistentwith this interpretation,"said professor MalcolmChalmers from the RoyalUnited Services Institutethinktank.

"Fox is seeking to preserveequipment that would bemost relevant for war fight-ing against other militarilycapable states rather thanthose that are most relevantfor complex counter insur-gency operations againstnon-state actors and in frag-ile states," he added.

Such operations includeBritain's involvement inAfghanistan, from where thecountry hopes to withdraw

its troops by 2015. BothCameron and Fox have saidAfghanistan spending wouldbe ringfenced, raising theproblem of the timing ofcuts.

TIMESCALESCONFLICT

Speaking to Reuters lateon Thursday after the letter'spublication in a Britishnewspaper, Fox said hisargument was more nuancedthan calling for smaller cuts.

"It's not just about the totalamount of money, it's whatwe do with it, and it's aboutthe timescale," he said.

Analysts said it was nor-mal for any minister facing

cuts to their department totry to win concessions, butthat the letter's publicationwas more likely to help Foxdeflect criticism over unpop-ular cuts than change theTreasury's mind.

"Fox is doing what anyonewhat would expect anydepartmental minister to doin this situation, what theyhave to do to retain credibil-ity with the people he's incharge of," said Tim Bale,senior politics lecturer at theUniversity of Sussex.

"That is probably dis-counted to some extent inDowning Street (residenceof the prime minister and

finance minister) as well.They would expect a minis-ter to do this."

On Oct. 20 the Treasurywill outline governmentspending cuts over the nextfour years, includingdefence. This year's defencebudget was some 36.9 bil-lion pounds ($58 billion).

But the Ministry ofDefence (MoD) has indicat-ed that it is planning itsspending requirements over10 years.

A four-year timeline islikely to make cuts to thearmy difficult.

By the end of October, theMoD will publish a Strategic

Defence and SecurityReview (SDSR), aimed atrestructuring the military toprepare it for future needs.

Fox told Reuters he wasnot pushing for more timefor the SDSR, but ques-tioned the timescale of theTreasury's planning.

"Having twice as longwouldn't make us twice aswise. This defence review islong overdue," Fox toldReuters.

Fox is due to meet theNational Security Council,which includes Cameron andmust approve the MoD'splans for the military, nextweek. -Reuters

Asian refiners andtraders could grapplewith thin diesel mar-

gins this winter and early nextyear, weighed down by heavysupplies from new plants andfleeting European appetite foreastern barrels.

Winter heating demand istraditionally the key driver forthe distillates market, andweak margins during this peri-od could hit refiners hard.

Poor margins for middle dis-tillates, which contribute 40per cent of a refinery's totalcapacity, may put more pres-sure on global oil majors inAsia as domestic firms furtherboost their refining capacities.

China and India, Asia's twotop oil consumers, are togetherestimated to add over 900,000barrels per day (bpd) of refin-ing capacity this year to feedgrowing fuel demand as sus-tained economic growth boostscar sales and manufacturingactivity.

European markets, the otherkey outlet for barrels fromAsia, may also be out of reach,as the arbitrage window canswing shut fairly quickly. "Wefeel there's little upside for gas

oil cracks, and they're likely tostay around $12 a barrel for therest of the year, perhaps untilFebruary," said Alex Yap, ananalyst with energy consultan-cy FACTS Global Energy.

After hitting a year-low of$7.21 a barrel on Jan. 15, themargin for processing MiddleEast Dubai crude into gas oil inSingapore, or crack spread, ral-lied to a year-high of $13.69 onJune 22, lifted by summerdemand in Europe and Asia.This is still low compared topeaks of above $45 in May2008, and below the average of$15.30 over the past five years.

Cracks have been mostlyrangebound between $11 and$13 since, but above $13 to athree-month high on Friday,lifted by expectations of firmerEuropean demand after a portstrike sparked run cuts inFrance. But traders saw this asa short-term factor.

"The strength in the gas oilmarket cannot go on for long.Fundamentals have notchanged, sentiment is stillweak," said a derivatives traderwith a bank.

CHINA, INDIA EXPANDCAPACITY

Supplies are expected toremain high in the last threemonths of the year. Asia-Pacific refiners are estimatedto take 1.062 million barrelsper day (bpd) of capacityoffline for maintenance in thequarter, down 65 per cent from3.059 million bpd in the July-September quarter and 60 percent from 2.621 million bpd inthe fourth quarter of 2009,FACTS Global Energy datashowed.

China is likely to export400,000-500,000 tonnes of gasoil per month in the finalmonths of the year, steady toslightly above the average forthe year near 400,000 tonnes,largely on high domestic cruderuns.

New refining capacity to beadded by year-end -- 300,000bpd in China and 120,000 bpdin India -- will boost supplies.So far this year, China hasalready added 370,000 bpd ofcapacity, while India increasedby 127,000 bpd, estimates byenergy consultancy WoodMackenzie show.

On the demand front, region-al gas oil imports are likely toremain tepid, despite a few

short-term fillips.Indonesia's Pertamina has

raised its fourth-quarter termgas oil imports, butIndia, aheavy importer of low-sulphurAsian diesel, will buy signifi-cantly less as its plants com-plete upgrades to produceclean fuels by October.Devastating floods havereduced Pakistan's consump-tion.

Vietnam's top fuel importerPetrolimex has also scrappedits fourth-quarter tender due tohigh domestic inventories.

ARBITRAGE WINDOWSHUTS, THEN OPENS

East-West arbitrage opportu-nities had thinned earlier thisweek, after brief European pre-winter heating demand haddrawn an estimated 5.5 millionbarrels of Asian gas oil to theWest.

The 5.5 million barrels ofarbitrage gas oil represent thehighest volumes to be shippedWest since November. At thattime, 7.35 million barrels ofAsian distillates were provi-sionally booked to be storedoffshore the United Kingdomas demand slid in the wake ofthe slowdown.

In Europe, prompt priceshave risen enough to spur therelease of gas oil stored intanks and drawdowns fromfloating storage anchoredmostly off the U.K. coast, withGoldman Sachs citing shipbro-kers' estimates of 4-13 millionbarrels of distillates held ontankers that were unloaded inSeptember.

On Friday, the Oct/Nov ICEgas oil spread traded at a pre-mium of $2.00 a tonne. Thespread has flipped betweenbackwardation and a smallcontango over two sessionsthis week, signalling thatdemand could weaken.

On Friday, expectations oftighter supplies after theFrench port strike crackedopen the arbitrage window.

"The East-West arb is cur-rently increasingly viable, buthigh stock levels in the Westmay cap volumes," added Yapat FACTS.

Lawrence Eagles, globalhead of oil research withJPMorgan in New York, notedthat Europe's high supplies arebearish.

"Heating oil stocks in theAtlantic Basin alone are

already at the level needed tomeet peak winter demand.There's no need for barrelsfrom Asia," he said.

"The stocks are a very keybarometer of the net supplysituation, and we think theyare net bearish. That under-scores the negative trend inprices."

Gas oil stocks in theA m s t e r d a m - R o t t e r d a m -Antwerp area have fallen forthe third-straight week, anddown marginally on a yearago, while US heating oilstocks rose slightly from week-ago and year-ago levels.

Oil products held in floatingstorage worldwide remainhefty at 34.2 million barrels inSeptember, although this wasdown 4.4 million barrels fromAugust and was the lowestsince June 2009.

Last year's unusually coldwinter is also unlikely to berepeated, resulting in lowerheating demand, analysts said.

A developing La Nina cli-mate cycle, which could be oneof the strongest on record,could lead to warmer winter inparts of Europe, easing thedraw on heating oil stocks,

forecasters said.CAPPED MARGINS

Trading opportunities couldturn out to be pretty dismal forthe rest of the year.

Lower volatility has hurttraders' ability to profit frommiddle distillates, while highersupplies and thinning arbitrageopportunities have dentedphysical market sentiment.

For traders, the contango andstorage plays that had helpedmaximise trading margins lastyear, after the economiccrunch stymied demand, willlikely be absent this year.

"It's been a tough year, muchharder than last year," said atrader at a Western firm."Physical trades are tougherthis year with the lack of con-tango to cover storage costs,while for paper trades, volatili-ty has fallen, which in turn haseroded margins."

Another derivatives traderwith a bank agreed. "There arefewer obvious opportunitiesthis year. So far, it's been pos-sible for some players to makemoney with the arb play inSeptember, but we're not sureif this will last much longer." -Reuters

Asia diesel outlook glum after Europe's brief lift

BUDGET SPAT RAISES STAKES

IN UK MILITARY REVIEW


International & Continuation

CONTINUATIONHe said that the government was doing its best in the case of Dr

Aafia Siddiqui and his ministry was also in constant communica-tion with the Ministry of Foreign Affairs in this regard. -APP

Continued from page 12No #1

put the chances of such an outcome at below 50 per cent."I'm at the more pessimistic end," he told the Observer."I'm not sunnily optimistic about where the Western economy is

going, I do not rule out the risk of a double-dip recession causedby some fresh wave of global fear and crisis."

The Conservative-led coalition plans to cut spending by around25 per cent across most government departments to slash a budg-et deficit running at 11 per cent of national output. -Reuters


Islamabad and Nato will jointly investigate this week's missileattack on a Pakistani post which killed three Pakistani soldiers, hesaid. The envoy also reported close cooperative efforts byPakistani and American intelligence towards thwarting a Europe-centric terrorist plot, reported in the media this week.

"Pakistan is an American ally. America depends on Pakistan. Wecan't and do not do everything that the Americans think we shoulddo because sometimes we don't have the capacity sometimes, wedon't have the means.

"We work those things out. And that is exactly we are doingright now. Minus all the political noise, the fact remains that weare working together.-Agencies


whose long alliance is often uneasy. A joint Pakistani and Natoinvestigation of the incident has started, said a Pakistani militaryofficial. "In such a situation, allowing these trucks to carry on withtheir journey would be inviting more attacks so there's no need torush," said the official.Civilian casualties caused by the missile-carrying pilotless drones, operated by the US Central Intelligence


in Brussels on the sidelines of a two-day Asia-Europe Meeting(ASEM).

A Nato statement said Qureshi and Rasmussen will discuss thesituation arising out of the violation of Pak airspace by Nato hel-icopters but will hold no press briefing after the talks.

Pakistan blocked a land route for Nato supplies in neighbouringAfghanistan on Thursday after Nato helicopter attack that killedthree Pakistani soldiers.


witnessed in 2QCY10 mainly due to better gross margin andhigher volumetric sales.

Besides the other sectors that supported the corporate earningsgrowth were fertiliser, automobile, E&P, banks and IPPs whichposted profit of Rs4.74 billion (+76 per cent), Rs1.56 billion (+76per cent), Rs24.99 billion (+33 per cent), Rs16.4 billion (+23.5per cent) and Rs2.63 billion (+14 per cent) respectively.

On the other hand, after witnessing phenomenal growth in earn-ings by cement companies in FY09, their earnings plunged 123per cent, during the 2QCY10.

Earnings of the listed companies turned into losses during theperiod and recorded at Rs448 million against previous year's prof-it after taxation of Rs1.96 billion.

Decline in profitability was primarily resulted from lower reten-tion prices and higher coal prices around $94 per tonne.


over 8 million people."Rebuilding Pakistan is a main priority for us now," the official told Reuters. He asked not to be

named because he is not allowed to discuss IDB's plans at this stage. -Reuters


period last year.Market remained under pressure mainly due to imposition of capital gain tax, destructive floods

in the country, uncertain political situation, rise in interest rates, delay in IMF tranche, deterioratinglaw and order situation, weak economic position, unavailability of leverage product and tusslebetween government and judiciary.

On the other hand, local participants of all categories remained net-seller during 3QCY10 asbiggest quarterly selling was witnessed from Mutual Funds which sold $192.8 million of shares inthe local bourse against the buying of $148.45 million, thus turning the net-selling worth of $44.32million. This was mainly due to redemption of $51 million in mutual funds schemes having expo-sure in equity market during 3QCY10.

Furthermore, companies, other organisations, banks, individuals and NBFC remained on the sell-ing side which ejected shares worth $28.55 million, $10.11 million, $9.91 million, $9.2 million, and$4.16 million respectively.


November. The sources privy to Finance Ministry said that revenues of additional Rs59 billionwould be received as a result of imposition of sales tax in three phases. Reformed Sales Tax will putan end to tax exemptions worth Rs60 billion. The tax exemptions worth Rs147 billion were givenlast fiscal year.

The sources in Federal Board of Revenue (FBR) said the reformed-GST would raise nationalincome by 0.75 per cent tax ratio.

The reformed-GST imposition will take the proportion of taxes in GDP from 9 to 9.75 per cent.The government is making efforts to impose sales tax from November 1st, so that the six tranche

under IMF standby program could be issued. -Agencies


purpose will be kept up at every level.PM Gilani said the political parties and public are united for the early rehabilitation of the

affectees. The premier lauded the efforts undertaken up by the Punjab Governor saying the federalgovernment will give more help if needed by the provinces.-Agencies


Agency, have infuriated many Pakistanis and made it harder forthe government to cooperate with the United States.

Pakistan is reeling from floods which have made over 10 mil-lion people homeless, caused billions of dollars in damages andhurt the agriculture industry, the economy's mainstay.

The government may be headed for another showdown with thejudiciary, and media speculation is swirling that the military maytry to manipulate politics to avoid instability, after Pakistani lead-ers' perceived mishandling of the floods.

ABUJA; A small terroristgroup based outside Nigerianot militants from the oil-producing Niger Delta car-ried out last week's car bombattacks in the capital Abuja,President Goodluck Jonathansaid on Sunday.

Two car bombs explodednear a parade markingNigeria's 50th anniversary ofindependence in the capitalAbuja on Friday, killing atleast 12 people.

The attacks were claimedby Nigeria's main militantgroup, the Movement for theEmancipation of the NigerDelta (MEND).

A MEND statement signedJomo Gbomo -- the pseudo-nym used by the group toclaim previous attacks onNigeria's oil industry -- wasemailed to media warningthe area should be evacuatedan hour before the Abujabombs went off.

But Jonathan said investi-gations had revealed MENDmembers knew nothingabout the attacks and theyhad been carried out by a

small group based outsideNigeria, sponsored by "unpa-triotic elements within thecountry."

"It is a small terroristgroup that resides outsideNigeria that was paid bysome people within to perpe-trate the dastardly act,"Jonathan said, according to astatement from his office.

"We are on their trail and Ipromise Nigerians that thematter will be investigated tothe last and until everybodyis brought to book, we willnot rest."

Jonathan said on Saturdaythose responsible had usedthe MEND name to "camou-flage criminality and terror-ism."

SENIOR MILITANT

ARRESTED

Henry Okah, a seniorMEND figure, was arrestedin South Africa on Saturdayunder counter-terrorism lawsand is due to appear in courtin Johannesburg on Monday,his lawyer said.

"The warrant of arrestalleges that he contravened

the Protection ofConstitutional DemocracyAgainst Terrorist andRelated Activities Act ... Hetotally denies any wrongdo-ing anywhere," Okah'slawyer Piet du Plessis toldReuters.

Security experts believeOkah -- who accepted thegovernment amnesty lastyear after gun-running andtreason charges against himwere dropped -- was at onetime the brains behindMEND, although he hasdenied ever being its leader.

MEND carried out attackson oilfields and pipelines inthe Niger Delta, home toAfrica's biggest oil and gasindustry, for years untilaccepting an amnesty in2009.

It has said it is fighting fora fairer share of the naturalwealth for the vast wetlandsregion, whose villagesremain mired in povertydespite five decades of crudeoil extraction.

But MEND has alwaysbeen a nebulous organisation

and the line between militan-cy and criminality has longbeen blurred.

Many of the gangs that car-ried out attacks in thegroup's name were originallyset up as sabotage squads tohelp rig elections, rightsgroups and security analystssay.

They went on to thrive on alucrative trade in stolen oiland on ransoms paid for kid-napped foreigners andwealthy Nigerians and effec-tively work as guns-for-hire,security experts say.

Jonathan inherited thepresidency this year after thedeath of President UmaruYar'Adua. One of his mainachievements while servingas Yar'Adua's deputy hadbeen helping to cement theamnesty deal in the NigerDelta.

He faces an election nextyear and some analysts havequestioned whether theAbuja bombs were intendedto undermine his credibilityby showing the Niger Deltaissue is unresolved.-Reuters

Foreign-based groupbehind Nigeria

bombs: President

CARACAS: VenezuelanPresident Hugo Chavezvowed to "radicalize" hissocialist revolution even fur-ther after legislative elec-tions that gave the opposi-tion one of its strongestshowings during his morethan 11 years in power.

Chavez's ruling SocialistParty won last weekend'svote by a slim margin, taking5.45 million votes or 48.9per cent compared with 5.33million votes or 47.9 per centfor the newly unitedDemocratic Unity umbrellagroup.

The result lifted the opti-mism of the opposition,which now sees a chance tounseat Chavez in 2012 presi-dential elections.

Investors and analysts arewaiting to see the reaction ofa man who has in the pastcome out of elections bynationalizing swathes ofindustry and attacking pri-

vate capital."We are going to continue

forward, democratically rad-icalizing the socialist revolu-tion because it is necessary,"Chavez said late Saturday toa television audience.

He dismissed the opposi-tion celebration of a moralvictory as "15 minutes ofdrunkenness."

Despite their thin overallvote advantage, theSocialists took a healthymajority in the NationalAssembly -- 97 seats com-pared to 65 for DemocraticUnity. But the ruling partyfell short of the two-thirdsneeded to pass major legisla-tion and make appointmentsto key bodies such as theSupreme Court.

"Only through socialismwill we get out of misery. Iam dedicated to and decidedon deepening the socialistand Bolivarian revolution,"Chavez added Sunday in

comments posted on Twitter,referring to Latin Americanindependence leader SimonBolivar.

He offered no details ofwhat that would entail but hewas pointedly critical offood warehouses that are stillin private hands, saying thatinstead of being full of foodthey contained beer, rum,clothing and other products.

Venezuela-watchers havewondered what areas of theprivate sector Chavez mighttarget next, with most specu-lation concentrated ongreater control of the food,agricultural or banking sec-tors.

The election results cameas Venezuela's oil-rich econ-omy continues to shrinkwhile most others in LatinAmerican have been recover-ing from the global econom-ic crisis of 2008 and 2009.Inflation is running at nearly30 per cent annually.-Reuters

Chavez vows toradicalise after

Venezuela election

JERUSALEM: Israeli para-military border police killed aPalestinian on Sunday after heentered East Jerusalem fromthe occupied West Bank with-out a permit.

A police spokesman said theman, 37, was shot while tryingto grab a border policeman'spistol. A Palestinian who saidhe witnessed the incident,which occurred before dawn,disputed the police account.

Salah Abed Rabbo said heand the man killed in theshooting, Ezz el-DeenKawazba, were among sixPalestinian labourers who had

slipped across an Israeli barri-er, which takes in much ofEast Jerusalem, and fled fromborder policemen givingchase.

"Ezz el-Deen lagged behind,and the soldier attacked himand shot him. Ezz el-Deen fellto the ground without makingany noise," Abed Rabbo said.

He said he witnessed theshooting after reaching higherground and turning around tocheck on what was happening.Police said the incident wouldbe investigated by its internalaffairs department.

Jerusalem is at the core of

the Middle East conflict, withPalestinians seeing its easternsection as capital of a statethey hope to found in the adja-cent West Bank and the GazaStrip.

Israel captured EastJerusalem from Jordan in the1967 war and calls the wholecity its capital, a status notrecognised abroad. After anarmed Palestinian revolterupted a decade ago, Israelerected the barrier, a move itcalled a security measure andwhich Palestinians con-demned as a land grab.-Reuters

Israeli police killPalestinian in Jerusalem

BAGHDAD: Two senior secu-rity officials in Iraq's northernDiyala province were arrestedin connection with a plot tobomb the provincial govern-ment building, officials said onSunday.

A special forces counter-ter-rorism unit arrested BrigadierGeneral Amir al-Taie, securityadviser to Diyala GovernorAbdul-Nassir al-Mahdawi, andLieutenant Mahana al-Jubouri,chief of the building's securityunit, on Sunday, according toMuthana al-Timimi, head ofthe provincial council's securi-ty committee.

No charges had been filedyet, officials said.

"The arrest was conducted byDiyala special security opera-tions on accusations of threatstargeting the local governmentbuilding," Timimi said.

Security was tightened onSunday around the govern-ment building in Diyala's capi-tal, Baquba. It houses the gov-ernor's office and the provin-cial council chambers.

Security checkpoints andconcrete blast walls wereadded and anyone entering thebuilding, including officials,was searched.

"Now, the situation is undercontrol and the danger isdefused," Timimi said.

Diyala, an ethnically mixedregion northeast of Baghdad,

has seen some of the worstviolence since the US-ledinvasion in 2003.

While overall violence inIraq has tumbled since thepeak of the sectarian slaughterin 2006-07, bombings andother attacks by al Qaeda mili-tants and Shi'ite militias occurregularly.

Diyala is mainly Sunni Arabbut has significant Shi'ite andKurdish populations.

Militants are believed to betrying to exploit a politicalvacuum that followed Iraq'sinconclusive election inMarch. Nearly seven monthslater, Shi'ite, Sunni andKurdish factions continue tosquabble over positions in anew government.

Insurgents often targetpolice, soldiers and govern-ment workers in a bid to dis-credit the government and dis-rupt Iraq's nascent democracy,military leaders say.

Diyala security officials saidthey had intelligence about aplot by armed groups againstthe government building butprovided few details.

"Intelligence information hasbeen received from the securi-ty apparatus that there were carbombs that would target thegovernment building," MajorGhalib al-Jubouri, a policespokesman in Diyala, said.-Reuters

Iraqi securityofficials arrestedover bomb plot

Turkishminister

accuses EUof politicalintrigues

ISTANBUL: The EuropeanUnion's refusal to negotiatewith Turkey over several areasrequired for membership ispolitically motivated and hasdeepened Turks' frustration,the minister in charge of acces-sion talks said on Sunday.

The EU cannot keep Turkeyindefinitely "waiting at thedoor" of membership, StateMinister Egemen Bagis said inan e-mailed statement to markthe fifth anniversary of thedate the country began formaltalks on joining the bloc.

Since then, Turkey has ini-tiated talks on 13 of 33 poli-cy "chapters" that it mustclose to attain full member-ship. Negotiations on 17chapters have been blockedbecause of Turkey's refusalto recognise arch foe Cyprus,an EU member.

"The negotiation process isinterrupted by politicalintrigues in a way that hasnever been experienced by acandidate country before,"Bagis said. "This approach isneither fair nor sustainable ...The Turkish public is becom-ing increasingly frustrated inits drive towards the EU."

Some opinion polls showTurks' support for joining theEU is now less than half fromabout 75 per cent a decadeago.-Reuters

Gabon setslimits onforeign

workers inoil sector

LIBREVILLE: Gabon's gov-ernment has agreed to tradeunion demands to limit the num-ber of foreign workers in its oilsector to 10 per cent and torequire all executive posts to beheld by Gabonese, oil sectorunion ONEP said on Sunday.

Legislation to implement thelimits will be finalised by the endof the year, said ONEPspokesman Arnaud Engandji,adding oil firms in the centralAfrican state would have twoyears to adjust to the 10 per centlimit and six months for what hecalled the "gabonisation" of allexecutive positions.

Engandji said an accord on thelimits was signed Friday by OilMinister Julien Nkoghe Bekale,Labour Minister Maxime NozoIssondou and ONEP Secretary-General Guy-Roger AuratReteno.

The deal averts the risk of astrike in Africa's seventh largestcrude oil producer, one of thefew in sub-Saharan Africa tohave launched a Eurobond.

Gabon produced about250,000 barrels of oil per day in2008, according to US EnergyInformation Administration data.Foreign investors include RoyalDutch Shell, Total, Tullow OilPlc, Canadian Natural Resourcesand many others.-Reuters

SAO PAULO: Brazilian presidential candidate for the PSDB party Serra gestures tophotographers after voting at a polling station .-Reuters

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KARACHI: Leader JUI-F Maulana Fazl-ur-Rehman called on President Asif Ali Zardari here at Bilawal House. Federal Minister for Law, Justice & Parliamentary Affairs, Dr Babar Awan is also present in the meeting.-Online

KARACHI: Minister for Lawand Parliamentary Affairs DrBabar Awan has said that hisMinistry was consulting the leg-islative authorities to bring allpowerful and influential peoplein the tax net.

Addressing the ‘Meet the PressProgramme’ of Karachi PressClub (KPC) here Sunday, theMinister said that the govern-ment was very much perturbedover the issue that the influentialwere not filing tax returns.

"The existing laws need over-hauling and justice should pre-vail without any discrimina-

tion," he said.He said that the present gov-

ernment has always defendedthe Freedom of Information Actand added that the PPP made alot of sacrifices for the protec-tion of the constitution.

Referring to the dictatorialrules of the past, the Ministersaid that all the conspiraciesagainst the democratic govern-ment will be foiled.

He said that the accountabilityshould be conducted across theboard and not confined to thepoliticians and that 'chosen'accountability was not the

barometer of justice.The Minister said that the slo-

gans of 'Sindh Card' were thedays of history as today thepresent government enjoys thesupport of the masses in all theprovinces and added that thegovernment will complete itstenure and next elections will beheld in 2013.

Babar Awan said that it wasfor the first time in the historyof the country that the presentgovernment gave representationto all the provinces. "Federalgovernment has given all dueshares to the provinces under

the NFC Award and all the fed-eral secretaries hail from all theprovinces," he said.

Extending all the support toDr Aafia and her family, he saidthat the case could have beenfiled in the Pakistani court andher trial in the US court wastotally unfair and unjust.

"Dr Aafia case is based on cir-cumstantial evidence and it istotally an unfounded case," hesaid and the urged the AttorneyGeneral of the United States tohand over Dr Aafia Siddiqui toPakistani government.

See # 1 Page 11

Consulting to cast taxnet on big fish: Awan

Law Minister addresses ‘Meet the Press’ programme at KPC

Says country’s existing laws need overhauling

BIRMINGHAM: The Bank ofEngland can support the economy asBritain cuts a record budget deficit,Prime Minister David Cameron saidSunday, after a senior government

minister warned of the risk of anotherrecession.

There are signs that the economy --along with other major economies --is slowing after bouncing back

strongly from the financial crisis.At the same time, many countries

including Britain are making drasticgovernment spending cuts to dealwith bloated budget deficits. Someanalysts and policymakers argue suchcuts could create problems if theglobal economy slows rapidly.

"The right stance was to deal withthe deficit -- the problem facingBritain -- and at the same time thatallows the Bank of England to keepmonetary policy and interest rates rel-atively expansionary," Cameron saidin a BBC interview.

Cameron's justice minister KennethClarke, who was Chancellor when theConservatives were last in power,warned that Britain could succumb toa double-dip recession, although he

See # 2 Page 11

Cameron looks to BoEfor economic support

Record Budget Deficit

KABUL: Afghanistan hasbegun disbanding private secu-rity companies operating in thecountry, shutting down eightfirms and seizing over 400weapons, the Interior Ministrysaid Sunday.

The move is part of PresidentKarzai's ambitious plan to takeover all Afghan securityresponsibilities from foreigntroops by 2014.

Since Karzai’s decree inAugust, a plan has been drawnup for the process which isexpected to complete by theend of the year, InteriorMinistry spokesman ZemaraiBashary said.

United Nations and Nato-ledInternational SecurityAssistance force had given ittheir support, he added.

"The interior ministry is

implementing this plan withseriousness and decisiveness,"he told a regular briefing.

The first targets are illegalarmed groups operating as pri-vate security firms, companieswith temporary permits andthose who provide securityescorts for foreign forces andhave been engaged in criminalacts and security breaches.

The government has alreadyclosed down an Afghan securi-ty firm with 75 employees, andseveral smaller groups whichprovided security escorts forconvoys, Bashary said.

"The plan is arranged in asuch a manner that it doesnot create a security gap,yet at the same time (wecan) dismantle the privatesecurity companies,"Bashary said. -Reuters

Kabul retiringlocal security cos

Move starts as part of plan to takeover security by 2014

ISLAMABAD: PML-Q presi-dent Chaudhry ShujaatHussain has written a letter tothe US Secretary of StateHillary Clinton urging her togive Pakistan TemporaryProtected Status (TPS) in viewof massive disaster by unprece-dented floods in the country.

In his letter, the PML-Q pres-ident drew the attention ofSecretary of State to the USlaws under which the adminis-tration can designate a foreigncountry for TPS if certain tem-porary conditions exist in thatcountry such as an ongoingarmed conflict or an environ-

mental disaster.Shujaat said the natural

calamity demands a humanitar-ian response from its friends inthe United States.

He said US has been in theforefront as a generous contrib-utor of humanitarian assistanceto the affectees and hoped thatit would seriously considerdesignating TPS due to condi-tions in the country.

He said this would temporar-ily prevent Pakistani nationalsfrom returning to their homesand by doing so the US willcertainly in their hearts andminds. -Agencies

Shujaat seeksTPS for Pakistan

‘Q’ leader writes to Clinton for Temporary Protected Status

WASHINGTON: Bank of America isdelaying foreclosures in 23 states as itexamines whether it rushed the foreclo-sure process for thousands of homeown-ers without reading the documents.

The move adds the nation's largestbank to a growing list of mortgage com-panies whose employees signed docu-ments in foreclosure cases without veri-fying the information in them.

Bank of America isn't able to estimatehow many homeowners' cases will beaffected, Dan Frahm, a spokesman forthe Charlotte, NC-based bank, saidFriday.

He said the bank plans to resubmit cor-rected documents within several weeks.

Two other companies, Ally FinancialInc.'s GMAC Mortgage unit andJPMorgan Chase, have halted tens ofthousands of foreclosure cases after sim-ilar problems became public.

The document problems could causethousands of homeowners to contestforeclosures that are in the works or havebeen completed. If the problems turn upat other lenders, a foreclosure crisis that'salready likely to drag on for several moreyears could persist even longer.

Analysts caution that most homeown-ers facing foreclosure are still likely to

lose their homes.State attorneys general, who enforce

foreclosure laws, are stepping up pres-sure on the industry.

Connecticut Attorney General RichardBlumenthal asked a state court to freezeall home foreclosures for 60 days.

Doing so "should stop a foreclosuresteamroller based on defective docu-ments," he said.

And California Attorney General JerryBrown called on JPMorgan to suspendforeclosures unless it could show it com-plied with a state consumer protectionlaw. The law requires lenders to contactborrowers at risk of foreclosure to deter-mine whether they qualify for mortgageassistance.

In Florida, the state attorney general isinvestigating four law firms, two withties to GMAC, for allegedly providingfraudulent documents in foreclosurecases. The Ohio attorney general askedjudges this week to review GMAC fore-closure cases.

In New York, State Attorney GeneralAndrew Cuomo is reviewing the matter"to prevent homeowners from beingimproperly removed from their homes,"according to a spokesman, RichardBamberger. -Reuters

Bank of Americadelays foreclosures

AmericanstouringEuropeput onalert

WASHINGTON: UnitedStates has warned its citizens toremain vigilant as they travel inEurope in light of intelligencepointing to threatened attacksby al Qaeda militants, a USofficial said on Saturday.

A plot to stage coordinatedattacks in Europe was disruptedin its early stages by drone strikesagainst militants in Pakistan, butit was not clear if the threat wasfully erased, security sources saidearlier in the week.

The US official, speaking oncondition of anonymitybecause of the sensitivity ofthe issue, said the UnitedStates "is considering issuing atravel alert asking Americansto be vigilant as they travel inEurope given the most recental Qaeda threat."

The official said the UnitedStates was consulting withEuropean governments aboutthe possible action.-Reuters

Tajikistan aimsoil, gas JVs

with Pakexplorers

DUSHANBE: Minister forPetroleum and NaturalResources Syed NaveedQamar said that oil and gasexploration and productionsector in Pakistan had devel-oped into a dynamic and themost mature sector.

This he said during a meet-ing with a delegation ofTajik Trans Gas --a stateowned oil and gas explo-ration and production com-pany, -- led by its DirectorGeneral Sharofiddinov inDushanbe.

The Director General pro-posed that Pakistani publicand private sector oil andgas companies could comefor a joint venture to exploreand develop the oil and gassector in Tajikistan.

Syed Naveed Qamarassured him to extend allpossible support and assis-tance in its quest of explo-ration of hydrocarbon inTajikistan.-NNI

Fazl meetsPresident

KARACHI: Maulana Fazl-urRahman, Chief of JUI called onPresident Asif Ali Zardari herein Bilawal House on Sundayevening.

Coalition matters includingrumors regarding change in thegovernment and flood relief meas-ures were discussed during themeeting. President said PakistanPeoples Party believes in politicsof reconciliation and is committedto continue the process.

The meeting is a part of theconsultation process, the gov-ernment has initiated with itspolitical allies. -Agencies

Documents

The Financial Daily Epaper 04-10-2010