12
International PM in Karachi, meets Governor Sindh Pension thru banks nodded See on Page 12 US to send 1400 extra troops to Afghanistan See on Page 12 *Crude Oil (brent)$/bbl 95.38 *Crude Oil (WTI)$/bbl 89.42 *Cotton $/lb 147.30 *Gold $/ozs 1,368.60 *Silver $/ozs 29.19 Malaysian Palm $ 1,259 GOLD (NCEL) PKR 37,975 KHI Cotton 40Kg PKR 10,395 Yearly(Jul, 2010 up to 5-Jan-2011) Monthly(Dec, 2010 up to-5-Jan-2011) Daily (5-Jan-2011) Total Portfolio Invest (31 Dec-2010) 180.20 -14.57 -23.06 2900 4.35 1.42 1.25 -1.84 -0.53 -4.23 -0.43 SCRA(U.S $ in million) Portfolio Investment FIPI (6-Jan-2011) Local Companies (6-Jan-2011) Banks / DFI (6-Jan-2011) Mutual Funds (6-Jan-2011) NBFC (6-Jan-2011) Local Investors (6-Jan-2011) Other Organization (6-Jan-2011) (U.S $ in million) NCCPL GDR update Commodities Forex Reserves (1-Jan-11) Inflation CPI% (Jul 10-Nov 10) Exports (Jul 10-Nov 10) Imports (Jul 10-Nov 10) Trade Balance (Jul 10-Nov 10) Current A/C (Jul 10- Nov 10) Remittances (Jul 10 - Nov 10) Foreign Invest (Jul 10-Nov 10) Revenue (Jul 10-Nov 10) Foreign Debt (Sep 10) Domestic Debt (Nov 10) Repatriated Profit (Jul- Nov 10) LSM Growth (Oct 10) GDP Growth FY10E Per Capita Income FY10 Population $17.20bn 14.44% $8.88bn $15.37bn $(6.49)bn $(504)mn $4.43bn $746mn Rs 495bn $58.41bn Rs 5348.6bn $287.9mn -2.81% 4.10% $1,051 171.47mn 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 23.01 2.00 1.70 11.01 PKR/Shares 111.33 197.06 42.82 36.40 37.72 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) 29-Dec-2010 29-Dec-2010 29-Dec-2010 29-Nov-2010 06-Jan-2011 06-Jan-2011 06-Jan-2011 06-Jan-2011 06-Jan-2011 06-Jan-2011 06-Jan-2011 06-Jan-2011 06-Jan-2011 06-Jan-2011 06-Jan-2011 13.20% 13.41% 13.73% 14.00% 13.29% 13.47% 13.65% 14.01% 14.16% 14.29% 14.31% 14.35% 14.60% 14.78% 14.98% Money Market Update Symbols Buy (Rs) Sell (Rs) Australian $ 84.90 86.00 Canadian $ 85.00 86.00 Danish Krone 15.00 15.10 Euro 113.20 115.10 Hong Kong $ 10.50 10.60 Japanese Yen 1.016 1.042 Saudi Riyal 22.55 22.70 Singapore $ 65.30 66.30 Swedish Korona 12.00 12.70 Swiss Franc 86.70 86.90 U.A.E Dirham 23.15 23.35 UK Pound 133.00 134.60 US $ 85.55 85.85 Open Mkt Currency Rates Symbols Buying Selling TT Clean TT & OD Australian $ 85.32 85.52 Canadian $ 85.97 86.17 Danish Krone 15.10 15.14 Euro 112.56 112.82 Hong Kong $ 11.02 11.04 Japanese Yen 1.029 1.031 Saudi Riyal 22.84 22.89 Singapore $ 66.20 66.35 Swedish Korona 12.65 12.68 Swiss Franc 88.54 88.75 U.A.E Dirham 23.32 23.37 UK Pound 132.84 133.15 US $ 85.64 85.83 Inter-Bank Currency Rates Subscribe now Tel: 92-21-5311893-6 Fax: 92-21-5388428 Email: editor@ thefinancialdaily.com www.thefinancialdaily.com CITIES MAX-TEMP MIN ISLAMABAD 15°C -01°C KARACHI 24°C 08°C LAHORE 10°C 02°C FAISALABAD 10°C 00°C QUETTA 18°C -08°C RAWALPINDI 15°C 00°C Weather Forecast Index Close Change KSE 100 12,323.47 182.63 Nikkei 225 10,529.76 148.99 Hang Seng 23,786.30 28.48 Sensex 30 20,184.74 116.36 ADX 2,752.33 4.47 SSE COMP. 2,824.20 14.40 FTSE 100 6,055.16 11.30 *Dow Jones 11,714.11 -8.78 Global Indices ‘Taseer added new chapter to history’ See on Page 12 ISLAMABAD: LPG prices have been increased by Parco and powerful cartel of market- ing companies by Rs5 per-kg despite decline in its prices at international market and by way of this hike, price of domestic cylinder has gone up by Rs60 and commercial cylin- der by Rs240. The price has been raised without seeking permission from Ogra and in utter defiance of rules set by Ogra. With this upsurge, price of LPG has reached the highest level of its history in the coun- try. LPG price has been enhanced from Rs120 per kg to Rs 125 per kilogramme in Lahore, Gujranwala and Sialkot. In Karachi, the price has been scaled up from Rs105 to Rs110 per kilogram, in Peshawar, from Rs130 to Rs135 per kilogramme and in Rawalpindi, Kohat and Murree from Rs140 to Rs145 per kilo- gramme. The increase in the prices of LPG will take effect immedi- ately. Muhammad Irfan Khokhar chairman of LPG Distributors Association Pakistan and LPG Zonal stand- ing committee has said the increase is uncalled for and it be withdrawn immediately. He demanded of President Asif Ali Zardari, Prime Minister Syed Yousuf Raza Gilani and Chief Justice of Pakistan Iftikhar Muhammad See # 10 Page 11 LPG price goes up Rs5 per kilo ISLAMABAD: Parliamentary Commission on the implemen- tation of 18th amendment in the second-phase has decided in principal to hand over 4 more ministries to the provinces by Feb 28. The decision to this effect was made in a meeting of the commission chaired by Senator Raza Rabbani at the Parliament House. The four ministries that would be hand- ed over to provinces include special education, social wel- fare, culture, and tourism min- istries along with their assets. Besides these ministries, the subordinate departments of three ministries which include interior ministry, ministry of law and justice and ports and shipping would also be handed over to the provinces. told Online that the decision to shift ministry of health in the second phase to the provinces has been deferred. Members of the committee have showed complete satis- faction at the pace of the pro- ceedings. -Online 4 more ministries transfer by Feb28 Sub-dept of Ports& Shipping, Law Sources also to be transferred Aitzaz says not in Punjab Governor's race LAHORE: Former president of Supreme Court Bar Association and Pakistan Peoples Party leader Aitzaz Ahsan on Thursday ruled out his candidature for the slot of Punjab Governor. Talking to media after Qul of Salman Taseer at Governor House, he said the President, the Prime Minister and the party would decide about the new governor, adding more suitable personalities were available in the province for the slot and he was not in the race. To a question about the mur- der of Salman Taseer, he said that all investigation depart- ments should jointly investi- gate the case and it should be transparent. "The murder should not be termed in any other manner before the result of the investi- gations," he added. He said that element of vio- lence was increasing in politics, which had started during the era of General Ziaul Haq. He said that violence and sui- cide attacks on mosques, Imambarghas, churches and other worship places were growing, and expressed his apprehension that some ele- ments wanted to destroy the state. "Some foreign agencies are destabilising the country through anti-state activities in Balochistan," he added. He said that tolerance intro- duced by 'Soofis and Aulia' was See # 9 Page 11 Pakistan Day parade cancelled ISLAMABAD: Federal gov- ernment has decided to cancel the annual Pakistan Day - March 23 - armed forces parade for the fourth consecutive year due to the current security situ- ation of the country. The Pakistan Day Parade, the biggest event of the country's armed forces, which was scheduled for March 23 this year, has been cancelled by the federal govt with due consulta- tion with Chairman of the Joint Chiefs of Staff Committee Gen Shamim Wynne and military leadership, sources said. Sources told that military leadership was of the view that since a large number of troops are deployed at the eastern and western border of the country and are engaged in war on ter- ror thus it would not be possi- ble to move them for Pakistan Day parade. Moreover by canceling the parade expenditures worth of million of rupees could be saved. Sources said moreover, since See # 11 Page 11 ISLAMABAD: Secretary Finance Dr Farooq Masood has informed the Senate Standing committee for Communication that its development budget of Rs240 billion has been reduced to Rs120 billion because of financial crunch. As per details the Standing Committee presided over by chairman Wali Ahmed Badini was briefed by secretary finance Dr Farooq Masood that due to financial crunch the development funds of the min- istries have been slashed. The committee members have protested against the deci- sion and said they were assured by the PM that there would be no reduction in the develop- ment fund of Balochistan. The committee took notice of the protest and summoned the AGPR in the next session to submit its report. Chairman NHA informed the committee that Rs150 million for Lawari tunnel, and Rs200 million See # 8 Page 11 Development budget halved Staff Reporter KARACHI: State Bank of Pakistan has amended certain provisions of Prudential Regulations for Consumer Financing with immediate effect. According to a Circular (BPRD Circular No 1) issued here on Thursday, State Bank has revised Regulation R-7 pertaining to Maximum Card Limit. Under the revised regulation, banks/ DFIs shall ensure that overall credit card and person- al loan limit, both on secured as well as on unsecured basis, availed by one person from all banks/DFIs in aggregate should not exceed Rs5,000,000, at any point in time, subject to the condition that the overall unsecured/ clean facilities on account of credit card and personal loan of that individual do not exceed Rs2,000,000. Similarly, in Regulation R- 23, a new paragraph has been added as under: "Banks/DFIs shall ensure that overall personal loan lim- its and credit card limits, both on secured as well as on unse- cured basis, availed by one person from all banks/DFIs in aggregate should not exceed Rs5,000,000, at any point in time, subject to the condition that the overall unsecured/ clean facilities on account of personal loan and credit card of that individual do not exceed Rs2,000,000." Following the above-mentioned amendment, See # 6 Page 11 SBP rewrites credits rules Banks/ DFIs told to ensure loan limit ISLAMABAD: The Chief Justice of Pakistan Justice Iftikhar Mohammad Chaudhry Thursday described the report of Director General FIA Wasim Ahmad into Hajj scam as unsatisfactory and ordered comprehensive investigation into the scam. During hearing of the Hajj scam case, the court observed that the Director General FIA did not take any interest while the Interior Minister got the name of the main accused removed from the Exit Control List through an SMS. It also observed that this is not a small thing and Azam Swati lost his ministry due to this scam. Justice Khalil-ur Rahman Ramday observed that if he had been the head of DG FIA, he would have sent him to jail. Judge advised Advocate Latif Khosa not to try to turn the court into a political field. While ordering payment of 700 Riyals each to the pilgrims of Maktab -5 the seven mem- ber bench adjourned the hear- ing till 11th of January. Former Minister Azam Swati submitted before the court that he was not satisfied with the inquiry of the FIA and termed it as unsatisfactory. Azam Swati's lawyers said that the two witnesses in the Hajj scam Abdul Rehman and See # 12 Page 11 SC orders to dig deeper into scam CJ says Hajj corruption report unsatisfactory India in tears as Pakistan bans onion exports NEW DELHI: Dubbing Pakistan's decision to ban onion exports across the Wagah border as "shocking", India Thursday said the issue has been taken up with the concerned authorities in Islamabad. "It is shocking and unfortu- nate that Pakistan has banned onion exports to India via land route. We have urged them that the contracted quantities which were to come via the land route should be released," Commerce and Industry Minister Anand Sharma said here, reported PTI. He said the government is also exploring "all the opportuni- ties." Authorities in Pakistan stopped 300 trucks of onions bound for India at the Wagah border, saying exports had to be curbed to control rising prices in their own country. Sharma said that state-run State Trading Corporation (STC) and PEC had contracted onions from Pakistan. "The mat- ter has been discussed with the High Commissioner in Islamabad, who has already met the concerned officials in the neighbouring country." He said whatever decisions are taken should be implement- ed prospectively and the convoy of trucks should not have been stopped. Asked whether Pakistan's action was in retaliation to India restricting cotton exports, Sharma said New Delhi's deci- sion was not aimed at Pakistan. The government has put a ceil- ing of 55 lakh bales on cotton exports for the current season. However, a large quantity of See # 7 Page 11 Special Correspondent/ Agencies ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani on Thursday announced restoration of prices of POL products to the level of December 31, last year and withdrew the latest increase announced by the government. Making a policy statement on the issue in the National Assembly, he said the decision has been taken in deference to the demand of the public, par- liament and the political leader- ship. He said the decision was arrived at the meeting of lead- ers of all parliamentary parties in Islamabad where they were briefed by the Finance Minister and other members of the gov- ernment's economic team on the petroleum prices and the overall economic situation. Prime Minister said there was consensus in the meeting that the latest increase should be withdrawn. He said it has also been decided that a committee con- sisting of leaders of parliamen- tary parties or their nominees would be constituted within a week to formulate a strategy on what to do when prices of oil fluctuate in the international market. He asked parliamentary lead- ers to nominate their represen- tatives for the committee so that the issue is reviewed com- prehensively. Prime Minister said it was due to sagacity and concern displayed by the political lead- ership that the issue of POL prices has been resolved through consensus. He said he was scheduled to hold consultations with the par- liamentary leaders on Tuesday as decided by the House a day earlier but the meeting could not take place due to tragic assassination of Governor Punjab Salman Taseer. Leader of the opposition Chaudhry Nisar Ali Khan wel- comed the announcement and said by doing so the govern- ment has responded to the woes of the masses. He said people were facing economic difficulties and they were unable to bear the burden of hike in prices of POL prod- ucts. He also drew attention of the government towards gas load- shedding and its low pressure causing difficulties for domes- tic consumers. Chaudhry Nisar also regret- ted that immediately after assassination of the governor, some people have started describing it as a political mur- der. He pointed out that Mian Nawaz Sharif himself went to Rawalpindi General Hospital immediately after hearing about assassination of See # 5 Page 11 Govt rolls back POL price hike Gilani announces decision in National Assembly Parliamentary leaders taken on board; Opposition hails decision Staff Reporter KARACHI: Pakistan's for- eign exchange reserves rose to a record $17.20 billion in the week ending January 1, up from $16.42 billion the previ- ous week, the central bank said on Thursday. Reserves held by the State Bank of Pakistan (SBP) rose to $13.53 billion from $12.71 billion in the week ending Jan 1, while those held by com- mercial banks fell to $3.67 bil- lion from $3.71 billion, said Syed Wasimuddin, chief spokesman of the central bank. Pakistan received more than $633 million from the US for providing military and logisti- cal support to fight militancy, boosting reserves, Wasimuddin said. Pakistan's reserves previous- ly hit a record high of $17.10 billion in the week ending October 15 because of an increase in remittances from overseas Pakistanis and a nar- rowing trade deficit. Earlier the reserves got a boost in September after the IMF sent Pakistan $450 mil- lion and said that the money would go toward the budget to help with additional spending for flood relief and immediate foreign exchange needs. This was separate from the $11 billion IMF bailout pro- gramme, agreed in 2008. In May, Pakistan received $1.13 billion in the fifth tranche of the programme. FX reserves hit record $17.2bn ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani addressing during the Assembly Session at Parliament House. APP Karachi, Friday, January 7, 2011, Safar-ul-Muzaffar 2, Price Rs12 Pages 12

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Page 1: The Financial Daily-Epaper-07-01-2011

International

PM in Karachi, meets Governor Sindh

Pension thru banks nodded See on Page 12

US to send 1400 extra troops to Afghanistan See on Page 12

*Crude Oil (brent)$/bbl 95.38

*Crude Oil (WTI)$/bbl 89.42

*Cotton $/lb 147.30

*Gold $/ozs 1,368.60

*Silver $/ozs 29.19

Malaysian Palm $ 1,259

GOLD (NCEL) PKR 37,975

KHI Cotton 40Kg PKR 10,395

Yearly(Jul, 2010 up to 5-Jan-2011)

Monthly(Dec, 2010 up to-5-Jan-2011)

Daily (5-Jan-2011)

Total Portfolio Invest (31 Dec-2010)

180.20

-14.57

-23.06

2900

4.35

1.42

1.25

-1.84

-0.53

-4.23

-0.43

SCRA(U.S $ in million)

Portfolio Investment

FIPI (6-Jan-2011)

Local Companies (6-Jan-2011)

Banks / DFI (6-Jan-2011)

Mutual Funds (6-Jan-2011)

NBFC (6-Jan-2011)

Local Investors (6-Jan-2011)

Other Organization (6-Jan-2011)

(U.S $ in million)

NCCPL

GDR update

Commodities

Forex Reserves (1-Jan-11)

Inflation CPI% (Jul 10-Nov 10)

Exports (Jul 10-Nov 10)

Imports (Jul 10-Nov 10)

Trade Balance (Jul 10-Nov 10)

Current A/C (Jul 10- Nov 10)

Remittances (Jul 10 - Nov 10)

Foreign Invest (Jul 10-Nov 10)

Revenue (Jul 10-Nov 10)

Foreign Debt (Sep 10)

Domestic Debt (Nov 10)

Repatriated Profit (Jul- Nov 10)

LSM Growth (Oct 10)

GDP Growth FY10EPer Capita Income FY10Population

$17.20bn

14.44%

$8.88bn

$15.37bn

$(6.49)bn

$(504)mn

$4.43bn

$746mn

Rs 495bn

$58.41bn

Rs 5348.6bn

$287.9mn

-2.81%

4.10%

$1,051

171.47mn

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

23.01

2.00

1.70

11.01

PKR/Shares

111.33

197.06

42.82

36.40

37.72

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)

29-Dec-2010

29-Dec-2010

29-Dec-2010

29-Nov-2010

06-Jan-2011

06-Jan-2011

06-Jan-2011

06-Jan-2011

06-Jan-2011

06-Jan-2011

06-Jan-2011

06-Jan-2011

06-Jan-2011

06-Jan-2011

06-Jan-2011

13.20%

13.41%

13.73%

14.00%

13.29%

13.47%

13.65%

14.01%

14.16%

14.29%

14.31%

14.35%

14.60%

14.78%

14.98%

Money Market Update

Symbols Buy (Rs) Sell (Rs)

Australian $ 84.90 86.00

Canadian $ 85.00 86.00

Danish Krone 15.00 15.10

Euro 113.20 115.10

Hong Kong $ 10.50 10.60

Japanese Yen 1.016 1.042

Saudi Riyal 22.55 22.70

Singapore $ 65.30 66.30

Swedish Korona 12.00 12.70

Swiss Franc 86.70 86.90

U.A.E Dirham 23.15 23.35

UK Pound 133.00 134.60

US $ 85.55 85.85

Open Mkt Currency Rates

Symbols Buying Selling

TT Clean TT & OD

Australian $ 85.32 85.52

Canadian $ 85.97 86.17

Danish Krone 15.10 15.14

Euro 112.56 112.82

Hong Kong $ 11.02 11.04

Japanese Yen 1.029 1.031

Saudi Riyal 22.84 22.89

Singapore $ 66.20 66.35

Swedish Korona 12.65 12.68

Swiss Franc 88.54 88.75

U.A.E Dirham 23.32 23.37

UK Pound 132.84 133.15

US $ 85.64 85.83

Inter-Bank Currency Rates

Subscribe now

Tel: 92-21-5311893-6Fax: 92-21-5388428 Email: editor@ thefinancialdaily.com

www.thefinancialdaily.com

CITIES MAX-TEMP MIN

ISLAMABAD 15°C -01°C KARACHI 24°C 08°C LAHORE 10°C 02°C FAISALABAD 10°C 00°C QUETTA 18°C -08°C RAWALPINDI 15°C 00°C

Weather Forecast

Index Close Change

KSE 100 12,323.47 182.63

Nikkei 225 10,529.76 148.99

Hang Seng 23,786.30 28.48

Sensex 30 20,184.74 116.36

ADX 2,752.33 4.47

SSE COMP. 2,824.20 14.40

FTSE 100 6,055.16 11.30

*Dow Jones 11,714.11 -8.78

Global Indices

‘Taseer added newchapter to history’

See on Page 12

ISLAMABAD: LPG priceshave been increased by Parcoand powerful cartel of market-ing companies by Rs5 per-kgdespite decline in its prices atinternational market and byway of this hike, price ofdomestic cylinder has gone upby Rs60 and commercial cylin-der by Rs240.

The price has been raisedwithout seeking permissionfrom Ogra and in utter defianceof rules set by Ogra.

With this upsurge, price ofLPG has reached the highestlevel of its history in the coun-try.

LPG price has beenenhanced from Rs120 per kg toRs 125 per kilogramme inLahore, Gujranwala andSialkot.

In Karachi, the price hasbeen scaled up from Rs105 toRs110 per kilogram, inPeshawar, from Rs130 toRs135 per kilogramme and inRawalpindi, Kohat and Murreefrom Rs140 to Rs145 per kilo-gramme.

The increase in the prices ofLPG will take effect immedi-ately. Muhammad IrfanKhokhar chairman of LPGDistributors AssociationPakistan and LPG Zonal stand-ing committee has said theincrease is uncalled for and itbe withdrawn immediately.

He demanded of PresidentAsif Ali Zardari, PrimeMinister Syed Yousuf RazaGilani and Chief Justice ofPakistan Iftikhar Muhammad

See # 10 Page 11

LPG price goesup Rs5 per kilo

ISLAMABAD: ParliamentaryCommission on the implemen-tation of 18th amendment inthe second-phase has decidedin principal to hand over 4more ministries to theprovinces by Feb 28.

The decision to this effectwas made in a meeting of thecommission chaired bySenator Raza Rabbani at theParliament House. The fourministries that would be hand-ed over to provinces includespecial education, social wel-fare, culture, and tourism min-

istries along with their assets.Besides these ministries, the

subordinate departments ofthree ministries which includeinterior ministry, ministry oflaw and justice and ports andshipping would also be handedover to the provinces.

told Online that the decisionto shift ministry of health in thesecond phase to the provinceshas been deferred.

Members of the committeehave showed complete satis-faction at the pace of the pro-ceedings. -Online

4 more ministriestransfer by Feb28

Sub-dept of Ports& Shipping, Law Sources also to be transferred

Aitzaz saysnot in Punjab

Governor'srace

LAHORE: Former presidentof Supreme Court BarAssociation and PakistanPeoples Party leader AitzazAhsan on Thursday ruled outhis candidature for the slot ofPunjab Governor.

Talking to media after Qul ofSalman Taseer at GovernorHouse, he said the President,the Prime Minister and theparty would decide about thenew governor, adding moresuitable personalities wereavailable in the province for theslot and he was not in the race.

To a question about the mur-der of Salman Taseer, he saidthat all investigation depart-ments should jointly investi-gate the case and it should betransparent.

"The murder should not betermed in any other mannerbefore the result of the investi-gations," he added.

He said that element of vio-lence was increasing in politics,which had started during theera of General Ziaul Haq.

He said that violence and sui-cide attacks on mosques,Imambarghas, churches andother worship places weregrowing, and expressed hisapprehension that some ele-ments wanted to destroy thestate. "Some foreign agenciesare destabilising the countrythrough anti-state activities inBalochistan," he added.

He said that tolerance intro-duced by 'Soofis and Aulia' was

See # 9 Page 11

PakistanDay paradecancelled

ISLAMABAD: Federal gov-ernment has decided to cancelthe annual Pakistan Day -March 23 - armed forces paradefor the fourth consecutive yeardue to the current security situ-ation of the country.

The Pakistan Day Parade, thebiggest event of the country'sarmed forces, which wasscheduled for March 23 thisyear, has been cancelled by thefederal govt with due consulta-tion with Chairman of the JointChiefs of Staff Committee GenShamim Wynne and militaryleadership, sources said.

Sources told that militaryleadership was of the view thatsince a large number of troopsare deployed at the eastern andwestern border of the countryand are engaged in war on ter-ror thus it would not be possi-ble to move them for PakistanDay parade.

Moreover by canceling theparade expenditures worth ofmillion of rupees could besaved.

Sources said moreover, since See # 11 Page 11

ISLAMABAD: SecretaryFinance Dr Farooq Masood hasinformed the Senate Standingcommittee for Communicationthat its development budget ofRs240 billion has been reducedto Rs120 billion because offinancial crunch.

As per details the StandingCommittee presided over by

chairman Wali Ahmed Badiniwas briefed by secretaryfinance Dr Farooq Masood thatdue to financial crunch thedevelopment funds of the min-istries have been slashed.

The committee membershave protested against the deci-sion and said they were assuredby the PM that there would be

no reduction in the develop-ment fund of Balochistan.

The committee took notice ofthe protest and summoned theAGPR in the next session tosubmit its report. ChairmanNHA informed the committeethat Rs150 million for Lawaritunnel, and Rs200 million

See # 8 Page 11

Development budget halved

Staff Reporter

KARACHI: State Bank ofPakistan has amended certainprovisions of PrudentialRegulations for ConsumerFinancing with immediateeffect.

According to a Circular(BPRD Circular No 1) issuedhere on Thursday, State Bankhas revised Regulation R-7pertaining to Maximum CardLimit.

Under the revised regulation,banks/ DFIs shall ensure thatoverall credit card and person-al loan limit, both on securedas well as on unsecured basis,availed by one person from allbanks/DFIs in aggregateshould not exceedRs5,000,000, at any point intime, subject to the condition

that the overall unsecured/clean facilities on account ofcredit card and personal loan ofthat individual do not exceedRs2,000,000.

Similarly, in Regulation R-23, a new paragraph has beenadded as under:

"Banks/DFIs shall ensurethat overall personal loan lim-its and credit card limits, bothon secured as well as on unse-cured basis, availed by oneperson from all banks/DFIs inaggregate should not exceedRs5,000,000, at any point intime, subject to the conditionthat the overall unsecured/clean facilities on account ofpersonal loan and credit card ofthat individual do not exceedRs2,000,000." Following theabove-mentioned amendment,

See # 6 Page 11

SBP rewritescredits rules

Banks/ DFIs told to ensure loan limit

ISLAMABAD: The ChiefJustice of Pakistan JusticeIftikhar Mohammad ChaudhryThursday described the reportof Director General FIAWasim Ahmad into Hajj scamas unsatisfactory and orderedcomprehensive investigationinto the scam.

During hearing of the Hajjscam case, the court observedthat the Director General FIAdid not take any interest whilethe Interior Minister got thename of the main accusedremoved from the Exit ControlList through an SMS.

It also observed that this isnot a small thing and AzamSwati lost his ministry due tothis scam.

Justice Khalil-ur RahmanRamday observed that if hehad been the head of DG FIA,he would have sent him to jail.

Judge advised AdvocateLatif Khosa not to try to turnthe court into a political field.

While ordering payment of700 Riyals each to the pilgrimsof Maktab -5 the seven mem-ber bench adjourned the hear-ing till 11th of January.

Former Minister Azam Swatisubmitted before the court thathe was not satisfied with theinquiry of the FIA and termedit as unsatisfactory.

Azam Swati's lawyers saidthat the two witnesses in theHajj scam Abdul Rehman and

See # 12 Page 11

SC orders to digdeeper into scam

CJ says Hajj corruption report unsatisfactory

India in tearsas Pakistanbans onion

exports NEW DELHI: DubbingPakistan's decision to ban onionexports across the Wagah borderas "shocking", India Thursdaysaid the issue has been taken upwith the concerned authoritiesin Islamabad.

"It is shocking and unfortu-nate that Pakistan has bannedonion exports to India via landroute. We have urged them thatthe contracted quantities whichwere to come via the land routeshould be released," Commerceand Industry Minister AnandSharma said here, reported PTI.

He said the government is alsoexploring "all the opportuni-ties."

Authorities in Pakistanstopped 300 trucks of onionsbound for India at the Wagahborder, saying exports had to becurbed to control rising prices intheir own country.

Sharma said that state-runState Trading Corporation(STC) and PEC had contractedonions from Pakistan. "The mat-ter has been discussed with theHigh Commissioner inIslamabad, who has already metthe concerned officials in theneighbouring country."

He said whatever decisionsare taken should be implement-ed prospectively and the convoyof trucks should not have beenstopped.

Asked whether Pakistan'saction was in retaliation to Indiarestricting cotton exports,Sharma said New Delhi's deci-sion was not aimed at Pakistan.The government has put a ceil-ing of 55 lakh bales on cottonexports for the current season.

However, a large quantity of See # 7 Page 11

Special Correspondent/Agencies

ISLAMABAD: PrimeMinister Syed Yousuf RazaGilani on Thursday announcedrestoration of prices of POLproducts to the level ofDecember 31, last year andwithdrew the latest increaseannounced by the government.

Making a policy statement onthe issue in the NationalAssembly, he said the decisionhas been taken in deference tothe demand of the public, par-liament and the political leader-ship.

He said the decision wasarrived at the meeting of lead-ers of all parliamentary partiesin Islamabad where they werebriefed by the Finance Ministerand other members of the gov-ernment's economic team onthe petroleum prices and theoverall economic situation.

Prime Minister said there wasconsensus in the meeting that

the latest increase should bewithdrawn.

He said it has also beendecided that a committee con-sisting of leaders of parliamen-tary parties or their nomineeswould be constituted within aweek to formulate a strategy onwhat to do when prices of oilfluctuate in the internationalmarket.

He asked parliamentary lead-ers to nominate their represen-tatives for the committee sothat the issue is reviewed com-prehensively.

Prime Minister said it wasdue to sagacity and concerndisplayed by the political lead-ership that the issue of POLprices has been resolvedthrough consensus.

He said he was scheduled tohold consultations with the par-liamentary leaders on Tuesdayas decided by the House a dayearlier but the meeting couldnot take place due to tragicassassination of Governor

Punjab Salman Taseer.Leader of the opposition

Chaudhry Nisar Ali Khan wel-comed the announcement andsaid by doing so the govern-ment has responded to the woesof the masses.

He said people were facingeconomic difficulties and theywere unable to bear the burdenof hike in prices of POL prod-ucts.

He also drew attention of thegovernment towards gas load-shedding and its low pressurecausing difficulties for domes-tic consumers.

Chaudhry Nisar also regret-ted that immediately afterassassination of the governor,some people have starteddescribing it as a political mur-der.

He pointed out that MianNawaz Sharif himself went toRawalpindi General Hospitalimmediately after hearingabout assassination of

See # 5 Page 11

Govt rolls backPOL price hike

Gilani announces decision in National Assembly

Parliamentary leaders taken on board; Opposition hails decision

Staff Reporter

KARACHI: Pakistan's for-eign exchange reserves rose toa record $17.20 billion in theweek ending January 1, upfrom $16.42 billion the previ-ous week, the central banksaid on Thursday.

Reserves held by the StateBank of Pakistan (SBP) roseto $13.53 billion from $12.71billion in the week ending Jan1, while those held by com-mercial banks fell to $3.67 bil-lion from $3.71 billion, saidSyed Wasimuddin, chiefspokesman of the centralbank.

Pakistan received more than$633 million from the US forproviding military and logisti-cal support to fight militancy,

boosting reserves,Wasimuddin said.

Pakistan's reserves previous-ly hit a record high of $17.10billion in the week endingOctober 15 because of anincrease in remittances fromoverseas Pakistanis and a nar-rowing trade deficit.

Earlier the reserves got aboost in September after theIMF sent Pakistan $450 mil-lion and said that the moneywould go toward the budget tohelp with additional spendingfor flood relief and immediateforeign exchange needs.

This was separate from the$11 billion IMF bailout pro-gramme, agreed in 2008.

In May, Pakistan received$1.13 billion in the fifthtranche of the programme.

FX reserves hitrecord $17.2bn

ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani addressing during the Assembly Session at Parliament House. APP

Karachi, Friday, January 7, 2011, Safar-ul-Muzaffar 2, Price Rs12 Pages 12

Page 2: The Financial Daily-Epaper-07-01-2011

2 Friday, January 7, 2011

TV PROGRAMMES

FRIDAY

Time Programmes

7:00 News

8:00 News

9:00 News

11:00 News

11:05 Headlines

13:10 Newsbeat (Rpt)

14:10 Tonight With

Jasmeen (Rpt)

15:00 News

16:00 News

17:30 Samaa Metro

18:00 News

18:30 Samaa Sports

19:30 Crime Scene

20:03 Newsbeat

21:00 News

22:03 Awam Ki Awaz

23:00 News

23:30 24

ISLAMABAD: FederalMinister for Food andAgriculture, Nazar M.Gondal has said that thegovernment is committedto protect the interests ofthe farming communityand will make sure thatthey get the support priceof Rs.950 per 40 kilogram.

The minister was chair-ing a meeting of a commit-tee constituted byEconomic CoordinationCommittee to review theexisting purchase policy ofwheat here on Thursday.

"State Bank of Pakistan(SBP) will facilitate buyers

of both the public and pri-vate sectors to enable themto purchase wheat proper-ly. At present we haveenough stocks of wheat forfulfilling the localdemands till the harvest ofthe upcoming crop. Norestrictions on the move-ment of the commoditywill be imposed. The gov-ernments of KhyberPakhtunkhwa andBalochistan are requestedto ensure the smoothmovement of commodityand discourage the inter-provincial restrictions", theminister added.-APP

Govt to protectfarmers’ interest

TFD Report

KARACHI: Keeping inview the grievances beingfaced by the general pub-lic due to additional taxon development work inDefence/Clifton areas,MNA Khushbakht Shujat, while re-viewing the sit-uation during a meeting atDCRC, urged the con-cerned authority to refrainfrom imposing any newtax on residents.

Besides residents ofDefence, Clifton themeeting was also attendedby Muqeem Alam MPA,Imran Mirza, ErumMirza, Zubair Ahmad, Dr.

Nasir and other officialsfrom DCRC.

The meeting expresseddeep concern over impo-sition of additional taxand it was decided that inthe on going area of infla-tion when people arehardly able to make theirdaily earnings, DHA willnot be allowed to furtheramplify the grievancesbeing faced by the alreadyoverburdened masses.

It was further resolvedthat they will soon comeup with a feasible solutionin this regards with a viewto resolve the issues beingfaced by the angry localresidents.

Don't overbudren residents

‘No new taxesbe imposed inDHA, Clifton’

Staff Reporter

ISLAMABAD: ThePakistan automated cus-toms computerized system(PaCCS) enjoys awe-inspiring support of thetrade community acrossthe country. The FederalBoard of Revenue (FBR)has agreed to talk toAgility during this week.Agility is Kuwait-basedLogistics Company andlaunched PaCCS in coun-try in 2005.

During the meeting, offi-

cials of FBR and Agilitywill discuss the opportuni-ties to continue PaCCSand its expansion to otherterminals also. The FBRofficials may ask Agility tomodify the system as perthe requirements of tradecommunity.

The negotiation betweenthe officials of both com-panies was lauded by thetrade community andtermed it necessary fornational kitty. The FederalBoard of Revenue's multi-farious efforts to meet the

tax revenue target withoutfurther burdening industryand businesses are onlypossible if the system isautomated, say traders.

The manual proceduresto clear GoodsDeclarations have kept usbehind neighbors in manyfields and this is main rea-son behind our backward-ness, traders observed. Thecountry has gained in bil-lions of Rs from PaCCS,which might otherwisehave gone into the pocketsof corrupt officials.

FBR-Agility todiscuss automation

TFD Report

PESHAWAR: TheGovernor KhyberPakhtunkhwa OwaisAhmed Ghani has urged allthe commercial banksoperating in FATA toextend loaning and financ-ing facility to their FATAclients adding that it wasunfair to keep their clientsdeprived of it despite get-ting huge deposits fromthem.

"When they are gettinghandsome deposits fromtheir clients in FATA, theymust provide them withloaning facility as well",the Governor stressedwhile addressing the cere-

mony of opening of firstIslamic Banking branch ofBank of Khyber in Jamrud,Khyber Agency. AttaullahKhan, Additional ChiefSecretary Government ofKhyber Pakhtunkhwa andChairman Board ofDirectors BoK, BilalMustafa ManagingDirector BoK, SikandarQayum Secretary toGovernor and ShafirullahPolitical Agent KhyberAgency, BoK board ofdirectors membersMaqsood Khan andMuhammad Asif , Bank'sGroup Head for IslamicBanking Arbab RiazAhmad, Group HeadCredit Management Imran

Samad and Group HeadHRD Ayub Hamid werealso present in the ceremo-ny.

The Governor appreciat-ed the Bank of Khyber forits unique introduction inFATA by introducingIslamic Banking in tribalareas and congratulated themanagement of the Bankon this decision.

He said it was an appre-ciative step particularly inthe current scenario whenthe government was mak-ing all out efforts to reviveand consolidate the socio-economic conditions inFATA and it would certain-ly supplement the govern-ment efforts in this regard.

First branch opened at Jamrud

BoK starts Islamicbanking in Fata

Staff Correspondent

LAHORE: PML-N seniorleader and MemberNational Assembly(MNA) MohammedPervez Malik has said thatPakistan Muslim League -N wants the continuity ofdemocratic system in thecountry but it was PPPleadership which is stum-bling himself and trem-bling the public confi-dence on the democraticsystem by taking anti-nation steps like hike inutility prices, massive gasand electricity load shed-ding, aggravating law andorder situation and mas-sive borrowing. "PML-N

wants the prosperity ofPakistani nation and wouldnot compromise on theinterests of Pakistan at anycost."

In a press statementissued here Thursday,Pervez Malik said thatpresent regime has disap-pointed the all segments ofsociety and failed to showtheir commitment inresolving the difficultiesbeing faced by thePakistani nation. He saidthat it was the flawed poli-cies and ghastly perform-ance of PPP-led govern-ment which showed themthis day when not a singlesoul was ready to supportthem.

He said the presentregime has thrown thecountry in the swamp ofcrisis. He said that thebusiness community andmasses, on one hand, arefacing prolonged electrici-ty and gas crisis, worsen-ing law and order situa-tion, soaring inflation andrising corruption, while onthe other, being tormentedby the luxurious expendi-tures of the government.

He said the federal gov-ernment has borrowed Rs482 billion from bankingsystem for budgetary sup-port during the first halfof current fiscal yearbecause of rising currentexpenditure.

PML-N leaderlashes out at PPP

Staff Correspondent

ISLAMABAD: In orderto foster a transparent andefficient securities marketand to safeguard theinvestors' interest, theSecurities Market Divisionof the Securities andExchange Commission ofPakistan (SECP) tookenforcement actions andpenalized the market par-ticipants in grave violationof fair market practices, byissuing three orders in themonth of December, 2010.

As a stringent measure torestrain abusive marketactivities, two separateorders were issued againstthe Chief Executive

Officer of a listed compa-ny and its associated com-pany, consequent to theirindulgence in an associat-ed scheme of InsiderTrading in the shares of alisted company.

Moreover, in anotherinstance of market abuseand insider trading, puni-tive action was taken andfine was imposed againstdirector of a public limitedcompany who wasinvolved in Insider tradingin a listed company. Theabusive activity was relat-ed to the trading by thedirector of the public lim-ited company prior to itsannouncement regardingacquisition of a listed

company.As a part of its routine

surveillance and monitor-ing activities, two warningletters were also issued tonon-compliant members ofthe stock exchange forblank sales in addition to awarning letter issued to anindividual investor forexecution of wash trades.

Furthermore, in order tosafeguard the interest ofsmall investors a showcause notice was servedto a beneficial owner of alisted company for therecovery of Tenderablegain of Rs12.739 millionunder section 224 of theCompanies Ordinance,1984.

SECP takespunitive actionagainst firms

FRIDAY

Time Programmes

8:00 Chai Time (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 Power Lunch

13:00 News

13:05 Islamabad Say (Rpt)

14:00 News

15:05 Siyasat Mana Hai

(Rpt)

16:00 News

16:02 Akhri Suada

16:30 Karobari Dunya

17:00 News

17:05 Ghar Ka Kharch

(Rpt)

18:00 News

18:05 Chai Time

19:00 Headlines

19:30 Mang Raha Hai

Pakistan

20:00 Headlines

20:05 Islamabad Say

21:00 Pakistan Aaj Raat

22:00 Headlines

22:05 Dosra Pehlu

23:00 News

23:05 Siyasat Mana Hai

(Rpt)

0:00 News

Dental Health

AwarenessProgram

KARACHI: Inline withits policy for better childdevelopment, theDawood Public Schoolorganized a 3-day DentalHealth AwarenessProgram for the studentsof primary section at itspremises.

More than eight hun-dred girl students wereeducated about the dentalhealth issues in order tosensitize them about thehazards of dental illness.

The program compriseda demonstration of thecorrect methods of brush-ing the teeth and the haz-ards of improper brush-ing or no brushing at all.Brushing charts were dis-tributed among the stu-dents to color the sunwhen they brush in themorning, and the moon,when they brush atnight.-PR

Recordhandling

of oilseedsat PQA

KARACHI: Pakistan'sfirst fully automated drybulk cargo terminal FAP atPQA, has created a recordby discharging 16,500 met-ric tons of canola oilseedsin a day, comfortably bet-tering the previous one dayrecord of about 9,500 met-ric tons achieved atKarachi Port Trust (KPT).

MV Panagiotis D carry-ing about 55,000 tons ofCanola docked at the11.5m draft dedicated andpurposed built jetty at FAP,and the cargo of oilseedwas the largest ever in onevessel to dock at any portin Pakistan. The FAP ter-minal has the ability todock vessels with 14meters of draft but the cur-rent draft is restricted to11.5m of draft by PortQasim Authority.-Online

Change inaviation

policydiscussed

RAWALPINDI: FederalMinister for Defence,Chaudhry Ahmad Mukhtar,has directed the CivilAviation Authority (CAA)to expedite work on NewBenazir BhuttoI n t e r n a t i o n a lA i r p o r t ( N B B I A ) ,Islamabad so as to accom-plish the project with in thestipulated time.

He gave these directionswhile chairing a meeting inMinistry of Defence toreview the progress ofNBBIA project.

Earlier, the DirectorGeneral, CAA, gave adetailed presentation to theMinister highlighting thefinancial cost and variousaspects of the project.-NNI

‘Govtto solve

problemsof staff’

KARACHI: Advisor toChief Minister Sindh onInformation SharmilaFaruqui has said that thoseinstitutions that take careof their employees alwaysmake progress and SindhInformation Departmenthas always taken care ofits employees.

This she said whileaddressing as a chiefguest in a ceremony hereat Sindh Informationdepartment, held in hon-our of Deputy DirectorImdad Hussain andInformation OfficerAbdul Wahid Memon ontheir retirement.

The Advisor said thatSindh InformationDepartment was one of themost important organs ofthe Sindh government,because it worked as abridge between the govern-ment and the masses and itsofficers were also veryimportant and they workedfor the promotion of gov-ernment activities.-Online

Baig'sNew Year

gift of riceto Manila

Staff Reporter

KARACHI: Dr MirzaIkhtiar Baig, Advisor,Government of Pakistan hassent 100 bags, 5kg eachPakistani Basmati rice toManila, Philippines as NewYear gift through RiceExporters Association ofPakistan (REAP) to promotePakistani rice in Philippinesthrough distribution to thedignitaries and senior offi-cials of the Rice ImportCorporation, Manila. On thelast visit of the FederalAdvisor to Manila, headvised the Ambassador andCommercial Counselor ofPakistan in Manila to intro-duce and promote PakistaniBasmati rice in Philippines.

Dr Baig, who is also Hon.Consul General of Yemen inSindh on his recent visit toSana'a, Yemen to attend 6thSession of Pak-Yemen JointMinisterial Commissionmeeting was pleased withthe overwhelming responsereceived from the leadingYemeni buyers. Dr. Baigsaid there exists a tremen-dous potential of exports ofPakistani products inYemen.

Dr Baig also spoke toCEO TDAP Tariq Iqbal Puriand discussed to organizesector specific exhibitions inPakistan throughout the yearparticularly textile, leather,foodstuff, light engineeringgoods, cutlery, sportswear,surgical instruments, carpetetc as well as to take part inthe world largest exhibitionsparticularly Canton Fair inChina.

LCCIgreetsLEJA

Staff Reporter

LAHORE: The LCCIPresident Shahzad AliMalik, Senior VicePresident SheikhMohammad Arshad andVice President Sohail Azharhave congratulated newlyelected Lahore EconomicJournalists Association(LEJA) President SyedJawwad Ali Rizvi, VicePresident Mian ShahidNadeem, General SecretaryImran Adnan and FinanceSecretary Rizwan Ali.

In a Press statementissued here Thursday, Theysaid that LEJA newly elect-ed office-bearers were richwith vast experience andwell aware with the issuedbeing faced by the trade,industry and economy.

NewChairmanof ICMAP,

Karachi KARACHI: The KarachiBranch Council (KBC) ofthe Institute of Cost andManagement Accountantsof Pakistan (ICMAP) haselected KBC office-bear-ers for the year 2011.

An announcement onThursday said that TariqHussain has been electedas Chairman.

Ehsan Elahi Vohra hasbeen elected as ViceChairman, Anis-ur-Rehman as Secretary andMuhammad Yousuf asTreasurer.

Other KBC memberselected were: MuhammadAmir Zaheer, Imran,Ahsan Ali Syed and SyedAdnan Hussain Shah.-APP

ISLAMABAD: Chief Justice Islamabad High Court along with two other judges called on Chief Justice ofPakistan, Justice Iftikhar Muhammad Chaudhry in Supreme Court.-APP

JAMRUD: Governor Khyber Pakhtunkhwa Owais Ahmed Ghaniinaugurating the Bank of Khyber, Jamrud Branch to extend the

Islamic Banking facility to FATA.-Staff Photo

KARACHI: Syed Johar Ali Qandhari and S M Muneer presenting KATI shieldto DIG East, Shoukat Ali Shah.-Staff Photo

LAHORE: Students taking keen interest in booksduring Book Fair organized by the Government

College University Lahore.-APP

Unfair practices

Page 3: The Financial Daily-Epaper-07-01-2011

MUMBAI: The Indian rupeesnapped a two-day losingstreak and rose on Thursday ascustodian banks and exportersstepped up dollar sales butweak domestic shares and lategains in the dollar versusmajors weighed on sentiment.

The partially convertible rupeeclosed at 45.245/255 per dollar,off its high of 45.19 but still 0.2per cent stronger than 45.33/34at close on Wednesday. Earlier inthe session, the rupee haddropped as low as 45.43, its low-est since Dec. 20.

"There were good inflowstoday, and also selling fromexporters, both clubbed togetherhelped the rupee retreat from itslows," said Vikas Chittiprolu, asenior foreign exchange dealerwith state-run Andhra Bank.

Dealers said there was a lotof dollar selling by some largeforeign banks possibly inflowstowards purchases of freshdebt. Foreign institutionalinvestor (FII) limits in govern-ment and corporate debt wereallotted in early December.

Weak local shares also hurtsentiment, traders said.

Foreign investors bought arecord $29.3 billion worth ofshares in 2010, compared with$17.5 billion net inflow in2009. In the first two tradingsessions of 2011, foreign

investors pumped $269.5 mil-lion into shares.

India's food inflation acceler-ated for the fifth straight weekto the highest in more than ayear, reinforcing fears it hasspilt over to broader prices andcementing expectations of arate increase in January.

The central bank is expectedto raise rates by a total of 75basis points in 2011, a Reuterspoll of 17 analysts onWednesday showed.

One-month offshore non-deliverable forward contractswere quoted at 45.47, weakerthan the onshore spot rate.

In the currency futures mar-ket, the most traded near-month dollar-rupee contractson the National StockExchange and MCX-SX closedat 45.44 and 45.4350, with thetotal traded volume on the twoexchanges at about $6.9 bil-lion. -Reuters

Indian rupee snaps2-day losing streak

3Friday, January 7, 2011

Currencies Rate

Karachi: The following are the London Inter-Bank Offered Rates (LIBOR).

British Members Association Interest Settlement Rates.

AT 11:00 LONDON TIME 06/01/2011

A USD GBP CAD EUR JPY

O/N 0.24375 0.55813 0.92167 0.34250 SN 0.09438

1WK 0.25438 0.57063 0.99167 0.49875 0.10288

2WK 0.25656 0.57438 1.04083 0.55875 0.10938

1MO 0.26125 0.59000 1.09500 0.69375 0.12125

2MO 0.28250 0.64625 1.15083 0.81000 0.15000

3MO 0.30313 0.76000 1.23833 0.93313 0.18688

4MO 0.34625 0.84188 1.30833 0.99688 0.24288

5MO 0.40263 0.94813 1.37000 1.08250 0.30000

6MO 0.45719 1.05438 1.44667 1.17813 0.34750

7MO 0.51075 1.13000 1.51333 1.22813 0.39750

8MO 0.56500 1.21563 1.58917 1.28313 0.44188

9MO 0.61781 1.29750 1.66333 1.33063 0.48750

10MO 0.66969 1.37688 1.73750 1.38188 0.51438

11MO 0.72469 1.44563 1.82333 1.42438 0.54000

12MO 0.78525 1.51250 1.90167 1.46750 0.56625

Countries Selling Buying BuyingTT & OD TT Clean OD/T.CHQ

U.S.A. 85.85 85.65 85.46U.K. 133.15 132.84 132.54EURO 112.82 112.56 112.30CANADA 86.17 85.97 85.75SWITZERLAND 88.75 88.54 88.31AUSTRALIA 85.52 85.32 85.10SWEDEN 12.68 12.65 12.62JAPAN 1.03 1.03 1.03NORWAY 14.51 14.47 14.44SINGAPORE 66.35 66.20 66.03DENMARK 15.14 15.10 15.06SAUDI ARABIA 22.89 22.84 22.78HONG KONG 11.04 11.02 10.99CHINA 12.96 12.93 12.90KUWAIT 304.55 303.84 303.04MALAYSIA 27.95 27.88 27.81NEW ZEALAND 64.95 64.79 64.62QATAR 23.58 23.53 23.46U.A.E. 23.37 23.32 23.26KR WON 0.08 0.08 0.08THAILAND 2.84 2.83 2.82

London Inter Bank Offered Rates (LIBOR)

Name Bid Ask High Low

EUR-USD 1.3119 1.3121 1.3175 1.3088

USD-CHF 0.9643 0.9646 0.9748 0.9614

GBP-USD 1.5518 1.5523 1.5559 1.5466

USD-CAD 0.9953 0.9957 0.9966 0.9926

AUD-USD 0.9971 0.9976 1.0016 0.9950

EUR-JPY 108.9300 108.9700 109.6700 108.8200

EUR-GBP 0.8449 0.8451 0.8485 0.8435

EUR-CHF 1.2652 1.2655 1.2723 1.2612

GBP-JPY 128.9600 129.0100 129.2700 128.4600

CHF-JPY 86.0800 86.1400 86.3200 85.6800

CAD-CHF 0.9682 0.9689 0.9762 0.9668

Gold 1369.2000 1369.6100 1379.7500 1367.8000

Silver 29.0400 29.1100 29.5300 28.9300

As per 22.00 PST

Time Source Events Forecast Previous

11:45 CHF Unemployment Rate 3.6% 3.6%

12:00 EUR German Retail Sales m/m 0.6% 2.3%

12:00 EUR German Trade Balance 14.5B 14.3B

7th-8th GBP Halifax HPI m/m -0.3% -0.1%

15:00 EUR Unemployment Rate 10.1% 10.1%

15:00 EUR Final GDP q/q 0.4% 0.4%

16:00 EUR German Industrial Production m/m -0.1% 2.9%

17:00 CAD Employment Change 19.1K 15.2K

17:00 CAD Unemployment Rate 7.7% 7.6%

18:30 USD Non-Farm Employment Change 159K 39K

18:30 USD Unemployment Rate 9.7% 9.8%

Source Events Actual Forecast Previous

CHF CPI m/m 0.0% -0.1% 0.2%

GBP Services PMI 49.7 52.9 53.0

EUR Retail Sales m/m -0.8% 0.3% 0.0%

EUR German Factory Orders m/m 5.2% 1.0% 1.6%

USD Unemployment Claims 409K 400K 391K

CAD Ivey PMI 50.0 53.3 57.5

USD Natural Gas Storage -135B -136B

Previous Day

Top Economic Events

Central Bank Next Meeting Last Change Current

Interest Rate

Bank of England January 13, 2011 March 5, 2009 0.50%

European Central Bank January 13, 2011 May 7, 2009 1%

Swiss National Bank March 17, 2011 March 12, 2009 0.25%

The Reserve Bank of Australia February 1, 2011 November 2, 2010 4.75%

Bank of Canada n/a September 8, 2010 1%

Federal Reserve n/a December 16, 2008 0.25%

Bank of Japan n/a December 19, 2008 0.10%

Major Central Banks Overview

Division of National Bank of Pakistan (NBP)KARACHI, January 06,2011 Treasury Management Division of National Bank ofPakistan (NBP) Monday issued the following Exchange rates:

1WEEK 2 WEEK 1 MONTH 3 MONTH 6 MONTH 9 MONTH 1YEAR 2YEARS

BID ASK BID ASK BID ASK BID ASK BID ASK BID ASK BID ASK BID ASK

ABPL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

ABLN 12.75 13.25 12.70 13.20 12.80 13.30 13.20 13.45 13.45 13.70 13.55 14.05 13.65 14.15 13.70 14.20

JSBL 12.60 13.10 12.75 13.25 12.85 13.35 13.25 13.50 13.45 13.70 13.50 14.00 13.70 14.20 14.00 14.50

ASPK 12.60 13.10 12.70 13.20 12.80 13.30 13.20 13.45 13.40 13.65 13.50 14.00 13.65 14.15 13.75 14.25

CIPK 12.70 13.20 12.75 13.25 12.80 13.30 13.25 13.50 13.45 13.70 13.60 14.10 13.70 14.20 13.90 14.40

DBPK 12.50 13.00 12.60 13.10 12.70 13.20 13.00 13.25 13.15 13.40 13.30 13.80 13.50 14.00 13.60 14.10

FBPK 12.70 13.20 12.70 13.20 12.75 13.25 13.25 13.50 13.45 13.70 13.55 14.05 13.75 14.25 13.90 14.40

FLAH 12.70 13.20 12.75 13.25 12.80 13.30 13.20 13.45 13.40 13.65 13.50 14.00 13.65 14.15 13.75 14.25

HBPK 12.60 13.10 12.70 13.20 12.80 13.30 13.20 13.45 13.40 13.65 13.50 14.00 13.65 14.15 13.75 14.25

HKBP 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

NIPK 13.00 13.50 13.00 13.50 13.25 13.75 13.50 13.75 13.60 13.85 13.65 14.15 13.70 14.20 13.75 14.25

HMBP 12.70 13.20 12.75 13.25 12.85 13.35 13.25 13.50 13.35 13.60 13.50 14.00 13.60 14.10 13.70 14.20

SAMB 12.60 13.10 12.75 13.25 12.90 13.40 13.30 13.55 13.50 13.75 13.50 14.00 13.65 14.15 13.75 14.25

MCBK 12.50 13.00 12.50 13.00 12.60 13.10 13.15 13.40 13.30 13.55 13.40 13.90 13.50 14.00 13.75 14.25

NBPK 12.70 13.20 12.80 13.30 12.80 13.30 13.20 13.45 13.30 13.55 13.50 14.00 13.65 14.15 13.75 14.25

SCPK 12.50 13.00 12.60 13.10 12.70 13.20 13.10 13.35 13.25 13.50 13.45 13.95 13.50 14.00 13.70 14.20

UBPL 12.70 13.20 12.70 13.20 12.70 13.20 13.20 13.45 13.40 13.65 13.50 14.00 13.70 14.20 13.70 14.20

AVE 12.66 13.16 12.72 13.22 12.79 13.29 13.22 13.47 13.40 13.65 13.51 14.01 13.66 14.16 13.74 14.24

Karachi Inter Bank Offered Rates (KIBOR)

Karachi: The following are the Karachi Inter-Bank Offered Rates (KIBOR)06/01/2011

Period AUD/USD EUR/CHF EUR/JPY EUR/USD GBP/USD NZD/USD USD/CAD USD/CHF

1 week 0.20 0.06 0.62 0.77 0.44 0.60 -0.57 -0.761 month 0.87 -0.84 -0.73 0.20 -0.69 0.58 -0.65 -0.933 months 0.10 0.55 0.58 0.85 0.33 0.10 0.24 -0.316 months 0.72 0.17 0.59 0.90 0.51 0.69 -0.59 -0.731 year 0.22 0.65 0.78 0.73 0.14 0.04 -0.22 -0.062 years -0.36 0.66 0.57 0.48 -0.13 -0.36 0.44 0.20

Currencies CorrelationEUR/GBP

KASB BMA ELXIR GSL ICSL JSCM AvgRate

0-7days 12.85 13.00 13.00 13.00 12.90 13.00 12.96

8-15dys 12.90 12.95 12.95 12.95 12.90 12.90 12.93

16-30dys 13.00 12.95 13.00 12.95 12.95 12.95 12.97

31-60dys 13.02 13.05 13.17 13.15 13.05 13.05 13.08

61-90dys 13.22 13.23 13.27 13.26 13.23 13.24 13.24

91-120dys 13.30 13.35 13.34 13.40 13.25 13.35 13.33

121-180dys 13.35 13.45 13.43 13.50 13.30 13.40 13.41

181-270dys 13.50 13.48 13.54 13.70 13.45 13.60 13.55

271-365dys 13.68 13.70 13.70 13.80 13.65 13.75 13.71

2-- years 13.98 14.00 14.08 14.00 13.95 14.00 14.00

3-- years 14.20 14.32 14.25 14.30 14.35 14.34 14.29

4-- years 14.20 14.30 14.26 14.33 14.22 14.25 14.26

5-- years 14.25 14.38 14.28 14.35 14.23 14.36 14.31

6-- years 14.30 14.38 14.32 14.38 14.30 14.30 14.33

7-- years 14.33 14.35 14.38 14.40 14.35 14.42 14.37

8-- years 14.35 14.15 14.18 14.38 14.15 14.10 14.22

9-- years 14.35 14.15 14.14 14.15 14.20 14.13 14.19

10--years 14.40 14.32 14.32 14.33 14.31 14.40 14.35

15--years 14.55 14.60 14.55 14.65 14.55 14.70 14.60

20--years 14.70 14.75 14.75 14.90 14.75 14.85 14.78

Revaluation RatesTreasury Bills / PIBs / FIBs Holding Applicable for January 06, 2011

NEW YORK: The dollar moved higheragainst the euro on Thursday with furthergains likely, bolstered by generally upbeatUS data showing that recovery in theworld's largest economy was well under-way.

US initial jobless claims rose more thanexpected in the latest week, but a declinein the four-week average to a fresh low ofmore than two years indicated that thelabor market is also on the mend.

Investors, however, are now focused onFriday's US non-farm payrolls report,which is expected to show job gains of175,000 in December. Data on Wednesdayfrom ADP showed US private sectoremployment posted a record increase lastmonth of 297,000 jobs.

Traders said should this string of posi-tive US data continue, the euro is likely totake the brunt of the dollar's rally, bringinginto focus the key $1.30 level.

"If you consider the fact that the USrecovery is far better than most majoreconomies, then that kind of spells a lowereuro," said TimO'Sullivan, chiefdealer atForex.com, adivision of GainCapital inB e d m i n s t e r ,New Jersey.

"It is possiblethat the dollar is going to perform wellnow because of fundamentals, and theeuro is bearing the weight of that rightnow."

In early New York trading, the euro wasdown 0.2 per cent at $1.3127. The euroalso slid below its 200-day moving aver-age around $1.3081, suggesting furtherselling pressure.

Forex.com's Tim O'Sullivan said if the

euro falls below $1.30 within the next fewdays, "we could see $1.2575 in the eurowithin a month."

The single currency earlier got a briefboost after Spanish newspaper El Paisreported that China was willing to buyabout 6 billion euros of Spanish govern-ment debt.

It barely reacted, though, to mixed eco-nomic data that showed euro-zone eco-nomic sentiment jumping in Decemberand retail sales falling in November.

While the euro is likely to struggle under

the burden of rising euro-zone governmentdebt issuances in the coming months,investors will keep a close eye on forth-coming US data to assess the economicrecovery's durability.

Crucial to that recovery is the US labormarket, and Friday's US non-farm payrollsreport is expect to show a gain of 175,000jobs. "A number around 200,000 wouldlikely spur profit-taking. A positive sur-prise of 250,000-300,000 is needed to spurthe dollar higher," one London-based trad-er said. Even then, the dollar's gains couldbe limited unless the data changes expec-tations about the US Federal Reserve'splan to keep its bond-buying program inplace through June.

The ICE Futures' dollar index, whichmeasures the greenback's value against abasket of major currencies, was up 0.1 percent at 80.354, a sharp turnaround fromlast week's 78.775 trough. -Reuters

Dollar edges higher as USeconomic outlook improves

SHANGHAI: The yuan closeddown against the dollar onThursday after the People's Bankof China set a weaker mid-point,reflecting a jump in the US dol-lar index in global markets dueto upbeat economic data.

But the mere 27-pip fall inthe PBOC's mid-point, or thelevel from which the yuan mayrise or fall 0.5 per cent eachday, lagged far behind a jumpof 1 per cent in the dollar indexon Wednesday. Dealers saidthat may reflect the centralbank's intention not to let theyuan fall too much.

Spot yuan closed at 6.6265versus the dollar, down fromWednesday's close of 6.6190.It hit a record high of 6.5896last week. Before trade began,the Chinese central bank fixedthe yuan's mid-point versus thedollar at 6.6322, weaker thanWednesday's 6.6295.

"It's natural for the yuan toretreat now after a sharp risearound year-end." said a dealerat a Chinese bank in Shenzhen.

"But the yuan's rise for the fullyear may not change."

"The yuan may track the dol-lar's movement in a small trad-ing range for now," he said.

Dealers said the market hadscaled back forecasts for sharpyuan appreciation in the nearterm after the PBOC's mid-pointfixings were little changed.

But they still said the yuan'sappreciation over the course ofthe year was inevitable asChina wrestles with domesticconcerns such as rising infla-tion and asset bubbles.

The market widely expectsthe yuan may rise 5-6 per centagainst the dollar in 2011 andthat its upward trajectorywould be particularly strong inthe first half.

Benchmark one-year non-deliverable dollar/yuan forwardswere bid at 6.4480, littlechanged from Wednesday's closeof 6.4450. Their implied yuanappreciation in a year's time fellslightly to 2.86 per cent from2.90 per cent. -Reuters

Yuan weakens onweaker mid-point

LONDON: Sterling roseagainst a sluggish euro onThursday as investors continuedto diversify away from the sin-gle currency, while the poundwas able to shrug off knee-jerklosses triggered by weaker-than-expected UK services data.

Large swathes of Britain'sservice sector suffered theirfirst fall in output since April2009 last month due to snowy

weather and weak new orders,the Markit/CIPS services PMIsurvey showed on Thursday.

British GDP probably grewby just 0.4 per cent in the lastthree months of 2010, lowerthan many economists haveforecast and little more thanhalf the 0.7 per cent recordedin the third quarter of the year,survey compilers Markit said.

"There was an initial selloff inthe pound but overall the markethas taken the data with a pinchof salt," said Jane Foley, seniorcurrency strategist at Rabobank.

"Weather-related componentsmake it difficult to read muchinto the data and the market will

be waiting to see if there's abounce in the next month's read-ing," she said.

The euro traded down around0.5 per cent against the pound at84.36 pence, close to its sessionlows of 84.29. It had risen toaround 84.75 when the UK datawas released. The euro wasdown 0.6 per cent against thedollar at $1.3075.

Renewed concerns over the

euro-zone periphery weighedon the single currency, with themarket seeing Spanish debtissuance next week as a keyrisk after Portugal was forcedto pay higher yields in aTreasury bill auction onWednesday.

The December lows were apossible target at 83.50, whilethe technical outlook was weak-ened by Wednesday's movebelow the 200-day movingaverage at 84.85.

The pound pared earlier lossesto trade flat versus the dollar at$1.5515. Traders said Asiandemand had helped to underpinit on the day. -Reuters

Stg gains vs euro,shrugs off UK data

SEOUL: The Philippine pesoand the Malaysia ringgitdipped against the US dollar onThursday with overall Asiancurrencies remaining asinvestors covered dollar-shortpositions ahead of US nonfarmpayroll data.

"USD/Asia should stay sup-ported as the ADP release hasreinforced expectations for astrong NFP although Asiancurrencies will benefit fromstrong US economy over themedium term," said Pin RuTan, emerging markets forexand rates strategist at the RoyalBank of Scotland in Singapore.

The peso fell against the dol-

lar as investors covered dollar-short positions amid the green-back's broad gains.

Currency investors werelargely unfazed by Moody'supgrade of the Philippines' rat-ing outlook.

"It is definitely good for thecurrency. But it could take awhile before we see anupgrade," Tan of the RoyalBank of Scotland said.

Moody's Investor Servicesupgraded the outlook on thecountry's foreign and local-currency bond ratings to posi-tive from stable, a day after thegovernment sold $1.25 billionof global peso bonds.

The ringgit fell as declines inthe euro and the Australian dol-lar spurred dollar short cover-ing and interbank and lever-aged names joined dollar buy-ing.

The baht tracked falls inAsian peers but found a sup-port around 30.30 per dollar,dealers said.

"I think dollar/baht will becapped at 30.30 as investorsalready reduced dollar-shortpositions already," said aBangkok-based dealer.

"Markets will hesitate tomake new positions before theUS job data," the dealer said. -Reuters

Asian currencies

Peso, baht down on USDshort covering before US data

WELLINGTON/SYDNEY: The Australianand New Zealand dollars slipped for a fourthstraight session on Thursday and risked furtherlosses as upbeat US economic data lifted the UScurrency across the board.

The Aussie dollar slipped to a two-week lowof $0.9945, shedding 2.5 per cent since NewYear's eve when it struck a 28-year high at$1.0325. The currency is on its way to test$0.9920 where a break could see a retracementall the way to the Dec 16 trough of around$0.9830. Resistance is seen at $1.0020 and$1.0076, the hourly high on Jan. 5.

This week's slump was triggered by a strongerUS currency which received a big boost onThursday from strong labour data and an upbeatISM services survey.

Lingering worries about widespread floods inthe state of Queensland, which produces twothirds of the world's coking coal, providedanother excuse to take profits on the Aussie.

Analysts have tended to play down the impact ofthe floods on the economy and see little implica-

tion for interest rates with the market still implyinga 50/50 chance of a hike by June. The floods havealso added to upward pressure on coal and iron oreprices, the country's two biggest exports.

"The market may be underestimating theimpact on coal export prices...That should off-set, at least partially, some of the lost volumes,"said Grant Turley, an analyst at ANZ.

"In that sense, I don't think the Aussie shouldfall much further," he said, adding he sees thecurrency stabilising around $0.9950.

The greenback, which gained 1.6 per cent thisweek against a basket of major currencies, alsodollar rose sharply on the yen to 83.24 yen. Thatin turn lifted the Aussie to 83.00 yen, from thisweek's lows just under 82.00.

The NZ dollar slipped to $0.7572, from$0.7599 in early trade and a high of $0.7800 thisweek as investors took profits on positions builtup over December. The Aussie held onto earlygains, sitting around NZ$1.3165, but the pairneeds to clear NZ$1.3340 to build a strongerbase even as the kiwi loses steam. -Reuters

Aussie, Kiwi dollars fall onUSD; data mixed blessing

Swiss franc

extends lossesZURICH: The Swiss franceased further on Thursday asmarkets awaited Swiss con-sumer price data to assesswhether the central bank wouldhave to fight renewed risks ofdeflation or the build up ofinflation pressures.

Analysts at Commerzbanksaid speculation about an earlyinterest rate hike could resur-face and lend some support tothe franc should Swiss con-sumer price data for Decembershow a surprise rise.

"After the upside surprisewith euro-zone inflation fig-ures, it seems likely that Swissprices also rose more than themarket expects," the analystssaid in a note to clients.

In a Reuters poll, analystsforecast a annual inflation rateof 0.4 per cent, up from 0.2 percent in November. The francwas 0.1 per cent down againstthe euro compared to the NewYork close, trading at 1.2717per euro at 0724 GMT, havingdropped around 2 per cent overthe last two sessions.

The franc was 0.1 per centweaker against the dollar at0.9664 per dollar, having lostaround 3.5 per cent in the lasttwo days. The Swiss NationalBank intervened massively in thefirst half of 2010 to fight defla-tionary pressures from a strongfranc but dropped interventionsin June, saying deflation riskshad disappeared. -Reuters

Peso down 0.2pc; muted reactions to Moody's move

Today’s US payrolls report to set dollar's direction

Page 4: The Financial Daily-Epaper-07-01-2011

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

only. Summary and Analysis are not recommendation to buy or sell. This

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

ent in securities trading. The facts, information, data, indicators and charts

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

accuracy and completeness cannot be guaranteed. The Financial Daily

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

use of these reports and recommendations.

TheDebt

weightInability to boost tax collection or to contain

non-developmental expenditures is forcing thegovernment to borrow more from the StateBank of Pakistan as well as commercial banks.Added to this is the rising debt servicing quan-tum, mainly because of International MonetaryFund's (IMF) stand by arrangement (SBA) pro-gramme. Release of the last two tranches ofSBA has been deferred due to Pakistan's failurein imposing RGST. The recent effort to increasePOL prices has been frustrated as the govern-ment was forced to withdraw it which it willy-nilly did on Thursday under pressure of allies.Now return of MQM on treasury benches isquite likely which would ease some of the pres-sure being mounted for an in-house change.

The government attributes its substantial bor-rowing during the current financial year to therehabilitation of flood affectees and delay inreceipts of amounts under coalition supportfund. The delay in the release of funds commit-ted by various countries for the rehabilitationwork has forced the government to resort tolocal borrowing. It is evident from the fact thattill November-end government borrowingreached a phenomenal Rs301 billion as com-pared to a paltry Rs58 billion at the end ofNovember 2009. Similarly, total outstandingdebt at the end of November 2010 exceededRs5.1 trillion as compared to Rs4.65 trillionoutstanding at end of June 2010.

Over the months many efforts have been madeto enhance revenue but none really materialised,including the decision to impose RGST. Thegovernment in fact got a humiliating defeat dueto failure in imposing RGST at the hands ofvehement opposition as well as two of the coali-tion partners, JUI-F and MQM. Representativesfrom urban areas are insisting on imposition taxon agriculture income but probability of such amove is very low.

Government in an attempt to curtail budgetdeficit is withdrawing subsidies paid on variousproducts, particularly on energy products, fer-tilisers, and food items. Resistence by opposi-tion parties and even coalition partners mayresult in withdrawal of the recent hike in theprices of POL products but the question remainshow will budget deficit be contained?

Though, a difficult decision, the governmentwill have to opt for the austerity to containexpenditures. Further cut in PSDP is likely toannoy the vote bank and pave way for the un-ceremonial defeat of both the political parties,PPP and PML-N. Unfortunately both the partieshave not been able to fulfill many of the prom-ises made during the election campaign.

In the aftermath of Salman Taseer's assassina-tion, Pakistan faces a highly unpredictableresponse from the US, also enjoying influenceover the IMF. Either of the two outcomes can'tbe ruled out, enhanced support for Pakistan tocurb growing militancy in the country or with-drawal of support. Whatever may be the deci-sion it would only add to the woes of Pakistan.

4Friday, January 7, 2011

Publisher & Editor-in-Chief: Amir A. Ashary

Editor: Shakil H. Jafri

Executive Editor: Manzar Naqvi

Honorary Advisory Board

Haseeb Khan, FCA

Asim Abbas Ashary, CPA

Akhtar M. Zaidi, FCA

Dr. A. Hadi Shahid, FCA

Muhammad Arif

S. Muneer Hussain Rizvi

Khurram Shehzad, CFA

Prof. Zakaria Sajid (KU)

Zahid Bukhari SVP HBL (retd)

Ismat Sabir

Head office

111-C, Jami Commercial Street 11, Phase VII, DHA KarachiTelephone: 92-21-35311893-6 Fax: 92-21-35388428

URL: www.thefinancialdaily.comEmail Address: [email protected]

Lahore office

24- Peshawar Block, Fortress Stadium, Lahore

Telephone: 92-42-6675595 Fax: 92-42-6664349

Email Address: [email protected]

The Financial Daily InternationalVol 4, Issue 146

Shabbir Kazmi

It goes without saying thatPakistan suffers from bad per-ception, mainly because the

local and international media hasbeen printing/airing bad newsrather than highlighting theachievements made. At present it isbeing said that the country suffersdue to bad governance, mismanage-ment and corruption but Pakistan isnot the only country suffering fromthese contentious problems. Similarstories have also hit the headlinesin India. Before, forming any opin-ion it is necessary to look at theachievements made and also thefailures. This dispassionate analy-sis can help in evolving futurestrategy to attract fresh investmentfor boosting GDP growth rate.

Despite all the odds Pakistan hasbeen successful in boosting percapita incomes. This is remarkablekeeping in view the failure to con-tain population growth rate. Theincidence of poverty has also beenreduced significantly although thenumber of absolute poor remainsastoundingly high.

Food production has not onlykept pace with the rise in popula-tion but often supply exceedsdemand. Leaving aside annualfluctuations due to weather condi-tions the country has remainednear self-sufficient in food.Pakistan has been exporting rice inlarge quantities and also achievedexportable surplus wheat. Foodself-sufficiency has been accompa-nied by improved nutritional sta-tus. Daily caloric and proteinintake per capita has shown con-stant improvement but malnourish-ment among children is still high.

The cracks in the dualistic natureof the economy are evident fromsome well developed sectors andothers still backward. A buoyantmiddle class has emerged. The useof better inputs and mechanizationof agriculture has contributed inboosting share of the sector in total

GDP but policies have not alwaysbeen consistent or supportive.

The relatively inward-lookingeconomic policies and high protec-tion to domestic industries has notallowed integration of Pakistaninto the world economy. Though,the situation has changed signifi-cantly over the last two decades themind-set of the politicians and thebureaucrats has not changed. A rel-atively inefficient private sectorhas thrived more on contacts,

bribes, lobbying, tax evasion andrent-seeking rather than attainingcompetitive and comparativeadvantages. The situation can bechanged by promoting competi-tion, reducing tariff and non-tariffbarriers and removing constraintsat entrylevel forn e w c o m -ers.

In termsof fiscalm a n a g e -ment, therecord hasbeen lessthan stel-lar. Higherf i s c a ldeficit as apercentage of GDP has persistedfor long and affected private capi-tal formation. Defense expendi-tures and debt servicing still eat upa large chunk of revenues leaving alittle to be spent on maintenanceand expansion of infrastructure,basic social services and otheressential services.

The state of financial sector indi-cates certain weaknesses.Nationalization of commercialbanks in seventies, the neglect ofcredit quality in allocation deci-sions, lack of competition andinadequate prudential regulationsand supervision have kept the sys-tem under severe pressure and con-tributed to non-performing assets

of the banks. The financial inter-mediation role in mobilizing andefficiently allocating domestic sav-ings has been often compromised.

One of the factors responsible forlower tax to GDP ratio has been thecorrupt and inefficient taxationcollection regime. While the poli-cies have been driven by selectedelites, masses have been forced topay taxes through their nose,thanks to indirect taxation system.Elites have also enjoyed tax

exemptions, worst being incomefrom agriculture tax exempt. Ontop of this non-disclosure and taxevasion have proliferated due tointroduction of 'money whiteningschemes' with regular intervals.

According to some experts perc a p i t ai n c o m er a n g e sf r o m1000 to2 5 , 0 0 0d o l l a r sand incase ofs o m ef e u d a ll o r d so f t e ntouches

50,000 dollars. This is partlybecause of certain groups enjoyingtax exemptions for ages. Be it cap-ital gains made in the equities mar-kets or all sorts of income clubbedunder agriculture income has creat-ed 'blue eyed kids'. Enjoying amplewealth these groups also controllegislative directly or indirectly.

The numbers often create an illu-sion that 200 million people areleading a comfortable life.However, breach between rich andpoor is widening with the passageof time, mainly because of distort-ed policies, particularly the taxa-tion system in force in the country.Some of the experts say that thegovernment hardly offers any

incentive for investment, particu-larly, for the creation of productivefacilities.

Though, the successive govern-ments have been holding'Investment Conferences' aroundthe world and have been spendingmillions of dollars the response hasbeen disappointing. The govern-ment knows very well that persist-ent load shedding of electricity andgas is the biggest hurdle in estab-lishing new industrial units but lit-tle is being done to ensure uninter-rupted supply at affordable cost.Though, some rental power plantshave been granted permission, thewhole process has run into contro-versy. The bottom line is thatpower to be purchased from theseplants is unaffordable and there-fore, does not provide a sustainablesolution.

A factor really affecting invest-ment is growing militancy andfragile law and order situation inthe country. Some of the expertshave been saying openly that'fighting the US war' for nearlythree decades is the reason forgrowing militancy in the country.Funding of various extremistsgroups by some of the neighboringcountries, to achieve their ownulterior motives often results inarmed clashed with law enforcingagencies and even army. There is agrowing perception amongPakistanis that the sole aim of thegroups receiving funds from out-side is to destabilize the country.Attacks on the places of worshipand educational institutions areaimed at creating anarchy in thecountry.

The imperatives of globalizationand integration with the worldeconomy dictate that the countriesthat are not agile and do not seizethe opportunities at the right timesare likely to be the looser. Theencouraging factor is that the eco-nomic policy stance of Pakistan isbased on liberalization of the econ-omy. Pakistan had made a headstart and let it not be distracted bythose having vested interests.Pakistan's destiny depends uponthe hard work, discipline and inter-nal cohesion of its people and thevision of its leaders. Let our futuregenerations not blame the leadersfor failing to create a legacy ofprosperity and hope for them.

Reality not asBleak as Perceived

Republicans took power inthe House ofRepresentatives on

Wednesday with promises of aleaner, more accountable govern-ment but softened a pledge of deepand immediate spending cuts thathelped them win November's elec-tion.

The Republican takeover sets uppotentially fierce battles in thecoming months with PresidentBarack Obama and his fellowDemocrats on spending, debt andhealthcare.

Republican John Boehner, from aworking class Ohio family of 12children, was elected House speak-er in the new Congress and warnedof "hard work and tough decisions"on the economy as the UnitedStates recovers slowly from itsworst recession since the 1930s.

"No longer can we fall short. Nolonger can we kick the can downthe road. The people voted to endbusiness as usual, and today webegin carrying out their instruc-tions," Boehner said after takingover from Democrat Nancy Pelosi.

Despite the tough rhetoric,Republicans signaled they couldwork with Obama to avert a debtcrisis in the coming months.

Republican control of the Houseand a larger minority in the Senateushers in a new era of divided gov-ernment after election gainsspurred in part by high unemploy-ment and the large $1.3 trilliondeficit.

But Obama's Democrats still con-trol the Senate and can block theRepublican agenda, which includesa plan to repeal the president'slandmark healthcare reform and aroll back a crackdown on WallStreet.

The incoming House budgetchief, Republican Paul Ryan, told

NBC's "Today" program aRepublican campaign promise tocut $100 billion in spending thisyear had been "compromised" bythe momentum of spending alreadyunder way.

Republicans, under pressure fromthe fiscally conservative Tea Party

movement that supported many ofthe party's candidates, promised toreduce federal spending to 2008levels, which would trim $100 bil-lion from the budget Obama pro-posed last year.

But aides said the actual cuts arelikely to be less than half thatamount because the fiscal year willbe half over by the timeRepublicans get a chance to affect

spending in March.A deal on taxes in December

showed Obama and the oppositioncan work together but there aremany thorny issues ahead.

DEBT CRISISBond markets fear political grid-

lock could prevent Congress fromraising the level of debt the countrycan take on, potentially making theUnited States default on its debt.

Bill Gross, manager of theworld's largest bond fund, warnedthat "mindless" US deficit spend-ing could result in higher inflation,a weaker dollar and the eventualloss of America's top-notch creditrating.

"The problem is that politicians

and citizens alike have no clearvision of the costs of a seeminglyperpetual trillion dollar annualdeficit," said Gross, who overseesthe $256 billion PIMCO TotalReturn Fund.

"As long as the stock market pul-sates upward and job growth con-tinues, there is an abiding convic-tion that all is well and that 'oldnormal' norms have returned. Not

likely."Ryan, the incoming House budg-

et chief, said he will seek spendingconcessions from the Obamaadministration in exchange forany increase in the national debtceiling.

"I'm not interested in raising thedebt ceiling on the hope that apromise will be fulfilled at a latertime," Ryan told MSNBC. "I'm

only interested in raising the debtceiling if we get concessions onspending, on real controls to getour fiscal situation turned aroundand headed in the right direction."

Ryan's comments suggestedRepublicans are willing to workwith Obama on raising the debtlevel but fights could still breakout before the issue comes to ahead in March or April.

At the White House, spokesmanRobert Gibbs urged Republicans toapproach the debt limit vote "in away that's responsible and in a waythat doesn't threaten the full faithand credit of our government.

The No. 2 House Republican,Eric Cantor, said the party was notbacking down from its pledge tocut spending but had to wrestlewith a temporary resolution to fundthe government that sets spendingat 2010 levels until March 4.

"We've got this sort of gap periodthat we're operating in now to takecare of the next fiscal year," he toldthe National Journal. "So it is justsort of a formulaic challenge."

The two parties are headed fortheir first big clash next week,when Republican House leadersplan a vote on repealing Obama'shealthcare overhaul. The effortlooks doomed in the Democratic-led Senate but the vote could setthe tone for a combative first fewmonths.

Pelosi told the opening session ofthe new Congress that "our mostimportant job is to fight forAmerican jobs."

Obama will offer his own visionin the coming weeks when hemakes a State of the Union speechto Congress and unveils a newbudget. He could propose someform of tax reform as a way toreach a major deal withRepublicans.-Reuters

Republicans’ Cut-softening

The relatively inward-lookingeconomic policies and high

protection to domestic industries hasnot allowed integration of Pakistan

into the world economy“

Though, the successiveGoP have been holding

'Investment Conferences'around the world and havebeen spending millions of

dollars the response hasbeen disappointing

Despite the tough rhetoric,Republicans signaled they

could work with Obama to avert adebt crisis in the coming months.“

Bond markets fear political gridlockcould prevent Congress from raisingthe level of debt the country can take

on, potentially making the United Statesdefault on its debt

Page 5: The Financial Daily-Epaper-07-01-2011

FERTILISER000 tonnesUrea Offtake (Jan to Nov 10) 5,463Urea Offtake (Nov 10) 845Urea Price (Rs/50 kg) 870DAP Offtake (Jan to Nov 09) 121DAP Offtake (Nov 10) 152DAP Price (Rs/50 kg) 3,137

AUTOMOBILE ASSEMBLERPAK SUZUKI MOTORUnitsProduction (July 10 to Nov 10) 33,929

Sales (July 10 to Nov 10) 32,092

Production (Nov 10) 7,087

Sales (Nov 10) 6,813

INDUS MOTOR COProduction (July 10 to Nov 10) 20,987

Sales (July 10 to Nov 10) 20,375

Production (Nov 10) 3,974

Sales (Nov 10) 3,753

HONDA ATLAS CARProduction (July 10 to Nov 10)6,626

Sales (July 10 to Nov 10) 6,247

Production (Nov 10) 1,145

Sales (Nov 10) 1,075

DEWAN FAROOQ MOTORSProduction (July 10 to Nov 10) 186

Sales (July 10 to Nov 10) 70

Production (Nov 10) 0

Sales (Nov 10) 0

BANKING SECTORScheduled bank (Rs in mn)Deposit (December 3,10) 4,824,464

Advances (December 3,10) 3,050,639

Investments (December 3,10) 1,916,917

Spread (October 10) 7.49%

OIL MARKETING CO(000 tons)MS (Jul 10 to Nov 10) 932

MS (Nov 10) 186

Kerosene (Jul 10 to Nov 10) 66

Kerosene (Nov 10) 12

JP (Jul 10 to Nov 10) 589

JP (Nov 10) 124

HSD (Jul 10 to Nov 10) 2,792

HSD (Nov 10) 612

LDO (Jul 10 to Nov 10)) 26

LDO (Nov 10) 4

Fuel Oil (Jul 10 to Nov 10) 3,641

Fuel Oil (Nov 10) 572

Others (Jul 10 to Nov 10) 3

Others (Nov 10) 1

PRICES (Ex-Refinery) RsMS (1 Dec 10) 45.15

MS (1 Nov 10) 44.53

MS % Chg 1.39%

Kerosene (1 Dec 10) 52.04

Kerosene (1 Nov 10) 51.25

Kerosene % Chg 1.54%

JP-1 (1 Dec 10) 52.27

JP-1 (1 Nov 10) 51.48

JP-1 % Chg 1.53%

HSD (1 Dec 10) 55.20

HSD (1 Nov 10) 54.24

HSD % Chg 1.77%

LDO (1 Dec 10) 50.52

LDO (1 Nov 10) 49.51

LDO % Chg 2.04%

Fuel Oil (1 Dec 10) 43,019

Fuel Oil (1 Nov 10) 42,046

Sector Updates

Symbol Close Vol (mn)LOTPTA 14.71 12.45 DGKC 30.18 12.38 SILK 2.77 7.26 FFBL 37.21 6.14 LPCL 3.31 5.97

Symbol Close ChangeWYETH 1,096.00 49.99

COLG 963.60 28.62

POL 318.55 11.61

FZTM 410.83 11.33

EXIDE 206.32 9.82

Symbol Close ChangeRMPL 2,032.01 -93.38IDYM 267.43 -14.07PECO 228.00 -12BATA 646.23 -10.43NESTLE 2,440.00 -6.01

Plus 237Minus 130Unchanged 27

Top 5 Volume Leaders

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KSE-100 Index

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Active Issues

Friday, January 7, 2011 5

Dhiyan

The short-term outlook of the market is still bullish due to upcoming corporate

result season and hopes from the new KSE BoD of launching Margin Trading

System (MTS) soon. Therefore index can touch 12,400-12,500 levels in the com-

ing days. But the political instability would be a cause of concern for the market.

I advise trading at current levels in oil, gas and banking stocks where my top

picks are POL, APL, MCB and ABL. However, investments should be avoided

where investors are advised to wait for dips. Market would remain bullish today.

Faisal Dhedhi, Deputy Head of Sales Al-Habib Capital Markets

Mohammad Imran, VP Arif Habib LimitedBetter than expected corporate results in oil, fertiliser, textile, and bank-

ing sectors are likely to drive the market up in the positive zone.Continuous foreign inflow will also support the positive momentum.Index would be moving between 12,000 - 12,300 points this week.However, increase in discount rate, uncertain political situation, and fiscalslippages may act as negative triggers. Investors are advised to accumulatefundamentally strong scrips in oil, fertiliser and banking sectors. The mar-ket would be range bound today and we may see some profit-taking.

A GREEN DAY ON TIGHT LEASH

Opening 12,140.84

Closing 12,323.47

Change 182.63

% Change 1.50

Turnover (mn) 144.29

Opening 3,746.99

Closing 3,763.99

Change 17.00

% Change 0.45

Turnover (mn) 6.70

Opening 3,054.38

Closing 3,132.96

Change 78.58

% Change 2.57

Turnover (mn) 0.25

Nawaz Ali

KARACHI: Heavy bullishactivities spurred by hopes ofbetter December-ending corpo-rate results took Karachi StockExchange (KSE) as high as12,300 points level on Thursday.

The benchmark KSE 100-Index jumped by 182 points -1.5 per cent-- to close at 12,323points -its highest since June27, 2008.

KSE 30-Index jumped by 171points -1.46 per cent-- to closeat 11,888 points and KSE All-Share Index rose by 122 points-1.45 per cent-- to close at8,551points.

"Bullish sentiments continuedon strong valuations in scripsacross the board ahead of earn-ings announcement session",said Ahsan Mehanti, DirectorArif Habib Investments.

Foreign investors remainedbullish in oil & gas, fertilisersectors scrips on easing politi-

cal crises & global economicrecovery, he added

Trading activities started with27 plus points, index thenremained in the grip of bullsthroughout the day graduallypiling up the green numbers asforeign and local institutionalinvestors took positions mainlyin oil exploration, fertiliser, andtextile stocks in anticipation ofsome better corporate resultannouncements. Further,improvement in political situa-tion and hopes of early launchof Margin Trading System(MTS) too revived investorconfidence. Thusly, index atabout 2:17 PST touched anintra-day high of 12,376 points(+ve 235 points).

According to NCCPL dataoffshore investors did a net-buying of $4.34 million onThursday. Local companies andbanks did a net-buying of $1.41and $1.25 million respectivelywhile individual investors and

mutual funds did a net-sellingof $4.22 and $1.83 millionrespectively.

Oil stocks remained in thelimelight as the leading stocksi.e. OGDC, POL, and PPLtogether contributed around138 points to the benchmarkindex gains. Experts said thatthere were some rumors regard-ing strong payouts and discov-ery in Tal Block that invitedinvestors' interest in the oilstocks particularly in PakistanOil Fields which ended atRs11.61 points.

Though index remained inthe positive zone throughoutthe session but some profit-tak-ing was witnessed at higherlevels mainly by the localinvestors which reduced gains.

Investor participation howev-er remained on the lower sideas 144.2 million shares tradedduring the day which is 24 mil-lion less as compared to a

See # 15 Page 11

Result-hopes getKSE gains rolling

HONG KONG/SHANGHAI:A weak China market, damp-ened by shares of large cap lifeinsurers and caution ahead ofUS payrolls data, weighed onHong Kong's benchmark stockindex which only just managedto hold on to gains for a seventhsuccessive day.

The Hang Seng Index rose0.1 per cent on Thursday sup-ported by real estate developerswhile banks were broadlyweaker on reports that China'scentral bank would not set aclear loan target for the year.

Shanghai's key stock indexfell 0.5 per cent to 2,831.9,stuck below the 250-day mov-ing average that has cappedgains for the past six weeks.

"But the market has nowentered earnings season andcorporate profits last year mayprove to be better than expect-ed," said a senior trader at amajor Chinese brokerage inShanghai. "So the index may be

able to break through the levelsoon."

Ping An Insurance (Group) ofChina Ltd fell 4.1 per cent, thebiggest drag on the ShanghaiComposite, on rumours that thelife insurer was planning toraise as much as 100 billionyuan ($15 billion) through ashare sale. Ping An shares inHong Kong fell 0.7 per cent.

China's key stock indexclosed down 0.5 per cent, ledby Ping An Insurance (Group)of China Ltd , while the marketconsolidated ahead of a crucialtechnical level.

Ping An shares in HongKong, which trade at a slightdiscount to their historical for-ward price-to-earnings multi-ples, were a top performeramong insurers in 2010, post-ing a 28 per cent gain, far out-performing large rival ChinaLife's 17 per cent drop and theHang Seng index's 5.3 per centrise.

"Very speculative to come upwith a number like this (100billion). How much Ping Anneeds depends on how theywant to eventually structureShenzhen Development Bankand it's way too early to say,"said a trader at Daiwa Capitalin Hong Kong.

Given that smaller rival PICCProperty & Casualty has farmore need to raise capital andstrengthen its balance sheet, thetrader at Daiwa said clientscould look for taking a shortposition and bet on furtherdeclines.

PICC shares closed down 1.6per cent.

Property developers in HongKong extended gains fromWednesday on good volume asinvestors were drawn by attrac-tive valuations and on expecta-tions that real estate priceswould stay high as capitalflows into Hong Kong remainsteady.-Reuters

HK stocks gain;Ping An hits China

MUMBAI: Indian markets fellfor the third day on Thursday,shedding 0.6 per cent after asharp rise in food pricesheightened concerns the cen-tral bank may tighten monetarypolicy more harshly thanexpected.

Financial stocks were amongthe big losers as higher interestrates could douse loan demandand squeeze the margins ofbanks.

The food price index rose18.32 per cent in the 12 monthsto Dec. 25, the highest in morethan a year, government datashowed on Thursday. The fuelprice index climbed 11.63 percent.

"This number reinforces thebase case scenario of a 50 basispoint rate hike in January," saidHitendra Dave, head of globalmarkets at HSBC India.

"One has to be prepared nowfor a much larger frontloadedrate hike series than what onewas expecting say a monthago."

The Reserve Bank of India isscheduled to review policy onJan. 25, and a Reuters poll onWednesday forecast at least a25 basis point increase in keyrates.

Leading lenders State Bankof India and ICICI Bankdropped 2.7 per cent and 1.6per cent respectively. Also,

mortgage firm HousingDevelopment Finance Corpshed 0.2 per cent.

India needs to speed up itsreturn to pre-crisis monetaryand fiscal policies to help bringdown elevated inflation, theInternational Monetary Fundsaid on Wednesday.

The 30-share BSE index fell0.57 per cent, or 116.36 points,to 20,184.74, its lowest close ina week. Two-thirds of its com-ponents ended lower.

In the broader market, vol-ume was low at 290 millionshares on the BSE, with losersbeating gainers in the ratio of1.9:1.

Oil Natural Gas Corp'sslipped 3.2 per cent afterChairman R.S. Sharma saidprofitability in the Decemberquarter may be hit due to high-er subsidy payout to refinersand higher global crude oilprices.

However, export-focusedoutsourcers Tata ConsultancyServices and InfosysTechnologies rose to recordhighs on an optimistic outlookfor the year ahead.

Analysts at BNP Paribas saidin a note there was strong near-term demand visibility forIndian IT companies.

TCS and Infosys closed 1.4per cent and 0.2 per cent higherrespectively.-Reuters

Indian shares fallon inflation woes

TOKYO: Japan's Nikkeiclimbed to an eight-monthhigh on Thursday after thedollar jumped against theyen following robust USprivate-sector jobs data,while Resona surged 14per cent on speculation itwould soon launch aplanned share sale.

Shares of blue-chipexporters rose, withToyota Motor Corp gain-ing 2.6 per cent andHitachi Ltd rising 2 percent, leading the Nikkei'sadvance after the green-back posted its best one-day gain in more thanthree months against theyen on Wednesday.

Trading volume pickedup sharply as moreinvestors tap into riskierassets on hopes of eco-nomic recovery. Around2.4 billion shares changedhands on the Tokyo StockExchange's first section,well above last week'saverage of around 1.3 bil-lion.

Advancing issues out-paced declining ones by1,250 to 302.

"If the weakening yentrend continues, there willlikely be continuous buy-ing in Japan stocks in themidterm," said HidenoriSuezawa, chief strategistat Nikko CordialSecurities.

The benchmark Nikkeigained 1.4 per cent, or148.99 points, to10,529.76. That was the

highest level since its May14 peak of 10,551.69,which now becomes itsnext target.

The broader Topix indexgained 1.4 per cent to924.51.

The Nikkei breached thepsychologically importantbarrier of 10,500 yen afterthe ADP EmployerServices report showed USprivate employers added297,000 jobs in December,the largest ever gain,adding to evidence the USeconomy is on a recoverypath.

The jobs figures cometwo days ahead of the USgovernment's closelywatched and more compre-hensive payrolls report forDecember, promptingeconomists to raise fore-casts for that data.

"Markets will now waitfor US payrolls on Fridayfor confirmation of thestrong trend. But investorswill then focus more onhow the US data willimpact the dollar/yenrate," said HiroakiOsakabe, a fund managerat Chibagin AssetManagement.

"Investors have alreadytaken in stride positivenews from the US and willnow look for new tradingfactors. After Friday theywill immediately shifttheir focus to the perform-ance of US companies asthe earnings season startsnext week."-Reuters

Nikkei at 8-mth top as

US data cheers

US dataweighs

on FTSE LONDON: Uncertainty on theoutlook for the US economyafter weak retail sales and jobsdata dented commodity prices,hitting miners and energystocks, pushed Britain's topshare index lower by the closeon Thursday.

However gains in retailerMarks & Spencer, BritishAirways and technology firmARM Holdings ensured losseswere relatively muted. The FTSE100 ended 24.35 points or 0.4 percent lower at 6,019.51. Howeverthe blue chip is still up 2 per centafter the first three trading ses-sions of 2011 following a 6.7 percent gain in December.

Energy stocks were thebiggest drag on the index ascrude, which hit a 27-monthhigh of $92.58 on Tuesday,slipped to below $89 per barrel.BP fell 0.5 per cent.

Metals were also hit on USjobs data that showed initialweekly jobless claims for unem-ployment benefit had risen to409,000 last week, outpacing theconsensus forecast for 400,000.Miners fell 0.7 per cent.

"The jobless data was the cat-alyst (for the fall), it's the firstdata of the year to come out andinvestors are thinking it couldbe setting a tone for the year,"said Joe Rundle, head of trad-ing at ETX Capital.

See # 14 Page 11

US stocks late-morning

Dow, S&Pgo down onshaky retail,energy sharesNEW YORK: The Dow andS&P 500 dipped on Thursdayas disappointing sales from topretailers dented hopes about theholiday shopping season andenergy shares fell with oilprices.

Telecommunications shares,including AT&T and Verizon,were among top drags on theDow.

Several big US retailersmissed estimates for Decembersales after a post-Christmasblizzard that slowed a two-month shopping spree, drivingdown consumer shares.

The disappointing retail salescontrasted with Wednesday'seconomic data showing a muchstronger-than-expected gain inprivate-sector jobs forDecember, which buoyed opti-mism about Friday's unemploy-ment report from the LaborDepartment.

The retail weakness "wasboth surprising and disturbing,but the fact that it was so broad-ly based makes me think it hadmore to do with weather thanfundamentals," said WalterTodd, who helps manage about$900 million as chief invest-ment officer at GreenwoodCapital Associates inGreenwood, South Carolina.

Analysts noted recent marketgains have put the S&P 500 inoverbought territory, suggest-ing a temporary pullback couldbe in store in the near term. TheS&P 500 is up about 8 per centsince the start of December.

"It leaves the market vulnera-ble to profit-taking if there's anegative reaction to the jobsdata," said Chris Burba, short-term market technician atStandard & Poor's in New York.

The Dow Jones industrialaverage was down 36.06points, or 0.31 per cent, at11,686.83. The Standard &Poor's 500 Index was down 0.3per cent at 1272.59. TheNasdaq Composite Index was

See # 13 Page 11

Mostly higher; Indonesia retreats from record high

South East Asian stocks

European shares close off 28-mth high; insurers up

ANNOUNCEMENTS

Company Period Div/Bon/Right PAT (Rs in mn) EPS(Rs)

Dewan Sugar Yearly - -83.478 -2.29

Crescent Sugar Yearly - -55.99 -2.62

Noon Sugar Mills Yearly - -200.582 -14.9

Page 6: The Financial Daily-Epaper-07-01-2011

Friday, January 7, 20116

Volume 144,294,030

Value 7,905,932,355

Trades 79,705

Advanced 237

Declined 130

Unchanged 27

Total 394

Current 8,551.20

High 8,587.42

Low 8,428.86

Change h122.34

Current 12,323.47

High 12,380.01

Low 12,140.84

Change h182.63

Current 11,888.43

High 11,914.27

Low 11,713.80

Change h171.15

Market KSE 100 Index All Share Index KSE 30 Index

Current 19,707.82

High 19,749.34

Low 19,399.95

Change h307.87

KMI 30 IndexSymbolsAlert ! Unusual Movements

Technical AnalysisFundamental Highlights

As on Jun 30, 2010

Kohinoor Textile Mills Limited

KTML closed up 0.32 at 5.67. Volume was 1,578 per cent above aver-

age (trending) and Bollinger Bands were 15 per cent narrower than nor-

mal. The company's profit after taxation stood at Rs61.882 million

which translates into an Earning Per Share of Rs0.35 for the 1st quar-

ter of current fiscal year (1QFY11).

KTML is currently 7.2 per cent below its 200-day moving average and

is displaying a downward trend. Volatility is low as compared to the

average volatility over the last 10 trading sessions. Volume indicators

reflect moderate flows of volume into KTML (mildly bullish). Trend fore-

casting oscillators are currently bearish on KTML.

RSI (14-day) 57.30 Total Assets (Rs in mn) 17,057.30

MA (10-day) 5.24 Total Equity (Rs in mn) 3,361.27

MA (100-day) 5.41 Revenue (Rs in mn) 10,693.34

MA (200-day) 6.11 Interest Expense 1,072.77

1st Support 5.35 Profit after Taxation 277.86

2nd Support 5.00 EPS 10 (Rs) 1.909

1st Resistance 6.00 Book value / share (Rs) 23.10

2nd Resistance 6.30 PE 11 E (x) 4.05

Pivot 5.65 PBV (x) 0.25

Technical AnalysisFundamental Highlights

As on Dec 31, 2009

CENI closed up 0.35 at 11.68. Volume was 1,128 per cent above aver-

age (trending) and Bollinger Bands were 34 per cent narrower than nor-

mal. The company's profit after taxation stood at Rs54.776 million which

translates into an Earning Per Share of Rs1.20 for the nine months of

current calendar year (9MCY10).

CENI is currently 4.3 per cent above 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 indi-

cators reflect moderate flows of volume into CENI (mildly bullish). Trend

forecasting oscillators are currently bullish on CENI.

RSI (14-day) 59.75 Total Assets (Rs in mn) 1,151.84

MA (10-day) 11.13 Total Equity (Rs in mn) 852.00

MA (100-day) 10.81 Revenue (Rs in mn) 206.65

MA (200-day) 11.10 Interest Expense 0.00

1st Support 11.41 Loss after Taxation (69.96)

2nd Support 11.11 EPS 09 (Rs) (1.53)

1st Resistance 12.00 Book value / share (Rs) 18.63

2nd Resistance 12.29 PE 10 E (x) 7.30

Pivot 11.70 PBV (x) 0.63

Century Insurance Company Limited

Technical AnalysisFundamental Highlights

As on Jun 30, 2009

GHNI closed up 0.79 at 12.29. Volume was 189 per cent above average(trending) and Bollinger Bands were 59 per cent narrower than normal.The company's profit after taxation stood at Rs5.766 million which trans-lates into an Earning Per Share of Rs0.27 for the 1st quarter of current fis-cal year (1QFY11).GHNI is currently 13.9 per cent below its 200-day moving average and isdisplaying an upward trend. Volatility is extremely high when compared tothe average volatility over the last 10 trading sessions. Volume indicatorsreflect very strong flows of volume into GHNI (bullish). Trend forecastingoscillators are currently bullish on GHNI.

RSI (14-day) 60.19 Total Assets (Rs in mn) 1,923.44

MA (10-day) 11.55 Total Equity (Rs in mn) 83.73

MA (100-day) 13.44 Revenue (Rs in mn) 1,313.81

MA (200-day) 14.27 Interest Expense 83.51

1st Support 11.70 Loss after Taxation (137.49)

2nd Support 11.16 EPS 09 (Rs) (6.453)

1st Resistance 12.59 Book value / share (Rs) 3.93

2nd Resistance 12.94 PE 10 E (x) 11.38

Pivot 12.05 PBV (x) 3.13

Ghandhara Industries Limited

Technical AnalysisFundamental Highlights

As on Dec 31, 2009

LPCL closed up 0.11 at 3.31. Volume was 310 per cent above average(trending) and Bollinger Bands were 24 per cent wider than normal. Thecompany's loss after taxation stood at Rs1.045 billion which translates intoa Loss Per Share of Rs0.80 for the nine months of current calendar year(9MCY10).LPCL is currently 2.1 per cent above its 200-day moving average and isdisplaying a downward trend. Volatility is high as compared to the averagevolatility over the last 10 trading sessions. Volume indicators reflect verystrong flows of volume into LPCL (bullish). Trend forecasting oscillatorsare currently bearish on LPCL.

RSI (14-day) 52.22 Total Assets (Rs in mn) 19,704.24

MA (10-day) 3.26 Total Equity (Rs in mn) 9,763.73

MA (100-day) 3.03 Revenue (Rs in mn) 8,129.96

MA (200-day) 3.24 Interest Expense 1,230.81

1st Support 3.23 Loss after Taxation (1,278.96)

2nd Support 3.10 EPS 09 (Rs) (0.974)

1st Resistance 3.53 Book value / share (Rs) 7.44

2nd Resistance 3.70 PE 10 E (x) -

Pivot 3.40 PBV (x) 0.44

Lafarge Pakistan Cement Ltd

OIL AND GAS

Performance of SR Oil and Gas Index

Open High Low Close Change % Change

1,572.55 1,636.85 1,570.27 1,616.46 43.91 2.79

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

14,476,377 - - 65,194.15 mn 1,255,380.15 mn 1,616.46

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

11.52 3.75 32.54 55.94 4.86 1,535.69

Attock Petroleum 691 5.97 340.90 346.50 341.00 344.47 3.57 321805 374.20 287.99 300 20B - -

Attock Refinery 853 7.31 128.83 131.88 127.70 130.36 1.53 4087823 137.20 80.50 - - - -

BYCO Petroleum 3921 - 11.16 11.33 11.12 11.24 0.08 564980 12.49 10.10 - - - -

Mari Gas Company 735 17.39 122.23 128.34 122.25 128.34 6.11 228888 128.90 108.02 31 - - -

National Refinery 800 4.20 276.73 284.90 275.00 283.21 6.48 372622 284.90 203.00 200 - - -

Oil & Gas Development XD 43009 12.10 172.81 181.45 172.36 178.81 6.00 734800 181.45 145.02 55 - 15.00 -

Pak Petroleum 11950 9.20 221.25 228.88 221.70 226.21 4.96 2751592 228.88 174.75 90 20B - -

Pak Oilfields 2365 7.52 306.94 321.89 307.31 318.55 11.61 4496890 321.89 231.01 255 - - -

Pak Refinery Limited 350 - 106.22 107.99 105.00 106.46 0.24 29403 114.50 55.00 - - - -

P.S.O 1715 4.99 294.83 298.30 293.53 294.94 0.11 1382566 300.53 262.00 80 - - -

Shell Gas LPG 226 - 33.48 34.89 33.00 33.25 -0.23 17820 40.28 29.10 - - - -

Shell Pakistan 685 10.62 205.55 208.74 206.00 207.05 1.50 52168 209.89 182.05 40 - - -

Paid up Last 60 days 2010 2011

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

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

PERSONAL GOODS

Performance of SR Personal Goods Index

Open High Low Close Change % Change

1,007.63 1,020.67 1,003.41 1,012.96 5.33 0.53

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

10,632,482 - - 47,070.70 mn 137,548.20 mn 1,012.96

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

7.14 0.62 8.64 16.68 2.34 1,002.30

AL-Qadir Textile 76 - 7.38 8.38 7.00 7.00 -0.38 605 8.50 3.00 10 - - -Amtex Limited 2594 9.75 4.36 4.45 4.26 4.29 -0.07 122129 13.00 4.00 30 - - -Artistic Denim 840 6.40 23.44 23.44 23.00 23.03 -0.41 3012 24.59 19.10 20 - - -Aruj Garments 62 3.07 5.40 4.55 4.55 4.55 -0.85 300 5.50 4.10 - - - -Azam Textile 133 0.39 2.61 2.90 2.65 2.82 0.21 19500 3.45 1.32 7.5 - - -Azgard Nine 4493 - 9.45 9.72 9.48 9.56 0.11 4722030 12.32 9.20 - - - -Babri Cotton 33 0.46 10.50 11.49 9.50 11.38 0.88 64102 17.85 8.10 - 15B - -Bannu Woolen XD 76 0.47 13.45 13.50 13.25 13.50 0.05 1598 14.50 9.75 20 - - -Bata (Pak) 76 5.36 656.66 659.00 645.00 646.23-10.43 458 747.48 436.00 - - - -Brothers Textile 98 - 0.49 0.46 0.45 0.46 -0.03 985 1.49 0.15 - - - -Chenab Limited 1150 - 3.05 3.18 3.06 3.13 0.08 15512 3.90 3.00 - - - -Colgate Palm 316 36.17 934.98 965.00 948.00 963.60 28.62 114 965.00 680.00 - - - -Colony Mills Ltd 2442 3.83 2.50 2.55 2.40 2.45 -0.05 4202 3.33 2.17 - - - -Crescent Jute 238 - 0.94 1.12 0.99 0.99 0.05 2551 1.38 0.16 - - - -D S Ind Ltd 600 - 1.68 1.80 1.70 1.72 0.04 64552 2.37 1.46 - - - -Dawood Lawrencepur 514 50.41 41.97 43.35 42.26 42.85 0.88 11600 47.00 36.10 5 - - -Dewan Farooque Spin. 600 2.91 3.61 3.61 3.55 3.61 0.00 500 8.00 3.00 - - - -Dewan Mushtaq Textile 34 0.15 5.01 5.46 4.38 5.00 -0.01 959 7.44 1.80 - - - -Ellcot Spinning 110 0.62 21.00 20.50 20.00 20.50 -0.50 1135 22.20 17.21 35 - - -Fazal Cloth 188 1.36 75.98 72.20 72.19 72.19 -3.79 200 75.98 41.00 100SD - - -Fazal Textile 62 3.28 399.50 419.47 379.53 410.83 11.33 477 490.05 320.00 100 - - -Gadoon Textile XD 234 0.74 67.47 68.00 65.25 67.40 -0.07 8262 71.40 38.30 70 - - -Ghani Value Glass 75 6.84 26.70 26.00 25.70 26.00 -0.70 1001 41.20 25.70 25 - - -Gillette Pakistan 192 - 59.70 62.68 61.00 62.24 2.54 801 71.50 58.75 - - - -Glamour Textile 116 0.38 7.50 7.50 7.50 7.50 0.00 900 8.25 7.50 - - - -Gul Ahmed Textile 635 4.52 30.00 31.50 30.00 31.47 1.47 634 31.50 20.01 12.5 - - -Hira Textile Mills Ltd. 716 0.75 3.93 4.03 3.95 3.99 0.06 15001 4.88 3.35 10 - - -Ibrahim Fibres 3105 3.53 43.40 45.57 43.99 44.92 1.52 317975 45.57 34.05 20 - - -ICC Textile 100 - 1.74 1.74 1.60 1.74 0.00 1001 2.70 0.30 - - - -Ideal Spinning 99 0.57 5.75 6.75 5.01 6.75 1.00 11570 7.29 2.85 - - - -Indus Dyeing 181 2.60 281.50 267.70 267.43 267.43-14.07 156 350.15 209.03 50 - - -J K Spinning 184 1.03 6.45 6.95 5.51 6.76 0.31 3001 9.50 4.05 20 5B - -Janana D Mal 43 0.25 13.95 14.95 14.95 14.95 1.00 947 20.50 13.25 - - - -Kohinoor Ind 303 - 1.69 1.90 1.53 1.64 -0.05 500 2.00 1.25 - - - -Kohinoor Mills 509 - 2.07 2.64 2.05 2.64 0.57 170 3.72 1.52 - - - -Kohinoor Spinning 1300 0.35 1.15 1.20 0.91 0.96 -0.19 706 2.00 0.16 5 - - -Kohinoor Textile 1455 4.05 5.35 5.95 5.30 5.67 0.32 569828 6.06 4.51 - - - -Land Mark Spinning 121 - 1.50 1.50 1.50 1.50 0.00 300 4.00 1.00 - - - -Mohd Farooq 189 - 1.18 1.59 0.99 1.33 0.15 24406 2.08 0.50 - - - -Moonlite (PAK) 22 - 8.39 9.39 9.29 9.39 1.00 868 11.99 4.50 - - - -Nagina Cotton 187 0.86 16.70 16.75 15.70 16.75 0.05 10229 17.50 12.80 20SD - - -Nishat (Chunian) 1596 1.97 23.49 24.04 23.55 23.70 0.21 1927360 25.14 17.82 15 - - -Nishat Mills 3516 5.78 66.94 68.35 67.05 67.31 0.37 2208558 68.35 47.31 25 45R - -Pak Synthetic 560 3.21 9.11 9.60 9.25 9.50 0.39 23502 10.45 5.16 - - - -Premium Textile 62 0.46 28.90 29.00 29.00 29.00 0.10 4000 31.03 25.00 50 - - -Quetta Textile 130 0.62 39.87 41.79 38.01 38.01 -1.86 419 47.00 25.80 20 - - -Ravi Textile 250 - 1.45 1.65 1.26 1.50 0.05 233014 1.99 1.26 - - - -Redco Textile 213 - 0.89 0.99 0.55 0.99 0.10 5500 1.45 0.55 - - - -Rupali Poly 341 4.60 37.65 37.50 36.53 36.61 -1.04 3003 38.10 31.25 40 - - -Saif Textile 264 0.36 4.44 4.54 4.00 4.45 0.01 3342 6.85 3.10 - - - -Salfi Textile 33 0.29 61.90 64.30 58.85 64.30 2.40 101 68.90 23.68 25 - - -Samin Textile 134 4.99 6.40 5.99 5.41 5.99 -0.41 19949 8.00 5.11 - 100R - -Sapphire Fibre 197 1.12 122.71 128.10 120.00 120.00 -2.71 442 131.50 94.05 15 - - -Sargodha Spinning 312 0.44 2.46 2.70 2.25 2.25 -0.21 2002 3.43 1.50 5 - - -Service Ind 120 7.96 230.22 234.44 230.01 232.53 2.31 3103 276.50 169.00 - - - -Shadab Textile 30 0.39 13.19 13.68 12.20 13.68 0.49 5100 15.09 7.56 10 - - -Shadman Cot 176 1.65 9.05 10.05 9.05 9.05 0.00 520 15.00 7.00 - - - -Shahtaj Textile 97 - 19.56 19.25 19.20 19.22 -0.34 500 21.90 15.61 45 - - -Shahzad Textile 180 0.36 5.05 6.05 5.00 6.05 1.00 2984 9.48 3.76 5 - - -Suraj Cotton 180 0.85 37.80 39.69 37.50 38.04 0.24 22516 39.69 29.00 50 - - -Tata Textile 173 0.35 36.00 37.00 35.95 36.57 0.57 500 37.00 16.64 25 - - -Thal Limited 307 5.60 127.92 131.60 127.05 130.97 3.05 79150 132.00 86.50 80 20B - -Treet Corp 418 9.51 59.28 60.44 59.24 59.70 0.42 76565 63.30 37.25 - - - -Yousuf Weaving 400 0.57 1.65 1.70 1.45 1.65 0.00 403 2.00 0.86 - - - -ZahidJee Textile 341 0.51 3.90 3.80 3.80 3.80 -0.10 4000 4.87 2.00 - - - -Zil Limited 53 3.65 54.95 55.40 53.60 54.51 -0.44 1011 58.99 36.00 35 - - -

Paid up Last 60 days 2010 2011

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

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

HOUSEHOLD GOODS

Performance of SR Household Goods Index

Open High Low Close Change % Change

1,131.71 1,155.88 1,127.06 1,148.27 16.55 1.46

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

885,749 - - 3,763.71 mn 5,227.98 mn 1,148.27

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

3.25 0.35 10.64 6.27 1.93 1,126.81

Pak Elektron 1174 3.68 14.00 14.65 14.00 14.62 0.62 822692 15.09 12.90 - 10B - -

Singer Pak 341 22.30 20.00 19.98 19.51 19.85 -0.15 700 20.79 16.51 - - - -

Tariq Glass Ind 231 2.45 20.60 20.75 20.45 20.51 -0.09 62316 21.40 15.90 17.5 - - -

Paid up Last 60 days 2010 2011

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

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

FOOD PRODUCERS

Performance of SR Food Producers Index

Open High Low Close Change % Change

1,691.69 1,704.02 1,645.86 1,684.46 -7.23 -0.43

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

759,641 - - 11,335.33 mn 226,816.99 mn 1,707.64

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

36.68 11.11 30.30 30.57 0.83 1,684.46

Abdullah Shah Ghazi Sugar 793 11.54 5.01 6.00 6.00 6.00 0.99 500 9.38 4.06 - - - -Adam Sugar 58 1.20 19.40 19.50 19.10 19.40 0.00 5300 20.50 11.23 25 - - -AL-Noor Sugar 186 3.65 50.99 50.00 50.00 50.00 -0.99 1500 53.02 40.00 50 - - -Ansari Sugar 244 0.24 5.10 5.00 5.00 5.00 -0.10 1000 6.99 4.03 - - - -Chashma Sugar 287 0.98 12.40 12.99 11.92 12.08 -0.32 25204 15.47 8.50 - - - -Crescent Sugar 214 - 6.90 6.00 5.90 5.93 -0.97 1500 6.90 5.00 - - - -Dewan Sugar 365 - 3.66 4.00 3.40 3.81 0.15 199763 5.59 1.25 - - - -Faran Sugar 217 4.02 19.59 20.30 20.00 20.00 0.41 512 21.73 18.55 25 - - -Habib Sugar 600 7.52 33.38 33.50 33.16 33.45 0.07 110132 36.50 29.00 25 25B - -Habib-ADM Ltd 200 11.20 12.22 12.22 12.05 12.10 -0.12 2032 16.04 11.69 40 - - -Ismail Ind 505 33.39 76.41 75.00 72.59 74.79 -1.62 1302 81.12 68.60 17.5 110R - -J D W Sugar 490 3.16 89.79 90.50 88.50 89.20 -0.59 18175 92.50 65.99 7010B 12.5R - -Mehran Sugar 143 3.52 58.89 60.00 57.50 59.64 0.75 17557 68.49 50.50 35 20B - -Mirpurkhas SugarXDXB 84 4.34 50.49 52.89 51.26 52.00 1.51 413 68.22 48.11 15 20B - -Mirza Sugar 141 0.62 6.20 6.42 6.15 6.15 -0.05 11538 7.18 4.20 10 - - -National Foods 414 22.61 63.11 65.00 60.00 60.60 -2.51 8767 75.50 39.01 12 - - -Noon Sugar 165 - 11.03 11.10 10.03 10.03 -1.00 23965 14.84 10.03 - - - -Pangrio Sugar 109 0.91 6.24 6.25 6.15 6.25 0.01 1062 6.99 4.25 10 - - -Premier Sugar 38 8.31 46.47 48.70 44.81 45.27 -1.20 6587 53.81 32.50 - - - -Quice Food 107 - 2.89 3.20 2.62 2.63 -0.26 293000 3.40 2.02 - - - -Sanghar Sugar 119 1.29 14.25 14.50 14.48 14.48 0.23 278 15.00 13.00 15 - - -Shahmurad Sugar 211 6.60 10.06 10.47 9.86 10.10 0.04 27977 13.50 9.85 10 - - -Shahtaj Sugar 120 - 68.74 65.31 65.31 65.31 -3.43 265 100.26 57.00 - - - -UniLever Pakistan 665 20.27 4342.50 4359.99 4256.23 4342.00 -0.50 436 4610.00 3876.00 178 - - -Wazir Ali 80 - 8.56 8.30 7.60 7.68 -0.88 510 8.89 4.75 - - - -

Paid up Last 60 days 2010 2011

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

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

AUTOMOBILE AND PARTS

Performance of SR Automobile and Parts Index

Open High Low Close Change % Change

1,213.07 1,234.90 1,207.40 1,224.03 10.96 0.90

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

652,311 - - 6,768.53 mn 44,970.04 mn 1,224.03

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

4.33 1.10 25.35 20.42 4.72 1,182.04

Agriautos Ind 144 5.74 74.50 75.80 74.01 75.71 1.21 190 77.25 65.75 90 - - -

Atlas Battery 101 5.82 193.71 195.50 193.50 194.87 1.16 4726 196.00 136.40 100 20B - -

Atlas Engineering Ltd 247 15.35 16.20 17.19 16.00 17.19 0.99 902 19.88 15.00 - - - -

Atlas Honda 626 10.06 132.37 138.95 134.00 138.89 6.52 2736 138.95 94.00 - - - -

Dewan Motors 890 - 2.35 2.45 2.31 2.35 0.00 203486 2.89 1.20 - - - -

Exide (PAK) 56 4.87 196.50 206.32 192.00 206.32 9.82 108914 208.95 136.00 60 - - -

General Tyre 598 20.75 22.93 24.07 23.05 24.07 1.14 48232 25.24 21.00 20 - - -

Ghandhara Nissan 450 3.47 4.86 5.30 4.96 5.00 0.14 114314 5.67 4.03 - - - -

Ghani Automobile Ind 200 6.56 4.30 4.20 4.20 4.20 -0.10 500 5.75 4.00 - - - -

Honda Atlas Cars 1428 - 11.28 11.69 11.40 11.57 0.29 60390 13.40 10.20 - - - -

Indus Motors 786 5.87 256.98 258.00 255.00 257.21 0.23 9523 282.45 219.10 150 - - -

Pak Suzuki 823 11.46 72.00 74.80 71.55 71.97 -0.03 98398 77.90 66.75 - - - -

Paid up Last 60 days 2010 2011

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

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

INDUSTRIAL ENGINEERING

Performance of SR Industrial Engineering Index

Open High Low Close Change % Change

1,537.55 1,572.54 1,532.46 1,550.57 13.01 0.85

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

353,747 - - 1,336.62 mn 33,694.46 mn 1,550.57

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

8.48 3.22 38.02 131.49 15.51 1,536.55

Ados Pak 66 1.05 16.58 16.40 16.32 16.37 -0.21 500 20.65 14.12 - - - -

AL-Ghazi Tractor 215 5.64 236.03 238.90 235.00 235.60 -0.43 29914 239.89 200.00 150 - - -

Dewan Auto Engineering 214 - 1.59 1.85 1.40 1.55 -0.04 33002 2.40 0.21 - - - -

Ghandhara Ind 213 11.38 11.50 12.40 11.51 12.29 0.79 102058 14.80 10.55 - - - -

Hinopak Motor 124 - 128.13 131.00 126.10 129.32 1.19 6531 147.89 113.00 - - - -

KSB Pumps 132 7.27 61.36 62.90 60.01 60.73 -0.63 4443 81.78 58.81 - - - -

Millat Tractors XB 366 6.77 509.46 519.99 510.60 517.33 7.87 176927 519.99 430.50 650 25B - -

Pak Engineering 57 633.33 240.00 252.00 228.00 228.00 -12.00 371 324.80 228.00 100 - - -

Paid up Last 60 days 2010 2011

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

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

GENERAL INDUSTRIALS

Performance of SR General Industrials Index

Open High Low Close Change % Change

1,032.36 1,044.00 1,028.35 1,037.97 5.62 0.54

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

970,171 - - 3,043.31 mn 39,365.53 mn 1,038.51

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

1.87 0.82 43.91 15.55 8.30 1,019.70

Cherat Papersack 115 2.75 76.12 78.25 76.50 77.08 0.96 98624 83.23 34.00 20 25B - -

ECOPACK Ltd 230 - 2.78 2.90 2.70 2.82 0.04 122643 3.30 1.82 - - - -

Ghani Glass 1067 4.52 49.30 49.59 49.05 49.21 -0.09 901 61.10 45.30 25 10B - -

MACPAC Films 389 - 3.37 3.88 2.75 3.24 -0.13 1120 4.05 1.60 - - - -

Merit Pack 47 56.78 23.90 23.00 22.71 22.71 -1.19 2009 25.90 15.10 - - - -

Packages Ltd 844 67.18 129.96 131.74 129.00 131.01 1.05 697448 136.74 100.11 - - - -

Tri-Pack Films 300 9.26 124.00 128.20 124.50 126.98 2.98 47426 128.70 98.10 - - - -

Paid up Last 60 days 2010 2011

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

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

CONSTRUCTION AND MATERIALS

Performance of SR Construction and Materials Index

Open High Low Close Change % Change

1,004.34 1,028.67 994.81 1,004.70 0.37 0.04

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

21,519,696 - - 54,792.74 mn 71,978.10 mn 1,010.11

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

8.10 0.58 7.10 19.04 2.35 983.81

Al-Abbas Cement 1828 - 3.16 3.44 3.17 3.40 0.24 3016 3.98 2.80 - 100R - -

Attock Cement 866 6.60 62.02 62.95 61.71 62.68 0.66 19617 65.99 57.60 50 - - -

Balochistan Glass Ltd 858 - 2.99 2.99 2.70 2.71 -0.28 4978 4.24 1.10 - - - -

Berger Paints 182 - 21.96 22.19 21.65 21.76 -0.20 11433 24.16 14.12 - 122R - -

Bestway Cement 3257 - 20.05 19.10 19.10 19.10 -0.95 1000 25.99 19.10 - - - -

Buxly Paints 14 - 13.60 13.70 12.75 13.70 0.10 502 15.50 7.91 - - - -

Cherat Cement 956 25.41 10.95 11.20 11.00 11.18 0.23 11024 12.75 9.51 - - - -

Dadabhoy Cement 982 13.23 1.85 1.86 1.70 1.72 -0.13 4950 2.49 1.31 - - - -

Dandot Cement 948 - 2.50 2.51 2.49 2.51 0.01 3000 3.49 1.11 - - - -

Dewan Cement 3891 - 2.24 2.40 2.26 2.30 0.06 273793 3.10 1.30 - - - -

DG Khan Cement Ltd 3651 125.75 30.14 31.00 29.90 30.18 0.04 12376648 32.10 23.52 - 20R - -

Fauji Cement 6933 15.00 5.00 5.10 4.91 4.95 -0.05 532712 5.55 4.52 - - - -

Fecto Cement 502 3.70 7.00 7.19 7.00 7.10 0.10 17500 8.20 4.25 - - - -

Flying Cement Ltd 1760 - 1.75 1.85 1.75 1.75 0.00 133945 2.25 1.60 - - - -

Frontier Ceramics 77 - 2.00 2.30 1.71 1.78 -0.22 28783 5.00 1.18 - - - -

Gharibwal Cement 2319 - 7.97 8.00 7.50 7.65 -0.32 3461 9.19 2.70 - - - -

Javedan Cement 581 - 59.75 62.00 59.00 60.05 0.30 610 62.00 56.05 - - - -

Kohat Cement 1288 - 6.38 6.75 6.31 6.69 0.31 21739 8.70 5.80 - - - -

Lafarge Pakistan Cmt. 13126 - 3.20 3.57 3.27 3.31 0.11 5967592 3.79 2.71 - - - -

Lucky Cement 3234 6.74 75.11 76.10 74.80 75.05 -0.06 1164903 79.98 69.20 40 - - -

Maple Leaf Cement 5261 1.33 2.88 2.99 2.80 2.86 -0.02 818032 3.30 2.66 - - - -

Pioneer Cement 2228 - 6.90 7.09 6.83 6.94 0.04 120060 8.58 6.52 - - - -

Safe Mix Concrete 200 - 7.00 7.20 7.00 7.20 0.20 505 7.50 5.25 - - - -

Shabbir Tiles 361 - 8.70 8.99 8.16 8.69 -0.01 379 9.60 6.30 - - - -

Paid up Last 60 days 2010 2011

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

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

INDUSTRIAL METALS AND MINING

Performance of SR Industrial Metals and Mining Index

Open High Low Close Change % Change

1,084.51 1,100.22 1,080.04 1,089.97 5.46 0.50

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

153,282 - - 3,596.11 mn 10,662.59 mn 1,094.17

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

3.49 1.16 33.10 30.91 8.86 1,055.58

Crescent Steel 565 4.24 27.01 27.50 27.05 27.15 0.14 20552 28.45 24.00 30 - - -

Dost Steels Ltd 675 - 2.63 2.80 2.56 2.61 -0.02 61502 3.39 2.00 - - - -

Huffaz Pipe 555 9.64 15.40 15.80 15.30 15.43 0.03 15919 16.05 12.25 - - - -

International Ind 1199 12.27 58.47 59.19 58.00 58.89 0.42 55178 62.20 44.00 40 20B - -

Siddiqsons Tin 785 11.36 10.00 10.00 10.00 10.00 0.00 131 10.70 8.00 7.5 - - -

Paid up Last 60 days 2010 2011

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

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

FORESTRY AND PAPER

Performance of SR Forestry & Paper Index

Open High Low Close Change % Change

1,229.51 1,284.01 1,225.08 1,239.71 10.20 0.83

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

677,174 - - 1,186.83 mn 3,435.27 mn 1,239.71

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

6.35 0.47 7.47 25.28 3.98 1,161.02

Century Paper 707 - 18.68 19.47 18.82 19.04 0.36 595188 19.49 15.28 - - - -

Pak Paper Product 50 8.70 45.90 46.42 45.13 45.25 -0.65 1544 48.90 38.61 2533.33B - -

Security Paper 411 6.96 44.95 47.19 44.50 45.09 0.14 80442 47.70 38.00 50 - - -

Paid up Last 60 days 2010 2011

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

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

CHEMICALS

Performance of SR Chemicals Index

Open High Low Close Change % Change

1,427.62 1,454.94 1,418.54 1,446.54 18.92 1.32

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

31,616,937 - - 52,251.88 mn 326,555.87 mn 1,446.54

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

8.91 3.12 35.00 48.81 5.48 1,372.62

Agritech Limited 3924 8.63 23.00 24.10 23.20 23.81 0.81 21820 24.85 20.26 - - - -

BOC (Pak) 250 13.76 95.47 100.22 96.80 100.20 4.73 63147 100.22 72.00 15 - - -

Clariant Pak 273 7.00 181.65 184.89 181.50 183.00 1.35 565319 185.95 149.72 - - - -

Dawood Hercules 1203 8.25 193.89 202.50 193.50 199.01 5.12 460668 202.50 165.00 40 - - -

Descon Chemical 1996 - 2.84 2.95 2.77 2.90 0.06 30412 3.74 2.00 - - - -

Descon Oxychem Ltd 1020 - 8.58 8.65 8.34 8.48 -0.10 249847 9.25 3.41 - - - -

Dewan Salman 3663 - 3.30 3.45 3.26 3.34 0.04 2689474 4.24 1.32 - - - -

Dynea Pak 94 - 11.34 11.39 11.00 11.01 -0.33 1146 13.79 9.15 15 - - -

Engro Corporation Ltd 3277 10.89 194.17 199.10 194.75 198.28 4.11 3689676 200.88 174.00 40 - - -

Engro Polymer 6635 - 14.27 14.70 14.27 14.56 0.29 647148 15.20 12.90 - - - -

Fatima Fertilizer 22000 - 10.97 11.10 10.85 11.07 0.10 782568 11.39 9.16 - - - -

Fauji Fertilizer 6785 9.47 129.44 131.20 128.01 130.73 1.29 2704571 133.50 105.50 95 - - -

Fauji Fert.Bin Qasim 9341 7.02 37.02 37.50 36.69 37.21 0.19 6139151 38.05 27.57 17.5 - - -

Ghani Gases Ltd 725 9.30 11.27 12.27 11.40 12.27 1.00 376689 13.85 11.00 - - - -

ICI Pakistan 1388 8.55 148.41 152.49 148.00 151.79 3.38 1070725 152.49 117.49 55 - - -

Ittehad Chemical 360 12.58 33.00 33.90 31.35 33.71 0.71 1602 36.00 21.39 5 - - -

Lotte Pakistan 15142 5.25 14.54 14.78 14.54 14.71 0.17 12450207 14.83 8.44 - - - -

Nimir Ind Chemical 1106 - 1.98 2.05 1.95 1.96 -0.02 249094 2.74 1.30 - - - -

Pak Gum 42 - 22.99 24.00 21.85 23.70 0.71 346 24.00 17.01 - - - -

Shaffi Chemical 120 - 2.44 2.39 2.05 2.35 -0.09 2122 3.40 1.80 - - - -

Sitara Chem Ind 214 10.20 128.45 127.00 124.05 124.42 -4.03 102 139.40 101.00 25 5B - -

Sitara Peroxide 551 14.48 13.15 13.50 13.16 13.32 0.17 230287 14.69 8.17 - - - -

Wah-Noble 90 7.00 36.42 36.75 36.35 36.38 -0.04 3702 43.75 32.00 50 - - -

Paid up Last 60 days 2010 2011

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

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

PHARMA AND BIO TECH

Performance of SR Pharma and Bio Tech Index

Open High Low Close Change % Change

979.33 993.80 978.31 986.85 7.52 0.77

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

45,753 - - 3,904.20 mn 33,227.52 mn 997.07

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

7.73 1.72 22.31 44.54 5.76 975.33

Abbott (Lab) 979 9.55 108.69 109.74 108.05 109.00 0.31 3227 112.50 89.88 20 - - -

Ferozsons (Lab) 250 6.55 87.04 87.50 86.50 86.75 -0.29 2556 113.00 82.20 - 20B - -

GlaxoSmithKline 1707 15.39 85.05 86.20 85.00 85.58 0.53 18415 89.98 66.50 - - - -

Highnoon (Lab) 165 8.15 29.02 29.90 29.20 29.43 0.41 1700 30.25 23.50 - - - -

IBL HealthCare Ltd 200 6.82 8.00 8.48 7.99 8.46 0.46 5908 9.00 7.16 - - - -

Searle Pak 306 5.40 59.63 60.50 59.00 60.09 0.46 13888 64.50 59.00 30 - - -

Paid up Last 60 days 2010 2011

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

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

INDUSTRIAL TRANSPORTATION

Performance of SR Industrial Transportation Index

Open High Low Close Change % Change

731.22 748.51 706.26 720.63 -10.59 -1.45

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

86,549 - - 3,242.17 mn 12,733.91 mn 752.39

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

5.54 1.41 25.53 11.08 2.00 720.63

Pak Int Cont.Terminal 1092 6.91 70.52 72.50 68.00 69.05 -1.47 83389 77.77 60.05 40 - - -

PNSC 1321 40.68 37.15 37.50 36.00 37.43 0.28 3160 40.42 32.36 15 - - -

Paid up Last 60 days 2010 2011

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

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

BOOK CLOSURES

BOC Pakistan 11-Jan 17-Jan - - 17-JanBuxly Paints # 11-Jan 19-Jan - - 19-JanTRG Pakistan 12-Jan 20-Jan - - 20-JanShadman Cotton Mills # 12-Jan 18-Jan - - 18-JanKohinoor Mills # 13-Jan 20-Jan - - 20-JanMybank Ltd. # 13-Jan 19-Jan - - 20-JanSummit Bank # 13-Jan 19-Jan - - 20-JanEllcot Spin Mills # 14-Jan 20-Jan - - 20-JanProsperity Weaving Mills # 14-Jan 20-Jan - - 20-JanMehran Sugar Mills 14-Jan 21-Jan - - 21-JanDawood Lawrencepur # 15-Jan 21-Jan - - 21-JanHabib Sugar Mills 15-Jan 29-Jan 25.25(B) 7-Jan 29-JanLakson Tobacco # 18-Jan 25-Jan - - 25-JanHaseeb Waqas Sugar Mills 18-Jan 25-Jan 10-Jan 10-Jan 25-JanNagina Cotton Mills # 19-Jan 25-Jan - - 25-JanSanghar Sugar Mills 19-Jan 31-Jan 15-Jan 11-Jan 31-JanSindh Abadgar's Sugar Mills 19-Jan 28-Jan 10-Jan - 28-JanShahtaj Sugar Mills 20-Jan 1-Feb - - 27-JanShahmurad Sugar Mills 22-Jan 2-Feb 10-Jan 14-Jan 28-JanFecto Sugar Mills 22-Jan 29-Jan - - 29-JanAl-Noor Sugar Mills 22-Jan 2-Feb 19-Feb - 28-Jan

INDICATIONS

# Extraordinary General Meeting

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

OTHER SECTORS

Pakistan Cables 53.48 53.2 53 53.01 -0.47 2015

TRG Pakistan Ltd. 3.38 3.52 3.37 3.4 0.02 1486977

Murree Brewery Co. 92 95 91.11 91.25 -0.75 5029

Shezan International 119.8 124.98 116.21 122.74 2.94 318

Grays of Cambridge 50.45 51 49.5 50 -0.45 522

Lakson Tobacco 292.8 293 293 293 0.2 2050

Pak Tobacco 119 119.98 116.1 116.51 -2.49 2173

Shifa Int.Hospitals 30.07 30.75 29.9 29.9 -0.17 9427

Eye Television 23.89 25.08 23.01 24.67 0.78 38433

P.I.A.C.(A) 2.38 2.55 2.43 2.46 0.08 243506

Pace (Pak) Ltd. 2.54 2.64 2.52 2.54 0 721653

Netsol Technologies 19.28 20.15 19.13 20.01 0.73 1951094

Symbols Open High Low Close Change Vol

Page 7: The Financial Daily-Epaper-07-01-2011

Friday, January 7, 20117

Technical Analysis Leverage Position

KSE 100 INDEX

Technical Outlook

KSE 100 INDEX closed up 182.63 points at 12,323.47. Volume was 44 per

cent above average and Bollinger Bands were 1 per cent wider than nor-

mal. As far as resistance level is concern, the market will see major 1st

resistance level at 12,422.05 and 2nd resistance level at 12,520.60, while

Index will continue to find its 1st support level at 12,182.85 and 2nd sup-

port level at 12,042.25.

KSE 100 INDEX is currently 19.0 per cent above its 200-day moving average

and is displaying an upward trend. Volatility is extremely high when compared

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

reflect moderate flows of volume into INDEX (mildly bullish). Trend forecasting

oscillators are currently bullish on INDEX. Momentum oscillator is currently

indicating that INDEX is currently in an overbought condition.

RSI (14-day) 76.94 Support 1 12,182.85

MA (5-day) 12,089.30 Support 2 12,042.25

MA (10-day) 11,997.99 Resistance 1 12,422.05

MA (100-day) 10,635.50 Resistance 2 12,520.60

MA (200-day) 10,361.94 Pivot 12,281.45

Technical Analysis Leverage Position

Dera Ghazi Khan Cement Co Ltd

Brokerage House Fair Value Rs Recommendations

Technical Outlook

DGKC closed up 0.04 at 30.18. Volume was 187 per cent above average

(trending) and Bollinger Bands were 38 per cent narrower than normal.

DGKC is currently 12.1 per cent above its 200-day moving average and is

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

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

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

Trend forecasting oscillators are currently bearish on DGKC.

*Arif Habib Ltd 42 Buy

AKD Securities Ltd 43.29 Buy

TFD Research 36.85 Positive

RSI (14-day) 52.74 Free Float Shares (mn) 182.55

MA (10-day) 29.96 Free Float Rs (mn) 5,509.35

MA (100-day) 27.12 ** NOI Rs (mn) 35.38

MA (200-day) 26.93 Mean 30.31

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

Technical Analysis Leverage Position

Fauji Fertiliser Bin Qasim Ltd

Brokerage House Fair Value Rs Recommendations

Technical Outlook

FFBL closed up 0.19 at 37.21. Volume was 142 per cent above average

and Bollinger Bands were 14 per cent narrower than normal.

FFBL is currently 23.4 per cent above its 200-day moving average and is

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

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

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

Trend forecasting oscillators are currently bullish on FFBL.

*Arif Habib Ltd 34.7 Sell

AKD Securities Ltd 32.06 Accumulate

TFD Research 29.1 Negative

RSI (14-day) 62.22 Free Float Shares (mn) 326.94

MA (10-day) 36.55 Free Float Rs (mn) 12,165.38

MA (100-day) 31.14 ** NOI Rs (mn) 81.20

MA (200-day) 30.17 Mean 37.11

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

Technical Analysis Leverage Position

National Bank of Pakistan

Brokerage House Fair Value Rs Recommendations

Technical Outlook

NBP closed up 0.76 at 77.42. Volume was 36 per cent above average and

Bollinger Bands were 30 per cent wider than normal.

NBP is currently 14.3 per cent above its 200-day moving average and is

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

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

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

ing oscillators are currently bullish on NBP. Momentum oscillator is current-

ly indicating that NBP is currently in an overbought condition.

*Arif Habib Ltd 82.1 Buy

AKD Securities Ltd 61.96 Neutral

TFD Research 92.3 Positive

RSI (14-day) 70.68 Free Float Shares (mn) 318.44

MA (10-day) 74.84 Free Float Rs (mn) 24,653.95

MA (100-day) 66.70 ** NOI Rs (mn) 93.69

MA (200-day) 67.88 Mean 77.17

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

Technical Analysis Leverage Position

Pakistan Oilfields Ltd

Brokerage House Fair Value Rs Recommendations

Technical Outlook

POL closed up 11.61 at 318.55. Volume was 168 per cent above average

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

POL is currently 32.4 per cent above its 200-day moving average and is

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

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

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

ing oscillators are currently bullish on POL. Momentum oscillator is current-

ly indicating that POL is currently in an overbought condition.

*Arif Habib Ltd 317.2 Hold

AKD Securities Ltd 296.6 Buy

TFD Research 281.35 Negative

RSI (14-day) 77.43 Free Float Shares (mn) 107.94

MA (10-day) 298.57 Free Float Rs (mn) 34,384.96

MA (100-day) 250.90 ** NOI Rs (mn) 323.31

MA (200-day) 240.54 Mean 313.67

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

Technical Analysis Leverage Position

Engro Corporation

Brokerage House Fair Value Rs Recommendations

Technical Outlook

ENGRO closed up 4.11 at 198.28. Volume was 182 per cent above aver-

age (trending) and Bollinger Bands were 24 per cent wider than normal.

ENGRO is currently 7.0 per cent above its 200-day moving average and is

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

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

reflect moderate flows of volume into ENGRO (mildly bullish). Trend fore-

casting oscillators are currently bullish on ENGRO.

*Arif Habib Ltd 176 Sell

AKD Securities Ltd 238.8 Buy

TFD Research 208.75 Neutral

RSI (14-day) 60.66 Free Float Shares (mn) 147.48

MA (10-day) 194.36 Free Float Rs (mn) 29,242.65

MA (100-day) 180.28 ** NOI Rs (mn) 59.76

MA (200-day) 185.30 Mean 196.58

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

Technical Analysis Leverage Position

Bank Al-Falah Ltd

Brokerage House Fair Value Rs Recommendations

Technical Outlook

BAFL closed up 0.04 at 11.22. Volume was 12 per cent above average

and Bollinger Bands were 14 per cent narrower than normal.

BAFL is currently 14.8 per cent above its 200-day moving average and is

displaying an upward trend. Volatility is high 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 13 Buy

AKD Securities Ltd 10.25 Accumulate

TFD Research 14.01 Positive

RSI (14-day) 61.19 Free Float Shares (mn) 674.58

MA (10-day) 11.04 Free Float Rs (mn) 7,568.77

MA (100-day) 9.27 ** NOI Rs (mn) N/A

MA (200-day) 9.78 Mean 11.27

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

Technical Analysis Leverage Position

Pakistan Petroleum Ltd

Brokerage House Fair Value Rs Recommendations

Technical Outlook

PPL closed up 4.96 at 226.21. Volume was 178 per cent above average

(trending) and Bollinger Bands were 27 per cent narrower than normal.

PPL is currently 15.6 per cent above 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 moderate flows of volume into PPL (mildly bullish). Trend forecast-

ing oscillators are currently bullish on PPL. Momentum oscillator is current-

ly indicating that PPL is currently in an overbought condition.

*Arif Habib Ltd 235.3 Hold

TFD Research 239.15 Neutral

RSI (14-day) 73.70 Free Float Shares (mn) 247.57

MA (10-day) 217.33 Free Float Rs (mn) 56,002.85

MA (100-day) 197.62 ** NOI Rs (mn) 49.66

MA (200-day) 195.69 Mean 224.51

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

EQUITY INVESTMENT INSTRUMENTS

Performance of SR Equity Investment Instruments Index

Open High Low Close Change % Change

1,346.06 1,368.65 1,333.89 1,350.61 4.55 0.34

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

2,377,108 - - 29,771.58 mn 18,053.78 mn 1,350.61

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

19.04 0.42 2.21 104.74 8.55 1,322.98

AL-Meezan Mutual F. 1375 7.31 8.68 8.98 8.65 8.77 0.09 169327 8.99 5.85 18.5 - - -

B R R Guardian Mod. 780 4.20 1.75 1.90 1.75 1.85 0.10 29944 2.79 0.90 0 - - -

Constellation Modaraba 65 3.41 1.15 1.56 1.00 1.50 0.35 10244 1.99 0.90 - - - -

Crescent St Modaraba 200 1.40 0.64 0.60 0.56 0.56 -0.08 34817 1.10 0.16 1.2 - - -

Elite Cap Modaraba 113 3.46 2.77 3.00 2.75 2.77 0.00 700 3.49 1.73 5 - - -

Equity Modaraba 524 10.63 1.55 1.71 1.57 1.70 0.15 64318 2.37 0.90 - - - -

First Capital Mutual F. 300 8.75 3.10 3.50 3.50 3.50 0.40 1056 5.50 2.55 - - - -

First Dawood Mutual F. 581 0.63 2.08 2.14 2.00 2.00 -0.08 25550 2.28 1.30 - - - -

Golden Arrow 760 2.25 3.19 3.20 3.06 3.15 -0.04 157682 3.80 2.56 17 - - -

H B L Modaraba 397 2.57 7.79 7.70 7.70 7.70 -0.09 300 8.49 5.11 11 - - -

Habib Modaraba 1008 5.74 6.96 6.84 6.65 6.66 -0.30 34700 7.00 5.80 21 - - -

JS Growth Fund 3180 70.38 5.62 5.89 5.50 5.63 0.01 673415 5.89 2.65 5 - - -

JS Value Fund 1186 18.50 4.99 5.20 4.90 5.18 0.19 451962 5.20 2.31 10 - - -

KASB Modaraba 283 1.25 1.60 1.70 1.55 1.70 0.10 2016 2.23 1.26 2.8 - - -

Meezan Balanced Fund 1200 7.60 7.83 7.98 7.90 7.90 0.07 1800 8.25 5.15 15.5 - - -

NAMCO Balanced Fund 1000 5.78 3.62 3.74 3.25 3.70 0.08 26086 4.24 2.40 15 - - -

Nat Bank Modaraba 250 5.69 6.16 6.15 6.15 6.15 -0.01 200 7.74 4.50 10 - - -

PICIC Energy Fund 1000 1.98 6.74 6.85 6.77 6.80 0.06 25240 7.18 4.56 10 - - -

PICIC Growth Fund 2835 8.35 13.03 13.12 12.90 13.03 0.00 296440 13.40 7.90 20 - - -

PICIC Inv Fund 2841 7.43 6.49 6.64 6.40 6.54 0.05 151090 6.74 3.50 10 - - -

Prud Modaraba 1st 872 2.27 1.07 1.10 1.00 1.00 -0.07 214005 1.19 0.81 3 - - -

Stand Chart Modaraba 454 4.63 9.31 9.50 9.40 9.45 0.14 4595 10.29 7.81 17 - - -

Tri-Star 1st Modaraba 212 - 1.39 1.35 1.35 1.35 -0.04 264 4.50 0.50 - - - -

U D L Modaraba 264 1.72 6.14 6.06 6.06 6.06 -0.08 1031 6.99 4.71 12.5 - - -

Paid up Last 60 days 2010 2011

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

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

FINANCIAL SERVICES

Performance of SR Financial Services Index

Open High Low Close Change % Change

404.48 410.57 401.29 405.54 1.06 0.26

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

3,500,406 - - 30,336.44 mn 19,028.97 mn 406.57

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

11.34 0.27 0.91 99.56 3.39 394.04

AMZ Ventures 225 1.57 0.65 0.69 0.58 0.69 0.04 8603 0.95 0.33 - - - -

Arif Habib Investments 360 3.59 18.25 18.29 17.91 18.25 0.00 21240 19.98 13.50 - 20B - -

Arif Habib Limited 450 13.30 26.16 26.65 26.01 26.07 -0.09 27092 28.95 24.40 - 20B - -

Arif Habib Corp 3750 4.79 26.30 26.65 26.00 26.08 -0.22 3579433 27.02 21.40 30 - - -

Dawood Cap Mangt. XB 150 1.34 1.50 1.50 1.50 1.50 0.00 3270 2.14 1.05 - - - -

Dawood Equities 250 - 1.90 2.00 1.91 1.98 0.08 28901 2.69 1.51 - - - -

First Credit & Invest Bank Ltd 650 14.33 3.20 3.44 2.80 3.44 0.24 3001 4.50 2.15 - - - -

First National Equity 575 - 9.00 8.46 8.00 8.46 -0.54 1619 10.70 6.84 - - - -

Grays Leasing 215 - 1.90 2.50 1.51 2.48 0.58 2026 2.89 0.18 - - - -

IGI Investment Bank 2121 18.06 2.81 2.99 2.62 2.89 0.08 47151 3.90 1.50 - - - -

Invest and Fin Sec 600 710.00 7.00 7.10 7.00 7.10 0.10 5501 8.88 6.16 11.5 - - -

Invest Bank 2849 - 0.75 0.70 0.70 0.70 -0.05 5000 0.97 0.50 - - - -

Ist Cap Securities 3166 - 3.09 3.37 3.00 3.14 0.05 29440 4.80 3.00 - 10B - -

Ist Dawood Bank 626 0.63 1.75 1.95 1.76 1.77 0.02 2002 2.40 1.05 - - - -

Jah Siddiq Co 7633 - 11.02 11.17 10.96 11.03 0.01 2189771 14.05 8.81 10 - - -

JOV and CO 508 - 3.98 4.30 3.90 4.04 0.06 878047 5.38 1.96 - - - -

JS Investment 1000 27.75 6.68 6.71 6.62 6.66 -0.02 52403 7.59 5.10 - - - -

KASB Securities 1000 - 4.74 5.00 4.70 4.83 0.09 130493 5.43 3.50 - - - -

Orix Leasing 821 4.85 6.58 6.60 6.60 6.60 0.02 984 7.29 4.70 - - - -

Pervez Ahmed Sec 775 - 2.02 2.14 2.00 2.04 0.02 65826 2.70 1.41 - - - -

Sec Inv Bank 514 16.00 4.00 4.00 3.50 4.00 0.00 1002 4.99 1.65 - - - -

Paid up Last 60 days 2010 2011

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

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

LIFE INSURANCE

Performance of SR Life Insurance Index

Open High Low Close Change % Change

862.73 887.22 855.68 861.48 -1.25 -0.14

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

63,807 - - 2,290.72 mn 10,007.08 mn 909.37

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

6.31 3.67 3.85 355.53 3.73 861.48

EFU Life Assurance 850 41.97 73.56 74.40 73.52 73.87 0.31 51595 86.95 58.61 - - - -

New Jub Life Insurance 627 28.54 42.82 44.50 42.31 42.53 -0.29 12201 49.31 39.95 - - - -

Paid up Last 60 days 2010 2011

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

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

BANKS

Performance of SR Banks Index

Open High Low Close Change % Change

1,184.74 1,201.26 1,177.98 1,189.88 5.13 0.43

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

26,750,228 - - 257,548.02 mn 720,683.08 mn 1,191.64

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

8.51 1.19 13.94 40.49 4.75 1,158.84

Allied Bank Limited 7821 6.97 71.82 72.80 71.50 71.75 -0.07 708497 72.99 50.80 20 - - -

Askari Bank 6427 8.27 17.34 17.50 17.25 17.37 0.03 363941 18.10 14.30 - - - -

Bank Alfalah 13492 14.38 11.18 11.52 11.15 11.22 0.04 3173546 11.52 8.33 - - - -

Bank AL-Habib 7322 8.02 37.45 37.74 37.10 37.23 -0.22 85602 37.74 31.44 - - - -

Bank Of Khyber 5004 5.49 4.11 4.40 4.10 4.12 0.01 9161 4.70 2.57 - - - -

Bank Of Punjab 5288 - 9.84 10.21 9.91 10.03 0.19 3331121 10.59 8.01 - - - -

Bankislami Pak 52801015.00 3.68 4.16 3.46 4.06 0.38 1229090 4.16 2.77 - - - -

Faysal Bank 7309 4.94 15.34 15.59 15.27 15.32 -0.02 306354 17.10 13.35 - 20B - -

Habib Bank Ltd 10019 7.81 124.93 125.89 123.75 124.98 0.05 773913 126.45 93.20 - - - -

Habib Metropolitan Bank 8732 8.73 28.00 29.10 28.10 28.56 0.56 144385 29.28 18.02 - - - -

JS Bank Ltd 8150 - 2.50 2.50 2.44 2.50 0.00 87831 3.00 2.25 - 66R - -

KASB Bank Ltd 9509 - 2.41 2.55 2.41 2.53 0.12 3105 2.90 2.16 - - - -

MCB Bank Ltd 7602 10.02 226.27 227.65 224.20 226.16 -0.11 1034935 232.00 189.50 55 - - -

Meezan Bank 6983 10.39 18.64 19.64 18.70 19.64 1.00 1320868 19.64 14.50 - - - -

Mybank Ltd 5304 - 2.69 2.80 2.70 2.79 0.10 23407 3.10 1.90 - - - -

National Bank 13455 6.76 76.66 77.98 76.60 77.42 0.76 5268112 77.98 62.83 - - - -

NIB Bank 40437 - 2.96 3.00 2.92 2.96 0.00 254273 3.18 2.53 - - - -

Samba Bank 14335 - 1.95 2.05 1.93 2.00 0.05 35845 2.65 1.51 -63.46R - -

Silkbank Ltd 26716 - 2.60 2.88 2.66 2.77 0.17 7258595 3.05 2.50 - - - -

Soneri Bank 6023 - 7.90 8.00 7.75 7.95 0.05 123493 8.48 5.60 - - - -

Stand Chart Bank 38716 13.09 8.50 8.70 8.41 8.51 0.01 8648 9.04 6.15 - - - -

Summit Bank Ltd 5000 - 3.68 3.83 3.63 3.81 0.13 94014 4.23 2.60 - - - -

United Bank Ltd 12242 7.82 65.99 66.80 66.15 66.53 0.54 1205505 70.65 51.56 10 - - -

Paid up Last 60 days 2010 2011

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

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

NON LIFE INSURANCE

Performance of SR Non Life Insurance Index

Open High Low Close Change % Change

777.95 790.56 776.41 782.13 4.18 0.54

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

1,339,895 - - 11,111.34 mn 48,400.36 mn 782.95

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

12.63 0.66 5.20 79.54 6.30 757.87

Adamjee Insurance 1237 25.43 86.52 88.50 87.20 87.73 1.21 719383 91.75 63.40 10 - - -

Paid up Last 60 days 2010 2011

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

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

GAS WATER AND MULTIUTILITIES

Performance of SR Gas Water and Multiutilities Index

Open High Low Close Change % Change

1,537.18 1,589.53 1,519.37 1,570.26 33.08 2.15

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

513,621 - - 12,202.80 mn 33,587.74 mn 1,570.26

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

9.75 1.11 11.41 66.79 6.85 1,486.21

Sui North Gas 5491 8.21 27.02 27.78 26.80 27.57 0.55 229011 34.75 25.71 20 - - -Sui South Gas 8390 3.31 21.51 22.33 21.21 21.99 0.48 284610 30.23 19.95 15 25B - -

Paid up Last 60 days 2010 2011

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

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

ELECTRICITY

Performance of SR Electricity Index

Open High Low Close Change % Change

1,323.38 1,345.53 1,314.25 1,327.32 3.94 0.30

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

14,733,802 - - 95,369.29 mn 109,169.98 mn 1,331.36

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

14.87 1.39 9.35 104.13 7.00 1,277.14

Genertech 198 - 0.89 0.93 0.88 0.89 0.00 181 1.45 0.60 - - - -

Hub Power 11572 6.96 37.97 38.25 37.80 37.98 0.01 993784 38.25 32.96 50 - - -

Japan Power 1560 - 1.71 1.79 1.70 1.75 0.04 125392 2.25 1.30 - - - -

KESC 7932 - 3.30 3.46 3.10 3.14 -0.16 4767486 3.55 2.00 - 7.8R - -

Kohinoor Energy 1695 11.56 20.71 20.95 20.81 20.81 0.10 589 25.25 17.95 15 - - -

Kohinoor Power 126 2.77 4.58 4.55 4.55 4.55 -0.03 340 5.69 4.01 - - - -

Kot Addu Power 8803 5.23 42.06 43.20 42.01 43.01 0.95 2080253 43.20 38.35 50 - - -

Nishat Chunian Power Ltd 3673 3.73 16.29 17.20 16.40 17.01 0.72 3896019 17.20 11.00 - - - -

Nishat Power Ltd 3541 28.03 17.01 17.75 17.01 17.38 0.37 2784531 17.75 11.90 - - - -

Sitara Energy Ltd 191 3.49 18.26 18.70 18.70 18.70 0.44 215 22.35 17.98 20 - - -

Southern Electric 1367 - 2.19 2.25 2.19 2.20 0.01 85001 2.80 2.05 - - - -

Paid up Last 60 days 2010 2011

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

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

FIXED LINE TELECOMMUNICATION

Performance of SR Fixed Line Telecommunication Index

Open High Low Close Change % Change

1,136.29 1,157.08 1,132.95 1,148.29 12.00 1.06

Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High

2,230,469 - - 50,077.79 mn 79,443.27 mn 1,150.11

P/E (x) P/BV (x) ROE (%) Payout (%) Div Yield (%) 5-Day Low

6.20 0.80 12.84 62.56 10.08 1,136.04

Pak Datacom 78 4.88 80.00 79.99 79.00 79.00 -1.00 3099 106.00 76.50 80 - - -Pakistan Telecomm Co A 37740 13.01 19.33 19.65 19.28 19.52 0.19 1157431 20.12 18.21 17.5 - - -Telecard 3000 0.65 2.16 2.27 2.15 2.19 0.03 372115 2.69 1.97 1 - - -WorldCall Tele 8606 - 2.61 2.69 2.60 2.68 0.07 697824 3.45 2.40 - - - -Wateen Telecom Ltd 6175 - 3.65 3.75 3.53 3.55 -0.10 168777 4.25 3.35 - - - -

Paid up Last 60 days 2010 2011

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

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

Ask Gen Insurance 204 6.65 10.75 11.00 10.55 10.98 0.23 31850 12.75 10.00 - 25R - -

Central Insurance XB 279 8.00 70.00 72.90 69.99 70.42 0.42 9043 72.90 47.51 10 10B - -

Century Insurance 457 7.30 11.33 11.99 11.40 11.68 0.35 178220 12.00 9.45 - - - -

EFU General Insurance 1250 - 43.09 43.60 43.05 43.19 0.10 17203 48.63 35.00 - - - -

Habib Insurance 400 3.48 14.67 15.00 14.61 14.62 -0.05 4503 15.39 10.04 - - - -

New Jub Insurance 791 15.64 58.50 58.38 56.50 58.03 -0.47 11450 60.90 52.75 - - - -

Pak Reinsurance 3000 41.79 16.32 16.50 16.25 16.30 -0.02 250598 17.20 13.10 - - - -

PICIC Ins Ltd 350 - 9.27 9.10 8.31 8.80 -0.47 30172 9.50 1.96 - - - -

Premier Insurance 303 6.65 11.73 12.50 11.80 12.30 0.57 77896 12.50 8.00 - - - -

Shaheen Insurance 200 - 13.42 13.35 12.60 13.30 -0.12 1307 14.53 11.65 - - - -

Silver Star Insurance 253 4.35 7.10 7.45 7.00 7.00 -0.10 4749 8.17 6.01 - - - -

United Insurance XB 400 2.30 7.00 7.00 7.00 7.00 0.00 3480 7.40 4.55 - - - -

UPTO 100 VOLUME

FIMM 59.10 61.19 61.19 61.19 2.09 100

TRSM 1.77 1.77 1.77 1.77 0.00 100

HUSS 11.00 10.80 10.80 10.80 -0.20 100

SASML 10.52 10.99 10.89 10.99 0.47 78

BIFO 56.11 53.37 53.31 53.31 -2.80 69

SAPL 143.00 144.99 140.60 143.50 0.50 58

GSPM 7.03 7.43 7.40 7.42 0.39 54

MODAM 1.31 1.49 1.31 1.33 0.02 53

IGIIL 94.24 95.49 93.99 94.00 -0.24 39

NESTLE 2446.01 2460.00 2336.00 2440.00 -6.01 38

GUTM 20.00 21.00 19.66 19.66 -0.34 34

BAFS 58.50 61.40 59.00 59.00 0.50 32

HWQS 21.00 21.80 21.00 21.00 0.00 30

JSGCL 27.96 28.71 28.63 28.63 0.67 28

AKDCL 47.35 48.81 46.67 48.81 1.46 28

FPJM 1.39 1.38 1.38 1.38 -0.01 25

CSUML 3.53 3.50 3.26 3.50 -0.03 22

FECS 46.93 48.99 44.59 48.99 2.06 21

ISTM 7.25 7.49 7.25 7.25 0.00 20

PAKMI 1.02 1.18 1.15 1.17 0.15 19

MFFL 80.76 84.79 82.00 82.00 1.24 17

BFMOD 3.26 3.26 3.26 3.26 0.00 15

TOWL 5.21 5.21 5.21 5.21 0.00 15

MLCFPS 5.80 5.89 4.81 4.81 -0.99 15

SCL 92.11 96.49 93.99 95.24 3.13 15

DIIL 13.88 14.84 12.88 13.82 -0.06 14

KOHS 3.41 4.41 4.00 4.37 0.96 13

MWMP 1.85 1.90 1.62 1.62 -0.23 13

ALICO 18.02 18.49 17.61 18.49 0.47 11

MDTL 48.86 46.42 46.42 46.42 -2.44 11

PRWM 14.27 14.85 14.00 14.85 0.58 10

AASM 38.60 40.00 38.99 38.99 0.39 10

IDEN 12.88 13.88 13.88 13.88 1.00 10

BAPL 8.55 8.97 8.75 8.75 0.20 10

SGML 6.00 6.80 5.28 6.06 0.06 8

KSTM 0.95 0.96 0.96 0.96 0.01 7

FIBLM 1.90 2.00 1.61 1.98 0.08 6

TSBL 1.75 2.74 2.74 2.74 0.99 6

SHTM 0.35 0.50 0.32 0.49 0.14 6

FFLM 1.40 1.41 1.41 1.41 0.01 5

GUSM 6.25 7.15 6.50 6.81 0.56 5

BAWS 5.48 5.59 4.60 5.59 0.11 3

HADC 0.70 0.78 0.61 0.70 0.00 3

FPRM 8.53 9.10 9.10 9.10 0.57 2

CLCPS 2.50 2.00 1.72 1.86 -0.64 2

HUSI 6.50 7.39 7.00 7.00 0.50 2

GATI 43.49 43.40 43.40 43.40 -0.09 2

RMPL 2125.39 2181.98 2032.01 2032.01 -93.38 2

PHDL 35.01 36.76 33.26 36.76 1.75 2

TSMF 1.38 1.40 1.34 1.34 -0.04 1

NMBL 1.60 1.79 1.79 1.79 0.19 1

ESBL 2.36 2.75 2.75 2.75 0.39 1

PKGI 7.50 7.40 7.12 7.40 -0.10 1

UVIC 3.70 3.82 3.82 3.82 0.12 1

BILF 1.40 1.60 1.60 1.60 0.20 1

CWSM 1.17 1.44 1.25 1.25 0.08 1

HMIM 0.72 1.10 1.05 1.05 0.33 1

IDRT 3.50 3.64 3.64 3.64 0.14 1

MUKT 0.51 0.84 0.57 0.57 0.06 1

SANE 5.44 6.00 5.70 5.70 0.26 1

SNAI 46.17 47.00 46.80 46.80 0.63 1

STML 22.60 23.73 23.73 23.73 1.13 1

TICL 69.68 66.20 66.20 66.20 -3.48 1

TSPL 1.05 1.10 1.00 1.00 -0.05 1

JOPP 9.66 8.70 8.70 8.70 -0.96 1

WYETH 1046.01 1096.00 1096.00 1096.00 49.99 1

CLOV 73.51 73.51 73.51 73.51 0.00 1

GAMON 1.53 2.26 2.19 2.19 0.66 1

AKGL 5.43 6.39 6.39 6.39 0.96 1

Symbols Open High Low Close Change Vol

FUTURE CONTRACTS

FFC-JAN 130.10 131.50 128.25 131.44 1.34 2153500

POL-JAN 308.22 322.45 308.15 319.52 11.30 1526000

DGKC-JAN 30.30 31.10 30.11 30.44 0.14 699500

FFBL-JAN 37.23 37.60 36.85 37.39 0.16 668500

NBP-JAN 77.14 78.40 77.00 77.92 0.78 651500

PPL-JAN 221.88 228.40 221.51 226.47 4.59 432000

NML-JAN 66.83 67.80 66.94 67.29 0.46 397500

PSO-JAN 296.43 300.00 294.66 297.09 0.66 316000

ENGRO-JAN 195.36 200.00 195.50 199.38 4.02 304000

ANL-JAN 9.50 9.75 9.54 9.57 0.07 174500

MCB-JAN 226.82 227.78 224.65 226.96 0.14 139000

BOP-JAN 9.99 10.30 9.95 10.10 0.11 99500

UBL-JAN 66.47 67.00 66.45 66.93 0.46 69000

AICL-JAN 87.17 88.90 87.80 88.05 0.88 47500

OGDC-JAN 171.66 180.24 172.50 178.45 6.79 41000

HUBC-JAN 38.42 39.90 37.61 38.76 0.34 30000

LUCK-JAN 76.00 76.50 75.22 75.50 -0.50 29500

PTC-JAN 19.40 19.51 19.50 19.50 0.10 25500

NCL-JAN 23.15 23.99 23.50 23.82 0.67 17000

NETSOL-JAN 19.48 20.30 20.00 20.20 0.72 9000

Symbols Open High Low Close Change Vol

ZERO VOLUME

AABS 94.79 94.75 94.75 94.75 -0.04 0.00

COTT 1.00 1.02 1.02 1.02 0.02 0.00

KHTC 31.20 32.76 32.76 32.76 1.56 0.00

KOHTM 1.05 1.06 1.06 1.06 0.01 0.00

LEUL 1.60 1.65 1.65 1.65 0.05 0.00

MQTM 8.43 8.50 8.50 8.50 0.07 0.00

MUBT 0.75 0.80 0.80 0.80 0.05 0.00

NATM 8.05 8.10 8.10 8.10 0.05 0.00

PASM 10.00 10.10 10.10 10.10 0.10 0.00

PSEL 168.00 167.99 167.99 167.99 -0.01 0.00

REWM 9.49 9.39 9.39 9.39 -0.10 0.00

SKRS 3.26 3.17 3.17 3.17 -0.09 0.00

Symbols Open High Low Close Change Vol

Al-Abbas Cement 53.94 3.25 3.05 3.50 3.60 3.35

Allied Bank Limited 72.87 71.25 70.70 72.55 73.30 72.00

Attock Cement 48.99 61.95 61.20 63.20 63.70 62.45

Arif Habib Corp 59.05 25.85 25.60 26.50 26.90 26.25

Arif Habib Limited 48.49 25.85 25.60 26.45 26.90 26.25

Adamjee Insurance 58.17 87.10 86.50 88.40 89.10 87.80

Askari Bank 57.13 17.25 17.10 17.50 17.60 17.35

Azgard Nine 39.15 9.45 9.35 9.70 9.85 9.60

Attock Petroleum 69.72 341.50 338.50 347.00 349.50 344.00

Attock Refinery 64.40 128.10 125.80 132.25 134.15 130.00

Bank Alfalah 61.19 11.10 10.95 11.45 11.65 11.30

Bankislami Pak 75.55 3.60 3.20 4.30 4.60 3.90

Bank.Of.Punjab 56.93 9.90 9.75 10.20 10.35 10.05

Dewan Cement 56.00 2.25 2.20 2.40 2.45 2.30

D.G.K.Cement 52.74 29.70 29.25 30.80 31.45 30.35

Dewan Salman 63.02 3.25 3.15 3.45 3.55 3.35

Dost Steels Ltd 36.60 2.50 2.40 2.75 2.90 2.65

EFU General Insurance 45.37 42.95 42.75 43.50 43.85 43.30

EFU Life Assurance 43.45 73.45 73.05 74.35 74.80 73.95

Engro Chemical 60.66 195.65 193.05 200.00 201.75 197.40

Faysal Bank 55.39 15.20 15.05 15.50 15.70 15.40

Fauji Cement 43.90 4.90 4.80 5.05 5.20 5.00

Fauji Fert Bin 62.22 36.75 36.30 37.55 37.95 37.15

Fauji Fertilizer 74.61 128.75 126.80 131.95 133.15 130.00

Habib Bank Ltd 67.55 123.85 122.75 126.00 127.00 124.85

Hub Power 65.41 37.75 37.55 38.20 38.45 38.00

ICI Pakistan 73.37 149.05 146.25 153.50 155.25 150.75

Indus Motors 55.03 255.50 253.75 258.50 259.75 256.75

J.O.V.and CO 52.65 3.85 3.70 4.25 4.50 4.10

Japan Power 52.33 1.70 1.65 1.80 1.85 1.75

JS Bank Ltd 43.07 2.45 2.40 2.55 2.60 2.50

Jah Siddiq Co 44.21 10.95 10.85 11.15 11.25 11.05

Kot Addu Power 75.13 42.30 41.55 43.45 43.95 42.75

K.E.S.C 64.99 3.00 2.85 3.35 3.60 3.25

Lotte Pakistan 72.92 14.60 14.45 14.80 14.90 14.70

Lucky Cement 48.79 74.55 74.00 75.85 76.60 75.30

MCB Bank Ltd 61.27 224.35 222.55 227.80 229.45 226.00

Maple Leaf Cement 45.65 2.75 2.70 2.95 3.05 2.90

National Bank 70.68 76.70 75.95 78.05 78.70 77.35

Nishat (Chunian) 60.58 23.50 23.25 23.95 24.25 23.75

Netsol Technologies 67.62 19.35 18.75 20.40 20.80 19.75

NIB Bank 52.50 2.90 2.85 3.00 3.05 2.95

Nimir Ind.Chemical 53.03 1.95 1.90 2.05 2.10 2.00

Nishat Mills 69.83 66.80 66.25 68.10 68.85 67.55

Oil & Gas Dev. XD 78.78 173.65 168.45 182.70 186.65 177.55

PACE (Pakistan) Ltd. 32.22 2.50 2.45 2.60 2.70 2.55

Pervez Ahmed Sec 40.74 2.00 1.90 2.10 2.20 2.05

P.I.A.C.(A) 59.04 2.40 2.35 2.55 2.60 2.50

Pioneer Cement 49.14 6.80 6.70 7.05 7.20 6.95

Pak Oilfields 77.43 309.95 301.35 324.55 330.50 315.90

Pak Petroleum 73.70 222.30 218.40 229.50 232.80 225.60

Pak Suzuki 55.33 70.75 69.50 74.00 76.00 72.75

P.S.O. XD 60.43 292.90 290.80 297.65 300.35 295.60

P.T.C.L.A 54.68 19.30 19.10 19.70 19.85 19.50

Shell Pakistan 56.97 205.80 204.50 208.50 210.00 207.25

Sui North Gas 49.62 27.00 26.40 27.95 28.35 27.40

Sitara Peroxide 49.39 13.15 13.00 13.50 13.65 13.35

Sui South Gas 53.73 21.35 20.70 22.45 22.95 21.85

Telecard 43.48 2.15 2.10 2.25 2.30 2.20

TRG Pakistan 29.65 3.35 3.30 3.50 3.60 3.45

United Bank Ltd 59.19 66.20 65.85 66.85 67.15 66.50

WorldCall Tele 43.80 2.65 2.55 2.70 2.75 2.65

Company RSI 1st 2nd 1st 2nd Pivot

(14-day) Support Resistance

TECHNICAL LEVELS

Mubarak Textile Mills Ltd 07-Jan 10.00

Quetta Textile Mills Ltd 07-Jan 11.00

Colony Sugar Mills Ltd 07-Jan 11.30

Sakrand Sugar Mills Ltd 07-Jan 4.00

BMA Chundrigar Road Savings Fund 07-Jan 11.30

J.K. Spinning Mills Ltd 08-Jan 10.00

Bawany Sugar Mills Ltd 08-Jan 10.00

Punjab Oil Mills Limited 08-Jan 11.00

Dandot Cement Company Ltd 08-Jan 4.30

Media Times Ltd 10-Jan 3.00

Tandlianwala Sugar Mills Ltd 10-Jan 5.00

Abdullah Shah Ghazi Sugar 10-Jan 4.00

Atlas Income Fund 11-Jan 2.15

Nadeem Textile Mills Ltd 11-Jan 5.00

Fauji Fertilizer Bin Qasim Ltd 25-Jan 10.30

Unilever Pakistan Limited 14-Feb 2.30

Kot Addu Power Company Ltd 16-Feb 12.30

Unilever Pakistan Foods Ltd 17-Feb 2.30

BOARD MEETINGS

Company Date Time

Page 8: The Financial Daily-Epaper-07-01-2011

CEO Habib Bank meets Chief Minister Sindh

Citibank’s Vikram namedin India fraud complaint

Friday, January 7, 2011 8

SINGAPORE: The flare-up inpolitical turmoil in Pakistanfollowing the assassination ofPresident Asif Ali Zardari's topaide Salman Taseer won't havean immediate impact on thenation's credit ratings, Moody'sInvestors Service said, but itwarned that prolonged politicalinstability and economic stag-nation could lead to a bankingcrisis.

"The prolonged stagnation ofPakistan's economic growth andthe high political risk will be thelarge risks for Pakistan over thenext 12 to 18 months," saidAninda Mitra, Vice Presidentand Senior Analyst at Moody'sSovereign Risk Group.

If the economic stagnationand political instability contin-ue, "it could either cause a sov-ereign debt restructuring or abanking crisis to occur inPakistan," Mitra told DowJones Newswires in a telephoneinterview.

"The staying of the govern-ment for implementing tougheconomic reforms is currentlyunder pressure," Mitra said.

Mitra said the Salman Taseerassassination was "sympto-matic of the high political riskin Pakistan" but wouldn'timpact the country's sovereigncredit ratings just yet.

"These kinds of events arealready factored into our B3rating. The event (assassina-tion) itself comes as a shock tothe political system but byitself, it doesn't raise the risk(of a downgrade)," Mitra said.

Pakistan, plagued with largebudget deficit approaching 6per cent of gross domesticproduct compared with 4.7 percent budgeted this year and along-running terrorist insurgency, has been dependent onforeign financial aid to keep itseconomy afloat.

But Pakistan's failure to tack-le its budget deficit by takingsteps to boost revenue and slashspending has frustrated the IMFas well as other foreign donors,including the World Bank andAsian Development Bank.

The US has also called onPakistan to push harder onreforms. -Agencies

Politic-illsmay plaguebank sector

ISLAMABAD: The AsianDevelopment Bank (ADB),International Finance Corp(IFC), Citibank, and MCBBank have announced theircompleting a landmark tradetransaction which will helpboost textile industry inPakistan.The four banks have provid-ed trade finance coverage ofup to 110 million euros forIbrahim Fibers Limited toimport state-of-the-artGerman machinery to pro-duce polyester staple fiberand polyester chips.The additional 650tonnes/day capacity madepossible by the transactionwill more than doubleIbrahim Fiber's polyesterproduction, already one ofPakistan's highest, to 1,250tonnes per day, said an ADBpress statement receivedhere.By providing guarantees thatcover the payment risk intrade transactions, ADB'sTrade Finance Programmeand IFC's Global TradeFinance Programme helpincrease trade finance andthe flow of goods to andfrom emerging market coun-

tries.For this transaction, IFCassumed 30 per cent of MCBBank's risk, and ADB 19 percent. Citibank managed thebalance against the originalletter of credit launched byMCB Bank."The cover arranged by IFC,ADB, and Citibank portraysthe high degree of confi-dence these leading globalfinancial institutions have inMCB," said Farooq A Khan,Head of Trade ProductsDivision at MCB Bank."Citi is proud to be a part ofthis transaction. Our wide-spread global network acrossmore than 100 countriesenables us to leverage thoserelationships to promote ourcommon agenda to supportand enhance private sectorinvestment in Pakistan," saidArif Usmani, Citibank'sPakistan Country Officer."ADB's Trade FinanceProgramme supports largevolumes of trade business inPakistan on its own," saidSteven Beck, Head of TradeFinance in ADB's PrivateSector OperationsDepartment."However, cooperating with

IFC, Citibank, and MCB waskey to closing this challeng-ing deal, a transaction thatwill support businesses andcreate jobs in Pakistan,"Beck added."By responding to the shift-ing needs of its partnerbanks, IFC's Global TradeFinance Programme is help-ing stimulate trade flow andcontributing to economicgrowth," said ScottStevenson, Senior Managerof IFC's Global TradeFinance Programme. "Theinnovative partnership ofthis transaction will helpstimulate one of the key sec-tors in Pakistan's economy."Last year, ADB's TradeFinance Programme support-ed over $600 million ofcross-border trade inPakistan. Over the past sixmonths, IFC has providedPakistani banks with $328million in trade finance guar-antees, a $125 millionincrease in guarantees com-pared to the same period lastyear. The trade financinghelps Pakistan increasecross-border trade, and bene-fits many important businesssectors. -Agencies

Quartet of banksweaves big deal

Mergerof Summit,

Atlas Banksturns official KARACHI: According to ahandout issu ed here fromJanuary 1, Summit Bank Ltd(formerly Arif Habib BankLtd) and Atlas Bank Ltd haveofficially merged and startedoperating as a single bankunder the name of SummitBank.

The statement added thatcompletion of the legal merg-er means that the two bankscan now make acceleratedprogress in integrating theiractivities. With effect fromthe merger date, they will beallowed to exchange andshare client information andcan start technical migrationof client data. The proposedmanagement appointments'previously announced alsoofficially took effect.

Hussain Lawai, Presidentand CEO of Summit Bank, inhis statement said, "1stJanuary onwards, the legalmerger is a reality. SummitBank and Atlas Bank amalga-mate to form a single entity. Ihave great admiration for thetireless efforts that we haveseen on a daily basis fromcolleagues and I am pleasedby the trust that clients havecontinued to place in us."

‘Rising govtspendingis deficit

intensive’Special Correspondent

ISLAMABAD: Government'sexpenses are consistently on therise and if this trend goes on itwill only lead to wider budgetdeficit. This was expressed byGovernor State Bank, ShahidHafeez Kardar while briefingSenate's Standing Committeeon Finance here. SenateStanding Committee meetingwas chaired by Senator AhmedAli Governor State Bank ofPakistan told the Committee ifgovernment expendituresremain on the higher side, thenfiscal deficit may reach 6 percent of the gross domestic prod-uct. Governor SBP informedthat during the current fiscalrevenues were increased by 7per cent whereas governmentexpenses rose by 9 per cent.Kardar added that governmenthas borrowed Rs374 billion forits expenses from the centralbank, whereas government bor-rowed additional Rs366 billionfor the purchase of commodi-ties and Rs368 billion extra forpublic sector entities. Governorcentral bank said that govern-ment was still paying a monthlysubsidy of Rs20 billion onpower while Rs29 billion annu-ally was being spent to keepurea prices under control.

Moody's sees next 12-18mth critical ADB, IFC, Citi, MCB undertake textile trade transaction

Interview by:

Shabbir Kazmi

Meezan Bank Ltd(MBL) has emergedas the tenth largest

bank in terms of branches. Itenjoys the distinction of beingthe first full-service Islamicbank of Pakistan. It hasemerged as a role model and itsefforts have been fullyacknowledged locally andinternationally. Its subsidiary,Al Meezan Investment has alsoattained the status of thelargest private sector assetmanagement company withRs25 billion assets under man-agement.

The Financial Daily spoke toAhmed Ali Siddiqui ExecutiveVice President ProductDevelopment and ShariahCompliance and & Secretary,Shariah Supervisory Board atMeezan Bank. Following arethe excerpts from an exclusive

interview.

Islamic VersusConventional BanksGlobally and locally Islamic

banking in one of the fastestgrowing segments of the bank-ing sector and without beingprejudiced towards conven-tional banks, it is evident thatduring difficult times globallyIslamic banks have performedbetter as compared to conven-tional banks mainly becauseeach transaction in Islamic

banking is backed by assetsand is designed to cater a realeconomic transaction. On topof this more prudent risk eval-uation and willingness to helpthe client avoiding a default indifficult times keeps the delin-quency rate low. Now Islamicbanking is also termed as 'ethi-cal banking' and many of thenon-Muslims are opting for itsimply because the way eachtransaction is structured.

Meezan BankOperations

Based on all the indicatorsused for the evaluation of per-formance of a bank, Meezanemerges distinguished. Itsdeposits and financing haveincreased significantly during2010. Its network now com-prises 222 branches in 63towns and cities. The enhancedoutreach allows Meezan tofocus on clients and thoseareas which have mostly

remained unexposed to Islamicbanking, despite having enor-mous latent demand.

Confidence FactorLet me share a fact with you

that the strength of Meezanrests on the commitment ofManagement toward the causeof Islamic banking and aworld-class research and prod-uct development team thatworks under the guidance ofour Shariah Advisor Dr ImranUsmani. The research unitcomprises people from all thedisciplines i.e. banking,

jurisprudence, Shariah knowl-edge, and accounting. One ofthe most read parts ofMeezan's annual accounts isShariah Advisor's report. It isvirtually used as test case.Each product structure is vet-ted for Shariah compliance andeach business financing case isreviewed thoroughly irrespec-tive of size. In case of anyambiguity the transaction iswithheld till the Shariah schol-ars are fully satisfied.

Human ResourceConstraint

Over the years it has beenfelt that one of the seriousconstraints in the prolifera-tion of Islamic banking isgrowing acute shortage ofeducated and experiencedmanpower. Over the yearsbusiness schools have beenimparting education aboutconventional banking andfinance but little has been

done for Islamic bankingtraining. Meezan Bank capi-talising on its inherentstrength has consented to sup-port all major educationalinstitutions in this regard. Wenot only help in developingthe curriculum for Islamicfinance but also provideappropriate instructors forgraduate and master levelcourse in Islamic Bankingand Finance. There is consen-sus on the fact that outreachof Islamic banking cannot beenhanced without human

resource development.

Asset & LiabilityProducts

Islamic banking is oftenalleged of baptising the con-ventional products, by simplygiving them an Arabic name. Itis mainly because of lack ofunderstanding. The productsmay look same because most ofcharacteristics may look simi-lar to a conventional productbut its process and structure isShariah compliant. This is dueto the fact that many of theproducts and benchmarks usedin conventional banking arebetter understood by the publicat large and also used for com-parison. Ironically, people stilltry to find the characteristics ofa conventional product inShariah compliant products.

EmergingSukuk Market

While the growth ofdeposits in Islamic banking is

on the rise, Islamic banks alsohave excess liquidity and arefacing the challenge to man-age it profitably. While invest-ment in Treasury Bills andPakistan Investment Bonds bythe conventional banks is verycommon, but Islamic bankshardly have access to similarShariah compliant products.The recent issuance of Sukukor Shariah compliant instru-ments has helped in soothingthe problem. The two latestSukuk issues by SBP amount-ing to Rs87 billion have pro-

vided long awaited alternativeto the Islamic banks. Theyield on these Sukuks is com-parable to the yield offered on6-month Treasury Bills. Theadded advantage is that thesize of assets under manage-ment of Islamic mutual fundshas also increased. AlMeezan, a fully owned sub-sidiary has become the largestprivate sector managed assetmanagement company.

Recent Defaultsof Sukuk

Recent default of few com-panies having issued Sukukcreated a doubt that there wassome inherent weakness in theway transactions were struc-tured. However, Shariah advi-sors strongly believe that itwas the mindset of the clientsthat created the havoc. In addi-tion to that, facing problems orliquidity crunch is far differentfrom the issuers' stubbornnessand their insistence on havingtheir payments restructured attheir own terms. Any companycan face delinquency due to achange in circumstances butrefusal to discharge contractu-al liability is not an apprecia-ble act. The experience maynot be very good but has cer-tainly taught a lesson to theplayers to be more carefulwhile undertaking futuretransactions.

Strength of EconomyPerformance of banks is

reflective of the state of theeconomy of a country. Sincerecession is a global phe-nomenon, Pakistan can't bean exception. However, itswoes are intensified becauseof hiking global prices onfood items and crude oil.Added to these are ongoingload shedding of electricityand gas, precarious law andorder landscape, and volatilepolitical situation.Operations of banking sectorremain robust when economyis flourishing, people'sincomes are stable, savingsare good, and above all newinvestments are made and jobopportunities created.However, the positive point

is many of the factors thathave plagued banking global-

ly (worst being subprimeloans) do not exist inPakistan.

Resolution for 2011Meezan has prepared a

multi-pronged strategy foryear 2011. The cornerstone ofthis plan is to further extendits out reach. By the end 2010number of its branches hasincreased to 222. During2011 Meezan aims at estab-lishing another 50 branches.This requires not only mas-sive investment in physicalinfrastructure but mostimportantly in humanresource development. Toenhance the number of appro-priately educated and trainedpeople Meezan has alreadyestablished links with presti-gious institutions includingIBA, LUMS, InternationalIslamic University and RiffahUniversity. It is a long-drawnprocess, requiring commit-ment, and real hard work.The encouraging part is allthe stakeholders particularlythe clients have becomekeener in adopting Shariahcompliant system, which

increases our responsibilityto provide them with the right

products.

BiddingFarewell to Riba

Bidding farewell to Ribashould be the top priority ofevery Muslim. It may be truethat the system cannot bechanged overnight but mak-ing the best effort is impera-tive for each Muslim. Now inPakistan Islamic banks, taka-ful operators and Islamicmutual funds are operative.The objective is to providean alternate or parallel sys-tem without disrupting theprevailing one. The realadvantage is that Pakistan isnot alone in this endeavor. Itis benefiting from the experi-ence of other countries.Pakistan also enjoys the sup-port of a very proactive cen-tral bank, which is operatingclosely with Shariah localscholars and internationalentities like IFSB, AAOIFI.In may not be wrong to saythat Pakistan has attained thestrength to play a more activerole in the proliferation ofIslamic financial systemamong the Muslim countries.

Meezan Bank: A Role Model

About Ahmed Ali SiddiquiAhmed Ali Siddiqui is Executive Vice President Product Development and Shariah Compliance and & Secretary,

Shariah Supervisory Board at Meezan Bank. His main areas of focus include managing product development ini-

tiatives, formulation of policy guidelines, Islamic banking training, Shariah audit & review of all Bank activities

along with the Shariah Advisor, and managing external product development advisory services. Siddiqui is also

actively involved in Islamic banking training activities and has conducted various training sessions, corporate

workshops/seminars on Islamic banking, and Islamic financial products for Meezan Bank both locally and

abroad. He is also a frequent speaker on Islamic banking at National Institute of Banking & Finance, State Bank

of Pakistan), TADP, Center of Islamic Economics (CIE), Karachi and IBA. He is also a member of Advisory team

for CIE, Jamia Darul Uloom Karachi and a visiting faculty member at Institute of Business Administration (IBA)

Karachi. Siddiqui holds a Bachelors and Masters degree in Business Administration from the IBA, Karachi with

six gold medals. His areas of specialisation include MIS & Islamic Finance. His previous assignments include

Car Ijarah and Islamic Housing Finance, where he served as Product Manager in both functions.

Exclusive interview with Ahmed Ali Siddiqui, EVP Product Development and Shariah Compliance MBL

The Bank Story Meezan Bank started operations 8 years ago with thevision to "Establish Islamic Banking as Banking of

First Choice" and to provide quality banking services ina Shariah-compliant manner to every citizen of

Pakistan at its doorstep. Today it ranks amongst the 10largest banks in Pakistan having achieved yet another

milestone by establishing a branch network of 222branches in 63 cities and towns across Pakistan within

a short span of 8 years. Meezan Bank received theaward for the 'Best Islamic Bank in Pakistan' by

Islamic Finance News of REDmoney Group, Malaysia.The Islamic Finance News Awards aims to commendkey industry players who have done their part in pro-

moting Islamic finance across the Asian region. MeezanBank has received a number of international and local

accolades for its services, including 'Best IslamicFinancial Institution in Pakistan' for 2010 and 2009 by

Global Finance Magazine, New York, 'Best IslamicBank in Pakistan' for 2009 by Asia Money Magazine,Hong Kong and 'Islamic Bank of the Year' for 2009

award by CFA Association of Pakistan.

Page 9: The Financial Daily-Epaper-07-01-2011

LONDON: Copper slipped onThursday as the dollar roseagainst the euro, but strong eco-nomic data from the UnitedStates indicating a bullish out-look for the world's largesteconomy helped support senti-ment.

Benchmark copper on theLondon Metal Exchange wasuntraded at the close, but bid at$9,470 a tonne compared with$9,540 at the close onWednesday. The metal used inpower and construction hit arecord high of $9,754 a tonne onTuesday.

Traders said copper was soldas the dollar moved higheragainst the euro in afternoontrade. Recent data from theUnited States, the world's sec-ond-largest copper consumerafter China, showed a surge inthe number of private sectorjobs, at a rate three times thelevel forecast.

"Good macro data are sup-porting metals. We are prettybullish across the board for allmetals. We expect copper willtouch the 10,000 level duringthis quarter," said David Wilson,analyst at Societe Generale.

However, undermining confi-dence in industrial metals mar-kets was talk of tighter monetarypolicy in the United States.

Copper prices jumped more

than 30 per cent last year andmore than 140 per cent in 2009.Since the middle of Novemberthe gain has exceeded 20 percent.

Prices have been boosted bystocks of copper in LondonMetal Exchange warehouse,which at 379,400 tonnes aredown more than 30 per centsince the middle of February.But since December 9 they haverisen by more than 8 per cent.

Overall, however, expecta-

tions of a copper market deficitthis year, albeit small, will helpbuoy prices, particularly formaterial to be delivered soonerrather than later.

LME lead stocks at 209,850tonnes are at their highest sinceSeptember 1995. Benchmarkprices of battery material leadare expected to be buoyed byworries about supplies fromAustralia.

Earlier lead jumped to$2,712.75 a tonne, its highestsince May 2008. It ended at$2,656 a tonne from $2,660 atonne on Wednesday, zincclosed at $2,455 a tonne from$2,463 and tin at $26,180 from$26,225.

Aluminium used in transportand packaging earlier touched$2,519 a tonne, its highest sinceSept 2008. It closed at $2,518 atonne from $2,463 and nickelended at $24,550 a tonne from$24,700 on Wednesday. -Reuters

Copper slips, but strongUS data comes to support

9Friday, January 7, 2011

POLYPROPYLENE(PP) LINEAR LOW (LL)

Cash & Settlement 1310 1250

December (3rd Wednesday) 1320 1260

January (3rd Wednesday) 1320 1260

LONDON METAL EXCHANGE (PLASTIC)

LME Official Prices, US$ per tonne for January 05 2011

LME Official Prices, US$ per tonne for January 05 2011

ALUMINIUM ALUMINIUM COPPER LEAD NICKEL TIN ZINC NASAAC

ALLOY

Cash buyer 2285 2444.5 9460 2568 24640 26090 2408 2315

Cash seller 2290 2445.5 9461 2569 24650 26095 2409 2325

3-months buyer 2245 2451 9434 2540 24700 26050 2414.5 2340

3-months seller 2250 2452 9434.5 2543 24730 26100 2415 2350

15-months buyer 2205 2508 9135 2475 24200 25550 2438 2365

15-months seller 2215 2513 9145 2480 24300 25600 2443 2375

27-months buyer 2205 2540 8690 2430 23400 2410 2420

27-months seller 2215 2545 8700 2435 23500 2415 2430

LONDON METAL EXCHANGE (METALS)

LONDON: Oil fell more thana dollar to below $89 a barrelafter US data showed more job-less claims than expected, rais-ing doubts about the strength ofeconomic recovery in theworld's biggest oil burner.

US crude for February wasdown $1.40 a barrel at $88.90 abarrel at 1509 GMT, while Brentfor February was 36 cents at$95.14. Both con-tracts weakenedafter a US govern-ment report saidUS initial weeklyjobless claims foru n e m p l o y m e n tbenefit had risen to409,000 last week,outpacing the consensus forecastfor 400,000.

The market might, however,be more influenced by Friday'sUS non-farm payroll data andany dips below $90 could bequickly reversed, traders andanalysts said, as they main-tained a bullish outlook for USfuel demand.

"We think tomorrow is goingto be supportive of ongoing

recovery and greater momen-tum in general in the econo-my," said Zach Pandl, an econ-omist at Nomura SecuritiesInternational in New York.

"Markets in our view arelooking for a very strong con-firmation of the labour marketrebound."

Expectations of economicrecovery and with it rising fuel

demand helped to drive oil to a27-month high of $92.58 onTuesday, but in volatile trade,prices fell to a low of $88.10on Wednesday.

Analysts said there could besome price distortion this weekas the big investment indexesrebalance their crude futuresweightings. "The rebalancingperiod is well flagged and assuch, some of the recent moves

in the market are likely toreflect the anticipated rebalanc-ing to some extent," said JamesZhang, an analyst at StandardBank Commodities Research.

Earlier on Thursday, Euro-zone consumer confidence andeconomic sentiment data painteda mixed picture, with the formerslipping back in December fromNovember's 35-month high,

whilst eco-nomic senti-ment spiked toa 38-monthhigh inDecember.

C o n c e r n sabout theE u r o - z o n e

have undermined the singleEuropean currency, but thedollar pared gains against theeuro following the larger-than-expected rise in the US joblessclaims.

Dollar-denominated com-modities become more or lessexpensive for non-dollar buy-ers depending on the relativestrength of the US currency. -Reuters

Crude oil flows below$89 after US jobless data

Europeanvegetable oil

pricesROTTERDAM: The follow-ing were the Thursday'sRotterdam vegetable oil price'sat 22:00 PST.

SOYOIL: EU degummedeuro tonne fob exmillFeb11/Apr11 1050.00,May11/Jul11 1055.00.

RAPEOIL: Dutch/EU eurotonne fob exmill Feb11/Apr111105.00-5.00, May11/Jul111090.00+0.00, Aug11/Oct111015.00+0.00, Nov11/Jan121020.00+0.00, Feb12/Apr121025.00.

SUNOIL: EU dlrs tonneextank six ports optionFeb11/Mar11 1510.00+10.00,Apr11/Jun11 1470.00+10.00,Jul11/Sep11 1500.00+10.00,Oct11/Dec11 1400.00+10.00.

LINOIL: Any origin dlrstonne extank RotterdamJan11/Feb11 1355.00-7.50.

CRUDE PALM OIL:Sumatra/Malaysia slrs optiondlrs tonne cif R'dam Jan111295.00+0.00, Feb111300.00+10.00, Mar111290.00+5.00, Apr11/Jun111270.00+10.00, Jul11/Sep111255.00.

PALM OLEIN: RBD dlrstonne fob Malaysia Feb111275.00, Mar11 1275.00+5.00,Apr11/Jun11 1262.50+2.50,Jul11/Sep11 1245.00+5.00,Oct11/Dec11 1230.00+0.00.

PALM STEARIN: Dlrs tonnefob Malaysia Jan111235.00+5.00, Feb111235.00+5.00.

COCONUT OIL: Phil/Indondlrs tonne cif RotterdamJan11/Feb11 1900.00,Feb11/Mar11 1890.00+30.00,Mar11/Apr11 1880.00+20.00,Apr11/May11 1870.00.

CASTOROIL: Any origindlrs tonne extank RotterdamFeb11/Mar11 1995.00+0.00. -Reuters

National Commodity Exchange Ltd Trading SummaryDate Commodity Contract Price Open High Low Close Traded Volume Previous Current Open Interest

Date Quotation in lots Settlement Settlement in Lots

Price Price

6-Jan-2011 CRUDE100 FE11 US$ Per Barrel 88.41 90.86 88.17 90.01 293 90.26 90.01 74

6-Jan-2011 CRUDE100 MA11 US$ Per Barrel 89.43 91.70 89.19 91.22 122 91.42 91.22 26

6-Jan-2011 CRUDE100 AP11 US$ Per Barrel 90.07 92.31 90.07 92.31 - 92.44 92.31 3

6-Jan-2011 SILVER - SL500 MA11 US$ Per Troy Ounce 29.25 29.56 28.60 29.03 335 29.39 29.03 115

6-Jan-2011 SILVER - SL500 AP11 US$ Per Troy Ounce 29.26 29.26 29.05 29.05 - 29.41 29.05 -

6-Jan-2011 GOLD 01oz FE11 US$ Per Troy Ounce 1377.00 1379.60 1364.80 1369.90 1,903 1375.50 1369.90 1,192

6-Jan-2011 GOLD 01oz MA11 US$ Per Troy Ounce 1378.00 1380.70 1366.00 1370.80 1,969 1376.40 1370.80 1,685

6-Jan-2011 GOLD 01oz AP11 US$ Per Troy Ounce 1379.50 1382.00 1366.90 1371.70 1,475 1377.40 1371.70 1,078

6-Jan-2011 GOLD 100oz FE11 US$ Per Troy Ounce 1377.40 1378.00 1365.00 1369.90 28 1375.50 1369.90 11

6-Jan-2011 GOLD 100oz MA11 US$ Per Troy Ounce 1378.40 1378.40 1370.80 1370.80 - 1376.40 1370.80 -

6-Jan-2011 GOLD 100oz AP11 US$ Per Troy Ounce 1379.40 1379.40 1370.80 1370.80 - 1377.40 1371.70 -

6-Jan-2011 GOLD JA11 Per 10 grms 37975.00 38042.00 37799.00 37851.00 3 37975.00 37851.00 31

6-Jan-2011 GOLD FE11 Per 10 grms 37900.00 38051.00 37689.00 37860.00 6 37984.00 37860.00 15

6-Jan-2011 GOLD MA11 Per 10 grms 38065.00 38065.00 37874.00 37874.00 - 37999.00 37874.00 1

6-Jan-2011 KILOGOLD JA11 Per 10 grms 37697.00 38014.00 37697.00 37823.00 3 37947.00 37823.00 2

6-Jan-2011 KILOGOLD FE11 Per 10 grms 38023.00 38023.00 37832.00 37832.00 - 37956.00 37832.00 -

6-Jan-2011 TOLAGOLD50 JA11 Per Tola 44339.00 44339.00 44116.00 44116.00 - 44261.00 44116.00 -

6-Jan-2011 TOLAGOLD100 JA11 Per Tola 44339.00 44339.00 44116.00 44116.00 - 44261.00 44116.00 -

6-Jan-2011 MINIGOLD MON Per 10 grms 39103.00 39103.00 38896.00 38896.00 - 39022.00 38896.00 -

6-Jan-2011 MINIGOLD TUE Per 10 grms 39146.00 39146.00 38939.00 38939.00 - 39064.00 38939.00 -

6-Jan-2011 MINIGOLD WED Per 10 grms 39160.00 39160.00 38953.00 38953.00 - 39078.00 38953.00 -

6-Jan-2011 MINIGOLD THU Per 10 grms 39075.00 39075.00 38967.00 38967.00 - 39093.00 38967.00 -

6-Jan-2011 MINIGOLD FRI Per 10 grms 39089.00 39089.00 38882.00 38882.00 - 39008.00 38882.00 -

6-Jan-2011 TOLAGOLD MON Per Tola 45239.00 45326.00 44702.00 44702.00 9 44849.00 44702.00 8

6-Jan-2011 TOLAGOLD TUE Per Tola 45267.00 45306.00 44750.00 44750.00 3 44897.00 44750.00 2

6-Jan-2011 TOLAGOLD WED Per Tola 45397.00 45397.00 44767.00 44767.00 24 44914.00 44767.00 6

6-Jan-2011 TOLAGOLD THU Per Tola 45306.00 45306.00 44783.00 44783.00 10 44930.00 44783.00 10

6-Jan-2011 TOLAGOLD FRI Per Tola 45286.00 45286.00 44686.00 44686.00 5 44832.00 44686.00 12

6-Jan-2011 IRRI6W 06JA11 Per 100 kg 3426.00 3426.00 3380.00 3380.00 - 3426.00 3380.00 -

6-Jan-2011 RICEIRRI - 6 JA11 Per 100 kg 3440.00 3440.00 3393.00 3393.00 - 3440.00 3393.00 -

6-Jan-2011 RBD PALMOLEIN JA11 Per Maund 5323.00 5371.00 5323.00 5371.00 - 5323.00 5371.00 -

6-Jan-2011 KIBOR3M 11-Mar Per Rs. 100 86.22 86.22 86.21 86.21 - 86.22 86.21 -

6-Jan-2011 KIBOR3M 11-Jun Per Rs. 100 85.32 85.32 85.32 85.32 - 85.32 85.32 -

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

India sugarextendslosses

MUMBAI: Indian sugar pricesfell for a third straight day onThursday, hammered by weakdemand and higher supplies,dealers said.

"Stockists and big companieswere not active in the market.For the past few days demandwas very weak," said Ashok Jain,president, Bombay SugarMerchants Association (BSMA).

In Kolhapur, a key market intop-producing Maharashtrastate, the most traded S-varietyeased 0.18 per cent to 2,811rupees ($62.12) per 100 kg.

The most-traded M gradesugar contract for Januarydelivery on India's NationalCommodity and DerivativesExchange (NCDEX) ended0.96 per cent lower at 2,897rupees per 100 kg, after hittinga contract low of 2,881 rupeesearlier in the day.

India has made available 1.7million tonnes of non-levy sugarfor January, higher than 1.5 mil-lion tonnes it had released forDecember, the government saidin a statement last month. Sugaroutput in India's top producingMaharashtra state rose by 10.9per cent to 2.45 million tonnes inthe first three months of 2010/11season that began on Oct.1, agovernment official told Reuterson Monday. -Reuters

JIANGXI - CHINA: A worker waters the site of a rare earth metals mine

at Nancheng county, Jiangxi province in China. -Reuters

LONDON: Gold prices fellfor a fourth successive sessionon Thursday, under pressurefrom investors taking heartfrom the strength of the dollarfollowing a string of data thatsuggested the US economywas gaining traction.

Spot gold was bid at$1,372.74 an ounce at 1415GMT, against $1,377.65 latein New York on Wednesday.US gold futures for February

delivery were flat at$1,373.00.

A string of robust US datahave driven the dollar higheron expectations the UnitedStates may recover faster thanother major economies. Thenumbers have raised expecta-tions that Friday's key jobsdata will be positive.

A larger-than-expected risein weekly initial jobless claimson Thursday did little to dispelthis notion, putting gold underpressure against the dollar andundermining its appeal as ashelter from risk.

"Really, what's behind thiscorrection is probably thestronger US economic data,"

said Mitsubishi analystMatthew Turner. "There isalways the fear that once therebound in the US getscemented and attracts higherinterest rates, investors startshifting money out of gold andinto equities."

"This fear that governmentdebt and deficits will requireloose monetary policy for alonger time was the drivingforce behind gold's rally and

that hasn't changed," he said.From a technical perspec-

tive, gold's correction from therecord high it hit in Decemberis seen as potentially healthy.

Investment demand for gold-backed exchange-traded fundsremained lacklustre, with hold-ings of the world's largest goldETF, New York's SPDR GoldTrust, dropping by nearly 4tonnes on Wednesday to theirlowest in early June.

Among other precious met-als, silver was at $29.30 anounce against $29.24, plat-inum was at $1,729.24 anounce versus $1,726.50 andpalladium at $763.72 against$773. -Reuters

Gold loses shinefor fourth session

Arabicas up,near 13-1/2-yrpeak; cocoa

remains firmLONDON: Coffee futuresprices rose on Thursday, witharabicas less than 10 cents awayfrom a fresh 13-1/2 year peak,as the market remained under-pinned by a shortage of highquality washed arabica beans.

Cocoa futures edged up, sup-ported by a risk premium stem-ming from the disputed electionin the world's top producer,Ivory Coast, on Nov. 28, whilesugar fell further from lastmonth's 30-year high, with thedownside limited by tight sup-plies.

ICE March arabicas were up1.95 cents or 0.8 per cent at$2.3495 a lb at 1526 GMT.

London March robustas wereup $27 or 1.4 per cent at $2,032per tonne in slim volume of4,316 lots.

Cocoa futures edged higher inlight volumes as dealers saidexports continued apace fromtop producer Ivory Coast, wherethe disputed presidential votehas sparked fears of disruptionto supplies.

ICE March cocoa traded up$1 or 0.04 per cent at $2,853 atonne in modest turnover of3,917 lots at 1527 GMT.

London second-month cocoawas up 6 pounds or 0.3 per centto 1,948 pounds per tonne inthin volume of 1,159 lots.

ICE raw sugar futures extend-ed losses as the dollar strength-ened, in a technical correction toa sharp rise the previous ses-sion, amid choppy trading incommodity markets at the startof the New Year.

Trade on the physical marketremained slow due to the histor-ically high prices, with rawsugar remaining near last week's30-year peak of 34.77 cents a lb.

ICE March raw sugar wasdown 0.99 cent or 3 per cent at31.21 cents a lb at 1528 GMT.London March white sugar wasdown $17.40 or 2.2 per cent at$758.50 per tonne in lightturnover of 1,549 lots.

Dealers are focused on howmuch sugar India can exportduring the period before thenext Brazilian crop aroundApril.

"Overall, we continue to bemore friendly to the flat price inthe medium term and wouldsuggest considering playing themarket from the long side ondips," said Thomas Kujawa ofbroker Sucden Financial. -Reuters

KUALA LUMPUR: Malaysiancrude palm oil recovered onThursday, driven by erraticweather slowing production inmajor vegetable oil exportingregions at a time of growing glob-al demand.

Palm oil prices were also sup-ported by the rally in other agri-culture markets on Wednesdaythat stoked fears of rising foodprices. The United Nation's foodagency said food prices hit arecord high last month, outstrip-ping levels that triggered riots in2008.

Palm oil clawed back most ofits day-ago losses despite a firmerdollar, as rains continued topound estates in Indonesia andMalaysia, stalling harvesting andtightening supplies.

The benchmark March 2011crude palm oil contract on BursaMalaysia Derivatives rose 1.5 percent to trade at 3,864 ringgit($1,259.452) per tonne.

Traded volumes rose to 20,333lots of 25 tonnes each, comparedto the usual 15,000 lots.

A Reuters poll showed thatMalaysian palm oil stocks fell to afive-month low on laggard pro-duction and still-resilient demand.US soyoil for January deliveryrose 0.7 per cent in Asian tradehours, extending gains in the pre-vious session as tight supplies,signs of further economic recov-ery and strong Chinese demandboosted sentiment. The mostactive Sept 2011 soyoil on China'sDalian Commodity Exchangerose 2.6 per cent. -Reuters

Palm oil bounceson erratic weather

NEW YORK: Fund buyingand system trades lifted UScotton futures on Wednesday,but late selling pulled pricesoff their highs as indexesrebalanced cotton holdings toalign with new weightings for2011 and some speculatorsgrabbed profits.

Cotton showed modest loss-es in early business, thenturned sharply higher aroundmidday as the commoditiescomplex suddenly reversedcourse and rallied.

Market players said theythought algorithmic trading, orquickly executed programmedtrades, were behind the suddenprice gains, both on Tuesdayand Wednesday.

Benchmark March cotton onICE Futures US closed with a1.42-cent gain, up 0.99 percent, at $1.4520 per lb. Thecontract neared its four-centdaily move limit to set a one-week peak at $1.4778 butquickly eased back.

Volume was 9,892 for theMarch contract, exceeding the8,818 contracts traded onTuesday. Tuesday's total countalso rose to 17,759 lots, an

increase over the 12,176 lotslogged on Monday, accordingto ICE data.

ICE also posted open inter-est for Tuesday at 207,895during a price rally, higherthan Monday's 207,460 total.

May cotton ended with 2.22cent, or 1.61 per cent, gains at$1.4011 per lb, on light vol-ume of 2,209 lots.

Mike Stevens, an independ-ent cotton analyst inMandeville, Louisiana notedthat, 'Order flow has beenpushing prices well beyondwhat has been traditionalmovement during a session.'

He added, however, that,'Conventional analysis wouldhave taken last week's sell sig-nals, weakness in theMarch/May spread and rebal-ancing by long-only indexfunds to a test of at least the$1.35 area, minimum.'

Global cotton supply con-cerns continue to keep a bidunder prices, however, withfloods in Australia and dryconditions in Texas growingregions among concernsunderpinning prices. -Reuters

US cotton up,off 1-wk high

Tokyo rubber

busts record

on oil, USDBANGKOK: Tokyo rubberfutures rose for a second con-secutive day to a new recordhigh on Thursday on the strongUS dollar and rising oil prices,dealers said.

The benchmark rubber con-tract on the Tokyo CommodityExchange for June deliveryrose 12 yen, or 2.8 per cent, tosettle at 440.2 yen ($5.29) perkg. It rose to an intraday highof 440.5 yen, the highest ever

"TOCOM prices have brokena new record above the keyresistance of 440 yen, meaningthat it's possible for prices torise further again on Friday,"one dealer said

Oil held above $90 onThursday as upbeat private USpayroll data helped marketsrecover from a midweek slumpon expectation for a sustainedeconomic recovery in theworld's top crude-consumingnation.

The dollar held steady againstthe yen and the euro onThursday, maintainingovernight gains. It couldstrengthen more after strongprivate employment data boost-ed sentiment ahead of Friday'sUS payroll numbers -Reuters

Shanghai copper risesShanghai's third month

copper contract rose 1.2 per

cent to 71,610 yuan, having

touched a 43-month high of

72,460 yuan on Tuesday.

Market focus still on Friday's US payroll report

Page 10: The Financial Daily-Epaper-07-01-2011

10Friday, January 7, 2011

Germany's Greis shoots during men's practicesession at Biathlon World Cup in Oberhof

Collingwoodretires fromTest cricket

LONDON: England batsmenPaul Collingwood hasannounced his retirement fromTest cricket following the cur-rent 5th and final Ashes Test inSydney.

Collingwood, who has repre-sented England at Test level on68 occasions, will continue asEngland's Twenty20 captainand as a member of England'sODI squad, says a ECBannouncement. He ledEngland to victory in theWorld T20 Cup in the WestIndies last year.

In a statement Collingwoodsaid: "Representing England atTest level has always been adream of mine and I've beenfortunate enough to haveenjoyed some amazing highsthroughout my Test career.

"I'm proud of the fact thatI've always given my all forthe England Test team but Ifeel that this is the right time toleave Test cricket havingreached some very specialachievements, none more sat-isfying that retaining the Ashesin Australia.

"I also feel now is the time toensure some of the youngerplayers are given an opportuni-ty at Test level as we have awealth of talent pushing forplaces in the England Testteam.

"Clearly I still feel I have ahuge amount to offer Englandin terms of limited overs crick-et and I'm looking forward tothe opportunity to continueleading the Twenty20 squadand playing a significant rolein England's ODI team."

Collingwood, 34, made hisTest debut in 2003 against SriLanka at Galle and has goneon to earn 68 caps. With thepotential of one inningsremaining in Sydney he has4259 runs but has struggledduring the Ashes with just 83runs in six innings.-APP

Englandout for 644,lead Aussie

by 364SYDNEY: England weredismissed for 644 to hold a364-run innings lead overAustralia after lunch on thefourth day of the finalAshes Test at the SydneyCricket Ground onThursday.

It was England's highesttotal in Australia andeclipsed the previous high-est score of 636 at the SCG,set back in 1928-29.

It took Australia's bowlers177.5 overs and 758 min-utes to finally dislodgeEngland, who had threecenturions -- Alastair Cook(189), Matt Prior (118) andIan Bell (115).

Australia have the oner-ous task of batting out theremaining five sessions toprevent their third defeat ofthe series, with England,leading 2-1, closing in onwinning their first seriesDown Under in 24 years.-APP

KARACHI: Salman Butt'sfall from grace came justwhen Pakistan believed thenew captain and stylishopener could lead theembattled team for years tocome.

Handed the captaincyafter Shahid Afridi quit fol-lowing a one-sided defeatagainst Australia at Lord'sin July, the 26-year-old Butttook little time in changingthe fortunes of the team.

Pakistan defeatedAustralia in the very nextmatch by four wickets atLeeds - their first win overTest cricket's best team for15 years - and hopes of anew era were high.

But those hopes wereshort-lived as a month laterseveral Pakistani players,including Butt, were namedin an alleged spot-fixingscandal.

Britain's News of the

World claimed that sevenPakistani players, includingButt, Mohammad Aamerand Mohammad Asif, tookmoney from MazharMajeed to obey orders atspecific stages in the Lord'sTest against England.

Scotland Yard detectivesraided the team hotel,reportedly confiscating ahuge amount of money fromButt's room.

The International CricketCouncil provisionally sus-pended the players. Formany in the game Salman'salleged involvement cameas a shock, but not for thosewho knew of his love forexpensive watches and lux-ury cars.

Salman's brilliant match-winning hundred in a one-day match against India atCalcutta in late 2004 set hiscareer on the right track.-Online

Butt's rapid fall from grace at worst time

ISLAMABAD: Pakistan ten-pin bowling team will partici-pate in 21st Asian TenpinBowling Championship sched-uled to be held at Kalifa Club,Abu Dhabi's from January 14.

Besides Pakistan, otherteams participating in the eventare China, Egypt, Hong Kong,Iran, Malaysia, Qatar,Singapore, Thailand, UAE,India and Indonesia.

President Pakistan TenpinBowling Federation and

Minister of Food KhyberPakhtunkhwa MuhammadShuja Khan told APP thatnational team of Pakistan com-prises Saleem Baig, Ijaz-ur-Rehman, Khalid Saeed Butt,Muhammad Hussain, SultanDurrani, Faisal Rizvi and Umar.Ijaz Uddin Sheikh will accom-pany the team as manager.

He said, "Players of thenational team are very excitedand will earn good name bygiving their best in the event."

He further said that differentcountries will participate in tour-naments to be organised byTenpin Bowling Federation in2011 and the tournaments sched-ule of in Pakistan for February,this year. "Because of PakistanTenpin Bowling Federationefforts, the name of Pakistan hasappeared in the game of bowlingand very soon the game of bowl-ing will make its place in Pakistanlike other games such as Cricketand Hockey," he said.-APP

Pakistan to take partin Asian tenpin bowling

KARACHI: One of the sur-prises in Pakistan's prelimi-nary 30-man World Cup squadwas the absence of batsmanFawad Alam, whose omissionhas been attributed to his lackof form by chairman of selec-tors Mohsin Khan.

"We simply could not find aplace for Fawad in the squadand that was down to him notbeing in the sort of form need-ed in a tournament like theWorld Cup," Mohsin toldPakpassion.net.

Alam scored two half-cen-turies in his previous eightone-day innings, but he alsohas four single-digit scores,including his last two knocksagainst South Africa in Dubaitwo months ago.

Pakistan had announcedtheir squad on Tuesday, a dayahead of the ICC's extendeddeadline for naming the 30.Shoaib Malik, the former cap-tain, and legspinner DanishKaneria have also been left outof the probables. Kamran

Akmal, the wicketkeeper whohas been out of favour over thepast few months, has beenincluded.

The PCB hasn't said so pub-licly but the trio have beenunder suspicion in the after-math of the spot-fixing scan-dal that has rocked Pakistan'scricket. Akmal was the sub-ject of an ACSU notice earli-er this year but has sinceasked for and received a writ-ten clearance from the ICC.-Online

League 2011 Fawad Alamleft out due to poor form

Monitoring Desk

KARACHI: Pakistan‘sselectors came underscathing attack from formerplayers and media Thursdayover the selection of aWorld Cup squad, sayingkey talent had been left outof the team.

Wicket-keeper batsmanKamran Akmal was namedin the preliminary squadafter getting clearance fromthe Pakistan Cricket Board,but former captain ShoaibMalik and leg-spinnerDanish Kaneria were not.

Also missing from theearly list of probables wasFawad Alam, which formerspinner Iqbal Qasim saidwas a bad move.

“There are two parts of theWorld Cup announcement,the first 30 players and thenthe final 15, and I think theselectors concentrated onthe final squad and did notcare for the 30, which is

wrong,” Qasim told AFP.“I think Alam should have

been in the initial squad,while young all-rounderHammad Azam brought as afuture prospect is nowhere,”said Qasim, who resigned aschief selector afterPakistan’s disastrous tour ofAustralia last year.

Alam scored 337 runs inhis last 11 matches with anaverage of 37.66.

Pakistan have untilJanuary 19 to announce thefinal 15 for the tournamentto be hosted jointly byIndia, Sri Lanka andBangladesh from February19-April 2.

The English-languagedaily Dawn was also criti-cal, lashing out at Alam’somission.

“The exclusion of utilityplayer Alam is jarring. Hehas shown the talent to atleast be on this preliminarylist,” said the newspaper inits editorial.

“The PCB (PakistanCricket Board) obviouslyanticipated such queries,and chief selector MohsinKhan chose not to face themedia… Instead, the mediawas fed a press release,” thenewspaper said.

According to the averagesof the domestic matches,top bowlers like SadafHussain (64 wickets),Abdur Rauf (63) andMohammad Khalil (61)were overlooked while AsadAli (56) was included in thesquad.

National Urdu-languagedaily Jang blamed selectors fortrying to replace limited overcaptain Shahid Afridi with theageing Misbah-ul-Haq.

“There is a lobby workingto replace Afridi as captainand some selectors arebehind that campaign and inselecting the probables forthe World Cup Afridi’sopinion was also not taken,”wrote the newspaper.

Pak's WorldCup selectionflapped down

PFF-KESC LFL 2011

PFFannounces

draws LAHORE: Pakistan FootballFederation (PFF) hadannounced draws for the 32-matches of PFF-KESC LyariFootball League 2011. Theevent will be comprized of 32matches, having 24 league andeight elmination encounters.PFF has engaged in a partner-ship with the sponsors KarachiElectric Supply Company(KESC) to organize uniqueage-limit Lyari FootballLeague, first of its kind for U15kids, from 8-24 January 2011at two Lyari Town's venues.

Lyari Town is one of theeighteen constituent towns ofthe city of Karachi. It is thesmallest town by area in the citybut also the most densely popu-lated town. It is bordered by thetowns of SITE Town to thenorth across the Lyari River,Jamshed and Saddar to the east,and Kiamari to the west acrossthe main harbor of Karachi.

Lyari is known as a footballhotbed in Pakistan. Many ofthe nation's top players comefrom the area. Football is sopopular that unhealthy activi-ties dip significantly duringthe FIFA World Cup season.The eleven Union Councils ofLyari Town namely UC-01(Agra Taj), UC-02(Daryabad), UC-03(Nayabad) UC-04 (Khada),UC-05 (Baghdadi), UC-06(Kalri), UC-07 (BiharColony), UC-8 (Rangiwara),UC-09 (Singolane), UC-10(Kalakot) and UC-11(Nawalane) - will show theirmettle with Lyari Town andfive outstation outfits Hub,Winder Gaddani, Uthal andBela in 17-day show.-Online

WELLINGTON: CricketAustralia face mammoth taskto save fifth test Test series justan entree for one-dayersCollingwood to retire fromtests after Ashes Catch thatwasn't sparks Botham outburstButt, Amir, Asif face lengthybans 2006 match voted great-est ODI ever Australia's testcricket cupboard bare - HarveyHeat, humidity test SeddonPark groundsman Ajmal tomiss first test against BlackCaps Mark Gillespie on wayback from injury Such is theseemingly all-consuming focuson the one-day World Cup, thetest series between NewZealand and Pakistan threatensto be little more than an entreeahead of the standard maincourse diet of limited overscricket the remainder of thesummer promises.

Three tests became two so asixth one-day internationalbetween the two teams couldbe squeezed in as all roads leadto the subcontinent-hosted

World Cup from late-Februaryto early-April, according to anewspaper Dominion Post.

The upshot leaves NewZealand cricket followers just10 days - weather and battingcapabilities permitting - tosavour the purest form of thegame, starting with the firstday of the first test here atSeddon Park tomorrow.

But any notion the players'minds would not be on the joband instead wandering towardthe World Cup was todayquickly shut down by NewZealand captain Daniel Vettori.

"I think the nature of cricketthese days is that you changefrom format to format, andgood players make sure theycan switch and that's what wehave to do," he said, addingthat New Zealand's gameplanwould be simple.

"We competed in Indiabecause we scored big firstinnings runs and were able tostay in the game, so that's ourfirst goal and bring as much

penetration as we can with theball."

The test series shapes as anintriguing one between twoteams with their own issues butwho have enjoyed some mod-erate success recently in thelonger form of the game.

Pakistan drew a two-testseries 0-0 with powerhouseSouth Africa in the UnitedArab Emirates in November,while in the same month NewZealand earned worthy drawsin two tests touring world No 1India before capitulating in thethird match.

But as their rankings of sixth(Pakistan) and eighth (NewZealand) suggest, all is notwell.

Pakistan have brought acompletely different squad tothe one which drew a three-match series 1-1 here last sum-mer, due in no small part tospot-fixing allegations whichplagued them in 2010.

Not present are openerSalman Butt and frontline

bowlers Mohammad Asif andMohammad Aamer, the triofacing a six-day IndependentAnti-Corruption Tribunal hear-ing starting in Doha, Qatar,tonight as the spot-fixing scan-dal nears a resolution. The triohave been charged withoffences relating to allegedactivity in a test againstEngland at Lord's in Augustand what impact the hearinghas on Pakistan's performancein the coming days remains tobe seen.

Asif and Aamer are missed,Asif in particular with the pacebowler consistently among thewickets here last summer onpitches that suited him to a tee.

Also missing are wicket-keeper Kamran Akmal andbatsman Mohammad Yousuf,once the best in the world, whowere surprisingly left out ofthe touring party. And if thelineup that played their lasttest, against South Africa inNovember, is any indication,talented and fearless young

batsman Umar Akmal, whoscored a test century on debutat Dunedin last summer, willnot even make the 11.

Much will hinge on captainMisbah-ul-Haq, Pakistan'sfourth leader in the past year,veteran Younis Khan and in-form Azhar Ali to score thebulk of the runs, while UmarGul and left-armer Wahab Riazwill spearhead the attack, pos-sibly with unorthodox left-armer Sohail Tanvir, whobowls off the wrong foot, asthe third seamer, though TanvirAhmed took claimed a six-wicket bag on debut againstSouth Africa.

Abdur Rehman is the onlyspin option after offspinnerSaeed Ajmal returned homefollowing the sudden death ofhis father on Tuesday.

New Zealand, under newcoach John Wright, needs tofind greater consistency at testlevel, particularly with the bat.Wright has made it clear heexpects the talented top six to

score heavily more often, andin the first innings to set up testwins.

The hosts have a more settledlineup than the tourists and the11 largely picks itself, withBrent Arnel expected to begiven the third seamer roleahead of Daryl Tuffey.

James Franklin, impressivein the one-day segment of theIndian tour, could mount a casefor Kane Williamson's No 6spot but it would not be astrong one. Williamson scoreda century on debut in India andaveraged 42.4 across theseries, and with his ability tobowl offspin he could be use-ful on a Seddon Park wicketthat is expected to dry outquickly.

New Zealand start slightfavourites with the bookmak-ers, understandably on homesoil and with Pakistan missingso many frontline players, butthe tourists are capable ofspectacular cricket at the dropof a hat.-Online

Test series just an entree for one-dayers

AUCKLAND: Kateryna Bondarenko of Ukraine plays a forehand during hermatch against Julia Goerges of Germany during day four of the ASB Classic

at ASB Tennis Centre. Reuters

Page 11: The Financial Daily-Epaper-07-01-2011

11Friday, January 7, 2011

International & Continuation

CONTINUATION

UK servicesPMI hits

20-mth lowin DecemberLONDON: Large swathes ofBritain's service sector sufferedtheir first fall in output sinceApril 2009 last month, a surveyshowed on Thursday, pointing toa sharp slowdown in economicgrowth at the end of 2010.

British GDP probably grew byjust 0.4 per cent in the last threemonths of 2010, lower thanmany economists have forecastand barely half the 0.7 per centrecorded in the third quarter ofthe year, survey compilersMarkit said.

Prime Minister DavidCameron, seeking to soothefears about the economy and theimpact of government austeritymeasures, warned it would notbe easy to return to strong, sus-tainable growth but said fullrecovery was within reach..

The Markit/CIPS services pur-chasing managers' indexdropped to 49.7 in a Decembermarked by unusually snowyweather, in contrast to forecaststhat it would hold steady atNovember's reading of 53.0.Readings below 50 indicate con-traction.

Sterling weakened by abouthalf a cent versus the dollar onthe data.

But the reaction on the gov-ernment bond market wasmuted, and economists said thefigures did not mean servicesector contraction wasinevitable in 2011, as activityhad bounced back strongly fromsimilar weather disruption inearly 2010.

"I'm a little surprised by themarket reaction as I would havethought that it was fairly clearthat the weather was going tohave a substantial negativeimpact," said Stephen Lewis,strategist at MonumentSecurities.

"However, looming publicspending cuts will have more ofan impact on services than man-ufacturing so there probably issome underlying weaknesscreeping in there."-Reuters

BRUSSELS: Euro zone eco-nomic sentiment jumped to a38-month high in Decemberpointing to healthy growth inthe last quarter of 2010, butalso to a growing divergencebetween core and peripheraleuro zone countries.

A monthly survey by theEuropean Commission showedthe economic sentiment in the16 countries using the euro inDecember rose to 106.2 pointsfrom a downwardly revised105.1 points in November.

Economists polled byReuters had expected a rise to105.5.

"The euro zone economy islikely to have posted healthygrowth again at year-end2010," said Christoph Weil,economist at Commerzbank.

Economists said theDecember sentiment indicatorwas consistent with economicgrowth of 0.4-0.5 per centquarter-on- quarter in the eurozone in the last three months oflast year.

"The bad news is, the euroarea remains deeply split eco-nomically. Peripheral countries

cannot keep up with Germany'shigh pace of growth," Weil said.

The divide was underscoredby German data on Thursdayshowing the country's manu-facturing orders growing at thestrongest pace in 10 months inNovember, rising far more thaneconomists expected mainlythanks to strong demand fordurable goods coming fromoutside the euro zone.

"It is emerging to be a very,very strong fourth quarter (forGermany)," said RainerSartoris at HSBC Trinkaus."Export orders are comingabove all from overseas. Weare still dependent on whatoccurs in the emerging coun-tries. Figures from the eurozone have a dampening effect."

The Brussels data showedeconomic sentiment rose inDecember in Germany, Franceand Italy, but declined inGreece and Spain. This compli-cates the European CentralBank's decision-making oninterest rates for the euro zonein 2011, economists said.

With countries such asGreece, Ireland, Portugal and

Spain struggling with marketpressure to bring their publicfinances back in order, the ECBis more likely to hold its bench-mark rate at its current recordlow of 1.0 per cent, economistssaid.

"The ECB will show consid-eration on the crisis countriesin its monetary policy decisionsand not raise the key interestrate in 2011," Commerzbank'sWeil said.

A further headache for theECB in its monetary policydecisions will be the sharp riseof inflation expectations amongconsumers and businesses, theCommission data showed.

Consumer inflation expecta-tions 12 months ahead surgedto an index level of 15.0 from10.7 in November, butremained below the long-termaverage of 20.6, theCommission said.

Eurostat data on Tuesdayshowed consumer inflationjumped in December to 2.2 percent, its highest level in morethan 2 years, above the ECB'starget of just below 2 per cent.-Reuters

Eurozone Dec sentimentpoints to healthy Q4 growth

SINGAPORE: Record highfood prices are moving to thetop of the agenda for manyAsian policymakers as theprospect of higher inflation in2011 poses a major threat to theregion's strong revival from theglobal financial crisis.

The United Nations' foodagency (FAO) said onWednesday that food prices hit arecord high last month, movingbeyond levels of 2008, whenriots broke out in countries asfar afield as Egypt, Cameroonand Haiti.

Food inflation in many Asiancountries, including China andIndia, is already in double digits,raising fears that the price pres-sures could spread more broadlyto other sectors and pose a threatto both economic and social sta-bility as millions of Asians livein poverty.

The FAO said sugar and meatwere at their highest since itsrecords began in 1990. Priceswere at their highest since 2008crisis levels for wheat, rice, cornand other cereals.

Benchmark prices solely inAsia for rice suggested a differ-ent picture.

The region's staple food nowstands at $535 (£346) per tonne-- less than half its 2008 levelsof more than $1,000 a tonne thatprompted several governmentsat the time to impose curbs onexports to protect their domesticmarkets.

However, the fact that rice is farfrom the lofty levels of the2007/2008 food crisis should offerno comfort for policymakers.

"I wouldn't be terribly sur-prised if 2011 resembles inmany ways 2008," said FredericNeumann, regional economist atHSBC in Hong Kong.

"Food price inflation couldreally go into double digitsacross the region and rise tosuch an extent that it under-mines the purchasing power ofhouseholds and as a result then

slows consumer demand andoverall economic growth," hesaid.

"And that's a problem forAsian economic growth. Butreally it's also a problem for therest of the world because as theAsian consumer increasingly ishelping to stabilise worlddemand, it's actually a challengeof wider global significance."

Surging food prices haveproved a trigger for socialprotests in the past, forcing gov-ernments to cave in to demandsfor action. They were a factor inthe fall from power ofIndonesia's long-term autocratSuharto in 1998.

Last year, wheat futuresprices rose 47 per cent, buoyedby a series of weather eventsincluding drought in Russiaand its Black Sea neighbours.US corn rose more than 50 percent and US soybeans jumped34 per cent.PRICES TO KEEP RISINGLuke Matthews, a commodity

strategist at CommonwealthBank of Australia, said therewas little reason to expect anylet up in the global rally in foodprices.

"We do believe that the struc-tural drivers behind high foodprices are likely to persist forsome time," he said. "We havetight stocks in the corn andsugar markets, we have worldwheat stocks susceptible to turnlower with forecasts of La Ninato persist for the next 3 monthsor so."

La Nina is a weather patternthat brings cooling tempera-tures, resulting in higher rainfallin Australia, a major wheat andsugar exporter, and parts ofSoutheast Asia.

The structural drivers makefood commodities and thestocks of food companies hotinvestment sectors this year,said Terence Wong, an analyst atbrokerage DMG in Singapore.

He cited vegetable grower and

processor China Minzhong andanimal drug maker ChinaAnimal Healthcare as his toptips in the local market.

Fan Cheuk Wan, head of AsiaPacific research at the privatebanking division of CreditSuisse, favours Indonesian palmoil firm Indofood AgriResources and suggestedinvestors avoid companies thatcould get hit by price controls.

World Bank President RobertZoellick urged governments in anewspaper opinion column toavoid protectionist measures asfood prices rise and called uponthe Group of 20 leadingeconomies to take steps to makesure the poor get adequate foodsupply.

Still, Asia's rapidly rising con-sumption as developingeconomies such as India, Chinaand Indonesia emerge on theworld stage is a major factorbehind the rise in food prices.

China, for example, is expect-ed to buy 60 per cent of interna-tionally traded soybeans in2010/11, double its purchases offour years earlier.

Several countries have imple-mented measures to try to keepfood prices under control, worriedabout a repeat of the 2007/2008crisis, when surging commodityprices prompted a jump in infla-tion and left many countries witha deep trade deficit.

India's food prices rose to aone-year high of more than 18per cent in the year to the end ofDecember, data on Thursdayshowed. That, along with risingfuel prices, is the main reasonanalysts expect the central bankto raise rates this month.

The Indian government hasoperated a range of measures foryears to ensure stable foodprices, but since last year hasboosted the release of nationalstocks of grains and has pledgedto continue with duty-freeimports of crude vegetable oils.-Reuters

Asia scrambles tocontain food inflation

WASHINGTON: New USclaims for jobless benefitsmoved higher last week,but a decline in the four-week average to a nearly 2-1/2-year low suggested thelabor market continues toimprove.

Initial claims for stateunemployment benefitsincreased 18,000 to a sea-sonally adjusted 409,000,the Labor Department saidon Thursday, above econo-mists' expectations for400,000.

The data falls outside thesurvey period for the gov-ernment's closely watchedemployment report forDecember, which onFriday is expected to shownonfarm payrolls jumped175,000 after November'ssurprisingly small 39,000gain.

The spike in claims doeslittle to change perceptionsthe economy is now on asustainable growth path, asflagged by sturdy data onconsumer spending, tradeand manufacturing.

Signs that the labor mar-ket was improving wereunderscored by the four-week moving average ofunemployment claims -- abetter measure of underly-ing trends -- which fell3,500 last week to 410,750,the lowest level since lateJuly 2008.

"It's telling you veryclearly that the employ-ment side of the economyis picking up, it paints apretty definite picture thatlayoffs are on the waydown," said Steve Blitz, a

senior economist at ITGInvestment Research inNew York.

Growing optimism overthe economy was temperedsomewhat by news thatmany top retailers missedWall Street's expectationsfor December sales, hurtby a post-Christmas bliz-zard on the East Coast andshoppers returning to theirfrugal ways after flockingto stores during the holi-days.

Analysts were expectingan average rise of 3.4 percent in December sales atstores open at least a yearfor the 28 major retailerstracked by ThomsonReuters.

LIMITED MARKETIMPACT

The claims data had alimited impact on USfinancial markets, withinvestors opting to wait forthe employment report. USstocks were mostly flat,while Treasury debt priceseked out modest gains. Thedollar was up against abasket of currencies.

The labor market haslagged the recovery, butwith the economic outlookstrengthening, employersare laying off fewer work-ers and taking on newemployees.

Reports on Wednesdayshowed the number ofplanned layoffs at localfirms dropped to a 10-1/2year low in December,while private sector hiringwas unexpectedly robust.Seasonal factors, however,could have skewed the

data."Given continuing evi-

dence that the pace ofgrowth is picking up, weshould continue to seeimprovement in theemployment picture in thequarters ahead," said JimBaird, chief investmentstrategist at Plante MoranFinancial Advisors inKalamazoo, Michigan.

"Nonetheless, it is stillgoing to take years to fullyrestore the jobs market topre-crisis conditions giventhe magnitude of job lossesduring the recession andthe persistently high unem-ployment rate."

The unemployment rateis expected to have edgeddown to 9.7 per cent inDecember from 9.8 percent in November.

Economists say gettingthe four-week movingaverage for new joblessclaims below 400,000 iscritical to reducing thelofty unemployment rate.

The claims report alsoshowed the number of peo-ple still receiving benefitsunder regular state pro-grams after an initial weekof aid fell 47,000 to 4.10million in the week endedDec. 25.

The number of people onemergency unemploymentbenefits fell 133,625 to3.58 million in the weekended Dec. 18, the latestweek for which data isavailable. A total of 8.77million people were claim-ing unemployment benefitsduring that period under allprograms.-Reuters

US jobless claimsup, underlying

trend still down

from the following websites: www.cga.gov.pk;www.agpr.gov.pk; www.agsindh.gov.pk; www.agkyber-pakhtunkhwa.gov.pk, and www.agpunjab.gov.pk. This optionform will be sent by the pensioner to the Accounts Office formwhere his/her original PPO was issued, before submission ofOption form to Accounts Offices, the Pensioner shall open theAccount with the Bank from where he/she wants to draw his/herpension. The Pensioner is also required to produce an indemnitybound for aggregate amount equal to six months pension or author-ize the bank to mark lien on his/her account to the extent of sixmonth pension. Until completion of registration process by theAccounts Officers, the Pensioner will continue to draw his/herpension from existing system.

On completion of registration, the Accounts Office will call fororiginal PPO through concerned bank and intimate the date forwhich pension would be credited to bank account of the pension-er. The Controller General of Accounts has issued necessaryinstructions to all Accounts Office to start implementation of newprocedure with effect from 1st January. -Agencies

Continued from page 12No #1

The President said that Taseer was killed to sharpen the polari-sation in the society to derail the democratic process using thefaçade of religion. He expressed the hope that all the dirty handsbehind the crime will be exposed and punished in accordance withthe law. The supreme sacrifice rendered by Shaheed SalmanTaseer will not go in vain, the President further said.

The President also prayed to Allah to grant the Shaheed a highplace in heaven and asked Begum Salman Taseer to convey hiscondolences to other members of the bereaved family. BegumSalman Taseer thanked the President saying that his words were asource of great strength in this hour of tragedy. -Online

Continued from page 12No #2

Maybank and Kim Eng shares both rose nearly 3 per cent onWednesday before trading was suspended on Thursday. Shares inKim Eng, valued at about $1.3 billion, have risen more than 35per cent since mid-December, when reports emerged of animpending stake sale. "This position will widen our investmentbanking scope and reach into Southeast Asian in line with ourregional aspirations," Maybank Chief Executive Abdul WahidOmar told a news conference. Maybank, which was previouslylinked with another regional brokerage OSK Holdings, said it hasno plans of further acquisitions in this business.

Maybank has offered to buy a 44.6 per cent stake in Kim Engfrom a unit of Taiwan's Yuanta Financial Holdings and the familythat owns the Singapore broker for $3.10 per share, a premium ofabout 15 per cent to Wednesday's closing price. The deal, jointlyadvised by Nomura and Maybank Investment Bank, is expected tobroaden Maybank's sources of overseas revenue following itsentry into Pakistan, Vietnam and Indonesia to counter the impactof slowing growth in Malaysia's increasingly crowded financialmarket. "The Kim Eng acquisition would add about 5 per cent toMaybank's bottom-line, but it will depend on how the deal isfunded. If by debt, the first year's contribution will be zero,"HwangDBS Vickersbanking analyst Lim Sue Lin said.-Agencies

Continued from page 12No #3

discontinue the valuation-advices in respect of imports. -Agencies

Continued from page 12No #4

Mohtarma Benazir Bhutto to express solidarity with the PPP.Similarly Chief Minister Punjab Shahbaz Sharif also rushed to

the Federal Government Services Hospital where the governorwas brought after attack.

The PML-N leaders wanted to attend the funeral prayers butPPP leader Raja Riaz pointed out that it would not be appropriate.

Continued from page 1No #5

instruction concerning secured personal loans (other thansecured against liquid assets) mentioned in Regulation R-23stands withdrawn, the circular added. The State Bank has alsoamended Regulation R-3 by adding a new provision which statesas under: "Banks/DFIs may waive the requirement of 50 per centdebt burden in case a credit card and personal loan is properlysecured through liquid assets (as defined in prudential regula-tions) with minimum 30 per cent margin."

With regard to Regulation R-1 pertaining to facilities to relatedpersons, the SBP has replaced the first paragraph of the said reg-ulation with the following paragraph:

"This condition shall not apply to the consumer financingallowed by the banks/DFIs to their employees as part of compen-sation package provided the detailed terms and conditions of thebenefits which the banks/DFIs want to give to their employees arespecifically mentioned in the Employees Service Rules/HRPolicy. These employees Service Rules/HR policy should be dulyapproved by the Board of Directors. Further, such consumerfinancing to the employees should be treated as staff loans and notas general consumer loans."

Continued from page 1No #6

onions from Pakistan will be reaching Mumbai via the sea route.Meanwhile, STC has also approached the External AffairsMinistry, seeking its intervention in the issue. "We have written aletter to the External Affairs Ministry to intervene in this issue," asenior official said. STC and PEC were asked to import 300tonnes and 1,000 tonnes of onions, respectively, from Pakistan tocontain prices in the domestic market, which had skyrocketed toRs 75-85/kg in retail markets across the country on December 22,2010, and continue to rule at Rs45-70/kg in metros. -Online

Continued from page 1No #7

Qalat-Chaman project has been issued.Chairman planning commission has said that the commission will

try its best to release the entire allocated budget for Balochistan butthe finance ministry is refusing to release the funds, PM has beeninformed about the situation in this regard. Committee memberRaja Zafar ul Haq has said that AGPR charges 2 per cent commis-sion on the release of all the funds which is wrong. On this the com-mittee summoned AGPR authorities in the next meeting. The com-mittee has asked for the project report for construction of Khusha'alBridge in the next session of CDWP. Zahid Khan informed that the1992 project of road construction between Hasan Abdal toMansehra is still pending and no funds have been released for theproject, this will scare off Asian Development Bank as they weresuppose to do the funding. -Agencies

Continued from page 1No #8

recognition of this region which was now being eliminated. -Agencies

Continued from page 1No #9

Chaudhry to take notice of unjust hike in the prices of LPG andhold judicial inquiry against gas mafia for their alleged involve-ment in loot and plunder spree of Rs300 billion. -Online

Continued from page 1No #10

high profile personalities such as the president, prime minister,diplomats and large number of people come to witness the parade,their security is also important. Last Pakistan Day Parade washeld at Sports Complex Islamabad during the era of President GenPervez Musharraf in 2007. -Online

Continued from page 1No #11

Farooq are in Saudi Arabia and they are unable to get security inPakistan. Chief Justice said that DG FIA has retired and he is oncontract employment, his job is at the mercy of the Governmentand thus was not taking interest in Hajj scam.

Continued from page 1No #12

He said there are serious allegations of corruption against former Director General Hajj RaoShakeel. Chief Justice asked DG FIA as to why he did not contact Pakistani Ambassador in SaudiArabia about the scam. He also observed that why the authorities were not allowing those who wantto come from Saudi Arabia in connection with the case. Counsel for former Religious AffairsMinister Hamid Saeed Kazmi said that Azam Swati cannot give statements as he desires.DirectorGeneral FIA Wasim Ahmad submitted before the court that former DG Hajj Rao Shakil is involvedin a corruption of Rs200 million.

up 3.75 points, or 0.14 per cent, at 2,705.95. Energy shares added to losses as oil prices tumbledmore than 2 per cent to $88.37 a barrel. The S&P energy index fell 0.7 per cent.

"We think demand for commodities should continue to improve, but in the short term there's a neg-ative correlation between the dollar and commodities," Todd said. The dollar was up 0.7 per centagainst other major currencies. Among Nasdaq gainers was Microsoft Corp, which took a big stepaway from its alliance with Intel Corp to team up with Britain's ARM Holdings in the red-hot tabletand smart phone arena. US-listed ARM shares rose 6.4 per cent to $23.29, Intel fell 1.3 per cent to$20.67. Microsoft was up 0.9 per cent at $28.26.-Reuters

Continued from page 5No #13

"It could be a reality check, with some investors thinking that the strong gains seen are not justi-fied by the state of the economy." nvestors were closely watching the data for clues about the close-ly watched US nonfarm payrolls due on Friday.

Payrolls likely increased by 175,000 in December, according to a Reuters poll, instead of the140,000 expected before an independent report on Wednesday showed a record jump in private jobslast month. Diageo was a significant support for UK large-caps, up 2 per cent after the maker ofJonnie Walker and Smirnoff was initiated with a "buy" rating in a note from Citi, which painted arosy picture for the premium spirits market. British Airways was top gainer, up 4.4 per cent after theairline said its December traffic figures would have been up without disruption caused by heavysnow.-Reuters

Continued from page 5No #14

turnover of 168.2 million a day earlier. Lotte Pakistan stood as the volume leader with 12.45 mil-lion shares followed by DG Khan Cement with 12.38 million shares and Silk Bank with 7.26 mil-lion shares. Out of total 394 active scrips 237 moved up, 130 went down, and 27 stayed where theywere at the beginning of the session.

Continued from page 5No #15

Page 12: The Financial Daily-Epaper-07-01-2011

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KUALA LUMPUR/ SINGA-PORE: Maybank ,Malaysia'slargest lender by assets, is snap-ping up Singapore broker KimEng Holdings for $1.4 billion,in a move to strengthen its gripon the regional stock brokingindustry and diversify thelender's source of overseas rev-enue.

The acquisition comes asSoutheast Asian markets are ona roll, with Thailand and

Indonesia ranking as the bestperforming major markets inAsia last year, spurred by for-eign fund inflows and robusteconomic growth.

"What Maybank wants to dois expand its stock brokingoperations, and it makes sensefor it to acquire a companywhich provides immediateexposure," Vincent Khoo, UOBKay Hian's head of research,said on Thursday.

Investment banking and stockbroking are becoming increas-ingly important for Malaysianbanks as stiffer domestic com-petition puts further pressure onnet interest margins on its loans.

Two of the best performingMalaysian banks in 2010 wereCIMB Group and RHB Capital,which were top deal-makers interms of number and valuerespectively.

See # 3 Page 11

Maybank buyingKim Eng for $1.3bn

Maybank move aims to up revenue sources afterentering into Pak, Vietnam, & Indonesia

KARACHI: Muhammad Haroon Agar,Chairman, Pakistan Chemicals & DyesMerchants Association, in a press state-ment, stated that on his invitation, a del-egation of 24-member Business Tycoonsof a large Chinese industrial group isvisiting Pakistan on 20th January, 2011to explore the opportunities to setupindustrial base for raw-materials in thecountry.

Agar articulated that owing to exorbi-tant and unprovoked additional chargesof shipping lines for earning high profitsand increased valuation advices, theimport business is facing a persistentupshot from the rising cost of doingbusiness to an alarming situation.

Agar said that such unwarrantedincrease in prices of imported items andraw-material is acting as detrimental forthe businesses.

Agar informed that in order to shunthe abusive dominance of shippinglines/ agents for claiming exorbitantcharges and to attract the foreign directinvestment, he has invited the group ofChinese industrialists to explore theimmense investment opportunities herein Pakistan, particularly in Karachi andSindh.

The said delegation will visit Pakistan

Chemicals & Dyes MerchantsAssociation for B2B meetings and toacquire an insight about demand andsupply of chemical business, he added.

Agar said that a presentation will begiven to the delegation about the invest-ment opportunities available andChinese investors will be invited toestablish an industrial base in Pakistanfor the items and raw-materials exportedto Pakistan.

While establishing the industrial baseof Chinese materials exported toPakistan, the raw-material will be avail-able on low-cost.

Agar focused that Pakistan importsfrom China chemicals, dyes, plastics,raw materials worth around $3 billionevery year whereby a great amount offoreign exchange is exhausted in thisimport, therefore, motivating theChinese investors to establish industrieshere in Pakistan will lead to visibleenhancement in the foreign directinvestment, decrease in the cost of man-ufacturing and saving of foreignexchange.

Agar also urged the Government toeradicate the abusive dominance andcartelisation of shipping companies and

See # 4 Page 11

China traders toexplore Pakistan

Chinese industrial group visits on 20th

KARACHI: President Asif AliZardari has said that ShaheedSalman Taseer wrote with hisblood a new chapter in the his-tory of PPP's continuing strug-gle for human rights, democra-cy and no-discrimination.

He said this while talking toMrs Salman Taseer on the eveof the soyem of the lateGovernor who was gunneddown by his own security guardin Islamabad.

The President said thatShaheed Salman Taseer was anundaunted political leader and a

true follower of ShaheedZulfiqar Ali Bhutto andShaheed Mohtarma BenazirBhutto in treading their path tomartyrdom.

He called a spade a spade anddid not mince words in express-ing what he believed to be trueand right, the President said ofSalman Taseer.

Salman Taseer's courage anddetermination in espousing thecauses of the marginalised sec-tions of society and readiness topay the highest price for it willcontinue to inspire many, he

said."His defiant cry against big-

otry and his loud and clarioncall for defending marginalisedsections of society will echo inthe annals of time. SalmanTaseer was an asset of the Partyand did it proud, the Presidentsaid."

"Few possess the courage ofShaheed Salman Taseer instanding up to bigots and fanat-ics, and fewer still the readinessto embrace martyrdom for it",the President said.

See # 2 Page 11

Zardari praisesTaseer sacrifice,consoles family

Governor Punjab embraced martyrdom defending minorities

WASHINGTON: Terming

the slaying of Punjab

Governor Salman Taseer as a

loss for Pakistan, the US has

said the country has to make

efforts to root out extremism

and bring greater peace and

stability.

"This is an individual who

had worked hard to promote

tolerance, and his loss is a

great one for Pakistan," White

House Press Secretary Robert

Gibbs, said.

"We remain committed to

the efforts that the Pakistani

government is and must

undertake to root out violent

extremism and to bring greater

peace and stability to that

country and to that region of

the world," he said.

Gibbs was responding to

questions about the assassina-

tion, which is said to be a

reflection of violent extrem-

ism in the country.

Meanwhile, Lawrence

Cannon, the Canadian Foreign

Minister, in a statement also

expressed his condolences to

the people of Pakistan on the

assassination of Taseer.

"On behalf of the

Government of Canada, I

extend my deepest condo-

lences to the family and

friends of Governor Salman

Taseer, and to the Pakistani

people, in the wake of his

vicious and cowardly assassi-

nation," Cannon said.

"His death is a loss to the

people of Pakistan and all

those who shared his commit-

ment to the promotion of tol-

erance and legal reforms in

that country," he said. -Online

US terms Taseerdeath a big loss

WASHINGTON: The United Statesplans to send 1,400 additional combatMarines to Afghanistan to try to holdon to recent but fragile security gains,only months before a planned USdrawdown, The Wall Street Journalreported Thursday.

Violence is at its worst inAfghanistan with record casualties onall sides of the conflict and with theinsurgency spreading out of tradition-al strongholds in the south and eastinto once-peaceful areas in the northand west.

A review by President BarackObama last month found US andNato forces were making headwayagainst the Taliban and al Qaeda butserious challenges remained. It saidthe Taliban's momentum had beenarrested in much of Afghanistan andreversed in some areas.

The review also said the UnitedStates was on track to begin a gradualwithdrawal of its troops -- now num-bering about 100,000 in a total for-eign force of 150,000 -- from July2011.

"The Marine battalion could startarriving on the ground as early asmid-January. The forces wouldmostly be deployed in the south,around Kandahar, where the US hasconcentrated troops over the pastseveral months," The Wall StreetJournal said, citing unnamed offi-cials.

Nato and US officials in Kabulwere not immediately available forcomment on the report.

A boost in combat troop numbers,even if only temporary, could faceopposition with members of Obama'sDemocratic Party, the majority of

whom are keen to see troops startcoming home.

The move could also encourageRepublican rivals like Senator JohnMcCain, who has argued against a2011 drawdown date, saying it hasonly emboldened the militants.

Under pressure to show sustainableresults in the first half of 2011, thetemporary boost in troop numberscould help counter any "spring offen-sive" by Taliban militants returningfrom Pakistan after the cold wintermonths, the report said.

While fighting between insur-gents and foreign troops has tendedto intensify during warmer months,military commanders on the groundnow speak less in terms of fighting"seasons" as both sides havestepped up their attacks throughoutthe year. -Reuters

US to send 1400 extratroops to Afghanistan

KARACHI: A delegation of High Peace Council of the Islamic Republic of Afghanistanled by its Chairman and former President of Afghanistan Professor Burhanuddin

Rabbani called on President Asif Ali Zardari at Bilawal House.-APP

Taseer's murder

Malik briefsPresident

KARACHI: Federal

Interior Minister Rehman

Malik called on President

Asif Ali Zardari in Bilawal

House to brief him about

the investigations of Salman

Taseer's assassination.Rehman Malik held a

meeting with President AsifAli Zardari here in Karachion Thursday and discussedthe investigations of SalmanTaseer's murder.

During the meeting, boththe leaders also discussedthe political situation whereRehman Malik briefed pres-ident about the MQM'sreluctances to join coali-tion.

Additionally, this has beenlearnt from the sources thattoday (Friday) RehmanMalik along with PMYousuf Raza Gilani willalso hold an importantmeeting at Governor HouseSindh with Governor Ishrat-ul Ebad and other MQMleaders in try to convincethem to rejoin the federalcabinet. -Agencies

PPP complicating

Taseer’s murder:

Rana SanaISLAMABAD: ProvincialMinister for Law, RanaSanaullah said that some lead-ers of Pakistan Peoples Partyby dubbing the assassinationof Governor Punjab as 'politi-cal' are complicating the caseinstead of resolving it.

Talking to private TV chan-nel here on Thursday, RanaSanaullah said GovernorPunjab was killed inIslamabad thus InteriorMinistry is responsible for thecase and if any matters regard-ing this case are in Punjab thanwe would see.

He further said that the caseshould not be called politicalassassination as it could com-plicate it. He said thatGovernor Salman Taseerraised the issue of Asia Bibipolitically but unfortunatelyour media and religious par-ties air the case as religiousissue.

He said that Punjab govern-ment provided vehicles forsecurity of the GovernorSalman Taseer while federalcapital has received foreignaid worth billions of rupees totackle terrorism.

He said that Dr Babar Awanshould take notice that wehave demanded several timesto provide some aid to Punjabfrom foreign aid but to noavail.

He said if the Governor wasin Islamabad than federal govtwas responsible for his securi-ty he should have been provid-ed an Islamabad rangerssquad. -Online

Pension thru banksapproved

ISLAMABAD: In pursuanceof Supreme Court's Order, thegovernment has approved dis-bursement of pension, on thelines of salary payment, bydirect credit to pensioner'saccount maintained in anyscheduled bank.

According to a statement issuedby the AGPR here on Thursday,the new procedure has been for-mulated to mitigate the problemsbeing faced by pensioner - espe-cially elderly pensioners.

"All pensioners have theoption to opt for the new proce-dure or to continue drawingpension under existing arrange-ments", the statement added.

It said that an option form hasbeen devised for the pensioner,who wants to draw his/her pen-sion through any bank.

The option form can beobtained from AccountantGeneral Offices or downloaded

See # 1 Page 11

Pak must make efforts to root out extremism


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