12
International Sunni Ittehad Council to walk for peace See on Page 12 Govt demotes 19 top officers See on Page 12 ECP to hear fake degree cases See on Page 12 World powers have no option but talks with Iran See on Page 12 Ahmed Siddique KARACHI: State Bank of Pakistan has released the combined balance sheet of all scheduled banks in the country till October 1, 2010 which was the first weekend of the current month. According to the data, total deposits in the first nine months of CY10 (January to September), increased by 6.8 per cent to Rs4.71 trillion as com- pared to Rs4.42 trillion at the beginning of current year. However, in the third quarter of the calendar year (3QCY10) the deposits decreased by 1.2 per cent QoQ against the growth of 5.4 per cent in the previous quarter (April-June-10). In sharp contrast to the deposit performance, gross advances marginally fell one per cent to Rs3.28 tril- lion on October 1, 2010 against Rs3.321 trillion at beginning of the calendar year. Similarly, provisioning grew by 18 per cent to Rs327 billion versus Rs227.7 billion recorded at the beginning of the year 2010. That's why net advances dipped 2.7 per cent to Rs2.96 trillion from Rs3.04 trillion during the period. Due to deteriorating quali- ty of assets, where NPL’s are their at higher level, banks preferred to grow their investment portfolio rather than lending the money to borrowers. This was evident from the fact that investment grew by hefty 9.5 per cent to Rs1.81 trillion compared to Rs1.65 trillion in CY09. IDR ratio surged to nearly 38.33 per cent from 37.4 per cent at CY09. Furthermore, overall bal- ance sheet size of the sec- tor improved by 3.7 See # 9 Page 11 Lenders’ deposits swell to Rs4.71tn 9M deposits up 6.8pc; drop by 1.2pc QoQ Ghulam Raza Rajani KARACHI: The buying momentum of the offshore investors continued throughout the last week in the local bourses with attractive fresh net inflow of $9.6 million, as per the National Clearing Company of Pakistan Limited (NCCPL) data. On the other hand, posi- tive activities continued at local bourses as KSE 100- Index closed up 1.67 per cent or 171.36 points at 10,431.84. Buying was witnessed on the expectations of good quarterly corporate results and prospects of foreign pledges in FoDP meeting. However, vol- umes declined 2 per cent to stand at 90 million shares against 92 million shares traded week before last. As per details, foreign investors decided buying fresh positions as they bought shares worth $16.48 million and sold $6.87 million, resulting in net buying of $9.61 mil- lion during the last week. On the daily basis, for- eigners invested $1.1 mil- lion and $1.15 million on Monday and Tuesday respectively. Likewise on Wednesday foreign buying worth $1.8 million was carried out. Similarly, the same euphoria engendered buying of $2.68 million on Thursday and $2.88 mil- lion on Friday . See # 10 Page 11 Outlanders clutch $9.61mn equities Foreign buying at KSE during last wk Crude Oil (brent)$/bbl 82.45 Crude Oil (WTI)$/bbl 81.25 Cotton $/lb 109.87 Gold $/ozs 1,372.00 Silver $/ozs 24.29 Malaysian Palm $ 960.80 GOLD (NCEL) PKR 38,252 KHI Cotton 40Kg PKR 7,984 *Last Updated 20:00 PST Yearly(Jul, 2010 up to 14-Oct-2010) Monthly(Oct, 2010 up to 14-Oct-2010) Daily (14-Oct-2010) Total Portfolio Invest (8 Oct-2010) 48.35 -0.87 -0.25 2461 2.88 -1.30 -0.56 -0.26 -0.21 -0.63 0.07 SCRA(U.S $ in million) Portfolio Investment FIPI (15-Oct-2010) Local Companies (15-Oct-2010) Banks / DFI (15-Oct-2010) Mutual Funds (15-Oct-2010) NBFC (15-Oct-2010) Local Investors (15-Oct-2010) Other Organization (15-Oct-2010) (U.S $ in million) NCCPL GDR update Commodities Forex Reserves (8-Oct-10) Inflation CPI% (Jul 10-Sep 10) Exports (Jul 10-Sep 10) Imports (Jul 10-Sep 10) Trade Balance (Jul 10-Sep 10) Current A/C (Jul 10- Aug10) Remittances (Jul 10-Aug 10) Foreign Invest (Jul 10-Sep10) Revenue (Jul 10-Sep10) Foreign Debt (Jun 10) Domestic Debt (Aug 10) Repatriated Profit (Jul- Aug 10) LSM Growth (Jul 10) GDP Growth FY10E Per Capita Income FY10 Population $16.97bn 13.77% $5.18bn $9.03bn $(3.85)bn $(944)mn $1.72bn $455.10mn Rs 310bn $55.63bn Rs 4863bn $100.90mn 3.05% 4.10% $1,051 170.80mn 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 21.09 2.00 1.70 9.75 PKR/Shares 111.71 181.23 42.97 36.52 33.51 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) 06-Oct-2010 06-Oct-2010 06-Oct-2010 29-Sep-2010 15-Oct-2010 15-Oct-2010 15-Oct-2010 15-Oct-2010 15-Oct-2010 15-Oct-2010 15-Oct-2010 15-Oct-2010 15-Oct-2010 15-Oct-2010 15-Oct-2010 12.83% 13.07% 13.22% 13.50% 12.72% 12.99% 13.20% 13.61% 13.71% 13.63% 13.74% 13.78% 14.24% 14.34% 14.53% Money Market Update Symbols Buy (Rs) Sell (Rs) Australian $ 84.50 84.80 Canadian $ 84.80 85.20 Danish Krone 15.85 16.55 Euro 119.10 119.60 Hong Kong $ 11.00 11.30 Japanese Yen 1.042 1.068 Saudi Riyal 23.00 23.25 Singapore $ 65.40 65.60 Swedish Korona 12.90 13.30 Swiss Franc 89.35 90.35 U.A.E Dirham 23.35 23.50 UK Pound 135.10 136.10 US $ 86.05 86.35 Open Mkt Currency Rates Billets Price Rs./Ton 150 x 150mm 52,000 125 x 125mm 52,000 90 x 90mm/ 100 x 100mm/ 105 x 105mm 52,500 80 x 80mm/ 75 x 75mm 52,850 65 x 65mm 53,700 50 X 50mm 54,200 Bloom 260 x 260mm 52,300 Billet, Grade SUP 6 & 7 100 x 100mm 69,200 75 x 75mm 69,500 Billet, Grade SUP 9 100 x 100mm 70,200 75 x 75mm 70,500 Steel Prices Subscribe now Tel: 92-21-5311893-6 Fax: 92-21-5388428 Email: editor@ thefinancialdaily.com www.thefinancialdaily.com CITIES MAX-TEMP MIN ISLAMABAD 31°C 18°C KARACHI 34°C 25°C LAHORE 32°C 23°C FAISALABAD 34°C 21°C QUETTA 28°C 5°C RAWALPINDI 32°C 18°C Weather Forecast Index Close Change KSE 100 10,431.84 22.82 Nikkei 225 9,500.25 83.26 Hang Seng 23,757.63 94.54 Sensex 30 20,125.05 372.59 SSE COMP. 2,971.16 91.52 FTSE 100 5,703.37 23.84 Dow Jones 11,062.78 31.79 *Last Updated 20:00 PST Global Indices Staff Reporter/ Agencies ISLAMABAD/ KARACHI: All the rumours regarding MQM's chickening out of coalition from Pakistan Peoples Party government came to an end Sunday night when Governor Sindh Dr Ishrat- ul Ebad Khan met with President Asif Ali Zardari here at Aiwan-e-Sadr. He was invited by President to Islamabad to confer upon the ongoing goings-on in Karachi. According to the media, both leaders took stocks of issues with special focus was given to situation in Karachi. President Zardari urged Governor Ebad to continue with his official responsi- bilities while he assured the resolution of reservations put forward by MQM. Media further revealed that President assured the government would go-for- ward with its coalition part- ners by adopting the dia- logues, added that PPP and MQM would go hand-in- hand in future too. President also ordered Interior Ministry Rehman Malik to dig-out the ongo- ing target-killing in the Karachi. Earlier, according to the news broadcasted all over the media in country, Ebad had made up his mind to relinquish governorship and in this regard he did com- pose his resignation, which would be submitted to the President, if former does See # 11 Page 11 COALITION SALVAGED President rejects Ebad’s resignation ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani Sunday addressed and assured the nation that no clash of institutions is possible during Pakistan Peoples Party term of government. He said that he did not even know about the rumor of the executive order for reinstatement of judges being taken back. In his address, Prime Minister said he remained undeterred while reinstat- ing the higher judiciary. "We were told that executive order, if promulgated, could invite an appli- cation of the Article 6 of the Constitution", the PM added, "but we remained undaunted and undeterred". He also said that ignoring Prime Minister's denial is equivalent to ignoring his constitutional stature. Prime minister also expressed his con- sent to sit together with the judges to resolve all the conflicts. Prime Minister said that ensuring speedy justice tops his government's priorities. "Time is testing us again", the PM said, "let us not waste time in futile efforts of survival". He also told the nation that the gov- ernment has decided to reorganise 8 state-run institutions that are operating in financial deficit. Addressing the nation, Gilani said "the policy of reconciliation will bring political powers and state institutions closer; with public welfare being the focal point." Prime Minister said he has ordered inquiry into the news report that caused furor so that the nation may know who tried a mid- night-assault on relations between the judiciary and the government. He said he denied the news report soon thereafter. The President too termed it false news. "But even then if it is not accepted, then I may remind that we are violat- ing the principles of mutual respect, which is the soul of Constitution of Pakistan and is Parliamentary in nature," Gilani said. Gilani said being the Leader of the House he had announced restoration of the judges. "If he announces restoration of the judges, it is accept- ed. Similarly if he denies news, then keeping in view the stature of the posi- tion, it too should be accepted on all forums." "If false news is given See # 11 Page 11 PM denies clash of institutions Gilani wants to sit with judges to iron out issues Re-vows to reorganise 8 SOEs Sharif blames President for current quandary LONDON: PML-N leader Mian Nawaz Sharif has said that the President is respon- sible for the sorry-state of affairs of the country. Addressing PML-N party workers here on Sunday, Mian Nawaz Sharif said that the government backed out from all its promises and held the President responsible for breaking all pledges and promises. He further said if the dete- riorating situation of the country is left unaddressed then everyone would be See # 6 Page 11 ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani addressing the nation on television and radio. CM KP, CM Balochistan Sardar Aslam Khan Raeesani, PM AJK Sardar Ateeq, CM Mehdi Shah, Raja Riaz and Pir Mazahar ul Haq are also seen. -APP 3rd Anniversary Nation remembers Karsaz martyrs ISLAMABAD: On the eve of the third anniversary of the Karsaz tragedy (on October 18), the PPP co- chairman and President Asif Ali Zardari has paid glow- ing tributes to the martyrs. He said the tragedy was a reminder that the central See # 8 Page 11 PML unification 'Q' leaders meet Shahbaz LAHORE: Senators SM Zafar and Tariq Azeem met Punjab Chief Minister Muhammad Shahbaz Sharif, here Sunday. Members National Assembly Chaudhry Nisar, Khawaja Muhammad Asif See # 7 Page 11 Karachi, Monday, October 18, 2010, Zul-Qa’dah 9, Price Rs12 Pages 12 MQM wins PS-94 by-poll KARACHI: According to unofficial results, Muttahida Qaumi Movement's (MQM) candidate for the vacant seat of PS-94 Saifuddin Khalid has emerged victorious, grab- bing 91752 votes from the constituency, private television channels reported Sunday. The said seat had fallen vacant after the murder of Raza Haider of MQM, while ANP boycotted the polls. The report said that some 1,022 Rangers and 2,015 police per- sonnel had been deployed in the constituency, where 12 polling stations were declared highly sensitive. -Agencies

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Page 1: The Financial Daily-Epaper-18-10-2010

International

Sunni Ittehad Council to walk for peace See on Page 12

Govt demotes 19 top officers See on Page 12

ECP to hear fake degree cases See on Page 12

World powers have nooption but talks with Iran

See on Page 12

Ahmed Siddique

KARACHI: State Bank ofPakistan has released thecombined balance sheet ofall scheduled banks in thecountry till October 1,2010 which was the firstweekend of the currentmonth.

According to the data,total deposits in the firstnine months of CY10(January to September),increased by 6.8 per centto Rs4.71 trillion as com-pared to Rs4.42 trillion atthe beginning of currentyear.

However, in the thirdquarter of the calendar year(3QCY10) the depositsdecreased by 1.2 per centQoQ against the growth of5.4 per cent in the previousquarter (April-June-10).

In sharp contrast to thedeposit performance, grossadvances marginally fellone per cent to Rs3.28 tril-lion on October 1, 2010

against Rs3.321 trillion atbeginning of the calendaryear.

Similarly, provisioninggrew by 18 per cent toRs327 billion versusRs227.7 billion recorded atthe beginning of the year2010. That's why netadvances dipped 2.7 percent to Rs2.96 trillion fromRs3.04 trillion during theperiod.

Due to deteriorating quali-ty of assets, where NPL’s aretheir at higher level, bankspreferred to grow theirinvestment portfolio ratherthan lending the money toborrowers. This was evidentfrom the fact that investmentgrew by hefty 9.5 per cent toRs1.81 trillion compared toRs1.65 trillion in CY09.IDR ratio surged to nearly38.33 per cent from 37.4 percent at CY09.

Furthermore, overall bal-ance sheet size of the sec-tor improved by 3.7

See # 9 Page 11

Lenders’ depositsswell to Rs4.71tn

9M deposits up 6.8pc; drop by 1.2pc QoQ

Ghulam Raza Rajani

KARACHI: The buyingmomentum of the offshoreinvestors continuedthroughout the last weekin the local bourses withattractive fresh net inflowof $9.6 million, as per theNational ClearingCompany of PakistanLimited (NCCPL) data.

On the other hand, posi-tive activities continued atlocal bourses as KSE 100-Index closed up 1.67 percent or 171.36 points at10,431.84.

Buying was witnessedon the expectations ofgood quarterly corporateresults and prospects offoreign pledges in FoDPmeeting. However, vol-umes declined 2 per cent

to stand at 90 millionshares against 92 millionshares traded week beforelast.

As per details, foreigninvestors decided buyingfresh positions as theybought shares worth$16.48 million and sold$6.87 million, resulting innet buying of $9.61 mil-lion during the last week.

On the daily basis, for-eigners invested $1.1 mil-lion and $1.15 million onMonday and Tuesdayrespectively. Likewise onWednesday foreign buyingworth $1.8 million wascarried out. Similarly, thesame euphoria engenderedbuying of $2.68 million onThursday and $2.88 mil-lion on Friday .

See # 10 Page 11

Outlanders clutch$9.61mn equities

Foreign buying at KSE during last wk

Crude Oil (brent)$/bbl 82.45

Crude Oil (WTI)$/bbl 81.25

Cotton $/lb 109.87

Gold $/ozs 1,372.00

Silver $/ozs 24.29

Malaysian Palm $ 960.80

GOLD (NCEL) PKR 38,252

KHI Cotton 40Kg PKR 7,984

*Last Updated 20:00 PST

Yearly(Jul, 2010 up to 14-Oct-2010)

Monthly(Oct, 2010 up to 14-Oct-2010)

Daily (14-Oct-2010)

Total Portfolio Invest (8 Oct-2010)

48.35

-0.87

-0.25

2461

2.88

-1.30

-0.56

-0.26

-0.21

-0.63

0.07

SCRA(U.S $ in million)

Portfolio Investment

FIPI (15-Oct-2010)

Local Companies (15-Oct-2010)

Banks / DFI (15-Oct-2010)

Mutual Funds (15-Oct-2010)

NBFC (15-Oct-2010)

Local Investors (15-Oct-2010)

Other Organization (15-Oct-2010)

(U.S $ in million)

NCCPL

GDR update

Commodities

Forex Reserves (8-Oct-10)

Inflation CPI% (Jul 10-Sep 10)

Exports (Jul 10-Sep 10)

Imports (Jul 10-Sep 10)

Trade Balance (Jul 10-Sep 10)

Current A/C (Jul 10- Aug10)

Remittances (Jul 10-Aug 10)

Foreign Invest (Jul 10-Sep10)

Revenue (Jul 10-Sep10)

Foreign Debt (Jun 10)

Domestic Debt (Aug 10)

Repatriated Profit (Jul- Aug 10)

LSM Growth (Jul 10)

GDP Growth FY10E

Per Capita Income FY10

Population

$16.97bn

13.77%

$5.18bn

$9.03bn

$(3.85)bn

$(944)mn

$1.72bn

$455.10mn

Rs 310bn

$55.63bn

Rs 4863bn

$100.90mn

3.05%

4.10%

$1,051

170.80mn

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

21.09

2.00

1.70

9.75

PKR/Shares

111.71

181.23

42.97

36.52

33.51

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)

06-Oct-2010

06-Oct-2010

06-Oct-2010

29-Sep-2010

15-Oct-2010

15-Oct-2010

15-Oct-2010

15-Oct-2010

15-Oct-2010

15-Oct-2010

15-Oct-2010

15-Oct-2010

15-Oct-2010

15-Oct-2010

15-Oct-2010

12.83%

13.07%

13.22%

13.50%

12.72%

12.99%

13.20%

13.61%

13.71%

13.63%

13.74%

13.78%

14.24%

14.34%

14.53%

Money Market Update

Symbols Buy (Rs) Sell (Rs)

Australian $ 84.50 84.80

Canadian $ 84.80 85.20

Danish Krone 15.85 16.55

Euro 119.10 119.60

Hong Kong $ 11.00 11.30

Japanese Yen 1.042 1.068

Saudi Riyal 23.00 23.25

Singapore $ 65.40 65.60

Swedish Korona 12.90 13.30

Swiss Franc 89.35 90.35

U.A.E Dirham 23.35 23.50

UK Pound 135.10 136.10

US $ 86.05 86.35

Open Mkt Currency Rates

Billets Price Rs./Ton

150 x 150mm 52,000

125 x 125mm 52,000

90 x 90mm/ 100 x

100mm/ 105 x 105mm 52,500

80 x 80mm/ 75 x 75mm 52,850

65 x 65mm 53,700

50 X 50mm 54,200

Bloom

260 x 260mm 52,300

Billet, Grade SUP 6 & 7

100 x 100mm 69,200

75 x 75mm 69,500

Billet, Grade SUP 9

100 x 100mm 70,200

75 x 75mm 70,500

Steel Prices

Subscribe now

Tel: 92-21-5311893-6

Fax: 92-21-5388428

Email: editor@ thefinancialdaily.com

www.thefinancialdaily.com

CITIES MAX-TEMP MIN

ISLAMABAD 31°C 18°C

KARACHI 34°C 25°C

LAHORE 32°C 23°C

FAISALABAD 34°C 21°C

QUETTA 28°C 5°C

RAWALPINDI 32°C 18°C

Weather Forecast

Index Close Change

KSE 100 10,431.84 22.82

Nikkei 225 9,500.25 83.26

Hang Seng 23,757.63 94.54

Sensex 30 20,125.05 372.59

SSE COMP. 2,971.16 91.52

FTSE 100 5,703.37 23.84

Dow Jones 11,062.78 31.79

*Last Updated 20:00 PST

Global Indices

Staff Reporter/Agencies

I S L A M A B A D /

KARACHI: All the

rumours regarding MQM's

chickening out of coalition

from Pakistan Peoples

Party government came to

an end Sunday night when

Governor Sindh Dr Ishrat-

ul Ebad Khan met with

President Asif Ali Zardari

here at Aiwan-e-Sadr.He was invited by

President to Islamabad toconfer upon the ongoinggoings-on in Karachi.

According to the media,both leaders took stocks ofissues with special focuswas given to situation inKarachi.

President Zardari urgedGovernor Ebad to continuewith his official responsi-

bilities while he assured theresolution of reservationsput forward by MQM.

Media further revealedthat President assured thegovernment would go-for-ward with its coalition part-ners by adopting the dia-logues, added that PPP andMQM would go hand-in-hand in future too.

President also orderedInterior Ministry Rehman

Malik to dig-out the ongo-ing target-killing in theKarachi.

Earlier, according to thenews broadcasted all overthe media in country, Ebadhad made up his mind torelinquish governorship andin this regard he did com-pose his resignation, whichwould be submitted to thePresident, if former does

See # 11 Page 11

COALITION

SALVAGED

President rejects Ebad’s resignation

ISLAMABAD: Prime Minister SyedYousuf Raza Gilani Sunday addressedand assured the nation that no clash ofinstitutions is possible during PakistanPeoples Party term of government. Hesaid that he did not even know aboutthe rumor of the executive order forreinstatement of judges being takenback.

In his address, Prime Minister saidhe remained undeterred while reinstat-ing the higher judiciary.

"We were told that executive order,if promulgated, could invite an appli-cation of the Article 6 of theConstitution", the PM added, "but weremained undaunted and undeterred".

He also said that ignoring PrimeMinister's denial is equivalent toignoring his constitutional stature.Prime minister also expressed his con-sent to sit together with the judges toresolve all the conflicts.

Prime Minister said that ensuring

speedy justice tops his government'spriorities. "Time is testing us again",the PM said, "let us not waste time infutile efforts of survival".

He also told the nation that the gov-ernment has decided to reorganise 8state-run institutions that are operatingin financial deficit.

Addressing the nation, Gilani said"the policy of reconciliation will bringpolitical powers and state institutionscloser; with public welfare being the

focal point." Prime Minister said hehas ordered inquiry into the newsreport that caused furor so that thenation may know who tried a mid-night-assault on relations between thejudiciary and the government.

He said he denied the news reportsoon thereafter. The President tootermed it false news.

"But even then if it is not accepted,then I may remind that we are violat-ing the principles of mutual respect,

which is the soul of Constitution ofPakistan and is Parliamentary innature," Gilani said.

Gilani said being the Leader of theHouse he had announced restorationof the judges. "If he announcesrestoration of the judges, it is accept-ed. Similarly if he denies news, thenkeeping in view the stature of the posi-tion, it too should be accepted on allforums." "If false news is given

See # 11 Page 11

PM denies clash of institutionsl Gilani wants to sit with judges to iron out issues l Re-vows to reorganise 8 SOEs

Sharif blamesPresidentfor currentquandary

LONDON: PML-N leaderMian Nawaz Sharif has saidthat the President is respon-sible for the sorry-state ofaffairs of the country.

Addressing PML-N partyworkers here on Sunday,Mian Nawaz Sharif saidthat the government backedout from all its promisesand held the Presidentresponsible for breaking allpledges and promises.

He further said if the dete-riorating situation of thecountry is left unaddressedthen everyone would be

See # 6 Page 11

ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani addressing the nation on

television and radio. CM KP, CM Balochistan Sardar Aslam Khan Raeesani, PM AJK

Sardar Ateeq, CM Mehdi Shah, Raja Riaz and Pir Mazahar ul Haq are also seen. -APP

3rd Anniversary

Nationremembers

Karsaz martyrsISLAMABAD: On the eveof the third anniversary ofthe Karsaz tragedy (onOctober 18), the PPP co-chairman and President AsifAli Zardari has paid glow-ing tributes to the martyrs.

He said the tragedy was areminder that the central

See # 8 Page 11

PML unification

'Q' leadersmeet ShahbazLAHORE: Senators SMZafar and Tariq Azeem metPunjab Chief MinisterMuhammad ShahbazSharif, here Sunday.

Members NationalAssembly Chaudhry Nisar,Khawaja Muhammad Asif

See # 7 Page 11

Karachi, Monday, October 18, 2010, Zul-Qa’dah 9, Price Rs12 Pages 12

MQM wins PS-94 by-pollKARACHI: According to unofficial results, MuttahidaQaumi Movement's (MQM) candidate for the vacant seatof PS-94 Saifuddin Khalid has emerged victorious, grab-bing 91752 votes from the constituency, private televisionchannels reported Sunday.

The said seat had fallen vacant after the murder of RazaHaider of MQM, while ANP boycotted the polls. Thereport said that some 1,022 Rangers and 2,015 police per-sonnel had been deployed in the constituency, where 12polling stations were declared highly sensitive. -Agencies

Page 2: The Financial Daily-Epaper-18-10-2010

2 Monday, October 18, 2010

TV PROGRAMMES

MONDAY

Time Programmes

7:00 News

8:00 News

9:05 Subah Savere

Maya ke Sath

11:10 The Reema Show

(Rpt)

12:00 News

13:10 Faisla Aap Ka

(Rpt)

14:10 Tafteesh (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 Tonight With

Jasmeen

23:00 News

KARACHI: The rates ofschool stationery and text-books are on the rise, caus-ing immense problems forstudents and their parents, areport reveled.

A sharp rise in the rate ofschool stationery, particu-larly copies and notebookshave baffled parents,belonging to low-incomefamilies. This price hike iswell-timed with the begin-ning of new academic ses-sion of intermediate. It islearnt some booksellers areopenly cheating the inno-cent students by artificiallyincreasing rates of text-books of private publishers.

In these days classes offirst year intermediate arejust taking start in the col-leges of Karachi and stu-dents are rushing to mar-kets for purchasing theirsyllabus, particularly to"Urdu Bazaar" which is themain market of Karachi foreducational items.

The government is pro-viding textbooks to newstudents of higher second-ary education studying ingovernment-run institu-tions. However, profitmafia has devised anotherinnovative method of fleec-ing students through raisingthe rates of notebooks. A

raise of Rs5 to Rs10 ismade in each notebook,depending on its size. Themain affectees of this situa-tion are students of govern-ment colleges, belonging tolower middle class, whoseparents have already beenfacing acute problems dueto inflation.

Yousaf, a student of firstyear told PPI at UrduBazaar that ongoing situa-tion is proving very hardfor his family to bear hiseducational expenses. Hesaid that he has purchased ajournal by Rs55, which hehad purchased by Rs35 afew months ago.-PPI

Textbooks priceson the rise: report

KARACHI: A well edu-cated and motivated youthis the asset of any nation.The government is wellsensitised to their issuesand therefore steps arebeing adopted to createpost-education opportuni-ties for them.

Advisor to Sindh ChiefMinister for InformationSharmila Faruqui said thiswhile awarding goldmedals to the talentedyouth at an All PakistanMemon FederationAnnual AwardDistribution Ceremonyheld at Memon Complexground, OppositeGovernment Islamia Artsand Commerce College.

She appreciated the role

of All Pakistan MemonFederation in providingquality Education Systemfor the prosperity ofyouths by empoweringeducational institutions totransform them into con-temporary learning organ-izations.

Later on, SharmilaFaruqui awarded goldmedals to four highly tal-ented girls of Memoncommunity for brilliantperformance in education.

Earlier SharmilaFarooqui condemnedtorching of a vehicle ofDawn media group in thewee hours by someunknown elements, hereon Sunday.

"A proper security plan

for media houses andmedia personnel should bechalked out in consulta-tion with the stake holdersto ensure safety and secu-rity to journalists duringfield duties," sheobserved.

Sharmila asked CCPOKarachi to ensure securityand proper co-ordinationto media personnel dis-pensing responsibleduties. She reiterated toextend maximum securityto media personnel inorder to promote mediaindependence and func-tion.

She also directed CCPOKarachi to inquire into thematter and arrest theinvolved culprits.-PPI

Educated youth assetof nation: Sharmila

KARACHI: Sindh HomeMinister Zulfiqar Mirzahas asked the Capital CityPolice Officer (CCPO),Karachi, to launch animpartial enquiry into thekillings in Karachi andarrest the culprits.

According to a statementof the office of the HomeMinister issued hereSunday, he directed theRangers and Police toincrease patrolling inaffected areas and conductsnap checking to preventfurther incidents of firing.

Moreover, ban may also

be implemented strictly onaerial firing, and exhibitionof arms and extra-ordinarysecurity may be taken forthe safety of the generalpublic and particularly inOrangi Town, it added.

He further directed thepolice and rangers to takeeffective measures and impar-tial action may also be takenwherever necessary to controlthe law and order situation.

In addition, intelligencenetwork may also be madeeffective to keep a vigil onanti-social elements, thestatement said.-APP

Mirza ordersimpartial probe

Karachi Target Killings

MONDAY

Time Programmes8:00 Agenda 360 (Rpt)

9:00 News

9:15 Pehla Sauda

10:00 News

10:15 Bazaar

11:00 News

11:05 Ghar Ka Kharch

12:00 News

12:05 Agenda 360 (Rpt)

13:00 News

15:15 Power Lunch

14:00 News

15:02 Akhri Sauda

15:30 Amnay Samnay

(Rpt)

16:15 Karobari Dunya

17:05 Ghar Ka Kharch

18:05 Chai Time

19:00 News

19:05 Tax Time

19:30 Mang Raha Hai

Pakistan

20:00 News

20:05 Islamabad Say

21:00 Pakistan Aaj Raat

22:00 News

22:05 Doosra Pehlu

23:00 News

23:05 Uff Tv (Rpt)

23:30 Dilkash Pakistan

(Rpt)

ISLAMABAD: Federal Minister for Water and Power Raja Pervaiz Ashraf hassaid that the government has to face a deficit of Rs240 billion annually in thepower sector.

He expressed these views while addressing the appointment letter distributionceremony at Wapda Staff College.

He said despite unfavorable condition we managed to bring 1700MW into thesystem and 1200MW would be inducted in next four months.

He said that work on Diamer Bhasha dam would start from next month, adding,the country has the capacity to produce 19,000 megawatts of electricity.-Online

Powersector

deficit atRs240bn/yr

KARACHI: Ranger personnel standing alert to avert untoward incident near Aligarh Colony duringthe by-elections of Orangi Town PS-94.-Online

Qaimconcernedover target

killingsKARACHI: Sindh ChiefMinister Syed Qaim AliShah has taken notice ofthe killings of over 27innocent citizens in firingincidents in different areaof the city and ordered IGPSindh and DG RangersSindh to take action againstpeople involved in theseincidents.

He directed them toincrease in number ofpolice contingent andrangers in affected areas.The Chief Minister direct-ed Sindh police and rangersto ensure safety to the peo-ple and their properties.

Qaim asked all groupsand citizens to maintainpeaceful environment andshow cohesion.-APP

KARACHI: Trade advisor of Thai government ArifSuleman, hosted a dinner to welcome newly arrived

Consul General of Thailand Udom Sapito. Photoshows officials from Thai Airways along with diplo-mats from Qatar, Switzerland, Sri Lanka, Indonesia,

Saudi Arabia, Bahrain, Korea, Malaysia andThailand with host and other guests.-Staff Photo

Education gets more expensive

News regarding the powersector deficit printed onSaturday (16-10-2010)

had a typographical errorin which power sector

deficit of Rs 240 billionwas mistakenly printed

as Rs 240 million.

CORRIGENDUM

Ministercondemnsmurder oftwo boys

KARACHI: The MinisterKatchi Abadis RafiqueEngineer while stronglycondemning the incident ofkidnapping and murder oftwo innocent young boys,said that people involved inthis heinous crime in what-ever political cover, thegovernment would dealwith them with iron hands.

Sindh Minister for KatchiAbadis & SpatialDevelopment EngineerMuhammad RafiqueAdvocate visited the resi-dences of the two youngboys of Lyari GulMuhammad Lane and hasoffered his heartfelt condo-lence with the Abdul Latifand Khuda Bux fathers ofvictims Shaukat & Sulemanwho were kidnapped fromUsmanabad and were bru-tally killed by the terroristsand dumped their bodies inNazimabad.-APP

Page 3: The Financial Daily-Epaper-18-10-2010

3Monday, October 18, 2010

BANGKOK: Asian currencies completed aseventh weekly advance, led by the Singaporedollar, as relatively high yields and the world'sfastest economic growth spurred demand forassets in the region's developing nations.

Equity funds investing in Asia excludingJapan have taken in more than $1 billion in allbut one of the past four weeks, according todata from EPFR Global.

The Singapore dollar climbed 1.2 per cent lastweek to S$1.2965, its best performance in sixmonths. India's rupee climbed 0.8 per cent to44.10 after global funds pumped $1.8 billioninto the nation's equities in the first four days ofthe week. Thailand's baht strengthened 0.8 percent to 29.82, an 11th straight weekly gain.

Central banks in India, Malaysia, South Korea,Taiwan and Thailand have raised interest ratesthis year to contain inflation as their economiesimprove. Their counterparts in the US and Japanby contrast have near-zero rates and are buyingassets to inject funds and support growth.

The Monetary Authority of Singapore said lastweek it will steepen and widen the band inwhich its dollar trades against a weighted basketof currencies, seeking a "modest and gradual"advance. The Singapore dollar reached $1.2893

versus the greenback after the bi-annual policyreview, the strongest level since at least 1981.

Asia's developing economies will expand 9.4per cent in 2010, compared with growth of 2.7per cent in advanced countries, the InternationalMonetary Fund forecast on Oct. 6.

The yuan rose to the strongest level since1993 on Friday on speculation American law-makers will step up calls for faster appreciationafter the US said its trade deficit with Chinawidened to a record $28 billion in August. TheUS Treasury Department said its twice-annualreport on international currencies will bedelayed, including China's, while citingprogress in the acceleration of the yuan's rise.The currency has appreciated 0.4 per cent thisweek to 6.6412. Malaysia's ringgit climbed 0.8per cent to 3.0855 per dollar last week, con-tributing to this year's 11 per cent advance. Thecurrency touched a 13-year high this week, asdid Thailand's baht. The baht is Asia's best-per-forming emerging-market currency of 2010with a 12 per cent gain.

Elsewhere, Taiwan's dollar jumped 1 per centfrom a week ago to NT$30.793. The Philippinepeso rose 0.5 per cent to 43.185 and Indonesia'srupiah was 0.2 per cent stronger at 8,913. -Agencies

Asian currencies

Mostly up for 7th wk,led by Singapore $

NEW YORK: The good newsfor the dollar, which hit a 2010low this week, is that sellingmay slow a bit in the weekahead, perhaps even enoughfor a mild correction.

The bad news -- at least fordollar bulls and developingcountries struggling with cur-rency appreciation -- is thatany dollar gains look to be buta brief pause for breath in anotherwise steady march lower.

The most proximate cause ofdollar weakness has been USmonetary policy, and with theFederal Reserve all but promis-ing to turn on the printing pressagain before the year is out,that isn't likely to change.

That's driving the dollarlower and putting pressure onChina and other emerging mar-kets, which intervene to pre-vent their own currencies fromrising too quickly.

But uncertainty about thesize and scope of any addition-al Fed easing mean it may betime for investors to ease intowait-and-see mode, watchingeconomic data for any surpris-es but otherwise waiting for theFed's policy meeting inNovember.

Since September the dollarhas lost 8 per cent against abasket of currencies, about 10per cent against the euro andaround 11 per cent against theAustralian dollar -- which insome ways is the mirror imageof the US currency with itshigh interest rates, a centralbank worried about inflation,and a booming economy withstrong trade links to China andIndia.

"I do think we've reachedextreme levels in the dollar andquite a lot of the Fed's expect-ed quantitative easing is pricedin," said Boris Schlossberg,director of research at GFT

Forex in New York.EURO A BIT STRETCHEDMark McCormick, a strate-

gist at Brown BrothersHarriman, said the dollar looks

particularly stretched againstthe euro, which has untilrecently tended to lose momen-tum above $1.41.

Traders said a move below$1.3955 would likely triggersome automatic sell orders,and CitiFX strategist said thatcharts suggest support levels

around $1.3819 and then$1.3593, the 55-week movingaverage.

McCormick said theAustralian dollar, which soaredabove parity with the green-back Friday for the first timesince it was floated in 1983,may also be due for some prof-it-taking.

Sterling, however, looksmore attractive, he said, as sig-nals from the Bank of Englandsuggest policymakers there areincreasingly dubious about fol-lowing the Fed's lead andlaunching a second round ofquantitative easing,

"I would short euros in theshort term, consider takingprofits on the high-yielders,and go long the pound," hesaid.

Some analysts though, aren'teven willing to bet on a tempo-rary lull in dollar selling.

"If we are going to get a cor-rection, we didn't see muchevidence of it today," saidBNY Mellon strategistMichael Woolfolk. "We got amodest bout of profit-takingbut it was so shallow that onehas to draw from this a likelyreturn to dollar selling in thedays ahead."

CitiFX technical strategistsexpect the euro to make a runat $1.4350 in the comingweeks, followed by $1.4720.

The dollar's already at a 15-year low around 81 yen, andtraders said the threat of anoth-er round of Bank of Japanintervention is the only thingkeeping the greenback fromfalling to a record low beneath80 yen.

Woolfolk said uncertaintyabout the yen is a main causeof dollar weakness, "as itencourages people to use thedollar as a funding currency forcarry trades." -Reuters

Greenback weekly outlook

Dollar vulnerablebut selling may slow

NEW YORK: Oil prices fellnearly 2 per cent in light,volatile trading on Friday, post-ing their first weekly loss in fourweeks, as options expired andthe dollar rose, sparking profit-taking ahead of the weekend.

Oil prices rose early in thesession after US FederalReserve Chairman BenBernanke signaled that the cen-tral bank would likely pumpmore money into the saggingeconomy.

But prices weakened later onthe view that any such quantita-tive easing was already pricedin the market and as the dollarrose on profit-taking, withtraders saying its recent declinewas overdone. At the same time,crude oil options trading playskicked in, pressuring prices.

"The oil slide started as thedollar continued to rise. But, asNovember crude penetrates var-

ious strike prices, it causestraders to sell futures to protectagainst expiring option expo-sure," said Tom Bentz, broker atBNP Paribas CommoditiesFutures Inc in New York.

On the New York MercantileExchange, crude for Novemberdelivery settled down $1.44, or1.74 per cent, at $81.25 a barrel,after trading from $80.75 to$83.33. By 1945 GMT volumewas around 661,000 lots. For theweek, front-month NYMEXcrude fell $1.41, or 1.71 per cent.

At the start of the day, putoptions -- contracts that grantthe right to sell at a specificprice by a certain date -- wereconcentrated on the $82, $81and $80 levels.

"The market was attemptingto push up to $85, and we got tonear $84.50 earlier in the week,and (then) the market turnedback down," said Gene

McGillian, an analyst atTradition Energy in Stamford,Connecticut. He added that, asthe dollar gained on Friday, con-cerns about oil fundamentalsbegan to weigh on the market.

"Because of our poor underly-ing fundamentals, the longs inthe oil market are very kind ofskittish about the direction ofthe market, he added."

In London, ICE DecemberBrent crude fell $1.75, or 2.08per cent, to end at $82.45, aftersliding to a low of $81.95. For theweek, front-month Brent crudefell $1.58, or 1.9 per cent, its firstweekly loss in eight weeks.

Oil investors also raised ques-tions about the size and the tim-ing of the widely expected pur-chases of government debt bythe central bank in a secondround of quantitative easingmeasures. The unease promptedprofit-taking.-Reuters

Oil down for 1st weekin four on options, USD

Bernanke signals more easing to avoid deflation

NEW YORK: US cottonfutures sank from a record peakon Friday as speculative fundstook profits, but analysts saidthe market's three-month rallycould resume next week if No. 1consumer China sees the dropas a cue to buy.

Cotton prices on ICE FuturesUS and China's ZhengzhouCommodity Exchange havesoared into uncharted territory,stoked by strong demand andtight global supplies.

A fall in the dollar to an eight-week low galvanized the rallyearlier on Friday but a recoverylater by the greenback helped toblunt cotton's advance.

The key December US cotton

contract hit an all-time peak of$1.198 per lb within minutes ofopening at 0100 GMT but itcould go no higher, closingdown by its 5.00-cent daily limitat $1.0987 per lb.

The key May 2011 cottonfutures on the ZhengzhouCommodity Exchange rose 275to finish at 24,305 yuan pertonne, having hit a lifetime peakof 24,680 in Friday's session.

"I think (we saw) a naturallyoccurring correction," RonLawson, cotton expert at bro-kerage logicadvisors.com inSonoma, California, said.

"All the symptoms we lookfor in terms of a top, we're see-ing today," said Sharon

Johnson, cotton specialist forFirst Capitol Group financialadvisors in Atlanta, Georgia,referring to the market's rapiddrop from the record high.

Volume traded hit around33,950 lots, 65 per cent abovethe 30-day average at 20,567lots, preliminary ThomsonReuters data showed.

A weekly report by the USCommodity Futures TradingCommission showed funds' netlong positions in cotton had fall-en slightly. Noncommercial netlong positions fell to 35,020lots, from 35,875 lots. Managedmoney accounts' net long stand-ing was at 44,026 lots, from47,120 lots. -Reuters

NY cotton slips after hitting record top

NEW YORK/LONDON:Cocoa futures slid 2.6 per centon Friday, closing with theirbiggest daily percentage loss inmore than two months, andmost soft commodities also fellas investors took profits aheadof the weekend.

Sugar and arabica coffeefutures fell, but the slide for UScocoa was exacerbated whenthe pound turned lower againstthe dollar.

ICE December cocoa, tradedin New York, fell $75 or 2.6 percent to finish at $2,805 pertonne, while Liffe March cocoain London finished down 49pounds at 1,877 pounds a tonne.

Data released after marketsclosed on Thursday showedNorth American cocoa grind-ings rose 1.71 per cent in thethird quarter from a year earli-er, at the lower end of estimatesgathered by Reuters ahead.

Raw sugar futures tumbled,seeing the first day of losses inseven sessions, as dealersgrabbed profits after the marketmoved up to eight-month highsthis week. Still, the overall out-look of the market looked bullishas physical supplies remainedtight, demand was steady andtop grower Brazil continued tosee shipment delays.

Sugar supplies were expectedto remain tight into the firsthalf of 2011, said Nick Penneyof Sucden Financial Sugar toldReuters. He said benchmarkICE raw sugar futures couldsoon probe near the Feb. 1, 29-year high of 30.40 cents a lb.

Brokers and dealers saidactivity on the physical marketwas slack at current high prices.

ICE benchmark March rawsugar futures tumbled 0.88 centor by 3.1 per cent to finish at27.06 cents per lb, but closingthe week up 2.8 per cent.

London December whitesugar finished down $15.50 at$696.20 per tonne.

Arabica coffee finished weakbut within sight of last month's13-year high of $1.9865 assupplies of high quality arabicabeans remained tight. TheDecember contract, however,failed to reach the technicalresistance level at $1.90 and asthe dollar turned higher andinvestors grabbed profits.

ICE December arabica coffeefutures fell 1.20 cents to closeat $1.8640 per lb, but closingthe week up 2.3 per cent, thebiggest weekly percentage gainin six weeks. Liffe Januaryrobusta coffee settled flat at$1,682 per tonne. -Reuters

Sugar underpinned bytight supply outlook

Soybeansslips but up4.4pc for wk

KANSAS CITY: US soybeanfutures ended lower on Fridayas late profit-taking erasedearly gains, yet still ended theweek more than 4 per centhigher on strong demand fromUS domestic processors andexporters.

Spot soybeans rose overnightto $12.04-1/4, the highest spotprice on continuous charts in14 months, but prices waned asFriday's session advanced witha strengthening dollar andsome pre-weekend profit-tak-ing hitting soy and corn mar-kets.

US wheat prices ended high-er, meanwhile, with backmonths soaring on technicalbuying. Several 2012 contractsset contract highs as traders puton bear-spreads, buyingDecember 2012 wheat and sell-ing December 2011 on expecta-tions that storage rates fordeliverable CBOT wheat willrise.

Chicago Board of Trade spotDecember wheat ended up 3-3/4 cents at $7.04-1/2;November soybeans ended thesession off 3-1/2 cents at$11.85, while December cornclosed down 4-1/4 cents at$5.63.-Reuters

Copper upfor 5th wk

on Fed viewNEW YORK/LONDON:Copper prices rose for a fifthconsecutive week on Friday,with strong regional manufactur-ing data in the United States andexpectations of further monetaryeasing from the US FederalReserve bolstering the metal'sdemand outlook.

Copper for December deliveryon the COMEX metals divisionof the New York MercantileExchange rose 2.35 cents to set-tle at $3.8390 per lb.

Trading ranged from $3.7945to $3.8645, a touch belowThursday's peak at $3.8675,which marked the highest levelfor the third-position futurescontract since July 7, 2008.

On the London MetalExchange, benchmark copperwas unchanged at $8,400 a tonneby the close. It touched a sessionhigh of $8,484, just belowThursday's peak of $8,490 atonne, another high dating backto July 2008.

Copper prices have ralliednearly 40 per cent since theirJune lows and were up morethan 1 per cent this week.

Copper has benefited from atightening market, reflected inLME copper warehouse stocks,which are down more than 30per cent since February, whenthey touched 555,000 tonnes.Latest data showed LME stocksdown 475 tonnes at 371,025tonnes.

However, copper inventoriesin warehouses monitored by theShanghai Futures Exchange rose9.9 per cent from a week earlier,the exchange said on Friday.

Tin shed $200 to end at$26,750 per tonne, down fromThursday's record $27,338.50.Reinforcing high prices werethree large holdings of LMEstock warrants and cash con-tracts.

Aluminum closed down $33 at$2,377 a tonne.

Zinc peaked at $2,451 a tonne,its highest since late April,before ending up $9 at $2,424.

Lead wound up at $2,425 atonne. It had been bid at$2,411 at Thursday's close.Nickel dropped $270 to$24,035. -Reuters

NEW YORK: Gold fell onFriday, snapping a two-dayrecord-setting rally, as the dollarrose and Fed Chairman BenBernanke offered few newdetails on further economicstimulus which promptedinvestors to take profits.

In a day of volatile trade and ahost of mixed market signals,bullion is still on track to endhigher for an 11th straight week,driven by a hardening view thatthe Fed will resume buying gov-ernment debt to stimulate theeconomy.

On Friday, Bernanke deliv-ered his most explicit signal yetthat the US central bank is like-ly to use easier monetary policyas soon as its next meeting inNovember. But he failed to offerthe details that some goldinvestors are craving to sustainthe rally.

"The question is for howmuch longer the market is pre-

pared to run just on the quantita-tive easing story. I think themarket at these levels wants tosee the facts before committingadditional capital to the upside,"said Saxo Bank senior managerOle Hansen.

Gold rose to within two dol-lars of Thursday's all-time highat $1,387.10 an ounce on aknee-jerk rally immediately fol-lowing Bernanke's remarks,which initially hit the dollar.

But the metal later weakenedas the dollar rebounded sharplyfrom a more than eight-monthlow versus the euro as traderssaid the greenback's recentdeclines were overdone.

Spot gold was trading down0.7 per cent at $1,366.50 anounce at 1935 GMT.

US gold futures for Decemberdelivery settled down $5.60 at$1,372. COMEX gold volumewas heavy during Friday's correc-tion at about 190,000 lots, 34 per

cent above its 30-day average.Gold investors opted to lock

in profits ahead of the weekendon a day when financial marketswere driven by myriad diversefactors.

Gold has climbed some 25 percent this year as the prospect offurther quantitative easing in theUnited States undermined thedollar and prompted investors tobuy the precious metal as a hedgeagainst currency depreciation.

S t r o n g e r - t h a n - e x p e c t e dSeptember US retail sales andmanufacturing activity in NewYork State on Friday reducedinvestor anxiety somewhat andtriggered profit-taking in goldwhich is viewed as a safe haveninvestment, analysts said.

Among other precious metals,silver fell 1.5 per cent to $24.25,platinum slipped 1 per cent to$1,688 an ounce and palladiumwas trading down 1.7 per cent at$587.50 an ounce. -Reuters

Gold retreats on dollarrise in mixed markets

TORONTO: The Canadian dol-lar came close to reaching paritywith the greenback on Friday butthen retreated as US FederalReserve Chairman Ben Bernankeoffered no new details on mone-tary policy easing, leadinginvestors to bet the US dollar wasoversold.

Bernanke said that high unem-ployment and low inflation pointto a need for more stimulus, buthe failed to offer specifics on theUS central bank's next step.

"There was a meaningful rea-son why he left a lot of that infor-mation off the table and the mar-ket speculates now that it'sbecause the Fed itself can't reacha consensus in terms of how topush forward with special quanti-tative easing measures," saidJack Spitz, managing director offoreign exchange at NationalBank Financial.

"That being said, the market ispulling back some of its shortdollar positioning ... given thefact that that boat is particularlyfull right now and markets thatare overextended have a tenden-cy to be subject to relatively sig-nificant price swings."

The expectation of quantitativeeasing by the Fed -- essentiallycreating new money to buy assets-- has been driving the US dollarlower and higher-yielding cur-rencies, such as Canada's, higher.

The Canadian currency initial-ly rose as high as C$1.0012 ver-sus the US dollar, or 99.88 UScents, following Bernanke'sspeech and soft US inflation data-- a key concern for the Fed --before it pulled back.

The Canadian dollar closed theNorth American session atC$1.0118 to the US dollar, or98.83 US cents, more than half a

penny down from Thursday's fin-ish of C$1.0060 to the US dollar,or 99.40 US cents. It ended theweek 0.05 per cent lower, cap-ping six straight weeks of gains.

Market focus is on the Bank ofCanada interest rate announce-ment on Tuesday and itsMonetary Policy Report onWednesday, though many expectthe central bank to stand pat onrates for the rest of this year.

Camilla Sutton, chief currencystrategist at Scotia Capital,stressed, however, that theCanadian dollar is not currentlytrading on its own fundamentals.

"It's really not a CAD story likeit was in the spring when wewent to parity, this is very much aUS dollar weakness story," shesaid. "As soon as the US dollarweakness story fades that willimmediately fade the rally inCAD." -Reuters

C$ flees parity as USD recovers

Sterlingsurges to

9-mth highagainst dollarLONDON: Sterling rose onFriday as Federal ReserveChairman Ben S. Bernanke saidadditional monetary stimulus,or so-called quantitative easing,may be warranted in the US.

The pound rose to itsstrongest level since Januaryagainst the dollar afterBernanke said additional QEmay be warranted. "Therewould appear -- all else beingequal -- to be a case for furtheraction," he said in the text ofremarks given at a Boston Fedconference.

Further quantitative easing"makes me fairly queasy,"Lomax, the UK central bank'schief of monetary policy from2003 to 2008, told a Londonconference organized by HSBCHoldings Plc. "What exactlydoes it do? It pushes up assetprices, but how effective is it instimulating domestic demand?We really don't know."

The pound gained 0.6 percent to 87.44 pence per euro,paring its fifth weekly declineto 0.2 per cent. It was 0.2 percent stronger at $1.6041, afterclimbing to its strongest levelsince Jan. 29.

Sterling has fallen against theeuro in the past month amidspeculation a slowing recoverywill prompt the Bank of Englandto keep its benchmark interestrate at a record low of 0.5 percent. The pound has also beendriven down by concern that thecentral bank will add to its bond-purchase plan of 200 billionpounds just as the EuropeanCentral Bank exits its own stim-ulus. Britain's currency has lost4.8 per cent in 2010 against itsdeveloped-country peers.

The Bank of England shouldstart withdrawing its"extreme" measures, formerpolicy maker DeAnne Juliussaid in an interview with theYorkshire Post. -Agencies

USD netshorts dipsto $29bn:

CFTCNEW YORK: Currency spec-ulators trimmed bets againstthe dollar in the latest week butremained heavily against theUS currency, data from theCommodity Futures TradingCommission showed onFriday.

The value of the dollar's netshort position slipped to $29billion in the week ended Oct.12, according to CFTC andReuters calculations.

That compared to a net shortof $30.5 billion in previousweek, the biggest bet against thedollar since at least June 2008.A short position is a bet that acurrency will decline in value.

Speculators trimmed bets infavor of the euro, yen andAustralian dollar, though longpositions in all three remainedelevated. The dollar has beenunder heavy selling pressure forweeks because markets expectthe Federal Reserve to startpumping new money into the USeconomy next month to boost afaltering recovery.-Reuters

Page 4: The Financial Daily-Epaper-18-10-2010

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.

Boostingyield thru

land reformsThe Muttahida Qaumi Movement (MQM)

has submitted a land reforms bill in theNational Assembly secretariat proposing lim-its on landholdings. The bill proposes thateach family should be allowed to own a max-imum of 30 acres irrigated or 54 acres aridland. The bill will not apply to the FederallyAdministered Tribal Areas (FATA).

The MQM says, “The Redistributive LandReforms Bill, 2010, is aimed at the eradica-tion of hereditary ownership of agriculturalland and its redistribution among tillers.” Thebill proposes all land within the territoriallimits of provinces, whether owned or leasedor occupied or tenanted or encumbered ormortgaged with or without possession by anyperson, be resumed in the name of the provin-cial government. Since the land is a freebounty of nature and state is recognised as itsowner, under the proposed redistribution ofland, each landless family the cultivator ortenant or small land owner shall be grantedland out of the land that has been acquired bythe state. Priority would be given to landlesstillers followed by landless tenant farmersand small landowners.

Ironically various land reforms undertakenin Pakistan failed in ensuring fair distributionof land. A new set of elite emerged inPakistan soon after independence havingulterior motives to create constituencies forthemselves. This resulted in an endless plun-der of stateland by civil and military bureau-cracy, creating absentee landlords, who arenever interested in improving agriculture pro-ductivity.

Added to this has been colonisations withthe construction of barrages and granting themost fertile and large tracts of land to influen-tial absentee landlords, who earn windfallprofits through the sweat and labour of thoseworking on their land. The feudal lords assertpower on the basis of land and also keep theiragriculture income free of tax, while most ofthe rural population lives below the povertyline. India had got rid of this culture soonafter independence. Can yet another round ofland reforms bring about any change?

The probability is that feudal lords will trytheir best to sabotage the bill to continueexploiting the masses. The process of bring-ing any change often becomes very slow asthe groups at stake try to derail it. The timehas come to convince all, that the collectivewellbeing lies in following good governanceand supremacy of law. The objectives can'tbe achieved without abolishing the jagir-darana nizam. Pakistan is still ruled by a fewfamilies of elites called Waderas inSindh/Balochistan, Chaudhris/Maliks inPunjab, and Khans in Khyber Pakhtunkhwa .

It’s time things changed for good, for all,and forever.

4Saturday, October 16, 2010

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

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The Financial Daily InternationalVol 4, Issue 74

Think back acentury andnews needs

and news methodswere completelydifferent.

Just think that thefirst airmail flight between Britain andHong Kong did not land until 1936.And yet today at my home in London Iget a rich and vibrant stream of news,photographs, stories and gossip fromAsia into my home via Twitter,Facebook, Google Reader and then allthe more long-established methods ofjournalism. It is a cornucopia.

But the problem with any over-flow-ing horn is that it is really only scarcitythat creates the awareness of value.

And in fact, the profession of journal-ism is losing both value and respect.

The latest Gallup poll showed a record-high 57 per cent of Americans sayingthey had little or no trust in the massmedia to do what the media has alwaysproclaimed to be its primary mission - toreport fully, accurately and fairly.

Instead people look to the friends - theircommunity - for information, for valida-tion, for argument and for illumination.

What is great about 2010 is that tech-nology has created a completely newconcept of community. And it has giventhat community new powers to informand connect.

Facebook status updates become anewsfeed created by people I know andeven often like.

A Twitter feed is a news service offacts, opinions and referrals from anever-vigilant army of people with simi-lar interests and proclivities.

They alert me to news and articlesthat are almost guaranteed to fit myinterests because we are a group thathas formed around each other.

And it is a self-correcting group, whereeach of us has the ability to fire, replaceand refine the membership at will.

No reader selected me to be editor-in-chief of Reuters - I was selected bythe corporation to lead the news serv-ice in its interest.

Conversely, no corporation selectedthe people whom I follow on Twitter,no board set my blogroll, no executivecommittee befriended my Facebookpals. I did those things.

What technology has done is it hasupended the power equation to givecontrol to the end consumer.

The beauty of that is obvious - control

is always satisfying.The danger is that without care it

becomes an information universe that istoo hermetically sealed.

The days of the all-powerful paternalis-tic editor may be dead, but what can'treplace them is the era of people only hav-ing their preconceived ideas reinforced.

What's needed is a new model, onethat combines push and pull.

What's needed is a publishing modelthat embraces both the professional-ism of the journalist and the power ofthe community.

The great press critic A. J. Lieblingwrote that freedom of the press belongsto the man who owns one. Today's tech-nology means that the means of produc-tion and the means of distribution actu-ally belong to anyone with access to anInternet onramp.

If you ask the public, "What will youpay for?" The answer is certainly a yesfor tools (ipad, iphone, blackberry,android). The answer is certainly a yesfor broadband and access.

But what about the content? And whatabout those who create that content?

Far too often the answer is "no".I know even when I last lived in Hong

Kong 15 years ago this was an issue theFCC itself had to wrestle with - what wasthe ideal ratio of full-time correspondentmembers to journalist members to asso-ciate members to corporate members.

I guess from seeing the special pro-motional offer the club has been run-ning for new correspondent and jour-nalist members that this is still an issue,both because there are fewer peoplewho fit the bill, and also because thosewho do can't necessarily PAY the bill.

I'm lucky to be leading a journalisticorganisation 3,000 professionals strong- that's an extraordinary figure at a timewhen other organisations have beenshedding staff.

By comparison, in 1987, the year Ijoined Reuters in Hong Kong and the yearI first became a member of this club, I wasone of 1,581 journalists in the company.

We've survived and thrived by changing.We aren't the agency we once were;

tomorrow we will be even more differ-ent from today.

My job is to ensure that survival andto ensure that the journalistic traditionof yesterday melds with the socialmedia ethos.

Let's start by thinking back two years.The photographs of distraught, con-

fused and angry bankers leaving their

offices jobless helped symbolise theseismic shifts in the financial system 24months ago.

During the same period, thousands ofjournalists lost their livelihood too asthe profession and craft changed almostbeyond recognition.

If we have learned anything fromthese past two years, it has been thatpure facts are not enough.

Pure facts don't tell enough of thestory; pure facts won't earn their way.

The arguments about whether the fac-tual seeds of the financial crisis hadbeen adequately reported are ultimatelymeaningless. The facts were there. Butthey weren't put together in a way thatwas compelling enough or powerfulenough to change the course of events.

We've been drowning in facts, andthat deluge continues to threaten.

How different from October 1851when Julius Reuter set up his pigeonand telegraph shop, sending out facts toa world starved for them.

Today, it's context, connectedness andcommunity that matter.

That's why the traditional agency or"wire" pouring out a never-endingstream of "more" can't be the answer.

That's why we must be a service toour customers and to our readers.

That's why this is the age of thepublisher.

Journalists who understand this willsurvive. Those that don't will becomeirrelevant.

A publishing ethos is not defined bythe number of stories we deliver. It isdefined by our ability to keep ourclients tuned in and returning. We willdo that with a heightened knowledge ofwhat they need, and with focusedbreaking news and insight that is fast,relevant, actionable and engaging.Deploying all our multimedia assetsallows us to tell stories compellinglyvia packages of interlinked news andinformation. And we will enable clientsto connect to each other, and to us.

I'm as excited about content that getscreated in a chatroom by journalists andreaders interacting together as I amabout a good story being pushed out.Sometimes I'm even more excitedbecause the intelligent interactionbetween people who all know some-thing about a topic can create a muchsmarter product than any one writerstruggling at the computer alone.

Is it journalism?Sometimes it is pure journalism.

Sometimes it's commentary. Sometimesit's just a sharing of ideas or the anno-tating of a graphic.

But whatever you call it, it is an intel-ligent service between the journalistand the customer and that's somethingwe should be aiming for.

Why? Because like the "pure" jour-nalism of old, it helps makes sense ofthe world.

Why? Because it is news, data, con-tent and information that is actionablebecause it adds insight to transparency.

It's the community that interacts withinformation and in that interaction cre-ates yet more and better content.

It's the context and analysis aroundthe news that helps people make betterdecisions, helps them do their jobs bet-ter, and gives them an edge in makingsense out of the confusion around us.

It is also the humility to know that theold one-way relationship between edi-tor and audience has no place in theworld any more.

There's huge learning to be had fromthe audience.

Some of it comes from listening to itsexpertise. Some of it comes fromwatching its behavior. Much of it comesfrom enabling the conversation you getwhen you combine facts, data, journal-ism, analysis and fact-based opinion ina really smart way.The rules of today's journalisticworld are these:n Knowing the story is not enough.n Telling the story is only the begin-ning.n The conversation about the story isas important as the story itself.n The more you try to be paternalisticand n authoritative, the less people willbelieve you.n The more you cede control to your audi-ence, the more people will respect youn The more you embrace new technol-ogy as a platform, the more your ideaswill compete.n The more you abandon the facelessand characterless, the more you can setthe agendan The more you look beyond the storyfor connections, the more value youwill have.

And if you have value and no one elsedoes, you will get paid.

Simple? No.But it is exciting and transforming.-

ReutersWriter is Editor-in-Chief of Reuters

news since January 2007.

Changing Journalism

Sharmila FarooquiAdvisor to CM Sindh

on Information

"The attack was not on me,the attack was on what I repre-sent. It was an attack ondemocracy and on the veryunity and integrity ofPakistan", said Benazir Bhuttoon October 18th of 2007 bare-ly surviving an attacked. Thekillers were adamant and tookmartyred her on December27th the same year. Thoughshe had been assassinated thelegacy continues.

Hundreds of thousands ofpeople thronged the Karachiairport on October 18th, for aheroic welcome to their cher-ished leader, who was return-ing home after years of exile. Itwas Benazir Bhutto, the ex-prime minister of Pakistan. Shefought the two dictators whilein exile. But as the very exis-tence of Pakistan was in dan-ger due to the anti-democraticpolicies of Musharraf, Benazirdecided to end her exile to leadthe democratic forces from thefront. It was difficult for theforces of extremism to witnessher arrival in the country. Theattack on her convoy in whichalmost 200 people died, is agrim reminder of that intoler-ance. While briefing the mediaafter the attack, she said that itwas not an attack on her, but anattack on democracy, and theunity and integrity of Pakistan.

Benazir Bhutto challengedthe forces of dictatorship andextremism. The restoration ofdemocracy and ridding thecountry from the clutches ofdemocracy were her articles offaith. She was the hope of

masses, the downtrodden andthe marginalised. Benazir diedon December 27, 2007, whileshe was leading a politicalrally in Rawalpindi. All hopesof the extremists to bury herideals with her physical oblit-eration have been smashed byher followers, who havevowed to continue the strugglespearheaded by her for democ-racy and rule of law inPakistan. Asif Ali Zardari,Benazir's husband and now thepresident of Pakistan has fol-lowed her footsteps to accom-plish her ideals. He has anunshakable belief thatPakistan should embrace themodern world with the sameconfidence and courage thatShaheed Mohtarma had.Zardari believes in democracy,freedom and openness, not asa slogan but as a way of life.After Benazir's death, Zardariremains the most potentPakistani voice for liberalism,tolerance and change.

President Zardari's two yearsin office are marked by theaccomplishment of Benazir'smission and ideals. Followingthe reconciliation approach ofBenazir Bhutto and using hiswisdom and political acumen hehas successful developed con-sensus on those issues whichwere previously shelved due tothe lack of consensus i.e. NFCAward. Since assuming office asa result of the exit of Musharrafwhich he made possible usinghis political vision, Zardari hasused conciliatory approachtowards his political opponentsto get their support on importantnational issues. It is easy todevelop a new structure, butextremely difficult to reform theexisting one. Zardari did the lat-ter in the form of the 18thAmendment, a milestone inPakistan's constitutional history.

The government has under-taken a number of steps to nul-lify the dictatorial measures.These achievements stand outas a testimony to the accom-plishment of Benazir's ideals.These includes 7th NFCAward, Aghaz-i-Haqooq-e-Balochistan, political reformsin Gilgit-Baltistan and FATA,18th Amendment, reconstruc-

tion of the Council ofCommon Interests, allocationof 120 billion rupees toKhyber Pakhtunkhwa as nethydel profit, launching ofBenazir Income SupportProgramme to alleviate pover-ty and increasing gas develop-ment surcharge forBalochistan.

On the international front,Zardari has followed the foot-steps of Benazir Bhutto. Hehas stressed the need to furtherstrengthen Pakistan's relations

with China and to normaliserelations with India; to mini-mize the trust-deficit in Pak-US relations and convince USas well as the EU countries togive more access and increasequota for Pakistani exportgoods. Spirit of participation,consultation and equal oppor-tunity are the guiding princi-ples for the formulation ofZardari's policy at strategicand implementation levels.

Benazir Bhutto had reiterat-ed time and again to fight theextremists who wanted to robthe people of their fundamen-tal and democratic rights.Following her conciliatoryapproach President Zardarisigned the Nizam-e-Adal regu-lation with militants in Swatand once it failed he orderedoperation against the terroristsin the larger interest of thecountry without bowing to anypressure. The government alsolaunched operation against theterrorists in South Waziristan.Terrorists' safe-havens havebeen destroyed in this area.

Benazir Bhutto had said thatthe fruits of democracy couldnot reach the common man

until and unless powers restwith the representatives of thepeople. President Zardari madehistory by signing the land-mark constitutional reformsbill into law in the form of 18thAmendment. "It is indeed agreat honour for me to havesigned into law this bill thatseeks to undo the undemocrat-ic clauses introduced in theconstitution by undemocraticleaders. The doors of dictator-ship have been closed forever",said President Asif Ali Zardari

while addressing the ceremonyafter according assent to theamendment.

The autonomy package forGilgit-Baltistan introduced bythe PPP Government led byZardari is the accomplishmentof Benazir's ideal to strengthenthe federation. The area hasnow an autonomous statuswith a chief minister and agovernor.

Ms Bhutto had promised tomake Balochistan an equalpartner in the federation.Balochistan package is the ful-fillment of that promise.Zardari made a departure fromthe past practice of trainingguns on those demanding theirrights. He made a public apol-ogy for all the wrongs done tothe people of Balochistan inthe past and pledged to makethe province an equal partnerin the federation.

Benazir vowed to safeguardthe rights of the workers andwomen. The Zardari-led peo-ple's government has passed anumber of laws to accomplishthis dream. It includes theIndustrial Relations Act 2008,the Prevention of Domestic

Violence Act, 2008, TheProtection AgainstHarassment of Women atWorkplace Act, 2009, theRemoval from Service(SpecialPowers) Ordinance 2000(Repeal) Act,2010, the ServicesTribunal( Amendment) Act,2010 etc. In order to upholdthe dignity of labour the peo-ple's government passed theIndustrial Relations Act, 2008.It regulates the government'svision on labour. The protec-tion Against Harassment ofWomen at Workplace Act is amodern legal instrument toprovide protection to women.

The Musharraf regime hadtargeted the Civil Servants byintroducing the black law of'Removal from ServiceOrdinance 2000'. Realizing thenegative impact of this blacklaw on the performance of thecivil servants, the People'sgovernment passed theRemoval from Service(Special Powers) Ordinance2000(Repeal) Act, 2010. Nowthe Civil Servants can workaccording to their conscience.

Benazir Bhutto, during hertwo terms in office had initiat-ed a number of steps for thebenefit of the agriculturalclass. The Zardari-led people'sgovernment led that initiativeand introduced BenazirTractor scheme, The BenazirCredit Card Scheme and CropLoan Insurance schemes etc.

The people's government isfollowing its motto 'Roti,Kapra aur Makan' as the gov-ernment has initiated the con-struction of 300,000 low-costhouses for the poor underBenazir Behan Basti scheme.

However, the anti-democrat-ic forces do not want to seedemocracy flourishing andpeople getting their basicrights. They are using negativeapproach to fulfill their ulteri-or motives. Part of the mediaseems to be playing in thehands of those elements,which is unfortunate. Theworkers and leaders ofPakistan People's Party areready to challenge such anti-democratic tactics.

Remembering October 18th

The government hasundertaken a number of

steps to nullify the dictatorialmeasures. These achievements

stand out as a testimony tothe accomplishment of

Benazir's ideals.

“

David Schlesinger

Page 5: The Financial Daily-Epaper-18-10-2010

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

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

Sales (July 09 to June 10) 73,993

Production (July 10) 7,509

Sales (July 10) 4,503

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

Sales (July 09 to June 10) 50,823

Production (July 10) 5,162

Sales (July 10) 4,999

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

Sales (July 09 to June 10) 14,120

Production (July 10) 1,560

Sales (July 10) 1,272

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

Sales (July 09 to June 10) 1,371

Production (July 10) 41

Sales (July 10) 40

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

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

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

Spread (July 2010) 7.51%

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

MS (July 10) 188

Kerosene (Jul 09 to June 10) 164

Kerosene (July 10) 15

JP (Jul 09 to June 10) 1,377

JP (July 10) 129

HSD (Jul 09 to June 10) 7,435

HSD (July 10) 664

LDO (Jul 09 to June 10) 75

LDO (July 10) 7

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

Fuel Oil (July 10) 869

Others (Jul 09 to June 10) 13

Others (July 10) 1

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

MS (1 Aug 10) 41.22

MS % Chg -0.90%

Kerosene (1 Sep 10) 47.14

Kerosene (1 Aug 10) 46.55

Kerosene % Chg 1.27%

JP-1 (1 Sep 10) 47.37

JP-1 (1 Aug 10) 46.78

JP-1 % Chg 1.26%

HSD (1 Sep 10) 50.61

HSD (1 Aug 10) 49.63

HSD % Chg 1.97%

LDO (1 Sep 10) 46.37

LDO (1 Aug 10) 45.29

LDO % Chg 2.38%

Fuel Oil (1 Sep 10) 39,932

Fuel Oil (1 Aug 10) 39,723

Sector Updates

Symbol Close Vol (mn)LOTPTA 9.62 50.54JSCL 9.30 19.87BAFL 8.85 19.78NML 50.86 17.13DGKC 25.70 15.71

Symbol Close ChangeRMPL 1,370.00 60.75SIEM 1,189.99 39.99MTL 480.90 37.08DREL 734.00 34.01BHAT 189.00 26.65

Symbol Close ChangeWYETH 830.06 -79.94FZTM 320.00 -33.16FEROZ 87.94 -21.06NESTLE 1,941.00 -20.62LAKST 353.68 -17.87

Plus 239Minus 174Unchanged 19

Top 5 Volume Leaders

Major Losers

Major Gainers

KSE-100 Index

LSE-25 Index

ISE-10 Index

Active Issues

General Motors saysIPO pricing not set yet

Asian stocks gain for7th wk on economic outlook

Monday, October 18, 2010 5

Dhiyan

Performance of the market depends upon the current political situation.However, technically speaking, the market is strong as the future con-tracts are oversold therefore we can expect a good show as soon as thesituation improves in the political corridors. Investors are advised toreadjust there stances according to what developments the politicalfront has to offer which, if it moves towards reconciliation would bethe cue to invest in oil & gas, power, (selective) bank, cement, and fer-tiliers stocks at dips. Market might open positive today.

Salman Naqvi, Head of Sales Aba Ali Habib Securities

Zia Shaafi, Senior equity dealer & Technical analyst Pearl Securities

Technically, market should witness a correction at the psychologicallevel of 10,500 points. Investors are therefore advised to offload majorpart of their holdings while the new ones better adopt 'wait & see' strat-egy till smoke clears on the political front. As far as triggers are con-cerned, good corporate results, launch of Margin Trading System(MTS), settlement of political issues, and better law and order situationwould spur the market to go bullish. Market would be in pressuretoday.

TAKE CUE FROM POLITICALS

Opening 10,260.48Closing 10,431.84Change 171.36% Change 1.67Turnover (mn) 450.02

Opening 3,192.48Closing 3,244.41Change 51.93% Change 1.63Turnover (mn) 19.48

Opening 2,610.22Closing 2,668.49Change 58.27% Change 2.23Turnover (mn) 0.93

NEW YORK: Actor Tony Sirico visits The New York Stock Exchange.-Reuters

Weekly Review

NEW YORK: US banks will bein the limelight this week as sev-eral household names reportearnings and investors worry aforced halt to foreclosure pro-ceedings could hit the sector andend the recent rally.

Bank shares fell sharply onFriday on very high volume,continuing a slide from the pre-vious day. Although recoveringsome of their losses, Bank ofAmerica shares hit their lowestin over a year, while the KBWbank index fell 2.4 per cent.

Shares of Bank of America, thenation's largest mortgage lender,have fallen 9 per cent during theweek. Over 595.9 million sharesof the company's stock traded onFriday, the most since April 2009and over four times the 50-daymoving average.

Investors worry banks did notfollow proper due diligencewhen foreclosing on homeswhose owners were not makingmortgage payments, whichcould result in costly litigation,fines and additional mortgagerepurchases.

Kevin Caron, market strategistat Stifel, Nicolaus & Co inFlorham Park, New Jersey, saidthat situation could also weighon the housing market if theuncertainty discouraged buyersfrom entering into contracts onproperties under foreclosure.

"That speculative investor onthe margin may choose to not toengage in that activity, whichmeans there's the potential thatyou could have some weaknessin demand, particularly in thelower-end speculative range ofthe housing market," he said.

Investors will pepper bankexecutives with questions whenthose companies present earn-ings reports this week. Banksreporting results include WellsFargo, Bank of America, andCitigroup Inc, three of the largestmortgage lenders in the nation.

The broad S&P financial sectoris expected to show earnings of$27.7 billion in the third quarter,a 71 per cent increase over a yearearlier, although third-quarterrevenue growth is seen falling 6

per cent to $252.9 billion.However, earnings estimates

have been cut on some banks.Financials with the biggestreductions in earnings estimatesfor the quarter in the latest weekare Goldman Sachs, PNCFinancial, and Citigroup, accord-ing to John Butters, director ofUS earnings at Thomson Reuters.

The financial sector has been aconundrum in the latest marketrally since the start ofSeptember. The KBW index hasgained only 4 per cent at a timewhen the broader S&P 500 hasrallied nearly 12 per cent.

David Giroux, who runs T.Rowe Price's $9.4 billion CapitalAppreciation Fund, said expec-tations that deflation wouldweigh on bank earnings in thenear term was pressuring thesector. He said banks were nowattractively valued and the sec-tor is the fund's largest, makingup nearly 15 per cent of assets.

"Most of the large banks areasset sensitive, which means thatas rates rise, their profits shouldrise," he said. "So if you're a bigbeliever in deflation, which themarket has become a big believ-er in ... financials do poorly."

Giroux said a second round ofstimulus from the FederalReserve was unnecessary asinflation was already present inthe system. Hopes the Fed willpump billions into the economyhas helped drive stocks higherrecently.

The Fed will release its BeigeBook during the week and that willprovide another insight into thecentral bank's thinking on the econ-omy. On Friday, Fed ChairmanBen Bernanke hinted more mone-tary stimulus was on the way.

A number of other big UScompanies from a range ofindustries will also present theirscorecards this week, givinginvestors more clues about theeconomy's health. They includeApple Inc, Caterpillar Inc andJohnson & Johnson.

Early indications from thisearnings season have beenmixed. Google Inc blew pastanalysts' expectations on Friday,

driving its stock up 11.2 percent, while lower-than- expectedrevenue at General Electric,often seen as a proxy for theeconomy, pushed its sharesdown 5.1 per cent.

Signs in the options marketsuggest more volatility this weekas the recent trend of a continu-ous slide in the volatility indexseems to be coming to an end.

"There is more call buying onthe VIX now than put selling,which suggests that traders see aspike in VIX in the near term,"said Randy Frederick, directorof trading and derivatives at theSchwab Center for FinancialResearch in Austin, Texas.

The Chicago Board OptionsExchange Volatility Index, orVIX VIX.N, closed on Friday at19.03, down 4.3 per cent, afterrising above 21 during the day.

The market has continued tomove higher since the S&P 500broke a resistance level ataround 1,130 in the middle ofSeptember. Some chartists arenow looking at an upside targetof 1,228.74, the 61.8 per centFibonacci retracement from the2007 high.

This week may also see a so-called "golden cross" in the S&P500 if the 50-day moving aver-age rises above the 200-day -- abullish sign for some traders.The 14-day moving averagemoved above the 50-day and the200-day averages in September.

Industrial production data willkick off the week, followed byTuesday's report on Septemberhousing starts. A weak housingnumber could rattle investors ata time when they're already anx-ious about the housing sector.Housing starts are seen slippingto an annualised rate of 580,000units, according to economistspolled by Reuters.

Elsewhere on the economicfront, the Philly Fed index isamong early indicators ofOctober regional business activ-ity leading up to the national sur-veys on manufacturing and serv-ices from the Institute for SupplyManagement at the end of themonth. -Reuters

Foreclosure debacleto test stocks’ rally

Wall Street weekly outlook

Amir Abidi

KARACHI: The board meet-ing of Allied Bank Ltd (ABL)scheduled today (MondayOctober 18, 2010) willannounce financial results offirst 9 months of this yearwhich ended on Sept 2010.

At TFD, we expect ABL topost a PAT to the tune of Rs5.58billion during 9MCY10 as com-pared to Rs5.01 billion duringthe same period last year show-ing growth of 11.4 per cent onyear-on-year (YoY) basis. Thistranslates into an EPS of Rs7.14for the period against Rs6.41posted in the same period lastyear. We do not predict any pay-out with the results as ABL has

already paid cash dividend withits half yearly results for the year2010.

The growth of 11.4 per cent inbottom line will be backed byhealthy increase in NIMs thatwould give rise to 17.5 per centYoY increase in net interestincome to Rs16.01 billion com-pared to Rs13.62 billion last yearmainly due to consequentimprovement in CASA ratio.Furthermore, decrease in provi-sions by 9.7 per cent to Rs3.01billion would further boost prof-itability. Non interest income islikely to decline by 18.1 per centto Rs3.85 billion against Rs4.98billion due to lower fee incomeand capital gain comparing pre-vious year same period.

ABL 9MCY10 PATseen at Rs5.58bn

Result Preview

Nawaz Ali

KARACHI: During the lastweek, expectations of strongcorporate results, higher inter-national oil prices, and contin-ued foreign interest kept thebulls in action at the KarachiStock Exchange (KSE) --evenpolitical tensions couldn’t holdthem back.

The benchmark KSE 100-Index increased by 171 points(1.67 per cent) to close at10,431 points, KSE 30-Indexrose by 165 points (1.66 percent) to close at 10,094 pointsand KSE All Share Index grewby 116 points (1.62 per cent) toclose at 7,267 points.

Index touched a highest levelof 10,476 points and a lowest of10,243 points during the week.

Saeed Khalid, analyst atInvest Cap said that the reasonbehind the return was theinvestors resetting their posi-tions ahead of the upcoming

quarterly corporate results sea-son. Moreover, the mostimportant issue during theweek was the NRO case whichkept market in the check.Although the activity was littlesluggish during the week butthe investors somehow man-aged to raise better volumes inthe market by the end of thelast couple of trading sessions,he added.

The week started on a bullishnote on Monday where due tobuying on expectations of goodcorporate results index closedthe session 62 points up in arally led mainly by the bankingsector.

But some profit taking eject-ed 30 points from the index thenext day as investors preferredto square their positions aheadof recommencement of hear-ings on National ReconciliationOrdinance (NRO) by theSupreme Court on Oct 13.

See # 5 Page 11

KSE greenslast wk asbulls eyeearnings

Gulf stocks mkt

SABIC

helps lift

Saudi indexDUBAI: HeavyweightSaudi Basic Industries Corp(SABIC) lifted the indexTASI slightly, and coulddetermine the direction ofactivity on the bourse thisweek as trading remainsmuted ahead of other majorearnings.

SABIC rose 0.9 per cent,helping the benchmark rise0.1 per cent to 6,235 points,but trading has been side-ways throughout the ses-sion.

"We're expecting SABICannouncement (of thirdquarter results) beforeWednesday, this could havea significant reflection onthe index," said MusaHaddad, head trader in theasset management group atNBAD.

"Banking sector resultscame in below expectationsand this gave momentum tothe downside."

SABIC was expected toannounce earnings after themarket closes on Sunday.

Dubai's index DFM endedlower on profit-taking butmanaged to reverse some ofthe session's losses as trad-ing remained muted aheadof third quarter-earnings.

Construction giantArabtec lost1.8 per cent,having hit a near-fivemonth high last week.

"The market is seeingsome profit-taking on thedownside, and it was duefor a short-term correction,"says Musa Haddad, headtrader in the asset manage-ment group at NBAD.

The benchmark slipped0.1 per cent to 1,744 points.

Trading on other GulfArab bourses was alsomuted.

Abu Dhabi's index ADIrose 0.2 per cent to 2,763points, Kuwait's measureKWSE gained 0.3 per centand ended at 7,034 pointsand Bahrain's bourse BAXinched up 0.09 per cent to1,461 points. -Reuters

Page 6: The Financial Daily-Epaper-18-10-2010

Monday, October 18, 20106

Volume 450,023,156

Value 15,316,196,618

Trades 251,935

Advanced 239

Declined 174

Unchanged 19

Total 432

Current 7,267.31

High 7,295.94

Low 7,144.40

Change h116.12

Current 10,431.84

High 10,476.32

Low 10,243.72

Change h171.36

Current 10,094.80

High 10,166.13

Low 9,905.42

Change h165.23

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

Technical AnalysisFundamental Highlights

As on Dec 31, 2009

WorldCall Telecom Limited

WTL closed up 0.22 at 2.82. Volume was 1 per cent below average and

Bollinger Bands were 23 per cent wider than normal. The company's

loss after taxation stood at Rs410.586 million which translates into a

Loss Per Share of Rs0.48 for the half year of current calendar year

(1HCY10).

WTL is currently 22.5 per cent below its 200-day moving average and

is displaying an upward trend. Volatility is relatively normal as com-

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

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

Trend forecasting oscillators are currently bullish on WTL.

RSI (14-day) 65.63 Total Assets (Rs in mn) 17,566.02

MA (10-day) 2.60 Total Equity (Rs in mn) 11,379.05

MA (100-day) 2.88 Revenue (Rs in mn) 8,408.28

MA (200-day) 3.65 Interest Expense 523.03

1st Support 2.72 Loss after Taxation (490.82)

2nd Support 2.64 EPS 09 (Rs) (0.570)

1st Resistance 2.93 Book value / share (Rs) 13.22

2nd Resistance 3.06 PE 10 E (x) -

Pivot 2.85 PBV (x) 0.21

Technical AnalysisFundamental Highlights

As on Jun 30, 2009

TRG closed down -0.26 at 4.02. Volume was 9 per cent above average

and Bollinger Bands were 6 per cent wider than normal. The company's

loss after taxation stood at Rs511.212 million which translates into a

Loss Per Share of Rs1.56 for the nine months of fiscal year (9MFY10).

TRG is currently 0.4 per cent above its 200-day moving average and is

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

volatility over the last 10 trading sessions. Volume indicators reflect

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

oscillators are currently bullish on TRG.

RSI (14-day) 51.70 Total Assets (Rs in mn) 2,549.61

MA (10-day) 4.22 Total Equity (Rs in mn) 2,509.06

MA (100-day) 4.10 Revenue (Rs in mn) 28.92

MA (200-day) 4.02 Interest Expense 0.10

1st Support 3.94 Profit after Taxation 766.33

2nd Support 3.84 EPS 09 (Rs) 1.988

1st Resistance 4.20 Book value / share (Rs) 6.51

2nd Resistance 4.36 PE 10 E (x) -

Pivot 4.10 PBV (x) 0.62

TRG Pakistan Limited

Technical AnalysisFundamental Highlights

As on Dec 31, 2009

NIB closed down -0.25 at 2.83. Volume was 20 per cent below average and

Bollinger Bands were 31 per cent wider than normal. The company's loss

after taxation stood at Rs1.944 billion which translates into a Loss Per

Share of Rs0.48 for the half year of current calendar year (1HCY10).

NIB is currently 24.4 per cent below its 200-day moving average and is

displaying an upward trend. Volatility is extremely high when compared

to the average volatility over the last 10 trading sessions. Volume indi-

cators reflect volume flowing into and out of NIB at a relatively equal

pace. Trend forecasting oscillators are currently bullish on NIB.

RSI (14-day) 52.18 Total Assets (Rs in mn) 208,118.96

MA (10-day) 2.85 Total Equity (Rs in mn) 41,643.27

MA (100-day) 2.99 Revenue (Rs in mn) 18,272.36

MA (200-day) 3.74 Interest Expense 12,872.36

1st Support 2.80 Profit after Taxation 691.05

2nd Support 2.72 EPS 09 (Rs) 0.171

1st Resistance 2.98 Book value / share (Rs) 10.30

2nd Resistance 3.08 PE 10 E (x) -

Pivot 2.90 PBV (x) 0.27

NIB Bank Limited

Technical AnalysisFundamental Highlights

As on Dec 31, 2009

ATBL closed down -0.01 at 2.17. Volume was 134 per cent above aver-

age and Bollinger Bands were 120 per cent wider than normal. The

company's loss after taxation stood at Rs942.176 million which trans-

lates into a Loss Per Share of Rs1.88 for the half year of current calen-

dar year (1HCY10).

ATBL is currently 14.5 per cent below its 200-day moving average and

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

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

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

lators are currently bullish on ATBL.

RSI (14-day) 55.62 Total Assets (Rs in mn) 30,869.51

MA (10-day) 2.19 Total Equity (Rs in mn) 2,482.06

MA (100-day) 2.07 Revenue (Rs in mn) 3,387.93

MA (200-day) 2.53 Interest Expense 3,189.33

1st Support 2.10 Loss after Taxation (1,703.11)

2nd Support 2.00 EPS 09 (Rs) (3.405)

1st Resistance 2.25 Book value / share (Rs) 4.96

2nd Resistance 2.30 PE 10 E (x) -

Pivot 2.15 PBV (x) 0.44

Atlas Bank Limited

OIL AND GAS

Performance of SR Oil and Gas Index

Open High Low Close Change % Change

1,278.38 1,338.46 1,283.96 1,327.22 48.84 3.82

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

33,555,111 - - 65,194.15 mn 1,055,066.86 mn -

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

11.22 4.15 37.01 68.56 6.11 -

Attock PetroleumSPOT 576 5.61 368.59 374.20 362.00 364.51 -4.08 972353 374.20 295.10 250 - 300 20

Attock Refinery 853 16.52 86.13 92.50 86.40 90.88 4.75 8858164 92.65 73.47 - - - -

Mari Gas Company 735 16.18 112.39 119.40 110.02 119.40 7.01 568809 138.45 106.00 32.17 100B 31 -

National RefinerySPOT 800 5.64 215.57 230.84 215.25 226.39 10.82 1178327 230.84 183.25 125 - 200 -

Oil & Gas Development XD 43009 10.43 147.21 151.50 146.62 151.17 3.96 6027476 153.00 133.00 82.5 - 55 -

Pak Petroleum 11950 5.84 180.23 189.40 179.81 186.37 6.14 4298345 214.10 168.70 130 20B 90 20B

Pak OilfieldsSPOT 2365 6.32 244.55 251.24 243.60 248.88 4.33 4045534 251.24 213.17 180 - 255 -

Pak Refinery Limited 350 - 61.76 77.05 64.84 77.02 15.26 285348 79.50 48.26 - - - -

PSO XD 1715 4.62 279.13 280.99 272.55 273.06 -6.07 3791584 289.45 233.10 50 - 80 -

Shell Gas LPG 226 14.13 30.01 32.50 29.10 31.36 1.35 190843 39.80 27.32 - - - -

Shell Pakistan XD 685 9.96 193.91 197.00 193.00 194.25 0.34 152635 244.00 188.00 330 - 40 -

Paid up Last 60 days 2009 2010

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

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

PERSONAL GOODS

Performance of SR Personal Goods Index

Open High Low Close Change % Change

918.63 928.86 902.34 917.84 -0.79 -0.09

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

50,464,980 - - 47,070.70 mn 115,684.12 mn -

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

6.36 0.55 8.64 16.68 2.62 -

Amtex Limited XD 2415 2.86 11.98 12.30 10.71 10.71 -1.27 1424002 20.45 10.71 - - 30 -

Artistic DenimSPOT 840 5.74 21.15 24.05 21.50 22.86 1.71 136776 24.05 17.55 20 - 20 -

Aruj Garments 62 7.89 4.75 4.50 4.25 4.50 -0.25 11200 6.70 3.50 - - - -

Azam Textile 133 0.56 2.49 3.23 2.35 3.09 0.60 771098 3.23 1.35 - - 7.5 -

Azgard Nine 4493 254.75 10.39 10.70 10.05 10.19 -0.20 4819425 13.30 8.55 - - - -

Babri Cotton 29 0.37 17.01 16.15 13.25 13.25 -3.76 15000 18.75 9.50 - - - 15B

Bannu Woolen 76 1.18 11.45 14.00 12.45 13.60 2.15 68603 14.00 7.50 - - 20 -

Bilal Fibres 141 - 0.60 1.18 0.75 1.10 0.50 21000 1.96 0.55 - - - -

Chakwal SpinningSPOT 400 1.29 1.70 1.98 1.16 1.98 0.28 25352 2.56 0.70 - - 5 -

Chenab Limited 1150 - 3.54 3.87 3.20 3.26 -0.28 99067 4.98 2.93 - - - -

Colony Mills Ltd 2442 2.59 2.90 3.20 2.60 2.80 -0.10 87422 5.00 2.23 - - - -

Crescent Jute 238 - 0.80 1.15 0.70 0.99 0.19 10840 1.90 0.48 - - - -

D S Ind Ltd 600 - 1.50 1.80 1.49 1.65 0.15 1170878 2.49 1.44 - - - -

Dawood Lawrencepur 514 9.53 41.00 41.88 39.00 39.85 -1.15 49871 51.99 37.08 - - 5 -

Din TextileXDXB 204 1.19 26.40 26.00 20.80 23.10 -3.30 6389 30.90 20.80 - - 20 10B

Ellcot SpinningSPOT 110 1.80 20.26 22.20 20.15 21.10 0.84 44809 25.45 20.15 7.5 - 35 -

Fazal Cloth 188 2.00 42.75 49.30 41.00 49.20 6.45 6500 49.30 39.23 - - - -

Gadoon Textile 234 1.22 45.98 48.00 45.25 45.51 -0.47 27506 48.30 33.80 - - 70 -

Gillette Pakistan 192 45.70 63.89 66.75 60.00 61.70 -2.19 5665 73.00 57.50 - - - -

Gul Ahmed Textile 635 2.99 20.99 23.40 21.50 22.52 1.53 10199 23.40 19.99 5 - 12.5 -

Gulistan Spinning 146 1.40 7.13 8.13 5.62 6.35 -0.78 36125 8.13 5.00 - 10B 10 -

Gulshan Spinning 185 1.65 7.99 9.24 8.00 9.10 1.11 400009 9.24 5.31 - 10B 10 20B

Hira Textile Mills Ltd. 716 1.22 4.68 4.78 4.20 4.25 -0.43 944555 4.85 2.52 - - 10 -

Ibrahim FibresSPOT 3105 3.53 35.89 38.40 34.05 38.16 2.27 70733 39.99 34.05 - - 20 -

Ideal Spinning 99 0.66 3.31 3.50 3.24 3.40 0.09 26140 4.79 2.02 - - - -

Idrees Textile 180 2.43 4.10 4.40 4.02 4.25 0.15 43913 5.35 2.56 - - 10 -

Indus DyeingSPOT 181 2.82 209.71 240.00 209.03 213.59 3.88 22821 269.50 199.70 15 - - -

Int KnitwearSPOT 32 5.40 10.90 10.70 9.90 10.20 -0.70 10003 10.90 7.00 - - 6 -

Khalid Siraj 107 - 0.80 0.80 0.34 0.69 -0.11 20001 1.99 0.10 - - - -

Kohinoor Ind 303 - 1.46 1.65 1.25 1.42 -0.04 373267 2.00 1.01 - - - -

Kohinoor Mills 509 - 2.17 2.50 1.62 2.01 -0.16 22942 3.79 1.60 - - - -

Kohinoor Spinning 1300 1.23 1.25 1.84 1.22 1.35 0.10 92157 1.84 0.56 - - 5 -

Kohinoor Textile 1455 2.82 5.41 5.60 5.00 5.38 -0.03 141333 6.30 4.00 - - - -

Maqbool Textile 168 2.12 7.75 11.49 8.75 11.25 3.50 26374 11.49 3.25 - - 22.5 -

Nagina CottonSPOT 187 1.31 16.16 17.50 16.00 17.45 1.29 27494 17.50 12.00 - - 20SD -

Nishat (Chunian) 1586 2.42 18.42 19.27 17.82 19.11 0.69 13865334 19.49 14.64 - 50R 15 -

Nishat Mills 3516 5.98 49.24 51.12 48.91 50.86 1.62 17126762 53.14 40.81 20 - 25 45R

Pak Synthetic 560 5.71 6.15 5.84 5.16 5.25 -0.90 49982 7.90 5.16 12.5 - - -

Paramount Spinning 158 1.44 9.20 9.88 7.65 9.88 0.68 16827 10.17 6.00 - 10B 10 10B

Premium TextileSPOT 62 0.93 29.00 29.50 28.21 29.00 0.00 11923 30.90 26.00 7.5 - 50 -

ProsperitySPOT 185 2.59 16.03 19.25 16.00 17.85 1.82 29750 21.47 15.75 20 - 30 -

Ravi Textile 250 4.59 1.88 1.99 1.68 1.79 -0.09 895280 4.69 1.38 - - - -

Redco Textile 213 4.67 0.98 1.00 0.61 0.70 -0.28 20000 1.20 0.50 - - - -

Reliance Weaving 308 0.85 10.13 11.69 10.40 11.15 1.02 629170 12.00 6.91 - - 25SD -

Saif Textile 264 1.37 4.63 5.44 3.50 4.00 -0.63 12887 5.44 2.01 - - - -

Sally Textile 88 0.35 4.47 6.20 4.70 5.35 0.88 521054 6.20 2.74 - - 10 -

Salman Noman 40 4.43 3.01 2.74 2.26 2.26 -0.75 25100 3.11 1.30 - - - 5B

Samin Textile XR 134 - 7.26 8.00 6.46 7.99 0.73 13883 8.69 5.02 - - - 100R

Sapphire FibreSPOT 197 3.05 99.93 115.50 100.01 112.00 12.07 6019 115.50 91.50 - - 15 -

Sargoda Spinning 312 0.51 1.51 2.50 1.87 1.96 0.45 21924 2.50 0.31 - - 5 -

Saritow Spinning 133 0.58 2.38 2.99 2.00 2.10 -0.28 128336 2.99 1.01 - - - -

Service Ind 120 4.77 185.55 188.90 176.00 185.33 -0.22 19617 225.99 176.00 200 - - -

Shahpur Textile 140 1.15 0.95 1.01 0.80 0.83 -0.12 25818 2.26 0.25 - - - -

Shahtaj TextileSPOT 97 - 20.00 20.79 19.35 20.77 0.77 76598 21.50 14.75 20 - 45 -

Sunrays Textile 69 1.06 33.63 34.98 34.00 34.95 1.32 40834 35.00 30.03 10 - - -

Suraj Cotton 180 1.25 36.49 36.80 35.00 35.00 -1.49 272314 37.50 29.50 15 - 50 -

Tata Textile XD 173 0.75 17.64 19.00 17.50 18.97 1.33 24398 19.70 12.75 - - 25 -

Thal LimitedSPOT 256 4.14 106.85 112.80 104.50 110.51 3.66 568931 114.99 97.00 20 20B 80 20B

Treet Corp 418 7.89 37.98 38.80 37.50 38.27 0.29 320035 49.49 37.20 - - - -

Yousuf Weaving 400 6.47 1.23 1.25 0.86 1.10 -0.13 14400 1.90 0.73 - - - -

Zephyr Textile Ltd 594 - 2.99 3.50 2.60 3.25 0.26 129105 4.99 1.50 - - - -

Paid up Last 60 days 2009 2010

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

1,049.48 1,152.85 1,077.10 1,136.75 87.27 8.32

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

507,955 - - 3,763.71 mn 5,602.11 mn -

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

4.27 0.45 10.64 6.27 1.47 -

Pak Elektron 1174 2.89 13.84 13.97 13.50 13.52 -0.32 321782 15.95 12.17 - 10B - 10B

Tariq Glass Ind 231 2.77 17.18 18.15 16.60 17.03 -0.15 152214 19.12 14.45 - - 17.5 -

Paid up Last 60 days 2009 2010

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

1,464.26 1,526.28 1,442.54 1,479.46 15.21 1.04

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

923,416 - - 11,335.33 mn 189,871.26 mn -

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

30.62 9.28 30.30 30.57 1.00 -

AL-Noor Sugar 186 4.27 42.00 42.90 41.01 42.00 0.00 10655 47.35 39.25 40 - - -

Ansari Sugar 244 0.19 6.00 6.00 4.03 4.07 -1.93 101000 6.00 3.80 - - - -

Chashma Sugar 287 0.71 9.15 9.15 8.75 8.80 -0.35 10500 11.40 8.00 - - - -

Crescent Sugar 214 11.32 6.48 6.40 6.00 6.00 -0.48 50000 7.80 5.50 - - - -

Faran Sugar 217 3.16 18.55 20.00 18.75 19.56 1.01 14010 23.50 15.90 17.5 - - -

Habib Sugar 600 6.34 29.14 32.25 29.25 30.74 1.60 388312 32.25 24.60 35 25B - -

Habib-ADM Ltd XD 200 3.56 13.00 13.35 12.20 12.68 -0.32 31475 16.98 12.20 40 - 40 -

J D WSugar 490 2.41 66.00 72.00 66.01 71.99 5.99 17745 72.00 60.10 40 - 0 12.5R

Mehran Sugar 143 3.09 53.25 55.40 50.50 55.22 1.97 28865 58.74 48.50 35 30B 25 10B

National Foods 414 19.45 41.43 42.00 39.15 40.66 -0.77 7203 65.29 39.15 - 25B 12 -

Noon Pakistan 48 9.89 21.00 21.52 18.95 21.27 0.27 11439 33.06 18.95 - 10B 12 -

Premier Sugar 38 6.70 33.01 38.80 33.00 36.53 3.52 16363 43.60 32.50 30 - - -

Shahmurad Sugar 211 16.16 11.49 11.40 10.85 11.15 -0.34 33488 11.90 7.40 15 - - -

Shahtaj Sugar 120 - 60.90 68.00 57.00 68.00 7.10 19745 83.03 44.50 100 - - -

Shakarganj Mills 695 - 4.01 4.73 3.90 4.21 0.20 17888 5.00 3.02 - - - -

Tandlianwala 1177 290.00 28.50 31.90 28.50 31.90 3.40 8920 35.50 22.45 - - - -

Paid up Last 60 days 2009 2010

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

1,065.36 1,104.37 1,050.02 1,081.24 15.89 1.49

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

1,350,568 - - 6,768.53 mn 38,993.67 mn -

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

3.81 0.97 25.35 20.42 5.36 -

Agriautos IndSPOT 144 5.17 70.00 72.50 67.55 70.84 0.84 234642 78.39 63.01 40 - 90 -

Atlas Battery 101 5.71 137.97 151.36 138.00 151.36 13.39 64569 208.25 131.00 100 20B 100 20B

Dewan Motors 890 - 1.34 1.62 1.32 1.46 0.12 2831566 2.10 1.16 - - - -

Ghandhara Nissan 450 - 4.13 4.75 4.03 4.30 0.17 70330 6.37 4.03 - - - -

Ghani Automobile Ind 200 3.53 4.57 5.25 4.00 4.20 -0.37 9456 5.70 3.55 - - - -

Honda Atlas Cars 1428 - 10.71 11.50 10.37 10.62 -0.09 119589 13.50 9.65 - - - -

Indus Motors 786 5.23 224.68 234.90 220.50 229.25 4.57 204026 287.00 212.29 100 - 150 -

Pak Suzuki 823 9.32 73.80 77.00 73.00 75.00 1.20 33579 89.99 69.25 5 - - -

Sazgar EngineeringXDXB 150 5.14 24.50 26.00 19.50 19.77 -4.73 58778 27.85 19.50 - 20B 10 20B

Transmission 117 2.00 2.19 3.00 1.65 2.00 -0.19 25011 3.25 1.53 2 - - -

Paid up Last 60 days 2009 2010

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

1,443.98 1,552.23 1,426.63 1,529.04 85.06 5.89

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

1,405,052 - - 1,336.62 mn 31,831.38 mn -

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

7.51 2.86 38.02 131.49 17.50 -

Ados Pak 66 3.16 19.62 19.85 14.62 15.50 -4.12 16426 22.69 14.62 20 - - -

AL-Ghazi Tractor 215 5.05 213.07 223.00 210.01 210.71 -2.36 95288 227.45 200.26 400 - 150 -

Bolan CastingXDXB 104 5.23 50.04 46.85 41.50 45.30 -4.74 48473 51.99 35.25 - 20B 25 10B

Dewan Auto Engineering 214 - 0.70 1.00 0.45 0.50 -0.20 9503 1.00 0.36 - - - -

Ghandhara Ind 213 2.08 12.25 13.70 11.29 13.20 0.95 190373 19.75 11.29 - - - -

Millat TractorsXDXB 366 6.16 443.82 488.50 437.31 480.90 37.08 1017003 597.90 390.00 450 25B 650 25B

Paid up Last 60 days 2009 2010

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

890.44 911.46 875.18 900.23 9.78 1.10

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

1,461,023 - - 3,043.31 mn 33,560.33 mn -

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

1.59 0.70 43.91 15.55 9.81 -

Cherat PapersackXDXB 115 3.30 46.52 46.99 34.00 34.65-11.87 293630 51.05 34.00 - - 20 25B

ECOPACK Ltd 230 - 2.00 2.64 2.05 2.29 0.29 343706 2.89 1.70 - - - -

Ghani GlassXDXB 1067 5.12 59.66 61.10 50.00 50.05 -9.61 218604 61.99 50.00 30 10B 25 10B

Packages Ltd 844 16.11 101.88 107.89 100.50 106.31 4.43 675300 125.96 98.00 32.5 - - -

Paid up Last 60 days 2009 2010

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

918.47 965.91 914.85 950.17 31.70 3.45

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

39,967,680 - - 54,792.74 mn 69,877.95 mn -

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

6.92 0.49 7.10 19.04 2.75 -

Al-Abbas Cement 1828 - 3.25 3.50 3.01 3.10 -0.15 55227 4.20 2.80 - - - 100R

Attock CementSPOT 866 5.05 63.20 65.50 62.51 63.44 0.24 436292 71.90 62.00 50 20B 50 -

Berger Paints 182 - 14.61 15.69 14.12 15.01 0.40 32493 20.00 14.01 - - - 122R

Cherat Cement 956 - 11.29 11.19 10.17 10.70 -0.59 10917 12.50 8.90 - - - -

Dadabhoy Cement 982 12.00 1.52 2.20 1.51 1.56 0.04 69569 2.74 1.30 - - - -

Dandot Cement 948 - 1.80 2.00 1.35 1.88 0.08 34556 3.90 1.02 - - - -

Dewan Cement 3574 - 1.60 1.99 1.50 1.55 -0.05 458042 2.20 1.30 - - - -

DG Khan Cement Ltd 3651 35.69 24.99 26.00 24.84 25.70 0.71 15708506 28.74 23.02 - 20R - 20R

EMCO Ind 350 - 3.00 3.95 2.50 3.50 0.50 27383 5.15 2.11 - - - -

Fauji Cement 6933 12.48 4.74 5.10 4.70 4.99 0.25 4216311 5.50 4.50 - - - -

Flying Cement Ltd 1760 - 1.87 2.04 1.74 1.93 0.06 290578 2.30 1.74 - - - -

Haydery Const 32 - 0.99 0.99 0.63 0.88 -0.11 28688 2.00 0.25 - - - -

Kohat Cement 1288 - 5.98 6.05 5.85 5.90 -0.08 1087012 6.80 5.50 - - - -

Lucky CementSPOT 3234 6.58 72.63 74.00 72.20 73.29 0.66 4083450 74.00 62.60 40 - 40 -

Maple Leaf Cement 5261 - 2.82 2.96 2.73 2.84 0.02 473887 3.77 2.51 - - - -

Pioneer Cement 2228 - 8.03 8.40 7.61 8.02 -0.01 349698 8.47 6.80 - - - -

Thatta Cement 7982122.00 19.75 21.27 18.00 21.22 1.47 43781 21.80 17.74 - - - 50R

Paid up Last 60 days 2009 2010

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

958.31 956.20 908.12 918.71 -39.60 -4.13

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

682,571 - - 3,596.11 mn 8,822.68 mn -

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

2.91 0.96 33.10 30.91 10.61 -

Crescent Steel 565 3.38 24.98 25.00 24.00 24.97 -0.01 101022 31.73 23.75 - - 30 -

Dost Steels Ltd 675 - 2.06 2.44 2.00 2.27 0.21 317705 3.17 1.65 - - - -

Huffaz Pipe 555 5.40 12.69 13.50 12.50 12.59 -0.10 41503 16.75 12.25 - 30B - -

International Ind 1199 4.48 47.12 48.00 45.93 45.99 -1.13 119156 70.71 45.93 - - 40 20B

Paid up Last 60 days 2009 2010

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

1,154.94 1,167.01 1,137.21 1,149.29 -5.65 -0.49

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

253,315 - - 1,186.83 mn 3,183.75 mn -

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

5.94 0.44 7.47 25.28 4.25 -

Century Paper 707 - 19.11 19.49 18.50 18.88 -0.23 214295 22.70 17.31 - 425R - -

Security Paper 411 4.73 40.00 40.00 39.50 40.00 0.00 18987 50.40 38.10 50 - 50 -

Paid up Last 60 days 2009 2010

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

1,163.54 1,194.87 1,160.93 1,179.27 15.73 1.35

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

91,288,117 - - 52,251.88 mn 266,156.94 mn -

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

7.34 2.57 35.00 48.81 6.65 -

Bawany AirXDXR 68 1.36 11.75 12.75 9.72 10.64 -1.11 33933 16.78 9.72 - - 5 10R

BOC (Pak) 250 9.67 72.94 76.90 72.50 76.00 3.06 7065 82.50 66.90 90 - 15 -

Dawood Hercules 1203 7.80 170.25 171.90 168.05 169.01 -1.24 25504 185.88 155.38 40 10B 20 -

Dewan Salman 3663 - 1.41 1.53 1.32 1.46 0.05 742809 2.21 1.28 - - - -

Dynea PakSPOT 94 4.42 11.71 12.50 11.60 11.84 0.13 17791 13.60 10.85 15 - 15 -

Engro Corporation Ltd 3277 9.08 177.44 181.20 174.60 177.14 -0.30 5938390 194.59 165.60 6010B 40R 20 -

Fatima Fertilizer 22000 - 10.33 10.88 10.17 10.61 0.28 2957701 12.46 9.02 - - - -

Fauji Fertilizer 6785 7.36 107.34 109.00 106.80 108.15 0.81 2698868 113.39 102.96 131.5 10B 75 -

Fauji Fert. Bin Qasim 9341 7.49 28.57 30.10 28.65 29.43 0.86 13909784 30.65 26.59 40 - 5 -

ICI Pakistan 1388 7.24 122.40 123.70 120.60 121.50 -0.90 531124 128.30 109.50 80 - 55 -

Lotte Pakistan 15142 3.34 8.92 9.72 8.71 9.62 0.70 50536925 9.72 6.75 5 - - -

Mandviwala 74 - 1.79 2.75 1.22 1.45 -0.34 22564 3.24 1.06 - - - -

Nimir Ind Chemical 1106 74.00 1.34 1.57 1.31 1.48 0.14 1111648 1.77 1.16 - - - -

Shaffi Chemical 120 1.83 2.31 2.90 2.25 2.43 0.12 59908 3.80 2.00 - - - -

Sitara Chem Ind SPOT 204 5.36 124.90 125.00 120.00 121.40 -3.50 27184 128.01 110.03 75 - 25 5B

Sitara Peroxide 551 - 8.53 9.65 8.17 9.37 0.84 1273990 11.09 7.67 - - - -

Wah-NobleSPOT 90 5.09 42.37 43.50 41.77 43.00 0.63 15310 48.00 41.00 50 - 50 -

Paid up Last 60 days 2009 2010

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

833.87 862.50 832.79 843.96 10.10 1.21

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

258,895 - - 3,904.20 mn 28,072.30 mn -

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

6.17 1.38 22.31 44.54 7.22 -

Abbott (Lab) 979 7.97 92.00 96.40 90.50 90.90 -1.10 26741 96.40 77.00 120 - 20 -

Ferozsons (Lab) XB 250 5.77 109.00 113.00 86.95 87.94 -21.06 18441 124.00 86.95 10 20B - 20B

GlaxoSmithKline 1707 12.54 68.48 70.50 68.06 69.49 1.01 33160 83.39 65.00 50 - - -

Highnoon (Lab) 165 6.44 24.00 24.75 23.50 23.71 -0.29 23689 25.79 22.10 25 - - -

Otsuka Pak 100 6.53 28.06 30.00 27.50 29.26 1.20 10103 34.99 27.50 15 - - -

Searle PakSPOT 306 5.41 62.65 64.10 62.00 63.11 0.46 113885 64.19 53.36 15 15B 30 -

Paid up Last 60 days 2009 2010

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

693.86 692.46 652.32 676.82 -17.03 -2.45

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

1,223,109 - - 3,242.17 mn 12,091.26 mn -

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

2.63 0.67 25.53 11.08 4.22 -

Pak Int Cont. Terminal XD 1092 7.74 64.06 65.00 60.86 63.05 -1.01 624953 87.86 60.86 - 20B 40 -

PNSC 1321 5.18 38.70 39.00 38.00 38.00 -0.70 11836 41.00 34.50 30 - 15 -

Paid up Last 60 days 2009 2010

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

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

BOOK CLOSURES

Berger Paints Pakistan 18-Oct 26-Oct - - 26-Oct

P.T.C.L 18-Oct 28-Oct - - 28-Oct

Sigma Leasing Corporation 18-Oct 25-Oct - - 26-Oct

Ali Asghar Textile Mills 19-Oct 27-Oct - - 27-Oct

Arpak International 19-Oct 29-Oct - - 29-Oct

Artistic Dewan Mills 19-Oct 27-Oct 20 11-Oct 27-Oct

Biafo Industries 19-Oct 26-Oct 25 11-Oct 26-Oct

Central Forest Products 19-Oct 26-Oct - - 26-Oct

Fauji Cement Co. 19-Oct 25-Oct - - 25-Oct

Fecto Cement 19-Oct 26-Oct - - 26-Oct

Huffaz Seamless Pipe Industries 19-Oct 29-Oct - - 29-Oct

Lucky Cement 19-Oct 26-Oct 40(F) 11-Oct 26-Oct

National Refinery 19-Oct 27-Oct 200 - 27-Oct

Orix Leasing Pakistan 19-Oct 25-Oct - - 25-Oct

Pakistan Oilfields 19-Oct 29-Oct 175 - 29-Oct

Towellers Ltd. 19-Oct 26-Oct - - 26-Oct

Transmission Engineering 19-Oct 25-Oct - - 25-Oct

1st Dawood Investment Bank 20-Oct 26-Oct - - 28-Oct

Attock Cement Pakistan 20-Oct 27-Oct 32.50(F) 12-Oct 27-Oct

Attock Petroleum 20-Oct 28-Oct 200,20(B) - 28-Oct

Dawood Capital Management 20-Oct 26-Oct - - 26-Oct

Dost Steels 20-Oct 27-Oct - - 27-Oct

Ellcot Spinning Mills 20-Oct 26-Oct 35 12-Oct 26-Oct

Escort Investment Bank 20-Oct 27-Oct - - 27-Oct

First Al-Noor Modaraba 20-Oct 04-Nov 5 12-Oct 25-Oct

First Imrooz Modaraba 20-Oct 27-Oct 76 12-Oct 27-Oct

Gauhar Engineering 20-Oct 28-Oct - - 28-Oct

Ghazi Fabrics International 20-Oct 29-Oct 10 12-Oct 27-Oct

Invest & Finance Securities 20-Oct 27-Oct 11.5 12-Oct 27-Oct

Mahmood Textile 20-Oct 30-Oct 60 12-Oct 30-Oct

Nishat Power 20-Oct 28-Oct - - 28-Oct

Premium Textile Mills 20-Oct 26-Oct 50 12-Oct 26-Oct

Prosperity Weaving Mills 20-Oct 26-Oct 30 12-Oct 26-Oct

INDICATIONS

# Extraordinary General Meeting

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

Page 7: The Financial Daily-Epaper-18-10-2010

Monday, October 18, 20107

Technical Analysis Leverage Position

KSE 100 INDEX

Technical Outlook

KSE 100 INDEX closed up 171.36 points at 10,431.84. Volume was 63 per

cent above average and Bollinger Bands were 7 per cent narrower than

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

resistance level at 10,469.30 and 2nd resistance level at 10,506.75, while

Index will continue to find its 1st support level at 10,398.55 and 2nd sup-

port level at 10,365.25.

KSE 100 INDEX is currently 4.7 per cent above its 200-day moving average

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

to the average volatility over the last 10 trading 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) 73.39 Support 1 10,398.55

MA (5-day) 10,369.14 Support 2 10,365.25

MA (10-day) 10,239.71 Resistance 1 10,469.30

MA (100-day) 9,904.44 Resistance 2 10,506.75

MA (200-day) 9,965.78 Pivot 10,436.00

Technical Analysis Leverage Position

Bank Alfalah Ltd

Brokerage House Fair Value Rs Recommendations

Technical Outlook

BAFL closed down -0.26 at 8.85. Volume was 37 per cent below average

and Bollinger Bands were 64 per cent wider than normal.

BAFL is currently 16.4 per cent below its 200-day moving average and is

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

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

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

oscillators are currently bullish on BAFL.

*Arif Habib Ltd 14 Buy

AKD Securities Ltd 10.25 Accumulate

TFD Research 14.01 Positive

RSI (14-day) 57.68 Free Float Shares (mn) 674.58

MA (10-day) 8.90 Free Float Rs (mn) 5,970.02

MA (100-day) 8.85 CFS Shares (mn) N/A

MA (200-day) 10.58 CFS Rs (mn) N/A

Mean 9.13 CFS Rate N/A

Median 9.10 ** NOI Rs (mn) N/A

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

Technical Analysis Leverage Position

Nishat Mills Ltd

Brokerage House Fair Value Rs Recommendations

Technical Outlook

NML closed up 1.62 at 50.86. Volume was 137 per cent above average

and Bollinger Bands were 32 per cent narrower than normal.

NML is currently 3.0 per cent below its 200-day moving average and is dis-

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

average volatility over the last 10 trading sessions. Volume indicators

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

ing oscillators are currently bullish on NML.

*Arif Habib Ltd 65 Buy

AKD Securities Ltd 59.97 Buy

TFD Research 74.2 Positive

RSI (14-day) 68.45 Free Float Shares (mn) 175.80

MA (10-day) 48.82 Free Float Rs (mn) 8,941.18

MA (100-day) 46.47 CFS Shares (mn) N/A

MA (200-day) 52.42 CFS Rs (mn) N/A

Mean 49.90 CFS Rate N/A

Median 50.02 ** NOI Rs (mn) 33.02

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

Technical Analysis Leverage Position

Dera Ghazi Khan Cement Co Ltd

Brokerage House Fair Value Rs Recommendations

Technical Outlook

DGKC closed up 0.71 at 25.70. Volume was 42 per cent below average

and Bollinger Bands were 31 per cent narrower than normal.

DGKC is currently 5.8 per cent below its 200-day moving average and is

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

volatility over the last 10 trading sessions. Volume indicators reflect mod-

erate flows of volume into DGKC (mildly bullish). Trend forecasting oscilla-

tors are currently bullish on DGKC.

*Arif Habib Ltd 44 Buy

AKD Securities Ltd 43.29 Buy

TFD Research 36.85 Positive

RSI (14-day) 58.34 Free Float Shares (mn) 182.55

MA (10-day) 24.83 Free Float Rs (mn) 4,691.53

MA (100-day) 25.03 CFS Shares (mn) N/A

MA (200-day) 27.30 CFS Rs (mn) N/A

Mean 25.59 CFS Rate N/A

Median 25.42 ** NOI Rs (mn) 31.85

* Target price for Dec-10 & **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 0.86 at 29.43. Volume was 35 per cent above average and

Bollinger Bands were 25 per cent wider than normal.

FFBL is currently 1.9 per cent above its 200-day moving average and is

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

volatility over the last 10 trading sessions. Volume indicators reflect mod-

erate flows of volume into FFBL (mildly bullish). Trend forecasting oscilla-

tors are currently bullish on FFBL.

*Arif Habib Ltd 33 Buy

AKD Securities Ltd 32.06 Accumulate

TFD Research 29.1 Neutral

RSI (14-day) 62.98 Free Float Shares (mn) 326.94

MA (10-day) 28.69 Free Float Rs (mn) 9,621.80

MA (100-day) 27.81 CFS Shares (mn) N/A

MA (200-day) 29.39 CFS Rs (mn) N/A

Mean 29.48 CFS Rate N/A

Median 29.38 ** NOI Rs (mn) 3.67

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

Technical Analysis Leverage Position

National Bank of Pakistan

Brokerage House Fair Value Rs Recommendations

Technical Outlook

NBP closed down -0.37 at 64.21. Volume was 9 per cent below average

and Bollinger Bands were 53 per cent narrower than normal.

NBP is currently 3.0 per cent below its 200-day moving average and is dis-

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

average volatility over the last 10 trading sessions. Volume indicators

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

forecasting oscillators are currently bullish on NBP.

*Arif Habib Ltd 78 Buy

AKD Securities Ltd 61.96 Neutral

TFD Research 92.3 Positive

RSI (14-day) 50.18 Free Float Shares (mn) 318.37

MA (10-day) 63.96 Free Float Rs (mn) 20,442.34

MA (100-day) 65.33 CFS Shares (mn) N/A

MA (200-day) 72.32 CFS Rs (mn) N/A

Mean 64.46 CFS Rate N/A

Median 64.54 ** NOI Rs (mn) 57.38

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

Technical Analysis Leverage Position

Pakistan Telecommunication Co Ltd

Brokerage House Fair Value Rs Recommendations

Technical Outlook

PTC closed up 0.02 at 19.29. Volume was 73 per cent below average (con-

solidating) and Bollinger Bands were 48 per cent narrower than normal.

PTC is currently 1.7 per cent below its 200-day moving average and is dis-

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

average volatility over the last 10 trading sessions. Volume indicators

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

forecasting oscillators are currently bullish on PTC.

AKD Securities Ltd 24.04 Buy

TFD Research 30.5 Positive

RSI (14-day) 56.86 Free Float Shares (mn) 584.63

MA (10-day) 19.22 Free Float Rs (mn) 11,277.61

MA (100-day) 18.74 CFS Shares (mn) N/A

MA (200-day) 19.63 CFS Rs (mn) N/A

Mean 19.40 CFS Rate N/A

Median 19.34 ** NOI Rs (mn) 7.77

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

Technical Analysis Leverage Position

MCB Bank Ltd

Brokerage House Fair Value Rs Recommendations

Technical Outlook

MCB closed up 4.49 at 200.08. Volume was 165 per cent above average

(trending) and Bollinger Bands were 21 per cent narrower than normal.

MCB is currently 2.0 per cent below its 200-day moving average and is dis-

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

average volatility over the last 10 trading sessions. Volume indicators

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

ing oscillators are currently bullish on MCB.

*Arif Habib Ltd 194 Hold

AKD Securities Ltd 189.75 Neutral

TFD Research 218.18 Neutral

RSI (14-day) 64.44 Free Float Shares (mn) 342.10

MA (10-day) 194.60 Free Float Rs (mn) 68,446.72

MA (100-day) 193.57 CFS Shares (mn) N/A

MA (200-day) 204.15 CFS Rs (mn) N/A

Mean 196.91 CFS Rate N/A

Median 197.30 ** NOI Rs (mn) 210.10

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

EQUITY INVESTMENT INSTRUMENTS

Performance of SR Equity Investment Instruments Index

Open High Low Close Change % Change

1,025.10 1,056.43 1,006.55 1,033.70 8.60 0.84

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

20,448,608 - - 29,771.58 mn 17,428.14 mn -

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

6.91 0.28 4.09 104.19 26.53 -

1st Fid Leasing 264 - 1.05 1.40 1.05 1.35 0.30 11706 2.24 1.01 - - - -

AL-Meezan Mutual F. XD 1375 2.41 6.11 6.50 5.85 6.25 0.14 77887 7.25 5.85 - - 18.5 -

AL-Noor ModarabaSPOT 210 4.83 2.70 3.00 2.50 2.56 -0.14 29302 3.44 2.50 - - 5 -

Atlas Fund of Funds 525 2.08 3.59 3.89 2.70 2.70 -0.89 19998 4.20 2.53 - - 2.2 -

B R R Guardian Mod. 780 - 1.10 1.45 1.02 1.19 0.09 76604 2.43 0.90 - - 0 -

Crescent St Modaraba 200 2.60 0.70 0.84 0.50 0.65 -0.05 454869 0.90 0.16 - - 1.2 -

Elite Cap Modaraba 113 4.05 2.89 2.90 2.50 2.63 -0.26 288983 3.44 1.65 4.5 - 5 -

Equity Modaraba 524 - 1.10 1.20 1.03 1.19 0.09 447097 1.50 0.76 - - - -

First Capital Mutual F. 300 4.34 3.28 4.04 2.80 4.04 0.76 329395 4.04 0.99 - - - -

First Dawood Mutual F. 581 - 1.63 1.70 1.40 1.70 0.07 140883 2.09 1.36 - - - -

Golden ArrowSPOT 760 3.97 3.58 3.74 3.58 3.65 0.07 243897 3.88 2.32 - - 17 -

H B L Modaraba XD 397 4.82 6.49 6.74 5.45 5.45 -1.04 101124 6.80 4.80 5 - 11 -

Habib Modaraba 1008 4.44 6.00 6.00 5.80 5.90 -0.10 314898 7.49 5.56 20 - 21 -

JS Growth Fund 3180 36.75 3.00 3.20 2.81 2.94 -0.06 181793 4.39 2.70 - - 5 -

JS Value Fund 1186 - 3.04 3.20 2.61 2.80 -0.24 642549 3.98 2.31 10 - 10 -

KASB ModarabaSPOT 283 3.08 1.75 1.95 1.50 1.85 0.10 112175 2.00 0.52 - - 2.8 -

Meezan Bal. Fund XD 1200 2.66 5.60 5.60 5.30 5.50 -0.10 19200 7.49 5.30 - - 15.5 -

NAMCO Bal. Fund 1000 2.55 2.99 3.69 2.40 2.55 -0.44 7256399 3.70 2.25 5 - 15 -

Pak Modaraba 125 1.82 0.90 1.40 0.30 1.00 0.10 85005 1.40 0.25 - - 3 -

Pak Prem Fund 1698 3.82 7.80 8.20 7.70 8.02 0.22 1063131 9.86 7.00 - - 18.6 -

Pak Strat Fund 3000 5.51 6.90 7.24 6.91 7.05 0.15 603955 8.10 6.01 - - 11.53 -

Paramount Mod. SPOT 59 7.99 8.80 9.45 8.55 8.95 0.15 20667 9.45 6.55 15 - 18 -

PICIC Energy Fund 1000 2.93 5.09 5.50 4.90 5.50 0.41 610089 6.49 4.00 - - 5 -

PICIC Growth Fund 2835 2.31 8.52 8.69 8.01 8.42 -0.10 2914703 10.55 7.60 - - 20 -

PICIC Inv Fund XD 2841 1.91 3.61 3.86 3.50 3.79 0.18 1284027 5.00 3.50 - - 10 -

Prud Modaraba 1st XD 872 2.47 1.00 1.00 0.89 0.94 -0.06 58439 1.20 0.70 - - 3 -

Punjab Modaraba 340 - 1.20 1.49 0.97 1.29 0.09 31438 2.00 0.57 - - - -

Stand Chart Mod. XD 454 5.03 8.75 8.98 7.85 8.85 0.10 57343 10.99 7.75 16.5 - 17 -

Tri-Star 1st Modaraba 212 7.11 1.96 3.10 1.26 2.70 0.74 12541 7.12 0.50 - - - -

U D L Modaraba 264 3.48 6.48 6.99 6.50 6.68 0.20 113103 6.99 5.00 10 - 12.5 -

Paid up Last 60 days 2009 2010

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

349.95 373.06 345.97 356.16 6.21 1.78

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

37,737,740 - - 30,336.44 mn 25,504.06 mn -

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

0.44 0.16 37.22 4.60 10.56 -

AMZ Ventures 225 - 0.58 0.74 0.46 0.52 -0.06 418900 1.10 0.42 - - - -

Arif Habib Limited XB 450 6.47 26.30 26.97 24.95 25.96 -0.34 231196 47.70 24.62 15 25B - 20B

Arif Habib Securities 3750 2.19 23.15 23.50 22.10 22.22 -0.93 11010654 34.99 20.90 - - 30 -

Dawood Cap Mangt. XB 150 - 1.44 1.99 1.05 1.20 -0.24 20420 2.69 0.50 - - - -

Dawood Equities 250 - 1.90 2.16 1.80 1.99 0.09 6402 3.36 1.55 - - - -

Grays Leasing 215 - 1.61 2.72 1.00 2.19 0.58 5839 4.00 0.32 - - - -

IGI Investment Bank 2121 - 1.75 2.06 1.77 2.01 0.26 105555 2.43 1.17 - - - -

Invest and Fin SecSPOT 600 2.84 7.39 8.88 7.47 8.14 0.75 44129 9.00 6.90 - - 11.5 -

Invest Bank 2849 - 0.67 0.85 0.57 0.69 0.02 63423 1.16 0.44 - - - -

Ist Cap Securities 2878 1.85 4.32 4.80 3.60 4.49 0.17 316899 5.40 2.54 - 10B - 10B

Ist Dawood Bank 626 0.29 1.82 1.98 1.71 1.72 -0.10 198401 2.84 1.17 - - - -

Jah Siddiq Co 7633 - 9.16 9.81 8.85 9.30 0.14 19867059 15.47 8.80 -243.778B 10 -

JOV and CO 508 - 2.36 2.52 2.20 2.27 -0.09 1391076 5.95 1.96 - - - -

JS Global Cap XD 500 - 26.38 26.62 24.25 25.31 -1.07 192470 42.00 24.25 150 - - -

JS Investment 1000 12.89 5.65 6.15 5.50 5.80 0.15 855805 8.52 5.10 - - - -

Orix Leasing 821 4.13 5.25 5.69 5.20 5.25 0.00 116528 5.95 3.66 - - - -

Pervez Ahmed Sec 775 - 1.56 1.82 1.46 1.69 0.13 1016822 2.73 1.35 -231.08R - -

Sec Inv Bank 514 - 2.50 2.60 2.00 2.60 0.10 10000 3.80 1.65 - - - -

Stand Chart Leasing 978 5.50 2.30 2.44 2.25 2.42 0.12 13567 3.49 1.50 - - - -

Trust Inv Bank 586 - 1.87 2.87 1.24 1.26 -0.61 6191 4.25 1.24 - - - -

Paid up Last 60 days 2009 2010

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

825.69 857.44 800.26 851.23 25.55 3.09

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

170,401 - - 2,290.72 mn 9,672.23 mn -

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

92.54 3.56 3.85 355.53 3.84 -

EFU Life Assurance XB 850 38.03 60.50 69.97 61.00 69.97 9.47 57340 84.99 51.25 5513.33B - -

New Jub Life Insurance 627 54.04 42.20 43.75 40.65 43.23 1.03 33932 46.00 34.50 10 - - -

Paid up Last 60 days 2009 2010

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

967.73 1,010.53 964.25 996.01 28.28 2.92

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

96,255,702 - - 257,548.02 mn 603,637.80 mn -

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

7.00 0.94 13.45 34.35 4.91 -

Allied Bank Limited 7821 5.78 52.19 54.00 52.00 53.51 1.32 392078 59.70 48.51 40 10B 20 -

Askari Bank 6427 6.19 14.71 15.35 14.50 14.98 0.27 4694844 17.15 13.99 - 20B - -

Atlas Bank 5001 - 2.18 2.43 2.01 2.17 -0.01 7287811 2.84 1.52 - - - -

Bank Alfalah 13492 11.80 9.11 9.39 8.81 8.85 -0.26 19776921 10.25 7.32 8 - - -

Bank AL-Habib 7322 6.95 32.11 33.75 31.71 32.25 0.14 1192587 34.00 29.10 20 20B - -

Bank Of Khyber 5004 3.15 3.14 3.60 3.02 3.15 0.01 71457 4.75 2.50 - - - -

Bank Of Punjab 5288 - 8.31 8.49 8.04 8.10 -0.21 2906219 10.97 7.35 - - - -

BankIslami Pak 5280 - 3.14 3.35 3.10 3.24 0.10 543758 3.87 2.31 - - - -

Faysal Bank 6091 3.14 13.60 14.14 13.50 13.62 0.02 460525 15.58 12.75 - - - -

Habib Bank Ltd 10019 6.44 97.93 102.50 97.20 100.01 2.08 1315022 109.10 92.00 60 10B - -

Habib Metropolitan Bank 8732 5.85 19.46 19.80 19.00 19.77 0.31 354969 23.50 18.02 10 16B - -

JS Bank Ltd 6128 - 2.43 2.65 2.29 2.38 -0.05 1730973 2.92 2.00 - - - 66R

KASB Bank Ltd 9509 - 2.54 2.90 2.25 2.50 -0.04 246620 3.70 2.03 - 26B - -

MCB Bank Ltd 7602 9.33 195.59 200.90 193.70 200.08 4.49 6710670 214.99 180.40 110 10B 55 -

Meezan Bank 6983 7.40 14.93 15.95 14.85 15.25 0.32 994670 16.45 13.80 - 5B - -

Mybank Ltd 5304 - 2.23 2.53 2.10 2.23 0.00 284062 3.14 1.62 - - - -

National Bank 13455 5.39 64.58 65.30 63.77 64.21 -0.37 6978025 73.89 60.51 75 25B - -

NIB Bank 40437 - 3.08 3.11 2.82 2.83 -0.25 8293998 3.50 2.42 - - - -

Royal Bank Ltd 17180 - 5.76 6.30 5.72 6.14 0.38 215924 12.50 5.20 - - - -

Samba Bank 14335 - 1.87 2.00 1.72 1.96 0.09 251482 2.90 1.55 - - -63.46R

Silkbank Ltd 26716 12.86 3.00 3.01 2.78 2.83 -0.17 5066118 3.30 2.15 - - - -

Soneri Bank 6023 - 5.75 6.50 5.62 6.25 0.50 329979 7.75 5.01 - - - -

Stand Chart Bank 38716 9.30 6.30 6.90 6.25 6.51 0.21 87120 8.50 6.00 - - - -

United Bank Ltd 12242 6.24 52.25 53.65 52.00 53.03 0.78 4550054 60.20 49.90 25 10B 10 -

Paid up Last 60 days 2009 2010

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

625.40 680.64 621.69 666.15 40.75 6.52

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

8,694,130 - - 11,111.34 mn 42,088.82 mn -

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

10.76 0.56 5.20 79.54 7.39 -

Adamjee Insurance XD 1237 13.02 67.43 72.79 65.55 71.63 4.20 3772180 89.90 63.05 30 10B 10 -

Paid up Last 60 days 2009 2010

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

1,708.96 1,720.63 1,652.22 1,680.18 -28.78 -1.68

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

3,371,130 - - 12,202.80 mn 37,203.22 mn -

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

12.35 1.41 11.41 66.79 5.41 -

Sui North Gas 5491 18.82 32.58 33.00 31.40 32.00 -0.58 2095366 33.40 25.00 - - -

Paid up Last 60 days 2009 2010

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

1,143.86 1,180.27 1,136.49 1,173.39 29.53 2.58

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

32,674,446 - - 95,369.29 mn 96,671.57 mn -

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

12.29 1.15 9.35 104.13 8.47 -

Genertech 198 - 0.95 0.95 0.60 0.75 -0.20 64192 1.53 0.51 - - - -Hub Power 11572 6.21 33.14 33.79 32.97 33.54 0.40 6666374 37.24 32.75 33.5 - 50 -Japan Power 1560 - 1.40 1.73 1.33 1.60 0.20 259009 2.28 0.70 - - - -KESC 7932 - 2.09 2.20 2.01 2.19 0.10 1115556 2.63 1.92 - 31R - 7.8RKohinoor Energy 1695 5.79 23.50 24.49 23.00 23.50 0.00 40313 26.50 23.00 45 - 15 -Kohinoor Power 126 2.49 5.10 5.50 4.50 5.00 -0.10 68568 6.70 3.90 - - - -Kot Addu Power XD 8803 6.81 41.47 41.95 38.35 39.35 -2.12 4717738 44.85 38.35 64.5 - 50 -Sitara Energy LtdSPOT 191 3.85 21.50 21.85 21.00 21.60 0.10 13796 23.49 20.00 20 - 20 -Southern Electric 1367 6.38 2.13 2.53 2.05 2.49 0.36 2548096 3.21 2.05 - - - -Tri-star Power XD 150 - 0.75 0.94 0.72 0.75 0.00 18401 1.60 0.33 3 - - -

Paid up Last 60 days 2009 2010

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

1,117.79 1,169.96 1,112.08 1,148.39 30.61 2.74

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

23,689,324 - - 50,077.79 mn 79,235.09 mn -

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

6.19 0.79 12.84 62.56 10.11 -

Pak DatacomSPOT 78 5.13 97.34 106.00 91.00 104.00 6.66 23387 120.61 91.00 70 - 80 -

Pakistan Telecomm Co A 37740 9.19 19.27 19.63 19.05 19.29 0.02 6848987 20.22 17.32 15 - 17.5 -

Telecard 3000 - 2.18 2.63 2.11 2.47 0.29 6645813 3.08 1.80 - - - -

WorldCall Tele 8606 - 2.60 2.98 2.53 2.82 0.22 10856733 3.30 2.30 - - - -

Paid up Last 60 days 2009 2010

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

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

Atlas Insurance 369 4.54 29.15 30.99 28.81 30.75 1.60 24766 31.00 27.10 40 10B - -

Central Insurance XB 279 5.18 47.75 50.80 48.95 50.00 2.25 5023 64.90 47.37 20 25B 10 10B

Century Insurance 457 6.15 10.32 11.99 9.45 10.94 0.62 18812 11.99 9.42 - - - -

EFU General Ins. XB 1250 31.77 36.14 40.03 35.60 40.03 3.89 77806 54.50 34.76 40 8.7B - -

Habib Insurance 400 7.56 10.21 11.50 10.15 10.89 0.68 23552 13.89 10.04 35 - - -

IGI Insurance 718 13.71 73.94 81.50 72.01 77.60 3.66 191669 81.50 66.02 35 - 10 20B

Pak Reinsurance 3000 - 14.11 15.25 13.61 14.47 0.36 3880978 19.26 12.50 30 - - -

Pak Gen Insurance 250 1.37 6.88 6.89 5.65 5.79 -1.09 19831 8.20 5.06 5 25B - -

PICIC Ins Ltd 350 59.50 2.34 2.65 2.00 2.38 0.04 73569 4.16 1.66 - - - -

Premier Insurance 303 4.84 8.77 8.98 8.00 8.95 0.18 177436 10.60 8.00 20 15B - -

Reliance Insurance XB 252 5.05 6.50 7.38 6.25 7.38 0.88 5462 7.38 6.02 - - - -

Silver Star Insurance 253 1.77 6.54 8.17 6.25 7.10 0.56 14575 10.00 6.00 - 20B - -

Universal Insurance 210 - 3.10 3.10 2.55 3.00 -0.10 12055 4.00 1.77 - - - -

UPTO 5000 VOLUME

SERT 0.14 0.75 0.74 0.74 0.60 5000DADX 24.24 27.25 24.24 24.77 0.53 4948FECTC 5.00 6.50 4.25 5.78 0.78 4906KCL 4.84 8.75 5.00 8.53 3.69 4835MIRKS 57.50 61.84 55.24 59.17 1.67 4788CPL 161.85 164.85 161.00 161.01 -0.84 4402ICL 22.50 22.57 21.39 22.57 0.07 4200CLOV 44.13 49.45 42.61 49.45 5.32 4094QUET 30.23 31.65 27.15 27.15 -3.08 4032GWLC 3.32 3.85 2.75 3.49 0.17 3988ATLH 97.69 99.99 94.65 96.02 -1.67 3895SANSM 14.00 14.25 13.50 13.90 -0.10 3754MSOT 20.30 20.00 18.51 19.50 -0.80 3753FIMM 57.65 54.90 48.65 48.65 -9.00 3554UNIC 4.65 5.06 4.55 5.05 0.40 3531PAKT 113.50 120.00 112.00 115.26 1.76 3444COLG 716.71 769.99 695.95 740.00 23.29 3426BGL 1.26 1.80 1.40 1.80 0.54 3233PPP 40.00 39.95 38.61 39.10 -0.90 3228AGL 23.97 23.90 22.10 22.26 -1.71 3213MEHT 66.56 68.80 60.25 64.98 -1.58 3188PNGRS 5.48 6.00 5.44 5.80 0.32 3160RUPL 35.02 35.75 34.85 34.90 -0.12 3039GAMON 1.51 2.27 1.40 2.14 0.63 3002MTIL 0.58 0.70 0.14 0.60 0.02 2876NJICL 55.00 55.99 52.75 53.77 -1.23 2783CRTM 20.50 23.50 20.52 23.50 3.00 2598UNIM 0.13 0.50 0.13 0.15 0.02 2500MODAM 0.98 1.12 0.77 0.91 -0.07 2351GFIL 3.26 4.94 3.65 4.40 1.14 2310SNAI 29.32 30.99 28.31 29.75 0.43 2283BATA 446.61 479.50 436.00 454.05 7.44 2259JVDC 59.36 61.95 59.00 60.00 0.64 2214LEUL 1.89 1.99 1.35 1.89 0.00 2211PCAL 53.50 56.50 50.00 54.50 1.00 2165MUKT 0.53 0.79 0.35 0.46 -0.07 2119MZSM 4.95 5.35 4.70 4.94 -0.01 2100SFWF 8.00 8.49 8.00 8.49 0.49 2099NONS 11.10 12.40 11.16 12.22 1.12 2066SSOM 3.05 3.05 3.00 3.00 -0.05 2000ACCM 0.30 0.85 0.24 0.85 0.55 2000MACFL 2.42 3.50 1.60 2.51 0.09 1993SING 18.50 19.15 17.30 17.80 -0.70 1838DWSM 1.50 1.90 1.25 1.42 -0.08 1824ISIL 76.45 74.00 70.08 74.00 -2.45 1721STCL 8.90 8.98 8.16 8.95 0.05 1662SMCPL 6.51 6.95 6.10 6.20 -0.31 1641NPSM 23.00 24.66 21.85 22.00 -1.00 1584WAZIR 5.20 6.20 4.75 5.21 0.01 1507QUICE 2.85 3.40 2.85 3.00 0.15 1500SKRS 3.00 3.35 3.23 3.23 0.23 1500AZTM 1.00 1.00 0.21 0.50 -0.50 1500GTYR 22.52 22.50 22.11 22.50 -0.02 1493SAPT 103.36 104.90 90.00 97.50 -5.86 1458ATEL 17.00 17.95 17.00 17.00 0.00 1435APOT 3.00 4.00 3.00 3.99 0.99 1402TRSM 2.54 3.25 2.10 2.75 0.21 1376BFMOD 4.13 4.35 3.80 4.30 0.17 1340ARM 15.95 16.00 15.95 16.00 0.05 1284BUXL 10.50 11.87 10.00 10.00 -0.50 1229MERIT 16.90 16.20 15.26 16.00 -0.90 1216ISTM 4.25 4.98 4.50 4.94 0.69 1143KSBP 78.05 80.00 74.00 77.70 -0.35 1124SHCM 15.00 14.00 11.00 11.00 -4.00 1112AATM 1.00 1.00 1.00 1.00 0.00 1092AGIC 11.06 11.95 10.91 11.94 0.88 1011BROT 0.50 0.89 0.25 0.89 0.39 1004BTL 50.00 51.25 47.50 51.25 1.25 1002HACC 6.00 6.60 6.00 6.60 0.60 1000JATM 3.99 3.99 3.00 3.00 -0.99 1000SHNI 13.38 13.38 12.35 12.35 -1.03 1000FNBM 7.05 7.40 7.05 7.05 0.00 1000NESTLE 1961.62 2057.99 1880.00 1941.00 -20.62 851ALQT 3.75 4.75 3.26 3.26 -0.49 806BWHL 30.43 32.00 29.00 30.40 -0.03 784SHEZ 98.00 97.70 91.50 95.00 -3.00 775JKSM 6.50 7.15 6.00 6.70 0.20 744AASM 32.79 35.00 31.85 35.00 2.21 731ADAMS 11.23 12.50 11.26 12.50 1.27 700NAKI 16.00 17.00 16.00 17.00 1.00 700HINO 119.83 126.00 113.06 119.99 0.16 695SPLC 0.63 0.80 0.51 0.54 -0.09 692PAKL 2.50 5.70 2.51 4.95 2.45 644SCL 53.60 60.00 53.60 57.36 3.76 617GATI 40.45 41.90 38.03 41.80 1.35 605SGMLPS 3.50 4.50 3.50 3.80 0.30 533SAPL 116.20 120.00 119.90 120.00 3.80 525PGCL 18.41 19.40 18.40 18.65 0.24 516BIFO 39.82 40.50 36.20 38.00 -1.82 506HUSI 10.22 10.90 9.99 10.79 0.57 506FTHM 115.25 115.25 113.00 113.00 -2.25 505DFSM 3.10 3.98 3.00 3.97 0.87 501CEFP 3.50 3.50 3.50 3.50 0.00 500SKFL 1.25 1.25 1.10 1.10 -0.15 500PUNO 34.00 37.48 34.00 37.48 3.48 500SUHJ 12.00 12.00 11.00 11.10 -0.90 500SFAT 3.00 3.50 2.76 3.17 0.17 381CSIL 6.25 7.00 3.50 4.99 -1.26 372SZTM 7.48 7.30 6.26 6.49 -0.99 337WYETH 910.00 905.00 830.00 830.06 -79.94 329LPGL 9.50 14.46 9.00 14.45 4.95 324HUSS 13.50 13.40 12.40 13.40 -0.10 300COTT 1.98 1.85 1.50 1.50 -0.48 300GUTM 22.54 24.84 22.00 24.40 1.86 276FNEL 10.32 10.50 9.25 10.25 -0.07 265KOHS 4.45 4.10 3.90 3.90 -0.55 234LMSM 2.05 3.00 1.10 2.50 0.45 219EXIDE 139.74 142.90 139.74 142.90 3.16 218MFFL 62.00 68.18 61.81 61.81 -0.19 202DIIL 16.70 16.20 13.20 14.69 -2.01 193STML 16.76 17.60 16.51 17.50 0.74 175SIEM 1150.00 1189.99 1136.00 1189.99 39.99 145TSMF 2.12 2.20 1.27 1.99 -0.13 112LIBM 54.60 55.00 55.00 55.00 0.40 101TRPOL 0.34 0.74 0.40 0.74 0.40 101BWCL 25.99 25.99 24.70 24.70 -1.29 100PSEL 148.98 155.00 143.12 154.58 5.60 99FRCL 3.90 4.00 2.20 3.90 0.00 86FIBLM 2.30 2.50 1.30 1.99 -0.31 78RMPL 1309.25 1390.00 1252.00 1370.00 60.75 73FASM 31.13 34.95 31.10 34.95 3.82 59RCML 24.00 29.16 25.20 29.16 5.16 51ESBL 2.58 2.74 2.48 2.74 0.16 51FZTM 353.16 359.95 320.00 320.00 -33.16 48FCONM 1.48 1.97 0.90 1.87 0.39 42AABS 95.00 97.00 92.15 96.00 1.00 33BAFS 49.99 52.00 49.45 51.90 1.91 32AWTX 105.00 100.00 95.00 95.00 -10.00 16PHDL 56.05 53.25 45.67 47.95 -8.10 16IDEN 11.00 12.00 12.00 12.00 1.00 16ULEVER 3990.00 4220.00 3900.01 4007.50 17.50 15MSCL 9.40 10.09 9.10 9.10 -0.30 14UPFL 1030.00 1030.00 1020.00 1030.00 0.00 12NMBL 0.90 1.14 0.90 1.14 0.24 11

Symbols Open High Low Close Change Vol

Al-Abbas Cement 42.97 2.90 2.70 3.40 3.70 3.20

Allied Bank Limited 60.31 53.30 53.05 53.90 54.25 53.65

Attock Cement 39.60 62.45 61.50 64.95 66.50 64.00

Arif Habib Limited 36.96 25.40 24.80 26.75 27.55 26.20

Arif Habib Securities 41.01 21.85 21.50 22.80 23.40 22.45

Adamjee Insurance 60.90 70.90 70.15 72.60 73.55 71.85

Askari Bank 55.17 14.85 14.75 15.20 15.45 15.10

Azgard Nine 48.82 9.95 9.75 10.55 10.95 10.35

Attock Petroleum 70.62 362.40 360.25 368.30 372.05 366.15

Attock Refinery 67.04 89.40 87.95 92.40 93.95 90.95

Bank Alfalah 57.68 8.70 8.55 9.10 9.40 8.95

BankIslami Pak 53.49 3.20 3.15 3.30 3.35 3.25

Bank Of Punjab 43.83 8.00 7.95 8.25 8.35 8.15

Dewan Cement 50.06 1.35 1.20 1.85 2.15 1.70

DGK Cement 58.34 25.35 24.95 26.00 26.30 25.65

Dewan Salman 52.28 1.40 1.35 1.55 1.60 1.45

Dost Steels Ltd 58.47 2.10 2.00 2.40 2.60 2.30

EFU General Insurance 60.10 39.35 38.70 41.35 42.70 40.70

EFU Life Assurance 73.45 68.80 67.65 72.30 74.65 71.15

Engro Chemical 51.89 175.75 174.35 179.40 181.65 178.00

Faysal Bank 49.27 13.40 13.20 14.00 14.35 13.75

Fauji Cement 55.08 4.85 4.65 5.10 5.15 4.90

Fauji Fert Bin 62.98 28.95 28.45 30.00 30.55 29.50

Fauji Fertilizer 61.91 107.70 107.20 108.70 109.20 108.20

Habib Bank Ltd 59.40 99.60 99.20 100.70 101.40 100.30

Hub Power 47.21 33.35 33.20 33.70 33.90 33.55

ICI Pakistan 53.61 120.50 119.50 123.00 124.45 122.00

Indus Motors 54.51 227.60 225.95 231.55 233.85 229.90

JOV and CO 32.21 2.20 2.10 2.40 2.55 2.35

Japan Power 54.60 1.50 1.40 1.70 1.85 1.60

JS Bank Ltd 48.83 2.30 2.25 2.40 2.45 2.35

Kot Addu Power 29.58 38.65 37.90 39.80 40.20 39.05

KESC 60.37 2.10 2.00 2.25 2.30 2.15

Lucky Cement 63.60 72.80 72.35 73.90 74.50 73.40

MCB Bank Ltd 64.44 196.90 193.70 202.10 204.10 198.90

Maple Leaf Cement 44.53 2.80 2.75 2.90 2.95 2.85

National Bank 50.18 63.80 63.35 64.95 65.65 64.50

Nishat (Chunian) 69.63 18.50 17.90 19.50 19.85 18.90

Netsol Technologies 48.07 18.15 17.80 19.00 19.50 18.65

NIB Bank 52.18 2.75 2.70 2.95 3.05 2.90

Nimir Ind.Chemical 56.02 1.35 1.25 1.60 1.70 1.45

Nishat Mills 68.45 50.20 49.55 51.30 51.80 50.65

Oil & Gas Dev. XD 69.46 149.95 148.70 151.95 152.70 150.70

PACE (Pakistan) Ltd. 58.52 2.65 2.35 3.25 3.50 2.90

Pervez Ahmed Sec 54.57 1.65 1.60 1.80 1.85 1.70

PIAC(A) 51.88 2.15 2.10 2.25 2.30 2.20

Pioneer Cement 53.46 7.90 7.75 8.25 8.45 8.10

Pak Oilfields 71.59 246.85 244.80 250.60 252.30 248.55

Pak Petroleum 52.92 185.00 183.60 187.30 188.20 185.90

Pak Suzuki 50.42 73.40 71.80 76.30 77.60 74.70

PSO XD 56.41 271.45 269.80 275.80 278.50 274.15

PTCLA 56.86 19.10 18.95 19.45 19.65 19.30

Shell Pakistan 44.88 193.35 192.50 195.30 196.40 194.45

Sui North Gas 64.99 31.55 31.15 32.45 32.95 32.05

Sitara Peroxide 66.20 8.95 8.50 9.75 10.10 9.30

Sui South Gas 68.35 28.80 28.30 29.70 30.15 29.25

Telecard 63.92 2.40 2.35 2.60 2.70 2.50

TRG Pakistan 51.70 3.90 3.85 4.20 4.35 4.10

United Bank Ltd 52.13 52.80 52.50 53.35 53.70 53.10

WorldCall Tele 65.63 2.75 2.65 2.95 3.05 2.85

Jah Siddiq Co 44.21 9.15 9.00 9.55 9.80 9.40

Company RSI 1st 2nd 1st 2nd Pivot

(14-day) Support Resistance

TECHNICAL LEVELS

Allied Bank Limited 18-Oct 10:30

IGI Investment Bank Ltd 18-Oct 3:00

Pak Oman Advantage Fund 18-Oct 12:30

Pak Oman Advantage Islamic Fund 18-Oct 12:30

Pak Oman Advantage Islamic Income Fund 18-Oct 12:30

Pak Oman Advantage Stock Fund 18-Oct 12:30

Pakistan Tobacco Co Ltd 18-Oct 1:00

Sanofi-Aventis Pakistan Limited 18-Oct 11:00

Askari General Insurance Co Ltd 19-Oct 11:00

BRR Guardian Modaraba 19-Oct 11:00

Biafo Industries Limited 19-Oct 11:30

BOARD MEETINGS

Company Date Time

Page 8: The Financial Daily-Epaper-18-10-2010

Monday, October 18, 2010 8

UK banks banned fromsome credit insurance sales

US insurer,China co topay for bad

home fixturesWILMINGTON: A makerof Chinese drywall, buildersand State Farm Insurancewill pay for hundreds of UShomes that were tainted withfoul-smelling drywall to berenovated, an attorney forhomeowners said.

The parties agreed toremove problem drywall andrebuild up to 300 homes inAlabama, Mississippi,Louisiana and Florida.

The tainted drywall, whichwas imported to rebuild afterseveral catastrophic hurri-canes hit the southern UnitedStates five years ago, hasadded to increased concernsabout the quality of goodsimported from China.

The pilot program "willserve as a guide. It's embry-onic and it looks toward abirth of an eventual globalresolution," said RussHerman of the HermanHerman Katz & Cotlar lawfirm.

Herman is leading the law-suits stemming from thethousands of homes that havebeen rendered uninhabitableby the drywall, which hasbeen blamed for corrodingmetal, foul smells and healthproblems.

If the agreement provessuccessful, it could beexpanded to up to 3,000homes with drywall made byKnauf Plasterboard (Tianjin).

Participating homeownerswill provide a release to StateFarm Insurance, which alongwith other insurers and build-ing suppliers helped fund thepilot.

Herman said the programwould be tweaked andaltered along the way. It willcover removing of drywalland restoring the homes aswell as compensating home-owners for moving, storageand alternate living costs.

The program, and anypotential to expand it, onlycovers homes with drywallmade by a Knauf factory inTianjin. It excludes morethan 5,000 homes taintedwith drywall from otherChinese manufacturers.

Those manufacturers arguethey do not belong in UScourts, and have not partici-pated in the litigation thatwas consolidated with feder-al Judge Eldon Fallon in NewOrleans.

The consolidated litigationis In re Chinese-Manufactured DrywallProducts Liability Litigation,US District Court, EasternDistrict of Louisiana No.MDL-2047.-Reuters

Khi PressClub has

its membersgroup-insuredKARACHI: The Karachi PressClub (KPC) has come up withgroup insurance of its members,said a statement issued by KPC.

The Chairman of State LifeInsurance Corporation (SLIC),Shahid Aziz Siddiqui, on Fridayhanded over the documents inthis regard to the office bearersof the KPC.

A KPC statement said that theoffice bearers of the Club led byits president, Imtiaz KhanFaran, visited the SLIC headoffice and received the docu-ments pertaining to the groupinsurance.-APP

TOKYO: A man walks out the Dai-ichi Mutual Life Insurance

headquarters building.-Reuters

WASHINGTON: Three moreUS banks were closed by regu-lators, bringing to 132 the totalnumber of banks to fail so farthis year.

The Federal DepositInsurance Corp said PremierBank of Jefferson City,Missouri, Security SavingsBank, FSB of Olathe, Kansas,and WestBridge Bank and TrustCo of Chesterfield, Missouri,were closed.

Premier Bank had about$1.18 billion in assets and$1.03 billion in deposits. Thefailure is projected to cost theFDIC deposit insurance fund$406.9 million.

Providence Bank ofColumbia, Missouri, willassume all of the deposits ofPremier Bank, except certain

brokered deposits, and alsoagreed to purchase about$657.9 million of the failedBank's assets, the FDIC said.

Security Savings Bank, FSBhad about $508.4 million inassets and $397 million indeposits. The failure is expect-ed to cost the FDIC depositinsurance fund $82.2 million.

Simmons First National Bankof Arkansas will assumeSecurity Savings Bank'sdeposits and assets.

WestBridge Bank and TrustCompany had about $91.5 mil-lion in assets and $72.5 millionin deposits. The failure willcost the FDIC's fund $18.7 mil-lion.

Midland States Bank ofEffingham, Illinois will assumethe failed Bank's deposits and

assets, the FDIC said.FDIC Chairman Sheila Bair

said recently that the agencystill anticipates that the numberof failures this year will exceedtotal of 140 in 2009, but thattotal assets of this year's fail-ures will probably be lower.

While failures are still occur-ring at a rapid pace, it is nowmostly smaller institutions thathave been collapsing as theydeal with problems in the com-mercial real estate market.Community banks tend to havehigher concentrations of theseloans than larger banks.

Washington Mutual, whichhad $307 billion in assets whenit was seized in September2008, remains the largest Bankto fail during the financial cri-sis.-Reuters

More US banks kissclosure; toll totals 132

ISLAMABAD: ChairpersonBenazir Income SupportProgramme (BISP) FarzanRaja has said that LifeInsurance Initiative underBISP will be launched onNovember 1.As per details it will providecompensation worthRs100,000 to the registeredfamilies who had lost theirbread-earner in any incident.

Farzana Raja gave thesedetails while addressingthe 3rd Annual Conferenceon the International RuralWomen Day arranged byPotohar Organisation forDevelopment and Advocacy(PODA) at Lok Virsa.

Farzana said that anotherinitiative of Waseela-e-Sehat(health insurance) worthRs25,000 will be launchedin the second phase inDecember.

Pakistan People's Party(PPP) manifesto largelyspeaks of the social and eco-nomic empowerment of thewomen and initiated BISPwhich benefitting three mil-lion families.

She said that the pro-gramme will reach 5 to 7million families in the com-ing years and 30 per cent to40 per cent people livingbelow poverty line will beempowered economicallyafter 10 years.

BISP was initiated with theaim to make female segmentof the society economicallystable.

The Rural Women Day isbeing celebrated to renewthe commitments to

acknowledge the role ofrural women, giving themthe right to raise voicesagainst discrimination andinjustices.

She assured the womenparticipants who came fromdifferent rural areas of thecountry that their voiceswould be raised in the par-liament and legislation willbe made to protect theirrights.

BISP cash grant is provid-ed through female head ofthe family and for the pur-pose, it was made obligatoryto get registration fromNadra. More than nine mil-lion women have got theirCNICs in last one and a halfyears.

Farzana said that theprocess of Poverty Surveyhas been initiated to enrollmore and more women asBISP beneficiaries andurged the women to cooper-ate with BISP teams to getvulnerable families regis-tered under the programme.

To a question regarding`Haris' issues in Punjabprovince, Farzana said thatthe issue will be discussedwith the Punjab govern-ment for its earliest resolu-tion.

More than one millionpeople of Punjab are bene-fiting from BISP and the fig-ure will be doubled soon,she said.

Executive Director, PODASameena Nazir, presented aCharter of Rights forWomen in Disaster Situationto Farzana Raja.-APP

Life coverthru BISPlauncheson Nov 1

Staff Reporter

KARACHI: Positive activitiescontinued in the insurancestocks last week at the KarachiStock Exchange (KSE) withmore than 8 million --traded--shares in life and non-lifescrips.

Pak Reinsurance was thevolume leader with 3.88 mil-lion shares followed byAdamjee Insurance with 3.77

million shares. Top gainers ofthe week include EFU LifeAssurance which jumped byRs9.47 to close at Rs69.97 andAdamjee Insurance whichincreased by Rs4.2 to close atRs71.63 while Crescent StarInsurance fell by Rs1.26 toclose at Rs4.99 and NewJubilee Insurance went downby Rs1.23 to close at Rs53.77to be the major losers of theweek.

Insurers’ stocks seea positive last-week

HONG KONG: AmericanInternational Group Inc'sremaining shareholding in AIAGroup Ltd after its listing is notof concern to investors, AIACEO Mark Tucker said Sunday,as the mega offer enters itshome stretch.

AIA, which aims to raise upto $20.5 billion through anHong Kong initial public offer-ing (IPO), said it plans to sellup to 8.08 billion shares in anindicative range of HK$18.38-19.68 each, setting it on courseto be the third-biggest IPO ever.

Tucker, who has about 17years experience of running life

insurance business in Asia, wasnamed AIA CEO in a surprisemove in July replacing MarkWilson. Tucker is credited withbuilding rival Prudential plc'sAsia business.

"There has been an incrediblyenthusiastic response to this,"Tucker told Hong Kong mediavia video conference about theAIA IPO. Shortage of time wasthe only issue he was grapplingwith, Tucker quipped.

"If we could add another addanother 20 hours to a day, thatwould be perfect," Tucker said,flanked by -- Christopher Wei,group chief marketing officer,

Jon Nielsen, regional chieffinancial office, and John Chu,group chief investment officer.

Some analysts have said thatbailed-out insurer AIG's stakein AIA could be an overhang onAIA. Even if AIG exercises allits options under the offer, itwould be left with a 33 per centstake in AIA which it cannotsell for one year.

"This is not a concern. AIGare clear in terms of theirdivestment..., this is not anissue in any of the conversationthat we have had," Tucker, 52,said from San Francisco.-Reuters

AIA shrugs off AIGshareholding overhang

ISLAMABAD: ChairmanNational InsuranceCompany Limited (NICL)Ayaz Khan Niazi has beensent on a long leave afterbeing charged for fraud bythe FIA on the directives ofSupreme Court of Pakistan.

The action was taken byPrime Minister Yousuf RazaGilani.

Supreme Court last weekdirected the CommerceSecretary to lodge a criminal

complaint against theNational InsuranceCompany Limited (NICL)chairman for allegedlyprocuring land on highlyinflated price, thus causing ahuge financial loss to thenational exchequer.

The court directed the FIADG to register a criminalcase and ensure whosoeverhad misappropriated thepublic money is brought tobook.-NNI

Fraud earnsNICL head

“long leave”

‘Resolution’of UK to

buy Bupahealth arm

LONDON: British insur-ance buyout vehicleResolution Plc will buyBupa Health Assurance foraround 102 million pounds($163 million), asResolution continues to snapup assets in the sector andbroaden its product range.

The acquisition of BupaHealth Assurance followshot on the heels ofResolution's takeovers ofAXA's UK life insurancearm earlier this year and lastyear's purchase of FriendsProvident.

Bupa Health Assurance,part of one of Britain's best-known private healthcarecompanies, had 309 millionpounds of assets at the endof 2009 and has ties withmore than 20,000 independ-ent financial advisers.

Resolution said that theacquisition would boost itsearnings and added it couldextract cost savings from thedeal.

"This acquisition willstrengthen our group riskbusiness product range andimprove the profitability ofour Individual Protectionbusiness," said TrevorMatthews, the chief execu-tive of Resolution's FriendsProvident insurance arm.-Reuters

Credit termsease in last3 months:

Fed surveyWASHINGTON: US deal-ers eased credit terms forhedge funds, insurance com-panies and other firms in thethree months to September,a Federal Reserve surveyshowed.

This was the secondinstallment of the Fed'sSenior Credit officerOpinion Survey, which pollsdealers at 20 financial insti-tutions. Its first was releasedin July.

The latest survey showedborrowers drove a hard bar-gain on credit terms. TheFed said a "modest net frac-tion" of dealers expectedcredit terms for hedge funds,insurance companies andothers to ease further overthe coming three months.

The Fed said only a fewrespondents said theyincreased the amount ofresources and attentiondevoted to managing con-centrated credit exposures, anotable contrast to the Junesurvey which showed morethan half of respondents haddone so.

The September surveyincluded a special questionon dealers' assessment ofhow willing their clientswere to take on risk.

Overall, the responseswere mixed. However, theFed said a smaller subset ofonly the largest firms founda majority reported adecrease in client riskappetite since the start of theyear and over the past threemonths.

The Fed also conducts asenior loan officer survey,which tracks lending tomore traditional borrowerssuch as businesses and con-sumers.-Reuters

Page 9: The Financial Daily-Epaper-18-10-2010

LONDON: ManchesterUnited threw away a 2-0 leadafter a Patrice Evra own goaland an error by Edwin van derSar saw them held 2-2 byWest Bromwich Albion whilePremier League leadersChelsea drew 0-0 at AstonVilla on Saturday.

Chelsea, who hit the wood-work twice late in the eveninggame, top the standings with19 points. United, who startedwith striker Wayne Rooney onthe bench, have now drawnfive of their eight leaguegames and are among fourteams on 14.

Arsenal, who came frombehind to beat BirminghamCity 2-1 at the Emirates, andTottenham Hotspur, whoended Fulham's unbeaten startwith a 2-1 win at CravenCottage are level with United.

On Sunday, Everton playLiverpool in the highly-antici-pated derby (1230 GMT) atGoodison Park whileManchester City, who are in

the chasing pack behindChelsea, visit Blackpool(1500).

At Old Trafford, Unitedlooked to be cruising havingtaken a 2-0 lead after 25 min-utes but Evra's own goal and arare blunder from goalkeeperVan der Saar, who dropped theball at the feet of SomenTchoyi, saw the home sidepegged back.

Rooney played in England'sgoalless draw withMontenegro on Tuesday andsaid after the match, contraryto the claims of his club man-ager Alex Ferguson, that hewas fully fit.

Fit or not, the striker wasamong the substitutes againstWest Brom and Fergusonlooked to have got it rightwhen Rooney's replacement,Javier Hernandez, tapped inafter goalkeeper Scott Carsondropped a Nani freekick in thefourth minute.

The Portugal winger thenadded a second on the break.

West Brom, who won atArsenal last month, continuedto press though and within 10minutes of the restart theywere level.

VAN DER SAARBLUNDER

United defender NemanjaVidic was inches away frommaking it 3-0 when he headedagainst a post but momentslater it was 2-1 courtesy ofEvra's own goal.

Then the usually reliableDutchman Van der Saar, facedwith the simplest of catches,let the ball slip from his graspto Tchoyi who gleefullyequalised for the hard-work-ing visitors.

Rooney eventually joinedthe fray for the last 20 min-utes, but played on the leftwing and made little impact asWest Brom ended the gamelooking the more dangerousside.

"It has gone from a fantasticfirst-half performance to giv-ing the game away really, it

should have been four or fiveby halftime," Ferguson toldSky Sports News.

"We've made some gloriouschances and it's frustrating weare not killing teams off. It'snot acceptable for the support-ers or me."

Of Van der Saar's blunder,he said: "Inexplicable, it's amistake that Edwin probablywould make the only time inhis life. The last time he madea mistake like that was proba-bly at primary school."

A win for Chelsea wouldhave taken the championsseven-points clear but, with-out several injured playersincluding forward DidierDrogba, they were below par.

Branislav Ivanovic andNicolas Anelka hit the wood-work but so did Ciaran Clarkfor hard-working Villa.

Arsenal fell behind to aNikola Zigic header, levelledwith a Samir Nasri penaltyand took the points withMarouane Chamakh's impres-

sive run and shot just after thebreak.

The win was spoiled at theend with a straight red card forArsenal midfielder JackWilshere after a wild tacklethat will have embarrassedmanager Arsene Wenger, whoused his programme notes tobemoan the decline in tacklingstandards.

"He got the red card hedeserved," said Wenger.

"But it was his first tackle inthe game and you have toacknowledge that he got a redcard and he deserved it but hedidn't spend the whole gamekicking people, he didn't wantto harm the player -- he mist-imed his tackle."

Spurs also trailed to aDiomansy Kamara goal butRoman Pavlyuchenko quicklylevelled and Tom Huddlestonewon it with a crisp, low shotalthough Fulham were furiousit was allowed to stand afterthe referee ignored a lines-man's offside flag.-Reuters

9Monday, October 18, 2010

Bangladesh's celebrate white-washing ofNew Zealand in ODI cricket series in Dhaka

Stoner winsfourth

straightAustralia GPPHILLIP ISLAND:Ducati's Casey Stonerdelighted his home fans bywinning a fourth consecutiveAustralian Grand Prix atPhillip Island on Sunday.

Stoner, who secured poleposition on his 25th birthday aday earlier, completed the 27-lap race in 41 minutes 9.128seconds, more than eight sec-onds ahead of newly crownedworld champion JorgeLorenzo of Spain on a gustyday at the 4.45km circuit.

Seven-time premier classchampion Valentino Rossifinished third after battlingthrough from eighth on thegrid, snatching the podiumspot from Ducati rider andfuture team mate NickyHayden of the United Stateson the final lap.

"We didn't know what toexpect before the race," abuoyant Stoner told a tele-vised interview, referring tothe changeable weather atPhillip Island that left pitcrews scratching their headsfor most of the weekend.

"Jorge gave it a go andafter I had a couple of sec-ond gap I thought I'd buildon that slightly because hewas running some prettygood times.

"We managed to pull thatgap, get us comfortable andease into the race so we werevery, very happy with thisone."-Reuters

Indo-AussieODI falls

victim to rainKOCHI: Steady overnightrain and an early morningshower washed out the firstone-day internationalbetween India and Australiaon Sunday.

The rain had left puddlesall over the outfield beforethe morning downpour endedany hopes of the match tak-ing place, much to the disap-pointment of the 30,000spectators that braved theweather to fill the JawaharlalNehru Stadium.

Visakhapatnam is sched-uled to host the second of thethree-match series onWednesday, while Margao isthe venue of the final conteston Oct. 24.

India have already com-pleted a 2-0 sweep in the testseries between the sides.-Reuters

Canadaconcerned

over shrinkin cricketWC size

LONDON: Chandra Gocool,Cricket Canada's chief execu-tive, has questioned the ICC'sthinking on developing cricketaround the world following thedecision to shrink the 2015World Cup to 10 teams, butexpand the World Twenty20 to16 teams.

"Being an Associate Membercountry that has moved pastT20 being the 'lightning rod' toour development, as we playthe other two forms of the gamecurrently, it begs the question -what do we aspire to?" Gocooltold ESPNcricinfo.

The ICC has asked its gov-erning council to examine theissue of qualification for ICCglobal events and make recom-mendations to the board, butGocool says a 10-team eventmakes the likelihood of anAssociate Member playing inthe World Cup a challengingprospect. "Much depends onwhat the qualification processwill look like for Associates togrow and be able to be part ofthis event in future."-Online

BERNE: World soccer's gov-erning body FIFA said onSunday it would investigate anewspaper report that twomembers of its executive com-mittee had offered to sell theirvotes in the contest to host the2018 World Cup.

The Sunday Times newspa-per said the offers had beenmade to its reporters who wereworking undercover and posedas lobbyists for a consortiumof American private compa-nies.

The report said Nigeria'sAmos Adamu was filmed ask-

ing for money for a personalproject and that OceaniaFootball Confederation presi-dent Reynald Temarii fromTahiti wanted money for asports academy.

FIFA will decide onDecember 2 in Zurich whichcountries will host the 2018and 2022 World Cups. Thechoices will be made by the24-strong executive committee

"FIFA has already requestedto receive all of the informa-tion and documents related tothis matter (the Sunday Timesreport), and is awaiting to

receive this material," FIFAsaid in a statement.

"In any case, FIFA willimmediately analyse the mate-rial available and only oncethis analysis has concludedwill FIFA be able to decide onany potential next steps.

"In the meantime, FIFA isnot in a position to provide anyfurther comments on this mat-ter."

England and Russia are bid-ding for the 2018 finals alongwith joint bids fromSpain/Portugal andBelgium/Netherlands.-Reuters

FIFA to probe WCvote-selling report

LAHORE: Pakistan's SamirIftikhar avenged his singlesquarter final defeat by worldnumber 140th Lenz Julian byteaming with Jannis Kahlke ofGermany to upset top seededIndo/German Pair of BavaHaden and Lenz Julian 6/2 7/6to lift the Doubles Title of ITFG4 Junior World RankingTournament held at Aviationclub Dubai.

Samir and Kahlke displayedbrilliant Tennis with powerfulreturn of serves and net play tooust the top seeds and won thefirst set with much ease andcomfort,said the informationmade available here.

The Indo-German pair ofBawa and Lenz put up strongresistance in the 2nd set andheld two set points at 5/6 on

Samir's serves who saved withtwo aces and won the 2nd setin the tie break.

This is 4th title ITF Juniorranking title for Samir who is2nd junior from Pakistan afterAisam ul Haq to achieve thisfeat.

The Pak German pair earlierplayed best match of the tour-nament by staging Gallantfight back against 3rd seedGerman Duo of ChristConstantin and Gohlke Delffrom one set down and saved 4match points in the second setat 4/5 to win 7/5 and 10/2 inthe Super Tie Break to move tofinal.

The match turned out to be athriller when Samir andKahlke were broken twice inthe first set and went down

2/6. They made magnificentcome back in the second set asboth sides held serves till andSamir and Partner were brokenin the 7th game to trail 3/5 andwere 4 match points down tomake come magnificent comeback with superb return ofserves and play to make 5games all and clinched the setat 7/5 and went into super tiebreak decider where theyraised their games to highestlevels and exhibited brilliantcourt Kraft to clinch the tiebreak at 10/2.

"I am pleased to win the dou-bles title for the country and Iam confident that ministry ofsports will continue extendingfinancial assistance for myparticipation in other ITFevents", he said.-APP

Samir grabs ITFJunior tennis crown

Van der Sar blunder costs United dearly

LIVERPOOL: Liverpool's newowners John W Henry and TomWerner changed their minds anddecided to attend Sunday's localderby away to Everton afteroriginally saying they wouldwait for a home match. Henry'sNew England Sports Ventures,owners of the Boston Red Sox,completed a takeover of thePremier League club.

Henry said at the time that heand NESV chairman Wernerwould wait and have their firstexperience with supporters atAnfield, Liverpool's home stadi-

um. "We're football fans andwe're here to root on the teamand hopefully let the focus be onthe pitch," Werner told Sky tele-vision at Goodison Park onSunday.

"I know this is a very impor-tant game. It's a very excitingday for both teams and I want totake in the experience."

Liverpool head into the gamein the relegation zone with justsix points from seven games --the same as Everton who sit aplace above them in 17th.-Reuters

New Liverpoolowners to watch

debut derby

DHAKA: Paceman RubelHossain stunned New Zealandwith four wickets to helpBangladesh beat the tourists bythree runs on Sunday and com-plete a 4-0 series sweep.

New Zealand were bowled outfor 171 with just three ballsremaining and just shy of theirtarget of 174, with Rubel takingthe final wicket when he bowledKyle Mills in a dramatic finish atthe Sher-e-Bangla Stadium.

Rubel finished with four for 25-- his best figures in limited-oversinternationals -- as Bangladeshsuccessfully defended what was ameagre total.

It was the fifth and final one-dayer of the series. One match

was rained off.Rubel removed dangerman

Brendon McCullum and helpedreduce New Zealand to 20-5 withhis fierce opening spell of 3-13before Daniel Vettori and GrantElliott put on 86 for the sixthwicket.

Vettori, the New Zealand cap-tain, made 43 and Elliott top-scored with 59 as the touristsrecovered before the momentumshifted back.

Captain Shakib Al Hasan hadearlier top-scored for Bangladeshwith 36 off 47 balls. Opener ImrulKayes made 34 as the home sidewere bowled out in 44.2 overs.

Vettori took 3-32 and Mills 3-36.-Reuters

Bangladesh cleansweep Kiwis 4-0

SHANGHAI: Britain's worldnumber four Andy Murrayromped to a 6-3 6-2 win overSwitzerland's Roger Federerto claim the Shanghai Masterstitle on Sunday.

The 23-year-old Scot was inimpeccable form throughoutthe one hour 25 minute con-test, breaking the third seed'sserve four times to dismantlethe 16 time grand slam cham-pion and claim his secondMasters title of the season.

"I have had a great week andplayed some of my besttennis, which I had to, tobeat Roger," Murray saidat the trophy presentation

of an event where he didnot lose a set.

The contest was the thirdmeeting in a final between thepair this season with Murraylosing at the Australian Openat the start of the year beforegaining some revenge at theToronto Masters in August.

Federer appeared to run outof steam in the second set asMurray repeatedly sent the29-year-old scurrying fromside-to-side with an array ofpinpoint cross-court winners.

"Andy didn't give me manychances to pull off the reallybig shots today," Federersaid.-Reuters

Murray drubsFederer to liftShanghai title

Sangakkaraeyeing

Australiantest series

COLOMBO: Sri Lanka'sbuild-up to next year's WorldCup continues when they leavefor Australia on Sunday to playa three-ODI series. One of thebiggest challenges ahead ofKumar Sangakkara and histeam is winning next year'smarquee tournament, and there-by emulate the achievement ofArjuna Ranatunga's side whichwon the World Cup in 1996, thelast time it was held in the sub-continent.

"When you play sides as goodas Australia, if there are anysmall weakness they are high-lighted. It will be interesting tosee how far we've come overthe last one-and-a-half years,"Sangakkara said. "Every tourhas brought improvement.What those improvement areasare, sometimes you identify atpractice but sometimes they aremore obvious in games."

The Australian tour and thehome series against the WestIndies starting next monthgives Sri Lanka their onlyopportunity to work on thegrey areas and finalise the line-up.-Online

SHANGHAI: Murray of Britain holds the winner's trophy as he stands next to Federer ofSwitzerland after their final at the Shanghai Masters tennis tournament.-Reuters

n Murray lifts title without losing a setn 2nd Masters tournament win of season

Chelsea drew 0-0 at Aston Villa

MANCHESTER: Manchester United’s van der Sar reacts afterWest Bromwich Albion’s second goal during their English

Premier League soccer match at Old Trafford.-Reuters

Page 10: The Financial Daily-Epaper-18-10-2010

10 Monday, October 18, 2010Analysis & Feature

The Treasury's cur-rency report delays u g g e s t sWashington wants

to give diplomacy anotherchance to convince China itis in everyone's interest tospeed up the yuan's rise.

By delaying the reportuntil after a Group of 20leaders summit in Seoulnext month, the UnitedStates can defuse somepolitical tension. However,it also puts the onus on theG20 to deliver more thanjust rhetoric on foreignexchange rates.

Treasury SecretaryTimothy Geithner probablywon't be winning manyfriends in Congress, wherelawmakers from both politi-cal parties back taking atougher tack on Beijing.

G20 LOOMS LARGER* Currencies were already

front and center at G20 talksafter IMF meetings lastweekend failed to ease ten-sions. Forging consensus insuch a diverse group will behard.

* There does not seem tobe broad support for a "PlazaAccord" type of agreementon how best to realignexchange rates. Europeanofficials have stuck to well-rehearsed statements that

excessive currency volatilityis unwelcome.

* Geithner toughened hiswords somewhat last week,saying markets shoulddetermine exchange rates.

TAKING OUT THEPOLITICS

* Waiting until after theG20 meeting means theObama administration won'thave to reveal its decisionuntil after November 2 con-gressional elections.

* Although China's curren-cy is not a hot-button issuefor voters, it is a source offrustration for unions andmanufacturing-heavy stateswhich are typicallyDemocratic strongholds.

* But the delay could spurCongress to act on legisla-tion that would penaliseChina for keeping the yuanlow. A bill that would punishChina for its currency prac-tices passed in the House ofRepresentatives last monthand two Democratic sena-tors said on Friday Congresswas prepared to move aheadwith legislation.

* Geithner told lawmakersat a September 16 hearingon China's currency that heshared their frustration withBeijing's slow progress inallowing the yuan to rise.The delay may harden some

lawmakers' view thatTreasury is too soft onChina. The yuan has beenthe focal point of relationsthat frequently see tensionsover issues from Tibet andTaiwan to trade.

GREEN LIGHT TOSELL DOLLAR

* The delay does little tochange the status quo forinvestors who will be happyto continue selling dollarsand buying Treasuries inanticipation of the USFederal Reserve pumpingmore dollars in the econo-my.

* It also leaves China freeto allow only gradual yuanappreciation and putsupward pressure on the euro,yen and Australian dollar,which as free-floating cur-rencies tend to absorb mostof the dollar weakness.

* By managing itsexchange rate, China hasbuilt up a massive store of$2.6 trillion in currencyreserves and is the biggestholder of US Treasury debt.Markets fear a move to labelit a manipulator could sparkretaliation, with a worst-case scenario involvingChina selling enoughTreasury debt to provoke asudden spike in US interestrates. -Reuters

US GIVES CURRENCY

DIPLOMACY ANOTHER CHANCE

Expect harsh words but

no concrete retaliation

from Beijing if the

United States labels China a

currency manipulator in a

report due later on Friday.

China is focused on trying to

defuse tensions with the

United States by yielding

some ground in a mini-burst of

yuan appreciation and hopes

that these efforts will still pay

off, even if Washington brands

it a manipulator.

But should the United States

ratchet up the pressure yet fur-

ther by passing into law a bill

that could penalise China,

Beijing will not be so docile,

Chinese analysts say.

"China is telling the United

States that it is willing to help

to resolve the problems.

Things have not gotten out of

hand yet and both sides still

have some room to manoeu-

vre," said Zhao Xijun, an

economist at Renmin

University in Beijing.

president Barack Obama's

administration faces a dead-

line on Friday to decide

whether to formally label

China as a currency manipula-

tor.

A desire to look tough on

"unfair" trade practices ahead

of US congressional elections

on Nov. 2, in which Obama's

fellow Democrats are battling

to retain control of Congress,

could tempt the administration

to cite China for the first time

in 16 years.

The Chinese commerce min-

istry made its feelings clear on

Friday, warning the United

States not to make a scapegoat

of the yuan. Rhetoric aside,

though, Beijing knows that the

currency manipulator designa-

tion carries no specific conse-

quences, apart from forcing

Obama to seek consultations

with China.

PREPARING FOR THE

WORST

A different calculus would

apply if the Senate approved a

bill already passed by the

House of Representatives that

would allow the United States

to slap duties on countries

with undervalued currencies.

"It will be a very serious

issue if the US legislation is

approved by the Senate and

signed by the president," said

Li Wei, a researcher under the

commerce ministry.

For starters, China would

challenge the US law at the

World Trade Organisation -- a

case that some trade experts

think China would be able to

win.

Analysts say Beijing is also

bracing for the law by consid-

ering possible retaliation, from

imposing curbs on US busi-

nesses in China to the so-

called nuclear option of dump-

ing its holdings of US

Treasuries.

But Beijing is not going to

jump the gun. It is first taking

what it sees as pre-emptive

steps to keep US anger from

boiling over -- and to keep the

legislation from becoming

law.

"If China doesn't let the yuan

appreciate a little bit, foreign

criticism will be stronger.

China wants to avoid a trade

war with the United States,"

said Guo Tianyong, an econo-

mist at the Central University

of Finance Economics in

Beijing.

To that end, Beijing has

allowed the yuan to gain 2.6

per cent since it scrapped a 23-

month dollar-peg on June 19,

quickening the appreciation in

recent weeks as pressure

mounted.

ON THEIR OWN TERMS

Ever sensitive to appearing

weak domestically, Chinese

leaders have insisted that the

yuan's rise is not a response to

US pressure but part of a

broader reform agenda to spur

domestic consumption.

They have also said that cur-

rency reforms will be done on

China's own gradual terms.

Central bank chief Zhou

Xiaochuan told International

Monetary Fund meetings in

Washington that demands on

China to let the yuan rise rap-

idly are akin to seeking a

magic cure to a problem that

requires a slow-working,

herbal remedy.

Foreign ministry spokesman

Ma Zhaoxu tried to inject

some levity into the dispute on

Thursday: "If appreciation of a

currency could solve all of the

world's economic problems,

then what use would econo-

mists be?" But it will be no

laughing matter if the United

States follows up the currency

manipulator report with real

punitive measures.

Although retaliation by

China would likely hurt its

own interests, rising national-

istic sentiment on the currency

issue might force the govern-

ment to take a tough stance,

analysts say.

"China wants to use diplo-

macy before a confrontation. It

will have no choice but to

engage in a trade war if all

courteous means fail," Guo, of

the Central University of

Finance Economics, said. -

Reuters

Retaliation in reserve as China faces yuan tensions

US banks concerned theforeclosure crisis could forcethem to pay out billions of dol-lars have very few options forgetting around the problem.

Selling their servicing units,or even just offloading themost troublesome loans, mightseem tempting, but it is unlike-ly to solve legal problemsassociated with the mortgagesand buyers would likely bescarce in any case, analystssaid.

"I don't know what otheroption they have ... They'd be

selling at a time of stress and Idon't think most would dothat," said Ralph Cole, a port-folio manager at FergusonWellman Capital Management.

The banks' servicing busi-nesses are coming underscrutiny from state attorneysgeneral and legislators investi-gating allegations that foreclo-sure documents were flawed.

Possible penalties, themounting costs of reviewinghome- seizure processes andthe growing risk to reputationis making the business less

palatable for major banks.Servicing arms collect mort-

gage payments from home-owners for investors and, insome cases, oversee foreclo-sures.

The four largest US banks byassets dominate mortgageservicing, controlling 55.7 percent of the marketing andadministering more than $5trillion in mortgages.

The two largest mortgageservicers, Bank of AmericaCorp and Wells Fargo & Co,report earnings next week, as

does the fourth-largest ser-vicer, Citigroup Inc. The quar-terly reports are likely to showthe banks are putting moremoney aside to cushion them-selves from higher litigationcosts, but the higher costscome as credit problems ease.

JPMorgan Chase and Co, thethird-largest mortgage ser-vicer, reported third-quarterearnings on Wednesday show-ing it added $776 million to itslitigation reserve and put $622million aside in case it isforced to buy back mortgages

it may have sold with paper-work problems.

THE ADVANTAGES OF

SERVICING

There are advantages toretaining a large servicingbusiness, even as costsincrease, analysts said.Servicing is typically a stablerevenue source for banks thathelps offset more volatile oper-ations such as trading.

"These businesses are too keyto what the big banks are tryingto build as diversified financialservice companies," said Marty

Mosby, a Bank analyst withGuggenheim Securities. "Andall their problems are related toissues in the past, not issuesgoing into the future."

Owning a servicing unit alsogives banks a relationship withborrowers that can be convert-ed into origination business byoffering refinancing and otherproducts, Miller Tabak & Coanalyst Tom Mitchell said.

For a large Bank, having aservicing business is a bit likea retail store with its ownbranded credit card.

"You can capture more of thecustomer's business if youhave that tie in," Mitchell said.

But for smaller servicers, thebenefits may not be so clearcut, particularly if they have tohire additional staff to reviewdocuments, Mitchell added.

Rating agency Moody'sInvestors Service placed threesmaller mortgage servicers --Bayview Loan Servicing,MetLife Home Loans andLitton -- on watch for a creditrating downgrade on Thursday.-Reuters

US banks to stick with troubled servicing units

Taking the axe to pen-sion benefits ratherthan jobs, and cuttingbureaucracy rather

than infrastructure investment,are what Britain's austeritydrive should focus on to ren-der the smallest hit to econom-ic growth.

If finance minister GeorgeOsborne is to achieve the 83billion pounds ($133 billion)of spending cuts he promisedin his June budget somedegree of economic pain isinevitable.

But economists say howhard Britain's growth potentialis hit will ultimately dependnot just on the figures but alsothe profile of the cuts: howthey are spread and how much

of the burden is borne by thewelfare state.

Judging by the drip-feed ofannouncements ahead of nextweek's ComprehensiveSpending Review, Britain'sfive-month-old coalition gov-ernment has taken heed.

In the past two weeks it hasannounced cuts to pension taxrelief, a cull of publicly-fund-ed regulatory bodies and theend of universal child benefitpayments.

Those measures indicate adirection of travel they repre-sent only a small part of theoverall austerity programme.

Although Wednesday's state-ment will not detail everyproject that has been pared orabandoned, it will shape views

on how likely the governmentis to achieve its debt-cuttinggoals and whether recoverywill be blown off course in theprocess.

MULTIPLIER

For each pound spent, differ-ent areas of governmentexpenditure have a differentimpact on GDP growth --something economists knowas the domestic multipliereffect.

These calculations are theo-retical but they throw up someinteresting thoughts on whatan "ideal" austerity packageshould look like, at least fromthe point of view of GDPgrowth.

Construction projects, whichtend to be labour intensive and

require few imports, scorehighly on the multiplier score-card. The same goes for infra-structure investment, whichhas the added benefit ofimproving productivity.

Britain's independent Officefor Budget Responsibility esti-mates every pound of capitalspending by the governmentboosts gross domestic productby exactly that amount, whileevery pound spent on welfaregenerates just 60 pence.

When it comes to the publicsector payroll, savings frompensions and wage restraintare far less damaging to aneconomy's growth potentialthan job cuts which oftenresult in costly redundancypayments and a higher welfare

bill."If I had to give two recom-

mendations it would be not tocut capital spending so muchand to try to find ways of min-imising public sector jobslosses," said JohnHawskworth, head of macro-economics at consultancyPWC.

"The private sector was flex-ible with regard to pay andworking hours during therecession and this meantunemployment did not rise asmuch as feared. We need tosee the same happen now inthe public sector."

WELFARE TRAP

Political history is litteredwith failed government initia-tives to slash the welfare state,

particularly in trying econom-ic circumstances. And thistime, from a growth perspec-tive, Osborne should be waryabout wanting to.

Welfare cuts by nature havea greater impact on poorerfamilies who, according totextbook economic theory atleast, have a higher propensityto consume.

The bulk of welfare spend-ing is also highly dependenton the economic cycle, whichmakes it much less pre-dictable.

"Benefits are more difficultto contain if the economyslows," said Sam Hill, fixedincome strategist at RoyalBank of Canada. "The pres-sure to find more savings from

benefits rather than depart-mental cuts makes the fiscalcontraction more sensitive toeconomic growth."

The government's hope isthat tight fiscal policy willallow the Bank of England tokeep interest rates lower forlonger -- something that willhelp private enterprise expandto fill the gap left by a shrink-ing state sector.

This was also the rationalebehind the government's insis-tence that spending cuts, ratherthan tax rises, bear the brunt ofthe fiscal retrenchment. Its aimfor an 80:20 split is ambitious,both relative to austerity pack-ages in other parts of Europeand relative to history. -Reuters

Seeking a “least painful” austerity formula for Britain

Page 11: The Financial Daily-Epaper-18-10-2010

11Monday, October 18, 2010

International & Continuation

CONTINUATION

BAGHDAD: Iraq's Shi'iteprime minister is touring capi-tals in the region, many of whichfear he could alienate Iraq'sSunnis and give Iran too muchinfluence, in search of supportfor his bid to form a new gov-ernment.

The lack of a new governmentseven months after an inconclu-sive election has sparked con-cerns of a spike in violence justas the sectarian slaughter trig-gered after the 2003 US-ledinvasion recedes and US forcesstart to withdraw.

Prime Minister Nuri al-Malikihas so far only won clear back-ing from a Shi'ite group withlinks to Iran.

He has reached out to thecross-sectarian, Sunni-backedIraqiya bloc that topped theMarch vote, but Iraqiya leadershave so far refused to join aMaliki-led government.

Iraq's Arab neighbours and theUnited States are worried aboutShi'ite Iran's growing regionalinfluence and want Maliki to

include Iraqiya bloc in a power-sharing deal to counter this.

Iraqiya's leader, former primeminister Iyad Allawi, saysexcluding his alliance could leadto sectarian bloodshed.

Saad al-Hadithi, a politics pro-fessor in Baghdad's University,said Maliki's goal was to easeconcerns among countries likeSyria, which have had reserva-tions about him remaining inpower.

"(The trip) is an attempt ... togain the support of these coun-tries and ease reservations anddisagreement with some of thecountries," he said.

Maliki flew to Syria last weekseeking to improve sour rela-tions with Damascus, was inJordan on Sunday and was duein Tehran on Monday.

Later this month he is expect-ed to visit Turkey, a major trad-ing partner and investor whichhas emerged as a key mediatorsince Iraq's election and broadersupporter of Sunni interests inthe region.-Reuters

Iraq PM seeksregional support

for new term

QUITO: Two of four mentrapped in an Ecuadorean minecave-in were found dead onSaturday in the latest accidentto hit the industry in LatinAmerica.

Contrasting with the jubila-tion at this week's rescue of 33miners in Chile, the twoEcuadorean miners' bodieswere brought out to disconso-late relatives and officials at thesmall gold mine in Portovelonear the Peruvian border.

The miners were trappedsome 500 feet (150 metres)

underground when a tunnel col-lapsed early on Friday.Officials blamed the accidenton water leaks.

"We have found two bodies.The rescue operation continuesand we think the other two havea good chance of being alive,"government mining officialJorge Espinosa told Reuters."They were working in the partabove the collapse."

About 100 rescuers were atthe scene, trying to removerocks and insert a small probewith a camera inside to deter-

mine the two men's fate.In Chile the 33 miners sur-

vived for two weeks on limitedrations until rescuers made con-tact. Their rescue, after morethan two months deep underremote desert, triggered eupho-ria across the continent.

It also put a spotlight on min-ing safety in Latin Americawhere there are still many acci-dents, though standards haveimproved dramatically inrecent decades compared to thehorrors of past centuries. -Reuters

Two of fourtrapped Ecuadoreanminers found dead

Riyadh: Syria's ties to Iran andthe political void in Iraq areexpected to figure in talks onSunday when Saudi Arabia'sKing Abdullah meets SyrianPresident Bashar al-Assad,analysts and diplomats said.

The two leaders also areexpected to discuss tensions inLebanon over a U.N.-backedtribunal.

Announced in Saudi officialmedia, Assad's second trip tothe world's top oil exporter thisyear is the latest sign of a thawin bilateral relations.

The meeting comes daysafter a state visit to Lebanonlast week by PresidentMahmoud Ahmadinejad ofIran, whose nuclear energyprogramme Riyadh fears couldlead to Iran becoming anuclear-weapons state.

Riyadh has been trying toconvince Syria to loosen itsalliance with Iran and adopt amore Arab-focused foreignpolicy with the kingdom, hint-ing at stronger economic coop-eration.

The 2005 killing of Lebanesestatesman Rafik al-Hariridrove a wedge between SaudiArabia and Syria but bothcountries have been trying tocalm tensions over the tribunalwhich may indict members ofHezbollah, Iran's main ally inLebanon.

"I think the main theme willbe Lebanon," Saudi political

analyst Khaled al-Dakhil said.Saudi newspapers gave wide

coverage to Ahmadinejad'svisit to Lebanon last week.

Saudi-owned daily Asharqal-Awsat said: "Iran had decid-ed to operate in Lebanon open-ly rather than from behind asmoke screen."

Assad and Abdullah visitedLebanon together in July toavert a crisis betweenHezbollah, also backed bySyria, and factions aligned toPrime Minister Saad al-Hariri,who is the son of the slainSunni Muslim leader and isbacked by Riyadh.

Hezbollah, which is part ofthe national unity government,has denounced the U.N.-backed court as a tool of USand Israeli policy and called onHariri to repudiate the tribunal.

While Saudi Arabia andSyria try to calm tensions inLebanon they so far remain atodds over the tribunal. Riyadhhas long supported the Hague-based court.

Syria, initially implicated byU.N. investigators of thebombing that killed Hariri,always has viewed the tribunalas politically motivated. Syrianofficials say any indictments ofHezbollah would be consid-ered as targeting Syria too.

The Saudis might ask Assadto restrain Hezbollah, Dubaipolitical analyst TheodoreKarasik said.

"Keeping a lid on Lebanon'spolitical factions is especiallycritical in the current securityenvironment," he said.

Hezbollah leader SayyedHassan Nasrallah said in Julythat Hariri had told him the tri-bunal would indict "rogue"members of the Shi'ite guerril-la group for his father's killing.

Saudi Arabia, a US allyalarmed by Iran's growingregional influence since the2003 Iraq war, has tried for twoyears to persuade Damascus toloosen its alliance with Iran.

But little has emerged on theground in terms of economiccooperation since KingAbdullah visited Syria in alandmark visit last year. SomeSaudi firms have put out feel-ers to Syria.

In April, a private Saudiwaste-water company wasgranted contracts worth around$3 million.

"I don't think that economicrelations will take off muchany time soon," a Westerndiplomat in Riyadh said.

Dakhil said Assad andAbdullah also could discussthe political vacuum in Iraqafter an inconclusive vote inMarch, fuelling concerns thatinsurgents might exploit thevoid.

"In Iraq the differencesbetween Saudis and Syrians aremuch less than in Lebanon,"Dakhil said.-Reuters

Syrian, Saudileaders to discuss

Iran ties, Iraq

Israeli airstrike kills 2militants inGaza Strip

GAZA: An Israeli air strikeSunday killed two Palestinianmilitants in the northernGAZA Strip who hadattempted to launch rocketsat Israel, the Israeli militaryand Palestinian medics said.

"Men were targeted in anair strike after they werespotted preparing to fire arocket or a mortar shell atIsrael and we identified ahit," an Israeli militaryspokeswoman said.

Israel often carries outstrikes against militant tar-gets in the GAZA Strip,which is controlled by theIslamist group Hamas. Thestrikes generally target tun-nels that militants use tosmuggle in weapons fromneighbouring Egypt.

It was the first killing in anIsraeli attack on militants inthe GAZA Strip since Sept27. The Israeli military saysmilitants have fired morethan 165 rockets so far thisyear.-Reuters

Thai "redshirts" rallyto demandleaders be

freedAYUTTHAYA: Thousands ofanti-government "red shirts"demonstrated in the old Thai cap-ital of AYUTTHAYA on Sundayto demand the release of theirleaders and scores of comradesdetained since bloody protests inApril and May.

By 5 p.m. (11 a.m. BST), wit-nesses estimated a crowd of some10,000 had assembled in thetown, 76 km (47 miles) north ofBangkok, for the group's third bigrally since September 19 and thelatest sign of its revival since amilitary crackdown in May.

Hundreds of police weredeployed near a football stadiumwhere the main rally was takingplace.

“We don't have leaders today.We are here on our own, theCRES can’t arrest us,” one speak-er said from a makeshift stage,referring to the Centre for theResolution of the EmergencySituation set up to coordinate theauthorities' handling of theBangkok protests.

The capital, unlike AYUT-THAYA, is still under a state ofemergency after 10 weeks ofparalysing protests in April andMay that ended with 91 peoplekilled and nearly 2,000 injured.Political gatherings are bannedunder the emergency.

Some 2,400 troops and policewere reported to have beendeployed in Bangkok earlier asthe red shirts had threatened tohold a "mobile rally," with sup-porters riding around town beforeheading up to AYUTTHAYA. Noincidents were reported.

The red shirts are demandingthat those behind the deaths inApril and May be brought to jus-tice. The authorities accuse thered shirt leaders of terrorism forthe deaths and rioting.

Red shirt supporters in thecrowd in AYUTTHAYA calledfor an amnesty for their leaders,detained without trial since May.

Analysts say the revival of thered shirts and the vacuum in itsleadership raise the risk of deep-ening a violent, five-year politi-cal crisis.

The government is concernedthat radicals could emerge fromwithin the movement to createunrest, pointing to a recent deadlyblast in a suburban Bangkokapartment rented by an activist,which was packed with bomb-making material..-Reuters

n Syrian President Assad to visit Riyadhn Talks are likely to focus on Lebanon, Iran and Iraq

number of resolutions on various issues like poverty, terrorism,price hike, unemployment, national sovereignty and publishing ofhatred literature, asking the government to resolve these problemsin an appropriate manner.

Among others, Pir Mazhar Saeed Kazmi, Haji Haneef Tayyab,Pir Afzal Qadri, Sarwat Ejaz Qadri, Qari Munir Ahmed Jeelani,Abdul Hameed Saifi, Syed Riaz Hussain Shah, Rana MuhammadIqbal and Abdul Rehman attended the convention and expressedtheir views to ensure peace and stability in the country. -NNI

Continued from page 12No #1

security sector. "Combination of a lack of political will, fear ofthe khakis, incompetence and resistance by the security sectorresulted in limited oversight. However, it is not specific toPakistan," he added. The other point is for the incumbent govern-ment not to use the security sector - army and intelligence agencies- for their political purposes whether it is the issue of wire-tappingof political opponents or the failure to provide effective and effi-cient civilian governance in areas already secured and held by thearmy after a military operation (Swat-Malakand and FATA).

Such instances invariably lead to governmental reliance on non-political factors, which, in turn, weakens democratic space, headded. Mushahid, who is also the chairman of Pak-ChinaInstitute, however said that Pakistan currently presents a uniquephase of its political transition, when the 'old establishment' is nomore, with the emergence of new power players, who influencethe national discourse and decision-making.

"Today, no single institution or individual is fully in-charge ofPakistan, or can call the shots on their own. Rather, the military-security establishment, the political establishment, an autonomousjudiciary, an independent and free media," he said.

"On at least three occasions in Pakistan's history, the establish-ment has split due to upheavals on the ground. In 1971, when thesecond military regime was removed by the military brass itself topave the way for restoration of democracy under an elected, civil-ian government following the secession of Bangladesh. In 1993,when political conflict between the President and the PrimeMinister threatened to split the system at its seams, theEstablishment discarded its 'godfather,' Ghulam Ishaq Khan, toengineer a political change via a 'soft coup'.

And in 2007-2008, the higher judiciary broke with theEstablishment for the first time in Pakistan's history," he said.

"Military rulers represented the interests and objectives of theEstablishment when the Army ran the country.

Mushahid however said the Army's preponderant role inPakistan's polity is due to several other factors. "First, there is thefailure of politicians to fashion 'rules of the game' among them-selves, and their continuing inability to present a 'united front'before the military. At the first available opportunity, the militaryis 'invited' to intervene, or a military coup is welcomed as an easyoption to remove rivals," he asserted. -Online

Continued from page 12No #2

Khan has informed that fake degree cases of 58 members, asprovided by HEC (Higher Education Commission) would be

Continued from page 12No #3

can invest with confidence." The long-awaited spendingreview will give details of cuts worth 83 billion pounds over thenext four years in an austerity plan designed to secure econom-ic recovery. Osborne aims to reduce a deficit of 11 per cent ofnational output to just over 2 per cent in five years. ConservativePrime Minister David Cameron, who leads a coalition govern-ment with the Liberal Democrats, says Britain must cut thedeficit quickly to reassure markets.

Unions have threatened coordinated strikes to protest againstexpected job losses. France, Spain and Greece have already seenmass rallies and industrial action against cost-cutting measuressuch as pension reforms. Osborne played down suggestions thatthe scale of the cuts risked opening a rift between his centre-right Conservatives and the centrist Liberals, who opposed bigcuts while in opposition. The cuts will touch most areas of pub-lic life, with nearly all government departments expected toreduce spending by about a quarter over four years.

Welfare claimants will face greater scrutiny in an attempt toweed out fraud, and child benefit payments will be axed from2013 for families where either parent earns over 44,000 poundsa year. Osborne said people caught trying to defraud the benefitssystem three times would lose their right to state money. Thosemaking mistakes on official forms would be fined 50 pounds.

All banks will have to sign up to a code of conduct on taxavoidance by November, he added. So far, only four out of 15major UK banks have agreed to do so. Labour's financespokesman Alan Johnson described the cuts as "economicmasochism" and said they would damage growth. -Reuters

Continued from page 12No #4

resolved sooner until 25th Oct. -Online

However, bulls managed to bounce back on Wednesday withheavy buying on higher international oil prices which reachednear $83 a barrel and on hopes of healthy result announcementswhile the adjournment of NRO hearings too supported the mar-ket therefore index closed the day with a gain of 97 points.

Thereafter, some limited positive activities were observedduring the last two days mainly supported by the index heavy-weight OGDC while buying also was seen on hopes of FoDPpledges during their meeting in Brussels. However, index did-n't manage to end with major gains due to profit booking bythe investors.

Therefore it closed 19 points up on Thursday at its highestlevels of about two and a half months while it gained 22 pointson Friday.Investor participation witnessed a minor decline as450 million shares traded during the week which is 9 millionless than a turnover of 459 million shares a week earlier.

Out of total 432 active issues 239 advanced and 174 declinedwhile 19 issues remained unchanged.

Market experts say that the developments on the politicalfront and the proceedings on NRO hearings would drive themarket sentiments in the coming days. Some of them are also ofthe view that technically market should see correction at theresistance level of 10,500 points.

Continued from page 5No #5

Iraq's PM Maliki speaks during a meeting with members of the Iraqi National Alliance andthe State of Law coalition in Baghdad. -Reuters

responsible for it. "We do not want a Pakistan where there is no reverence for the judiciary and theSupreme Court", he added. He also said that worst rigging was held in the elections of 2008 against PML-N. Mian Nawaz Sharif also said that the country is in deep crisis at the moment. He opined that positiveminded people have rendered great sacrifices for the country. PML-N Leader also blamed the governmentfor always being on the begging side, disgracing the state's image. "China got independent later from oursbut it is standing in the leading countries of the world and the countries who implemented our five-yeardevelopment plans were touching the heights," he said. He said that justice should be done in AkbarBugti's assassination case in order to ensure peace in Balochistan. -NNI

Continued from page 1No #6

and Senator Ishaq Dar were also present on the occasion. Serious political and economic problems beingfaced by the country and the role of political parties in improving the present situation was discussed in themeeting. According to the sources, the meeting also reviewed the Pakistan Muslim League unificationprospects with the PML-Q leaders. The participants of the meeting unanimously agreed that the federal gov-ernment should bring about a positive change in its attitude and implement the orders of judiciary. -Online

Continued from page 1No #7

battle in Pakistan was the battle between the forces of moderation and democracy on the one side andthat of extremism and religious bigotry on the other. Shaheed Mohtarma Benazir Bhutto was the symbolof resistance against militancy and attack on her on this day was indeed an attack on all forces of moder-ation, he said. "We must win this battle if we are to survive as a modern, moderate and democratic nationwhere ballot and not bullet will determine the direction we take", he said in his message. "Those who laiddown their lives on this day three years ago are the heroes and heroines of the battle against extremism.They have lit the path with their blood for future generations to traverse in the fight against obscurantism,militancy and extremism. They did not die in vain; they gave up their lives so we lived in freedom, dig-nity and hope." "The martyrs of Karsaz are the strength of the nation and we salute their courage and loy-alty, he said adding, "Even in a distant age and clime they will serve as inspirational models and motivatepeople to fight the bigot and the militant to the finish".

Nearly two hundred Jan-Nisaran-e-Benazir, fans of democracy and ideological foes of militancy weremartyred in Karachi on this day when the terrorists struck the convoy welcoming the icon of moderationShaheed Mohtarma Benazir Bhutto on her return journey to Pakistan from almost a decade in exile. "Onthis day let us all commit to continue the fight against extremism. Let us also on this day vow to upholdthe principle of parliamentary democracy in which the people through free and fair vote at regular inter-vals decide the fate of the country, and not a handful of individuals", the PPP Co-Chairman said.-Agencies

Continued from page 1No #8

per cent as total assets reached Rs6.3 trillion in 9MCY10 from Rs6.07 trillion at CY09.

Continued from page 1No #9

On the other hand, biggest weekly selling was witnessed from banks which sold $18.67 million ofshares in the local bourse against the buying of $11.74 million, thus turning the net selling worth of$6.93 million.

Continued from page 1No #10

not heed to MQM reservations. MQM has time and again picks-apart government for not rivetingthe violence against MQM, failing to cap target-killing spree in the city, and due to Sindh govern-ment's dilatory tactics MQM had started to revisit its policy to stay with coalition.

Meanwhile MQM's Rabita Committee meeting was being held simultaneously in London Karachiin which deep concerns were expressed over the recent killings of its activits and also pondered overthe future strategy including quitting the coalition. Earlier, Governor Sindh Dr Ebad telephoned PMGilani and conveyed his party's reservations. Meanwhile, MQM leader Hyder Abbas Rizvi whiletalking to some news channel said that his party is considering various option, however refuses toconfirm or refute the news regarding stepping out of coalition.

Continued from page 1No #11

Page 12: The Financial Daily-Epaper-18-10-2010

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KARACHI: A woman giving thumb impression before casting her vote during the by-elections in

Orangi Town PS-94, in a government school. -Online

ISLAMABAD: A total of 19 topbureaucrats of different servicesgroups have been made OSD by thefederal government due to their illperformance as well as after courtverdicts, sources in EstablishmentDivision revealed Sunday.

The Establishment Divisionsources told NNI that these OSDsare still waiting for their transferorders to new place of postings.

As per details, Hassan WaseemAfzal and his wife were first vic-tims of the present government asthey were allegedly involved in the

then speaker national assembly andpresent Prime Minister Gilani onthe dissolution of previous govern-ment of Pakistan Peoples Party.

Other BS-21 bureaucrats includ-ing Ziauddin Butt was made OSDon July 07 2010, Shafqat HussainNaghmi on March 03, 2010,Chaudhry Abdul Majeed on April04, 2010, Fakhruddin on December03, 2009, Syed Javed Ali ShahBukhari on July 09,2010, ShaukatAli Khan on July 01, 2010, KamranLashari on September 17,2009 havebeen made OSD.

The grade 20 bureaucrats, includ-ing, Miss Rukhsana Rehman onJuly 03, 2010, Liaquat Ali Khan onJune 05, 2005, Rana NaseemAhmed on January 20, 2007,Captain (Retd) Muhammad Aftabon July 05, 2008, Captain (Retd)Fazail Asghar on December 12,2009, Syed Tahir Shehbaz onAugust 02,2010, Squadron leader(Retd) Muhammad Irfan Elahi onApril 18,2010 , Rana Altaf Majeedon September 23, 2009 and SaudAziz on April 20,2010 have beenmade OSD.-NNI

19 top-officersdemoted as OSDs

Decision taken on ill-performance, court verdicts

ISLAMABAD: A 17-memberbench of the Supreme Courtchaired by CJP would be reviewingthe issue of reports by private TVchannels, regarding expressingdesire of withdrawal of (earlier)executive orders of reinstatementof judiciary.

CJP had issued directives to gov-ernment for clarification of thesereports, while Pemra head anddirectors of three private TV chan-nels would also be summoned fortheir explanations regarding thevolatile controversial issue.

A detailed explanation is expect-ed to be submitted by PM or any

federal minister, however strongpossibilities are there that ministryof law and parliamentary affairswould itself be doing the job.

A local TV channel has reportedthat the 17-member bench wouldonly be reviewing this particularcase, while other benches wouldcarry on with their usual routinecases.

Strict security measures on theoccasion have been ensured, whichinclude special passes to enter theoffices of petitioners, lawyers andthe main court room, and installa-tion of CCTVs for close monitoringof the premises. -Online

Pemra, 3 mediaheads to front SC

SC to review executive orders withdrawal news

LONDON: Britain will clampdown on welfare fraud, slash gov-ernment spending and press banksto pay more tax in an attempt to cutits record peacetime budget deficit,Chancellor George Osborne said onSunday.

Speaking before a spendingreview that will deliver the biggestpublic cuts in decades, Osborne

dismissed opposition criticism thatthe plan was "economicmasochism."

"We have to see this through," hetold the BBC. "We were on thebrink of bankruptcy. If we are goingto have growth and jobs in thefuture, we have got to move thiscountry into a place where people

See # 4 Page 11

UK to clamp downon welfare, banks

Vow to hit tax evaders as big spending cuts loom

Mushahidspells outsteps for political stability

ISLAMABAD: PML-Q secretarygeneral Mushahid Hussain SayedSunday called upon the politicalforces to establish certain "rules of thegame" to resolve contentious issuesinside the Parliament through consul-tation and consensus so as there is norecourse to a 'referee' from the outside.

"Pakistan has little tradition of insti-tutional parliamentary oversight of thesecurity sector, rather the focus hasbeen on individual control or bureau-cratic oversight through powerful andcompetent civil servants," whileaddressing the visiting students, schol-ars and academia here at the PMLHouse in his lecture and Q&A sessionsabout his recent paper on civil, militaryrelations produced for a local thinktank, according to a press release.

"For instance, powerful financeministers like Mohammad Shoaib inthe days of Field Marshal Ayub Khanand Ghulam Ishaq Khan underGeneral Zia often over ruled the mil-itary on budgetary issues.

Replying to a question about thelack of parliamentary oversight,Mushahid said there were reasonswhy Parliaments in general and par-liamentary committee on defencehave not been able to oversee the

See # 2 Page 11

ECP to hearcases of MPsfake degrees

ISLAMABAD: ElectionCommission of Pakistan (ECP)would be hearing the cases of fakedegrees of 15 Parliamentarianstoday, (Monday).

Those summoned include threeMNAs, 11 MPAs of Sindh and oneof Sindh. MNAs include, HayatullahTareen, Ghulam Dastagir Rajar, andMazhar Hayat.

Punjab Assembly members sum-moned, include, Samina KhawarHayat, Ejaz Ahmad, Afshan Farooqi,Mir Badshah Qaisarani, Safdar Gul,Naseem Nasir, Khawaja ShumailaRana, Seema Kamran, Farah Deeba,Majida Zaidi, Saima Aziz andBaloch MPA Muhammad Khan.

The spokesman of ECP Afzal See # 3 Page 11

LAHORE: Federal law ministerBabar Awan Sunday underscoredthe need to strengthen the democrat-ic norms in the country, adding thatpolitics within an institution will notbe allowed.

During a press conference inLahore, federal law minister saidparliament is the sole authority toamend the Constitution.

"Undemocratic actions havealways made Pakistan to regress butnow we will make the countrystrong through continuity of thedemocratic process", federal lawminister pointed up.

He said that he is very pleased thatthe courts remained open in night

too. “We will not let emergence of astate within a state", the ministerstressed.

He called upon all the politicalparties to get ready for general elec-tion 2013.

He said that a joint session of theParliament would be held onNovember 1. Federal law ministerBabar Awan further added nation isthe real power for Pakistan and peo-ple through voting will decide thefate of the country.

There is a need to strengthendemocracy while urged the need toenhance and support democraticculture in the country, Babar Awanconcluded. -Agencies

Legislation, Parliament’sprerogative, says Awan

Govt won’t let emergence of state within state: minister

ISLAMABAD: Sunni IttehadCouncil Sunday announced to holdlong march on November 27 fromIslamabad to Lahore to highlight theimportance of Nizam-e-Mustafa(PUBH) in ensuring peace and sta-bility in the country.

Chairman of the CouncilSahibzada Fazl Karim made thisannouncement while addressing theUlema and Mashaikh Conventionheld here under the aegis of SunniIttehad Council.

A large number of Ulema and reli-gious scholars belonging to Sunnischool of thought and their follow-ers attended the conference.

The march would start from theshrine of Hazrat Bari Imam (RA)and culminate at the shrine ofHazrat Data Ali Hajveri (RA) inLahore, he said.

Fazl Karim, who is also MNA,announced that he and like-mindedpeople would contest the next gen-eral elections from the platform of

the Sunni Ittehad Council, urgingUlema and Mashaikh to get unitedto play an active role in national pol-itics.

He said Pakistan is facing thebiggest challenge of terrorism andan effective strategy is required touproot this menace from the society.

He appreciated the efforts of secu-rity forces in flushing out the mili-tants from the tribal areas.

The Ulema convention passed a See # 1 Page 11

Sunni Ittehad Councilannounces long peace-walk

TEHRAN: World powers have nooption but to talk with Iran over itsnuclear programme, IranianPresident Mahmoud Ahmadinejadsaid on Sunday in defiant commentsahead of next month's negotiations.

"We said from the start that thebest way is to talk to Iran. You don'thave any other option. All otherways are blocked," saidAhmadinejad, commenting for thefirst time since the dates for thenegotiations between the six worldpowers and Iran were fixed.

The six world powers -- the UnitedStates, Britain, China, France,Russia and Germany -- are to holdtalks with Iran from November 15 to18 to address Western concerns overTehran's nuclear programme.

The powers led by Washingtonsuspect Iran is masking a weaponsdrive under the guise of what it saysis a purely civilian atomic pro-gramme.

The talks have been deadlocked

since October 2009 when the twogroups met in Geneva.

Ahmadinejad stressed that thetalks must be based on "mutual jus-tice and respect" and that the worldpowers must respect Tehran's pre-conditions.

He has repeatedly insisted that theworld powers answer whether theyare committed to the rules of the UNatomic watchdog and whether theywant to cooperate or instead "pull atrick" on Iran.

He also demands that internationalpowers abide by "logic" and expresstheir views on Israel's atomicweapons. The Jewish state is widelyrecognised as the sole if undeclarednuclear weapons power in theMiddle East.

Speaking Sunday in the northwest-ern city of Ardebil in an addressbroadcast live on state television,Ahmadinejad indicated that theresponse of world powers to theseconditions could influence the direc-

tion of the November talks."We would like to know your logi-

cal and lawful opinion" on theseconditions, said Ahmadinejad to acheering and whistling crowd.

"You may keep silent, but silenceto us means that you are... backingthe Zionist regime's atom bombs andthat you are not seeking friendshipthrough talks.

"Feel free to make a choice. Buttalks on this second path (keepingsilent on Iran's conditions) will notyield anything, but what you havegained so far. You won't get anythingmore," Ahmadinejad added.

Iran has repeatedly argued thatarch-foe Israel must join the nuclearNon-Proliferation Treaty (NPT) towhich Tehran is a signatory.

Israel, like Washington, has notruled out a military strike againstIran to stop its nuclear programme.

Ahmadinejad stressed that Iranwould not give up any of its rights. -Agencies

Talks only option, Iran retells world


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