International

Muneeb seeks security for Sunni Ittehad rally See on Page 12

Kayani starts second tenure See on Page 12

Dubai may sell shares in SOEs See on Page 12

Crude Oil (brent)$/bbl 85.58

Crude Oil (WTI)$/bbl 83.76

Cotton $/lb 111.76

Gold $/ozs 1,364.30

Silver $/ozs 26.77

Malaysian Palm $ 1,045

GOLD (NCEL) PKR 37,706

KHI Cotton 40Kg PKR 9,109

Yearly(Jul, 2010 up to 26-Nov-2010)

Monthly(Nov, 2010 up to 26-Nov-2010)

Daily (26-Nov-2010)

Total Portfolio Invest (19 Nov-2010)

161.20

56.48

-3.24

3796

-0.41

0.60

-0.48

-0.02

-0.20

-0.10

0.60

SCRA(U.S $ in million)

Portfolio Investment

FIPI (26-Nov-2010)

Local Companies (26-Nov-2010)

Banks / DFI (26-Nov-2010)

Mutual Funds (26-Nov-2010)

NBFC (26-Nov-2010)

Local Investors (2-Nov-2010)

Other Organization (26-Nov-2010)

(U.S $ in million)

NCCPL

GDR update

Commodities

Forex Reserves (19-Nov-10)

Inflation CPI% (Jul 10-Nov 10)

Exports (Jul 10-Nov 10)

Imports (Jul 10-Nov 10)

Trade Balance (Jul 10-Nov 10)

Current A/C (Jul 10- Oct 10)

Remittances (Jul 10-Nov 10)

Foreign Invest (Jul 10-Oct 10)

Revenue (Jul 10-Oct 10)

Foreign Debt (Sep 10)

Domestic Debt (Aug 10)

Repatriated Profit (Jul- Oct 10)

LSM Growth (Aug 10)

GDP Growth FY10EPer Capita Income FY10Population

$16.85bn

14.17%

$7.17bn

$12.25bn

$(5.08)bn

$(533)mn

$3.50bn

$569mn

Rs 411bn

$58.41bn

Rs 4863bn

$203.80mn

-3.85%

4.10%

$1,051

171.15mn

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

20.90

2.00

1.70

10.57

PKR/Shares

111.36

179.03

42.83

36.41

36.22

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)

15-Nov-2010

15-Nov-2010

15-Nov-2010

29-Sep-2010

27-Nov-2010

27-Nov-2010

27-Nov-2010

27-Nov-2010

27-Nov-2010

27-Nov-2010

27-Nov-2010

27-Nov-2010

27-Nov-2010

27-Nov-2010

27-Nov-2010

12.86%

13.20%

13.30%

13.50%

12.93%

13.10%

13.36%

13.70%

13.79%

13.69%

13.75%

13.84%

14.23%

14.34%

14.51%

Money Market Update

Symbols Buy (Rs) Sell (Rs)

Australian $ 82.20 82.30

Canadian $ 83.40 83.50

Danish Krone 14.40 14.90

Euro 113.90 114.90

Hong Kong $ 10.90 11.00

Japanese Yen 1.003 1.029

Saudi Riyal 22.50 22.60

Singapore $ 65.55 65.65

Swedish Korona 12.55 12.65

Swiss Franc 86.85 86.95

U.A.E Dirham 22.95 23.40

UK Pound 133.90 134.90

US $ 85.40 85.60

Open Mkt Currency Rates

Symbols Buying Selling

TT Clean TT & OD

Australian $ 83.25 83.45

Canadian $ 84.49 84.69

Danish Krone 15.27 15.31

Euro 113.86 114.13

Hong Kong $ 11.00 11.03

Japanese Yen 1.016 1.019

Saudi Riyal 22.77 22.82

Singapore $ 65.07 65.23

Swedish Korona 12.26 12.29

Swiss Franc 85.47 85.67

U.A.E Dirham 23.25 23.30

UK Pound 134.54 134.85

US $ 85.66 85.85

Inter-Bank Currency Rates

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See on Page 12

COLOMBO: An array of sep-arate bilateral meetings inColombo by President Zardariwith Sri Lankan Prime Ministerand Foreign Minister at the del-egation level and a one-on-onewith the President of the hostcountry followed by a banquetbrought the two countries clos-er together than any time beforein the past decades as theirleaderships witnessed signingof four MoUs pledging to abol-ish visa, facilitate custom-clearance, cooperate in agricul-ture and promote Arts andCreative Studies.

The two leaders also agreedto work towards inking agree-ments enhancing trade anddefence ties on the one handand connectivity and culturalexchanges on the other.

Briefing journalists about theSunday meetings in Colombo,spokesperson to the PresidentFarhatullah Babar said the highwater mark of the meetings wasa decision to reinvigorate theJoint Economic Commission

and task it to work out modali-ties for a new and unconven-tional phase of economic coop-eration marked by barter trade,currency exchange and bankinginterchanges.

The agreement came aboutafter the two sides agreed thatthe present level of 300 milliondollars of mutual trade was farbelow their true potential andkeeping in view the scope oftheir political and culturalcooperation.

Babar said that the Presidentoffered Pakistan's help in set-ting up sugar and cement plantsin Sri Lanka in return forimport of Sri Lankan produceand manufactures in Pakistanas barter trade or in local cur-rencies obviating the need formaking payments in dollarsthereby reducing pressure ontheir limited foreign exchangereserves.

Calling it as a "win-win situ-ation for both" the President ofPakistan suggested thatFinance Ministers of the two

countries should sit togetherimmediately to work out thedetails-a proposal to which theSri Lankan side agreed readily,he said.

The visa abolition agreementnow allows holders of diplo-matic and official passport totravel without visas- a stepdescribed by President Zardarias "critical for enhancing peo-ple to people contacts andimprove connectivity".

They also agreed to startdirect weekly air flightsbetween the two countries fromearly next year and graduallyimprove the frequency of airflights.

"The success of the new eco-nomic and trade cooperationparadigm requires that the twocountries laid special stress onimproving connectivity", thePresident said during the inter-actions.

President Zardari also offeredto open a branch of theNational Bank of Pakistan in

See # 1 Page 11

Pak, Lanka inkMoUs to boosttrade, end visal Revival of Joint Economic Commission discussed

l Pak offers setting up sugar, cement plantslNBP branch in Colombo to be opened

DUBLIN /BRUSSELS:European ministers are expect-ed to sign off on an 85 billioneuro ($115 billion) rescue forIreland on Sunday, making itthe second euro zone countryto receive a bailout in Europe'scrippling debt crisis.

Finance ministers from the16-nation eurozone will meetin Brussels to sign off onIreland's emergency loan pack-age, which they hope will helpDublin cover bank debts andbridge a massive budgetdeficit, while also preventingthe debt contagion spreading toPortugal and Spain.

EU sources said a team ofspecialists from the EuropeanCommission, the EuropeanCentral Bank and theInternational Monetary Fundhad finalised a deal with Irishauthorities in Dublin after 10days of negotiations.

"The negotiations are com-plete and a package has beenagreed on the ground," asource involved with the dis-cussions said.

"EU finance ministers arenow ready to sign off on it, butI think they will also want todiscuss some of the finerdetails and add some political

impetus to what has beenagreed in Ireland," he said.

Sources say the package ofloans will total around 85 bil-lion euros. A major stickingpoint is the interest rate thatwill be charged and the term ofthe loans, which are expectedto be between three and sixyears.

After eurozone ministersmeet to discuss the package, all27 EU finance ministers willgather in Brussels, with theexpectation that the details ofthe bailout will be announcedbefore financial markets openin Asia on Monday.

The president of theEuropean Commission, JoseManuel Barroso, told Europe 1radio he hoped EU financeministers would unanimouslyagree to support Ireland, whichhas been under intense pres-sure to accept a bailout despiterepeatedly saying in recentweeks that it did not need one.

European leaders are hopingthat the package for Ireland,drawn from a 750 billion eurorescue fund agreed by the EUin May this year, will convincefinancial markets that the crisiscan be contained and sparePortugal and Spain-- the next

two countries identified aspotentially at risk -- from pres-sure.

Debt worries have driven thecrisis for the past year almostwithout respite. It has severelydented confidence in the 12-year-old euro currency andproduced what amounts to ashowdown between Europeanpoliticians and financial mar-kets. The parties, Fine Gael andLabour, are expected to routunpopular Prime MinisterBrian Cowen's Fianna Failparty in an election that is like-ly to take place within months.They have said they would be

bound by a rescue deal but maytry to renegotiate details.

Both parties want bondinvestors who lent money toIrish banks to take on a biggershare of their country's bailoutburden, rather than foisting itall on Irish taxpayers.

Jitters sent the shares ofEuropean banks which holdthe debt of Irish banks tum-bling on Friday. The euro alsofell to a two-month low againstthe dollar and the borrowingcosts of peripheral euro zonecountries like Ireland, Portugaland Spain stood near recordhighs. -Reuters

EU nods $115bn in Irish bailout deal

Staff Reporter / Agencies

KARACHI: At least eleven people were killedwhen a Russian cargo plane crashed in a fireballseconds after taking-off from Karachi lateSaturday night.

The death toll, reached at eleven, expected torise, with an unknown number of labourersfeared killed when the Ilyushin IL-76, bound forthe Sudanese capital Khartoum, slammed intobuildings in the city.

"All eight people on board have died, we fearthat some labourers on the ground have also beenkilled," CAA spokesman said. "We do not knowthe exact number of those killed on ground," headded. Bodies of three labourers working on theconstruction site have also been recovered fromthe debris taking the toll to eleven, rescue author-ities said.

The plane slammed into buildings under con-struction in the Dalmia neighborhood.

The samples of DNA have been taken from thebodies recovered from the debris heaped up ofplane crash coupled with collapsed building.

Sindh Health Minister Dr Sagheer Ahmeddeclared emergency in all hospitals of the city assoon as the first report regarding the plane crashwas received.

According to medico-legal experts, the bodiesare hundred percent burnt down and hencebeyond identification. The CAA spokesman saidthat the jet took off from Karachi at 1:45 am(20:45 GMT Saturday) and crashed just one anda half minutes later.

Witnesses spoke of their horror at seeing a fire-ball racing through the night sky.

"I saw a fireball plummeting to ground," a milkseller said. He had been going home on hismotorbike after closing his shop.

Residents in nearby buildings spent the nightwith relatives, he added. Furthermore, aspokesman of Pakistan Navy, CommanderSalman Ali said there was no loss of life due tocrash of Russian cargo plane in Dalmia area insmall hours of Sunday.

He said that there were some under-construc-tion houses but no one was residing there. The

See # 2 Page 11

Dig starts into cargojet crash in Karachi

Death toll in Russian plane crash reaches 11

DNA samples taken; black box not found yet

Ahmed Siddique

KARACHI: Repatriation ofprofit by the foreign companiesrose 1.9 per cent in first fourmonths of the fiscal year 2011,according to the State Bank ofPakistan data on sector-wiserepatriation of profit.

From July to October 2010,the repatriation of profit by for-eign companies in Pakistanrises to $203.8 million asagainst $199.9 million wit-nessed in the correspondingperiod last year.

During the period underreview, profit repatriation onaccount of foreign direct

investment (FDI) stood at$160.1 million -- representing78.5 per cent of total reparti-tion -- while on foreign portfo-lio investment (FPI) it stood at$43.7 million (21.5 per cent oftotal repartition).

Telecommunications sectorremained the major contributorto this outflow in terms of dol-lar, as their companies sent$49.8 million against $42.7million sent abroad by the sec-tor in 4MFY10.

Similarly, repatriation ofprofit by the financial businessrose to $33 million comparedto $7.3 million during the same

See # 4 Pgae 11

Profit repatriationrises 2pc in 4mths

Special Correspondent

ISLAMABAD: Finance min-istry in sheer defiance of clause7 of Security and ExchangeCommission of Pakistan(SECP) Act-2007 has sent rec-ommendations to the primeminister for extension in theservice of Tariq Asif Hussainas Commissioner.

As per SECP Act anyonewho crosses the age limit of62-year cannot be appointed ascommissioner. On the otherhand Tariq Asif Hussain who

has completed his servicetenure as commissioner legaldivision in SECP has been rec-ommended by finance ministryto be reappointed as commis-sioner.

Tariq Asif Hussain wasappointed as commissioner onNovember, 26, 2007 and hehad completed his servicetenure on November, 26, 2010.

On the other side chairmanSECP is going to complete hisservice period on November,29, 2010.

See # 3 Page 11

Finance ministrydefies SECP Act

Extension in Commissioner's service

Ghulam Raja Rajani

KARACHI: Even thoughglobal markets remaineddepressed owing to eurozonedebt crisis, border brushesbetween two Koreas, whichdragged the global markets

down, but offshore investors inPakistan -- putting aside theinternational concerns -- onceagain emerged as the net-buyerin equity market with $12.44million worth of buying in thelast week as per the National

See # 5 Page 11

Offshorers pump$12.4mn into KSE

Mutual Funds eject $6.1mn last wk

PM refuses

to extendCDA officerjob tenure

ISLAMABAD: PrimeMinister Syed Yousuf RazaGilani has rejected the summa-ry, regarding extension of con-tract services for another yearof CDA member financeSaeed-ur-Rehman.

The member finance CDA,whose post has been referred toanother official on temporarybasis has been allegedlyinvolved in billions worth ofscam in NLC (NationalLogistics Cell).

The 3-year old contract ofSaeed-ur Rehman had expiredon 1st Nov 2010, but was con-tinuing his job on the directivesof PM.

However when contacted,the member finance said thathis contract had been extendedby PM, and he was still on hissaid post. -NNI

4 killedin NWA

drone attackPESHAWAR: At least fourpeople were killed in a USdrone attack, launched Sundayafternoon in North WaziristanAgency area (NWA).

According to a private televi-sion channel, a US drone firedtwo missiles at a vehicle sus-pected of carrying militants inthe Hassan Kheil area of theagency, a stronghold of Talibanand al Qaeda militants, alongthe Afghan border.

As a result, four persons werekilled and several others sus-tained serious injuries.

Starting from this month, atotal of 17 strikes have beenlaunched by the US dronesagainst the militants in NorthWaziristan Agency, killing atleast 84 people, most of whomwere believed to be militants.-NNI

Karachi, Monday, November 29, 2010, Zil Hajj 22, Price Rs12 Pages 12

Delhi debatesMusharraf’s visit

Young Presidents Organisation sends invitation

COLOMBO: President Asif Zardari and his Sri Lankan counterpart PresidentMahinda Rajapaksa witnessing the signing of different MoUs here on Sunday. -APP

Zardari meets Lankan President, PM & FM

2 Monday, November 29, 2010

KARACHI: Nationalists of Sindhprovince have strongly opposed theprocess of handing over of non-Sindhi government employees to theSindh government from the federalgovernment in the wake of devolu-tion of ministries and divisions afterthe Passage of 18th Amendment.

The nationalists told PPI that thefederal government had always vio-lated the quota system and appointednon-Sindhi employees on the quotaof Sindh based people so that in thename of devolution, a large numberof non-Sindhi federal employeescould be inducted in the provincialgovernment, which is injustice withthe Sindhi people.

They warned if the PakistanPeoples Party (PPP) led Sindh gov-ernment accepts non-Sindhi employ-ees of federal ministries, we willlaunch a strong protest in the shapeof hunger and shutter-down strikesbesides blocking roads.

After the passage of 18thAmendment and abolition ofConcurrent List, the 47 subjects willbe transferred to provinces from thefederal government. In the firstphase, five ministries and divisionsincluding Local Government andRural Development, Zakat & Usher,Youth Affairs, Special Initiatives andPopulation Welfare Departmentswill be transferred to provinces ofthe country by the first week ofDecember month.

The Sindh government has com-pleted its home work in this regardwith the help of Devolution Cabinetan Provincial ImplementationCommittees separately headed bythe Syed Murad Ali Shah ProvincialFinance Minister and Syed GhulamAli Shah Pasha Chief SecretarySindh.

Dr Qadir Magsi Chairman SindhTaraqi Pasand Party (STPP) said that

the PPP government is cheating theSindhi nation in the name of devolu-tion and provincial autonomy.

He said the federal governmentwould not let any political party toaward the full autonomy to theprovinces. He questioned when theprovinces are awarded with full-fledged powers then how will feder-ation and the elder brother province(Punjab) will survive?

He said the PPP government hasalways sold the rights of Sindh inorder to make their governmentalchairs strong and it is also doingsame in this tenure too.

Dr Magsi said the PPP celebratedthe "Jashan" when it announcedNational Finance Commission(NFC) award but now it is workinghard to impose the ReformedGeneral Sales Tax (RGST) Bill inorder to get the taxes with high ratesfrom the people by the federal gov-ernment.

He said with the shifting of federalministries and the divisions, definite-ly all employees would be inductedin the provincial government, whoare non-Sindhi in the ratio of 98 per-cent out of 100 percent.

He rejected the possible inductionof non-Sindhi employees andwarned that if Sindh governmentdoes not take stand on this veryimportant issue, we will protestagainst it.

Bashir Khan Qureshi ChairmanJeay Sindh Qaumi Mahaz (JSQM)strongly rejected the devolutionprocess & provincial autonomy andsaid that we are the followers of GMSyed who fought for the freedom ofSindh during his whole life.

He said PPP government has donenothing for the survival of Sindhipeople who had voted them to powerin the name of Shaheed BenazirBhutto. He said Punjab has rehabili-

tated the flood survivors but theflood affectees of Sindh are stillprotesting against Sindh governmentfor non-provision of Watan Cards.

Qureshi said PPP is heading thefederal and Sindh governments so ifit wants to do something for theSindh, it can do but their leaders arebusy in collecting the money.

He warned if the Sindh govern-ment gets the non-Sindhi employeesfrom the federal government, JSQMwill block the roads leading to thePunjab.

Ayaz Latif Palijo President AwamiTehreek and leader of SindhProgressive Nationalist Alliance(SPNA) said Sindh governmentshould establish a surplus pool forthe non-Sindhi employees of federalministries and divisions whichwould be shifted to the provincialgovernment in the name of devolu-tion.

He said that there is large numberof jobless people in Sindh and due torecent heavy floods unemploymenthas increased in the province so afterthe devolution the Sindh governmentshould appoint Sindhi people on thejobs of devolved ministries.

He said after the completion ofdevolution, Punjab, Khyber-Pakhtunkhwa and Balochistan domi-cile based employees should betransferred to their home provincesand Sindh domicile based employeesshould be demanded from otherprovinces and rest of vacanciesshould be filled with local Sindhdomicile based people.

He warned if Sindh governmentdoes not settle this issue withy feder-al government with immediateeffect, then the Sindh ProgressiveNationalists Alliance and AwamiTehreek will lead a long strikeagainst the Sindh government overthis issue. -PPI

Sindh nationalistswarn of resistance

Staff Reporter

KARACHI: Advisor to Sindh ChiefMinister for Information & ArchivesMs Sharmila Farooqi paid glowinghomage to Shaheed Zulfiqar AliBhutto on the eve of PPP's 44thFoundation Day as saying ZA Bhuttostrengthened federation, democracyin real manner and peace in thecountry by sacrificing his life andmade his party energetic and ener-getic.

Shaheed Zulfikar Ali Bhutto madehectic struggle to develop provincesand boost harmony among them."Bhutto served the downtroddenpeople and brightened the name ofthe country and the nation at interna-tional level.

He also enhanced spirit of fraterni-ty among the people belonging to allwalks of life, she said while talkingto a delegation here on Sunday.

Sharmila said Shaheed BenazirBhutto also sacrificed her life forpeople, party and country and set anexemplary example of sacrifices,while President Asif Ali Zardari isalso making efforts to boost the partyand implement the policies ofShaheed Zulfiqar Ali Bhutto andShaheed Benazir Bhutto for the wel-fare of the country and the nation.

Shaheed Zulfiqar Ali Bhutto laidthe foundation of nuclear program in

Pakistan and provided vital projectsof national development includingthe Pakistan Steel Mills whichbrought huge development and pros-perity in the country.

Sharmila said that there is need tofollow the policies initiated byShaheed Zulfiqar Ali Bhutto for thecountry progress and safety whilePresident Asif Ali Zardari is doinggood in this regard.

Sharmila said ZA Bhutto foughtwith anti-democracy forces and sac-rificed his life for the achievement ofrights of people. Bhutto was the manwho never bowed down before dicta-tors who eliminated him physicallyfrom us but could not take him out ofhearts and minds of people. He wasthe voice of downtrodden people andshelter for people". The anti-democ-racy and dictatorial forces have alsoset machinery against President AsifAli Zardari in a bid to destabilize hisgovernment but PPP workers andparliamentarians are determined tofoil all nefarious designs of theseforces. The PPP is the party of mass-es and came to power with their sup-port, so evil forces would soon fail ingaining their nefarious design. Shesaid, the President is following les-son given by Shaheed Zulfikar AliBhutto and Shaheed Benazir Bhuttofor progress of people in true mannerbesides implementing PPP manifesto

in letter and spirits. "His reconcilia-tion policies are widely hailed underwhich he has taken all political par-ties on board for welfare of the coun-try and nation".

The advisor said as a number ofPakistan's delegation to the UnitedNation in 1957at the age of 29 years,Zulfikar Ali Bhutto addressed theSixth Conferences of the UnitedNations on "The Definitions ofAggression", a speech which is stillregarded as one of the best on theobject. As a participant at theInternational Conference in Geneva,Switzerland in March, 1958 ZulfikarAli Bhutto spoke for mankind withthe bold declaration: "The High Seasare free to all."

Sharmila said Zulfiqar Ali Bhuttowas the youngest Federal Cabinetmember in the history of Pakistan, atthe age of 30, adding he held the keyportfolios of Minister of Commerce,Minister of Information, Minister ofnational Reconstruction and Ministerof Fuel Power and Natural resourcesbefore becoming the ForeignMinister. As Minister of Fuel Powerand Natural resources, he signed apath breaking agreement for explo-ration of Oil and Gas with Russia in1960. He sat up a Gas and MineralDevelopment Corporation in 1961and Pakistan's first refinery in 1962at Karachi."

Sharmila eulogisesBhuttos' sacrifices

PPP 44th Foundation Day

KARACHI: The HomeDepartment, Government of Sindhhas proposed establishment ofCitizens Oversight Committee tolook after the affairs of "ComplaintCenter" at Home Minister's SindhOffice.

The establishment of OversightCommittee has been suggested byConsultant on Home Affairs,Sharfuddin Memon aimed at bring-ing together agencies and individu-als, citizens committed strive for jus-tice and law enforcement to establishand improve oversight of law andorder enforcement in the province.

The consultant focusing on con-cept of Community Policing in theentire province Sindh said that estab-lishment of an Oversight Committeewould not help streamline the func-tioning of complaint center but also

facilitate Community Policing."The objective of the proposal is

the reduction and prevention ofcrime through government, pro-active initiatives of other similarorganizations, police, business sec-tor and all members of the communi-ty making the province a crime freezone", the Consultant maintained.

The report revealed that the pro-posed citizens Oversight Committeewould work under the patronage ofChief Minister Sindh in order tofocus, unite, support, provide andregain citizens' rights against allcriminal elements. The report dis-closed that a UAN is also beinginstalled at the Home Minister's com-pliant center in order to provide easyexcess to general public to lodgetheir complains against police,human rights violation etc. -Agencies

HM to set up bodyto heed complaints

KARACHI: The annual election ofSindh High Court Bar Associationfor election of its president, vicepresident, honorary secretary, hon-orary treasurer and honorary jointsecretary was held on Saturday atSHCBA.

Around 1400 out of total 1815enrolled voters stood eligible to casttheir votes. Anwar Mansoor Khanand Ghulam Qadir Jatoi were candi-dates for post of president, whileAbdul Jabbar Qureshi, AdnanAhmed, Ashiq Ali Anwar Rana, S MGharib Nawaz Daccawal and YousufMaulvi for the post of vice president.

Abid S Zuberi and NadeemQureshi were in run for honorarysecretary, Akhlaq Ahmed Khan,Azra Saeed and Yousuf Iqbal for thepost of honorary treasurer, AmirAziz Khan, Mirza Sarfraz Ahmed

and Saify Ali Khan for honoraryjoint secretary.

Voting started in morning contin-ued till scheduled time without anydisruption.

Amon the candidates for the postof member managing committeewere Abida Parveen Channar,Ahmed Khan Bugti, AmeeruddinMeo, Azizuddin Qureshi, FareedAhmed A. Dayo, Habib Ahmad,Javed Hasan Malik, KhalidMahmood Dhoon, Manzoor Ahmed,Masood Ahmed Siddiqui,Muhammad Arshad Khan Jadoon,Muhammad Hasan Akber,Muhammed Mushaffy Ahmed,Muhammad Safdar, Naseem Javed,Perveen Pervaiz, Razia Sultana,Saeeda Siddiqui, Sajjad A. Khan,Shaukat Ali Shaikh and TariqMahmood Khawaja. -NNI

SHCBA polls held

Staff Reporter

KARACHI: A special cell has been setup at the city government level in con-nection with Muharram-ul-Haram.

The cell will remain in operation tilltwo months and 10 days. EDOMunicipal Services Masood Alam hasbeen appointed focal person in thisregard by city government.

One track of Banaras Chowk Flyoverwill be opened for vehicular traffic in 10days while the new road inMehmoodabad will also be available fortraffic within a week.

Meetings to review arrangements forMuharram-ul-Haram will also held attown's level in next two days to reviewthe problems of "azadars' and finaliza-tion of arrangements for Muharram-ul-Haram.

This was decided at a high level meet-ing chaired by Provincial Minister forInformation Technology Raza Haroonhere.

Sindh Minister Abdul Haseeb, EDOMunicipal Services Masood Aslam, rep-resentatives of police, rangers, city gov-ernment, town administrators andUlema-karam attended the meeting.

Raza Haroon said that city governmentand town administration would work

during Muharram-ul-Haram with thesame spirit they showed on recent Eid-ul-Azha.

He said that the town administrationshould take measures for cleanliness atthe routes of Muharram processionswithin their limits while the street lightsand road carpeting should also be donebefore Muharram.

He also asked KESC to change theload shedding schedule for Muharramand exempt the timings of load sheddingduring the holding of Majalis andMuharram processions.

He also directed that the members ofnational and provincial assembliesshould be taken on board for meeting atthe town level. He said that the HaqParast representatives will continue toplay their role in the solution to people'sproblems.

Sindh Minister Abdul Haseeb Khanalso spoke on the occasion and said thatthe repair of water and sewerage lines,road and street lights should be done onpreferential basis before Muharram-ul-Haram.

The representatives of azadar organi-zations in the meeting pinpointed vari-ous problems regarding Muharram-ul-Haram. It was decided at the meeting tosolve all of them without delay.

City Govt foundscell for Muharram

KARACHI: A police constable wassuspended and two others including SSPand SHO transferred for strictly observ-ing laws of the land.

According to details police stopped theSpecial Secretary Nazar MohammedBazdar while he reached the check-postto make entry into Red Zone area inKarachi with artillery, arms-laden pri-vate car.

The police claimed that Bazdar wasdrunk and behaved like an abnormal per-son after which they handcuffed him andlater shifted him behind bars for a night.

"His mouth stunk horribly with alco-hol smell and he insisted to take his car,carrying weapons, in the Red Zone areawhich is closed down for traffic after1:00AM," officials claimed.

According to a private TV channel,medical reports also confirmed thepolice claim that Bazdar was drunk

though he himself and officials havedenied the allegations.

Advisor to CM Sindh, SharmilaFarooqi when approached by media per-sons said that police manhandled andmisbehaved with Special Secretary andkept him in detention for a night.

She said that an investigation team hasbeen formed which will present a reportto the Chief Minister about the incident.

However, she did not respond whenasked how the police officials could besuspended as the investigation commit-tee has yet to compile a report and hasnot reached a decision so far.

It seems that police officials were sus-pended and transferred for making thebureaucrats to obey law.

Chief Minister Sindh has beenannoyed with policemen over stoppingvehicle of Bazdar, police said. -NNI

One suspended,two transferred

Police detaining of Secy Sindh

Abida Parveenhospitalisedafter stroke

LAHORE: Renowned singer AbidaParveen suffered heart attack hereearly on Sunday morning and wasrushed to hospital for medical aid.

Senior Dr Zulfiqar at the DoctorsHospital, where Abida Parveen wastaken said her angiography was car-ried out and necessary treatment wasprovided immediately. He said AbidaParveen is out of danger but would bekept under observation in the ICU forthe next 24 or 48 hours depending onher condition.

Abida Parveen, born in 1954 is asinger of Sindhi descent and one ofthe foremost exponents of Sufi music(Sufiana kalaam). She sings mainlyGhazals, Urdu love songs, and herforte, Kafis, a solo genre accompa-nied by percussion and harmonium,using a repertoire of songs by Sufipoets. -Agencies

Marriot culturalshow from 29

KARACHI: The Karachi Marriott isbringing a fabulous Thai Food andcultural show to promote hotels,General Manager Marriott (Karachi),Faisal Khan said.

He said this while addressing apress conference. He said there is adire need to promote hotels andencourage people to come in, asbecause of the entire country's situa-tion, the hotel industry is running indepressing mode.

He said the Thai Chef, Bee, therecipient of "Best Chef of the Year2010" award, will be cooking,scrumptious Thai cuisines for theguests. An extensive menu has beenprepared by Bee to make sure guestshave the most delicious food duringthe festival. Bee is famous for cook-ing food with utter carefulness andpersonal supervision. -PPI

Ebad toopen forum

ISLAMABAD: SindhGovernor Dr Ishrat-ul-Ebadwill inaugurate 38th India,South Asia, Africa and MiddleEast Forum Pakistan onDecember 2nd at a local hotelat Dubai.

ISAAME Forum is beingorganized by Lions ClubsInternational from December 2to 5, 2010 in Dubai. SindhMinister for Tourism ShaziaMarri will be key note speakeron Dec 4th 2010 and promi-nent business leader SMMuneer President InternationalLion Club, Chairman organiz-ing committee Malik KhudaBukhsh & well renownedsocial & business leaders willaddress on the occasion.Chairman organizing commit-tee ISAAME Forum Pakistan,Malik Khuda Buksh said that itwas a challenge to hold thisevent. He said ISAAMEForum will improve the imageof Pakistan. We have to proveto the world that Pakistan is apeaceful and not a terroristcountry as occasionallylabeled by the western media,he added. -PPI

Chhipa urges

to serve needyKARACHI: The philosophybehind provision of two timemeal to the deserving peoplewas initiated with a concept ofoffering assistance to themregarding saving their moneythey used to spend on theirdining needs.

The money they save thushas helped them spend moreon better feeding and educa-tion of their kith and kin,Chairman Chhipa WelfareAssociation, Ramzan Chhipasaid this on Sunday while lis-tening to those who receivedfree food at "Chhipa's freefood service" in the city.

He served food among theneedy and declared that theywere heaven's guest.However, he urged "philan-thropists," the rich and peoplethat they should join "CWA"in their efforts for reducingfinancial burden of the poorand low income people.

He extended his gratitude tothose who have been support-ing CWA regarding theirneeds for food, medicines,ration and commodities fortheir better living. -PPI

KARACHI: A group photograph of Mohammad Khalid Abdul Razak, CG of Malaysia, Shazia MarriMinister for Tourism, Christian Ramage CG of France, Fassa Lis R Adenan CG of Indonesia, Zulfiqar

Ahmed Malik, GM PC Hotel and other during inaugural ceremony of “MELAKA FOOD & CULRUTALWEEK” at local hotel. -Staff Photo

Shifting of non-Sindhi employees during devolution

3Monday, November 29, 2010

NEW YORK: US oil pricesedged lower in light post-holi-day trading on Friday, pressuredas Europe's debt crisis pushedthe euro to a two-month lowagainst the dollar but withpipeline and refinery snags andgeopolitical tensions helpinglimit oil's losses.

Oil prices seesawed as US crudetrading volume totaled only243,802 lots, well below the465,481 lots traded on the 2009post-Thanksgiving Friday and 62per cent below the 30-day average.

"It was a relatively strong per-formance for crude given therally in the dollar and the slip inthe S&P. A bullish market senti-ment has investors focusing onbullish news and ignoring bear-ish news," said Tim Evans, ener-gy analyst at Citi FuturesPerspective in New York.

US crude oil for January deliv-ery fell 10 cents to settle at $83.76a barrel, well above its $82.78low. Front-month crude futuresended $2.25, or 2.76 per cent,higher on the week, snapping astring of two weekly losses.

The front-month crude pricehas not dropped below $80 sinceOct. 20 and has seesawed afterreaching a 25-month peak at$88.63 on Nov. 11. In London,ICE January Brent crude fell 52cents to settle at $85.58 a barrel.

As the euro was kept underpressure and the dollar strength-ened amid the euro-zone debtcrisis, European officials deniedreports on Friday that Portugalfaced pressure to seek a bailoutand Spain ruled out needing helpto manage its finances.

"We viewed the ability of thecrude market to maintain

Wednesday's strong 3 per centprice gains as impressive giventoday's two-month lows in theeuro and the significant weak-ness in today's equity markets,"Jim Ritterbusch, president atRitterbusch & Associates inGalena, Illinois, said in a note.

Helping limit oil losses onFriday was news a power outageforced Enbridge Inc to cut flowson its 670,000 barrel-a-day, Line6A, Canada-to-US crude oilpipeline by about a third,according to market sources.

US gasoline futures endedlower, but also seesawed andposted intraday gains amidrefinery snag news as Tuesday'sDecember refined products con-tract expirations approached.

Brokers and traders also point-ed to geopolitical concerns lim-iting oil losses.-Reuters

US oil dips on euro woesamidst sparser turnover

NEW YORK: The euroshould extend losses againstthe dollar in the near termafter its worst week in overthree months on fearsPortugal and Spain will benext to need bailouts afterIreland.

Technical charts and optiontrading also suggest increas-ing bearishness on the euro.The euro slid to a two-monthlow at $1.32 on Friday andwas down 3.5 per cent lastweek, on pace for its biggestweekly percentage dropsince mid-August.

Concerns over a deepeningdebt crisis in the euro-zoneand escalating tensions in theKorean peninsula could liftthe safe-haven US dollar.The greenback could get anadded boost if a key US jobsreport this Friday beatsexpectations.

"The bigger question is willSpain and Portugal remainimmune and I would lookand say, 'no'," said GregSalvaggio, vice president oftrading at Tempus Consultingin Washington.

"The situation in the euro-zone will continue to deterio-rate," he said, adding theeuro could drop "below$1.30 and perhaps as low as$1.25 by year-end."

The premium investorsdemand to hold Irish andSpanish government bondsrather than German bench-mark Bunds hit new eurolifetime highs on Friday.Portuguese bonds also under-performed after a report saidthe majority of euro-zone

states and the EuropeanCentral Bank were urgingPortugal to apply for abailout.

European officials saidreports Portugal was underpressure to seek a bailoutwere "absolutely false".Spain on Friday ruled outthat it needs help to manageits finances.

Nomura currency strate-gists Jens Nordvig andCharles St-Arnaud said theoutlook on Spain, whichaccounts for 11.8 per cent ofeuro-zone economy, will be aprimary driver of the euro inthe coming weeks.

"In a scenario whereSpanish spreads widen toPortugal's current levels, wesee the risk premium on theeuro increasing from around10 per cent to above 20 percent, and this could see theeuro trade all the way to 1.23against the US dollar," theywrote to clients. "The bigquestion is whether this isthe central case."

BEARISH ON EURO,KOREAN CONFLICT

On Friday, the euro lasttraded at $1.3239, down 0.9per cent on the day, afterfalling as low as $1.3200 ontrading platform EBS. Theeuro hit a four-year low of$1.1876 in June in the wakeof the Greek debt crisis.

Bearish momentum in theeuro will likely continueafter the currency breachedseveral key support levelslast week, including itsAugust high at $1.3334 andthe 61.8 per cent retracement

of its August to Novemberrise at $1.3232.

Next support comes inaround the 200-day movingaverage at $1.3131, followedby $1.3080, the 50 per centretracement of the euro'sJune to November rally.

Ashraf Laidi, chief marketstrategist at CMC Markets inLondon, said a close belowthe important $1.3250/60trendline support could seethe euro/dollar slide towards$1.27.

In the options market, riskreversals have showedincreasingly bearish senti-ment on the euro, while ana-lysts at Credit Suisse noted"significant buying of bear-ish euro structures againstthe dollar, yen and the Swissfranc."

On Friday, one-montheuro/dollar risk reversalstraded at -2.3, with a biastoward euro puts, suggestingmore investors are bettingthe euro will fall than rise.That was down from -1.6 onMonday. In mid-October,euro/dollar risk reversalstraded near neutral levels at -0.55.

Investors will also closelywatch developments in theKorean peninsula, which willlikely benefit the dollar assafe-haven demand rises.

Analysts said the dollarshould also benefit if UShousing and jobs data thisweek comes in stronger thanexpected, which would rein-force expectations the USeconomy is outperformingthat of Europe. -Reuters

Euro to fall on contagionfears; US jobs data eyed

US dollar weekly outlook

US nonfarm payrolls report also in focus

Euro/dollar may decline towards $1.25 by year-endEurozone debt crisis, Korean conflict to lift US dollar

SINGAPORE: Asian curren-cies had their biggest weeklyloss in six months as anexchange of artillery fire on theKorean peninsula deterredinvestment in the region andEurope's debt crisis bolstereddemand for dollars.

"Asian currencies have suf-fered from the contagion effectfrom Europe," said DariuszKowalczyk, senior economistat Credit Agricole CIB in HongKong. "We also had an escala-tion of tensions from North andSouth Korea."

The won fell 2.2 per cent lastweek to 1,159.63 per dollar inSeoul, its biggest loss in fivemonths. Singapore's dollardropped 1.9 per cent toS$1.3208, the steepest slidesince February 2009, andMalaysia's ringgit retreated 1.5per cent to 3.1630.

The won slumped 1.9 per

cent after North Korea, via itsKCNA state news agency, said"escalated confrontation wouldlead to a war." The USS GeorgeWashington aircraft carrier willtomorrow begin exercises offthe Korean peninsula withnaval vessels from the South ina show of force that the Northwarned will take the countries"closer to the brink of war."

"This is really a big risk forthe whole region, leading to amassive sell-off of the won,"said Minoru Shioiri, chiefmanager of currency trading inTokyo at Mitsubishi UFJMorgan Stanley Securities Co."People don't want to hold thewon and other regional curren-cies over the weekend whenwe don't know what will hap-pen."

The ringgit had its biggestweekly slide in six months as acentral bank report showed the

economy slowed more thaneconomists forecast in the thirdquarter. Gross domestic prod-uct rose 5.3 per cent from ayear earlier, less than the 8.9per cent gain in the previousthree months and the median5.9 per cent increase forecast ina survey of economists.

The Philippine peso fell 0.9per cent to 44.195 per dollar, athird weekly decline, as a Nov.25 report showed GDP unex-pectedly dropped 0.5 per centin the third quarter from theprevious three months.

China's yuan declined 0.42per cent last week to 6.6675 perdollar, its biggest loss sinceDecember 2008.

Taiwan's dollar fell 0.5 percent last week to NT$30.83,while Indonesia's rupiahretreated 0.8 per cent to 9,013.Thailand's baht fell 0.8 per centto 30.20. -Agencies

Most log weekly losseson Korea attack, EU woes

Asian currencies

NEW YORK: US cottonfutures finished down 4 per centon Friday, falling by their dailylimit intraday and bouncing likea yo-yo in sideways dealingsafter dropping more than 25 percent from a record high hit twoweeks ago.

The benchmark contractclosed the week down 9.2 percent, the biggest weekly loss forthe second-position contractsince February 2009.

March cotton futures made thebiggest losses for the day on the19-commodity Reuters-JefferiesCRB index, just one sessionafter being the biggest gainers.They were the biggest losers onthe index the day before that.

Volume was thin, however, in

a slightly abbreviated sessionfollowing the US Thanksgivingholiday on Thursday.

The benchmark March cottoncontract on ICE Futures USclosed down 4.83 cents, or 4.1per cent, at $1.1176 per lb,slightly paring losses after fallingby the daily limit of 5 cents to asession low at $1.1159.

The volatile market is down26 per cent from its record highat $1.5195 reached on Nov. 10,on heavy buying by Chinesemills and investors.

Prices were weighed down inthin dealings by negative senti-ment in the broad marketplace,pressured by a drop in the euro toa two-month low against a resur-gent dollar. Speculation mounted

that Portugal would need to fol-low Ireland in seeking financialaid, further unsettling investors.

"For today the weakness is alight day. It's Friday afterThanksgiving. I think some ofthe mills have backed off," saidBill Raffety, senior analyst forfutures brokerage Penson.

The CRB was down about 0.4per cent for most of the session.

Total volume was light ataround 15,760 lots, up slightlyfrom the 13,520 lots dealt on theFriday after Thanksgiving in2009, Thomson Reuters prelimi-nary data showed. The May cot-ton contract at China's ZhengzhouCommodity Exchange last tradeddown 1,115 yuan at 24,470 yuanper tonne. -Reuters

US cotton sheds 4pc,ends week 9pc lower

NEW YORK/LONDON:Gold fell 1 per cent on Fridayon thin participation from USinvestors after Thursday'sThanksgiving holiday and two-month highs in the dollar,which weighed on the yellowmetal's position as a currencyalternative.

Gold bullion fetched bids atjust over $1,363 an ounce lateafternoon in New York, versusThursday's closing bid of$1,374.12. The intraday low of$1,350.10 held above the keysupport of $1,350.

Gold futures' most-activecontract in New York,December, settled down $10.60at $1,362.40 an ounce.

Other precious metals felltoo. Silver was down almost 3per cent, palladium 2 per centand platinum about 1 percent.

"Gold's come off because thedollar's strengthened," saidDavid Thurtell, analyst at

Citigroup. "If a rescue is donefor Ireland, I would think goldwill lose some of its bid toneand sell off next week."

Technical charts and contractoptions studied by Reuters onFriday showed the euro shouldextend losses against the dollarin the near term after its worstweek in over three months onfears Portugal and Spain will benext to need bailouts afterIreland.

In euro terms, bullion priceshad eased to below 1,025 eurosan ounce compared with1,028.76 euros late onThursday. But it was still firm-ly above the 1,000 euros markit fell through on Monday forthe first time in a week.

Volume in gold thin futureswas particularly thin as USmarkets observed their tradi-tional abbreviated session onthe Friday after Thanksgiving,which is popularly known as"Black Friday."

By midday in New York, vol-ume in gold futures stood at apaltry 221,000 lots -- just abouthalf of the level seen the dayafter the 2009 Thanksgiving.

"Gold is ... not really march-ing to any drum at themoment," said Simon Weeks,trader at London'sScotiamocatta.

"I think it's just drifting inthin quiet Friday conditions asthe currency markets move," hesaid, adding that bullion couldhead lower to between a $1,345and $1,350 next week.

Besides being a currencyalternative, gold also acts as asafe haven in times of politicaltroubles.

But despite the geopoliticaltensions after this week'sartillery exchange betweenNorth and South Korea, goldhas not rallied. Analysts saidthis may have to do largely withthe dollar's strength, which isundermining gold. -Reuters

Gold down in thin trade;poised for more drops

NEW YORK/LONDON: ICEsugar futures reversed early loss-es to settle higher for the fourthstraight day on Friday due tofund buying, while coffee fell asEurope's debt crisis pushed theeuro to a two-month low againstthe dollar and as investors wor-ried about conflict in Korea.

Cocoa futures settled strongeras the London market led theway up, ahead of the secondround of presidential electionsin top grower Ivory Coast.

Volume was thin after the USThanksgiving holiday onThursday and the ICE agricul-tural markets dealt in a slightlyabbreviated session.

ICE raw sugar futures foundstrength in follow-through buy-ing from Wednesday as demandcontinued to be viewed asstrong, particularly in China,dealers said.

ICE March raw sugar rose0.30 cent or 1.1 per cent to endat 28.25 cents per lb, closingthe week up 8 per cent. Volumewas light at around 36,305 lots,down nearly half from theFriday after Thanksgiving in2009, preliminary ThomsonReuters data showed.

Liffe March white sugar fin-ished up $1.10 at $718.40 pertonne.

Dealers said the market facedstiff resistance above 30 cents alb, having touched a 30-yearhigh of 33.39 cents a lb on Nov.11, underpinned by low globalstock levels. Coffee futures set-tled lower along with the com-modity complex, with investorsstill concerned about contagionstemming from the euro-zone'sdebt problems.

ICE March arabica coffeefutures dropped 4.75 cents or2.3 per cent to finish at $2.0270per lb, closing the week down 4per cent, the biggest weeklyloss since Aug. 8.

Robusta coffee futures eased,with the harvest in top produc-er Vietnam expected to gatherpace over the next few days.

Liffe January robusta coffeefutures slipped $13 to settle at$1,816 per tonne.

Cocoa futures settled higher. Liffe March cocoa settled up

27 pounds at 1,874 pounds.ICE benchmark March futurescrept up $1 to settle at $2,794per tonne, finishing the weekdown 2.6 per cent.-Reuters

Sugar gains, coffee losesamid eurozone crisis

TORONTO: The Canadiandollar skidded a full US centagainst the greenback on Fridayas investors flocked to the UScurrency on worries about thedebt woes of peripheral euro-zone countries.

Worry about indebtedEuropean nations intensified asnewspaper reports shiftedattention from Irish debt toSpain and Portugal, promptingdenials from the euro-zonegovernments that they mightrequire bailouts.

As well, China warnedagainst military acts near itscoastline ahead of US-SouthKorean naval exercises thatNorth Korea said risked push-ing the region towards war. TheNorth shelled a South Koreanisland earlier this week.

"The Canadian dollar is suf-

fering basically as a conse-quence of European fiscalproblems and Korean peninsulaconflict," said Eric Lascelles,chief Canada macro strategistat TD Securities.

"The risk aversion story isblooming again and the US dol-lar is once again the darling inthe eyes of the market and thathas left the Canadian dollar alittle bit less glamorous."

The Canadian currencytouched a low of C$1.0247 tothe US dollar, or 97.59 UScents. It ended the session atC$1.0200 to the US dollar, or98.04 US cents, down sharplyfrom Thursday's close atC$1.0097 to the US dollar, or99.04 US cents.

The Canadian currency alsofell for the third consecutiveweek, dropping 0.2 per cent.

Key Canadian data due outnext week includes growth datafor September and the thirdquarter, as well as Novemberemployment data. The questionon investors' minds will bewhether global or domestic fac-tors dominate.

Firas Askari, head of foreignexchange trading at BMOCapital Markets, said employ-ment data will be key ahead ofthe Bank of Canada's Dec. 7interest rate announcement.

"I'm thinking it could be a pret-ty strong number which couldreally put the Bank of Canada ina bit of a bind," said Askari.

"We're seeing some strongsigns of the Canadian economystarting to stabilize and they aredefinitely going to be on guardfor any signs of heating up," hesaid.-Reuters

Canada dollar drops by apenny on eurozone woes

Copper falls onUSD, China

demandworry

NEW YORK/LONDON:Copper fell amid thin trading onFriday as the euro-zone debt crisisboosted the dollar and fear ofinterest rate hikes in China stokedworries about demand from theworld's top metals buyer.

Three-month copper on theLondon Metal Exchange closedat $8,239 a tonne, versusThursday's finish of $8,340, andran into its third consecutiveweekly loss.

In New York, December copper,the most active futures contractfor the base metal on the COMEXdivision of the New YorkMercantile Exchange, settleddown 0.45 cent at $3.7510 per lb.

Volume was light, particularlyin New York futures, as US mar-kets observed abbreviated tradingsessions for the "Black Friday"that followed Thursday'sThanksgiving holiday.

At midsession, COMEX cop-per did just around 37,000 lotsversus Wednesday's tally ofabove 59,000. On Black Friday,2009, volumes were around44,000 lots.

"The Chinese look likely toraise rates again this year," saidJohn Meyer, analyst at London-based investment bank Fairfax."The Chinese have slowed theirbuying (and) any slowing ofChinese activity pulls pricesdown."

Among other base metals, alu-minium closed at $2,270 a tonneagainst Thursday's close of$2,281.

Zinc fell as much as 4.6 percent to a session low of $2,098a tonne, later closing at $2,105a tonne, versus Thursday'sclose of $2,200 a tonne. Theglobal zinc market was in sur-plus by 175,000 tonnes in thefirst nine months of the year, abulletin from InternationalLead and Zinc Study Groupshowed.

Battery material lead closed at$2,275 a tonne versus a close of$2,331 a tonne.

Tin closed at $24,100 a tonneversus $24,300 while nickel wasat $22,550 a tonne from $22,800.-Reuters

US soy hit byfirmer dollar,

Chinese salesCHICAGO: US soybeanfutures fell 1.3 per cent onFriday, snapping a three-dayrally under pressure from afirmer dollar and news thatChina will sell soybeans fromits reserves for the first timethis season.

Despite the day's slide in soy-beans, all three markets lockedin gains for the week afterfalling in the previous twoweeks, as profit-taking andworries that anti-inflationefforts in China would hurtdemand gave way to bargain-hunting by commercial firms.

At the Chicago Board ofTrade, January soybeans settleddown 16-1/2 cents at $12.38-1/2a bushel. Soy volume was a thirdof the 30-day average, and offabout 10 per cent from theFriday after Thanksgiving lastyear.

December wheat ended up 3/4cent at $6.48-1/4 a bushel, andDecember corn ended down 1/2cent at $5.38-1/4. Corn volumetotaled less than half its 30-dayaverage and fell 43 per centfrom a year ago.-Reuters

Sterling fallsagainst USDfor 3rd weekLONDON: The pounddropped to the weakest in twomonths against the dollar astensions between North andSouth Korea escalated, drivinginvestors away from assets per-ceived to carry greater risks.

The Financial TimesDeutschland said euro-areapolicy makers are pushingPortugal to seek aid for itseconomy. North Korea's state-run news agency said plannednaval exercises by South Koreaand the US moved the peninsu-la "closer to the brink of war."

The pound fell 1 per cent to$1.5597 at 4:33 p.m. inLondon, after dropping to$1.5590, the weakest sinceSeptember 21. It was littlechanged against the euro at84.78 pence, after earlierappreciating 0.7 per cent to84.21 pence.

The pound declined againstthe dollar for a third week,falling 2.4 per cent. It appreci-ated 0.9 per cent for the weekversus the euro.

European finance ministersplan to complete an agreementfor an international aid packagefor Ireland on Nov. 28, aEuropean Union official saidon condition of anonymity.

"Reports that they're trying toaccelerate the process inIreland could be seen on thecross as a sterling positive, soeuro-sterling may keep thepressure on the downside asefforts appear to be stepping upin Ireland," said Stannard.

Britain's Treasury sold 3 bil-lion pounds ($4.7 billion) of30, 91 and 183-day gilt billstoday, according to the UKDebt Management Office.

Sterling has weakened 3.9 percent against a basket of itsdeveloped-country peers thisyear, according to BloombergC o r r e l a t i o n - W e i g h t e dCurrency Indexes, making itthe third- worst-performingcurrency after the euro andNorwegian krone. It has appre-ciated 0.9 per cent in the pastmonth. -Agencies

Al Qaeda scares airlineswith parcel bombsworth $4,000. War

with the Taliban costs theWest billions of dollars aweek. North Korea shells dis-puted land, winning instantfresh attention in a standoffwith major powers.

Weaker combatants havealways used unconventionalor inexpensive means to defystronger foes, including guer-rilla warfare and suicideattacks that depend on agreater willingness to sacri-fice life.

This approach can be deci-sive. Of all "asymmetric" warssince 1800 in which one sidehad far more armed powerthan the other, the weaker sidewon in 28 per cent of cases,according to a 2001 study byUS political scientist IvanArreguin-Toft.

The ratio may now be set toshift further in favour of theunderdog.

The revelation this year of anovel way to use computers tosabotage an enemy's lifelineinfrastructure suggests a pow-erful new kind of weapon ismoving within reach of weakstates, militant groups andcriminals, some analysts say.

That weapon is likely to be avariant of Stuxnet, a highlydestructive Internet worm dis-covered by a Belarus compa-ny in June and described byEuropean security companyKaspersky Labs as "a fear-some prototype of a cyber-weapon", analysts say.

"A GREAT DANGER"

"Stuxnet is like the arrival ofan F-35 fighter jet on a WorldWar I battlefield," bloggedGerman industrial control sys-tems expert Ralph Langner.

Whoever created the bug,believed by many to have tar-geted an Iranian uraniumenrichment facility, the joblikely required many man-hours of work and millions of

dollars in investment.But now that its code has

been publicly analysed, hack-ers will need only a fewmonths to develop a versionof the customised malware forblack market sale, someexperts say.

Ali Jahangiri, an informa-tion security expert whotracks Trojan codes, harmful

pieces of software that looklegitimate, describes thatprospect as "a great danger."

"The professional Trojancodemakers have got the ideafrom Stuxnet that they couldmake something similarwhich can be used by govern-ments, criminalsor terrorists," hetold Reuters.

Stuxnet's men-ace is that itreprogrammes acontrol systemused in manyindustrial facili-ties to inflictphysical dam-age.

At risk isa u t o m a t i o nequipment com-mon to the net-works on whichmodern societiesdepend -- powerplants, refiner-ies, chemicalplants, pipelines and transportcontrol systems.

Analysts say they suspecthackers are rushing to build aversion of the worm and sell itto the highest bidder beforeexperts can install counter-

measures plants across theglobe.

"My greatest fear is that weare running out of time tolearn our lessons," US infor-mation security expertMichael Assante told aCongressional hearing onStuxnet this month.

"Stuxnet ... may very wellserve as a blueprint for similar

but new attacks on controlsystem technology," saidAssante, President of the USNational Board of InformationSecurity Examiners, whichsets standards for security pro-fessionals.

Langner says multinational

efforts against malwareinspired by Stuxnet won'twork since "treaties won't becountersigned by rogue nationstates, terrorists, organisedcrime, and hackers."

"All of these will be able to

possess and use such weaponssoon," he said. If the nextStuxnet cost less than $1 mil-lion on the black market, then"some not-so-well equippednation states and well-fundedterrorists will grab theircheckbooks."

As well as favouring smallstates, cyber appears to be atool of special value for

Russia andChina, since itallows them tobecome equalsto the UnitedStates in asphere whereUS conven-tional militaryd o m i n a n c ecounts for

nothing.Stuxnet is a powerful exam-

ple of the fastest-growing sortof computer bug -- customisedmalware written specificallyto attack a precise target.What is new is its power, andthe publicity it has attracted

through a presumedlink to Iran.

That publicity willhave drawn attentionin small nations suchas North Korea,which can be expect-ed to take an interestin acquiring aStuxnet-like capabil-ity to balance aninferiority in conven-tional arms with itsUS-backed southernfoe.

Like some impov-erished countries inAfrica, North Koreahas a cyber advan-tage -- it has so fewsystems dependent

on digital networks that a bigcyber attack on it would causealmost no damage, writes for-mer U.S National SecurityCoordinator Richard Clarke inhis book Cyber War.

"A MATTER OF TIME"

A state contemplating use ofsuch a devastating weapon ina speculative attack could notguarantee it would not befound out, and might prudent-ly restrict its use for all-outconflict.

However many terroristgroups, particularly those witha tradition of glorifying mar-tyrdom, would have no con-cerns about launching cyberattacks.

"It can only be a matter oftime before terrorists begin touse cyber space more system-atically, not just as a tool fortheir own organisation, but asa method of attack," BritishArmed Forces Minister NickHarvey said in a speech thismonth.

A report on cyber warfare byBritain's Chatham Housethink tank said there was noevidence to show terroristgroups had a cyber warfarecapability but they wereincreasingly web-literate,using chat rooms to propagatetheir message and everydayitems such as smartphones,online mapping and internetinfrastructure as operationalsupports in attacks.

What is not in doubt is alQaeda's willingness to usesuch a weapon to inflict eco-nomic damage on the West ifit ever had the opportunity,experts say. Few doubt itwould be able to get fundsfrom rich donors to buy themalware on the black market.

Al Qaeda's Yemen wing saidit cost just $4,200 to mail twoparcel bombs from Yemen toAmerica last month.Intercepted in Britain andDubai, the bombs sparked aglobal security alert.

"This strategy of attackingthe enemy with smaller butmore frequent operations iswhat some may refer to as thestrategy of a thousand cuts," itsaid. "The aim is to bleed theenemy to death."-Reuters

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An MPS of noconsequence

The State Bank of Pakistan is scheduled to

issue Monetary Policy Statement today. In the

worst scenario a 100bps increase in discount

rate is expected but 50bps is most likely. The

whiz kids, who believe tight monetary policy is

a must for containing inflation, will prevail

over those who consider high interest rate most

detrimental for fresh investment. Yet another

rationalisation that high interest rate can help in

containing government borrowing sounds most

absurd.

While rising global prices of commodities,

particularly of that of crude oil, are going to be

a major determinant of the overall inflationary

trend. Moreover, RGST, if implemented will

add more legs to the inflationary uprun. Apart

from this, the continued increase in power tar-

iff in order to tackle circular debt is also expect-

ed to play its role in worsening the situation.

Disappointedly, the policy planners do not

accept the harsh reality that Pakistan suffers

from cost-pushed inflation. The persistent hike

in electricity/ gas tariffs and POL products is

one of the major reasons for the same. Hike in

tariffs in the name of full recovery of cost,

without making any effort to contain T&D and

UFG losses is meaningless.

There can't be two opinions that the prime

reason of high government borrowing is due to

extravaganzas. It seems that the present regime

is on the honeymoon and wishes to enjoy as

much as possible. It is also evident that instead

of opting for austerity drive they are begging

for more and more without realising that debt

servicing has already become unsustainable.

With rulers not willing to curtail expenses, hop-

ing that hike in interest rate will contain gov-

ernment borrowing is absolute trash.

In the absence of any meaningful foreign

inflows, the government has to rely on domes-

tic sources to fill in the funding gap. Federal

government borrowing from the central bank in

first week of November was Rs200 billion.

Excessive government borrowing that too at a

fabulous rate is most beneficial for the com-

mercial banks. They are able to earn huge risk

free return out of which a paltry payment is

made to depositors.

It is on record that banking spreads in

Pakistan hover around 7.5 per cent. In the pre-

vailing scenario banks are least interested in

deposit mobilisation as well as lending to the

private sector.

The inter-bank market is likely to remain liq-

uid in the short-term with slight upward adjust-

ment in rates. However, it will be interesting to

see the movement in yields when the govern-

ment looks to borrow in the long-term through

Pakistan Investment Bonds and the subsequent

impact on rates of return for National Savings

Schemes.

Let’s see what happens.

4Saturday, November 27, 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

Head office

111-C, Jami Commercial Street 11, Phase VII, DHA KarachiTelephone: 92-21-5311893-6 Fax: 92-21-5388428

URL: www.thefinancialdaily.comEmail Address: editor@thefinancialdaily.com

Lahore office

24- Peshawar Block, Fortress Stadium, Lahore

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

Email Address: editor@thefinancialdaily.com

The Financial Daily InternationalVol 4, Issue 112

"Stuxnet ... may very wellserve as a blueprint for

similar but new attacks oncontrol system technology,"

said Assante, Presidentof the US National Boardof Information SecurityExaminers, which setsstandards for security

professionals

Country A is drowning.A catastrophic reces-sion has thrown a

tenth of its workforce out ofjobs in just two years. Firmsare shutting, banks are bare-ly solvent and the IMF hasbeen called in to bail out thegovernment from crushingdebt. The standard of livingis eroding, taxes are beinghiked, state spending isbeing slashed, and thedeeply unpopular govern-ment is being forced into anelection it is certain to lose.

Country B has a huge andgrowing trade surplus. It isattracting a flood of interna-tional investment from glob-al firms, building thrivinghi-tech export industries.Exports grew this year by 6per cent and now amount tomore than $50,000 per per-son. Taxes are low and stay-ing low, and the English-speaking population is high-ly skilled.

Both countries are Ireland.And therein lies a tale, orrather two tales: of a domes-tic economy that is in tatters,side by side with a globalexport economy in the rud-est of health.

In some respects, the suc-cess of Ireland's exporteconomy obscures just howthoroughly ruined itsdomestic economy has beenby the bursting of its proper-ty bubble in 2008.

Whole industries havecompletely vanished in amatter of months. Sincegovernment revenuedepends mainly on domesticeconomic activity, the sud-den fall in output has blownapart what were once exem-plary public finances.

Once again, the Irish areleaving an island that seemsunable to support them, aparticularly resonant omenin a country that had finallyreversed centuries of emi-gration.

But while all that misery

has piled up, Ireland's"Celtic tiger" export econo-my has quietly continuedpurring.

TRANSFORMEDThe story has been often

told of how Ireland wastransformed in the 1990sfrom one of the poorestcountries in Europe to oneof the richest by attracting

exporters, especiallyAmerican firms who turnedit into their base forEuropean operations.

US firms have investedmore in Ireland than inBrazil, China,India and Russiacombined, saysJ o a n n eRichardson, CEOof the AmericanChamber ofCommerce.

The clout ofthose businesseswas on display onThursday whenFinance MinisterBrian Lenihan,fresh from announcing 15billion euros in spendingcuts and domestic tax rises,addressed the AmericanChamber of Commerce'sannual Thanksgiving lunch.

In between the pork andpheasant terrine and theroast turkey, he reassured aballroom full of US businesschiefs that Ireland's 12.5 percent corporate tax rate wasuntouchable.

That tax rate, far lowerthan in the other countries ofWestern Europe, has beenIreland's calling card incompeting for internationalinvestment. It infuriatesEuropean neighbours that

are now funding Ireland'sbailout and think it com-petes unfairly with theirhigher rates, but it remainspopular in Ireland.

Ireland's main politicalparties are committed tokeeping it, and even arguewith each other over whowill do a better job defend-ing the low rate from outside

meddlers that want it hiked.With growth slowing in

the United States andEurope, Barry O'Leary, headof Ireland's investment pro-motion agency IDA, has his

eyes on attracting invest-ment from Asia. The IDAhas opened offices inMumbai, Shanghai,Moscow and Sao Paolo, andis opening new ones inShenzen, Singapore andBangalore.

Foreign firms are not fright-ened off by the chaos in thedomestic economy, whichdoes not really affect themsince they don't rely onIreland's domestic demandfor customers or on its finan-cial system for funding, hesaid.

"Ireland has such a strongtrack record of companiesoperating here and they are

not caught up in the domes-tic financial system."

The IDA's O'Leary saysforeign direct investmentwas responsible for 110 bil-lion euros of Ireland's 159billion in exports last year.

For the Irish, the biggestquestion is whether the for-eign companies will be ableto provide jobs. For now,

they seem to be the onlysource of them.

Brian Murphy, CEO of theIrish branch of recruitmentfirm Morgan McKinley,Ireland's biggest profession-

al recruiter, saysjob vacancies arenow just half ofwhat they werebefore the bust.Most of that losshas been amongfirms serving thedomestic market,while demand forworkers amongmulti-nationalshas held up muchbetter and is now

growing.Multi-nationals made up

just 40 per cent of the vacan-cies on Morgan McKinley'sbooks before the crisis butnow make up nearly twothirds, Murphy said.Employers are looking forcomputer programmers,experts in pharmaceuticalsand life sciences, account-ants, supply-chain managersand other skilled workers.

With unemployment at 14per cent instead of 4 percent, there are a lot moreapplicants for those vacan-cies, which is only goodnews for foreign firms whowill now find Irish workers

"more competitive in thewage space", Murphy said.

Richardson rattles off thenames of US firms that haveannounced plans to hire inIreland in recent months:Ebay, IBM, Google, GEHealthcare, Covidien.

Facebook opened its officelast year, hiring 200 people.Video game companyActivision Blizzard hired800.

Intel, whose $7 billion,360 acre "centre of manu-facturing excellence inEurope" in county Kildare isperhaps the grandest monu-ment to Ireland's export-driven boom, is looking fora Senior Silicon ValidationEngineer and a Thin FilmsDeposition Engineer, amongother vacancies.

That may be cold comfortfor Irish bricklayers, plaster-ers, estate agents, carpentersand property lawyers whohave been cast out of workin their thousands.

When and if the widereconomy picks up, itremains to be seen howmany of them will still bearound. Last year saw thefirst net migration out ofIreland since the boomyears, when Ireland attract-ed tens of thousands of for-eign workers a year.

Bobby Stewart, 32, a fundvaluer who lost his job fourmonths ago, went down tothe welfare office this weekto take his name off theunemployment rolls afterfinally finding a new job witha pay cut of around 20 percent.

"If I hadn't got a job byChristmas, I would havemoved to London. This waslast ditch," he said. One ofhis close friends, a carpen-ter, had recently left forAustralia.

"It's not just a case of wait-ing around. It's a case ofmaybe there won't be any-thing."-Reuters

A Tale of Two Lands

Both countries are Ireland. And therein liesa tale, or rather two tales: of a domestic economythat is in tatters, side by side with a global export

economy in the rudest of health

Cyber TerrorismHas a Deadly Bug

Weaker combatants have always usedunconventional or inexpensive means

to defy stronger foes, including guerrillawarfare and suicide attacks that depend on

a greater willingness to sacrifice life“

In some respects, thesuccess of Ireland's export

economy obscures just howthoroughly ruined its

domestic economy has beenby the bursting of its

property bubble in 2008

FERTILISER000 tonnesUrea Offtake (Jan to Sep 10) 4,190Urea Offtake (Sep 10) 324Urea Price (Rs/50 kg) 851DAP Offtake (Jan to Sep 09) 680DAP Offtake (Sep 10) 226DAP Price (Rs/50 kg) 2,628

AUTOMOBILE ASSEMBLERPAK SUZUKI MOTORUnitsProduction (July 10 to Oct 10) 26,842

Sales (July 10 to Oct 10) 25,279

Production (Oct 10) 7,311

Sales (Oct 10) 7,459

INDUS MOTOR COProduction (July 10 to Oct 10) 17,013

Sales (July 10 to Oct 10) 16,622

Production (Oct 10) 4,827

Sales (Oct 10) 4,830

HONDA ATLAS CARProduction (July 10 to Oct 10) 5,481

Sales (July 10 to Oct 10) 5,172

Production (Oct 10) 1,514

Sales (Oct 10) 1,340

DEWAN FAROOQ MOTORSProduction (July 10 to Oct 10) 186

Sales (July 10 to Oct 10) 70

Production (Oct 10) 0

Sales (Oct 10) 18

BANKING SECTORScheduled bank (Rs in mn)Deposit (Nov 6,10) 4,729,932

Advances (Nov 6,10) 3,011,868

Investments (Nov 6,10) 1,897,426

Spread (Sep 10) 7.57%

OIL MARKETING CO(000 tons)MS (Jul 10 to Oct 10) 744

MS (Oct 10) 198

Kerosene (Jul 10 to Oct 10) 53

Kerosene (Oct 10) 15

JP (Jul 10 to Oct 10) 452

JP (Oct 10) 122

HSD (Jul 10 to Oct 10) 2,182

HSD (Oct 10) 664

LDO (Jul 10 to Oct 10)) 22

LDO (Oct 10) 6

Fuel Oil (Jul 10 to Oct 10) 3,086

Fuel Oil (Oct 10) 854

Others (Jul 10 to Oct 10) 3

Others (Oct 10) 1

PRICES (Ex-Refinery) RsMS (1 Nov 10) 44.53

MS (1 Oct 10) 40.71

MS % Chg 9.38%

Kerosene (1 Nov 10) 51.25

Kerosene (1 Oct 10) 47.31

Kerosene % Chg 8.33%

JP-1 (1 Nov 10) 51.48

JP-1 (1 Oct 10) 47.54

JP-1 % Chg 8.29%

HSD (1 Nov 10) 54.24

HSD (1 Oct 10) 50.38

HSD % Chg 7.66%

LDO (1 Nov 10) 49.51

LDO (1 Oct 10) 46.13

LDO % Chg 7.33%

Fuel Oil (1 Nov 10) 42,046

Fuel Oil (1 Oct 10) 39,276

Sector Updates

Symbol Close Vol (mn)JSCL 12.93 54.72LOTPTA 11.89 52.63NML 57.47 38.67ANL 11.14 24.25NBP 65.62 19.06

Symbol Close ChangeNESTLE 1,994.97 63.38ULEVER 4,133.00 56.67ILTM 114.84 20.34WYETH 870.00 20.00SRVI 229.59 18.50

Symbol Close ChangeRMPL 1,850.60 -66.62UPFL 1,035.50 -51.50BATA 600.35 -23.07PSEL 163.67 -8.46DREL 639.99 -8.01

Plus 245Minus 164Unchanged 17

Top 5 Volume Leaders

Major Losers

Major Gainers

KSE-100 Index

LSE-25 Index

ISE-10 Index

Active Issues

Monday, November 29, 2010 5

Dhiyan

The developments regarding the approval of RGST and monetary policy would setthe direction of market henceforth. If the interest rate is increased by 50bps then wemay see a little correction. However, strong bearish activities could be seen if it israised by 100bps. On the other hand, any negative development over RGST wouldhurt the market. Investors are advised to wait till things get settled down. Dips wouldbe an opportunity and they can take positions in oil & gas stocks and in selectivestocks of banking, cement, and fertiliser sectors. No change in interest rate could takethe market upwards while rise in international oil prices and continued foreign buy-ing would support the market as well. Today maybe a lackluster day.

Salman Naqvi, Head of Sales Aba Ali Habib Securities

Muhammad Ahsan Rasheed, Director Research & Marketing AMJ Growth

Market trend depends upon the the monetary policy statement while approval

of RGST could have a negative impact on it. It is better for the investors to

buy at dips in fertiliser and refinery sectors with stop loss and focus on dis-

counted scrips rather than index. Market has a strong support at 10,966 points

level. The launch of Margin Trading System (MTS) with its unproblematic

rules would be the only factor that could trigger the market in the coming

days. Market would show mixed activities today.

DIPS ARE YOURS

Opening 10,966.00Closing 11,145.02Change 179.02% Change 1.63Turnover (mn) 592.74

Opening 3,433.71Closing 3,473.52Change 39.81% Change 1.16Turnover (mn) 33.37

Opening 2,794.97Closing 2,854.89Change 59.92% Change 2.14Turnover (mn) 0.87

MADRID: People watch an electronic board displaying figures of Madrid's Stock Exchange.-Reuters

Weekly Review

NEW YORK: There is no signthat investors' headaches fromEurope are going away, but earlyindications of strong holidayspending and an improvinglabor market could soothe WallStreet this week.

Fears that Europe's debt crisiscould spiral out of control havepushed stocks off two-year highshit earlier this month. Since Nov.5, the S&P has fallen 3.1 percent after running up 17 per centover the two months before that.At Friday's close, the S&P 500was down 0.9 per cent for theweek, almost matching theDow's 1 per cent drop.

However, those fears havebeen countered by signs of agathering recovery in the labormarket at home. The govern-ment's nonfarm payrolls reporton Friday is set to be anothersign of a turnaround in hiringthat could boost stocks throughthe end of the year.

Anecdotal evidence suggestsholiday shopping got off to agood start. The S&P retail indexrose more than 5 per cent in therun up to "Black Friday," the dayafter Thanksgiving, whenAmericans traditionally takeshopping malls by storm.

Retail stocks' gains are a signof an increasingly bullish viewof the US consumer after a stringof stronger indicators on jobs,sentiment and spending.

"The consumer is more confi-dent and they are spending a bitmore money, and I think retail asa whole is perking up," saidGary Bradshaw, portfolio man-ager at Hodges CapitalManagement in Dallas, addingthat retail stocks "look relativelycheap to us, and I think sales aregoing to surprise to the upside."

Friday's payrolls report isexpected to show the economyadded 140,000 jobs inNovember, according to econo-mists polled by Reuters. If thatforecast is met, the jobs data willfit a pattern of growing strengthin the labor market.

In October, companies hired attheir fastest pace since April, thegovernment's payrolls datashowed, while the latest weeklyinitial claims for unemploymentbenefits have dropped to theirlowest in over two years.November consumer sentimentrose to the highest level sinceJune. October consumer spend-ing also gained.

Early anecdotal evidence fromBlack Friday suggested shop-pers were spending and that dis-counts were not as deep this yearas last, potentially helping to liftretailers' margins as they lookfor the best holiday season inthree years.

Black Friday marks the start ofthe holiday spending when USretailers traditionally turn a prof-it, or go into the black for theyear. The National RetailFederation said that nearly 60million Americans plan to hit thestores over the weekend, whileanother 78 million might join thecrowds of shoppers. The NRFwill provide an update onSunday.

Retailers on the front lines willpublish same-store sales data onThursday when they will likelycomment on the weekend'sevents. "It seems the Americanconsumer is back with avengeance," said Kim CaugheyForrest, senior equity researchanalyst at Fort Pitt CapitalGroup in Pittsburgh. "If we areto believe CEOs of retailers,they feel they can support mar-gins with prices that are attract-ing consumers."

Shares of Amazon.com, afavorite online retailer, have runup 12 per cent since mid-November, and hit an all-timehigh of $177.25 mid-week.

Europe's debt crisis could bethe fly in the ointment, though.Pundits predicting the euro'sdemise are getting serious atten-tion.

European CommissionPresident Jose Manuel Barrosodenied on Friday that a financial

rescue plan was in the works forPortugal and called a newspa-per's report that Portugal wasunder pressure to seek a bailout"absolutely false," while Spainsaid it did not need help to man-age its finances. But the marketwas less sanguine and stockstook a nose dive.

Kate Schapiro, who runs aninternational equity fund out ofSan Francisco, said the declinesin European stocks last weekhad looked "really, really ugly."

Her fund owns the New York-listed stock of Spain's BancoSantander, which has fallen 15per cent last week.

Schapiro says Santander andother European stocks may begetting hit too hard and thatstrong companies are gettingcaught up in the general selling.

"At the end of the day," shesaid, "I think we are going tomuddle through this, and thiscould be a buying opportunity --that's my gut" feeling, she added.

Periods of decline inNovember have worked off theS&P 500's overbought condi-tion. The index has been findingsupport at around 1,180 andresistance at 1,200. That mayserve as a short-term tradingrange.

Manny Weintraub, presidentof Integre Advisors in NewYork, said low volume is likelyto mark trading in the near term,keeping stocks in their recentrange. "We're entering a periodwith a lot of days of very weakvolume," he said.

Bullish sentiment has been onthe rise again, a factor that mayworry contrarian investors whosee bullishness as a "sell" signal.

Bullish sentiment rose 7.4 per-centage points to 47.4 per cent,according to the latest sentimentsurvey by the AmericanAssociation of IndividualInvestors. Bullish sentiment hasnow spent 12 consecutive weeksabove its historical average of 39per cent despite some drops inNovember. -Reuters

Big holiday spending,jobs could help Wall St

Wall Street weekly outlook

Nawaz Ali

KARACHI: Karachi StockExchange (KSE) saw a bull-ish/bearish week but endedabove 11,000 points as after athumping start cagey investorsquitted buying and bookedprofits ahead of SBPMonetary Policy Statement --which is due today (Monday).

The benchmark KSE 100-Index increased by 179 points-1.63 per cent-- to close at11,145 points. It touched aweek-high of 11,262 points.

KSE 30-Index jumped by151 points - 1.43 per cent-- toclose at 10,748 points andKSE All Share Index grew by121 points -1.6 per cent-- toclose at 7,750 points.

After Eid holidays, marketstarted the week with a majorbull-run on Monday wheredue to heavy buying by theforeign investors index gained239 points to close above11,000 level after a period ofabout 28 months.

"Riding the wave of lastweek's bull-run, index brokethrough the 11,000 points'psychological barrier in thefirst trading session, withmainly oil sector scrips domi-nating the rally", said SanaHanif, analyst at JS GlobalCapital.

According to experts, thenews of a rise in Qadirpur GasFiled production after theinstallation of most of thecompressors invited buying inthe oil giant OGDC while dis-covery in Makori East previ-ous week also drove investorstowards POL and PPL.

Further, a hike in power tar-iff as well pushed investorsinto oil stocks while newsregarding OGDC-PPL joint

bidding for BP's Pakistanstake too piqued investors'interest.

But the momentum fizzledout henceforth. Thus marketsaw some dull activities end-ing negative at the end ofthree out of four trading daysas investors preferred to bookprofits following fears of risein interest rate. In addition tothat decline in regional stockmarkets did some damagetoo.

The monetary policy is dueto be announced on Nov 29(Today) for the next twomonths and there are expecta-tions that the key policy rateswould be increased by 50basis points.

Further, the tussle betweenthe political parties onReformed General Sales Tax(RGST) and uncertainty overthe release of nextInternational Monetary Fund(IMF) tranche too affectedinvestors' sentiments.

Foreigners stayed mainly onthe buying side where accord-ing to NCCPL data they net-bought equities worth $12.5million during the last weekwhile local funds did a net-selling of $6.1 million.

Investor participation wit-nessed a significant improve-ment as 592.7 million sharestraded during the week.However volumes were lowerduring the last two days.

Last week, average dailyturnover stood at 118 millionshares --about 49 millionmore as compared to an aver-age volume of 69 million aweek earlier.

Out of total 426 activeissues 245 advanced and 164declined while 17 issuesremained unchanged.

KSE winsweeklongbull-beartug-of-war

Gulf stocks mkt

Dubai hits10-wk low,Abu Dhabidown under

DUBAI: Dubai's index toucheda 10 week low amid falling vol-umes, as uncertainties in globalmarkets kept most investors onthe sidelines.

The benchmark dropped 1.4per cent, closing at 1,660 points,its lowest close since Sept 16.

Dubai builder Arabtec wasone of the biggest losers, drop-ping 2.2 per cent to its lowestclose since Sept 6. Courier firmAramex lost 4.3 per cent.

"Very low volumes are tradedas investors are worried aboutthe performance of internation-al markets," said Rami Sidani,head of investment atSchroders Middle East.

"The fall in UAE stocks is areflection of what is happeningin global markets," he added.

Developer Aldar Propertiesled the decline in Abu Dhabi asit drops 2.7 per cent. The indexended lower by 0.3 per cent at2,750 points.

Telecoms operator Zain wasthe main drag as Kuwait'sindex slumped to a two monthclosing low. Zain dropped 1.4per cent, having earlier slippedto a one week intraday low.

HSBC pulled out of thearranging group for Zain's pro-posed $1.5bn loan, leaving sixbanks to arrange the financing,sources said on Friday.

The benchmark fell 0.9 percent ending at 6,869 points, itslowest finish since Sept 28.

Qatar's dropped 0.8 per centat 8,111 points, a two week low,as losers outnumbered gainers18 to zero. Doha Bank fell 1.4per cent and Commercial Bankof Qatar slid 1.5 per cent.

Oman's Bank Muscat climbedto its highest level in more thantwo years as gains in its Londonlisted global depository receipts(GDR) spurred foreigninvestors to buy the lender'sshares on the local bourse.

Bank Muscat rose three percent, touching its highest sinceSeptember 2008.

"Bank Muscat is rising pri-marily because of the GDRprices," said Adel Nasr, UnitedSecurities brokerage manager.

"However, I do not expect it togo much higher," he added. TheOman index gained 0.5 per cent,reaching 6,582 points. -Agencies

Dubai may consider selling parts of major companies

GM IPO now world's biggest; signof healthy demand for automaker

Monday, November 29, 20106

Volume 592,739,896

Value 26,724,925,229

Trades 351,001

Advanced 245

Declined 164

Unchanged 17

Total 426

Current 7,750.01

High 7,830.50

Low 7,628.24

Change h121.77

Current 11,145.02

High 11,262.60

Low 10,966.00

Change h179.02

Current 10,748.30

High 10,894.06

Low 10,596.46

Change h151.84

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

Technical AnalysisFundamental Highlights

As on Jun 30, 2010

NCL closed up 0.20 at 24.04. Volume was 1 per cent below

average and Bollinger Bands were 40 per cent wider than nor-

mal. The company's profit after taxation stood at Rs477.454

million which translates into an Earning Per Share of Rs3.01

for the 1st quarter of current fiscal year (1QFY11).

NCL is currently 28.4 per cent above its 200-day moving aver-

age and is displaying an upward trend. Volatility is high as

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

sions. Volume indicators reflect moderate flows of volume into

NCL (mildly bullish). Trend forecasting oscillators are currently

bullish on NCL.

RSI (14-day) 63.95 Total Assets (Rs in mn) 14,251.88

MA (10-day) 23.87 Total Equity (Rs in mn) 4,432.51

MA (100-day) 18.37 Revenue (Rs in mn) 13,343.54

MA (200-day) 18.73 Interest Expense 1,101.05

1st Support 23.82 Profit after Taxation 931.47

2nd Support 23.62 EPS 10 (Rs) 7.890

1st Resistance 24.35 Book value / share (Rs) 26.79

2nd Resistance 24.68 PE 11 E (x) 2.00

Pivot 24.15 PBV (x) 0.90

Technical AnalysisFundamental Highlights

As on Jun 30, 2010

PIOC closed down -0.81 at 6.98. Volume was 6,468 per

cent above average (trending) and Bollinger Bands were

19 per cent wider than normal. The company's loss after

taxation stood at Rs86.285 million which translates into a

Loss Per Share of Rs0.39 for the 1st quarter of current fis-

cal year (1QFY11).

PIOC is currently 16.6 per cent below its 200-day moving

average and is displaying a downward trend. Volatility is

relatively normal as compared to the average volatility

over the last 10 trading sessions. Volume indicators reflect

very strong flows of volume out of PIOC (bearish). Trend

forecasting oscillators are currently bearish on PIOC.

RSI (14-day) 35.82 Total Assets (Rs in mn) 10,325.49

MA (10-day) 7.48 Total Equity (Rs in mn) 2,218.22

MA (100-day) 7.53 Revenue (Rs in mn) 3,872.83

MA (200-day) 8.37 Interest Expense 392.66

1st Support 6.35 Loss after Taxation (590.93)

2nd Support 5.66 EPS 10 (Rs) (2.870)

1st Resistance 7.94 Book value / share (Rs) 9.96

2nd Resistance 8.84 PE 11 E (x) -

Pivot 7.25 PBV (x) 0.70

Technical AnalysisFundamental Highlights

As on Jun 30, 2009

TRG closed down -0.04 at 4.25. Volume was 110 per cent

above average and Bollinger Bands were 55 per cent narrow-

er than normal. The company's loss after taxation stood at

Rs1.398 million which translates into a Loss Per Share of

Rs0.004 for the 1st quarter of current fiscal year (1QFY11).

TRG is currently 2.0 per cent above its 200-day moving aver-

age and is displaying a downward trend. Volatility is low as

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

sions. Volume indicators reflect moderate flows of volume into

TRG (mildly bullish). Trend forecasting oscillators are current-

ly bearish on TRG.

RSI (14-day) 53.60 Total Assets (Rs in mn) 2,549.61

MA (10-day) 4.27 Total Equity (Rs in mn) 2,509.06

MA (100-day) 3.96 Revenue (Rs in mn) 28.92

MA (200-day) 4.18 Interest Expense 0.10

1st Support 4.10 Profit after Taxation 766.33

2nd Support 3.95 EPS 09 (Rs) 1.988

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

2nd Resistance 4.55 PE 10 E (x) -

Pivot 4.25 PBV (x) 0.65

Technical AnalysisFundamental Highlights

As on Jun 30, 2010

KESC closed down -0.10 at 2.18. Volume was 50 per cent

below average (consolidating) and Bollinger Bands were 21

per cent narrower than normal. The company's loss after taxa-

tion stood at Rs1.782 billion which translates into a Loss Per

Share of Rs0.09 for the 1st quarter of current fiscal year

(1QFY11).

KESC is currently 12.7 per cent below 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 volume

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

forecasting oscillators are currently bullish on KESC.

RSI (14-day) 50.61 Total Assets (Rs in mn) 207,629.50

MA (10-day) 2.21 Total Equity (Rs in mn) (525.11)

MA (100-day) 2.18 Revenue (Rs in mn) 70,508.12

MA (200-day) 2.50 Interest Expense 6,823.64

1st Support 2.13 Loss after Taxation (14,641.22)

2nd Support 2.09 EPS 10 (Rs) (0.740)

1st Resistance 2.24 Book value / share (Rs) (0.02)

2nd Resistance 2.31 PE 11 E (x) -

Pivot 2.20 PBV (x) (88.92)

Performance of SR Oil and Gas Index

Open High Low Close Change % Change

1,419.29 1,484.08 1,416.83 1,455.22 35.92 2.53

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

46,672,710 - - 65,194.15 mn 1,140,059.82 mn -

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

10.76 3.50 32.54 55.94 5.20 -

Attock Petroleum 691 5.51 307.51 325.35 308.00 318.37 10.86 3629992 374.20 287.99 250 - 300 20

Attock Refinery 853 7.12 127.23 129.40 123.50 127.10 -0.13 11941631 129.70 76.20 - - - -

Mari Gas Company 735 16.20 119.62 125.39 119.25 119.59 -0.03 418949 128.90 106.00 32.17 100B 31 -

National Refinery 800 3.86 265.35 273.00 260.25 260.71 -4.64 619379 273.00 189.08 125 - 200 -

Oil & Gas Development 43009 11.05 159.49 167.00 159.11 163.34 3.85 3361396 167.00 136.60 82.5 - 55 -

Pak Petroleum 11950 8.22 193.72 205.00 193.18 202.09 8.37 6235520 214.10 168.70 130 20B 90 20B

Pak Oilfields XD 2365 6.26 255.59 272.25 255.50 265.25 9.66 14897217 272.25 214.75 180 - 255 -

Pak Refinery Limited 350 - 82.81 83.58 81.13 81.74 -1.07 51701 87.39 48.26 - - - -

P.S.O 1715 4.79 283.22 292.15 282.50 283.27 0.05 5836394 292.15 233.10 50 - 80 -

Shell Gas LPG 226 - 37.50 38.50 35.10 37.96 0.46 57853 40.28 27.32 - - - -

Shell Pakistan 685 10.33 197.81 204.00 197.51 201.34 3.53 102773 204.00 182.05 330 - 40 -

Paid up Last 60 days 2009 2010

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

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

Performance of SR Personal Goods Index

Open High Low Close Change % Change

959.06 981.46 956.43 967.34 8.28 0.86

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

88,032,927 - - 47,070.70 mn 126,794.23 mn -

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

6.21 0.54 8.64 16.68 2.69 -

AL-Qadir Textile XD 76 - 6.86 7.05 5.26 6.28 -0.58 7229 7.05 2.50 - - 10 -

Amtex Limited XD 2415 10.91 4.60 5.28 4.66 4.80 0.20 6146524 19.24 4.40 - - 30 -

Artistic Denim 840 5.53 20.16 21.29 19.85 19.90 -0.26 19849 24.05 17.55 20 - 20 -

Azam Textile XD 133 0.31 2.49 2.90 1.45 2.25 -0.24 9083 3.45 1.35 - - 7.5 -

Azgard Nine 4493 - 11.05 12.17 10.87 11.14 0.09 24246176 12.32 8.80 - - - -

Bannu Woolen XD 76 0.48 13.10 13.70 12.60 13.70 0.60 19624 14.50 7.50 - - 20 -

Bata (Pak) 76 4.98 623.42 649.00 590.00 600.35-23.07 10266 747.48 436.00 120 - - -

Chakwal Spinning XD 400 0.50 1.37 1.95 0.90 1.13 -0.24 11300 2.59 0.56 - - 5 -

Chenab Limited 1150 - 3.32 3.54 3.13 3.20 -0.12 132254 3.95 3.00 - - - -

Colony Mills Ltd 2442 3.81 2.65 2.84 2.41 2.44 -0.21 77850 3.45 2.23 - - - -

Crescent Jute 238 - 0.75 1.34 0.52 0.85 0.10 27837 1.90 0.16 - - - -

D S Ind Ltd 600 - 1.94 2.05 1.82 1.84 -0.10 115410 2.37 1.44 - - - -

Dawood Lawrencepur 514 45.38 38.99 42.94 37.50 38.57 -0.42 106518 44.50 36.10 - - 5 -

Ellcot Spinning 110 0.58 18.65 20.99 19.00 19.16 0.51 28094 25.45 17.21 7.5 - 35 -

Gadoon Textile XD 234 0.52 50.45 52.50 47.25 47.44 -3.01 22439 52.50 33.80 - - 70 -

Gulistan Spinning XD 146 1.59 5.40 8.34 5.70 8.34 2.94 12016 8.34 5.00 - 10B 10 -

Gulshan SpinningXDXB 222 0.87 7.79 8.50 7.00 7.15 -0.64 8816 10.30 5.51 - 10B 10 20B

Hira Textile Mills Limited716 0.72 4.09 4.19 3.35 3.85 -0.24 549294 4.88 3.35 - - 10 -

Ibrahim Fibres 3105 3.03 36.95 39.00 36.26 38.49 1.54 29389 40.30 34.05 - - 20 -

Ideal Spinning 99 0.30 3.48 4.25 3.15 3.50 0.02 21149 4.79 2.02 - - - -

Idrees Textile XD 180 3.15 3.20 3.25 2.90 2.90 -0.30 12318 5.35 2.60 - - 10 -

Janana D Mal 43 0.23 15.20 16.25 13.52 14.21 -0.99 8515 20.50 9.95 - - - -

Kohinoor Ind 303 - 1.42 1.73 1.41 1.54 0.12 62488 1.93 1.01 - - - -

Kohinoor Textile 1455 4.18 5.59 5.89 5.21 5.85 0.26 163031 6.30 4.51 - - - -

Leather Up 60 2.38 2.00 3.00 1.55 2.00 0.00 10503 3.00 1.10 - - - -

Masood Textile XD 600 2.01 18.54 20.00 19.00 19.02 0.48 8563 22.75 18.01 15 - 15 100R

Mian Textile 221 - 0.40 0.75 0.39 0.45 0.05 124864 0.98 0.01 - - - -

Mohd Farooq 189 - 0.80 1.25 0.66 0.81 0.01 37479 1.64 0.35 - - - -

Mukhtar Textile 145 - 0.30 0.64 0.31 0.45 0.15 158032 0.97 0.16 - - - -

Nagina Cotton 187 0.77 15.39 15.49 14.75 15.10 -0.29 5005 17.50 12.00 - - 20SD -

Nishat (Chunian) XD 1586 2.00 23.84 25.14 23.43 24.04 0.20 14835945 25.14 15.25 - 50R 15 -

Nishat Mills XD 3516 4.93 54.31 58.99 54.45 57.47 3.16 38671745 58.99 40.81 20 - 25 45R

Pak Synthetic 560 2.15 6.51 6.80 6.21 6.36 -0.15 20716 7.48 5.16 12.5 - - -

Prosperity 185 1.14 14.49 14.98 13.30 14.88 0.39 8495 21.47 12.51 20 - 30 -

Ravi Textile 250 - 1.51 1.58 1.42 1.52 0.01 140488 2.38 1.38 - - - -

Reliance Cotton XD 103 0.60 33.50 34.00 33.00 34.00 0.50 100046 34.00 21.38 - - 20 -

Reliance Weaving 308 0.64 9.50 10.34 8.50 9.23 -0.27 135165 12.00 8.01 - - 25SD -

Rupali Poly 341 4.57 34.70 37.25 34.70 36.40 1.70 5066 37.25 31.25 40 - 40 -

Saif Textile 264 0.47 5.25 6.25 4.50 5.90 0.65 10694 6.49 2.01 - - - -

Salfi Textile 33 0.23 48.12 50.52 44.50 50.41 2.29 5728 50.52 20.50 - - 25 -

Samin Textile 134 5.00 6.39 6.00 5.50 6.00 -0.39 8802 8.69 5.02 - - - 100R

Sana Ind 55 2.73 32.61 35.99 32.74 35.99 3.38 51225 38.40 27.50 35 - 60 -

Saritow Spinning 133 0.46 2.65 2.82 2.15 2.82 0.17 7773 2.99 1.10 - - - -

Service Ind 120 7.86 211.09 235.51 211.10 229.59 18.50 178438 255.29 169.00 200 - - -

Shahtaj Textile XD 97 - 17.69 17.50 17.10 17.35 -0.34 6691 21.90 15.61 20 - 45 -

Suraj Cotton 180 0.79 33.48 35.89 33.00 35.00 1.52 47788 37.50 29.00 15 - 50 -

Tata Textile 173 0.30 32.80 35.50 30.00 30.48 -2.32 6093 35.50 15.00 - - 25 -

Thal Limited 307 4.23 97.37 102.49 97.26 99.05 1.68 527122 112.80 86.50 20 20B 80 20B

Treet Corp 418 8.59 51.86 55.20 52.02 53.93 2.07 944307 55.25 37.20 - - - -

Yousuf Weaving 400 0.45 1.11 1.75 1.11 1.30 0.19 5005 1.80 0.73 - - - -

Paid up Last 60 days 2009 2010

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

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

Performance of SR Household Goods Index

Open High Low Close Change % Change

1,079.37 1,110.94 1,076.44 1,090.21 10.83 1.00

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

1,911,393 - - 3,763.71 mn 5,109.63 mn -

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

2.50 0.27 10.64 6.27 2.51 -

Pak Elektron 1174 3.57 13.76 14.75 13.70 14.16 0.40 1744050 15.43 12.82 - 10B - 10B

Tariq Glass Ind 231 1.96 16.90 17.15 15.90 16.39 -0.51 161208 18.80 14.50 - - 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

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

Performance of SR Food Producers Index

Open High Low Close Change % Change

1,521.86 1,608.68 1,502.89 1,554.54 32.68 2.15

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

1,131,674 - - 11,335.33 mn 199,959.52 mn -

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

33.34 10.10 30.30 30.57 0.92 -

AL-Abbas Sugar 174 7.79 94.43 95.00 91.00 94.99 0.56 5052 98.10 76.95 40 - - -

AL-Noor Sugar 186 5.08 50.00 52.00 48.05 50.00 0.00 64596 52.00 39.25 40 - - -

Ansari Sugar 244 0.24 5.00 5.60 5.00 5.07 0.07 6500 6.00 4.03 - - - -

Bawany Sugar 87 - 1.40 3.17 1.50 2.42 1.02 10422 3.17 0.85 - - - -

Chashma Sugar 287 1.08 13.87 15.47 12.50 13.35 -0.52 75113 15.47 8.50 - - - -

Crescent Sugar 214 10.38 6.48 6.45 5.50 5.50 -0.98 59000 6.98 5.50 - - - -

Dewan Sugar 365 - 1.75 2.17 1.60 1.82 0.07 46373 2.17 1.11 - - - -

Habib Sugar 600 6.91 34.60 35.24 33.51 33.53 -1.07 258337 36.00 25.85 35 25B - -

Habib-ADM Ltd 200 11.56 12.50 12.80 12.00 12.49 -0.01 17828 16.98 11.90 40 - 40 -

J D WSugar 490 2.65 78.90 80.00 76.66 79.25 0.35 8932 81.95 60.10 40 - 0 12.5R

Mehran Sugar 143 3.45 59.50 64.00 57.25 61.60 2.10 77778 64.00 48.50 35 30B 25 10B

Mirpurkhas Sugar 70 6.12 59.50 61.99 53.64 58.19 -1.31 9066 62.77 53.64 25 10B - -

Mirza Sugar 141 0.40 5.93 6.48 5.60 6.39 0.46 11148 6.48 4.20 - - - -

National Foods 414 16.12 43.25 46.00 42.75 43.20 -0.05 17632 57.00 39.01 - 25B 12 -

Noon Pakistan XD 48 3.71 23.33 27.30 24.40 26.00 2.67 13128 27.30 17.51 - 10B 12 -

Noon Sugar 165 - 14.69 14.84 12.31 12.44 -2.25 15378 14.84 10.20 50 10B - -

Pangrio Sugar 109 0.46 5.91 6.50 5.00 5.65 -0.26 28069 6.50 4.00 - - - -

Premier Sugar 38 8.12 42.99 48.00 42.00 44.28 1.29 25875 48.00 32.50 30 - - -

Punjab Oil 38 2.95 39.33 39.33 39.33 39.33 0.00 60000 39.33 32.80 15 25B 15 28R

Quice Food 107 - 2.06 2.45 2.06 2.10 0.04 12000 3.40 1.60 - - - -

S S Oil 57 0.32 3.50 3.70 3.06 3.70 0.20 12000 3.89 2.51 - - - -

Sakrand Sugar 223 - 3.00 3.30 2.11 2.32 -0.68 21500 3.50 2.11 - - - -

Sanghar Sugar 119 0.95 13.92 13.99 13.25 13.25 -0.67 26213 14.90 12.90 10 - - -

Shahmurad Sugar 211 18.32 12.60 13.20 12.41 12.64 0.04 21293 13.20 8.25 15 - - -

Shakarganj Mills 695 - 5.48 7.24 4.75 6.55 1.07 182172 7.24 3.21 - - - -

Tandlianwala 1177 286.45 32.90 34.00 31.50 31.51 -1.39 16905 35.50 27.50 - - - -

Paid up Last 60 days 2009 2010

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

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

Performance of SR Automobile and Parts Index

Open High Low Close Change % Change

1,187.25 1,234.60 1,175.00 1,182.56 -4.69 -0.40

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

1,351,451 - - 6,768.53 mn 42,617.63 mn -

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

4.43 1.12 25.35 20.42 4.61 -

Agriautos Ind 144 5.30 68.00 70.50 67.99 70.00 2.00 47349 72.99 63.01 40 - 90 -

Atlas Battery 101 4.71 156.07 163.83 155.80 157.80 1.73 56501 194.25 131.00 100 20B 100 20B

Atlas Honda 626 7.54 99.21 104.89 96.90 104.00 4.79 11629 122.51 92.00 80 30B - -

Dewan Motors 890 - 1.49 1.50 1.40 1.42 -0.07 342662 1.80 1.16 - - - -

General Tyre 598 18.97 21.08 22.99 21.10 22.00 0.92 112675 26.70 21.00 - - 20 -

Ghandhara Nissan 450 3.35 4.90 5.15 4.70 4.83 -0.07 65887 6.09 4.03 - - - -

Honda Atlas Cars 1428 - 12.60 13.00 12.15 12.16 -0.44 112120 13.40 9.65 - - - -

Indus Motors 786 6.06 270.62 282.45 264.00 265.50 -5.12 307110 282.45 212.29 100 - 150 -

Pak Suzuki 823 11.66 74.06 77.90 73.00 73.25 -0.81 282894 79.50 69.25 5 - - -

Sazgar Engineering 150 3.61 19.13 20.46 19.14 19.33 0.20 40850 27.58 17.92 - 20B 10 20B

Transmission 117 - 1.94 2.23 1.70 2.00 0.06 10114 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

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

Performance of SR Industrial Engineering Index

Open High Low Close Change % Change

1,518.71 1,570.74 1,516.82 1,542.30 23.59 1.55

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

911,953 - - 1,336.62 mn 32,187.65 mn -

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

7.62 2.90 38.02 131.49 17.25 -

AL-Ghazi Tractor 215 5.07 207.97 215.48 207.50 211.64 3.67 40366 227.45 200.00 400 - 150 -

Bolan Casting 104 - 44.95 46.65 44.70 44.70 -0.25 9644 51.99 40.30 - 20B 25 10B

Ghandhara Ind 213 10.21 10.99 11.71 10.90 11.03 0.04 54780 18.80 10.55 - - - -

Hinopak Motor 124 - 131.99 147.89 128.25 133.50 1.51 22782 147.89 108.11 17.15 - - -

Millat Tractors XB 366 6.46 484.42 504.45 484.00 494.18 9.76 782003 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

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

Performance of SR General Industrials Index

Open High Low Close Change % Change

938.95 974.77 939.16 951.68 12.73 1.36

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

1,005,119 - - 3,043.31 mn 35,424.85 mn -

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

2.72 1.20 43.91 15.55 5.71 -

Cherat Papersack 115 2.32 56.47 68.00 57.25 65.01 8.54 496473 68.00 34.00 - - 20 25B

ECOPACK Ltd 230 - 2.09 2.38 1.82 2.17 0.08 30650 2.64 1.70 - - - -

Ghani Glass 1067 4.55 48.78 49.94 48.25 49.49 0.71 18074 61.99 45.75 30 10B 25 10B

Packages Ltd 844 53.94 104.96 108.10 104.70 105.18 0.22 317109 113.00 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

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

Performance of SR Construction and Materials Index

Open High Low Close Change % Change

999.83 1,029.15 977.48 993.08 -6.75 -0.67

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

42,993,311 - - 54,792.74 mn 71,409.13 mn -

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

7.04 0.50 7.10 19.04 2.70 -

Al-Abbas Cement 1828 - 3.25 3.45 3.20 3.25 0.00 108328 4.20 2.80 - - - 100R

Attock Cement 866 6.78 62.92 65.99 61.80 64.44 1.52 718640 69.86 57.60 50 20B 50 -

Balochistan Glass Ltd 858 - 1.72 1.84 1.10 1.53 -0.19 37705 2.05 1.01 - - - -

Berger Paints 182 - 17.61 20.10 17.66 19.03 1.42 214436 20.10 14.01 - - - 122R

Cherat Cement 956 26.82 12.08 12.59 11.77 11.80 -0.28 237899 12.75 9.51 - - - -

Dadabhoy Cement 982 12.69 1.60 1.90 1.50 1.65 0.05 69592 2.20 1.30 - - - -

Dewan Cement 3574 - 1.67 1.90 1.62 1.69 0.02 1601839 1.99 1.30 - - - -

DG Khan Cement Ltd 3651 117.00 28.99 29.54 27.90 28.08 -0.91 13334849 31.05 23.02 - 20R - 20R

Fauji Cement 6933 15.15 5.04 5.14 4.95 5.00 -0.04 2313041 5.50 4.52 - - - -

Fecto Cement 502 4.14 7.35 8.00 7.10 7.94 0.59 12129 8.20 4.25 - 10B - -

Flying Cement Ltd 1760 - 1.83 1.94 1.70 1.80 -0.03 121376 2.20 1.70 - - - -

Frontier Ceramics 77 - 2.49 3.00 1.75 2.19 -0.30 55586 5.00 1.18 - - - -

Gharibwal Cement 2319 - 3.09 5.89 3.22 5.70 2.61 272924 6.25 2.11 - - - -

Haydery Const 32 - 0.70 0.70 0.42 0.51 -0.19 72819 1.48 0.25 - - - -

Kohat Cement 1288 - 7.02 8.70 6.89 7.08 0.06 1930190 8.70 5.50 - - - -

Lucky Cement 3234 6.67 73.72 76.80 73.76 74.24 0.52 6218282 79.98 65.20 40 - 40 -

Maple Leaf Cement 5261 1.34 2.90 3.02 2.87 2.89 -0.01 1066837 3.40 2.51 - - - -

Maple Leaf(Pref) 541 4.41 6.95 8.74 5.75 6.00 -0.95 14574 8.89 3.51 9.75 - - -

Pioneer Cement 2228 - 7.79 8.15 6.56 6.98 -0.81 11243301 8.58 6.56 - - - -

Safe Mix Concrete 200 - 5.52 6.00 5.30 5.94 0.42 38604 9.47 5.25 - - - -

Paid up Last 60 days 2009 2010

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

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

Performance of SR Industrial Metals and Mining Index

Open High Low Close Change % Change

929.07 1,005.32 922.68 974.09 45.02 4.85

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

1,187,260 - - 3,596.11 mn 9,530.65 mn -

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

3.09 1.02 33.10 30.91 10.00 -

Crescent Steel 565 3.89 25.00 25.79 24.60 24.90 -0.10 157916 26.00 23.75 - - 30 -

Dost Steels Ltd 675 - 2.94 3.11 2.82 2.95 0.01 165641 3.39 1.65 - - - -

Huffaz Pipe 555 9.30 14.93 15.35 14.50 14.88 -0.05 295744 16.75 12.25 - 30B - -

International Ind 1199 10.73 46.20 53.99 46.26 51.48 5.28 564805 64.02 44.00 - - 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

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

Performance of SR Forestry & Paper Index

Open High Low Close Change % Change

1,084.90 1,097.67 1,063.87 1,065.20 -19.70 -1.82

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

95,517 - - 1,186.83 mn 2,951.81 mn -

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

5.49 0.41 7.47 25.28 4.60 -

Century Paper 707 - 16.75 17.15 15.80 15.85 -0.90 77835 21.80 15.28 - 425R - -

Security Paper 411 6.10 39.18 40.00 38.50 39.50 0.32 15355 41.50 38.00 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

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

Performance of SR Chemicals Index

Open High Low Close Change % Change

1,240.34 1,273.86 1,237.30 1,257.60 17.26 1.39

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

87,529,479 - - 52,251.88 mn 279,337.47 mn -

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

7.87 2.76 35.00 48.81 6.20 -

Bawany Air 68 74.58 8.49 9.84 7.92 8.95 0.46 15563 13.99 7.73 - - 5 10R

BOC (Pak) 250 11.23 78.75 82.00 77.55 81.79 3.04 27662 87.99 66.90 90 - 15 -

Clariant Pak 273 5.89 152.92 156.90 152.00 154.00 1.08 39980 164.89 149.72 125 - - -

Dawood HerculesSPOT 1203 7.18 169.04 185.00 166.51 173.20 4.16 355240 185.00 157.01 40 10B 40 -

Dewan Salman 3663 - 1.62 1.74 1.52 1.53 -0.09 704303 1.82 1.28 - - - -

Dynea Pak 94 - 10.20 10.89 9.15 10.79 0.59 6582 13.79 9.15 15 - 15 -

Engro Corporation Ltd 3277 10.03 181.76 186.74 181.50 182.57 0.81 8583238 186.74 165.60 6010B 40R 40 -

Fatima Fertilizer 22000 - 9.74 10.01 9.62 9.79 0.05 2717230 11.74 9.11 - - - -

Fauji Fertilizer XD 6785 8.08 109.08 112.60 109.00 111.54 2.46 6697399 112.60 102.96 131.5 10B 95 -

Fauji Fert. Bin Qasim 9341 6.40 33.72 34.60 33.80 33.90 0.18 11365455 34.60 26.59 40 - 17.5 -

ICI Pakistan 1388 7.61 133.77 138.50 134.01 135.02 1.25 1111376 138.50 116.00 80 - 55 -

Lotte Pakistan 15142 4.25 11.94 12.19 11.70 11.89 -0.05 52634921 12.19 7.85 5 - - -

Mandviwala 74 - 1.67 1.83 1.41 1.64 -0.03 979750 3.00 0.80 - - - -

Nimir Ind Chemical 1106 - 1.49 1.55 1.45 1.49 0.00 369837 1.65 1.16 - - - -

Shaffi Chemical 120 - 2.50 2.80 2.10 2.45 -0.05 11335 3.40 1.80 - - - -

Sitara Chem Ind XDXB 214 9.88 118.04 123.90 115.05 120.49 2.45 21384 127.20 101.00 75 - 25 5B

Sitara Peroxide 551 14.70 14.29 14.69 13.38 13.52 -0.77 955518 14.69 7.67 - - - -

Wah-Noble XD 90 6.50 32.99 34.19 32.22 33.79 0.80 11026 46.25 32.00 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

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

Performance of SR Pharma and Bio Tech Index

Open High Low Close Change % Change

876.89 897.68 870.71 882.69 5.80 0.66

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

314,522 - - 3,904.20 mn 29,448.07 mn -

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

6.93 1.55 22.31 44.54 6.42 -

Abbott (Lab) 979 8.67 98.20 101.99 98.60 98.87 0.67 33508 104.00 78.00 120 - 20 -

Ferozsons (Lab) 250 6.27 86.00 86.90 82.50 83.08 -2.92 11876 124.00 82.20 10 20B - 20B

GlaxoSmithKline 1707 13.16 71.10 73.89 70.13 73.17 2.07 108256 75.99 65.00 50 - - -

Highnoon (Lab) 165 6.97 24.40 25.68 24.15 25.17 0.77 64982 25.68 22.60 25 - - -

Searle Pak 306 5.52 62.83 64.00 61.00 61.40 -1.43 83481 64.50 57.00 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

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

Performance of SR Industrial Transportation Index

Open High Low Close Change % Change

746.59 756.36 726.31 736.26 -10.33 -1.38

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

131,534 - - 3,242.17 mn 12,733.62 mn -

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

5.53 1.41 25.53 11.08 2.00 -

Pak Int Container Terminal 1092 7.21 72.22 73.00 71.06 72.06 -0.16 64603 78.20 60.05 - 20B 40 -

PNSC 1321 37.98 37.10 37.94 34.00 34.94 -2.16 66931 41.00 34.00 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

Punjab Oil Mills # 30-Nov 06-Dec - - 06-Dec

East West Insurance Co. 1-Dec 7-Dec 10(B) 23-Nov -

Dawood Hercules Chemicals # 2-Dec 8-Dec - - 8-Dec

Askari Gen. Insurance 2-Dec 8-Dec 25(R) 24-Nov -

MCB Bank 3-Dec 10-Dec 30(iii) 25-Nov -

Dawood Hercules Chemicals 7-Dec 13-Dec 20(ii) 29-Nov -

Pakistan Premier Fund 7-Dec 14-Dec - - 14-Dec

Engro Corporation (Standalone 7-Dec 21-Dec 20(ii) 29-Nov -

Fauji Fertilizer Bin Qasim 14-Dec 20-Dec 12.50(iii) 06-Dec -

Oil and Gas Development Co 14-Dec 21-Dec 15(i) 06-Dec -

Siemens Pakistan 20-Dec 29-Dec 600 08-Dec 29-Dec

INDICATIONS

# Extraordinary General Meeting

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

Monday, November 29, 20107

Technical Analysis Leverage Position

Technical Outlook

KSE 100 INDEX closed up 179.02 points at 11,145.02. Volume was 12 per

cent below average and Bollinger Bands were 12 per cent wider than nor-

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

resistance level at 11,182.55 and 2nd resistance level at 11,220.10, while

Index will continue to find its 1st support level at 11,120.95 and 2nd sup-

port level at 11,096.90.

KSE 100 INDEX is currently 10.4 per cent above its 200-day moving average

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

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

reflect moderate flows of volume into 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) 71.74 Support 1 11,120.95

MA (5-day) 11,162.42 Support 2 11,096.90

MA (10-day) 11,040.90 Resistance 1 11,182.55

MA (100-day) 10,220.86 Resistance 2 11,220.10

MA (200-day) 10,102.17 Pivot 11,158.50

Technical Analysis Leverage Position

Brokerage House Fair Value Rs Recommendations

Technical Outlook

NML closed up 3.16 at 57.47. Volume was 37 per cent below average and

Bollinger Bands were 13 per cent wider than normal.

NML is currently 13.0 per cent above its 200-day moving average and is

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

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

reflect moderate flows of volume into 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) 66.09 Free Float Shares (mn) 175.80

MA (10-day) 55.87 Free Float Rs (mn) 10,103.22

MA (100-day) 48.67 CFS Shares (mn) N/A

MA (200-day) 50.84 CFS Rs (mn) N/A

Mean 57.34 CFS Rate N/A

Median 56.72 ** NOI Rs (mn) 214.01

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

Technical Analysis Leverage Position

Brokerage House Fair Value Rs Recommendations

Technical Outlook

NBP closed down -0.41 at 65.62. Volume was 60 per cent below average (con-

solidating) and Bollinger Bands were 36 per cent narrower than normal.

NBP is currently 2.1 per cent below its 200-day moving average and is dis-

playing an upward trend. Volatility is low as 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 84 Buy

AKD Securities Ltd 61.96 Neutral

TFD Research 92.3 Positive

RSI (14-day) 48.72 Free Float Shares (mn) 318.37

MA (10-day) 66.27 Free Float Rs (mn) 20,891.24

MA (100-day) 65.94 CFS Shares (mn) N/A

MA (200-day) 70.37 CFS Rs (mn) N/A

Mean 66.42 CFS Rate N/A

Median 66.83 ** NOI Rs (mn) 83.25

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

Technical Analysis Leverage Position

Brokerage House Fair Value Rs Recommendations

Technical Outlook

POL closed up 9.66 at 265.25. Volume was 31 per cent below average and

Bollinger Bands were 59 per cent wider than normal.

POL is currently 13.8 per cent above its 200-day moving average and is

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

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

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

tors are currently bullish on POL.

*Arif Habib Ltd 301 Buy

AKD Securities Ltd 296.6 Buy

TFD Research 281.35 Neutral

RSI (14-day) 63.98 Free Float Shares (mn) 107.94

MA (10-day) 259.99 Free Float Rs (mn) 28,630.21

MA (100-day) 234.56 CFS Shares (mn) N/A

MA (200-day) 233.12 CFS Rs (mn) N/A

Mean 266.49 CFS Rate N/A

Median 263.88 ** NOI Rs (mn) 218.98

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

Technical Analysis Leverage Position

Brokerage House Fair Value Rs Recommendations

Technical Outlook

HUBC closed up 0.79 at 36.33. Volume was 125 per cent above average

and Bollinger Bands were 57 per cent wider than normal.

HUBC is currently 6.7 per cent above its 200-day moving average and is

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

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

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

casting oscillators are currently bullish on HUBC.

*Arif Habib Ltd 47 Buy

AKD Securities Ltd 44 Buy

TFD Research 44.9 Positive

RSI (14-day) 68.42 Free Float Shares (mn) 810.01

MA (10-day) 35.40 Free Float Rs (mn) 29,427.59

MA (100-day) 34.52 CFS Shares (mn) N/A

MA (200-day) 34.06 CFS Rs (mn) N/A

Mean 36.37 CFS Rate N/A

Median 36.33 ** NOI Rs (mn) N/A

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

Technical Analysis Leverage Position

Brokerage House Fair Value Rs Recommendations

Technical Outlook

DGKC closed down -0.91 at 28.08. Volume was 58 per cent below average

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

DGKC is currently 4.6 per cent above its 200-day moving average and is

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

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

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

oscillators are currently bullish on DGKC.

*Arif Habib Ltd 42 Buy

AKD Securities Ltd 43.29 Buy

TFD Research 36.85 Positive

RSI (14-day) 52.38 Free Float Shares (mn) 182.55

MA (10-day) 28.69 Free Float Rs (mn) 5,125.99

MA (100-day) 26.18 CFS Shares (mn) N/A

MA (200-day) 26.85 CFS Rs (mn) N/A

Mean 28.63 CFS Rate N/A

Median 28.72 ** NOI Rs (mn) 27.68

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

Technical Analysis Leverage Position

Brokerage House Fair Value Rs Recommendations

Technical Outlook

FFBL closed up 0.18 at 33.90. Volume was 23 per cent below average and

Bollinger Bands were 51 per cent wider than normal.

FFBL is currently 15.4 per cent above its 200-day moving average and is

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

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

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

ing oscillators are currently bullish on FFBL. Momentum oscillator is cur-

rently indicating that FFBL is currently in an overbought condition.

*Arif Habib Ltd 35 Buy

AKD Securities Ltd 32.06 Accumulate

TFD Research 29.1 Negative

RSI (14-day) 71.12 Free Float Shares (mn) 326.94

MA (10-day) 33.59 Free Float Rs (mn) 11,083.22

MA (100-day) 29.23 CFS Shares (mn) N/A

MA (200-day) 29.63 CFS Rs (mn) N/A

Mean 34.06 CFS Rate N/A

Median 34.20 ** NOI Rs (mn) 30.80

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

Technical Analysis Leverage Position

Brokerage House Fair Value Rs Recommendations

Technical Outlook

MCB closed down -0.09 at 204.38. Volume was 12 per cent above aver-

age and Bollinger Bands were 59 per cent narrower than normal.

MCB is currently 1.2 per cent above its 200-day moving average and is

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

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

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

forecasting oscillators are currently bullish on MCB.

*Arif Habib Ltd 205 Hold

AKD Securities Ltd 189.75 Neutral

TFD Research 218.18 Neutral

RSI (14-day) 54.24 Free Float Shares (mn) 342.10

MA (10-day) 204.40 Free Float Rs (mn) 69,917.73

MA (100-day) 197.15 CFS Shares (mn) N/A

MA (200-day) 201.99 CFS Rs (mn) N/A

Mean 205.76 CFS Rate N/A

Median 206.76 ** NOI Rs (mn) 72.92

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

Performance of SR Equity Investment Instruments Index

Open High Low Close Change % Change

1,081.57 1,168.15 1,080.11 1,147.82 66.25 6.13

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

28,986,478 - - 29,771.58 mn 16,527.95 mn -

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

16.43 0.36 2.21 104.74 9.90 -

1st Fid Leasing 264 9.38 1.50 1.80 1.32 1.50 0.00 10628 2.24 1.01 - - - -

AL-Meezan Mutual F. 1375 5.61 6.35 6.97 6.21 6.73 0.38 248574 7.20 5.85 - - 18.5 -

AL-Noor Modaraba 210 4.18 2.90 2.90 2.51 2.51 -0.39 15300 3.80 2.10 - - 5 -

B R R Guardian Mod. 780 4.11 1.44 2.37 1.37 1.81 0.37 2081012 2.37 0.90 - - 0 -

Crescent St Modaraba XD 200 1.38 0.59 0.70 0.45 0.55 -0.04 127355 1.10 0.16 - - 1.2 -

Elite Cap Modaraba XD 113 3.06 2.59 2.69 2.40 2.45 -0.14 138015 3.09 1.65 4.5 - 5 -

Equity Modaraba 524 10.75 1.35 2.37 1.34 1.72 0.37 1621201 2.37 0.76 - - - -

First Capital Mutual F. 300 10.50 4.45 4.50 4.02 4.20 -0.25 247095 5.50 1.02 - - - -

First Dawood Mutual F. 581 0.61 2.00 2.10 1.82 1.93 -0.07 128181 2.10 1.30 - - - -

Golden Arrow XD 760 2.04 2.76 2.89 2.67 2.85 0.09 461097 3.88 2.32 - - 17 -

H B L Modaraba 397 2.30 6.38 6.91 6.38 6.89 0.51 133763 6.91 4.80 5 - 11 -

Habib Modaraba 1008 5.60 6.50 6.60 6.40 6.50 0.00 90590 7.25 5.56 20 - 21 -

JS Growth Fund 3180 53.63 3.48 4.50 3.40 4.29 0.81 9536365 4.50 2.65 - - 5 -

JS Value Fund 1186 16.50 3.26 4.73 3.25 4.62 1.36 9437100 4.73 2.31 10 - 10 -

Meezan Balanced Fund 1200 5.76 5.20 5.99 5.25 5.99 0.79 322420 6.69 5.15 - - 15.5 -

Mod Al-Mali 184 10.20 1.06 1.17 0.92 1.02 -0.04 9813 2.18 0.56 - - - -

NAMCO Balanced Fund 1000 5.08 3.09 3.70 3.00 3.25 0.16 22002 3.70 2.25 5 - 15 -

Pak Modaraba 125 5.00 0.72 1.00 0.73 1.00 0.28 6006 1.40 0.30 - - 3 -

Pak Prem Fund 1698 12.10 8.60 8.84 8.57 8.71 0.11 1565465 9.39 7.00 - - 18.6 -

Paramount Modaraba 59 6.25 8.00 8.50 8.00 8.00 0.00 8190 9.45 7.00 15 - 18 -

PICIC Energy Fund XD 1000 1.61 5.79 5.69 5.31 5.55 -0.24 462126 5.95 4.20 - - 10 -

PICIC Growth Fund 2835 6.14 8.90 9.75 8.95 9.58 0.68 672440 9.75 7.60 - - 20 -

PICIC Inv Fund 2841 5.30 4.35 4.93 4.40 4.66 0.31 1230649 4.93 3.50 - - 10 -

Prud Modaraba 1st 872 2.16 0.90 0.99 0.83 0.95 0.05 63430 1.20 0.76 - - 3 -

Punjab Modaraba XD 340 - 1.60 2.54 1.30 1.59 -0.01 97659 2.54 0.57 - - 1 -

Stand Chart Modaraba 454 4.41 8.70 9.00 8.90 8.99 0.29 134127 10.99 7.75 16.5 - 17 -

U D L Modaraba XD 264 1.63 5.85 6.25 5.30 5.75 -0.10 95727 6.99 4.71 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

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

Performance of SR Financial Services Index

Open High Low Close Change % Change

432.41 461.74 431.54 437.97 5.56 1.29

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

64,668,174 - - 30,336.44 mn 30,582.22 mn -

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

10.89 0.30 0.91 99.56 3.03 -

AMZ Ventures 225 1.27 0.55 0.77 0.49 0.56 0.01 112227 1.10 0.42 - - - -

Arif Habib Limited 450 13.69 26.85 27.74 26.65 26.84 -0.01 499741 34.00 24.40 15 25B - 20B

Dawood Cap Mngt. XB 150 1.56 1.47 2.14 1.47 1.75 0.28 320855 2.14 0.86 - - - -

Dawood Equities 250 - 1.99 2.69 1.79 2.15 0.16 440566 2.70 1.51 - - - -

Grays Leasing 215 - 1.30 2.30 0.66 1.10 -0.20 13433 2.90 0.32 - - - -

IGI Investment Bank 2121 16.25 2.75 2.88 2.60 2.60 -0.15 51272 2.88 1.17 - - - -

Invest Bank 2849 - 0.62 0.76 0.56 0.69 0.07 154215 1.00 0.44 - - - -

Ist Cap Securities 3166 - 3.70 3.90 3.44 3.49 -0.21 250242 4.80 2.54 - 10B - 10B

Ist Dawood Bank 626 0.66 1.87 2.09 1.81 1.86 -0.01 136494 2.84 1.17 - - - -

Jah Siddiq Co 7633 - 12.55 14.05 12.59 12.93 0.38 54718241 14.05 8.80 -243.778B 10 -

JOV and CO 508 - 4.34 4.60 4.11 4.16 -0.18 1930082 5.38 1.96 - - - -

JS Global Cap 500 8.05 30.40 32.00 29.05 29.95 -0.45 81263 40.00 24.25 150 - - -

JS Investment 1000 29.58 7.07 7.59 6.89 7.10 0.03 2161629 7.59 5.10 - - - -

Orix Leasing 821 5.22 6.10 7.20 5.70 7.10 1.00 117503 7.20 3.66 - - - -

Pervez Ahmed Sec 775 - 2.40 2.49 2.20 2.29 -0.11 512020 2.70 1.35 -231.08R - -

Saudi Pak Leasing 452 - 0.60 0.75 0.52 0.56 -0.04 118030 0.86 0.42 - - - -

Sec Inv Bank 514 12.00 2.90 3.45 2.10 3.00 0.10 32560 3.90 1.65 - - - -

Trust Inv Bank 586 3.13 1.71 2.70 1.55 2.00 0.29 13559 2.98 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

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

Performance of SR Life Insurance Index

Open High Low Close Change % Change

881.27 979.46 875.80 959.71 78.45 8.90

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

305,225 - - 2,290.72 mn 11,039.03 mn -

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

105.63 4.07 3.85 355.53 3.37 -

EFU Life Assurance 850 46.85 78.02 86.00 77.40 82.46 4.44 60619 86.00 51.25 5513.33B - -

New Jub Life Insurance 627 32.11 42.99 48.33 42.50 47.85 4.86 221905 48.33 36.10 10 - - -

Paid up Last 60 days 2009 2010

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

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

Performance of SR Banks Index

Open High Low Close Change % Change

1,043.45 1,076.92 1,040.29 1,048.08 4.62 0.44

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

87,509,763 - - 257,548.02 mn 636,863.73 mn -

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

7.53 1.05 13.94 40.49 5.38 -

Allied Bank Limited 7821 5.84 58.50 60.79 58.70 60.08 1.58 1748554 60.79 48.51 40 10B 20 -

Askari Bank 6427 7.69 15.85 16.55 15.85 16.14 0.29 3910466 16.65 14.00 - 20B - -

Atlas Bank 5001 - 1.56 1.75 1.51 1.52 -0.04 97858 2.55 1.50 - - - -

Bank Alfalah 13492 12.32 9.70 10.03 9.55 9.61 -0.09 3103733 10.19 7.32 8 - - -

Bank AL-Habib 7322 7.15 33.30 33.97 33.00 33.18 -0.12 685556 33.97 29.10 20 20B - -

Bank Of Khyber 5004 5.56 3.99 4.60 3.65 4.17 0.18 1305773 4.70 2.50 - - - -

Bank Of Punjab 5288 - 9.43 10.59 9.51 9.58 0.15 15923302 10.59 7.56 - - - -

BankIslami Pak 5280 850.00 3.34 3.88 3.27 3.40 0.06 1744097 3.88 2.60 - - - -

Faysal Bank XB 7309 4.65 14.40 14.60 14.05 14.40 0.00 754859 17.10 12.85 - - - 20B

Habib Bank Ltd 10019 6.51 105.60 108.79 102.55 104.22 -1.38 1227313 108.79 92.55 60 10B - -

Habib Metropolitan Bank 8732 7.53 21.17 24.73 21.30 24.61 3.44 952753 24.73 18.02 10 16B - -

JS Bank Ltd 6128 - 2.75 2.95 2.50 2.58 -0.17 635231 3.00 2.00 - - - 66R

KASB Bank Ltd 9509 - 2.35 2.59 2.16 2.25 -0.10 122323 2.98 2.03 - 26B - -

MCB Bank LtdSPOT 7602 9.06 204.47 210.00 203.51 204.38 -0.09 9057752 210.00 180.60 110 10B 55 -

Meezan Bank 6983 8.35 14.81 16.32 14.85 15.78 0.97 252207 16.32 14.05 - 5B - -

Mybank Ltd 5304 - 1.98 2.25 1.90 2.01 0.03 361750 2.75 1.62 - - - -

National Bank 13455 5.73 66.03 68.15 65.50 65.62 -0.41 19060984 70.75 60.51 75 25B - -

NIB Bank 40437 - 2.78 3.18 2.76 2.86 0.08 11169975 3.25 2.42 - - - -

Royal Bank Ltd 17180 - 5.29 5.73 3.91 5.09 -0.20 2029023 8.40 3.91 - - - -

Samba Bank 14335 - 1.85 1.95 1.80 1.81 -0.04 2258166 2.65 1.51 - - -63.46R

Silkbank Ltd 26716 - 2.65 2.78 2.62 2.65 0.00 4577923 3.08 2.50 - - - -

Soneri Bank 6023 - 7.29 7.46 7.10 7.14 -0.15 208191 8.00 5.01 - - - -

Stand Chart Bank 38716 11.63 7.20 7.70 7.20 7.56 0.36 124041 8.00 6.00 - - - -

United Bank Ltd 12242 6.86 58.76 60.00 58.00 58.35 -0.41 6197222 60.00 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

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

Performance of SR Non Life Insurance Index

Open High Low Close Change % Change

741.97 768.02 737.69 749.58 7.61 1.03

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

9,773,901 - - 11,111.34 mn 46,541.68 mn -

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

10.78 0.56 5.20 79.54 7.38 -

Adamjee Insurance 1237 23.35 81.91 84.45 80.05 80.56 -1.35 3954835 84.45 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

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

Performance of SR Gas Water and Multiutilities Index

Open High Low Close Change % Change

1,668.14 1,682.90 1,595.28 1,610.51 -57.63 -3.45

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

5,314,454 - - 12,202.80 mn 34,422.42 mn -

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

10.21 1.16 11.41 66.79 6.54 -

Sui North Gas XD 5491 8.33 30.93 31.00 27.68 27.99 -2.94 3284336 34.75 25.55 - - 20 -

Sui South GasXDXB 8390 3.42 22.49 23.65 21.51 22.71 0.22 2383815 30.70 18.71 - - 15 25B

Paid up Last 60 days 2009 2010

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

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

Performance of SR Electricity Index

Open High Low Close Change % Change

1,210.34 1,249.39 1,207.65 1,227.47 17.12 1.41

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

36,456,394 - - 95,369.29 mn 99,763.48 mn -

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

13.24 1.24 9.35 104.13 7.86 -

Genertech 198 - 0.80 0.95 0.78 0.85 0.05 27353 1.45 0.51 - - - -Hub Power 11572 6.65 35.54 37.00 35.65 36.33 0.79 14356864 37.24 32.75 33.5 - 50 -Japan Power 1560 - 1.55 1.60 1.50 1.54 -0.01 130619 2.25 1.20 - - - -KESC XR 7932 - 2.28 2.39 2.16 2.18 -0.10 2882728 2.50 1.94 - 31R - 7.8RKohinoor Energy 1695 10.56 19.48 20.44 18.40 19.00 -0.48 31665 26.50 18.40 45 - 15 -Kohinoor Power 126 2.57 4.76 4.85 4.20 4.22 -0.54 11399 6.10 3.90 - - - -Kot Addu Power 8803 4.81 39.26 40.05 39.10 39.60 0.34 1026355 42.95 38.35 64.5 - 50 -Nishat Chunian Power Ltd 3673 3.02 13.75 14.19 13.50 13.76 0.01 2735293 14.85 9.65 - - - -Nishat Power Ltd 3541 23.27 14.80 15.29 14.30 14.43 -0.37 14056724 16.10 9.60 - - - -Sitara Energy Ltd XD 191 3.48 18.98 18.99 17.98 18.66 -0.32 109038 23.49 17.98 20 - 20 -Southern Electric 1367 - 2.18 2.30 2.11 2.18 0.00 1035565 2.90 2.05 - - - -Tri-star Power XD 150 - 0.81 1.34 0.99 1.00 0.19 50450 1.75 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

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

Performance of SR Fixed Line Telecommunication Index

Open High Low Close Change % Change

1,154.45 1,183.16 1,139.25 1,147.48 -6.97 -0.60

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

9,785,383 - - 50,077.79 mn 79,453.84 mn -

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

6.24 0.80 12.84 62.56 10.02 -

Pak Datacom 78 4.99 79.10 82.99 79.00 80.90 1.80 5835 117.99 78.00 70 - 80 -Pakistan Telecomm Co A 37740 13.02 19.55 20.12 19.35 19.53 -0.02 5797305 20.12 17.32 15 - 17.5 -Telecard XD 3000 0.66 2.39 2.50 2.21 2.23 -0.16 1754080 2.69 1.80 - - 1 -WorldCall Tele 8606 - 2.74 2.79 2.61 2.61 -0.13 2228163 2.98 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

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

Ask Gen InsuranceSPOT 204 7.10 11.15 11.90 10.51 11.72 0.57 38708 12.25 8.45 - - - 25R

Atlas Insurance 369 5.56 35.34 35.50 34.00 34.95 -0.39 27154 35.50 27.10 40 10B - -

Central Insurance XB 279 6.59 57.70 62.69 57.00 58.00 0.30 13303 62.69 47.37 20 25B 10 10B

Century Insurance 457 7.11 10.73 11.50 10.50 11.37 0.64 290736 12.00 9.42 - - - -

EFU General Insurance 1250 - 45.11 47.34 45.00 46.78 1.67 375394 48.63 34.76 40 8.7B - -

Habib Insurance 400 2.87 11.99 12.65 11.95 12.04 0.05 41650 12.65 10.04 35 - - -

IGI Insurance 718 16.35 83.95 88.17 81.10 88.14 4.19 71718 88.17 66.41 35 - 10 20B

New Jub Insurance 791 15.82 57.50 60.00 55.10 58.70 1.20 15260 60.50 52.21 30 20B - -

Pak Reinsurance 3000 41.64 15.94 17.20 15.92 16.24 0.30 4374075 17.20 12.50 30 - - -

Pak Gen Insurance 250 1.65 6.20 7.10 6.10 6.96 0.76 16324 7.10 5.06 5 25B - -

PICIC Ins Ltd 350 - 6.59 8.30 7.00 7.45 0.86 501806 8.30 1.66 - - - -

Premier Insurance 303 5.32 9.83 10.30 9.65 9.85 0.02 30070 10.30 8.00 20 15B - -

United Insurance XB 400 1.89 5.20 6.59 5.00 5.76 0.56 12918 7.18 4.02 - 16B - -

SERT 0.25 0.50 0.26 0.50 0.25 5000SHDT 9.49 11.98 9.40 11.00 1.51 4686SSIC 6.61 7.72 6.70 7.14 0.53 4365STCL 8.20 9.44 7.50 9.10 0.90 4281IFSL 6.89 7.97 6.22 7.30 0.41 4208JOPP 8.85 10.70 8.15 10.00 1.15 4060SLYT 3.72 4.50 3.61 3.72 0.00 4048THCCL 20.37 20.00 19.25 19.80 -0.57 4003GFIL 3.25 4.00 3.00 4.00 0.75 3901SRSM 1.76 2.09 1.81 1.99 0.23 3901KASBM 1.41 1.89 1.26 1.26 -0.15 3806RICL 6.50 6.50 6.50 6.50 0.00 3801SING 18.26 19.26 18.00 18.01 -0.25 3734GATM 24.50 24.99 24.00 24.75 0.25 3713DINT 25.11 26.35 24.02 26.30 1.19 3656FTSM 1.07 1.70 1.20 1.65 0.58 3506ICCT 0.80 1.70 0.80 1.48 0.68 3501WAZIR 5.50 6.98 5.90 6.90 1.40 3499ATFF 3.68 3.68 3.51 3.54 -0.14 3403KSBP 68.83 70.00 68.81 69.95 1.12 3331JKSM 6.04 6.70 5.00 5.07 -0.97 3314CLCPS 1.96 2.25 1.72 1.72 -0.24 3296QUET 40.28 46.47 40.18 46.00 5.72 3204EXIDE 153.59 164.89 152.00 162.97 9.38 3033DKTM 2.34 2.90 1.50 1.50 -0.84 2905DATM 0.18 0.90 0.11 0.50 0.32 2832TRSM 1.20 1.51 1.20 1.51 0.31 2507PPP 40.50 41.44 39.00 39.66 -0.84 2327FIBLM 1.96 2.00 1.16 2.00 0.04 2314DNCC 2.91 3.00 2.75 2.90 -0.01 2215SCLL 2.30 2.89 2.30 2.80 0.50 2197LATM 6.75 7.25 6.75 7.00 0.25 2148DFSM 7.00 6.90 5.00 5.00 -2.00 2099DMTM 4.50 6.88 4.11 4.90 0.40 2091KSTM 0.62 0.89 0.53 0.79 0.17 2081DMTX 1.50 2.45 1.50 2.45 0.95 2052BFMOD 3.79 3.95 3.00 3.95 0.16 2021COTT 1.10 1.45 0.75 1.10 0.00 2013PRET 28.59 29.50 29.00 29.00 0.41 2012ZTL 3.55 4.00 3.10 3.89 0.34 2004MQTM 6.81 7.25 7.00 7.15 0.34 2001QUAT 10.49 11.74 11.09 11.74 1.25 1848MACFL 2.84 3.00 2.50 2.81 -0.03 1770HUSI 9.70 9.90 9.50 9.90 0.20 1724ALICO 17.02 17.99 17.02 17.99 0.97 1701ADOS 15.70 15.80 14.76 14.87 -0.83 1679SHCM 9.55 11.98 10.50 10.90 1.35 1670COLG 870.00 926.99 837.00 885.00 15.00 1666FRSM 20.05 20.99 20.08 20.55 0.50 1652TSMF 1.45 1.54 0.86 0.86 -0.59 1551ALTN 9.10 10.10 9.10 10.10 1.00 1540PTEC 1.85 2.99 1.77 2.09 0.24 1533BILF 1.26 1.99 1.15 1.35 0.09 1527PAKL 2.00 2.00 1.55 1.60 -0.40 1500UVIC 2.91 3.75 2.80 2.96 0.05 1500NESTLE 1931.59 2060.00 1905.02 1994.97 63.38 1473GATI 43.75 44.88 40.71 43.98 0.23 1467SCL 71.91 87.45 70.00 86.98 15.07 1444IDYM 262.80 277.90 257.00 269.00 6.20 1422SIEM 1310.68 1381.00 1300.00 1325.62 14.94 1357ATEL 17.06 17.06 16.00 16.00 -1.06 1300BROT 0.22 0.74 0.16 0.71 0.49 1232BTL 47.00 47.99 46.10 46.99 -0.01 1203CRTM 19.75 19.78 18.75 19.78 0.03 1171GAIL 4.25 5.75 4.25 4.31 0.06 1163FNEL 9.89 10.50 8.89 8.89 -1.00 1073DWAE 0.70 0.70 0.35 0.70 0.00 1055ULEVER 4076.33 4345.00 3950.00 4133.00 56.67 1026ADAMS 16.90 16.90 15.80 16.70 -0.20 1010SKFL 0.87 1.10 0.87 1.10 0.23 1000ZAHT 3.44 3.44 3.30 3.30 -0.14 999CLOV 48.57 53.73 46.15 53.73 5.16 992NPSM 21.82 22.80 22.25 22.25 0.43 950EMCO 3.14 3.95 2.40 3.00 -0.14 909MERIT 18.13 18.38 17.10 17.88 -0.25 859OTSU 33.30 34.19 32.50 34.15 0.85 809SHTM 0.60 0.69 0.50 0.55 -0.05 803SGPL 1.29 1.00 0.50 0.50 -0.79 801FZCM 53.10 54.50 53.10 54.50 1.40 773FCONM 1.75 1.98 1.01 1.98 0.23 746NMBL 1.33 1.69 1.20 1.23 -0.10 711SAPL 129.40 129.40 120.00 122.00 -7.40 698ARPAK 13.52 14.25 12.52 14.25 0.73 669ISIL 71.39 74.00 69.83 73.87 2.48 603AASM 25.89 26.98 25.25 25.25 -0.64 597BWHL 33.60 36.72 31.70 36.72 3.12 565SAPT 103.00 107.50 102.30 102.30 -0.70 549SFL 121.50 125.00 117.69 117.69 -3.81 548BIFO 45.30 49.75 43.57 47.49 2.19 544BUXL 11.10 12.00 10.05 10.05 -1.05 503CFL 10.50 11.50 10.00 11.30 0.80 502ARUJ 5.00 5.49 4.25 5.49 0.49 501AKGL 4.54 5.00 4.00 5.00 0.46 500AQTM 1.16 1.50 1.50 1.50 0.34 500SANE 2.90 2.90 2.01 2.01 -0.89 500SIGL 9.75 10.00 9.75 10.00 0.25 500GLPL 60.00 63.90 60.01 60.50 0.50 466MEHT 55.00 57.00 53.31 54.10 -0.90 400INKL 9.00 9.50 9.00 9.50 0.50 394SASML 5.75 5.75 4.75 4.75 -1.00 300RMPL 1917.22 2050.00 1840.00 1850.60 -66.62 282DADX 23.90 25.00 24.71 25.00 1.10 250CSIL 3.90 4.60 3.30 3.75 -0.15 211PGCL 18.49 20.63 18.49 20.63 2.14 204DWTM 0.00 4.80 3.80 0.00 0.00 200JVDC 59.98 60.00 57.00 59.97 -0.01 194HUSS 10.90 11.10 9.25 10.97 0.07 194GRAYS 51.83 55.23 50.00 53.43 1.60 191SHJS 72.40 87.89 73.00 87.89 15.49 179POAF 8.40 9.00 8.00 8.80 0.40 162KCL 9.50 9.50 9.50 9.50 0.00 150HAJT 0.50 0.60 0.50 0.60 0.10 150PHDL 42.19 42.19 38.00 40.00 -2.19 137FNBM 6.86 6.86 5.51 6.75 -0.11 132SZTM 5.01 7.00 5.00 7.00 1.99 105BCML 15.25 14.85 13.40 13.40 -1.85 103GUTM 22.05 24.30 22.05 24.00 1.95 102SUTM 35.30 35.30 34.00 34.99 -0.31 102ISTM 6.20 6.50 5.45 5.45 -0.75 90BAFS 56.00 67.00 58.80 64.00 8.00 83UPFL 1087.00 1090.00 1032.65 1035.50 -51.50 78SHNI 14.00 14.00 13.00 13.00 -1.00 73MFFL 70.71 73.00 69.00 70.00 -0.71 65TOWL 14.90 13.90 12.90 12.90 -2.00 63ICL 25.64 28.70 26.90 28.30 2.66 61PASM 8.25 9.48 8.99 8.99 0.74 61FECS 40.36 40.50 40.00 40.00 -0.36 50TRPOL 0.60 1.49 0.60 0.99 0.39 50WYETH 850.00 889.00 830.00 870.00 20.00 46SHEZ 93.15 100.25 90.51 100.25 7.10 27FZTM 425.00 438.00 405.00 430.00 5.00 26KML 2.47 3.47 1.91 2.50 0.03 26HWQS 20.48 21.50 17.50 17.50 -2.98 22NATM 10.70 11.00 9.05 9.05 -1.65 20DIIL 9.10 12.59 9.50 10.80 1.70 17KOSM 1.05 1.60 0.16 0.90 -0.15 17LIBM 55.50 56.50 55.50 56.49 0.99 15

Symbols Open High Low Close Change Vol

Al-Abbas Cement 53.82 3.20 3.15 3.30 3.35 3.25

Allied Bank Limited 78.44 59.35 58.60 60.60 61.10 59.85

Attock Cement 56.18 62.80 61.20 65.75 67.10 64.15

Arif Habib Corp 64.16 26.00 25.70 26.80 27.30 26.50

Arif Habib Limited 50.87 26.45 26.05 27.45 28.05 27.05

Adamjee Insurance 61.48 79.80 79.05 81.55 82.55 80.80

Askari Bank 59.93 16.05 16.00 16.25 16.35 16.15

Azgard Nine 52.51 10.95 10.75 11.50 11.80 11.30

Attock Petroleum 53.11 316.00 313.60 322.40 326.40 320.00

Attock Refinery 75.06 125.70 124.30 128.30 129.50 126.90

Bank Al-Falah 54.00 9.50 9.40 9.75 9.90 9.65

BankIslami Pak 56.11 3.20 2.95 3.75 4.10 3.55

Bank.Of.Punjab 55.22 9.40 9.25 9.85 10.15 9.70

Dewan Cement 57.02 1.65 1.60 1.75 1.80 1.70

D.G.K.Cement 52.38 27.85 27.60 28.40 28.70 28.15

Dewan Salman 44.70 1.50 1.45 1.60 1.65 1.55

Dost Steels Ltd 59.19 2.85 2.80 3.00 3.05 2.95

EFU General Insurance 63.13 45.90 45.05 47.50 48.20 46.60

EFU Life Assurance 64.87 81.40 80.35 84.15 85.80 83.05

Engro Chemical 57.80 181.30 180.05 184.15 185.75 182.90

Faysal Bank 42.60 14.20 14.00 14.60 14.80 14.40

Fauji Cement 52.40 4.95 4.90 5.05 5.10 5.00

Fauji Fert Bin 71.12 33.75 33.60 34.10 34.35 33.95

Fauji Fertilizer 61.92 110.80 110.10 112.40 113.30 111.70

Habib Bank Ltd 54.42 102.75 101.30 105.45 106.70 104.00

Hub Power 68.42 35.95 35.60 36.75 37.20 36.40

ICI Pakistan 63.47 134.55 134.10 135.95 136.85 135.45

Indus Motors 71.29 261.65 257.85 271.65 277.85 267.85

J.O.V.and CO 57.44 4.05 3.95 4.35 4.55 4.25

Japan Power 48.40 1.50 1.45 1.60 1.65 1.55

JS Bank Ltd 43.77 2.45 2.30 2.80 3.00 2.65

Jah Siddiq Co 44.21 12.70 12.45 13.30 13.65 13.05

Kot Addu Power 45.20 39.30 39.00 39.90 40.20 39.60

K.E.S.C 50.61 2.15 2.10 2.25 2.30 2.20

Lotte Pakistan 73.12 11.85 11.75 12.00 12.10 11.95

Lucky Cement 51.87 73.45 72.60 75.45 76.70 74.65

MCB Bank Ltd 54.24 203.75 203.15 205.25 206.15 204.65

Maple Leaf Cement 48.32 2.85 2.80 2.95 3.00 2.90

National Bank 48.72 65.45 65.25 65.95 66.25 65.75

Nishat (Chunian) 63.95 23.85 23.65 24.35 24.70 24.15

Netsol Technologies 50.75 18.85 18.70 19.35 19.65 19.15

NIB Bank 53.11 2.80 2.70 3.00 3.15 2.90

Nimir Ind.Chemical 52.81 1.45 1.40 1.55 1.60 1.50

Nishat Mills 66.09 56.85 56.20 58.50 59.50 57.85

Oil & Gas Dev. XD 69.86 162.15 161.00 164.25 165.20 163.10

PACE (Pakistan) Limited 47.97 2.85 2.80 2.95 3.00 2.90

Pervez Ahmed Sec 56.44 2.20 2.15 2.35 2.40 2.30

P.I.A.C.(A) 48.05 2.20 2.15 2.30 2.40 2.25

Pioneer Cement 35.82 6.30 5.65 7.90 8.80 7.25

Pak Oilfields 63.98 263.45 261.65 268.15 271.05 266.35

Pak Petroleum 66.67 200.90 199.70 204.15 206.20 202.95

Pak Suzuki 44.22 72.55 71.80 74.45 75.60 73.70

P.S.O. XD 57.20 281.55 279.80 286.00 288.70 284.25

P.T.C.L.A 56.19 19.40 19.30 19.65 19.75 19.50

Shell Pakistan 63.03 198.40 195.45 204.15 206.95 201.20

Sui North Gas 29.53 27.65 27.30 28.35 28.70 28.00

Sitara Peroxide 61.24 13.35 13.20 13.70 13.85 13.55

Sui South Gas 40.35 22.50 22.25 22.95 23.20 22.75

Telecard 43.06 2.20 2.15 2.30 2.40 2.25

TRG Pakistan 53.60 4.10 3.95 4.40 4.55 4.25

United Bank Ltd 61.22 57.90 57.45 58.90 59.45 58.45

WorldCall Tele 50.46 2.60 2.55 2.70 2.75 2.65

Company RSI 1st 2nd 1st 2nd Pivot

(14-day) Support Resistance

Mirpurkhas Sugar Mills Limited 30-11-2010 11:00

Chenab Limited 30-11-2010 2:00

TRG Pakistan Ltd 03-12-2010 7:00

Company Date Time

Monday, November 29, 2010 8

Freddie Mac may hikefees on some US mortgages

SKorea gets11 biddersfor $6bn

Woori stakeSEOUL: Eleven bidders,including a group led byWoori Finance Holdings,expressed interest in buyingup to 57 per cent -- wortharound $6 billion -- of SouthKorea's top financial servicesfirm, the government saidFriday.

The Woori auction drew sur-prisingly strong interest,allaying market concern thegovernment may have todelay the sale of its stakeagain after potential bidderHana Financial (086790.KS)pulled out of the race, optingto buy a $4.1 billion stake inKorea Exchange Bank onThursday.

The Woori stake sale wouldmark the completion of SouthKorea's bank privatisationprogram after it injected bil-lions of dollars of taxpayers'money to bail out financialfirms in the wake of the Asianfinancial crisis in the late1990s.

Korea poured 12.8 trillionwon ($11.2 billion) into Woorito recapitalise it and hasrecovered less than half of themoney.

Woori, hoping to stand onits own feet and avoid beingmerged with a rival, formed aconsortium led by its employ-ees who committed 900 bil-lion won, the group said in astatement.

It had also lined upinvestors including steelmak-er POSCO , telecoms operatorKT Corp and the NationalPension Service, a sourcefamiliar with the matter saidearlier, declining to be identi-fied because of the sensitivityof the issue.

The Korea DepositInsurance Corp (KDIC), thetop shareholder of Woori,declined to reveal names ofindividual bidders.

Media reports said privateequity firm Carlyle Grouphas also submitted interest forthe Woori stake, whileAffinity Equity Partners, theKorea-based MBK Partnersand Vogo Fund were also bid-ders for Woori.

Online news outletMoneyToday reportedMacquarie Group andMetLife Inc joined in the bid-ding as strategic investors.

Carlyle, Affinity, Macquarieand Metlife were not availablefor comment, while MBK andVogo declined to comment.

A government officialinvolved in the deal refused tocomment, citing the confiden-tiality.

Industrial and CommercialBank of China submitted itsletter of intent for a regionalbanking unit of Woori that isalso on sale, local media said.

The auction, which requiresbidders to buy at least 4 percent of Woori or merge withit, comes a day after smallerrival Hana agreed to snap up51 per cent of KEB from LoneStar LS.UL in Korea's biggestbank acquisition.

The government plans topick a preferred bidder forWoori by March and finalisethe deal by June.

KDIC created Woori inApril 2001 by merging banksthat received public funds inthe wake of the Asian finan-cial crisis, and has sold 43 percent of Woori shares in aseries of sales beginning inJune 2002.

It is also selling two region-al banking arms of Woori --Kwangju Bank andKyungnam Bank -- and saidon Friday it has receivedinterest from 12 bidders forthe regional banks. -Reuters

NEW DELHI: India's federalinvestigator is probing 21 size-able companies for links to abribes-for-loans scandal thathas hit lending and infrastruc-ture shares and rocked thecountry's image as an invest-ment destination.

Eight financial executivesfrom the public and privatesectors have been arrested inthe scandal, one of several todog the government of PrimeMinister Manmohan Singh andtest India's ability to crackdown on corruption.

Many of the companies thefederal Central Bureau ofInvestigation (CBI) has linkedto the case are connected to thebooming infrastructure sector -- builders of dams, powerplants, energy equipment mak-ers and property developers.

Shares in these sectors fellsharply on Friday.

The CBI is also looking intothe involvement of fund man-agers and senior officials atstate-run insurance companiesin all deals arranged by MoneyMatters Financial Services, thefirm cited as the mediator onthe deals.

The CBI is also probing allblock deals, bulk deals andshare placements arranged byMoney Matters, a source withdirect knowledge of the mattertold Reuters.

Bond and rupee markets inone of the world's fastestgrowing emerging economiesremained unaffected as tradersdid not view it as a risk to thebanking system.

Analysts said the scandal,coming just a few days afterSingh defended his govern-ment in another case involving

mobile phone licences sold forbelow-market prices, couldharm investor sentiment.

"If we can clearly say thatwe have done something rightat this point in time and doproper things at this point intime then it's salvageable butotherwise it does have a poten-tial to impact investor senti-ments towards India from amedium-term perspective,"Nitin Jain, Singapore-basedprincipal of fund managerKotak Mahindra.

Ratan Tata, one of India'smost powerful businessmen,criticised the Indian govern-ment in a rare interview.

"I wish the governmentwould take a stand, bringorder...have an investigation,book people who are guilty ofsomething," he said in anexcerpt from an interview tobe aired on Indian broadcasterNDTV on Saturday.

Investors so far remain keento tap into a country with ayoung and fast-urbanisingpopulation of 1.2 billion.

Economic growth is forecastat 8.5 per cent in 2010-11, andbetween 9 and 10 per cent ayear after that, rivalled only byChina among majoreconomies.

But repeated scandals inrecent months have marked achange from the days whencorruption and graft commandlittle space or time on thecountry's top media outlets.

Analysts say this is due tothe explosion of 24-hour tele-vision channels, a moreassertive opposition and agrowing middle class fed upwith rampant graft throughoutsociety.

"Notices have been sent to21 companies. It includes bigto medium size companies,including real estate compa-nies," a CBI official, who didnot want to be named, toldReuters.

"Preliminary evidence pointsto the fact that the case is lim-ited to individuals. So fall-outis unlikely to be big."

Several leading Indian com-panies have acknowledged thatthey have been asked for infor-mation. Some were alreadynamed in court documentsfiled by the CBI on Wednesdayand include the world's thirdlargest wind turbine makerSuzlon Energy. Suzlon hasdenied any wrongdoing.

On Wednesday, federalagents arrested senior officialsat state-run Central Bank ofIndia, Punjab National Bankand Bank of India -- all majorbanks with operations acrossthe country.

The CBI said the executiveshad received bribes fromMoney Matters.

Three senior Money Mattersexecutives were also arrestedon charges of handing outbribes.

Shares in real estate andenergy sectors have fallen overthe past few days on fears thata cash crunch could delay orderail major development proj-ects, some key to India's ambi-tious infrastructure expansiongoals.

India was ranked 87th inTransparency International's2010 ranking of nations basedon the perceived level of cor-ruption. India lies behind rivalChina, which is in 78th place. -Reuters

India insurers facegraft investigation

India probes 21 cos in bribes-for-loans scandal

PUTRAJAYA: All employersin Malaysia must, from Jan. 1,2011, take medical insurancefor newly employed foreignworkers, a Malaysian officialsaid in Malaysia's federaladministration center here.

For existing foreign workers,the employers must take thesame insurance for them whenrenewing the workers' permits,Malaysian Health MinisterLiow Tiong Lai told reportersafter chairing the ministry'smanagement meeting here onThursday.

According to Liow, the annu-al insurance premium for eachforeign worker is 120 ringgit(38.8 US dollars), and employ-ers are free to engage any insur-ance company to provide thehealth coverage.

Currently, there are about twomillion legal foreign workersworking mainly in the fields ofconstruction, plantation andmanufacturing, with most ofthem originating fromIndonesia and several countriesin South East Asia and SouthAsia.

Liow said to date, foreignworkers were owing theMalaysian government hospi-tals as much as 18 million ring-git (5.82 million U. S. dollars),

and the figure was on the risegiven the fact that the numberof foreign workers was increas-ing.

This was because the workersonly settled partial medicalpayment after enjoying thehealth services, explainedLiow, adding that some did noteven pay the hospitals.

The minister said that bymaking it mandatory foremployers to take health insur-ance for their foreign workers,the Malaysian government'sfinancial burden could bereduced.

Some medical personnelclaimed that some foreignworkers went to Malaysiangovernment hospitals under thepretext of "buying" expensivemedicines at very low prices,and "exported" the drugs totheir hometowns.

As Malaysia strives tobecome a high-income devel-oped nation by 2020, theMalaysian government is alsotrying hard to reduce thenation's dependence of foreignworkers.

It is the Malaysian govern-ment's aim to cut the number offoreign workers in the countryto 1.5 million by end of 2010.NNI

Foreign labourhealth covermandatoryin Malaysia

Funeralinsurance

officers heldfor fraud in USNEW YORK: Six officials ofa company that sold pre-arranged funerals were indictedfor allegedly diverting as muchas $600 million in insurancepolicy money for personal use,federal authorities said onTuesday.

Officials said NationalPrearranged Services Incpreyed on people who wantedto buy policies to insure againsttheir relatives being stuck withfuneral bills.

The indictment filed in USDistrict Court accuses the com-pany officials of fraud, embez-zlement, money laundering andconspiracy. -Reuters

KARACHI: M Mazharul Haq, Director-GSD (SBP-BSC), Ahsan Kamal Director-HRD (SBP),Taher G Sachak Managing Director

& CEO EFU Life, S Ali Raza Zaidi Executive Director EFU Life with other senior executives of

State Bank of Pakistan and EFU Life Assurance. Staff Photo

WASHINGTON: Banksshowed further signs of recov-ery in the third quarter, helpedby the lowest level of loan-lossprovisions since before the2007-2009 financial crisis, butdrew a warning from a top reg-ulator not to go too far.

Federal Deposit InsuranceCorp Chairman Sheila Bair saidbanks should not cut reservestoo quickly given the fragileeconomy.

"Many institutions came intothe recent crisis with inadequatereserve levels, and they need toexercise restraint in drawingthem down now," she said.

Bair gave her quarterlyassessment of the industry justbefore rushing off to attendonly the second meting of a

new council of regulatorsdesigned to curb undue risk-taking by financial institutions.

The Financial StabilityOversight Council (FSOC) tooka step on Tuesday toward bol-stering supervision of certainderivatives clearinghouses andgiving them access to theFederal Reserve's emergencylending facilities.

A Treasury official alsoupdated panel members on aregulatory investigation of fore-closure practices, with banksand other mortgage servicersunder fire for sloppy documen-tation.

"The bulk of the examinationwork to date focused on theforeclosure process has foundwidespread and, in our judg-

ment, inexcusable breakdownsin the foreclosure process," saidMichael Barr, assistantTreasury secretary for financialinstitutions.

The FDIC's quarterly reportcard on the banking industry'sthird quarter performanceshowed both profit growth,which was partly due toreduced loan-loss provisions,and an increasing divergencebetween the nation's mega-banks and its smaller ones.

The FDIC reported aggregateindustry earnings rose to $14.5billion in the third quarter ver-sus $2 billion a year earlier.Profits would have been upsequentially from the secondquarter, as well, if not for amassive charge-off recorded by

the industry's largest player,Bank of America.

The number of banks on theregulator's "problem list" hit itshighest level since 1993,despite better loan perform-ance, while loan-loss reservesfell for the first time since late2006, mostly due to largebanks' actions, the agency said.

"Bair's comments are aimedprimarily at mid-sized andsmaller banks that have yet toshow consistent credit qualityimprovement. This supports ourbroad thesis that the very largebanks are improving muchfaster than the rest of the indus-try," said MF Global financialservices analyst Jaret Seiberg.

As head of the FDIC, Bair isa member of the new risk over-

sight council, an inter-agencypanel of regulators created tokeep an eye on precisely thesort of broad risk that might beposed by lower loan-lossreserves.

The council, set up undersweeping banking and WallStreet reforms enacted in July,met behind closed doors onTuesday, then held a brief opensession later in the day.

Almost four months sinceDemocrats and PresidentBarack Obama pushed throughthe reforms over the oppositionof banks and Republicans, gov-ernment regulators are con-sumed with the implementationof hundreds of new rules andregulations.

Industry lobbyists are moving

to soften the Dodd-Frank law atthe implementation level,where Congress left reams ofimportant details to be ham-mered out by federal authori-ties.

The FSOC is empowered totag certain organisations as"systemically important" to thestability of the economy. Firmsthus labeled must answer tostricter oversight.

The council last month begansketching out the criteria it willuse for deciding which non-bank financial firms get namedas "systemically important." Itdid the same on Tuesday forexchanges, clearinghouses anddata repositories that are beingset up for off-exchange deriva-tives trading.-Reuters

Banks warned on loan-loss provisions

LONDON: British insurance-focused takeover specialistChesnara said it was buying theSave & Prosper Group for 63.5million pounds ($100 million) todouble its operations in Britain.

Chesnara, which competeswith Phoenix Group to buy lifeinsurers that no longer acceptnew customers, will partly fundthe takeover, its fourth sincebeing formed in 2004, from ashare placing on Friday whichraised 26.7 million pounds.

The balance will come from a40 million pound bank loan.

Chesnara chief executiveGraham Kettleborough toldReuters the company might bidfor another "small" Britishinsurer that will come up for salesoon, and was also on the look-out for opportunities in WesternEurope.

The company, which last yearbought Swedish life insurerModerna, targets insurers andlife insurance funds valued at

between 50 and 200 millionpounds.

Chesnara is buying Save &Prosper, a unit of JP MorganAsset Management, at a 31 percent discount to its embeddedvalue, an insurance industry val-uation measure that includes thepresent value of future premi-ums from existing policies.

The acquisition will reinforceChesnara's ability to pay divi-dends to shareholders,Kettleborough said.

Chesnara was advised on theSave & Prosper deal byHawkpoint Partners, whilePanmure Gordon and CollinsStewart are acting as lead under-writers in the share placing.

Chesnara also said it had trad-ed in line with expectationssince June 30.

Shares in the company weredown 1.6 per cent at 207.5pence at 1445 GMT, valuing thecompany at about 207 millionpounds. -Reuters

Chesnara buysSave & Prosper

Insurers atKSE go good

during last wkStaff Reporter

KARACHI: Insurance stockswitnessed some positive activi-ties last week at the KarachiStock Exchange (KSE) withmore than 10 million sharestraded together in life and non-life insurance stocks. Pak Reinsurance was the vol-ume leader with 4.37 millionshares followed by AdamjeeInsurance with 3.95 millionshares. Top gainers of the week includeNew Jubilee Life Insurancewhich increased by Rs4.86 toclose at Rs47.85 and EFU LifeAssurance which was up byRs4.44 to close at Rs82.46while Adamjee Insurance wasdown by Rs1.35 to close atRs80.56 and ShaheenInsurance lost Rs1 to close atRs13 to be the major losers ofthe week.

09Monday, November 29, 2010

Gottwald of Austria celebrates after he won the FISWorld Cup Nordic Combined in Ruka, Kuusamo

Evertonkeen to lure

Beckhamback

LONDON: Everton haveoffered former England captainDavid Beckham a chance toreturn to the Premier League ona short-term loan from the LosAngeles Galaxy during MajorLeague Soccer's close season.

"If would hope that if Davidwanted to come he would pickup the phone and call me," saidMoyes, who is still hoping tore-sign Beckham's Galaxyteam mate Landon Donovan ona second three month loan deal.

"I know him and if DavidBeckham wanted to come backto the Premier League, hewould only need to call me orPhil. We would be here for himat Everton."

Moyes, whose side are 14thin the league after a slow startto the season, played withBeckham when the futureManchester United player wason loan at Preston North Endin 1995.

Beckham has spent his lasttwo winter breaks on loan toAC Milan in Italy.

The Londoner, who has 115England caps, was ruled out ofhis country's World Cup cam-paign in South Africa this yearby an Achilles tendon injuryand returned to action for theGalaxy in September.

He said in October that hewould not have any more loandeals, given the injury hepicked up last time, althoughhe still believes he has anEngland future. His Galaxycontract expires at the end of2011.-Reuters

LONDON: With sixWimbledon trophies alreadypacked on to his mantelpiece,Roger Federer would like noth-ing more than to win a singlesgold medal on the hallowed turfwhen it hosts the Olympic ten-nis event in 2012.

The 16-times grand slamchampion has stockpiled somany records in his decade-long career that a couple ofrainforests have probably beenchopped down to produce thepaper needed to print them all.But there is one more chapterhe would dearly love to add tohis memoirs -- winning anOlympic singles title.

Dressed in a dapper navy suitand tie, Federer settled into awell-worn leather armchair inthe corridor of a plush Londonhotel to have a chat withReuters about how much win-ning the gold will mean to himand how Wimbledon will final-ly put tennis at the forefront ofthe Olympics.

Q: Roger, for all your grandslam wins and records, the oneglaring omission in yourimpressive resume is theOlympic singles gold. Howmuch of a priority is it to win itin 2012, especially since it'sbeing held at Wimbledon?

FEDERER: "The beauty ofit being at Wimbledon is hugefor the world of tennis. At theOlympics, the focus is onswimming and athletics andtennis has been forgotten a littlebit.

"At the last couple ofOlympics, we've seen the bestplayers are always playing.Rafa (Nadal) winning the sin-gles in Beijing, me winning thedoubles over there, that wasgreat news for tennis in anOlympic spirit.

"I've now carried the flagtwice, in Beijing and Athens,and it's always been a dream forme to play for my country andto win an Olympic gold. Ialready have one but still, thespecial part of having it atWimbledon will be amazing."

Q: Do you think that will beyour last chance to win the

Olympic singles title or do youplan to stick around for 2016 inBrazil?

FEDERER: "I will be 35 in2016. I haven't thought that faryet and I don't even know whatsurface they'll play it on,whether it's going to be clay orhard court. I hope in someways, it's (2012) not my lastjust because I like to play for solong. For an Olympics, I defi-nitely could get up for that, noproblem."

Q: For you personally, whatis the main attraction of theLondon Games? The fact thatit's at Wimbledon or that afterplaying three Olympics onhardcourts, this one will be ongrass?

FEDERER: "The grass isone part, it being at the HolyGrail of tennis is the secondone. London, if you see howsuccessful this World TourFinals is, how successfulWimbledon is, how much ten-nis is liked in this country -- allthese things make this a veryvery special place to play ten-nis."

Q: At the last two Olympics,you were favourite to win thesingles gold. How much does ithurt that you were unable tofulfil this?

FEDERER: "It's somewhatsurprising. In 2000 I had noexpectations and I played thesemis and missed out on apotential gold. Then missed outon the bronze by losing thebronze medal match too. Icouldn't believe how close Iwas all of a sudden from amedal at the Olympics.

"Athens was disappointingbecause in '04 I won threemajors, I played great. I didn'treally play a bad match. It wasjust really quick conditions, Iplayed (Tomas) Berdych whoalso loves quick (conditions)and who I didn't know backthen yet.

"I was caught by surprise by agood, young player who hadnothing to lose. It was a toughloss for me... more than maybeBeijing because there I felt mygame was not 100 percent on. I

ended up losing to JamesBlake, who I had never lost tobefore.

"It was a disappointment aswell. Especially as expectationsgrew more and more fromSwitzerland because we don'twin 50 medals at an Olympics,so they were hoping that Iwould definitely get a medal.

"But then I was so happy tohave won the doubles there (inBeijing) because that camecompletely as a surprise and

that was why the joy was sobig."

Q: Which is your most mem-orable Olympic memory --meeting your wife Mirka dur-ing the 2000 Games or winningthe doubles gold in Beijing?

FEDERER: "Ha ha. That'swhy I've had very emotionalOlympics. Meeting Mirka inSydney, carrying the flag inAthens for the first time, thencarrying the flag in Beijing onmy birthday on the 8th ofAugust and then winning thegold.

"I've always had somethingspecial happening at all theOlympics. It's changed howother athletes look at me todayat the Olympics. I can barely dothe opening ceremonies as they(other athletes) eat me up as Iwait inside. I'm happy to gothrough with it because for meit's a dream to be a part of the

Olympic spirit and everythingit stands for. I like being there.

"I couldn't choose (which onewas more memorable) butobviously Mirka is long-last-ing, I've had 10 incredible yearswith her, I've two beautiful kidswith her so I guess that's mynumber one pick."

Q: A lot of top players oftentend to skip the Olympics, willholding it at Wimbledonchange that?

FEDERER: "It being in

London will help the cause. Wedon't have to travel an extrathousands of miles to get to thevenue as we travel enough.Before you had some guys whodid not like playing on grass atall so they would just skip it.But now it's different.Everybody today plays ongrass. For raising awareness fortennis at the Olympic Games, Ithink London is going to be theperfect place."

Q: A lot of people have ques-tioned the inclusion of tennis inthe Olympics and usually it isnot as high profile as say athlet-ics or swimming. Do you thinkstaging it at Wimbledon willgive it more prominence in2012?

FEDERER: "I'm sure it will.I think this is going to be thebiggest focus on tennis at anOlympics. Because swimmingis huge in Australia, in Athens it

was more on the athletics and(in tennis) many of the top guyslost early so it never reallycaught fire.

"In Beijing, everything washuge as they were waiting forthat for years and years. InLondon, with the heritage wehave for tennis throughWimbledon, it's probably goingto be the biggest tennisOlympics we're going to have."

Q: Do you think the atmos-phere will be different than

playing during the Wimbledonfortnight?

FEDERER: "Possibly. I'mlooking forward to it and I hopeit's going to be somewhat dif-ferent.

Different is good becausechanges are nice. I heard wemight even be playing in colour(clothes) at Wimbledon whichis going to be so unusual.

"For me it's going to be extraspecial as hopefully my kidscan come and see a match forthe first time at an Olympics.My parents will be able to showup for the first time at anOlympics because they didn'tdo the trip to Sydney, Athens orBeijing and that's going to be ahuge difference for me. I likehaving my family around, espe-cially for something so emo-tional."

Q: What are you plans for thesummer of 2012? Will you stay

in England from Wimbledonthrough to the Olympics sincethere is only a three-week gapbetween the two?

FEDERER: "I haven'tplanned that far ahead but Imight go back and come backjust because I can asSwitzerland is so close. It's agood schedule for most of theplayers. I doubt I will play atournament in between.

"I don't even know if I'mgoing to stay at the OlympicVillage yet or even WimbledonVillage. I stayed twice in the(athlete's) village, in Sydneyand Athens, but I tried the hotelin Beijing just because that'swhat I'm used to most and itkind of worked. So we'll seewhat I'll do."

Q: What's your programmelike at the Olympics? Do youhave time to watch other sportsand socialise with other ath-letes?

FEDERER: "I tried to. Iwent to watch swimming andbadminton in Australia withMirka even though we weren'ttogether yet but we just went.That's been the disappointingpart for me really because Idon't remember going inAthens and Beijing to see anyother sports because we didn'thave any time.

"Hours are very crampedbecause we play singles anddoubles. I think there's evenmixed (doubles) now in 2012. Idon't know who finds time todo it.

"Now it could be slightly dif-ferent because if we are therethree weeks earlier, we just staythere.

Usually we come in earlyenough but just not earlyenough to go see the othersports. That something thatcould change for 2012 and I'mlooking forward to it."

Q: It will be your firstOlympics as a father. How doyou think that having your twindaughters, who will be three bythen, impact things?

FEDERER: "It's going toinspire me more. Then they willunderstand more and more

about tennis. They have no clueobviously at the moment butthey understand when daddygoes and plays and has theheadband on on TV, they recog-nise me and that's great.

"I can only imagine in twoyears how different that's goingto be. If they can join me andeven sit on the stands for one ofthe games that's going to begreat."

Q: One of your most memo-rable celebrations was whenyou won the gold in Beijingwith your doubles partnerStanislas Wawrinka. He waslying on his back while youwere comically hovering yourhands over him. What kind ofcelebration can we expect ifyou win singles gold on themost famous Centre Court?

FEDERER: "Oh God, I'll bealone on the court so nothingcrazy.

I hope it happens, I'll beready to do anything then. Ithink it was funny thing to doback in Beijing… but there'snothing in the plans as it's sofar away."

Q: Now that you are friendswith Queen Elizabeth aftermeeting her at Wimbledon thisyear, have you dreamt about herputting that gold around yourneck in 2012?

FEDERER: "Ha ha, no, no, Ihaven't. It was nice goingthrough a medal ceremony (inBeijing) with the nationalanthem. It was beautiful andone of the more emotionalmoments of my career. Sure, I'dlove to go through it again. Atthat point I almost don't carewho gives me the medal as longas I would get it.

"Because it's so unusual forus to hear our national anthem,when you win (and you do hearit), I think it's a moment ofcalm. A moment where you canhave pictures go through yourmind again, what just all hap-pened -- the last couple of days,hours, weeks and all the effortyou put into it. It's a great feel-ing and I hope it happensagain."-Reuters

Going for Wimbledonian Gild

GUANGZHOU: China'swomen volleyballers clinchedthe last gold medal at theGuangzhou Asian Games onSaturday as organisers pre-pared to say farewell to nearly10,000 athletes under a tightsecurity blanket.

Having already smashedthrough their 183 gold recordat the 1990 Games, the hostswere determined to end theparty just as they had begun it,with a relentless march to thepodium accompanied byecstatic cheers from home fans.

Two weeks after ChineseWushu fighter Yuan Xiaochaosnatched the first gold of theGames, China's women cameback from a two-set deficit tosink South Korea in the volley-ball final.

The title brought the hoststheir 199th gold medal, but del-egation chiefs said there wasstill work to be done.

"Although we have a rela-tively large amount of goldmedals, only a few attainedworld standards and most ofthem lacked the competitivestandard of the Olympics,"deputy chef de mission DuanShijie told reporters.

"The situation in the lead-upto the London Olympics isgrim and we can not rest on ourlaurels."

Security forces were also onhigh alert in the centre ofGuangzhou, with roads closedoff and scores of police gather-ing at residential compoundsnear Haixinsha island, thevenue of both the opening andclosing ceremonies.

"We just wanted to see thevenue, but the police and vol-

unteers would not allow visi-tors," said Pang Bin, a retired57-year-old, touringGuangzhou with his wife. "Sodisappointed."

Guangzhou organisers havepromised another visual spec-tacular to say goodbye to the45 delegations that have partic-ipated in the mammoth pro-gramme of 42 sports.

LION DANCEAthletes arrived at the water-

themed opening ceremony on aflotilla of boats down the PearlRiver, but on Saturday theywill walk into a glimmeringopera house to be entertainedby folk and a traditional liondance.

South Korean pop-singerRain was also scheduled to per-form as part of the handoverceremony for the Games nexthosts, Incheon in 2014.

Earlier, Zhou Chunxiu gaveChina gold in the women'smarathon, ahead of team mateZhu Xiaolin.

The battle for medals in themen's marathon was moreheated with gold medallist JiYoung-jun of South Korea andKenya-born Mubarak Shami ofQatar sniping at each other fora large part of the race.

After Ji ran into Shami'sheels, the hot-tempered Qataricuffed the South Korean on hisshoulder and scolded himangrily. "It really upset me ...But I don't think he meant to doit," Shami said.

BEST FOR LASTMilitary-ruled Myanmar

saved their best for last by win-ning their only two goldmedals on the last day in themen's and women's doubles

sepak takraw.The tight victory over South

Korea in the men's final provedtoo dramatic for team leaderNyan Htun who fainted andwas sent to hospital on astretcher.

"He was shocked ... and justcollapsed," head coach KyawZin Moe told Reuters asmedics checked his vital signs.

While China's athletes domi-nated, Japan lost their battle forrunner-up bragging rights to

South Korea, who managed 76golds to their rivals' 48 and cutinto Japan's traditional strong-holds of judo, wrestling andswimming.

"Our results are not good andthis is Japan's sporting level inAsia right now. It's painful butwe have to recognise that,"Japan chef de missionNoriyuki Ichihara said.

Organisers basked in theglow of praise from OlympicCouncil of Asia president

Sheikh Ahmad Al-Fahad Al-Sabah who described theGames as "extraordinary,"despite earlier rapping officialsover half-full venues andexcessive security measures.

"This is the best Games now.And at Doha I was saying thatit was the best Games. And Ihope that at Incheon we'll say itwas the best Games," SheikhAhmad told Reuters as he wasushered into a courtesy car.

The OCA President also

praised North and South Koreanathletes who battled tooth andnail for titles ranging fromwrestling to archery amid theworst military flare-up betweenwar-time foes in decades.

"We are very sorry for whatis happening between the twoKoreas. Here we are sportspeople and the athletes haveparticipated shoulder to shoul-der without any problems inour Asian Games," he said.-Reuters

CHINA HITS GOLDMINE AT AGAMES

GUANGZHOU: Fireworks explode during the closing ceremony of the 16th Asian Games.-Reuters

10 Monday, November 29, 2010Analysis & Feature

Weaning the globalmonetary system offits reliance on the

dollar has eluded policy mak-ers for decades, but the windmay now be blowing inFrance's favour as it seeks tobuild a consensus for change.

Finding ways to diversifycountries' internationalreserves away from the UScurrency is a key part ofFrench President NicolasSarkozy's plan to sketch out ablueprint for a more stablemonetary system duringFrance's year-long presidencyof the Group of 20 nations,which began this month.

In the wake of the 2008-09global financial crisis, France,which has long argued dollarvolatility damages Europeaneconomies, is finding commoncause with emerging powerssuch as China and Brazil.

"The time may have finallycome because it's not justFrance thinking about this: thedollar is becoming destabilis-ing for a lot of countries," saidDeAnne Julius, chairman ofLondon's Chatham Houseinstitute of internationalaffairs. "France has a goodchance of making significantprogress."

French officials say theiragenda hinges on convincingthe Chinese, whom Sarkozyhas assiduously courted, toagree to a greater role for theyuan as a reserve currency.This would initially be done byhaving the yuan enter theSpecial Drawing Right, anInternational Monetary Fundaccounting tool currentlybased on the values of the dol-lar, euro, yen and sterling.

China's central bank chiefproposed last year that theSDR be turned into an interna-tional currency based on JohnMaynard Keynes' 1944 idea ofa "Bancor". The idea won

backing from Brazil at a G20summit meeting last month.

No one expects a "big bang"move to a supranational cur-rency; the shift away from thedollar would take many years,possibly decades. But Francewants to revive the debate onthe role of the SDR as part of agradual move toward a multi-polar currency system.

"There are some concretethings we can do," said a sen-ior French official. "For exam-ple, what timeframe do we setfor the renminbi to enter theSDR? Next year? In 10 years?This is something we candecide. The Chinese are readyto discuss this."

ANXIETY IN BEIJINGThe US Federal Reserve's

decision this month to conductmore quantitative easing,effectively printing money tobuy government debt, wasstrongly criticised as destabil-ising by many governmentsand may well have strength-ened France's case.

In particular, the US decisionfanned anxiety in Beijing --which has some two-thirds ofits $2.65 trillion foreignreserves in the US currency --that the dollar is no longer astable store of value.

Wading into the debate onhow to improve the globalmonetary order, ChinesePresident Hu Jintao called at aSeoul G20 summit this monthfor "an international reservecurrency system with stablevalue, rule-based issuance andmanageable supply".

Amid fears that tensionsbetween Washington andBeijing might provoke a "cur-rency war", in which govern-ments would battle each otherto influence exchange rates totheir advantage, the Seoulsummit asked France's presi-dency to develop "indicativeguidelines" to measure if coun-

tries had excessive currentaccount surpluses or deficits.

"This is more useful politi-cally than economically,because it helps take the pres-sure off the currency issue,"Julius said.

China, with its attentiongripped by domestic inflation,has allowed its currency toappreciate modestly in the lastfew months while angrilyrejecting pressure fromWashington to quicken thepace.

Beijing has already takensteps to internationalise theyuan, allowing trade to be set-tled in yuan and permitting thismoney to be reinvested in itsdomestic bond market, as wellas establishing renmimbi swaplines with several centralbanks.

It says it aims to buildShanghai into an internationalfinancial centre by 2020,implying the yuan will be fullyconvertible by then. Butincluding the yuan in the SDRcould encourage Beijing toaccelerate its capital accountliberalisation, as Washingtondemands.

"The smart thing for the IMFto do would be to put the yuanin the SDR basket today," saidJim O'Neill, chairman ofGoldman Sachs AssetManagement. "Then the SDRwould also have some obviousappeal to the private sector:this could quite rapidly openthe door to less dependence onthe dollar."

The SDR currently accountsfor just 4 per cent of globalreserves, or $308 billion. Thefour currencies which make upthe SDR account for only 46per cent of world trade, accord-ing to ING bank. As theworld's largest exporter, Chinawants to be admitted.

A five-year review of theSDR basket completed this

month excluded the yuan againbecause it is not freely usableas a reserve currency and intrade, but the IMF said theissue would be kept underreview. "I now feel morerelaxed that the renminbi canbe brought into the SDR beforefull capital account convert-ibility," Julius said, adding thata revision of the SDR over thenext year might decide initiallyto set the yuan's weight ataround 5 per cent.

"EXORBITANTPRIVILEGE"

France, an architect of theeuro, has a tradition of drivingmonetary change. In the 1960s,Charles de Gaulle's govern-ment slammed the dollar's"exorbitant privilege" as areserve currency and pressuredWashington to drop the dollar'slink to gold by swapping dol-lars for tonnes of US bullion.

In Sarkozy and his charis-matic Economy Minister

Christine Lagarde, France hasa formidable negotiating teamto press for change. In a visit toParis this month, Hu agreed toSarkozy's request for China tohost a conference on monetaryreform next spring.

"China supports the reformagenda in principle," saidWang Yong of BeijingUniversity's Centre forInternational PoliticalEconomy. "But there's no signChina is willing to pay theprice to confront the US on thisif it strongly resists reform," headded.

A source close to French pol-icy said it might be hard to getWashington, which remainsthe largest IMF shareholderand has a veto over key deci-sions, to let the yuan enter theSDR quickly as Washingtonwould then lose an importantbargaining chip with China.

In the longer term, plans toincrease the role of the SDR as

a reserve currency face otherproblems.

Firstly, the system lacks liq-uidity and would need a mas-sive issuance of SDRs, whichcreditor nations have tradition-ally resisted. However, theincreased clout of emergingeconomies at the IMF, afterthis year's deal to give themmore voting power in the body,might ease this process, whichcould be achieved via regularallocations set by the Fund.

Secondly, the private sectorwould need to be allowed tohold SDRs. This could beachieved by permitting com-mercial banks to open SDRaccounts, by encouraging com-modity producers to quoteprices in SDRs, which wouldlessen volatility, and by man-dating the IMF to set up aclearing system, Julius said.

Thirdly, the reform wouldrequire the IMF to play a fargreater role as the world's

"central bank" administeringglobal reserves. Supporters ofchange argue this could havethe benefit of encouragingemerging countries to lowertheir high levels of reserves,which bring no economic ben-efit to their populations.

It is not clear, however,whether events will permitFrance to focus consistentlyenough on the SDR at G20meetings to lay the base forsignificant reform. If an inter-national bailout of Ireland failsto halt the contagion spreadingthrough the European debtmarket, France's G20 agendacould be hijacked. "If the eurozone crisis doesn't calm down,everyone will be in emergencymode. Questions of globalimbalances and monetaryreform will be overtaken bymore pressing issues," saidDeutsche Bank's seniorEuropean economist GillesMoec. -Reuters

FRENCH G20 AGENDA TO

PUSH BIGGER YUAN ROLE* SARKOZY HAS RECEPTIVE AUDIENCE AS G20 PRESIDENCY BEGINS * FRANCE, CHINA BOTH KEEN TO

INTERNATIONALISE THE YUAN * LATEST US QUANTITATIVE EASING STRENGTHENS FRANCE'S CASE

* TECHNICAL, POLITICAL OBSTACLES TO EXPANDED USE OF SDRS

Ireland's nationalist SinnFein party is having a goodcrisis.

Once the political wing ofthe now-dormant IrishRepublican Army (IRA), theparty won a fifth seat inDublin's parliament at theexpense of the government onFriday after its anti-austerityrhetoric struck a chord with thepeople of county Donegal.

Known internationally for itscampaign against British ruleduring decades of violence inNorthern Ireland, the leftwingparty is picking up momentumsouth of the border amid publicanger at a financial meltdownthat has forced one of Europe'sformer economic stars into thearms of the IMF and EU.

An opinion poll showed itcould pick up a record 12 seatsin the nextgeneral election inthe Republic, likely early nextyear, making it the second-

largest opposition party inDublin's parliament afterCowen'sFianna Fail are pushedfrom power.

Not bad for an organisationwhose members were official-ly banned from speaking onIrish media until 1993.

"I'm around long enough toknow that you don't judge themood of the country on whathappens in one by-election butI do think we are going to see achanged political landscape atthe next general election," SinnFein's Martin McGuinness,former IRA commander, nowdeputy first minister inNorthern Ireland, told Reuters.

"I think Sinn Fein are goingto be very much at the heart ofthat."

Once viewed as a pariah bothnorth and south of the border,Sinn Fein has swapped theArmalite rifle for the ballotbox and now runs Northern

Ireland in partnership with itsformer foes.

Its electoral track record inthe Republic has been less stel-lar. Despite predictions that itwould double its representa-tion, Sinn Feinlost one seat atthe last parliamentary poll in2007, when Ireland's propertyboom was still in full swing.

VIOLENT PASTNow, two years into a six-

year cycle of swingeing taxhikes and spending cuts, andwith the worst recession in theindustrialised world undertheir belt, some Irish peopleare taking a second look atSinnFein's leftwing views.

The party has long arguedthat banks should be nation-alised and bondholders burned.Some of those policies maywell materialise under anIMF/EU bailout, expected toleave the state in control ofthree of the country's top banks

and possibly offer loss-makingswaps to some bondholders.

Sinn Fein is the only party tocall for delaying a 2014 dead-line for getting the deficitunder control to allow moreeconomic growth. The viewwas endorsed by the country'smost prestigious economicthink-tank earlier this month.

An IMF/EU rescue packageis likely to deal a killer blow atthe next election to FiannaFail, which has dominatedIrish politics during the 90years since it won independ-ence.

The loss of sovereigntyimplied by accepting a bailoutis humiliating for a country

where politics are still cast interms of the struggle againstBritish colonial rule. It is a par-ticular loss of face for FiannaFail, which sees itself as theembodiment of Irish national-ism.

Keen to capitalise on themood in the south, Sinn Fein'sPresidentGerry Adams has saidhe will contest the Republic'snext election. He is not takingany chances, standing in a safeseat in the border county ofLouth.

"I don't think he resonatesterribly well in the south.There is a history, there is abaggage and ultimately he isnot seen as part of the systemwe have here," said DavidFarrell, professor of politics atUniversity College Dublin.

Under Ireland's political sys-tem of proportional represen-tation, Sinn Fein needs toattract vote transfers from sup-

porters of other parties, andtheir history of being associat-ed with violence may cap theirgains.

Donegal, where Sinn Fein'scandidate trounced a FiannaFail member for a vacant seaton Friday, borders NorthernIreland and its voters wouldhave a soft spot for nationalistparties that is unlikely to trans-late to many other areas.

Three of Sinn Fein's fiveMPs are based in border coun-ties and the party may struggleto win support among middle-class voters wary of their vio-lent roots and anti-EU stance.

"I would hate to see SinnFein have any power at all. Idon't support them and I don'tknow anyone who does. Theyare a subversive party, itwould be anarchy if they gotin," said Dubliner DonalNeeson, 50, who works infinancial services. -Reuters

Ireland's difficulty is Sinn Fein's opportunity

Listening to some -- primarilyAnglo-Saxon -- commentators,one gets the impression that the

euro zone risks collapsing under theweight of debt in its weakereconomies.

Analysts are discussing the idea thateconomic differences between coun-tries may be too wide for the zone tosurvive, and that it may have to breakitself up.

Markets themselves, however, aretelling a different story. Individualfinancial instruments, such as sovereignbonds and bank debt in the weakestcountries, have been hit hard by defaultfears. But movements in most marketsshow most investors do not think theeuro zone faces the dangerous andexpensive prospect of a break-up.

Indeed, correlations between mar-kets suggest investors are not nearly

as afraid of a systemic crisis in thezone as they were back in May andJune, when the panic over Greece'sdebt problems was as its height.

Consider the euro itself. Althoughyields on Portuguese and Spanish 10-year debt are at record highs near 7per cent and 5 per cent, and Ireland isnegotiating an international bailout,the currency has not reacted strongly.

The 30-day correlation between theeuro/dollar exchange rate and thespread of the 10-year Greek govern-ment bond yield over German Bunds-- the risk premium which investorsdemand to hold Greek bonds -- wasminus 0.65 in June but is currentlyminus 0.19.

Minus 0.65 is a fairly strong nega-tive correlation -- heading towards thelimit of minus 1.0 -- and showsinvestors sold the euro heavily in June

because of fears of a Greek debtdefault. By contrast, there is now verylittle correlation between the euro andexpectations for Greek debt.

For Ireland, the correlation hasmoved from minus 0.61 to minus0.29. Also, the euro remains stronghistorically. At around $1.32 anddespite a roughly 7 per cent fall overthe past three weeks, it is still close to13 per cent stronger that it was at thedepth of the Greek crisis. It is farabove its lifetime average of $1.188,and above its average for the past 200days, which is a key level for curren-cy traders and is now at $1.3131.

Nor does market positioning implyfears of a currency zone break-up. Thelatest Commodity Futures TradingCommission figures actually show asmall net long position in the euro.

These are figures for the week to

Nov. 16, and the next set of data, nor-mally released on Fridays, may showa shift. But the reaction in the curren-cy options market to the Irish crisishas been tame.

According to IFR, implied volatilitylevels for the euro are still well belowthose seen in May and June. Impliedone-month vol hit a high of 18.75 percent in late May and 12-month volreached a peak of 15.1 per cent. Theequivalent figures now are near 14 percent, a level that suggests some con-cern but not a huge amount.

In the meantime, there has beendemand for euro "puts" -- optionswhich provide the right to sell the euroat a given price. This suggests expec-tations for further euro weakness. Butthe 1.65 per cent premium currentlydemanded over "calls", the right tobuy, is much cheaper than the 3.0 per

cent seen in June.It is a similar story on European

stock markets, where most companiesare being buoyed by signs of surpris-ingly robust German growth and gen-eral improvement in the euro zone, aswell as healthy corporate cash bal-ances.

The EuroStoxx index, a broadgauge of euro zone equities, is about 9per cent higher than it was in earlyJune despite falls in the past fewweeks.

Correlations between the index andbond spreads also show that whilethey are not insignificant, the eurozone bond crises are not overwhelm-ing equities. The 30-day correlationwith changes in bond spreads is nowminus 0.38 for Greece and minus 0.36for Ireland. In May, the Greek correla-tion was minus 0.86.

While the prices of bonds issued byIrish and some other banks have tum-bled, the euro zone corporate debtmarket remains fairly healthy. TheiTraxx Europe index for investmentgrade euro zone debt is at 111 basispoints compared with 141 bps in June;a lower number implies more riskappetite. The iTraxx Crossover indexof more risky corporate "junk" bondsis at 494 bps, down from 633 bps inJune.

There are at least two major reasonsfor the easing of markets' fears aboutthe euro zone as a whole since June.One is that the European Union hasset up a formal mechanism to handledebt crises, the 440 billion euroEuropean Financial Stability Facility(EFSF), and the Irish bailout nowunderway shows the EU is willing andable to use it. -Reuters

Markets far from expecting euro zone break-up

11Monday, November 29, 2010

International & Continuation

CONTINUATION

TAEAN: A South Korean army soldier walks near a barbed wire fence during anexercise before a marines landing drill at Mallipo beach.-Reuters

ABIDJAN: Polls opened inIvory Coast on Sunday for apresidential election run-offwith fears of violence mar-ring hopes that the vote willdraw a line under a decade ofpolitical crisis and economicstagnation.

Incumbent PresidentLaurent Gbagbo, a formerhistory professor, facesAlassane Ouattara, a formerprime minister and seniorIMFofficial, in a race that istoo close to call and hasrekindled simmering tensionsin the divided country, theworld's top cocoa grower.

An overnight curfew,announced by Gbagbo earlierin the week, ended an hourbefore polls opened at 0700GMT and appeared to haveled to delays and a lowerearly turnout in many pollingstations in the capital.

But in Bouake, in the northof the country that was seizedduring a 2002-3 war by rebelswho still run the administra-tion, the curfew was ignoredand polls opened on time.

"I came to vote so we canhead towards peace," saidDiallo Aicha, who voted earlyin the northern town.

Gbagbo and Ouattara won38 and 32 percent of the firstround vote respectively. Therace to secure the presidencyhas brought back to the fore a

north-south divide that was atthe heart of the war and sub-sequent delays in holdingpolls.

"The stakes are very high.The first round was verygood. (But) we have seensome radicalisation," saidGilles Yabi, an independentpolitical analyst.

After talks on Saturday withBlaise Compaore, BurkinaFaso's president and the medi-ator in the Ivorian crisis, bothcandidates reiterated a vow toaccept the results.

But supporters on bothsides have a history of takingto the streets for theirdemands. "I'm afraid we canexpect some degree of vio-lence," Yabi said.

At least three people wereshot dead by police in themain city ofAbidjan onSaturday, a local official said.

VOTE-RIGGING FEARGbagbo's army chief said

on Saturday the curfew wouldrun until Wednesday to helpstop further loss of life fromclashes that have killed atleast seven people in all.

But opposition parties haverejected the curfew, whichGbagbo's rivals fear will beused to rig the vote.

During talks late onSaturday the election com-mission also expressed itsconcern, calling on Gbagbo

to ease security measures asthey risked having an impacton voting.

Compaore said there hadbeen talks to soften the meas-ures but gave no furtherdetails.

A successful poll shouldpave the way for reforms tohelp an ailing cocoa sectorand lead to further investmentin a nation that was once WestAfrica's brightest prospectbut whose economy has beenweighed down by years ofpolitical uncertainty.

Violence following the pollwould affect the delivery ofcocoa to the country's twomain ports.

Ouattara has secured thesupport of Hennri KonanBedie, who came third in thefirst round with 25 percent.

But doubts remain overwhether enough of Bedie'spredominantly southern sup-porters are ready to throwtheir weight behind Ouattara,who is from the north and hasbeen accused of backing therebellion.

Voting will also be closelywatched by holders of IvoryCoast's $2.3 billionEurobond, which tradedbelow 10 percent for the firsttime following the peacefulfirst round but has crept backup to around 10.3 percent.-Reuters

Ivory Coastgoes to tense

presidential vote

LONDON: BP said it hadagreed to sell its stake inArgentina-based oil and gasgroup Pan American Energy(PAE) toBridas Corp, half-owned by China's CNOOC,for $7 billion, as it raises cashto pay for the Gulf oil spill.

The planned sale of the 60percent interest, whichsources previously said wasunder discussion and whichwas for a price in line withanalysts' estimates, brings to$21 billion the amount thatBP has raised, or agreed saleson, in recent months.

BP has said it expects thecosts of the Gulf of Mexicooil spill -- theUnited States'worst ever -- to hit $40 billionand said it would sell assetsworth $25-$30 billion by theend of next year to pay for it.

Bridas already owns a 40percent stake in PanAmerican Energy, which BPsaid was Argentina's second-largest producer of oil andgas.

Bridas was owned entirelyby the family of Argentinetycoon Carlos Bulgheroniuntil CNOOC agreed to buy a

50 percent stake for $3.1 bil-lion in March.

The 60 percent stake BP isselling represents reserves of917 million barrels of oilequivalent (boe) and produc-tion of 143,000 boe per day.

The transaction excludesthe shares of Pan American'sBolivian unit, BP said.

U.S. oil major Exxon MobilCorp is seeking to sell itsArgentine unit Esso, whichcontrols hundreds of servicestations and a refinery, localdaily El Cronista reported lastmonth.-Reuters

BP to sell PanAmerican stake

to Bridas for $7bn

CAIRO: Egyptians voted onSunday in a parliamentaryelection that is widely expect-ed to deal a setback to the gov-ernment's main rival, theIslamist Muslim Brotherhood.

The Brotherhood is targeting30 percent of the lower housewhere it won a fifth of seats in2005 -- its best result -- butanalysts say the governmentwants to squeeze its mostvocal critic out of parliamentbefore a presidential vote in2011.

The results are unlikely tosurprise. President HosniMubarak's NationalDemocratic Party (NDP)always deals a crushing defeatto rivals. Many voters see nopoint voting.

"I won't vote. I don't approveof this regime. Whoever I votefor, the government will put inwho they want," said Shehta,42, who worked in publishingbefore driving a taxi. He didnot want his full name used.

The opposition and rightsgroups said on Sunday morn-ing that the authorities blockedmany monitors enteringpolling stations. The govern-ment has rejected calls by allyand big aid donor the UnitedStates for international moni-tors.

The two-round election inwhich 508 seats are at stake,with 10 more appointed by thepresident, may offer a foretasteof how the government con-ducts next year's presidentialvote. Mubarak, in power since1981, has not said if he willrun again.

The government says votingwill be free and fair. Criticssay the NDP hogs the media,hands out gifts and pressuresvoters at polling stations.

Voting began at 8 a.m. (0600GMT) and ends at 7 p.m.(1700). The run-off will takeplace on Dec. 5 for districtswhere no candidate won morethan 50 percent in the first leg.

Almost an hour after pollswere due to open, about 20voters were still waiting out-side Qassem Amin polling sta-tion in the Nile Delta city ofTanta.

"The station should haveopened already. I like to votein the morning when things arestill quiet. If we wait anylonger, you may end up gettingcaught in the middle of vio-lence," said Wagdy MohamedAbdullah, 48, a teacher.

Violence is a common fea-ture of Egyptian elections. In2005, rights groups andobservers said security

blocked many backers of theBrotherhood and other opposi-tion groups from enteringpolling stations to vote, whichled to clashes.

Four people have alreadybeen killed and 30 wounded inviolence leading up the vote,according to the EgyptianOrganisation for HumanRights. Fourteen people werekilled during the 2005 poll.

The government blameselection-related violence onrivalry between candidates andclan loyalties. The InteriorMinister has pledged to dealwith anyone behind such vio-lence.

The NDP says the electoratehands it big majorities becauseit is the natural party of gov-ernment and voters approvepolicies which have broughtyears of strong economicgrowth.

The party is fielding farmore candidates than there areseats available in an effort tocrowd out the Brotherhood.

The government wants ahigh turnout to give legitimacyto the vote. The officialturnout in the last lower houseelections in 2005 was 22 per-cent, although rights groupssaid it was no more than 12percent.-Reuters

Egypt vote seencutting Islamistparliament seats

NK “readiesmissiles”,

Beijingseeks talks

YEONPYEONG: NorthKorea has placed surface-to-surface missiles on launch padsin the Yellow Sea, Yonhapnews agency said, as the UnitedStates and South Korea beganmilitary drills and China calledfor emergency talks.

China made clear that thetalks would not amount to aresumption of six-party disar-mament discussions whichNorth Korea walked out of twoyears ago and declared dead.South Korea said it would care-fully consider China's sugges-tion.

South Korean President LeeMyung-bak had told a visitingChinese delegation thatBeijing, North Korea's onlymajor ally which is traditional-ly reluctant to criticise thereclusive regime, should domore to help.

China, which agreed withSouth Korea that the situationwas "worrisome", suggestedthe emergency talks forDecember among North andSouth Korea, host China, theUnited States, JapanandRussia.

Japan was non-committal."We want to respond cautiouslywhile cooperating closely withSouth Korea and the UnitedStates," Kyodo news agencyquoted Deputy Chief CabinetSecretary Tetsuro Fukuyama assaying.-Reuters

Colombo on reciprocal basis and urged the Sri Lankan leader-ship to give it a serious thought as a vehicle to improve the tradeand commerce between the two counties.

During the meetings President Zardari also invited Sri LankanParliamentarians, Buddhist monks, traders, intellectuals and polit-ical leaders to visit Pakistan to cement the ties.

Pakistan will participate in the exhibition next year in Kandy inSri Lanka of Gandhara civilisation be sending Gandhara artifactsand relics of the Buddhist civilization for display at the exhibition.

Defence cooperation also figured in the talks with the two sidesagreeing to take it to continue it on a sustained basis but theemphasis was kept focused on enhancing economic and traderelations between the tow countries.

The President also congratulated the Sri Lankan leaders ondefeating militancy and terrorism and said that Pakistan too wasdetermined to fight and defeat the menace.

During the delegation level talks the Sri Lankan President saidthat the people and government of Pakistan had extended solidsupport to the Sri Lankan people it their fight against militancyand insurgency adding that "Sri Lanka will never forget that sup-port". He said that Sri Lanka sincerely hoped that Pakistan to willsoon defeat the militants and recover in near future from the aftereffects of militancy.

Foreign Minister Shah Mahmood Qureshi, Defence MinisterChaudhry Ahmad Mukhtar and Chairman Board of InvestmentSaleem Mandviwalla, besides senior government officials of theministries of Foreign Affairs and Commerce, were present duringthe meetings. -Agencies

Continued from page 1No #1

wreckage of the plane scattered in over half a kilometre area.Commander Salman Ali said that there was no loss of life on theground. The fire was brought under control.

He said that the battalion of Pakistan Navy cordoned off thearea. The electric supply of the residential area was cut off as aprecautionary measure to prevent any fire.

Meanwhile, Civil Aviation Authority (CAA) has started a probeinto the Sunday's cargo plane crash.

Air Commodore Khwaja, head of the CAA investigation board,visited the site of crash on Sunday morning.

Talking to the media representatives, Khwaja said the plane hadcrashed in the air and two of its engines were shut at the time ofcrash. The Black Box and Voice Recording System of the aircraftwere yet to be found, he confirmed. He said the plane crashed inhighly protected area and there was, therefore, no possibility ofevidences pertinent to investigation being lost.

Continued from page 1No #2

According to finance ministry sources summary has been sent toprime minister for appointment of Farrukh Hassan Khan as chairmanSECP. Finance Minister Dr Abdul Hafiz Sheikh has recommendedFarrukh Hassan Khan to be appointed as chairman.

Three commissioners are appointed in SECP at present and twoamong them would complete their service period during the currentmonth. While Tahir Mehmood, commissioner law division had beenappointed as commissioner for three years during the month ofOctober. Overall 7 commissioners have been appointed in SECPwhile it was mandatory that minimum 3 commissioners be appointed.During the last several years, strength of commissioners has not beincreased while a crisis is feared to surface following the retirementof chairman SECP Suleman Ali Sheikh and Tariq Asif Hussain. It maybe recalled that commissioner Tariq Asif Hussain had sent applicationto prime minister against Suleman Ali Sheikh chairman for misusingthe powers. Prime Minister had constituted committee led by secre-tary establishment Ismail Qureshi to probe into matter but no meetingof the committee has been convened so far.

Continued from page 1No #3

period last year. Furthermore, power sector witnessed repatriation of$29.8 million against $20.1 million in the identical period last year.Likewise, oil and gas exploration companies have transferred $16.7million profit/dividend in 4MFY11 by depicting 49.8 per cent increaseagainst $11.1 million transferred in the same preceding period.

On the other hand, major decline in repatriation came from food,chemical, trade, storage, fertiliser, textile and beverages sector. Themajority of the sectors were badly affected by drop in economicgrowth and corporate profitability.

Continued from page 1No #4

Clearing Company of Pakistan Limited (NCCPL) data.Positive activities continued at local bourses as KSE 100-Index

closed by gaining 1.63 per cent or 179.02 points at 11,145.02.Weekly average volume increased by 70.6 per cent to 118.54 mil-

lion shares against 69.47 million shares traded week.However market only performed well on the first trading day of the

week while for the next four days market remained dull with thin vol-umes, on fears of rise in interest rates in the monetary policy, whichis to be announced today.

During the week, offshore investors opted for buying fresh positionas foreigners bought shares worth $27.48 million and sold $15.04million resulting in net buying of $12.44 million during the week.Surprisingly, none of local category invested on net buying basis onlast week. Biggest weekly selling was witnessed from Mutual Fundswhich offloaded $19.33 million of shares in the local bourse againstthe buying of $13.22 million, thus turning the net selling worth of$6.11 million. Moreover, banks and local individuals also net ejected$2.39 million and $1.20 million respectively.

Continued from page 1No #5

which is neighboring Turkmenistan. Turkmenistan, a former Soviet republic bordering Afghanistanand Iran, plans to triple gas production to 230 billion cubic meters over the next two decades and fore-casts a more than six-fold increase in oil output, to 67 million tons per year. -Agencies

Continued from page 12No #6

and Helmand thought Afghan forces would not be able to provide adequate security when foreign forceswithdraw, and 81 per cent thought al Qaeda would return to Afghanistan if the Taliban regained power.With Obama to review his Afghanistan war strategy next month, attention is now focused on a withdraw-al timetable. US and Nato leaders agreed at a summit in Lisbon this week to accept Afghan PresidentHamid Karzai's timetable for a 2014 security handover. The readiness of Afghan forces, which now num-ber about 258,000 and are to be ramped up to 306,000 by October 2011, is a crucial part of that equation.There was also deep-seated suspicion between those in Kandahar city, which was the focus of securityefforts over the past year or more, and rural areas like Panjwai and Zhari were such efforts began morerecently. "If you're from Kandahar and you go to a district like that, you'll be slaughtered," said Pida, fromthe governor's office.

Abdul Jabar, who sells fruit from a handcart, said things had improved in Kandahar city but security out-side the city and the slow build-up of Afghan forces were still worrying. "They have to increase the num-ber of Afghan recruits and they have to be better equipped. If our own government forces are strengthenedenough, maybe the Taliban can't take over," he said. Some supported bringing the Taliban into the govern-ment, or creating enough economic opportunity to lure young Afghans away from the insurgency. Otherssaid cash was the answer. -Reuters

Continued from page 12No #7

debt troubles are far from over, financial services firm Dubai Group recently missed two payments onseparate loans. -Reuters

Continued from page 12No #8

had declared steps taken on Nov 3, 2007 by former president Pervez Musharraf as "illegal and unconsti-tutional" under Article 279 of the Constitution. The judgment came after the 14-judge larger bench headedby Chief Justice Iftikhar Muhammad Chaudhry had completed hearing of constitutional petitions regardingthe PCO judges, appointments of judges in the superior judiciary and steps taken under the PCO. -Online

Continued from page 12No #9

"We are loyal to the party, the PPP loyal workers want to see Shaheed BB's murderers behind the bars",she demanded. "We will get the party free from the clutches of those who are working against the party'sphilosophy. The party would be run according to the legacy of Z. A. Bhutto and Shaheed MohtarmaBenazir Bhutto", she added. Naheed Khan questioned that who is President Zardari to pardon the killersof Benazir Bhutto. She warned that those if targeted the loyal Jiyalas of the party and her workers, wouldface the consequences. The PPP leader said that she is neither scared nor coward and added that she didnot accept the attitude spreading disappointment in the party workers.

Zulfiqar Ali Bhutto laid foundation of Pakistan Peoples Party in Lahore on November 30, 1968, but theannoyed workers of the party organized themselves under the leadership of Senator Safdar Abbasi andNaheed Khan, the Political Secretary to the slain PPP Chairperson Benazir Bhutto in Lahore. -Agencies

Continued from page 12No #10

on them for imports. "Pakistan only sends poor quality and unhealthy things, without any controlsimposed by the Afghan government," said Rahim Khan, a shopkeeper in Afghanistan whose general storeis packed with goods from his unloved neighbour.

"This agreement is totally to the advantage of Pakistan. They should allow Afghan traders to bringIndian goods into the country, why are we forced to just use Pakistani products?"- Reuters

Continued from page 12No #11

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KANDAHAR: Nato's planned with-drawal of combat troops fromAfghanistan in 2014 will likely mean aTaliban takeover and civil war, residentsin the heartland of the insurgency fear,echoing a worrying recent report.

Afghans in the southern city ofKandahar said Afghanistan's securityforces would likely collapse when for-eign combat troops left, even if theycontinued providing training and equip-ment.

Kandahar province is the birthplace ofthe Taliban and has long been the focalpoint of Afghanistan's bitter insurgency.

"It's 100 per cent possible that therewill be a civil war," said PidaMuhammad, a worker at the Kandahargovernor's palace.

"Afghans cannot have union amongthemselves. That could only happen by amiracle, only Allah can do it. It's beyondour comprehension," the 26-year-oldsaid.

Kandahar is one of Afghanistan's mostfertile areas and is an important elementin the rich, illicit opium poppy trade thathelps funds the insurgency, as well as a

major road trade hub.Security in Kandahar city has

improved dramatically, US and Natocommanders say, especially after thebulk of 30,000 extra US troops orderedby President Barack Obama lastDecember were sent to fight in thesouth.

Residents say bombings have taperedoff in recent weeks but, even thoughthankful for security gains, Kandaharisworry that Afghanistan could again beplunged into escalating fighting.

"It will take at least 15 years or morefor the Afghan security forces to standon their own," said Nadeem Akbar, aproject officer for the US Agency forInternational Development.

Earlier this month, a report by theInternational Council on Security andDevelopment policy think tank foundthat 92 percent of Afghan men surveyedin Kandahar and neighbouring Helmandknew nothing of the September 11,2001, attacks that precipitated the war.

The ICOS report found 61 percent ofthe 1,000 men surveyed in Kandahar

See # 7 Page 11

Afgan civil warfeared after Nato

DUBAI: The emirate of Dubai mayconsider selling shares in government-owned companies as it continues torestructure those hit hard by the finan-cial crisis, top financial officials said onSunday.

The emirate, a regional financial andtrade hub, suffered a blow to its reputa-tion a year ago when state-linked con-glomerate Dubai World announced itwould ask creditors for a standstillagreement on almost $25 billion in debt.

"Dubai World is now on sound finan-cial footing," Sheikh Ahmed bin Saeedal-Maktoum, chairman of DubaiSupreme Fiscal Committee, told a newsconference.

In the past year, Dubai World man-aged to reach a restructuring deal withcreditors, allowing the government totap into improved investor confidenceto issue a $1.25 billion bond inSeptember.

Prized assets such as DP World, theAtlantis Hotel and casino operatorMGM Resorts International were pre-sented under the restructuring as poten-

tial assets that could be sold to the pub-lic to help raise cash.

There is also keen interest in otherstate-linked assets such as Emirates air-lines and Dubai Electricity and WaterAuthority (DEWA).

"We are working on opening up thecapital of leading companies to our pub-lic," he said.

Property developer Nakheel, which istrying to reach agreement on a proposedrestructuring plan, is also returning tohealth, said Faisal Mikou, the executivevice president of the InvestmentCorporation of Dubai.

"We are making very good progresson the restructuring. Nakheel's financialand operational restructuring is goingaccording to plan," Mikou said.

Nakheel plans to issue a sukuk, orIslamic bond, to its trade creditors in thefirst quarter of 2011, he said.

Despite improving balance sheetsamong Dubai's state-linked companies,significant challenges remain.

In a reminder that Gulf Arab emirate's See # 8 Page 11

Dubai may sellshares in SOEs

ISLAMABAD: A five-member benchof the Supreme Court will resume todayhearing of contempt of court matteragainst a number of former judges, whotook oath under the ProvisionalConstitutional Order of 2007 in defi-ance of its restraining order of Nov 3,2007.

The bench comprising JusticeMuhammad Sair Ali, Justice MahmoodAkhtar Shahid Siddiqui, JusticeJawwad S Khwaja, Justice Khilji ArifHussain and Justice Tariq Parvez, willdecide the matter of contempt of court(determination of legal question/pro-ceedings) against certain former judgesof the superior judiciary.

The bench will take up the issue

against Justice retired Iftikhar HussainChaudhry, Justice Khurshid AnwarBhinder, Justice Hamid Ali Shah,Justice Zafar Iqbal Chaudhry JusticeHasanat Ahmed Khan Justice SyedShabbar Raza, Justice Yasmin Abbasey,Justice Jehan Zaib Rahim, Justice SayedZahid Hussain, Justice (Retd) AbdulHameed Dogar, Justice Syed SajjadHussain Shah, Justice (Retd) IftikharHussain Chaudhry, Justice Syed HamidAli Shah and Justice Jehanzaib Rahim.

The bench is expected to adjudicateupon the pending issue of proceedingsin civil miscellaneous appeals and cer-tain pleas against order of the Registrar.

On July 31, 2009, the Supreme Court See # 9 Page 11

Contempt casehearing resumes

SC takes up PCO judges issue today

Gen Kayanicommencessecond termas COAS

ISLAMABAD: Chief of ArmyStaff, General Ashfaq ParvezKayani after completing thefirst-term Sunday, has startedservices for the second term ofthree years as Army Chief.

General Ashfaq ParvezKayani has been appointed as

Army Chief by the former pres-ident Pervez Musharraf onNovember 27, 2007.

Army Chief has completedhis tenure Sunday onNovember 28, 2010 after com-pleting three years.

Prime Minister Syed YousufRaza Gilani announced thethree-year extension in tenureof General Kayani.

In a notification issued bySecretary Defence, Athar Aliclearly notified that army chiefto start his duties for next termright after completing previousterm.

Prime Minister on the adviceof COAS has also given exten-sion to Inter ServicesIntelligence (ISI) Chief, AhmadShuja Pasha who completed histerm in June 2010. -Online

KARACHI: A view of destruction at the site of a plane crash after a Russian cargo plane crashed inNaval residential area in Dalmia in Karachi. -Online

Naheedlashes outat Zardari

LAHORE: The disgruntled"Jiyalas" of Pakistan PeoplesParty are trying to organisethemselves under the leader-ship of Senator Safdar Abbasiand Naheed Khan.

The PPP workers, who callthemselves 'Nazariyatiactivists' of the party Sundayheld a separate workers con-vention in Lahore on the occa-sion of party's foundation day.

Lashing out at the incumbentPPP-led federal governmentand Co-chairperson of the partyPresident Asif Ali Zardari,Naheed Khan said she did notaccept the democracy ofPresident Zardari and addedthat democracy and reconcilia-tory policy by the President iscreating revolt in the partyranks.

Naheed Khan said, "Presidentshould keep his democracy andreconciliation with himself as Ido not accept his democracy.Tracing out the murderers ofBenazir Bhutto's assassins is ajustice and a jigsaw puzzlewhich is still to be resolved".

Strongly criticizing the PPPleaders, Naheed Khan allegedthat the PPP leaders are blindand deaf as they do not raise thequestion about the murderers ofBenazir Bhutto before thePresident and the PrimeMinister.

See # 10 Page 11

TEHRAN: The second phase ofTurkmenistan-Iran gas pipeline wasinaugurated in the northeastern cityof Sarakhs in Khorassan Razaviprovince Sunday by the presidents ofIran and Turkmenistan.

President Mahmoud Ahmadinejadand his Turkmen counterpartGurbanguly Berdimuhamedowattended the inaugural ceremony ofthe project which is to transfer

Turkmenistan's gas to northern andnortheastern provinces of Iran.

The 1,024-kilometer project wascompleted in two phases. The first524-km-long phase was commis-sioned last year.

The second phase, which wasinaugurated today, is 500 km long.

Sarakhs is located in the northeast-ern part of the country, neighboringTurkmenistan.

Supplying gas to 16 northern-provinces of the country, creating anew corridor for swap and transitinggas to East European markets areamong advantages of the 1.2- bil-lion-dollar project.

Oil Minister Masoud Mir-Kazemiand Foreign Minister ManouchehrMottaki are accompanying PresidentAhmadinejad in his tour to Sarakhs

See # 6 Page 11

Iran-Turkmen gas project enters 2nd phase

KABUL: A deal to open new exportmarkets for Afghan products, by cre-ating a tax-free transit corridor toIndia through Pakistan, is lopsidedand may cement Islamabad's resent-ed grip on the Afghan economy,traders and officials say.

The US-sponsored transit agree-ment which comes into effect nextyear allows Afghan trucks to drivetax free across Pakistan up to theIndian border with products for salethere -- but they cannot load up withIndian exports for the return journey.

Instead, Afghan traders must buyproducts made in or shipped intoPakistan ensuring Pakistani mer-chants do not lose their foothold in amarket worth billions of dollars inannual sales.

"We couldn't insist on bringingIndian goods to the country fromPakistan's border or they would nothave been interested in signing it,"said Mozamel Shinware, head ofInternational Trade in the Ministryof Commerce.

Afghanistan also agreed to allowPakistan traders to seek routes tocentral Asia along Afghan roads,Shinware said.

The long-awaited agreement hasbeen in the pipeline for months andwas hammered out with help from

the United States, which is keen totry and wean Afghanistan off bil-lions of dollars in foreign aid byboosting economic growth.

Afghanistan's total worldwideexports were only $400 million lastyear, and according to Afghanistan'sChamber of Commerce around halfof that was sale of fruit and carpetsto India.

"Pakistan charges a 35 per cent taxon Afghanistan exports to Pakistanitself, but transit is now free," saidChamber of Commerce deputy headKhan Jan Alokozai.

However the trucks will have tostock up with Pakistani goods fortheir return journey. And importingIndian goods via sea is very costly,often more than twice as expensiveas overland transport, sources at thecommerce ministry say.

"Pakistan was very cautious aboutsigning this contract, thinking aboutits revenues first and foremost," saidAfghan finance ministry spokesmanAziz Shams.

"We get 10 per cent of the benefitsfrom the contract, and Pakistan gets90 per cent of the benefits," he said.

Afghanistan is the largest buyer ofPakistan goods ranging from fooditems to construction materials,worth $4 billion a year, Shams

added.Islamabad says Afghanistan is the

country's third biggest market,although it put trade at $1.45 billionfor the 11 months from July 2009.The difference may be due to smug-gling.

The trade deal should provide asignificant new outlet for Afghangoods as the Kabul government andits foreign partners struggle torebuild an economy crippled bydecades of war.

India is a relatively short truckjourney away and in 2003 signed apreferential trade agreement withKabul, one of only two such bilater-al deals Delhi has agreed.

A strengthening insurgency andweak infrastructure have meantAfghans are still heavily dependenton foreign aid.

Unemployment runs at around 40percent, and economists and busi-nessmen say lack of jobs makes iteasier for militants to recruit fightersto their ranks, so creating businessesand finding markets for Afghangoods is an urgent concern.

But landlocked Afghanistan isdependent on its neighbours foraccess to markets, and its small man-ufacturing base means it also relies

See # 11 Page 11

Trade via Pak bringsless profit to Kabul

Taliban return haunts Afghans

Financial officials make case for recovery