The Financial Daily-Epaper-18-10-2010 by The Financial Daily

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

World powers have no option but talks with Iran

Sunni Ittehad Council to walk for peace

See on Page 12

Govt demotes 19 top officers

See on Page 12

ECP to hear fake degree cases

See on Page 12

See on Page 12 Economic Indicators $16.97bn

Forex Reserves (8-Oct-10)

13.77% $5.18bn

Inflation CPI% (Jul 10-Sep 10) Exports (Jul 10-Sep 10)

$9.03bn

Imports (Jul 10-Sep 10) Trade Balance (Jul 10-Sep 10)

$(3.85)bn $(944)mn $1.72bn

Current A/C (Jul 10- Aug10) Remittances (Jul 10-Aug 10)

$455.10mn

Foreign Invest (Jul 10-Sep10) Revenue (Jul 10-Sep10)

Rs 310bn $55.63bn

Foreign Debt (Jun 10)

Rs 4863bn

Domestic Debt (Aug 10) Repatriated Profit (Jul- Aug 10)

$100.90mn 3.05% 4.10%

LSM Growth (Jul 10) GDP Growth FY10E

$1,051

Per Capita Income FY10 Population

170.80mn

Portfolio Investment SCRA(U.S $ in million) Yearly(Jul, 2010 up to 14-Oct-2010)

48.35

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

-0.87

Daily (14-Oct-2010)

-0.25

Total Portfolio Invest (8 Oct-2010)

2461

PM denies clash of institutions

l Gilani wants to sit with judges to iron out issues l Re-vows to reorganise 8 SOEs ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani Sunday addressed and assured the nation that no clash of institutions is possible during Pakistan Peoples Party term of government. He said that he did not even know about the rumor of the executive order for reinstatement of judges being taken back. In his address, Prime Minister said he remained undeterred while reinstating the higher judiciary.

"We were told that executive order, if promulgated, could invite an application of the Article 6 of the Constitution", the PM added, "but we remained undaunted and undeterred". He also said that ignoring Prime Minister's denial is equivalent to ignoring his constitutional stature. Prime minister also expressed his consent to sit together with the judges to resolve all the conflicts. Prime Minister said that ensuring

speedy justice tops his government's priorities. "Time is testing us again", the PM said, "let us not waste time in futile efforts of survival". He also told the nation that the government has decided to reorganise 8 state-run institutions that are operating in financial deficit. Addressing the nation, Gilani said "the policy of reconciliation will bring political powers and state institutions closer; with public welfare being the

focal point." Prime Minister said he has ordered inquiry into the news report that caused furor so that the nation may know who tried a midnight-assault on relations between the judiciary and the government. He said he denied the news report soon thereafter. The President too termed it false news. "But even then if it is not accepted, then I may remind that we are violating the principles of mutual respect,

which is the soul of Constitution of Pakistan and is Parliamentary in nature," Gilani said. Gilani said being the Leader of the House he had announced restoration of the judges. "If he announces restoration of the judges, it is accepted. Similarly if he denies news, then keeping in view the stature of the position, it too should be accepted on all forums." "If false news is given See # 11 Page 11

NCCPL (U.S $ in million) FIPI (15-Oct-2010)

President rejects Ebad’s resignation

2.88

Local Companies (15-Oct-2010)

-1.30

Banks / DFI (15-Oct-2010)

-0.56

Mutual Funds (15-Oct-2010)

-0.26

NBFC (15-Oct-2010)

-0.21

Local Investors (15-Oct-2010)

-0.63

COALITION SALVAGED

0.07

Other Organization (15-Oct-2010)

Global Indices Index KSE 100 Nikkei 225 Hang Seng Sensex 30

Close 10,431.84 9,500.25 23,757.63 20,125.05

Change 22.82 83.26 94.54 372.59

SSE COMP. 2,971.16 FTSE 100 5,703.37 Dow Jones 11,062.78 *Last Updated 20:00 PST

91.52 23.84 31.79

Staff Reporter/ Agencies

GDR update $.Price PKR/Shares

Symbols

MCB (1 GDR= 2 Shares) 2.60

111.71

OGDC (1 GDR= 10 Shares) 21.09

181.23

2.00

42.97

LUCK (1 GDR= 4 Shares) 1.70

36.52

HUBC (1 GDR= 25 Shares) 9.75

33.51

UBL (1 GDR= 4 Shares)

Money Market Update T-Bills (3 Mths)

06-Oct-2010

12.83%

T-Bills (6 Mths)

06-Oct-2010

13.07%

T-Bills (12 Mths) 06-Oct-2010

13.22%

Discount Rate

29-Sep-2010

13.50%

Kibor (1 Mth)

15-Oct-2010

12.72%

Kibor (3 Mths)

15-Oct-2010

12.99%

Kibor (6 Mths)

15-Oct-2010

13.20%

Kibor ( 9 Mths)

15-Oct-2010

13.61%

Kibor (1Yr)

15-Oct-2010

13.71%

P.I.B ( 3 Yrs)

15-Oct-2010

13.63%

P.I.B (5 Yrs)

15-Oct-2010

13.74%

P.I.B (10 Yrs)

15-Oct-2010

13.78%

P.I.B (15 Yrs)

15-Oct-2010

14.24%

P.I.B (20 Yrs)

15-Oct-2010

14.34%

P.I.B (30 Yrs)

15-Oct-2010

14.53%

Commodities Crude Oil (brent)$/bbl

82.45

Crude Oil (WTI)$/bbl

81.25

Cotton $/lb

109.87

Gold $/ozs

1,372.00

Silver $/ozs

24.29

Malaysian Palm $

960.80

GOLD (NCEL) PKR

38,252

KHI Cotton 40Kg PKR

7,984

*Last Updated 20:00 PST

Open Mkt Currency Rates Symbols

Buy (Rs) Sell (Rs)

Australian $

84.50

Canadian $

84.80

Danish Krone

15.85

16.55

119.10

119.60

Euro

84.80 85.20

Hong Kong $

11.00

11.30

Japanese Yen

1.042

1.068

Saudi Riyal

23.00

23.25

Singapore $

65.40

65.60

Swedish Korona 12.90

13.30

ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani addressing the nation on television and radio. CM KP, CM Balochistan Sardar Aslam Khan Raeesani, PM AJK Sardar Ateeq, CM Mehdi Shah, Raja Riaz and Pir Mazahar ul Haq are also seen. -APP

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

3rd Anniversary

Lenders’ deposits swell to Rs4.71tn

Nation remembers Karsaz martyrs

against Rs3.321 trillion at beginning of the calendar year. Similarly, provisioning grew by 18 per cent to Rs327 billion versus Rs227.7 billion recorded at the beginning of the year 2010. That's why net advances dipped 2.7 per cent to Rs2.96 trillion from Rs3.04 trillion during the period. Due to deteriorating quality of assets, where NPL’s are their at higher level, banks preferred to grow their investment portfolio rather than lending the money to borrowers. This was evident from the fact that investment grew by hefty 9.5 per cent to Rs1.81 trillion compared to Rs1.65 trillion in CY09. IDR ratio surged to nearly 38.33 per cent from 37.4 per cent at CY09. Furthermore, overall balance sheet size of the sector improved by 3.7 See # 9 Page 11

ISLAMABAD: On the eve of the third anniversary of the Karsaz tragedy (on October 18), the PPP cochairman and President Asif Ali Zardari has paid glowing tributes to the martyrs. He said the tragedy was a reminder that the central See # 8 Page 11

Ahmed Siddique KARACHI: State Bank of Pakistan has released the combined balance sheet of all scheduled banks in the country till October 1, 2010 which was the first weekend of the current month. According to the data, total deposits in the first nine months of CY10 (January to September), increased by 6.8 per cent to Rs4.71 trillion as compared to Rs4.42 trillion at the beginning of current year. However, in the third quarter of the calendar year (3QCY10) the deposits decreased by 1.2 per cent QoQ against the growth of 5.4 per cent in the previous quarter (April-June-10). In sharp contrast to the deposit performance, gross advances marginally fell one per cent to Rs3.28 trillion on October 1, 2010

Swiss Franc

89.35

U.A.E Dirham

23.35

23.50

Foreign buying at KSE during last wk

135.10

136.10

86.05

86.35

Outlanders clutch $9.61mn equities

UK Pound US $

90.35

Steel Prices Billets

Price Rs./Ton

150 x 150mm

52,000

125 x 125mm

52,000

90 x 90mm/ 100 x 100mm/ 105 x 105mm

52,500

80 x 80mm/ 75 x 75mm

52,850

65 x 65mm

53,700

50 X 50mm

54,200 Bloom

260 x 260mm

52,300

Billet, Grade SUP 6 & 7 100 x 100mm

69,200

75 x 75mm

69,500

Billet, Grade SUP 9 100 x 100mm 75 x 75mm

70,200 70,500

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Ghulam Raza Rajani KARACHI: The buying momentum of the offshore investors continued throughout the last week in the local bourses with attractive fresh net inflow of $9.6 million, as per the National Clearing Company of Pakistan Limited (NCCPL) data. On the other hand, positive activities continued at local bourses as KSE 100Index closed up 1.67 per cent or 171.36 points at 10,431.84. Buying was witnessed on the expectations of good quarterly corporate results and prospects of foreign pledges in FoDP meeting. However, volumes declined 2 per cent

to stand at 90 million shares against 92 million shares traded week before last. As per details, foreign investors decided buying fresh positions as they bought shares worth $16.48 million and sold $6.87 million, resulting in net buying of $9.61 million during the last week. On the daily basis, foreigners invested $1.1 million and $1.15 million on Monday and Tuesday respectively. Likewise on Wednesday foreign buying worth $1.8 million was carried out. Similarly, the same euphoria engendered buying of $2.68 million on Thursday and $2.88 million on Friday . See # 10 Page 11

I S L A M A B A D / KARACHI: All the rumours regarding MQM's chickening out of coalition from Pakistan Peoples Party government came to an end Sunday night when Governor Sindh Dr Ishratul Ebad Khan met with President Asif Ali Zardari here at Aiwan-e-Sadr. He was invited by President to Islamabad to confer upon the ongoing goings-on in Karachi. According to the media, both leaders took stocks of issues with special focus was given to situation in Karachi. President Zardari urged Governor Ebad to continue with his official responsi-

MQM wins PS-94 by-poll KARACHI: According to unofficial results, Muttahida Qaumi Movement's (MQM) candidate for the vacant seat of PS-94 Saifuddin Khalid has emerged victorious, grabbing 91752 votes from the constituency, private television channels reported Sunday. The said seat had fallen vacant after the murder of Raza Haider of MQM, while ANP boycotted the polls. The report said that some 1,022 Rangers and 2,015 police personnel had been deployed in the constituency, where 12 polling stations were declared highly sensitive. -Agencies bilities while he assured the resolution of reservations put forward by MQM. Media further revealed that President assured the government would go-forward with its coalition partners by adopting the dialogues, added that PPP and MQM would go hand-inhand in future too. President also ordered Interior Ministry Rehman

Malik to dig-out the ongoing target-killing in the Karachi. Earlier, according to the news broadcasted all over the media in country, Ebad had made up his mind to relinquish governorship and in this regard he did compose his resignation, which would be submitted to the President, if former does See # 11 Page 11

Sharif blames President for current quandary LONDON: PML-N leader Mian Nawaz Sharif has said that the President is responsible for the sorry-state of affairs of the country. Addressing PML-N party workers here on Sunday, Mian Nawaz Sharif said that the government backed out from all its promises and held the President responsible for breaking all pledges and promises. He further said if the deteriorating situation of the country is left unaddressed then everyone would be See # 6 Page 11

PML unification

'Q' leaders meet Shahbaz LAHORE: Senators SM Zafar and Tariq Azeem met Punjab Chief Minister Muhammad Shahbaz Sharif, here Sunday. Members National Assembly Chaudhry Nisar, Khawaja Muhammad Asif See # 7 Page 11

Monday, October 18, 2010

Power sector deficit at Rs240bn/yr

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

Qaim concerned over target killings KARACHI: Sindh Chief Minister Syed Qaim Ali Shah has taken notice of the killings of over 27 innocent citizens in firing incidents in different area of the city and ordered IGP Sindh and DG Rangers Sindh to take action against people involved in these incidents. He directed them to increase in number of police contingent and rangers in affected areas. The Chief Minister directed Sindh police and rangers to ensure safety to the people and their properties. Qaim asked all groups and citizens to maintain peaceful environment and show cohesion.-APP

Educated youth asset of nation: Sharmila KARACHI: A well educated and motivated youth is the asset of any nation. The government is well sensitised to their issues and therefore steps are being adopted to create post-education opportunities for them. Advisor to Sindh Chief Minister for Information Sharmila Faruqui said this while awarding gold medals to the talented youth at an All Pakistan Memon Federation Annual Award Distribution Ceremony held at Memon Complex ground, Opposite Government Islamia Arts and Commerce College. She appreciated the role

of All Pakistan Memon Federation in providing quality Education System for the prosperity of youths by empowering educational institutions to transform them into contemporary learning organizations. Later on, Sharmila Faruqui awarded gold medals to four highly talented girls of Memon community for brilliant performance in education. Earlier Sharmila Farooqui condemned torching of a vehicle of Dawn media group in the wee hours by some unknown elements, here on Sunday. "A proper security plan

for media houses and media personnel should be chalked out in consultation with the stake holders to ensure safety and security to journalists during field duties," she observed. Sharmila asked CCPO Karachi to ensure security and proper co-ordination to media personnel dispensing responsible duties. She reiterated to extend maximum security to media personnel in order to promote media independence and function. She also directed CCPO Karachi to inquire into the matter and arrest the involved culprits.-PPI

Education gets more expensive

Textbooks prices on the rise: report MONDAY Time Programmes 8:00 Agenda 360 (Rpt) 9:00 News 9:15 Pehla Sauda 10:00 News 10:15 Bazaar 11:00 News 11:05 Ghar Ka Kharch 12:00 News 12:05 Agenda 360 (Rpt) 13:00 News 15:15 Power Lunch 14:00 News 15:02 Akhri Sauda 15:30 Amnay Samnay (Rpt) 16:15 Karobari Dunya 17:05 Ghar Ka Kharch 18:05 Chai Time 19:00 News 19:05 Tax Time 19:30 Mang Raha Hai Pakistan 20:00 News 20:05 Islamabad Say 21:00 Pakistan Aaj Raat 22:00 News 22:05 Doosra Pehlu 23:00 News 23:05 Uff Tv (Rpt) 23:30 Dilkash Pakistan (Rpt)

TV PROGRAMMES MONDAY

KARACHI: The rates of school stationery and textbooks are on the rise, causing immense problems for students and their parents, a report reveled. A sharp rise in the rate of school stationery, particularly copies and notebooks have baffled parents, belonging to low-income families. This price hike is well-timed with the beginning of new academic session of intermediate. It is learnt some booksellers are openly cheating the innocent students by artificially increasing rates of textbooks of private publishers.

In these days classes of first year intermediate are just taking start in the colleges of Karachi and students are rushing to markets for purchasing their syllabus, particularly to "Urdu Bazaar" which is the main market of Karachi for educational items. The government is providing textbooks to new students of higher secondary education studying in government-run institutions. However, profit mafia has devised another innovative method of fleecing students through raising the rates of notebooks. A

Karachi Target Killings

Mirza orders impartial probe KARACHI: Sindh Home Minister Zulfiqar Mirza has asked the Capital City Police Officer (CCPO), Karachi, to launch an impartial enquiry into the killings in Karachi and arrest the culprits. According to a statement of the office of the Home Minister issued here Sunday, he directed the Rangers and Police to increase patrolling in affected areas and conduct snap checking to prevent further incidents of firing. Moreover, ban may also

be implemented strictly on aerial firing, and exhibition of arms and extra-ordinary security may be taken for the safety of the general public and particularly in Orangi Town, it added. He further directed the police and rangers to take effective measures and impartial action may also be taken wherever necessary to control the law and order situation. In addition, intelligence network may also be made effective to keep a vigil on anti-social elements, the statement said.-APP

Time Programmes

7:00 8:00 9:05 11:10 (Rpt) 12:00 13:10 14:10 15:00 16:00 17:30 18:00 18:30 19:30 20:03 21:00 22:03 23:00

News News Subah Savere Maya ke Sath The Reema Show News Faisla Aap Ka (Rpt) Tafteesh (Rpt) News News Samaa Metro News Samaa Sports Crime Scene Newsbeat News Tonight With Jasmeen News

raise of Rs5 to Rs10 is made in each notebook, depending on its size. The main affectees of this situation are students of government colleges, belonging to lower middle class, whose parents have already been facing acute problems due to inflation. Yousaf, a student of first year told PPI at Urdu Bazaar that ongoing situation is proving very hard for his family to bear his educational expenses. He said that he has purchased a journal by Rs55, which he had purchased by Rs35 a few months ago.-PPI

Minister condemns murder of two boys KARACHI: The Minister Katchi Abadis Rafique Engineer while strongly condemning the incident of kidnapping and murder of two innocent young boys, said that people involved in this heinous crime in whatever political cover, the government would deal with them with iron hands. Sindh Minister for Katchi Abadis & Spatial Development Engineer Muhammad Rafique Advocate visited the residences of the two young boys of Lyari Gul Muhammad Lane and has offered his heartfelt condolence with the Abdul Latif and Khuda Bux fathers of victims Shaukat & Suleman who were kidnapped from Usmanabad and were brutally killed by the terrorists and dumped their bodies in Nazimabad.-APP

CORRIGENDUM KARACHI: Trade advisor of Thai government Arif Suleman, hosted a dinner to welcome newly arrived Consul General of Thailand Udom Sapito. Photo shows officials from Thai Airways along with diplomats from Qatar, Switzerland, Sri Lanka, Indonesia, Saudi Arabia, Bahrain, Korea, Malaysia and Thailand with host and other guests.-Staff Photo

News regarding the power sector deficit printed on Saturday (16-10-2010) had a typographical error in which power sector deficit of Rs 240 billion was mistakenly printed as Rs 240 million.

ISLAMABAD: Federal Minister for Water and Power Raja Pervaiz Ashraf has said that the government has to face a deficit of Rs240 billion annually in the power sector. He expressed these views while addressing the appointment letter distribution ceremony at Wapda Staff College. He said despite unfavorable condition we managed to bring 1700MW into the system and 1200MW would be inducted in next four months. He said that work on Diamer Bhasha dam would start from next month, adding, the country has the capacity to produce 19,000 megawatts of electricity.-Online

3 Monday, October 18, 2010

Asian currencies

Mostly up for 7th wk, led by Singapore $ BANGKOK: Asian currencies completed a seventh weekly advance, led by the Singapore dollar, as relatively high yields and the world's fastest economic growth spurred demand for assets in the region's developing nations. Equity funds investing in Asia excluding Japan have taken in more than $1 billion in all but one of the past four weeks, according to data from EPFR Global. The Singapore dollar climbed 1.2 per cent last week to S$1.2965, its best performance in six months. India's rupee climbed 0.8 per cent to 44.10 after global funds pumped $1.8 billion into the nation's equities in the first four days of the week. Thailand's baht strengthened 0.8 per cent to 29.82, an 11th straight weekly gain. Central banks in India, Malaysia, South Korea, Taiwan and Thailand have raised interest rates this year to contain inflation as their economies improve. Their counterparts in the US and Japan by contrast have near-zero rates and are buying assets to inject funds and support growth. The Monetary Authority of Singapore said last week it will steepen and widen the band in which its dollar trades against a weighted basket of currencies, seeking a "modest and gradual" advance. The Singapore dollar reached $1.2893

versus the greenback after the bi-annual policy review, the strongest level since at least 1981. Asia's developing economies will expand 9.4 per cent in 2010, compared with growth of 2.7 per cent in advanced countries, the International Monetary Fund forecast on Oct. 6. The yuan rose to the strongest level since 1993 on Friday on speculation American lawmakers will step up calls for faster appreciation after the US said its trade deficit with China widened to a record $28 billion in August. The US Treasury Department said its twice-annual report on international currencies will be delayed, including China's, while citing progress in the acceleration of the yuan's rise. The currency has appreciated 0.4 per cent this week to 6.6412. Malaysia's ringgit climbed 0.8 per cent to 3.0855 per dollar last week, contributing to this year's 11 per cent advance. The currency touched a 13-year high this week, as did Thailand's baht. The baht is Asia's best-performing emerging-market currency of 2010 with a 12 per cent gain. Elsewhere, Taiwan's dollar jumped 1 per cent from a week ago to NT$30.793. The Philippine peso rose 0.5 per cent to 43.185 and Indonesia's rupiah was 0.2 per cent stronger at 8,913. -Agencies

C$ flees parity as USD recovers TORONTO: The Canadian dollar came close to reaching parity with the greenback on Friday but then retreated as US Federal Reserve Chairman Ben Bernanke offered no new details on monetary policy easing, leading investors to bet the US dollar was oversold. Bernanke said that high unemployment and low inflation point to a need for more stimulus, but he failed to offer specifics on the US central bank's next step. "There was a meaningful reason why he left a lot of that information off the table and the market speculates now that it's because the Fed itself can't reach a consensus in terms of how to push forward with special quantitative easing measures," said Jack Spitz, managing director of foreign exchange at National Bank Financial.

Soybeans slips but up 4.4pc for wk KANSAS CITY: US soybean futures ended lower on Friday as late profit-taking erased early gains, yet still ended the week more than 4 per cent higher on strong demand from US domestic processors and exporters. Spot soybeans rose overnight to $12.04-1/4, the highest spot price on continuous charts in 14 months, but prices waned as Friday's session advanced with a strengthening dollar and some pre-weekend profit-taking hitting soy and corn markets. US wheat prices ended higher, meanwhile, with back months soaring on technical buying. Several 2012 contracts set contract highs as traders put on bear-spreads, buying December 2012 wheat and selling December 2011 on expectations that storage rates for deliverable CBOT wheat will rise. Chicago Board of Trade spot December wheat ended up 33/4 cents at $7.04-1/2; November soybeans ended the session off 3-1/2 cents at $11.85, while December corn closed down 4-1/4 cents at $5.63.-Reuters

"That being said, the market is pulling back some of its short dollar positioning ... given the fact that that boat is particularly full right now and markets that are overextended have a tendency to be subject to relatively significant price swings." The expectation of quantitative easing by the Fed -- essentially creating new money to buy assets -- has been driving the US dollar lower and higher-yielding currencies, such as Canada's, higher. The Canadian currency initially rose as high as C$1.0012 versus the US dollar, or 99.88 US cents, following Bernanke's speech and soft US inflation data -- a key concern for the Fed -before it pulled back. The Canadian dollar closed the North American session at C$1.0118 to the US dollar, or 98.83 US cents, more than half a

penny down from Thursday's finish of C$1.0060 to the US dollar, or 99.40 US cents. It ended the week 0.05 per cent lower, capping six straight weeks of gains. Market focus is on the Bank of Canada interest rate announcement on Tuesday and its Monetary Policy Report on Wednesday, though many expect the central bank to stand pat on rates for the rest of this year. Camilla Sutton, chief currency strategist at Scotia Capital, stressed, however, that the Canadian dollar is not currently trading on its own fundamentals. "It's really not a CAD story like it was in the spring when we went to parity, this is very much a US dollar weakness story," she said. "As soon as the US dollar weakness story fades that will immediately fade the rally in CAD." -Reuters

Sugar underpinned by tight supply outlook NEW YORK/LONDON: Cocoa futures slid 2.6 per cent on Friday, closing with their biggest daily percentage loss in more than two months, and most soft commodities also fell as investors took profits ahead of the weekend. Sugar and arabica coffee futures fell, but the slide for US cocoa was exacerbated when the pound turned lower against the dollar. ICE December cocoa, traded in New York, fell $75 or 2.6 per cent to finish at $2,805 per tonne, while Liffe March cocoa in London finished down 49 pounds at 1,877 pounds a tonne. Data released after markets closed on Thursday showed North American cocoa grindings rose 1.71 per cent in the third quarter from a year earlier, at the lower end of estimates gathered by Reuters ahead. Raw sugar futures tumbled, seeing the first day of losses in seven sessions, as dealers grabbed profits after the market moved up to eight-month highs this week. Still, the overall outlook of the market looked bullish as physical supplies remained tight, demand was steady and top grower Brazil continued to see shipment delays.

Sugar supplies were expected to remain tight into the first half of 2011, said Nick Penney of Sucden Financial Sugar told Reuters. He said benchmark ICE raw sugar futures could soon probe near the Feb. 1, 29year high of 30.40 cents a lb. Brokers and dealers said activity on the physical market was slack at current high prices. ICE benchmark March raw sugar futures tumbled 0.88 cent or by 3.1 per cent to finish at 27.06 cents per lb, but closing the week up 2.8 per cent. London December white sugar finished down $15.50 at $696.20 per tonne. Arabica coffee finished weak but within sight of last month's 13-year high of $1.9865 as supplies of high quality arabica beans remained tight. The December contract, however, failed to reach the technical resistance level at $1.90 and as the dollar turned higher and investors grabbed profits. ICE December arabica coffee futures fell 1.20 cents to close at $1.8640 per lb, but closing the week up 2.3 per cent, the biggest weekly percentage gain in six weeks. Liffe January robusta coffee settled flat at $1,682 per tonne. -Reuters

NY cotton slips after hitting record top NEW YORK: US cotton futures sank from a record peak on Friday as speculative funds took profits, but analysts said the market's three-month rally could resume next week if No. 1 consumer China sees the drop as a cue to buy. Cotton prices on ICE Futures US and China's Zhengzhou Commodity Exchange have soared into uncharted territory, stoked by strong demand and tight global supplies. A fall in the dollar to an eightweek low galvanized the rally earlier on Friday but a recovery later by the greenback helped to blunt cotton's advance. The key December US cotton

contract hit an all-time peak of $1.198 per lb within minutes of opening at 0100 GMT but it could go no higher, closing down by its 5.00-cent daily limit at $1.0987 per lb. The key May 2011 cotton futures on the Zhengzhou Commodity Exchange rose 275 to finish at 24,305 yuan per tonne, having hit a lifetime peak of 24,680 in Friday's session. "I think (we saw) a naturally occurring correction," Ron Lawson, cotton expert at brokerage logicadvisors.com in Sonoma, California, said. "All the symptoms we look for in terms of a top, we're seeing today," said Sharon

Johnson, cotton specialist for First Capitol Group financial advisors in Atlanta, Georgia, referring to the market's rapid drop from the record high. Volume traded hit around 33,950 lots, 65 per cent above the 30-day average at 20,567 lots, preliminary Thomson Reuters data showed. A weekly report by the US Commodity Futures Trading Commission showed funds' net long positions in cotton had fallen slightly. Noncommercial net long positions fell to 35,020 lots, from 35,875 lots. Managed money accounts' net long standing was at 44,026 lots, from 47,120 lots. -Reuters

Sterling surges to 9-mth high against dollar LONDON: Sterling rose on Friday as Federal Reserve Chairman Ben S. Bernanke said additional monetary stimulus, or so-called quantitative easing, may be warranted in the US. The pound rose to its strongest level since January against the dollar after Bernanke said additional QE may be warranted. "There would appear -- all else being equal -- to be a case for further action," he said in the text of remarks given at a Boston Fed conference. Further quantitative easing "makes me fairly queasy," Lomax, the UK central bank's chief of monetary policy from 2003 to 2008, told a London conference organized by HSBC Holdings Plc. "What exactly does it do? It pushes up asset prices, but how effective is it in stimulating domestic demand? We really don't know." The pound gained 0.6 per cent to 87.44 pence per euro, paring its fifth weekly decline to 0.2 per cent. It was 0.2 per cent stronger at $1.6041, after climbing to its strongest level since Jan. 29. Sterling has fallen against the euro in the past month amid speculation a slowing recovery will prompt the Bank of England to keep its benchmark interest rate at a record low of 0.5 per cent. The pound has also been driven down by concern that the central bank will add to its bondpurchase plan of 200 billion pounds just as the European Central Bank exits its own stimulus. Britain's currency has lost 4.8 per cent in 2010 against its developed-country peers. The Bank of England should start withdrawing its "extreme" measures, former policy maker DeAnne Julius said in an interview with the Yorkshire Post. -Agencies

Copper up for 5th wk on Fed view NEW YORK/LONDON: Copper prices rose for a fifth consecutive week on Friday, with strong regional manufacturing data in the United States and expectations of further monetary easing from the US Federal Reserve bolstering the metal's demand outlook. Copper for December delivery on the COMEX metals division of the New York Mercantile Exchange rose 2.35 cents to settle at $3.8390 per lb. Trading ranged from $3.7945 to $3.8645, a touch below Thursday's peak at $3.8675, which marked the highest level for the third-position futures contract since July 7, 2008. On the London Metal Exchange, benchmark copper was unchanged at $8,400 a tonne by the close. It touched a session high of $8,484, just below Thursday's peak of $8,490 a tonne, another high dating back to July 2008. Copper prices have rallied nearly 40 per cent since their June lows and were up more than 1 per cent this week. Copper has benefited from a tightening market, reflected in LME copper warehouse stocks, which are down more than 30 per cent since February, when they touched 555,000 tonnes. Latest data showed LME stocks down 475 tonnes at 371,025 tonnes. However, copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 9.9 per cent from a week earlier, the exchange said on Friday. Tin shed $200 to end at $26,750 per tonne, down from Thursday's record $27,338.50. Reinforcing high prices were three large holdings of LME stock warrants and cash contracts. Aluminum closed down $33 at $2,377 a tonne. Zinc peaked at $2,451 a tonne, its highest since late April, before ending up $9 at $2,424. Lead wound up at $2,425 a tonne. It had been bid at $2,411 at Thursday's close. Nickel dropped $270 to $24,035. -Reuters

Greenback weekly outlook

Dollar vulnerable but selling may slow NEW YORK: The good news for the dollar, which hit a 2010 low this week, is that selling may slow a bit in the week ahead, perhaps even enough for a mild correction. The bad news -- at least for dollar bulls and developing countries struggling with currency appreciation -- is that any dollar gains look to be but a brief pause for breath in an otherwise steady march lower. The most proximate cause of dollar weakness has been US monetary policy, and with the Federal Reserve all but promising to turn on the printing press again before the year is out, that isn't likely to change. That's driving the dollar lower and putting pressure on China and other emerging markets, which intervene to prevent their own currencies from rising too quickly. But uncertainty about the size and scope of any additional Fed easing mean it may be time for investors to ease into wait-and-see mode, watching economic data for any surprises but otherwise waiting for the Fed's policy meeting in November. Since September the dollar has lost 8 per cent against a basket of currencies, about 10 per cent against the euro and around 11 per cent against the Australian dollar -- which in some ways is the mirror image of the US currency with its high interest rates, a central bank worried about inflation, and a booming economy with strong trade links to China and India. "I do think we've reached extreme levels in the dollar and quite a lot of the Fed's expected quantitative easing is priced in," said Boris Schlossberg, director of research at GFT

Forex in New York. EURO A BIT STRETCHED Mark McCormick, a strategist at Brown Brothers Harriman, said the dollar looks

USD net shorts dips to $29bn: CFTC NEW YORK: Currency speculators trimmed bets against the dollar in the latest week but remained heavily against the US currency, data from the Commodity Futures Trading Commission showed on Friday. The value of the dollar's net short position slipped to $29 billion in the week ended Oct. 12, according to CFTC and Reuters calculations. That compared to a net short of $30.5 billion in previous week, the biggest bet against the dollar since at least June 2008. A short position is a bet that a currency will decline in value. Speculators trimmed bets in favor of the euro, yen and Australian dollar, though long positions in all three remained elevated. The dollar has been under heavy selling pressure for weeks because markets expect the Federal Reserve to start pumping new money into the US economy next month to boost a faltering recovery.-Reuters particularly stretched against the euro, which has until recently tended to lose momentum above $1.41. Traders said a move below $1.3955 would likely trigger some automatic sell orders, and CitiFX strategist said that charts suggest support levels

around $1.3819 and then $1.3593, the 55-week moving average. McCormick said the Australian dollar, which soared above parity with the greenback Friday for the first time since it was floated in 1983, may also be due for some profit-taking. Sterling, however, looks more attractive, he said, as signals from the Bank of England suggest policymakers there are increasingly dubious about following the Fed's lead and launching a second round of quantitative easing, "I would short euros in the short term, consider taking profits on the high-yielders, and go long the pound," he said. Some analysts though, aren't even willing to bet on a temporary lull in dollar selling. "If we are going to get a correction, we didn't see much evidence of it today," said BNY Mellon strategist Michael Woolfolk. "We got a modest bout of profit-taking but it was so shallow that one has to draw from this a likely return to dollar selling in the days ahead." CitiFX technical strategists expect the euro to make a run at $1.4350 in the coming weeks, followed by $1.4720. The dollar's already at a 15year low around 81 yen, and traders said the threat of another round of Bank of Japan intervention is the only thing keeping the greenback from falling to a record low beneath 80 yen. Woolfolk said uncertainty about the yen is a main cause of dollar weakness, "as it encourages people to use the dollar as a funding currency for carry trades." -Reuters

Oil down for 1st week in four on options, USD Bernanke signals more easing to avoid deflation NEW YORK: Oil prices fell nearly 2 per cent in light, volatile trading on Friday, posting their first weekly loss in four weeks, as options expired and the dollar rose, sparking profittaking ahead of the weekend. Oil prices rose early in the session after US Federal Reserve Chairman Ben Bernanke signaled that the central bank would likely pump more money into the sagging economy. But prices weakened later on the view that any such quantitative easing was already priced in the market and as the dollar rose on profit-taking, with traders saying its recent decline was overdone. At the same time, crude oil options trading plays kicked in, pressuring prices. "The oil slide started as the dollar continued to rise. But, as November crude penetrates var-

ious strike prices, it causes traders to sell futures to protect against expiring option exposure," said Tom Bentz, broker at BNP Paribas Commodities Futures Inc in New York. On the New York Mercantile Exchange, crude for November delivery settled down $1.44, or 1.74 per cent, at $81.25 a barrel, after trading from $80.75 to $83.33. By 1945 GMT volume was around 661,000 lots. For the week, front-month NYMEX crude fell $1.41, or 1.71 per cent. At the start of the day, put options -- contracts that grant the right to sell at a specific price by a certain date -- were concentrated on the $82, $81 and $80 levels. "The market was attempting to push up to $85, and we got to near $84.50 earlier in the week, and (then) the market turned back down," said Gene

McGillian, an analyst at Tradition Energy in Stamford, Connecticut. He added that, as the dollar gained on Friday, concerns about oil fundamentals began to weigh on the market. "Because of our poor underlying fundamentals, the longs in the oil market are very kind of skittish about the direction of the market, he added." In London, ICE December Brent crude fell $1.75, or 2.08 per cent, to end at $82.45, after sliding to a low of $81.95. For the week, front-month Brent crude fell $1.58, or 1.9 per cent, its first weekly loss in eight weeks. Oil investors also raised questions about the size and the timing of the widely expected purchases of government debt by the central bank in a second round of quantitative easing measures. The unease prompted profit-taking.-Reuters

Gold retreats on dollar rise in mixed markets NEW YORK: Gold fell on Friday, snapping a two-day record-setting rally, as the dollar rose and Fed Chairman Ben Bernanke offered few new details on further economic stimulus which prompted investors to take profits. In a day of volatile trade and a host of mixed market signals, bullion is still on track to end higher for an 11th straight week, driven by a hardening view that the Fed will resume buying government debt to stimulate the economy. On Friday, Bernanke delivered his most explicit signal yet that the US central bank is likely to use easier monetary policy as soon as its next meeting in November. But he failed to offer the details that some gold investors are craving to sustain the rally. "The question is for how much longer the market is pre-

pared to run just on the quantitative easing story. I think the market at these levels wants to see the facts before committing additional capital to the upside," said Saxo Bank senior manager Ole Hansen. Gold rose to within two dollars of Thursday's all-time high at $1,387.10 an ounce on a knee-jerk rally immediately following Bernanke's remarks, which initially hit the dollar. But the metal later weakened as the dollar rebounded sharply from a more than eight-month low versus the euro as traders said the greenback's recent declines were overdone. Spot gold was trading down 0.7 per cent at $1,366.50 an ounce at 1935 GMT. US gold futures for December delivery settled down $5.60 at $1,372. COMEX gold volume was heavy during Friday's correction at about 190,000 lots, 34 per

cent above its 30-day average. Gold investors opted to lock in profits ahead of the weekend on a day when financial markets were driven by myriad diverse factors. Gold has climbed some 25 per cent this year as the prospect of further quantitative easing in the United States undermined the dollar and prompted investors to buy the precious metal as a hedge against currency depreciation. Stronger-than-expected September US retail sales and manufacturing activity in New York State on Friday reduced investor anxiety somewhat and triggered profit-taking in gold which is viewed as a safe haven investment, analysts said. Among other precious metals, silver fell 1.5 per cent to $24.25, platinum slipped 1 per cent to $1,688 an ounce and palladium was trading down 1.7 per cent at $587.50 an ounce. -Reuters

4 Saturday, October 16, 2010

The Financial Daily International Vol 4, Issue 74

Publisher & Editor-in-Chief: Amir A. Ashary Editor: Shakil H. Jafri Executive Editor: Manzar Naqvi

Remembering October 18th

Honorary Advisory Board S. Muneer Hussain Rizvi

Haseeb Khan, FCA Asim Abbas Ashary, CPA

Khurram Shehzad, CFA

Akhtar M. Zaidi, FCA

Prof. Zakaria Sajid (KU)

Dr. A. Hadi Shahid, FCA

Zahid Bukhari SVP HBL (retd)

Muhammad Arif

Ismat Sabir Head office

111-C, Jami Commercial Street 11, Phase VII, DHA Karachi Telephone: 92-21-5311893-6 Fax: 92-21-5388428 URL: www.thefinancialdaily.com Email Address: editor@thefinancialdaily.com

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

Boosting yield thru land reforms The Muttahida Qaumi Movement (MQM) has submitted a land reforms bill in the National Assembly secretariat proposing limits on landholdings. The bill proposes that each family should be allowed to own a maximum of 30 acres irrigated or 54 acres arid land. The bill will not apply to the Federally Administered Tribal Areas (FATA). The MQM says, “The Redistributive Land Reforms Bill, 2010, is aimed at the eradication of hereditary ownership of agricultural land and its redistribution among tillers.” The bill proposes all land within the territorial limits of provinces, whether owned or leased or occupied or tenanted or encumbered or mortgaged with or without possession by any person, be resumed in the name of the provincial government. Since the land is a free bounty of nature and state is recognised as its owner, under the proposed redistribution of land, each landless family the cultivator or tenant or small land owner shall be granted land out of the land that has been acquired by the state. Priority would be given to landless tillers followed by landless tenant farmers and small landowners. Ironically various land reforms undertaken in Pakistan failed in ensuring fair distribution of land. A new set of elite emerged in Pakistan soon after independence having ulterior motives to create constituencies for themselves. This resulted in an endless plunder of stateland by civil and military bureaucracy, creating absentee landlords, who are never interested in improving agriculture productivity. Added to this has been colonisations with the construction of barrages and granting the most fertile and large tracts of land to influential absentee landlords, who earn windfall profits through the sweat and labour of those working on their land. The feudal lords assert power on the basis of land and also keep their agriculture income free of tax, while most of the rural population lives below the poverty line. India had got rid of this culture soon after independence. Can yet another round of land reforms bring about any change? The probability is that feudal lords will try their best to sabotage the bill to continue exploiting the masses. The process of bringing any change often becomes very slow as the groups at stake try to derail it. The time has come to convince all, that the collective wellbeing lies in following good governance and supremacy of law. The objectives can't be achieved without abolishing the jagirdarana nizam. Pakistan is still ruled by a few families of elites called Waderas in Sindh/Balochistan, Chaudhris/Maliks in Punjab, and Khans in Khyber Pakhtunkhwa . It’s time things changed for good, for all, and forever.

Disclaimer:

All reports and recommendations have been prepared for your information only. Summary and Analysis are not recommendation to buy or sell. This information should only be used by investors who are aware of the risk inherent in securities trading. The facts, information, data, indicators and charts presented have been obtained from sources believed to be reliable, but their accuracy and completeness cannot be guaranteed. The Financial Daily International and its employees are not responsible for any loss arising from use of these reports and recommendations.

Sharmila Farooqui Advisor to CM Sindh on Information "The attack was not on me, the attack was on what I represent. It was an attack on democracy and on the very unity and integrity of Pakistan", said Benazir Bhutto on October 18th of 2007 barely surviving an attacked. The killers were adamant and took martyred her on December 27th the same year. Though she had been assassinated the legacy continues. Hundreds of thousands of people thronged the Karachi airport on October 18th, for a heroic welcome to their cherished leader, who was returning home after years of exile. It was Benazir Bhutto, the exprime minister of Pakistan. She fought the two dictators while in exile. But as the very existence of Pakistan was in danger due to the anti-democratic policies of Musharraf, Benazir decided to end her exile to lead the democratic forces from the front. It was difficult for the forces of extremism to witness her arrival in the country. The attack on her convoy in which almost 200 people died, is a grim reminder of that intolerance. While briefing the media after the attack, she said that it was not an attack on her, but an attack on democracy, and the unity and integrity of Pakistan. Benazir Bhutto challenged the forces of dictatorship and extremism. The restoration of democracy and ridding the country from the clutches of democracy were her articles of faith. She was the hope of

masses, the downtrodden and the marginalised. Benazir died on December 27, 2007, while she was leading a political rally in Rawalpindi. All hopes of the extremists to bury her ideals with her physical obliteration have been smashed by her followers, who have vowed to continue the struggle spearheaded by her for democracy and rule of law in Pakistan. Asif Ali Zardari, Benazir's husband and now the president of Pakistan has followed her footsteps to accomplish her ideals. He has an unshakable belief that Pakistan should embrace the modern world with the same confidence and courage that Shaheed Mohtarma had. Zardari believes in democracy, freedom and openness, not as a slogan but as a way of life. After Benazir's death, Zardari remains the most potent Pakistani voice for liberalism, tolerance and change. President Zardari's two years in office are marked by the accomplishment of Benazir's mission and ideals. Following the reconciliation approach of Benazir Bhutto and using his wisdom and political acumen he has successful developed consensus on those issues which were previously shelved due to the lack of consensus i.e. NFC Award. Since assuming office as a result of the exit of Musharraf which he made possible using his political vision, Zardari has used conciliatory approach towards his political opponents to get their support on important national issues. It is easy to develop a new structure, but extremely difficult to reform the existing one. Zardari did the latter in the form of the 18th Amendment, a milestone in Pakistan's constitutional history. The government has undertaken a number of steps to nullify the dictatorial measures. These achievements stand out as a testimony to the accomplishment of Benazir's ideals. These includes 7th NFC Award, Aghaz-i-Haqooq-eBalochistan, political reforms in Gilgit-Baltistan and FATA, 18th Amendment, reconstruc-

tion of the Council of Common Interests, allocation of 120 billion rupees to Khyber Pakhtunkhwa as net hydel profit, launching of Benazir Income Support Programme to alleviate poverty and increasing gas development surcharge for Balochistan. On the international front, Zardari has followed the footsteps of Benazir Bhutto. He has stressed the need to further strengthen Pakistan's relations

until and unless powers rest with the representatives of the people. President Zardari made history by signing the landmark constitutional reforms bill into law in the form of 18th Amendment. "It is indeed a great honour for me to have signed into law this bill that seeks to undo the undemocratic clauses introduced in the constitution by undemocratic leaders. The doors of dictatorship have been closed forever", said President Asif Ali Zardari

“

The government has undertaken a number of steps to nullify the dictatorial measures. These achievements stand out as a testimony to the accomplishment of Benazir's ideals.

with China and to normalise relations with India; to minimize the trust-deficit in PakUS relations and convince US as well as the EU countries to give more access and increase quota for Pakistani export goods. Spirit of participation, consultation and equal opportunity are the guiding principles for the formulation of Zardari's policy at strategic and implementation levels. Benazir Bhutto had reiterated time and again to fight the extremists who wanted to rob the people of their fundamental and democratic rights. Following her conciliatory approach President Zardari signed the Nizam-e-Adal regulation with militants in Swat and once it failed he ordered operation against the terrorists in the larger interest of the country without bowing to any pressure. The government also launched operation against the terrorists in South Waziristan. Terrorists' safe-havens have been destroyed in this area. Benazir Bhutto had said that the fruits of democracy could not reach the common man

while addressing the ceremony after according assent to the amendment. The autonomy package for Gilgit-Baltistan introduced by the PPP Government led by Zardari is the accomplishment of Benazir's ideal to strengthen the federation. The area has now an autonomous status with a chief minister and a governor. Ms Bhutto had promised to make Balochistan an equal partner in the federation. Balochistan package is the fulfillment of that promise. Zardari made a departure from the past practice of training guns on those demanding their rights. He made a public apology for all the wrongs done to the people of Balochistan in the past and pledged to make the province an equal partner in the federation. Benazir vowed to safeguard the rights of the workers and women. The Zardari-led people's government has passed a number of laws to accomplish this dream. It includes the Industrial Relations Act 2008, the Prevention of Domestic

Violence Act, 2008, The Protection Against Harassment of Women at Workplace Act, 2009, the Removal from Service(Special Powers) Ordinance 2000( Repeal) Act,2010, the Services Tribunal( Amendment) Act, 2010 etc. In order to uphold the dignity of labour the people's government passed the Industrial Relations Act, 2008. It regulates the government's vision on labour. The protection Against Harassment of Women at Workplace Act is a modern legal instrument to provide protection to women. The Musharraf regime had targeted the Civil Servants by introducing the black law of 'Removal from Service Ordinance 2000'. Realizing the negative impact of this black law on the performance of the civil servants, the People's government passed the Removal from Service (Special Powers) Ordinance 2000(Repeal) Act, 2010. Now the Civil Servants can work according to their conscience. Benazir Bhutto, during her two terms in office had initiated a number of steps for the benefit of the agricultural class. The Zardari-led people's government led that initiative and introduced Benazir Tractor scheme, The Benazir Credit Card Scheme and Crop Loan Insurance schemes etc. The people's government is following its motto 'Roti, Kapra aur Makan' as the government has initiated the construction of 300,000 low-cost houses for the poor under Benazir Behan Basti scheme. However, the anti-democratic forces do not want to see democracy flourishing and people getting their basic rights. They are using negative approach to fulfill their ulterior motives. Part of the media seems to be playing in the hands of those elements, which is unfortunate. The workers and leaders of Pakistan People's Party are ready to challenge such antidemocratic tactics.

Changing Journalism T

hink back a century and news needs and news methods were completely different. David Schlesinger Just think that the first airmail flight between Britain and Hong Kong did not land until 1936. And yet today at my home in London I get a rich and vibrant stream of news, photographs, stories and gossip from Asia into my home via Twitter, Facebook, Google Reader and then all the more long-established methods of journalism. It is a cornucopia. But the problem with any over-flowing horn is that it is really only scarcity that creates the awareness of value. And in fact, the profession of journalism is losing both value and respect. The latest Gallup poll showed a recordhigh 57 per cent of Americans saying they had little or no trust in the mass media to do what the media has always proclaimed to be its primary mission - to report fully, accurately and fairly. Instead people look to the friends - their community - for information, for validation, for argument and for illumination. What is great about 2010 is that technology has created a completely new concept of community. And it has given that community new powers to inform and connect. Facebook status updates become a newsfeed created by people I know and even often like. A Twitter feed is a news service of facts, opinions and referrals from an ever-vigilant army of people with similar interests and proclivities. They alert me to news and articles that are almost guaranteed to fit my interests because we are a group that has formed around each other. And it is a self-correcting group, where each of us has the ability to fire, replace and refine the membership at will. No reader selected me to be editorin-chief of Reuters - I was selected by the corporation to lead the news service in its interest. Conversely, no corporation selected the people whom I follow on Twitter, no board set my blogroll, no executive committee befriended my Facebook pals. I did those things. What technology has done is it has upended the power equation to give control to the end consumer. The beauty of that is obvious - control

is always satisfying. The danger is that without care it becomes an information universe that is too hermetically sealed. The days of the all-powerful paternalistic editor may be dead, but what can't replace them is the era of people only having their preconceived ideas reinforced. What's needed is a new model, one that combines push and pull. What's needed is a publishing model that embraces both the professionalism of the journalist and the power of the community. The great press critic A. J. Liebling wrote that freedom of the press belongs to the man who owns one. Today's technology means that the means of production and the means of distribution actually belong to anyone with access to an Internet onramp. If you ask the public, "What will you pay for?" The answer is certainly a yes for tools (ipad, iphone, blackberry, android). The answer is certainly a yes for broadband and access. But what about the content? And what about those who create that content? Far too often the answer is "no". I know even when I last lived in Hong Kong 15 years ago this was an issue the FCC itself had to wrestle with - what was the ideal ratio of full-time correspondent members to journalist members to associate members to corporate members. I guess from seeing the special promotional offer the club has been running for new correspondent and journalist members that this is still an issue, both because there are fewer people who fit the bill, and also because those who do can't necessarily PAY the bill. I'm lucky to be leading a journalistic organisation 3,000 professionals strong - that's an extraordinary figure at a time when other organisations have been shedding staff. By comparison, in 1987, the year I joined Reuters in Hong Kong and the year I first became a member of this club, I was one of 1,581 journalists in the company. We've survived and thrived by changing. We aren't the agency we once were; tomorrow we will be even more different from today. My job is to ensure that survival and to ensure that the journalistic tradition of yesterday melds with the social media ethos. Let's start by thinking back two years. The photographs of distraught, confused and angry bankers leaving their

offices jobless helped symbolise the seismic shifts in the financial system 24 months ago. During the same period, thousands of journalists lost their livelihood too as the profession and craft changed almost beyond recognition. If we have learned anything from these past two years, it has been that pure facts are not enough. Pure facts don't tell enough of the story; pure facts won't earn their way. The arguments about whether the factual seeds of the financial crisis had been adequately reported are ultimately meaningless. The facts were there. But they weren't put together in a way that was compelling enough or powerful enough to change the course of events. We've been drowning in facts, and that deluge continues to threaten. How different from October 1851 when Julius Reuter set up his pigeon and telegraph shop, sending out facts to a world starved for them. Today, it's context, connectedness and community that matter. That's why the traditional agency or "wire" pouring out a never-ending stream of "more" can't be the answer. That's why we must be a service to our customers and to our readers. That's why this is the age of the publisher. Journalists who understand this will survive. Those that don't will become irrelevant. A publishing ethos is not defined by the number of stories we deliver. It is defined by our ability to keep our clients tuned in and returning. We will do that with a heightened knowledge of what they need, and with focused breaking news and insight that is fast, relevant, actionable and engaging. Deploying all our multimedia assets allows us to tell stories compellingly via packages of interlinked news and information. And we will enable clients to connect to each other, and to us. I'm as excited about content that gets created in a chatroom by journalists and readers interacting together as I am about a good story being pushed out. Sometimes I'm even more excited because the intelligent interaction between people who all know something about a topic can create a much smarter product than any one writer struggling at the computer alone. Is it journalism? Sometimes it is pure journalism.

Sometimes it's commentary. Sometimes it's just a sharing of ideas or the annotating of a graphic. But whatever you call it, it is an intelligent service between the journalist and the customer and that's something we should be aiming for. Why? Because like the "pure" journalism of old, it helps makes sense of the world. Why? Because it is news, data, content and information that is actionable because it adds insight to transparency. It's the community that interacts with information and in that interaction creates yet more and better content. It's the context and analysis around the news that helps people make better decisions, helps them do their jobs better, and gives them an edge in making sense out of the confusion around us. It is also the humility to know that the old one-way relationship between editor and audience has no place in the world any more. There's huge learning to be had from the audience. Some of it comes from listening to its expertise. Some of it comes from watching its behavior. Much of it comes from enabling the conversation you get when you combine facts, data, journalism, analysis and fact-based opinion in a really smart way. The rules of today's journalistic world are these: n Knowing the story is not enough. n Telling the story is only the beginning. n The conversation about the story is as important as the story itself. n The more you try to be paternalistic and n authoritative, the less people will believe you. n The more you cede control to your audience, the more people will respect you n The more you embrace new technology as a platform, the more your ideas will compete. n The more you abandon the faceless and characterless, the more you can set the agenda n The more you look beyond the story for connections, the more value you will have. And if you have value and no one else does, you will get paid. Simple? No. But it is exciting and transforming.Reuters Writer is Editor-in-Chief of Reuters news since January 2007.

Monday, October 18, 2010

General Motors says IPO pricing not set yet

Asian stocks gain for 7th wk on economic outlook

Weekly Review

KSE greens last wk as bulls eye earnings

KSE-100 Index Opening Closing Change % Change Turnover (mn)

10,260.48 10,431.84 171.36 1.67 450.02

LSE-25 Index Opening Closing Change % Change Turnover (mn)

3,192.48 3,244.41 51.93 1.63 19.48

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

2,610.22 2,668.49 58.27 2.23 0.93

Nawaz Ali KARACHI: During the last week, expectations of strong corporate results, higher international oil prices, and continued foreign interest kept the bulls in action at the Karachi Stock Exchange (KSE) --even political tensions couldnâ&#x20AC;&#x2122;t hold them back. The benchmark KSE 100Index increased by 171 points (1.67 per cent) to close at 10,431 points, KSE 30-Index rose by 165 points (1.66 per cent) to close at 10,094 points and KSE All Share Index grew by 116 points (1.62 per cent) to close at 7,267 points. Index touched a highest level of 10,476 points and a lowest of 10,243 points during the week. Saeed Khalid, analyst at Invest Cap said that the reason behind the return was the investors resetting their positions ahead of the upcoming

Major Gainers

Symbol RMPL SIEM MTL DREL BHAT

Change

1,370.00 1,189.99 480.90 734.00 189.00

60.75 39.99 37.08 34.01 26.65

Major Losers

Symbol

Change

WYETH 830.06 FZTM 320.00 FEROZ 87.94 NESTLE 1,941.00 LAKST 353.68

-79.94 -33.16 -21.06 -20.62 -17.87

Top 5 Volume Leaders

Symbol

Close Vol (mn)

LOTPTA JSCL BAFL NML DGKC

9.62 9.30 8.85 50.86 25.70

50.54 19.87 19.78 17.13 15.71

Active Issues Plus Minus Unchanged

239 174 19

Sector Updates FERTILISER 000 tonnes

AUTOMOBILE ASSEMBLER PAK SUZUKI MOTOR Units Production (July 09 to June 10) 71,998 Sales (July 09 to June 10) 73,993 Production (July 10) 7,509 Sales (July 10) 4,503

INDUS MOTOR CO Production (July 09 to June 10) 50,557 Sales (July 09 to June 10) 50,823 Production (July 10) 5,162 Sales (July 10) 4,999

HONDA ATLAS CAR Production (July 09 to June 10) 13,500 Sales (July 09 to June 10) 14,120 Production (July 10) 1,560 Sales (July 10) 1,272

DEWAN FAROOQ MOTORS Production (July 09 to June 10)1,218 Sales (July 09 to June 10) 1,371 Production (July 10) 41 Sales (July 10) 40

BANKING SECTOR Scheduled bank (Rs in mn) Deposit (August 20,10) 4,595,176 Advances (August 20,10) 3,304,533 Investments (August 20,10) 1,788,671 Spread (July 2010) 7.51%

OIL MARKETING CO (000 tons) MS (Jul 09 to June 10) MS (July 10) Kerosene (Jul 09 to June 10) Kerosene (July 10) JP (Jul 09 to June 10) JP (July 10) HSD (Jul 09 to June 10) HSD (July 10) LDO (Jul 09 to June 10) LDO (July 10) Fuel Oil (Jul 09 to June 10) Fuel Oil (July 10) Others (Jul 09 to June 10) Others (July 10)

PRICES (Ex-Refinery) MS (1 Sep 10) MS (1 Aug 10) MS % Chg Kerosene (1 Sep 10) Kerosene (1 Aug 10) Kerosene % Chg JP-1 (1 Sep 10) JP-1 (1 Aug 10) JP-1 % Chg HSD (1 Sep 10) HSD (1 Aug 10) HSD % Chg LDO (1 Sep 10) LDO (1 Aug 10) LDO % Chg Fuel Oil (1 Sep 10) Fuel Oil (1 Aug 10)

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

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

1,933 188 164 15 1,377 129 7,435 664 75 7 9,259 869 13 1

Rs 40.85 41.22 -0.90% 47.14 46.55 1.27% 47.37 46.78 1.26% 50.61 49.63 1.97% 46.37 45.29 2.38% 39,932 39,723

quarterly corporate results season. Moreover, the most important issue during the week was the NRO case which kept market in the check. Although the activity was little sluggish during the week but the investors somehow managed to raise better volumes in the market by the end of the last couple of trading sessions, he added. The week started on a bullish note on Monday where due to buying on expectations of good corporate results index closed the session 62 points up in a rally led mainly by the banking sector. But some profit taking ejected 30 points from the index the next day as investors preferred to square their positions ahead of recommencement of hearings on National Reconciliation Ordinance (NRO) by the Supreme Court on Oct 13. See # 5 Page 11

Wall Street weekly outlook

Foreclosure debacle to test stocksâ&#x20AC;&#x2122; rally NEW YORK: US banks will be in the limelight this week as several household names report earnings and investors worry a forced halt to foreclosure proceedings could hit the sector and end the recent rally. Bank shares fell sharply on Friday on very high volume, continuing a slide from the previous day. Although recovering some of their losses, Bank of America shares hit their lowest in over a year, while the KBW bank index fell 2.4 per cent. Shares of Bank of America, the nation's largest mortgage lender, have fallen 9 per cent during the week. Over 595.9 million shares of the company's stock traded on Friday, the most since April 2009 and over four times the 50-day moving average. Investors worry banks did not follow proper due diligence when foreclosing on homes whose owners were not making mortgage payments, which could result in costly litigation, fines and additional mortgage repurchases. Kevin Caron, market strategist at Stifel, Nicolaus & Co in Florham Park, New Jersey, said that situation could also weigh on the housing market if the uncertainty discouraged buyers from entering into contracts on properties under foreclosure. "That speculative investor on the margin may choose to not to engage in that activity, which means there's the potential that you could have some weakness in demand, particularly in the lower-end speculative range of the housing market," he said. Investors will pepper bank executives with questions when those companies present earnings reports this week. Banks reporting results include Wells Fargo, Bank of America, and Citigroup Inc, three of the largest mortgage lenders in the nation. The broad S&P financial sector is expected to show earnings of $27.7 billion in the third quarter, a 71 per cent increase over a year earlier, although third-quarter revenue growth is seen falling 6

per cent to $252.9 billion. However, earnings estimates have been cut on some banks. Financials with the biggest reductions in earnings estimates for the quarter in the latest week are Goldman Sachs, PNC Financial, and Citigroup, according to John Butters, director of US earnings at Thomson Reuters. The financial sector has been a conundrum in the latest market rally since the start of September. The KBW index has gained only 4 per cent at a time when the broader S&P 500 has rallied nearly 12 per cent. David Giroux, who runs T. Rowe Price's $9.4 billion Capital Appreciation Fund, said expectations that deflation would weigh on bank earnings in the near term was pressuring the sector. He said banks were now attractively valued and the sector is the fund's largest, making up nearly 15 per cent of assets. "Most of the large banks are asset sensitive, which means that as rates rise, their profits should rise," he said. "So if you're a big believer in deflation, which the market has become a big believer in ... financials do poorly." Giroux said a second round of stimulus from the Federal Reserve was unnecessary as inflation was already present in the system. Hopes the Fed will pump billions into the economy has helped drive stocks higher recently. The Fed will release its Beige Book during the week and that will provide another insight into the central bank's thinking on the economy. On Friday, Fed Chairman Ben Bernanke hinted more monetary stimulus was on the way. A number of other big US companies from a range of industries will also present their scorecards this week, giving investors more clues about the economy's health. They include Apple Inc, Caterpillar Inc and Johnson & Johnson. Early indications from this earnings season have been mixed. Google Inc blew past analysts' expectations on Friday,

driving its stock up 11.2 per cent, while lower-than- expected revenue at General Electric, often seen as a proxy for the economy, pushed its shares down 5.1 per cent. Signs in the options market suggest more volatility this week as the recent trend of a continuous slide in the volatility index seems to be coming to an end. "There is more call buying on the VIX now than put selling, which suggests that traders see a spike in VIX in the near term," said Randy Frederick, director of trading and derivatives at the Schwab Center for Financial Research in Austin, Texas. The Chicago Board Options Exchange Volatility Index, or VIX VIX.N, closed on Friday at 19.03, down 4.3 per cent, after rising above 21 during the day. The market has continued to move higher since the S&P 500 broke a resistance level at around 1,130 in the middle of September. Some chartists are now looking at an upside target of 1,228.74, the 61.8 per cent Fibonacci retracement from the 2007 high. This week may also see a socalled "golden cross" in the S&P 500 if the 50-day moving average rises above the 200-day -- a bullish sign for some traders. The 14-day moving average moved above the 50-day and the 200-day averages in September. Industrial production data will kick off the week, followed by Tuesday's report on September housing starts. A weak housing number could rattle investors at a time when they're already anxious about the housing sector. Housing starts are seen slipping to an annualised rate of 580,000 units, according to economists polled by Reuters. Elsewhere on the economic front, the Philly Fed index is among early indicators of October regional business activity leading up to the national surveys on manufacturing and services from the Institute for Supply Management at the end of the month. -Reuters

ABL 9MCY10 PAT seen at Rs5.58bn Amir Abidi KARACHI: The board meeting of Allied Bank Ltd (ABL) scheduled today (Monday October 18, 2010) will announce financial results of first 9 months of this year which ended on Sept 2010. At TFD, we expect ABL to post a PAT to the tune of Rs5.58 billion during 9MCY10 as compared to Rs5.01 billion during the same period last year showing growth of 11.4 per cent on year-on-year (YoY) basis. This translates into an EPS of Rs7.14 for the period against Rs6.41 posted in the same period last year. We do not predict any payout with the results as ABL has

already paid cash dividend with its half yearly results for the year 2010. The growth of 11.4 per cent in bottom line will be backed by healthy increase in NIMs that would give rise to 17.5 per cent YoY increase in net interest income to Rs16.01 billion compared to Rs13.62 billion last year mainly due to consequent improvement in CASA ratio. Furthermore, decrease in provisions by 9.7 per cent to Rs3.01 billion would further boost profitability. Non interest income is likely to decline by 18.1 per cent to Rs3.85 billion against Rs4.98 billion due to lower fee income and capital gain comparing previous year same period.

Gulf stocks mkt

SABIC helps lift Saudi index DUBAI: Heavyweight Saudi Basic Industries Corp (SABIC) lifted the index TASI slightly, and could determine the direction of activity on the bourse this week as trading remains muted ahead of other major earnings. SABIC rose 0.9 per cent, helping the benchmark rise 0.1 per cent to 6,235 points, but trading has been sideways throughout the session. "We're expecting SABIC announcement (of third quarter results) before Wednesday, this could have a significant reflection on the index," said Musa Haddad, head trader in the asset management group at NBAD. "Banking sector results came in below expectations and this gave momentum to the downside." SABIC was expected to announce earnings after the market closes on Sunday. Dubai's index DFM ended lower on profit-taking but managed to reverse some of the session's losses as trading remained muted ahead of third quarter-earnings. Construction giant Arabtec lost1.8 per cent, having hit a near-five month high last week. "The market is seeing some profit-taking on the downside, and it was due for a short-term correction," says Musa Haddad, head trader in the asset management group at NBAD. The benchmark slipped 0.1 per cent to 1,744 points. Trading on other Gulf Arab bourses was also muted. Abu Dhabi's index ADI rose 0.2 per cent to 2,763 points, Kuwait's measure KWSE gained 0.3 per cent and ended at 7,034 points and Bahrain's bourse BAX inched up 0.09 per cent to 1,461 points. -Reuters

Dhiyan

TAKE CUE FROM POLITICALS Salman Naqvi, Head of Sales Aba Ali Habib Securities Performance of the market depends upon the current political situation. However, technically speaking, the market is strong as the future contracts are oversold therefore we can expect a good show as soon as the situation improves in the political corridors. Investors are advised to readjust there stances according to what developments the political front has to offer which, if it moves towards reconciliation would be the cue to invest in oil & gas, power, (selective) bank, cement, and fertiliers stocks at dips. Market might open positive today.

Zia Shaafi, Senior equity dealer & Technical analyst Pearl Securities Technically, market should witness a correction at the psychological level of 10,500 points. Investors are therefore advised to offload major part of their holdings while the new ones better adopt 'wait & see' strategy till smoke clears on the political front. As far as triggers are concerned, good corporate results, launch of Margin Trading System (MTS), settlement of political issues, and better law and order situation would spur the market to go bullish. Market would be in pressure today.

Monday, October 18, 2010

Market

KSE 100 Index

Symbols

Volume

450,023,156

Value

15,316,196,618

Trades

251,935

Advanced Declined Unchanged Total

239 174 19 432

Current High Low Change

All Share Index

10,431.84 10,476.32 10,243.72 h171.36

Current High Low Change

OIL AND GAS

Paid up Cap(mn)

Company

Open

5.61 368.59

High

High Low 1,338.46 1,283.96 Total cos Defaulter cos P/BV (x) ROE (%) 4.15 37.01 Low

Close Chg

Last 60 days High Low

Volume

576

Attock Refinery

853 16.52

90.88

4.75

8858164

92.65

Mari Gas Company

735 16.18 112.39

119.40 110.02 119.40

7.01

568809

138.45

National RefinerySPOT

800

230.84 215.25 226.39 10.82

5.64 215.57

Oil & Gas Development XD 43009 10.43 147.21

Pak Petroleum Pak OilfieldsSPOT Pak Refinery Limited

92.50

86.40

972353

374.20

1178327 230.84

250

300

73.47

AUTOMOBILE AND PARTS

200

Performance of SR Automobile and Parts Index

183.25

125

3.96

6027476 153.00

133.00

82.5

6.14

4298345 214.10

168.70

130

20B

2365

6.32 244.55

251.24 243.60 248.88

4.33

4045534 251.24

1715

4.62 279.13

Shell Gas LPG

226 14.13

Shell Pakistan XD

685

30.01

9.96 193.91

64.84

77.02 15.26

280.99 272.55 273.06 -6.07 32.50

29.10

213.17

180

255

79.50

48.26

3791584 289.45

233.10

285348

31.36

1.35

190843

39.80

27.32

197.00 193.00 194.25

0.34

152635

244.00

188.00

330

CHEMICALS Performance of SR Chemicals Index Open 1,163.54 Turnover 91,288,117 P/E (x) 7.34 Company

High Low 1,194.87 1,160.93 Total cos Defaulter cos P/BV (x) ROE (%) 2.57 35.00

Close 1,179.27 Listed cap 52,251.88 mn Payout (%) 48.81

Change % Change 15.73 1.35 Market cap 200-Day High 266,156.94 mn Div Yield (%) 200-Day Low 6.65 -

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1.36

11.75

12.75

9.72

10.64 -1.11

33933

16.78

9.67

72.94

76.90

72.50

76.00 3.06

Bawany AirXDXR BOC (Pak)

250

7065

82.50

66.90

25504

185.88

155.38

10B

2010 Div BR (%) (%) 5 15

1.41

1.53

1.32

1.46 0.05

742809

2.21

1.28

4.42

11.71

12.50

11.60

11.84 0.13

17791

13.60

10.85

5938390 194.59

165.60

3277

9.08 177.44 -

10.33

Fauji Fertilizer

6785

7.36 107.34

Fauji Fert. Bin Qasim

9341

7.49

ICI Pakistan

1388

7.24 122.40

Lotte Pakistan Mandviwala Nimir Ind Chemical

28.57

10.88

10.17

10.61 0.28

109.00 106.80 108.15 0.81 30.10

28.65

29.43 0.86

123.70 120.60 121.50 -0.90

2957701

102.96 131.5

12.46

2698868 113.39

10B

26.59

128.30

109.50

13909784 30.65 531124

6010B 40R

9.02

3.34

8.92

9.72

8.71

9.62 0.70

50536925

9.72

6.75

1.79

2.75

1.22

1.45 -0.34

22564

3.24

1.06

1106 74.00

1.34

1.57

1.31

1.48 0.14

1111648

2.90

2.25

2.43 0.12

59908

3.80

2.00

125.00 120.00 121.40 -3.50

27184

128.01

110.03

1273990

11.09

7.67

15310

48.00

41.00

120

1.83

Sitara Chem Ind SPOT

204

5.36 124.90

2.31

Sitara Peroxide

551

8.53

5.09

42.37

9.65

8.17

9.37 0.84

43.50

41.77

43.00 0.63

1.77

1.16

FORESTRY AND PAPER Performance of SR Forestry & Paper Index Open 1,154.94 Turnover 253,315 P/E (x) 5.94 Company

Paid up Cap(mn)

High Low 1,167.01 1,137.21 Total cos Defaulter cos P/BV (x) ROE (%) 0.44 7.47

Close 1,149.29 Listed cap 1,186.83 mn Payout (%) 25.28

Open

High

Low

Close Chg

Volume

Change % Change -5.65 -0.49 Market cap 200-Day High 3,183.75 mn Div Yield (%) 200-Day Low 4.25 -

Last 60 days High Low

Century Paper

707

19.11

19.49

18.50

18.88 -0.23

214295

22.70

17.31

Security Paper

411

4.73

40.00

39.50

40.00 0.00

18987

50.40

38.10

2009 Div BR (%) (%) - 425R 50

High Low 956.20 908.12 Total cos Defaulter cos P/BV (x) ROE (%) 0.96 33.10

Close 918.71 Listed cap 3,596.11 mn Payout (%) 30.91

Change % Change -39.60 -4.13 Market cap 200-Day High 8,822.68 mn Div Yield (%) 200-Day Low 10.61 -

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Crescent Steel

565

3.38

24.98

25.00

24.00

24.97 -0.01

101022

31.73

23.75

Dost Steels Ltd

675

2.06

2.44

2.00

2.27 0.21

317705

3.17

1.65

Huffaz Pipe

555

5.40

12.69

13.50

12.50

12.59 -0.10

41503

16.75

12.25

30B

1199

4.48

47.12

48.00

45.93

45.99 -1.13

119156

70.71

45.93

20B

Company

International Ind

Last 60 days High Low

2009 Div BR (%) (%)

CONSTRUCTION AND MATERIALS Open 918.47 Turnover 39,967,680 P/E (x) 6.92 Company

High Low 965.91 914.85 Total cos Defaulter cos P/BV (x) ROE (%) 0.49 7.10

Paid up Cap(mn)

Open

High

Low

Close Chg

1828

3.25

3.50

3.01

3.10 -0.15

866

Al-Abbas Cement

Close 950.17 Listed cap 54,792.74 mn Payout (%) 19.04

Change % Change 31.70 3.45 Market cap 200-Day High 69,877.95 mn Div Yield (%) 200-Day Low 2.75 -

Last 60 days High Low

Volume

2.80

5.05

63.20

65.50

71.90

62.00

20B

Berger Paints

182

14.61

15.69

14.12

15.01 0.40

32493

20.00

14.01

- 122R

956

11.29

11.19

10.17

10.70 -0.59

10917

12.50

8.90

Dadabhoy Cement

982 12.00

1.52

2.20

62.51

1.51

63.44 0.24

1.56 0.04

4.20

2010 Div BR (%) (%)

Cherat Cement

Attock CementSPOT

55227

2009 Div BR (%) (%)

436292

69569

2.74

1.30

- 100R 50

Dandot Cement

948

1.80

2.00

1.35

1.88 0.08

34556

3.90

1.02

Dewan Cement

3574

1.60

1.99

1.50

1.55 -0.05

458042

2.20

1.30

DG Khan Cement Ltd

3651 35.69

24.99

26.00

24.84

25.70 0.71

15708506 28.74

23.02

20R

3.00

3.95

2.50

3.50 0.50

27383

5.15

2.11

Fauji Cement

EMCO Ind

6933 12.48

350

4.74

5.10

4.70

4.99 0.25

4216311

5.50

4.50

Flying Cement Ltd

1760

1.87

2.04

1.74

1.93 0.06

290578

2.30

1.74

Haydery Const

0.99

0.63

0.88 -0.11

28688

2.00

0.25

Kohat Cement

1288

5.98

6.05

5.85

5.90 -0.08

1087012

6.80

5.50

Lucky CementSPOT

3234

6.58

72.63

74.00

72.20

73.29 0.66

4083450

74.00

62.60

Maple Leaf Cement

5261

2.82

2.96

2.73

2.84 0.02

473887

3.77

2.51

Pioneer Cement

2228

8.03

8.40

7.61

8.02 -0.01

349698

8.47

6.80

7982122.00 19.75

21.27

18.00

21.22 1.47

43781

21.80

17.74

50R

Thatta Cement

GENERAL INDUSTRIALS Performance of SR General Industrials Index Open 890.44 Turnover 1,461,023 P/E (x) 1.59 Company

Paid up Cap(mn)

Cherat PapersackXDXB ECOPACK Ltd Ghani GlassXDXB Packages Ltd

115

PE 3.30

Open 46.52

High 46.99

High Low 911.46 875.18 Total cos Defaulter cos P/BV (x) ROE (%) 0.70 43.91 Low 34.00

Close Chg 34.65-11.87

Close 900.23 Listed cap 3,043.31 mn Payout (%) 15.55

Volume 293630

Change % Change 9.78 1.10 Market cap 200-Day High 33,560.33 mn Div Yield (%) 200-Day Low 9.81 -

Last 60 days High Low 51.05

34.00

2009 Div BR (%) (%) -

2010 Div BR (%) (%) 20

25B

230

2.00

2.64

2.05

2.29 0.29

343706

2.89

1.70

1067

5.12

59.66

61.10

50.00

50.05 -9.61

218604

61.99

50.00

10B

107.89 100.50 106.31 4.43

675300

125.96

98.00

32.5

844 16.11 101.88

INDUSTRIAL ENGINEERING High Low 1,552.23 1,426.63 Total cos Defaulter cos P/BV (x) ROE (%) 2.86 38.02

Close 1,529.04 Listed cap 1,336.62 mn Payout (%) 131.49

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

Last 60 days High Low

3.16

19.62

19.85

14.62

15.50 -4.12

16426

22.69

14.62

223.00 210.01 210.71 -2.36

95288

227.45

200.26

48473

51.99

35.25

215

5.05 213.07

104

5.23

Dewan Auto Engineering 214

50.04

46.85

41.50

0.70

1.00

0.45

Ghandhara Ind

213

2.08

12.25

13.70

11.29

Millat TractorsXDXB

366

6.16 443.82

45.30 -4.74 0.50 -0.20 13.20

0.95

488.50 437.31 480.90 37.08

9503

2009 Div BR (%) (%)

2010 Div BR (%) (%)

64.06

65.00

60.86

63.05

-1.01

624953

87.86

60.86

20B

39.00

38.00

-0.70

11836

41.00

34.50

Open 1,065.36 Turnover 1,350,568 P/E (x) 3.81 Company

Paid up Cap(mn)

Agriautos IndSPOT 144 Atlas Battery 101 Dewan Motors 890 Ghandhara Nissan 450 Ghani Automobile Ind 200 Honda Atlas Cars 1428 Indus Motors 786 Pak Suzuki 823 Sazgar EngineeringXDXB 150 Transmission 117

Open

5.17 70.00 5.71 137.97 1.34 4.13 3.53 4.57 - 10.71 5.23 224.68 9.32 73.80 5.14 24.50 2.00 2.19

High

High Low 1,104.37 1,050.02 Total cos Defaulter cos P/BV (x) ROE (%) 0.97 25.35 Low

Close Chg

72.50 67.55 70.84 0.84 151.36 138.00 151.36 13.39 1.62 1.32 1.46 0.12 4.75 4.03 4.30 0.17 5.25 4.00 4.20 -0.37 11.50 10.37 10.62 -0.09 234.90 220.50 229.25 4.57 77.00 73.00 75.00 1.20 26.00 19.50 19.77 -4.73 3.00 1.65 2.00 -0.19

Close 1,081.24 Listed cap 6,768.53 mn Payout (%) 20.42

Volume 234642 64569 2831566 70330 9456 119589 204026 33579 58778 25011

Change % Change 15.89 1.49 Market cap 200-Day High 38,993.67 mn Div Yield (%) 200-Day Low 5.36 -

Last 60 days High Low 78.39 208.25 2.10 6.37 5.70 13.50 287.00 89.99 27.85 3.25

63.01 131.00 1.16 4.03 3.55 9.65 212.29 69.25 19.50 1.53

2009 Div BR (%) (%)

2010 Div BR (%) (%)

40 100 100 5 2

90 100 150 10 -

20B 20B -

400

150

20B

10B

1.00

0.36

11.29

1017003 597.90

390.00

450

25B

650

25B

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

65.63

Total Assets (Rs in mn)

17,566.02

MA (10-day)

2.60

Total Equity (Rs in mn)

11,379.05

MA (100-day)

2.88

Revenue (Rs in mn)

MA (200-day)

3.65

Interest Expense

1st Support

2.72

Loss after Taxation

2nd Support

2.64

EPS 09 (Rs)

1st Resistance

2.93

Book value / share (Rs)

2nd Resistance

3.06

PE 10 E (x)

Pivot

2.85

PBV (x)

8,408.28 523.03 (490.82) (0.570) 13.22 0.21

WTL closed up 0.22 at 2.82. Volume was 1 per cent below average and Bollinger Bands were 23 per cent wider than normal. The company's loss after taxation stood at Rs410.586 million which translates into a Loss Per Share of Rs0.48 for the half year of current calendar year (1HCY10). WTL is currently 22.5 per cent below its 200-day moving average and is displaying an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into WTL (mildly bullish). Trend forecasting oscillators are currently bullish on WTL.

TRG Pakistan Limited

FOOD PRODUCERS Performance of SR Food Producers Index Open 1,464.26 Turnover 923,416 P/E (x) 30.62 Company AL-Noor Sugar Ansari Sugar Chashma Sugar Crescent Sugar Faran Sugar Habib Sugar Habib-ADM Ltd XD J D WSugar Mehran Sugar National Foods Noon Pakistan Premier Sugar Shahmurad Sugar Shahtaj Sugar Shakarganj Mills Tandlianwala

Paid up Cap(mn) 186 244 287 214 217 600 200 490 143 414 48 38 211 120 695 1177

PE 4.27 0.19 0.71 11.32 3.16 6.34 3.56 2.41 3.09 19.45 9.89 6.70 16.16 290.00

Open 42.00 6.00 9.15 6.48 18.55 29.14 13.00 66.00 53.25 41.43 21.00 33.01 11.49 60.90 4.01 28.50

High 42.90 6.00 9.15 6.40 20.00 32.25 13.35 72.00 55.40 42.00 21.52 38.80 11.40 68.00 4.73 31.90

High Low 1,526.28 1,442.54 Total cos Defaulter cos P/BV (x) ROE (%) 9.28 30.30 Low 41.01 4.03 8.75 6.00 18.75 29.25 12.20 66.01 50.50 39.15 18.95 33.00 10.85 57.00 3.90 28.50

Close Chg 42.00 4.07 8.80 6.00 19.56 30.74 12.68 71.99 55.22 40.66 21.27 36.53 11.15 68.00 4.21 31.90

0.00 -1.93 -0.35 -0.48 1.01 1.60 -0.32 5.99 1.97 -0.77 0.27 3.52 -0.34 7.10 0.20 3.40

Close 1,479.46 Listed cap 11,335.33 mn Payout (%) 30.57

Volume

Change % Change 15.21 1.04 Market cap 200-Day High 189,871.26 mn Div Yield (%) 200-Day Low 1.00 -

Last 60 days High Low

10655 101000 10500 50000 14010 388312 31475 17745 28865 7203 11439 16363 33488 19745 17888 8920

47.35 6.00 11.40 7.80 23.50 32.25 16.98 72.00 58.74 65.29 33.06 43.60 11.90 83.03 5.00 35.50

39.25 3.80 8.00 5.50 15.90 24.60 12.20 60.10 48.50 39.15 18.95 32.50 7.40 44.50 3.02 22.45

2009 Div BR (%) (%) 40 17.5 35 40 40 35 30 15 100 -

25B 30B 25B 10B -

2010 Div BR (%) (%) 40 0 12.5R 25 10B 12 12 -

Fundamental Highlights As on Jun 30, 2009

Technical Analysis RSI (14-day)

51.70

Total Assets (Rs in mn)

2,549.61

MA (10-day)

4.22

Total Equity (Rs in mn)

2,509.06

MA (100-day)

4.10

Revenue (Rs in mn)

28.92

MA (200-day)

4.02

Interest Expense

1st Support

3.94

Profit after Taxation

2nd Support

3.84

EPS 09 (Rs)

1st Resistance

4.20

Book value / share (Rs)

0.10

2nd Resistance

4.36

PE 10 E (x)

Pivot

4.10

PBV (x)

766.33 1.988 6.51 0.62

TRG closed down -0.26 at 4.02. Volume was 9 per cent above average and Bollinger Bands were 6 per cent wider than normal. The company's loss after taxation stood at Rs511.212 million which translates into a Loss Per Share of Rs1.56 for the nine months of fiscal year (9MFY10). TRG is currently 0.4 per cent above its 200-day moving average and is displaying an upward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into TRG (mildly bullish). Trend forecasting oscillators are currently bullish on TRG.

NIB Bank Limited

HOUSEHOLD GOODS Performance of SR Household Goods Index Open 1,049.48 Turnover 507,955 P/E (x) 4.27

Pak Elektron Tariq Glass Ind

High Low 1,152.85 1,077.10 Total cos Defaulter cos P/BV (x) ROE (%) 0.45 10.64

Close 1,136.75 Listed cap 3,763.71 mn Payout (%) 6.27

Paid up Cap(mn)

Open

High

Low

Close Chg

Volume

1174 231

2.89 2.77

13.84 17.18

13.97 18.15

13.50 16.60

13.52 -0.32 17.03 -0.15

321782 152214

Change % Change 87.27 8.32 Market cap 200-Day High 5,602.11 mn Div Yield (%) 200-Day Low 1.47 -

Last 60 days High Low 15.95 19.12

12.17 14.45

2009 Div BR (%) (%) -

10B -

2010 Div BR (%) (%) 17.5

10B -

PERSONAL GOODS Performance of SR Personal Goods Index Open 918.63 Turnover 50,464,980 P/E (x) 6.36 Company

Paid up Cap(mn)

High Low 928.86 902.34 Total cos Defaulter cos P/BV (x) ROE (%) 0.55 8.64

Open

High

Low

Amtex Limited XD 2415 2.86 11.98 Artistic DenimSPOT 840 5.74 21.15 Aruj Garments 62 7.89 4.75 Azam Textile 133 0.56 2.49 Azgard Nine 4493 254.75 10.39 Babri Cotton 29 0.37 17.01 Bannu Woolen 76 1.18 11.45 Bilal Fibres 141 0.60 Chakwal SpinningSPOT 400 1.29 1.70 Chenab Limited 1150 3.54 Colony Mills Ltd 2442 2.59 2.90 Crescent Jute 238 0.80 D S Ind Ltd 600 1.50 Dawood Lawrencepur 514 9.53 41.00 Din TextileXDXB 204 1.19 26.40 Ellcot SpinningSPOT 110 1.80 20.26 Fazal Cloth 188 2.00 42.75 Gadoon Textile 234 1.22 45.98 Gillette Pakistan 192 45.70 63.89 Gul Ahmed Textile 635 2.99 20.99 Gulistan Spinning 146 1.40 7.13 Gulshan Spinning 185 1.65 7.99 Hira Textile Mills Ltd. 716 1.22 4.68 Ibrahim FibresSPOT 3105 3.53 35.89 Ideal Spinning 99 0.66 3.31 Idrees Textile 180 2.43 4.10 Indus DyeingSPOT 181 2.82 209.71 Int KnitwearSPOT 32 5.40 10.90 Khalid Siraj 107 0.80 Kohinoor Ind 303 1.46 Kohinoor Mills 509 2.17 Kohinoor Spinning 1300 1.23 1.25 Kohinoor Textile 1455 2.82 5.41 Maqbool Textile 168 2.12 7.75 Nagina CottonSPOT 187 1.31 16.16 Nishat (Chunian) 1586 2.42 18.42 Nishat Mills 3516 5.98 49.24 Pak Synthetic 560 5.71 6.15 Paramount Spinning 158 1.44 9.20 Premium TextileSPOT 62 0.93 29.00 ProsperitySPOT 185 2.59 16.03 Ravi Textile 250 4.59 1.88 Redco Textile 213 4.67 0.98 Reliance Weaving 308 0.85 10.13 Saif Textile 264 1.37 4.63 Sally Textile 88 0.35 4.47 Salman Noman 40 4.43 3.01 Samin Textile XR 134 7.26 Sapphire FibreSPOT 197 3.05 99.93 Sargoda Spinning 312 0.51 1.51 Saritow Spinning 133 0.58 2.38 Service Ind 120 4.77 185.55 Shahpur Textile 140 1.15 0.95 Shahtaj TextileSPOT 97 - 20.00 Sunrays Textile 69 1.06 33.63 Suraj Cotton 180 1.25 36.49 Tata Textile XD 173 0.75 17.64 Thal LimitedSPOT 256 4.14 106.85 Treet Corp 418 7.89 37.98 Yousuf Weaving 400 6.47 1.23 Zephyr Textile Ltd 594 2.99

12.30 24.05 4.50 3.23 10.70 16.15 14.00 1.18 1.98 3.87 3.20 1.15 1.80 41.88 26.00 22.20 49.30 48.00 66.75 23.40 8.13 9.24 4.78 38.40 3.50 4.40 240.00 10.70 0.80 1.65 2.50 1.84 5.60 11.49 17.50 19.27 51.12 5.84 9.88 29.50 19.25 1.99 1.00 11.69 5.44 6.20 2.74 8.00 115.50 2.50 2.99 188.90 1.01 20.79 34.98 36.80 19.00 112.80 38.80 1.25 3.50

10.71 21.50 4.25 2.35 10.05 13.25 12.45 0.75 1.16 3.20 2.60 0.70 1.49 39.00 20.80 20.15 41.00 45.25 60.00 21.50 5.62 8.00 4.20 34.05 3.24 4.02 209.03 9.90 0.34 1.25 1.62 1.22 5.00 8.75 16.00 17.82 48.91 5.16 7.65 28.21 16.00 1.68 0.61 10.40 3.50 4.70 2.26 6.46 100.01 1.87 2.00 176.00 0.80 19.35 34.00 35.00 17.50 104.50 37.50 0.86 2.60

Close Chg 10.71 22.86 4.50 3.09 10.19 13.25 13.60 1.10 1.98 3.26 2.80 0.99 1.65 39.85 23.10 21.10 49.20 45.51 61.70 22.52 6.35 9.10 4.25 38.16 3.40 4.25 213.59 10.20 0.69 1.42 2.01 1.35 5.38 11.25 17.45 19.11 50.86 5.25 9.88 29.00 17.85 1.79 0.70 11.15 4.00 5.35 2.26 7.99 112.00 1.96 2.10 185.33 0.83 20.77 34.95 35.00 18.97 110.51 38.27 1.10 3.25

-1.27 1.71 -0.25 0.60 -0.20 -3.76 2.15 0.50 0.28 -0.28 -0.10 0.19 0.15 -1.15 -3.30 0.84 6.45 -0.47 -2.19 1.53 -0.78 1.11 -0.43 2.27 0.09 0.15 3.88 -0.70 -0.11 -0.04 -0.16 0.10 -0.03 3.50 1.29 0.69 1.62 -0.90 0.68 0.00 1.82 -0.09 -0.28 1.02 -0.63 0.88 -0.75 0.73 12.07 0.45 -0.28 -0.22 -0.12 0.77 1.32 -1.49 1.33 3.66 0.29 -0.13 0.26

Close 917.84 Listed cap 47,070.70 mn Payout (%) 16.68

Volume

Change % Change -0.79 -0.09 Market cap 200-Day High 115,684.12 mn Div Yield (%) 200-Day Low 2.62 -

Last 60 days High Low

1424002 20.45 136776 24.05 11200 6.70 771098 3.23 4819425 13.30 15000 18.75 68603 14.00 21000 1.96 25352 2.56 99067 4.98 87422 5.00 10840 1.90 1170878 2.49 49871 51.99 6389 30.90 44809 25.45 6500 49.30 27506 48.30 5665 73.00 10199 23.40 36125 8.13 400009 9.24 944555 4.85 70733 39.99 26140 4.79 43913 5.35 22821 269.50 10003 10.90 20001 1.99 373267 2.00 22942 3.79 92157 1.84 141333 6.30 26374 11.49 27494 17.50 13865334 19.49 17126762 53.14 49982 7.90 16827 10.17 11923 30.90 29750 21.47 895280 4.69 20000 1.20 629170 12.00 12887 5.44 521054 6.20 25100 3.11 13883 8.69 6019 115.50 21924 2.50 128336 2.99 19617 225.99 25818 2.26 76598 21.50 40834 35.00 272314 37.50 24398 19.70 568931 114.99 320035 49.49 14400 1.90 129105 4.99

10.71 17.55 3.50 1.35 8.55 9.50 7.50 0.55 0.70 2.93 2.23 0.48 1.44 37.08 20.80 20.15 39.23 33.80 57.50 19.99 5.00 5.31 2.52 34.05 2.02 2.56 199.70 7.00 0.10 1.01 1.60 0.56 4.00 3.25 12.00 14.64 40.81 5.16 6.00 26.00 15.75 1.38 0.50 6.91 2.01 2.74 1.30 5.02 91.50 0.31 1.01 176.00 0.25 14.75 30.03 29.50 12.75 97.00 37.20 0.73 1.50

2009 Div BR (%) (%) 20 7.5 5 15 20 12.5 7.5 20 200 20 10 15 20 -

2010 Div BR (%) (%)

30 20 7.5 - 15B 20 5 5 20 10B 35 70 - 12.5 10B 10 10B 10 20B 10 20 10 6 5 - 22.5 - 20SD 50R 15 25 45R 10B 10 10B 50 30 - 25SD 10 5B - 100R 15 5 45 50 25 20B 80 20B -

Performance of SR Pharma and Bio Tech Index Open 833.87 Turnover 258,895 P/E (x) 6.17

2010 Div BR (%) (%)

19.75

190373

Last 60 days High Low

PHARMA AND BIO TECH

Ados Pak AL-Ghazi Tractor

Volume

38.70

Change % Change 85.06 5.89 Market cap 200-Day High 31,831.38 mn Div Yield (%) 200-Day Low 17.50 -

Company

Bolan CastingXDXB

Close Chg

7.74

Performance of SR Industrial Engineering Index Open 1,443.98 Turnover 1,405,052 P/E (x) 7.51

Low

5.18

1321

2010 Div BR (%) (%)

Performance of SR Construction and Materials Index

High

Pak Int Cont. Terminal XD 1092

Company

Performance of SR Industrial Metals and Mining Index

Open

PNSC

2010 Div BR (%) (%)

INDUSTRIAL METALS AND MINING Open 958.31 Turnover 682,571 P/E (x) 2.91

15142

Shaffi Chemical

Wah-NobleSPOT

181.20 174.60 177.14 -0.30

Paid up Cap(mn)

1203

22000

Company

10R

3663

Engro Corporation Ltd

171.90 168.05 169.01 -1.24

Dawood Hercules

Fatima Fertilizer

7.80 170.25

2009 Div BR (%) (%)

9.72

Dewan Salman Dynea PakSPOT

WorldCall Telecom Limited

Change % Change -17.03 -2.45 Market cap 200-Day High 12,091.26 mn Div Yield (%) 200-Day Low 4.22 -

106.00 32.17 100B

151.50 146.62 151.17

77.05

Close 676.82 Listed cap 3,242.17 mn Payout (%) 11.08

295.10

189.40 179.81 186.37

61.76

High Low 692.46 652.32 Total cos Defaulter cos P/BV (x) ROE (%) 0.67 25.53

2010 Div BR (%) (%)

5.84 180.23

Open 693.86 Turnover 1,223,109 P/E (x) 2.63

2009 Div BR (%) (%)

11950

350

PSO XD

374.20 362.00 364.51 -4.08

10,094.80 10,166.13 9,905.42 h165.23

Performance of SR Industrial Transportation Index

Close Change % Change 1,327.22 48.84 3.82 Listed cap Market cap 200-Day High 65,194.15 mn 1,055,066.86 mn Payout (%) Div Yield (%) 200-Day Low 68.56 6.11 -

Attock PetroleumSPOT

86.13

Current High Low Change

7,267.31 7,295.94 7,144.40 h116.12

Alert ! Unusual Movements

INDUSTRIAL TRANSPORTATION

Performance of SR Oil and Gas Index Open 1,278.38 Turnover 33,555,111 P/E (x) 11.22

KSE 30 Index

Company Abbott (Lab) Ferozsons (Lab) XB GlaxoSmithKline Highnoon (Lab) Otsuka Pak Searle PakSPOT

Paid up Cap(mn) 979 250 1707 165 100 306

High Low 862.50 832.79 Total cos Defaulter cos P/BV (x) ROE (%) 1.38 22.31

Close 843.96 Listed cap 3,904.20 mn Payout (%) 44.54

Open

High

Low

Close Chg

Volume

7.97 92.00 5.77 109.00 12.54 68.48 6.44 24.00 6.53 28.06 5.41 62.65

96.40 113.00 70.50 24.75 30.00 64.10

90.50 86.95 68.06 23.50 27.50 62.00

90.90 -1.10 87.94 -21.06 69.49 1.01 23.71 -0.29 29.26 1.20 63.11 0.46

26741 18441 33160 23689 10103 113885

Change % Change 10.10 1.21 Market cap 200-Day High 28,072.30 mn Div Yield (%) 200-Day Low 7.22 -

Last 60 days High Low 96.40 124.00 83.39 25.79 34.99 64.19

77.00 86.95 65.00 22.10 27.50 53.36

2009 Div BR (%) (%) 120 10 50 25 15 15

20B 15B

2010 Div BR (%) (%) 20 30

20B -

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

52.18

Total Assets (Rs in mn)

MA (10-day)

2.85

Total Equity (Rs in mn)

41,643.27

MA (100-day)

2.99

Revenue (Rs in mn)

18,272.36

MA (200-day)

3.74

Interest Expense

208,118.96

12,872.36

1st Support

2.80

Profit after Taxation

2nd Support

2.72

EPS 09 (Rs)

0.171

1st Resistance

2.98

Book value / share (Rs)

10.30

2nd Resistance

3.08

PE 10 E (x)

Pivot

2.90

PBV (x)

691.05

0.27

NIB closed down -0.25 at 2.83. Volume was 20 per cent below average and Bollinger Bands were 31 per cent wider than normal. The company's loss after taxation stood at Rs1.944 billion which translates into a Loss Per Share of Rs0.48 for the half year of current calendar year (1HCY10). NIB is currently 24.4 per cent below its 200-day moving average and is displaying an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect volume flowing into and out of NIB at a relatively equal pace. Trend forecasting oscillators are currently bullish on NIB.

Atlas Bank Limited

Fundamental Highlights As on Dec 31, 2009

Technical Analysis RSI (14-day)

55.62

Total Assets (Rs in mn)

MA (10-day)

2.19

Total Equity (Rs in mn)

MA (100-day)

2.07

Revenue (Rs in mn)

30,869.51 2,482.06 3,387.93

MA (200-day)

2.53

Interest Expense

1st Support

2.10

Loss after Taxation

3,189.33

2nd Support

2.00

EPS 09 (Rs)

1st Resistance

2.25

Book value / share (Rs)

2nd Resistance

2.30

PE 10 E (x)

Pivot

2.15

PBV (x)

(1,703.11) (3.405) 4.96 0.44

ATBL closed down -0.01 at 2.17. Volume was 134 per cent above average and Bollinger Bands were 120 per cent wider than normal. The company's loss after taxation stood at Rs942.176 million which translates into a Loss Per Share of Rs1.88 for the half year of current calendar year (1HCY10). ATBL is currently 14.5 per cent below its 200-day moving average and is displaying an upward trend. Volatility is high as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect very strong flows of volume into ATBL (bullish). Trend forecasting oscillators are currently bullish on ATBL.

BOOK CLOSURES Company

From

Berger Paints Pakistan P.T.C.L Sigma Leasing Corporation Ali Asghar Textile Mills Arpak International Artistic Dewan Mills Biafo Industries Central Forest Products Fauji Cement Co. Fecto Cement Huffaz Seamless Pipe Industries Lucky Cement National Refinery Orix Leasing Pakistan Pakistan Oilfields Towellers Ltd. Transmission Engineering 1st Dawood Investment Bank Attock Cement Pakistan Attock Petroleum Dawood Capital Management Dost Steels Ellcot Spinning Mills Escort Investment Bank First Al-Noor Modaraba First Imrooz Modaraba Gauhar Engineering Ghazi Fabrics International Invest & Finance Securities Mahmood Textile Nishat Power Premium Textile Mills Prosperity Weaving Mills

18-Oct 18-Oct 18-Oct 19-Oct 19-Oct 19-Oct 19-Oct 19-Oct 19-Oct 19-Oct 19-Oct 19-Oct 19-Oct 19-Oct 19-Oct 19-Oct 19-Oct 20-Oct 20-Oct 20-Oct 20-Oct 20-Oct 20-Oct 20-Oct 20-Oct 20-Oct 20-Oct 20-Oct 20-Oct 20-Oct 20-Oct 20-Oct 20-Oct

26-Oct 28-Oct 25-Oct 27-Oct 29-Oct 27-Oct 26-Oct 26-Oct 25-Oct 26-Oct 29-Oct 26-Oct 27-Oct 25-Oct 29-Oct 26-Oct 25-Oct 26-Oct 27-Oct 28-Oct 26-Oct 27-Oct 26-Oct 27-Oct 04-Nov 27-Oct 28-Oct 29-Oct 27-Oct 30-Oct 28-Oct 26-Oct 26-Oct

D/B/R 20 25 40(F) 200 175 32.50(F) 200,20(B) 35 5 76 10 11.5 60 50 30

INDICATIONS # Extraordinary General Meeting

Spot AGM/Date 11-Oct 11-Oct 11-Oct 12-Oct 12-Oct 12-Oct 12-Oct 12-Oct 12-Oct 12-Oct 12-Oct 12-Oct

26-Oct 28-Oct 26-Oct 27-Oct 29-Oct 27-Oct 26-Oct 26-Oct 25-Oct 26-Oct 29-Oct 26-Oct 27-Oct 25-Oct 29-Oct 26-Oct 25-Oct 28-Oct 27-Oct 28-Oct 26-Oct 27-Oct 26-Oct 27-Oct 25-Oct 27-Oct 28-Oct 27-Oct 27-Oct 30-Oct 28-Oct 26-Oct 26-Oct

Monday, October 18, 2010

FIXED LINE TELECOMMUNICATION Performance of SR Fixed Line Telecommunication Index Open 1,117.79 Turnover 23,689,324 P/E (x) 6.19 Paid up Cap(mn)

Open

High

Pak DatacomSPOT 78 Pakistan Telecomm Co A 37740 Telecard 3000 WorldCall Tele 8606

5.13 9.19 -

97.34 19.27 2.18 2.60

106.00 19.63 2.63 2.98

Company

High Low 1,169.96 1,112.08 Total cos Defaulter cos P/BV (x) ROE (%) 0.79 12.84 Low

Close 1,148.39 Listed cap 50,077.79 mn Payout (%) 62.56

Close Chg

Volume

91.00 104.00 6.66 19.05 19.29 0.02 2.11 2.47 0.29 2.53 2.82 0.22

23387 6848987 6645813 10856733

Change % Change 30.61 2.74 Market cap 200-Day High 79,235.09 mn Div Yield (%) 200-Day Low 10.11 -

Last 60 days High Low 120.61 20.22 3.08 3.30

91.00 17.32 1.80 2.30

2009 Div BR (%) (%) 70 15 -

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

Atlas Insurance Central Insurance XB Century Insurance EFU General Ins. XB Habib Insurance IGI Insurance Pak Reinsurance Pak Gen Insurance PICIC Ins Ltd Premier Insurance Reliance Insurance XB Silver Star Insurance Universal Insurance

369 4.54 279 5.18 457 6.15 1250 31.77 400 7.56 718 13.71 3000 250 1.37 350 59.50 303 4.84 252 5.05 253 1.77 210 -

Paid up Cap(mn)

Company

Genertech Hub Power Japan Power KESC Kohinoor Energy Kohinoor Power Kot Addu Power XD Sitara Energy LtdSPOT Southern Electric Tri-star Power XD

198 11572 1560 7932 1695 126 8803 191 1367 150

Close 1,173.39 Listed cap 95,369.29 mn Payout (%) 104.13

Change % Change 29.53 2.58 Market cap 200-Day High 96,671.57 mn Div Yield (%) 200-Day Low 8.47 -

Open

High

Low

Close Chg

Volume

Last 60 days High Low

2009 Div BR (%) (%)

6.21 5.79 2.49 6.81 3.85 6.38 -

0.95 33.14 1.40 2.09 23.50 5.10 41.47 21.50 2.13 0.75

0.95 33.79 1.73 2.20 24.49 5.50 41.95 21.85 2.53 0.94

0.60 32.97 1.33 2.01 23.00 4.50 38.35 21.00 2.05 0.72

0.75 -0.20 33.54 0.40 1.60 0.20 2.19 0.10 23.50 0.00 5.00 -0.10 39.35 -2.12 21.60 0.10 2.49 0.36 0.75 0.00

64192 6666374 259009 1115556 40313 68568 4717738 13796 2548096 18401

1.53 37.24 2.28 2.63 26.50 6.70 44.85 23.49 3.21 1.60

33.5 45 64.5 20 3

0.51 32.75 0.70 1.92 23.00 3.90 38.35 20.00 2.05 0.33

31R -

2010 Div BR (%) (%)

Open 825.69 Turnover 170,401 P/E (x) 92.54

Open 1,708.96 Turnover 3,371,130 P/E (x) 12.35 Paid up Cap(mn)

Company Sui North Gas

High Low 1,720.63 1,652.22 Total cos Defaulter cos P/BV (x) ROE (%) 1.41 11.41

Close 1,680.18 Listed cap 12,202.80 mn Payout (%) 66.79

Change % Change -28.78 -1.68 Market cap 200-Day High 37,203.22 mn Div Yield (%) 200-Day Low 5.41 -

Open

High

Low

Close Chg

Volume

Last 60 days High Low

5491 18.82

32.58

33.00

31.40

32.00 -0.58

2095366

33.40

25.00

2009 Div BR (%) (%) -

2010 Div BR (%) (%)

BANKS Performance of SR Banks Index Open 967.73 Turnover 96,255,702 P/E (x) 7.00 Paid up Cap(mn)

Company

Open

Allied Bank Limited 7821 5.78 52.19 Askari Bank 6427 6.19 14.71 Atlas Bank 5001 2.18 Bank Alfalah 13492 11.80 9.11 Bank AL-Habib 7322 6.95 32.11 Bank Of Khyber 5004 3.15 3.14 Bank Of Punjab 5288 8.31 BankIslami Pak 5280 3.14 Faysal Bank 6091 3.14 13.60 Habib Bank Ltd 10019 6.44 97.93 Habib Metropolitan Bank 8732 5.85 19.46 JS Bank Ltd 6128 2.43 KASB Bank Ltd 9509 2.54 MCB Bank Ltd 7602 9.33 195.59 Meezan Bank 6983 7.40 14.93 Mybank Ltd 5304 2.23 National Bank 13455 5.39 64.58 NIB Bank 40437 3.08 Royal Bank Ltd 17180 5.76 Samba Bank 14335 1.87 Silkbank Ltd 26716 12.86 3.00 Soneri Bank 6023 5.75 Stand Chart Bank 38716 9.30 6.30 United Bank Ltd 12242 6.24 52.25

High

High Low Close 1,010.53 964.25 996.01 Total cos Defaulter cos Listed cap - 257,548.02 mn P/BV (x) ROE (%) Payout (%) 0.94 13.45 34.35 Low

Close Chg

54.00 52.00 53.51 1.32 15.35 14.50 14.98 0.27 2.43 2.01 2.17 -0.01 9.39 8.81 8.85 -0.26 33.75 31.71 32.25 0.14 3.60 3.02 3.15 0.01 8.49 8.04 8.10 -0.21 3.35 3.10 3.24 0.10 14.14 13.50 13.62 0.02 102.50 97.20 100.01 2.08 19.80 19.00 19.77 0.31 2.65 2.29 2.38 -0.05 2.90 2.25 2.50 -0.04 200.90 193.70 200.08 4.49 15.95 14.85 15.25 0.32 2.53 2.10 2.23 0.00 65.30 63.77 64.21 -0.37 3.11 2.82 2.83 -0.25 6.30 5.72 6.14 0.38 2.00 1.72 1.96 0.09 3.01 2.78 2.83 -0.17 6.50 5.62 6.25 0.50 6.90 6.25 6.51 0.21 53.65 52.00 53.03 0.78

Last 60 days High Low

Volume 392078 4694844 7287811 19776921 1192587 71457 2906219 543758 460525 1315022 354969 1730973 246620 6710670 994670 284062 6978025 8293998 215924 251482 5066118 329979 87120 4550054

Change % Change 28.28 2.92 Market cap 200-Day High 603,637.80 mn Div Yield (%) 200-Day Low 4.91 -

59.70 17.15 2.84 10.25 34.00 4.75 10.97 3.87 15.58 109.10 23.50 2.92 3.70 214.99 16.45 3.14 73.89 3.50 12.50 2.90 3.30 7.75 8.50 60.20

48.51 13.99 1.52 7.32 29.10 2.50 7.35 2.31 12.75 92.00 18.02 2.00 2.03 180.40 13.80 1.62 60.51 2.42 5.20 1.55 2.15 5.01 6.00 49.90

2009 Div BR (%) (%) 40 8 20 60 10 110 75 25

10B 20B 20B 10B 16B 26B 10B 5B 25B 10B

NON LIFE INSURANCE Performance of SR Non Life Insurance Index Open 625.40 Turnover 8,694,130 P/E (x) 10.76 Paid up Cap(mn)

Company

Adamjee Insurance XD

High Low 680.64 621.69 Total cos Defaulter cos P/BV (x) ROE (%) 0.56 5.20

Close 666.15 Listed cap 11,111.34 mn Payout (%) 79.54

Change % Change 40.75 6.52 Market cap 200-Day High 42,088.82 mn Div Yield (%) 200-Day Low 7.39 -

Open

High

Low

Close Chg

Volume

Last 60 days High Low

1237 13.02

67.43

72.79

65.55

71.63 4.20

3772180

89.90

63.05

2009 Div BR (%) (%) 30

10B

2010 Div BR (%) (%) 10

24766 5023 18812 77806 23552 191669 3880978 19831 73569 177436 5462 14575 12055

31.00 64.90 11.99 54.50 13.89 81.50 19.26 8.20 4.16 10.60 7.38 10.00 4.00

27.10 47.37 9.42 34.76 10.04 66.02 12.50 5.06 1.66 8.00 6.02 6.00 1.77

40 20 40 35 35 30 5 20 -

10B 25B 8.7B 25B 15B 20B -

10 10 -

UPTO 5000 VOLUME

10B 20B -

Paid up Cap(mn)

High Low 857.44 800.26 Total cos Defaulter cos P/BV (x) ROE (%) 3.56 3.85

Close 851.23 Listed cap 2,290.72 mn Payout (%) 355.53

Symbols SERT DADX FECTC KCL MIRKS CPL ICL CLOV QUET GWLC ATLH SANSM MSOT FIMM UNIC PAKT COLG BGL PPP AGL MEHT PNGRS RUPL GAMON MTIL NJICL CRTM UNIM MODAM GFIL SNAI BATA JVDC LEUL PCAL MUKT MZSM SFWF NONS SSOM ACCM MACFL SING DWSM ISIL STCL SMCPL NPSM WAZIR QUICE SKRS AZTM GTYR SAPT ATEL APOT TRSM BFMOD ARM BUXL MERIT ISTM KSBP SHCM AATM AGIC BROT BTL HACC JATM SHNI FNBM NESTLE ALQT BWHL SHEZ JKSM AASM ADAMS NAKI HINO SPLC PAKL SCL GATI SGMLPS SAPL PGCL BIFO HUSI FTHM DFSM CEFP SKFL PUNO SUHJ SFAT CSIL SZTM WYETH LPGL HUSS COTT GUTM FNEL KOHS LMSM EXIDE MFFL DIIL STML SIEM TSMF LIBM TRPOL BWCL PSEL FRCL FIBLM RMPL FASM RCML ESBL FZTM FCONM AABS BAFS AWTX PHDL IDEN ULEVER MSCL UPFL NMBL

Change % Change 25.55 3.09 Market cap 200-Day High 9,672.23 mn Div Yield (%) 200-Day Low 3.84 -

Open

High

Low

Close Chg

Volume

Last 60 days High Low

60.50

69.97

61.00

69.97 9.47

57340

84.99

51.25

5513.33B

New Jub Life Insurance

627 54.04

42.20

2009 Div BR (%) (%)

43.75

40.65

43.23 1.03

33932

46.00

34.50

2010 Div BR (%) (%)

FINANCIAL SERVICES Performance of SR Financial Services Index Open 349.95 Turnover 37,737,740 P/E (x) 0.44 Paid up Cap(mn)

AMZ Ventures Arif Habib Limited XB Arif Habib Securities Dawood Cap Mangt. XB Dawood Equities Grays Leasing IGI Investment Bank Invest and Fin SecSPOT Invest Bank Ist Cap Securities Ist Dawood Bank Jah Siddiq Co JOV and CO JS Global Cap XD JS Investment Orix Leasing Pervez Ahmed Sec Sec Inv Bank Stand Chart Leasing Trust Inv Bank

High Low 373.06 345.97 Total cos Defaulter cos P/BV (x) ROE (%) 0.16 37.22

Open

High

Low

225 450 6.47 3750 2.19 150 250 215 2121 600 2.84 2849 2878 1.85 626 0.29 7633 508 500 1000 12.89 821 4.13 775 514 978 5.50 586 -

0.58 26.30 23.15 1.44 1.90 1.61 1.75 7.39 0.67 4.32 1.82 9.16 2.36 26.38 5.65 5.25 1.56 2.50 2.30 1.87

0.74 26.97 23.50 1.99 2.16 2.72 2.06 8.88 0.85 4.80 1.98 9.81 2.52 26.62 6.15 5.69 1.82 2.60 2.44 2.87

0.46 24.95 22.10 1.05 1.80 1.00 1.77 7.47 0.57 3.60 1.71 8.85 2.20 24.25 5.50 5.20 1.46 2.00 2.25 1.24

Close Chg 0.52 25.96 22.22 1.20 1.99 2.19 2.01 8.14 0.69 4.49 1.72 9.30 2.27 25.31 5.80 5.25 1.69 2.60 2.42 1.26

-0.06 -0.34 -0.93 -0.24 0.09 0.58 0.26 0.75 0.02 0.17 -0.10 0.14 -0.09 -1.07 0.15 0.00 0.13 0.10 0.12 -0.61

Close 356.16 Listed cap 30,336.44 mn Payout (%) 4.60

Volume 418900 231196 11010654 20420 6402 5839 105555 44129 63423 316899 198401 19867059 1391076 192470 855805 116528 1016822 10000 13567 6191

Change % Change 6.21 1.78 Market cap 200-Day High 25,504.06 mn Div Yield (%) 200-Day Low 10.56 -

Last 60 days High Low

2009 Div BR (%) (%)

1.10 47.70 34.99 2.69 3.36 4.00 2.43 9.00 1.16 5.40 2.84 15.47 5.95 42.00 8.52 5.95 2.73 3.80 3.49 4.25

15 25B 30 - 11.5 - 10B -243.778B 10 150 -231.08R -

0.42 24.62 20.90 0.50 1.55 0.32 1.17 6.90 0.44 2.54 1.17 8.80 1.96 24.25 5.10 3.66 1.35 1.65 1.50 1.24

2010 Div BR (%) (%) 20B 10B -

EQUITY INVESTMENT INSTRUMENTS Performance of SR Equity Investment Instruments Index

2010 Div BR (%) (%) 20 - 66R 55 -63.46R 10 -

1.60 2.25 0.62 3.89 0.68 3.66 0.36 -1.09 0.04 0.18 0.88 0.56 -0.10

850 38.03

Company

GAS WATER AND MULTIUTILITIES

30.75 50.00 10.94 40.03 10.89 77.60 14.47 5.79 2.38 8.95 7.38 7.10 3.00

EFU Life Assurance XB

Company

50 - 7.8R 15 50 20 -

Performance of SR Gas Water and Multiutilities Index

28.81 48.95 9.45 35.60 10.15 72.01 13.61 5.65 2.00 8.00 6.25 6.25 2.55

Performance of SR Life Insurance Index

ELECTRICITY High Low 1,180.27 1,136.49 Total cos Defaulter cos P/BV (x) ROE (%) 1.15 9.35

30.99 50.80 11.99 40.03 11.50 81.50 15.25 6.89 2.65 8.98 7.38 8.17 3.10

LIFE INSURANCE

Performance of SR Electricity Index Open 1,143.86 Turnover 32,674,446 P/E (x) 12.29

29.15 47.75 10.32 36.14 10.21 73.94 14.11 6.88 2.34 8.77 6.50 6.54 3.10

Open 1,025.10 Turnover 20,448,608 P/E (x) 6.91 Company

Paid up Cap(mn)

High Low 1,056.43 1,006.55 Total cos Defaulter cos P/BV (x) ROE (%) 0.28 4.09

Open

High

Low

1st Fid Leasing 264 AL-Meezan Mutual F. XD 1375 2.41 AL-Noor ModarabaSPOT 210 4.83 Atlas Fund of Funds 525 2.08 B R R Guardian Mod. 780 Crescent St Modaraba 200 2.60 Elite Cap Modaraba 113 4.05 Equity Modaraba 524 First Capital Mutual F. 300 4.34 First Dawood Mutual F. 581 Golden ArrowSPOT 760 3.97 H B L Modaraba XD 397 4.82 Habib Modaraba 1008 4.44 JS Growth Fund 3180 36.75 JS Value Fund 1186 KASB ModarabaSPOT 283 3.08 Meezan Bal. Fund XD 1200 2.66 NAMCO Bal. Fund 1000 2.55 Pak Modaraba 125 1.82 Pak Prem Fund 1698 3.82 Pak Strat Fund 3000 5.51 Paramount Mod. SPOT 59 7.99 PICIC Energy Fund 1000 2.93 PICIC Growth Fund 2835 2.31 PICIC Inv Fund XD 2841 1.91 Prud Modaraba 1st XD 872 2.47 Punjab Modaraba 340 Stand Chart Mod. XD 454 5.03 Tri-Star 1st Modaraba 212 7.11 U D L Modaraba 264 3.48

1.05 6.11 2.70 3.59 1.10 0.70 2.89 1.10 3.28 1.63 3.58 6.49 6.00 3.00 3.04 1.75 5.60 2.99 0.90 7.80 6.90 8.80 5.09 8.52 3.61 1.00 1.20 8.75 1.96 6.48

1.40 6.50 3.00 3.89 1.45 0.84 2.90 1.20 4.04 1.70 3.74 6.74 6.00 3.20 3.20 1.95 5.60 3.69 1.40 8.20 7.24 9.45 5.50 8.69 3.86 1.00 1.49 8.98 3.10 6.99

1.05 5.85 2.50 2.70 1.02 0.50 2.50 1.03 2.80 1.40 3.58 5.45 5.80 2.81 2.61 1.50 5.30 2.40 0.30 7.70 6.91 8.55 4.90 8.01 3.50 0.89 0.97 7.85 1.26 6.50

Close Chg 1.35 6.25 2.56 2.70 1.19 0.65 2.63 1.19 4.04 1.70 3.65 5.45 5.90 2.94 2.80 1.85 5.50 2.55 1.00 8.02 7.05 8.95 5.50 8.42 3.79 0.94 1.29 8.85 2.70 6.68

0.30 0.14 -0.14 -0.89 0.09 -0.05 -0.26 0.09 0.76 0.07 0.07 -1.04 -0.10 -0.06 -0.24 0.10 -0.10 -0.44 0.10 0.22 0.15 0.15 0.41 -0.10 0.18 -0.06 0.09 0.10 0.74 0.20

Close 1,033.70 Listed cap 29,771.58 mn Payout (%) 104.19

Change % Change 8.60 0.84 Market cap 200-Day High 17,428.14 mn Div Yield (%) 200-Day Low 26.53 -

Volume

Last 60 days High Low

2009 Div BR (%) (%)

11706 77887 29302 19998 76604 454869 288983 447097 329395 140883 243897 101124 314898 181793 642549 112175 19200 7256399 85005 1063131 603955 20667 610089 2914703 1284027 58439 31438 57343 12541 113103

2.24 7.25 3.44 4.20 2.43 0.90 3.44 1.50 4.04 2.09 3.88 6.80 7.49 4.39 3.98 2.00 7.49 3.70 1.40 9.86 8.10 9.45 6.49 10.55 5.00 1.20 2.00 10.99 7.12 6.99

4.5 5 20 10 5 15 16.5 10

1.01 5.85 2.50 2.53 0.90 0.16 1.65 0.76 0.99 1.36 2.32 4.80 5.56 2.70 2.31 0.52 5.30 2.25 0.25 7.00 6.01 6.55 4.00 7.60 3.50 0.70 0.57 7.75 0.50 5.00

2010 Div BR (%) (%)

- 18.5 5 2.2 0 1.2 5 17 11 21 5 10 2.8 - 15.5 15 3 - 18.6 - 11.53 18 5 20 10 3 17 - 12.5

Open 0.14 24.24 5.00 4.84 57.50 161.85 22.50 44.13 30.23 3.32 97.69 14.00 20.30 57.65 4.65 113.50 716.71 1.26 40.00 23.97 66.56 5.48 35.02 1.51 0.58 55.00 20.50 0.13 0.98 3.26 29.32 446.61 59.36 1.89 53.50 0.53 4.95 8.00 11.10 3.05 0.30 2.42 18.50 1.50 76.45 8.90 6.51 23.00 5.20 2.85 3.00 1.00 22.52 103.36 17.00 3.00 2.54 4.13 15.95 10.50 16.90 4.25 78.05 15.00 1.00 11.06 0.50 50.00 6.00 3.99 13.38 7.05 1961.62 3.75 30.43 98.00 6.50 32.79 11.23 16.00 119.83 0.63 2.50 53.60 40.45 3.50 116.20 18.41 39.82 10.22 115.25 3.10 3.50 1.25 34.00 12.00 3.00 6.25 7.48 910.00 9.50 13.50 1.98 22.54 10.32 4.45 2.05 139.74 62.00 16.70 16.76 1150.00 2.12 54.60 0.34 25.99 148.98 3.90 2.30 1309.25 31.13 24.00 2.58 353.16 1.48 95.00 49.99 105.00 56.05 11.00 3990.00 9.40 1030.00 0.90

High 0.75 27.25 6.50 8.75 61.84 164.85 22.57 49.45 31.65 3.85 99.99 14.25 20.00 54.90 5.06 120.00 769.99 1.80 39.95 23.90 68.80 6.00 35.75 2.27 0.70 55.99 23.50 0.50 1.12 4.94 30.99 479.50 61.95 1.99 56.50 0.79 5.35 8.49 12.40 3.05 0.85 3.50 19.15 1.90 74.00 8.98 6.95 24.66 6.20 3.40 3.35 1.00 22.50 104.90 17.95 4.00 3.25 4.35 16.00 11.87 16.20 4.98 80.00 14.00 1.00 11.95 0.89 51.25 6.60 3.99 13.38 7.40 2057.99 4.75 32.00 97.70 7.15 35.00 12.50 17.00 126.00 0.80 5.70 60.00 41.90 4.50 120.00 19.40 40.50 10.90 115.25 3.98 3.50 1.25 37.48 12.00 3.50 7.00 7.30 905.00 14.46 13.40 1.85 24.84 10.50 4.10 3.00 142.90 68.18 16.20 17.60 1189.99 2.20 55.00 0.74 25.99 155.00 4.00 2.50 1390.00 34.95 29.16 2.74 359.95 1.97 97.00 52.00 100.00 53.25 12.00 4220.00 10.09 1030.00 1.14

Low

0.74 24.24 4.25 5.00 55.24 161.00 21.39 42.61 27.15 2.75 94.65 13.50 18.51 48.65 4.55 112.00 695.95 1.40 38.61 22.10 60.25 5.44 34.85 1.40 0.14 52.75 20.52 0.13 0.77 3.65 28.31 436.00 59.00 1.35 50.00 0.35 4.70 8.00 11.16 3.00 0.24 1.60 17.30 1.25 70.08 8.16 6.10 21.85 4.75 2.85 3.23 0.21 22.11 90.00 17.00 3.00 2.10 3.80 15.95 10.00 15.26 4.50 74.00 11.00 1.00 10.91 0.25 47.50 6.00 3.00 12.35 7.05 1880.00 3.26 29.00 91.50 6.00 31.85 11.26 16.00 113.06 0.51 2.51 53.60 38.03 3.50 119.90 18.40 36.20 9.99 113.00 3.00 3.50 1.10 34.00 11.00 2.76 3.50 6.26 830.00 9.00 12.40 1.50 22.00 9.25 3.90 1.10 139.74 61.81 13.20 16.51 1136.00 1.27 55.00 0.40 24.70 143.12 2.20 1.30 1252.00 31.10 25.20 2.48 320.00 0.90 92.15 49.45 95.00 45.67 12.00 3900.01 9.10 1020.00 0.90

0.74 24.77 5.78 8.53 59.17 161.01 22.57 49.45 27.15 3.49 96.02 13.90 19.50 48.65 5.05 115.26 740.00 1.80 39.10 22.26 64.98 5.80 34.90 2.14 0.60 53.77 23.50 0.15 0.91 4.40 29.75 454.05 60.00 1.89 54.50 0.46 4.94 8.49 12.22 3.00 0.85 2.51 17.80 1.42 74.00 8.95 6.20 22.00 5.21 3.00 3.23 0.50 22.50 97.50 17.00 3.99 2.75 4.30 16.00 10.00 16.00 4.94 77.70 11.00 1.00 11.94 0.89 51.25 6.60 3.00 12.35 7.05 1941.00 3.26 30.40 95.00 6.70 35.00 12.50 17.00 119.99 0.54 4.95 57.36 41.80 3.80 120.00 18.65 38.00 10.79 113.00 3.97 3.50 1.10 37.48 11.10 3.17 4.99 6.49 830.06 14.45 13.40 1.50 24.40 10.25 3.90 2.50 142.90 61.81 14.69 17.50 1189.99 1.99 55.00 0.74 24.70 154.58 3.90 1.99 1370.00 34.95 29.16 2.74 320.00 1.87 96.00 51.90 95.00 47.95 12.00 4007.50 9.10 1030.00 1.14

Change

Vol

0.60 0.53 0.78 3.69 1.67 -0.84 0.07 5.32 -3.08 0.17 -1.67 -0.10 -0.80 -9.00 0.40 1.76 23.29 0.54 -0.90 -1.71 -1.58 0.32 -0.12 0.63 0.02 -1.23 3.00 0.02 -0.07 1.14 0.43 7.44 0.64 0.00 1.00 -0.07 -0.01 0.49 1.12 -0.05 0.55 0.09 -0.70 -0.08 -2.45 0.05 -0.31 -1.00 0.01 0.15 0.23 -0.50 -0.02 -5.86 0.00 0.99 0.21 0.17 0.05 -0.50 -0.90 0.69 -0.35 -4.00 0.00 0.88 0.39 1.25 0.60 -0.99 -1.03 0.00 -20.62 -0.49 -0.03 -3.00 0.20 2.21 1.27 1.00 0.16 -0.09 2.45 3.76 1.35 0.30 3.80 0.24 -1.82 0.57 -2.25 0.87 0.00 -0.15 3.48 -0.90 0.17 -1.26 -0.99 -79.94 4.95 -0.10 -0.48 1.86 -0.07 -0.55 0.45 3.16 -0.19 -2.01 0.74 39.99 -0.13 0.40 0.40 -1.29 5.60 0.00 -0.31 60.75 3.82 5.16 0.16 -33.16 0.39 1.00 1.91 -10.00 -8.10 1.00 17.50 -0.30 0.00 0.24

5000 4948 4906 4835 4788 4402 4200 4094 4032 3988 3895 3754 3753 3554 3531 3444 3426 3233 3228 3213 3188 3160 3039 3002 2876 2783 2598 2500 2351 2310 2283 2259 2214 2211 2165 2119 2100 2099 2066 2000 2000 1993 1838 1824 1721 1662 1641 1584 1507 1500 1500 1500 1493 1458 1435 1402 1376 1340 1284 1229 1216 1143 1124 1112 1092 1011 1004 1002 1000 1000 1000 1000 851 806 784 775 744 731 700 700 695 692 644 617 605 533 525 516 506 506 505 501 500 500 500 500 381 372 337 329 324 300 300 276 265 234 219 218 202 193 175 145 112 101 101 100 99 86 78 73 59 51 51 48 42 33 32 16 16 16 15 14 12 11

BOARD MEETINGS

Bank Alfalah Ltd

KSE 100 INDEX

Dera Ghazi Khan Cement Co Ltd

Nishat Mills Ltd

Company

Date

Time

Allied Bank Limited IGI Investment Bank Ltd Pak Oman Advantage Fund Pak Oman Advantage Islamic Fund Pak Oman Advantage Islamic Income Fund Pak Oman Advantage Stock Fund Pakistan Tobacco Co Ltd Sanofi-Aventis Pakistan Limited Askari General Insurance Co Ltd BRR Guardian Modaraba Biafo Industries Limited

18-Oct 18-Oct 18-Oct 18-Oct 18-Oct 18-Oct 18-Oct 18-Oct 19-Oct 19-Oct 19-Oct

10:30 3:00 12:30 12:30 12:30 12:30 1:00 11:00 11:00 11:00 11:30

TECHNICAL LEVELS Company

Technical Outlook Technical Analysis RSI (14-day)

Brokerage House

Leverage Position

Fair Value

*Arif Habib Ltd

AKD Securities Ltd

10.25

TFD Research

14.01

73.39

Support 1

10,398.55

MA (5-day)

10,369.14

Support 2

10,365.25

MA (10-day)

10,239.71

Resistance 1

10,469.30

MA (100-day)

9,904.44

Resistance 2

10,506.75

Technical Analysis

MA (200-day)

9,965.78

Pivot

10,436.00

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

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

Rs Recommendations Buy

*Arif Habib Ltd

Accumulate

AKD Securities Ltd

Positive

Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)

674.58 5,970.02 N/A N/A N/A N/A

resistance level at 10,469.30 and 2nd resistance level at 10,506.75, while Median Index will continue to find its 1st support level at 10,398.55 and 2nd sup- * Target price for Dec-10 & **Net Open Interest in future market port level at 10,365.25.

BAFL closed down -0.26 at 8.85. Volume was 37 per cent below average and Bollinger Bands were 64 per cent wider than normal. BAFL is currently 16.4 per cent below its 200-day moving average and is to the average volatility over the last 10 trading sessions. Volume indicators displaying an upward trend. Volatility is extremely high when compared to reflect moderate flows of volume into INDEX (mildly bullish). Trend forecasting the average volatility over the last 10 trading sessions. Volume indicators oscillators are currently bullish on INDEX. Momentum oscillator is currently reflect very strong flows of volume into BAFL (bullish). Trend forecasting indicating that INDEX is currently in an overbought condition. oscillators are currently bullish on BAFL.

KSE 100 INDEX is currently 4.7 per cent above its 200-day moving average and is displaying an upward trend. Volatility is extremely low when compared

Brokerage House

Fair Value

*Arif Habib Ltd

AKD Securities Ltd

32.06

National Bank of Pakistan

TFD Research

29.1

Rs Recommendations

Brokerage House

Buy

*Arif Habib Ltd

Accumulate

AKD Securities Ltd

Neutral

TFD Research

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

62.98 28.69 27.81 29.39 29.48 29.38

Leverage Position Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)

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

326.94 9,621.80 N/A N/A N/A 3.67

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

Buy

43.29

Buy

TFD Research

36.85

Positive

Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)

175.80 8,941.18 N/A N/A N/A 33.02

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

Leverage Position

58.34 24.83 25.03 27.30 25.59 25.42

Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)

182.55 4,691.53 N/A N/A N/A 31.85

* Target price for Dec-10 & **Net Open Interest in future market DGKC closed up 0.71 at 25.70. Volume was 42 per cent below average and Bollinger Bands were 31 per cent narrower than normal. DGKC is currently 5.8 per cent below its 200-day moving average and is displaying an upward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into DGKC (mildly bullish). Trend forecasting oscillators are currently bullish on DGKC.

Brokerage House

TFD Research

92.3

Positive

MCB Bank Ltd

Brokerage House

Rs Recommendations

24.04

Buy

*Arif Habib Ltd

Positive

AKD Securities Ltd

189.75

TFD Research

218.18

30.5

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

Fair Value

56.86 19.22 18.74 19.63 19.40 19.34

Leverage Position Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)

194

Rs Recommendations Hold Neutral Neutral

Technical Outlook

Technical Outlook 318.37 20,442.34 N/A N/A N/A 57.38

Positive

Technical Outlook

Leverage Position

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

AKD Securities Ltd

Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)

AKD Securities Ltd

NML closed up 1.62 at 50.86. Volume was 137 per cent above average and Bollinger Bands were 32 per cent narrower than normal. NML is currently 3.0 per cent below its 200-day moving average and is displaying an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into NML (mildly bullish). Trend forecasting oscillators are currently bullish on NML.

Buy

50.18 63.96 65.33 72.32 64.46 64.54

*Arif Habib Ltd

Buy

68.45 48.82 46.47 52.42 49.90 50.02

Neutral

Leverage Position

Rs Recommendations

Buy

Pakistan Telecommunication Co Ltd

Rs Recommendations

Fair Value

74.2

61.96

Technical Analysis

Brokerage House

59.97

Technical Analysis

Technical Outlook

Technical Outlook Technical Analysis

Fair Value

Rs Recommendations

Technical Outlook

Leverage Position

57.68 8.90 8.85 10.58 9.13 9.10

Fair Value

TFD Research

Technical Outlook

cent above average and Bollinger Bands were 7 per cent narrower than MA (200-day) normal. As far as resistance level is concern, the market will see major 1st Mean

Fauji Fertiliser Bin Qasim Ltd

Brokerage House

584.63 11,277.61 N/A N/A N/A 7.77

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

64.44 194.60 193.57 204.15 196.91 197.30

Leverage Position Free Float Shares (mn) Free Float Rs (mn) CFS Shares (mn) CFS Rs (mn) CFS Rate ** NOI Rs (mn)

342.10 68,446.72 N/A N/A N/A 210.10

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

FFBL closed up 0.86 at 29.43. Volume was 35 per cent above average and Bollinger Bands were 25 per cent wider than normal. FFBL is currently 1.9 per cent above its 200-day moving average and is displaying an upward trend. Volatility is low as compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into FFBL (mildly bullish). Trend forecasting oscillators are currently bullish on FFBL.

NBP closed down -0.37 at 64.21. Volume was 9 per cent below average and Bollinger Bands were 53 per cent narrower than normal. NBP is currently 3.0 per cent below its 200-day moving average and is 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 NBP at a relatively equal pace. Trend forecasting oscillators are currently bullish on NBP.

PTC closed up 0.02 at 19.29. Volume was 73 per cent below average (consolidating) and Bollinger Bands were 48 per cent narrower than normal. PTC is currently 1.7 per cent below its 200-day moving average and is 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 PTC at a relatively equal pace. Trend forecasting oscillators are currently bullish on PTC.

MCB closed up 4.49 at 200.08. Volume was 165 per cent above average (trending) and Bollinger Bands were 21 per cent narrower than normal. MCB is currently 2.0 per cent below its 200-day moving average and is displaying an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 trading sessions. Volume indicators reflect moderate flows of volume into MCB (mildly bullish). Trend forecasting oscillators are currently bullish on MCB.

Al-Abbas Cement Allied Bank Limited Attock Cement Arif Habib Limited Arif Habib Securities Adamjee Insurance Askari Bank Azgard Nine Attock Petroleum Attock Refinery Bank Alfalah BankIslami Pak Bank Of Punjab Dewan Cement DGK Cement Dewan Salman Dost Steels Ltd EFU General Insurance EFU Life Assurance Engro Chemical Faysal Bank Fauji Cement Fauji Fert Bin Fauji Fertilizer Habib Bank Ltd Hub Power ICI Pakistan Indus Motors JOV and CO Japan Power JS Bank Ltd Kot Addu Power KESC Lucky Cement MCB Bank Ltd Maple Leaf Cement National Bank Nishat (Chunian) Netsol Technologies NIB Bank Nimir Ind.Chemical Nishat Mills Oil & Gas Dev. XD PACE (Pakistan) Ltd. Pervez Ahmed Sec PIAC(A) Pioneer Cement Pak Oilfields Pak Petroleum Pak Suzuki PSO XD PTCLA Shell Pakistan Sui North Gas Sitara Peroxide Sui South Gas Telecard TRG Pakistan United Bank Ltd WorldCall Tele Jah Siddiq Co

RSI 1st 2nd (14-day) Support 42.97 2.90 2.70 60.31 53.30 53.05 39.60 62.45 61.50 36.96 25.40 24.80 41.01 21.85 21.50 60.90 70.90 70.15 55.17 14.85 14.75 48.82 9.95 9.75 70.62 362.40 360.25 67.04 89.40 87.95 57.68 8.70 8.55 53.49 3.20 3.15 43.83 8.00 7.95 50.06 1.35 1.20 58.34 25.35 24.95 52.28 1.40 1.35 58.47 2.10 2.00 60.10 39.35 38.70 73.45 68.80 67.65 51.89 175.75 174.35 49.27 13.40 13.20 55.08 4.85 4.65 62.98 28.95 28.45 61.91 107.70 107.20 59.40 99.60 99.20 47.21 33.35 33.20 53.61 120.50 119.50 54.51 227.60 225.95 32.21 2.20 2.10 54.60 1.50 1.40 48.83 2.30 2.25 29.58 38.65 37.90 60.37 2.10 2.00 63.60 72.80 72.35 64.44 196.90 193.70 44.53 2.80 2.75 50.18 63.80 63.35 69.63 18.50 17.90 48.07 18.15 17.80 52.18 2.75 2.70 56.02 1.35 1.25 68.45 50.20 49.55 69.46 149.95 148.70 58.52 2.65 2.35 54.57 1.65 1.60 51.88 2.15 2.10 53.46 7.90 7.75 71.59 246.85 244.80 52.92 185.00 183.60 50.42 73.40 71.80 56.41 271.45 269.80 56.86 19.10 18.95 44.88 193.35 192.50 64.99 31.55 31.15 66.20 8.95 8.50 68.35 28.80 28.30 63.92 2.40 2.35 51.70 3.90 3.85 52.13 52.80 52.50 65.63 2.75 2.65 44.21 9.15 9.00

1st

2nd

Resistance 3.40 3.70 53.90 54.25 64.95 66.50 26.75 27.55 22.80 23.40 72.60 73.55 15.20 15.45 10.55 10.95 368.30 372.05 92.40 93.95 9.10 9.40 3.30 3.35 8.25 8.35 1.85 2.15 26.00 26.30 1.55 1.60 2.40 2.60 41.35 42.70 72.30 74.65 179.40 181.65 14.00 14.35 5.10 5.15 30.00 30.55 108.70 109.20 100.70 101.40 33.70 33.90 123.00 124.45 231.55 233.85 2.40 2.55 1.70 1.85 2.40 2.45 39.80 40.20 2.25 2.30 73.90 74.50 202.10 204.10 2.90 2.95 64.95 65.65 19.50 19.85 19.00 19.50 2.95 3.05 1.60 1.70 51.30 51.80 151.95 152.70 3.25 3.50 1.80 1.85 2.25 2.30 8.25 8.45 250.60 252.30 187.30 188.20 76.30 77.60 275.80 278.50 19.45 19.65 195.30 196.40 32.45 32.95 9.75 10.10 29.70 30.15 2.60 2.70 4.20 4.35 53.35 53.70 2.95 3.05 9.55 9.80

Pivot 3.20 53.65 64.00 26.20 22.45 71.85 15.10 10.35 366.15 90.95 8.95 3.25 8.15 1.70 25.65 1.45 2.30 40.70 71.15 178.00 13.75 4.90 29.50 108.20 100.30 33.55 122.00 229.90 2.35 1.60 2.35 39.05 2.15 73.40 198.90 2.85 64.50 18.90 18.65 2.90 1.45 50.65 150.70 2.90 1.70 2.20 8.10 248.55 185.90 74.70 274.15 19.30 194.45 32.05 9.30 29.25 2.50 4.10 53.10 2.85 9.40

UK banks banned from some credit insurance sales 8

Monday, October 18, 2010

Credit terms ease in last 3 months: Fed survey

TOKYO: A man walks out the Dai-ichi Mutual Life Insurance headquarters building.-Reuters

More US banks kiss closure; toll totals 132 WASHINGTON: Three more US banks were closed by regulators, bringing to 132 the total number of banks to fail so far this year. The Federal Deposit Insurance Corp said Premier Bank of Jefferson City, Missouri, Security Savings Bank, FSB of Olathe, Kansas, and WestBridge Bank and Trust Co of Chesterfield, Missouri, were closed. Premier Bank had about $1.18 billion in assets and $1.03 billion in deposits. The failure is projected to cost the FDIC deposit insurance fund $406.9 million. Providence Bank of Columbia, Missouri, will assume all of the deposits of Premier Bank, except certain

brokered deposits, and also agreed to purchase about $657.9 million of the failed Bank's assets, the FDIC said. Security Savings Bank, FSB had about $508.4 million in assets and $397 million in deposits. The failure is expected to cost the FDIC deposit insurance fund $82.2 million. Simmons First National Bank of Arkansas will assume Security Savings Bank's deposits and assets. WestBridge Bank and Trust Company had about $91.5 million in assets and $72.5 million in deposits. The failure will cost the FDIC's fund $18.7 million. Midland States Bank of Effingham, Illinois will assume the failed Bank's deposits and

assets, the FDIC said. FDIC Chairman Sheila Bair said recently that the agency still anticipates that the number of failures this year will exceed total of 140 in 2009, but that total assets of this year's failures will probably be lower. While failures are still occurring at a rapid pace, it is now mostly smaller institutions that have been collapsing as they deal with problems in the commercial real estate market. Community banks tend to have higher concentrations of these loans than larger banks. Washington Mutual, which had $307 billion in assets when it was seized in September 2008, remains the largest Bank to fail during the financial crisis.-Reuters

AIA shrugs off AIG shareholding overhang HONG KONG: American International Group Inc's remaining shareholding in AIA Group Ltd after its listing is not of concern to investors, AIA CEO Mark Tucker said Sunday, as the mega offer enters its home stretch. AIA, which aims to raise up to $20.5 billion through an Hong Kong initial public offering (IPO), said it plans to sell up to 8.08 billion shares in an indicative range of HK$18.3819.68 each, setting it on course to be the third-biggest IPO ever. Tucker, who has about 17 years experience of running life

insurance business in Asia, was named AIA CEO in a surprise move in July replacing Mark Wilson. Tucker is credited with building rival Prudential plc's Asia business. "There has been an incredibly enthusiastic response to this," Tucker told Hong Kong media via video conference about the AIA IPO. Shortage of time was the only issue he was grappling with, Tucker quipped. "If we could add another add another 20 hours to a day, that would be perfect," Tucker said, flanked by -- Christopher Wei, group chief marketing officer,

Jon Nielsen, regional chief financial office, and John Chu, group chief investment officer. Some analysts have said that bailed-out insurer AIG's stake in AIA could be an overhang on AIA. Even if AIG exercises all its options under the offer, it would be left with a 33 per cent stake in AIA which it cannot sell for one year. "This is not a concern. AIG are clear in terms of their divestment..., this is not an issue in any of the conversation that we have had," Tucker, 52, said from San Francisco.Reuters

WASHINGTON: US dealers eased credit terms for hedge funds, insurance companies and other firms in the three months to September, a Federal Reserve survey showed. This was the second installment of the Fed's Senior Credit officer Opinion Survey, which polls dealers at 20 financial institutions. Its first was released in July. The latest survey showed borrowers drove a hard bargain on credit terms. The Fed said a "modest net fraction" of dealers expected credit terms for hedge funds, insurance companies and others to ease further over the coming three months. The Fed said only a few respondents said they increased the amount of resources and attention devoted to managing concentrated credit exposures, a notable contrast to the June survey which showed more than half of respondents had done so. The September survey included a special question on dealers' assessment of how willing their clients were to take on risk. Overall, the responses were mixed. However, the Fed said a smaller subset of only the largest firms found a majority reported a decrease in client risk appetite since the start of the year and over the past three months. The Fed also conducts a senior loan officer survey, which tracks lending to more traditional borrowers such as businesses and consumers.-Reuters

‘Resolution’ of UK to buy Bupa health arm LONDON: British insurance buyout vehicle Resolution Plc will buy Bupa Health Assurance for around 102 million pounds ($163 million), as Resolution continues to snap up assets in the sector and broaden its product range. The acquisition of Bupa Health Assurance follows hot on the heels of Resolution's takeovers of AXA's UK life insurance arm earlier this year and last year's purchase of Friends Provident. Bupa Health Assurance, part of one of Britain's bestknown private healthcare companies, had 309 million pounds of assets at the end of 2009 and has ties with more than 20,000 independent financial advisers. Resolution said that the acquisition would boost its earnings and added it could extract cost savings from the deal. "This acquisition will strengthen our group risk business product range and improve the profitability of our Individual Protection business," said Trevor Matthews, the chief executive of Resolution's Friends Provident insurance arm.Reuters

Life cover thru BISP launches on Nov 1 ISLAMABAD: Chairperson Benazir Income Support Programme (BISP) Farzan Raja has said that Life Insurance Initiative under BISP will be launched on November 1. As per details it will provide compensation worth Rs100,000 to the registered families who had lost their bread-earner in any incident. Farzana Raja gave these details while addressing the 3rd Annual Conference on the International Rural Women Day arranged by Potohar Organisation for Development and Advocacy (PODA) at Lok Virsa. Farzana said that another initiative of Waseela-e-Sehat (health insurance) worth Rs25,000 will be launched in the second phase in December. Pakistan People's Party (PPP) manifesto largely speaks of the social and economic empowerment of the women and initiated BISP which benefitting three million families. She said that the programme will reach 5 to 7 million families in the coming years and 30 per cent to 40 per cent people living below poverty line will be empowered economically after 10 years. BISP was initiated with the aim to make female segment of the society economically stable. The Rural Women Day is being celebrated to renew the commitments to

acknowledge the role of rural women, giving them the right to raise voices against discrimination and injustices. She assured the women participants who came from different rural areas of the country that their voices would be raised in the parliament and legislation will be made to protect their rights. BISP cash grant is provided through female head of the family and for the purpose, it was made obligatory to get registration from Nadra. More than nine million women have got their CNICs in last one and a half years. Farzana said that the process of Poverty Survey has been initiated to enroll more and more women as BISP beneficiaries and urged the women to cooperate with BISP teams to get vulnerable families registered under the programme. To a question regarding `Haris' issues in Punjab province, Farzana said that the issue will be discussed with the Punjab government for its earliest resolution. More than one million people of Punjab are benefiting from BISP and the figure will be doubled soon, she said. Executive Director, PODA Sameena Nazir, presented a Charter of Rights for Women in Disaster Situation to Farzana Raja.-APP

Fraud earns NICL head “long leave” ISLAMABAD: Chairman National Insurance Company Limited (NICL) Ayaz Khan Niazi has been sent on a long leave after being charged for fraud by the FIA on the directives of Supreme Court of Pakistan. The action was taken by Prime Minister Yousuf Raza Gilani. Supreme Court last week directed the Commerce Secretary to lodge a criminal

complaint against the National Insurance Company Limited (NICL) chairman for allegedly procuring land on highly inflated price, thus causing a huge financial loss to the national exchequer. The court directed the FIA DG to register a criminal case and ensure whosoever had misappropriated the public money is brought to book.-NNI

Insurers’ stocks see a positive last-week Staff Reporter KARACHI: Positive activities continued in the insurance stocks last week at the Karachi Stock Exchange (KSE) with more than 8 million --traded-shares in life and non-life scrips. Pak Reinsurance was the volume leader with 3.88 million shares followed by Adamjee Insurance with 3.77

million shares. Top gainers of the week include EFU Life Assurance which jumped by Rs9.47 to close at Rs69.97 and Adamjee Insurance which increased by Rs4.2 to close at Rs71.63 while Crescent Star Insurance fell by Rs1.26 to close at Rs4.99 and New Jubilee Insurance went down by Rs1.23 to close at Rs53.77 to be the major losers of the week.

US insurer, China co to pay for bad home fixtures WILMINGTON: A maker of Chinese drywall, builders and State Farm Insurance will pay for hundreds of US homes that were tainted with foul-smelling drywall to be renovated, an attorney for homeowners said. The parties agreed to remove problem drywall and rebuild up to 300 homes in Alabama, Mississippi, Louisiana and Florida. The tainted drywall, which was imported to rebuild after several catastrophic hurricanes hit the southern United States five years ago, has added to increased concerns about the quality of goods imported from China. The pilot program "will serve as a guide. It's embryonic and it looks toward a birth of an eventual global resolution," said Russ Herman of the Herman Herman Katz & Cotlar law firm. Herman is leading the lawsuits stemming from the thousands of homes that have been rendered uninhabitable by the drywall, which has been blamed for corroding metal, foul smells and health problems. If the agreement proves successful, it could be expanded to up to 3,000 homes with drywall made by Knauf Plasterboard (Tianjin). Participating homeowners will provide a release to State Farm Insurance, which along with other insurers and building suppliers helped fund the pilot. Herman said the program would be tweaked and altered along the way. It will cover removing of drywall and restoring the homes as well as compensating homeowners for moving, storage and alternate living costs. The program, and any potential to expand it, only covers homes with drywall made by a Knauf factory in Tianjin. It excludes more than 5,000 homes tainted with drywall from other Chinese manufacturers. Those manufacturers argue they do not belong in US courts, and have not participated in the litigation that was consolidated with federal Judge Eldon Fallon in New Orleans. The consolidated litigation is In re ChineseManufactured Drywall Products Liability Litigation, US District Court, Eastern District of Louisiana No. MDL-2047.-Reuters

Khi Press Club has its members group-insured KARACHI: The Karachi Press Club (KPC) has come up with group insurance of its members, said a statement issued by KPC. The Chairman of State Life Insurance Corporation (SLIC), Shahid Aziz Siddiqui, on Friday handed over the documents in this regard to the office bearers of the KPC. A KPC statement said that the office bearers of the Club led by its president, Imtiaz Khan Faran, visited the SLIC head office and received the documents pertaining to the group insurance.-APP

Bangladesh's celebrate white-washing of New Zealand in ODI cricket series in Dhaka

Monday, October 18, 2010

Canada concerned over shrink in cricket WC size

Stoner wins fourth straight Australia GP PHILLIP ISLAND: Ducati's Casey Stoner delighted his home fans by winning a fourth consecutive Australian Grand Prix at Phillip Island on Sunday. Stoner, who secured pole position on his 25th birthday a day earlier, completed the 27lap race in 41 minutes 9.128 seconds, more than eight seconds ahead of newly crowned world champion Jorge Lorenzo of Spain on a gusty day at the 4.45km circuit. Seven-time premier class champion Valentino Rossi finished third after battling through from eighth on the grid, snatching the podium spot from Ducati rider and future team mate Nicky Hayden of the United States on the final lap. "We didn't know what to expect before the race," a buoyant Stoner told a televised interview, referring to the changeable weather at Phillip Island that left pit crews scratching their heads for most of the weekend. "Jorge gave it a go and after I had a couple of second gap I thought I'd build on that slightly because he was running some pretty good times. "We managed to pull that gap, get us comfortable and ease into the race so we were very, very happy with this one."-Reuters

Indo-Aussie ODI falls victim to rain KOCHI: Steady overnight rain and an early morning shower washed out the first one-day international between India and Australia on Sunday. The rain had left puddles all over the outfield before the morning downpour ended any hopes of the match taking place, much to the disappointment of the 30,000 spectators that braved the weather to fill the Jawaharlal Nehru Stadium. Visakhapatnam is scheduled to host the second of the three-match series on Wednesday, while Margao is the venue of the final contest on Oct. 24. India have already completed a 2-0 sweep in the test series between the sides.Reuters

SHANGHAI: Murray of Britain holds the winner's trophy as he stands next to Federer of Switzerland after their final at the Shanghai Masters tennis tournament.-Reuters

Samir grabs ITF Junior tennis crown LAHORE: Pakistan's Samir Iftikhar avenged his singles quarter final defeat by world number 140th Lenz Julian by teaming with Jannis Kahlke of Germany to upset top seeded Indo/German Pair of Bava Haden and Lenz Julian 6/2 7/6 to lift the Doubles Title of ITF G4 Junior World Ranking Tournament held at Aviation club Dubai. Samir and Kahlke displayed brilliant Tennis with powerful return of serves and net play to oust the top seeds and won the first set with much ease and comfort,said the information made available here. The Indo-German pair of Bawa and Lenz put up strong resistance in the 2nd set and held two set points at 5/6 on

Samir's serves who saved with two aces and won the 2nd set in the tie break. This is 4th title ITF Junior ranking title for Samir who is 2nd junior from Pakistan after Aisam ul Haq to achieve this feat. The Pak German pair earlier played best match of the tournament by staging Gallant fight back against 3rd seed German Duo of Christ Constantin and Gohlke Delf from one set down and saved 4 match points in the second set at 4/5 to win 7/5 and 10/2 in the Super Tie Break to move to final. The match turned out to be a thriller when Samir and Kahlke were broken twice in the first set and went down

2/6. They made magnificent come back in the second set as both sides held serves till and Samir and Partner were broken in the 7th game to trail 3/5 and were 4 match points down to make come magnificent come back with superb return of serves and play to make 5 games all and clinched the set at 7/5 and went into super tie break decider where they raised their games to highest levels and exhibited brilliant court Kraft to clinch the tie break at 10/2. "I am pleased to win the doubles title for the country and I am confident that ministry of sports will continue extending financial assistance for my participation in other ITF events", he said.-APP

FIFA to probe WC vote-selling report BERNE: World soccer's governing body FIFA said on Sunday it would investigate a newspaper report that two members of its executive committee had offered to sell their votes in the contest to host the 2018 World Cup. The Sunday Times newspaper said the offers had been made to its reporters who were working undercover and posed as lobbyists for a consortium of American private companies. The report said Nigeria's Amos Adamu was filmed ask-

ing for money for a personal project and that Oceania Football Confederation president Reynald Temarii from Tahiti wanted money for a sports academy. FIFA will decide on December 2 in Zurich which countries will host the 2018 and 2022 World Cups. The choices will be made by the 24-strong executive committee "FIFA has already requested to receive all of the information and documents related to this matter (the Sunday Times report), and is awaiting to

receive this material," FIFA said in a statement. "In any case, FIFA will immediately analyse the material available and only once this analysis has concluded will FIFA be able to decide on any potential next steps. "In the meantime, FIFA is not in a position to provide any further comments on this matter." England and Russia are bidding for the 2018 finals along with joint bids from Spain/Portugal and Belgium/Netherlands.-Reuters

LONDON: Chandra Gocool, Cricket Canada's chief executive, has questioned the ICC's thinking on developing cricket around the world following the decision to shrink the 2015 World Cup to 10 teams, but expand the World Twenty20 to 16 teams. "Being an Associate Member country that has moved past T20 being the 'lightning rod' to our development, as we play the other two forms of the game currently, it begs the question what do we aspire to?" Gocool told ESPNcricinfo. The ICC has asked its governing council to examine the issue of qualification for ICC global events and make recommendations to the board, but Gocool says a 10-team event makes the likelihood of an Associate Member playing in the World Cup a challenging prospect. "Much depends on what the qualification process will look like for Associates to grow and be able to be part of this event in future."-Online

Sangakkara eyeing Australian test series COLOMBO: Sri Lanka's build-up to next year's World Cup continues when they leave for Australia on Sunday to play a three-ODI series. One of the biggest challenges ahead of Kumar Sangakkara and his team is winning next year's marquee tournament, and thereby emulate the achievement of Arjuna Ranatunga's side which won the World Cup in 1996, the last time it was held in the subcontinent. "When you play sides as good as Australia, if there are any small weakness they are highlighted. It will be interesting to see how far we've come over the last one-and-a-half years," Sangakkara said. "Every tour has brought improvement. What those improvement areas are, sometimes you identify at practice but sometimes they are more obvious in games." The Australian tour and the home series against the West Indies starting next month gives Sri Lanka their only opportunity to work on the grey areas and finalise the lineup.-Online

Murray drubs Federer to lift Shanghai title n n

Murray lifts title without losing a set 2nd Masters tournament win of season

SHANGHAI: Britain's world number four Andy Murray romped to a 6-3 6-2 win over Switzerland's Roger Federer to claim the Shanghai Masters title on Sunday. The 23-year-old Scot was in impeccable form throughout the one hour 25 minute contest, breaking the third seed's serve four times to dismantle the 16 time grand slam champion and claim his second Masters title of the season. "I have had a great week and played some of my best tennis, which I had to, to beat Roger," Murray said at the trophy presentation

of an event where he did not lose a set. The contest was the third meeting in a final between the pair this season with Murray losing at the Australian Open at the start of the year before gaining some revenge at the Toronto Masters in August. Federer appeared to run out of steam in the second set as Murray repeatedly sent the 29-year-old scurrying from side-to-side with an array of pinpoint cross-court winners. "Andy didn't give me many chances to pull off the really big shots today," Federer said.-Reuters

Bangladesh clean sweep Kiwis 4-0 DHAKA: Paceman Rubel Hossain stunned New Zealand with four wickets to help Bangladesh beat the tourists by three runs on Sunday and complete a 4-0 series sweep. New Zealand were bowled out for 171 with just three balls remaining and just shy of their target of 174, with Rubel taking the final wicket when he bowled Kyle Mills in a dramatic finish at the Sher-e-Bangla Stadium. Rubel finished with four for 25 -- his best figures in limited-overs internationals -- as Bangladesh successfully defended what was a meagre total. It was the fifth and final onedayer of the series. One match

was rained off. Rubel removed dangerman Brendon McCullum and helped reduce New Zealand to 20-5 with his fierce opening spell of 3-13 before Daniel Vettori and Grant Elliott put on 86 for the sixth wicket. Vettori, the New Zealand captain, made 43 and Elliott topscored with 59 as the tourists recovered before the momentum shifted back. Captain Shakib Al Hasan had earlier top-scored for Bangladesh with 36 off 47 balls. Opener Imrul Kayes made 34 as the home side were bowled out in 44.2 overs. Vettori took 3-32 and Mills 336.-Reuters

New Liverpool owners to watch debut derby LIVERPOOL: Liverpool's new owners John W Henry and Tom Werner changed their minds and decided to attend Sunday's local derby away to Everton after originally saying they would wait for a home match. Henry's New England Sports Ventures, owners of the Boston Red Sox, completed a takeover of the Premier League club. Henry said at the time that he and NESV chairman Werner would wait and have their first experience with supporters at Anfield, Liverpool's home stadi-

um. "We're football fans and we're here to root on the team and hopefully let the focus be on the pitch," Werner told Sky television at Goodison Park on Sunday. "I know this is a very important game. It's a very exciting day for both teams and I want to take in the experience." Liverpool head into the game in the relegation zone with just six points from seven games -the same as Everton who sit a place above them in 17th.Reuters

Chelsea drew 0-0 at Aston Villa

Van der Sar blunder costs United dearly LONDON: Manchester United threw away a 2-0 lead after a Patrice Evra own goal and an error by Edwin van der Sar saw them held 2-2 by West Bromwich Albion while Premier League leaders Chelsea drew 0-0 at Aston Villa on Saturday. Chelsea, who hit the woodwork twice late in the evening game, top the standings with 19 points. United, who started with striker Wayne Rooney on the bench, have now drawn five of their eight league games and are among four teams on 14. Arsenal, who came from behind to beat Birmingham City 2-1 at the Emirates, and Tottenham Hotspur, who ended Fulham's unbeaten start with a 2-1 win at Craven Cottage are level with United. On Sunday, Everton play Liverpool in the highly-anticipated derby (1230 GMT) at Goodison Park while Manchester City, who are in

the chasing pack behind Chelsea, visit Blackpool (1500). At Old Trafford, United looked to be cruising having taken a 2-0 lead after 25 minutes but Evra's own goal and a rare blunder from goalkeeper Van der Saar, who dropped the ball at the feet of Somen Tchoyi, saw the home side pegged back. Rooney played in England's goalless draw with Montenegro on Tuesday and said after the match, contrary to the claims of his club manager Alex Ferguson, that he was fully fit. Fit or not, the striker was among the substitutes against West Brom and Ferguson looked to have got it right when Rooney's replacement, Javier Hernandez, tapped in after goalkeeper Scott Carson dropped a Nani freekick in the fourth minute. The Portugal winger then added a second on the break.

West Brom, who won at Arsenal last month, continued to press though and within 10 minutes of the restart they were level. VAN DER SAAR BLUNDER United defender Nemanja Vidic was inches away from making it 3-0 when he headed against a post but moments later it was 2-1 courtesy of Evra's own goal. Then the usually reliable Dutchman Van der Saar, faced with the simplest of catches, let the ball slip from his grasp to Tchoyi who gleefully equalised for the hard-working visitors. Rooney eventually joined the fray for the last 20 minutes, but played on the left wing and made little impact as West Brom ended the game looking the more dangerous side. "It has gone from a fantastic first-half performance to giving the game away really, it

should have been four or five by halftime," Ferguson told Sky Sports News. "We've made some glorious chances and it's frustrating we are not killing teams off. It's not acceptable for the supporters or me." Of Van der Saar's blunder, he said: "Inexplicable, it's a mistake that Edwin probably would make the only time in his life. The last time he made a mistake like that was probably at primary school." A win for Chelsea would have taken the champions seven-points clear but, without several injured players including forward Didier Drogba, they were below par. Branislav Ivanovic and Nicolas Anelka hit the woodwork but so did Ciaran Clark for hard-working Villa. Arsenal fell behind to a Nikola Zigic header, levelled with a Samir Nasri penalty and took the points with Marouane Chamakh's impres-

sive run and shot just after the break. The win was spoiled at the end with a straight red card for Arsenal midfielder Jack Wilshere after a wild tackle that will have embarrassed manager Arsene Wenger, who used his programme notes to bemoan the decline in tackling standards. "He got the red card he deserved," said Wenger. "But it was his first tackle in the game and you have to acknowledge that he got a red card and he deserved it but he didn't spend the whole game kicking people, he didn't want to harm the player -- he mistimed his tackle." Spurs also trailed to a Diomansy Kamara goal but Roman Pavlyuchenko quickly levelled and Tom Huddlestone won it with a crisp, low shot although Fulham were furious it was allowed to stand after the referee ignored a linesman's offside flag.-Reuters

MANCHESTER: Manchester Unitedâ&#x20AC;&#x2122;s van der Sar reacts after West Bromwich Albionâ&#x20AC;&#x2122;s second goal during their English Premier League soccer match at Old Trafford.-Reuters

Analysis & Feature

Monday, October 18, 2010

US GIVES CURRENCY DIPLOMACY ANOTHER CHANCE

he Treasury's currency report delay s u g g e s t s Washington wants to give diplomacy another chance to convince China it is in everyone's interest to speed up the yuan's rise. By delaying the report until after a Group of 20 leaders summit in Seoul next month, the United States can defuse some political tension. However, it also puts the onus on the G20 to deliver more than just rhetoric on foreign exchange rates. Treasury Secretary Timothy Geithner probably won't be winning many friends in Congress, where lawmakers from both political parties back taking a tougher tack on Beijing. G20 LOOMS LARGER * Currencies were already front and center at G20 talks after IMF meetings last weekend failed to ease tensions. Forging consensus in such a diverse group will be hard. * There does not seem to be broad support for a "Plaza Accord" type of agreement on how best to realign exchange rates. European officials have stuck to wellrehearsed statements that

excessive currency volatility is unwelcome. * Geithner toughened his words somewhat last week, saying markets should determine exchange rates. TAKING OUT THE POLITICS * Waiting until after the G20 meeting means the Obama administration won't have to reveal its decision until after November 2 congressional elections. * Although China's currency is not a hot-button issue for voters, it is a source of frustration for unions and manufacturing-heavy states which are typically Democratic strongholds. * But the delay could spur Congress to act on legislation that would penalise China for keeping the yuan low. A bill that would punish China for its currency practices passed in the House of Representatives last month and two Democratic senators said on Friday Congress was prepared to move ahead with legislation. * Geithner told lawmakers at a September 16 hearing on China's currency that he shared their frustration with Beijing's slow progress in allowing the yuan to rise. The delay may harden some

lawmakers' view that Treasury is too soft on China. The yuan has been the focal point of relations that frequently see tensions over issues from Tibet and Taiwan to trade. GREEN LIGHT TO SELL DOLLAR * The delay does little to change the status quo for investors who will be happy to continue selling dollars and buying Treasuries in anticipation of the US Federal Reserve pumping more dollars in the economy. * It also leaves China free to allow only gradual yuan appreciation and puts upward pressure on the euro, yen and Australian dollar, which as free-floating currencies tend to absorb most of the dollar weakness. * By managing its exchange rate, China has built up a massive store of $2.6 trillion in currency reserves and is the biggest holder of US Treasury debt. Markets fear a move to label it a manipulator could spark retaliation, with a worstcase scenario involving China selling enough Treasury debt to provoke a sudden spike in US interest rates. -Reuters

Seeking a â&#x20AC;&#x153;least painfulâ&#x20AC;? austerity formula for Britain

aking the axe to pension benefits rather than jobs, and cutting bureaucracy rather than infrastructure investment, are what Britain's austerity drive should focus on to render the smallest hit to economic growth. If finance minister George Osborne is to achieve the 83 billion pounds ($133 billion) of spending cuts he promised in his June budget some degree of economic pain is inevitable. But economists say how hard Britain's growth potential is hit will ultimately depend not just on the figures but also the profile of the cuts: how they are spread and how much

of the burden is borne by the welfare state. Judging by the drip-feed of announcements ahead of next week's Comprehensive Spending Review, Britain's five-month-old coalition government has taken heed. In the past two weeks it has announced cuts to pension tax relief, a cull of publicly-funded regulatory bodies and the end of universal child benefit payments. Those measures indicate a direction of travel they represent only a small part of the overall austerity programme. Although Wednesday's statement will not detail every project that has been pared or abandoned, it will shape views

on how likely the government is to achieve its debt-cutting goals and whether recovery will be blown off course in the process. MULTIPLIER For each pound spent, different areas of government expenditure have a different impact on GDP growth -something economists know as the domestic multiplier effect. These calculations are theoretical but they throw up some interesting thoughts on what an "ideal" austerity package should look like, at least from the point of view of GDP growth. Construction projects, which tend to be labour intensive and

require few imports, score highly on the multiplier scorecard. The same goes for infrastructure investment, which has the added benefit of improving productivity. Britain's independent Office for Budget Responsibility estimates every pound of capital spending by the government boosts gross domestic product by exactly that amount, while every pound spent on welfare generates just 60 pence. When it comes to the public sector payroll, savings from pensions and wage restraint are far less damaging to an economy's growth potential than job cuts which often result in costly redundancy payments and a higher welfare

bill. "If I had to give two recommendations it would be not to cut capital spending so much and to try to find ways of minimising public sector jobs losses," said John Hawskworth, head of macroeconomics at consultancy PWC. "The private sector was flexible with regard to pay and working hours during the recession and this meant unemployment did not rise as much as feared. We need to see the same happen now in the public sector." WELFARE TRAP Political history is littered with failed government initiatives to slash the welfare state,

particularly in trying economic circumstances. And this time, from a growth perspective, Osborne should be wary about wanting to. Welfare cuts by nature have a greater impact on poorer families who, according to textbook economic theory at least, have a higher propensity to consume. The bulk of welfare spending is also highly dependent on the economic cycle, which makes it much less predictable. "Benefits are more difficult to contain if the economy slows," said Sam Hill, fixed income strategist at Royal Bank of Canada. "The pressure to find more savings from

benefits rather than departmental cuts makes the fiscal contraction more sensitive to economic growth." The government's hope is that tight fiscal policy will allow the Bank of England to keep interest rates lower for longer -- something that will help private enterprise expand to fill the gap left by a shrinking state sector. This was also the rationale behind the government's insistence that spending cuts, rather than tax rises, bear the brunt of the fiscal retrenchment. Its aim for an 80:20 split is ambitious, both relative to austerity packages in other parts of Europe and relative to history. Reuters

Retaliation in reserve as China faces yuan tensions E

xpect harsh words but no concrete retaliation from Beijing if the United States labels China a currency manipulator in a report due later on Friday. China is focused on trying to defuse tensions with the United States by yielding some ground in a mini-burst of yuan appreciation and hopes that these efforts will still pay off, even if Washington brands it a manipulator. But should the United States ratchet up the pressure yet further by passing into law a bill that could penalise China, Beijing will not be so docile, Chinese analysts say. "China is telling the United States that it is willing to help

to resolve the problems. Things have not gotten out of hand yet and both sides still have some room to manoeuvre," said Zhao Xijun, an economist at Renmin University in Beijing. president Barack Obama's administration faces a deadline on Friday to decide whether to formally label China as a currency manipulator. A desire to look tough on "unfair" trade practices ahead of US congressional elections on Nov. 2, in which Obama's fellow Democrats are battling to retain control of Congress, could tempt the administration to cite China for the first time in 16 years.

The Chinese commerce ministry made its feelings clear on Friday, warning the United States not to make a scapegoat of the yuan. Rhetoric aside, though, Beijing knows that the currency manipulator designation carries no specific consequences, apart from forcing Obama to seek consultations with China. PREPARING FOR THE WORST A different calculus would apply if the Senate approved a bill already passed by the House of Representatives that would allow the United States to slap duties on countries with undervalued currencies. "It will be a very serious issue if the US legislation is

approved by the Senate and signed by the president," said Li Wei, a researcher under the commerce ministry. For starters, China would challenge the US law at the World Trade Organisation -- a case that some trade experts think China would be able to win. Analysts say Beijing is also bracing for the law by considering possible retaliation, from imposing curbs on US businesses in China to the socalled nuclear option of dumping its holdings of US Treasuries. But Beijing is not going to jump the gun. It is first taking what it sees as pre-emptive steps to keep US anger from

boiling over -- and to keep the legislation from becoming law. "If China doesn't let the yuan appreciate a little bit, foreign criticism will be stronger. China wants to avoid a trade war with the United States," said Guo Tianyong, an economist at the Central University of Finance Economics in Beijing. To that end, Beijing has allowed the yuan to gain 2.6 per cent since it scrapped a 23month dollar-peg on June 19, quickening the appreciation in recent weeks as pressure mounted. ON THEIR OWN TERMS Ever sensitive to appearing weak domestically, Chinese

leaders have insisted that the yuan's rise is not a response to US pressure but part of a broader reform agenda to spur domestic consumption. They have also said that currency reforms will be done on China's own gradual terms. Central bank chief Zhou Xiaochuan told International Monetary Fund meetings in Washington that demands on China to let the yuan rise rapidly are akin to seeking a magic cure to a problem that requires a slow-working, herbal remedy. Foreign ministry spokesman Ma Zhaoxu tried to inject some levity into the dispute on Thursday: "If appreciation of a currency could solve all of the

world's economic problems, then what use would economists be?" But it will be no laughing matter if the United States follows up the currency manipulator report with real punitive measures. Although retaliation by China would likely hurt its own interests, rising nationalistic sentiment on the currency issue might force the government to take a tough stance, analysts say. "China wants to use diplomacy before a confrontation. It will have no choice but to engage in a trade war if all courteous means fail," Guo, of the Central University of Finance Economics, said. Reuters

US banks to stick with troubled servicing units US banks concerned the foreclosure crisis could force them to pay out billions of dollars have very few options for getting around the problem. Selling their servicing units, or even just offloading the most troublesome loans, might seem tempting, but it is unlikely to solve legal problems associated with the mortgages and buyers would likely be scarce in any case, analysts said. "I don't know what other option they have ... They'd be

selling at a time of stress and I don't think most would do that," said Ralph Cole, a portfolio manager at Ferguson Wellman Capital Management. The banks' servicing businesses are coming under scrutiny from state attorneys general and legislators investigating allegations that foreclosure documents were flawed. Possible penalties, the mounting costs of reviewing home- seizure processes and the growing risk to reputation is making the business less

palatable for major banks. Servicing arms collect mortgage payments from homeowners for investors and, in some cases, oversee foreclosures. The four largest US banks by assets dominate mortgage servicing, controlling 55.7 per cent of the marketing and administering more than $5 trillion in mortgages. The two largest mortgage servicers, Bank of America Corp and Wells Fargo & Co, report earnings next week, as

does the fourth-largest servicer, Citigroup Inc. The quarterly reports are likely to show the banks are putting more money aside to cushion themselves from higher litigation costs, but the higher costs come as credit problems ease. JPMorgan Chase and Co, the third-largest mortgage servicer, reported third-quarter earnings on Wednesday showing it added $776 million to its litigation reserve and put $622 million aside in case it is forced to buy back mortgages

it may have sold with paperwork problems. THE ADVANTAGES OF SERVICING There are advantages to retaining a large servicing business, even as costs increase, analysts said. Servicing is typically a stable revenue source for banks that helps offset more volatile operations such as trading. "These businesses are too key to what the big banks are trying to build as diversified financial service companies," said Marty

Mosby, a Bank analyst with Guggenheim Securities. "And all their problems are related to issues in the past, not issues going into the future." Owning a servicing unit also gives banks a relationship with borrowers that can be converted into origination business by offering refinancing and other products, Miller Tabak & Co analyst Tom Mitchell said. For a large Bank, having a servicing business is a bit like a retail store with its own branded credit card.

"You can capture more of the customer's business if you have that tie in," Mitchell said. But for smaller servicers, the benefits may not be so clear cut, particularly if they have to hire additional staff to review documents, Mitchell added. Rating agency Moody's Investors Service placed three smaller mortgage servicers -Bayview Loan Servicing, MetLife Home Loans and Litton -- on watch for a credit rating downgrade on Thursday. -Reuters

Thai "red shirts" rally to demand leaders be freed

Iraq's PM Maliki speaks during a meeting with members of the Iraqi National Alliance and the State of Law coalition in Baghdad. -Reuters

Israeli air strike kills 2 militants in Gaza Strip GAZA: An Israeli air strike Sunday killed two Palestinian militants in the northern GAZA Strip who had attempted to launch rockets at Israel, the Israeli military and Palestinian medics said. "Men were targeted in an air strike after they were spotted preparing to fire a rocket or a mortar shell at Israel and we identified a hit," an Israeli military spokeswoman said. Israel often carries out strikes against militant targets in the GAZA Strip, which is controlled by the Islamist group Hamas. The strikes generally target tunnels that militants use to smuggle in weapons from neighbouring Egypt. It was the first killing in an Israeli attack on militants in the GAZA Strip since Sept 27. The Israeli military says militants have fired more than 165 rockets so far this year.-Reuters

Iraq PM seeks regional support for new term BAGHDAD: Iraq's Shi'ite prime minister is touring capitals in the region, many of which fear he could alienate Iraq's Sunnis and give Iran too much influence, in search of support for his bid to form a new government. The lack of a new government seven months after an inconclusive election has sparked concerns of a spike in violence just as the sectarian slaughter triggered after the 2003 US-led invasion recedes and US forces start to withdraw. Prime Minister Nuri al-Maliki has so far only won clear backing from a Shi'ite group with links to Iran. He has reached out to the cross-sectarian, Sunni-backed Iraqiya bloc that topped the March vote, but Iraqiya leaders have so far refused to join a Maliki-led government. Iraq's Arab neighbours and the United States are worried about Shi'ite Iran's growing regional influence and want Maliki to

International & Continuation

Monday, October 18, 2010

include Iraqiya bloc in a powersharing deal to counter this. Iraqiya's leader, former prime minister Iyad Allawi, says excluding his alliance could lead to sectarian bloodshed. Saad al-Hadithi, a politics professor in Baghdad's University, said Maliki's goal was to ease concerns among countries like Syria, which have had reservations about him remaining in power. "(The trip) is an attempt ... to gain the support of these countries and ease reservations and disagreement with some of the countries," he said. Maliki flew to Syria last week seeking to improve sour relations with Damascus, was in Jordan on Sunday and was due in Tehran on Monday. Later this month he is expected to visit Turkey, a major trading partner and investor which has emerged as a key mediator since Iraq's election and broader supporter of Sunni interests in the region.-Reuters

AYUTTHAYA: Thousands of anti-government "red shirts" demonstrated in the old Thai capital of AYUTTHAYA on Sunday to demand the release of their leaders and scores of comrades detained since bloody protests in April and May. By 5 p.m. (11 a.m. BST), witnesses estimated a crowd of some 10,000 had assembled in the town, 76 km (47 miles) north of Bangkok, for the group's third big rally since September 19 and the latest sign of its revival since a military crackdown in May. Hundreds of police were deployed near a football stadium where the main rally was taking place. â&#x20AC;&#x153;We don't have leaders today. We are here on our own, the CRES canâ&#x20AC;&#x2122;t arrest us,â&#x20AC;? one speaker said from a makeshift stage, referring to the Centre for the Resolution of the Emergency Situation set up to coordinate the authorities' handling of the Bangkok protests. The capital, unlike AYUTTHAYA, is still under a state of emergency after 10 weeks of paralysing protests in April and May that ended with 91 people killed and nearly 2,000 injured. Political gatherings are banned under the emergency. Some 2,400 troops and police were reported to have been deployed in Bangkok earlier as the red shirts had threatened to hold a "mobile rally," with supporters riding around town before heading up to AYUTTHAYA. No incidents were reported. The red shirts are demanding that those behind the deaths in April and May be brought to justice. The authorities accuse the red shirt leaders of terrorism for the deaths and rioting. Red shirt supporters in the crowd in AYUTTHAYA called for an amnesty for their leaders, detained without trial since May. Analysts say the revival of the red shirts and the vacuum in its leadership raise the risk of deepening a violent, five-year political crisis. The government is concerned that radicals could emerge from within the movement to create unrest, pointing to a recent deadly blast in a suburban Bangkok apartment rented by an activist, which was packed with bombmaking material..-Reuters

Syrian, Saudi leaders to discuss Iran ties, Iraq n

n Syrian President Assad to visit Riyadh Talks are likely to focus on Lebanon, Iran and Iraq

Riyadh: Syria's ties to Iran and the political void in Iraq are expected to figure in talks on Sunday when Saudi Arabia's King Abdullah meets Syrian President Bashar al-Assad, analysts and diplomats said. The two leaders also are expected to discuss tensions in Lebanon over a U.N.-backed tribunal. Announced in Saudi official media, Assad's second trip to the world's top oil exporter this year is the latest sign of a thaw in bilateral relations. The meeting comes days after a state visit to Lebanon last week by President Mahmoud Ahmadinejad of Iran, whose nuclear energy programme Riyadh fears could lead to Iran becoming a nuclear-weapons state. Riyadh has been trying to convince Syria to loosen its alliance with Iran and adopt a more Arab-focused foreign policy with the kingdom, hinting at stronger economic cooperation. The 2005 killing of Lebanese statesman Rafik al-Hariri drove a wedge between Saudi Arabia and Syria but both countries have been trying to calm tensions over the tribunal which may indict members of Hezbollah, Iran's main ally in Lebanon. "I think the main theme will be Lebanon," Saudi political

analyst Khaled al-Dakhil said. Saudi newspapers gave wide coverage to Ahmadinejad's visit to Lebanon last week. Saudi-owned daily Asharq al-Awsat said: "Iran had decided to operate in Lebanon openly rather than from behind a smoke screen." Assad and Abdullah visited Lebanon together in July to avert a crisis between Hezbollah, also backed by Syria, and factions aligned to Prime Minister Saad al-Hariri, who is the son of the slain Sunni Muslim leader and is backed by Riyadh. Hezbollah, which is part of the national unity government, has denounced the U.N.backed court as a tool of US and Israeli policy and called on Hariri to repudiate the tribunal. While Saudi Arabia and Syria try to calm tensions in Lebanon they so far remain at odds over the tribunal. Riyadh has long supported the Haguebased court. Syria, initially implicated by U.N. investigators of the bombing that killed Hariri, always has viewed the tribunal as politically motivated. Syrian officials say any indictments of Hezbollah would be considered as targeting Syria too. The Saudis might ask Assad to restrain Hezbollah, Dubai political analyst Theodore Karasik said.

"Keeping a lid on Lebanon's political factions is especially critical in the current security environment," he said. Hezbollah leader Sayyed Hassan Nasrallah said in July that Hariri had told him the tribunal would indict "rogue" members of the Shi'ite guerrilla group for his father's killing. Saudi Arabia, a US ally alarmed by Iran's growing regional influence since the 2003 Iraq war, has tried for two years to persuade Damascus to loosen its alliance with Iran. But little has emerged on the ground in terms of economic cooperation since King Abdullah visited Syria in a landmark visit last year. Some Saudi firms have put out feelers to Syria. In April, a private Saudi waste-water company was granted contracts worth around $3 million. "I don't think that economic relations will take off much any time soon," a Western diplomat in Riyadh said. Dakhil said Assad and Abdullah also could discuss the political vacuum in Iraq after an inconclusive vote in March, fuelling concerns that insurgents might exploit the void. "In Iraq the differences between Saudis and Syrians are much less than in Lebanon," Dakhil said.-Reuters

Two of four trapped Ecuadorean miners found dead

QUITO: Two of four men underground when a tunnel col- mine the two men's fate. trapped in an Ecuadorean mine lapsed early on Friday. In Chile the 33 miners surcave-in were found dead on Officials blamed the accident vived for two weeks on limited Saturday in the latest accident on water leaks. rations until rescuers made conto hit the industry in Latin "We have found two bodies. tact. Their rescue, after more America. The rescue operation continues than two months deep under Contrasting with the jubila- and we think the other two have remote desert, triggered euphotion at this week's rescue of 33 a good chance of being alive," ria across the continent. miners in Chile, the two government mining official It also put a spotlight on minEcuadorean miners' bodies Jorge Espinosa told Reuters. ing safety in Latin America were brought out to disconso- "They were working in the part where there are still many accilate relatives and officials at the above the collapse." dents, though standards have small gold mine in Portovelo About 100 rescuers were at improved dramatically in resolved sooner until 25th Oct. -Online near the Peruvian border. the scene, trying to remove recent decades compared to the The miners were trapped rocks and insert a small probe horrors of past centuries. Continued from page 12 No #4 some 500 feet (150 metres) with a camera inside to deter- Reuters can invest with confidence." The long-awaited spending review will give details of cuts worth 83 billion pounds over the Continued from page 1 No #6 next four years in an austerity plan designed to secure economresponsible for it. "We do not want a Pakistan where there is no reverence for the judiciary and the ic recovery. Osborne aims to reduce a deficit of 11 per cent of Supreme Court", he added. He also said that worst rigging was held in the elections of 2008 against PMLnational output to just over 2 per cent in five years. Conservative N. Mian Nawaz Sharif also said that the country is in deep crisis at the moment. He opined that positive Prime Minister David Cameron, who leads a coalition govern- minded people have rendered great sacrifices for the country. PML-N Leader also blamed the government ment with the Liberal Democrats, says Britain must cut the for always being on the begging side, disgracing the state's image. "China got independent later from ours deficit quickly to reassure markets. but it is standing in the leading countries of the world and the countries who implemented our five-year Unions have threatened coordinated strikes to protest against development plans were touching the heights," he said. He said that justice should be done in Akbar expected job losses. France, Spain and Greece have already seen Bugti's assassination case in order to ensure peace in Balochistan. -NNI mass rallies and industrial action against cost-cutting measures Continued from page 1 No #7 such as pension reforms. Osborne played down suggestions that and Senator Ishaq Dar were also present on the occasion. Serious political and economic problems being the scale of the cuts risked opening a rift between his centrefaced by the country and the role of political parties in improving the present situation was discussed in the right Conservatives and the centrist Liberals, who opposed big meeting. According to the sources, the meeting also reviewed the Pakistan Muslim League unification cuts while in opposition. The cuts will touch most areas of pub- prospects with the PML-Q leaders. The participants of the meeting unanimously agreed that the federal govlic life, with nearly all government departments expected to ernment should bring about a positive change in its attitude and implement the orders of judiciary. -Online reduce spending by about a quarter over four years. Continued from page 1 No #8 Welfare claimants will face greater scrutiny in an attempt to battle in Pakistan was the battle between the forces of moderation and democracy on the one side and weed out fraud, and child benefit payments will be axed from 2013 for families where either parent earns over 44,000 pounds that of extremism and religious bigotry on the other. Shaheed Mohtarma Benazir Bhutto was the symbol a year. Osborne said people caught trying to defraud the benefits of resistance against militancy and attack on her on this day was indeed an attack on all forces of modersystem three times would lose their right to state money. Those ation, he said. "We must win this battle if we are to survive as a modern, moderate and democratic nation where ballot and not bullet will determine the direction we take", he said in his message. "Those who laid making mistakes on official forms would be fined 50 pounds. All banks will have to sign up to a code of conduct on tax down their lives on this day three years ago are the heroes and heroines of the battle against extremism. avoidance by November, he added. So far, only four out of 15 They have lit the path with their blood for future generations to traverse in the fight against obscurantism, major UK banks have agreed to do so. Labour's finance militancy and extremism. They did not die in vain; they gave up their lives so we lived in freedom, digspokesman Alan Johnson described the cuts as "economic nity and hope." "The martyrs of Karsaz are the strength of the nation and we salute their courage and loyalty, he said adding, "Even in a distant age and clime they will serve as inspirational models and motivate masochism" and said they would damage growth. -Reuters

CONTINUATION No #1

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number of resolutions on various issues like poverty, terrorism, price hike, unemployment, national sovereignty and publishing of hatred literature, asking the government to resolve these problems in an appropriate manner. Among others, Pir Mazhar Saeed Kazmi, Haji Haneef Tayyab, Pir Afzal Qadri, Sarwat Ejaz Qadri, Qari Munir Ahmed Jeelani, Abdul Hameed Saifi, Syed Riaz Hussain Shah, Rana Muhammad Iqbal and Abdul Rehman attended the convention and expressed their views to ensure peace and stability in the country. -NNI

No #2

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security sector. "Combination of a lack of political will, fear of the khakis, incompetence and resistance by the security sector resulted in limited oversight. However, it is not specific to Pakistan," he added. The other point is for the incumbent government not to use the security sector - army and intelligence agencies - for their political purposes whether it is the issue of wire-tapping of political opponents or the failure to provide effective and efficient civilian governance in areas already secured and held by the army after a military operation (Swat-Malakand and FATA). Such instances invariably lead to governmental reliance on nonpolitical factors, which, in turn, weakens democratic space, he added. Mushahid, who is also the chairman of Pak-China Institute, however said that Pakistan currently presents a unique phase of its political transition, when the 'old establishment' is no more, with the emergence of new power players, who influence the national discourse and decision-making. "Today, no single institution or individual is fully in-charge of Pakistan, or can call the shots on their own. Rather, the militarysecurity establishment, the political establishment, an autonomous judiciary, an independent and free media," he said. "On at least three occasions in Pakistan's history, the establishment has split due to upheavals on the ground. In 1971, when the second military regime was removed by the military brass itself to pave the way for restoration of democracy under an elected, civilian government following the secession of Bangladesh. In 1993, when political conflict between the President and the Prime Minister threatened to split the system at its seams, the Establishment discarded its 'godfather,' Ghulam Ishaq Khan, to engineer a political change via a 'soft coup'. And in 2007-2008, the higher judiciary broke with the Establishment for the first time in Pakistan's history," he said. "Military rulers represented the interests and objectives of the Establishment when the Army ran the country. Mushahid however said the Army's preponderant role in Pakistan's polity is due to several other factors. "First, there is the failure of politicians to fashion 'rules of the game' among themselves, and their continuing inability to present a 'united front' before the military. At the first available opportunity, the military is 'invited' to intervene, or a military coup is welcomed as an easy option to remove rivals," he asserted. -Online

No #5

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However, bulls managed to bounce back on Wednesday with heavy buying on higher international oil prices which reached near $83 a barrel and on hopes of healthy result announcements while the adjournment of NRO hearings too supported the market therefore index closed the day with a gain of 97 points. Thereafter, some limited positive activities were observed during the last two days mainly supported by the index heavyweight OGDC while buying also was seen on hopes of FoDP pledges during their meeting in Brussels. However, index didn't manage to end with major gains due to profit booking by the investors. Therefore it closed 19 points up on Thursday at its highest levels of about two and a half months while it gained 22 points on Friday.Investor participation witnessed a minor decline as 450 million shares traded during the week which is 9 million less than a turnover of 459 million shares a week earlier. Out of total 432 active issues 239 advanced and 174 declined while 19 issues remained unchanged. Market experts say that the developments on the political front and the proceedings on NRO hearings would drive the Continued from page 12 No #3 market sentiments in the coming days. Some of them are also of Khan has informed that fake degree cases of 58 members, as the view that technically market should see correction at the provided by HEC (Higher Education Commission) would be resistance level of 10,500 points.

people to fight the bigot and the militant to the finish". Nearly two hundred Jan-Nisaran-e-Benazir, fans of democracy and ideological foes of militancy were martyred in Karachi on this day when the terrorists struck the convoy welcoming the icon of moderation Shaheed Mohtarma Benazir Bhutto on her return journey to Pakistan from almost a decade in exile. "On this day let us all commit to continue the fight against extremism. Let us also on this day vow to uphold the principle of parliamentary democracy in which the people through free and fair vote at regular intervals decide the fate of the country, and not a handful of individuals", the PPP Co-Chairman said.-Agencies

No #9

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per cent as total assets reached Rs6.3 trillion in 9MCY10 from Rs6.07 trillion at CY09.

No #10

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On the other hand, biggest weekly selling was witnessed from banks which sold $18.67 million of shares in the local bourse against the buying of $11.74 million, thus turning the net selling worth of $6.93 million.

No #11

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not heed to MQM reservations. MQM has time and again picks-apart government for not riveting the violence against MQM, failing to cap target-killing spree in the city, and due to Sindh government's dilatory tactics MQM had started to revisit its policy to stay with coalition. Meanwhile MQM's Rabita Committee meeting was being held simultaneously in London Karachi in which deep concerns were expressed over the recent killings of its activits and also pondered over the future strategy including quitting the coalition. Earlier, Governor Sindh Dr Ebad telephoned PM Gilani and conveyed his party's reservations. Meanwhile, MQM leader Hyder Abbas Rizvi while talking to some news channel said that his party is considering various option, however refuses to confirm or refute the news regarding stepping out of coalition.

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Talks only option, Iran retells world

KARACHI: A woman giving thumb impression before casting her vote during the by-elections in Orangi Town PS-94, in a government school. -Online

Decision taken on ill-performance, court verdicts

19 top-officers demoted as OSDs ISLAMABAD: A total of 19 top bureaucrats of different services groups have been made OSD by the federal government due to their ill performance as well as after court verdicts, sources in Establishment Division revealed Sunday. The Establishment Division sources told NNI that these OSDs are still waiting for their transfer orders to new place of postings. As per details, Hassan Waseem Afzal and his wife were first victims of the present government as they were allegedly involved in the

then speaker national assembly and present Prime Minister Gilani on the dissolution of previous government of Pakistan Peoples Party. Other BS-21 bureaucrats including Ziauddin Butt was made OSD on July 07 2010, Shafqat Hussain Naghmi on March 03, 2010, Chaudhry Abdul Majeed on April 04, 2010, Fakhruddin on December 03, 2009, Syed Javed Ali Shah Bukhari on July 09,2010, Shaukat Ali Khan on July 01, 2010, Kamran Lashari on September 17,2009 have been made OSD.

Govt won’t let emergence of state within state: minister

Legislation, Parliament’s prerogative, says Awan LAHORE: Federal law minister Babar Awan Sunday underscored the need to strengthen the democratic norms in the country, adding that politics within an institution will not be allowed. During a press conference in Lahore, federal law minister said parliament is the sole authority to amend the Constitution. "Undemocratic actions have always made Pakistan to regress but now we will make the country strong through continuity of the democratic process", federal law minister pointed up. He said that he is very pleased that the courts remained open in night

too. “We will not let emergence of a state within a state", the minister stressed. He called upon all the political parties to get ready for general election 2013. He said that a joint session of the Parliament would be held on November 1. Federal law minister Babar Awan further added nation is the real power for Pakistan and people through voting will decide the fate of the country. There is a need to strengthen democracy while urged the need to enhance and support democratic culture in the country, Babar Awan concluded. -Agencies

SC to review executive orders withdrawal news

Pemra, 3 media heads to front SC ISLAMABAD: A 17-member bench of the Supreme Court chaired by CJP would be reviewing the issue of reports by private TV channels, regarding expressing desire of withdrawal of (earlier) executive orders of reinstatement of judiciary. CJP had issued directives to government for clarification of these reports, while Pemra head and directors of three private TV channels would also be summoned for their explanations regarding the volatile controversial issue. A detailed explanation is expected to be submitted by PM or any

federal minister, however strong possibilities are there that ministry of law and parliamentary affairs would itself be doing the job. A local TV channel has reported that the 17-member bench would only be reviewing this particular case, while other benches would carry on with their usual routine cases. Strict security measures on the occasion have been ensured, which include special passes to enter the offices of petitioners, lawyers and the main court room, and installation of CCTVs for close monitoring of the premises. -Online

Vow to hit tax evaders as big spending cuts loom

UK to clamp down on welfare, banks LONDON: Britain will clamp down on welfare fraud, slash government spending and press banks to pay more tax in an attempt to cut its record peacetime budget deficit, Chancellor George Osborne said on Sunday. Speaking before a spending review that will deliver the biggest public cuts in decades, Osborne

dismissed opposition criticism that the plan was "economic masochism." "We have to see this through," he told the BBC. "We were on the brink of bankruptcy. If we are going to have growth and jobs in the future, we have got to move this country into a place where people See # 4 Page 11

The grade 20 bureaucrats, including, Miss Rukhsana Rehman on July 03, 2010, Liaquat Ali Khan on June 05, 2005, Rana Naseem Ahmed on January 20, 2007, Captain (Retd) Muhammad Aftab on July 05, 2008, Captain (Retd) Fazail Asghar on December 12, 2009, Syed Tahir Shehbaz on August 02,2010, Squadron leader (Retd) Muhammad Irfan Elahi on April 18,2010 , Rana Altaf Majeed on September 23, 2009 and Saud Aziz on April 20,2010 have been made OSD.-NNI

TEHRAN: World powers have no option but to talk with Iran over its nuclear programme, Iranian President Mahmoud Ahmadinejad said on Sunday in defiant comments ahead of next month's negotiations. "We said from the start that the best way is to talk to Iran. You don't have any other option. All other ways are blocked," said Ahmadinejad, commenting for the first time since the dates for the negotiations between the six world powers and Iran were fixed. The six world powers -- the United States, Britain, China, France, Russia and Germany -- are to hold talks with Iran from November 15 to 18 to address Western concerns over Tehran's nuclear programme. The powers led by Washington suspect Iran is masking a weapons drive under the guise of what it says is a purely civilian atomic programme. The talks have been deadlocked

since October 2009 when the two groups met in Geneva. Ahmadinejad stressed that the talks must be based on "mutual justice and respect" and that the world powers must respect Tehran's preconditions. He has repeatedly insisted that the world powers answer whether they are committed to the rules of the UN atomic watchdog and whether they want to cooperate or instead "pull a trick" on Iran. He also demands that international powers abide by "logic" and express their views on Israel's atomic weapons. The Jewish state is widely recognised as the sole if undeclared nuclear weapons power in the Middle East. Speaking Sunday in the northwestern city of Ardebil in an address broadcast live on state television, Ahmadinejad indicated that the response of world powers to these conditions could influence the direc-

tion of the November talks. "We would like to know your logical and lawful opinion" on these conditions, said Ahmadinejad to a cheering and whistling crowd. "You may keep silent, but silence to us means that you are... backing the Zionist regime's atom bombs and that you are not seeking friendship through talks. "Feel free to make a choice. But talks on this second path (keeping silent on Iran's conditions) will not yield anything, but what you have gained so far. You won't get anything more," Ahmadinejad added. Iran has repeatedly argued that arch-foe Israel must join the nuclear Non-Proliferation Treaty (NPT) to which Tehran is a signatory. Israel, like Washington, has not ruled out a military strike against Iran to stop its nuclear programme. Ahmadinejad stressed that Iran would not give up any of its rights. Agencies

Sunni Ittehad Council announces long peace-walk ISLAMABAD: Sunni Ittehad Council Sunday announced to hold long march on November 27 from Islamabad to Lahore to highlight the importance of Nizam-e-Mustafa (PUBH) in ensuring peace and stability in the country. Chairman of the Council Sahibzada Fazl Karim made this announcement while addressing the Ulema and Mashaikh Convention held here under the aegis of Sunni Ittehad Council.

A large number of Ulema and religious scholars belonging to Sunni school of thought and their followers attended the conference. The march would start from the shrine of Hazrat Bari Imam (RA) and culminate at the shrine of Hazrat Data Ali Hajveri (RA) in Lahore, he said. Fazl Karim, who is also MNA, announced that he and like-minded people would contest the next general elections from the platform of

the Sunni Ittehad Council, urging Ulema and Mashaikh to get united to play an active role in national politics. He said Pakistan is facing the biggest challenge of terrorism and an effective strategy is required to uproot this menace from the society. He appreciated the efforts of security forces in flushing out the militants from the tribal areas. The Ulema convention passed a See # 1 Page 11

Mushahid spells out

steps for political stability ISLAMABAD: PML-Q secretary general Mushahid Hussain Sayed Sunday called upon the political forces to establish certain "rules of the game" to resolve contentious issues inside the Parliament through consultation and consensus so as there is no recourse to a 'referee' from the outside. "Pakistan has little tradition of institutional parliamentary oversight of the security sector, rather the focus has been on individual control or bureaucratic oversight through powerful and competent civil servants," while addressing the visiting students, scholars and academia here at the PML House in his lecture and Q&A sessions about his recent paper on civil, military relations produced for a local think tank, according to a press release. "For instance, powerful finance ministers like Mohammad Shoaib in the days of Field Marshal Ayub Khan and Ghulam Ishaq Khan under General Zia often over ruled the military on budgetary issues. Replying to a question about the lack of parliamentary oversight, Mushahid said there were reasons why Parliaments in general and parliamentary committee on defence have not been able to oversee the See # 2 Page 11

ECP to hear cases of MPs fake degrees ISLAMABAD: Election Commission of Pakistan (ECP) would be hearing the cases of fake degrees of 15 Parliamentarians today, (Monday). Those summoned include three MNAs, 11 MPAs of Sindh and one of Sindh. MNAs include, Hayatullah Tareen, Ghulam Dastagir Rajar, and Mazhar Hayat. Punjab Assembly members summoned, include, Samina Khawar Hayat, Ejaz Ahmad, Afshan Farooqi, Mir Badshah Qaisarani, Safdar Gul, Naseem Nasir, Khawaja Shumaila Rana, Seema Kamran, Farah Deeba, Majida Zaidi, Saima Aziz and Baloch MPA Muhammad Khan. The spokesman of ECP Afzal See # 3 Page 11

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