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LOGO
August 17, 2009
Statistics
KSE-100 Index
Previous Index
8,058.46
Current Index
8,011.31
Change %
(0.59)%
YTD (CY09)
39.25%
YTD (FY10)
10.19%

International Indicators
 
Close
Percentage
BSE-30
15,411.63
(0.69)%
HANGSENG
20,893.33
0.15%
NIKKEI 255
10,597.33
0.76%
FTSE
4,714.00
(0.87)%
DJIA
9,321.40
(0.82)%
SSEC
3,046.97
(2.98)%
NASDAQ
1,985.52
(1.19)%

S.C.R.A
Aug 13, 2009
$4.138mn
Aug 2009
$26.164mn
YTD
$31.131mn

Money Market Updates
Tbill (6 months) Jul 15, 09
11.38%
Tbill (12 months) Aug 12, 09
12.16%
KIBOR (3 months) Aug 15, 09
12.18%
KIBOR (6 months) Aug 15, 09
12.19%
PIB (10 years) Aug 15, 09
11.97%

Exchange Rates
Inter-Bank Currency Rates
Rs/EURO
117.38
Rs/UK
136.74
Rs/US
82.67
Rs/OMAN RIYAL
213.47

Commodities
Oil
$66.96/barrel
Oil Change in %
(5.38)%
Gold
$944.80/ounce
Gold Change in %
(0.79)%

Inflation
CPI Gen. Jul 09 (YOY)
11.20%
CPI Gen. FY10 (Jul 09)
11.20%
NFNE Core INFL Jul 09 (YOY)
14.00%
NFNE Core INFL FY10 (Jul 09)
14.00%

Economic Indicators
GDP Growth FY09E
2.00%
Per Capita Income
$1,046
Population
167.17mn
US$ Reserves (Aug 08, 09)
11.85bn
Trade Deficit (Jul 09)
$(1.15)bn
Curr. A/C (Jul 08-Jun 09)
$(8.86)bn
Remittances (Jul 09)
$747.22mn
Foreign Investment (Jul 09)
$195.6mn
All Scheduled Banks Deposit Base (Aug 08, 09)
Rs.4,114mn

Daily Returns and NAVs
as of Aug 15, 2009
 
Offer
Redemption
POBOP
51.5517/-
51.0362/-
Daily Return
11.01%
POAIIF
52.3665/-
51.8428/-
Daily Return
7.67%
POAIF
54.11/-
52.76/-
Daily Return
3.46%
POASF
54.24/-
52.88/-
Daily Return
6.91%
POAF
11.11/-
Daily Return
13.04%
* Daily Returns are calculated as per MUFAP guidelines

Inflation
AMC Ratings
AM3+
POBOPAPF
Fund Stablility Rating
A(f)
POAF Fund Rating
AA-
Economy

Key policy rate reduced by 100 basis points to 13 percent, 'corridor' for O/N repo rates introduced
Recognising the positive microeconomic developments, the State Bank of Pakistan on Saturday reduced its key policy rate by 100 basis points to 13 percent to provide impetus to growth and announced introduction of a 'corridor' for the money market overnight repo rates to improve liquidity management and foster stability and transparency in the money market operations, with effect from August 17. more... (BR)

Removal of subsidies from power tariff, transfer of oil price: changes may further slow down economic activity
The State Bank of Pakistan has said that removal of subsidies, power shortage and NPLs are key risks and challenges for the country's economy and end of subsidies on power and concurrent transfer of international oil price changes may risk further slowdown in economic activities in future. The SBP in its monetary policy statement said that power shortage and rising non-performing loans (NPLs) are also most critical risks for the country's economy. more... (BR)

SBP sees current account deficit below five percent
The State Bank of Pakistan has predicted that exports and imports are unlikely to pick up substantially due to the severity of global recession and slowdown in domestic economic activity. The central bank on Saturday said that although global recession had a dampening effect on Pakistan's exports, which fell by 5.9 percent, the broad-based reduction in imports by 10.5 percent limited the trade deficit to 12.5 billion dollars. more... (BR)

New framework for monetary operations
The State Bank of Pakistan (SBP) will adopt a new framework for its monetary operations by introducing a corridor for the money market overnight repo rate effective August 17, 2009. "The introduction of this framework will enhance effectiveness of market signalling, improve liquidity management, and foster stability and transparency in the money market operations," the SBP said in its monetary policy statement issued on Saturday. more... (BR)

US to steer Pakistan out of power crisis: Holbrooke comes with new mandate
In a major policy shift, the US Special Representative to Pakistan and Afghanistan, Richard Holbrooke, on Sunday said that his country would assist Pakistan in steering out it from its worse energy crisis. He is currently in Pakistan on his fifth official visit since assuming this charge, and this time he focused on the energy crisis, instead of combating terrorism as he had done in his earlier visits. more... (BR)

Humayun accuses ministry of creating crisis
The Ministry of Industries has deliberately created the sugar crisis in the country to fleece the poor consumers, former Federal Commerce Minister Humayun Akhtar Khan said here on Sunday. more... (BR)

MPS hemmed in by fiscal constraints?
"Although the final consolidated fiscal deficit during first three quarters of FY09 was within target, higher expenditure related to IDPs and security in the fourth quarter of FY09 has resulted in more than targeted fiscal deficit. Despite the likely slippages from the budget estimates, the fiscal deficit for FY09 is expected to be lower than the 7.6 percent deficit of the previous year..." more... (BR)

FBR's 'Anti-Evasion Cell'on the cards
The Federal Board of Revenue (FBR) is planning to set up an 'Anti-Evasion Cell' in the Sales Tax Wing to unearth evasion of sales tax and federal excise duty (FED) and organised tax frauds being committed by high-risk sectors, showing abnormal tax profiles. more... (BR)

Sector Briefing

Rate-cut gives no cue to banks
Continuation of tight monetary policy stance of the State Bank of Pakistan (SBP) will have neutral impact on the banking sector of the country, according to an analyst at The Financial Daily. more... (FD)

Businessmen welcome 1pc cut
As the State Bank of Pakistan (SBP) has opted for 100 basis points cut in its key discount rate, country's businessmen --who were expecting a substantial cut-- have welcomed the move. more... (FD)

71 wells to be dug for gas exploration
Oil and gas exploring companies have informed Ministry of Petroleum and Natural Resources that gas reserves -- ranging between 60 to 80 trillion cubic feet -- are existing in Miano and Swan gas fields and 14 wells will be dug in Sawan and 57 in Miano for exploration of gas in the next 4 to 6 years. This was revealed in a joint report of national and international gas exploration companies, working in the country. more... (FD)

Brokers demand Rs950mn fund
Investors to lose millions of rupees
Investments worth million of rupees by thousands of investors are at stake as Karachi Stock Exchange (KSE) management's decisions will only secure less than 20 per cent of the affected clients' claimed amount which is stuck with expelled members. more... (FD)

Textiles, auto and electronics: NPLs rise, credit utilisation falls
Weak growth in textiles and sharp decline in the demand for and production of automobiles and electronics pushed up the Non-Performing Loans (NPLs) besides effecting fall in credit utilisation of these sectors. The State Bank of Pakistan on Saturday said that rise in NPLs and the consequent banks' reluctance also explain the low credit extension to the private sector. more... (BR)

(BR) Business Recorder, (D) Dawn, (N) The News, (DT) Daily Times, (FD) The Financial Daily
Research Team:
Shoaib Ali Khan
Department Head
Shayan Hasan
Research Analyst
Salman Kazmi
Research Analyst
Imran Altaf
Research Analyst
Faizan Ahmed
Research Analyst
Majid Butt
Research Analyst
Faiz Malik
Database Manager
Separator
Disclaimer:
This news update is being circulated for information purposes only and no action is being solicited based on it. Information and calculations presented in this news update have been generated from sources which we believe to be reliable, however we do not represent that it is accurate, complete and should be relied upon.  Pak Oman Asset Management Company Ltd. does not assume any liability on it. This news update or any part of it should not be reproduced, published or distributed without prior permission