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August 27, 2009
Statistics
KSE-100 Index
Previous Index 8,246.72
Current Index 8,319.74
Change % 0.89%
YTD (CY09) 41.85%
YTD (FY10) 16.16%

International Indicators
  Close %age
BSE-30 15,769.85 0.52%
HANGSENG 20,456.32 0.10%
NIKKEI 255 10,639.71 1.36%
FTSE 4,890.60 (0.53)%
DJIA 9,543.52 0.04%
SSEC 2,915.80 (2.59)%
NASDAQ Composite 2,024.43 0.01%

SCRA
Aug 25, 2009 3.736
Aug 2009 40.980
YTD 45.947

Money Market Updates
6m T-bill (Aug 26, 2009) 12.44%
12m T-bill (Aug 26, 2009) 12.42%
3m KIBOR (Aug 26, 2009) 12.51%
6m KIBOR (Aug 26, 2009) 12.52%
10 yrs PIB (Aug 26, 2009) 12.43%

Exchange Rates
Inter-Bank Currency Rates
Rs/EURO 118.66
Rs/UK 135.41
Rs/US 82.95
Rs/OR 213.59

Commodities
Oil $71.26/barrel
Oil Change in % (1.12)%
Gold $946.70/ounce
Gold Change in % (0.22)%

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

Economic Indicators
GDP Growth FY09E 2.00%
Per Capita Income $1,046
Population 167.26mn
US$ Reserves (Aug 15, 2009) 12.96bn
Trade Deficit (Jul 09) $(1.15)bn
Curr. A/C (Jul 09) $(606)mn
Remittances (Jul 09) $747.22mn
Foreign Investment (Jul 09) $195.6mn
All Sch. Banks Deposit Base (Aug 15, 2009) Rs.4,098bn

NAVs and Returns
as of Aug 26, 2009
Funds Offer Redemption
POBOP 51.5486/- 51.0331/-
Daily Return 10.38%
POAIIF 52.4140/- 51.8899/-
Daily Return 9.58%
POAIF 54.48/- 53.12/-
Daily Return 144.87%
POASF 54.57/- 53.21/-
Daily Return 110.08%
POAF 11.09/-
Daily Return 12.81%
*Daily Returns are calculated as per MUFAP guidelines

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

RPPs of 2,250 megawatts approved by Cabinet
The Cabinet has given approval to install 2250 MW fast track rental power plants to overcome the prevailing energy shortage. The meeting, chaired by Prime Minister Yousaf Raza Gilani, discussed the demand-supply situation of electricity in the country and decided to install fast track power projects to bridge the gap before the end of this year. more... (BR)

Medium-term outlook still fragile: IMF
The medium-term economic outlook for Pakistan is fragile and the country faces significant risks, the International Monetary Fund (IMF) said in a review. Pakistan agreed in November to an IMF emergency loan package of $7.6 billion to avert a balance of payments crisis and shore up reserves. Last month, the fund increased the loan to $11.3 billion, and also released a third tranche of $1.2 billion. more... (BR)

$8.8 billion foreign loans received from donors, IMF in 2008-09
Pakistan received foreign loans, amounting to 8.8 billion dollars from international donors and countries, including the International Monetary Fund (IMF) during the 2008-09 financial year. Among the donors and financial institutions, the IMF was the lead lender during the last financial year and provided 3.948 billion dollars under the 7.6 billion-dollar stand-by arrangement approved in November of 2008. more... (BR)

35 percent decline in services trade deficit in July
The country's services deficit has posted a decline of 35 percent in July, the first month the current fiscal year, mainly due to rise in exports and slowdown in imports. The State Bank on Wednesday said that the country's services sector trade performance was improving as overall services deficit and imports declined by 35.5 percent and 23 percent, respectively, during July of current fiscal year. more... (BR)


Politics

Foreign Minister urges Delhi to stay calm
Foreign Minister Shah Mehmood Qureshi urging India to remain calm stated Wednesday that Pakistan has not rejected 6th Indian dossier. While talking to private TV channel, Qureshi ruled out the allegations of Indian External Minister that Pakistan has rejected latest Indian dossiers. Qureshi said that it is totally false and Pakistan has not turned down dossiers as yet. more... (FD)

Government asks Abraaj to place $361 million in escrow account
The Federal government has asked Abraaj Capital to place 361 million dollars in an escrow account in Pakistan, out of total promised investment of 500 million dollars, official sources told Business Recorder. This was requested at a high level meeting held here on Wednesday called to review and discuss the performance and other related issues of Karachi Electric Supply Company (KESC). more... (BR)


Sector Briefing

Finance directed to release funds for PSO
The Cabinet on Wednesday directed the Finance Ministry to release funds, within next two days, to Pakistan State Oil (PSO) whose Letters of Credit (LCs) for oil import are near to default due to non-payment of dues by power sector. According to sources, the Cabinet took serious notice of poor financial health followed by rising circular debt that was resulting in reduction of profitability of PSO. more... (BR)

Pindori oil output swells to 1,740bpd
The oil production from Pindori field has increased to 1,740 barrels per day (bpd) on account of resumed production from Pindori-4 compared to last week's July average production of 394bpd, reflecting 342 per cent surge in last two months. more... (FD)

Attock Refinery Limited (ARL) starts supplying additional oil to North
As shortage of fuel gets to the alarming levels in the northern areas, Attock Refinery Limited (ARL) has started providing additional 500 tonnes of petrol on daily basis. Sources in Ministry of Oil and Gas told a private television news channel Wednesday that additional supply has commenced from August 24 and will go on till further orders. more... (FD)

DTRE-related issues: proposal under study to set up separate body
The Federal Board of Revenue (FBR) is seriously working on a proposal to establish a separate organisation for Duty and Tax Remission for Export Scheme (DTRE) to exclusively deal with the DRTE- related issues of the registered manufacturers-cum-exporters. more... (BR)

12-month paper yield jumps 22bps
6-month Kibor to consolidate at current level
The T-bill auction held Wednesday witnessed a slight upward revision by 22bps in 12-month cut off yield. The auction result indicated that rates would consolidate on these levels in the next auction as SBP mopped Rs43.2 billion against the target of Rs60 billion however it received bids worth Rs83 billion. more... (FD)

Qamar gives away 438 million OGDC free shares to workers
The Minister for Petroleum and Privatisation, Naveed Qamar, on Wednesday distributed 438 million shares, worth Rs 36 billion, among 10,576 employees of Oil and Gas Development Company Limited (OGDC), free of cost, under the Benazir Employees Stock Option Scheme (BESOS). 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

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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.