August 28, 2009
KSE-100 Index
Previous Index 8,319.74
Current Index 8,315.16
Change % (0.06)%
YTD (CY09) 41.78%
YTD (FY10) 16.10%

International Indicators
  Close %age
BSE-30 15,781.07 0.07%
HANGSENG 20,242.75 (1.04)%
NIKKEI 255 10,473.97 (1.56)%
FTSE 4,869.40 (0.43)%
DJIA 9,580.63 0.39%
SSEC 2,967.59 1.78%
NASDAQ Composite 2,027.73 0.16%

Aug 26, 2009 4.464
Aug 2009 45.445
YTD 50.411

Money Market Updates
6m T-bill (Aug 26, 2009) 12.44%
12m T-bill (Aug 26, 2009) 12.42%
3m KIBOR 12.52%
6m KIBOR 12.55%
10 yrs PIB (Aug 27, 2009) 12.38%

Exchange Rates
Inter-Bank Currency Rates
Rs/EURO 118.13
Rs/UK 134.57
Rs/US 82.98
Rs/OR 213.78

Oil $72.61/barrel
Oil Change in % 1.89%
Gold $950.50/ounce
Gold Change in % 0.40%

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 $1,046
Population 167.28mn
US$ Reserves (Aug 22, 2009) 12.85bn
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 22, 2009) Rs.3,973bn

NAVs and Returns
as of Aug 27, 2009
Funds Offer Redemption
POBOP 51.5626/- 51.0470/-
Daily Return 10.45%
POAIIF 52.4243/- 51.9001/-
Daily Return 7.44%
POAIF 54.54/- 53.18/-
Daily Return 41.23%
POASF 54.54/- 53.18/-
Daily Return (20.58)%
POAF 11.09/-
Daily Return 12.80%
*Daily Returns are calculated as per MUFAP guidelines

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

FX reserves shrink 0.84pc to $12.85bn
Country's foreign exchange reserves slipped to $12.85 billion in the week that ended on August 22 as compared with the previous week's figure of $12.96 billion, State Bank of Pakistan (SBP) said Thursday. The SBP's reserves fell to $9.36 billion from $9.47 billion a week earlier, while reserves held by commercial banks were unchanged at $3.49 billion, the SBP said. more... (FD)

IMF to review RPPs contracts: Prime Minister
Prime Minister Yousuf Raza Gilani said that rental power plants (RPPs) are the only way out to resolve the prevailing energy crisis. International Monetary Fund (IMF) will review their contracts as third party. Present government is making all out efforts to bring country out of the present energy crisis and the RPPs are best solution to this problem. more... (BR)

Guddu combined-cycle power plant: ECC clearance must for MoF to extend guarantee for credit facility
The Economic Co-ordination Committee (ECC) has directed the Ministry of Finance (MoF) not to extend guarantee for credit facility for 700-800 MW combined cycle power plant at Guddu until and unless the Pakistan Electric Power Company (Pepco) seeks clearance of financial terms and conditions from it, well-informed sources told Business Recorder on Thursday. more... (BR)

ECC body for uniform price of local and imported LPG
The Sub-Committee, formed by Economic Co-ordination Committee (ECC) of the Cabinet, headed by the Chairman of Federal Board of Revenue (FBR), has recommended fixing price of locally produced liquefied petroleum gas (LPG) at import parity to provide level playing field for the importers. This step will result in uniform price of locally produced and imported LPG, ensuring price stability in the country. more... (BR)


PML-N seeking treason case against Musharraf: Supreme Court Registrar returns petition with objections
The Registrar of the Supreme Court on Thursday returned a petition with irremovable objections filed by PML-N Senator Zafar Ali Shah seeking a court order for the government to initiate criminal proceedings under treason charges against former President Pervez Musharraf. more... (BR)

Zardari and Altaf meet in London
President Asif Ali Zardari and Muttahida Qaumi Movement chief Altaf Hussain held a meeting in London and discussed the issues of mutual interest, Aaj News reported late Thursday night. In the meeting the two leaders discussed the overall political situation in the country and exchanged views over the issues of common interest. more... (BR)

Resource distribution: vertical and horizontal criteria to be discussed today
The provinces will be briefed by the Federal government on availability of resources in the National Finance Commission (NFC) meeting on Friday and subsequently the criterion for resource distribution between the centre and the provinces, and the criterian among the federating units would be discussed, said Finance Minister Shaukat Tarin. more... (BR)

Admin expenses to eat half of United States aid: Tareen
Half of the planned assistance pledged by the US to Pakistan is likely to be wastefully spent on administrative costs, Federal Minister for Finance and Economic Affairs, Shaukat Tareen said Thursday. Tareen urged the US to channel its assistance through Pakistani agencies to save on high intermediation costs incurred by the US counterparts. more... (FD)

Federation and provinces agree to take up non-NFC issues
The federation and provinces on Thursday agreed to include non-NFC issues in the Term of References (ToR) for discussion in the upcoming National Finance Commission meetings. Talking to media after the first day meeting of the NFC, Haji Adeel who is representing the NWFP as private member said he was more than satisfied with the outcome of the first meeting. more... (BR)

Sector Briefing

Meeting on circular debt today: Ample liquidity to absorb Rs100bn TFCs
As banks have ample liquidity to absorb the proposed government bonds to eliminate the circular debt, a crucial meeting between banks and government officials would be held on Friday, said the industry sources. more... (D)

PSO signs MoU for LPG retail network
Pakistan State Oil and Associated Group, an LPG producer, has signed a memorandum of understanding (MoU) for developing a sustainable LPG auto- gas market. more... (D)

PSMC posts historic loss of Rs 22 billion
The country's single largest steel producer - Pakistan Steel Mills Corporation (PSMC) has posted historical loss of over Rs 22 billion in FY09 - first time in nine years due to ineffective policies, non technical management and global economic recession, Business Recorder learnt on Thursday. The government owned PSMC was a profitable organisation till FY08 as it was enjoying good profits since FY01, however it has been suffering massive losses since then. more... (BR)

Atlas Bank gets extension to meet MCR
The State Bank of Pakistan on Thursday granted Atlas Bank Ltd an extension till Nov 30 to meet the minimum capital requirement and capital adequacy ratio. more... (D)

ICI declares 35pc interim dividend
Board of Directors of ICI Pakistan approved Thursday distribution of 35 per cent interim dividend for its shareholders, translating into a payout of approximately Rs486 million, along with its financial results for the second quarter of the Calendar Year 2009 (2QCY09). more... (FD)

Standard & Poor (S&P) promotes Mobilink to B-minus: Uptick reflects company’s funding profile improved
Standard & Poor's Ratings Services said on Thursday it raised its long-term corporate credit rating of Pakistan-based wireless service provider Pakistan Mobile Communications Ltd (Mobilink) to 'B-' from 'CCC+'. The outlook is stable. At the same time, S&P raised its issue rating on the company's $112.2 million senior unsecured notes due 2013 to 'B-' from 'CCC+'. more... (FD)

Failure to deduct/deposit WHT: proceedings against withholding agents begin
The Federal Board of Revenue (FBR) has initiated penalty proceedings against a large number of the withholding agents, who failed to deduct and deposit the withholding tax from prize bonds winners, non-resident media persons, brokerage/commission and other priority areas. In this connection, the FBR has dispatched a list of priority areas to the field formations to verify deduction of tax under the enforcement plan. 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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