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September 03, 2009
Statistics
KSE-100 Index
Previous Index 8,769.24
Current Index 8,878.64
Change % 1.25%
YTD (CY09) 51.38%
YTD (FY10) 23.97%

International Indicators
  Close %age
BSE-30 15,467.46 (0.54)%
HANGSENG 19,522.00 (1.76)%
NIKKEI 255 10,280.46 (2.37)%
FTSE 4,817.50 (0.05)%
DJIA 9,280.67 (0.32)%
SSEC 2,683.72 0.60%
NASDAQ Composite 1,967.07 (0.09)%

SCRA
Sept 01, 2009 11.684
Sept 2009 11.684
YTD 82.735

Money Market Updates
6m T-bill (Aug 26, 2009) 12.44%
12m T-bill (Aug 26, 2009) 12.42%
3m KIBOR 12.54%
6m KIBOR 12.55%
10 yrs PIB 12.39%

Exchange Rates
Inter-Bank Currency Rates
Rs/EURO 118.01
Rs/UK 134.13
Rs/US 83.00
Rs/OR 213.42

Commodities
Oil $68.17/barrel
Oil Change in % (0.47)%
Gold $976.90/ounce
Gold Change in % 2.28%

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 $1,046
Population 167.33mn
US$ 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 29, 2009) Rs.4,115bn

NAVs and Returns
as of Sept 02, 2009
Funds Offer Redemption
POBOP 51.6449/- 51.1285/-
Daily Return 10.35%
POAIIF 52.4930/- 51.9681/-
Daily Return 7.88%
POAIF 54.84/- 53.47/-
Daily Return (27.28)%
POASF 54.96/- 53.59/-
Daily Return 13.63%
POAF 11.11/-
Daily Return 12.82%
*Daily Returns are calculated as per MUFAP guidelines

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

Economy showing signs of recovery: interview with IMF official
Pakistan's economy is showing signs of recover - its remittances are up despite global downturn, local economy is stabilising and global trends are showing signs of improvement, foreign portfolio investment is improving and electricity problems would be mostly over by next year, said an IMF official in an exclusive interview with Business Recorder. more... (BR)

Govt issues Rs10bn to reduce circular debt
Government has issued Rs10 billion to help Pakistan State Oil (PSO) fight the issue of circular debt, a private television news channel quoted sources in Finance Ministry as saying Wednesday. As per the break up of the amount, Rs3 billion have been released for Kot Addu Power Company (KAPCO), Rs5 billion for Pakistan Electric Power Company (Private) Limited (PEPCO), and Rs2 billion issued for Hub Power Company Limited (HUBCO). more... (FD)

FY09 budget deficit at 5.2pc of GDP
Government is facing torrid times on several fronts and due to this fact its performance has been affected tremendously as economic targets are going out of its reach. According to data posted on the website of Ministry of Finance and Economic Affairs Wednesday, the country's budget deficit for the Financial Year 2008-09 (FY09) was 5.2 per cent of gross domestic product (GDP), which is on the higher side as against the government-set target. more... (FD)

Asian Development Bank (ADB), Pakistan in $230mn loan deal
Government of Pakistan and Asian Development Bank (ADB) on Wednesday signed the 2nd tranche of Program Loan Agreement amounting to $230 million in respect of National Highway Sector Development Program. The loan agreement was signed here in Economic Affairs Division (EAD) by Farrukh Qayyum, Secretary EAD as government's representative and Rune Stroem, Country Director ADB, Islamabad. more... (FD)


Politics

Jeddah visit not personal, says Musharraf
Former president Pervez Musharraf has said that he held talks with Saudi King Abdullah Bin Abdul Aziz for the sake of the country and not for seeking any personal favours. Former president and Saudi King Abdullah Bin Abdul Aziz held an important meeting in Jeddah and discussed ambit of issue. more... (FD)

Sharif says ‘N’ against undemocratic manoeuvers
Pakistan Muslim League-N Chief Nawaz Sharif said Wednesday that his party would not be involved in any undemocratic practices to dethrone Pakistan Peoples Party government. Talking to media in Lahore, the former prime minister said change of governments is no longer a solution for the crisis facing the country. more... (FD)

Saudi Arabia should not be dragged into politics: Nawaz
Without naming any particular political party or group, Pakistan Muslim League-Nawaz Quaid Mohammad Nawaz Sharif on Wednesday suggested that Saudi Arabia should not be dragged into Pakistan's politics. Responding to queries of media men about the visit of former President Pervez Musharraf to Saudi Arabia, Nawaz replied, "I am not aware for which purpose Musharraf had gone to Jeddah." more... (BR)

48-hour ultimatum withdrawn
Pakistan Muslim League (PML-N) called off the 48-hour ultimatum it had given to Pakistan Peoples' Party (PPP), but stands by its demand for restoration of the constitution and trial of former President Pervez Musharraf. Talking to a private TV channel, PML-N spokesman Siddiqul Farooq said after President Asif Zardari's clarification and Prime Minister's contact with Shahbaz Sharif, the ultimatum expired itself. more... (BR)

Prime Minister strongly supports RPPs
Prime Minister Yousuf Raza Gilani is reported to have expressed concern during Cabinet meeting on August 26, 2009 that the government would not be sustainable after December 31 if power shortage was not bridged through installation of rental power plants (RPPs), sources told Business Recorder. more... (BR)


Sector Briefing

Fuel supplies to IPPs: PSO needs Rs 158 billion by October 31 to avoid L/Cs' default
The cash starved Oil Marketing Company (OMC), Pakistan State Oil (PSO), has warned the Ministry of Finance (MoF) that its letter of credits (L/Cs) for oil import will default if the ministry did not arrange Rs 158 billion by October 31 to maintain fuel supplies to power sector. more... (BR)

Cement price up Rs40/bag
The price of cement rose to Rs40 per bag in NWFP and Punjab during last two days. According to sources in cement industry, price of a cement bag rose to Rs30 in Punjab and Frontier on August 31 followed by ex-factory price Rs250 per bag. However, now ex-factory price of a cement bag is Rs260 after increment of Rs10 on Sept 1. more... (FD)

Kapco FY09 net may dip 27.1pc
The after-tax earnings of Kot Addu Power Company Limited (KAPCO) - country's largest independent power producer - is likely to show a decline of 27.1 per cent to Rs5.81 billion (EPS: Rs6.6for the fiscal year 2008-09, an analysis conducted by The Financial Daily (TFD) Research revealed Wednesday. more... (FD)

Textiles to get markup rate support
Relief on long-term loans
The federal government issued Wednesday a notification to financially support the textile sector by providing relief on long-term loans. The government issued an order by making changes in Item 29A of Schedule II of its Rules of Business of 1973. more... (FD)


(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.