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October 22, 2009
Statistics
KSE-100 Index
Previous Index 9,569.07
Current Index 9,247.79
Change % (3.36)%
YTD (CY09) 57.70%
YTD (FY10) 29.10%

International Indicators
  Close %age
BSE-30 17,009.17 (1.24)%
HANGSENG 22,318.11 (0.30)%
NIKKEI 255 10,333.39 (0.03)%
FTSE 5,257.85 0.28%
DJIA 9,949.36 (0.92)%
SSEC 3,070.59 (0.45)%
NASDAQ 2,150.73 (0.59)%

SCRA
Oct 20 , 2009 2.76
Oct, 2009 81.22
YTD 306.03

Money Market Updates
6m T-bill (Oct 21, 2009) 12.60%
12m T-bill (Oct 21, 2009) 12.61%
3m KIBOR 12.62%
6m KIBOR 12.66%
10 yrs PIB 12.62%

Exchange Rates
Inter-Bank Currency Rates
Rs/EURO 124.35
Rs/UK 136.53
Rs/US 83.40
Rs/OR 217.48

Commodities
Oil $81.03/barrel
Oil Change in % (0.42)%
Gold $1,059.10/ounce
Gold Change in % (0.51)%

Inflation
CPI Gen. - YoY (Sep 09) 10.10%
CPI Gen. - FY10 (Jul -Sep 09) 10.70%
NFNE Core INFL - YoY (Sep 09) 11.90%
NFNE Core INFL - FY10 (Jul-Sep 09) 12.90%

Economic Indicators
GDP Growth FY10E 2.00%
Per Capita Income $1,046
Population 167.63mn
US$ Reserves (Oct 10, 2009) 14.46bn
Trade Deficit (Sep 09) $(3.09)bn
Curr. A/C (Sep 09) $(462)mn
Remittances (Jul -Sep 09) $2.33bn
Foreign Investment (Jul -Sep-09) $671.1mn
All Sch. Banks Deposit Base (Oct 10, 2009) Rs4,133bn

NAVs and Returns
as of Oct 21, 2009
Funds Offer Redemption
POBOP 51.4032/- 50.8892/-
Daily Return 9.85%
POAIIF 52.9478/- 52.4183/-
Daily Return 7.66%
POAIF 55.24/- 53.86/-
Daily Return (222.27)%
POASF 56.07/- 54.67/-
Daily Return (232.19)%
POAF 10.3253/-
Daily Return 13.57%
*Daily Returns are calculated as per MUFAP guidelines

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

89 percent decline in first quarter current account deficit
Pakistan's current account deficit posted a decline of 89 percent in the first quarter of the current fiscal year, mainly due to higher home remittances and sharp decline in trade deficit. "Massive decrease in the current account deficit has occurred due to rising home remittances sent by overseas Pakistanis, decline in imports and trade deficit, besides aggressive performance of services sector," analysts said more... (BR)

Treasury bills auction: SBP receives Rs 62.398 billion bids
The State Bank of Pakistan has conducted its second T/bills auction of the second quarter of fiscal year 2009-10. The auction target for Q2 is Rs 145 billion and in its first T/bills auction of this quarter SBP could raise RS 23.392 billion, which includes non-competitive bids, against its target of Rs 30 billion more... (BR)

No negative impact on IP gas pipeline deal: foreign office
Pakistan authorities believe that the recent terrorist attack in Iran's Sistan-Baluchistan province will not negatively affect the Iran-Pakistan (IP) gas pipeline deal. A suicide bomber last Sunday set off an explosive device at a meeting of the elite Republican Guard commanders and tribal chiefs in the city of Pishin, and Iranian authorities pointed the finger of blame at Pakistan, US and UK more... (BR)

Politics

Cabinet clears US aid bill: 100 percent hike in postal rates approved
The Cabinet on Wednesday formally cleared the much-debated Kerry-Lugar Bill (KLB), along with an explanatory note, and allowed 100 percent increase in inland postal tariff from November 1, 2009. Prime Minister Yousaf Raza Gilani, who presided over the meeting, said that the United States (US) has adopted 'Enhanced Partnership Act with Pakistan Bill, 2009', better known as the Kerry-Lugar Bill more... (BR)

India behind most terror attacks, says Malik
‘We have solid evidence that not only in Balochistan but India is involved in almost every terrorist activity in Pakistan.’ more... (D)

Al Qaeda remains a threat to US, says Napolitano
The militant group Al Qaeda remains a threat to the United States even though its leaders have been cornered in remote parts of Pakistan and Afghanistan, US Homeland Security Secretary Janet Napolitano said on Monday more... (D)

Sector Briefing

Banks' profits to rise with 40 percent FSV on NPLs
Banks' and DFIs' profits are likely to witness a significant increase of some 10-12 percent in 2009 with the State Bank's move to allow them to avail 40 percent benefit of Forced Sale Value (FSV) of collateral for calculating provisioning requirement, industry sources said more... (BR)

Auto makers unveil cautious production plans
Most manufacturers are now opting for ‘very realistic production plans’ rather than optimistic ones more... (D)

Gas supply to four plants in peak winter season: MoP turns down request
The Ministry of Petroleum and Natural Resources has turned down the request of the Ministry of Water and Power to provide gas to TPS Muzafargarh, GTPS Faisalabad and two rental power plants--at Sheikhupura and Bhikki--due to gas load shedding, and requested Wapda and Pepco to make alternative fuel arrangements to operate these plants during peak winter season 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
  Imran Altaf
Research Analyst
Faizan Ahmed
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.