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October 30, 2009
Statistics
KSE-100 Index
Previous Index 9,251.84
Current Index 9,169.00
Change % (0.90)%
YTD (CY09) 56.30%
YTD (FY10) 28.00%

International Indicators
  Close %age
BSE-30 16,052.72 (1.42)%
HANGSENG 21,264.99 (2.28)%
NIKKEI 255 9,891.10 (1.80)%
FTSE 5,137.72 1.10%
DJIA 9,962.58 2.05%
SSEC 3,107.85 1.85%
NASDAQ 2,097.55 1.84%

SCRA
Oct 28 , 2009 13.03
Oct, 2009 90.15
YTD 314.95

Money Market Updates
6m T-bill (Oct 21, 2009) 12.60%
12m T-bill (Oct 21, 2009) 12.61%
3m KIBOR 12.83%
6m KIBOR 12.85%
10 yrs PIB 12.62%

Exchange Rates
Inter-Bank Currency Rates
Rs/EURO 123.11
Rs/UK 136.95
Rs/US 83.75
Rs/OR 217.61

Commodities
Oil $80.10/barrel
Oil Change in % 0.29%
Gold $1,048.60/ounce
Gold Change in % 0.14%

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 24, 2009) 14.43bn
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 24, 2009) Rs4,138bn

NAVs and Returns
as of Oct 29, 2009
Funds Offer Redemption
POBOP 51.4977/- 50.9827/-
Daily Return 11.90%
POAIIF 53.0312/- 52.5009/-
Daily Return 6.31%
POAIF 55.42/- 54.03/-
Daily Return (67.43)%
POASF 56.06/- 54.66/-
Daily Return (159.56)%
POAF 10.3587/-
Daily Return 15.95%
*Daily Returns are calculated as per MUFAP guidelines

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

Growth projected at 2.5-3.5 percent
After presenting poor performance during last fiscal year, Pakistan's economy is showing a gradual recovery and real gross domestic product (GDP) growth is likely to be close to the target of 3.3 percent during the current fiscal year (2009-10), according to the State Bank's Annual Report on State of the Economy for the year 2008-09, released on Thursday more... (BR)

Fiscal year 2010 inflation target would not be achieved
Inflationary pressure is still emerging in the country due to weak fiscal space and rising commodity prices in international market, therefore 9.5 percent annual inflation target for the current fiscal year would not be achieved more... (BR)

LSM sector posts 0.9 percent growth, inflation dips to 10 percent
The large scale manufacturing (LSM) sector registered 0.9 percent growth after a thirteen month period of negative growth and inflation declined to 10 percent by September 2009, which are taken as signs of effective tackling of stagflation that spread optimism within relevant government circles more... (BR)

Politics

Kerry-Lugar law: Nawaz urges Clinton to redress concerns
A meeting between US Secretary of State Hillary Clinton and Pakistan Muslim League-Nawaz (PML-N) Quaid Nawaz Sharif Thursday mainly focused on the controversial Kerry Lugar bill. Pakistan's current political situation and war against terrorism also came under their discussion more... (BR)

No pre-conditions for talks: Singh
Indian Prime Minister Manmohan Singh said in Srinagar on Thursday that there were no pre-conditions for talks with Pakistan but cautioned they could make headway without ‘effective control’ of the terror groups operating across the border more... (D)

'Pakistan squandered chances to kill or capture al Qaeda leaders'
US Secretary of State Hillary Rodham Clinton is suggesting that Pakistan's government has squandered chances to kill or capture al Qaeda leaders. She made the remark in an interview Thursday with journalists during a trip to the city of Lahore. She later flew to the capital, Islamabad, for talks with army chief and additional meetings more... (BR)

Sector Briefing

Third review of economy: IMF seeks details of oil pricing mechanism
The International Monetary Fund (IMF) has sought a presentation on oil pricing mechanism and collection through Petroleum Development Levy (PDL), renamed Petroleum Levy (PL), from 2008-09 till to-date from the government of Pakistan for the third review of Pakistan economy, scheduled to be conducted from November 2-12 in Dubai. Pakistan had collected Rs 104 billion PDL during 2008-09 in an effort to meet the IMF programme targets of revenue generation more... (BR)

Banking spread widened to 7.52 percent
Banking spread has widened to 7.52 percent in FY09 from 6.78 percent a year earlier, with deposit rates relatively rigid in an upward direction, says the State Bank of Pakistan. The SBP Annual Report issued on Thursday, states that in 2008, on average more than 80 percent of advances were disbursed at a lending rate of 12 percent and above, whereas deposit placed on return of 12 percent and above, had only 30.5 percent share in total deposits more... (BR)

OGDCL after tax profit declines
The after tax profit of Oil and Gas Development Company (OGDCL) has declined to Rs 12.065 billion mainly due to huge decline in company's sales in the first quarter (July-September) of FY10 as compared to Rs 18.979 billion earned in the corresponding period in FY09 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.