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January 20, 2010
Statistics
KSE-100 Index
Previous Index 9,895.46
Current Index 9,954.41
Change % 0.60%
YTD (CY10) 6.00%
YTD (FY10) 39.00%

International Indicators
  Close %age
BSE-30 17,464.56 (1.00)%
HANGSENG 21,677.98 1.02%
NIKKEI 255 10,764.90 (0.80)%
FTSE 5,513.14 0.30%
DJIA 10,725.43 1.09%
SSEC 3,246.87 0.30%
NASDAQ 2,320.40 1.42%

SCRA
Jan 18, 2010 0.92
January, 2010 13.40
YTD 283.41

Money Market Updates
6m T-bill (Jan 14, 2010) 12.05%
12m T-bill (Jan 14, 2010) 12.05%
3m KIBOR 12.23%
6m KIBOR 12.30%
10 yrs PIB 12.61%

Exchange Rates
Inter-Bank Currency Rates
Rs/EURO 121.67
Rs/UK 138.77
Rs/US 84.57
Rs/OR 216.26

Commodities
Oil $78.29/barrel
Oil Change in % (0.92)%
Gold $1,133.30/ounce
Gold Change in % (0.59)%

Inflation
CPI Gen. - YoY (Dec 09) 10.50%
CPI Gen. - FY10 (Jul -Dec 09) 10.30%
NFNE Core INFL - YoY (Dec 09) 10.70%
NFNE Core INFL - FY10 (Jul-Dec 09) 11.80%

Economic Indicators
GDP Growth FY10E 2.00%
Per Capita Income $1,046
Population 168.20mn
US$ Reserves (Jan 09, 2010) 15.20bn
Trade Balance (Jul-Dec 09) $(6.80)bn
Curr. A/C (Jul-Dec- 09) $(1.76)bn
Remittances (Jul -Dec 09) $4.53bn
Foreign Investment (Jul -Dec-09) $1.28bn
All Sch. Banks Deposit Base (Jan 09, 2010) Rs4,351bn

NAVs and Returns
as of Jan 20, 2010
Funds Offer Redemption
POBOP 47.9772/- 47.4974/-
Daily Return 9.75%
POAIIF 50.0023/- 49.5023/-
Daily Return 7.57%
POAIF 53.33/- 52.00/-
Daily Return (174.64)%
POASF 58.24/- 56.78/-
Daily Return (89.78)%
POAF 10.6158/-
Daily Return (6.97)%
*Daily Returns are calculated as per MUFAP guidelines

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

Current account deficit up
The country's current account deficit posted an increase of 130 percent during the second quarter of the current fiscal year, as compared to first quarter, mainly due to rising trade and income deficits. Witnessing massive decline in the first quarter of fiscal year 2009-10, the country's current account deficit is again on surge in the second quarter of current fiscal due to slow goods and services exports, while increasing deficits of services and income have also contributed some share in current account deficit more... (BR)

Govt to divest another 80 SOEs
Privatisation Minister Waqar Ahmad on Tuesday said that another 80 state-owned enterprises (SOEs) would be privatised after improving their more... (D)

Provinces allowed to issue bonds
In a major policy shift, the federal government has allowed the cash-hungry provinces to issue bonds to raise funds directly, after due consultation with the Economic Affairs Division (EAD) and the State Bank of Pakistan (SBP), official sources told Business Recorder. This decision is meant to give independence to the provinces which are unwilling to accept conditions of lending imposed by the federal government more... (BR)

Politics

Supreme Court cites Marcos as reference: detailed judgement in NRO case released
The Supreme Court on Tuesday issued detailed judgement on the National Reconciliation Ordinance (NRO) of 2007 promulgated by former President Pervaiz Musharraf and held that unbridled powers to amend the Constitution cannot be given to the Chief Executive even during the transitional period and even on the touchstone of 'State necessity' more... (BR)

US seeks stability between India and Pakistan
The United States would like to help India and Pakistan focus less on each other and more on the terrorism threat, but the two countries prefer to settle their differences themselves, US Defence Secretary Robert Gates said Tuesday. "We're always interested in that," Gates said as he flew to New Delhi for talks Tuesday and Wednesday with India's prime minister, defence chief and other officials more... (BR)

Ali Nawaz to replace Qaim as PPP Sindh President
The Pakistan People’s Party (PPP) has decided to place Provincial Minister Ali Nawaz Shah as the party president in Sindh. According to sources, PPP Sindh’s current President and Chief Minister Syed Qaim Ali Shah is in Saudi Arab to perform Umrah along with Ali Nawaz Shah. The other office bearers of the party have been informed of the decision more... (FD)

Sector Briefing

Refineries, OMCs reject 'sliding margin' formula: oil pricing issue reverts to expert committee
After rejection of oil pricing formula based on 'sliding margin' by oil refineries and oil marketing companies (OMCs), the expert committee on oil pricing has reverted back to the oil industry to furnish proposals for modifying the existing pricing mechanism within three days more... (BR)

Manzlai-4 gas well opened
The Khattak Qaumi Ittehad (KQI), District Karak, has opened Manzlai-4 Bakha Banda Reg Gas Well (M-4) on the request of Provincial Minister for Information, Transport and Inter-Provincial Co-ordination Iftikhar Hussain. Iftikhar is also chairman of the special committee formed by the provincial government regarding oil & gas issues in district Karak. Representatives of KQI also assured their full support to the provincial government in this regard more... (BR)

DAP prices increase by Rs290/50kg
Following increase in international DAP prices, the local prices of the fertiliser have surged by Rs290 per 50kg bag. According to details, 50kg bag of DAP fertiliser costs Rs2,200 after this latest increase 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
  Imran Altaf
Research Analyst
Abdul 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.