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January 22, 2010
Statistics
KSE-100 Index
Previous Index 9,904.74
Current Index 9,753.84
Change % (1.52)%
YTD (CY10) 3.90%
YTD (FY10) 36.20%

International Indicators
  Close %age
BSE-30 17,051.14 (2.42)%
HANGSENG 20,862.67 (1.99)%
NIKKEI 255 10,868.41 1.20%
FTSE 5,335.10 (1.60)%
DJIA 10,389.88 (2.01)%
SSEC 3,158.86 (2.71)%
NASDAQ 2,265.70 (1.12)%

SCRA
Jan 20, 2010 0.45
January, 2010 16.49
YTD 286.49

Money Market Updates
6m T-bill (Jan 14, 2010) 12.05%
12m T-bill (Jan 14, 2010) 12.05%
3m KIBOR 12.20%
6m KIBOR 12.25%
10 yrs PIB 12.61%

Exchange Rates
Inter-Bank Currency Rates
Rs/EURO 119.24
Rs/UK 137.62
Rs/US 84.64
Rs/OR 216.09

Commodities
Oil $75.87/barrel
Oil Change in % (0.28)%
Gold $1,092.40/ounce
Gold Change in % (0.98)%

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 16, 2010) 15.24bn
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 21, 2010
Funds Offer Redemption
POBOP 48.0015/- 47.5215/-
Daily Return 9.74%
POAIIF 50.0166/- 49.5164/-
Daily Return 3.22%
POAIF 52.72/- 51.40/-
Daily Return (267.86)%
POASF 57.29/- 55.86/-
Daily Return (387.89)%
POAF 10.6222/-
Daily Return 11.24%
*Daily Returns are calculated as per MUFAP guidelines

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

Ecnec approves 28 projects worth Rs 265.4 billion
The Executive Committee of the National Economic Council (Ecnec) on Thursday approved 28 projects costing Rs 265.4 billion with foreign exchange component (FEC) of Rs 37.72 billion. Ecnec met under the chairmanship of Federal Minister for Finance, Shaukat Tarin at the Prime Minister's Secretariat. The meeting was attended by the federal ministers and secretaries of the economic ministries and provincial representatives more... (BR)

Swapping Rs 15 billion tax refund liability with banks: FBR to issue investment bonds
The Federal Board of Revenue is going to issue investment bonds to banks to swap tax refund liability of around Rs 15 billion. Sources told Business Recorder on Thursday that the modalities in this regard are being finalised as Pakistan Banks Association (PBA) has accepted the proposal. Sources said the Large Taxpayers Unit (LTU) has been directed to determine the total tax refund liability of the financial institutions for the purpose more... (BR)

World Bank says investors taking out their money
The World Bank has observed that the investors are taking out their money from Pakistan leaving the economy in dire straits due to continuous increase in domestic and external imbalances. According to the WB report, "Global Economic Prospects-2010" issued here on Thursday, the region experienced significant capital outflows at the onset of the crisis, particularly in Pakistan and Sri Lanka, where outflows were driven by investor concerns about rising domestic and external imbalances more... (BR)

Politics

Supreme Court seeks details about Pakistanis handed over to US
The Supreme Court on Thursday directed the government to furnish complete details of Pakistanis handed over to US during Musharraf's regime, including those detained in other countries and observed that the court would exercise all its powers being within the ambit of the constitution to recover the missing persons more... (BR)

No new offensive for 6-12 months: ISPR
The army said Thursday during a visit by US Defence Secretary Robert Gates that it can't launch any new offensives against militants for six months to a year to give it time to stabilise existing gains. The announcement probably comes as a disappointment to the US, which has pushed Pakistan to expand its military operations to target militants staging cross-border attacks against coalition troops in Afghanistan more... (BR)

Gilani meets Shujaat
Prime Minister Syed Yousuf Raza Gilani on Thursday said the government would continue pursuing the policy of reconciliation and will take all the political forces on board on issues of national importance. The Prime Minister stated this in a meeting with PML President Chaudhry Shujat Hussain more... (BR)

Sector Briefing

Finance Ministry releases Rs nine billion to PSO
Finance Ministry has released Rs 9 billion to Pakistan State Oil (PSO) to clear the dues of oil refineries and mature Letter of Credits (L/Cs) for oil import, Business Recorder learnt on Thursday. Sources told Business Recorder that oil refineries and Oil Marketing Companies (OMCs) had raised the issue of circular debt in a recent meeting held at the Petroleum Ministry more... (BR)

ADB and IFC to acquire 1.3 billion ordinary shares of KESC
The Asian Development Bank (ADB) and International Finance Corporation (IFC) are going to acquire 1.3 billion ordinary shares of Karachi Electric Supply Company (KESC), worth 50 million dollars. The company has offered 1.3 billion ordinary shares to ADB and IFC, at a price of not less than Rs 3.50 per share, which will be pari passu in every respect with the existing capital of the company more... (BR)

Exploration rights of six blocks granted to OGDCL, PPL and POL
The government has granted exploration rights of six blocks to Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Pakistan Oil Field (POL) while these entities have made minimum firm work commitment of $25.42 million. The blocks located in Balochistan, Sindh and Punjab provinces 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
Abdul Majid Butt
Research Analyst
Rafey Ahmed Research Analyst Faiz Malik
Database Manager

Separator

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.