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February 02, 2010
Statistics
KSE-100 Index
Previous Index 9,614.19
Current Index 9,591.51
Change % (0.24)%
YTD (CY10) 2.18%
YTD (FY10) 33.92%

International Indicators
  Close %age
BSE-30 16,356.03 (0.01)%
HANGSENG 20,243.75 0.61%
NIKKEI 255 10,205.02 0.07%
FTSE 5,247.41 1.10%
DJIA 10,185.53 1.17%
SSEC 2,941.36 (1.60)%
NASDAQ 2,171.60 1.11%

SCRA
Jan 29, 2010 2.22
January, 2010 16.74
YTD 286.74

Money Market Updates
6m T-bill 27-Jan-10 11.897%
12m T-bill 27-Jan-10 12.015%
3m KIBOR 12.21%
6m KIBOR 12.26%
10 yrs PIB 12.49%

Exchange Rates
Inter-Bank Currency Rates
Rs/EURO 118.17
Rs/UK 135.83
Rs/US 85.15
Rs/OR 218.87

Commodities
Oil $74.75/barrel
Oil Change in % 0.43%
Gold $1,104.60/ounce
Gold Change in % (0.04)%

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 23, 2010) 15.10bn
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 23, 2010) Rs4,363bn

NAVs and Returns
as of Feb 01, 2010
Funds Offer Redemption
POBOP 47.6787/- 47.2019/-
Daily Return 9.73%
POAIIF 50.1543/- 49.6528/-
Daily Return 5.71%
POAIF 52.64/- 51.32/-
Daily Return (67.32)%
POASF 56.78/- 55.36/-
Daily Return (85.31)%
POAF 10.6603/-
Daily Return 11.39%
*Daily Returns are calculated as per MUFAP guidelines

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

Pool of national savings must be expanded: Finance issues Fiscal Policy Statement
Ministry of Finance has observed that the goals of increased revenue generation and targeted budgetary investment must be brought in line with the monetary policy objectives. The Fiscal Policy Statement (2009-10), issued by the Finance Ministry here on Monday, said that the pool of national savings must be enhanced, allowing for required investment to be made, without jeopardising the government's fiscal benchmarks more... (BR)

PC against Finance bid to cut PSDP federal component
The Planning Commission has opposed Finance Ministry's proposal to reduce federal component of Public Sector Development Programme (PSDP) 2009-10 from Rs 446 billion to Rs 250 billion due to poor inflow from Friends of Democratic Pakistan (FoDP), Business Recorder has learnt more... (BR)

Concern over declining Tax-to-GDP ratio
The Ministry of Finance has noted with concern that the declining tax-to-GDP ratio is an alarm bell for the economic managers and needs to be addressed with all might, if the government is vying to generate higher revenue in the future broadening the tax base more... (BR)

Politics

Obama proposes $1.2 billion to aid Pakistani military
US President Barack Obama on Monday proposed a half-billion-dollar increase in funding next year to help train and equip Pakistani security forces to fight militants and also asked for a big hike in economic aid for Islamabad. The proposed increases in Obama's budget reflects Washington's attempt at long-term stabilisation of Pakistan more... (BR)

Pakistan wants a peaceful, stable Afghanistan: Kayani
General Ashfaq Parvez Kayani, Chief of Army Staff (CoAS), has reiterated that Pakistan wants a peaceful, stable and friendly Afghanistan. "We cannot wish for Afghanistan anything that we don't wish for Pakistan". "Our operation in 2009 has helped in improving Afghan situation squeezing spaces with better control of areas and continuous logistic flow", General Kayani said on Monday more... (BR)

Agreement on AdministratorsSindh House passes Amended Land Acquisition Bill
MQM leaders meet Zardari; consensus reached on issues
Pakistan Peoples Party (PPP) and Muttahida Qaumi Movement (MQM) agreed Monday on appointing non-political administrators. The decision to this effect was made in the core committees meeting of PPP and MQM held in Bilawal House under the chair of President Asif Ali Zardari more... (FD)

Sector Briefing

Hubco surviving on 3-day fuel oil stock
The giant 1,200MW independent power project has run short of fuel stocks due to inter-corporate circular debt more... (D)

Increase cash reserve ratio now
A Monetary Policy Statement is widely perceived as a pre-emptive move by the central bank. It could either be quantitative or qualitative for easing or tightening purposes by effectively using cash reserve ratio (CRR), statutory liquidity ratio (SLR) and repo to sell securities or reverse repo to purchase securities. In recent times, it has been observed that the business community in Pakistan is more inclined towards MPS announcement than the fiscal announcements more... (BR)

SECP moves to revamp insurance sector
The Securities and Exchange Commission of Pakistan said on Monday that a large number of insurance companies were not being managed in a sound more... (D)

(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.