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February 08, 2010
Statistics
KSE-100 Index
Previous Index 9,627.63
Current Index 9,769.73
Change % 1.48%
YTD (CY10) 4.08%
YTD (FY10) 36.41%

International Indicators
  Close %age
BSE-30 15,790.93 (2.70)%
HANGSENG 19,665.08 (3.33)%
NIKKEI 255 10,057.09 (2.90)%
FTSE 5,060.92 (1.50)%
DJIA 10,012.23 0.10%
SSEC 2,939.40 (1.87)%
NASDAQ 2,141.12 0.74%

SCRA
Feb 04 , 2010 (3.69)
February, 2010 (2.93)
YTD 283.81

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 12.25%
10 yrs PIB 12.54%

Exchange Rates
Inter-Bank Currency Rates
Rs/EURO 118.79
Rs/UK 136.03
Rs/US 85.04
Rs/OR 218.53

Commodities
Oil $71.35/barrel
Oil Change in % 0.22%
Gold $1,066.00/ounce
Gold Change in % 1.25%

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 30, 2010) Rs4,401bn

NAVs and Returns
as of Feb 06, 2010
Funds Offer Redemption
POBOP 46.7583/- 46.2907/-
Daily Return (96.30)%
POAIIF 50.1929/- 49.6910/-
Daily Return 5.78%
POAIF 52.45/- 51.14/-
Daily Return 3.57%
POASF 57.05/- 55.62/-
Daily Return (3.28)%
POAF 10.6531/-
Daily Return 0.17%
*Daily Returns are calculated as per MUFAP guidelines

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

Expenses up, development spending down
The government has increased current expenditure by Rs 299 billion, reduced development spending by Rs 253 billion for the on-going fiscal year, which economist believe is mainly to meet the expenditure being incurred on war against terrorism, following non-materialisation of pledges by the Friends of Democratic Pakistan (FoDP) more... (BR)

Pakistan on right track: World Bank
The World Bank has committed up to $1.3 billion for Pakistan in the 2009/10 fiscal year and violence in the country will not deter it from continuing its projects, a World Bank official said. Out of new loans committed for this fiscal year, $300 million had been disbursed, Yusupha Crookes, World Bank country director for Pakistan, said in an interview more... (BR)

Basit sees bright prospects of investment by FoDP
Foreign Office spokesman Abdul Basit on Sunday said that investors belonging to Friends of Democratic Pakistan (FoDP) have shown keen interest to invest in certain areas and they would visit the country in near future more... (BR)

Politics

Nato seeks broader ties with Pakistan, China and India
The head of Nato said Sunday that the alliance's troubled mission in Afghanistan shows it is vital to boost ties with nations like China, India and Pakistan. Drawing from flaws exposed in Afghanistan, where Nato is struggling to hold off a Taliban and al Qaeda insurgency, Anders Fogh Rasmussen called for the military alliance to become the hub of a broad global security coalition more... (BR)

India, Pakistan ready to re-launch peace talks
In an ice-breaking session, Foreign Secretary Nirupama Rao and Pakistani High Commissioner to India Shahid Malik met to discuss the possibility of foreign secretary-level talks, indicating that New Delhi is ready to discuss all bilateral issues concerning the two countries. However, the dates for the talks between the two foreign secretaries have not yet been finalised more... (D)

India tests N-capable missile
India successfully tested a nuclear-capable missile on Sunday, a defence ministry spokesman said, days after the government more... (D)

Sector Briefing

Banks' unaudited CARs: reporting time reduced to 18 days
The State Bank of Pakistan has reduced the reporting time of unaudited capital adequacy returns of the banks from 30 days to 18 days. According to BSD Circular Letter No 3, the SBP has decided to change the data submission date of unaudited capital adequacy returns from March 31, 2010 more... (BR)

State Bank grants MCR exemption to 13 banks
The exemption from meeting minimum paid-up capital requirement was provided in view of the economic slowdown more... (D)

IFC to provide $400 million for energy, infrastructure
The International Finance Corporation (IFC) has a target of providing a financing facility upto 400 million dollars to Pakistan during the current year to fund energy and infrastructure projects. This was stated by IFC Manager Infrastructure Advisory Services Moazzam Mekan while talking to media after delivering a presentation on IFC's working at the "special session on Pakistan" on the second day of board of directors meeting of World Federation of Consuls (FICAC) here on Friday 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

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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.