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February 23, 2010
Statistics
KSE-100 Index
Previous Index 9,902.62
Current Index 9,953.07
Change % 0.51%
YTD (CY10) 6.03%
YTD (FY10) 38.97%

International Indicators
  Close %age
BSE-30 16,237.05 0.28%
HANGSENG 20,377.27 2.43%
NIKKEI 255 10,400.47 2.70%
FTSE 5,352.07 (0.10)%
DJIA 10,383.38 (0.18)%
SSEC 3,003.40 (0.49)%
NASDAQ 2,242.03 (0.08)%

SCRA
Feb 19 , 2010 6.65
February, 2010 9.30
YTD 296.04

Money Market Updates
6m T-bill 10-Feb-10 12.02%
12m T-bill 10-Feb-10 12.05%
3m KIBOR 12.34%
6m KIBOR 12.38%
10 yrs PIB 12.54%

Exchange Rates
Inter-Bank Currency Rates
Rs/EURO 116.11
Rs/UK 131.76
Rs/US 85.10
Rs/OR 217.49

Commodities
Oil $80.02/barrel
Oil Change in % (0.36)%
Gold $1,117.50/ounce
Gold Change in % 0.40%

Inflation
CPI Gen. - YoY (Jan 10) 13.70%
CPI Gen. - FY10 (Jul -09-Jan 10) 10.80%
NFNE Core INFL - YoY (Jan-10) 10.30%
NFNE Core INFL - FY10 (Jul-09-Jan-10) 11.60%

Economic Indicators
GDP Growth FY10E 2.00%
Per Capita Income $1,046
Population 168.20mn
US$ Reserves (Feb 13, 2010) 14.32bn
Trade Balance (Jul-Jan 10) $(8.44)bn
Curr. A/C (Jul-Jan-10) $(2.49)bn
Remittances (Jul -Jan 10) $5.20bn
Foreign Investment (Jul -Jan-10) $1.47bn
All Sch. Banks Deposit Base (Feb 13, 2010) Rs4,371bn

NAVs and Returns
as of Feb 22, 2010
Funds Offer Redemption
POBOP 46.4393/- 45.9749/-
Daily Return 8.01%
POAIIF 50.3366/- 49.8332/-
Daily Return 7.40%
POAIF 52.58/- 51.27/-
Daily Return 17.82%
POASF 57.24/- 55.81/-
Daily Return 36.04%
POAF 10.6950/-
Daily Return 11.54%
*Daily Returns are calculated as per MUFAP guidelines

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

Government and KSE reach accord on CGT: tax to be charged on two types of holdings
The government has decided to impose Capital Gain Tax on purchase of securities, to be charged on two types of holdings at the rate of 7.5 percent and 10 percent, with effect from July 1, 2010. It was decided at a meeting on Monday that the CGT will be charged on two types of holdings, at the initial rate of 10 percent for first two years, where the holding period is less than six months and @7.5 percent where the holding period exceeds six months but is less than 12 months more... (BR)

Chinese to invest $50bn in Punjab
The Chinese will invest $50 billion in Punjab during the next 10 years.The objective of the investment is to build a state-of-the-art industrial city, along with an industrial estate on 100,000 acres more... (D)

Pakistan ranks 144th in UNDP's human development index
Pakistan ranks 144th in UNDP's Human Development Index (HDI), out of total 178 countries. According to UNDP's HDI report, Pakistan faces enormous challenges, including poverty, poor healthcare facilities, illiteracy and a continuously soaring population more... (BR)

Politics

Nawaz calls for limit to presidential powers
Country's main opposition leader reiterated on Monday a call for the transfer of presidential powers to the prime minister and parliament, highlighting an issue that could bring political turmoil. Nawaz called again on Monday for the full implementation of the charter in talks with Prime Minister Yousuf Raza Gilani more... (BR)

India for 'meaningful' ties with Pakistan if terrorism ends
India seeks a "meaningful relationship" with Pakistan if Islamabad curbs terrorist groups, President Pratibha Patil said Monday ahead of the first official talks between the neighbours following the 2008 Mumbai attacks. Foreign Secretary Nirupama Rao and her Pakistani counterpart Salman Bashir are to meet in New Delhi on Thursday more... (BR)

Naseem Beg, Dr Ishrat, Makhdoom Shahab possible replacements
Rumours of resignation by Federal Minister for Finance and Economic Affairs, Shaukat Tarin are turning into reality with each passing day as the Prime Minister Syed Yousuf Raza Gilani in an informal discussion has revealed that Tarin is parting his ways with the government more... (FD)

Sector Briefing

OGDC discovers hydrocarbon reserves in Shah Well No 1
Oil & Gas Development Company (OGDC) has discovered sizeable reserves of hydrocarbon from its exploratory Shah well No 1, located in district Hyderabad. According to the communiqué to KSE here Monday, the well was drilled down to the depth of 3,227 meters, targeted to test the hydrocarbon potential of massive sands formation more... (BR)

FFBL to diversify into energy projects
The Fauji Fertiliser Bin Qasim Limited (FFBL) proposes to invest Rs5 billion in four associated undertakings, with a view to diversify its more... (D)

SNGPL bills 50 percent 'old charges' extra for January
The massive increase in gas bills for the month of January is due to the decision of Sui Northern Gas Pipeline (SNGPL) to charge over 50 percent additional gas tariff under the head of 'old charges'. The 'old charges' are in addition to a whopping 35 percent increase in gas tariff by the government over a span of last one year ie from January 2009 to January 2010 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
  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.