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March 02 , 2010
Statistics
KSE-100 Index
Previous Index 9,657.79
Current Index 9,498.57
Change % (1.65)%
YTD (CY10) 1.19%
YTD (FY10) 32.62%

International Indicators
  Close %age
BSE-30 16,429.55 1.08%
HANGSENG 21,056.93 2.17%
NIKKEI 255 10,172.06 0.50%
FTSE 5,405.94 1.00%
DJIA 10,403.79 0.76%
SSEC 3,087.84 1.18%
NASDAQ 2,273.71 1.58%

SCRA
Feb 26 , 2010 (3.48)
February, 2010 7.32
YTD 294.06

Money Market Updates
6m T-bill 24-Feb-10 11.90%
12m T-bill 24-Feb-10 11.98%
3m KIBOR 12.36%
6m KIBOR 12.42%
10 yrs PIB 12.70%

Exchange Rates
Inter-Bank Currency Rates
Rs/EURO 115.86
Rs/UK 129.09
Rs/US 85.11
Rs/OR 218.66

Commodities
Oil $78.65/barrel
Oil Change in % (0.06)%
Gold $1,117.10/ounce
Gold Change in % (0.11)%

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 20, 2010) 14.37bn
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 20, 2010) Rs4,360bn

NAVs and Returns
as of Mar 01, 2010
Funds Offer Redemption
POBOP 46.5399/- 46.0745/-
Daily Return 8.02%
POAIIF 50.4056/- 49.9015/-
Daily Return 7.35%
POAIF 52.27/- 50.96/-
Daily Return (28.58)%
POASF 56.74/- 55.32/-
Daily Return (30.71)%
POAF 10.7246/-
Daily Return 11.76%
*Daily Returns are calculated as per MUFAP guidelines

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

July-December budget deficit estimated at 2.7 percent of GDP
Budget deficit for the first six months of current fiscal year (July-December) has been estimated at 2.7 percent of Gross Domestic Product (GDP), or Rs 403 billion in actual rupee terms, Ministry of Finance said. According to July-December 2009 fiscal operation figures report released by the Ministry of Finance on Monday, defence expenditure was Rs 165 billion, around 48 percent of budgetary allocation for the year, reflecting accuracy of budgetary estimates more... (BR)

Jan bank spreads down 53bps YoY
According SBP released lending and deposit rates for January 2010 the spreads have reduced by 53bps Year-on-Year. It's a big decline (YoY ) and would hurt the banking sector by squeezing its income over interest more... (FD)

'4Gas' LNG terminal at PQA: OPIC and IFC to provide $370 million
The United States (US) government agency, Overseas Private Investment Corporation (OPIC), and World Bank affiliate, International Financial Corporation (IFC), have committed to provide $370 million financing to a Dutch company, '4Gas' for setting up a terminal at Port Qasim for LNG import, Business Recorder has learnt more... (BR)

Politics

Govt enjoys Army's full support: Zardari'Pakistan will defeat terrorists at all costs'
President Asif Ali Zardari has contradicted western media reports which suggested Pakistani military does not support the policies of the democratic government of PPP, saying countering the effects of a decade of dictatorship requires bold actions more... (FD)

Palestinian state crucial to Middle East peace: Pakistan must act decisively against terrorism, says Singh
India's Prime Minister Manmohan Singh said on Monday that an independent Palestinian state was key to Middle East stability and called on arch-foe Pakistan to "act decisively" against terrorism. "There is no issue more important for peace and stability in the region than the question of Palestine," Singh told members of the Saudi Shura Council in Riyadh more... (BR)

Government urged to revise POL prices on quarterly basis
Pakistan Petroleum Dealers Association (PPDA) has proposed to the government to revise the prices of petroleum products every three months, instead of monthly basis, to break the monopoly of transporters. According to a survey conducted by Business Recorder, people have termed the recent reduction in oil prices an eyewash as the government has failed to control the transporters who have not reduced fares after oil price reduction more... (BR)

Sector Briefing

Rumours of a co's corporate bond default hit KSE hardi
Rumours about corporate bond default of a textile company belonging to a major group and uncertainty over Capital Gains Tax (CGT) deprived Karachi Stock Exchange (KSE) of 1.6 per cent which ended below 9,500 more... (FD)

NIT gets good response to Income Fund IPO
NIT has received tremendous response for initial offering of its 'Income Fund' with combined pre-IPO and IPO subscription by individuals, corporations and financial institutions, surpassing Rs 3.7 billion more... (BR)

If additional tax or penalty not imposed: E&P companies ask FBR to make deduction of decommissioning cost
Exploration and Production (E&P) companies have asked the Federal Board of Revenue to make deduction of decommissioning cost admissible for income tax purpose. Sources told Business Recorder on Monday the PPEPCA had tabled a Memorandum of Understanding, which was chalked out without mutual consultations, in a meeting with tax officials, recommending several suggestions to resolve tax disputes 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.