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March 24 , 2010
Statistics
KSE-100 Index
Previous Index 10,000.93
Current Index 9,963.35
Change % (0.38)%
YTD (CY10) 6.14%
YTD (FY10) 39.11%

International Indicators
  Close %age
BSE-30 17,451.02 0.23%
HANGSENG 20,987.00 0.30%
NIKKEI 255 10,774.15 (0.50)%
FTSE 5,673.63 0.50%
DJIA 10,888.83 0.95%
SSEC 3,053.17 (0.70)%
NASDAQ 2,415.24 0.83%

SCRA
Mar 19 , 2010 6.60
March, 2010 83.52
YTD 377.58

Money Market Updates
6m T-bill 10-Mar-10 12.30%
12m T-bill 10-Mar-10 12.36%
3m KIBOR 12.36%
6m KIBOR 12.43%
10 yrs PIB 12.45%

Exchange Rates
Inter-Bank Currency Rates
Rs/EURO 114.10
Rs/UK 126.23
Rs/US 84.50
Rs/OR 215.37

Commodities
Oil $81.24/barrel
Oil Change in % (0.82)%
Gold $1,101.00/ounce
Gold Change in % (0.24)%

Inflation
CPI Gen. - YoY (Feb 10) 13.00%
CPI Gen. - FY10 (Jul -09-Feb 10) 11.10%
NFNE Core INFL - YoY (Feb-10) 10.10%
NFNE Core INFL - FY10 (Jul-09-Feb-10) 11.40%

Economic Indicators
GDP Growth FY10E 2.00%
Per Capita Income $1,046
Population 168.20mn
US$ Reserves (Mar 18, 2010) 14.85bn
Trade Balance (Jul-Feb 10) $(9.42)bn
Curr. A/C (Jul-Feb-10) $(2.56)bn
Remittances (Jul -Feb 10) $5.79bn
Foreign Investment (Jul -Feb-10) $1.02bn
All Sch. Banks Deposit Base (Mar 13, 2010) Rs4,419bn

NAVs and Returns
as of Mar 22, 2010
Funds Offer Redemption
POBOP 46.9348/- 46.4655/-
Daily Return (40.39)%
POAIIF 50.6108/- 50.1047/-
Daily Return 7.40%
POAIF 52.67/- 51.35/-
Daily Return 3.56%
POASF 56.72/- 55.30/-
Daily Return 3.30%
POAF 10.7894/-
Daily Return 5.38%
*Daily Returns are calculated as per MUFAP guidelines

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

37 percent fall in eight-month services trade deficit
The country's services trade deficit during eight months of current fiscal year amounted to $1.69 billion, mainly due to high payments of transportation, construction, financial, computers services and royalties. The central bank statistics showed that Pakistan's overall services sector exports stood at $2.737 billion against imports of $4.427 billion during July-February period of fiscal year 2009-10 more... (BR)

July-Feb: Govt earns Rs214bn from petroleum sector
Rs55.5bn was saved on oil imports due to lower international prices and Rs158bn was collected as different taxes more... (D)

Primary objective of a monetary policy
The primary objective of the monetary policy is to maintain price stability, contain inflation and formulate a policy that should help in bringing economic prosperity and welfare to the people by creating new jobs. Similarly on the administrative side, it is the responsibility of the government to contain inflation, if caused by supply shock through administrative measures more... (BR)

Politics

US open to discuss Pakistan's request for nuclear energy
Pakistan has submitted a wish list to Washington ahead of high-level talks this week, asking for pilotless drones and helicopters as well as economic and other aid, said US and Pakistani officials on Tuesday. The 56-page document, set to be discussed in talks in Washington on Wednesday and Thursday, covers a range of demands including a request for more help on water and energy as Pakistan struggles with daily power cuts across the country more... (BR)

Qureshi & Kayani meet key US officials
The United States and Pakistan engaged in preparatory talks on Monday, ahead of a strategic dialogue which US Secretary of State Hillary Clinton says will forge even closer ties between the two allies more... (D)

Nation to hear good news about 1973 Constitution: Gilani
Prime Minister Syed Yusuf Raza Gilani on Tuesday said the nation will soon hear good news about the Constitution of 1973. Speaking at a reception hosted on the occasion of Pakistan Day here, the Prime Minister said the parliament has asserted its supremacy during the period of the PPP government more... (BR)

Sector Briefing

Finance told to arrange Rs 43 billion for Pepco: payments to PSO by April 2
The Cabinet Committee on Energy Crisis (CCEC) has directed Finance Ministry to arrange Rs 43 billion for Pakistan Electric Power Company (Pepco) to make payments to Pakistan State Oil (PSO) till April 2, 2010. According to sources, Finance Ministry has been directed to release Rs 13 billion on account of KESC subsidy, Rs 15 billion through TFCs and Rs 13 billion under the heads of tube-well subsidy and General Sales Tax (GST) by April 2 more... (BR)

Textile industry: SBP announces mark-up rate facility
Following government directives, the State Bank of Pakistan (SBP) has announced 2.5 percent mark-up rate facility on outstanding loans of textile industry under its Export Finance Scheme, and 5 percent mark-up rate support against long-term loans availed from banks/DFIs more... (BR)

Chinese firm prepared to invest in Pakistan's auto sector
A Chinese firm has shown interest in investing in auto sector in Pakistan and intends to set up an assembly plant to market small cars, vans and electric cars as a joint venture in association with local entrepreneurs. According to details available in the Industrial Bulletin of the Engineering Development Board (EDB), the desire was expressed by the CEO of the Chinese firm during a meeting with officials of EBD at its head office in January this year 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.