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July 01, 2010
Statistics
KSE-100 Index
Previous Index 9,702.03
Current Index 9,721.91
Change % 0.20%
YTD (CY10) 3.57%
YTD (FY10) 35.74%

International Indicators
  Close %age
BSE-30 17,700.90 0.95%
HANGSENG 20,129.30 (0.59)%
NIKKEI 255 9,382.64 (2.00)%
FTSE 4,916.87 0.10%
DJIA 9,774.02 (0.98)%
SSEC 2,398.37 (1.18)%
NASDAQ 2,109.24 (1.21)%

SCRA
June 29 , 2010 0.99
June, 2010 42.17
YTD 542.63

Money Market Updates
6m T-bill 16-June-10 12.10%
12m T-bil 16-June-10 12.19%
3m KIBOR 12.29%
6m KIBOR 12.37%
10 yrs PIB 12.67%

Exchange Rates
Inter-Bank Currency Rates
Rs/EURO 104.58
Rs/UK 128.96
Rs/US 85.57
Rs/OR 219.95

Commodities
Oil $74.90/barrel
Oil Change in % (0.97)%
Gold $1,240.80/ounce
Gold Change in % (0.41)%

Inflation
CPI Gen. - YoY (May-10) 13.1%
CPI Gen. - FY10 (Jul -09-May 10) 11.6%
NFNE Core INFL - YoY (May-10) 10.3%
NFNE Core INFL - FY10 (Jul-09-May-10) 11.1%

Economic Indicators
GDP Growth FY10E 4.10 %
Per Capita Income $ 1,051
Population 169.73mn
US$ Reserves (Jun 18, 2010) $15.78bn
Trade Balance (Jul-May 10) $(13.88)bn
Curr. A/C (Jul-May-10) $(2.98)bn
Remittances (Jul -May 10) $8.06bn
Foreign Investment (Jul -May-10) $1.89bn
All Sch. Banks Deposit Base (Jun 18, 2010) Rs4,575bn

NAVs and Returns
as of June 29, 2010
Funds Offer Redemption
POBOP 47.9436/- 47.4642/-
Daily Return 4,170.74%
POAIIF 54.8632/-   54.3146/-
Daily Return 2,259.73%
POAIF 54.30/- 52.94/-
Daily Return 2,465.72%
POASF 51.51/- 50.22/-
Daily Return 36.38%
POAF 11.1132/-
Daily Return 254.91%
*Daily Returns are calculated as per MUFAP guidelines

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

Rs 45 billion collection till June 30 to help hit Rs 1,330 billion mark: FBR
Federal Board of Revenue Chairman Sohail Ahmed said on Wednesday the FBR will be able to collect record amount of Rs 45 billion on last day of FY10 which would enable the tax authorities to touch Rs 1,330 billion for the outgoing fiscal year against the target of Rs 1,380 billion more... (BR)

Power tariff increased by 7.6 percent
The government has increased power tariff of discos and KESC by 7.6 percent from July 1, 2010 across the board as per conditions agreed with the International Monetary Fund (IMF). The consumers who use up to 100 units per month will pay 19 paisa more per unit whereas those who consume 101-300 units will pay 29 paisa more per unit more... (BR)

46 percent revenue used for debt servicing
Almost 46 percent of government revenue was used for interest and principal payments on public debt during first nine months of fiscal year 2009-10 aggregating Rs 640.2 billion. Sources in banking sector told Business Recorder on Wednesday that as percentage of the projected GDP for 2009-10, the public debt servicing stood at 4.4 percent more... (BR)


Politics

Pakistan needs nuclear deterrence, says US
“These are the most important weapons in the Pakistani arsenal. These are their crown jewels,” said Mike Mullen more... (D)

US striving to regain Pakistan's trust: Mullen
The United States is working hard to regain Pakistan's trust following years of estrangement in the pre 9/11 period, but the effort is going to take time, according to America's top military officer. "It's not going to happen overnight," Admiral Mike Mullen, Chairman Joint Chief Staff, said of regaining the Pakistanis' trust more... (BR)

Rehman Malik offers talks to the Taliban
Interior Minister Rehman Malik on Wednesday offered that the government would hold dialogue with the Taliban if they surrendered their arms more... (D)


Sector Briefing

PSO keen to acquire Shell stake in PRL
Pakistan State Oil (PSO), the country's largest oil marketing company has shown its intention to acquire Shell International Petroleum Company Limited, UK (Shell) shareholding in Pakistan Refinery Limited. According to information sent to Karachi Stock Exchange on Wednesday, PRL has received communication from PSO and Shell informing the refinery that they have entered preliminary and exploratory discussions whereby PSO has shown its intention to acquire Shell's 30 percent shareholding in PRL more... (BR)

Investment criteria for setting up OMC may be approved
The meeting of the Economic Co-ordination Committee (ECC) of the Cabinet, scheduled for Thursday July 1, is expected to approve an investment criteria for setting up a new Oil Marketing Company (OMC) by reducing equity investment to Rs 500 million with minimum upfront equity of Rs 100 million to attract investment in the oil industry, Business Recorder has learnt more... (BR)

Oil prices reduced
The government on Monday slashed oil prices in line with reduction in global oil prices effective today (Thursday). The government has slashed the price of petrol by Rs 1.09 per litre, HOBC by Rs 1.43 per litre, HSD by Rs 4.14 per litre, LDO by Rs 0.95 per litre, Kerosene oil by Rs 0.11 per litre, JP-1 local by Rs 0.16 per litre, JP-4 by Rs 1.17 per litre and JP-8 by 0.17 per litre 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
    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.