International Army refutes any gun pointing incident at federal ministers G20's fiscal guard to hold harder yardsticks See on Page 12 *Crude Oil (brent)$/bbl 86.98 *Crude Oil (WTI)$/bbl 85.69 *Cotton $/lb 134.64 *Gold $/ozs 1,385.50 *Silver $/ozs 26.80 Malaysian Palm $ 1,077.00 GOLD (NCEL) PKR 38,193 KHI Cotton 40Kg PKR 10,181 *Last Updated 20:00 PST Yearly(Jul, 2010 up to 10-Nov-2010) Monthly(Nov, 2010 up to 10-Nov-2010) Daily (10-Nov-2010) Total Portfolio Invest (22 Oct-2010) 120.97 16.25 32.54 2532 2.05 -3.00 -1.80 2.53 0.29 0.28 -0.35 SCRA(U.S $ in million) Portfolio Investment FIPI (12-Nov-2010) Local Companies (12-Nov-2010) Banks / DFI (12-Nov-2010) Mutual Funds (12-Nov-2010) NBFC (12-Nov-2010) Local Investors (12-Nov-2010) Other Organization (12-Nov-2010) (U.S $ in million) NCCPL GDR update Commodities Forex Reserves (5-Nov-10) Inflation CPI% (Jul 10-Nov 10) Exports (Jul 10-Nov 10) Imports (Jul 10-Nov 10) Trade Balance (Jul 10-Nov 10) Current A/C (Jul 10- Sep10) Remittances (Jul 10-Nov 10) Foreign Invest (Jul 10-Sep 10) Revenue (Jul 10-Oct 10) Foreign Debt (Sep 10) Domestic Debt (Aug 10) Repatriated Profit (Jul- Sep 10) LSM Growth (Aug 10) GDP Growth FY10E Per Capita Income FY10 Population $16.95bn 14.17% $7.17bn $12.25bn $(5.08)bn $(545)mn $3.50bn $455.10mn Rs 411bn $58.41bn Rs 4863bn $124.90mn -3.85% 4.10% $1,051 171.03mn Economic Indicators Symbols MCB (1 GDR= 2 Shares) OGDC (1 GDR= 10 Shares) UBL (1 GDR= 4 Shares) LUCK (1 GDR= 4 Shares) HUBC (1 GDR= 25 Shares) $.Price 2.60 19.30 2.00 1.70 10.07 PKR/Shares 111.02 164.82 42.70 36.30 34.40 T-Bills (3 Mths) T-Bills (6 Mths) T-Bills (12 Mths) Discount Rate Kibor (1 Mth) Kibor (3 Mths) Kibor (6 Mths) Kibor ( 9 Mths) Kibor (1Yr) P.I.B ( 3 Yrs) P.I.B (5 Yrs) P.I.B (10 Yrs) P.I.B (15 Yrs) P.I.B (20 Yrs) P.I.B (30 Yrs) 03-Nov-2010 03-Nov-2010 03-Nov-2010 29-Sep-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12-Nov-2010 12.75% 13.11% 13.24% 13.50% 12.79% 12.97% 13.23% 13.63% 13.71% 13.64% 13.74% 13.82% 14.21% 14.33% 14.50% Money Market Update Symbols Buy (Rs) Sell (Rs) Australian $ 83.00 84.00 Canadian $ 83.40 84.40 Danish Krone 15.90 16.40 Euro 114.80 116.30 Hong Kong $ 10.95 11.15 Japanese Yen 1.023 1.049 Saudi Riyal 22.35 22.65 Singapore $ 64.80 65.80 Swedish Korona 12.85 13.00 Swiss Franc 87.00 88.00 U.A.E Dirham 22.95 23.30 UK Pound 135.50 137.00 US $ 85.05 85.45 Open Mkt Currency Rates Symbols Buying Selling TT Clean TT & OD Australian $ 84.72 84.92 Canadian $ 84.62 84.82 Danish Krone 15.58 15.62 Euro 116.13 116.40 Hong Kong $ 11.00 11.03 Japanese Yen 1.036 1.038 Saudi Riyal 22.74 22.80 Singapore $ 65.81 65.96 Swedish Korona 12.42 12.45 Swiss Franc 87.38 87.58 U.A.E Dirham 23.22 23.28 UK Pound 137.25 137.57 US $ 85.40 85.59 Inter-Bank Currency Rates Subscribe now Tel: 92-21-5311893-6 Fax: 92-21-5388428 Email: editor@ thefinancialdaily.com www.thefinancialdaily.com CITIES MAX-TEMP MIN ISLAMABAD 27°C 8°C KARACHI 34°C 23°C LAHORE 28°C 13°C FAISALABAD 28°C 11°C QUETTA 23°C 1°C RAWALPINDI 28°C 11°C Weather Forecast Index Close Change KSE 100 10,874.02 31.22 Nikkei 225 9,724.81 136.65 Hang Seng 24,222.58 477.72 Sensex 30 20,156.89 432.20 ADX 2,758.44 3.22 SSE COMP. 2,985.44 162.30 FTSE 100 5,806.74 8.49 *Dow Jones 11,212.79 70.31 *Last Updated 20:00 PST Global Indices GAUNGZHOU: President Asif Ali Zardari during the banquet hosted by the Guangdong city leadership at Baiyan International Convention Center. -APP See on Page 2 CID office attack not result of security lapse: CM Sindh ISLAMABAD: The Reformed General Sales Tax (RGST) 2010 Bill was tabled before the National Assembly on Friday amid severe MQM and Opposition protest. The Finance Amendment Bill 2010 was also tabled before the house for implementation of flood surcharge and increase in federal excise duty. Both the bills were tabled in the house by Finance Minister Senator Abdul Hafeez Shaikh. As soon as he stood up to table the RGST Bill 2010 all the Opposition benchers stood up from their chairs and started thumping desks while shouting 'RGST unacceptable' slogan. Prime Minister Yousuf Raza Gilani was also present at the rumpus of a session. Amidst the uproar Shaikh tabled the RGST Bill 2010 and Finance Amendment Bill 2010, which were forwarded to Standing Committee on Finance. The Standing commit- tee would review the Bill and report back to National Assembly soon. Later the speaker adjourned the session ‘sine die’ and read the President's orders in this regard. Earlier speaking on a point of order Opposition leader in the National Assembly Ch Nisar said that the Reformed GST Bill should have been present- ed before Parliament after tak- ing all political parties includ- ing the opposition into confi- dence. He said that government takes decisions in the wee hours of the night. He argued that Opposition was not taken on board regarding Reformed General Sales Tax (RGST) 2010 bill terming the finance minister's status in the House as a mere guest. He said that this bill would bring a tsunami of inflation, it would be better if new taxes were imposed on landlords. Speaking on the floor Prime Minister Yousuf Raza Gilani said that the democratic gov- ernment has not come through the backdoor, adding we would let anyone bulldoze the Parliament. He told the house that that all Chief Ministers have been taken into confi- dence over the RGST. Meanwhile JUI-F taking the cue form MQM turned to oppose RGST in the Senate. Slogans saying 'RGST unac- ceptable' were shouted in the Senate till its session was adjourned for indefinite period. Senator Nair Bukhari pre- sented the copy of the RGST See # 1 Page 11 RGST bill tabled amid utter outcry ‘All CMs taken into confidence over the the bill’ ISLAMABAD: Government has revised a forecast of 2010- 11 sugar production to 3.7 mil- lion tonnes, up by about 500,000 tonnes from an earlier estimate, despite flood damage to the sugarcane crop, officials said on Friday. The authorities had earlier expected up to 3.2 million tonnes of sugar from the crop, after the country's worst floods washed away nearly 10.5 mil- lion tonnes of sugarcane. But after recent surveys of the flood-hit areas in the main sugar-growing provinces of Punjab and Sindh, government and industry officials told a meeting on Thursday that yield would be higher in areas where there were rains but no floods. "Although floods damaged the crop, because of excessive rains we are expecting a healthy crop and up to 20 per cent increase in yield per acre," Javed Kayani, chairman Pakistan Sugar Mills Association (PSMA), told Reuters. "Our estimate is that we should be able to produce about 3.7 million tonnes of sugar from the crop." An official at the Ministry of Industries and Production con- firmed that sugar output esti- mates had been revised to 3.7 million tonnes. Fearing shortages, the gov- ernment in September waived a 25 per cent regulatory duty See # 5 Page 11 Sugar output outlook upped Govt sees 3.7mn tonne sugar in 2010-11 ISLAMABAD: Finance Minister Abdul Hafeez Sheikh Friday said the government immediately needs additional local resources to ease the pressure on the budget, there- fore Reformed GST, flood sur- charge are being introduced and federal excise duty has been increased. Relating the objectives and reasons of Finance (Amendment) Act, 2010 in the National Assembly, the finance minister said a large number of people had been rendered homeless due to floods there- fore additional funds were required to meet the extraordi- nary demands for expenditures in connection with rehabilita- tion of flood affectees. Therefore, it has been pro- posed to amend certain provi- sions of the Income Tax Ordinance 2001 and the Federal Excise Act 2005 through Finance (Amendment) Act-2010 Bill. See # 7 Page 11 Shaikh rationalises new levies, tax hike Govt needs liquidity immediately: finmin UNITED NATIONS: UN has said the $2 billion aid appeal for Pakistan’s flood victims, the largest-ever launched by any international body for a natural disaster, now stands funded by 45 per cent . To a question at the regular noon briefing, Spokesman Farhan Haq said although the response to the appeal was improving, the United Nations continues to urge the interna- tional community to provide more funding. See # 4 Page 11 UN $2bn flood-aid call answered 45pc ISLAMABAD: Federal Interior Minister Rehman Malik Friday blamed Lashkar- e-Jhangvi for the attack on Karachi CID building. Talking to media men outside Parliament House, he vowed to root out terrorism from the country by taking strict action against the enemies of state. "Taliban want to trigger panic and fear among the peo- ple", he said. Malik again warned the culprits of grave consequences, while he urged the people at large to stay calm. Meanwhile, the funeral prayers of 8 FC personnel mar- tyred in the Karachi CID office bomb blast were offered here at police headquarter gar- den. Sindh government has announced a compensation of Rs500,000 for the heirs of each martyr. Interior Minister Sindh Dr Zulfiqar Mirza, IG Sindh Sultan Salah Uddin See # 2 Page 11 Karachi terror, LeJ job: Malik Security tightened at all investigation centers Funeral prayers of martyred FC personnel offered Karachi, Saturday, November 13, 2010, Zil Hajj 6, Price Rs12 Pages 12 Jiabao to visit Pakistan next month GUANGZHOU: Chinese Premier Wen Jiabao will visit Pakistan next month, Beijing said Friday. "We are looking forward for establishing contacts between the political leadership of the two countries," said Chinese Premier during bilateral meet- ing with President Asif Ali Zardari on the sidelines of the 16th Asian Games. There were two rounds of talks, the first with aides of both sides and the second a thirty minute one-on-one meeting between the two leaders which was attended by Ambassador Masood Khan also. During the talks President Asif Ali Zardari called for a currency swap agreement and taking full advantage of the Free Trade Agreement to take the bilateral trade between the two countries up to $15 billion soon. Earlier the President and his See # 3 Page 11 NAB froze NICL scam suspect’s account not FIA, says spokesman ISLAMABAD: National Accountability Bureau (NAB) had frozen the bank account of former Minister for Defence Major (Retd) Habib Ullah Warraich in the NICL scam not FIA, a spokesman of the NAB told media on Friday. According to the spokesman it was NAB which had carried out the freezing of Major See # 8 Page 11 Chinese auto-titan turns head to Pakistan GUANGZHOU: Chairman Guangdong Automobile Industrial Group (GAIG) Zhang Fangyou Friday called on President Asif Ali Zardari here and voiced keen interest for exploring business opportu- nities in Pakistan. The President was accompa- nied by the Chairman Board of Investment Saleem Mandviwala and delegation members including Minister of State for Foreign Affairs Nawabzada Malik Amad Khan, Chief Minister Gilgit Baltistan Syed Mehdi Shah, Ambassador to China Masood Khan, and Spokesman to the President Farhatullah Babar. President Zardari informed the head of the Chinese See # 6 Page 11 Gilani says won’t anyone bulldoze Parliament
Transcript
International
Army refutes any gun pointing incident at federal ministers
G20's fiscal guard to hold harder yardsticks See on Page 12
GAUNGZHOU: President Asif Ali Zardari during the banquet hosted by the Guangdongcity leadership at Baiyan International Convention Center. -APP
See on Page 2
CID office attack not resultof security lapse: CM Sindh
ISLAMABAD: The ReformedGeneral Sales Tax (RGST)2010 Bill was tabled before theNational Assembly on Fridayamid severe MQM andOpposition protest.
The Finance Amendment Bill2010 was also tabled before thehouse for implementation offlood surcharge and increase infederal excise duty.
Both the bills were tabled inthe house by Finance MinisterSenator Abdul Hafeez Shaikh.
As soon as he stood up totable the RGST Bill 2010 allthe Opposition benchers stoodup from their chairs and startedthumping desks while shouting'RGST unacceptable' slogan.Prime Minister Yousuf RazaGilani was also present at therumpus of a session.
Amidst the uproar Shaikhtabled the RGST Bill 2010 andFinance Amendment Bill 2010,
which were forwarded toStanding Committee onFinance. The Standing commit-tee would review the Bill andreport back to NationalAssembly soon.
Later the speaker adjournedthe session ‘sine die’ and readthe President's orders in thisregard.
Earlier speaking on a point oforder Opposition leader in theNational Assembly Ch Nisarsaid that the Reformed GSTBill should have been present-ed before Parliament after tak-ing all political parties includ-ing the opposition into confi-dence.
He said that governmenttakes decisions in the weehours of the night. He arguedthat Opposition was not takenon board regarding ReformedGeneral Sales Tax (RGST)2010 bill terming the finance
minister's status in the House asa mere guest.
He said that this bill wouldbring a tsunami of inflation, itwould be better if new taxeswere imposed on landlords.
Speaking on the floor PrimeMinister Yousuf Raza Gilanisaid that the democratic gov-ernment has not come throughthe backdoor, adding we wouldlet anyone bulldoze theParliament. He told the housethat that all Chief Ministershave been taken into confi-dence over the RGST.
Meanwhile JUI-F taking thecue form MQM turned tooppose RGST in the Senate.Slogans saying 'RGST unac-ceptable' were shouted in theSenate till its session wasadjourned for indefinite period.
Senator Nair Bukhari pre-sented the copy of the RGST
See # 1 Page 11
RGST bill tabledamid utter outcry
‘All CMs taken into confidence over the the bill’
ISLAMABAD: Governmenthas revised a forecast of 2010-11 sugar production to 3.7 mil-lion tonnes, up by about500,000 tonnes from an earlierestimate, despite flood damageto the sugarcane crop, officialssaid on Friday.
The authorities had earlierexpected up to 3.2 milliontonnes of sugar from the crop,after the country's worst floodswashed away nearly 10.5 mil-lion tonnes of sugarcane.
But after recent surveys ofthe flood-hit areas in the mainsugar-growing provinces ofPunjab and Sindh, governmentand industry officials told ameeting on Thursday that yieldwould be higher in areas wherethere were rains but no floods.
"Although floods damagedthe crop, because of excessiverains we are expecting ahealthy crop and up to 20 percent increase in yield per acre,"Javed Kayani, chairmanPakistan Sugar MillsAssociation (PSMA), toldReuters.
"Our estimate is that weshould be able to produceabout 3.7 million tonnes ofsugar from the crop."
An official at the Ministry ofIndustries and Production con-firmed that sugar output esti-mates had been revised to 3.7million tonnes.
Fearing shortages, the gov-ernment in September waiveda 25 per cent regulatory duty
See # 5 Page 11
Sugar outputoutlook upped
Govt sees 3.7mn tonne sugar in 2010-11
ISLAMABAD: FinanceMinister Abdul Hafeez SheikhFriday said the governmentimmediately needs additionallocal resources to ease thepressure on the budget, there-fore Reformed GST, flood sur-charge are being introducedand federal excise duty hasbeen increased.
Relating the objectives andreasons of Finance(Amendment) Act, 2010 in theNational Assembly, the financeminister said a large number of
people had been renderedhomeless due to floods there-fore additional funds wererequired to meet the extraordi-nary demands for expendituresin connection with rehabilita-tion of flood affectees.
Therefore, it has been pro-posed to amend certain provi-sions of the Income TaxOrdinance 2001 and theFederal Excise Act 2005through Finance (Amendment)Act-2010 Bill.
See # 7 Page 11
Shaikh rationalisesnew levies, tax hike
Govt needs liquidity immediately: finmin
UNITED NATIONS: UN hassaid the $2 billion aid appealfor Pakistan’s flood victims,the largest-ever launched byany international body for anatural disaster, now standsfunded by 45 per cent .
To a question at the regular
noon briefing, SpokesmanFarhan Haq said although theresponse to the appeal wasimproving, the United Nationscontinues to urge the interna-tional community to providemore funding.
See # 4 Page 11
UN $2bn flood-aidcall answered 45pc
ISLAMABAD: FederalInterior Minister RehmanMalik Friday blamed Lashkar-e-Jhangvi for the attack onKarachi CID building.
Talking to media men outsideParliament House, he vowed toroot out terrorism from thecountry by taking strict actionagainst the enemies of state.
"Taliban want to triggerpanic and fear among the peo-ple", he said.
Malik again warned theculprits of grave consequences,
while he urged the people atlarge to stay calm.
Meanwhile, the funeralprayers of 8 FC personnel mar-tyred in the Karachi CIDoffice bomb blast were offeredhere at police headquarter gar-den. Sindh government hasannounced a compensation ofRs500,000 for the heirs of eachmartyr.
Interior Minister Sindh DrZulfiqar Mirza, IG SindhSultan Salah Uddin
GUANGZHOU: ChinesePremier Wen Jiabao will visitPakistan next month, Beijingsaid Friday.
"We are looking forward forestablishing contacts betweenthe political leadership of thetwo countries," said ChinesePremier during bilateral meet-ing with President Asif AliZardari on the sidelines of the16th Asian Games.
There were two rounds oftalks, the first with aides of bothsides and the second a thirtyminute one-on-one meetingbetween the two leaders whichwas attended by AmbassadorMasood Khan also.
During the talks President AsifAli Zardari called for a currencyswap agreement and taking fulladvantage of the Free TradeAgreement to take the bilateraltrade between the two countriesup to $15 billion soon.
Earlier the President and his See # 3 Page 11
NAB froze NICLscam suspect’saccount not FIA,says spokesman
ISLAMABAD: NationalAccountability Bureau (NAB)had frozen the bank account offormer Minister for DefenceMajor (Retd) Habib UllahWarraich in the NICL scam notFIA, a spokesman of the NABtold media on Friday.
According to the spokesmanit was NAB which had carriedout the freezing of Major
See # 8 Page 11
Chineseauto-titanturns headto PakistanGUANGZHOU: ChairmanGuangdong AutomobileIndustrial Group (GAIG)Zhang Fangyou Friday calledon President Asif Ali Zardarihere and voiced keen interestfor exploring business opportu-nities in Pakistan.
The President was accompa-nied by the Chairman Board ofInvestment SaleemMandviwala and delegationmembers including Minister ofState for Foreign AffairsNawabzada Malik Amad Khan,Chief Minister Gilgit BaltistanSyed Mehdi Shah, Ambassadorto China Masood Khan, andSpokesman to the PresidentFarhatullah Babar.
President Zardari informedthe head of the Chinese
See # 6 Page 11
Gilani says won’t anyone bulldoze Parliament
2 Saturday, November 13, 2010
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Staff Reporter
KARACHI: KorangiAssociation of Trade andIndustry (KATI) has cate-gorically rejected the gov-ernment's intention toimpose flood tax andReformed GST which isset to bring another floodof price hike and any suchact of government wouldresult in irreparable loss tothe economy.
The Patron In-ChiefKATI, Chairman, SyedJohar Ali Qandhari,Chairman, StandingCommittee on Finance andTaxation, Mian Zahid
Husain, Vice Chairmen,Salimuz Zaman andShahid Javed Qureshi in astatement said that thebusiness community hadalready opposed to anynew tax considering thegrim situation of the econ-omy and the growingunemployment in thecountry.
They said that the stake-holders have not taken intoconfidence and it is beingimposed without any prop-er consultation with tradeand industry's representa-tives and it could have adisastrous impact onalready ailing economy.
"The RGST will encour-age tax evaders instead ofbringing more tax-payersinto the tax net due to itshaphazard way of imple-mentation", Qandhari saidadding that no governmentmeasures could be suc-cessful if implementedproper exercise or takingthe stakeholders into con-fidence.
Qandhari while rejectingFlood Tax said that thepeople who are alreadyoverburdened due to sky-rocketing prices and strug-gling for survival wouldnot be able to pay any fur-ther tax.
'Taxes may derail democracy'
KATI slamsimposition of RGST
KARACHI: Associationof Consulting EngineersPakistan (ACEP) and theInstitute of EngineersPakistan (IEP) has urgedthe government to involvePakistan EngineeringCouncil (PEC) in theinquiry of Shershah bridgecollapse.
Addressing a joint pressconference here Friday,president ACEP InamAhmed Osmani andChairman IEP, S JamshedAli Rizvi said that PEC isthe only authorised bodyto hold inquiry into theprofessional conduct ofregistered engineers, con-sulting engineers and otherprofessionals.
They said that PEC is
statutory body having apower to constitute tri-bunals, as may be requiredto hold such inquiries.
PEC's constituted tribu-nal can recommend impo-sition of penalty on theengineers and can alsorecover as compensationan amount not exceedingthe amount received by therespondent from the com-plainant.
Osmani said that the asso-ciations have also requestedthe Chief Justice ofPakistan to involve PEC inthe inquiry and his responseis awaited. He said that thegovernment can ask PEC toconduct inquiry into thismatter and submit a reportof findings. He pointed out
that only three, out of sevenmembers of the inquiryteam have signed the reportwhich appears not to be incompliance with interna-tional standards on forensicengineering investigationas required in this particu-lar case.
Osmani was of the opin-ion that handling of matterby police will not serve thepurpose as it involves tech-nical nature of the subject.The persons identified inthe report and the FIR arehonorable and respectedprofessionals who havevast experience of design-ing and supervising hun-dreds of excellent bridgesand other structures in thepast, he added.-Online
ACEP demandsPEC to probe
Shershah incident
KARACHI: KhurshidAlam, Chairman, PakistanTanners Associationstrongly criticised theGovernment decision toimplement ReformedGeneral Sales Tax (RGST)with effect from 1stJanuary'2011 along withimposition of 10 per centflood surcharge which arethe highly detrimental tothe leather industry, thesecond largest export ori-ented industry in term offoreign exchange earnings.
He said the Governmentinstead of safeguarding theinterest of traders andexporters is fully attentive
to the directives of theIMF. Khurshid stressed theGovernment to put off themeasures and withdraw itsun-business friendly deci-sion of implementingRGST as well as flood sur-charge.
He said that the leatherindustry is already payinghuge amounts of Rs15-16Billion on account of vari-ous taxes to theGovernment. If the RGSTis imposed, the industrywill come under great pres-sure by paying additionaltax approximately Rs.119billion on this account. It isthe need of hour, the
Government should takestock of this alarming situ-ation and get the leatherindustry rid from heavyfinancial burden otherwisemost of the leather manu-facturing units will have tobe closed down.
He said that the PTA timeand again apprised theGovernment of genuineproposals/issues of leatherindustry which includeexemption of alreadydeclared five zero ratingsectors including leatherindustry from the RGSTbut no attention has beenpaid by the Government asyet.-APP
Tanners reject thelevy of new taxes
Staff Reporter
K A R A C H I :Establishment of PakistanIndonesia Business Forum(PIBF) is under consider-ation to help boost twoway trade and investment,Consul General ofIndonesia Rossalis RAdenan informed busi-ness community here.
Speaking at a meetingof Karachi Chamber ofCommerce and Industry(KCCI), he said that underthe proposal President ofKCCI will be theChairman of the forumand its official will belocated in Karachi.
He said that final deci-sion in this regard wouldbe made by Ambassadorof Indonesia soon. TheConsul General said thatIndonesia enjoying bestcordial, economical andsentimental relations withPakistan. Referring to
trade balance, which is infavour of Indonesia, heemphasized the need ofmaking efforts from boththe sides to narrow downthis gap. He was of theview that frequentexchange of trade delega-tion, quick disseminationof business, trade andinvestment informantscan play a vital role tobridge trade balance gapas well as boost two waytrade.
Replying to a question,he said Indonesia usingbio power generatingtechnology for electricitygenerating beside gas, oiland coal. To another ques-tion, Rossalis R Adenansaid that Indonesian gov-ernment had allowedreduction in taxes, bankmark-up were slasheddown and given industrialsectors tax holidays tobring the country out ofeconomic crises in 1993.
He advised businesscommunity to visitIndonesia to see the exist-ing opportunities anddevelop person to personcontacts. Senior VisePresident KCCI, TalatMehmood said that thegovernment is makingefforts to improve law andorder condition forattracting foreigninvestors. He invitedIndonesian business dele-gation to visit Pakistanand have a look of exist-ing opportunities of tradeand investment.
Trigustono Suprianto,Indonesia's Consul forEconomics, MuhammadAslam Firpo, Dr QaziAhmed Kamal, NaeemAhmed, Munir AhmedGodil, Liaquat Shaikh,Durre ShehwarNisar,KCCI ManagingCommittee Memberswere also present at theoccasion.
Pak, Indonesia toboost 2-way trade
KARACHI: The HomeDepartment Sindh hasissued code of conduct forcollection of hides andskins of sacrificial animalsduring Eidul-Adha.
According to statementof Home Departmentissued here Friday, a meet-ing was held by the HomeSecretary with all the rep-resentatives of various reli-gious and welfare organi-sations to formulate codeof conduct.
It was decided that allthose organisationsinvolved in the collection
of hides and skins willhave to seek prior permis-sion from the HomeDepartment or the con-cerned area DCO. Only theregistered parties/organisa-tions and those signatoriesof the code of conduct, willbe allowed to collect theskins and hides.
According to the code ofconduct, it will also beensured that the hides andskins were being collectedunder coercion from anyquarter and that publiccould give donation ontheir own will.-APP
Code of conductfor hides collection
SATURDAY
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Documentry
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Dellpatrons
WizKidscontest
KARACHI: DellConsumer actively co-sponsored Wizkids 2010, aregular event since 1997and South Asia's largest lit-erary and cultural inter-school competition, whichwas recently held inPakistan for the first time.
Being ardent Dell fans, awinner exclaimed that anew Dell Mini Laptop isanyone's best friend in an"online life". Other winnersalso displayed their enthu-siasm by labeling Dell astheir favorite brand and theDell Mini Laptop as aprized possession, whichwould help them to achievetheir future goals in ademanding life on the go.
In its continued effort tosupport educational activi-ties Dell collaborates withvarious partners, alignedwith Dells strategic vision,to further the future of edu-cation in Pakistan. Theevent was based on 10unique competitions, rang-ing from quizzes to shortstory writing and judged bya panel of celebrities,industry professionals andcorporate leaders.-PR
Dr Baigto attendgrowthforum
KARACHI: Dr MirzaIkhtiar Baig, FederalAdvisor on Textile, andChairman Baig Group hasbeen invited by FederalMinister for Finance DrHafeez Shaikh to attendPakistan DevelopmentForum (PDF) on 14th &15th Nov in Islamabad.
The forum will beaddressed by Secretary ofState for InternationalDevelopment UK AndrewMitchell, US SpecialRepresentative forAfghanistan &PakistanRichard Holbrooke, VicePresident World Bank,Vice President AsianDevelopment Bank,Representative of IMF,Representative of UnitedNations. SeniorEconomists and GovernorSBP would also attend theforum to discuss state ofeconomy, challenges andreforms.
The forum will also focuson how to deal with currenteconomic challenges bothfiscal and monetary andlong term agenda towardsgrowth and sectoralreforms. The FinanceMinister will present to theworld, Pakistan strategicplan as dialogue with thepartners to realign theirstrategy.-APP
LAHORE: President, American Business Forum, Rizwan U Khan hosted a dinnerin honour of the newly appointed US Ambassador His Excellency Cameron PMunter and his wife at the Royal Palm Golf and Country Club.-Staff Photo
KARACHI: Administrator DHA Brig Aamer Raza Qureshi presiding over ameeting of renowned town planning and desiging experts engaged in master
planning of DHA City Karachi project on Super Highway.-Staff Photo
KARACHI: German Ambassador Dr Michael Koch and the German CounselGeneral for Karachi visited Aman Foundation along with the Regional Director
of GTZ, the German technical development agency.-Staff Photo
KARACHI: Talat Mahmood, Senior Vice President, Karachi Chamber of Commerce & Industrypresenting KCCI Crest to Rossalis R Adenan, Consul General of Indonesia. Also in picture,
Indonesia’s Consul for Econmics, Muhammad Aslam Firpo, Dr Qazi Ahmed Kamal, Munir AhmedGodil, Durre Shewar Nisar, KCCI Managing Commitee Members.-Staff Photo
KARACHI: Atif Bajwa, President & CEO of Soneri Bank addressing the man-agers of the south region and senior Executives of Soneri Bank.-Staff Photo
KARACHI: METRO Cash & Carry Pakistancelebrated its 3rd anniversary in Pakistan. On the
occasion a lucky draw event was held for itscustomers for instant prizes. Seen in the picture is
the lucky winner of the grand prize, a car, withthe top management of LG Electronics.-Staff Photo
DPS holdselocution
competitionKARACHI: ElocutionContest foster the thinkingand analytical skills amongstudents and provide anopportunity for students todevelop their powers ofelocution and manner ofexpression, thus creating amore progressive society.
These views wereexpressed by panel ofjudges at bilingual elocu-tion competition heldrecently at Dawood PublicSchool.
Experts said that suchcompetitions help studentsmastering the expression andlanguage they speak in andfine tunes their powers ofpersuasion. It also provideshealthy interaction amongstudents of different schoolsas fifteen school participatedin the competition. -PR
Growersurge to
facilitateagri-sector
HYDERABAD: SindhChamber of Agriculturehas called for provision offacilities to agriculture sec-tor similar to thoseendowed to the industrialsector in the country.
"Growers should be pro-vided veritable loans ontheir agricultural land," ameeting of Sindh Chamberof Agriculture presidedover by Syed NadeemKamar here on Fridaydemanded.
The meeting noted thatalthough the price of DAPfertilizer had increased by10 per cent in the interna-tional market but the localcompanies were selling thesame product at a muchexpensive rate allegedlyafter creating its artificialshortage.
The government shouldtake stern action againstcreating shortage of fer-tiliser in local market,itdemanded. Among othergrowers, Mir Murad AliKhan Talpur, MuhammadAnwar Bachani,Muhammad Khan Sarejo,attended the meeting.-APP
Mass transitprogrammetalked overfor Karachi
KARACHI: Officials ofJapan InternationalCooperation Agency(JICA), Sindh Board ofInvestment (SBI) andKarachi Mass Transit onFriday discussed the cre-ation of KarachiEducation City MassTransit Programme andsubsequently its inclusioninto Karachi Mass TransitProgramme (KMTP).
Advisor to CM onInvestment ZubairMotiwala presided overthe meeting which alsoexamined the proposal toconnect this mass transitscheme with Japan specialeconomic zone, livestockeconomic zone, Karachimarble city, Fisheries eco-nomic zone and PortQasim.
Station facility expert ofJICA Hiroyasu Kudo,deputy team leader NaokiYamaguchi, ToshiakiHori, director generalKMTP, Malik ZaheerulIslam were also presenton the occasion.-APP
MUMBAI: The Indian rupeeposted its biggest one-day fallin 5-½ months on Friday, assharp losses in local shares andbunched-up dollar demandafter the US Veteran's Day hol-iday weighed.
The partially convertiblerupee closed 44.80/81 per dol-lar, after hitting 44.85, itsweakest since Sept. 29 andbelow Thursday's close of44.31/32. The local unit endeddown 1.1 per cent on the day,its worst daily fall since June 1.
On the week, the rupeedropped 1.35 per cent, its worstweekly fall in nearly six months."The dollar was stronger in thenon-deliverable forwards, com-modities prices were lower, equi-ties were down, dollar wasstrong against majors throughmost of the session. Together, allpushed the rupee lower," saidVikas Chittiprolu, a foreignexchange dealer with state-runAndhra Bank.
One-month offshore non-
deliverable forward contractswere quoted at 45.16, 0.8 percent weaker than the onshorespot rate, suggesting a bearishnear-term outlook.
In the currency futures market,the most traded near-month dol-lar-rupee contracts on theNational Stock Exchange, MCX-SX and United Stock Exchangeclosed at 44.95, 44.9450 and44.9575 respectively, with thetotal traded volume on the threeexchanges at an average $8.3 bil-lion. -Reuters
Indian rupee logsbiggest fall in 5-½ mth
3Saturday, November 13, 2010
Currency Rates
Karachi: The following are the London Inter-Bank Offered Rates (LIBOR).
British Members Association Interest Settlement Rates.
AT 11:00 LONDON TIME 12/11/2010
A USD GBP CAD EUR JPY
O/N 0.22563 0.55250 0.99833 0.73125 SN 0.09438
1WK 0.24828 0.55563 1.03417 0.75375 0.10625
2WK 0.25000 0.56000 1.06333 0.76500 0.11375
1MO 0.25344 0.57000 1.09667 0.80875 0.12313
2MO 0.26828 0.62875 1.14583 0.87750 0.15125
3MO 0.28438 0.73913 1.19917 0.99250 0.19438
4MO 0.33250 0.82288 1.25667 1.05063 0.27375
5MO 0.39250 0.92663 1.32333 1.13375 0.33188
6MO 0.44281 1.03063 1.39917 1.23375 0.39375
7MO 0.49344 1.10788 1.45500 1.28063 0.45500
8MO 0.54719 1.19000 1.53667 1.32813 0.50250
9MO 0.59906 1.27188 1.60000 1.37750 0.54750
10MO 0.65094 1.34875 1.67667 1.42000 0.57500
11MO 0.70438 1.41750 1.75833 1.46375 0.60375
12MO 0.76281 1.48500 1.84667 1.51250 0.63125
Countries Selling Buying BuyingTT & OD TT Clean OD/T.CHQ
Revaluation RatesTreasury Bills / PIBs / FIBs Holding Applicable for November 12, 2010
Source Events Actual Forecast Previous
GBP Nationwide Consumer Confidence 52 55 53
EUR French Prelim GDP q/q 0.4% 0.5% 0.7%
EUR German Prelim GDP q/q 0.7% 0.8% 2.3%
EUR Italian Prelim GDP q/q 0.2% 0.4% 0.5%
EUR Flash GDP q/q 0.4% 0.5% 1.0%
EUR Industrial Production m/m -0.9% 0.4% 1.1%
GBP CB Leading Index m/m 0.3% 0.1%
USD Prelim UoM Consumer Sentiment 69.3 69.1 67.7
USD Prelim UoM Inflation Expectations 3.0% 2.7%
Previous Day
Central Bank Next Meeting Last Change Current
Interest Rate
Bank of Canada Dec 07 2010 Sep 08 2010 1%
Bank of England Dec 09 2010 Mar 05 2009 0.50%
Bank of Japan Dec 21 2010 Dec 19 2008 0.10%
European Central Bank Dec 02 2010 May 07 2009 1%
Federal Reserve Dec 14 2010 Dec 16 2008 0.25%
Swiss National Bank Dec 16 2010 Mar 12 2009 0.25%
The Reserve Bank of Australia Dec 07 2010 Nov 02 2010 4.75%
Major Central Banks Overview
Division of National Bank of Pakistan (NBP)KARACHI, November 12,2010 Treasury Management Division of National Bankof Pakistan (NBP) Monday issued the following Exchange rates:
Period AUD/USD EUR/CHF EUR/GBP EUR/JPY GBP/USD NZD/USD USD/CAD USD/CHF
NEW YORK: The euro ral-lied on Friday from a six-weeklow against the dollar afterEuropeans leaders sought toreassure nervous bondholdersabout the value of their hold-ings.
A statement from France,Germany, Italy, Spain andBritain, issued at the Group of20 summit in Seoul, saidbondholders would not beforced to write down the valueof their holdings in the eventof a new euro-zone bailout.That eased pressure on Irishdebt that has sparked freshfears of contagion.
The euro responded tosteady buying by macro fundsas the cost of insuring Irish,Spanish and Portuguese debtagainst default fell.
Speculation of a rescuepackage for Ireland added to
the euro's allure earlier in theglobal session. This was laterdenied and the single currencyfell from the session peak.
The euro rose to a session
high of $1.3777, well off thesession low of $1.3573 onEBS.
It last traded at 1.3721 onReuters data, up 0.5 per cent.
The euro has shed over 2 percent this week, the biggestweekly loss in three month, aslong positions built before theFed's bond buying decision
last week have been unwoundheading into the year-endbook-closing season.
Analysts said the commu-nique from Group of 20 lead-
ers meeting in Seoul wasmildly positive as it agreed totackle tensions that havethreatened "currency wars"and trade protectionism.
The G-20 seemed to give thegreen signal to emergingcountries with flexible curren-cy regimes to impose capitalcontrols.
The Australian dollar, afavorite among investorschoosing to buy into growth,sold off sharply. It shed morethan 1 per cent to as low as$0.9825, its lowest since Nov.1. It was last down 0.6 percent at $0.9912.
Media reports suggestedChina was planning to limitforeigners investing in itsalready speculative real estatesector while South Korea wasplanning capital controls.
The dollar fell against theyen, moving back towards its15-year lows. It was down 0.3per cent at 82.30 yen, withJapanese exporters selling intothe dollar's recent bounce.
The euro fell to a two-monthlow against the yen in earlytrading, hitting 111.04 onEBS, but was last up 0.2 percent at 112.96. -Reuters
Euro climbs as EU leadersreassure bondholders
Swiss francrises vs euro
ZURICH: The Swiss francrose against the euro on Friday,tracking the dollar higher as thesingle currency continued toslide on fears Ireland may fol-low Greece in requiring abailout.
The franc has gained over 3per cent against the euro sincethe beginning of November,when concerns about euro-zonedebt began to resurface, andearly on Friday's session hit itshighest level since lateSeptember.
The franc rose 0.3 per centagainst the euro compared tothe New York close, trading at1.3279 francs per euro at 0826GMT. The franc was largelyunchanged against the dollar at0.9745 francs per dollar.
The franc's renewed surgeagainst the euro is likely to givea headache to the SwissNational Bank, which tried tofight the currency's rise throughinterventions earlier this year. -Reuters
SHANGHAI: China's yuanended down on Friday after thedollar's global rebound althoughthe People's Bank of China setthe mid-point at a record high.
Spot yuan was trading at6.6370 versus the dollar, weakerthan Thursday's close of 6.6257.It has now risen 2.85 per centsince its depegging to the dollarin mid-June.
"The yuan has risen a lot inrecent days. It's time for a correc-tion now," said a dealer at aEuropean bank in Shanghai."And the G20 meeting is comingto a close, the political pressurehas also decreased."
Before the start of trade, thePBOC set the mid-point at6.6239, slightly stronger than theprevious day's 6.6242, despite theUS dollar index's 0.7 per cent riseon Thursday.
Dealers said the Chinese cen-tral bank was displaying strongintentions of letting the yuan rise.
"With such high inflation inChina, it's not difficult to expectthat China will let the yuan rise,"said a dealer at a Chinese bank inShenzhen.
The National Bureau ofStatistics reported on Thursdaythat China's consumer price infla-tion rose to a 25-month high of4.4 per cent in the year toOctober.
Analysts warn that the govern-ment could be behind the curve intamping down on price pressuresand that it will have to ratchet upthe intensity of monetary tighten-ing in the coming months. OnFriday, financial markets inChina were weighed down byworries over a possible newround of monetary tightening.
Dealers said the yuan's retreatwas temporary and would notaffect its long-term prospects.The Chinese currency was likelyto resume its ascent in comingdays and could rise to 6.6 per dol-lar around the end of the year.
Benchmark one-yeardollar/yuan non-deliverable for-wards (NDFs) rose slightly to6.5221 bid on late Friday, com-pared with 6.4350 at Thursday'sclose, with their implied 12-month yuan appreciation fallingto 1.56 per cent from Thursday's2.94 per cent. -Reuters
Yuan slips vs USD,but uptrend intact
SYDNEY/WELLINGTON: The Australianand New Zealand dollars were set for theirbiggest weekly losses in three months on Fridayas a broad sell-off in commodities and stocksfuelled profit-taking in the pair.
Analysts said a combination of factors droveprofit-taking across asset classes: renewed con-cerns about Europe's fiscal woes, worries Chinamay further tighten policy, and persistentunwinding of stretched positions in the euro andUS dollar. The Australian dollar broke support at$0.9975 to fall as far as $0.9926, down 2.5 percent from a 28-year peak of $1.0182 hit onMonday. Next support is between previousresistance levels of $0.9890 and $0.9910.
"It was a combination of factors that add up toan overall 'risk-off' tone," said Grant Turley, ananalyst at ANZ. "People want to take profitsafter some good runs, particularly in the Aussiedollar." For the week, the Australian dollar lost2.1 per cent, its worse performance in any weeksince August 15. For 2010 however, it was still
up a hefty 10.7 per cent, the second best-per-forming major currency after the yen.
In a nod to the robust fundamentals underpin-ning the Aussie dollar, the euro fell to a recordlow of A$1.3640 on Friday.
Against the New Zealand dollar, the euro hit atwo-month low of NZ$1.7453. A break of sup-port at Sept 13 low of NZ$1.7354 could herald afall back to the June low of NZ$1.7173.
In late trade, the New Zealand dollar was softat $0.7756, from $0.7800 in New York.
The NZ dollar has had a bumpy ride this week,with sluggish data pointing to a tepid recovery,but US move to print more money has lifted mostcurrencies against the US dollar. For the week, theNZ dollar is down 2.2 per cent, its biggest week-ly loss since August 15. Still, it is up almost threeper cent this month, even after the central banktried to jawbone the currency lower by saying astrong NZ dollar would limit future rate rises.That helped the Aussie/kiwi pair to trim its recentdecline to inch higher to NZ$1.2804. -Reuters
Australian, NZ dollars inworst week in three months
SINGAPORE: A rebound in theUS dollar and widespread riskreduction weighed on mostemerging Asian currencies onFriday, and uneasiness amonginvestors about more capitalcurbs could keep pressure onthem in the near term.
Policy changes in thePhilippines, China and Taiwanin the last few weeks to guardagainst rapid currency apprecia-tion from capital inflows haveincreased uncertainty about whatelse authorities may do.
This uncertainty looks set tocontinue following a Group of20 leaders' summit in Seoul thatpractically gave countries thathave seen huge capital inflows
the go-ahead to impose morecontrols.
The South Korean won postedits biggest daily percentage lossagainst the dollar in almost fivemonths on mounting fears thatfinancial authorities will takefurther action to slow hot moneyinflows.
The Philippine peso buckedthe weakening trend after S&Praised their foreign currencysovereign credit rating on thePhilippines.
The Philippine peso rebound-ed on news that S&P upgradedits foreign currency rating toBB/B from BB-/B, affirming astable outlook. It gained 0.26 percent to 43.76/USD at 0741
GMT, reversing earlier losses ondollar short covering from theweaker euro overnight.
"Some market players wereprobably taking long positionson the USD/PHP earlier today,before the S&P announcement,"a Manila-based trader said. "Buteverybody's selling now."
The won came under furtherpressure from dollar-short cov-ering and dollar demand linkedto foreign investors' stock salesincluding One Equity Partners'sale of 2.1 million shares in OCI.
Foreign investors reportedrecord net stock sales onThursday, dumping a net 1.31trillion won worth of stocks onthe main exchange. -Reuters
Asian currencies
Mostly weaker againstrebounding $, peso gains
LONDON: Sterling fell versusthe euro on Friday as specula-tion -- quickly denied -- thatIreland may soon receive abailout quelled some fearsabout debt problems facingperiphery euro-zone nations.
Ireland's finance ministrysaid chatter about a bailout wasuntrue, but traders said reassur-ances from the EU and G20
that bondholders would nothave to take a write-down onIrish debt helped the eurorecover from a seven-week lowversus the pound.
A European Commissionspokesman said Dublin has notrequested financial aid fromthe European Union, while theEU and Group of 20 leaderssaid investors would not beforced to take a hit on theirIrish bond holdings.
By 1154 GMT, the euro trad-ed at 85.35 pence, havingclimbed roughly 1 per cent on
the day to a session high of85.61 pence. The single curren-cy recovered from a fall to84.50 pence hit earlier in theday, its weakest since lateSeptember.
The single currency waspoised to snap a six-day losingstreak against the euro, havingfound support at 84.50, thepair's 100-day moving average.
But the single currency hov-ered below its 55-week movingaverage at 86.73 pence and aclose below that level wouldsuggest more losses may be instore. It remains on course toend the week 1.4 per centlower. The pound fell 0.5 percent to $1.6049, pulling furtheraway from $1.63 hit last week,its strongest since January.
Against a currency basket,sterling traded at 81.2, pullingback from 81.7 hit onThursday, its highest sincemid-September. -Reuters
Stg falls on Irelandrescue speculation
Taiwandollar surgesTAIPEI: The Taiwan dollarfirmed on Friday on recoveryfrom suspected central bankintervention but met strongresistance from a slip in theeuro, weaker stocks and a newsreport on restrictions in late-session trades.
Taiwan's currency traded nearT$30.17 per US dollar in the firsthour as prices floated back tolevels before the speculation-wary central bank moved onThursday to cut gains. TheTaiwan dollar closed at T$30.532in the previous session.
But concerns about debt inIreland ate into the euro, elevat-ing the US dollar in early trade,while US and Taiwan stocksfell on fears of weak earnings.Both factors pressured the localcurrency.
Local media reported that thecentral bank had limited forextrade orders to no less than 30minutes before the marketclose, up from 15 minutes.
But some dealers alreadyknew about the move geared tosquelch currency speculation,causing little impact in Friday'sTaiwan dollar prices.
Markets are watching theG20 summit in Seoul for acommunique that could set thetone for world currency valua-tions. -Reuters
Markets brace themselves for more capital curbs post-G20
Trade volatile on speculation and denial of Irish bailout
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Attack onthe CID
officeThursday's attack on Crime Investigation
Department (CID) in Karachi should be an eyeopener for the law enforcing agencies. Theattack once again proved how ill-prepared, help-less and novice are the agencies. This office islocated in high security zone but well preparedand executed raid by the militants to get freesome of their accomplices show that no part ofthe city is secure.
The daredevils also took the responsibility ofthe attack. This could be termed the secondassault because the first successful attempt wasmade at Karachi city courts. The two attackswere executed by two separate banned outfits.Law forcing agencies are fully aware of theactivities of these banned outfits and often arrestthe culprits but no one has been awarded anypunishment because of 'insufficient evidences'.
After such incidences police and media comeup with lengthy stories but the bottom line ishelplessness. No CCTV footage on the incidentis available, thanks to ongoing electricity loadshedding. No footage of attack on the shrine ofAbdullah Shah Ghazi could be made availablebecause of some technical faults.
The attack on CID office was well masterminded as the culprits used latest weapons,grenades and finally banged a loaded withammunition truck with the building. One won-ders such an encounter continued for more thanhalf an hour in the high alert zone but no swiftmove was made to deter the culprits.
Some basic questions come to minds: 1) howthese banned outfits get the arms and theirmovements could not be intercepted? 2) Fromwhere these outfits get the money and suicidebombers? Where to be suicide bombers aretrained? Why law enforcing agencies have notbeen able take preemptive measures?
One tends to suspect that militant groups andbanned outfits also have roots within the lawenforcing agencies. Not only that the activistsare provided police protection but are also sup-ported by various political parties. It is onrecord that some of the political parties haveextremely cordial relationship with thesebanned outfits. It is also suspected that somecountries also provide them information, moneyand armaments as well as training.
There are also evidences of involvement offoreign intelligence agencies, each having somevested interest. It seems that these attacks areaimed at deterring attention of Pakistan Armyfrom borders. Some of the groups have beendemanding handing over control of Karachi toArmy, may be to initiate civil war.
It has become imperative for the residents ofKarachi to beef up security. They must keep awatch on the aliens in search of human shield.They should also be very careful while hiringwatchmen. Stringent measures should also betaken to register all the refugees/aliens. It mustbe kept in mind that now Karachi is the focus ofterrorists and every citizen has the responsibili-ty to save the city.
4Saturday, November 13, 2010
Publisher & Editor-in-Chief: Amir A. Ashary
Editor: Shakil H. Jafri
Executive Editor: Manzar Naqvi
Honorary Advisory Board
Haseeb Khan, FCA
Asim Abbas Ashary, CPA
Akhtar M. Zaidi, FCA
Dr. A. Hadi Shahid, FCA
Muhammad Arif
S. Muneer Hussain Rizvi
Khurram Shehzad, CFA
Prof. Zakaria Sajid (KU)
Zahid Bukhari SVP HBL (retd)
Ismat Sabir
Head office
111-C, Jami Commercial Street 11, Phase VII, DHA KarachiTelephone: 92-21-5311893-6 Fax: 92-21-5388428
the financial crises haveproduced, even a smallchance of a currency war isworth paying attention to.With the arrival of QE2 (theFed's second round of quan-titative easing), many ofcountries are grousing.China, Japan, and Germanyare all upset; they want tothe status quo to be main-tained. But frankly thatstance is more than a littlehypocritical.
Since 1995, China hasbeen doing the exact samething with much largeramounts of money. Chinahas been printing yuan tobuy dollars for the past 15years, which keeps the yuanartificially low and drivesthe dollar up. It also givesChina something for noth-ing, the trusted dollar, themost stable currency in theworld, for the suspect yuan.
Japan did something simi-lar in the 1980s, and contin-ues to keep the yen low.When it jumped too highrecently, the Bank of Japanintervened to knock someworth out of the yen. TheGermans haven't done near-ly as much -- they haven'thad to. By being part of theeurozone, Germany has anartificially low currency, theeuro is worth less than theDeutschemark would havebeen alone. The euro isdragged down by a wholehost of weaker economies.
Germany has the chance topiously sit by and lecture,while benefiting from this
arrangement. But nevermind the hypocrisy. What isbrewing right now is a cur-rency war that would be farworse than any oneregular currencydevaluation.
The problem is, forany one transaction,it makes sense for acountry to devalueits currency. Importsbecome more expen-sive; consumers buymore domesticgoods. Exportsbecome cheaper;more goods are soldoverseas. China hasbeen riding this for-mula during itsentire bull run.However, with all countrieshurting, there are great risksthat this could snowball.
One country lowers theircurrency to make up for the
move of a previous countryand then another countrydoes the same to stay com-
petitive and the circle con-tinues until all currenciesenter a period of advanced,perhaps even hyper infla-
tion.Should that happen, the
financial crisis we just sur-vived will seem a mild prel-ude to the real show.
Hyperin flation, after all, iswhat brought down theWeimar Republic and
what's turnedZimbabwe intoa joke of acountry thisc e n t u r y .However, if wewind up in atit-for-tat situa-tion, hyperin-flation is a verylikely result.
Hopefully, theleaders of theworld under-stand this, andwill do every-thing to avoidit. The problemis, that requires
one country to be the "biggerman", to accept a weakerposition with a stronger cur-rency for the greater good.
That's no easy thing to do,especially since it wouldlikely mean electoral defeatin a home election.
Without elections and
with the worst currencybehavior leading up to thecrisis one might think Chinawould be a good candidate.Shave a few points off GDPgrowth, and China mightstill be outpacing the rest ofthe world.
The problem is, theChinese might face unrest athome. There were plenty ofprotests when GDP growthslowed during the crisis.What's more, China is fac-ing a demographic timebomb, starting next yearwhen the population willstart to age. That exerts astrong downward pressureon growth (less workerspaying for more services forthe elderly), so the Chineseare unlikely to give a nudgein the wrong direction atthis delicate moment.
There may not end upbeing a currency war;nations might be talk-ing tough now, fullyaware that they can'tafford to advance pasttalk. A full-blown cur-rency war would beworse than any tradewar we've ever seen...and it could be the mostprofitable.
Eighteen years agothe world's most notori-ous billionaires crasheda major world market,pocketing more than$6.11 billion in one day.Well, they're about to
launch another raid againsta major world currency.And that's a fantastic oppor-tunity for you... if you actnow.
Brewing Currency Wars
An independent taskforce cautionedPresident Barack
Obama on Friday about thehigh cost of the Afghanistanwar and said he should con-sider a narrow military mis-sion if his December reviewfinds the current strategy isnot working.
The 25-member taskforce, led by former DeputySecretary of State RichardArmitage and formernational security adviserSamuel Berger, said it saw"hopeful signs" inAfghanistan, such asimproved training of securi-ty forces, but other trendswere less encouraging.
"The cloudy picture andhigh costs raise the ques-tion of whether the UnitedStates should now downsizeits ambitions and reduce itsmilitary presence inAfghanistan," the task forcesaid in a 98-page report.
"We are mindful of thereal threat we face. But weare also aware of the costsof the present strategy. Wecannot accept these costsunless the strategy beginsto show signs of progress,"said the task force, whichwas sponsored by theCouncil on ForeignRelations think tank.
Dan Markey, a South Asiaanalyst at the council whowas project director for thereport, said the findings
were a "sober reflection ofa Washington consensusthat is increasingly skepti-cal and concerned" aboutthe war.
The task force was com-posed of a broad range offormer government offi-
cials, military leaders, aca-demics and jour-nalists withexpertise in theregion. The reportwas not requestedby the Obamaadminis t ra t ion ,but the task forcedid speak to offi-cials involvedwith the issue.
The group gavea qualifiedendorsement toObama's ambi-tious counterinsurgency-style strategy, but only if itis clearly making progress.
"If the December 2010review of US strategy inAfghanistan concludes thatthe present strategy is notworking, the task force rec-ommends that a shift to amore limited mission at asubstantially reduced level
of military force would be
warranted," the report said.The administration's cur-
rent strategy calls for US-
led forces, including nearly100,000 American troops,to disrupt al Qaeda and itsTaliban allies whiletraining Afghan militaryand police to take oversecurity.
At the same time, foreigncivilians areworking tohelp improveAfghan gov-ernance in aneffort tob r o a d e np o p u l a rsupport forthe adminis-tration.
As theD e c e m b e rr e v i e wapproaches, itis increasinglyclear that
defense officials believe thewar plan is work-ing but needsmore time, despiterising casualtiesand worseningviolence.
Administrationofficials havebegun to down-play Obama'sJuly 2011 dead-line for begin-ning to hand oversecurity toAfghan forces
and withdraw US troops asconditions merit.
Defense Secretary Robert
Gates and Secretary of StateHillary Clinton said thisweek they viewed AfghanPresident Hamid Karzai'splan to assume full responsi-bility for the country's secu-rity by 2014 as a realisticgoal Nato should endorse atits summit this month.
Administration officialshave indicated the strategyreview is likely to bringonly tweaks rather than awholesale reappraisal of thewar effort.
The task force urged theadministration to go beyonda narrow evaluation of theplaces where Afghans maybe able to take responsibili-ty for security and alsoinclude a "clear-eyedassessment" of whetherthere is enough progress toconclude the strategy isworking.
"The important thing thatthe report does is to try toclarify what progressshould look like," Markeysaid.
The report urges theadministration to answerquestions like whetherAfghan police and armycapabilities have been sig-nificantly improved,whether momentum in con-tested areas has shiftedagainst the insurgency andwhether normal life returnsto areas once Nato opera-tions have concluded.-Reuters
The high costof Afghan war
The task force was composedof a broad range of former
government officials, military leaders,academics and journalists with expertise
in the region. The report was notrequested by the Obama administration,but the task force did speak to officials
involved with the issue.
“
As the December reviewapproaches, it is increasinglyclear that defense officials
believe the war plan isworking but needs more
time, despite rising casualtiesand worsening violence
Hopefully, the leaders of the worldunderstand this, and will do everythingto avoid it. The problem is, that requires
one country to be the "bigger man", toaccept a weaker position with a strongercurrency for the greater good. That's no
easy thing to do, especially since itwould likely mean electoral defeat in a
home election
Divine Powers Harping tunes of self pity has become a national trait lately as politicians, anchors, authors and commentators continuously point towards foreign hands and invisi-
ble forces that have brought our nation to a pitiable condition but remain unable to trace those who have an origin in the very soil of this country. The mindset is stillintact, strengthening even, that allows these lethal hands the freedom to roam at will, and ultimately succeed to destroy its social, moral and economic structure toleave us dangling and suspended in space.
Take the case of the floods that Pakistan is going through. Speculations are being made about the hands that are behind this massive flooding and as usual, the blamereceives a shoulder in the form of the American project HAARP that possesses the divine capacity to cause floods, earthquakes and other such climatic disorientationsthat conveniently paints us as victims and targets and all such crap that relieves us of the burdensome blame of emitting too many untreated chemicals from industriessituated in residential areas, using cars that should have seen the junk yard long ago and the wisdom of the wise men who find an easy solution in burning the wasteinstead of dispensing with it in an appropriate manner.
We need to be wary of such thoughts that compel us to be exempted of all the blame and the responsibility of keeping good relations with our neighbors, avoidingdeforestation, and building dams and reservoirs that would have rendered all the affects of the HAARP useless, instead, would have steered it towards our benefit. Toblame, it is said, is the easiest thing to do that gives rise to failure while to rectify a wrong is the hardest, which Letterman explains as follows; a man may fall manytimes but he won't be a failure until he says someone pushed him.
History provides ample proof that the God sides only those who have the will to improve themselves the conditions that the world ordains for them. Can we reallycall ourselves the seeker of His mercy, compassion and forgiveness after the manner in which humanity is being treated in this part of the globe? Viewing our actions,can we still wait for miracles? Should we really blame the others for our miserable state?
Lubna Umar-Islamabad
The problem is, for any one transac-tion, it makes sense for a country to
devalue its currency. Imports becomemore expensive; consumers buy more
domestic goods. Exports become cheaper;more goods are sold overseas. China hasbeen riding this formula during its entire
bull run. However, with all countrieshurting, there are great risks that this
could snowball
“
LETTER TO THE EDITOR
FERTILISER000 tonnesUrea Offtake (Jan to July 10) 3,565Urea Offtake (July 10) 580Urea Price (Rs/50 kg) 879DAP Offtake (Jan to July 09) 374DAP Offtake (July 10) 49DAP Price (Rs/50 kg) 2,626
AUTOMOBILE ASSEMBLERPAK SUZUKI MOTORUnitsProduction (July 09 to June 10) 71,998
Sales (July 09 to June 10) 73,993
Production (July 10) 7,509
Sales (July 10) 4,503
INDUS MOTOR COProduction (July 09 to June 10) 50,557
Sales (July 09 to June 10) 50,823
Production (July 10) 5,162
Sales (July 10) 4,999
HONDA ATLAS CARProduction (July 09 to June 10) 13,500
Sales (July 09 to June 10) 14,120
Production (July 10) 1,560
Sales (July 10) 1,272
DEWAN FAROOQ MOTORSProduction (July 09 to June 10)1,218
Sales (July 09 to June 10) 1,371
Production (July 10) 41
Sales (July 10) 40
BANKING SECTORScheduled bank (Rs in mn)Deposit (August 20,10) 4,595,176
Advances (August 20,10) 3,304,533
Investments (August 20,10) 1,788,671
Spread (July 2010) 7.51%
OIL MARKETING CO(000 tons)MS (Jul 09 to June 10) 1,933
MS (July 10) 188
Kerosene (Jul 09 to June 10) 164
Kerosene (July 10) 15
JP (Jul 09 to June 10) 1,377
JP (July 10) 129
HSD (Jul 09 to June 10) 7,435
HSD (July 10) 664
LDO (Jul 09 to June 10) 75
LDO (July 10) 7
Fuel Oil (Jul 09 to June 10) 9,259
Fuel Oil (July 10) 869
Others (Jul 09 to June 10) 13
Others (July 10) 1
PRICES (Ex-Refinery) RsMS (1 Sep 10) 40.85
MS (1 Aug 10) 41.22
MS % Chg -0.90%
Kerosene (1 Sep 10) 47.14
Kerosene (1 Aug 10) 46.55
Kerosene % Chg 1.27%
JP-1 (1 Sep 10) 47.37
JP-1 (1 Aug 10) 46.78
JP-1 % Chg 1.26%
HSD (1 Sep 10) 50.61
HSD (1 Aug 10) 49.63
HSD % Chg 1.97%
LDO (1 Sep 10) 46.37
LDO (1 Aug 10) 45.29
LDO % Chg 2.38%
Fuel Oil (1 Sep 10) 39,932
Fuel Oil (1 Aug 10) 39,723
Sector Updates
Symbol Close Vol (mn)LOTPTA 12.05 21.77 JSCL 11.76 6.26 HUBC 34.42 5.93 AHSL 25.16 4.83 NPL 14.97 4.10
Symbol Close ChangeRMPL 1,989.00 78.70 FZTM 426.85 8.85 HINO 136.54 6.50 INDU 260.34 6.17 SAPL 128.00 5.40
Symbol Close ChangeCOLG 841.06 -43.82ULEVER 4,050.00 -38.99SIEM 1,271.00 -38BATA 623.71 -32.82NRL 252.79 -7.59
Plus 153Minus 189Unchanged 19
Top 5 Volume Leaders
Major Losers
Major Gainers
KSE-100 Index
LSE-25 Index
ISE-10 Index
Active Issues
Saturday, November 13, 2010 5
Opening 10,905.24
Closing 10,874.02
Change 31.22
% Change 0.29
Turnover (mn) 97.52
Opening 3,412.21
Closing 3,392.58
Change 19.63
% Change 0.58
Turnover (mn) 4.84
Opening 2,768.95
Closing 2,766.91
Change 2.04
% Change 0.07
Turnover (mn) 0.17
Sell-off continues; Manilafares worst on week
South East Asian stocks
Europe shares fall on Irelandbailout talk, China
Nawaz Ali
KARACHI: Negative activi-ties continued at the KarachiStock Exchange on the lastday of the week with lowinvestor participation follow-ing a deadly bomb blast in thecountry's financial hub killingmore than a dozen people onThursday night.
At least 15 people werekilled and 100 injured in a sui-cide attack at the building ofCrime investigationDepartment (CID) located inhigh security zone.
The benchmark KSE-100index ended 31 points down ata level of 10,874 points whileKSE-30 index and KSE all-share index lost 27 and 19points to close at 10,461 pointsand 7,564 points respectively.
"The expectation of recoveryin market after a two day cor-rection period was altered bythe Karachi bomb blast", saidArsalan Khan, equity dealer atJS Global Capital.
Market opened the day with
marginal gains but showedlackluster activities duringboth the sessions of the daymoving in range of 10,926(+ve 21 points) and 10,853 (-ve 51 points) but remainedmostly in red zone. Investorspreferred to book profits ondeteriorating law and order sit-uation in the city. Howevercontinued foreign interest andbuying by the local funds con-tained the index fall.
Further, investors also pre-ferred to offload their posi-tions ahead of Eid holidays asjust two sessions are left
before the vacations.Therefore, market ended theday on a negative note breach-ing 10,900 levels.
Volumes further dried as97.52 million shares tradedduring the day which was 27.7million shares less as com-pared to a turnover of 125.22million shares on Thursday.
Though, market ended on abearish note but the offshoreinvestors remained stuck to thebuying side. According toNCCPL data they did a netbuying of $2.05 million onFriday. On the local side; com-
panies and banks did a net sell-ing of $2.99 million and $1.8million respectively whilemutual funds did a net buyingof $2.52 million.
Lotte Pakistan was the mosttraded scrip of the day with21.77 million shares exchang-ing hands followed byJahangir Siddiqui & Co. andHub Power Company with6.26 million and 5.93 millionshares respectively.
Out of total 361 activeissues; 189 declined and 153advanced while 19 issuesremained unchanged.
KSE sentiments hitby CID office blast
TFD Report
KARACHI: Securities andExchange Commission ofPakistan (SECP) has approvedreduction in Transaction Feeby 50% (excluding SECP levy)and Custody Fee by 25% (otherthan those held by majorityshareholders and sponsors) asrecommended by the CentralDepository Company ofPakistan Limited (CDC). Thisinitiative was taken by theCDC management to givemuch needed relief and supportto the market participants,especially the investing public,considering the challengingconditions currently prevailingin the capital market.
CDC has been making sub-stantial reduction in the tariffscharged to investors over theyears. To put these reductionsin the correct perspective, sincethe inception of the Company,the fee charged on transactionshas been reduced by 80% andthat charged on custody ofshares has gone down by 70%.In addition, the custody feecharged on sponsors' blockedaccounts and majority share-holders has been reduced by88% since inception and isbeing further reduced by 10%every year until July 2013. The
annual fee charged to individ-ual IAS account holders hasbeen reduced by 83% and thatfor corporate account holdersby 60% since inception.
Besides making substantialreduction in its tariff over theyears, CDC has also alwaysfollowed a customer centricpolicy. The value added servic-es such as CDC access whichincludes SMS, Web andInteractive Voice Response(IVR) services have beenadded with regular intervals.Over the years, the Companyhas invested a substantialamount to upgrade its technol-ogy platform and has devel-oped a robust security infra-structure to safeguard theinformation relating to clients'assets held in the CentralDepository System.
The CDC is one of the fewcompanies in Pakistan whichare certified under ISO 27001,the premier international stan-dard for information securitymanagement. The Companyintends to continue its policy ofpassing on the maximum pos-sible benefit to the investingpublic without making anycompromises whatsoever inthe services it provides and thesecurity and integrity of theinformation held on its system.
CDC tariff slashblessed by SECP
TOKYO: Japan's Nikkeidropped 1.4 per cent on Fridayfrom a four and half month clos-ing high marked the day before,with profit-taking intensifying asChinese shares fell sharply andas oil and other commodityprices plunged.
Shares came under pressuredue to growing wariness overpossible further monetary tight-ening in China, forcing fundoperators to lock in profits fromrisk assets.
Profit-takers also sold onrekindled fears about some eurozone countries' debt problems,including Ireland.
But market participants inTokyo were not overly pes-simistic on Japanese stocks asthey believe the recent bullishtrend is still in place due to gen-erally strong corporate resultsand recent falls in the yen againstthe dollar, traders said.
"The Nikkei was pressuredafter seeing Shanghai sharesdrop more than 3 per cent.Profit-taking emerged as themarket could be a bit concernedabout the recent rapid rise inshare prices," said HiroakiKuramochi, chief equity market-ing officer at Tokai TokyoSecurities.
The Nikkei ended the daydown 1.4 per cent, or 136.65points, at 9,724.81. That markedits biggest daily percentage losssince October 29.
Up until Thursday, the Nikkeihad posted strong gains since thestart of the month, advancingnearly 8 per cent. It closed at9,861.46 the previous day, book-ing its highest close since June24, when it last traded above10,000. The broader Topix indexclosed down 1.1 per cent, or 9.39points, at 846.98. Japaneseshares came under strong profit-taking pressure as Chinese shareand commodities prices tumbleddue to speculation over a possi-ble new round of Chinese tight-ening measures. The Shanghai
Composite Index dropped 5.3per cent to 2,979.68, while HongKong's Hang Seng Index fell 1.6per cent to 2,4302.55. China'sofficial Securities Times report-ed that Beijing plans to limit for-eigners from investing in itsalready speculative real estatesector.
"The Nikkei could come underfurther profit-taking pressure ifcommodities prices extend theirlosses. But there is likely to be alimit on selling the Nikkei toostrongly from here," Kuramochisaid, adding that it would findsupport at 9,500.
Spot gold lost more than oneper cent in a broad retreat trig-gered by a stronger dollar.
Oil prices dropped as much as1.8 per cent, erasing this week'sgain to two-year highs.
Nikki may test 10,000 levelStill, many analysts said poten-
tial gains in Japanese shareswere in store as the outlook forthe global economy brightensand as the dollar regained someground against the yen.
The greenback rose above 82yen this week for the first timesince early October. By lateAsian trade, the dollar was down0.2 per cent at 82.30 yen.
Many equities traders stillexpect the Nikkei to eventuallyrise to the closely watched10,000 level. After reaching thatpoint, analysts see this year'shigh of 11,408.17, hit in April, asits next target.
"The Nikkei could regainstrength towards 10,000 depend-ing on the yen. The Nikkei willtarget that level if the yen weak-ens towards 85 (against the dol-lar)," said Masaru Hamaski, asenior strategist at Toyota AssetManagement.
Analysts said the market wasclosely watching the outcome ofthe G20 summit in South Korea,where discussion was expectedto include exchange rate policiesand global economic imbal-ances. Reuters
Nikkei posts biggestloss since October 29
HK, Chinastocks fall
on ratehike fears
HONG KONG/SHANGHAI:Shares in Hong Kong andShanghai posted their biggestsingle-day of loss in months onFriday as investors rushed tolock in gains on expectationsthe central bank would raiserates as early as later in the day.
China's key stock index post-ed its biggest percentage loss in14 months, ending down 5.2per cent, with investors dump-ing big cap financials while aslide in oil prices hit heavy-weight resource firms.
"There are rumours thattonight there will be a rise ininterest rates, with the risebeing 50 basis points. Thisprompted a large slump in com-modity futures and has had abig impact on the stock mar-ket," said Zhang Gang, analystat Central Securities inShanghai.
"I cannot say if this will actu-ally be the case, we will all bewatching for an announcementtonight," he said.
Analysts and brokers werequick to blame the drop onexpectations of further ratehikes by as early as Fridayevening, after data on Thursdayrevealed China's inflation spedto a 25-month high in Octoberand bank lending blew pastexpectations.
The Shanghai CompositeIndex closed at 2,985.4, plung-ing below the psychological3,000 level. The index hadrisen one per cent on Thursday,when it surged in intraday tradeto near levels not seen sinceJanuary.
Sinopec Corp was the biggestdrag on the index, falling 3.3per cent after a volatile session.
PetroChina slid 1.6 per centafter trading up more one percent. Oil fell $2 a barrel tobelow $86, retreating from a25-month high reached in theprevious session, as concernabout Irish debt boosted thedollar.
Financials slumped, withMinsheng Bank down 5 percent, Industrial andCommercial Bank of Chinadropping 1.9 per cent andheavyweight Agricultural Bankof China sliding 2.9 per cent.
Hong Kong FallsIn Hong Kong, the Hang
Seng Index fell 1.93 per cent,the biggest single-day percent-age loss in more than fourmonths. The index closed477.72 points lower at24,222.58, ending the weekdown 2.6 per cent, its biggestweekly decline in three months.
Turnover was a heavyHK$127.2 billion, its highest inmore than a week. The ChinaEnterprises Index of top locallylisted mainland companies fell3.02 per cent.
"The market underwent aconsolidation and investorslocked in gains on concernabout further monetary tighten-ing in China," said Linus Yip,strategist at First ShanghaiSecurities. "Some 400 points
See # 10 Page 11
MUMBAI: Indian sharesposted their worst weekly fallin more than 6 months andclosed 2.1 per cent lower onFriday, as concerns overIreland's debt woes sparked aworldwide sell-off in riskierassets. Banks led the losses.
Asian stocks were alsospooked by worries overChina's overheating economy,while subdued industrial out-put data in India also weighedon domestic sentiment.
The 30-share BSE indexshed 432.20 points to20,156.89, taking losses for theweek to 4 per cent. The bench-mark witnessed its worst sin-gle-day fall since June 1, withall but two of its componentslosing ground.
Around 554 million shareschanged hands on the
exchange, 33 per cent higherthan its 30-day average vol-ume.
"We had discounted theEuropean crisis, but issues likeIreland are here now. We donot know the depth of the issueas yet though," said ShashankKhade, executive vice-presi-dent of portfolio managementservices at Kotak Securities.
EU leaders reassuredinvestors they would not beforced to write down the valueof their bond holdings in theevent of a new euro zonebailout, easing pressure onIrish debt that has sparkedfresh fears of contagion.
"The Fed's (U.S. FederalReserve's) QE2 was also fac-tored in. So, collective factorsare leading to a correctionworldwide after the recent
rally."World equities as measured
by MSCI's all-country indexhave risen nearly 15 per centsince the end of August.
India's benchmark index isup 15.4 per cent so far thisyear, helped by net $28.5 bil-lion foreign fund inflows intoequities.
More than half of this invest-ment has arrived since the startof September, driving up the30-share BSE index 12.1 percent since then.
Annual industrial outputgrowth in Asia's third-largesteconomy slowed unexpectedlyin September, led by a declinein capital goods production,bolstering the likelihoodIndia's central bank will keeprates on hold in comingmonths. Reuters
Indian shares seeworst week since May
SECP issuesshow-cause,
warningnotices Staff Reporter
KARACHI: Securities MarketDivision (SMD) of theSecurities and ExchangeCommission of Pakistanapproved a term finance certifi-cate (TFC) worth Rs4 billionby Engro Corporation underthe title of Engro RupiyaCertificate, an EmployeesStock Option Schemes of NIBBank, issued two show-causenotices and a warning letterduring October.
Besides, 66 warning letterswere issued to the beneficialowners of 30 listed companiesfor late filing of returns of ben-eficial ownership. Moreover,warning letters were issued to 9listed companies for late filingof annual returns on Form-A.
Along with this five amend-ments were approved to theregulations of the stockexchanges and revising sharesubscription form and TFCssubscription form.
US stocks mid-day
Five-weekwinning
streak at riskNEW YORK: The US stocksdropped and were on track toend a five-week winning streakon Friday as expectations of aninterest rate hike in China hitcommodity prices and weighedon energy and natural resourcestocks.
The Shanghai CompositeIndex notched its biggest per-centage loss in over a year onthe likelihood China's centralbank was set to raise rates totackle inflation, a move thatcould pressure future growth.
Commodities fell broadly,with crude oil futures down 2.7per cent and copper off 2.2 percent. That weighed on cyclicalstocks, with aluminum produc-er Alcoa Inc. the top percentageloser among Dow components,slumping 2.8 per cent to$13.42.
Also on the Dow, ExxonMobil Corp was off 1.6 per centto $70.66, while heavy machin-ery maker Caterpillar Inc wasdown 2 per cent to $80.87. TheS&P energy index was off 1.6per cent, while the materialsindex lost 2.2 per cent.
"The whole commodity com-plex is exceptionally weak afterthe overnight action in China,and we need to see how it allplays out," said Tom Samuels,managing partner at PalantirCapital Management inHouston. "This may be the firstseed of doubt about the healingpower of (quantitative easing)."
See # 9 Page 11
LONDON: A commodity priceslide dented miners and energystocks, pushing Britain's topshares lower by the close onFriday, while uncertainty overthe Irish debt situation crimpedappetite for riskier assets likeequities.
The FTSE-100 ended 18.36points, or 0.3 per cent lower at5,796.87. The index is still up 21per cent since it hit the year's lowin July, boosted in part byprospects of a renewed bout ofquantitative easing from theFederal Reserve.
"Markets have rallied stronglyin the last few weeks, and there'sa bit of concern that some of thereasons behind that, like theeffectiveness of QE2 are notsoundly based," said KevinGardiner, head of investmentstrategy at Barclays Wealth.
Commodity-related stockswere the top fallers as the marketdigested Chinese data showinginflation hit a 25-month high inOctober and bank lending blewout, fuelling concerns the econo-my is overheating.
The prospect of higher rates inChina depressed metal and crudeoil prices, which pushed miningand energy stocks lower, withKazakhmys the top FTSE faller,down 3.4 per cent.
The market was also pressuredby uncertainty over the Irish debtsituation. Sources told Reutersthat Ireland was in talks abouttapping emergency funds fromthe Financial Stability Facility,refocusing investor concerns on
the state of the finances ofperipheral euro zone economies.
Royal Bank of Scotland was astrong performer, adding 2.2 percent as fears about the knock-oneffect of any possible Irishdefault receded as plans to sortout the country's finances beganto take shape. RBS has the sec-ond biggest exposure, 5.020 bil-lion euros, to Irish sovereigndebt, based on data supplied toregulators under a stress testconducted in July.
Lloyds and Standard Charteredalso climbed 1.4 and 0.5 per centrespectively, while the bankingsector pared losses.
Rolls-Royce was the top FTSE100 gainer, up 4.6 per cent,buoyed by an update from thefirm that the A380 engine failurewas confined to one componentin the company's Trent 900's tur-bine. Investec said the "clarity isa positive". Shares in the enginemaker had fallen more than 10per cent since November 3 whenQantas Airways suspendedflights of its Airbus A380 planesafter the failure of a Trent 900caused one of its aircraft to makean emergency landing.
The index is holding com-fortably above the nearestmajor support levels. "The firstsupport is last week's low at5667 and the 9-week movingaverage at 5686," said NicoleElliott at Mizuho CorporateBank. "Below that there is theweek before that's low at 5630,but that's not very strong."Reuters
Commoditiesslide, hit FTSE
Saturday, November 13, 20106
Volume 97,522,797
Value 3,331,803,105
Trades 52,183
Advanced 153
Declined 189
Unchanged 19
Total 361
Current 7,564.19
High 7,601.30
Low 7,550.15
Change i19.44
Current 10,874.02
High 10,928.30
Low 10,853.11
Change i31.22
Current 10,461.63
High 10,500.59
Low 10,442.04
Change i27.39
Market KSE 100 Index All Share Index KSE 30 Index
Current 17,343.19
High 17,456.16
Low 17,321.16
Change i107.45
KMI 30 IndexSymbolsAlert ! Unusual Movements
Technical AnalysisFundamental Highlights
As on Mar 31, 2009
Honda Atlas Cars Pakistan Ltd
HCAR closed up 0.54 at 13.11. Volume was 1,096 per cent above aver-
age (trending) and Bollinger Bands were 30 per cent wider than normal.
The company's loss after taxation stood at Rs100.884 million which
translates into a Loss Per Share of Rs0.71 for the 1st quarter of current
fiscal year (1QFY11).
HCAR is currently 6.2 per cent below its 200-day moving average and
is displaying an upward trend. Volatility is high as compared to the aver-
age volatility over the last 10 trading sessions. Volume indicators reflect
very strong flows of volume into HCAR (bullish). Trend forecasting
oscillators are currently bullish on HCAR. Momentum oscillator is cur-
rently indicating that HCAR is currently in an overbought condition.
RSI (14-day) 72.14 Total Assets (Rs in mn) 7,485.06
MA (10-day) 11.89 Total Equity (Rs in mn) 3,321.26
MA (100-day) 11.97 Revenue (Rs in mn) 13,747.82
MA (200-day) 13.95 Interest Expense 251.78
1st Support 12.50 Profit after Taxation 224.32
2nd Support 11.95 EPS 09 (Rs) 4.742
1st Resistance 13.45 Book value / share (Rs) 70.22
2nd Resistance 13.85 PE 10 E (x) -
Pivot 12.90 PBV (x) 0.19
Technical AnalysisFundamental Highlights
As on Jun 30, 2009
DCL closed up 0.09 at 1.61. Volume was 271 per cent above average
(trending) and Bollinger Bands were 39 per cent narrower than normal.
The company's loss after taxation stood at Rs173.394 million which
translates into a Loss Per Share of Rs0.46 for the 1st quarter of current
fiscal year (1QFY11).
DCL is currently 26.5 per cent below its 200-day moving average and
is displaying an upward trend. Volatility is high as compared to the aver-
age volatility over the last 10 trading sessions. Volume indicators reflect
volume flowing into and out of DCL at a relatively equal pace. Trend
forecasting oscillators are currently bullish on DCL.
RSI (14-day) 54.29 Total Assets (Rs in mn) 21,596.72
MA (10-day) 1.54 Total Equity (Rs in mn) 4,222.04
MA (100-day) 1.63 Revenue (Rs in mn) 5,682.57
MA (200-day) 2.19 Interest Expense 463.19
1st Support 1.51 Loss after Taxation (163.21)
2nd Support 1.34 EPS 09 (Rs) (0.457)
1st Resistance 1.82 Book value / share (Rs) 11.81
2nd Resistance 1.96 PE 10 E (x) -
Pivot 1.65 PBV (x) 0.14
Dewan Cement Limited
Technical AnalysisFundamental Highlights
As on Dec 31, 2009
NIB closed unchanged at 2.78. Volume was 13 per cent above average and
Bollinger Bands were 30 per cent narrower than normal. The company's
loss after taxation stood at Rs3.559 billion which translates into a Loss Per
Share of Rs0.88 for the nine months of current calendar year (9MCY10).
NIB is currently 21.5 per cent below its 200-day moving average and is
displaying a downward trend. Volatility is extremely low when compared
to the average volatility over the last 10 trading sessions. Volume indi-
cators reflect volume flowing into and out of NIB at a relatively equal
pace. Trend forecasting oscillators are currently bearish on NIB.
RSI (14-day) 50.31 Total Assets (Rs in mn) 208,118.96
MA (10-day) 2.71 Total Equity (Rs in mn) 41,643.27
MA (100-day) 2.88 Revenue (Rs in mn) 18,272.36
MA (200-day) 3.54 Interest Expense 12,872.36
1st Support 2.72 Profit after Taxation 691.05
2nd Support 2.62 EPS 09 (Rs) 0.171
1st Resistance 2.90 Book value / share (Rs) 10.30
2nd Resistance 2.98 PE 10 E (x) -
Pivot 2.80 PBV (x) 0.27
NIB Bank Limited
Technical AnalysisFundamental Highlights
As on Dec 31, 2009
MYBL closed down -0.10 at 2.00. Volume was 72 per cent above aver-age and Bollinger Bands were 42 per cent narrower than normal. Thecompany's loss after taxation stood at Rs1.392 billion which translatesinto a Loss Per Share of Rs0.74 for the nine months of current calen-dar year (9MCY10).MYBL is currently 36.5 per cent below its 200-day moving average andis displaying a downward trend. Volatility is extremely low when com-pared to the average volatility over the last 10 trading sessions. Volumeindicators reflect moderate flows of volume out of MYBL (mildly bear-ish). Trend forecasting oscillators are currently bearish on MYBL.
RSI (14-day) 43.10 Total Assets (Rs in mn) 35,490.71
MA (10-day) 2.04 Total Equity (Rs in mn) 5,104.86
MA (100-day) 2.32 Revenue (Rs in mn) 3,368.22
MA (200-day) 3.15 Interest Expense 2,881.90
1st Support 1.90 Loss after Taxation (1,639.83)
2nd Support 1.85 EPS 09 (Rs) (3.092)
1st Resistance 2.05 Book value / share (Rs) 9.63
2nd Resistance 2.15 PE 10 E (x) -
Pivot 2.00 PBV (x) 0.21
Mybank Limited
OIL AND GAS
Performance of SR Oil and Gas Index
Open High Low Close Change % Change
1,409.34 1,413.10 1,396.74 1,401.64 -7.70 -0.55
Turnover Total cos Defaulter cos Listed cap Market cap 5-Day High
United Bank Ltd 67.55 57.45 57.00 58.20 58.50 57.75
WorldCall Tele 51.06 2.50 2.45 2.65 2.75 2.60
Company RSI 1st 2nd 1st 2nd Pivot
(14-day) Support Resistance
TECHNICAL LEVELS
Dandot Cement Company Ltd 13-Nov 4:30
Honda Atlas Cars (Pakistan) Ltd 23-Nov 11:00
BOARD MEETINGS
Company Date Time
Saturday, November 13, 2010 8
GOLMAAL 3earns 70 crores
in opening
weekend
The GOLMAAL 3 hasgarnered an impres-sive gross collection
of Rs 70 crores worldwidein the opening weekenditself.
Eros International MediaLtd (Eros International), thelargest studio in India hasannounced the stupendousopening for Rohit Shetty'sGOLMAAL 3, produced byShri Ashtavinayak CineVision Ltd which releasedacross theatres worldwideon 05 November 2010.
The film has garnered animpressive gross collectionof Rs. 70 crores worldwidein the opening weekenditself.
The much awaited Diwalirelease triumphed at the boxoffice with a remarkablegross collection of Rs. 60crores (Net Collection of Rs.40 crores) in India and Rs.10 crores overseas withinjust three days.
The film opened across2000 plus screens world-wide to rave responses andcontinues to draw in recordnumbers.
One of the most anticipat-ed films this year, GOL-MAAL 3 stars Ajay Devgn,Kareena Kapoor along withMithun Chakraborty, ArshadWarsi, Tusshar Kapoor,Shreyas Talpade, KunalKhemu, Ratna Pathak,Jhonny Lever, SanjayMishra, Vrajesh Hirjee andAshwini Kalsekar.
Commenting on the open-ing, Nandu Ahuja, Sr. VP,Distribution, ErosInternational Media Ltdsaid, "It's a very proudmoment for us as GOL-MAAL 3 opened at 80% -90% occupancy across thecountry. Moreover, the longDiwali weekend helpeddraw in large footfalls intheatres.
Aamir Khan starrer 3Idiots bagged five hon-ours at the first
Chevrolet Global Indian MusicAwards (GIMA), a grand affairwith legends like LataMangeshkar, Asha Bhoslealong with Salman Khan andKareena Kapoor gracing theevent.
Director Rajkumar Hirani'ssuperhit film won awards forbest engineer for BishwadeepChatterjee and Anup Dev; bestlyricist for Swanand Kirkire;best playback singer for Shaanand Shantanu Moitra; mostpopular song on Red FM for AllIzz Well; and best film album.Held Wednesday at the YashRaj Studios in Andheri West,GIMA is an initiative ofWizcraft InternationalEntertainment to honour talentacross film and non-film music.
Singing legend Asha Bhosle,
who is also the goodwillambassador of GIMA, kickedthe event off with non-filmsong Allah Rakha.
After that the awards wererolled out. Iktara from WakeUp Sid scored a hattrick bywinning awards for best play-back singer for Kavita Seth,HT Reader's choice singer ofthe year and best film song.
One of the main highlights ofthe event was the best devo-tional album trophy awarded toIndia's Nightingale LataMangeshkar, her first everaward in a non-film category.
"I'm very grateful to peoplefor giving me this award. Thisis my first non-film awardever. I never got an award inthis category earlier, so this istruly special," said Lata, whogot the award for her rendi-tions in the album SriHanuman Chalisa.
Aamir Khan hasannounced that hewould next be working
with Reema Kagti on the yetuntitled suspense drama. Whilethe film's leading ladies (thereare two in the film) are yet tobe revealed, it is being said thatthis joint production of FarhanAkhtar-Ritesh Sidhwani andAamir Khan would be readyfor release by end of 2011.
The makers of this film arealso the ones behind ShahRukh Khan's DON 2 (which isalso being directed by FarhanAkhtar), which is all set for23rd December release. Thismeans that it could well be thecase of a little too much for theproduction house as well torelease two of their major filmsaround the same time.
"I can't really be commentingon this actually", Reema main-tains her distance from the pro-
duction matters, "The releaseplans are still being talkedabout and I don't know theexact timeline of the film'srelease. Yes, there are talksabout releasing it before end of2011 but let's see."
However, the fact stillremains that suspense dramasare not known for being opu-lent affairs which means thatthis Aamir Khan film could bepossibly smaller in comparisonto his other films in the past. Ofcourse all of this is still a spec-ulation and the best person tocomment upon the scale of thefilm would be Reema.
"Well, yes you are right; it isfutile to speculate. Also, it ishard to quantify things in themanner you state. All I can sayat this point is that the filmwould be good enough to com-pete with the biggest of films in2011", says Reema.
Aamir to clashwith Shah Rukh?
Aliens attackLos Angeles
in newsci-fi film
This city has the worstluck. Through decades ofdisaster films, Los
Angeles has been targeted byaliens, toppled by temblors,sunken by tsunamis, leveled bylava, and a rogue tornado oncetook out the Hollywood sign.
And so it will be that calamityagain strikes the City of Angelsin the new sci-fi film "Skyline,"opening Friday, followed byanother bout of destructionearly next year in the movie"Battle: Los Angeles."
What is it about L.A. thatinvites such repeated devasta-tion?
"People love watching LosAngeles get destroyed," says"Battle: Los Angeles" directorJonathan Liebesman. "It's niceto screw up the great weather."
But there's so much more to itthan that.
The city is home toHollywood and the movie busi-ness, so the artists who writeabout, direct and execute massdestruction in Los Angeles areoften intimately familiar withthe territory.
Production designer JacksonDe Govia — who helped blowup the Beverly Center shoppingmall and decimate WilshireBoulevard's museums in 1997's"Volcano" — says he lovestrashing his own city on film.
"One of the funnest thingsyou can do in movies is blowstuff up," says De Govia, whoalso pulverized Nakatomi Plazain the original "Die Hard." "Andif you're blowing up your home-town, and that hometown is LosAngeles, it's even better,because who hasn't wanted todo that at times?"
"It allows the scale of the dis-aster to strike everybody," hesays. "Everybody recognizesthe Hollywood sign. It's like,'Oh, that's big.'"
KARACHI: – Models walking on the ramp to display the dresses during the fashion week. APP
KARACHI: Models display dresses by country’s famous designers during thefashion week in Karachi.-APP
3 Idiots triumphsat GIMA awards
M Imran Sharif
KARACHI: Established brand, Ali JaveriJewelers, a well-known name in the traditionalPakistani family business with a strong loyalclientele, recently celebrated the launch of theirsecond outlet at the upscale retail hub ofZamzama. The Jewelry show held at Baan ThaiRestaurant Zamzama and Photographs taken byArsalan Bilgrami.
The launch was organized by Catwalk EventManagement and Managed by Catalyst PR &Marketing.
The glitterati of the city including prominentpoliticians and the media joined friends andfamily of Ali & Afroze Javeri, the entrepreneur-ial couple behind the long-running venture, inthe festivities that were held at the premises.Specializing in diamond, the latest collection isstacked with the usual stunningly flawless bril-liance that their patrons have come to expectfrom them.
Having made a name for herself as the leadingkundan and bridal jewelry designer, Afroze isnow incorporating her own style into the collec-tion. The complete range of exquisite diamondjewelry, from rings, earrings, pendants,bracelets, bangles to complete sets had thewomen in awe. A few even lined up to try on adiamond ring or two!
A fashion show was organized at the launchparty. Supermodel Iraj dazzled in Ali's exclusivesets. So did models Neha, Sadaf, Aayan, Zeband Hira who enthralled the audience at the cat-walk.
Numerous well-known well-wishers were athand to greet Ali and Afroze at their hard earnedsuccess. These included Ms. Sharmila Farooqi,Advisor to the Chief Minister of Sindh, MsNasreen Jaleel, ex-Naib Nazima, CDGK, Mr.Didier Boschung, Consul General ofSwitzerland, Rukkiya Adamjee, socialites Mrs.Ashfaq Bardi, Hina Roger Bayat, SyedaLeghari, Shazia Hasan Sardar designers Mrs.Huma Amir Adnan, Sonya Batla, and prominentbusinessmen, including Mr. Zafar Moti.
Thanking his admirers for showing up in num-bers at the launch, Ali said, "The people you seehere today are testament to the hard work thatwe've put in our service and quality. Our workhas been exhibited all across the globe, includ-ing the US where we've participated in a numberof conventions, including the Apna convention."
Afroze added, "Ali Javeri Jewelers is a well-known established brand name where customersatisfaction is the primary goal. We have incor-porated, with time, the changing needs of thePakistan's new generation, catering especially tothe modern Pakistani woman."
Ali Javeri Jewelers is located on SecondZamzama Lane, DHA Phase V, Karachi.
Ali Javeri Shinesat Shop Launch
Imoved into a new house afew months ago, and fortwo whole weeks, I stood
staring at a blank space onmy wall, trying desperatelyto figure out what should gothere. Finally, I realized thatmy problem was that I wasthinking too small; I wasthinking about a painting or apicture frame, when I shouldhave been using my creativeside to fill in the blanks.
Paintings and pictureframes are great additions towalls, but there are otheroptions as well. If you're justa little handy by which Imean, you can use a hammerat least half the time, you canmake unique wall decora-tions that will be the envy ofyour friends and a joy in yourhome.
When I was still in myteens, my maternal grandpar-ents died. We were veryclose to them, and my moth-er had an especially hardtime with their deaths. So, inmy mother's grief, wisdomand creativity, she createdshadow boxes for our familyof her parents. We went toantique stores and found olddomino sets and handker-chiefs and other items thatreminded us of our lovedones and created shadowboxes that now hang in theentry ways of their homes.The boxes decorate the wallsbut they also symbolize thelove and legacy left by those
we love.If you love blankets or
quilts, there are some veryunique ways to decorate yourwalls with the items. This iswhere the hammer comes in,by the way. You can actuallytake pieces of wood attachedto your wall, drill holes inthem, and put dowel rods inthe holes. On these rods youcan hang your quilts or blan-kets just like you can on aregular quilt rack, except thisway they decorate yourwalls. Placing the items justabove a sofa is a great way tokeep blankets nearby when
you watch movies or snuggleup next to the fire. Also, ifyou enjoy quilting or sewing,you may want to use a simi-lar structure on the wall tohold bolts of fabric for yourcreations. The walls looklovely, and you're also organ-izing your home!
Here are just a few otherideas. You can use old win-dows and some curtains tomake a faux window in aroom without enough win-dows. Your can use old pic-ture frames to "frame" an oilpainting or collage or quota-tions. Using small vases, you
can have fresh flowers hang-ing on your wall. You couldalso make part of your wallinto corkboard or a set of boxframes so that you can dis-play your children's artwork.
However you choose todecorate your walls, create aroom that will be enjoyablefor all. When a room fits thepersonality of you and yourfamily, then anyone who vis-its will feel comfortablespending time with you. Yourcomfort is equivalent to yourguests' comfort, so enjoyyour home and your friendswill enjoy it too.
Beautifying Your Walls
KARACHI FASHION WEEK
9Saturday, November 13, 2010
POLYPROPYLENE(PP) LINEAR LOW (LL)
Cash & Settlement 1300 1240
October (3rd Wednesday) 1310 1250
November (3rd Wednesday) 1320 1260
LONDON METAL EXCHANGE (PLASTIC)
LME Official Prices, US$ per tonne for November 11 2010
LME Official Prices, US$ per tonne for November 11 2010
ALUMINIUM ALUMINIUM COPPER LEAD NICKEL TIN ZINC NASAAC
LONDON: Oil fell towards$86 a barrel on Friday, slippingfrom a 25-month high reachedin the previous session, as con-cern about Irish debt and talkthat China may raise interestrates spurred a retreat fromriskier assets.
Attention in the oil marketrefocused on risk aversion andmacroeconomic concerns at theend of a weekwhen prices weresent higher byChinese demand ata record and USinventories plung-ing. "This priceslump can beexplained by ageneral weakness of commodityprices triggered by the strongerUS dollar and rumours of animminent interest rate hike inChina," said Carsten Fritsch,analyst at Commerzbank.
"Consequently, we are likelyto be seeing profit taking byshort-term oriented investorsprimarily."
US crude was down $1.43 abarrel at $86.38 as of 1449GMT, after touching an intra-day peak of $88.63 onThursday, the highest sinceOctober 2008. ICE Brent slid$1.24 to $87.57.
Some analysts said oil's rallyhad got ahead of itself based onfundamentals of supply anddemand.
"When you look at the funda-mentals, although improvingduring the week, they are notreally supporting a very strongincrease in oil prices as wehave had," said ChristopheBarret of Credit Agricole.
The euro bounced from six-week lows against the dollar onFriday as EU leaders sought to
reassure nervous bondholdersand on speculation, quicklydenied, a rescue package forIreland was being hammeredout.
The International EnergyAgency, an adviser to 28industrialised countries, onFriday predicted a slowdownin the rate of growth in globaloil demand next year, while
raising itsforecast for2010.
C o n c e r n sabout Irelandovershadoweda Group of 20leaders' sum-mit in Seoul,
where a breakthrough onresolving global economicimbalances amid incongruentpolicies looked unattainable.
Oil had rallied for most ofthe past two weeks, partly on aplan by the US FederalReserve to buy $600 billion inTreasury bonds to help speedeconomic growth. -Reuters
Oil drops towards $86 oneuro concerns, China talk
National Commodity Exchange Ltd Trading SummaryDate Commodity Contract Price Open High Low Close Traded Volume Previous Current Open Interest
Date Quotation in lots Settlement Settlement in Lots
Note: Traded Volume reflects the trades from 06:00 pm of previous day to 06:00 pm of current day
Tokyo,
Shanghai rubber
slump on
profit-takingTOKYO: Tokyo rubber futuresplunged 5 per cent andShanghai futures fell by theirdaily limit on Friday asinvestors grew wary of therecent rapid pace of rises andclosed positions, while sharpselling in other commoditiesalso dampened sentiment.
The key Tokyo CommodityExchange rubber contract forApril delivery settled at 360yen per kg, down 19.1 yen,after falling to as low as 357.5yen. The contract posted aweekly loss of about 0.5 percent, after last week's morethan 10 per cent gain.
TOCOM rubber futures hit30-year highs for a thirdstraight day on Thursday, whileShanghai rubber futures havebeen marking successive highsthis week as concerns over sup-ply shortages intensified specu-lative buying of the commodity,traders said. The most activeShanghai rubber futures con-tract for May delivery closedlimit down at 35,790 yuan pertonne on Friday, down sharplyfrom a record high of 38,920yuan ($5,871) per tonne markedon Thursday. Volume stood at34,184 lots, as the contract hitlimit down soon after the open,compared with 1.84 million lotson Thursday. -Reuters
NEW DELHI: Indian farmers shout slogans against government as they march to
Parliament House during a demonstration. Hundreds of farmers protested against
alleged anti-farmer policies imposed by the state and central governments and
higher compensation for their land acquired. -Agencies
NEW YORK: US cottonfutures closed lower onThursday for the second dayrunning due to investor salesand profit-taking, pressured bylower Chinese cotton prices asthe trade mulled whether thefour-month long rally is finallyat an end, analysts said.
Cotton prices had been rally-ing since July and hit levelsthis week that have not beensince the US Civil War in the19th century. Chinese cottonprices limit down, weighs onNew York Despite selling offin the last two sessions.
The benchmark March cottoncontract on ICE Futures US fell
1.93 cents to end at $1.3918 perlb, dealing from $1.3666 to$1.428. The spot December cot-ton futures lost 1.44 cents to endat $1.4421. Late index fundrolling narrowed the differ-ence between the two con-tracts and pushed Decemberinto negative territory.
The primary catalyst for thefall on Thursday in US cottonvalues were sharply weaker cot-ton prices in China during Asiantrade. The ZhengzhouCommodity Exchange's Maycotton contract was last tradedThursday at the session low of31,345 yuan per tonne, down1,650 yuan on the day.
Another major factor for thelower market was the increase incotton margins to its highestlevel since 1996, which prompt-
ed investors who have seen themarket rise nearly 32 cents thismonth to cash in their gains.
On Friday, the market will take alook at the US AgricultureDepartment weekly export salesreport to gauge demand for UScotton despite the current highprices. -Reuters
US cotton closeslower for 2nd day
LONDON: Gold pricesstayed under pressure onFriday, drawing scant benefitfrom a slide in the dollar, astalk of an EU rescue packageto tackle Ireland's debt woesremoved some safe-havendemand from the market.
Spot gold was bid at$1,392.24 an ounce at 1433GMT against $1,409.39 latein New York on Thursday, offa session low of $1,378.00 anounce. US gold futures forDecember delivery fell$10.10 an ounce to$1,393.20.
Prices slipped sharply inearlier trade as concerns thatIreland would, like Greece,need a bailout knocked theeuro, and as it was caught upin selling of assets seen ashigher risk amid talk of aChinese rate hike.
The precious metals lifted
from lows as the dollarslipped lower, but has failedto make much headway afterEU leaders sought to reassurebondholders over the value oftheir assets.
A statement from France,Germany, Italy, Spain andBritain issued at the Group of20 summit in Seoul, saidbondholders would not beforced to write down thevalue of their bond holdingsin the event of a new euro-zone bailout.
The euro rose from a six-week low against the dollar
after European leaders soughtto reassure investors.
Meanwhile major Europeanstock markets were lowerafter a weak session in Asiawhich notably saw the
Shanghai composite indexfall 5 per cent, its biggest one-day drop since May, on talkof another Chinese interestrate hike.
G20 leaders drew a veilover their economic policydisputes on Friday, agreeingto tackle tensions that haveraised the spectre of currencywars and giving the nod to
countries that have seen hugecapital inflows to imposecontrols.
On the physical side of themarket, Indian gold tradershunted for bargains afterprices retreated from recordhighs, stocking up for wed-dings in the world's biggestbullion consumer.
Interest in investment vehi-cles like exchange-tradedfunds was soft, however, withholdings of the world's largestgold-backed ETF, New York'sSPDR Gold Trust, falling byjust under 1 tonne onThursday.
Among other precious met-als, spot silver was bid at$27.24 an ounce against$27.75, while platinum was at$1,710.74 an ounce against$1,752 and palladium was at$699.72 against $709.72. -Reuters
Gold under pressureas EU debt fears ease
KUALA LUMPUR:Malaysian crude palm oilfutures on Friday eased frommore than two year-highs hitthe previous day, on concernsof higher China inflation and abroader selloff in commoditieslinked in part to Irish debtwoes.
China's Oct inflation hit a25-month high, leaving littledoubt about why the centralbank raised reserve require-ments this week and indicat-ing further tightening stepsmay be in the offing -- a movethat may slow commoditydemand.
"China and Europe are giv-ing very good excuses forplayers to take profit after thestrong rally," said a Malaysiantrader with a foreign broker-age. The benchmark January2011 contract on the BursaMalaysia DerivativesExchange dropped 1.3 percent to 3,353 ringgit ($1,077),after going as low as 3,269ringgit -- the lowest since
Nov. 8 and coming off a 27-month high hit on Thursday.
Overall traded volumealmost tripled to 29,159 lotsof 25 tonnes each.
However, worries overheavy showers in Malaysiacontinued to support prices askey palm producing states arelikely to be hit by a secondwave of monsoon rains thismonth and in December.
Lee Yeow Chor, executivedirector of IOI, the world'sthird largest listed producer ofthe vegetable oil estimatedpalm oil prices at 3,000 ring-git per tonne, and said priceswill extend their rally intomid-2011. Other vegetable oilmarkets also fell in the broad-based selloff, led by crude oiland industrial metals.
US soyoil for Dec deliverytumbled 3.5 per cent. Themost active September 2011soyoil contract on China'sDalian commodity exchangehit limit down of 4 per cent. -Reuters
Palm sheds 3pc; Chinasoyoil limits down
Sugar logssharp losses;Coffee slips
LONDON: Sugar futures fellsharply on Friday after a sur-prise move by the EuropeanUnion to boost exports andbroad-based losses in commod-ity markets driven by talk thatChina may raise interest rates.
Coffee and cocoa prices alsofell, joining many other com-modities in negative territoryincluding base metals, preciousmetals, grains and crude oil.
Raw sugar futures on ICEhad started to fall back onThursday after scaling a 30-year high for the front monthearlier in the session.
March raws on ICE dipped aslow as 27.61 cents beforerebounding to 28.12 cents by1605 GMT, still down 1.54cents or 5.2 per cent.
White sugar futures on Lifferegistered a steeper declinethan raws on Friday as the mar-ket caught up with a secondsharp downward move by ICEraws on Thursday, when Liffewas closed.
December whites slid to$707.60 a tonne in early tradeas a wave of stops was trig-gered before recovering to$745.60, down $51.70 or 6.5per cent at 1606 GMT.
Arabica coffee futures onICE also fell, with March down3.55 cents or 1.7 per cent at$2.0595 per lb. The contracthad climbed as high as $2.2145on Wednesday, a 13-1/2 yearhigh for the second month.
Dealers said the market hasbecome overbought after asteep run-up in prices butremained underpinned by sup-ply concerns following severalyears of below-par crops inColombia.
Robusta coffee on Liffe fell,with January down $41 or 2.1per cent at $1,890 a tonne.
Cocoa futures were sweptlower in the broad-baseddecline, with the March con-tract on ICE off $79 or 2.8 percent at $2,787 a tonne and LiffeMarch down 33 pounds or 1.8per cent at 1,838 pounds atonne. -Reuters
NY cotton early-tradeThe benchmark March cotton
contract on ICE Futures US fell the5-cent trading limit to $1.3418 perlb. The session high was $1.3655.
CASTOROIL: Any origindlrs tonne extank RotterdamNov10/Dec10 1925.00+0.00. -Reuters
LONDON: Copper fell onFriday, receding from the pre-vious session's record high tohit a one-week low on talk ofan interest rate hike in top con-sumer China, but analysts saidgood fundamentals supportedthe metal longer-term.
Benchmark copper on theLondon Metal Exchangeclosed at $8,615 a tonne, downfrom a close of $8,830. It fell toas low as $8,575, its lowestsince Nov.4.
Zinc fell as much as 7 percent to $2,365.25 a tonne, itslowest since Oct 19, whilenickel fell more than 6 per centto $22,500 a tonne, matching alow hit on Sept. 24.
Copper rose some 2 per centon Thursday to an all-timepeak of $8,966 a tonne, sur-passing levels hit in the com-modity boom before theLehman collapse in late 2008that heralded a stinging globaleconomic downturn.
Commerzbank analystDaniel Briesemann said con-cerns about potential furtherChinese monetary policy tight-ening were knocking metals,but he said the fears would sub-side. "This should only beshort-lived," he said. "Even ifthey hike interest rates furtheror implement even more ener-gy-saving measures, thisshould only have a short-termeffect on base metals demand,"he said of China.
Markets were also jittery dueto concerns about sovereigndebt in the euro-zone. The eurorose having earlier hit six-weeklows versus the dollar.
Ireland's finance ministrysaid on Friday it is not in talksto apply for emergency funding
from the European Union,reacting to comments fromeuro-zone sources that discus-sions had begun.
Copper volumes were at theirthird highest ever, nearing28,000 lots.
Meanwhile, supply concernshave underpinned copperprices, with week-long strikeaction possibly threatening tocurtail output from the world'sNo. 3 copper mine, Chile'sCollahuasi.
Across other metals, zincclosed at $2,394 a tonne, ver-sus its $2,542 close.
China sold almost all of the50,000 tonnes of zinc up forsale at an auction of statereserves on Nov 9, with anaverage sale price of 19,511yuan per tonne.
Aluminium was at $2,404 atonne versus $2,458, whilelead was at $2,520 a tonnefrom $2,610. Lead, whichtouched a low of $2,485 atonne, had hit a ten-month highof $2,650 on Thursday.
Tin was last quoted at$26,150/26,175 a tonne, fallingfrom $27,000, and nickelclosed at $22,700 a tonne from$24,000, weighed by risingstocks and a dearth of demandfrom key consumers in thestainless steel sector. -Reuters
Copper knocked byChinese rate woes
Shanghai metals
limit downBenchmark third-month
Shanghai copper closed 5per cent down at its down-side limit at 65,340 yuan.Shanghai Zinc ended on itsdownside limit at 19,680yuan from Thursday's set-tlement.
GUANGZHOU: The AsianGames officially opened with aglitzy gala cere-mony onFriday, culmi-nating years ofplanning for amassive eventthat is set to rein-force China'sregional sportingdominance.
The extravagan-za heralds the mostambitious Asiad sofar with more than14,000 athletes andofficials from 45countries and territo-ries angling for gold in 42 sports.
The Games run untilNovember 27, with hosts Chinaheavily favoured to top themedal table, with South Koreaand Japan battling for secondplace.
"After six years of hard work,I am pleased to announce thatthe preparatory work of the 16th
Asian Games has
been complet-ed," said Guangzhou vice mayorXu Ruisheng.
Security forces mounted asweeping operation to isolate thefenced-off venue for Friday'sopening ceremony, on an islandin the Pearl River, with ChinesePremier Wen Jiabao due toattend.
But as dusk fell over the citythousands of people streamed to
the spectacularsetting near thegiant CantonTower aheadof the start.
southern metropolis ready.While the city does not have
the glamour of Beijing andShanghai, officials here are hop-ing the Games will help trans-form it into one of Asia's top des-tinations.
In preparation, it hasembarked on several huge infra-structure projects - a new railstation, a gleaming trade centre,subway lines, housing projects,highways and bridges. It has
also constructed or renovated 70sporting facilities.
Security is a major focus, withmore than 100,000 police offi-cers on duty to keep it safe,along with hundreds of thou-sands of security guards andvolunteers.
"As the Guangzhou AsianGames will have the mostever athletes, officials andreporters in the history ofthe Asian Games, the secu-rity work has been a greatchallenge," a statementfrom the Games securitypanel said.
"The security panel has adopt-ed effective and necessary meas-ures to ensure a safe Games. Wehave done our best toprovide a safe andfavorable environmentfor athletes, coaches, offi-cials and audiences."
It all kicks off with theopening ceremony and in achange to standard proce-dure the show, beamed to atelevision of audience of bil-lions, will be held on an islandin the Pearl River rather than astadium.
Organisers promise thelargest lighting show ever seenat a major sports event, basedaround a theme prominently fea-turing the local Lingnan culture.
Film starlet Zhang Ziyi andworld-renowned pianist LangLang will perform together inone of the highlights of theshow.
"All chapters of the per-formances will be linkedtogether under the theme ofwater, which is a tradition-al element of Lingnan cul-ture," said He Jiqing, the cere-mony's deputy director.-Agencies
10Saturday, November 13, 2010
Red Bull driver Mark Webber of is seen during thefirst session of the Abu Dhabi F1 Grand Prix
Preity-XIchallenges
BCCI’sdecisionin courtMonitoring Desk
KARACHI: Kings XI Punjab,owned by a consortium led byactor Preity Zinta and industri-alist Ness Wadia, has filed anarbitration petition in BombayHigh Court challengingCricket Board's decision to ter-minate their IPL franchise con-tract.
The move of Kings XI comesclose on the heels of ShilpaShetty's Rajasthan Royals chal-lenging a similar decision ofthe BCCI in the High Court.
BCCI had recently terminat-ed the franchisees of Kings XIPunjab and Rajasthan Royalson the ground that they hadchanged the shareholding pat-tern without informing theBoard or IPL GoverningCouncil.
Calling the termination oftheir franchise contract as a"deliberate and calculated"move, Kings XI contended inthe petition that BCCI hadtaken this decision becausethey wanted to make largeprofits by seeking new bids asthe value of franchisees hadgone up considerably.
GUANGZHOU: The OlympicCouncil of Asia (OCA) hasdecided to provide financialsupport to some of its NationalOlympic Committees, includ-ing Pakistan and DPR Korea.
On the initiative of OCAPresident Sheikh Ahmad Al-Fahad Al-Sabah at the 56thOCA Executive Board meetingon Friday morning, it has beendecided that the OCA willcome to the aid of needy NOCsin financially-troubled coun-tries and regions.
He in this regard mentionedPakistan and DPR Korea in par-ticular, and also central Asia.
"We will work very closelywith the International OlympicCommittee, OlympicSolidarity and our FinanceCommittee to allocate somefunds and how much we cangive them," said SheikhAhmad. "They face crisis andthey need our support," heremarked.
The Executive Boardapproved the initiative, and thisbrought an emotional responsefrom Lt. Gen. Syed Arif Hasan,OCA vice president for SouthAsia and President of thePakistan OlympicAssociation.-APP
Asian OlympicCouncil to assist Pak
SEOUL: British PrimeMinister David Cameron plansto attend the FIFA vote nextmonth when world soccer'sgoverning body decides the fateof England's bid to host the2018 World Cup.
Cameron is intensifying hisefforts to back the bid, talking itup during meetings with worldleaders at the G20 summit he isattending in South Korea.
England faces strong compe-tition from Russia and jointbids from Spain/Portugal andBelgium/the Netherlands.
"The prime minister wants tooffer the strongest possible sup-
port for what he thinks is anexcellent bid," his spokesmantold reporters.
FIFA's executive committeewill select the hosts of both the2018 and 2022 World Cups at atwo-day meeting in Zurich, fin-ishing on Dec 2.
Cameron held a 30-minutemeeting with Chung Mong-joon, FIFA vice-president andpresident of Korea's FA, at theBritish ambassador's residenceon Thursday.
Cameron joked that he wasspending more time on theWorld Cup than on core G20issues at the summit.
The prime minister is arguingthat England already has world-class stadiums in place, reduc-ing the costs involved at a timeof sharp public spending cuts.
England last hosted theWorld Cup in 1966, winningthe tournament for the onlytime, and staging the eventagain would be a morale boostfor English fans.
Cameron told RussianPresident Dmitry Medvedevthat he looked forward to a"good, clean fight" when theissue of their rival bids came upat a bilateral meeting onThursday.-Reuters
UK’s PM pushesEngland WC bid
DUBAI: Graeme Smith's 22ndtest century set South Africa ontheir way to a formidable 311for three at the close of the firstday of the first test againstPakistan at the DubaiInternational Cricket Stadiumon Friday.
Smith, who reached his half-century off 93 balls from thefirst ball after lunch, neededjust another 58 deliveries tobring up his century as helooked to take the attack to thebowlers during the day's mid-dle session.
However, the left-hander whostruck eight fours during hisknock, departed to the next ballthat he faced after reaching histon when his attempted pullshot off left-arm swing bowlerWahab Riaz was caught byTaufeeq Umar on the deep mid-wicket fence.
Smith and Alviro Petersenhad combined for a first-wicketstand of 153, with Petersenweighing in with 67 in aninnings that included nine fourson a wicket which offered verylittle assistance to the pacemenor the spinners.
But Petersen succumbedtamelyt fashion when he pulleda long-hop from left-arm spin-ner Abdur Rehman to YounisKhan at midwicket where thefielder took sharp, one-handedgrab.
Smith departed with the scoreon 190 but if the hosts thoughtthat the dismissal of SouthAfrica's captain would let themback into the match they wereto be disappointed as HashimAmla and Jacques Kallis put on117 for the third wicket.
The partnership was endedshortly before the close of play
when Amla, who scored 80 off152 balls, edged a deliveryfrom Riaz through to debutantwicketkeeper Adnan Akmal.Kallis was unbeaten on 53 atthe close.
Pakistan's best period withthe ball came during the firsthalf hour.
In a near empty stadium,Petersen and Smith were testedby a fine new ball spell fromswing bowler Umar Gul.
Petersen survived a confidentcaught behind appeal off thebowling of Gul when he hadscored just nine.
Smith was also troubled bythe same bowler, with the left-hander playing and missing ona number of occasions at thestart of his innings. He eventu-ally settled in to take fulladvantage of his decision to batafter winning the toss.-Reuters
Smith’s ton makesthe day for Proteas
DUBAI: Graeme Smith raises bat and helmet as he celebrates after scoring century 100 runsagainst Pakistan during the first Test match between Pakistan and South Africa.-Reuters
PCBgrounds 5
stars for WCLONDON: Pakistan haveprovisionally agreed not toselect five players for nextyear's World Cup on the sub-continent as they seek tocome clean on match-fixingcharges against some of theirstars.
Former Test captain SalmanButt, fast bowlers MohammadAsif and Mohammad Aamer,wicketkeeper Kamran Akmaland leg spinner DanishKaneria have been blacklistedin response to last month'sultimatum by the ICC, whogave the Pakistan CricketBoard 30 days to take a firmstance against corruption.
According to the Daily Star,Akmal has been under inves-tigation for his role inPakistan's controversialdefeat by Australia inJanuary's Sydney Test.
On the other hand, Kaneriawas recently cleared by policeover allegations of spot fix-ing, but has not been offered anew contract by Essex.-APP
Yousufruled out oftest series
DUBAI: Veteran Pakistan Testbatsman Muhammad Yousufhas been ruled of the two-Testmatch series against SouthAfrica which commenced hereFriday, Pakistan ManagerIntikhab Alam told reporter inthe afternoon.
Pakistan suffered a blowbefore the start of the firstcricket Test when Yousufpulled out the match becauseof groin problem. Yousuf willnot be able to take any furtherpart in the series, he said.
"Its big set-back for usbcause Yousuf was an experi-enced campaigner and couldhave been supported thePakistan middle order bat-ting," Intikhab said. He saidDr.Faisal was treating him hasdeclared him unfit.
"It will take about two weeksto heal the injury. We are notcalling for any reinforcement,"he said. 35-year oldMuhammad Yousuf name wasin the original sheet released tothe media by the officials butlater he was withdrawn fromthe team because of the grointrouble.-APP
China ensures a festivestart for Asian Games
Four SNGPLplayers inTest squad
KARACHI: Misbah ul Haq(Skipper), Mohammad Hafeez,Umar Akmal and AdnanAkmal; all belonging to SuiNorthern Gas Pipelines(SNGPL) Cricket Team are cur-rently playing in Pakistan testsquad, and this remains more ofan honour for the organisation.
Based on their current formand performance in the domes-tic season, they have beenincluded in the national side.Adnan Akmal is given test capin place of Zulqarnain Haider.The management and employ-ees of Sui Northern Gas con-gratulates these players.-PR
11Saturday, November 13, 2010
International & Continuation
CONTINUATION
LONDON: Global oil demandgrowth will slow in 2011 aftera brief, accelerated burst at theend of this year, theInternational Energy Agency(IEA) said in its monthlyreport on Friday.
Rising consumption indeveloped industrialeconomies and rapid Chinesegrowth caused the IEA to liftits 2010 oil demand growthforecast by 190,000 barrels perday (bpd) to 2.34 million bpdfrom its previous report.
But it trimmed slightly its2011 forecast.
Overall, global oil demandwill still be higher next year at88.51 million bpd comparedwtih 87.32 million bpd this year.
"Across the board in theOECD, we've seen strongerdemand. The thing is we thinkthat that these upwards revi-sions are transient," said DavidFyfe, head of the IEA's oilindustry and markets division,referring to countries withinthe Organisation for EconomicCo-operation andDevelopment.
The report cited buying ofheating oil stocks in Europeahead of winter as a factorbehind the demand growthhike and robust Chinesedemand for distillates likediesel.
But Chinese fuel switching
from oil back to coal for powergeneration with the new five-year plan will likely temperconsumption beyond the firstquarter of 2011, the report said.
Next year, oil demandgrowth will slow to 1.19 mil-lion bpd -- a dip of 20,000 bpdfrom the previous report -- theIEA said.
Earlier this week, theOrganization of the PetroleumExporting Countries (OPEC)revised up its 2011 demandgrowth forecast by 120,000bpd in its monthly report.
The better demand has led toa drawdown in OECD oilstocks which fell by a day to59.9 days of forward cover inSeptember from the previousmonth, according to the IEA.
Crude oil held in floatingstorage fell by 10 million bar-rels to 32 million barrels by theend of October from the previ-ous month as Iranian crudetankers were unloaded, thereport said.
"Things are a bit less floppyin the market than they wereand you can see the price run-up in those terms," said Fyfe.
Oil prices rose to more thantwo-year peak of $88.63 a bar-rel the previous session but by1236 GMT on Friday, theywere down $1.57 at $86.24 abarrel from the last close.-Reuters
Brief oil demandburst will fadenext year: IEA
BRUSSELS: Euro zone eco-nomic growth slumped in theJuly-September period versusthe previous quarter and is likelyto slow further as the divergencebetween robust Germany andthe weaker euro zone peripherygrows.
The European Union's statis-tics office, Eurostat, said grossdomestic product in the 16 coun-tries using the euro grew 0.4 percent in the third quarter against1.0 per cent in the second threemonths. GDP expanded 1.9 percent year-on-year.
Economists said the risk ofanother recession was small, butgrowth could slow to a quarterlyrate of 0.2-0.3 per cent in thecoming quarters and annualgrowth should ease to 1.1-1.4per cent next year from anexpected 1.7 per cent in 2010.
"We expect euro zone growthto be muted over the comingmonths in the face of seriousheadwinds, most notably signifi-cant fiscal tightening increasing-ly kicking in, slower globalgrowth and recurrent sovereigndebt problems," said HowardArcher, economist at IHS GlobalInsight.
The slowing growth was also
signalled by industrial produc-tion in September which defiedmarket expectations of a smallmonthly rise and fell 0.9 percent, cutting the annual increaseto 5.2 per cent against expecta-tions for 7.1 per cent.
"The September weaknessimplies a weak carry over intothe fourth quarter, suggesting acontinuation of the growth slow-down," said Ken Wattret, chiefeurozone market economist atBNP Paribas.
The third quarter expansionwas mainly thanks to continuedrobust growth in the euro zone'sbiggest economy, Germany,which grew 0.7 per cent on thequarter, for a 3.9 per cent year-on-year rise. The second biggest,France, saw GDP growth of 0.4per cent quarter-on-quarter and1.8 per cent year-on-year.
"In the coming quarters...ten-sions will continue to mountbecause the German economylooks set to outperform the restof the euro zone for years tocome," said Christoph Weil,economist at Commerzbank.
He said that while budgetdeficit cuts will be a significantburden on demand in the eurozone periphery -- Greece,
Also, the German economyhad substantially improved itscompetitiveness in the last fewyears, while other euro zonecountries did not, he said.
In Greece which needs eco-nomic growth to convince mar-kets it will be able to repay itsdebts, the economy shrank 1.1per cent on the quarter, for a 4.5per cent annualised fall.
"National divergence is, andwill remain, a key theme when itcomes to growth in the eurozone. We continue to expectGermany to outperform, whilethe fiscally distressed economiesin the periphery will suffermost," Wattret said.
Portugal, which like Greecehas introduced tough austeritymeasures to regain market trust,surprised economists on theupside with 0.4 per cent quarter-ly growth.
But the better Portuguesegrowth came from strongexports, while domestic demandis likely to have suffered fromthe budget austerity steps.-Reuters
Euro zone growthslows in third
quarter, outlook dims
SEOUL: G20 leaders closedranks on Friday and agreed to awatered-down commitment towatch out for dangerous imbal-ances, yet offered investors littleproof that the world was anysafer from economic catastrophe.
After an acrimonious start, thedeveloped and emerging nationsagreed at a summit in Seoul to setvague "indicative guidelines" formeasuring imbalances betweentheir multi-speed economies but,calling a timeout to let temperscool, left the details to be dis-cussed in the first half of nextyear.
European leaders broke awayfor their own mini gathering inthe middle of the summit to dis-cuss a deepening credit crisis inIreland, a stark reminder that theconsequences of the worst finan-cial crisis since the GreatDepression still posed a seriousthreat to global stability.
In a communique signed off atthe end of the gathering, thegroup's fifth since the financialcrisis exploded in 2008, therewas a little something for every-one.
Leaders vowed to movetowards market-determinedexchange rates, a reference toChina's tightly managed yuanthat the United States has longcomplained is undervalued.
They pledged to shun competi-tive devaluations, a line address-ing other countries' concern thatthe US Federal Reserve's easy-money policy was aimed at
weakening the dollar. In a nod to emerging markets
struggling to contain huge capitalinflows, the G20 gave the okayto impose "carefully designed"control measures.
They also agreed that there wasa critical, but narrow, window ofopportunity to conclude the long-elusive Doha round of trade lib-eralisation talks launched in2001.
But there was no mention ofIreland, and the bland promisesto deal with imbalances did notappear substantive enough tobring about any real shift. TheInternational Monetary Fundwarned that gaps between cash-rich exporters and debt-ladenimporters was widening to pre-crisis levels.
"The work that we do here isnot always going to seem dra-matic," US President BarackObama told a news conferenceafter the summit.
"It's not always going to beimmediately world-changing.But step by step what we'redoing is building stronger inter-national mechanisms and institu-tions that will help stabilise theeconomy, ensure economicgrowth and reduce some ten-sions."
Global financial markets werenot moved by the outcome of theG20 summit as it offered fewconcrete measures to changeeconomic policy. Investors wereinstead focused on the fiscal cri-sis in Ireland.
After weeks of verbal jousting,the United States and Chinasought to bury the hatchet overrows about China's "underval-ued" currency and the globalrisks created by the US printingmoney to reflate its strugglingeconomy.
"Exchange rates must reflecteconomic realities ... Emergingeconomies need to allow for cur-rencies that are market driven,"Obama said. "This is somethingthat I raised with President Hu(Jintao) of China and we willclosely watch the appreciation ofChina's currency."
The G20's accord sought torecapture the unity that wasforged in crisis two years ago,but deep divides meant the lead-ers could not venture muchbeyond what was already agreedby their finance ministers lastmonth.
Negotiators had laboured untilthe early hours of the morning tothrash out an agreement theirleaders could all endorse, despitesharp disagreements that were onpublic display in the days beforethe meeting.
"This hasn't been a love-fest,"an official who participated in thenegotiations said.
In particular, the leaders wereunable to reach a consensus onhow to identify when globalimbalances pose a threat to eco-nomic stability, merely commit-ting themselves to a discussion ofa range of indicators in the firsthalf of 2011. -Reuters
G20 closes ranksbut skims overtoughest tasks
bill in the Senate and the bill was handed over to the StandingCommittee for Finance. Tahir Mushhadi said that it was a suicidecertificate being given to people in form of RGST. He said thatRGST was the other name of VAT. Senator Maulana AbdulGhafoor Haidry said that RGST was not less than drone attack andit would not be supported.
Continued from page 1No #1
Babar Khattak, CCPO Karachi Fiaz Laghari, DIGs, TPOs, CIDofficials and police officials attended the funeral prayers. Thepolice presented guard of honour after the funeral prayers.
Malik told journalists that the government would finalise com-prehensive security plan for the forth coming Muharram-ul-Harram. Rehman Malik appealed to the nation to show unity toeliminate scourge of terrorism from the society and urged mediato play vital role to defeat enemies of the country who were up toharm through subversive activities.
He said that operation has been launched in the Karachi againstthe banned terrorist organization Lashkare-e-Jhangvi.-Agencies
Continued from page 1No #2
entourage attended the banquet hosted by the government ofGuandong province and Guangzhou city leadership at the BaiyunInternational Convention Centre in honour of the guests to the16th Asian games inaugural.-APP
Continued from page 1No #3
The appeal was launched a month ago, more than quadruplingthe original $460 million sought in August as the full scope of thefloods became clear. The disaster has claimed some 2,000 lives,exposing over 20 million others to homelessness, malnutrition,risks of epidemics and loss of livelihood as the waters steamrolleddown from north to south, damaging or destroying nearly 1.9 mil-lion homes and devastating at least 160,000 square kilometres.
To another question, Farhan Haq said the UN is assessing thehealth situation in flood-affected areas and is taking measures toprevent the outbreak of any disease.The UN has said the over 2.06billion dollars appeal would cover 483 projects to be implement-ed by 15 UN organisations, the International Organisation ofMigration and 156 non-governmental organisations.
Continued from page 1No #4
and allowed millers and traders unlimited imports of raw sugarto meet demand. Traders have since booked orders for about70,000 tonnes of raw sugar, according to government officials.
Upward revision of estimates means Pakistan, which consumes4.2 million tonnes of sugar annually, may need less import next yearto meet demand. But Kayani, who attended Thursday's meeting,said they had suggested to the government that any further decisionon import should be delayed until the next assessment in February.
Sugar had rallied in the international market in recent days dueto logistical bottlenecks plaguing the harvest in top producerBrazil and the uncertainty over sugar exports by India, which isdue to make a final decision by the end of November.
Country bought or booked orders for about 1.2 million tonnes ofsugar this year after production fell to nearly 3.1 million tonnesfrom the 2009/10 crop, when many farmers switched to othercrops for more gains. The Trading Corporation of Pakistan (TCP),which issued the sugar tenders, said this week it had receivedabout 750,000 tonnes of contracted sugar this year, and expectedthe remaining quantity by end-December.-Reuters
Continued from page 1No #5
automaker of huge potential of this industry in Pakistan.He directed the Chairman BOI to stay back and discuss with
him the prospects of GAIG's operations in Pakistan. GuangzhouAutomobile Group Co Ltd, is engaged in research and develop-ment, manufacture and sale of passenger vehicles, commercialvehicles, engines and autoparts.-APP
Continued from page 1No #6
He said that under the income tax amendment ordinance, asurcharge shall be payable by every taxpayer at the rate of 10per cent of the income tax payable including the tax payableunder Part V of chapter X as the case maybe, for the periodcommencing from the time Finance (Amendment) Act 2010,till June, 30, 2011 comes into force. Surcharge shall be paid,collected, deducted and deposited at the same time and in thesame manner as the tax is paid, collected, and deposited underthe various provisions of this ordinance, he added. He said thatthis surcharge would not be payable for the tax year-2010 andprior tax years. The rate of federal excise duty has beenincreased from 1 per cent to 2 per cent under the FederalExcise Act-2005.-Online
Continued from page 1No #7
(Retd) Waraich's bank account and not the FIA as reported inthe newspapers. He said that FIA's name was wrongly men-tioned in the newspapers. The spokesman while clarifying saidthat NAB in pursuit of its inquiry had blocked the amount ofRs1686.3 million which was later confirmed by the accountabil-ity court on July 29, 2010 in its decision to prevent the wastageof public exchequer.-Online
Continued from page 1No #8
Ireland inaid talks withEU, rescue
likely: sourcesBRUSSELS: Ireland is intalks to receive emergencyfunding from the EU and it islikely the former "CelticTiger" will become the secondeuro zone country after Greeceto require a rescue, sourcessaid on Friday.
Irish borrowing costs haveshot to record highs this weekon concerns about the coun-try's ability to get a deficitswollen by bank bailouts undercontrol, as well as worries pri-vate bond holders could beforced to shoulder part of thecosts of any bailout by taking"haircuts" on their holdings.
Government officials inDublin have denied repeatedlyin recent days that they plan totap EU funds and a financeministry spokesman said afterthe Reuters story was pub-lished that Ireland had madeno application for aid.
Euro zone sources toldReuters that aid discussionswere under way, however, withone official saying it was "verylikely" Ireland would getfinancial assistance from theEU facility set up after Greecewas forced to seek aid in May.
"Talks are ongoing andEuropean Financial StabilityFacility (EFSF) money will beused, there will be no haircutsor restructuring or anything ofthe kind," one euro zonesource said. A second sourceconfirmed the talks.
The spreads between Irish10-year bond yields andGerman benchmarks haverocketed to highs of nearly 700basis points over the past twoweeks on fears of "haircuts"but they narrowed to around580 basis points after theReuters story.
The euro, which has also suf-fered from currency bloc jit-ters, came off its highs of theday to trade around $1.37.
Pressure on Irish and otherperipheral euro zone debt hadeased slightly earlier in the dayafter France, Germany, Italy,Spain and Britain issued astatement at a Group of 20summit in Seoul that con-firmed holders of existing eurodebt would not take a hit.-Reuters
The Dow Jones industrial average was down 85.83 points, or0.76 per cent, at 11,197.27. The Standard & Poor's 500 Index wasdown 13.31 points, or 1.10 per cent, at 1,200.23. The NasdaqComposite Index was down 29.44 points, or 1.15 per cent, at2,526.08. Boeing Co. also pressured the Dow, shedding 2.4 percent to $63.78 after Sanford C. Bernstein cut the stock to "marketperform," citing more potential delays for its 787 Dreamliner.Stocks have stalled in recent sessions after a two-month rally thatclimaxed last week, when the Dow and Nasdaq hit levels not seensince the collapse of Lehman Brothers more than two years ago.
Worries that Ireland may default on its debt as well as declinesin commodity prices and an unexpectedly weak outlook fromCisco Systems Inc. helped cloud the market outlook, though someinvestors said the underlying trend is strong.
"We're in a post-Fed and post-election environment, and stocksare waiting to see what the next mover is going to be," said AndyFitzpatrick, director of investments at Hinsdale Associates inHinsdale, Illinois. "In the meantime, markets are distracted byEurope and China." Reuters
Continued from page 5No #9
drop did not seem much as the index rose an aggregate 1,800points last week."
Brokers said the market was undergoing a "healthy" correctionand expected the underlying tone to remain positive because ofample liquidity in the market. "There is no change in fundamen-tal as reflected in the steady Hong Kong dollar," said Patrick Yiu,a director at CASH Asset Management. "Bullish tone still remainsin ample liquidity." Reuters
Continued from page 5No #10
communication and we are expecting them to participate in bids for the Hajigak iron ore deposit,"Shahrani said. Afghanistan put its Hajigak deposit, located west of the capital city Kabul, back upfor tender in September after taking it off the market in 2009, with promises of security for investorsdespite a worsening insurgency.
Afghanistan, seeking to exploit its untapped mineral wealth, has sought global investors to bid fora series of other mining projects as well. With the United States planning to begin a military with-drawal from July 2011, India and China along with Afghanistan's other neighbours such as Pakistanand Iran have stepped up efforts to increase influence in the unstable region. -Reuters
Continued from page 12No #11
victims of this incident". Qaim said that no Muslim can do such kind of a cowardly act and we will leave no stone unturned
to arrest the perpatrators.-Online
Continued from page 12No #12
leaders feel like they are in a retreat in the autumn woods, a press handout says. In the anteroomof this retreat, the leaders will view a showcase of traditional items as well as stuff representing mod-ern, high-tech Japan. Borrowing a slogan used for promoting Britain, it is being called "Cool Japan."Perhaps the atmosphere will be an antidote to the sometimes heated discussions at the G20 meetingin Seoul this week, where sharp divisions between China and the United States about their respec-tive currencies were on display.-Reuters
Continued from page 12No #13
UK Q3construction
outpt upby 4pc, Q2
revised downLONDON: British construc-tion output rose 4.0 percent inthe third quarter, but lower out-put in the second quarter couldlead to a downward revision ofoverall economic growth in thatperiod, official data showed.
Friday's figures for July toSeptember from the Office forNational Statistics confirmeddata published in a first readingof third-quarter GDP publishedlast month.
However, the ONS said con-struction output between Apriland June increased by only 6.8percent, rather than the 9.6 per-cent previously estimated.
"Given today's revised figuresfor construction output in Q2,ONS assesses that GDP growthin Q2 would be 0.2 percentagepoints lower," it said.
That would take Q2 growthdown to 1.0 percent, althoughthe ONS said the extent of therevision would depend onwhether there were any adjust-ments to other components ofGDP.
Construction contributedaround a quarter of the surpris-ingly robust 0.8 percent growthrecorded between July andSeptember and around half ofthe 1.2 percent annual growth inthe second quarter, although itmakes up only around 6 percentof economic output.-Reuters
NEW YORK: An Army carry team carries the transfer case containing the remains of Army SgtEdward H Bolen of Chittenango, NY , upon arrival at Dover Air Force Base, Del.-Reuters
that Presidency and its adjacent buildings have also been kept on a high alert with additional policeand Rangers contingents. Traffic has been virtually suspended and close vigilance is on, sourcessaid. Sources further added that all kinds of heavy traffic have been strictly directed to be stoppedoutside the city limits in view to avoid any untoward incident. On the other hand, Chinese detectorshave been installed on the ways in Turnol and Sihala so that goods could be screened and thenallowed to enter the city while the entire city is on a red alert.-Online
Printed & Published by Amir Abbas Ashary at DRC Printing Press for Data Research Communication (PVT) LTD, 111-C, Jami Commercial Phase VII, DHA Karachi.
SEOUL: US President Obama, South Korean President Lee and Canadian PM Harper greet
winners of the G20 SME Finance Challenge Award in Seoul.-Reuters
SEOUL: G20 leaders on Fridayendorsed tighter financial regula-tions, including tougher bank capitaland liquidity standards, to guardagainst the 'irresponsible risk-taking'which triggered the economic crisis.
The leaders of advanced andemerging economies, in a declara-tion after their Seoul summit, backedmeasures to better regulate “system-atically important financial institu-tions” -- those deemed too big to fail.
"This new framework... willensure a more resilient financial sys-tem by reining in the past excesses ofthe financial sector and better serv-ing the needs of our economies,"their statement said.
G20 leaders have been digestingthe lessons of the global financialcrisis, including the need to limit therisk of major financial institutionsfailing and sending shock wavesthrough the economy.
The lesson was learnt the hard wayafter the collapse of LehmanBrothers in 2008, which triggeredthe worldwide economic downturn.
"The global financial system cameto a sudden halt in 2008 as a result ofreckless and irresponsible risk-tak-ing by banks and other financialinstitutions, combined with major
failures of regulation and supervi-sion," the leaders said.
"Today, we have delivered coreelements of the new financial regula-tory framework to transform theglobal financial system."
Leaders endorsed new rules set bythe Basel Committee on BankingSupervision and known as Basel III,which order banks to keep more cap-ital for a rainy day.
These are scheduled to be phasedin from 2013 with banks asked tohold higher reserves by January 1,2015. The key element known ascore Tier 1 capital will be raised to4.5 per cent from two per cent.
In addition, by January 1, 2019,banks will be required to set aside anextra buffer of 2.5 per cent to "with-stand future periods of stress", bring-ing the total reserves required to 7.0per cent.
The G20 leaders reaffirmed that"no firm should be too big or toocomplicated to fail and that taxpay-ers should not bear the costs of reso-lution".
They supported a policy packageproposed by the Financial StabilityBoard to reduce the moral hazardrisks posed by systematically impor-tant financial institutions and
address the too-big-to-fail problem.Banking executives, including
Standard Chartered CEO PeterSands, have voiced concern thatBasel III could deter enterprisingcompanies.
"We have to be careful... that wedon't have unintended consequencesin terms of the impacts on the realeconomy," Sands said in SeoulThursday.
The possibility of extra capitalrequirements on top of Basel III iseven more unpopular with majorbanks.
US Treasury Secretary TimothyGeithner shrugged off the criticismin an interview with TV news chan-nel CNBC.
"The most important thing... is tomake sure these large institutions,large in our markets and they can beglobally, run with less leverage andless risk and hold more capitalagainst that risk," Geithner said.
"That is overwhelmingly impor-tant and I wouldn't listen too careful-ly to those people running thoseinstitutions who told us for years andyears and years (that) they knew bet-ter than anybody else how to managetheir risk." -Agencies
G20’s fiscal guards tocarry harder yardsticks
GUANGZHOU: President Asif AliZardari Friday reaffirmed that,undoubtedly, Pakistan's friendshipwith China is a long lasting one andboth the governments will take theirbilateral ties to new heights.
President expressed these viewswhile talking to the Chinese PrimeMinister Wen Jiabao during anextensive meeting that lasted forquite a while in which host of issueslike bilateral relations, regional secu-rity, international affairs and otherfields of mutual interest were dis-cussed in depth.
According to PresidentialSpokesman, President congratulatedthe Premier and people of China onthe successful inauguration of the16th Asian Games and thanked themfor the warm welcome and hospital-ity accorded to the Pakistani delega-tion.
He said that Pakistan was lookingforward to jointly celebrating the60th Anniversary of the establish-ment of Diplomatic Relations nextyear.
About the Pak-China relations thePresident said that Pakistan-Chinafriendship is a factor of peace andstability for the region. Relationswith China are of very specialimportance for the People's Partygovernment because it was theParty's founder Chairman ZulfiqarAli Bhutto who together withChairman Mao and Premier ZhouEn-lai laid the foundation of thisfriendship.
The President reiterated Pakistan'sfull support to China on a host ofissues including Tibet, Taiwan andXinjiang and described the Pakistan-China strategic cooperation as vitalfor defending common interests andto counter forces of destabilisation.
"China's support for Pakistan'sstability and social development inthese challenging times is a source ofstrength for us", the President said.
On the sidelines of the 16th AsianGames opening ceremony thePresident also held a bilateral meet-ing with Abhisit Vejjajiva, the PrimeMinister of Thailand.
Talking to the Thai Prime Ministerthe President called early implemen-tation on the 'Exchange of Offenders'Agreement due to humanitarian con-siderations and offered to host nextmeeting between the officials of thetwo countries on combating terror-ism and certain other crimes.
The President said that in order toachieve the true potential of tradebetween the two countries there wasa need for early conclusion of FreeTrade Agreement.
The bilateral trade betweenPakistan and Thailand stood at $800million last year.
The President thanked Thai gov-ernment for support to Pakistan'sefforts to attain the Full DialoguePartnership (FDP) with Asean andexpressed the hope that efforts willcontinue in the future as well. ThePresident also apprised the ThaiPrime Minister of Pakistan's role as afrontline state against terrorism, ofhow Pakistan was a victim and howmuch it was determined to root outmilitancy.-Online
China ties to touchnew acmes: Zardari
President Zardari, Thai PM discuss bilateral ties
ISLAMABAD: Advisor to PrimeMinister on interprovincial coordi-nation, Senator Raza Rabani Fridayvehemently criticised AmericanPresident Barack Obama for sup-porting Indian bid that seeks a per-manent seat in UN Security Council(UNSC).
Talking on a point of order here inthe Senate, Senator Raza Rabbaniblasted Barack Obama for pamper-ing India and ignoring Pakistan’s somany problem.
He said that India is violatinghuman rights in IHK and is not eli-gible for the membership of UNSecurity Council.
Rabbani said that it is a conspira-cy to give India an edge overPakistan and China.
The Senator advised the govern-ment to settle all issues with thehelp of international community tokeep India away from of UNSC.
He expresses concerns overThursday's bomb blast in highlysensitive area of Karachi.
Rabbani said that if all possiblesteps would not be taken to stopsuch attacks then no city would besafe in future.
He asked how a truck loaded with1000kg explosives passed by fourpolice check posts and reached theCID building unchecked.
He said that elimination of terror-ism is not possible without imple-menting the recommendations ofNational Security Committee.
Rabbani said that Parliament hadapproved unanimous resolutionsregarding terrorism and thenParliamentary committees present-ed the suggestions to the govern-ment in connection with develop-ment projects in tribal areas butthose proposals have not yet beenexecuted.-Online
Rabbani blastsObama for bias
Senator says India not eligible to sit in UNSC
NEW DELHI: Afghanistan willsign a memorandum of understand-ing (MoU) with India on mining in amonth, the country's mining minis-ter, Wahidullah Shahrani, toldreporters on Friday during a visit toIndia.
"We are quite optimistic on this.We would prefer to see more invest-ment by Indian companies," he saidafter meeting with his Indian coun-terpart BK Handique.
The MoU will cover potentialinvestment by India's private andgovernment companies inAfghanistan to mine mineralresources and also training by Indiafor Afghan professionals in the sec-tor, Shahrani said.
Afghanistan is estimated to be sit-ting on $3 trillion worth of untappedmineral deposits, but poor infrastruc-ture and investor caution are inhibit-ing development of its mining indus-
try, Shahrani told Reuters in an inter-view last month.
Shahrani said Afghanistan wouldlike Indian firms to invest in thedevelopment of mineral deposits.
"We had very good meetings witha number of them (companies) ...companies like Ispat, Essar,ArcelorMittal, Jindal Group," hesaid.
"We have had some See # 11 Page 11
Indo-Afghan mining MoU soon
KARACHI: Urging people to uniteagainst terrorism Chief MinisterSindh Syed Qaim Ali Shah Fridaysaid that the attack on CrimeInvestigation Department (CID)building was not due to securitylapse adding Sindh government con-demns it in strongest words.
Talking to the media persons hereoutside the collapsed CID building,he said that the attack was thorough-ly planned, the terrorists had come torelease their comrades, however,they failed to liberate them. In order
to cover their failure they perpetratedthis horrible act, he added. He saidthere was no security lapse and hadthe policemen present on the scenenot countered the terrorists thedestruction would have been fargreater.
He said the security arrangementswere satisfactory as five minutes ear-lier the terrorists opened fire, whileour security men retaliated bravely.
The CM said, "The governmentwould compensate the heirs of
See # 12 Page 11
Qaim unsees cops’lapse in Khi attack
Apecleadersto relish
"cool Japan"YOKOHAMA: After all that heat-ed debate in Seoul over currenciesand global imbalances, Asia-Pacificleaders will be treated to "CoolJapan" at their summit this weekendin Yokohama.
The 21 leaders of the Asia-PacificEconomic Cooperation (APEC)forum -- nine of whom were in Seoulfor the Group of 20 summit -- willgather in Japan's port city ofYokohama, just south of Tokyo totalk about a new growth strategy anda giant free trade zone.
They will sit in plush arm chairsaround a "digital pond" -- a videoscreen shaped like a fish pond -- inwhich virtual koi swim, and virtualleaves fall around a virtual stand ofbamboo. It is meant to make the
See # 13 page 11
Zardari Houseunder thick
layers ofsecurity
ISLAMABAD: Following the grue-some bomb blast at the CID CentreKarachi on Thursday night, securityhas been further tightened outside'Zardari House' located in the heartof Capital in Sector F-8/3 afterTaliban aired attack threats.
Well-placed sources told Onlinethat the entire street has beendeclared as Red Zone and no onewill be allowed to enter the premiseswithout methodical checking.
It has been further told that follow-ing Taliban threats to attack ZardariHouse, all kinds of political activitieshave been halted for a while. Beside
