KSE index could increase by 25pc: Credit Suisse

KARACHI: Karachi stock market could see a surge in index by 25 percent, following the successes in war against terrorism.Credit Suisse analyst, Farid Khan in an interview to a foreign agency told this. He said that a surge in the stock market could be seen, as the government has stepped up its operation against the terrorists.Farid Khan said that Pakistan stock market index could be included in the Morgan Stanley Frontier Index, which would help in reviving the confidence of the investors.He said that inflation has mellowed down and a further cut in the interest rate by the Central Bank was expected.

Pak-Iran to increase number of items in PTA

TEHRAN: Pakistan and Iran will enlarge the lists of items under preferential trade agreement (PTA).This was decided in the 5th Pak-Iran joint trade committee. It was also decided that Pak-Iran experts meeting would be held in Islamabad in August for finalizing the lists of the trade items in mutual consultations.Despite the two countries giving concession in import duty on 647 items under preferential trade agreement-2006, the bilateral trade volume remained less.The meeting decided that joint border trade committee would be constituted for the solution of the trade lacunae.

PSO seeks offers for import of furnace oil

KARACHI: Pakistan State Oil (PSO) has called for offers for the import of 0.4 million tons of furnace oil.PSO released handout said that among the furnace import contracts, 0.3 million tons of new light sulphur fuel oil final contract has been issued and required to be supplied between June-September at Karachi Port, while for the same period provisional tender has been floated for the supply of remaining 0.1 million tons. PSO has fixed May 16 the last date for submitting offers.

Oil tops $60, defying recession

NEW YORK: Crude oil prices briefly topped $60 a barrel early Tuesday, riding an unexpected wave of enthusiasm for the fuel in the midst of global recession.The rising price will pinch consumers and industries that had found lower oil prices one of the few bright spots in the economic downturn. But $60 oil also could boost oil company profits enough to avoid deep cuts in spending on production -- cutbacks that many experts have warned could set up a jarring price spike when demand recovers.Investors helped drive up oil prices in recent weeks, pulling their money out of cash and putting it into hard assets such as crude oil as they anticipated imminent economic recovery and a weaker dollar -- and were willing to stomach more risk. Oil futures briefly topped $60 a barrel in trading Tuesday on the New York Mercantile Exchange for the first time since November, before falling back to close at $58.85, up 35 cents. Oil prices are up 73% since bottoming out at just under $34 in February.Oil prices are rising even as U.S. demand for petroleum products has fallen to its lowest level in a decade. But while U.S. drivers and industries have been slow to increase energy consumption, Chinese oil demand is strong. On Tuesday, China reported near-record volumes of oil imports, indicating that an aggressive economic-stimulus effort by the Chinese government is reviving consumption. April imports were up nearly 14% from a year ago. Chinese car sales last month set a new record.The thirst for oil from emerging markets was a prime reason prices surged several years ago, breaking through $60 a barrel for the first time in mid-2005. Rapid growth in Chinese demand laid the groundwork for a period of record-breaking prices and profits. Asian demand is expected to continue to have a big impact on prices, as any rebound in consumption in the U.S. and Europe is tempered by increased energy efficiency and an emphasis on renewable fuels.There are 2.5 billion people in China and India rising to the level of middle-class consumers, and there's declining production in the world's maturing oil fields, noted Chris Ross, a vice president of economic consultant CRA International. "You put that together and you have the pretty serious foundation for a more robust price environment," he said.Oil's rapid return to $60 has sparked concern that rising prices could slow an economic recovery. Noting that a $10 a barrel rise in oil prices translates into a $5.5 billion monthly hit to U.S. consumers and industry, J. P. Morgan analysts recently said that "in the current fragile economic state, [rising oil prices] may be an unnecessary shock."Still, the current rally in crude prices, so far a shadow of last year's race to $145 a barrel, might defuse the potential for a much more dramatic price spike when oil demand returns in the U.S. and other industrialized economies. Current prices should bolster some energy companies' decisions to continue drilling through the relatively brief period of low prices, limiting the possibility of a future supply crunch. Industry behemoths such as Exxon Mobil Corp. and Royal Dutch Shell PLC have maintained their multibillion-dollar capital budgets, despite falling profits in recent quarters.

LAHORE: All Pakistan Gems and Jewellers Association Convention held here demanded from the government for the abolishment of withholding tax.

SINGAPORE: Oil prices eased in Asian trade Monday after breaching the 58-dollar mark last week on hopes that the flagging global economy was on the mend, analysts said. New York's main futures contract, light sweet crude for delivery in June, was down 20 cents to 58.43 dollars a barrel from Friday's close at around 0200 GMT. Brent North Sea crude for June delivery shed 10 cents to 58.04 dollars.Analysts said buoyant oil prices were a cause for concern as the fundamentals of the oil markets were still weak. The prices were likely to rise further in the week ahead as "60 dollars looks like a magnet for investors in oil," said the analysts.

Jewellers Association demands abolish withholding tax

LAHORE: All Pakistan Gems and Jewellers Association Convention held here demanded from the government for the abolishment of withholding tax.Earlier, Sarrafa and Jewelers Association (Lahore Division)’s office-bearers took oath in the convention held at Hamdard centre here.

Islamic finance has a bigger role after global slowdown

SINGAPORE: Islamic finance must strengthen regulation, boost its professional staff and diversify as it takes on a bigger global role in the aftermath of the worldwide financial crisis, experts said.Financial products compliant with Islamic shariah law are likely to gain in popularity as investors seek safer havens after the ruin caused by toxic derivatives sold globally by mainstream Western banks, they said.However, experts warn that Islamic financial institutions must be on their guard against falling into the same unbridled excesses that jolted Wall Street and snowballed into a global economic downturn. "Islamic finance is not immune from such pitfalls. Hence, we must be careful to avoid this error in the Islamic financial industry," said Muhammad Sulaiman Al-Jasser, governor of the Saudi Arabian Monetary Agency.Islamic finance is now established in 47 countries with more than 600 institutions managing "balance-sheet assets" worth over 630 billion US dollars, with another 200 billion to 300 billion dollars managed as investment funds, he added.Issuance of Islamic bonds, called sukuk, in Asian currencies aggregated to 64.3 billion dollars in 2008, down 1.5 percent from 2007 when it expanded by 50 percent over the year before, Moody's Investor Service said this month.But the industry has much room for growth as Islamic finance represents only 1.0 percent of the total assets held by the global financial markets, experts said.