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.

Dung Quat Refinery Gasoline Commercially Available From June

HANOI -(Dow Jones)- Gasoline from Dung Quat Refinery, Vietnam's first, will be commercially available in the domestic market from June, the Ministry of Natural Resources and Environment said Monday.
The ministry said the refinery will provide between 400,000 and 500,000 metric tons of oil products to the market each month, without giving the figure for gasoline.
A refinery operator said late last month the plant started pumping out gasoline April 29.
He said gasoline is the last of a range of products the refinery produces.
The refinery is owned by state-run Vietnam Oil and Gas Group, also known as PetroVietnam.
The refinery will receive 80,000 tons of domestic crude oil for operations during the three-month period, it said.
PetroVietnam said the refinery will operate at 70% capacity by June and at 100% by August. It is expected to produce 2.6 million tons of petroleum products this year.
The $3.1 billion refinery, located 885 kilometers south of Hanoi in Quang Ngai province, is expected to meet a third of Vietnam's petroleum product needs.
When fully operational, it will be able to produce 1.9 million tons of gasoline, 3 million tons of diesel, 290,000 tons of liquefied petroleum gas, 110,000 tons of propylene, 410,000 tons of jet fuel and 320,000 tons of fuel oil, PetroVietnam said.

Al Qaeda Pipeline Through Syria Reactivated - Report

WASHINGTON (AFP)--A Syrian pipeline used by Al Qaeda in Iraq to smuggle Islamic fighters into Iraq has been reactivated after a short lull, The Washington Post reported late Sunday.
The newspaper said the revival of the transit route that officials had declared all but closed comes as the administration of President Barack Obama is exploring a new diplomatic dialogue with Syria.
On Wednesday, acting Assistant Secretary of State Jeffrey Feltman and National Security Council official Daniel Shapiro arrived in Syria for their second visit since Obama's inauguration as president.
However later last week, the administration renewed sanctions against Syria, accusing Damascus of supporting Mideast terrorism and undermining Iraqi stability.
The Bush administration frequently criticized Syria for the transit of foreign fighters, suggesting that the authoritarian government of President Bashar al- Assad was involved in the traffic, the report said.
"We do think that the knowledge of these networks exists at least within the Syrian intelligence community," the paper quoted an unnamed senior U.S. military official as saying. "What level, if it's low or high up, we just don't have a good gauge on."
Gen. David Petraeus, who heads the U.S. Central Command, told Congress late last month that Al Qaeda's Iraq pipeline through Syria had been "reactivated."
The military is particularly concerned about the area around Mosul, in the northwest near the Syrian border, which officials have described as the last bastion of Al Qaeda in Iraq.
"There was a period...where we were probably seeing less than half a dozen foreign fighters being pushed through the network," the official told The Post.
More recently, he said, the estimate has risen to 20 a month, and various intelligence sources have noted an increased "demand call" in Iraq for foreign fighters.

Australian Mining Technology Cos Seek To Invest In Vietnam

HANOI -(Dow Jones)- Representatives from 15 Australian mining technology firms will visit Vietnam later this month to seek investment opportunities in the country's mining industry, Vietnam's Ministry of Natural Resources and Environment said Monday.
During the three-day visit starting Monday, the delegation will hold talks with state-run Vietnam National Coal-Mineral Industries Group and visit the Sin Quyen Copper Mine and Tang Loong Copper Refining Plant in the northern province of Lao Cai, the ministry said in a statement.
The delegation will introduce their mining technologies and services to mining firms in Vietnam, the ministry added.

Global Ocean Talks Begin In Indonesia

MANADO, Indonesia (AFP)--A global meeting on the future of the world's oceans opened in Indonesia Monday with discussions aimed at helping set the stage for December's climate change talks in Denmark.
Officials from more than 70 countries met in Manado city for the five-day World Ocean Conference, a ministerial-level meeting touted as the first major global talks on the role of oceans in mitigating climate change and global warming.
Environment, fisheries and resources ministers are expected to pass a joint declaration aimed at influencing talks in Copenhagen in December that will discuss a successor to the expiring Kyoto Protocol on climate change.
Host Indonesia says it hopes to broaden the scope of any future climate agreement to encompass marine environments.
"It is clear that our precious marine resources are under dire and increasing threat and that in many parts of the world climate change will accelerate their destruction," Indonesian Maritime Affairs and Fisheries Minister Freddy Numberi said at the conference opening.
"Adaptation and mitigation measures are urgently needed to be taken up not only to save marine and coastal resources but also to save the coastal communities."
Leaders from six countries - Indonesia, the Philippines, Malaysia, East Timor, the Solomon Islands and Papua New Guinea - will meet on the sidelines of the conference to launch a plan to save the Coral Triangle, an underwater ecosystem that is home to more than half the world's coral reefs.

BOJ Nishimura: Hard To Stop Financial, Econ Vicious Cycle

TOKYO -(Dow Jones)- Bank of Japan Deputy Gov. Kiyohiko Nishimura voiced concerns last Friday that it could be difficult to stop the current vicious cycle between financial distress and economic activity.
"Once an adverse feedback loop has been started, it is extremely difficult and costly to stop it and to restore confidence" in the markets, Nishimura said at a conference held by the Federal Reserve Bank of Chicago on Friday, according to the text of the speech released by the central bank on Monday.
While there is some resemblance between the financial crisis in the U.S. and the one Japan experienced in the 1990s, the current crisis is "far more complex, interconnected and global" than Japan's so-called "lost decade," Nishimura said.
The deputy chief also pointed out the difficulty in getting "reasonable estimates of losses and a reasonable pricing of troubled assets" during a financial turmoil - which leads to erosion in investor confidence and "excessive aversion to uncertainty."
To prevent further deepening of the crisis, Nishimura said it is necessary to "make every effort to avoid macro-systemic financial distress, and thus to regulate macro-systemically important financial institutions more closely and comprehensively."

China Bank Regulator:Bks Face Long-Term Risks From Urbanization

BEIJING -(Dow Jones)- China's banks face a potential concentration of risks over the long term due to their exposure to projects related to the country's urbanization process, China Banking Regulatory Commission Chairman Liu Mingkang said Monday.
Liu's comments in a speech at the Asian Banker Summit 2009 in Beijing highlight the regulator's concerns over systemic risks in the banking sector.
Beijing has urged banks to direct huge amount of loans to support infrastructure projects as well as other types of industrial investment. In the first quarter, banks issued CNY4.58 trillion worth of new loans, nearly equal to all new lending made last year.
Separately, Liu said China's financial infrastructure, such as the clearing system for derivative contracts, has yet to be fully developed. He also said China still doesn't have deposit insurance or a bankruptcy law for financial companies.

China, UK To Discuss Reform Of International Financial Systems, Boosting Trade

BEIJING -(Dow Jones)- China and the U.K. will discuss reform of the international financial system, the promotion of financial stability, the development of capital markets, and cooperation to boost bilateral trade and investment, Vice Finance Minister Zhu Guangyao said ahead of the Second China- U.K. Economic and Financial Dialogue that begins Monday.
Zhu's comments, made at a news briefing in London on Sunday, were posted in a statement on the Chinese government's Web site Monday.
Chinese Vice Premier Wang Qishan will chair the dialogue with U.K. Chancellor of the Exchequer Alistair Darling. Wang will also meet U.K. Prime Minister Gordon Brown and representatives of local enterprises and financial institutions, the statement said.

India April Local Car Sales Rise 4.2% To 102,899 Vehicles

NEW DELHI -(Dow Jones)- Local car sales in India rose 4.2% in April to 102,899 units from 98,752 a year earlier, data issued Monday by the Society of Indian Automobile Manufacturers showed.
SIAM didn't give any reason for the rise in the sale of cars.
Automobile sales are considered a key indicator of India's economic condition. Vehicle sales in units
April '09 April '08 Change
Passenger Cars 102,899 98,752 4.2%
Utility Vehicles 22,320 22,201 (0.5%)
Multipurpose Vehicles 10,478 9,070 15.5%
Light Trucks/Buses 18,819 14,676 28%
Medium, Heavy Trucks/Buses 11,023 18,950 (42%)
Scooters 97,129 81,002 20%
Motorcycles 562,357 501,592 12%
Mopeds 40,915 32,944 24%
Three Wheelers 27,524 27,066 1.7%
Figures in parantheses represent decline in sales.

ASIA MARKETS: Toyota Leads Auto-stock Sell-off

Shares of major automakers in Asia traded mostly lower Monday as the industry continued to reel from news that the world's largest carmaker had posted its first-ever annual loss.
"It was an extremely difficult operating environment for the automakers during the quarter (and past 12 months), and it doesn't appear to be getting any easier," David Silver, an analyst at Wall Street Strategies, wrote in a recent research note.
"The Japanese yen has remained stubbornly high, but the fact remains once the economy in the United States begins to turn, other economies around the world will follow," he said.
Toyota Motor Corp. (TM) reported Friday a $7.7 billion quarterly loss and forecast another loss for the current fiscal year.
"The company reported its first loss since becoming a public company in 1950," said Silver.
Toyota had already warned it would report full-year loss, which Silver said was the first since it became a public company in 1950.
However, the warning, issued in February had called for a net loss of 350 billion yen ($3.6 billion). The actual result was a larger loss of 437 billion yen. A year earlier, Toyota saw a net profit of 1.72 trillion yen.
During Monday's morning session, shares of Toyota fell by 5%.
Other automakers also headed lower, with Honda Motor Co. (HMC) falling 3.1%, Nissan Motors shares (NSANY) down 4.4%, and Mazda Motor Corp. (7261.TO) losing 4.1% in Tokyo.
In Seoul, shares of Hyundai Motor Co. (HYMTF) fell by 1.7%.
Nissan and Mazda are scheduled to report their financial results on Tuesday.
Isuzu Motors (ISUZY) saw its stock climb 0.5% in Tokyo ahead of its fiscal year results due later Monday. The company expects to report a net loss of 15.85 billion yen.
Kia Motors Corp. (KIMTF) also managed to climb 1.8% in Seoul, and shares of mainland China's Dongfeng Motor Group were 4.5% higher.
The share moves came amid mixed trading in the broader Asian markets. The Nikkei 225 Average fell 0.9% in Tokyo, and the broader Topix fell 0.1%, but Hong Kong's Hang Seng Index was up 0.8% and the China Shanghai Composite gained 0.9%.
Challenges abound
Toyota's losses were "primarily linked to the plunge in sales," said Silver.
Its rivals have, of course, been taking similar hits. Ford Motor Co. (F) in April saw its U.S. vehicle sales drop by 32%, but it still outsold Toyota for the first time in at least a year, according to a note from analysts at Canaccord Adams released on May 4.
"You know things suck when dropping 32% ranks you No. 1," analysts at Canaccord said in last week's note.
The Japan Automobile Importers Association reported that sales of imported motor vehicles in Japan, including those made by Japanese carmakers overseas, dropped for a 12th month in a row, down 30.5% from a year earlier to 11,348 units in April, according to a Kyodo News report on the data.
And many companies have been hurt by the strength in the Japanese yen.
Honda, for example, cited the recently strong yen as a major reason for the 77% drop in its fiscal year income.
In Asian trade Monday, one U.S. dollar bought 98.37 yen, down from 98.93 yen on Friday.
But despite the sales and currency headwinds, Wall Street Strategies' Silver is still bullish, reiterating his recommendation to buy Toyota stock regardless of the expected loss for the current fiscal year.
"We feel the company is best positioned to capitalize on the eventual rebound in auto sales," he said.
And "the fact remains that despite the steep drop, General Motors and Toyota are still No. 1 and No. 2 in the market," he said.
He also noted weakness in Toyota's U.S. competitors.
With "bankruptcy rumors circling around General Motors, and the [bankruptcy] filing by Chrysler, the American marketplace is wide open for another player to try to enter," he said.
Chrysler LLC fell into bankruptcy in late April and last week said it expects billions of dollars in losses in the coming years.
On Thursday, U.S.-based General Motors Corp. (GM) said it lost $6 billion as revenue was cut almost in half.

Growth In Korea Money Supply Slows For 3rd Straight Mo In Mar

SEOUL -(Dow Jones)- Growth in South Korea's broadest measure of money supply slowed for a third straight month in March as the pace of rise in loans to companies and households eased, Bank of Korea data issued Monday showed.
The measure, known as L money supply, rose a preliminary 10.6% from a year earlier to KRW2,340.9 trillion ($1.892 trillion), compared with the previous month's gain of 10.8% and a 10.9% rise in January.
L money supply includes cash, deposits at financial institutions and money- market instruments.
"Money supply keeps growing, but at a slower pace as growth in credit loans to companies and households has eased," the central bank said in a statement.
The data come ahead of a rate review Tuesday, when the central bank is expected to keep its benchmark interest rate unchanged at an all-time low of 2.00% for a third straight month amid some signs showing that the economy is improving.
Growth of a sub-indicator, M2, slowed for a 10th straight month, rising 11.1% to KRW1,470.4 trillion in March, after increasing 11.4% in February.
M2 consists of cash in circulation and deposits with maturities of less than two years at banks and non-bank financial institutions, excluding those at insurance and securities companies.
In a separate statement, the BOK said that funding conditions of local corporations improved further in April, helped by the BOK's easing stance in recent months, an increase in the issuance of corporate bonds and expanded bank loans to smaller firms.
The BOK said lending by South Korean banks to businesses rose by KRW3.2 trillion to KRW472.4 trillion in April, a bigger rise than a KRW2.1 trillion increase recorded in March.
Loans to households also rose in April, by KRW1.1 trillion to KRW392.7 trillion, the central bank said.

S Korea Securities Cos' FY2008 Net Profit Fall 54%

SEOUL -(Dow Jones)- The combined profit of 60 securities companies operating in South Korea fell 54% during the fiscal year 2008 ended March 31 due to a drop in brokerage commission as a result of the stock market slowdown, the Financial Supervisory Service said Monday.
Securities companies in South Korea posted a combined KRW2.04 trillion in net profit in 2008, compared with KRW4.41 trillion in the preceding year, the FSS said in a statement.
Return on equity of the brokerage firms fell to 6.7% in 2008 from 17.0%.
The net profit of 20 foreign-owned brokerage firms fell 30.1% to KRW711 billion, while that of locally owned companies fell 61% to KRW1.33 trillion, the FSS said.
The average net capital ratio of securities companies, a key measurement of financial health, was at 615.7% at the end of March, up from 591.2% a year earlier, and much higher than the 150% threshold recommended by the FSS.

Weak retail sales report halts stock market rally

NEW YORK – Wall Street shifted into reverse Tuesday after a surprisingly weak retail sales report punctured investors' optimism about the economy.
The poor sales data, combined with a sharp drop in wholesale prices, came just as the corporate earnings season, usually a volatile time in the market, got under way. The Dow Jones industrials lost nearly 140 points.Underscoring the market's sensitivity, shares in Intel Corp. fell sharply in after-hours trading after the chipmaker reported weaker results after the bell and didn't offer a forecast for revenue.
Investors are already braced for bad earnings but are highly anxious about forecasts from companies that could indicate a weaker economy. Poor outlooks in the last earnings season in January derailed a 20 percent rally, and some fear the market's current five-week rally could be vulnerable as well.
Financial stocks tumbled after Goldman Sachs Group Inc. announced strong profits but said it would raise $5 billion to repay government bailout money. Investors speculated that other major banks might follow suit, which would put pressure on their stocks. Citigroup Inc. and JPMorgan Chase & Co. are also due to report results this week.
The Dow closed down 137.63, or 1.7 percent, at 7,920.18.
Broader measures also lost ground after three days of gains. The Standard & Poor's 500 index fell 17.23, or 2 percent, to 841.50, and the Nasdaq composite index fell 27.59, or 1.7 percent, to 1,625.72.
Tuesday's selling was orderly and extended a give-and-take pattern the market has followed since halting a steep slide over the first two months of the year. Stocks have risen from 12-year lows since then on hopes that banks are getting through the worst of their problems and the economy might be bottoming out, though both the Dow and S&P 500 are still below where they started the year.
The unexpected 1.1 slump in retail sales in March undermined the market's brightening outlook for the economy. The drop was far worse than the increase of 0.3 percent that analysts polled by Thomson Reuters expected and marked the biggest fall in three months. Investors watch retail sales trends closely as a barometer of consumer spending, which makes up two-thirds of U.S. economic activity.
"The choppy data that we're seeing, whether it's economic or earnings, reminds us that we're still not out of the woods," said Sean Simko, head of fixed income management at SEI Investments in Philadelphia. "The market always has a tendency to go too far too fast."
Investors took little comfort from speeches by President Barack Obama and Federal Reserve Chairman Ben Bernanke that there have been hopeful signs about the economy but that a sustained recovery won't arrive quickly.
A separate report on wholesale prices gave another poor reading on the economy.
The Labor Department said wholesale prices tumbled 1.2 percent in March as the cost of gasoline, other energy products and food fell sharply. Falling prices fan worries about a spiraling effect where consumers and businesses would cut spending out of fear that they would pay too much for something today that could be worth less tomorrow.
The drop in stocks followed more signs that some companies reporting earnings for the first quarter might be able to top Wall Street's modest expectations.
After the end of trading Tuesday, railroad operator CSX said its first-quarter profit fell 30 percent from a year earlier, but the results came in well above Wall Street's expectations.
Johnson & Johnson said before the opening bell that its first-quarter profit dipped, but not as much as expected. The health care products maker was one of four stocks among the 30 that make up the Dow industrials to show a gain. The stock rose 22 cents to $51.37.
Goldman released its results a day early Monday, reporting after the end of trading that it earned $1.66 billion in the quarter, well above what analysts were expecting. The company said it would raise $5 billion in stock in hopes of repaying the $10 billion investment it received from the government last year.
Goldman shares fell $15.04, or 11.6 percent, to $115.11 after its stock offering was priced at $123 per share, a discount of 5.5 percent to Monday's closing price.
Most other financial stocks slid. JPMorgan fell $3, or 8.9 percent, to $30.70, while Morgan Stanley fell $3.22, or 12 percent, to $23.67.
Jeffrey Frankel, president of Stuart Frankel & Co. in New York, says investors are braced for the worst during earnings season. "There is very little that could come out that will spook traders," he said.
In other market moves, the Russell 2000 index of smaller companies fell 14.83, or 3.2 percent, to 453.22.
Two stocks fell for every one that rose on the New York Stock Exchange, where consolidated volume came to 7.3 billion shares compared with 6.3 billion shares traded Monday.
Bond prices rose after the weak economic readings. That pushed the yield on the 10-year Treasury note down to 2.79 percent from 2.86 percent late Monday.
The dollar was mixed against other major currencies, while gold prices fell.
Light, sweet crude fell 64 cents to settle at $49.41 a barrel on the New York Mercantile Exchange.
Overseas, Japan's Nikkei stock average fell 0.9 percent. Britain's FTSE 100 rose 0.1 percent, Germany's DAX index gained 1.5 percent, and France's CAC-40 rose 0.9 percent.

KSE budget proposals given final shape

KARACHI: Karachi Stock Exchange (KSE) has given a final shape to their budget proposals for the next financial year, which included the demand for the abolition of capital value tax.A KSE director told Geo News that KSE has finalized its budget proposals, which the Board meeting slated April 14 would approve. KSE director said that the budget proposals also demanded ending capital value tax and exempting dividend from income tax. Besides, the bridging of gap between the corporate tax and tax on public sector companies has also been proposed.KSE Board after approval of the budget proposals will send it to SECP and finance ministry.

KSE members hail announcement of Governor Rule lifting

KARACHI: Members of Karachi Stock Exchange (KSE) Saturday hailed the announcement by President Asif Ali Zardari regarding lifting of the Governor Rule in Punjab.They said the announcement will further fuel the bull the run being witnessed at the share market.Senior members of KSE including Aqeel Karim Dedhi, Arif Habib, Siddique Dalal and Faisal Rajab Ali talking to Geo News said the announcements made by the President will not only promote the process of reconciliation in the country but also clear up uncertainties.

Bulls return to KSE; contribute 219 points to 100-Index

KARACHI: Aggressive buying at Karachi Stock Exchange on Friday pushed the benchmark KSE-100 Index by 219 points to 6,826.Today’s trade started in the green zone but kept on moving across the fence throughout the day. However, investors were seen taking positions in energy and banking stocks in the second session which took the major Index to the present level.The market turnover was recorded at 220 million shares.Bank Alfalah drew maximum activity which slipped paisas 18 to close at Rs14.92.KSE-30 Index surged by 253 points to finish the day at 7,375.Market analysts are of the view that the bullish trend could gain momentum in the next week.

Profit taking erodes 66 points from KSE

KARACHI: Karachi Stock Exchange witnessed profit taking on Thursday, pulling away 66 points from the benchmark KSE-100 Index which closed at 6,608.Today’s trade began in the positive zone but later selling in banking and energy stocks switched the share market into bearish mode.The trade volume remained strong at 200 million shares.Nishat Mills emerged as today’s volume leader which lost Rs1.62 to close at Rs30.87.Market analysts foresee resistance at 5,500 level.

MSCI Pakistan Index reclassified as MSCI Frontier Markets Index

GENEVA: MSCI Inc, a leading provider of investment decision support tools worldwide including indices and portfolio risk and performance analytics, announced today, following a consultation with the investment community, the reclassification of the MSCI Pakistan Index as MSCI Frontier Markets Index. Some participants to the consultation have positively highlighted the return to normal trading conditions on the Karachi Stock Exchange and the resulting increased liquidity. However, a majority of market participants stressed the need for the Pakistani equity market to function without any trading disruptions for some time as a condition to any potential consideration of the MSCI Pakistan Index for re-inclusion in the MSCI Emerging Markets Index. In addition, the MSCI Pakistan Index no longer meets the size requirements set for the MSCI Emerging Markets Index. Consequently, the MSCI Pakistan Index will be included in the MSCI Frontier Markets Index as of the close of May 29, 2009 to coincide with the May 2009 Semi-Annual Index Review.

KSE-100 index breaches 6500 marks

KARACHI: Karachi Stock Exchange (KSE) this morning seen upbeat and positive resulted in a handsome gain of 200 points, breaching the 6500 psychological barriers. Sources said the market today briskly trading saw the index soon shooting up first by 150 points and then gradually added another 50 points breaching 6500 marks.Analysts said that the market is seen behaving positive since the restoration of chief justice and political parties heading towards conciliation and amity.

CFS financing at KSE sees 34% increase

KARACHI: CFS financing at Karachi Stock Exchange (KSE) has recorded a 34 percent rise.According to statistics released by KSE, Rs1.1 billion were invested at KSE through CFS financing this week which is 34 percent higher than previous week.The rate of interest on CFS after witnessing an increase of 1 percent stood at 14.95 percent.

KSE closes on negative note at weekend

KARACHI: Karachi Stock Exchange (KSE) after witnessing a bull run during the last four session ended Friday on a negative note as KSE-100 Index lost 101 points to finish the day at 6340.Profit taking on last trading day of the week eroded some of the gains recorded in the past four days.Trade volume was registered at 220 million shares with OGDC emerging as volume leader which slipped Rs3.16 to close at Rs62.99.KSE-30 Index declined by 149 to close at 6,831.

Bulls gain strength at KSE, contribute 175 points

KARACHI: Bulls grew further strength at Karachi Stock Exchange (KSE), pushing the KSE-100 Index up by 175 points to 6,441.Stock market opened upbeat today and remained in the green zone throughout the session.Trade volume remained strong at 270 million shares.NIB Bank drew maximum activity which gained paisas 31 to close at Rs5.85.Market analysts foresee resistance ahead at the level of 6,500.

KSE’s upward march continues

KARACHI: Positive trend continued at Karachi Stock Exchange (KSE) Wednesday where the benchmark KSE-100 Index gained 127 points to close at 6,267.The announcement of financial results of National Bank of Pakistan fueled further investment at KSE, contributing fresh gains in the major Index. NBP closed at its upper circuit breaker today.Trade volume was registered at 230 million shares, showing an increase of 20 million compared to yesterday’s trade.NIB remained the star performer in terms of volume which gained paisas 16 to close at Rs5.44. KSE-30 Index advanced by 190 points to finish the day at 6,768.

Bull-run continues at KSE

KARACHI: The bull-run continues on the second day at Karachi Stock Exchange (KSE) as 100-Index further gained 75 points to close at 6138.53, dealers said.The turnover volume stood at 216.477 million shares as prices of124 recorded gains while 262 sustained losses and 15 remained unchanged.Analysts said that market was bullish in the morning with a positive sentiment. But, some profit taking took place which eroded values of leading scrip. However, Index remained in the positive zone on buying spree.The market capitalization was improved by Rs 16 billion to Rs 1.866 trillion. NIB Bank was the volume leader with a turnover of 21.347 million shares.

CJ’s restoration propels aggressive buying at KSE; Index up 313 points

KARACHI: The news of restoration of deposed chief justice Iftikhar Muhammad Chaudhry Monday brought back the investor confidence to Karachi Stock Exchange (KSE), pushing the 100-Index up by 313 points to 6063.The Index crossed the psychological barrier of 6,000 points on the back of aggressive buying by the investors propelled by the government’s early morning decision of reinstating the judiciary sacked on November 3, 2007.The announcement of Prime Minister Yusuf Raza Gilani of restoring the deposed CJ and filing of review petition in the Supreme Court on Sharif brothers ineligibility cast away all the uncertainties that persisted in the previous months at KSE, dealers said.The trade volume was recorded at 210.06 million shares.Pakistan's market lost 58 percent of its value during 2008 due to economic turmoil, political uncertainty and incessant militant attacks, particularly in the troubled northwest.

KSE sustains 5,700 level at weekend

KARACHI: The benchmark KSE-100 Index at Karachi Stock Exchange (KSE) on Friday kept moving both sides of the fence during the session but managed to close 43 points up at 5,750.The share market opened in the green zone and kept seesawing throughout the session but managed to sustain the level of 57,00 at the weekend.Trade volume was recorded at 100 million shares. NIB generated maximum activity which gained 27 paisas to close at Rs4.83. KSE-30 Index gained 63 points to finish the day at 6,085.

KSE sustains 5,700 level at weekend

KSE sustains 5,700 level at weekend

KARACHI: The benchmark KSE-100 Index at Karachi Stock Exchange (KSE) on Friday kept moving both sides of the fence during the session but managed to close 43 points up at 5,750.The share market opened in the green zone and kept seesawing throughout the session but managed to sustain the level of 57,00 at the weekend.Trade volume was recorded at 100 million shares. NIB generated maximum activity which gained 27 paisas to close at Rs4.83. KSE-30 Index gained 63 points to finish the day at 6,085.

A three-peat for Wall Street's bulls

NEW YORK (CNNMoney.com) -- Stocks jumped Thursday, gaining for the third session in a row, as investors scooped up banks and other shares hit in a selloff that left the Dow at 12-year lows.
The Dow Jones industrial average (INDU) gained 240 points, or 3.5%, managing a three days of back-to-back gains for the first time since late January.
The S&P 500 (SPX) index gained 29 points, or 4%. The Nasdaq composite (COMP) gained 54 points, or 4%.
Although it's too soon to tell where stocks are going to go from here, the rally off the lows is nonetheless encouraging, said Dan Genter, president and CEO at RNC Genter Capital Management.

Bank of England creates £2bn of 'new' money

LONDON (ShareCast) - The Bank (TBHS - news) of England has successfully pumped almost £2bn of extra money into the financial system in the
hope it will convince banks will lend more money.
A complicated 'reverse auction' process attracted offers from commercial banks to sell £10.5bn worth of gilts, or government bonds, to the central bank, of which a fraction under £2bn was accepted.
This means the Bank of England has effectively started the printing presses as part of its £75bn programme of 'quantitative easing' to boost the British economy.
The idea is that it gets new money into the system and into the banks, which it hopes will then increase lending to cash-strapped companies and individuals.
There was disappointment earlier as the first of today's two auctions, conducted at midday and aimed at institutional investors such as pension funds, failed to attract any interest.
It's though that many of them chose to pass instructions to their brokers who acted on their behalf at the second auction to banks this afternoon.
Bidders were only interested in the 'competitive' portion of the auction, held between 2.15pm and 2.45pm, which allowed banks to put a price on their gilts. There was no interest in the 'non-competitive' part that committed bidders to the Bank's own price.
Today's action comes less than a week after the Bank of England confirmed it would begin a £75bn programme of asset purchases and that it had permission from chancellor Alistair Darling for another £75bn if needed.
It's the first time the policy has been tried in the UK and some are calling it the last throw of the dice to save the country from an even deeper recession.
Interest rates have already been slashed to their lowest in the central bank's 315-year history, leaving little room for further stimulus from rate cuts alone. Borrowing costs fell another half point this month and are down from 5% last October.
Auctions will now take place every Monday and Wednesday, with results published on the Friday.
It could take up to three months to carry out the programme, according to a statement from the Bank released last Thursday.
But the move has angered some. Ros Altmann, an independent policy adviser, explains that the plan to get the institutions selling gilts to invest the money in UK company debt instead, "is not going to happen!"
"Institutions will switch to overseas debt or top quality bonds, but will not put much into smaller companies who desperately need the funds," he says.
"Whoever is advising the government on this simply does not understand how institutional investors operate."

U.S. shares set to edge up after surge on Tuesday

U.S. shares are set to edge up further on Wednesday, building on the gains made in the previous session when they posted the biggest rise in four months.
* At 0928 GMT futures for the Dow Jones DJc1, S&P 500 SPc1 and Nasdaq NDc1 were up between 0.2 and 0.4 percent.
* U.S. Treasury secretary Tim Geithner will hold a briefing at 1700 GMT ahead of the weekend G-20 finance ministers and central bank governors meeting.
* Also on Capitol Hill, Neel Kashkari, the interim assistant secretary of the Treasury for financial stability testifies on the Troubled Asset Relief Program (TARP).
* Office supplies company Staples (SPLS.O) is expected to report lower fourth-quarter earnings as its U.S. small business customers grapple with the recession.
* Apple Inc (AAPL.O) will take a third-quarter delivery of newly developed 10-inch touchscreens from Taiwan, a source said on Wednesday, amid talk the U.S. firm is developing a touch-screen PC. [ID:nTP374787]
* Crude oil inventories fell slightly last week, according to a Reuters poll. Data is due at 1430 GMT.
* New York prosecutors are investigating whether the early payment of bonuses at Merrill Lynch last year gave the bank's traders an incentive to mark down the value of their trading positions in the last days of December, the Financial Times said, citing people familiar with the probe. * Financials led a massive rally on Tuesday, with major indexes jumping off 12-year lows after Citigroup's (C.N) chief executive, Vikram Pandit, stated in a memo to staff that the bank was profitable in the first two months of 2009.
* The Dow Jones industrial average .DJI gained 5.8 percent; the Standard & Poor's 500 Index .SPX climbed 6.4 percent; the Nasdaq Composite Index .IXIC jumped 7.1 percent. (Reporting by Brian Gorman; Editing by Greg Mahlich)

Bears grow stronger at KSE; erode 86 points

KARACHI: Bears grew stronger at Karachi Stock Exchange (KSE) on Monday, taking away 86 more points from the benchmark KSE-100 Index which closed at 5,662 level.Today’s trade began in red zone and the selling pressure continued throughout the session.Trade volume was recorded at 48 million shares, lowest since December 2008.NIB registered highest volume which slipped paisas 25 to close at Rs4.85. KSE-30 Index finished the day 94 points down to 5,908.

Asian shares down after more bad news on Wall Street

TOKYO: Asian stocks tumbled early Monday on the back of Wall Street's losing streak as gloom deepened over the global economy and the health of major banks. Tokyo was down 3.2 percent by lunch and Sydney lost 3.0 percent by midday. Hong Kong opened 2.3 percent lower and Chinese shares were down 1.0 percent. Asian shares started the week on the downbeat note amid worries about the health of large US banks and broader fears over the global economy."The US economy is in the worst shape it's been for probably 50 or 60 years, so it's hard for equities to rally." The Dow has dropped 19.5 percent so far this year while Japan's Nikkei is down 17 percent and Hong Kong's Hang Seng is off almost 13 percent. Investors were disappointed by news of a 6.2 percent contraction in the US economy in the fourth quarter of last year that was far worse than the earlier government estimate of a 3.8 percent decline.In Australia, the benchmark S&P/ASX200 hit the lowest intra-day level since December 2003. "Uncertainty is driving the market right now," Man Financial broker Anthony Anderson said. "There's uncertainty about the economy and about what the US government is going to do about the problems." Mining giant Rio Tinto was one of the hardest hit stocks, sliding 6.6 percent on fears its 19.5 billion US dollar tie-up with Chinese state-owned firm Chinalco may not go ahead. Rival BHP Billiton lost four percent. Elsewhere in the region, Seoul fell 3.5 percent, Taipei shed 1.75 percent, Manila slipped 0.3 percent and Kuala Lumpur declined 0.5 percent.

Bearish trend continues at KSE; KSE down 40 points

KARACHI: Selling pressure continued at Karachi Stock Exchange (KSE) on Friday as the KSE-100 Index closed 40 points down to 5,748.Trade activities remained thin on the last trading day of the week as the trade volume was recorded at 69 million shares, which is lowest in three months.OGDC led the volume leaders which slipped paisas 43 to close at Rs56.60.Market analysts say the market activities will continue to remain affected until the political uncertainties persist in the country.

O'Shaughnessy sees big upside, S&P 500 at 900

NEW YORK (Reuters) - U.S. stocks are trading at compelling prices after their plunge to 12-year lows this week and could rally 25 percent by the end of the year, said Jim O'Shaughnessy, a well-known investor on Wall Street.
U.S. stocks, as measured by the benchmark Standard & Poor's 500 Index .SPX, are likely to return after inflation 7.3 percent per year from now through 2019, said O'Shaughnessy, author of the best seller, "What Works on Wall Street."
A rising savings rate and an improved housing market, while not completely healed, point to brighter times ahead in the U.S. economy, O'Shaughnessy told Reuters in an interview.
"I do think that as all that coalesces, you see a good chance for the S&P 500 (at) 900 out of the year. What are we right now? 713? That could be a very nice rally," he said, in reference to Wednesday's closing level for the S&P 500.
O'Shaughnessy, who makes investment decisions based on the quantitative analysis of 10,000 stocks and their prices over the past five decades, said the recent carnage in stocks only heightens what to expect over the next five to 10 years.
A review of the 12 worst 10-year rolling periods since 1926 shows that from the bottom, there were no negative returns over the next decade. The first year out, stocks returned 25 percent; after three years, 11 percent; and after five years, almost 13.5 percent, O'Shaughnessy said.
Following are more of O'Shaughnessy's views and opinions on the state of the financial markets:
HAVE U.S. STOCKS BOTTOMED?
"The problem with today is everybody's fighting the 'Where's the bottom?' fight. If you try to keep a relatively longer-term perspective, which is three to five years, you get shouted out ... From our point of view the market is even more compelling than it was when we spoke at the beginning of the year.
"Yeah, we could go down some more here in the short term, but it only makes the ultimate valuation more and more compelling.
"We're going to have a rotten jobs (report) on Friday. We're going to have other bad news, and you just look at the market in that light as a discounting mechanism.
"Is it easy? Of course not. It's horrible. You look at the day to day in the market, and you shake your head and think, 'Well this is, of course, why there is that thing called the equity risk premium.'"
WHAT ARE YOU BUYING, OR NOT BUYING?
"Kind of for the first time, across all sectors. We're not in a situation where we're really super-favoring any one sector. I would say we have notched up our buying of consumer discretionary .GSPD. It makes some sense to me. A couple of months ago, we had all the deep discount -- dollar stores and that kind of stuff -- now we are starting to see it broaden out a little bit.
"We're kind of neutral, with the exception of consumer discretionary. We're buying every sector. Now our financials have gone down (in our portfolios), we got stopped out of the bigger ones, because one of our criteria is you got to have positive cash flow.

Sri Lankan team attack also rocks bourses

KARACHI: Karachi Stock Exchange (KSE) along with the other two stock exchanges of the country rocked by the Sri Lankan team attack this morning in Lahore went nose-dive, as the investors in great panic sidelined from business and seen glued with the TV channels, which continued pouring horrifying details of the gory incident for hours.Following the terror incident in Lahore today, KSE opened down by 60 points and on one occasion KSE-100 index was seen eroded by 150 points plummeting the index to 5500 points.Lahore Stock Exchange (LSE) being the epicenter of the terror attack felt the similar shock, which saw the index in initial trading shed by over 30 points to peg at 1535 points, while in Islamabad bourse was no exception.

Asian shares down after more bad news on Wall Street

TOKYO: Asian stocks tumbled early Monday on the back of Wall Street's losing streak as gloom deepened over the global economy and the health of major banks. Tokyo was down 3.2 percent by lunch and Sydney lost 3.0 percent by midday. Hong Kong opened 2.3 percent lower and Chinese shares were down 1.0 percent. Asian shares started the week on the downbeat note amid worries about the health of large US banks and broader fears over the global economy."The US economy is in the worst shape it's been for probably 50 or 60 years, so it's hard for equities to rally." The Dow has dropped 19.5 percent so far this year while Japan's Nikkei is down 17 percent and Hong Kong's Hang Seng is off almost 13 percent. Investors were disappointed by news of a 6.2 percent contraction in the US economy in the fourth quarter of last year that was far worse than the earlier government estimate of a 3.8 percent decline.In Australia, the benchmark S&P/ASX200 hit the lowest intra-day level since December 2003. "Uncertainty is driving the market right now," Man Financial broker Anthony Anderson said. "There's uncertainty about the economy and about what the US government is going to do about the problems." Mining giant Rio Tinto was one of the hardest hit stocks, sliding 6.6 percent on fears its 19.5 billion US dollar tie-up with Chinese state-owned firm Chinalco may not go ahead. Rival BHP Billiton lost four percent. Elsewhere in the region, Seoul fell 3.5 percent, Taipei shed 1.75 percent, Manila slipped 0.3 percent and Kuala Lumpur declined 0.5 percent.

KSE plunges down after Sharif Brothers case verdict

KARACHI: After Supreme Court’s verdict of declarating Sharif brothers ineligible, Karachi Stock Exchange (KSE) witnessed bearish trend on Wednesday as benchmark 100-Index shed more than 200 points to plunged down to below 5800 points.

KSE market capitalization up Rs1 bln this week

KARACHI: Market capitalization at Karachi Stock Exchange recorded Rs1 billion surge during this week.According to figures released by KSE, the valuation of listed companies increased 0.1 percent to Rs1.766 trillion compared to Rs1.765 trillion last week.

Asian stock markets fall after Wall Street tumbles

HONG KONG: Asian stocks market dropped Friday, with benchmarks in Japan and Hong Kong sliding about 2 percent or more, after gnawing economic fears sent Wall Street tumbling to its lowest close in more than six years.Investors found few reasons to wade into the market after the Dow Jones breached the levels it touched in November when the financial crisis sent global equities into a tailspin. The Dow's miserable finish _ its worst since Oct. 9, 2002, when the last bear market hit bottom _ spurred fears the markets' downturn is far from over. It also provided a clear sign that investors don't see a quick end to the worst global slowdown in decades despite the unprecedented economic measures taken by governments around the world. Japan's Nikkei 225 stock average lost 141.27 points, or 1.9 percent, to 7,416.38, and Hong Kong's Hang Seng dropped 324.59, or 2.5 percent, to 12,698.77. South Korea's Kospi shed 3.7 percent to 1,065.80 as the country's currency, the won, continued to lose ground against the dollar. In mainland China, Shanghai's benchmark gained 1.5 percent after the government said it would aid light industry and petrochemical suppliers in its latest stimulus measures. That came as the governor of the central bank of Australia, its own economy heavily reliant on Chinese demand for commodities, said China's economy has already bottomed. Overnight in New York, investors unloaded financial heavy weights Bank of America and Citigroup amid concerns that banks will need even more capital to restore their health. The Dow lost 89.68, or 1.2 percent, to end at 7,465.95, with broader indices slipping as well. The Standard & Poor's 500 index ended down 9.48, or 1.2 percent, to 778.94. The index finished above its Nov. 20 close of 752.44,which was its worst finish since April 1997. With U.S. futures lower, Wall Street was poised to drop further. Dow futures fell 58, or 0.8 percent, to 7,404 and S&P500 futures were down 7.3, or 0.9 percent, to 772.10.

Muslim world’s 100 top companies for 2008

DOHA: Pakistan State Oil (PSO) ranked 29th among the list of top 100 companies of the Muslim World released here.US Consultancy, Dinar Standard in their 5th Annual Ranking released the list of 100 top companies of 57 member countries of the Organization of Islamic Conference (OIC), which depicted Turkey’s 23 companies among the list bagging most, while the largest oil company of the world Aramco topped the list.PSO ranked 29th whose revenue as compared previous year was seen surged by 41 percent. Previous year PSO was ranked at 31st and Sui Northern Gas at 99th.

Bullish trend continues at KSE, Index crosses 6000 points

KARACHI: The bullish trend continued today as the Karachi Stock Exchange (KSE) has witnessed this morning a gain of more than 100 points in Index-100 during trading this morning after which it has crossed 6000-point psychological barrier.An increase in the activity and volume of trade was also witnessed yesterday as the chemicals and banking sectors were prominent. According to stock analysts, the increase in the investors’ confidence was mainly due to the encouraging results of trading in various companies. Besides, the reports of the peace agreements in northern areas have also made a positive impact.

Dawood Hercules announces cash dividend

KARACHI: Dawood Hercules Thursday announced a cash dividend of Rs1.5 per share. According to financial result released by Karachi Stock Exchange, the company posted a net profit of Rs3.6 billion during the year ended December 31, 2008. The earning per share was recorded at Rs28.Dawood Hercules registered a profit of Rs10.13 billion last year while its earning per share stood at Rs92.63.

KSE-100 Index up 40 points

KARACHI: Buying continued at Karachi Stock Exchange (KSE), pushing the benchmark KSE-100 Index by 40.51 points to close at 5,880.14.The turnover was higher at 191.596 million shares as price of 132 scrips recorded gains and 124 sustained losses while 13remained unchanged.A dealer said that the market was bullish in the morning and Index crossed 5900 level, but came down later when some profit taking was witnessed in leading scrips.The market capitalization was improved by about Rs 110 billion to Rs 1.835 trillion.Pak PTA was the volume leader with a turnover of 27.993 million shares followed by NBP with 13.441 million shares, OGDC 9.875 million shares, Jahangir Siddiqui Co 8.749 million shares and PTCL 8.155million shares.PTCL closed at 14.86, NBP 67.24, OGDC 53.56, NIB Bank 4.99,Jahangir Siddiqui 32.41, Pak PTA 2.70, UBL 43.13, Arif Habib Security25.64 and Bank Al-Falah 13.15.Rafhan Maize recorded the highest gain of Rs 65 to close at 1395followed by Ferozsons Lab which went up by Rs 5.68 to 119.47 while Shezan International dipped by Rs 14.53 to 276.08 and Tri-Pack went down by Rs 5.68 to 108.35.

Asian stocks tumble as bailout confidence fades

HONG KONG: Asian stock markets dropped early Wednesday as U.S. markets plummeted toward last year's lows and investors began losing hope that governments can rescue the world's economies from slipping deeper into recession.It marked the region's third day of declines, and followed a sell-off overnight on Wall Street that sent the major benchmarks to within a hair's breadth of their lowest close in more than five years.As President Barack Obama signed America's $787 billion measure to revive the world's largest economy, investors were still faced with a rash of downbeat news about everything form struggling U.S. carmakers to beleaguered banks and slumping business activity. Amid the growing evidence of decay, investors are still waiting for more specifics from policy makers on plans to turn around a flagging world economy.

Asian markets fall as Japan's recession deepens

HONG KONG: Most Asian stock markets fell Monday, as new figures showed Japan's economy contracted at its quickest pace in 35 years and Group of Seven finance ministers warned the global slump will drag on through most of the year.The fourth quarter GDP numbers out of Japan, worse than many forecasts, were a sobering reminder of the toll on Asia's export-driven economies as world demand collapses amid the worst slump in decades.Japan's Nikkei 225 stock average edged down 29.23 points, or 0.4percent, to 7,750.17, and Hong Kong's Hang Seng Index dropped 118.07points, or 0.9 percent, to 13,436.60. South Korea's Kospi lost 1.4 percent to 1,176.23. India's benchmark dropped more than 3 percent, Australia's stock measure eased 1.2 percent and Singapore's index was off 0.6 percent.Meanwhile, Shanghai's main index jumped 3 percent as mainland stocks extended their rally in the new year. In Japan, several exporters were hurt by the data showing the economy sank deeper into recession. Shares in Toyota Motor Corp. lost 0.7 percent, while electronics heavyweight Canon Inc. slid 1.2 percent. Sony Corp. lost 1.3 percent. Also weighing on markets were declines on Wall Street last week.

KSE buoyant, 100-Index surges by 227 points

KARACHI: Aggressive buying at Karachi Stock Exchange pushed the benchmark KSE-100 Index by 227 points to finish the last trading of the week at 5,625.Market analysts attributes today’s bounce back of share prices to SECP’s decision of waiving specific accounting requirements on investment portfolio losses.The Securities and Exchange Commission of Pakistan on Friday said it "has granted relaxation in the accounting treatment for equity securities held by companies."This relaxation is valid till Dec. 21, 2009, the regulator added.The share market on Friday opened buoyant and investors’ interest in various sectors kept it upbeat throughout the two sessions.The trade volume was recorded at 160 million shares.Bank Alfalah was the volume leader which gained Rs1 to close at Rs13.21.

Facing a Loss, Toyota Offers Job Buyouts, Ends Bonuses

By KATE LINEBAUGH
Toyota Motor Corp. is offering widespread job buyouts to its U.S. workers for the first time and cutting the workweek at some of its American plants by 10% to contend with falling sales.
The Japanese company also said it is eliminating bonuses for approximately 3,000 executives and salaried employees and cutting executive pay. In addition, the world's biggest car maker said there will be no wage increases for the foreseeable future and spring bonuses paid to hourly workers will be reduced and later eliminated.
"We are taking every measure we can to protect employment," said Mike Goss, a Toyota spokesman. The company is also adding several days in April when its North American plants will be closed as it seeks to reduce inventory levels by about half in the second quarter.
Toyota, which has a corporate philosophy of preserving employment, has avoided cutting jobs even in difficult times. Toyota has been paying two entire shifts of workers at two plants in the U.S. even with only one shift of production running. The company uses the time to try to hone the workers' skills.
Toyota has been hit hard in the downturn, forecasting its first annual loss in 59 years. Last week, the company posted a net loss of 164.7 billion yen ($1.83 billion) for its fiscal third quarter ended Dec. 31, compared with a 458.67 billion yen profit a year earlier.
Some of Toyota's rivals announced massive job cuts this week. Nissan Motor Co. said it would lay off 20,000 workers and General Motors Corp. announced 10,000 white-collar job cuts. GM also offered retirement incentives to 22,000 of its 62,000 United Auto Workers union members.
GM is aiming to reduce its labor costs to be more competitive with Toyota's. GM pays about $1,300 more in labor for each vehicle than Toyota does, according to data provided by the companies. The terms of the $13.4 billion federal loan that GM received require it to accelerate negotiations with the union to lower that differential.
As an inducement to leave the company, Toyota is offering all 25,000 of its North American workers 10 weeks of pay, two weeks of additional pay for every year of service and $20,000. The company doesn't expect a significant number of employees to take the option and has no target for its "voluntary exit program," Mr. Goss said.
That compares with GM's offer of $20,000 in cash to certain workers to leave the company, plus a $25,000 voucher toward a car purchase.
"With the reduced workweek and other cost-cutting measures, we plan to continue to fully utilize the team members we have," Mr. Goss said. The buyout program "is only meant as an option for team members who want to do something else."
The 10% workweek reduction will likely take place at several of its plants as early as April, with operations in San Antonio and Princeton, Ind., likely to adopt the program quickly. Both plants have lines producing vehicles at half capacity. Toyota's unionized plant in California and a small car plant in Canada are less likely to implement the reduction in weekly hours.

Selling pressure continues to gloom KSE

KARACHI: Bears dominated at the Karachi Stock Exchange (KSE) depriving the benchmark KSE-100 Index of 26 points which finished the day at 5,429.The share market opened in the red zone and kept seesawing throughout the session. The major Index at one stage also witnessed a level as a high as 5,563 points. But later the investors opted to book profit which led the Index to close at the present level.The trade volume was recorded at 160 million shares.OGDC remained volume leader which slipped paisas 10 to close at Rs48.18.Market analysts predict selling in the coming sessions.

Asia stocks sink as investors eye US stimulus plan

HONG KONG: Asian stock markets were mostly lower in erratic trade Tuesday, as investors’ awaited details of massive U.S. spending plans to revive the world's largest economy and bolster its troubled financial industry. Markets fluctuated throughout the day after rising sharply last week on hopes the U.S. stimulus measures will speed recovery in its recession-hit economy.Japan's Nikkei 225 stock average was down 23.09 points, or 0.3 percent, at 7,945.94, while South Korea's Kospi shed 3.82 points, or 0.3 percent, at 1,198.87. Benchmarks in Australia, New Zealand the Philippines and Thailand also fell. In Hong Kong, the Hang Seng was up just 0.4 percent at 13,824.45after swinging in and out of negative territory throughout the session. Markets in India and Taiwan also gained. In mainland China, Shanghai's key index _ which had surged about12 percent over the last six trading days _ rebounded from the red to close 1.8 percent higher as figures showed the country's inflation eased to just 1 percent in January.For the most part, Asian trade matched a listless session in the U.S., where markets wavered ahead of announcements from Washington. The Dow Jones industrial average fell 9.72, or 0.12 percent, to 8,270.87. The blue chips fluctuated between gains and losses 49 times during the session. The Standard & Poor's 500 index rose 1.29,or 0.15 percent, to 869.89. Wall Street futures pointed to a lower open in the U.S. Dow Jones industrial futures were down 63 points, or 0.8 percent, at 8,155.Standard & Poor's 500 futures were down 7.9, or 0.9 percent, at 857.2.

Stocks end mixed as investors look to Washington

NEW YORK – Investors are waiting for Washington to make the next move.
Stocks ended a quiet session with only modest changes Monday as Wall Street sought details of how the government will reshape a rescue plan for the financial industry. Investors are also watching as political leaders scramble to put together an economic stimulus program.
The market is awaiting a Tuesday speech by Treasury Secretary Timothy Geithner outlining President Barack Obama's plan to overhaul the government's $700 billion financial bailout package. Congress passed the measure last fall as the credit markets began to seize up on fears about rising levels of bad debt. Geithner had been scheduled to announce the plan Monday, but the White House pushed back the speech to focus on the stimulus bill.
The Senate is expected to pass an $827 billion stimulus bill on Tuesday. The government, however, still faces the challenge of reconciling the Senate bill with the House's $819 billion version that passed earlier. Republicans and Democrats have been at odds over the plan, which is designed to help pull the economy out of the worst recession in decades. The Obama administration is still pressing to have the stimulus measure on the president's desk for signing by the middle of this month.
Although Monday's session was quiet, investors showed some signs of nervousness after Obama, speaking during the first news conference of his administration Monday night, warned that a failure to act swiftly and boldly "could turn a crisis into a catastrophe."
After Obama spoke, Dow Jones industrial futures were down 68, or 0.83 percent, at 8,150. Standard & Poor's 500 futures were down 9.1, or 1.05 percent, at 856, and Nasdaq 100 futures were off 8.75, or 0.69 percent, at 1,267.
Federal Reserve Chairman Ben Bernanke is also expected to testify Tuesday at a House Financial Services Committee hearing on the central bank's efforts to revive lending during the financial crisis.
Investors were hesitant to make big moves Monday with so much news expected from Washington in the coming days.
"We saw a lot of buying ahead of the announcements," said Chris Johnson, president of Johnson Research Group. "Investors are simply biding their time to see if those expectations are going to be met."
The Dow Jones industrial average fell 9.72, or 0.12 percent, to 8,270.87. The blue chips fluctuated between gains and losses 49 times during the session.
Broader stock indicators were mixed after a big rally last week. The Standard & Poor's 500 index rose 1.29, or 0.15 percent, to 869.89, and the Nasdaq composite index slipped 0.15, or 0.01 percent, to 1,591.56.
The Russell 2000 index of smaller companies fell 2.76, or 0.59 percent, to 467.94.
Gainers outnumbered losers by about 8 to 7 on the New York Stock Exchange, where consolidated volume came to a light 4.93 billion shares compared with 6.38 billion traded Friday.
On Friday, the market largely overlooked a horrible jobs report and rallied in anticipation of the stimulus bill and changes to the financial bailout. The Labor Department said U.S. employers slashed 598,000 jobs in January. That left the unemployment rate at 7.6 percent, the highest level since late 1992.
The Dow industrials ended last week up 3.5 percent, the S&P 500 index rose 5.2 percent and the Nasdaq posted a huge 7.8 percent gain.
"Given that we had a good two-day rally and a strong performance last week, it's not surprising that we would see some softness," said Alan Gayle, senior investment strategist at RidgeWorth Investments. "There is a tug of war between the problems that we know are in front of us and the promise that is expected between the bank rescue package and the stimulus plan."
Bond prices ended mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was unchanged at 2.99 percent from late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.32 percent from 0.27 percent late Friday.
The dollar was mixed against other major currencies. Gold prices fell.
Light, sweet crude fell 61 cents to settle at $39.56 a barrel on the New York Mercantile Exchange.
Johnson cautioned that stocks could give up some of their recent gains even if investors are pleased by changes to the financial rescue fund and if Washington is able to pass the stimulus package.
"If everyone is betting on it, the payout on the other side is going to continue to decline," he said, likening the market's recent rally on predictions of an improved economy to what happens when too many gamblers wager on the same horse.
Amid the anticipation over the government's plans there were reminders that an economic recovery is still far off.
Nissan Motor Co. said it will slash 20,000 jobs, or 8.5 percent of its global work force, over the next year to cope with what the Japanese automaker expects will be its first annual loss in nine years.
Meanwhile, Barclays PLC warned that further asset write-downs — on top of the massive $11.9 billion booked for 2008 — were likely and said executive directors would not be getting any bonuses. However, Britain's third-largest bank by assets said its 2008 net profit fell only 1 percent, boosted by last September's acquisition of part of failed investment bank Lehman Brothers Holdings Inc.
Financial stocks led the market higher ahead of the latest version of the Treasury Department financial rescue plan. Bank of America Corp. jumped 76 cents, or 12.4 percent, to $6.89, while General Electric Co. rose $1.54, or 13.9 percent, to $12.64. GE has a big finance arm.
Overseas, Britain's FTSE 100 rose 0.37 percent, Germany's DAX index rose 0.48 percent, and France's CAC-40 rose 0.39 percent. Japan's Nikkei stock average dropped 1.33 percent.

Govt to offer shares worth Rs. 20 bn to overseas Pakistanis

ISLAMABAD: Advisor to Prime Minster on Finance, Shaukat Tareen said on Tuesday that poverty rate in Pakistan has climbed to 28 percent.Addressing a seminar here, Tareen said government’s top priority, at the moment, is to bring rate of inflation down to 9 percent. The seminar was held in collaboration with International Monetary Fund (IMF) and Pakistan Institute of Development Economics (PIDE).He said the government would sell shares worth Rs. 20 billion to overseas Pakistanis. Tareen said talks with the International Monetary Fund (IMF) over the Market Stabilisation Fund (MSF) have yielded positive results, details of which would be released soon.PM's advisor added that unit of new fund would be offered to overseas Pakistanis, he ruled out the news that foreign investors pulled out their capital from stock market.Shaukat Tareen said previous governments ignored important sectors of agriculture, production, human resource development, education and health which are key to progress. Speaking on the occasion, State Bank Governor, Dr. Shamshad Akhtar said that growing rate of unemployment and poverty posed greater challenge to the country which need to be addressed.

Fauzia Wahab to visit KSE on Wednesday

KARACHI: Chairperson National Assembly’s Finance Committee Fauzia Wahab will visit Karachi Stock Exchange (KSE) on Wednesday.KSE officials told Geo News on Saturday that she will undertake the visit on the invitation of KSE.During the visit Fauzia Wahab will meet KSE board members. She will brief them about the progress made in connection with demutualization of stock exchanges of the country and government’s policy for the development of equity market.

KSE market capitalization rises by 7.8%

KARACHI: The market capitalization at Karachi Stock Exchange (KSE) has recorded over 7.8 percent increase during this week.According to the figures released by KSE, the values of shares of the listed companies witnessed a rise of Rs23 billion in this week while the total market capitalization stood at Rs1.71 trillion compared to Rs1.578 trillion last week.

Share market upbeat at weekend; KSE gains 194 points

KARACHI: Investors continued to invest in their favorite stocks at Karachi Stock Exchange (KSE) on Friday, contributing 194 points to the benchmark KSE-100 Index which closed at 5,377.The stock market opened upbeat and the positive trend continued in both the sessions of the last trading day of the week.The trade volume stood at 190 million shares today.NIB bank was star performer in terms of volume which gained paisas 61 to close at Rs5.93.According to market analysts, the investors looked active in the share market on reports regarding easing of discount rate in the new monetary policy.

Stocks fall on fresh worries about economy

Updated at: 0125 PST, Friday, January 30, 2009 NEW YORK: Caution returned to Wall Street Thursday as weak earnings reports and record unemployment claims offered the latest evidence of the economy's struggles.Stocks fell sharply after soaring Wednesday on hopes the government will develop a way to remove bad debt from banks' books. All the major indexes lost more than 1 percent Thursday. Some pullback was to be expected after the Standard & Poor's 500 index put up its first four-day advance since November.Investors' mood darkened after companies from Eastman Kodak Co. to chip maker Qualcomm Inc. reported that profits tumbled the final three months of 2008.

Honda quarterly profit slumps, cuts annual target

TOKYO: Honda Motor Co.'s net profit tumbled 90 percent in the October-December quarter from a year earlier, hit by the global economic slump.Japan's No. 2 automaker also cut its net profit forecast for the current fiscal year through March by 57 percent, to 80 billion yen ($888.9 million) from 180 billion yen.Honda released its quarterly earnings Friday, which showed its net profit was 20.24 billion yen during the latest quarter, versus 200 billion a year earlier. Like other carmakers, Honda is cutting workers and scaling back production as demand for vehicles falls in key markets amid the global economic slump.

Asian markets end mixed on gloomy economic, corporate data

SINGAPORE: Asia-Pacific region ended mixed on Friday, weighed down by losses on Wall Street and poor investor sentiment after dismal corporate and economic data from the U.S., Europe, Japan and South Korea underlined the severity of the global slowdown. The Dow closed down 226.44 points, or 2.7% at 8,149.01, the Nasdaq closed down 50.50 points, or 3.2%, at 1,507.84 and the S&P 500 closed down 28.95 points, or 3.3%, at 845.14.The Japanese market tumbled, as investors expressed anxiety about poor earnings. Investors were particularly concerned about reports saying that Toyota's operating loss for the year to March may jump to around 400 billion yen from a 150 billion yen loss estimated previously. The benchmark Nikkei 225 index closed at 7,994, down 257 points or 3.12%, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange ended down 24 points or nearly 3% at 794.

Geithner, Bernanke work on $700B bailout overhaul

WASHINGTON – Treasury Secretary Timothy Geithner, Federal Reserve Chairman Ben Bernanke and other top banking officials met Friday to hammer out details of a major overhaul of the government's financial rescue program. One official said the Obama administration was close to unveiling the new plan.
This senior administration official, who spoke to The Associated Press, said the administration was on track to announce its overhaul of the $700 billion bailout program soon, possibly as early as next week.
This official, who spoke on condition of anonymity because the plan has not yet been unveiled, said that it would employ a full range of tools to get credit flowing again to families and businesses.
While there had been reports that the administration may decide against setting up a government-run bank known as a bad bank to purchase toxic assets, this official said the administration was still developing the part of the plan to deal with toxic assets and no final decisions had been made.
The administration is working on proposals for how it will use the last $350 billion from the rescue program. Some of the measures being considered could end up costing taxpayers hundreds of billions of dollars beyond the original $700 billion pricetag.
Geithner previously said the administration is weighing the possibility of using a bad bank to buy up toxic assets that are weighing on the books of financial institutions, a proposal that some analysts have estimated could cost well over $1 trillion.
In addition to conferring throughout the day Friday with senior Treasury Department officials, Geithner met with Bernanke and other top banking regulators including Federal Deposit Insurance Corp. Chairman Sheila Bair and John Dugan, the head of the Office of the Comptroller of the Currency. The OCC regulates the country's biggest banks.
Sen. Charles Schumer, D-N.Y., said the issue of how much more money to ask Congress to commit beyond the current $700 billion is a key item the administration is debating.
"Do you guarantee the bad assets or do you buy them? Do you guarantee all the bad assets or just the housing assets? There are a lot of unanswered questions," Schumer said.
Meanwhile, congressional auditors released a new report saying it may never be known whether the initial $700 billion plan accomplished its objectives because it will be difficult to separate the impact of the rescue program from the effects of other economic forces.
The Government Accountability Office said the Treasury Department had made progress in implementing about half of the nine reforms it suggested in an earlier report, including improving communication about the bailout and hiring more staff to run it.
But the department had not fully addressed eight of the recommendations, according to the GAO. "The lack of a clearly articulated vision has complicated Treasury's ability to effectively communicate to Congress, the financial markets, and the public on the benefits of TARP," the report said.
Treasury spokesman Isaac Baker said President Barack Obama and Geithner both agree that "much more needs to be done to better stabilize our financial system and get credit flowing again to families and businesses."
In an e-mail responding to the GAO report, Baker wrote the administration would soon announce an overhaul of the bailout program "that will increase lending and impose new measures to strengthen oversight, transparency and accountability so that taxpayers know where and how their money is being spent and whether it's achieving real results."
Geithner said earlier this week that the administration would announce its new proposals "relatively soon." Many expect decisions as early as next week.
The administration is trying boost confidence that it can get control of the worst financial crisis to hit the country since the 1930s. However, former Treasury Secretary Henry Paulson quickly committed the first $350 billion from the bailout program in an effort that so far has not yielded the expected results of stabilizing the situation and getting banks to resume more normal lending to consumers and businesses.
The bailout program has generated a huge amount of controversy. Critics charge that the Bush administration failed to impose enough restrictions on banks to make sure the billions they were receiving went to boost lending.
Obama on Thursday called it "shameful" and the "height of irresponsibility" that Wall Street had paid out $18.4 billion in bonuses last year.
The Treasury statement on Friday said that Geithner, who was sworn into office Monday night after being confirmed by the Senate, had spent part of this week in telephone conversations with the finance ministers of France, Germany and Australia on the joint efforts that will be needed to stabilize the global economy and restore growth.
Treasury said the discussions with French Finance Minister Christine Lagarde involved a review of France's proposals to overhaul the global financial architecture and the progress being made by the Group of 20 major industrial and developing countries.
Those talks are in preparation for a G-20 leaders' meeting in April that will be a follow-up to an initial summit chaired by former President George W. Bush in November.