100-Index closes unchanged

KARACHI: The 100-Index of Karachi Stock Exchange (KSE) closed unchanged at 9,187.10 on Tuesday on lack of demand, dealers said.

The turnover was slightly up at 197,300 shares as five scrips recorded gains while one sustained losses and five remained unchanged out of a total of only 11 companies. The market capitalisation was improved by Rs 36.061m to Rs2.820 trillion.

A dealer at a leading brokerage house said that though trading volume improved a bit, but lack of interest prevailed throughout the session. National Assets was the volume leader with a turnover of 159,000 shares followed by Pak Com Leasing 28,500, Pak Datacom Ltd 3,200 shares, Sitara Energy 2,000 shares and Modaraba Al-Mali 1,500 shares.

Sitara Energy closed at 19.62, KESC 3.80, Pak Datacom 51.41 Millat Tractors 163.92, National Assets 44 paisa and Southern Electric 3.65. Pak Datacom recorded the highest gains of Rs 2.44 to 51.41 and Sitara Energy moved by 97 paisa to 19.62 while Modaraba Al-Mali dipped by 50 paisa to 2.25. - APP

LSE closes with no change

LAHORE: Lahore Stock Exchange witnessed no change on Tuesday as LSE-25 index opened and closed at 2825.36 points. The market’s turnover also remained unchanged with open and close figure of 500 shares, while all the 79 active scrips remained equal as no one could move up or down.

There was no major gainer or loser of the day, however, Pervez Ahmed Securities emerged as volume leader with turnover of 500 shares. - APP

ISE remains stable

ISLAMABAD: Share prices at the Islamabad Stock Exchange (ISE) remained stable here on Tuesday where the ISE-10 index close at 1998.14 without witnessing any change.

A total of 11,858 shares were traded in the market, which were up by 2,364 shares when compared with previous day’s trading of 9,494 shares. Out of 13, the share prices of 3 companies registered increase while that of one company witnessed decreased and share prices of 9 companies remained stable. The share prices of Pak Datacom increased by Rs.1.33, per share and share prices of Modarabe Al Mali dipped by Rs 0.75 per share.

Bank Al Falah, Maple Leaf Cement and Kot Addu Power remained the top trading companies in Tuesday ‘s trading with 5,810, 2,501 and 1,000 shares respectively. - APP

World stocks tumble as economic fears deepen

LONDON: World stock markets tumbled Tuesday, dragged down by heavy losses the previous day on Wall Street after the United States confirmed it was in recession and a raft of grim data suggested worse lay around the corner.

A steep interest rate cut by Australia’s central bank and fresh steps by Japan to tackle the credit crunch failed to soothe investor fears.

Stocks slumped in Asia, with Tokyo closing down 6.35 percent, Hong Kong sliding 5.0 percent, Seoul shedding 3.3 percent and Sydney sliding 4.2.

In early European trade, London was down 1.43 percent, Frankfurt lost 1.60 percent and Paris fell 1.41.

“We believe that last week’s stock rally went too far and markets were ripe for a correction,” said Dariusz Kowalczyk, chief investment strategist at CFC Seymour in Hong Kong.

“The reason for the rebound in risk aversion was dismal data from across the globe, mostly regarding the manufacturing sector in November,” he said.

US manufacturing slumped to a 26-year low in November, highlighting the abrupt downturn in the world’s biggest economy, a survey showed.

The National Bureau of Economic Research (NBER) said the US economy had been in recession since December 2007.

Investors were spooked by a report in the Wall Street Journal that investment bank Goldman Sachs -- which has fared better than many rivals during the financial crisis -- is likely to post a quarterly loss of as much as two billion dollars.

Australia’s central bank slashed interest rates by 100 basis points -- a larger cut than expected that dropped the official cash rate to 4.25 percent, its lowest level in more than six years.

But the rate cut “didn’t do anything to boost the market,” said CommSec market analyst Juliette Saly.

Japan’s central bank meanwhile outlined new measures to make it easier for commercial banks to borrow money using corporate debt as collateral, aiming to unclog credit markets that are vital to the economy. - AFP

EU thrashes out economic plan

BRUSSELS: European Union ministers sought ways on Tuesday to boost investment and consumer spending while Australia slashed interest rates in the latest actions to combat the global financial crisis.

The Bank of Japan moved to ease the plight of Japanese companies squeesed for cash but Toyota Motor Corp said it would cut management bonuses by 10 percent as it cuts back production in the face of collapsing demand.

The world’s number one carmaker was just one of many global companies struggling to cut costs in the face of the worst financial crisis since the Great Depression.

With the United States in recession according to the nation’s business cycle arbiter, Asian stocks tumbled and European markets got off to a shaky start on Tuesday as fear about the economic outlook gripped investors.

“Equities will have a rough ride in the start of December, and this will continue until we see a ray of hope on the macro side,” said Franz Wenzel, strategist at AXA Investment Managers in Paris.

Finance ministers from all 27 EU nations gathered in Brussels to discuss a European Commission proposal for governments to spend an extra 1.2 percent of GDP from their budgets to boost investment and consumer demand.

On Monday, however, Germany rejected pressure to do more in Europe’s battle against recession and said it would not to be lured into what Chancellor Angela Merkel called a “senseless” public spending contest.

Finance Minister Peer Steinbrueck said Germany had already unveiled plans worth 31 billion euros, or 1.25 percent of its gross domestic product (GDP), to tackle the downturn.

RECESSION BUT NO COLLAPSE

Steinbrueck offered a crumb of comfort, saying the European economy was in recession it but not about to go into meltdown.

“The European economy is not facing collapse, please,” he said in Brussels on Monday night.

His words would give little to cheer to Spain. The Madrid government said Spain’s registered joblessness rose by 171,243 people or 6 percent in November, the eighth straight month of increase that took the number of unemployed to 2.99 million.

The Reserve Bank of Australia (RBA) cited the perilous state of the global economy when it cut the benchmark cash rate by a full percentage point to 4.25 percent and left the door open to more cuts.

“The economy is poised on a knife edge and the RBA is going to keep cutting until it starts to get traction with consumers and housing,” Macquarie senior economist Brian Redican said.

Britain, the euro zone and New Zealand will almost certainly cut interest rates later this week. In addition to more rate cuts, the U.S. Federal Reserve is weighing other responses with its benchmark rate nearing zero.

Britain’s construction sector shrank last month at its fastest pace in more than a decade, a survey showed on Tuesday.

The Bank of Japan kept its key rate at 0.30 percent an emergency meeting to deal with a cash squeeze on Japanese companies, which face slumping export markets.

It unveiled 3 trillion yen ($32 billion) in new measures to ease the squeeze in corporate funding. The BOJ will accept a wider range of corporate debt as collateral and launch a new scheme to make it easier for banks to make loans to companies.

The global crisis, triggered by U.S. mortgage defaults that destroyed banks from Wall Street to Iceland, has piled pressure on policymakers to ramp up their response, including sweeping interest rate cuts by the major central banks.

MORE U.S. CUTS FEASIBLE

Fed Chairman Ben Bernanke said on Monday further cuts in the U.S. benchmark rate below 1 percent were “certainly feasible.” He also said the central bank could take steps such as buying “substantial quantities” of longer-dated U.S. government debt.

But such unusual measures could ultimately lead to other problems because market prices would be distorted by official tinkering, economists said.

Stocks tumbled across Asia on Tuesday amid more pessimism. Japan’s Nikkei share average fell 6 percent and the index of leading European shares shed 1.5 percent, adding to a sharp sell-off on Monday.

China, widely expected to remain the main driver of the global economic growth next year, was also under pressure to do more to counter plummeting demand and rising unemployment.

Chinese policymakers will meet next week to plot how to secure growth of at least 8 percent in 2009, an official said.

The pain also reached deeper into the workplaces of big financial players.

Switzerland’s Credit Suisse AG and Britain’s HSBC are axing hundreds of jobs as the worst financial crisis since the 1930s continues to bite.

Credit Suisse will shed 650 jobs and HSBC, Europe’s biggest bank, said it was cutting 500. Around 90,000 jobs have been axed at major global banks since September. - Reuters

‘15% of the total national income comes from transport sector’

ISLAMABAD: MassComm Solutions Islamabad and National Highway Authority arranged an educating and thought provoking conference on “Traffic Management for Road Safety, Security & Environment” in a hotel on Tuesday.

The objective of the conference was to create awareness about the issues of traffic mess up among the people and to provide basic education in this regard.

Tariq Shabir, MNA was the Chief Guest on the occasion. He said, while addressing, that in Pakistan, road network carries more than 90% of passengers and 95% of freight traffic.

According to reported figures, 7,000 persons are killed, 25,000 become disabling/ paralyse annually and almost 100 billion rupees financial loss becomes the fate of our nation.

The issue is vital for special people, as these individuals need a particular set of directions and systematic set-up of traffic to follow.

Tariq Shabir said that the figures quoted are the reported ones, while a huge number of cases go unchecked; like the ones in rural areas or that involves little damage.

Most of the victims are pedestrians, single-earners of the family and are reported to belong from low socio-economic class.

As a result, social welfare resources are exhausting at a storming pace with an enormous increase in number of beneficiaries. This is how road accidents also prove to become a major hurdle in poverty alleviation.

Ghalib Bandeshah, DIG Traffic police Lahore, began his speech in an informal manner and managed to attract the attention of the audience instantly. He highlighted the pivotal role of the Traffic Wardens and the causes of accidents.

The speech was highly appreciated by those present at the venue.

Shehryar Piracha fro Toyota Indus Motors, said that 15% of the total National Income comes from transport sector, whereas the growth rate is 5-10% per annum.

On the other hand the country faces a loss of 111.6 billion rupees due to road accidents.

He told that using seat belts decreases 60% of deaths, whereas it is 45% in case of using helmets.

Indus motors is working extensively on road safety programs and research projects along with Jinnah post-graduate medical college, Agha khan university, NED university and Ministry of Health.

Ali Bin Usman, road safety consultant for National Highway Authority told that road accident rates can be decreased effectively with the help of “Three E’s” i.e. Engineering, Education and Enforcement of road laws.

Asif Khowaja, CEO IRFTE, said that cautions and defensive driving by a driver is providing safety to other citizens as well as to him. During driving we need to care about the rights of pedestrians when they cross the road through Zebra Crossing, he said. - Online

Tarin seeks business community’s cooperation for success of government reform agenda

Karachi: Advisor to Prime Minister for Finance, Shaukat Tarin says government wants to bring reforms in social and economic sectors at the earliest through its 9-point agenda with cooperation of private and public sector.

In a meeting with delegation of Karachi business community, he assured them due representation will be ensured not only in policy making process directly influencing trade and industry but in all important government committees. ``We are taking all security measures which are imperative for promtoing trade and industry,'' Tarin said.

KCCI President, Anjum Nisar said industrial & trade sector is facing severe threats arise due to economic recession, deteriorating law & order situation, high interest rates, increased inflation, high cost of doing business. Government should take measures to invigorate shaken confidence of trade & industrial sector.

He urged measures to bring down high interest rates to single digit. Alongside increase in power & gas tariffs, multiplicity of taxes also further increased operation cost, consequently most of industrial sector is working under capacity and many closed.

He demanded relief in taxation mechanism, implement one window operation, decrease 1% GST, levies like social security & old age benefit be exempted from export industry and insurance be allowed.

He urged proper agreement be executed between Afghanistan & Pakistan. Afghan Transit Trade Agreement resulted in quasi-legal smuggling by unscrupulous elements. - PPI

FBR collects Rs423b revenue for July-Nov 2008

ISLAMABAD: Federal Board of Revenue (FBR) has collected Rs 423 billion revenue during the first five months of the current fiscal year, showing a 24.4 per cent increase as compared to the same period of last fiscal, FBR sources told APP.

Giving the details about the provisional figures, the sources added that the Federal Board of Revenue has collected Rs68.73 billion for the month of November 2008, taking the overall collection figures to Rs423b as against Rs340b collected during the corresponding period last year.

Giving the break-up of the tax collection figures, they said that Rs137.2b were collected in the form the Direct Taxes against the target of Rs144.5 billion upto November 2008.

Similarly, Rs185.1 billion were collected in the form of Sales Tax against the Target of Rs173.8b, showing an increase of 11.3 percent over the target.

The Federal Excise Duty also witnessed an increase of 3 percent over the target.

The FED was collected Rs44.3 billion till November 30,2008 against the target of Rs41.2 billion. - APP

In the head of Custom duty Rs61.6b were collected upto November ,2008 against the target of Rs53.7b, showing an increase of 7.9 percent the sources added. - APP

Gold dips at Rs19,842

KARACHI: Gold dipped by Rs172 to Rs19,842 per 10 grams in the local market Tuesday as its international price also declined to $ 773 an ounce, sources said.

Silver also fell to Rs270 per 10 grams. - APP