Tuesday, June 30, 2009

KSE index up by 43 points ahead of result announcement season

KARACHI: The Karachi stock market closed higher on the first day of the trading week Monday on buying activity ahead of result announcement season for June closing while investors remained optimistic for early announcement of leverage products.

The Karachi Stock Exchange (KSE) 100-share index gained 43.13 points or 0.60 percent to close at 7,206.17 points as compared to 7,163.04 points of the previous trading session.

The KSE 30-share index surged 37.16 points and closed at 7,640.24 points as compared with 7,640.24 points.

The KMI 30 index increased by 29.12 points to close at 10,701.79 points as against 10,672.67 points.

Analysts said the market opened on a positive note and this trend went on for the rest of the session. Investors focused on cement, banking and telecom sectors.

The market turnover went up by 37.22 percent and traded 95.74 million shares as compared to previous session’s 152.66 million shares. The overall market capitalisation surged 0.66 percent to close at Rs 2.134 trillion as compared with Rs 2.120 trillion. Out of total 303 companies, 145 closed in the positive zone, 143 in negative, while 15 remained unchanged.

“Announcement of emergent board meeting by PTC for entitlement invited renewed buying activity in PTC,” said analyst at Aziz Fida Husein and Co Husnein Asghar Ali. “OGDC and PPL are expected to get out of the way with dividend announcement in the year-end results to support the government’s fiscal issues.”

Likely hood of reduction in discount rate by 150-200 bps in the upcoming monetary policy announcement added to the demand of dividend paying stocks as buying spree in the stocks not only allowed the turnover to keep ticking, but the heavyweights PTC, PPL and OGDC allowed the 100-share index to maintain a positive posture, he added.

Although, not an ultimate solution, the talks of activating the deliverable forward is at least a sep ahead to address the leverage issue at the market.

“Buying activities were witnessed during major part of the session,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti. “PTCL announcement for shareholder entitlements, positive result outlook in cement, oil and fertilizer sectors, continued foreign interest played a catalyst role for a positive close.”

The KSE 100 index opened in the green zone with a gain of 19.16 points and at the end of the day closed at 7,206.17 points with a gain of 43.13 points. link...

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UPA Govt. plans to offer modern facilities in 28 cities



New Delhi, June 29 (ANI): The Centre is preparing to provide modern facilities in 28 more cities in addition to the existing 65 cities under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in the first 100 days of the UPA government.

“Infrastructure will also be developed in small and medium towns. In order to lessen pressure on large cities the government will launch the scheme for satellite town around mega cities to address basic infrastructure problems such as drinking water , sewerage, drainage and solid waste management. To provide better transport facilities in the growing urban areas, the government will provide all assistance to metro project in Bangalore, Chennai, Kochi and Delhi,” Union Urban Development Minister S. Jaipal Reddy said on Monday in the national capital.

Besides, the government will also make substantial assistance for the purchase of fifteen thousand 220-Modern Buses for city transport in 118 cities along with 61 mission cities.

Reddy informed that he has requested the Finance Ministry for removal of excise tax on buses made for public transport services. He said states will also be persuaded to waive local taxes on buses made for public transport.

To address the urban infrastructure deficit in north-eastern region , the Asian Development Bank – assisted North Eastern Region Urban Development Programme will be launched for implementation at a cost of about 1,371 crore rupees.

Five cities of Agartala, Aizawl, Gangtok, Kohima and Shillong will be taken up in the first phase. States of Arunachal Pradesh Assam and Manipur will be taken up next year.

To meet the acute shortage of houses for urban poor, economically weaker sections and lower income groups of city of Delhi, construction of about 65 thousand houses in different income groups will be taken up. In addition to this about 10 thousand houses will be taken up in phases. link....


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Bomb Threat Shuts Down Bangladesh Stock Exchange


Bomb Threat Shuts Down Bangladesh Stock ExchangeDHAKA: Authorities in Bangladesh shut down the Dhaka stock exchange an hour earlier than scheduled on Monday, following a bomb threat, an official said.

“We received a threat over telephone from an anonymous caller that the stock building will be blown off soon because there is a bomb kept inside it,” the official at the stock exchange said.

He said bomb experts were searching the building.

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Air India to pay salaries to 11,000 staff on July 3


Global airlines fear oil rally as losses mount

Air India, which was in the news for delaying payment of June salaries, has now announced that 11,000 employees, of its total workforce of 31,000, will be paid on July 3.

This move is consequent to the meeting between the management and three unions representing nearly 20,000 employees here on Monday. The airline will now hold another meeting on July 4 to discuss when the balance staffers will get their June salaries.

Employees who will be paid on July 3 largely comprise the clerical cadre classified under grades 1-9 in the erstwhile Air India and 1, 2, 3 and 6 in (the former) Indian Airlines. The list of 11,000 also includes 600 junior crew members.

Incidentally, Air India's monthly wage bill is in the region of Rs 350 crore.

While its top management has been pressing for extra financial support from the Government, the message coming through from the latter is clear in that the airline will have to either shape up or ship out.

All eyes are on the Budget to see what kind of announcement will be made in terms of some aid to Air India.

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UPDATE 1-361 Degrees slips off early gains in HK debut

HONG KONG, June 30 (Reuters) - Chinese sportswear retailer 361 Degrees International (1361.HK) rallied about 19 percent before paring back gains in the afternoon session of its trading debut on Tuesday, weighed down by a fall in the broad market.

Analysts warned that it might be too early to read signs of a recovery in Hong Kong's IPO market, although they projected the second half of the year to show more proof of an impending turnaround.

The stock hit a high of HK$4.28 in morning trade then slowly slipped to HK$3.89 at the close, up 7.8 percent from its IPO price of HK$3.61.

The benchmark Hang Seng Index finished down 0.8 percent at 18,378.73, off a high of 18,883.24.

Aiming to raise funds to expand its retail network and raise brand awareness, the company's global offering of 500 million shares was oversubscribed, with an expanded 150 million shares offered in Hong Kong and 350 million allocated overseas.

"The stock did pretty well, in line with expectations. But fundamentally, 361 Degrees is an average stock," said Anita Hwang, analyst at Mirae Asset Securities.

Noting the share price pullback, Hwang said: "That happened a lot with many of the recent IPOs," explaining that recent share offers attracted liquidity in initial trade and then lost steam when company fundamentals came into focus.

The next IPO in the pipeline, shampoo maker Bawang International, could be a better market performer, based on oversubscriptions to the offering and the interest generated by its warrants in Singapore, she said.

Audit and professional services firm PricewaterhouseCoopers (PwC) said IPOs in Hong Kong would accelerate in the second half of the year, forecasting that IPO funds in 2009 could rebound to nearly HK$100 billion, after dropping 66 percent year on year to HK$17 billion in the first six months.

"We have seen an improvement in the second quarter of this year in the Hong Kong stock market, as money is flowing into stocks as the risk tolerance level steadily improves on the back of hopes for a recovery in the second half of this year," said Edmond Chan, partner at PwC.

"This will create a favourable environment for large Chinese enterprises to list in Hong Kong. The investment focus in the second half will be mainly in the sectors of infrastructure, retail, consumer goods and services, industrial and property-related," he said. link....

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Monsoon Covers Central India

MUMBAI -- India's annual monsoon rains have covered most parts of the key oilseed-growing central state of Madhya Pradesh, and further advanced towards the northern region, the India Meteorological Department said Tuesday.

The annual monsoon rains will likely advance over northern parts of the country over the next one to two days, the department said on its Web site.

"Now, only some parts of Rajasthan, Punjab and Haryana (in northern India) are remaining, which are expected to be covered in the next one or two days," said a department official, who didn't want to be identified.

Central India is likely to receive moderate rainfall over the next week, the official said.

Conditions are favorable for the monsoon's progress over remaining parts of Uttar Pradesh - a major sugar cane and rice producing state - as well as Uttarakhand, Himachal Pradesh and Jammu and Kashmir, the department said.

Isolated heavy rainfall is also likely over the west coast and northeastern states, West Bengal and Sikkim, Bihar, east Uttar Pradesh and north Madhya Pradesh during the next 48 hours, it said.

The country received normal to above normal rainfall in the last five days, another weather department official said.

India's annual monsoon rains were deficient in June due to a two-week lull in the annual rains that followed the appearance of a cyclone two to three days after the rains hit the country's coast on May 23.

The country's June-September monsoon season is important for summer-sown crops including oilseeds, rice and sugar cane, as 60% of cultivated areas are rain-fed. link...

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Petroleum products’ prices set to rise in July


ISLAMABAD: Prices of domestic petrol, diesel and kerosene oil are likely to be increased between Rs6 to Rs7.5 per litre for the month of July due to increase in the crude oil prices at the international markets, the Oil and gas Regulatory Authority (Ogra) has calculated.

The petroleum product pricing for the month of July would be the first oil prices to be announced by the government with imposition of carbon surcharge replacing the petroleum development levy (PDL).

Informed sources told Dawn that the OGRA calculations forwarded to the petroleum ministry said that the prices of petrol would increase by Rs6.2 per litre, Rs6.5 per litre on light diesel, Rs7.5 per litre on kerosene oil.

While for the most consumed petroleum product the high speed diesel (HSD) the state owned oil marketing the PSO has calculated an increase of Rs6 per litre on HSD.

‘The HSD prices are not determined by Ogra as it was a deregulated product and the oil companies do it themselves,’ said an Ogra official adding that the final decision was made by the government.

Crude oil prices in international markets have increased by around $10 per barrel to more than $69 per barrel at the gulf markets during the month of June against May.

The official said that the increase calculated by the Ogra and the PSO would be passed on to consumers as the PDL would be abolished from July which was flexible tax and the government could reduce the PDL if the pass-on was to be avoided.

Currently the PDL on key products was Rs10.54 per litre on petrol (motor spirit MS), Rs6.88 per litre on kerosene oil, Rs3.95 per litre on Light Diesel Oil (LDO) and Rs14.32 per litre on HOBC. While the PDL on high speed diesel is Rs8.53 per litre.

‘However carbon surcharge is a fixed variable but it also brings transparency in the system,’ said state minister for finance and economy Hina Rabbani Khar, adding that the new tax would also be supportive in rationalising oil imports.

The government estimates that Rs122 billion would be collected from the newly introduced carbon surcharge in the fiscal 2009-10 from the petroleum products.

Incidentally the rate of carbon surcharge was very close to the current value of PDL as it is Rs10 per litre on petrol (motor spirit MS), Rs6 per litre on kerosene oil, Rs3 per litre on Light Diesel Oil (LDO), Rs14 per litre on HOBC and for high speed diesel (HSD) it is Rs8 per litre. link....

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Sensex takes support at 14500; realty, power, banks fall

MUMBAI: Markets were witnessing selling pressure on Tuesday as investors resorted to profit booking ahead of Union budget. All the sectors were

in the red led by losses in realty, power and banks. Subdued European markets also hurt sentiments.

At 2:30 pm, Bombay Stock Exchange’s Sensex was at 14568.59, down 217.15 points or 1.47 per cent. The index touched an intra-day low of 14529.83 and high of 14907.48.

National Stock Exchange’s Nifty was at 4325.45, down 65.50 points or 1.49 per cent. The broader index hit a low of 4305.95 and high of 4426.75 in trade so far.

BSE Midcap Index was down 2.15 per cent and BSE Smallcap Index declined 1.73 per cent.

Amongst the sectoral indices, BSE Realty Index declined 6.31 per cent, BSE Power Index tripped 2.24 per cent and BSE Bankex was down 2.19 per cent.

DLF (-7.37%), Tata Motors (-6.99%), Jaiprakash Associates (-6.58%), Sterlite Industries (-5.72%) and Reliance Infrastructure (-5.18%) were amongst the Sensex losers.

Hindustan Unilever (1.07%), ONGC (0.83%), TCS (0.44%) and Sun Pharmaceuticals (0.25%) were amongst the gainers.

European markets were choppy with negative bias. At 2:30 pm, FTSE 100 was down 0.18 per cent and CAC was up 0.05 per cent and DAX was unchanged. link....



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Turkish company will upgrade Pakistan’s F-16s

ANKARA: A Turkish defence company said on Monday it will modernise 42 of Pakistan’s F-16 aircraft, which are part of Pakistan’s air fleet. The project would begin in October 2010, the defence company Tusas said in a written statement sent to Reuters.The deal would be worth around $75 million and the upgrade work would be carried in Tusas facilities. The project would be completed in 46 months. link....

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Mangla Dam closure adds to power woes

ISLAMABAD: Power generation at Mangla Dam has been suspended due to a technical fault, resulting in 1,100-megawatt electricity shortfall that may take two to three days to restore, sources in the Water and Power Ministry have said.

Official sources at the National Power Control Centre told Daily Times a fire had erupted at one of the power generation units of Mangla on Monday, forcing its closure. They said the system had been overburdened for the past few days, and had been operating at its maximum limit.

Currently, Tarbela Dam is producing 2,000MW, independent power producers are producing 5,000MW, WAPDA is generating 3,000MW, and smaller units are generating 1,500MW of electricity.

Also on Monday, Gujranwala Electric Power Company Chief Executive Officer Muhammad Ibrahim Majoka claimed the recent power breakdown in Gujranwala was due to the fault at Mangla Dam, Online reported. staff report/online. link....

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Oil jumps above $73 on dollar fall, Nigeria attack

Market Index Charts
SINGAPORE -- Oil prices jumped above $73 a barrel Tuesday in Asia as a weakening U.S. dollar and attacks on oil installations in Nigeria helped push prices to eight-month highs.

Benchmark crude for August delivery was up $1.05 to $72.54 a barrel by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange after trading as high as $73.38. On Monday, it gained $2.33 to settle at $71.49.

Oil has surged from below $35 in March in part on investor concern that massive U.S. fiscal stimulus spending will eventually spark high inflation. Investors often buy commodities such as crude as a hedge against a weakening dollar and inflation.

The euro gained to $1.4108 on Tuesday from $1.4078 on Monday.

Prices were also bolstered by another round of attacks Monday by Nigerian militants, who this time partly damaged and shut down a Royal Dutch Shell offshore oil platform. Nigeria is Africa's largest oil producer.Crude trading volume was about three times more than normal Tuesday in Asia, said Clarence Chu, a trader at market maker Hudson Capital Energy in Singapore.

China boosted state-set gasoline and diesel prices Tuesday to reflect rising global crude costs, days after indicating plans to increase its strategic crude oil reserves by 60 percent over the next five years.

The government raised the retail price of gasoline by 8.6 percent and diesel by 9.6 percent, the fourth change in prices this year.

Crude reached $73.23 a barrel in intraday trading earlier this month, the highest since October.

In other Nymex trading, gasoline for July delivery rose 3.03 cents to $1.97 a gallon and heating oil gained 1.75 cents to $1.80. Natural gas for July delivery jumped 3.0 cents to $3.97 per 1,000 cubic feet.

In London, Brent prices rose $1.11 to $72.10 a barrel on the ICE Futures exchange.

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Bernard Madoff is unlikely to be the last of the great swindlers

The maximum sentence should serve as a catharsis of sorts for Madoff' s victims. The long prison term might also send a discouraging message to some younger would-be Ponzi schemers.With luck, another concrete result may be that the Securities and Exchange Commission and other watchdogs will look a bit harder at allegations of fraud. They missed Madoff, despite being presented with reasonably well documented evidence of his $65bn scam.
More nebulously, the scandal has caused some investors to insist on safeguards like third-party custody of assets and proper audits. But even supposed checks of that sort didn't stop some sophisticated investors throwing money at Madoff anyway - and many of his victims probably lacked the resources to do much due diligence of their own.
But there's little else to learn, because the giant fraud involved entirely fictitious investing. The Enron debacle in 2001 revealed specific disclosure and governance problems that Congress tried, with mixed success, to address. The financial crisis found Madoff out, because when investors needed their cash he didn't have it. Beyond that, though, his scheme was just a con trick, like so many before it.
The big lessons are age-old ones. Investors should diversify, and they should check the credentials of anyone they entrust with their money.
They should resist the appeal of personal attention and perceived exclusivity, and fight the allure of above-average returns at below-average risk, no questions answered.
As for swindlers, not all of them may be deterred. Charles Ponzi himself, shortly before his death in 1949, still thought his scam "the best show that was ever staged" for his Bostonian victims, and thought they should consider it "cheap at the price". Even Madoff is paying with (probably) relatively few years in jail, after decades of the good life and having seemingly managed to avoid taking his family or friends down with him.
There'll be more scandals like Madoff's, not least because people will always be hopeful and greedy. Madoff's sentence may end one tumultuous chapter. But the book of swindles will continue to expand. link....

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Sunday, June 28, 2009

Jobs warning at Jaguar Land Rover


More job cuts may be made at Jaguar Land Rover, after the carmaker reported a £280m 10-month loss, owner Tata Motors has warned.
Tata also said that further shutdowns were likely at Jaguar Land Rover's factories in Castle Bromwich, Coventry, Solihull and Halewood, Merseyside.
Jaguar Land Rover currently employs 14,500 people, having made 450 redundancies at the start of the year.
Sales of Jaguar and Land Rover cars fell 32% in the 10 months to 31 March.
The number of vehicles sold fell to 167,000 from 246,000 a year earlier, as worldwide demand fell sharply due to the recession.
Tata said that while Jaguar Land Rover sales slumped "considerably" last year, one highlight had been "a very strong consumer response" to the Jaguar XF model.
The £280m loss was for the same period to 31 March, which was Jaguar Land Rover's first 10 months under the ownership of India's Tata.
Government support
Jaguar Land Rover said the firm was continuing talks with the UK government about the possibility of some form of financial assistance.
"The government has said that it is willing to help as it regards Jaguar Land Rover as a viable company with good long term prospects," said a spokesman for the Department for Business, Innovation and Skills.
"We recognise that trading conditions for the car industry are difficult at the moment.
"Talks are progressing with Jaguar Land Rover and Tata over terms and arrangements of both the short and long term financing."
Tata's own losses
Tata bought Jaguar Land Rover for £1.7bn in June 2008 from Ford.
The warning about possible further job cuts at Jaguar Land Rover came as Tata reported its own losses.
Tata made a net loss of $520m (£315m) in the year to 31 March, which includes the 10 month impact of Jaguar Land Rover.
It was the firm's first annual loss for eight years. link....

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Vilified symbol of greed Madoff to hear prison term


Bernard Madoff, who became a symbol of greed in the financial crisis for masterminding Wall Street's biggest investment fraud, faces the rest of his life in prison in one of the stiffest punishments for white-collar crime when he is sentenced on Monday.

The courtroom drama will unfold with the swindler hearing angry defrauded investors speak of their financial ruin. As he makes what could be his final appearance in public, Madoff, 71, will read a statement before a judge hands down a decision.

"Mr. Madoff has been very stone-faced throughout the whole process. He doesn't seem to have a lot of remorse," said Anthony Sabino, professor of law and business at St. John's University in New York. "To date, he has refused to implicate anyone else."

More than six months after Madoff's arrest, U.S. prosecutors remain uncertain how much was involved -- such was the complexity of the financial web he wove around the world to operate his Ponzi scheme.

In a Ponzi scheme early investors are paid with money from new clients.

About 1,341 account holders lost about $13 billion in the classic "cash in, cash out" fraud, according to court papers. They also say $170 billion flowed through Madoff's principal account over decades and last November, Madoff claimed accounts held nearly $65 billion, when in fact he had never traded any securities, investigators said.

Madoff, a former nonexecutive chairman of the Nasdaq stock market, pleaded guilty in March to 11 charges, including securities fraud, money laundering and perjury that carry a combined maximum sentence of 150 years. The only other person charged so far is his outside accountant.

LIFE TERM SOUGHT

"It is unlikely that he will come back out," Jayne Barnard, a law professor at the College of William & Mary in Williamsburg, Virginia, said, echoing the view of several legal experts on the likely sentence for an audacious scheme.

U.S. prosecutors argued in court papers on Friday that sentencing Judge Denny Chin should make sure Madoff spends the rest of his life in prison because of the "unique scope and duration" of his crimes.

"Madoff's crimes were the product of a series of decisions made over the course of years, and it was within his power to stop his crimes at any point in time," the government said ahead of the 10 a.m. EDT proceeding in Manhattan federal court.

The arch thief and his wife of 45 years, Ruth Madoff, have been stripped of all their luxury homes and possessions. His wife is being allowed to keep $2.5 million in cash, according to an agreement with prosecutors.

Madoff's lawyer Ira Lee Sorkin asked the judge to impose a sentence of less than life, suggesting a 12-year term or 15 to 20 years as sufficient.

Victims have sent more than 100 letters to the judge, most demanding the maximum punishment allowed. They describe entire savings lost for several generations of families, mortgages unpaid and elderly people unable to pay for medical coverage.

Madoff's wife, two sons and his brother, who have all been the target of swindled investors' vitriol and suspicion, were not expected to attend the hearing. Since his arrest by the FBI in December, the gray-haired Madoff has made all of his court appearances alone, except for his lawyers. link....

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Protests against power outages continue


LAHORE - The loadshedding-hit consumers of the Lahore Electric Supply Company (Lesco) Thursday continued their protest against the unabated power outages and government’s resolve of raising power tariff.
The enraged people took to the streets and roads to give vent to their annoyance. They shouted slogans against the government and Water and Power Development Authority (Wapda). They said that prolonged power breakdowns had virtually crippled the industrial sector and halted business activities. They urged the government to take corrective measures so that the business community could do their businesses with peace of mind.
Scores of shopkeepers and traders of Anarkali Bazaar staged a protest rally on the Mall Road against hours long power breakdowns. They burnt tires and blocked traffic for a long time. They demanded instant end to loadshedding that had put the life of citizens at the stake.
Vexed with the frequent power outages the residents of Islampura and Sant Nagar also came out of their homes and protested against the power failure and inefficiencies of the Lesco authorities.
They complained that instead of controlling line losses and making arrangements to stop electricity thefts, the authorities were busy in making proposals to further increase the electricity prices. They alleged that instead of controlling line losses and making arrangements to stop electricity thefts, the authorities were busy in making proposals to further increase the electricity prices. link....

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Pakistan has an estimated 5 million drug addicts

The Karachi Port Trust (KPT) has estimated that there are about 5 million drug addicts in Pakistan, and that the invasion of drugs is affecting younger people in the country.

KPT Chairperson Nasreen Haque revealed this fact during a seminar at its Staff College on Friday, which was aimed at creating awareness about drug abuse and to prevent it in the society.

She further said that drugs that reach the country under various garbs are threatening to control people's lives.

She also stressed the need for measures to keep the invasion of such drugs in check.

She said that the country has a colossal problem at hand, and that a committed response was required to address it effectively.

Nasreen insisted that synergistic efforts were required to implement various drug prevention and treatment strategies.

She pointed out that the drug situation was witnessing changing trends, and that people were increasingly turning to Charas, Opium and Heroin.

According to her, synthetic drugs like Ecstasy and Ketamine had also gained popularity and are finding place in parties held in posh localities.

She congratulated the United Nations Association of Pakistan for organising the awareness program, and said that the social disease is to be fought at all levels - individual, parental, community, societal, administrative, legal and educational. link...

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Oil price hovers at $70 amid pipeline attacks

Oil was little changed on the week as a vacillating market continued to muse on the durability of a rally that has seen crude prices double since February.

Further rebel attacks on pipelines in Nigeria, which threaten to disrupt supplies from Africa's largest exporter of crude, provided a focal point in a relatively thin week for market-moving economic data.

The Nigerian news divided analysts, with some playing down its price sensitivity, while others, such as Olivier Jakob of Petromatrix, an oil consultancy, warned that the market was still not pricing in the fundamental impact of the events in Nigeria. Commerzbank's analysts, however, said they saw oil hovering around $70 for the rest of the year.

"We do not envisage prices moving significantly beyond this level, as we believe the Saudis would increase production from their ample spare capacity so that a $70 price is maintained," they said.

Nymex August West Texas Intermediate fell 1.1 per cent over the week to $69.16 a barrel], while ICE August Brent fell 0.39 per cent to $68.92 ].

Other commodities markets were mixed.

Sugar prices yesterday hit a three-year high after a poor start for India's monsoon season triggered worries that the world's largest producer and consumer of the sweetener could face another disappointing crop, exacerbating the global sugar deficit.

ICE July raw sugar surged to 16.69 cents per pound, the highest level since July 2006, while the October contract, which will become the market's benchmark next week, traded well above 17.50 cents per pound. Sugar posted a weekly gain above 9 per cent after July prices yesterday pared gains to 16.46 cents amid some profit taking.

Traders remain convinced that sugar will rise further in the second half of the year.

Base metals bounced around in range-bound trade, with copper recovering from concerns over Chinese demand earlier in the week to end up 1.8 per cent to $5,050 a tonne. Gold prices were 0.6 on the week to $939 a troy ounce. link...

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Miliband rebukes Iran after arrest of British embassy employees


David Miliband, the Foreign Secretary, has issued a sharp rebuke to Iran after the arrests, which are part of a campaign by the clerical regime in Iran against what it has portrayed as foreign interference in its politics.
The employees were arrested on suspicion of playing a role in the demonstrations that followed Iran's disputed presidential election. Those demonstrations, which saw calls for a re-run amid allegations of widespread vote rigging, have now largely fizzled out after a crackdown by regime.Mr Miliband dismissed the allegations of British involvement in the demonstrations as preposterous. He called for the detainees to be released immediately, saying: "This is harassment and intimidation of a kind that is quite unacceptable. We want to see [them] released unharmed. These are hard-working diplomatic staff and the idea that the British Embassy is somehow behind the demonstrations and protests that have been taking place in Tehran in recent weeks is wholly without foundation."
Fars, a semi-official Iranian news agency, first announced the arrests and said the staff had helped foment protests against the results of the June 12 election, which returned Mahmoud Ahmadinejad, the hardline president, to a second term. "Local employees at the British embassy who had a considerable role in recent unrest were taken into custody," Fars said. "This group played an active role in provoking recent unrest."
The embassy employees were rounded up on Saturday and a number were released yesterday. A relative of one of those detained said the staff member had disappeared: "He went out yesterday morning and I have been unable to reach him since his mobile phone is switched off. Since then I have had no news of his whereabouts."
Mr Miliband said Britain had made a strong protest to the Iranian authorities and had raised the issue with his European Union counterparts gathering in Corfu.
Last week both countries threw out mid-ranking diplomats in a tit-for-tat round of expulsions, but British officials are wary of being drawn into a protracted dispute with Iran which could serve to distract attention from the domestic pressure to overturn the result of the election.
Mir-Hossein Mousavi, a former prime minister, has repeatedly rejected offers of a partial recount of ballots in a show of unprecedented defiance against the leadership. But the regime has rebuffed popular pressure for a new election, instead turning the blame on foreign governments.
Although demonstrations have been quelled, there is growing evidence of a fierce power struggle at the highest levels of the clerical leadership.
It has emerged that a central figure in the battle for supremacy, Grand Ayatollah Javadi Amoli, has criticised the handling of the election.
Ayatollah Amoli is a leading backer of an overhaul of the system by which Iran has a Supreme Leader. He has been a proponent of a collective leadership to exercise power at the highest level. Hashemi Rafsanjani, another senior power broker who is at odds with Ayatollah Khamenei, the current Supreme Leader, is said to be lobbying for a three-man supreme leadership body that would include Ayatollah Khamenei but dilute his power. link...

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Saturday, June 27, 2009

Jackson's Death Means Multimillion-Dollar Woes for Concert Promoter


The refunding of nearly 750,000 tickets to Michael Jackson's 50-show London concert run is going to be an extremely complex and probably messy process.But that's only the beginning of the headaches for promoter AEG Live, which stands to lose millions of dollars because of the pop icon's death and will need to scramble to find another act to fill its O2 Arena in London.

The promoter and the primary and secondary ticket vendors are expected to refund money to all fans who purchased tickets for the show, making it hard, depending on AEG Live's insurance policy, for the company to recoup the estimated $40 million it spent to book Jackson and promote the event.

"It's a complex and messy situation, and it has to be resolved quickly, as I understand it, by U.K. law," Ray Waddell, senior editor of touring for Billboard, told ABCNews.com this morning. "It would be bad enough if it were just straight up ticket sales through Ticketmaster, but a significant portion of these sales were through the 'secondary' or resale market as producer/promoter AEG Live partnered with UK reseller Viagogo on these dates." link....

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Jackson London concert promoters coy on refunds


LONDON (AFP) — The organisers of Michael Jackson's comeback tour dates in London remained guarded Saturday about refunds for ticket holders following the singer's death.
Jackson fans from around the world had rushed to snap up tickets for some 50 "This Is It" performances at London's O2 Arena which were due to start on July 13.
The reclusive star made his final public appearance to unveil the sellout gigs in March.
Reports in Britain say about 50 million pounds has been spent on 750,000 tickets.
Promoters AEG Live made no comment immediately following Jackson's death, but a spokeswoman for the company said late Friday: "On behalf of the entire AEG organisation we extend our deepest condolences to Michael Jackson's family and friends during this tragic time.
"Full ticket refund information and procedures will be released early next week for all Michael Jackson 'This Is It' shows.
"Fans are advised to hold on to their ticket vouchers/proof of purchase."
Most tickets for the concerts cost between 50 pounds and 75 pounds.
Trading website eBay, where tickets had fetched prices of up to 1,300 pounds, said fans who had bought seats for the shows through its website would receive a refund.
"Ebay... will ensure all buyers on the site can receive a full refund for their ticket purchase," a company spokeswoman said, adding that more details would be announced next week.
Ticket exchange site viagogo and retailer Seatwave have also said they will refund fans.
The Times newspaper reported Saturday that AEG had hoped to recoup much of the estimated 10 million pounds it would have cost to stage the concerts from merchandising and corporate entertainment.
With that possibility now quashed, question marks also remain over the extent of AEG's liability for the Jackson concerts.
Quoting industry sources, the Times said insurers could face a bill of around 50 million pounds, but that was expected to be a fraction of the cost to AEG of cancelling the 50 dates and leaving the O2 venue empty for months.
Most estimates put the figure at 300 million pounds. link....

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Friday, June 26, 2009

Protests against power outages continue


Protests against power outages continue

LAHORE - The loadshedding-hit consumers of the Lahore Electric Supply Company (Lesco) Thursday continued their protest against the unabated power outages and government’s resolve of raising power tariff.
The enraged people took to the streets and roads to give vent to their annoyance. They shouted slogans against the government and Water and Power Development Authority (Wapda). They said that prolonged power breakdowns had virtually crippled the industrial sector and halted business activities. They urged the government to take corrective measures so that the business community could do their businesses with peace of mind.
Scores of shopkeepers and traders of Anarkali Bazaar staged a protest rally on the Mall Road against hours long power breakdowns. They burnt tires and blocked traffic for a long time. They demanded instant end to loadshedding that had put the life of citizens at the stake.
Vexed with the frequent power outages the residents of Islampura and Sant Nagar also came out of their homes and protested against the power failure and inefficiencies of the Lesco authorities.
They complained that instead of controlling line losses and making arrangements to stop electricity thefts, the authorities were busy in making proposals to further increase the electricity prices. They alleged that instead of controlling line losses and making arrangements to stop electricity thefts, the authorities were busy in making proposals to further increase the electricity prices. link.....


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OIL PRICES REBOUND ON WEAK DOLLAR

Oil prices rebounded on the back of a weak dollar and the raging Iranian political crisis.

New York's main futures contract, light sweet crude for delivery in August, rose $US1.74 from its closing price Monday to end at $US69.24 a barrel as the contract made its debut Tuesday.

London's Brent North Sea crude for August climbed $US1.82 to close at $US68.80.

Gold for August delivery gained $US3.30, or 0.36 per cent, to $US924.30 an ounce on Tuesday.

July silver rose 14 cents, or 1.02 per cent, to $US13.845 an ounce.

July copper futures gained 6.65 cents to $2.1985 a pound. link.....


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ADB provides $500 million for poverty safety nets



ISLAMABAD: The Asian Development Bank would provide $500 million to Pakistan to assist the government in macroeconomic stability efforts and fund a targeted safety net program for the poor.

In this regard, the ADB and government signed an agreement for two loans to Pakistan totalling US$500 million here on Friday, APP reports.

The US$500 million approved by ADB’s board yesterday known as AETP2, is the second sub-program of the Accelerating Economic Transformation Program (AETP).

The loans support short- and medium-term reform actions being taken by Pakistan’s government in response to the global economic and financial crisis.

The loans also carry forward measures enacted by the government in 2008 to cushion the impact of skyrocketing global fuel and food prices.

Under AETP2, a loan of $150 million from ADB’s Special Fund will target the Benazir Income Support Program (BISP), a cash transfer program focusing on poor women.

Under the scheme, the female head of qualified families receives 1,000 rupees per month to help defray the rising cost of food and other household expenses.

Created in October 2008, the BISP social safety net program is expanding its current coverage of 3.5 million families to five million families next year and aims to reach seven million families by 2011.

An additional $350 million in ADB loans will help Pakistan move to more market based pricing of wheat and electricity and remove subsidy distortions, while improving targeted social safety nets, resolve long-standing accumulated debt in the energy sector to improve the bankability of this sector, and attract much needed investments.

AETP2 will also help Pakistan strengthen financial intermediation.

‘The AETP2 program will benefit millions of poor and vulnerable families through targeted cash allocations, and by removing poorly targeted subsidies in the wheat and energy sectors, while freeing up much needed funds for development,’ said Rune Stroem, Country Director of ADB’s Pakistan Resident Mission.

‘These targeted interventions will help enable Pakistan to meet its urgent social and developmental needs in FY2009,’ Stroem added. link.....


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India monsoon rain 'below normal'

Indian officials say that monsoon rains in the country are likely to be "below normal" triggering off fears about crop failure and high food prices.

Forecasters say that rainfall is likely to be lower than predicted in April, when they said it would be near normal.

The government says there is no need for panic, and that heavy rains in July are likely to avert a drought.

A heat wave is sweeping the country and rains are delayed in many parts. Rains usually last from June to September.

"It [the monsoon] is late," federal minister Prithviraj Chavan told reporters.

North-west India appeared to be worst affected by the slow rains with only 81% rains forecast.

Critical

Monsoon rains are critical to India's farm prospects, which account for a sixth of economic output.

Up to 70% of Indians are dependent on farm incomes, and about 60% of India's farms depend on rains. Irrigation networks are dismissed by critics as inadequate.

The summer rains are crucial to crops such as rice, soybean, sugarcane and cotton.

The Indian media has been full of reports about the patchy rains so far.

Delhi heat wave
A heat wave is scorching the country

"Praying for rain, bracing for worst" headlined the Hindustan Times on its front page on Wednesday.

The newspaper said that in at least eight states, monsoon rains so far had been 60 to 90% below normal.

"There is concern but no worry as yet. There is still time," Farm Secretary T Nanda Kumar told the newspaper.

One analyst said delay in the rains in some parts of India could hit economic growth.

"Delay in monsoon will play the spoilsport and may hit GDP by at least 1 to 1.5 percentage points," stockbroker VK Sharma, told the Reuters news agency.

Economists agree that the delay will cause further stress in a country where food prices are already high.

"The delay is not a good signal. Food prices are already high and any delay could push food prices higher. Food price inflation could emerge as a concern," said DK Joshi, principal economist at credit ratings agency Crisil.

Politicians in many states are holding special prayers for the rains - the farm minister in central Chhattisgarh state held a prayer for the state to get rains soon. link....


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Quotes on the climate bill

"I reiterated America's commitment to stand with Germany and lead in confronting the energy and climate change crisis.... It's my hope that the United States will match that commitment today, when our House of Representatives votes on a critical energy bill that will promote a new generation of clean, renewable energy in our country." — President Barack Obama after a morning meeting with German Chancellor Angela Merkel.
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"This is, indeed, a sea change that I see, this upcoming bill anticipated today in the House on climate, that this really points to the fact that the United States are very serious on climate." — German Chancellor Angela Merkel.
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"In the midst of the worst recession in a generation, this administration and this majority in Congress are prepared to pass a national energy tax that will raise the cost of energy on every American family." — Rep. Mike Pence, R-Ind.
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"This bill doesn't solve every problem, but passage today means that we build momentum for the debate coming up in the Senate and negotiations for the treaty talks in December which will put in place a global solution to the climate crisis." — Former Vice President Al Gore.
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"To support such a bill is to abandon the real leadership that is called for at this pivotal moment in history. We simply no longer have the time for legislation this weak." — Daniel Kessler, spokesman for Greenpeace.
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"I do believe a weak bill is better than no bill ... I think today's vote establishes a good deal of momentum. There's a head of steam, hopefully, wind- and solar-generated steam." — Michael Gerrard, director of the Center for Climate Change Law at Columbia Law School.
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"This legislation is the first step toward an energy policy for the 21st century. It will lead to technology innovation, good domestic jobs, less use of oil and more protection of the world we live in." — Timothy E. Wirth, president of United Nations Foundation.
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"This is clearly a movement away from coal and the industry will be phased out because the proposed bill will dramatically increase the cost of coal to the point where it's not competitive with other fuel sources. In addition, it will force utilities to switch from lower cost coal to natural gas or other more expensive energy sources." — Rob Murray, a vice president at Murray Energy Corp.
"It's the most important environmental and energy legislation in our nation's history." _ Fred Krupp, president of the Environmental Defense Fund. link...

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Sensex rebounds 419 pts, Nifty rises 3.15%

New stock weightage method, global cues buoy sentiments.


Gainers

The Bankex, Capital Goods and IT were among the best performing sectoral indices on BSE

The market breadth was positive as 1,689 scrips advanced and 937 declined



Our Bureau

Mumbai, June 26 After many days of relentless profit booking that dragged down stocks, the markets rose sharply on Friday as the Nifty introduced the free float method for computation of stock weightage. Positive global cues too provided support.

The Sensex, which in the last two weeks had dipped more than seven per cent, surged 419 points to close at 14764.60, while the broader Nifty was up 3.15 per cent at 4375.5 on Friday.

Institutional investors who track Nifty as their benchmark were forced to add more of those stocks whose weightage has increased following the free float methodology for the index, said Mr Alex Mathew, Head of Research at Geojit BNP Paribas Financial Services.

The index weightage till Thursday was being calculated using the constituent companies’ market caps.

Larsen and Toubro, ICICI Bank and Infosys are among the scrips which stand to gain the most from this switch, said brokers. ICICI Bank was up 8 per cent on the NSE, L&T was up 5.3 per cent and Infosys by 3.8 per cent.

ICICI Bank, Sterlite and L&T were the top gainers on BSE, gaining between five per cent and eight per cent. Sun Pharma, Ranbaxy and Tata Steel lost the most among the Sensex scrips.

“Sentiment in the global markets was rather positive which was reflected in our markets,” said Ms Anita Gandhi, Head of Institutional Business at Arihant Capital Markets.

US markets up

The Dow and the Nasdaq closed up 2.08 per cent on Thursday, the FTSE was up 0.49 per cent at the time of closing of the Indian markets on Friday. The Nikkei rose 0.83 per cent and the Hang Seng 1.78 per cent.

With Friday being the first day of the July series in the Futures and Options segment, investors were taking fresh long positions after Thursday’s expiry of the previous series, said marketmen.

The onset of the monsoon in Mumbai on Friday could have also helped boost sentiment, they said.

The Bankex, Capital Goods and IT were among the best performing sectoral indices on BSE. The only index loser was BSE Health Care.

The market breadth was positive as 1,689 scrips advanced and 937 declined. The BSE Midcap index rose 2.4 per cent and the small cap index 1.89 per cent.

After having been net sellers for nine consecutive trading sessions, FIIs were net buyers of equity on Friday for Rs 551 crore. The DIIs were net buyers for 333.95 crore. link....


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