On the last day of trading in July 2001, News-Prime Bank Composite Index of VIS closed at 3,507.36 points which was 128.10 points or 3.52 per cent down as compared to what it registered at the end of June 2001. The peak of 3,617.68 points it registered on the 3rd of July was never matched or crossed during the month whereas it ebbed as low as 3,505.60 points on the 30th of the month.

Economic Horizon:
Pakistan Perspective
DEVELOPMENT EXPENDITURE  
As regards expenditures, there was an under spending to the tune of PRs 16.2 billion. However, a closer scrutiny shows that the reduction in expenditures was not due to the reduction in the current expenditures but in development expenditures. The development expenditure side (PSDP) of the budget in Pakistan is the most vulnerable and always the ultimate choice of governments when the budget deficit is to be curtailed.

IN FOCUS
Sugar beet cultivation and production in Pakistan
Presently lot of discussions are taking place regarding the cultivation of sugar beet instead of sugarcane in Sindh in order to overcome shortage of irrigation water. We must analyse all the aspects with experts before bringing it to a logical end.

HOUSEHOLD INFLATION
NEWS - CresBank HOUSEHOLD INFLATION INDEX  
PRICES REMAIN stable  
It has been a couple of months now where stability is witnessed in the prices of quintessential household food and non food items. During July 2001, News-CresBank Household Inflation Index (HII) portrayed a nominal rise of 0.36 per cent in the average prices of 33 selected items.

SPOTLIGHT
Efficiency and inefficiency of Market system  
The fiat that market systems are superior is being advocated by not only senior ministers but by all those that are in touch with the international agencies. It is almost a fetish with them. Looking for ways and means to overcome the stagnation in the economy they are willing to try and do any thing.

Rating Round up
Publicly notified Ratings by JCR-VIS Credit Rating Company*  

IT trainers running out of steam  
Rakesh Kumar, an Indian college graduate, thought he was well on course for a high-rolling job with a fat salary when he enrolled for a three-year intensive course at a prestigious IT institute. But as he nears completion of the course, he and thousands like him are facing a depressed job market with an even bleaker future.

STOCK MARKET CONFIDENCE
News-Cres Bank 
Confidence plus
The level of investors' confidence in the stock market seemed to improved as the News-CresBank Confidence Barometer further soared and marked new highs during July 2001. The News-CresBank Confidence Barometer of VIS depicted investors' confidence at 52 per cent ('moderate to high' category) on an aggregate basis as against 40 per cent registered during June. A week-to-week analysis exhibits that the barometer attained a new high of 77 per cent in the 'high to very high' category which was in the third week of the month. On the other hand it only went as low as 25 per cent managing to float above the 'very low' category.
News-CresBank Confidence Barometer is a unique instrument that expresses in percentage the level of investors' confidence prevailing at the Karachi Stock Exchange taking into account each and every share transaction. The model electronically tracks the number of shares traded (adjusted for free float) at the KSE along with their respective prices, to find out the exact movement of investors' money. The investors place their funds world wide in other than safe-haven stocks when they are confident of the prevailing economic and political situation. On the other hand, when they are not so confident of the economic and political developments, they transfer their funds from those comparatively risky items to the safe-havens. This phenomenon is the foundation stone of News-CresBank Confidence Barometer.

CORPORATE CORNER

• Sapphire Fibres Limited
• Shabbir Tiles & Ceramics Limited