War clouds dampen activity
During February 2003, dismal performance of the Karachi stock market continued for the second month in a row. remained highly volatile during January 2003. Market activities remained marred primarily due to fear of war breaking out between the US and Iraq. Moreover, as every year, February is considered as one of the quieter months in terms of earnings releases and pay out streams.

Citigroup's China Bet
The planned launch of a credit card in China later this year by Citigroup and its local banking partner is about much more than persuading Chinese consumer to use more plastic. It also marks a broad new front in the United States bank's long campaign to be a major player in the world's most populous market.

IN FOCUS
Corporate sector and social responsibility
By Murad Ali Khan
The increasing global trend of corporatisation amid high economic stakes has also given rise to a voice of opposition and dissent against the process. The anti-corporate voices have become more and more vociferous even in developing countries.

Euro debt: two-year yields at historic lows
Two-year euro zone government bond yields hit fresh record lows and Bund futures new contract highs as geopolitical tensions over Iraq and North Korea further reinforced the allure of safe haven fixed-income assets.

Japan on 'red alert' on forex shifts
Japan's Ministry of Finance will be on "red alert" if there are unprecedented moves in the foreign exchange market, a senior official said on Monday, suggesting the ministry was prepared to intervene further to hold the yen down.

RATING ROUNDUP
Publicly Notified Ratings by JCR-VIS Credit Rating Company LIMITED
Adamjee Insurance Company Ltd.
Insurer Financial Strength (IFS) Rating AA-
ON RATING WATCH

SPOTLIGHT
Economic checks and balances
By Mehmood-Ul-Hassan Khan
Checks and balances seem to be the mantra of every government, as in a political system they provide sustainability in the economic process and ease implementation of macro policies. Reliability of the political system saves the economic interests of the investors. Economics works in integration, and the philosophy of checks and balances is vital for the quick economic revival and poverty alleviation.

USA's terms: the oil game
The American interest in safeguarding her energy supplies from the Middle East, holding highest oil reserves compared to the rest of the world, has led to finding a scapegoat - an Iraq caught between Israeli and American scheme of things ended up as a suitable target. Iraq having manufacturing and research capability to produce technologically advanced war weapons was a threat to American and Israeli interests in the region.

REFLECTION
SMEDA - ILO research: Creating a conducive policy environment for small enterprises
By Fuzail Zubaid Ahmad
The International Labor Organization's (ILO) inFocus Program on Boosting Employment Through Small Enterprise Development (IFP/SEED) initiated an international research project on the policy environment for small enterprises and its impact on the volume and quality of employment created by these enterprises. Seven countries, including Pakistan participated in this research effort. Seed Working Paper No. 29 is one in a series of country studies and surveys published by ILO's IFP/SEED. The research was funded through the Dutch Partnership Program with the ILO, and conducted in Pakistan by Small & Medium Enterprise Development Authority (SMEDA), which in turn perhaps sublet the opinion survey to Gallup but SMEDA officials drew conclusions.

STOCK MARKET CONFIDENCE
NEWS - CresBank STOCK EXCHANGE CONFIDENCE BAROMETER
Standing at low
During December 2001, level of investors' confidence in the stock market remained low as compared to that prevailed during the preceding month. The News-CresBank Confidence Barometer for December was measured at 38 per cent on an aggregate basis. Despite dropping down from 47 per cent of November, the barometer managed to maintain the same category of 'very low to low'. A week-to-week analysis reveals that the barometer managed to go as high as 44 per cent, in the middle of the month. and dipped as low as 33 per cent toward the month-end, hardly float above the 'very low' category.

The Stock Market Confidence Barometer developed by Vital Information Services Pvt. Ltd. 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 this Confidence Barometer.
-- M. Bilal Aftab

CORP CORNER