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Money Market, Forex and General News - 03-06-2009
Wednesday, June 3, 2009

MONEY MARKET :

Money market opened at 12.75 percent. Market traded within the band of 11-13 percent. After making a high low of 12.75 percent & 11.25 percent respectively, market closed at 11.75 percent.

FOREX:

Inter bank opened at 81.20 & 81.25.Market topped at 81.23 but later on rupee gained strength against greenback and made a low of 81.10.After gaining thirteen points at bid and offer side inter bank closed at 81.07 & 81.12.

GENERAL NEWS:

Sluggish economic activity and poor credit off take impaired the banking sector’s profits by 23 percent in just three months of current year.

Banks’ windfalls went down to Rs 16.455 billion in Jan-March 2009 as compare to last year’s Rs 21.417 billion, depicting a massive decline of Rs 4.962 billion.

Foreign banks’ profit declined to Rs 38 million from last year’s Rs 1219 million while Local banks’ profit declined to Rs 16.417 billion from Rs 20.198 billion. Absence of foreign capital inflows, huge government borrowing from banks and banks’ hesitation towards lending due to rising Non Performing Loans (NPLs) kept the credit growth slow which eventually hurt
bottom line of the banks.

General Motors Corp., one of the worlds’s leading automobile manufacturers and a century old company, has finally filed for the bankruptcy. The company which was once amongst top ten companies of Fortune 500 has now been delisted from New York Stock Exchange and Dow Jones Industrial average. This is the third largest bankruptcy in Unites States’ corporate history and largest ever in Manufacturing sector. The bankruptcy would cause more than twenty thousand job cuts The U.S and Canadian government will have a stake in reorganized GM. Furthermore, another U.S ailing auto giant Chrysler, is also offered for sale to Italian automaker Fiat.

Labels: Economy and Business, Pakistan Economy