Draft CRA: SECP to seek viewpoints of corporate entities, stakeholders

ISLAMABAD (February 10, 2009): The Securities and Exchange Commission of Pakistan (SECP) has decided to notify the Corporate Rehabilitation Act (CRA) in the next three months, incorporating viewpoint of all private stakeholders. This was decided in a meeting of the committee, constituted by the Ministry of Finance to review and finalise the draft CRA, held under the chairmanship of acting Chairman of SECP Salman Ali Shaikh.

Application of IFRSs, IASs: ICAP not competent to issue any relaxation

KARACHI (February 10, 2009): It is not within the ambit of Institute of Chartered Accountants of Pakistan (ICAP) to issue any relaxation from application of International Financial Regulatory Standards (IFRSs) or International Accounting Standards (IASs). However, Securities and Exchange Commission of Pakistan (SECP), being regulators, are empowered to lay down specific treatments in certain special circumstances which prevail over the requirements specified in the IFRS/IAS.

UPDATE: Hasbro Net Drops 30%, Hit By Weak Holiday Sales And Dollar's Rise

By Matt Andrejczak

SAN FRANCISCO (Dow Jones) -- Hasbro Inc. reported Monday a 30% decline in quarterly net income, as the holiday sales season proved to be a disappointment and the dollar gained strength.

The world's No. 2 toy maker said it earned $93.6 million, or 62 cents a share, in the fourth quarter. In the year-earlier period, Hasbro made $133.7 million, or 84 cents a share.

Sales fell 5% to $1.23 billion from $1.3 billion. Hasbro said sales started to slow in October as weak consumer spending exacerbated. To spur demand and help toy retailers avoid excess shelf inventories, Hasbro worked with toy retailers to mark down toys priced above $200 and slower-moving items, such as toys tied to movies Indiana Jones and the Hulk.

Excluding the impact of the rising dollar against other global currencies, Hasbro said sales would have risen 1%. Sales of Nerf, Star Wars, Playskool, Littlest Pet Shop and Easy Bake were among the strongest in the fourth quarter.

On Wall Street after the report, Hasbro shares rose 6% to $25.01 in early trading.

Chief Executive Brian Goldner said in a conference call the toy maker's business will improve after March, when it begins to ship toys for movies Transformers 2 and Wolverine and further expands its digital-gaming partnership with Electronic Arts.

"As the year progresses, we would expect to see more momentum around our major movie initiatives and as we roll out our many new brand initiatives this fall" Goldner said.

Last week, toy rival Mattel rattled investors with news that its profit fell 46% on weaker sales.

UPDATE: Amazon Debuts Kindle 2 But Sticks To Same Price

By Jeffry Bartash

NEW YORK (Dow Jones) - Amazon.com on Monday unveiled a slimmer, lighter version of the Kindle, its electronic book reader, with a host of new features but the same price point as the original device.

At a press conference in New York, Amazon Chief Executive Jeff Bezos demonstrated the new device, which will be available for shipping on Feb. 24. Dubbed the Kindle 2, the device is thinner than the popular 3G iPhone and can hold more than 1,500 books. The company also said it has extended the battery life of the product by 25% from the original version.

The new device comes barely a year after Amazon launched the original Kindle, which has been sold out for much of that time. The company has never disclosed specific sales figures for the device, though analysts guess that as many as 500,000 units of the device have been bought.

"We've been selling ebooks for years, and guess what? It didn't work, until fourteen months ago," Bezos said at the event.

The Kindle, originally launched in December 2007, is the first reading device that allows customers to buy and download books without a connection to a computer. The goal of the nation's largest Internet retailer is to use the Kindle to remake the book market for the digital age.

The new version of the device is just 0.36 inches thick and weighs just over 10 ounces. The device offers 2GB of memory capacity that Amazon says will hold more than 1,500 books compared with just 200 books for the original version.

The extended battery life will allow Kindle 2 users to read for 4-5 days on a single charge if the device's wireless service is turned on.

BOND REPORT: Ten-year Treasury Yields Above 3% Before Auctions

By Deborah Levine

Treasurys fell Monday, pushing yields to their highest in more than two months, before the government floods the market with its biggest quarterly refunding package on record.

Ten-year note yields rose 2 basis points, or 0.02%, to 3.01%. It earlier reached 3.05%, the first time above 3% since November.

Two-year note yields increased 2 basis points to 1.01%, the first time above 1% since early December.

Shorter-term securities fared better, with yields a little lower in early trading, amid disappointment in further delays from Washington in the details of a plan to support banks and continuing debate in Congress over the stimulus package.

"This week is all about the challenge of massive supply," said strategists at RBS Greenwich Capital. "The economic environment remains very bond friendly but issuance is problematic."

The Treasury Department sold $31 billion in three-month bills at a rate of 0.345%.

It also sold $30 billion in six-month bills at a rate of 0.488%.

The government's quarterly sales of three- and 10-year bonds and 30-year bonds are the main focus of the market.

On Tuesday, $23 billion in one-year notes and a record $32 billion in three- year notes will be on sale. Wednesday will bring $21 billion in 10-year notes, followed by $14 billion in long bonds the following day. Both long-term debt sales are for the most ever.

Sri Lanka Government: Thousands Of Civilians Pouring Out Of War Zone

COLOMBO (AFP)--At least 10,000 civilians have escaped Sri Lanka's war zone in the last four days, the government said Sunday, as the president warned Tamil Tiger rebels to surrender unconditionally or be killed.

The Tigers are fighting for survival after being driven back into a small patch of jungle by a military offensive that threatens to end their 30-year armed campaign for an independent ethnic Tamil homeland.

"Over 10,000 civilians have come to Kilinochchi while 139 others have come to Jaffna since the Independence Day [Wednesday]," the ministry said. "Among the rescued civilians are over 2,800 children and about 3,000 women."

The ministry added that medical care, food and water were being provided at the frontlines for the fleeing civilians, who it says were among those held by the Tigers as "human shields."

Government reports of the civilians' movement and recent army advances cannot be verified as journalists, aid groups and international observers are not allowed into the conflict zone.

Towns Wiped Out In Australian Fires

SYDNEY (AFP)--Australia's rampaging wildfires have wiped out a pretty resort village and could have largely destroyed another town, authorities said Sunday.

At least 65 people have died in the fires in southeastern Victoria state, with the village of Marysville and the town of Kinglake among the hardest hit.

"Marysville, which was one the loveliest townships in Victoria, if not Australia, has just about been wiped out," said Pastor Ivor Jones, whose own home in the town was razed.

Victoria state's Country Fire Authority said only one building was left standing in the popular tourist hamlet, although there were no fatalities among the residents.

Deputy Prime Minister Julia Gillard said whole towns would need to be rebuilt and the federal government was preparing a massive disaster relief effort.

Shocked survivors in Marysville told the Australian Broadcasting Corp. how the flames devoured houses one by one, with exploding gas canisters being hurled through walls.

Aerial pictures taken by the broadcaster show a town flattened, with neatly laid-out streets surrounded by rubble and blackened trees.

The village, northeast of the Victoria state capital Melbourne, had just 1,000 permanent residents, but its beauty and proximity to winter skiing had attracted city dwellers who built holiday and retirement homes there.

Egypt Hopes For Gaza Truce Accord In Next Few Days-Spokesman

CAIRO (AFP)--Egypt is hopeful that a Gaza truce accord between Israel and the Palestinian Islamist movement Hamas can be reached in the next few days, foreign ministry spokesman Hossam Zaki told AFP on Sunday.

"There are positive signs that in the next few days we will reach an understanding on a truce and and a partial reopening of crossing points [into Gaza]," Zaki said.

Egypt has been mediating indirect talks for a lasting truce since the end of the 22-day Gaza war, which killed at least 1,330 Palestinians and 13 Israelis.

The fighting ended when both Israel and the Gaza Strip's Islamist rulers called separate ceasefires on Jan. 18.

However, the fragile calm has been tested by Palestinian rocket attacks on Israel and retaliatory air strikes.

On Saturday, a spokesman for Hamas said it expected an agreement with Israel on the the reopening of border crossings into the Gaza Strip "within the next few days."

MARKET SNAPSHOT: Government Moves May Boost Stocks, But Not Necessarily Dividends

By Kate Gibson

Friday's stock advance had investors banking on more fiscal stimulus from the government, but other possible congressional action had Standard & Poor's Index Services cutting its projected dividend rate on the S&P 500.

"Due to recent events, including potential congressional action that might limit dividend payments, we are reducing the indicated dividend rate on the S&P 500," said Howard Silverblatt, senior index analyst at Standard & Poor's.

However, hopes for quick congressional passage on an economic-stimulus plan helped propel equities higher Friday, with an ugly January unemployment report proving less dire than many feared.

The Dow Jones Industrial Average (DJI) gained 217.52 points, or 2.7%, to 8, 280.59, up 3.5% for the week. The S&P 500 (SPX) rose 22.75 points, or 2.7%, to 868.60, a weekly rise of 5.2%, while the Nasdaq Composite (RIXF) added 45.47 points, or 2.9%, to 1,591.71, up 7.8% from last Friday's close. .

Standard & Poor's Index Services said Friday that it expects S&P 500 dividends to decline 13.3% in 2009, the worst yearly drop since 1942, when dividends fell 16.9%.

Standard & Poor's now expects $214.66 billion in dividend payments for S&P 500 companies in 2009, compared to $247.9 billion last year.

LATIN AMERICAN MARKETS: Bovespa Paces Gains As Investors Eye Rate Cuts, U.S. Stimulus

By Carla Mozee

Latin American equities surged Friday and finished the week with gains as investors hoped for the U.S. Senate to pass President Barack Obama's economic stimulus package.

In Brazil, a higher-than-expected reading on monthly consumer prices bolstered market sentiment that an interest-rate cut is on its way. The benchmark Bovespa index rose 4% to 42,755.50, its best closing since Oct. 3.

Stocks also were higher in Mexico, Chile and Argentina.

All sectors traded in the black, with market heavyweight Petrobras (PBR) holding onto a 4.2% gain even as oil prices retreated. Crude for March delivery fell 2.4% to $40.17 a barrel on the New York Mercantile Exchange.

Shares of steel producers leaped, with prices for metals up. Companhia Vale do Rio Doce (RIO) climbed 3.6%, Gerdau (GGB) rose 4.2% and Usiminas tacked on 3.6%.

The market's view that the country's central bank will continue to cut rates when it meets in March strengthened Friday after the census bureau said January's IPCA consumer price index rose 0.48% due to seasonal factors and increases in food prices. The index rose 0.28% in December, vs. an expected increase of 0.41%.