I) LSE OVERVIEW 2 a. Operational Insight 2 b. Associated Issues 2 II) REGULATORY DEVELOPMENTS 2

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1 CONTENTS Page I) LSE OVERVIEW 2 a. Operational Insight 2 b. Associated Issues 2 II) REGULATORY DEVELOPMENTS 2 III) MARKET OVERVIEW 3 a. LSE - Chart 1 3 b. Market Profiles 4 c. Volatility Profile 4 IV) VALUE COMPARISON 4 a. Interest Rates b. Oil Light Sweet Crude c. Gold V) LISTING TRACK 5 a. New Listings since 1 st July b. De listings since 1 st July c. Suspensions as on 30 th November ADB ( Asian Development Bank ) EMC ( Emerging Markets Committee ) ECDI ( Expert Committee on Demutualization and Integration ) IOSCO ( International Organization for Securities Commissions ) LSE ( Lahore Stock Exchange ) MOU ( Memorandum of Understanding ) SECP ( Securities and Exchange Commission of Pakistan ) SC 3 ( Standing Committee 3 ) WG ( Working Group ) Disclaimer: the entire contents of this newsletter are meant to serve the purpose of a general update and not in any way or form for investment advice or discussion; decisions of any kind taken will not be the responsibility of the Lahore Stock Exchange. Opinions presented here do not necessarily reflect the view of the LSE. 1/5

2 I) LSE OVERVIEW - On 24 th November 2004, the LSE launched the much awaited Faisalabad trading floor; 32 Members of LSE took office at Faisalabad. The Chairman of the Senate and the Commissioner (SM) of the SECP were kind enough to have joined the LSE at the Faisalabad trading floor inauguration. The branching of an exchange is a new concept in Pakistan whereby the LSE s services are brought right up to the investors in their vicinity. Branching into cities not only enhances investor convenience but also increases market size, as more geographical area and investors are facilitated. Following the successful launching of the LSE Faisalabad trading floor, Sialkot is the next stop for LSE. - The futures counter exhibited the following traded activity in November 2004: SYMBOL TRADES VOLUME VALUE in Rs. BOP-NOV 1 1,000 58,400 PPL-NOV ,000 23,216,450 PSO-NOV 2 20,000 5,327,000 - No LSE Board Meetings were held in November The relevant departments are thanked for their cooperation regarding the department specific details and the compilation thereof. II) REGULATORY DEVELOPMENTS Domestic 2 nd November 2004 the SECP announced that 202 companies registered with the SECP under the Companies Ordinance 1984 in October. In October 2003, 162 companies had registered with the SECP. New registrations were dominated by the Services sector, followed by the Trading and Communication sectors. As on 31 st October 2004, 44,618 companies were at work. 1 st November 2004 IOSCO s Emerging Markets Committee ( EMC ) Advisory Board approved the report Cross border Activities of Securities Firms in Emerging Markets. The Chairman of the SECP, who is the Chairman of the Working Group ( WG ) 3 and ex officio member of the Standing Committee 3, presented the report. This report addresses jurisdictions, regulatory practices and conclusions / recommendations in cross border activities. 2/5

3 International April 2005 the IOSCO meeting is scheduled to be held in Colombo, Sri Lanka. 24 th November 2004 The Committee on Payment and Settlement Systems ( CPSS ) and the Technical Committee of IOSCO released the report Recommendations for Central Counterparties. The report sets out comprehensive standards for risk management of a central counterparty the counterparty interposes itself between the buyer and seller in a transaction. This reduces risk and improves financial stability. 1 st November 2004 IOSCO s Emerging Markets Committee ( EMC ) Advisory Board approved the report Cross border Activities of Securities Firms in Emerging Markets. For details please refer to the Domestic developments above. III) MARKET OVERVIEW For the month of November, the LSE 25 gained points. Turnover for the month was million ready shares and the traded value for the same period was Rs billion. Capitalization increased by approximately Rs billion to touch Rs trillion by the months end. Volatility for the month when compared with a corresponding preceding period, was lower the statistical measurements and details are given below. 250,000,000 LSE 25 uptil 30 Nov 2004 Turnover Index Level 3, ,000,000 3, ,000,000 2, ,000,000 50,000, Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct-04 Turnover 20-Nov-04 Index 2,000 1,500 1,000 LSE - Chart 1 3/5

4 November MARKET PROFILE I 1 st Nov th Nov 2004 % LSE % Capitalization Rs t Rs t Rs b 4.52% November MARKET PROFILE II 5 Day Index Change Day Index Change Day Volume m 5 Day Daily Average Vol m 22 Day Volume b 22 Day Daily Volume Average Vol m 5 Day Traded Value Rs b 5 Day Daily Traded Average Value Rs b 22 Day Traded Value Rs b 22 Day Daily Traded Average Value Rs b Note: t = trillion, b = billion, m = million VOLATILITY Standard Deviation * COV ** Recent 22 Day period Preceding 22 Day period * Population Standard Deviation of inter day LSE 25 movement ** Coefficient of Variation IV) VALUE COMPARISON 1 st Nov th Nov th Nov 04 Interest Rates Domestic 6 Month T Bill 3.24% 3.84% 3.84% 12 Month T Bill 3.86% 3.86% 4.49% 10 Year PIB 7.36% 7.36% 7.36% Oil # Light Sweet Crude US$ US$ US$ Precious Metals ## Gold Rs. 6,328 Rs. 6,438 Rs. 6,596 # & ## Values are based on the December 2004 contracts traded on the New York Mercantile Exchange and the National Commodities and Derivatives Exchange of India, respectively 4/5

5 V) LISTING TRACK NEW LISTINGS SINCE 1 ST JULY 2004: Date of S. No. Name of Company Listing 1 Bank Al Falah Ltd 06/07/ Pakistan Petroleum Ltd 16/09/ Pakistan Strategic Allocation Fund 04/10/2004 DE-LISTING OF COMPANIES - SINCE 1 ST JULY 2004 Date of S. No. Name of Company Reason of De-listing Listing Amalgamation into Dawood 1 Burewala Textile Mills Ltd. Lawrencepur Ltd.01/07/2004 1/7/2004 Lawrencepur Textile Mills Amalgamation into Dawood 2 Ltd. Lawrencepur Ltd.01/07/2004 1/7/2004 Buy-Back of shares by 3 Polypropylene Products Ltd. sponsors 02/08/ Hamza Sugar Mills Ltd. Buy-Back of shares by sponsors 06/09/ nd TFC Paramount Leasing Full Redemption after Call 5 Ltd. Option 09/09/ Ghandhara Nissan Diesel Ltd. Merged with Ghandara Nissan Ltd. 09/10/2004 Amalgamation with Crescent 7 Trust Commercial Bank Ltd. Commercial Bank Ltd. 18/10/2004 COMPANIES UNDER SUSPENSION AS ON 30 th NOVEMBER 2004: 1 First Schon Modaraba 12 Turbo Tec Ltd. 2 First Tawakkal Modaraba 13 Kohinoor Looms Ltd. 3 Tawakkal Ltd. 14 Mian Mohammad Sugar Mills Ltd. 4 Tawakkal Garments Industries Ltd. 15 Standard Insurance Company Ltd. 5 Tawakkal Polyester Industries Ltd. 16 Mohib Exports Ltd. 6 Beema Pakistan Ltd. 17 Muslim Ghee Mills Ltd. 7 Karim Cotton 18 Harnai Woollen Mills Ltd. 8 Tri-Star Shipping Lines 19 Bela Engineers Ltd. 9 Dadabhoy Leasing 20 ITTI Textiles Ltd. 10 Tobacco International 21 Unicap Modaraba 11 Kohinoor Edible Oils Ltd. 5/5