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By SHABBIR H. KAZMI
Updated Aug  07, 2000

The market remained devoid of news which could trigger the buying spell. The announcements which came in during the week were already evident in the trading pattern which remained profit taking. One may expect some buying interest in the shares of selected textile companies after the announcement of much awaited Textile Policy. Some analysts forecast for a massive selling by some institutional investors in the coming weeks.

FAYSAL BANK

The Bank has posted a profit before tax of about Rs 219 million for the first six months of the year 2000. It had posted a profit of Rs 153 million during the first half of the previous year. While there was increase in income the profit increase for the year 2000 was mainly due reduction in operating expenses. There was reduction in administrative expenses and provisions against non-performing financing, the provisions for diminution in the value of investment were around the same amount. Another point to note is that profit of the Bank from trading of investment reduced to about one fourth as compared to the previous year. However, the accumulated losses will not allow the Bank to declare any dividend to its shareholders for couple of years, at least.

AL-FAYSAL INVESTMENT BANK

Contrary to the expectations of shareholders and equities analysts, the Bank did not declare any interim dividend for the first half of the year 2000. It had declared 7.5 per cent interim dividend at the time of announcement of half yearly results last year. The Bank has posted an income of Rs 1.724 billion for the year 2000 as against an income of Rs 1.6 billion for the previous year. This increase was due to higher profit on Modaraba financing and gains on sale of investment. There was three fold increase in capital gains — from Rs 43 million to Rs 149 million. However, the Bank made a provision against doubtful Modaraba financing amounting to Rs 21.5 million for the year 2000 whereas no such provision was made during the corresponding period of the pervious year. The administrative and operating expenses also registered a slight increase.

GLAXO WELLCOME

The Board of Directors of the Company has approved payment of 25 per cent interim dividend based on the half yearly results. An interim dividend of 20 per cent was paid for the six months of the year 1999. While there was an increase in sales — from Rs 1.5 billion to Rs 1.7 billion — there was a marginal increase in cost of goods sold. However, exports of the Company came down from Rs 22.45 million to Rs 19.76 million. The gross profit increased from Rs 529 million to Rs 636 million during the period under review. The Company has posted a profit before tax of Rs 389 million for the period ending June 30, 2000 as against a profit of Rs 291 million for the first six months of the previous year. There was a remarkable reduction in financial cost — from about Rs 8 million to less than a million rupee. While the paid up capital of the Company is Rs 385 million shareholders equity is over Rs 2 billion.

ICI PAKISTAN

The Company has posted an operating profit of Rs 408 million for the first half of the year 2000 as compared to an operating loss of Rs 966 million for the corresponding period of last year. This improvement has come mainly due to better performance of the PTA business where the operating losses came down from Rs 492 million to Rs 318 million. Other divisions also showed improved profit and the growth was mainly driven from PSF business. The Company also registered 10 per cent reduction in financial charges due to reduction in short term borrowings which came down from 3,181 million to Rs 30 million during this period. The Company had received financing of US$ 68 million along with an injection of US$ 891 million equity from the parent company in 1999. The financial charges are expected to reduce further as the Company is actively negotiating its long-term debts. The impact of debt reprofiling will be visible in the full year results for the year 2000.

ASKARI COMMERCIAL BANK

The Bank has announced its half yearly results. It has registered improvement in net interest income, seems to be driven by change in composition of asset portfolio. The results reveal the impact of declining interest rates. Reduction in cost of deposits and borrowings was more pronounced. Thus neutralizing the impact of reduction in interest rates to a large extent.

However, administrative expenses have increased by 14 per cent and provisions against non-performing advances amounted over Rs 52 million. The Bank now follows a policy of concentrating on lending activity and reducing investment in government securities. As on December 31, 1999 its portfolio on advances and investment comprised 60 per cent advances and 40 per investment. This is a marked shift from previous strategy as advances comprised 40 per cent of total advances and investment on June 30, 1999.

 

MOVEMENT AT A GLANCE

SCRIP

HIGH

LOW

TURNOVER (SHARE MN)

CLOSING PRICE

Faysal Bank

9.20

8.75

118,000

8.75

Al-Faysal Investment Bank

12.50

11.50

437,000

11.50

Glaxo Wellcome

89.40

81.00

304,100

89.40

ICI Pakistan

14.60

14.10

70,029,500

14.10

PTCL

26.95

26.30

84,192,500

26.35

Hubco

18.15

17.00

177,717,000

18.10

Askari Comm Bank

13.75

13.60

867,000

13.00