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A weekly review of fundamentals enjoyed by the blue chips

By SHABBIR H. KAZMI
Updated Oct 16, 2000

Equities market has not responded positively after the press briefing of the CE. Although, he has indicated commitment to hold elections before October 12, 2002, perhaps the market was looking forward for some concrete news on the economic front. The equities market is still moving within a narrow bandwidth. Lack of any positive news regarding HUBCO has kept its share price low. Although, the stock remains a volume leader, the price slide can trigger selling pressure. MCB continues to draw buyers attention as punters feel there is upside on the back of 24 per cent divestment of GoP holding in the Bank. The trading volume of PTCL has gone down considerably. Hectic buying in PTCL cannot be ruled out ahead of its financial results announcement.

The dollar euphoria has lowered due to speculative buying in Iraqi currency. However, money changers say that accumulation of Iraqi currency is a rather dangerous trend. The conditions in Middle East are still highly vulnerable and there seems to be no prospects for relaxation of economic sanctions imposed on Iraq.

AL-GHAZI TRACTORS

The Board of Directors of the company have recommended final 100 per cent dividend for the year ending June 30, 2000. This dividend is in addition to interim dividend of 50 per cent declared earlier making a total dividend of 150 per cent per share for the year. Profit before tax for the year 2000 was over one billion rupee as compared to that of Rs 544 million for the year 1999. Net sales for the year 2000 were Rs 6.137 billion as compared to that of Rs 4.233 billion for the previous year. Cost of goods sold was about five billion rupees for the year under review as compared to that of Rs 3.672 billion for the year 1999. While financial charges and other charges increased other income came down. The Board of Directors have also decided to change the Company's financial year end to December 31, instead of June. The decision has been taken to bring the accounting year end in line with the global accounting requirement of Al-Futtaim Industries and New Holland N.V. who own 93 per cent of equity of the Company. Necessary approval from Commissioner of Income Tax has been obtained.

PICIC

The Board of Directors of Pakistan Industrial Credit & Investment Corporation Limited (PICIC) have proposed cash dividend @ 10 per cent per share and the issue of 15 per cent of bonus shares. PICIC has registered a complete reversal by posting profit after tax of Rs 372 million for the year 2000 as compared to a loss before tax of Rs 237 million for the previous year. However, the most interesting feature was reduction in total income from Rs 2.526 billion for the year 1999 to Rs 1.482 billion for the year 2000. Total expenses did not come down by the same proportion and were Rs 1.171 billion for the year under review as compared to Rs 1.350 billion for the year 1999. Another important point was that charge for irrecoverable advances were only Rs 75 million for the year 2000 as compared to Rs 1,208 million for the previous year. After the appropriations only an amount of Rs 17.187 million was left to reduce the huge accumulated loss of Rs 1,377 million at the end of June 30, 1999 to Rs 1,360 million at the end of year under review.

JAVED OMER VOHRA & COMPANY

The total income of the Company for the year ending June 30, 2000 was Rs 135 million as compared to that of Rs 26 million for the pervious year. While the brokerage income increased from Rs 12.862 million to Rs 31.88 million, dividend income increased from Rs 8.272 million to Rs 28 million. However, the largest increase was in net capital gains on marketable securities which jumped from Rs 4.896 million to about Rs 74.8 million during this period. At the same time financial charges increased from Rs 3.9 million to Rs 6.8 million. Tax liability for the year 2000 came to Rs 5.4 million whereas it was only Rs 989,055 for the previous year. The Board of Directors had proposed 105 per cent dividend for the year 2000, whereas it had paid 52.5 per cent dividend for the year 1999. Despite announcing such a high dividend a profit of Rs 63.334 million was carried forward. Earning per share for the year 2000 came to Rs 25.45 as compared to that of Rs 6.60 for the previous year.

HABIB ARKADY

The Board of Directors of company has proposed 40 per cent dividend and issue of 20 per cent bonus shares for the year ending June 30, 2000. The Company had paid 15 per cent dividend for the previous year. Financial results of the Company indicates overall increase in local sales and exports. Gross profit for the year under review more than doubled from Rs 63.681 million for the previous year to Rs 174 million for the year 2000, resulting in an operating profit of Rs 77.419 million for the year 2000 as compared to an operating loss of Rs 4.5 million for the previous year. While there was increase in selling and administrative expenses, financial expenses came down.


MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

TURNOVER
 (SHARE MN)

CLOSING 
PRICE

Al-Ghazi Tractor

92.00

75.00

0.514

74.60

PICIC

17.25

17.00

1.640

17.00

JOV

60.20

57.00

0.091

57.25

Habib Arkady

12.15

11.50

0.781

11.50

PTCL

25.65

24.85

38.691

24.85

Hub Power

19.45

18.35

177.502

18.35
Source IP Securities