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A weekly review of fundamentals enjoyed by the blue chips

By SHABBIR H. KAZMI
Updated Dec 18, 2000

This week was a lackluster and the trend is expected to continue in the next week due to coming Eid holidays. A positive note was the lowering of cash reserve requirement against bank demand and time liabilities by the central bank. According to a KASB report the move will provide the market with additional liquidity of slightly above Rs 32 billion. However, some analysts believe that it will have only a marginal effect on the equities market.

With T+3 trading mechanism expected, badla volumes are likely to reduce substantially. While the new settlement system is good in the longer term for the market, the daily trading volume is likely to go down substantially. The market dynamics and the technical weakness should provide an incentive for long term investors as the prices are low and demand accumulation.

NATIONAL ASSET LEASING CORP.

The company has posted Rs 27 million loss after tax for the year ending June 30, 2000. It had also posted Rs 13.5 million for the year 1999. While the revenue for the year 2000 were higher than the previous year, the increase in expenditure reduced the profit before provision to around Rs 5 million as compared to that of Rs 11 million for the year 1999. The total provision of over Rs 26 million for the year 2000 resulted into a loss before tax of Rs 21.5 million. Total provision of over Rs 24 million for the year 1999 was also responsible for loss for the previous year.

TRUST MODARABA

The Modaraba has posted a profit of over Rs 22.87 million for the year ending June 30, 2000 as compared to a profit of Rs 29.85 million for the previous year. The Board also decided to distribute Rs 20.5 million among the certificate holders. Last year the Modaraba had distributed Rs 27.3 million among the certificate holders. The reason for lower profit can be attributed to lower income declining from Rs 75.5 million for the year 1999 to Rs 63.5 million for the year under review. There was a reduction in operating expenses which came down from Rs 49.6 million to Rs 33.9 million during this period. However, financial charges remained at the level of previous year and other income more than doubled. Yet another positive observation is no provision for diminution in value of investment.

FIRST CAPITAL MUTUAL FUND

The Fund has posted an operating profit of Rs 16.5 million for the year ending June 30, 2000. It had posted over Rs 39 million for the previous year. The Fund had registered around Rs 38 million capital loss for the year 1999. Despite posting a profit of over Rs 16 million the Fund has paid only 5 per cent interim dividend and abstained from paying final dividend. Earning per share for the year improved to Rs 1.07.

S. G. FIBRE

The Company has posted Rs 103 million gross profit for the year ending June 30, 2000 but could not avoid a loss before tax of Rs 61 million. Although, the management was able to curtail financial charges from Rs 75.8 million for the year previous year to Rs 60.6 million for the year under review. Profit and loss statement indicates some serious operational problems which need immediate attention of the management. By virtue of a loss after tax of Rs 66.5 million, accumulated loss exceeded Rs 69 million.

HASEEB WAQAS SUGAR MILLS

A profit after tax of Rs 36 million for the year ending September 30, 2000 has helped the Company to reduce its accumulated loss to Rs 41.7 million. It had posted Rs 96.6 million loss after tax for the previous year. The company was able to report Rs 202 million gross profit for the year 2000 due to higher sales. The efforts of the management to contain operating expenses to Rs 30.6 million and curtail financial charges to 126.8 million helped the Company to post over Rs 42 million profit before tax for the year 2000. It had posted Rs 62 million loss before tax for the year 1999.

ADIL POLYPROPYLENE PRODUCTS

The Company has posted a loss before tax of Rs 39 million for the year ending June 30, 2000. The amount would have been only Rs 17 million had it not to take into account an extra ordinary item of about Rs 22 million. Since the explanatory notes are not available it is difficult to explain the details. However, it is necessary to note that the Company had carried forward a loss of Rs 23 million from 1998, incurred a loss of over Rs 24 million for the year 1999 and a loss of Rs 39 million for the year 2000 has resulted in total accumulated loss of over Rs 85 million.

FIRST ISLAMIC MODARABA

The Modaraba has posted a profit before tax of Rs 7 million for the year ending June 30, 2000. It had posted Rs 7.4 million loss before tax for the previous year. Profit for the year 2000 has helped in reducing accumulated loss to Rs 1.3 million. There was a proposal to merge the Modaraba with Islamic Investment Bank. It would be interesting to watch how the marriage of convenience helps the two loss making entities.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE MN)

Hubco

19.45 16.60

18.20

364,984,000

PTCL

21.30

19.00 21.10

252,782,000

Engro

66.10

57.80

64.00

36,886,700

Adamjee

67.00

61.90

65.15

17,831,000

SSGC

13.35

12.50

12.50

434,500

Islamic Modaraba

1.30

1.30

1.30

1st Cap. Mutual Fund

2.50

2.50

2.50