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 1. FINEX WEEK
 2. STOCK WATCH
 3. STOCK MARKET AT A GLANCE

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STOCK WATCH

By SHABBIR H. KAZMI
Updated Mar 02, 2002

Despite number of trading days reduced to four, KSE -100 index gained 52 points at the back of 23 per cent rise in average daily trading volume. Some analysts forecast that buying euphoria, in selected scrips, will intensify in the following week. However, the market is expected to go through large scale correction once book closure of some scrips is over. Therefore, small investors must stay away from market for a while.

NATIONAL BANK OF PAKISTAN

The shares of National Bank made their official debut on the market on February 18, 2002. The scrip has been traded on the provisional counter since November 2001. The delay can be attributed to the logistical backlog in the issuance of shares to successful applicants. The total secondary market float is over 37 million, a hefty number when compared with market float of other commercial banks. Since the bank has been listed, market awaits the results for the year 2001. The bank posted a profit after tax of Rs 319 million for the first half of 2001, and expectations are that the full year profit may exceed Rs 460 million.

D. G. KHAN CEMENT

With the commencement of reconstruction activities in Afghanistan and the company making a break through in export of cement, the scrip witnessed tremendous buying interest. It was also supported by restructuring of its debt. The half yearly results for the period ending December 31, 2001 have provided new impetus. The company has posted Rs 17.94 million profit after tax as compared to Rs 228.76 million loss after tax for the corresponding period of previous year. Sales came down from Rs 1,394.8 million to Rs 1,282.9 million. Gross profit increased from Rs 76.8 million to Rs 289.7 million. Financial charges also came down from Rs 298 million to Rs 264.6 million. This does not reflect the benefit of recent debt restructuring by the IFC. Therefore, the combined impact of higher capacity utilization and lower financial charges is expected to further improve earning per share.

KOHAT CEMENT COMPANY

The company has posted Rs 122 million profit before tax for the half year ended December 31, 2001 as compared to Rs 78 million for the corresponding period of previous year. This can be attributed to optimization of cost of goods sold. Sales went up from Rs 459.4 million to Rs 468.6 million. As opposed to this cost of goods sold came down from Rs 356.9 million to Rs 319.9 million. This resulted in increase in gross profit from Rs 102.5 million to 148.7 million.

CHERAT CEMENT COMPANY

The company registered a decline in profit after tax for the six-months period ending December 31, 2001 compared to corresponding period of previous year. Net sales came down from Rs 705 million to Rs 656 million bringing down gross profit from Rs 112 million to Rs 108.5 million. Increase in general, administrative, selling and distribution expenses and decrease in other income further reduced the profit. The company is also expected to benefit from export of cement to Afghanistan and analysts forecast for better results for the full year.

PIONEER CEMENT

The company managed to cut its losses during July-December 2001 to one fourth of the quantum for the corresponding period of previous year. Though sales came down, more than proportionate reduction in cost of goods sold improved gross profit to Rs 81.7 million. Alongwith this increase in other income and decrease in financial and other charges reduced net loss. Net loss before tax came down from Rs 104.94 million to Rs 26.75 million. Profitability of the company is expected to improve further during the remaining six months of the year. However, the real point of concern is accumulated loss which amounted to Rs 720 million as at December 31, 2001.

CHERAT PAPERSACK

The company is involved in manufacturing of papersack for cement industry. It has posted Rs 1.66 million loss after tax for the half year ending December 31, 2001 as against a profit of Rs 2 million for the corresponding period of previous year. Despite the fact that operating profit increased from Rs 3.43 million to Rs 5.28 million the company ended up posting a loss. The sole reason for this seems to be manifold increase in financial charges, going up from Rs 1.84 million to Rs 7.66 million.

SAUDIPAK LEASING COMPANY

Earning per share - basic (annualized) for the six-months period ending December 31, 2001 reduced to Rs 0.68 compared to that of Rs 1.12 for the corresponding period of previous year. Though, revenue increased the hike in expenses reduced operating profit before provisions from Rs 16.8 million to Rs 12.8 million. Revenue increased from Rs 186.54 million to Rs 208.79 million. Expenses went up from Rs 169.78 million to Rs 195.99 million. The increase in provision for potential lease losses and for diminution in value of investment further reduced profit before tax a decline from Rs 14.83 million to Rs 8.96 million.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

HUBCO

30.10

28.90

29.50

316,334,000

PTC

20.10

18.40

19.55

282,549,000

PSO

151.90

135.75

146.25

68,005,400

SNGP

14.35

13.80

14.00

38,141,000

FFCL

52.05

50.70

49.75

31,857,800

ICI

50.45

47.60

46.50

20,255,500

ENGRO

78.50

76.90

74.00

18,174,100

MCBL

24.70

24.45

23.95

2,739,000

SSGC

12.70

12.20

12.40

1,164,000

SHEL

221.50

209.00

217.25

76,500