STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Aug 31, 2002

 

According to a recently released report of Asian Development Bank, "Pakistan Economic Update" the sound microeconomic fundamentals accomplished over the 2-3 years will help achieve the GDP growth target of 4.5 per cent during financial year 2002-2003. The medium-term prospects for the country have improved due to reprofiling of foreign debt, improvement of relations with the G-7 countries, greater access to the European Union markets and

 

modernization of textile industry underway for the last couple of years. This report is expected to improve Pakistan's image and have positive impact on equities market. The Board of Directors of the Karachi Stock Exchange in one of its recent meetings reviewed and approved recomposition of KSE-100 index. The revised index would be implemented from September 16, 2002. The recomposed index based on the prices of June 28, would capture the market capitalization to the extent of around 82.73 per cent of the total market capitalization.

PAKISTAN STATE OIL COMPANY

At the back of Rs 3,189 million profit for the year ending June 30, 2002, the company announced a 80 per cent dividend and 20 per cent bonus share. The total dividend payout comes to 130 per cent. This triggered a 7.5 per cent increase in price of its share and also proved instrumental in pushing up KSE-100 index on the date of announcement. There was a 6 per cent decline in sales, mainly due to reduction in volume. The improvement in gross margins comes from improvement in commission margins for the oil marketing companies. Almost no increase in operating expenses shows that management is not losing its focus on costs despite restructuring and rebranding campaigns. The increase in payout shows that management wants to share the windfall gains with shareholders.

ICI PAKISTAN

The company has posted Rs 255 million profit before tax for the first half of year 2002, as compared to a loss of Rs 106 million for the corresponding period of last year. This can be attributed a massive reduction in financial and other charges, from Rs 911 million to Rs 357 million. Otherwise there was a reduction in gross profit, despite an increase in sales. Sales increased from Rs 5,142 million to Rs 5,566 million. Gross profit declined from Rs 1,178 million to Rs 1,038 million. There was an increase in administrative and selling expenses and decrease in other income.

CLARIANT PAKISTAN

The company released its half yearly financial results and also announced Rs 2.50 per share dividend. Despite a difficult period there was 7 per cent increase in turnover. All business segments, except leather, achieved considerable increase in volume. However, most of the benefit was lost due to pressure on selling prices which had to be lowered to combat cut throat competition. Continued emphasis on improving company's liquidity, through reduction in working capital, helped in curtailing financial charges. The EPS improved from Rs 4.81 to Rs. 6.11 for the period under review.

PAKISTAN CABLES

The company released its financial results for the year ending June 30, 2002 and also announced 30 per cent dividend, improved its last year's payout of 20 per cent. Sales went up from Rs 763.7 million to Rs 799.9 million and gross profit improved from Rs 87 million to Rs 98 million. Financial and other charges came down from Rs 32.4 million to Rs 26.8 million. There was decline in other income. Out of Rs 11.66 million, a sum of slightly more than Rs 9.36 was kept aside for payment of dividend and Rs 2.5 million was transferred to general reserve.

AL-ABID SILK MILLS

Despite a massive increase in profit for the year ending June 30, 2002, the company preferred to maintain its dividend payout at Rs 5 per share. Profit after tax jumped from about Rs 81 million to Rs 132 million. Gross profit went up from Rs 412 million to Rs 564 million. Administrative expenses went up from Rs 190 million to about Rs 250 million. Financial charges bulged from Rs 114 million to Rs 161 million. The Board of Directors also decided to issue 25 per cent Right Shares at a premium of Rs 60 per share.

ADAMJEE INSURANCE COMPANY

The company has released its half yearly financial results. It gives figures about profit before tax only. During the first half of year 2002 the company has posted Rs 107 million profit before tax as against a loss of Rs 203 million for the corresponding period of last year. The Board of Directors also approved issue of 15 per cent Bonus Shares.

TRI-PACK FILMS

The company has posted Rs 110 million profit before tax for half year ending June 30, 2002 as compared to a profit of Rs 80 million for the corresponding period of last year. The profit would have been higher had the financial charges not hiked from Rs 9 million to Rs 32 million. Sales went up from Rs 405 million to Rs 597 million. Gross profit improved from Rs 119.5 million to Rs 184.3 million. EPS improved from Rs 2.66 for the first half of previous year to Rs 3.61 for the period under review.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

Hub Power

28.75

28.40

28.75

369,574,000

P.T.C.L.

20.15

19.00

20.15

251,765,500

P.S.O

202 80

177.00

202.65

154,163,200

National Bank

24.60

22.65

24.20

30,204,000

Sui North Gas

15.65

15.25

15.65

26,621,500

Adamjee Ins

44.00

39.10

44.00

16,817,500

M.C.B.

25.75

25.05

25.35

8,549,500

Sui South Gas

13.80

13.45

13.80

1,112,500

Shell Pak

254.70

233.00

254.70

449,200

Askari Bank

22.00

21.55

22.00

380,000