STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Sep 21, 2002

 

The week was more or less event less except large activity in PTCL, which was a pleasant surprise. If the market rumours regarding PTCL's expected dividend payout are true, then the idex may sustain the 2000 level. The market sentiments can still be dampened by wild movements in PSO.
After a delay of almost four days, the OCAC finally

 

announced the revision in POL prices. Although the international prices have increased by as much as 7% over the past fortnight, the hike in local POL prices has been kept low. The GoP has adjusted the petroleum development surcharge to minimize the price hike. This is likely to hit the revenue collection drive of the government which is facing a tough target of Rs 461 billion. A marginal positive impact is expected on the two listed oil marketing companies.

FAUJI FERTILIZER COMPANY

Privatization Commission has transferred remaining 10% shares (6 million) of Paksaudi Fertilizer to the Consortium led by Fauji Fertilizer Company at the rate of Rs 135.85 per share, the highest offer received for this transaction on March 9, 2002. This amounted to Rs 815.1 million. Fauji had already deposited Rs 7.3359 million for 90% shares of the company. Now the total proceeds from this transaction has come to Rs 8.15 billion. In line with the conditions of the bid document the remaining 10% shares were offered to those workers of Paksaudi who did not opt for the Golden Handshake but no response from the workers was received by the due date. As per condition of the bid document the successful bidder was bound to pick up the remaining shares at the offer price.

ORIX LEASING PAKISTAN

The company has released its financial results for the year ending June 30, 2002 and also announced 45% dividend. It was able to improve its payout as compared to a 20% dividend paid for the previous year. A point to be noted is that higher dividend was paid despite reduction in profit after tax, a decline from Rs 179 million for the year 2001 to Rs 151 million for the period under review. Revenue increased from Rs 1.347 billion to Rs 1.602 million. However, the advantage was largely eroded due to increase in expenses which went up from Rs 1.167 billion to Rs 1.451 billion. This increase was due to hike in finance and bank charges; selling, general and administrative expenses and direct cost of leases. There was also marginal increase in provisions against potential lease losses and investment loan losses.

ORIX INVESTMENT BANK PAKISTAN

The bank has posted about Rs 47 million profit after tax for the year ending June 30, 2002 as compared to a profit of Rs 28 million for the previous year. The company was also improved its dividend payout from 10% for the year 2001 to 15% for the period under review. The Board of Directors also approved issue of 50% Right Shares. Income increased from Rs 322 million to Rs 459 million. Expenditure went up from Rs 276 million to Rs 372 million. Provision against losses on term finances/credit facilities hiked from Rs 4.5 million to Rs 15 million. Despite increase in expenditures, earning per shares improved from Rs 1.41 for the previous year to Rs 2.35 for the year under review.

SHELL GAS LPG PAKISTAN

At the back of higher sales, the company was able to improve its gross profit for the year ending June 30, 2002 to Rs 58 million. However, this advantage was largely eroded due to increase in administrative, selling and general expenses, and financial and other charges. Other income was also lower as compared to the previous year. The results was massive reduction in profit after tax, a decline from Rs 19 million for the year 2001 to Rs 1.7 million for the period under review. Therefore, it is right to say that the company has used its retained earnings to maintain its dividend payout.

CHERAT CEMENT COMPANY

The company has released its financial results for the year ending June 30, 2002 and also announced 25% dividend. It was able to improve its payout as compared to a 20% dividend paid for the previous year. This can be attributed to enhanced profit after tax, from Rs 75 million for the year 2001 to about Rs 129 million for the year under review. The improved profit was due to a number of factors: higher sales, better margins, reduction in financial charges and reduction in tax liability. Financial charges came down from Rs 33.6 million to Rs 24.7 million. Provision for tax declined from Rs 48.8 million to Rs 38.6 million.

IDEAL ENERGY

The company has released its financial results for the year ending June 30, 2002 and also announced 20% dividend. There seems to be no reason for the improvement in payout, except that the Board of Directors chose to approve higher dividend. All the figures for the year 2002 were more or less at the level of previous year. The positive point about the company is that it has over Rs 55 million accumulated profit as at June 30, 2002.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

P.S.O.

192.30

188.00

189.50

106,953,700

P.T.C.L.A

20.10

19.45

19.95

87,494,000

Hub Power

27.50

27.10

27.50

38,982,500

M.C.B.

27.15

26.05

27.15

33,289,500

Engro Chem

62 40

60.20

62.40

32,882,200

National Bank

22.90

22.50

22.90

13,465,500

Fauji Fert

51.10

49.10

51.05

11,405,700

Adamjee Ins

44.50

43.25

44.50

1,186,000

Shell Pak

271.00

260.00

260.00

342,300

Union Bank

6.80

6.50

6.80

86,50