STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Oct 05, 2002

 

The KSE-100 index managed to close at 2028 level. However, it was not without ups and downs. The tussle between bulls and bears continued with profit taking. The much awaited PTCL financial results lacked any surprise. As the elections are scheduled on October 10, the next week may not witness any wild movement. The two Oil marketing companies and NBP are expected to give future direction to the market.

 

SUI SOUTHERN GAS COMPANY

The company has posted Rs 2.154 billion profit before tax for the year ending June 30, 2002 as compared to a profit of Rs 1.974 billion for the corresponding period of last year. The story started with the increase in sales and reduction in financial charges also contributed to higher profit. Earning per share improved from Rs 1.93 for the previous year to Rs 2.14 for the year under review. This enabled the company to announce 17.5 per cent dividend for the year 2002 as against a payout of 15 per cent for the previous year. Gross sales increased from Rs 29,237 million to Rs 37,061 million. This also increased SSGC's contribution towards gas development surcharges from Rs 1,112.9 million to Rs 3,719.4 million. There was also an increase in gas transmission and distribution cost that went up from Rs 2,552.3 million to Rs 2,712.8 million. Operating profit improved from Rs 2,040.4 million to Rs 2,285.6 million. Financial charges came down from around Rs 1,214 million to Rs 762 million.

PAKISTAN TELECOMMUNICATION COMPANY

The company has announced profit which is close to the market forecast. The utility has posted Rs 19.8 billion profit after tax for the year ending June 30, 2002 and also announced 27.5 per cent dividend. The company had posted Rs 18.15 billion for the previous year. The factors which have contributed to higher profit are: increase in sales and decrease in financial charges. However, there was a reduction in other income. Sales increased from Rs 62,040 million to Rs 66,426 million. Financial charges came down from Rs 3,161 million to Rs 2,433 million. Other income declined from Rs 1,544 million to Rs 1,396 million. There was an improvement in earnings per share that went up from Rs 3.56 for the previous year to Rs 3.88 for the period under review.

D. G. KHAN CEMENT COMPANY

It seems that the bad days of the company are over and shareholders can expect dividend from the year 2003 onwards. The company has succeeded in completely wiping out accumulated losses. The company has posted Rs 294 million profit before tax for the year ending June 30, 2002 as against a loss of Rs 431 million for the previous year. Sales increased from Rs 2,552 million to Rs 2,719 million. Whereas, cost of goods sold came down from Rs 2,527 million to Rs 1,948 million. This resulted in improvement of gross profit from Rs 25 million for the previous year to Rs 771 million for the year under review. Operating expenses went up from Rs 58.6 million to Rs 63.2 million. There was also a reduction in financial and other charges, a decline from Rs 602.5 million to Rs 531 million. The company is expected to further reduce its financial charges due to issue of preference shares worth over Rs 396 million. The Board of Directors have also decided to issue 10 per cent bonus shares.

BESTWAY CEMENT

Despite a reduction in sales the company has posted higher gross profit for the year ending June 30, 2002 as compared to previous year. This improvement is attributed to better cost controls. The company has announced 7.5 per cent dividend as compared to a payout of 5 per cent for the previous year. Sales came down from Rs 2,077 million to Rs 1,738 million. Cost of goods declined from Rs 1,590 million to Rs 1,117 million. Gross profit improved from Rs 488.7 million to Rs 620.6 million. The management was also able to bring down operating expenses. Financial charges came down from Rs 364 million to Rs 245 million. Other expenses also declined from Rs 123 million to Rs 22 million.

MAPLE LEAF CEMENT FACTORY

The company has posted about Rs 171 million profit before tax for the year ending June 30, 2002 as against a loss of Rs 269 million for the previous year. It may look some improvement but unless its financial charges are reduced it will not be able to wipe out accumulated losses and pay any dividend to shareholders. Out of current year's profit of Rs 616 million, financial charges utilized Rs 436 million.

DEWAN FAROOQUE MOTORS

The company has announced financial results for the year ending June 30, 2002. It has posted Rs 11.9 million profit after tax for the year 2002 as against a loss of Rs 31 million for the previous year. This looks dismal when compared to the increase in gross profit that went up from Rs 185 million to Rs 373 million. This advantage was mostly eroded by the increase in operating expenses and financial and other charges. Operating expenses went up from Rs 89.8 million to Rs 123.6 million. Financial charges grew from Rs 108.8 million to Rs 213.6 million.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

P.S.O.

198.50

190.80

196.25

130,080,100

P.T.C.L.A

20.15

20.00

20.15

125,089,500

Hub Power

27.15

23.80

24.05

115,270,000

Engro Chem

63.35

62.30

63.35

28.932,200

M.C.B.

27.40

27.25

27.30

26,957,500

Adamjee Ins

44.25

39.40

44.25

23,598,500

ICI

41.00

40.20

41.00

16,140,800

National Bank

23.00

22.55

22.55

9,467,000

Fauji Fert

51.85

51.00

51.85

7,937,600

Shell Pak

194.50

262.95

294.50

3,067,600