STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Oct 19, 2002

 

During the week equities market responded contrary to the expectations. It remained mostly bullish despite uncertain political scenario. The Indian decision to withdraw forces from the border, forced the market to overlook bomb blasts in Karachi on Wednesday. The KSE-100 index is expected to continue upward movement, but not without technical corrections and profit taking.

 

Open bidding for the sale of Lot-B of ICP mutual funds has been scheduled for October 24, 2002. Eight parties including Abamco, the successful bidder for Lot-A of ICP mutual funds, have been pre-qualified to take part in bidding. The other pre-qualified bidders include: Arif Habib Investment, PICIC, AKD Securities, Pak Kuwait Consortium, Westminster Financial Services and Khadim Ali Shah Bukhari & Company.

PLATINUM BANK

Khadim Ali Shah Bukhari & Company (KASB), has taken over the management of Platinum Bank upon acceptance of its acquisition plan by State Bank of Pakistan. The central bank had already approved the sale of bank to KASB. The previous sponsors failed to raise paid-up capital of the bank to the required level of one billion rupee Platinum Bank has 18 branches across the country. The bank was initially sponsored by Chakwal Group which sold it to the previous sponsors due to financial problems. Earlier, Pak Libya Holding Company was interested in acquiring Platinum Bank, but the deal was cancelled after the intervention of United States Department of Treasury.

KASB PREMIER FUND

Arif Habib Investment Management Limited, the Fund manager of the Pakistan Income Fund and the Pakistan Stock Market Fund has entered into an agreement with KASB to takeover its investment advisor role of KASB Premier Fund. This takeover is subject to the approval of SECP and shareholders of the Fund. The KASB Premier Fund was launched in 1995. It is a closed-end fund with net assets of around Rs 400 million. The net asset value of KASB Premier Fund is currently around Rs 10 per share.

NATIONAL BANK OF PAKISTAN

The second offering of 5 per cent shares of GoP in the bank has been oversubscribed by four times. The final figures indicate subscription for 72 million shares as against an offer of 18.652 million shares. This offer was made to the general public at a price of Rs 21 per share. The break-up value of the bank's share as at June 30, 2002 was Rs 33.62 excluding surplus on revaluation of fixed assets.

PICIC

Pakistan Industrial Credit and Investment Corporation (PICIC) has posted operating profit of Rs 381 million for the year ending June 30, 2002, as against a profit of Rs 529 million for the previous year. However, it has declared Rs 451 million profit after tax for the year 2002 as compared to a profit of Rs 358 million for the previous year. This may seem a little strange but the situation becomes clear after a little probe. Two factors can be attributed to this: reversal of provisions and reduction in tax liability. PICIC had made a provision of Rs 60.46 million during the year 2001 but made a reversal of Rs 71.17 for the year 2002. The tax liability was as high as Rs 87.9 million for the previous year that reduced to Rs 1.36 million for the year under review.

PAK SUZUKI MOTOR COMPANY

The company seems to be on the road to recovery, as compared to its performance during the previous year. It has managed to improve sales and control cost of goods sold. It is evident from the financial results for the nine months of year 2002. Sales went up from Rs 6,620 million to Rs 8,152 million. Whereas, cost of goods sold hiked from Rs 6,187 million to Rs 7,124 million. The other factors contributing to higher profit were a small increase in selling and administrative expenses and nearly three times increase in other income. Selling and administrative expenses went up from Rs 154 million to Rs 168 million. Other income hiked from Rs 48 million to Rs 170 million. All these factors contributed towards increase in profit before tax that grew from Rs 295 million to about Rs 950 million. However, the Board did not announce any interim dividend.

SAUDI PAK LEASING COMPANY

The company has released its financial results for the year ending June 30, 2002. It has posted Rs 17.44 million profit before tax for the year 2002 as compared to a profit of Rs 39.36 million for the previous year. The Board of Directors did not approve any dividend for the year 2002, whereas the company had distributed 12.5 per cent dividend to the shareholders for the year 2001. The company managed to improve its revenue, though marginally, the advantage was completely eroded due to increase in expenses. Revenue increased from Rs 385.4 million to Rs 390.5 million. Expenses went up from Rs 356.5 million to Rs 372.9 million. The company registered massive erosion of earnings per share that came down from Rs 1.56 for the year 2001 to Rs 0.62 for the year under review.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

Hub Power

24.80

24.00

24.80

171,435,500

P.T.C.L.A

20.10

19.70

20.10

65,064,500

National Bank

24.00

21.90

24.00

51,768,000

M.C.B.

29.20

27.75

29.20

48,804,000

P.S.O.

206.00

188.00

206.00

26,474,600

B.O Punjab

14.05

13.10

14.00

9,216,000

Dewan Salman

14.75

14.25

14.75

4,932,500

Shell Pak

339.00

306.45

339.00

4,257,700

Ibrahim Fib

18.40

17.70

18.04

2,338,500

Union Bank

7.30

6.70

7.30

553,000