STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Nov 16, 2002

 

The market witnessed surges during the week mainly due to two reasons: 1) political uncertainly and 2) profit taking. However, some analysts term this only a technical correction. The future direction of the market is largely dependent on complexion of new government. COT volume and rates are being adjusted after redefining of rules of the game.

 

NATIONAL BANK OF PAKISTAN

The results announced by the bank for the third quarter of year 2002 shows an exuberant growth of around Rs 517 million in its bottom-line. The bank posted Rs 534 million profit after tax for the quarter, as against Rs 17 million for the corresponding period of last year. For the nine-months of year 2002 earnings were recorded at Rs 1.6 billion, as against Rs 312 million for the corresponding period of last year. The earnings grew by a large fold despite the fact that net interest income during the quarter was lower by Rs 71 million on account of declining spreads of the banking sector. However, the non-interest income mitigated the effect of this decline by earning Rs 279 million more as compared to the third quarter of year 2001. The decline in deferred cost, referring to voluntary separation and handshake schemes, contributed a hefty amount of Rs 575 million to the positive figures of this quarter. Other factors bearing positive impact on the profitability during the quarter have been lesser provisions and the declining tax rate of the banking sector.

ICI PAKISTAN

Despite increase in sales, the company has posted lower operating profit for the quarter ending September 30, 2002 as compared to the profit for the corresponding period of last year. However, profit before tax improved mainly due to reduction in financial charges. The figures for the nine-months period indicate major recovery. Profit before tax for this period of year 2002 was as high as Rs 441 million as compared to that of Rs 59 million for the corresponding period of last year. The key factor attributable to this improvement was also reduction in financial charges, which came down from Rs 1,168.5 million to Rs 265.2 million. There was increase in sales, but the advantage was lost due to increase in administrative and selling expenses. Net sales went up from Rs 7,895 million to Rs 8,662 million. Administrative and selling expenses grew from Rs 792.5 million to Rs 886.4 million.

PAKISTAN PTA

The company seems to be on the path of recovery. Better control on cost of goods sold and reduction in financial charges seems to be the key reasons. During the nine-months period of year 2002 the company has posted operating loss of Rs 305.78 million as compared against a loss of Rs 1,489.67 million for the corresponding period of last year. The company was also able to bring down financial charges from Rs 2,369.3 million to Rs 1,828.8 million. Other income went up from Rs 1.452 million to Rs 125.9 million. However, the advantage was partly eroded due to increase in other charges, going up from Rs 0.94 million to Rs 40.298 million. A point of concern is that accumulated losses exceeded Rs 6,913 million as at September 30, 2002.

FFC-JORDAN FERTILIZER

As a result of injection of one billion rupee by the GoP the company managed to post a profit before tax of Rs 5424 million for the nine-months period of year 2002, as against a loss of Rs 1,732.68 million for the corresponding period of last year. The closure of DAP plant has also contributed to posting of Rs 357.97 million operating profit for the year 2002 as against an operating loss of Rs 396.68 million for the corresponding period of last year.

ATTOCK CEMENT COMPANY

The company has posted Rs 94.351 million profit for the quarter ending September 30, 2002 as compared to a profit of 61.467 million for the corresponding period of last year. The story started with increase in sales and reduction in financial charges. EPS also improved from Rs 1.02 for the year 2001 to Rs 2.74 for the year 2002.

FAUJI CEMENT COMPANY

The company has posted Rs 92.946 million loss for the year ending June 30, 2002 as compared to a loss of Rs 582.455 million for the last year. The sole factor seems to be reduction in financial charges, a decline from Rs 807.855 million to Rs 416.731 million. There was increase in gross profit but the advantage was mostly eroded due to increase in operating expenses which grew from Rs 69.525 million to Rs 83.777 million. It is more or less evident that shareholders will not benefit from investment in the company for many more years to come. Accumulated losses of the company were as high as more than two billion rupee as at June 30, 2002.

SEARLE PAKISTAN

The company has posted Rs 34.745 million profit before tax for the quarter ending September 30, 2002 as against a loss of Rs 11.186 million for the corresponding quarter of last year. This improvement was mainly due to increase in sales, going up from Rs 288.137 million to Rs 366.795 million.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

Hub Power

26.90

26.20

26.90

123,968,500

P.T.C.L.A

21.80

21.35

21.80

80,656,000

P.S.O.

196.00

192.70

192.70

78,973,300

National Bank

26.60

24.95

26.50

57,579,000

Sui North Gas

18.60

17.35

17.35

42,760,000

M.C B.

34.35

31.85

34.35

33,119,500

Adamiee Ins

46.60

45.50

46.50

6,790,500

Sui South Gas

14.25

13.60

14.25

2,067,000

Union Bank

9.00

8.00

9.00

1,041,000

Shell Pak

313.50

307.00

307.50

1,035,100