STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Nov 23, 2002

 

With the election of new Prime Minister the uncertainty spread over weeks has ended. Some of the cynics term Zaffarullah Khan Jamali's government very weak. They believe that MMA will not allow him to move contrary to its whims. He will have to bow down to MMA's pressure as regards to foreign policy. If he does, continuity of economic policies cannot be assured and further support from international donors will also be in doldrums.

 

However, the equities analysts term this only wishful thinking. They also believe that MMA has to soften its stance for the sake of prosperity of Pakistan. If it does not act prudently, it can only disrupt the process of economic revival. At a time when the policies of Musharraf government have started yielding results, any disruption can only be unjust for the masses.

Despite the prevailing uncertainties the KSE-100 index has continued its upward movement. All eyes are set at 2,600 level and beyond. The recent upgrading of Pakistan's sovereign rating and building up of foreign exchange reserves allow the foreign fund managers to revisit their strategy towards Pakistan.

PAKISTAN STATE OIL COMPANY

The Privatization Commission aims at resolving the issues having the potential to affect privatization of the company. The key issues are: 1) interest and other charges of Rs 11 billion payable to refineries, 2) receivables from KESC worth Rs 4.4 billion and 3) receivables from WAPDA worth Rs 4.2 billion. All these issues are to be discussed with the bidders at the forthcoming 'First Discussion Forum. This meeting is scheduled to be held shortly after the new government is formed. However, some analysts believe that political situation may override economic issues and delay the entire privatization process.

TRUST INVESTMENT BANK

The bank has posted Rs 4.9 million loss before tax for the year ending June 30, 2002 as compared to a pre-tax profit of Rs 35.6 million for the previous year. Though the bank managed to curtail its expenditure, the reduction in revenue proved fatal. Expenditures came down from Rs 623 million to Rs 606 million. Revenue plunged from Rs 747 million to Rs 621 million. Income from lease financing came down from Rs 535.7 million to Rs 472.8 million. The blow was further aggravated by the massive fall in return on short-term placements, loans and advances taking a nose dive from Rs 167.5 million to Rs 92.4 million. Some respite was provided due to lower provisioning. Provision against doubtful receivables came down from Rs 75.8 million to Rs 35.6 million and added advantage was ensured by reversal of provision against diminution value of investment, amounting to Rs 15.7 million.

SIEMENS PAKISTAN

The company is a typical exhibit of the concept of keeping the paid-up low and paying high dividend. It maintained last year's payout of 130 per cent for the year ending September 30, 2002. The percentage may look fabulous but the amount in terms of rupees is as low as Rs 101.7 million, that too out of a Rs 390.9 million profit after tax. Sales for the year 2002 amounting to Rs 4,836.6 million higher from that of Rs 4,460.5 million for the previous year. This yielded a gross profit amounting to about one billion rupee. Interestingly financial and other charges grew by about ten fold, from Rs 9.74 million to Rs 87.18 million.

ALTERN ENERGY

Though not specifically pronounced in the announcement, the year ending June 30, 2002 seems to be the full year of operations. This could be gathered from increase in sales at Rs 137 million as compared to that of Rs 11 million for the previous year. The revenue was sufficient to absorb all the expenses and company posted a loss of nearly Rs 27 million for the year. Out of total sales of Rs 137 million, a sum of Rs 131.7 million consisted of cost of goods sold. This yielded a gross profit of Rs 5.368 million. As against this operating expenses amounted to Rs 13.3 million and financial and other charges amounted to Rs 19.7 million.

ELLAHI ELECTRIC COMPANY

The company experienced a reversal of fortune for July-September period of year 2002. It posted an EPS of negative Rs 0.25 for the period as against an EPS of positive Rs 0.88 for the corresponding period of year 2001. The only reason which can be attributed for the reversal was dismal sales of Rs 88 million for this quarter of year 2002 as compared to that of Rs 349.7 million for the corresponding period of last year. Adding to the disgrace was massive fall in other income plunging from Rs 29 million to a meager sum of Rs 66,059 only. Therefore, the company posted a loss before tax of Rs 8.2 million for the quarter as against a profit of Rs 33.5 million for the corresponding period of last year. The company is in the process of merger and the accounts will be treated final for the year 2001-2002.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

Hub Power

29.05

27.65

28.60

317,683,500

P.T.C.L.A

23.00

22.30

22.65

205,727,500

Sui North Gas

19.20

18.05

18.75

84,605,000

Fauji Fert

63.30

59.40

62.50

31,880,900

D.G.K.Cement

13.75

13.10

13.55

28,793,500

Engro Chemical

74.90

74.15

74.50

25,090,800

Adamjee Ins

48.60

46.75

48.60

13,983.509

Nishat Mills

19.20

17.95

17.95

8,547,000

Lucky Cement

10.75

9.95

10.75

8,063,000

Sui South Gas

15.15

14.40

15.00

3,341,500