2600 points before the last day of this year? Looking
at the predictions one tends to believe that the index may cross 2600
level very conveniently. The scrips that may contribute to this will be
HUBCO, PTCL, FFC, Engro, MCB, and NBP.
The GoP attitude towards regulatory authorities has
become a cause of concern. In the recent past the cabinet decision to
lower electricity tariff circumvent NEPRA autonomy. Now the Ministry of
Oil & Gas opposes any significant role for OGRA. It is necessary to
reiterate that autonomy of various regulatory authorities is essential
if the GoP wishes to move ahead with privatization programme.
PAKISTAN STATE OIL COMPANY
Analysts strongly believe that PSO's future price
performance is now linked directly to the international oil price
movements. Any adverse movement in international oil prices can
eliminate the cushion of raised distribution margins going forward. The
production cuts and stricter quota compliance by OPEC and the potential
of the US attack on Iraq brighten the chances of improvement in bottom
line of the company. On account of recent increase in POL prices, the
company is expected to record over Rs 77 million inventory gains. The
last two reductions had also caused inventory loss to the company.
FAUJI FERTILIZER COMPANY
The scrip is more likely to out-perform the market in
the medium-term in the declining interest rate scenario. The investors
are looking towards stocks with stable dividend payout. The scrip has
always been a favourite on dividend yield perspective. Even at current
prices the scrip offers attractive dividend yield. After the acquisition
of PSFL, investors value the scrip as growth stock. Analysts the bottom
line should grow in double digit during the next couple of years.
IBRAHIM FIBRES
The company announced its financial results for the
year ending September 30, 2002, posting Rs 532 million profit after tax.
Although sales declines, the driving factor behind improvement in the
bottom line has been significant decline in tax liability for the year
2002. Tax liability declined by 85%, attributable to the deferred tax
provisioning that the company had made in year 2001 - amounting to Rs
350 million. The decline in sales has mainly come on account of
comparatively lower sales prices, volume has certainly increased as
compared to previous year. As anticipated the company announced a 15%
dividend. With the commissioning of the expansion project, cash
plough-back requirement in the business has reduced considerably.
NATIONAL FOODS
The first quarter of year 2003 has been a promising
period for the company. Revenue growth has been laudable at nearly 16%.
This coupled with improved profitability resulted in a growth of 17.7%
of profit after tax. While the domestic sales increased, there was a
decline in exports during the quarter. The restructuring efforts
initiated by the company of the selling and distribution infrastructure
also contributed towards higher domestic sales. The decline in export
sales is due to lower prices of chilli following a better than expected
crop. The cost of raw material increased by 35%, depreciation expenses
by 21% and salary expenses by 29% as compared to the corresponding
period of last year.
NISHAT MILLS
According to a report by IP Securities, the company
has been facing a ruffling time for the last couple of years. During the
year 2001, the company from high raw material and fuel prices that
resulted in a 55% decline in profit after tax. The 9/11 incident marked
its adverse effect in year 2002 in the form of reduced sales price for
the company's products. The rupee appreciation against dollar during the
current year was also a downslide effect on the value of export sales
that comprised nearly 87% of the total sales in year 2001. During the
first nine months of year 2002, the company posted Rs 101 million profit
after tax that was 60% lower than the profit posted for the
corresponding period of last year. The resurgence in the foreign textile
markets and good cotton crop this year would act as a flicker of new
life for the company.
CHERAT CEMENT
According to a report by AKD Securities, Cherat
Cement's noticeably improved performance for the year 2002 has been
followed by a seemingly disappointing first quarter of year 2003.
However, analysis for the results for the quarter reveals some positive
long-term trends. Though first quarter results show no real improvement
in core profitability, it seems to be due to enhanced depreciation
charges of the machinery for coal firing system. The gross margin is
expected to improve due to lower fuel cost. At the back of positive
outlook for the economy the demand for cement is expected to improve
leading to higher revenue.
|
MOVEMENT
AT A GLANCE |
|
SCRIP |
HIGH
(Rs.) |
LOW
(Rs.) |
CLOSING
PRICE |
TURNOVER
(SHARE) |
|
Hub Power |
33.40 |
32 00 |
33.00 |
755,689,500 |
|
P.T.C.L.A |
25.90 |
23.65 |
23.65 |
204,687,000 |
|
Sui North Gas |
22.45 |
20.80 |
22.25 |
168,694,000 |
|
National Bank |
28.00 |
27.60 |
27.60 |
76,703,000 |
|
Adamjee Ins |
64.90 |
60.50 |
60.50 |
24,996,500 |
|
Dewan Salman |
16.05 |
15.50 |
15.50 |
23,369,000 |
|
M.C.B. |
33.95 |
33.30 |
33.30 |
20,680,500 |
|
Sui South Gas |
17.75 |
16.95 |
17.50 |
7,365,000 |
|
Ibrahim Fib. |
19.15 |
18.80 |
19.00 |
2,119,000 |
|
Union Bank |
9.95 |
9.95 |
9.95 |
405,500 |
|
