STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated April 12, 2003

 

With the war in Iraq seems to be reaching it expected end, the talk of the town is, who will be the next target? However, some analysts still believe that Pakistan may continue to enjoy support of international financial institutions in the medium-term. It also seems that the elected political government is following the broad economic policies of President General Pervez Musharraf and most of the economic indicators continue to show sustained improvement.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The KSE-100 index continues to move upward due to prevailing liquidity and keen interest of investors in high yielding equities. The institutional investors are investing heavily in the TFCs due to their attractive yield and security. The general perception is that the Privatization Commission will be able to offload part of the GoP holding in various state-owned enterprises through stock exchanges. It has two immediate advantages, retaining the management control and mobilizing funds. The entities that will be listed at stock exchanges and part of their shares sold are HBL, UBL, OGDC, ABL and PPL. The Commission also plans to offer more shares of entities like PTCL, NBP and SSGC. However, the key issue is at what prices shares of these entities will be offered.

ADAMJEE INSURANCE COMPANY

The much-awaited results of the company for the year ending December 31, 2002 have been received with mix feelings. The company has announced Rs 268 million profit for the year 2002 as against a loss of over half a billion for the previous year. The Board of Directors also approved issue of 15% Bonus Shares. The company had announced issue of 15% interim Bonus Shares at the time of release of half-yearly results. Therefore, the total issue of Bonus Shares comes to 30% for the year 2002. Some of the equities analysts are still busy in evaluating the financial results because of the qualification remarks of auditors. The general perception is if all the provisions suggested by the auditors are made the complexion of bottom line will be changed completely.

DAWOOD HERCULES CHEMICAL

The company has posted Rs 793 million profit after tax for the year ending December 31, 2002 as compared to a profit of Rs 595 million for the previous year. The EPS improved from Rs 12.38 for the year 2001 to Rs 16.51 for the year under review. This increase can be attributed to a significant reduction in cost of goods during year 2002 as compared to previous year. Sales came down marginally from Rs 2,851 million to Rs 2,810 million. Cost of goods sold plunged from Rs 2,105 million to Rs 1,800 million. It is a rather strange phenomenon because cost of other fertilizer manufacturing companies has been on a constant increase due to hike in feedstock price. The other factors contributing to improved bottom line were reduction in selling, administrative and financial expenses. While other income increased, other charges decreased. The Board of Directors approved a total dividend of Rs 9.50/share for the year 2002 and also issue of 50% Bonus Shares. The company had distributed Rs10.0/share dividend and issued 20% Bonus Shares for the year 2001.

SAUDI PAK COMMERCIAL BANK

The bank, under the new management, has achieved remarkable growth for the year ending December 31, 2002. It has posted Rs 202 million profit after tax for the year 2002 as against a loss of Rs 182 million for the previous year. This remarkable performance was due to the enormous improvement in its corporate image. Deposits increased by 156% to Rs 12,340 million and advances by 95% to Rs 9,753 million. Investments including lending to financial institutions also grew by 166% to Rs 7,410 million. The total asset base doubled, from Rs 9,513 million to Rs 19,617 million. Non-performing advances of Rs 640 million were regularized. The ratio of performing advances to total advances improved markedly from 29% in year 2001 to 69% for the year 2002. However, a real concern for the investors is that the bank still carry accumulated losses of over Rs 811 million.

 

 

KASB BANK

KASB Bank (formally Platinum Commercial Bank) has posted Rs 114 million loss after tax for the year ending December 31, 2002. The results pertains to the operations under the previous management as the new sponsors took over the bank from the previous sponsors in October 2002. The change in name was brought subsequent to the notification of the central bank dated February 21, 2002. It is expected that the combination of services which the bank will have access to will be unique. Once corporate reorganization is complete, the bank will have a majority stake in LASB Leasing and a 100% stake in Khadim Ali Shah Bukhari & Company (KASB). Hence, the client base at large will not only have access to commercial and consumer banking services, but to lease financing, equity and debt securities broking, investment banking and investment advice.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

Hub PowerXD

36.05

35.25

35.45

203,852,500

P.T.C.L.A

25.00

24.55

24.85

124,163,000

Pak PTA Ltd.

8.55

8.05

8.55

48,554,000

National Bank

28.30

27.00

28.30

43,906,500

Dewan Salman

14.65

14.15

14.65

14,833,600

Fauji Fert

84.40

82.90

83.55

14,091,600

M.C.B.

34.25

33.50

34.25

12,703,000

Engro ChemXDXB

81.80

81.00

81.10

9,603,800

Adamjee Ins

50.20

49.45

49.80

4,787,000

Ibrahim Fib.

20.65

20.00

20.00

1,624,500