STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated May 17, 2003

 

And finally the KSE-100 index crossed psychological barrier of 3,000 and closed at 3,003.35 on last trading day of the week. However, analysts predict contrary outlook. While most of the punters believe that the market may experience another bull run, others hint loss of 200 to 300 points within the next week. They, the second group, believe that market has already discounted all the positive points. Still, they believe that the factors having the potential to drive the market are forthcoming budget and the understanding with the lenders.

 

 

 

JAVEDAN CEMENT

The company has posted Rs 18.167 million loss after tax for January-March quarter of year 2003. However, a closer look at nine months operations did not show such a grim situation because loss after tax for the period amounted to Rs 12.438 million. Sales for the nine months amounted to Rs 352.663. Cost of sales amounting to Rs 354.750 million resulted in gross loss of slightly more than Rs 2 million. However, the most alarming point is that the company keep on accumulating losses, now touching Rs 481.8 million. It is a state-owned enterprise and has not been able to overcome its problems. Therefore, the appropriate solution is to privatize it without further delay.

ATTOCK CEMENT PAKISTAN

The company has posted Rs 107 million profit after tax for January-March quarter of year 2003 as against a profit of Rs 37 million for the corresponding period of last year. The factors responsible for this improvement were increase in sales and better cost controls. Sales went up from Rs 954 million to Rs 1,080 million. Gross profit improved from Rs 146.7 million to Rs 196 million. The other factors responsible for improving the bottom line were reduction in financial charges and provision for tax. Financial charges came down Rs 15 million to Rs 6 million. Provision for tax declined from Rs 68 million to Rs 43 million.

KARACHI ELECTRIC SUPPLY CORPORATION

The problem ridden utility managed to bring down its loss before tax for the nine months period of current financial year. The factors contributing to this reduction were increase in revenue and decline in financial charges. However, the benefit was largely eroded due to increase in expenditure, going up from Rs 26,070 million to Rs 30,318 million. Cost of fuel and oil consumed went up from Rs 13,338 million to Rs 15,689 million. Similarly, cost of electricity purchased went up from Rs 8,821 million to Rs 10,680 million. It is necessary to point out that bulk of KESC's power generation capacity is based on fuel oil. Unless its entire power generation is switched over to gas, margins of the company cannot be improved. The GoP has implemented various financial packages to bring down financial cost that have started yielding positive results. However, unless fuel charges are brought down, it would continue to incur huge losses.

DAWOOD HERCULES CHEMICAL

The company has posted Rs 54.457 million profit after tax for the first quarter of 2003 as compared to a profit of Rs 104.294 million for the corresponding period of previous year. This decline is mainly attributed to a massive reduction in other income, going down from Rs 112 million to Rs 23.6 million. Sales went up from Rs 336.95 million to Rs 392.5 million. Gross profit improved from Rs 39.7 million to Rs 89.7 million. Despite reduction in profit after tax the Board of Directors approved distribution of 40% dividend among the shareholders.

 

 

GENERAL TYRE & RUBBER COMPANY

The company has posted Rs 72.576 profit before tax million for the quarter ending March 31, 2003 as compared to a profit of Rs 40.138 million for the corresponding period of last year. As a result profit for nine months period went up from Rs 147.849 million to Rs 220.419 million. The improvement in profit was mainly due to increase in sales and decrease in financial charges. Sales went up from Rs 1,223.9 million to Rs 1,478.7 million. Financial charges came down from Rs 20.6 million to Rs 8.9 million. The benefit was partly eroded due to increase in operating expenses, going up from Rs 111 million to Rs 127 million. There was also a marginal decline in other income. Despite profit after tax going up from Rs 85 million to Rs 141 million, the Board of Directors did not declare any interim dividend.

DAWOOD COTTON MILLS

The company has posted Rs 2 million operating profit for the second quarter of current financial year as against a loss of Rs 6.6 million for the corresponding period of previous year. The Board of Directors also approved issue of 50% Bonus Shares and reserved Rs 74.236 million for this purpose. An important observation is that profit for the nine months period amounted to Rs 23.837 million as compared to a profit of Rs 31.743 million. This increase can be attributed to higher sales. Gross profit went up from Rs 2.749 million to Rs 19.098 million. Another factor contributing to improvement in profit was the write back of a sum of Rs 10 million during the period under review leading to Rs 33.673 million profit before tax. However, other income came down from Rs 43.3 million to 20.5 million. EPS went up from Rs 1.96 to Rs 2.05.

MOVEMENT AT A GLANCE

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HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

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 (SHARE)

P.T.C.L.A

25.85

25.25

25.85

107,708,000

Hub Power

34.80

34.65

34.80

73,234,500

D.G.K.Cement

16.85

16.55

16.85

38,644,000

Lucky Cement

13.65

13.40

13.40

16,899,500

Pak.PTA Ltd.

8.90

8.75

8.90

7,698,500

FFC JORDAN

11.45

11.30

11.35

6,938,000

M.C.B.

34.05

33.50

33.70

4,133,500

Engro Chem

79.45

77.85

79.45

2,995,200

Fauji Fert

82.90

82.10

82.90

2,845,900

I.C.I. XD

49.65

48.70

49.65

2,767,500