STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated July 05, 2003

 

The KSE-100 index crossed 3,500 level during the week but finally closed at 3,478 points. While many punters had hinted towards technical correction, the week ended on a sad note due to killing of 44 people in an attack on a mosque in Quetta during Friday prayers. After the incident curfew has been imposed in the city to avoid any fallout. It is feared that this incident may keep the sentiments bearish for some time.

 

 

 

During the week the index continued its upward movement. Buying interest prevailed in volume leaders. PSO and Shell witnessed major activity due to increase in prices of petroleum products. With the announcement of Rs 1.75/unit dividend by NIT, large-scale buying of shares of selected commercial banks pushed their prices up. Profit taking was common in cement companies. Prices of second and third tier scrips also went up due to speculation. The hike in the prices of second and third tier scrips has become a source of concern. Analysts believe that in case of bearish spell the index may erode due to panic selling in these scrips.

MARI GAS COMPANY

The company mainly supplies gas to fertilizer manufacturing units located in the close proximity. These include Engro Chemical and Fauji Fertilizer Company. Another unit previously operating as Pak Saudi Fertilizer has been merged into Fauji. The increase in tariff for the feedstock as well as gas being used as fuel has helped the company in increasing its profit before tax by threefold, going up from Rs 235 million to Rs 827 million. However, provision of Rs 303.6 million against deferred tax reduced profit after tax for the period to Rs 374 million. During the first nine months of ongoing financial year net sales went up from Rs 947 million to Rs 1,564 million. It may be worth noting that the company has not disclosed cost of goods sold and preferred to disclose only net sales.

AL-GHAZI TRACTORS

The company has posted Rs 158 million profit after tax for Jan-March quarter of year 2003 as against a profit of Rs 89 million for the corresponding period of last year. This improvement in bottom line was mainly due to increase in turnover. Sales went up from Rs 724 million to Rs 1,058 million. Cost of sales went up from Rs 584 million to Rs 789 million. It may be of some interest that to achieve net sales of over one billion rupee the company incurred operating expenses amounting to Rs 25.5 million and financial charges were as low as Rs 2.3 million. This may be a unique feature for companies operating in Pakistan. It is expected that the company may succeed in improving in sales further because of improved income of farmers and extension of larger credit by commercial banks to the agriculture sector.

PACKAGES

The company has posted Rs 247.7 million profit after tax for Jan-March quarter of year 2003 as compared to a profit of Rs 257.9 million for the corresponding period of last year. As a result EPS came down from Rs 5.40 to Rs 5.21. Sales increased but higher cost of goods sold eroded the profit. Sales went up from Rs 1,378.9 million to Rs 1,577.5 million. Cost of sales went up from Rs 882 million to Rs 1,014 million. Operating expenses increased from Rs 111 million to Rs 127 million. Other income came down from Rs 189 million to Rs 166 million. However, management's efforts to contain financial and other charges helped in containing erosion of bottom line. These charges came down from Rs 72 million to Rs 66 million.

CHASHMA SUGAR MILLS

The company seems to be experiencing decline in sales that is affecting its bottom line. During Jan-March quarter of 2003 it has posted sales worth Rs 193 million as compared to sales of Rs 371 million for the corresponding period of year 2002. Gross profit plunged from Rs 55.6 million to Rs 29.7 million. Sales during six-month period declined from Rs 647.7 million to Rs 346.4 million. Gross profit plunged from Rs 70 million to a little less than Rs 23 million. However, erosion in bottom line was contained due to reduction in financial charges coming down from Rs 9.6 million to Rs 2.4 million. EPS came down from Rs 2.03 to Rs 0.14.

PAKISTAN INTERNATIONAL AIRLINE

The national carrier managed to improve its sales for Jan-March quarter of year 2003. Sales went up from Rs 11,967 million for Jan-March period of year 2002 to Rs 13,055 million for the quarter under review. Gross profit improved from Rs 1,756.6 million to Rs 1,982.7 million. However, financial charges went up from Rs 561 million to Rs 617 million. A provision of Rs 325 million against deferred tax brought down profit after tax. No such provision was made for the corresponding period of year 2002. However, lower other provisions and higher other income contained erosion of bottom line. Other provision came down from Rs 93.4 million to Rs 13.7 million. Other income went up from negative Rs 14 million to positive Rs 151 million.

 

 

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

Hub Power

38.25

37.90

38.20

204,245,500

P.T.C.L.A

29.10

28.45

29.05

146,248,000

National Bank

30.80

27.30

30.05

91,290,000

FFC JORDAN

14.00

13.45

13.75

83,752,500

P.S.O. XD

234.70

228.35

233.25

82,111,100

M.C.B. XD

40.95

37.55

39.85

35,723,500

Pak. PTA Ltd.

9.15

9.10

9.10

5,723,000

Shell Pak

441.50

422.00

431.00

3,729,200

Askari Bank

30.20

28.40

29.80

1,598,000

Union Bank

16.70

15.30

16.70

727,000