STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Aug 23, 2003

 

The KSE-100 index continues to move upward. However, profit taking is common. The announcement of improved results by the listed companies keeps investors' sentiments bullish. The only and growing concern is the growing breach between the government and the opposition. However, investors are paying the least attention to this issue.

 

 

 

PAK SUZUKI MOTOR COMPANY

The company has posted Rs 814 million profit after tax for the first half of 2003, 130% higher as compared to the corresponding period of last year. Enhanced capacity utilization has generated economies of scale and lower cost. The increase in margin has come despite the price reduction. The sector is heading towards demand saturation and the company is expected to face fierce competition in its core category of 800-1000cc passenger cars from the new entrants.

MUSLIM COMMERCIAL BANK

MCB has posted Rs 2.11 billion profit for the first half of year 2003. It was about 40% higher as compared to the profit for the corresponding period of last year. This increase in profit has come despite low credit demand and substantial decline in interest rates. The increase in income can be attributed to increase in fee-based income and capital gains made during the period. Deposits increased from Rs 182,706 million to Rs 209,389 million. Profit after tax went up from Rs 838 million to Rs 1,211 million. EPS improved from Rs 2.73 to Rs 3.95. However, the bank did not declare second interim dividend. Market was expecting at least 15% second interim dividend. The bank had declared 15% interim dividend at the time of release of financial results for the first quarter. Lately, the bank was conferred Euro-Money Excellence Award 2003, declaring it as 'The Best Bank in Pakistan'. The bank has received this prestigious award for the third time in last four years.

SUI SOUTHERN GAS COMPANY

The company has signed an Implementation Agreement with Jamshoro Joint Venture for setting up an LPG extraction plant in Hyderabad at a cost of US$ 31 million. The project is being set up on Build Own Operate (BOO) basis and based on Badin gas being purchased from British Petroleum. The plant is scheduled to be commissioned by October 2004. It will provide additional 350 to 400 metric tones of LPG per day, which is about 40% of the country's current production. SSGC is installing a state-of-the-art LPG recovery plant that guarantees 95% propane recovery. SSGC has recently embarked on 5-year expansion plan that will increase its gas handling capacity to 1.5 billion cubic feet per day, and increase its customer base to over two billion.

SHELL PAKISTAN

The company has posted Rs 1,254 million profit for the year ending June 30, 2003, 18% higher than the profit for the corresponding period of last year. Sales went up by 13% to Rs 88.9 billion. According to Abdullah Amin of AKD Securities, sales went up because of increase in international prices of oil. Whereas, Farooq Rahmatullah, Managing Director of the company estimates the growth in profit was mainly due to increase in distributor's margin coupled with the shift in sales mix to higher margin products. The total dividend payout by the company for the year 2003 comes to 255%. The company continues its investment in upgrading infrastructure. During the year the company disbursed the final tarnche of its investment in the White Oil Pipeline, raising its cumulative investment in the project to Rs 1.9 billion. Additionally the company spent Rs 814 million on capital expenditure.

ABBOTT LABORATORIES

The company has posted Rs 183 million profit after tax for first half (Dec-May) as compared to a profit of Rs 131 million for the corresponding period of last year. Net sales went up from 1,946 million to Rs 1,990 million. Cost of goods sold and services came down from Rs 1,350 million to Rs 1,290 million. Profit before tax increased from Rs 211 million to Rs 294 million. EPS improved from Rs 2.78 to Rs 3.88. The improvement in bottom line enabled the company to improve its interim dividend payment to Rs 2 for the period under review as compared to a payout of Rs 1.50 for the first half of last year.

SIEMENS (PAKISTAN) ENGINEERING

The company has posted Rs 221 million profit for the first nine months ending June 30, 2003 as compared to a profit of Rs 194 million for the corresponding period of last year. Sales went up from Rs 3,360 million to Rs 4,232 million, registering a growth of 26%. This increase can be attributed to execution of some projects in oil and gas, information technology and energy sectors. Higher sales were achieved in diesel generating sets and transformers. Operating profit improved from Rs 352 million to Rs 429 million. The adverse impact of increase in cost of goods sold, due to appreciation of Euro, was absorbed through better cost controls and increase in commission and allowances earned. The company also paid 130% interim dividend amounting to Rs 101 million. No interim dividend was paid during nine months of last year.

 

 

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

P.T.C.L.A

38.60

36.90

38.60

586,428,500

Hub Power

44.95

44.00

44.00

521,851,500

FFC JORDAN

18.80

17.90

17.95

128,893,000

Sui North Gas

46.90

45.35

45.40

104,685,000

National Bank

40.75

38.95

40.75

92,882,000

D.G.K.Cement

41.40

37.30

41.10

88,272,500

Nishat Mills

43.05

37.30

41.40

83,789,000

Lucky Cement

23.90

21.00

23.90

66,536,500

Sui South Gas

35.90

34.50

34.50

34,067,000

M.C.B.

52.95

50.50

52.95

31,436,000