STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Sept 06, 2003

 

The KSE-100 index was not able to sustain above 4,500 level amid uncertainties and profit taking. However, interest in blue chips and announcement of results kept investors' interest high. The public offer of PICT received good response, it was oversubscribed. While bidding for PSO has been delayed, the market fear deferment of PTCL for a couple of years. The announcement of timerame for further divestment of SSGC and NBP shares may provide some impetus.

 

 

 

The Governing Board of Directors of the Karachi Stock Exchange has approved the recomposed KSE-100 index. The revised index will be implemented w.e.f. September 15, 2003. The recomposed index, based on the prices of June 30, 2003 will capture the market capitalization to the extent of 83.84% of the total market capitalization as compared to 81.49% of the current index.

BANK AL-HABIB

The bank has posted Rs 364 million profit after tax for the first half of year 2003 as compared to a profit of Rs 133 million for the corresponding period of last year. While the increase in profit of most of the commercial banks is mainly due to higher dividend income and capital gains, improvement in profit of Bank AL Habib comes from concentration on its core banking activities. Net mark-up come after provision went up from Rs 350 million to Rs 779 million. Non-mark-up income grew from Rs 250 million to Rs 350 million. However, administrative expenses went up 334 million to Rs 474 million. This increase can be attributed to the ongoing programme for the improvement of branch network. The bank did not announce payment of any interim dividend at the time of release of its half-yearly accounts.

SAUDI PAK COMMERCIAL BANK

There seems to be substantial improvement in the financial health of the bank after the takeover by the new management. However, wiping out accumulated losses may take some time. The bank has posted Rs 365.7 million profit before tax for the first half of year 2003 as compared to a profit of Rs 2.1 million for the corresponding period of last year. However, profit after tax reduced to Rs 259.6 million due to provision of Rs 196.7 million against current tax liability and another Rs 50.9 million for prior year and Rs 11.9 million against deferred tax. This improvement in profit can be attributed to increase in mark-up income, income/gain on investment and reduction in provision against non-performing loans and advances. Mark-up income grew from Rs 276.7 million to Rs 734.8 million. Income/gain on investment went up from Rs 6.7 million to Rs 365.3 million. Fees, commission and brokerage income registered growth from Rs 54.5 million to Rs 97.8 million.

NESTLE MILKPAK

The company seems to be benefiting from the improvement in purchasing power of its niche market. However, increase in operating expenses hints towards growing competition. The company has posted Rs 411 million profit after tax for the first half of year 2003 as compared to a profit of Rs 378 million for the corresponding period of last year. The improvement in bottom line can be attributed to higher turnover. Sales went up from Rs 4,762 million to Rs 5,353 million. Cost of sales grew from Rs 3,327 million to Rs 3,734 million. There was significant increase in operating expenses, going up from Rs 760 million to Rs 906 million. The company has also benefited from the declining trend in interest rates as financial charges came down from Rs 53 million to Rs 35 million. The Board of Directors approved distribution of Rs 6/share interim dividend. No interim dividend was paid at the time of announcement of six months results for year 2002.

 

 

HIGHNOON LABORATORIES

The company has posted Rs 14 million profit after for the first half of year 2003 as compared to a profit of Rs 12 million for the corresponding period of last year. This increase can be attributed to higher sales, going up from Rs 383 million to Rs 418 million. Cost of sales went up from Rs 237 million to Rs 260 million. There was increase in administrative, general selling and promotional expenses and decrease in other income. However, this increase was compensated by reduction in financial charges, going down from Rs 23 million to Rs 19 million. As a result of improvement in bottom line EPS went up from Rs 1.19 for the fist half of year 2002 to Rs 1.39 for the period under review.

PAKISTAN CABLES

Pakistan Cables is celebrating its Golden Jubilee this year. The stockholders must have been pleased to hear announcement of 55% final dividend and issue of 25% Bonus Shares at the time of release of its financial results for the year ending June 30, 2003. The shareholders have already received 15% interim dividend, making 70% payout for the full year. The company had paid 30% dividend for the year 2002. The improvement in bottom line has mainly come from increase in sales, going up from Rs 800 million for the year 2002 to Rs 911 million for the year under review. EPS hiked from Rs 3.74 for year 2002 to Rs 14.26 for the year 2003.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

Hub Power

44.10

42.75

42.75

255,386,500

P.T.C.L.A

39.40

38.05

38.10

230,738,000

D. G. K. Cement

46.15

43.85

45.30

179,354,000

FFC JORDAN

19.15

18.05

18.05

73,950,500

Sui North Gas

46.70

44.25

45.15

60,510,000

M.C.B.

56.70

56.15

56.60

41,809,000

Sui South Gas

34.90

33.10

33.10

18,135,500

Engro Chem

97.15

94.95

94.95

6,283,900

P.I.C.I.C.

52.50

49.00

49.00

1,507,500

PICIC Bank SPOT

38.35

33.60

33.60

944,000