STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Sept 27, 2003

 

Though the weekend closing of the KSE-100 index does not show any substantial erosion in value, the market remained extraordinarily volatile during the week. Intra day movement throughout the week was full of surges due to profit-taking and short selling. Price of HUBCO moved in either direction on the rumours that International Power was trying to grab as much shares as possible. Lately International Power had sold 5% of its total stake in HUBCO. Trading in PTCL shares also remained high due to better than expected results. Major activity was also witnessed in Pakistan Oilfields.

 

 

 

According to the analysts, the decline in prices was across the board. While the fall in prices of second tier scrips was sharp, prices of volume leaders also went down but not so sharply. One of the reasons for sharp fall in second tier scrips was that the prices had gone up too high and dividend yields became highly unattractive.

Though, there seems to be no change in economic fundamentals enjoyed by Pakistan, the recent fall in values is not easy to comprehend. However, some analysts support the widespread perception that the market is in the grip of manipulators. As the investors declined to accept all the possible reasons for correction, market manipulators took the steps at their own.

There are no two views about the future direction of index. However, the disagreement is on the low level the index may touch before taking a rebound. Some analysts say that index may take a rebound around 3,600 level, whereas others hint that the index may go as low as 3,100 level before taking a u-turn.

FIRST GRINDLAYS MODARABA

The largest multipurpose modaraba maintained its dividend payout at 40% for the year ending June 30, 2003 at the level of previous year. There was marginal decline in lease rental earned, from Rs 1,081 million to Rs 1,035 million. However, the decline was more than compensated by the increase in profit on musharika arrangement and income on investment. Profit on musharika went up from Rs 21 million to Rs 39 million. Income on investment grew from Rs 1.7 million to Rs 5.5 million. While there was decline in financial charges, there was increase in operating expenses. However, higher other income, helped in improving profit to Rs 175 million for the year 2003 as compared to a profit of Rs 172 million for the last year.

FIRST HABIB MODARABA

The modaraba has posted Rs 69.6 million profit for the year ending June 30, 2003 as compared to profit of Rs 65 million for the last year. The Board of Directors chose to share the higher income with the certificate holders by deciding to distribute 21% dividend among the certificate holders. The modaraba had distributed 20% dividend among the certificate holders for the year 2002. Operating income of the modaraba went up from Rs 567 million for the year 2002 to Rs 744 million for the year under review. However, the advantage was eroded to a large extent due to increase in operating expenses, going up from Rs 495 million to Rs 666 million.

FIRST HABIB BANK MODARABA

As a result of higher profit for the year ending June 30, 2003, the Board of Directors also decided to improve payout among the certificate holders. Profit improved from Rs 84 million for the year 2002 to Rs 98 million for the year under review. The dividend payout went up from 16% to 18%. The improvement in bottom line can be attributed to higher net operating income. However, there was increase in administrative expenses.

ATTOCK CEMENT PAKISTAN

The company has posted Rs 132 million profit after tax for the year ending June 30, 2003 as compared to a profit of Rs 96 million for the last year. Though, there was increase in sales, net profit for the year 2003 was lower as compared to last year due to increase in cost of goods sold. Sales grew from Rs 1,370 million to Rs 1,443 million. Cost of goods sold went up from Rs 1,108 million to Rs 1,188 million. Operating expenses also went up from Rs 73 million to Rs 80 million. However, higher other income and lower financial and other charges helped in the improvement of bottom line. Other income grew from Rs 37 million to Rs 44 million. Financial and other charges came down from Rs 37 million to Rs 23 million. As a result of improvement in profit, the Board of Directors approved distribution of 10% dividend among the shareholders amounting to Rs 72 million. The company had distributed 15% dividend and also issued 10% Bonus Shares last year.

PAKISTAN INDUSTRIAL & COMMERCIAL LEASING

The company has posted Rs 36 million loss after tax for the year ending June 30, 2003 as compared to a loss of Rs 122 million for the last year. There seems to be some thing wrong because income came down from Rs 106 million for the year 2002 to Rs 57 million for the year under review. However, the loss seems to be lower due to reduction in financial charges, lower return paid on certificates of investment and operating expenses. Another factor providing some respite was a very substantial reduction in provision against doubtful lease receivables.

 

 

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

P.T.C.L.A

39.55

37.60

38.55

419,645,500

Hub Power

38.90

37.00

37.55

249,348,000

FFC JORDAN

18.70

17.75

17.75

152,340,000

Pak Oilfields

374.00

360.10

360.10

79,493,600

National Bank

49.50

47.40

48.80

66,151,500

P.S.O.

301.00

280.05

286.85

25,932,900

M.C.B.

50.65

46.15

47.60

22,699,500

Engro Chem

85.25

81.75

83.10

18,624,300

Fauji FertXD

96.25

93.95

94.00

9,105,200

Shell PakXD

419.40

397.90

407.50

166,600