STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated October 18, 2003

 

The KSE-100 index experiences less volatility during the week, except for PSO. Some investors staged a demonstration against Dr. Hafeez Seikh at Lahore regarding persistent delay in fixing the bidding date and his statements causing surges in its price. However, an analysts said, "The speculators should not blame any one except themselves for hoping against the hope". It is clear that unless some of the contentious issues facing privatization of PSO are resolved the final date for bidding cannot be fixed.

 

 

 

 

Couple of weeks back when the KSE-100 index lost substantial weight in quick succession, the apprehensions were that the index may go as low as 3,500 level. Saying this the punters were of the opinion that offer of NBP and OGDC shares has the potential to resist further fall. The Privatization Commission has not announced the date for the subscription of SSGC shares. Looking at the financial results of SSGC or the year ended June 30, 2003 it is expected that it may also receive overwhelming response.

OGDC

The Oil & Gas Development Company (ODGC) has posted Rs 20.673 billion net profit for the year ending June 30, 2003, registering a 23% growth compared with profit for last year. OGDC has been operating on self-financing basis since 1989 and achieved a landmark in year 2003 by posting highest ever profit after tax. The company has the largest oil and gas assets portfolio in Pakistan. This also includes significant non-operated working interests. A number of development and expansion projects currently under implementation will add to future revenue of the company. The GoP has decided to divest part of its holding in the company through stock exchanges. The Privatization Commission has fixed the offer price at Rs 32 for a share having face value of Rs 10.

NATIONAL BANK OF PAKISTAN

The third offer of 3.2% shares of National Bank has received overwhelming response. The Privatization Commission had offered 3.2% or 13.13 million shares at of price o Rs 46 per share. The public offer was estimated to fetch Rs 604 million. The market punters say that at least double the amount has been subscribed. It is believed that the largest amounts have been received from financial institutions. These include EOBI, PICIC, NIT, Pak Kuwait Investment Company and Arif Habib Investment. Interest of financial institutions was mainly due to tonnes of money being in their kitty. However, some analysts say that response from retail investors was rather low because the share was being traded around Rs 45 at the time of public offer. The reason for the exceptional interest of financial institution was due to the difference in investment strategy of the two types of investors. While retail investors were looking at dividend yield, the decision of institutional investors was based on book value of the share.

UNILEVER

There is a forecast that Unilever's profit for the third quarter of year 2003 may be lower as compared to the corresponding quarter of last year. The decline in profitability is expected due to sluggish sales of soap and detergents and rising cost of edible oil. While the market for soap and detergent is sluggish due to increased smuggling of these products, rising international prices of palm oil are eroding margins on edible oil. However, growth in the premium tea market remains strong and expected to contain erosion of overall profitability of the company. Analysts forecast a profit after tax of around Rs 1.7 billion for the full year and dividend payout of Rs 125 per share. This comes to around 8% dividend yield. The scrip is still being traded at a discount to its fair value.

DEWAN SALMAN FIBRE

Profit of the company took a nose-dive for the year ended June 30, 2003 when compared with last year. The company has posted Rs 28 million profit after tax for the year 2003 as compared to a profit of Rs 317 million for the last year. This decline can be attributed to lower PSF prices and increase in cost of goods sold. Net sales grew from Rs 14,975 million to Rs 15,718 million. Cost of goods sold went up from Rs 12,820 million to Rs 14,438 million. As a result gross profit plunged from Rs 2,156 million to Rs 1,438 million. However, there was a decrease in financial and other charges, going down from Rs 1,365 million to Rs 994 million. While approving the annual accounts, the Board of Directors preferred to skip payment of dividend to shareholders. No dividend was paid for the year 2002 also.

 

 

OTSUKA PAKISTAN

The company has posted Rs 19.5 million for July-September quarter of year 2003 as compared to a profit of Rs 8.9 million for the corresponding period of last year. The increase in profit can be attributed to the growth in sales, going up from Rs 88 million to Rs 123 million. There was a decrease in financial charges. However, other income also came down from Rs 801 million to Rs 260 million. The EPS improved from Rs 0.53 to Rs 1.27.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

Hub Power

36.05

34.75

35.40

131,964,500

National Bank

47.75

45.85

47.45

66,271,500

P.T.C.L.A

37.50

36.55

37.10

43,974,500

FFC JORDAN

16.55

15.45

15.45

42,251,500

Pak.PTA Ltd.

12.35

11.35

11.55

29,919,000

M.C.B.

50.40

48.10

49.00

24,799,500

I.C.I.

76.70

73.30

75.50

14,483,500

Lucky Cement

21.85

20.35

20.35

13,256,500

Engro Chem

82.50

78.10

82.50

9,833,900

Fauji Fert

91.35

89.00

89.80

1,594,300