STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated October 25, 2003

 

Capital One Equities (Formally IP Securities) has released 'Payout Guide 1999-2003'. It provides information on the dividend payouts of selected companies from each sector of the Karachi Stock Exchange. All those companies that had distributed dividend over the last three years have been included in this guide. Besides, providing payout information other useful indicators such as book value per share and earning per share are also given. It is a good reference manual and should be kept handy by all the investors. Though, historic payout cannot ensure dividend payment in the future, it shows the mindset of sponsors, their willingness to share profit with shareholders.

 

 

 

 

The intra day movement of KSE-100 index during the week shows that the broker-led muddle has not been resolved completely. Operations of two brokers were suspended till they completely settle their accounts. However, it is believed that the enhanced activity in second tier scrips is yet another attempt to cover up the losses. Prices of a large number of these scrips have gone much higher than the fair value.

Quarterly results of volume leaders and blue chip companies have started pouring in. While these companies may post handsome profit all of them may not announce any interim dividend. The NBP public offer was oversubscribed, though mostly due to large-scale subscription by a few institutional investors. According to some analysts its is feared that some brokers may try to push its share price beyond Rs 55 to make quick buck. However, they also say that once the share price touch this level it will very shortly fall to around Rs 40 level.

ATTOCK REFINERY

Attock refinery has posted Rs 109 million loss after tax for June-Sep 2003 quarter as against a profit of Rs 67 million for the corresponding period of last year. The nosedive can be attributed to cost of goods sold getting out of control. There was increase in net sales, going up from Rs 5,183 million to Rs 5,546 million. As against cost of goods sold skyrocketed from Rs 5,091 million to Rs 5,623 million. As a result, company posted gross loss of Rs 76.5 million for the quarter under review as against a profit of about Rs 97 million. Other income also came down from Rs 69 million to Rs 26 million. However, some respite was provided due to decline in financial cost, going down from 36 million to Rs 22 million.

PAKISTAN REFINERY

The refinery has posted Rs 50 million profit after tax for June-Sep quarter of year 2003 as against a profit of Rs 123 million for the corresponding quarter of last year. This decline can only be attributed to decline in sales going down from Rs 6,864 million to Rs 6,119 million. Gross profit went down from Rs 240 million to Rs 115 million. There was increase in operating expenses and decrease in other income. However, the erosion in bottom line was contained due to lower financial charges, going down from Rs 26 million to about Rs 8 million. As a result of fall in profit EPS slide down from Rs 6.15 to Rs 2.52.

 

 

NATIONAL REFINERY

The refinery has posted Rs 322 million profit after tax for June-Sep quarter of year 2003 as compared to a profit of Rs 207 million for the corresponding period of last year. Net sales grew from Rs 7,120 million to Rs 8,629 million. Cost of sales went up from Rs 6,740 million to Rs 8,116 million. Operating expenses also hiked from Rs 102 million to Rs 127 million. However, the increase in other income and decrease in financial charges helped in improving the bottom line. Other income went up from Rs 60 million to Rs 108 million. Financial charges come down from Rs 7.6 million to Rs 6.5 million. As a result EPS improved from Rs 3.11 million to Rs 4.83.

MAPLE LEAF CEMENT

The company has posted Rs 202 million profit after tax for June-Sep quarter of year 2003 as compared to a profit of Rs 26 million for the corresponding quarter of last year. This hike in profit can be attributed mainly to increase in sales and stringent cost controls. Sales grew from Rs 654 million to Rs 825 million. As against this, cost of sales went up marginally from Rs 515 million to Rs 529 million. Gross profit improved from Rs 139 million to Rs 296 million. The reduction in financial charges going down from Rs 96 million to Rs 68 million, further boosted the bottom line. EPS improved from meager Rs 0.14 to Rs 1.12. It seems that the bad days are over and shareholders may get some return on their investment in the company.

LAWRENCEPUR WOOLLEN & TEXTILE MILLS

The company has posted Rs 38 million profit after tax for June-Sep quarter of year 2003 as compared to a profit of Rs 7.7 million for the corresponding quarter of last year. The increase in profit mainly came from other income, going up from Rs 2.4 million to Rs 31.2 million. Otherwise operating went up only from Rs 10.5 million to Rs 11.4 million. The company seems to be enjoying strong cashflow because its financial charges have been less than one million rupee, this quarter as well as the corresponding quarter of last year.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

Hub Power

35.75

34.70

35.05

117,789,500

P.S.O.

264.00

247.10

261.90

107,290,600

P.T.C.L.A

37.30

32.65

34.30

106,809,500

National Bank

48.00

44.85

45.40

39,003,500

Pak Oilfields

190.25

171.70

182.00

32,691,500

I.C.I.

78.40

73.40

76.40

18,607,400

Bosicor Pak

20.95

17.20

17.20

8,670,500

Engro Chem

83.00

78.75

80.90

6,483,600

Fauji Fert

90.00

87.35

88.75

1,895,400

Shell Pak

379.50

374.00

375.00

151,800