STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated November  08, 2003

 

The KSE-100 index remained under pressure throughout the week. The bears didn't allow the bulls to takeover. Some of the analysts attribute the selling pressure to new prudential regulations regarding investment of commercial banks in equities. However, others refuse to accept this rationalization. They say, "As usual brokers are trying to show their muscles. They had resisted appointment of non-members on the Board of Directors of stock exchanges and implementation of T+3 system. However, like in the

 

 

 

past, they would accept the new regulations." The others say that if the central bank is serious, it must link investment by banks in equities to deposits rather than to equity." It is also believed that some of the influential brokers are already in contact with Minister for Finance and the issue will be resolved amicably.

MARI GAS COMPANY

The hike in feedstock price has boosted income of the company but the real beneficiary emerges to be the GoP. Gross sales for July-Sep quarter of year 2003 were Rs 3,328 million, out of this Rs 2,100 million went towards development surcharge, Rs 154 million towards excise duty and Rs 463 million towards GST. Net sales for the quarter were Rs 611 million, more than double the amount of Rs 294 million for the corresponding quarter of year 2002. The other factors contributing to higher profit were reduction in financial charges and increase in other income. As a result profit before tax jumped from Rs 75 million to Rs 215 million.

PAKISTAN TELECOM COMPANY

According to a report from Capital One Securities, pricing decisions have become a routine in competitive voice carrying business. PTCL in order to secure the traffic volume and operating margins has also undertaken a series of such measures. The company recently reduced its international and long distance domestic call tariff. Historically, the elasticity of the reduction in tariffs has remained pretty high leading to volume growth. However, this time the impact owing to the tariff reduction on the traffic growth may not be as high and could be more of a result of the addition in lines in service.

ICI PAKISTAN

The company has posted Rs 332 million operating profit for July-Sep quarter of year 2003 as compared to a profit of Rs 240 million for the corresponding period of last year. Operating profit for the nine month period of year 2003 was Rs 946 million, 33% above the profit for corresponding period of year 2002. However, the reduction in other income eroded the benefit of improvement in paints, chemicals and other divisions. The reduction in interest income was due to repayment of subordinated loans related to Pakistan PTA. Financial charges also came down. Profit before tax for the quarter and nine months was Rs 231 million and Rs 641 million respectively.

PAKISTAN PTA

Higher volume and lower conversion costs have helped the company in improving its profitability. Better cost controls also helped in posting operating profit. The company has posted Rs 58.4 million operating profit for July-Sep quarter of year 2003 as compared to an operating loss of Rs 202 million for the corresponding quarter of last year. Reduction in financial charges also helped in containing loss after tax for the quarter to Rs 445 million as compared to a loss of Rs 643 million for the corresponding quarter of last year. However, the company still carries a huge load of accumulated losses, as high as Rs 6,700 million as on September 30, 2003.

ATTOCK CEMENT PAKISTAN

The company has posted Rs 92 million profit after tax for July-Sep quarter of year 2003 as compared to a profit of Rs 94 million for the corresponding quarter of year 2002. However, profit after tax for the quarter under review was higher than profit for the corresponding quarter of last year, going up from Rs 49 million to Rs 56 million. Sales increased from Rs 414 million to Rs 431 million. However, the increase in cost of goods sold allowed marginal increase in gross profit, going up from Rs 104 million to Rs 110 million. The other factors affecting profit were increase in operating expenses, decrease in other income and increase in financial and other charges.

PAKISTAN SYNTHETICS

The company has posted Rs 12 million loss after tax for July-Sep quarter of year 2003 as against a profit of Rs 18 million for the corresponding quarter of last year. The reversal of fortune can be attributed to insufficient revenue, even to cover cost of goods sold. The company posted Rs 6.7 million gross loss for the quarter under review as against about Rs 38 million gross profit for the corresponding quarter of last year.

MILLAT TRACTORS

Higher sales during July-Sep quarter of year 2003 had a positive impact on the bottom line. Gross profit for the quarter was Rs 129 million as compared to profit of Rs 88 million for the corresponding quarter of year 2002. The company posted Rs 50 million profit for the quarter under review as compared to Rs 28 million profit for the corresponding quarter of year 2002.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

D.G.K.Cement

39.35

36.65

38.40

89,998,500

Hub Power XD

34.85

33.70

34.20

68,088,000

P.T.C.L.A XD

33.75

31.65

31.90

66,552,000

P.S.O. XD

257.90

242.50

246.00

59,159,300

Fauji Cement

8.95

8.20

8.55

21,457,500

Pak OilfieldsXD

184.50

175.30

178.85

19,566,800

National Bank

44.00

42.50

44.00

13,410,500

M.C.B.

42.25

40.65

42.00

7,486,000

Pak.PTA Ltd.

11.25

10.65

11.00

5,420,000

I.C.I.

72.70

71.80

72.70

4,234,100