STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated November  13, 2003

 

In the absence of positive news flow and gross indulgence of retail investors in profit taking the market remained highly volatile during the week. The full of surges behavior of the market can be attributed to high average Badla rate, which came down from 17.6% to 14.7%. In the following weeks no significant impact of the recently announced revised list of COT eligible securities (effective from December 15, 2003) is expected because the eligible securities encompass about 95% of the total COT investment on an average basis. Going forward not much of activity in the shares of volume leaders is expected.

 

 

 

However, scrips like Bosicar, TRG and PICT may witness speculative trade. The KSE-100 index is expected to remain range bond. Any expectation that the index may cross 5000 level before the year ends can only be termed 'hoping against the hopes'.

NISHAT (CHUNIAN)

Despite increase in sales during the year ending September 30, 2003, as compared to last year, gross profit declined due to higher cost of goods sold. However, the Board of Directors approved distribution of Rs 2.5 per share dividend among the shareholders, the company has also distributed Rs 2.5 per share dividend for the year 2002. Sales increased from Rs 4,054 million to Rs 4,227 million. Cost of sales went up from Rs 3,087 million to Rs 3,484 million. Gross profit declined from Rs 967 million to Rs 742 million. Operating expenses also went up from Rs 216 million to Rs 249 million. Further erosion in bottom line was contained due to decline in financial and other charges, going down from Rs 218 million to Rs 144 million. As a result EPS came down from Rs 11.35 for the year 2002 to Rs 7.38 for the year under review.

TANDLIANWALA SUGAR MILLS

The company has posted Rs 27 million loss after tax for the year ending September 30, 2003 as against Rs 189 million profit for last year. A point of satisfaction is that retained earnings, amounting to Rs 170 million, saved the company from going into the red. The reversal of fortune can be attributed to the decline in sales, going down from Rs 1,386 million to Rs 843 million. Gross profit came down from Rs 283 million to Rs 55 million. The Board of Directors have proposed to issue Right Shares amounting to Rs 57.850 million at 40% premium.

 

 

TOWELLERS

The company has posted Rs 53.9 million profit after for the year ending September 30, 2003 as compared to Rs 46.67 million profit for the last year. Sales increased from Rs 1,778 million to Rs 1,945 million. However, gross profit declined due to hike in cost of goods sold, going up from Rs 1,557 million to Rs 1,731 million. Operating expenses at Rs 129.5 million were around the same level of last year. Reduction in financial charges, from Rs 29.6 million to Rs 22.3 million, helped in improving the bottom line. EPS improved from Rs 2.75 to Rs 3.17 but dividend payout to shareholders declined from 10% to 5% due to the decision of Board of Directors. In the absence of detailed report it is difficult to understand the reason the company is accumulating profit, touching Rs 295 million as on September 30, 2003.

KHHINOOR TEXTILE MILLS

The company has posted Rs 155 million profit after tax for the year ending September 30, 2003 as compared to Rs 20 million profit for the previous year. However, the Board of Directors approved distribution of 10% dividend among the shareholders, amounting to Rs 80 million and chose to transfer Rs 70 million to general reserves. Increase in sales seems to be the reason behind improvement in bottom line. Sales went up from Rs 4,323 million to Rs 5,036 million. Cost of goods sold went up from Rs 3,825 million to Rs 4,354 million. Gross profit improved from Rs 498 million to Rs 682 million. The management was able to exercise better control on selling, administrative and general expenses. However, other income came down from Rs 109 million to Rs 43 million. The huge financial charges seems to be a constant burden on the earnings of the company, amounting to Rs 287 million for the year under review.

PIONEER CEMENT

The company has posted Rs 157 million loss after tax for the year ending June 30, 2003 as against Rs 49.5 million profit after tax for last year. This reversal of fortune can only be attributed to hike in cost of goods sold. Net sales grew from Rs 992 million to Rs 1,031 million. Whereas cost of goods sold went up from Rs 724 million to Rs 917 million. As a result gross profit plunged from Rs 268 million to Rs 114 million. The other factors responsible for erosion of bottom line seem to be decline in other income and hike in financial charges. Other income came down from Rs 46 million to Rs 11 million. It is worth noting that despite the declining trend in interest rates financial charges went up from Rs 168.7 million to Rs 196.9 million. A point of concern for the shareholders is that accumulated losses exceeded Rs 833 million as on June 30, 2003.

Company High  Low Closing Week's Turnover

Oil & Gas Deve.

53.85

50.10

53.85

585,218,500

D.G.K.Cement

46.70

44.25

45.35

177,187,000

Fauji Fert Bin

20.85

19.85

19.85

148,111,500

P.T.C.L.A XD

36.45

35.70

35.85

120,968,500

Hub Power XD

39.20

38.05

39.20

119,884,000

National Bank

52.25

50.75

52.25

91,398,500

Sui South Gas

31.30

26.40

31.30

38,728,500

Bosicor Pak

25.65

23.85

23.85

21,937,500

M.C.B.SPOT

51.95

50.25

51.25

15,326,000

Sui North Gas

42.00

40.20

42.00

5,368,000