STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated November  20, 2003

 

The KSE-100 index managed to close at 4311 level at the end of the week. It seems a pleasant surprise in the backdrop of ongoing confrontation between the government and the opposition. During the week the index declined due to the expected change in the exposure rules. A meeting was scheduled on Friday to remove the irritants. The overwhelming feeling was that the management of Karachi Stock Exchange would amend the rules as per desire of the leading brokers.

 

 

 

The GoP policy regarding privatization of large and profit making state-owned enterprises is talk of the town. The GoP, in the recent past had decided to list a number of state-owned enterprises and divest part of its shareholding in these entities through stock exchanges. This policy was followed in case of NBP and OGDC. However, the GoP sold 51% shares of UBL and transferred its management control to strategic investors but local investors are still waiting public offer of its shares.

There is a loud talk that the bidding for Habib Bank (HBL) will be held in January 2004 and the management control will be transferred to staregic before the financial year end. It is also being said like UBL the management control of HBL will be transferred to foreign investors. The only point of concern for the GoP and the management is the request of the investor to bring down number of HBL employees by about 5,000.

AL-ABBAS SUGAR MILLS

The financial year ending September 30, 2003 will be remembers by the management as well as the shareholders because of distribution of 18% dividend. The announcement has come at a time the survival of sugar industry, particularly those located in Sindh, is at stake due to government policy. The company has posted Rs 86 million profit before tax for the year 2003 as against Rs 11 million loss for the year 2002. This exceptional turn around can only be attributed to stringent cost controls. There was a decline in sales, going down from Rs 1,271 million to Rs 1,205 million. As against this cost of sales came down from Rs 1,203 million to Rs 1,012 million. Gross profit took a quantum jump from Rs 68 million to Rs 193 million. Operating expenses as well as financial charges for the year 2003 were also lower as compared to year 2002. All these factors contributed towards improved on bottom line and dividend for the shareholders. No dividend was paid for the year 2002.

HUSEIN SUGAR MILLS

The company with its mills in Punjab has also been able to improve its dividend payout from 15% for the year 2002 to 17.5% for the year ending September 30, 2003. However, it financial accounts show the decline in sales as well profit after tax. Sales came down from Rs 1,200 million to Rs 705 million. Gross profit plunged from Rs 241 million to Rs 107 million. The company had posted Rs 144 million profit after tax for the year 2002 but profit available for distribution of Rs 57 million due to accumulated losses of Rs 86 million. The ESP declined from Rs 13.06 to Rs 3.28 but once shareholder note that the slate has been cleaned it may be a point of satisfaction for them.

PREMIUM TEXTILE MILLS

The company has posted Rs 20 million profit after tax for the year ending September 30, 2003 as compared to Rs 10.7 million for the last year. The improvement in bottom line can be attributed to a number of factors, i.e. increase in sales and decrease in financial charges. Sales went up from Rs 646 million to Rs 758 million. Cost of sales also increased from Rs 568 million to Rs 677 million. However, gross profit improved from Rs 77.7 million to Rs 80.5 million. Operating expenses also went up from Rs 20.9 million to Rs 24.3 million. Financial charges came down from Rs 34 million to Rs 26 million. EPS improved from Rs 1.73 to Rs 3.25 but Board of Directors preferred to maintain dividend payout at 15%, at the level of last year.

 

 

KHURSHID SPINNING MILLS

The year ending September 30, 2003 has added further load to accumulated losses, exceeding Rs 244 million as on September 30, 2003. The company has posted over Rs 9 million loss before tax for the year under review as against Rs 16 million profit the year 2002. This reversal of fortune can be attributed to decrease in sales and increase in cost of goods sold. Sales came down from Rs 362.4 million to Rs 361.9 million. As against this cost of sales went up from Rs 320.4 million to Rs 347.7 million. As a result gross profit plunged from Rs 42 million to Rs 14 million.

SINDH FINE TEXTILE MILLS

The company has also added to accumulated losses at the end of September 2003. It has posted Rs 38.6 million loss after tax for the year 2003 as compared to rupee one million loss for last year. Loss can only be attributed to decline in sales leading to Rs 11 million gross loss for the year under review as against Rs 37.4 million profit for the year 2002. However, the management succeeded in exercising better control on operating expenses and also bring down financial charges.

Company High  Low Closing Week's Turnover

Oil & Gas Deve.

54.95

52.65

53.20

403,366,500

Hub Power XD

39.50

38.80

39.50

156,833,500

D.G.K.Cement

45.00

44.35

45.00

106,442,500

Fauji Fert Bin

18.90

17.70

17.70

70,353,500

P.S.O.

278.40

275.10

278.40

57,623,000

National Bank

53.20

50.65

53.20

53,333,000

P.T.C.L.A XD

35.45

35.15

35.45

43,820,500

Bosicor Pak

23.95

23.15

23.60

10,434,000

M.C.B.XD

50.05

48.70

49.65

8,095,500

Adamjee Ins

64.50

64.00

64.40

4,324,500