STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated January  03, 2004

 

The market remained highly volatile at the back of high Badla volume and rates. During the whole week intra-day movement of the KSE-100 index was full of surges. Some analysts attribute this movement to the deliberate attempt of some of the brokers to push prices of a number of scrips in either direction. These include Kohinoor Textile, Bosicar, TRG, D. G. Khan Cement, Dewan Farooque Motors and Maple Leaf Cement.

 

 

The KSE-100 movement is expected to remain full of surges in the coming weeks. With further reduction in NSS rates more funds may find the way to equities market. The season for financial results is about to start. In anticipation of this major activity has been visible in shares of commercial banks and fertilizer companies.

AL-ZAMIN LEASING MODARABA

The public offer of Musharakah-based Term Finance Certificates (TFCs) by the company has been heavily oversubscribed to the tune of Rs 193.740 million against offer of Rs 50 million. This is the first ever Musharakah-based TFC issue by a company belonging to financial sector. The Modaraba has decided to exercise the green shoe option thereby increasing the total allotment to the public to Rs 100 million. All applications have been accommodated initially for a minimum allotment of TFCs of aggregate face value of Rs 5,000 and remaining on pro-rate basis. AMZ Securities has acted as Structuring Advisor and Arranger to the issue.

WORLDCALL BROAD BAND

It is a new company being listed at local stock exchanges. United Bank is acting as financial advisor, lead arranger and lead underwriter for Rs 1.5 billion equity issue. AKD Securities and Elixir Securities are co-arrangers and co-underwriters. Out of the Rs 1.5 billion equity issue, sponsors have injected Rs 460 million whereas foreign investors have participated to the tune of Rs 560 million. The public offer is for Rs 300 million. The company provides diversified services though one gateway, Internet, telephony and Cable TV. The company calls it 'Plug and Play' service. The company has already started providing service and todate has connected over 12,000 Cable TV subscribers and approximately 2,500 Internet over cable subscribers. Karachi has emerged the biggest market for the company.

FAUJI FERTILIZER BIN QASIM

Additional capital of Rs 6 billion was approved as part of restructuring plan of the company. Ordinary shares up to 600 million were authorized to be issued at face value of ten rupees. The three sponsors namely Fauji Foundation, Fauji Fertilizer Company and Jordan Phosphate Mines Company (JPMC) were required to purchase 500 million shares as per GoP's conditionality for the restructuring and raising additional capital. JPMC declined to purchase its share, and on the other hand sold out their shares and finished their equity in the company and termination agreement has also been finalized. The JPMC portion of the shares has been allocated to Fauji Foundation and Fauji Fertilizer Company as part of the resolution by the shareholders and also approved by the SECP. As such total of 575,791,397 shares have since been issued and balance of 24,208,603 shares are being issued as Right Shares to existing shareholders. The amount raised from Right Issue will be used for rescheduling of company's long term debt, to wipe out its accumulated losses and ensure its viability.

OGDC

The initial reaction after the release of financial results for Jul-Sep quarter of year 2003 was that EPS had come down to as low as Rs 1.09. Some of the investors were not able to understand the reason for the nose-dive because profit after tax for the 2003 quarter was more or less at the level of last year. The reason becomes evident when one reads that 300% bonus shares were issued during the quarter ended September 30, 2003. A closer look at the financial results shows that while there was increase in sales, operating expenses, royalty and operating expenses also went up. A point worth noting is that as on September 30, 2003 the company had unappropriated profit exceeding Rs 21.4 billion rupees. This helped the company in maintaining its financial expenses as low as Rs 12 million for the quarter, though three times the amount for the corresponding quarter of year 2002.

PAKISTAN INTERNATIONAL AIRLINE

The recent announcement of resumption of PIA flights to Delhi and various other destinations in South Asia are expected to increase its revenue. Increased Hajj traffic this year will further contribute towards higher earnings. The optimistic view is that the company may post over two billion profit (EPS: Rs 2.15) for the current financial year. There are expectations that profit may touch Rs 4.2 billion profit (EPS of Rs 6.15) for the year 2004. Analysts forecast decent growth for the airline for the years to come at the back of upgradation of its fleet. An improved fleet can help in reducing cost and boosting revenue.

 

 

Company High  Low Closing Week's Turnover

Oil & Gas Deve.

52.15

51.70

52.15

274,011,000

P.T.C.L.A XD

37.00

36.55

36.55

109,940,500

P.S.O.

290.00

286.10

286.10

72,332,300

D.G.K.Cement

45.70

45.00

45.00

54,114,000

Hub Power XD

38.70

38.40

38.40

52,883,000

Pak Oilfields

237.90

234.50

234.75

50,121,100

Bosicor Pak

26.20

23.75

26.20

36,412,500

National Bank

54.25

53.85

53.85

33,718,000

Fauji Fert Bin

17.90

17.30

17.80

27,642,500

Adamjee Ins

67.25

66.00

66.50

2,294,500