STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated January  31, 2004

 

The KSE-100 index continued its upward movement and closed at 4841 at the end of week. Good results from Engro, PSO and FFC kept the sentiments positive. PSO announced 70% and FFC 15% final dividend. The index is expected to continue gains at the back of forthcoming corporate results. It is going to be a long week end due to Eid holidays. All eyes are set at the date for public subscription of SSGC shares under the GoP's privatization/divestment plan. Further impetus has been provided by over five times subscription of Pakistan Capital Market Fund by Arif Habib Investment.

 

 

 

 

ENGRO CHEMICAL PAKISTAN

The company has released its annual accounts and also announced payment of 35% final dividend. This beings the cumulative cash dividend for the year 2003 to 80% as against a payout of 75% last year. During the year the company improved its past highest production mark by producing 955,000 tonnes of urea and also set a new record level of sales at 930,000 tonnes. This also improved company's market share in urea sales to 21%. During the year the full impact of major investment made in the recent past enhanced urea production, plant efficiency and energy conservation. The gas utilization improved significantly by 6% and recorded the best ever gas efficiency index per unit of urea produced. The increase in earning after tax of 37% compared to year 2002 is attributable to all time record production and sales of urea, timely purchase of DAP imports, gas utilization efficiencies, higher dividend from its subsidiaries, lower financial charges and reduction in losses from NPK business. The gains were partially offset by gas price increase. However, it is worth mentioning that price of urea remained stable during the year. The domestic price at year end at Rs 415/bag was Rs 260/bag lower than imported product despite increase in cost of gas.

FAUJI FERTILIZER COMPANY

According to equities analysts the company's profit after tax is expected to be close to or slightly below 2002, even with higher available capacity owing to an end to subsidy on feedstock from April 2003. According to Khaid Iqbal of InvestCap, fourth quarter earnings of the company are expected to be higher at the back of higher urea and DAP sales. Also, for the second half of 2003 company's financial charges are expected to be lower due to rescheduling of Pak Saudi acquisition-related debt. Analysts forecast for over Rs 3 billion profit after tax for the full year. The company is expected to declare minimum 95% or as high as 100% dividend for the full year. The company has already paid 85% dividend during first nine months.

FIRST EQUITY MODARABA

The Modaraba has posted over Rs 64 million profit for July-December period of year 2003 as compared to Rs 32 million profit for the corresponding period of last year. As a result, EPS per certificates improved from Rs 1.29 to Rs 2.48. The increase in profit can be attributed to the growth in income, going up from Rs 38.6 million to Rs 78 million. However, operating expenses also went up from Rs 6 million to around Rs 10 million.

AL-ZAMIN LEASING MODARABA

The Karachi Stock Exchange has approved listing of TFC's of the Modaraba and trading has commenced from January 26, 2004. The delivery will take place between the members directly as per the Rules and Regulations governing 'Spot' transaction. The TFCs have been termed eligible security and all the transactions will be settled through CDS of Central Depository Company.

TRUST LEASING CORPORATION

The company has posted Rs 79 million profit after tax for July-December period of year 2003 as against Rs 16.6 million profit for the corresponding period of last year. As a result, EPS improved from Rs 0.74 to Rs 3.07. The quantum jump in profit is attributable to increase in income and no provision for diminution in value investment in shares. Income grew from Rs 78 million to Rs 127 million. Expenditure also went up from Rs 34 million to Rs 45 million. The company did make any provision for diminution value of shares for the period under review, whereas a provision of Rs 25 million was made during the corresponding period of year 2002. However, the Board of Directors preferred to abstain from approving distribution of any interim dividend among the shareholders.

PACKAGES

The company has posted Rs 813.5 million profit for the year ending December 31, 2003 as compared to Rs 655.4 million profit for last year. The Board of Directors also approved distribution of 85% dividend among the shareholders. The company had paid 70% dividend for the year 2002. Net sales went up from Rs 4,622 million to Rs 5,436 million. Cost of goods sold grew from Rs 3,672 million to Rs 4,242 million. As a result gross profit improved from Rs 949.6 million to Rs 1,193.7 million. Reduction in financial and other charges, going down from Rs 240 million to Rs 221 million, also contributed towards improvement in bottom line.

Company High  Low Closing Week's Turnover

P.T.C.L.A XD

38.75

37.45

38.75

133,684,500.

Oil & Gas Dev. C

53.85

50.95

53.75

76,837.4

Hub Power

38.90

38.45

38.90

55,647,500

National Bank

58.85

56.65

58.85

49,046,900

P.S.O

287.65

279.50

287.65

46,948,500

Sui North Gas XD

56.15

53.00

56.15

45,032,500

Engro Chem

99.55

96.60

97.35

36,495,000

Sui South Gas

32.70

31.60

32.70

36,459,000

Fauji Fert.

106.75

99.40

106.75

33,475.400

M.C.B. XD

54.25

52.7

54.15

17,095,100