STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated February  14, 2004

 

As usual intra day movement of the KSE-100 index remained full of surges. Due to exceptional prices movement of some of the scrips caps were common. Special interest in banking sector was evident due to earnings expectations. Prices of automobile scrips came under after the announcement regarding reduction in duty and permission for import of second hand cars. However, some analysts believe that market had over reacted to the announcement. The over all outlook for the market continues to remain positive.

 

 

 

 

Callmate Telips Telecom plans to go for initial public offer (IPO) worth Rs 150 million out of a total paid-up capital of Rs 500 million. The IPO is expected in March this year. The company is among the pioneers of payphones and pre-paid calling cards business in the country. The advisor and arranger to the issue is ADK Securities. The issued is underwritten by AKD Securities and Bank Alfalah.

According to some reports Askari Commercial Bank and Kuwait Bank are separately negotiating with the State Bank of Pakistan to acquire 51% shares of Allied Bank of Pakistan. The central bank wants the interested parties to immediately inject Rs 7 billion equity to clean up accumulated losses. Instead of Privatization Commission, the central bank is negotiating with the local banks for the sale of ABL. Earlier 49% shares of ABL were sold to Employees. However, later on ABL ran into serious problems leading huge accumulated losses.

The commercial banking sector is in the limelight due to earnings expectations for the year ending December 31, 2003. The year has been a challenging period for the banking sector in general as they have to constantly review and redesign their marketing strategy to utilize the excess liquidity. The banks also took the best advantage of vibrant equities market.

PICIC COMMERCIAL BANK

The bank took the lead in announcing the full year financial results. During the period under review the bank posted a record profit after tax of Rs 621 million, a 97 increase as compared to last year. The bank had already distributed 15% interim dividend and with the release of full year results also announced 30% Bonus Shares and 40% Rights issue. Bulk of the income was generated due to an escalation in interest income, which was fully complimented thRough capital gains and dividend income.

ASKARI COMMERCIAL BANK

The bank has produced a spectacular performance for the year 2003 with better than expected results, posting over one billion profit after tax. This led to an earning per share of Rs 9.66, a 61% increase over last year. A large portion of its earnings have been derived from core interest income. Additionally, a substantial amount of income was generated from fees, commission and brokerage that contributed towards improving bottom line. The Board of Directors have approved distribution of 20% dividend as well as issue of 10% Bonus Shares.

SUI SOUTHERN GAS COMPANY

The subscription under the GoP's divestment plan has received overwhelming response. The keen interest of investors was mainly due to the scrip being quoted around Rs 33/share at the time of subscription. It is also attributed to the fact that all those who missed the opportunity to acquire OGDC shares took all the measures to qualify under the plan for allocation of shares. The immediate feed back was that over 100,000 applications have been submitted and most of these were for 1000 shares. The submission of such large number of applications for 1000 shares was the announcement that all the applicants for 1000 shares were guaranteed allocations.

MEEZAN ISLAMIC FUND

The newly launched fund has posted a total income of Rs 114.7 million for August-December 2003 period. After taking into account expenses of Rs 108 million, the net income for the period stood at Rs 103.9 million, which translated into earnings per unit of Rs 5.89. During the period under review units were Rs 1,014 million were issued and units worth Rs 129.5 million were redeemed. the average net assets of the fund for the period under review were Rs 720 million, whereas net assets as on December 31, 2003 stood at Rs 988.65 million.

NATIONAL REFINERY

The refinery has posted Rs 838 million profit after tax for July-December 2003 period, registering 72% growth over the corresponding period of last year. The Board of Directors also approved distribution of 25% interim dividend among the shareholders. According to Murad Ansari of KASB Securities, the refinery enjoys an edge over PRL and ARL due to lub refining. This allows NRL to absorb any extra availability of furnace oil as it is being used for manufacturing of lubricants. Despite lower demand for furnace oil NRL succeeded in increasing sales from Rs 16,629 million to Rs 18,775 million. The sales spurt can also be attributed to the increase in prices of HSD, motor gasoline and kerosene.

 

 

Company High  Low Closing Week's Turnover

Oil&Gas Dev.

53.75

51.95

52.45

179,144,700

P.T.C.L.A

39.35

38.60

39.35

154,398,000

Sui South Gas

34.30

32.90

34.20

128,895,000

Hub Power

40.05

39.30

39.55

126,004,000

P.S.O.

290.00

282.50

290.00

49,859,300

Sui North Gas

56.65

53.90

56.65

44,919,500

National Bank

58.95

56.65

57.80

39,096,000

M.C.B.

55.60

52.75

53.60

36,303,400

Dewan Motors

39.15

34.95

34.95

21,726,500

Askari Bank

56.85

53.20

56.00

10,388,500