STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated February  21, 2004

 

At the end of the week the market closed around the closing of last week. The point worth noting is that the KSE-100 index touched high of 4931 and low of 4813 during the week. Apparently intra day high volatility was due to the factors having no bearing on the economic fundamentals. Financial results of companies have started poring in but the market is expected to remain subdued till applicants of SSGC get the refunds.

 

 

 

 

SUI SOUTHERN GAS COMPANY

The subscription received against offer of shares of SSGC to general public under GoP's divestment plan has broken all the previous records. More than 250,000 applications have been received amounting to over Rs 1.3 billion or 15 times the number of shares offered. The response from small investors, particularly from applicants for 1,000 shares was enormous. The highest ever number of applications received earlier was 97,570 for the initial public offer of OGDC.

MUSLIM COMMERCIAL BANK

The bank has released its financial results for the year ending December 31, 2003. The bank has posted Rs 2,230 million profit tax for the year under review as compared to Rs 1,739 million last year. Shareholders' equity grew from Rs 6,3214 million to Rs 7,726 million. The Board of Directors approved issue of 10% Bonus Shares at the time of approval of accounts. The bank has already distributed first interim dividend of 15% in April and second interim dividend of 12.5% in October 2003. The bank has further consolidated its position. Deposits grew from Rs 182,706 million to Rs 211,511 million. Earnings assets went up from Rs 205,226 million to Rs 237,378 million.

UNION BANK

The shareholders of the bank will get a return on their investment in the bank after four years. The Board of Directors has approved distribution of 10% dividend and issue of 10% Bonus Shares on the basis of financial results for the year ending December 31, 2003. The bank has consolidated its position evident from various indicators. The bank has posted Rs 428 million profit after tax as compared to Rs 163 million for the year 2002. The growth in profit was despite writing-off all the intangible costs of Bank of America, Emirates Bank, American Express Bank and Mashreq Bank's franchise in Sri Lanka acquisitions amounting to Rs 691 million during the year. The strong performance shows that strategy initiated by the bank four years back is yielding positive results.

BOLAN BANK

Iqbal Alimohamed and his two sons made public announcement to acquire 51% shares of Bolan Bank. They have already obtained approval for acquisition of 51% shares of the bank from State Bank of Pakistan. The acquirers have provided a Security Bond to the Offer Manager, AKD Securities, and firm financial arrangements for fulfillment of the obligations under the Public Offer. The offer price by the acquirers to the minority shareholders, desirous to dispose their shares, was Rs 14.00 per share and was valid till February 21, 2004.

BESTWAY CEMENT

The company has posted Rs 236 million profit after tax for July-December 2003 period as compared to Rs 76 million profit for the corresponding half of year 2002. The EPS improved from Rs 0.39 to Rs 1.22. However, the Board of Directors preferred to skip distribution among the shareholders. The increase in profit can be attributed to higher capacity utilization and despatches. Production of cement went up from 393,334 tonnes to 503,641 tonnes. Production of clinker also went up from 374,451 tonnes to 447,943 tonnes. Despatches increased from 371,396 tonnes to 467,465 tonnes. As a result net sales stood at Rs 1,187 million in the half year as compared to Rs 860 million in the corresponding period of last year. The decline in financial charges declined by 45%, from Rs 139 million to Rs 77 million.

 

 

LEGLER-NAFEES DENIM MILLS

The company has posted Rs 95 million profit after tax for the year ending September 30, 2003 as compared to Rs 49 million profit for the last year, a 100% growth. EPS improved from Rs 0.56 to Rs 1.10. However, no announcement was made regarding distribution of dividend at the time of release of financial results. The growth in profit can be attributed to a number of factors that include, increase in sales and decrease in operating expenses and financial charges. Nearly 100% growth in other income, going up from Rs 68 million to Rs 132 million, further improved the bottom line.

AL-QAIM TEXTILE MILLS

The year ending September 31, 2003 has added to accumulated losses of the company, exceeding Rs 280 million at the time of preparation of the balance sheet. Though, there was increase in sales but the hike in cost of goods sold led to about Rs 10 million gross loss as against over Rs 11 million gross profit for the year 2002. However, the adverse impact of hike in cost of goods sold was reduced due to lower financial charges, going down from Rs 10.7 million to Rs 6.8 million.

Company High  Low Closing Week's Turnover

P.T.C.L.A XD

40.05

39.30

39.65

274,476,000

Oil&Gas Dev.XD

52.25

51.15

51.15

107,078,000

Sui North Gas

57.90

56.50

56.50

75,482,000

Sui South Gas

34.90

34.10

34.10

66,102,500

Hub Power

39.30

38.95

38.95

57,123,500

M.C.B.XD

51.60

50.60

50.60

20,533,300

National Bank

57.40

56.90

57.15

19,829,200

Union Bank

23.80

21.55

23.80

8,664,500

Askari Bank

55.05

53.85

53.85

1,801,500

PICIC Bank

43.10

42.35

42.55

1,543,500