STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Apr 10, 2004

 

The Governing Board of Directors of Karachi Stock Exchange in its meeting held on March 29, 2004 reviewed and approved re-composition of the KSE-100 index. The revised index includes selection of companies from 34 sectors (excluding open-end Mutual Fund) against the earlier 27 sectors. The revised index has become effective from April 01, 2004. The recomposed index, based on the prices of February 27, 2004, captures the market capitalization to the extent of 88% of the total market capitalization.

 

 

 

 

At the end of the week the KSE-100 index closed at a new high level of 5430 and market capitalization touched Rs 1.5 trillion level. The scrips registering significant gains were NBP, OGDC and SSGC. The interest in selected cement scrips also remained high. Now market punters are hinting that the index may even breach 6000 level before end of the current financial year. However, they do not rule out technical correction, which has become over due. Some of the analysts have put a blanket recommendation, "Sell if the index hovers between 5500-5800 mark and buy when it moves in 4750-5000 range." However, No one seems to be comfortable in predicting the future direction of the market but all recommend avoiding long positions.

RECKITT BENCKISER PAKISTAN

The company has posted Rs 124 million profit after tax for the year ending December 31, 2003 as compared to Rs 166 million profit for last year. EPS came down from Rs 5.18 to Rs 3.88. The Board of Directors of the company decided not to distribute any dividend among the shareholders. A Rs 2.50 per share dividend was paid for the year 2002 that amounted to slightly more than Rs 80 million. Despite improvement in gross profit, net profit declined due to hike in selling and administrative expenses. Sales went up from Rs 2,502 million to Rs 2,890 million. Gross profit improved from Rs 933 million to Rs 1,034 million. The hike in selling and administrative expenses, going up from Rs 659 million to Rs 885 million completely eroded the benefit of improvement in gross profit. However, the management was able to bring down financial and other charges from Rs 37.6 million to Rs 22.5 million, may be only due to the declining trend in interest rates.

HINOPAK MOTORS

The company has posted Rs 352 million profit after tax for the year ending December 31, 2003 as compared to Rs 439 million profit for the last year. EPS came down from Rs 35.43 to Rs 28.40. The Board of Directors also approved distribution of Rs 8.5 per share dividend. The company has paid one rupee per share dividend for the year 2002. The decline in profit can be attributed to hike in cost of goods sold and selling and administrative expenses. Sales grew from Rs 3,078 million to Rs 4,281 million. As against this, cost of goods sold went up from Rs 2,452 million to Rs 3,478 million. Selling and administrative expenses hiked from Rs 143 million to Rs 236 million.

MASOOD TEXTILE MILLS

The Board of Directors of the company has decided to issue one Right Share for every two shares held (50%) at a premium of Rs 10 per share. Share Transfer Books of the company will remain closed from April 16 to 22, 2004 to determine the Right entitlement. Transferred received at the Registered Office at the close of business on April 15, 2004 will be treated in time for the purpose of entitlement to Right Shares to the transferees. According to the certificate issued by the Auditors of the company, the free reserves of the company are Rs 230.849 million as on September 30, 2004. This comprises of Rs 214.5 million Revenue Reserve (General) and Rs 16.349 million accumulated profit. The company has a paid-up capital of Rs 200 million and shareholders equity of Rs 430.849 million. The free reserve per share comes to Rs 11.54.

 

 

MACPAC FILMS

The Karachi Stock Exchange has approved the application for formal listing and quotation of shares. Trading in the shares of the company on the exchange has started from April 02, 2004. The company is being quoted under miscellaneous sector of the Ready Board Quotation of the exchange. All transactions taking place in the shares of the company are being routed through the Clearing House on T+3 settlement basis. The CDC has already declared the shares of the company eligible security. Noble Computer Services has been appointed as Share Registrar of the company.

NDLC-IFIC BANK

The State Bank of Pakistan has sanctioned the scheme of Amalgamation of NDLC-IFIC Bank (NIB) and the Pakistan branches of Credit Agricole Indosuez (CAI) on March 29, 2004. Under the Scheme of Amalgamation the entire undertaking of CAI, including all properties, assets and liabilities and all the rights and obligations of CAI as of the effective date shall stand amalgamated with and vest in NIB. The Scheme of Amalgamation has to be completed within 30 days from March 29, 2004.