STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated May 08, 2004

 

The market has remained directionless over the last two weeks. Intra day movement of the KSE-100 remained highly volatile. Badla investment as well as rates are still higher as compared to historic average. Despite most of the companies posting better than last year results, investors' response was lukewarm. The messages were 'avoid taking long positions and book profit on the first available opportunity'.
As regards offer of shares PIA and PPL it is anybody's guess. The general perception is that if the Commission wishes to get overwhelming response,

 

 

 

 

PPL is a better bet. PIA has not paid any dividend for quite some time and if it does not pay any dividend for the year 2004, its name may be moved to defaulters counter. It is yet to be seen how the management responds?

MUSLIM COMMERCIAL BANK

The bank has posted Rs 647 million profit after tax for Jan-March 2004 quarter as compared to Rs 743 million profit for the corresponding period of last year. Despite posting 13% lower profit the Board of Directors approved distribution of 10% interim dividend. The results reflected a decline in mark-up income by 35%, a fall from Rs 3.4 billion to Rs 2.2 billion. Likewise non-mark-up income went down from Rs 1.46 billion to Rs 894 million. It is also believed that the bank also off-loaded some of its investment in equities to match the specified limit set by the central bank. The bank is expected to perform better in the day to come due to constant improvement in customer services and product development process. Its lending is expected to increase due to focused attention and entry in Mutual Funds business.

ADAMJEE INSURANCE COMPANY

After a much awaited announcement of year 2003 results, the company has released Jan-March 2004 quarter results. The company has posted Rs 78 million net profit for the quarter under review as compared to Rs 102 million profit for the corresponding period of last year, showing a decline of 23%. The revenue of the company increased by 15%, from Rs 708 million to Rs 820 million. However, the net underwriting results showed a decline of 29%. This decline can be attributed to higher claims in the motor insurance segment, which has a 53% contribution in total revenue. The company has taken focused more on marine insurance business indicating an increase of 29%, going up from Rs 113 million to Rs 147 million.

PAKISTAN OILFIELDS

The company has posted Rs 568 million net profit for Jan-March 2004 quarter as compared to Rs 739 million profit for the corresponding period of last year, a decline of 23% on quarter to quarter basis. Similarly, nine-month results portrayed a decline of 12% mainly due to upsurge in exploration cost by 165%. Net sales for the quarter under review came down from Rs 1.76 billion to Rs 1.73 billion due to decline in production of crude oil, gas and LPG. However, nine-month sales perked up to Rs 5.05 billion compared to Rs 4.9 billion during the corresponding period of last financial year.

FAUJI FERTILIZER BIN QASIM

The company has posted Rs 111 million profit after tax for Jan-March 2004 quarter as against Rs 198 million loss for the corresponding period of last year. The complete reversal of fortune can only be attributed to quantum jump in sales, going up from Rs 306 million to Rs 1,447 million. The growth in sales was due to operating DAP plant at the optimum capacity. Gross profit jumped from Rs 33 million to Rs 332 million. The hike in gross profit was more than sufficient to absorb higher operating expenses. The increase in other income and decrease in financial charges further helped in improving the bottom line. Operating expenses went up from Rs 80 million to Rs 172 million. Financial charges came down from Rs 57 million to Rs 17 million.

ATTOCK CEMENT

The company has posted Rs 293.5 million profit before tax for Jan-March 2004 quarter as compared to Rs 150.4 million profit for the corresponding period of last year. EPS improved from Rs 1.48 to Rs 2.69. The improved profit can be attributed to higher sales and better control on cost of goods sold. Sales went up from Rs 1,080 million to Rs 1,266 million. As against this cost of goods sold grew from Rs 884 million to Rs 899 million. However, higher provision for tax, going up from Rs 43.4 million to Rs 106.4 million eroded the benefit of improvement in gross profit.

SUZUKI MOTOR COMPANY

The company has posted Rs 324.2 million profit after tax for Jan-March 2004 quarter as compared to Rs 384.7 million profit for the corresponding period of last year. Despite higher sales gross profit came down due to hike in cost of goods sold. Sales grew from Rs 4,095 million to Rs 5.309 million. As against this cost of goods sold went up from Rs 3,456 million to Rs 4,745 million. Other income came down from Rs 52 million Rs 25.5 million. However, the decline in financial charges contained further erosion of bottom line.

 

 

Company High  Low Closing Week's Turnover

Oil&Gas Dev.

69.40

68.65

69.40

229,589,300

P.T.C.L.A XD

45.30

44.55

44.55

170,244,000

Fauji Fert Bin

22.25

21.45

21.60

122,130,000

D.G.K.Cement

59.90

59.25

59.90

108,350,000

Chakwal Cement

9.30

8.30

9.05

87,604,000

Hub Power

35.40

34.40

34.60

77,812,000

M.C.B. XB

58.90

57.85

57.85

75,696,800

Dewan Salman

26.15

25.25

26.10

46,262,000

Adamjee Ins

117.00

112.65

114.30

37,443,100

P.S.O.

271.65

270.00

270.75

10,751,900