STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated May 29, 2004

 

On May 26, 2004 Shaukat Aziz, Minister for Finance & Economic Affairs visited the Karachi Stock Exchange. At the briefing, the Minister was very jubilant and lucid. He drives great pleasure in talking about the revival of the economy as well as the KSE-100 index attaining new heights. In this endeavour he is fully supported by Moin Fudda, Managing Director, Karachi Stock Exchange. Moin Fudda wishes that the index cross 6,000 level as quickly as possible.

 

 

 

 

There were expectations that the index would cross the 6,000 level much before the announcement of Federal Budget for 2004-05. However, keeping in view the index movement achieving this mark remains unpredictable. According to a gossip floating in Karachi Stock Exchange, the destination of index has become unpredictable because of the split. While some of the market leaders are making the best effort to push the index up, others continue to derail its movement. It may be for the first time that broker fraternity looks divided.

The GoP's strategy to divest part of its holding in the state-owned enterprises has lured a number of novice investors to actively participate in the public offerings. The number of applications received against public offer of Bank Alfalah was as high as 370,00 and it surpassed the record created by SSGC. It is interesting to note that the new breed of investors prefers in deal in paperless environment. This is evident from the record increase in number of Investor Accounts being maintained with the Central Depository Company (CDC). According to the information recently released by the CDC the number has exceeded 13,000 mark and is still advancing. However, it is also believed that the increase in such accounts is mainly due to those who wish to make a quick buck.

TRUST COMMERCIAL BANK

Trust Commercial Bank (TCB) has emerged as a result of amalgamation of Trust Investment Bank (TIB), Fidelity Investment Bank (FIB) and Pakistan operations of Doha Bank. The scheme of amalgamation has been approved by the State Bank of Pakistan. This will bring the total number of listed commercial banks to nineteen as Bank Alfalah has been listed already and its shares have been offered to general public.

THE RESOURCE GROUP

The TRG, a leading IT-enabled services company has announced the acquisition of a leading provider of customer care and marketing services to Global 1000 companies in North America and Europe. This acquired company having its headquarters at Maryland (USA) has two contact center facilities in the United States as well as one facility each in Canada and the United Kingdom. Over the last twelve months the acquired company has recorded revenues of over US$40 million. The selected clients include Audi, BMW, Honda and Volkswagen.

 

 

KOHINOOR TEXTILE MILLS

The half yearly results of the company come as a pleasant surprise. The company has posted Rs 233.8 million profit after tax for the first half of current financial year as compared to Rs 32.4 million profit for the corresponding period of last year. EPS jumped from Rs 0.40 to Rs 2.92. The improvement in bottom line can be attributed to growth in sales and better cost controls. Sales went up from Rs 2,459 million to Rs 2,740 million. As against cost of goods sold went up from Rs 2,138 million to Rs 2.283 million. This resulted in hike in gross profit from Rs 320 million to Rs 457 million. Yet another contributor towards improved profit was the reduction in financial charges, going down from Rs 165 million to Rs 97 million.

NISHAT MILLS

Despite the decline in gross profit for the first half of current financial year, the company has posted higher profit as compared to corresponding period of last year. Sales went up from Rs 6,732 million to Rs 7,148 million. As against this cost of goods sold hiked from Rs 5,736 million to Rs 6,238 million. Operating expenses also went up from Rs 393 million to Rs 437 million. However, the reduction in financial enables the company to post higher profit. Financial charges came down from Rs 381 million to Rs 221 million. As a result profit after tax improved from Rs 224 million to Rs 300 million and EPS went up from Rs 1.83 to Rs 2.45.

NISHAT (CHUNIAN)

The company has posted Rs 241 million profit after tax for the first half of current financial as against Rs 147 million for the corresponding period of last year. Improvement in profit can be attributed to increase in sales, decrease in operating expenses and financial charges. Sales went up from Rs 2,037 million to Rs 3,074 million. Gross profit grew from Rs 363 million to Rs 406 million. Operating expenses came down from Rs 126 million to Rs 87 million. Financial charges came down from Rs 78 million to Rs 37 million. As a result EPS improved from Rs 3.26 to Rs 5.35.

Company High  Low Closing Week's Turnover

Sui North Gas

70.80

69.50

70.60

100,957,000

Nishat Mills

55.70

54.00

55.70

82,582,500

P.T.C.L.A

43.35

43.10

43.10

72,966,500

Sui South Gas

35.50

35.00

35.10

57,844,500

National Bank

68.65

68.00

68.20

50,326,100

M.C.B. XB

57.25

56.40

57.15

50,198,800

Oil&Gas Dev.

68.95

67.90

68.95

32,199,800

Adamjee Ins.

94.95

92.60

94.75

23,840,700

TRG Pakistan

28.40

26.75

28.40

6,419,500

Gadoon Tex.

66.00

57.50

66.00

308,000