STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated June 26, 2004

 

Both the daily trading volume and the KSE-100 index registered substantial decline at the back of mounting political uncertainty and fear of imposition of CVT and other taxes. Though, the GoP has agreed to bring down the rate, it is certain that now speculators have to pay tax on each transaction. The modalities are still being worked out. These taxes will become effective from first of July 2004.
Though, the transaction cost will increase and will also affect the daily trading volume, corporate earnings are expected to improve. Political

 

 

 

 

uncertainty will  continue to press the investors from taking long positions. The imposition of CVT etc. is also expected to affect the public response to forthcoming offer of shares of PPL and Kot Addu Power Company. Saying this many analysts are of the view that these companies enjoy enormous upside potential and imposition of tax may not affect the sentiments adversely.

KHAIRPUR SUGAR MILLS

The company has posted Rs 4 million profit before tax for the first half of current financial as against Rs 1.3 million loss for the corresponding period of last year. This reversal of fortune can only be attributed to reduction in financial charges. Sales came down from Rs 376 million to Rs 302 million. Gross profit dipped from Rs 42 million to Rs 19.8 million. The management succeeded in bringing down financial charges, going down from Rs 29.3 million to slightly less than Rs 3 million.

UNITED SUGAR MILLS

The company has posted Rs 5.7 million profit after tax for the first half of current financial year as against Rs 53.6 million profit for the corresponding period of last year. This reversal of fortune can only be attributed to hike in cost of goods sold. Sales grew marginally from Rs 475.7 million to Rs 480.8 million. As against this cost of goods sold hiked from Rs 377.2 million to Rs 409.2 million. Gross profit came down from Rs 98.5 million to Rs 71.6 million. Operating expenses went up from Rs 6.8 million to Rs 13.3 million. However, reduction in financial charges, going down from Rs 27.6 million to Rs 20.3 million, helped in containing further erosion of profit. However, a cause of serious concern is huge accumulated losses touching Rs 354 million as on March 31, 2004.

KOHINOOR SPINNING MILLS

The company has posted Rs 25 million loss after tax for the first half of current financial year as compared to Rs 85 million loss for the corresponding period of last year. This reversal in fortune can be attributed to higher gross profit and lower financial charges. Gross profit improved due to increase in sales, going up from Rs 865 million to Rs 1,116 million. Gross profit went up from Rs 23.6 million to Rs 65.7 million. Financial charges declined from Rs 61.6 million to Rs 34 million. However, the real cause of concern is accumulated losses touching almost Rs 939 million as on March 31, 2004.

COLONY TEXTILE MILLS

Despite growth in sales profit after tax has reduced by about 50%. The company has posted Rs 6.8 million profit after tax for the first half of current financial year as against Rs 14.2 million for the corresponding period of last year. Sales grew from Rs 898 million to Rs 1, 562 million. As against this cost of goods sold went up from Rs 789 million to Rs 1,487 million. Management succeeded in bringing down financial and other charges from Rs 80 million to Rs 55 million. Operating expenses went up from Rs 14.3 million to Rs 22.7 million. Even the hike in other income, from Rs 3.9 million to Rs 18.2 million, could not help in containing the decline in profit.

GULISTAN TEXTILE MILLS

The company has posted Rs 59.8 million profit after tax for the first half of current financial year as against Rs 11.8 million loss for the corresponding period of last year. This reversal of fortune can be attributed to improvement in gross profit and reduction in financial charges. Sales went up from Rs 1,497.7 million to Rs 1,728.3 million. Gross profit improved from Rs 161.9 million to Rs 194.2 million. Financial charges came down from Rs 134.2 million to slightly more than Rs 105 million.

SAPPHIRE TEXTILE MILLS

The company has posted Rs 78.5 million profit after tax for the first half of current financial year as compared to Rs 98.5 million profit for the corresponding period of last year. Despite growth in sales, the company has recorded a decline in profit after tax. This decline can be attributed to hike in cost of goods sold and operating expenses. Even the reduction in financial and other charges could not contain erosion in profit. Sales went up from Rs 2,721.6 million to Rs 3,639.8 million. As against this cost of goods hiked from Rs 2,474 million to Rs 3,424 million. Gross profit came down from Rs 247.7 million to Rs 216.3 million. Operating expenses went up from Rs 31.5 million to Rs 35.8 million. The management succeeded in bringing down financial charges from Rs 95.6 million to slightly less than Rs 66 million.

 

 

Company High  Low Closing Week's Turnover

Oil & Gas Dev. XD

62.45

61.65

61.65

122,003,700

P.T.C.L.A

41.95

41.00

41.60

102,435,000

National Bank

64.20

61.75

63.35

74,210,100

Fauji Fert Bin

18.35

17.85

18.35

40,777,500

Hub Power

31.70

31.10

31.10

29,612,500

M.C.B.XD

49.25

47.65

48.05

28,006,000

Dewan Salman

22.35

21.35

22.35

27,328,500

I.C.I.

86.65

84.35

85.70

23,963,700

Pak.PTA Ltd.

16.45

15.70

16.05

12,318,500

Fauji Fert.XD

119.50

116.401

116.70

2,582,200