STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated July 17, 2004

 

After the announcement of dividend by NIT, exceptional interest of investors was visible in scrips belonging to banking sector. Two of the mutual funds managed by the House of Arif Habib also posted good results. A point worth noting was that interim dividend was announced no sooner did the next financial year started. This announcement has set a new trend in Pakistan's equities market where most of the sponsors do not wish to pay any dividend or even if they pay, the payout is very low. According to an analyst the key reason for not paying dividend, despite posting millions of rupees profit, is poor cash flow.

 

 

 

 

As regards the overall behaviour of the market, it continued to suffer from absence of positive news. The COT volume and rate continue to swell. Further fall in price of PIA shares seems to have been contained by delay in dispatch of its physical shares. The KSE has notified the names and codes of 18 bankers to initial public offer for Pakistan Petroleum. Two names, Askari Commercial Bank and Union Bank, were conspicuous by their absence. The exchange has also issued clarification repeatedly regarding national identity cards.

PICIC

Pakistan Credit Rating Agency (PACRA) has upgraded the long-term rating of Pakistan Industrial Credit & Investment Corporation (PICIC) to 'AA' (Double A). The short-term rating has been maintained at 'A1+' (A one plus). These ratings denote a very strong capacity for timely payment of financial commitments and are applicable to the senior unsecured creditors of the corporation. PICIC's rating reflects potential benefits arising from the diversification strategy to increase its income from stable sources. A sizable contribution to income, in medium term, is expected to come from capital market operations and the settlement of chronic default cases. The rating also recognizes that although income from capital market activity will remain vulnerable to volatility risk emanating from fluctuations in the stock market, PICIC has instituted appropriate preemptive risk management policies that effectively contain its market risk. The ratings are further backed by the continuing enhancement in the risk absorption capacity reflected in the expanding equity base of the corporation and the expected satisfactory settlement of delinquent loans.

PAK SUZUKI

The company enjoys the largest market share, producing almost 50% of the total vehicles assembled in the country. The company captures around 70% market share of 800cc to 1000cc cars. Like all other auto companies, Pak Suzuki witnessed magnificent growth during Jan-March period of 2004. Higher sales were on the back of continued increase in demand and aggressive marketing of auto loans. Future sales are expected to grow but at a lower rate. The company is not expected to witness any drastic reduction in sales or margins, being the producer of cars enjoying preference of buyers till the imported CBUs attain greater acceptance in the local market.

PAKISTAN CAPITAL MARKET FUND

The Board of Directors of Arif Habib Investment Management (Investment Advisor) of Pakistan Capital Market Fund (PCM) in their meeting approved dividend at Rs 0.825 per certificate (8.25%) for the period from November 04, 2003 to June 30, 2004. The total income of PCM amounted to Rs 154 million, out of this Rs 114.751 million was from capital gain on sale of investment. Total expenditure amounted to Rs 27 million, out of this Rs 19.554 was paid to the Investment Advisor and Rs 2.691 million went towards brokerage charges.

PAKISTAN PREMIER FUND

The Board of Directors of Fund approved increase in authorize capital to facilitate issue of 50% Right Shares at a premium of Rs 2 per share. The Fund having already distributed an interim dividend of 12.5% for the year 2003-04 proposed issue of 25% Bonus Shares and 15% interim cash dividend for the financial year 2004-05. The net income of the Fund for the year 2003-04 amounted to about Rs 446 million as compared to an income of approximately Rs 337 million. Income went up from Rs 350 million to Rs 471 million. This increase came from increase in capital gains going up from Rs 175 million to Rs 319 million. Dividend income went up from Rs 31 million to Rs 48 million.

BOSICOR

The Board of Directors of the Company has approved balancing, modernization, debottlenecking and debt restructuring plan. This includes enhancement of capacity of the existing crude oil refining and addition of units to increase value added products by adding pre-flash unit, a new crude oil furnace and associated equipment. The debt-restructuring includes reduction of debt burden and strengthen the equity base. The fund raising through debt restructuring through Rights Issue will enable the company to implement BMR plan. Keeping in view the quoted price of the share the Rights Issue is expected to be fully subscribed.

 

 

Company High  Low Closing Week's Turnover

B.O.Punjab

66.60

64.20

66.00

191,385,500

D.G.K.Cement

60.15

57.30

57.30

139,279,300

National Bank

71.80

71.30

71.80

110,113,600

Oil&Gas Dev.

67.40

66.05

66.05

102,756,900

P.T.C.L.A

43.95

43.15

43.15

67,148,500

Fauji Fert Bin

19.10

18.75

18.75

46,480,500

Sui South Gas

33.20

32.35

32.35

36,729,000

Hub Power

32.20

31.55

31.55

35,932,000

Bank Alfalah Lt

52.80

47.10

47.10

6,977,800

Pak.PTA Ltd.

16.80

15.90

15.90

5,664,000