STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated July 24, 2004

 

Entry of KASBDirect increases the total number of companies offering online trading of stocks to more than half a dozen. Though, it was considered to be a late entrant by some, it has definitely come up with better options for the investors. It may be worth noting that the total amount of trades executed on akdtrade, since commencement of operations, have already exceeded Rs 120 billion. Though, online trade still constitute a small percentage of average daily trade volume, the point to be noted is quantum jump in volume of online trade. Both KSE and CDC have been playing the key role in changing trading habits and gradual shift to paperless environment.

 

 

 

 

The divestment programme being followed by the GoP is has been labeled 'Privatization for People'. It draws credibility from active participation of general public in the recent initial public offer (IPO) and public offer (PO) of shares of state-owned enterprises. A record number of applications were received against offer of ODGC shares but SSGC surpassed the milestone. Applications received against IPO of Bank Alfalah created yet another record, but PPL is expected to set a record, which may not be easy to break.

PAKISTAN PETROLEUM

The paid up capital of company is split in over 685 million shares. Out of this 10% or slightly more than 68.5 million shares are being offered with a greenshoe option of anther 5% (making the total offer above 102,8 million shares). The GoP has also announced to give first preference to applicants of 500 shares. Since the offer is expected to be oversubscribed it may be of some interest to look at the number of successful applicants. Assuming that the Privatization Commission exercises the greenshoe option and all the applications are for 500 shares, the total number of successful applicants will be 205,750. Though, the details are not available, it is expected that around 500,000 applications have been received. Therefore, one out of two applicants will, most probably, emerge as successful applicant.

FIRST EQUITY MODARABA

The Modaraba is expected to announce its financial results shortly. According to a report from Capital One Equities, the Modaraba is expected to far better results as compared to last year. An announcement of cash payout ranging between Rs 3.5 Rs 4.0 cannot be ruled out. The major contributors towards this earnings are likely to be gain on sale of investment, commission and fees, brokerage commission and others that have already improved by manifold and under the existing market conditions, would continue to boost the income base of the Modaraba.

INTERNATIONAL GENERAL INSURANCE

The Board of Directors of the company have approved of the acquisition by the company of the general insurance portfolio of the Pakistan Branch of Royal & Sun Alliance Insurance (R&SA). The Pakistan Branch of R&SA, which carries on general insurance business, has been in operation in Pakistan since Independence, and includes the general insurance business in Pakistan of Royal Exchange Assurance, which it acquired in August 2000. The premiums written by the Pakistan Branch of R&SA during the year ended December 31, 2003 was Rs 269 million. Since following the acquisition, R&SA will cease to carry on any insurance business in Pakistan, R&SA is considering IGI Pakistan's request for the appointment of IGI Pakistan as the Global Network Partner of R&SA global Network Limited in Pakistan to provide services to R&SA's global clients having business in Pakistan.

 

 

ZAFARA INTERNATIONAL

The company has been posting losses since its inception in 1990. It was a project of disposable syringe manufacturing and was financed by Bankers Equity Limited. The project became a sick unit within the first three years of operations. Gross losses were mainly due to low production and sales. The sponsors have already paid payment of an agreed amount of Rs 15 million to ICP and bought back 1.320 million shares. Now general public holding 90,000 shares is offered a price of Rs 14.75 per share for the buy back.

DEWAN TEXTILE MILLS

The company has posted Rs 141.4 million gross profit for the first half of current financial year ended March 31, 2004 as compared to Rs 174.8 million for the corresponding period of last year. Operating expenses went up from Rs 43.4 million to Rs 52.8 million. Financial charges came down from Rs 111.7 million to Rs 58.4 million. As a result profit after tax went up from Rs 11.7 million to Rs 15.5 million.

DEWAN MUSHTAQ TEXTILE MILLS

It seems that the company is hardly posting any profit because whatever it earns bulk of it goes towards financial charges. For the first half of 2003 the company posted Rs 23.9 million operating profit and Rs 21.8 million towards financial charges. For the first half of 2004 the company posted Rs 27.8 million operating profit and Rs 14.5 million went towards financial charges.

Company High  Low Closing Week's Turnover

B.O.Punjab

68.75

65.80

68.25

138,800,000

Oil&Gas Dev.

66.90

65.75

66.60

98,456,700

P.T.C.L.A

44.55

43.10

44.15

96,660,500

National Bank

72.55

71.35

71.35

92,947,000

Fauji Fert Bin

19.70

18.70

19.70

46,563,000

Hub Power

31.95

31.55

31.75

18,749,500

M.C.B.

53.50

52.30

53.00

15,448,800

Askari Bank

70.00

67.75

70.00

15,002,100

Union Bank

33.80

32.05

33.00

9,513,000

Fauji Fert.

131.00

129.10

129.25

6,494,400