STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Aug 07, 2004

 

The CVT becoming effective with the commencement of current financial year has adversely affected average trading volume. The other factors responsible for poor volume were said to be lack of liquidity due to submission of a record number of application against public offer of shares of Pakistan Petroleum. During the week, balloting was held and with the refund of money by the banks the situation is expected to improve. There seems to be growing interest of investors in selected scrips of commercial banks and cement companies.

 

 

MITCHELLS FRUIT FARMS

During the first nine months of current financial year the company has posted Rs 18 million profit after tax as against Rs 25.7 million for the corresponding period of last year. EPS came down from Rs 5.11 to Rs 3.59. The decline in profit can be attributed to lower sales. Sales came down from Rs 554 million to Rs 517 million. As a result, gross profit declined from Rs 114 million to Rs 91 million. However, the erosion in bottom line was contained due to lower operating expenses, decrease in financial and other charges and higher other income. Operating expenses declined from Rs 67 million to Rs 63 million. Financial and other charges came down from Rs 9.4 million to Rs 6.6 million. Other income improved from Rs 2 million to Rs 6 million.

AL-GHAZI TRACTORS

The company has posted Rs 435 million profit after tax for the first half of 2004 as compared to Rs 394 million profit for the corresponding period of last year. The Board of Directors also approved distribution of 100% interim dividend. The improvement in bottom line can be attributed through higher sales. Sales went up from Rs 2,560 million to Rs 2,972 million. As a result, gross profit improved from Rs 691 million to Rs 727 million. Three factors are worth noting about the company that are: 1) low operating expenses, 2) minimal financial charges and huge un-appropriated profit.

KOHINOOR SPINNING MILLS

There seems to be some thing grossly wrong with the company as it has been persistently posting losses and accumulated losses exceeded Rs 944 million as on June 30, 2004. A loser look at the financials indicates that one of the reasons for losses is low operating profit, even not sufficient to cover the financial charges. During first nine months of current financial year the company posted about Rs 10 million operating profit as against this financial charges were as high as approximately Rs 50 million. The situation was worse than that during the corresponding period of last year. The company posted Rs 15 million operating losses and financial charges exceeded Rs 81 million after keeping in view other income on tends to get a feeling that the sponsors have made investment in associate companies by borrowing huge amounts from financial institutions.

KOHINOOR INDUSTRIES

The company also seems to be suffering from the same contentious disease. Accumulated losses as on June 30, 2004 exceeded Rs 1,403 million. An interesting observation was that though sales declined to nearly half the company succeeded in curtailing losses. The company has posted Rs 24.4 million loss after tax for the first nine months of current financial year as against Rs 77.3 loss for the corresponding period of last year. The management may have succeeded in containing financial charges but operating profit is still far lower to cover these.

SAUDI PAK COMMERCIAL BANK

The bank has posted Rs 314 million profit before tax during the first half of 2004 as against Rs 543 million profit for the corresponding period of last year. The higher profit during the first half of 2003 was attributable to realized gains on sale of government securities, a on-recurring item. There has been an overall improvement in the performance. Mark-up income grew from Rs 725 million to Rs 869 million, registering 15.5% growth. Against this mark-up expenses came down from Rs 562 million to Rs 551 million. As a result, net mark-up/interest income went up from Rs 172.7 million to Rs 318.5 million, a growth of 84.4%. During the period under review, deposit base grew from Rs 24,578 million to Rs 30,025 million. Net advances increased from Rs 18,536 million to Rs 23,733 million. Investments, including lending to financial institutions went up from Rs 10,125 million to Rs 10,615 million.

MEEZAN ISLAMIC FUND

The fund commenced its operations on August 08, 2003. It is being managed by Al Meezan Investment Management. The Fund has earned a net income of Rs 253 million for the period ended June 30, 2004. This translates into earnings per unit of Rs 11.94. The Net Asset value of the fund increased from Rs 50 to Rs 61.94. Major sources of revenue during the period under review included capital gains of Rs 126.4 million, dividend income of Rs 59.7 million and surplus on revaluation of securities held for trading of Rs 58.6 million.

 

 

Company High  Low Closing Week's Turnover

Fauji Fert Bin

22.10

20.95

21.85

189,804,500

Oil&Gas Dev.

63.90

62.70

63.85

96,849,000

National Bank

72.55

70.90

72.55

65,426,900

B.O.Punjab

66.30

64.50

66.30

46,729,500

P.S.O.

257.50

253.00

257.50

13,004,600

Fauji Fert.

132.25

131.00

131.15

12,045,200

PICIC Bank

38.95

33.25

38.95

10,063,000

P.I.C.I.C.

84.35

80.90

83.60

7,236,500

Engro Chem.

93.95

93.00

93.95

4,043,300

Shell Pak

375.95

370.00

373.00

53,500