STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Aug 21, 2004

 

The market continue to suffer from lack of investors interest. While a variety of reasons were said to be responsible for the lackluster behaviour of the market none seems to be enjoying credibility. There was speculation that the government may abolish the recently imposed CVT.
PICIC COMMERCIAL BANK
The bank has posted Rs 430.5 million profit after tax for the period ended June 30, 2004 and also announced 15% interim dividend. During the corresponding period of last year the bank had posted

 

 

 

 

Rs 241.8 million profit. The improvement in bottom line can be attributed to higher mark-up recovered and lower profit paid on deposits, borrowings etc. Mark-up recovered went up from Rs 1,099.6 million to Rs 1,366.6 million. Profit paid on deposits, borrowings etc. came down from Rs. 808.5 million to Rs 682.8 million.

UNION BANK

The bank has posted Rs 852.4 million profit after tax for the first half of 2004 as compared to Rs 354.3 million profit for the corresponding period of last year. The bank would have posted higher profit had there been no colossal increase in provision against non-performing loans and advances and administrative expenses. Provision against non performing loans and advances went up from slightly less than Rs 6 million to about Rs 200 million. Administrative expenses grew from Rs 1,072 million to Rs 1,211 million. Fees, commission and brokerage income went up from Rs 298 million to Rs 457 million. However, the benefit was completely eroded due to decline in income from trading in government securities, going down from Rs 329 million to less than Rs 52 million. At the time of approval of accounts, the Board of Directors also recommended issue of 10% Bonus Shares.

PAKISTAN PTA

The company has posted Rs 743 million profit before tax for six-month period ending June 30, 2004 as against Rs 457 million loss for the corresponding period of last year. Improvement in bottom line can be attributed to increase in sales and cost optimization leading to nearly five fold increase in gross profit. Sales grew from Rs 7,7941 million to Rs 10,271 million. Whereas cost of goods sold went up from Rs 7,731 million to Rs 8,800 million only. As a result gross profit hiked from Rs 210.5 million to Rs 1,470 million. While the management was able to bring down financial charges. The increase in other charges completely eroded the benefit improvement in gross profit. Financial charges came down from Rs 531.5 million to Rs 382.3 million. As against this, other charges went up from Rs 0.304 million to Rs 236.2 million. It is worth noting that during April-June quarter production of 121,449 tonnes production was the highest ever since the plant commenced production. Another important development was that domestic sales accounted for 99% of the volume sold during the quarter.

HINOPAK MOTORS

The company has posted Rs 157 million profit before tax for six-month period ending June 30, 2004 as compared to Rs 150 million profit for the corresponding period of last year. However, a closer look at the financial results reveal some thought provoking points. Sales went up from Rs 1,669 million to Rs 2,608 million. As against this, cost of goods sold hiked from Rs 1,347 million to Rs 2,261 million. Operating expenses went up from Rs 78.6 million to Rs 103.9 million. Other income declined from Rs 22.7 million to Rs 12.8 million. Financial charges grew from Rs 3.07 million to Rs 7.43 million.

RAFHAN BESTFOODS

The company has posted Rs 13.2 million profit after tax for six-month period ending June 30, 2004 as against Rs 20.6 million loss for the corresponding period of last year. Improvement in bottom line can be attributed to no amortization of restructuring cost during the period under review, whereas Rs 48.5 during the corresponding period of last year. The decline in sales resulted in lower gross profit but reduction in operating expenses and financial and other charges helped in further erosion of bottom line. Sales came down from Rs 751.8 million to Rs 656.5 million. As against this cost of goods sold also came down from Rs 505 million to Rs 458 million. Operating expenses went up from Rs 212 million to Rs 167 million.

OTSUKA PAKISTAN

The company has posted Rs million profit after tax for the year ended June 30, 2004 as compared to Rs million profit for the corresponding period of last year. The payout to shareholders also improved to Rs 2 per share as against Rs 1.75 per share paid for the last year. The improvement in bottom line can be attributed to higher sales leading to higher gross profit. Sales grew from Rs 429 million to Rs 515 million. Along with this cost of goods also went up from Rs 282 million to Rs 325 million. Gross profit improved from Rs 146.6 million to Rs 189.8 million. The increase in administrative and selling expenses, going up from Rs 85 million to Rs 117 million, partly eroded the benefit of higher gross profit.

 

 

Company High  Low Closing Week's Turnover

Fauji Fert Bin

22.65

21.30

22.65

149,811,500

Oil & Gas Dev.

67.05

65.50

66.55

128,560,100

National Bank

73.45

72.00

73.15

59,191,700

Hub Power

31.85

31.20

31.50

30,594,000

P.S.O.

261.75

256.60

261.75

20,152,100

Sui South Gas

30.50

29.80

30.40

19,587,000

Fauji Fert

131.25

129.00

131.25

5,967,300

P.I.A.C.

15.05

14.75

14.75

5,427,000

Bank Alfalah Ltd

49.55

48.70

49.00

2,582,300

Engro Chem.

96.10

94.85

95.50

2,138,200