STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Sep 25, 2004

 

The week witnessed high volatility at all the three stock exchanges. During the initial days of the week market remained persistently in the grip of bearish sentiments. However, subsequently bulls got the control of market. Some analysts believe that recovery of KSE-100 index was mainly due to improvement in prices of PTCL and OGDC contributing the highest weightage in the index.
HUBCO
According to the information made available by HUBCO, for the times being only Unit-2, out of four generators is in operation. However, the details provided do not provide precise information about the 

 

 

 

 

units under outage. It only says that Unit-1 is on annual scheduled maintenance outage and repairs will continue for another two weeks. Unit-3 was taken out of service and was expected back in service within two weeks. Unit-4 is also expected to commence generation shortly. However, the information provided by the company is scanty and ambiguous and does not tell the precise time frame.

CHENAB

The company is raising Rs 800 million by issuing preference shares carrying a dividend rate of 9.25% per annum. Dividends are cumulative and carry a put and call option exercisable after the 4th year. An amount of Rs 640 million has been raised through private placement and remaining Rs 160 million was to be mobilized through offer to the general public. The issue will help the company in improving its balance sheet. However, investors need to consider the company's ability to pay dividends to the preference shareholders. According to some analysts, the cash flow may come under pressure in the coming years, as the company would still be carrying around Rs 4.5 billion debt on its books.

FAUJI TWINS

The CEOs of Fauji Fertilizer Company and Fauji Fertilizer Bin Qasim recently visited Morocco. During this visit an agreement was signed with a leading Moroccan company for setting up a joint venture for producing Phosphoric Acid. According to the arrangements, 375,000 tons Phosphoric Acid will be produced annually, using the facilities of the Moroccan partner. The cost of project is estimated at 203 million US dollars. The 800 million Moroccan Dirhams equity will be held equally by both the parties. The project is expected to commence commercial production in first quarter of 2007.

PAKISTAN TELECOMMUNICATION COMPANY

The Board of Directors meeting of PTCL has been scheduled for 29th September to approve the financial accounts for the year ended 30th June 2004 and also approve distribution of dividend, if deemed fit. During the first three quarters, PTCL has posted 19.5 billion rupees profit after tax. The full year earnings forecast ranges from 26.8 billion rupees to 29.6 billion. This translates into an EPS of 5.25 to 5.8 rupees. The forecast for expected final dividend ranges from 3.75 to 4.75 rupees. Keeping in view the historic payout, the overwhelming consensus is on least 40% dividend announcement.

OGDC

The Board of Directors of OGDC has approved distribution of 12.5 percent final dividend for the year ended 30th June 2004. It has already paid 27.5 percent interim dividend, which raises the total payout to 40 percent. The company has posted 22.4 billion rupee profit after tax, which translates into an EPS of 5.21 rupee per share. The improvement in profit can be attributed to about 14 percent increase in sales. This was made possible due to increased production from new discoveries.

LUCKY CEMENT

Lucky Cement has released it financial results for the year ended 30th June 2004. The Board of Directors also approved issue of 7.5 percent Bonus Shares. However, it skipped payment of cash dividend. Lucky has posted about 686 million rupee profit after tax for the year, compared to 228 million rupee profit posted last year. According to some analysts, the reason for not paying any dividend, despite an earning per share of 2.8 rupee, seems to be the expansion plan being undertaken by the company. It is believed that after the completion of this expansion, production capacity of Lucky Cement will increase to 3.54 million tons cement per year.

 

 

MILLAT TRACTORS

Millat Tractors has released its financial accounts for the year 2003-2004. It has posted about 394.6 million rupee profit after tax. The Board also recommended distribution of five rupee per share final dividend and issue of 50 percent Bonus Shares. The company has already distributed eight rupee per share interim dividend. This raises the total payout to shareholders to 130 percent for the full year.

ABAMCO COMPOSIT FUND

The International Finance Corporation will invest 300 million rupee in the recently floated ABAMCO Composite Fund. According to the information available, the International Finance Corporation (IFC) will provide the central bank 5 million dollars to be passed on to the ABAMCO. This investment by the IFC in ABAMCO Composite Fund is expected to pave the way for further investment in the mutual sector for other foreign investors.

Company High  Low Closing Week's Turnover

P.T.C.L.A

42.30

38.45

42.30

190,884,500

Oil & Gas Dev.

60.30

58.40

60.30

106,380,600

Hub Power

31.25

29.55

30.45

71,631,000

D.G.K.Cement

56.30

53.65

56.30

67,627,000

National Bank

68.50

64.30

68.50

51,042,700

Pak Petroleum Ltd.

114.05

110.45

113.00

49,588,800

Lucky Cement

35.20

32.80

35.05

35,097,000

Fauji Fert Bin

19.45

18.15

19.15

29,145,500

M.C.B.

47.60

45.50

47.55

13,731,100

Fauji Fert.XB

105.50

103.25

105.50

4,036,500