STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Oct 09, 2004

 

The market closed with the KSE-100 index breaching 5,300 level. To be precise it gained 97 points during the week to close at 5,343 level. The volume leaders of the week were: OGDC, PTCL, D. G. Khan Cement, Askari Commercial Bank and National Bank of Pakistan. Prices of all other volume leaders went up, except of D. G. Khan Cement. The decline in its price is attributed to closure of the old plant for de-bottlenecking. In the coming weeks, companies belonging to oil and gas sector as well as commercial banks are expected to be the picks of investors.

 

 

 

KASB BANK

 

The Board of Directors of the bank in their meeting held on September 27, 2004 have decided to issue Right Shares in proportion of 32 ordinary shares for 100 ordinary shares at par value. The issue is aimed at meeting the enhanced paid-up capital requirement and consolidating bank's position. 

SAUDI PAK COMMERCIAL BANK

The bank has posted Rs 59.575 million profit after tax for the third quarter ended September 30, 2004 as compared to Rs 353.317 million for the corresponding quarter of last year. The EPS took a nosedive from Rs 2.36 to Rs 0.26. The lower profit can be attributed to reduction in non-interest income and hike in expenses.  Non-interest income came down from Rs 184.502 million to Rs 20.538 million. This fall can be attributed to a loss of Rs 108.212 million from dealing in government securities. As against this, non-interest expenses went up from Rs 85.410 million to Rs 136.124 million, resulting from higher administrative expenses and loss on revaluation of investment held for trading.

 

 

DEAWAN AUTOMOTIVE ENGINEERING

The company (formerly Allied Motors) has released its financial accounts for the year ended June 30, 2004. It has posted Rs 38.263 million loss before tax as compared to Rs 37.396 million loss for the previous year. On the face value it appears that loss has increased. However, a closer look at the results reveals some interesting facts. There was increase in sales but hike in cost of goods sold led to higher gross loss, going up from Rs 7.241 million to Rs 16.467 million. Sales went up from Rs 26.952 million to Rs 31.288 million. As against this, cost of goods sold hiked from Rs 34.193 million to Rs 47.755 million. Some respite was provided by the reduction in operating expenses, going down from Rs 31.113 million to Rs 22.359 million. This decline came from reduction in administrative and general expenses and financial charges. However, accumulated losses remain a serious cause of concern. These were nearly Rs 246 million as on June 30, 2004.

GHANDHARA INDUSTRIES

The company has posted Rs 49.279 profit after tax for the year ended June 30, 2004 as compared to Rs 36.150 million profit for last year. The EPS improved from Rs 5.51 to Rs 7.52. Despite, such an impressive earnings the Board of Directors preferred not to pay any dividend. This decision could only be attributed to huge accumulated losses, amounting to nearly Rs 938 million as on June 30, 2004. The improvement in bottom line has come from increase in sales, going up from Rs 255.874 million to Rs 640.675 million. The increase in sales led to higher gross profit, going up from Rs 32.990 million to Rs 70.574 million. The profit would have been higher had there not significant increase in administrative and selling expenses and financial charges. Administrative and selling expenses went up from Rs 16.270 million to Rs 21.966 million. Financial charges nearly doubled, going up from Rs 10.652 million to Rs 19.976 million.

BESTWAY CEMENT

The company has posted Rs 678.575 million profit after tax for the year ended June 30, 2004 as compared to Rs 112.643 million for the previous year. The EPS (basic) improved from Rs 0.58 to Rs 3.51. However, the Board of Directors approved distribution of 10% dividend and issue of 10% Bonus Shares. The improvement in bottom line can be attributed to growth in sales and better controls on cost of goods sold. Sales went up from Rs 1,792 million to Rs 2,666 million. As against this, cost of goods sold moved up from Rs 1,334 million to Rs 1,596 million. Reduction in financial charges, going down from Rs 269 million to Rs 139 million, also contributed to higher net profit. One fails to find a plausible reason for declaring meager dividend despite posting Rs 3.51 earning per share.

 

 

FIRST PARAMOUNT MODARABA

The Modaraba has posted lower profit for the year ended June 30, 2004 and also decided to pay lower dividend among the certificate holders. It has posted Rs 8.686 million profit for the period under review as compared to Rs 9.305 million for the previous year. Dividend announced for the year 2004 was 12.5% as compared to a payout of 13% for the year 2003. However, it is worth noting that while the EPS for the year 2004 works out to Rs 1.56, the management approved distribution of Rs 1.25 per certificate.

Company High  Low Closing

Week's Turnover

Oil & Gas Dev.

65.65

63.95

65.55

236,571,700

P.T.C.L.A

44.60

43.25

44.60

198,550,000

D.G.K. Cement

57.00

55.95

56.60

92,144,700

National Bank

70.70

70.15

70.60

91,543,600

Askari Bank

87.40

83.75

87.40

90,900,300

Hub PowerXD

30.15

28.95

28.95

62,477,500

Lucky Cement

37.65

37.25

37.65

57,629,500

M.C.B.

51.95

50.00

51.95

51,742,400

Dewan Salman

19.35

18.95

19.35

19,015,500

I.C.I.

88.20

87.25

88.20

15,435,800