STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Nov 13, 2004

 

According to a report by Elixir Securities Pakistan, the local stock market raced upward before the long holidays. PTC, Engro and ICI Pakistan led the market bringing the index closer to the lethal 5,500 level once again. The word lethal has been used because many punters have been caught wrong-footed at this level during the past. However, the difference between this rally and the previous rallies is that this time around it is not the index heavy OGDC, which is pushing up the index. Rather it is PTCL, Fauji Fertilizer, Engro Chemicals and other traditional stocks that have been in the fore-front. It is quite possible that 5500 mark

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

may not be as difficult a hurdle. However, inflation figures are a serious risk to the market and they continue to remain around 9% for the fourth consecutive month of the current fiscal year. This factor will act as a stumbling block for the market in the coming days.

KARACHI ELECTRIC SUPPLY CORP.

The ailing utility has posted above Rs 8.2 billion loss from ordinary operations for the year ended June 30, 2004 as compared to about Rs 13.9 billion loss for the corresponding period of last year. However, a subsidy of more than Rs 9.7 billion from the government of Pakistan helped in posting slightly more than one billion profit after tax. Baring this exceptional item, the management seems to have overcome some of its long outstanding problems. Overall revenue improved from Rs 32.5 billion to Rs 36.7 billion. As against this, there was marginal but note worthy reduction in expenditures. Cost of fuel and electricity purchases came down. Fuel cost went down from Rs 21 billion to Rs 20.786 billion. Electricity purchase declined from Rs 15.6 billion to Rs 14.9 billion. Financial and other charges reduced to nearly one third as decline from Rs 2,139 million to Rs 1,099 million witnessed.

METPOLITAN BANK

The bank has announced its third quarter results. While the quarterly profit was more or less as for the corresponding quarter year, the accumulated profit for nine-month period improved significantly. The nine-month profit after tax was Rs 591 million as compared to Rs 481 million for the corresponding period of last year. The improvement in profit can be attributed to overall improvement in the operations. The interest as well as non-interest improved. Along with this there was increase in expenditures. Total income grew from Rs 1,339 million to Rs 1,582 million. As against this total expenditures went up from about Rs 484 million to Rs 592 million.

BESTWAY CEMENT

The company has posted good results for the quarter ended September 30, 2004 registering more than double the profit as compared to the corresponding period of last year. Profit after tax improved from Rs 104 million to Rs 226 million. This improvement in profit can be attributed growth in sales. Net sales grew from Rs 615.7 million to Rs 853 million. As against this, cost of sales went up from Rs 404 million to Rs 476 million. Another factor contributing to improvement in bottom line was the reduction in operating expenses, going down from Rs 41 million to Rs 35.7 million. As a result EPS improved from Rs 0.54 to Rs 1.17. However, operating expenses nearly doubled, going up from Rs 13 million to Rs 26 million.

COLGATE PALMOLIVE PAKISTAN

The company has posted Rs 80 million profit after tax for the quarter ended September 30, 2004 as compared to Rs 56 million profit for the corresponding period of last year. As a result of higher profit EPS improved from Rs 4.59 to Rs 6.56. The improvement in bottom line can be attributed to growth in net sales, going up from Rs 780 million to Rs 920.7 million. As against this, cost of goods sold went up from Rs 559 million to Rs 682 million. Another factor contributing to higher profit was lower tax liability.

CLOVER PAKISTAN

The company has posted lower profit for the quarter ended September 30, 2004 as compared to the corresponding period of last year despite growth in sales. Net sales went up from Rs 78 million to Rs 89 million. As against this, cost of goods sold hiked from Rs 45 million to Rs 53 million. Profit further eroded due to increase in operating expenses, going up from Rs 23 million to about Rs 28 million. As a result profit after tax declined from Rs 6.988 million to Rs 6.174 million.

 

 

BALOCHISTAN GLASS

The company has posted Rs 2.7 million loss after tax for the quarter ended September 30, 2004 as against Rs 8.5 million profit for the corresponding period of last year. This reversal of fortune can only be attributed to lower sales and higher cost of goods sold. Sales came down from Rs 246.6 million to Rs 211.6 million. As against this, cost of goods sold inflated from Rs 149.8 million to Rs 167.7 million.

Company High Low Closing

 Week's Turnover

P.T.C.L.A XD

39.85

37.80

39.85

75,781,000

Oil&Gas Dev.XD

66.60

66.25

66.60

38,409,600

D.G.K.CementXDXB

51.30

50.80

51.30

29,512,400

Lucky CementXB

37.55

36.55

37.55

24,802,000

National Bank

72.20

71.30

72.20

19,642,000

Engro Chem.

108.00

102.35

108.00

13,545,300

M.C.B.

51.00

50.10

51.00

11,532,000

Hub PowerXD

30.25

29.85

30.25

8,871,500

Pak PetroleumXD

119.85

118.70

119.85

7,687,600

Fauji Fert.XB

119.50

116.90

119.50

6,806,900