STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Dec 04, 2004

 

On the last trading day of the week major activity was observed across the board. The KSE-100 index closed at 5,550 level. However, it once again failed to cross the psychological barrier of 5,600.
According to recently released SBP Financial Market Review for the financial year 2003-04 there was a 26.5% growth in corporate earnings. It was based on a sample of 265 listed companies. Another positive development was a total flotation of 16 companies raising the listed capital by Rs 55.6 billion, bulk being contributed by OGDC. Market capitalization to GDP ratio also improved from 19.7% to 26%.

 

 

 

 

The Investment Corporation of Pakistan has earned an income of 388 million rupees for the fiscal year 2003-04. The bullish stock market led to capital gains of 258 million rupees. The dividend income remained at 84 million rupees. In spite of the fact that a major source of its income has been dried up due to transfer of management rights of mutual funds to the private sector, the income of 388 million rupees reflects commendable performance.

The Securities and Exchange Commission of Pakistan and representatives of the three stock exchanges have decided to meet again on 11th December to discuss the proposed plan of merger and demutualization of the exchanges. Officials of the SECP and heads of Karachi, Lahore and Islamabad stock exchanges met at the SECP office last Monday and discussed issues relating to the merger and demutualization. However, the meeting remained inconclusive as both the sides could not develop an understanding on the proposed measures.

The Pakistan Credit Rating Agency has assigned an asset manager rating of 'AM3' to Atlas Asset Management Company. The rating reflects the company's strong capacity to master the risks inherent in asset management. Although the company has a relatively short operational history, the capacity emanates from its intrinsic capacity of the asset manager, an outcome of an experienced and well qualified management team, comprehensive investment management strategy, stable financial resources and association with a group having diversified business interest.

PAKISTAN STATE OIL COMPANY

Many analysts were of the view that higher oil prices bode well for the largest oil marketing company. However, the recent drift in oil prices does not allow them to give a comprehensive forecast of earnings. However, the growing demand of furnace oil to low water levels at dams is expected to improve the top line. PSO is the major supplier of furnace oil to power plants, particularly the IPPs.

IBRAHIM FIBRES

The company has released its financial results for the year ended 30th September 2004. It has posted 872.4 million rupees profit after tax, which is 81% higher than the profit posted last year. The Board of Directors also approved distribution of 15% final dividend. The profit posted by the company is below market expectations but dividend announced is in line with the forecast. Sales were up by nearly 43% to Rs 16.3 billion. Gross profit improved by nearly 52% to slightly Rs more than Rs 1.8 billion.

OGDC

The Oil and Gas Development Company has increased gas supply from the newly installed Qadirpur gas field. This enhancement has come after the completion of phase-III. The additional gas is being supplied to Sui Northern Gas Pipeline to meet the peak winter demand in its franchised area. The project, which was completed in March, has started its function from 1st November. Over this period supply was maintained at the level required by SNGPL.

PAKISTAN OILFIELDS

The scrip came under speculative buying with the news that it would get one time boost in earnings this year due to reversal of exploration cost. Later on, it became evident that the reversal may not be there in the ongoing year. However, the scrip is expected to remain in focus due to earnings growth resulting from of oil price increase and higher gas production. Another factor, sale of part of its stake in Attock Petroleum also has the potential to improve the bottom line. The company intends to sell 1.193 million shares out of its total holding of 3 million shares. It is likely to yield 270 million rupees from this sell-off. The boost in proceed is also dependent on future appreciation of Attock Petroleum share price, which is being listed at the local stock exchanges.

 

 

KOHINOOR TEXTILE MILLS

Kohinoor Textile Mills has announced issue of 10% Bonus shares but skipped cash dividend payment for the year ended September 30, 2004. The company has declared a net profit of around 363 million rupees, up by 134 percent compared to last year's 155 million rupees profit. The earning per share, after a healthy net profit boost, went up to Rs 4.53 compared to Rs 1.94 for the previous year. On Thursday, the company's shares traded in the range of Rs 48.70 to Rs 52.50 at the Karachi Stock Exchange, closing the day at Rs 49.30, down by Rs 1.70.

Company High Low Closing

 Week's Turnover

Oil&Gas Dev.XD

66.95

66.25

66.25

79,575,700

Sui North Gas

56.65

55.35

55.80

71,275,800

Askari Bank

95.55

91.30

95.55

65,346,800

P.T.C.L.A XD

40.45

40.25

40.45

61,349,500

D.G.K.CementXDXB

52.00

51.50

51.70

58,589,300

Hub PowerXD

30.75

30.55

30.75

56,292,000

Fauji Fert Bin

25.35

24.50

25.35

45,703,000

Pak Oilfields

212.15

209.55

209.55

40,828,100

National Bank

72.85

72.40

72.85

39,677,700

Sui South GasXD

25.60

25.25

25.25

15,364,000