On of the factors, which has the potential to
affect stock market, is future interest rates movement. The State
Bank of Pakistan on Wednesday raised 62.346 billion rupees through
sale of Treasury Bills against a pre-auction target of 70 billion
rupees. It also raised yield a little above the market expectations.
The total bids submitted were to the tune of 105.3 billion rupees.
The SBP accepted 62.252 billion rupees bids against 3-month bills at
a cutoff yield of 4.7441 percent. And a token amount of 100 million
rupees against 12-month bills at a cutoff yield of 5.4891 percent.
According to market sources, by accepting 100 million rupees against
12-month bills, the central bank has tried to maintain the yield
balance between the tenors rather than leaving a wide gap.
MUSLIM COMMERCIAL BANK
Muslim Commercial Bank has posted 2.54 billion
rupees profit after tax for the year ended 31st December 2004. It
had posted 2.23 billion profit last year, registering a growth of 14
percent. Earning per share improved from 6.61 rupees to 7.53 rupees.
The Board of Directors approved issue of 10 percent Bonus Shares.
The bank had already paid two interim dividends, 10 percent in March
and 15 percent in September 2004. The Board also approved issue of
15 percent Right Shares at a premium of 15 rupees per share.
PICIC GROWTH FUND
The PICIC Asset Management Company has announced
the half-yearly results for the period ended 31st December 2004 of
its mutual funds. PICIC Growth Fund earned a total income of 536
million rupees, excluding unrealized gains as compared to 449
million rupees for the corresponding period last year. The fund also
announced issue of 25 percent Bonus Shares. Pakistan Investment Fund
earned a total income of 513 million rupees, excluding unrealized
gains. A 15 percent interim cash dividend was also announced.
Pakistan Oilfields announced its 1HFY05 results
posting a profit after tax of Rs1,402 million (EPS: Rs10.68). It was
12% higher as compared to a profit of Rs1,247 million (EPS: Rs6.49)
for 1HFY04. The results were inline with market expectations.
However, decision of not paying cash was a surprise. Analysts are of
the view that despite availability of sufficient cash for potential
investment in National Refinery, the company decided to retain its
earnings for the acquisition purpose. Growth in earnings was mainly
driven by top-line growth of 15% as a result of 36% increase in
international oil prices. Operating cost and exploration cost was
21% and 25% higher in 1HFY05 respectively as compared to the last
year. However, reduction of 12% in the royalty mitigated the impact
and operating profits improved by 15%. This impact trickled down to
the profit before tax. Analysts expect the company to witness better
growth in earnings due to (I)
commencement of commercial production from Tal field (II)
full quarterly impact of recommencement of Turkawal field (III)
upward revision of gas prices and (IV)
capital gains on disinvestments of Attock Petroleum shares in
Attock Refinery has announced its 1HFY05 results
posting a profit after tax of Rs890.9 million (EPS: Rs30.91) as
compared to Rs264 million (EPS: Rs9.38) in 1HFY04. Major reasons
behind 234% growth were: 1)
an increase of 72% in revenues driven by 43% increase in
international oil prices and 18% growth in domestic POL demand
leading to better capacity utilization, 2)
a 320bps improvement in refinery margins due to higher growth in
refined product prices internationally and 3)
base case affect where last year the refinery witnessed operating
losses in 1QFY04 due to slump in POL demand in the local market. On
QoQ basis, however, analysts do not expect ARL to sustain 2QFY05
profit level but on YoY basis growth will continue to remain high.
Union Bank has announced 2004 results, posting
after tax profits of Rs830 million (EPS: Rs4.22) registering growth
of 94%. Results were broadly in line with analysts' expectations.
Key impetus to Union's improved performance came in from a 61%
growth in net interest income. Main reason for slightly higher than
expected earnings was 11% higher non-interest income. Union Bank
announced a final cash dividend of 10% and issue 15% Bonus Shares,
in addition to already paid an interim bonus of 10%. Analysts are
optimistic about Union's growth prospects. Higher net interest
income was the key driver behind the 94% increase in Union Bank's
bottom line. A 61% growth in net interest income has stemmed from
26% growth in advances. Strong consumer and corporate lending during
the year helped Union Bank to increase its advances portfolio. Total
non-interest income for the year came in 5% lower, primarily due to
a 56% decline in other income and 47% decline in dividend income.
However fee, commission and brokerage income registered a 66% growth
as compared to 2003. The stock dividend reflects management's
favorable outlook on future earnings.