Updated Feb 18, 2005



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 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.


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 3QFY04.


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.