CAPITAL MARKETS

 

1- FOREX KERB WATCH

2- COT WEEKLY REVIEW

3- FINEX WEEK

4. STOCK WATCH
5. STOCK MARKET AT A GLANCE


STOCK WATCH


By SHABBIR H. KAZMI
Updated Feb 26, 2005

 

 

The KSE-100 index continues to break or improve upon most recently created records, going from one high to another high. All the apprehensions about huge Badla volume and high rates seem to be proving wrong. And no one seems to ready to even think about market going down. However, some of the analysts are of the view that the market is in complete grip of big players and small investors must stay on the sideline. They should only invest in the forthcoming IPOs and public offerings.

The Karachi Stock Exchange has cleared the prospectus of Asset-backed Term Finance Certificates of Naimat Basal Oil and Gas Securitization Company. The total issue size is Rs1.2 billion. This comprises of private placement of Rs900 million and initial public offering of Rs300 million. The tenor of the TFCs will be five years with a floor rate of 7.5% per annum and cap rate of 13% per annum. The investors will be repaid the principal and profits in monthly installments. The principal purpose for the use of subscription money is to pay the originator, Orient Petroleum, for the purchase of LPG plant. The Naimat Basal Oil and Gas Securitization Company is the 3rd Special Purpose Vehicle, issuing TFCs to the general public through the stock exchanges.

PAKISTAN STATE OIL COMPANY

PSO has announced a net profit of Rs2,611 million (EPS:Rs 15.22) for 1HFY05 as compared to a net earnings of Rs2,122 million (EPS:Rs12.30) earned in1HFY04. The earnings are very much inline with market expectation. The company announced a cash dividend of Rs 11/share for the period much higher than the expected payout. While comparing on YoY basis the company witnessed a growth of 23% growth in its earnings mainly due to 38% growth in revenues as a result of (I) a 18% increase in average domestic oil prices and (II) a 28-29% growth in overall POL demand. Analysts expect PSO to witness higher earning growth from 3QFY05 onwards as the impact of higher POL prices in the domestic market will be more evident. The scrip is also expected to remain in limelight due to privatization related news flow.

PAKISTAN TELECOMMUNICATION COMPANY

PTCL released it half-yearly financial results for the period ended 31st December 2004. The company has posted Rs14.523 billion profit after tax. This translates into earning per share of Rs2.85. The Board of Directors also approved distribution of 20% interim dividend. The result was in line with market expectations. The operating cost increased by 11 percent, but was mostly off-set by higher dividend income from its mobile phone subsidiary.

SUI SOUTHERN GAS COMPANY

The supply of natural gas to Sui Southern Gas Company reached an all-time high level of 1.1 billion cubic feet of gas per day in February 2005. The average quantum of gas, received from a total of 12 gas fields in Sindh and Balochistan, and distributed through SSGC's network also remained close to this level in recent weeks. This reflects an increase of over 100 mmcfd gas supply to SSGC over the last year, thus enabling the company to maintain maximum distribution and off-take. Even during the recent shortage, resulting from the shutdown of the Sui Gas Purification Plant, SSGC was able to manage the gas load, and keep most of its industrial and domestic customers adequately serviced. SSGC supplies gas to over 1.73 million customers in more than 925 towns in Sindh and Balochistan.

NDLC-IFIC BANK

Temasek Holdings of Singapore has announced acquisition of 25 percent shares of NDLC-IFIC Bank, commonly known as NIB. This acquisition has been made through its 100 percent owned subsidiary, Buggis Investment. A notification was sent to Karachi Stock Exchange in compliance with the regulatory framework pertaining to substantial acquisition of voting shares and takeover. This is the first investment by Temasek in Pakistan. Temasek Holdings is the investment arm of the government of Singapore. It is currently rated AAA by Moody's and, Standard and Poor. It manages a diversified portfolio of U$53 billion in companies, which are based in Singapore, Asia and OECD countries.

 

 

FAYSAL BANK

The bank has posted Rs1.753 billion profit after tax for the year ended 31st December 2004. It had posted Rs2.151 billion profit for the previous year. The Board of Directors also approved distribution of 25% final dividend, in addition to already paid 20% interim dividend. This raises the total distribution to 45% for the full year. The Board also approved issue of 10% Bonus Shares.

BANK OF PUNJAB

The BoP also announced its financial results for the full year ended 31st December 2004. The Board of Directors also approved issue of 20% Bonus Shares. This is addition to already announced 20% Bonus issue at the time of release of half-yearly accounts. The Bank has posted Rs1.736 billion profit after tax as compared to slightly more than one billion rupees profit for the previous year. The earning per share comes to Rs9.08.

COMPANY

HIGH

LOW

CLOSING

WEEK'S TURNOVER

Oil&Gas Dev.

118.85

99.80

118.85

939,754,200

P.T.C.L.A

69.35

67.80

68.20

615,531,000

Fauji Fert Bin

33.75

31.90

31.90

189,367,500

D.G.K.Cement

70.50

66.65

66.65

151,066,400

Pak Oilfields

322.70

292.00

320.65

144,878,200

M.C.B.

86.40

78.95

78.95

134,224,500

Hub Power

34.25

32.80

33.35

126,881,000

Lucky Cement

54.85

49.25

49.25

124,532,500

Engro Chem.

135.00

128.05

129.00

8,643,200

Fauji Fert.SPOT

176.10

156.15

156.15

8,209,600