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 Mar 05, 2005

 

 

Over the week, KSE-100 index gained about 507 points and breached 8,500 barrier. The record keepers were not given a breather as the week witnessed improvement of previously created records. On Friday, two more records were created. The index closed at record high of 8,792.7 with a record single day gain of nearly 296 points.

During the week, the entire show at the Karachi Stock Exchange was run by the 'top five', which contributed about 547 points to the total increase of 501 points. This implies that the rest of the index actually declined by about 40 points. The rally was purely based on potential privatization, high international oil prices and better earnings.

Tamasek, a Singapore-based holding company managing assets of over US$ 90 billion acquired 25% stake in NIB (a local commercial bank). The company expects the economy to grow and expects the banking sector in general and NIB in particular to be well poised to benefit from the upturn. Investment by big foreign groups is indicative of the turning tides in Pakistan's economy.

Yet another pleasant surprise for all was the number of applications received against the public offering of Kot Addu Power Company (KAPCO). A total of 1.4 million applications were received against a required number of 316,000. This has created a new record, which may be difficult to improvise. A very well planed marketing of KAPCO has yielded very positive result. To continue the hype the Privatization Commission placed advertisement about the two forthcoming transactions, United Bank and State Life Insurance Corporation.

The Badla statistics did not reflect the buying spree that was evident at KSE, as the volumes declined with each day passed by. The State Bank came out with a circular that instructed banks/DFIs to restrict their exposure in Badla to the amount of exposure the bank/DFI had as on February 25, 2005. This was also a reason for the decline in badla volumes and investment. The weighted average Badla rate at KSE remained glued at 18% throughout the week. Badla financing is becoming harder and harder to come by with Badla volumes depicting the situation. KSE Badla volume fell from 377 million shares on the previous Friday to 306 million shares this Friday. Investors have now accustomed themselves by taking positions in stock futures, margin financing, and outside market Badla as means of leveraging their positions. In fact, on March 03, the total value of futures traded was greater than total value of trading in the T+3 market.

The list of Badla eligible securities is getting shorter and the last company whose stock exited from the list was SNGPL. This was the first security to leave the list in the current month. Askari Commercial Bank, MCB and Maple Leaf Cement will be the other three to exit the COT eligible list this month.

OGDCL

The week started with the half yearly results announcement by Oil and Gas Development Company. The company posted Rs15.77 billion profit after tax as compared to Rs9.73 billion profit for the corresponding period last year. Earning per share improved from Rs2.26 to Rs3.67, a growth of 62%YoY. Analysts expect further improvement in the bottom line of the company in the second half due to the full impact of production enhancement of oil and gas from its main fields. The full year EPS forecast is Rs7.9. The recent decision of OGDCL to allow treasury to manage its cash portfolio can lead to a gain of one rupee to the company's EPS in FY06.

SUI SOUTHERN GAS COMPANY

SSGC announced its 1HFY05 results on Monday. The company posted a profit after tax of Rs524.3 million (EPS: Rs0.78), recording an improvement of only 6% over 1HFY04 result of Rs495 million (EPS Rs0.74).

HUBCO

The company announced its half yearly financial results posting profit after tax of Rs2.67 billion (EPS: Rs2.30) as against a profit of Rs2.58 billion (EPS: Rs2.23) in 1HFY04. The company also declared a cash dividend of Rs1.3 per share. The result was lower than market expectations and as a result the stock took a beating at the market on result announcement.

PICIC

The Board of Directors of Pakistan Industrial Credit and Investment Corporation have decided to issue 30 percent Bonus Shares. This recommendation came at the time of approval of full year financial results. Bonus Shares are in addition to already paid 25 percent interim cash dividend. PICIC has posted Rs1,636 million profit after tax, registering 81 percent increase as compared to last year. Earning per share improved to Rs8.83 from Rs5.17 for the previous year.

BANK OF PUNJAB

The Bank of Punjab has posted Rs1.386 billion profit after tax for the year ended 31st December 2004. The Bank had posted Rs689 million profit last year. The EPS for year 2004 came to Rs9.08 compared to Rs4.58 last year. Deposits grew by 57 percent to Rs54.724 billion. Advances registered 115 percent growth to Rs39.439 billion.

 

 

COMPANY

HIGH

LOW

CLOSING

WEEK'S TURNOVER

P.T.C.L.A

76.55

68.10

76.55

848,855,500

National Bank

144.30

138.00

144.30

233,078,300

P.S.O.

436.50

412.45

436.50

194,885,000

Pak Oilfields

339.75

317.00

337.35

130,719,400

Fauji Fert Bin

32.45

31.50

32.45

84,404,000

Hub Power

33.50

30.80

30.80

63,201,000

M.C.B.

83.75

76.05

83.75

27,387,000

Fauji Fert.XDXB

162.00

154.40

162.00

11,637,000

Engro Chem.

129.00

126.95

128.00

4,141,400

Adamjee Ins.

77.75

76.00

77.55

3,516,000