-PIA's revenues increased by
10 percent during July-September 2005.
-PIA's fuel bill increased by
a phenomenal 52 percent to Rs 7.140 billion in 2005 as compared to Rs
4.704 billion in 2004.
-World Bank has approved a
total lending of $475 million for Pakistan.
-The SPI has shown 8.56
percent increase as compared to the corresponding week of last year.
The State Bank of Pakistan (SBP)
has decided to raise the minimum paid up capital requirement for
commercial banks to Rs 6 billion, from the existing requirement of Rs
2 billion. The paid up capital will have to be enhanced in phases,
which has to be completed by 31 December 2009. They will be required
to meet Rs 3 billion by end December 2006, Rs 4 billion by end 2007,
Rs 5 billion by end 2008 and Rs 6 billion by end 2009. The SBP has
also replaced the existing uniform requirement of Capital Adequacy
Ratio with the variable CAR to be based on risk ratings of the banks
determined the central bank annually.
The uncertainty about PTCL
continued to affect investors' sentiments during the week. The bottom
line being conveyed by the government is that Etisalat would finally
make the payment. However, the overwhelming perception is that the
situation is definitely not comfortable for the Privatization
Commission. One after another extension conveys a message that the
Commission is desperately trying to save the deal. One also gets a
feeling that Etisalat was least interested in acquiring PTCL and it is
the GoP "begging" it to please takeover the control. The GoP
has not recovered from the default shock of KESC and it wishes to
avoid another shock.
The PTCL has posted Rs 5.5
billion profit after tax for the first quarter ended 30th September
2005, as against Rs 6.3 billion profit for the corresponding period
last year. As a result EPS declined from Rs 1.23 to Rs 1.08. The
decline in bottom line can be attributed to decline in revenue, going
down from Rs 18.2 billion to Rs 17.7 billion. Domestic revenue went up
from Rs 14.3 billion to Rs 15.9 billion. As against this,
international revenue plunged by 51.7% owing to reduction in the
average settlement rate and provision for contribution to universal
service fund for traffic terminated on mobile networks. The impact was
further aggravated as the international incoming traffic decreased by
37% due to new LDI Operators and mobile operators carrying their own
The Board of Directors of
PICIC Asset Management Company has approved the first quarter results
of two mutual funds under its management, which are PICIC Investment
Fund (PIF) and PICIC Growth Fund (PGF). The Board also approved
distribution of 10% interim dividend by PIF and 15% interim dividend
by PGF along with issue of 20% Bonus Shares. PICIC Asset management
Company has a paid up capital of Rs 3 billion and can be termed the
largest asset management company of the country. It is a wholly owned
subsidiary of Pakistan Industrial Credit and Investment Corporation.
D. G. Khan Cement registered
a decent increase of 9% at the back of local sales going up by 25% YoY,
and exports going down by 50% YoY during the first quarter ended 30th
September 2005. This was despite the fact that the company secured
high margins on the export front by selling at above US$ 60. The fall
in export can be justified on the basis of tight demand supply
scenario prevailing locally. This helped in stabile prices in the
local market, thus generating higher margins. The overall volumetric
growth was on the back of additional de-bottlenecking.
Maple Leaf Cement in its
first quarter results has displayed a substantial rise of 80% YoY in
its bottom line. It has posted Rs 265.7 million profit after tax for
the quarter compared to 147.2 million for the corresponding period
last year. The top line growth of 36% YoY was at the back of 10%
growth in volume coupled with better retention prices in the local
market. The expanded capacity of 6,700 tons per day is expected to
come online as per schedule in January 2007. Availability of
additional production in rising demand bodes well for the company.
Nishat Mills has announced
its first quarter results. It has posted Rs 320 million profit after
tax for the quarter (EPS: Rs 2.20) as compared to Rs 299.7 million
profit (EPS: Rs 2.06) for the corresponding period last year. In core
operations, the company has posted a staggering 79% YoY growth in
operating profit, while accounting rules did not allow the company to
book dividend income in this quarter, which will be visible in second
quarter, showing that the company is on a growth path. Going forward
the growth will be further assisted by reduction in anti-dumping duty
an incentives emancipating from GSP plus.
Some of the highlights of
the week are:
SSGC posting Rs 342 million
profit after tax (EPS: Rs 0.51) for July-September 2005 period.
Pakistan Oilfields posting Rs
1,441 million profit after tax (EPS: Rs 10.96) for the first quarter.
Lucky Cement's line-III
(4200tpd) began commercial production this month. It was initially
scheduled to commence operations from August. With this addition,
Lucky's production capacity goes up from 1.44 million tons to 2.7
million tons of clinker.
Callmate Telips Telecom
announced first quarter results posting profits after tax of Rs 221.95
million (EPS: Rs 4.02).
Urea off-take for
January-September reported 14% growth while DAP sales registered 21%
Shell Pakistan posted profit
after tax of Rs 982 million (EPS: Rs 22.40) as compared to Rs 651
million (EPS: Rs 14.85) posted last year, a growth of 51%.
Nestle Pakistan posted profit
after tax earnings of Rs 845 million (EPS: Rs 18.65), a growth of 10%.
Cherat Cement announced its
quarterly results, net earnings going up by 54% to Rs 232 million
(EPS: Rs 2.79).
Packages posted net profit of
Rs 639 million (EPS: Rs 9.14) for nine months.