8,287
August 24, 2009
Dividends : Pakistan Petroleum Limited (PPL) has posted Rs 27.702 billion in net profit in the year ended on June 30, 2009 against Rs 19.707 billion in the previous year, depicting 40 percent growth.The financial results sent to the Karachi Stock Exchange on Monday showed that earnings per share of the company also increased to Rs 33.38 over Rs 23.75 in the previous year. Analysts said that higher earnings growth in the year under review was mainly ensued from higher entitled wellhead prices of its uncapped Sui, Kandhkot, Sawan & Miano fields. The company also announced a final cash dividend for the year ended June 30, 2009 at Rs 3.00 per share (i.e.30 percent) on ordinary shares. During the year, net sales of the company rose to Rs 61.580 billion against Rs 45.716 billion in the previous year…. Source : Daily Times
News : Standard & Poor’s raised Pakistan’s sovereign rating by one notch to B-minus, citing improvements in its external liquidity and reduction in its fiscal deficit. The rating outlook is stable. The decision came a week after Moody’s Investors Service raised its rating outlook for Pakistan to stable from negative and after the country received an increase in a loan from the International Monetary Fund (IMF)…."The market has taken this news positively on hopes that there will be an increase foreign activity with an improvement in Pakistan’s rating," said Sajid Bhanji, a dealer at brokers Arif Habib Ltd….Aaj News
Pakistan stocks, Asia’s cheapest, may rebound as falling inflation and the tripling of foreign exchange reserves help to boost the nation’s equities, Credit Suisse Group AG said.The Karachi Stock Exchange 100 Index gained 2.4 percent to 8,298.29 as of 1:23 p.m. local time today, its highest level in eight months, after the country’s long-term sovereign credit rating was raised one level to B- from CCC+ by Standard & Poor’s with a stable outlook.
“Fundamentals” have started to improve, analysts led by Sakthi Siva at Credit Suisse said in a note today. Foreign exchange reserves have tripled to almost $13 billion from $4 billion in October while inflation has halved from a peak of 25.3 percent in August last year to 11.2 percent in July 2009.
“On virtually every valuation metric, Pakistan’s valuations look compelling versus the rest of Asia,” Siva said. “Not only does this make Pakistan the most undervalued market, but the 142 percent discount is almost five times the discount that Thailand, the second-most undervalued market, trades at.”
Pakistan’s price to book ratio is 1.91 times versus Asia’s 1.86 times, while Pakistan’s relative return on equities at 26.7 percent compares to Asia’s 11 percent, the note said. The current 142 percent discount is close to the biggest in history of 177 percent, …. Bloomberg
Market Low : 8,107.94 High : 8,298.71
Market Close : 8,287 — 179.06 points up
