KARACHI STOCK MARKET NEWS

Dividends : DG Khan Cement has recorded a Rs 525 million net profit in the year ended June 30, 2009, overcoming a loss of Rs 53 million in the last year. The earnings per share also rose by Rs 1.96 during the year under review against Rs 0.21 loss per share in the previous year, The improvement in profitability is attributed to a considerable jump in retention levels (up 59 percent) during the year. The net sales of the company jumped to Rs 18 billion in the said year, compared to Rs 12 billion in the previous year….On the export front, the company sold 1.58 million tonnes of cement in FY09 as compared to 0.75million tonnes previously, thus recording a massive 109 percent jump against the industry growth of 47 percent…Daily Times

Kot Addu Power Co. (KAPCO) : 42% Cash - EPS : 6.44

D.G. Khan Cement (DGKC) : EPS : 1.96

Jahangir Siddiqui & Co. (JSCL)

Pakistan Oilfields Ltd (POL)

Suttabhai has cancelled his trip to the mountains and regular posting will continue without any hiccups.

The KSE-100 index made an intra-day high of 8,938 and closed up at 8,769. The market was extremely volatile with wild swings in certain stocks, (e.g. Rs.10 in OGDC)  A lot of foreign money has been pumped into the market in the last two sessions and volumes have risen above the 200 million mark in the last two days. While the upward momentum could well continue past the current target of 8,700, some correction could set in soon.

Dividends : Pakistan International Container Terminal (PICT) on Tuesday announced a 76 per cent increase in profit for financial year 2008-09, helped by a substantial depreciation of the rupee. Profit surged to Rs935.689 million in fiscal 2009 compared to Rs529.260m recorded in the previous year despite  sluggish trade activity in the slowing economy…PICT’s Board of Directors has recommended a 20pc bonus share… The News

Oil & Gas Development Company (OGDC) has hit hydrocarbon reserves in its exploratory well Nashpa No 01, district Karak of NWFP… the well has produced 3,000 barrels of oil and 9.678 mmcf per day of gas on 32/64" choke size at wellhead flowing pressure of 2340 PSI. The well is a joint venture between OGDC, PPL (30 pc) and Government Holdings (pvt) Ltd (05 pc). The well was spudded on June 29, 2008 and drilled down to its target depth of 4384 meters… Aaj News

Urea producers on Tuesday raised the price of urea by Rs 30 per 50-kg bag across the country due to rising cost of production and short supply,.. almost all urea producers had announced an increase of around 5 percent in the urea prices to pass on the impact of hike in the utility tariff and petroleum products’ prices.Slow supply was creating tremendous shortage of the commodity in the local market, especially in the Punjab, compelling growers to pay more money for an important component of crop, they said.. due to massive shortage and delay in the import of the commodity by the Trading Corporation of Pakistan (TCP), the urea was being sold at Rs 800-850 per bag in the black market."If the government does not make necessary arrangements for better supply then the urea price may move up to Rs 900 per 50-kg bag in the domestic market," they added. On the directives of the federal government, the TCP is importing urea from Saudi Arabia and a consignment has already reached Gwadar, which is still not unloaded due to some quality issues…Aaj News

Market Low : 8,565.60  High : 8,938.44

Market Close : 8,769.24 — 93.57  points up

Posting will be sporadic after today for the next 10 days as  Suttabhai is off to the mountains where internet coverage is scrappy to non-existent.

National Bank of Pakistan, the nation’s biggest lender by assets, said second-quarter profit declined 41.5 percent after it paid a higher rate of interest on savings accounts.Net income fell to 2.03 billion rupees ($24 million), or 1.88 rupees a share, from 3.47 billion, or 3.22 rupees a share, a year earlier, the Karachi-based lender said in a statement to the stock exchange today. Revenue fell to 8.92 billion rupees from 10.04 billion.The stock has advanced 69 percent this year.Moody’s Investors Service on Aug. 17 raised the outlook on the long-term foreign currency deposit ratings on National Bank to stable from negative, citing an increase in the nation’s bailout by the International Monetary Fund.The lender’s profit in fiscal first half declined to 6.32 billion rupees, or 5.87 rupees a share, from 8.1 billion, or 7.52 rupees a share,…Bloomberg

Pakistan State Oil Ltd., the nation’s biggest fuel retailer, said revenue may climb to 1 trillion rupees ($12 billion) by 2012 by increasing sales of bio-diesel and liquefied petroleum gas.The company plans to open 200 retail outlets for LPG, a fuel used by cars and for heating at homes, by June, Managing Director Irfan K. Qureshi said in an interview in Islamabad. The company reported revenue of 719 billion rupees last fiscal year, driven by diesel and gasoline sales.Pakistan State Oil needs to diversify its earnings after reporting the first loss in 33 years, when it was formed. PSO is investing in LPG and other fuels as Pakistan’s government tries to reduce its oil import bill, which accounts for about one fourth of overseas purchases…Demand for fuels is set to rise as the economy rebounds from the slowest pace of growth in eight years.
Pakistan State Oil has a 61 percent share in the country’s refined oil market and 81 percent in crude oil sales,..The new product lines and inventory gains will help State Oil return to profit this fiscal year,… The company posted a loss of 6.69 billion rupees in the year ended June 30 as declining crude prices eroded the value of its inventory…. Bloomberg

Market Low : 8,531.16  High : 8,710.23

Market Close : 8,675.67 — 134.45  points up

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

The KSE-100 index closed at its highest level for 2009 as the market was boosted by the approval of the Bhasha dam project and the news of the launch of margin financing in the near future. While volumes were relatively low at 97.7 million , the market made an intra-day high of 8,118 and closed up at 8,107.

Dividends : Habib Bank Limited (HBL) has announced a profit after tax of Rs6.6 billion for the first half of calendar year 2009 ended on June 30. This is three per cent higher than Rs6.4 billion profit posted in the corresponding period of last year. The bank, however, announced no payout for ordinary shareholders along with the review of half yearly financial accounts. Net profits translated into Earning per Share at Rs7.2 against Rs6.98 EPS recorded in the first half of calendar year 2008… Source : The News

News : The Trading Affairs Committee of the Karachi Stock Exchange (KSE) on Friday rejected the margin financing mechanism and demanded the re-launching of modified CFS MK-II leverage product. The committee, in its meeting held on Friday evening, completely refused to accept the current margin financing draft approved by the Securities and Exchange Commission of Pakistan (SECP) and formed a sub committee, comprising of 5 members, to discuss the matter with SECP commissioner Sohail Dayala on Monday (24 August)… The Nation

The Karachi Stock Exchange (KSE) has revised the list of margin eligible securities for ready market on the basis of eligibility criteria approved by the Securities and Exchange Commission of Pakistan (SECP), effective from September 21st…the new list included 40 scrips which would be acceptable as collateral against exposure margins and market-to-market losses….The new list includes ABL, ACPL, AHL, AHSL, AICL, AKBL, ANL, APL, ATRL, BAFL, BAHL, BOP, BOSI, DGKC, Engro, EPCL, FABL, FFBL, FFC, HBL, HUBCO, ICI, JOVC, JSCL, JSIL, KAPCO, Luck, Mari, MCB, NBP, NETSOL, NIB, OGDC, PAEL, PAKRL, PKGS, POL, PPL, PRL, PSO, PTCL, Shell, SNGP, SPL and UBL…The News

Market Low : 7,973.45  High : 8,118.16

Market Close : 8,107.94 — 134.49  points up

Dividends : National Refinery Limited has declared a final cash dividend of Rs 12.50 per share as it posted a profit after tax of Rs 1,533 billion during the year ending June 30, 2009… the refinery earned a gross profit of Rs 2.813 billion during the period under review with earnings per share at Rs 19.17… Source : Daily Times

Attock Cement has posted a record profit after tax of Rs 1.492 billion for the year ending June 30, 2009 and declared a 20 percent bonus and 32.5 percent final cash dividend… the company has earned a pre-tax profit of Rs 1.988 billion during the year with earnings per share surging to Rs 20.69… Source : Daily Times

News : Margin Financing, an alternate leverage product of CFS Mk-II or traditional badla to cater to the financing needs of the brokerage houses and their clients, is most likely to be launched at the Karachi Stock Exchange next week, it is learnt. The Trading Affairs Committee of KSE, in its meeting to be held here on Friday (today) would review the final concept paper on Margin Financing and sources said that the committee is most likely to approve the concept paper with some amendments…. Aaj News

Market Low : 7,926.63  High : 8,013.96

Market Close : 7,973.45 — 20.75 points up

Packages : EPS : 46.38

Shell Gas LPG Pakistan Ltd (SGLL)

Shell Pakistan : 80% CASH - EPS : 14.80

Arif Habib Bank : EPS : -1.14

National Refinery : 125% Cash - EPS : 19.17

Pakistan Refinery Ltd : EPS : -130.62

Attock Cement Pakistan Ltd : 32.5% Cash + 20% Bonus - EPS : 20.69

Askari Bank  : EPS : 1.15

Faysal Bank : EPS : 0.77

Habib Bank Ltd  : EPS : 7.14

Tri-Pack Films Ltd. : EPS : 7.57

Azgard Nine Ltd (ANL) : EPS : 2.51

Pakistan Petroleum Ltd :  30% Cash + 20% Bonus :  EPS 33.38

Pak Suzuki Motor Co. (PSMC) : EPS : 1.96

Nishat Mills : 20% Cash - EPS : 6.81

JS Bank : EPS : -1.31

Adamjee Insurance : 15% Cash - EPS : 5.18

ICI Pakistan Ltd. : 35% Cash - EPS : 7.39

Pak ReInsurance Co. Ltd : EPS : - 2.25

National Bank Ltd : EPS : 5.87

Dividends : The profit after tax of Oil and Gas Development Company Limited (OGDCL) has increased to Rs 55.539 billion in the year ended June 30, 2009 (FY09) as compared to Rs 44.338 billion earned in FY08. The earning per share of the company surged to Rs 12.91 in the period under review against Rs 10.31 in the same period a year back…The board of directors of the company in its meeting approved a final cash dividend for the year at Rs 2.50 per share, ie 25 percent. … According to the financial results, the company’s net sales increased to Rs 130.829 billion in FY09 against Rs 125.908 billion in FY08… Aaj News