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Activities slowed down.

Activities Slowed Down

Upward drive of equity values was maintained in the stock market with State Bank General Index of share prices pushed upward to 484.80 and aggregate market value at Rs. 91.144 billion. The following table illustrates the position.

Table : (Rs. in million)
 SBP Aggregate
 General Market
 Index of Capitalisation
17.07.91 441.04 83.414
24.07.91 456.15 86.500
31.07.91 474.32 89.949
07.08.91 482.94 91.551
13.08.91 483.86 91.018
21.08.91 484.54 91.031
28.08.91 484.80 91.144

The positive factor was the sanction to promoters of 10 commercial banks in the private sector. Another factor was the amendment in Exchange Control Rules to enable non-residents invest on repatriable basis in the shares of those manufacturing concerns which are either not quoted on the stock exchanges or which are private limited companies.

Schon and Nishat (Chunian) Textile received heavy subscription amounting to over Rs. 1000 million. The Schon Textile was over subscribed 34 times of the subscription required. Bilal Fibres Ltd. floated its public issue amounting to Rs. 2.4 million.

Privatisation move has been slowed down. It has now been decided that Pakistan Telecommunication Corporation will not be privatised in haste. The Privatisation Commission has once again published a list of 90 companies inviting fresh applications from buyers. It may be mentioned that out of 18 units advertised so far offers have been received only for three units.


There are at present 51 sugar mills operating in the country of these 24 are located in Punjab, 22 in Sindh, 5 in NWFP. Seven new sugar mills are likely to be commissioned during 1991-92 season. These are as follows:
National Sugar Mills 54,400
Ramazan Sugar Mills 81,600
Chenar Sugar Mills 54,400
Nayyar Sugar Mills 54,400
Mirza Sugar Mills 43,200
Khairpur Sugar Mills 43,200
Chashma Sugar Mills 38,400

Production of sugar per mill shows that mills in Sindh are more efficient followed by the Punjab and NWFP. Average sugar production per mill during 1990-91 season was 18,000 tonnes in NWFP, 39,000 tonnes in Punjab and 41,000 tonnes in Sind. On Pakistan basis, average sugar production per mill was 37,000 tonnes during 1990-91. Average production per mill shows declining trend during the last four years from 43,000 tonnes in 1987-88 to the present level of 37,000 tonnes.

Sugar mills during 1990 have shown better results which are evident from their earnings per share. Bawany remained on top. Performance of other mills was also satisfactory as shown in the following table:

Table : Earning Per Share of Sugar Mills in 1990
 1990 1989
Adam Sugar 2.36 -
Alnoor Sugar 4.66 4.73
Baba Farid 1.79 -
Bawany 11.13 8.31
Crescent Sugar 3.69 9.08
Dewan 7.37 -
Fecto 2.67 1.43
Faran - 3.02
Habib Sugar 5.49 -
Husein Sugar 9.53 4.69
Mirpurkhas 6.42 2.89
Mehran 9.98 4.95
Sanghar 2.75 -
Shahmurad 3.77 2.08
Shakargani 5.29 2.28
Shahtaj 7.63 3.03
Thal 8.47 6.86
United Sugar 7.90 -


Pasni Power Plant: Prime Minister Nawaz Sharif to inaugurate 45-megawatt power plant installed at Pasni Fish Harbour on Mekran Coast. The Plant is ready for commissioning.

Attock Refinery Limited: Attock Refinery will enhance its refining capacity to 48,000 barrels per day in three phases. The company resolved to enhance the present refining capacity of the refinery by 18,000 barrels per day, keeping in view the recent oil discoveries. However the expansion depends upon the availability of the crude oil by the producers. The first phase of expansion in the refining capacity will be completed by June 1992.

Pakistan State Oil: Pakistan State Oil (PSO) has started planning additional storages, transport and distribution facilities in order to meet the country's current POL needs of 12.5 million tonnes as well as for the future. There is a growth of 10 per cent every year in the POL needs. According to an estimate by 1992-93 Pakistan's POL requirement will be 14.7 million tonnes and by the year 2,000 it will reach 22 million tonnes.

ABL: Employees of ABL have succeeded in contributing Rs. 490 million, 26 per cent of the controlling shares/ownership of the bank. The ABL was established in 1942 and has 747 branches in the country and three overseas.

Islamabad Stock Exchange: Amanullah Khan and Associates have been given Certificate of Registration of Stock Exchange in Islamabad. It is hoped that ISE would be run by professionals in the least interest of industry and trade.

Insurance: Three insurance companies may start life business soon. The previous Government had allowed the life insurance business in the private sector. The present Government is also reported to have encouraged this move. The life business was nationalised in early 1970s and since then it has continuously been handled by the Government sponsored State Life Insurance Corporation (SLIC). The private companies to start life business are reported to be Eastern Federal Union (EFU) and Adamjee Insurance. The third one may be Premier Insurance or East West Insurance Company.


Fresh bids are being invited for several units including United Bank Ltd. for which prequalification bids would be invited. Following are the units available for sale:

AUTOMOBILES Baluchistan Wheels Ltd. Bela Engineering Ltd., Republic Motors Ltd. Bolan Castings Ltd. National Motors Ltd. Naya Daur Motors (Pvt) Ltd. Millat Tractors

CEMENT Rohri Associated Cement Dandot Cement Company Ltd. General Refractories Ltd. National Cement Ltd. Javedan Cement Ltd. Kohat Cement Company Ltd. Wah Associated Cement Zeal Pak Cement D.G. Khan Cement Ltd. Gharibwal Cement Ltd. Maple Leaf Cement Mustehkam Cement Pak Cement Ltd. White Cement Ltd.

CHEMICALS & CERAMICS Swat Ceramics Nowshera Chemicals Antibiotics (Pvt) Ltd. Kurram Chemicals Com. Swat Elutriation Plant Sind Alkalis Ltd. Ittehad Chemicals Ittehad Pesticides Nowshera PVC Company Ltd. Pakistan PVC Ltd. National Fibers

ENGINEERING Karachi Pipe Ltd. Pioneer Steel Mills Ltd. Quality Steel Mills Ltd. Spinning Machinery Textile Machinery Metropolitan Steel Ltd. Pakistan Engineering Company Ltd. Pakistan Switchgears Ltd. Indus Pipe Mills

FERTILIZERS Pak China Fertilizer Hazara Phosphate Fertilizers Ltd. Lyallpur Chemicals & Fertilizers National Fertilizer Marketing Co. Ltd. Pak-Saudi Fertilizer

GHEE United Industries Faisalabad Kohinoor Oil Mills Ltd., Kalashahkaku A & B Industries, Multan A & B Oil Industries, Karachi Burma Oil Mills, Karachi Chiltan Ghee Mills, Quetta Hydari Industries, Hyderabad Bara Vegetable Ghee Mills, Bara Dargai Vegetable Oil Processing Industries Dargai Asif Industries (Pvt) Ltd, Shikarpur Kakakhel Industries, Faisalabad Morafco Industries, Faisalabad Sh. Fazal Rehman & Sons, Multan Suraj Ghee, Sheikhupura Universal Vegetable Ghee and Raw Mills, Sheikhupura Sargroh Vegetable Ghee & Raw Mills, Faisalabad Bengal Vegetable Ghee Mills, Karachi Maqbool Company, Karachi Wazir Ali Industries, Hyderabad Associated Industries, Nowshera Haripur Vegetable Oil Processing Industries Haripur E & M Oil Mills Ltd., Karachi
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Title Annotation:Stock Market; stock exchange activity; Pakistan
Publication:Economic Review
Date:Aug 1, 1991
Previous Article:'Eighth Five Year Plan (1993-98) - Approach Paper.' (excerpt; paper issued by the Pakistan Planning Commission)
Next Article:The Turkish economy at the beginning of 1991.

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