Printer Friendly

Equity on an upward march.

Equity on an Upward March

The change of the governments at the centre and provinces had a favourable impact, General Index of share prices as compiled by the State Bank of Pakistan moved upward from 299.28 on October 23 to 306.67 on November 21 showing a gain of 7.39 points. Aggregate market capitalisation showed a gain of Rs. 1.154 billion up from Rs. 52.683 billion to Rs. 53.837 billion. The following table illustrates the position.

Table :
 General Aggregate
 Index Market
 Number Capitalisation
 (Rs. in million)
23.10.90 299.28 52.683
30.10.90 304.30 53.488
07.11.90 305.22 53.527
14.11.90 305.86 53.856
21.11.90 306.67 53.837

During the month of October five companies were placed for public floatation. These were sapphire. Zafara International, Kaytex Textile First Mehran Modaraba and Islamic Investment Bank.

Table : New Floatations
Name of the Public Subscription
Company Offer
Sapphire Fibres 70.000 463.083
Zafara Int'l. 15.000 1.800
Kaytex Textile 21.519 1.355
First Mehran 25.000 26.015
Islamic Bank 42.500 281.055

Sapphire Fibres and Islamic Bank issues were heavily subscribed. However, it is surprising that Zafara and Kaytex Textile were poorly subscribed. Surprisingly there were 50 companies which came in for public floatation. Of these 21 were textile mills, 11 investment and leasing companies.

Investors were very much after textile shares. As many 38 new textile mills would go into production in this financial year (1990-91). Out of these 33 new textile and spinning units would be set up in the Punjab, 4 in Sindh and one in NWFP. In the preceding year (1989-90) 39 new textile and spinning units went into production.

Name of Company Turnover Highest Lowest
L.T.V. Capital Modarba 2,674,300 22.20 20.10
Rupali Polyester 2,108,600 42.60 39.60
Mohib Textile 1,280,200 15.65 11.75
2nd Prudential Modaraba 947,400 11.90 11.25
1st Int'l Investment Bank 674,600 30.75 23.60
Apollo Textile 513,500 10.40 8.60
B.R.R. 2nd Modaraba 425,800 15.60 15.00
Asia Leasing 355,300 16.75 15.15
1st Grindlays Bank 351,800 32.00 31.00
Sitara Spinning 314,500 13.00 11.60


40.5% Rise in Pak-Suzuki Profits: Chairman Pakistan Automobile Corporation Javed Burki said that the Pak-Suzuki is making continuous strides as the company showed a net profit increase by 40.5 per cent during the 1989-90 financial year. Pak-Suzuki's income also increased due to income on deposits and WAPDA bonds, he added.

The profit, after taxation, during the year had been Rs. 143.606 (rupees in thousands), whereas it was Rs. 102.224 during the last year. Thus showing a net increase of 41.382 rupees he added. Javed Burki, a former captain of Pakistan cricket team said the sales revenue increased by Rs. 599.820 million (15.7 per cent) over the last year which consists of 9.3 per cent sales volume variances and 6.4 per cent price variances.

Javed Burki said the Pak-Suzuki's production, despite law and order problem, improved by 25 per cent. Out of the total production of 39,182 units during the year 26,178 units were produced at PSMCL plant against 20.923 units in the previous year, he added.

He said the production of Suzuki cars and van increased while a decrease of 959 units (7 per cent) over the last year was recorded in jeeps and pickups. Referring to `sales', the Paco Chairman said during the year 38,852 units were sold against 35,233 units in the last year and added cars accounts for 67 per cent of the total sales volume. The sale of cars and van increased by 26.7 per cent and 44.4 per cent respectively while that of pickup and jeep that decreased by 5.7 per cent and 48.9 per cent respectively, Burki added.

Talking about `deletion process' he said the indigenisation of components progressed satisfactorily during the year, which saw the completion of the 1st phase of deletion programme on June 30, 1990. He said all efforts are being made for the achievement of `deletion targets' as agreed with the Ministry of Industries for the second phase which is spread over two years from July 90 to June 92.

PIA Earns Rs. 684 Million Operating Profit: The PIAC Board of Directors approved the airline's annual accounts for the financial year 1989-90 showing an operating profit of Rs. 684 million and a net profit of Rs. 258 million. However, in view of the taxation provision in the accounts, the airline is showing a loss of Rs. 132 million.

According to the approved accounts, the operating revenue during the year increased to Rs. 16,412 million from Rs. 13,908 million in the previous year registering an 18 per cent growth. The operating expenditure, however, increased by 21.5 per cent due to increase in fuel, wages and aircraft maintenance expenses. The board noted with satisfaction that the airline had fully met all covenants prescribed by the financial institutions.

Meeting under the chairmanship of the Chairman and Chief Executive Air Marshal Farooq F. Khan, the Board of Directors also approved the revised budgetary estimates for the current financial year in light of the pressures arising from the Gulf crisis resulting in rapid escalation in costs and erosion in revenue and profit.

Investment of Rs. 3b in Oil, Chemicals Projects: Dr. Ghaith R. Pharaon, Chairman of Attock Oil Group of Companies, has said that the group plans to invest Rs. 3 billion ($ 150 million) in oil exploration, chemicals and construction materials in the next five years. Dr. Pharaon highly appreciated Government's keen interest in the growth of private sector and rapid industrialisation. He assure the Prime Minister of his continued and full support in speeding up the pace of industrialisation so that socio-economic objectives of higher growth and more opportunities for employment are achieved.

Asian Bank Approves Rs. 25m Equity Investment: The Asian Development Bank has approved an equity investment of Pakistani Rs. 25 million (about $1.16 million) from the Bank's Ordinary Capital Resources in Pakistan Venture Capital Limited (PVCL), the first venture capital company set up in Pakistan. PVCL, a public limited company with local private sector ownership, was established to provide risk capital and will play a catalytic role in the country. With the financial participation of PVCL aspiring entrepreneurs with innovative ventures will have access to risk capital. New companies will have the opportunity to establish sound financial structures with less reliance on debt. The success off such

ventures will help encourage others start companies to seek equity investment which in turn will stimulate the local capital market. Thus venture capital activity would leadd to increased economic output and exports.

PVCL has an authorized capital of Pakistani Rs. 200 million of which Rs. 100 (about $4.65 million) is expected to be subscribed and pauid by investors. After a contemplated public offering within one year a local private sector group will hold 30 per cent of the paid-up capital, ADB will hold 25 per cent and the balance of 45 per cent will be held by the public.

Pakistan Tobacco Co. Limited: PTC earned a pretax profit of Rs. 151.739 million on sales of Rs. 4057.588 million during the half year ending June 30, 1990. Domestic cigarette sales declined by one per cent when compared with the first half of 1989. This reduction is mainly attributable to increases in the availability of International cigarette brands, which are smuggled into Pakistan, and of locally manufactured products evading duties Despite this market decline, the company achieved a marginal increase in volume. The Board of Directors has declared an interim dividend of Re. 0.80 per share (1989: Rs. 0.80) in respect of the financial year ending 31st December 1990 to be paid to shareholders registered as at 9th September 1990. Payment of the dividend will be made on 22nd October, 1990.

Table : [Tabular Data Omitted]
COPYRIGHT 1990 Economic and Industrial Publications
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1990 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:stock market in Pakistan
Publication:Economic Review
Date:Nov 1, 1990
Previous Article:New chemical projects.
Next Article:Report of the National Manpower Commission 1989.

Related Articles
Role of Karachi Stock Exchange in capital formation.
Uncertainty persists.
Optimistic trends.
Equities on the rocks.
LEAD: Tokyo stocks rise in morning, led by banking, brokerage issues.
LEAD: Japan's key Nikkei index exceeds 13,500 mark as credit fears wane.
Promise of economic stability buoys Karachi stock exchange.
Bearish trend continues in LSE.
Bearish trend continues in LSE.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters