Companies Results (July 2012 Update)

Colgate Palmolives
Profit/Loss (million): 471.927
EPS: 44.58
Bonus/Dividend: 140%, 20%B


Arif Habib Corporation Limited
Profit/Loss (million): (86.624)
EPS: 10.31
Bonus/Dividend: 20%, 10%B


Invest & Finance Securties Limited
Profit/Loss (million): 37.832
EPS: 3.63
Bonus/Dividend: 10%B


Fauji Fertilizer
Profit/Loss (million): 6459.685
EPS: 8.13
Bonus/Dividend: 50%


Arif Habib Limited
Profit/Loss (million): (22.050)
EPS: 8.13
Bonus/Dividend: 30%, 11.11%B

Atlas Honda
Profit/Loss (million): 350.453
EPS: 4.24
Bonus/Dividend: NIL

Honda Atlas Cars
Profit/Loss (million): (221.025)
EPS: (1.55)
Bonus/Dividend: NIL


Engro Foods Limited
Profit/Loss (million): 531.775
EPS: 1.36
Bonus/Dividend: NIL


HUB Power Co (HUBCO)
Profit/Loss (million): 3216.888
EPS: 7.08
Bonus/Dividend: 30%


United Bank Limited (UBL)
Profit/Loss (million): 4452.561
EPS: 7.62
Bonus/Dividend: 20%

Karachi Stock Exchange Weekly Analysis 28 July, 2012


The Karachi Stock Exchange (KSE) market has witnessed lackluster and flat. KSE – 100 index has reached 14,526 points by losing 38 points or 0.26 percent. While KSE – 30 index has reached 12,592.74 points.

The seasonal Ramadan factor, with reduced trading hours resulted in lower interest at the local bourse. Average volumes dropped to a 28 week low at 56mn shares, down 53.7%WoW. On the macro front, World Bank released a report in which it stated that Pakistan’s GDP may grow by 3.5% in 2013.

Following news have played vital role in Karachi Stock Market index movement:


  • Lucky Cement faced selling pressure at the Karachi Stock Exchange on Thursday on reports that importers in Africa have raised some issues in the quality of its cement
  • The Ministry of Water and Power, in an attempt to avert the fuel crisis, has pressed the Ministry of Finance to immediately release Rs45 billion for Pakistan State Oil (PSO), the oil marketing giant, which is facing the prospect of default on payments to international oil suppliers
  • Gas related woes continued for the fertilizer sector
  • Engro Fertilizers has approached banks to “re-profile” its debt and extend the loan repayment dates by about two and a half years, as the company is trying to reach an agreement with the government to shift its $1.1 billion Enven fertiliser plant from the Sui Northern Gas Pipelines Limited (SNGPL) network to non-network gas fields
  • Inflation is expected to ease down substantially in Jul12 as we anticipate the same to reside at 10%
  • News reports have indicated that the US is set to release US$1.12bn in pending Coalition Support Funds (CSF)
  • Indus Motors Company Ltd (INDU) is scheduled to announce its FY12 results on Aug 10, 2012. And FY12 earnings expected at PKR 55.26 per share
  • Fauji Fertilizer Company (FFC) announced its 1H CY12 earnings today (Jul25’12). The company posted profit after tax of PKR 10.3bn (EPS: PKR 8.12) against PKR 8.2bn (EPS: PKR 6.44), up by 26% YoY and above the market consensus. In 2Q CY12, the earnings propelled by 58% YoY to PKR 6.5bn (EPS: PKR 5.08) as compared to PKR 4.1bn (EPS: PKR 3.21) in 2Q CY11
  • Kot Addu Power Company (KAPCO) has seen its earnings decline by 13% YoY to PKR 4,354mn (EPS: PKR 4.95) during 9mo FY12. Higher finance costs continue to dampen company’s profitability as based on our estimates, KAPCO is likely to have incurred a negative spread of ~PKR 0.89 per share on account of penal markup income during 9mo FY12. However, the company has already announced PKR 3.75 per share as interim cash dividend so far
  • FX reserves of the country declined by US$ 166 million (1.11%) WoW to stand at the level of US$ 14.77 billion
  • Securities and Exchange Commission of Pakistan (SECP) approved various documents submitted by the stock exchanges under the Stock Exchanges (Corporatisation, Demutualisation and Integration) Act, 2012
  • PTCL has decided to offer 16,000 employees a Voluntary Separation Scheme (VSS) at a total cost of Rs 8-10 billion. The stock dropped 3.5% on the last trading day and underperformed the market by 4.6% WoW
  • PSO’s circular debt issue also remained in the limelight during the week. PSO receivables have swelled to a staggering Rs232bn while the company’s payables have surged to Rs181bn. However, due to expectations of release in payments to PSO, the stock outperformed the market by 1.3% WoW
  • Foreigners were net buyers of US$ 4.2 million during the week
  • In the hearing before the Supreme Court on the IPPs petition, the govt. outlined that a payment of PRs24bn would be made to small IPPs in three equal monthly installments (PRs8bn each) with the first tranche to be paid in August
  • The SBP data on Friday showed that borrowing for budgetary support by the federal and provincial governments stood at PKR1.198 tr during FY12 against borrowing of PKR 590 billion in FY11, depicting a healthy increase of PKR 608 billion
  • Despite energy shortfall, country's oil consumption declined by 3 % in FY12 to 19.1 million tons as against 19.7 million tons recorded in FY11 
  • The government continued aggressive borrowing from the commercial banks and raised PKR 360 billion through Treasury Bills auction on Wednesday


Rafhan Maize, Abbot Laboratories, Murree Brewery, Bata (Pakistan), EFOODS, DGKC, MEBL, PSO and Pak Cables were the major gainers while Media Times, International Steel Ltd, ICI Pakistan, HCAR, EPCL, UBL, P.T.C.L and Pak Suzuki were major losers in the benchmark KSE-100 this week.

Top performers of last week were: JSCL, HUBCO, Nishat Chun Power, PTCL, Maple Leaf Cement Factory Limited, Engro Foods Ltd., NIB Bank Limited, DGKC, ABL, PSO, NBP, FFC, Packages Ltd., Fauji Cement Company Ltd., Sui Northern Gas Ltd.

We see a window of opportunity in the market and recommend investors to build positions in names such as PPL, APL, PSO, OGDC, POL, Hubco and NCPL in the energy sector. Among banks MCB is our preferred play while Fatima Fertilizer and Lucky Cement also warrant a closer look given favourable operating dynamics and upside potential.

NOTE: The information posted in this blog (forum) is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

Karachi Stock Exchange Weekly Analysis 21 July, 2012


The Karachi Stock Exchange (KSE) market has witnessed bullish activity. KSE – 100 index has reached 14,564 points by gaining 232 points or 1.6 percent. While KSE – 30 index has reached 12,623.90 points.

Average daily turnover this week was seen at 122 million shares, up 28% WoW. We feel volumes could dry up a little given the Ramazan factor and political noise, however the downside should be limited due to the excitement on corporate earnings and payouts.

With the onset of the Holy month of Ramazan, seasonally lower activity could be seen; however given the  jam-packed nature of the upcoming result calendar, we feel that the bourses would keep bustling. For politics on the other hand, next week is critical; the initial hearing challenging the passage of the contempt of Court Bill is scheduled for 23rd July followed by Round II of the NRO saga (25th July) where the PM’s stance on writing a letter to Swiss authorities will be put forward.

Following news have played vital role in Karachi Stock Market index movement:

  • The kick start of the result season and SECP Chairman’s announcement regarding CGT rules and demutualization kept the investor interest intact Moreover, Standard & Poor's Ratings Services affirmed Pakistan’s sovereign long term rating and upgraded short term rating
  • During the week, SECP Chairman announced that the CGT rules for the stock exchanges would be finalized within the next two weeks and its collection would start after a month
  • An additional 70mn MMCFD) gas has come into the system of Sui‐Northern Gas Pipeline Limited (SNGPL) as gas supply from Manzalai gas field was restored after the completion of the Annual Turn‐ Around (ATA) of the field
  • As per latest data by SBP, foreign direct investment (FDI) showed a significant decline of 50.3% to US$812.6mn in FY12 from US$1.6bn in FY11. Sector wise, oil and gas exploration, petroleum refining, beverages, electrical machinery, automobiles, construction, and textiles sectors recorded higher growth in FDI while FDI in telecommunications, power and financial sectors witnessed negative growth mainly led by energy crises and circular debt issues
  • In last week, FPI’s came in strongly, clocking an inflow of US$ 10.8 million
  • The federal government raised PRs 51.2 billion through an auction of PIBs, vs. the target of PRs 30 billion. 10yr PIB attracted the highest bids (PRs34.8 billion) out of which PRs 9.1 billion was accepted, while PRs 5.4 billion were raised through 20‐yr bond
  • Moody's downgraded the corporate family rating of Pakistan Mobile Communications Limited (Mobilink) to B2 from B1 and the senior unsecured rating to Caa1 from B3
  • Moody’s Investors Services, a bond credit rating provider, has downgraded the local‐currency deposit ratings of five Pakistani banks (ABL, HBL, MCB, NBP and UBL) by one notch from B2 to B3, and maintained its negative outlook on the rated Pakistani banks
  • National Electric Power Regulatory Authority (Nepra) on Wednesday allowed an increase ofPKR1.14 and PKR0.52 per unit in tariff of Karachi Electric Supply Company (KESC) for April and May this year
  • Among the list of companies announcing their results were (1) Hubco with FY12 EPS 7.08 (+51% YoY) and final payout of PRs 3/sh (FY12 DPS PRs 6.0), (2) Engro Foods with 1H12 EPS PRs 1.35 (+370% YoY) driven by higher dairy volumes (+39% YoY) and ice‐cream margins and (3) UBL which posted 1H earnings of PRs 7.67/sh with profit growth coming from a considerable reduction in provisioning expenses (‐78% YoY). The bank also announced an interim payout of PRs 2/sh. 
  • While news flow related to MCB’s plan to open three branches in India triggered interest in the stock
  • The Engro Corp. has approached financial institutions to get rescheduling of its loans as the group is facing a liquidity crunch in the absence of cash flows from its fertilizer business

Abbot Laboratories, Murree Brewery, Jahangir Siddiqui & Co, Pak Reinsurance and Clariant Pak, ICI Pakistan, Askari Bank, Adamjee Insurance, P.I.A.C.(A), United Bank, Maple Leaf Cement, Pak Suzuki Motors Co. Ltd., Lafrage Pakistan Cement Ltd., Nishat Chunian Ltd., DGKC, were the major gainers while Ghani Glass, Colgate, Agritech Ltd, Dawood Hercules and Engro Corporation, Philip Morris Pak, International Steel, Feroz 1888 mills, NIB Bank, Engro Plymer were major losers in the benchmark KSE - 100 this week.

The top ten volume leaders were: JDWS, DAWH, EFOODS, LOTPTA, NIB, NBP, LUCK, FCCL, BAFL, NML.

We see a window of opportunity in the market and recommend investors to build positions in names such as PPL, APL, PSO, OGDC, POL, Hubco and NCPL in the energy sector. Among banks MCB is our preferred play while Fatima Fertilizer and Lucky Cement also warrant a closer look given favourable operating dynamics and upside potential.

NOTE: The information posted in this blog (forum) is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

Karachi Stock Exchange Weekly Analysis 15 July, 2012


The Karachi Stock Exchange (KSE) market has witnessed lackluster activity and a volatility ahead of corporate results. KSE – 100 index has reached 14,332 points by gaining 22 points or 0.2 percent. While KSE – 30 index has reached 1 2,402.31 points.

Following news have played vital role in Karachi Stock Market index movement:


  • The current standoff between the judiciary and the government over the contempt of court issue kept the investors cautious
  • Moody's Investors Service decision to downgrade Pakistan's foreign and local currency bond ratings (to Caa1 from B3) further dampened the investor sentiment
  • Government may ask Supreme Court's permission to treat three RPPs as IPPs
  • Government borrowed PRs 308 billion through T‐Bill auction
  • There are expectations of relaxations for financing rules, which would be the positive trigger to drive market in green zone
  • Foreigners maintained their interest in the market as they were net buyers of shares worth US$ 5.3 million
  • Result season kicked off this week. FFBL announced below consensus earnings of Rs644mn (EPS: Rs0.69) in 1H2012, depicting a decline of 82%YoY. Further disappointment came, as the company did not announce any cash dividend. Resultantly, the stock underperformed the market by 8.2%.
  • Pakistani cement manufacturers have reduced export price for India by 13% due to appreciation of the greenback versus the rupee
  • Despite some decline in urea prices on the international front, the federal government's decision to import 300,000 tons of urea for Kharif season will cost the national exchequer $135 million
  • The government is following a comprehensive package to provide relief to the consumers before upcoming election by ending load ‐shedding, reducing gas prices and freezing power tariff, say government officials
  • Pakistan made a record import of 178,199 tons of petrol in June 2012 to meet surging demand, figures of Oil Companies Advisory Committee (OCAC) revealed
  • Oil and Gas Regulatory Authority (OGRA) has sent a summary to the government for increasing petroleum prices


Colgate Palmolive, Thal Ltd, NIB Bank, Agritech Ltd, HCAR, Askari Bank Ltd, Pak Suzuki Motors, UBL, Lucky Cement, Sui Northern Gas Ltd, Sui Southern Gas Company Ltd, ABL, DGKC, Shell Pakistan, Adamjee Insurance Company, and Soneri Bank were the major gainers while Fauji  Fert Bin Qasim, Ibrahim Fibers, Grays Of Cambridge, Fauji Cement, ULEVER, ENGRO, EFOODS and Pace (Pak) Ltd were major losers in the benchmark KSE-100 this week.

Top 10 volume leaders of last week were: DAWH, EFOODS, JDWS, FFBL, NIB, LUCK, FATIMA, BAFL, FCCL, and FFC.

Trade deficit surged by 36%YoY in FY12 to US$21.3bn. Higher international oil prices augmented the import bill as imports rose by 11.1%YoY to US$44.9bn. While exports during the year declined by 4.7%YoY to US$23.6bn. Energy shortage coupled with lower cotton prices kept the overall exports relatively constrained. Remittances on the other hand increased to US$13.2bn in FY12 against US$11.2bn recorded last year. In June 2012, remittances were up by 1%YoY to US$1.1bn.

We look forward to corporate results infusing some excitement in the market given the payout‐intensive nature of the June quarter. Lucky Cement, UBL, Hubco and EFoods showcase the list of big ticket names due to announce their results next week. We see pockets of opportunity and recommend investors to build positions in stocks such as PPL, APL, PSO, OGDC, POL, Hubco and NCPL in the energy sector. Among banks MCB is our preferred play while Fatima Fertilizer, Lucky Cement and EFoods also warrant a closer look given favorable operating dynamics and upside potentials.

NOTE: The information posted in this blog (forum) is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

Karachi Stock Exchange Weekly Analysis 8 July, 2012


The Karachi Stock Exchange (KSE) market has witnessed a bullish trend because of improving Pak – US relations over NATO supply. KSE – 100 index has reached 14,310 points by gaining 509 points or 3.7 percent. average volumes surged by 33%WoW to 92mn shares

Following news have played vital role in Karachi Stock Market index movement:


  • NATO supplies have been reopened after the apology of US secretary of state Hillary Clinton
  • Inflation numbers are much better than expected
  • Robust Cement dispatches, cement volumes sales for June-12 is 3.03 million tons
  • Higher International oil prices has stirred interest in E&P sector leading to outperformance of OGDC and POL
  • According to Pakistan Bureau of Statistics (PBS), Consumer Price Index (CPI) clocked in at 11.3% for the month of June-12 as against 12.3% last month. The cumulative CPI figure for FY12 stood at 11% versus the projected target of 11-12%
  • OGRA (Oil & Gas Regulatory Authority) has notified 4 - 7% cut in gas prices effective from 1st July
  • The Government of Pakistan has raised the rates on NSS (National Saving Schemes)
  • As per latest reported numbers by PBS, CPI inflation during the month of Jun came in at 11.26% YoY
  • Media reports suggest that the Ministry of Petroleum & Natural Resources has made a proposal in ECC meeting held on 3rd July to make amendment in gas allocation policy 2005 and give second priority of gas allocation to the Power sector (currently given to Fertilizer sector) after domestic & commercial sectors
  • The sponsors of Aisha Steel Mills Ltd (ASML) have announced an Offer for Sale (OFS) of 10mn shares (3.73% of Ordinary Share Capital) at PKR10/share. Of the total offering, 9.5mn shares will be available to the general public whereas 0.5mn shares have been allocated to ASML employees
  • SBP (State Bank of Pakistan) sees US$ 630 million revenue from the auction for 3G licenses to support external and fiscal deficit
  • Major Kharif crops' production likely to decline due to shortage of water and prolonged power load‐shedding
  • According to official figures, all the collectorates of customs were able to jack up customs duty collection by up to 125% at PKR 347 billion against last fiscal collection of PKR 154 billion
  • Bank of China (BOC), the second Chinese bank after ICBC, is likely to make entry in Pakistan
  • Power ministry seeks release of PKR 10 billion for oil supply to step up production in light of the power crisis
  • Pakistan will receive an amount of USD 1.5 billion of CSF by December 2012
  • Cotton cess increased to PKR50 per bale replacing the current rate of PKR 20 per bale
  • KPT to receive PKR2.2bn from NATO for seven‐month hold‐up
  • The Finance Ministry urged the Ministry of Water and Power to revise the PKR 383 billion subsidy during a Cabinet Committee on Energy
  • The FBR (Federal Board of Revenue) is likely to miss its revenue collection target for tax year 2011‐12 by PKR 37 billion
  • Following the directives of the federal government, TCP has decided to quicken the process of urea import to meet the procurement target
  • With power sector’s payables touching a record PKR477 bn, the government is expecting to bring into use about 1,745MW of power generation capacity before Ramazan by suspending 650MW supply to KESC and re‐renting 185MW from defunct RPPs


K.E.S.C., Indus Motors, NetSol Technologies, Jahangir Siddiqui & Co, Lafrage Pakistan Cement Ltd., Maple Leaf Cement Factory Limited, MCB, Nishat Mills Ltd., PTC, Lucky Cement, Fauji Cement Company Ltd., OGDC, EFOODS, Atlas Honda Ltd., Arif Habib Corp and D.G. Khan Cement were the major gainers while Philip Morris Pak Ltd, Siemens Engineering, Bata Pakistan, Bestway Cement, Pakistan Tobacco, Tri Pak Films, Rafhan Maize Products, Packages Ltd., and E.F.U. Life Assurance were major losers in the benchmark KSE-100 this week.

We eye corporate results to induce some excitement in the market, given June is normally a payout laden quarter. From an investment perspective, we see value in accumulation of fundamentally strong names such as PPL, APL, PSO, OGDC, POL, Hubco and NCPL in the energy sector, and MCB among banks. Other than this, Fatima Fertilizer and EFoods also warrant closer attention given sound business profiles and attractive upsides.

NOTE: The information posted in this blog (forum) is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

Karachi Stock Exchange Weekly Analysis 1 July, 2012


The Karachi Stock Exchange (KSE) market has witnessed a bullish trend because of appointment of new Prime Minister of Pakistan and on the hopes of improving Pak – US relations over NATO supply. KSE – 100 index has reached 13,801.41 points by gaining 70.59 points or 0.5 percent. While KSE 30-share Index enhanced by 55.59 points, or 0.46 percent, during the week and closed at 11,922.13 points.  According to experts, the market may face profit-selling next week in the absence of investment-attracting news.

In the outgoing week, the average daily turnover recorded at 69 million shares against 67 million shares in the previous week. Market capitalisation, however, increased by Rs14 billion to Rs3,518 billion and foreigners sold net shares worth $5.6 million.

Following news have played vital role in Karachi Stock Market index movement:


  • Investors have gain confidence regarding political uncertainty on appointment of new Prime Minister of Pakistan and improving Pak – US relations over NATO supply
  • CCP (Competition Commission of Pakistan) has issued show cause notice to Fertilizer companies, because of increasing unreasonable urea prices. And as a result Fertilizer companies are underperformed during the week
  • PSO (Pakistan State Oil) has started additional supply of furnace oil to generate 1200 megawatts of electricity
  • Indus Motors and Honda are raising car prices to compensate for Euro II compliance. And they were also underperformed the market
  • Earning announcement season is getting started from 15th of July, Fertilizer and Cement stocks are expected to show positive results
  • Investors, however, may opt for buying oil and fertilizer stocks ahead of the beginning of earnings announcement season for the quarter ended on June 30
  • Provisional revenue collection crosses PRs1,800 billion
  • ENGRO has claimed the damage of Rs. 28.85 billion from SNGPL
  • Prices of oil and gas have been reduced by the government of Pakistan
  • Export of Cement has increased by 7.73%
  • ADB set to approve USD200 million tranche in November, while US seeks USD1.1 billion for Pakistan under Kerry Lugar bill
  • KESC receives PKR 5.46 billion against right issue of shares


K.E.S.C., Feroze1888, Rafhan Maize, Colgate Palmolive, HBL, APL, MCB, OGDC, KAPCO, Bata (Pak) Ltd, Abbot Laboratories, UBL, POL, Bank Al Falah, LUCKY cement, NRL, PPL and E.F.U. Life Assurance were the major gainers while Media Times Limited, Standard Chartered Bank, TRG Pakistan, Dawood Corporation, ENGRO Foods Ltd, Lotte Pakistan PTA, Pakistan Cables, Grays of Cambridge and Jahangir Siddiqui & Co were major losers in the benchmark KSE-100 this week.

Top volume leaders of last week were DAWH, JDWS, EFOODS, BAFL, FFC, PTC, KESC, SNBL, FATIMA, and HUBC.

From an investment perspective, we see value in accumulation of fundamentally strong names such as PPL, APL, PSO, OGDC, POL, Hubco and NCPL in the energy sector, and MCB among banks. Other than this, Fatima Fertilizer and EFoods also warrant closer attention given sound business profiles and attractive upsides.

NOTE: The information posted in this blog (forum) is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram