Pakistan Cement :Local sales stage a comeback,(AKD Daily, Nov 04, 2019)
- Local sales for Oct’19 increased by 7%YoY where both regions witnessed contrasting trends as North increased by 17%YoY while South posted a decline of 29%. For 4MFY20, total dispatches increased by 5%YoY where major growth was witnessed in exports of 17%YoY followed by 3%YoY growth in local dispatches.
- The surprise rebound can be attributed mainly to the demand from private sector where housing schemes resuming/starting production played a part. We expect the demand from private sector to remain strong while a small part can be played by potential stocking up before CNIC conditions are re-imposed in Jan’20.
- After the recent increase in North, prices have sustained their ground where weakness has only been in some parts of the region. However, relaxation of axle load can provide some buffer for the players to reduce prices in the wake of upcoming capacity additions.
- After a disappointing 1QFY20, resurgence in dispatches is a ray of hope for the sector which can support prices thus rescuing the sector from posting heavy losses in 2QFY20 — potentially triggering buying activity in the sector in short term. However, we maintain our underweight stance on the sector with upcoming capacity expansions and seasonality expected to put pressure on prices.
Lucky Cement is a cement manufacturing and distribution company which is based in Pakistan. Co. is engaged in the manufacture and sale of Ordinary Portland, Sulphate Resistant, and Slag Cement. Co.'s brand names included Lucky Cement, Lucky Star, Lucky Gold, Chairman, and Lucky Sulphate Resistant Cement. Co. maintains production facilities in Pezu (Production capacity: 13,000 tons per day) as well as in Karachi (Production capacity: 8,000 tons per day). In addition, Co. is engaged in developing export markets for bulk loose cement from Pakistan to the Gulf Countries, African Markets, and Far East Region including Nepal & Sri Lanka.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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