Pakistan Commodities_Commodities Uncertainty looms large ,(AKD Daily, Jun 03, 2022) - Corrected
AKD Daily
Pakistan Commodities: Commodities Uncertainty looms large
- Global coal prices are on the rise after previously reaching an all-time high of USD460/ton in March on the Richard Bay index. Although the prices came down after that to as low as USD252/ton, the current prices of the commodity currently stand at USD324/ton. The average price on the index for May’22 was USD320/ton, up 10%MoM and 215%YoY.
- International scrap prices have contracted 29%MoM in May’22, currently hovering around US$440/ton compared to FYTD/CYTD avg. of US$508/553/ton. Moreover, CRC-HRC spread has contracted, currently trading at US$82/ton as compared to a high of US$142/ton and an avg. of US$98/80/ton in FYTD/CYTD.
- The global scarcity of urea has kept the price of this chemical elevated at US$585/MT (-18.75%MoM/45%YoY), translating into local price of ~PkR9000/bag, a discount of ~80% from the local price which currently stand at PkR1,850/bag. Although, YTD average for the commodity stands at US$725/MT
- Global food prices have reached record highs since the war in Ukraine began, causing food and agricultural trade to be disrupted, further exacerbating the already tight supplies and resultantly fueling inflation. Russia’s invasion in the Eastern European nation not only reined havoc on food supplies, as Ukraine is one of largest grain and vegetable oil supplier, it also caused major grain exporting nations to halt external sales.
AKD Research
Nishat (Chunian) Limited. Nishat (Chunian) Limited is a Pakistan-based textile company. The Company is principally engaged in the business of spinning, weaving, dyeing, printing, stitching, processing, doubling, sizing, buying, selling and otherwise dealing in yarn, fabrics and made-ups made from raw cotton, synthetic fiber and cloth and to generate, accumulate, distribute, supply and sell electricity. The Company operates in four business segments, which include Spinning, which produces a range of yarn using natural and artificial fibers; Weaving, which produces a range of greige fabric using yarn; Processing and Home Textile, which is engaged in processing greige fabric for production of printed and dyed fabric and manufacturing of home textile articles, and Power Generation, which is engaged in generating and distributing power. The Company has a spinning production of approximately 75,000 tons of yarn, three million meters of greige fabric in weaving and four million meters of finished fabric per annum.
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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