Pakistan Cement_Surprisingly strong sales in Jun’22, up 59%MoM, (AKD Daily, Jul 05, 2022)
Surprisingly strong sales in Jun’22, up 59%MoM
Local cement sales had a surprisingly stronger month given the current fragile macro en-vironment, increasing by 7%YoY for Jun’22 as seasonal demand picked up amid start of summer season where private sector demand led the way after two unexpected slow months.
Overall, cement dispatches for FY22 stood at 52.9mn tons decreasing by 8%YoY where local dispatches declined by 1%YoY to 47.6mn tons largely due to slow 2HFY22 where change of regime and political unrest in the country caused the cement demand to sup-press. Exports on the other hand stood at 5.25mn tons for the year, decreasing by 43.5%YoY.
Richards Bay coal prices have reached an all-time high of US$460/ton during FY22, and avg. at US$327/ton in Jun’22 vs US$320/ton in May’22. On YTD basis, coal prices wit-nessed an increase of 191/149% to US$213/ton and US$276/ton in FYTD and CYTD, re-spectively.
High coal prices coupled with PkR depreciation and rising fuel costs have kept the cement sector under pressure. However, we believe once the clarity emerges over the IMF pro-gram and coal prices started to ease off, the cement sector is expected to lead the rally. Therefore, we continue to advocate for LUCK, MLCF, and FCCL with the companies having low leverage on their balance sheets in an increasing interest rate environment.
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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