Pakistan Fertilizers: Sector update Apr'17, (AKD Daily, May 29,2017)
​Recovering from the declining trend seen during 1HCY16, urea offtake during Apr'17 increased by 17%YoY/21%MoM to ~249k tons vs. 213k tons in Apr'16 largely on account of subsidy continuation. However, cumulative fertilizer offtake growth during Apr'17 remained on the lower side clocking in at ~449k tons vs. 423k tons in Apr'16, increasing slightly by 6%YoY, while declining 2% on monthly basis. DAP sales on the other hand registered a decline of 38%MoM/9%YoY to 95k tons in Apr'17. Furthermore, imported urea continued to remain at negligible levels (2k tons) despite being available at a significant discount to local urea. On a cumulative basis, total fertilizer sales posted growth of 18%YoY to 1.98mn tons during 4MCY17 where urea offtake posted a decent recovery of 14%YoY to stand at 1.12mn tons. Slower fertilizer offtake alongwith industry's weak pricing power & rising inventory level (urea inventory standing at 1.67mn tons), we maintain our Marketweight stance on the sector until a sustainable improvement in the demand scenario.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.