Pakistan Textile_11MFY22 textile exports up 28.3%YoY, (AKD Daily, Jun 21, 2022)
11MFY22 textile exports up 28.3%YoY
As per the data released by PBS, Textile exports for the month of May’22 registered a growth of 56%YoY to stand at US$1.64bn. Segment-wise, value and non-value added exports posted a growth of 53.9%YoY and 65.1%YoY in May’22 and 28.0%YoY and 29.4%YoY in 11MFY22, respectively.
In the value-added segment, knitwear and bed wear registered a growth of 50.8% and 55.5%YoY while readymade garments outperformed the segment with 65.1%YoY in May’22. During 11MFY22, readymade garments/bedwear/knitwear posted growths of 30.6%/21.7%/36.4%YoY, respectively.
International cotton prices have remained strong throughout Jun’22, hovering around USc163.6/Ib with an increase of 77%YoY and an increase of 69/28.6% FYTD/CYTD. Going forward, cotton prices are likely to sustain current levels as demand from China is picking up. Local cotton prices have sustained momentum, up 2.2%MoM in Jun’22 to currently hover around PkR22,230/40kg and witnessing an increase of 62.8/15.6% in FYTD/CYTD.
Uncertainty on the political and macro front, rising fuel and petroleum prices, and ex-pected shortfall of gas coupled with the removal of power subsidy at concessionary rates cast negative overtures on the sector. However, recent budgetary measures and robust apparel exports to US provide some respite to the textile players where NML (TP: PkR128/sh – 67% upside) and NCL (TP: PkR65/sh – 41% upside) based on a diversified energy mix and soaring PkR depreciation (+8.4%MoM) against US$ remain our top pick.
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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