Pakistan Textiles_Sector update Mar'17
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Contrary to the previous month, country's total exports during Mar'17 rebounded 9.9%MoM/3.4%YoY to US$1.8bn, where textile exports (~60% of total exports) posted marked recovery to clock in at US$1.064bn (up 7%MoM/6.2%YoY). The upswing in the textile exports in Mar'17 was primarily driven by 9.9%YoY/4.4%MoM growth in value added exports to US$775mn, while non-value added exports remained on a downward trend to read at US$289mn (down 2.5%YoY, though rising 14.5%MoM). On a cumulative basis, 9MFY17 textile exports still stand 0.77%YoY lower at US$9.29bn, largely contributed by 8.5%YoY decline in the low value segment diluting the impact of 2.5%YoY growth in the value added segment. Looking ahead, we expect textile exports to largely remain under pressure on the back of: 1) demand side bottlenecks emanating from depressed Chinese demand and slowdown in EU (post Brexit), 2) liquidity crunch faced by textile sector due to delay in tax and rebate refunds (~PkR300bn) and 3) continuous upward trend in int'l and local cotton prices, raising cost of doing business. Having said that, recent appreciation in regional currencies (ADXY index: + 2.5%CYTD) compared to slight depreciation (0.02%CYTD) in the PkR/US$ coupled with PkR180bn export package, may extend some support to the declining exports, going forward.
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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