Pakistan Cement: Monsoon restricted cement growth in Aug 2020; Local Sales to decline by 27-33% MoM
- The overall cement sales in Aug-2020 is expected to fall by 25-29% MoM wherein, local sales is expected to witness drag of 27-33% MoM due to i) slower activities in start of the month amidst Eid Holidays, and ii) record rain during the month due to prevailing monsoon season in the latter half of the month.
- Cement during on YoY basis is likely to witness increase of 4-8% with local sales to rise in range of 2-6%.
- Cement sales in north and south during first two days of the month remained almost nill, while 3.6k tons of cement were exported during same time vs. normal average of 25k tons per day.
- Due to heavy rain in south region in last week of Aug, production numbers of south based plants were also affected. However, as per our channel checks, production has resumed from today.
- In 2MFY21, local cement sales increased by 19% YoY, similarly exports increased by 36% YoY, taking total sales growth to 22% YoY.
Cement prices during Aug-2020 averaged at Rs528/bag in North, up by Rs8/bag compared to last month. The South region price remained flat at Rs614 per bag.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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.