Nine months in to the fiscal, the top line growth for Attock Cement (ACPL) continues to mimic the trend of growth in industry dispatches. Albeit lower than the rate of growth in 1HFY15, the company’s top line managed to grow by 6.8 percent in 3QFY15 when compared to similar period of the previous fiscal.
Samba Bank had a comfortable quarter ending March 2015 with investments in PIBs serving as the guardian angel for the bank’s profitability. And it’s not just Samba, the same has been the tale of every other Pakistani bank of late; to park in high yielding sovereign securities that carry virtually no risk.
Whatever is the policy and whosoever is executing it; the objective is to have the infrastructure installed, whether it’s in power sector, mass transit or highways, irrespective of long term viability by March 2018.
Shrinking oil revenues amid already contracting gas revenues will mar the E&P sector’s performance for 9MFY15. And firms that are oil-heavy will be severely affected not because of a fall in crude oil production volumes, but the declining crude oil price environment. Attock Group announced its oil and gas exploration and production firm’s financial performance for 9MFY15 yesterday, and its financial statement depicted the same.
Earlier this month, this column flagged how Pak-China trade gap hit its highest in the eight months ending February 2015. To recall, exports to China had fallen 20 percent year-over-year whereas imports from China were up by 17 percent to $4.6 billion in 8MFY15. In this column we highlight the main reasons behind surging imports from China.
Where low oil prices have been a reason for the improvement in fuel margins and hence a surge in sales volumes for the oil marketing companies, it has also been the main source of concern for them in shape of inventory losses. The highlight of Attock Petroleum Limited’s (KSE: APL) financial performance for 9MFY15 has been the same – inventory losses marring earnings growth.
The response is excellent – both local and international investors have shown confidence in HBL’s management and in the capital market of Pakistan. But that’s no wonder because when you sell the goose that laid golden eggs, opportunists will grab it with both hands. The over whelming interest of investors to bid in the growing stock with lucrative dividend yield was quite expected.