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Mutual funds victoriously turned the corners in March 2014. After having a lackluster spell in February, the equity and income funds emerged as the stars of the month. The commodity funds, however, were the main losers owing to dwindling gold prices.
Before the new financial results cycle starts, lets have a look at the recent financial performance of listed telecom firms for some cue into the future. After all, 2014 is being called a game changer year for Pakistans telecom industry.
The power sector did not start FY14 with a bang. Though the partial resolution of circular debt in July 2013 did bring a respite in the sectors finance cost, it is apparent that improvements in the sectors financial performance greatly depends on a permanent removal of circular debt as well as improved plant efficiencies.
The government anticipates an increase in export earnings from the textile sector during the current fiscal year after the grant of the GSP plus status to Pakistan by the European Union. Is concentrating on the traditional US and EU market enough? As leading players like Bangladesh have total garment exports of around $22.50 billion last year, in just these two markets alone.
If the latest fertiliser numbers are anything to go by, farmers economy is surely looking up. The ongoing Rabi season has proved to be the best in terms of nutrient off-take in recent memory. The calendar year gone by was equally good, if not better, with urea off-take registering a massive rise of 37 percent year on year.
High volatility in the perishable food prices sub index drove the monthly hike in consumer price index at 0.96 percent to register the yearly increase of 8.53 percent in March 14. Perishable food index after a decline of 33 percent in the previous three months was up by 11 percent in March owing to high vegetable prices. Non-perishable food items increased by One percent in June and due to its high weight significantly lowered the impact of perishable to make the overall food index to soar by 2.2 percent.
Say what you like, condemn all you want, but in retrospect there seems to be a method to this madness that helped the currency recover from Rs106 against the dollar in mid-February to Rs98 by March 31.