Last update: Thu, 29 Sep 2016 04am

BR Research: All


This is a story of FBRs lazy taxation. Pakistans direct tax collection has remained rather flat at about 38-39 percent over total collections in the last five years, whereas its sales tax has increased its share from 39 percent in FY09 to 44 percent last fiscal year.
The 17-month low inflation does not come as a surprise; though initially there had been some concerns of flood related impact on commodity prices. The inaction on electricity and gas tariffs and the softening of global commodity prices were always destined to keep inflation under control.
Watchers of US politics won be surprised at Republicans gaining Senate majority and solidifying their House of Representative dominance in the November 4 mid-term polls. These mid-terms have in the recent past turned into a referendum on a sitting Presidents policies. Barack Obamas Democrats received a "shellacking" in the 2010 mid-terms. Same happened to Democrats in 1994 under the Bill Clinton presidency and in 2006 to Republicans under the George W Bush presidency.
Last month this column argued that fears of falling private sector credit supply were not visible at the end of August 2014, despite the fact that net loans to private sector businesses were in the negative in 2MFY15. Now, with latest data release that view has been reaffirmed as September 2014 saw the highest ever off take in any September ever - where a sum of nearly Rs48 billion was doled out on a net basis.
K-Electric Limited (KSE: KEL) had a fabulous FY14 where it posted 1.89 times increase in its earnings. And its journey to become a profitable private sector power utility continues with the announcement of 1QFY15 financial results.
Sliding oil prices threaten the returns of oil and gas exploration and production. And this has been the single most important factor for the market in forseeing shrinking earnings for the E&P firms in 1QFY15. Pakistan Oilfields Limited (KSE: POL), however, remained robust during the period.
Those hoping for a profitability turnaround at NetSol Technologies Limited (KSE: NETSOL) would be disappointed by the firm’s first quarter results this fiscal. Recall that after its all-time best financial performance in FY13, NetSol had a large fall in FY14: 30 percent slump in net revenues and a net margin of negative 34 percent. Now latest financials indicate that the Lahore-based software firm is yet to turn the corner.