Last update: Mon, 16 Jan 2017 05pm

BR Research: All


When it comes to proficient fund management, National Investment Trust Limited (NITL) - the mutual fund industry tycoon - certainly passes the test with flying colours. Its success is penned down all over financial statements and its performance during 1HFY15 has further reinforced the sentiment.
In yesterday's piece on CPI rebasing, this column flagged the urban bias that exists in the measurement of inflation in Pakistan. In today's coverage, we will shed light on some of the items that need to be removed or included in the basket of goods & services tracked for the purpose of measuring inflation.
Engro Corporation (ENGRO) announced its full year CY14 financial results yesterday, with the polymer business wiping off the tremendous improvement in flagship fertilizer and food businesses, taking the yearly profits down 6 percent year-on-year.
Kot Addu Power Company Limiteds (KAPCO) move into FY15 can be summed up as a transition from year of overhauls to a year of recovery. FY14 was a year of overhauls for the independent power producers, and as expected KAPCO was seen to get back to its efficiency in 1HFY15.
PICIC AMC made a poor start in FY15. Recall that dwindling top line during the first quarter dragged the bottom lines of PICIC Growth Fund and PICIC Investment Funds in red zones. Capital losses and unrealized depreciation on re-measurement of investments remained the culprits. However, better performance in second quarter of FY15 helped to recoup the losses, thus making the funds profitable yet again.
Kohinoor Energy Limited is a joint venture between Toyota Tsusho Corporation Japan and Saigols Group of Pakistan. FY14 was fueled by higher fuel savings for Kohinoor Energy. These fuel savings emanated from better plant utilization and efficiency, and that were the prime reasons for the continued growth in Kohinoor Energys earnings in all the quarters of FY14.
Pakistan’s Consumer Price Index (CPI) is in the process of being rebased. Consultations for rebasing have begun and the plan is to change its base from 2007/08 to 2015/16; and thereafter every ten years. Before we briefly highlight some of the many pressing concerns that the rebasing exercise should take into account, allow us to bust a myth.