That cement sector is once again witnessing a honeymoon period has been well established by the performance of producers small and large in the previous months. But, as if the evidence was still not enough, the stellar performance of Fauji Cement in the second quarter is right in the face of the sceptics, despite predictions of a slowdown.
Economists, analysts and market participants are all puzzled by the recent improvement in rupee-dollar parity in the face of falling SBP liquid reserves. The movement is counterintuitive and defies basic economic principles.
After a disappointing first quarter, NML seems to have upped their game. Recall that the firm had unexpectedly reported a decline in volumetric sales of all its segments-except weaving-during 1Q FY14 and that slow demand of yarn from Chinese buyers had suppressed all expectations of a lucrative second quarter.
It wasn just the direct equity investors who enjoyed the soaring performance of local bourse in previous months. Investors with "indirect" exposure in the equity market--particularly the mutual fund investors--also appeared to have hit the jackpot, as evident in their 1H FY14 financials.
The oil and gas Explora-tion and Production (E&P) sector has been relatively immune to the liquidity crisis when compared to the downstream sector of refining and oil marketing companies. And partly due to the same reason, the E&P companies have continued to be amongst those that make some of the healthiest profits in the country, even amid dwindling production statistics over the years.
There is a certain air about those who go against the tide. Same is the case with the businesses who continue to grow despite a stagnant demand. The announcement of Kohat Cements half-yearly results paints a similar picture, with sales volume posting year-on-year growth of 5.2 percent, at a time when growth in industry dispatches is stagnant at a paltry 1.1 percent.