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Muddaser
22nd February 2005, 18:35
Pakistan becomes third largest cotton consumer

By Imran Ayub

KARACHI: Pakistan has become third largest country in cotton consumption during current fiscal, overtaking the United States and stakeholders foresee the year ending with over 14 million bales used by the industry.

The latest report of International Cotton Advisory Committee (ICAC) projects Pakistan as the third largest cotton consumer after China and India.

Industry players substantiate international body’s estimation. “We have so far lifted 10.9 million bales from the local market,” said Arif Saeed, chairman All Pakistan Textile Mills Association (APTMA). “Recent assessment suggests that we would touch 14.75 million bales mark by the fiscal end.”

He termed the BMR (balancing, modernisation and replacement) programme, basic reason behind the new surge of cotton consumption and the closure of industry in the US and Europe due to higher cost has also allowed the local industry to grab the world share.

The cotton mills consumption is on the rise for the last couple of year due to $5 billion BMR programme and expansion plan undertaken by the textile industry.

The industrialist said during current year, which is marked with implementation of WTO-regime, has a lot to offer to the $8 billion export industry and the increasing consumption of cotton bales in the mills is indicative of such trend. “The global textile industry now revolve around China, Indian and Pakistan,” said Anjum Saleem, a leading industrialist and former chairman APTMA. “In cotton consumption currently we maybe stand third but at the pace our industry is growing, we can over take India and I think it’s only a matter of time.”

Country’s textile industry contributed over 60 percent in total exports with around $8 billion textile products mostly to western countries.

Spinning, major arm of the industry, on an average exports around 525.13 million kilograms of yarn or 27.3 percent annually out of a total production of 1.92 billion kilograms. Analysts believe the post-quota regime coupled with bumper cotton crop has lifted hopes of all time high cotton mills consumption this fiscal and the figures may touch 15 million bales by the end of the year.

“I would not go with the initial estimation,” said Sajid Bhanji, research head at Arif Habib Securities. “The trend is much higher than the estimation suggests. So we predict that cotton consumption may touch 15 million bales figures and may go beyond.”

He said the increased cotton use is not only witnessed in Pakistan but industry in China and India is also experiencing the same trend amid quota-free regime.

The latest report from ICAC predicts the Chinese industry to top among other countries followed by India and Pakistan. Chinese industry is expected to consume 30 million bales this season and Indian is projected to use 16.5 million bales. However, industrialists see continued export of cotton would push them to import cotton, which may increase their production cost. They say the bales export on lower rates, is equivalent of providing cheaper raw materials to their competitors. “If the government does not ask TCP (Trading Corporation of Pakistan) to sell cotton to local industry, I fear the industry would face immense shortage of raw material,” said Mr Saeed of APTMA.

He said it does not appear sensible that the country, which produces around 14 million bales, imports another nine million to meet industrial needs just because that its production is exported to foreign countries.

Muddaser
22nd February 2005, 18:37
KSE 100-Index breaks 7900 barrier

KARACHI: Karachi Stock Exchange (KSE) registered hectic trading on Tuesday, as KSE benchmark 100-Point Index crossed the 7900 points barrier. The index was closed at 7926 with addition of 60 points.

The day was begun positively but the index was dropped 45 points due to selling of Pakistan Petroleum shares for profit taking. However hectic trading in OGDC and PPL stabilized the index as the market found bullish momentum.

Hectic trading was witnessed in cement sector due to upsurge in prices.

Banking sector good results and speedup privatization have maintained the bullish trend of the market, an analyst Khalid Iqbal said.

OGDC was leading the market with its business volume. OGDC share prices were closed at Rs. 99.90 with 10-paisa raise. National Bank shares with Rs. 4.15 raise and PTCL with 85-paisa slide were other two major players of the day.

MIG
22nd February 2005, 18:39
Way to go KSE !!!

and Pak should be the largets Cotton producer not consumer !!

Gasherbrum
22nd February 2005, 18:47
i consume two bowls (or is it bales) of cotton every morning, with some orange juice on the side.

MIG
22nd February 2005, 18:54
Thats not counted as fibre, is it ? if so , pls report your findings to the old peoples thread as such information can help many in need....

sajjad
22nd February 2005, 20:28
hehehe...@ MIG

the high cotton usage is more a sign of inefficiency than any great industry boom

as for the KSE....its been growing like crazy for the past several months. I'd be shortselling a few as soon as it hit that coveted 8000 mark though. atleast for a day or two.

and after that...well even the experts cannot say much. it may get very bearish very quickly very soon!!!

MIG
22nd February 2005, 20:38
Interesting - almost as if they want it to hit the 8000 to look good !

How does one go about in investing in the KSE ? Do you know of any funds/brokers etc ?

sajjad
22nd February 2005, 20:59
u need to have da contacts in da pakiland for that.
i know a guy naed anjum. but i dont contact him directly. i have friends who r doing the investments n stuff...its pretty proifitable

razzler
23rd February 2005, 05:21
Yaar the cement and banking investments were worthwhile for me three years ago. I really made some money of it.

razzler
23rd February 2005, 05:35
KSE ablaze in bullish frenzy

Index shoots up by 59.76 points

By our correspondent

KARACHI: Bullish flames continued to leap over the stock market on Tuesday. The index continued its move towards the 8000 mark, as it closed at 7926, up 60 points, although it remained erratic throughout the day.

It made its day low at 7822, down 44 points, after which it remained in the positive column for the rest of the day making an intra day high at 7961.

Trading volumes remained healthy, closing the day up 10 per cent at 854 million.

Analysts said that the market is seething in a ferment of bullish frenzy due to the continued inflow of foreign demand and the highly encouraging corporate announcements.

The bulls are firm in the saddle drawing strength and inspiration from the improving macro-economic indicators, increasing FDI, accelerated pace of privatisation and the above expectation performance of the corporate sector.

With the compete maintenance of peace and order during Muharram, the worst fears of the investors have been allayed and hence they have shed their reservations to take new positions in major stocks.

Cement sector scrips, refineries and oil and gas exploration companies remained active during the session. Fauji Cement ended the day on its upper circuit breaker, closing at Rs20.85 up Rs1.50 and most of the other cement sector scrips also closed the day in the positive.

The PPL continued its climb, going up Rs11.75 to close at Rs231.50.

Activity was also seen in the banking sector and the NBP after making a day high at Rs130.90, it closed the day at Rs127.50 up Rs4.15.

The market, although erratic, continues to be strong and hence analyst Arjumand B Habib expects it to continue its upward climb in the coming sessions.

The market opened on a negative note as PSO and POL share prices slipped.

However buying soon picked up as aggressive activity built in PSO thereby pushing the scrip’s price to Rs400. Askari Commercial Bank soon responded as the scrip price breached Rs120 level.

National Bank also reacted to the rumours of 20 per cent dividend and 20 per cent bonus circulating in the market towards closing. The cement sector also joined the rally and it seems that this sector would steal the limelight soon.

According to Ahmed Ashraf Sheikh, the badla decreased by 1.27 billion on Tuesday. The badla has reduced by 2.89 billion in the last few days as weak holders are getting opportunities to offload their holdings at higher levels.

There was badla decrease across the board except for SNGP where badla increased by 9 per cent.

The weighted average badla rate was 18 per cent and total badla investment stood at RS. 37.43 billion as compared to last day’s Rs38.70 billion.

The KSE-100 index continued its spectacular ascent on the back of cement and banking scrips. Fauji cement was the star performer at its upper circuit level.

Among other major gainers in the cement sector were DGK Cement, Lucky and Pioneer Cement as all these scrips respectively gained 0.8, 2.3 and 6.7 per cent.

The renewed rally in the cement sector can be attributed to rumours of dams and reservoirs construction announcement.

In the banking sector which has been investors’ boon for the last many days again showed across the board exceptional performance as National Bank, Askari Bank, BOP and MCB made smart increments of 3.4, 2.8, 1.8 and 1.6 per cent respectively.

The PSO witnessed wild swings, as at one time the scrip was as high as Rs401.90 but then the scrip closed at Rs394.20 level, posting an overall gain of Rs3.20.

The PPL again gained a massive Rs11.75 to close at Rs231.50.

However, the main blue chips remained subdued as PTCL, SNGPL, FFBQ and SSGC all lost 1.2, 0.4, 0.3 and 0.6 per cent respectively. Nishat Mills was another surprise performer as the scrip gained 7 per cent closing at Rs115.60.

OGDC also remained firm and posted a nominal increment of Rs0.10 to close at Rs99.90. The scrip is facing firm resistance at Rs100 level.

Analyst Tanvir Abid of Live Securities expected a happy correction in the market on the verge of 8000 point level.

He advised the investors to remain on the sidelines because of the enormous swings being seen in the market nowadays.

The KSE-100 index was up by 59.76 points at 7925.70 as against 7865.94 a day ago.

Of the 411 active companies, 201 posted gains, while 161 lost ground and 49 stood their ground.

The business volume stood at 853,535,580 shares, as compared to 777,188,040 shares a day ago.

The aggregate market capitalisation totalled RS2210.987 billion as against 2189.370 billion a day earlier.

Among the volume leaders were OGDC, up by 10 paisa at Rs99.90 on 103.289 million, National Bank, higher by Rs4.15 at Rs127.50 on 78.402 million, PTCLA, down by 85 paisa a t Rs67.80 on 72.522 million, Sui North, leaner by 30 paisa at Rs77.10 on 67.517 million, MCB, steadier by Rs1.35 at RS 86.20 on 50.599 million, Bank of Punjab, dearer by Rs1.75 at RS 97.90 on 42.289 million, Lucky Cement, gainer by Rs1.25 at Rs54.85 on 40.500 million, Fauji Cement, harder by Rs1.50 at Rs20.85 on 39.319 million, FF bin Qasim , off 10 paisa at Rs32.55 on 38.038 million and Pak PTA, steady at Rs11.95 on 34.081 million.

The major gainers included Siemens Engineering, up by Rs45.00 at Rs655.00 and Fateh Textile, higher by Rs30.70 at Rs440.25.

In the minus column, AKD Securities lost Rs25.20 at Rs479.15 and Treet Corporation bogged down by Rs10.00 at Rs349.00.

sajjad
23rd February 2005, 05:41
these fluctuations are astounding and show the very unstable nature of the KSE. MashAllah, it is doing exceptionally well at the moment by any and all standards but....what goes up must come down....and that down doesn't appear to be very far for the KSE in my mind.

razzler
23rd February 2005, 05:44
To me its gonna be done within the next two weeks.

sajjad
23rd February 2005, 05:48
naah, not quite. by short term im talking about a few months atleast

MIG
23rd February 2005, 10:50
Somehow, Pak economy and KSE, in particular never seem to follow any principles....dunno seem to get that idea...

sajjad
23rd February 2005, 20:59
yeah, well theres lotsa factors involved. cud write abt it perhaps ill post some financial article smetime but its really a number of things and theres always reason behind it going up and down. even though the KSE seems unlike that. it does follow the same pattern

oh btw KSE topped 8000 today