CEMENT COMPANIES IN KSE

S.KAMAL HAYDER KAMI.
Research Analyst
, PAGE
July 14 - 20, 2008

The year 2008 has been a forgettable year for Karachi stock exchange (KSE). The stock market crashed from time to time due to which cement industry also performed poorly at Karachi stock exchange. But on an average the performance of cement industry was much better compared with other sectors. During the month of May stock market crashed nose dive consequently the performance of cement scrips was also not attractive as it lost drastically.

CEMENT COMPANIES

KSE 100 INDEX

% CHANGE

Jan-08

July-08

LUCKY

116.5

95.04

-22.6

ATTOCK

99.7

76.23

-30.8

D.G KHAN

94.7

64.51

-46.8

KOHAT

51.3

36.27

-41.4

DADABHOY

6.75

5.45

-23.9

The chart shows that Lucky Cement started the year with an open rate of 116.5 but decreased by 22.6% at 95.04 in July 2008. Similarly the Attock Cement started with an open rate of 99.7 and also decreased to 30.8% to 76.23 in month of July 2008. Dera Ghazi Khan Cement (DG.Khan) started the rate with 94.7 and in July it is recorded at 64.51, the rate of DG Khan Cement is decreased by 46.8% during these sixth months. The Kohat Cement rate also decreased by 41.4% as in Jan 08 it was recorded at 51.3 and now in July, it is recorded 36.27. In Jan 2008 Dadabhoy cement rate was recorded 6.75 and recently the rate is recorded 5.45 and it has declined by 23.9%.

LUCKY CEMENT

LUCKY CEMENT

MONTHS

RATE DURING FY08

MARKET CAP

1-Jan

116.50

29,379,481,250

31-Jan

115.00

30,696,356,250

1-Feb

116.55

30,419,812,500

29-Feb

130.15

34,265,087,500

3-Mar

130.10

33,777,843,750

31-Mar

138.75

36,806,656,250

1-Apr

139.75

36,437,931,250

30-Apr

142.80

37,715,300,000

2-May

143.20

36,569,618,750

30-May

103.50

28,563,018,750

2-Jun

108.45

29,498,000,000

30-Jun

98.91

25,792,313,750

1-Jul

97.93

25,536,840,000

7-Jul

95.04

25,031,160,000

The overall Performance of Lucky cement was badly affected in the month of May. In the first four months there was an increase in stock rates and market capitalization. But in the month of May the Karachi stock exchange went down sharply as it started from 14,956.82 but at the end of the month it settled at 12,130.51 which had a strong affect on cement industry in stock exchange. During the month of Jan-08 lucky cement's stock rates went down 1.3% to close at 115.00. However there was an increase in market capitalization by 4.2%. In Feb there was an increase of 10.4% and the rates increased from 116.55 to 130.15 and market capitalization increased by 11.2%. In March the rates increased by 6.23% to close at 138.75, the market capitalization of that month also increased by almost 8.2%. In April the stock rates slightly increased from 139.75 to 142.80 by 2.1% and the market capitalization increased by 3.3%. The month of May was highly poor as it lost 40 rates to close at 103.5 at 38.35% and the market capitalization also decreased by 28%. In Jun lucky cement lost ten more rates to close the month at 98.91, the market capitalization was also declined at 14.36%.

ATTOCK CEMENT

ATTOCK CEMENT

MONTHS

RATE DURING FY08

MARKET CAP

1-Jan

99.70

6,855,475,500

31-Jan

96.15

6,913,205,820

1-Feb

95.80

6,819,394,050

29-Feb

109.90

7,883,796,825

3-Mar

109.25

7,786,376,910

31-Mar

111.00

7,981,216,740

1-Apr

110.60

7,966,784,160

30-Apr

98.50

6,963,719,850

2-May

96.50

6,855,475,500

30-May

71.98

5,051,403,000

2-Jun

70.00

5,195,728,800

30-Jun

77.90

5,565,924,477

1-Jul

77.13

5,556,543,300

7-Jul

76.23

5,446,134,063

The Attock Cement in Karachi stock exchange lost almost 31% in stock rates and 26% in market capitalization this year, because of bad performance of Karachi stock exchange. In the month of May the Karachi stock exchange went down sharply as it lost more than 2800 points by the end of the month, due to which cement industry was badly affected in stock exchange. During the month of Jan-08 Attock cement's stock rates went down 3.7% to close at 96.15. However there was an increase in market capitalization by just 0.8%. In Feb there was an increase of 12.8% as the rates increased from 95.80 to 109.90 and market capitalization also increased by 13.5%. In March the rates increased by 1.57% to close at 111.00, the market capitalization of that month also increased by 2.4%. In April the stock rates decreased from 110.60 to 98.50 by 12.28% and the market capitalization decreased by 14.4%. The month of May was highly poor as Attock Cement lost around 25 rates to close at 71.98 at 34.06% and the market capitalization also decreased by 35.7%. In Jun, Attock cement recovered and increased 8 rates to close the month at 77.9; the market capitalization was increased by 6.65%.

CONCLUSION

Overall, the cement sector performed much better on the back of increasing exports despatches to different countries like India, Afghanistan, Middle East and other countries as well. However, the performance of Cement sector has been poor as it has lost shares because of bad performance of KSE in this year.