The Pakistan government’s intentions to lower the mark-up rates, encouraging cement dispatch data, a decrease in inflation figures and significant growing provincial export data have altogether renewed the investors’ confidence in cement sector scripts at Pakistan Stock Exchange (PSX).
Presently, Pakistan’s central bank SBP Policy Rate is 13.25 per cent per annum, making borrowing too expensive for manufacturers in the country. The cement industry, along with other stakeholders of manufacturing industries, have been appealing to the government to lower the interest rate as their profit margins turned negative in last financial results, due the high cost of sales, on account of high financing costs and other unavoidable factors.
Today, all major cement comapnies have shown a good number of traders/investors with good volume in stock and touching their upper limit.
