Elixir Securities Limited – The Bell

Karachi, July 30, 2015 (PPI-OT): FY15 Textiles: A year of dismal performance!

Textile exports declined by 1.8% YoY in FY15

As per the recently released trade statistics by PBS, Pakistan’s textile exports decreased by 1.8% YoY to USD13.5bn in FY15, against USD13.7bn in the same period last year.

Textile exports were also down in June

Total textile exports in June decreased by 3.8% MoM and clocked in at USD1.08bn, as both value added and yarn segment witnessed negative growths. The cotton and yarn segment declined by 8.8% MoM, while value added segment also slightly edged down by 1.6% MoM.

Global cotton prices remain depressed in FY15

As per USDA report, international cotton prices remained depressed during the fiscal year owing to oversupply and high global ending stocks.

Immediate textile outlook remains bleak

Elixir Securities Limited expect immediate textile outlook to remain bleak, with recovery likely coming in 2HFY15 as the global demand picks up.