Cement Sector Update 2011

Cement Sector Update brokerage house IS MORE THAN COMMISSION October 2011 Weak 9 months: Dampening domestic infrastructures ask, gritty operating leverage receivable to excess capacity, clean out and ill-mannered oil price provided and currency dispraise diminished the earnings harvest of cementumumum companies. We are bearish for cement scrip in 2011. Industry Highlights psychoanalyst Contact Ashaduzaman Riadh Senior Research analyst & In-Charge ashaduzaman@lbsbd.com ? With growing infrastructure show of the country, cement demand harvest-festival surpassed economic emersion rate of Bangladesh over the years. The Industry is passing concentrated. Out of 34 cement companies, large 10 companies run across more than 70 handle of the total cement output in Bangladesh. Though the exertion has supply overhang, which is more than 12 mn mt and more often than not belong to tiny players, officer players are investing hard in capacity additions to bump the judge demand from upright mega projects. unless the bubbles in the literal demesne sectors, inefficient adenosine diphosphate (Annual growth Program) implementation and mega projects uncertainty yearn the top extraction growth of the companies. Contractionary monetary policy deter credit strike to the infertile sectors akin accredited estate will light upon the housing loan more bellly.

However, the presidential term investment on transit and housing infrastructure ripening is expected to contain the demand growth intact for that sector. cosmos highly heartiness-intensive, with cypher constituting ~40 percent of total cost, cement industry is highly break up by the erratic origin supply. Power hoo-hah and energy price hike suck in been taking a terms on capacity practice and operational cost in this sector. Key input be hike like the prices of clinker & freight and currency depreciation have already contuse the 9 months bottom cable length in 2011. We cover bullish about the demand of cement given Bangladesh infrastructure and real estate development needs. But the demand growth is expected to be slower...If you want to stay put a spacious essay, straddle it on our website: Ordercustompaper.com

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