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KSE-100 and KSE-30 Indices Composition

KSE-100 and KSE-30 Indices Composition:

KSE 100 is based on the companies with highest market capitalization whereas KSE 30 is based on the free float of the companies. That is the main difference.

Please See For KSE-30 Index:

http://en.wikipedia.org/wiki/KSE-30_Index

And For KSE-100 Index See:

http://en.wikipedia.org/wiki/KSE_100_Index

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Important Business News of Today (May 11,2 015-Monday):

Important Business News of Today (May 11,2 015-Monday):

1. Legitimacy of 2013 elections on the line;
2. Pakistan, IMF complete first round of deliberations, final round of discussions today in Islamabad;
3. Pakistan wants IMF to relax budget deficit cut;
4. Government required to report by May 22, 2015 on progress on 27 conventions to EU as part of the commitment under the GSP Plus status;
5. Foreign aid inflow estimated to be highest ever in next financial year;
6. Government to miss revised Rs2.69trn tax target despite 5 mini-budgets;
7. Trade Deficit widens by 19%MoM but declines by 14%YoY in April 2015, expands by 11%YoY in 10MFY15;
8. State could impose 10% tax on remittances;
9. 30% rise in PSDP mooted; federal budget likely to be announced on May 29th;
10. Privatization Commission pre-qualifies 8 bidders for National Power Construction Corporation;
11. Akbar Associates emerges as successful bidder for second LNG terminal;
12. SECP advises bourses to put in place robust internal mechanism to verify, dispel or confirm any news item or rumors which may impact investor confidence and the functioning of the market;
13. SBP announces de-scheduling of KASB Bank with immediate effect,
14. Bank Islami to continue moratorium on selected accounts of KASB Bank;
15. OCAC seeks increase in petroleum products’ prices in accordance with recently imposed Regulatory Duty;
16. Pakistan Banks Association (PBA) seeks KIBOR-based compensation on advance tax payments made by banks;
17. Elengy CEO offered top slot in Pakistan State Oil; and
18. K-Electric interested in power generation from solid waste

Pakistan’s Financial Markets – Case of the ‘Invisible Foreign Investor’

Pakistan’s Financial Markets – Case of the ‘Invisible Foreign Investor’
In recent months we saw the Pakistani Stock Markets first rise and than fall without any apparent justifiable reason. Most analysts and gurus attributed these erratic market movements to foreign investment. For many years it  has been contended that the foreign investors are a mere figment of our imagination, especially when many try to equate foreign investment to the mysterious and invisible ‘Gora’. Perhaps suggesting that this foreign investment originates from western or developed countries and economies. Well here is an essential question that everyone should ask from anyone who claims that foreign investment drives the market; Who is this ‘Gora’?

There should be a simple answer to this question; the names of foreign investors, institutions, governments or entities. No one is willing to answer this simple question. Its not a secret, it shouldn’t be. The SECP must know who is driving our market and shouldn’t hesitate in naming these foreign investors. If the investment is originating from the west, these investors would have to disclose their investments in Foreign countries like Pakistan.

Certainly there Identity can and should be disclosed to our own market stakeholders. The second issue that concerns the market is the tune of investment these foreigners make in the Pakistani market. A simple assessment of the situation is that a few million dollars a week should not make a huge impact on our multi-billion rupee market.

If the data, statistics and logic of this entire narrative is believed to be true than anyone can assume that this entire ‘Foreign Investor’ theory is nothing but a concocted story. Therefore it is high-time that either the regulatory bodies or analysts come forward and release the entire […]

By |May 10th, 2015|Articles|0 Comments

Rules Of Shariah Compliant Equity Investment

Rules Of Shariah Compliant Equity Investment.

1: Day trade is Un-Islamic.
2: GOLA or Short selling of stocks (selling before having stock in your possession) is Un-Islamic.
3: Future trade in all respects is not Shariah compliant.
4: Shares bought under Badla/CFS etc are Un-Islamic.
5: Shares bought even with your own money (Delivery) cannot be sold for two days after buying if shariah compliant trading is in focus (Due to T+2).
6: Most importantly we need to know the financial position of the company because of debt to equity ratio (how much leverage company is enjoying) if exceeds a certain level it will make the share non shariah compliant.
7: Earning of company through interest (i.e cash is kept at bank and interest income is earned) should not exceed a certain level of total earning.
8: For risk averse investors the investment in shariah compliant mutual fund or Islamic Bank rather than non-compliant fund or conventional bank will ensure that the profit is Halal.
Disclaimer: Kindly do your own research to confirm all above rules as these are all my own views based on my research and can be mistaken because I am not a shariah expert.

By |May 10th, 2015|Articles|0 Comments

10 Points To PONDER When Investing In Stock

10 Points To PONDER When Investing In Stocks:

In this Article we will discuss what measures one should take when investing in Stocks.Do read it and share your valuable feedback with us.

1. DIVERSIFY:

The expression, “don’t put all your eggs in one basket” is meaningful when it comes to money investing. Don’t put all your money in one stock. Also, buy fixed income securities (i.e. bonds) and stocks. Don’t pick only one type of investment.

2.DO YOUR HOMEWORK:

 

Obtain and analyze as much information as possible before making your investment decisions. This will alert you of any problems a company may have, or what to expect from your investment.

3. SET GOALS AND LIMITS:

Determine the price (high target price or low stop-loss price) at which you’re willing to sell. Analyze interest rates to decide what return you want.

4. DON’T GAMBLE WITH MONEY YOU CAN’T AFFORD TO LOSE:

The less you can afford a loss, the more conservative you should be in your choice of investments.

5. DON’T BE GREEDY:

Don’t expect your broker to recommend stocks that will double in value within a few months. If you do have a stock that goes up considerably — i.e. 50% or more – Sell and Book Your Profits.

6. INVEST FOR THE LONG-TERM:

Company stock prices will fluctuate, sometimes unfavorably, in the short-term. Invest for the long-term, but keep your current financial needs in mind. You never know when you might need some of that money.

7. AVOID ACTING ON IMPULSE:

An impulse buy, whether at the mall or on the stock market, is still an impulse buy. Stick to your plan. Don’t buy a stock on a hot rumor; you’ll get burned 90% of the time.

8. GO FOR VALUE STOCKS:

Go for Value Stocks having Healthy Balance Sheet […]

By |April 23rd, 2015|Articles|0 Comments

Why invest in stocks? By MM Hassan

Why invest in stocks?

          Why look at the stock market,However, investment in the financial markets also has its drawbacks, you should consider include.

 

To earn money .See their well-paid investment is one of the main concerns of investors.With actions, they are paid in two ways: by gains from rising share price;and the dividends that may be distributed by companies, more or less regularly, according to the profits made ​​by the company.For its part, the bond investor is paid in the form of interest paid on a regular basis, usually annually.To invest in these products, the individual must follow economic news, the markets and companies.But the return on invested capital may be more important than savings accounts or traditional bank accounts.

 

 To have your winnings whenever you want.  You can buy and sell their stocks at any time during the trading day. In case of emergency or need cash, this is a significant benefit to the investor. The shares and listed securities are liquid assets, as opposed to investments like real estate, where buy and sell requires time.

To make tax savings  : Investments traded or certain types of close financial investments can benefit from favorable tax provisions for the investor. This is the case for example of the Share Savings Plan.These benefits vary according to the different countries of World and their provisions may change over time. They should not be the first criterion to be taken into account to invest.

 

To diversify your investments and limit the risks . Generally more active can provide potential gains, the more it has risks. Thus, actions can provide important gains, but the risk of loss is real. In the creation of a portfolio, the basic rule is […]

By |April 16th, 2015|Articles|0 Comments