AMZ INVESTMENTS FINAL REPORT

8/7/2019 AMZ INVESTMENTS FINAL REPORT

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AMZ INVESTMENTS

AMZINVESTMENTS

2010

KARACHI STOCK EXCHANGE PROJECT

REPORT

Alveena Abdul Razzak (8642)

Zain Mundia (9277)

Mehwish Jawed (4692)

F I N A N C I A L M A N A G E M E N T


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KARACHI STOCK EXCHANGE PROJECT 2010

AMZ INVESTMENTS

AMZ SECURITIES

WEEKLY OVERVIEW

WEEK 1

(FROM 27th SEPTEMBER 2010 -1st OCTOBER 2010)

On Monday 27th September 2010, the KSE 100 index opened at 9905.48

points. It had gone up to a high of 9958.12 points and closed at 9936.79

points. It showed an improvement of 31.27 points.We had a balance of Rs. 500000 and we started trading by:

y buying 450 shares of Attock Petroleum @ Rs 318.43 per sharey Thus totaling our investment in this share to rupees 143293.50.On Tuesday 28th September 2010, we bought 500 shares of PSO(Pakistan

state oil)@ Rs 267.50 per share and invested Rs 133750 in PSO as the change

in per share price of PSO was Rs 0.67.On Wednesday 29th September 2010,we did not buy or sell any of the

shares as the state bank of Pakistan increased the discount rate from 12.5% to

13% and there was a judicial issue in the as well making the political and

economic conditions of the country weak thus increasing the chance of a

market crash down.

On Thursday 30th of October 2010,we sold 450 shares of Attock

petroleum as its per share price had gone up by Rs 31.21.the profit we earnedby selling the shares of Attock petroleum amounted to Rs14044.5.we also

sold the shares of PSO(Pakistan state oil) as its per share price increased by

Rs 3.03 and the profit amounted to Rs 1515.


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AMZ INVESTMENTS

On Friday 1 October 2010, we bought 50000 shares of TRG Pakistan @ 4

per share and our investment amounted to Rs. 200000.And we also bought

1000 shares of lakson tobacco @ Rs270.64 per share and our investment in

lakson tobacco amounted to Rs 270640.

Thus The KSE 100 index increased to 10106.67 points and declined to

10002.43 points in last week and closed at 10048.43 points. This week we

invested in TRG Pakistan and Lakson tobacco and earned a profit of 15559.5

by selling the shares of Attock petroleum and PSO.


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AMZ INVESTMENTS

The KSE 100 index opened at 9905.48 points. It had gone up to a high of 9958.12points and closed at 9936.79 points. It showed an improvement of 31.27 points.

We had a balance of Rs. 500000

bought 450 shares of Attock Petroleum @ Rs 318.43 per share total Investment : Rs.143293.50 in Attock Petroleum

Monday 27th

September 2010

bought 500 shares of PSO(Pakistan state oil)@ Rs 267.50 per share

invested Rs 133750 in PSO as the change in per share price of PSO was Rs0.67.

Tuesday 28th

September 2010

did not buy or sell any of the shares as the state bank of Pakistan increasedthe discount rate from 12.5% to 13% and there was a judiciall issue making the

political and economic conditions of the country weak thus increasing thechance of a market crash down.

Wednesday 29th

September

2010

sold 450 shares of Attock petroleum as its per share price had gone up by Rs

31.21.the profit we earned by selling the shares of Attock petroleum amountedto Rs14044.5.

sold the shares of PSO(Pakistan state oil) as its per share price increased byRs 3.03 and the profit amounted to Rs 1515.

Thursday 30thOctober 2010

bought 50000 shares of TRG Pakistan @ 4 per share and our investmentamounted to Rs. 200000.

bought 1000 shares of lakson tobacco @ Rs270.64 per share and ourinvestment in lakson tobacco amounted to Rs 270640.

Friday 1st

October 2010

Thus The KSE 100 index increased to 10106.67 points and declined to 10002.43 points in last week andclosed at 10048.43 points. This week we invested in TRG Pakistan and Lakson tobacco and earned aprofit of 15559.5 by selling the shares of Attock petroleum and PSO. the KSE 100 index opened at9905.48 points. It had gone up to a high of 9958.12 points and closed at 9936.79 points. It showed animprovement of 31.27 points. Our remaing balance after investment was Rs.44919.8


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AMZ INVESTMENTS

AMZ investments

WEEKLY OVERVIEW

WEEK 2

(FROM 4th October 2010 - 8th OCTOBER 2010)

On Monday 4th

October 2010, we had a balance of Rs. 44919 and westarted trading by:

Selling shares of lakson tobacco @ Rs 313 per share and the profit

amounted to Rs. 42360.

On Tuesday 5th October 2010, we bought 188365 shares of atlas bank @

Rs.1.90 per share and invested Rs 357893.50.

On Wednesday 6th October 2010,we sold 50000 shares of TRG at Rs

4.36 per share which totaled to the amount of Rs 218000 and earned a profit

of Rs 18000 and bought 70000 shares of summit bank the per share price was

Rs 2.68 and the investment amounted to Rs 187600

On Friday 8th October 2010, we sold 188365 shares of Atlas bank at the

rate of Rs2.35 per share and earned a profit of Rs 79113.3.we bought 1000

shares of lakson tobacco at the rate of 368 and invested Rs 368000 in lakson

tobacco

Thus The KSE 100 index closed at 10260 points in last week. And showed

improvement of 68.8o points.


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AMZ INVESTMENTS

AMZ INVESTMENTS

WEEKLY OVERVIEW

WEEK 3

(FROM 18th OCTOBER 2010 -22nd OCTOBER 2010)

On Monday 18th October 2010, the KSE 100 index opened at 10484 points.

It had gone up to a high of 10537.35 points and to a low of 10431.84. It showed

an improvement of 52.55 points.

We had a balance of Rs. 99483.30 and we started trading by:

y selling 70000 shares of summit bank @ Rs 2.97 per share as its pershare price increased from 2.68 to 2.97 and the profit amounted to

Rs.20300

y we also sold 1000 shares of lakson tobacco but unfortunately faced aloss of 17940 as the per share price decreased to Rs. 350.60 and the loss

amounted to Rs. 17940

y We bought 2500 shares of national refinery @ Rs. 205.04 and theinvestment totaled to Rs. 512600.

On Tuesday 19th October 2010, we purchased 1000 shares of attock

refinery @ Rs .92.46per share and invested Rs.92460.

On Wednesday 20th October 2010, we did not trade at all as we had

bought shares of national refinery and attock refinery on 18 th and 19th of

October.


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AMZ INVESTMENTS

On Thursday 21st of October 2010, we sold 2500 shares of national

refinery as its per share price had gone up by Rs.6 per share and the profit we

earned by selling the shares of national refinery amounted to Rs. 15000.

On Friday 22nd October 2010, we sold 1000 shares of attock refinery @

Rs. 99.49 per share and our profit amounted to Rs. 7040.And we also bought

1000 shares of lakson tobacco @ Rs270.64 per share and our investment in

lakson tobacco amounted to Rs 270640.

Thus The KSE 100 index closed at 10652.48 points and declined to

10553.54 points in this week and showed an improvement of 93.74 points.

The markets total volume was 160344624.the overall profit that we earned

this week is 24400.


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AMZ INVESTMENTS

The KSE 100 index opened at 10484.39 points. It had gone up to a high of 10537.35points and to a low of 10431.84. It showed an improvement of 52.55 points.

We had a balance of Rs. 99483.30

sold 70000 shares of summit bank @ Rs. 2.97 and earned a profit of Rs.20300

sold 1000 shares of lakson tobacco @ Rs. 350.06 and faced a loss of Rs. 17940as the price declined by 17.94

bought 2500 shares of national refinery @ Rs. 205.04 and invested Rs. 512600

Monday 18thoctober 2010

bought 1000 shares of attock refinery @ Rs 92.46 per share and invested Rs.92460

Tuesday 19th october2010

did not buy or sell any of the shares as we had bought shares of attockrefinery and national refinery on 18th and 19th of october

Wednesday 20thoctober

2010

sold 2500 shares of national refinery as its per share price had gone up byRs 6.the profit we earned by selling the shares amounted to Rs. 15000

Thursday 21stOctober 2010

sold 1000 shares of attock refinery @ Rs. 99.49 per share and the profitamounted to Rs. 7040

Friday 22nd

October 2010

Thus the KSE 100 index closed at 10652.48 points . it showed animprovement of 93.74 points. the market 's volume was 1600344624. The overall profit that we earned this week is Rs. 24400.


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AMZ INVESTMENTS

AMZ INVESTMENT

(FROM 25TH OCTOBER - 29TH OCTOBER)

WEEKLY OVERVIEW

WEEK 4

We started the week with a balance of 464763.30:

On Monday October 25th 2010,

y We sold 70000 shares of summit bank @ Rs.3.14 and earned a profit of Rs. 32200y We bought 10000 shares of Nishat power @13.40 and the investment amounted to

Rs. 134000.

On Tuesday October 26th 2010,

We bought 100000 shares of Japan power @ 1.84 and the investment amounted to Rs.

184000.

y We bought 25000 shares of Nishat chun power @12.72 and the total investmentwas Rs. 318000.

On Thursday October 28th 2010,

y We sold 100000 shares of japan power @ Rs. 1.70 and loss incurred on selling theseshares amounted to

(Rs. 14000)

y We bought 9500 shares of Nishat chunia @ of Rs. 21.25 and the investment totaledto Rs. 201875

y We sold 10000 shares of Nishat power @ Rs. 15.97 and earned a profit of Rs. 25700On Friday 29

th

October 2010,

We sold 25000 shares of Nishat chun power @14.68 and earned a profit of Rs.

49000

The total profit amounted to Rs. 88625 i.e. 17.73%.There were 9500 shares of Nishat chunia

in balance. The market closed at 10598.40 points and the change was negative as it

decreased by 36.59 points although it went to a high of 10660.72 points because:


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AMZ INVESTMENTS

y For the past 3 weeks the market has gone up by 400 points approximately due towhich profit taking took place and the local and foreign investors sold the shares

to gain profits.

y The reserves of Some of the companies like National bank, POL and Nishat powerwere not according to the market expectations so the investors took the profittaking.

y There is a resistance level of the market which was 10700 -10750 , as the marketcould not break the resistance level and so the KSE 100 INDEX decreased by 36.59

points.


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AMZ INVESTMENTS

AMZ INVESTMENT

(1ST NOVEMBER-5TH NOVEMBER 2010)

WEEKLY OVERVIEW

WEEK 5

On Monday 1st November 2010,

y The KSE 100 INDEX closed at 10538.27. it went to a high of 10667.09 and to a low of10528.85. Thus the market declined by 60.13 points and showed no improvement.

We started the week with Rs. 543388.3 balance at hand.

y We sold 9500 shares of Nishat chunia @ 21.89 per share and earned a profit of Rs. 380y We bought 50000 shares of TRG @Rs. 4.01 per share and invested Rs. 200500.

On Tuesday 2nd November 2010,

y We bought 10000 shares of D.G Khan Cement @ 26.99 per share and invested Rs. 269900.y We bought 5000 shares of PTCLA @ Rs. 18.38 per share and the total investment made in

PTCLA was Rs. 91900.

y We bought 5000 shares of Orix leasing @ Rs. 5.63 per share and the investment totaled toRs. 28150.

On Wednesday 3rd November 2010,

y We sold 50000 shares of TRG @ Rs. 4.34 per share and earned a profit of Rs. 16500.y We also bought 10000 shares of Nishat chunia @20.77 and invested Rs. 207700.

On Thursday 4th November 2010,

y We sold 5000 shares of Orix leasing @ Rs. 5.75 per share and earned a profit of Rs. 600.On Friday 5th November 2010,

y We sold :1) 5000 shares of PTCLA @ 19.04 per share and earned a profit of Rs. 3300.2) 10000 shares of D.G. Khan Cement @28.60 per share and earned a profit of Rs. 16100.3) 10000 shares of Nishat Chunia @22.75 per share and earned a profit of Rs. 19800.


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AMZ INVESTMENTS

This week the market KSE 100 INDEX closed at 10882 points. It to a high of 10923.61 points

and went to a low of10702.19 points. It showed a remarkable improvement of 179.81 points as

the forecasted corporate earnings were high.

AMZ investment earned a profit of Rs. 56680 i.e. 11.34% in this week.


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AMZ INVESTMENTS

AMZ INVESTMENT

(22ND NOVEMBER-26TH NOVEMBER)

WEEK 6

WEEKLY OWERVIEW

On Monday 22nd November 2010, we started off with a balance of Rs. 801943.3. we bought

3000 shares of POL @ Rs 258 per share.

On 23rd, 24th and 25th of November we showed no trade because we invested Rs.774000 in

POL and as there was a chance of high profits we didnt sell the shares till 26th of November 2010.

On Friday 26th November 2010, we sold 3000 shares of POL @ Rs 268.70 per share and

earned a profit of Rs 32100 i.e. 6.42%.

The KSE 100 INDEX closed at 11145.2 points and showed an improvement of 9.68 points.


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AMZ INVESTMENTS

OUR RANKINGS

WEEK 1 SECOND

WEEK 2 FIRST

WEEK 3 SEVENTH

WEEK4 SECOND

WEEK 5 THIRD

WEEK 6 FIFTH


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AMZ INVESTMENTS

TRADE SUMMARY

SHARES TRADED

ATTOCK PETROLEUM

PSO

LAKSON TOBACCO

TRG

ATLAS BANK

SUMMIT BANK

ORIX LEASING

NATIONAL REFINERY

ATTOCK REFINERY

SUMMIT BANK

JAPAN POWER

NISHAT POWER

NISHAT CHUN POWER

NISHAT CHUNIAN

PTCLA

DGK CEMENT

POL


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AMZ INVESTMENTS

CONCLUSION

The project lasted for six weeks and following are the trading details:

MOST PROFITABLE SHARES:

LEAST PROFITABLE:

SUMMIT BANK = 17.16%

NISHAT POWER = 19.18%

ATLAS BANK= 22.11%

LAKSON TOBACCO = -4.88%

JAPAN POWER = -7.61%


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AMZ INVESTMENTS

MOST VOLATILE SHARE:

Lakson Tobacco where we made 15.65% profit first and then a 4.88% LOSS.

FREQUENTLY TRADED SHARES:

We did not invest in the same share more than twice so that we could gain maximum experience.

1. Lakson tobacco twice2. TRG twice3. Nishat Chunian twice

PORTFOLIO RISK VS STAND ALONE RISK:

We maintained a diversified portfolio throughout but only during the last week we invested in

Pakistan Oilfields alone to experiment the result on return of stand alone risk. Due to thorough

research we did not make a loss but our profit was lowest during this week. Therefore, ourconclusion is that a diversified portfolio is safer.


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AMZ INVESTMENTS

RECOMMENDATIONS

The market has shown improvement and for the past few weeks it is going up, However any

anticipated political upheavals/crises may affect the market negatively .i.e. the shares may see a

bearish trend. This week the closed at 11786.09 KSE 100 INDEX and showed an improvement of

113.45 points.

y In the coming few weeks it will be safe to invest in the following shares irrespective of themarket conditions as they have high dividend yields, strong fundamental investments as

the foreign investors are taking keen interest in these companies, and they have high

earnings growth :

1. Pakistan oil fields (POL)2. Pakistan petroleum (PPL)3. Hub Power Company (HUBCO)4. Fauji Fertilizers Company5. United bank limited (UBL)6. Attock petroleum.

y The following shares are not doing so well currently:Jehangir siddiqueArif habib securitiesAttock cementSummit bankKasb bankMaple leaf

y Instead of hypothetical investment, actual sums of money should be invested to make sureof honesty and accuracy.

y The time for uploading files should be five in the evening to ensure honesty.


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AMZ INVESTMENTS

PERSONAL VIEWS

ALVEENA: I HAD NEVER THOUGHT ID EVER

TRADE IN THE STOCK EXCHANGE BUT I

ENJOYED THE HIGHS AND LOWS OF THE

MARKET JUST AS MUCH AS A ROLLER COASTER

RIDE. ALTHOUGH THE DAILY UPLOADS WERE

A BIT DEMANDING. I WISH WE DIDNT MAKE

THE ERRORS WE MADE APART FROM THAT I

THINK THIS WAS AN EXCELLENT WAY TO

LEARN HOW THE STOCK EXCHANGE WORKS.

MAKING PROFIT WAS THE BEST PART OF THE

PROJECT!!!!!

Mehwish: The project was very informative

and challenging and it is a much neededstepping stone for my knowledge needed for

the field of finance.

Zain: The project had a very practical

approach. It was a great learning experience

because it involved real trading of shares

keeping in mind the rules and regulations. Ittaught us how to manage our funds, portfolio

and understand the market. I found out now

what exactly the stock market is and how

shares are traded. I also understood wat risk

is and how stock prices fluctuate.

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AMZ INVESTMENTS FINAL REPORT