this presentation was delivered at IBA main campus Karachi University on 6 March 2014

1. by
Fahim Akhtar

2. 2

3. Financial markets
A place in which people and entities can trade
financial securities, commodities, and other fungible
items of value at low transaction cost and at prices
that reflect supply and demand.
•Stock markets
•Commodity markets
•Bond markets
•Money markets
•Futures markets
•Insurance markets
•Foreign exchange markets
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4. Stock market
A place where shares or stocks of corporate organizations
listed in exchange are traded
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5. How stock is listed for trade
You want to expand business, and you need money
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6. How stock is listed for trade
Borrow from fiend and family
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7. How stock is listed for trade
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Go to banks for borrowing

8. How stock is listed for trade
Go to general public
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9. How stock is listed for trade
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10. How stock is listed for trade
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11.  Registered company engages in business
with funds generated
 Company reports profit quarterly
 Earnings and profitability is disbursed amongst
all stake holders including those holding share
during specified time
 Company earns more, shares goes up and in
case of loss share sinks
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12. 
Company doing good or bad business

Financial results and bright or depressive
expectations

Players go for buying seeing rapid growth or selling
anticipating depressed earnings

New innovative product launched / business explored

Some incentives / taxation affecting stock
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13. • Listed companies
• Market capitalization
-
• Average Daily Turnover -
570
5,154,737.92 (in
millions)
263.84 (in million)
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14. A stock index or stock market index is a method of
measuring the value of a section of the stock market
All shares
KSE -100
KSE -30
KMI- 30
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15. Historical performance
Karachi Stock Exchange – 100 Index
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16. The Federal Board of Revenue has collected Rs 1.26 billion capital gains tax
(CGT) from stock exchanges during July-2012 to June 2013 ( approximately
1% of total tax collected in Pakistan)
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17. •
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200 stock brokerage houses,20,000 traders, equity dealers, researchers
MBA / BBA finance , Marketing, CA, ACCA
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50,000 professionals with market

18. Some international markets
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Dow
Nikkei 225
Hangseng
Sensex
FTSE
Asx 200
DAX
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19. Commodity market
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20.  Scare precious and energy resources
 Those controlling desire optimum economic benefits
 Smart trade of commodity in exchanges
Major chunk of trade in crude and gold
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21. Crude oil is used to
• Produce a variety of fuels such as gasoline,
diesel fuel, jet fuel and bunker fuel.
• Kerosene
• Fertilizers and bug killers.
• Used in the production of cosmetics, perfumes
• Chief ingredient in the manufacture of synthetic
rubbers.
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22. Crude oil reserves
(in million barrels )
•
Venezuela
297,570
•
KSA
267,910
•
Canada
175,200
•
Iran
157,300
•
Iraq
140,300
•
Kuwait
104,000
•
UAE
97,800
•
Russia
80,000
•
Pakistan
480
Opec formed in 1960 and often controls the prices of oil
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23. Crude oil trade
(in million barrels)
Exporters
Importers
KSA
8.65
USA
12.22
Russia
9.67
Japan
5.1
Norway
2.94
China
3.4
Iran
2.52
Germany
2.48
UAE
2.52
South Korea 2.15
Venezuela
2.2
Pakistan
1.55 -1.8
Kuwait
2.15
India
1.69
Nigeria
2.15
Italy
1.56
50 % crude oil consumed is extracted internally in Pakistan
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24. Jewelry forms two-thirds of annual gold demand. India is the
largest consumer in volume terms, accounting for 29% of
demand in 2012, followed by China and the USA
Central banks and the International Monetary Fund play an
important role in the gold price. At the end of 2011 central banks
and official organizations held 23 percent of all above-ground
gold
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25. Gold Reserves in tones
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United States
Germany
International Monetary Fund
Italy
France
China
Switzerland
Russia
Japan
Netherlands
India
European Central Bank
Turkey
Taiwan
Portugal
8,133.5
3,391.3
2,814.0
2,451.8
2,435.4
1,054.1
1,040.1
996.4
765.2
612.5
557.7
502.1
445.3
423.6
382.5
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26.  Speculators, takes into account economy ,
financial reports and events
 There are many future contracts trading like
gold March and crude April
 Short selling in futures stabilize the prices
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27. Gold prices take effect of
• Dollar falling:
• Inflation:
• Economic crisis:
• A fall in gold supply: technical rebound
• US unemployment figures:
• Political concerns, crisis:
• Festivals:
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28. Historical gold prices
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29. • Commodities exchange work worldwide
• NCEL is working in Pakistan renamed as PMEX
• There are more than 50 commodity houses facilitating
gold trade
• More than 5000 MBAs employed in this sector many of
them with good compensation package in Pakistan
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30. • Account in PMEX or international broker
• Variety of gold and crude oil contracts available
• Futures also traded
• Future carry more risk
But than higher the risk, higher will be reward
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33. Questions
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