a presentation about stock market specially for Pakistan stock market

2. A place where buyers and sellers come together to obtain
information and exchange commodities.
Markets are composed of:
Buyers
Sellers
Infrastructure
Others behind the scenes: importers, processors,
storage owners, wholesalers, credit suppliers,
government officials and policies

3. In fruit market we purchase and sell
fruits

4. In grain market we purchase and sell
grain

5. The stock market is the market in which shares
of publicly held companies are issued and traded
either through exchanges or over-the-counter
markets. Also known as the equity market,
Stock market:

6. A place where only big players can play
Trading in stock exchange is gambling
But at the same time it is
Trading stock is a science and equally art too
Expression or application of human creative skill &
imagination

7. History of stock exchange:
The first stock market in 17th century
In London coffee house
People who are interested in buying securities come
there
Innovators like john posted prices for marketable
securities
Then this market become organized on March
3,1801

8.  It is an organized market
 It is a securities market
 It is an important constituent of capital
market i.e., market for long-term finance
 It is a voluntary association of persons
desirous of dealing in securities
Features of stock exchange:

9.  In a stock exchange, only the members can deal in i.e., buy & sell
securities
 The members of a stock exchange can buy and sell securities either
as brokers for & on behalf of their clients
 The dealings in a stock exchange are under certain accepted code of
conduct i.e., rules and regulations
 Provide forecasting service
Continue……

10. Role of stock exchange:
 Provide central and convenient meeting places for
sellers and buyer of securities
 Increase the marketability and liquidity of securities
 Contribute to stability of prices of securities
 Equalization of price of securities
 Smoothen price movement

11.  Help the investors to know the worth of their holdings
 Promote the habit of saving and investment
 Help capital formation
 Help companies and government to raise funds from
the investors
 Provide forecasting service
Continu……

12. Helps to boost up economic Industrial Growth and
Economic Development
Encourage good corporate practices such as Bookkeeping
and reporting
Attract foreign investment
Helps investor to take better decision with available
information in stock exchange
Continu……

13. Stock Exchange in Pakistan
Karachi stock
exchange
Lahore stock
exchange
Islamabad
stock exchange
Pakistan stock
Exchange

15. Karachi stock exchange:
Foundation:
Founded on September 18,1947
Importance:
It was Pakistan's largest and one of the oldest stock exchange in South
Asia.
the Pakistani equities delivered 26 percent a year for US dollar
investors, making Karachi the best-performing stock exchange in the
world
Karachi Stock Exchange was also listed among 10 best stock markets in
the world in 2015
Market capitilization:
As on July 10, 2015, total market capitalization reached Rs. 7.33 trillion
(US$72 billion approximately

17. Lahore stock Exchange:
Lahore Stock Exchange (Guarantee) Limited (LSE) was Pakistan's
second largest stock exchange after the Karachi Stock Exchange
Foundation:
The Lahore Stock Exchange (Guarantee) Limited came into existence
in October 1970
Members
The LSE has 152 members of which 81 are corporate, and 54 are
individual members.
Importance:
The LSE was the first stock exchange in Pakistan to use the internet
and currently 50% of its transactions are via the internet.
The number of listed companies has increased to 519 since its
inception

18. Number of listed companies:
The number of listed companies has increased to 519 since its inception
Importance:
The LSE was the first stock exchange in Pakistan to use the internet
and currently 50% of its transactions are via the internet.
The number of listed companies has increased to 519 since its
inception
Index
Lahore tock exchange use LSE25 index

19. Islamabad stock exchange:
Islamabad stock exchange or ISE was the youngest of the three
stock exchanges of Pakistan and is located in the capital
of Islamabad.
Foundation
Islamabad stock exchange (ISE) was incorporated as Guarantee
limited company on 25 October 1989 in Islamabad.
Index
ISE10

20. Pakistan stock exchange:
Official stock exchange of Pakistan
Founded on 11 january,2016

22. Provide a strong national image and single national
platform to investor
Make registration process easy
Assistance to small stock exchanges
Conflict of interest
Tax benefit

23. Registration Process of New
Investor

24. How prices are determine in stock
exchange
Like all prices in competitive markets, stock
prices are determined by supply and demand.
However, in stock markets, supply and
demand curves require careful
interpretations

25. Figure 1: The Market For Shares of
Corporation X
Number of Shares
Price per Share
E
S
Rs.120
90
60
D
302 million

26. Figure 2: Shifts in the Demand for Shares
Curve
Number of Shares
Price
per Share
S
Rs.120
90
D2
D1
(a)
302 million
The demand curve shifts rightward when new
information causes expectations of:
higher future profits etc.

29. 29
Why stock price moves up or down
 Company doing good or bad business
 Financial results and bright or depressive expectations
 Players go for buying seeing rapid growth or selling
anticipating
 New innovative product launched / business explored
 Some incentives / taxation affecting stock

30. Top 10 stock exchanges

31. 31
Indices
A stock index or stock market index is a method of measuring
the value of a section of the stock market
Index:

32. Index in Stock Exchange:
KSE 100
KSE 30
KMI 30
All shares Islamic

33. KSE 100
• Most recognized index of Kse
• Represent from all sector of the kse and
includes the largest companies on the basic of
their market capitalization
• Represent over 85% of the market
capitilization of the exchange

34. Objectives of KSE 100 Index
The primary objective of the KSE 100 index is
to have a benchmark by which the stock price
performance can be compared to over a
period of time . In particular, the KSE 100 Is
designed to provide investors with a sense of
how the Pakistan equity market Is performing
Thus the KSE 100 is similar to other indicators
that track various sectors of the Pakistan
economic activity such as the gross national
product ,consumer price index , etc.

35. KSE 30
• Introduced in 2006
• Blue chip stock
• Includes only top 3O most liquid companies
KMI 30:
Tracks the most 30 most liquid shariah compliant
companies
Introduces in September 2008
Companies Seleted on basic of screening

36. Screening
Eligibility Criteria
Technical
Criteria

37. The formula to calculate KSE 100 Index is :

38. Why stock investors mostly loose
38
 Greed and Fear
 Lack of knowledge
 Rely over brokers and friends
 Lack of analytical skills
 Insider trading

39. What to do as investor
39
 Plan your Investment
 Go for long term Investment
 Control your fear and greed
 Decide right entry and exit in market
 Diversify your portfolio
 Always keep some reserve cash
 Learn science and develop art of investment

40. Performance of KSE 100 an KMI 30
index
0
200
400
600
800
1,000
1,200
Investmentvalue(USD)
KMI-30 KSE-100
$1,110
$809

41. 1-Pakistan Oil Field
2- Pakistan Telecom
3- Fauji Fertilizer
4- Nat Bank Of Pakistan
5- Pakistan Petroleum
6- Hub Power
7- United Bank Limited
8- Kot Addu Power
9- Bank Al-Falah
10- Oil & Gas Development
Blue Chip Stocks

42. 4

43. • Computerized system established by the NASD to
facilitate trading by providing broker/dealers with current
bid and ask price quotes on over-the-counter stocks and
some listed stocks.
• NASDAQ does not have a physical trading floor that brings
together buyers and sellers.
• All trading on the NASDAQ exchange is done over a network of
computers and telephones.

44. 4
Brand - NASDAQ is a Diversified Market of Leaders
Listed since 1975
Listed since 1985
Listed since 1988
Listed since 1971
Listed since 1992
Listed since 1980Listed since 1978
Listed since 1989
Listed since 1987
Listed since 1971
Listed since 1999
Listed since 1970
Companies that List on
NASDAQ Stay and Grow on
NASDAQ
Listed since 1986
Listed since 1984
Listed since 1982
Listed since 1972

45. Factors that effect stock
Market
Rumors
World Events
Economy
Fraud
Politics
War & terrorism
Demand & Supply
Natural Disaster
Company position
THE FAULT IN OUR
STARS