Table of Content 1. 2. 3. 4. 5. 6. Details Introduction What is stock Exchange Karachi Stock Exchange Stocks listed,categories,ratings Rating over the past month/year Performance versus regional or international exchanges Page # 2 2 3 4 5 17

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Stock crash meaning conclusion Part 2 introduction Kinds of business investments Impact on economy Future projects

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 Introduction: Trades in the older exchanges are conducted on the floor (called the 'trading floor’) of the exchange itself, by shouting orders and instructions (called open outcry system). On modern exchanges, trades are conducted over telephone or online. Almost all exchanges are 'auction exchanges' where buyers enter competitive bids and sellers enter competitive orders through a trading day. Some European exchanges, however, use 'periodic auction' method in which round-robin calls are made once a trading day. The first stock exchange was opened in Amsterdam in 1602; the three largest exchanges in the world are (in the descending order) New York Stock Exchange (NYSE), London Stock Exchange (LSE), and the Tokyo Stock Exchange (TSE). Called also stock market a) What is Stock Exchange? Stock exchange is an Organized and regulated financial market where securities (bonds, notes, shares) are bought and sold at prices governed by the forces of demand and supply. Stock Exchange is basically served as:  Primary Market
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including individual and institutional investors.  Karachi Stock Exchange: Karachi Stock Exchange is Pakistan's largest and one of the oldest stock exchange in South Asia by market capitalization. KSE provides a reliable. Karachi Stock Exchange (KSE) is the biggest and most liquid exchange in Pakistan. Page | 3 . offering efficient. Secondary markets where investors can sell their securities to other investors for cash. listing requirements. thus reducing the risk of investment and maintaining liquidity in the system. It was declared the “Best Performing Stock Market of the World for the year 2002”. For over 60 years. It was founded in 1947. fair and transparent securities market in the region and enjoying full confidence of the investors. the trading community and l Vision Statement: To be a leading financial institution. municipalities and other incorporated bodies can raise capital by channeling savings of the investors into productive ventures. Stock exchanges impose rules. Secondary Market Primary markets where corporations. governments. with many Pakistani consortium as well as overseas enterprises listings. serving a wide spectrum of participants. orderly. the KSE has facilitated capital formation. liquid and efficient digitized marketplace where investors meet directly to buy and sell listed companies' common stock and other securities. and statutory requirements that are binding on all listed and trading parties.

40 (Rs in million). i.094. employees and the investors at large. b) How many Stocks are listed categories and ratings? According to the data of 2012 KSE have currently 573 listed companies with the listed capital of 1. transparent and orderly manner. listed companies. There are currently 34 sectors in KARACHI STOCK EXCHANGE (KSE) Page | 4 .e. To provide state-of-the-art technology and automated trading operations. To protect and safeguard the interests of all its stakeholders. compatible with international standards and best practices. members.Mission Statement: To strive to provide quality and value-added services to the capital market in an efficient. To reflect the country's economic health and behavior and play its role for the growth. driven by a team of professionals in accordance with good corporate governance.367. development and prosperity of Pakistan.

The rise in sequential price pressures is expected on the back of increase in 1) food inflation with wheat prices up 9. Leasing companies. Synthetic and Rayon. Textile Composite. average daily volumes in the market increased by 31. We expect Jan'13 CPI to clock in at 7.1%MoM (per month).3%MoM increase which would be significantly higher than the 0. Consequently.04 (Rs in million).5%. The strong performance was despite Moody’s cautioning against the political noise while stating that an IMF program looks essential for Pakistan (credit ratings were maintained). Modarabas.5mn shares.161. Commercial Banks.3%MoM CPI average increase .1%MoM/ CNG prices up 21%MoM and 3) increased gov't borrowing from the SBP. Woolen.7% worldwide to close at 17. Sugar and Allied Industries and many more. Jute.0%WoW to 196. in line with the Government of Pakistan’s Financial year Page | 5 .2%MoM. Investment Banks/Corporations/Securities.4 points as political uncertainty took a backseat following weeks of political uncertainty and an escalation in law & order incidents. whereas the 12m moving CPI average still stands at 9. And 4 new companies are listed with the capital of 8. And daily average turn over of shares is 196. This should lead to 7MFY13 CPI averaging 8.68 c) Rating of the stock exchange over the past month January 2013 and over the past year 2012? According to 24 January 2013 The KSE-100 Index increased by 2.23%YoY (per year). Textile Weaving. translating into a 1. Insurance.056. This is corroborated by the SPI trend which suggests an uptick in price pressures by a steep 2.such as closed-end mutual funds.65%YoY. 2) fuel/energy prices with gas prices up 6. Textile Spinning.

As noted in last year's annual review. Nevertheless. KSE's profit after tax in year 2012 was PkR669million versus restated profit of PkR145million in FY11. with a weakening external a/c profile amidst risks to inflationary pressures going forward. Excluding these one-time effects. Share of Profit of Associates rose by a handsome 35% to PkR97million.35%YoY.2013 target. KSE's pretax profit was PkR84. This has become all the more important post demutualization as the Company (KSE) moves from being a not-for-profit institution to a for.2%MoM incremental increase. Net treasury (mark-up) income shrunk by 4% due to passing on of interest earned on margin deposits to members. administrative Page | 6 .profit business enterprize that has to contribute positively to shareholder value. However. Treasury Income of PkR221million was a significant contributor to profitability. we expect full year FY13 CPI to average 8. That said.4% growth. This is a commendable achievement. Total Revenue of the Exchange was PkR695million in FY12 versus PkR672million in FY11. given that market conditions depicted improvement only in the second half of the financial year.7million in FY12 versus PkR53million in FY11. showing 3. In FY12. Going forward. As per audited accounts. going by an assumed 1. KSE's business model is being adjusted to reflect new ground realities with focus on cost rationalization and diversifying the revenue generation base. income from exchange operations showed 5% growth to reach PkR320million driven by both listing and trading fees. showing a growth of 60% YoY. the accounts reflect the impact of revaluation of assets and associated tax and depreciation adjustments as related to the corporatization and demutualization process. we believe that interest rates may have already bottomed. On the expenditure side.

29billion.67billion at June 30. The balance sheet footing after revaluation of assets. stood at PkR9. 2012 versus restated June 30. neutralizing savings achieved in the HR space. As a result. d) Performance of stock exchange versus regional stock exchange KSE-30 based SIFC in the Lahore Stock Exchange (LSE) LSE is seeking approval from the Securities and Exchange Commission of Pakistan (SECP) to commence Stock Index Futures Trading based on KSE-30 Index.expenses (excluding IT and Depreciation) declined by 3. This was driven primarily by 12% reduction in human resource costs which fell to PkR271million in FY12 versus PkR308million in FY11. maintenance and related expenses (especially for IT facilities.52billion as at June 30. The net surplus on revaluation of assets was PkR3. 2011 figure of PkR5. However.95billion as at June 30. this maintenance expense should normalize. Key adjustments to the income statement related to the demutualization process and consequent revaluation included financial advisory. This will enable LSE members Page | 7 . As the Exchange switches to new replacement hardware with extended warranties. Reserves of the Exchange were PkR4. 2012 versus PkR3. The reason for this increase was due to rising maintenance cost of several legacy equipment.6% in FY12 to PkR399mn versus PkR414million in FY11. consultancy and legal fees amounting to PkR38million and incremental depreciation of PkR60million. which are the core infrastructure of the Exchange) rose by 26% in FY12 versus FY11 to PkR98 million.19billion. the HR cost to total cost ratio improved to 44% from 50% in FY11. 2011.

based asset management companies to launch KSE-30 and KMI (Islamic Index) based Exchange Traded Funds (ETFs) which would be traded at the New York Stock Exchange (NYSE). and Islamabad Stock Exchange (ISE) on Monday signed a Memorandum of Understanding (MoU) for the joint trading in Stock Index Futures Contract (SIFC). LSE and ISE sign MoU on joint trading in SIFC Karachi Stock Exchange (KSE). International Exposure KSE has entered into agreements with two U. On March 15. Lahore Stock Exchange (LSE). the KSE formally requested BSE to allow SENSEX based futures trading at KSE. This would provide important exposure to the Pakistan's capital market in the key global financial centre and would also provide familiarity with major sectors and stocks to the world's largest institutional investors.and investors to directly trade the KSE-30 Index and develop market makers in Lahore itself.S. On February 07. 2012. The MoU Page | 8 . SENSEX based SIFC Contracts The Karachi and Bombay Stock Exchanges (KSE & BSE) are in advanced discussions for listing of BSE's SENSEX Index at KSE's Stock Index Futures counter. 2012 BSE reciprocated by agreeing in-principle and shared a draft index licensing agreement with KSE. KSE. BSE is currently in the process of seeking authorizations from appropriate regulators and ministries in India while KSE has received support from the SECP for executing this historic project. thus enhancing overall liquidity in these future contracts.

incollect system on daily basis. Stock Index Futures benefits: Provides Protection from adverse market movements. the SIFC is simply buying or selling a specified number of contracts whose market-to-market difference is settled through National Clearing Company's standard pay. This has the tremendous advantage of lower costs. If the underlying index rises by 5 percent. the SIFC on that Index shall also rise by 5 percent for that Mutual Fund. Managing Director LSE and Mian Ayyaz Afzal. based on the free-float of blue-chip stocks and KSE-30 is bound to have minimal impact cost. Institutional investors can use Stock Index Futures to hedge their positions in the underlying stocks in their portfolio. Contract Duration would be 90 days. Managing Director ISE signed the MoU. General Manager Marketing Development and New Production. contract would be started from first trading day of the next week following the close of the contract and contract end date would be last Friday of respective month. Volume would be weighted average value of last half hour of trading in the relevant Stock Index Futures Contract for cash settlement. Nadeem Naqvi.signing ceremony was held at Auditorium of KSE building. As per SECP circular Mutual Funds are allowed to use Derivatives for hedging since June 28 2011. a tool for Mutual Funds: Mutual funds based on an index duplicate the holdings of the underlying index. Sani-e-Mehmood Khan. Final settlement price of the Stock/Sector Index Futures Contract shall be the Page | 9 . envisaged to be an important leverage product. attended by a large number of stock professionals. Aftab Ahmed Chaudhry. Managing Director KSE. gave presentation about the SIFC to the participants. multiplied by the contract multiplier and expressed in Pakistani Rupees. On the occasion. officials of KSE and business community. Stock Index Futures. According to him.

OG or Banking). 100 percent cash and/or Bank Guarantee and One Index Point would be Minimum Fluctuation (Tick Size). A stock market crash could be brought about by the collapse of a speculative bubble. Managing Director KSE.price calculated based on a set of 121 reading of 15 second intervals (price points) of the underlying index levels taken between the last half an hour of trading.50 percent of exposure. Recently in January 2013 Karachi stock exchange crashed due to the order of Supreme Court for the dismissal of Prime Minister Raja Parvez Ashraf. Stock market crashes are social phenomena where external economic events combine with crowd behavior and psychology in a positive feedback loop where selling by some market participants drives more market participants to sell. e) What does stock market crash mean? It is a situation in which a stock market experiences a sudden and major decline in the prices of its underlying stocks. contract unit would be numerical value of underlined Index (KSE-30. minimum fluctuation one index point of underlying index. Aftab Chaudhry. a financial crisis or an economic crisis. Contract Multiplier: Rs 5. Earlier. Exposure Margin & Deposits: 12. The severity of a stock market crash depends on both the underlying financial events that precipitated the problem and the pressure placed on the stock market by investors reacting to negative news. Managing Director ISE addressed the event and vowed to continue this kind of joint trading efforts in future as well. Nadeem Naqvi. The highest and lowest 20 price points will be ignored and the closing price computed as an average of the remaining 81 price point will be the Final Settlement Price for the settlement of the contract. Page | 10 . Managing Director LSE and Mian Ayyaz Afzal.

with effect from August 27. KSE offers companies and investors an efficient and transparent securities market for raising capital and achieving investment objectives. Conclusion: The Karachi Stock Exchange (KSE). For over 60 years. serving a wide spectrum of participants. catering to every segment of customers' needs. including individual and institutional investors. the trading community and listed companies. constantly upgrading technology infrastructure through partnerships with the world's leading technology companies and through the continuous assessment and improvement of services. Pakistan's largest and most liquid Stock Exchange. largest and most innovative companies. Companies listed on the KSE are present in all aspects of our lives and are amongst Pakistan's most well known. orderly. was incorporated in 1949 as a Company Limited by Guarantee. KSE provides a reliable. Page | 11 . As a result of demutualization. KSE remains the pioneer of Pakistan's Capital Market Developments by introducing new products. liquid and efficient digitized marketplace where investors meet directly to buy and sell listed companies' common stock and other securities. the KSE has facilitated capital formation. 2012. KSE stood corporatized and demutualised as a public company limited by shares under the name of 'Karachi Stock Exchange Limited'.

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he started a newspaper for Muslims in pre-partition Hindustan fighting in World War II in Delhi. Mir Khalil-ur-Rahman took a loan of 5000 rupees from Abdul Ghani Barq of Ferozsons Printers and re-started the Daily Jang from Karachi.Mir Shakil ur Page | 14 . He called it Jang. He continued to work at the newspaper till his death in 1992. His ancestor originally belongs to Kashmir. When his father was a college student in 1940. or War.PART 2 Mir Shakil-ur-Rahman  Introduction: Mir Shakil-ur-Rahman is the second richest man of Pakistan and a youngest son of Mir Khalil-urRahman was the founder and editor of the Jang newspaper which has currently grown to be the most popular Urdu newspaper in Pakistan.

an Urdu news channel.  Kinds Of Business Investments: MKRF is a short for mir Khalil-ur-rehman foundation is a Pakistan based non profit organization He is also the president of All Pakistan Newspapers Society and also the president of Pakistan Broadcasters Association owner of the Independent Media Corporation Television is a Pakistani (Geo Tv) Geo television network established in May 2002 and owned by Independent Media Corporation. Mir Khalil’s brainy son. His elder brother Mir Javed ur Rehman and tender son Mir Ibrahim also assist him in business.Geo Television Network began with Geo TV and has since launched several other Pakistan-based channels.Test transition on entertainment channel featuring musical programs. including: * GEO Entertainment . Geo TV has become one of the most popular TV channels in Pakistan. around 10 top newspapers and the multi-billion rupee GEO TV project are being run by Mir Shakeel-ur-Rehman. The GEO TV network has quickly evolved into Pakistan’s biggest network of channels. * GEO News . This media group publishes a number of Newspapers and Magazines in Urdu and English he also owns the Geo TV network.Rahman (MSR) is the part owner of the Independent Media Corporation and Group Chief Executive and Group Editor in Chief of Jang Group of Companies of Pakistan. Dramas and films. Page | 15 . primarily in Urdu. Today. * GEO Tez .

 Impacted on the Economy: Today.a 24-hour sports channel devoted mainly to cricket. with a secondary focus on boxing.Test transition on aired. The Daily News is a widely circulated evening English newspaper. And his future project shows a positive and also a great impact on the economy of PAKISTAN. GEO Movies Page | 16 . who has a lot of projects pertaining to real estate under his belt too. football. MAG The Weekly is the most popular weekly English Language News magazine published by Jang Group of Newspapers Daily Waqt is another newspaper owned by the group and published from Lahore. Akhbar-e-Jehan is the most popular weekly Urdu Language News magazine published by Jang Group of Newspapers. And he is also a second richest family of PAKISTAN and 1000 of employees are earned through his organization. So mir shakil ur Rehman gives job opportunities to the fresh graduates due to which the economy of Pakistan is moving towards upward standards.* GEO Super . around 10 top newspapers and the multi-billion rupee GEO TV project are being run by Mir Shakeel-ur-Rehman.  Future Projects: Future Projects contain the Opening new media channels :     GEO Awaz GEO Bismiallah Urdu islamic programing GEO Taaz Live Urdu News Channel . tennis and field hockey. It is published from Karachi The Daily Awam is a widely circulated evening Urdu newspaper.

also published on . It is purposefully using the reach of its television network to amplify unchecked hate Page | 17 . revealed a recently released WikiLeaks cable.           GEO English GEO World GEO Films GEO Kids GEO Geomentary Urdu Documentary Channel GEO Taleem GEO Saraki GEO Sindhi GEO Pashtu GEO Balochi GEO Punjabi  Any other important and interesting information: The United States (US) had blamed Jang Group of “consciously publishing and broadcasting false and inflammatory stories” against the US and its interests despite having a contract with the Broadcasting Board of Governors (BBG) and airing Voice of America (VoA) on Geo TV. The cable sent from the US Embassy in Islamabad requested the government to end the contract between the BBG and Geo TV after it had increased criticism of the US government and its policies and was found to be involved in “anti-Semitic behavior” and of targeting Ahmadis in one of its television programs.

Jamaat-e-Islami. are paid by ISI. During the November 17. The embassy felt that the TV channel was helping with the amplification of “reporting rumor. innuendo. military intelligence. 2008 blackout of Geo TV. Another Geo staffer told a European diplomatic mission that the channel had taken itself off the air to “garner support for the station”.speech and promote violence in a brazen attempt to uphold or even increase its market share in a down economy.” Geo saw its sensationalism and hate speech as a win-win as it managed to generate ratings. states the cable. the Jang Group had not changed its practices. and unsubstantiated allegations”. a “senior” Geo staffer told a senior Locally Engaged Staffer (LES) at the embassy that the stoppage was a result of political pressure after the channel had refused to air a speech of a politician. and a ”more balanced and responsible partner” be found. Despite US insistence that the group contact and ask the embassy to respond to stories. and by the channels own admission it was doing this to “maintain or increase” market share. or other interests but that they prefer not to fire or reprimand these reporters. The cable quotes a number of occasions where the US Embassy found the group to be involved in printing unsubstantiated and inaccurate reports. said the information officer at the embassy. Post requests that the BBG cancel its contract to disseminate VoA programming through Geo. VoA airs a show on Geo News and co- Page | 18 . The group editor of Jang told the information officer that many of the group’s reporters had “political agendas. The cable requests that BBG contract for broadcasting VoA through Geo TV be terminated.

produces ‘The Platform’ with English news channel Express 24/7. Mir Khalil’s brainy son. around 10 top newspapers and the multi-billion rupee GEO TV project are being run by Mir Shakeel-ur-Rehman. a sister concern of The Express Tribune. Geo TV has become one of the most popular TV channels in Pakistan. And have a lot of projects pertaining to real estate under his belt too. WikiLeaks: US accuses Jang Group of publishing ‘false. inflammatory’ stories – The Express Tribune  Conclusion: Today. Page | 19 . The GEO TV network has quickly evolved into Pakistan’s b iggest network of channels. http://www.investorspk.html Page | 20 .com/ http://en. o o o o o o References: http://www.