FINANCIAL MARKETS

Stock and Commodity Portfolio

For the Week Ended 13 Nov, 2022

Submitted to:
Mr. Samir Ahmed

Submitted by:
Fatima Mir 23010050
Asma Faizan 23010073
Ali Hussnain 23010104
M. Asif Shan 23010007
Commodity Name: Brent Crude Oil
Trade Day and Time: Friday - Nov 11, 2022 (2:13 PM)
Trade position and price: Long @ 95.49

Underlying Reasons for the above trade position

Considering the ongoing inflationary wave and recent hike of interest rates last week we decided
to enter into a buy position at above mentioned level. Generally, Oil market remains sensitive to
interest hikes and supply constraints. Since the last hike of 0.75% by FED Oil prices have been
on a rise amid some more future hikes. In addition to that, looming EU ban on import of Russian
Oil is not going to get away sooner or later which means a consistent supply shortages of Oil
from Russian Oil. Moreover, China, which has been facing a record rise in COVID cases, has
announced on Friday to ease the restrictions including shortening quarantines by two days. It
means that there would be no demand cuts from China hence here again the consistent demand
levels mean more pressure on Oil prices. Lastly, Saudi Arabia, the leading producer in the Oil
Cartel (OPEC), was pushed by the Baiden Administration last month to increase the supply but
they decided against it. Resultantly, the Oil prices have gone up by more than ten dollars since
their last meeting and this trend is expected to remain same until or unless OPEC decides to
increase the supply overall.
Stock Name: Systems Limited
Trade Day and Time: Friday - Nov 11, 2022
Trade position and price: Long @ Rs.452
Underlying Reasons for the above trade position
The IT sector has been on boom in Pakistan from a while. Although after the regime change, a
lot of sectors have been performing negatively, the IT is one of the few sectors that have
continued to perform well despite the distressed circumstances. In the tech sector, System is the
only company growing through multiple means, organically, inorganically and at the same time
tapping into international market. In just last quarter, when the economy has been facing
downturn, the company registered 82% revenue growth. Since the company now is increasingly
operating in international market, the local currency depreciation is also playing a role in the
overall revenue growth. Over the last year, earnings grew by 120%, while the same is forecasted
to grow by 32.35% over the next year, as forecasted by Simplywall and many other local
brokerage houses.