PORTFOLIO

FINANCAIL REPORT
SUBMITTED TO: Dr. SURESH KUMAR
SUBMITTED BY: SHAFQAT ALI
CMS; 013-20-0012
E-MAIL: Shafqat.bbaf20@iba-suk.edu.pk

INSTIUTIONS
PASSWORD: Allah@Help1

AND MARKETS

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Company Name
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INTRODUCTION:
This report is consisting of the demo account transition on Pakistan stock
exchange market.it was hypothical portfolio and no real money invested in it. As
per the requirements of the Financial Institutions and Markets course, led by the
respected Dr. Suresh Kumar during Summer semester 2023. With an initial
investment of Rs. 1,000,000, investment amount depends upon us. my portfolio
aims to show the buying, holding, and selling of stock by analyzing the market
condition and the economic condition of country.
Diversification was a basic principle guiding my portfolio construction, invest in
different stocks was a great learning about the growth and downfall reasoning of
prices.

PORTFOLIO PERFORMANCE:
For demo account I select 1 million for my portfolio, I invest in different stocks
with different quantity. Gain and loss are beauty and ugliness of stock market
and that’s what I had faced. On very first day I get the 11000 rupees gain on
stocks which make me motivate to investing carefully is the course factor
effecting the earnings. The portfolio's performance can be evaluated through
various metrics, including volatility and risk-adjusted performance. There are
some stocks which are opposite to each other’s.
a. Volatility: The portfolio's volatility can be assessed by calculating the standard
deviation of daily returns during the specified period.
b. Risk-adjusted Performance: To measure the risk-adjusted performance,
metrics like the Sharpe ratio or alpha can be used.

ASSEST ALLOCATION:
The asset allocation plays a crucial role in achieving the portfolio's target return
and objectives. However, it is essential to diversify across various sectors and
asset classes to mitigate risk. The portfolio comprises different asset classes,
primarily stocks and cash.
The asset allocation in this portfolio leans heavily towards stocks, which may
lead to higher returns but also exposes it to market fluctuations.
NEWS & EVENTS:
 Different stocks performance affect by different events related to
economic, weather, market supply and demand of products.
 As Pakistan is suffering from heavy rains so for the cement demand
increases and the price for the share might affect positively.
 Pakistan is now going to import the fertilizer so the local people can make
more demand for local companies’ fertilizer and in summer the rice crop is
bow by the formers and fertilizer is main component to grow fast and
healthy crop so in this way demand can be increase and share price may
rise…
 Inflation fluctuates the market in down wards but due to diversification I
don’t face the losses
PERFORMANCE ATTRIBUTION:
A thorough performance attribution analysis of individual investments (stocks)
within the portfolio is crucial. By evaluating each stock's contribution to overall
performance, strengths, and weaknesses can be identified. Some stocks may
have outperformed, contributing positively to the portfolio's returns, while others
may have underperformed.

RECOMMONDATION:
I am not so much of an expert, but I understood some factors that can affect the
share prices and the decisions.
1)Right information: Any information with good authentication can give good
idea about future performance of the company.

2)supply and demand: The supply and demand shares also reflect the future
progress and the returns expectation.

3)Spread: It’s a difference between the selling and purchasing of stocks in

market. More spread shows the low demand and vice versa.

APPENDIX: