Investment Analysis and Portfolio Management

Submitted To : Dr. Nosheen

Submitted By : Farhat Yaseen, Muneeb, Osama Zahoor, Hammad, KhalilUllah Khan

Department of Economics

Faculty of Management Sciences

National University of Modern Languages

Islamabad
Contents
Executive Summary...................................................................................................................................3
Investment..................................................................................................................................................3
PSX.............................................................................................................................................................3
Why PSX and KTrade..............................................................................................................................4
Stock to Choose..........................................................................................................................................5
Analysis......................................................................................................................................................5
Conclusion..................................................................................................................................................6
Executive Summary

Our team, including Farhat Yaseen, Osama Zahoor, Muneeb, Khalil Ullah Khan, and Hamad,
began our project by investing RS 42,570 in two companies, PSO and EPCL, at the Pakistan
Stock Exchange. Khalil Ullah Khan contributed most of the money from his second salary.
However, Khan, being cautious, withdrew most of his investment when he noticed the stock
values dropping. After careful analysis, we chose to invest a smaller amount, Rs 5000, in
Avanceon Ltd, aiming for a smarter investment choice. Unfortunately, we also experienced a
loss of Rs 464 in this investment.

Investment:

In simple terms, investment is the allocation of your resources, such as money or time, with the
expectation of a future profit or benefit. This could involve putting your savings into stocks,
bonds, real estate, or even starting your own business. The key idea is that you sacrifice present
resources for the potential of greater returns in the future.

PSX:

The Pakistan Stock Exchange (PSX) is the premier stock exchange of Pakistan, serving as the
platform for buying and selling listed companies' shares. Essentially, it connects investors with
companies seeking to raise capital for growth and expansion. By investing in PSX-listed
companies, you become a part-owner, potentially reaping profits through dividends and capital
appreciation (increase in share price)

Why We Picked PSX and KTrade for Investment:

PSX, the Pakistan Stock Exchange, is a good place to invest for a few reasons. First, it's safer
from fraud because many legit companies are part of it, and there are strict rules to protect people
who invest. Second, when you invest in companies on the PSX, you get to be part of Pakistan's
financial world, which means your money can grow by being involved in different parts of the
economy. Also, using KTrade, a trusted brokerage firm, makes it easier to start investing. They
help you with a simple platform, advice, and secure transactions. By teaming up PSX with
KTrade, you can start investing wisely, balancing risks, and exploring the market. Just
remember, investing is never without risks. It's important to research, understand how much risk
you're okay with, and get advice before making any investment choices.

Which stock to choose

We chose to buy PSO and EPCL stocks after studying their financial details and considering
global conflicts like the Russia-Ukraine war, Israel conflict, and tensions between China and
Taiwan, which we believed could increase oil prices and boost the value of oil company stocks.
So, we bought 220 shares of PSO and 396 shares of EPCL because we noticed Pakistan was
aiming to put more focus on its agriculture sector. Thinking it could be a good investment
opportunity, we decided to buy those shares.
Analysis
We experienced a loss of Rs 464 in AVN stock which is overall 9.28% decrease to our
investment, and there was also a loss in PSO stock due to which Khan withdrew his investment.
The drop in PSO's stock price might be linked to COP28, an event in the United Arab Emirates
where they aimed to tackle the effects on the oil industry and prioritize green energy.
Conclusion:
Even though we didn't make a profit from our stocks and actually lost money overall, the whole
experience was really helpful. We learned so much about how to choose which stocks to invest
in, how to figure out how much a company is worth, and when the best time is to buy or sell
stocks. Despite not making money, this whole investing journey taught us a lot about how the
stock market works, and it was a valuable learning experience for all of us.