ASSIGNMENT # 3- EQUITY AND DEBT INVESTMENT INSTRUMENTS
As part of our assignment, we were required to take into consideration the scenario that we have funds of up to Rs. 20 million, which must be invested in both equity and debt investment instruments. For our equity instruments, we decided to invest in three cement companies: Lucky Cement, D.G. Cement, and Attock Cement. For our debt instruments, we decided to invest in Standard Chartered Bank of Pakistan and Engro Corporation LTD. After reviewing the websites of Pakistan Credit Rating Agency Ltd (PACRA) , SECP, Islamabad Stock Exchange, Karachi Stock Exchange, and various other sources, we extracted the following information. We have created a portfolio for our investments in the tables …show more content…
D.G. Cement has 9% of the cement sector and we can see it growing because as per the recent trend, there was a growth phase in its shares in the market, as of December 1st, 2015. We chose Lucky Cement because its share prices rose around Rs. 4.21 last week. It is a good opportunity to invest in it for short term period and benefit quickly. For majority of the companies in the cement industry, there has been a trend of increase in their share prices, hence signaling that this sector could definitely prosper after the recent earthquake, because people are in need to rebuild their homes and other …show more content…
Standard Charted: the bank is one of the largest international bank in the country, being the first one to be awarded the Islamic Banking license and opening its own branch. Serving both retail and corporate customers, SCB provides various services to its valued customers. It has been ranked as AAA/ A1+ by PACRA, and won an award for the Best Bank in Pakistan by “The Asset Triple A” organization . Some of the product offerings SCB provides its customer in the debt instruments are Pakistan Investment Bonds (PIBs), treasury bills, and Ijarah Sukuks.
• PIBS: these are long term instruments that have semi-annual coupon payments, and have maturity dates of up to 10 years, and their auction schedules are quarterly announced by SBP.
• Treasury Bills: these are short-term, highly liquid zero-coupon government debt instruments that are usually sold at discount value; their maturity dates are up to 1 year, and their auction dates are usually announced by SBP on a fortnightly basis.
• Ijarah Sukuks: these are bonds that comply to the Shariah, and are issued by the Pakistan Domestic Sukuk Company Ltd, which is owned by the Government of Pakistan. They are coupon based and have semi-annual profit payments, and usually have a maturity of up to 3 years
As part of our assignment, we were required to take into consideration the scenario that we have funds of up to Rs. 20 million, which must be invested in both equity and debt investment instruments. For our equity instruments, we decided to invest in three cement companies: Lucky Cement, D.G. Cement, and Attock Cement. For our debt instruments, we decided to invest in Standard Chartered Bank of Pakistan and Engro Corporation LTD. After reviewing the websites of Pakistan Credit Rating Agency Ltd (PACRA) , SECP, Islamabad Stock Exchange, Karachi Stock Exchange, and various other sources, we extracted the following information. We have created a portfolio for our investments in the tables …show more content…
D.G. Cement has 9% of the cement sector and we can see it growing because as per the recent trend, there was a growth phase in its shares in the market, as of December 1st, 2015. We chose Lucky Cement because its share prices rose around Rs. 4.21 last week. It is a good opportunity to invest in it for short term period and benefit quickly. For majority of the companies in the cement industry, there has been a trend of increase in their share prices, hence signaling that this sector could definitely prosper after the recent earthquake, because people are in need to rebuild their homes and other …show more content…
Standard Charted: the bank is one of the largest international bank in the country, being the first one to be awarded the Islamic Banking license and opening its own branch. Serving both retail and corporate customers, SCB provides various services to its valued customers. It has been ranked as AAA/ A1+ by PACRA, and won an award for the Best Bank in Pakistan by “The Asset Triple A” organization . Some of the product offerings SCB provides its customer in the debt instruments are Pakistan Investment Bonds (PIBs), treasury bills, and Ijarah Sukuks.
• PIBS: these are long term instruments that have semi-annual coupon payments, and have maturity dates of up to 10 years, and their auction schedules are quarterly announced by SBP.
• Treasury Bills: these are short-term, highly liquid zero-coupon government debt instruments that are usually sold at discount value; their maturity dates are up to 1 year, and their auction dates are usually announced by SBP on a fortnightly basis.
• Ijarah Sukuks: these are bonds that comply to the Shariah, and are issued by the Pakistan Domestic Sukuk Company Ltd, which is owned by the Government of Pakistan. They are coupon based and have semi-annual profit payments, and usually have a maturity of up to 3 years