Essay about Notes On Equity And Debt Investment Instruments

843 Words Dec 11th, 2015 4 Pages
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 below, with 60% investment in equity instruments and 40% investment in debt instruments.
1. EQUITY INSTRUMENT INVESTMENTS
S. no Company name Price per share Amount invested Dividend paid last year PACRA rating
1 D.G. Cement 20 Rs. 133.56 Rs. 4 million Rs. 3/ share AA
2 Lucky Cement 25 Rs. 495.26 Rs. 5 million Rs. 9/ share A+
3 Attock Cement 15 Rs. 168 Rs. 3 million Rs. 10.5/ share A-

We decided to invest in the cement sector because after the recent earthquake, the reconstruction phase will start and we think the cement sector will escalate, hence increasing the investor’s capital gain and dividends as well. 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…

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