Week 1 report

MBA-II

Section – A

Week 1 Report

Submitted by:

Annaam Bin Muhammad

Haris Amir

Hira Naeem Muggo

Kinza Adnan

Submitted to:

Dr. Sohail

Investments and Portfolio Analysis

Spring 2020
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Table of Content

Market Portfolio..........................................................................................................................................3

Beginning of Week 1 (28/01/2020).........................................................................................................3

Ending of Week 1 (04/02/2020)..............................................................................................................3

Passive Portfolio..........................................................................................................................................4

Beginning of Week 1 (28/01/2020).........................................................................................................4

Ending of Week 1 (04/02/2020)..............................................................................................................4

Passive Levered Portfolio............................................................................................................................6

Beginning of Week 1 (28/01/2020).........................................................................................................6

Ending of Week 1 (04/02/2020)..............................................................................................................7

Active Portfolio...........................................................................................................................................8

Beginning of Week 1 (28/01/2020).........................................................................................................8

Trading (01/02/2020)...............................................................................................................................9

Ending of Week (04/02/2020)...............................................................................................................11

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Market Portfolio
Beginning of Week 1 (28/01/2020)

KSE – 100 Index value: 42,299.19

BALANCE SHEET
Total Assets 100,000,000
Total Liability -
Owners’ Equity 100,000,000

Ending of Week 1 (04/02/2020)

KSE – 100 Index Value: 40,884.25

1. Rp for Week 1 = (New Value – Old Value)/ Old Value

Rp for Week 1 = (40,884.25 – 42,299.19)/ 42,299.19
Rp for Week 1 = -3.3%
2. OE at end of Week 1 = OE beginning of Week 1 x (1+ Rp for week 1)
OE at end of Week 1 = 100,000,000 ( 1 + (-3.3%))
OE at end of Week 1 = 96,654,924.13

BALANCE SHEET
Total Assets 96,654,924
Total Liability -
Owners’ Equity 96,654,924
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Passive Portfolio
Beginning of Week 1 (28/01/2020)
Price per
  Company No. of Shares share MV
Bestway Cement Ltd.
1 (BWCL) 10000 111.34 1,113,400.00
Bannu Woollen Mills Ltd.
2 (BNWM) 30000 53.85 1,615,500.00
Fatima Fertilizer Ltd.
3 (FATIMA) 60000 25.9 1,554,000.00
Indus Motor Company
4 Ltd. (INDU) 20000 1072.47 21,449,400.00
International Industries
5 Ltd. (INIL) 20000 109.2 2,184,000.00

6 Packages Ltd. (PKGS) 10000 389.1 3,891,000.00

Pakistan Services Ltd.
7 (PSEL) 10000 993.53 9,935,300.00
Service Industries Ltd.
8 (SRVI) 57500 880 50,600,000.00
Unity Foods Ltd.
9 (UNITY) 40000 14.11 564,400.00

10 Ibrahim Fibre Ltd. (IBFL) 20000 60 1,200,000.00

  Total Value of Shares     94,107,000.00

  Cash leftover     5,893,000.00

MV of Portfolio 100,000,000

BALANCE SHEET
Total Assets 100,000,000
Total Liability -
Owners’ Equity 100,000,000

Ending of Week 1 (04/02/2020)

Price per
  Company No. of Shares share MV
Bestway Cement Ltd.
1 (BWCL) 10000 106 1,060,000.00
Bannu Woollen Mills Ltd.
2 (BNWM) 30000 52.75 1,582,500.00
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Fatima Fertilizer Ltd.

3 (FATIMA) 60000 25.99 1,559,400.00
Indus Motor Company
4 Ltd. (INDU) 20000 1049.94 20,998,800.00
International Industries
5 Ltd. (INIL) 20000 103.72 2,074,400.00

6 Packages Ltd. (PKGS) 10000 368.73 3,687,300.00

Pakistan Services Ltd.
7 (PSEL) 10000 993.53 9,935,300.00
Service Industries Ltd.
8 (SRVI) 57500 930.95 53,529,625.00
Unity Foods Ltd.
9 (UNITY) 40000 13.83 553,200.00

10 Ibrahim Fibre Ltd. (IBFL) 20000 60 1,200,000.00

  Total Value of Shares     96,180,525.00

  Cash leftover     5,893,000.00

  Interest income 10% annual 0.19% weekly 11,332.69

  Total Cash in Hand     5,904,332.69

MV of Portfolio 102,084,857.69

BALANCE SHEET
Total Assets 102,084,857.69
Total Liability -
Owners’ Equity 102,084,857.69

1. Rp for week 1 = (OE Ending – OE Beginning) / OE Beginning

Rp for week 1 = (102,084,857.69 – 100,000,000) / 100,000,000
Rp for week 1 = 2.08%
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Passive Levered Portfolio

Beginning of Week 1 (28/01/2020)

No. of Price per

  Company Shares share MV
Safe Mix Concrete Ltd.
1 (SMCPL) 250000 6.5 1,625,000.00

2 ICI Pakistan Ltd. (ICI) 35000 722.48 25,286,800.00

Metropolitan Steel
3 Corporation Ltd. (MSCL) 500000 9.35 4,675,000.00
Baluchistan Glass Ltd.
4 (BGL) 85000 6.09 517,650.00
Ghandara Nissan Ltd.
5 (GHNL) 75000 68.92 5,169,000.00
Nestle Pakistan Ltd.
6 (NESTLE) 7150 7988.98 57,121,207.00
EFG Hermes Pakistan Ltd.
7 (EFGH) 90000 23.3 2,097,000.00

8 Shell Pakistan Ltd. (SHEL) 80000 214.7 17,176,000.00

9 Media Times Ltd. (MDTL) 100000 1.12 112,000.00

Sanofi-Aventis Pakistan
10 Ltd. (SAPL) 45000 690 31,050,000.00

  Total Value of Shares   144,829,657.00

Cash leftover   5,170,343.00

MV of Portfolio 150,000,000

BALANCE SHEET
Total Assets 150,000,000
Total Liability 50,000,000
Owners’ Equity 100,000,000
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Ending of Week 1 (04/02/2020)

No. of Price per

  Company Shares share MV
Safe Mix Concrete Ltd.
1 (SMCPL) 250000 5.61 1,402,500.00

2 ICI Pakistan Ltd. (ICI) 35000 695.62 24,346,700.00

Metropolitan Steel
3 Corporation Ltd. (MSCL) 500000 9.7 4,850,000.00
Baluchistan Glass Ltd.
4 (BGL) 85000 5.75 488,750.00
Ghandara Nissan Ltd.
5 (GHNL) 75000 62.64 4,698,000.00
Nestle Pakistan Ltd.
6 (NESTLE) 7150 7950 56,842,500.00
EFG Hermes Pakistan Ltd.
7 (EFGH) 90000 23.3 2,097,000.00

8 Shell Pakistan Ltd. (SHEL) 80000 212.63 17,010,400.00

9 Media Times Ltd. (MDTL) 100000 1.09 109,000.00

Sanofi-Aventis Pakistan
10 Ltd. (SAPL) 45000 669.55 30,129,750.00

  Total Value of Shares   141,974,600.00

Cash Leftover 5,170,343.00
20% 0.385%
Interest Expense annually weekly 19,885.93
Cash on hand 5,150,457.07
MV of Portfolio 147,125,057.07

BALANCE SHEET
Total Assets 147,125,057.07
Total Liability 50,000,000
Owners’ Equity 97,125,057.07

1. Rp for Week 1 = (OE ending – OE beginning) / OE beginning

Rp for Week 1 = (97,125,057.07 - 100,000,000) / 100,000,000
Rp for Week 1 = -2.87%
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Active Portfolio
Beginning of Week 1 (28/01/2020)
Price per
  Company No. of Shares share MV
Unilever Pakistan Foods
1 (UPFL) 2150 7601 16,342,150.00
Murree Brewery
2 company Ltd. (MUREB) 15000 650.63 9,759,450.00
Fauji Cement Company
3 Ltd.(FCCL) 300000 16.98 5,094,000.00
Indus Motor Company
4 Ltd.(INDU) 10000 1072.47 10,724,700.00
Pakistan Tobacco
5 Company (PAKT) 12000 1999 23,988,000.00
Hascol Petroleum Ltd.
6 (HASCOL) 80000 25.47 2,037,600.00

7 Systems Ltd. (SYS) 60000 128.51 7,710,600.00

Glaxosmithkline (Pak)
8 Ltd. (GLAXO) 45000 168.9 7,600,500.00
Philip Morris (Pakistan)
9 Ltd. (PMPK) 3500 2337.5 8,181,250.00
Gadoon Textile Mills
10 (GADT) 10000 217.44 2,174,400.00
  Total Value of Shares 93,612,650.00
 
Cash leftover   6,387,350.00
MV of Portfolio 100,000,000

BALANCE SHEET
Total Assets 100,000,000
Total Liability -
Owners’ Equity 100,000,000

Reasons for buying stocks on 28th Jan

1. Unilever Pakistan Foods (UPFL) – FMCG sector of Pakistan has provided a healthy return to
investors due to growth in demand. Moreover, Unilever stock has shown a general upward trend
in stock price during December 2019 and January 2020 as a reflection of the growth in demand
for FMCG products in Pakistan.
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2. Murree Brewery Company Limited (MUREB) – 3% growth in 4th quarter of 2019 shows
strong signs for Murree Brewery as indicated by general increasing trend of share price.
3. Fauji Cement Company Ltd. (FCCL) – Range of Fauji Cement stock price has remained
between PKR 15 and PKR 17 for the past 3 months showing low risk. Due to stable cement
sector, it is a safe stock and a safety option in the portfolio.
4. Indus Motor Company Ltd. (INDU) – Despite downturn in demand, automobile sector has
maintained production levels and plan to continue reasonable levels of production throughout
2020. Indus Motor Company was the best performing among all other in the sector and so was
chosen for the portfolio.
5. Pakistan Tobacco Company Ltd. (PAKT) – Generally a high value stock, PAKT stood below
PKR 2000 at 28th January, 2020. Therefore, we purchased it in the expectation that it shall
increase over the next few days.
6. Hascol Petroleum Ltd. (HASCOL) – Hascol Is issuing more shares as an indication of better
performance of the company. “The board of directors of Hascol petroleum limited has approved
the increase in the ordinary paid up share capital of the company by issuing of a further
800,000,000 ordinary shares,” it said in a communiqué to the bourse on Wednesday.
7. Systems Ltd. (SYS) – Systems Ltd. stock price has been increasing steadily over the past 3
months from PKR 95, now up to PKR 128. With growth in IT sector, Systems Ltd. looks like a
solid investment option.
8. Glaxosmithkline (Pak) Ltd. (GLAXO) – GLAXO stock has been outperforming the KSE-100
index since June of 2019. As such, it remains a good investment option.
9. Philip Morris (Pak) Ltd. (PMPK) – PMPK was added to the portfolio as a long position with
the hopes that it will recover to a profitable position by the end of the project duration in April.
10. Gadoon Textile Mills (GADT) – Not only is the textile sector increasing production due to
increase in exports, but Gadoon textiles has been consistently outperforming KSE-100 index for 6
months.

Trading (01/02/2020)
Sold MV
Unilever Sold 2150 shares @ 7788 16,744,200.00
Murree Brewery Sold 15000 @ 685.75 10,286,250.00
Bought MV
Systems Ltd. Bought 24,000 shares @ 142.01 3,408,240.00
Service Industries Ltd. Bought 27000 shares @900 24,300,000.00

  Company No. of Shares Price per MV

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share

1 Systems Ltd. (SYS) 24,000 142.01 3,408,240.00

Service Industries Ltd.
2 (SRVI) 27000 900 24,300,000.00
Fauji Cement Company
3 Ltd.(FCCL) 300000 16.98 5,094,000.00
Indus Motor Company
4 Ltd.(INDU) 10000 1072.47 10,724,700.00
Pakistan Tobacco
5 Company (PAKT) 12000 1999 23,988,000.00
Hascol Petroleum Ltd.
6 (HASCOL) 80000 25.47 2,037,600.00

7 Systems Ltd. (SYS) 60,000 128.51 7,710,600.00

Glaxosmithkline (Pak)
8 Ltd. (GLAXO) 45000 168.9 7,600,500.00
Philip Morris (Pakistan)
9 Ltd. (PMPK) 3500 2337.5 8,181,250.00
Gadoon Textile Mills
10 (GADT) 10000 217.44 2,174,400.00

  Total Value of Shares     95,219,290.00

  Cash leftover     4,780,710.00

MV of Portfolio 100,000,000

BALANCE SHEET
Total Assets 100,000,000
Total Liability -
Owners’ Equity 100,000,000
Reasons for

1. Unilever sold due to the monitoring of historical trends that showed a steady price of 7600 but the
share price increased to 7788
2. Murree Brewery was sold because of the exhaustion in the share price which increased from 650
to 685
3. Systems Ltd. is showing a steady increase in prices, therefore we decided to purchase more shares
of systems ltd.
4. Services industries is also showing an increase in the price therefore analyzing the trend let us to
buy service industries.
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Ending of Week (04/02/2020)

Price per
  Company No. of Shares share MV
Service Industries Ltd.
1 (SRVI) 27000 930.95 25,135,650.00
Fauji Cement Company
2 Ltd.(FCCL) 300000 16.87 5,061,000.00
Indus Motor Company
3 Ltd.(INDU) 10000 1049.94 10,499,400.00
Pakistan Tobacco
4 Company (PAKT) 12000 2000 24,000,000.00
Hascol Petroleum Ltd.
5 (HASCOL) 80000 25.69 2,055,200.00

6 Systems Ltd. (SYS) 84,000 149.2 12,532,800.00

Glaxosmithkline (Pak)
7 Ltd. (GLAXO) 45000 176.21 7,929,450.00
Philip Morris (Pakistan)
8 Ltd. (PMPK) 3500 2397.95 8,392,825.00
Gadoon Textile Mills
9 (GADT) 10000 240.45 2,404,500.00

  Total Value of Shares   98,010,825.00

  Cash leftover     4,780,710.00

MV of Portfolio 102,791,535.00

BALANCE SHEET
Total Assets 102,791,535.00
Total Liability -
Owners’ Equity 102,791,535.00

1. Rp for Week 1 = (OE ending – OE beginning) / OE beginning

Rp for Week 1 = (102,791,535.00 – 100,000,000) / 100,000,000
Rp for Week 1 = 2.79%