Investment Analysis & Portfolio Management

Portfolio Analysis

WEEK (14th March to 28th March)

Submitted To: Dr. Sohail Zafar

Submitted By: Anam Sohail

M. Ali Tahir

M. Umair Qayyum

Hammad Zahid Malik

Lahore School of Economics

 Portfolio Management Weekly Report

Serial Number of
Company Po (Rs.) Wo (Rs.) P1 (Rs.) W1 (Rs)
No Shares

Pakistan State 466.9 19775549.5

1 42355
Oil 468.60 19847553
2 SNGPL 193424 140.6 27195414.4
139.90 27060017.6
3 ASC 393081 48.9 19221660.9
47.04 18490530.24
4 Dost Steel ltd 1361470 14.05 19128653.5
13.99 19046965.3
5 ENGRO Corp 27174 391.65 10642697.1
389.45 10582914.3
Lucky 887.95 10312651.3
6 11614
Cement 882.68 10251445.52
106276626.7
Total
105279426

Passive Portfolio

Where

P0 = Prices of 14th march 2017

P1 = Prices of 28th march 2017

W0 = Initial wealth which is Rs/ 1000000

W1 = Wealth calculated by number of shares multiplied by closed prices of

st
28 February 2017= 106070387.6

Return

Rate of Return = (W1-W0)/W0

ROR = 106276626.7- 105279426/105279426

Periodic Rate of Return = 0.947%

Annual Rate of Return = (1 + Periodic Rate of Return/No of Weeks for

trading)^52 - 1

= 2.51%
 MARKET PORTFOLIO

28th Mar, 2017

No of Artificial shares Purchased = 100,000,000/49859.39
= 2005.64

Amount Invested (Wo) = 2005.64 * 48593

= Rs. 97428965

14h Mar, 2017

KSE-100 Index = 48,500
Value of Investment at the end of week 1 (W1) = 48500* 2005.64

= Rs 97273540

Rpweek4= (W1 Wo)/Wo

= (97428965-97273540)/ 97273540

Rpweek4 = Rate of Return = 0.159%

 Levered Portfolio

Serial Number of
Company Po (Rs.) Wo (Rs.) P1 (Rs.) W1 (Rs)
No Shares

Pakistan State 466.9 19775549.5

1 42355
Oil 468.60 19847553
2 SNGPL 386847 140.6 54390688.2
139.90 54119895.3
3 ASC 393081 48.9 19221660.9
47.04 18490530.24
4 Dost Steel ltd 2722940 14.05 38257307
13.99 38093930.6
5 ENGRO Corp 54348 391.65 21285394.2
389.45 21165828.6
Lucky 887.95 10312651.3
6 11614
Cement 882.68 10251445.52
Total 161969183.3 163243251.1

Weekly Interest to be Paid = (6%/52) * 50,000,000

= Rs. 57692

Ending Owners Equity (Week 4) = Market Value of Shares Loan Interest Paid
= 161969183.3 50,000,000 57692

= Rs. 113185559

Periodic Rate of Return

Rpweek4 = (End OE Beg OE)/Beg OE

= (113185559 100000000)/100000000

Periodic Rate = 11.13%

Annualized Rate of Loss = 5.76%

Active Portfolio
 Number of
Serial No Company Po (Rs.) Wo (Rs.) P1 (Rs.) W1 (Rs)
Shares
87982 20640592. 20640592.86
1 Akzo Nobel 234.60
86 234.60
2 SNGPL 193424 103.40 20,000,000 140.6 27060017.6

3 ASC 393081 50.88 20,000,000 48.9 18490530.24

4 Dost Steel ltd 1361470 14.69 20,000,000 14.05 19046965.3

5 ENGRO Corp 27174 368.0 10,000,000 391.65 10582914.3

6 PEL 12542 90 11288277 1128780

92.80

10192886 97992900.7
Total 9.9

Return on Portfolio (Week6) = (W1 W0)/W0

= (97992900.7 101928869.9)/ 101928869.9

Periodic profit on Portfolio (Week 6) = -3.8%

Stocks Traded

This week we have sold packages worth 20640592.0 and bought Akzo Nobel shares for that
amount, as the price of Akzo Nobel are expected to rise according to technical analysis, and
studying historic trends.