Investment Analysis & Portfolio Management

Portfolio Analysis

WEEK (21st February to 28th February)

Submitted To: Dr. Sohail Zafar

Submitted By: Anam Sohail

M. Ali Tahir

M. Umair Qayyum

Hammad Zahid Malik

Dated: 26/02/2017

Lahore School of Economics

 Portfolio Management Weekly Report Week 3

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

19462122.
1 Pakistan State Oil 42355
459.50 5 460.00 19483300
20696368.
2 SNGPL 193424
107.00 0 130.00 25145120
19260969.
3 ASC 393081
49.00 0 46.00 18081726
21238932.
4 Dost Steel ltd 1361470
15.60 0 15.10 20558197
9660900.4
5 ENGRO Corp 27174
355.52 8 388.60 10559816
10071660.
6 Lucky Cement 11614
867.20 8 868.90 10091404

103919563
Total 1003909
52.8
Passive Portfolio

Where

P0 = Price of 14th February 2017

P1 = Prices of 21st February 2017

W0 = Initial wealth which is Rs/ 1000000

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

21st February 2017= 103788074.4

Return

Rate of Return = (W1-W0)/W0

ROR = 103919563- 100390952.8/100390952.8

Periodic Rate of Return = 3.54%

Annual Rate of Return = (1 + Periodic Rate of Return/No of Weeks for
trading)^52 - 1

= 42003.91%

MARKET PORTFOLIO

21st February, 2017

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

Amount Invested (Wo) = 2005.64 * 49015.09

= Rs. 98306625.11

28thth February, 2017

KSE-100 Index = 49767.91
Value of Investment at the end of week 1 (W1) = 49534* 2005.64

= Rs 99347372

Rpweek3 = (W1 Wo)/Wo

= (99347372-98306625.1)/ 98306625.11

Rpweek3 = Rate of Return = 1.05%

 Levered Portfolio

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

19462122. 19483300
1 Pakistan State Oil 42355
459.50 5 460.00
41392629. 50290110
2 SNGPL 386847
107.00 0 130.00
19260969. 18081726
3 ASC 393081
49.00 0 46.00
42477864. 41116394
4 Dost Steel ltd 2722940
15.60 0 15.10
19321800. 21119632.8
5 ENGRO Corp 54348
355.52 96 388.60
10071660. 10091404.6
6 Lucky Cement 11614
867.20 8 868.90
1519870
Total 46.3 160182567.4

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

= Rs. 57692

Ending Owners Equity (Week 2) = Market Value of Shares Loan Interest Paid
= 160182567.4 50,000,000 57692

= Rs. 110,124,875

Periodic Rate of Return

Rpweek2 = (End OE Beg OE)/Beg OE

= (110,124,875 100000000)/100000000

Periodic Rate = 10.12%

Annualized Rate of Loss = (1-0.078) ^ 52 - 1

 = -93.1%

Active Portfolio

Return on Portfolio (Week 2) = (W1 W0)/W0

= (104982737 100000000)/ 100000000

Number of
Serial No Company Po (Rs.) Wo (Rs.) P1 (Rs.) W1 (Rs)
Shares
1 Packages Ltd. 22985.07 870.13 20,000,000 870.13 20000000
2 SNGPL 193424 103.40 20,000,000 130.00 25145120
3 ASC 393081 50.88 20,000,000 46.00 18081726
4 Dost Steel ltd 1361470 14.69 20,000,000 15.10 20558197
5 ENGRO Corp 27174 368.0 10,000,000 388.60 10559816
6 TRG 179179.35 55.81 10,000,000 10637878
59.37

Total 104982737

Periodic Loss on Portfolio (Week 2) = 4.982%

Stocks Traded

Stocks Sold: We purchased BOP and TRG based on the data of the last week but now, we
believe that BOP share prices will continue to fall as this stock has witnessed the maximum in
the past weeks, so to avoid further loss we are selling its shares and are investing in 1 other
stocks.

Stocks Purchased: Overall, as of 28st February, 2017 the Market Index has gaines and the
prices of stocks have seen correction. We believe that these prices and the overall index can
increase in near future and thus we are diversifying our investment in stocks. The amount
received from the sale of BOP is invested in purchasing the stocks of Packages. According to our
analysis we believe these stocks are currently undervalued and therefore destined to increase in
future hence we have bought them.