Hum Securities present Pakistan`s

Premier Islamic Financial Brokerage

Services.

WELCOME
To HUM SECURITIES LIMITED

Welcome to Hum Securities Limited. a renowned and reputed

brokerage house working as a corporate member of Karachi Stock
Exchange (KSE) since 2005.
Our Mission:
Working Together To Achieve Financial Goal

Financial crisis of 20072010

Thefinancial crisis of 2007 to the presentis a crisis triggered by a
liquidity shortfall in the United States banking system.It has resulted in
the collapse of large financial institutions, the bailout of banks by national
governments, and downturns in stock markets around the world.
The collapse of thehousing bubble, which peaked in the U.S. in 2006,
caused the values of securitiestied toreal estate pricingto plummet
thereafter, damaging financial institutions globally
securities suffered large losses during late 2008 and early 2009.
Economies worldwide slowed during this period as credit tightened and
international trade declined.Critics argued thatcredit rating agencies and
investors failed to accurately price theriskinvolved withmortgagerelated financial products.
Arab worldhad lost $3trillion due to the crisis.In April 2009,
unemployment in the Arab world is said to be a 'time bomb'.

Impact on Pakistans Economy

Pakistan is another country in South Asia that has been severely

affected by the financial crises. In fact, Pakistan seems to be one of
the hardest hit with this global crisis. Its economy is already in crises.
Pakistan is also facing a serious liquidity crunch, with the only
solution being international support. The only option for Pakistan is to
approach international monetary fund, which will set highly stringent
conditions for the nation.

EFFECTS ON STOCK MARKET

May 23: Record high inflation in the month of May, 2008
resulted in the unexpected increase in theinterest ratesby
State Bank of Pakistanwhich eventually resulted in sharp fall in
Karachi Stock Exchange.
July 16: KSE-100 Index dropped one-third from an all-time high
hit in April, 2008 as rising pressure on shaky Pakistan's coalition
government to tackleTalibanmilitants exacerbates concern
about the country's economic woes.
August 18: KSE 100 Index rose more than 4% after the
announcement of the resignation of PresidentPervez Musharraf
butCredit Suisse Groupsaid that Pakistan's Post-Musharraf rally
in Stock Exchange will be short-lived because of a rising fiscal
deficit and runaway inflation.
August 28: Karachi Stock Exchange set a floor for stock prices
to halt a plunge that has wiped out $36.9 billion ofmarket value
since April.

THE ALTERNATE TO ELEMINATE CRISIS

Islamic banking and finance is a topic of the hot discussion world over
especially after economic meltdown. Leading economists and
financial experts have recognized Islamic finance as the better and
sustainable alternative to the problems of modern economic order.
Developed and developing nations of east and west including London,
Singapore, Hong Kong and Paris are moving for Islamic finance hubs.
Throughout the current economic and financial crisis one contrarian
statistic has stood out. Financial assets offered by the Islamic
Financial Services Industry (IFSI) and generally classified as Shariahcompliant, were less affected by the crisis.

ISLAMIC INVESTMENT IDEOLOGY

Islam provides us comprehensive and straight path of life, which

covers all of its aspects, and guide us accordingly, through this we
handle individual and social, material and moral, economic and
political, legal and cultural, national and international aspects of
life.
In fact earning, saving and investment can become acts of Ibadah
if done according to Shariah.

Islamic Industry Products and Services

Islamic banking refers to a system of banking or banking
activity that is consistent with the principles of Islamic law
(Shariah) and its practical application through the
development of Islamic economics
Takaful is an Islamic insurance concept which is grounded in
Islamic muamalat (banking transactions), observing the rules and
regulations of Islamic law.
Sukuk ("legal instrument, deed, check") is the Arabic name
for financial certificates, but commonly refers to the Islamic
equivalent of bonds. Since fixed income, interest bearing
bonds are not permissible in Islam, Sukuk securities are
structured to comply with the Islamic law and its investment
principles, which prohibits the charging, or paying of interest.
Ijarah means lease, rent or wage. Generally, Ijarah concept
means selling the benefit of use or service for a fixed price or
wage. Under this concept, the Bank makes available to the
customer the use of service of assets / equipments such as
plant, office automation, motor vehicle for a fixed period and
price.

Industry
In Pakistan
Although PakistanIslamic
is a late starter
to systematically
promote IF
relative to few other Countries, growth in its IF-industry is
substantive. Today Pakistan has
6 full fledged Islamic banks; 4 operational
13 conventional banks with Islamic banking branches
Over 150 total licensed Islamic banking branches in 25 cities & town
2 licensed Takaful companies
Half dozen Islamic mutual funds (IsMFs) with total assets of over Rs7
billion (US$ 0.12 billion)
The growth and development of the Islamic industry has been
remarkable after its induction in the countrys economical system
parallel to the conventional industry. The growth rate is expected to
be 15% every year. The increasing number of institutions that are
incorporating with the Islamic modes of financing clearly elaborates
the potential of this huge profitable industry.

Islamic Industry Pyramid

Islamic Industry Pyramid

INTRODUCTION HUM ISLAMIC BROKERAGE (HIBS)

Hum Islamic Brokerage Services (HIBS) The Premier Islamic brokerage

services in Pakistan. HIBS is a newly established department of Hum
Securities Limited, a renowned and reputed brokerage house working as a
corporate member of Karachi Stock Exchange (KSE) since 2005.
HIBS offers Shariah Compliant professional and technologically advance
brokerage services to all investors looking for value added brokerage
services. Our objectives are:

HUM ISLAMIC BROKERAGE (HIBS) OBJECTIVES:

HIBS brings to you a wide range of investment options

which are profitable and at the same time compliant
to Islamic / Shariah standards.

HIBS provides you best financial services which are

strictly
Shariah compliant and follows best international
standard practices.

Investment in Stocks / Shares

Islamic Investment Pools
Online Trading
Expert Advisory Service Commodity Trading
Dedicated Support by Calls, SMS , and E-Mails
Profit and Loss Sharing account

WHY BUY STOCKS AS AN INVESTMENT ?

At present, Investment can be made in many different ways like

Bonds, Bank deposits, saving certificates, all these investments are
interest based. The Real Estate is comparatively non liquid
investments.
On the other hand Stocks are highly liquid and provides interest
(Riba) free investment through Shariah Compliance stocks under
the guidance of qualified and reputed Shariah experts who select
100 stocks under the strict Shariah Screening Criteria.

SHARIAH SCREENING CRITERIA

1.Business of the Investee Company
2.Debt to Total Assets
Should be less than or equal to 40 %
3.Non-compliant Investments to Total Assets
non compliant investments to total assets should be less than 33%.
4.Non-complaint Income to Total revenue
non compliant income to total revenue should be less than 5%. Total
revenue
5.Illiquid Assets to Total Assets
The ratio of illiquid assets to total assets should be at least 20%.
Illiquid asset
6.Net Liquid Assets to Share Price
The market price per share should be greater than the net liquid assets

WHAT IS KMI-30 INDEX

The objective of KSE- Meezan Index (KMI-30),

is to serve as a gauge for measuring the performance of Shariah

Compliant Equity Investment,
and it also provides investors with a suitable benchmark for
comparing returns on their Shariah Compliant Investments.

TECHNICAL SCREENING CRITERIA

1.Company should not in a default counter

2.Available in CDC
3.Listing history of at least two months on KSE
4.Operational track record at least one financial year
5.Minimum free float share of 5%
6.Securities are traded for 75% of the total trading days
7.Mutual funds are intangible for inclusion in KMI-30.

Companies In KMI -30 INDEX

KMI-30 :

1. Attock Cement Pakistan Limited

16. Oil and Gas
Development Ltd.
2. Attock Refinery Limited
17. Pakistan Oil Field Limited
3. Attock Petroleum Limited
18. Pakistan State
Oil Limited
4. Atlas Battery Limited
19. P.T.C.L. oA
5. D.G. Khan Cement Company Limited
20.Packages Limited
6. Fauji Fertilizer Company Limited
21. Pak Refinery Limited
7. Fauji Fertilizer Bin Qasim Limited
22. Pak Suzuki Motors
Limited
8. GlaxoSmithKline Pakistan Limited
23.Siemens Pakistan
Engineering limited
9. ICI Pakistan Limited
24. Sitara Peroxide
limited
10. Indus Motor Company Limited
25.Pakistan Petroleum
Limited
11. Lottee Pakistan PTA Limited
26. Sui northed Gas
Pipeline limited

Performance Evaluation of KMI from

past 2 Years

Difference Between Conventional and Islamic

Conventional Brokerage
Islamic Brokerage
Brokerage
System
Intraday trading is prohibited

Intraday trading is allowed

Margin finance is not allowed

Margin finance is allowed

Cash settled futures is

prohibited

Cash settled in future is

allowed

Investment in banks,

insurance and any company

conducting non-shariah
business is not allowed

Investment in banks,

insurance companies, etc.

is allowed

OUR PRODUCTS

Brokerage :
Dedicated dealer conduct transaction on the
behalf oc client with a restriction to follow
complete shariah scripts with also islamic
rules and regulations.
Zero Commision Investmnet Pool:
No commission will be charged,
consultancy fee will be cahrged @ 25% in
term of profit.
Invesment Pool Profit & Loss Sharing
Commission with normal bracket wil be
charged,
Profit and loss wil be beared by company @
20:80

THANK YOU!