TECHNICAL ANALYSIS

Technical analysis is an investment method that relies heavily on trends in data and is most actively used by short-term investors, or those looking for the perfect time to buy or sell.

Technical analysis investing follows three main principles that is central to its methodologies:

1. The movement of share prices occurs in patterns 2. These patterns repeat themselves 3. If you can correctly anticipate the arrival of a pattern then you can profit from it

IMPORTANCE OF TECHNICAL ANALYSIS

Technical analysis is a very important to know stock market trend, breath, strength of trend it apply for individual stock.

Technical Analysis is important in two ways that are:

Flow of funds indicators Market indicator

MCB Bank Limited, with more than 60 years of experience as one of the leading banks in Pakistan, was incorporated on July 9 in 1947. MCB is the fourth largest bank of Pakistan. Its wide network include fully facilitated branches all over Pakistan. It covers 125 cities, comprising of 978 branches out of which 262 have the ATM machines.

Capital Structure Profit and Loss Account Statement of Financial Position Profitability Ratios Investment Ratios Market ratios Risk Adequacy Horizontal Analysis of Profit and Loss Account Vertical Analysis of Profit and Loss Account

CAPITAL STRUCTURE
In 2010 the Share Capital of MCB is Rupee 7602 Million and in 2011 it become 8362 Million. Share Premium is constant in 2010 and 2011 which is 9703 Million. Reserves are increase by 1943 Million

PROFIT AND LOSS ACCOUNT

I have take the TOTAL INCOME that show a positive trend.
2006 26,244
60000 50000 40000 Total Income 30000 20000 10000 0 1 2 3 4 5 6 Years

2007 30,369

2008 34,275

2009 41,422

2010 43,099

2011 52,639

PROFIT AFTER TAX

2006 12,142 2007 15,266 2008 15,375 2009 15,495 2010 16,873 2011 19,425

25000

20000

15000
Profit After Tax Years 10000

5000

Statement of Financial Position

I have take the TOTAL ASSETS that show a positive trend.
2006 342,108
700000 600000 500000 400000 300000 200000 100000 0 1 2 3 4 5 6 Total Assets Years

2007 410,486

2008 443,616

2009 509,224

2010 567,553

2011 653,233

TOTAL LIABILITIES
2006 301,264
600000

2007 355,366

2008 385,180

2009 439,484

2010 488,349

2011 564,431

500000

400000 Total Liabilities 300000 Years

200000

100000

0 1 2 3 4 5 6

PROFITABILITY RATIO
I have take the RETURN ON AVERAGE EQUITY (ROE) that show a positive trend.
2006 45%
2010

2007 37.66%

2008 31.49%

2009 27.35%

2010 25.91%

2011 26.23%

2009

2008 Years ROE

2007

2006

Years
100% 100%

SWOT ANALYSIS
The analysis shows MCB Strengths, Weaknesses, Opportunities and Threats.

STRENGTHS
Largest ATM network in Pakistan Environment is friendly Modernized banking (online + Internet) Fully computerized, each department has to own PC.

WEAKNESSES
Not good marketing Difficulty in managing the extended network of branches Networking problems regarding ATM

OPPORTUNITIES
Establishing Foreign Branches Local Setup Expand Night banking facilities should be expanded in more branches.

THREATS
Irregularities of policies. Internet Banking Downsizing government

CONCLUSION
After the analysis of MCB I have concluded that MCB is fully committed and aimed to do exactly what is mention in the mission statement. MCB have qualified staff but still their lending and deposits pattern show artificial picture so bank should work on it.

RECOMMENDATIONS
Bank should show true picture of financial records in the Balance sheet. Make more investment in Islamic Banking. Branch Manager should not deal peoples very proudly this show a negative impact on people.