Internship Report on
Market 786 Private Limited
Submitted By
Ghulam Basit (FA16-BBA-055)
Supervised By
Ms. Tabassum Rashid
Department of Management Sciences
COMSATS University Islamabad, Abbottabad Campus
December 2019
Internship Report on
Market 786 Private Limited
Submitted By
Ghulam Basit (FA16-BBA-055)
Supervised By
Ms. Tabassum Rashid
This internship report is submitted in partial fulfillment of the requirements for the degree
of Bachelor of Business Administration awarded by the COMSATS University Islamabad
(Abbottabad Campus)
Department of Management Sciences
COMSATS University Islamabad, Abbottabad Campus
December 2019
Student’s Declarations
I confirm this work, which I now submitting for review is purely my own effort and work and
it was not took from the other people work. I accept that plagiarism, conspiracy and duplication
in the university are severe and serious crime and acknowledge the sanctions that would be
applied if I were involved in plagiarism, conspiracy or copying, but because it seeks help from
many other sites and source it has very little plagiarism. I take the time to read the standard laid
down the report. I done everything as of myself, I have mentioned certain official sites like the
Pakistan stock exchange, NCCPL, CDC, other official websites, and the internet and books
some business newspaper. I have reviewed the recommended guidelines in this document. I
have stated my own research in this report.
This task and any other section thereof, was not submitted for review in this or any other degree
course to me or any other student.
Signature
ii
Name:
Ghulam Basit
Registration #
FA16-BBA-055
Supervisor’s Certificate
This is to verify that Mr. Ghulam Basit has fulfilled all comments, recommendation and
suggestion provide by both internal evaluator and external reviewers. The report title is “Market
786 Private Limited”.
Submitted for action appropriate
____________________
Supervisor’s Signatures
Ms. Tabassum Rashid
Supervisor’s Name
iii
Approval Sheet
Internship Report on Market 786 Private Limited
By
Ghulam Basit
(FA16-BBA-055)
_____________________
Mr. Aftab Qadir Kant
(External Examiner)
__________________________
Ms. Tabassum Rashid
(Report Supervisor)
__________________________
Dr. Kashif Rashid
(Head of Department)
DEPARTMENT OF MANAGEMENT SCIENCES
COMSATS University Islamabad, Abbottabad
Campus
December 2019
iv
Scan Copy of Internship Letter
v
Dedication
All this work is dedicated to my Parents, brothers and uncle who enabled me to work so hard
and to support me in every challenging period of my life. My parents support and help me
achieve my dreams and my vision throughout my life. I initiate this work with my dad, who is
not financially good, but my dad helped me financially and morally. Secondly, I want to
dedicate this work to my teacher who transferred their greatest knowledge to me and improved
my skills to lift my level.
vi
Acknowledgements
In the name of ALMIGHTY ALLAH, the most merciful, and the beneficent, I am very much
grateful upon his all the blessings that he blessed upon me. Without his guidance I was not be
able to write this report.
I am very thankful to my teachers without them it was not possible for me to complete my
degree. I am very grateful to Mr. Naveed Jan who really motivate me and provided me a
platform and direction which is interrelated to about my skills.
A special thanks to my supervisor Ms. Tabassum Rashid, her guidance, support and valuable
time helped me a lot in making this report. Because of her motivation and though her
outstanding supervision I have completed this report successfully and am also grateful to my
Boss Sir Yaqoob who help me a lot to polish my skills and help me to complete my report.
Finally, I am very grateful to market786 management for giving me a chance to work with
internships. I'd like to thank Mr. Noor Arshad Maier, Chief Executive Officer of Market786,
for learning much from Market786's management.
vii
Table of Contents
Table of Contents
Student’s Declarations ............................................................................................................. ii
Supervisor’s Certificate .......................................................................................................... iii
Approval Sheet ........................................................................................................................ iv
Scan Copy of Internship Letter .............................................................................................. v
Dedication ................................................................................................................................ vi
Acknowledgements ................................................................................................................ vii
Table of Contents .................................................................................................................. viii
List of Tables ........................................................................................................................... xi
List of Figures ......................................................................................................................... xii
LIST OF Abbreviation/ACRONYMS................................................................................. xiii
EXECUTIVE SUMMARY ................................................................................................... xv
Chapter 1 .................................................................................................................................. 1
Introduction to the Report ...................................................................................................... 1
1.1. Study Background ..................................................................................................................... 1
1.2. Study Scope................................................................................................................................. 1
1.3. Methodology ............................................................................................................................... 1
1.3.1. Primary Data ....................................................................................................................... 1
1.3.2. Secondary Data ................................................................................................................... 2
1.4. Study Objectives......................................................................................................................... 2
1.5. Merits of study............................................................................................................................ 3
1.6. Study Limitations ....................................................................................................................... 3
1.7. Study Scheme ............................................................................................................................. 3
Chapter 2 ........................................................................................................................................... 5
Introduction to the Pakistan Stock Exchange ....................................................................... 5
2.1. Background; ...................................................................................................................... 5
2.2. Karachi Stock Exchange; ................................................................................................. 5
2.3. Lahore and Islamabad Stock Exchange; ........................................................................ 6
2.4. Indices ................................................................................................................................ 6
2.4.1. Equity Indices ...................................................................................................................... 6
2.4.2. Islamic indices ..................................................................................................................... 6
2.4.3. Sectorial Indices .................................................................................................................. 6
2.5. Markets; ............................................................................................................................. 7
viii
2.6. Trading and Settlement;................................................................................................... 8
2.7. Regulatory bodies of Pakistan Stock Exchange; ............................................................ 8
2.8. Components of Pakistan Stock Exchange: ..................................................................... 8
2.9. Market 786 Private Limited: ........................................................................................... 8
2.10. Total Capitalization of Market 786: ............................................................................ 10
2.11. Organization Structure of the Market 786:................................................................ 11
2.12. Brokerage Houses in Pakistan: .................................................................................... 11
2.13. Services they Performed and Offered: ........................................................................ 11
2.14. Working Structure of Market 786 Private Limited: ................................................. 13
2.16. Departmentalization: .................................................................................................... 14
2.16.1. Research Department: .................................................................................................... 14
2.16.2. Marketing Department: ................................................................................................. 15
2.16.3. Trading Department: ...................................................................................................... 15
2.16.4. IT Department: ............................................................................................................... 15
2.16.5. Account Department: ..................................................................................................... 15
Chapter 3 ................................................................................................................................ 17
3.1. Portfolio Management: ................................................................................................... 17
3.2. Essential of asset allocation ............................................................................................ 18
3.3. Diversification: ................................................................................................................ 19
3.3.1 Classification of Markets according to the Morgan Stanley Capital Index .................. 19
3.3.2 Classification of Markets according to Capitalization ................................................... 20
3.3.3. Major Sector of the Pakistan Stock Exchange: .............................................................. 21
3.4. Assets Allocation and Return: ....................................................................................... 22
3.5. Compensate the Risk: ..................................................................................................... 23
3.6. Evaluation of Assets:....................................................................................................... 23
3.7. Rebalancing of Portfolio: ............................................................................................... 24
3.8. Marketing Call ................................................................................................................ 25
3.9. Technical Analysis .......................................................................................................... 25
3.9.1. Moving Averages ............................................................................................................... 25
3.9.2. Technical indicator ........................................................................................................... 25
3.10. Oil and Gas Marketing companies of Pakistan: ........................................................ 26
3.10.1. MS Consumption province wise: ................................................................................... 26
3.10.2. HSD Consumption: ......................................................................................................... 27
3.10.3. Consumption of Gas........................................................................................................ 28
3.10.4. Sui Northern Gas Pipeline Limited: .............................................................................. 28
ix
3.10.5. Usage of Gas: ................................................................................................................... 29
3.10.6. Sui Sothern Gas Corporation Limited: ......................................................................... 29
3.10.7. Pakistan State Oil ............................................................................................................ 30
3.10.8. Attock Petroleum Limited .............................................................................................. 31
3.10.9. Shell Petroleum Limited ................................................................................................. 31
3.10.10. Hascol Petroleum Limited ............................................................................................ 31
Chapter 4 ................................................................................................................................ 32
Finding and Recommendation .............................................................................................. 32
4.1. Findings............................................................................................................................ 32
4.2. Strengths .......................................................................................................................... 32
4.3. Weakness ......................................................................................................................... 33
4.4 Recommendations ............................................................................................................ 33
References ............................................................................................................................... 35
x
List of Tables
TABLE 2.2 MARKET CAPITALIZATION....................................................................................... 10
TABLE 2.11 ORGANIZATION STRUCTURE .................................................................................. 11
TABLE 2.4. STAFF OF MARKET 786 PRIVATE LIMITED ............................................................ 12
TABLE 2 .15. COMMISSION SLAB OF MARKET 786 .................................................................... 13
xi
List of Figures
FIGURE 2-1 MARKET EXPOSURE ................................................................................................. 9
FIGURE 2-2 MARKET CAPITALIZATION ..................................................................................... 10
FIGURE 3-10 CONSUMPTION ..................................................................................................... 26
FIGURE 3-10.1 CONSUMPTION OF PETROL PROVINCE WISE ....................................................... 27
FIGURE. 3.10.2. HSD ................................................................................................................ 27
FIGURE 3.10.3. CONSUMPTION OF GAS ..................................................................................... 28
FIGURE. 3.10.4. SALES OF SNGPL............................................................................................ 29
FIGURE.3.10.5. CONSUMER OF GAS .......................................................................................... 29
FIGURE. 3.10.6. SALES OF SSGC .............................................................................................. 30
FIGURE. 3.10.7. SALES OF PSO ................................................................................................. 30
FIGURE. 3.10.10. NET SALES OF HASCOL PETROLEUM ............................................................. 31
xii
LIST OF Abbreviation/ACRONYMS
COMSATS
COMMISSION ON SCIENCE AND TECHNOLOGY FOR SUSTAINABLE
Development in the South
HEC
Higher Education Commission
PSX
Pakistan stock Exchange
KSE
Karachi Stock Exchange
ISE
Islamabad Stock Exchange
LSE
Lahore Stock Exchange
CEO
Chief Executive Officer
MSCI
Morgan Stanley Capital International
OGTI
Oil and Gas Tradable index
BKTI
Banking Sector trading Index
IPO
Initial Public Offering
NDM
Negotiable Deal Market
MTS
Margin Trading System
CFA
Charted Financial Analyst
MPT
Modern Portfolio Theory
EMH
Efficient Market Hypothesis
MACD
Moving Average Convergence Divergence
OBV
On Balance Volume
RSI
Relative Strength Index
HSD
High Speed Diesel
MS
Motor Spirit (Petrol)
MMCFD
Million Cubic Feet Per Day
LPG
Liquefied Petroleum Gas
MT
Metric Ton
SNGPL
Sui Northern Gas Petroleum Limited
SSGCL
Sui Southern Gas Company Limited
SECP
Security and exchange commission of Pakistan
OCAC
Oil company advisory council
NCCPL
National clearing company of Pakistan
xiii
CDC
Central depository company
MUFAP
Mutual Fund Association of Pakistan
KIBOR
Karachi Interbank Offered Rate
PSO
Pakistan State Oil
xiv
EXECUTIVE SUMMARY
This report on Market 786, the Pakistan stock exchange and Pakistan Mercantile exchange
corporate brokerage. Provides a complete range of equity and commodity trading financial
services. Mr. Saleem But, owner of the company. Founded first in Karachi and then in Lahore,
Market786. It offers both equity and commodity services and trading. Market 786 currently
has 9 branches throughout Pakistan in 7 cities.
This report included the first chapter of the report's introduction and data collection method
and the scope and limitations of the study.
The second chapter of the report is about the Pakistan stock exchange and their markets the
companies which are listed in the stock exchange and indices of the Pakistan stock market.
This chapter tells us that what’s the trading mechanism and how to trade in stock market. Its
component and regulatory bodies of equity market and general overview of brokerage house
that services that they are providing.
The third chapter of this document discussed how Market 786 private limited Lahore branch
perform, role of the brokerage house and responsibilities. The brief discussion about the
departments of the brokerage house. The departments that worked during the internships are
mentioned here and a financial analysis of the overall performance of market 786 is conducted.
The final chapter concludes from a document that all the data collected, and information
obtained are the products of Market 786. This chapter is critical as it includes advice based on
outcomes. This can help Market 786 to boost its products and overall image.
xv
Chapter 1
Introduction to the Report
1.1. Study Background
To complete BBA (Hons) degree at COMSATS University Islamabad (Abbottabad), all
undergraduates are compulsory to experience internship in different organizations to gain realworld knowledge. The benefits of this practical experience, to this internship we can find out where
and when to apply the academic knowledge gained throughout the studies. HEC made it essential
for internee to make in-depth internship report about what they had done in the organization and
learned from working experience. I have done six weeks internship in the organization. This report
is based on Market 786 Private Limited, Johar Town G-3 Block Lahore.
1.2. Study Scope
The scope of study was to how one can do business in the Pakistan Stock exchange. We cannot do
business directly in the stock market directly we go to this market through the different brokers.
Investor goes to the different brokerage house to invest their money in the stock exchange. There
are almost 400 something brokerage houses in the Pakistan but 70 to 80 are active in trading and
the Market 786 is one of them. Individual investors and the financial institution buy and sell stocks
through the brokerage houses and the broker charge commission to provide them financial
services.
1.3. Methodology
The methodology used to collection of data is both secondary and primary data. The primary data
I mostly collected from my personal judgements from the organization and different emotion
sentiments which have impact on the market. Emotional sentiments are that when market is in their
bearish trend investors sells their stocks due to the panic which is the weapon of the market.
Secondary data I mostly collected from the Organization, Pakistan Stock Exchange official
website, OCAC, SECP, CDC, NCCPL, and Business Newspapers.
1.3.1. Primary Data
Primary data including the following;
1
❖ Personal observation during the 42 days working with the employees of Market 786.
❖ Discussion face to face with the CEO, Traders and marketer in the Market 786.
❖ I also collect the data by asking questions to the employee of the company.
❖ Interaction with the investor and potential client.
1.3.2. Secondary Data
Secondary data includes as fallow;
❖ From the organization official website market786.com.pk
❖ Maier Research group.
❖ Pakistan Stock Exchange official websites dps.psx.com.pk
❖ Security and Exchange commission of Pakistan secp.gov.pk
❖ National clearing company of Pakistan limited nccpl.com.pk
❖ Central depositary company of Pakistan cdcpakistan.com
❖ Annual reports
❖ Oil company advisory council
❖ Business Recorder
❖ Investing.com
❖ Customnews.com
❖ Tribune.com
1.4. Study Objectives
❖ To gain knowledge about trading in the Stock Exchange.
❖ To get the knowledge of the companies and their performance of share and to buy sell the
stocks of the company.
❖ To understand how deal with investor and the potential clients and Market 786 get good
business in the current economic condition.
❖ Gain knowledge about the companies and their shares performance.
❖ To know about the impact of the stock exchange on the economy of the country.
❖ To recognize how one individual, choose the best share which is lucrative for him.
❖ To maintain and make their own portfolio for the handsome amount of profit.
❖ To maximize the return of the stock and to minimize the risk of the shares.
2
❖ To know about how stock prices, behave according to the current given information.
1.5. Merits of study
The training of the stock market will be valuable to the business graduate as an entrepreneur
especially for the finance and marketing specialized students. This study includes the overall
analysis of the company performance in their sector and in the country. This training also contains
the complete analysis of the economic condition of the nation and examine the polices of the state
bank of Pakistan about the inflation and interest rate. We also study how interest rates and inflation
oscillate in the country and what’s the impact of the interest rate on the economic condition of the
country. The upcoming internees can also take help from this report to make their own internship
reports.
1.6. Study Limitations
I have 3-month experience of this field as an observer. It’s very hard to gather all the information
about stock exchange and brokerage house due to limited time constraint of six weeks. Its due to
the profound nature of the job staffs time to time they were not able to deliver correct information
due to security purposes the had undisclosed from the internee.
1.7. Study Scheme
This report distributed into four chapter including this one.
Chapter 1is “Introduction to Report” the first chapter is all about the introduction and what was
the data collection methodology which includes study background, study scope, methodology,
study objectives, merits of study, study limitations and study scheme.
Chapter 2 is “Introduction to the Pakistan Stock Exchange and Market 786” which contains
an introduction of the organization, overview of the stock market and general overview of the
Market 786, total capitalization and its competitors.
Chapter 3 is “Portfolio Management” which contain information about Lahore Johar Town
branch of Market 786, this chapter also discuss knowledge I gain from the working inside the
organization,
Organization
hierarchy,
number
of
employees,
departmentalization, financial analysis and evaluation with competitors.
3
working
structure,
Chapter 4 is “Findings and Recommendations” which include positive and Negative result of
the company have been made during the working in the organization like strengths, weaknesses
and recommendations for improvement.
4
Chapter 2
Introduction to the Pakistan Stock Exchange
2.1. Background;
Pakistan Stock Market was founded in January 2016, when Pakistan’s government decided to
combine the states three large exchanges into one consolidated market. Suleiman Mehdi the
chairman and the Richard Morin CEO of the PSX, there are 553 companies are listed in the PSX
and the seven indices of PSX, total market capitalization of PSX Rs 6,644,225 billion.
Investors of the PSX Individuals, Immigrants, Banks, Corporations, Mutual Funds, Insurance
Companies, organizations, and the Brokerage Companies.
In 2002, Karachi Automated Trading System was launched with a capacity of 1 Million traders
per day and the potential to provide access to an infinite number of people.
Stock market in Karachi, Islamabad and Lahore in Pakistan. In May 2017, PSX was categorized
as an emerging MSCI market when the FTSE considers PSX as a secondary Emerging market.
After the merger of Karachi, Lahore and Islamabad, the Pakistan stock exchange was formed on
11 January 2016.
2.2. Karachi Stock Exchange;
Stock market is the national backbone which provide a massive investment platform where the
investor invests their money and contribute towards their nation economy. Equity market relies on
the nation economic condition. In September 1947, Karachi stock exchange was established.
Pakistan’s initial economic position was at the lowest level. When Karachi Stock Exchange was
established, five companies have been registered at that time and its total market capitalization was
37 million rupees, Habib bank of Pakistan was the first one who is registered in the Karachi Stock
Exchange. We cannot do business directly in the stock exchange we must have to open an account
with the broker trade in the stock market was conducted via the brokerage firm.
In 1948, Karachi stock exchange grant 100 license of authorization that has a charge of 2,500 each
license then subscription fees per license rises around 18,000 in 1955. The first index of Karachi
stock exchange was KSE50 and KSE100 index in 1991, followed by another index including
5
KSE30, KMI30 and KSE all stock index. Karachi stock transformed into a digital market in 2002
and launched a regular automated system.
2.3. Lahore and Islamabad Stock Exchange;
The Lahore Stock Exchange is based in Lahore. LSE originated in October 1970, below the
Security and Exchange regulation of 1969 by the administration of Pakistan. LSE at first have 83
Corporations with 2.51 trillion market Cap.
Islamabad stock Exchange (ISE) was founded in Islamabad on 25 October 1989 as a guarantee
limited company. On January 7, 1992 it was approved as a stock Exchange and the trading began
in July 1992. Islamabad Stock Exchanges first index is ISE10. In ISE government introduce new
technology and a digital marketplace of the Stock Exchange.
2.4. Indices
The Stock index is a measure of a segment of the stock market.
2.4.1. Equity Indices
❖ KSE 100: This is PSXs most famous index, based on market capitalization contains the
biggest corporations and represent all sectors of the market.
❖ KSE 30 index comprises top 30 most liquid companies based on free float policy.
❖ KSE ALL SHARE INDEX: it is made up of all listed companies.
2.4.2. Islamic indices
❖ KMI 30 Index lists the 30 most liquid companies listed at PSX that comply with Shariah.
❖ PSX-KMI All Share Index contains all listed companies on a PSX which comply with
Islamic law. Pakistan stock market and Meezan Bank Limited are responsible for
developing the index.
2.4.3. Sectorial Indices
❖ OGTI: The oil and Gas trading index measures the oil and gas sectors free-float market
capitalization at least 80 percent.
❖ BKTI: The tradable bank index is focused on the banking industry the index monitors the
banking sector free-float market capitalization of at least 80 percent.
6
2.5. Markets;
❖ Regular Market are also called ready market where shares are bought and sold on the spot
and the delivery take place within the two days. More than 70% trade are taken place in
the ready market of the Pakistan.
❖ Future Market or Derivative Market are the financial securities whose values are derived
from the underlying assets. The most common are stocks bond commodity currency etc.
❖ Odd Lot Market: in this market one can trade is less than normal lots (normal lot is 500
shares) of securities and normal lot of shares are depend upon the price of the shares.
❖ Square-Up Market If a clearing member does not offer traded shares in this market segment
then the failed transaction is squared up in the square-up market.
❖ Initial Public Offering An original IPO referred to the mechanism by which a private
corporation's shares are offered to the public in a new share. The issuing of public shares
allows a corporation to collect public investment funds.
❖ Cash Settlement Future Derivatives transactions are done in cash if the actual transfer of
the commodity is not practiced or expires. The deal is paid in cash instead. Investors were
able to bring liquidity to financial markets through cash settlements.
❖ Stock Index Future Index futures are future deals where a trader can today purchase or sell
a financial index for future payments.
❖ Bill and Bonds Market are both types of debt issued by the federal government in order to
help fund its operations are saving bonds, T-bills and T-notes. These are eligible for small
or large amounts as short or long-term investments.
❖ Negotiable Deal Market its not part of traditional market activity here negotiated
transactions are carried out outside the exchange trading system and are announced via the
exchange app and is also called off market transaction.
❖ Future Rollover Contract are Traders will carry out futures contracts to migrate from the
early month contract which expires in a month. In contrast with securities traded in
perpetuity, future contracts have expiry dates.
❖ Margin Trading System: In MTS a buyer may purchase Margin trading system appropriate
shares with a share of total value of MTS eligible securities purchased. The remaining is
funded by the brokerage house. The percentage of fund is specified by the broker not less
than the 15% of the total and it is settled in T+2 days.
7
2.6. Trading and Settlement;
The intermediator components of Pakistan Stock Exchange between buyer and security sellers are
carried out by brokerage firms and a very high volume rise in trading resulting in unnecessary
dealing of physical certificates the Central Depository Company of Pakistan (CDC) was setup in
September 1997 to manage the large volume. The CDC records and hold capital market transfer
in the form of digital book-entry. It shifts possession of asset with no physical movement. Trade
may be divided into four sections each with its own settlement procedure. The most frequent is the
T+2 settlement procedure and T+0 in special case transaction are settled through the clearing
house.
2.7. Regulatory bodies of Pakistan Stock Exchange;
The Security and Exchange Commission of Pakistan (SECP) established by law in 1997 is the
primary regulator of corporate and non-banking financial sector in Pakistan. SECP monitor the
capital market and sets the requirements. Regulatory bodies protect the investor rights.
2.8. Components of Pakistan Stock Exchange:
Central Depository Company of Pakistan (CDC) was incorporated in 1993, to execute and manage
the central Depository System the main institution managing digital settlement of trade on Pakistan
Stock Exchange.
The National Clearing Company of Pakistan limited (NCCPL) is a major institution of the Pakistan
Equity Market was founded on July 3, 2001 to facilitate investor in carrying out their clearing and
settlement operation effectively through automated, coordinated and standardized processes that
are necessary for the security and validity of the stock market.
2.9. Market 786 Private Limited:
Market 786 is one of the leading brokerage houses in Pakistan Stock. It was established in Karachi
in 2015 with 6 billion rupees on the market and in 03August, 2016 established in Lahore Johar
town branch and currently 9 branches of Market 786 are operating in the different cities of Pakistan
two in Karachi one in Islamabad, Faisalabad, Multan, Gujar khan, Hyderabad the main head office
is in Karachi. Market 786 had a strong vision to expand their business and provides financial
8
services and trying to educate the people and spread knowledge and the benefits of capital market
and services they offer.
Market 786 Private Limited is located at 339, G-3 Block, Near Khokhar Chowk, Johar Town
Lahore.
Market 786 offers a full range of product services from private funds, stock and commodity trading
good research and advisory services. The mission of the market 786 is to adding value. Fossil
Energy Private limited is the parent company of Market 786. Mr. Saleem but is the owner of the
company also and the CEO of Hascol Petroleum limited.
Market 786 is the corporate member of Pakistan Stock Exchange and Pakistan Mercantile
Exchange providing the financial services about the Stocks and Commodity which stock we must
buy on what price and when we sell the stock and commodity as well. Market 786 work as a
financial advisor they provide best research based on Maier Research group the mixture of
technical and fundamentals. Pakistan Stock Exchange based on the technical and somehow
fundamental news matter as well. Sir Noor Maier purely works on the technical and Sir Yaqoob
on Fundamentals.
Pakistan stock Exchange is at their highest point in 2017 the economic condition of the country is
very good and strong due to huge investment in infrastructure the cement sector was led by the
index with the total market capitalization of $86 Billion at 53,000 points. But in 2019 Pakistan
Economic condition is so poor and the stock exchange faces a crisis KSE-100 index with a total
market capitalization of $61 billion at 28,700 level.
Figure 2-1 Market Exposure
MARKET EXPOSURE OF MARKET786 FIGURE IN BILLION RUPEES
16
14
12
10
8
6
4
2
0
15
13
9
7
5
2015
2016
2017
9
2018
2019
2.10. Total Capitalization of Market 786:
The Market 786 is one of the best brokerage firm of Pakistan having 9 branches two in Karachi
and Lahore one in Multan, Faisalabad, Gujar khan, Hyderabad, and in the capital city of Pakistan
these branches are operating in the Pakistan and provide their services very well.
Table 2.1 Market Capitalization
Branches
Market Capitalization
Karachi
2400 Million rupees
Lahore
1600 Million rupees
Islamabad
660 Million rupees
Faisalabad
1200 Million rupees
Hyderabad
550 Million rupees
Gujar khan
520 Million rupees
Multan
700 Million rupees
From the Pie chart we can easily know about that the major portion of market capitalization of
Market 786 is hold by the two branches of Karachi and after that Lahore and so on Karachi and
Lahore are the big city of Pakistan and contributing for the wellbeing of the economy of the
Pakistan by investing their money in the Pakistan and do well for the growth of the economic
condition of the country.
Figure 2-2 Market Capitalization
Market Capitalization in Million Rupees
7%
7% 9%
31%
16%
21%
9%
Karachi
Lahore
Islamabad
Faisalabad
10
Hyderabad
Gujar Khan
Multan
2.11. Organization Structure of the Market 786:
The structure of the market 786 are defined the given diagram.
Table 2.11 Organization Structure
2.12. Brokerage Houses in Pakistan:
Market 786 is one of the top brokerage firm of the Pakistan. Market 786 have a lot of competitor
across the nation. Market 786 has the dream to adding value and providing their customer with the
best services. There are 400 hundred brokerage firm currently providing their services and in
which almost 70 brokerage houses are actively providing their services to all over the Pakistan in
2016 ranking of the brokerage firm through the security and exchange commission of Pakistan the
Market 786 is in the top ten brokerage houses of the Pakistan. JS Global, Zafar Securities, Arif
Habib Limited are the major competitors of the Market 786.
2.13. Services they Performed and Offered:
Market 786 offered a valuable financial service to their customer and the Sir Noor Maier also work
for the awareness of the people about the Pakistan stock Exchange they are providing services on
social media about the fundamentals and technical of the KSE 100 index and commodity they do
11
analysis for the common investor when they are online at the social media and provide they best
research about the stock and commodity.
Market 786 provides the in-depth research of equity and commodity and advisory services to their
clients. Market 786 is the leading position in the brokerage industry their analysis is one of the
best analysis the work on the technical and on the fundamental of the market due to this they gain
good market share in the industry. Market 786 provides the service of online trading research portal
and mobile app they trader of the Market 786 trade on the behalf of clients on recoded line.
Market 786 provides online trading and mobile app on their official websites the complete
knowledge of all the 35 sectors of Pakistan Stock Exchange like historical prices financial and
commodity technical and fundamental analysis as well.
Market 786 provides the username and password to their clients and they can directly trade in the
stock market through the app, and there is lot of information about the stock market and Pakistan
mercantile exchange. Market 786 Lahore Johar town branch have their own research house owned
by the CEO of the Johar town branched Maier Research Center, there are 20 to 25 CA and CFA
analyst they provide the best research about the stock market.
Market 786 suggest those stock based on their technical and fundamental research which are
lucrative for the customer in this way their good work behavior they promote their business. Every
day early in the morning bazaar 786 send their client an email about what’s going to be happen
today in the market what is going to buy and short. Market 786 have their rule the weapon of the
market is panic and the weapon of the coatomer is the stop loss.
Market 786 have 8 Branches in the different cities of Pakistan I do my internship at the Lahore
branch they are providing the financial services of the PSX and PMEX throughout the country.
Lahore johar town branch have very good and qualified working staff and good hierarchy system
all the team member is liable to report their work to each other they work in a very peaceful
environment. During my internship at Market 786, I work with 13 people staff of the Market 786
which include Director, Chief Executive Officer, Marketer, Researcher, Trader, and Financial
Advisor.
Table 2.4. STAFF of Market 786 Private Limited
12
Staff of Market786 Privative limited
Owner
Mr. Saleem But
Director
Mr. Yaqoob
CEO
Mr. Noor Maier
General Manager and Advisor
Mr. Shehroz Jamal Dini
Financial Advisor
Mis. Khadija Malik
Researcher
Mr. Imran
Researcher
Mr. Shammas
Trader
Mr. Waqas Ahmed
Trader and Researcher
Mr. Hasnain Shah
Trader and Researcher
Mr. Muhammad Asif
Trader
Muhammad Saddam
Marketer and Advisor
Mis. Saba Saleem
Marketer
Mis. Farah Ahmed
Marketer
Mr. Shehroz
2.14. Working Structure of Market 786 Private Limited:
The working structure of Market 786 Private limited is shows that how they generate their revenue
the earn profit in shape of commission through the trading, investor buy and sell the stock in the
market through broker and they charge their commission on each transaction. Commission of the
broker depends upon the price of the stock. In case of margin account of the investor Market 786
private limited charge extra commission from the investor.
2.15. Commission charge by the Market 786 Private limited:
Table 2 .15. Commission Slab of Market 786
Market 786
From
To
Commission
Stock Price
0
9.99
0.05
Stock Price
10
19.99
0.06
Stock Price
20
49.99
0.07
Stock Price
50
99.99
0.09
13
Stock Price
100
149.99
0.12
Stock Price
150
199.99
0.14
Stock Price
200
299.99
0.18
Stock Price
300
499.99
0.23
Stock Price
500
99999.99
0.50
Source: Self Drawn
2.16. Departmentalization:
There are certain department in market 786 private limited which are currently working together
to fulfill the objectives of the company and to achieve the short term and long-term goal of the
Market 786 private limited.
❖ Research Department
❖ Marketing Department
❖ Trading Department
❖ IT Department
❖ Account Department
2.16.1. Research Department:
In the brokerage houses the most important department is research department the research of
Market 786 is based on the technical and fundamental analysis of the stock market in which they
referred the lucrative stock to their clients. Research department also tells about the financial of
the companies what’s the company profit and loss and ratios of the company. This department also
tells the current economic condition of the country.
Maier research center owns by the Mr. Noor Maier CEO of the Lahore branch where twenty plus
CA and CFA working together and, in this house researcher do research on the technical of the
PSX, Mr. Noor is very famous and well known personality in the stock market regarding technical
analysis of stock and commodity. Mr. Noor Maier conduct a seminar in every month regarding the
technical of the equity market for awareness of the common investors and people and they also
14
came online and live question answer session regarding stock and commodity analysis of the stock
and derivative market and discuss what going to be happen in the market.
2.16.2. Marketing Department:
Marketing department of Market 786 is well trained and efficient due to this Market 786 capture
18% market share of the brokerage industry. Market 786 have strong marketing network in overall
Pakistan. Mis. Saba Saleem Marketing Manager of the Market 786 take report from all the staff
member each employee of the Market 786 must find fifty contacts from the different resources and
call them and register each businessman on their portal with details. The backbone of the brokerage
industry to generate revenue is effective marketing call and gave research about the market to the
potential customers and also give call to the businessman and tell them how the stock market is
actually working and we are be the part of this market and get benefit from this market one can
earn three times of their investment in the short period in this market.
2.16.3. Trading Department:
When an investor opens an account with the Market 786, they assign a trader through which they
can buy and sell share in the stock market. Trader call their client and give them target about stocks
and they call on the recorded line and give their order to trader and execute the order and buy and
sell the share on behalf of investor.
2.16.4. IT Department:
Today world IT department is very important in very organization the IT department of the Market
786 gave their services for the smooth running of computer system and connect all the branches
together and connect this available for all over the place for the client of the Market 786 which are
in overall Pakistan. Market 786 provides online research portal for their customer through mobile
app and online trading system investor buy and sell their stock in the stock market through mobile
app.
2.16.5. Account Department:
Account department of the Market 786 private limited is working very effectively and efficiently
record all the transactions of the branch. Account department is responsible for the daily
15
transaction after the closing of the stock market prepare a trade log about how much shares are
bought and sold today and report to the main head office.
16
Chapter 3
3.1. Portfolio Management:
Portfolio management is the practice, science and art of making investment combination decisionmaking and policies, matching investments to goals, allocating capital and risk-by-performance
balance.
A portfolio refers to a collection of investment tools such as stocks, shares, mutual funds, bonds,
cash and so on depending on the investor’s income, budget and convenient time frame.
Following are the two types of Portfolio:
❖ Market Portfolio
❖ Zero Investment Portfolio
The managing of assets involves the management of a person's money under the direction of
specialist portfolio managers. The practice of handling an investment of a person is called portfolio
management in a layman's language. It is important for people to invest wisely and safely in cold
nights.
Portfolio management provides individuals with the best investment strategy according to their
revenue, expenditure, age and risk capacity. Portfolio management minimizes investment risks and
enhances income prospects.
Portfolio managers understand the client’s financial needs and suggest the best and unique
investment policy for them with minimum risks involved.
Portfolio management enables the portfolio managers to provide customized investment
solutions to clients as per their needs and requirements.
Portfolio Manager Mange the portfolio of investor and make their portfolio according to the
investor there are three styles of investment.
❖ Conservative style; Mostly the investors are risk averse and they save their principal
amount and invest in those securities which are less risky.
17
❖ Moderate Style; those investors which have courage to take some amount of risk are lie
in moderate investment banking industry are stable sector of PSX.
❖ Aggressive Style; Emerging markets have aggressive style few of them are aggressive in
nature they take risk and earn more profit choose volatile sector.
3.2. Essential of asset allocation
In the portfolio management first step is when we enter in the market, we see the behavior of
markets, how market response against the prices and behavior against the information in this we
use the following theories and statistical tools and we check the divergence and correlation of
market.
❖ Modern Portfolio Theory (MPT) is a theory that allows risk-averse shareholders to design
portfolios to improve or increase expected returns, according to a given level of market
risk. According to the theory, an ' efficient Frontier' of optimal portfolios can be developed
that provides maximum anticipated returns to a degree of risk.
❖ The Efficient Market Hypothesis (EMH), is an investment theory that represents all data
and makes it impossible to achieve continuous generation of alpha. By theory, neither
technical nor simple analysis can consistently produce risk-adjusted excess returns or
alpha, and outsize risk-adjusted returns may result only inside data.
❖ Standard Deviation Portfolio Standard Deviation is the standard deviation of the rate of
return on an investment portfolio and is used to measure the inherent volatility of
an investment. It measures the investment's risk and helps in analyzing the stability of
returns of a portfolio.
❖ Variance Portfolio variance is a measure of a portfolio's overall risk and is the portfolio's
standard deviation squared. Portfolio variance considers the weights and variances of each
asset in a portfolio as well their covariances.
❖ Correlation, in the finance and investment industries, is a statistic that measures the degree
to which two securities move in relation to each other. Correlations are used in
advanced portfolio management, computed as the correlation coefficient, which has a
value that must fall between -1.0 and +1.0.
18
3.3. Diversification:
Diversification is a strategy of risk management that mixes a broad range of portfolio investments.
To order the limit exposure to each particular asset or risk, a diversified portfolio requires a mixture
of different types of assets and investment. The reason behind that technique is that a portfolio of
various types of property yields higher long-term returns on average and reduces the risk of any
holding or security of any person. Dividing your asset among different assets. Don’t put all your
eggs in one basket. We diversified our portfolio according to the following techniques.
3.3.1 Classification of Markets according to the Morgan Stanley Capital Index
MSCI is a global provider of equity, fixed income, hedge fund stock market indexes, and multiasset portfolio analysis tools. Every June, MSCI announces the results of its evaluation of the
equity markets for countries around the world, to determine each country’s classification as a
developed, emerging, frontier or standalone market. Each investor is familiar with low buying and
high selling. Nevertheless, those who want large capital returns will wait months or years to see
their money grow exponentially when investing in blue chip stocks like Microsoft or Apple.
MSCI announced the upgrade of Pakistan’s status to the emerging market (EM) from the frontier
market (FM) in its semi-annual review.
❖ The MSCI Emerging Markets Index stands for Morgan Stanley Capital International
(MSCI), and is an index used to measure equity market performance in global emerging
markets. It is just one index created by MSCI, which has been constructing and maintaining
them since the late 1960s. Emerging market equity ETFs offer an attractive category for
growth investors or investors seeking to expand their investment horizons with the addition
of international investments. The Equity Universe of the emerging markets usually
contains emerging market shares from 25 emerging market countries worldwide. They
report higher risks, higher returns and lower risks than the developed markets, relative to
their boundaries.
❖ MSCI Developed Markets Indexes are built using MSCI’s Global Investable Market
Index (GIMI) methodology, which is designed to consider variations reflecting conditions
across regions, market cap segments, sectors and styles. The indexes are available in
various size – large, mid, small, and micro caps or a combination of these. Developed19
market exchange-traded funds (ETFs) can help investors gain relatively cheap, broad
diversification through access to hundreds or thousands of individual holdings across the
world's most advanced economies. A highly productive, industrialized country with an
existing rule of law belongs to a developed market. In the developing markets Japan, the
United Kingdom, France, Canada and Australia are also outside of the United States.
❖ Frontier markets are categorically the riskiest markets in the world in which to invest.
They have the least number of investors and investment holdings and may not even have
a stock market on which to trade. Most frontier markets consist chiefly of stocks of
financial, telecommunications and consumer companies that can count on monthly
payments from customers. Investment holdings in this sector are typically illiquid,
nontransparent and subject to very low regulation levels as well as high transaction fees.
Frontier markets than equity markets are less developed. Slighter and less open frontier
markets. Border risks include poor liquidity and poor financial reporting.
3.3.2 Classification of Markets according to Capitalization
In order to diversify our portfolio, we categorized the portfolio according to highest to lowest
capitalization there are four markets for the diversification which are given below
The Foreign Exchange Market (also known as forex, FX or the currency market) is an overthe-counter (OTC) global marketplace that determines the exchange rate for currencies around
the world. Participants can buy, sell, exchange and speculate on currencies. Foreign exchange
markets are made up of banks, forex dealers, commercial companies, central banks, investment
management firms, hedge funds, retail forex dealers and investors.
Pakistan Treasury Bond Market has developed at a slow pace as compared to other countries.
Like other emerging markets, most of the debt financing is done through bank borrowings. A
Treasury bond (T-bond) is a government debt security that earns interest until maturity, at which
point the owner is also paid a par amount equal to the principal. Treasury bonds are part of the
larger category of government bonds, a type of bond issued by a national government with a
commitment to pay period interest payments known as coupon payments as well as the principal
upon maturity. Treasury bonds are marketable, fixed-interest government debt securities with a
maturity.
20
The Pakistan Stock Exchange is a stock exchange in Pakistan with trading floors in Karachi,
Islamabad and Lahore. PSX was reclassified as a MSCI Emerging Market in May 2017, while the
FTSE classifies PSX as a Secondary Emerging Market
Pakistan Mercantile Exchange Limited is Pakistan's first futures commodity market having its
registered Head office in Karachi, Sindh. It is the only company in Pakistan to provide a centralized
and regulated place for commodity futures trading and is regulated by Securities and Exchange
Commission of Pakistan. A commodity market is a market that trades in primary economic sector
rather than manufactured products.
Soft commodities are agricultural products such as wheat, coffee, cocoa and sugar.
Hard commodities are mined, such as gold and oil.
The four categories of trading commodities include:
At present, the Exchange offers 22 commodities with 110 contracts of different denominations
which can be clubbed into six main asset classes
❖ Energy (including crude oil, heating oil, natural gas and gasoline)
❖ Metals (including gold, silver, Palladium, platinum and copper)
❖ Livestock and Meat (including lean hogs, pork bellies, live cattle and feeder cattle)
❖ Agricultural (including corn, soybeans, wheat, rice, cocoa, coffee, Palm Oil, Cotton,
cotton and sugar)
❖ Financial Futures (KIBOR, Currencies & Indexes)
3.3.3. Major Sector of the Pakistan Stock Exchange:
We diversified our portfolio by adding the stock of the major sector stock of Pakistan Stock
Exchange with respect to the market capitalization. The major sector of the PSX are
❖ Oil and Gas
❖ Banking Sector
❖ Cement Sector
❖ Fertilizer Sector
❖ Chemical Sector
21
3.4. Assets Allocation and Return:
Asset allocation is an investment strategy designed to balance risk and rewards by assigning
portfolio capital according to individual priorities, risk tolerance and investment history. The risk
and returns for three main asset classes, fixed income, cash and equivalents, vary over time. Asset
distribution is a method to balance risk and reward by distributing the resources of a portfolio in
accordance with the interests of an investor, the sensitivity of the risk and the level of investment.
The asset relation with the market and economical projection of economics situation. We group
the assets and stock and identify how average prices dispersed for this we use the statistical tools
chose only those assets which have compatible with the investor goals one of the key factors is the
sound judgment of manager. Risk history of that asset and projected return of asset, we must make
mix either equity of fixed income domestic or international and which currency we will trade and
style of our investment conventional or alternate style. Never to forget your purchasing power on
which price or level we will go.
❖ Normal Probability
❖ Z-Score
❖ Normal Distribution
❖ Variance
❖ Semi Variance
❖ Standard Deviation
❖ Correlation
❖ Coe-ft of Determination
❖ Efficient frontier
❖ Sharp Ratio
❖ Sortino Ratio
❖ Ternor Ratio
❖ Mean variance optimization
22
3.5. Compensate the Risk:
Compensation Scheme the portfolio manager choose those stock which have optimal return and
valuable for the investor manager minimize the risk of the securities for this we use the following
concepts and model.
❖ Capital Asset Pricing Model CAPM describes the relationship between systematic risk and
expected returns on assets, especially stocks. CAPM is frequently used throughout the
financing of volatile securities pricing and the generation of asset returns in the face of
uncertainty and capital costs.
❖ Capital Market Line (CML) is a graph that represents the expected return of a portfolio of
any potential market investment to a risk-free asset in all its proportions.
❖ Security Market Line (SML) is a graph that indicates the different levels of systemic or
market risk for various marketable securities relative to the expected return of the entire
market at a certain point in time. The chart shows the capital asset pricing model (CAPM).
The risk of various marketable securities. The SML is also a graphical representation of
the capital asset price model (CAPM) known as the "characteristic column," where the
chart's x-axis is a beta hazard and the chart's y-axis is an anticipated return.
❖ Alpha is used in finance as a measure of performance, showing whether the market return
has been decreased over a period by a strategy, trader or portfolio manager. There was a
mistake. The excess return of an asset on a benchmark index return is the alpha of the
investment.
❖ The beta portfolio is a measure of the systemic overall investment portfolio risk. It refers
to the weighted average beta of all stocks in a portfolio.
3.6. Evaluation of Assets:
We evaluate the assets based on their past performance by using the technical evaluation process
and fundamental analysis of the market and economic and financial fundamental history of assets
comparative to other assets. Those asset and stock are more lucrative and beneficial for the
investor.
In the Physiological Evaluation of Asset portfolio manager check the owner profile share profile
capital flow and corporate profit. Portfolio manager makes an asset class is an investment
23
collection with similar attributes and the same set of laws and rulings. Stocks, fixed incomes
(bonds), money and assets, immovables, commodities, futures and other financial derivatives are
examples of assets classes that gives maximum profit to the investor.
Technically managers mostly use the cash ratio and if the company are in margin borrowing
manager ignore that type of stock because if the interest rates are high that stock will go down.
Portfolio manager check correlation of selected asset with inflation, deflation and exchange rates
of the country.
Whenever the investor is going to invest, they choose the liquid exchange and stocks. They have
certain goals, time frame and risk profile they choose their portfolio according to their desire and
portfolio managers help to make portfolio and manage it and rebalance their portfolio. Most
commonly use the following model;
Principal protection model used by the risk averse investor for short term investment in the fixed
bond and less volatile market and diversified the investment. And second model is principal growth
model used by the aggressive style investor to grow their portfolio by taking risk and make long
term investment had a high purchasing power and earn more profit by using bullish approach.
Pakistan Stock Exchange are lied in weal form of EMH Stock are trade at their fair value and
existing stock prices fully reflects past information stockholder get little from fundamentals.
Statistical measure are variance and correlation.
3.7. Rebalancing of Portfolio:
Re-balancing is the weighting function of the asset portfolio. Rebalancing means the regular
purchase or sale of assets in a portfolio in order to maintain the original or desired allocation or
risk level of assets.
We adjust our holding it is very important there are concentrated portion and liquid portion,
personal holding and alternate holding in our portfolio. There should be small portion of personal
holding and major portion should be the liquid stock and conventional.
Among most investors, twice a year is enough to re-balance to ensure that their capital allocation
is not worthless. Rebalancing allows you to benefit from investments that have taken advantage of
and bring money into things that are valuable but have not grown. Portfolio manager redeem to
24
rebalance the portfolio by keeping in view the financial event occurs like quarterly result, dividend,
right share, merger, acquisition, IPO and refinancing.
3.8. Marketing Call
Working with marketing staff I call to Mr. Banaras and convince him to do invest in stock market
tell him how Market 786 Private limited is working charge about commission and providing
financial services it’s very difficult to bring the business searching for potential clients.
3.9. Technical Analysis
Technical analysis is based upon theories, averages and technical indicators mostly effectively and
efficiently.
Theories which are commonly used in technical analysis are
❖ Dow theory consist of six postulates which provide the basis of technical analysis.
❖ Efficient market theory consists of the efficient frontier.
❖ Elliot wave theory consists of impulsive and corrective waves which in combination from
the stable and moving cycle of markets. Core idea behind this theory emerges from
Fibonacci number and Fibonacci ratio.
3.9.1. Moving Averages
Mostly used averages are exponential moving average, simple moving average and weighted
averages with different parameter suitable to expected return and portfolio size.
3.9.2. Technical indicator
Technical indicator consists of the following three types
1. Momentum indicators most commonly useable are Moving Average Convergence
Divergence (MACD), Relative Strength Index (RSI) and Stochastic.
2. Volatility indicators commonly used effectively interpretable volatility indicator is
Bollinger Band.
3. Volume indicators are volumes and On-balance-volume (OBV) are used as volume
indicator.
25
3.10. Oil and Gas Marketing companies of Pakistan:
I have done research on the oil and gas marketing companies of Pakistan, in this sector I found
total sales and consumption of oil and gas. Eight oil and gas marketing companies had Rs 31,9
billion in revenue after tax. Pakistan Share market's paid-up investment was 14.6 billion and Rs
249 Billion market capitalization 7.8 billion of income after tax.
The sales of oil markets increased by 22% in the diesel sector and by 6% in the furnace oil industry,
mainly in July 2019. Oil consumption in 2016-2017 saw a growth rate of 9.7% to 26.0% over the
course of the fiscal year, compared with 23.7 million tons. Oil Companies Advisory Committee
(OCAC) indicates that in March 2019 Pakistan's sales of petroleum products declined to 1038
million tons, dragged down 50 percent in Furnace Oil (FO), and fell 21 percent in High Speed
Diesel (HSD). Preliminary sales figures for Mar'19 is proof of incremental growth (up 2% MM),
with MS (+ 5%) and FO (+ 8%) at 1,46 million tons.
Figure 3-10 Consumption
Consumption
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2014-15
2015-16
MS
2016-17
Kerosene
HSD
2017-18
JP-1
2018-19 (JULMAY)
FO
Source: Self Drawn
3.10.1. MS Consumption province wise:
Expansion in petrol demand has decreased substantially. In contrast with 4,23 million tons last
year it rose just 3 percent, to 4,34 million tones.
26
Figure 3-10.1 Consumption of Petrol Province wise
PUNJAB
SINDH
KPK
BALOCHISTAN
GILGIT
BALTISTAN
AZAD
KASHMIR
FATA
Source: Self Drawn
3.10.2. HSD Consumption:
Sales of high-speed diesel (HSD) 21% lower in HSD than at 7MFY19 reported a decline of 2.3%
vs. seven percent growth of 7MFY18. HSD stayed on the low side as economic slowdowns were
shown.
Figure. 3.10.2. HSD
2014-15
2015-16
2016-17
2017-18
2018-19 (JUL ~ MAY)
27
3.10.3. Consumption of Gas
The average utilization of natural gas during July 2018-February was approximately 3,865 million
cubic feet (mmcfd) a day, including RLNG amount of 785 mmcfd.
On aggregate, the gas distributors have supplied / connected over the past five years more than 0.3
million customers annually. With energy usage of 1411 mmcfd, household use of 889 mmcfd,
industrial 89 mmcfd, CNG 183 mmcfd, fertilizer 645 mmcfd and general industries used 648
mmcfd in July-February 2019, the power sector was at the boundary
In the 14-month period April 2018 to May 2019 throughout the country, consumption of Liquefied
Petroleum Gas (LP Gas) amounted to about 40,921 metric ton (MT).
Figure 3.10.3. Consumption of Gas
Domestic, commercial and industrial consumers 2018 & 2019
MT
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
2019
Apr
May
3,174
3,077
2,661
2,680
2,684
3,027
3,264
2,630
3,272
4,357
2,961
1,715
2,971
2,448
Source: Self Drawn
3.10.4. Sui Northern Gas Pipeline Limited:
Sui Northern Gas Pipelines Limited (SNGPL) is the largest integrated gas company supplying
more than 6.5 million consumers in North Central Pakistan through a vast network in Punjab,
Khyber Pakhtunkhwa and Azad Jammu & Kashmir.
28
Figure. 3.10.4. Sales of SNGPL
SNGPL
503,782,390
346,308,284
250,646,588
212,520,573
NET SALES
1
220,760,878
205,662,047
2018
2017
2016
2015
2014
2013
2
3
4
5
6
7
3.10.5. Usage of Gas:
Even With a gas shortage, 428,305 additional gas transmission connections containing 425,404
domestic, 2,770 commercial, and 131 industries were provided during this time by Sui Northern
Gas Pipeline Limited (SNGLP) and Sui Southern Gas Company Limited (SSGCL).
Figure.3.10.5. Consumer of Gas
No of Consumers
4%
3%
4%
5% 3% 4%
11%
7%
8%
9%
4%
18%
16%
4%
Abbottabad
Bahawalpur
Faisalabad
Gujranwala
Sialkot
Gujrat
Islamabad & Rawalpindi
Lahore (East and West)
Multan
Peshawar
Mardan
Sahiwal
Sargodha
Sheikupura
3.10.6. Sui Sothern Gas Corporation Limited:
A huge-scale public corporation and a Pakistani, Sui Southern Gas Company (SSGC) is
responsible for its regional activities, which span more than 1200 localities in Sind and
Baluchistan. In 2015-2016, approx. 384.979 million cubic feet (MMCF) of gas was supplied in
29
those areas by a supply system of over 44,761 km to approximately 2,7 million manufacturing,
industrial and household customers.
Figure. 3.10.6. Sales of SSGC
SSGC Net Sales
162,583
156,673
153,283
151,368
138,616
2017
1
2016
2
130,904
2015
3
2014
4
2013
5
2012
6
7
3.10.7. Pakistan State Oil
In March 2019, the Pakistan State Oil (PSO) recovered to a 39 and 41 percent respectively, by
5ppts and 3,5ppts MoM in sales of petrol and Diesel its total sales amount, reported at 751,000
tons on a monthly basis.
Figure. 3.10.7. Sales of PSO
PSO
1,187,639
1,056,901
913,094
878,147
677,940
Net Sales
2014
1
2
2015
2016
3
4
30
2017
5
2018
6
3.10.8. Attock Petroleum Limited
In July revenue at 153 064 tons, Attock Petroleum Limited (APL), which saw a fall in the sales of
MS and HSD but increased FO sales.
3.10.9. Shell Petroleum Limited
For Nov 18 SHEL fell to 58kt and 43kt respectively, for MOGAS and HSD.
3.10.10. Hascol Petroleum Limited
In Oil Marketing, HASCOL is a pioneer, with a total return of 64 percent from the closing date of
our PKR314/SH Jun'19 TP. During a month HASCOL's market share also fell to 9%/11% for
MOGAS / HSD from 12%/13% for SPLY though HASCOL's 8% market share for FO was
retained.
Figure. 3.10.10. Net Sales of Hascol Petroleum
Hascol Petroleum Ltd
Revenue (net) Rs/mn
233,607
173,739
76,774
84,856
49,820
2018
2017
2016
Source: Self Drawn
31
2015
2014
Chapter 4
Finding and Recommendation
4.1. Findings
During internship tenure here observations and conclusions by working within the organization.
There are also some strengths and weaknesses. The results of the work on the project provided by
Market786 were summarized during the internship duration and work in the organization as fallow.
4.2. Strengths
❖ Mr. Saleem Butt owns Market786, other businesses like Sons and Buts, Hascol Petroleum
and Fossil fuel Energy.
❖ Market 786 Private limited is the corporate member of Pakistan stock Exchange, Pakistan
Mercantile Exchange and the member of MUFAP, trading in both commodities and Shares.
❖ Company charge KIBOR+4% and other brokerage house charge KIBOR+16%.
❖ Market 786 Private limited are spread all over the country.
❖ Company have a 35 years’ experience of Pakistan stock Exchange.
❖ Market 786 is the leading brokerage house and have a lot of shares.
❖ Market 786 private limited have link with different companies which provides them
contacts of businessmen.
❖ They have a prime location due to which easy for the clients to set an inhouse meeting.
❖ They are providing a financial service in across the Pakistan and arranging out houses with
their clients and have flexible working hour.
❖ Market 786 Providing a different research portal to their customer.
❖ They competitors other brokers focuses on a single pattern, which can be fundamental or
technical, based its research on both fundamental and technical analysis as well.
❖ Mr. Noor Maier have their own Maier’s research center they are providing the world best
research about Pakistan stock Exchange and Pakistan Mercantile Exchange.
❖ They are offering a unique service through which by using smart phone one can buy or sell
the stock directly.
❖ The fan and followers of Noor Maier are in very large in number they guide their customer
very well and provides a timely and efficient information.
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❖ Market 786 Johar town branch regional general manager has good relationship with many
businessmen due to which they gain major share of market.
❖ This brokerage house provides 75% margin to their clients.
❖ Market 786 have a weapon of stop loss when market create panic.
4.3. Weakness
❖ Pakistan's Share market in 2017, a total value of 86.5 billion is estimated to have fallen by
almost 41 percent due to the economic crisis in 2019, which led to Market786 dipping by
48 per cent overall.
❖ Economic condition of Pakistan is not as good due to this business in stock market is slow
down.
❖ People of Pakistan are not aware about the trading in stock market due to the illiteracy
according to the research of 2018 there are 0.11% people are trading is Stock Market.
❖ Due to huge loss in Stock Exchange KSE100 Index loses 2000 points in three months due
to this people are not trust on the brokers and they don’t invest their money in stock
Exchange.
❖ There is very tough competition between the brokerage houses of Pakistan.
❖ Insufficient training program for the staff which result the technical deficiencies in staff.
❖ There is a gap between top level and middle level management.
❖ Market 786 Private limited does not hire the expert technical analyst and, they choose
simple bachelors for marketing instead of professional business graduate.
❖ Mr. Noor Maier does not give authority to general manager to take report from the sub
ordinates.
❖ Marketing staff of the Johar town branch are accountable to give report on daily basis to
make fifty calls and the staff doesn’t learn something new they are just stuck on their target
and the business doesn’t prosper due to focus on counting calls not delivering value through
effective marketing.
4.4 Recommendations
During the internship, several shortcomings are found improvement areas are identified.
Certain suggestions can help to improve the efficiency of the organization, particularly in the
Lahore branch. The brokerage has however done well since the beginning, based on financial
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results, but some changes have been made. Since its foundation, the company's performance
has decreased by nearly 48%, although due to financial crises.
The suggestion to improve the organization's activity and efficiency.
❖ Now, in various business schools, there are many qualified professionals. The Market
786 Private limited should work before other organizations to recruit skilled and skilled
people from the current market.
❖ There should be regular training sessions to develop the skills of staff and align them
with existing market operating systems.
❖ Staff members should be empowered to succeed and operate excellently to inspire and
to be committed to their organization.
❖ Mobile trading requires more attention in order to provide customers with information.
This requires proper marketing.
❖ Staff must stop cross-tuning, as this contributes to confrontation.
❖ Good relationships with middle supervision should be built by chief administration.
❖ The company, who already invests in the stock market, was found to knockout every
marketer when working on the marketing. As a result of this, advertisers should be able
to access and inform the new market, according to my advice.
❖ The organization will set up its Department for Marketing Research in the new
department, which will seek numbers of contacts and connect with customer in
Pakistan.
❖ The website of the company has very useful data but can be used only by its own
customer. The business ought to open the door for everyone.
❖ The company pays the staff fixed salary either their research is effective or not. The
company must rank with the researcher and offer the research reward.
❖ It has 11 branches in 9 states, but most of the townships have no branch like Abbottabad
and Peshawar. There should be a corporation opening new branches.
❖ KPK and South Punjab are the rich city in which most people don't know about Stock
Market should teach people through workshops. These fields can be easily seized by
company and their market capitalization should be stepped up.
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References
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