Working Methodology of Capital Markets

In this trading project we sort companies in different sectors which we considered to be valuable as per market perspective. The different sectors we acquired in our trading are Oil & Gas , Chemicals , construction & materials , general industrials , pharmaceuticals , telecommunication, power sector and banks. Companies in these sectors are generally considered to be growing concerns since these segments are related to every day needs and utilities. The share market for the said companies depicts ebb and flow behavior mostly due to different aspects like competitive element, market risk & trends, people perspectives and numerous other socio- economic factors. We invested Rs.100 million that were assigned hypothetically in 16 different companies out of which 20 % our budget was invested in different commodities. A strategy that works for one person may not necessarily work for another person and similar it also differs from sector to sector. In all the sectors we invested during last 6 weeks there is an overall mix trends in the market. Like others our focused strategy is to attain maximum under the given circumstances. Prices of Oil & Gas , Chemicals and Power sectors shows a stable trend and during first week of our trading it was revealed that investing these sectors is more favorable for a risk averse person who could attain average return by investing in these sectors. In the telecom sector we invest in the PTCL regarding it as the sole corporation specifically in fixed line communications. By investing in PTCL we didn’t see any significant price margins but we are able to attain minimal profits. As (PTCL) is the largest telecommunication company in Pakistan which provides basic telephony cellular mobile and internet/data services and also a growing concern as because of higher profits despite declining sales, company’s return on capital has increased by 20 basis points in FY10 to 7.4 percent. Similarly, return in equity has increased over