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Questions and Answers
Which stock market index indicates the performance of 500 large companies listed at the US stock exchange?
Which stock market index indicates the performance of 500 large companies listed at the US stock exchange?
What was the percentage increase of the KSE-100 from June 2023 to March 2024?
What was the percentage increase of the KSE-100 from June 2023 to March 2024?
61.6
The _____ index tracks all stocks traded at the Shanghai Stock Exchange.
The _____ index tracks all stocks traded at the Shanghai Stock Exchange.
SSE Composite
What is the benchmark index for the Pakistan Stock Exchange?
What is the benchmark index for the Pakistan Stock Exchange?
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The Hang Seng Index experienced a rise between June 2023 and March 2024.
The Hang Seng Index experienced a rise between June 2023 and March 2024.
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What percentage growth did the KSE-100 index register during the July-March period?
What percentage growth did the KSE-100 index register during the July-March period?
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Which country had a stock market index represented by the VN30?
Which country had a stock market index represented by the VN30?
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What does the equity market primarily involve?
What does the equity market primarily involve?
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How many debt securities were listed during July-March FY2024?
How many debt securities were listed during July-March FY2024?
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The Pakistan Stock Exchange saw a decrease in its total market capitalization from July 2023 to March 2024.
The Pakistan Stock Exchange saw a decrease in its total market capitalization from July 2023 to March 2024.
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Privately placed debt securities amounting to Rs 1,175.3 billion were reported during July-March FY2024.
Privately placed debt securities amounting to Rs 1,175.3 billion were reported during July-March FY2024.
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How many listed companies were there on the Pakistan Stock Exchange as of March 31, 2024?
How many listed companies were there on the Pakistan Stock Exchange as of March 31, 2024?
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What was the amount sought by the government in its first-ever auction of government debt securities?
What was the amount sought by the government in its first-ever auction of government debt securities?
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Which sector dominated the overall market capitalization of the Pakistan Stock Exchange?
Which sector dominated the overall market capitalization of the Pakistan Stock Exchange?
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Investors earn money from stocks through _____ and dividends.
Investors earn money from stocks through _____ and dividends.
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What was the total funds mobilized in the Pakistan Stock Exchange between July 2023 and March 2024?
What was the total funds mobilized in the Pakistan Stock Exchange between July 2023 and March 2024?
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The performance of major world stock markets during the first nine months of FY2024 showed a positive trend for all markets.
The performance of major world stock markets during the first nine months of FY2024 showed a positive trend for all markets.
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What is the profit rate of the Savings Account w.e.f. 24-03-2024?
What is the profit rate of the Savings Account w.e.f. 24-03-2024?
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Which scheme has a tax-exempt status?
Which scheme has a tax-exempt status?
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What is the maturity period of Defence Savings Certificates?
What is the maturity period of Defence Savings Certificates?
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The profit rate on Premium Prize Bonds (Registered) was _____ effective from 24-03-2024.
The profit rate on Premium Prize Bonds (Registered) was _____ effective from 24-03-2024.
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How many different commodity futures contracts were traded on PMEX during July-March FY2024?
How many different commodity futures contracts were traded on PMEX during July-March FY2024?
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What is the total number of pension funds as of December 31, 2023?
What is the total number of pension funds as of December 31, 2023?
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NBFCs hold a banking license.
NBFCs hold a banking license.
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Match the following schemes with their respective tax status:
Match the following schemes with their respective tax status:
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What were the Defence Savings Certificates' net investments in 2016-17?
What were the Defence Savings Certificates' net investments in 2016-17?
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What was the coupon rate for the 5-year Pakistan Investment Bonds?
What was the coupon rate for the 5-year Pakistan Investment Bonds?
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In which year was the special savings certificates first issued in 10-years maturity?
In which year was the special savings certificates first issued in 10-years maturity?
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Which of the following schemes had negative investment in 2020-21? (Select all that apply)
Which of the following schemes had negative investment in 2020-21? (Select all that apply)
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The coupon rate for the 1-year Fixed Rental Rate Sukuk is 22.49%.
The coupon rate for the 1-year Fixed Rental Rate Sukuk is 22.49%.
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The Grand Total of national savings schemes for 2022-23 is _____ Rs million.
The Grand Total of national savings schemes for 2022-23 is _____ Rs million.
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The interest on Pakistan Investment Bonds is tax-free.
The interest on Pakistan Investment Bonds is tax-free.
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Match the following maturity periods with their respective coupon rates for fixed-rate PIBs:
Match the following maturity periods with their respective coupon rates for fixed-rate PIBs:
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How many new Shariah advisors registered with SECP under the Shariah Governance Regulations, 2023?
How many new Shariah advisors registered with SECP under the Shariah Governance Regulations, 2023?
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What percentage of the total pension funds industry do Islamic Pension Funds constitute?
What percentage of the total pension funds industry do Islamic Pension Funds constitute?
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How many Modaraba companies were registered as of December 31, 2023?
How many Modaraba companies were registered as of December 31, 2023?
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What significant change occurred with the definition of digital nano lending?
What significant change occurred with the definition of digital nano lending?
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SECP has issued the first international conference on Islamic capital markets in 2024.
SECP has issued the first international conference on Islamic capital markets in 2024.
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What is the anticipated date of implementation for IFRS 17 in Pakistan?
What is the anticipated date of implementation for IFRS 17 in Pakistan?
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The total assets of the Modaraba sector as of December 31, 2023, stood at Rs ______.
The total assets of the Modaraba sector as of December 31, 2023, stood at Rs ______.
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Match the following insurance sectors with their type:
Match the following insurance sectors with their type:
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The new e-Filing portal, eZfile, improves the process of company registration.
The new e-Filing portal, eZfile, improves the process of company registration.
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Study Notes
Pakistan's Capital Markets Overview
- Performance of Pakistan's equity market represented by the KSE-100 index showed notable growth in fiscal year 2024, driven by positive market sentiment and economic stability.
- Key financial instruments traded included term finance certificates, Sukuk, and commercial papers in the debt market, facilitating corporate financing.
- Introduction of government debt securities through capital market infrastructure aimed to lower borrowing costs and broaden the investor base.
- The Securities and Exchange Commission of Pakistan (SECP) initiated reforms and activities to enhance capital markets.
Equity Market Performance
- The Pakistan Stock Exchange (PSX) benchmark KSE-100 index grew significantly by 61.6%, the highest since 2003, increasing from 41,453 to 67,005 during the fiscal year.
- The index reached its peak of 67,142 on March 28, 2024, attributed to successful IMF program reviews and enhanced investor confidence.
- Average daily trading volume surged to 602 million shares in July-March FY2024 compared to 204 million in the same period last year.
- By March 31, 2024, there were 524 listed companies on the PSX, with market capitalization reaching Rs 9,448 billion.
Key Market Capitalization Figures
- Total funds mobilized in the PSX between July 2023 and March 2024 amounted to Rs 18,911 million, down from Rs 35,440 million year-over-year.
- Market capitalization increased by 48.3%, closing at Rs 9,448 billion from Rs 6,369 billion on June 30, 2023.
- Sector-wise market capitalization showed notable growth, highlighting commercial banks, oil & gas exploration companies, food and personal care products, fertilizer, and cement as key sectors.
Sector-wise Market Capitalization
- Commercial Banks: Increased from Rs 1,011,875.8 million to Rs 1,787,203.4 million (76.6% growth).
- Oil & Gas Exploration: Grown from Rs 812,491.7 million to Rs 1,273,124.7 million (56.7% growth).
- Food & Personal Care Products: Increased from Rs 690,461.1 million to Rs 809,795.3 million (17.3% growth).
- Fertilizer: Grew from Rs 473,148.7 million to Rs 684,306.8 million (44.6% growth).
- Cement: Rose from Rs 444,827.5 million to Rs 604,365.4 million (35.9% growth).
Global Equity Market Trends
- Major global stock markets generally reported positive trends, except for the Shanghai Stock Exchange, impacted by the property sector crisis in China.
- KSE-100 index showed significant growth (62%) compared to global indices during the first nine months of FY2024, reflecting local market resilience amidst global fluctuations.### Confidence in Pakistan Stock Exchange
- Positive market sentiments and investor trust in the Pakistan Stock Exchange (PSX) linked to the successful IMF Stand-by Arrangement (SBA).
- Successful implementation of the IMF program encouraged better market performance.
KSE-100 Index Performance
- KSE-100 Index noted a significant increase of 61.6% from June 2023 to March 2024.
- Compared to other Asian markets, KSE-100 was the most attractive, exceeding the performance of indices such as VN30 (15.5%), BSE Sensex 30 (13.8%), and others.
Major Asian Stock Indices Overview (June 2023 - March 2024)
- Indices performance varies significantly across Asia:
- KSE-100: 67,005.1 on 31.03.2024 (up from 41,452.7).
- MSCI Emerging Markets: Increased from 989.5 to 1,045.1.
- Shanghai Composite: Decreased from 3,202.1 to 3,041.3.
- BSE Sensex 30: Rose from 64,718.6 to 73,651.4.
- Other indices experienced variations, with Hang Seng showing a decline.
Debt Markets Insights
- Debt market plays a critical role in financing through various instruments (bonds, treasury bills, Sukuks).
- Publicly issued debt securities in July-March FY2024 totaled ten, with a cumulative value of Rs 1,282.9 billion.
- Significant government debt instruments included corporate Sukuks and Ijara Sukuks.
National Savings Schemes
- Central Directorate of National Savings (CDNS) facilitates savings mobilization and government securities offering.
- CDNS portfolio stands at Rs 3.2 trillion, making up 14% of total banking deposits, catering to around 3 million customers.
- New products including SARWA Islamic Savings Schemes launched to ensure financial inclusion.
Profit Rates on National Savings Scheme Products
- Defence Savings Certificates: Reduced from 14.87% to 13.36% over a 10-year term.
- Special Savings Certificates: Declined from 17.13% to 15.93%.
- Pensioners' Benefit Accounts and Bahbood Savings Certificates: Offered tax-exempt rates, ultimately reduced to 15.60%.
- Introduction of Shariah-compliant savings schemes (SARWA) with competitive profit rates.
Auction of Government Debt Securities
- First-ever auction of government debt securities conducted in December 2023, featuring Shariah-compliant Ijara Sukuk.
- Auction oversubscribed 16 times with a raised amount of Rs 30.2 billion at a cut-off yield of 19.5199%.
- Increased frequency of government debt auctions from monthly to fortnightly, enhancing visibility and broadening the investor base.### National Savings Schemes
- Net investment in Defence Savings Certificates showed fluctuations, with a notable decline in 2022-23 of Rs 38,530.1 million followed by a decrease of Rs 24,658.1 million in 2023-24.
- Special Savings Certificates (Registered) experienced significant losses in 2021-22 and 2022-23, with reductions totaling Rs 79,014.8 million and Rs 12,701.4 million, respectively.
- Regular Income Certificates peaked in 2023-24 with net investment of Rs 187,710.7 million, contrasting with a loss in previous years.
- Bahbood Savings Certificates bounced back in 2023-24, recovering to Rs 36,580.0 million.
- The Grand Total for national savings displayed a net loss of Rs 104,993.0 million as of 2023-24, significantly impacted by fluctuations in various schemes.
Pakistan Mercantile Exchange (PMEX)
- PMEX is the only regulatory platform for commodity futures trading in Pakistan, offering contracts on commodities like gold, silver, crude oil, and local agricultural products.
- During July-March FY2024, 3.39 million lots valued at Rs 4.08 trillion were traded on PMEX, a 14.5% increase from the previous year.
Capital Market Reforms
- Introduction of a Centralized Gateway Portal (CGP) enhances customer onboarding in capital markets by streamlining KYC processes across different asset classes.
- Amendments in PSX regulations aim to facilitate foreign investment and uphold investor rights by improving transparency in disciplinary actions.
- Regulatory approval times for IPO applications have been reduced, allowing companies to complete fundraising in 29 working days.
- A new category of futures broker focused solely on agriculture aims to boost investment in the agricultural sector, particularly from rural investors.
Non-Banking Finance Companies (NBFCs)
- NBFCs serve similar functions to banks but operate without banking licenses, including mutual funds and leasing companies.
- As of March 31, 2023, 13 NBFCs licensed to manage private equity and venture capital funds had launched 7 funds, totaling assets of Rs 32.3 billion.
Mutual Fund Industry
- Total mutual fund assets reached Rs 2,231.8 billion, with money market funds dominating at 49% market share, followed by income funds at 31%.
Voluntary Pension Schemes
- As of December 31, 2023, the voluntary pension industry managed assets worth Rs 61 billion, featuring 24 pension funds and 14 managers.
Real Estate Investment Trusts (REITs)
- REITs allow investors to gain returns from real estate through shares, facilitating investment in income-producing properties.
- As of March 31, 2024, 17 REIT schemes were registered, with total assets valued at Rs 168.4 billion.
Islamic Finance Sector
- Islamic financial services include Shariah-compliant businesses and instruments, constituting 67.7% of the total pension funds in Pakistan.
- There were 31 Modaraba companies managing Rs 56.1 billion as of December 31, 2023, contributing to the Sukuk and Islamic pension market.
Reforms and Regulatory Activities
- Amendments to the Voluntary Pension System (VPS) and new guidelines for digital nano lending aim to enhance financial security and consumer protection in lending practices.
- SECP initiated a protocol for responsible marketing and ethical practices in digital lending to foster transparency among NBFCs.
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Description
Test your knowledge on major stock market indices and their performances. This quiz covers important metrics such as the KSE-100, Hang Seng Index, and benchmarks for various exchanges. See how well you understand these financial indicators and their percentage changes over specified periods.
