Questions and Answers
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?
61.6
The _____ index tracks all stocks traded at the Shanghai Stock Exchange.
SSE Composite
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.
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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?
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What does the equity market primarily involve?
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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.
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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?
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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?
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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?
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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.
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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?
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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.
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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?
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NBFCs hold a banking license.
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Match the following schemes with their respective tax status:
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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?
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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)
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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.
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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:
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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?
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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?
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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?
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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:
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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.