How to Invest in Pakistan stock Exchange

How to invest in Pakistan stock Exchange

The term Stock market is enough to grab the attention of anyone in the world. Stock market investment has own charm in any country of the world. Investing in stock market is a way to save the money for the future plans but not without serious risks. Pakistan stock Exchange (PSX) is a stock market with trading floors in Lahore, Karachi, and Islamabad.In this article, you will learn how to ‘how to invest in Pakistan stock Exchange’…

Despite terror threat, Pakistan stock market is a cynosure of foreign investor eyes and always on the radar of investor who hunting to pouring money for long-term growth and benefits. The investors can not ignore the Pakistan equity market because of secular earnings growth trajectory, corporate profitability and low penetration of several consumer products. International investors being attracted toward Pakistan stock exchange against some brilliant concern like record debt to GDP ratio, the constant stability of Pakistan rupees against dollars, high deficit. Another thing which attracts a lot of people was overnight success stories against the squalid stories of stock market crashes.

How to invest in Pakistan Stock Exchange

Pakistan Stock Exchange

Pakistan Stock Exchange become hell or heaven for someone depending on the methodical and cautious approach. Pakistan Stock Exchange (formerly known Karachi Stock Exchange ) is a leading jaguar in the regional markets. Because Pakistan Stock Exchange is rising continuously towards the advancement and not a place for investment only but also provides a good place for trading. One must understand some terms when he has the plan to invest in stock market.

Read: How to Invest in Mutual Funds in Pakistan ?

What is Share ?

For investing in stock exchange one must know what is share. A simple form of a share is the owner of a single unit in a company.

What is Stock Exchange ?

Organizations put their shares for sale in the market and give an opportunity to people to buy these shares and invest in their organizations for profit.It is known as Stock Exchange.

Process for Applying in Pakistan Stock Exchange

  • First, you will open an account for purchasing shares. So open an account on CDC (Central Depository Company) instead of on stock exchange.

  • For an account, you will pay annually 500 rupees.

  • Now you will contact stock exchange agent or broker and pay some deposit amount for purchasing shares.

  • After purchasing shares the payment will be paid within 15 days.

  • You can purchase new shares of a company by initial public offering. If the shares of these companies are in the market than you can apply and purchase these shares.

  • For apply you will go on stock exchange website and fill the application form and submit to CDC officer with required documents.They give you an application number.

  • After 2 weeks shares will transfer if you succeed.

List of Stock Exchange Broker in Pakistan

  • Askari Securities Limited

  • WE Financial Services Limited

  • Fawad Yusuf Securities Limited

  • Irfan Mazhar Securities Limited

  • Rafi Securities Limited

  • Global Securities Pakistan Limited

  • IGI Finex Securities Limited

  • KSAB Securities Limited

  • Safe Securities Limited

  • Ali Husain Rajab Ali Limited

  • Security Investment Bank Limited

  • Zafar Moti Capital Securities Limited

  • BMA Capital Management Limited

  • Asian Securities Limited

  • Zafar Securities Limited

  • Javed Iqbal Securities Limited

  • Abbasi & Company (pvt) Limited

Companies for Investing Money in Pakistan Stock Exchange

For investing you should plan first in which company you want to invest.We make a list of different industries in which you can invest your wealth.

  • Automobile Parts & Accessories

  • Cement

  • Cable and Electrical Goods

  • Commercial Banks

  • Close-End Mutual funds

  • Fertilizers

  • Food & Personal care products

  • Synthetic & Rayon

  • Insurance companies

  • Tobacco

  • Glass& ceramics

  • Refinery

  • Vanaspati &Allied Industries

  • Leather & Tanneries

  • Leasing Companies

  • Sugar & Allied Industries

  • INV.Banks

  • Oil & Gas Exploration Companies

  • Real Estate Investment Trust

  • Textile Composite

  • Transport

  • Pharmaceutical Companies

  • Power Generation & Distribution

  • Paper & Board

Factors Affecting the Pakistan Stock Exchange

Pakistan Stock Exchange mesmerizing the people what they saw on the screen. But the reality is against this charm and dealing with shares in the stock market is a skillful and tactical fight which do not need any shortcut. If a person wants to be successful in the Pakistan Stock Exchange he should ponder over the different things

  • The psyche of the investor /trader because trading affected by the way of thinking and huge success depends on the Psychological condition of the person. One golden formula of success in investing depends on the three components from where you can easily understand the importance of Psychology of investor.

  • Money Management skills – 30%

  • Trading Psychology- 60%

  • Trading expertise and Strategies – 10%

  • Choice of the company where shares and profit will grow in future and gives benefit to the shareholder.

  • Develop a sense what a share actually is and how it earns a profit?

How we earn profit in the stock market in Pakistan?

You can earn profit in Pakistan stock exchange by following ways

  • Enhanced your share price in the company

In this case after investing the money in the company and wait until company hit some big dealer and stock prices go high. Now you sell your shares at the high price in the stock exchange than you had purchased these shares and earns the profit. But you should aware this reality sometimes you losing money if the stock prices dropped.

  • Enhanced shares in the company profits

In this way, you earn a profit by receiving dividends from the company.What are dividends? Dividends are a part of company profits that pays out to its stockholders. However, it is not obligatory to the company to pay profit to their stockholders. But sometimes company pay it to shareholders as a reward for putting trust in their company.

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