This, instead of being a regular topic is more of an investment advice for Pakistan resident guppies.
The stock markets are really picking up and with GOP’s privatization program really gearing up…lots of investment opportunities are coming up.
Recently a few equity IPOs have been done which have met with overwhelming success (and for justifiable reasons too). Cases in point are OGDCL (Oil and Gas Development Co. Ltd.) whose IPO amount was Rs. 7.0 billion and was heavily oversubscribed. In addition, Worldcall Broadband was also recently listed and was oversubscribed to the tune of 4 times. These are good times for small players in the equity market to make some savvy investments-both from a long-term holding perspective as well as to make a quick buck in terms of capital gains.
OGDCL was IPOed at 32/share…i sold it off at 55 currently trading at 53…close to its fair value as per recent broker reports.
Lots of attractive IPOs are lined up. To top the list, some are SSGC (Sui Southern Gas Co.), PSO, KAPCO and a few others.
These are good investments. Prospectuses are published in leading dailies of Pakistan to help you earn insight into each investment opportunity.
Buy them :k: I will keep you posted on the IPO dates.
Disclaimer 1: This is no way should be construed as an attempt to hard-sell the issues we in any event are not the financial advisors to the upcoming issues so there is no conflict of interest :~)
Disclaimer 2: Investors are advised in their own interest to read the contents of the Prospectus carefully and especially the risk factors as presented in the prospectus before making any investment decision.
What is the procedure for overseas investors?. How do we go about buying shares in the open market?. Do I have to open up an account with a financial institution in Pak?. What are the commissioning fees?. Do we have to pay TAX on profits?. Is the tax withheld or payable at the end of tax year?.
Oho…piaray funguy… :~) these are perfectly valiq questions but they are beyond the scope of this thread. I would encourage you to open a separate thread on these very issues and any related issues :~)
abhi to main yahan investment guru ban kar betha hoon na
Investors should also only invest money they are willing to forgo/lose and not their childs educational funds :)
Yes I also want to know how you can buy stocks or mutual funds in the KSE. Theres got to be a way - I think generally banks offer "equvalent" stocks in US$ in the US but I am not sure how to go about buying into these things.
khanzaday, I am interested in finding out about Real Estate Investment Trusts in Pakistan. are there any, what type of investments they are making etc. any info would be appreciated
funguy and hmcq: Although i asked fg to open a new thread but he is kamchor kher yahin answer karne ki koshish karta hoon.
For fresh equity IPOs: For overseas investors, the equity issues can only be entered in/applied for, if there are Bankers to the Issue present in your country. For e.g., the recent OGDCL issue was offered not only in pakistan, but in the middle east and some parts of europe as well. As far as investing in issues where there are no Bankers to the Issue in your country, you can do two things:
Ask your resident pakistani friend to do it on your behalf (i know it is a no-brainer but i needed to put this in)
subscibe to an online trading service for Karachi Stock Exchange-traded stocks. At present there is only one company (and obviously the biggest so far) who is involved in this-akdtrade.com but others are coming up fast to fill this need.
You can easily open a CDC account (Central Depository Company of Pakistan) with any resident brokers like Khadim Ali Shah Bukhari (KASB) or Jahangir Siddiqi & Co. Ltd which would enable you to
trade shares and record trades electronically-it is swift, painless and attracts lesser charges.
As far as taxes are concerned, capital gains on listed debt/equity instruments are tax exempt till 2004 (time limit expected to be increased). Withholding tax is however payable @ 10% and is deducted. Yeh sab hota hai to the best of my knowledge.
Baaqi batein phir bataon ga
Pir Sb: None to my knowledge. There are a couple of professional real estate outlets but none of them is registered as a trust/fund (not a bad idea waisay yar :k: ). Why not leverage expertise in real estate management to launch a fund and share superior returns of your expertise with your fund unit holders? Hmm…smarty man in laltein..you!
pak real estate goes up and down, but so do other real estate markets..maybe not to that extent but there is some volatility expected. The challengewith individual investors especially in the case of overseas pakistanis is that they canbuy investment properties to gain income from but then collecting rent, repairs, dealing with potential squattors and other issues mean that a REIT which invests in commercial, residential, industrial properties all over the country and sells shares will be a pretty safe investment i.e. you gain the benefit of appreciation in real estate prices, depending on diff types or REITs out there u can focus on comemrical only, residential only.. urban only, suburban-urban mix etc. As long as the company is run properly, and has the clout to solve such squattor, rent collection, repair issues it will be a safer investment for overseas pakistanis.
currently trading at 53…close to its fair value as per recent broker reports.
we in any event are not the financial advisors to the upcoming issues so there is no conflict of interest :~)
kher yahin answer karne ki koshish karta hoon.