How to buy shares in KSE

[SBD-3]

Forever.


I am investing for long term like 5 years or so.

DCR says that for first 10 years, the yield will be 10% then after 15 years, investor should be able to get 15%.
I'd rather buy a growth company if I am to invest for,say, grrater than 5 years.

OK. So can we use all the deposit like 25000 or more to buy shares?


BMA, Taurus.
which is better. I have heard Taurus is bad.

1-Yes you can.
2-I am using Taurus and they are okey (I have my "buy and hold" scrips with them).
Taurus has the following advantages
a)Strong parent company (NBP) which means they wont run away with your money like Ace walas did recently.
b)Good research (Though I do my own)
c)Good Customer Services
4)Their dealing terminal (tradecat) is relatively better than FS's eclipse.
the downside is
d)They take two days to credit your funds.
e)Outside Karachi their reach is limited. Onlu three offices I think (Lahore and Peshawar I think)

 

[Archie]

I don't think it's a topic of discussion for a Defence forums.
But their are 3 points of view.
First is to invest in a Blue Chip stock, and forget about it for a few years,
2nd is to be involved in day tradings ie buying and selling on a daily basis, if you are good at this, then you can make 30-40% return on capital in a year
Third is to invest in a startup with potential

For instance people who invested in Flipkart in year 2006, have seen their investment grow a 100 times, as Flipkarts valuation went from 300 Million USD to 30 Billion USD

 

[Faiez]

DCR says that for first 10 years, the yield will be 10% then after 15 years, investor should be able to get 15%.
I'd rather buy a growth company if I am to invest for,say, grrater than 5 years.

But that was on their IPO prospectus....what was the IPO price ?

 

[Archie]

Talking about my investments

Well I have about 25% holdings in stock market, 25% in fixed deposit, another 15% in wife's Jewelry, rest in Bank account

 

[SBD-3]

50,000 rupees.

5000 for online trading
Foundation Securities (Pvt) Limited | Our Product

But that was on their IPO prospectus....what was the IPO price ?

11PKR.

 

[Faiez]

11PKR.

And it's still trading for a similar price, a little less than 11.

It seems like a nice investment....I don't know the REIT regulations in Pakistan, but in USA you need to give away 90% of your net income as dividends. Is that the case in Pakistan too ?

 

[SBD-3]

And it's still trading for a similar price, a little less than 11.

It seems like a nice investment....I don't know the REIT regulations in Pakistan, but in USA you need to give away 90% of your net income as dividends. Is that the case in Pakistan too ?

Because of its gigantic float. The mere IPO had 138 Million units on offer. The previous IPOs featured 10-25 Million shares. The IPO went partially subscribed as a result.

 

[black-hawk_101]

DCR says that for first 10 years, the yield will be 10% then after 15 years, investor should be able to get 15%.
I'd rather buy a growth company if I am to invest for,say, grrater than 5 years.


1-Yes you can.
2-I am using Taurus and they are okey (I have my "buy and hold" scrips with them).
Taurus has the following advantages
a)Strong parent company (NBP) which means they wont run away with your money like Ace walas did recently.
b)Good research (Though I do my own)
c)Good Customer Services
4)Their dealing terminal (tradecat) is relatively better than FS's eclipse.
the downside is
d)They take two days to credit your funds.
e)Outside Karachi their reach is limited. Onlu three offices I think (Lahore and Peshawar I think)

What do you mean? That if I bought DCR shares then they will not become double or tripple till next year?

 

[surya kiran]

@black-hawk_101

I am assuming you are new to the stock markets. My suggestion would be to first start small. Small means small amounts of money. Do not try speculation or trading. Karachi Stock Exchange will have an index. Monitor it on a daily basis for one month. Read the books by Peter Lynch. They make very easy reading for a layman.

When selecting a broker, do not select purely on the basis of brokerage. Go to their website or talk to a representative. Does the brokerage send you a daily report? Does the brokerage have a section where you can conduct your own research...like financial figures of the company.

Once you have the above two in place, then look at picking up stocks. Pick stocks which are run by professionals and has consistently given dividend. Once you pick a stock, monitor it. Don't panic if prices drop.

Most importantly, do not get over-confident. Do not put all your money in the stock markets. Invest, do not trade.

 

[SBD-3]

What do you mean? That if I bought DCR shares then they will not become double or tripple till next year?

they are consistant cashflow shares with gradual appriciation. They wont double tripple over year.

 

[Faiez]

they are consistant cashflow shares with gradual appriciation. They wont double tripple over year.

u didn't answer my question about REIT regulations.....Are they required to pay 90% of taxable income as dividend in Pakistan? or a different percentage or no requirement or what ? what are the REIT regulations in pakistan....?

Also, do you know how the broker treats dividends? As in, is it credited to my account or what ?

Also, if you have any info regarding what's the best broker available in lahore for trading kse stocks.....?

 

[black-hawk_101]

they are consistant cashflow shares with gradual appriciation. They wont double tripple over year.

But you mean that it will not going to drop in coming time. Also, tell what you and market expect from its dividend side. Like How much will they give it on yearly basis as it would remaining from Rs.11-16 or so.

 

[SBD-3]

u didn't answer my question about REIT regulations.....Are they required to pay 90% of taxable income as dividend in Pakistan? or a different percentage or no requirement or what ? what are the REIT regulations in pakistan....?

Also, do you know how the broker treats dividends? As in, is it credited to my account or what ?

Also, if you have any info regarding what's the best broker available in lahore for trading kse stocks.....?

There is only one recent development i.e. If a listed company holds more retained earnings than paidup capital then either they pay 40% of their profit in dividend or a bonus equal to 50% of their issued and paid up capital.
DCR is the first of its kind in Pakistan so as more REITs are listed, the regulations will also evolve.

 

[Faiez]

But you mean that it will not going to drop in coming time. Also, tell what you and market expect from its dividend side. Like How much will they give it on yearly basis as it would remaining from Rs.11-16 or so.

DCR is a REIT. Search on internet about REITs. What a REIT does is that it buys properties and rents it out and the rental income is distributed to share holders in the form of dividends. A REIT gets some tax advantages (lower rates, in some countries no corporate tax etc etc). So a REIT is a way of investing in rental real estate without the hassle and without having the minimum capital necessary for the ordinary investor. Naturally it's going to be a slow and steady kind of thing, like real estate.

 

[black-hawk_101]

DCR is a REIT. Search on internet about REITs. What a REIT does is that it buys properties and rents it out and the rental income is distributed to share holders in the form of dividends. A REIT gets some tax advantages (lower rates, in some countries no corporate tax etc etc). So a REIT is a way of investing in rental real estate without the hassle and without having the minimum capital necessary for the ordinary investor. Naturally it's going to be a slow and steady kind of thing, like real estate.

But you can say that its more stable and trust worthy to invest in such a company that any other. Like in production or manufacturing companies. Right?

There is only one recent development i.e. If a listed company holds more retained earnings than paidup capital then either they pay 40% of their profit in dividend or a bonus equal to 50% of their issued and paid up capital.
DCR is the first of its kind in Pakistan so as more REITs are listed, the regulations will also evolve.

So, it means that investing there is good! So what company would suit me best? BMA or tauraus.?