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Chapter # 1

INTRODUCTION
1.1 Introduction:
1.1.1Karachi stock exchange
Pakistan has three main stocks exchange which are the Karachi stock exchange (KSE), Lahore
stock exchange (LSE) and Islamabad stock exchange (ISE). Beside this KSE is one of the most
and major exchange in Pakistan. KSE is recognized on September 18, 1947. It consists of many
listing inside the country as well as overseas listings. In south Asia KSE is one of the second
oldest stock exchange. In 2002 due to the best performed it was established of stock market in
the world.
KSE-100 index is one of the most important stock market. In 2002 they are the world best stock
market. 100 companies listed in the KSE-100index. In 2004 they are the best stock market of the
world due to the best performing by the international magazine Business Week .
KSE-100 index gives the weight age of 100 listed company of Pakistan in the share market.
While the index moves with up and down of the 100 listed companies. About 34 sectors are
performed well and selected and the other is selected on the basis of market capitalization. About
659 companies have the market capitalization of Rs. 2068.19 billion in the market. And the
overall listed capital is 438.49 billion (June 30, 2005). It consists of common stock in which the
trading takes place. The total value of stock index is about Rs.1197 billion while the value of
market is Rs.1365 billion over the stock listed on the KSE. KSE set the new record in March
2005 and cross 10300 points. Due to the record all the marketers and investors concentrate to the
KSE. The market starts from 6000 points and cross 10000 points. So some variable influence the
share prices in which they up or down the share price. In this research we concluded that factor
and find those factors which affect the share prices and will explained what the volatility shows.

1.1.2 Bombay stock exchange


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Bombay stock exchange (BSE) is situated in the Dalal Street, Mumbai, Maharashtra, India. On
the basis of market capitalization it was the best stock market in the world. In Asia the Bombay
stock exchange is the first stock exchange. About 137 years BSE has helped by the growth of
Indian corporate sector. The Bombay stock exchange was established in 1875.
There are two most important international exchanges. One was the Deutsche Bourse and the
other was Singapore stock exchange as planned partners. It gives different kind of instrument for
trading that is debt instrument, derivatives and mutual funds. They have also small medium
enterprises (SME). About 5000 listed companies on BSE. Due to which they are the world no 1
stock exchange. BSE is the world, s fifth stock exchange due to the use of electronic. With the
help of this software the transaction take place. And it also one of the world, s exchange due to
index option.
BSE consisting of many other services including risk management, clearing, settlement. They
can touch with every customer in the world. For the safety of integrity BSE is deliberated the
system and process. This is the first stock exchange in the India and the second exchange in the
world. Due to which they get an ISO 9001. They also second in the world due to accept
Information Security Management
1.1.3Share price
For the country or economy stocks are very important for the development. If the stock prices are
goes up then the growth of the country or economy go raised and if the stock price goes down
then the country or economy growth go down. So stock prices are very important. Share prices
are predictable to increase the economic growth by provided to make better the the inside saving
and raised the quality and quantity of investment. On the performances of stock prices they are
affected by many variable , some are inside and some are outside.

1.2 Objectives of the research


To find out the variables which affect the share prices?
To find out the relation between share prices and the variable of the Karachi stock
exchange 100 index and the Bombay stock exchange.
There are 10 variables and I have use only 4 of them which is Book to Market ratio, price
earnings ratio , Dividends, and Interest rate. These variables are quantitative and to find
the path and force of the relationship.
1.3 Scope of the study
The data will be collected from different websites. In the analysis some companies have missing
the data because these companies performed best, due to which the data is missing or these
companies will not be present in 2002. For this kind of companies we will used estimated figure
and used the past and future data for the essential year.
1.4 Methodology of the research
The KSE data is available on the KSE website as well as on the Business Recorder. We collect
the data for the seven years available on the NYSE and KSE websites. Also for analysis we
conducted the data from different web sites; the interest rate data collects from official web site
of state bank of Pakistan and Federal Bureau of statistics. For Book to Market ratio as well as the
dividends and price earnings ratio we concluded the data from KSE web site and also from the
annual reports of the companies.
While for the Bombay Stock Exchange the data is available on the BSE website and from State
Bank of India. We conducted the data for seven year available on the BSE as well as on the SBI
web site. So we used the secondary data for our research for Karachi stock exchange as well as
for the Bombay Stock Exchange. The research is totally based on Secondary data.
After collecting the data we used random-effect model are applied on the KSE data as well as on
the BSE data to find out the strength and direction of the relation.
The sector and companies used for analysis are:
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Table 1.1 Lists of Company and Sector


S.NO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

SECTOR NAME
Bank
Bank
Bank
Construction and materials
Auto mobiles and parts
Oil and gas
Food producers
Fixed line communication
Tobacco
Bank
Bank
Personal care
Petroleum refinery
Commercial vehicles
Electrical equipment industry
Auto wheeler

COMPANY NAME
Meezan bank limited
Bank of Punjab
Bank al Habib
Al Abbas cement
Pak Suzuki motor ltd
Pakistan state oil
Nestle Pakistan
P.T.C.L
Pak tobacco
MCB bank ltd
State bank of India
Hindustan unilever
Bharat petroleum
Tata motor
Bharat heavy electrical ltd
Hero motor ltd

1.5 Hypothesis of the research


Our hypothesis is conducted from our data. We calculated different kind of variable as follow:
Book to Market ratio
Interest rate
Price earnings ratio
Dividends
Hypothesis is given by
H0: B/M ratio is negatively related with share price.
H1: /M ratio is positively related with share price.

H0: P/E ratio is negatively related with share price.


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H1: P/E ratio is positively related with share price.

H0: dividend is negatively related with share price.


H1: dividend is positively related with share price

H0: Interest rate is negatively related with share price.


H1: Interest rate is positively related with share price.

Chapter # 2
Literature review
Tsuyoshi Oyama (September 1997) conducted a research paper in Zimbabwe. This research
paper is about the relationship between stock prices and the macroeconomics variables in
Zimbabwe. The stock price from 1991 -1994 the writer fulfilled that in 1991-1992 the overall
movement of financial caused the large variation in the stock prices and the interest rates. The
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quick increase in 1993-1994 due to the move of (shift) of risk premium. It caused the part of
capital account liberalization. He defined that price earnings ratio and the interest rates get
amazing changes in the share prices of Zimbabwe stock exchange (ZSE).he used the error
correction model for this research paper and concluded that the relationship between stock
returns and the growth rate of money and reserves bills rates has been fixed.
This stock return is only based on a multi-factor return-generating model. And show that the
macro variables are changes after some times in the Zimbabwe stock exchange (ZSE) .These
variables cannot verify the undeterminable movement of return of stock from 1993 1994.
Supply shock also affect the inflation, so it is hard to find out that whether the present situation,
or whether support to high return, are sustainable.

Fillingum (1999) studied relationship among the share prices and the interest rates. According to
Fillingum studied he shows that economy and financial markets are affected due to the interest
rate. In 2001 state bank of Pakistan adopt lose financial policy due to the low interest rate, so
they not spur the production activity but also created vast demands in the whole economy. Due to
the low interest rate the spreads have declined 4% during the last five years.

G.R Fisher (2009) fined out that the relationship between British share price and different
quantitative variables. The function of this research is that, to show the affect of dividends. The
data is taken from the cross-sectional samples on the London stock exchange between 1949
1957.

Durands (An American economist) he works on the share prices and found out that relation
outcome of dividends on the share prices is larger than the similar relation effect of the
detentions.

Shapiro, O Meara and Johnson developed that the element of the dividends has bigger effect on
share prices than the element of undistributed profit.

Nasim Baig (2004) considered the Pakistan market and explained the P/E ratio as the key
determinant of share prices. According to his articles he show that the share prices are affected
by reports or information ,economical and political changes or even the weather news can also be
affected the ways share to move. Profitability, interest rate and price-earnings ratio have strong
relationship with share prices.
Price earnings ratio is calculated by is equal to the total capitalization divided by weight ages
Price earnings ratio has moved out by 100 percent while the KSE -100 index has moved out 274
percent. The difference showed that 15 percent are earning in 2002 while in 2003 only 76 percent
earning of the listed company.
Another factor is also explained as: when the economy is strong then the share price is influence
because it is finally accountable for the company profit. When the economy is growing then the
company profit is better and also the share prices are highly valued.

David Harper (2004) wrote the research paper and documented different forces that affected the
market .He explained different kind of forces, first was the price earnings ratio as like Nasim
Baig. He described some kind of past scenarios in which the price earnings ratio is increase
would be liable to increase the market share prices. Another force that he identified is the
economic growth. When the economic condition are good the investor are happy or confidence
on the stock and if the economic growth are good then the share prices are also high. Identified
by Yasir (2005).

J.Randall Wool ridge (2009) conducted the research paper about the unaccepted changes in the
value of preferred stock, common stock, and bonds. The earlier study goes to the changes and
gives that positive or negative dividends changes can make positive or negative changes in the in
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stock prices. The result has been conducted by the signaling feature of dividends. It is verified
that market signaling is the first feature to affect the security return. A wealth shift affect is not
important to missing.

Yasir (2005) concluded interest rate and Gross Domestic Product (GDP), as important factor for
the stock prices. The interest rate have negatively relationship with the stock prices due to the
earlier study conducted by the Yasir. The yasir show that if the economy is wealthy then the share
price will also be wealthy. He says that Pakistan economy has on the growth. About 8.4% growth
achieved in fiscal year 2005 and the required was about 6.6. %. This is the great achievement for
the economic growth to help in the KSE-100 index to grow with high speed. On the other hand
the GDP also affect on the share prices. According to the Yasir study he said that the GDP affect
is positive, so its relationship between GDP and share prices is positively related. In the last year
the GDP is about at US $ 74.2 billion over the figure of us 86.5 billion. So Yasir conducted that
the GDP rate is positively related with share prices.

Mr. Sultan (2005) examined Gross Domestic Product (GDP) and FDI with share prices. When
the economy is healthy the share prices will also be healthy defined by Mr. Nasim Baig in his
research paper. According to Mr. Sultan he said that the constant macroeconomics performance
with high rate of growth over 6% is attracting more and more asset than the before assets. The
forecast of large scale investment is higher than the 1990 and the past investors of that now talk
of investing are more. In the first half of FY 2005 the foreign direct investment (FDI) in the
ending of December was $ 445 billion.
Different kinds of authors conducted and explained that the record breaking spree at KSE 2007
that given different kinds of determinants of market. In the paper of daily times, s analyst offers
their views about the stock price of KSE 100 index.

Nawazish Mirza (2008) examined that B/M ratio as the important element for the share prices.
And he was conducted the complete research paper. According to his research paper he examined
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that the size and the value of premium specified will h and improved the investors to share more
and more stocks in the market , due to which the share prices in the market or economy goes
high and high. This premium is associated with Book to Market (B/M) ratio as defined by Fama
French to the model of the portfolio Return. The Nawazish Mirza examined that size also
important for the share prices. The return is also calculated by the market capitalization and book
to market ratio by used in Fama and French. As well as these factors also affect the share prices,
some other factors also affect the share prices that are the environmental and economic factors.

Ghana stock market (2008) unsimilar research was explained by Ghana stock market. They
collected the data of stock prices from 1991 2006. And they also did the data from databank of
Ghana, s stock market. The researcher examined the interest rates and used the T-bill; inflation
rate used the consumer index, and the inner most foreign direct investment and exchange rate as
macroeconomics variables. They used different kind of models that as correlation, regression and
integration. According to have articles he conducted that the exchange rate: the relation between
stock prices of Ghana and macroeconomics has highly related. On the other hand the interest
rate, the inflation rate and foreign direct investment are the important factors of the share prices
in Ghana markets.

Mr. Adil Najam (2008) wrote the research paper. According to his research or articles he
supposed that a lot of investors made the money market from the good news and the bad news in
the markets. KSE is more and more affected from the international investors due to more and
more investors. On the other hand they are not so much affected from the local investors because
there are few investors invest in the KSE.

Olabisi Onabanjo concluded the share prices. The researcher examined some factor which they
name an information factors included gross domestic product, crude oil prices, foreign exchange
rate, interest rate and inflation rate. The researcher used Al-Tamimi model to lose the factors.
They also used some test for the relation that as the multi-correlation test to exposed the
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correlation between the gross domestic product and crude oil price, and also test between the
gross domestic product and foreign exchange rate, lending interest rate and inflation rates. From
his research he concluded that and find out that all these variables are highly positive correlated
with the share prices separate from interest rate and foreign exchange rate, these variables are
highly negative related with the share prices.

S.C. Srivastava (December 08, 2008) concluded the research paper in India. According to his
article he shows that the stock price is highly influenced by the dividends and earnings. And the
retained earnings are not influenced by the share prices. The prices of the company governed on
their past performances and future performances. Earnings are measure with the help of
dividend; dividend payout will be on price. The researcher used regression models for the
analysis. Ahsan Mehanti recommended that for bullish movement in market the earning and
expectation are very important.

Chapter #3
Methodology
3.1 data collection:
Our research is basically totally on secondary data. So the data is available on different websites.
The dependent variable is share prices and the data of share price is available on the KSE and
BSE websites. About 34 sectors are listed with KSE 100 index and 20 sectors are listed with
Bombay stock exchange. The companies are selected according to their performance. 10
companies are select from Karachi stock exchange and 6 companies are select from Bombay
stock exchange. So for this research we selected 16 companies.

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About 10 companies are selected from KSE 100 index and 6 companies are selected from
Bombay stock exchange. So the sample size for the research is 16 and well be find out the
relationship between share price with B/M ratio, interest rate, price earnings ratio and dividend
payout ratio. For this research we conducted the data for 7 year from 2002 to 2008.The KSE 100
index data are taken from the official site of KSE and the BSE 500 index are taken from the BSE
websites; while the interest rate data are taken from the State bank of Pakistan and State bank of
India.

3.2 instruments and Measures/Calculations:


3.2.1 Interest rate:
The interest rate is conducted for the 7 years and their rates are taken from the state bank of
Pakistan and state bank of India websites.
3.2.2 Dividend:
It is calculated from the company face value which is given in the financial analysis of Karachi
stock exchange and Bombay stock exchange. Formula is given by
Equation 3.1

Dividend per Share = (%age of Dividend/100)*Face value.


3.2.3 B/M Ratio:
For book to market ratio for both the companies Karachi stock exchange as well as Bombay
stock exchange the book value and market is provided. So it is taken from the share price of the
company on 31th Dec for required year. While to find the book value we needed the number
share as well as total equity. The formula is given by
Equation 3.2

Book value per share = total equity / number of share


Equation 3.3

B/m Ratio = Book value per share / market value per share
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3.2.4 P/E Ratio


For price earnings ratio we need price of share. The share price is present on the 31 st of
the December for the corresponding year and earnings. P/E is calculated from price per
share and earnings per share as
Equation 3.4

EPS = Profit after tax / number of shares


Equation 3.5

P/E Ratio = market value per share / Earning per share


3.3 Variables:
Two kind of variables are used for this research, as follow
3.3.1 Dependent Variable:
The share price is only the dependent variables used for this research
3.3.2 Independent Variable:
The B/M ratio, interest rate, dividend and price earnings ratio are the Independent variables used
for this research. The table is given for the independent variables:
Table 3.1

TERMINOLGY

IR

DEFINITION

UNIT

SOURCE

Interest rate

In Percentage

www.statpak.gov.pk
www.sbi.gov.com

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Dividend per share

DPS

In Percentage

www.statpak.gov.pk
www.sbi.gov.com

B/M RATIO

Book to Market Ratio

In Percentage

www.statpak.gov.pk
www.sbi.gov.com

Price to Earning Ratio

P/E RATIO

In Percentage

www.statpak.gov.pk
www.sbi.gov.com

3.3.3 Theoretical Framework

Interest Rate

Dividend

Share Price

Book To Market Ratio


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Price To Earnings Ratio

Table 3.2
Coefficient

Std.Error

t-ratio

Sig ( p-value)

337.183

102.037

102.037

0.00130

Interest rate

-0.177877

1.88958

1.88958

0.92518

Dividend

-0.00476029

0.0436896

0.0436896

0.91344

B/M ratio

-56.3

31.8967

31.8967

0.08043

P/R ratio

-0.0118917

0.0437461

0.0437461

0.78628

Country

97.602

168.375

168.375

0.56337

Model
1

(constant)

Dependent variable: Share Price

3.4 Interpretation of Model:


The significance level of research is check from P value. In my research constant coefficient
value is .00130. So it is significant because its value is less than from significance level which is
10%. In the research the p-value determined between Karachi stock exchange and Bombay stock
exchange show that the effect of independent variables is significant or not. The independent
variable explained below.

3.4.1 Interest Rate


It is concluded from our hypothesis that the interest rate is insignificant. This value is show from
p-value which is 0.92518 which is greater than from significant level. So the interest rate is
negatively related of the Karachi stock exchange and Bombay stock exchange with share price.
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Karachi stock exchange and Bombay stock exchange are two oppositely stock exchange and
their interest rate is also change. Therefore the interest rate is negatively related with share price.

3.4.2 Dividend per share


It is proves from our hypothesis that the dividend is negatively related between Karachi stock
exchange and Bombay stock exchange with share price. Its p-value is .91344 greater than from
signifance level. In my research level of confidence is 90% is used.
Dividend well increase when buyer is more than seller in the market. Due to this share price
increase and dividend also increase.
3.4.3 B/M Ratio
We need Book value and Market value for the calculation of Book To market Ratio. The
significance level of B/M ratio is shown from p-value. This p value is 0.08043. So it is less
than from level of confidence which is 90%. It is proves that the B/M ratio is positively related
between Karachi stock exchange and Bombay stock exchange with share price.
3.4.4 Price to earnings ratio
From our hypothesis it is concluded that the price to earnings ratio negatively related. This show
from the p-value which is 0.78628, because it is greater than from level of confidence which is
90% So price to earnings ratio is negatively related with share price.
3.4.5 Country effect:
It is concluded from the hypothesis that country effect is also negative because its values is
greater than from level of significant which is 90%. The value of p-value is 0.56337. So the
country effect is also negative on share price between these two stocks.
3.5 Coefficient:
The coefficients of independent variables are explained below:
3.5.1 Interest rate:
If 1 percent change in interest rate then coefficient of interest rate is -.177877. It means that the
relation between share price and interest rate is negative. If share price increase then interest rate
is decrease.
3.5.2 Dividend per share
If I unit change in dividend than the coefficient of interest rate is -.00476029. So here also
negative relation, if share price decrease then dividend per share is increase. So the relationship
is negative.
3.5.3 B/M ratio
The coefficient of B/M ratio is -56.3 so it is also negatively related. If share price increase than
B/M ratio decrease.
3.5.4 Price to earnings ratio
The coefficient of P/E ratio is -0.0118917. So P/E is also negatively related. If share price
increase then P/E ratio decrease.
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3.5.5 Country effect The coefficient of country effect is 97.602. So it is positively related with
share price. It share price increase then country effect also increase and if share price decrease
then country effect also decrease.

Chapter # 4
Conclusion
4.1Conclusion:
This research was concluded that to find various factor of share price and also that factor which
affect the share price of the Karachi stock exchange and Bombay stock exchange. We studied
different type of factor which affects the share price like demand and supply, news, Earning per
share, price earnings ratio, dividend effect but I selected only interest rate, dividend per share,
book to market ratio and price to earnings ratio as independent variables. The result shows that
the interest rate, dividend per share and price to earnings ratio does not affect on share price.
Only the Book to Market ratio is affected on share price between Karachi stock exchange and
Bombay stock exchange.
The research results clearly shows that the interest rate, dividend per share and price to earnings
ratio is negatively related between Karachi stock exchange and Bombay stock exchange with
share price. While the book to market ratio is positively related with share price. So the
hypothesis that we developed for dividend per share, interest rate, and book to market ratio and
price to earnings in the introduction chapter became true.

4.2 Recommendations
It is recommended from the research that the government of Pakistan and India should make the
policy that will give confidence to the market and investor. When we stable the economics and
political condition they will lead high growth and also they will attract the FDI.
It is also recommended that from company point of view when we increase the investors
confidence they will attract the small and medium investors. Company has some policy so they
cannot loss the investors confidence. Every investor invests anywhere and earn more and more
money and secure his money. When we earn more and more money we should attract more and
more investors
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(adil, 2008) KSE-100 Index Sets New Record; what is the Market

Telling Us?
(Durand, 1955) 1955), Bank Stocks and the Analysis of Covariance,

Econometrica,
Vol. 23. No.1, pp. 30-45
G.R,Fisher,(2009).Some

factor

influencing

share

price,The

economic

Journal,Vol 71,NO 281,, PP 121-141.


Al-Tamami,Hussain(2007),Factor effecting share price in the UAE Financial
market, Singapore Economic Review. Singapore, August 2-4,2007
Juhnson.Lyle.R,Sgepiro.Eli,Joseph, O Meara Jr (1951). Valuation Approach to
an Objective Method, University of Pennsylvania Law Review. Vol. 100- No 2.
Pp.165-195
Malik A.Ahsan M. (December 2007). Record Breaking-Spree at KSE on
better earnings Expectation, Daily times-Daily E-News Paper
Nawazish, Elahi M. (2008), Size and Value Premium in Karachi Stock
Exchange, Cahier DRM Finance , Vol.2008, No 6, pp 1-39
Oseni, Jimoh E.(2009), Determinants of Equity Prices in the Stock Markets,
International Research Journal of Finance and Economics, Vol ISSN 1450
2887
Oyama T, (1997), Determinants of Stock Prices , The Case of Zimbabwe,
IMF Working Paper Vol 1, No 44
Srivastava. S.C (1968), Share Prices, Dividends and Earnings , Economics
and Political Weekly, Vol.3, No. 48, pp M89 0f M89+M91+M93-M95
Woolridge.J.Randill (1983), Dividends changes and Security Prices, The
Journal Of Finance, Vol. 38, NO. 5, pp 1607 1615
Adam, Anokye M.and Tweneboah, George, Macroeconomic Factor and Stock
Market Movement: Evidence from Ghana ( October 1,2008 ) Available at
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SSRN:http://ssrn.com/abstract=1289842

or

http://dx.doi.org/10.2139/ssrn.1289842

Annexure
company name
Meezan bank ltd

years
2002
2003
2004
2005
2006
2007
2008
years
2002
2003
2004
2005
2006
2007
2008

share price
23.25
35.63
48.69
60.25
74.24
80
112.02
share price
80.25
125.02
148
180
220.25
325.25
402.25

InterestRate dividend
0.08
1
0.08
1
0.08
1.5
0.09
1.6
0.1
1
0.1
2
0.15
0.86
InterestRate dividend
0.08
0
0.08
2.5
0.08
4
0.09
5.2
0.1
3.2
0.1
3.5
0.15
0

B/Mratio
0.1
0.03
0.05
0.03
0.04
0.07
0.09
B/Mratio
0.04
0.06
0.06
0.08
0.08
0.09
0.09

P/E ratio
15.12
10.11
13.12
12.52
15.92
10.51
15.2
P/E ratio
5.59
5.09
7025
10.23
7.71
9.31
-60

company name
bank al Habib

years
2002
2003
2004
2005
2006
2007
2008

share price
145.25
170.25
190.25
250
356.23
400.25
480.55

InterestRate dividend
0.08
2.5
0.08
1
0.08
3.5
0.09
4
0.1
4
0.1
3
0.15
4

B/Mratio
0.04
0.05
0.5
0.07
0.07
0.08
0.09

P/E ratio
2.68
9.36
4
6.68
6.69
6.01
4.95

company name
pak state oil

years
2002
2003
2004
2005
2006
2007
2008

share price
218.5
376
519.95
770
1000
1800
1333.5

InterestRate dividend
0.05
2
0.08
0
0.08
0
0.07
0
0.1
0
0.1
0
0.15
0

B/Mratio
0.04
0.06
0.07
0.06
0.06
0.05
0.07

P/E ratio
7.5
9.7
10.4
11.6
7
14.3
5.1

company name
bank of Punjab

18

company name
pak suzuki motor ltd

years
2002
2003
2004
2005
2006
2007
2008

share price
155.23
178.23
195.25
220.25
260.55
300.25
425.32

InterestRate dividend
0.08
2
0.08
1
0.08
1.5
0.09
0.8
0.1
1
0.1
1
0.15
2

B/Mratio
0.1
0.4
0.04
0.03
0.02
0.05
0.07

P/E ratio
12.6
14.3
9.9
10.1
11.8
9.4
12.4

company name
al abbas cement

years
2002
2003
2004
2005
2006
2007
2008

share price
218.55
250.23
302.55
350
450.23
760
856.32

InterestRate dividend
0.07
3
0.07
3
0.09
2
0.09
1.5
0.1
2.5
0.1
1.5
0.15
1

B/Mratio
0.04
0.06
0.07
0.06
0.06
0.05
0.07

P/E ratio
0.56
0.04
-2.58
-2.16
0.173
-1.242
-0.59

company name
nestle pakistan

years
2002
2003
2004
2005
2006
2007
2008

share price
218.5
376
519.95
770
1000
1800
1333.5

InterestRate dividend
0.08
12
0.08
14
0.08
15
0.09
25
0.1
5
0.1
10
0.15
7.5

B/Mratio
0.04
0.06
0.07
0.06
0.06
0.05
0.07

P/E ratio
2.31
22.43
23.78
30.4
33.27
45.22
29.43

company name
P.T.C.L

years
2002
2003
2004
2005
2006
2007
2008

share price
26
36.65
44.2
65.4
44.5
42.05
16.89

InterestRate dividend
0.08
2.75
0.08
3.5
0.08
5
0.09
2
0.1
5
0.1
2
0.15
0

B/Mratio
0.5
0.43
0.37
0.3
0.46
0.52
1.54

P/E ratio
9.22
8.1
7.73
12.54
10.92
13.71
6.45

company name
pak tobacco

years
2002

share price
23.8

InterestRate dividend B/Mratio P/E ratio


0.08
0.8
0.46
21.12

19

2003
2004
2005
2006
2007
2008

27
61.5
68.95
72
155.5
106.3

0.08
0.08
0.09
0.1
0.1
0.15

company name
MCB bank

years
2002
2003
2004
2005
2006
2007
2008

share price
33.35
51.4
58.7
167.8
247
399.95
125.81

company name
state bank of india

years
2002
2003
2004
2005
2006
2007
2008

company name
hindustan unilever ltd

company name
bharat petroleum co ltd

0.41
0.21
0.21
0.23
0.1
0.13

21.48
23.62
13.33
9.66
16.46
20.49

InterestRate dividend
0.08
2.5
0.08
2.75
0.08
2.5
0.09
4.25
0.1
7.5
0.1
12.5
0.15
6

B/Mratio
0.69
0.71
0.75
0.33
0.28
0.18
0.47

P/E ratio
8.23
7.06
7.79
8.02
11.11
16.46
6.87

share price
266.68
508.07
508.07
508.07
1175.51
2237.04
1288.25

InterestRate dividend
0.9
6
0.08
8.5
0.05
11
0.05
12.5
0.07
14
0.09
14
0.92
21.5

B/Mratio
1.1
0.64
0.75
0.9
0.44
0.26
0.6

P/E ratio
0.81
0.86
0.83
0.81
0.83
0.59
0.58

years
2002
2003
2004
2005
2006
2007
2008

share price
181.75
204.7
143.5
197.25
216.55
213.9
250.25

InterestRate dividend
0.91
25
0.66
30
0.12
30
0.19
25
0.1
25
0.25
30
-162.18
30

B/Mratio
0.09
0.04
0.06
0.05
0.05
0.03
0.03

P/E ratio
0.08
0.08
0.05
0.06
0.08
0.08
0.1

years
2002
2003
2004

share price
108.38
225.13
229.43

InterestRate dividend
1.55
11
2.45
13
1.04
11.5

B/Mratio
1.3
0.7
0.84

P/E ratio
0.38
0.41
0.56

20

1
2.2
5
7040
9.4
3.75

2005
2006
2007
2008

217.1
168.4
261.78
187.98

1.39
2.47
4.77
6.77

years
2002
2003
2004
2005
2006
2007
2008

share price
30.16
84.56
94.44
122.08
168.3
138.73
180.5

company name
years
bharat heavy electrical ltd 2002
2003
2004
2005
2006
2007
2008
company name
years
hero motor limited
2002
2003
2004
2005
2006
2007

share price
17.26
50.8
76.99
138.63
229.82
516.85
272.48
share price
271.4
448.85
571.1
859.7
762.35
697.65

company name
tata motor ltd

21

7.5
2.5
10
4

0.98
1.7
1.08
1.7

0.32
0.09
0.49
0.43

InterestRate dividend
2.22
4
3.12
4
2.25
4
2.34
12.5
3.5
13
4.55
13
4.71
15

B/Mratio
1.65
0.96
1.07
0.93
0.85
1.2
1.12

P/E ratio
0.88
0.93
0.22
0.34
0.39
0.49
0.52

InterestRate dividend
0.5
4
0.54
4
0.6
3
0.81
4.5
0.58
2
0.43
6
0.35
6
InterestRate dividend
0.22
4
0.24
4
0.22
4
0.17
12.5
0.15
13
0.13
15

B/Mratio
10.46
3.86
2.8
1.77
1.2
0.5
0.8
B/Mratio
0.14
0.09
0.09
0.08
0.13
0.17

P/E ratio
0.15
0.18
0.26
0.38
0.68
0.98
0.58
P/E ratio
0.25
0.29
0.36
0.4
0.84
0.42