Hum Islamic Brokerage Services

1
Hum Islamic Brokerage Services
Hum Securities present Pakistans Premier
Islamic Financial Brokerage Services.
2
WELCOME To HUM SECURITIES LIMITED   
Welcome to Hum Securities Limited. a renowned
and reputed brokerage house working as a
corporate member of Karachi Stock Exchange (KSE)
since 2005. Our MissionWorking Together
To Achieve Financial Goal
HUM ISLAMIC BROKERAGE SERVICES (HIBS)
3
Financial crisis of 20072010

• The financial crisis of 2007 to the present is a
  crisis triggered by a liquidity shortfall in the
  United States banking system. It has resulted in
  the collapse of large financial institutions, the
  bailout of banks by national governments, and
  downturns in stock markets around the world.

• The collapse of the housing bubble, which peaked
  in the U.S. in 2006, caused the values of
  securities tied to real estate pricing to plummet
  thereafter, damaging financial institutions
  globally
• securities suffered large losses during late 2008
  and early 2009. Economies worldwide slowed during
  this period as credit tightened and international
  trade declined. Critics argued that credit rating
  agencies and investors failed to accurately price
  the risk involved with mortgage-related financial
  products.
• Arab world had lost 3 trillion due to the
  crisis. In April 2009, unemployment in the Arab
  world is said to be a 'time bomb'.

HUM ISLAMIC BROKERAGE SERVICES (HIBS)
4
Impact on Pakistans Economy
Pakistan is another country in South Asia that
has been severely affected by the financial
crises. In fact, Pakistan seems to be one of the
hardest hit with this global crisis. Its economy
is already in crises. Pakistan is also facing a
serious liquidity crunch, with the only solution
being international support. The only option for
Pakistan is to approach international monetary
fund, which will set highly stringent conditions
for the nation.
HUM ISLAMIC BROKERAGE SERVICES (HIBS)
5
EFFECTS ON STOCK MARKET

• May 23 Record high inflation in the month of
  May, 2008 resulted in the unexpected increase in
  the interest rates by State Bank of
  Pakistan which eventually resulted in sharp fall
  in Karachi Stock Exchange.
• July 16 KSE-100 Index dropped one-third from an
  all-time high hit in April, 2008 as rising
  pressure on shaky Pakistan's coalition government
  to tackle Taliban militants exacerbates concern
  about the country's economic woes.
• August 18 KSE 100 Index rose more than 4 after
  the announcement of the resignation of
  President Pervez Musharraf but Credit Suisse
  Group said that Pakistan's Post-Musharraf rally
  in Stock Exchange will be short-lived because of
  a rising fiscal deficit and runaway inflation.
• August 28 Karachi Stock Exchange set a floor for
  stock prices to halt a plunge that has wiped out
  36.9 billion of market value since April.
• December 15 Trading resumes after the removal of
  floor on stock prices that was set on August 28
  to halt sharp falls.

6
THE ALTERNATE TO ELEMINATE CRISIS
Islamic banking and finance is a topic of the hot
discussion world over especially after economic
meltdown. Leading economists and financial
experts have recognized Islamic finance as the
better and sustainable alternative to the
problems of modern economic order. Developed and
developing nations of east and west including
London, Singapore, Hong Kong and Paris are moving
for Islamic finance hubs. Throughout the current
economic and financial crisis one contrarian
statistic has stood out. Financial assets offered
by the Islamic Financial Services Industry (IFSI)
and generally classified as Shariah-compliant, 
were less affected by the crisis.
HUM ISLAMIC BROKERAGE SERVICES (HIBS)
7
ISLAMIC INVESTMENT IDEOLOGY   Islam provides us
comprehensive and straight path of life, which
covers all of its aspects, and guide us
accordingly, through this we handle individual
and social, material and moral, economic and
political, legal and cultural, national and
international aspects of life. In fact earning,
saving and investment can become acts of Ibadah
if done according to Shariah.  
HUM ISLAMIC BROKERAGE SERVICES (HIBS)
8
Islamic Industry Products and Services

• Takaful is an Islamic insurance concept which is
  grounded in Islamic muamalat (banking
  transactions), observing the rules and
  regulations of Islamic law.

• Islamic banking refers to a system of banking or
  banking activity that is consistent with the
  principles of Islamic law (Shariah) and its
  practical application through the development of
  Islamic economics

• Sukuk ("legal instrument, deed, check") is the
  Arabic name for financial certificates, but
  commonly refers to the Islamic equivalent of
  bonds. Since fixed income, interest bearing bonds
  are not permissible in Islam, Sukuk securities
  are structured to comply with the Islamic law and
  its investment principles, which prohibits the
  charging, or paying of interest.

• Ijarah means lease, rent or wage. Generally,
  Ijarah concept means selling the benefit of use
  or service for a fixed price or wage. Under this
  concept, the Bank makes available to the customer
  the use of service of assets / equipments such as
  plant, office automation, motor vehicle for a
  fixed period and price.

HUM ISLAMIC BROKERAGE SERVICES (HIBS)
9
Islamic Industry In Pakistan

• Although Pakistan is a late starter to
  systematically promote IF relative to few other
  Countries, growth in its IF-industry is
  substantive. Today Pakistan has
• 6 full fledged Islamic banks 4 operational
• 13 conventional banks with Islamic banking
  branches
• Over 150 total licensed Islamic banking branches
  in 25 cities town
• 2 licensed Takaful companies
• Half dozen Islamic mutual funds (IsMFs) with
  total assets of over Rs7 billion (US 0.12
  billion)
• The growth and development of the Islamic
  industry has been remarkable after its induction
  in the countrys economical system parallel to
  the conventional industry. The growth rate is
  expected to be 15 every year. The increasing
  number of institutions that are incorporating
  with the Islamic modes of financing clearly
  elaborates the potential of this huge profitable
  industry.

HUM ISLAMIC BROKERAGE SERVICES (HIBS)
10
Islamic Industry Pyramid
HUM ISLAMIC BROKERAGE SERVICES (HIBS)
11
Islamic Industry Pyramid
HUM ISLAMIC BROKERAGE SERVICES (HIBS)
12
INTRODUCTION HUM ISLAMIC BROKERAGE
(HIBS)    Hum Islamic Brokerage Services (HIBS)
The Premier Islamic brokerage services in
Pakistan. HIBS is a newly established department
of Hum Securities Limited, a renowned and
reputed brokerage house working as a corporate
member of Karachi Stock Exchange (KSE) since
2005. HIBS offers Shariah Compliant
professional and technologically advance
brokerage services to all investors looking for
value added brokerage services. Our objectives
are
HUM ISLAMIC BROKERAGE SERVICES (HIBS)
13

• HUM ISLAMIC BROKERAGE (HIBS)  OBJECTIVES
•  
• HIBS brings to you a wide range of investment
  options which are profitable and at the same time
  compliant to Islamic / Shariah standards.
•  
• HIBS provides you best financial services which
  are strictly
• Shariah compliant and follows best international
• standard practices.
•  
• Investment in Stocks / Shares
• Islamic Investment Pools
• Online Trading
• Expert Advisory Service Commodity Trading
• Dedicated Support by Calls, SMS , and E-Mails
• Profit and Loss Sharing account

HUM ISLAMIC BROKERAGE SERVICES (HIBS)
14
WHY BUY STOCKS AS AN INVESTMENT ?   At
present, Investment can be made in many different
ways like Bonds, Bank deposits, saving
certificates, all these investments are interest
based. The Real Estate is comparatively non
liquid investments. On the other hand Stocks are
highly liquid and provides interest (Riba) free
investment through Shariah Compliance stocks
under the guidance of qualified and reputed
Shariah experts who select 100 stocks under the
strict Shariah Screening Criteria.
HUM ISLAMIC BROKERAGE SERVICES (HIBS)
15

• SHARIAH SCREENING CRITERIA
• Business of the Investee Company
• Debt to Total Assets
• Should be less than or equal to 40
• Non-compliant Investments to Total Assets
• non compliant investments to total assets should
  be less than 33.
• Non-complaint Income to Total revenue
• non compliant income to total revenue should be
  less than 5. Total revenue
• Illiquid Assets to Total Assets
• The ratio of illiquid assets to total assets
  should be at least 20. Illiquid asset

16

• WHAT IS KMI-30 INDEX
•  
• The objective of KSE- Meezan Index (KMI-30),
• is to serve as a gauge for measuring the
  performance of Shariah Compliant Equity
  Investment,
• and it also provides investors with a suitable
  benchmark for comparing returns on their Shariah
  Compliant Investments.

HUM ISLAMIC BROKERAGE SERVICES (HIBS)
17

• TECHNICAL SCREENING CRITERIA
•  
• Company should not in a default counter
• Available in CDC
• Listing history of at least two months on KSE
• Operational track record at least one financial
  year
• Minimum free float share of 5
• Securities are traded for 75 of the total
  trading days
• Mutual funds are intangible for inclusion in
  KMI-30.

HUM ISLAMIC BROKERAGE SERVICES (HIBS)
18
Companies In KMI -30 INDEX KMI-30  
1. Attock Cement Pakistan Limited
16. Oil and Gas Development Ltd.      
2. Attock Refinery Limited 17. Pakistan
Oil Field Limited       3. Attock Petroleum
Limited 18.
Pakistan State Oil Limited        4. Atlas
Battery Limited
19. P.T.C.L. oA       5. D.G. Khan
Cement Company Limited 20.Packages
Limited        6. Fauji Fertilizer Company
Limited 21. Pak Refinery Limited       7.
Fauji Fertilizer Bin Qasim Limited 22.
Pak Suzuki Motors Limited       8.
GlaxoSmithKline Pakistan Limited 23.Siemens
Pakistan Engineering limited       9. ICI
Pakistan Limited 24. Sitara Peroxide
limited       10. Indus Motor Company Limited
25.Pakistan Petroleum Limited        11.
Lottee Pakistan PTA Limited 26. Sui
northed Gas Pipeline limited       12. Lucky
Cement Limited 27.Sui Southern Gas
Company Limited       13. Mari Gas Company
Limited 28. Thal Limited        14.
Millat Tractors Limited. 29. Tri-Pack
Films Limited        15. National Refinery
Limited   30. Unilever Pakistan Limited
      
HUM ISLAMIC BROKERAGE SERVICES (HIBS)
19
Performance Evaluation of KMI from past 2 Years
HUM ISLAMIC BROKERAGE SERVICES (HIBS)
20
Difference Between Conventional and Islamic
Brokerage System

• Islamic Brokerage

• Conventional Brokerage

• Intraday trading is prohibited
• Margin finance is not allowed
• Cash settled futures is prohibited
• Investment in banks, insurance and any company
  conducting non-shariah business is not allowed

• Intraday trading is allowed
• Margin finance is allowed
• Cash settled in future is allowed
• Investment in banks, insurance companies, etc.
  is allowed

HUM ISLAMIC BROKERAGE SERVICES (HIBS)
21

• OUR PRODUCTS
• Brokerage
• Dedicated dealer conduct transaction on the
  behalf oc client with a restriction to follow
  complete shariah scripts with also islamic rules
  and regulations.
• Zero Commision Investmnet Pool
• No commission will be charged,
• consultancy fee will be cahrged _at_ 25 in term of
  profit.
• Invesment Pool Profit Loss Sharing
• Commission with normal bracket wil be charged,
• Profit and loss wil be beared by company _at_ 2080

HUM ISLAMIC BROKERAGE SERVICES (HIBS)
22
THANK YOU!
HUM ISLAMIC BROKERAGE SERVICES (HIBS)