Vous êtes sur la page 1sur 1

ANALYSIS ON MCB AND HBL STOCK PROFILE

As it is visible from the stock profile dating January 2011 to August 2012, MCB has an upper
hand on the stock prices as compared to HBL stock prices. The volumes, of KSE 100 Index,
as a result have also been higher as compared to HBL volumes in the stock market. The
average weekly returns for MCB are also comparatively higher as compared to HBL as the
volume and the number of stocks traded every week is higher for MCB. The weekly return
ratio for MCB is -0.14% as compared to HBLs ratio of -0.03%. Compared to the weekly
return ratio of the KSE 100 Index, which is -0.28%, the returns from MCB account for more
profit for the investors as compared to HBL investors.

We can see that from January 2011 to July 2011, the share prices for MCB range between 200
and 230 whereas for HBL, the share prices reach a maximum level of 127. Compared to the
KSE 100 Index points, the trade that has taken place for both the companies have been
relatively lower but taking a more in-depth analysis of the volumes traded for both the
companies, it goes to show that MCB has been more successful in doing business in the stock
market as compared to HBL. From July 2011 onwards, the share prices for both the
companies have steadily declined. This is due to the prevailing political instability in the
country. Even as a result of this instability, MCB manages to keep its share prices
comparatively higher as compared to share prices from HBL. The standard deviation for
weekly share prices for MCB has also been greater than HBL (4.11% and 3.72%
respectively). This goes to show that share returns for MCB have been more volatile as they
have been deviating more from the average expected rate of return. For HBL, the stock prices
have been deviating less so the returns from the expected rate of return so this shows that
HBL has more of stable blue chip stocks.

For HBL, we can also see that the calculated Beta value is lower than 1 which shows that the
stock prices for HBL are moving inversely to the market conditions. This tells us that the
volatility of HBL stocks, keeping the Beta value in mind, is lower as compared to that of the
stock market. Since HBL has a Beta value of 0.866, this means that it is 13.4% less volatile
than the stock market. Similarly for MCB, the Beta value is greater than 1 which shows that
the stock prices for MCB are more volatile as compared to the stock market. The Beta value
for MCB is 1.181 which shows that the stock values for MCB are 18.1% more volatile as
compared to the stock market.

Thus it can be satisfactorily concluded that investing in MCB stocks would be a more
profitable decision as compared to the stocks offered by HBL. Although the deviation of
stock prices is greater in MCB than compared to HBL, the risk is worth taking.