Hum Securities presents Pakistan's premier Islamic financial brokerage services. They offer Shariah-compliant professional brokerage services through their department, Hum Islamic Brokerage Services (HIBS). HIBS aims to provide profitable and Shariah-compliant investment options like stocks, Islamic investment pools, and expert advisory services. Stocks provide a liquid and interest-free investment option when screened according to strict Shariah principles. The KMI-30 index tracks the performance of 30 Shariah-compliant stocks and serves as a benchmark for Islamic investments in Pakistan. HIBS products include brokerage services conducted according to Islamic rules, zero-commission investment pools, and profit/loss sharing investment pools.

1. Hum Securities present Pakistan`s 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 Mission:
“Working Together To Achieve Financial Goal”

3. Financial crisis of 2007–2010
•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'.

4. Impact on Pakistan’s 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.

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.

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.

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.
•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.
•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
•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.

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 country’s 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.

10. Islamic Industry Pyramid

11. Islamic Industry Pyramid

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:

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

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.

15. SHARIAH SCREENING CRITERIA
1.Business of the Investee Company
2.Debt to Total Assets
Should be less than or equal to 40 %
3.Non-compliant Investments to Total Assets
non compliant investments to total assets should be less than 33%.
4.Non-complaint Income to Total revenue
non compliant income to total revenue should be less than 5%. Total revenue
5.Illiquid Assets to Total Assets
The ratio of illiquid assets to total assets should be at least 20%. Illiquid asset
6.Net Liquid Assets to Share Price
The market price per share should be greater than the net liquid assets per share
calculated as: (Total Assets – Illiquid Assets – Total Liabilities) divided by
number of shares.

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.

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

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

19. Performance Evaluation of KMI from past 2 Years

20. Difference Between Conventional and Islamic Brokerage System
Islamic 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
Conventional Brokerage
Intraday trading is allowed
Margin finance is allowed
Cash settled in future is
allowed
Investment in banks,
insurance companies, etc. is
allowed

21. OUR PRODUCTS
Brokerage :
•Dedicated dealer conduct transaction on the behalf oc
client with a restriction to follow complete sharia’h
scripts with also islamic rules and regulations.
Zero Commision Investmnet Pool:
•No commission will be charged,
•consultancy fee will be cahrged @ 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 @ 20:80

22. THANK YOU!