20000727

NIT registers 56 pc rise in unit price

KARACHI: National Investment Trust (NIT) has given a substantial return of 56 percent to the unit holders during the last financial year, rising the net asset value of NIT unit from Rs 7.17 to Rs 10.66.

According to NIT sources, if the interim dividend paid by NIT to the unit holders are excluded from this rise, it goes to 49 percent as compared to 43 percent rise in the KSE All-Share Index and 38 percent rise in the KSE-100 index. NIT's edge of 18 percent over the stock market translates to Rs 2.4 billion of value addition due to management efforts and structure of the portfolio, a spokesman of NIT claimed here on Monday.

NIT is predominantly invested in sectors like Fuel and Energy (40 percent) and Chemical and Pharma (12 percent) which combined constituted 52 percent of the total portfolio and are the most lucrative sectors in terms of real growth. With 10 percent in Textiles, 11 percent in Financial Sector and 4 percent each in Synthetics and Cement and Auto and Engineering, NIT is likely to get benefit from the gains in just about every sector.

Funds under management grew from Rs 13.5 billion to Rs 18.5 billion during the last fiscal year. The management of NIT created Rs 322 million in value by selling shares above their prevailing market prices during the fiscal year.

Sources at NIT have indicated that after the approval of accounts of the company by the Board scheduled to meet next month, a dividend will also be announced. It is worth mentioning that NIT announced an interim dividend of paisa 55 per unit on February 15 this year.-APP