Employees Old Age Benefit Institution (EOBI) devised new ways to boost its earnings in the coming years, which has recorded a tremendous growth of 35 percent in six months ended December 2003 compared with same period a year ago.
The sources are indicating that EOBI is planning to further re-focus its investment strategy.
On the portfolio side, it wants to move ahead with a more structured investment portfolio whereas it wants to assign almost market equivalent weights to all the heavyweight stocks at the Karachi Stock Exchange.
These stocks will be held in the long run with the sole focus on the dividend yields.
Owing to pressures from lower interest rates, the fund is also planning to invest into various projects.
The sources are indicating that these projects may include an inter-city bus terminal in Punjab, establishment of CNG stations using the facilities of the existing oil marketing companies, acquiring strategic stakes in the private & public sector corporations via stock investing and making investments in the land.
Some of the analysts are indicating that EOBI is one of the most efficient public sector institutions in terms of handling of investments. It has a state-of-the-art infrastructure to handle the stock market investments.
Moreover, its team is one of the best investment management teams in the city to manage other diversified interests of the institution.
The total investment income from July to December 2003 was Rs 5.862 billion as against Rs 4.346 billion for the same period a year ago, showing an increase of Rs 1.516 billion, rising by 34.88 percent.
Investment income on equity from July to December 2003 was Rs 851 million, including dividend income and realised/unrealised capital gains.
This does not include capital receivable on sale of OGDC sale shares, which is approximately Rs 150 million.
Thus the total income on equity after inclusion of capital gain receivable on OGDC shares is Rs 1.001 billion.
The EOBI's total investment portfolio as on December 31, 2003 was Rs 74.335 billion as against Rs 61.528 billion of the corresponding period a year earlier, showing an increase of Rs 12.807 billion or 20.81 percent.
The bulk of the institution's investment has been made in government securities amounting to Rs 68.585 billion in government securities, stock market Rs 1.491 billion, Rs 429 million in terms finance certificate, certificate of deposits and investments Rs 410 million and bank accounts Rs 3.420 billion.
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