NIT, the largest open-ended Mutual Fund of the country with more than 52,000 unit holders, has been able to manage its portfolio prudently and outperformed its benchmark of KSE-100 Index by a reasonable margin in both bullish and bearish scenarios, says a press release.
During the current Financial Year 2008, Karachi Stock Exchange has shown volatile behaviour due to some political and economic issues. Despite these volatilities, KSE-100 index set a new record and touched the ever-highest level of 15,676.34 on 18th April 2008, the release said.
In line with the rising trend in KSE-100 Index, Net Asset Value of NIT unit increased by 14.88 percent from Rs 56.18 as on June 30, 2007 to Rs 64.54 as on April 18, 2008 against an increase of 13.82 percent in KSE-100 index which rose from its level of 13,772.46 as on 30th June 2007 to 15,676.34 as on April 18, 2008. Thus, NIT outperformed the KSE 100 index by a margin of 1.06 percent.
Subsequent to the ever-highest KSE-100 index of 15,676.34, Stock Market witnessed a bearish trend and lost over 1,250 points in just 20 days. NIT once again outperformed the KSE-100 index by a good margin of 2.13 percent where Net Asset Value of NIT unit declined by 6.08 percent from Rs 64.54 as on April 18, 2008 to Rs 60.62 as on May 08, 2008 against a decline of 8.22 percent in KSE-100 Index during the same bearish period under review.
It would not be out of place to mention here that NIT has been following a policy on consistent basis to generate the activity in the Stock Market with a view to support the market through its operations, enhance the confidence of investors, work only on delivery based purchases and not to sell in falling market. This policy has not only yielded good results for the Trust but strengthened the overall stock trade and the capital market.-PR
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