National Investment Trust (NIT) earned a net profit of Rs 149 million and Rs 142 million in respect of LOC-Fund and Non-LOC Fund. This was stated by Chairman and MD in a press release issued here on Monday after the Board of Directors approved the accounts for the first quarter ended on 30.09.2008.
The statement said that the profits translate into an earning per unit of Rs 0.20 for LOC Fund and Rs 0.15 for Non-LOC Fund respectively for the quarter ended on 30th September 2008 although the stock market has witnessed unprecedented bearish sentiments during the period.
Net Asset Value of NIT unit for LOC Fund declined by 28.2 percent from Rs 45.73 as on June 30, 2008 (Ex-Dividend) to Rs 32.85 as on 30.09.08 and Net Asset Value of NIT Unit for Non-LOC Fund declined by 27.3 percent from Rs 46.38 (Ex-Dividend) to Rs 33.72. During the same period KSE-100 index dropped by 25.3 percent. Thus the NIT - LOC Fund underperformed by 2.9 percent and Non-LOC Fund underperformed by 2.0 percent to their benchmark of KSE-100 Index.
The reason for this under performance is extraordinary circumstances in which certain sectors have not performed primarily Oil & Gas and Banking Sector. NIT could not book significant capital gains as in such circumstances NIT traditionally refrained from sale of portfolio in the market rather NIT made an investment to the tune of Rs 1.3 billion besides investments made on behalf of NIT - Equity Market Opportunity Fund.
Referring to the results of 1st quarter 2008, the Chairman said that NIT has earned a dividend income of Rs 184 million for LOC Fund and Rs 237 million for Non-LOC Fund during the 1st quarter under review.
This decline is due to the fact that declaration of dividend by certain companies was late which would be accounted for in the next quarter. NIT has realised capital gains of Rs 29 million and Rs 28 million relating to LOC Fund and Non-LOC Fund respectively against consolidated gains of Rs 227 million in the comparable period of last year.
Sale of NIT units (excluding CIPs) stood at Rs 2,414 million in respect of Non-LOC Funds. Gross Sale of NIT units (including CIPs) for Non-LOC Fund was recorded at Rs 4,445 million against redemption of Rs 694 million during the same period under review.-PR