The highest ever dividend by National Investment Trust

[Naveed Yaseen]

KARACHI (July 02 2008): National Investment Trust (NIT) has declared the highest ever dividend of Rs 6.50 per unit for its unit holders for the year ended on June 30, 2008. Muhammad Nawaz Tishna, Chairman and MD NIT announced this after the Board of Directors meeting, in which board approved the dividend for the year ended 30th June 2008.

Chairman said that the fiscal year particularly the last quarter has observed a great volatility mainly due to apprehensions about budget; tight monetary measures, and political situation in the country.

Despite these volatilities and huge decline in stock index, NIT remained adhered to its policy of not selling in the falling market, he said and added that instead, NIT has been generating activities in the market with the view to pick value stocks and at the same time to support the market through its operations. He sad that NIT always works on delivery based purchases and this policy has always yielded good results for the Trust.

"Net income earned by the trust amounted to 4.013 billion included realised capital gains of Rs 929 million in fiscal year 2008 as against income of Rs 19.812 billion in fiscal year 2007 included a capital gains of Rs 15.655 billion", he informed.

Chairman said that payment of record dividend Rs 6.50 per unit would involve a huge total payout of Rs 10.490 billion among its unit holders as against the distribution of Rs 10.034 billion to unit holders during 2006.

However, he informed that due to the unclear situation in the stock market earning per share has declined to 2.51 percent during the last fiscal year 2008. He made it clear that the difference between earning and divided is being filled through the NIT resaves and no borrowing has been acquire from the other resources.

He said that during the last fiscal year 2008 a decline of 10.8 percent witnessed in KSE-l00 index, however NIT has out performed the benchmark of KSE-100 Index by a good margin of 4.4 percent. Net Asset Value of NIT unit declined by 6.4 percent to (ex-divided) 52.58 on June 30, 2008 from Rs 56.18 as on June 30, 2007, he added.

Chairman claimed that graph of dividend payout by NIT has shown a consistent upward trend during the last eight years touching the peak of Rs 6.50 per unit in fiscal year 2008. NIT Funds has registered a growth of 9 percent in dividend income which increased to Rs 3.344 billion during the year ended on June, 30 2008 from Rs 3.082 billion in the previous year, he said.

He said that sale of NIT units has presented an impressive increase of 47.6 percent to Rs 21.748 billion the year ended on June 30, 2008 as against the sale of NIT units worth Rs 14.736 billion in fiscal year 2007, while during the year redemption worth Rs 23 022 million were lodged, which were met to the entire satisfaction of the unit holders.

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