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ICP Mutual Funds' asset value registers 24-55pc growth in January

RECORDER REPORT

KARACHI: The net asset value of Investment Corporation of Pakistan (ICP) Mutual Funds recorded remarkable growth of 24 to 55 percent following an unprecedented increase in the performance of the Karachi Stock Exchange during January.

The military government took over the country on October 12, last year. During the initial period of military rule the stock market was unstable but Chief Executive Gen Pervez Musharraf's plan to put the economy back on track and revive investors confidence, stabilised the stock prices.

For last three months the Karachi Stock Exchange has shown a marked growth. The KSE-100 index touched two-year high level of 1800 mark with the volume making new history of over 390 million shares transaction in a single session.

The improvement in the share values of most of the investment scrips, blue chips and trading companies on the portfolio of Investment Corporation of Pakistan, boosted its net asset value (NAV).

The 26 Mutual Funds of ICP including State End Mutual Fund (SEMF) registered sharp improvement in the range of 24 percent to 55 percent. The 4th Mutual Fund improved by 48 percent to Rs 39.24 while 2nd Mutual Fund moved up by 24 percent to Rs 14.78. Other funds which recorded an increase of 40 percent or over are 6th Mutual Fund (42 percent), 11th Mutual Fund (41 percent), 13th Mutual Fund (49 percent), 18th Mutual Fund (46 percent), 19th and 20th Mutual Funds (41 percent each) and SEMF Mutual Fund (48 percent).

Analysts expect dividend from these mutual funds for the six months to improve from the last year's level of an average 12 percent. They foresee a minimum dividend of 15 percent and maximum around 80 percent from these mutual funds.

They pointed out that as the economic managers have pledged to privatise state-run companies through the stock exchanges, it will also help boost the share values and NAVs of the these mutual funds. Several companies like Sui Northern Gas, Sui Southern Gas, KESC and PSO are on the portfolio of these funds.