KARACHI, July 23: The National Investment Trust (NIT) would raise Rs20 billion for the ‘Equity Market Opportunity Fund’ (EMOF) and start purchase of shares from the market from Friday morning, NIT Chairman and Managing Director Tariq Iqbal Khan told Dawn in reply to queries on Wednesday.

The NIT, country’s largest mutual fund, was entrusted with the task to spearhead in the setting up of the EMOF by Finance Minister Naveed Qamar at a meeting with the stockbrokers and members on Tuesday.

Following 16 straights sessions of a bear rampage at the equity market which saw the KSE-100 index dip by 5,200 points between April and July, reflecting a huge loss of 36 per cent in stock prices, investors had taken to a violent protest, prodding the regulators to join in an effort to arrest the decline.

A visit by the governor of State Bank of Pakistan on Monday was followed by that of the finance minister, the latter announcing the much-awaited government support to the bourse, by setting up a Rs20 billion equity market stabilisation fund.The development resulted in a quick recovery of the market on Tuesday and Wednesday.

The NIT chairman said that the commitment of funds by participants had been facilitated by preparing an entirely different model, which provided them the comfort that they required.

He stated that the draft of the document, which would set the pre-determined rules, was ready and necessary approvals and agreements would be sought and concluded by the opening of market on Friday.

Mr. Khan said that he was positive of the commitment of entire sum of Rs20 billion by the contributors since the new model sets their concerns at rest.

The NIT chairman dismissed the suggestion that the market lacked confidence, saying that the performance of the KSE on Tuesday, when 35 stocks had hit their ‘upper locks’ and a gathering volume in the last two days, reflected that investors wanted to seize the opportunity to pick up stocks at the current attractive valuations.