KARACHI, Nov 29: The Employees Old Age Benefit Institution (EOBI) has suffered a staggering loss of Rs7 billion due to depletion in the value of stocks held in its portfolio until June 30, figures obtained by Dawn reveal.

Analysts say the loss may have mounted by now due to the continuous slump in the stock market, which has dipped by 26 per cent since June --- from 12,289 points to the current ‘floor’ fixed by the Karachi Stock Exchange at the index level of 9,144 points.

Data revealed that EOBI carried 344 million shares on its portfolio at a total cost of Rs39.1 billion. The market value stood at Rs32.1 billion, representing a loss of Rs7 billion.

On the positive side, the institution had earned capital gain during the year amounting to Rs2.4 billion and received dividends in the sum of Rs1.2 billion.A glance at the EOBI share portfolio reveals that the institution has invested the biggest amount of Rs5.2 billion in 32 million shares of United Bank, followed by an investment of Rs4.4 billion in stocks numbering 10.9 million in Pakistan State Oil.

Those could be considered reasonably safe, compared to the third highest investment of Rs4.2 billion in 68.9 million shares of Bank of Punjab (BoP). The EOBI had acquired those shares at an average price of Rs 51.51. But the price of the BoP stock had sunk to Rs 24.78 currently, after the bank’s management disappeared following the detection of alleged large scale financial irregularities.

The EOBI is one of the four government-controlled institutions which would participate in raising Rs20 billion as stock market stabilisation fund to bail out the equity markets. Alongside NBP, SLIC, and NIT, the EOBI would contribute Rs 5 billion, the same as the three other organisations.

However, EOBI insiders told Dawn that the Institution managed to give Rs1.3 billion towards stock market stabilisation fund and the payment had been already made through bank.

Capital market analysts, giving a pessimistic view about the future of the market, said there is little possibility share prices would revive under current high interest rates.