Gulf Investment Fund Continues Strong Performance, Outlook Positive

(Alliance News) - Gulf Investment Fund PLC on Thursday said it outperformed its benchmark in the ...

Alliance News 18 July, 2019 | 1:56PM
Email Form

(Alliance News) - Gulf Investment Fund PLC on Thursday said it outperformed its benchmark in the three months to June-end.

GIF's net asset value in the three months period climbed 4.1%, versus 1.0% rise in S&P GCC Index. In the six months to June, GIF's net asset value rose 17% compared to the benchmark's 9.8%.

"The stand-off between the US and Iran hardened after Iran shot down a US drone. The event was the first direct Iranian-claimed attack on US military assets. This was the latest in an escalating series of incidents in the Gulf since mid-May, including suspected attacks on six tankers, and has prompted international concern that the stand-off could escalate into an open confrontation," said the investment fund.

"Regional markets tracked by the S&P GCC Composite index remained volatile during the quarter."

"While the S&P GCC index was up 1.0%, individual markets were mixed. Qatar, Kuwait, Dubai and Bahrain rose while Saudi Arabia remained flat and Abu Dhabi and Oman fell," GIF continued.

"Oil prices were down, losing about 2.7% as trade tensions dampened the demand outlook."

Looking ahead, citing the International Monetary Fund, GIF said GDP growth in the Gulf region is set to be 2.1% in 2019, accelerating slightly from 2.0% in 2018.

"With large investments expected over the next few years, we expect to see rising investment opportunities in sectors such as banking, infrastructure and industrials. The key risk remains the direction of oil prices, which if they drop further, will start to limit spending by governments in the region," it said.

"The investment adviser remains positive on growth in the region, led by the planned infrastructure projects and the momentum of reforms across nations."

GIF's biggest investments are Emirates NBD, which makes up just under 10% of its net asset value, then Qatar Gas Transport at 8.4%, Commercial Bank of Qatar at 4.7%, and then Qatar International Islamic Bank and Gulf International Services at 4.0% each.

In 2018, in price terms, GIF was the fourth best performing investment company on the London Stock Exchange, and also the fourth best in terms of net asset value.

Shares were flat on Thursday afternoon at a price of USD1.20 each.

By George Collard; georgecollard@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

Email Form
Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Gulf Investment Fund Ord 1.22 USD 0.41 -
About Author Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.