23rd Apr 2015 17:32
LONDON (Alliance News) - Blackrock Greater Europe Investment Trust PLC Thursday said its undiluted net asset value per share returned 8.1% in the six months ended February 28, while the FTSE World Europe ex UK Index returned 6.0%.
The share price returned 5.8% as the discount at which it traded to net asset value widened.
Since the end of February, the trust's undiluted NAV has increased by 5.4% compared with a rise in the FTSE World Europe ex UK Index of 3.9%. In the same period, the company's shares have traded in the range of a discount of 1.4% and 6.8% on an undiluted cum income basis and were trading at a discount of 5.4% as at close of business on April 22, according to the trust.
"The Eurozone region has started 2015 with a number of reasons to be positive. In addition to QE, recent Euro weakness, particularly relative to the US dollar, has improved the competitiveness of many European exporting companies. Furthermore, the recent sharp drop in the oil price will reduce input costs for many companies and should also boost consumer spending. Corporate earnings for Eurozone businesses still remain at very depressed levels compared with their US counterparts and closing the gap could drive the next phase of share price gains," Chairman Carol Ferguson said.
"Given the above, current valuation levels suggest that European equities remain attractive and that opportunities continue to be available in companies with good pricing power and encouraging earnings prospects. However, although prospects are brighter, the likelihood of a rise in US interest rates later in the year and ongoing political uncertainty in Greece and Ukraine, could yet create volatility in European stock markets<" Ferguson said.
By Samuel Agini; [email protected]; @samuelagini
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BlackRock Greater Europe Investment Trust