5th Nov 2019 14:30
(Alliance News) - BlackRock Smaller Companies Trust PLC on Tuesday said it beat its benchmark and registered a net asset value gain in the first half of its financial year.
Net asset value per share at August 31 stood at 1,481.39 pence per share, up 5.2% from 1,407.88p at the end of February.
The stock was trading 0.1% lower at 1,494.78p apiece in London on Tuesday afternoon.
The 5.2% surge beat a 1.3% decline in the Numis Smaller Companies plus AIM (excluding investment Companies) Index, BlackRock Smaller's benchmark.
The trust boosted its interim dividend by 6.7% to 12.80p per share from 12.00p last share.
The trust said: "The six months under review have been challenging for the UK equity market, which continues to underperform relative to other global indices. The uncertainties surrounding Brexit have had an impact on the UK economy, together with global concerns over elevated levels of geopolitical risk.
"An ongoing trade dispute between China and the US, a US Presidential impeachment battle and further tensions in the Middle East have all contributed to increased market uncertainty and volatility."
Looking ahead, BlackRock Smaller said rates cuts by the US Federal Reserve and the European Central Bank have mitigated risk of a global recession in 2019. It added that the outlook for the UK equity market is unclear however, due to ongoing Brexit negotiations and the upcoming general election.
By Eric Cunha; [email protected]
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