30th Oct 2015 16:49
LONDON (Alliance News) - Global Resources Investment Trust PLC Friday reported a drop in net asset value in the first half of its financial year, which it said was due to the most difficult first half for resource markets since 2001, with particular pressure on the metal and oil markets.
Shares in Global Resources closed up 30.4% at 7.50 pence on Friday.
The investment trust said its NAV at August 31 was 39.5 pence, down 24% since February 28 and down 41% since a year earlier.
It said the first half proved to be the most difficult for the resource markets since the tail end of the 2000/01 commodity bear market, and that while commodity prices are for the most part higher in nominal terms than they were then, resource equities, especially the junior stocks, have experienced considerably greater falls in many cases.
Resource equities and the metal market during the summer months were hit by the economic slowdown in China, Global Resources said, while the oil market came under pressure as well.
However, gold companies, in which the fund has over 40% exposure to, are all making steady progress, Global Resources said.
"While some stability has returned to the mining market, the economic outlook remains clouded. The Fed guessing game on US interest rates continues, and the much anticipated increase will be determined by a combination of US and Chinese economic data in the coming months, with any increase being construed as positive," the company said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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