The funds NAV fell by 1.5 per cent in August

During the month of July we have seen local GCC markets trade sideline and in line with the rest of world stock markets. This is mainly due to US and European debt situation.

A number of our funds investments have delivered their Q2 results which has been in line with markets expectations and the results has been the best since the financial turmoil in 2008. However, this has not helped the markets in the GCC region. The reception has been rather mild. There are worries the American politicians can’t solve the debt situation which is clearly spilling over on the stock markets in this region. A non-solution would have large effects on the world economy.

One of our largest holding, Commercial Bank of Qatar, released its Q2 2011 results and the result showed very good quality. Y-o-Y a rise of the net profits with 25% and the bank showed improvements in net interest income, fee based income as well as lower provisioning of non-performing loans. However, the market reaction was rather mild.

Another large holding in the fund, Qatar National Bank, the gas-rich Arab state’s largest lender by assets, posted a 29% jump in quarterly profit buoyed by increased lending and customer deposits.

Mikael Kvibäck