The fund’s NAV up by +3.12 percent in October

During the month of October we witnessed a broad recovery of equity markets due to new hopes of finding a solid solution to the European debt crisis. The local stock markets in the GCC region exhibited also strength and as a result LHV Persian Gulf Fund showed a positive return of +3.1% in October. During this period a number of our investments delivered their Q3 results and majority of them have been inline with market expectations.

Our best performing stocks in October were First Gulf Bank (UAE) and National Bank of Kuwait (KW) which rose 8.7% and 7.5% respectively. A statement from the Minister of Finance in Qatar confirmed the country´s very ambitious investment plans during the coming 5 to 6 years. During this period Qatar will invest in the non-hydrocarbon economy between $120 billion to $140 billion and about $30 billion to $40 billion in the energy sector. Qatar is funneling billions into roads and other infrastructure projects including a new airport and a port to spur economic growth as it reaps the benefits from higher oil and recovering gas prices. WTI oil price rose from $75/barrel in the beginning of October to over $90 by the end of October.

Mikael Kvibäck
Fund Manager