Volatile stock market in January – the fund’s NAV dropped -0.96 percent
The stock markets in the region is volatile as investors continues to try to assess the politically instable situation in Egypt and its impact on the entire region including the GCC-region. Companies with exposure to the Egyptian market will continue to be under a certain selling pressure. However, for investors who looks to the country’s long term fundamentals and opportunities and look beyond the current political turmoil, there will be good opportunities to make sound investments.
The turnover on the different stock exchanges have been relatively modest as investors so far have been cautious when trying to evaluate the political situation in the country. Most likely, the markets will remain restrained as the situation is relatively unpredictable.
The Oil price reached its highest level in two years on January 31 (100 USD) because of the Egyptian situation. There is a fairly strong correlation between Egyptian stock markets and stock markets in the GCC region. Therefore, we will take this into consideration and sell parts of our portfolio while following the developments in the region carefully.