(Alliance News) - Aberdeen New Thai Investment Trust PLC on Monday hiked its dividend and reported a rise in net assets during the first half of its financial year.
In the six months to August 31, net assets rose by 13% to GBP119.7 million from GBP106.4 million from the end of February. Per share, net asset value climbed at the same rate to 723.37 pence from 641.45p.
The stock was untraded at 591.00p apiece in London on Monday morning.
Aberdeen New Thai achieved a net asset value return of 15%, in line with the sterling-adjusted Stock Exchange of Thailand benchmark Index.
The trust boosted its interim dividend by 14% year-on-year to 8.00p per share from 7.00p.
Aberdeen New Thai said: "Thai equities and our portfolio enjoyed a positive half year to the end of August 2019 with particular gains for sterling investors. The manager's stock selection in financials and food, together with gearing within the portfolio, added to relative performance."
Investee Osotspa Co Ltd, a beverage producer, experienced "robust" sales growth during the period, Aberdeen New Thai said. Soft drinks maker Haad Thip Public Co Ltd also boosted portfolio performance, with strong trading assisted by warmer weather.
Chair Nicholas Smith said: "Looking ahead, the escalation of US-China trade tensions is likely to cloud the outlook for Thai markets. The simmering trade war will also compound worries about the economy, with the central bank recently lowering its growth forecasts. This could dampen corporate earnings outlooks and compel companies to hold back on capital spending or shareholder returns.
"In addition, tourism, one of Thailand's twin economic pillars, has suffered from reduced visitor numbers. Given that a third of all foreign travellers hail from China, a sustained downturn on the mainland will impact Thailand's gross domestic product growth."
By Eric Cunha; ericcunha@alliancenews.com
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