(Alliance News) - BlackRock Energy & Resources Income Trust on Monday said it underperformed its reference index amid a mixed performance from the mining and energy industries.
The company said its net asset value per share at May 31 stood at 76.60 pence, versus 75.87p on November 30. Including dividends reinvested, this marked a rise of 3.6%.
Over the same period, the 50/50 reference index, which is an equal split of both the EMIX Global Mining Index and the MSCI World Energy Index, returned 4.3%. BlackRock Energy & Resources noted that it outperformed world markets during the period, as displayed by the FTSE All Share Index, which returned 2.6%.
The first half of 2019 saw markets recover following falls at the end of 2018, but returns from energy and resources stocks were "mixed", the company said. The mining sector performed well, while the energy sector was under pressure.
Mining sector outperformance was driven by credit stimulus in China which bolstered demand, combined with the Vale tailings dam collapse in Brazil which curbed supply.
"The energy and mining sectors will likely continue to be buffeted by the ever changing sentiment towards trade disputes and of course market sentiment towards the global growth environment. However when we take a step back from this short term noise, both sectors are supported by some of the most attractive company fundamentals in recent years," the company said.
Shares in the trust closed up 1.6% at 75.462 pence in London on Monday.
Blackrock Engy (BERI)