(Alliance News) - Majedie Investments PLC on Wednesday reported a fall in net asset value for the first-half which started "strongly" but later succumbed to the Covid-19 pandemic.
Net asset value at March 31 was 29% lower at 221.5 pence each from 313.1p in the year prior. It fell by just under a quarter from 292.3p.
The stock was 1.9% higher at 218.00p each in London on Wednesday morning.
Majedie reported a total return of negative 22%, mirroring the performance of FTSE All-Share Index, but lagging below the MSCI All Country World Index which lost 15%.
Majedie explained: "The year started with a positive outlook for UK markets with a new, stable government and an end to the Brexit chaos in sight. The Covid-19 pandemic and the subsequent lockdowns of economies in February and March caused the global economy a massive demand shock and stock markets fell heavily. Governments around the world have intervened on an unprecedented scale, and stock markets have recovered from the lows in March, but are likely to remain volatile."
The investment trust held its interim dividend at 4.4p per share.
"The UK market was particularly hard hit for two reasons; its heavy exposure to banks which are now discouraged from paying dividends and secondly the collapse in the oil price as Saudi Arabia and Russia increased supply just as demand was falling heavily. Investors reacted to the chaos by buying the large technology stocks in the US, thereby ensuring the UK market underperformed its global peers," Majedie added.
"Markets have recovered some composure, but the shape of any recovery is difficult to judge".
By Eric Cunha; ericcunha@alliancenews.com
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Majedie Inv. (MAJE)