(Alliance News) - Scottish Oriental Smaller Cos Trust PLC on Tuesday said that the recovery sentiment in Asia is uneven, with India growing soundly but China tepidly, as it reported an increase in net asset value.
The investment firm focused on smaller Asian listed companies said net asset value per share edged up 6.5% to 1,549.68 pence each as at February 29, from 1,455.58p at August 31.
NAV per share total return for the six months to February 29 was 8.3%, outperforming the MSCI AC Asia ex Japan Small cap index, which returned 6.8%.
Vinay Agarwall, lead manager, and Sreevardhan Agarwal, co-manager, said: "Over the last four years, Asian economies have faced several headwinds including the impact of the Covid-19 pandemic as well as the rise in inflation and interest rates. The recovery in economic sentiment is uneven across the region. Countries such as India and Indonesia have recovered strongly since the initial impact of the pandemic. However, the recovery in China and Hong Kong has been subdued, due to extended lockdowns as well as geopolitical tensions, regulatory interventions across a number of industries and a long overdue property market downturn."
However, they added excitement about the portfolio's prospects, citing the "solid" balance sheet and strong growth potential and attractive valuations.
Scottish Oriental shares were 0.7% higher at 1,308.50 pence each on Tuesday afternoon in London.
By Tom Budszus, Alliance News slot editor
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