Figures released on investment fund Lebanon Holdings show that the fund’s net asset value (NAV) per share reached $7.47 as of November 30, 2000 compared to $7.76 on August 31st and $7.94 at year-end 1999.
The information memorandum issued by the fund’s manager Blakeney Management Ltd. noted that listed bank shares show good value at currently low valuations despite the slowdown of the sector’s earnings this year. It added that a positive change in sentiment would reflect favorably on the valuations of bank stocks despite single digit earnings growth expected next year. It expected the profitability levels of the fund’s investment in Societe Nationale d’Assurance and Societe des Grands Hotels du Liban to
improve in 2001.
Blakeney said that the fund is still only 75 percent invested, as the flow of transactions in Lebanon has been slow due to the economic slowdown of the past few years. But the fund is still actively looking for investment opportunities in Lebanon and expects to participate in a small number of high quality transactions next year. It noted that Lebanon Holding’s NAV has declined by 6 percent so far this year compared to an 18 percent decline in the local stock market and 35 percent in emerging markets, reflecting the relative strength of the Lebanese market in a generally difficult period for emerging markets. — ( Lebanon Invest )
