MANAMA: Sico, a leading regional asset manager, broker, market maker and investment bank yesterday announced that the Bahrain Liquidity Fund (BLF), now in its fourth year, has continued to make a major impact on the average daily traded volume (ADTV) of the Bahrain Bourse.

Sico is licensed as a conventional wholesale bank by the Central Bank of Bahrain.

The Bahrain Bourse ADTV has reached BD1.121 million in 2019 increasing by four folds since inception in 2016.

BLF transactions in 2019 represented 31.25 per cent of the total ADTV on the bourse compared with the 22pc recorded in 2018.

Commenting on the track record and performance of the fund, Fadhel Makhlooq, Sico’s chief capital markets officer, said, “The fund had a positive impact on the BHB despite its reduced size, resulting from paying back in cash 10pc of the fund’s size to its shareholders, in addition to paying out all dividends received during 2019.

“The increase in the participation rate over last year is a clear manifestation of the fund’s role as a liquidity provider.”

In terms of returns, the BLF has generated an annual return on capital of 8.19pc representing a net asset value of BD39.5m. This return includes cash dividends distributed to fund unitholders.

“We are extremely proud of these results which are a reflection of Sico’s capabilities as a market maker, a concept that we pioneered two decades ago.”

“Since its launch in 2016, the BLF has had a huge impact on investor sentiment, market volumes, valuations and performance.”

“The 20.4pc performance of the Bahrain All Share Index during 2019 was the second best in the GCC region and a clear indication of investors’ confidence in the Bahraini market. Looking ahead, we believe the market will enjoy a positive year during 2020 supported by fundamentals and generous yields,” added Mr Makhlooq.

© Copyright 2019 www.gdnonline.com

Copyright 2019 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.