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Asia Dragon Trust PLC on Friday said it was optimistic about Asia’s outlook, emphasising India’s housing market, despite noting a soft performance in China. The investor in Asian equity markets said net asset value per share as at August 31 declined 18% to 421.26 pence from 513.32p a year prior. NAV total return for the financial year to August 31 deteriorated to negative 16.7% from negative 8.4% a year prior, and underperformed against its benchmark, the MSCI Asia ex Japan Index, which had a negative total return of 8.4% in financial 2023 and 7.1% in financial 2022. The company declared a final dividend of 6.60p per share, up 1.5% from 6.50p a year prior. Looking ahead, Asia Dragon touted a ‘rosier’ picture in India, hailing a recovery in urban consumer demand and a buoyant housing market, while Indonesia was spending resiliently. Further, the company highlighted anticipations that artificial intelligence will boost semiconductor manufacturing in Taiwan and South Korea. In China, however, the economic recovery was not as good as expected, with an increased savings rate not translating into increased spending. Further, Asia Dragon described the country’s property sector as weak. In July, abrdn New Dawn Investment Trust PLC announced that it had agreed heads of terms with Asia Dragon Trust PLC for a proposed combination with Asia Dragon. Under the merger agreement, abrdn New Dawn will be wound up, and shareholders will receive new shares in Asia Dragon. Asia Dragon Trust shares were 0.6% higher at 334.00 pence each on Friday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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