Business | Markets
Libya eyes US, Europe equities after prices drop
Libya's $65 billion (Dh238 billion) sovereign wealth fund is looking to invest in European and US equities to diversify its portfolio after recent market declines, a member of the board said yesterday.
- Reuters
- Published: 23:55 October 23, 2008
Cairo: Libya's $65 billion (Dh238 billion) sovereign wealth fund is looking to invest in European and US equities to diversify its portfolio after recent market declines, a member of the board said yesterday.
"We want to diversify, number one in Europe, number two in the United States, and then in emerging market economies," said board member Farhat Bin Guidara, who is also governor of the Central Bank of Libya.
"We are going more towards [sectors] ... such as pharmaceuticals, telecoms, utilities and food manufacturers," he said on the sidelines of a conference here.
Europe's benchmark FTSEurofirst 300 index, which has lost 44 per cent year-to-date, tumbled to as low as 847.79 yesterday, within sight of a 5-year low touched two weeks ago.
"We are targeting [companies] less affected by the recession," Bin Guidara said.
The Libyan Investment Authority now has about 10 per cent of its assets in equities. "We might increase it to 12 or 13 per cent in less than six months," the governor said. That would translate into equity purchases of up to about $2 billion over the period.
The fund could also look at buying stock in banks, he added.
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