Argo shares slip on half-year profit drop
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More news: Shares in Argo Investments are down nearly 0.3% to $9 in early trading after the listed investment company reported a 3.2% drop in half-year profit due to losses from option writing and trading activities, and lower income from other activities.
Despite the drop, it will pay a slightly higher interim dividend of 17 cents a share.
Argo half-year profit dips as trading losses weigh
The news: Argo Investments has reported a drop in half-year profit, weighed down by losses from option writing and trading activities, and lower income from other activities.
The numbers: The listed investment company recorded profit of $121.2 million for the six months to December, down 3.2% from a year ago.
Despite the drop, it will pay a slightly higher interim dividend of 17 cents a share.
The context: The investment manager said investment revenue rose 3.7% on the back of better-than-expected dividends from portfolio companies during the period, but this was largely offset by lower income from other activities and net losses from option writing and trading activities.
Argo expects the new US administration’s policies and pronouncements will drive major market movements.
The investment manager remains generally optimistic about the outlook of the domestic economy despite recent market fluctuations and said it is well-positioned to navigate the current investment landscape with cash available to capitalise on short term opportunities.
The source: ASX announcement
