Friday 29 Mar 2024
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SINGAPORE (Feb 26): Temasek Holdings has suffered paper losses on its investment in the energy and banking sectors, the Straits Times reported on Friday.

Temasek’s energy and bank holdings, including in Standard Chartered Bank, MEG Energy Corp and Repsol, make up 5% of its portfolio, the report says.

Standard Chartered Bank reported its first ever loss since 1989 on Wednesday. Temasek reported last year it had an 18% stake in the bank whose market value has shrunk by 51% since March 31.

Temasek has a stake of about 5% in Canadian oils sands company MEG Energy whose market capitalisation has shrunk by 79% over the same period.

Spanish oil major Repsol, in which Temasek has about 7%, saw its market capitalization fall to 13 billion euro from 23.83 billion euro on March 31.

The report quoted CIMB Private Bank economist Song Seng Wun as saying that Temasek’s paper losses are hardly surprising given the market conditions.

Even Norway’s sovereign wealth fund suffered its biggest quarterly loss in four years in the third quarter of 2015, he says.

The paper losses “serve more as a reminder of the importance of managing the portfolio well for the longer run”, says Song.

Temasek says it has no further comments to add to the report.

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