Norway's Wealth Fund Surges as Financial Stocks Soar

Norway's $2 trillion sovereign wealth fund reported a profit of 698 billion crowns ($68.28 billion) in the first half of the year, owing to strong financial stock returns. The fund, a major global investor, is also ceasing contracts related to Israeli investments due to regional tensions.

Norway's sovereign wealth fund, the largest in the world, announced a significant profit of 698 billion Norwegian crowns ($68.28 billion) for the first half of the year. The impressive gain is largely attributed to robust stock market performance in the financial sector, according to a statement released on Tuesday.

The January to June return for the fund stood at 5.7%, slightly underperforming its benchmark by 0.05 percentage points. Fund CEO Nicolai Tangen highlighted the favorable stock market conditions as a driving factor behind these results.

As one of the biggest investors globally, the fund, which captures revenues from Norway's oil and gas production, owns about 1.5% of all listed stocks worldwide. Recently, it decided to end contracts with external asset managers overseeing its Israeli investments amid political unrest in Gaza and the West Bank.

(With inputs from agencies.)