Norway's Wealth Fund Hits $68 Billion Profit Amid Stock Market Surge

Norway's sovereign wealth fund, valued at $2 trillion and the largest globally, achieved a profit of $68.28 billion in H1, driven by financial stocks. The fund's overall return was slightly below its benchmark. It invests in stocks, bonds, real estate, and renewable energy, announcing a partial divestment from Israeli investments.

Norway's $2 trillion sovereign wealth fund, the largest in the world, recorded a profit of 698 billion Norwegian crowns ($68.28 billion) for the first half of this year. This impressive profit was fueled by substantial returns from financial industry stocks, as announced on Tuesday.

The fund saw a 5.7% return for the January-June period, slightly trailing its benchmark index by 0.05 percentage points. As an investment arm of the state's oil and gas revenues, it holds average ownership in 1.5% of all listed stocks globally, while also investing in bonds, real estate, and renewable energy.

In specific sectors, the equity investments returned 6.7%, fixed-income 3.3%, unlisted real estate 4.0%, and renewable energy infrastructure 9.4%. Significantly, Norges Bank Investment Management announced it is ending ties with external asset managers of Israeli investments, and partial divestment in response to tensions in Gaza and the West Bank, with further details expected on Tuesday.

(With inputs from agencies.)