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Investment holding group cautious over challenges

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Guoco

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GUOCO GROUP, which is involved in property investment, commodity broking and fund management services, has given a cautious outlook for the second half after reporting 26.9 per cent growth in first-half net profits.

'After rallying before the end of 2004, most markets appear to be fairly valued and vulnerable to profit taking,' the company said.

'Slower economic and earnings growth plus further rate hikes are expected to pose more challenges to global markets. Considering this combination of factors and the present outlook, caution should still prevail.'

Guoco saw net profit rise to $1.56 billion for the six months to December. Revenue gained 23 per cent to $5 billion.

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Earnings per share were $4.75. The company doubled its interim dividend to 80 cents.

Shareholders' funds increased to $31.4 billion.

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