Value of giant Norwegian oil fund drops

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NORWAY'S sovereign wealth fund - filled by tax revenues from the nation's oil industry - has fallen in value since the end of the second quarter because of the slump in global stock markets, figures yesterday showed.

While the fund's value crept up by 0.3 per cent to 3.1 trillion Norwegian krona (344 billion) in the three months to 30 June, plunges in share prices have dragged it down to KNr2.9 trillion.

The slight rise in the second quarter was caused by rising bond prices outweighing a slump in stocks.

Nestle, Sanofi and Roche were the fund's most-profitable investments in the second quarter, while the worst performers were HSBC, JPMorgan Chase and Vestas.

Some 60.5 per cent of the fund - run by Norway's central bank - was held in stocks at the end of the second quarter, down from 61.3 per cent.