SA listed property sector declines 3% for the week ended 1 Feb
South Africa's listed property sector declined 3% last week after a sharp sell-off in the larger, more liquid companies, says Ian Anderson, chief investment officer at Grindrod Asset Management.
South Africa's listed property sector declined 3% last week after a sharp sell-off in the larger, more liquid companies, says Ian Anderson, chief investment officer at Grindrod Asset Management.
Capital Property Fund declined 6.6% after the fund reported distribution growth of 6.3% for the year ended 31 December 2012 and guided for growth of between 4% and 7% in 2013, despite a significant reduction in borrowing costs. Resilient was down 5.9%, Hyprop was down 4.9% and Growthpoint was down 3.5%.
As a result of last week's price action, the sector finished January up just 1%, after gaining as much as 4% in the first three weeks of the month. The market is now keenly awaiting results announcements, which will come thick and fast in February. Growthpoint, Hyprop and Resilient are all expected to report in February and are likely to set the tone for the rest of the quarter. Any major disappointments would extend last week's sell-off.
The Rand's strength at the end of last week might provide the sector with a little respite ahead of the results announcements, which will be the major focus for investors over the next three to four weeks.
Top 5 performers for the week ended 1 February 2013
|
Fortress B |
4.0% |
|
Hospitality B |
3.6% |
|
Ascension A |
2.4% |
|
SA Corporate |
2.1% |
|
Hospitality A |
1.2% |
Bottom 5 performers for the week ended 1 February 2013
|
Growthpoint |
-3.5% |
|
Hyprop |
-4.9% |
|
Premium |
-5.5% |
|
Resilient |
-5.9% |
|
Capital |
-6.6% |
Source: Grindrod Asset Management
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