Listed property sector posts positive return despite sell-off

South Africa's listed property sector declined 3% last week after a sharp sell-off in the larger, more liquid companies.

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%

Source: Grindrod Asset Management

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

Article from: www.grindrod.co.za

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