This article is from the Australian Property Journal archive
IN A DAY where more than $60 billion was wiped off the Australian Securities Exchange, listed property developers were punished heavily by investors.
The biggest fall was minnow stock but sizeable residential land developer AVJennings saw its stock hammered falling 7.46%, closing the day at 62 cents – down 5 cents. AVJ reported one of its best results for more than a decade last week, but investors unloaded the stock today.
Other development stocks that were abandoned by investors include Villa Wood down 5.68% to $2.16, Desane closed 5.63% lower at 67 cents at and Cedar Woods -3.13% to $4.95.
On the upside recently listed Simonds Group worked against the market jumping 1.72% closing the day at $1.475 up 2.5 cents.
Land developer Peet fell a mere 0.44% to $1.12 whilst Finbar also finished the day at $1.12, falling 1.32%.
Meanwhile the major property companies with exposure to the residential sector were less impacted by the massive ASX wipeout including Lend Lease, which slumped 4.12% despite reporting a record $5.2 billion in residential presales, to finish the day at $13.72. Mirvac slipped 3.33% to $1.74 and Stockland fell 2.22% to $3.97.
Overall, the ASX 200 REIT indices fell 2.93% losing 36.22 points to close at 1,200.20. After opening at 1,236.40, the index traded as low as 1,198.00 before staging a small recovery.
The worst performing AREIT was Westfield Corporation, falling 3.58% to close at $9.150.
Abacus was the leader of the sector recording a marginal 0.69% fall to $2.87.
Australian Property Journal
