Stockland shares hit near two year highs despite profit downgrade guidance

Jonathan ChancellorFebruary 13, 2013

Stockland’s share price rose to near two-year highs despite yesterday's profit downgrade to its 2013 full-year guidance.

The worse than expected half-year performance was met by high trading volumes which saw the stock price pushed up 5.2% to $3.66 by market close.

It followed a $306 million hit to the value of Stockland’s residential portfolio as well as a 26% slide in its underlying profit.

The group's profit outlook had been known to be problematic as in November the group informed the market its earnings would be 10% to 15% below the 2012 full-year result.

The new chief executive, Mark?Steinert yesterday gave the sixth revision in a year, according to research from analysts at CLSA.

Adam Fairfax at JP Morgan, said Wednesday’s trading volume of 40 million shares was roughly four times higher than the recent average and attributed the sudden uplift to the break in the “buyer’s strike.” 

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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