South African Real Estate Stocks Plummet: Johannesburg Mover
Growthpoint Properties Ltd. (GRT) and Redefine Properties Ltd., fell the most in several years in Johannesburg as foreign investors extended the biggest selloff in South African bonds since 2011 to property stocks.
Growthpoint slumped as much as 8.4 percent, the steepest intraday decline since December 2008, and traded 6.6 percent lower at 24.1 rand by 3:27 p.m. local time. About 12.4 million shares traded, more than twice the three-month daily average.
South African bonds are posting the world’s worst returns this month while the rand’s slide to a four-year low against the dollar yesterday as President Jacob Zuma failed to reassure investors that the government is doing enough to stop labor unrest that is curbing growth in the Africa’s biggest economy.
Growthpoint’s “stock is very liquid and is the first in line to take a hit in the selloff by foreigners,” said Geoff Noble, a portfolio manager at Grindrod Asset Management (Pty) Ltd., in a phone interview from Durban. “Growthpoint, the poster boy of South African property stocks, has the biggest share of foreign investors.”
Zuma yesterday dispatched his deputy and three other cabinet members to intervene in the feud between the National Union of Mineworkers and the Association of Mineworkers and Construction Union.
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