Normal
GPT has been sliding now for a few weeks. I thought it may have something to do with the proposed acquisition of Australand assets but the share price actualy ran up after the acquisition proposal was announced. Also in this time GPT has raised a substantial amount of funds in the U.S that was raised on the basis of the Aud$ as the relevent currency, so GPT will not have exposure to any drop off of the Aud$ against the U.S$.On Monday several A-REIT's dropped in a flurry of selling in the half hour leading up to the close and even further in the auction. As you point out it had the appearance of fund managers reweighting their portfolios', exiting the likes of CFX, CPA, DXS, IOF, GPT and SGP (and others) however there was a good take up of WDC and I suspect the $ and volumes of the sales would closely match the take up buys of SCP, WDC and WRT (but not completely as I also expect some of the sales were profit taking).A large foreign investor winding down their positions at the current AUD$ level would also make sense. If GPT is going to be sold off as a large block, I would expect it to be at a discount to the present levels. Also, the impact of the sell down on the share price would most likely replicate what took place when SGP sold out of GPT. It may pay to have a bit of cash set aside in case this is what is happening. Apart from the oportunities created on Monday another block sell down of GPT would be worth jumping into (imo). Additionaly they have another div coming up in early May. [ATTACH]51482[/ATTACH]
GPT has been sliding now for a few weeks. I thought it may have something to do with the proposed acquisition of Australand assets but the share price actualy ran up after the acquisition proposal was announced. Also in this time GPT has raised a substantial amount of funds in the U.S that was raised on the basis of the Aud$ as the relevent currency, so GPT will not have exposure to any drop off of the Aud$ against the U.S$.
On Monday several A-REIT's dropped in a flurry of selling in the half hour leading up to the close and even further in the auction. As you point out it had the appearance of fund managers reweighting their portfolios', exiting the likes of CFX, CPA, DXS, IOF, GPT and SGP (and others) however there was a good take up of WDC and I suspect the $ and volumes of the sales would closely match the take up buys of SCP, WDC and WRT (but not completely as I also expect some of the sales were profit taking).
A large foreign investor winding down their positions at the current AUD$ level would also make sense. If GPT is going to be sold off as a large block, I would expect it to be at a discount to the present levels. Also, the impact of the sell down on the share price would most likely replicate what took place when SGP sold out of GPT. It may pay to have a bit of cash set aside in case this is what is happening. Apart from the oportunities created on Monday another block sell down of GPT would be worth jumping into (imo). Additionaly they have another div coming up in early May.
[ATTACH]51482[/ATTACH]
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