Australian Property Stocks Drag Down Sharemarket Amid Goodman Group Decline

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GOODMAN GROUP,PROPERTY STOCKS,AUSTRALIAN SHAREMARKET

Property stocks dragged down the Australian sharemarket on Wednesday following a significant decline in Goodman Group shares. The S&P/ASX 200 Index fell 0.4% to 8462.6, with eight out of eleven sectors in the red. The real estate sector was the worst performer, led by Goodman Group's drop of 2.9% after a $1.9 billion block trade repricing.

Property stocks weighed the Australian sharemarket on Wednesday after sector heavyweight Goodman Group dived on a repricing of block trade. The benchmark S&P/ASX 200 Index fell 0.4 per cent, or by 32.6 points to 8462.6 at the closing bell, with eight out of the 11 sectors in the red. That’s after the index rallied to a record-closing high on Tuesday and the S&P 500 notched its 55th record high this year. The worst-performing sector was real estate, led by Goodman Group.

Perpetual’s head of investment strategy Matt Sherwood said the GDP result was “very disappointing” and that it made for a challenging backdrop for equity investors. “The Australian sharemarket is very challenged on valuations and earnings, with today’s GDP numbers, it’s a very hard backdrop to seeing another major leg up to the market,” he said. Stocks in focus Pro Medicus rallied 1.8 per cent to $261.

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