Not at­tack­ing this one

Finweek English Edition - - INVESTMENT - SI­MON BROWN

SO AT­TACQ has listed with the ini­tial pub­lic of­fer­ing (IPO) price be­ing 1450c (slightly be­low the ini­tially planned 1500c) and the stocks opened on the first day at 1700c be­fore drift­ing down to 1650c. A de­cent enough re­turn for one day if you got in the IPO and sold, but where to now?

The prop­erty sec­tor is cur­rently not pre­form­ing as bond yields take the shine off prop­erty stock yields, and with the list­ing boom of the last cou­ple of years and the price boom that we’ve seen I can’t see sig­nif­i­cant up­side in the sec­tor gen­er­ally or in At­tacq specif­i­cally. That said, while we may see some price weak­ness, I would not ex­pect a sell-off of any note but to­tal re­turns (price move plus any dis­tri­bu­tions) over the next 12 months are likely to be high sin­gledigit at best, which is nice and ahead of in­fla­tion but hardly set­ting any records. So if you cur­rently hold At­tacq then con­tin­u­ing to do so will of­fer some re­turn, but I would not be buy­ing prop­erty right now as there are bet­ter re­turns to be had in the mar­ket.

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