Global Logistic Properties is 1.9% lower at $2.54, extending Thursday’s 4.8% fall after it said it planned to buy Brazilian assets via a JV, with funding via a share placement.
“It’s initial resistance to the placement,” an analyst says, adding “the Brazil acquisition looks mildly positive, but it might divert its attention from the core growth in China and Japan. Some Asia-focused investors may not like investments outside Asia.” He adds, “it was trading at a big premium to its NTA all along, so maybe there’s some profit-taking.”
Recent JPY weakness vs the USD could also be a factor, he says; “they do have a big exposure there.” Orderbook quotes suggest the stock may not retest its intraday low at $2.42, its lowest since mid-September.
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