Resources to the rescue as property stocks tumble: Economy roundup

A firming in resource company share prices has helped limit the damage to Australian sharemarkets this morning, despite further big falls by property stocks.

A firming in resource company share prices has helped limit the damage to Australian sharemarkets this morning, despite further big falls by property stocks.

Monday’s announcement of a $170 million full year income downgrade by listed property trust GPT Group sent its shares tumbling, a contagion that quickly spread across listed property companies.

The share price pain for property companies has continued today, with GPT down 9.76%, Mirvac down 5.76%, Valad Property Group down 4.8%, and developer Stockland down 4.06% by midday.

Resources stocks have largely returned to the positive side of the ledger however, with BHP Billiton, Bluescope and Rio Tinto all posting gains, although others such as Fortescue and Woodside remained lower.

The result? At 12.20pm the S&P/ASX200 is down 0.2% on yesterday’s close to 4991.8. At the same time the Australian dollar is trading at US95.44c, down 0.15% this morning.