There was further gloom for the property sector yesterday after JP Morgan Cazenove predicted further share price weakness. The Daily Telegraph. Financial Times
Lowered her rating on the sector to ‘underweight’ from ‘neutral’, analyst Miranda Cockburn said: ’We see the potential for significant net asset value downgrades over the next six months as the severity of the underlying property market correction is captured in NAVs.’
The FTSE Real Estate sector has fallen 30% so far this year, and Cazenove warned clients yesterday it could fall a further 5% to 10%.
Cockburn added: ‘We are also waiting for the September 2007 results, after which we expect to make further market and company downgrades.’