Recovering Resilient, Fortress lose ground
Allegations of insider trading and share price manipulation earlier in 2018 led to the near collapse of both share prices
Property investors betting on a continued recovery in the share prices of embattled property plays Resilient and Fortress will no doubt be disappointed by the losses recorded by both on Wednesday. Fortress B slumped nearly 7% in early morning trade and ended the day 4% lower, while Resilient was down 2%. That has partially wiped out the gains recorded by both stocks since end-July. Allegations of insider trading and share price manipulation earlier in 2018 led to the near collapse of both share prices. Even though the market still awaits the outcome of the Financial Sector Conduct Authority’s probe into the allegations, investors seem in recent weeks to have regained their appetite for the two counters. Wednesday’s sell-off appears to have been triggered by a weaker than expected dividend growth guidance for the 2019 financial year given this week by the two companies at their results presentations. The lower dividend growth numbers reported by both companies relate primarily to the...