Stockland shares hit near two year highs despite profit downgrade guidance

Stockland’s share price rose to near two-year highs despite yesterday's profit downgrade to its 2013 full-year guidance.

The worse than expected half-year performance was met by high trading volumes which saw the stock price pushed up 5.2% to $3.66 by market close.

It followed a $306 million hit to the value of Stockland’s residential portfolio as well as a 26% slide in its underlying profit.

The group's profit outlook had been known to be problematic as in November the group informed the market its earnings would be 10% to 15% below the 2012 full-year result.

The new chief executive, Mark Steinert yesterday gave the sixth revision in a year, according to research from analysts at CLSA.

Adam Fairfax at JP Morgan, said Wednesday’s trading volume of 40 million shares was roughly four times higher than the recent average and attributed the sudden uplift to the break in the “buyer’s strike.”