Australia's Soul Patts slumps after reallocating $637 mln to private markets

Washington H. Soul Pattinson and

28/09/2023 05:34

By Rishav Chatterjee
       Sept 28 (Reuters) - Shares of Australia's Washington H
Soul Pattinson and Co (WHSP) SOL.AX  emerged as one of the top
losers on the benchmark after the conglomerate reallocated about
A$1 billion ($637 million) in capital away from equity markets. 
    The company, also known as Soul Patts allocated the funds to
private equity and structured yield portfolio investments
unrelated to equity markets, underscoring the weak investor
interest in low-yielding stocks. 
    The 118-year old investment house also reallocated A$900
million to "alternative investments," ending the last fiscal
year with a private equity portfolio of A$1.2 billion.
    Shares of Washington H Soul fell as much as 8.2% to A$31.2
and were set for their worst day since March 2020 amid investor
concerns over the conglomerate's prospects. 
    Meanwhile the slump in Soul Patts triggered a sharp sell off
in local property developer and building materials maker
Brickworks  BKW.AX , in which the investment house holds an over
40% stake 
    "The sell-off today was mainly due to concerns about
Brickworks' profitability, given the lagging effects of interest
rates and consumers depleting their savings as construction
activity fell," said Jessica Amir, a market strategist at
Moomoo. 

    
($1 = 1.5701 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by Dhanya
Ann Thoppil)
 ((Rishav.Chatterjee@thomsonreuters.com;))