Charter Hall Group shares (ASX: CHC) added 1.31% to A$18.50 today, a welcome relief for holders who have had a rather punishing seven weeks in the market. The CHC share price has fallen 23% over the period, yet has now stabilised a little, adding 5% from the new 52 week lows at A$17.60.
The move looks like some bargain hunting and short-term positioning repair in a stock that had been one of the most technically oversold on the ASX with an RSI of 21. After a period of heavy pressure, bulls look to be testing whether the selling has gone too far, looking to form a solid support base in the low A$18 price zone.
The fundamental backdrop remains solid, as Charter Hall’s FY26 result showed operating earnings up 26.8% to roughly A$488 million, operating earnings per security rising by the same margin, distributions lifted to about 50.7 cents per security, and net tangible assets per security increasing to A$5.95.
Since then, the group disclosed a A$1.2 billion east-coast property partnership with Tokyo Tatemono and UBS Asset Management, a deal flagged as supportive of further funds under management growth and fee income. The partnership is a useful reminder that institutional capital, both offshore and local, is still seeking Australian real estate exposure even as listed equity prices remain under pressure.
View From The Street
The analyst community remains bullish, with the average price target at A$23.43 suggesting a potential upside of 25% from today’s close. Citi has rated the stock a buy with a A$22 target, arguing Charter Hall is a beneficiary of continued institutional inflows into Australian real estate.
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Today’s gain moved the stock out of oversold territory to an RSI of 34.55, as the stretched downside move snaps back some. The broader trend, however, remains lower, with the stock below both its 50-day average of A$21.17 and its 200-day average of A$21.45, having recently made a death cross on the chart two weeks ago.
Is the worst of the selling over, or is this simply a technical pause into a broader phase of selling? For now, our best read is an oversold breather in a stock that may need yields to ease in order to build a more meaningful base of buyers.
