Deloitte WA Index declines for second month running

The total market capitalisation of Western Australian ASX-listed companies has fallen for the second month running, according to the Deloitte WA index.

The index plummeted 3.5 per cent in August, closing at $151 billion.

The full text of an announcement is pasted below

In the month of August, the total market capitalisation of Western Australian ASX-listed companies on the Deloitte WA Index decreased by 3.5 per cent, closing at $151 billion.

Deloitte Perth Office Managing Partner Keith Jones said the Deloitte WA Index decreased for the second month in a row.

"The decrease in share price, for the second month running, was a market response to the volatility in the US and London share markets, caused by concerns in the US sub-prime credit market," Mr Jones said.

Despite the overall decrease in the Deloitte WA Index, some companies bucked the trend to become the WA movers and shakers for August.

Leading the movers and shakers was Aquarius Platinum Limited, up 14 per cent or $397 million.

"Aquarius' growth was encouraged by the release of its full year results, with the company realising both record production (up 19 per cent) and record net profit (up 119 per cent)," Mr Jones said.

Other Deloitte WA Index movers and shakers for August were Alesco Corporation Ltd up $200 million or 20 per cent and OM Holdings Limited up 86 million or 41 per cent.

In August, Woodside Petroleum Ltd rose $1,369 million to $30, 853 million, Fortescue Metals Group Ltd up $272 million to $9,514 million and Macmahon Corporation Limited up $79 million to $803 million.

"In August, the volatile commodities market dropped by an averaged of 7 per cent. Lead and gold were the only commodities surveyed which increased, by 2 and 1 per cent respectively."

"Uranium dropped 26 per cent in August, followed by Zinc down 13 per cent," Mr Jones said.

Showing similar downward trends, palladium dropped by 9 per cent, copper and aluminium each down 8 per cent, silver and nickel each down 6 per cent. Oil and tin dropped 5 per cent and platinum was down 2 per cent.

By comparison to other indices in August, the Deloitte WA Index and the Nikkei were down by 3.5 per cent, and 3.94 per cent respectively. Marginal gains were made by the other indices with the All Ordinaries increasing by 0.98 per cent, and the FTSE and the US S&P 500 both up by 0.04 per cent and 0.01 per cent respectively.

Over the last 12 months the Deloitte WA Index has increased by 44 per cent. In comparison, increases over the last 12 months for all other indices were All Ordinaries 23 per cent, US S&P 500 up 13 per cent, the FTSE and the Nikkei by 6 per cent and 3 per cent respectively.