12/11/2007 - 09:26

Deloitte WA Index reaches a record high in October

12/11/2007 - 09:26

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The market capitalisation of Western Australian listed companies included in the Deloitte WA Index increased by 7.2 per cent in the month of October, closing at a record $171.8 billion.

The market capitalisation of Western Australian listed companies included in the Deloitte WA Index increased by 7.2 per cent in the month of October, closing at a record $171.8 billion.

Deloitte Perth Office Managing Partner Keith Jones said, "The Deloitte WA Index broke the $170 billion mark and reached a record high during the month of October."

"Before October, the previous Deloitte WA Index record was made in June this year. This was followed by a market slump, but now it appears the market is surging ahead again. At the end of October, the WA Index was 3.3 per cent or $5.5 billion ahead of where it was at the end of June."

Dominion Mining Limited leads October's movers and shakers with an increase in market capitalisation of 64.7 per cent or $246.6 million in the month of October.

"Dominion Mining's success in October is primarily a result of increasing gold prices and a record net profit posted this year due to a successful operational performance by Dominion's Challenger Gold Mine, as well as a positive mark-to-market adjustment on Dominion's hedge book and a profit from the sale of uranium exploration interests," Mr Jones said.

In October, other movers and shakers were Straits Resources Ltd up 58 per cent or $523 million and Carnarvon Petroleum NL up 56.1 per cent or $116.2 million.

In the month of October, Midwest Corporation Ltd went up $386.3 million (54.8 per cent) to $1,091 million, Jubilee Mines NL up $803.2 million (35.4 per cent) to $3,070 million, Aquila Resources Limited up $284.1 million (32.2 per cent) to $1,166.6 million and Mount Gibson Iron Limited up $467.7 million (24.8 per cent) to $2,354.5 million.

"The commodities market rallied during October with average commodity prices increasing by 3.8 per cent," Mr Jones said.

"During October significant gains were made by Oil up 15.7 per cent, Tin 8.3 per cent, Gold 7.1 per cent, Lead 6.8 per cent and Palladium up 6.3 per cent."

Solid gains were also made in other metals with Silver increasing 5.3 per cent, Nickel 4.8 per cent, Platinum 4.4 per cent and Aluminium 1.1 per cent. Prices of other commodities were down including Uranium down 1.1 per cent, Copper down 4.4 per cent and Zinc down 8.3 per cent.

During October, the Deloitte WA Index and the All Ordinaries increased by 7.2 per cent and 3.0 per cent respectively. International indices were mixed with the FTSE and the US S&P 500 increasing by 3.7 per cent and 0.4 per cent respectively, however the Nikkei decreased by 0.3 per cent.

Over the last 12 months, the Deloitte WA Index has increased by 52.9 per cent. In comparison, gains in value across the other main indices over the last 12 months were relatively lower with the All Ordinaries gaining 26.6 per cent, the US S&P 500 11.5 per cent, the FTSE 8.8 per cent and the Nikkei increasing by only 2.0 per cent.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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