The market capitalisation of Western Australian companies has nearly doubled in value over the past eight months, with the latest Deloitte WA Index closing at nearly $145 billion at the end of September.
The market capitalisation of Western Australian companies has nearly doubled in value over the past eight months, with the latest Deloitte WA Index closing at nearly $145 billion at the end of September.
The announcement is below:
The market capitalisation of Western Australian listed companies featured in the Deloitte WA Index closed at $144.6b for September, increasing a further 5% for the month, and almost doubling in value during the past eight months.
Keith Jones, Managing Partner of Deloitte in Western Australia, said from 31 January until 30 September 2009, the Deloitte WA Index had rebounded from $72.8b to its current level of above $144b - a growth of almost 100%.
"The powerful rebound in the value of West Australian entities is reflective of sustained demand for resources, stronger commodity prices and growing market confidence," Mr Jones said.
"The market rebound has been underpinned by demand from China for resources and investment opportunities, with many companies capitalising on the improved sentiment by raising new capital to advance projects."
Movers and shakers during August within the Deloitte WA Index included Bauxite Resources Limited, Sandfire Resources NL and Arafura Resources Limited, with the market capitalisation of each increasing by 110.1%, 97.7% and 59.7%, respectively.
The significant increase in Bauxite Resources followed a successful $57m capital raising during the month. Funds raised are intended to be used for fund infrastructure enhancement with an aim to reduce costs and increase shipping tonnages.
During September, Sandfire Resource announced the drilling results of their Doolgunna Copper-Gold Project, which confirmed and extended their DeGrussa and Conductor 1 deposits, and highlighted a potential new zone of copper-gold mineralisation. Sandfire also announced it had reached an agreement with Mineral Resources, through which it will fund and operate an exploration and development program at Sandfire's Borroloola project. Sandfire will receive 30% of future profits before interest and tax.
Arafura Resources' market capitalisation has increased during the month following the issue of $23m of ordinary shares to the East China Mineral Exploration and Development Board, who now have an approximate 25% holding in the company. This capital will used by Arafura to progress with the Bankable Feasibility Study for the Nolan's Rare Earths Project in the Northern Territory.
The major world indices have predominantly continued with positive growth through September. Both the FTSE and Australian All Ordinaries increased by 5.1%, with the US S&P, increasing 3.1%. The Nikkei fell 3.4%.
The month has seen improved market sentiment for most base metals. Gold has also gained ground based on some strong economic data and a weaker US dollar. Silver, Tin and Lead were up 13.8%, 8.9% and 7.9%, respectively with Gold, Zinc, Platinum and Paladium up by 5.7%, 4.7%, 4.5% and 2.3%, respectively. Oil, Copper and Nickel, have all fallen, with respective declines of 2.9%, 4.9% and 6.6%, while Uranium recorded a more significant decrease of 9.6%.
