The Deloitte WA Stock Exchange Index recorded its fourth consecutive increase in the month of September, helping the local market continue its outperformance of the national market.
The total market capitalisation of Western Australia-listed companies increased by 5.4 per cent in September to $55.4 billion.
This compared with a 3.1 per cent increase in the ASX All Ordinaries Index.
Over the past year, the local index has grown by more than $10 billion, driven mainly by growth in the oil and gas and mining sectors.
As a result, investors in Western Australian stocks have achieved much higher returns than investors in the national market, as depicted in the figure (right).
Deloitte partner Peter McIver said the growth in market capitalisation of WA companies in September came from a broad range of sectors.
“Three new companies – Paladin Resources, Genetic Technologies and Macmahon Holdings – have entered the top 50 list for the first time,” Mr McIver said.
Foodland was another strong performer, as speculation of possible takeover activity encouraged investor interest in the stock.
Oil and gas producer Woodside continued its strong run in September while nickel miner LionOre, which recently announced a bid for junior miner MPI Mines, also rose in value.
Among smaller stocks, uranium explorer Paladin continued its remarkable rise, tripling in value in the month of September.
Mining companies Anvil Mining and Portman and property developer Cedar Woods Properties also made strong gains.
On the negative side, the biggest drop was recorded by Kimberley Diamond Company, whose share price plunged in September from about $1.60 to around $1.05 after a strong run earlier in the year.
Gaming company Burswood was removed from the index following its takeover by Publishing and Broadcasting, cutting more than $600 million in market capitalisation from the index.