The market capitalisation of Western Australian listed companies increased by 0.9 per cent or $1.14 billion in January to $126 billion, according to the Deloitte WA Index.
Deloitte Perth Office Managing Partner Keith Jones said the rally in the nickel price, gaining 16%, led a number of nickel based companies to enjoy significant growth.
"The nickel price led Mirabela Nickel Ltd to increase its market capitalisation by 39% or $98 million," Mr Jones said.
Image Resources NL rose 36 per cent or $50.7 million, Salay Mally Mining Ltd was up 35.5% or $152 million and Mincor Resources increased by 34% or $156 million.
"In the month of January, commodity prices were volatile. While nickel soared 16%, zinc prices dropped 18%. Precious and base metals remained fairly flat, with an average increase of 0.3%," Mr Jones said.
In January 2007, the copper price decreased by 9% and oil was down 4%. On the upside, tin, silver and platinum prices rose 4.1%, 4.8% and 3.8% respectively.
"Overall in January, the Deloitte WA Index remained relatively steady, up 0.9%, while the All Ordinaries increased by 2%. This goes against the trend, as over the last 12 months the Deloitte WA Index has increased by 35%, while the All Ordinaries increased by 18%," Mr Jones commented.
By comparison, the Nikkei rose 0.9%, FTSE up 0.7% and the US S&P 500 up 0.4%.
Over the last 12 months, increases were US S&P 500 up 11% and the FTSE 100 and Nikkei up by 8% and 4% respectively.
