09/03/2009 - 08:54

Retailers, miners lift WA stocks in Feb

09/03/2009 - 08:54

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Rebounds in the retail and mining sectors have lead a 13 per cent increase in the Deloitte WA Index for the month of February, with the index up from $73 billion to $82.5 billion.

Retailers, miners lift WA stocks in Feb

Rebounds in the retail and mining sectors have lead a 13 per cent increase in the Deloitte WA Index for the month of February, with the index up from $73 billion to $82.5 billion.

The market capitalisation of Western Australia's top 100 listed companies increased in February despite the drop in other major world indices.

"The Deloitte WA Index has rebounded in the month of February, largely due to increases in both the retail and mining sectors," Deloitte Perth office managing partner, Keith Jones said.

"The strong growth in value for Woodside Petroleum Limited, Wesfarmers Ltd and Fortescue Metals Group Ltd contributed $7.5 billion to the value of the WA Index and represented 80 per cent of the gain for the month."

Wesfarmers increased in capitalisation by $5.32 billion (48.8 per cent) during February, of which $2.9 million was added by way of new capital. Wesfarmers also announced a 46.3 per cent lift in profit to $879 million in the six months to 31 December 2008. The growth of profit was largely attributed to the Coles acquisition.

Fortescue Metals Group's market capitalisation has rebounded strongly in February on the back of renewed interest from Chinese investors. The market capitalisation was up a significant $2.74 billion (55.7 per cent).

Movers and shakers during February within the Deloitte WA Index included Emeco Holdings, Mantra Resources and Resolute Mining, with the market capitalisation of each company increasing by 76.5 per cent, 73.3 per cent and 66.6 per cent respectively.

The increase in market capitalisation for Mantra Resources was due to results of the recent drilling program at the company's flagship Mkuju River Project in southern Tanzania. Results have confirmed the presence of high grade uranium intersections.

All major world indices fell in February. The US S&P 500 was the hardest hit falling 10.9 per cent, followed by the FTSE, Nikkei and Australian All Ordinaries, recording losses of 7.9 per cent, 5.3 per cent and 5.2 per cent respectively.

Commodities recorded mixed movements during the month. The prices of copper and platinum continued to rise, increasing by 9.7 per cent and 8.7 per cent respectively. Nickel prices, dropped 11 per cent as stainless steel makers run down inventories.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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