11/07/2014 - 10:02

Tough month for WA stocks: Deloitte

11/07/2014 - 10:02

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The Deloitte WA Index declined in June after positive performance in the previous month, with the market capitalisation of Western Australian listed companies decreasing by 3.1 per cent to close the month at $149.3 billion.

Tough month for WA stocks: Deloitte
Deloitte WA managing partner Michael McNulty.

The Deloitte WA Index declined in June after a positive performance in the previous month, with the market capitalisation of Western Australia-listed companies decreasing by 3.1 per cent to close the month at $149.3 billion.

Base metals experiencing steady gains with the exception of tin and nickel, both of which had significant gains in recent months. 

Precious metals such as gold and silver rose strongly during the month, 5.8 per cent and 9.8 per cent respectively, as a result of increased concerns around inflationary pressures in some Western economies.

“Although the local markets are feeling the impact of weak iron ore prices and high commodity price volatility, investors can still seek comfort form international equity markets, which have generally performed well this month, as well as improved sentiment towards gold and silver,” Clients & Markets partner Tim Richards said. 

 

The nickel price fell 1.2 per cent during the month, coming off its 16-month high in May, due to increasing concerns around the tensions between Ukraine and Russia, a major global nickel supplier.

Platinum and palladium continued an upward trend, posting gains of about 1 per cent each as a result of continued supply disruptions in South Africa, a major supplier of the metals. 

Uranium prices remained flat for the month having fallen by 8.1 per cent in May, when it continued its downward spiral due to excess supply and little demand.

Iron ore experienced a 2.2 per cent increase during the month in response to the closure of several high-cost Chinese iron ore mines in recent weeks, which helped to drive a rebound in prices.

International equity markets also experienced a mixed month despite escalating violence in Iraq, with the S&P 500 and Nickkei increasing by 2.6 per cent and 3.3 per cent respectively, while the FTSE 100 fell by 1.6 per cent.

The local equity market also suffered during the month, with the WA Index and the All Ordinaries posting losses of 3.1 per cent and 2 per cent respectively during the month. 

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