14/07/2008 - 10:55

WA companies retain value in June

14/07/2008 - 10:55

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Over the month of June, the market capitalisation of Western Australian listed companies featured in the Deloitte WA Index maintained record highs and performed considerably better than all other major indices.

Over the month of June, the market capitalisation of Western Australian listed companies featured in the Deloitte WA Index maintained record highs and performed considerably better than all other major indices.

The Deloitte WA Index remained unchanged from May, closing at $193 billion.

Deloitte Office Managing Partner Keith Jones said maintaining the record value in May and June was a reflection of the support for WA-listed stocks.

"This stability was in an environment where all other major indices suffered significant losses, with the Australian All Ordinaries falling 7.64 percent," Keith Jones said.

Movers and shakers during June within the Deloitte WA Index included Comdek Limited, Mantra Resources Limited and Poseidon Nickel Limited.

"In June, Comdek Limited recorded a high 162 percent gain in market capitalisation.

"The key driver behind this movement was the approval by the Reserve Bank of South Africa for the acquisition of Isicebi Carbon Mining Pty Ltd, a South African Company that holds and farms three coal licenses.

"Mantra Resources and Poseidon Nickel also recorded robust growth with the market capitalisation of each company increasing by close to 48 percent," said Mr Jones.

In stark contrast to the previous two months, the major world indices plummeted in June. The US S&P 500 was the hardest hit, posting a 7.98 percent decrease from May.

This was followed closely by the Australian All Ordinaries, FTSE 100 and the Nikkei which recorded losses of 7.64 percent, 7.39 percent and 5.98 percent respectively.

On the commodities market, the prices of tin, oil and copper recorded the largest gains of 16.04 percent, 9.93 percent and 7.83 percent respectively. Tin prices have been buoyed by increasing demand from the Japanese manufacturers and European metals traders.

The continued increase in the price of oil is believed to be a result of speculators buying large quantities of oil in the spot market driving the prices higher, coupled with the unrest in crude-producing countries, particularly Nigeria.

The copper price increases are largely the result of Peruvian and Mexican miner's strikes restricting supply

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