WA market cracks $150bn in May: Deloitte

The market capitalisation of listed Western Australian companies leapt 10.4 per cent in May, largely driven by the resources sector, according to the Deloitte WA Index, released yesterday.

The full text of an announcement from Deloitte is pasted below

In the month of May, the market capitalisation of Western Australian listed companies in the Deloitte WA Index leapt 10.36% or $14.88 billion to $158.59 billion.

May was the first time the total value of all WA-listed stocks climbed to more than $150 billion.

Deloitte Perth Office Managing Partner Keith Jones said the driving force was, once again, the booming resources sector, led by Fortescue Metals Group Ltd ("FMG").

"FMG led May's Movers and Shakers, increasing its market capitalisation by 69.9% or $4,151 million to $10,095 million," Mr Jones said.

"FMG's phenomenal rise was encouraged by the signing of a Long Term Off Take Agreement with Tangshan Iron & Steel Group, the proposed expansion of the Pilbara Iron Ore and Infrastructure Project, as well as a number of positive analysts reports," Mr Jones said.

Deloitte WA Index May Movers and Shakers also include AIM Resources Limited Ltd which increased market capitalisation by 78.7% to $271 million and Wildhorse Energy Limited 59.6% to $205 million.

Other significant movements during May were Murchinson Metals Ltd up 58% to $1,262 million, LionOre Mining International Limited up 58% to $6,980 million, Macmahon Holdings Ltd up 34% to $563 million and Portman Ltd up 31% to $1,300 million.

"On the whole, the commodities market remained relatively flat in May, with an average commodity price increase of 0.71%. However, lead and uranium increased significantly, rising 16.53% and 7.96% respectively," Mr Jones said.

Silver and tin made minor gains of 0.15% and 1.76%, respectively. Price declines occurred for gold down 2.65%, platinum down 0.43%, palladium down 1.41%, copper down 4.55%, zinc down 1.41%, nickel down 1.96%, aluminium down 2.95% and oil down 2.59%.

All major Index's performed strongly in May. The WA Index was up by 10.36%, the Nikkei up 2.73%, the All Ordinaries increased by 2.98%, the FTSE and the US S&P 500 increased by 2.63% and 2.42% respectively.

Over the last 12 months the WA Index has increased by 45.45%. In comparison, increases over the last 12 months for all other indices were All Ordinaries 23.85%, US S&P 500 18.59%, the FTSE and the Nikkei by 13.88% and 12.50% respectively, again demonstrating the higher rate of growth of WA based companies relative to market wide growth.