12/06/2009 - 12:37

WA shares index soars 54%

12/06/2009 - 12:37

Bookmark

Save articles for future reference.

Resource stocks have helped to continue the positive momentum in the Deloitte WA Index with the collective market capitalisation of WA's top 100 companies jumping 54 per cent over the past four months.

WA shares index soars 54%

Resource stocks have helped to continue the positive momentum in the Deloitte WA Index with the collective market capitalisation of WA's top 100 companies jumping 54 per cent over the past four months.

In its latest snapshot of Western Australian listed companies, the index showed a 9.8 per cent increase from April's $101.9 billion to $111.9 billion recorded at the end of May.

Calendar 2009 has been good so far for WA's listed businesses, following a flat December and a loss of $17 billion in companies' market capitalisation in November.

"May marks the fourth consecutive month of positive growth for the WA Index, following strong growth in both the mining and the oil & gas sectors," Deloitte Perth managing partner Keith Jones said.

Fortescue Metals Group led the mining sector' positive growth in May with its market capitalisation increase by $1.4 billion or 21.3 per cent to $8 billion.

The state mining sector recorded growth of $7 billion for the month of May.

Other major gains in the mining sector include Centamin Egypt and Equinox Minerals, whose market capitalisation increased by $608.7m (56.7 per cent) and $504.0m (30.5 per cent) respectively.

WA's oil and gas sector jumped 30 per cent on the back of higher oil prices in May, with index leader Woodside Petroleum's market capitalisation increasing by $3.5 billion (12.9 per cent to $30.7 billion.

Movers and shakers during May within the Deloitte WA Index included Catalpa Resources, Comet Ridge and Grange Resources, with the market capitalisation of each company increasing by 162.2 per cent, 155.9 per cent and 126.4 per cent respectively.

Interest in both Catalpa Resources and Comet Ridge was stimulated as the companies announced their respective capital raisings to advance key projects.

Also in May, Grange Resources announced it had returned to its normal production rate of 2.5 million tonnes per annum of magnetite concentrate at Savage River, following the repair of a mill that went offline in late February.

The top five companies by market capitalisation in May were Woodside, Wesfarmers ($21.4 billion), FMG, Paladin Energy ($3.1 billion) and Aquarius Platinum ($2.5 billion).

 

 

 

The announcement is below:

 

 

The Deloitte WA Index, the leading barometer of WA's top 100, ASX-listed companies, continued a four-month growth pattern, climbing to $111.9b at the end of May. May's increase marks a 53.8% rise in the Index since February, thanks largely to WA's resources-based economy.

"May marks the fourth consecutive month of positive growth for the WA Index, following strong growth in both the mining and the oil & gas sectors" Deloitte Perth Office Managing Partner Keith Jones said.

Once again, the mining sector has recorded positive growth, increasing $7.0b in the month of May.

Fortescue Metals Group Ltd led the way, with market capitalisation increasing by $1.4b (21.3%) in May following media coverage of a possible dual listing on the Shanghai Stock Exchange.

Other major gains in the mining sector include Centamin Egypt Limited and Equinox Minerals Limited, whose market capitalisation increased by $608.7m (56.7%) and $504.0m (30.5%) respectively.

The oil & gas Sector performed well due to a 30.0% increase in oil prices during May, with Woodside's market capitalisation increasing by $3.5b (12.9%).

Movers and shakers during May within the Deloitte WA Index included Catalpa Resources Limited, Comet Ridge Limited and Grange Resources Limited, with the market capitalisation of each company increasing by 162.2%, 155.9% and 126.4% respectively.

Interest in both Catalpa Resources Limited and Comet Ridge Limited was stimulated as the companies announced their respective capital raisings to advance key projects.

Also in May, Grange Resources announced it had returned to its normal production rate of 2.5mtpa of magnetite concentrate at Savage River, following the repair of a mill that went offline in late February.

All major world indices continued to increase in May. The Nikkei experienced the largest gain of 7.9%, followed by the FTSE 100, US S&P 500 and Australian All Ordinaries, recording increases of 4.5%, 3.8% and 1.8% respectively.

The commodities market performed well during the month in review, with gains made by all metals, except for Aluminium which dropped 3.6%. Significant gains were made by Oil (29.7%), Nickel (19.3%), Lead (17.5%), Uranium (15.9%) and Tin (15.0%). Solid gains were also made in Zinc (10.1%), Copper (8.6%), Palladium (8.4%) and Platinum (7.7%).

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options