05/11/2013 - 13:05

WA stock index higher in October

05/11/2013 - 13:05

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A fourth consecutive month of growth in the market capitalisation of Western Australia's top 100 listed companies is a sign of renewed business confidence within the WA economy, according to market analysts.

WA stock index higher in October

A fourth consecutive month of growth in the market capitalisation of Western Australia's top 100 listed companies is a sign of renewed business confidence within the WA economy, according to market analysts.

Deloitte's WA Index, which tracks the market capitalisation of WA-listed companies, rose by 6.5 per cent during October to close at $155.2 billion.

This marks the fourth consecutive month of gains for the index following what was described as a "sombre" end to the financial year in June.

Deloitte lead audit partner Tim Richards said a recovery in the housing sector, improvement in the labour market and low interest rates had increased optimism among investors.

He warned, however, that long-term growth would require improvements in the state's competitiveness.

"Gone are the days where commodity prices can sustain poor productiveness and inefficient performance," Mr Richards said.

"Western Australia will need to ensure that it is adaptable to changes in external forces and maintains a strong foundation in order to take advantage of the global demand for the state's resources."

Diversified healthcare company Allied Healthcare Group was the biggest mover and shaker for October on the Deloitte WA Index, more than doubling its market capitalisation to close the month at $188 million.

Gold miner Tribune Resources and iron ore junior Northern Iron posted gains in their market capitalisation of 57 per cent and 54 per cent respectively.

Jupiter Mines, Coalspur Resources and Summit Resources were among the stocks to lose ground on the index during October.

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