WA stock index lower in November

The market capitalisation of Western Australia's top 100 listed companies has fallen on the back of lower commodity prices, marking an end to four months of consecutive gains.

Deloitte's WA Index fell by 2.4 per cent during November to close the month at $145.5 billion.

Precious and industrial metals prices fell heavily during the month, partly in response to signs central bankers in the US were likely to start scaling back monetary stimulus.

“The news of strengthening U.S. macroeconomic data has sent mixed signals to commodity markets,” Deloitte partner Tim Richards said.

“While the strengthening labour market is generally seen as a favourable indicator for economic activity and demand for Australia’s commodities, the ramifications of that same economic recovery includes a potential tightening of the US Federal Reserve’s stimulus package.”

Base commodities, including nickel, aluminium and lead, were also weaker.

There was better news for local iron ore producers, with Mount Gibson Iron and Atlas Iron posting market capitalisation gains of 17.4 per cent and 10.6 per cent respectively on the back of strengthening Chinese steel production growth.

Sandalwood producer TFS Corporation posted the highest gain for the month, with its market capitalisation up almost 40 per cent to $293 million after it issued more than 2.5 million shares under a divident reinvestment plan.

CTI Logistics' market capitalisation increased by 22.8 per cent to $159 million, while Liquefied Natural Gas posted a 19.4 per cent gain to $124 million.

In the struggling mining services sector, Ausdrill shed 48 per cent to $244 million while Emeco Holdings slumped 40 per cent to $117 million.

Meanwhile, Silver Lake Resources, Independence Group, and Regis Resources were among the gold producers to bear the brunt of a 5 per cent fall in gold prices during the month.