WA stocks hit harder than most in 2018

The final months of 2018 hit investors in Western Australian stocks hard, with the Business News index of 30 local ASX-listed companies falling 13.3 per cent.

The BN30 index closed the year at 128.3 points, when adjusted for the split off of Coles out of Wesfarmers in November.

That fall echoed moves across global equity markets more broadly, and came despite strong signs for the local economy.

The ASX 200 was down 6.8 per cent across 2018, while the Dow Jones reportedly fell 5.6 per cent, in what was a particularly volatile year.

Much of the damage was down in October, amid concerns about trade wars and monetary tightening.

Shares in WA’s biggest company, Wesfarmers, performed well during what was an active year, up 1.5 per cent to $32.22, adjusted for the Coles demerger.

Woodside Petroleum shares were about 4.3 per cent lower at $31.32, in what was similarly a busy year for the company – making progress on the Browse and Scarborough LNG developments and completing a big capital raising.

The best performer was Northern Star Resources, which had a 51.5 per cent increase in share prices despite the gold price finishing the year roughly steady.

Property fund BWP Trust and manufacturer Austal were also higher, with shares rising 14.2 per cent and 6.9 per cent respectively, even after the surprise revelation in May that the shipbuilder would not be involved with Lurssen and Civmec’s offshore patrol vessel build.

Most companies on the index were battered, however.

Shares in contractors Ausdrill fell 52 per cent, Decmil Group 43 per cent and Monadelphous 21 per cent.

Those drops came despite a resurgence of potential contracting work in WA, with three big new iron ore projects such as BHP’s South Flank, Rio Tinto’s Kodaideri and Fortescue Metals Group’s Eliwana among many receiving the green light.

MMA Offshore, which services the oil and gas sector, had a share price reduction of 45 per cent.

Shares in Mineral Resources, which is both a miner and a contractor, dropped 27 per cent, while lithium miner Pilbara Minerals’ shares were 44 per cent lower at December 31

Similarly, Western Areas and Iluka Resources had share price falls of 38.3 per cent and 25.1 per cent, respectively.

The biggest reductions were in two non-mining businesses.

Automotive Holdings Group was adversely impacted by poor national car sales with shares down 57 per cent, while construction industry technology hopeful FBR (formerly Fastbrick Robotics) ended the year 52.4 per cent lower.

For FBR, one big factor was the cancellation of its strategic alliance with US-based Caterpillar in December, with the American company also selling its 2.1 per cent equity stake.