Seventh month of growth in WA Index

The market capitalisation of Western Australian listed companies within the Deloitte WA Index increased by 5.3% in August.

The market capitalisation of Western Australian listed companies within yesterday’s Deloitte WA Index, increased by 5.3% in August, the seventh consecutive month of growth.

The growth was equivalent to a collective value of $137.7 billion.

The mining and oil and gas sectors were once again the key drivers behind the growth, increasing 6.6% and 5.8% respectively.

The most significant gains were made by Herald Resources, Grange Resources and Aditya Birla Minerals, respectively growing by 100%, 62.0% and 52.5%.

Herald Resources’ growth followed an unsolicited off-market takeover offer during the month by Calipso, which was rejected by the company’s independent directors.

Calipso is a wholly-owned subsidiary of PT Bumi Resources, which also owns of 84.2% of Herald.

Grange Resources announced a number of initiatives during the month, including a one-for-one rights issue to raise approximately $124 million and $29 million in placements to major shareholders.

Aditya Birla attributed its increase in share price to the steady growth in the London Metals Exchange copper price over the period and market reassessment of their copper resources at both the Nifty Copper and Mt Gordon projects.

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