WA Index surges past $100 billion

Western Australian listed companies featured in the Deloitte WA Index surge during April.

The market capitalisation of Western Australian listed companies featured in the Deloitte WA Index surged back above the $100 billion mark during April, following an 11.24% increase during the month.

The $10.3 billion increase from the end of March took the total value of the WA Index to $101.9 billion at the end of April, and continued the strong growth in recent months which has seen the index rise from $73 million, or 39% since the end of January.

It is the first time the Index has been above $100 billion, since falling below the mark in October 2008.

“Once again, the Deloitte WA Index has continued to perform strongly, recording its third consecutive month of positive growth in April,” Deloitte Perth Office Managing Partner Keith Jones said.

“Both the retail and mining sectors have contributed strongly to the growth in the value of WA listed companies, delivering a combined increase in market capitalisation of $7.6 billion during April,” Jones said.

Wesfarmers has continued to lead the way in the retail sector, with an increase in market capitalisation of $3.9 billion in April.

The mining sector also recorded strong growth in April, increasing $3.9 billion. This was led by increases in the capitalisation of Aquarius Platinum Limited and Paladin Energy Ltd by $761.9m and $754.4m respectively.

Shares in Aquarius surged after it raised $170m in a discounted placement that will be followed by a further rights issue and convertible bond raising. It is expected that over $350m will be raised in total.

The increase in market capitalisation for Paladin Energy Ltd was followed by an announcement that Paladin had opened its second uranium mine, the Kayelekera operation in Malawi, in which it has an 85% interest.

The US$200 million operation has a mine life of around seven years with expected production of approximately 1,500 tonnes of uranium oxide.

Movers and shakers during April within the Deloitte WA Index included Aditya Birla Minerals Ltd, Mirabela Nickel Ltd and Perilya Limited, with the market capitalisation of each company increasing by 157%, 148% and 128% respectively.

All major world indices continued to increase in April.

The US S&P 500 experienced the largest increase of 10.93%, followed by the FTSE 100, Nikkei and Australian All Ordinaries, recording gains of 9.10%, 8.86% and 6.01% respectively.

Commodities recorded mainly positive movements during the month. Increases were recorded by Tin (19.27%), Nickel (19.18%), Copper (10.74%) and Zinc (8.5%), while the price of Silver (-4.63%) and Gold (-3.37%) dropped. Other commodities remained comparable to last month.

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