The market capitalisation of Western Australian listed companies which comprise the Deloitte WA Index grew 123.2% or $93 billion for the year ending 31 December 2009.
For December, the Deloitte WA Index closed at $167.9b an increase of 9.6% for the month.
“The Deloitte WA Index has increased 123.2% for the year ended 31 December 2009, a powerful bounce back from the turmoil of 2008 and indicative of the overall strength of the Western Australian economy,” said Mr Keith Jones, Managing Partner of Deloitte in
The growth in the value of Western Australian listed companies for December was once again strongly driven by the resources sector, evident by an increase in market capitalisation of $10.5b for the month.
During December, Movers and shakers within the Deloitte WA Index included Allied Gold Limited, Murchison Metals Ltd and Ausdrill Limited, with the market capitalisation of each company increasing by 66.5%, 50.4% and 43.0%, respectively.
In December, Allied Gold announced they now own 96.9% of Australian Solomons Gold Limited and were proceeding with a compulsory acquisition, as a result of an off-market takeover bid launched in September. The market capitalisation of Allied Gold Limited increased further due to the completion of its public offering of 432,840,000 shares which raised A$160m to fund the completion of its Simberi Project oxide expansion, and the redevelopment of the Gold Ridge Project acquired through the acquisition of Australian Solomons Gold.
The market capitalisation of Murchison Metals Ltd increased following the December announcement of a significant resource increase in the Jack Hills Project in which it holds a 50% interest through Crosslands Resources Ltd. As a result of the recently completed exploration program, the JORC compliant Mineral Resource at
Ausdrill Limited obtained approval from the Supreme Court of Western Australia in December, for the scheme of arrangement that will effect its merger with Brandrill. A friendly script merger has been proposed, in which Ausdrill will issue shares to Brandrill shareholders in exchange for shares in Ausdrill.
The major world indices also performed well in December. The Nikkei experienced the most significant increase of 12.8%, followed by the FTSE 100, Australia All Ordinaries and US S&P 500 with increases of 3.8%, 3.5% and 2.2% respectively.
Commodity movements showed mixed movements in December. The prices of nickel, palladium, tin and zinc increased by 12.96%, 11.50%, 11.10% and 10.32%, respectively, while silver and gold experienced declines of 8.71% and 7.01% respectively.