By Rob Starr, Content Manager, Big4.com
The market capitalisation of WA listed companies continued their upward trajectory during October, with the Deloitte WA Index increasing 1.8% during the month, closing at AU$145.38bn.
Investors remain cautious, however, on the back of the announcement of China’s GDP data for the September quarter, released mid-October. The Chinese economy grew by 7.4% year on year in the third quarter, the slowest rate since early 2009. The news of slower growth renewed fears of lower levels of investment in infrastructure and commercial construction, negatively impacting base metals nickel, zinc and aluminium, whose prices fell by 12.4%, 11.4% and 9.9% respectively.
The Deloitte WA Index Movers and Shakers for the month of October included Aspen Group, Marengo Mining Limited and Central Petroleum Limited, who posted increases in market capitalisation of 99.4%, 52.4% and 44.7% respectively.
Central Petroleum Limited’s (Central) market capitalisation increased by AU$84m to close the month at AU$270m. This increase is related largely to Central’s joint venture with Santos Limited for the further exploration and potential development of permits in the Amadeus and Pedirka Basins in central Australia, which was announced in early October. The arrangement relieves Central of the obligation to provide substantial capital, with Santos Limited to fund exploration activities, in return for up to a 70% interest in the areas of interest.