According to Deloitte’s WA index, total market cap for companies in the state rose for the third consecutive month in September, closing at $A145.7 billion.
Deloitte lead audit partner Tim Richards credited the lift to optimism for the Liberal win and encouraging Chinese economic data pushing equity markets higher.
“Business and investor confidence has improved during the month, largely due to the expectation that the new federal government will reduce the regulatory burden faced by companies in their day-to-day operations,” Richards said.
“The Deloitte quarterly [chief financial officer] survey has consistently showed policy-related uncertainty is a major concern for business decision-makers.”
The professional services firm listed Atrum Coal, Perilya and Emeco Holdings among its movers and shakers for the month, with market cap increases of 59.3%, 45.5% and 30.6% respectively.
Broken Hill zinc-lead mine operator Perilya increased in value by $77 million over the month from $169 million to $246 million on a bid by its largest shareholder, Zhongjin Lingnan Mining, to acquire all outstanding Perilya shares at 35c each.
It represented a 59.1% premium on the previous month’s closing share price of 22c.
Shares in Perilya were last trading at 31.5c.
A shift in key economic fundamentals, meanwhile, including a lower Australian dollar and interest rates remaining at record lows, eased some of the pressure faced by mining companies.
“The Western Australian economy still has challenges to overcome, as resource companies continue their efforts to reduce costs, reign in spending on large projects and transition from a construction boom to a production boom,” Richards said.
Gold volatility was evident in dramatic moves by Perseus Mining, down 29.4% in value to $252 million and Gold One International, up 27.7% in value to $327 million.
Other notable market cap changes came from Sirius Resources, down 12.7% to $549 million and uranium miner Paladin Energy down 13.3% to $467 million.
Fluctuations among the state’s heavyweights were more subdued, with Fortescue Metals Group up 9.7% at $14.8 billion and Iluka Resources up 6.6% to $4.8 billion.
