The Deloitte WA Index dropped during September, with the market capitalisation of Western Australian listed companies decreasing by 6.4% to close the month at $118.5 billion.
The Deloitte WA Index has now dropped a staggering 20.6%, or $30.8 billion, since June 30 last year.
Deloitte clients and markets partner WA Tim Richards said that falling prices of key commodities and continued global equity market jitters weakened the Index last month.
“September saw anxious investors initiating sell-offs in equity markets amid growing concerns of a slowing Chinese economy, and an expected interest rate hike by the US Federal Reserve,” Richards said.
“This continues a lengthy tough run for the Deloitte WA Index, which despite an 8.4% boost from the listing of South32 Limited in May this year, has overall dropped a total of $30.8bn since mid-last year.”
Wesfarmers, which has the residential Curragh coal mine in Queensland’s Bowen Basin and the Bengalla thermal coal mine in the Hunter Valley, was, as always, atop of the WA Index, but was not immune to the wider malaise, dropping $1.618 billion between August 31 and September 30.
South32’s market cap also fell $825 million during the period, ranked third just ahead of iron ore giant Fortescue Metals Group.
Bucking the trend, emerging South Africa-focused junior Coal of Africa actually climbed from $122 million to $173 million, having completed a shareholder-approved share placement on September 21 to Yishun Brightrise Investment at 5.15p per share (on the AIM bourse) to raised nearly £9.5 million.
The funds will be used to finance pre-construction costs at Coal of Africa’s flagship Makhado coking and thermal coal project and for general working capital.
Atrum coal’s market cap stayed flat at $113 million over the period.
