Issue 92 - January 2012 Edition
Welcome to the 92nd edition of the Deloitte Queensland Index (Deloitte Qld Index), a review of Queensland listed companies on the Australian Securities Exchange (ASX). A summary of market movements and the monthly league table can be viewed in the document below.
The Deloitte Qld Index increased 1.5% during January 2012, while the ASX All Ordinaries increased 5.2% over the same period. Over the 12 months to 31 January 2012, the Deloitte Qld Index increased 16.1% compared to a decrease of 10.8% for the ASX All Ordinaries.
It was an ‘in-between’ month for global financial markets, as the private sector continued negotiations with the Greek government for voluntary cuts to Greek debt holdings. While media reports have continually indicated a deal is close, the private sector is reportedly holding out, attempting to push for a high coupon rate on the debt and greater participation by public institutions like the European Central Bank. Any news on a deal, or lack thereof, may move markets to a considerable extent in February. In addition, long-term Portuguese government bonds have faced pressure in the markets during January. This is less urgent however, as Portugal isn’t likely to face the bond markets until 2013.
The US economy continues to show positive signs of a sustained recovery, which led to a 3.4% increase in the Dow Jones Industrial Average during January. The US Federal Reserve has indicated it would like to keep short-term rates near zero until the conclusion of 2014, with longer term rates remaining at historical lows, in an effort to bolster demand and improve employment numbers. The Federal Reserve has long been concerned about deflationary pressures in the sluggish US economy.
There are presently 211 companies on the Deloitte Qld Index. During January 2012, 118 companies increased their market capitalisation, 55 companies decreased their market capitalisation and the remainder were steady.
Major company movements
The largest increase in market capitalisation came from QR National Limited (QRN), which increased $708 million (8.5%) during January. During the month, the company’s proposed new rail project in the Galilee Basin was granted significant project status, which allows centralised control of its approval process through the state’s Coordinator-General. Late in the month, it emerged that China First Pty Limited, the mining venture controlled by Clive Palmer, would launch legal action against QRN, claiming it breached confidentiality agreements over a proposed new rail link out of the same area as the aforementioned project. QRN remained at number two on the Deloitte Qld Index.
Flight Centre Limited (Flight Centre) also enjoyed an increase in market capitalisation, increasing $318 million (19.7%) during January despite no major announcements. The Australian dollar enjoyed a strong performance during January, which may lead to higher international flight bookings by Australian residents going forward. Flight Centre moved up to number eight, from number nine, on the Deloitte Qld Index.
The market capitalisation of Campbell Brothers Limited (Campbell Brothers) increased by $203 million, or 6.1%, during January despite no major announcements. Campbell Brothers remained at number four on the Deloitte Qld Index.
A summary of the Deloitte Qld Index’s performance against major indices and the monthly league table can be viewed in the document below.
For additional information on the index, please contact:
Analyst, Corporate Finance
Tel: +61 7 3308 7389