Growth recovery to come from a surge in project and repair work says Deloitte Queensland IndexDOWNLOAD
Wednesday, 20 July 2011: Professional services firm, Deloitte, today released the Deloitte Queensland Index – Gala Edition, an annual review of Queensland stocks and indices that showcases the performance by market capitalisation of all Queensland listed companies over the past year.
There were 34 new additions to the index during FY11 of which three were a result of large initial public offerings from Queensland Rail National limited (QRN), Aston Resources Limited (Aston) and Echo Entertainment Group Limited (Echo). QRN ended its first month on the index with a market capitalisation of $6.8 billion which rose by 20.7% to $8.2 billion by year end. Aston ended its first month on the index with a market cap of $1.2 billion, rising 46% to $1.8 billion by year end. Echo listed in the final month of FY11 with a market capitalisation of $2.8 billion.
Of the 121 companies that posted an increase during FY11, the largest increases in market capitalisation in dollar terms were delivered by Campbell Brothers Limited, Linc Energy Limited, PanAust Limited, New Hope Corporation Limited and Flight Centre Limited.
During FY11, the Deloitte Queensland Index (the Index) increased by 2%, although it did underperform the ASX All Ordinaries, which increased 7.7% over the same period.
Deloitte Access Economics made a debut contribution to the index this year with an outlook for Queensland following the devastating natural disasters that affected the State in early 2011. Chris Richardson, Partner at Deloitte Access Economics said: “Queensland’s growth spurt will start with its huge repair task which will offset the interest rates and high Australian dollar’s negative impact on the tourist industry. But the true driver of growth in Queensland in the next couple of years will be its biggest-ever surge of project work centred on the rich mineral arc from Gladstone to Townsville.”
Deloitte Brisbane Office Managing Partner Tim Biggs said: “The mining sector continues to grow with pace, and that will be placing unprecedented pressures on the State’s job market, with record-low unemployment underpinning the positive movement of the wider economy.
“However, in what has been described as ‘patch work’, many other sectors of the Queensland economy are suffering from low levels of business and consumer confidence due in large part to the strength of the Australian dollar which has pressured Queensland’s tourist industry,” said Mr Biggs.