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Adelaide Brighton, Codan and Sundance shining stars of the June 2010 Deloitte SA Index


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9 July 2010: The Deloitte South Australian Stock Exchange Index (the Deloitte SA Index) decreased by 12.3% during the three months to 30 June 2010, compared to a decrease of 2.4% in the previous quarter.

David Hill, Deloitte Corporate Finance Partner, said, “The majority of companies in the SA Index experienced share price reductions in the June quarter and, as such, the SA Index under performed the ASX 200 in the three months to 30 June 2010.

“Despite the decrease in the Deloitte SA Index over the June quarter, a number of companies still experienced significant share price increases including Prince Hill Wines Limited (40.0%), Sundance Energy Australia Limited (25.9%) and Mesbon China Nylon Limited (22.2%).”

Many of the major world indices decreased in the three months to 30 June 2010. The Nikkei 225 showed a decrease of 15.4% while the FTSE 100 and the US S&P 500 recorded losses of 13.4% and 11.9%, respectively. The S&P/ASX 200 benchmark decreased by 11.8% over this same period.

Only a small number of companies experienced market capitalisation weighted increases in their share price during the June quarter, namely, Adelaide Brighton Limited (Adelaide Brighton), Codan Limited (Codan) and Sundance Energy Australia Limited (Sundance).

Adelaide Brighton experienced a share price increase of 3.9% for the three months to 30 June 2010. While Adelaide Brighton’s share price improvement could not be attributed to a specific announcement, their share price increase may reflect an improving outlook for the Australian building and construction industry. This was evident in Adelaide Brighton’s announcement on 5 July 2010 of a profit upgrade for the first half of the 2010 calendar year due to higher than expected demand for cement and lime commensurate with increased infrastructure and resources industry activity.

Codan’s share price increased by 5.8% over the June quarter, reflecting a 19 April 2010 profit upgrade for the second half of the 2010 financial year increasing Codan’s full year guidance of net profit after tax to approximately $30 million. This has been primarily driven by high levels of sales orders and ongoing product demand for Codan’s metal detection products.

The positive contribution from Sundance primarily reflected positive market sentiment following the company’s announcement on 24 June 2010 of the commencement of the company’s US oil prospecting and development program.

Wine companies recorded two of the four largest percentage share price increases for the June quarter. Prince Hill Wines Limited increased by 40.0%, while Brand New Vintage Limited was up 13.3%.

Decreases

The three companies that recorded the highest percentage share price decreases for the June quarter 2010 were Elders Limited (down 69.5%), TWT Group Limited (down 64.3%) and Island Sky Australia Limited (down 60.0%).

Initial Public Offerings, Additions and Removals

Two companies were added to the Deloitte SA Index in the June quarter following the successful Initial Public Offerings of Novarise Renewable Resources International Limited, which closed on 30 June 2010, down 4% on its original listing price on 29 April 2010, and Gerard Lighting Group Limited, which closed on 30 June 2010, down 14% on its original listing price on 19 May 2010.

Outback Metals Limited, was added to the Deloitte SA Index in the June quarter due to a change in registered office from Melbourne to Adelaide.

Chesser Resources Limited, was removed from the Deloitte SA Index in the June quarter due to a change in registered office from Adelaide to South Brisbane.

If you would like to view the full release, please download the attachment below.

Please download the 'Analysis of SA companies listed on the Australian Securities Exchange' below.

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Contacts

Name:
Jane Kneebone
Company:
Deloitte Australia
Job Title:
Director, Corporate Affairs & Communications
Phone:
Tel: +61 3 9671 7389, Mobile: +61 416 148 845
Email
jakneebone@deloitte.com.au
Name:
David Hill
Company:
Deloitte Private
Job Title:
National Managing Partner
Phone:
Tel: +61 8 8407 7056
Email
dhill@deloitte.com.au

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