Deloitte South Australian Energy & Resources Index outperforms S&P/ASX benchmarksDOWNLOAD |
12 December 2011: The Deloitte South Australian (SA) Energy & Resources (E&R) Index outperformed relative to the equivalent S&P/ASX benchmark indices for the three months to 31 October 2011.
The Index is based on the market capitalisation weighted share price performance of 41 South Australian listed E&R companies, and is compiled from publicly available information provided by the ASX on 31 October 2011.
Deloitte Partner Adrian O’Dea, leader of the firm’s South Australian energy & resources industry group, said the Index increased by 4.7% during the three months to 31 October 2011.
“For the quarter, the performance of the Index was markedly different from the other indices of the broader Deloitte SA Index or the ASX 200 Index,” he said.
“The S&P/ASX Energy, Utilities and Metals & Mining indices decreased by 4.7%, on a simple average basis over this period.
“It is likely that the stronger performance of the Deloitte SA E&R Index is a result of the performance of critical stocks within this Index, particularly Santos and Beach Energy.”
Excluding Santos, the Index increased by 3.7% over the quarter.
Six-month movements
The Deloitte SA E&R Index decreased during the six months to 31 October 2011 by 8.0%, while the S&P/ASX indices decreased by 10.8% (on a simple average basis) over the same period. Excluding Santos, the Deloitte Index decreased by 4.8% over the six month period, highlighting the significant influence Santos has had on the Deloitte SA E&R Index over the past six months.
Twelve-month movements
The Deloitte SA E&R Index outperformed in comparison to the equivalent S&P/ASX Indices for the 12 months to 31 October 2011, increasing by 20.3% compared to a 7.7% decrease in the S&P/ASX indices (on a simple average basis). However, if Santos is excluded from the Index, the 12 months to 31 October 2011 reveals a large increase of 46.7%.
Comparison to broader Deloitte SA Index
The Deloitte SA E&R Index, both including and excluding Santos, has outperformed the broader Deloitte SA Index during the 12 months to 31 October 2011. The broader Index experienced an increase of 3.7% for the quarter, a decrease of 7.2% for the six-month period, and an increase of 11.6% for the twelve months to 31 October 2011. This overperformance over the 12 month period is likely a result of the Deloitte SA E&R Index being purely aligned with the rising commodity price increases and, to a lesser extent, volatility of the overall market.
Increases
- Beach Energy provided the largest positive contribution to the increase in total market capitalisation of the Index during the quarter. Its share market capitalisation increased by $198.4 million (17.9%).
- Santos was the other major contributor, with its market capitalisation increasing by $221.4 million (2.0%).
- Western Desert Resources had the largest share price increase for the quarter (32.7%).
Decreases
- The most significant negative contribution, on a market capitalisation weighted basis, came from Envestra. Its share price decreased by 5.1% over the quarter.
There were no Initial Public Offerings or additions or removals to the Deloitte SA E&R Index for the 31 October 2011 quarter.
The Index report also features articles of interest to the energy and resources sector, including an overview of the Federal Government’s clean energy legislation which comes into effect on 1 July 2012.
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Deloitte South Australian Energy & Resources Index outperforms S&P/ASX benchmarks
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