Queensland Energy and Resources Index
Issue 10, June 2011 Quarter Edition
Welcome to Issue 10 of the Deloitte Queensland Energy & Resources Index (Deloitte Qld E&R Index), a review of Queensland companies listed on the Australian Securities Exchange (ASX) within the energy and resources industries. A summary of market movements and the quarterly league table can be viewed in the document below.
During the June 2011 quarter, the Deloitte Qld E&R Index increased 2.4%, while the ASX All Ordinaries decreased 5.5% over the same period. In the 12 months to 30 June 2011, the Deloitte Qld E&R Index decreased 0.1%, compared with a 7.7% increase for the ASX All Ordinaries.
The June 2011 quarter was difficult for financial markets, but especially for energy and resources markets. Generally weak market sentiment was abundant throughout the quarter. This was primarily driven by continued weakness in the US recovery, concern over the US fiscal position, monetary and economic instability in the Eurozone, as well as a wave of uprisings in Middle Eastern states. Of particular concern to resources markets was the slowing growth in Chinese manufacturing and the weakening Chinese trade balance, as the Chinese Government continue to stem high levels of credit growth. The sensitivity of Queensland mining companies to changes in Chinese demand is not lost on financial markets. Despite a surge in industrial production numbers late in the quarter, the vulnerability of Asian demand was evident following Japan's devastating March earthquake, with coal companies having to accept considerable discounts in quarterly prices for their products as a result.
There are currently 96 companies listed on the Deloitte Qld E&R Index. 29 companies enjoyed an increase in market capitalisation during the quarter, while 64 companies decreased and the remainder were steady.
In this edition, we profile some of the key issues currently affecting energy and resources firms. We also feature commentary regarding a number of issues currently impacting the wider sector:
- Market movements
- Shipping and Commodities
- An unsteady surface
- Tax: MRRT exposure draft legislation released.