WA Index

The market capitalisation of Western Australian listed companies rose significantly over the month of March 2022 – up 10% to close at $337.3 billion. While most global markets also saw gains during the month (the S&P 500, Nikkei, and All Ordinaries rose 5%, 4% and 6% respectively), the WA Index outperformed with its double-digit growth.

Download the list of WA’s top 100 listed companies, as of 31 March 2022, explore the sections below, and if you do not currently receive our WA Index, please register to be added to our distribution list.

Highlights:

Commodity review

Performance of WA Index and global indices

WA Index movement

Top performers of the month.

If you have any questions in relation to the Deloitte WA Index please contact Dave Andrews.

Nickel, LNG, zinc, iron ore, coking coal and cobalt were the biggest movers in March, with tin, palladium and platinum the commodities that lost ground over the month.

• Nickel prices closed up 30%, following extremely volatile market conditions which saw LME nickel trading temporarily halted during the month after prices doubled during intra-day trading on 8 March
• LNG finished 27% higher at the close of March on the back of supply issues stemming from the conflict between Russia and Ukraine. Europe has historically relied on LNG supply from Russia, however current sanctions on that country have led to Europe sourcing its LNG elsewhere
• Zinc prices closed out the month strongly, with a 25% gain. The surge was primarily driven by reports that China, a large importer of zinc for smelting, will be easing COVID-19 restrictions, allowing for increased economic activity.
• Coking coal prices ended 16% higher, due to continued supply constraints arising from the conflict between Russia and Ukraine. Russia supplied 70% of Europe’s coking coal, and recent sanctions have resulted in EU countries approaching the global seaborne market for coking coal from other sources
• Iron ore prices continued gains in March, up 14% off the back of strong demand from China. The price reacted positively to reports of potentially easing COVID-19 restrictions in China.
• Cobalt topped off the month 11% higher, with prices increasing amid supply related constraints due to political instability in the Democratic Republic of Congo, a large global supplier of cobalt.

Performance of WA Index and global indices

Top performers of the month

Western Australian top performers over the past month by growth in market capitalisation

AVZ Minerals Limited (ASX: AVZ) saw the largest increase among the top 20 Index participants during March, surging 56% as investors sought value in the company’s lithium project in the Democratic Republic of Congo. Similar clean energy stocks also received strong interest in March.

Liontown Resources Ltd (ASX: LTR) saw a 31% increase in market capitalisation off the back of positive drill results confirming potential for incremental extension of the resource estimate at its Buldania Lithium Project in the eastern Goldfields. Results indicated shallow lithium mineralisation outside the current resource estimate, with further drilling planned.

IGO Limited’s (ASX: IGO) market capitalisation increased 29%, following a flurry of announcements, including discontinued discussion with Glencore regarding that company’s CSA copper mine in western NSW, and exploration updates at JV projects, including Brocken Hill Ni-Cu-PGM in NSW, and Fraser Range in WA.

The top Deloitte WA Index Movers and Shakers in March were:

Ardea Resources Limited (ASX: ARL) burst into the WA Index, with its market capitalisation up 195% in March following a suite of announcements regarding high-grade nickel-cobalt, rare earth elements confirmed at its Kalpini Nickel Project near Kalgoorlie, and the awarding of major project status by the federal government for its Kalgoorlie Nickel Project.

Australian Vanadium Limited’s (ASX: AVL) market capitalisation surged 142%, following the announcement of a signed letter of intent with Tianzhu Steel for offtake of iron titanium to be produced in AVL’s Australian Vanadium Project in WA.

Arafura Resources Limited (ASX: ARU) saw a 92% increase in market capitalisation over the month, following the awarding a $30m federal manufacturing grant which will contribute to the construction of a rare earth separation plant at its Nolans Project in the Northern Territory.

If you don’t currently receive our WA Index, you can register to be added to our distribution list.

If you have any questions in relation to the Deloitte WA Index please contact Dave Andrews.