WA stocks deliver 400 per cent growth in last decade

This compares very positively against other indexes such as ASX (59 per cent), S&P 500 (-15.1 per cent), FTSE (-11.6 per cent) and NIKKEI (-32.3 per cent).
“The boom in value in Western Australian stocks is largely underpinned by strong commodity and precious metal prices,” said Deloitte managing partner Keith Jones.
“The commodity prices have driven value into many established companies and encouraged massive investment in expanding current projects and the development of new projects in the State.
“Not only have these projects created direct value but the remarkable growth has overflowed into the service sector providing significant opportunity across the wider Western Australian market,” he said.
Not all companies have flourished in the strong market conditions with only three of the top ten companies in April 2000 surviving to make the top ten in 2010. Woodside and Wesfarmers have remained first and second in the State with growth in capitalisation of 402 per cent and 815 per cent respectively.
Western Australian companies now represent 16.4 per cent of the value of the ASX up from only 5.2 per cent in 2005.
“Shareholder value growth has occurred across the market and reflects the benefit of combining entrepreneurial flair with capital and development opportunities,” said Jones.
Paladin Energy and Equinox Minerals are the fastest growing companies in the Deloitte WA Index and have grown in capitalisation by 35,757 per cent and 34,096 per cent respectively over the decade. In April 2000, these were small explorers capitalised at Paladin A$8 million and Equinox A$7 million respectively and were valued at A$2.8 billion and A$3.7 billion at April 30th, 2010.
Key commodity’s such as Iron ore, copper, uranium and lead have also risen by more than 300 per cent over the decade. Gold has increased by 331 per cent over the same period.
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