The State of the Deal and the Deloitte Queensland Index

Analysis

The State of the Deal and the Deloitte Queensland Index

June 2021

Welcome to The State of the Deal including the 189th edition of the Deloitte Queensland Index, a review of Queensland listed companies on the Australian Securities Exchange (ASX).

A landmark achievement in Q1 2021 with ASX listed companies on the Deloitte Queensland Index exceeding $100 billion at Mar-21, the highest month end market capitalisation on record for the State and representing a x5 increase since the inception of the Deloitte Queensland Index in 2002.

In Q1 2021, the Queensland economy has continued to rebound from the onset of COVID-19 with unemployment falling, consumer confidence reaching pre-COVID levels and business confidence reaching its highest level in three years.

Whilst there can be cautious optimism for further improvements in the Queensland economy, supported by employment in the state expanding by more than 30,000 jobs (relative to a year ago) and net interstate migration to Queensland being at a 20-year high, there are certain risks which may impact growth potential. Tensions with China (impacting coal exports), the lack of international tourists/students, the end of key government support programs and possibility of further lockdowns all pose real risks for the state in recording sustained economic growth.

The State of the Deal and the Deloitte Queensland Index - June 2021

Key takeaways for the March 2021 quarter:

  • The Deloitte Queensland Index increased  by 3.5% in Q1 2021 to $101.6 billion at March 2021 driven in part by:
    • reduced levels of loan deferrals
    • favourable investor sentiment regarding demand for lithium based products
    • continued recovery in the travel and entertainment sectors
    • significant M&A transactions including Bank of Queensland's acquisition of Members Equity Bank for $1.3 billion (funded via secondary capital raising).
  • Market capitalisation of Queensland listed companies has increased by more than five times that at inception ($101.6 billion at Mar-21 vs $18.5 billion at Sep-02)
    • Since inception in September 2002, the Deloitte Queensland Index has outperformed most major global indices, such as the FTSE 100 and S&P/ASX All Ordinaries, and has weathered the storm of the GFC and COVID-19 pandemic.
    • Market capitalisation has increased $83.1 billion since September 2002 with 60% of the increase ($49 billion) attributed to the listing of 19 major companies in the region.
  • Queensland is clearly seen as an attractive corporate hub, with
    • an increasing number of listed companies setting up in the State
    • the State attracting greater population growth (41.0% from 2002 to 2020) compared to the national average (31.4%)
    • the State attracting the highest net domestic migration of any Australian State or Territory, including Victoria and New South Wales.
Deloitte Queensland Index Top 100 Companies - March 2021

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