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Deloitte South Australian Index
Strong start to FY18
27 October 2017: The Deloitte South Australian (SA) Index increased by 4.2% in the September 2017 quarter, outperforming the S&P/ASX 200, which decreased by 1.3%. Following an uplift in July, the SA Index experienced declines in August before recovering in September, with the S&P/ASX 200 declining in all months of the September quarter.
The total market capitalisation of South Australia’s 66 listed companies increased 12.4% in the September quarter, from $25.12 billion to $28.24 billion.
The largest increase in market capitalisation came from Santos Limited, which recorded an increase of $2.1 billion (32.7%), rebounding from declines earlier this year. Mayne Pharma Limited recorded the largest decline in market capitalisation in the September quarter, down $629 million following declines in market capitalisation in the June quarter.
Deloitte South Australia Financial Advisory Lead Partner, Steve Adams said: “This was a strong start for the new financial year, with key drivers of growth in the September quarter being oil and gas prices, as well as positive end-of-year earnings announcements.”
Underpinned by rising oil and gas prices the market capitalisation of energy operators within the Deloitte SA Index increased by $2.6 billion, or 33.1%.
- Santos Limited highlighted stronger cash flows and more positive sales volume outlooks as recent drivers of value
- Beach Energy Limited recently announced what has been described as a ‘transformational’ $1.6 billion acquisition of Lattice Energy Limited.
Pharmaceuticals, Biotechnology & Life Sciences
- Highlighting South Australian research and development, Bionomics Limited enjoyed an 18.8% increase in share price, displaying continued support for the firm’s work in cancer and central nervous system drugs. Improved financial results and positive sentiment toward a new substantial shareholder further supported the share price increase.
Food Beverage & Tobacco
- The share price of recently renamed Clean Seas Seafood Limited reached its highest level in over 24 months, signalling the success of a turnaround strategy implemented during FY17.
Major South Australian ASX-listed company movements
The three largest increases on a share price basis for the September quarter were:
- Papyrus Limited – increased 75%, from $0.004 to $0.007 per share
- Archer Exploration Limited – increased 72.2%, from $0.036 to $0.062 per share
- Lawson Gold Limited – increased 56.9%, from $0.051 to $0.08 per share.
There were two new entries to the Index in the September quarter:
Buddy Platform Limited – entered by via a change of registered office in August. Buddy Platform Limited produces a software package that can be used to integrate Internet of Thing (IoT) devices to provide insights through data analytics.
Strike Energy Limited – also entered via a change of registered office in September. The oil and gas producer has its primary operations in the Southern Cooper Basin.