Deloitte South Australian Index
Strong start to FY18
02 February 2018: The Deloitte South Australian (SA) Index continued its outperformance of the S&P/ASX 200, with performance for the first six months of the 2018 financial year rankings as one of the strongest in the Index’s history.
The absolute total market capitalisation of the state’s 66 listed companies increased by $5.9 billion during the December quarter, an increase of 21%.
Index newcomer Buddy Platform Limited was a standout over the December quarter, enjoying a 22.5% increase in share price. The ‘Internet of Things’ company that recently relocated its head office to Adelaide has seen growing investor sentiment following the release of the Buddy Ohm, a device dubbed the ‘Fitbit for Buildings’ and used for monitoring the consumption of building resources.
Beach Energy Limited performed strongly over the period, recording a share price increase of 50.9% following the $1.6 Billion acquisition of Lattice Energy. Elders Limited was also in favour with investors over the December quarter, with the company’s share price increasing by 68.5%.
Beach Energy and Elders join a cohort of SA-based firms that have successfully executed turn-around strategies in recent years and whose share prices have responded positively. Others include Codan Limited, which overcame counterfeiting issues with its range of metal detectors, and Clean Seas Seafood Limited, which prevailed over fish health and oversupply troubles.
SA Index & S&P/ASX 200 performance to 31 December 2017
Deloitte South Australia Financial Advisory Lead Partner, Steve Adams said: “The Deloitte SA Index has started the 2018 financial year with one of its strongest recorded performances, led by companies within the energy and materials industry sectors, and on the back of the successful turnaround of several South Australian businesses”.
“The dominant exposure within in SA ASX-listed community is companies within the energy and materials industry sector. With improving sentiment, and capital being attracted back into the sector, the Index has enjoyed a strong start to FY2018.
“This strong performance however, should not overshadow the strong turn-around witnessed by a number of SA companies that have been significantly challenged in recent years.”
Largest positive contributions to the SA Index in the December quarter 2017
Largest share price increases in the December 2017 quarter
Major South Australian ASX-listed company movements
The three largest increases on a share price basis for the December quarter were:
- Pepinnini Lithium Limited – increased 412.5%, from $0.016 to $0.082 per share
- Thor Mining PLC – increased 306.7%, from $0.015 to $0.061 per share
- Papyrus Australia Limited – increased 257.1%, from $0.007 to $0.025 per share.
There were no new Index entries in the December quarter.