Deloitte SA Index outperforms ASX 200 in June quarter 2016 has been saved
Deloitte SA Index outperforms ASX 200 in June quarter 2016
Reverse takeovers complement structural transition in South Australia
25 August 2016: The Deloitte South Australian (SA) Index increased by 3.5% in the 2016 June quarter, outperforming the ASX 200 for the same quarter, which saw a 3.0% increase.
The total market capitalisation of the state’s 64 listed companies increased by $1.73 billion (7.5%), from $23.06 billion to $24.79 billion.
Deloitte Financial Advisory’s South Australia lead partner Stephen Adams said: “Both indices performed well in April and May before recording declines in June in line with global markets.”
Throughout the 12 months to 30 June 2016, a number of South Australian listed companies have entered and exited the Deloitte SA Index via reverse takeover. The trend is underpinned by sustained declines in global resource markets that have resulted in reduced mining investment and prompted a tilting of capital to momentum sectors such as food, healthcare and technology.
Adams said: “We anticipate reverse takeovers will continue to be a viable option for aspiring ASX companies, as the relevant pools of capital continue to provide strong valuation support for companies exposed to Australia’s next waves of growth, namely agribusiness, tourism and international education.”
“It’s expected that changes in South Australia’s current economic composition will reflect the state’s relative competitive advantage in the next and future waves of growth, offsetting declines in manufacturing and providing an environment for which innovative South Australian companies can attract capital for expansion,” Adams said.
Major South Australian ASX listed company movements
Adelaide Brighton Limited was the biggest positive contributor to the Index with its share price increasing by 9.9%, and market capitalisation to $3.62bn.
On an absolute share price performance basis, the companies that recorded the largest percentage share price increases for the three months to 30 June 2016 were:
- Pepinnini Minerals Limited, which increased by 342.9%, from $0.007 per share to $0.031 per share
- Magnetite Mines Limited, which increased by 187.5%, from $0.016 per share to $0.046 per share
- Flinders Mines Limited, which increased by 100%, from $0.013 per share to $0.026 per share.
Companies that recorded the largest percentage share price decreases were:
- Petratherm Limited – down 42.9% (market capitalisation of $3.1m)
- Sundance Energy Australia Limited – down 41.2% (market capitalisation of $62.7m)
- Core Exploration Limited – down 35.3% (market capitalisation of $5.96m).
There were no new companies added to the Index in the June 2016 quarter, and one, iBosses Corporation Limited, left with a change of registered office to Victoria.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 225,000 professionals, all committed to becoming the standard of excellence.
About Deloitte Australia
In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia’s leading professional services firms, and winner of both the Australian Financial Review/CFO Audit Firm of the Year and Accounting Firm of the Year awards 2013, Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 6,000 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. For more information, please visit Deloitte’s web site at www.deloitte.com.au.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Touche Tohmatsu Limited
© 2016 Deloitte Touche Tohmatsu