About $10 billion was added to the value of Deloitte’s Queensland index.
A report from the company also said there was now a shift away in investor sentiment from companies that did well in the pandemic to those in cyclicals like energy, resources, banking and financial services.
It said the local merger and acquisition activity included Terra Firma Capital’s $700 million sale of Consolidated Pastoral as well as Quadrant Private Equity’s sale of Qscan.
One of the best performing stocks was Orocobre, a Brisbane based lithium producer. Its shares jumped almost 90 per cent in the quarter.
Eagers also jumped 45 per cent.
Deloitte partner and M&A leader Rob McConnel said the Queensland results reflected a recovery in investor confidence.
“While demand for services in the tech, media and telco sector increased throughout 2020, particularly due to the substantial growth in virtual services and online sales as businesses seek to shift their business models, market capitalisation and share prices in the sector stabilised,” he said.
He said there were 92 deals in the December quarter, up from 63 in the previous quarter.
“Looking ahead, the state’s Achilles heel remains its persistently high unemployment,” he said.
“Without addressing the structural issues in the economy that are keeping these elevated, a sustained recovery will be more difficult for Queensland.
“That said, Queenslanders deserve to have a spring in their step. The health response to the pandemic has been strong and that’s meant businesses have been able to reopen earlier and to a greater extent.
“That puts the state’s economic recovery several steps in front of some other parts of the country and in even more in front of the rest of the world.”Jump to next article