According to the Deloitte Queensland Index, the overall value of listed Queensland companies grew by just 1 per cent in the quarter to be worth $121 billion. It found that 40 Queensland companies increased their market capitalisation while 85 decreased and 30 showed no change.

The collapse in value for the coal miners was more than offset by growth in the technology, media and telecom sector which grew by $2.4 billion led by NEXTDC which added $1.7 billion by itself.

The best performers in terms of percentage movements were True North Copper (+1924 per cent), Impedimed (+108 per cent), Mastermyne (+96 per cent),  Megaport (+75 per cent), Metro Mining (+69 per cent) and KGL Resources (+66 per cent).

The value of Queensland mergers and acquisitions in the quarter was $8.7 billion, an 11 per cent decrease from the corresponding period in 2022.

“Recent data suggests that demand growth slightly accelerated in Queensland, though underperformed in comparison to the national economy,” Deloitte said.

“Increased demand was largely driven by increased private and public investment, but was held back by reduced consumption expenditure by both households and government.

“Further, the price of Queensland’s main export commodities, such as metallurgical and thermal coal, have tumbled – though prices remain above historical levels. These lower prices have been partly
offset by an increased volume of trade brought about by relaxed restrictions imposed by China.

“While prices are projected to fall, high trade volumes and changes in how Queensland collects coal royalties have led to the largest budget surplus recorded of any state or territory government to date.

“However, with coal prices projected to fall into the future, it remains to be seen whether this proves to be a pattern or just be a one-off fiscal windfall.

“Overall, the Sunshine State is facing several challenges that are slowing economic activity and growth. Households are feeling the pinch, and businesses are wary of a precarious future.

“However, commodity trade volumes remain strong in the face of falling prices and, combined with cost of living relief and strong public investment, Queensland’s economy has more fight to put up yet.”

Deloitte said its index showed the value of Queensland’s listed companies had grown 9.3 per cent in the past 12 months, compared with the 9.7 per cent achieved by the All Ordinaries Index.”

There were big gains made during the quarter. Suncorp increased by $1.7 billion which was based on news if a deal with the State Government relating to its banking merger with ANZ.

Allkem also jumped $2.6 billion in value through its merger with Livent. NEXTDC

“The second quarter 2023 increase in the Deloitte Queensland Index is mainly attributable to robust performances in the TMT, Healthcare, and Industrials sectors,” Deloitte said.

“Allkem Limited, a Queensland-listed Lithium company within the energy and resources sector, reported the largest gain in dollar terms with an increase of $2.6 billion (34.9 per cent) in market capitalisation in the second quarter 2023, following the announcement of a proposed merger with NYSE-listed Livent Corporation.

“Despite signs that the M&A market is continuing to moderate from the boom levels of 2021 and 2022, the outlook for deal activity in Australia is proving resilient to the headwinds of global and local economic conditions.

“In particular, the sixth edition of our Deal in Focus: Heads of M&A report revealed that nearly 90 per cent of Australian and New Zealand M&A leaders expect the number of deals they pursue to increase or remain stable over the next 12 months. In particular, private equity funds and super funds tend to be more resilient in fragile times, backed by significant amounts of dry powder available to deploy.