For Deloitte WA clients and markets partner Tim Richards, the decline reversed the 4.5% rise for October, which was led by major miners after the positive September quarterly results.
“November saw dismal performance by mining stocks as key commodities endured a further slump in prices, driven primarily by China’s economic slowdown and the continued strengthening of the US dollar,” he said.
Metals and mining companies experiencing falls in their market cap included South32 and Northern Star Resources.
South32’s market cap fell 18.8%, after the poor market sentiment and commodity price declines forced the closure of several manganese operations in South Africa.
Northern Star Reosurces’ market cap was down 12% in-line with the drop in the gold price.
On a positive note, Dacian Gold recorded a 41% increase in its market cap, from $A69 million to $98 million, after the company launched a fully underwritten $25 million equity raising in early November, issuing more than 26 million shares at 69c per share.
In commodities, gold was a key mover, closing the month at $US1064 an ounce, down by 6.8%, its lowest price in five years due to the strengthening US dollar and expectations of an impending lift in US interest rates.
Platinum, hard hit by the Volkswagen emission scandal, was down 15.6%, while palladium was down by 18.6%.
The silver-white metal has been battered by fears associated with China’s predicted slow-down.
Iron ore meanwhile maintained its bearish dive, dropping a further 9.1%, as the Chinese economy holds the commodity to ransom while stock-piles continue to grow.
In the equity markets, stagnant results typified the mood.
The All Ordinaries, FTSE 100 and S&P 500 all fell mid-month, after reports of an oil glut and speculation over rising US interest rates.
However, the situation picked up throughout the second half of November to finish relatively unchanged from the previous month end.
The All Ordinaries fell 1.3%, with Westpac and Commonwealth the big winners with a combined market cap increase of $A11.5 billion, while miner BHP was the biggest loser with a market cap loss of $26.2 billion.
The FTSE 100 was down 0.1%, with BHP falling by £13b, or about $A27 billion, but the S&P 500 bucked the trend and rose by 0.5%.
The Nikkei followed suit, posting an increase of 3.5%.
The top 10 listed companies in the Deloitte WA Index, as of November 30, 2015 were: Wesfarmers, Woodside Energy, South32, Fortescue Metals Group, Iluka Resources, BWP Trust, Navitas, Northern Star, Automotive Holdings Group and Independence Group.
