West African Resources Limited (WAF) Plunged -1.282% on Dec 7

December 7, 2017 - By Linda Rogers

Shares of West African Resources Limited (ASX:WAF) last traded at 0.385, representing a move of -1.282%, or -0.005 per share, on volume of 171,297 shares. After opening the trading day at 0.39, shares of West African Resources Limited traded in a close range. West African Resources Limited currently has a total float of 578.70 million shares and on average sees 1.02M shares exchange hands each day. The stock now has a 52-week low of 0.177 and high of 0.445.

S&P/ASX 200: Directing Asian Economy Growth

CG Watch has recently named Australia as one of the Asian nations with the best corporate governance, which is essential in carrying out national economic growth prospects. The Australian Securities Exchange (ASX) is the perfect reflection of Australia’s thriving national economy.

It includes companies with perfect liquidity like West African Resources Limited. The ASX is one of Asia’s leading stock exchanges. As of 2014, it has a market capitalization of A$1.60 trillion with over 2,000 companies listed on it. Its benchmark index is the S&P/ASX 200, which weighs its top 200 stocks on a free-float market capitalization basis.

About the S&P/ASX 200

The S&P/ASX 200 was launched in April 2000, starting at 3,133.30 points. Regardless, it continues from the history of the previous Australian benchmark index, All Ordinaries, which was founded in January 1980. Consequently, the S&P/ASX 200 holds an all-time low of 1,358.50 points, which was recorded in November 1992; and an all-time high of 6,828.70 points, which was posted in November 2007.

The S&P/ASX 200 first touched the 6,000 mark in February 2007 as investors began resorting to safe-haven markets such as the ASX with the looming threat of the 2008 Global Financial Crisis. An ability to transform assets into cash as in case of West African Resources Limited was highly appreciated by nervous traders. Australia has always been an ideal market for investors because of its low interest rates and compelling corporate governance. Having low interest rates means that investors can better access capital through loans.

S&P/ASX 200 Composition

The components of the S&P/ASX 200 are reviewed by the Index Committee four times a year, particularly every 16th of March, June, September, and December. The Index Committee is a panel with five members that reviews the companies listed on the ASX, the 200 most active of which are then included in the S&P/ASX 200. Sometimes, depending on several factors such as market capitalization, liquidity, among others, less than 200 companies make it to the S&P/ASX 200. And this is the double reason to be proud for such companies as West African Resources Limited.

In the latest review of the S&P/ASX 200, the Index Committee had dropped six companies and had added six new companies on the coveted index.

As a free-float, market-capitalization-weighted index, the S&P/ASX 200 is quarterly adjusted with respect to the stock prices of frequently traded stocks. This means that stocks held by the government, venture capitalists, and the likes are not reviewed by the Index Committee.

The S&P/ASX 200 has various sectors with the financial sector being the largest as it makes up roughly 40% of the index. It makes up almost 80% of the overall market capitalization in Australia. Representing the top 200 stocks on the ASX, the S&P/ASX 200 is a reliable indicator of the Australian economy.

Needless to point out, investing in the ASX is worth considering. With a cheap borrowing environment complemented by a hot equity market, investors can realize their long-term goals by investing in Australia. At a time when the Asian economy is immensely growing, it is just right to bet on Australia’s growth.

More news for West African Resources Limited (ASX:WAF) were recently published by: Fool.com.Au, which released: “Why the West African Resources Ltd share price rocketed 27% today” on June 07, 2017. Juniorminingnetwork.com‘s article titled: “West African Resources Drills 13.5 Metres of 18.21 g/t Gold at Sanbrado Project” and published on November 29, 2017 is yet another important article.

West African Resources Limited engages in the identification, acquisition, exploration, assessment, and development of mineral resource projects in West Africa. The company has market cap of $222.80 million. It primarily holds interests in the Tanlouka gold project covering an area of approximately 115 square kilometers; and the Boulsa gold project that are located in Burkina Faso. It currently has negative earnings.

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