The Deloitte South Island index rocketed upwards in the three
months ended September, gaining an astonishing $1.6 billion,
or up 22.7%, Deloitte corporate finance partner Paul Munro
It was the largest quarterly growth percentage since the
inception of the index in 2007.
''The performance of the index over the last quarter has been
nothing less than remarkable.
''In particular, the significant growth from Ebos Group,
after its strategic Australia acquisition, clearly
demonstrates South Island companies can successfully expand
into overseas markets and compete in the current global
The latest quarterly results showed the index up $3.02
billion (53.6%) for the year to September 30, with total
market capitalisation now at $8.66 billion - another high
since the inception in 2007.
The South Island index outperformed increases in the NZX-50
of 23.5%, the ASX All Ordinaries of 18.4%, and the Dow Jones
of 12.6%, Mr Munro said.
The quarter also saw the re-emergence of the primary sector
in positive territory, a pleasing result given the importance
of the sector to the South Island economy, he said.
The principal architects of the revival were the dairy duo of
Synlait Farms and Synlait Milk, as investors scrambled for a
share in the New Zealand dairy industry.
PGG Wrightson's recovery provided a helping hand as the
company was seemingly unfazed by the recent adverse weather
conditions and Fonterra's botulism scare.
The index's top performer for the quarter was Ebos, which
gained a ''phenomenal'' $854.5 million in market
capitalisation, or 135.8%. That followed the issuance of more
than 81 million shares after finalising the acquisition of
the Symbion Group in July.
On the day of the share issue, the market capitalisation of
Ebos grew by $770.9 million - more than doubling its size.
''The dramatic move by Ebos cements its position in second
place on the index,'' Mr Munro said.
Ryman Healthcare's share price continued to climb in the
quarter, increasing another 58c, or 9.1%, in the period and
growing its market capitalisation by $290 million.
Kathmandu Holdings and newcomer Synlait Milk both had strong
The largest fall in the quarter came from Lyttelton Port
which lost $35.7 million in market capitalisation, a fall of
12.3%, after having a stellar second quarter of the year, he
Lyttelton Port announced its annual results which noted the
continual challenges it faced regarding its earthquake
insurance claims, now three years old.
Dunedin-based Pacific Edge lost ground but recent share price
rises should see it regain that ground in the December
quarter. In September, the biotechnology company had market
capitalisation of $148.6 million. Yesterday, its market
capitalisation was $196.13 million, a rise of more than 30%.
Six of the eight industry sectors posted positive movements
in the quarter, led by the manufacturing and distribution and
primary sectors. The two sectors undergoing declines during
the quarter were port and biotechnology, which fell 7.1% and