incredible run of Ryman Healthcare's share price again helped
boost the Deloitte South Island Index, the latest quarterly
index review shows.
The index started the year on a positive note, gaining $699.8
million in the three months ended March, up 6.4% and setting
an ''encouraging tone'' for the year ahead, Deloitte partner
Paul Munro said.
Broadly, a company is included in the index where its
registered office is in the South Island and/or a substantial
portion of its operations are focused in the South Island.
The index is compiled using information provided by the NZX
Breaking down the growth by sector, Mr Munro said the
property sector gained 11.2% ($450 million) in the quarter,
supported by the manufacturing and distribution and other
sectors increasing their market capitalisations by $79
million and $78.5 million respectively.
Ryman recorded its 11th success quarterly increase in market
capitalisation, growing by $450 million (11.5%) during the
first quarter, he said.
Ryman's share price rose by 90c over the quarter to $8.75.
During the quarter, the Christchurch-based company signalled
its intention to increase its build rate of New Zealand
retirement homes, announcing its plan to build eight
retirement villages in New Zealand, including five in the
Managing director Simon Challies said the target was to lift
the current New Zealand build rate to 850 units and beds a
year by 2017 to meet increasing demand.
The increase meant Ryman would be building at nearly double
the rate it was five years ago.
The Deloitte South Island index increased by nearly $4
billion, or 50.5%, over the 12 months to March.
The majority of the increase in market capitalisation was
attributable to the rise of Ryman and Ebos Group, Mr Munro
On a percentage basis, the greatest climbers for the past 12
months were Ebos (208%), Dunedin-based Pacific Edge (127%),
and Ryman (73.6%). Overall, 20 of the 33 companies on the
index grew over the 12 months, he said.
Meridian Energy increased its market capitalisation in the
quarter by $150.2 million - a growth rate of 11.5%.
Meridian Energy released its interim results during the
Its before-tax profit was 49.3% above prospectus forecasts,
including $41.2 million of non-cash fair value gains.
Ebos Group reversed its previous quarter's decline with an
$81.2 million gain in market capitalisation to $10.25 per
share - a 5.7% gain.
Both Kathmandu and Heartland New Zealand had strong quarters,
increasing $68.1% (9.7%) and $31.9 million (9.6%) in market
However, Bathurst Resources had a quarter to forget, losing
more than half its value as it dropped $101 million (58.6%)
in market capitalisation during the quarter to March 31.
The fall in share price followed the company's drastic
actions to cut costs and preserve value in its Buller
projects as it awaited approval for its escarpment mine.
Synlait Milk suffered its first quarterly fall after its
first two quarters on the index were positive, he said.
The company dropped 6.1% in market capitalisation during the
quarter, with its share price falling 24c to $3.70 per share.
Another exporter to experience a decline in market
capitalisation was Scott Technology - its share price dropped
40c to $1.50 per share, the equivalent of losing $16.6
million during the quarter.
''The share price consistently decreased over the quarter
with what seems to be investors' concerns about the effect of
the high New Zealand dollar on the company,'' Mr Munro said.