Sharemarket darling Ryman Healthcare has underpinned a fourth consecutive quarter of market capitalisation gains for South Island companies and the overall Deloitte index is up 47% for the year to June.
The index, which tracks the performance of 31 listed companies with South Island operations, avoided the traditional seasonal winter slowdown period.
Underpinning the best-performing sector by percentage, bio-tech, was Dunedin-based Pacific Edge which has just begun full commercialisation and is releasing its bladder cancer diagnostic tool in the United States, having spent about $35 million in research and development.
Corporate finance partner at Deloitte's Paul Munro said the companies achieved sustained growth for every quarter of the year, gaining a ''remarkable'' $2.16 billion, or 47.1%, in market capitalisation in the full year to June 30, ''That strength underpins the performance over the past 12 months across a number of sectors, resulting in investors scrambling for shares in established companies like Ryman Healthcare, Kathmandu and Skyline Enterprises, as well as creating a positive environment for new capital raising, as seen in the recent successful share issues for Moa Group, SLI Systems and Ebos Group,'' Mr Munro said in a statement.
He said 21 of the 31 companies grew during the past 12 months and the South Island Index's 47.1% annual growth outperformed the NZX 50's 30.6%, the Dow Jones' 15.8% and the ASX All Ords' 15.5% gain during during the year.
''The investments in the Christchurch rebuild and the resilience of the South Island's primary sector continue to underpin the performance of the wider South Island economy, creating a solid platform for continued growth,'' Mr Munro said.
The star sector performer, by percentage basis, was the bio-technology with a ''remarkable'' 171.9% growth rate. Every company in the sector had achieved positive results over the past year.
''However, the vast majority of the sector's growth was due to the $111.0 million, 207.5%, gain in market capitalisation by Pacific Edge,'' Mr Munro said.
''The performance of the Deloitte South Island Index during the past 12 months is a reflection of investors' recognition of southern resolve and ingenuity to overcome challenges and succeed in trying economic conditions,'' Mr Munro said.
''Every sector except energy and mining gained market capitalisation during the year.''
The largest market capitalisation fall was West Coast coking coal mine developer Bathurst Resources, down 74.4%, amid multiple, ongoing legal legal proceedings against its resource consents.
Mr Munro said Silver Fern Farms and NZ Windfarms both had a disappointing year, down respectively 41.2% and 51.5 %.
