The Deloitte South Island Index back in stride
South Island listed firms collectively grew their market capitalisation by $3,237.5 million (13.7 percent) in the quarter ending 31 March 2019
Christchurch, 8 May 2019 – The Deloitte South Island Index made a positive step to finish the first quarter of 2019 up $3,237.5 million (13.7 percent), after a disappointing end to 2018.
All the other benchmark indices tracked also recorded increases over the same period with the Dow Jones recording the next highest increase at 11.2 percent. This was followed by the S&P/NZX 50 Capital Index increasing by 10.5 percent and the ASX All Ords increasing by 9.7 percent in terms of market capitalisation during the quarter ending 31 March 2019.
Corporate finance partner Scott McClay says the “Top 4” companies collectively increased market capitalisation by $3,333.9 million (17.8 percent) during the March 2019 quarter, with all four participants recording increases.
“The market appeared to respond favorably to half-year reporting announcements from a number of the largest companies on the Index during the period,” says Mr McClay
“Meridian Energy recorded the largest percentage increase of the Top 4 participants, increasing by $1,999.2 million (22.9 percent), followed by Ryman Healthcare who recorded a $755.0 million (14.1 percent) gain. EBOS Group and Synlait Milk both recorded similar market capitalisation increases on a dollar basis however on a percentage basis Synlait Milk finished ahead increasing by $286.8 million (17.8 percent) and EBOS Group finished up $292.9 million (9.6 percent).”
On the other hand, the smallest 10 companies collectively declined, recording a $14.9 million (8.1 percent) decrease in market capitalisation, during the quarter ending 31 March 2019.
Outside of the Top 4, the Index’s best performers (in percentage terms) were Foley Wines Limited (up 17.1 percent), Pharmazen (up 14.2 percent) and New Zealand King Salmon Investments (up 13.6 percent) during the March 2019 quarter.
Conversely, the most significant declines outside the Top 4 during the quarter in percentage terms were SeaDragon (down 33.1 percent), Chatham Rock Phosphate (down 20.0 percent) and Silver Fern Farms (down 18.9 percent).
Four out of the seven sectors tracked recorded gains, with the Energy & Mining sector recording the largest increase of 22.9 percent in market capitalisation. At the other end of the scale, the Retail sector had a slower start to 2019, recording a 17.6 percent decrease in market capitalisation, followed by the Other and Technology Sectors which also declined by 7.1 percent and 1.7 percent respectively.
To see the full Deloitte South Island Index quarterly report, go to www.deloitte.com/nz/southislandindex.