Continued success for the Deloitte South Island Index
South Island listed firms collectively grew their market capitalisation by $2.5 billion (9.0 percent) in the quarter ending 30 September 2019
Christchurch, 18 October 2019 – The Deloitte South Island Index made gains for the third consecutive quarter, with the listed companies collectively growing their market capitalisation by $2.5 billion (9.0 percent) in the quarter ending 30 September 2019.
All the other benchmark indices tracked also recorded increases in market capitalisation over the same period. The S&P / NZX 50 Capital Index increased by 2.8 percent, followed by the ASX All Ords, increasing by 1.5 percent, and The Dow Jones, increasing 1.2 percent.
The ‘Top Four’ companies (each with market capitalisation in excess of $1 billion) collectively increased market capitalisation by $2,204.5 million (9.4 percent) during the September 2019 quarter, with three of the four participants recording gains.
Ryman Healthcare recorded the largest percentage increase of the Top Four participants, increasing by $770.0 million (13.1 percent). This was followed by Meridian Energy, which recorded a $1,153.3 million (9.5 percent) gain in market capitalisation, and EBOS Group, which finished the September quarter up $299.2 (8.0 percent). Meanwhile Synlait Milk recorded a decrease in market capitalisation, falling $18.0 million (1.1 percent).
On the other end of the Index, the smallest 10 companies collectively declined during the quarter, recording a $3.7 million (1.8 percent) decrease in market capitalisation.
Scott McClay, a corporate finance partner in Deloitte’s Christchurch office, is pleased to see the Deloitte South Island Index collectively grow for the third consecutive quarter of 2019.
“Despite a capital return and capital raise during the quarter it is pleasing to see the underlying share prices of the South Island Index perform so strongly relative to the other indices tracked, which has been a consistent feature of the South Island Index since its inception. It is particularly pleasing to see the growth spread across the range of sectors tracked.”
Outside of the Top Four, the Index’s best performers (in percentage terms) were Avida Group (up 40.1 percent), Kathmandu Holdings (up 39.0 percent) and Connexionz (up 32.6 percent) during the September 2019 quarter.
Conversely, the most significant declines of the quarter in percentage terms were PGG Wrightsons (down 55.7 percent) following its capital return during the quarter, SeaDragon (down 50.5 percent) and Smiths City Group (down 14.1 percent).
Six out of the seven sectors tracked recorded gains, with the Retail sector recording the largest percentage increase of 37.3 percent in market capitalisation. At the other end of the scale, the Primary sector recorded a 4.4 percent decrease in market capitalisation in the quarter ending 30 September 2019.
To see the full Deloitte South Island Index quarterly report, go to www.deloitte.com/nz/southislandindex.