The Deloitte South Island Index continues to progress
South Island listed firms collectively grew their market capitalisation by $2,190.8 million (8.8%) in the quarter ending 30 September 2018.
Christchurch, 8 November 2018 – The Deloitte South Island Index has built on its second quarter growth and recorded growth of $2,190.8 million (8.8%) in the quarter to 30 September 2018.
The Deloitte South Island Index’s 8.8% growth was outperformed by the Dow Jones, which recorded 9.0% growth and led the benchmark indices tracked. The S&P/NZX 50 Capital Index recorded the next largest increase after the Deloitte South Island Index, growing by 3.4 % during the quarter with the ASX All Ords increasing by 0.6% in terms of market capitalisation for the 30 September 2018 quarter.
Skyline Enterprises was the fifth company on the Deloitte South Island Index to achieve market capitalisation greater than $1,000.0 million during the 30 June 2018 quarter. However, during the 30 September 2018 quarter a 4.3% decline resulted in them falling below the $1,000.0 million benchmark.
The collective increase of the remaining four companies whose market capitalisation is greater than $1,000.0 million (the “Top 4” companies) was $2,020.1 million (10.8%) for the 30 September 2018 quarter.
Ryman Healthcare recorded the largest increase in market capitalisation, increasing by $1,015.0 million (17.0%), followed by EBOS Group $687.9 million (21.5%). Meridian Energy recorded a $422.9 million (5.3%) increase for the September quarter. Synlait Milk’s golden run paused during the September 2018 quarter as they suffered the largest decline (in dollar terms), falling by $105.7 million (5.2%).
Corporate finance partner Scott McClay says the Top 4 companies in the Index – Ryman Healthcare, Meridian Energy, EBOS Group and Synlait Milk – continue to provide the Index with significant weight.
“While the September 2018 quarter saw these four companies, each with market capitalisations in excess of $1 billion, collectively grow 10.8% in market capitalisation, it was particularly pleasing to see the next tier of companies in the Index also continuing to perform in the quarter.” says Mr McClay.
“Companies 4 to 15 on the Index (all with market caps above $100 million) collectively experienced 3.1% growth in terms of market capitalisation during the quarter, with 8 of the 11 recording growth, providing further resilience from the backbone of the Mainland economy.”
Outside of the Top 4, the Index’s best performers (in percentage terms) were Energy Mad whose market capitalisation increased 114.3% ($1.6 million) during the September quarter, followed by BLIS Technologies who increased their market capitalisation by 38.2% ($5.5 million).
The most significant declines (in percentage terms) came from SeaDragon, who dropped 33.3% ($4.5 million), followed by Smiths City Group who fell by a 22.9% ($4.7 million) and Scott Technology who dropped 12.6% ($33.4 million).
The Deloitte South Island Index’s progress was seen in five of the seven sectors. The biggest increase was in the Manufacturing & Distribution Sector, which increased by 20.3% and at the other end of the scale the Primary Sector recorded the largest decline for the quarter, falling 1.6%.
To see the full Deloitte South Island Index quarterly report, go to www.deloitte.com/nz/southislandindex.