South Island listed companies outperformed the wider NZX 50 during the second quarter of 2008. The South Island Index achieved an overall gain of 3% in the second quarter of 2008, increasing its overall value by $110 million to a total market capitalisation of $3.80 billion. In contrast, the NZX 50 index was down almost 8%.

Overall, despite the 3% gain in the SI Index, a total of 61% of the 33 companies in the Index recorded a reduction in their market capitalisation this quarter. Although there are fears that New Zealand may be entering a recession, it is not all doom and gloom, particularly considering the relatively strong performances of companies such as PGG Wrightson, NZ Farming Systems Uruguay and Cavotec MSL Holdings.

Despite a 7% decline in market capitalisation, Ryman Healthcare remained the South Island’s largest listed company ($795.0m) as at 30 June 2008, followed by PGG Wrightson ($723.2m) and NZ Farming Systems Uruguay ($425.0m). Of the top 20 companies in the South Island Index, NZ Farming Systems Uruguay recorded the largest increase in market capitalisation soaring by 24.3% in the quarter. PGG Wrightson was hard on its heels with an increase of 21.3% in the same period.

The Deloitte South Island Index is released throughout the year, tracking the performance of South Island companies on a quarterly basis. The Index provides investors, companies and the public with an interesting perspective on the financial markets of the Mainland.

If you would like to speak with someone about the Deloitte South Island Index, please contact Paul Munro.