South Island listed companies showed a 16.9% gain in the quarter to 30 September.
The 19th edition of the Deloitte South Island Index, for the quarter to 30 September 2012, was up by $782 million or 16.9% in market capitalisation, rebounding from a sluggish second calendar quarter. The quarter’s stellar results see the Index up 18.6% during the year to 30 September 2012 with total market capitalisation now standing at $5.41 billion.
Paul Munro, a corporate finance partner in Deloitte’s Christchurch office, says that the third quarter of 2012, generally speaking, paints a rosy picture for the South with market capitalisation appreciation in 23 of the 30 companies listed on the Index.
The Deloitte South Island Index’s 16.9% growth outperformed all benchmark indices during the September quarter, with the NZX 50 up 12.8%, the ASX All Ords up 6.6% and the Dow Jones up 4.3%. The Index’s year to 30 September 2012 increase of 18.6% is second only to the Dow Jones’ increase of 23.1% during the same period.
“The performance of the Index in this quarter suggests that low interest rates in New Zealand are increasing the demand for shares as investors look for higher returns than they can currently achieve on bank deposits,” Mr Munro says.
“One would assume that the worst of the global financial crisis is over in the South and many are hopeful that the positive trend experienced over the quarter will continue.”
Dare we hope that this really does mean the worst of the GFC is over and the positive trend will continue?
. . . All eight industry sectors posted positive movements in the quarter to 30 September 2012 led by Biotechnology, which was the standout performer in percentage terms, gaining 40% and ending the September quarter on a record high since the inception of the Index.
The Manufacturing and Distribution and Property sectors, with growth of 13.1% and 17.6% respectively, also achieved their highest monthly closing values since the Index commenced in December 2006.
Growth of 13.1% in manufacturing, do Opposition MPs know about that?
Instead of manufacturing their own manufacturing crises they should be looking at and learning from these businesses which are growing.
The full report is here.
GFC has not really started so a false dawn perhaps.
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