Pacific Edge rewarded for surging stock with entry to NZX 50 as Hallenstein leaves
Pacific Edge [NZX: PEB], the bladder cancer test developer whose shares have soared in the past year, will join the NZX 50 Index this month, replacing retailer Hallenstein Glasson Holdings, whose stock has tumbled in the same period.
Hallenstein's share price has declined 44 percent in the past 12 months while Pacific Edge has surged 118 percent, outpacing the benchmark index's 17 percent rise. Pacific Edge's market cap has grown to $445.1 million while Hallenstein's is at about $184 million.
Shares of Pacific Edge extended their gains last month after the company said it signed a deal allowing its Cxbladder test to be used by District Health Boards. It inked two agreements with US healthcare network providers last year, giving it access to 44 million Americans.
Hallenstein has been the benchmark's worst performer this year, falling 20 percent. The clothing chain has cut earning guidance three times since June last year against a back drop of tougher competition and rising online apparel sales.
The retailer was unchanged at $3.09 in morning trade, while Pacific Edge rose 1.4 percent.
The move is part of stock market operator NZX's quarterly rebalance and the benchmark index will include Pacific Edge from March 24.