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The value of South Island listed companies increased 16.9% for the quarter to September 30, financial services firm Deloitte says.
Deloitte's "South Island index" tracks the performance of 30 stocks.
Twenty-three of the 30 companies appreciated in value during the stellar quarter. The index is up 18.6% this year to a total market capitalisation of $5.41 billion, after a $782 million gain in the September quarter.
“One would assume that the worst of the global financial crisis is over in the south and many are hopeful the positive trend experienced over the quarter will continue,” Paul Munro, a corporate finance partner in Deloitte’s Christchurch office, says.
“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."
The index’s top performer for the quarter was Ryman Healthcare, gaining $320 million in market capitalisation or 18.5%, while the biggest drop came from NZ Windfarms, which lost $6.1 million in market capitalisation, a decline of 13.1%.
Click here for the full quarterly report.