NZX listed companies in the South Island are starting to bounce back from a mid year slump according to analysis from Deloitte.

The latest Deloitte South Island index for the September quarter showed listed companies in that region were up $348 million or 8.5% to a total market capitalisaiton of $4.45 billion, a rise of $891 million on one year earlier.

“The South Island has fared particularly well this quarter but it would be a brave man who would predict a similar increase in the year’s final quarter,” Deloitte corporate finance partner Paul Munro said.

Major international oil explorer Anadarko Petroleum Corporation (NZSE: APC) is sticking to its goal of drilling in deep water off the South Island late next year.

Anadarko entered New Zealand waters in June, farming into 50% of Origin Energy’s PEP 38262 permit in the frontier Canterbury Basin off the coast of Dunedin.

Anadarko will operate the permit and has agreed to fund the first US$30 million of the cost of drilling an exploration well.

The South Island earthquake has destroyed New World in Kaiapoi beyond repair, leaving more than 80 employees jobless.

The supermarket was run by locals Andrew and Jacqui Palmer and employed 34 fulltime and 52 part time staff.

The damage caused by Saturday's earthquake is so severe it is not viable to save the building. It will take at least one year to build and open a new one, which Foodstuffs - New World's parent company - plans to do.

South Island listed companies took a hit by a recent loss in investor confidence after the previously positive outlook but its economy remains more stable than the rest of the country, according to Deloitte.

The latest Deloitte South Island Index decreased $166 million or 3.9% during the second quarter of 2010.

Growth during the six-month period to 31 March 2010 had been wiped out in the latter two months of the June quarter. But compared to the previous year the index market capitalisation of $4,109 million was $385 million higher than at June 2009.