The Deloitte South Island index rocketed upwards in the three months ended September, gaining an astonishing $1.6 billion, or up 22.7%, Deloitte corporate finance partner Paul Munro said yesterday.
It was the largest quarterly growth percentage since the inception of the index in 2007.
''The performance of the index over the last quarter has been nothing less than remarkable.
''In particular, the significant growth from Ebos Group, after its strategic Australia acquisition, clearly demonstrates South Island companies can successfully expand into overseas markets and compete in the current global economic environment.''
The latest quarterly results showed the index up $3.02 billion (53.6%) for the year to September 30, with total market capitalisation now at $8.66 billion - another high since the inception in 2007.
The South Island index outperformed increases in the NZX-50 of 23.5%, the ASX All Ordinaries of 18.4%, and the Dow Jones of 12.6%, Mr Munro said.
The quarter also saw the re-emergence of the primary sector in positive territory, a pleasing result given the importance of the sector to the South Island economy, he said.
The principal architects of the revival were the dairy duo of Synlait Farms and Synlait Milk, as investors scrambled for a share in the New Zealand dairy industry.
PGG Wrightson's recovery provided a helping hand as the company was seemingly unfazed by the recent adverse weather conditions and Fonterra's botulism scare.
The index's top performer for the quarter was Ebos, which gained a ''phenomenal'' $854.5 million in market capitalisation, or 135.8%. That followed the issuance of more than 81 million shares after finalising the acquisition of the Symbion Group in July.
On the day of the share issue, the market capitalisation of Ebos grew by $770.9 million - more than doubling its size.
''The dramatic move by Ebos cements its position in second place on the index,'' Mr Munro said.
Ryman Healthcare's share price continued to climb in the quarter, increasing another 58c, or 9.1%, in the period and growing its market capitalisation by $290 million.
Kathmandu Holdings and newcomer Synlait Milk both had strong quarters.
The largest fall in the quarter came from Lyttelton Port which lost $35.7 million in market capitalisation, a fall of 12.3%, after having a stellar second quarter of the year, he said.
Lyttelton Port announced its annual results which noted the continual challenges it faced regarding its earthquake insurance claims, now three years old.
Dunedin-based Pacific Edge lost ground but recent share price rises should see it regain that ground in the December quarter. In September, the biotechnology company had market capitalisation of $148.6 million. Yesterday, its market capitalisation was $196.13 million, a rise of more than 30%.
Six of the eight industry sectors posted positive movements in the quarter, led by the manufacturing and distribution and primary sectors. The two sectors undergoing declines during the quarter were port and biotechnology, which fell 7.1% and 8% respectively.
