Shares fall as power firms come off boil

Air NZ leads stocks down, with many easing off records

New Zealand shares fell with the major electricity generator-retailers giving up some of their recent gains. Air New Zealand led the market lower.

The S&P/NZX 50 Index declined 60.35 points, or 0.5 per cent, to 11,142.58. Within the index, 25 stocks fell, 19 rose, and six were unchanged. Turnover was $152.3 million.

The major power companies fell,

having hit records in recent weeks as the attraction of a reliable dividend prompted investors to bid up the prices at a time when ultra-low interest rates deter investment in fixed interest assets. Contact Energy fell 1.8 per cent to

$8.77, Genesis Energy was down 0.7 per cent at $3.61, Meridian Energy declined 1.7 per cent to $5.35, and

Mercury NZ decreased 1 per cent to $5.54.

“The electricity stocks took a bit of a hit today. You’re really looking at the top 20 or so stocks that have come in for a reasonable amount of selling,” said Grant Williamson, a director at Hamilton Hindin Greene.

Globally-exposed companies also came under pressure yesterday. Air New Zealand led the market lower, down 3.5 per cent at $2.76 on a volume of 1.3 million shares, more than its 90-day average of 728,000. A2 Milk fell 2 per cent to $14.60 and Vista Group International was down 1.7 per cent at $4.16. Auckland

International Airport dipped 0.1 per

cent to $9.50 and Fisher & Paykel Healthcare decreased 0.9 per cent to $17.35. Pushpay Holdings fell 0.9 per cent to $3.32 on an unusually large volume of 4.4 million shares. It usually trades on a daily volume of 695,000. Spark New Zealand was the most traded stock on a volume of 5.9 million shares, more than its 90-day average of 3.4 million. It fell 1.2 per cent to $4.65. Tourism Holdings rose 4.6 per cent to a six-week high $4.12.

Fletcher Building was up 3.1 per cent at $4.97. Both companies are contending with underperforming units.

Of other companies trading on volumes of more than a million shares, Goodman Property Trust was unchanged at $2.24, NZX rose 0.8 per cent to $1.29, and Kiwi Property

Group increased 0.3 per cent to $1.685. Argosy Property was down 1.3 per cent or 2 cents, at $1.495, after shedding rights to a 1.57 cent dividend. PGG Wrightson fell 2.4 per cent, or 6 cents, to $2.41, after giving up rights to a 7.5 cent dividend.

Outside the benchmark index,

Cannasouth rose as high as 84 cents before sliding back to 54 cents. The stock ended down 28 per cent on the day after the NZX issued a “please explain” notice on why the stock price had soared 85 per cent during the course of a week. It traded on a volume of 2.9 million shares, the most since its listing in June.

Moa Group was unchanged 30.5 cents after saying it’s agreed to buy Parnell restaurant Non Solo Pizza for $3.75m. The Local Government Funding Agency’s 2024 bond paying annual interest of 2.25 per cent was the most traded debt security on a volume of almost 1.8 million. The notes closed at a yield of 1.37 per cent, up 13 basis points.