Profit takers drive NZX 50 lower

Genesis Energy shares were down 2.1 per cent yesterday at $2.125. Photo / Alan Gibson

Power companies lead the fall as investors sell stocks to bank gains made since the September general election.

New Zealand shares fell yesterday, paced by Meridian Energy, Contact Energy and Mighty River Power as some investors looked to crystallise recent gains. Fletcher Building fell as investors weighed the construction company's outlook.

The NZX 50 Index fell 24.13 points, or 0.4 per cent, to 5471.68. Within the index, 27 stocks fell, 18 rose and five were unchanged. Turnover was $107 million.

The benchmark index has advanced around 16 per cent since the start of the year, fuelled in part by investors hunting for yield-paying investments in a historically low interest rate environment.

Energy companies, held for their reliable income, have rallied in the lead up to and since the September 20 general election. Power companies fell yesterday as some investors looked to book recent gains. Meridian dropped 2.3 per cent to $1.69. Contact declined 1.1 per cent to $6.33. MRP fell 0.8 per cent to $2.96. Genesis Energy slid 2.1 per cent to $2.125.

"It's been a bit of a disappointing day on the market, but ours has been outperforming other markets around the world," said Grant Williamson, director at Hamilton Hindin Greene. "It is profit taking, if you have a look at the electricity generators, which have had a good time of it since the election, they're all under pressure today."

Spark New Zealand, formerly Telecom, which has gained 38 per cent since the start of the year dropped 0.9 per cent to $3.16.

Fletcher Building slipped 1.2 per cent to $8.30 and has fallen 1.3 per cent since the start of the year, underperforming the benchmark index. The construction and building supplies company is facing headwinds in its Australian business from the historically high kiwi dollar.

Retirement village operators and developers slipped as investors raised cash and rejigged portfolios ahead of the upcoming listing of rival Arvida, which is planning to raise $80 million in an initial public offering, Williamson said. Summerset Group Holdings fell 0.4 per cent to $2.73. Ryman Healthcare dropped 1.2 per cent to $8.09. Metlifecare slipped 0.2 per cent to $4.34.

Precinct Properties New Zealand was unchanged at $1.13 after it said it has sold its SAP Tower in Auckland to property mogul Bob Jones for $97 million, $1.4 million above its book value.

New Zealand Oil & Gas led the benchmark index lower falling 3 per cent to 65c.

Kathmandu Holdings, the outdoor goods retailer, was the best performer on the benchmark index, jumping 6.7 per cent to $3.01, having dropped on Friday when it said margins were under pressure.

Outside the benchmark index, Scales Corp, the fruit and vegetable logistics company, rose 1.4 per cent to $1.49 after it said it will pay a 3c per share interim dividend and says annual earnings may beat guidance in its prospectus.

Acurity Health Group, the hospital operator set to be taken private by its three biggest shareholders, was unchanged at $7 after it lifted first-half by profit 22 per cent to $4.9 million.

Smartpay climbed 15 per cent to 23c after the listed payments terminal supplier launched its taxi booking and payment mobile app as a precursor to a roll-out across the Tasman.