New Zealand shares edged lower as electricity companies remained under pressure as the future of the Tiwai Point smelter remains uncertain and after a weak operating update from Contact Energy.
The S&P/NZX 50 Index decreased 4.55 points, or 0.04 per cent, to 10,894.70. Within the index, 21 stocks fell, 23 rose, and six were unchanged. Turnover was $131.4 million.
Blue-chip stocks and companies held for the reliable dividends were among those to decline, despite a recent slide in bond yields that would typically make equity markets more attractive.
Power companies were among the day's decliners as investors continued to ponder whether Rio Tinto will pull the pin on the smelter, and what the latest operating updates meant. Mercury NZ fell 2.3 per cent to $4.91 with 862,000 shares changing hands, less than its 90-day average of 1.1 million, having recently been added to the MSCI Index. Genesis Energy was down 1.9 per cent at $3.17.
Meridian Energy, the country's biggest listed company, declined 1.5 per cent to $4.53 with 2.1 million shares changing hands, and Contact Energy decreased 0.4 per cent to $6.90 on a volume of 1.3 million.