2 Apr 2014

Investors readying for Genesis float

7:08 pm on 2 April 2014

The share market is little changed as investors prepare for the Genesis Energy float, the NZX Top 50 Index falling 6 points to 5116.

Hamilton, Hinden, Green director Grant Williamson said investors were preparing for the Government's sale of up to 49 percent of Genesis Energy, which was expected to raise up to $736 million.

"Investors are certainly raising funds for the Genesis Energy float, and they are selling other utility stocks, and some other stocks, on the market in order to raise those funds," Mr Williamson said.

"The Genesis Energy float is very popular among investors."

The other two Government-controlled power companies both fell, Meridian shedding 2 cents to $1.13.5 and Mighty River Power falling 2 cents to $2.17.

Xero shares dropped $1.15 to $38 and Ryman shares fell 3 cents to $8.62, while Goodman Fielder shares fell 11 cents to 54 cents after the company forecast lower profits.

Dollar down

The New Zealand dollar fell two-thirds of a cent against the US dollar and was weaker against the currencies of all the nation's major trading partners.

ANZ senior foreign exchange strategist Sam Tuck said the results of the latest dairy auction spooked investors.

"The New Zealand dollar has fallen today in response to the Global Dairy Trade auction being down 8.9 percent," he said.

It was the fourth consecutive fall in the Global Dairy Trade auctions, taking declines to 18.2 percent over those four auctions.

That had led people to suspect dairy might not be "a continued powerhouse for New Zealand ad infinitum", Mr Tuck said.

"So it's sort of taken a bit of a gloss off the New Zealand forward projections."

Just after 5pm, the New Zealand dollar was buying: 86.02 US cents, 93.11 Australian cents, 51.74 pence, 0.6232 euro, 89.33 yen and 5.34 renmimbi.