Five day streak of gains ends; Gentracks leads market lower
The S&P/NZX 50 Index decreased 14.60 points, or 0.1 percent, to 11,301.98. Within the index, 26 stocks fell, 22 rose, and two were unchanged. Turnover $108 million.
Gentrack led the market lower, down 6.3 percent at $3.75, its lowest level since March 2017. The stock has slumped 27.2 percent since issuing its third profit warning on Nov. 21, and took another thumping today on news of a major restructuring plan at UK electricity supplier Npower, one of that nation’s big six retailers.
“Gentrack has really struggled. We’ve seen one of the top six energy retailers in discussions around winding up what’s called Npower,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. Npower owner E.ON has flagged plans to cut up to 4,500 jobs of its 5,700 staff in a restructuring plan to hand over millions of customers to E.ON UK, shrinking the big six to the big five.
“With what’s happening with energy retailers in the UK, more money’s being taken off the table” at Gentrack, he said.
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