Renewable energy stocks begin final descent
The S&P/NZX 50 Index fell 87.83 points, or 0.7%, to 12,400.48. Within the index, 20 stocks fell, 19 rose and 11 were unchanged. Turnover was $193.2 million.
Meridian Energy dropped 5.9% to $5.25 and Contact fell 4.1% to $6.79. Both are included in S&P’s Global Clean Energy Index which was responsible for inflating their share prices in January.
The index builder has now moved to prevent similar liquidity shocks in the future by adding 70 new companies to the index and significantly reducing the weighting of the two Kiwi stocks.
Today, when the market reopened after the Easter weekend investors reacted to the Good Friday announcement and began selling and shorting the two stocks ahead of the rebalance.
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