Energy stocks drain market for second consecutive day

Chorus led the market lower on the risk of more regulation.

The S&P/NZX 50 Index declined 46.02 points, or 0.4 percent, to 11,394.86. Within the index, 20 stocks fell, 23 rose, and seven were unchanged. Turnover was $144.6 million.

The benchmark dropped as investors continued to sell positions in energy stocks that have been negatively affected by the closure of the aluminium smelter that uses 13 percent of New Zealand’s electricity.

Rio Tinto, which owns nearly 80 percent of New Zealand Aluminium Smelters, advised Meridian early yesterday that the smelter will close in August next year. The news sent energy stocks tumbling and prompted the index’s biggest single-day drop since March.