20 Nov 2013

Share prices of recent Govt sell-downs fall

7:02 pm on 20 November 2013

The stock market provided bad news for the Government as the share prices of all the companies it sold down recently fell.

The benchmark Top 50 Index fell 22 points to 4840.

New Zealand portfolio manager at Devon Funds Management, Nick Dravitski, says people who bought shares in Air New Zealand, Meridian Energy and Mighty River Power aren't very happy.

He says Air New Zealand was placed at $1.65 and on Wednesday it traded below that level all day and Meridian Energy also dropped below its initial issue price on Wednesday.

"In one way it might say that the Government got pretty good prices for the stocks that they've sold, obviously for investors who put their money into those stocks it's been a pretty disappointing outcome thus far."

Air New Zealand shares fell to $1.565 compared with the $1.65 price the Government sold 121 million shares at on Tuesday.

Meridian's instalment receipts fell to 99 cents before closing bang on the $1 price they were issued at in late October, while Mighty River Power shares hit a fresh low at $2.085 cents before closing at $2.10.

Mighty River Power shares were issued at $2.50 in May.

Nick Dravitski says Pumpkin Patch management made some comments at their annual general meeting on Wednesday which indicated they are facing difficult trading conditions and the stock reacted quite negatively to that.

Pumpkin Patch fell 8 cents to 84 cents.