Power rally pauses ahead of election

The power companies led the local stock market lower in heavy trading as investors cashed in recent gains ahead of tomorrow’s election.

The companies – with their significant South Island generation - have been on a tear since Sept. 28 when the incumbent Labour Party and likely victor in tomorrow’s election said it will offer NZ Aluminium Smelters a lower transmission price in a deal to keep the operation running for another three-to-five years.

Contact fell 4.4 percent to $7.74, leading the market lower, and Meridian dropped 4.2 percent to $5.65, having climbed from $6.27 and $4.65 respectively before the smelter reprieve emerged.