Power companies dominate Top 10 as MRP enters NZX50

Friday 12th July 2013

State-controlled power company MightyRiverPower will join the benchmark NZX 50 index later this month as the sixth biggest company on the stock market.

With MRP's inclusion in the index from July 22, four of the country's 10 largest NZX companies by market capitalisation will be electricity sector players, with Meridian Energy's $3.3 billion or so float hanging over the market for third quarter partial privatisation and listing.

Contact Energy weighs in at fourth in the index, behind Telecom, MRP is sixth-largest, network company Vector is seventh, and Infratil-controlled TrustPower is ninth, for a collective value of $12.35 billion on today's closing prices.

Privatised in 1999 and controlled by ASX-listed Origin Energy, Contact is valued at $4.0 billion on a share price of $5.50, MRP is worth $3.28 billion at a share price of $2.34. TrustPower, valued at $2.35 billiion on a share price of $7.50, is the third of three companies with almost identical vertically integrated electricity generator and retailer business models to feature in the Top 10.

Meridian would add to that. Vector is the odd one out, in that it owns regulated monopoly electricity and gas networks, and has telecommunications fibre interests.

MRP will join the index on July 22, replacing Australian phone company Telstra Corp, NZX said in a statement after the close of trading. The changes are part of the stock exchange operator's monthly rebalance of the index.

Shares in MRP fell 0.9 percent to $2.34 in trading today, valuing it at $3.3 billion.

BusinessDesk.co.nz

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