Passive funds sell millions of Contact and Meridian shares

Meridian Energy's Manapōuri hydro power station. (Photo: supplied)

Fri, 15 Oct 2021

New Zealand's main share index fell as more stocks were added to a clean energy index prompting offshore passive funds to sell millions of shares in Contact and Meridian.The S&P/NZX 50 Index fell 36 points, or 0.3%, to 13,012.19. Turnover was $227 million in an extended trading session.Renewable electricity generators were responsible for the underperformance, falling as funds tracking the S&P Clean Energy Index rebalanced their portfolios.The passive fund was responsible for pushing Contact and Meridian to massively stretched valua...

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