Shares in Mighty River Power and Meridian Energy have been coming off the boil, but there are few obvious reasons for a recent slump in their stock prices.
The two electricity firms became performers after National's win in the September general election eliminated regulatory risk associated with opposition policies, sending their valuations soaring. And the momentum continued as local and international investors, on the hunt for income in a low interest-rate environment, piled in for the attractive dividends they offer.
Both stocks gained about 50 per cent after the election, with Mighty River hitting a record close of $3.55 on January 28 and Meridian reaching its all-time closing high of $2.18 in early March.
But since then Mighty River shares have shed 17.7 per cent, closing down 6c at $2.92 last night, while Meridian's instalment receipts have fallen 12.4 per cent to close up 6c at $1.91 yesterday.
Genesis Energy shares have held up well, falling only 5.8 per cent from their record close of $2.40 last month to finish up at $2.26 last night.
