NZ shares drop as Air NZ punters sell NEW Zealand shares fell as brokers hoping for a quick profit from the government selldown of Air New Zealand were forced to sell in a declining market and concerns about unfavourable policy changes weighed on power companies. The NZX 50 Index declined 22.144 points, or 0.5 per cent, 4,840.364 on Wednesday. Within the index, 29 stocks fell, 12 rose and nine were unchanged. Turnover of $523 million reflected the government's sale of 20 per cent of Air New Zealand and subsequent trading at 5.2 per cent below that sale price. Air NZ tumbled 5.2 per cent to $1.565, after the government achieved a price of $1.65 to reduce its holding in the airline to 53 per cent. That price was near a five-year high. Some 237 million shares changed hands, amounting to about 22 per cent of the stock. "Short term, there's been a bunch of 'flippers' who have not made what they wanted and taken their bat and ball and gone home," said Matt Goodson, managing director at Salt Funds Management. Medium term, it removes an overhang. Air New Zealand now looks very interesting versus other airlines' valuations. Mighty River Power fell 2.3 per cent to $2.10, the lowest since the shares began trading and leading declines among some power companies. Contact Energy fell 0.6 per cent to $4.92 and Meridian Energy dropped about two per cent to its listing price of $1. "Wholesale prices are relatively low, retail churn is quite high and the fear of change to energy policy isn't going to go away soon," Mr Goodson said. The opposition Labour and Green parties have vowed to install a centralised electricity buying body if elected next year. Pumpkin Patch, the children's clothing retailer, fell 8.7 per cent to 84 cents after saying it expects annual earnings to be in line with 2013, and faces more downside risk for the remainder of the year. Kathmandu, the outdoor clothing retailer, fell 3.6 per cent to $3.73 after saying sales rose 0.9 per cent in the first 16 weeks of the year, broadly meeting its expectations. Chorus, which this week withdrew its dividend guidance because of uncertainty over regulated price cuts, fell 2.4 per cent to $1.855.