Contact Energy briefly overtook Telecom as the country's largest listed company by market capitalisation as share prices seesawed on a combined $35.1 million of shares traded yesterday.
Telecom shares, which closed at $2.73, had earlier hit a record low of $2.68, while Contact closed at $8.61.
Telecom clung to the coveted top spot on the NZSE Top 10 at closing with a $4.98 billion market capitalisation, compared with Contact's $4.94 billion close.
ABN Amro Craig broker Chris Timms said Telecom was beset with foreign investors leaving to take up Telstra stock in Australia, with better prospects than Telecom, which faces regulatory risks and large capital expenditure programmes, which have prompted concerns about future dividend payments.
Contact however, was seen as an attractive defensive energy stock, with gains to be made from the Government's's recently introduced emissions trading scheme, through its renewable energy developments, good cash flow and less risk from regulatory interference.
"Contact briefly tipped Telecom out of its number one mantle. There's only about $20 million between them," Mr Timms said.
A total $26.4 million was traded on 9.5 million Telecom shares during the day while $8.7 million was traded on 1 million Contact shares.
