Sharemarket droops after budget revealed

The S&P/NZX 50 Index was trading strongly until the early afternoon budget presentation and then lost more than half its gains to close at 11,976.08, increasing 24.42 points or 0.2%.

The index earlier broke through the 12,000 points mark for the first time in six weeks with an intraday high of 12,039.26.

There were 74 gainers and 53 decliners on the main board with 45.39 million shares worth $198.77m changing hands. Trading was boosted by the exchange of 2.98 million Smartshares US 500 ETF units worth $35.87m, and 11.78 million Total World ETF units worth $34.81m.

Mark Lister, investment director with Craigs Investment Partners, said the budget was stimulatory. “There’s more spending, more borrowing and more debt issuance, and that means a bit more inflation.