KEY POINTS:
The sharemarket recovered from early lows today, but remained well in the red as it failed to shake off the influence of a pessimistic Wall Street.
The benchmark NZSX-50 index closed down 20.38 points, or 0.6 per cent, at 3591.3, following a 35 point fall yesterday as the market awaited today's government Budget.
The index had been 20 points lower earlier in the session. Turnover totalled $114 million.
While aspects of the annual Budget had already been announced, the three-year, $10.6 billion programme of tax cuts was bigger than many expected.
The New Zealand dollar surged 1 US cent as markets bet on interest rate rises.
"The budget's been reflected in other markets rather than the equity market, we're following offshore trends really," said First NZ Capital director Philip Hunter.
Top stock Telecom was up 2c at 394, having hit a session low of 387. Contact Energy was up 8c at 897, Fletcher Building fell 6c to 789, Fisher & Paykel Healthcare was flat at 274 after yesterday's 30 per cent fall in annual profit, and F&P Appliances was down 9c at 231.
Auckland Airport was down 2c at 223, Sky City lost 6c to 366, Sky TV fell 7c to 459, and Infratil was down 3c at 226.
Tower Ltd closed down 5c at 219 after the insurer and fund manager announced a 91 per cent fall in net profit and no dividend, although operating profit rose significantly.
Shares in aged care provider Ryman Healthcare were up 4c at 178 after it reported a 22 per cent rise in annual net profit to $72.6 million.
Substantial operating cash flows had allowed Ryman to develop new villages at an increasing rate without seeking fresh capital, while increasing dividends.
The market was less impressed with Rakon's 4 per cent rise in annual net profit to $10.9 million, pushing its shares down 3c to 327.
A high New Zealand dollar and higher depreciation and amortisation charges had offset growth in earnings before interest, tax, depreciation and amortisation, Rakon said.
Among the handful of top-50 stocks to rise were The Warehouse, up 4c at 538, Methven, up a cent at 148, NZX, 10c higher at 840, and ING Medical Properties, up a cent at 121.
Dual-listed stocks were weaker, with ANZ down 50c at 2643, Westpac down 17c at 3000, and AMP off 42c to 918.
Australia's S&P/ASX 200 Index was up 0.3 per cent at 5838, as oil and gas companies surged on the back of record high oil prices.
Earlier, US stocks posted their biggest losses in two weeks amid fears of 1980s-style stagflation, after the Federal Reserve slashed its economic growth forecasts while raising estimates for inflation.
- NZPA
