KEY POINTS:
The sharemarket stretched to a new record close on a day that business grumbled about the budget while investors judged it a booster for the finance and building sectors.
Business tax cuts, Kiwisaver incentives and infrastructure spending in the budget helped push the sharemarket up more than 1 per cent yesterday to a record high.
It pushed further into new territory today but the going was harder.
The benchmark NZSX-50 index closed up 4.856 points to 4280.426. Rises outnumbered falls by 53 to 50 among the 153 traded.
Fund manager Tower, a default Kiwisaver provider, was seen as a beneficiary of Michael Cullen's bold move to enhance Kiwisaver on the eve of its implementation with phased-in compulsory employer contributions to match employee contributions. Tower, which has a profit announcement next week, was up 12c to 242.
Market leader Telecom was up 7c to 484 on a day that rival Vodafone hit down media speculation that it was considering quitting New Zealand.
Fletcher Building fell back 26c to 1249 after surging 4.5 per cent to a record high of 1275 yesterday because the budget boosted infrastructure spending.
"Buyers yesterday got a bit ahead of themselves. The budget did bring good news for Fletcher Building with more infrastructure spending and there has also been some overseas takeover activity in the building sector as well," said Grant Williamson, partner at Hamilton, Hindin, Greene.
"But it was in for a breather today."
Infrastructure investor Infratil was a star, rising 22c to 682.
"It is really the success story this week on the local market following their financial result," Mr Williamson said.
"All in all I think investors are looking at Infratil's portfolio of investments, all in the infrastructure sector, and mostly conservative, and still with a positive growth outlook.
"Infratil has really been a success story in the last three to four years and that looks set to continue," he said.
Other top 50 movers were Freightways, up 3c to 448 and Mainfreight, up 5c to 705. Toll NZ was up 20c at 295.
Amphibious boat builder Sealegs was up 4c at 96 after it said today it had trimmed its March year loss to $1.05m from $1.2m, after revenue rose 86 per cent.
Rakon was up 4c at 524. NZX rose 10c to 990. Vector eased 1c to 288.
Trading in Auckland Airport was healthy but did not appear to be going to any one party, brokers said. The stock was up 3c at 269.
Fisher and Paykel Healthcare was down 7c at 361 and Fisher and Paykel Appliances was down 6c at 374. Cavalier was unchanged at 320 and Contact rose 3c to 879.
Hellaby shed 5c to 405 but Guinness Peat Group rose 1c to 232.
Michael Hill rose 8c to 940 and The Warehouse rose 14c to 674. SkyCity eased 8c to 485.
Port of Tauranga eased 5c to 665.
- NZPA