24 Jun 2014

NZ dollar and sharemarket flat

6:41 pm on 24 June 2014

The New Zealand dollar is flat against the currencies of the country's major trading partners.

Bancorp Treasury Services senior client advisor Peter Cavanaugh said the New Zealand dollar has stabilized after rising on Monday on the back of better-than-expected China data.

He said there is likely to be more volatility once the new quarter commences, but right now it is 'steady as she goes'.

At about 5pm on Tuesday, the kiwi was virtually unchanged from the same time on Monday at 87.22 US cents, 92.47 Australian cents , 51.21 British pence, 0.6413 euro; 88.88 yen. and 5.43 renminbi.

Sharemarket flat

New Zealand shares were flat on Tuesday with the benchmark Top 50 Index down 5 points to 5121.

Devon Funds portfolio manager Nick Dravitzki said Kathmandu's earning warning caught the market by surprise.

"Kathmandu released a trading update which is quite weak and suggested that for the 11 months to date earnings would be 15 percent lower than at the same period last year, and this is really a reflection of the weak consumer environment in Australia and the unusually warm weather they have been having over there."

Mr Dravitzki said Kathmandu usually does a huge number of sales in the month of July when it has its big winter sale and so there was an expectation they would be able to cover lost ground.

Kathmandu shares fell sharply 41 cents to $3.15 while Xero shares edged down 2 cents to $25.92.