14 Jul 2014

Good day for 'riskier' shares - analyst

6:04 pm on 14 July 2014

New Zealand shares rose on Monday, with the NZX Top 50 Index rising 27 points to 5128.

Fat Prophets head of research Greg Smith said some of the riskier stocks were back in favour after Portugal reassured the market its banks are secure.

"We saw a bit of weakness at the tail end of last week through concerns over the Portuguese banking system," Mr Smith said.

"The government and central bank unsurprisingly came out to reassure everyone that there was no problems with the banking system it's led to some ... 'risk on', if you like.

"So we're seeing some of the riskier shares ... rebound a little bit today."

That included Wynyard Group, up 9 cents to $2.09, and Xero, up 50 cents to $25.25.

"On the down side, Pumpkin Patch still reflects the malaise that we're seeing in the retail sector and particularly that part of the retail sector - competition from the internet, in particular - and the shares have more than halved in the past year," Mr Smith said.

Shares in Pumpkin Patch dropped 2 cents to 38 cents.

Dollar steady

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

Bancorp Treasury Services client adviser Peter Cavanaugh said the Kiwi was mostly unchanged as the market waited for domestic and international data in the coming days.

"The New Zealand dollar has been little changed over the weekend and today, awaiting local data, mainly inflation CPI data out on Wednesday, and also the latest Fonterra dairy auction.

"Like the world, they're waiting to see what comes out of China's GDP number and Fed chairman Janet Yellen's appearance before US Congress to get some clarification of what and when the Fed will do next."

Just after 5pm, the New Zealand dollar was buying: 88.13 US cents, 93.8 Australian cents, 51.49 pence, 0.6477 euro, 89.47 yen and 5.47 renminbi.