30 May 2014

NZ dollar slightly up against greenback

6:14 pm on 30 May 2014

The New Zealand dollar is slightly higher against the US dollar and slightly lower against the Australian dollar.

dollars and coins

Photo: PHOTO NZ

Bancorp Treasury Services senior client advisor Peter Cavanaugh said the kiwi had been oversold against the greenback in the wake of Fonterra announcing a lower farmgate milk payout for next season.

He said the New Zealand Australian dollar has suffered after the market took a shine to the Australian dollar following some reasonable capital expenditure data on Thursday.

Mr Cavanaugh said that has lifted the New Zealand dollar a little as well, but the New Zealand Australian exchange rate has suffered and is close to its lowest level this year.

At about 5pm on Friday, the kiwi was trading at 85.06 US cents, 91.21 Australian cents, 50.8 British pence, 0.6251 euro, 86.38 yen and 5.30 renminbi.

NZ shares relatively flat

New Zealand shares were relatively flat on Friday, the benchmark Top 50 Index down 5 points to 5178.

JB Were equities manager Ricky Ward said there was one stand-out stock movement on the exchange on Friday and that was Synlait.

He said Synlait was given a downgrade of a magnitude that was not expected and the new forecast signals a risk that the company won't meet its prospectus forecast of $19.8 million. Mr Ward said shares in Synlait were sold heavily through out the day.

Synlait shares fell 30 cents to $3.10 while A2 Milk shares dropped 2 cents to 78 cents.

Xero shares sank 66 cents to $2 and Diligent shares shed 2 cents to $4.19.

Shares in Abano fell 17 cents to $6.60. Two of Abano's major shareholders have asked the High Court to delay the special meeting they sought to vote on removing the chairman, Trevor Janes, and which is scheduled for 13 June.

The shareholders, Peter Hutson and James Reeves have previously said Abano's board was trying to delay the meeting.