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Image Source : Krish Capital Pty Ltd
Index Update: On 12th May 2025, the NZ market was supported by the buying witnessed in the utilities sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.57% to end the session at 12,676.750 and S&P/NZX 20 Index increased by 0.66% to close at 7,521.190. Also, S&P/NZX 10 Index rose by 0.45% to close the session at 12,555.020. Notably, significant buying was encountered in the utilities sector and S&P/NZX All Utilities increased by 2.02%.
Macro Update: Recently, RBNZ released financial stability report (May 2025). As per the release, despite the reduced interest rates, household as well as business credit demand is soft. Notably, household borrowers remained resilient to increased debt-servicing costs. Also, the non-performing loans remain around the peak, and these are expected to decline over the upcoming months as and when debt-servicing costs begin to decline.
Top Market Movers: Among top gainers, Chatham Rock Phosphate Limited (NZX: CRP) witnessed a rise of 7.59% to end the session at $0.085 per share. On the other hand, WasteCo Group Limited (NZX: WCO) declined by 5.26% to $0.018 per share.
Commodity Update: The dollar rose in early Asian trading on Monday after U.S.-China talks eased trade war fears. Gold dropped 2.03% to $3,275.60, silver slipped 0.37% to $32.79, while copper gained 0.55% to $9,500.10. Brent crude increased 0.20% to $64.09, extending last week’s rally. Investors welcomed the trade deal news but stayed cautious, awaiting more details on the agreement and developments in global geopolitical tensions.
Source: Trading View, Analysis: Kalkine Group
After undergoing a correction, the S&P/NZX 50 broke above its previous peak of 12,400 points and crossed the 50-day simple moving average, a key trend-following indicator - suggesting a potential recovery is underway. Additionally, the 14-day Relative Strength Index (RSI) is rising above the midpoint, lending further support to this outlook. Currently, the index is approaching the upward trendline that has been in place since October 2023, near the 12,750-point level, which could influence its next direction. A decisive break above this trendline could pave the way for further gains, with the next major resistance located around the previous high near 13,250 points. However, failure to breach this level may signal a continuation of the recent consolidation phase.
Our Stance: It could be said that the significant buying in the utilities sector somewhat supported the broader NZ market on 12th May 2025. As of now, the broader global and NZ markets are being impacted by the news related to the tariffs. Recently, there has been a positive development on the US-China trade deal front, which can support the broader markets moving forward. For the market players, some positive news on the trade deal front provides some kind of relief.
Disclaimer This report has been issued by Kalkine New Zealand Limited (FSP691351) (NZBN:9429047678101) (“Kalkine”). Kalkine is a Financial Advice Provider (“FAP”) and is authorised by a Class 1 Financial Advice Provider Licence issued by Financial Markets Authority (“FMA”) to provide financial advice. Kalkine provides only general financial advice through its research reports following a person becoming a member. The reports contain buy/sell/hold and other recommendations in relation to equity securities, managed funds and other managed investment schemes and other financial advice products. The recommendations and opinions in this report and on Kalkine website do not take into account any of your investment objectives, financial situation or needs. Before you make a decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement from the product issuer. You should consider the appropriateness of advice taking into account your own objectives, financial situation and needs and seek independent financial advice before making any financial decisions. If you act on the advice in the research reports, you may have to pay fees, expenses or other amounts (but not to Kalkine). Further information about the complaints and dispute resolution process, as well as information about Kalkine’s duties are available on Kalkine’s website. Please read our Financial Advice Provider (FAP) disclosure statement and Complaints Handling Guide, which are available on the website.
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