NZ
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Image Source : Krish Capital Pty Ltd
Index Update: On 17th April 2025, the broader NZ market closed the session higher amidst strong buying momentum in the materials sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.42% to end at 12,118.990 and S&P/NZX 20 Index rose by 0.39%. Also, S&P/NZX 10 Index increased 0.27%. Notably, S&P/NZX All Materials encountered a rise of 2.43% to close the session at 1,113.760.
Macro Update: Aotearoa NZ’s CPI rose 2.5% in the 12 months to the March 2025 quarter, as per Stats NZ. Notably, the 2.5% rise follows a 2.2% annual increase to the December 2024 quarter. Notably, the annual inflation rate was within RBNZ’s target band of 1% - 3% for the 3rd consecutive quarter. However, between the June 2021 and June 2024 quarters, the annual inflation was above the target band.
Top Market Movers: Among top gainers, Santana Minerals Limited (NZX: SMI) witnessed a rise of 8.93% to end the session at $0.61 per share. On the other hand, Tourism Holdings Limited (NZX: THL) declined 11.18% to $1.43 per share.
Commodity Update: The dollar steadied after hitting a seven-month low against the yen, as Fed Chair Powell emphasized inflation concerns amid escalating trade tensions. Gold slipped 0.08% to $3,344.77, silver dropped 2.08% to $32.29, and copper eased 0.23% to $9,185.53. Brent crude rose 0.70% to $66.33, with oil prices extending gains in Asian trade on renewed supply concerns following U.S. sanctions on Iran, despite a rise in U.S. crude inventories.
Source: Trading View, Analysis: Kalkine Group
Following a break below the upward trendline that had held since November 2024 and showing signs of weakness, the S&P/NZX 50 index has continued to fall beneath a key support level — the neckline of a Head & Shoulders formation — suggesting the potential for further downside. This bearish momentum may push the index toward a major support zone around 11,500 points. At present, the index is rebounding near this strong support area and showing early signs of stabilization, with a possible bullish divergence emerging on the 14-day Relative Strength Index (RSI) in its oversold territory. This could signal a possible recovery in case the index manages to surpass its previous peak at 12,400 points.
Our Stance: It could be said that the strong buying momentum in the materials sector supported the NZ market on 17th April. Moving forward, the global and NZ markets are expected to be impacted by the global macroeconomic news. Fed Chair Powell’s warning on trade policy impacts has added another layer of the uncertainty, which might weigh over the investors’ sentiments. Therefore, the investors are required to be cautious due to higher geopolitical and economic headwinds.
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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