Image Source : Krish Capital Pty Ltd
Index Update: On 20th January 2025, the broader NZ market ended the trading session lower, with S&P/NZX 50 Index declining by 0.32% to end at 13,088.310 and S&P/NZX 20 Index falling by 0.39%. Also, S&P/NZX 10 Index witnessed a fall of 0.22% and S&P/NZX 50 Portfolio Index declined 0.45%. Also, S&P/NZX All Real Estate encountered a fall of 1.56% to end the session at 1,569.140 and S&P/NZX All Energy fell by 1.55%.
Macro Update: As per Situation and Outlook for Primary Industries (SOPI) December 2024, the lift in export revenue in food and fibre sector is mainly expected to be driven by rebounding prices because of tightening global supplies of key commodities, such as dairy, beef, mutton, and seafood products. Additionally, higher export volumes of dairy, forestry, seafood as well as horticulture products can support export revenue growth.
Top Market Movers: Among top gainers, Millennium & Copthorne Hotels NZ Limited (NZX: MCK) witnessed a rise of 18.89% to close at $2.14 per share. On the other hand, Greenfern Industries Limited (NZX: GFI) declined by 14.29% to $0.024 per share.
Commodity Update: Asian stock markets were cautiously positive on Monday, with investors awaiting policy announcements following Donald Trump's second inauguration. The dollar remained firm as Trump set to take office at noon Eastern Time, promised a "brand new day of American strength." In commodities, gold slipped 0.21% to $2,743.10, silver dropped 0.24% to $31.06, and copper decreased 0.41% to $9,155.50. Brent crude fell slightly by 0.07% to $80.73 per barrel, as expectations that Trump may relax energy sector curbs on Russia in exchange for an end to the Ukraine war outweighed concerns about supply disruptions from sanctions.

Source: Trading View, Analysis: Kalkine Group
In July 2024, the S&P/NZX 50 index surpassed both the neckline of a Head and Shoulders pattern on the daily chart and a key resistance level marked by its 2023 high. This breakout indicates that the uptrend, which started in November 2023, is likely to persist and could push the index toward its historical peak from 2021. Since the breakout, the index has been forming higher highs and higher lows and bouncing off a short-term upward trendline established since June 2024 in the last trading session, reinforcing the prevailing uptrend. Meanwhile, the 14-day Relative Strength Index (RSI) is heading north from its midpoint, reflecting positive market sentiment in the short-term.
Our Stance: It could be said that the decline in the real estate sector impacted the broader NZ market on 20th January. Amidst uncertainties regarding the Trump’s fiscal policies, market players continue to closely assess the global macro-economic data points. Moving forward, the investors are required to closely track the data about initial jobless claims, which is expected to be released on 23rd January. Macro-economic indicators tend to give some idea about the direction of future rate cuts.






Please wait processing your request...