Image Source : Krish Capital Pty Ltd

Index Update: On 16th July 2025, the NZ market ended the trading session higher amidst broad-based buying momentum. On the same day, S&P/NZX 50 Index witnessed a rise of 0.51% to end at 12,754.590 and S&P/NZX 20 Index rose by 0.61% to 7,466.850. Also, S&P/NZX 10 Index encountered a rise of 0.91% to close at 12,406.640. Notably, significant buying was witnessed in the financials sector and S&P/NZX All Financials increased 2.77%.  

Macro Update: As per RBNZ, the Committee highlighted that, despite global factors, the domestic financial conditions have been evolving broadly as anticipated. Notably, the mortgage and deposit interest rates have continued to fall, demonstrating a lower OCR, robust bank liquidity as well as soft credit growth. The average interest rate on the stock of mortgages is projected to continue to fall in the upcoming quarters.   

Top Market Movers: Among top gainers, Promisia Healthcare Limited (NZX: PHL) witnessed a rise of 5.62% to end at $0.47 per share. On the other hand, Black Pearl Group Limited (NZX: BPG) fell by 9.09%.   

Commodity Update: On Wednesday, the U.S. dollar and Treasury yields rose, pressuring the yen as U.S. inflation data showed the impact of the tariff. Gold dipped 0.01% to $3335.40, silver fell 0.12% to $38.06, and copper eased 0.01% to $9639.00. Brent crude, however, climbed 0.42% to $69.00, driven by expectations of stable demand in the U.S. and China amidst an improving economic outlook.   

A screenshot of a graph AI-generated content may be incorrect., Picture

Source: Trading View, Analysis: Kalkine Group   

Following a sustained upward rally that began in October 2023, the S&P/NZX 50 index appears to be transitioning into a consolidation phase. This is evidenced by the formation of a lower high and a higher low on the chart - typically a technical signal that the market may be entering a trading range. Currently, though the index is on a rally and approaching a significant resistance established by its previous high at 12,881 points; however, unless there is a clear breakout above the mentioned resistance level, this sideways movement is expected to persist in the near term. As a result, investors may need to wait for a clear move before gaining greater clarity on the market’s next trend.  

Our Stance: It could be said that the buying in the financials sector somewhat impacted the broader NZ market on 16th July. While the broader global markets continue to be impacted by the tariff uncertainties, the investors are required to focus on the developments related to the monetary policy. Furthermore, the earnings season might also affect the direction of broader markets. On July 17, the data about US retail sales is expected to be released.  

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