Broader NZ Market Closes in Green

Index Update: On 30^th December, the broader NZ market closed higher amidst buying in the primary sector index, with S&P/NZX Primary Sector Index witnessing an increase of 1.19% to end at 16,161.540. On the same day, S&P/NZX 50 Index encountered a rise of 0.16% to close at 13,548.130 and S&P/NZX 20 Index rose by 0.12% to 7,706.650. Also, S&P/NZX 10 Index increased 0.15%. Notably, S&P/NZX All Consumer Staples went up by 1.08%.   

Macro Update: As per the FEU dated 19^th December, the larger components of the CPI were stable. Food prices, accounting for 18% of the CPI, declined for 3^rd consecutive month as recent strength in export commodity prices for some dairy products eased off. The monthly rent index, which was ~11% of the CPI, were relatively flat. This resulted in annual rate to 15-year low (1.4%).

Market Movers: Among top gainers, Manuka Resources Limited (NZX: MKR) witnessed a rise of 5.88%. On the other hand, WasteCo Group Limited (NZX: WCO) declined by 7.14%

Commodity Update: The U.S. dollar traded steady on Tuesday ahead of the Federal Reserve’s December minutes, expected to highlight policy divergences for 2026. Holiday-thinned liquidity kept currencies calm. Gold rose 0.70% to USD 4,374.05, silver gained 4.43% to USD 73.582, and copper advanced 2.24% to USD 12,484.82. Brent crude eased 0.10% to USD 61.43 despite lingering Russia–Ukraine supply concerns.

Source: Trading View, Analysis: Kalkine Group

In the latest trading session, the S&P/NZX 50 Index continued to trade within a tight range, highlighting ongoing consolidation between its record high and the key support area associated with the 2024 peak. From a technical perspective, the short-term outlook remains positive, supported by a well-defined sequence of higher highs and higher lows, with prices holding comfortably above critical technical thresholds. As long as this primary support zone remains intact, the broader uptrend that has been in place since October 2023 is expected to persist. Initial support is located near 13,270, and sustained trading above this level is necessary to preserve bullish momentum and pave the way for another challenge of the all-time high. However, a clear break below 13,270 would indicate a more pronounced corrective phase, potentially opening the door for a retracement toward the 13,000 level before the dominant uptrend reasserts itself.

Our Stance: As the year comes to an end, it seems that the global investors are liquidating their positions. As a result, the market players witnessed weakness in the US tech sector. Also, there was a significant decline in precious metals. Moving forward, the broader US markets are expected to be impacted by the upcoming economic releases. Coming to NZ, RBNZ, in the release dated 26^th November, added that household inflation expectations have declined, but are high compared to the recent history.