Broader NZ Market Closes in Green Amidst Buying in Materials Sector

Index Update: On 6th January, the broader NZ market closed higher as materials sector encountered strong buying momentum. On the same day, S&P/NZX 50 Index witnessed a rise of 0.56% to end at 13,663.580 and S&P/NZX 20 Index went up by 0.61% to 7,777.730. Also, S&P/NZX 10 Index rose by 0.73%. Notably, S&P/NZX All Materials witnessed a strong increase of 3.10% to end at 1,150.780.     

Macro Update: In the FEU dated 19th December, it was mentioned that, in the US, capex on data centres, the factories possessing advanced computer chips and processing equipment required to train and run AI models, has increased strongly. Higher demand for the infrastructure needed to run them, which includes electricity, resulted in new solar and battery storage facilities. 

Market Movers: Among top gainers, Move Logistics Group Ltd (NZX: MOV) increased by 21.43% to end at $0.34 per share. On the other hand, Green Cross Health Limited (NZX: GXH) declined by 4.29%.   

Commodity Update: The U.S. dollar held firm near a two-week high in early Asian trade on Tuesday as market anxiety over U.S. military action in Venezuela eased and dovish Federal Reserve remarks supported risk appetite on Wall Street. Gold rose 0.49% to USD 4,474.20, silver surged 2.31% to USD 78.51, and copper advanced 1.39% to USD 13,225.00. Meanwhile, Brent crude slipped 0.20% to USD 61.61 on expectations of higher Venezuelan output and ample global supply amid weak demand.  

Source: Trading View, Analysis: Kalkine Group  

The S&P/NZX 50 Index extended its short-term recovery for a fourth consecutive session, advancing 76.33 points, or 0.56%, to finish at 13,663.57. Despite this advance, the index continues to trade within a sideways consolidation, bounded by its record high on the upside and a key support zone associated with the 2024 peak. From a technical perspective, the near-term bias remains constructive, supported by a clear sequence of higher highs and higher lows, with price action holding comfortably above critical technical levels. As long as this primary support area is preserved, the broader uptrend that has been in force since October 2023 is expected to remain intact. Initial support is located near 13,270, and sustained trading above this level would help maintain bullish momentum and keep the prospect of another test of the all-time high alive. By contrast, a decisive break below 13,270 would signal a deeper corrective phase, opening the door to a pullback toward the 13,000 region before the prevailing uptrend reasserts itself.  

Our Stance: As of now, the broader US markets are being impacted by macroeconomic uncertainty as well as geopolitical worries. Apart from this, challenges related to the trade front continue to impact the investors’ sentiments. Coming to NZ, on 26 November 2025, RBNZ stated that the weakness in economic activity resulted in significant spare capacity opening in the economy since mid-2024. Furthermore, unemployment as well as measures of labour underutilisation have witnessed a rise, and firms have been reporting that it is now relatively easier to find workers.