Broader NZ Market Closes Lower

Image Source : Krish Capital Pty Ltd

Index Update: On 3rd July 2025, the NZ market closed the trading session in red amidst broad-based selling. On the same day, S&P/NZX 50 Index witnessed a decline of 0.62% to end the trading session at 12,704.480 and S&P/NZX 20 Index fell by 0.63% to 7,447.610. Also, S&P/NZX 10 Index encountered a fall of 1.06% to close at 12,423.760. Notably, significant decline was witnessed in the energy sector and S&P/NZX All Energy encountered a decline of 2.25% to 1,943.890.   

Macro Update: As per Stats NZ, NZ’s gross domestic product (GDP) witnessed a rise of 0.8% in the March 2025 quarter. This was after the 0.5% rise in the December 2024 quarter. Notably, the GDP declined 1.1% over the year ended March 2025 as compared to the year ended March 2024. The CPI rose 2.5% in the 12 months ended March 2025 quarter, which is within the RBNZ’s target band of 1% - 3%. In the same period, all salary as well as wage rates (including overtime) rose by 2.9%.   

Top Market Movers: Among top gainers, Black Pearl Group Limited (NZX: BPG) witnessed a rise of 29.67% to end at $1.18 per share. On the other hand, Blis Technologies Limited (NZX: BLT) declined by 18.18% to $0.018 per share.  

Commodity Update: The U.S. dollar fluctuated Thursday as a trade agreement with Vietnam boosted hopes for more deals before the July 9, 2025, tariff deadline. Investors awaited U.S. payroll data for clues on the Federal Reserve’s policy direction. Gold slipped 0.04% to 3,358.50 dollars, silver dipped 0.04% to 36.41 dollars, copper declined 0.33% to 9,970.45 dollars, and Brent crude fell 0.35% to 68.87 dollars amid weak U.S. demand concerns.   

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. Unless there is a clear breakout above the previous resistance level at 12,881 points or a breakdown below the earlier support level at 12,254 points, this sideways movement is expected to persist in the near term. Additionally, the 14-day Relative Strength Index (RSI) is currently hovering around its midpoint, which reinforces the previous outlook. As a result, investors may need to wait for a decisive move in either direction before gaining greater clarity on the market’s next trend.  

Our Stance: It could be said that selling in the energy sector somewhat impacted the broader NZ market on 3 July. As of now, the broader equity markets are being affected by the developments related to the trade policies. Notably, there seems to be some optimism among the market participants as the US President announced the Vietnam trade deal. However, the investors are required to monitor the volatile commodity and energy markets.