Broader NZ Market Closes Lower: A Quick Look

Image Source : Krish Capital Pty Ltd

Index Update: On 23rd July 2025, the broader NZ market ended the trading session lower amidst selling in the financials sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.31% to end the session at 12,794.060 and S&P/NZX 20 Index fell by 0.37% to 7,493.760. Also, S&P/NZX 10 Index encountered a fall of 0.55% to 12,494.020. Notably, significant selling was witnessed in the financials sector and S&P/NZX All Financials fell by 1.71%. However, S&P/NZX All Consumer Discretionary increased by 1.88%.  

Macro Update: As per Stats NZ, the seasonally adjusted greenhouse gas (GHG) emissions by industries and households in NZ witnessed a rise of 0.9% in the March 2025 quarter as compared to the December 2024 quarter. Notably, the rise of 176 kilotonnes during the quarter was mainly because of a rise in industry emissions, mainly from the electricity, gas, water, and waste services industry. Over the quarter, industry emissions, excluding households, witnessed a rise of 1.0% (177 kilotonnes).  

Top Market Movers: Among top gainers, Rua Bioscience Limited (NZX: RUA) witnessed a rise of 7.14% to $0.045 per share. On the other hand, Foley Wines Limited (NZX: FWL) declined by 4.92%.  

Commodity Update: The dollar remained weak on Wednesday after President Trump announced a trade deal with Japan, reducing a planned tariff from 25% to 15% and securing a $550 billion Japanese investment in the U.S. Gold slipped 0.24% to $3,335.60. In comparison, silver rose 0.20% to $39.63. Copper edged down 0.13% to $9,902.60. Brent crude gained 0.31% to $68.80, limited by fading optimism over the upcoming EU-China summit.  

Source: Trading View, Analysis: Kalkine Group   

After experiencing a period of consolidation that followed a sustained upward rally beginning in October 2023, the S&P/NZX 50 index broke decisively above a key resistance level at 12,881 points - an area previously marked by its former peak. This breakout suggests renewed bullish momentum in the market and signals the potential for further upside movement. If the current trend continues, the index may be poised to retest its most recent high, which lies around 13,250 points. Supporting this bullish outlook, the 14-day Relative Strength Index (RSI) is currently trending upward from the midpoint, indicating strengthening market momentum and improving investor sentiment.  

Our Stance: It could be said that the selling in the financials sector somewhat impacted the broader NZ market on 23 July. The broader markets are expected to be supported by the US trade deal with Japan. While the broader equity market will continue to be impacted by the trade developments, the investors are required to maintain their focus on corporate earnings. Amidst all these factors, they are required to be cautious.