Broader NZ Market Closes on a Flat Note

Image Source : Krish Capital Pty Ltd

Index Update: On 6th August 2025, the broader NZ market closed the trading session on a flat note. On the same day, S&P/NZX 50 Index closed the session in green, rising by just 0.02% to 12,880.160. On the same day, S&P/NZX 20 Index increased by 0.06% to end at 7,557.080 and S&P/NZX 10 Index declined by 0.03% to 12,631.050.  Notably, significant buying was witnessed in the technology sector and S&P/NZX All Information Technology increased 1.97% to 2,855.130.   

Macro Update: As per Stats NZ, NZ’s seasonally adjusted unemployment rate stood at 5.2% in the June 2025 quarter as compared to 5.1% in the March 2025 quarter and 4.7% in the June 2024 quarter. There were 158,000 unemployed people (seasonally adjusted) in the quarter ended June 2025 as compared to 156,000 in the March 2025 quarter. Annually, unemployment increased 16,000 people (or 11.1%).   

Top Market Movers: Among top gainers, TruScreen Group Limited (NZXL: TRU) rose by 5.88% to end at $0.018 per share. On the other hand, Scott Technology Limited (NZX: SCT) declined by 6.19% to $1.97 per share.  

Commodity Update: The dollar remained rangebound on Wednesday as investors awaited U.S. President Donald Trump's nominee for the Federal Reserve Board. Gold dipped 0.09% to $3,431.60, while silver inched up 0.02% to $37.83. Copper rose 0.17% to $9,660.80. Brent crude rebounded 0.40% to $66.93 from a five-week low, supported by concerns over supply disruptions following Trump’s tariff threats on India for its Russian oil imports.  

Source: Trading View, Analysis: Kalkine Group  

Following a consolidation phase that came after a sustained rally starting in October 2023, the S&P/NZX 50 index has recently attempted to rebound and re-test the ascending trendline from below, though this effort has not yet succeeded. In the short term, caution is warranted as the index has broken below a minor double top formation. Immediate support lies at 12,614 points, and a decisive break below this level could trigger a further decline toward the next support around 12,421. Conversely, a breakout above the 12,983 level would signal renewed bullish momentum and potentially pave the way for a move to fresh highs. Additionally, the 14-day Relative Strength Index (RSI) has surpassed its midpoint in the last trading session, reflecting a shift from investor sentiment from negative to positive. 

Our Stance: With the developments happening around trade policies, the markets are being influenced by the corporate earnings as well. As per the FEU dated 31 July 2025, despite the uncertainty and volatility due to the US trade policy in recent months, global growth remained steady. NZ’s risk exposure comes from a combination of factors, such as the mix of its export products, market diversification as well as unique characteristics, like geographic remoteness and exposure to extreme weather and natural disasters.