Image Souce: Krish Capital Pty Ltd

Index Update: On 11th December 2024, the NZ market closed higher amidst broad-based buying. On the same day, significant buying was witnessed in the industrials sector. Also, S&P/NZX 50 Index increased by 0.30% to end the session at 12,761.190 and S&P/NZX 20 Index rose by 0.26% to 7,667.020. Also, S&P/NZX All Industrials encountered an increase of 1.64%. However, S&P/NZX All Utilities witnessed a fall of 0.98%.    

Macro Update: Total actual filled jobs in the September 2024 quarter were 2.3 million, as per Stats NZ. In the September 2024 quarter, total seasonally adjusted filled jobs were down 0.7% (16,763 jobs) as compared to June 2024 quarter. For the year ended September 2024, total gross earnings increased 5.9% ($9.8 billion) as compared to the year ended September 2023.  

Top Market Movers: Among top gainers, AoFrio Limited (NZX: AOF) witnessed a rise of 20.88% to end the session at $0.11 per share. On the other hand, Santana Minerals Limited (NZX: SMI) encountered a fall of 11.11% to $0.48 per share.  

Commodity Update: The U.S. dollar reached a two-week high against the yen on Wednesday, driven by anticipation of U.S. inflation data that could signal the pace of future Federal Reserve interest rate cuts. In commodities, gold climbed 0.71% to $2,738 per ounce, silver rose 0.20% to $32.81 per ounce, and copper gained 0.64%, reaching $9,300 per ton. Brent crude increased by 0.40%, settling at $72.47 per barrel. The rise in oil prices came amid optimism over stimulus measures in China, the world's largest importer, while traders awaited further insights into the U.S. economy and oil inventories. 

Source: Trading View, Analysis: Kalkine Group  

In July 2024, the S&P/NZX 50 index surpassed both the neckline of a Head and Shoulders pattern on the daily chart and a key resistance level marked by its 2023 high. This breakout indicates that the uptrend, which started in November 2023, is likely to persist and could push the index toward its historical peak from 2021. Moreover, since the break-out, the index has been forming higher highs and higher lows, reinforcing the ongoing uptrend. Furthermore, the 14-day Relative Strength Index (RSI) is trading near its midpoint, indicating neutral market sentiment in the short-term. 

 
Our Stance: It could be said that the broader NZ market was supported by the buying in the industrials sector. It seems that the market participants are looking for the further evidence which can help them assess the health of the US economy. The inflation data might also provide some idea about the expected rate cuts from the US Federal Reserve. On 13th December, Stats NZ is expected to release data about international migration (October 2024).  

You Are a Few Steps Away From Gaining Smart Market Insights

Sign up/Login Now and Gain Access to Exciting Opportunities from Investor and Resource Space!