Broader NZ Market Ends Higher

                                                                     Source: Krish Capital Pty Ltd

Index Update: On 4^th September 2025, the broader NZ market ended in green amidst broad-based buying. On the same day, S&P/NZX 50 Index witnessed a rise of 0.45% to end at 13,133.200 and S&P/NZX 20 Index increased by 0.05% to 7,627.630. Also, S&P/NZX 10 Index witnessed a rise of 0.35% to close the session at 12,681.700. Notably, strong buying was witnessed in the real estate sector and S&P/NZX Real Estate Select Index increased by 1.40%.

Macro Update: As per Stats NZ, in the June 2025 quarter, the seasonally adjusted total building volume declined 1.8% as compared to the March 2025 quarter, with residential falling 2.95, and non-residential declining 0.4%. The total building value stood at $7.8 Bn, down 8.5% from the June 2024 quarter. Also, the total seasonally adjusted building volume declined 1.8% in the June 2025 quarter (after a 1.3% increase in the March 2025 quarter). 

Top Market Movers: Among top gainers, Me Today Limited (NZX: MEE) witnessed a rise of 9.23% to end at $0.071 per share. On the other hand, Blis Technologies Limited (NZX: BLT) declined by 5.56% to $0.017 per share.

Commodity Update: The U.S. dollar eased Thursday amid bond market jitters and weak labour data, bolstering expectations of a Fed rate cut this month. Commodities traded lower, with gold down 1.06% at $3,597.30, silver off 1.82% at $41.29, and copper easing to $9,932.70. Brent crude slipped 0.40% to $67.35, pressured by reports of a potential OPEC+ output hike and rising U.S. oil inventories, raising concerns over softer fuel demand.

Source: Trading View, Analysis: Kalkine Group

After beginning a short-term rally in April 2025, the S&P/NZX 50 index has recently revisited its 2024 peak at 13,270. Despite a brief pullback, the index continues to register higher highs and higher lows, signaling that the uptrend is still intact. A decisive break above this resistance would strengthen bullish momentum and potentially pave the way for a test of the all-time high at 13,636. On the downside, immediate support lies at 12,750, with a breach of this level serving as an early warning signal. Meanwhile, the 14-day Relative Strength Index (RSI) is heading north from its midpoint, reflecting a positive market sentiment.

Our Stance: It could be said that the strong buying in the real estate sector somewhat supported the broader NZ market on 4^th September. As of now, the broader equities are being impacted by the macro-economic releases and developments around tariffs. Also, the markets are expected to be influenced by the hopes around the rate cuts by the US Fed. While the NZ investors are required to focus on tariffs, they need to also assess the macroeconomic updates. On September 9, data about business employment data (June 2025 quarter) is expected to be released.