Broader NZ Market Ends in Green

Image Source : Krish Capital Pty Ltd

Index Update: On 14th April 2025, the broader NZ market closed the session higher amidst buying in the financials sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.74% to 12,107.540 and S&P/NZX 20 Index increased by 0.85% to 7,204.810. Also, S&P/NZX 10 Index encountered a rise of 0.98% to 11,972.570. Notably, significant buying was witnessed in the financial sector and S&P/NZX All Financials rose by 3.98% to 1,358.080. However, S&P/NZX All Consumer Staples declined by 0.76%.  

Macro Update: Stats NZ released electronic card transactions for March 2025. In March 2025, the spending in the retail industries fell 0.8% (or $52 Mn) and spending in the core retail industries declined 0.8% (or $46 Mn) as compared to February 2025. By the retail spending category, durables were down by $39 Mn, hospitality was down by $14 Mn, and fuel was down $12 Mn.  

Top Market Movers: Among top gainers, KMD Brands Limited (NZX: KMD) witnessed a rise of 6.25% to NZ$0.34 per share. On the other hand, Being AI Limited (NZX: BAI) declined by 8.93%.  

Commodity Update: The U.S. dollar weakened Monday, hovering near a three-year low after a volatile week triggered by President Trump’s tariff plans, which rattled global markets. Investor confidence in the dollar wavered as fears of a trade war grew. Gold reached a record high at $3,248.90, up 0.13%, while silver slipped 0.25% to $31.85. Copper rose 0.19% to $9,163.20. Brent crude fell 0.30% to $64.56 due to concerns about slowing global growth. 

Source: Trading View, Analysis: Kalkine Group   

Following a break below the upward trendline that had held since November 2024 and showing signs of weakness, the S&P/NZX 50 index has continued to fall beneath a key support level — the neckline of a Head & Shoulders formation — suggesting the potential for further downside. This bearish momentum may push the index toward a major support zone around 11,500 points. At present, the index is rebounding near this strong support area and showing early signs of stabilization, with a possible bullish divergence emerging on the 14-day Relative Strength Index (RSI) in its oversold territory. This could signal a possible recovery in case the index manages to surpass its previous peak at 12,400 points.  

Our Stance: It could be said that the buying in the financial sector supported the broader momentum in the NZ market. Moving forward, the global uncertainties, mainly around the US tariffs, might continue to impact the investor sentiment. Apart from the tariff-related news, the broader global and NZ markets are expected to be affected by the earning reports. The investors need to closely track the numbers and commentaries from the company’s top management to get a broader view of the current macro-economic environment.