Broader NZ Market Ends in Green

Image Source : Krish Capital Pty Ltd

Index Update: On 10th June 2025, the NZ market ended the trading session higher amidst broad-based buying. On the same day, S&P/NZX 50 Index witnessed a rise of 0.20% to end at 12,564.420 and S&P/NZX 20 Index increased by 0.17% to 7,405.120. Also, S&P/NZX 10 Index encountered a rise of 0.25% to 12,353.180. Notably, consumer staples sector witnessed buying momentum and S&P/NZX All Consumer Staples rose by 1.53%.   

Macro Update: As per the FEU dated 6th June 2025, the OECD’s latest economic outlook warns that increased trade barriers as well as higher trade policy uncertainty would be causing global growth to slow. The Outlook predicts that global growth would be slowing from 3.3% in 2024 to 2.9% in 2025 and 2026. As per the release, the global factory output witnessed near-6% annualised growth in the 3 months ended February. Also, the early indicators reflect gains of ~5% have been sustained through to April.   

Top Market Movers: Among top gainers, Allied Farmers Limited (NZX: ALF) witnessed a rise of 5.63% to $0.75 per share. On the other hand, TruScreen Group Limited (NZX: TRU) declined by 8.33% to $0.022 per share.  

Commodity Update: The U.S. dollar held steady in narrow trading on Tuesday as investors stayed cautious amid ongoing U.S.-China trade talks ahead of key U.S. inflation data. Gold slipped 0.78% to $3,328.80, silver eased 0.42% to $36.64, and copper edged down 0.19% to $9,763.65. Brent crude rose 0.50% to $67.40, supported by geopolitical tensions and limited progress in U.S.-Iran nuclear discussions.  

Source: Trading View, Analysis: Kalkine Group   

Following a sustained upward rally that began in October 2023, the S&P/NZX 50 index appears to be transitioning into a consolidation phase. This is evidenced by the formation of a lower high and a higher low on the chart - typically a technical signal that the market may be entering a trading range. Unless there is a clear breakout above the previous resistance level at 12,881 points or a breakdown below the earlier support level at 12,254 points, this sideways movement is expected to persist in the near term. Additionally, the 14-day Relative Strength Index (RSI) is currently hovering around its midpoint, which reinforces the previous outlook. As a result, investors may need to wait for a decisive move in either direction before gaining greater clarity on the market’s next trend.  

Our Stance: It could be said that buying in consumer staples sector supported the broader NZ market on 10th June. As per the recent FEU, global trade developments continue to have a mixed impact on the domestic economic indicators. The FEU mentioned that the OECD’s NZ forecasts reflected the negative impact of increased uncertainty on investment as well as net exports, and the offset from reduced policy interest rates. Moving forward, the investors are required to remain cautious amidst volatile commodity and capital markets.