Broader NZ Market Ends in Green

Image Source : Krish Capital Pty Ltd

Index Update: On 30th June 2025, the NZ market closed the trading session in green amidst broad-based buying in the market. On the same day, S&P/NZX 50 Index witnessed a rise of 0.15% to end the trading session at 12,602.820 and S&P/NZX 20 Index rose by 0.14% to 7,392.010. Also, S&P/NZX 10 Index encountered an increase of 0.11% to 12,368.850. Notably, significant buying was witnessed in the consumer staples sector and S&P/NZX All Consumer Staples rose by 2.20%.   

Macro Update: In the Budget 2025, it was mentioned that the Government remains on track to meet the fiscal objectives of reducing core Crown expenses towards 30% of GDP, returning operating balance (before gains and losses, excluding ACC) to surplus as well as bending the debt curve so that it stops rising and begins to go down towards 40% of GDP.   

Top Market Movers: Among top gainers, Burger Fuel Group Limited (NZX: BFG) witnessed a rise of 9.38% to end the session at $0.35 per share. On the other hand, New Talisman Gold Mines Limited (NZX: NTL) declined by 5.80% to $0.065 per share.  

Commodity Update: The dollar hovered near a four-year low against the euro on Monday amid optimism over U.S. trade deals, boosting expectations of early Fed rate cuts. Uncertainty rose as President Trump abruptly ended trade talks with Ottawa. Gold increased 0.07% to $3,289.90, silver slipped 0.38% to $35.90, and copper fell 0.22% to $9,855.30. Brent crude fell 0.97% to $67.11 as easing geopolitical risks weighed on prices.  

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 the consumer staples sector somewhat supported the broader NZ market on 30th June. As per Budget 2025, the trade tensions have resulted in uncertainty in the broader global economy. Despite this, an economic recovery remains underway in NZ. While several developments are happening around trade deals with the US, investors are required to maintain a cautious stance amidst volatile economic conditions and commodity markets.