Image Source : Krish Capital Pty Ltd

Index Update: On 8th July 2025, the broader NZ market closed the trading session in green amidst buying in the real estate sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.74% to end at 12,859.020 and S&P/NZX 20 Index rose by 0.49% to close at 7,530.290. Also, S&P/NZX 10 Index increased by 0.40% to close at 12,527.450. Notably, S&P/NZX Real Estate Select Index encountered a rise of 2.62% to 1,709.490 and S&P/NZX All Real Estate rose by 2.60%.   

Macro Update: As per Stats NZ, New Zealand household saving declined $392 Mn to -$1.6 billion in the March 2025 quarter, with the household spending increasing more than disposable income. As per the release, the New Zealand household net disposable income increased 1.5% to $60.6 Bn in the March 2025 quarter. The key driver of an increase in net disposable income was higher salaries and wages, up by 1.5%.  

Top Market Movers: Among top gainers, KMD Brands Limited (NZX: KMD) witnessed a rise of 5.77% to end at $0.275 per share. On the other hand, Rua Bioscience Limited (NZX: RUA) declined by 7.14% to $0.026 per share.  

Commodity Update: The dollar strengthened on Tuesday after President Trump announced new tariffs, effective August 1, on nations including Japan and South Korea. Gold rose 0.14% to $3,347.40, silver gained 0.38% to $37.04, and copper edged up 0.13% to $9,830.45. However, Brent crude slipped 0.29% to $69.37 as investors weighed the impact of the tariffs alongside a larger-than-expected OPEC+ output increase for August.  

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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. Currently, though the index is on a rally and approaching a significant resistance established by its previous high at 12,881 points; however, unless there is a clear breakout above the mentioned resistance level, this sideways movement is expected to persist in the near term. As a result, investors may need to wait for a clear move before gaining greater clarity on the market’s next trend.  

Our Stance: It could be said that the broader NZ market was supported by the buying in the real estate sector. The broader global markets were impacted by Donald Trump’s actions related to the trade tariffs. Moving forward, the volatile commodity and oil markets are expected to impact the investors’ sentiments. On 11th July, data about the monthly US federal budget is expected to be released, which can influence the broader capital markets.  

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