Broader NZ Market Ends in Green

Index Update: On 31st October 2025, the broader NZ market closed on a positive note amidst buying in the communications services sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.66% to end at 13,548.320 and S&P/NZX 20 Index increased by 0.69% to end at 7,758.530. Also, S&P/NZX 10 Index encountered a rise of 0.75% to close at 12,916.160. Notably, S&P/NZX All Communications Services witnessed an increase of 1.46% to end at 2,403.360.    

Macro Update: As per the FEU dated 23 October 2025, the easing rents as well as new housing costs, together making up 21% weight in the CPI, are down compared to the recent highs. This demonstrates weakness in the broader construction sector and reduced net migration. Notably, the rent inflation was at 6-year low (2.6%), down as compared to the annual rates of more than 4% which persisted over 2022 through 2024.   

Market Movers: Among top gainers, WasteCo Group Limited (NZX: WCO) witnessed a rise of 12.50% to end at $0.018 per share. On the other hand, Trade Window Holdings Limited (NZX: TWL) declined by 6.67% to $0.35 per share.  

Commodity Update: The U.S. dollar steadied near a three-month high in early Asian trade Friday as markets digested mixed cues from central bank moves, tech earnings, and a tentative U.S.-China tariff truce. Gold rose 0.23% to USD 4,026.50, while silver slipped 0.09% to USD 48.57, and copper gained 0.35% to USD 10,952.00. Brent crude fell 0.51% to USD 64.67, marking its third consecutive monthly decline.  

Source: Trading View, Analysis: Kalkine Group  

Following a brief corrective phase within a well-established broader uptrend marked by a consistent pattern of higher highs and higher lows, the S&P/NZX 50 Index has recently staged a breakout above its 2024 peak at 13,270. This upward breach confirms the continuation of the prevailing bullish structure and signals the potential for renewed upside momentum. Technically, the breakout opens the way for a possible retest of the all-time high at 13,636. Importantly, the former resistance level at 13,270 has now transitioned into a key support zone, which could underpin the next leg of the advance. Moreover, after experiencing a modest pullback, the index is presently rebounding from this newly established support suggests that the broader uptrend remains intact and the overall technical outlook continues positive.  

Our Stance: It could be said that the buying in communications services sector somewhat supported the broader NZ market on 31st October. Apart from earnings and the US Fed’s comments about the rate cuts, the investors are required to also track the developments happening around the trade policies. Notably, RBNZ highlighted upside and downside risks associated with the inflation outlook in NZ. The cautious behaviour by households and businesses might impact the broader economic recovery. The increased near-term inflation might be more persistent.