Broader NZ Market Ends in Green: A Quick Look

Image Source : Krish Capital Pty Ltd

Index Update: On 18th August 2025, the NZ market closed the session higher amidst broad-based buying. On the same day, the consumer staples sector witnessed buying momentum and S&P/NZX All Consumer Staples rose by 1.97% to end at 3,684.050 and S&P/NZX All Information Technology rose by 1.79% to 2,869.600. However, S&P/NZX All Materials witnessed a decline of 3.83% to 957.790. Notably, S&P/NZX 50 Index rose by 0.63% and S&P/NZX 20 Index increased 0.72%.   

Macro Update: Stats NZ released data about international travel (June 2025). As per the release, overseas visitor arrivals stood at 3.38 million in the June 2025 year, reflecting an increase of 162,000 from the June 2024 year. Notably, the biggest changes were witnessed in arrivals from Australia (up by 141,000 to 1.44 Mn), United Kingdom (a rise of 19,000 to 189,000), China (up 17,000 to 248,000), etc. NZ-resident traveller arrivals stood at 3.05 Mn in the June 2025 year. 

Top Market Movers: Among top gainers, Comvita Limited (NZX: CVT) witnessed a rise of 58.33% to end at $0.76 per share. On the other hand, Vulcan Steel Limited (NZX: VSL) declined by 5.35%.  

Commodity Update: The dollar steadied on Monday as markets awaited a key meeting between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy. At the same time, attention also turned to the Federal Reserve’s Jackson Hole symposium for policy signals. Precious metals firmed, with gold up 0.20% at $3,389.20, silver rising 0.24% to $38.07, and copper adding 0.14% to $9,779.80. Brent crude slipped 0.40% to $65.62 as supply concerns eased.   

Source: Trading View, Analysis: Kalkine Group  

Following a consolidation phase that came after a sustained rally starting in October 2023, the S&P/NZX 50 index has recently attempted to rebound and re-test the ascending trendline from below, though this effort has not yet succeeded. In the short term, the index has appeared a positive sign when surpassing a minor Inverse head and shoulders pattern. Hence, a breakout above the 12,983 level would signal renewed bullish momentum and potentially pave the way for a move to fresh highs. Conversely, Immediate support lies at 12,614 points, and a decisive break below this level could trigger a further decline toward the next support around 12,42. Additionally, the 14-day Relative Strength Index (RSI) has surpassed its midpoint in the last trading session, reflecting a shift from investor sentiment from negative to positive.  

Our Stance: It could be said that the buying in the consumer staples sector somewhat supported the broader NZ market on 18th August. As of now, the investors are focusing on the US-Ukraine meeting. The meeting can significantly influence geopolitical developments and the broader economic environment. Furthermore, the investors are required to track the US Fed speech, which can provide some view about the outlook for the rates.