Broader NZ Market Ends in Green Amidst Buying in Financials Sector

Image Source : Krish Capital Pty Ltd

Index Update: On 23rd April 2025, the broader NZ market ended the trading session higher amidst buying in the financials sector. On the same day, S&P/NZX 50 Index witnessed a rise of 1.01% to end the session at 11,956.470 and S&P/NZX 20 Index rose by 1.19% to 7,103.630. Also, S&P/NZX 10 Index encountered a rise of 1.90% to 11,876.370. Notably, financials sector witnessed a strong buying, and S&P/NZX All Financials rose by 2.76%.  

Macro Update: As per the FEU dated 17th April 2025, The Real Estate Institute of New Zealand’s house price index witnessed an increase in March for 5th consecutive month. The increase was 0.3% (seasonally adjusted). As per the index, house prices rose 0.8% for the quarter. However, they are still down 0.7% on last year. Furthermore, the release mentioned that global financial markets reflected some calmness recently as a result of a slowing pace of news related to tariffs.  

Top Market Movers: Among top gainers, Gentrack Group Limited (NZX: GTK) witnessed an increase of 6.47% to end the session at $10.86 per share. On the other hand, Santana Minerals Limited (NZX: SMI) encountered a fall of 7.09% to $0.59 per share. 

Commodity Update: The U.S. dollar surged then stabilized Wednesday as President Trump eased investor fears by backing away from firing Fed Chair Jerome Powell. This reassurance, along with optimism over trade deals, lifted market sentiment. Gold dropped 1.68% to $3,362.25, silver slipped 0.74% to $32.65, and copper dipped 0.08% to 9,384.15. Brent crude rose 1% to $68.12 amid U.S. sanctions on Iran and a sharp decline in U.S. crude stockpiles. 

Source: Trading View, Analysis: Kalkine Group   

Following a break below the upward trendline that had held since November 2024 and showing signs of weakness, the S&P/NZX 50 index has continued to fall beneath a key support level — the neckline of a Head & Shoulders formation — suggesting the potential for further downside. This bearish momentum may push the index toward a major support zone around 11,500 points. At present, the index is showing an early sign of stabilization with a possible bullish divergence emerging on the 14-day Relative Strength Index (RSI) in its oversold territory. However, in order to signal a possible recovery, the index should manage to surpass its previous peak at 12,400 points.  

Our Stance: It could be said that robust buying in the financial sector supported the broader NZ market on 23rd April 2025. As of now, there is some sort of optimism in the broader global and NZ markets after President Trump’s comments focusing on tariff reductions with China. Furthermore, the global markets were positively affected after the President said that he has no intention to fire Powell (the US Fed Chair). Moving forward, the markets are expected to be impacted by the macro-economic releases and earning reports. Therefore, investors are required to carefully monitor such macro developments.