Broader NZ Market Ends in Green Amidst Buying in Financials Sector

Image Source : Krish Capital Pty Ltd

Index Update: On 4th July 2025, the NZ market ended the trading session in green, with significant buying momentum witnessed in the financials sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.49% to end at 12,766.600 and S&P/NZX 20 Index rose by 0.56% to close at 7,488.960. Also, S&P/NZX 10 Index encountered a rise of 0.46% to end at 12,481.390. Notably, significant buying was witnessed in the financial sector and S&P/NZX All Financials rose by 2.48%.   

Macro Update: The Treasury released interim financial statements of the Government of NZ for the 11 months ended 31 May 2025. The core Crown tax revenue stood at $111.2 Bn, which was $0.6 Bn (0.6%) above forecast. Notably, the corporate tax revenue amounted to $0.7 Bn (4.4%) above forecast, because of stronger than forecast Portfolio Investment Entity (PIE) tax. Also, the core Crown expenses stood at $128.7 billion, which were $0.3 billion (0.2%) above the forecast.   

Top Market Movers: Among top gainers, Blis Technologies Limited (NZX: BLT) witnessed a rise of 11.11% to end at $0.02 per share. On the other hand, PaySauce Limited (NZX: PYS) declined by 5.00%.   

Commodity Update: The dollar held firm on Friday after President Trump secured his tax cut bill, and global pressure intensified for trade deals with the U.S. A strong jobs report delayed expectations for a Fed rate cut, lifting the greenback from multi-year lows. Gold edged down 0.09% to $3,340, silver slipped 0.37% to 36.94$, copper dropped 0.37% to 9921.00$, while Brent crude inched up 0.01% to $68.81 amid anticipation over Trump’s upcoming tariff decisions.   

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 financial sector somewhat supported the broader NZ market on 4 July 2025. As of now, it seems that the broader global markets are being impacted by the macroeconomic news, with the latest strong jobs report reducing the anticipation for the US Fed to cut the rates soon. Amidst the volatile currency and commodity markets, the investors are required to maintain a cautious stance. The fluctuations in the global markets might also have an impact on the NZ markets.