Broader NZ Market Ends in Red

Image Source : Krish Capital Pty Ltd

Index Update: On 23rd June 2025, the broader NZ market closed lower after significant selling in the energy sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.29% to end at 12,532.650 and S&P/NZX 20 Index fell by 0.38% to 7,362.590. Also, S&P/NZX 10 Index encountered a fall of 0.33% to 12,323.780. Notably, significant selling was witnessed in the energy sector and S&P/NZX All Energy fell by 1.86%.   

Macro Update: As per Treasury NZ, new funding in Budget 2025 makes sure that New Zealanders can get access timely and quality healthcare. It also highlighted the funding increase of $5.5 Bn for hospital and specialist services, primary care, and community and public health, and $447 Mn in order to expand access to urgent care as well as after-hours services throughout NZ. Treasury NZ also added that by increasing the stock of capital in NZ, Investment Boost is projected to lift GDP by 1% and wages by 1.5% over the next 20 years.  

Top Market Movers: Among top gainers, Smartpay Holdings Limited (NZX: SPY) witnessed a rise of 11.44% to $1.12 per share. On the other hand, Rua Bioscience Limited (NZX: RUA) declined by 10.71%.  

Commodity Update: The U.S. dollar edged up on Monday as investors sought safety amid Middle East tensions and waited for Iran’s response to U.S. strikes on its nuclear facilities. Gold slipped 0.16% to $3,380.95, while silver rose 0.09% to $36.05. Copper dipped 0.21% to $9,634.40. Brent crude jumped 1.92% to $78.93, its highest since January, as U.S. support for Israeli attacks on Iran fueled supply concerns.  

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 selling in the energy sector somewhat impacted the broader NZ market on 23rd June. With US entering the Israel’s war against Iran, the market participants have been closely tracking the conflict in the Middle East. The war has the potential to significantly impact oil prices and broader commodity markets. Amidst these trends, the market players are required to be cautious when it comes to investing in risky assets.