Broader NZ Market Ends in Red

Image Source : Krish Capital Pty Ltd

Index Update: On 1st August 2025, the broader NZ market ended the session lower amidst significant selling in the consumer discretionary sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.74% to end at 12,729.400 and S&P/NZX 20 Index fell by 0.65% to 7,454.640. Also, S&P/NZX 10 Index encountered a decline of 0.82%. Notably, significant selling was witnessed in the consumer discretionary sector and S&P/NZX All Consumer Discretionary fell by 2.02% to 706.260.   

Macro Update: As per Stats NZ, there were 33,979 new homes consented in Aotearoa New Zealand in the year to June 2025, reflecting a rise of 1.0% as compared to the year ended June 2024. The lift was mainly because of a 6.3% increase in stand-alone house consents, touching 15,858. On the other hand, consents for multi-unit homes declined 3.2% to 18,121 in the year to June 2025.  

Top Market Movers: Among top gainers, Comvita Limited (NZX: CVT) witnessed a rise of 8.70% to end at $0.50 per share. On the other hand, WasteCo Group Limited (NZX: WCO) declined by 5.88% to $0.016 per share.  

Commodity Update: The U.S. dollar is on track for its strongest weekly gain in nearly three years, bolstered by President Donald Trump's announcement of new tariffs on multiple trade partners. The move raised concerns over global demand, particularly for oil. In commodities, gold dipped 0.28% to $3,339.65, silver fell 0.18% to $36.07, copper rose 0.19% to 9,629.5, and Brent crude declined 0.11% to $71.65 per barrel. 

Source: Trading View, Analysis: Kalkine Group   

After experiencing a period of consolidation that followed a sustained upward rally beginning in October 2023, the S&P/NZX 50 index broke decisively above a key resistance level at 12,881 points - an area previously marked by its former peak. This breakout suggests renewed bullish momentum in the market and signals the potential for further upside movement. Currently, though experience a minor correction, the index is still forming higher highs and higher lows, providing further support to the previous outlook. Moreover, the 14-day Relative Strength Index (RSI) is trading near its midpoint, indicating a neutral investor sentiment.  

Our Stance: It could be said that the significant selling in the consumer discretionary sector somewhat impacted the broader NZ market on 1 August. As per the FOMC statement issued by the US Fed, the unemployment rate is low, and the labor market conditions are solid. Also, the inflation is somewhat elevated. The Committee will continue to assess the implications of incoming information for the broader economic outlook. Therefore, investors are required to closely track the macro-economic developments as well as information related to the trade policies.