Broader NZ Market Ends in Red Amidst Decline in Energy Sector

Image Source : Krish Capital Pty Ltd

Index Update: On 11th July 2025, the broader NZ market closed the trading session in red amidst selling in the energy sector. On the same day, S&P/NZX 50 Index witnessed a fall of 0.58% to end at 12,686.680 and S&P/NZX 20 Index fell by 0.65% to 7,415.890. Also, S&P/NZX 10 Index encountered a decline of 0.87% to 12,289.830. Notably, significant selling was witnessed in the energy sector and S&P/NZX All Energy fell by 1.36% to end at 1,952.850. However, S&P/NZX All Materials increased by 1.21%.   

Macro Update: The Monetary Policy Committee decided to hold the OCR at 3.25%. As per the release, the annual consumers price inflation is expected to increase towards the top of the Monetary Policy Committee’s 1% - 3% target band over mid-2025. That being said, with the spare productive capacity in the economy as well as declining domestic inflation pressures, the headline inflation is anticipated to remain within the band and return to ~2% by early 2026.  

Top Market Movers: Among top gainers, Rua Bioscience Limited (NZX: RUA) witnessed a rise of 11.11% to $0.03 per share. On the other hand, Blis Technologies Limited (NZX: BLT) fell by 5.56%.    

Commodity Update: The U.S. dollar strengthened Friday amid escalating global trade tensions, as President Trump announced new tariffs and proposed 15–20% blanket levies on most trade partners. Gold climbed 0.57% to $3,344.70, and silver rose 1.39% to $37.83. Copper edged up 0.09% to $9,708.75. Brent crude gained 0.28% to $68.83 after a 2% decline triggered by tariff concerns and lowered OPEC demand forecasts.  

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. Currently, though the index is on a rally and approaching a significant resistance established by its previous high at 12,881 points; however, unless there is a clear breakout above the mentioned resistance level, this sideways movement is expected to persist in the near term. As a result, investors may need to wait for a clear move before gaining greater clarity on the market’s next trend.  

Our Stance: It could be said that the sell-off in the energy sector somewhat impacted the broader NZ market on 11th July. RBNZ stated that the increased export prices as well as reduced interest rates have been supporting the recovery in the NZ economy. However, increased global policy uncertainty and tariffs can reduce global economic growth. This can also slow the pace of NZ’s economic recovery, reducing the inflation pressures.