Broader NZ Market Ends Marginally Higher

Image Source : Krish Capital Pty Ltd

Index Update: On 20th May 2025, the broader NZ market closed marginally higher amidst buying in the communications services sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.12% to end the session at 12,644.230 and S&P/NZX 20 Index increased by 0.28% to 7,495.250. Also, S&P/NZX 10 Index encountered a rise of 0.22% to close at 12,518.180. Notably, S&P/NZX All Communications Services witnessed an increase of 1.30% to end at 2,052.910. However, S&P/NZX All Information Technology fell by 1.44%.   

Macro Update: As per RBNZ Financial Stability Report, non-performing loans have been hovering around the peak and they could fall in the upcoming months, as debt-servicing costs begin to decline, easing the financial stress on borrowers. Furthermore, the general insurers have witnessed reduced claims over the past year as well as replacement costs have been moderated. They are implementing risk-based pricing more widely. Furthermore, the conditions in global reinsurance markets have been more favourable.  

Top Market Movers: Among top gainers, Vector Limited (NZX: VCT) witnessed a rise of 3.91% to NZ$4.25 per share. On the other hand, Being AI Limited (NZX: BAI) declined by 34.53% to end at $0.091 per share.   

Commodity Update: The dollar remained range-bound Tuesday after a week of declines, pressured by the Fed’s cautious economic outlook and looming U.S. fiscal deficit concerns. Gold slipped 0.74% to $3,209.65, silver fell 0.48% to $32.35, and copper eased 0.37% to $9,487.05. Brent crude edged up 0.10% to $65.66 amid potential breakdowns in U.S.-Iran nuclear talks, dampening hopes for increased Iranian oil exports.  

Source: Trading View, Analysis: Kalkine Group  

The S&P/NZX 50 Index recorded a modest gain in the latest session, rising 15.15 points and forming a small bullish candlestick on the daily chart. The index remains above its 21-period Simple Moving Average (SMA), which continues to act as dynamic support, reinforcing the short-term uptrend. A key support zone near 12,380 remains in focus. Holding above this level is critical to preserving recent gains and sustaining bullish momentum. Continued strength around this area would further solidify the positive near-term outlook. From a broader perspective, the weekly chart also shows the index trading above its 21-period SMA, affirming the presence of a longer-term uptrend. This alignment across both daily and weekly timeframes highlights a resilient technical structure, suggesting that upside potential remains intact, even in the face of short-term fluctuations.  

Our Stance: It could be said that a buying in the communications services sector somewhat helped the broader NZ market. The geopolitical risks as well as volatile commodity prices exhibit that investors are required to take a cautious approach over the near term. While the broader global markets might get impacted by the earnings from the big retailers, investors can also track the macro-economic developments. On 22nd May, the data about S&P flash U.S. manufacturing PMI is expected to be released.