Broader NZ Market Ends Marginally Higher

Image Source : Krish Capital Pty Ltd

Index Update: On 29th July 2025, the broader NZ market closed higher after significant buying in the financials sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.20% to end at 12,936.410 and S&P/NZX 20 Index increased by 0.17% to close at 7,588.090. Also, S&P/NZX 10 Index encountered a rise of 0.13% to 12,693.330. Notably, S&P/NZX All Financials witnessed a rise of 2.07% to close at 1,604.600. On the other hand, S&P/NZX All Consumer Discretionary fell by 0.75%.   

Macro Update: As per RBNZ Chief Economist Paul Conway, the global tariffs and economic uncertainty are likely to mean less inflation pressures in NZ as well as a pullback in business investment and household spending. However, the economy is currently helped by increased export prices and reduced interest rates. Mr. Conway added that as a small and open economy, NZ is significantly impacted by global developments.  

Top Market Movers: Among top gainers, TruScreen Group Limited (NZX: TRU) witnessed a rise of 5.88% to end at $0.018 per share. On the other hand, 2 Cheap Cars Group Limited (NZX: 2CC) fell by 11.11% to $0.56 per share.   

Commodity Update: The euro continued to struggle after the U.S.-EU trade deal largely favoured the U.S., dampening optimism for Europe’s economy. Gold saw a slight rise of 0.023% to $3,374.70, while silver jumped 0.27% to $38.31. Copper dipped 0.04% to $9,792.90. Brent crude gained 0.10% to $70.09, driven by supply concerns after President Trump shortened Russia’s war deadline and positive U.S. trade developments eased EU tariff fears, raising hopes for higher energy demand.  

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. If the current trend continues, the index may be poised to retest its most recent high, which lies around 13,250 points. Supporting this bullish outlook, the 14-day Relative Strength Index (RSI) is currently trending upward from the midpoint, indicating strengthening market momentum and improving investor sentiment.  

Our Stance: As of now, it seems that the market participants are focusing on the interest rate decision by the US Fed, which can impact the broader movement of the markets. Moving forward, investors are required to closely track the macro-economic developments which can impact the investors’ risk appetite. On July 31, data about the initial jobless claims is expected to be released. Overall, the volatility in the financial markets and uncertainty around trade policies continue to weigh over the investors’ sentiments.