Source: Krish Capital Pty Ltd

Index Update: On 17th September 2025, the NZ market ended slightly lower amidst broad-based selling pressure. On the same day, S&P/NZX 50 Index witnessed a decline of 0.05% to end at 13,228.380 and S&P/NZX 20 Index fell by 0.24% to 7,632.790. Also, S&P/NZX 10 Index encountered a fall of 0.30% to close at 12,722.280. Notably, strong selling was witnessed in the consumer staples sector and S&P/NZX All Consumer Staples fell by 2.32%.  

Macro Update: As per Stats NZ, NZ’s seasonally adjusted current account deficit narrowed by $702 Mn to $3.4 Bn in the June 2025 quarter. This was the smallest deficit since the $3.1 Bn deficit in the June 2021 quarter. The smaller current account deficit was because of the $1.0 Bn narrowing of the primary income deficit. The services balance widened by $124 Mn in the quarter ended June 2025.  

Top Market Movers: Among top gainers, Metro Performance Glass Limited (NZX: MPG) witnessed a rise of 7.32% to end at $0.044 per share. On the other hand, Cooks Coffee Company Limited (NZX: CCC) fell by 7.69% to $0.24 per share.  

Commodity Update: The U.S. dollar hovered near four-year lows against the euro and a one-month low against the yen as markets awaited a widely expected 25-basis-point rate cut by the Fed. Focus shifts to Chair Powell’s comments for cues on the pace of easing, with 67.9 bps of cuts priced in for year-end. Gold slipped 0.14%, silver 1.28%, and copper 0.44%. Brent crude eased 0.10% after recent gains on Russian supply concerns. 

Source: Trading View, Analysis: Kalkine Group 

After beginning a short-term rally in April 2025, the S&P/NZX 50 index has recently revisited its 2024 peak at 13,270. Additionally, the index continues to register higher highs and higher lows, signaling that the uptrend is still intact. A decisive break above this resistance would strengthen bullish momentum and potentially pave the way for a test of the all-time high at 13,636. On the downside, immediate support lies at 12,750, with a breach of this level serving as an early warning signal. Meanwhile, the 14-day Relative Strength Index (RSI) is heading north from its midpoint, reflecting a positive market sentiment. 

Our Stance: It could be said that the selling in the consumer staples sector somewhat impacted the broader NZ market on 17th September. As of now, all eyes are on the US Fed’s decision regarding the interest rates. While there are expectations of a rate cut, the market players are required to focus on other macro-economic indicators also. RBNZ, in its release dated 20 August 2025, stated that the economic growth in NZ is anticipated to recover gradually.  

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