Broader NZ Market Ends on a Flat Note

Image Source : Krish Capital Pty Ltd

Index Update: On 14th May 2025, the broader NZ market closed, more or less, on a flat note. S&P/NZX 50 Index witnessed a marginal decline of 0.06% to end the session at 12,779.260 and S&P/NZX 20 Index encountered a fall of 0.03% to close at 7,569.970. However, S&P/NZX 10 Index witnessed a marginal rise of 0.07% to end at 12,664.990. Notably, decline was witnessed in the real estate sector and S&P/NZX Real Estate Select Index fell by 1.05% to 1,575.930. S&P/NZX All Financials encountered a rise of 0.32%.   

Macro Update: NZ had a net migration gain of 26,400 in the March 2025 year, as per provisional estimates by Stats NZ. This was well down from the gain of 100,400 during the March 2024 year. The decline in net migration was primarily because of fewer migrant arrivals, even though departures increased to a provisional annual record. The provisional net migration gain of 71,200 non-New Zealand citizens in the March 2025 year reflect a decline from the net gain of 145,600 during the March 2024 year.   

Top Market Movers: Among top gainers, Green Cross Health Limited (NZX: GXH) witnessed a rise of  9.33% to end the session at $0.82 per share. On the other hand, New Talisman Gold Mines Limited (NZX: NTL) declined by 11.11%.    

Commodity Update: The U.S. dollar steadied Wednesday after its sharpest drop in over three weeks, driven by weaker U.S. inflation data that strengthened hopes for Fed rate cuts. Meanwhile, easing global trade tensions also supported market sentiment. Gold slipped 0.34% to $3,236.60, silver fell 0.92% to $32.79, and copper dipped 0.31% to $9,578.40. Brent crude edged up 0.10% to $66.53 amid a U.S.-China tariff truce and a weaker dollar.   

After a correction, the S&P/NZX 50 broke above its previous peak of 12,400 points and crossed the 50-day simple moving average, a key trend-following indicator - suggesting a potential recovery is underway. Additionally, in its most recent session, the index broke above the upward trendline that has been in place since October 2023, near the 12,750-point level, reinforcing the previous outlook. Moreover, the 14-day Relative Strength Index (RSI) is rising above the midpoint, indicating a positive market sentiment.   

Our Stance: It could be said that the robust buying in the materials sector somewhat supported the broader NZ markets. The optimism in the broader US markets was visible on 12th May 2025 after the positive development related to the US-China trade deal. On 12th May, NASDAQ Composite Index witnessed a rise of 4.35% to end at 18,708.34. The momentum was also supported by hopes that the economy might not go into recession. While there can be some favourable short-term momentum, the persistent geopolitical risks require caution from the market players.