Broader NZ Market Ends on a Flat Note: A Quick Look

Image Source : Krish Capital Pty Ltd

Index Update: On 13th August 2025, the broader NZ market ended the trading session on a flat note, with S&P/NZX 50 Index increasing by just 0.05% to end the trading session at 12,766.540. On the same day, S&P/NZX 20 Index witnessed a rise of 0.10% to close at 7,479.720 and S&P/NZX 10 Index rose by 0.15% to 12,518.140. Notably, significant buying was witnessed in the materials sector and S&P/NZX All Materials increased by 1.28% to 940.580.   

Macro Update: On August 13, Stats NZ released data about electronic card transactions (July 2025). In July 2025, the spending in the retail industries rose 0.2% ($13 Mn) and spending in the core retail industries remained relatively flat (up by only $1.5 Mn) as compared to June 2025. By the retail spending category, consumables increased $14 Mn (or 0.5%), motor vehicles (excluding fuel) rose by $10 Mn (or 5.2%), hospitality was up by $7.2 Mn (or 0.5%), etc.   

Top Market Movers: Among top gainers, New Talisman Gold Mines Limited (NZX: NTL) witnessed a rise of 8.00% to $0.054 per share. On the other hand, AoFrio Limited (NZX: AOF) declined by 8.33% to $0.077 per share.  

Commodity Update: The dollar weakened on Wednesday after soft U.S. inflation data fueled expectations of a Fed rate cut next month, while President Trump's political moves further pressured the currency. Gold rose 0.12% to $3,402.90, silver gained 0.59% to $38.22, and copper edged up 0.06% to $9,834.55. Brent crude was flat at $66.15 after a prior drop, as rising U.S. crude stockpiles signaled the summer demand season’s end.  

Source: Trading View, Analysis: Kalkine Group  

Following a consolidation phase that came after a sustained rally starting in October 2023, the S&P/NZX 50 index has recently attempted to rebound and re-test the ascending trendline from below, though this effort has not yet succeeded. In the short term, caution is warranted as the index has broken below a minor double top formation. Immediate support lies at 12,614 points, and a decisive break below this level could trigger a further decline toward the next support around 12,421. Conversely, a breakout above the 12,983 level would signal renewed bullish momentum and potentially pave the way for a move to fresh highs. Additionally, the 14-day Relative Strength Index (RSI) has surpassed its midpoint in the last trading session, reflecting a shift from investor sentiment from negative to positive.  

Our Stance: It could be said that the broader US markets witnessed the effect of softer inflation data, raising the expectations that the US Fed might cut the interest rates in the next month. Amidst the expectations about the rate cuts, the investors are required to be cautious about the developments happening around the trade policies. On August 25, Stats NZ is expected to release the data about retail trade survey (June 2025 quarter).