Broader NZ Market Ends on a Somewhat Flat Note

Image Source : Krish Capital Pty Ltd

Index Update: On 7th July 2025, the broader NZ market ended the trading session on a flat note amidst buying in the materials sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.01% to end at 12,764.950 and S&P/NZX 20 Index increased by 0.06% to 7,493.460. Also, S&P/NZX 10 Index encountered a decline of 0.03% to 12,478.010. Notably, S&P/NZX All Materials witnessed a rise of  3.07% to close at 938.650. However, S&P/NZX All Information Technology fell by 0.83%.   

Macro Update: The Treasury released interim financial statements of the Government of NZ for the 11 months ended 31 May 2025. The net core Crown debt of $180.3 Bn (41.8% of GDP) was broadly in line with the forecast. Notably, as the core Crown residual cash was favourable to forecast, this and movements in non-cash items contributed to the net core Crown debt result. Also, the gross debt at $202.5 Bn (47.0% of GDP) was smaller than the expectations by $7.2 Bn.   

Top Market Movers: Among top gainers, Allied Farmers Limited (NZX: ALF) witnessed a rise of 5.33% to end at $0.79 per share. On the other hand, Blis Technologies Limited (NZX: BLT) declined by 5.00% to $0.019 per share.  

Commodity Update: The U.S. dollar stayed near its lowest since 2021 versus the euro and its weakest since 2015 against the Swiss franc on Monday, as markets awaited trade headlines ahead of President Donald Trump's tariff deadline. Gold fell $0.82% to $3,319.10, silver slipped 0.37% to $36.99, copper declined 0.37% to $9,830.45, and Brent crude dropped 1.11% to $67.50 amid OPEC+ output hike concerns.  

Source: Trading View, Analysis: Kalkine Group   

Following a sustained upward rally that began in October 2023, the S&P/NZX 50 index appears to be transitioning into a consolidation phase. This is evidenced by the formation of a lower high and a higher low on the chart - typically a technical signal that the market may be entering a trading range. Unless there is a clear breakout above the previous resistance level at 12,881 points or a breakdown below the earlier support level at 12,254 points, this sideways movement is expected to persist in the near term. Additionally, the 14-day Relative Strength Index (RSI) is currently hovering around its midpoint, which reinforces the previous outlook. As a result, investors may need to wait for a decisive move in either direction before gaining greater clarity on the market’s next trend.  

Our Stance: It could be said that the broader NZ market ended on a flat note on 7 July. As of now, the broader markets and investors’ sentiments are being impacted by the trade uncertainty. These renewed trade tensions might also make the earnings season volatile. On July 10, the data about initial jobless claims is expected to be released, which can further influence the broader equity markets. Therefore, the investors are required to maintain a cautious stance.