Image Source : Krish Capital Pty Ltd

Index Update: On 17th July 2025, the broader NZ market closed the trading session significantly higher amidst buying in the consumer staples sector. On the same day, S&P/NZX 50 Index witnessed a rise of 1.18% to end at 12,905.410 and S&P/NZX 20 Index rose by 1.33% to close at 7,566.100. Also, S&P/NZX 10 Index encountered an increase of 1.67% to end at 12,613.460. Notably, S&P/NZX All Consumer Staples witnessed a strong increase of 3.44%.    

Macro Update: As per Stats NZ, food prices rose 4.6% in the 12 months to June 2025, after the 4.4% increase during the 12 months to May 2025. The increased prices for the grocery food group and the meat, poultry, and fish group contributed most to the annual rise in food prices, up by 4.7% and 6.4%, respectively. Also, the dairy products have been driving the increased cost in food prices.   

Top Market Movers: Among top gainers, Promisia Healthcare Limited (NZX: PHL) rose by 10.64% to $0.52 per share. On the other hand, Metro Performance Glass Limited (NZX: MPG) declined by 10.00%.   

Commodity Update: The dollar weakened on Thursday amid reports that U.S. President Trump might fire Fed Chair Jerome Powell, shaking market confidence. Although Trump denied the dismissal, he criticised Powell for not cutting rates. Gold slipped 0.42% to $3344.90, while silver edged up 0.04% to $38.13 and copper fell 0.01% to $9634.15. Brent crude rose 0.39% to $68.69, supported by strong economic data and easing trade tensions.  

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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 has now broken 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 the 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: It could be said that the buying in the consumer staples sector somewhat supported the broader NZ market on 17th July. While the underlying economic conditions are fragile, the volatility in broader commodity market and political developments in the US can impact the sentiments of the investors over the near term. Furthermore, the earnings season might also impact the risk appetite of investors.  

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