Image Source : Krish Capital Pty Ltd

Index Update: On 27th May 2025, the broader NZ market closed the trading session in green amidst buying in the materials sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.28% to end the session at 12,582.330 and S&P/NZX 20 Index rose by 0.24% to 7,438.560. Also, S&P/NZX 10 Index encountered an increase of 0.28% to 12,456.140. Notably, S&P/NZX All Materials witnessed an increase of 1.98% to close at 1,004.260. However, S&P/NZX All Consumer Discretionary declined by 0.71% to 671.520.   

Macro Update: As per Fortnightly Economic Update dated 23rd May, the export-led recovery continues to gather pace, while the domestic economy has been gradually recovering. The Budget 2025 continues to target spending as well as policy initiatives which focus towards achieving a resilient, long-term growth economy, while, at the same time, maintaining fiscal restraint and a return to budget surplus by 2028/29.   

Top Market Movers: Among top gainers, Vital Limited (NZX: VTL) witnessed a rise of 45.45% to end the session at $0.40 per share. On the other hand, Trade Window Holdings Limited (NZX: TWL) declined by 4.47% to $0.171 per share.  

Commodity Update: The dollar remained weak Tuesday amid investor worries over a major U.S. tax and spending bill that could worsen the national debt. Global stocks and the euro rose Monday while U.S. markets were closed. Focus shifts to Senate debates on Trump’s tax-cut plan. Gold fell 0.68% to $3,370.90, silver 0.28% to 33.54, and copper 0.24% to 9599.20. Brent crude dipped 0.12% to $64.62 ahead of an OPEC+ meeting.  

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Source: Trading View, Analysis: Kalkine Group   

Following a recent pullback, the S&P/NZX 50 surpassed its previous high of 12,400 points and moved above the 50-day simple moving average — a key indicator of trend direction — signaling a potential recovery. Despite experiencing the recent minor correction, the index remains above the 12,400 level, suggesting the recovery trend is still intact. Additionally, the 14-day Relative Strength Index (RSI) is holding above its midpoint, reflecting continued positive market sentiment.   

Our Stance: It could be said that buying in the materials sector somewhat supported the broader NZ market on 27th May. While the fears related to the US budgetary outlook as well as uncertainties of trade policies might continue to impact the broader global markets, there is some optimism because of the delays in tariffs on EU. Moving forward, the macro-economic releases are expected to take center stage. Overall, the elevated geopolitical and fiscal risks hint at the careful monitoring from the investors.   

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