Broader NZ Market Witnesses Increased Selling Pressure

Image Source : Krish Capital Pty Ltd

Index Update: On 19th May 2025, the broader NZ market ended the trading session in red amidst robust selling in the materials sector. On the same day, S&P/NZX 50 Index witnessed a decline of 1.23% to end the session at 12,629.070 and S&P/NZX 20 Index fell by 1.19% to close at 7,474.300. Also, S&P/NZX 10 Index encountered a fall of 1.54% to end the session at 12,490.550. Notably, significant decline was witnessed in the materials sector and S&P/NZX All Materials fell by 2.68% to 1,038.580. However, S&P/NZX All Utilities rose by 0.60% to 3,570.650.   

Macro Update: As per Stats NZ, in the March 2025 quarter, the output producers price index (PPI) witnessed a rise of 2.1% and the input PPI increased 2.9% as compared to the December 2024 quarter. Notably, the farm expenses price index (FEPI) encountered a rise of 0.4% and the capital goods price index (CGPI) increased 0.5%. The largest output industry contributions were from electricity, gas, water and waste services (up by 26.2%), manufacturing (which was up 2.3%), and rental, hiring and real estate services (that rose by 1.4%).   

Top Market Movers: Among top gainers, Blis Technologies Limited (NZX: BLT) witnessed an increase of 7.14% to end the session at $0.015 per share. On the other hand, The Warehouse Group Limited (NZX: WHS) declined by 6.67%.   

Commodity Update: The dollar weakened Monday amid mixed Chinese economic data, highlighting domestic struggles and the impact of U.S. tariffs on exports. Meanwhile, the White House maintained pressure on trade partners. Gold surged 1.41% to $3,228.60, silver rose 0.72% to $32.58, while copper edged down 0.04% to $9,451.60. Brent crude slipped 0.20% to $65.27 as investors awaited Iran-U.S. nuclear talks and further Chinese economic indicators. 

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 minor correction over the past two sessions, 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 a fall in materials sector somewhat impacted the broader NZ market on 19th May 2025. As of now, the investors’ sentiments are being impacted by the worries related to the global trade and economic growth. In the recent past, the broader sentiments were supported by the positive developments in the US-China trade deal. Moving forward, the broader global markets might be impacted by the macro-economic news. On 22nd May, data about initial jobless claims is expected to be released.