Broader NZ Market Witnesses Selling Pressure

Index Update: On 17th December, the broader NZ market ended lower amidst selling in the financials sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.96% and S&P/NZX 20 Index encountered a fall of 1.15% to 7,563.780. Also, S&P/NZX 10 Index fell by 1.53% to end the session at 12,645.070. Notably, S&P/NZX All Financials witnessed selling pressure and there was a decline of 1.89% to close at 1,579.790.     

Macro Update: Stats NZ stated that NZ’s seasonally adjusted current account deficit widened by $153 Mn to $3.8 Bn in the quarter ended September 2025. The primary income balance widened by $435 Mn, and goods balance widened by $414 Mn. In the September 2025 quarter, the primary income deficit amounted to $3.0 Bn.   

Market Movers: Among top gainers, Santana Minerals Limited (NZX: SMI) witnessed a rise of 6.18% to end at $0.945 per share. On the other hand, TruScreen Group Limited (NZX: TRU) declined by 5.88%.   

Commodity Update: The U.S. dollar steadied on Wednesday, hovering near its lowest level since early October as soft labour market data kept investors cautious over the timing of the Federal Reserve’s next rate cut. Gold edged up 0.34% to USD 4,346.20, while silver jumped 4.05% to USD 65.85 and copper rose 0.43% to USD 11,679. Brent crude climbed 0.90% to USD 59.50 amid renewed geopolitical tensions linked to Venezuela.  

Source: Trading View, Analysis: Kalkine Group  

Following four straight sessions of modest advances, the S&P/NZX 50 Index recorded a sharp pullback, dropping 129.05 points, or 0.96%, to finish at 13,295.05. While the market is correcting from its record peak, the index continues to trade above a key support band aligned with the 2024 high. Technically, the short-term structure remains constructive, underpinned by an ongoing pattern of higher highs and higher lows and price action that is still well supported above critical levels. Provided this major support zone holds, the broader uptrend that began in October 2023 remains intact. Near-term support is located around 13,270, and maintaining this level is crucial to sustain bullish momentum and set the stage for another challenge of the all-time high. Conversely, a decisive break below 13,270 would signal a more pronounced correction, with scope for a retreat toward the 13,000 area before the primary uptrend resumes.  

Our Stance: It seems that the selling in the financials sector somewhat impacted the broader NZ market on 17th December. As of now, the broader US market is being affected by the employment report, which exhibited that the labor market remains weak. Moving forward, the macro-economic data points will continue to impact the broader global markets. Coming to the NZ, RBNZ (in the release dated 26 November 2025) stated that unemployment and measures of labour underutilisation have witnessed an increase. The measures of domestic financial stress have eased, with lower rates reducing the debt servicing pressures.