Broader NZ Market Witnesses Strong Buying

Index Update: On 26th February, the broader NZ market witnessed strong buying momentum, with positive momentum witnessed in the IT sector. On the same day, S&P/NZX 50 Index witnessed a rise of 1.07% to end at 13,670.710 and S&P/NZX 20 Index rose by 1.07% to 7,755.800. Also, S&P/NZX 10 Index rose by 1.11%. Notably, S&P/NZX All Information Technology witnessed a rise of 3.48%.     

Macro Update: As per Stats NZ, the average weekly household disposable income rose from $1,977.70 to $2,077.70 during the 12 months ended June 2025. This reflects a rise of 5.1% from the previous year (not adjusting for inflation). For homeowners with mortgages, the total mortgage payments rose 4.9% over the year.  

Market Movers: Among top gainers, Gentrack Group Limited (NZX: GTK) witnessed a rise of 7.63%. On the other hand, Pacific Edge Limited (NZX: PEB) declined by 11.11%.   

Commodity Update: The U.S. dollar traded softer in early Asian hours on Thursday as upbeat earnings from Nvidia supported broader risk sentiment, while markets awaited clarity on fresh U.S. import tariffs. Precious metals eased, with gold declining 0.52% to USD 5,199.00, silver slipping 2.54% to USD 88.68, and copper down 0.38% to USD 13,279.00. Brent crude edged up 0.30% to USD 71.12, holding near seven-month highs despite rising U.S. inventories.  

Source: Charts by TradingView, Analysis: Kalkine Group  

The S&P/NZX 50 Index delivered a solid advance in the most recent session, climbing 145.14 points, or 1.07%, and decisively breaking above the ascending trendline that has been in place since April 2025, an outcome that reinforces a constructive short-term bias. Having already moved beyond the resistance defined by the December 2024 high, that level is now transitioning into a support zone. At this stage, the index is confronting a single overhead barrier near 13,375.71, corresponding to its prior peak and the threshold for establishing a new high. A successful break above this level would likely unlock further upside momentum. Conversely, failure to do so could see the market consolidate within a range bounded by the record high and nearby support. Supporting the improving technical tone, the RSI is turning higher from its midpoint, signalling strengthening positive market sentiment.  

Our Stance: As of now, it seems that after recent volatility and sell-offs on AI disruption fears, markets have shown stabilisation with renewed buying in tech and semiconductor names. However, there are ongoing concerns about tech valuations, AI bubble risk and broader market volatility, which investors are watching closely. Coming to the NZ markets, the main index has been trending modestly up amid strong earnings and global tech-led sentiment boosting local equities. Corporate results show earnings improvements for some companies, though there are macro-level challenges.