Buying in Consumer Staples Sector Supports NZ Market

Index Update: On 16th December, the NZ market ended in green amidst broad-based buying momentum. On the same day, S&P/NZX 50 Index witnessed a rise of 0.13% to end at 13,424.950 and S&P/NZX 20 Index rose by 0.34% to close at 7,651.960. Notably, S&P/NZX 10 Index encountered a rise of 0.44% to 12,842.030. Some buying momentum was witnessed in the consumer staples sector and S&P/NZX All Consumer Staples rose by 1.77%.     

Macro Update: Stats NZ stated that food prices rose 4.4% in the 12 months ended November 2025, after the 4.7% rise in the 12 months to October 2025. Notably, elevated prices for the grocery food group (an increase of 4.6%), contributed most to the annual rise in food prices. This was followed by meat, poultry, and fish, which increased 7.7% annually.   

Market Movers: Among top gainers, Rua Bioscience Limited (NZX: RUA) witnessed an increase of 7.14% to end at $0.03 per share. On the other hand, Solution Dynamics Limited (NZX: SDL) declined by 4.41%.   

Commodity Update: The U.S. dollar slipped to near a two-month low in early Asian trade on Tuesday as investors awaited key economic releases, including the delayed November U.S. jobs report. Commodities traded lower, with gold down 0.39% to USD 4,318.50, silver falling 0.63% to USD 63.21, and copper easing 0.66% to USD 11,599.05. Brent crude declined 0.40% to USD 60.32 amid easing geopolitical concerns.  

Source: Trading View, Analysis: Kalkine Group  

The S&P/NZX 50 Index recorded a fourth straight session of modest gains, edging higher by 16.81 points, or 0.13%, to close at 13,424.96. The muted advance underscores an ongoing consolidation, with the index continuing to trade within a range defined by its recent record high and a major support zone around the 2024 peak. From a technical standpoint, the short-term trend remains positive, supported by a persistent sequence of higher highs and higher lows, along with price action holding well above key support. As long as this pivotal support area remains intact, the broader uptrend that started in October 2023 continues to be validated. Initial support is identified near 13,270, and defending this level is important to preserve bullish momentum and allow for a renewed test of the all-time high. However, a firm break below 13,270 would indicate a deeper corrective phase, potentially dragging the index back toward the 13,000 level before the primary uptrend re-emerges.  

Our Stance: While the upcoming macro-economic releases are expected to define trades in the US equities over the next few days, the investors are required to keep a close watch on the trade measures and commodity markets. Coming to the NZ markets, RBNZ (in a release dated 26 November) stated that greater uncertainty likely resulted in increased precautionary behaviour by households and businesses, which impacted the consumption and investment.