Image Source : Krish Capital Pty Ltd

Index Update: On 25th August 2025, the NZ market ended in green amidst broad-based buying momentum. On the same day, S&P/NZX 50 Index witnessed a rise of 0.28% to end at 13,079.500 and S&P/NZX 20 Index rose by 0.11% to close at 7,659.250. Also, S&P/NZX 10 Index increased by 0.24% to end at 12,780.370. Notably, strong buying was witnessed in the energy sector and S&P/NZX All Energy increased by 1.85%.   

Macro Update: As per Stats NZ, the total volume of retail sales in NZ rose by 0.5% in the June 2025 quarter as compared to March 2025 quarter. The retail activity witnessed a modest increase in the quarter ended June, with growth witnessed in most of the industries. Notably, the electrical and electronic goods, supermarkets and grocery stores, and pharmaceutical retailing encountered the largest increases.   

Top Market Movers: Among top gainers, Metro Performance Glass Limited (NZX: MPG) witnessed a rise of 17.65% to end at $0.040 per share. On the other hand, Me Today Limited (NZX: MEE) declined by 8.70%.   

Commodity Update: The U.S. dollar attempted to recover on Monday after sliding to a four-week low against the euro, as dovish signals from the Federal Reserve spurred broad selling last week. Gold eased 0.27% to $3,409.15 and silver slipped 0.58% to $38.83, while copper edged up 0.36% to $9,780.30. Brent crude rose 0.16% to $67.33, supported by lingering geopolitical concerns and Fed-driven rate-cut expectations.   

Source: Trading View, Analysis: Kalkine Group  

Following a period of consolidation that succeeded the sustained rally beginning in October 2023, the S&P/NZX 50 index has recently moved above its ascending trendline, signaling the potential resumption of its prior upward trajectory. In the short term, a breakout above the recent minor high at 12,983 would likely provide further momentum, positioning the index to retest the 2024 peak at 13,270. A confirmed move through this resistance level would reinforce bullish sentiment and could set the stage for a challenge of the historical high at 13,636. Furthermore, the 14-day Relative Strength Index (RSI) is trading above its midpoint, underscoring strengthening investor confidence in the near term.   

Our Stance: It could be said that buying in the energy sector somewhat supported the broader NZ market on 25 August. As of now, the broader global markets are being supported by the comments from the US Federal Reserve. There are expectations of the easing of monetary policy. Furthermore, the investors are required to closely track the developments happening around trade policies, which can influence the outlook of the rate cycle.  

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