Buying in Healthcare Sector Supports NZ Market

Image Source : Krish Capital Pty Ltd

Index Update: On 15th May 2025, the broader NZ market was ended higher amidst robust buying in the healthcare sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.79% to end the session at 12,880.820 and S&P/NZX 20 Index increased by 0.76% to close at 7,627.150. Also, S&P/NZX 10 Index encountered a rise of 1.14% to close at 12,809.650. Notably, healthcare sector witnessed strong buying and S&P/NZX All Health Care increased by 2.22%.   

Macro Update: Food prices witnessed a rise of 3.7% during the 12 months ended April 2025, after the 3.5% rise in the 12 months ended March 2025. Notably, increased prices for the grocery food group as well as the non-alcoholic beverages group contributed most to the annual rise in food prices, up by 5.2% and 6.8%, respectively. Notably, price increases were widespread, and all 5 food groups witnessed an increase.   

Top Market Movers: Among top gainers, Comvita Limited (NZX: CVT) witnessed a rise of 10.34% to $0.64 per share. On the other hand, Blis Technologies Limited (NZX: BLT) declined by 6.67%.    

Commodity Update: The dollar wavered Thursday amid trade uncertainty, following initial optimism over a U.S.-China tariff truce. South Korea’s won stabilised after recent volatility. Gold fell 0.90% to $3,160.05, silver dropped 1.08% to $32.09, and copper edged down 0.42% to $9,554.75. Brent crude slid 1.60% to $65.04 after Iran showed openness to a U.S. nuclear deal and U.S. crude inventories unexpectedly rose, stoking oversupply concerns  

Source: Trading View, Analysis: Kalkine Group   

The S&P/NZX 50 Index posted a solid gain in the latest session, rising 101.50 points and forming a bullish candlestick on the daily chart. The index continues to trade above its 21-period Simple Moving Average (SMA), which acts as dynamic support and reinforces the prevailing short-term uptrend. A key support zone around 12,550 remains in focus. Maintaining levels above this area is crucial for preserving recent gains and sustaining upward momentum. Continued strength at this support level would enhance the near-term bullish outlook. From a broader perspective, the weekly chart also shows the index holding above its 21-period SMA, confirming a longer-term uptrend. This alignment across both daily and weekly timeframes underscores a resilient technical structure, suggesting the potential for continued upside despite any short-term fluctuations.  

Our Stance: It could be said that the buying in the healthcare sector somewhat supported the broader NZ market on 15th May 2025. Moving forward, the combination of Donald Trump’s trade agenda and the uncertainty around the interest rates are likely to impact the broader global and NZ markets. Also, the market players are required to closely track the developments happening around trade deals with the US. On 19th May 2025, Stats NZ is expected to release date about business price indexes (March 2025 quarter).