Buying in IT Sector Supports NZ Market

Image Source : Krish Capital Pty Ltd

Index Update: On 29th August 2025, the NZ market ended in green amidst buying in the IT sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.21% to end at 12,930.730 and S&P/NZX 20 Index increased by 0.19% to close at 7,549.160. Also, S&P/NZX 10 Index declined by 0.01% to 12,517.130. Notably, strong buying was witnessed in the IT sector and S&P/NZX All Information Technology increased by 1.64%. However, S&P/NZX All Financials declined by 1.47%.   

Macro Update: As per the FEU dated 14th August 2025, the global activity indicators are demonstrating that the global growth remained steady as the H2 of the year began. Notably, July’s global composite PMI increased to 52.4, as services sentiment witnessed an improvement, likely showcasing the decline in rates as well as inflation. Also, NZ’s primary exporters managed to capitalize on the  global commodity supply shortage.   

Top Market Movers: Among top gainers, Delegat Group Limited (NZX: DGL) witnessed a rise of 10.66% to end at $4.05 per share. On the other hand, TruScreen Group Limited (NZX: TRU) declined by 5.88% to $0.016 per share.  

Commodity Update: The dollar weakened Friday, on track for a 2% August decline amid rising bets of a Federal Reserve rate cut and concerns over its independence, with President Trump attempting to oust Fed Governor Lisa Cook, who has filed a lawsuit. Gold slipped 0.06% to $3,472.20, silver fell 0.23% to $39.10, while copper gained 0.22% to $9,847.75. Brent crude dropped 0.71% to $67.50, with oil prices set for a weekly rise despite U.S. demand slowdown and Russian supply uncertainty.   

Source: Trading View, Analysis: Kalkine Group  

After beginning a short-term rally in April 2025, the S&P/NZX 50 index has recently revisited its 2024 peak at 13,270. Despite a brief pullback, the index continues to register higher highs and higher lows, signaling that the uptrend is still intact. A decisive break above this resistance would strengthen bullish momentum and potentially pave the way for a test of the all-time high at 13,636. On the downside, immediate support lies at 12,750, with a breach of this level serving as an early warning signal. Meanwhile, the 14-day Relative Strength Index (RSI) is hovering around the neutral zone, reflecting balanced market sentiment.  

Our Stance: It could be said that the buying in the technology sector somewhat supported the broader NZ market on 29th August. As per the recent FEU, consumer confidence as well as household spending is subdued amid the weakness in the broader job market despite reduced interest rates. Also, the uncertainty related to the outlook is high, with geopolitical risks also contributing. Amidst these factors, the market participants need to be cautious about the equity investments.