Industrials Sector Witnesses Selling Pressure

Index Update: On 13th January, the NZ market ended the trading session in red amidst broad-based selling momentum. On the same day, S&P/NZX 50 Index witnessed a decline of 0.20% to end at 13,656.050 and S&P/NZX 20 Index fell by 0.27% to close at 7,754.080. Also, S&P/NZX 10 Index encountered a fall of 0.21%. Notably, S&P/NZX All Industrials witnessed a decline of 0.87% to end at 2,468.660.     

Macro Update: As per Stats NZ, NZ’s GDP witnessed an increase of 1.1% in the quarter ended September 2025 after the 1.0% decline in the June 2025 quarter. Notably, business services, which rose by 1.6%, was a key contributor to the quarterly GDP growth. The growth was supported by professional, scientific, as well as technical services, like computer system design and related services.   

Market Movers: Among top gainers, Manuka Resources Limited (NZX: MKR) witnessed a rise of 7.53% to close at $0.20 per share. On the other hand, TruScreen Group Limited (NZX: TRU) declined by 5.56%.    

Commodity Update: The U.S. dollar stayed under pressure on Tuesday after the Trump administration opened a criminal investigation into Federal Reserve Chair Jerome Powell, raising concerns over central bank independence and confidence in U.S. assets. Gold slipped 0.19% to USD 4,608.30, while silver rose 0.85% to USD 85.78 and copper advanced 0.94% to USD 13,219.20. Brent crude oil remained higher, trading up at USD 63.87, after surging to seven-week highs, supported by concerns that Iran’s oil exports could decline amid heightened geopolitical tensions. 

Source: Trading View, Analysis: Kalkine Group  

The S&P/NZX 50 Index prolonged its modest retreat for a third straight session after testing its record high, slipping 27.22 points, or 0.20%, to close at 13,656.06. Nevertheless, the benchmark continues to trade just below its all-time high of 13,747.71 recorded in November 2025. A clear break above this level could revive bullish momentum, with the next near-term resistance located around the 14,000 mark. From a momentum perspective, technical indicators remain favourable, as the 14-day RSI has turned higher from neutral territory, signalling an improvement in market sentiment and supporting a constructive short-term outlook. Alternatively, the index could continue to move sideways, constrained by its record high and supported by a key floor linked to the 2024 peak. Under this scenario, initial support is seen at the prior low of 13,229.25.  

Our Stance: As of now, it seems that the broader global markets are being impacted by tensions between the US Fed as well as White House. While there was some weakness in the dollar, strong favourable momentum was witnessed in the gold prices. Coming to NZ, the markets are expected to be influenced by macro-economic concerns as well as geopolitical worries. The FEU dated 19th December highlighted that economic growth remained strong throughout sectors amidst ease in global tensions as well as decline in rates.