Materials Sector Witnesses Buying Momentum

Index Update: On 7th January, the broader NZ market ended in green amidst buying in the materials sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.38% to end at 13,715.020 and S&P/NZX 20 Index rose by 0.26% to close at 7,798.320. Also, S&P/NZX 10 Index increased by 0.44% to 13,092.580. Notably, S&P/NZX All Materials rose by 2.80% and S&P/NZX All Energy witnessed an increase of 2.43%.     

Macro Update: The Treasury released half year economic and fiscal update 2025. It was mentioned that core crown tax revenue is expected to fall as a share of GDP, from 27.9% in 2024/25 to 27.3% in 2025/26. Notably, around half of the decline is expected from the economic cycle as well as roughly one half because of policy changes, mainly the impact of Investment Boost.   

Market Movers: Among top gainers, Manuka Resources Limited (NZX: MKR) witnessed a rise of 34.17% to end at $0.161 per share. Move Logistics Group Ltd (NZX: MOV) declined by 7.35%.    

Commodity Update: The U.S. dollar traded in a narrow range on Wednesday as investors awaited a batch of key U.S. economic data likely to shape the Federal Reserve’s rate outlook, overshadowing geopolitical concerns. Commodities softened, with gold slipping 0.24% to USD 4,486.10, silver down 0.56% to USD 80.54, and copper easing 0.36%. Brent crude declined 1% to USD 60.11 after comments on potential Venezuelan oil supply boosted supply expectations.  

Source: Trading View, Analysis: Kalkine Group  

The S&P/NZX 50 Index prolonged its short-term rebound for a fifth straight session, rising 51.44 points, or 0.38%, to close at 13,715.01. The benchmark is now nearing its all-time high of 13,747.71, set in November 2025. A decisive break above this level could attract additional upside momentum, with the next immediate resistance located around the 14,000 mark. Additionally, momentum indicators remain supportive, with the 14-period RSI turning higher from its neutral midpoint, signaling improving market sentiment and lending further support to the prevailing constructive outlook. Alternatively, the index may continue to trade sideways, constrained between its record high on the upside and a key support zone linked to the 2024 peak. Under this scenario, initial support is seen at the prior trough of 13,229.25.  

Our Stance: It seems that the US investors have been overlooking geopolitical worries, with NASDAQ Composite Index rising 0.65% to end at 23,547.17 on 6th January. Moving forward, the broader global markets are expected to be impacted by the economic releases, with data about initial jobless claims expected on 8th January. The global environment is likely to influence the NZ economy and equities. On 14th January, data about business count indicators (November 2025) is expected to be released.