NZ Market Closes Flat

Index Update: On 2nd February, the broader NZ market ended on a flat note, amidst mixed sentiments in the overall NZ equities. On the same day, S&P/NZX 50 Index witnessed a marginal fall of 0.08% to end at 13,412.440 and S&P/NZX 20 Index rose by 0.10% to close at 7,641.130. Notably, S&P/NZX 10 Index encountered an increase of 0.08%. There was a significant decline in IT sector, with S&P/NZX All Information Technology falling 2.80%.  

Macro Update: As per Stats NZ, the cost of living for an average NZ household rose 2.2% during the 12 months ended December 2025 quarter. This comes after the 2.4% rise in the 12 months ended September 2025 quarter and was measured by the household living-costs price indexes (HLPIs). Notably, inflation, which is measured by CPI, stood at 3.1% during the 12 months ended December 2025 quarter.   

Market Movers: Among top gainers, Blis Technologies Limited (NZX: BLT) witnessed a rise of 6.25% to close at $0.017 per share. On the other hand, Manuka Resources Limited (NZX: MKR) declined by 8.70% to $0.21 per share. 

Commodity Update: The dollar firmed on Monday after precious metals faced sharp losses last week, driven by profit-taking and lingering uncertainty over U.S. monetary policy. Gold slipped 0.19% to USD 4,736.00, while silver rebounded 2.39% to USD 80.84. Copper declined 2.72% to USD 12,804.80. Brent crude fell 3.30% to USD 67.07 as easing U.S –Iran tensions and unchanged OPEC+ output prompted profit booking. 

Source: Trading View, Analysis: Kalkine Group 

In the most recent trading session, the S&P/NZX 50 Index experienced a sharp decline early on but managed to recoup most of the losses, finishing near the prior close, slipping only 10.76 points, or 0.08%, to settle at 13,412.43. This price action indicates that the market remains in an ongoing consolidation phase, constrained by resistance near the record high, while downside risks continue to be cushioned by solid support around the December 2024 peak, reflecting a well-balanced short-term setup. Notably, the index continues to hold above its previous swing low, suggesting that the broader bullish trend remains intact despite recent volatility. From a technical standpoint, momentum appears to be stabilizing, with buyers actively defending key support areas. Looking ahead, immediate resistance stands at the recent high of 13,757.71, and a decisive breakout above this level could strengthen bullish sentiment and pave the way toward the psychological 14,000 mark. On the downside, initial support is located near the 13,250 zone, where a sustained hold would help maintain the prevailing constructive structure and reduce the risk of a deeper corrective phase.  

Our Stance: It seems that the broader US markets will continue to be impacted by the uncertainty related to the US Fed’s policy. Also, hawkish signals from BoJ might also impact the investors’ sentiments. Coming to the NZ equities, the investors’ risk appetite was weighed down by the volatility in the commodities as well as sell-off in the US equities. Moving forward, the market sentiments might be influenced by the data on initial jobless claims (US) and the US employment report, which are due later this week.