Image Souce: Krish Capital Pty Ltd

Index Update: On 2nd December 2024, the broader NZ market ended higher amidst buying in the energy sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.37% to end the session at 13,114.680 and S&P/NZX 20 Index rose by 0.50% to 7,900.140. Also, S&P/NZX 10 Index increased 0.86%. S&P/NZX All Energy encountered a rise of 1.69% to end at 1,568.320. On the other hand, S&P/NZX All Materials fell by 3.63%.  

Macro Update: There were 2,850 new homes consented in NZ in the month of October 2024, reflecting a fall of 6.9% as compared with October 2023. In October 2024, 1,487 multi-unit homes were consented, down 18% as compared with October 2023. Notably, there were 1,363 stand-alone houses consented, up by 8.6% as compared with October 2023. Since July 2024, the number of stand-alone houses consented each month has been higher than the same month of the previous year.   

Top Market Movers: Among top gainers, Marlborough Wine Estates Group Limited (NZX: MWE) rose by 11.76% to NZ$0.057 per share. On the same day, PaySauce Limited (NZX: PYS) declined by 8.89% to NZ$0.205 per share. 

Commodity Update: Currencies of BRICS nations weakened on Monday, while the U.S. dollar strengthened after President-elect Donald Trump threatened 100% tariffs on the bloc if it moves away from the greenback. This follows Trump's call for BRICS members to refrain from creating or supporting an alternative currency. The dollar's rise is also linked to market expectations of U.S. interest rate cuts. In commodities, gold fell 1.19% to $2,649.80, silver dropped 1.46% to $30.65, and copper declined 0.44% to $8,981.50. Meanwhile, Brent crude edged up 0.10% to $71.92 per barrel, supported by strong Chinese factory activity and ongoing Middle East tensions despite a ceasefire agreement. 

Source: Trading View, Analysis: Kalkine Group  

In July 2024, the S&P/NZX 50 index surpassed both the neckline of a Head and Shoulders pattern on the daily chart and a key resistance level marked by its 2023 high. This breakout indicates that the uptrend, which started in November 2023, is likely to persist and could push the index toward its historical peak from 2021. Moreover, the index recently surpassed its previous peak, reinforcing the ongoing uptrend. Furthermore, the 14-day Relative Strength Index (RSI) is trading above its midpoint, indicating a positive short-term market sentiment. 

 
Our Stance: It could be said that the NZ equities were supported by buying in the energy sector. Moving forward, November’s jobs report is one of the most important economic releases which is expected to decide the broader movement of the US equities. Also, this report might also provide some idea about the expected rate cuts from the US Federal Reserve. The global economic releases could influence the NZ equities as well.   

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