NZ Market Closes Higher

Image Source : Krish Capital Pty Ltd

Index Update: On 1st April 2025, the broader NZ market closed in green amidst buying in the healthcare sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.35% to end the session at 12,312.600 and S&P/NZX 20 Index rose by 0.32%. Also, S&P/NZX 10 Index encountered an increase of 0.39% to 12,090.300. Notably, S&P/NZX All Health Care witnessed a rise of 1.85% to 2,991.730. However, S&P/NZX All Information Technology fell by 2.41%.  

Macro Update: RBNZ recently stated that a period of restrictive interest rates resulted in lower demand in the NZ economy as well as contributed to the reduced inflation. Also, the subdued global economic activity, declining net immigration, and lower government consumption have reduced domestic demand.  The Committee has mentioned that the GDP growth for many of the main trading partners is below potential.  

Top Market Movers: Among top gainers, Move Logistics Group Ltd (NZX: MOV) witnessed a rise of 10.00% to end at $0.22 per share. On the other hand, Tower Limited (NZX: TWR) declined by 6.73% to $1.3850 per share. 

Commodity Update: The dollar remained steady on Tuesday after a tough quarter as investors awaited U.S. President Donald Trump’s announcement of reciprocal tariffs, which was expected Wednesday with limited details. Trump hinted that nearly all countries would face new duties. In commodities, gold rose 0.72% to $3,172.90, silver gained 0.84% to $34.90, and copper surged 0.51% to $9,758.50. Brent oil held at $74.75 per barrel amid heightened geopolitical tensions after Trump’s threat to bomb Iran and potential sanctions on Russia’s oil industry if Russia-Ukraine peace talks falter. 

Source: Trading View, Analysis: Kalkine Group   

After penetrating the upward trendline that had been in place since November 2024 and exhibiting signs of weakness, the S&P/NZX 50 index continues to break below a key support level marked by the neckline of a Head & Shoulders pattern, indicating the possibility of further declines. This downward pressure could drive the index toward strong support around 11,500 points before any signs of recovery emerge. Although the index is currently experiencing a slight rebound, it remains below the broken trendline, which could signal a continuation of the short-term downtrend. Moreover, the 14-day Relative Strength Index (RSI) remains below its midpoint, reinforcing a bearish short-term market sentiment.  

Our Stance: It could be said that the buying in the healthcare sector supported the broader NZ market on 1st April 2025. As a result of tariff uncertainties, the investors continue to witness recessionary fears. As of now, the uncertainty around trade policies continue to impact the broader global and US markets. Moving forward, the capital markets are expected to be impacted by expectations related to the rate cuts and other macro-economic worries. On 3rd April, data about the initial jobless claims is expected to be released.