NZ Market Closes Higher

Index Update: On 16th October 2025, the broader NZ market ended the trading session in green amidst buying in the financials sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.61% to end at 13,389.100 and S&P/NZX 20 Index rose by 0.58% to 7,659.430. Also, S&P/NZX 10 Index increased by 0.87% to 12,776.360. Notably, strong buying was witnessed in the financials sector and S&P/NZX All Financials rose by 3.91%.  

Macro Update: As per Stats NZ, the food prices rose 4.1% in the 12 months to September 2025, the smallest annual rise since April 2025. The increased prices for the grocery food group, up by 3.9%, contributed most to the annual rise in the food prices. This was followed by meat, poultry, and fish, up by 6.4% annually, and restaurant meals and ready-to-eat food, an increase of 2.5% annually.   

Market Movers: Among top gainers, Uvre Limited (NZX: UVA) witnessed a rise of 16.07% to end at $0.325 per share. On the other hand, Enprise Group Limited (NZX: ENS) declined by 15.15%.  

Commodity Update: The U.S. dollar weakened on Thursday amid concerns over the Sino-U.S. trade tensions and growing expectations of a Federal Reserve rate cut this year. Precious metals gained, with gold up 1.24% to $4,243.70 and silver advancing 2.80% to $52.80. Copper edged higher by 0.16% to $10,637.15. Brent crude rose 1.10% to $62.57, supported by expectations of tighter supplies after President Trump said India would halt oil imports from Russia. 

Source: Trading View, Analysis: Kalkine Group 

Following a brief corrective phase within a well-established broader uptrend marked by a consistent pattern of higher highs and higher lows, the S&P/NZX 50 Index has recently staged a breakout above its 2024 peak at 13,270. This upward breach confirms the continuation of the prevailing bullish structure and signals the potential for renewed upside momentum. Technically, the breakout opens the way for a possible retest of the all-time high at 13,636. Importantly, the former resistance level at 13,270 has now transitioned into a key support zone, which could underpin the next leg of the advance. While the index is presently experiencing a modest pullback, its ability to hold above this newly established support suggests that the broader uptrend remains intact and the overall technical outlook continues positive. 

Our Stance: It could be said that buying in the financials sector somewhat supported the NZ market on 16th October. As of now, it seems that the broader US markets are being supported by the strong momentum in the AI stocks. RBNZ recently stated that there are upside and downside risks to the inflation outlook in NZ. Notably, cautious behaviour by households as well as businesses can slow the economic recovery.