NZ Market Closes Higher – A Quick Look

Image Source : Krish Capital Pty Ltd

Index Update: On 21st March 2025, 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 0.49% to end the session at 12,113.540 and S&P/NZX 20 Index increased by 0.27% to 7,158.970. Also, S&P/NZX 10 Index rose by 0.35% to 11,815.310. Also, S&P/NZX All Materials encountered an increase of 4.24% to close the session at 1,149.170. However, S&P/NZX All Consumer Staples declined by 1.51%.  

Macro Update: Stats NZ released data about overseas merchandise trade (February 2025). In February 2025, goods exports witnessed a rise of $954 Mn (or 16%) to $6.7 Bn, and goods imports increased $125 Mn (or 2.1%) to $6.2 Bn as compared to February 2024. Therefore, the monthly trade balance was a surplus of $510 Mn. Notably, milk powder, butter, and cheese led the rise in exports, increasing $486 Mn (or 27%) to $2.3 Bn.  

Top Market Movers: Among top gainers, Chatham Rock Phosphate Limited (NZX: CRP) witnessed a rise of 8.79% to end the session at $0.099 per share. On the other hand, PaySauce Limited (NZX: PYS) fell by 5.76%.  

Commodity Update: The U.S. dollar strengthened on Friday, marking its best performance in three weeks, supported by the Federal Reserve's stance on not rushing to cut interest rates. Meanwhile, the Australian and New Zealand dollars remained weak after significant losses on Thursday, impacted by concerns over the economic toll from U.S. President Donald Trump’s aggressive global trade tariffs. In commodities, gold fell 0.17% to $3,038.70, silver dropped 0.64% to $33.77, and copper declined 0.17% to $9,914.20. However, Brent crude rose 0.60% to $72.46, driven by new U.S. sanctions on Iran and OPEC+ production cuts signalling tighter future supplies. 

Source: Trading View, Analysis: Kalkine Group  

After breaching the upward trendline that had been in

place since November 2024 and displaying signs of weakness, the S&P/NZX 50 index continues to break through a key support level formed by the neckline of a Head & Shoulders pattern, suggesting further downside potential. This weakness could drive the index toward strong support around 11,500 points before any signs of recovery emerge. Furthermore, the 14-day Relative Strength Index (RSI) remains below its midpoint, indicating a short-term negative market sentiment.  

Our Stance: It seems that the broader NZ market was supported by the buying in the materials sector. While the US Fed’s recent meeting was somewhat favourable for the broader US markets, there are still some uncertainties that can impact the investors’ sentiments. These include the impact of Trump’s tariffs as well as policies related to the immigration. Since the impact of these measures are unknown, the investors are required to be careful while investing in the risky assets.