NZ Market Closes Higher- A Quick Look

Image Source : Krish Capital Pty Ltd

Index Update: On 11th June 2025, the broader NZ market closed the trading session higher amidst buying momentum in the market. On the same day, S&P/NZX 50 Index witnessed a rise of 0.33% to end at 12,605.930 and S&P/NZX 10 Index rose by 0.45% to close at 12,408.150. Also, S&P/NZX 20 Index increased by 0.33% to 7,429.320. Notably, significant buying was witnessed in the communications services sector and S&P/NZX All Communications Services rose by 1.88%.   

Macro Update: Stats NZ released data about international travel (April 2025). The overseas visitor arrivals stood at 267,300 in April 2025, reflecting an increase of 42,200 from April 2024. The biggest changes were in arrivals from Australia (up by 33,800), United Kingdom (up 4,000), United States (up by 3,300), etc. The total number of overseas visitor arrivals in April 2025 was 87% of the 307,400 in April 2019 (before the pandemic).  

Top Market Movers: Among top gainers, Fletcher Building Limited (NZX: FBU) witnessed a rise of 9.97% to $3.31 per share. On the other hand, Being AI Limited (NZX: BAI) declined by 7.89%.   

Commodity Update: The dollar held steady on Wednesday as investors welcomed a potential U.S.-China trade agreement framework, raising hopes of easing trade tensions. Gold rose 0.49% to $3,359.59, silver edged up 0.23% to $36.72, and copper gained 0.05% to $9,759.65. Brent crude dipped 0.36% to $66.63 amid cautious sentiment, with traders awaiting President Trump’s review and concerns over weak Chinese demand and rising OPEC+ output.  

Source: Trading View, Analysis: Kalkine Group   

Following a sustained upward rally that began in October 2023, the S&P/NZX 50 index appears to be transitioning into a consolidation phase. This is evidenced by the formation of a lower high and a higher low on the chart - typically a technical signal that the market may be entering a trading range. Unless there is a clear breakout above the previous resistance level at 12,881 points or a breakdown below the earlier support level at 12,254 points, this sideways movement is expected to persist in the near term. Additionally, the 14-day Relative Strength Index (RSI) is currently hovering around its midpoint, which reinforces the previous outlook. As a result, investors may need to wait for a decisive move in either direction before gaining greater clarity on the market’s next trend.  

Our Stance: It could be said that buying in the communications services sector somewhat supported the broader NZ market on 11 June. RBNZ stated that the NZ economy has been recovering after a period of contraction. Notably, the increased commodity prices and lower interest rates continue to support the overall economic activity. However, as per RBNZ, both tariffs and policy uncertainty overseas can moderate NZ’s economic recovery.