NZ Market Closes Higher: A Quick Look

Image Source : Krish Capital Pty Ltd

Index Update: On 26th June 2025, the NZ market closed higher amidst broad-based buying momentum. On the same day, S&P/NZX 50 Index witnessed a rise of 0.15% to end the trading session at 12,480.050 and S&P/NZX 20 Index rose by 0.05% to close at 7,310.090. Also, S&P/NZX 10 Index encountered a rise of 0.17% to 12,228.070. The financials sector witnessed buying momentum and S&P/NZX All Financials increased by 1.31% to 1,432.680.   

Macro Update: As per FEU dated 19 June 2025, the conflict in Middle East has been adding risks to the broader global outlook. Also, the global data releases exhibit the front-loading boost to activity which took place prior to April’s US tariff hike is being mitigated by the weakness, although the downshift remains uneven. In the US, imports witnessed a sharp fall in April, reversing a significant increase in March, while May data demonstrated falls in industrial production (-0.2%) as well as retail sales (-0.9%).   

Top Market Movers: Among top gainers, Burger Fuel Group Limited (NZX: BFG) rose by 8.47% to end at $0.32 per share. On the other hand, Blis Technologies Limited (NZX: BLT) declined by 6.25% to $0.015 per share.  

Commodity Update: The U.S. dollar slipped to a 3.5-year low against the euro on Thursday amid concerns over the Federal Reserve's independence. Reports suggested President Trump should consider replacing Fed Chair Jerome Powell, which shook investor confidence. Gold rose 0.36% to $3,355.20, silver gained 0.55% to $36.31, and copper added 0.54% to $9,782.00. Brent crude climbed 0.20% to $67.80, supported by strong U.S. demand and Middle East ceasefire uncertainties.  

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 financial sector somewhat supported the broader NZ market on 26 June. Moving forward, the macro-economic news can influence the broader global and NZ markets. Since the volatility in the commodity markets can impact the investors’ sentiments, they are required to be cautious about making investments in risky assets. The reports suggesting that President Trump is considering to replace Fed Chair Jerome Powell can also impact the sentiments.