NZ Market Closes Higher: A Quick Look

Image Source : Krish Capital Pty Ltd

Index Update: On 2nd July 2025, the broader NZ market ended in green amidst buying in the consumer staples sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.39% to end the session at 12,784.290 and S&P/NZX 20 Index increased by 0.41% to 7,495.130. Also, S&P/NZX 10 Index increased by 0.50% to 12,556.550. Notably, the consumer staples sector witnessed strong buying and S&P/NZX All Consumer Staples rose by 1.88%.   

Macro Update: As per Stats NZ, in May 2025, the seasonally adjusted number of new dwellings consented witnessed a rise of 10%, after declining 15% in April 2025. During the year to May 2025, the actual number of new dwellings consented stood at 33,530, implying a fall of 3.8% from the year ended May 2024. The annual value of non-residential building work consented amounted to $9.0 Bn, reflecting a fall of 2.3% from the year to May 2024.   

Top Market Movers: Among top gainers, Blis Technologies Limited (NZX: BLT) rose by 46.67% to $0.022 per share. On the other hand, Chatham Rock Phosphate Limited (NZX: CRP) declined by 8.11% to $0.068 per share.  

Commodity Update: On Wednesday, the U.S. dollar hovered near its lowest level since February 2022, weighed down by dovish signals from Federal Reserve Chair Jerome Powell and concerns about former President Donald Trump’s spending bill. Gold fell 0.15% to $3,344.70, silver edged down 0.06% to $36.02, copper rose 0.30% to $9,963.35, and Brent crude increased 0.08% to $67.18 ahead of a key producers' meeting on August 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 consumer staples sector somewhat supported the broader NZ market on 2 July. While the tariff talks can continue to weigh over the investors’ sentiments, it is of utmost importance to closely track the other macro-economic developments. Notably, the market experts have highlighted that the US Fed anticipates to witness the impact of tariffs on the data related to inflation moving forward.