Image Source : Krish Capital Pty Ltd

Index Update: On 21st July 2025, the broader NZ market ended the trading session higher amidst buying in the materials sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.63% to end at 12,961.510 and S&P/NZX 20 Index increased 0.62% to 7,605.630. Also, S&P/NZX 10 Index rose by 0.77% to 12,681.570.   

Macro Update: As per RBNZ, Aotearoa NZ’s CPI rose 2.7% in the 12 months to the June 2025 quarter, as per Stats NZ. Even though the annual inflation rate rose from the March 2025 quarter, it remains in the Reserve Bank of New Zealand’s target band of 1% - 3%. The largest upwards contributor to the annual inflation rate was local authority rates and payments, which were up by 12.2. Rates made the contribution of 13% of the 2.7% annual rise.  

Top Market Movers: Among top gainers, Chatham Rock Phosphate Limited (NZX: CRP) witnessed a rise of 12.50% to end at $0.081 per share. On the other hand, TruScreen Group Limited (NZX: TRU) declined by 10.53% to $0.0170 per share.  

Commodity Update: The Japanese yen strengthened on Monday, bolstered by rising global political uncertainty as investors flocked to safe-haven assets. With risk sentiment weakening, the yen's stability was reaffirmed. Precious metals saw gains: gold rose 0.53% to $3376.40, silver increased 0.25% to $38.56, and copper advanced 0.77% to $9,864.90. Brent crude edged up 0.01% to $69.34, as traders assessed the impact of European sanctions on Russian oil and potential tariffs.  

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Source: Trading View, Analysis: Kalkine Group   

After experiencing a period of consolidation that followed a sustained upward rally beginning in October 2023, in the last three trading sessions, the S&P/NZX 50 index broke decisively above a key resistance level at 12,881 points - an area previously marked by its former peak. This breakout suggests renewed bullish momentum in the market and signals the potential for further upside movement. If the current trend continues, the index may be poised to retest its most recent high, which lies around 13,250 points. Supporting this bullish outlook, the 14-day Relative Strength Index (RSI) is currently trending upward from the midpoint, indicating strengthening market momentum and improving investor sentiment.  

Our Stance: It could be said that the buying in the materials sector somewhat supported the broader NZ market. Moving forward, the investors are required to track the earnings from the big tech companies. As of now, the broader equity markets are being affected by the developments related to the trade policies. While these developments can impact the markets, the equities are expected to be influenced by the macro-economic developments.  

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