Image Source : Krish Capital Pty Ltd

Index Update: On 14th March 2025, the broader NZ market ended in green amidst significant buying in the consumer staples sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.47% to end at 12,266.250 and S&P/NZX 20 Index increased by 0.56%. Also, S&P/NZX 10 Index rose by 0.09% to 11,960.920. S&P/NZX All Consumer Staples encountered an increase of 5.45% to close at 3,682.840. 

Macro Update: The food prices rose by 2.4% in the 12 months to February 2025, after a 2.3% increase in the 12 months to January 2025, as per Stats NZ. The higher prices for the grocery food group as well as the restaurant meals and ready-to-eat food group contributed most to the annual rise in food prices, up 4.3% and 2.5%, respectively.  

Top Market Movers: Among top gainers, The a2 Milk Company Limited (NZX: ATM) witnessed a rise of 7.02% to end at $9.45 per share. On the other hand, Bremworth Limited (NZX: BRW) declined by 4.69% to $0.61 per share.  

Commodity Update: The U.S. dollar strengthened on Friday as the euro pulled back from a five-month high, amid rising global trade tensions and fears of a potential economic downturn. In commodities, gold increased 0.21% to $2,997.60, silver gained 0.71% to $34.55, and copper rose 0.69% to $9,819.20. Brent crude climbed 0.40% to $70.60, bolstered by tighter U.S. sanctions on Iranian oil and shipping. However, oil was set for weekly losses due to concerns over oversupply, as Russia-Ukraine ceasefire talks and trade tensions added pressure on the market. 

Source: Trading View, Analysis: Kalkine Group   

In July 2024, the S&P/NZX 50 index broke above both the neckline of a Head and Shoulders pattern on the daily chart and a crucial resistance level set by its 2023 high. This breakout suggests that the uptrend, which began in November 2023, is likely to continue and may drive the index toward its 2021 historical peak. Despite the ongoing correction, the index is trading above the key support level defined by the pattern’s neckline, reinforcing expectations of a sustained uptrend. Additionally, the 14-day Relative Strength Index (RSI) is forming a bottom divergence near its oversold territory, signaling a potential rebound in the near future.  

Our Stance: It seems that the significant buying in the consumer staples sector supported the buying momentum in the broader NZ market. Stats NZ stated that food prices declined 0.5% in February 2025, following a 1.9% increase in January 2025. The macroeconomic releases in NZ are expected to influence the NZ markets moving forward. Also, the trade developments on the global front are likely to affect the NZ equity markets. 

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