Index Update: On 16th January, the NZ market closed higher amidst broad-based buying, mainly in the IT sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.43% to end at 13,718.100 and S&P/NZX 20 Index rose by 0.46% to 7,795.810. Also, S&P/NZX 10 Index encountered a rise of 0.52%. Notably, some buying was witnessed in the IT sector, with S&P/NZX All Information Technology increasing by 1.53%.      

Macro Update: As per Stats NZ, food prices rose 4.0% during the 12 months ended December 2025, after the 4.4% rise in the 12 months ended November 2025. Notably, increased prices for the grocery food group (which rose by 4.6%), contributed the most to the annual rise in food prices. This was followed by meat, poultry, and fish, which were up by 7.4% annually.   

Market Movers: Among top gainers, Rua Bioscience Limited (NZX: RUA) witnessed a rise of 9.38%. On the other hand, Blis Technologies Limited (NZX: BLT) declined by 5.56%.   

Commodity Update: The U.S. dollar was set for a third straight weekly gain on Friday, supported by firm U.S. economic data that reduced expectations of near-term Federal Reserve rate cuts. Gold declined 0.59% to USD 4,596.70, silver fell 2.74% to USD 89.81, and copper slipped 1.25% to USD 12,974.00. Brent crude edged down 0.05% to USD 63.73, with both Brent and WTI largely steady as geopolitical risk premiums eased. 

Source: Trading View, Analysis: Kalkine Group  

In the latest session, the S&P/NZX 50 Index retraced most of the prior decline, rising 58.29 points, or 0.43%. Notably, the benchmark had already confirmed a decisive breakout above its former all-time high of 13,747.71, established in November 2025, two sessions earlier. This technical breakout strengthens the case for a resumption of upward momentum, with the next key resistance and near-term objective located near the psychologically significant 14,000 level. From a momentum standpoint, conditions remain favourable, as the 14-day RSI has turned higher from neutral territory, indicating strengthening buying interest and supporting a constructive short-term technical outlook.  

Our Stance: As of now, it could be said that AI momentum has been supporting the broader US markets. Also, the markets are being influenced by the earnings releases. Moving forward, a range of political and geopolitical developments might impact the investors’ sentiments. With respect to NZ, the half-year economic and fiscal update 2025 stated that a widening fiscal deficit is expected in 2025/26, driven in part by the weakness in broader economy.  

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