NZ Market Closes Higher Amidst Buying in Utilities Sector

Index Update: On 20th October 2025, the broader NZ market ended the trading session in green amidst buying in the utilities sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.42% to end at 13,344.960 and S&P/NZX 20 Index rose by 0.55% to 7,649.980. Notably, S&P/NZX 10 Index encountered an increase of 0.41%. Notably, some buying was witnessed in the utilities sector and S&P/NZX All Utilities rose by 0.93%.    

Macro Update: As per Stats NZ, Aotearoa NZ’s CPI rose 3.0% in the 12 months ended September 2025 quarter. The 3.0% rise was witnessed after the 2.7% rise in the 12 months ended June 2025 quarter. RBNZ’s target band for the annual inflation rate is 1% - 3%. The annual electricity increases remain at their highest since the late 1980s, when there were numerous major reforms in the electricity market.   

Market Movers: Among top gainers, Being AI Limited (NZX: BAI) witnessed a rise of 20.00% to end at $0.18 per share. On the other hand, Green Cross Health Limited (NZX: GXH) declined by 5.61%.   

Commodity Update: The U.S. dollar steadied on Monday as easing trade tensions between Beijing and Washington and reduced concerns over U.S. regional banks lifted risk appetite. Gold gained 1.27% to USD 4,268.70 per ounce, silver rose 1.30% to USD 50.28, and copper advanced 1.09% to USD 10,709.95. However, Brent crude slipped 0.40% to USD 61.05 per barrel amid persistent worries over a global supply glut and softer energy demand.  

Source: Trading View, Analysis: Kalkine Group  

Following a brief corrective phase within a well-established broader uptrend marked by a consistent pattern of higher highs and higher lows, the S&P/NZX 50 Index has recently staged a breakout above its 2024 peak at 13,270. This upward breach confirms the continuation of the prevailing bullish structure and signals the potential for renewed upside momentum. Technically, the breakout opens the way for a possible retest of the all-time high at 13,636. Importantly, the former resistance level at 13,270 has now transitioned into a key support zone, which could underpin the next leg of the advance. While the index is presently experiencing a modest pullback, its ability to hold above this newly established support suggests that the broader uptrend remains intact and the overall technical outlook continues positive.  

Our Stance: It could be said that buying in the utilities sector somewhat supported the broader NZ market on 20th October. Moving forward, the broader US markets are expected to be influenced by the earnings reports from the big companies and the inflation data. However, there remains significant uncertainty in the global economic environment primarily due to the concerns about tariffs. Therefore, the investors are required to be cautious.