Image Souce: Krish Capital Pty Ltd

Index Update: On 27th November 2024, the broader NZ market closed the session in green amidst buying in the consumer staples sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.76% to end the session at 13,212.920 and S&P/NZX 20 Index rose by 0.87% to 7,979.890. Also, S&P/NZX 10 Index  increased 0.97%. S&P/NZX All Consumer Staples witnessed an increase of 2.17%.  

Macro Update: Stats NZ released data about overseas merchandise trade (October 2024). In October 2024, goods exports increased by $400 Mn (or 7.5%) to $5.8 billion and goods imports increased by $211 Mn (or 3.0%) to $7.3 Bn. The monthly trade balance was a deficit of $1.5 Bn. Notably, fruit rose $142 Mn to $188 Mn in the October 2024 month as compared to October 2023 month. This was led by kiwifruit, which increased $133 Mn to $146 million. 

Top Market Movers: Among top gainers, Move Logistics Group Ltd (NZX: MOV) rose by 14.71% to $0.195 per share. On the other hand, Solution Dynamics Limited (NZX: SDL) declined by 28.57% to $0.80 per share. 

Commodity Update:  The U.S. dollar remained stable against major currencies on Wednesday as investors digested President-elect Donald Trump’s tariff proposals while awaiting key U.S. inflation data. In the commodities market, gold saw a 0.69% increase, reaching $2,664.70 per ounce, and silver rose by 0.50%, trading at $30.98 per ounce. Copper surged by 0.44%, hitting $9,014.50 per ton. Meanwhile, Brent crude dropped slightly by 0.01%, settling at $72.79 per barrel as markets weighed the impact of a potential ceasefire between Israel and Hezbollah, with attention also focused on Sunday’s OPEC+ meeting and upcoming U.S. GDP data for further guidance. 

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Source: Trading View, Analysis: Kalkine Group  

In July 2024, the S&P/NZX 50 index surpassed both the neckline of a Head and Shoulders pattern on the daily chart and a key resistance level marked by its 2023 high. This breakout indicates that the uptrend, which started in November 2023, is likely to persist and could push the index toward its historical peak from 2021. Moreover, the index recently surpassed its previous peak, reinforcing the ongoing uptrend. Furthermore, the 14-day Relative Strength Index (RSI) is heading north from its midpoint, indicating a positive short-term market sentiment. 

 
Our Stance: It could be said that the NZ equities were supported by buying in the consumer staples sector. While it seems that the post-election rally has been resumed in the broader US markets, the potential impacts from the Trump’s policies are still uncertain. Therefore, market participants believe that there could be some volatility. The NZ market might also be impacted from the fluctuations in the global market. On 2nd December 2024, Stats NZ would be releasing data about building consents issued (October 2024).   

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