NZ Market Closes in Green Amidst Buying in Healthcare Sector

Image Source : Krish Capital Pty Ltd

Index Update: On 21st May 2025, the broader NZ market ended higher as healthcare sector witnessed strong buying momentum. On the same day, S&P/NZX 50 Index witnessed a rise of 0.47% to end the session at 12,703.100 and S&P/NZX 20 Index rose by 0.40% to 7,525.340. Also, S&P/NZX 10 Index encountered a rise of 0.64% to end at 12,598.870. Notably, S&P/NZX All Health Care witnessed a strong rise of 2.47% to 3,091.780. On the other hand, S&P/NZX All Materials fell by 1.70%.   

Macro Update: NZ’s merchandise trade surplus in April 2025 amounted to $1.4 Bn as compared to the deficit of $12 Mn in April 2024, as per Stats NZ. NZ imported $6.4 Bn and exported $7.8 Bn of goods in April 2025. Notably, the milk powder was the largest contributor to exports in April 2025, touching $1.0 Bn, a rise of $247 Mn (or 32%) as compared to April 2024.     

Top Market Movers: Among top gainers, Rua Bioscience Limited (NZX: RUA) witnessed a rise of 7.41% to end at $0.029 per share. On the other hand, Comvita Limited (NZX: CVT) declined by 9.52% to $0.57 per share.  

Commodity Update: The U.S. dollar extended losses for a third session on Wednesday, pressured by political uncertainty as President Trump struggled to unite Republicans behind his tax overhaul. Gold gained 0.64% to $3,305.60, silver rose 0.26% to $33.26, and copper increased 0.04% to $9,581.45. Brent crude surged 1.50% to $66.42 after reports of Israeli military planning raised fears of supply disruptions amid rising U.S. crude inventories.  

Source: Trading View, Analysis: Kalkine Group   

The S&P/NZX 50 Index posted a modest gain in the latest trading session, advancing by 58.87 points and forming a small bullish candlestick on the daily chart. The index continues to trade above its 21-period Simple Moving Average (SMA), which is acting as dynamic support and reinforcing the short-term uptrend. A key support level remains at 12,400, and maintaining price action above this zone is crucial for preserving recent gains and sustaining upward momentum. From a broader technical standpoint, the weekly chart also shows the index holding above its 21-period SMA, confirming the strength of the longer-term uptrend. This alignment across both daily and weekly timeframes reflects a resilient technical structure, suggesting that the index retains upside potential despite short-term volatility.  

Our Stance: It could be said that a buying in the broader healthcare sector supported the NZ market on 21st May 2025. RBNZ stated that the domestic activity was dampened because of weak labour market conditions, lower migration as well as softness in the housing market. Furthermore, the credit demand from households and businesses remains low. However, growth is projected to recover because of reduced interest rates and robust agricultural export prices.