Image Source : Krish Capital Pty Ltd
Index Update: On 23rd January 2025, the broader NZ market ended higher amidst buying in the energy sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.18% to end the session at 13,060.080 and S&P/NZX 20 Index increased by 0.07% to close at 7,827.020. Also, S&P/NZX 10 Index increased by 0.56%. S&P/NZX All Energy witnessed a rise of 2.08% to 1,698.290. On the other hand, S&P/NZX All Materials declined by 2.50%.
Macro Update: As per Stats NZ, the overseas visitor arrivals were 321,200 in November 2024, reflecting an increase of 17,800 from November 2023. The biggest changes were in arrivals from Australia (up 14,100), United Kingdom (up 3,700), etc. The total number of overseas visitor arrivals in November 2024 represented 86% of the 372,100 in November 2019 (before the COVID-19 pandemic). Of the 321,200 overseas visitor arrivals in November 2024, 39% were from Australia (as compared to 36% in November 2019).
Top Market Movers: Among top gainers, Cooks Coffee Company Limited (NZX: CCC) witnessed a rise of 5.66% to end at $0.28 per share. On the other hand, Burger Fuel Group Limited (NZX: BFG) declined by 8.22% to $0.335 per share.
Commodity Update: The dollar remained steady on Thursday, showing little movement ahead of upcoming tariff announcements from U.S. President Donald Trump. Market attention is also focused on upcoming central bank decisions, with the Bank of Japan expected to raise interest rates at the end of its two-day meeting on Friday. The U.S. Federal Reserve and European Central Bank are set to announce their rate decisions next week. In commodities, gold dropped 0.17% to $2,760.60, silver fell 0.75% to $31.18, and copper declined by 0.77% to $9,171.50. Brent crude saw a slight drop of 0.30% to $78.79 per barrel, with uncertainty surrounding global tariffs affecting energy demand.

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. Since the breakout, the index has been forming higher highs and higher lows and bouncing off a short-term upward trendline established since June 2024 in the last trading session, reinforcing the prevailing uptrend. Meanwhile, the 14-day Relative Strength Index (RSI) is trading above its midpoint, reflecting positive market sentiment in the short-term.
Our Stance: It could be said that the buying in the energy sector supported the broader NZ market. While there is some sort of global optimism on economic growth, investors are required to be cautious as there are uncertainties regarding the macro-economic policies by the Donald Trump. Moving forward, global developments, including central bank decisions and commodity price fluctuations, are expected to shape the market direction.






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