Source: Krish Capital Pty Ltd

Index Update: On 18th September 2025, the NZ market closed the trading session in red amidst selling in the financials sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.82% to end at 13,120.030 and S&P/NZX 20 Index fell by 1.07% to 7,551.330. Also, S&P/NZX 10 Index encountered a decline of 0.91% to 12,607.120. Notably, significant selling was witnessed in the financial sector and S&P/NZX All Financials declined 2.23%.  

Macro Update: As per Stats NZ, NZ’s GDP declined 0.9% in the June 2025 quarter, after the 0.9% rise in the March 2025 quarter. The activity decreased in the quarter ended June 2025 across 2 out of 3 high-level industry groups: goods-producing industries declined 2.3%, and primary industries fell 0.7%. Also, service industries remained flat. 

Top Market Movers: Among top gainers, New Talisman Gold Mines Limited (NZX: NTL) witnessed a rise of 16.00% to end at $0.058 per share. On the other hand, Winton Land Limited (NZX: WIN) fell by 6.44%.  

Commodity Update: The U.S. dollar steadied Thursday after hitting a 3-1/2-year low before rebounding, as traders assessed the Fed’s cautious stance on further rate cuts. Gold slipped 0.48% to $3,700, silver fell 0.32% to $42.01, and copper edged down 0.01% to $9,995.35. Brent crude dropped 0.50% to $67.62 after a recent rally, with prices supported earlier by Fed cuts, mixed U.S. inventory data, and supply concerns from Russia-Ukraine tensions. 

Source: Trading View, Analysis: Kalkine Group 

After beginning a short-term rally in April 2025, the S&P/NZX 50 index has recently revisited its 2024 peak at 13,270. Additionally, the index continues to register higher highs and higher lows, signaling that the uptrend is still intact. A decisive break above this resistance would strengthen bullish momentum and potentially pave the way for a test of the all-time high at 13,636. On the downside, immediate support lies at 12,750, with a breach of this level serving as an early warning signal. Meanwhile, the 14-day Relative Strength Index (RSI) is trading near its midpoint, reflecting a neutral market sentiment. 

Our Stance: It could be said that the selling in the financial sector somewhat impacted the broader NZ market on 18th September. While the US Fed decided to cut the interest rate by 0.25 percentage points (as was expected by the market), there are expectations of further cuts in 2025. Recently, RBNZ stated that the subdued demand as well as low profitability have been contributing to the financial stress for some businesses. Moving forward, the global economic environment and geopolitical developments are likely to influence the NZ markets.  

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