NZ Market Closes Lower

Image Source : Krish Capital Pty Ltd

Index Update: On 22nd May 2025, the broader NZ market ended the trading session lower amidst selling in the real estate sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.32% to end the trading session at 12,662.250 and S&P/NZX 20 Index fell by 0.31% to 7,501.950. Also, S&P/NZX 10 Index encountered a decline of 0.26% to end at 12,566.440. S&P/NZX All Real Estate witnessed a fall of 1.38% to 1,532.460 and S&P/NZX Real Estate Select Index fell by 1.36% to 1,549.390. However, S&P/NZX All Consumer Discretionary rose by 0.21%.   

Macro Update: The Treasury NZ released Budget 2025. It delivers additional investment towards health, education, law and order as well as other frontline public services. Furthermore, KiwiSaver changes are expected to support Kiwis in encouraging them to save for their first home and retirement as well as to make the scheme more fiscally sustainable. The Budget also delivers the cost-of-living support for the low- to middle-income families and other groups.    

Top Market Movers: Among top gainers, Blis Technologies Limited (NZX: BLT) witnessed a rise of 14.29% to end the session at $0.016 per share. On the same day, PaySauce Limited (NZX: PYS) declined by 6.10% to $0.1540 per share. 

Commodity Update: The dollar fell to a two-week low against the yen on Thursday amid U.S. fiscal concerns and weak Treasury bond auction results. President Trump’s efforts to advance his tax and spending bills increased market unease. Gold rose 0.95% to $3,344.80, silver gained 0.43% to $33.77, and copper edged up 0.31% to $9,555.50. Brent crude slipped 0.50% to $64.61 due to rising U.S. stockpiles and Iran deal uncertainty.  

Source: Trading View, Analysis: Kalkine Group   

Following a recent pullback, the S&P/NZX 50 surpassed its previous high of 12,400 points and moved above the 50-day simple moving average — a key indicator of trend direction — signaling a potential recovery. Despite experiencing the recent minor correction, the index remains above the 12,400 level, suggesting the recovery trend is still intact. Additionally, the 14-day Relative Strength Index (RSI) is holding above its midpoint, reflecting continued positive market sentiment.   

Our Stance: It could be said that selling in the real estate sector somewhat impacted the broader NZ market on 22nd May 2025. Furthermore, the Budget 2025 is expected to encourage business investment that increases the wages and grows the economy. Furthermore, it delivers a new infrastructure, which consists of a $1 billion investment in hospitals as well as over $700 million investment in schools. Globally, the US markets were impacted by the concerns around increasing deficit. Also, higher bond yields impacted the equities. Overall, the macroeconomic uncertainty and trade worries might continue to influence the markets moving forward.