NZ Market Closes Lower

Image Source : Krish Capital Pty Ltd

Index Update: On 31st July 2025, the broader NZ market closed the session lower amidst selling in the materials sector. On the same day, S&P/NZX 50 Index witnessed a fall of 0.25% to end at 12,823.740 and S&P/NZX 20 Index fell by 0.45% to 7,503.770. Also, S&P/NZX 10 Index declined by 0.62% to 12,522.190. Notably, significant selling was witnessed in the materials sector and S&P/NZX All Materials witnessed a fall of 2.62% to 945.810. S&P/NZX All Energy increased by 1.93%.   

Macro Update: As per New Zealand Foreign Affairs & Trade, there was a positive performance for the export sector, with exports increasing 7.4% to reach $105 Bn in the year ended March 2025. This has been supporting in fueling economic growth and has narrowed the trade deficit. The exports to the US rose 6.4% to $16.8 Bn with significant growth over the previous 6 months  

Top Market Movers: Among top gainers, Livestock Improvement Corporation Ltd (NZX: LIC) rose by 7.78% to $1.0 per share. On the other hand, Blis Technologies Limited (NZX: BLT) declined 10.53% to $0.017 per share.  

Commodity Update: The US dollar approached a two-month high on Thursday after Federal Reserve Chair Jerome Powell maintained a patient stance on interest rates, offering little guidance on potential rate cuts. Meanwhile, President Donald Trump’s softened copper tariffs pressured Comex premiums. Gold slipped 0.30% to $3,342.60 per ounce, silver dropped 1.73% to $37.09 per ounce, copper declined 0.40% to 9,679.45, and Brent crude rose 0.40% to $73.51 amid supply concerns and geopolitical tensions.  

Source: Trading View, Analysis: Kalkine Group   

After experiencing a period of consolidation that followed a sustained upward rally beginning in October 2023, the S&P/NZX 50 index broke decisively above a key resistance level at 12,881 points - an area previously marked by its former peak. This breakout suggests renewed bullish momentum in the market and signals the potential for further upside movement. If the current trend continues, the index may be poised to retest its most recent high, which lies around 13,250 points. Supporting this bullish outlook, the 14-day Relative Strength Index (RSI) is currently trading above its midpoint, indicating strengthening market momentum and improving investor sentiment.  

Our Stance: It could be said that the significant selling in the materials sector weighed over the NZ market on 31 July. Notably, the broader markets continue to be impacted by the US Fed’s views. As of now, the Chair has hinted that the US Fed has been assessing the tariffs’ impact on inflation. Also, investors are required to be cautious about the volatile commodity and currency markets. On August 1, the data about ISM manufacturing is expected to be released.