NZ Market Closes Lower Amidst Decline in Broader Market

Image Source : Krish Capital Pty Ltd

Index Update: On 17th June 2025, the broader NZ market ended lower amidst selling in the materials sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.40% to end the session at 12,639.350 and S&P/NZX 20 Index declined by 0.24% to 7,451.840. Also, S&P/NZX 10 Index fell by 0.02% to 12,504.600. Notably, materials sector witnessed significant selling pressure, and S&P/NZX All Materials fell by 4.11%. However, S&P/NZX All Financials increased by 2.91%.   

Macro Update: As per Stats NZ, food prices rose 4.4% in the 12 months ended May 2025, after the 3.7% rise in the 12 months ended April 2025. The increased prices for the grocery food group and the meat, poultry, and fish group contributed most to the annual rise in food prices, up by 5.2% and 5.4, respectively. The price rise for the grocery food group was because of increased prices for milk, butter, and cheese.  

Top Market Movers: Among top gainers, Being AI Limited (NZX: BAI) witnessed a rise of 12.28% to end at $0.064 per share. On the other hand, KMD Brands Limited (NZX: KMD) declined by 7.94%.    

Commodity Update: The U.S. dollar edged slightly on Tuesday, while most currencies traded within narrow ranges amid persistent Middle East tensions and anticipation of key central bank decisions. Gold slipped 0.13% to $3,412.45, silver inched up 0.02% to $36.47, and copper declined 0.32% to $9,679.35. Brent crude rose 0.30% to $73.46 as President Donald Trump warned Tehran over the Israel-Iran conflict, which fueled supply disruption concerns.  

Source: Trading View, Analysis: Kalkine Group   

Following a sustained upward rally that began in October 2023, the S&P/NZX 50 index appears to be transitioning into a consolidation phase. This is evidenced by the formation of a lower high and a higher low on the chart - typically a technical signal that the market may be entering a trading range. Unless there is a clear breakout above the previous resistance level at 12,881 points or a breakdown below the earlier support level at 12,254 points, this sideways movement is expected to persist in the near term. Additionally, the 14-day Relative Strength Index (RSI) is currently hovering around its midpoint, which reinforces the previous outlook. As a result, investors may need to wait for a decisive move in either direction before gaining greater clarity on the market’s next trend.  

Our Stance: It could be said that selling in the materials sector somewhat impacted the broader NZ market on 17th June 2025. While the market experts continue to track the developments happening around the conflict between Israel and Iran, they are also required to closely watch the commodity markets. The geopolitical developments tend to impact the broader movement in oil prices. Also, another key point is the upcoming decision from the US Federal Reserve, which is expected to be announced on 18th June.