NZ Market Closes Lower Amidst Decline in Consumer Staples Sector

Image Source : Krish Capital Pty Ltd

Index Update: On 24th June 2025, the NZ market ended the trading session lower amidst decline in the consumer staples sector. On the same day, S&P/NZX 50 Index encountered a fall of 0.52% to 12,467.480 and S&P/NZX 20 Index declined by 0.65% to end at 7,315.030. Also, S&P/NZX 10 Index witnessed a fall of 0.76%. Notably, consumer staples sector witnessed a fall, and S&P/NZX All Consumer Staples declined by 1.27% to 3,522.580. However, S&P/NZX All Energy rose by 2.37% to close at 1,934.930.   

Macro Update: As per FEU dated 19 June 2025, the manufacturing and business services have dominated GDP growth of 0.8% in the quarter ended March amidst encouraging signs from household spending. The exports of primary goods gave additional support, while last year’s tourism gains faded. The release also highlighted that military actions in the Middle East resulted in higher oil prices.   

Top Market Movers: Among top gainers, PaySauce Limited (NZX: PYS) witnessed an increase of 12.82% to end at $0.22 per share. On the other hand, Being AI Limited (NZX: BAI) declined by 18.57% to $0.057 per share.   

Commodity Update: The U.S. dollar weakened Tuesday as risk appetite improved after President Trump announced a ceasefire between Israel and Iran, ending a 12-day conflict. The Australian and New Zealand dollars rose in response. Gold fell 0.83% to $3,366.60, silver dipped 0.25% to $36.11, while copper increased 0.11% to $9,682.30. Brent crude spiked 3.2% to $69.20, driven by easing geopolitical tensions.  

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 consumer staples sector somewhat impacted the broader NZ market on 24th June. As of now, the broader markets are being influenced by the developments happening in the Middle East as well as the news related to the trade policy. Furthermore, the volatility in the oil prices continues to impact the investors’ sentiments. On June 26, the data about initial jobless claims is expected to be released, which could affect the broader US markets.