Image Source : Krish Capital Pty Ltd
Index Update: On 30th January 2025, the broader NZ market ended the trading session lower as Industrials sector witnessed a sell-off. On the same day, S&P/NZX 50 Index encountered a decline of 0.57% to end the session at 12,928.380 and S&P/NZX 20 Index fell by 0.67% to 7,742.830. Also, S&P/NZX 10 Index witnessed a decline of 0.91%. Notably, S&P/NZX All Industrials encountered a decline of 1.80% to end at 2,283.190.
Macro Update: The US was 2nd largest export destination for NZ goods in 2024, with a total value of $9.0Bn, as per Stats NZ. The US overtook Australia but remains behind China. NZ exports to the US exceeded $9.0 Bn for the first time in 2024, with the US getting 12% of its total exports by value ($71.0 Bn). By comparison, in the year ended December 2014, the US received 9.4% ($4.7 Bn) of NZ’s total goods export value ($50.1 Bn).
Top Market Movers: Among top gainers, General Capital Limited (NZX: GEN) witnessed a rise of 5.66% to end at $0.28 per share. On the other hand, Black Pearl Group Limited (NZX: BPG) declined by 10.09%.
Commodity Update: On Thursday, the U.S. dollar remained steady after the Federal Reserve signalled a pause in interest rate cuts. The Fed held rates steady, with Chair Jerome Powell indicating no rush to lower them further. President Donald Trump’s policies, including potential tariffs on Canada, Mexico, and China, continue to threaten the Fed's outlook. In commodities, gold rose 0.10% to $2,796.00, silver increased 0.64% to $31.58, while copper fell 0.10% to $9,067.50. Brent crude saw a slight increase of 0.10%, closing at $76.71 per barrel amid ongoing tariff concerns with major crude suppliers.

Source: Trading View, Analysis: Kalkine Group
In July 2024, the S&P/NZX 50 index surpassed both the neckline of a Head and Shoulders pattern on the daily chart and a key resistance level marked by its 2023 high. This breakout indicates that the uptrend, which started in November 2023, is likely to persist and could push the index toward its historical peak from 2021. Since the breakout, the index has been forming higher highs and higher lows and bouncing off a short-term upward trendline established since June 2024 in the last trading session, reinforcing the prevailing uptrend. Meanwhile, the 14-day Relative Strength Index (RSI) is trading near its midpoint, reflecting neutral market sentiment in the short-term.
Our Stance: It could be said that the selling in Industrials sector impacted the broader NZ market on 30th January. The US Federal Reserve kept interest rates unchanged, which reflects the cautious stance. Notably, the recent indicators demonstrate that economic activity has continued to expand at a solid pace. Also, the unemployment rate has stabilized at a low level and the broader labor market conditions are solid. Furthermore, new economic policies from the Trump administration continue to bring uncertainties. Therefore, the market players are required to be watchful when it comes to risky assets.






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