Image Souce: Krish Capital Pty Ltd
Index Update: On 21st November 2024, the broader NZ market closed the session marginally higher as S&P/NZX 50 Index witnessed a rise of 0.22% to end the session at 12,765.240 and S&P/NZX 20 Index rose by 0.13% to 7,691.900. On the same day, S&P/NZX 10 Index increased by 0.04%. Notably, significant buying was witnessed in the IT sector and S&P/NZX All Information Technology increased by 3.50%. However, S&P/NZX All Energy fell by 0.56%.
Macro Update: Recently, The Treasury stated that NZ is currently running a structural fiscal deficit, with expenditure exceeding revenue. On the more positive note, there is scope for policy to help lift productivity growth over time by focusing towards areas like investment, internationalisation, innovation, and competition.
Top Market Movers: Among top gainers, Santana Minerals Limited (NZX: SMI) witnessed a rise of 8.40% to end the session at $0.645 per share. On the other hand, New Talisman Gold Mines Limited (NZX: NTL) declined by 10.00% to $0.018 per share.
Commodity Update: The U.S. dollar held steady on Thursday as traders awaited more details on President-elect Donald Trump's policies and speculated on the possibility of less aggressive interest rate cuts from the Federal Reserve. In commodities, gold rose by 0.10% to $2,654.40 per ounce, silver gained 0.24% to $31.07, and copper increased 0.26% to $9,113.50 per ton. Brent crude climbed 0.40% to $73.09 per barrel amid supply concerns fueled by escalating geopolitical tensions between Russia and Ukraine. OPEC+ is expected to delay output increases when it meets Dec. 1 due to weak global oil demand.

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. While currently experiencing a minor pullback, the index continues to form higher highs and higher lows, reinforcing the ongoing uptrend. Furthermore, the 14-day Relative Strength Index (RSI) is trading above its midpoint, indicating a positive short-term market sentiment.
Our Stance: It could be said that the broader NZ market was somewhat supported by the buying in IT sector. Moving forward, the global markets are expected to be impacted by the macro-economic updates. On 26th November, data about consumer confidence is expected to be released, which might affect the US equities. On the same day, the minutes of FOMC meeting will also be released. Therefore, there could be some volatility in global and NZ equities.






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