Index Update: On 4th February, the broader NZ market ended marginally higher amidst buying in the utilities sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.34% to end at 13,467.290 and S&P/NZX 20 Index rose by 0.45% to close at 7,669.750. Also, S&P/NZX 10 Index encountered a rise of 0.42% to 12,927.660. Notably, some buying was witnessed in the utilities sector, and S&P/NZX All Utilities rose by 2.05%. However, S&P/NZX All Information Technology declined by 4.78%.  

Macro Update: As per Stats NZ, NZ’s seasonally adjusted unemployment rate stood at 5.4% in the quarter ended December 2025 as compared to 5.3% in the previous quarter. The unemployment rate of 5.4% was the highest since the quarter ended September 2015, when it stood at 5.7%. Over the quarter, there were increased engagement levels in the labour market as both employment as well as unemployment increased.

Market Movers: Among top gainers, Asset Plus Limited (NZX: APL) witnessed a rise of 3.66% to $0.198 per share. On the other hand, Synlait Milk Limited (NZX: SML) declined by 18.11% to $0.52 per share.

Commodity Update: The U.S. dollar traded largely steady on Wednesday as investors stayed cautious after a brief U.S. government shutdown ended, while the yen hovered near a two-week low ahead of a closely watched national election. Precious metals strengthened, with gold rising 2.74% to USD 5,071.90 and silver up 4.01% to USD 86.64. Copper slipped 0.77% to USD 13,365.40. Brent crude edged 0.10% higher to USD 67.98 amid renewed geopolitical tension in the Strait of Hormuz.

Our Stance: The US technology sector witnessed the selling pressure on February 3. Notably, some positive momentum was witnessed in the gold and silver asset classes as investors’ sentiments were negatively impacted. Coming to the NZ markets, the broader market ended in a positive territory amidst the release of seasonally adjusted unemployment rate. Across the Asian markets, there were tensions after the significant sell-off in the technology sector on the Wall Street. Moving forward, the macro-economic developments are expected to shape the trading picture in the NZ market.

Source: Trading View, Analysis: Kalkine Group

After declining in early trade, the S&P/NZX 50 Index rebounded strongly as buying interest emerged near a key support zone, allowing the market to erase all intraday losses and form a Bullish Hammer candlestick, gaining 45.78 points, or 0.34%, to finish at 13,467.29. Despite that, the benchmark is still likely to remain in a consolidation phase - limited by resistance near its record high and underpinned by firm support around the December 2024 peak - the near-term outlook remains broadly balanced. Notably, the index continues to trade above its previous swing low, suggesting the primary bullish trend is still intact despite recent volatility. From a technical perspective, momentum is moderating, with buyers repeatedly stepping in to defend important support levels. Looking ahead, immediate resistance stands at the recent high of 13,757.71; a decisive breakout above this level would strengthen bullish conviction and potentially pave the way toward the psychological 14,000 mark. On the downside, initial support is concentrated around the 13,250 zone, where sustained price stability would help maintain the constructive technical structure and reduce the risk of a deeper correction.

You Are a Few Steps Away From Gaining Smart Market Insights

Sign up/Login Now and Gain Access to Exciting Opportunities from Investor and Resource Space!