Image Source : Krish Capital Pty Ltd

Index Update: On 2nd May 2025, the broader NZ market ended the trading session in green amidst buying in the industrials sector. On the same day, S&P/NZX 50 Index witnessed a rise of 1.48% to 12,327.890 and S&P/NZX 20 Index rose by 1.74% to 7,304.740. Also, S&P/NZX 10 Index encountered a rise of 1.82%. Notably, S&P/NZX All Industrials witnessed an increase of 2.97% to end the session at 2,114.550. However, S&P/NZX All Materials encountered a fall of 0.60%.  

Macro Update: There were 34,062 new homes consented in Aotearoa NZ in the year ended March 2025, reflecting a fall of 3.3% as compared to the year ended March 2024, as per Stats NZ. In the year to March 2025, the North Island witnessed 23,570 new home consents, implying a fall of 7.1% as compared to the year ended March 2024. In contrast, the South Island witnessed a 6.4% rise over the same period, touching 10,491 new homes consented. 

Top Market Movers: Among top gainers, Rua Bioscience Limited (NZX: RUA) witnessed a rise of 14.29% to end the session at $0.032 per share. On the other hand, Comvita Limited (NZX: CVT) fell by 5.45% to $0.52 per share. 

Commodity Update: The U.S. dollar is on track for a third weekly gain, buoyed by encouraging trade talks and strong economic data. Gold rose 1.05% to $3,256.00, while silver dipped 1.34% to $32.62. Copper climbed 1.78% to $9,370.20. Brent crude gained 0.60% to $62.51 after China expressed openness to dialogue with the U.S., sparking optimism over easing trade tensions. 

Source: Trading View, Analysis: Kalkine Group   

After undergoing a correction, the S&P/NZX 50 index has begun to stabilize, forming a pattern of lower highs and higher lows. In its most recent session, the index broke above its previous peak of 12,400 points and crossed the 50-day simple moving average, a key trend-following indicator—suggesting a potential recovery is underway. Additionally, the 14-day Relative Strength Index (RSI) is rising above the midpoint, lending further support to this outlook. If this momentum continues, the index may approach the upward trendline that has been in place since October 2023, near the 12,750-point level, which could influence its next direction.   

Our Stance: It could be said that the strong buying in the industrials sector supported the broader momentum in the NZ market on 2nd May 2025. As of now, the investors continue to monitor the earnings from the big technology giants. These earnings are expected to affect the movement of the global equity markets.  

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