Image Souce: Krish Capital Pty Ltd

Index Update: On 7th November 2024, the broader NZ market ended in red amidst significant selling in the materials sector. On the same day, S&P/NZX 50 Index witnessed a fall of 0.54% and S&P/NZX 20 Index declined by 0.63% to end the session at 7,593.690. Also, S&P/NZX 10 Index fell by 0.27%. S&P/NZX All Materials encountered a fall of 7.40% to 1,082.790. Notably, S&P/NZX All Consumer Staples declined 2.15%.  

Macro Update: Stats NZ recently stated that the seasonally adjusted underutilisation rate stood at 11.6% in the September 2024 quarter as compared to 11.8% last quarter. For men, the underutilisation rate stood at 10.2% as compared with 10.0% last quarter. For women, the underutilisation rate was 13.0% as compared to 13.8% last quarter. In the September 2024 quarter, the seasonally adjusted proportion of people aged in the range of 15–24 who were not in employment, education, or training (NEET) stood at 12.3% as compared to 12.7% last quarter.  

Top Market Movers: Among top gainers, PaySauce Limited (NZX: PYS) witnessed a rise of 6.98% to end the session at $0.23 per share and Radius Residential Care Limited (NZX: RAD) rose by 5.26%. On the other hand, Rua Bioscience Limited (NZX: RUA) declined by 11.11%.  

Commodity Update: The dollar remained near a four-month high on Thursday as markets reacted to Donald Trump's victory in the 2024 U.S. presidential election. Investors shifted focus to upcoming central bank decisions, including the Federal Reserve's rate meeting. Commodities saw mixed results: gold dropped 0.44% to $2,664.50/oz, silver fell 0.40% to $31.19, and copper rose 0.83% to $9,444.50/ton. Crude oil prices increased 0.5% to $75.28 a barrel, with attention also on potential fiscal stimulus in China. Market participants watched closely for economic signals from the FOMC's upcoming policy decisions. 

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 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 oscillating between 40 and 60, indicating a neutral short-term market sentiment. 

Our Stance: It could be said that the broader NZ market was significantly impacted by the sell-off in the materials sector. Wall Street closed the session on a positive note, with NASDAQ Composite Index witnessing a rise of 2.95% to end at 18,983.47 on 6th November. Market experts believe that Trump would be supporting lower corporate taxes, and industrial policies. Collectively, these measures might lead to healthy growth. On 13th November, Stats NZ would be releasing data about international travel (September 2024).  

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