Index Update: On 20th January, the broader NZ market ended on a flat note, with S&P/NZX 50 Index witnessing a marginal fall of 0.05% to end at 13,573.930. On the same day, S&P/NZX 20 Index increased by 0.05% to close at 7,709.730 and S&P/NZX 10 Index rose by 0.03%. Notably, significant decline was encountered in the materials sector, and S&P/NZX All Materials fell by 2.50%. However, S&P/NZX All Industrials increased 0.71%.     

Macro Update: As per half-year economic and fiscal update 2025, the near-term cyclical weakness in the economy is anticipated to abate as and when stimulatory monetary policy takes hold as well as spare capacity gets utilized. Apart from the growth in real activity, growth in nominal income is helped by an elevated near-term path for prices. Notably, annual CPI inflation is expected to increase by 2.4% in the June 2026 year, before it returns to the midpoint thereafter.   

Market Movers: Among top gainers, Metro Performance Glass Limited (NZX: MPG) witnessed a rise of 4.08% to end at $0.051 per share. On the other hand, Manuka Resources Limited (NZX: MKR) declined by 6.53%.   

Commodity Update: On Tuesday, the U.S. dollar stayed under pressure while U.S. Treasury yields climbed to their highest level in over four months, as renewed trade-war concerns weighed on risk sentiment and triggered selling in U.S. assets. Gold advanced 1.72% to USD 4,673.50 and silver gained 4.85% to USD 92.83, while copper slipped 0.72% to USD 12,885.20. Brent crude edged up 0.30% to USD 64.13, supported by stronger-than-expected economic growth data from China and ongoing focus on President Donald Trump’s tariff-related remarks.  

Source: Trading View, Analysis: Kalkine Group  

Despite a sharp decline in early trading, the S&P/NZX 50 Index recovered from the 21-day simple moving average and finished the session largely unchanged, printing a Doji candlestick. While the index is currently undergoing a pullback from its recent high, it had already confirmed a clear breakout above its prior all-time peak of 13,747.71 set in November 2025, four sessions earlier. This breakout reinforces the outlook for a renewed upswing, with the next key resistance and near-term target positioned around the psychologically important 14,000 level. In addition, the late-session rebound from the 21-day SMA signals improving buying interest and underpins a constructive short-term technical bias.  

Our Stance: As of now, global investors are concerned about the fresh tariff threats on the countries which are against the sale of Greenland. Notably, the European leaders believe that these threats are unacceptable. Also, they might be considering countermeasures. Coming to NZ, while NZ markets were more or less flat, the broader momentum might get impacted due to the macro-economic tensions and trade uncertainty. Notably, on January 23, CPI data for December 2025 quarter is expected to be released.  

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!