NZ Market Ends Higher: A Quick Look

Image Source : Krish Capital Pty Ltd

Index Update: On 5th June 2025, the broader NZ market ended the trading session higher amidst buying in the real estate sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.66% to end at 12,577.150 and S&P/NZX 20 Index increased by 0.71% to 7,419.190. Also, S&P/NZX 10 Index witnessed an increase of 0.50% to close at 12,430.040. Notably, S&P/NZX Real Estate Select Index encountered an increase of 2.10% to 1,600.240 and S&P/NZX All Real Estate rose by 2.08%.   

Macro Update: As per Stats NZ, in the March 2025 quarter, the seasonally adjusted total building volume remained flat as compared to the December 2024 quarter, with residential rising 2.6% percent, and non-residential declining 3.9%. The total building value stood at $7.6 Bn, down by 10% from the March 2024 quarter. Notably, the residential construction prices increased 0.6% in the March 2025 quarter, while non-residential prices witnessed a rise of 0.2% (as measured by the capital goods price index).  

Top Market Movers: Among top gainers, Metro Performance Glass Limited (NZX: MPG) witnessed a rise of 14.00% to $0.057 per share. On the other hand, My Food Bag Group Limited (NZX: MFB) declined by 8.70% to $0.21 per share.  

Commodity Update: The dollar hovered near six-week lows on Thursday after weak U.S. data fueled fears of slow growth and persistent inflation. The euro remained steady ahead of an expected ECB rate cut. Gold dipped 0.10% to $3,395.95. Silver rose 0.11% to $34.74 per ounce, and copper gained 0.17% to $9,649 per metric ton. Brent crude slipped 0.30% to $64.65 amid rising U.S. fuel stocks and Saudi price cuts for Asia.  

Source: Trading View, Analysis: Kalkine Group   

Following a sustained upward rally that began in October 2023, the S&P/NZX 50 index appears to be transitioning into a consolidation phase. This is evidenced by the formation of a lower high and a higher low on the chart - typically a technical signal that the market may be entering a trading range. Unless there is a clear breakout above the previous resistance level at 12,881 points or a breakdown below the earlier support level at 12,254 points, this sideways movement is expected to persist in the near term. Additionally, the 14-day Relative Strength Index (RSI) is currently hovering around its midpoint, which reinforces the previous outlook. As a result, investors may need to wait for a decisive move in either direction before gaining greater clarity on the market’s next trend.  

Our Stance: It could be said that the buying in real estate sector somewhat supported the broader NZ market on 5th June. While there is some optimism in the broader global markets, the volatility in currency and commodity markets continues to impact the investors’ sentiments. However, RBNZ recently stated that the core inflation has been declining and there is spare productive capacity in the economy. Such conditions remain consistent with inflation coming back to the midpoint of the 1% - 3% target band over the medium term.