NZ Market Ends Higher Amidst Broad-based Buying

Image Source : Krish Capital Pty Ltd

Index Update: On 11th August 2025, the NZ market ended higher amidst broad-based buying. On the same day, S&P/NZX 50 Index witnessed a rise of 0.52% to end at 12,911.860 and S&P/NZX 20 Index increased by 0.56% to 7,576.220. Also, S&P/NZX 10 Index encountered an increase of 0.62% to 12,665.350. Notably, financials sector witnessed buying momentum and S&P/NZX All Financials increased by 1.52% to end at 1,614.140. However, S&P/NZX All Materials declined by 1.28%.  

Macro Update: According to the Budget Economic and Fiscal Update 2025, despite the slowing global outlook, the conditions are in place to help a pickup in the domestic activity over 2025. This is helped by the reduced interest rates, high terms of trade, increased net migration as well as house prices. The Investment Boost policy helps in promoting economic growth by enabling companies to expense more capital expenditure upfront, which helps in lifting business investment.   

Top Market Movers: Among top gainers, Enprise Group Limited (NZX: ENS) witnessed a rise of 7.27% to end at $0.59 per share. On the other hand, Metro Performance Glass Limited (NZX: MPG) witnessed a decline of 20.00% to end at $0.04 per share.  

Commodity Update: The U.S. dollar held steady on Monday after last week’s losses, with traders awaiting Tuesday’s July CPI report and progress in U.S.-China trade talks to avoid higher tariffs. Gold dropped 1.50% to $3,439.10, silver fell 0.97% to $38.18, and copper gained 0.14% to $9,778.45. Brent crude slipped 0.78% to $66.07, extending a 4% weekly decline on higher U.S. tariffs, OPEC’s output hike, and optimism over a potential U.S.-Russia-Ukraine ceasefire agreement.  

Source: Trading View, Analysis: Kalkine Group 

Following a consolidation phase that came after a sustained rally starting in October 2023, the S&P/NZX 50 index has recently attempted to rebound and re-test the ascending trendline from below, though this effort has not yet succeeded. In the short term, caution is warranted as the index has broken below a minor double top formation. Immediate support lies at 12,614 points, and a decisive break below this level could trigger a further decline toward the next support around 12,421. Conversely, a breakout above the 12,983 level would signal renewed bullish momentum and potentially pave the way for a move to fresh highs. Additionally, the 14-day Relative Strength Index (RSI) has surpassed its midpoint in the last trading session, reflecting a shift from investor sentiment from negative to positive.  

Our Stance: It could be said that the broad-based buying momentum somewhat supported the broader NZ market on 11 August 2025. Moving forward, the broader NZ economy is expected to be affected by the global macro-economic events and developments around interest rates and trade policies. According to the Budget Economic and Fiscal Update 2025, the growth in tax revenue is mainly because of strengthening labour market. The global markets are expected to be affected by the critical inflation reports which are expected in the week ahead.