Image Souce: Krish Capital Pty Ltd

Index Update: On 16th December 2024, the broader NZ market ended in green amidst broad-based buying as healthcare sector closed higher. On the same day, S&P/NZX 50 Index witnessed a rise of 0.34% to end the session at 12,797.330 and S&P/NZX 20 Index rose by 0.23% to close at 7,676.220. Also, S&P/NZX 10 Index rose by 0.70%. Also, S&P/NZX All Health Care encountered a rise of 2.30% to end at 3,303.650. However, S&P/NZX All Consumer Discretionary declined by 1.54%.  

Macro Update: As per Stats NZ, domestic air transport prices increased 10.8% in November 2024 as compared with October 2024. Notably, this was the highest increase in domestic flight prices since July 2023. Domestic accommodation prices also increased, up by 6.9% over the month. The higher prices for domestic flights coincided with performances by several global artists around NZ. There was an increase in domestic hotel prices.  

Top Market Movers: Among top gainers, Rua Bioscience Limited (NZX: RUA) witnessed a rise of 29.63% to end the day at $0.035 per share. On the other hand, Ventia Services Group Limited (NZX: VNT) declined 20.00% to $3.76 per share.  

Commodity Update: The U.S. dollar remained near a three-week high against major currencies on Monday, amid expectations that the Federal Reserve will cut interest rates this week but signal a gradual easing pace for 2025. Bitcoin surged past $105,000 for the first time, fueled by reports that President-elect Donald Trump may proceed with a strategic Bitcoin reserve. In commodities, gold slipped 0.15% to $2,671.70 per ounce, silver gained 0.05% to $31.04 per ounce, and copper fell 0.15% to $9,048.50 per ton. Oil prices were subdued, with Brent crude down 0.30% to $74.28, as markets awaited the Federal Reserve's policy decision and assessed Chinese economic data. 

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. Moreover, since the break-out, the index has been forming higher highs and higher lows, reinforcing the ongoing uptrend. Furthermore, the 14-day Relative Strength Index (RSI) is trading near its midpoint, indicating neutral market sentiment in the short-term.  
Our Stance: It could be said that the broader NZ market was helped by the buying momentum in healthcare sector. For the market players, this week might be a busy one as various central banks are expected to be in the spotlight. FOMC interest-rate decision is expected to be released on 18th December. On 19th December, Bank of Japan and Bank of England might decide the market movements. The commentary from the US Fed will be an important event which will be closely watched by the market players. 

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