Image Source : Krish Capital Pty Ltd

Index Update: On 4th February 2025, the NZ market ended the trading session in green amidst broad-based buying in the healthcare sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.74% to end the session at 12,905.040 and S&P/NZX 20 Index rose by 0.72% to 7,742.070. Also, S&P/NZX 10 Index encountered a rise of 0.75% to 13,036.250. Notably, S&P/NZX All Health Care witnessed a rise of 2.08% to 3,250.340.  

Macro Update: There were 33,600 new homes consented in Aotearoa New Zealand during the year ended December 2024, reflecting a fall of 9.8% as compared with the year ended December 2023, as per Stats NZ. Notably, Otago was the only region with an increase in the number of new homes consented in 2024. The increase in the Otago region was mainly driven by the Queenstown-Lakes district.  

Top Market Movers: Among top gainers, Bremworth Limited (NZX: BRW) witnessed a rise of 14.58% to end the session at $0.55 per share. On the other hand, Cooks Coffee Company Limited (NZX: CCC) declined by 3.51% to end at $0.275 per share. 

Commodity Update: The U.S. dollar and oil declined on Tuesday following President Donald Trump's decision to pause new tariffs on Mexico for a month. This decision came after Mexico agreed to send 10,000 National Guard members to its northern border to curb illegal drug flows. The U.S. and Mexico will use the next month to negotiate further. In commodities, gold fell 0.05% to $2,855.40, silver rose 0.05% to $32.54, and copper advanced 0.46% to $9,172.50. Brent crude dropped 0.50% to $75.55. Investors are awaiting U.S. Non-Farm Payroll data for clearer rate direction. 

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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. Despite the ongoing correction, the index continues to establish higher highs and higher lows, confirming the prevailing uptrend. Meanwhile, the 14-day Relative Strength Index (RSI) is trading near its midpoint, reflecting neutral market sentiment in the short-term.  

Our Stance: It could be said that the buying in the healthcare sector supported the broader NZ market on 4th February 2025. As of now, the market players are fearing trade wars, which can impact the investors’ sentiments and broader equity markets. However, President Trump postponed the implementation of tariffs on Mexico and Canada. The trade wars can impact the companies having China exposure. Therefore, the market participants are required to be watchful while making short-term investments.  

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