Image Souce: Krish Capital Pty Ltd

Index Update: On 12th November 2024, the NZ market closed higher amidst broad-based buying momentum. On the same day, S&P/NZX 50 Index witnessed a rise of 0.50% to end the session at 12,749.360 and S&P/NZX 20 Index rose by 0.57% to 7,687.380. Also, S&P/NZX 10 Index encountered a rise of 0.75% to close at 13,049.710. Materials sector closed the session in green and S&P/NZX All Materials rose by 1.95% to 1,145.950. However, S&P/NZX All Consumer Staples declined by 2.19%.  

Macro Update: Stats NZ released data about electronic card transactions (October 2024). Notably, the spending in the retail industries rose 0.6% (or $39 Mn) and spending in the core retail industries increased 0.6% (or $35 Mn) as compared to September 2024. By retail spending category, hospitality was up by $24 Mn (2.0%), durables rose by $1.2 Mn (0.1%) and apparel was up by $0.8 Mn (or 0.2%).  

Top Market Movers: Among top gainers, Greenfern Industries Limited (NZX: GFI) witnessed a rise of 15.00% to end the session at NZ$0.023 per share. On the other hand, PaySauce Limited (NZX: PYS) declined by 6.52% to $0.215 per share. 

Commodity Update:  The U.S. dollar remained near a four-month high on Tuesday as markets awaited key inflation data and Federal Reserve comments. In commodities, gold rose 0.41% to $2,628.30/oz, silver gained 0.24% to $30.69, and copper increased 0.15% to $9,315.50/ton. Crude oil increased by 0.2% to $71.95 per barrel, recovering slightly after sharp losses the previous day. Investor concerns over China’s underwhelming stimulus measures and disappointing inflation data continued to weigh on oil prices. Meanwhile, the dissipation of Tropical Storm Rafael in the Gulf of Mexico eased fears of supply disruptions in the region. 

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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. While currently experiencing a minor pullback, the index continues to form higher highs and higher lows, reinforcing the ongoing uptrend. Furthermore, the 14-day Relative Strength Index (RSI) is trading above its midpoint, indicating a positive short-term market sentiment. 

Our Stance: It could be said that the broader NZ market was aided by the buying in the materials sector. It seems that the global markets are still being aided by the optimism around Trump’s win in the US Presidential election. On 11th November 2024,  Dow Jones Industrial Average witnessed a rise of 0.69% to end the session at 44,293.13. The global economic backdrop remains unpredictable, mainly because of the U.S. presidential election results as well as concerns regarding China’s economic outlook. Therefore, the overall sentiment points to cautious moves. 

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