Image Souce: Krish Capital Pty Ltd

Index Update: On 25th November 2024, the broader NZ market closed the session in green amidst significant buying in the Industrials sector. On the same day, S&P/NZX 50 Index witnessed a rise of 1.18% and S&P/NZX 20 Index rose by 1.23%. Also, S&P/NZX 10 Index increased 1.50%. Also, significant buying was encountered in the industrials sector and S&P/NZX All Industrials increased by 2.28% to end the session at 2,250.720.  

Macro Update: The total volume of retail sales in New Zealand fell by 0.1% in the September 2024 quarter as compared with the June 2024 quarter, as per Stats NZ. Notably, the figures are adjusted for price inflation and seasonal effects. The largest contributors to the fall in retail activity were supermarket and grocery stores, down 1.3%, as well as food and beverage services, down 2.1%.  

Top Market Movers: Among top gainers, Promisia Healthcare Limited (NZX: PHL) witnessed a rise of 17.81% to end the day at NZ$0.430 per share. On the other hand, Metro Performance Glass Limited (NZX: MPG) declined by 8.93% to NZ$0.051 per share. 

Commodity Update:  The dollar lost some of its recent strength on Monday as investors anticipated that the U.S. Treasury secretary pick would calm concerns in the bond market, leading to a drop in yields and reducing the dollar's rate advantage. In the commodities market, gold fell by 0.60% to $2,720.70 per ounce, while silver dropped 1.06% to $31.43 per ounce. Copper, however, rose by 0.98% to $9,073.50 per ton. Brent crude increased by 0.20% to $73.50 per barrel amid rising geopolitical tensions between Western powers and major oil producers Russia and Iran, raising supply disruption fears. 

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, the index recently surpassed its previous peak, reinforcing the ongoing uptrend. Furthermore, the 14-day Relative Strength Index (RSI) is heading north from its midpoint, indicating a positive short-term market sentiment. 

 
Our Stance: It could be said that the broader NZ market was supported by the buying witnessed in the Industrials sector. While the broader US markets witnessed a favourable movement after the Trump’s win, the markets might get influenced by the global macroeconomic data points which are expected to be released this week. These releases might also influence NZ equities. The Minutes of Fed's November FOMC meeting would be released on November 26 and data about Initial jobless claims will be released on November 27.  

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