Image Source : Krish Capital Pty Ltd

Index Update: On 14th August 2025, the NZ market closed the trading session in green amidst broad-based buying. On the same day, S&P/NZX 50 Index witnessed a rise of 0.53% to end at 12,834.080 and S&P/NZX 20 Index increased by 0.48% to 7,515.340. Also, S&P/NZX 10 Index rose by 0.40% to 12,567.920. Notably, significant buying was witnessed in the materials sector and S&P/NZX All Materials increased by  3.49% to 973.380.   

Macro Update: As per the FEU dated 31 July 2025, NZ’s export concentration needs to be viewed within the global context. The trade with China has increased worldwide and their relative proximity as well as product complementarity makes it reasonable to anticipate an increased level of trade with NZ. However, evidence from recent years showcases that NZ’s reliance might be easing. This is mainly because of slower economic growth in China as well as the resurgence of service sector exports, primarily tourism.   

Top Market Movers: Among top gainers, Westpac Banking Corporation (ASX: WBC) witnessed a rise of 6.45% to end at $39.45 per share. On the other hand, AoFrio Limited (NZX: AOF) declined by 7.79% to $0.071 per share.  

Commodity Update: The U.S. dollar hovered near multi-week lows Thursday as traders increased bets on a Federal Reserve rate cut next month. Gold rose 0.18% to $3,414.50, silver gained 0.42% to $38.76, and copper inched up 0.19% to $9,827.40. Brent crude climbed 0.43% to $65.91, rebounding from the prior session’s sell-off, with the upcoming Trump–Putin meeting adding risk premiums to the market.  

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.   

Our Stance: It could be said that the significant buying in the materials sector somewhat supported the broader NZ market on 14 August. As the broader market continues to expect a rate cut, the equities are being affected by the macro-economic news and trade developments. On the other hand, the investors are required to be cautious about the volatile currency markets. On August 15, the data about the US retail sales is expected to be released.  

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