NZ Market Ends in Green: A Quick Look

Image Source : Krish Capital Pty Ltd

Index Update: On 24th April 2025, the NZ market closed the trading session in green amidst broad-based buying momentum. On the same day, utilities sector also witnessed some buying. S&P/NZX 50 Index witnessed a rise of 0.51% to end the session at 12,017.840 and S&P/NZX 20 Index increased by 0.39% to 7,131.570. Also, S&P/NZX 10 Index rose by 0.28%. S&P/NZX All Utilities witnessed an increase of 1.12% to 3,462.330.    

Macro Update: As per fortnightly economic update dated 17th April 2025, the seasonally adjusted visitor arrivals witnessed a decline to just more than 280,000 in February. This reflects a decline of ~4% from January. Notably, the month-on-month decline partly hints at this year’s Chinese New Year dates. Furthermore, monthly net migration witnessed a rise to 5,400 in February. This marks the largest monthly increase since 2023. This was driven by robust non-citizen migrant arrivals.  

Top Market Movers: Among top gainers, Metro Performance Glass Limited (NZX: MPG) witnessed a rise of 9.43% to $0.058 per share. On the other hand, Pacific Edge Limited (NZX: PEB) fell by 7.32%.  

Commodity Update: The dollar paused on Thursday after rebounding sharply, as President Trump stepped back from threats to fire Fed Chair Jerome Powell and signalled a softer China tariff stance. Gold jumped 1.79% to $3,352.10, silver dipped 0.38% to $32.42 and copper edged up 0.20% to $9,398.20. Brent crude rose 0.09% to $66.18, stabilising oil after a 2% drop amid mixed signals on OPEC+ output and U.S.-Iran talks. 

Source: Trading View, Analysis: Kalkine Group   

Following a break below the upward trendline that had held since November 2024 and showing signs of weakness, the S&P/NZX 50 index has continued to fall beneath a key support level — the neckline of a Head & Shoulders formation — suggesting the potential for further downside. This bearish momentum may push the index toward a major support zone around 11,500 points. At present, the index is showing an early sign of stabilization when forming lower highs and higher lows with a possible bullish divergence emerging on the 14-day Relative Strength Index (RSI) in its oversold territory. However, in order to signal a possible recovery, the index should manage to surpass its previous peak at 12,400 points.  

Our Stance: It could be said that the broad-based buying momentum supported the NZ equities on 24th April 2025. Moving forward, the global uncertainties around trade tensions as well as monetary policy can impact the broader equity markets in the near term. While the news related to tariffs will continue to influence the global markets, the developments around interest rates are required to be monitored. Therefore, capital markets are expected to be affected by the macro-economic news and updates.