NZ Market Ends in Green Amidst Buying in Energy Sector

Image Source : Krish Capital Pty Ltd

Index Update: On 16th June 2025, the broader NZ market ended the trading session in green amidst buying in the energy sector. On the same day, S&P/NZX 50 Index witnessed a rise of 1.09% to end at 12,690.130 and S&P/NZX 20 Index rose by 1.03% to 7,470.020. Also, S&P/NZX 10 Index encountered a rise of 1.16% to 12,506.630. Notably, energy sector witnessed buying momentum and S&P/NZX All Energy increased by 1.91%.   

Macro Update: The focus of Budget 2025 revolves around Investment Boost, which is a tax incentive for businesses to make investments in productive assets. With Investment Boost, the businesses are allowed to deduct 20% of a new asset’s value from that year’s taxable income, on top of the normal depreciation. Business investment improves productivity of workers, lifts incomes as well as fuels long-term economic growth.   

Top Market Movers: Among top gainers, Tourism Holdings Limited (NZX: THL) rose by 57.53% to end at $2.30 per share. On the other hand, NZ King Salmon Investments Limited (NZX: NZK) fell by 10.87% to $0.205 per share.   

Commodity Update: The dollar strengthened on Monday as escalating Israel-Iran tensions fueled safe-haven demand, with investors cautious ahead of key central bank meetings. Fears of a wider conflict and potential disruption at the Strait of Hormuz—vital for global oil transit—heightened market risk. Gold rose 0.14% to $3,458.00, silver edged up 0.10% to $36.39, and copper gained 0.10%. Brent crude climbed 0.50% to $74.59, extending gains amid rising supply concerns in the Middle East.  

Source: Trading View, Analysis: Kalkine Group   

Following a sustained upward rally that began in October 2023, the S&P/NZX 50 index appears to be transitioning into a consolidation phase. This is evidenced by the formation of a lower high and a higher low on the chart - typically a technical signal that the market may be entering a trading range. Unless there is a clear breakout above the previous resistance level at 12,881 points or a breakdown below the earlier support level at 12,254 points, this sideways movement is expected to persist in the near term. Additionally, the 14-day Relative Strength Index (RSI) is currently hovering around its midpoint, which reinforces the previous outlook. As a result, investors may need to wait for a decisive move in either direction before gaining greater clarity on the market’s next trend.  

Our Stance: It could be said that the buying in energy sector somewhat supported the broader NZ market on 16 June. The market experts believe that global equities might continue to be impacted by the ongoing war between Israel and Iran. Furthermore, in the near term, it is expected that geopolitics might impact the investors’ sentiments. Amidst these concerns, investors are required to closely track for developments around trade policy, and other macro-economic indicators.