NZ Market Ends in Green Amidst Buying in Materials Sector

Image Source : Krish Capital Pty Ltd

Index Update: On 7th October 2025, the NZ market closed the trading session in green amidst buying in the materials sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.31% to end the session at 13,531.290 and S&P/NZX 20 Index encountered an increase of 0.24%. Also, S&P/NZX 10 Index rose by 0.18% to 12,889.200. Notably, strong buying was witnessed in the materials sector and S&P/NZX All Materials rose by 2.41%.    

Macro Update: As per the FEU dated 25 September 2025, the GDP contracted in the June quarter. Also, the construction sector was significantly impacted as interest rate cuts take time to filter through. However, the service sectors were mixed. The bright spot was retail trade, which witnessed an increase for the 3rd consecutive quarter. This demonstrates that lower interest rates continue to provide some boost to household spending.     

Top Market Movers: Among top gainers, Being AI Limited (NZX: BAI) witnessed a rise of 15.05% to end at $0.107 per share. On the other hand, PaySauce Limited (NZX: PYS) fell by 6.67%.   

Commodity Update: The yen fell to a two-month low against the dollar as the focus in Japan shifted to the potential cabinet lineup under fiscal dove Sanae Takaichi following her party leadership win. Gold rose 0.31% to $3,988.00, while silver slipped 0.12% to $48.38 and copper gained 0.38% to $10,686.80. Brent crude inched up 0.02% to $65.48 amid concerns about weak demand and expectations of limited OPEC+ output increases.  

Source: Trading View, Analysis: Kalkine Group  

After a short-term correction within a broader uptrend characterized by a consistent sequence of higher highs and higher lows, the S&P/NZX 50 index has recently broken above its 2024 peak at 13,270. This breakout provides confirmation that the underlying bullish structure remains intact and could act as a catalyst for renewed upward momentum. From a technical perspective, this decisive breakout opens the door for a potential retest of the all-time high at 13,636. If the index can sustain its position above the former resistance at 13,270, this level may now serve as a strong support base, adding further credibility to the positive outlook. Additionally, the momentum indicator 14-day Relative Strength Index (RSI) is heading north from its midpoint, providing further support for the previous view.  

Our Stance: It could be said that buying in the materials sector somewhat supported the broader NZ market on 7 October 2025. Amidst the political uncertainty as well as the US government shutdown, the investors are required to maintain a cautious stance. While the expectations of the rate cuts by the US Fed continue to help the sentiments, it needs to be noted that commodity and currency markets remain volatile.