Index Update: On 3rd December 2024, the broader NZ market closed lower amidst decline in the financials sector. On the same day, S&P/NZX 50 Index witnessed a fall of 0.16% to end the session at 13,093.180 and S&P/NZX 20 Index fell by 0.22% to 7,882.710. Also, S&P/NZX 10 Index declined 0.46%. Also, S&P/NZX All Financials witnessed a decline of 1.61% to end the session at 1,632.110. S&P/NZX 50 High Dividend Index increased 0.64%.
Macro Update: The value of imported international transportation services amounted to $1.7 Bn in the September 2024 quarter, as per Stats NZ. As per the release, NZ spending on transportation services in the September 2024 quarter was slightly up ($11 million or 0.7%) as compared with the September 2023 quarter. The 2 main components of transportation services, sea and air transportation, had contrasting movements over the same period.
Top Market Movers: Among top gainers, PaySauce Limited (NZX: PYS) witnessed a rise of 7.32% to end the session at NZ$0.22 per share. On the other hand, Comvita Limited (NZX: CVT) declined 7.29%.
Commodity Update: The dollar strengthened on Tuesday amid political unrest in France, which pressured the euro. At the same time, concerns over China's economic slowdown and tariff risks pushed the yuan to a one-year low. Investors are eyeing U.S. employment data on Friday, which could influence expectations on a potential Federal Reserve rate cut later this month, currently priced at a 50% chance. In commodities, gold rose 0.10% to $2,661.10, silver climbed 0.47% to $31.00, and copper dropped 0.32% to $8,975.50. Brent crude slipped 0.13% to $71.74 per barrel, with OPEC+ expected to extend output cuts through Q1 2025.

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 trading above its midpoint, indicating a positive short-term market sentiment.
Our Stance: It could be said that the broader NZ market was impacted by the decline in financials sector. Moving forward, the global and NZ markets are expected to be influenced by the corporate earnings and economic data calendars. On 5th December, data about initial jobless claims is expected to be released. On the same day, data about the US trade deficit will be also released. These macro-economic releases are expected to provide a broader overview of the US market.






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