NZ Market Ends in Red

Image Source : Krish Capital Pty Ltd

Index Update: On 19th August 2025, the NZ market ended the session in red amidst broad-based selling. On the same day, S&P/NZX 50 Index witnessed a decline of 0.32% to end at 12,928.680 and S&P/NZX 20 Index fell by 0.30% to 7,581.330. Also, S&P/NZX 10 Index witnessed a fall of 0.49% to 12,642.000. Also, significant selling was witnessed in the communications services sector and S&P/NZX All Communications Services fell by 1.47%.   

Macro Update: Stats NZ released data about business price indexes (June 2025 quarter). In the June 2025 quarter, the output producers price index (PPI) increased by 0.6% compared to the March 2025 quarter. Also, the input PPI increased by 0.6% and the farm expenses price index (FEPI) rose by 0.5%. As per the release, the largest output industry contributions were from electricity, gas, water and waste services (up by 6.2%).   

Top Market Movers: Among top gainers, AoFrio Limited (NZX: AOF) witnessed a rise of 11.11% to end at $0.08 per share. On the other hand, Metro Performance Glass Limited (NZX: MPG) declined by 25%.  

Commodity Update: The U.S. dollar held steady on Tuesday as markets awaited the outcome of a White House summit with European nations, seen as pivotal for the next phase of the Ukraine war. Precious metals were mixed: gold rose 0.05% to $3,379.60, silver slipped 0.37% to $37.88, and copper edged up 0.02% to $9,750.00. Brent crude eased 0.11% to $65.53 amid speculation that U.S.-Russia-Ukraine talks may ease sanctions on Russian oil.  

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, the index has appeared a positive sign when surpassing a minor Inverse head and shoulders pattern. Hence, a breakout above the 12,983 level would signal renewed bullish momentum and potentially pave the way for a move to fresh highs. Conversely, Immediate support lies at 12,614 points, and a decisive break below this level could trigger a further decline toward the next support around 12,42. Additionally, the 14-day Relative Strength Index (RSI) has surpassed its midpoint in the last trading session, reflecting a shift from investor sentiment from negative to positive.  

Our Stance: It could be said that the selling in the communications services sector somewhat impacted the broader NZ market on 19th August. Moving forward, the earnings from some of the renowned retailers are expected to influence the broader US markets. The consumer sentiment is one of the critical factors which can influence the rate decisions and broader economic outlook. Overall, the investors are required to be cautious amidst volatile commodity markets.