Image Souce: Krish Capital Pty Ltd
Index Update: On 26th November 2024, the broader NZ market ended in red as communications services sector witnessed a decline. On the same day, S&P/NZX 50 Index witnessed a fall of 0.62% to end the session at 13,113.760 and S&P/NZX 20 Index fell by 0.78% to 7,911.040. Also, S&P/NZX 10 Index declined 1.07%. S&P/NZX All Communications Services witnessed a decline of 2.64%. However, S&P/NZX All Information Technology rose by 9.58%.
Macro Update: As per Stats NZ, the imports of vehicles, parts, and accessories to New Zealand declined $2.95 billion to $8.9 billion in the year ended October 2024 as compared to the year ended October 2023. Notably, leading the decline were passenger motor vehicles (down $1.8 Bn), vehicles for the transport of goods (down $469 Mn), and tractors (down $349 Mn). The total value of passenger motor vehicles imported in the 12 months to October 2024 stood at $5.4 Bn– a decrease of 25% on the previous year.
Top Market Movers: Among top gainers, Gentrack Group Limited (NZX: GTK) witnessed a rise of 24.36% to end the session at NZ$12.61 per share. On the other hand, Santana Minerals Limited (NZX: SMI) declined by 8.33% to NZ$0.55 per share.
Commodity Update: The U.S. dollar strengthened against major currencies on Tuesday following President-elect Donald Trump’s announcement of new tariffs: a 25% levy on goods from Mexico and Canada, and an additional 10% on Chinese products, citing concerns over illegal immigration and drug trade. In commodities, gold rose 0.37% to $2,652.70 per ounce, while silver gained 0.42% to $30.78 per ounce. Copper fell by 0.33% to $9,024.50 per ton. Brent crude dropped 0.33% to $72.73 per barrel after reports that Lebanon and Israel reached an agreement to end the Israel-Hezbollah conflict, triggering an oil selloff. Investors await U.S. GDP data this week for further direction.

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 heading north from its midpoint, indicating a positive short-term market sentiment.
Our Stance: It could be said that the NZ equities were impacted by the broad-based decline in the overall market. It seems that the US markets have resumed their post-election run as Dow Jones Industrial Average ended higher on November 25. While the markets are expected to be affected by the earnings results moving forward, the uncertainty pertaining to economic growth might impact the momentum. The macroeconomic data might also influence NZ equities. On 28th November, data about employment indicators (October 2024) is expected to be released.






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