NZ Market Ends in Red: Consumer Staples Sector Witnesses Huge Sell-off

Index Update: On 19th January, the NZ market witnessed a decline amidst huge sell-off in the broader consumer staples sector. On the same day, S&P/NZX 50 Index witnessed a decline of 1.00% to end at 13,580.290 and S&P/NZX 20 Index fell by 1.16% to 7,705.700. Also, S&P/NZX 10 Index encountered a fall of 1.54% to close at 12,894.270. Notably, consumer staples sector witnessed a strong decline, with S&P/NZX All Consumer Staples index falling by 7.95%.     

Macro Update: As per Stats NZ, the food prices witnessed a decline of 0.3% in December 2025 as compared to November 2025. The reduced prices for the non-alcoholic beverages group, which were down by 2.1%, contributed the most to the monthly fall in food prices. Notably, this was followed by meat, poultry, and fish, which were down by 0.9% monthly. Furthermore, the fruit and vegetables group encountered a monthly increase of 1.8%.  

Market Movers: Among top gainers, Locate Technologies Limited (NZX: LOC) increased by 9.59% to end at $0.08 per share. On the other hand, The a2 Milk Company Limited (NZX: ATM) declined by 11.15%.   

Commodity Update: The dollar weakened on Monday as markets turned risk-averse following fresh tariff threats from U.S. President Donald Trump linked to Europe and Greenland. Safe-haven demand lifted the yen and Swiss franc. Gold surged 1.72% to USD 4,674.70, silver jumped 5.53% to USD 93.44, and copper rose 1.25% to USD 12,965.00. Brent crude was steady at USD 64.10 amid lingering Iran supply concerns. 

Source: Trading View, Analysis: Kalkine Group  

The S&P/NZX 50 Index dropped quite strong in the latest trading session, declining 137.81 points, or 1.00%. Despite this correction, the benchmark had already confirmed a decisive breakout above its former all-time high of 13,747.71, established in November 2025, three sessions earlier. This technical breakout strengthens the case for a resumption of upward momentum, with the next key resistance and near-term objective located near the psychologically significant 14,000 level. Moreover, the index is rebounding from the trend-following indicator 21-day SMA in the late session, indicating strengthening buying interest and supporting a constructive short-term technical outlook.  

Our Stance: While the broader markets throughout Asia were impacted by the tensions between US President and Europe, the NZ equities were mainly influenced by the steep decline in the shares of The a2 Milk Company Limited. As per experts, in such a scenario, the demand for safe havens tends to increase. Globally, the sentiments of US investors are being impacted by the concerns regarding the Greenland’s ownership. Amidst such factors, the investors need to also focus on the earnings reports from the well-established US companies.