NZ Market Ends Lower: A Quick Look

Image Source : Krish Capital Pty Ltd

Index Update: On 26th August 2025, the NZ market ended in red amidst broad-based selling pressure. On the same day, S&P/NZX 50 Index witnessed a decline of 0.93% to end at 12,957.980 and S&P/NZX 20 Index fell by 0.98% to 7,584.350. Also, S&P/NZX 10 Index declined by 1.17% to end at 12,630.340. Notably, significant selling was witnessed in the utilities sector and S&P/NZX All Utilities declined by 2.22% to 3,560.200.   

Macro Update: As per Stats NZ, the retail sales were down in most of the regions throughout the country. The sales in the South Island rose 0.2% ($12.0 million) to $7.6 Bn and sales in the North Island decreased by 0.3% (or $67.3 Mn) to $22.7 Bn. In 10 of the last 12 quarters, the retail sales growth has been stronger in the South Island compared to the North Island. Notably, 12 of 16 regions witnessed reduced retail sales values in the June 2025 quarter as compared to the March 2025 quarter, post adjusting the seasonal effects.   

Top Market Movers: Among top gainers, TruScreen Group Limited (NZX: TRU) witnessed a rise of 11.76% to end at $0.019 per share. On the other hand, Pacific Edge Limited (NZX: PEB) declined by 5.59%.    

Commodity Update: The dollar and U.S. Treasuries weakened Tuesday after President Trump’s unprecedented dismissal of Fed Governor Lisa Cook, raising concerns over central bank independence. The move pressured the dollar against the yen and euro. Gold rose 0.16% to $3,422.90, silver slipped 0.01% to $38.70, copper gained 0.70% to $9,848.35, and Brent crude fell 0.44% to $67.92. Oil eased as markets weighed U.S. sanctions on Russia against Ukraine conflict risks and rate-cut hopes.  

Source: Trading View, Analysis: Kalkine Group  

After beginning a short-term rally in April 2025, the S&P/NZX 50 index has recently revisited its 2024 peak at 13,270. Despite a brief pullback, the index continues to register higher highs and higher lows, signaling that the uptrend is still intact. A decisive break above this resistance would strengthen bullish momentum and potentially pave the way for a test of the all-time high at 13,636. On the downside, immediate support lies at 12,750, with a breach of this level serving as an early warning signal. Meanwhile, the 14-day Relative Strength Index (RSI) is hovering around the neutral zone, reflecting balanced market sentiment.  

Our Stance: It could be said that selling in the utilities sector somewhat impacted the broader NZ market on 26 August. While the markets were affected by the recent comments from the US Federal Reserve Chair, the investors are required to also focus on the corporate earnings and the developments around trade policies. Furthermore, the macroeconomic data points might also influence the broader equities. The data about initial jobless claims is expected to be released on 28th August.