NZ Market Ends Lower: A Quick Look

Index Update: On 18th December, the broader NZ market closed the trading session lower amidst selling in the consumer staples sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.29% to end at 13,256.770 and S&P/NZX 20 Index fell by 0.35% to close at 7,537.390. Also, S&P/NZX 10 Index encountered a fall of 0.43% to close at 12,590.320. Notably, some selling momentum was witnessed in the consumer staples sector and S&P/NZX All Consumer Staples fell by 1.54%.     

Macro Update: As per Stats NZ, NZ’s GDP increased 1.1% in the September 2025 quarter after the 1.0% decline in the quarter ended June 2025. The GDP increased in 3 of the previous 4 quarters but declined 0.5% over the year to September 2025 as compared to the year ended September 2024. The 1.1% increase in economic activity in the September 2025 quarter was broad-based and there were increases in 14 out of 16 industries.   

Market Movers: Among top gainers, TruScreen Group Limited (NZX: TRU) witnessed an increase of 6.25% to end at $0.017 per share. On the other hand, Blis Technologies Limited (NZX: BLT) fell by 5.56%.   

Commodity Update: The U.S. dollar remained firm against major peers on Thursday as investors positioned ahead of central bank decisions in the UK, Europe, and Japan. Precious metals weakened, with gold slipping 0.34% to USD 4,364.00, silver down 0.54% to USD 66.54, and copper easing 0.28% to USD 11,696.00. Meanwhile, Brent crude jumped 1.30% to USD 59.68 after U.S. sanctions tightened on Venezuelan oil flows.  

Source: Trading View, Analysis: Kalkine Group  

In the most recent session, the S&P/NZX 50 Index extended its decline, shedding 39.13 points, or 0.29%, to close at 13,256.78. Although the market is undergoing a pullback from its record high, the index remains positioned above an important support zone associated with the 2024 peak. From a technical perspective, the short-term structure continues to appear constructive, supported by a sustained sequence of higher highs and higher lows, with prices holding comfortably above key technical levels. As long as this major support area remains intact, the broader uptrend that commenced in October 2023 is expected to persist. Immediate support is seen near 13,270, and holding above this threshold is important to preserve bullish momentum and pave the way for a renewed test of the all-time high. However, a clear break below 13,270 would indicate a deeper corrective phase, potentially opening the door for a pullback toward the 13,000 region before the primary uptrend reasserts itself.  

Our Stance: It seems that the selling in the consumer staples sector somewhat impacted the broader NZ market on 18 December. As of now, the sentiments of US investors are expected to be impacted by the economic releases which can influence the US Fed’s decision about the rate cuts. Also, the global momentum is expected to influence the outlook for the broader NZ economy. In the release dated 26 November, RBNZ stated that global economic growth benefited from robust AI-related investment. However, it is anticipated to slow in 2026 as trade barriers impact the activity.