NZ Market Ends Lower Amidst Selling in IT Sector

Index Update: On 17th October 2025, the broader NZ market closed the trading session in red amidst heavy selling in the IT sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.75% to end at 13,289.210 and S&P/NZX 20 Index fell by 0.67%. Also, S&P/NZX 10 Index encountered a fall of 1.00% to close at 12,648.280. Notably, heavy selling was witnessed in the technology sector and S&P/NZX All Information Technology declined by 7.30%.    

Macro Update: As per the FEU dated 9 October 2025, the employment seems to be stabilising but there remains still significant spare capacity in the broader labour market. As per the release, the filled jobs increased 0.2% in August, and the initially reported 0.2% increase in July was revised down to zero. Furthermore, the employment in goods sector rose 0.6% in August, marking the first monthly rise since September 2023.   

Market Movers: Among top gainers, Being AI Limited (NZX: BAI) witnessed a rise of 10.29% to end at $0.15 per share. On the other hand, EROAD Limited (NZX: ERD) declined by 34.72% to $1.88 per share.  

Commodity Update: The U.S. dollar weakened on Friday amid rising global trade tensions and signs of economic softness, boosting expectations of further Federal Reserve rate cuts. The dollar index is heading for its steepest weekly decline in nearly three months as the U.S. government shutdown delays key data releases. Gold rose 1.57% to USD 4,372.49 per ounce, silver edged up 0.02% to USD 53.29, copper slipped 0.62% to USD 10,571.75, and Brent crude eased 0.13% to USD 60.98 per barrel.  

Source: Trading View, Analysis: Kalkine Group  

Following a brief corrective phase within a well-established broader uptrend marked by a consistent pattern of higher highs and higher lows, the S&P/NZX 50 Index has recently staged a breakout above its 2024 peak at 13,270. This upward breach confirms the continuation of the prevailing bullish structure and signals the potential for renewed upside momentum. Technically, the breakout opens the way for a possible retest of the all-time high at 13,636. Importantly, the former resistance level at 13,270 has now transitioned into a key support zone, which could underpin the next leg of the advance. While the index is presently experiencing a modest pullback, its ability to hold above this newly established support suggests that the broader uptrend remains intact and the overall technical outlook continues positive.  

Our Stance: It could be said that significant sell-off in the IT sector somewhat impacted the broader NZ market on 17th October. While the earnings season continues to impact the broader US market, the investors are required to be cautious amidst the macro-economic worries. RBNZ recently stated that the construction activity is expected to recover from mid-2026 as demand for dwellings recovers as well as house price growth resumes.