NZ Market Ends Lower as Global Uncertainty Drives Profit Taking

Index Update: On 10th April, the broader NZ market closed in red amidst selling in the IT sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.70% to end at 13,181.440 and S&P/NZX 10 Index fell 0.88% to 12,828.640. Also, S&P/NZX 20 Index encountered a fall of 0.70%. Notably, IT sector witnessed selling pressure, with S&P/NZX All Information Technology falling 2.37%.   

Macro Update: As per FEU dated 26 March 2026, the New Zealand economy is beginning to feel the early effects of the Middle East conflict. GDP growth remained modest in the December 2025 quarter, while other pre-conflict indicators were generally positive. The OECD has cautioned that the ongoing conflict could challenge global economic resilience.  

Market Movers: Among top gainers, Move Logistics Group Ltd (NZX: MOV) witnessed a rise of 10.00% to end at $0.22 per share. Locate Technologies Limited (NZX: LOC) declined by 36.84% to close at $0.024 per share.  

Commodity Update: On Friday, the U.S. dollar was set for its biggest weekly decline since January as global currencies strengthened on hopes that the Gulf ceasefire would hold and oil shipments would resume. However, caution remained ahead of key talks scheduled this weekend. Gold declined 0.96% to USD 4,771.30 per ounce, while silver dropped 1.11% to USD 75.58. Copper edged up 0.09% to USD 12,707.00. Brent crude rose 0.87% to USD 96.75 amid continued concerns over Saudi energy infrastructure and the Strait of Hormuz.  

Source: Charts by TradingView, Analysis: Kalkine Group   

In the latest session, the S&P/NZX 50 Index pulled back from its prior rebound, declining 92.37 points, or 0.70%. From a technical standpoint, this retracement extends the negative signal indicated by the two preceding long upper-shadow candles. However, the index continues to trade above its immediate support at 13,073.68, suggesting that the short-term trend remains constructive. A decisive and sustained breakout above 13,339.06, corresponding to the mid-March peak, and ideally accompanied by increased trading volume, would be required to invalidate the current bearish bias and signal a potential trend reversal. Conversely, a breakdown below 13,073.68 could see the index resume its broader downtrend that has been in place since the peak in January 2026.  

Our Stance: As of now, the rally in the US stocks was driven by easing geopolitical fears, particularly hopes of de-escalation in the Middle East conflict. Sentiment was further supported by steady buying across major sectors despite ongoing macro uncertainty. Coming to NZ, the investors turned cautious after recent gains. Weak global cues, geopolitical uncertainty, and declines in key heavyweight stocks weighed on sentiment, prompting profit-taking.