Image Souce: Krish Capital Pty Ltd

Index Update: On 6th November 2024, the broader NZ market closed the session marginally lower amidst selling in the consumer staples sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.07% to end the session at 12,649.170 and S&P/NZX 20 Index fell by 0.08% to close at 7,642.070. Also, S&P/NZX 10 Index encountered a decline of 0.19%. S&P/NZX All Consumer Staples witnessed a fall of 1.76% to 2,530.220 and S&P/NZX All Utilities fell by 1.28%.  

Macro Update: Stats NZ reported that, in the September 2024 quarter, unemployment rate stood at 4.8% and employment rate was 67.8%. Notably, annual wage inflation stood at 3.8% and average ordinary time hourly earnings were $41.98. The unemployment rate has increased over the previous 2 years, rising from 3.2% in the September 2022 quarter to 4.8% this quarter.  

Top Market Movers: Among top gainers, Blis Technologies Limited (NZX: BLT) witnessed a rise of 6.25% to end the session at $0.017 per share and TruScreen Group Limited (NZX: TRU) increased by 5.26%. On the other hand, Being AI Limited (NZX: BAI) fell by 14.66%.  

Commodity Update: The U.S. dollar surged broadly on Wednesday, fueled by early exit polls suggesting a tight lead for Republican Donald Trump in the presidential race. Commodities saw mixed performance: gold increased 0.02% to $2,750.50/oz, silver dropped 0.59% to $32.58, and copper fell 0.83% to $9,655.50/ton. Brent crude slipped 0.46% to $75.18 per barrel after data showed a larger-than-expected U.S. inventory build, while concerns over potential Gulf of Mexico supply disruptions remained. Market focus shifted to the presidential election outcome and the upcoming FOMC rate decision, which could influence broader economic trends. 

 A graph showing the stock market

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Source: Trading View, Analysis: Kalkine Group  

In July 2024, the S&P/NZX 50 index surpassed both the neckline of a Head and Shoulders pattern on the daily chart and a key resistance level marked by its 2023 high. This breakout indicates that the uptrend, which started in November 2023, is likely to persist and could push the index toward its historical peak from 2021. While currently experiencing a minor pullback, the index continues to form higher highs and higher lows, reinforcing the ongoing uptrend. Furthermore, the 14-day Relative Strength Index (RSI) is oscillating between 40 and 60, indicating a neutral short-term market sentiment. 

Our Stance: It could be said that the broader NZ market was impacted by the selling in consumer staples sector. Moving forward, the earnings results and the US Fed meeting are expected to decide the course of broader equities. Investors are required to closely track the US Fed meeting, which can provide insights into the health of the US economy. On 12th November, Stats NZ would be releasing data about electronic card transactions (October 2024).  

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