NZ Market Ends Marginally Lower

Source: Krish Capital Pty Ltd

Index Update: On 6^th October 2025, the NZ market ended the trading session marginally lower amidst selling in the communications services sector. On the same day, S&P/NZX 50 Index witnessed a fall of 0.18% to end at 13,489.240 and S&P/NZX 20 Index declined by 0.25% to 7,737.420. Also, S&P/NZX 10 Index fell by 0.47%. Notably, S&P/NZX All Communications Services encountered a decline of 0.88% to close at 2,345.450. 

Macro Update: As per the FEU dated 25 September 2025, the annual current account deficit narrowed to 3.7% of GDP in the quarter ended June, from the revised 4.2% of GDP in the March quarter, and down from 5.7% when it was initially published. Notably, the large change in March data demonstrated significant upward revisions to overseas investment income inflows as well as downward revisions to the low value imports.

Top Market Movers: Among top gainers, Chatham Rock Phosphate Limited (NZX: CRP) witnessed a rise of 9.23% to end at $0.071 per share. On the other hand, Blis Technologies Limited (NZX: BLT) declined by 6.25%.

Commodity Update: The yen slumped sharply against the U.S. dollar, marking its biggest drop in five months after Sanae Takaichi’s LDP leadership victory signalled a tilt toward expansionary fiscal policy, challenging the Bank of Japan. Gold rose 0.95% to $3,946.10, silver gained 0.42% to $48.16, and copper edged up 0.26% to $10,740.90. Brent crude climbed 1.01% to $65.16 as OPEC+ opted for a smaller-than-expected output increase.

Source: Trading View, Analysis: Kalkine Group

After a short-term correction within a broader uptrend characterized by a consistent sequence of higher highs and higher lows, the S&P/NZX 50 index has recently broken above its 2024 peak at 13,270. This breakout provides confirmation that the underlying bullish structure remains intact and could act as a catalyst for renewed upward momentum. From a technical perspective, this decisive breakout opens the door for a potential retest of the all-time high at 13,636. If the index can sustain its position above the former resistance at 13,270, this level may now serve as a strong support base, adding further credibility to the positive outlook. Additionally, the momentum indicator 14-day Relative Strength Index (RSI) is heading north from its midpoint, providing further support for the previous view.

Our Stance: It could be said that selling in the communications services sector somewhat impacted the broader NZ market on 6^th October. While the uncertainty related to the US government shutdown still prevails, the broader market continues to show momentum. Amidst the investors’ focus on the interest rate decision by the US Fed, the key releases have been delayed due to the federal government shutdown. As a result, the investors are required to keep a close watch on the broader market momentum.