NZ Market Ends Marginally Lower: A Quick Look

Image Source : Krish Capital Pty Ltd

Index Update: On 18th June 2025, the broader NZ market ended in red amidst decline in utilities sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.10% to end at 12,627.320 and S&P/NZX 20 Index fell by 0.20% to 7,437.050. Also, S&P/NZX 10 Index declined by 0.29% to 12,468.420. Notably, significant selling was witnessed in the utilities sector and S&P/NZX All Utilities declined 1.48%. However, S&P/NZX All Information Technology rose by 2.39%.   

Macro Update: As per Stats NZ, NZ’s seasonally adjusted current account deficit narrowed by $53 Mn to $5.5 Bn during the March 2025 quarter. The value of NZ goods exports witnessed a rise in the March 2025 quarter. Notably, higher export values were partly mitigated by rises in goods imports. In the March 2025 quarter, foreign investors were able to earn more in dividends and interest from their NZ investments as compared to NZ investors from their investments overseas.  

Top Market Movers: Among top gainers, New Talisman Gold Mines Limited (NZX: NTL) rose by 8.57% to $0.076 per share. On the other hand, General Capital Limited (NZX: GEN) declined by 6.35%.   

Commodity Update: The U.S. dollar remained firm against major currencies on Wednesday, supported by safe-haven demand amid rising tensions between Israel and Iran. Investors remained cautious ahead of the Federal Reserve's interest rate decision. Meanwhile, gold edged down 0.15% to $3,401.45, silver rose 0.09% to $37.24, and copper gained 0.16% to $9,693.55. Brent crude climbed 0.25% to $76.64, extending gains on supply concerns from the Middle East conflict.  

Source: Trading View, Analysis: Kalkine Group   

Following a sustained upward rally that began in October 2023, the S&P/NZX 50 index appears to be transitioning into a consolidation phase. This is evidenced by the formation of a lower high and a higher low on the chart - typically a technical signal that the market may be entering a trading range. Unless there is a clear breakout above the previous resistance level at 12,881 points or a breakdown below the earlier support level at 12,254 points, this sideways movement is expected to persist in the near term. Additionally, the 14-day Relative Strength Index (RSI) is currently hovering around its midpoint, which reinforces the previous outlook. As a result, investors may need to wait for a decisive move in either direction before gaining greater clarity on the market’s next trend.   

Our Stance: It could be said that selling in the utilities sector somewhat impacted the broader NZ market on 18 June 2025. It seems that the current investment environment reflects a broader pattern of investor caution amidst the geopolitical worries and macroeconomic uncertainty. The investors are required to track developments happening in Middle East and other economic indicators. Amidst the complex investing environment, the investors need to be cautious with their equity investments.