Image Source : Krish Capital Pty Ltd

Index Update: On 13th February 2025, the broader NZ market closed the trading session on a flat note, with S&P/NZX 50 Index declining by just 0.06% to end the session at 12,905.980 and S&P/NZX 20 Index ending at 7,745.550. On the same day, S&P/NZX 10 Index encountered an increase of 0.11% to close the session at 13,002.420. S&P/NZX All Information Technology witnessed a decline of 1.62% to 2,978.010 and S&P/NZX All Materials increased by 3.37% to 1,137.960.  

Macro Update: Stats NZ released data about electronic card transactions (January 2025). In January 2025 month, the spending in retail industries fell 1.6% (or $103 Mn) and spending in the core retail industries declined 1.5% (or $86 Mn) as compared to December 2024. By the retail spending category, durables declined by $42 Mn (or 2.6%), consumables fell by $20 Mn (or 0.7%) and apparel declined $3.3 Mn (or 1.0%).  

Top Market Movers: Among top gainers, Black Pearl Group Limited (NZX: BPG) witnessed a rise of 28.36% to close at $0.86 per share. On the same day, Move Logistics Group Ltd (NZX: MOV) declined by 8.33% to $0.22 per share. 

Commodity Update: The U.S. dollar remained near a one-week high against the Japanese yen on Thursday, following a hotter-than-expected consumer price report. Meanwhile, the euro received support as news broke that Washington plans to initiate talks with Russia to end the ongoing war in Ukraine. U.S. President Donald Trump also hinted at imposing reciprocal tariffs on countries charging duties on U.S. imports, fueling concerns of an escalating global trade war that could further drive-up U.S. inflation. Commodities saw mixed results: gold rose 0.19% to $2934.20, while silver and copper slipped 0.16% and 0.23%, respectively. Brent oil dropped 0.73% to $74.63 amid expectations of easing sanctions if a peace deal is reached. 

A graph of stock market Description automatically generated with medium confidence

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. Despite the ongoing correction, the index continues to establish higher highs and higher lows, confirming the prevailing uptrend. Meanwhile, the 14-day Relative Strength Index (RSI) is trading near its midpoint, reflecting neutral market sentiment in the short-term.   

Our Stance: It could be said that the investors’ sentiments are being impacted by the US inflation data released on 12th February. The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.5% on a seasonally adjusted basis in January, after increasing 0.4% in December, as per the US Bureau of Labor Statistics. Over the last 12 months, all items index rose by 3.0% before seasonal adjustment. After the numbers, investors need to watch the stance of the US Federal Reserve on the future rate cuts. 

You Are a Few Steps Away From Gaining Smart Market Insights

Sign up/Login Now and Gain Access to Exciting Opportunities from Investor and Resource Space!