Image Souce: Krish Capital Pty Ltd

Index Update: On 29th November 2024, the broader NZ market ended on the mixed note. The IT sector witnessed significant buying and industrials sector ended lower. On the same day, S&P/NZX 50 Index witnessed a marginal rise of 0.10% to end the session at 13,066.920. However, S&P/NZX 10 Index encountered a fall of 0.20%. S&P/NZX 20 Index declined by 0.14%. S&P/NZX All Information Technology rose by 2.76% and S&P/NZX All Industrials fell by 1.03%.  

Macro Update: In the year ended June 2024, the general government net operating deficit was $3.1 Bn, following a $6.7 billion deficit in the year ended June 2023, as per Stats NZ. The total operating income increased by 9.7% as compared with the year ended June 2023, led by increases in tax revenue. The total operating expenditure rose by 7.0% following the 3.4% increase in the year ended June 2023.  

Top Market Movers: Among top gainers, TruScreen Group Limited (NZX: TRU) witnessed a rise of 8.00% to NZ$0.0270 per share. On the other hand, Greenfern Industries Limited (NZX: GFI) declined by 12.50% to NZ$0.021 per share. 

Commodity Update:  The U.S. dollar weakened against most major currencies on Friday, with trading volumes light due to the Thanksgiving holiday. The British pound reached its highest level since November 20. In the commodities market, gold rose 0.74% to $2,681 per ounce, silver surged 1.30% to $31.08, and copper climbed 0.54% to $9,046.50 per ton. Brent crude saw a slight dip of 0.10%, settling at $73.21 per barrel, amid renewed concerns over supply risks as tensions between Israel and Hezbollah escalated. Investors also awaited an OPEC+ meeting for updates on production policies. 

A graph showing the price of a 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. Moreover, the index recently surpassed its previous peak, reinforcing the ongoing uptrend. Furthermore, the 14-day Relative Strength Index (RSI) is trading above its midpoint, indicating a positive short-term market sentiment. 

 
Our Stance: It could be said that the NZ equities ended the day on a mixed note. While this was the holiday-shortened week for the broader US markets, market players need to brace themselves for the next week. Over the next week, the global markets are anticipated to be influenced by the numerous macro-economic releases which are scheduled. On 2nd December, data about ISM manufacturing is expected to be released.  

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