NZ Market Ends Significantly Higher Amidst Buying in Healthcare Sector

Image Source : Krish Capital Pty Ltd

Index Update: On 30th May 2025, the broader NZ market closed higher as healthcare sector witnessed strong buying. On the same day, S&P/NZX 50 Index witnessed a rise of 1.12% to end the session at 12,418.890 and S&P/NZX 20 Index rose by 0.84% to close at 7,316.490. Also, S&P/NZX 10 Index witnessed  a rise of 1.39% to end at 12,271.490. Notably, S&P/NZX All Health Care witnessed a strong rise of  3.15% to end at 3,022.260.   

Macro Update: There were 2,418 new homes consented in April 2025, reflecting a decline of 17% as compared to April 2024, as per Stats NZ. Out of the 2,418 new homes consented, there were 1,148 stand-alone houses consented (a decline of 15% as compared to April 2024) and 1,270 multi-unit homes consented (down 19%). The seasonally adjusted number of new homes consented in April 2025 declined by 16% as compared to March 2025.    

Top Market Movers: Among top gainers, New Talisman Gold Mines Limited (NZX: NTL) witnessed a rise of 11.94% to end at $0.0750 per share. On the other hand, NZ King Salmon Investments Limited (NZX: NZK) declined by 6.38% to $0.22 per share.  

Commodity Update: The U.S. dollar weakened on Friday, marking its fifth consecutive monthly decline amid trade and fiscal uncertainty. Investors turned cautious ahead of a key inflation report. Gold slipped 0.56% to $3,323.65, silver declined 0.79% to $33.16, and copper edged down 0.16% to $9,557.35. Meanwhile, Brent crude rose 0.41% to $63.89 as markets reacted to shifting U.S. tariffs and a possible OPEC+ output increase.  

Source: Trading View, Analysis: Kalkine Group   

Following a recent upward rally, the S&P/NZX 50 index encountered resistance as it approached an important ascending trendline that has been in place since October 2023. This trendline, which had previously supported the broader bullish trend, acted as a turning point, prompting a reversal in the index’s direction. In the sessions that followed, the index penetrated a notable support level near 12,400 points - previously established as the peak in March 2025 - alongside a breach of the trend following indicator 50-day SMA, suggesting a shift toward stronger downward momentum. Moreover, the 14-day Relative Strength Index (RSI) is trading below its midpoint in the latest trading session, indicating a negative market sentiment in the short-term.

Our Stance: It could be said that buying in healthcare sector somewhat supported the broader NZ market on 30th May 2025. RBNZ recently stated that the changes to US trade policy and the responses of other countries resulted in global economic uncertainty. The outlook for output, inflation, and interest rates remains subject to significant uncertainty. Moving forward, the investors need to track the macro-economic news. On 2nd June 2025, the data about ISM manufacturing and construction spending is expected to be released.