NZ Market Ends Slightly in Red

Index Update: On 5th February, the broader NZ market closed slightly lower amidst decline in the materials sector. On the same day, S&P/NZX 50 Index witnessed a fall of 0.17% to end at 13,444.020 and S&P/NZX 20 Index fell by 0.16% to 7,657.180. Also, S&P/NZX 10 Index encountered a decline of 0.17% to 12,906.240. Notably, strong selling was witnessed in the materials sector, and S&P/NZX All Materials fell by 2.47%.     

Macro Update: As per Stats NZ, seasonally adjusted industry and household greenhouse gas emissions in Aotearoa NZ fell 1.1% (209 kilotonnes) in the quarter ended September 2025. During the quarter, the industry emissions (excluding households) fell 1.3% (229 kilotonnes). Comparatively, GDP rose 1.1% in the same period. Notably, total household emissions declined 0.6% (13 kilotonnes).   

Market Movers: Among top gainers, TruScreen Group Limited (NZX: TRU) witnessed a rise of 5.88% to end at $0.018 per share. Locate Technologies Limited (NZX: LOC) declined by 7.50%.   

Commodity Update: The U.S. dollar steadied in early Asian trade as markets awaited interest rate decisions from the European Central Bank and the Bank of England, both widely expected to keep policy unchanged. Commodities weakened, with gold slipping 1.76% to USD 4,864.70, silver tumbling 9.56% to USD 76.33, and copper easing 1.35% to USD 12,885.50. Brent crude fell 1.40% to USD 68.47 after the U.S. and Iran agreed to hold talks in Oman, easing geopolitical supply concerns.  

Source: Trading View, Analysis: Kalkine Group  

In the latest trading session, the S&P/NZX 50 Index continued to exhibit sideways price action, closing near its opening level and edging down just 23.28 points, or 0.17%, to finish at 13,444.01. This behavior indicates that the benchmark remains in a consolidation phase, capped by resistance near its all-time high and supported by solid demand around the December 2024 peak, leaving the near-term outlook broadly neutral. Importantly, the index is still trading above its prior swing low, suggesting that the underlying bullish trend remains intact despite recent volatility. From a technical standpoint, momentum has moderated, though buyers continue to emerge near key support areas. Looking ahead, immediate resistance is located at the recent high of 13,757.71; a clear break above this level would reinforce bullish sentiment and could open the path toward the psychological 14,000 threshold. On the downside, initial support is clustered around the 13,250 region, where sustained holding would help preserve the constructive technical structure and limit the risk of a deeper pullback.  

Our Stance: While the earnings from the US technology companies continue, there are concerns in the investors’ minds about the downturn in the broader technology stocks. Furthermore, the investors’ risk appetite is expected to be influenced by the volatile commodity markets and fluctuations in the gold and silver prices. Coming to NZ, global AI fears are expected to impact NZ equities as well. However, positive macro-economic news might provide some relief. On February 16, Stats NZ would be releasing the data about electronic card transactions (January 2026).