NZ Market Falls Amid Global Tensions and Financial Weakness

Index Update: On 12th March, the broader New Zealand market closed lower amid selling pressure in the financial sector. The S&P/NZX 50 Index declined 0.71% to 13,199.29, while the S&P/NZX 20 Index fell 0.81% to 7,470.47 and the S&P/NZX 10 Index dropped 0.82%. The S&P/NZX All Financials Index also decreased 1.13% to 1,604.06.  

Macro Update: The New Zealand dollar weakened to around $0.589, marking a third day of declines amid heightened global risk aversion due to Middle East tensions and rising oil prices. However, expectations of RBNZ monetary tightening, with markets pricing in a 25-bps rate hike in September and potential tightening in December, limited further losses. 

Market Movers: Among top gainers, Move Logistics Group Ltd (NZX: MOV) witnessed a rise of 6.67% to end at $0.240 per share. On the other hand, Metro Performance Glass Limited (NZX: MPG) declined by 11.68%.   

Commodity Update: The U.S. dollar remained near its strongest level of the year on Thursday as rising crude oil prices heightened global inflation concerns and strengthened expectations of tighter monetary policy from central banks. Commodity markets showed mixed performance, with gold declining 0.38% to USD 5,158.30, silver dropping 0.65% to USD 85.00, and copper slipping 0.35% to USD 12,966.55. Meanwhile, Brent crude surged 5.69% to USD 97.67 after reports that Iranian explosive boats struck two fuel tankers.  

Source: Charts by TradingView, Analysis: Kalkine Group  

n the most recent session, the S&P/NZX 50 Index pulled back following the previous day’s rebound, declining 93.83 points, or 0.71%, to finish at 13,199.30. Nevertheless, the broader technical structure remains largely intact. Price action continues to trace a sequence of lower highs and higher lows, suggesting the potential formation of a symmetrical triangle, typically interpreted as a consolidation pattern. Key technical levels remain the previous peak at 13,757.71, which now acts as resistance, and the prior trough at 13,022.30, providing support and defining the boundaries of the current trading range. Meanwhile, the Relative Strength Index (RSI) has eased back toward its midpoint, indicating that momentum has normalized to a neutral reading, reinforcing the view that the benchmark may continue to consolidate in the near term.  

Our Stance: The S&P/NZX 50 Index continues to trade within a consolidation range as the broader market reflects cautious sentiment amid global geopolitical tensions and mixed commodity movements. While recent declines highlight short-term volatility, the index remains supported by stable technical levels. Continued consolidation within the current range may persist, with market direction likely influenced by macro developments and investor risk appetite.