NZ Market Gains on Strong Investor Confidence

index Update: On 7th May, the broader NZ market ended in green with strong buying witnessed in the IT sector, with S&P/NZX 50 Index rising by 0.95% to end at 13,270.610 and S&P/NZX 20 Index increasing by 1.03%. On the same day, S&P/NZX 10 Index rose by 1.17%. Notably, S&P/NZX All Information Technology encountered an increase of 3.48%. Also, S&P/NZX All Financials rose by 3.20%.   

Macro Update: RBNZ recently released Financial Stability Report (May 2026). The banking sector remains well positioned to support customers and continue lending activity, even if economic conditions deteriorate. Banks also maintain strong funding positions, supported by high deposit levels, giving them flexibility to manage heightened Volatility in offshore funding markets.  

Market Movers: Among top gainers, Locate Technologies Limited (NZX: LOC) witnessed a rise of 25.00% to $0.035 per share. On the other hand, Black Pearl Group Limited (NZX: BPG) declined by 4.64%.   

Commodity Update: Gold prices moved higher in Asian trading on Thursday after gaining nearly 3% in the previous session, supported by a weaker U.S. dollar and easing Inflation concerns tied to hopes of a potential U.S.-Iran peace agreement. Gold rose 0.41% to USD 4,714.40 per ounce, while silver advanced 1.32% to USD 78.30. Copper declined 0.43% to USD 13,356.90. Meanwhile, Brent Crude oil rebounded 0.90% to USD 102.15 per barrel after the previous session’s sharp decline.  

Source: Charts by TradingView, Analysis: Kalkine Group   

In the latest Trading session, the S&P/NZX 50 Index extended its rebound from the recent trough, advancing 125.42 points, or 0.95%, to finish at 13,270.60. From a technical standpoint, the index has broken above the short-term descending Trendline formed since February 2026, signalling an improvement in near-term market sentiment. Nevertheless, despite the recent recovery, the broader downtrend that began from the January 2026 peak at 13,757.71 remains intact, as the index continues to trade below the key resistance level represented by the mid-March high at 13,339.06. Immediate support is located at 12,689; a decisive decline below this level would strengthen the case for a continuation of the prevailing bearish trend. On the other hand, a sustained breakout above 13,339.06, supported by stronger trading Volume, would be necessary to negate the bearish outlook and suggest the possibility of a trend Reversal.  

Our Stance: As of now, the US markets are gaining on improved investor sentiment amid easing geopolitical concerns and strong corporate Earnings, particularly from technology and AI-related companies. Stable economic data might further help the market confidence. Coming to NZ, the markets trended higher amid improving global risk sentiment and optimism around easing geopolitical tensions. Investor confidence was also supported by resilient domestic economic indicators and stable financial sector conditions.