NZ Market Halts its Rally as Broader Market Witnesses Sell-off

Index Update: On 20th February, the NZ market ended lower amidst broad-based selling momentum. On the same day, S&P/NZX 50 Index witnessed a decline of 1.01% to end at 13,308.520 and S&P/NZX 20 Index fell by 1.09% to 7,572.980. Also, S&P/NZX 10 Index encountered a fall of 1.10%. Notably, strong selling was witnessed in the technology sector, with S&P/NZX All Information Technology falling by 2.31%. S&P/NZX All Utilities also declined by 1.98%.     

Macro Update: As per Stats NZ, imports of electrical and mechanical machinery and equipment amounted to $19.9 Bn in the year to January 2026. In the long term, there has been increase in the total value of electrical and mechanical machinery and equipment imports and the imports from China witnessed an annual rise of $837 Mn for the year to January 2026.   

Market Movers: Among top gainers, Accordant Group Limited (NZX: AGL) witnessed a rise of 10.34% to end at $0.32 per share. On the other hand, Savor Limited (NZX: SVR) declined by 6.67%.   

Commodity Update: The U.S. dollar headed for its strongest weekly gain since October, supported by upbeat economic data and a firmer Federal Reserve stance, while geopolitical tensions between Washington and Tehran kept investors cautious. Fresh data showed U.S. jobless claims fell more than expected, highlighting labour market resilience. Gold rose 0.33% to USD 5,014.10, silver gained 0.49% to USD 78.01, copper edged up 0.09%, and Brent crude climbed 0.30% to USD 71.87.  

Source: Charts by TradingView, Analysis: Kalkine Group  

The S&P/NZX 50 Index pulled back after two solid rebound sessions, shedding 135.69 points, or 1.01%, to finish at 13,308.51. Although the benchmark briefly pushed above the key resistance defined by the December 2024 high, it continues to trade below the rising trendline in place since April 2025. This technical configuration points to a potential near-term consolidation phase. Should consolidation develop, price action is likely to be contained within the most recent swing range, bounded by resistance at 13,375.71 and support at 13,020.24. Meanwhile, the 14-day RSI has recovered from oversold conditions and is now hovering around its neutral midpoint, reinforcing the consolidation outlook.  

Our Stance: As of now, it seems that the US equities have seen mixed trading with volatility, amidst pressure from geopolitical tensions and AI sector concerns. While there are expectations of the broader market participation beyond Big Tech, the overall sentiment remains cautious amid macro uncertainty. Coming to the NZ equities, the S&P/NZX 50 index has seen mixed performance as there remains volatility driven by global risk sentiment and profit-taking. The US interest rate expectations influence global monetary conditions and the NZ Dollar. Moving forward, the global momentum is expected to impact NZ equities as investor risk appetite drops and confidence is impacted.