NZ Market Sees Broad-based Selling

Image Source : Krish Capital Pty Ltd

Index Update: On 12th August 2025, the broader NZ market closed lower amidst selling momentum in the IT sector. On the same day, S&P/NZX 50 Index witnessed a decline of 1.18% to end at 12,759.680 and S&P/NZX 20 Index declined by 1.37% to end at 7,472.560. Also, S&P/NZX 10 Index fell by 1.31% to 12,499.630. Notably, significant selling was witnessed in the technology sector and S&P/NZX All Information Technology declined by 3.70% to 2,790.010.   

Macro Update: According to the recent FEU, NZ inflation was 0.6% higher as compared to Australia, posting a 2.7% rise in the quarter ended June on an annual basis. Throughout most of the major CPI groupings, Australian inflation printed weaker as compared to NZ. Also, the monthly goods trade deficit widened in June, with imports ticking up, partly demonstrating large one-off items.    

Top Market Movers: Among top gainers, PaySauce Limited (NZX: PYS) witnessed a rise of 5.26% to end at $0.20 per share. On the other hand, Being AI Limited (NZX: BAI) fell by 11.11%.   

Commodity Update: The U.S. dollar held steady on Tuesday ahead of a key U.S. consumer inflation report that could influence Federal Reserve rate cut expectations. Gold eased 0.10% to $3,401.20, while silver rose 0.14% to $37.84 and copper gained 0.27% to $9,759.20. Brent crude added 0.39% to $66.89 as the U.S. and China extended a pause on higher tariffs, easing trade war concerns and supporting fuel demand in both economies.  

Source: Trading View, Analysis: Kalkine Group  

Following a consolidation phase that came after a sustained rally starting in October 2023, the S&P/NZX 50 index has recently attempted to rebound and re-test the ascending trendline from below, though this effort has not yet succeeded. In the short term, caution is warranted as the index has broken below a minor double top formation. Immediate support lies at 12,614 points, and a decisive break below this level could trigger a further decline toward the next support around 12,421. Conversely, a breakout above the 12,983 level would signal renewed bullish momentum and potentially pave the way for a move to fresh highs. Additionally, the 14-day Relative Strength Index (RSI) is hovering near its midpoint in the last trading session, reflecting a neutral market sentiment.  

Our Stance: It could be said that the selling in the technology sector somewhat impacted the broader NZ market on 12 August. While the easing U.S.–China trade tensions continue to support the market sentiments, investors need to be cautious about the volatile commodity markets. Moving forward, stability in the global conditions as well as favourable macro-economic data can support the global and NZ equities. Also, developments around corporate earnings are required to be tracked carefully.