Index Update: On 18th February, the broader NZ market witnessed strong buying momentum as S&P/NZX 50 Index witnessed a rise of 1.65% to end at 13,247.020 and S&P/NZX 20 Index rose by 1.58% to 7,537.850. On the same day, S&P/NZX 10 Index increased by 2.25% to end at 12,751.780. Notably, strong buying was encountered in the healthcare sector, with S&P/NZX All Health Care rising by 2.73% to 2,893.330.     

Macro Update: On February 18, The Committee decided to hold the OCR at 2.25%. Th annual consumers price inflation was marginally above the Committee’s 1%- 3% target band at 2025 end. RBNZ also added that the economy is at an early stage in its recovery. In response to previous cuts, economic growth continues to broaden throughout the sectors of the economy.   

Market Movers: Among top gainers, Blis Technologies Limited (NZX: BLT) witnessed a rise of 6.25% to end at $0.017 per share. On the other hand, WasteCo Group Limited (NZX: WCO) declined by 8.33%.   

Commodity Update: The U.S. dollar steadied on Wednesday as geopolitical concerns kept investors cautious ahead of the Federal Reserve meeting minutes, which may offer clarity on the timing of future rate adjustments. Precious and base metals advanced, with gold rising 0.54% to USD 4,933.10, silver up 0.68% to USD 74.04, and copper gaining 0.75% to USD 12,687.40. Brent crude edged 0.04% lower to USD 67.39 amid easing supply concerns.  

Analysis: Kalkine Group  

The S&P/NZX 50 Index closed at 13,247.02, despite a volatile session that reflected ongoing selling pressure and cautious investor sentiment. From a technical standpoint, the index remains vulnerable, with a decisive break below the key support zone likely to trigger renewed downside momentum. The next major support is seen near the prior trough around 12,900. On the upside, any rebound attempts are expected to encounter resistance near 13,450. Momentum indicators remain weak, with the 14-period RSI positioned in bearish territory, reinforcing the prevailing negative bias. Unless lost support levels are reclaimed, the near-term outlook remains tilted to the downside, with risks of further consolidation or corrective weakness.  

Our Stance: As of now, it seems that global investors are looking for data points which can help provide a better view about inflation and monetary policy. Apart from this, the earnings data can also influence the investors’ sentiments as well as broader market momentum. It could be said that the strong positive momentum in NZ equity markets was mainly supported by RBNZ’s decision to leave the rates unchanged, which was as per market expectations. The policymakers remain confident about the fact that inflation would ease.  

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