Image Source : Krish Capital Pty Ltd

Index Update: On 22 August 2025, the NZ market ended significantly lower amid broad-based selling momentum. On the same day, the S&P/NZX 50 Index fell 1.15% to 13,042.760, and the S&P/NZX 20 Index declined 1.12% to 7,736.910. Notably, the S&P/NZX 10 Index dropped 1.30% to 12,749.930. The S&P/NZX All Consumer Discretionary Index experienced a sharp decline of 8.81%, closing at 645.300.  

Macro Update: The New Zealand dollar fell to $0.58, its lowest since April 11, after the RBNZ cut the cash rate to 3.0% and signaled further easing. Markets now price in at least two more cuts this year. The kiwi is down nearly 2% for the week, marking a second consecutive weekly decline.  

Top Market Movers: Among top gainers, Fonterra Co-operative Group Limited (NZX: FCG) witnessed a rise of 19.52% to end at $6.00 per share. On the other hand,  SkyCity Entertainment Group Limited (NZX: SKC) declined by 21.98%.   

Commodity Update: The U.S. dollar stayed firm on Friday, on track for a strong weekly close ahead of Fed Chair Jerome Powell’s Jackson Hole speech that may shape rate outlook. Gold slipped 0.15% to $3,376.60, silver edged up 0.03% to $38.09, and copper eased 0.02% to $9,731.55. Brent crude fell 0.20% to $67.51 but was still set for weekly gains as stalled Russia-Ukraine peace talks heightened supply concerns.  

Source: Trading View, Analysis: Kalkine Group  

Following a period of consolidation that succeeded the sustained rally beginning in October 2023, the S&P/NZX 50 index has recently moved above its ascending trendline, signaling the potential resumption of its prior upward trajectory. In the short term, a breakout above the recent minor high at 12,983 would likely provide further momentum, positioning the index to retest the 2024 peak at 13,270. A confirmed move through this resistance level would reinforce bullish sentiment and could set the stage for a challenge of the historical high at 13,636. Furthermore, the 14-day Relative Strength Index (RSI) is trading above its midpoint, underscoring strengthening investor confidence in the near term.  

Our Stance: The NZ market faced broad-based selling on 22 August 2025, with the S&P/NZX 50 falling 1.15% amid RBNZ rate cuts and a weaker kiwi. Despite short-term declines, technical signals suggest potential upside if the index breaks 12,983, supported by improving RSI and stabilizing commodity trends, indicating cautious near-term recovery. 

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