NZ Market Witnesses Buying 

Index Update: On 14th January 2025, the broader NZ market witnessed buying momentum as materials sector ended higher. On the same day, S&P/NZX 50 Index encountered a rise of 0.44% to end the session at 12,884.380 and S&P/NZX 10 Index rose by 0.42%. Also, S&P/NZX All Materials increased by 1.44% to close at 1,086.740. However, S&P/NZX All Information Technology ended in red, witnessing a decline of 0.92%.   

Macro Update: As per Stats NZ, as at 31 December 2024, the estimated number of private dwellings stood at 2,110,200 and households at 2,027,700. Also, SOPI (December 2024) stated that food and fibre producers have placed themselves well to navigate challenges. Their resilience as well as commitment to producing high-quality food and fibre continues to fuel record export revenue and power NZ’s economy and prosperity.  

Top Market Movers: Among top gainers, Greenfern Industries Limited (NZX: GFI) witnessed a rise of 20.83% to end the session at $0.029 per share. On the other hand, Metro Performance Glass Limited (NZX: MPG) fell by 8.06% to end at $0.057 per share. 

Commodity Update: The U.S. dollar remained near a two-year high on Tuesday as traders reduced expectations of rate cuts in 2025 following strong economic data. Investor concerns about the UK's fiscal health pressured the pound. With President-elect Donald Trump poised to return to office next week, market focus turned to his policies, which are expected to stimulate growth but could increase inflationary pressures. In commodities, gold rose 0.26% to $2,684.20, while silver dropped 0.20%. Copper gained 0.37%, reaching $9,135.50. Brent crude slipped 0.27%, closing at $80.69 amid increased demand from Chinese and Indian buyers due to tougher U.S. sanctions on Russian oil. 

Source: Trading View, Analysis: Kalkine Group   

In July 2024, the S&P/NZX 50 index surpassed both the neckline of a Head and Shoulders pattern on the daily chart and a key resistance level marked by its 2023 high. This breakout indicates that the uptrend, which started in November 2023, is likely to persist and could push the index toward its historical peak from 2021. Since the break-out, the index has been forming higher highs and higher lows and bouncing off a short-term upward trendline established since June 2024 in the last trading session, reinforcing the prevailing uptrend. Meanwhile, the 14-day Relative Strength Index (RSI) is trading near its midpoint, reflecting neutral short-term market sentiment.  

Our Stance: The buying in the materials sector somewhat supported broader NZ market on 14th January 2025. While the hopes of rate cuts have been diminishing, the market players are actively assessing macro-economic datapoints which can provide an idea about the health of US economy. Consumer price index data is expected to be released on 15th January, which can also affect the sentiments of investors. Overall, a mixed economic landscape has been providing opportunities and risks for the market players.  

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