NZ Market Witnesses Buying Momentum

Index Update: On 19th December, the NZ market ended higher amidst broad-based buying momentum. On the same day, S&P/NZX 50 Index witnessed an increase of 0.58% to end at 13,333.400 and S&P/NZX 20 Index rose by 0.63% to close at 7,584.890. Also, S&P/NZX 10 Index encountered a rise of 0.89% to 12,702.840. Notably, strong buying momentum was witnessed in the energy sector and S&P/NZX All Energy rose by 3.27%.       

Macro Update: As per Stats NZ, the fruit exports amounted to $6.1 Bn for the year to November 2025. Notably, this was the second time that fruit exports touched $6 billion. The value of fruit exports in the year to November 2025 rose $1.3 Bn (or 28%) as compared to November 2024. The increase in food exports was led by kiwifruit and apples.   

Market Movers: Among top gainers, EROAD Limited (NZX: ERD) witnessed an increase of 8.11% to end at $1.20 per share. Minerals Exploration Limited (NZX: MEX) encountered a decline of 14.29%.   

Commodity Update: The yen stayed near recent lows on Friday as traders awaited clarity on whether the Bank of Japan can sustain interest rate hikes into next year, while the euro edged lower after the central bank gave no signal on tightening. Precious metals weakened, with gold down 0.51% to USD 4,341.30, silver slipping 0.93% to USD 64.62, and copper marginally higher by 0.01% to USD 11,717.50. Brent crude fell 0.23% to USD 59.83, heading for a second straight weekly decline as Russia-Ukraine peace hopes offset Venezuelan supply concerns. 

Source: Trading View, Analysis: Kalkine Group  

Following its test of the key support zone aligned with the 2024 peak in the prior session, the S&P/NZX 50 Index staged a rebound in the latest trading session, rising 76.76 points, or 0.58%, to settle at 13,333.39. While the market continues to retrace from its record high, the index remains firmly above a critical support area linked to the 2024 high. Technically, the short-term outlook remains constructive, underpinned by an ongoing pattern of higher highs and higher lows, with price action holding comfortably above key technical levels. Provided this major support zone remains intact, the broader uptrend that began in October 2023 is likely to remain in place. Near-term support is located around 13,270, and sustained trading above this level is essential to maintain bullish momentum and set the stage for another attempt at the all-time high. Conversely, a decisive break below 13,270 would signal a deeper corrective phase, potentially exposing the index to a pullback toward the 13,000 area before the primary uptrend resumes.  

Our Stance: It could be said that strong buying momentum in the energy sector somewhat supported the broader NZ market on 19th December. While the AI trade continues to influence the broader market momentum in the US, the investors are required to be cautious heading into 2026 amidst increased macro-economic uncertainty and volatile currency and commodities markets. With respect to NZ, RBNZ (in the release dated 26 November) stated that economic conditions have been variable throughout different sectors and regions of the broader economy.