Image Source : Krish Capital Pty Ltd

Index Update: On 17th December 2024, the broader NZ market closed significantly higher amidst robust buying in the industrials sector. On the same day, S&P/NZX 50 Index witnessed a rise of 0.91% to end the session at 12,914.300 and S&P/NZX 20 Index rose by 1.12% to close at 7,762.160. Also, S&P/NZX 10 Index increased by 0.95%. Also, S&P/NZX All Industrials encountered an increase of 1.81% to 2,242.220. However, S&P/NZX All Information Technology fell by 1.00%.  

Macro Update: As per Stats NZ, monthly food prices declined 0.1% in November 2024 as compared to October 2024. The largest contributor to the fall was vegetables, reflecting a fall of 7.9%. This was partly offset by an increase in fruit prices, up 4%. This was the 3rd consecutive month of price falls for vegetables, alongside rising prices for fruit. Overall, fruit and vegetable prices declined 2.9% in November 2024. Other items that contributed to the monthly fall included boxed chocolates, chocolate biscuits, and steak.  

Top Market Movers: Among top gainers, Metro Performance Glass Limited (NZX: MPG) witnessed a rise of 24.53% to end the session at $0.066 per share. On the other hand, Foley Wines Limited (NZX: FWL) fell by 13.33% to $0.52 per share. 

Commodity Update: The U.S. dollar remained stable on Tuesday as traders anticipated key central bank meetings this week, including a likely rate cut by the U.S. Federal Reserve and a hold decision by the Bank of Japan. In the commodities market, gold edged up by 0.05% to $2,671.70 per ounce, while silver dropped 0.28% to $30.97 per ounce, and copper fell slightly by 0.02% to $9,069.00 per ton. Oil prices were muted, with Brent crude slipping 0.20% to $73.81 per barrel, as weak economic data from China weighed on market sentiment ahead of the Fed's upcoming policy meeting. 

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. Moreover, since the break-out, the index has been forming higher highs and higher lows, reinforcing the ongoing uptrend. Furthermore, the 14-day Relative Strength Index (RSI) is trading above its midpoint, indicating positive market sentiment in the short-term. 

 
Our Stance: It could be said that broader NZ market was supported by significant buying in the industrials sector. While all eyes are on the US Federal Reserve’s meeting, the market participants are expecting that there will be a rate cut. Apart from this critical decision, the market players are required to closely assess the commentary of the officials related to the health of the broader US economy and the outlook for rates. These macroeconomic datapoints might also influence the performance of broader NZ equities.  

You Are a Few Steps Away From Gaining Smart Market Insights

Sign up/Login Now and Gain Access to Exciting Opportunities from Investor and Resource Space!