Index Update: On 4th December 2024, the broader NZ market ended in red amidst decline in the materials sector. On the same day, S&P/NZX 50 Index witnessed a decline of 1.50% to end the session at 12,896.670 and S&P/NZX 20 Index fell by 1.57% to close at 7,759.140. Also, S&P/NZX 10 Index encountered a decline of 1.46%. S&P/NZX All Materials witnessed a fall of 3.46% to 1,047.360. However, S&P/NZX Primary Sector Index rose by 0.31%.

Macro Update: The total exports of goods and services for the September 2024 quarter amounted to $22.2 Bn, up from $21.5 Bn in the September 2023 quarter. The total two-way trade for the September 2024 quarter stood at $51.3 Bn. Total services exports declined $43 Mn to $6.5 Bn in the September 2024 quarter as compared with the September 2023 quarter.

Top Market Movers: Among top gainers, Green Cross Health Limited (NZX: GXH) witnessed an increase of 10.56% to end the session at $0.890 per share. On the other hand, WasteCo Group Limited (NZX: WCO) declined by 8.33% to $0.022 per share.

Commodity Update: The U.S. dollar rebounded from a three-week low against the yen on Wednesday, maintaining strength against other major currencies as traders weighed the possibility of a Federal Reserve interest rate cut this month. Market participants are awaiting Friday's payroll data for more clarity on the rates outlook, with a private payroll report due later today offering a preview. In commodities, gold increased 0.05% to $2,669.60, silver rose 0.08% to $31.57, and copper dipped 0.32% to $9,090.50. Brent crude slipped 0.03% to $73.60 per barrel after a sharp rise earlier, with oil sentiment cautious ahead of the OPEC+ meeting, and Israel's warning to attack Lebanon if its ceasefire with Hezbollah collapses adding pressure.

Our Stance: It could be said that the broader NZ market was impacted by the sell-off in the materials sector. As per market experts, the political unrest in South Korea seems to fade and the focus of market enthusiasts is expected to shift to future rate cuts from the US Federal Reserve. However, the investors are required to be cautious amidst the macroeconomic pressures, particularly from the global market, which might impact growth expectations.


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 short-term market sentiment.

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