index/">index Update: On 13th April, the broader NZ market witnessed selling momentum, with S&P/NZX 50 index/">index declining by 1.22% to end at 13,020.180 and S&P/NZX 20 index/">index falling 1.29% to 7,348.670. On the same day, S&P/NZX 10 index/">index witnessed a fall of 1.77% to 12,601.950. Notably, strong selling pressure was encountered in the consumer staples sector, with S&P/NZX All Consumer Staples witnessing a decline of 9.71%.   

Macro Update: As per FEU dated 9th April, labour market growth remained subdued, despite a 0.3% rise in February’s monthly employment data. However, downward revisions to January, along with weakness in December, meant total employment was slightly below November levels last year. Australian house prices extended their gains, increasing 0.7% in March and reaching a 9.9% year-on-year rise.  

Market Movers: Among top gainers, New Talisman Gold Mines Limited (NZX: NTL) witnessed a rise of 6.67% to $0.016 per share. The a2 Milk Company Limited (NZX: ATM) declined by 12.40%.   

Commodity/">Commodity Update: U.S. dollar rose to its strongest level in one week during early Asian trade on Monday after peace talks between the United States and Iran collapsed and the U.S. Navy prepared to blockade Iranian ports. Gold declined 0.99% to USD 4,739.80, silver dropped 2.78% to USD 74.35, and copper slipped 0.66% to USD 12,771.00. Meanwhile, Brent Crude jumped 7.36% to USD 102.20, moving back above USD 100.00 per barrel again.  

Source: Charts by TradingView, Analysis: Kalkine Group   

In the latest session, the S&P/NZX 50 index/">index continued to retreat from its prior rebound, falling 161.26 points, or 1.22%. From a technical perspective, this pullback breached the immediate support level at 13,073.68, indicating a breakdown of the short-term uptrend established from the recent trough. Furthermore, the 14-period RSI has slipped back below its midpoint, reinforcing the weakening momentum and supporting the bearish outlook. Conversely, a clear and sustained move above 13,339.06, aligned with the mid-March peak, and preferably supported by stronger trading Volume/">Volume, would be necessary to negate the current downside bias and suggest the emergence of a potential trend Reversal/">Reversal.  

Our Stance: As of now, the US markets are being driven by AI-led mega-cap strength, with tech continuing to dominate performance. Furthermore, the corporate Earnings/">Earnings and cautious investor positioning are expected to affect the broader market movements. The NZ market trends are being shaped by gradual economic recovery, easing Interest Rate expectations, and improving Business/">Business confidence. Property and interest-rate sensitive sectors remain cautious, while stock performance is increasingly driven by company-specific Earnings/">Earnings, leasing activity, and valuation adjustments.  

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