NZ Market Witnesses Strong Buying

Image Source : Krish Capital Pty Ltd

Index Update: On 1st September 2025, the broader NZ market ended significantly higher amidst strong buying in the materials sector. On the same day, S&P/NZX 50 Index witnessed a rise of 1.08% to end at 13,070.450 and S&P/NZX 20 Index rose by 1.21%. Also, S&P/NZX 10 Index encountered an increase of 1.26%. Notably, robust buying was witnessed in the materials sector and S&P/NZX All Materials rose by 1.74%.   

Macro Update: As per Stats NZ, there were 33,879 new homes consented in Aotearoa NZ in the year to July 2025, reflecting a fall of 0.1% as compared to the year ended July 2024. The stand-alone house consents increased 1.7% in the year to July 2025, and multi-unit home consents declined overall. Out of the multi-unit homes consented in the year to July 2025 as compared to the year ended July 2024, there were 14,441 townhouses, flats, and units (down by 3.4%), 2,270 apartments (a rise of 26%), and 1,483 retirement village units (down 16%).   

Top Market Movers: Among top gainers, AoFrio Limited (NZX: AOF) witnessed a rise of 20.59% to end at $0.082 per share. On the other hand, Bremworth Limited (NZX: BRW) declined by 6.35%.   

Commodity Update: The U.S. dollar remained range-bound on Monday as investors awaited a series of key labour market data releases this week, which are expected to influence the scale of the Federal Reserve’s anticipated rate cut later this month. Gold rising 0.85% to $3,545.62, silver gaining 1.63% to $41.39, and copper edging slightly higher by 0.01% to $9,923.90. Brent crude slipped 0.36% to $67.25, as concerns over higher output and potential demand weakness from U.S. tariffs outweighed supply risks linked to escalating Russia-Ukraine airstrikes.  

Source: Trading View, Analysis: Kalkine Group  

After beginning a short-term rally in April 2025, the S&P/NZX 50 index has recently revisited its 2024 peak at 13,270. Despite a brief pullback, the index continues to register higher highs and higher lows, signaling that the uptrend is still intact. A decisive break above this resistance would strengthen bullish momentum and potentially pave the way for a test of the all-time high at 13,636. On the downside, immediate support lies at 12,750, with a breach of this level serving as an early warning signal. Meanwhile, the 14-day Relative Strength Index (RSI) is heading north from its midpoint, reflecting balanced market sentiment.  

Our Stance: It could be said that the buying in the materials sector somewhat supported the broader NZ market on 1st September. The broader equity markets are expected to be impacted by the developments happening around trade policies and tariffs. Notably, RBNZ stated that the near-term inflation expectations have witnessed an increase, mainly for households. However, the economic growth in NZ is projected to recover gradually.