Index Update: On 21st January, the broader NZ market closed lower amidst significant selling in the industrials sector. On the same day, S&P/NZX 50 Index witnessed a decline of 1.15% to end at 13,417.170 and S&P/NZX 20 Index fell by 1.27%. Also, S&P/NZX 10 Index encountered a fall of 1.36% to 12,723.560. Notably, industrials sector witnessed strong selling momentum, with S&P/NZX All Industrials declining by 1.66%.     

Macro Update: As per Budget Policy Statement 2026, the economy has been recovering from a deep and protracted downturn. The Reserve Bank gave some monetary stimulus by decreasing the OCR. The HYEFU (Half Year Economic and Fiscal Update) forecasts demonstrate the strengthening of GDP growth over 2026 and declining of unemployment from early 2026.   

Market Movers: Among top gainers, TruScreen Group Limited (NZX: TRU) witnessed a rise of 5.26% to end at $0.020 per share. On the other hand, WasteCo Group Limited (NZX: WCO) declined by 7.14%.   

Commodity Update: The U.S. dollar hovered near three-week lows against the euro and Swiss franc on Wednesday, as renewed White House rhetoric over Greenland weighed on U.S. assets, including equities and Treasuries. Gold rose 1.36% to USD 4,834.20, while silver eased 0.95% to USD 93.73. Copper advanced 0.55% to USD 12,851.00. Brent crude declined 1.22% to USD 64.13, pressured by expectations of higher U.S. inventories despite temporary supply disruptions.  

Source: Trading View, Analysis: Kalkine Group  

The S&P/NZX 50 Index extended its decline in the most recent trading session, shedding 156.76 points, or 1.15%, to close at 13,417.18. Despite this pullback from its recent peak, the index continues to trade above its previous low, suggesting that the prevailing uptrend remains intact. Prices are also converging toward the 21-day SMA and the ascending trendline that has been in place since April 2025, increasing the likelihood of a technical rebound. Moreover, the benchmark has already validated a firm breakout above its former all-time high of 13,747.71, recorded in November 2025, which bolsters expectations for a resumption of upward momentum. The next key resistance and near-term target is therefore seen around the psychologically important 14,000 level.  

Our Stance: In the US, the broader markets were impacted by global insecurity and macroeconomic uncertainties. Moving forward, the market experts believe that corporate earnings might help in stabilizing the broader momentum and could also help improve the sentiments of investors. Coming to the NZ equities, it could be said that the downturn in the global markets weighed over the NZ markets as well. The macro-economic data points is expected to influence the NZ markets over the upcoming sessions.   

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