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Index Update: On 8th January 2025, the broader NZ market remained muted as S&P/NZX 50 Index increased by just 0.01% to close the session at 13,043.110. On the same day, S&P/NZX 20 Index rose marginally by 0.02% to end at 7,834.080 and S&P/NZX 10 Index declined by 0.09% to close at 13,368.810. Also, S&P/NZX All Utilities witnessed a rise of 1.36%. On the other hand, S&P/NZX All Information Technology fell by 2.10%.
Macro Update: As per MPI, food and fibre sector export revenue is anticipated to bounce back by 7% to $56.9 Bn in the year to June 2025, having bottomed out in the year prior. The export revenue fell 7% in the year to June 2024 as it came off a record high in the previous year, because of correction in prices of key commodities. The price correction in 2023/24 also reflected slower global growth, primarily in China as well as increased global dairy and meat supplies.
Top Market Movers: Among top gainers, Synlait Milk Limited (NZX: SML) witnessed a rise of 4.94% to end the session at $0.425 per share. On the other hand, Cooks Coffee Company Limited (NZX: CCC) declined by 6.90% to $0.27 per share.
Commodity Update: The U.S. dollar strengthened on Wednesday, while the Japanese yen weakened near levels that prompted intervention last year, following strong U.S. economic data that pushed yields higher and reduced expectations for Federal Reserve rate cuts. In commodity markets, gold slipped 0.10% to $2,662.90, while silver rose 0.08% to $30.71. Copper saw a slight gain of 0.25%, reaching $9,008.50. Brent crude oil increased 0.42%, closing at $77.37 per barrel, driven by tighter supplies from Russia and OPEC, and a surprise rise in U.S. job openings, signalling economic growth and higher oil demand. Markets await upcoming payroll data for clarity on rate decisions.
Our Stance: The economic data impacted the sentiments of US market investors and created uncertainty regarding the future direction of interest rates. Moreover, higher treasury yields further weighed over the broader US equity markets. The number of job openings was little changed at 8.1 Mn on the last business day of November, as per the US Bureau of Labor Statistics. Over the month, hires and total separations were little changed at 5.3 Mn and 5.1 Mn, respectively. Coming to NZ economy, RBNZ would be releasing Monetary Policy Statement (or MPS) in February 2025, which is expected to provide idea about the OCR and future changes.






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