NZX 50 Ends Marginally Higher

Image Source : Krish Capital Pty Ltd

Index Update: On 7th August 2025, the broader NZ market ends marginally higher amidst buying in the IT sector. On the same day, S&P/NZX 50 Index witnessed a slight increase of 0.05% to end at 12,887.100 and S&P/NZX 20 Index rose by 0.06% to 7,561.420. Also, S&P/NZX 10 Index increased by 0.09% to 12,642.760. Notably, strong buying was witnessed in the IT sector and S&P/NZX All Information Technology rose by 2.01% to end at 2,912.490.    

Macro Update: As per the FEU dated 31 July 2025, the monthly goods trade deficit widened in the month of June as imports increased, partly reflecting the large one-off items. Notably, the diversifying NZ’s export base could help in spreading risk as well as promote economic resilience. However, there are differing viewpoints on how NZ’s country or product concentration impacts the economic risk.   

Top Market Movers: Among top gainers, EROAD Limited (NZX: ERD) witnessed a rise of 26.42% to end at $2.01 per share. On the other hand, New Talisman Gold Mines Limited (NZX: NTL) fell by 10.53% to $0.051 per share.  

Commodity Update: The dollar slipped against major currencies on Thursday amid rising expectations of Federal Reserve rate cuts and concerns over political influence on U.S. institutions. Gold gained 0.28% to $3,443.10-, while silver rose 0.48% to $38.08. Copper dipped 0.04% to $9,686.40. Brent crude rebounded 0.30% to $67.09, ending a five-day slide, supported by steady U.S. demand and eased supply fears amid potential U.S.-Russia Ukraine talks.  

Source: Trading View, Analysis: Kalkine Group  

Following a consolidation phase that came after a sustained rally starting in October 2023, the S&P/NZX 50 index has recently attempted to rebound and re-test the ascending trendline from below, though this effort has not yet succeeded. In the short term, caution is warranted as the index has broken below a minor double top formation. Immediate support lies at 12,614 points, and a decisive break below this level could trigger a further decline toward the next support around 12,421. Conversely, a breakout above the 12,983 level would signal renewed bullish momentum and potentially pave the way for a move to fresh highs. Additionally, the 14-day Relative Strength Index (RSI) surpassed its midpoint in the last trading session, reflecting a shift from investor sentiment from negative to positive.  

Our Stance: It could be said that strong buying in the IT sector somewhat helped the broader NZ market on 7th August. While the Monetary Policy Committee has reduced the OCR to 3.25%, there are risks pertaining to global trade and volatile commodity and currency markets. While the tariffs might make global supply chains less efficient, for NZ, the key impact can be the weaker global growth, according to RBNZ. The US markets are expected to be impacted by the macro-economic releases. On August 12, data about the consumer price index is expected to be released.