NZX 50 Ends Marginally Higher

Image Source : Krish Capital Pty Ltd

Index Update: On 8th August 2025, the broader NZ market closed lower amidst selling in the financials sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.33% to end at 12,844.630 and S&P/NZX 20 Index fell by 0.36% to close at 7,534.230. Also, S&P/NZX 10 Index fell by 0.44%. Notably, S&P/NZX All Financials witnessed a fall of 1.21% to close at 1,589.910.   

Macro Update: On July 9, RBNZ stated that the global growth is anticipated to slow over H2 FY 2025, which reflects the uncertain consequences of trade protectionism. However, the Committee also noted that the fiscal expansion in the euro area, the US, and China could counter some downside risks. If the medium-term inflation pressures ease as expected, the Committee anticipates to reduce the OCR further.    

Top Market Movers: Among top gainers, T&G Global Limited (NZX: TGG) witnessed a rise of 6.67% to end at $2.40 per share. On the other hand, Synlait Milk Limited (NZX: SML) fell by 6.45% to $0.58 per share.  

Commodity Update: The U.S. dollar weakened on Friday, heading for a weekly decline after President Trump’s interim Fed Governor pick raised hopes of a dovish successor to Jerome Powell. Gold climbed 1.10% to $3,491.90, silver added 0.54% to $38.50, and copper edged up 0.19% to $9,701.10. Brent crude inched up 0.01% to $66.40, as investors weighed the global economic risks from newly imposed tariffs.  

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) has 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 selling in the financial sector somewhat impacted the broader NZ market on 8th August. RBNZ stated that the pace of recovery in domestic consumption as well as investment is weak, demonstrating elevated caution amidst global policy shocks and uncertainty. That being said, the robust export prices and the monetary policy easing can help the broader economic recovery. Moving forward, the investors would continue to assess the impacts of Trump’s policies on the broader equity markets.