NZX 50 Index Ends Flat: A Quick Look

Image Source : Krish Capital Pty Ltd

Index Update: On 6th May 2025, the S&P/NZX 50 Index ended somewhat on a flat note as it closed at 12,421.090. On the same day, S&P/NZX 20 Index witnessed a marginal rise of 0.01% to close at 7,371.730 and S&P/NZX 10 Index encountered a rise of 0.26% to 12,354.750. Notably, significant buying was witnessed in the financial sector and S&P/NZX All Financials rose by 2.75% to close at 1,519.740. However, S&P/NZX All Information Technology declined by 1.95% to 2,932.200.   

Macro Update: As per the FEU dated 2 May 2025, sentiments have been gradually improving with the stabilization in the employment. Furthermore, the merchandise trade in the March month supports the recent export sector’s strength. NZ’s annual trade deficit narrowed to $6.1 Bn in March, from $6.5 Bn in February. The goods exports rose 0.6% m/m in March as a result of dairy (2.3%), and meat exports increased 4% due to higher volumes.   

Top Market Movers: Among top gainers, Rakon Limited (NZX: RAK) witnessed a rise of 8.33% to end at $0.65 per share. On the other hand, Blis Technologies Limited (NZX: BLT) declined by 13.33% to $0.013 per share.   

Commodity Update: The dollar remained weak Tuesday, pressured by a two-day rally in Taiwan's currency that lifted other Asian peers, exposing the U.S. dollar's fragility. Investors awaited concrete progress in U.S.-China trade talks beyond diplomatic signals. Gold rose 1.27% to $3,364.30, silver jumped 2.34% to $33.22, and copper edged up 0.59% to $9,455.20. Brent crude inincreased.10% to $60.33 after hitting four-year lows on OPEC+ output concerns. 

Source: Trading View, Analysis: Kalkine Group   

The S&P/NZX 50 Index faced a subdued session, slipping 0.17 points and forming a small bearish candlestick pattern on the daily chart. Despite this minor setback, the index continues to hold above its 21-period Simple Moving Average (SMA), a key technical support level that underpins the current short-term uptrend. A critical support zone near 12,200 remains in focus. Sustaining levels above this threshold is important for preserving recent gains and maintaining the market's upward momentum. Continued support at this level would help solidify a constructive short-term outlook. From a broader view, the weekly chart also confirms that the index is trading above its 21-period SMA, reinforcing the presence of a longer-term bullish trend. This technical alignment across both timeframes suggests that, despite short-term headwinds, the index maintains a strong foundation for potential further upside.   

Our Stance: As per the recent FEU, the global financial market turmoil as well as escalations in trade tensions continue to weigh over the consumer and manufacturing sentiments. The release also highlighted that central bank policy decisions as well as comments continue to hint at increased uncertainty. Notably, the investors are still not getting a clear picture about the tariff agreements, which might impact the broader global and NZ markets moving forward. The investors are required to closely track the developments around the interest rates.