NZX 50 Index Witnesses Marginal Increase

Image Source : Krish Capital Pty Ltd

Index Update: On 6th March 2025, the S&P/NZX 50 Index witnessed a marginal rise of 0.14% to end the session at 12,428.840 and S&P/NZX 10 Index declined by 0.07% to 12,229.970. On the same day, S&P/NZX 20 Index increased by 0.05% to end at 7,413.060 and S&P/NZX 50 Portfolio Index rose by 0.20%. Also, materials sector witnessed significant buying momentum and S&P/NZX All Materials increased by 2.08% to 1,153.300.   

Macro Update: The seasonally adjusted volume of building work in NZ amounted to $7.4 Bn in the December 2024 quarter, reflecting a fall of 4.4% as compared with the September 2024 quarter, as per Stats NZ. The residential building work declined 4.9% to $4.5 Bn and non-residential building work fell by 3.1% to $2.8 Bn (seasonally adjusted) in the final quarter of 2024. The decline in residential building activity was because of a decrease in new homes consented over the last two and a half years.  

Top Market Movers: Among top gainers, Cooks Coffee Company Limited (NZX: CCC) witnessed a rise of 5.36% to end at $0.295 per share. On the other hand, Pacific Edge Limited (NZX: PEB) fell by 10.87%.  

Commodity Update: The euro reached a four-month high against the U.S. dollar on Thursday, driven by a surge in European bond yields, spurred by Germany’s proposed 500-billion-euro infrastructure fund and borrowing limit overhaul. Meanwhile, the U.S. dollar struggled near a four-month low against major peers. President Trump's administration granted a one-month reprieve on auto import levies for Canada and Mexico, highlighting shifting trade dynamics. In commodities, gold rose 0.22% to $2,932.30, silver gained 0.21% to $33.20, and copper increased 0.20% to $9,612.80. Brent crude oil climbed 0.61% to $69.72 amid tariff-related concerns. 

  Source: Trading View, Analysis: Kalkine Group   

In July 2024, the S&P/NZX 50 index broke above both the neckline of a Head and Shoulders pattern on the daily chart and a crucial resistance level set by its 2023 high. This breakout suggests that the uptrend, which began in November 2023, is likely to continue and may drive the index toward its 2021 historical peak. Despite the ongoing correction, the index is bouncing back above the key support level defined by the 2023 high and the pattern’s neckline, reinforcing expectations of a sustained uptrend. Additionally, the 14-day Relative Strength Index (RSI) is reversing from its oversold territory, signaling a potential rebound in the near future.  

Our Stance: It could be said that the global markets are being affected by the developments related to the tariffs and the ongoing trade tensions. While there is still uncertainty, the market players are required to be patient amidst the ongoing macro-economic developments. Recently, RBNZ stated that the GDP growth for many of the main trading partners is below potential. However, the economic growth in the US remained robust. On 12th March, the broader markets are expected to be affected by the US Consumer Price Index data.