Selling in Consumer Staples Sector Impacts NZ Market

Image Source : Krish Capital Pty Ltd

Index Update: On 4th August 2025, the broader NZ market closed the trading session lower amidst selling momentum in the consumer staples sector. On the same day, S&P/NZX 50 Index witnessed a fall of 0.36% to end at 12,684.040 and S&P/NZX 20 Index fell by 0.31%. Also, S&P/NZX 10 Index encountered a decline of 0.44% to 12,364.780. Notably, S&P/NZX All Consumer Staples declined by 1.61%.    

Macro Update: Stats NZ released data about building consents issued (June 2025). In June 2025, the seasonally adjusted number of new dwellings consented witnessed a fall of 6.4%, after increasing 10% in May 2025. Furthermore, the annual value of non-residential building work consented amounted to $9.0 Bn, down by 0.9% from the year ended June 2024. In June 2025, there were 2,627 new dwellings consented.   

Top Market Movers: Among top gainers, 2 Cheap Cars Group Limited (NZX: 2CC) witnessed a rise of 5.77% to end at $0.55 per share. On the other hand, TruScreen Group Limited (NZX: TRU) declined by 5.56% to $0.017 per share.  

Commodity Update: The dollar edged slightly higher on Monday despite a weak U.S. jobs report and President Donald Trump’s dismissal of Bureau of Labor Statistics Commissioner Erika McEntarfer, accusing her of faking data. July job growth fell short of expectations, with the prior month's numbers revised downward by 258,000. Gold rose 0.19% to $3,406.10, silver gained 0.06% to $36.95, copper climbed 0.24% to $9,663.00, while Brent crude fell 0.57% to $69.27 per barrel as OPEC+ planned a production hike. 

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, signaling a possible shift toward a bearish bias. 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) remains below its midpoint, reflecting weak short-term investor sentiment.  

Our Stance: It could be said that the selling in the consumer staples sector impacted the broader NZ market on 4 August. As of now, the macro-economic news has been impacting the global markets amidst the weaker-than-anticipated jobs report. While the focus remains on developments happening around tariffs, the investors are required to be cautious due to the volatile commodity markets. Recently, RBNZ stated that, for New Zealand, the main impact is likely to be weakness in the global growth, which can reduce demand for its exports and reduce the import prices.