Selling in Financials Sector Impacts NZ Market

Image Source : Krish Capital Pty Ltd

Index Update: On 23rd May 2025, the broader NZ market closed the session lower amidst selling in the financial sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.52% to end the session at 12,596.500 and S&P/NZX 20 Index fell by 0.64%. Also, S&P/NZX 10 Index encountered a fall of 0.91% to close at 12,452.130. S&P/NZX All Financials fell by 2.50% to end at 1,483.700. However, S&P/NZX All Energy witnessed a rise of 3.96% to end at 1,881.180.  

Macro Update: The total volume of retail sales in NZ witnessed a rise of 0.8% in the March 2025 quarter as compared to the December 2024 quarter, as per Stats NZ. The growth in retail activity remained modest in the quarter ending March, with majority of industries making a positive contribution. Notably, the motor vehicle retailing and pharmaceutical and other store-based retailing witnessed the largest increases this quarter. Stats NZ also stated that 10 of the 15 retail industries witnessed increased retail sales volumes during the March 2025 quarter as compared to the December 2024 quarter, after adjusting the price and seasonal effects.   

Top Market Movers: Among top gainers, Metro Performance Glass Limited (NZX: MPG) witnessed a rise of 10.00% to end the session at $0.055 per share. On the other hand, New Talisman Gold Mines Limited (NZX: NTL) declined by 4.29% to $0.067 per share.  

Commodity Update: The U.S. dollar softened on Friday, heading for its first weekly decline in five weeks against the euro and yen, as concerns over America’s $36 trillion debt and a costly tax bill dampened sentiment. Moody’s recent downgrade of U.S. debt spurred safe-haven buying. Gold dipped 0.08% to $3,291.80, silver slipped 0.05%, while copper rose 0.12%. Brent crude dropped 0.50% to $64.11 on renewed OPEC+ oversupply concerns. 

Source: Trading View, Analysis: Kalkine Group   

Following a recent pullback, the S&P/NZX 50 surpassed its previous high of 12,400 points and moved above the 50-day simple moving average — a key indicator of trend direction — signaling a potential recovery. Despite experiencing the recent minor correction, the index remains above the 12,400 level, suggesting the recovery trend is still intact. Additionally, the 14-day Relative Strength Index (RSI) is holding above its midpoint, reflecting continued positive market sentiment.   

Our Stance: It could be said that decline in financials sector somewhat impacted the NZ market on 23rd May. On 22nd May, the broader US markets witnessed a volatile session amidst some decline in treasury yields. Also, President Trump’s tax and spending bill was approved which could have provided some sort of support to the markets. While certain investment opportunities remain, there are expectations of market fluctuations over the near term. The macro releases are expected to influence the global and NZ markets. On 29th May 2025, data about initial jobless claims would be released.