Selling in Financials Sector Weighs Over NZ Market

Index Update:  On 10th December, the broader NZ market ended lower amidst selling in the financials sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.62% to end at 13,371.060 and S&P/NZX 20 Index witnessed a decline to close at 7,610.560. Also, S&P/NZX 10 Index encountered a fall of 0.82%. Notably, S&P/NZX All Financials ended at 1,638.190, reflecting a fall of 1.38%. However, S&P/NZX All Materials witnessed a strong buying momentum as the index rose by 4.79%.     

Macro Update: Stats NZ released data about the international travel (October 2025), with overseas visitor arrivals coming at 262,700 in October 2025, reflecting an increase of 22,500 compared to October 2024. Notably, 121,100 overseas visitor arrivals from Australia were a record for the month of October. The total number of overseas visitor arrivals in October 2025 stood at 93% of the 283,800 in October 2019 (before COVID-19).    

Market Movers: Among top gainers, WasteCo Group Limited (NZX: WCO) witnessed a rise of 6.67% to end at $0.016 per share. On the other hand, Minerals Exploration Limited (NZX: MEXZ) declined by 17.86%.  

Commodity Update: The dollar held largely steady on Wednesday as traders awaited a pivotal Federal Reserve decision, with markets leaning toward a rate cut amid one of the most divisive meetings in years. Commodities saw mild gains: gold rose 0.18% to USD 4,244.45, silver climbed 1.26% to USD 61.59, and copper added 0.82% to USD 11,560.80. Brent crude inched up 0.20% to USD 62.05, though supply concerns and Russia-Ukraine peace talks limited upside.   

Source: Trading View, Analysis: Kalkine Group  

The S&P/NZX 50 Index slipped 83.72 points, or 0.62%, in the latest session, extending its consolidation phase between its all-time high and a major support band around the 2024 peak. Although the market has experienced a modest pullback, the index continues to trade well above this crucial support zone, keeping the short-term outlook positive. As long as prices hold above this key level, the broader uptrend that started in October 2023 remains intact. Immediate support is seen at 13,270; maintaining this area would preserve the bullish bias and allow for another challenge of the record high. However, a clear move below 13,270 could indicate a deeper retracement, opening downside risk toward the 13,000 area before the longer-term uptrend resumes.   

Our Stance: As of now, the market experts believe that investors are required to be watchful about the further cuts from the US Fed. Reserve Bank of New Zealand, in its release dated 26th November, noted that global economic growth benefited due to the robust AI-related investment. However, it is expected to slow in 2026 as trade barriers impact the activity. Overall, RBNZ believes that the risks to the inflation outlook remain balanced.