Selling in Healthcare Sector Weighs Down NZ Market

Image Source : Krish Capital Pty Ltd

Index Update: On 29th May 2025, the broader NZ market closed the trading session in red amidst significant selling in the healthcare sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.65% to end the session at 12,281.310 and S&P/NZX 20 Index fell by 0.61% to 7,255.750. Also, S&P/NZX 10 Index encountered a decline of 0.37% to 12,103.730. Notably, healthcare sector witnessed selling pressure and S&P/NZX All Health Care declined by 2.24% to 2,930.050.   

Macro Update: Recently, The Monetary Policy Committee reduced the OCR by 25 bps to 3.25%. Notably, annual consumers price index inflation rose to 2.5% in Q1 FY 2025. The inflation expectations throughout the firms and households have also increased. However, core inflation has been falling and there remains a spare productive capacity in the economy. As per the release, tariffs and higher policy uncertainty overseas might moderate NZ’s economic recovery and reduce the medium-term inflation pressures.  

Top Market Movers: Among top gainers, My Food Bag Group Limited (NZX: MFB) witnessed a rise of 9.76% to $0.225 per share. On the other hand, Accordant Group Limited (NZX: AGL) declined by 8.33% to $0.275 per share.  

Commodity Update: A U.S. federal court blocked President Trump’s proposed "Liberation Day" tariffs, ruling he exceeded his authority. The decision boosted the dollar against haven currencies. Gold dropped 0.94% to $3,291.30, while silver rose 0.25% to $33.34. Copper gained 0.40% to $9,604.95. Brent crude climbed 1.00% to $65.55, lifted by improved market sentiment following the court’s rejection of the broad import duties plan. 

Source: Trading View, Analysis: Kalkine Group   

Following a recent upward rally, the S&P/NZX 50 index encountered resistance as it approached an important ascending trendline that has been in place since October 2023. This trendline, which had previously supported the broader bullish trend, acted as a turning point, prompting a reversal in the index’s direction. In the sessions that followed, the index penetrated a notable support level near 12,400 points - previously established as the peak in March 2025 - alongside a breach of the trend following indicator 50-day SMA, suggesting a shift toward stronger downward momentum. Moreover, the 14-day Relative Strength Index (RSI) is trading below its midpoint in the latest trading session, indicating a negative market sentiment in the short-term.  

Our Stance: It could be said that selling in the healthcare sector impacted the broader NZ market on 29th May 2025. RBNZ stated that the NZ economy has been recovering after a period of contraction. Notably, increased commodity prices as well as reduced interest rates have been supporting the overall economic activity. However, the recent developments in the international economy can impact global economic growth.