Selling in IT Sector Impacts NZ Market

                                                              Source: Krish Capital Pty Ltd

Index Update: On 9th September 2025, the NZ market closed in red amidst selling in the broader technology sector. On the same day, S&P/NZX 50 Index witnessed a fall of 0.21% to end at 13,253.730 and S&P/NZX 20 Index declined by 0.56% to close at 7,673.900. Also, S&P/NZX 10 Index witnessed a fall of 0.40% to 12,791.490. Notably, strong selling was witnessed in the technology sector and S&P/NZX All Information Technology fell by 1.24%.  

Macro Update: As per Stats NZ, the construction and manufacturing industries witnessed the largest decreases in sales during the June 2025 quarter, out of the 14 industries which are measured by business financial data. The construction sales were down by $720 Mn as compared to the March 2025 quarter. The construction sales declined 3.1% in the June 2025 quarter, after the 0.7% increase in the March 2025 quarter.  

Top Market Movers: Among top gainers, New Talisman Gold Mines Limited (NZX: NTL) witnessed a rise of 7.50% to end at $0.043 per share. On the other hand, Metro Performance Glass Limited (NZX: MPG) fell by 20.00% to $0.032 per share.  

Commodity Update: The dollar slipped to a nearly seven-week low on Tuesday as markets awaited U.S. data revisions that may reveal deeper labour market weakness, strengthening the case for sharper Federal Reserve rate cuts. Commodities advanced, with gold up 0.28% at $3,687.50, silver rising 0.25% to $42.00, and copper gaining 0.30% at $9,952.60. Brent crude added 0.20% to $66.17, supported by limited OPEC+ output hikes and renewed sanctions concerns on Russia. 

Source: Trading View, Analysis: Kalkine Group 

After beginning a short-term rally in April 2025, the S&P/NZX 50 index has recently revisited its 2024 peak at 13,270. Additionally, the index continues to register higher highs and higher lows, signaling that the uptrend is still intact. A decisive break above this resistance would strengthen bullish momentum and potentially pave the way for a test of the all-time high at 13,636. On the downside, immediate support lies at 12,750, with a breach of this level serving as an early warning signal. Meanwhile, the 14-day Relative Strength Index (RSI) is heading north from its midpoint, reflecting a positive market sentiment. 

Our Stance: It could be said that the selling in broader technology sector somewhat impacted the NZ market on 9th September. Moving forward, the global markets are expected to be influenced by the macro-economic updates. On September 10, data about producer price index is expected to be released and, on September 11, Core CPI data will be released. The macro-economic data points can affect the decision about the interest rates.