Selling in Materials Sector Impacts NZ Market

Image Source : Krish Capital Pty Ltd

Index Update: On 30th July 2025, the broader NZ market ended the trading session lower amidst selling in the materials sector. On the same day, S&P/NZX 50 Index witnessed a fall of 0.62% to end at 12,855.970 and S&P/NZX 20 Index declined by 0.67% to 7,537.530. Also, S&P/NZX 10 Index witnessed a fall of 0.73% to close at 12,600.150. Notably, significant selling was witnessed in the materials sector and S&P/NZX All Materials fell by 2.35% to end at 971.210.    

Macro Update: As per RBNZ Chief Economist Paul Conway, the US made decisive shift towards the more trade protectionist stance. This happens to be a significant change in the global trading environment with implications for the broader global economy. Notably, the tariffs might make the global supply chains less efficient as well as can nudge up the cost of imports. Furthermore, the tariffs can add to inflation pressures in the US.   

Top Market Movers: Among top gainers, Livestock Improvement Corporation Ltd (NZX: LIC) witnessed a rise of 10.53% to end at $1.05 per share. On the other hand, Mainfreight Limited (NZX: MFT) fell by 9.58% to $60.0 per share.   

Commodity Update: The euro hovered near a one-month low on Wednesday, pressured by recent losses amid concerns over the U.S.-EU trade pact. Investors awaited key policy meetings from the Federal Reserve and Bank of Japan. Meanwhile, the U.S. and China agreed to extend their tariff truce. Gold edged up 0.06% to $3,383.40, silver rose to $38.31, copper climbed 0.13%, and Brent crude gained 0.19% to $72.65 amid supply concerns.  

Source: Trading View, Analysis: Kalkine Group   

After experiencing a period of consolidation that followed a sustained upward rally beginning in October 2023, the S&P/NZX 50 index broke decisively above a key resistance level at 12,881 points - an area previously marked by its former peak. This breakout suggests renewed bullish momentum in the market and signals the potential for further upside movement. If the current trend continues, the index may be poised to retest its most recent high, which lies around 13,250 points. Supporting this bullish outlook, the 14-day Relative Strength Index (RSI) is currently trading above its midpoint, indicating strengthening market momentum and improving investor sentiment.  

Our Stance: It could be said that the selling in the materials sector somewhat impacted the broader NZ market on 30th July. While the markets are volatile, the momentum is expected to be influenced by the impact of tariffs on the corporate earnings. Therefore, the market players are required to be cautious about the rising global trade risks. Furthermore, the macro-economic releases, which can weigh over inflation, should also be closely tracked.