Selling in Materials Sector Impacts NZ Market

Index Update: On 29th January, the broader NZ market closed lower amidst selling in the materials sector. On the same day, S&P/NZX 50 Index witnessed a decline of 0.48% to end at 13,348.610 and S&P/NZX 20 Index fell by 0.44% to close at 7,587.560. Also, S&P/NZX 10 Index declined by 0.49%. Notably, significant selling was witnessed in the materials sector and S&P/NZX All Materials fell by 2.21%.  

Macro Update: As per Stat NZ, total exports amounted to $80.7 Bn in the year to December 2025. The value of total exports rose $9.9 Bn (or 14%) as compared to December 2024. Notably, milk powder, butter, and cheese led the growth in exports, rising $4.2 Bn (or 21%) to $24.3 Bn in the year to December 2025. The rise in milk, cheese, and butter was mainly because of increased unit prices for such items.   

Market Movers: Among top gainers, Black Pearl Group Limited (NZX: BPG) witnessed a rise of 8.33% to end at $1.105 per share. On the other hand, Rua Bioscience Limited (NZX: RUA) declined by 10.00%.   

Commodity Update: The U.S. dollar stayed weak on Thursday as uncertainty over U.S. economic policy and geopolitical developments continued to weigh on sentiment, despite supportive comments from the White House and European officials. The Federal Reserve’s calmer view on labour market and inflation risks strengthened expectations of interest rates remaining on hold for longer. Gold jumped 3.98% to USD 5,552.36, silver rose 3.56% to USD 117.57, and copper climbed 4.29% to USD 13,688.00, while Brent crude advanced 0.73% to USD 68.90 on Middle East supply concerns.  

Source: Trading View, Analysis: Kalkine Group  

In the latest trading session, the S&P/NZX 50 Index extended its decline, shedding 64.26 points, or 0.48%, to close at 13,348.62, thereby deepening the correction from its record high. Although the index briefly slipped below the ascending trendline that has been in place since April 2025, this breach may indicate the early stages of a consolidation phase, capped by resistance near the all-time high and underpinned by firm support at the December 2024 peak. Importantly, the benchmark remains above its previous swing low, suggesting that the broader bullish trend is still intact. Near-term resistance is located at the recent peak of 13,757.71, and a decisive break above this level could pave the way toward the key psychological threshold of 14,000. On the downside, initial support is seen around 13,250, with sustained holding above this zone helping to maintain the prevailing positive structure.  

Our Stance: While the earnings from the giants dominated broader market news, the US Fed kept the rates steady. Furthermore, strong positive momentum was witnessed in gold and silver amidst tensions in the macro-economic environment. Coming to the NZ market, it could be said that the NZ equities were impacted by the US Fed’s decision amidst uncertainty about the future cuts. Moving forward, Stats NZ would be releasing the labour market statistics for December 2025 quarter.