Image Souce: Krish Capital Pty Ltd

Index Update: On 14th November 2024, S&P/NZX 50 Index ended the session in green as the index witnessed a rise of 0.15% to end the session at 12,692.940 and S&P/NZX 20 Index rose by 0.07% to 7,653.250. However, S&P/NZX 10 Index witnessed a decline of 0.19% to 12,935.370. Notably, significant buying was witnessed in the consumer staples sector. S&P/NZX All Consumer Staples increased by 2.16% to 2,422.300. S&P/NZX All Materials declined by 1.37%.  

Macro Update: Monthly food prices declined 0.9% in October 2024 as compared with September 2024, as per Stats NZ. The largest contributor to the decline was vegetables, down 7.2%. This was partly offset by an increase in fruit prices, up 0.6%. Over the last 2 years, vegetable prices declined 14.2%, while fruit prices increased 8.0%. In October, veggies were cheaper because of falling prices for tomatoes, cucumber, and capsicum, while apples, oranges, and bananas pushed up the fruit prices. 

Top Market Movers: Among top gainers, WasteCo Group Limited (NZX: WCO) witnessed a rise of 7.41% to end the session at $0.029 per share and Accordant Group Limited (NZX: AGL) increased 5.45% to NZ$0.58 per share.  

Commodity Update:  The U.S. dollar reached a one-year high against major currencies on Thursday, continuing a fourth consecutive day of gains driven by momentum from Donald Trump's election victory, overshadowing rising expectations for Federal Reserve rate cuts. In commodities, gold dropped 0.70% to $2,568.40 per ounce, silver declined 1.27% to $30.26, and copper fell 0.59% to $8,962 per ton. Brent crude slipped 0.1% to $72.23 amid weak U.S. inventory data, while markets awaited further demand signals from China and the International Energy Agency. Oil prices remained under pressure after OPEC reduced its demand forecast for the fourth month. 

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Source: Trading View, Analysis: Kalkine Group  

In July 2024, the S&P/NZX 50 index surpassed both the neckline of a Head and Shoulders pattern on the daily chart and a key resistance level marked by its 2023 high. This breakout indicates that the uptrend, which started in November 2023, is likely to persist and could push the index toward its historical peak from 2021. While currently experiencing a minor pullback, the index continues to form higher highs and higher lows, reinforcing the ongoing uptrend. Furthermore, the 14-day Relative Strength Index (RSI) is trading near its midpoint, indicating a neutral market sentiment in the short-term. 

Our Stance: The broader NZ market is expected to be influenced by the performance of global equities and by macro-economic datapoints. Recently, the U.S. Bureau of Labor Statistics stated that the consumer price index for all urban consumers (CPI-U) rose 0.2% on a seasonally adjusted basis in October, the same increase as in each of the previous 3 months. On 13th November, NASDAQ Composite Index encountered a decline of 0.26% to 19,230.73.  

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