Image Souce: Krish Capital Pty Ltd

Index Update: On 9th December 2024, the S&P/NZX 50 Index closed marginally lower, declining 0.06% to end the session at 12,801.800. However, S&P/NZX 20 Index increased by 0.15% to 7,710.340 and S&P/NZX 10 Index rose by 0.41% to close the day at 13,032.110. Notably, significant selling was witnessed in the materials sector and S&P/NZX All Materials fell by 2.13% to close the day at 1,042.800. On the other hand, S&P/NZX All Industrials increased by 0.58%.  

Macro Update: Stats NZ stated that NZ was a net exporter of greenhouse gas emissions in 2022, with emissions embodied in exports 79% greater than emissions embodied in imports. Notably, emissions embodied in gross fixed capital formation fell 2.7% (352 kilotonnes), driven by 3.6% (138 kilotonnes) fall in emissions from residential buildings. The household consumption emissions were 38,592 kilotonnes in 2022, reflecting a fall of 1,401 kilotonnes (3.5%) from the previous year.  

Top Market Movers: Among top gainers, Metro Performance Glass Limited (NZX: MPG) witnessed a rise of 9.62% to end the session at NZ$0.057 per share. On the other hand, Rua Bioscience Limited (NZX: RUA) declined by 8.00% to $0.023 per share. 

Commodity Update: The U.S. dollar weakened on Monday as investors awaited crucial inflation data this week, particularly the consumer price index (CPI), for insights into potential interest rate moves. Geopolitical tensions in Syria, following the ousting of President Bashar al-Assad, added to market uncertainty. In commodities, gold gained 0.25% to $2,666.20, silver rose 0.02% to $31.59, and copper climbed 0.30% to $9,125.50. Brent crude edged up 0.30% to $71.40, as Middle East tensions overshadowed concerns about weak Chinese demand, highlighted by Saudi Aramco's price cuts to Asian buyers. The market is focused on Wednesday’s CPI report for economic signals. 

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. Moreover, since the break-out, the index has been forming higher highs and higher lows, reinforcing the ongoing uptrend. Furthermore, the 14-day Relative Strength Index (RSI) is trading near its midpoint, indicating neutral market sentiment in the short-term. 

 
Our Stance: Moving forward, the broader NZ market is expected to be influenced by the macro-economic datapoints. It could be said that the market players are looking out for hints which can give some idea about the potential interest rate moves. The broader market seems to be focused on the consumer price index report, which is expected to be released on 11th December. On 12th December, data about initial jobless claims will be released, which can provide some idea about the health of the US economy.  

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