Strong Buying in Healthcare Sector Supports NZ Market

Image Source : Krish Capital Pty Ltd

Index Update: On 1st July 2025, the broader NZ market closed the trading session higher amidst buying in the healthcare sector. On the same day, S&P/NZX 50 Index witnessed a rise of 1.05% to end at 12,734.530 and S&P/NZX 20 Index increased by 0.98% to 7,464.230. Also, S&P/NZX 10 Index increased by 1.02% to end at 12,494.650. Notably, S&P/NZX All Health Care witnessed a strong increase of 2.98% to 3,144.200. On the other hand, S&P/NZX All Consumer Discretionary fell by 1.29%.   

Macro Update: As per Stats NZ, there were 33,530 new homes consented in Aotearoa NZ in the year to May 2025, reflecting a fall of 3.8% as compared to the year ended May 2024. In the year to May 2025, there were 17,852 multi-unit homes consented, reflecting a decline of 8.6% as compared to the year ended May 2024. Furthermore, there were 3,151 new homes consented in May 2025, implying a fall of 0.8% as compared to May 2024.     

Top Market Movers: Among top gainers, Skellerup Holdings Limited (NZX: SKL) witnessed a rise of 5.10% to end at $4.95 per share. On the other hand, PaySauce Limited (NZX: PYS) fell by 7.80% to $0.189 per share.   

Commodity Update: The U.S. dollar hit its weakest level against the euro since September 2021 amid rising fiscal concerns linked to President Donald Trump’s spending bill and ongoing trade uncertainty. Markets are increasingly pricing in a quicker pace of Federal Reserve rate cuts ahead of key U.S. data, including Thursday’s nonfarm payrolls report. Gold rose 0.67% to $3,329.70, silver dipped 0.02% to $35.84, copper edged down 0.01% to $9,873.30, and Brent crude slipped 0.24% to $66.58.  

Source: Trading View, Analysis: Kalkine Group   

Following a sustained upward rally that began in October 2023, the S&P/NZX 50 index appears to be transitioning into a consolidation phase. This is evidenced by the formation of a lower high and a higher low on the chart - typically a technical signal that the market may be entering a trading range. Unless there is a clear breakout above the previous resistance level at 12,881 points or a breakdown below the earlier support level at 12,254 points, this sideways movement is expected to persist in the near term. Additionally, the 14-day Relative Strength Index (RSI) is currently hovering around its midpoint, which reinforces the previous outlook. As a result, investors may need to wait for a decisive move in either direction before gaining greater clarity on the market’s next trend.  

Our Stance: It could be said that buying in the healthcare sector somewhat supported the broader NZ market on 1 July 2025. Moving forward, the broader US and NZ markets are expected to be impacted by the macroeconomic news. On 3rd July, the data about initial jobless claims is expected to be released, which can impact the investors’ sentiments. Furthermore, the investors need to closely track the developments happening around the trade policies as these can influence market movements in the near future.