Was Profit-Taking Behind NZ Market Losses on June 3?

index Update: New Zealand shares ended slightly lower on 3 June as cautious global sentiment, softer offshore market cues, and mild profit-taking weighed on the index. On the same day, S&P/NZX 50 Index witnessed a decline of 0.42% to end at 13,115.080, while S&P/NZX 20 Index encountered a fall of 0.51% to 7,435.460. Also, S&P/NZX 10 Index fell by 0.60%. Notably, strong selling was witnessed in the materials sector, with S&P/NZX All Materials falling by 2.72%.   

Macro Update: As per Stats NZ, services exports witnessed a rise of $1.6 billion, or 17%, reaching $11.5 billion in the March 2026 quarter compared with the March 2025 quarter. Travel services were the main driver of the increase in services exports in the March 2026 quarter, rising by $1.3 billion (23%) to $7.0 billion compared with the March 2025 quarter.  

Market Movers: Among top gainers, TruScreen Group Limited (NZX: TRU) witnessed a rise of 5.56% to end at $0.019 per share. On the other hand, Vista Group International Ltd (NZX: VGL) declined by 7.38% to $2.26 per share.   

Commodity Update: The U.S. dollar strengthened on Wednesday as investors closely monitored developments in the Middle East and awaited key U.S. economic data for further clues on the Federal Reserve’s interest-rate outlook. Gold declined 0.26% to USD 4,512.40 per ounce, silver fell 0.33% to USD 75.30 per ounce, and copper eased 0.18% to USD 14,001.35 per tonne. Meanwhile, Brent Crude oil advanced 1.10% to USD 97.01 per barrel amid renewed regional tensions and a sharp decline in U.S. crude inventories.  

Source: Charts by TradingView, Analysis: Kalkine Group 

The S&P/NZX 50 continued to pull back from its recent high in the latest Trading session, falling 55.64 points, or 0.42%, to close at 13,115.08. From a technical perspective, although short-term market sentiment has improved from neutral to positive, with the 14-period RSI remaining above its midpoint, the index is beginning to exhibit a potential top divergence against this momentum oscillator, suggesting that selling pressure remains present and that a confirmed uptrend has yet to emerge. 

Despite the recent recovery in sentiment, the broader downtrend from the January 2026 peak of 13,757.71 remains intact, as the benchmark continues to trade below the key resistance level at 13,282.97. Immediate support is seen around 12,726.35, and a decisive break beneath this level would reinforce expectations of a continuation in the prevailing bearish trend. Conversely, a sustained breakout above 13,282.97, accompanied by stronger trading Volume, would be required to invalidate the negative outlook and indicate the potential for a broader trend Reversal.  

Our Stance: With respect to the US markets, the investor sentiment is improving on expectations that interest rates are near their peak, boosting risk appetite. Corporate Earnings have generally been resilient, helping reinforce confidence in economic stability. Overall, markets are benefiting from a mix of AI-driven growth themes, easing Monetary Policy concerns, and steady economic data. New Zealand markets are currently moving in a cautious, range-bound pattern, with direction largely influenced by offshore market performance rather than domestic news.