Market close: Cost squeeze takes bite out of My Food Bag

Meal kit company My Food Bag fell 4c or 4.26 per cent to a near low of 90c. Photo / Supplied

The New Zealand sharemarket settled back into a watching brief following the rapid-fire price movements on Friday – with Auckland International Airport and some of the property stocks returning to earth.

The S&P/NZX 50 Index finished flat on 12,177.75, just 1.89 points or 0.02 per cent ahead after reaching an intraday high of 12,195.27 and low of 12,093.

There were 86 gainers and 54 decliners over the whole market, with 39.38 million shares worth $172.1 million changing hands.

Matt Goodson, managing director of Salt Funds Management, said there were some extraordinary moves on Friday because of the rebalancing of the FTSE Russell global and real estate, ASX and NZX indices.

"The growth in the passive investment funds means they can have a greater presence in the market than the active investor and when the index changes happen on the same day they are required to buy and sell at whatever price," he said.

"We saw some quite staggering rises, and the market has returned to normality – it did have a strong lead from the United States over the weekend. Some stocks gave back a lot of what they gained on Friday."

The next review involves the MSCI indices in May, and Goodson said Ryman Healthcare will struggle to stay in the large cap index on current pricing.

He said the market is waiting to see the details of the Government's latest move on vaccine mandates, certificates and traffic light system, and the make-up of the Air New Zealand capital raise which is expected to be announced by the end of the month.

Auckland International Airport fell 31.5c or 3.97 per cent to $7.615 after rising 5.95 per cent on Friday.

Amongst the property stocks, Investore was down 3c to $1.76 after gaining 5.92 per cent; Precinct Properties declined 2.5c to $1.57 after climbing 3.57 per cent; and Property for Industry fell 6.5c or 2.33 per cent to $2.72 following Friday's 3.15 per cent rise.

Kiwi Property was down 2.5c or 2.28 per cent to $1.07, and Vital Healthcare Property Trust decreased 3.5c to $3.22.

Mainfreight shed 60c to $80.40; Skellerup Holdings declined 12c or 2.01 per cent to $5.84; and Summerset Group Holdings fell 22c or 1.83 per cent to $11.78. But fellow retirement village operator Arvida was up 7c or 4.43 per cent to $1.65.

Other decliners were Serko down 10c or 2.17 per cent to $4.50; DGL Group shedding 9c or 2.78 per cent to $3.15; Vulcan Steel decreasing 14c to $9.35; Scales Corporation losing 19c or 3.69 per cent to $4.96; and Green Cross Health down 4c or 3.01 per cent to $1.29.

Energy stocks Mercury was down 9.5c to $5.705; Genesis declined 4.5c to $2.835; while Contact gained 7c to $7.87 and Trustpower was up 5c to $6.79.

EBOS Group rose 85c or 2.27 per cent to $38.31. EBOS told the market that one of its Australian businesses TerryWhite Chemmart has opened its 500th network pharmacy, having expanded by 100 stores over the past three years.

Market leader Fisher and Paykel Healthcare gained 33c to $27.93; Fletcher Building increased 8c to $6.40; Infratil was up 9c to $7.92; and a2 Milk collected 7c to $5.85.

Cinema software firm Vista Group increased 5c or 2.78 per cent to $1.85; Hallenstein Glasson rose 23c or 3.76 per cent to $6.35; MHM Automation was up 3c or 5.26 per cent to 60c; and Chatham Rock Phosphate gained 2.5c or 10.87 per cent to 25.5c.

Meal kit company My Food Bag fell 4c or 4.26 per cent to a near low of 90c – a year after listing on the NZX at $1.85.

Goodson said My Food Bag has been meeting its initial public offer (IPO) financial forecasts but it is now facing increased costs with labour, transport and ingredients. "There is some strong competition in this space and My Food Bag has been vulnerable to the cost squeeze. It's a bit of a shame really because there is a real business there."

One of New Zealand's largest private automotive groups, Armstrong's, has delayed plans to launch an IPO and list on the NZX and ASX exchanges. "This is a pragmatic decision to see us come to market under more stable investment conditions," Armstrong's said.