NZ stocks: AMP loss yet to impact market

12.40pm

A major loss warning by AMP took centre stage on an otherwise lightly traded sharemarket today.

This had yet to impact on the NZSE top 40, which just after 11am dropped 3.07 points to 1991.64 on slight turnover worth $11.4 million.

AMP shares went into a trading halt before news just after 11am that the company was expected a 2002 net loss after unusuals of around A$900 million ($975.6 million).

Its new net operating profit forecast was A$500 million before one-offs, and the company said it was making cuts worth £36 million ($106.38 million) to its British operating margins.

AMP last traded at $12.10 yesterday, just off its year low of $12.00 and nearly half its year high of $23.76.

The most actively stock so far today was Tranz Rail, up 9c to 132 on $1.1 million. The stock has risen 9 per cent since Friday on reports that the Government would pay a "reasonable" price for the railroad company's tracks, if re-nationalised.

Today another media report said the Government was rumoured to be looking at paying $120 million to $130 million for the tracks, far from the $339 million book value Tranz Rail holds for them.

Prime Minister Helen Clark said today she knew of no offer at present.

Elsewhere, Telecom clawed back 2c to 453 on $1.8 million worth of shares following a 10c tumble yesterday on solid volume.

It was pipped at the post turnover-wise by Australian counterpart Telstra which was steady at 496 on $2.7 million after losing 9c yesterday.

Reasons for yesterday's sell-off varied from a widespread technology stock downturn in the United States, to profit-taking from overseas investors interested in gains resulting from the surging New Zealand dollar.

Michael Hill rose 5c to 645 as the jewellery chain reported its six monthly sales to December were up 5.3 per cent on the same period a year ago.

Other moves included Auckland Airport, off 1c to 533, Tower, down 2c to 201, Richmond up 9c to 279, tourism operator THL up 5c to 124, the Warehouse down 9c to 726, Cavalier up 10c to 390 and Baycorp Advantage, up 6c to 240.

There were 23 rises and 28 falls on 90 stocks traded.

New Zealand's market received no direction from Wall St, which was on holiday last night, but Britain's FTSE 100 index slumped 1.1 per cent as investors grappled with a string of lacklustre company outlooks.

- NZPA