NZ stocks: THL hit by profit warning

12.00pm

The New Zealand sharemarket was in the black today following positive sessions offshore.

However, trans-Tasman tourism operator Tourism Holdings Ltd issued a profit warning today on the back of the war in Iraq and disruptions due to the killer virus severe acute respiratory syndrome.

THL said in a statement its full-year profit would be about 30 per cent lower than forecast at $5.5 million.

The stock opened down 10c at 85, before recovering slightly to 92, down 3c by midday.

"It's probably not unexpected really given the state of the world's tourism sector," David Cleal of Macquarie Equities said.

By midday the benchmark NZ50 gross index was up 9.20 points, or 0.47 per cent, at 1987.07.

Retail stocks fared well today after releasing positive numbers yesterday, with The Warehouse up 13c at 457, and Briscoe Group up 8c at 203.

The Warehouse blotted its copybook with a profit warning last week, its shares sinking 26 per cent on Friday, but redeemed itself yesterday with a rise in third-quarter sales in New Zealand and Australia.

Briscoe said yesterday first quarter sales were up 11.25 per cent, a turnaround after its annual profit failed to meet expectations in March.

Market leader Telecom, which is launching an intensive marketing campaign in Australia for its AAPT unit, was up 3c at 482.

Elsewhere on the market, Air New Zealand lost 1c to 44, Auckland International Airport was up 8c at 515, AMP lost 17c to 603, Fisher & Paykel Appliances gained 14c to 1105, and Tower gained 1c to 226.

Carter Holt Harvey lost 1c to 164, Contact Energy gained 6c to 440, jeweller Michael Hill was up 8c at 450, and Sky TV was up 2c at 407.

There were 36 rises and 34 falls on the 108 stocks traded.

Volume was moderate, with 14.64 million stocks valued at $48.19 million.

In London the FTSE-100 closed above the key 4000 level for the first time since January, while on Wall St stocks ended higher as the Federal Reserve kept interest rates unchanged, as expected.

The Dow Jones industrial average rose 57 points, or 0.67 per cent, to 8588.36; the Standard & Poor's 500 Index rose 7.84 points, or 0.85 per cent, to 934; and the Nasdaq Composite gained 19.67 points, or 1.31 per cent, to 1523.71.

- NZPA