NZ stocks: Focus on Air NZ, Baycorp

By ELLEN READ markets writer

The fag-end of the interim results season provides the focus in a sparse stockmarket diary this week.

Air New Zealand reports its interim profit on Thursday morning - its first under its new 82 per cent owner, the Government.

The bottom line is expected to be very red, although there is likely to be more interest in learning what strategic responses the brains trust at Quay Tower has come up with.

The airline has been sorting out its board and top management in recent weeks, while continuing to operate in a tough environment.

Australian partner Ansett did not make it off the canvas, and major rival Qantas is preparing to lift its presence here.

Baycorp Advantage, now based in Sydney, releases its interim results on Wednesday. As Baycorp before the merger, the company was a star performer on the local market, and shareholders will be hoping for more of the same from the biggerentity.

These just about wrap up the season - with only The Warehouse first-half results remaining in the future diary.

Credit Suisse First Boston analyst Jason Wong said the season had been the best for some time.

The balance of surprise was neutral to slightly positive, with most companies reporting earnings above the previous corresponding period, and there were more upgradesthan downgrades to forecast earnings.

"Thus overall, the reporting season confirmed our belief that earnings momentum has turned up and that FY2001 represented the trough in earnings."