NZ stocks: Warehouse shares rise on hopeful glimmer from Aussie unit

Shares in discount retailer The Warehouse bounced higher after it issued its half year net profit and offered investors a glimmer of hope for its Australian unit.

The benchmark NZSX-50 index was up 6.27 points at 3156.03, while the NZSX-All capital index was up 0.03 of a point at 1027.14.

Market turnover was a healthy $120.7 million, including $63.3m worth of Telecom, its shares down 1c at 625.

The Warehouse's shares spiked 17c to 411 after it posted a December half profit of $53.88m, which was at the higher end of guidance. It forecast full year net earnings of between $66m and $71m.

It said earnings at its New Zealand Red Sheds were down, while the Australian Yellow Sheds had improved.

ABN Amro Craigs broker James Lock said investors were looking for any hint of a turnaround in The Warehouse, especially from its Australian unit.

"The share price has been battered around for a while and now there's a glimmer of hope for investors (from the Australian operation)," Mr Lock told NZPA today.

He said several stocks came under selling pressure today, from profit taking, the higher interest rate regime and the New Zealand dollar's appreciation.

"It was an interesting day... but some of those second line stocks were down a bit," Mr Lock said.

"I think the market was having a good solid pause here and letting off some steam," he said.

High profile stocks Contact Energy, down 16c at 701, a level last seen in early February, and Carter Holt Harvey, down 1c at 222, followed Telecom's lead.

Rural services firm Wrightson appointed three Williams & Kettle-nominated, or independent, directors to its board.

Wrightson agreed to the appointment as part of its $4.70 a share takeover offer for W&K. It now owns 93.7 percent of W & K, which means it can compulsorily acquire the balance. Wrightson was up 2c at 203, while W&K was static at 449.

Other shares on the move included: Air NZ down 3c at 158, Auckland International Airport up 13c at 863, Fisher & Paykel Appliances up 5c at 310, F&P Healthcare up 11c at 303, Lion Nathan up 15c at 800, and Steel & Tube up 6c at 511.

Stocks to go ex-dividend were: Waste Management (ex-div at 16.7cps) down 6c to 645, Ebos (8cps) down 8c at 452, and Pyne Gould Guinness (4cps) down 6c at 203, and Ports of Auckland (15cps) down 10c at 660.

Property firm Blue Chip New Zealand, unchanged at 105, is in preliminary talks to buy a chunk of Auckland retail property developer Ingot Holdings.

Of the 154 stocks to change hands were 47 rises and 63 falls.

Overseas, the Dow Jones lost 75.97 points to 10,775.54, the Standard & Poor's 500 was down 9.17 points at 1200.08, and the Nasdaq Composite was down 18.12 points at 2041.60.

- NZPA