Instinet Expects Sharply Lower Profit

Instinet Group, which runs the world’s No. 1 alternative stock trading network, said Monday its third-quarter profit would be sharply lower than expected as trading volume was hurt by the shutdown of U.S. markets after this month’s terrorist attacks.

Instinet (ticker symbol: INET), a majority-owned unit of Reuters Group (RTRSY), said the four-day trading hiatus after the attacks lowered earnings by about $18 million, or 4 cents a share. The firm now expects third-quarter earnings of 7 cents to 9 cents a share. The forecast excludes a $25-million restructuring charge announced in July.

Despite the warning, Instinet’s stock rose Monday as part of a broad market rebound. Shares of Instinet, which went public in May at $14.50 a share, rose 13 cents to $10.40 on Nasdaq. Reuters’ stock climbed $3.50 to $49.50, also on Nasdaq.