Sunday, October 19, 2008

ENERGY & FINANCIALS LEAD BAY STREET HIGHER

Roger Biduk writes

The Toronto stock market surged almost 300 points Friday, led by big gains in energy stocks after oil prices turned around following steep losses in the past three sessions.
Banks and insurance companies were also a big reason that Toronto's S&P/TSX composite index came back from a morning deficit of about 200 points to close up 292.52 points at 9,562.49.

The Toronto market ended the week up a healthy 497.33 points or 5.5 per cent, with financials up 10 per cent in the wake of an announcement that Ottawa will buy up to $25 billion in mortgages from the banks and shift them to Canada Mortgage and Housing Corp.
But the main TSX index is down about 19 per cent since the first of the month.
The TSX Venture Exchange gained 8.33 points to 946.12, while the Canadian dollar edged 0.38 cent lower to 84.25 cents U.S.

On the TSX, the energy sector was up 6.9 cent after three days of oil-price declines that took crude below US$70 a barrel for the first time since August 2007.
The November crude contract on the New York Mercantile Exchange gained $2 to US$71.85 a barrel ahead of OPEC's special meeting on prices next week.
EnCana Corp. (TSX:ECA) advanced $3.38 to $49.88 and Suncor Inc. (TSX:SU) gained $2.02 to $26.22.
The TSX base metals sector moved ahead five per cent as Teck Cominco Ltd. (TCK.B) jumped $1.29 to $16.39.

Bullion was down $16.80 at US$787.70 an ounce,sending the TSX gold sector down 2.65 per cent. Barrick Gold Corp. (TSX:ABX) declined $1.03 to $28.01.

Roger Biduk writes:

The financial sector 1.8 rose per cent as National Bank (TSX:NA) added $2.45 to $46.39 and Royal Bank (TSX:RY) improved 59 cents to $46.25.

In Canadian corporate news, the Priszm Income Fund (TSX:QSR.UN) suffered a 24 per cent shrinkage in summer-quarter net profit to $3.5 million as sales at its KFC, Taco Bell and Pizza Hut restaurants declined 1.9 per cent to $95.9 million. Priszm units ran ahead 59 cents or 40 per cent to $2.06.
Allen-Vanguard Corp. (TSX:VRS) shares were up six cents or 26 per cent to 29 cents after the maker of high-hazard protective equipment announced a contract to provide specialized training to the U.S. Department of Defence valued at $100 million over five years.

On the TSX, advances beat declines 1,056 to 504 with 210 unchanged as 488.9 million shares traded worth $7 billion.

Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.

www.rogerbiduk.ca
www.rogerbiduk.wordpress.com

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