Roger Biduk writes:
The Toronto stock market soared more than 500 points Friday, led by a big jump in bank stocks ahead of a wave of earnings reports next week.
The S&P/TSX composite index ran ahead for a sixth straight session, up 516.85 points or 5.9 per cent to 9,270.62.
The main index rose 1,116 points or almost 14 per cent this week as investors also snapped up beaten-down commodity stocks.
The TSX Venture Exchange rose 18.39 points to 766.62.
The CDN$ was down 0.39 cent to 80.84 cents U.S. as Prime Minister Stephen Harper has guaranteed the survival of his minority Conservative government for at least another week by pushing back a confidence vote.
Opposition leaders were expected to spend the weekend negotiating the details of a parallel government that could wrest power from the Tories less than two months after the Oct. 14 general election.
The TSX financial sector rose 12 per cent as investors feel better about earnings coming out next week from most of the big banks. Four of the big six prepared investors with pre-earnings writedown warnings.
Royal Bank (TSX:RY), which reports Thursday, gained $4.30 or 11 per cent to $43.18 while Scotiabank (TSX:BNS), releasing results Tuesday, advanced $4.25 or 13 per cent to $37.
Roger Biduk writes:
The TSX energy sector was up 2.55 per cent as the front-month crude oil price slipped a penny to US$54.43 on the New York Mercantile Exchange with OPEC officials sending mixed messages about a production cut before a regularly scheduled meeting in December.
Investors will be watching whether the Organization of Petroleum Exporting Countries reduces output quotas at an informal meeting Saturday in Cairo, Egypt.
EnCana Corp. (TSX:ECA) improved $3.50 to $60 while Petro-Canada (TSX:PCA) ran ahead $3.73 or 12.4 per cent to $33.73.
The telecom sector was up 4.35 per cent after two days of declines in the wake of the announcement by BCE Inc. that the takeover of the telecom giant by a group led by the Ontario Teachers' Pension Plan is in serious jeopardy. BCE declined 28 cents to $24.95 - down sharply from Tuesday's close of $38.35 - while Telus Corp. (TSX:T) gained $2.53 to $39.22.
The base metals sector rose 0.8 per cent, capping a week of strong gains. Sherritt International bounded 57 cents or 20 per cent to $3.44.
Cameco Corp. (TSX:CCO) gained 50 cents to $22.15 after it said it is suspending production of uranium hexafluoride at its complex in Port Hope, Ont., as a result of "unreliable and expensive" deliveries of hydrofluoric acid.
On the TSX, advances beat declines 857 to 417 with 181 unchanged.
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Saturday, November 29, 2008
Wednesday, November 26, 2008
Roger Biduk - Metals & Energy Bolster Bay Street
Roger Biduk writes:
The Toronto stock market surged 200 points Wednesday thanks to substantial runups in energy and base metals stocks, but gains would have been much higher if not for a big drop in BCE Inc. (TSX:BCE) shares on word its buyout is in serious trouble.
Toronto's S&P/TSX composite index gained 200.66 points to 8,643.52.
The TSX Venture Exchange moved up 11.43 points to 731.39. The Canadian dollar declined 0.34 cent at 81.29 cents US.
BCE shares plunged $13.10 or 34 per cent to $25.25 on news that the Montreal-based company couldn't meet certain solvency tests in its agreement to be bought by an investor group led by the Ontario Teachers' Pension Plan.
The telecom sector gave back more than 10 per cent with Telus Corp. (TSX:T) down 76 cents to $38.09 and Rogers Communications (TSX:RCI.B) fell 86 cents to $34.34.
On the TSX, the energy sector was ahead 7.66 per cent as the January crude oil contract gained $3.67 to US$54.44 per barrel on the New York Mercantile Exchange. A large interest rate cut in China and news of a possible Russian output cut countered a new government inventory report showing far more crude and gasoline in storage in the U.S. than was expected.
EnCana Corp. (TSX:ECA) improved $4.35 to $56.33 while Canadian Natural Resources (TSX:CNQ) ran ahead $5.25 to $49.
The base metals sector surged 16 per cent as Teck Cominco (TSX:TCK.B) advanced $1.08 or 25.7 per cent to $5.27 and HudBay Minerals (TSX:HBM) ran ahead 45 cents or 13.8 per cent to $3.70.
Strong gains in the tech sector also boosted the TSX as Research In Motion Ltd. (TSX:RIM) moved up $4.23 to $55.
Financials gained one per cent after National Bank of Canada (TSX:NA) said it expects to take fourth-quarter charges of $237 million. Shares in the country's sixth-largest bank declined $1.40 to $39.04
Bank of Montreal (TSX:BMO) deteriorated 66 cents to $34.29, giving up most of Tuesday's modest rise in the wake of fourth-quarter results showing net income up 24 per cent from a year ago but TD Bank (TSX:TD) rose 84 cents to $41.73.
Manulife Financial Corp. (TSX:MFC) shares gained $1.18 to $20.84 after it announced it has settled a lawsuit against French bank Societe Generale over losses from Portus Alternative Asset Management Inc., a failed Canadian hedge fund company.
Garda World Security Corp. (TSX:GW) gained 50 cents or 66.67 per cent to $1.25 on the TSX - down from $19 last spring - after it said its armoured-car and security-guard services are "experiencing sustained performance despite the economic slowdown."
On the TSX, advances led declines 712 to 544 with 208 unchanged.
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The Toronto stock market surged 200 points Wednesday thanks to substantial runups in energy and base metals stocks, but gains would have been much higher if not for a big drop in BCE Inc. (TSX:BCE) shares on word its buyout is in serious trouble.
Toronto's S&P/TSX composite index gained 200.66 points to 8,643.52.
The TSX Venture Exchange moved up 11.43 points to 731.39. The Canadian dollar declined 0.34 cent at 81.29 cents US.
BCE shares plunged $13.10 or 34 per cent to $25.25 on news that the Montreal-based company couldn't meet certain solvency tests in its agreement to be bought by an investor group led by the Ontario Teachers' Pension Plan.
The telecom sector gave back more than 10 per cent with Telus Corp. (TSX:T) down 76 cents to $38.09 and Rogers Communications (TSX:RCI.B) fell 86 cents to $34.34.
On the TSX, the energy sector was ahead 7.66 per cent as the January crude oil contract gained $3.67 to US$54.44 per barrel on the New York Mercantile Exchange. A large interest rate cut in China and news of a possible Russian output cut countered a new government inventory report showing far more crude and gasoline in storage in the U.S. than was expected.
EnCana Corp. (TSX:ECA) improved $4.35 to $56.33 while Canadian Natural Resources (TSX:CNQ) ran ahead $5.25 to $49.
The base metals sector surged 16 per cent as Teck Cominco (TSX:TCK.B) advanced $1.08 or 25.7 per cent to $5.27 and HudBay Minerals (TSX:HBM) ran ahead 45 cents or 13.8 per cent to $3.70.
Strong gains in the tech sector also boosted the TSX as Research In Motion Ltd. (TSX:RIM) moved up $4.23 to $55.
Financials gained one per cent after National Bank of Canada (TSX:NA) said it expects to take fourth-quarter charges of $237 million. Shares in the country's sixth-largest bank declined $1.40 to $39.04
Bank of Montreal (TSX:BMO) deteriorated 66 cents to $34.29, giving up most of Tuesday's modest rise in the wake of fourth-quarter results showing net income up 24 per cent from a year ago but TD Bank (TSX:TD) rose 84 cents to $41.73.
Manulife Financial Corp. (TSX:MFC) shares gained $1.18 to $20.84 after it announced it has settled a lawsuit against French bank Societe Generale over losses from Portus Alternative Asset Management Inc., a failed Canadian hedge fund company.
Garda World Security Corp. (TSX:GW) gained 50 cents or 66.67 per cent to $1.25 on the TSX - down from $19 last spring - after it said its armoured-car and security-guard services are "experiencing sustained performance despite the economic slowdown."
On the TSX, advances led declines 712 to 544 with 208 unchanged.
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Tuesday, November 25, 2008
Roger Biduk - Flat Day on Bay Street
Roger Biduk writes:
A mixture of both positive and negative economic news left investors cautious on Tuesday as they weighed the latest U.S. government plan to aid consumer lending companies.
Toronto's S&P/TSX composite index rose 1.99 points to 8,442.86 as oil prices declined. The TSX Venture Exchange fell 2.83 to 719.96.
The energy sector was behind 1.2 per cent as the near-month crude oil contract slipped $3.73 to close at US$50.77 per barrel on the New York Mercantile Exchange.
The Canadian dollar rose 0.63 cents to 81.63 cents US after surging 2.7 cents Monday.
TSX financial stocks rose 0.48 per cent after Bank of Montreal (TSX:BMO) reported fourth-quarter results with no credit-market booby-traps and net income of $560 million, up 24 per cent from a year ago. BMO shares gained 83 cents to $34.95.
The gold sector was down 0.7 per cent, as the bullion contract fell $1 to US$818.50 an ounce, a decline that was eased somewhat by the sliding value of the greenback.
The information technology sector was the greatest decliner, falling 2.9 per cent, as Research In Motion (TSX:RIM) lost $4.50 to $50.77.
Shares in Denison Mines Corp. (TSX:DML), a mid-sized uranium producer and explorer, fell 24 per cent to $1.02 after the company and its partners said they are postponing development of a uranium project in Saskatchewan because of weak economic conditions.
In Canadian corporate news, the children of Canwest Global Communications Corp. founder Izzy Asper have expanded their holdings of the media company's subordinate voting shares (TSX:CGS). Leonard and David Asper said recent purchases of 4.5 million of the beaten-down subordinated shares were "for investment purposes." Canwest shares were down eight cents to 61 cents.
Shares of Protox Therapeutics Inc. (TSX:PRX), a Vancouver-based drug developer, rose more than 33 per cent after the company said it has received positive data from its Phase 2 study of a key drug for benign prostatic hyperplasia, a painful urological ailment. The company was up 11 cents to 44 cents.
BHP Billiton Ltd. abandoned its hostile takeover bid for rival Rio Tinto Ltd., blaming the global economic downturn and plunging commodity prices. Rio's holdings include the former Alcan, which is now a wholly owned subsidiary of the Anglo-Australian mining company.
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A mixture of both positive and negative economic news left investors cautious on Tuesday as they weighed the latest U.S. government plan to aid consumer lending companies.
Toronto's S&P/TSX composite index rose 1.99 points to 8,442.86 as oil prices declined. The TSX Venture Exchange fell 2.83 to 719.96.
The energy sector was behind 1.2 per cent as the near-month crude oil contract slipped $3.73 to close at US$50.77 per barrel on the New York Mercantile Exchange.
The Canadian dollar rose 0.63 cents to 81.63 cents US after surging 2.7 cents Monday.
TSX financial stocks rose 0.48 per cent after Bank of Montreal (TSX:BMO) reported fourth-quarter results with no credit-market booby-traps and net income of $560 million, up 24 per cent from a year ago. BMO shares gained 83 cents to $34.95.
The gold sector was down 0.7 per cent, as the bullion contract fell $1 to US$818.50 an ounce, a decline that was eased somewhat by the sliding value of the greenback.
The information technology sector was the greatest decliner, falling 2.9 per cent, as Research In Motion (TSX:RIM) lost $4.50 to $50.77.
Shares in Denison Mines Corp. (TSX:DML), a mid-sized uranium producer and explorer, fell 24 per cent to $1.02 after the company and its partners said they are postponing development of a uranium project in Saskatchewan because of weak economic conditions.
In Canadian corporate news, the children of Canwest Global Communications Corp. founder Izzy Asper have expanded their holdings of the media company's subordinate voting shares (TSX:CGS). Leonard and David Asper said recent purchases of 4.5 million of the beaten-down subordinated shares were "for investment purposes." Canwest shares were down eight cents to 61 cents.
Shares of Protox Therapeutics Inc. (TSX:PRX), a Vancouver-based drug developer, rose more than 33 per cent after the company said it has received positive data from its Phase 2 study of a key drug for benign prostatic hyperplasia, a painful urological ailment. The company was up 11 cents to 44 cents.
BHP Billiton Ltd. abandoned its hostile takeover bid for rival Rio Tinto Ltd., blaming the global economic downturn and plunging commodity prices. Rio's holdings include the former Alcan, which is now a wholly owned subsidiary of the Anglo-Australian mining company.
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Monday, November 24, 2008
Roger Biduk - Commodites & Confidence Lead Bay Street Higher
Roger Biduk writes:
North American stock markets higher Monday as commodities strengthened and investor confidence was bolstered by the U.S. government's bailout plan for Citigroup.
Toronto's S&P/TSX composite index gained 285.48 points to 8,440.87, and the Canadian dollar surged 2.70 cents to 81 cents US on a weaker greenback.
The TSX Venture Exchange rose 18.62 to 722.79.
Leading the TSX gain were energy stocks, ahead 7.6 per cent, on a boost from a higher price for oil. The January crude contract was up $4.57 to close at US$54.50 a barrel on the Nymex.
BCE Inc. shares (TSX:BCE) rose nearly 10 per cent from the Citigroup arrangement on optimism that the $52-billion purchase of Canada's largest telecom company will go ahead. The bank is a lead lender in the transaction, and BCE stock gained $3.39 to $37.94.
On the TSX, financials stocks gained 4.7 per cent after Royal Bank (TSX:RY) said it will report a profit of $1.1 billion. That's down 15 per cent from a year ago on charges related to the shakeup in financial markets but all of the Canadian bank stocks have already declined in the past week in anticipation of lowered profits. Shares in Canada's largest bank, which reports Dec. 5, slipped at the open, then shifted higher, up $2.52 at $39.
Last week, TD Bank (TSX:TD) and Scotiabank (TSX:BNS) previewed their expected losses for the fourth quarter, though both won't release their full results until next week. TD announced after the markets closed Monday that it will raise $1.2 billion in an issue of common shares. The bank said it will issue 30.4 million shares at a price of $39.50 per share, a discount to Monday's closing price of $42.90 and but above a 52-week low of $38.33 established earlier in the day.
Roger Biduk writes:
Mining stocks were up 6.8 per cent. Hudbay Minerals (TSX:HBM) moved up five per cent, rising 15 cents to $3.31.
The gold index gained 1.5 per cent as December bullion closed ahead $27.70 to US$819.50 an ounce.
The Conference Board of Canada reported that its consumer confidence index fell again this month, losing 2.9 points to 71. The think-tank notes that consumer sentiment as at "depths previously reached only in 1982 and 1990, which were both periods of recession."
Investors cheered the prospect of fiscal stimulus for the overall economy. In Canada, Prime Minister Stephen Harper and Finance Minister Jim Flaherty have indicated they plan deficit spending.
Gran Tierra Energy (TSX:GTE) shares fell eight per cent after the company suspended production in two oilfields in southern Colombia due to a general strike in the region. Gran Tierra stock crumbled throughout the day before returning to where it opened, closing even at $2.94.
NovaGold Resources Inc. (TSX:NG) shares plummeted 67 per cent after the company said it's suspending operations at Rock Creek because it has been unable to raise new money and faces being unable to meet its financial obligations next month. Stock slid $1.48 to 72 cents.
Health care company Johnson & Johnson plans to acquire Omrix Biopharmaceuticals Inc. for US$438 million - or $25 per share - in a plan to expand its surgical product unit.
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North American stock markets higher Monday as commodities strengthened and investor confidence was bolstered by the U.S. government's bailout plan for Citigroup.
Toronto's S&P/TSX composite index gained 285.48 points to 8,440.87, and the Canadian dollar surged 2.70 cents to 81 cents US on a weaker greenback.
The TSX Venture Exchange rose 18.62 to 722.79.
Leading the TSX gain were energy stocks, ahead 7.6 per cent, on a boost from a higher price for oil. The January crude contract was up $4.57 to close at US$54.50 a barrel on the Nymex.
BCE Inc. shares (TSX:BCE) rose nearly 10 per cent from the Citigroup arrangement on optimism that the $52-billion purchase of Canada's largest telecom company will go ahead. The bank is a lead lender in the transaction, and BCE stock gained $3.39 to $37.94.
On the TSX, financials stocks gained 4.7 per cent after Royal Bank (TSX:RY) said it will report a profit of $1.1 billion. That's down 15 per cent from a year ago on charges related to the shakeup in financial markets but all of the Canadian bank stocks have already declined in the past week in anticipation of lowered profits. Shares in Canada's largest bank, which reports Dec. 5, slipped at the open, then shifted higher, up $2.52 at $39.
Last week, TD Bank (TSX:TD) and Scotiabank (TSX:BNS) previewed their expected losses for the fourth quarter, though both won't release their full results until next week. TD announced after the markets closed Monday that it will raise $1.2 billion in an issue of common shares. The bank said it will issue 30.4 million shares at a price of $39.50 per share, a discount to Monday's closing price of $42.90 and but above a 52-week low of $38.33 established earlier in the day.
Roger Biduk writes:
Mining stocks were up 6.8 per cent. Hudbay Minerals (TSX:HBM) moved up five per cent, rising 15 cents to $3.31.
The gold index gained 1.5 per cent as December bullion closed ahead $27.70 to US$819.50 an ounce.
The Conference Board of Canada reported that its consumer confidence index fell again this month, losing 2.9 points to 71. The think-tank notes that consumer sentiment as at "depths previously reached only in 1982 and 1990, which were both periods of recession."
Investors cheered the prospect of fiscal stimulus for the overall economy. In Canada, Prime Minister Stephen Harper and Finance Minister Jim Flaherty have indicated they plan deficit spending.
Gran Tierra Energy (TSX:GTE) shares fell eight per cent after the company suspended production in two oilfields in southern Colombia due to a general strike in the region. Gran Tierra stock crumbled throughout the day before returning to where it opened, closing even at $2.94.
NovaGold Resources Inc. (TSX:NG) shares plummeted 67 per cent after the company said it's suspending operations at Rock Creek because it has been unable to raise new money and faces being unable to meet its financial obligations next month. Stock slid $1.48 to 72 cents.
Health care company Johnson & Johnson plans to acquire Omrix Biopharmaceuticals Inc. for US$438 million - or $25 per share - in a plan to expand its surgical product unit.
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Saturday, November 22, 2008
Roger Biduk - Gold & Materials Lead as Bay Street Soars
Roger Biduk writes:
Stock markets in Canada and the United States found their way towards triple-digit gains after enduring a session that spent most of the day searching for direction.
Both sides of the border saw the major indexes jump more than five per cent.
In Toronto the rising price of gold led a heavily traded session that also included enthusiastic gains in mining and materials stocks. The S&P/TSX composite index rose 430.63 points to 8,155.39. The TSX Venture Exchange rose 12.22 points to 704.17.
The Canadian dollar closed at 78.30 cents US, up 0.99 of a cent after Statistics Canada reported the headline inflation rate eased last month to 2.6 per cent, from 3.4 per cent in September.
On the TSX, bank and insurance stocks were up 0.3 per cent as TD Bank (TSX:TD) shares continued to decline, down a further eight per cent to $40.13. The bank disclosed Thursday a $350 million in quarterly credit trading losses.
The gold index was the major gainer, up 27.2 per cent, as Barrick Gold Corp. (TSX:ABX) was ahead $8.70 to $35.50.
Roger Biduk writes:
The mining index rose 18.1 per cent. HudBay Minerals Inc. (TSX:HBM) and Lundin Mining Corp. (TSX:LUN) plan to merge in an all-stock deal worth $814 million, based on current market prices. HudBay shares were down 40 per cent to $3.16 and Lundin rose nearly four per cent to $1.05.
Energy stocks were also higher, up 10 per cent as the January crude contract rose 51 cents to US$49.93 per barrel. Oil prices were still 13 per cent lower compared to last week's closing price.
In earnings, Sears Canada Inc. (TSX:SCC) reported a third-quarter profit of $68.9 million as same-store sales increased 0.9 per cent from the comparable period a year ago despite a tough retail environment. Its shares increased 20 cents to $16.74.
Catalyst Paper Corp. (TSX:CTL) fell five cents to 25 cents after the company announced a tentative four-year contract agreement with the Communications, Energy and Paperworkers Union of Canada at its B.C. pulp and paper operations.
Research in Motion (TSX:RIM) shares were ahead $3.10 to $57.09 on the day the company debuted the BlackBerry Storm touch-screen mobile device in North America - a product intended to steal market share from Apple Inc.'s iPhone.
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Stock markets in Canada and the United States found their way towards triple-digit gains after enduring a session that spent most of the day searching for direction.
Both sides of the border saw the major indexes jump more than five per cent.
In Toronto the rising price of gold led a heavily traded session that also included enthusiastic gains in mining and materials stocks. The S&P/TSX composite index rose 430.63 points to 8,155.39. The TSX Venture Exchange rose 12.22 points to 704.17.
The Canadian dollar closed at 78.30 cents US, up 0.99 of a cent after Statistics Canada reported the headline inflation rate eased last month to 2.6 per cent, from 3.4 per cent in September.
On the TSX, bank and insurance stocks were up 0.3 per cent as TD Bank (TSX:TD) shares continued to decline, down a further eight per cent to $40.13. The bank disclosed Thursday a $350 million in quarterly credit trading losses.
The gold index was the major gainer, up 27.2 per cent, as Barrick Gold Corp. (TSX:ABX) was ahead $8.70 to $35.50.
Roger Biduk writes:
The mining index rose 18.1 per cent. HudBay Minerals Inc. (TSX:HBM) and Lundin Mining Corp. (TSX:LUN) plan to merge in an all-stock deal worth $814 million, based on current market prices. HudBay shares were down 40 per cent to $3.16 and Lundin rose nearly four per cent to $1.05.
Energy stocks were also higher, up 10 per cent as the January crude contract rose 51 cents to US$49.93 per barrel. Oil prices were still 13 per cent lower compared to last week's closing price.
In earnings, Sears Canada Inc. (TSX:SCC) reported a third-quarter profit of $68.9 million as same-store sales increased 0.9 per cent from the comparable period a year ago despite a tough retail environment. Its shares increased 20 cents to $16.74.
Catalyst Paper Corp. (TSX:CTL) fell five cents to 25 cents after the company announced a tentative four-year contract agreement with the Communications, Energy and Paperworkers Union of Canada at its B.C. pulp and paper operations.
Research in Motion (TSX:RIM) shares were ahead $3.10 to $57.09 on the day the company debuted the BlackBerry Storm touch-screen mobile device in North America - a product intended to steal market share from Apple Inc.'s iPhone.
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Friday, November 21, 2008
Roger Biduk - Brutal Day on Bay Street
Roger Biduk writes:
Stocks faced another brutal day across North America, but it was the Toronto Stock Exchange which was hardest hit - plunging more than 750 points Thursday to its lowest level in five years.
Toronto's S&P/TSX composite index was down nine per cent on bad news across key sectors like banking and energy. The main index lost 765.80 points to end the session at 7,724.76.
Canada's most-watched stock index hasn't fallen this low since late October 2003, and it's a drop of 47 per cent from the TSX peak just five months ago at 15,073.
The TSX Venture Exchange tumbled 38.14 points to 691.95.
The Canadian dollar was down 2.52 cents to 77.31 cents US, after dropping to an intraday low of 77.22.
The TSX was hit especially hard on troubling news from many of its major sectors.
Toronto energy stocks fell 14.5 per cent as crude oil dipped under the US$50-a-barrel mark for the first time since January 2007. The price was down 7.5 per cent, or $4, to close at US$49.62 a barrel on the New York Mercantile Exchange.
Financial stocks were down 12.2 per cent after TD Bank (TSX:TD) disclosed $350 million in quarterly credit trading losses. Its shares lost $6.36 to $43.57, and all the other big Canadian banks were also sharply lower.
Royal Bank (TSX:RY) lost 13 per cent of its value to $35.65 and CIBC (TSX:CM) fell 12 per cent to $42.28.
Metal stocks slid 12.1 per cent as Teck Cominco Ltd. (TSX:TCK.B) was down 21 per cent to $4.10 after it suspended dividends on its common shares to help cut debt taken on for the US$14-billion takeover of the Fording Canadian Coal Trust.
The gold sector was the lone gainer, up 2.6 per cent, as the December bullion contract rose $12.70 to close at $748.70 an ounce.
Kinross Gold Corp. (TSX:K) rose three cents to $13.97 on word it is paying US$250 million to buy the Lobo-Marte gold site in Chile from Teck Cominco and Anglo American PLC.
Statistics Canada says wholesale sales increased 1.5 per cent to $46.3 billion in September, boosted largely by a partial recovery in the automotive sector.
Other big movers included Nortel Networks (TSX:NT), down 16 per cent to hit a new low of 52 cents.
March Networks (TSX:MN) says a bank in Latin America signed a $6 million deal to provide networked video recording systems and investigation software for use at more than 1,900 bank branches and automated teller machines. Shares were down three cents to $1.84.
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Stocks faced another brutal day across North America, but it was the Toronto Stock Exchange which was hardest hit - plunging more than 750 points Thursday to its lowest level in five years.
Toronto's S&P/TSX composite index was down nine per cent on bad news across key sectors like banking and energy. The main index lost 765.80 points to end the session at 7,724.76.
Canada's most-watched stock index hasn't fallen this low since late October 2003, and it's a drop of 47 per cent from the TSX peak just five months ago at 15,073.
The TSX Venture Exchange tumbled 38.14 points to 691.95.
The Canadian dollar was down 2.52 cents to 77.31 cents US, after dropping to an intraday low of 77.22.
The TSX was hit especially hard on troubling news from many of its major sectors.
Toronto energy stocks fell 14.5 per cent as crude oil dipped under the US$50-a-barrel mark for the first time since January 2007. The price was down 7.5 per cent, or $4, to close at US$49.62 a barrel on the New York Mercantile Exchange.
Financial stocks were down 12.2 per cent after TD Bank (TSX:TD) disclosed $350 million in quarterly credit trading losses. Its shares lost $6.36 to $43.57, and all the other big Canadian banks were also sharply lower.
Royal Bank (TSX:RY) lost 13 per cent of its value to $35.65 and CIBC (TSX:CM) fell 12 per cent to $42.28.
Metal stocks slid 12.1 per cent as Teck Cominco Ltd. (TSX:TCK.B) was down 21 per cent to $4.10 after it suspended dividends on its common shares to help cut debt taken on for the US$14-billion takeover of the Fording Canadian Coal Trust.
The gold sector was the lone gainer, up 2.6 per cent, as the December bullion contract rose $12.70 to close at $748.70 an ounce.
Kinross Gold Corp. (TSX:K) rose three cents to $13.97 on word it is paying US$250 million to buy the Lobo-Marte gold site in Chile from Teck Cominco and Anglo American PLC.
Statistics Canada says wholesale sales increased 1.5 per cent to $46.3 billion in September, boosted largely by a partial recovery in the automotive sector.
Other big movers included Nortel Networks (TSX:NT), down 16 per cent to hit a new low of 52 cents.
March Networks (TSX:MN) says a bank in Latin America signed a $6 million deal to provide networked video recording systems and investigation software for use at more than 1,900 bank branches and automated teller machines. Shares were down three cents to $1.84.
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Wednesday, November 19, 2008
Roger Biduk - Financials & Metals Tank Bay Street
Roger Biduk:
North American stock markets fell sharply again Wednesday as investor confidence was eroded by bad economic data and pessimism over the prospects of a U.S. bailout for the Big Three automakers.
Wall Street stocks were slammed the hardest, hitting levels not seen since 2003.
In Toronto, all of the sectors were lower, led by diversified metals and financials stocks.
The main S&P/TSX composite index fell by 345.17 points to 8,490.56, a drop of nearly four per cent.
The Canadian dollar was at 79.83 cents US, down 1.48 cents, and the TSX Venture Exchange lost 20.16 points to 730.09.
TSX financials stocks took a beating, down 4.9 per cent, after the Bank of Nova Scotia (TSX:BNS) warned Tuesday of a bigger-than-expected $595-million hit to its quarterly earnings caused by financial-market upheaval.
The other banks are expected to suffer similarly to Scotiabank when they issue their fourth-quarter results, starting next week. Scotia's shares were down $1.93 to $35.24.
Bank of Canada governor Mark Carney strongly indicated Wednesday that the central bank will cut interest rates further next month in an effort to stimulate the economy. Carney told a luncheon in London that the economy is slowing more than previously thought, and inflation is less of a concern.
The TSX diversified metals sector slid 11.5 per cent, and Teck Cominco Ltd. (TSX:TCK.B) slid 15 per cent to $5.22.
Energy stocks were down 3.8 per cent as crude oil lost 77 cents to close at US$53.62 a barrel on the New York Mercantile Exchange.
The gold sector trekked 2.8 per cent lower as gold futures ended ahead for the first session this week on U.S. dollar weakness.
The December bullion contract closed up $3.30 to US$736 an ounce.
In economic news, Statistics Canada's composite leading index - an indicator of future activity - fell 0.4 per cent in October. It was the biggest decline since the early-1990s recession, after a 0.3 per cent drop in September.
In earnings news, supermarket operator Metro Inc. (TSX:MRU.A) rang up $72.3 million in summer-quarter profit, up 25.5 per cent from year-ago earnings that were reduced by the integration of A&P stores. Sales were up 1.8 per cent from a year ago. Metro shares were at $33.
The Resolve Business Outsourcing Income Fund (TSX:RBO.UN) is suspending distributions to investors. The trusts units plunged 55 per cent, or $1.94, to $1.56.
Norsemont Mining Inc. (TSX:NOM) says its board has set up a special committee to deal with "recent unsolicited expressions of interest to acquire the company" and shares were ahead 15 per cent, or 25 cents, to $1.95.
Forestry company Tembec Inc. (TSX:TMB) fell to a quarterly loss of $4 million from year-earlier profit of $22 million, as sales declined to $629 million from $675 million. Shares dropped a penny to $1.56.
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North American stock markets fell sharply again Wednesday as investor confidence was eroded by bad economic data and pessimism over the prospects of a U.S. bailout for the Big Three automakers.
Wall Street stocks were slammed the hardest, hitting levels not seen since 2003.
In Toronto, all of the sectors were lower, led by diversified metals and financials stocks.
The main S&P/TSX composite index fell by 345.17 points to 8,490.56, a drop of nearly four per cent.
The Canadian dollar was at 79.83 cents US, down 1.48 cents, and the TSX Venture Exchange lost 20.16 points to 730.09.
TSX financials stocks took a beating, down 4.9 per cent, after the Bank of Nova Scotia (TSX:BNS) warned Tuesday of a bigger-than-expected $595-million hit to its quarterly earnings caused by financial-market upheaval.
The other banks are expected to suffer similarly to Scotiabank when they issue their fourth-quarter results, starting next week. Scotia's shares were down $1.93 to $35.24.
Bank of Canada governor Mark Carney strongly indicated Wednesday that the central bank will cut interest rates further next month in an effort to stimulate the economy. Carney told a luncheon in London that the economy is slowing more than previously thought, and inflation is less of a concern.
The TSX diversified metals sector slid 11.5 per cent, and Teck Cominco Ltd. (TSX:TCK.B) slid 15 per cent to $5.22.
Energy stocks were down 3.8 per cent as crude oil lost 77 cents to close at US$53.62 a barrel on the New York Mercantile Exchange.
The gold sector trekked 2.8 per cent lower as gold futures ended ahead for the first session this week on U.S. dollar weakness.
The December bullion contract closed up $3.30 to US$736 an ounce.
In economic news, Statistics Canada's composite leading index - an indicator of future activity - fell 0.4 per cent in October. It was the biggest decline since the early-1990s recession, after a 0.3 per cent drop in September.
In earnings news, supermarket operator Metro Inc. (TSX:MRU.A) rang up $72.3 million in summer-quarter profit, up 25.5 per cent from year-ago earnings that were reduced by the integration of A&P stores. Sales were up 1.8 per cent from a year ago. Metro shares were at $33.
The Resolve Business Outsourcing Income Fund (TSX:RBO.UN) is suspending distributions to investors. The trusts units plunged 55 per cent, or $1.94, to $1.56.
Norsemont Mining Inc. (TSX:NOM) says its board has set up a special committee to deal with "recent unsolicited expressions of interest to acquire the company" and shares were ahead 15 per cent, or 25 cents, to $1.95.
Forestry company Tembec Inc. (TSX:TMB) fell to a quarterly loss of $4 million from year-earlier profit of $22 million, as sales declined to $629 million from $675 million. Shares dropped a penny to $1.56.
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Roger Biduk - Small Gains for Bay Street
Roger Biduk writes:
A session of see-saw trading ended in positive territory for North American stock markets as investors conjured up enough optimism to drive overall sentiment higher.
But the gains weren't without a struggle - one that lasted late into the afternoon - as traders weighed dismal home building numbers, and positive outlooks from Home Depot and Hewlett-Packard.
Toronto's S&P/TSX composite index closed ahead 40.28 points at 8,835.73.
The Canadian dollar was at 81.31 cents US, down 0.44 of a cent, and the TSX Venture Exchange dropped 35.54 to 750.25.
The TSX energy sector rose 0.5 per cent as light sweet crude closed below $55 a barrel after hitting a new 22-month low earlier in the day.
Crude was down 56 cents to $54.39 a barrel on the New York Mercantile Exchange.
Information technology stocks moved up four per cent.
Enbridge Inc. (TSX: ENB.TO) said it will invest US$500 million in Enbridge Energy Partners LP, raising its stake in the U.S. pipeline business to 27 per cent. Its shares were down $1.65 cents to $37.50.
Research In Motion (TSX: RIM.TO) was ahead 12 per cent, or $6.40, to $58. An analyst at National Bank suggested that the stock is "not one to give up on" despite lagging consumer spending.
Financials were up one per cent as Royal Bank (TSX: RY.TO) jumped 18 cents to $43.54.
Roger Biduk writes:
On the downside, gold stocks fell 0.7 per cent as the December bullion delivery declined $9.30 to US$732.70.
George Weston Ltd. (TSX: WN.TO) - majority owner of Loblaw Cos. (TSX: L.TO) - reported flat third-quarter profits of $179 million, as sales increased 4.4 per cent from a year earlier to $10.61 billion. Shares in George Weston were down 48 cents to $62.40.
Shares in TransCanada Corp. (TSX: TRP.TO) dropped nearly five per cent after Monday's announcement of bought-deal issue of $1 billion in new shares to pay debt and fund capital projects including its Keystone Pipeline. Shares were down $1.68 to $32.85.
In other corporate news, Telus Corp. (TSX: T.TO), Canada's second-largest telecom operator, says it will invest $100 million over three years on a health technology division. Telus shares gained 54 cents to $38.52.
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A session of see-saw trading ended in positive territory for North American stock markets as investors conjured up enough optimism to drive overall sentiment higher.
But the gains weren't without a struggle - one that lasted late into the afternoon - as traders weighed dismal home building numbers, and positive outlooks from Home Depot and Hewlett-Packard.
Toronto's S&P/TSX composite index closed ahead 40.28 points at 8,835.73.
The Canadian dollar was at 81.31 cents US, down 0.44 of a cent, and the TSX Venture Exchange dropped 35.54 to 750.25.
The TSX energy sector rose 0.5 per cent as light sweet crude closed below $55 a barrel after hitting a new 22-month low earlier in the day.
Crude was down 56 cents to $54.39 a barrel on the New York Mercantile Exchange.
Information technology stocks moved up four per cent.
Enbridge Inc. (TSX: ENB.TO) said it will invest US$500 million in Enbridge Energy Partners LP, raising its stake in the U.S. pipeline business to 27 per cent. Its shares were down $1.65 cents to $37.50.
Research In Motion (TSX: RIM.TO) was ahead 12 per cent, or $6.40, to $58. An analyst at National Bank suggested that the stock is "not one to give up on" despite lagging consumer spending.
Financials were up one per cent as Royal Bank (TSX: RY.TO) jumped 18 cents to $43.54.
Roger Biduk writes:
On the downside, gold stocks fell 0.7 per cent as the December bullion delivery declined $9.30 to US$732.70.
George Weston Ltd. (TSX: WN.TO) - majority owner of Loblaw Cos. (TSX: L.TO) - reported flat third-quarter profits of $179 million, as sales increased 4.4 per cent from a year earlier to $10.61 billion. Shares in George Weston were down 48 cents to $62.40.
Shares in TransCanada Corp. (TSX: TRP.TO) dropped nearly five per cent after Monday's announcement of bought-deal issue of $1 billion in new shares to pay debt and fund capital projects including its Keystone Pipeline. Shares were down $1.68 to $32.85.
In other corporate news, Telus Corp. (TSX: T.TO), Canada's second-largest telecom operator, says it will invest $100 million over three years on a health technology division. Telus shares gained 54 cents to $38.52.
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Tuesday, November 18, 2008
Roger Biduk - Oil Sinks Bay Street
Roger Biduk writes;
The Toronto stock market ended Monday at its lowest level in three weeks after oil prices tumbled and banking giant Citigroup announced another round of devastating job cuts.
Toronto's S&P/TSX composite index fell 260.51 points to 8,795.45 - its lowest close since Oct. 27.
The TSX Venture Exchange closed down 15.82 to 785.79.
The Canadian dollar was at 81.75 cents US, up 0.15 of a cent.
The TSX financial group led losses down 3.8 per cent. Bank of Montreal (TSX: BMO.TO) fell 3.7 per cent, or $1.55, to $39.90.
The Toronto energy sector was down three per cent after the December crude contract ended the session at a 22-month low on circulating questions about energy demand.
Light sweet crude slid $2.11 to settle at US$55.49 a barrel on the New York Mercantile Exchange.
In downbeat Canadian financial and oilpatch news, the Fort Hills oilsands partners have put off an investment decision on the mine near Fort McMurray, Alta., likely until next year.
The partners - Petro-Canada (TSX: PCA.TO), Teck Cominco Ltd. (TSX: TCK-B.TO) and UTS Energy Corp. (TSX: UTS.TO) - indefinitely shelved a decision on the project's proposed upgrader near Edmonton. Teck Cominco stock was ahead 4.6 per cent, or 29 cents, to $6.64.
Roger Biduk writes:
The gold sector lost 3.6 per cent as the December bullion contract ended the day 50 cents lower to US$742 an ounce. Earlier in the session it had fallen as much as $12.90.
Stocks in Forsys Metals Corp. (TSX: FSY.TO) rose 29 per cent after the company said it has reached a takeover agreement worth nearly $600 million that will put it in the hands of a unit of privately held Africa-based Forrest Group.
Forsys is active in uranium development in Namibia, and the deal is worth $7 per share. Company shares climbed $1.36 to $6.
More Canadians backed out of their mutual fund investments last month than any other time on record, said the Investment Funds Institute of Canada.
In October there were $8.4 billion in net redemptions, and total industry assets ended the month 19.5 per cent below their year-ago level.
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The Toronto stock market ended Monday at its lowest level in three weeks after oil prices tumbled and banking giant Citigroup announced another round of devastating job cuts.
Toronto's S&P/TSX composite index fell 260.51 points to 8,795.45 - its lowest close since Oct. 27.
The TSX Venture Exchange closed down 15.82 to 785.79.
The Canadian dollar was at 81.75 cents US, up 0.15 of a cent.
The TSX financial group led losses down 3.8 per cent. Bank of Montreal (TSX: BMO.TO) fell 3.7 per cent, or $1.55, to $39.90.
The Toronto energy sector was down three per cent after the December crude contract ended the session at a 22-month low on circulating questions about energy demand.
Light sweet crude slid $2.11 to settle at US$55.49 a barrel on the New York Mercantile Exchange.
In downbeat Canadian financial and oilpatch news, the Fort Hills oilsands partners have put off an investment decision on the mine near Fort McMurray, Alta., likely until next year.
The partners - Petro-Canada (TSX: PCA.TO), Teck Cominco Ltd. (TSX: TCK-B.TO) and UTS Energy Corp. (TSX: UTS.TO) - indefinitely shelved a decision on the project's proposed upgrader near Edmonton. Teck Cominco stock was ahead 4.6 per cent, or 29 cents, to $6.64.
Roger Biduk writes:
The gold sector lost 3.6 per cent as the December bullion contract ended the day 50 cents lower to US$742 an ounce. Earlier in the session it had fallen as much as $12.90.
Stocks in Forsys Metals Corp. (TSX: FSY.TO) rose 29 per cent after the company said it has reached a takeover agreement worth nearly $600 million that will put it in the hands of a unit of privately held Africa-based Forrest Group.
Forsys is active in uranium development in Namibia, and the deal is worth $7 per share. Company shares climbed $1.36 to $6.
More Canadians backed out of their mutual fund investments last month than any other time on record, said the Investment Funds Institute of Canada.
In October there were $8.4 billion in net redemptions, and total industry assets ended the month 19.5 per cent below their year-ago level.
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Thursday, November 13, 2008
Roger Biduk - Big Gains in Final Hours on Bay Street
Roger Biduk writes:
North American markets ended Thursday with an enthusiastic surge in the final hours of trading as investors snapped up deals and tested whether the market has priced in its share of bad economic news.
Toronto's S&P/TSX composite index moved up nearly five per cent, or 430.21 points, to 9,352.78, nearly making up for its 500-point loss on Wednesday.
The TSX Venture Exchange slipped 8.91 to 813.59.
The Canadian dollar was at 82.54 cents US, up 1.73 cents. That only partly made up for a 2.77-cent drop on Wednesday.
Statistics Canada said that Canada's trade surplus declined to $4.5 billion in September from $5.6 billion in August, as exports declined and imports rose.
On the TSX, the gold sector led gains, ahead 12.4 per cent, as the December bullion contract closed down $13.30 to US$705 an ounce.
The energy sector increased seven per cent as the price of crude oil for December delivery rose $2.08 to end at $58.24 a barrel.
Harvest Energy Trust (TSX:HTE.UN) got a 15 per cent boost in its units - rising $1.70 to $12.70 - after reporting earnings of $295.8 million from $11.8 million a year ago. The company also said it's delaying a $2 billion expansion of its Newfoundland refinery until credit markets improve.
Loblaw Cos. Ltd. (TSX:L) reported a 32.5 per cent rise in third-quarter net income to $155 million, as sales grew 3.9 per cent. Its shares were up six per cent, or $1.66, to $28.60.
Nortel Networks Corp. (TSX:NT) stocks moved up 30 per cent, or 21 cents, to 30 cents after an RBC Capital markets analyst said bankruptcy "is a distinct possibility down the road," as he released a report that marked down the company's share-price target to zero.
Sino-Forest Corp. (TSX:TRE), one of China's largest lumber suppliers, posted an 18.6 per cent rise in net income to US$75.2 million from US$63.4 million. Shares in the company moved down 14 per cent, or $1.06, to $6.62.
And Lundin Mining Corp. (TSX:LUN) is suspending zinc production at two Portuguese mines, sending its stock up 14 per cent, or 22 cents, to $1.72.
Pan American Silver Corp. (TSX:PAA) shares were up $1.50 to $13.74 after the company said it's cutting 500 jobs, rolling back executive salaries by 10 per cent and reducing exploration and capital spending because of lower silver and zinc prices.
Uranium miner Denison Mines Corp. (TSX:DML) shares were up 25 per cent, or 33 cents, to $1.65, after reporting a small profit in the third quarter of US$332,000 over a net loss of $11.7 million last year.
Internet gambling software provider CryptoLogic Ltd. (TSX:CRY) says it lost US$5.9 million in the July-September period, down from a year-ago profit of $2.4 million. Shares dropped 30 per cent, or $1.74, to $4.
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North American markets ended Thursday with an enthusiastic surge in the final hours of trading as investors snapped up deals and tested whether the market has priced in its share of bad economic news.
Toronto's S&P/TSX composite index moved up nearly five per cent, or 430.21 points, to 9,352.78, nearly making up for its 500-point loss on Wednesday.
The TSX Venture Exchange slipped 8.91 to 813.59.
The Canadian dollar was at 82.54 cents US, up 1.73 cents. That only partly made up for a 2.77-cent drop on Wednesday.
Statistics Canada said that Canada's trade surplus declined to $4.5 billion in September from $5.6 billion in August, as exports declined and imports rose.
On the TSX, the gold sector led gains, ahead 12.4 per cent, as the December bullion contract closed down $13.30 to US$705 an ounce.
The energy sector increased seven per cent as the price of crude oil for December delivery rose $2.08 to end at $58.24 a barrel.
Harvest Energy Trust (TSX:HTE.UN) got a 15 per cent boost in its units - rising $1.70 to $12.70 - after reporting earnings of $295.8 million from $11.8 million a year ago. The company also said it's delaying a $2 billion expansion of its Newfoundland refinery until credit markets improve.
Loblaw Cos. Ltd. (TSX:L) reported a 32.5 per cent rise in third-quarter net income to $155 million, as sales grew 3.9 per cent. Its shares were up six per cent, or $1.66, to $28.60.
Nortel Networks Corp. (TSX:NT) stocks moved up 30 per cent, or 21 cents, to 30 cents after an RBC Capital markets analyst said bankruptcy "is a distinct possibility down the road," as he released a report that marked down the company's share-price target to zero.
Sino-Forest Corp. (TSX:TRE), one of China's largest lumber suppliers, posted an 18.6 per cent rise in net income to US$75.2 million from US$63.4 million. Shares in the company moved down 14 per cent, or $1.06, to $6.62.
And Lundin Mining Corp. (TSX:LUN) is suspending zinc production at two Portuguese mines, sending its stock up 14 per cent, or 22 cents, to $1.72.
Pan American Silver Corp. (TSX:PAA) shares were up $1.50 to $13.74 after the company said it's cutting 500 jobs, rolling back executive salaries by 10 per cent and reducing exploration and capital spending because of lower silver and zinc prices.
Uranium miner Denison Mines Corp. (TSX:DML) shares were up 25 per cent, or 33 cents, to $1.65, after reporting a small profit in the third quarter of US$332,000 over a net loss of $11.7 million last year.
Internet gambling software provider CryptoLogic Ltd. (TSX:CRY) says it lost US$5.9 million in the July-September period, down from a year-ago profit of $2.4 million. Shares dropped 30 per cent, or $1.74, to $4.
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Tuesday, November 11, 2008
No Confidence on Bay Street
Roger Biduk writes:
The hunt for stock market confidence faced new hurdles Tuesday as bad earnings reports and weakening commodity prices left key indexes losing ground.
Toronto's S&P/TSX composite index fell 264.80 points to end the session at 9,424 on overall weakness headed by metals and materials stocks.
The TSX Venture Exchange gained 41.69 points to 872.33.
The TSX diversified metals sector slid 10.6 per cent.
Teck Cominco Ltd. (TSX:TCK.B) was down 20 per cent, losing $2.20 to $8.75. The company issued a statement just minutes before the end of trading to dispel rumours that it's planning to issue more equity - which would be dilutive to current shareholders. Instead, Teck said it's planning asset sales and debt financing to reduce a bridge loan.
Energy stocks declined 4.5 per cent with crude oil closing under US$60 a barrel for the first time in nearly two years.
The crude futures contract briefly touched their lowest level in 21 months - down to $58.32 - but regained some ground to close 4.9 per cent lower, or down $3.08, to US$59.33.
The gold sector fell 3.7 per cent as bullion fell $13.70 to US$732.80 an ounce on the New York Mercantile Exchange. Silver, platinum and copper futures were all at last four per cent lower.
A report from the Bank of Montreal said Canada's resource boom is over and won't return for at least another year, mostly because of the U.S. recession and weakening demand from countries like China.
The Canadian dollar was down 0.30 of a cent at 83.28 cents US, trading on international markets because Canadian banks were closed.
Roger Biduk writes:
In corporate news, Rona Inc. (TSX:RON) reported a 10 per cent decline in summer-quarter profit to $53.4 million as sales at stores open a year or more declined 2.3 per cent. But the quarter was better than expected and Rona stock gained five per cent, climbing 55 cents to $11.70.
High fuel costs and a weaker Canadian dollar dropped Air Canada parent ACE Aviation (TSX:ACE.B) to a $135-million third-quarter loss. ACE shares fell to new lows, down 61 cents or 13.6 per cent to $3.89.
Cameco Corp. (TSX:CCO) said it's looking to cut costs after a 46 per cent slump in adjusted third-quarter profit, and its shares were down $1.14 to $18.60.
Wenzel Downhole Tools Ltd. (TSX:WZL) reported that third-quarter revenue rose to $17.2 million from $11.2 million, and it earned $3.8 million, up from barely break-even a year earlier. Wenzel shares rose 7.6 per cent, or nine cents, to $1.27.
CI Financial Income Fund (TSX:CIX.UN), one of Canada's largest mutual fund companies, says its third-quarter net income fell by 17.8 per cent to $118.1 million. Units of the fund slid 31 cents to $15.45.
In Britain, retail sales fell in October for the first time in 3 1/2 years, while the number of home sales in England and Wales dropped to a record low.
Overseas stock markets were sharply lower. Losses in Asia contrasted with big gains Monday on news of Beijing's four-trillion-yuan (US$586-billion) government spending package.
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The hunt for stock market confidence faced new hurdles Tuesday as bad earnings reports and weakening commodity prices left key indexes losing ground.
Toronto's S&P/TSX composite index fell 264.80 points to end the session at 9,424 on overall weakness headed by metals and materials stocks.
The TSX Venture Exchange gained 41.69 points to 872.33.
The TSX diversified metals sector slid 10.6 per cent.
Teck Cominco Ltd. (TSX:TCK.B) was down 20 per cent, losing $2.20 to $8.75. The company issued a statement just minutes before the end of trading to dispel rumours that it's planning to issue more equity - which would be dilutive to current shareholders. Instead, Teck said it's planning asset sales and debt financing to reduce a bridge loan.
Energy stocks declined 4.5 per cent with crude oil closing under US$60 a barrel for the first time in nearly two years.
The crude futures contract briefly touched their lowest level in 21 months - down to $58.32 - but regained some ground to close 4.9 per cent lower, or down $3.08, to US$59.33.
The gold sector fell 3.7 per cent as bullion fell $13.70 to US$732.80 an ounce on the New York Mercantile Exchange. Silver, platinum and copper futures were all at last four per cent lower.
A report from the Bank of Montreal said Canada's resource boom is over and won't return for at least another year, mostly because of the U.S. recession and weakening demand from countries like China.
The Canadian dollar was down 0.30 of a cent at 83.28 cents US, trading on international markets because Canadian banks were closed.
Roger Biduk writes:
In corporate news, Rona Inc. (TSX:RON) reported a 10 per cent decline in summer-quarter profit to $53.4 million as sales at stores open a year or more declined 2.3 per cent. But the quarter was better than expected and Rona stock gained five per cent, climbing 55 cents to $11.70.
High fuel costs and a weaker Canadian dollar dropped Air Canada parent ACE Aviation (TSX:ACE.B) to a $135-million third-quarter loss. ACE shares fell to new lows, down 61 cents or 13.6 per cent to $3.89.
Cameco Corp. (TSX:CCO) said it's looking to cut costs after a 46 per cent slump in adjusted third-quarter profit, and its shares were down $1.14 to $18.60.
Wenzel Downhole Tools Ltd. (TSX:WZL) reported that third-quarter revenue rose to $17.2 million from $11.2 million, and it earned $3.8 million, up from barely break-even a year earlier. Wenzel shares rose 7.6 per cent, or nine cents, to $1.27.
CI Financial Income Fund (TSX:CIX.UN), one of Canada's largest mutual fund companies, says its third-quarter net income fell by 17.8 per cent to $118.1 million. Units of the fund slid 31 cents to $15.45.
In Britain, retail sales fell in October for the first time in 3 1/2 years, while the number of home sales in England and Wales dropped to a record low.
Overseas stock markets were sharply lower. Losses in Asia contrasted with big gains Monday on news of Beijing's four-trillion-yuan (US$586-billion) government spending package.
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Wednesday, November 5, 2008
Bleeding on Bay Street
Roger Biduk writes:
The stock market optimism that was generated ahead of the U.S. elections was mostly obliterated on North American markets Wednesday, with commodities tumbling as part of a broader decline.
Toronto's S&P/TSX composite index came out the least scathed, losing about half of the gains it took a day earlier. It closed down 229.38 points to 9,887.20.
The TSX Venture Exchange moved down 23.85 points to 951.42.
The TSX base metals sector led declines, down 7.9 per cent, as all major sectors were down.
Gold stocks were down 1.44 per cent overall as the sector endured an up-and-down session where it was at one time the lead gainer, and later the lead loser.
The December bullion contract on the New York Mercantile Exchange closed $14.90 lower to US$742.40 an ounce, after gaining more than five per cent in the last two sessions.
The Canadian dollar closed at 85.62 cents US, down 1.25 cents, even as the greenback weakened.
On the TSX, the energy sector dropped 3.46 per cent as the December crude oil receded $5.23 to US$65.30 on the New York Mercantile Exchange.
In Canadian corporate news, units of The Brick Group Income Fund (TSX:BRK.UN) fell nearly 36 per cent - down $1.79 to $3.25 - after the furniture, appliance and electronics retailer said it will cut distributions in half and reported third quarter net profits dropped to $12.4 million from $17.2 million last year.
Newalta Income Fund (TSX:NAL.UN) announced it will convert from an income trust into a dividend-paying corporation. Newalta is also cutting its growth capital spending next year by about 30 per cent to $75 million, as it presented third-quarter results showing a 19 per cent increase in revenue to $158.6 million and a five per cent rise in net income to $18.7 million. Its units rose two per cent, or 17 cents, to $9.20.
Enbridge Inc. (TSX:ENB) said third-quarter profit increased 90 per cent over a year ago as revenue swelled 66 per cent to $4.37 billion from $2.63 billion. The pipeline operator earned $148.4 million or 41 cents per share in the three months ended Sept. 30, up from $78.1 million a year earlier. Enbridge shares moved down 30 cents to $42.
Pengrowth Energy Trust (TSX:PGF.UN) reported third-quarter earnings of $422.4 million, powered by pretax mark-to-market gains of $476 million on commodity hedging, while oil production declined five per cent. Its units were down 44 cents to $12.87.
Agrium Inc. (TSX:AGU) gained 18 cents to $46.18 after third-quarter earnings of US$367 million, more than seven times the $51 million the farm-inputs company earned in the year-ago period.
Domtar Corp. (TSX:UFS) booked third-quarter net earnings of $43 million, up from of $36 million a year ago, but it offered a glum fourth-quarter outlook and its stock rose 10 cents to $2.80.
Cameco Corp. (TSX:CCO) gained 10 cents to $20.17 after the company disclosed a "modest increase" in water inflow into a development area of its McArthur River uranium mine in northern Saskatchewan. Cameco said the inflow is only 10 per cent of its pumping capacity and is "well managed."
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The stock market optimism that was generated ahead of the U.S. elections was mostly obliterated on North American markets Wednesday, with commodities tumbling as part of a broader decline.
Toronto's S&P/TSX composite index came out the least scathed, losing about half of the gains it took a day earlier. It closed down 229.38 points to 9,887.20.
The TSX Venture Exchange moved down 23.85 points to 951.42.
The TSX base metals sector led declines, down 7.9 per cent, as all major sectors were down.
Gold stocks were down 1.44 per cent overall as the sector endured an up-and-down session where it was at one time the lead gainer, and later the lead loser.
The December bullion contract on the New York Mercantile Exchange closed $14.90 lower to US$742.40 an ounce, after gaining more than five per cent in the last two sessions.
The Canadian dollar closed at 85.62 cents US, down 1.25 cents, even as the greenback weakened.
On the TSX, the energy sector dropped 3.46 per cent as the December crude oil receded $5.23 to US$65.30 on the New York Mercantile Exchange.
In Canadian corporate news, units of The Brick Group Income Fund (TSX:BRK.UN) fell nearly 36 per cent - down $1.79 to $3.25 - after the furniture, appliance and electronics retailer said it will cut distributions in half and reported third quarter net profits dropped to $12.4 million from $17.2 million last year.
Newalta Income Fund (TSX:NAL.UN) announced it will convert from an income trust into a dividend-paying corporation. Newalta is also cutting its growth capital spending next year by about 30 per cent to $75 million, as it presented third-quarter results showing a 19 per cent increase in revenue to $158.6 million and a five per cent rise in net income to $18.7 million. Its units rose two per cent, or 17 cents, to $9.20.
Enbridge Inc. (TSX:ENB) said third-quarter profit increased 90 per cent over a year ago as revenue swelled 66 per cent to $4.37 billion from $2.63 billion. The pipeline operator earned $148.4 million or 41 cents per share in the three months ended Sept. 30, up from $78.1 million a year earlier. Enbridge shares moved down 30 cents to $42.
Pengrowth Energy Trust (TSX:PGF.UN) reported third-quarter earnings of $422.4 million, powered by pretax mark-to-market gains of $476 million on commodity hedging, while oil production declined five per cent. Its units were down 44 cents to $12.87.
Agrium Inc. (TSX:AGU) gained 18 cents to $46.18 after third-quarter earnings of US$367 million, more than seven times the $51 million the farm-inputs company earned in the year-ago period.
Domtar Corp. (TSX:UFS) booked third-quarter net earnings of $43 million, up from of $36 million a year ago, but it offered a glum fourth-quarter outlook and its stock rose 10 cents to $2.80.
Cameco Corp. (TSX:CCO) gained 10 cents to $20.17 after the company disclosed a "modest increase" in water inflow into a development area of its McArthur River uranium mine in northern Saskatchewan. Cameco said the inflow is only 10 per cent of its pumping capacity and is "well managed."
www.rogerbiduk.ca
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Bay Street Rallies
Roger Biduk writes:
North American stock markets surged ahead on Tuesday and closed near their highs of the day as stronger commodities prices and the U.S. election offered up plenty of motivation for investors.
Toronto's S&P/TSX composite index moved ahead four per cent, or 395.32 points, to close at 10,116.58.
The TSX Venture Exchange moved up 39.68 points to 975.27.
Gold stocks led the climb, rising 11.5 per cent, as the December bullion contract gained $30.50 to US$757.30 an ounce on the New York Mercantile Exchange.
The TSX energy sector jumped 5.9 per cent. The light sweet crude contract for December ended the day ahead 10.4 per cent to close at its highest level in two weeks, up $6.62 at $70.53.
The CDN$ continued its revival, gaining 2.19 cents Tuesday. It closed at 86.87 cents US, as the greenback fell against most other major currencies. The loonie had dived to barely 77 cents a week ago but has recovered much of the ground it lost in October.
There was more bad news in the auto sector Tuesday, with Canadian-based global parts maker Magna International Inc. (TSX:MG.A) reporting a third-quarter net loss of US$215 million as sales fell nine per cent from a year earlier. Magna halved its dividend and cut its full-year sales outlook. Its stock lost $1.48 to $39.52.
And German luxury carmaker BMW said its third-quarter earnings dropped 63 per cent to 298 million euros (US$375.5 million) amid "ongoing consumer reticence."
TMX Group Inc. (TSX:X) is cutting 10 per cent of its workforce - 85 people - as the stock exchange operator's integration of the Montreal derivatives market continues. TMX shares gained 80 cents to $29.30.
Enbridge Income Fund (TSX:ENF.UN) said its profit jumped 29 per cent in the third quarter and the company hiked its dividend, which helped send its units up 45 cents to $9.95.
Boralex Power Income Fund (TSX:BPT.UN) says its profit nearly doubled in the third quarter as revenue rose nearly 19 per cent. Units in the Montreal-based electricity producer moved down two cents to $3.66.
Roger Biduk writes:
Talisman Energy Inc. (TSX:TLM) said its third-quarter earnings set a company record, soaring 305 per cent to $1.4 billion. Its shares were up 98 cents to $12.64.
Saputo Inc. (TSX:SAP) has reported summer-quarter earnings of $69 million, up 10 per cent from $62.5 million in the year-ago period, as revenue grew 13 per cent to $1.45 billion largely because of a U.S. acquisition. Shares slid $1 to $24.
Open Text Corp. (TSX:OTC) gained $2.04 to $34.04 after saying it will cut its global workforce by 10 per cent - about 360 jobs - despite nearly doubling its profit in the latest quarter on higher sales.
Catalyst Paper (TSX:CTL) shares rose nearly 23 per cent after the company said cost saving measures helped it trim losses in the third quarter to $10.9 million from $18.6 million a year earlier. Shares were up 8.5 cents to 46 cents.
Magna Entertainment Corp.(TSX: MEC.A) shares jumped more than 10 per cent, up 46 cents to $4.86, causing North America's largest owner and operator of horse racetracks to issue a release saying it isn't aware of any development that would cause the stock's rise.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
North American stock markets surged ahead on Tuesday and closed near their highs of the day as stronger commodities prices and the U.S. election offered up plenty of motivation for investors.
Toronto's S&P/TSX composite index moved ahead four per cent, or 395.32 points, to close at 10,116.58.
The TSX Venture Exchange moved up 39.68 points to 975.27.
Gold stocks led the climb, rising 11.5 per cent, as the December bullion contract gained $30.50 to US$757.30 an ounce on the New York Mercantile Exchange.
The TSX energy sector jumped 5.9 per cent. The light sweet crude contract for December ended the day ahead 10.4 per cent to close at its highest level in two weeks, up $6.62 at $70.53.
The CDN$ continued its revival, gaining 2.19 cents Tuesday. It closed at 86.87 cents US, as the greenback fell against most other major currencies. The loonie had dived to barely 77 cents a week ago but has recovered much of the ground it lost in October.
There was more bad news in the auto sector Tuesday, with Canadian-based global parts maker Magna International Inc. (TSX:MG.A) reporting a third-quarter net loss of US$215 million as sales fell nine per cent from a year earlier. Magna halved its dividend and cut its full-year sales outlook. Its stock lost $1.48 to $39.52.
And German luxury carmaker BMW said its third-quarter earnings dropped 63 per cent to 298 million euros (US$375.5 million) amid "ongoing consumer reticence."
TMX Group Inc. (TSX:X) is cutting 10 per cent of its workforce - 85 people - as the stock exchange operator's integration of the Montreal derivatives market continues. TMX shares gained 80 cents to $29.30.
Enbridge Income Fund (TSX:ENF.UN) said its profit jumped 29 per cent in the third quarter and the company hiked its dividend, which helped send its units up 45 cents to $9.95.
Boralex Power Income Fund (TSX:BPT.UN) says its profit nearly doubled in the third quarter as revenue rose nearly 19 per cent. Units in the Montreal-based electricity producer moved down two cents to $3.66.
Roger Biduk writes:
Talisman Energy Inc. (TSX:TLM) said its third-quarter earnings set a company record, soaring 305 per cent to $1.4 billion. Its shares were up 98 cents to $12.64.
Saputo Inc. (TSX:SAP) has reported summer-quarter earnings of $69 million, up 10 per cent from $62.5 million in the year-ago period, as revenue grew 13 per cent to $1.45 billion largely because of a U.S. acquisition. Shares slid $1 to $24.
Open Text Corp. (TSX:OTC) gained $2.04 to $34.04 after saying it will cut its global workforce by 10 per cent - about 360 jobs - despite nearly doubling its profit in the latest quarter on higher sales.
Catalyst Paper (TSX:CTL) shares rose nearly 23 per cent after the company said cost saving measures helped it trim losses in the third quarter to $10.9 million from $18.6 million a year earlier. Shares were up 8.5 cents to 46 cents.
Magna Entertainment Corp.(TSX: MEC.A) shares jumped more than 10 per cent, up 46 cents to $4.86, causing North America's largest owner and operator of horse racetracks to issue a release saying it isn't aware of any development that would cause the stock's rise.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
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