Roger Biduk writes:
The Toronto Stock Exchange's main index was up more than 5 percent at midday Friday, as investors cheered a series of moves by central banks and governments to restore confidence in the global financial system.
The big bounce came on news the U.S. government was crafting a sweeping multibillion-dollar plan to rescue the country's battered financial sector and placing a temporary halt on short-selling.
By around noon, the S&P/TSX composite index was up 675.02 points, or 5.5 percent, at 12,739.59, with all of its 10 main groups higher.
The jump at the open - echoing surges on New York and other global markets -- also reflects the "great unwinding" in the United States, said Bill Harris, portfolio manager at Avenue Investment Management.
Prime Minister Stephen Harper said the Canadian government is not considering a bailout plan for the country's banks, which are in good shape despite the financial crisis in the United States.
Nor was there an announcement by Canadian regulators to curb short-selling. The practice of borrowing a stock on a bet that its price will fall, is seen as contributing to sharp declines in equity markets since the credit crunch began in the U.S. mortgage market last year.
The rise on Friday came after a 1.6 percent rally the previous session after the world's top central banks injected billions of dollars into the financial system to ease seized-up money markets.
The heavily weighted financial services sector rose 5.2 percent with Royal Bank of Canada up 4 percent to C$49.90, while Canadian Imperial Bank of Commerce climbed 4.7 percent to C$62.46.
The heavyweight energy sector jumped 5.9 percent as oil rose to around $100 a barrel on expectations the U.S. government rescue plan would help shore up confidence in battered financial markets.
In the oil patch, Canadian Natural Resources soared 8.9 percent to C$84.84.
The materials group added 7.7 percent. Among the gainers in the sector, First Quantum Mineral surged 13.9 percent percent to C$49.87 and Potash Corp of Saskatchewan Inc climbed 11.4 percent to C$186.03.
Roger’s website
Roger’s Investment Blog on the U.S. Market
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Friday, September 19, 2008
Roger Biduk - Bay Street higher on Financials & Metals
Roger Biduk writes:
North American stock markets chalked up solid advances Thursday as investors reacted enthusiastically to moves by regulators in the United States and Britain to shore up the crisis ridden financial system.
Toronto's S&P/TSX composite index closed up 186.88 points to 12,064.57 at the end of a volatile session that saw the key index soar by as much as 503 points.
The move Thursday followed a 349-point tumble on Wednesday that took the main Canadian index to its lowest level in two years.
The TSX Venture Exchange moved 8.29 points higher to 1,477.88 while the Canadian dollar was up 0.62 cent to 94.18 cents US.
On the TSX, the financial sector rose 5.7 per cent and winners included Scotiabank (TSX:BNS), up $3.59 to $47.37, and Royal Bank (TSX:RY), ahead $3.24 to $47.99.
Great-West Lifeco Inc. (TSX:GWO) was up $1.58 to $32.02 after it said it holds C$448 million in investments related to Lehman Brothers and AIG.
The Toronto energy sector gained 1.2 per cent as the October crude contract on the New York Mercantile Exchange added 72 cents to US$97.88 a barrel, after going as high as US$102.24 earlier in the session.
EnCana Corp. (TSX:ECA) advanced $2.82 to $71.72 but Petro-Canada (TSX:PCA) fell $1.21 to $35.78.
The base metals sector advanced 3.6 per cent with Teck Cominco Ltd. (TSX:TCK.B) ahead $1.37 to $35.38.
Cameco Corp. (TSX:CCO) slipped $1.03 to $23.04 after it disclosed that its share of this year's uranium output from the McArthur River mine and Key Lake mill will be about six per cent lower than the previously expected 13.1 million pounds. Next year's production outlook is unchanged.
Gold continued a safe-haven surge which took bullion up by $70 an ounce Wednesday in its biggest-ever one-day gain in dollar terms. The near-month contract was up another $46.50 at US$897 an ounce on the New York Mercantile Exchange.
But the gold sector on the Toronto market lost four per cent. Shares in Goldcorp (TSX:G) fell $2.19 to $30.61.
On the TSX, declines beat advances 829 to 765 with 230 unchanged as 782 million shares traded worth $16.5 billion.
Roger's website
Roger's Investment Blog on the U.S. Market
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
North American stock markets chalked up solid advances Thursday as investors reacted enthusiastically to moves by regulators in the United States and Britain to shore up the crisis ridden financial system.
Toronto's S&P/TSX composite index closed up 186.88 points to 12,064.57 at the end of a volatile session that saw the key index soar by as much as 503 points.
The move Thursday followed a 349-point tumble on Wednesday that took the main Canadian index to its lowest level in two years.
The TSX Venture Exchange moved 8.29 points higher to 1,477.88 while the Canadian dollar was up 0.62 cent to 94.18 cents US.
On the TSX, the financial sector rose 5.7 per cent and winners included Scotiabank (TSX:BNS), up $3.59 to $47.37, and Royal Bank (TSX:RY), ahead $3.24 to $47.99.
Great-West Lifeco Inc. (TSX:GWO) was up $1.58 to $32.02 after it said it holds C$448 million in investments related to Lehman Brothers and AIG.
The Toronto energy sector gained 1.2 per cent as the October crude contract on the New York Mercantile Exchange added 72 cents to US$97.88 a barrel, after going as high as US$102.24 earlier in the session.
EnCana Corp. (TSX:ECA) advanced $2.82 to $71.72 but Petro-Canada (TSX:PCA) fell $1.21 to $35.78.
The base metals sector advanced 3.6 per cent with Teck Cominco Ltd. (TSX:TCK.B) ahead $1.37 to $35.38.
Cameco Corp. (TSX:CCO) slipped $1.03 to $23.04 after it disclosed that its share of this year's uranium output from the McArthur River mine and Key Lake mill will be about six per cent lower than the previously expected 13.1 million pounds. Next year's production outlook is unchanged.
Gold continued a safe-haven surge which took bullion up by $70 an ounce Wednesday in its biggest-ever one-day gain in dollar terms. The near-month contract was up another $46.50 at US$897 an ounce on the New York Mercantile Exchange.
But the gold sector on the Toronto market lost four per cent. Shares in Goldcorp (TSX:G) fell $2.19 to $30.61.
On the TSX, declines beat advances 829 to 765 with 230 unchanged as 782 million shares traded worth $16.5 billion.
Roger's website
Roger's Investment Blog on the U.S. Market
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
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