Roger Biduk writes:
A selloff in bank and insurance stocks helped push the Toronto stock market down sharply Monday while energy stocks failed to respond to a huge jump in crude prices.
The Toronto market was also buffeted by declines in industrial, tech and telecom stocks.
Toronto's S&P/TSX composite index fell 274.92 points to 12,638.07 keeping most of a 848-point surge on Friday. New York's Dow Jones industrial average lost 372.75 points to 11,015.69 after charging ahead 369 points Friday.
The energy sector lost 1.75 per cent even as the October crude contract on the New York Mercantile Exchange surged $16.37 to US$120.92 a barrel, after going as high as US$130 on its final day of trading. The November crude oil contract was up only $6.62to US$109.37.
The jump in oil came amid a weakening U.S. dollar as investors mulled over the final cost of the plan announced Friday by Treasury Secretary Henry Paulson to buy US$700 billion of toxic mortgage debt.
The TSX Venture Exchange moved up 26.77 points to 1,575.99 and the Canadian dollar was up 1.53 cent at 96.77 cents US as the American dollar moved lower against most major currencies amid worries about the inflationary impact of the financial-sector rescue.
In Toronto, the financial sector fell three per cent after big gains Friday. Royal Bank (TSX:RY) gave back $1.43 to $50 and Scotiabank (TSX:BNS) declined $2.19 to $47.81. Manulife Financial (TSX:MFC) moved down 87 cents to $36 following a report it is set to bid for parts of AIG. Fairfax Financial Holdings Ltd. (TSX:FFH) jumped $25 to $320 after it disclosed Monday that it has US$2.1 billion in realized and unrealized gains on credit default swaps.
The gold sector ran ahead 6.7 per cent as the December bullion contract in New York gained $44.30 to US$909 an ounce. Barrick Gold jumped $3.11 to $39.61 and Goldcorp Inc. (TSX:G) advanced $3.39 to $37.89.
Energy sector losers included Canadian Natural Resources (TSX:CNQ), down $2.84 to US$84.47 while EnCana Corp. (TSX:ECA) gave back $1.55 to $74.20. Tanganyika Oil (TSX:TYK) surged $6.30 or 36 per cent to $23.80 after it said it has entered into talks to sell the company.
Research In Motion Ltd. (TSX:RIM) was a drag on the TSX, losing $8.11 to $101.39.
The telecom sector was also down as Telus Corp. (TSX:T) shed $1.58 to $38.47.
The Toronto income trust sector closed lower, down 1.1 per cent, after the Liberals said they would roll back a looming tax on such trusts introduced by the Tories nearly two years ago.
Elsewhere, Angiotech Pharmaceuticals Inc. (TSX:ANP) shares were down 38 cents or 28per cent to 98 cents after it announced it is moving to cut costs and "further focus its business efforts," while disclosing that a previously announced capital injection of up to $300 million is in doubt.
On the TSX, declines beat advances 879 to 742 with 166 unchanged as 457 million shares traded worth $8.02 billion.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Monday, September 22, 2008
Subscribe to:
Posts (Atom)
