Roger Biduk writes:
The Toronto stock market managed a slight gain Thursday as financial stocks improved on growing optimism a deal is close on a US$700-billion bailout of the U.S. financial industry and energy stocks benefited from a late-day jump in crude prices.
In Toronto the S&P/TSX composite index came back from a triple-digit slide to close up 33.15 points to 12,546.51, held back by falling gold and base metal stocks.
The TSX Venture Exchange slipped 9.96 points to 1,540.68 while the Canadian dollar was ahead 0.22 cent to 96.68 cents US.
Canada's top central banker waded into the debate Thursday and said the world's economies would be at serious risk without the bailout.
Bank of Canada governor Mark Carney said Thursday that other countries may need to follow the Americans' lead with similar government rescue packages to help out their domestic financial institutions. He also said Canada is in better shape than most to weather the storm, but will not be immune from the aftershocks.
The TSX energy sector was up 1.4 per cent as oil prices switched direction to move higher. The November crude contract on the New York Mercantile Exchange gained $2.29 to US$108.02. Suncor Inc. (TSX:SU) gained $1.30 to $48.83 and EnCana Corp. (TSX:ECA) moved ahead $1.82 to $74.62. Calgary-based Tanganyika Oil Co. (TSX:TYK) has struck a deal to be acquired by Sinopec International Petroleum Exploration and Production Corp. The Chinese oil major is offering $31.50 per share in cash, a total of $2 billion, for Tanganyika, which is active in Syria. Its shares jumped $3.15 or 12 per cent to $29.15.
The financial sector was up one per cent as TD Bank (TSX:TD) gained $1.60 to $64.50 and Scotiabank (TSX:BNS) advanced 57 cents to $49.42.
The TSX gold sector was down 4.3 per cent as the December gold contract in New York faded $13 to US$882. Goldcorp Inc. (TSX:G) declined $2.37 to $35.60 and Barrick Gold Corp. (TSX:ABX) fell $2.25 to $37.70.
Also, market heavyweight Potash Corp. (TSX:POT) gave back $4.66 to $163.33.
Elsewhere on the TSX, CryoCath Technologies Inc. (TSX:CYT) bumped up $4.06 or 91.44 per cent to $8.50 on news that Medtronic Inc. (NYSE:MDT) has agreed to pay $400 million to buy the Montreal developer of heart-surgery equipment.
MacDonald, Dettwiler and Associates Ltd. (TSX:MDA) tumbled $4.43 or 16 per cent to $23 after warning of weaker third-quarter earnings due to the housing and lending woes of the United Kingdom.
On the TSX, declines beat advances 852 to 696 with 215 unchanged as 446.7 million shares traded worth $7.7 billion.
www.rogerbiduk.ca
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Thursday, September 25, 2008
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