Roger Biduk writes:
The Toronto stock market closed lower Tuesday as rising energy and gold stocks failed to compensate for a slide in bank stocks a day after one of the worst declines on record.
The S&P/TSX composite index closed down 78.4 points to 8,327.81 - after plunging 9.3 per cent Monday.
The TSX Venture Exchange headed down 8.02 points to 731.1.
The Canadian dollar was off 0.37 cent to 79.84 cents U.S., as the Liberals and NDP say they're ready to govern in a coalition with Bloc Quebecois support and the minority Conservatives look for a way to retain power.
However, analysts note that the political uncertainty is likely not to blame for the weak performance on the TSX.
TSX financials fell four per cent with Bank of Nova Scotia (TSX:BNS) down $2.47 or seven per cent to $32.38 after the bank said its fourth-quarter profits fell 67 per cent to $315 million.
Manulife Financial Corp. (TSX:MFC) also announced it is issuing $2.125 billion in new common shares, and expects to report a $1.5-billion fourth-quarter loss because of annuity provisions. Its shares traded down 57 cents to $19.89
The TSX energy sector, pounded by a 13 per cent slide Monday, was 1.65 per cent higher. The January crude contract moved $2.32 lower to US$46.96, added to a slide of over US$5 Monday after OPEC failed to agree on a production cut last weekend.
EnCana Corp. (TSX:ECA) rose $1.62 to $53.94 while Suncor Energy Corp. (TSX:SU) was down 77 cents to $23.13 on the TSX.
However, Nexen Inc. (TSX:NXY) soared $2.03 or 9.3 per cent to $23.88 after going as high as $29.10 - its biggest one day jump in 21 years - after The Financial Times Alphaville website, citing unnamed sources, said French energy major Total SA is poised to make a bid for the Calgary-based international oil and gas firm. The report, largely paralleling previous speculation, said Total's board is meeting to discuss an offer worth up to $19.7 billion, or $38 per share.
Shares in Opti Canada (TSX:OPC), Nexen's partner in the Long Lake steam-assisted gravity drainage project in the Athabasca oilsands, were up 54 cents or 27 per cent at $2.54.
The gold sector was the biggest percentage advancer, up 7.4 per cent as bullion in New York gained $6.50 to US$788.30 an ounce. Barrick Gold Corp. (TSX:ABX) moved ahead $1.99 to $34.64.
Shares of BlackBerry maker Research In Motion (TSX:RIM) slid below their lowest level in more than a year on Tuesday, down $3.75 to $46.46, going as low as $44.60 - after J.P. Morgan analyst Paul Coster warned that sales of the smartphone with businesses and consumers will be slower due to the economic downturn.
Sierra Wireless Inc. (TSX:SW) is bidding 218 million euros - C$345 million - for Wavecom S.A., a French provider of machine-to-machine wireless technology. Sierra shares fell $2.64 or 27.27 per cent to $7.04.
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Tuesday, December 2, 2008
Roger Biduk - Bay Street flat at Midday
Roger Biduk writes:
The Toronto stock market struggled to find traction a day after one of its worst declines on record.
Toronto's S&P/TSX composite index lost tentative early gains and was down 11 points to 8,395.2 - after plunging 864 points or 9.3 per cent Monday. That was the Toronto market's worst one-day drop since the October 1987 crash, erasing more than half of last week's 14 per cent gain.
The Canadian dollar was ahead 0.04 cent to 80.35 cents US, against a background of political tumult in Ottawa, where the Liberals and NDP say they're ready to govern in a coalition with Bloc Quebecois support, while the minority Conservatives look for a way to retain power.
The TSX Venture Exchange headed up 1.59 points to 740.71.
Canadian investors are marking the passing of Ted Rogers, creator of the country's largest cable-TV and cellphone operator with other interests ranging from Citytv to Maclean's magazine to the Toronto Blue Jays. The founder of Rogers Communications Inc. (TSX: RCI-B.TO) died at home at age 75, leaving open the question of succession, though his family controls the company through multiple-voting shares. Rogers shares were off 31 cents to $34.21.
Investors are looking to Washington where top executives of the Detroit Three automakers are set to submit to Congress their plans for revving the companies up with government money. General Motors, Ford and are hoping for a US$25-billion taxpayer top-up, while they report November sales figures that are expected to be grim.
GM shares rose 33 cents to US$4.92 while Ford added 30 cents to US$2.85.
The TSX energy sector, pounded by a 13 per cent slide Monday as crude oil tumbled US$5.15 a barrel, was up 1.6 per cent Tuesday morning. The January crude contract edged up 30 cents to US$49.58 a barrel after going as low as $47.36 overnight. EnCana Corp. (TSX: ECA.TO) was up $1.76 to C$54.08 on the TSX.
The gold sector was up by more than five per cent as bullion in New York gained $5.06to US$781.86 an ounce. Barrick Gold Corp. (TSX: ABX.TO) moved ahead $1.47 to $34.12.
Financials were down 1.8 per cent as Manulife Financial Corp. (TSX: MFC.TO) announced it is issuing $2.125 billion in new common shares, and expects to report a $1.5-billion fourth-quarter loss because of annuity provisions. The new stock is priced at $19.40 per share, and Manulife traded down $1.05 to $19.41with a 52-week range between $42.14 and $16.28.
Bank of Nova Scotia (TSX: BNS.TO) was down 58 cents to $34.27 ahead of its quarterly earnings report later in the session.
Techs were also a major drag with Research In Motion Ltd. (TSX: RIM.TO) down $4.14 to $46.07.
Sierra Wireless Inc. (TSX: SW.TO) is bidding 218 million euros - C$345 million - for Wavecom S.A., a French provider of machine-to-machine wireless technology. Sierra shares fell 87 cents to $8.81.
Asian markets carried through on Wall Street's slide, with Tokyo's Nikkei index closing down 6.4 per cent and the Hong Kong Hang Seng losing five per cent.
London's FTSE 100 index inched 0.36 per cent lower, while the German DAX is up 0.8 per cent and the French CAC-40 advanced 1.3 per cent.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
The Toronto stock market struggled to find traction a day after one of its worst declines on record.
Toronto's S&P/TSX composite index lost tentative early gains and was down 11 points to 8,395.2 - after plunging 864 points or 9.3 per cent Monday. That was the Toronto market's worst one-day drop since the October 1987 crash, erasing more than half of last week's 14 per cent gain.
The Canadian dollar was ahead 0.04 cent to 80.35 cents US, against a background of political tumult in Ottawa, where the Liberals and NDP say they're ready to govern in a coalition with Bloc Quebecois support, while the minority Conservatives look for a way to retain power.
The TSX Venture Exchange headed up 1.59 points to 740.71.
Canadian investors are marking the passing of Ted Rogers, creator of the country's largest cable-TV and cellphone operator with other interests ranging from Citytv to Maclean's magazine to the Toronto Blue Jays. The founder of Rogers Communications Inc. (TSX: RCI-B.TO) died at home at age 75, leaving open the question of succession, though his family controls the company through multiple-voting shares. Rogers shares were off 31 cents to $34.21.
Investors are looking to Washington where top executives of the Detroit Three automakers are set to submit to Congress their plans for revving the companies up with government money. General Motors, Ford and are hoping for a US$25-billion taxpayer top-up, while they report November sales figures that are expected to be grim.
GM shares rose 33 cents to US$4.92 while Ford added 30 cents to US$2.85.
The TSX energy sector, pounded by a 13 per cent slide Monday as crude oil tumbled US$5.15 a barrel, was up 1.6 per cent Tuesday morning. The January crude contract edged up 30 cents to US$49.58 a barrel after going as low as $47.36 overnight. EnCana Corp. (TSX: ECA.TO) was up $1.76 to C$54.08 on the TSX.
The gold sector was up by more than five per cent as bullion in New York gained $5.06to US$781.86 an ounce. Barrick Gold Corp. (TSX: ABX.TO) moved ahead $1.47 to $34.12.
Financials were down 1.8 per cent as Manulife Financial Corp. (TSX: MFC.TO) announced it is issuing $2.125 billion in new common shares, and expects to report a $1.5-billion fourth-quarter loss because of annuity provisions. The new stock is priced at $19.40 per share, and Manulife traded down $1.05 to $19.41with a 52-week range between $42.14 and $16.28.
Bank of Nova Scotia (TSX: BNS.TO) was down 58 cents to $34.27 ahead of its quarterly earnings report later in the session.
Techs were also a major drag with Research In Motion Ltd. (TSX: RIM.TO) down $4.14 to $46.07.
Sierra Wireless Inc. (TSX: SW.TO) is bidding 218 million euros - C$345 million - for Wavecom S.A., a French provider of machine-to-machine wireless technology. Sierra shares fell 87 cents to $8.81.
Asian markets carried through on Wall Street's slide, with Tokyo's Nikkei index closing down 6.4 per cent and the Hong Kong Hang Seng losing five per cent.
London's FTSE 100 index inched 0.36 per cent lower, while the German DAX is up 0.8 per cent and the French CAC-40 advanced 1.3 per cent.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
Roger Biduk - Energy & Financials Sink Bay Street
Roger Biduk writes:
A broad selloff on the Toronto stock market led by the energy and financial sectors on Monday sent the index to its worst one-day percentage loss since the crash of October 1987.
The S&P/TSX composite index plunged 864.41 points or 9.3 per cent to 8,406.21 after gaining just over 1,100 points last week. The 1987 fall erased 11.3 per cent from the Toronto market.
The TSX Venture Exchange declined 27.23 points to 739.12.
The prospect that the Conservative minority government could be ousted likely had some impact on the selloff.
But analysts noted investors have plenty of other worries, including definitive word the U.S. economy is contracting and a shaky start to the holiday shopping season.
The CDN$ closed down 0.53 cent to 80.31 cents U.S. as oil prices also retreated.
Statistics Canada, meanwhile, said the Canadian economy expanded 0.1 per cent in September, which most economists believe was Canada's last month of growth before what could be a prolonged decline. The third quarter of the year showed 0.3 per cent growth in gross domestic product.
The energy sector was a major TSX loser, down 13 per cent as the January crude oil contract fell $5.15 to US$49.28 a barrel on the New York Mercantile Exchange after OPEC did not cut production at a weekend meeting in Cairo. OPEC meets again Dec. 17.
EnCana Corp. (TSX:ECA) fell $7.68 or 12.8 per cent to $52.32 while Petro-Canada (TSX:PCA) surrendered $5.58 or 16.5 per cent to $28.15.
Financial stocks were down 8.75 per cent ahead of earnings reports from four of the six big banks later this week. Royal Bank fell $3.74 to $39.44 while TD lost $3.75 to $42.25.
The gold index pulled back 13.9 per cent as bullion fell $42.20 to US$776.80 an ounce on the Nymex. Barrick Gold Corp. (TSX:ABX) was down $5.07 to $32.65 while Goldcorp (TSX:G) faded $5.85 to $29.15.
Base metals sagged 12 per cent with Teck Cominco (TSX:TCK.B) off $1.04 to $4.96 while HudBay Minerals (TSX:HBM) declined 51 cents to $3.42.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
A broad selloff on the Toronto stock market led by the energy and financial sectors on Monday sent the index to its worst one-day percentage loss since the crash of October 1987.
The S&P/TSX composite index plunged 864.41 points or 9.3 per cent to 8,406.21 after gaining just over 1,100 points last week. The 1987 fall erased 11.3 per cent from the Toronto market.
The TSX Venture Exchange declined 27.23 points to 739.12.
The prospect that the Conservative minority government could be ousted likely had some impact on the selloff.
But analysts noted investors have plenty of other worries, including definitive word the U.S. economy is contracting and a shaky start to the holiday shopping season.
The CDN$ closed down 0.53 cent to 80.31 cents U.S. as oil prices also retreated.
Statistics Canada, meanwhile, said the Canadian economy expanded 0.1 per cent in September, which most economists believe was Canada's last month of growth before what could be a prolonged decline. The third quarter of the year showed 0.3 per cent growth in gross domestic product.
The energy sector was a major TSX loser, down 13 per cent as the January crude oil contract fell $5.15 to US$49.28 a barrel on the New York Mercantile Exchange after OPEC did not cut production at a weekend meeting in Cairo. OPEC meets again Dec. 17.
EnCana Corp. (TSX:ECA) fell $7.68 or 12.8 per cent to $52.32 while Petro-Canada (TSX:PCA) surrendered $5.58 or 16.5 per cent to $28.15.
Financial stocks were down 8.75 per cent ahead of earnings reports from four of the six big banks later this week. Royal Bank fell $3.74 to $39.44 while TD lost $3.75 to $42.25.
The gold index pulled back 13.9 per cent as bullion fell $42.20 to US$776.80 an ounce on the Nymex. Barrick Gold Corp. (TSX:ABX) was down $5.07 to $32.65 while Goldcorp (TSX:G) faded $5.85 to $29.15.
Base metals sagged 12 per cent with Teck Cominco (TSX:TCK.B) off $1.04 to $4.96 while HudBay Minerals (TSX:HBM) declined 51 cents to $3.42.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
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