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 $16.5 billion.
Roger's website
Roger's Investment Blog on the U.S. Market
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Tuesday, September 16, 2008
Roger Biduk - TSX Bounces Back From 350 Point Decline
Roger Biduk writes:
The Toronto stock market closed little changed at the end of a volatile session with early steep losses largely erased as gold and technology stocks turned positive.
The S&P/TSX composite index came back from a 351-point deficit to close down just 27.04 points to 12,226.99 with the TSX weighed by a two per cent slide in the financial sector stocks and falling commodity stocks.
Combined with Monday's 516-point slide on declining oil prices and financial sector losses, the TSX is down about 20 per cent from its mid-June high - the common definition of a bear market.
The TSX Venture Exchange surrendered 75.77 points or 4.9 per cent to 1,459.04, while the CDN$ was off 0.14 cent to 93.5 cents US.
The AIG situation helped push the Toronto financial group down two per cent with Canadian insurance giant Manulife down $1 to $36 while Royal Bank (TSX:RY) lost $1.60 to $46.50 and Scotiabank (TSX:BNS) down 77 cents to $45.83.
Oil prices fell $4.56 to US$91.15 a barrel following a slide of more than $5.00 Monday, leaving the Toronto energy sector flat. EnCana Corp. (TSX:ECA) jumped $1.95 to $69.95 but http://finance.yahoo.com/q?s=SU.TO headed 62 cents lower to $45.63.
Investors hoped that gold stocks would be a good bet in volatile times and the gold sector was boosted nearly four per cent even as the December bullion contract on the New York Mercantile Exchange gave back $6.50 to US$780.50 an ounce.
Hopes that the technology sector could lead markets higher took a beating after computer maker Dell warned of "further softening" in global demand. But the TSX information technology sector finished up 1.75 per cent as Research In Motion Ltd. (TSX:RIM) advanced $3.03 to $107.63.
Garda World Security Corp. (TSX:GW) plummeted $4.80 or 54.24 per cent to $4.05 as it disclosed it has renegotiated its loans at higher interest rates and is exploring a sale of its cash logistics business after losing $1.1 million in the second quarter on a 5.5 per cent revenue decline to $301.1 million.
Allen-Vanguard Corp. (TSX:VRS), an Ottawa-based maker of high-tech security equipment, plunged 26.5 cents or 35.3 per cent to 48.5 cents after it failed to attract outside investment and said it may be unable to make a $10-million debt payment due on Sept. 30.
On the TSX, declines overwhelmed advances 1,193 to 423 with 179 unchanged as 596 million shares traded worth $10.7 billion.
Roger Biduk's Website
Roger Biduk's Investment Blog on the U.S. Markets
The Toronto stock market closed little changed at the end of a volatile session with early steep losses largely erased as gold and technology stocks turned positive.
The S&P/TSX composite index came back from a 351-point deficit to close down just 27.04 points to 12,226.99 with the TSX weighed by a two per cent slide in the financial sector stocks and falling commodity stocks.
Combined with Monday's 516-point slide on declining oil prices and financial sector losses, the TSX is down about 20 per cent from its mid-June high - the common definition of a bear market.
The TSX Venture Exchange surrendered 75.77 points or 4.9 per cent to 1,459.04, while the CDN$ was off 0.14 cent to 93.5 cents US.
The AIG situation helped push the Toronto financial group down two per cent with Canadian insurance giant Manulife down $1 to $36 while Royal Bank (TSX:RY) lost $1.60 to $46.50 and Scotiabank (TSX:BNS) down 77 cents to $45.83.
Oil prices fell $4.56 to US$91.15 a barrel following a slide of more than $5.00 Monday, leaving the Toronto energy sector flat. EnCana Corp. (TSX:ECA) jumped $1.95 to $69.95 but http://finance.yahoo.com/q?s=SU.TO headed 62 cents lower to $45.63.
Investors hoped that gold stocks would be a good bet in volatile times and the gold sector was boosted nearly four per cent even as the December bullion contract on the New York Mercantile Exchange gave back $6.50 to US$780.50 an ounce.
Hopes that the technology sector could lead markets higher took a beating after computer maker Dell warned of "further softening" in global demand. But the TSX information technology sector finished up 1.75 per cent as Research In Motion Ltd. (TSX:RIM) advanced $3.03 to $107.63.
Garda World Security Corp. (TSX:GW) plummeted $4.80 or 54.24 per cent to $4.05 as it disclosed it has renegotiated its loans at higher interest rates and is exploring a sale of its cash logistics business after losing $1.1 million in the second quarter on a 5.5 per cent revenue decline to $301.1 million.
Allen-Vanguard Corp. (TSX:VRS), an Ottawa-based maker of high-tech security equipment, plunged 26.5 cents or 35.3 per cent to 48.5 cents after it failed to attract outside investment and said it may be unable to make a $10-million debt payment due on Sept. 30.
On the TSX, declines overwhelmed advances 1,193 to 423 with 179 unchanged as 596 million shares traded worth $10.7 billion.
Roger Biduk's Website
Roger Biduk's Investment Blog on the U.S. Markets
Monday, September 15, 2008
Roger Biduk - Bay Street Lower on Energy & Financials
Roger Biduk writes:
The Toronto stock market plunged more than 500 points Monday, in large part because of tumbling energy stocks as oil prices closed below US$100 dollars US a barrel for the first time in six months.
The market was also hurt by financial stocks after two more big U.S. investment banks were overwhelmed by the collapse of the American housing sector and securities that financed the bubble.
Lehman Brothers (LEH) sought bankruptcy protection while Merrill Lynch agreed to be taken over by Bank of America.
Overall, the S&P/TSX composite index fell 515.55 points or over four per cent to 12,254.03. The market is down 18.7 per cent from its most recent high from June 18.
The Canadian dollar - pressured by sagging prices for oil and other resource exports - eased 0.6 cent to 93.64 cents U.S. even as the U.S. dollar slid against the euro.
The TSX Venture Exchange lost 72.72 points or 4.5 per cent to 1,534.81.
The Toronto energy sector pulled back almost six per cent as the October crude contract on the New York Mercantile Exchange fell $5.47 to US$95.71 a barrel, partly because hurricane Ike largely spared Gulf of Mexico energy infrastructure.
But analysts said investors feared that the upheaval in the financial sector could trigger another round of commodities liquidation - especially with Lehman likely to unwind its holdings. Other investors may also unload commodities, fearing that the deepening economic crisis will further reduce demand for energy and raw materials futures.
EnCana Corp. (TSX:ECA) lost $3.69 or five per cent to $68 and Suncor Energy (TSX:SU) retreated $3.95 or 7.9 per cent to $46.25.
The TSX metals and mining sector retreated by more than seven per cent as analysts said investors feared the upheaval in the financial sector could trigger another round of commodities liquidation - especially with Lehman likely to unwind its holdings.
Other investors may also unload commodities, fearing that the deepening economic crisis will further reduce demand for energy and raw materials futures.
Teck Cominco Ltd. (TSX:TCK.B) down $2.37 or six per cent to $36.64 and Fording Canadian Coal Trust (TSX:FDG.UN) fell $9.27 or 10 per cent to $81.83.
Market heavyweight Potash Corp. (TSX:POT) retreated $8.39 or 4.8 per cent to $163.83.
The gold sector was down 4.8 per cent even as investors bought bullion as a haven. The December gold contract on the Nymex rose US$22.50 to US$787 an ounce and Goldcorp Inc. (TSX:G) faded $2.85 or nine per cent to $28.51.
Anxiety about the financial sector prodded the Toronto financial group down by two per cent. Royal Bank declined $1.10 to $48.10 and CIBC (TSX:CM) lost $3.06 to $61.11, slightly off early low it said it doesn't have "large exposures" to Lehman.
On the TSX, declines beat advances 1,300 to 302 with 153 unchanged as 419 million shares traded worth $7.8 billion.
Roger is a investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Roger's Website
Roger's Investment Blog on the U.S. Markets
The Toronto stock market plunged more than 500 points Monday, in large part because of tumbling energy stocks as oil prices closed below US$100 dollars US a barrel for the first time in six months.
The market was also hurt by financial stocks after two more big U.S. investment banks were overwhelmed by the collapse of the American housing sector and securities that financed the bubble.
Lehman Brothers (LEH) sought bankruptcy protection while Merrill Lynch agreed to be taken over by Bank of America.
Overall, the S&P/TSX composite index fell 515.55 points or over four per cent to 12,254.03. The market is down 18.7 per cent from its most recent high from June 18.
The Canadian dollar - pressured by sagging prices for oil and other resource exports - eased 0.6 cent to 93.64 cents U.S. even as the U.S. dollar slid against the euro.
The TSX Venture Exchange lost 72.72 points or 4.5 per cent to 1,534.81.
The Toronto energy sector pulled back almost six per cent as the October crude contract on the New York Mercantile Exchange fell $5.47 to US$95.71 a barrel, partly because hurricane Ike largely spared Gulf of Mexico energy infrastructure.
But analysts said investors feared that the upheaval in the financial sector could trigger another round of commodities liquidation - especially with Lehman likely to unwind its holdings. Other investors may also unload commodities, fearing that the deepening economic crisis will further reduce demand for energy and raw materials futures.
EnCana Corp. (TSX:ECA) lost $3.69 or five per cent to $68 and Suncor Energy (TSX:SU) retreated $3.95 or 7.9 per cent to $46.25.
The TSX metals and mining sector retreated by more than seven per cent as analysts said investors feared the upheaval in the financial sector could trigger another round of commodities liquidation - especially with Lehman likely to unwind its holdings.
Other investors may also unload commodities, fearing that the deepening economic crisis will further reduce demand for energy and raw materials futures.
Teck Cominco Ltd. (TSX:TCK.B) down $2.37 or six per cent to $36.64 and Fording Canadian Coal Trust (TSX:FDG.UN) fell $9.27 or 10 per cent to $81.83.
Market heavyweight Potash Corp. (TSX:POT) retreated $8.39 or 4.8 per cent to $163.83.
The gold sector was down 4.8 per cent even as investors bought bullion as a haven. The December gold contract on the Nymex rose US$22.50 to US$787 an ounce and Goldcorp Inc. (TSX:G) faded $2.85 or nine per cent to $28.51.
Anxiety about the financial sector prodded the Toronto financial group down by two per cent. Royal Bank declined $1.10 to $48.10 and CIBC (TSX:CM) lost $3.06 to $61.11, slightly off early low it said it doesn't have "large exposures" to Lehman.
On the TSX, declines beat advances 1,300 to 302 with 153 unchanged as 419 million shares traded worth $7.8 billion.
Roger is a investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Roger's Website
Roger's Investment Blog on the U.S. Markets
Roger Biduk - TSX Lower on Financials & Oil.
Roger Biduk writes:
The Toronto Stock Exchange's main index was down almost 300 points Monday afternoon, rattled by the bankruptcy filing of Wall Street's Lehman Brothers Holdings Inc and worries over other big financial institutions.
The financial services sector, which accounts for about a quarter of the index's total weight, was down 1.2 percent - though up from earlier lows - with Canadian Imperial Bank of Commerce down 3.1 percent at C$62.19.
The Bank of Canada said on Monday it will provide liquidity as required to shore up financial markets spooked by the bankruptcy filing of Lehman and the sale of Merrill Lynch.
As well, Canada's banking regulator, the Office of the Superintendent of Financial Institutions, said the country's financial institutions are healthy and it has no plans for special measures to help banks cope with the world financial crisis.
By late Monday morning, the S&P/TSX composite index was down 293.02 points, or 2.288 percent, at 12,476.56, with nine of its 10 main groups lower. Earlier in the session the benchmark index had shed more than 3 percent.
The heavyweight energy sector dropped 3 percent as oil prices fell to around $97 a barrel on worries over lower U.S. demand and signs that Hurricane Ike had spared key U.S. energy infrastructure in the Gulf of Mexico. Canadian Natural Resources fell 4.5 percent to C$79.50.
The materials sector fell 1.3 percent as concerns over the fallout from the U.S. credit crisis overcame a rise in gold prices, which climbed on safe-haven buying.
Consumer staples was the only group in positive territory, managing to eke out a 0.2 percent gain.
Roger's Website
Roger's Investment Blog on the U.S. Markets
Roger services clients in Montreal, West Island, Hudson and the province of Ontario.
The Toronto Stock Exchange's main index was down almost 300 points Monday afternoon, rattled by the bankruptcy filing of Wall Street's Lehman Brothers Holdings Inc and worries over other big financial institutions.
The financial services sector, which accounts for about a quarter of the index's total weight, was down 1.2 percent - though up from earlier lows - with Canadian Imperial Bank of Commerce down 3.1 percent at C$62.19.
The Bank of Canada said on Monday it will provide liquidity as required to shore up financial markets spooked by the bankruptcy filing of Lehman and the sale of Merrill Lynch.
As well, Canada's banking regulator, the Office of the Superintendent of Financial Institutions, said the country's financial institutions are healthy and it has no plans for special measures to help banks cope with the world financial crisis.
By late Monday morning, the S&P/TSX composite index was down 293.02 points, or 2.288 percent, at 12,476.56, with nine of its 10 main groups lower. Earlier in the session the benchmark index had shed more than 3 percent.
The heavyweight energy sector dropped 3 percent as oil prices fell to around $97 a barrel on worries over lower U.S. demand and signs that Hurricane Ike had spared key U.S. energy infrastructure in the Gulf of Mexico. Canadian Natural Resources fell 4.5 percent to C$79.50.
The materials sector fell 1.3 percent as concerns over the fallout from the U.S. credit crisis overcame a rise in gold prices, which climbed on safe-haven buying.
Consumer staples was the only group in positive territory, managing to eke out a 0.2 percent gain.
Roger's Website
Roger's Investment Blog on the U.S. Markets
Roger services clients in Montreal, West Island, Hudson and the province of Ontario.
Sunday, September 14, 2008
Roger Biduk - BAC Buys MER, US$ Drops, Metals Rise
Roger Biduk writes:
One big news story tomorrow will be the purchase of Merrill Lynch (MER) by Bank of America BAC).
You can read more about it here on my U.S. blog.
Another will be the bankruptcy of Lehman Bros. (LEH) if that happens. It hasn't yet as there still might be some kind of last-minute deal before midnight but it doesn't look good.
Currently, gold is up $22.50 or 2.94 and silver is up 4%. That should bode well for the gold stocks I mentioned in last Thursday's blog that were all up huge on Friday.
If Lehman does go under the US$ should drop and there should be a nice rise in gold.
Oil is down 2%, breaking the $100 mark to $99.39.
Roger Biduk's website
Roger Biduk's blog on the U.S. markets
rogerbiduk@rogerbiduk.ca
One big news story tomorrow will be the purchase of Merrill Lynch (MER) by Bank of America BAC).
You can read more about it here on my U.S. blog.
Another will be the bankruptcy of Lehman Bros. (LEH) if that happens. It hasn't yet as there still might be some kind of last-minute deal before midnight but it doesn't look good.
Currently, gold is up $22.50 or 2.94 and silver is up 4%. That should bode well for the gold stocks I mentioned in last Thursday's blog that were all up huge on Friday.
If Lehman does go under the US$ should drop and there should be a nice rise in gold.
Oil is down 2%, breaking the $100 mark to $99.39.
Roger Biduk's website
Roger Biduk's blog on the U.S. markets
rogerbiduk@rogerbiduk.ca
Roger Biduk - Gold Stocks Mentioned in Thursday's Blog Soaring
Roger Biduk writes:
As I wrote in Thursday's blog (see below), gold stocks were due for a rally as the price of gold had a huge drop after nine days in a row of declines.
Well, the gold stocks I mentioned had huge one-day gains on Friday: G +14.49%, YRI + 10.97%, K +10.88%, ABX +9.73%, ELD +6.31%, HBU +6.06% and HMB +3.75.
You'll get this type of action (especially in the commodity markets) after there's been huge losses or gains over a sustained period of time.
The risk reward on the trades above were definitely favorable, even though there are people out there talking about $500 gold coming up.
Only several months ago, I heard $2000 being thrown about....where are these people now?
Roger's Website
Roger's Investing Blog on the American Markets
As I wrote in Thursday's blog (see below), gold stocks were due for a rally as the price of gold had a huge drop after nine days in a row of declines.
Well, the gold stocks I mentioned had huge one-day gains on Friday: G +14.49%, YRI + 10.97%, K +10.88%, ABX +9.73%, ELD +6.31%, HBU +6.06% and HMB +3.75.
You'll get this type of action (especially in the commodity markets) after there's been huge losses or gains over a sustained period of time.
The risk reward on the trades above were definitely favorable, even though there are people out there talking about $500 gold coming up.
Only several months ago, I heard $2000 being thrown about....where are these people now?
Roger's Website
Roger's Investing Blog on the American Markets
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