Roger Biduk writes:
North American markets ended Thursday with an enthusiastic surge in the final hours of trading as investors snapped up deals and tested whether the market has priced in its share of bad economic news.
Toronto's S&P/TSX composite index moved up nearly five per cent, or 430.21 points, to 9,352.78, nearly making up for its 500-point loss on Wednesday.
The TSX Venture Exchange slipped 8.91 to 813.59.
The Canadian dollar was at 82.54 cents US, up 1.73 cents. That only partly made up for a 2.77-cent drop on Wednesday.
Statistics Canada said that Canada's trade surplus declined to $4.5 billion in September from $5.6 billion in August, as exports declined and imports rose.
On the TSX, the gold sector led gains, ahead 12.4 per cent, as the December bullion contract closed down $13.30 to US$705 an ounce.
The energy sector increased seven per cent as the price of crude oil for December delivery rose $2.08 to end at $58.24 a barrel.
Harvest Energy Trust (TSX:HTE.UN) got a 15 per cent boost in its units - rising $1.70 to $12.70 - after reporting earnings of $295.8 million from $11.8 million a year ago. The company also said it's delaying a $2 billion expansion of its Newfoundland refinery until credit markets improve.
Loblaw Cos. Ltd. (TSX:L) reported a 32.5 per cent rise in third-quarter net income to $155 million, as sales grew 3.9 per cent. Its shares were up six per cent, or $1.66, to $28.60.
Nortel Networks Corp. (TSX:NT) stocks moved up 30 per cent, or 21 cents, to 30 cents after an RBC Capital markets analyst said bankruptcy "is a distinct possibility down the road," as he released a report that marked down the company's share-price target to zero.
Sino-Forest Corp. (TSX:TRE), one of China's largest lumber suppliers, posted an 18.6 per cent rise in net income to US$75.2 million from US$63.4 million. Shares in the company moved down 14 per cent, or $1.06, to $6.62.
And Lundin Mining Corp. (TSX:LUN) is suspending zinc production at two Portuguese mines, sending its stock up 14 per cent, or 22 cents, to $1.72.
Pan American Silver Corp. (TSX:PAA) shares were up $1.50 to $13.74 after the company said it's cutting 500 jobs, rolling back executive salaries by 10 per cent and reducing exploration and capital spending because of lower silver and zinc prices.
Uranium miner Denison Mines Corp. (TSX:DML) shares were up 25 per cent, or 33 cents, to $1.65, after reporting a small profit in the third quarter of US$332,000 over a net loss of $11.7 million last year.
Internet gambling software provider CryptoLogic Ltd. (TSX:CRY) says it lost US$5.9 million in the July-September period, down from a year-ago profit of $2.4 million. Shares dropped 30 per cent, or $1.74, to $4.
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Thursday, November 13, 2008
Tuesday, November 11, 2008
No Confidence on Bay Street
Roger Biduk writes:
The hunt for stock market confidence faced new hurdles Tuesday as bad earnings reports and weakening commodity prices left key indexes losing ground.
Toronto's S&P/TSX composite index fell 264.80 points to end the session at 9,424 on overall weakness headed by metals and materials stocks.
The TSX Venture Exchange gained 41.69 points to 872.33.
The TSX diversified metals sector slid 10.6 per cent.
Teck Cominco Ltd. (TSX:TCK.B) was down 20 per cent, losing $2.20 to $8.75. The company issued a statement just minutes before the end of trading to dispel rumours that it's planning to issue more equity - which would be dilutive to current shareholders. Instead, Teck said it's planning asset sales and debt financing to reduce a bridge loan.
Energy stocks declined 4.5 per cent with crude oil closing under US$60 a barrel for the first time in nearly two years.
The crude futures contract briefly touched their lowest level in 21 months - down to $58.32 - but regained some ground to close 4.9 per cent lower, or down $3.08, to US$59.33.
The gold sector fell 3.7 per cent as bullion fell $13.70 to US$732.80 an ounce on the New York Mercantile Exchange. Silver, platinum and copper futures were all at last four per cent lower.
A report from the Bank of Montreal said Canada's resource boom is over and won't return for at least another year, mostly because of the U.S. recession and weakening demand from countries like China.
The Canadian dollar was down 0.30 of a cent at 83.28 cents US, trading on international markets because Canadian banks were closed.
Roger Biduk writes:
In corporate news, Rona Inc. (TSX:RON) reported a 10 per cent decline in summer-quarter profit to $53.4 million as sales at stores open a year or more declined 2.3 per cent. But the quarter was better than expected and Rona stock gained five per cent, climbing 55 cents to $11.70.
High fuel costs and a weaker Canadian dollar dropped Air Canada parent ACE Aviation (TSX:ACE.B) to a $135-million third-quarter loss. ACE shares fell to new lows, down 61 cents or 13.6 per cent to $3.89.
Cameco Corp. (TSX:CCO) said it's looking to cut costs after a 46 per cent slump in adjusted third-quarter profit, and its shares were down $1.14 to $18.60.
Wenzel Downhole Tools Ltd. (TSX:WZL) reported that third-quarter revenue rose to $17.2 million from $11.2 million, and it earned $3.8 million, up from barely break-even a year earlier. Wenzel shares rose 7.6 per cent, or nine cents, to $1.27.
CI Financial Income Fund (TSX:CIX.UN), one of Canada's largest mutual fund companies, says its third-quarter net income fell by 17.8 per cent to $118.1 million. Units of the fund slid 31 cents to $15.45.
In Britain, retail sales fell in October for the first time in 3 1/2 years, while the number of home sales in England and Wales dropped to a record low.
Overseas stock markets were sharply lower. Losses in Asia contrasted with big gains Monday on news of Beijing's four-trillion-yuan (US$586-billion) government spending package.
www.rogerbiduk.ca
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The hunt for stock market confidence faced new hurdles Tuesday as bad earnings reports and weakening commodity prices left key indexes losing ground.
Toronto's S&P/TSX composite index fell 264.80 points to end the session at 9,424 on overall weakness headed by metals and materials stocks.
The TSX Venture Exchange gained 41.69 points to 872.33.
The TSX diversified metals sector slid 10.6 per cent.
Teck Cominco Ltd. (TSX:TCK.B) was down 20 per cent, losing $2.20 to $8.75. The company issued a statement just minutes before the end of trading to dispel rumours that it's planning to issue more equity - which would be dilutive to current shareholders. Instead, Teck said it's planning asset sales and debt financing to reduce a bridge loan.
Energy stocks declined 4.5 per cent with crude oil closing under US$60 a barrel for the first time in nearly two years.
The crude futures contract briefly touched their lowest level in 21 months - down to $58.32 - but regained some ground to close 4.9 per cent lower, or down $3.08, to US$59.33.
The gold sector fell 3.7 per cent as bullion fell $13.70 to US$732.80 an ounce on the New York Mercantile Exchange. Silver, platinum and copper futures were all at last four per cent lower.
A report from the Bank of Montreal said Canada's resource boom is over and won't return for at least another year, mostly because of the U.S. recession and weakening demand from countries like China.
The Canadian dollar was down 0.30 of a cent at 83.28 cents US, trading on international markets because Canadian banks were closed.
Roger Biduk writes:
In corporate news, Rona Inc. (TSX:RON) reported a 10 per cent decline in summer-quarter profit to $53.4 million as sales at stores open a year or more declined 2.3 per cent. But the quarter was better than expected and Rona stock gained five per cent, climbing 55 cents to $11.70.
High fuel costs and a weaker Canadian dollar dropped Air Canada parent ACE Aviation (TSX:ACE.B) to a $135-million third-quarter loss. ACE shares fell to new lows, down 61 cents or 13.6 per cent to $3.89.
Cameco Corp. (TSX:CCO) said it's looking to cut costs after a 46 per cent slump in adjusted third-quarter profit, and its shares were down $1.14 to $18.60.
Wenzel Downhole Tools Ltd. (TSX:WZL) reported that third-quarter revenue rose to $17.2 million from $11.2 million, and it earned $3.8 million, up from barely break-even a year earlier. Wenzel shares rose 7.6 per cent, or nine cents, to $1.27.
CI Financial Income Fund (TSX:CIX.UN), one of Canada's largest mutual fund companies, says its third-quarter net income fell by 17.8 per cent to $118.1 million. Units of the fund slid 31 cents to $15.45.
In Britain, retail sales fell in October for the first time in 3 1/2 years, while the number of home sales in England and Wales dropped to a record low.
Overseas stock markets were sharply lower. Losses in Asia contrasted with big gains Monday on news of Beijing's four-trillion-yuan (US$586-billion) government spending package.
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Wednesday, November 5, 2008
Bleeding on Bay Street
Roger Biduk writes:
The stock market optimism that was generated ahead of the U.S. elections was mostly obliterated on North American markets Wednesday, with commodities tumbling as part of a broader decline.
Toronto's S&P/TSX composite index came out the least scathed, losing about half of the gains it took a day earlier. It closed down 229.38 points to 9,887.20.
The TSX Venture Exchange moved down 23.85 points to 951.42.
The TSX base metals sector led declines, down 7.9 per cent, as all major sectors were down.
Gold stocks were down 1.44 per cent overall as the sector endured an up-and-down session where it was at one time the lead gainer, and later the lead loser.
The December bullion contract on the New York Mercantile Exchange closed $14.90 lower to US$742.40 an ounce, after gaining more than five per cent in the last two sessions.
The Canadian dollar closed at 85.62 cents US, down 1.25 cents, even as the greenback weakened.
On the TSX, the energy sector dropped 3.46 per cent as the December crude oil receded $5.23 to US$65.30 on the New York Mercantile Exchange.
In Canadian corporate news, units of The Brick Group Income Fund (TSX:BRK.UN) fell nearly 36 per cent - down $1.79 to $3.25 - after the furniture, appliance and electronics retailer said it will cut distributions in half and reported third quarter net profits dropped to $12.4 million from $17.2 million last year.
Newalta Income Fund (TSX:NAL.UN) announced it will convert from an income trust into a dividend-paying corporation. Newalta is also cutting its growth capital spending next year by about 30 per cent to $75 million, as it presented third-quarter results showing a 19 per cent increase in revenue to $158.6 million and a five per cent rise in net income to $18.7 million. Its units rose two per cent, or 17 cents, to $9.20.
Enbridge Inc. (TSX:ENB) said third-quarter profit increased 90 per cent over a year ago as revenue swelled 66 per cent to $4.37 billion from $2.63 billion. The pipeline operator earned $148.4 million or 41 cents per share in the three months ended Sept. 30, up from $78.1 million a year earlier. Enbridge shares moved down 30 cents to $42.
Pengrowth Energy Trust (TSX:PGF.UN) reported third-quarter earnings of $422.4 million, powered by pretax mark-to-market gains of $476 million on commodity hedging, while oil production declined five per cent. Its units were down 44 cents to $12.87.
Agrium Inc. (TSX:AGU) gained 18 cents to $46.18 after third-quarter earnings of US$367 million, more than seven times the $51 million the farm-inputs company earned in the year-ago period.
Domtar Corp. (TSX:UFS) booked third-quarter net earnings of $43 million, up from of $36 million a year ago, but it offered a glum fourth-quarter outlook and its stock rose 10 cents to $2.80.
Cameco Corp. (TSX:CCO) gained 10 cents to $20.17 after the company disclosed a "modest increase" in water inflow into a development area of its McArthur River uranium mine in northern Saskatchewan. Cameco said the inflow is only 10 per cent of its pumping capacity and is "well managed."
www.rogerbiduk.ca
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The stock market optimism that was generated ahead of the U.S. elections was mostly obliterated on North American markets Wednesday, with commodities tumbling as part of a broader decline.
Toronto's S&P/TSX composite index came out the least scathed, losing about half of the gains it took a day earlier. It closed down 229.38 points to 9,887.20.
The TSX Venture Exchange moved down 23.85 points to 951.42.
The TSX base metals sector led declines, down 7.9 per cent, as all major sectors were down.
Gold stocks were down 1.44 per cent overall as the sector endured an up-and-down session where it was at one time the lead gainer, and later the lead loser.
The December bullion contract on the New York Mercantile Exchange closed $14.90 lower to US$742.40 an ounce, after gaining more than five per cent in the last two sessions.
The Canadian dollar closed at 85.62 cents US, down 1.25 cents, even as the greenback weakened.
On the TSX, the energy sector dropped 3.46 per cent as the December crude oil receded $5.23 to US$65.30 on the New York Mercantile Exchange.
In Canadian corporate news, units of The Brick Group Income Fund (TSX:BRK.UN) fell nearly 36 per cent - down $1.79 to $3.25 - after the furniture, appliance and electronics retailer said it will cut distributions in half and reported third quarter net profits dropped to $12.4 million from $17.2 million last year.
Newalta Income Fund (TSX:NAL.UN) announced it will convert from an income trust into a dividend-paying corporation. Newalta is also cutting its growth capital spending next year by about 30 per cent to $75 million, as it presented third-quarter results showing a 19 per cent increase in revenue to $158.6 million and a five per cent rise in net income to $18.7 million. Its units rose two per cent, or 17 cents, to $9.20.
Enbridge Inc. (TSX:ENB) said third-quarter profit increased 90 per cent over a year ago as revenue swelled 66 per cent to $4.37 billion from $2.63 billion. The pipeline operator earned $148.4 million or 41 cents per share in the three months ended Sept. 30, up from $78.1 million a year earlier. Enbridge shares moved down 30 cents to $42.
Pengrowth Energy Trust (TSX:PGF.UN) reported third-quarter earnings of $422.4 million, powered by pretax mark-to-market gains of $476 million on commodity hedging, while oil production declined five per cent. Its units were down 44 cents to $12.87.
Agrium Inc. (TSX:AGU) gained 18 cents to $46.18 after third-quarter earnings of US$367 million, more than seven times the $51 million the farm-inputs company earned in the year-ago period.
Domtar Corp. (TSX:UFS) booked third-quarter net earnings of $43 million, up from of $36 million a year ago, but it offered a glum fourth-quarter outlook and its stock rose 10 cents to $2.80.
Cameco Corp. (TSX:CCO) gained 10 cents to $20.17 after the company disclosed a "modest increase" in water inflow into a development area of its McArthur River uranium mine in northern Saskatchewan. Cameco said the inflow is only 10 per cent of its pumping capacity and is "well managed."
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Bay Street Rallies
Roger Biduk writes:
North American stock markets surged ahead on Tuesday and closed near their highs of the day as stronger commodities prices and the U.S. election offered up plenty of motivation for investors.
Toronto's S&P/TSX composite index moved ahead four per cent, or 395.32 points, to close at 10,116.58.
The TSX Venture Exchange moved up 39.68 points to 975.27.
Gold stocks led the climb, rising 11.5 per cent, as the December bullion contract gained $30.50 to US$757.30 an ounce on the New York Mercantile Exchange.
The TSX energy sector jumped 5.9 per cent. The light sweet crude contract for December ended the day ahead 10.4 per cent to close at its highest level in two weeks, up $6.62 at $70.53.
The CDN$ continued its revival, gaining 2.19 cents Tuesday. It closed at 86.87 cents US, as the greenback fell against most other major currencies. The loonie had dived to barely 77 cents a week ago but has recovered much of the ground it lost in October.
There was more bad news in the auto sector Tuesday, with Canadian-based global parts maker Magna International Inc. (TSX:MG.A) reporting a third-quarter net loss of US$215 million as sales fell nine per cent from a year earlier. Magna halved its dividend and cut its full-year sales outlook. Its stock lost $1.48 to $39.52.
And German luxury carmaker BMW said its third-quarter earnings dropped 63 per cent to 298 million euros (US$375.5 million) amid "ongoing consumer reticence."
TMX Group Inc. (TSX:X) is cutting 10 per cent of its workforce - 85 people - as the stock exchange operator's integration of the Montreal derivatives market continues. TMX shares gained 80 cents to $29.30.
Enbridge Income Fund (TSX:ENF.UN) said its profit jumped 29 per cent in the third quarter and the company hiked its dividend, which helped send its units up 45 cents to $9.95.
Boralex Power Income Fund (TSX:BPT.UN) says its profit nearly doubled in the third quarter as revenue rose nearly 19 per cent. Units in the Montreal-based electricity producer moved down two cents to $3.66.
Roger Biduk writes:
Talisman Energy Inc. (TSX:TLM) said its third-quarter earnings set a company record, soaring 305 per cent to $1.4 billion. Its shares were up 98 cents to $12.64.
Saputo Inc. (TSX:SAP) has reported summer-quarter earnings of $69 million, up 10 per cent from $62.5 million in the year-ago period, as revenue grew 13 per cent to $1.45 billion largely because of a U.S. acquisition. Shares slid $1 to $24.
Open Text Corp. (TSX:OTC) gained $2.04 to $34.04 after saying it will cut its global workforce by 10 per cent - about 360 jobs - despite nearly doubling its profit in the latest quarter on higher sales.
Catalyst Paper (TSX:CTL) shares rose nearly 23 per cent after the company said cost saving measures helped it trim losses in the third quarter to $10.9 million from $18.6 million a year earlier. Shares were up 8.5 cents to 46 cents.
Magna Entertainment Corp.(TSX: MEC.A) shares jumped more than 10 per cent, up 46 cents to $4.86, causing North America's largest owner and operator of horse racetracks to issue a release saying it isn't aware of any development that would cause the stock's rise.
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North American stock markets surged ahead on Tuesday and closed near their highs of the day as stronger commodities prices and the U.S. election offered up plenty of motivation for investors.
Toronto's S&P/TSX composite index moved ahead four per cent, or 395.32 points, to close at 10,116.58.
The TSX Venture Exchange moved up 39.68 points to 975.27.
Gold stocks led the climb, rising 11.5 per cent, as the December bullion contract gained $30.50 to US$757.30 an ounce on the New York Mercantile Exchange.
The TSX energy sector jumped 5.9 per cent. The light sweet crude contract for December ended the day ahead 10.4 per cent to close at its highest level in two weeks, up $6.62 at $70.53.
The CDN$ continued its revival, gaining 2.19 cents Tuesday. It closed at 86.87 cents US, as the greenback fell against most other major currencies. The loonie had dived to barely 77 cents a week ago but has recovered much of the ground it lost in October.
There was more bad news in the auto sector Tuesday, with Canadian-based global parts maker Magna International Inc. (TSX:MG.A) reporting a third-quarter net loss of US$215 million as sales fell nine per cent from a year earlier. Magna halved its dividend and cut its full-year sales outlook. Its stock lost $1.48 to $39.52.
And German luxury carmaker BMW said its third-quarter earnings dropped 63 per cent to 298 million euros (US$375.5 million) amid "ongoing consumer reticence."
TMX Group Inc. (TSX:X) is cutting 10 per cent of its workforce - 85 people - as the stock exchange operator's integration of the Montreal derivatives market continues. TMX shares gained 80 cents to $29.30.
Enbridge Income Fund (TSX:ENF.UN) said its profit jumped 29 per cent in the third quarter and the company hiked its dividend, which helped send its units up 45 cents to $9.95.
Boralex Power Income Fund (TSX:BPT.UN) says its profit nearly doubled in the third quarter as revenue rose nearly 19 per cent. Units in the Montreal-based electricity producer moved down two cents to $3.66.
Roger Biduk writes:
Talisman Energy Inc. (TSX:TLM) said its third-quarter earnings set a company record, soaring 305 per cent to $1.4 billion. Its shares were up 98 cents to $12.64.
Saputo Inc. (TSX:SAP) has reported summer-quarter earnings of $69 million, up 10 per cent from $62.5 million in the year-ago period, as revenue grew 13 per cent to $1.45 billion largely because of a U.S. acquisition. Shares slid $1 to $24.
Open Text Corp. (TSX:OTC) gained $2.04 to $34.04 after saying it will cut its global workforce by 10 per cent - about 360 jobs - despite nearly doubling its profit in the latest quarter on higher sales.
Catalyst Paper (TSX:CTL) shares rose nearly 23 per cent after the company said cost saving measures helped it trim losses in the third quarter to $10.9 million from $18.6 million a year earlier. Shares were up 8.5 cents to 46 cents.
Magna Entertainment Corp.(TSX: MEC.A) shares jumped more than 10 per cent, up 46 cents to $4.86, causing North America's largest owner and operator of horse racetracks to issue a release saying it isn't aware of any development that would cause the stock's rise.
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Wednesday, October 29, 2008
Big Rally on Bay Street
Roger Biduk writes:
North American stock markets chalked up huge rallies late in the afternoon Tuesday, resulting in one of the biggest one-day gains ever for the Dow Jones industrial average and a big bounce in Toronto
Toronto's S&P/TSX composite index rose 614.29 points or 7.2 per cent to close at 9,151.63. The TSX Venture Exchange added 7.95 points to 816.94.
That mended a good chunk of the 757-point hole dug in Toronto on Monday, when growing worries about the length and depth of a global recession pushed down Canada's main index by eight per cent.
Tuesday's rallies follow a series of market declines over the past weeks that have shocked even experienced market professionals and lowered Toronto's benchmark index to levels not seen in four years.
The speed and depth of the decline has forced some large-scale investors, such as hedge funds, to sell some of their most desirable holdings to repay borrowed money or meet other obligations.
Investors fled from mutual funds last month, leaving the Canadian industry with net redemptions of almost $4.5 billion - the most of any month on record.
Roger Biduk writes:
The Canadian dollar was up 0.37 cent to 77.96 cents US, still at depths not seen in about four years, because of weak commodity prices, economic uncertainty and a resurgent American currency. The loonie is down about 18 per cent since the start of October.
Among the bad news on the jobs front Tuesday, appliance giant Whirlpool Corp. said it will cut about 5,000 jobs by the end of 2009 while Toronto-based mining company Breakwater Resources Ltd.(TSX:BWR) announced plans to suspend operations at two Canadian mines, resulting in an undetermined number of layoffs.
The TSX energy sector rose 7.8 per cent as the December crude contract reversed direction to move down 49 cents at US$62.73 a barrel on the New York Mercantile Exchange. EnCana Corp. (TSX:ECA) advanced $4.46 to $55.50 and Suncor Energy Inc. (TSX:SU) moved ahead $2.22 to $25.40.
The financial sector was up 6.55 per cent. Royal Bank rose $2.50 to $45 while A advanced $2.36 to $38.68 despite a downgrade to "sell" by an analyst at Dundee Securities.
The gold sector ran up 15 per cent although bullion slipped $2.40 to US$740.50 an ounce. Goldcorp Inc. (TSX:G) climbed $1.90 to $20.65 while Barrick Gold Corp. (TSX:ABX) ran ahead $2.81 or 12.5 per cent to $25.32.
The base metals sector moved ahead 8.6 per cent as copper turned up 5.35 cents to US$1.8585 a pound. Teck Cominco Ltd. (TSX:TCK.B) rose 73 cents to $11.49 while Sherritt International (TSX:S) rose 87 cents to $4.070.
Roger Biduk writes:
In third-quarter earnings reports, Rogers Communications Inc. (TSX:RCI.B) booked an 84 per cent increase in third-quarter net income to $495 million as operating revenue grew 14 per cent from a year ago to $2.98 billion. Rogers shares advanced $2.93 or 10 per cent to $32.
Canadian Pacific Railway Ltd. (TSX:CP) shares were up $6.85 or 15.75 per cent to $50.35 after third-quarter net income dropped 21 per cent to $172.7 million on accounting items but management reported steady operating results and maintained its full-year profit forecast.
Pipeline and power utility operator TransCanada Corp. (TSX:TRP) said its third-quarter earnings bulked up 20 per cent to $390 million. Its shares rose $1.81 to $34.44.
Canadian Tire (TSX:CTC.A) shares rose $1.50 to $43.50 after it said it is planning to open two experimental stores in Ontario that will offer an expanded variety of food and other consumable items as part of a new product assortment.
The positive showing on North American stock exchanges came alongside similar strong advances in Asia following steep losses.
Japan's Nikkei stock average jumped 6.4 per cent and Hong Kong's Hang Seng index surged 14.4 per cent - its biggest gain in 11 years - a day after plunging more than 12 per cent.
On the TSX, advances beat declines 862 to 725 with 215 unchanged as 600 million shares traded worth $6.7 billion.
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www.rogerbiduk.ca
North American stock markets chalked up huge rallies late in the afternoon Tuesday, resulting in one of the biggest one-day gains ever for the Dow Jones industrial average and a big bounce in Toronto
Toronto's S&P/TSX composite index rose 614.29 points or 7.2 per cent to close at 9,151.63. The TSX Venture Exchange added 7.95 points to 816.94.
That mended a good chunk of the 757-point hole dug in Toronto on Monday, when growing worries about the length and depth of a global recession pushed down Canada's main index by eight per cent.
Tuesday's rallies follow a series of market declines over the past weeks that have shocked even experienced market professionals and lowered Toronto's benchmark index to levels not seen in four years.
The speed and depth of the decline has forced some large-scale investors, such as hedge funds, to sell some of their most desirable holdings to repay borrowed money or meet other obligations.
Investors fled from mutual funds last month, leaving the Canadian industry with net redemptions of almost $4.5 billion - the most of any month on record.
Roger Biduk writes:
The Canadian dollar was up 0.37 cent to 77.96 cents US, still at depths not seen in about four years, because of weak commodity prices, economic uncertainty and a resurgent American currency. The loonie is down about 18 per cent since the start of October.
Among the bad news on the jobs front Tuesday, appliance giant Whirlpool Corp. said it will cut about 5,000 jobs by the end of 2009 while Toronto-based mining company Breakwater Resources Ltd.(TSX:BWR) announced plans to suspend operations at two Canadian mines, resulting in an undetermined number of layoffs.
The TSX energy sector rose 7.8 per cent as the December crude contract reversed direction to move down 49 cents at US$62.73 a barrel on the New York Mercantile Exchange. EnCana Corp. (TSX:ECA) advanced $4.46 to $55.50 and Suncor Energy Inc. (TSX:SU) moved ahead $2.22 to $25.40.
The financial sector was up 6.55 per cent. Royal Bank rose $2.50 to $45 while A advanced $2.36 to $38.68 despite a downgrade to "sell" by an analyst at Dundee Securities.
The gold sector ran up 15 per cent although bullion slipped $2.40 to US$740.50 an ounce. Goldcorp Inc. (TSX:G) climbed $1.90 to $20.65 while Barrick Gold Corp. (TSX:ABX) ran ahead $2.81 or 12.5 per cent to $25.32.
The base metals sector moved ahead 8.6 per cent as copper turned up 5.35 cents to US$1.8585 a pound. Teck Cominco Ltd. (TSX:TCK.B) rose 73 cents to $11.49 while Sherritt International (TSX:S) rose 87 cents to $4.070.
Roger Biduk writes:
In third-quarter earnings reports, Rogers Communications Inc. (TSX:RCI.B) booked an 84 per cent increase in third-quarter net income to $495 million as operating revenue grew 14 per cent from a year ago to $2.98 billion. Rogers shares advanced $2.93 or 10 per cent to $32.
Canadian Pacific Railway Ltd. (TSX:CP) shares were up $6.85 or 15.75 per cent to $50.35 after third-quarter net income dropped 21 per cent to $172.7 million on accounting items but management reported steady operating results and maintained its full-year profit forecast.
Pipeline and power utility operator TransCanada Corp. (TSX:TRP) said its third-quarter earnings bulked up 20 per cent to $390 million. Its shares rose $1.81 to $34.44.
Canadian Tire (TSX:CTC.A) shares rose $1.50 to $43.50 after it said it is planning to open two experimental stores in Ontario that will offer an expanded variety of food and other consumable items as part of a new product assortment.
The positive showing on North American stock exchanges came alongside similar strong advances in Asia following steep losses.
Japan's Nikkei stock average jumped 6.4 per cent and Hong Kong's Hang Seng index surged 14.4 per cent - its biggest gain in 11 years - a day after plunging more than 12 per cent.
On the TSX, advances beat declines 862 to 725 with 215 unchanged as 600 million shares traded worth $6.7 billion.
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www.rogerbiduk.ca
Tuesday, October 21, 2008
Bay Street Soars on Energy
Roger Biduk writes:
The Toronto stock market soared almost 700 points, led by a big runup in energy stocks as oil prices moved higher and investors grew confident that massive injections of government cash into the financial system was starting to thaw the credit markets.
Toronto's S&P/TSX composite index jumped 688.91 points or 7.2 per cent to 10,251.4 on top of last week's 500-point gain.
The TSX was lifted by energy stocks as oil prices moved higher ahead of a meeting of the Organization of Petroleum Exporting Countries at the end of the week. OPEC is widely expected to cut production significantly in an attempt to support oil prices that are half of their July peak of US$147 a barrel.
The TSX energy sector rose more than 14 per cent as the November crude contract on the New York Mercantile Exchange rose $2.40 to US$74.25 a barrel. EnCana Corp. (TSX:ECA) advanced $7.19 to $57.07.
The financial sector was ahead five per cent as Royal Bank (TSX:RY) improved $3.58 to $49.83 while CIBC (TSX:CM) was ahead $2.99 to $60.99. Financial stocks were boosted by hopes that Ottawa is set to guarantee loans that Canada's banks extend to other financial institutions.
Roger Biduk writes:
The TSX Venture Exchange was ahead 38.82 points to 984.94, while the Canadian dollar shed 0.48 cent to at 83.77 cents U.S. ahead of the Bank of Canada's announcement on interest rates Tuesday. Economists expect the central bank to cut its key interest rates by at least a quarter-point to deal with worsening economic conditions.
Gold was up $2.30 to US$790 an ounce on the Nymex, taking the TSX gold sector ahead more than 11 per cent with Goldcorp Inc. (TSX:G) ahead 13.8% to $26.75 and Barrick Gold (TSX:ABX) advanced 15.4% to $32.33.
Base metals were also stronger as Teck Cominco Ltd. (TSX:TCK.B) added $3.24 to $26.75 and FNX Mining (TSX:FNX) jumped $1 or 17.25 per cent to $6.80.
First Nickel Inc. (TSX:FNI) fell one cent or 18 per cent to 4.5 cents after suspending production at its Lockerby mine near Sudbury due to low metal prices and the "challenging financial environment."
On the TSX, advances beat declines 1,174 to 374 with 195 unchanged as 473 million shares traded worth $6.8 billion.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
The Toronto stock market soared almost 700 points, led by a big runup in energy stocks as oil prices moved higher and investors grew confident that massive injections of government cash into the financial system was starting to thaw the credit markets.
Toronto's S&P/TSX composite index jumped 688.91 points or 7.2 per cent to 10,251.4 on top of last week's 500-point gain.
The TSX was lifted by energy stocks as oil prices moved higher ahead of a meeting of the Organization of Petroleum Exporting Countries at the end of the week. OPEC is widely expected to cut production significantly in an attempt to support oil prices that are half of their July peak of US$147 a barrel.
The TSX energy sector rose more than 14 per cent as the November crude contract on the New York Mercantile Exchange rose $2.40 to US$74.25 a barrel. EnCana Corp. (TSX:ECA) advanced $7.19 to $57.07.
The financial sector was ahead five per cent as Royal Bank (TSX:RY) improved $3.58 to $49.83 while CIBC (TSX:CM) was ahead $2.99 to $60.99. Financial stocks were boosted by hopes that Ottawa is set to guarantee loans that Canada's banks extend to other financial institutions.
Roger Biduk writes:
The TSX Venture Exchange was ahead 38.82 points to 984.94, while the Canadian dollar shed 0.48 cent to at 83.77 cents U.S. ahead of the Bank of Canada's announcement on interest rates Tuesday. Economists expect the central bank to cut its key interest rates by at least a quarter-point to deal with worsening economic conditions.
Gold was up $2.30 to US$790 an ounce on the Nymex, taking the TSX gold sector ahead more than 11 per cent with Goldcorp Inc. (TSX:G) ahead 13.8% to $26.75 and Barrick Gold (TSX:ABX) advanced 15.4% to $32.33.
Base metals were also stronger as Teck Cominco Ltd. (TSX:TCK.B) added $3.24 to $26.75 and FNX Mining (TSX:FNX) jumped $1 or 17.25 per cent to $6.80.
First Nickel Inc. (TSX:FNI) fell one cent or 18 per cent to 4.5 cents after suspending production at its Lockerby mine near Sudbury due to low metal prices and the "challenging financial environment."
On the TSX, advances beat declines 1,174 to 374 with 195 unchanged as 473 million shares traded worth $6.8 billion.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
Sunday, October 19, 2008
ENERGY & FINANCIALS LEAD BAY STREET HIGHER
Roger Biduk writes
The Toronto stock market surged almost 300 points Friday, led by big gains in energy stocks after oil prices turned around following steep losses in the past three sessions.
Banks and insurance companies were also a big reason that Toronto's S&P/TSX composite index came back from a morning deficit of about 200 points to close up 292.52 points at 9,562.49.
The Toronto market ended the week up a healthy 497.33 points or 5.5 per cent, with financials up 10 per cent in the wake of an announcement that Ottawa will buy up to $25 billion in mortgages from the banks and shift them to Canada Mortgage and Housing Corp.
But the main TSX index is down about 19 per cent since the first of the month.
The TSX Venture Exchange gained 8.33 points to 946.12, while the Canadian dollar edged 0.38 cent lower to 84.25 cents U.S.
On the TSX, the energy sector was up 6.9 cent after three days of oil-price declines that took crude below US$70 a barrel for the first time since August 2007.
The November crude contract on the New York Mercantile Exchange gained $2 to US$71.85 a barrel ahead of OPEC's special meeting on prices next week.
EnCana Corp. (TSX:ECA) advanced $3.38 to $49.88 and Suncor Inc. (TSX:SU) gained $2.02 to $26.22.
The TSX base metals sector moved ahead five per cent as Teck Cominco Ltd. (TCK.B) jumped $1.29 to $16.39.
Bullion was down $16.80 at US$787.70 an ounce,sending the TSX gold sector down 2.65 per cent. Barrick Gold Corp. (TSX:ABX) declined $1.03 to $28.01.
Roger Biduk writes:
The financial sector 1.8 rose per cent as National Bank (TSX:NA) added $2.45 to $46.39 and Royal Bank (TSX:RY) improved 59 cents to $46.25.
In Canadian corporate news, the Priszm Income Fund (TSX:QSR.UN) suffered a 24 per cent shrinkage in summer-quarter net profit to $3.5 million as sales at its KFC, Taco Bell and Pizza Hut restaurants declined 1.9 per cent to $95.9 million. Priszm units ran ahead 59 cents or 40 per cent to $2.06.
Allen-Vanguard Corp. (TSX:VRS) shares were up six cents or 26 per cent to 29 cents after the maker of high-hazard protective equipment announced a contract to provide specialized training to the U.S. Department of Defence valued at $100 million over five years.
On the TSX, advances beat declines 1,056 to 504 with 210 unchanged as 488.9 million shares traded worth $7 billion.
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
The Toronto stock market surged almost 300 points Friday, led by big gains in energy stocks after oil prices turned around following steep losses in the past three sessions.
Banks and insurance companies were also a big reason that Toronto's S&P/TSX composite index came back from a morning deficit of about 200 points to close up 292.52 points at 9,562.49.
The Toronto market ended the week up a healthy 497.33 points or 5.5 per cent, with financials up 10 per cent in the wake of an announcement that Ottawa will buy up to $25 billion in mortgages from the banks and shift them to Canada Mortgage and Housing Corp.
But the main TSX index is down about 19 per cent since the first of the month.
The TSX Venture Exchange gained 8.33 points to 946.12, while the Canadian dollar edged 0.38 cent lower to 84.25 cents U.S.
On the TSX, the energy sector was up 6.9 cent after three days of oil-price declines that took crude below US$70 a barrel for the first time since August 2007.
The November crude contract on the New York Mercantile Exchange gained $2 to US$71.85 a barrel ahead of OPEC's special meeting on prices next week.
EnCana Corp. (TSX:ECA) advanced $3.38 to $49.88 and Suncor Inc. (TSX:SU) gained $2.02 to $26.22.
The TSX base metals sector moved ahead five per cent as Teck Cominco Ltd. (TCK.B) jumped $1.29 to $16.39.
Bullion was down $16.80 at US$787.70 an ounce,sending the TSX gold sector down 2.65 per cent. Barrick Gold Corp. (TSX:ABX) declined $1.03 to $28.01.
Roger Biduk writes:
The financial sector 1.8 rose per cent as National Bank (TSX:NA) added $2.45 to $46.39 and Royal Bank (TSX:RY) improved 59 cents to $46.25.
In Canadian corporate news, the Priszm Income Fund (TSX:QSR.UN) suffered a 24 per cent shrinkage in summer-quarter net profit to $3.5 million as sales at its KFC, Taco Bell and Pizza Hut restaurants declined 1.9 per cent to $95.9 million. Priszm units ran ahead 59 cents or 40 per cent to $2.06.
Allen-Vanguard Corp. (TSX:VRS) shares were up six cents or 26 per cent to 29 cents after the maker of high-hazard protective equipment announced a contract to provide specialized training to the U.S. Department of Defence valued at $100 million over five years.
On the TSX, advances beat declines 1,056 to 504 with 210 unchanged as 488.9 million shares traded worth $7 billion.
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
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