Roger Biduk writes:
The Toronto stock market closed sharply lower as early gains in energy and mining stocks disappeared, losses in financials picked up amid a new wrinkle in the restructuring of commercial paper while telecom stocks fell with death of the BCE takeover attempt.
Toronto's S&P/TSX composite index tumbled 242.1 points to 8,391.9.
The Canadian dollar gained 1.67 cents to 81.06 cents US as the U.S. currency weakened.
The TSX Venture Exchange moved up 7.9 points to 713.44.
The TSX financial sector slipped 3.75 per cent with National Bank (TSX:NA) the biggest loser, down $3.10 or 9.4 per cent to $29.81 and Manulife Financial gave back 97 cents to $18.98.
The slide followed a report that Ottawa could be asked to provide between $5 billion and $10 billion to salvage the restructuring of the seized-up market for Canadian asset-backed commercial paper, or ABCP. The plan has been stalled for months by market upheaval.
The energy sector in Toronto gave up early strong gains even as the price of crude in New York ran ahead $4.46 to US$47.98 a barrel, falling two per cent as both Petro-Canada (TSX:PCA) and EnCana Corp. (TSX:ECA) said they are reducing 2009 capital spending - Petro-Canada by about one-third to $4 billion.
EnCana slashed its cash-flow outlook and reduced its capital budget to US$6.1 billion, from $7 billion this year.
PetroCan shares slipped two cents to $28.98, EnCana gave back $4.42 to $55.22 and Canadian Natural Resources (TSX:CNQ) gained $2.10 to $44.75.
Precision Drilling Trust (TSX:PD.UN) surrendered 90 cents to $7.65 after warning it may cut its distributions as financing costs swell for its proposed takeover of Grey Wolf Inc.
The energy sector announcements came as oil prices rose above US$45 a barrel with traders expecting a significant OPEC production cut next week to boost the market. Light sweet crude traded later up $4.46 at US$47.98 a barrel on the New York Mercantile Exchange.
The TSX gold sector gave back 3.25 per cent even as bullion advanced $17.80 to US$826.60 an ounce. Iamgold Corp. (TSX:IMG) was down 22 cents to $5.88 after a friendly deal to acquire Orezone Resources Inc. (TSX:OZN) in an all-stock transaction valued at US$139 million. Orezone shares jumped 34.5 cents or 197 per cent to 52 cents.
Lululemon Athletica Inc. (TSX:LLL) stock fell $4.35 or 33 per cent to $8.80 after reducing its expectations for the holiday quarter and next year - including a drop in same-store sales - "based on the trends in the macro environment and the weaker Canadian dollar."
T-shirt and sportswear manufacturer Gildan Activewear Inc. (TSX:GIL) reported its earnings shrank by almost half in its latest quarter to US$21.4 million, pulled down by a US$26.9-million settlement of a long-running tax dispute. Its stock fell 35 per cent, losing $6.15 to $11.60.
Research In Motion Ltd. (TSX:RIM) has lined up an agreement to acquire Chalk Media Corp. (TSXV:CKM) - which creates and deploys media-rich content delivery to RIM's BlackBerry smartphones - for $23.1 million in cash. Chalk shares soared 8.5 cents or 189 per cent to 13 cents while RIM shares were off $1.99 to $46.59.
After markets closed, Canadian data encryption specialist Certicom Corp. (TSX:CIC.TO) called a takeover offer by RIM "highly opportunistic" and said it "undervalues" Certicom
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Thursday, December 11, 2008
Wednesday, December 10, 2008
Roger Biduk - Commodities Bolster Bay Street
Roger Biduk writes:
Energy and mining stocks led the way to a solid triple-digit rise on the Toronto stock market on Wednesday as financial stocks lost ground for a second day.
Toronto's S&P/TSX composite index closed up 236.44 points at 8,634.
The TSX Venture Exchange was up 19.52 points to 705.54 while the Canadian dollar moved ahead 0.31 of a cent to 79.39 cents US as commodity prices ticked higher.
Prime Minister Stephen Harper says there will be no blank cheque for automakers and he wants to see the U.S. aid package before deciding on the Detroit Three's plea for billions of dollars in help from Ottawa.
The TSX base metals sector ran ahead 8.25 per cent amid news from global miner Rio Tinto that it is cutting 14,000 jobs worldwide and reducing capital spending.
The news was enthusiastically received by investors who sent Rio Tinto's shares up $4.05 or 12. per cent to US$37.40. It's not yet known how Rio Tinto's cutback will affect Canadian operations. The London-based global miner is afflicted by weak metal prices and weighed down by debt from last year's US$38-billion acquisition of Montreal-based Alcan.
Teck Cominco Ltd. (TSX:TCK.B) advanced 56 cents to $4.83 as copper rose 5.2 cents to US$1.4955 pound while Equinox Minerals (TSX:EQN) charged ahead 20 cents to $1.28.
The TSX energy sector moved up 5.45 per cent amid rising oil prices. The January crude contract in New York gained $1.45 to US$43.52 a barrel ahead of an expected production-quota cut next week by the Organization of Petroleum Exporting Countries.
EnCana Corp. (TSX:ECA) advanced $3.61 to $59.64 while Suncor Energy (TSX:SU) improved $2.73 to $26.70.
Nexen Inc. (TSX:NXY) shares advanced 85 cents to $21.73 as it announced plans to spend 15 per cent less in 2009 than it did this year as it ramps down investment in the Long Lake oilsands venture and some conventional oil properties.
The gold sector rose 10 per cent as bullion gained $34.60 to US$808.80 an ounce. Goldcorp Inc. (TSX:G) added $3.56 to $34.50 while Barrick Gold Corp. (TSX:ABX) headed $3.40 higher to $38.50.
Bank stocks continued to be a drag with the sector down almost two per cent a day after the Bank of Canada slashed its main interest rate by 75 basis points. Scotiabank (TSX:BNS) declined $1.10 to $31.24 while National Bank (TSX:NA) gave back $1.96 to $32.91.
Investors were also braced for more moves by the banks to raise money to bolster their capital requirements and protect dividend payments.
Teck stocks were under pressure with Nortel Networks shares (TSX:NT) falling 15 cents or 23.45 per cent to 49 cents, after hitting a new 52-week low of 46 cents.
The Wall Street Journal reported the telecom equipment company hired legal counsel to explore bankruptcy court protection from creditors. Nortel responded that it is "a viable partner for the long term" and noted it has no debt maturity until 2011.
George Weston Ltd. (TSX:WN) shares climbed $1.48 to $62.40 after it announced the sale of its fresh baked-goods business in the United States to Grupo Bimbo of Mexico for US$2.5 billion.
MDS said its revenue and operating profit are below previous guidance, and it is taking a US$260-million writeoff of the MAPLE medical-isotope reactor, along with a goodwill writedown of as much as $370 million at its MDS Pharma Services division. Its shares closed up three cents at $8 after hitting a new 52-week low of $6.82.
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Energy and mining stocks led the way to a solid triple-digit rise on the Toronto stock market on Wednesday as financial stocks lost ground for a second day.
Toronto's S&P/TSX composite index closed up 236.44 points at 8,634.
The TSX Venture Exchange was up 19.52 points to 705.54 while the Canadian dollar moved ahead 0.31 of a cent to 79.39 cents US as commodity prices ticked higher.
Prime Minister Stephen Harper says there will be no blank cheque for automakers and he wants to see the U.S. aid package before deciding on the Detroit Three's plea for billions of dollars in help from Ottawa.
The TSX base metals sector ran ahead 8.25 per cent amid news from global miner Rio Tinto that it is cutting 14,000 jobs worldwide and reducing capital spending.
The news was enthusiastically received by investors who sent Rio Tinto's shares up $4.05 or 12. per cent to US$37.40. It's not yet known how Rio Tinto's cutback will affect Canadian operations. The London-based global miner is afflicted by weak metal prices and weighed down by debt from last year's US$38-billion acquisition of Montreal-based Alcan.
Teck Cominco Ltd. (TSX:TCK.B) advanced 56 cents to $4.83 as copper rose 5.2 cents to US$1.4955 pound while Equinox Minerals (TSX:EQN) charged ahead 20 cents to $1.28.
The TSX energy sector moved up 5.45 per cent amid rising oil prices. The January crude contract in New York gained $1.45 to US$43.52 a barrel ahead of an expected production-quota cut next week by the Organization of Petroleum Exporting Countries.
EnCana Corp. (TSX:ECA) advanced $3.61 to $59.64 while Suncor Energy (TSX:SU) improved $2.73 to $26.70.
Nexen Inc. (TSX:NXY) shares advanced 85 cents to $21.73 as it announced plans to spend 15 per cent less in 2009 than it did this year as it ramps down investment in the Long Lake oilsands venture and some conventional oil properties.
The gold sector rose 10 per cent as bullion gained $34.60 to US$808.80 an ounce. Goldcorp Inc. (TSX:G) added $3.56 to $34.50 while Barrick Gold Corp. (TSX:ABX) headed $3.40 higher to $38.50.
Bank stocks continued to be a drag with the sector down almost two per cent a day after the Bank of Canada slashed its main interest rate by 75 basis points. Scotiabank (TSX:BNS) declined $1.10 to $31.24 while National Bank (TSX:NA) gave back $1.96 to $32.91.
Investors were also braced for more moves by the banks to raise money to bolster their capital requirements and protect dividend payments.
Teck stocks were under pressure with Nortel Networks shares (TSX:NT) falling 15 cents or 23.45 per cent to 49 cents, after hitting a new 52-week low of 46 cents.
The Wall Street Journal reported the telecom equipment company hired legal counsel to explore bankruptcy court protection from creditors. Nortel responded that it is "a viable partner for the long term" and noted it has no debt maturity until 2011.
George Weston Ltd. (TSX:WN) shares climbed $1.48 to $62.40 after it announced the sale of its fresh baked-goods business in the United States to Grupo Bimbo of Mexico for US$2.5 billion.
MDS said its revenue and operating profit are below previous guidance, and it is taking a US$260-million writeoff of the MAPLE medical-isotope reactor, along with a goodwill writedown of as much as $370 million at its MDS Pharma Services division. Its shares closed up three cents at $8 after hitting a new 52-week low of $6.82.
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Roger Biduk - Commoditites Lead Bay Street at Midday
Roger Biduk writes:
Toronto's main stock index shot higher on Wednesday morning on higher oil and metals prices and as optimism over global stimulus measures, including a possible bailout of the U.S. auto industry, lifted market sentiment.
The resource-laden materials sector led the way up, climbing 8.1 percent, with Barrick Gold up 7.6 percent at C$37.75, and Goldcorp up 9.7 percent at C$33.94.
Mining stocks rose as global miner Rio Tinto said it would cut 14,000 jobs, slash capital spending by more than half and sell more assets as it battles a collapse in commodity prices.
The beaten-down resource stocks were higher, in part, in response to the news, analysts say.
The TSX's two big fertilizer companies were stronger. Agrium Inc rose 6.2 percent to C$37.05, and Potash Corp of Saskatchewan was up 8 percent at C$84.41.
Financials were down 0.7 percent with Great-West Lifeco Inc sinking 7.6 percent to C$20.60 after it said on Tuesday it plans to issue a total of C$1 billion in common shares to the public and to its controlling shareholder, Power Financial Corp .
Shares of George Weston Ltd rose 2.3 percent to C$62.30 after Mexico's Bimbo said on Wednesday it had reached an agreement to buy Weston's U.S. breadmaking unit for $2.38 billion.
Nortel Networks Corp sank 21.9 percent to 50 Canadian cents after the Wall Street Journal reported the telecoms equipment maker has sought legal advice on a bankruptcy protection scenario in the event that its restructuring plan fails.
Nortel spokesman told Reuters "no bankruptcy filing is imminent, but added the company has engaged advisers to help it plot its future.
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Toronto's main stock index shot higher on Wednesday morning on higher oil and metals prices and as optimism over global stimulus measures, including a possible bailout of the U.S. auto industry, lifted market sentiment.
The resource-laden materials sector led the way up, climbing 8.1 percent, with Barrick Gold up 7.6 percent at C$37.75, and Goldcorp up 9.7 percent at C$33.94.
Mining stocks rose as global miner Rio Tinto said it would cut 14,000 jobs, slash capital spending by more than half and sell more assets as it battles a collapse in commodity prices.
The beaten-down resource stocks were higher, in part, in response to the news, analysts say.
The TSX's two big fertilizer companies were stronger. Agrium Inc rose 6.2 percent to C$37.05, and Potash Corp of Saskatchewan was up 8 percent at C$84.41.
Financials were down 0.7 percent with Great-West Lifeco Inc sinking 7.6 percent to C$20.60 after it said on Tuesday it plans to issue a total of C$1 billion in common shares to the public and to its controlling shareholder, Power Financial Corp .
Shares of George Weston Ltd rose 2.3 percent to C$62.30 after Mexico's Bimbo said on Wednesday it had reached an agreement to buy Weston's U.S. breadmaking unit for $2.38 billion.
Nortel Networks Corp sank 21.9 percent to 50 Canadian cents after the Wall Street Journal reported the telecoms equipment maker has sought legal advice on a bankruptcy protection scenario in the event that its restructuring plan fails.
Nortel spokesman told Reuters "no bankruptcy filing is imminent, but added the company has engaged advisers to help it plot its future.
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Tuesday, December 9, 2008
Roger Biduk - Recession Hits Bay Street
Roger Biduk writes:
The Toronto stock market dropped more than 150 points Tuesday as the Bank of Canada declared the economy was moving into a recession and cut its main interest rate by three-quarters of a point to 1.5 per cent.
Bank stocks led the way down as Toronto's S&P/TSX composite index fell 169.56 points or two per cent to 8,397.56.
The TSX Venture Exchange closed down 12.16 points to 686.02.
The big interest rate cut by the central bank and a new equity issue by the Royal Bank (TSX:RY) pushed the financial sector down more than five per cent.
The banks also held back from passing the whole three-quarter-point policy rate cut along to their customers, trimming the prime lending rate by half a point.
RBC lost $2.21 to $35.29 after announcing a new issue up to $2.3 billion worth of common stock. TD was down $3.40 to $42.10 and CIBC shed $2.96 to $50.31.
The loonie closed down 0.66 cents at 79.08 cents U.S., after dropping more than a cent shortly after the central bank cut its key rate to the lowest level since 1958 and added that "the global recession will be broader and deeper than previously anticipated."
In Toronto, the telecom sector was off 2.25 per cent as BCE Inc. (TSX:BCE) fell $2.15 to $22.50 after the company said it has hired accounting firm PricewaterhouseCoopers to help make its case to KPMG auditors who ruled it did not meet a key condition of its deal to be acquired by a group led by the Ontario Teachers' Pension Plan.
The industrial sector gave back 1.4 per cent as Canadian National Railway (TSX:CNR) declined $1.56 to $42.75.
The energy sector was flat as oil prices flattened on expectations of weakening demand. The January crude contract in New York declined $1.64 to US$42.07 a barrel after rising almost US$3 Monday.
On the TSX, Canadian Natural Resources (TSX:CNQ) lost $1.30 to $40.90 while Suncor Inc. (TSX:SU) improved 67 cents to $23.97.
Crescent Point Energy Trust (TSX:CPG.UN) was up 78 cents to $21.59 as it set its 2009 capital budget at $225 million and said it expects to boost oil production by four per cent.
Major Drilling Group International Inc. (TSX:MDI) eased 97 cents to $9.99 after an August-October profit of $29.3 million, up from $22.6 million a year ago, as revenue rose 22 per cent. However, the global provider of mine-drilling services warned of a slowdown next year, especially in base metals.
The gold sector rose 1.45 per cent with the February bullion contract ahead $4.90 to US$774.20. Barrick Gold Corp. (TSX:ABX) faded 75 cents to $35.10.
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The Toronto stock market dropped more than 150 points Tuesday as the Bank of Canada declared the economy was moving into a recession and cut its main interest rate by three-quarters of a point to 1.5 per cent.
Bank stocks led the way down as Toronto's S&P/TSX composite index fell 169.56 points or two per cent to 8,397.56.
The TSX Venture Exchange closed down 12.16 points to 686.02.
The big interest rate cut by the central bank and a new equity issue by the Royal Bank (TSX:RY) pushed the financial sector down more than five per cent.
The banks also held back from passing the whole three-quarter-point policy rate cut along to their customers, trimming the prime lending rate by half a point.
RBC lost $2.21 to $35.29 after announcing a new issue up to $2.3 billion worth of common stock. TD was down $3.40 to $42.10 and CIBC shed $2.96 to $50.31.
The loonie closed down 0.66 cents at 79.08 cents U.S., after dropping more than a cent shortly after the central bank cut its key rate to the lowest level since 1958 and added that "the global recession will be broader and deeper than previously anticipated."
In Toronto, the telecom sector was off 2.25 per cent as BCE Inc. (TSX:BCE) fell $2.15 to $22.50 after the company said it has hired accounting firm PricewaterhouseCoopers to help make its case to KPMG auditors who ruled it did not meet a key condition of its deal to be acquired by a group led by the Ontario Teachers' Pension Plan.
The industrial sector gave back 1.4 per cent as Canadian National Railway (TSX:CNR) declined $1.56 to $42.75.
The energy sector was flat as oil prices flattened on expectations of weakening demand. The January crude contract in New York declined $1.64 to US$42.07 a barrel after rising almost US$3 Monday.
On the TSX, Canadian Natural Resources (TSX:CNQ) lost $1.30 to $40.90 while Suncor Inc. (TSX:SU) improved 67 cents to $23.97.
Crescent Point Energy Trust (TSX:CPG.UN) was up 78 cents to $21.59 as it set its 2009 capital budget at $225 million and said it expects to boost oil production by four per cent.
Major Drilling Group International Inc. (TSX:MDI) eased 97 cents to $9.99 after an August-October profit of $29.3 million, up from $22.6 million a year ago, as revenue rose 22 per cent. However, the global provider of mine-drilling services warned of a slowdown next year, especially in base metals.
The gold sector rose 1.45 per cent with the February bullion contract ahead $4.90 to US$774.20. Barrick Gold Corp. (TSX:ABX) faded 75 cents to $35.10.
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Roger Biduk - Bay Street Lower at Midday
Roger Biduk writes:
Blue chips in Toronto were sinking Tuesday afternoon, led by a drop in financial stocks after the Bank of Canada unexpectedly cut its key interest rate on Tuesday by three-quarters of a percentage point to a 50-year low of 1.50 percent and declared the Canadian economy to be in a recession.
The S&P/TSX composite index was off 79.87 points to 8,487.25.
The Canadian dollar, meanwhile, was trading 0.59 cents lower at 79.19 cents US.
Six of the TSX sub-groups traded higher this afternoon -- health-care stocks were up 3.05 percent followed by a 1.34 percent gain in gold issues and 0.95 percent rise in energy stocks.
Gold was gaining 40 cents to $769.70 US an ounce.
On the downside -- financial stocks fell 3.76 percent; telecom issues shed 2.18 percent and consumer discretionary stocks dipped 1.75 percent.
Meanwhile, the TSX Venture Exchange slipped 8.55 points to 689.63 and the NASDAQ Canada was off 5.32 points at 406.11.
On the corporate front -- Canada's largest bank Royal Bank of Canada says it plans to issue up to $2.3 billion in common shares to beef up its regulatory capital ratio.
Davie Yards Inc. has announced an agreement to get a US$10-million financial injection from shipbuilder Bergen Group of Norway and Davie client Cecon ASA, a Norwegian subsea installation contractor.
Major Drilling Group International Inc. climbed 15 cents to $11.11 after an August-October profit of $29.3 million, up from $22.6 million a year ago, as revenue rose 22 per cent. However, the global provider of mine-drilling services warned of a slowdown next year, especially in base metals.
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Blue chips in Toronto were sinking Tuesday afternoon, led by a drop in financial stocks after the Bank of Canada unexpectedly cut its key interest rate on Tuesday by three-quarters of a percentage point to a 50-year low of 1.50 percent and declared the Canadian economy to be in a recession.
The S&P/TSX composite index was off 79.87 points to 8,487.25.
The Canadian dollar, meanwhile, was trading 0.59 cents lower at 79.19 cents US.
Six of the TSX sub-groups traded higher this afternoon -- health-care stocks were up 3.05 percent followed by a 1.34 percent gain in gold issues and 0.95 percent rise in energy stocks.
Gold was gaining 40 cents to $769.70 US an ounce.
On the downside -- financial stocks fell 3.76 percent; telecom issues shed 2.18 percent and consumer discretionary stocks dipped 1.75 percent.
Meanwhile, the TSX Venture Exchange slipped 8.55 points to 689.63 and the NASDAQ Canada was off 5.32 points at 406.11.
On the corporate front -- Canada's largest bank Royal Bank of Canada says it plans to issue up to $2.3 billion in common shares to beef up its regulatory capital ratio.
Davie Yards Inc. has announced an agreement to get a US$10-million financial injection from shipbuilder Bergen Group of Norway and Davie client Cecon ASA, a Norwegian subsea installation contractor.
Major Drilling Group International Inc. climbed 15 cents to $11.11 after an August-October profit of $29.3 million, up from $22.6 million a year ago, as revenue rose 22 per cent. However, the global provider of mine-drilling services warned of a slowdown next year, especially in base metals.
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Monday, December 8, 2008
Roger Biduk - Bay Street Soars Over 400 Points
Roger Biduk writes:
The Toronto stock market posted a gain of more than 400 points on Monday, led by solid advances in energy and financial stocks.
Toronto's S&P/TSX composite index surged 450.09 points or 5.55 per cent to 8,567.12, while New York's Dow Jones industrial average moved up 298.76 points to 8,934.18.
TSX Venture Exchange moved up 13.61 points to 697.92.
The Canadian dollar climbed 1.06 cents to 79.74 cents U.S. as traders looked ahead to an expected interest-rate cut of at least a half percentage point by the Bank of Canada on Tuesday.
The TSX energy sector moved up 7.5 per cent as oil prices bounced off multi-year lows after the president of the Organization of Petroleum Exporting Countries hinted at a "severe" production cut at OPEC's meeting Dec. 17. Light sweet crude rose $2.90 to US$43.71 a barrel on the New York Mercantile Exchange.
EnCana Corp. (TSX:ECA) shot up $4.75 to $55.61 on the TSX while Canadian Natural Resources (TSX:CNQ) gained $2.87 to $42.20.
Financials climbed 4.25 per cent as Royal Bank (TSX:RY) rose $1.10 to $37.50 and CIBC (TSX:CM) advanced $3.52 to $53.27.
The base-metals sector climbed 11 per cent while copper surged 12.45 cents to US$1.498 a pound, sending Teck Cominco Ltd. (TSX:TCK.B) up 32 cents to $4.25. FNX Mining Co. (TSX:FNX) added 37 cents or 17 per cent to $2.54.
Gold stocks ran up as bullion rose $17.10 to US$769.30 an ounce. Goldcorp Inc. (TSX:G) gained $2.45 to $30.30.
Other prominent stocks taking the TSX higher Potash Corp., up $9.49 or 14 per cent, to $76.99 while shares in BCE Inc. (TSX:BCE) gained $1.80 or 7.9 per cent to $24.65 on a report the telecom has a new auditor's opinion that the company would be solvent after a leveraged buyout by a group led by the Ontario Teachers' Pension Plan.
The deal had appeared dead last week after KPMG ruled BCE would not meet a key solvency test after taking on more than $30 billion in debt, as contemplated in the takeover. That solvency test is a condition of the deal.
JLL Partners Inc. of New York has made a bid for the 71 per cent of Patheon Inc. (TSX:PTI) it does not already own, offering US$2 per share for the international drug manufacturer. Patheon shares rocketed $1.12 or 104.6 per cent to C$2.19.
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The Toronto stock market posted a gain of more than 400 points on Monday, led by solid advances in energy and financial stocks.
Toronto's S&P/TSX composite index surged 450.09 points or 5.55 per cent to 8,567.12, while New York's Dow Jones industrial average moved up 298.76 points to 8,934.18.
TSX Venture Exchange moved up 13.61 points to 697.92.
The Canadian dollar climbed 1.06 cents to 79.74 cents U.S. as traders looked ahead to an expected interest-rate cut of at least a half percentage point by the Bank of Canada on Tuesday.
The TSX energy sector moved up 7.5 per cent as oil prices bounced off multi-year lows after the president of the Organization of Petroleum Exporting Countries hinted at a "severe" production cut at OPEC's meeting Dec. 17. Light sweet crude rose $2.90 to US$43.71 a barrel on the New York Mercantile Exchange.
EnCana Corp. (TSX:ECA) shot up $4.75 to $55.61 on the TSX while Canadian Natural Resources (TSX:CNQ) gained $2.87 to $42.20.
Financials climbed 4.25 per cent as Royal Bank (TSX:RY) rose $1.10 to $37.50 and CIBC (TSX:CM) advanced $3.52 to $53.27.
The base-metals sector climbed 11 per cent while copper surged 12.45 cents to US$1.498 a pound, sending Teck Cominco Ltd. (TSX:TCK.B) up 32 cents to $4.25. FNX Mining Co. (TSX:FNX) added 37 cents or 17 per cent to $2.54.
Gold stocks ran up as bullion rose $17.10 to US$769.30 an ounce. Goldcorp Inc. (TSX:G) gained $2.45 to $30.30.
Other prominent stocks taking the TSX higher Potash Corp., up $9.49 or 14 per cent, to $76.99 while shares in BCE Inc. (TSX:BCE) gained $1.80 or 7.9 per cent to $24.65 on a report the telecom has a new auditor's opinion that the company would be solvent after a leveraged buyout by a group led by the Ontario Teachers' Pension Plan.
The deal had appeared dead last week after KPMG ruled BCE would not meet a key solvency test after taking on more than $30 billion in debt, as contemplated in the takeover. That solvency test is a condition of the deal.
JLL Partners Inc. of New York has made a bid for the 71 per cent of Patheon Inc. (TSX:PTI) it does not already own, offering US$2 per share for the international drug manufacturer. Patheon shares rocketed $1.12 or 104.6 per cent to C$2.19.
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Sunday, December 7, 2008
Roger Biduk - Late Day Recovery on Bay Street
Roger Biduk writes;
The Toronto stock market staged a late day recovery to close higher as financials largely turned positive amid pessimism about the economy and lower commodity prices.
Toronto's S&P/TSX composite index rose 59.21 points to 8,117.03 with losses led by energy stocks, as investors also took in grim Canadian data.
The TSX Venture Exchange was 13.55 points lower to 684.31.
The Canadian dollar closed up 0.44 cents at 78.68 cents U.S.
Despite the late day rally, it was still a brutal week on the TSX, which tumbled 12.4 per cent thanks to big declines in all the major sectors of the market.
In Canada, Statistics Canada reported the economy shed 70,600 jobs last month, the biggest one-month drop since 1982, and the unemployment rate rose to 6.3 per cent. And analysts warned investors to expect more awful data.
The TSX energy sector was down 0.55 per cent as the January crude contract in New York slid $2.86 to US$40.81 a barrel, plunging 25 per cent this week on growing worries about demand in the face of worsening economic conditions.
EnCana Corp. (TSX:ECA) rose $1.04 to $50.86, while Canadian Natural Resources (TSX:CNQ) fell $1.67 to $39.33.
The Toronto financial sector also got a boost from the news, ending the day up 2.6 per cent after Royal Bank (TSX:RY) reported a 15 per cent decline in quarterly profit to $1.12 billion, as revenue sagged 10 per cent to $5.07 billion. Its shares moved down 77 cents to $36.40.
Laurentian Bank's (TSX:LB) fourth-quarter profit edged down to $27.3 million from $30.2 million a year ago. Its shares were down $2.63 to $32.90.
Canadian insurers also enjoyed a bounce with Manulife Financial (TSX:MFC) up $1.33 to $20.80 and Sun Life Financial (TSX:SLF) ahead $1.84 to $26.20.
BCE Inc. (TSX:BCE) was down 10 cents to $22.85 after the telecom company denied rumours that the investment group led by the Ontario Teachers' Pension Plan is proposing to take a minority holding. BCE stock had risen four per cent Thursday on the speculation.
The base metals sector moved down 1.9 per cent as March copper prices moved down 9.6 cents to US$1.3735 a pound. Teck Cominco Ltd. (TSX:TCK.B) lost 12 cents to $3.93 and Sherritt International (TSX:S) moved down 15 cents to $2.92.
The gold sector faded 0.4 per cent as the February bullion contract declined $13.30 to US$752.20 an ounce. Goldcorp Inc. (TSX:G) was $1 lower to $27.85.
The tech sector turned supportive as Research In Motion Ltd. (TSX:RIM) advanced $2.46 to $50.36.
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The Toronto stock market staged a late day recovery to close higher as financials largely turned positive amid pessimism about the economy and lower commodity prices.
Toronto's S&P/TSX composite index rose 59.21 points to 8,117.03 with losses led by energy stocks, as investors also took in grim Canadian data.
The TSX Venture Exchange was 13.55 points lower to 684.31.
The Canadian dollar closed up 0.44 cents at 78.68 cents U.S.
Despite the late day rally, it was still a brutal week on the TSX, which tumbled 12.4 per cent thanks to big declines in all the major sectors of the market.
In Canada, Statistics Canada reported the economy shed 70,600 jobs last month, the biggest one-month drop since 1982, and the unemployment rate rose to 6.3 per cent. And analysts warned investors to expect more awful data.
The TSX energy sector was down 0.55 per cent as the January crude contract in New York slid $2.86 to US$40.81 a barrel, plunging 25 per cent this week on growing worries about demand in the face of worsening economic conditions.
EnCana Corp. (TSX:ECA) rose $1.04 to $50.86, while Canadian Natural Resources (TSX:CNQ) fell $1.67 to $39.33.
The Toronto financial sector also got a boost from the news, ending the day up 2.6 per cent after Royal Bank (TSX:RY) reported a 15 per cent decline in quarterly profit to $1.12 billion, as revenue sagged 10 per cent to $5.07 billion. Its shares moved down 77 cents to $36.40.
Laurentian Bank's (TSX:LB) fourth-quarter profit edged down to $27.3 million from $30.2 million a year ago. Its shares were down $2.63 to $32.90.
Canadian insurers also enjoyed a bounce with Manulife Financial (TSX:MFC) up $1.33 to $20.80 and Sun Life Financial (TSX:SLF) ahead $1.84 to $26.20.
BCE Inc. (TSX:BCE) was down 10 cents to $22.85 after the telecom company denied rumours that the investment group led by the Ontario Teachers' Pension Plan is proposing to take a minority holding. BCE stock had risen four per cent Thursday on the speculation.
The base metals sector moved down 1.9 per cent as March copper prices moved down 9.6 cents to US$1.3735 a pound. Teck Cominco Ltd. (TSX:TCK.B) lost 12 cents to $3.93 and Sherritt International (TSX:S) moved down 15 cents to $2.92.
The gold sector faded 0.4 per cent as the February bullion contract declined $13.30 to US$752.20 an ounce. Goldcorp Inc. (TSX:G) was $1 lower to $27.85.
The tech sector turned supportive as Research In Motion Ltd. (TSX:RIM) advanced $2.46 to $50.36.
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