TMCnet News
Slight gain for TSX(Baystreet Stock Market Update (Canada) Via Acquire Media NewsEdge) RIM among notable gainers The Toronto stock market started third-quarter trading Monday with a modest gain as investors reacted to a strong U.S. manufacturing report from Friday and higher oil and gold prices. However, gains were muted amid a fresh wave of worry about the possibility of Greece defaulting on its debt. By noon, the S&P/TSX Composite Index had picked up 68.99 points to 13,369.86 The Canadian dollar slid 0.25 cents to 104.09 cents U.S. American markets are shuttered for the July 4 holiday, but New York indexes ended last week with strong gains after the Institute for Supply Management reported its index for June showed that manufacturing activity unexpectedly picked up. The ISM said its index came in at 55.3, up from 53.5 in May and stronger than the 52 reading that economists expected. The report was particularly good news for investors who saw the TSX end the first half of the year down 1% year to date, partly because of concerns that the U.S. economy had hit a soft patch during the second quarter. Investors have also been discouraged by the European government debt crisis and in particular fears that Greece could end up defaulting on its massive debt. Sentiment last week was also lifted after Greek lawmakers backed austerity measures required from international creditors in return for more bailout cash. But there were fresh concerns Monday after Standard & Poor's warned that a recent French proposal to get banks involved in helping Greece would trigger a default on the country's debt. The S&P warning came a week after French banks said they were ready to help Greece by accepting a significant debt rollover. Germany's banks later said they were also considering helping out on similar terms. Among energy issues, Suncor Energy was ahead 49 cents to $38.29 while Cenovus Energy lost 47 cents to $35.93. The mining sector was up while the September copper contract was unchanged at $4.31 U.S. a pound. Teck Resources improved by $1.91 to $50.93 while Thompson Creek Metals advanced 37 cents to $10. The tech sector was also supportive with Research In Motion Ltd. ahead 40 cents to $28.28. RIM was part of a consortium of companies that paid a total of $4.5 billion in cash late last week for a portfolio of patents from Nortel Networks Corp. In the gold sector, Barrick Gold Corp. declined 30 cents to $43.49. On the corporate front, shares in Toronto-based miner Romarco Minerals Inc. fell 11 cents to $1.53 after U.S. regulators ordered an environmental impact study on the company's flagship Haile gold project in South Carolina. Romarco said it has invested more than $4 million in environmental studies on the Haile development and is confident the project will have minimal environmental impact and will meet or surpass current regulations. The president and chief executive officer of Sun Life Financial Inc., Donald Stewart, will retire on Nov. 30, the company announced Monday. Stewart, who under company policy will also retire from the Sun Life board, is being replaced as by Dean Connor, currently Sun Life's chief operating officer. Connor has also been appointed to the Sun Life board. Sun Life shares were up eight cents to $29.13. Canadian patent house Wi-LAN Inc. said Monday it has settled a lawsuit with Texas Instruments Inc. over Bluetooth technology for an undisclosed amount. Wi-LAN sued Texas Instruments in April 2010 as part of a broader series of suits against several of the world's high-tech heavyweights over allegations of Bluetooth technology infringement. Its shares gained 71 cents to $8.49. Economically speaking, Statistics Canada reported this morning that its Industrial Product Price Index (IPPI) edged down 0.2% between April and May, while the Raw Materials Price Index (RMPI) fell 5.2% over the same period. The major contributors to the declines were metals in the case of the IPPI and petroleum for the RMPI. ON BAYSTREET The TSX Venture Exchange gained 11.24 points to 1,915.42, while the Nasdaq Canada index moved forward 5.54 points to 560.03 In Toronto, all but two of the 14 subgroups surged. Metals and mining stocks led the way, up 2%, while information technology and material issues picked up 0.7% each The two laggards were gold and consumer discretionaries, subsiding 0.1% each. ON WALLSTREET U.S. markets were closed for the Fourth of July. They will return to business Tuesday. © 1998 - 2011 Baystreet.ca Media Corp. All rights reserved. |