Hi-tech churns while resources
U-turn
By CP
TORONTO -- Hi-tech titans JDS Fitel Inc. and Newbridge
Networks Corp. went for wild rides on the market yesterday as
investors moved cash from tech and banking stocks to resource
sectors.
Shares in Canadian resource companies soared higher as the
market continued to lap up commodity stocks. The TSE 300
came within reach of 7,000 after gaining 41 points to close at
6,990.49.
Investors continued to move cash into under-valued cyclical
stocks. In Toronto, the exodus from Internet-related stocks was
most noticeable with companies like TD Bank, which dropped
$2.25 to $80.70. TD has been flying as of late due to its
Internet-based on-line brokerage businesses.
JDS Fitel, which reported record-breaking results Wednesday,
spent a manic day on the market. The stock veered from a low of
$75 to a high of $100 before closing at $94.60, down $1.65.
Newbridge also made dramatic moves. The stock went from a
low of $47.75 during the day to hit a peak of $55.90 before
ending the session at $52.80, up $2.85.
A story circulating in the afternoon positioned Newbridge as a
potential takeover target from Ericsson AB, said Rob MacLellan,
an analyst with CT Securities in Toronto.
Ericsson is rumoured to be in the market for an ATM switch
vendor, a market that Newbridge leads. MacLellan discounted
the suggestion, pointing out that Ericsson bought Torrent
Networking Technologies Corp. Tuesday for $450 million and
TouchWave Inc. for $46 million.
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