MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING THURSDAY, MARCH 19, 1998 (1)
Friday, March 20, 1998
Reports of continued low inflation helped boost U.S. shares to another record. It was a see-saw session on Bay Street, with shares first rising then falling as investors took profits in banking issues.
U.S. stocks rose for a third day as a government report suggested that inflation poses little threat to the bull market.
The Dow Jones industrial average rose 27.65 points, or 0.3%, to 8803.05 - its first close above 8800.
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The Standard & Poor's 500 index rose 4.22 points, or 0.4%, to 1089.74, also a record.
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The Nasdaq composite index climbed 11.7 points, or 0.7%, to 1799.98, a record high.
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Almost 591.1 million shares changed hands on the Big Board, down from 634 million shares traded on Wednesday.
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Telephone companies gained after British Telecommunications PLC said it wants to find a partner to enter the U.S. phone market, but was not interested in the Baby Bells. Still, Bell Atlantic Corp. (BEL/NYSE) rose US$3 to US$103. BT's American depository receipts (BTY/NYSE) rose US$63 1/84 to US$1131 1/84.
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J.P. Morgan & Co. (JPM/NYSE) led U.S. bank shares higher, rising US$3 11/16 to US$135 11/16 on expectations that the fourth-largest U.S. bank would be soon be sold.
Tobacco companies declined on concern that an Indiana court may rule today that cigarette makers are liable for illnesses caused by secondhand smoke. ÿPhilip Morris (MO/NYSE), which makes Marlboro cigarettes, fell US$1 to US41 7/16.
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Computer shares gained even as Rockwell International Corp. (ROK/NYSE) fell US$6 1/16 to US54 7/16 after warning it will report earnings far below forecasts because of slowing sales and falling prices for semiconductors.
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International Business Machines Corp. (IBM/NYSE) rose US$13 1/88 to US$102 15/16.
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The Wall Street Journal reported that William Etherington, IBM general manager, said he expects the European information-technology market to grow between 10% and 12% in 1998 because of strong economic growth and corporate restructuring.
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Canadian stocks fell, sent lower by major banks, Newcourt Credit Group Inc. and Ballard Power Systems Inc. as investors took profits.
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Oil stocks limited the decline, buoyed by steady crude prices on optimism the Organization of Petroleum-Exporting Countries may decide to cut back on production later this month.
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The TSE 300 composite index fell 44.54 points, or 0.6%, to 7382.22, in a see-saw session in which the index was toppled from an early 21.8-point gain. About 124.7 million shares changed hands on the TSE, compared with 107 million shares traded on Wednesday.ÿ"Banks have had a tremendous run and people are taking some money out and putting it into ... oil and high-techs," said Philip Strathy, portfolio manager with Strathy Investment Management Ltd.
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Canadian Imperial Bank of Commerce (CM/TSE) fell 95› to $48.30, Bank of Nova Scotia (BNS/TSE) dropped 60› to $36.65 and Royal Bank of Canada (RY/TSE) fell 40› to $86.40.
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Newcourt shares (NCT/TSE) fell $3.30 to $69.05 on concerns its share price may have overrun its earnings potential.
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Ballard shares (BLD/TSE) fell for a second day, plunging $11 to $161 as investors expressed concern the stock may be fully valued after gaining 47.7% this year.
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Suncor Energy Inc. (SU/TSE) rose $1.35 to $50.60, and Talisman Energy Inc. (TLM/TSE) gained $1.10 to $41.20.
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Stock prices and indexes fluctuated as investors and traders adjusted positions ahead of "triple witching" today, when stock and index options and index futures will expire simultaneously.
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Other Canadian markets were mixed.
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The Montreal Exchange portfolio fell 18.53 points, or 0.5%, to 3780.36.
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The Vancouver Stock Exchange index rose 3.6 points, or 0.6%, to 612.96.
For a scorecard of trading activity on all Canadian Stock Exchanges, go to:
quote.yahoo.com .
REFERENCE: Canadian Market Summary
canoe2.canoe.ca
ÿMajor international markets closed higher.
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London: British shares surged to their third consecutive record close. The FT-SE 100 climbed 94.3 points, or 1.6%, to 5,997.9.
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Frankfurt: The Dax index rose 16.6 points, or 0.3%, to 4,936.32.
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Tokyo: The 225-share Nikkei average closed up 59.34 points, or 0.3%, at 16,679.02.
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Hong Kong: The Hang Seng index climbed 323.39 points, or 2.9%, to 11,445.04.
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Sydney: The all ordinaries index rose three points to 2772.6.
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