MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING FRIDAY, MARCH 20, 1998 (1)
Saturday, March 21, 1998
Wall Street's breakneck advance continued, as money managers rushed to buy shares before the end of the quarter. Bay Street was back on its upward course, lifted by rising crude oil prices
The Dow Jones industrial average rose 103.38 points, or 1.2%, to 8906.43 - its fifth straight record and its first close above 8900. The average rose 3.5% on the week.
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The Standard & Poor's 500 index rose 9.42 points, or 0.9%, to a record 1099.16. It rose 2.9% for the week.
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The Nasdaq composite index fell 10.82 points, or 0.6%, to 1789.16 after topping 1800 for the first time intraday. Nonetheless it posted a 1% gain from last Friday.
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About 718.8 million shares changed hands on the Big Board, up from about 561.1 million shares traded on Thursday.
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Oil producers like Chevron Corp. rose on optimism that they will continue to make money even if they agree to cut production to bolster prices.
Members of the Organization of Petroleum-Exporting Countries are expected to meet March 30 to discuss the world oil glut.
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Chevron (CHV/NYSE) led the Dow higher, rising US$31 1/88 to US$86 15/16. Halliburton Co. (HAL/NYSE) rose US$23 1/88 to US$481 1/88, Exxon Corp. (XON/NYSE) rallied US$2 5/16 to US$671 1/88 and Mobil Corp. (MOB/NYSE) climbed US$3 3/16 to US$78 9/16.
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As more money comes into the stock market, investors are turning to oil companies, said Whit Maroney, a money manager at Greenville Capital Management in Rockland, Del.
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"These stocks look cheap because the price has come down but the outlook for earnings has stayed consistent," he said.
Tobacco companies rose after an Indiana jury rejected a US$6.4-billion claim against tobacco companies by the estate of Mildred Wiley, a non-smoker who died of lung cancer, in a second-hand smoke lawsuit.
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Philip Morris Cos. (MO/NYSE) rose US$1 13/16 to US$43 3/16, Loews Corp. (LTR/NYSE) jumped US$3 3/16 to US$107 9/16 and RJR Nabisco Holdings Corp. (RN/NYSE) climbed 3 1/88 to US$34 1/16.
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Canadian stocks rose, led by oil producers and pipelines, snapping a two-day decline as investors expressed optimism crude prices will rise after the OPEC meeting.
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The Toronto Stock Exchange 300 composite index rose 30.62 points, or 0.4%, to 7412.84. The index gained 0.4% on the week.
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About 100.2 million shares changed hands on the TSE, down from 124.7 million shares traded on Thursday.
Petro-Canada (PCA/TSE) gained 30› to $24.95, Talisman Energy Inc. (TLM/TSE) rose 80› to $42 and Gulf Canada Resources Ltd. (GOU/TSE) gained 20› to $8.20.
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Pipeline stocks staged their biggest one-day gain in seven weeks.
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The TSE pipeline subindex climbed 100.13 points, or 1.3%, to 6890.94.
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Westcoast Energy Inc. (W/TSE) gained $1.55 to $33.15, IPL Energy Inc. (IPL/TSE) rose 75› to $61.50 and TransCanada PipeLines Ltd. (TRP/TSE) climbed 15› to $32.80.
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Barrick Gold Corp. (ABX/TSE) gained 30› to $26.95, TVX Gold Inc. (TVX/TSE) climbed 30› to $4.20 and Meridian Gold Inc. (MNG/TSE) rose 65› to $4.25 as initial concern about the sale of bullion by the central bank of Belgium faded because the metal was sold to other central banks.
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Other Canadian markets rose.
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The Montreal Exchange portfolio climbed 4.99 points to 3785.35. For the week, it gained 0.8%.
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The Vancouver Stock Exchange closed at 616.03, up 3.07 points or 0.5%. For the week, it fell 1.6%.
For a scorecard of trading activity on all Canadian Stock Exchanges, go to:
quote.yahoo.com .
REFERENCE: Canadian Market Summary
canoe2.canoe.ca
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Major international markets finished widely mixed.
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London: Britain's FT-SE 100 index closed at 5956.3, down 41.6 points, or 0.7%, but it rose 3% over the week.
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Frankfurt: Germany's blue-chip Dax index posted a record high close above 5000 but off the day's peak. The Dax climbed to 5001.55, up 65.23 points, or 1.3%, and up 2.3% for the week.
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Tokyo: Japanese stocks ended moderately higher. The 225-share Nikkei average closed at 16,830.47, up 151.45 points, or 0.9%, but down 1.3% from last Friday.
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Hong Kong: Stocks erased some of their early gains but ended the week on a firm note as investors hoped Hong Kong banks would cut interest rates, brokers said. The Hang Seng index closed at 11,564.23, up 119.19 points, or 1%, a rise of 4.6% over the week.
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Sydney: An indecisive Australian stock market wandered to a slightly firmer finish on a strong performance from News Corp. The all ordinaries index closed at 2775.2, up 2.6 points, and up 1.6% over the week.
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