Friday's world markets turn up at the end, dollar hits '99 high
MICHAEL MACDONALD
TORONTO (CP) - The Canadian dollar closed Friday at a new 1999 high as traders continued to throw money at cyclical commodity stocks on the Toronto and New York equity markets.
The loonie, which also got a boost from a weakening U.S. dollar, gained 0.43 cents US to close at 67.61 cents US. The previous record high this year was 67.48, set in early February.
"This just falls in line with the whole commodity improvement theme," said a fixed income analyst who asked not to be named. "Most people are reasonably bullish about the dollar."
The Toronto Stock Exchange's main index poked above the 7,000 level Friday with the gold, oil, base metals and forestry stocks all performing well.
The TSE 300 added 22.74 to close at 7,013.23 for a weekly gain of 1.8 per cent. The index remains about 800 points below the record high reached last April.
The gold sector added a whopping 6.9 per cent and the oil stocks jumped 4.06 per cent Friday.
Futures prices for crude oil rose to their highest level in more than a year Friday amid concerns that the Organization of Petroleum Exporting Countries will follow through on promises for production cuts.
Meanwhile, the monthly spot price of bullion jumped 40 cents US to close at $284.10 US on New York's Mercantile Exchange.
Improving prices for commodities such as gold, oil and base metals has sparked a revival in the Canadian dollar because those buying Canada's natural resources will now need more loonies to fill their orders.
There is also widespread speculation about the improving economic fortunes in Asia, a region that has traditionally served as a strong market for Canada's raw materials.
That helps explain why the metals and mineral stock group gained 17.2 per cent this week.
Falconbridge gained 95 cents to $19.50 after reporting a first-quarter loss that was substantially smaller than the loss in the last three months of 1998.
Meanwhile, technology stocks endured another weak session Friday.
As a result, Bid.Com International Inc. - a Canadian auction site on the Internet - made an embarrassing debut on the TSE 300 index. The company's stock plunged $2.05 to close at $27.70 on 2.5 million shares traded.
Versus Technologies Inc. dropped $1.45 to $20.50 and Nortel Networks Ltd. fell $4.40 to $101.60 on 1.3 million shares traded.
However, the biggest loser Friday was the communications and media group, which dropped 2.75 per cent.
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