Stocks Rally in Toronto and Mexico; European Markets Finish Mostly Lower
NEW YORK -- Stocks rallied in Toronto as investors cheered as-expected earnings from market bellwether Nortel Networks, and shares also closed solidly higher in Mexico City, helped by strong gains in financial shares.
Earlier, European stock markets finished mostly lower, while shares in Tokyo posted their sixth-consecutive advance.
In Toronto, the TSE Composite index rose 262.01, or 2.9%, to 9161.07.
Nortel Networks, which late Thursday reported fourth-quarter results that matched expectations, surged 11%. The networking-equipment giant carries about a 30% weighting on the TSE index, by far the biggest weighting of any stock in the market. Other technology shares, including JDS Uniphase, Research In Motion and C-MAC Industries all closed higher.
Banking issues also performed well, with Royal Bank of Canada, Canadian Imperial Bank of Commerce and Bank of Nova Scotia all advancing.
In Mexico City, the IPC index gained 73.19, or 1.2%, to 6267.49.
The market got a boost as Grupo Financiero Banamex-Accival announced it would pay a dividend for the first time in six years. The news followed Wednesday's better-than-expected earnings report. Banacci shares closed up 3.2%. Rival BBVA- Bancomer gained 4.4%, while bellwether Telefonos de Mexico added 2%.
In Sao Paulo, the Bovespa index edged up 8.63 points to 17530.09. Tele Centro Oeste surged 6.5% on talk that Portugal Telecom was moving to buy the company. Both companies denied the rumors.
On Wall Street, the Dow Jones Industrial Average surrendered 90.69, or 0.9%, to 10587.59, while the Nasdaq Composite Index edged up 1.89 to 2770.38.
In London, the Financial Times Stock Exchange 100 Share Index slipped 0.6 point to close at 6209.3. The index had been up 66 points in earlier trading.
Telecommunications shares put in a strong showing in an otherwise lackluster market. Redstone Telecom, up 24%, led gainers in the sector. Heavyweight Vodafone Group, Colt Telecommunications and British Telecommunications all closed higher.
In Paris, the CAC 40 Index closed down 14.43, or 0.3%, at 5845.73.
In Frankfurt, the Xetra DAX Index finished up 15.77, or 0.2%, at 6651.53.
Major market indexes finished down 1.1% in Madrid, 0.9% in Zurich, 0.8% in Amsterdam and 0.5% in Milan. Stocks in Stockholm ended mixed, but heavyweights Ericsson and Nokia closed lower.
Select technology shares advanced. Alcatel rose 1% in Paris, helped by a report that it will supply France Telecom's mobile-phone service Itineris with equipment for its third-generation network, as well as the positive results of competitor Nortel Networks.
Chip-equipment manufacturer ASM Lithography gained 4.1% after Goldman Sachs strongly reiterated its recommended list rating for the Dutch company and its target for the share price. The investment bank said ASML's 2000 results, released Thursday, were significantly above its expectations.
EM.TV jumped 23% on Frankfurt's Neuer Markt after a report said a group of investors is launching a counter bid to rescue the embattled television production company. German media group Kirch announced in December it would buy a stake of up to 16.75% of the company.
But shares of food company Danone dropped 3.7% in Paris amid mounting pressure from workers protesting its restructuring plans.
Stock of Barclays Bank fell 2.1% amid speculation surrounding its exposure to the growing California utility crisis.
In Tokyo, the benchmark Nikkei 225 index climbed 115.20 points, or 0.8%, to close at 13989.12, its longest winning streak since October 1999. However, decliners edged advancers by about 7 to 6.
The Nikkei has rebounded nearly 800 points in the last six sessions, after hitting a 27-month closing low of 13201.07 on Jan. 11.
Tokyo shares also rose amid continued hopes for stock market-supporting measures from the ruling Liberal Democratic Party, whose policy chief, Shizuka Kamei, underscored the likelihood that the government will intervene by saying that share prices shouldn't be left to market forces.
The Nasdaq's 3.2% rise in the U.S. Thursday sent a number of Internet-related stocks sharply higher. Softbank rose 10%, Yahoo Japan rallied 15% and Hikari Tsushin added 16%.
Sony, NEC, Fujitsu and Nippon Telegraph and Telephone all ended higher.
Shares of Mitsubishi Motors rose 5.3% after company President Takashi Sonobe said the auto maker will outline a restructuring plan by the end of February. The company also announced the appointment of Chief Operating Officer Rolf Eckrodt, who was dispatched from DaimlerChrysler.
In Hong Kong, shares rallied, with telecom and tech issues leading the way. The Hang Seng Index rose 404.80 points, or 2.6%, to 15933.55, its highest closing level since Oct. 5.
Mainland computer maker Legend racked up a 12% gain to pace the blue-chip surge.
Internet and telecom play Pacific Century CyberWorks rose 8.8% on talk it is actively seeking for a buyer for a stake in the company that the United Kingdom's Cable & Wireless will be allowed to sell next month.
Conglomerate Hutchison Whampoa rose 5.1% after saying it won't bid for Australia's Cable & Wireless Optus.
In Manila, Philippine shares rose on a technical rebound following losses in previous sessions, traders said. The 30-company Philippine Stock Exchange Index ended up 14.72 points, or 1%, at 1452.93.
Friday's gains, however, may not be sustainable following a tense confrontation in the financial district of Makati between supporters of President Joseph Estrada and those calling for his ouster. The confrontation took place shortly after stock trading ended.
Mass protests calling for the resignation of Mr. Estrada broke out soon after the Senate voted to suppress vital evidence against Mr. Estrada during his impeachment trial Tuesday.
In Seoul, share prices jumped almost 3% on strong foreign buying despite profit-taking by local investors ahead of next week's Lunar New Year holiday. The Korea Composite Stock Price Index, or Kospi, rose 15.73 points, or 2.6%, to close at 619.78 -- its highest finish since Sept. 15.
Semiconductor shares rose sharply on expectation of a recovery in the industry this year. Samsung Electronics added 4.6%, Hyundai Electronics jumped 5.1% and Anam Semiconductor jumped the 15% daily limit.
Elsewhere in Asia, the Nasdaq's gains unleashed a buying spree in tech issues. Singapore's Straits Times index 19.30 points, or 1%, to 1906.89. In Bangkok, the Stock Exchange of Thailand index rose 2.60 points, or 0.8%, to 316.86 and the Kuala Lumpur Stock Exchange composite index of Malaysian blue chips gained 10.58 points, or 1.6%, to 694.50. Jakarta's JSX index of Indonesian share prices, however, lost 4.787 points, or 1.2%, to 411.558 amid growing political uncertainties following a series of demonstrations against President Abdurrahman Wahid this week.
Markets in Taiwan are closed until Jan. 29 for the Chinese New Year.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.
Copyright (C) 2001 Dow Jones & Company, Inc. All Rights Reserved.
(%modification_date PT)
NEW YORK -- Stocks rallied in Toronto as investors cheered as-expected earnings from market bellwether Nortel Networks, and shares also closed solidly higher in Mexico City, helped by strong gains in financial shares.
Earlier, European stock markets finished mostly lower, while shares in Tokyo posted their sixth-consecutive advance.
In Toronto, the TSE Composite index rose 262.01, or 2.9%, to 9161.07.
Nortel Networks, which late Thursday reported fourth-quarter results that matched expectations, surged 11%. The networking-equipment giant carries about a 30% weighting on the TSE index, by far the biggest weighting of any stock in the market. Other technology shares, including JDS Uniphase, Research In Motion and C-MAC Industries all closed higher.
Banking issues also performed well, with Royal Bank of Canada, Canadian Imperial Bank of Commerce and Bank of Nova Scotia all advancing.
In Mexico City, the IPC index gained 73.19, or 1.2%, to 6267.49.
The market got a boost as Grupo Financiero Banamex-Accival announced it would pay a dividend for the first time in six years. The news followed Wednesday's better-than-expected earnings report. Banacci shares closed up 3.2%. Rival BBVA- Bancomer gained 4.4%, while bellwether Telefonos de Mexico added 2%.
In Sao Paulo, the Bovespa index edged up 8.63 points to 17530.09. Tele Centro Oeste surged 6.5% on talk that Portugal Telecom was moving to buy the company. Both companies denied the rumors.
On Wall Street, the Dow Jones Industrial Average surrendered 90.69, or 0.9%, to 10587.59, while the Nasdaq Composite Index edged up 1.89 to 2770.38.
In London, the Financial Times Stock Exchange 100 Share Index slipped 0.6 point to close at 6209.3. The index had been up 66 points in earlier trading.
Telecommunications shares put in a strong showing in an otherwise lackluster market. Redstone Telecom, up 24%, led gainers in the sector. Heavyweight Vodafone Group, Colt Telecommunications and British Telecommunications all closed higher.
In Paris, the CAC 40 Index closed down 14.43, or 0.3%, at 5845.73.
In Frankfurt, the Xetra DAX Index finished up 15.77, or 0.2%, at 6651.53.
Major market indexes finished down 1.1% in Madrid, 0.9% in Zurich, 0.8% in Amsterdam and 0.5% in Milan. Stocks in Stockholm ended mixed, but heavyweights Ericsson and Nokia closed lower.
Select technology shares advanced. Alcatel rose 1% in Paris, helped by a report that it will supply France Telecom's mobile-phone service Itineris with equipment for its third-generation network, as well as the positive results of competitor Nortel Networks.
Chip-equipment manufacturer ASM Lithography gained 4.1% after Goldman Sachs strongly reiterated its recommended list rating for the Dutch company and its target for the share price. The investment bank said ASML's 2000 results, released Thursday, were significantly above its expectations.
EM.TV jumped 23% on Frankfurt's Neuer Markt after a report said a group of investors is launching a counter bid to rescue the embattled television production company. German media group Kirch announced in December it would buy a stake of up to 16.75% of the company.
But shares of food company Danone dropped 3.7% in Paris amid mounting pressure from workers protesting its restructuring plans.
Stock of Barclays Bank fell 2.1% amid speculation surrounding its exposure to the growing California utility crisis.
In Tokyo, the benchmark Nikkei 225 index climbed 115.20 points, or 0.8%, to close at 13989.12, its longest winning streak since October 1999. However, decliners edged advancers by about 7 to 6.
The Nikkei has rebounded nearly 800 points in the last six sessions, after hitting a 27-month closing low of 13201.07 on Jan. 11.
Tokyo shares also rose amid continued hopes for stock market-supporting measures from the ruling Liberal Democratic Party, whose policy chief, Shizuka Kamei, underscored the likelihood that the government will intervene by saying that share prices shouldn't be left to market forces.
The Nasdaq's 3.2% rise in the U.S. Thursday sent a number of Internet-related stocks sharply higher. Softbank rose 10%, Yahoo Japan rallied 15% and Hikari Tsushin added 16%.
Sony, NEC, Fujitsu and Nippon Telegraph and Telephone all ended higher.
Shares of Mitsubishi Motors rose 5.3% after company President Takashi Sonobe said the auto maker will outline a restructuring plan by the end of February. The company also announced the appointment of Chief Operating Officer Rolf Eckrodt, who was dispatched from DaimlerChrysler.
In Hong Kong, shares rallied, with telecom and tech issues leading the way. The Hang Seng Index rose 404.80 points, or 2.6%, to 15933.55, its highest closing level since Oct. 5.
Mainland computer maker Legend racked up a 12% gain to pace the blue-chip surge.
Internet and telecom play Pacific Century CyberWorks rose 8.8% on talk it is actively seeking for a buyer for a stake in the company that the United Kingdom's Cable & Wireless will be allowed to sell next month.
Conglomerate Hutchison Whampoa rose 5.1% after saying it won't bid for Australia's Cable & Wireless Optus.
In Manila, Philippine shares rose on a technical rebound following losses in previous sessions, traders said. The 30-company Philippine Stock Exchange Index ended up 14.72 points, or 1%, at 1452.93.
Friday's gains, however, may not be sustainable following a tense confrontation in the financial district of Makati between supporters of President Joseph Estrada and those calling for his ouster. The confrontation took place shortly after stock trading ended.
Mass protests calling for the resignation of Mr. Estrada broke out soon after the Senate voted to suppress vital evidence against Mr. Estrada during his impeachment trial Tuesday.
In Seoul, share prices jumped almost 3% on strong foreign buying despite profit-taking by local investors ahead of next week's Lunar New Year holiday. The Korea Composite Stock Price Index, or Kospi, rose 15.73 points, or 2.6%, to close at 619.78 -- its highest finish since Sept. 15.
Semiconductor shares rose sharply on expectation of a recovery in the industry this year. Samsung Electronics added 4.6%, Hyundai Electronics jumped 5.1% and Anam Semiconductor jumped the 15% daily limit.
Elsewhere in Asia, the Nasdaq's gains unleashed a buying spree in tech issues. Singapore's Straits Times index 19.30 points, or 1%, to 1906.89. In Bangkok, the Stock Exchange of Thailand index rose 2.60 points, or 0.8%, to 316.86 and the Kuala Lumpur Stock Exchange composite index of Malaysian blue chips gained 10.58 points, or 1.6%, to 694.50. Jakarta's JSX index of Indonesian share prices, however, lost 4.787 points, or 1.2%, to 411.558 amid growing political uncertainties following a series of demonstrations against President Abdurrahman Wahid this week.
Markets in Taiwan are closed until Jan. 29 for the Chinese New Year.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.
Copyright (C) 2001 Dow Jones & Company, Inc. All Rights Reserved.
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