Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Kerm Yerman who wrote (11623)	7/7/1998 12:08:00 PM
From: Kerm Yerman	Respond to of 15196

MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING MONDAY, JULY 06, 1998 (3) TUESDAY MORNING UPDATE NYMEX Hub NatGas Expected To Test Support At Open NYMEX Hub natgas futures were expected to open about two cents lower Tuesday despite lingering heat in the South, industry sources said. In over-the-counter business this morning, August traded at $2.34-2.35 per mmBtu after settling lower Monday at $2.365 and extending the losses on ACCESS to a low of $2.34. Technically, August support was pegged at the double bottom at $2.34, and then at $2.32 and the low-$2.20s. Resistance was pegged at the 14-day moving average near $2.40, followed by $2.43 and last week's high of $2.52. Forecasts show continued heat in the South this week, with some highs expected to hit 100 degrees. In the Northeast and upper Midwest, near-normal temperatures are expected to be replaced with slightly cooler weather by Friday. A brief spell of warmer than normal weather is forecast for the central U.S. early next week, but cooler weather is expected to follow. Early injection estimates for Wednesday's weekly AGA storage report range from 50-100 bcf. For the same week last year, stocks gained 96 bcf. Tokyo Glides, Others Slide Nikkei gets tax lift; Singapore drops while HK pares gains to finish lower July 7, 1998: 6:12 a.m. ET TOKYO - Performance in the major Asian markets was once again mixed Tuesday, as Japanese tax debates and Singapore recession worries pulled markets in different directions. In Tokyo investor optimism was boosted by politicians' comments suggesting Japan would work toward permanent tax cuts after Sunday's election. Singapore suffered the biggest loss on predictions of a 1999 recession, while Hong Kong pared early gains to finish down half a percent. Sydney enjoyed a moderately positive day thanks to overseas gains. Tokyo stocks finished higher on optimism about the possibility of permanent tax cuts and a modestly strengthening yen. The key Nikkei 225 average rose 65.83, or 0.40 percent, to 16,416.28. The ruling Liberal Democratic Party's chief policy-maker, Taku Yamasaki, was quoted by the Jiji wire service as saying discussions on reforming the tax system were in their final stages. The comments bolstered optimism first sparked in the morning when Economic Planning Agency Minister Koji Omi told a news conference the government would begin consideration of permanent tax cuts after the July 12 Upper House election. Both comments came after a series of remarks by top members of the ruling Liberal Democratic -- including Prime Minister Ryutaro Hashimoto -- suggesting the administration was flip-flopping on the issue. "It's a question of when and how much," said Masayuki Nishina, a trader at New Japan Securities. "That's why the market has the support it has." Other traders agreed tax cuts were likely in the offing. "We've factored in possible permanent tax cuts to some extent," said a senior trader at a Japanese brokerage. "The government will be forced to introduce the cuts." Domestic critics and overseas allies alike have called for the tax cuts to stimulate the economy, which contracted in the first quarter. A stronger yen also helped sentiment, as well as banks. A weak yen hurts banks, forcing them to raise capital to meet international standards as the yen-value of their dollar-denominated loans to Asia rise. "Almost all of this is domestic investors," said a salesman for a second-tier brokerage. "And it will stay that way until the election is finished." Turnover was 544 million shares on the first section, up from 530 million on Monday. Advancers beat decliners 698 to 446, with 140 unchanged. By sector, services and machinery led the rise, while gas and real estate were the biggest losers. Singapore slides Singapore shares were battered from their morning highs to a lower close on Tuesday after Prime Minister Goh Chok Tong said Singapore was likely to slide into a recession in 1999. The Straits Times Industrials Index, which rose to 1,137.55 in the morning, slipped into negative territory. It ended at 1,115.18, down 12.33 points, or 1.09 percent. "This year we don't expect a recession unless things go terribly wrong in the last quarter," Goh told reporters after the opening of a national education exhibition. "But I think for next year, the possibility of a recession is fairly high." Goh's comments triggered falls in the Singapore stock market and sent the Singapore dollar sliding back towards the 1.70 to the U.S. dollar level. A week ago, Singapore cut its growth forecast for1998 to between 0.5 and 1.5 percent from 2.5 to 4.5 percent because of the Asian economic crisis. Concerns over Japan's economic reforms, notably its tax reforms, also continued to nag the market, dealers said. "Japan is still an issue," said a local broker. Interest from overseas funds, seen in late Monday trade, was limited on Tuesday, dealers said. "There is not much of a follow-through. The general feeling is that there is no rush to buy as the region will take some time to recover," a U.S. dealer said. Total market volume was a moderate 104 million shares, with 86 gainers and 209 losers. Hang Seng slips in light trade Hong Kong stocks slipped to a slightly lower close in light selling on Tuesday after a positive performance of the Tokyo market and Japanese yen, and brokers said local investors would remain cautious. The Hang Seng Index closed at its low for the day, down 39.94 points, or 0.47 percent, to 8,444.18. "No one is going to be jumping in and out of the market in the short term," Alistair Candlish, managing director of derivatives at Indosuez W.I. Carr Securities. "Not many shorts have been taken off, because everybody believes that in the balance we are going lower." Turnover fell to HK$2.95 billion, down from Monday's HK$3.12 billion. This was the market's lowest daily turnover since May 25 when turnover was HK$2.62 billion. Property shares and red chips led the market lower, while utilities inched ahead. Overseas markets boost Sydney The Australian share market ended a fairly uneventful Tuesday session 0.6 percent higher, tracking movements on U.S. and Japanese markets. The All Ordinaries index rose 17.5 points to 2,769.3 on turnover of A$966.1 million (US$594.2 million). "The overseas markets were reasonably good last night," said dealer Jim Tredenick of Nevitts. Sentiment and activity improved over the day from a dull start, but dealers said many investors remained unwilling to commit on a broad base until uncertainty over Japan's plans to boost its ailing economy had been removed. "People certainly seem to be favoring the secure top leaders, seen as a bit more recession-proof," said dealer Grant Williams of Reynolds & Co. One example was the two-week old listing of betting agency TAB, which rallied 12 cents to end at A$2.51 after hitting a high of A$2.52 under strong institutional demand. However, telecom group Telstra fell seven cents to A$4.39 after a recent rally based on its strong domestic earnings base. It hit a new high of A$4.49 on Monday. "It's just a bit of profit-taking after the strong gains," Tredenick said about Telstra. The banking sector gained 1.6 percent with support from the bond market. European Markets Gain Ground Helped by rise in Dow and Nikkei, DAX adds more than 1 percent July 7, 1998: 6:56 a.m. ET European stock markets opened firm on Tuesday following overnight gains in the United States and Asia, but continued tax debates in Japan kept traders on their tiptoes. London, Frankfurt and Paris stock exchanges all posted early gains in morning trade. Currency and debt markets, however, were a little more tentative. Uncertainty over whether Japan would make permanent tax cuts persuaded currency dealers to stand back. The dollar traded at 139.89 yen, little changed from 139.86 in late European trade on Monday. "The yen swings about, one moment there's optimism about tax cuts and the next minute the situation doesn't look so good," said Adam Cribben, assistant chief trader at Credit Lyonnais. "And there's no concrete news on it at the moment and I think that's why we're trading in a fairly tight range right now." The mark was softer across the board after yields on Russian Treasury bills rose by about 10 percentage points to 100 percent amid a deepening financial crisis. The mark is sensitive to the Russian economy because of German banks' exposure to the country. Elsewhere, oil prices were expected to weaken further because of a dispute over Iranian production. The key Brent future fell below $13 late on Monday after Venezuela accused its fellow OPEC member of producing more oil than the organization agreed in March. The 30-year Treasury closed at a record low yield of 5.57 percent amid skepticism over Japan's economic reforms. Frankfurt early to rise Germany booked the biggest gains among the equity markets, with leading shares climbing more than 1 percent in early trade. By late morning, the DAX was up 59.98 points, or 1.01 percent, to 5978.35. "Yesterday we experienced a bit of instability because we had a negative influence from the U.S., but (a positive close on Wall Street) is providing support today," one trader said. Volkswagen rose 2.9 percent to 195.5 marks. The world's fourth largest carmaker said last Friday it recorded its best U.S. monthly sales in June in nearly three decades. German bonds fell from record highs as the yen held below 140 to the dollar, with investors awaiting a clearer indication of Japan's plans for tax cuts. Germany's September Bund future was off 0.06 at 108.92. It set a new intraday high of 109.06 in early trading after U.S. Treasuries ended broadly higher overnight. London gains but eyes interest rates London's FTSE 100 index rose 0.6 percent in early trade to a four-week high following the overseas rallies, breaking back above 6000 points. But dealers expected further gains to be capped by caution ahead of a decision on British interest rates on Thursday. By late morning the FTSE was up 24.2 points, or 0.4 percent, to 6014.5. A 4.4 percent gain in Scottish Power fueled the advance, after a presentation to analysts on Monday heightened speculation that the utility would partially float its telecoms unit. Paris stocks weaker but well France was the weakest of the major European bourses Tuesday, with brokers saying the flow of funds into the market may dry up temporarily following a recent record run. In late morning trade, the CAC 40 benchmark was up 9.49 points, or 0.22 percent, to 4320.59. Alcatel was the biggest gainer among active stocks, rising 2.1 percent to 1,296 French francs following a recommendation from Salomon Smith Barney. Toronto stocks were expected to open on the upside on Tuesday, carried by Monday's upward momentum. But the U.S. dollar's slip against the Japanese yen could slow the pace or push investors out of defensive interest-sensitive shares into resource issues. "We are seeing a reversal in the dollar here today so interest-sensitive stocks should probably underperform resource stocks," said Levesque Beaubien Geoffrion liability trader David Jarvis. He noted that investors appear to be impelled by moves in the U.S. dollar against the Japanese yen to shift back and forth between the two sectors. The U.S. dollar slid against the yen as traders stood back to await clearer messages about the Japanese government's intentions to cut taxes. Asian markets climbed to close higher on Tuesday as Japan's policy-makers appeared to swing back toward plans to cut taxes. Markets are eagerly waiting a sign that Japan could reduce taxes in an attempt to drag the country out of recession. Gold prices were range-bound in London as players tried to sort through conflicting signals. The yellow metal fixed at US$293.10 in the morning, a shade lower than the previous afternoon's US$293.25. The Toronto Stock Exchange 300 Composite Index chugged 50.76 points or 0.69 percent higher to 7434.47 points. But the broader market was mixed with declines beating advances 534 to 460 with 270 unchanged. Astock to watch, Call-Net Enterprises Inc. shares could see some action after Sprint Canada introduced a flat rate long-distance calling plan allowing consumers unlimited use on evenings and weekends. "They're going for market share here," Jarvis said. U.S. stocks dipped on small profit taking in early trading Tuesday after their recent run-up on optimism that the market will extend its summer rally. Shortly after 10 a.m. EDT, the Dow Jones industrial average was off 1.75 points at 9,090.02 following a 66-point gain Monday. The Nasdaq composite index slipped 0.71 to 1,908.76. "There isn't anything I can see that will detract from yesterday's momentum," said Larry Wachtel, an analyst at Prudential Securities. In London stocks were mostly flat and in Tokyo the market edged slightly higher. The focus on second-quarter corporate earnings was expected to intensify with some major companies set to report their earnings. "We're now beginning to get the first flow of earnings reports, so this market is going to stay on edge," said Peter Cardillo, director of research at Westfalia Investments. "But I think it will be a case of individual stocks rather than the whole market suffering from a surprise in earnings." Computer chip and telecommunications equipment maker Motorola Inc. and Aluminum Co. of America were among the companies expected to report Tuesday. Motorola was up 3/16 at 53-13/16 and Alcoa was off 5/16 at 64-11/16. Yahoo Inc., a leader in the sizzling Internet sector, is scheduled to report Wednesday. The stock was off 4 at 195-1/4, sliding on profit taking. Gemstar International Group Ltd. rose 2 to 44-1/2 after United Video Satellite Group Inc. announced a $2.8 billion offer for the company. United Video was off 3/8 at 39.

To: Kerm Yerman who wrote (11623)	7/7/1998 12:25:00 PM
From: Kerm Yerman	Respond to of 15196

MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING MONDAY, JULY 06, 1998 (4) OIL & GAS Venezuela's Giusti Says Iran Overproduced CARACAS, July 6 - Luis Giusti, president of Venezuelan state oil company Petroleos de Venezuela (PDVSA), said Monday Iran was producing 230,000 barrels a day (bpd) above the level agreed by fellow OPEC members at an emergency meeting in March. ''We realized that the majority were complying with what was agreed...(but) Iran was pumping more than 230,000 bpd above what it had committed to,'' Giusti told reporters. In OPEC's emergency meeting in March, Iran agreed to cut its production of 3.623 million bpd by 140,000 bpd. Giusti said Iran's violation of its commitment, added to a 425,000 bpd increase in Iraqi output which was not included in the agreement, meant the Riyadh pact failed to have the desired impact. The cuts are referred to as the Riyadh pact because they were masterminded in a secret meeting between Venezuela, Mexico and Saudi Arabia in Riyadh shortly before OPEC's March meeting. OPEC as a whole agreed in March to cut 1.245 million bpd from its production, effective April 1, but independent analysts said only about 900,000 bpd was actually removed from the market. Last month, OPEC met again to slice another 1.355 million bpd off output, bringing the total agreed cuts to 2.6 million bpd. ''If the cuts materialize fully, prices should evolve favorably,'' Giusti said. WORLD CRUDE LONDON. July 6, - World oil prices slid below $13 a barrel on Monday after Venezuelan accusations that fellow OPEC heavyweight Iran had overproduced and predictions of a sharp increase in Iraq's crude exports. Benchmark Brent Blend closed down 57 cents at $12.98 a barrel after a wave of late selling. That is more than one dollar below levels seen last month when details emerged of OPEC's plan to cut production by 1.355 million barrels a day from July. The cuts were the third attempt by OPEC and non-OPEC members to cut output this year. Prices dropped several cents on Monday after the president of Venezuela's state oil company said Iran was producing 230,000 barrels per day (bpd) above a level agreed by fellow OPEC members in March. That revives concern of a rift among Organization for Petroleum Exporting Countries, even though many analysts say they expect prices to revive by year-end. Iran, OPEC's second largest producer after Saudi Arabia, agreed in June to cut output by a total of 305,000 bpd from a February benchmark of 3.62 million bpd. Analysts are skeptical that all members of the group will honor the pact, which aimed to shore up prices that recently fell to a 10-year low and lowered producers' income. "The market will be range-bound until we see the July production figures," said Peter Gignoux, head of the energy desk at Salomon Smith Barney. Further pressure on prices came from reports that Iraqi oil exports under the U.N.-monitored "food for oil" deal were likely to climb to 1.89 million bpd in July from 1.45 million bpd in June. NYMEX CRUDE Oil Prices Sink After Venezuelan Oil Strike Postponed Associated Press NEW YORK, July 6 (AP) -- Crude oil prices slipped in New York after a promised strike by Venezuelan oil workers failed to materialize. Oil prices had risen last week on expectations that the Venezuela strike would help trim oil supplies. The prospect of more tensions in Iraq had also helped lift oil prices after a U.S. fighter jet fired on an Iraq radar site. But with the Venezuelan oil strike postponed and no further tensions in Iraq after the radar incident, oil dealers were once again focusing on the glut in the world oil supply and doubts about OPEC's commitments to follow through on promised production cuts. Light sweet crude oil for delivery in August fell 58 cents to settle at $13.92 per barrel. Unleaded gasoline fell .55 cent to 48.10 cents a gallon, and home heating oil fell 1.37 cents to 38.01 cents. Natural gas prices fell, with the August contract slipping 7.4 cents to $2.365 per 1,000 cubic feet. In London, North Sea Brent Blend crude oil settled at $12.95 per barrel, down 60 cents, at the International Petroleum Exchange. ACCESS ACCESS Prices Off Amid Alleged Iran Overproduction LOS ANGELES, July 6 - U.S. energy futures pricescontinued dropping in the after-hours ACCESS session Monday, as oil markets were hit by fears of overproduction. ''(Prices) came off on light volume at the open,'' an ACCESS trader said. ''Then some Wall Street firms wanted to sell and ACCESS followed the close, which ended weakly,'' he added. Luis Giusti, president of Venezuela's state oil company, earlier accused key OPEC producer Iran of producing 230,000 barrels-per-day (bpd) above the level it agreed to in March. ''They're pumping out a lot more than people expected and the technicals don't look good,'' the trader said. A late round of speculative selling weighed down the ACCESS oil market, traders said. August crude oil fell 12 cents a barrel to $13.80 a barrel on volume of 879 lots, traders said at 1700 PDT. By 1700 PDT on ACCESS, August unleaded gasoline fell 0.30 cent a gallon to 47.80 cents a gallon. Volume for unleaded gasoline reached a moderate 220 lots for all months and 147 for August. Earlier, front-month crude ended NYMEX trade by sliding 58 cents a barrel to $13.92 a barrel. Oil prices were undermined by Venezuela's accusations that Iran has busted OPEC quotas set in March. August heating oil fell 0.01 cent a gallon to 38.00 cents by 1700 PDT on ACCESS. Total volume was 402 lots traded, while 243 lots traded in August. On the NYMEX, August unleaded gasoline settled down 0.55 cent a gallon to 48.10, while heating oil dropped 1.37 cent to 38.01 cents. NYMEX NATURAL GAS NYMEX Natural Gas Ends Down, Longs Bail On Milder Temps: NEW YORK, July 6 - NYMEX Hub natgas futures ended lower Monday in a quiet, post-holiday session, pressured by moderate forecasts this week and some technical selling when prices failed to get above unchanged, industry sources said. August skidded 7.4 cents to close at $2.365 per million British thermal units after trading today between $2.34 and $2.43. September settled 7.5 cents lower at $2.392. Other deferreds ended down 1.6 to 6.9 cents. "People who didn't want to be short (Thursday) over the weekend because of the storm (in the Caribbean), came in today and liquidated when August couldn't get through unchanged. And the weather is not very supportive this week," said one East Coast trader, adding a tropical wave in the Caribbean could cool the Southeast a bit this week. Despite some heat across the South this week, traders agreed concerns about storage and forecasts for mostly seasonal weather in northern tier states could keep the complex on the defensive near-term. Forecasts this week call for mostly moderate weather in the Northeast, Mid-Atlantic and Midwest, with temperatures running from normal to several degrees F above. Readings in Florida and the Southeast should average two to eight degrees F above normal, while in Texas, the mercury will remain four to 10 degrees above for the period. The Southwest will vary on either side of normal. Early injection estimates for Wednesday's weekly AGA storage report range from 90-100 bcf. For the same week last year, stocks gained 96 bcf. Overall inventories are 452 bcf, or 29 percent, over year-ago levels. Technical traders agreed the market was still range bound. Major August support was still expected at the June 25 low of $2.32, with further buying likely in the low-$2.20s, the 50 percent retracement of the recent climb to $2.52. Resistance was now pegged at last week's high of $2.52, with next resistance seen at the $2.655 double top from April. In the cash Monday, Gulf Coast swing quotes held relatively steady in the low-to-mid $2.30s. Midwest pipes also were little changed in the mid-to-high $2.20s. Chicago city gate gas was flat in the high-$2.30s, while New York firmed several cents to the high-$2.50s to $2.60 area. In the West, El Paso Permian firmed more than a nickel to the low-to-mid $2.20s. The NYMEX 12-month Henry Hub strip slipped 4.2 cents to $2.461. NYMEX said an estimated 32,810 Hub contracts traded today, up slightly from Thursday's revised tally of 32,649. NORTH AMERICAN SPOT GAS United States U.S. Gas Prices Little Changed Despite NYMEX Slump NEW YORK, July 6 - U.S. spot natural gas prices were on either side of unchanged Monday as the market was seesawed by continued heat in the South and a softening trend on NYMEX, industry sources said. Forecasts are calling for normal to slightly above-normal temperatures across the Northeast and upper Midwest this week, while temperatures in Texas are expected to run about three to 10 degrees above normal through Thursday, according to Weather Services Corp. Swing Henry Hub cash traded at $2.35-2.40 per mmBtu, with the lower-priced deals surfacing in late trade as the August contract on NYMEX slipped to a low of $2.34. In the Midcontinent, swing prices were steady to down about one cent at $2.23-2.27, with Chicago city-gate business reported done in the high-$2.30s. ''There's some heat moving in. I think that offset the downward move on NYMEX,'' one Midwest trader said, referring to the fairly steady prices in the Midcontinent. In West Texas, conversely, Permian Basin prices rose about six cents to the low-to-mid $2.20s as temperatures were forecast to hit the high-90s to about 100 degrees F throughout Texas over the next few days. San Juan prices were also up at $1.90-1.98. El Paso Natural Gas Co.'s scheduled maintenance outage at its White Rock station is expected to reduce San Juan Basin capacity by 160 million cubic feet per day (mmcfd) through July 25. In the Northeast, New York city gate quotes climbed into the high-$2.50s to low-$2.60s as forecasters called for warmer weather in the region by midweek. Canada Canadian Gas Prices Soften With More Supply, NYMEX NEW YORK, July 6 - Canadian spot natural gas prices stumbled lower Monday as supplies in Alberta climbed to near NOVA's target linepack and NYMEX began to falter. Spot gas at the AECO storage hub in Alberta was quoted at C$1.89-1.945 per gigajoule (GJ). On average, prices were off four cents from Friday. August AECO business was pegged again at C$1.87 per GJ, while prices for the remainder of July were talked around C$1.90. The August-October market was quoted at C$1.91. Linepack on NOVA's system reached 12.769 billion cubic feet per day (bcfd) last night, just shy of NOVA's target at 12.8 bcfd. Additional supply of about 180 million cubic feet per day (mmcfd) is expected to return to the market by week's end following planned maintenance outages, a Calgary based trader said, which will likely lead to more softening. However, storage injections are continuing at a steady pace in Alberta, with a total 957 mmcfd pumped into storage on Sunday. At the borders, gas at Sumas, Wash., was talked steady at US$1.43-1.45 per million British thermal units (mmBtu), while Niagara pricing followed NYMEX lower to as low as US$2.31 after earlier trades at US$2.40. COMMENTARY Energy Commentary For July 7, 1998 By John Moore Energy prices fell late in the session on Monday on rumors the API data will show a large build in both crude and products. Additionally, Venezuela accused Iran of producing 230,000 bpd above the level it agreed to in March. For today, expect prices to continue lower and test the $13.00 level. Traders can consider getting long in the low $13.00 range with stops at $12.90. Good luck!

To: Kerm Yerman who wrote (11623)	7/7/1998 12:40:00 PM
From: Kerm Yerman	Read Replies (2) \| Respond to of 15196

MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING MONDAY, JULY 06, 1998 (5) TOP STORIES Oil Exploration Spending Rise Seen Smaller In 1998 Capital spending by oil and gas companies on exploration and production is set to rise 6.2 percent globally, according to Salomon Smith Barney, down from a projected 11 percent growth survey at the end of 1997. The mid-year study showed that international exploration and production spending would rise nearly 14 percent, thet the U.S. would be flat this year and that Canadian spending would drop by nearly 12 percent. ''The 1999 outlook is unusually uncertain, but 50 percent of respondents plan increases,'' analyst Geoff Kieburtz said in a report. Shakeout In Intermediates Kindles Juniors' Hopes The Financial Post The dwindling ranks of intermediate Canadian energy firms probably mean more competition for survivors and increased investor interest in juniors, observers say. The latest, but probably not the last, intermediate to lose its independence was Pinnacle Resources Ltd. Bidder Renaissance Energy Ltd. said yesterday it won about 95% of the common shares in its share exchange takeover offer, announced June 8. It offered 0.66 of a share for each Pinnacle share and about 38.7 million shares were tendered. One analyst, who asked not to be named, picked Barrington Petroleum Ltd. and Crestar Energy Inc. as other strong takeover candidates in the sector. Pinnacle joins a growing list of mid-sized companies taken over by larger U.S. or Canadian competitors in the past year. They include Archer Resources Ltd., CS Resources Ltd., Dorset Exploration Ltd., Elan Energy Inc., Stampeder Exploration Ltd. and Tarragon Oil & Gas Ltd. Canadian firms, such as Renaissance, hope management and operating synergies will allow them to raise oil and natural gas production while cutting costs. U.S. companies are taking advantage of a strong US$ to increase access to Canadian gas, which is expected to rise in value as new pipelines are built. Some of the targets, such as CS and Stampeder, had heavy oil developments that were in hot demand last year when crude prices were strong. Others, such as Elan, were known for their technology knowledge. This exploration and production expertise made them attractive targets. Company names change, but the need to develop technology that cuts costs and boosts efficiency will not be altered by the increased U.S. presence north of the border, said Verne Johnson. The former president and chief executive of Elan, who now heads consultancy Ziff Energy Group in Calgary, said new owners' asset rationalizations and sales by cash-strapped rivals suffering from low oil prices are setting the stage for a resurgence of mid-sized players. "This recent evolution -- the change of ownership and turnover of companies -- it's just going to set up a wave of juniors who will be the intermediates in two or three years." The resources large U.S. players bring to Canada may increase competition for property and skilled staff, and put more pressure on surviving intermediates, said John Ferguson, vice-president and chief financial officer of Poco Petroleums Ltd. The company is hiring several people with doctorates to develop exploration ideas and technology over the next few years. He said Poco is attracting a following from U.S. analysts. It's difficult to tell whether this is a result of less competition or recognition of Poco's focus on gas. George Fink, chairman of the Small Explorers & Producers Association of Canada, said investor interest will probably trickle down and benefit his members. "If those intermediates disappear, [investors] generally go to a smaller one and hope it grows and reaches that size rather than going to a major." Analyst Peter Linder, with CIBC Wood Gundy Securities Inc., picked Bonavista Petroleum Ltd., Genesis Exploration Ltd. and Probe Exploration Inc. as juniors with potential to evolve into intermediates. Catch-22 Time In The Gas Patch Globe & Mail It's a funny thing about the so-called oil patch these days -- you'd be hard pressed to find any oil companies in it. Dozens of companies took part in the recent Canadian Association of Petroleum Producers (CAPP) conference, but not one of them appeared to be an oil company. They were all natural gas companies, or claimed to be on their way to becoming gas companies. Even producers that eight or nine months ago were crowing about the fact that they were heavy oil companies have become natural gas companies. Perhaps Baytex Energy chief executive officer Dale Schwed said it best at the CAPP conference when he said his company "is not a heavy oil company, as we have been accused of being -- we have the potential to become a heavy oil company." This was a heroic attempt to distract the stock market's attention away from the fact that Baytex paid $267-million for heavy oil producer Dorset Exploration last September, just as the price of crude oil -- and the corresponding price of heavy oil -- was tanking. So where is Baytex focusing its energies now? Why natural gas, of course. The fact that companies are desperately trying to twist, manoeuvre and otherwise transform themselves into natural gas companies is hardly surprising. No one in their right mind wants to say they're focusing on oil, since the price hasn't budged from the $14.50 (U.S.) level despite OPEC's efforts. But moving to natural gas isn't as easy as just saying you're a gas company. FirstEnergy Capital analyst Martin Molyneaux explained why last week during a discussion of his firm's comprehensive survey of the industry's "finding and development" costs. Those are all the costs that go into producing a barrel of oil or the equivalent amount of natural gas (the current standard is that 10,000 cubic feet of gas is equal to one barrel of crude oil). The current environment has companies caught in a Catch-22 squeeze, Mr. Molyneaux said. The price of natural gas is rising, largely because of the prospect of increased pipeline capacity to the United States, where prices are higher, and everyone wants to increase their gas production as quickly as possible. But moving from oil to natural gas production can't be done overnight. Much of the natural gas that remains to be discovered in the Western Canadian sedimentary basin is located in the southwestern Foothills area of Alberta and across the border into British Columbia, analysts say. And most of those natural gas "pools" are extremely deep formations -- meaning they require specialized drilling rigs that can dig deeper than the traditional oil well. These double-and triple-height rigs are far more expensive than traditional drilling rigs, and are likely to become even more so as demand for them increases, Mr. Molyneaux added. Partly because of these kinds of costs, and partly because deep natural gas deposits are more risky, companies are likely to see costs increase as they try to move into gas. That's where the squeeze comes in. The whole reason companies are moving to natural gas is because there just isn't the cash flow available from oil to make it economically attractive -- and yet that same lack of cash flow is going to make it harder for companies to undertake the kind of expensive exploration and production that a lot of natural gas requires. "The golden goose is gas, and everyone is in the starting gate ready to go after it," Mr. Molyneaux said. "But they've got an 80-pound anvil tied to their right ankle, and that's a sub-$15 oil price." Companies that are already oriented toward natural gas are looking like geniuses at the moment, of course -- companies such as Rio Alto Exploration , Alberta Energy , anadian 88 Energy , Newport Petroleum and Encal Energy . Those whose primary focus is oil include Pacalta Resources (whose exploration is based in Ecuador), Canadian Occidental and Renaissance Energy . A company such as Pacalta, mind you, is rescued by the fact that its costs are much lower than other companies -- about $1.61 (Canadian) a barrel of crude, compared with an industry average in 1997 of $6.77. Companies such as Cabre Exploration and Numac Energy, however, have a harder time because they are more leveraged to oil but have relatively high costs, about $10 a barrel. Some of the larger companies, such as CanOxy, Imperial Oil and Ranger Oil, have the kind of balance sheet stability and breadth of operations that makes it easier to withstand a sustained downturn in oil prices, Mr. Molyneaux said. But some of the medium-sized and smaller companies -- especially those whose debt is on the high side -- are likely getting nervous. "With 11 years in the business, I've never seen producers sweat like they are now," the FirstEnergy analyst said. "There's a lot of guys lying there staring at the ceiling, and thinking about selling or finding a partner." Medium-sized companies will be hardest hit, he said. "The big guys have the wherewithal to get by, and the smaller guys are more flexible." Foreign Oil Experts Here Edmonton Sun Foreign oilmen and government managers are on a six-week tour of Alberta to learn about Canadian technology and regulatory systems. The Canadian Institute for Petroleum Industry Development (CIPID) is hosting 48 senior managers, specialists and government officials from 14 countries. "Many of them are interested in privatizing," said Karen Foster, spokesman for CIPID. "They look at Alberta as model of private oil industry. They look at our regulatory system as a model." Countries represented for the annual summer program include: Algeria, Argentina, Bangladesh, China, Colombia, Cuba, Egypt, Ethiopia, Hungary, India, Niger, Pakistan, Peru and Thailand. The participants, who have been in Edmonton for a week and will remain here two more before moving on to Calgary, are in some cases also seeking joint ventures with Canadian businesses. The program includes seminars by Alberta industry experts and meetings with government officials like Pat Nelson, minister of Alberta Economic Development and Tourism. Enerchem International Boosts Profit By 87% Edmonton Sun Nisku-based oil and gas chemical and equipment rental company Enerchem International Inc. has posted record profits for its third quarter. After-tax earnings increased 87% to $1,594,120 from $851,608 for the same period last year, said Larry Phillips, Enerchem president and CEO. For the period ended May 31, Enerchem reported revenues were $12,742,099 versus $8,935,842 in the same time last year, a 43% increase. The profits will be funnelled into the company's expansion plans, said Phillips. "We're doing some major expansions both in Nisku and outlying distribution centres," said Phillips. "Also, we're doing some additional expansion in Midland, Texas." Phillips chuckled over the company's success in the face of some adverse conditions. "Considering the long spring breakup and extended road bans, plus the fires that happened up north, plus what happened to the oil prices, we're doing very well," he said. Phillips said word is getting out about Enerchem's top staff and product line, and that's keeping them busy. The company has hired three new staff in its specialty chemicals group in the past 45 days, he said. "We'll be looking at additional staff," said Phillips. "Our market share is growing." The specialty chemicals group formulates, manufactures and markets more than 200 kinds of chemicals used by oil and gas companies in various phases of their operations. The company also has a wholly owned subsidiary, Enerchem International Corp., which services the Permian oil basin region in Texas. Enerchem's other wholly owned subsidiary, Decarson Rentals Inc., rents a wide variety of oilfield equipment to oil and gas exploration companies. Decarson also operates out of Nisku. Hibernia Suspends Tests Of Evacuation System Hibernia has halted testing of one of its evacuation systems following the second accident in nine months involving the gondola-style escape option. Company officials made the decision Monday after an empty gondola hit the offshore oil platform's receiving terminal Sunday and slid down the control cable and into the water. No one was injured in the incident, which is under investigation. But Hibernia has also decided to conduct a separate study of the entire $11-million Gemevac system to see if it is reliable enough for the company's overall safety plan. "We are obviously concerned that we've had this incident," said Dave Fitzpatrick, the head of Hibernia's safety team. "Since we have had two incidents with Gemevac, as a prudent operator it beholds us to do a thorough review." Newfoundland Energy Minister Chuck Furey has also ordered an independent review. Gemevac, manufactured by the British company GEC Alsthon Engineering Systems Ltd., uses gondolas to transport people through the air - much like a cable car - from the platform to a nearby support vessel during emergencies. Testing was temporarily suspended last October when one of the gondolas, capable of carrying 16 people, fell seven metres to the platform deck. No one was injured. Early indications suggest that the more recent incident may have been caused by "a control problem" from the support vessel, said Fitzpatrick. Representatives of GEC Alsthon were to arrive in St. John's Tuesday to help with the investigation. The platform has other options available in an emergency, including lifeboats, a flexible pole that can drop the lifeboats, a life-raft escape chute and helicopters. Hibernia officials say those options go well beyond the regulations set by the Canada-Newfoundland Offshore Petroleum Board. However, the board's chairman said he is still concerned about the status of Gemevac because it is included in Hibernia's required safety plan filed with the petroleum board. "If it can be proven reliable and effective, then yes we prefer to have it out there because it has the potential to enhance safety on the platform," said Hal Stanley. Gemevac is a prototype in the offshore industry that many believe has greater potential for use in future projects. Its uniqueness prevented it from being adequately tested until the Hibernia platform was set up on the Grand Banks. As a result, the system is still awaiting final approval from Lloyd's Register of Shipping, an international certifying authority.

To: Kerm Yerman who wrote (11623)	7/8/1998 7:41:00 AM
From: Kerm Yerman	Read Replies (4) \| Respond to of 15196

MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING TUESDAY JULY 07, 1998 (1) MARKET OVERVIEW Toronto stocks had posted a modest advance by Tuesday's close, spurred by big gains in the key gold sector, which was boosted by firmer bullion prices. In New York, stocks ended mixed Tuesday while the dollar fell against the yen on speculation Japan could unveil permanent income tax cuts before parliamentary elections Sunday. Oil prices fell, bonds edged lower and gold rose. Asian stock markets closed mixed Tuesday, with share prices rising in Tokyo on hopes that the Japanese government would announce permanent tax cuts after the country's parliamentary elections on Sunday. Shares in Europe scraped marginally higher in light trade Tuesday, but the rally appeared fragile amid continued uncertainty over Japan's efforts to pull itself out of recession. CANADA Gold Stocks Extend Bay Street's Winning Streak ''It was a pretty quiet day in general, but we saw strength in the golds, which propelled the market here,'' said Todd Kapala, investment specialist at Priority Brokerage. ''There's a bounce in the bullion. We seem to have the makings of a summer rally,'' CentrePost Mutual Funds president Rick Hutcheon said. ''The S&P is up in new highs and the Dow is close to the all time high. The TSE has a way to go but we've got the resource sector dragging us back so we'll see.'' ''I think that overall the market seems to be quite content with where it is. We're making slow progress. Is this the summer rally? It may well be,'' said Fred Ketchen, senior vice-president and director of equity trading for ScotiaMcLeod Inc. The Toronto Stock Exchange 300 composite index climbed 20.13 points, or 0.3%, to 7454.6 -- its fourth consecutive gain. About 117.6 million shares changed hands on the TSE, a spike of activity after several days of light trading. Trading was up from 64.5 million shares traded on Monday. Trading value was worth $2.3 billion. Advances outnumbered declines 515 to 475 with 320 unchanged. The TSE 35 rose 0.2%, TSE 100 rose 1.0% and the TSE 200 gained 0.5%. "It looks like everyone who wasn't on vacation decided they'd better come to work," said Fred Ketchen, senior vice-president at ScotiaMcLeod in Toronto. "They couldn't go and play golf because it was raining." ''Golds and cables were the hot ones,'' an equities trader said. Of the 14 sub-indexes comprising the TSE 300, 9 sub-indexes advanced with gold and precious minerals index posting the day's strongest performance with a 2.7% gain. The gold sector makes up nearly five percent of the TSE 300 index.Following were real estate, up 0.9%, communications and media stocks, up 0.8%, consumer products, up 0.7%, merchandising, up 0.6% and financial services 0.5% Gold producers rallied as the spot price of the yellow metal gained $1.60 to close at $295.00 US on the New York Mercantile Exchange. Barrick Gold Corp. (ABX/TSE) climbed 80› to $28.10 and Placer Dome Inc. (PDG/TSE) gained 80› to $17.25. Franco-Nevada Mining (FN/TSE) gained $0.35 to $31.10; Euro-Nevada (EN/TSE) ended at $20.40, up 15 cents. Kinross Gold (K/TSE) rose $0.25 to $4.85; Falconbridge (FL/TSE) fell $0.30 to $16.50. Shaw Communications Inc. class B shares (SCLB/TSE) jumped 40› to $33.15, after earlier hitting a record intraday high of $36, and Rogers Communications Inc. class B shares (RCIB/TSE) rose 15› to $13.40. There has been persistent speculation that cable companies may be poised for a series of takeovers and mergers. "People believe that companies like Shaw and Rogers are potential takeover targets after the AT&T Corp. acquisition of Tele-Communications Inc. last month," said Norman Duncan of C.M. Oliver & Co. Shaw also benefitted from being listed on the New York Stock Exchange last week, according to Bob Bek, an analyst at CIBC Wood Gundy Securities Inc. Other cable-related companies that advanced included Rogers Communications Inc. class A shares (RCIA/TSE), up 80› to $14, Cogeco Inc. (CGO/TSE), up 85› to $18.10, and Cogeco Cable Inc. (CCA/TSE), up 40› to $17.40. Le Groupe Vid‚otron Lt‚e. (VDO/TSE) also rose 55› to $22.30. ''Anything to do with media and communications seems to be striking a love note with a lot of investors these days in this country. And I think based on the comparative valuations of Canadian companies with the U.S., ours are much much cheaper,'' ScotiaMcLeod Inc. Senior Vice-President Fred Ketchen said. "There is a little bit of speculative appeal to them." Torstar (TS.B/TSE) led media stocks higher with a gain of $1.35 to $24.75, while Thomson Corp. (TOC/TSE) slipped $0.15 to $45.00. Cinar Films B (CIF.B/TSE) climbed $1.25 to $33.50. Bank of Montreal (BMO/TSE) rose 50› to $82.75, Canadian Imperial Bank of Commerce (CM/TSE) gained 50› to $49.35 and Royal Bank of Canada (RY/TSE) climbed 25› to $90.60. Among active issues, Hyal Pharmaceutical Corp. (HPC/TSE) was the second-most active (following TCPL) in Toronto, rising 65› to $2.73 on volume of 4.9 million shares, on speculation the company is about to announce a major marketing deal. The company again denied that a merger deal or licensing agreement was close at hand. Call-Net Enterprises (CN.B/TSE) shares rose C$0.85 to C$26.25 in heavy trading after the company's Sprint Canada subsidiary launched a flat-rate long-distance pricing program for evenings and weekends. Traders saw the move as a strategy to wrest market share from competitors. Alcan Aluminium Ltd. (AL/TSE) rose 50› to $40.70 after the world's largest aluminum producer, U.S. based Aluminum Co. of America, reported better than expected results, raising similar hopes for Alcan. Alcoa shares (AA/NYSE) rose 5/8 to US$65 5/8 after the firm reported quarterly earnings of US$1.24 a share, US10› better than estimates. Five index groups were lower. The pipelines sector posted the biggest loss - 1.54 per cent - owing in large measure to TransCanada PipeLines, which fell $0.75 to $25.95. Investors in TransCanada, which is merging with the gas transmission division of Nova Corp., are reacting to short-term growing pains as the two companies consummate the deal, Ketchen said. Abitibi fell 65 cents Tuesday to $19.40 and helped push the paper and forest products group 0.8% lower. Investors reacted negatively to news that a $1.5-billion US joint venture deal between Abitibi-Consolidated and two of its international counterparts had prompted bond raters Standard and Poor's to revise their outlook on Abitibi to stable from positive. Industrial products lost 0.4%. Troubled high-tech giant Newbridge Networks plunged $1.25 to $37.00 after three board members resigned in the wake of a dismal fiscal year. The Oil & Gas Composite Index lost 0.3% or 19.73 to 6134.74. Among the sub-components, the integrated oil's fell 0.3% or 23.50 to 8534.33. The oil & gas producers lost 0.3% or 14.34 to 5453.09 and the oil & gas services fell 1.0% or 23.46 to 2356.96. Northstar Energy, Crestar Energy, renaissance Energy, Petro-Canada, Probe Exploration, Abacan Resources and TriGas Exploration were among the top 50 most active issues on the TSE. Also listed were service related issues Canadian Fracmaster and Prudential Steel. Canadian Natural Resources gained $0.80 to $25.85, Pacalta Resources $0.65 to $9.60 and Suncor Energy $0.65 to $51.25. Service issues were not represented among the top 50 net gainers on the TSE. On the downside, Seven Seas Petroleum (u) fell $1.40 to $18.60, Paramount Resources $0.75 to $13.00, Crestar Energy $0.55 to $16.65 and Petro-Canada $0.55 to $23.65. Among service related issues, Dreco Energy Services fell $4.00 to $39.00 American ECO $2.25 to $5.40, CE Franklin $0.55 to $6.25, Akita Drilling $0.50 to $10.25, Enertec Resource Services $0.0.50 to $8.50 and IPSCO $0.50 to $39.00. Although the transportation group closed slightly to the downside, it was helped by Canadian National Railway Co. (CNR/TSE) shares, which climbed C$0.80 to C$78.80 on bargain-hunting. ''The stock had been under a lot of pressure recently partly because of profit-taking and you can look for a cutback in their freight deliveries because of the General Motors strike. The longer that goes on, the more difficult it's going to be for them,'' ScotiaMcLeod Inc. Senior Vice-President Fred Ketchen said. ''I think CNR is really a screaming buy in around this range.'' Among other issues, Devtek Corp. (DEK.A/TSE) class A shares lost 0.45 to hit 4.50 after the company's earnings outlook for 1998 and 1999 was downgraded by Nesbitt Burns analyst Peter Sklar. Other Canadian exchanges were mixed. The Montreal Exchange portfolio rose 13.72 points, or 0.4%, to 3784.92. The Vancouver Stock Exchange lost 5.51 points, or 1%, to 527.99. The Alberta Stock Exchange's combined value index fell 1.37 to 2109.06. Declining issues edged advancing issues 133 to 129, with another 88 issues unchanged. Among oil and gas related issues, Alta Pacific Capital, Total Energy Services, Anvil Resources, Granger Energy B, Veteran Resources, Green River Petroleum, ICE Drilling, Wenzel Downhole, Stellarton Energy, First Star Energy and Raptor Capital were among the top 25 most active traded issues on the ASE. Granger Energy C gained $1.49 to $4.00, Granger Energy B $0.18 to $0.55, Brigadier Energy $0.15 to $0.60, Derrick Energy $0.15 to $2.25 and Wenzel Downhole $0.13 to $1.58. Underbalanced Drilling fell $0.50 to $1.50, Total Energy Services $0.34 to $1.76, Solid Resources $0.30 to $6.90, Edge Energy $0.20 to $3.80, Red Sea Oil $0.20 to $1.60, AltaQuest Energy $0.15 to $2.50, Corlac Oilfield $0.15 to $0.75, Alma Oil & Gas A $0.10 to $0.40, Golden Trend Petroleum $0.10 to $0.50 and Mera Petroleum $0.10 to $0.60. The Canadian dollar ended North American trade little changed at C$1.4721 (US$0.6793) on Tuesday, failing to take advantage of the U.S. unit's weakness against the yen. Canada gave up some earlier gains spurred by the U.S. dollar's fall versus the yen after Japanese ruling party politicians in election campaign statements suggested that voters could expect a structural, not stop-gap, income tax cut after the July 12 Upper House elections. U.S. Treasury Secretary Robert Rubin urged Tokyo to implement a strong fiscal stimulus to boost the economy. In early morning trade, option-related buying took the U.S. dollar up to C$1.4739 (US$0.6785), but this was followed by quick profit-taking in the wake of the Japanese tax statements. Buying of Canada was limited to C$1.4692 (US$0.6806). Japan's academics and policymakers have been debating a broader-based approach to taxation, aimed at encouraging middle- and high-income earners to boost spending by lowering the top income tax brackets. But this must be matched by higher indirect taxation in the form of an increased rate for the consumption tax, a move that is politically risky for any ruling party. Japanese newspapers forecast that Prime Minister Hashimoto is unlikely to maintain a majority in the Upper House after Sunday's election as the public grows skeptical about his handling of the nation's financial problems. Although the Lower House has the final say on key decisions, critics speculate that a defeat in the poll could lead to Hashimoto's resignation. On the domestic front, Canada will release its June jobs data on Friday, but impact on the market is seen as being limited. Economists on average forecast the jobless rate at 8.4 percent, unchanged from May. Employment is expected to increase by 26,000 after falling by 7,300 in May, which came in contrast to a sharp gain in April. In cross trading, the Canadian unit edged up to 1.2318 marks from 1.2290 marks at the previous close here, but slipped to 94.16 yen from 95.08 yen. Canadian bonds ended flat to firmer on Tuesday as speculative buying sent the yield on the long bond to a record low. Defying a drop in prices for most U.S. treasuries, market participants bought Canada's 30-year bond, pushing up the price to C$137.43, up C$0.58 from Monday's close here. As bond yields and prices move in opposite directions, this pushed the yield down to 5.421 percent. Canada outperformed the U.S. 30-year bond, which fell 11/32 to yield 5.60 percent. The spread between the two widened to 18 basis points from 12 points at the previous close here. The short end of the Canadian yield curve ended flat as the Canadian dollar was trading in a stable fashion. No economic indicator or news emerged as a trigger for sustained buying of Canadian bonds on Tuesday afternoon. Instead, there was speculation that the buying was related to the new Millennium Fund set up in the 1998 budget by the government of Canada, said Jeoff Hall, managing Canadian market analyst at Technical Data in Boston. "The most of the buying today has come in the 10-year area, but that strength has spilled into longs," he said. Speculation has it that Ottawa's plans for the Millennium scholarship fund for higher education are leading to it setting up a large bond portfolio for the fund. "I would say 10's (10-year bonds) are the preferred instrument right now because people are moving away from long bonds at the moment," Hall said. "Even though they're well bid today, it doesn't look like it's going to last." Jeffrey Cheah, financial market analyst at Standard & Poor's MMS, said he expected Canada's benchmark 30-year bond to make a correction to around C$136.60 as players take profits for the next few days after today's rally. North American bonds have been see-sawing on news from Japan for the last few days as hopes for structural tax cuts, not one-off tax breaks, emerged on Friday, then subsided by Monday, and re-emerged overnight. Election campaign remarks by Japan's ruling party politicians suggesting that the current government would institute permanent tax cuts pushed up the yen against the U.S. dollar overnight, which in turn exerted slight selling pressure on U.S. treasuries. A temporary loss of support from safe-haven buying of U.S.-dollar assets prompted trimming some of Monday's gains in Canadian long bonds in morning trade. "The Canadian market appears to be outperforming just slightly. I don't think there's any undamental reason for that," said Arve Bendiksrud, vice president of fixed-income research at TD Securities Inc. "This morning the turnaround in sentiment mildly hit the U.S. market, and the hit is more pronounced in the U.S. than in Canada." Japan's academics and policymakers have been debating a broader-based approach to taxation, aimed at encouraging middle- and high-income earners to boost spending by lowering the top income tax brackets. But this must be matched by higher indirect taxation in the form of a higher rate for the consumption tax, which is bad news for low-income earners and politically risky for any ruling party. Japanese newspapers forecast that Prime Minister Hashimoto may not maintain a majority in the Upper House after Sunday's election as the public grows skeptical about his handling of the nation's financial problems. Although the Lower House has the final say in key decision-making, critics speculate that a defeat in the poll could lead to Hashimoto's resignation. Money market trading was little changed in slow trading. "There's some perception that the Asian thing is not so bad, but that comes and goes," said one trader. "People are still spending money into the short-term area." "The central bank's policy hasn't changed particularly," he said. "Activity is minimal, relatively speaking." The Bank of Canada's treasury bill auction on Tuesday produced yields lower than in the previous auction two weeks ago. The average yield for three-month bills (C$3.3 billion) was 4.800 percent, down from 4.882 percent at the last auction. The average for the six month (C$1.5 billion) was 4.934 percent, down from 5.069 percent, and the one-year (C$1.4 billion) got 5.161 percent, down from 5.243 percent. Canada's three-month when issued T-bill traded with a yield of 4.82 percent, compared with 4.81 percent at the previous close here.