BRIEF EYE ON THE MARKETS / Focus On North America
Canada
Markets Stage Comeback
TORONTO -- North American stock markets beat back profit-takers and
surged higher Thursday despite a renewed bout of pessimism about the
future of planned bank mergers in Canada.
The TSE 300 composite index gained 47.26 points after an 80-point
deficit to close at 6,413.02. In New York, the Dow Jones industrial
average also strengthened in the afternoon to close 132.33 higher at
8,915.47, its highestlevel in three months.
Analysts cited a speech Thursday by U.S. Federal Reserve Chairman Alan
Greenspan, the man credited with triggering a three-week rally in
stocks with a quarter-point interest rate cut Oct. 15.
Greenspan said "investor fright" appeared to be diminishing, a
sentiment that has been borne out by three weeks of impressive gains
on both sides of the border. Both the Dow and the TSE 300 are 20 per
cent above their lows of September and October.
He also said the Asian crisis had exposed the vulnerability countries
face when they try to link their currency to another, stronger
currency such as the U.S. dollar without pursuing sound economic
fundamentals such as controlling budget and trade deficits.
"I don't think Greenspan said a whole lot, but what he did say wasn't
particularly negative, and people have taken that to be somewhat
positive," said Fred Ketchen, senior vice-president at Scotia Capital
Markets in Toronto.
"The cyclical side of our market is catching some fascinating action."
In Toronto, gold stocks surged as the yellow metal notched a gain of
$3.10 to $294 US on the New York Mercantile Exchange, taking with it
the fortunes of the TSE's gold and silver sub-group.
The group posted a gain of 5.70 per cent to lead 11 of 14 sub-groups
higher, followed by mines and minerals, up 3.91 per cent.
Barrick Gold Corp. gained $1.60 to $35.05, while Placer Dome Inc. was
up $1.60 to $26.75. Both companies traded more than three million
shares. Franco-Nevada Mining gained $1.50 to $32.00.
Analysts credited gold's strength to Greenspan's suggestion that the
world's currencies were stronger when they were linked to the precious
metal rather than the U.S. dollar.
Merchandising stocks were also strong Thursday with a 1.98 per cent
gain.
The financial services sub-group was hit hard, losing 0.91 per cent as
investors reacted to a report released Wednesday by federal Liberals
that recommended Ottawa not allow four of the country's largest banks
to merge with each other.
Bank of Montreal, which plans to merge with the Royal Bank, shed $2.45
to fall to $62.00. Royal lost $1.15 to $70.60. Only Bank of Nova
Scotia -- which doesn't have merger plans -- escaped, gaining 35 cents
to $32.25.
The Industrial products sub-group slipped 0.09 per cent, while
communications and media stocks followed with a loss of 0.06 per cent.
In New York, the Dow Jones industrial average erased a 68-point loss
to post its best close since July 28 and about 400 points from the
record 9,337.97 set 11 days earlier on July 17.
Broader stock measures also recovered from a halfhearted bout of
profit-taking.
The Dow has now rebounded nearly 1,500 points since it slid below
7,500 less than a month ago on Oct. 8. The blue-chip barometer has
gone seven straight sessions without a loss, gaining 55 points, and
hasn't suffered a 100-point drop in more than a month.
But Greenspan, who last month warned about fear gripping the world's
financial markets, offered no clear signal on whether the central bank
will cut interest rates again at the next policy meeting on Nov. 17.
In Toronto, advancers outnumbered decliners 572 to 412 with 310
unchanged in trading of 128 million shares worth $2.1 billion.
The TSE 100 rose 2.67 points to 392.68.
Among industrials, Fairfax Financial Holdings Ltd. rose $18 to $480,
Provigo 50 cents to $15.10; Northern Telecom fell $1.85 to $66.85,
Mitel Corp. 40 cents to $10.25.
Among mines, Dia Met Class A lost $0.55 to $20.70.
Among oils, Berkley Petroleum slipped 40 cents to $11.50, Chieftain
International Inc. 60 cents to $29.90; Abacan Resources climbed 24
cents to 66 cents, Renaissance Energy Ltd. $1.20 to $21.90.
Toronto stocks reverse direction to rally by close
TORONTO, Nov 5 - Investors abandoned profit-taking in Toronto's stock
market on Thursday in favor of an afternoon rally, encouraged by U.S.
gains and hopes that financial crises in several parts of the world
may be on the mend.
The Toronto Stocks Exchange's closely watched 300 Composite Index
turned around from morning weakness to extend this week's rally. It
rose 47.17 points or 0.74 percent to close at 6412.92 points.
But Toronto could not keep up with New York's wildfire rally. After
early weakness, the Dow Jones Industrial Average raced 132.33 points
or 1.51 percent higher to finish at 8915.47.
Wall Street posted its strongest gain in three weeks, helped by
economic data that heightened expectations of an interest rate cut.
The U.S. Labor Department's monthly jobs report, unveiled a day
earlier than planned because of information inadvertently published on
a government Internet site, showed the U.S. economy added an
unexpectedly low 116,000 nonfarm jobs in October.
Also, U.S. Federal Reserve Chairman Alan Greenspan said on Thursday
that he saw some signs that the scare ignited by financial crises in
Asia and Russia was dissipating.
Fred Ketchen, ScotiaMcLeod's director of equity trading, said Canadian
investors were taking recent attempts to deal with global problems to
heart. "It is a growing comfort that maybe the world's troubled spots
aren't being as troubled as they used to be, and that they're dealing
with these problems in an efficient and timely manner."
Another factor in Toronto was a blistering rally in gold stocks, which
benefited from firmness in the underlying bullion prices. Over the
last two days, the gold and precious metals group rose more than 10
percent.
"The golds have taken off here again," Ketchen added. The key December
bullion price in New York's Comex market rose US$3 to US$294.80 an ounce.
Golds led 11 of Toronto's 14 subindexes higher, rising 5.7 percent,
followed by base metals, retail and consumer products.
The decliners were banks, industrial products and media.
Among hot stocks, takeover target and grocer Provigo Inc. rose C$0.50
to C$15.10.
Miner Barrick Gold Corp. was up C$1.60 to C$35.05.
Shares in AlphaNet Telecom Inc. lost half their value, plummeting
C$3.89 or nearly 52 percent to C$3.61. Investors took a dim view of
the long distance service provider's capital woes and third-quarter
loss.
C$ closes softer as US$ firms
TORONTO, Nov 5 - The Canadian dollar gave back overnight gains to
close at C$1.5235 ($0.6564) on Thursday after the U.S. dollar fought
back against a mistaken morning release of U.S. employment numbers.
Weaker-than-expected U.S. monthly jobs data -- which landed on the
Internet a day ahead of schedule -- weakened the U.S. currency in the
afternoon. U.S. payroll employment grew by 116,000 in October while
the jobless rate was unchanged at 4.6 percent.
The numbers were taken by many as a further sign the Fed would cut
rates, but Fed chief Alan Greenspan dashed the hopes when he gave no
hint about lower interest rates at a speech in Florida.
Traders said Canada's dollar is caught in a C$1.5200 ($0.6579) to
C$1.5300 ($0.6536) range after failing to break its C$1.5180
($0.6588) downside.
"The target was C$1.5180 ($0.6588), which we missed by only a few
points, but we didn't make a clean break of it, so the C$1.5250
($0.6557) bounce is normal," a foreign-exchange trader in Montreal
said.
"We look to be still in the C$1.5200 ($0.6579) to C$1.5300 ($0.6536)
range, but we're still vulnerable to declarations from politicians,"
the trader added, referring to a Quebec provincial election campaign
that culminates with a November 30 vote.
After a flurry of interest rate cuts from Europe, including Thursday's
larger-than-expected 0.5 percent shaving from the Bank of England, all
eyes are back on the U.S. Federal Reserve.
Greenspan made no direct reference to the outlook for the world or
U.S. economies and gave no hints on credit loosening when speaking by
videoconference to a Florida meeting of the Securities Industry
Association on Thursday.
Analysts interpreted Greenspan's lack of interest-rate talk as a sign
the Fed might not cut rates at its November 17 meeting, which buoyed
the U.S. dollar.
The Bank of Canada, which followed the Fed in September and October
with lower rates, is expected to follow again if the Fed does move on
or before November 17.
Canada will release its employment report on Friday morning. A
Reuters' survey of economists forecasts an unchanged 8.3 percent
October unemployment rate.
"I think the employment numbers will be looked upon as a nonevent,"
the Montreal trader said.
"Of course if there's a big improvement it will be positive for the
(Canadian) dollar, but we're not expecting it," he added.
A Quebec provincial election continues to weigh on the Canadian
dollar, but the currency has yet to be hit by any news from the
campaign trail.
Fresh election polls from Quebec are expected this weekend. Recent
polls have placed the incumbent, separatist Parti Quebecois and the
opposition, federalist Liberals in a tight race.
On the crosses, Canada's dollar was firmer against the yen at 77.35
from 77.01, but weaker against the German mark at 1.0892 against
1.0903. The German Bundesbank's refusal to cut interest rates despite
the U.K's cut today bolstered the mark against major currencies.
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Toronto Stock Exchange - DAILY MARKET SUMMARY for Thursday
November 05, 1998 04:26 PM
TSE 300 COMPOSITE INDEX IS UP
PERCENTAGE CHANGE 0.74%
POINTS CHANGE 47.16
TSE 300 INDEX LEVEL 6412.92
TRADING VOLUME VALUE TRANSACTIONS
128 238 340 $2,129,081,841.00 56 556
ADVANCING ISSUES DECLINING ISSUES UNCHANGED ISSUES
572 412 310
TSE 35 INDEX IS UP
PERCENTAGE CHANGE 0.95%
POINTS CHANGE 3.34
TSE 35 INDEX LEVEL 354.45
TSE 100 INDEX IS UP
PERCENTAGE CHANGE 0.67%
TOTAL POINTS CHANGE 2.66
TSE 100 INDEX LEVEL 392.67
11 OF THE SUB-GROUP INDICES ARE HIGHER
GOLD AND SILVER IS UP 5.70% OR 390.31 TO 7238.59
ACTIVE STOCKS
PROVIGO IS UP $0.50 TO $15.10
CANADIAN IMPERIAL BANK OF COMMERCE IS DOWN $0.10 TO $31.90
LARGE PRICE CHANGES
BANK OF MONTREAL IS DOWN $2.45 TO $62.00
SEAGRAM CO IS UP $2.35 TO $54.25
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Montreal Not Available
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The Alberta Stock Exchange Closing Market Report for Thursday
November 5, 1998
CALGARY, Nov. 5 /CNW/ -
ALBERTA STOCK EXCHANGE Daily Trading Summary for: 11/05/98
Time: 14:35:20
Shares Dollar Issues
Traded Value Traded Advances Declines Unchanged
18,058,519 6,042,603.00 379 139 115 125
Net
Top Five Dollar Value Volume Close Change Trades
1,133,240.00 ORO NEVADA RESOURCES 3,771,900 .300 .020 21
483,421.00 TELEBACKUP SYSTEMS 56,883 8.400 .100 27
459,020.00 NIKO RESOURCES LTD. 76,400 5.750 .150- 47
436,500.00 JUSTINIAN EXPLORATION 4,850,000 .090 .010- 14
234,329.00 ALTA NATURAL HERBS & 250,100 .970 .070 80
Net
Top Five Volume Value Close Change Trades
4,850,000 JUSTINIAN EXPLORATION 436,500 .090 .010- 14
3,771,900 ORO NEVADA RESOURCES 1,133,240 .300 .020 21
857,900 NORTHERN ABITIBI MINI 219,828 .250 .020- 137
354,300 STORM ENERGY INC 188,129 .550 .040 67
350,000 ROYALEDGE RESOURCES 11,500 .035 5
Alberta Stock Exchange Combined Value Index: 1,755.13 Change: 16.99
(x)J-JCP Total Number of Trades: 1,948
Original Listings:
Powermax Energy Inc. - A Junior Capital Pool Company
PWR-ASE
Nov. 5/98 - The common shares of Powermax Energy Inc. were posted for
trading at the opening of business today. Powermax Energy Inc. has
successfully completed its initial public offering of 1,000,000 common shares
for total gross proceeds of $200,000. Powermax Energy Inc. has 2,100,000
shares issued and outstanding. Powermax further announced that, on October 23,
1998, it entered into two letters of intent to acquire oil and gas interests.
As Powermax is a new junior capital pool corporation, these two transactions
will constitute its Major Transaction as defined under the Alberta Securities
Commission Rule 46-501. Such transaction is subject to regulatory and
shareholder approval.
Westview Multimedia Inc. - A Junior Capital Pool Company
WHM-ASE
Nov. 5/98 - The common shares of Powermax Energy Inc. were posted for
trading at the opening of business today. Westview Multimedia Inc. has
successfully completed its initial public offering of 1,500,000 common shares
for total gross proceeds of $300,000. Westview Multimedia Inc. has 3,500,000
shares issued and outstanding. Westview has further announced that it entered
into a letter of intent executed October 30, 1998 to acquire all of the issued
and outstanding securities of MegaWheels Media Inc. (''MegaWheels''). The
transaction is not arm's length. MegaWheels is a Calgary based company with
offices in Calgary, Edmonton, Vancouver and Toronto and has been in operation
since September 1, 1996. Megawheels.com provides online Internet advertising
services to Canadian Automobile, Recreation Vehicles and Motorcycle
dealerships. The advertising service allows dealers to present all of their
current vehicles inventory to Canadian consumers online. Consumers can search
megawheels.com at any time to locate the specific vehicle they are looking
for. Consumers are also able to list their private vehicles for sale on
megawheels.com. Westview is a junior capital pool company and the acquisition
of MegaWheels by Westview is intended to constitute Westview's Major
Transaction pursuant to Rule 46-501 of the Alberta Securities Commission and
Circular No. 7 of The Alberta Stock Exchange. As such, the transaction is
subject to the approval of The Alberta Stock Exchange and Westview's minority
shareholders.
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Vancouver Stock Exchange Closing Market Report for November 5, 1998
VANCOUVER, Nov. 5 /CNW/ - Trading was moderate on a volume of 21.4
million shares worth 12.3 million dollars, with 133 advances, 89 declines and
282 issues unchanged.
The VSE Composite Indicator closed up 2.40 at 406.04
The VSE Mining Indicator closed up 3.48 at 302.08
Most Active Issues by Volume
Volume Name Symbol Close Change
2,132,500 Golden Maritime Resources Ltd. GDM 0.33 0.03
1,300,000 Multivision Communications Corp. MTV 1.00 -0.35
910,785 West African Gold Corporation WAG 0.06 0.02
831,000 Pacific Vangold Mines Ltd. PVM 0.13 -0.02
760,184 Argentina Gold Corp. ARP 2.92 -0.19
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U.S. Markets
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Sector Information - TSE 300
canoe.ca
Chart - TSE 300
canoe.quote.com
Oil & Gas Charts - TSE 300
Oil & Gas Composite
chart.canada-stockwatch.com
Integrated Oil's
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Oil & Gas Producers
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Oil & Gas Srvices
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Most Actives - All Canadian Exchanges
canoe.ca
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