Mixed Reports Leaves Canadian Market Slightly Higher

Mixed Reports Leaves Canadian Market Slightly Higher

Wednesday, December 8, 2004, 4:15 PM EST (Thomson Financial Corporate Group): Canadian issues ended the day modestly higher, as strength in technology stocks battled gold and mining weakness. Nortel Networks and Research In Motion helped boost the tech sector on their respective reports. Meanwhile, strength in the greenback versus the euro pressured gold and mining issues. Also, an upbeat Goldman Sachs research note, which sees a 20% correction in the real estate investment trust sector in 2005, sent real estate shares higher.

* The S&P/Toronto Stock Exchange Composite Index rose 12.79 points, or
0.14%.

* Gold shares and the yellow metal came off of earlier lows, but still
finished in the red, as the U.S. dollar gained momentum against the
euro. Greenback volatility is expected ahead of next week's U.S. Fed
meeting on interest rates. Also, oil prices reversed course and turned
higher, amid a mixed bag of U.S. inventory data. The Energy Information
Administration said that U.S. distillate inventories advanced by 1.4
million barrels last week; however, American Petroleum Institute said
that distillate stocks declined by 1.2 million barrels.

* In corporate resource reports, Iamgold tumbled amid a rash of downbeat
research notes, after Gold Fields' shareholders rejected Iamgold's
proposed merger with that firm yesterday. Meanwhile, First Calgary
Petroleums announced successful production test results from MZLS-1well
in Algeria. Shell Canada leapt after announcing a "major" natural gas
discovery in central Alberta. Also, Potash rallied, after CIBC raised
its price target to US$90 from US$74.

* Nortel Networks announced that it will file 2003 and first-half 2004
results starting January 10, 2005. The firm expects to post unaudited
third-quarter results, updates to its previously announced estimated
unaudited results for the first and second quarters of 2004 and limited
estimated unaudited results for 2001, 2002 and 2003 during the week of
December 13. Nortel also revised its prior revenue growth reports to 9%
in 2001, 3% in 2002 and 5% in 2003, compared with its prior estimates
of 8% in 2001, 4% in 2002 and 5% in 2003. Also, the telecom equipment
maker expects to reduce 2003 net earnings by 28%, versus its previous
estimate of a 35% cut. Separately, Merrill Lynch raised its price
target on Research In Motion to US$108 from US$87, sending that stock
higher.

* On the earnings front, Geac Computer posted a higher second-quarter
profit of US$0.17 a share from US$0.12 a share last year. The mean
Thomson First Call estimate was for US$0.15 a share. Geac's revenue
slipped to US$106.4 million from $111.5 million, principally due to a
drop in its lower-margin hardware revenue. Subsequently, Orion
downgraded the stock, while National Bank lifted its price target.

* South of the border, IBM said it is selling its PC-making business to
China's Lenovo Group in a US$1.75 billion deal that will create the
world's third-biggest PC maker. IBM will have an 18.9% stake in Lenovo.
Also, Texas Instruments narrowed its quarterly financial targets. The
firm now sees fourth-quarter earnings of US$0.25 to US$0.27 a share on
revenue of US$3.02 billion to US$3.14 billion. Analysts are expecting a
profit of US$0.26 a share on average, according to Thomson First Call.

* Within the industrial group, Bombardier reported last night that it won
a C$26 million train order from the Greater Toronto Transit Authority.
The firm also said that it sold its interest in Greenbrier-Concarril
LLC and Gunderson Concarril SA de CV to Greenbrier Cos. Elsewhere, some
analysts slashed their fourth-quarter profit estimates for WestJet
Airlines, principally due to computer glitches that negatively impacted
its online reservations bookings.

* Turning to healthcare reports, Biomira slumped, after it announced that
it will raise US$10 million in private placement of common shares and
warrants.

* In economic reports, housing starts jumped 5.9% in November to a
seasonally adjusted annualized rate of 238,200 units from 225,000 units
in October. November's figure beat analyst expectations for an
unchanged reading.

-- Linda.Shea@thomson.com; Thomson Financial Corporate Group



This is Thomson Financial Corporate Group's Canadian Commentary, which is updated twice daily. The information herein is believed to be true and accurate, we take no responsibility for inaccurate information and reserve the right to update our reports. For more financial information at your fingertips, please visit http://www.irchannel.com/. If you have any questions please e-mail James Sang at james.sang@tfn.com or call 646.822.6233 For more information about Thomson Financial visit us on-line at http://www.thomsonfinancial.com/.

PRNewswire -- Dec. 8
http://www.irchannel.com


Source: Thomson Financial Corporate Group

Web site: http://www.thomsonfinancial.com/


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