Canadian Issues Move Higher In Early Trading

Canadian Issues Move Higher In Early Trading

Monday, January 10, 2005, 10:15 AM EST (Thomson Financial Corporate Group): Bay Street is moving higher this morning, after the key Toronto index suffered steep declines last week. Investors are preparing for the onslaught of financial reports, with Alcoa kicking off earnings season's unofficial start after the close. This morning, gold and energy issues are solidly higher, supported by a weakening greenback and higher oil prices, respectively. Meanwhile, building permits surged in November. South of the border, deal reports and tech research are in focus.

* The S&P/Toronto Stock Exchange Composite Index is advancing 22.30
points, or 0.25%.

* Last Friday, the S&P/Toronto Stock Exchange Composite Index gave up
58.04 points, or 0.64%.

* Gold shares are bounding higher this morning, supported by a weaker U.S.
dollar versus the euro. Turning to research, Raymond James cut Bema Gold's
price target to C$3.40 from C$4.00.

* Meanwhile, higher oil prices are aiding the energy sector. Poor weather
conditions are impeding plans to return to full production from the North
Sea.

* Nortel Networks is active this morning, as analysts await the release of
its audited 2003 results, due out after the close of trading. Nortel said
the filings will be publicly available early Tuesday.

* Amid U.S. chip research, Deutsche Bank cut its revenue forecasts for the
semiconductor sector, due to pricing concerns. "While industry inventory
appears to have been worked down in the fourth quarter, pricing for
commodity products is deteriorating," the broker said. Deutsche added that
it expects recent calls for public companies to start expensing stock
options to most negatively impact stocks like Nvidia, Xilinx and Altera,
among others. Also, UBS upgraded Advanced Micro Devices to "neutral" from
"reduce," saying it believes AMD is now priced at "fair valuation."

* In other tech research, Credit Suisse First Boston upgraded Nokia,
citing a more aggressive share repurchase program and a more optimistic
outlook for the handset market and Nokia's ability to regain market share
in 2005 and 2006.

* Elsewhere, Hillsborough Resources signed a Letter of Intent to acquire
substantial coal interests in Northeast British Columbia through the
acquisition of a portfolio of coking, PCI and thermal coal properties.
That stock is jumping higher in response.

* Deal reports are also dominating U.S. headlines this morning. Alltel
said it agreed to acquire Western Wireless for US$6 billion of stock and
cash in a deal that will create the nation's fifth-largest wireless
carrier and give Alltel an additional 1.4 million wireless customers.
Meanwhile, News Corp. said it is offering 1.9 of its A-class shares for
each of the remaining shares in Fox Entertainment Group it does not
already own, representing a 7.4% premium to Fox's Friday closing price.
Separately, Movie Gallery agreed to purchase Hollywood Entertainment for
US$850 million in cash, plus debt.

* In economic headlines, building permits leapt 9.3% in November to a
seasonally adjusted C$5 billion from C$4.58 billion in October. Economists
expected an increase of just 0.8% in November. South of the border,
wholesale inventories jumped 1.1% to a seasonally adjusted US$326.76
billion in November, while sales advanced 0.7% to US$283.67 billion.

-- 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 -- Jan. 10


Source: Thomson Financial Corporate Group

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


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