Canadian Stocks Continue To Slide

Canadian Stocks Continue To Slide

Wednesday, January 5, 2005, 10:15 AM EST (Thomson Financial Corporate Group): Toronto stocks are maintaining a weak stance, building on yesterday's substantial losses. Material and mining shares are again tumbling, as concerns regarding China's waning demand mount. Technology stocks are rebounding on some upbeat reports from both sides of the border. Meanwhile, the IPPI and RMPI readings disappointed economists.

* The S&P/Toronto Stock Exchange Composite Index is falling 20.72 points,
or 0.23%.

* Yesterday, the S&P/Toronto Stock Exchange Composite Index tumbled
103.59 points, or 1.12%.

* Investors are rotating out of material, mining, financial, healthcare
and cyclical stocks, and into technology, gold and telecom issues.

* On the economic front, the Industrial Product Price Index dropped 1.7%
to 108.5 in November from a downwardly revised October reading of
110.4. Economists were looking for a smaller 1.1% decline in November.
Separately, the Raw Materials Price Index plunged 5.3% in November to
131.9, compared with a revised 4.1% advance to 139.3 in October. A 2.5%
dip was expected. A drop in crude oil prices contributed to November's
tumble.

* In U.S. reports, the ISM services index rose to 63.1 in December,
compared with a reading of 61.3 in November.

* The resource sectors took a major hit yesterday, partly due to concerns
China's demand for base metals will slow this year. This morning, gold
shares are rebounding slightly, despite continued greenback strength.
Yesterday's strong factory orders reading and speculation that this
week's U.S. monthly employment report could be strong are helping to
fuel U.S. dollar strength. Separately, oil prices are moving lower this
morning ahead of U.S. weekly inventory data, due out at 10:30 AM EDT.

* In corporate resource reports, last night, Alcan said that its board
gave final approval for the spinoff of Novelis into an independent,
publicly traded firm, set for January 6.

* Technology stocks are witnessing a mild rebound this morning, following
steep declines on both sides of the border yesterday. Nortel Networks
is providing multimedia solutions to Shaw Cablesystems. Financial terms
of the deal were not disclosed. Also, U.S.-based Earthlink and Research
In Motion announced the availability of an enhanced HTML wireless
browser for the BlackBerry 7750. Research In Motion is jumping this
morning.

* Within the U.S. tech space, LSI Logic raised its fourth-quarter
earnings and revenue outlook. Also, Siebel Systems reported preliminary
fourth-quarter profits and revenue that surpassed expectations, adding
that it is comfortable with analysts' first-quarter estimates.

* Turning to deal reports, Home Depot Canada is set to buy Litemor
Distributors, Canada's largest national commercial lighting
distributor. Terms of the deal were not disclosed.

-- 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. 5


Source: Thomson Financial Corporate Group

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


-------
Profile: intent