Resource Issues Pressure Toronto Stocks

Resource Issues Pressure Toronto Stocks

Tuesday, January 4, 2005, 10:15 AM EST (Thomson Financial Corporate Group): Canadian shares are kicking off the new year in the red, following a long holiday weekend. The main culprits this morning are gold, mining, material and energy issues. Still, Nortel Networks is boosting the technology sector. Investors also await year-end sales data from major auto makers, due out later today.

* The S&P/Toronto Stock Exchange Composite Index is slumping 62.43 points,
or 0.68%.

* Last Friday, the S&P/Toronto Stock Exchange Composite Index lost 17.75
points, or 0.19%.

* Gold shares and the precious metal are plunging this morning, as the
U.S. dollar surges against the euro. Yesterday, the yellow metal
declined to a two-month low on a stronger greenback. Oil prices are
modestly rebounding this morning, following yesterday's steep decline.
Warmer weather in the U.S. Northeast has tempered buyer enthusiasm.

* Technology stocks are amongst the few market bright spots. Yesterday,
Nortel Networks said that the New York Stock Exchange provided the firm
with an additional three months to file its 2003 annual report with the
Securities and Exchange Commission. The move will allow the firm to
continue to trade on that exchange.

* Turning to research, Smith Barney initiated coverage of Research In
Motion with a "hold" rating. The brokerage said in its research note
that although the firm's premium valuation limits sustainable upside,
near-term earnings momentum from the Fast 100 and smartphone initiatives
are also expected.

* Within the industrial group, Bombardier Transportation received an
additional order to provide 100 high-capacity trains AGC type to the
French National Railways. The deal is valued at approximately US$474
million.

* In healthcare reports, Dimethaid Research is active after that firm and
Solvay Pharma entered into an amended agreement to market and sell
arthritis medication Pennsaid in Canada. Still, Biovail is slumping,
after that firm, along with Forest Labs, were named as defendants in a
suit that alleges the firms attempted to monopolize the Tiazac drug.

* In U.S. deal reports, Rayovac purchased closely held United Industries,
a consumer products maker, for US$1.2 billion.

* On the U.S. economic front, November factory orders leapt 1.2%,
following an upwardly revised 0.9% advance in October. Orders were
expected to climb 1.0% in November.

-- 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. 4


Source: Thomson Financial Corporate Group

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