Technology, Resource Issues Bolster Canadian Market

Technology, Resource Issues Bolster Canadian Market

Thursday, January 6, 2005, 10:15 AM EST (Thomson Financial Corporate Group): Toronto issues are posting a much-needed gain this morning, after falling sharply the past two sessions. The resource sectors have led the markets demise recently. However, this morning, a rising greenback and declining oil prices are unable to hinder strength in gold and energy shares, respectively. Also, the tech sector is surging, boosted by news from Nortel Networks and Open Text. South of the border, retailers' December same-store sales figures are in focus.

* The S&P/Toronto Stock Exchange Composite Index is recovering
33.48 points, or 0.37%.

* Yesterday, the S&P/Toronto Stock Exchange Composite Index plunged
103.53 points, or 1.13%.

* Nortel Networks is jumping higher, after the firm said that it will
begin filing audited financial statements for 2003 on January 10, and
its subsidiary NNL will file its 2003 audited financial statements soon
after. Nortel also expects fourth-quarter 2004 revenue of about
US$2.8 billion.

* In domestic software reports, Open Text said that according to
preliminary reports, the firm's second-quarter results could be better
than previous projections. The firm now expects record revenues of
US$110 million to US$113 million. Adjusted earnings are seen at
US$0.26 to US$0.30 a share. Subsequently, a number of brokerages
lifted the stock's price target.

* South of the border, Microsoft is reportedly planning to forge
alliances with Sony in a bid to expand in the digital entertainment
industry. The firm's CEO discussed yesterday at a conference agreements
made with Viacom's MTV Networks, TiVo and Yahoo!, among others.
Separately, National Semiconductor announced that it will cut 550 jobs
in order to streamline its manufacturing operations. As a result, the
firm anticipates fiscal third-quarter charges of about US$22 million to
US$26 million.

* Turning to deal reports from the telecom sector, Telesat Canada, which
is owned by BCE Inc., acquired U.S.-based Spaceconnection Inc. Terms of
the deal were not disclosed. Spaceconnection provides
programming-related satellite transmission services to all major U.S.
television networks and cable programmers.

* Oil prices are sliding lower this morning, following yesterday's U.S.
inventory data that showed a build-up in winter fuel supplies.
Meanwhile, gold shares are edging higher, despite continued strength
in the U.S. dollar versus the euro. Gold shares and the yellow metal
have recently fallen sharply on greenback strength.

* Within the U.S. retail group, December same-store sales figures have
been released. Wal-Mart matched its forecast of 3% sales growth,
although year-ago levels saw growth of 4.3%. Sears, Roebuck & Co.
posted a 3% decline in December same-store sales, while Starbucks'
same-store sales climbed a lesser-than-expected 8%. J.C. Penney's sales
declined by a smaller-than-expected amount. Also, Federated Department
Stores posted a 2.3% jump in December sales.

* Meanwhile, Sears Canada will buy Cantrex Group from a Canadian
subsidiary of General Electric Capital Corp. for an undisclosed amount.

-- 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. 6


Source: Thomson Financial Corporate Group

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


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