Toronto Stocks Build On Yesterday's Gains

Toronto Stocks Build On Yesterday's Gains

Wednesday, January 26, 2005, 10:15 AM EST: (Thomson Financial Corporate Group): Bay Street is maintaining a positive stance this morning, as investors seem more enthusiastic about corporate earnings reports. Gold, technology, financial, healthcare and industrial stocks are leading the pack higher. Reports from Abitibi-Consolidated and Canadian National Railway are in focus. South of the border, some upbeat chip earnings are benefiting tech stocks.

* The S&P/Toronto Stock Exchange Composite Index is advancing 32.66
points, or 0.36%.

* Yesterday, S&P/Toronto Stock Exchange Composite Index leapt 46.90
points, or 0.52%.

* Gold shares are sharply higher this morning, as the greenback moves
south against the euro. In corporate reports, Barrick Gold Corp. said
that it reached its 2004 gold production target, producing 4.96 million
ounces at an average total cash cost of US$212 per ounce. The firm
intends to increase output to between 5.4 million and 5.5 million ounces
this year at an average total cash cost of US$220 to US$230 an ounce.
Barrick intends to increase output by 40% by 2007.

* Separately, Linear Gold Corp. is moving lower, after that firm
announced that it will sell 2.58 million stock-warrant units at C$7.75
each for gross proceeds of C$20 million.

* In material reports, Abitibi-Consolidated posted a wider fourth-quarter
loss of C$0.24 a share from C$0.18 a share a year earlier. Excluding a
writedown and other non-recurring items, the firm posted a deficit of
C$0.13 a share. Analysts expected a loss of C$0.10 a share, on average,
in a deficit range from C$0.04 to C$0.19 a share, as provided by Thomson
First Call. Sales for the quarter rose to C$1.48 billion from C$1.37
billion last year. The firm also announced a review of its operations
that will help it achieve C$175 million in cost, productivity and sales
improvements.

* Meanwhile, oil prices are slipping ahead of the weekly U.S. inventory
data, due out at 10:30 AM EST.

* U.S. chip stocks are bounding higher this morning. Texas Instruments
posted a slightly lower profit from a year ago, but still landed ahead of
the average Thomson First Call estimate. Revenue advanced 14% to US$3.15
billion. Also, Flextronics International announced sharply higher
third-quarter earnings, as sales rose 3% to US$4.28 billion.

* Elsewhere, Oracle said that it expects its fiscal 2006 earnings to jump
over 20% above 2005 levels to US$0.76 to US$0.80 a share.

* Within the industrial group, Canadian National Railway posted a 67%
jump in its fourth-quarter earnings to C$1.29 a share from C$0.78 a share
last year. The firm credited its acquisitions of Great Lakes
Transportation and British Columbia Railway and a strong North American
economy for the improved profit. The firm's most recent result also
landed well ahead of the mean Thomson First Call estimate of C$1.18 a
share. Looking ahead, Canadian National Railway is targeting 10% to 15%
earnings growth for 2005.

-- 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. 26


Source: Thomson Financial Corporate Group

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


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