Toronto Stocks Dragged Lower By Gold, Technology Issues

Toronto Stocks Dragged Lower By Gold, Technology Issues

Thursday, January 13, 2005, 4:15 PM EST (Thomson Financial Corporate Group): Canadian stocks ultimately ended lower, despite flirting with positive territory earlier. Gold stocks finished notably lower, as the greenback rebounded from yesterday's selling pressure. Elsewhere, a major CIBC shareholder sold its stake in the bank, pressuring the heavily-weighted financial sector. Technology issues were also deep in the red. South of the border, Apple Computer's quarterly result pleased the Street, while economic data was mixed.

* The S&P/Toronto Stock Exchange Composite Index declined 13.57 points,
or 0.15%.

* Gold shares and the yellow metal tumbled, as the greenback reversed
yesterday's negativity following a record U.S. trade gap. In other
resource reports, Aurizon Mines was heavily traded, after Cambior
increased its holdings in the firm from 4.9 million common shares to
9.4 million common shares, representing 9.1% of Aurizon's issued share
capital. Also, RBC lowered Alcan's price target.

* Meanwhile, oil prices leapt, boosting energy stocks. Traders are
mindful of the impending election in Iraq, potential OPEC production
cuts and disruptions in production from the North Sea. In corporate
reports, Bulldog Energy rallied, after it sold its Rosevear natural gas
property for C$6.25 million and lifted its cash flow forecasts for this
year. The firm now expects 2005 cash flow of about C$0.50 a share, up
from 2004 estimates for C$0.35 a share. Subsequently, Research Capital
upgraded Bulldog to "buy" from "accumulate." Elsewhere, Total Energy
Services rallied, after its board said it would review the firm's
strategic alternatives, including a reorganization into a business
trust.

* The financial sector moved lower, firmly led by Canadian Imperial Bank
of Commerce. L.F. Investments, which is controlled by Li Ka-shing, sold
its entire stake, or 4.9%, in CIBC for about C$1.2 billion. The bank
acknowledged that its stock would likely be hurt by technical pressure
in the short term due to the hefty sale.

* The telecom sector posted a modest decline. Telesystem International
Wireless announced that it completed its deal to acquire all of Oskar
Holdings N.V.

* Elsewhere, Mitec Telecom leapt, after that firm received a contract to
supply products to a major Chinese OEM. The deal is valued at
approximately C$20 million and spans two years.

* Tech stocks slumped, despite a key upbeat report from the U.S. Apple
Computer surged, after it recorded a sharply higher fiscal first-
quarter profit that handily beat the mean Thomson First Call estimate.
Sales in the quarter jumped 7.4% to US$3.49 billion. In terms of
guidance, Apple projects its second-quarter results will land ahead of
analyst expectations.

* In cyclical reports, John Fairfax Holdings could be mulling the
purchase of CanWest Global Communications' stake in Ten Network
Holdings, an Australian broadcaster. CanWest would not comment on
market speculation, while Fairfax said it is assessing strategic
options, which include discussions with various industry participants.
Also, Merrill Lynch upgraded CanWest. Separately, Imax rose, after the
firm said it will install three theatres in Chongqing, China. Imax
announced a separate multi-theatre deal in China about two weeks ago.

* Transat A.T. posted fourth-quarter net income of C$0.27 a share,
reversing a year-earlier loss from continuing operations of C$0.25 a
share. Excluding restructuring charges in the latest quarter, the firm
earned C$0.54 a share, handily beating the mean analyst estimate of
C$0.25 a share.

* There were no major domestic economic releases today; however, in the
U.S., retail sales rose 1.2% in December after edging up an unrevised
0.1% in November. Sales ex-autos rose 0.3% in December. Economists had
expected overall sales to rise 1.0% and sales ex-auto to gain 0.4%.
Meanwhile, initial jobless claims rose by 10,000 to a three-month high
of 367,000 in the week that ended January 8. Economists had forecast a
drop in claims of 19,000.

-- 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. 13


Source: Thomson Financial Corporate Group

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


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