Canadian Market Finishes Barely Changed

Canadian Market Finishes Barely Changed

Thursday, February 3, 2005, 4:15 PM EST: (Thomson Financial Corporate Group): Toronto shares were little changed, as traders hold off on making any significant moves ahead of tomorrow's employment reports from both sides of the border. Gold, technology and cyclical shares were notable decliners, while mining and staple issues solidified. News from Teck Cominco, Kinross Gold and Nortel Networks directed trading in those stocks. South of the border, Amazon.com's fourth-quarter earnings disappointed. Also, U.S. retailers' same- store sales figures and a batch of economic reports were released.

* The S&P/Toronto Stock Exchange Composite Index edged down 0.23 points,
or 0.00%.

* Within the gold group, Teck Cominco said that higher commodity prices
and increased metal production and sales led the firm to post fourth-
quarter earnings of C$1.34 a share from C$0.52 a share last year,
handily beating the mean Thomson First Call estimate of C$0.82 a share.
Revenues advanced to C$1.05 billion from C$716 million. For the year,
net income jumped to C$2.99 a share from C$0.68 a share. Teck Cominco
expects capital spending in 2005 of C$280 million. On the news, RBC and
Desjardins lifted the firm's price target. That stock leapt.

* Kinross Gold slipped, as the firm decided to obtain an independent
valuation of its goodwill as of December 31, 2003 and December 31, 2004.
The goodwill stems from its acquisition of mines in the TVX and Echo Bay
transactions. If the goodwill was impaired, the firm will restate its
financial statements for 2003. Subsequently, Salman downgraded the firm
to "hold" from "buy."

* Gold prices and the yellow metal tanked, as yesterday's boost to U.S.
interest rates strongly supported the greenback. Also, President Bush
again pledged to reduce the U.S. budget deficit in half by 2009 in last
night's State of the Union speech. Turning to research, Paradigm lifted
Iamgold's price target to C$11 from C$10. Meanwhile, oil prices settled
lower, following mixed U.S. inventory reports released yesterday and
milder weather in the Northeast U.S.

* Argo Energy and Lightning Energy agreed to merge and create Sequoia
Oil & Gas Trust and a public exploration-focused junior producer, White
Fire Energy. Also, Haywood slashed Lightning Energy's price target to
C$4.90 from C$6.00.

* Alcan slid. The firm appointed Michael Hanley executive vice-president
of Alcan, and he is joining the Office of the President. He will retain
his responsibilities as President and Chief Executive Officer, Alcan
Bauxite and Alumina, until a successor is found.

* In the technology sector, Nortel Networks said it is suing three of its
former employees, including its former chief executive, Frank Dunn. The
firm is attempting to recover approximately C$13 million in bonus money
that was paid based on inflated profits. Separately, Nortel won a three
year US$15.2 million contract from Sprint Corp. affiliate iPCS. Nortel
will replace its wireless infrastructure technology and provide other
services in Michigan.

* Sierra Wireless said that "certain alleged securities class action
lawsuits" have been filed in the U.S. District Court for the Southern
District of New York; although, it has not been served with any
complaints. Still, Sierra Wireless surged on the session. Lehman
Brothers noted that the second half of 2005 could be good for the firm,
partly due to the release of new Sierra products and a decline in PC
Card inventories.

* M&A activity continues to heat up in the U.S. The Wall Street Journal
reported that Qwest Communications is mulling a bid for MCI in reaction
to Monday's SBC-AT&T merger announcement.

* January same-store sales figures were also in focus south of the border.
Wal-Mart Stores and Starbucks' sales were weaker than expected. Sears,
Roebuck and Co. said its comparable domestic store sales rose 0.8% in
January. Also, JC Penney's sales rose a greater-than-expected 3.3%,
leading the firm to raise its fourth-quarter earnings outlook.

* On the U.S. economic front, advanced fourth-quarter productivity rose
0.8%, versus a 1.8% gain in the prior period. A 1.2% gain had been
expected. December factory orders edged up 0.3%, compared to a revised
1.4% leap in November. Finally, the January ISM services index fell to
59.2 from 63.9 in the prior reading.

-- 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 -- Feb. 3


Source: Thomson Financial Corporate Group

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


-------
Profile: intent