Malcolm Morrison The Canadian Press
The Toronto stock market was little changed Monday afternoon, held back by falling commodity stocks as the U.S. dollar gained strength amid persistent worries about the ability of Greece to repay its debt.
“It’s a big issue for sure,” said Steve Uzielli, portfolio manager-director ScotiaMcLeod equity advisory. “Until there is resolution on this issue, it will continue to be one of many shadows over the market.”
The S&P/TSX composite index was four-tenths of a point higher to 11,948.3 in a volatile session that saw the market come back from a 104-point deficit as losses in the energy and mining sectors moderated. The TSX Venture Exchange was 10.41 points lower at 1,553.65.
The Greek debt crisis continued to attract investor attention after Germany’s chancellor said yesterday that a bailout for Greece won’t be discussed at a European summit this week.
Greece is running unsustainably high deficits and needs support from other European countries so it can borrow money at lower interest rates. And the government has said if it doesn’t get that support from Europe, it might turn to the International Monetary Fund for help.
Investors are worried about the effect on the global economic recovery if Greece and some other European countries that use the euro _ such as Spain and Portugal _ falter in their struggle to pay down their heavy debt.
The Canadian dollar lost ground as the U.S. dollar attracted nervous traders and gained strength against a number of currencies. The loonie was down 0.27 of a US cent to 98.12 cents US.
“The U.S. has its own issues (but) when compared to the European situation, and the uncertainty there, all of a sudden the U.S. dollar looks like a safe haven in relative terms,” said Uzielli.
Commodity prices were also volatile as the April crude contract on the New York Mercantile Exchange rose 27 cents to US$80.95 a barrel after falling as low as US$78.57 because of a stronger greenback. But the energy sector was still the leading decliner on the TSX, down 0.66 per cent and Canadian Natural Resources (TSX:CNQ) shed 82 cents to C$72.41.
The tepid performance in the energy sector came amid a report from the Conference Board of Canada predicting profits in the natural gas sector will increase in 2010. It added that higher prices will offset lower production. Nexen Inc. (TSX:NXY) moved down 23 cents to $24.18.
The base metals sector was down 0.47 per cent as May copper also recovered early losses and was unchanged at US$3.38 a pound. Sherritt International (TSX:S) fell 25 cents to C$8.45 and First Quantum Minerals (TSX:FM) fell $1.83 to C$87.45.
The gold sector faded 0.55 per cent with the April gold contract on the New York Mercantile Exchange down $7.60 to US$1,100 an ounce. Goldcorp Inc. (TSX:G) was off 42 cents at C$39.03.
The financials sector was weak, down 0.2 per cent with selling focused on insurers. Manulife Financial (TSX:MFC) was down 28 cents at $19.86.
The telecom sector was up 0.53 per cent with the Canadian Radio-television and Telecommunications Commission set to rule Monday on the so-called TV tax or fee for carriage. Cable companies say such a fee could add $10 a month to consumers’ bills if the regulator rules they have to pay broadcasters for their local signals. The decision is expected after the market close. Telus Corp. was the big gainer, up 58 cents at $37.06 while Rogers Communications (TSX:RCI.B) ticked 12 cents higher to $35.49.
Further weighing on investor sentiment Monday was the move by India’s central bank on Friday to raise interest rates. The quarter-point hike, intended to cool high inflation, unnerved investors who were concerned that growth and asset prices could sink once governments start winding down their stimulus measures.
The move by the Indian government to curb the economy comes at a time when the Chinese government has also made moves to slow down a hot economy, raising the reserve levels of banks.
“If those are the global economic growth engines and there are efforts being made to curb that growth, that obviously has implications for the global economy and producers of commodities for that global economy and that brings you back to Canada as well,” Uzielli said.
The picture was more positive in New York, where markets are not nearly as commodity-heavy as the TSX.
The Dow Jones industrial average was up 51.1 points to 10,793.1.
The Nasdaq composite index edged up 17.98 points to 2,392.39 while the S&P 500 index added 5.2 points to 1,165.1.
The health-care sector was one of the leading advancers on the NYSE following the passage of a sweeping package of U.S. health-care legislation over the weekend which will create near-universal medical coverage and extend benefits to 32 million currently uninsured Americans.
Pfizer gained 33 cents to US$17.24 while Merck improved 66 cents to US$38.72.
Traders focused on health stocks because the bill passed by the House will extend benefits to 32 million uninsured Americans. That means increased business for insurers and drug makers. Many of the key points of the bill will not go into effect for several years.
The TSX healthcare segment was also a major advancer, up 2.14 per cent with MDS Inc. (TSX:MDS) ahead nine cents to $8.49.
The founder of Biovail Corp (TSX:BVF), Eugene Melnyk, has sold “substantially all” of his holdings in the Toronto-area pharmaceutical company.
According to a regulatory filing with the U.S. Securities and Exchange Commission, Melnyk has sold about 9.6 million Biovail shares since Nov. 24. At that time, the stock stood at $14.99. On Monday, Biovail shares were up 25 cents at $16.36. Melnyk left Biovail several years ago and has been often at odds with its management and board of directors about Biovail’s strategy.
In other corporate news, Enbridge Inc. (TSX:ENB) said Monday that it plans to build a natural gas liquids pipeline from the Marcellus shale formation in the eastern United States to the Chicago area. Its shares climbed 17 cents to $48.65.
Osisko Mining Corp. (TSX:OSK) plans to acquire Hammond Reef gold project in Ontario through a takeover of Brett Resources Inc. of Vancouver (TSXV:BBR) in an all-stock deal valued at $372 million. Osisko stock was down 24 cents at $8.35.
The Greek debt crisis continued to attract investor attention after Germany’s chancellor said yesterday that a bailout for Greece won’t be discussed at a European summit this week.
Greece is running unsustainably high deficits and needs support from other European countries so it can borrow money at lower interest rates. And the government has said if it doesn’t get that support from Europe, it might turn to the International Monetary Fund for help.
Investors are worried about the effect on the global economic recovery if Greece and some other European countries that use the euro _ such as Spain and Portugal _ falter in their struggle to pay down their heavy debt.
The Canadian dollar lost ground as the U.S. dollar attracted nervous traders and gained strength against a number of currencies. The loonie was down 0.27 of a US cent to 98.12 cents US.
“The U.S. has its own issues (but) when compared to the European situation, and the uncertainty there, all of a sudden the U.S. dollar looks like a safe haven in relative terms,” said Uzielli.
Commodity prices were also volatile as the April crude contract on the New York Mercantile Exchange rose 27 cents to US$80.95 a barrel after falling as low as US$78.57 because of a stronger greenback. But the energy sector was still the leading decliner on the TSX, down 0.66 per cent and Canadian Natural Resources (TSX:CNQ) shed 82 cents to C$72.41.
The tepid performance in the energy sector came amid a report from the Conference Board of Canada predicting profits in the natural gas sector will increase in 2010. It added that higher prices will offset lower production. Nexen Inc. (TSX:NXY) moved down 23 cents to $24.18.
The base metals sector was down 0.47 per cent as May copper also recovered early losses and was unchanged at US$3.38 a pound. Sherritt International (TSX:S) fell 25 cents to C$8.45 and First Quantum Minerals (TSX:FM) fell $1.83 to C$87.45.
The gold sector faded 0.55 per cent with the April gold contract on the New York Mercantile Exchange down $7.60 to US$1,100 an ounce. Goldcorp Inc. (TSX:G) was off 42 cents at C$39.03.
The financials sector was weak, down 0.2 per cent with selling focused on insurers. Manulife Financial (TSX:MFC) was down 28 cents at $19.86.
The telecom sector was up 0.53 per cent with the Canadian Radio-television and Telecommunications Commission set to rule Monday on the so-called TV tax or fee for carriage. Cable companies say such a fee could add $10 a month to consumers’ bills if the regulator rules they have to pay broadcasters for their local signals. The decision is expected after the market close. Telus Corp. was the big gainer, up 58 cents at $37.06 while Rogers Communications (TSX:RCI.B) ticked 12 cents higher to $35.49.
Further weighing on investor sentiment Monday was the move by India’s central bank on Friday to raise interest rates. The quarter-point hike, intended to cool high inflation, unnerved investors who were concerned that growth and asset prices could sink once governments start winding down their stimulus measures.
The move by the Indian government to curb the economy comes at a time when the Chinese government has also made moves to slow down a hot economy, raising the reserve levels of banks.
“If those are the global economic growth engines and there are efforts being made to curb that growth, that obviously has implications for the global economy and producers of commodities for that global economy and that brings you back to Canada as well,” Uzielli said.
The picture was more positive in New York, where markets are not nearly as commodity-heavy as the TSX.
The Dow Jones industrial average was up 51.1 points to 10,793.1.
The Nasdaq composite index edged up 17.98 points to 2,392.39 while the S&P 500 index added 5.2 points to 1,165.1.
The health-care sector was one of the leading advancers on the NYSE following the passage of a sweeping package of U.S. health-care legislation over the weekend which will create near-universal medical coverage and extend benefits to 32 million currently uninsured Americans.
Pfizer gained 33 cents to US$17.24 while Merck improved 66 cents to US$38.72.
Traders focused on health stocks because the bill passed by the House will extend benefits to 32 million uninsured Americans. That means increased business for insurers and drug makers. Many of the key points of the bill will not go into effect for several years.
The TSX healthcare segment was also a major advancer, up 2.14 per cent with MDS Inc. (TSX:MDS) ahead nine cents to $8.49.
The founder of Biovail Corp (TSX:BVF), Eugene Melnyk, has sold “substantially all” of his holdings in the Toronto-area pharmaceutical company.
According to a regulatory filing with the U.S. Securities and Exchange Commission, Melnyk has sold about 9.6 million Biovail shares since Nov. 24. At that time, the stock stood at $14.99. On Monday, Biovail shares were up 25 cents at $16.36. Melnyk left Biovail several years ago and has been often at odds with its management and board of directors about Biovail’s strategy.
In other corporate news, Enbridge Inc. (TSX:ENB) said Monday that it plans to build a natural gas liquids pipeline from the Marcellus shale formation in the eastern United States to the Chicago area. Its shares climbed 17 cents to $48.65.
Osisko Mining Corp. (TSX:OSK) plans to acquire Hammond Reef gold project in Ontario through a takeover of Brett Resources Inc. of Vancouver (TSXV:BBR) in an all-stock deal valued at $372 million. Osisko stock was down 24 cents at $8.35.
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