Tag: Krystle

TSX little changed amid rising commodities concerns about US rally

TORONTO — The Toronto stock market was flat Tuesday afternoon amid concerns about whether a U.S. stock rally may be running out of steam and indications of slower than anticipated economic growth prospects.The S&P/TSX composite index ticked 2.52 points higher to 13,460.58 as the Canadian dollar fell 0.39 of a cent to 95.47 cents US.The Organization for Economic Co-operation and Development cut its 2014 forecast for global growth from 4% to 3.6%. The OECD cited U.S. fiscal uncertainty, the impact of the Federal Reserve tapering its asset purchases and weakness in emerging markets.U.S. markets were lower after indexes backed off Monday after hitting key technical levels, raising questions about whether American markets are due for their first serious retracement in two years.The Dow Jones industrials declined 19.66 points to 15,956.36, the Nasdaq fell 22.41 points to 3,926.65 and the S&P 500 index slipped 5.5 points to 1,786.03.Investors remained cautious a day after the Dow broke 16,000 and the S&P breached the 1,800 mark — both for the first time. The Dow alone has surged more than 20% this year and is up about 900 points since early October amid optimism that the Federal Reserve won’t be moving to cut back on its monthly US$85 billion of bond purchases until well into the new year.“You always have to be cautious when the market has gone up as fast as it has,” said Ian Nakamoto, director of research at 3MACS.“(But) any correction that could happen I would use it to buy the dips because valuations are still reasonable.”The TSX is up about 8.5% for the year so far, dragged down by the mining sector. Most other sectors have put in a solid performance, particularly financials, energy companies and industrials — companies Nakamoto thinks will likely take the TSX higher.“Much more of the direction of the TSX is going to be the financial and energy components because we have had such a correction in the mining sectors,” he observed.Commodity prices advanced and the energy sector was the strongest group, up 0.35% as December crude on the Nymex inched up 27 cents to US$93.30 a barrel. Bankers Petroleum (TSX:BNK) ran up 13 cents to C$3.86.Niko Resources (TSX:NKO) surged 26.39% to $1.82, recovering for a second day after plunging more than 50% Friday after it said that it had secured a “very high cost,” $340-million loan to avoid defaulting on debt payments and other obligations.The gold sector was up 0.25% while December bullion climbed $1.20 to US$1,273.50 an ounce. The sector has been a major drag this year, plunging about 45% as global inflation remains very low while economic conditions are gradually improving, making bullion less attractive as a hedge. Kinross Gold (TSX:K) advanced five cents to C$5.16.Financials were also positive as Manulife Financial (TSX:MFC) gained 20 cents to $20.06.The consumer sector was in focus Tuesday as Sears Canada Inc. (TSX:SCC) stock jumped $1.18 or 7.02% to $17.98 as the retailer said that it will pay its shareholders an extraordinary dividend of $5 per share. Sears also posted a quarterly net loss of $48.8 million or 48 cents per share, mainly due to severance and restructuring costs.Food company George Weston (TSX:WN) posted earnings ex-items of $1.38 a share, seven cents shy of estimates. Its shares declined 34 cents to $81.11 as the company also said overall sales rose 2.1% to $10.38 billion.The base metals sector led decliners, down 0.44% as December copper edged up one cent to US$3.16 a pound. First Quantum Minerals (TSX:FM) fell 30 cents to C$18.55.In other corporate news, Patheon Inc. (TSX:PTI) has received a friendly takeover offer that values the drug company at about US$1.4 billion, which is more than 50% above its recent market price. The offer of US$9.32 per share cash is coming from a group backed by Patheon’s largest shareholder, U.S. private equity firm JLL Partners. Patheon shares surged $3.72 or 62.6% to C$9.66.In the U.S., Home Depot Inc. reported net income of US$1.35 billion, or 95 cents per share, up from $947 million, or 63 cents per share, a year ago. Analysts expected earnings of 89 cents per share. Revenue rose 7% to $19.47 billion from $18.13 billion. Wall Street predicted $19.18 billion. Its shares gained 87 cents to $80.54.Traders are looking to the release Wednesday of the minutes from the latest Fed meeting held late last month for hints about when the central bank might start cutting back on its asset purchases, which have kept bond yields low and encouraged people to buy equities. read more

DR of Congo UN military observer killed in landmine accident

According to the UN Organization Mission in the DRC (MONUC), the incident occurred Saturday morning when the two observers drove over a mine at Komanda, 60 kilometres southwest of Bunia. The injured observer was evacuated to Kisangani for treatment.An investigation is under way with a view to establishing the circumstances surrounding the accident, the second of its kind since the deployment of MONUC observers in the DRC in November 1999.Meanwhile, in what MONUC hailed as an important step forward in the peace process, the official Congolese Rally for Democracy-Goma (RCD-G) delegation to the Commission de Suivi arrived in Kinshasa yesterday – their first visit to the capital since the conflict broke out in 1998.The official visit marks the end of nearly two weeks of intense negotiations in both Kinshasa and Goma led by MONUC chief Amos Namanga Ngongi. UN observers escorted the RCD-G leaders, who are expected to discuss the implementation of a power-sharing deal with government representatives, political parties and other rebel groups.In early April, all sides gave final approval to the creation of a new constitution and comprehensive multi-party administration, which will lead to the holding of elections after a two-year transition period. UN Secretary-General Kofi Annan has hailed the agreement as offering the “best chance” for the Congolese people to restore peace after nearly five years of civil war. read more