Friday, April 28, 2006, 4:15 PM ET (Thomson Financial Corporate Group):
Canadian shares ended modestly higher, finding support in resources shares,
especially gold, while U.S. counterparts mostly eased back due in part to a
disappointment from Microsoft. Mixed economic data was also in focus.
* The S&P/Toronto Stock Exchange Composite Index rose 16.48 points, or
0.14%.
* On the economic front, GDP edged up 0.2% in February, as it already
did the prior month, and in line with expectations.
* South of the border, first-quarter GDP swelled 4.8% in a preliminary
reading, versus only 1.7% in the fourth period, and close to expectations
for 5.0% growth. However, the Chicago PMI slipped to 57.2 in April from
60.4 in March, below targets of 58.5. Also, the final April reading on
consumer sentiment from the University of Michigan stood at 87.4, down from
88.9 the prior month, and missing projections for a reading of 89.0.
* Resources shares rebounded on bargain-hunting and as renewed tensions
with Iran propped up crude and gold prices. In quarterly results, Canfor
swung to a first-quarter net profit from a year-ago loss, with earnings
excluding items reaching C$0.15 a share, ahead of forecasts for C$0.08 a
share. Other paper and forest products companies also rose on talk that the
preliminary U.S.- Canada lumber accord removes some uncertainty for the
industry.
* Meanwhile, NQL Energy Services raised its first-quarter outlook due
to strong margins and revenue. Separately, Viceroy Exploration lured buyers
after an upbeat report on a drill program in Argentina. On the downside,
Western Oil Sand's loss widened to C$0.13 a share from last year's C$0.01 a
share due to unfavourable currency translations. In pipelines,
Transcanada's first-quarter profits beat estimates by a penny, totaling
C$0.46 a share excluding items.
* Elsewhere, Microsoft disappointed the Street with third-quarter
earnings of US$0.29 a share, including US$0.03 in charges, up from last
year, but below expectations of US$0.33 a share. Sales of US$10.9 billion
were also inferior to estimates of US$11.04 billion. Its guidance was also
below projections.
* In domestic techs, DataMirror's fourth-quarter earnings of US$0.09 a
share reversed a year-ago deficit of US$0.02 a share. Also, Emergis swung
to a profit of C$0.04 a share from a year-ago loss of C$0.04 a share, on
higher sales. Both stocks rose.
* Turning to healthcare, Labopharm was active after pricing an initial
public offering on the Nasdaq above the expected price. Also, Biomira
climbed after reporting "encouraging" data from a final phase 2b Stimuvax
trial for select lung cancer patients.
-Beatrice.Denis@thomson.com; Thomson Financial Corporate Services
This is Thomson Financial Corporate Services 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
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SOURCE Thomson Financial Corporate Group
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