Friday, May 19, 2006, 4:15 PM EST (Thomson Financial Corporate
Services): Canadian stocks reversed course and rose Friday afternoon,
ending the session in the black after seven straight days of losses.
* The S&P/TSX composite index added 5.82 points to 11,545.77.
* On the economic data front, March retail sales jumped 1.5% to a
record, more than double forecasts and capping the strongest quarterly gain
in four years, Statistics Canada reported. Trade reached C$32.1 billion in
March, with car sales accounting for the bulk of the increase. March's
gains were the strongest in eight months. Unemployment at a 31-year low and
a brisk real estate market had Canadian consumers spending early in the
year.
* Lower oil prices and declining U.S. bond yields boosted overall
market sentiment, as did a sharp recovery of the U.S. dollar against the
Japanese yen.
* In corporate news, CanWest Global Communications Corp. is divesting
itself of its remaining share of Ireland's TV3 network for 265 million
euros (C$381 million). CanWest Granada Media Holdings Ltd. will be sold to
a private equity fund managed by Doughty Hanson & Co. The unit is 45% owned
by Can West Global, 45% by ITC PLC subsidiary Granada Media Group Ltd. and
10% by TV3's three Irish founders.
* Moody's Investors Service cut its debt ratings for BCE Inc. and its
Bell Canada unit, citing the telephone company's plan to use proceeds from
asset restructurings to buy back stock. The rating on BCE's senior
unsecured debt was lowered to Baa2 from Baa1, while the rating on Bell's
senior unsecured debt slipped to Baa1 from A3. Moody's said the move
affects about C$10 billion in debt securities.
* After upping its share in Intrawest Corp. to 16%, a U.S. hedge fund
says it would give the resort operator time to weigh its strategic options
as it attempts to boost shareholder value. "We would think that six to nine
months is adequate time for them to come up with a conclusion," said
Stephanie Tran, a spokeswoman for Connecticut-based Pirate Capital LLC.
* Canadian markets will be closed Monday for the Victoria Day holiday.
-- Michael.O'Brien@Thomson.contractor.com
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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