Tuesday, May 23, 2006, 4:15 PM EST (Thomson Financial Corporate
Services): Shares ended slightly lower today, as strength in gold and
energy shares were unable to overcome declines in the financial, technology
and healthcare sectors. Meanwhile, the Organization for Economic
Co-operation and Development recommended a rate hike when the Bank of
Canada convenes tomorrow.
* The S&P/TSX Stock Exchange Composite Index slipped 5.84 points, or
0.05%.
* On the economic front, the Organization for Economic Cooperation and
Development suggested the Bank of Canada continue to raise interest rates a
day before the central bank's next meeting, when it is expected to hike its
key lending rate to a near five-year high from 4% to 4.25%. The bank has
raised rates seven times in a row to keep the economy from operating much
closer to capacity. "In the context of rising inflationary pressures and
buoyant economic growth, the Bank of Canada should continue with its
tightening cycle," the report said.
* In M&A headlines, Northgate Minerals Corp. said it will make a
stock-swap offer for Aurizon Mines Ltd. that values the gold miner at C$435
million. Aurizon ended higher on the news, while Northgate shares were
down.
* In commodities, oil futures rose as scientists' predictions that the
next Atlantic hurricane season will be an active one stoked fears about
supply disruptions at U.S. Gulf of Mexico refineries. They added that this
year's hurricane season would most likely be tamer than the 2005 season.
Light, sweet crude for July delivery rose near the US$72-a-barrel level on
the New York Mercantile Exchange.
* In the U.S., Toll Brothers Inc. posted better-than-expected
first-quarter earnings, but the homebuilder said higher costs would reduce
2006 profit to less than previously forecast. In other news, after a
three-year investigation, Federal regulators levied a fine against mortgage
lender Fannie Mae for alleged accounting misstatements that could range
between US$300- US$500 million.
* London-based Associated British Ports Holding PLC said that it is
studying a 2.4-billion pound takeover bid from a consortium that includes
the Ontario Municipal Employees Retirement Fund. The company, which owns 21
ports in the country, rejected a 2.2-billion pound offer from the group in
March, and is now giving the Goldman Sachs Group Inc.-led consortium, which
includes Borealis Infrastructure Management Inc., a unit of the OMERS, and
Singapore- based GIC Special Investments, an opportunity to examine its
books following a revised offer of 810 pence per share. AB Ports said its
statement to the exchange was made without the consortium's consent and a
deal was not guaranteed.
-- Michael.O'Brien@contractor.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
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.
SOURCE Thomson Financial Corporate Group
back to top
