Friday, May 26, 2006, 4:15 PM ET (Thomson Financial Corporate Services
Group): Canadian stocks rose on commodity-related and technology shares and
a higher- than-expected profit at Royal Bank of Canada. In the U.S., stocks
climbed as the latest report on personal spending showed a rise that was in
line with expectations.
* The S&P/TSX Stock Exchange Composite Index rose 109.75 points, or
0.94%.
* In Canadian corporate headlines, Royal Bank of Canada reported a
stronger- than-expected 23.7% rise in second-quarter profit as its wealth
management division benefited from the boom in market-related activity. The
firm's net income from continuing operations rose to C$0.86 a share from
C$0.70 a share a year ago. Meanwhile, the mean Thomson First Call estimate
was for C$0.82 a share.
* Canadian business software maker Hummingbird Ltd. has agreed to a
US$465 million takeover by California-based Symphony Technology Group.
Hummingbird's board unanimously supported the all-cash offer, and the
company's shares finished higher on the development.
* Talisman Energy Inc. is selling its Expro subsidiary and North Sea
oil and gas assets to Endeavour Energy UK Ltd. for US$414 million.
Talisman's shares rose on the development.
* Meanwhile, Northgate Minerals powered higher, as the firm's diamond
drilling at its Young-Davidson property in Ontario continues to intersect
substantial gold mineralization.
* In health care, medical device maker VSM MedTech Inc. is reducing its
workforce by about a third, and withdrawing a preliminary short-form
prospectus filed April 10 for a proposed public equity offering. The
company said the public offering would not have provided the company with
the longer- term stability it required as it develops its medical imaging
technology market.
* On the U.S. economic front, personal incomes rose 0.5% in April. Core
inflation rose 0.2% in April as expected after a 0.3% gain in March. It
rose 2.1% in the past 12 months, the fastest gain since March 2005. Core
inflation is now running slightly above the Federal Reserve's informal
"comfort zone" of 1% to 2%. Also, U.S. consumer sentiment strengthened
slightly in late May, according to media reports of proprietary research
from the University of Michigan. The consumer sentiment index inched higher
to 79.1 in the final May index, in-line with expectations.
* Oil edged higher as traders worried by the approach of the U.S.
summer driving and Atlantic hurricane seasons sold contracts ahead of a
long weekend in the United States. Light, sweet crude for July delivery on
the New York Mercantile Exchange rose US$0.05 to US$71.37 a barrel.
-- 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
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SOURCE Thomson Financial Corporate Group
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