Friday, June 9, 2006, 4:15 PM EST (Thomson Financial Corporate
Services): Canadian stocks faltered as gains by mining and staple shares
were offset by declines in the gold and energy sectors. Healthcare issues
were also solidly in the red. Investors focused on a batch of economic news
from both sides of the border, as well as local M&A activity.
* The S&P/TSX Stock Exchange Composite Index receded 24.82 points, or
0.22%.
* On the economic front, the economy added 96,700 new jobs in May,
matching a record high, driving the unemployment rate to its lowest
level since December 1974. The rate unexpectedly tumbled to 6.1% from
6.4%, Statistics Canada reported. The numbers took economists by
surprise and sent the loonie higher. They expected the rate to hold
steady, with only 20,000 new jobs created in the month.
* Separately, the trade surplus unexpectedly fell in April to C$4.07
billion from an upwardly revised C$5.34 billion in March.
* On the U.S. economic front, the April trade deficit rose to US$63.4
billion after two months of declines on rising oil prices and an influx
of Chinese imports. The rise marked a 2.5% increase over the March
deficit of US$61.9 billion, but was sharply lower than Wall Street's
expected gap of US$65 billion.
* In M&A headlines, plastic building-products maker Royal Group
Technologies Ltd. agreed to a C$1.7 billion takeover by chemical
producer Georgia Gulf Corp. of Atlanta. The company's stock rallied when
trading resumed after a halt for the news.
* Turning to industrials, CAE Inc. has secured federal and Quebec
government financial support as it spends C$630 million over the next
six years to develop a new generation of flight simulators, the company
reported. The two governments are contributing C$220.5 million to
maintain 800 high-level engineering and computer jobs at the company's
operations in Montreal. Technology Partnerships Canada, a federal fund,
will provide C$189 million, while Investissement Quebec, a provincial
financing agency, will contribute C$31.5 million.
* In forest-products reports, Canfor Corp.'s shareholders approved a
special resolution authorizing the firm to finish the spinout of 20% of
its pulp business.
-- Michael.O'Brien@contractor.Thomson.com; Thomson Financial Corporate
Services
This is Thomson Financial Corporate Services Canadian Commentary, which
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SOURCE Thomson Financial Corporate Group
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