Monday, June 12, 2006, 4:15 PM EST (Thomson Financial Corporate
Services): Canadian stocks fell as metal prices tumbled, dragging down
related shares. Meanwhile, crude oil prices fell by more than US $1, as the
first tropical storm of the Atlantic hurricane season is not expected to
hit the Gulf of Mexico's petroleum infrastructure.
* The S&P/TSX Stock Exchange Composite Index receded 193.12 points, or
1.70%.
* Today's losses followed five consecutive losing sessions. The move
brought the TSX down to its lowest point this year on commodity prices
readjusting due to worries that higher interest rates could reduce global
demand. Hawkish comments from U.S. Fed policymakers in recent weeks have
sent investors scurrying on fears that interest rates will be hiked again
at the June 29 Federal Open Market Committee meeting.
* In mining news, Teck Cominco Ltd. issued an analysis arguing that
Inco's current lofty share price is being propped up by Teck's hostile
offer for the nickel producer; the company made an offer for Inco last
month. The company decided to issue a formal analysis after meeting with
institutional investors in Europe last week and concluding that its message
wasn't getting through, Teck chief executive officer Don Lindsay told the
Globe and Mail. Shares of Teck fell on the development.
* Overseas, the board of steelmaker Arcelor SA board rejected a revised
offer from Mittal Steel Co., which refused to raise its bid for its rival
and characterized the value of the company's deal with Russia's OAO
Severstal as "entirely fictitious." Arcelor recommended that shareholders
approve a deal with Severstal.
* Elsewhere, Agrium Inc. cut its second-quarter profit forecast to
about US $1.00 per share, compared with earlier guidance of US $1.02 to US
$1.12 amid lower fertilizer sales. The stock declined sharply on the day.
* Meanwhile, Canadian Superior Energy Inc. believes it can outbid rival
Petro-Canada in a takeover struggle for Canada Southern Petroleum Ltd.,
which has stakes in undeveloped natural gas discoveries in the Arctic. "Our
bid has upside," Greg Noval, CEO of Canadian Superior told reporters. He
said Canadian Superior is planning to drill two offshore wells in Trinidad
and Tobago and that success there could give Canada Southern shareholders a
boost they couldn't get from Petrocan's all-cash bid.
* In commodities, oil prices fell on signs Iran was responding to a
Western incentive package aimed at curbing its nuclear program. But
analysts say uncertainty will maintain a firm floor under oil prices. The
first tropical storm of the Atlantic hurricane season, Alberto, appeared to
be steering clear of oil infrastructure in the U.S. Gulf Coast, which also
weighed on prices.
* Also of note, Kenneth Thomson, former chairman of Thomson Corp.,
passed away earlier today. Mr. Thomson was Chairman of Thomson from 1978 to
2002, and he controlled the Thomson family's interest in The Thomson
Corporation.
-- 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
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SOURCE Thomson Financial Corporate Group
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