Tuesday, June 20, 2006, 4:15 PM EST (Thomson Financial Corporate
Services): Canadian stocks were mixed today as investors tried to recoup
losses incurred during Monday's 200-point drop. Gold, metal and technology
stocks led the gainers, while the utilities and financial sectors fell. In
the U.S., stocks were also mixed; new home construction data eased fears
about a possible economic slowdown.
* The S&P/TSX Stock Exchange Composite Index slipped 12.10 points, or
0.11%.
* On the economic front, Canada's annual inflation rate accelerated a
higher than expected 2.8% in May as gasoline prices skyrocketed, Statistics
Canada said before the market opened. The core rate, meantime, posted the
biggest uptick since December 2003, rising 2% from 1.6% a year ago.
* In the U.S., a stronger-than-expected jump in new-home construction
raised optimism about the economy's health and offset gloomy housing news
released Monday. The Commerce Department said May housing starts grew 5% to
1.96 million, surpassing estimates of 1.87 million.
* In M&A news, Gildan Activewear raised its earnings outlook after
buying U.S. socks company Kentucky Derby Hosiery Co. for US $45 million.
The stock ended the session higher.
* Also, Savanna Energy Services and Western Lakota agreed to merge.
Western Lakota shareholders will receive 0.64 of a Savanna share for each
share held. The enterprise value of the combined entity will be about C
$1.5 billion.
* Elsewhere, Agrium Inc. said it's paying US $74.5 million for Pursell
Technologies Inc. of Sylacauga, Ala., in a deal that's expected to increase
the Calgary-based company's sales and earnings in the controlled-release
fertilizer business. Agrium stock rose on the news.
* Gold was a positive force on the market today, as the yellow metal
climbed alongside a weaker U.S. dollar. In corporate news, Agnico-Eagle
Mines bounded higher today, after Merrill Lynch upgraded the firm to "buy"
from "neutral," as the investment bank expects gold prices to continue
higher over the few years.
* In commodities, crude oil closed lower for the second-straight day in
a row. China is reportedly working with Saudi Arabia to develop a strategic
oil reserve.
-- Michael.O'Brien@contractor.Thomson.com; Thomson Financial Corporate
Services
This is Thomson Financial Corporate Services Canadian Commentary, which
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accurate, we take no responsibility for inaccurate information and reserve
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SOURCE Thomson Financial Corporate Group
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