Friday, June 23, 2006, 4:15 PM EST (Thomson Financial Corporate
Services): Canadian stocks witnessed strong gains on the day, with the
exception of the financial sector. Gold and energy shares were particularly
upbeat, with the energy sector receiving some support from M&A activity.
Meanwhile, U.S. stocks mostly declined after a weaker-than-expected report
on U.S. durable goods orders was released.
* The S&P/TSX Stock Exchange Composite Index jumped 118.81 points, or
1.07%.
* On the U.S. economic front, shares declined after May durable goods
orders unexpectedly dropped by 0.3% in May from April, the second
consecutive down month, the Commerce Department reported.
* Energy shares rallied today. In major U.S. M&A activity, oil and natural
gas producer Anadarko Petroleum Corp. agreed to pay US$21 billion to
acquire two smaller competitors, Kerr-McGee Corp. and Western Gas
Resources Inc., in a bid to boost its North American output. Anadarko
will pay US$16.4 billion in cash, or US$70.50 per share, for Oklahoma
City-based Kerr-McGee. That represents a 40% premium over Thursday's
closing price of $50.30 on the New York Stock Exchange.
* Meanwhile, Suncor Energy surged, after Deutsche Bank raised the firm's
rating to ''buy'' from ''hold.''
* Gold stocks also witnessed sizeable gains on strength in the yellow
metal. On the corporate side, Scotia raised its price targets on Bema
Gold and Goldcorp, boosting those stocks.
* Elsewhere, Falconbridge Ltd. made an offer late Thursday to buy the
shares of its subsidiary Novicourt Inc. that it does not already own for
C$2.30 a share. Falconbridge edged lower on the day.
* In metals, nickel producer Inco Ltd. is investing C$115 million to
reduce sulphur dioxide emissions from its Sudbury, Ont., operations by
34%; Inco fell on the development.
* Meanwhile, construction company Aecon Group Inc. has won a C$54 million
contract from the Ontario Ministry of Transportation to realign part of
Highway 11 at Burk's Falls in a 50-50 joint venture with Leo Alarie and
Sons Ltd. Aecon ended the session higher.
-- 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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