Friday, June 30, 2006, 4:15 PM EST (Thomson Financial Corporate
Services): The TSX moderated from its near 200 point rise yesterday, but
still nearly posted a triple-digit increase before the long Canada Day
weekend as the tech sector lifted all boats. RIM expanded its subscriber
base and ATI recovered from yesterday's fall. The energy sector was humming
with merger activity and resource deals, and mixed US economic data was
released. Finally, gold rocketed past the US $600 barrier to close at US
$616.
* The S&P/TSX Stock Exchange Composite Index rose 91.96 points, or
0.80%.
* Technology issues surged on the day. Research in Motion grew steadily
Friday as the firm released news that it is on track to add 700,000
subscribers to its leading BlackBerry service this summer, beating its own
estimate by 25,000. Revenue is predicted to climb between C $620 million to
C $650 million in the second quarter, and the BlackBerry currently holds
75% of the market, with competitors Palm at 20% and Nokia and Motorola at
about 1% each. RIM also posted solid first quarter revenues of C $613
million, again exceeding their own expectations.
* The government of Nova Scotia and natural gas giant EnCana announced
they had signed an Offshore Strategic Energy Agreement (OSEA) that will
establish royalties and provide jobs benefits to the province for use of
the Deep Panuke natural gas field off the NS coast. This is a major step
forward for EnCana to start developing the field; it still must file
reports with environmental agencies and the NS Offshore Petroleum Board.
* The Phelps Dodge-Inco-Falconbridge acquisition saga continued to
develop as the shareholders of Xstrata approved its hostile takeover bid
for Falconbridge. The Ontario Securities Commission has still not issued a
final decision as to whether Falconbridge may exercise its "poison pill"
option. It remains to be seen if the European company will block what would
be the largest merger in Canadian history.
* In other energy sector news, Canadian Oil Sands exercised its right
to match Petro-Canada's bid for Canada Southern, raising its offer to US
$11.10 to beat Petro-Canada's US $11. Canada Southern turned down an
unsolicited bid from Canadian Superior Energy, and is recommending that
shareholders accept Canadian Oil Sands' offer.
* In metals news, the Supreme Court of British Columbia announced
Northgate Minerals was prohibited from acquiring gold company Aurizon
Minerals for now, blocking a resumption of the bid until October 19th. A
disappointed Northgate plans to appeal.
* Resource-related shares powered higher today. Oil nearly broke the US
$74 barrier, rising US $0.41 to US $73.93. Meanwhile, gold did break the US
$600 barrier, closing up US $27.10 to close at US $616. The weaker US
dollar and a fear of not having cash at hand before a long Canadian and
American holiday weekend were suspected.
* The financial conglomerate Onex has purchased the AWG division of
Illinois extended-warranty-supplier Aon.
* Three US economic indicators were released today, before the July 4th
holiday weekend. May personal income and spending figures were released,
and personal income rose 0.4% after rising 0.7% in May. US consumer
spending slowed to 0.4% as well, in line with Wall St. predictions; the
difference was attributed by the Dept. of Commerce to rising gas prices,
which gave Americans less spending money.
* The University of Michigan monthly report on consumer sentiment came
out and topped economists' predictions of 82.4, registering at 84.9 in
June, up from 79.1 in May.
* Finally, the Purchase Management Adjustment rate fell to 56.5 in June
from 61.5 in May, said the National Association of Purchasing Management.
It is feared this may be the beginning of inflation pressures on
manufacturing firms.
-- Carolyn.Crapo@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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