Thursday, September 28, 2006, 4:15 PM EST (Thomson Financial Corporate
Services): Seven minutes into trading, the Dow briefly broke through its
all- time record; the TSX also stayed up all day, as oil and gold climbed
and bargain hunters continued to snap up resource stocks. Bombardier
trumpeted a US$1.65 billion dollar contract in Africa and Bank of Montreal
lifted Financials as it bought up another U.S. bank. In resource news, Teck
is preparing for a possible strike while a Norwegian energy giant is
scanning the oil sands for new opportunities and a partner to help them
out.
* The S&P/TSX Stock Exchange Composite Index rose 65.86 points, or
0.56%.
* In August, due largely to cheaper metal and oil, Canadian industrial
product prices dropped unexpectedly by 0.5% (a 0.1% fall was predicted);
the loonie fell accordingly today.
* Turning to the U.S., after revisions, the GDP grew at 2.6% in the
second quarter, less than the 2.9% estimated in July, due mostly to the
slowing housing market and less inventory building by businesses. The
markets now await Canada's July GDP figures tomorrow.
* Teck Cominco's stock shrugged off a strike threat at Highland Valley
copper mine in B.C. If Teck cannot come to an understanding with United
Steel Workers, 900 workers may walk off the job this Sunday.
* Meanwhile, yesterday, the Bank of Montreal announced plans to buy
Indianapolis-based First National Bank & Trust for US$920 million, as it
continues to expand in the U.S. Midwest. The Bank's Harris Financial Corp.
is already the second-largest bank in Chicago. The deal, if cleared by
American and Canadian regulators, would close in January.
* Goldcorp's CEO, Ian Telfer, dismissed yesterday's demand from founder
Rob McEwen about letting shareholders vote in the Glamis Gold takeover bid,
saying "it was unfortunate that he was using the event to talk about his
own investment portfolio."
* Bombardier boosted Industrials, after it won a US$1.65 billion
contract to build and maintain a rapid rail transit system in Gauteng
Province, South Africa. The railroad will connect Johannesburg, Tshwane
(aka Pretoria) and the Johannesburg International Airport.
* Gold soared upwards for the second day in a row as oil's rise again
made the yellow metal a desirable hedge against inflation. At the end of
the trading day it was up US$7.60 to close at US$610.90.
* Even as the head of OPEC denied them, rumours flew of production cuts
when Reuters mistakenly announced one in a release. While never approaching
yesterday's near-two-dollar spike, oil hovered above US$63 briefly before
settling down at US$62.76, off US$0.20.
-- Carolyn.Crapo@contractor.Thomson.com; Thomson Financial Corporate
Services
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SOURCE Thomson Financial Corporate Group
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