> Finance & Stock Exchange > Banks and financial institutions > Bank
UPDATE 3-Toronto stocks yanked higher by robust resources
Reuters: [2008-05-15 23:35:00]
(Adds details, quotes)
*Index closes at record high
*Resource and financial sectors rally
By Leah Schnurr
TORONTO, May 15 (Reuters) - The Toronto Stock Exchange's main index popped up more than 1 percent on Thursday, propelled further into record high territory by strong resource and financial shares.
Inmet Mining <IMN.TO> was the biggest net gainer on the day, rising C$6.25, or 9.3 percent, to C$73.75. Fertilizer company Potash Corp of Saskatchewan <POT.TO> was also among the leaders, finishing up C$5.28, or 2.7 percent, at C$204.50.
Gold producers also jumped, benefiting from rising gold prices. Agnico-Eagle Mines <AEM.TO> was up C$3.38, or 5.3 percent, at C$67.29, while the gold subindex gained 3.6 percent.
The S&P/TSX composite index <.GSPTSE> closed up 201.75 points, or 1.38 percent, at 14,828.06 with all but one of its 10 main sectors moving higher.
The surge helped the benchmark climb further into record territory, continuing the week's trend after it broke last summer's record high on Monday.
The financials sector, the biggest group on the index by weight, rose 1.6 percent, with Toronto-Dominion Bank <TD.TO> rising 94 Canadian cents, or 1.4 percent, to C$68.51, and Canadian Imperial Bank of Commerce <CM.TO> up 83 Canadian cents, or 1.1 percent, at C$74.84.
Adrian Mastracci, portfolio manager and president at KCM Wealth Management Inc., in Vancouver, said that banks were helped by easing trepidation over what problems may be still lurking in the financial sector.
"I think as investors look at more news being disseminated, as some of the financials have reported the potential losses that they're going to take, I guess they feel that we know more of the situation," Mastracci said.
"The more they know, they more they feel better about the prospects going forward, and I think there's some of that in there today."
On the downside, FirstService Corp <FSV.TO> tumbled C$2.77, or 12.2 percent, to C$19.96 after the property services firm swung to a fourth-quarter loss as it was stung by unfavorable market conditions.
The telecoms sector was the only group in negative territory, giving up 0.2 percent.
Shares of Lundin Mining <LUN.TO> added 68 Canadian cents, or 8.8 percent, to C$8.38 after it reported first-quarter profit rose, helped by rising copper and lead prices, as acquisitions increased production.
The Toronto benchmark has climbed more than 20 percent from the lows seen in January, when it dipped below the 12,000 mark amid worries over the health of the U.S. economy and troubles in the financial and credit markets.
Since then it has been spurred higher by red-hot commodities prices, and recent optimism that the worst of the credit problems have been seen. Analysts have also noted that the current round of corporate results generally have been better than had been feared.
"We're getting to the end of earnings season and we got through this without any terribly nasty surprises," said Rick Hutcheon, president and chief operating officer at RKH Investments.
"I think that the mood of investors is probably starting to gain a little traction, and that we're starting to feel a little more optimistic that perhaps the worst of the credit issues are beginning to recede."
Market volume was 441 million shares worth C$8.1 billion. Advancers outpaced decliners 985 to 655. The blue chip S&P/TSX 60 index <.TSE60> closed up 13.14 points, or 1.51 percent, at 884.73.
In New York, stocks were up as a pullback in oil prices calmed worries about inflation. The Dow Jones industrial average <.DJI> closed up 94.28 points, or 0.73 percent, at 12,992.66, and the Nasdaq Composite Index <.IXIC> rose 37.03 points, or 1.48 percent, to 2,533.73. ($1=$1.00 Canadian) (Editing by Peter Galloway) ((leah.schnurr@thomsonreuters.com; +1 416 941 8056; Reuters Messaging: leah.schnurr.reuters.net@reuters.com))
Keywords: MARKETS CANADA STOCKS
UPDATE 2-Toronto stocks pulled sharply higher by resources
Reuters: [2008-05-15 23:04:00]
(Updates with official closing numbers, adds details)
*Index closes at record high
*Resource and financial sectors rally
TORONTO, May 15 (Reuters) - The Toronto Stock Exchange's main index popped up more than 1 percent on Thursday, propelled further into record high territory by strong resource and financial shares.
Inmet Mining <IMN.TO> was the biggest net gainer on the day, rising C$6.25, or 9.3 percent, to C$73.75. Fertilizer company Potash Corp of Saskatchewan <POT.TO> was also among the leaders, finishing up C$5.28, or 2.7 percent, at C$204.50.
Gold producers also jumped, benefiting from rising gold prices. Agnico-Eagle Mines <AEM.TO> was up C$3.38, or 5.3 percent, at C$67.29, while the subindex gained 3.6 percent.
The S&P/TSX composite index <.GSPTSE> closed up 201.75 points, or 1.38 percent, at 14,828.06 with all but one of its 10 main sectors moving higher.
The surge helped the benchmark climb further into record territory, continuing the week's trend after it broke last summer's record high on Monday.
The financials sector, the biggest group on the index by weight, rose 1.6 percent, with Toronto-Dominion Bank <TD.TO> rising 94 Canadian cents, or 1.4 percent, to C$68.51, and Canadian Imperial Bank of Commerce <CM.TO> up 83 Canadian cents, or 1.1 percent, at C$74.84.
On the downside, FirstService Corp <FSV.TO> tumbled C$2.77, or 12.2 percent, to C$19.96 after the property services firm swung to a fourth-quarter loss as it was stung by unfavorable market conditions.
The telecoms sector was the only group in negative territory, giving up 0.2 percent. ($1=$1.00 Canadian) (Reporting by Leah Schnurr; Editing by Peter Galloway) ((leah.schnurr@thomsonreuters.com; +1 416 941 8056; Reuters Messaging: leah.schnurr.reuters.net@reuters.com))
Keywords: MARKETS CANADA STOCKS
.
Keywords: MARKETS CANADA STOCKS
US CORP BONDS-Market stronger, new debt sales continue
Reuters: [2008-05-15 22:57:00]
NEW YORK, May 15 (Reuters) - The U.S. corporate credit
markets rallied on Thursday, while companies including HBOS Plc
<HBOS.L> and NiSource Finance Corp tapped the new issue
market.
The benchmark investment grade credit derivative index
tightened around 5.5 basis points to 90 basis points, its
tightest level in more than a week.
The rally was in line with a higher stock market, which was
buoyed by a pullback in crude oil. Healthy demand for new bond
issues also supported the market.
"There are a lot of new deals out there," said Mirko
Mikelic, senior portfolio manager at Fifth Third Asset
Management in Grand Rapids, Michigan.
New debt sales have been pricing more favorably than in
previous months, indicating better demand for new debt, he
said. "A lot of people are putting cash to work, the cash
market has moderately improved,"
HBOS, Britain's biggest mortgage lender, on Thursday sold
$2.0 billion in debt in the 144a private placement market, said
market sources.
NiSource Finance, a unit of electric utility NiSource Inc
<NI.N>, also sold $700 million in debt.
In the high yield market, Oklahoma City-based oil and
natural gas company SandRidge Energy Inc <SD.N> sold $750
million of 10-year senior notes in the 144a private placement
market. The size of the deal was increased from the originally
planned $500 million.
Financials dominated secondary trading with JPMorgan Chase
& Co's <JPM.N> 7.9 percent bond due 2018 the most actively
traded, according to MarketAxess.
Residential Capital's 8.375 percent bond due 2010 slipped
in jumpy trade. ResCap is offering to exchange the debt for new
bonds with a later maturity. The deadline for the offer will
expire on Friday.
The bond fell to 49 cents on the dollar, from 49.5 cents at
Wednesday's close, according to MarketAxess.
(Reporting by Karen Brettell and Anastasija Johnson; Editing
by Leslie Adler)
((karen.brettell@thomsonreuters.com; +1 646 223 6274; Reuters
Messaging: karen.brettell.reuters.com@reuters.net ))
For other related fixed-income quotations, stories and
guides to Reuters pages, please double click on the symbol:
U.S. CORPORATE BOND PRICE QUOTATIONS...<NASDBONDS>
U.S. CREDIT DEFAULT SWAP COLUMN........[CDV/]
U.S. CREDIT DEFAULT SWAP NEWS..........[CDV]
EUROPEAN CORPORATE BOND MARKET REPORT..[EUB/]
EUROPEAN CORPORATE BOND MARKET REPORT..[EUB/]
CREDIT DEFAULT SWAP GUIDE..............<CDSINDEX>
FIXED INCOME GUIDE.....................<BONDS>
U.S. SWAP SPREADS REPORT...............[SWP/]
U.S. TREASURY MARKET REPORT............[US/]
U.S. TREASURY OUTLOOK..................[US/0]
U.S. MUNICIPAL BOND MARKET REPORT......[MUNI/]
Keywords: MARKETS USCORPBONDS
EXCLUSIVE-JPMorgan to close or spin-off most Bear funds
Reuters: [2008-05-15 22:56:00]
NEW YORK, May 15 (Reuters) - JPMorgan Chase & Co <JPM.N> expects to liquidate or spin-off much of the asset management arm of Bear Stearns Cos <BSC.N> after it takes over Bear next month, people familiar with the situation said.
Bear Stearns Asset Management, which during the past year generated more bad news than revenues, has about 400 employees and managed $39 billion in investments at the end of February.
On Monday, JPMorgan Chief Executive Jamie Dimon told a UBS investor conference he expected the bank would close down "big parts of Bear's asset management business."
Ultimately, the people familiar said, roughly a third of Bear's asset management employees are expected to get job offers from JPMorgan. Some funds with strong track records will be spun-off to their management teams.
Meanwhile JPMorgan, which is eager to add on Bear's brokerage business, will shut Bear's brokerage operations in London and Hong Kong over the next two months. About 10 brokers plus support staff in London and roughly eight employees in Hong Kong will lose jobs as a result, the sources said.
(Reporting by Joseph A. Giannone) ((joseph.giannone@thomsonreuters.com; +1 646 223 6184; Reuters Messaging: joseph.giannone.reuters.com@reuters.net )) Keywords: JPMORGAN/BEARSTEARNS FUNDS
PRESS DIGEST-Australian Business News - May 16
Reuters: [2008-05-15 22:56:00]
Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Seven Network <SEV.AX> chairman Kerry Stokes has spent more than A$40 million this week raising from 53.7 percent to 65.3 percent his stake in equipment hire company National Hire <NHR.AX>. Analysts welcomed the move, agreeing that the environment for non-residential construction spending was buoyant following announcements in this week's federal budget that at least A$20 billion will be spent nationally on roads, railways, ports and other infrastructure projects. The mining boom is also fuelling demand for equipment hire. Page 56.
--
Melbourne-based Indophil Resources <IRN.AX> has rejected a A$426 million takeover bid from Xstrata <XTA.L>, arguing that it is "low ball and unrealistic". Swiss miner Xstrata denied this, saying the offer, which it wants to use as a means of increasing its interest in the Tampakan copper and gold project in the southern Philippines joint owned with Indopohil, represents fair value. Xstrata said the mine still had significant development, financing, and political risk associated with it, hence the "fair price". Page 57.
--
Construction group Leighton Holdings <LEI.AX> yesterday reaffirmed forecasts for full-year earnings growth of more than 30 percent, after announcing net profit of A$375 million for the nine months to March 31. Chief executive Wal King also predicted that revenue would grow by more than 10 percent a year over the next three years, as Leighton struggles to keep pace with a surplus of work in the Middle East and prepares for a surge in government infrastructure spending in Australia. Leighton shares surged to a three-month high on the bullish outlook. Page 58.
--
Adelaide Brighton <ABC.AX> has forecast full-year profit growth of nearly 10 percent as infrastructure and engineering projects fuel demand for construction materials. Chief executive Mark Chellew predicted cement demand would grow by 5 percent this year, up from previous forecasts of 3 percent. He told shareholders that demand in Queensland, Victoria and South Australia was offsetting continuing weakness in the New South Wales building market. Net profit for 2007-08 is expected to be between A$118 million and A$125 million. Page 58.
--
THE AUSTRALIAN (www.theaustralian.news.com.au)
Commonwealth Bank of Australia <CBA.AX> has declined to reaffirm an earlier statement that earnings growth will match or exceed the average of its peers over the medium to short term. Deutsche Bank analyst Ross Brown said this implied CBA "no longer believes it can outperform its peer group," but a CBA spokesman said the bank would not be giving guidance after the backlash suffered by St George Bank <SGB.AX> when it downgraded its projection of 10 percent earnings-per-share growth to 8-10 percent growth. Page 21.
--
Coca-Cola Amatil <CCL.AX> has forecast "high single-digit" growth in net profit this financial year, with most of the boost being provided by its premium beer business. The drinks bottler's shares rose 6 percent, or 45 cents, yesterday to A$8.40 on the news, their biggest gain in almost four months. Chief executive Terry Davis made the forecast at the company's annual general meeting, at a time of softening consumer sentiment and an unexpected 70 percent rise in taxes on pre-mixed alcoholic drinks. Page 21.
--
Speculation that AMP <AMP.AX> is considering a bid for St George Bank, Australia's fifth-largest bank, mounted yesterday when AMP chief executive Craig Dunn refused to rule 'anything in or out'. AMPs banking arm is relatively small, possessing about 1 percent of the national mortgage market. Westpac Banking Corporation <WBC.AX> proposed an A$19 billion friendly takeover of St George earlier this week. Page 21.
--
The China Iron & Steel Association yesterday asked domestic steel mills and iron ore traders "not to support or participate in Rio Tinto's <RIO.AX><RIO.L> spot iron ore sales activities in China." Diversified miner Rio had exercised flexibility clauses in its contracts to divert contracted iron ore sales to premium-priced spot markets, at nearly double the old contract price. Rio dismissed the threats as a negotiation tactic, with both Rio and rival BHP Billiton <BHP.AX><BLT.L> pushing for annual iron ore price rise of around 85 percent. Page 21.
--
THE SYDNEY MORNING HERALD (www.smh.com.au)
Fortescue Metals Group <FMG.AX> has vowed to remain Australian-owned amid speculation the recipient of its first shipment is planning to acquire a major stake in the emerging iron ore company. A Chinese magazine reported this week that steel maker Baosteel <600019.SS> was in a "slow waltz" to take a stake in Fortescue, with United States hedge fund Harbinger Capital Partners apparently willing to sell some or all of its 16 percent stake in return for enormous profits on its initial investment. Fortescue chief executive Andrew Forrest has welcomed Chinese interest. Page 21.
--
Mirvac Group has written off its indirect investment in Sydneys troubled Lane Cove Tunnel, with 2007-08 profit expected to be down A$57.5 million as a result. Shares in the property developer fell 13 cents to A$3.70 on the news, bringing their total fall since December to more than 40 percent. The announcement came after broker Merrill Lynch gave Mirvac shares a "sell" recommendation, citing concerns over the slowdown in the housing sector and the collapse of New South Wales third-largest home builder, Beechwood Homes. Page 22.
--
The Australian Competition and Consumer Commission (ACCC) has won a court order forcing Korean Air <003490.KS> to hand over sensitive documents related to the competition regulator's investigation into price fixing. The Federal Court yesterday rejected Korean Air's claims it was within its rights to withhold the information given the ACCC had already started proceedings. The court is seeking documents related to the tonnages, total revenues, and total revenues attributed to fuel surcharges that KAL derived from air cargo to and from Australia. Page 23.
--
THE AGE (www.theage.com.au)
Commonwealth Bank of Australia says it is assessing the positives and negatives of making a counter-bid for St George Bank, following Westpac Banking Corp's A$19 billion bid earlier this week. National Australia Bank is also looking at St George, while diversified financial group AMP has not ruled out a bid of its own. "These sorts of acquisitions are always successful based on the quality of the execution a number in the past have not been particularly successful and some have," said CBA chief executive Ralph Norris. Page B1.
--
Diversified financial group AMP says it expects a lower full-year profit this year, but that conditions in equity markets will improve late in 2008 and continue improving throughout 2009. Chief executive Craig Dunn said he agreed with Australian bank chiefs that the worst of the global credit crunch ended when the United States Federal Reserve bailed out investment bank Bear Stearns, and that no more big corporate losses were expected. Mr Dunn also did not rule out a bid for St George Bank. Page B1.
--
Takeover target Just Group <JST.AX> has criticised Solomon Lew's Premier Investments <PMV.AX>, arguing it lacks focus, detail and management certainty because it does not have a chief executive. Just, which owns clothing retailers including Just Jeans, Peter Alexander, Portmans and Dotti, has also attacked Premier's corporate governance, claiming it fails to comply with stock exchange Corporate Governance Council recommendations. Just also said shareholders risked being dominated by interests associated with Mr Lew. Page B2.
--
Toyota Motor Corp <7203.T> said global sales of its Prius petrol-electric hybrid car had hit 1 million. It said 1.028 million Prius had been sold since it went on sale in Japan in 1997, with other Toyota hybrids taking cumulative hybrid sales to 1.46 million. Toyota said the Earths atmosphere had been spared 4.5 million tonnes of global warming gases since the models release. The Prius is sold in 40 countries and regions, and is increasing in popularity because of surging petrol prices and concerns about the environment. Page B3.
-- ((Sydney Newsroom +61-2 9373 1800; sydney.newsroom@reuters.com)) Keywords: DIGEST AUSTRALIA BUSINESS
. . .
Next: Turk lira firms on rate hopes, T.Telekom ends flat