UPDATE 3-Toronto stocks hit by profit-taking despite oil

Reuters: [2008-05-09 23:08:00]

(Adds details)

By Wojtek Dabrowski

TORONTO, May 9 (Reuters) - The Toronto Stock Exchange's main index finished in the red on Friday as profit-taking cooled the energy sector even though oil prices hit another record high.

The S&P/TSX composite index <.GSPTSE> dropped 86.80 points, or 0.59 percent, to close at 14,521.19.

"We had such a very good day yesterday and this market is still a very tricky market, so we probably ran into some profit-taking today," said John Kinsey, portfolio manager at Caldwell Securities Ltd. The index rose more than 200 points on Thursday.

Eight of the 10 main subgroups on the benchmark ended lower, including the key energy and materials sectors, which dropped 0.52 percent and 1.83 percent, respectively. Financials inched 0.06 percent lower.

The S&P/TSX 60 index of Canadian large-cap stocks lost 5.99 points, or 0.69 percent, to end at 863.46.

Oil shares fell even though crude jumped to a record high above $126 a barrel, extending its gains on fuel supply concerns and speculator buying.

Canadian Natural Resources Ltd <CNQ.TO> was among the energy companies that fell, losing C$1.85, or 1.9 percent, to C$94.15 a day after it reported a surge in quarterly profit because of rocketing oil prices.

Oil and gas powerhouse EnCana Corp <ECA.TO> fell 96 Canadian cents, or 1.1 percent, to end at C$86.52.

"The stocks are down for a change, they're not following their commodity," Kinsey said.

Gold prices moved higher on the back of oil on Friday -- an increase not reflected in the shares of gold producers such as Barrick Gold <ABX.TO>, which fell C$1.49, or 3.6 percent, to finish at C$39.51.

Among companies reporting results, ACE Aviation Holdings <ACEa.TO>, parent of airline Air Canada <ACa.TO>, posted a first-quarter loss on Friday because of one-time charges and said it would buy back about 42 percent of its stock. Its shares spiked C$1.41, or 7 percent, to C$21.46.

In the United States, the Dow Jones industrial average shed 120.90 points, or 0.94 percent, to close at 12,745.88. There, a dismal set of results from insurance behemoth American International Group <AIG.N> raised doubts that the end of the credit crisis was near. The tech-heavy Nasdaq moved lower by 5.72 points, or 0.23 percent, to 2,445.52.

($1=$1.02 Canadian) (Reporting by Wojtek Dabrowski; editing by Peter Galloway) ((wojtek.dabrowski@reuters.com; +1-416-941-8009; Reuters Messaging: wojtek.dabrowski.reuters.com@reuters.net)) Keywords: MARKETS CANADA STOCKS

Argentine stocks rise on safe-haven buying

Reuters: [2008-05-09 23:07:00]

BUENOS AIRES, May 9 (Reuters) - Argentine stocks bucked the downward regional trend on Friday because of safe-haven buying triggered by a prolonged farming conflict and a further weakening of the peso, traders said.

The MerVal index <.MERV> of leading stocks closed up 0.59 percent to 2,114.44 points, accumulating a gain of 0.32 percent over the course of the week despite jitters over renewed anti-government protests.

"The MerVal steered away from the global losses because a variety of rumors drove investors to look for refuge in stocks," said Ruben Pascuali, a trader at the Mayoral Bursatil brokerage.

Volume on the broad market swelled to a moderate $32 million and of active issues, 47 advanced, 24 declined and 11 were unchanged.

"Against the backdrop of uncertainty, investors found the best refuge in Petrobras Energia Participaciones <PCH.BA>," Pascuali said.

Stock in the energy firm, the Argentine arm of Brazilian state oil company Petrobras, closed up 3.83 percent to 4.33 pesos per share after it reported a higher first-quarter net profit.

Farmers lined highways for a second day on Thursday in fresh protests against a sliding-scale of grains export taxes that triggered a three-week farm strike in March.

Jitters over the dispute fueled dollar purchases, sending the Argentine peso lower for a fourth straight session. In informal trade between foreign exchange houses, as measured by Reuters, it depreciated by 0.46 percent to 3.265/3.27 per dollar <ARSB=.

However, in formal interbank trade -- where the central bank intervenes in the market to keep the currency stable -- the peso firmed by 0.08 percent to 3.175/3.1775 per dollar <ARS=RASL>.

Fresh farming protests continued to feed the cautious mood in the debt market, with locally traded bonds <AR/BONOS> falling by 0.2 percent on average due to profit-taking of gains racked up earlier in the session.

Peso-denominated Discount bonds fell 0.4 percent in over-the-counter trade while the same bond in dollars rose by the same margin.

Expectation over the release of the April inflation figure -- 0.8 percent -- also caused caution. More than 40 percent of Argentina's debt load is indexed to inflation. (Reporting by Walter Bianchi; Writing by Helen Popper; Editing by Diane Craft) ((helen.popper@thomsonreuters.com; +54-11-4318-0655; Reuters Messaging: helen.popper.reuters.com@reuters.net))

Keywords: MARKETS ARGENTINA/

Mexico bonds slide to 4-month low, stocks fall

Reuters: [2008-05-09 22:50:00]

(Recasts; adds quote, details)

MEXICO CITY, May 9 (Reuters) - Mexican bonds fell on Friday for a third straight day after inflation hit a three-year high, while stocks slipped, dragged down by losses in shares of miners as global metals prices fell.

The government's benchmark 10-year peso bond <MX10YT=RR> fell 0.462 of a point in price to bid 98.12, pushing its yield up 7 basis points to 8.03 percent, a four-month high.

The benchmark IPC stock index <.MXX> lost 0.25 percent to 30,674.36 points while the peso <MXN=> <MEX01> weakened slightly, down 0.04 percent to 10.5755 per dollar at the official central bank close.

Consumer prices rose 4.55 percent in the 12 months through April, well above the level the central bank says it can tolerate, and reinforced expectations this week that borrowing costs will not be coming down anytime soon.

"This is making people nervous that the central bank could raise its reference rate," said Miguel Gaytan, a fixed-income analyst at consultancy Bursametrica Management.

Mexico's central bank has held interest rates at 7.5 percent for six months since last hiking in October 2007.

In stock trading, miner Grupo Mexico <GMEXICOB.MX>, one of the world's biggest copper producers, lost 2.13 percent to 78.16 pesos as copper futures fell as inventories in London and Shanghai surged.

Miner Penoles <PENOLES.MX>, whose subsidiary Fresnillo Ltd is the world's biggest producer of refined silver, lost 3.36 percent to 299.76 pesos.

Penoles floated Frenillio on the London exchange on Friday, raising 905 million pounds ($1.77 billion), as part of a strategy to separate its precious metals from its base metals units.

Mexican airport operator GAP <GAPB.MX> plunged 8.18 percent to 39.07 pesos, the biggest drop the stock has seen since it was listed in April 2006, after it reported on Thursday that its April passenger traffic fell 5.3 percent.

Losses in the IPC index were offset by gains at top retailer Wal-Mart de Mexico <WALMEXV.MX>, which added 1.34 to 43.81 pesos.

Shares of petrochemical producer Mexichem <MEXCHEM.MX> jumped 5.68 percent 78.36 pesos, its biggest single day gain in four months, after Citigroup raised its one-year target price for the stock to 127 pesos from 80 pesos on the possibility of a joint venture in its fluorine business. (Reporting by Michael O'Boyle and Lizbeth Salazar) ((michael.oboyle@reuters.com; +5255-5282-7160; Reuters Messaging: jason.lange.reuters.com@reuters.net)) Keywords: MARKETS MEXICO/

STOCKS NEWS US-Finance, Energy, Tech insiders most active buyers

Reuters: [2008-05-09 22:39:00]

    Stocks on the move [HOT-RTRS] Real-time Equity news [U E] 
    U.S. stock market report [.N] 
 
1620 ET 09May2008-Finance, Energy, Tech insiders most active buyers this week 
------------------------------------------------------------------------------- 
   Finance, Energy, and Tech company insiders were the most active sector 
buyers this past week, accounting for 76 percent of $20 million in purchases, 
according to Thomson Reuters data. 
    Insiders conducted the most buying activity, by market value, in oil & gas 
refining, regional banks, insurance, semiconductors, and equity specialty 
REITS, according to the data. Finance sector insiders purchased $8.4 million. 
    The top five buying insiders were Dan Duncan, chairman of Enterprise 
Products Partners <EPD.N>, Carl Berg a director at Mosys Systems Inc <MOSY.O> , 
Wayne Nordberg a director at Annaly Capital Management <NLY.N>, Earl Steinert 
Jr a director at Great Southern Bancorp Inc <GSBC.O>, and Antonio De Castro of 
Reynolds, a director at American Inc <RAI.N>. Shares purchased by the top five 
cost $4.3 million. 
    Reuters Messaging: rm://kristina.cooke.reuters.com@reuters.net 
    
1616 ET 09May08-FedEx shares fall after the bell 
------------------------------------------------------------------------------- 
  Shares of FedEx Corp <FDX.N> fell 2.6 percent to $88.00 in extended trade on 
Friday after the delivery company lowered its fourth-quarter earnings per share 
guidance. For details see [ID:nWNAS3390] 
   Reuters Messaging: rm://kristina.cooke.reuters.com@reuters.net 
    
1612 ET 09May08-US STOCKS-AIG's loss and record oil sour Wall St mood 
------------------------------------------------------------------------------- 
    U.S. stocks fell on Friday as the price of oil set another record and 
concerns about the financial sector flared up again after American 
International Group Inc <AIG.N> reported a massive loss. 
    For more, please click on [.N] 
    Reuters Messaging: rm://kristina.cooke.reuters.com@reuters.net 
    
1535 ET 09May2008-First-quarter results seen falling 17.4 pct 
------------------------------------------------------------------------------ 
     As of Friday, first-quarter earnings were expected to decline 17.4 
percent, according to the latest Thomson Reuters earnings report. 
     Financial sector results are seen down 78.9 percent while consumer 
discretionary companies are seen down 23 percent. 
    Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net 
 
1529 ET 09May2008-HEADLINE STOCKS - U.S. stocks on the move on May 9 
------------------------------------------------------------------------------ 
    Some U.S. stocks on the move on Friday: 
    AMERICAN INTERNATIONAL GROUP INC <AIG.N> 
    CITIGROUP INC <C.N> 
    MYLAN INC <MYL.N> 
    PRICELINE.COM INC <PCLN.O> 
    For more please double click [ID:nN09198237] 
    Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net 
 
1424 ET 09May2008-US STOCKS-Market drops on AIG's loss, higher oil 
------------------------------------------------------------------------------ 
    U.S. stocks fell on Friday as concerns about the financial sector flared up 
again after American International Group Inc <AIG.N> reported a record loss and 
as the price of oil set another record. 
    For more please double click [ID:nN09504112] 
    Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net 
 
1442 ET 09May2008-"Crunch" gets too much credit--Barclays Capital 
--------------------------------------------------------------------------- 
    "Many believe that a credit crunch will prevent the economy from growing in 
the coming quarters. While we think that tighter credit is an important force 
in the residential and commercial real estate markets, we do not believe it 
will prevent a pickup in growth in second half of 2008," Barclays Capital 
Research said in a note. 
    "Non-mortgage credit continues to flow at a robust pace to both consumers 
and corporations. Further, we think that corporate sector fundamentals will 
remain healthy, which makes it unlikely that the bond market, a far more 
important source of funds to the corporate sector than banks, will shut down in 
the coming months." 
    Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net 
    
1354 ET 09May2008-AIG on track for historic weekly slide 
--------------------------------------------------------------------------- 
    Shares of American International Group Inc <AIG.N> were on track for their 
biggest ever weekly slide, down more than 17 percent, according to Thomson 
Reuters charts. 
    The S&P insurance index <.GSPINSC> headed for its biggest weekly drop since 
mid-January, down more than 7 percent. 
    For more please double click [ID:nN09565485] 
    Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net 
    
1131 ET 09May2008-Players flock to Blue Coat calls 
------------------------------------------------------------------------------ 
    Options flow has been notably bullish in Internet monitoring equipment 
maker Blue Coat Systems Inc <BCSI.O> as its shares rose 1.75 percent to $25.54 
in morning trade. 
    There has been no stock specific news to explain the action. Option volume 
was running four times the normal level with 8,576 calls and only 786 puts 
traded, according to Trade Alert. "Today the activity is gaining and 
approaching extreme in the call options, particularly in the May call options 
that will expire in 5 trading days," said optionmonster co-founder Pete 
Najarian. The May $25 call strike traded more than 4,000 contracts vs. open 
interest of 4,532 and fetched $1.35. The higher May $30 call strike was also 
busy with 3,134 contracts vs. open interest of 778, suggesting positions were 
initiated. 
    Reuters Messaging rm://doris.frankel.reuters.com@reuters.net 
 
Keywords: MARKETS STOCKSNEWS  
    

US STOCKS-AIG's loss and record oil sour mood on Wall St

Reuters: [2008-05-09 22:27:00]

(Updates to close)

By Kristina Cooke

NEW YORK, May 9 (Reuters) - U.S. stocks fell on Friday as the price of oil set another record and concerns about the financial sector flared up again after American International Group Inc <AIG.N> reported a massive loss.

AIG's dismal results raised doubts that the end of the credit crisis was near. The world's largest insurer wrote down assets linked to subprime mortgages and said it would need to raise $12.5 billion to boost its balance sheet. Its shares fell almost 9 percent.

Oil rose above $126 a barrel, spurring concerns about inflation and that consumers will pare back their spending as higher prices at the pump cut into their discretionary income.

Pharmaceutical companies added to the gloomy picture. Mylan Inc <MYL.N> posted a wider loss, while Bristol Myers Squibb Co <BMY.N> fell on the threat of generic competition in Europe for its top-selling blood thinner.

"There doesn't seem to be any stopping the price of oil, it hits a record every day, and investors are starting to realize there's not going to be a quick fix to this problem," said Bucky Hellwig, senior vice president at Morgan Asset Management, in Birmingham, Alabama.

"Also, we're seeing the spiral playing out of declining home prices making financials' underlying collateral worth less. At best, financials will have to keep issuing new capital, which dilutes existing shares, so down the shares go."

The Dow Jones industrial average <.DJI> fell 120.90 points, or 0.94 percent, to close at 12,745.88. The Standard & Poor's 500 Index <.SPX> shed 9.40 points, or 0.67 percent, to end at 1,388.28, while the Nasdaq Composite Index <.IXIC> slipped 5.72 points, or 0.23 percent, to 2,445.52.

For the week, all three indexes ended lower: The Dow lost 2.4 percent, the S&P 500 slid 1.8 percent and the Nasdaq tumbled 1.3 percent.

Another big financial company, Citigroup Inc <C.N>, said it intends to shed roughly $400 billion of non-core assets in a bid to become more competitive. [ID:nN08433220].

Citi's shares fell 2.8 percent to $23.63, while AIG shares slid 8.8 percent to $40.28. AIG was the heaviest weight on both the Dow and the S&P 500.

The Nasdaq fell less than the other indexes. Its losses were kept in check by a stronger-than-expected profit from video game maker Activision Inc <ATVI.O> and upbeat broker comments on graphics company Nvidia Corp <NVDA.O>. Activision shares jumped 14.2 percent to $31.64, while Nvidia's stock gained 2.6 percent to $22.53.

Despite the rise in oil, Exxon Mobil <XOM.N> was among the top drags on the S&P 500 and the Dow. Analysts said investors may be locking in profits after strong gains in recent weeks. Others noted that when the price of oil reaches a certain level, it becomes more difficult for energy companies to pass on their higher input costs to consumers.

U.S. crude oil futures hit a record $126.25 a barrel in post-settlement trading, before pulling back somewhat to $126.17. On the New York Mercantile Exchange, June crude settled at $125.96 a barrel, up $2.27.

Shares of Exxon Mobil <XOM.N> fell 0.8 percent to $88.82 on the NYSE. EOG Resources <EOG.N> shed 0.9 percent to $138.50.

Mylan stock sank 8.4 percent to $11.42, while Bristol Myers stock declined 4.7 percent to $21.71.

A record drop in U.S. imports because of slowing domestic demand took a big bite out of the U.S. trade deficit in March despite record high oil prices.

The trade gap shrank 5.7 percent in March to $58.2 billion, the Commerce Department reported; that figure was much smaller than expected.

Volume was light on the New York Stock Exchange, where about 1.10 billion shares changed hands, below last year's estimated daily average. On the Nasdaq, about 1.71 billion shares traded, below last year's daily average of 2.17 billion.

Decliners outnumbered advancers on the NYSE by a ratio of about 8 to 7, while on the Nasdaq, about seven stocks fell for every six that rose. (Editing by Jan Paschal) ((kristina.cooke@thomsonreuters.com; +1 646 223 6154; Reuters Messaging:rm://kristina.cooke.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) Keywords: MARKETS STOCKS

 
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