TORONTO — The Toronto stock market rested at the 15,000 level for the first time late Tuesday morning, supported by higher energy stocks on record high oil and but pressured by BCE Inc. because of takeover financing uncertainty.
New York indexes were firmly lower after U.S. core inflation at the wholesale level during April came in much higher than expected.
Toronto’s S&P/TSX composite index was up 16.8 points to 15,001 — after hitting 15,008 in the early minutes — following a three per cent rise last week generated by rising commodity and financial stocks.
The TSX is up about 23 per cent from the recent low hit Jan. 21 — and analysts wouldn’t be surprised to see some pullback from these levels.
“We’re bumping our heads around the 15,000 level and the market is overbought at these levels here because it came up so fast,” said Joe Ismail, technical analyst for Maison Placements.
“So if pulls back 400, 500 points from here I wouldn’t be surprised — but I’ll be very comfortable with that. We will have short term consolidation for the balance of May and June and probably have a good summer.”
The TSX energy sector climbed 1.9 per cent as oil prices continued to surge. The June crude contract in New York was up $2.08 to US$129.13. EnCana Corp. (TSX:ECA) moved up $1.50 to $95.70 and Suncor Energy Inc. (TSX:SU) ran ahead $2.73 to $70.26.
But BCE Inc. (TSX:BCE) was down $1.65 or 4.25 per cent to $37.17, well below the $42.75 per share promised in the $52-billion cash takeover announced last June by a group led by the Ontario Teachers’ Pension Plan. The New York Times has reported that banks behind the deal are pressing to amend the terms.
The TSX Venture Exchange advanced 44.58 points to 2,655.9 while the Canadian dollar moved up 0.51 cent to 100.53 cents US.
New York’s Dow Jones industrials fell 175.05 points to 12,853.11.
The Nasdaq composite index lost 28.91 points to 2,487.18 while the S&P 500 index gave back 11.84 points to 1,414.79 after the U.S. Labour Department reported wholesale inflation was 0.2 per cent in April — a moderate pace largely attributable to the agency’s seasonal adjustments. Excluding food and energy, prices rose 0.4 per cent in April — double what economists had expected.
As rising prices for fuel, food and utilities hit companies and consumers, the biggest home-renovation retailer in North America reported a 66 per cent drop in first-quarter profit to US$356 million. Home Depot Inc. said sales at stores open a year or more slumped 6.5 per cent. Its shares fell $1.20 to US$27.67 in New York.
The TSX financial sector was down almost one per cent with CIBC losing 92 cents to $74.20 and Bank of Montreal fell 58 cents to $49.39.
The gold sector was positive, ahead 1.5 per cent, as the June bullion contract on the Nymex rose $12.80 to US$918.60 an ounce. Barrick Gold (TSX:ABX) gained $1.12 to $41.30.
Base metal stocks were down 2.25 per cent with Teck Cominco Ltd. (TSX:TCK.B) losing $1.87 to $49.84.
Two market heavyweights were dragging the TSX lower. Research In Motion Ltd.(TSX:RIM) fell $4.91 to $135.40 while Potash Corp. lost $7.29 to $200.
Canadian Superior Energy Inc. (TSX:SNG) was up 25 cents at $4.26 after announcing a joint venture with Global LNG Inc. of New York to build a US$550-million liquefied natural gas import terminal 24 kilometres off New Jersey. Subject to regulatory approval, the Excalibur project is designed to begin delivering 2.4 billion cubic feet per day of gas by late 2011.
On overseas stock markets, Hong Kong’s key index fell 2.2 per cent on worries over high oil prices and weakness in mainland markets. The Hang Seng closed down 572.77 points at 25,169.46.
In its Hong Kong debut, Asia Cement jumped 38 per cent, boosted by earthquake reconstruction demand.
Tokyo’s Nikkei index declined 0.8 per cent, losing, 109.52 points to 14,160.09 as Japan’s central bank kept interest rates steady amid worries about a global slowdown.
London’s FTSE 100 index was down 146.9 points to 6,229.6, while the German DAX declined 115.47 to 7,110.47 and the Paris CAC-40 lost 86.39 points to 5,055.71.
-- THE CANADIAN PRESS
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