Business
Rescue leads to stock climb
Rescue leads to stock climb
About this update from Ensign Energy Services Inc.
[{"type":"text","content":"\nRescue leads to stock climb\n\n\n May 10, 2010 (Baystreet.ca) -- Stock markets were up sharply Monday afternoon as investors breathed a collective sigh of relief after the European Union signaled it would do whatever is necessary to protect the euro currency and deal with a severe government debt crisis.The S&P/TSX composite index rocketed 255.47 points, or 2.2%, to close at 11,947.90. However, analysts warned that although the moves are good news, they don't mean the problem that started out as a Greek debt crisis and morphed into wider worries about government default has gone away.The moves by the European Union also pushed the Canadian dollar and the euro, as well as commodity prices, sharply higher after investors had piled into the perceived safe haven of the U.S. dollar over the last few weeks.Copper prices also rebounded with the July contract ahead eight cents to $3.23 U.S. a pound. The base metals sector advanced, and Teck Resources bounded ahead $3.06 to $39.40 while Equinox Minerals was up 22 cents at $3.82.The financial sector was also stronger, after bank stocks fell back last week on fears about how the growing government debt crisis could spark a freeze in credit markets similar to that of the fall of 2008. Royal Bank was ahead $1.14 at $60.06 and TD Bank improved by $1.73 to $73.65.Railway stocks also made headway following severe losses last week alongside falling commodity prices. Canadian National Railways advanced $2.55 to $60.71 and Canadian Pacific ran ahead $2.73 to $59.18.The TSX global gold sector was ahead, Centerra Gold added 43 cents to $12.31.In corporate news, drilling and well-servicing company Ensign Energy Services Inc. saw its first-quarter profit fall by 45% from the same time last year to $40 million or 26 cents per share. Revenue declined 12% to $352.8 million and its shares gained 20 cents to $13.51.Paramount Resources Ltd.'s shares were up 72 cents to $17.44 after it agreed to buy the remainder of Redcliffe Exploration Inc. by offering other shareholders a 31% premium above Friday's market price. Redcliffe shares jumped nine cents to 41 cents.Uranium One Inc. shares were off four cents to $2.50 after the company reported a $21.5-million U.S. net loss in the first quarter. Revenue also fell 17% from the comparable period, operating costs increased and a large currency-related accounting g...