Limp start for stocks

Feb. 10, 2009 (Baystreet.ca) --

10:27 am EST Stock markets did not get lucky on Friday the 13th, at least not at the outset.

The S&P TSX Composite Index trended downward in the early going Friday, losing 53.98 points to 8,724.80.

Investors are hopeful that economic leaders from the United States, Canada, Japan and other industrialized nations will come up with clear, specific ways to repair the global financial system at their meeting this weekend.

Officials from the Group of Seven, gathering in Rome on Friday, plan to discuss new rules for financial markets, as well as concerns about protectionist measures in stimulus plans.

Investors have been discouraged most of the week since U.S. Treasury Secretary Timothy Geithner revealed plans to assess financial institutions' health and remove their toxic assets with the help of private investors - but gave few details about how the process would work. The market did not respond enthusiastically, either, to the $789-billion U.S. economic stimulus plan agreed to by Congress.

A 74-seat Q400 Bombardier aircraft operated by Manassas, Va.-based Colgan Air crashed into a house just outside Buffalo, N.Y. Thursday night, killing all 49 people aboard and a person in the home. It was first fatal crash of a commercial airliner in the U.S. in 2 1/2 years.

Bombardier Inc. has dispatched a team to the crash site and its shares were down 15 cents to $3.38.

Desjardins Securities maintained its "buy" rating on the stock with a $6.50 target price.

The Toronto market's energy sector rose as oil prices headed higher after closing Thursday at a two-month low. Suncor Inc. gained 44 cents to $25.03.

The market also found support from the base metals sector, with First Quantum Minerals ahead $1.93 to $30.78.

The gold sector was down, as Goldcorp Inc. faded 85 cents to $38.77.

On the earnings front, Air Canada shares tumbled 44 cents or 23% to $1.49 after the airline said Friday volatility in both fuel prices and foreign exchange rates drove 2008 financial results into the red for both the fourth-quarter and full year.

Air Canada reported a fourth-quarter loss of $727 million, reversing year-earlier profits of $35 million.

Soaring fuel prices took a toll on Air Canada's full-year financial results as well, prompting the company to report a loss of $1.03 billion, reversing year-earlier profits of $429 million or $4.27 per share.

Telus Corp.'s fourth-quarter profits were down 29% to $285 million. Excluding items, earnings at Canada's second-biggest phone company were little changed at $253 million. Revenue was up 5% to $2.45 billion on a 7% growth in wireless revenue and 13% growth in wireline data revenue. Its shares declined 36 cents to $34.68.

Oil and gas pipeline firm Enbridge Inc. reported Friday a fourth-quarter profit of $263.4 million, up 6% from the year-earlier quarter, with a boost from a stronger U.S. dollar. That was up from $248.6 million a year ago.

Full-year profits rose 89% to $1.3 billion and its shares rose 17 cents to $41.77.

International Forest Products Ltd. shares added a penny to $1.73 after it said its loss widened in the fourth quarter as lumber markets continued to be depressed. The company, known as Interfor, reported a net loss of $18.5 million in the fourth quarter compared to a net loss of $8.9 million last year.

Shares in flight training company CAE Inc. are halted pending news. Prime Minister Stephen Harper is scheduled to make an announcement at CAE in Montreal at 2 p.m. ET.

The Canadian dollar climbed 0.28 cents to 80.66 cents U.S.

BAYSTREET Of the 13 TSX sub-groups, 10 were in negative territory, gold the worst off, at 3.1%, followed by information technology, behind 2.4% and materials, off 1.8%.

The four groups that surged were led by metals and mining, up 1.7%, real-estate, adding 0.8% and utilities, ahead 0.3%.

The TSX Venture Exchange slid 0.06 points to 915.81 while the NASDAQ Canada index gave back 12.00 points, to 495.94

ON WALLSTREET

The Dow Jones industrials index was off 43.22 to 7,889.44. The Standard & Poor's 500 index tailed off 5.63 points to 829.56, while the NASDAQ composite index skidded 8.53 to 1,533.18

Stateside, one trader opined that investors appear to be "lightening up" and unloading their less desirable stocks before they head into a long weekend. U.S. markets are closed Monday for Presidents Day.

The March crude contract on the New York Mercantile Exchange gained 90 cents to $34.88 U.S. a barrel

The April bullion contract on the Nymex was down $12.40 to $936.80 U.S. an ounce