Business
Rally takes break
Rally takes break
About this update from Sherritt International Corporation
[{"type":"text","content":"\nRally takes break\n\nIBM, Sun deal casts shadow\n Apr. 6, 2009 (Baystreet.ca) -- 04:42 pm EST\nFresh worries about the financial sector and some nervousness ahead of the start of the first-quarter earnings season persuaded investors to push the "pause button Monday on a four-week old rally North American stock markets had enjoyed.Toronto's S&P/TSX composite index climbed off its lows for the day, but still finished off by 49.59 points to 9.016.17The rally which started March 10, initially on good news from the American financial sector and bolstered since then by a string of positive economic data, had sent the TSX up 20% while the Dow is up about 22.5% since both hit multi-year lows on March 9.The TSX was off early lows in large part because of Research In Motion Ltd. Its shares jumped $5.88 or 8% to $78.68 after soaring 19% on Friday on a well-received earnings report and outlook.The financial sector eased after an analyst at Calyon Securities gave an underweight rating to U.S. banks. Mike Mayo cited "the ongoing consequences of increased risk taking by banks" and added that loan losses to total loans should increase to levels that top the Great Depression. TD Bank dropped 77 cents to $45.81 and CIBC was down cents 57 cents to $48.30.The TSX energy sector fell as oil prices retreated. EnCana Corp. lost 85 cents to $54.17 and Suncor Inc. gave back 32 cents to $29.47.The gold sector was down as Barrick Gold Corp. faded $1.45 to $35.86.The base metals sector dipped, with Sherritt International down 18 cents to $3.29.Shares in Teck Cominco Ltd. moved up one cent to $8.46 after it announced it has sold an interest in the gold production at its Andacollo mine in Chile to Royal Gold. The Vancouver-based mining giant said the deal is valued at $300 million U.S.Sources told the Globe and Mail that the deal is one of several moves the company plans take in order to reduce its huge debt burden arising from its $14-billion acquisition of Fording Canadian Coal Trust last year.Canadian investors also took in another deal gone bad. The takeover of Allen-Vanguard Corp. by Tailwind Financial in an all-stock deal worth $41.6 million has fallen through. The Ottawa-based maker of bomb disposal equipment and other military hardware said Monday another deal to take the company private is being considered. WestJet Airlines Ltd. ...