Business
Markets in ¿wait-and-see' mode
Markets in ¿wait-and-see' mode
About this update from Teck Resources Limited Class A
[{"type":"text","content":"\nMarkets in ‘wait-and-see' mode\n\nMerger, GM news factor in\n Mar. 9, 2009 (Baystreet.ca) -- 12:00 pm EST\nInitial enthusiasm cooled for equity markets Monday, as investors digested hopeful news from the auto sector, and a prospective merger between drugmakers Merck and Schering-Plough. The Toronto stock market started off the week up with oil prices improving to the $45 U.S. a barrel level as investors anticipated another OPEC production cut will shrink global supplies.Toronto's S&P/TSX composite index was off its highs for the day, but was still 39.15 in the minutes before noon to 7,630.62GM of Canada Ltd. and the Canadian Auto Workers announced yesterday they had negotiated significant concessions affecting employees and retirees that will freeze their wages and pensions, increase personal expenses for health care benefits, reduce employee holidays and eliminate annual bonuses.The cuts, which could mean hundreds of millions of dollars in additional savings for GM until the fall of 2012, are critical for the company's survival plan and to qualify for loans from the federal and provincial governments. It could help in making GM eligible for $6 billion in government aid. On the TSX, CIBC declined 46 cents to $37.04 while Manulife Financial shares fell 21 cents to $9.44.The TSX energy sector rose as EnCana Corp. gained $1.39 to $49.90 and Suncor Inc. ran up $2.11 to $29.46.Drilling and well-servicing equipment maker Wenzel Downhole Tools Ltd. reported 2008 profits of $12.4 million, up from 2007 net earnings of $2.8 million. The Calgary-based company reported full-year revenue of $71.8 million compared to $54.2 million the year before and its shares surged 10 cents to 71 cents.The base metals sector moved up with Teck Cominco Ltd. up 15 cents to $4.05 and Ivanhoe Mines gained 29 cents to $5.56.The gold sector was down as Barrick Gold Corp. declined 89 cents to $36.07.Shares in fertilizer producer Agrium Inc. gained $1.02 to $41.30 after CF Industries rejected the Canadian company's unsolicited bid worth $3.6 billion U.S. in cash and stock, calling the offer "grossly inadequate" and vowing to pursue a business combination with U.S. rival Terra Industries Inc.Rio Tinto Group, the world's third largest mining company, isn't planning to slow development of the $3-billion U.S. Oyu Tolgoi copper-gold deposit in Mo...