Mar. 15, 2010 (Baystreet.ca) --
Canadian investors are likely to remain cautious Monday amid falling commodity prices and after the main index moved past a crucial 12,000-mark for the first time in 2010.
The S&P/TSX composite index stumbled 0.62 points out of the starting blocks to 12,013.20.
The prices of commodities eased on renewed concerns that China will tighten its monetary policy to cool-off its economic growth. Meanwhile, Morgan Stanley said that it expects "multiple" increases in bank reserve ratio in China.
In corporate news, drilling and well services contractor Ensign Energy Services reported a drop in its fourth-quarter funds from operation to $0.38 per share from $0.71 per share in the year-ago period. Nonetheless, the company increased its quarterly dividend by 3% to $0.0875 per common share from $0.0850 per common share in the third quarter of 2009.
Minerals explorer WGI Heavy Minerals swung to profit in the fourth quarter reporting earnings of $0.01 per share, compared to a loss of $0.15 per share in the prior-year quarter.
Natural resources company Georox Resources reported a narrower net loss of $0.04 per share for the full year 2009, compared to a loss of $0.11 per share in the prior year quarter.
Exploration and mine development company Exeter Resource said it will spin-out its Argentine assets into Extorre Gold Mines Ltd.
Gold mining company Kirkland Lake Gold Inc. reported a wider third-quarter loss of $0.13 per share, compared to a loss of $0.08 per share last year.
Software developer CounterPath Corp. reported a net loss of $0.06 per share for the third quarter, compared to a net loss of $0.08 per share for the year-ago quarter.
Industrial and commercial construction company Bird Construction Income Fund reported net income of $0.93 per unit for the fourth quarter, compared to $1.04 per unit in the prior year quarter and approved regular cash distributions of $0.15 per unit each for March and April 2010.
In brokerage updates, Raymond James hiked First Uranium rating to an "Outperform" from a "Market Perform". RBC resumed coverage of Afrium Inc. with an "Outperform" rating and trimmed Provident Energy Trust rating to an "Underperform" from a "Sector Perform".
In economic news, Statistics Canada said new motor vehicle sales were unchanged at 128,426 units in January. Sales of new trucks were up by 2.4% to 65,726 units, but sales of North-American built passengers cars dipped by 8.2% to 34,234 units.
The Canadian dollar was down 0.17 cents to 98.05 cents U.S.
ON BAYSTREET
Of the 14 TSX subgroups, nine were negative to begin the day and the week. Global base metals vied with the metals and mining group for biggest loss, at 0.8% each. Energy stocks sank 0.6%.
The five gainers were led by information technology, advancing 0.4%, utilities, which grew 0.3% and real-estate, 0.2% stronger.
The TSX Venture Exchange pointed upward 1.44 points to 1,569.73, while the Nasdaq Canada index surged 10.41 points to 817.87.
ON WALLSTREET
In New York, stocks were set for a flatstart Monday, as investors expressed caution after pushing Wall Street to 18-month highs.
The Dow Jones industrial average began the week on the plus side, but by 8.62 points at 10,633.31. The S&P 500 index slipped 0.22 points to 1,149.77, and the Nasdaq composite moved backward 1.34 points to 2,367.66.
Wall Street may be set for a volatile week as investors mull recent gains that have lifted the Nasdaq and S&P 500 to their highest level in 18 months.
The Federal Reserve's decision on interest rates, due Tuesday, will help to dictate the direction of the market for the remainder of the week, said Hoffman.
Since bottoming at a six-year low on March 9 of last year, the Nasdaq has gained 87%. Since bottoming at a 12-year low on the same day, the S&P 500 has gained 70% and the Dow has gained 62%.
Investors lost confidence Monday after Moody's Investor Services said the United States is closer to losing its AAA credit rating.
Investors will have taken in a reading on factory output by the time the opening bell had sounded. A survey on manufacturing in New York state is also on tap.
Google is in the spotlight Monday following news reports saying that the search giant is moving closer to shutting its Web site in China.
Back in January, Google said it may leave China and shut its site there, Google.cn, citing censorship rules and a targeted cyber attack on its network infrastructure.
Google shares were nearly 2% lower in pre-market trading.
Troubled insurer AIG said Monday it would retain $21 million U.S. in bonus payments to former employees. AIG is also slated to pay out $46 million U.S. to current and former employees of the Financial Products division on Monday.
AIG shares gained 3% in premarket trading.
Philips-Van Heusen, the owner of Calvin Klein, reached a deal to buy Tommy Hilfiger for about $3 billion U.S. in cash and stock.
U.S. Senate Banking Chief Christopher Dodd is expected to release a draft bill of financial rules aimed at preventing future financial crises.
Meanwhile, safe-haven Treasurys were mostly higher with the benchmark 10-year yield at 3.69%. Yields and prices move in opposite direction. Investors often seek out the perceived safety of Treasurys in times of economic uncertainty because they are backed by the U.S. government.
The price of a barrel of oil slid 88 cents to $80.36 U.S.
Gold prices picked up two dollars to $1,104 U.S.
