Metals, energy weigh on TSX
May 5, 2010 (Baystreet.ca) --
Bay Street stocks took a pounding Wednesday amid falling commodities prices.
The S&P/TSX composite index slumped 239.90 points, or 2%, soon after the opening bell to 11,790.96
Also, speculation that Greece bailout may have to be extended to a few other nations in the region may weigh on the sentiment, dragging stocks further down.
However, value buying at lower levels might lend support to stocks. Traders will also react to earnings reports by major Canadian companies, including Agrium and Dundee Precious Metals.
In corporate news, agricultural product company Agrium Inc. said its first-quarter net loss narrowed significantly to $0.04 per share from $0.38 per share a year ago. However excluding the two special items, net earnings were $0.41 per share for the quarter. Analysts were expecting the company to record earnings per share of $0.33 for the quarter.
Insurance services provider Intact Financial swung to profit in first-quarter, recording net income of $1.01 per share compared with a loss of $0.30 per share in the prior year period. The company declared a quarterly dividend of $0.34 per share.
Crude oil and natural gas company Talisman Energy reported lower first quarter net income of $0.22 per share, compared to $0.45 per share in the same quarter a year earlier.
Petroleum and natural gas focused trust Penn West Energy Trust swing to profit in first-quarter, reporting net income of $0.18 per unit compared with a net loss of $0.25 per unit in the prior-year period.
Crude oil and natural gas distributor Enbridge Inc. reported lower first-quarter net earnings of $0.92 per share, compared to $1.53 per share in the prior year period. The company declared quarterly dividends of $0.425 per common share.
International mining company Dundee Precious Metals reported a significantly wider net loss of $48.3 million in its first quarter, compared to a net loss of $4.9 million in the year-ago period. The company added the net loss includes net impairment provisions of $50.6 million related to the proposed Bulgarian metals processing facility in Chelopech.
Gold producer Kinross Gold reported improved first-quarter net income of $0.16 per share, compared to net income of $0.11 per share in the same quarter last year. Analysts were expecting the company to post net income of $0.16 per share for the quarter.
Meanwhile, Red Back Mining said it will sell 24 million shares to Kinross for $25 each in a private placement. On Tuesday, RBI stock closed at $24.46 a share.
Gold producer Yamana Gold increases its dividend to an annualized $0.06 per share, or $0.015 per share per quarter, representing a 50% increase over the prior annualized dividend of $0.04 per share.
Yesterday, the company reported lower net income of $0.11 per share compared to $0.12 per share last year, despite 62% growth in revenues. The company attributed this to lower foreign exchange gains as well as unrealized losses on derivatives. Analysts expected the company to earn $0.11 per share for the quarter.
Specialty pharmaceutical company Labopharm Inc. reported wider first-quarter net loss of $8.26 million compared to $7.97 million in the previous year. However, net loss per share for the quarter was $0.13, narrower than $0.14per share last year.
Non-alcoholic beverage company Cott Corp. said its first-quarter net income declined to $0.14 per share from $0.28 per share last year. Analysts were expecting the company to report $0.12 per share for the quarter.
Manufacturer of flight-critical parts Northstar Aerospace said is subsidiary Northstar Aerospace (Canada), Inc. received a purchase contract from The Boeing Company for $53 million, spread over three years.
Music distribution company Fluid Music Canada said it would purchase all of the issued and outstanding shares and debt of Mood Media Group SA in consideration for EUR 160 million or about $206 million.
Television broadcast industry services provider Miranda Technologies slipped into the red in the first quarter, reporting net loss of $0.07 per share compared with a profit of $0.05 in the prior-year period.
The Canadian dollar plummeted another 0.76 cents to 96.75 cents U.S.
ON BAYSTREET
All 14 TSX subgroups were lower at the outset, metals and mining most so, at 3.9%, while energy stocks lost 3.3% and materials were down 2.4%.
The TSX Venture Exchange dropped 39.21 points to 1,583.20, while the Nasdaq Canada index backpedaled 12.67 points to 750.77.
ON WALLSTREET
In New York, stocks resumed their plunge at the open Wednesday, as fears of debt contagion in Europe continued to weigh on investors, although the losses were expected to be less severe than the previous session.
The Dow Jones industrial average fell back 80.49 points to 10,846.28
The S&P 500 index slipped 12.63 points to 1,160.97. The Nasdaq composite index stumbled 34.96 points to 2,389.29.
Stock markets around the world sank Tuesday amid rumours that Spain was negotiating a bailout from the International Monetary Fund. On Wall Street, the S&P dived 2.4% and the blue-chip Dow tumbled 2%.
The rumours were denied Tuesday by Spanish officials and the IMF, which helped ease some worries Wednesday that a fiscal contagion was spreading in Europe.
Time Warner reported its highest quarterly profit in company history, easily beating Wall Street's forecasts.
The New York-based parent company of CNNMoney.com and Fortune said its net income rose to $725 million U.S., or 62 cents U.S. per share, up 10% from a year earlier. Analysts polled by Thomson Reuters, forecasted earnings of 48 cents U.S. per share.
Shares of biotech firm InterMune plunged 80% in after-hours trading Tuesday after the Food and Drug Administration rejected the firm's application for a lung drug.
Economically speaking, the latest readings on jobs may offer investors a distraction from the debt woes in Europe.
Outplacement firm Challenger released a report on layoffs this morning, followed by a reading on private-sector payrolls.
Treasury prices shot up sharply, lowering the yield on the 10-year note to 3.50% from Tuesday's 3.61%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil fell $3.04 to $79.74 U.S.
Gold prices sank $10 to $1,160 U.S. an ounce.