Mar. 5, 2009 (Baystreet.ca) --
10:29 am EST
Stock markets were lower Thursday morning amid an indication that China won't embark on a fresh stimulus program after all while fresh concerns were raised about the future of General Motors Corp.
Toronto's S&P/TSX composite index slid 61.62 points in the first half-hour to 7,753.12, following a triple-digit advance Wednesday, on hopes that China would use the start of the National People's Congress' annual session to announce new economic measures, in addition to the promised spending of $585 billion U.S. outlined in November.
But there was a sense of letdown after Chinese Premier Wen Jiabao said Thursday the government would help the world's third-largest economy grow by 8% this year, but stopped short of promising new measures.
The TSX energy sector lost amid falling oil prices and earnings reports from some of the oilpatch's heavyweights - while another company filed for creditor protection.
Natural gas explorer and producer Canadian Superior Energy Inc. says it has filed an application with the Court of Queen's Bench of Alberta for protection from creditors under the federal Companies' Creditors Arrangement Act. Its shares plunged 16 cents to 33 cents.
Canadian Natural Resources Ltd. shares were down a penny to $38.53 after it said Thursday it was reducing its 2009 capital spending budget by $800 million in anticipation of a turbulent year marked by low commodity prices. The Calgary-based oil and gas company recorded net earnings of $1.8 billion during the fourth quarter, up from year-earlier profits of $798 million.
Canadian Natural also said it was raising its annual dividend by 5% to 42 cents per share.
Shares in Talisman Energy Inc. drifted nine cents lower to $11.39 after it said Thursday that net earnings for the latest quarter came in at $1.2 billion, up sharply from year-earlier profits of $656 million.
Talisman said it benefited from the high oil prices that prevailed throughout much of the year, reporting a 69% surge in 2008 profits to $3.5 billion from year-earlier net earnings of $2 billion.
Peyto Energy Trust units moved up eight cents to $6.93 as quarterly profits were $50.7 million, a 31% decrease from a year earlier.
In news concerning base metals stocks, Mongolia has submitted a draft agreement to allow Canadian mining company Ivanhoe Mines and Rio Tinto to mine at one of the country's largest gold and copper deposits.
Ivanhoe has been trying since 2001 to develop the potentially huge Oyu Tolgoi mine, but it has been held up by disagreements over how to share the wealth in a country suffering from widespread poverty and corruption.
It is not known how long it will take for final approval and Ivanhoe shares were up 13 cents to $5.88.
The financial sector was down after undergoing a battering earlier in the week in the wake of a $62-billion U.S. loss at insurer American International Group, a U.S. corporate record.
Royal Bank declined 48 cents to $30.10.
Canadian Western Bank reported Thursday a first-quarter profit of $25.6 million, down 1% from a year-earlier $25.9 million, as the fallout of the economic downturn continued to pressure its earnings. Its shares gave back 21 cents to $10.39.
The Canadian dollar backtracked half a cent, to 77.95 cents U.S.
BAYSTREET
Of the 13 TSX sub-groups, 11 were lower, weighed down by a 2.9% plunge by financials, a 2.7% slump for health-care stocks, and a 2% retreat by industrials.
Gold stocks proved the better-off of the two advancing groups, ahead 2.6%. Materials were up 1.9%.
The TSX Venture Exchange was up 0.74 points to 831.69, while the Nasdaq Canada index fell 9.85 points to 398.51
ON WALLSTREET
The Dow Jones Industrials index gave back 100.20 points in the early going, to 6,775.46 after a sizable gain Wednesday
The Standard & Poor's 500 index was off 10.27 points to 702.60, while the NASDAQ composite index listed downward 15.10 points to 1,338.64
General Motors' annual report said its auditors have raised ``substantial doubt" about the troubled automaker's ability to continue operations, and the company said it may have to seek bankruptcy protection if it can't execute a huge restructuring plan. GM shares dropped 23 cents to $1.97 U.S.
On the economic front, there was some good news a day before the U.S. releases employment figures for February.
The U.S. Labor Department said Thursday new unemployment claims fell to 639,000. Economists had anticipated new claims to decrease to 650,000.
Investors are braced for a report that will show the American economy shed 640,000 jobs last month.
There was also February retail data from the U.S. to chew over. The figures weren't as dismal as in January, and Wal-Mart's gains far outpaced expectations.
Wal-Mart also announced it is hiking its annual dividend 15% to $1.09 U.S. a share and its shares ran ahead $2.26 to $50.75 U.S.
Mall-based clothing chains including Wet Seal Inc., Stage Stores Inc. and American Eagle Outfitters Inc. continue to struggle with a sales slump, but the declines weren't as steep as analysts expected.
The April crude contract on the New York Mercantile Exchange fell $1.10 to $44.28 U.S. a barrel.
Gold prices hiked eight dollars to $914.70 U.S. an ounce.