Friday, November 13, 2009 4:58 PM
At the close: Weekly gains
Simon Avery
North American stock markets closed Friday up on the week, as investors took heart in the sagging U.S. dollar and in news that the world’s main central banks plan to continue to keep rates low.
Toronto’s S&P/TSX climbed 46.92 points to 11407.68 with gold stocks leading the charge. Iamgold rose 8 per cent to $19.40, New Gold gained 7 per cent to $4.35. Gammon Gold added 6 per cent to $10.96.
The price of bullion was up $10.10 (U.S.) to $1116.70 an ounce. Crude oil for December delivery slipped 59 cents to $76.35 a barrel. The value of the U.S. dollar decreased next to the loonie, the euro and the yen. Canada’s currency traded last up 7 tenths of a cent at 95.4 cents.
On the Toronto exchange, Suncor and UTS Energy remained among the most actives, after Suncor said it plans to expand its oil sands production by between 10 and 12 per cent a year over the next decade, but declined to make any commitment on the proposed Fort Hills oil sands mine, where UTS has a major presence.
UTS lost 2 per cent to trade at $2.13 (Canadian). Suncor shares gained 1 per cent to $36.89, aided by a new “buy” recommendation from Bank of America. The bank also put “buy” ratings on Talisman Energy, Nexen and Petrominerales.
Shares of Research In Motion declined 68 cents to $65.95 after Dell said it will enter the smart phone market with a device running Google’s Android software platform.
Canadian Tire was one of the biggest losers of the day, its shares falling 4 per cent, to $56.12, after the retailer reported Thursday that same-store sales decreased 4 per cent in the last quarter. The company said that its financial services business was hurt by a steep increase in loan losses.
Canadian conglomerate Power Corp. also saw its shares decline on quarterly results that fell short of expectations. They slid 3 per cent to $26.33. Subsidiary Power Financial also declined 3 per cent to $27.65.
In the U.S., consumer stocks drove markets higher, even after news that consumer confidence unexpectedly fell last month. The Dow Jones industrial average was up 733 points to 10270.47. It was bolstered by a 5 per cent rise in shares of Walt Disney, which posted better than anticipated quarterly results after the close on Thursday.
The broader S&P 500 index gain 6.24 points to 1093.48, led by the Abercrombie & Fitch, which reported that its quarterly profit declined less than analysts had forecast. The retailer’s stock rose 4 per cent.
Shares of J.C. Penny also jumped 6 per cent, after the No. 3 department store chain in the U.S. raised its financial forecast for the year.
The Reuters/University of Michigan preliminary index of consumer sentiment decreased to 66 from 70.6 in October, just as U.S. unemployment hit a 26 year high. The index had been expected to rise to 71, according to the median estimate in a Bloomberg survey.
Stock markets also climbed Friday in Europe, after fresh data showed that the 16-country euro zone emerged from the recession last quarter. Asian markets closed the week mixed, with China up, but Japan and Korea down.
