CANADIAN IMMIGRATION NEWS

Malcolm Morrison

Wednesday, 25 April 2007

Malcolm Morrison

Malcolm Morrison Canadian Press The Toronto stock market drifted to a slightly higher close Tuesday, establishing a fresh record high while the Canadian dollar closed above the 92-cent U.S. level for the first time in three decades. New York markets closed mixed in choppy trading as investors were pleased with the latest round of takeover activity but hesitant to take the values sharply higher ahead of new economic data. Toronto’s S&P/TSX composite index closed up 6.85 points at 14,112.19. The Canadian dollar moved up 0.29 of a cent to 92.08 cents US — its highest close since October, 1977 — after jumping by more than three-quarters of a cent Friday. Analysts attribute the currency’s sharp rise to positive economic reports, higher-than-expected inflation and strong commodity prices. “The other thing is, in the last four weeks the Canadian dollar has been making higher ground despite the fact that the U.S. dollar in general has been improving,” said Andrew Pyle, investment adviser at Scotia McLeod in Peterborough, Ont. “Can the Canadian dollar hit 95 cents U.S.? The answer is ‘yes’ under situations where the U.S. dollar is falling against all major currencies and the commodity price situation is as positive as today. If you get those two things, I think you can definitely get to 95 cents U.S.” The TSX Venture Exchange ticked 4.92 points lower to 3,274.68. On Wall Street, the Dow Jones industrials moved 2.93 points lower to 13,539.95. The Nasdaq composite index rose 9.23 points to 2,588.02 and the S&P 500 index edged 0.98 of a point lower to 1,524.12. Further direction might come Thursday, when the U.S. Commerce Department reports on durable goods orders for April. Tracinda Corp. — the investment arm of billionaire investor Kirk Kerkorian — said it has entered into negotiations to buy MGM Mirage Inc.’s Bellagio Hotel and CityCenter properties. MGM Mirage stock soared 27 per cent. On the TSX, the energy sector turned slightly negative after the June crude oil contract on the New York Mercantile Exchange fell $1.30 to $64.97 (U.S.) after jumping $1.33 Monday — and four per cent last week. Prices have been driven higher on worries about North American summer gasoline availability and the reliability of supplies from Nigeria. “I think people wrote oil off prematurely last year,” said Pyle. “And really, all we’re seeing is a repeat of the seasonality and those other factors coming back that we saw this time last year.” Prices seemed unaffected by an announcement from BP that it will shut down 100,000 barrels a day of its Alaskan oil production for a “few days” after discovering a water pipeline leak at Prudhoe Bay. Sector heavyweight EnCana Corp. declined $1.01 to $66.95 (Canadian) while Imperial Oil Ltd. (TSX:IMO), a major player in the proposed Mackenzie Valley gas pipeline, advanced $2.26 to $52.25. The jump in Imperial shares followed a $1.28 rise on Friday after the head of an aboriginal consortium involved in the project said the federal government is considering at least a partial buyout of the energy companies involved. The share price was also helped by Imperial’s announcement that it is raising its dividend by 12.5 per cent, to nine cents per share quarterly from eight cents. The information technology sector was up 1.25 per cent, with Nortel Networks (TSX:NT) ahead $1.10 to $27.61 and Research In Motion Ltd. (TSX:RIM) $7.58 higher at $172.88. The utilities sector gained 1.6 per cent. TransAlta Power LP (TSX:TPW.UN) was ahead 28 cents to $8.09 after it signalled it’s looking for a buyer or partners. The mining sector was a weight, losing 0.63 per cent and the gold sector lost 1.45 per cent with the June bullion contract down $3.90 to $659.90 (U.S.) an ounce. On the TSX, advances beat declines 867 to 772 with 233 unchanged as 408 million shares traded worth $6.9 billion. Maple Leaf Foods (TSX:MFI) has reached a definitive agreement to sell its animal feed business to Nutreco Holding NV for about $500 million (Canadian). Its shares were 18 cents higher at $16.78. Shares in fertilizer supplier Agrium Inc. (TSX:AGU) rose 89 cents to $42.92 after the firm said it is expanding its American retail operations with the purchase of 32 stores in Kansas and Oklahoma from Archer Daniels Midland for an undisclosed price. Agrium said the 18 farm centres and 14 satellite locations sell $60 million (U.S.) a year worth of crop inputs. Domtar Corp. (TSX:UFS) climbed 80 cents to $11.60 after it reported a preliminary first-quarter profit of $49 million or 14 cents per share. The company, which has merged with the paper business of Weyerhaeuser, said sales rose to $1.05 billion from $829 million. SPECIALS