TSX May Dip At Open Amid Falling Commodities
Bay Street stocks are poised for a lower opening Friday as commodities tumbled on China rate hike concerns. Cues from the global equity markets were also discouraging with most Asian market ending lower, with China's composite index shedding over 5%, and European stocks lingering in the red.
The price of copper fell from a record high and oil pulled back from its 2-year peak as China may attempt to curb inflation by further tightening its monetary policy. Meanwhile, leaders from the G20 nations have failed to arrive at a consensus about trade and currency manipulation.
On Thursday, the S&P/TSX Composite Index edged down 7.90 points or 0.06% to 12,934.74.The price ofcrude oil moved back from its 2-year peak amid speculation that China will resort to further monetary tightening measures to curb inflation. Crude for December was down $1.50 to $86.31 a barrel.
The price of gold slipped below the $1,400-mark, with gold for December shedding $15.0 to $1,388.30 an ounce.
In corporate news from Canada, gold-focused royalty company Franco-Nevada reported higher third quarter net income of $18.0 million or $0.16 per share compared to $12.3 million or $0.11 per share in the previous year. On an adjusted basis, net income was $14.8 million or $0.13 per share, compared to $7.3 million or $0.07 per share last year. Analyst were expecting the company to report earnings of $0.12 per share for the quarter.
Fertilizer company Migao Corp Com NPV reported a decline in second quarter net income at $8.3 million or $0.16 per share from $9.6 million or $$0.21 per share in the year-ago period.
Renewable energy company Algonquin Power & Utilities reported lower third quarter profit of C$1.5 million or C$0.02 per share from C$13.1 million or C$0.17 per share for the third quarter of prior year. On an adjusted basis, net earnings fell to C$0.9 million or C$0.01 per share from C$7.2 million or C$0.09 per share last year.
Retail property operator Scott's Real Estate Inv Trust reported a wider third quarter net loss of $458,000 or $0.065 per share compared with a net loss of $156,000 or $0.031 per share a year ago.
Real estate properties company MI Developments reported lower third quarter net income of $8.2 million or $0.18 per share, compared to $28.0 million or $0.60 per share for the year-ago quarter. The company declared a dividend of $0.10 per share on its Class A subordinate voting shares and Class B shares.
Packaging products company Cascades Inc. reported lower third-quarter net earnings of C$30 million or C$0.31 per share compared to C$34 million or C$0.35 per share in the previous year. The company declared a quarterly dividend of $0.04 per share.
Broadcasting technology services provider Miranda Technologies reported third-quarter net income of C$6.63 million or C$0.30 per share, up from C$1.07 million or C$0.05 per share last year.
Wireless broadband communications services provider TeraGo Inc. reported a narrower third quarter net loss of C$1.45 million or C$0.13 per share compared to a net loss of C$1.72 million or C$0.15 per share last year.
Stevia extracts supplier GLG Life Tech Corp. posted third quarter net income of C$1.8 million or C$0.07 per share, compared to C$1.4 million or C$0.07 per share in the same period last year. Analysts expected the company to report earnings of $0.03 per share. For the fiscal year 2010, the company guides revenues in the range of C$65 million to C$70 million.
Wood products company Stella-Jones said it third-quarter net earnings grew to C$12.22 million or C$0.77 per share from C$8.32 million or C$0.65 per share a year ago. The acquisition of Tangent Rail Corp., effective April 1, 2010, contributed sales of around C$41.2 million.