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18/08/08

Toronto stocks rise on bargain-hunting in resources

TORONTO (Reuters) - The Toronto Stock Exchange's main index rose on Monday as higher commodity prices encouraged bargain-hunting in resource shares after a big drop on Friday. The bounce from last week's six-month low signals further volatility, said Paul Harris, portfolio manager at Avenue Investment Management. "The trend for Canada, at least, is what's going on with commodities," he said.

Q2 foreign buys of Canada securities hit record

(Reuters) - Foreign purchases of Canadian securities hit a record C$27.64 billion ($26.08 billion) in the second quarter, Statistics Canada said on Monday. Second quarter bond purchases of C$19.56 billion were the highest since the fourth quarter of 2001's C$23.76 billion. For June, foreigners bought C$7.25 billion of Canadian securities. Canadians sold C$9.50 billion of foreign securities in June in the face of lackluster global equity markets and a deteriorating U.S. credit market, the government agency said. ($1=$1.06 Canadian)

Crude falls below $113 as storm threat subsides

London (Reuters) - Oil fell more than a dollar to below $113 a barrel on Monday as a tropical storm looked set to avoid major oil and gas infrastructure in the U.S. Gulf of Mexico. U.S. crude fell $1.60 to $112.17 a barrel by 11:11 a.m. EDT. It settled down $1.24 at $113.77l on Friday, after dipping to $111.34, the lowest since May 1.

Corel says private-equity firm pulls buyout offer

TORONTO (Reuters) - Consumer software developer Corel Corp said on Monday its majority shareholder has withdrawn its offer to buy out the rest of the company. Corel said that Corel Holdings LP, which already owns 69 percent of the company and is controlled by private-equity firm Vector Capital Corp, pulled its bid to "facilitate pursuit by Corel of alternatives for maximizing value for all ... shareholders."

Analysts expecting large loss from Lehman: report

NEW YORK (Reuters) - Some analysts are girding for a third-quarter loss of $1.8 billion or more from U.S. investment bank Lehman Brothers Holdings Inc , instead of the modest profit they had previously expected, the Wall Street Journal reported on Sunday. If losses keep piling up, Lehman could need to raise additional capital beyond the $6 billion it got in June, the paper said.

Canadian dollar flat ahead of key inflation data

TORONTO (Reuters) - The Canadian dollar was flat versus the U.S. dollar on Monday as higher commodity prices were not enough to trigger a sustained rally given the slate of key data due out later this week. At 8:35 a.m. (1235 GMT), the Canadian unit was at C$1.0587 to the U.S. dollar, or 94.46 U.S. cents, up from C$1.0590 to the U.S. dollar, or 94.43 U.S. cents, at Friday's close.

Oil's fall, dollar's rise key to gains

NEW YORK (Reuters) - Bolstered by falling oil prices and a rising dollar, stocks could extend their modest gains this week, even in the face of still troubling consumer- and housing-related data. Oil's downward trend helped boost consumer spending slightly in the past month, with crude hitting a three-month low below $114 a barrel on Friday. But its path remains volatile, prompting some investors to remain cautious about the market.

Scotiabank could be investor safe haven: report

NEW YORK (Reuters) - Bank of Nova Scotia could offer a safe haven for investors because it is not afflicted with hard-to-value credit assets and huge subprime write-downs, Barron's reported in its August 18 edition. "It's a well-run bank with almost zero exposure in the U.S., a 4.2 percent dividend yield -- recently raised -- and is not widely followed by the Street," Barron's cited Matthew McCormick, a portfolio manager at Bahl & Gaynor Investment Counsel, as saying.

Flaherty says expects solid growth

OTTAWA (Reuters) - Canadian Finance Minister Jim Flaherty said on Friday he expects solid growth in the Canadian economy despite a contraction in May. "(We're) staying on our economic plan, looking for solid economic fundamentals, solid growth for the Canadian economy, none of the bubbles that we've seen in the U.S., particularly in the housing sector," Flaherty told reporters in televised comments.

Wal-Mart Canada workers obtain rare union contract

OTTAWA (Reuters) - Employees at a Wal-Mart Stores Inc. outlet in Canada won an arbitrator-imposed contract on Friday, becoming the giant retailer's only location in North America with a collective agreement in place. The contract, imposed after binding arbitration ended in June, affects only eight employees at Wal-Mart's tire and lube garage in Gatineau, Quebec, across the river from Ottawa.

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