The resources heavy Toronto Stock Exchange on Friday just about
succeeded in making it four days of gains in a row, closing up 6
points after a small rally over the last two hours or so saw it
recover near 20 points. Some investors probably took positions or
sat on the sidelines ahead of the long holiday weekend in the
States. Volume on the TSX was 110 million.
Among sectors, most were up, with only Financials slightly lower
- maybe on some profit taking after strong gains Thursday as RBC
and TD banks both reported Q2 results that beat expectations. But
none of the sectors were either up or down by more than 0.5%.
settled US$3.30 lower at $1,291.70 an ounce, making for a modest
weekly loss as the U.S. dollar strengthened and investors took
positions before the long weekend in the States. Meanwhile, West
Texas Intermediate oil hit five week highs on lower U.S. crude
inventories. Brent was near $111 a barrel.
On the New York Mercantile Exchange, platinum futures for July
delivery dropped 1.4% to $1,472.80 an ounce, the biggest drop since
May 7, according to Bloomberg. Yesterday, the metal reached
$1,497.80, the highest since Sept. 9, it said. Bloomberg added that
representatives from the world's three biggest platinum producers
and the main union at their South African mines will continue pay
talks tomorrow in a bid to end a strike that has crippled output
for 18 weeks.
Perhaps reflecting this, Eastern Platinum (ELR.TO) was the most
active stock on the TSX, gaining 20% to near 52 week highs with
16.9 million shares traded.
Bombardier Inc (BBD-B.TO), which has lost more than 5% this week
and lost 2% today to $3.75 on volume of 13.2 million, is reeling
from a series of adverse news this week.
On Wednesday, Bombardier plunged 12% early in the session to hit
a week low of $3.69 after media reports that it was apparently
caught up in a blunder that has engulfed France's regional rail
network. British newspaper The Telegraph reported that French
national rail operator SNCF - which runs the TGV fast trains - has
miscalculated with its new generation of regional trains that are
too wide for 1,300 stations. Train platforms will have to be
"shaved" to stop carriages from getting stuck, the paper reported.
The faux pas was reported by a weekly French satirical newspaper,
Canard Enchaine. SNCF was slated to take delivery of new trains
from Alstom SA of France and Bombardier through 2016.
Also on Wednesday, Bloomberg reported that Bombardier's biggest
customer for the CSeries jet was considering whether to take the
planes after a change in airline strategy. However, Canadian Press
reported since then that CEO Bryan Redford, while reportedly
concerned about the slow rate of sales for the C-Series jet has no
plans to cancel its order with Bombardier. The planes are slated
for delivery in two years.
The latest news today is that Russia is apparently weighing
whether it should end its $3.4 billion deal with Bombardier to buy
Q400 turboprop planes to be built in a new assembly plant in
Russia, the country's industry minister said, according to a Globe
and Mail newspaper report.
To end a very bad week, Patrick Horan, principal at Agilith
Capital pronounced that Bombardier management have lost credibility
in the market place over the delays in launching its CSeries
program. Horan said momentum on the CSeries program is declining
every day and that is a "big issue" for them. "They are in a pickle
right now," he told BNN TV.