Canada stocks took its gains for the last two days to nearly 200
points in closing 80 points higher Tuesday, boosted by more good
economic data out of the U.S., which is Canada largest trading
partner. Today, the positive data came in the shape of inflation
and housing figures. Investors and traders appear to be settled on
the idea that the Fed is poised to reduce its monetary stimulus
program, with an expectation that will start around September.
But gains were capped by some profit taking in Bombardier
(BBD-B.TO), which fell 3% with nearly three times the amount of
shares moving as the next more active.
All sectors but Metals & Mining were higher. It dropped
around 1.1% while Info Tech was the biggest gainer in percentage
terms, up 1.6%.
Bombardier today unveiled a number of rail and plane orders,
including a US$2 billion order from German's Deutsche Bahn to
supply up to 450 electric locomotives by the year 2020.
Bombardier Deutsche Bahn AG have signed a frame contract for the
delivery of electric locomotives. The total potential contract
value is up to 1.5 billion euro (US$2 billion) and includes options
for the call-off of up to 450 locomotives by the year 2020. The
first call-off of 110 locomotives for DB Schenker Rail and 20 for
DB Regio was exercised on June 17, 2013. Based on the list price,
the value of 130 locomotives would be 430 million euro (US$573
million). The frame agreement allows for numerous variations and
In addition, VistaJet has placed firm orders for 20 Challenger
350 jets and options for an additional 20 of the jets. The
transaction for the firm aircraft order is valued at approximately
US$518 million. If all the options are exercised, the total value
will be approximately US$1.035 billion. Deliveries for the aircraft
will begin in mid-2014.
Bombardier's Aerospace arm also announced that that
Seattle-based Horizon Air has signed a firm contract to acquire
three 76-seat Bombardier Q400 NextGen turboprop airliners. The
contract is valued at approximately US$98 million.
The company also received firm orders for 12 Global 8000
business jets from an undisclosed customer in a transaction valued
at approximately US$804 million.
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