Canada's main stock market, the Toronto Stock Exchange, showed
strong upward momentum over the second half of the day - it was
down around 20 points at midday - and closed up 45 points at
session highs Friday at the end of a week that saw the release of
some particularly strong earnings and operations updates from the
likes of Bombardier (BBD-B.TO).
But lower commodity prices and less exciting news from the likes
of Surge Energy Inc (SGY.TO) helped cap gains.
June gold futures fell Friday to settle at US$1,436.60 an ounce
on the Comex division of the New York Mercantile Exchange, down
1.9% on the week. July silver settled at $23.658 an ounce, down
1.5% on the week. Brent oil for June settlement eased 0.5% to
$103.91 a barrel.
Surge fell close to 3% with nearly 20 million shares traded
after it reported a first quarter 2013 net loss of $1.4 million, or
$0.02 per share, on revenues of $53.6 million. Funds from
operations totaled $25.2 million, or $0.35 per diluted share. In
the same period last year, the company reported a net income of
$2.7 million, or $0.04 per share, on revenues of $51.1 million.
Funds from operations totaled $24 million, or $0.33 per share.
This week, it also announced management changes, a private
placement and the sale of non-core assets.
But boosting the market was Bombardier, up more than 5% with 14
million shares traded, on continued positive sentiment for the
company after its result and CSeries update.
Credit Suisse said: "Q1 represented a solid operating
performance, with higher-than-expected Aerospace revenues combining
with better Transportation margins to yield an EPS of $0.08, which
would have beaten consensus by a penny were it not for a tax
headwind. While the quarter no doubt contributed to yesterday's
strong share outperformance, we think the more incremental positive
from yesterday's release was the affirmation of June's target for
CSeries first flight. We reiterate our Outperform rating and raise
our TP to $5.00 (from $4.75) ahead of the positive near-term
catalysts of the first flight and the Paris Air Show, which could
attract additional orders for the CSeries. Looking beyond first
flight, management said that it remains confident on its
"realistic" 12-month flight test schedule for the aircraft. Our
2013 EPS rises to $0.40 from $0.39 on higher Transport margin."
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