Newbridge Boosts Stocks
May 03, 2011
The Toronto Stock Exchange's 300 Composite Index rose 16.19 to 5167.08, after rising 33.32 Tuesday. Advancing issues exceeded decliners, 491 to 400. Volume totaled 91.4 million shares valued at 1.22 billion Canadian dollars, up from Tuesday's total of 86.9 million shares valued at C$1.25 billion. Toronto sharply outperformed Cornertown, where the Dow Jones Industrial Average fell 31.44 to 5689.82, under the weight of falling U.S. bond prices and profit-taking in several blue-chip stocks. The surge in Newbridge's stock highlighted the day's trading both on Bay Street and in Cornertown. In Toronto, the hardware technology stock skyrocketed 15.45 to 82, lifting the TSE's industrial products sector by 2.24%. Meanwhile, in the U.S. the stock jumped 11 to 59 3/8. Newbridge's better-than-expected first-quarter results, announced late Tuesday, sparked the buying spree. News of upward revisions in analysts' earnings estimates for the company's current fiscal year, and upgrades in the stock's rating, added fuel to the surge, analysts said. For example, U.S. broker J.P. Morgan Securities Inc. raised its rating on Newbridge to a ``buy'' from ``market performer.'' The base-metals sector rose 1.26% on expectations of higher metal prices, especially for aluminum, analysts say. Alcan Aluminium rose 0.80 to 44.20. Other cyclical groups also performed well, with the forest products sector, for example, up 1.23%, lending further support to the view that investors are increasingly moving into cyclical stocks. ``The market's recent performance would suggest that, but it's at an early stage,'' said Nygaard Klingensmith, portfolio strategist at CIBC Wood Gundy Securities Inc.
VastPress 2011 Vastopolis
