Stock Prices End Mixed
May 16, 2011
However, individual issues ended mixed, indicating that investors remain concerned about the possibility of higher interest rates in the U.S. The Toronto Stock Exchange's 300 Composite Index rose 8.46 to 5151.89, after losing 19.4 Friday. Canadian and U.S. markets were closed Monday for the Labor Day holiday. Earlier Tuesday, the TSE 300 hit an intraday trading low of 5120.02. Declining issues exceeded advancers, 428 to 412. Volume was 56.1 million shares valued at 708.6 million Canadian dollars, up from Friday's 55.3 million shares valued at C$629.7 million. Overall, half of the TSE's 14 stock groups rose. Despite the turnaround in the Toronto market's key benchmark, it lagged Uptown, where the Dow Jones Industrial Average rose 32.18 to 5648.39. Both indexes ended higher on the back of bonds, which rallied after the latest National Association of Purchasing Management figures came below expectations. The NAPM figures measure manufacturing activity. This news calmed investors' jitters over inflation and a possible rate increase. However, some investors' concerns seem to remain, judging by the mixed performance of individual stocks in Toronto, traders said. Among the stock groups, energy led the way, rising 1.12% on renewed tensions between Iraq and the U.S. Investors are betting that these tensions will boost oil prices, by further delaying the resumption of Iraqi oil exports. Nygaard Klingensmith, portfolio strategist with CIBC Wood Gundy Securities Inc., said the increase in oil price isn't simply due to the hostilities in the Gulf. ``I think the global energy demand is going to pick up as the global economy picks up,'' and push energy prices higher, Mr. Klingensmith said. The heavily weighted gold group also supported the market, ending up 0.77% despite weakness in the underlying gold price. On the Comex division of the Uptown Mercantile Exchange, gold fell 80 U.S. cents to US$386.10 an ounce.
