Market News May 15, 2007

Market closes for Tuesday, May 15, 2007:

Dow Jones 13,487.53 +103.96 or +0.77% YTD: +8.22%
S&P 500 1,514.14 +12.95 or +0.86% YTD: +6.76%
NASDAQ 2,547.42 +22.13 or +0.88% YTD: +5.47%
TSX COMP 14,025.03 +90.39 or +0.65% YTD: +8.65%
TSX VENT 3242.97 -29.66

Canadian dollar $Cdn $U.S.
BoC Closing rate
1.1039 0.9101

Previous BoC closing rate
1.0988 0.9101

Cdn. Dollar/Euro Spot Rate
1.492 0.6703

Gold AM PM
London Gold Fix (US)
$670.90 $667.75

Spot Crude Oil Future(US)
$62.55 -$0.62 or -0.98%

NEWS

Financial, telecom and energy stocks helped drive the Toronto stock market to another record close above the 14,000-mark Wednesday while New York markets shook off earlier losses to move higher as investors took in mixed housing data and a positive snapshot of manufacturing.

Toronto’s S&P/TSX composite index closed up 90.39 points to 14,025.03 after breaking through the milestone for the first time last Friday. But the market found it hard this week to exploit the breakthrough.

The latest gains have brought the TSX up about 8.5% for the year to date on higher commodity stocks and a wave of merger and acquisition activity.

“I think the market has been obviously exceptionally occupied with takeovers of this, that and the other thing. And people are sort of running around figuring what else is going to get taken over,” said John O’Connell, a portfolio manager at RBC Dominion Securities.

“And so the appetite for risk is very high – and that always is, generally speaking, a warning sign that investors should be cautious.”

The U.S. Commerce Department said construction of new homes rose 2.5% in April over March. However, housing construction was still 25.9% lower than a year ago.

And builders cut their requests for new construction permits by 8.9% in April – the sharpest drop since February 1990.
There was better news from the U.S. Federal Reserve. The central bank reported that industrial output rose by 0.7% in April, more than double the 0.3% gain that had been expected and in part reflected a rebound in manufacturing and an increase in output from utilities. In March, output fell 0.3%.

American markets found support from news about three high-profile investors: Warren Buffett’s Berkshire Hathaway is nearly doubling its stake in Johnson & Johnson, billionaire investor Eddie Lampert disclosed a stake in Citigroup worth US$800 million, and George Soros is more than doubling his investment in Microsoft.

The TSX financial sector moved up one per cent as TD Bank gained 85 cents to $70.90 and Sun Life Financial advanced 82 cents to $52.39.

But ING Canada Inc., the largest provider of property and casualty insurance in Canada, declined 86 cents to $48.70 after its first-quarter profit declined to $126.2 million from a year-earlier $185.9 million.

The telecom sector rose one per cent with Telus Corp. up 77 cents to $62.29 and Rogers Communications gaining $1.46 to $44.34.

The oil and gas sector started the day flat but moved up 0.75% even as oil prices dropped after the U.S. Department of Energy reported that gasoline supplies climbed for a second week, up 1.7 million barrels while crude supplies rose for a fourth-straight week, rising one million barrels.

The June crude contract on the New York Mercantile Exchange fell 62 cents to US$62.55 a barrel. EnCana Corp. gained $1.20 to $66.75 and Suncor Energy advanced $1.40 to $92.20.

The gold sector was the only noticeable drag on the TSX, down 0.85% as the June bullion contract on the Nymex fell $13 to US$661.50 an ounce. Kinross Gold Corp. fell 27 cents to $14.31.

On the TSX, declines beat advances 864 to 783 with 232 unchanged as 389 million shares traded worth $6.4 billion.
Meanwhile, Canadian businesses are set to cope with the second national railway strike this year.
Workers who maintain tracks and bridges at Canadian Pacific Railway Ltd. have walked off the job and CP said it will deploy 1,300 management employees to do their work. CP Rail shares were up $1.90 at $75.82.

Magna International Corp. was up 76 cents to $89.36 after the auto parts company confirmed the pending loss of its lucrative BMW X3 sport utility vehicle production contract in Austria. BMW will begin in-house assembly of the X3 in Spartanburg, S.C.

(Canadian Press)

TSX

Most Active By Trading Volume*

Symbol Price $ Change % Change Volume
ELR 2.440 -0.090 -3.56 13,137,329
SRU 1.090 -0.020 -1.80 12,668,288
FNI 1.480 -0.140 -8.64 9,563,433
LIM 27.550 +0.690 +2.57 8,743,771
MDS 21.930 -0.080 -0.36 4,804,738
EQN 2.660 -0.070 -2.56 4,777,459
BWR 2.330 -0.060 -2.51 4,536,381
A 2.740 -0.010 -0.36 4,320,255
IMG 7.610 -0.160 -2.06 4,271,113
TLM 21.390 +0.190 +0.90 4,156,813
DY 4.880 -0.030 -0.61 4,046,407
BBD.B 4.840 +0.040 +0.83 3,743,760
TOC 46.830 +0.480 +1.04 3,581,415
GCE 1.250 +0.330 +35.87 3,537,794
SXR 15.900 -0.310 -1.91 3,355,502

TSX VENTURE

Most Active By Trading Volume*

Symbol Price $ Change % Change Volume
GCR 1.800 +1.520 +542.86 20,321,601
SFR 0.460 +0.100 +27.78 4,005,243
BDO 0.770 -0.060 -7.23 2,881,800
IEA 0.155 -0.060 -27.91 2,849,400
SDN 0.170 +0.080 +88.89 2,481,566
FO 3.030 -0.090 -2.88 2,160,631
PLE 0.465 +0.085 +22.37 2,019,700
AFA 0.360 +0.005 +1.41 1,873,516
NAG 0.215 +0.025 +13.16 1,829,500
RSG 0.185 -0.005 -2.63 1,673,000
SGR 0.960 +0.030 +3.23 1,589,320
GCC 0.070 +0.000 +0.00 1,563,000
SRY 0.950 +0.010 +1.06 1,556,600
BN 0.530 -0.020 -3.64 1,517,452
PXR 0.185 +0.035 +23.33 1,506,520

TRADING HALTS/RESUMPTIONS
Trade Resumption – Eminence Capital Inc. – ECI.P
Trade Resumption – Aberdeen International Inc. – AAB
Trade Resumption – Southampton Ventures Inc. – SV
Trading Halt/ Trade Resumption – Brookfield Asset 8.30% PFD T 06/30/2051 – BAM.PR.T
Trading Halt/Trade Resumption – Urbana Corporation – URB ALL ISSUES
Trading Halt/ Trade Resumption – Dexit – DXT
Trading Halt/Trade Resumption – Forsys Metal Corp – FSY
Trading Halt – Rockgate Capital Corp. – RGT , Pending News
Trading Halt – Georgia Ventures Inc. – GVI, Pending News
Trading Halt – Delta Exploration Inc. – DEV ,Pending News
Trade Resumption – Golden Chalice Resources Inc. – GCR
NEW LISTINGS
Northstar Healthcare Inc. To Trade On Toronto Stock Exchange ,NHC, 12,087,698 common shares will be issued and outstanding and 3,021,923 common shares will be reserved for issuance pursuant to an initial public offering, will be posted for trading at opening on Thursday, May 17, 2007

iShares CDN Russell 2000® Index – Canadian Dollar Hedged Index Fund To Trade On Toronto Stock Exchange ,XSU, will be posted for trading at the opening on Friday, May 18, 2007.

iShares CDN Jantzi Social Index Fund To Trade On Toronto Stock Exchange ,XEN, will be posted for trading at the opening on Friday, May 18, 2007.

iShares CDN S&P/TSX SmallCap Index Fund To Trade On Toronto Stock Exchange , XCS, will be posted for trading at the opening on Friday, May 18, 2007.

Sources include Advisors.ca, TSX.com, Canadian Press, Yahoo Finance,
Stockhouse.com
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