Market News May 24, 2007

Market closes for Thursday, May 24, 2007:

Dow Jones 13,441.13 -84.52 or -0.62% YTD: +7.85%
S&P 500 1,507.51 -14.77 or -0.97% YTD: +6.29%
NASDAQ 2,537.92 -39.13 or -1.52% YTD: +5.08%
TSX COMP 13,946.27 -196.24 or -1.39% YTD: +8.04%
TSX VENT 3205.99 -72.93
Canadian dollar $Cdn. $U.S.
BoC Closing rate 1.0847 0.9219
Previous BoC closing rate 1.0821 0.9241

Cdn. Dollar/Euro Spot Rate 1.4564 0.6866
Gold AM PM
London Gold Fix (US) $661.50 $659.00

Spot Crude Oil Future(US) $64.18 -$1.59 or -2.42

NEWS
North American stock markets fell sharply Thursday as economic data triggered a wave of profit taking from stocks that have shot up recently, taking indexes to record highs

Toronto’s S&P/TSX composite index bore the brunt of losses, retreating 196.24 points to 13,946.27 just a day after closing at a record high, with added pressure coming from a sharp drop in oil and gold prices.

“You had to expect it was going to happen, things get a little too juicy here and a little bit more buoyant than they should be,” said Fred Ketchen, manager of equity trading at Scotia Capital.

“Mind you, we’re still up (eight) per cent for the year _ so is the Dow as far as that goes, and I don’t think we have any right to complain.”

The Canadian dollar slackened after rising 1.82 cents over the last four sessions to a 30-year high on higher commodity prices, a strong economy and hopes that Canadian interest rates could rise later in the year while U.S. rates dip.

The loonie closed down 0.22 of a cent to 92.19 cents US
The Nasdaq composite index lost 39.13 points to 2,537.92 and the S&P 500 index was down 14.77 points at 1,507.51 as the U.S. government reported that sales of new homes surged by 16.2% in April but home prices fell by a record amount.

Seasonally adjusted house sales increased to an annual rate of 981,000 units, far better than the 860,000 that economists had been expecting.

However, the median price of a new home sold last month fell to $229,100, a record 11.1% decline from the previous month.

The big price decline indicated that builders are slashing prices in an effort to move a huge overhang of unsold homes.

“But I think deep down today’s news is definitely mixed for the stock market,” said Michael Gregory, senior economist at BMO Nesbitt Burns.

“To me, it’s all about home prices. At the end of the day, the price figures in here are more bearish for the economy than the fact that at lower prices people have stepped up to buy some units.”

Adding to investor woes was data showed that demand for U.S. durable goods increased by 0.6% last month.
While the increase was less than expected, the government sharply revised the March performance to show a five per cent surge, much stronger than the 3.7% gain previously reported, which raised concerns that the Federal Reserve won’t be lowering interest rates this year.

“Sometimes good is bad,” said Scott Fullman, director of investment strategy for Israel A. Englander & Co. in New York.

“This takes away the anticipation that the Fed is going to ease interest rates because of the housing market.”
On the TSX, the mining sector was the biggest drag, down three per cent with July copper prices down 12 cents to US$3.18 a pound.

Teck Cominco Ltd. moved down $1.72 to $41.68 and HudBay Minerals fell 37 cents to $22.70.
The energy sector dropped two per cent as oil prices fell following data on Wednesday showing rising gasoline and crude inventories in the U.S. last week.

The July crude oil contract on the New York Mercantile Exchange moved down $1.71 to US$64.06 a barrel.
EnCana Corp. gave back $1.36 to $65.15 and Suncor Energy declined $2.50 to $92.80.
The financial sector was also lower after TD Bank Financial Group booked a 19% rise in quarterly profit, earning $879 million or $1.20 per share in its second quarter ended April 30, up from $738 million or $1.01 per share in the year-ago period.

TD shares moved up 21 cents to $70.74, after hitting a record high of $71.85 while shares in Royal Bank, which reports Friday, were ahead 32 cents to $60.62.

(Canadian Press)
TSX
Most Active By Trading Volume*

Symbol Price $ Change % Change Volume
SRU 1.360 +0.100 +7.94 10,789,265
EQN 2.870 -0.140 -4.65 9,019,361
SAS.RT 0.005 +0.000 +0.00 8,861,749
SAG 0.065 +0.010 +18.18 7,461,285
BBD.B 4.690 +0.010 +0.21 6,887,337
ELR 2.360 -0.120 -4.84 6,051,854
BCE 39.330 +0.070 +0.18 6,028,456
MIG 0.135 +0.005 +3.85 5,777,040
LIM 28.300 -0.070 -0.25 5,545,097
TLM 21.620 -0.390 -1.77 5,187,672
A 2.590 -0.110 -4.07 5,109,451
SXR 16.120 -0.600 -3.59 4,559,640
BWR 2.290 -0.030 -1.29 4,535,224
RNG 5.630 +0.090 +1.62 4,346,047
K 13.850 -0.500 -3.48 4,009,637

TSX VENTURE
Most Active By Trading Volume*

Symbol Price $ Change % Change Volume
TYS 0.850 +0.350 +70.00 15,546,520
WUC 3.750 +0.050 +1.35 4,789,572
IXS 0.560 -0.590 -51.30 4,332,077
FO 3.390 -0.300 -8.13 3,418,984
GCR 2.040 -0.100 -4.67 3,275,622
IZN 1.500 -0.100 -6.25 2,524,578
BDO 0.720 -0.060 -7.69 2,234,100
DNI 0.155 -0.025 -13.89 2,197,000
CBU 0.110 +0.010 +10.00 2,164,443
CML 1.020 -0.090 -8.11 1,922,250
URC 1.090 +0.090 +9.00 1,677,536
NRS 1.050 -0.100 -8.70 1,562,100
AMA 0.600 +0.060 +11.11 1,526,500
YZC 0.250 -0.005 -1.96 1,448,500
FTR 0.175 +0.025 +16.67 1,427,500

TRADING HALTS/RESUMPTIONS
Trade Resumption – Regent Ventures Ltd. – REV
Trading Halt /Trade Resumption – Oriel Resources PLC – ORL
Trading Halt – Highland Resources Inc. – HI.P , Pending News
Trading Halt/ Trade Resumption – One Exploration Inc. CL.A, CL.B – OE.A, OE.B
Trade Resumption – Caribou Resources Corp – CBU
Trading Halt/ Trade Resumption – Carpathian Gold Inc. – CPN
Trade Resumption – Pan Orient Energy Corp. – POE
Trade Resumption – Cream Minerals Ltd. – CMA
Trade Resumption – Tyler Resources Inc. – TYS
NEW LISTINGS
Aquila Resources Inc. To Trade On Toronto Stock Exchange , AQA , 70,109,478 common shares are issued and outstanding and 15,843,635 common shares are reserved for issuance, will be listed and posted for trading at the opening on Monday, May 28, 2007, AND will be delisted from TSXVN on May 28, 2007 upon commencement of trading on TSX.

Pethealth Inc. To Trade On Toronto Stock Exchange , PTZ , 28,381,535 will be issued and outstanding, and 8,735,819 will be reserved for issuance.BUT will consolidate its share capital on a 1 for 10 basis. , will be listed and posted for trading at the opening on Monday, May 28, 2007 on a consolidated basis., and will be delisted from TSX Venture Exchange on May 28, 2007.

SSQ Acquisitions Inc. To Trade On TSX Venture Exchange , SQ.P , CPC, 2,000,000 common shares at $0.10 per share,At the opening Friday May 25, 2007, the common shares of SSQ Acquisitions Inc. will be listed on TSX Venture Exchange, but will be immediately halted pending an announcement

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