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Reuters
Market Comments
Tuesday, December 2, 2003
TORONTO, Dec 2 (Reuters) - Toronto stocks closed almost flat on Tuesday as gains in the energy and telecoms sectors were offset by a retreat by big-name gold-mining stocks, which had advanced for more than a week.
Adrian Mastracci, investment counsel and president of Vancouver based ‘fee-only’ KCM Wealth Management, says, “A year ago, people were saying 'it's the end of the world'... But we've had a pretty good comeback.”
The Toronto Stock Exchange S&P/TSX composite index (.GSPTSE) closed up 3.03 points, or 0.04 percent, at 7,927.60, its highest close since early June 2001.
"I think the (gold) majors are stretched valuation wise," said Brian Acker, president of brokerage firm Acker Finley. "The speculation is going into the little guys."
Gold bellwethers Barrick Gold (ABX.TO) and Placer Dome (PGD.TO) , which together comprise a fifth of the Toronto Stock Exchange's materials subindex, fell on profit-taking on Tuesday, even though the bullion price again closed above $400, surging as high as $405.55, its highest level since February 1996.
Barrick said on Tuesday it would eliminate its bulky hedge book, reversing a two decades-old hedging strategy, sending bullion prices to a 7-3/4 year high.
Seven of the TSX's 10 subindexes closed lower, mainly on profit-taking after Monday's healthy 65-point advance.
Nearly 327 million shares traded hands, with 647 stocks advancing and 629 declining. The blue chip S&P/TSX index (.TSE60) finished the day up 0.01 points at 442.06.
"The market today was boring," said Steve Gold, a research analyst at Leeward Hedge Funds Inc. "Investors are kind of sitting on the sidelines...I don't think you are going to see big moves."
The health-care subindex led the pack, rising 1.6 percent. QLT Inc. (QLT.TO) led the net gainers, rising C$2.60, or nearly 12 percent, to close at C$24.50.
Oil company stocks closed up nearly 0.9 percent, led by EnCana Corp (ECA.TO) and Suncor Energy (SU.TO) , which rose 1.3 percent and 1.5 percent respectively.
New York light oil crude futures surged on Tuesday, settling 83 cents higher at $30.78 as the market was unable to entirely discount the possibility of a surprise output cut at this week's OPEC meeting.
The telecoms sector rose nearly 1 percent, led by Manitoba Telecom (MBT.TO), which closed up 29 Canadian cents at C$42.50.
Analysts said they expect investors to take profits this month as the Toronto Stock Exchange has risen nearly 20 percent this year.
"A year ago, people were saying 'it's the end of the world'...But we've had a pretty good comeback," said Adrian Mastracci, president of KCM Wealth Management Inc., who expects a return between 8 percent and 9 percent on his investments next year.
In the United States, the blue-chip Dow Jones industrial average (.DJI) fell 45.41 points, or 0.46 percent, to close at 9,853.64. The Nasdaq Composite Index (.IXIC) closed down 9.75 points, or 0.49 percent, at 1,980.07.
($1=$1.30 Canadian)
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