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By Amran Abocar
Reuters
Thursday, March 18, 2004
TORONTO, March 18 (Reuters) - Toronto stocks were stuck in negative territory at midday on Thursday, led lower by Bombardier and Manitoba Telecom, while cautious investors mulled economic data and security concerns.
Adrian Mastracci, investment counsel and president of Vancouver based ‘fee-only’ KCM Wealth Management, says, “The investors are seeing some economic optimism but there's still a few little nagging things.”
At midday, the Toronto Stock Exchange S&P/TSX composite index was down 46.66 points, or 0.54 percent, at 8,555.06, on a volume of 152 million shares worth C$2.1 billion. Eight of the TSX's 10 subgroups were lower.
"The investors are seeing some economic optimism but there's still a few little nagging things," said Adrian Mastracci, president of KCM Wealth Management in Vancouver.
"I'm not so sure they even know what to do. This is why we get a couple of days of upside then you come back down."
Canadian inflation data proved tame on Thursday but the Philadelphia Federal Reserve's survey showed a surprise drop in manufacturing in the U.S. Mid-Atlantic region in March.
Three names led the Toronto decline: Bombardier Inc (BBDb.TO), Nortel Networks (NT.TO) and Manitoba Telecom Services (MBT.TO), which topped the most active list.
Manitoba Telecom's stock slumped after it agreed to buy Allstream Inc. (ALRb.TO) for C$1.7 billion. Manitoba Telecom shares fell C$3.90, or 7.32 percent, to C$49.40. The slide weighed on the telecoms sector, which dropped 2.97 percent.
Bombardier dragged its industrials sector down 2.29 percent as investors punished the stock after it reported a loss on Wednesday and unveiled plans to restructure its rail unit.
Bombardier's class B shares were off 64 Canadian cents, or 9.94 percent, at C$5.80.
The health-care and technology sectors were both down more than 1 percent.
Among techs, market heavyweight Nortel lost 12 Canadian cents, or 1.61 percent, to C$7.34 while Research In Motion (RIM.TO) , maker of the Blackberry communicator, fell C$2.10, or 1.66 percent, to C$124.75.
On the upside, the utilities and materials group both rose. Materials gained 1.03 percent, supported by gold mining issues which rose 3.27 percent as security fears and weakness in the U.S. dollar pushed bullion prices higher.
An alert on the Eurostar train that connects Britain to France and a second bomb blast in Baghdad kept security concerns at the forefront. French police said an object found on a stretch of the rail was not dangerous.
($1=$1.32 Canadian)
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