By Frank Pingue
Reuters
Thursday, April 21, 2005
TORONTO, April 21 (Reuters) - Toronto stocks were slightly lower at midday on Thursday with big gains on U.S. markets not enough to prod the Canadian bourse forward.
Adrian Mastracci, investment counsel at Vancouver’s ‘fee-only’ KCM Wealth Management, says, "It's a confusing picture out there at the very best.”
Around midday, the Toronto Stock Exchange's key S&P/TSX composite index was off a modest 13.44 points, or 0.14 percent, to 9,364.67. Volume was 86 million shares worth C$1.8 billion.
"There's a lot of jitters out there. It would be fair to say that investors are not jumping on bandwagons," said Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc.
"They'd like to. They'd like to say, things are going well, it's time to really put our money to work. But one day you get that, the next day you get the exact opposite. So you really don't know what to do. It's a confusing picture out there at the very best."
Toronto stocks were in sharp contrast with U.S. stocks, which were rallying after a Federal Reserve survey showed stronger-than-expected regional manufacturing activity, easing concerns of slowing economic growth. The U.S. markets were also powered by positive earnings and outlooks from several key companies as well as reassuring economic comments from Fed Chairman Alan Greenspan.
New York's Do Jones industrial average was up 143 points, or 1.34 percent, and Nasdaq was up 34.73 points, or 1.81 percent.
"There's always going to be some sort of disconnect between the two countries. Their outlook in the U.S. is a little different than here," Mastracci said.
Analysts were also mixed on whether jitters over a rare televised address to the nation by Canadian Prime Minister Paul Martin on Thursday evening was keeping investors sidelined. The scandal has paralyzed Parliament and opposition parties have hinted at forcing a June election.
Eight of the TSX's 10 main groups were in the red at midday, though most hugged close to the unchanged mark.
Gold miners led the index down, slipping 0.78 percent as gold prices ended lower overseas. Yamana Gold lost 12 Canadian cents, or 3.09 percent, to C$3.76, while Placer Dome Inc. slid 31 Canadian cents, or 1.65 percent, to C$18.49.
The overall materials group, of which the gold stocks are a component, was down 0.36 percent.
Tech issues were down 0.54 percent, pressured by Celestica Inc., which fell 35 Canadian cents, or 2.36 percent, to C$14.50. Before markets opened, the world's No. 4 contract electronics manufacturer posted a smaller first-quarter net loss.
Cott Corp., which reported a lower first-quarter profit and reduced its profit outlook for the year on Thursday morning, helped pull down the consumer staples group. The world's largest maker of store-brand soft drinks was down 54 Canadian cents, or 1.87 percent, at C$28.38.
The consumer group was off 0.48 percent.
($=$1.24 Canadian)
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