Canada's stock index bolted higher at the open on Friday, the final day of trading in 2011, but it is on track to end the year with an overall decline of about 11%, weighed down by volatile commodity prices and the European debt crisis.
The S&P/TSX Composite sprinted ahead 89.32 points to begin the day at 11,931.02
The Canadian dollar edged up 0.04 cents to 98.06 cents U.S.
Among Canadian stocks to watch in this last session of 2011, Canadian-owned BCIF Holding Colombia S.A.S. has won a bid to acquire a Colombian state-owned power company for around $415 million, according to the country's finance ministry.
Miner CaNickel Mining Ltd. said it will cut production at its flagship Bucko Lake Mine by nearly a third, due to unfavourable nickel prices and to preserve capital.
Elsewhere, the Globe and Mail is reporting that activist investor Bill Ackman has recommended to the board of Canadian Pacific Railway Ltd. that the railway's current chief executive be replaced by Hunter Harrison, the 67-year old who used to head rival Canadian National Railway until 2009.
ON BAYSTREET
The TSX Venture Exchange gained 7.56 points to 1,469.11, while the Nasdaq Canada index added 3.95 points to 370.50
All but one of the 14 Toronto subgroups began the day positive. Materials, gold and industrials all surged 1.2% each. The lone laggard was in health-care, 0.1% sicker.
ON WALLSTREET
In New York, stocks opened slightly lower Friday, the final trading day of 2011, as investors bid farewell to an otherwise volatile year.
The Dow Jones Industrials dipped 4.51 points to greet the opening bell at 12,282.50.
The S&P 500 doffed 1.11 points to 1,261.91, while the Nasdaq Composite inched up 0.96 points to 2,614.70.
U.S. stocks rose Thursday in a thinly traded session as investors focused on signs of strength in the economy before calling it a year.
Thursday's rebound put the S&P 500 back on track for a modest 0.4% gain in 2011, after the broad market index fell sharply Wednesday. The Dow is currently up 6.1% for the year, while the Nasdaq is set for a 1.5% loss.
If stocks manage to end 2011 higher, it will mark the third straight year of gains for the major indexes.
Meanwhile, the main reason the Dow is faring better than the S&P this year is simply because it carries fewer financial stocks. Of the 30 components on the Dow, only four are financial -- Bank of America, JPMorgan Chase, Travelers and American Express.
Compare that to the S&P 500, which has 36 financial-related stocks, including major banks Goldman Sachs and Citigroup, along with troubled insurer AIG and Warren Buffet's Berkshire Hathaway.
Shares of American Airlines parent AMR Corp. plunged 39% following news that the company was being delisted from the NYSE as of Jan. 5.
The delisting is occurring because AMR's share price failed to average $1 over the past 30 days -- the minimum requirement set by the NYSE for listed stocks.
Shares of Yahoo extended the previous days gains, rising 1.6%, following reports that China's Alibaba Group had hired a lobbying firm to prepare a bid for the U.S. web search pioneer.
Friday is shaping up to be a quiet day as many investors have already closed their books for the year.
Traders said low volume, typical of the holiday week, has led to more pronounced swings this week, with some of the moves coming from year-end portfolio rebalancing rather than convictions over the trajectory of the market or particular stocks.
Investors will be happy to put 2011 to bed. The markets had a choppy year to say the least. From Japan's devastating earthquake to Europe's worsening debt crisis to the ongoing bickering in Washington, stocks experienced some violent swings so it's little wonder that investors are hoping for a quiet end to the year.
The price on the benchmark 10-year U.S. Treasury gained a bit of ground, pushing the yield down to 1.88% from 1.90% Thursday. Treasury prices and yields move in opposite directions.
Oil for January delivery gave back 63 cents to $99.02 U.S. a barrel.
Gold futures for February delivery added $31.80 to $1,572.70 U.S. an ounce.
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