The Toronto stock market recovered Wednesday, after starting the day down sharply, as political turmoil in Greece and worries about slowing economic conditions took a big bite out of commodities.
The S&P/TSX Composite Index had actually made its way into the green 32.55 points to greet noon at 11,737.29. The index was down more than 100 points soon after the opening bell.
The Canadian dollar sank 0.30 cents to 99.83 cents U.S., below parity with the greenback for the first time in weeks.
Commodity prices have taken a big hit amid these worries and the TSX is more than 2% below where it started the year.
Oil prices are taking it on the chin, with companies such as Suncor Energy falling 69 cents to $29.08. Canadian Natural Resources moved down 38 cents to $30.31.
The base metals component dropped sharply as metal prices also fell with the July copper contract in New York down five cents to $3.63 U.S. a pound. Copper, viewed as an economic bellwether because it is used in so many industries, has fallen almost 6% this month. Teck Resources lost 72 cents to $32.81 while HudBay Minerals was 24 cents lower at $9.50.
The gold sector eased as Barrick Gold Corp. shook off early losses to gain 16 cents to $36.87.
But Kinross Gold Corp. fell 40 cents to $7.35 as it reported a first-quarter profit of $105.7 million U.S, down from $250.1 million a year ago, as production slipped. Sales totaled $1.04 billion, up from $937 million.
Losses were spread across all sectors with financials down. Royal Bank lost 54 cents to $53.55.
Railway stocks also lost more ground, with Canadian Pacific Railway off $1.01 at $72.68.
An attempt by New York investment firm Pershing Square Capital Management to have its nominees join the board of directors at CP and replace chief executive Fred Green gained more momentum.
Pershing Square said proxy advisory firm Glass, Lewis & Co. and credit rating agency Egan-Jones Ratings Co. are now backing its plan to revamp CP’s board.
On the earnings front, Tim Hortons Inc. said quarterly net income was up 10% from a year ago to $88.8 million or 56 cents a share. Total revenues were up by 12.1% to $721.3 million but its shares shed $1.52 to $55.56.
In the media sector, Quebecor Inc. said its first-quarter net income rose to $72.9 million, or $1.15 per share, from $34.3 million, or 53 cents per share, a year ago. Its stock rose 11 cents to $37.11.
And Torstar Corp. shares were off 28 cents at $9.82 as it reported net income of $29.3 million, or 37 cents per share, in the first quarter of 2012. That is up from $15.5 million, or 20 cents, in the first quarter of 2011.
Elsewhere on the corporate front, Telus Corp. shares slipped 35 cents to $57.81 as it decided to withdraw a proposal to end its dual-share stock structure just hours before it was to be put to a vote.
The Vancouver-based telecom had been planning to put the proposal for creating a single class of common shares before the company’s annual general meeting in Edmonton on Wednesday. However, it said it decided against the move because it faced certain defeat following a campaign led by the U.S.-based hedge fund Mason Capital Management.
ON BAYSTREET
The TSX Venture Exchange improved 4.29 points to 1,342.66, while the Nasdaq Canada fell 1.50 points to 380.25.
Eight of the 14 Toronto subgroups were higher by midday. Gold triumphed 3.3%, materials advanced 2.1%, while metals and mining stocks picked up 1.2%.
The half-dozen laggards were weighed mostly by information technology, down 0.6%, while industrials and financials trailed Tuesday’s close by 0.3% each.
ON WALLSTREET
U.S. stocks traded sharply lower Wednesday as investors remained on edge over developments in Europe.
The Dow Jones Industrials swooned 81.78 points to approach noon at 12,850.31
The S&P 500 ducked back 7.48 points to 1,356.24. The tech-rich Nasdaq Composite Index slipped 10.37 to 2,935.90.
Shares of GlaxoSmithKline declined Wednesday, after the drugmaker said it is taking its previously announced unsolicited $13-U.S.-a-share offer for Human Genome Sciences directly to shareholders in a hostile bid.
Shares of Human Genome have more than doubled since GlaxoSmithKline's April 18 offer, and are now trading above the $13 U.S. offer price.
Shares of Green Mountain Coffee Roasters edged lower, after the company announced late Tuesday that founder and former CEO Robert Stiller had been stripped of his title as chairman, for selling more than $125 million U.S. worth of Green Mountain stock earlier this week in a margin call.
The sale was in violation of company policy on insider trading following certain events such as earnings reports. A disappointing earnings report a week ago sent shares of Green Mountain down nearly 50%, prompting Stiller's margin call.
Shares of AOL popped after the web portal posted earnings of 22 cents U.S. a share, far better than the consensus forecast of seven cents U.S. a share from analysts surveyed by Thomson Reuters -- topping even the most bullish forecasts.
Shares of Walt Disney hit an all-time high after the media company posted strong earnings growth.
Bed Bath & Beyond agreed to buy Cost Plus for almost $495 million U.S., or $22 U.S. per share.
Shares of Macy's dropped after the retailer failed to boost its forecasts. That caused investors to worry about a slowdown in consumer spending, even after the company's results beat analysts' expectations.
After the close Wednesday, News Corp., the media company under siege for a phone hacking scandal in Britain, is expected to post earnings of 31 cents U.S. per share on revenue of $8.2 billion U.S.
Analysts predict network equipment maker Cisco Systems will post earnings of 47 cents U.S. a share on $11.5 billion U.S. in revenue, while travel website Priceline.com is forecast to report earnings per share of $3.95 U.S. on $1 billion U.S. in revenue.
Shares of video game developer Take-Two Interactive Software fell Wednesday, after it announced that it would delay the release of a new game from its popular franchise "Bioshock Infinite."
Investors are growing increasingly wary that Spain might need to inject public sector money to save its fragile banks. Yields on Spanish 10-year bonds crossed 6% for the first time in two weeks Wednesday morning.
Meanwhile, Greece continues to weigh on investors' minds. Elections failed to yield a coalition government, which throws into question whether the nation will be able to meet the requirements needed to secure its next round of bailout funds.
The Wall Street Journal reported that euro-zone countries were debating Wednesday whether to delay €5.3 billion in aid.
On the economic slate, the Commerce Department's figures for March wholesale inventories came out this morning.
Meanwhile, on Capitol Hill, former Federal Reserve Chairman Paul Volcker will testify before a Senate Banking subcommittee on limiting federal support for financial institutions.
The price on the benchmark 10-year U.S. Treasury strengthened, pushing the yield down to 1.83% from Tuesday’s 1.84%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil extended losses, falling another 81 cents, to $96.20 U.S.
Gold futures for June delivery tumbled $17.20 to $1,588.40 U.S. an ounce.
