Markets in North America trod carefully Monday, while digesting an announcement about the health of the banking sector in the United States, while traders in Toronto benefited mostly from a surge in oil’s fortunes.
The S&P TSX Composite Index ended the day marginally ahead, 33.02 points to 9,041.02, for a fifth straight positive session.
U.S. Treasury Secretary Timothy Geithner was to announce an overhaul of the $700-billion U.S. aid plan for the financial sector Monday, but the speech was pushed back so Washington could focus on Congressional approval for the Obama administration's stimulus bill.
The TSX financial sector was up 1.25% with Scotiabank higher by 63 cents to $31.21 while TD Bank climbed $1.03 to $40.83.
Kingsway Financial Services Inc. crumpled $1.27 or 20% to $4.98 after the company said it is quitting some businesses, cutting 750 jobs and selling assets, while warning of a big fourth-quarter loss.
The TSX energy sector was ahead, as EnCana Corp. rose $1.42 to $57.73 and Suncor Inc. advanced 79 cents to $26.28.
Precision Drilling Trust units were well above early lows but still off 15 cents to $4.80 after Canada's largest oil and gas driller indefinitely suspended distributions as the recession undermines demand for its services.
Elsewhere in the oilpatch, the board of UTS Energy Corp. urged shareholders to reject Total E&P Canada's “inadequate” $617-million offer to acquire the Calgary oilsands operator. UTS shares gained 11 cents to $1.81.
The base-metals sector rose 0.8% with shares in Teck Cominco Ltd. up 14 cents to $5.43 even as Moody's Investors Service on Friday lowered the miner's debt ratings.
The gold sector fell as Barrick Gold Corp. faded $2.38 to $45.62 and Goldcorp Inc. dropped $1.71 to $35.67.
The Canadian dollar jumped 0.58 cents to $82.20 cents U.S., as Canada Mortgage and Housing Corp. reported a bigger than expected drop in housing starts last month. CMHC said the seasonally adjusted annual rate of housing starts declined to 153,500 units in January from 172,200 in December.
Economists were expecting starts to come in at 169,000 but CMHC said reduced sales and increased listings of existing homes reduced demand for new dwellings.
BAYSTREET
Of the 13 TSX sub-groups, gainers swamped losers 11-2, mostly on the shoulders of energy stocks, which picked up 2.1%, followed by real-estate stocks, ahead 1.7% and health-care stocks, up 0.9%.
Gold stocks were down 4.3% and materials slipped 2.9%.
The TSX Venture Exchange sank 8.24 points to 901.10, while the NASDAQ Canada index was flat, at 575.70
ON WALLSTREET
The Dow Jones industrials index gave back 9.72 points on the day to 8,270.87. The Standard & Poor’s 500 index edged up 1.28 to 869.88. The NASDAQ composite index faded 0.15 points to 1,591.56
In Washington, the U.S. Senate version of the stimulus plan is expected to pass Tuesday, but must be reconciled with the House version, with its in tax cuts and spending
There was more grim international industrial news for investors to chew over.
Nissan Motor Co. plans to slash 20,000 jobs, or 8.5% of its global workforce, as the Japanese automaker faces its first annual loss in nine years.
Home appliance maker Whirlpool Corp. said fourth-quarter profit dropped 77%. Its stock stepped back 15 cents to $36.24 U.S. in New York.
Bank shares continued to rally after Friday's advance, ahead of the latest possible bailout news.
Large banks such as Bank of America and Citigroup advanced modestly. But smaller banks rallied more sharply, including Fifth Third, Huntington Bancshares and Regions Financials.
Barclays PLC warned of further asset writedowns - in addition to $11.9 billion U.S. booked for 2008. However, Britain's third-largest bank said its 2008 net profit fell only 1%, boosted by September's acquisition of part of failed U.S. investment bank Lehman Brothers Holdings.
Treasury prices slumped, raising the yield on the benchmark 10-year note to 3.01% from 2.98% Friday.
The price of crude changed direction, slipping a dime to $40.07 U.S. a barrel.
The April bullion contract in New York declined $21.50 to $892.80 U.S. an ounce
