C4 RED DEER ADVOCATE Thursday, July 19, 2012
MARKETS COMPANIES OF LOCAL INTEREST Wednesday’s stock prices supplied by RBC Dominion Securities of Red Deer. For information call 341-8883.
Diversified and Industrials Agrium Inc. . . . . . . . . . . . 96.69 ATCO Ltd.. . . . . . . . . . . . 74.11 BCE Inc. . . . . . . . . . . . . . 42.50 Bombardier . . . . . . . . . . . . 3.86 Brookfield . . . . . . . . . . . . 33.92 Cdn. National Railway . . 87.91 Cdn. Pacific Railway. . . . 75.75 Cdn. Satellite . . . . . . . . . . 3.75 Cdn. Utilities . . . . . . . . . . 68.45 Capital Power Corp . . . . 24.35 Cervus Equipment Corp 19.09 Dow Chemical . . . . . . . . 30.74 Enbridge Inc. . . . . . . . . . 41.09 Finning Intl. Inc. . . . . . . . 21.09 Fortis Inc. . . . . . . . . . . . . 32.91 General Motors Co. . . . . 20.07 Parkland Fuel Corp. . . . . 14.95 Research in Motion. . . . . . 7.03 SNC Lavalin Group. . . . . 39.46 Stantec Inc. . . . . . . . . . . 27.36 Telus Corp. . . . . . . . . . . . 62.69 Transalta Corp.. . . . . . . . 17.36 Transcanada. . . . . . . . . . 44.21 Consumer Brick . . . . . . . . . . . . . . . . . 4.03 Canadian Tire . . . . . . . . . 67.69 Gamehost . . . . . . . . . . . . 12.35 Loblaw Ltd. . . . . . . . . . . . 32.28 Maple Leaf Foods. . . . . . 10.55 Rona Inc. . . . . . . . . . . . . 11.12
Shoppers . . . . . . . . . . . . 42.66 Tim Hortons . . . . . . . . . . 52.66 Wal-Mart . . . . . . . . . . . . . 72.85 WestJet Airlines . . . . . . . 16.47 Mining Barrick Gold . . . . . . . . . . 34.66 Cameco Corp. . . . . . . . . 22.34 First Quantum Minerals . 16.60 Goldcorp Inc. . . . . . . . . . 32.86 Hudbay Minerals. . . . . . . . 7.61 Inmet Corp.. . . . . . . . . . . 38.78 Kinross Gold Corp. . . . . . . 7.97 Potash Corp.. . . . . . . . . . 46.29 Sherritt Intl. . . . . . . . . . . . . 4.74 Teck Resources . . . . . . . 30.82 Energy Arc Energy . . . . . . . . . . . 23.29 Badger Daylighting Ltd. . 25.27 Baker Hughes. . . . . . . . . 41.84 Bonavista . . . . . . . . . . . . 16.25 Bonterra Energy . . . . . . . 43.34 Cdn. Nat. Res. . . . . . . . . 28.07 Cdn. Oil Sands Ltd. . . . . 19.66 Canyon Services Group. . 9.64 Cenovous Energy Inc. . . 32.92 CWC Well Services . . . . 0.660 Encana Corp. . . . . . . . . . 20.75 Essential Energy. . . . . . . . 1.90 Exxon Mobil . . . . . . . . . . 86.21 Halliburton Co. . . . . . . . . 30.17 High Arctic . . . . . . . . . . . 1.580
Husky Energy . . . . . . . . . 25.80 Imperial Oil . . . . . . . . . . . 43.10 IROC Services . . . . . . . . . 2.24 Nexen Inc . . . . . . . . . . . . 17.43 Pengrowth Energy . . . . . . 6.21 Penn West Energy . . . . . 12.78 Pinecrest Energy Inc. . . . . 1.75 Precision Drilling Corp . . . 7.21 Pure Energy . . . . . . . . . . . 7.02 Suncor Energy . . . . . . . . 30.20 Talisman Energy . . . . . . . 11.21 Trican Ltd.. . . . . . . . . . . . 10.60 Trinidad Energy . . . . . . . . 5.56 Vermilion Energy . . . . . . 46.60
MARKETS CLOSE TORONTO — The Toronto stock market closed little changed Wednesday, supported by rising oil and copper prices amid further evidence of a slow housing recovery and strong corporate earnings in the U.S. But the market was held back by sliding gold stocks as bullion fell for a third session. The S&P/TSX composite index inched up 7.96 points to
11,579.15 while traders took in major dealmaking. Canada’s fourth-largest cable company has a deal to acquire a U.S. system operator for US$1.36 billion. Montreal-based Cogeco Cable Inc. (TSX:CCA) says it has a definitive agreement to buy Atlantic Broadband, a private company that operates in five states. The deal will be Cogeco’s entry into the United States. Cogeco stock slid $6.60
or 14.83 per cent to $37.90. The Canadian dollar was up 0.18 of a cent at 98.94 cents US. The TSX Venture Exchange added 5.59 points to 1,182.34. U.S. markets turned higher as American builders last month broke ground on the most new homes and apartments in nearly four years. The U.S. Commerce Department says that housing starts rose 6.9 per cent in June from
STORIES FROM PAGE C3
ECONOMY: Assumptions overly optimistic David Madani of Capital Economics also called the bank’s assumptions overly optimistic, noting he sees a dampening housing sector as recent indicators suggest. Both prices and sales have dropped, in some cases sharply in recent weeks, including in hot markets like Vancouver and Toronto. “We expect the bank to drop its interest rate tightening bias and move completely to the sidelines before year-end,” Madani said. Also on Wednesday, the Conference Board of Canada lowered its expectations for Canadian economic growth to 2.2 per cent in 2012 and 2.4 per cent in 2013. It had previously projected GDP growth of 2.3 per cent this year and 2.8 per cent next year. Responding to a question about continuing to lean toward hiking interest rates, while around the world central banks are easing further, Carney said he makes decisions based on Canadian conditions, not those in other economies. “We’re in a situation where there’s a very small amount of excess capacity in this economy,” he said. “Rates are at one per cent, they’re very low.” Deputy Liberal leader Ralph Goodale said the bank report should be a wake-up call to the Harper government. He called for more incentives for hiring students and youth, better access to post-secondary education and skills-training, a stronger commitment to support basic research and simplification of Canada’s tax code. “If Mr. Harper does not pull his head out of the sand, Canada’s mediocre economic performance, a nationwide skills and training shortage, and rising household debt could spell serious trouble for hardpressed middle-class families,” he said. Carney sees the performance of the export sector, which accounts for about one third of gross domestic product, as a major disappointment holding back the recovery. Canada’s global market share of goods exports has actually declined in recent years, from a peak of 4.5 per cent in 2000 to 2.7 per cent in 2010, the bank noted, and exports overall have yet to recover to the pre-recession level. The sector is facing pressures from the strong dollar, which hurts manufacturers in central Canada most, and low productivity. But the biggest drawback is that exporters continue to focus on the United States and other slow-growing nations, and not enough on fast-growing emerging markets like China. “So it’s the structure of where our export markets are,” he explained. “One of the messages the bank is trying to get across is one can expect those economies to be relatively low-growth for some time.” Carney said government stimulus and household consumption backed by low interest rates had sus-
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Financials Bank of Montreal . . . . . . 57.78 Bank of N.S. . . . . . . . . . . 52.29 CIBC . . . . . . . . . . . . . . . . 71.75 Cdn. Western . . . . . . . . . 25.78 Carefusion . . . . . . . . . . . 25.52 Great West Life. . . . . . . . 21.95 IGM Financial . . . . . . . . . 39.05 Intact Financial Corp. . . . 62.79 Manulife Corp. . . . . . . . . 10.72 National Bank . . . . . . . . . 74.95 Rifco Inc.. . . . . . . . . . . . . 1.850 Royal Bank . . . . . . . . . . . 52.38 Sun Life Fin. Inc.. . . . . . . 21.95 TD Bank . . . . . . . . . . . . . 80.37
May to a seasonally adjusted annual rate of 760,000, which beat expectations of 743,000. At the same time, the number of permits to build homes, a sign of future construction, fell 3.7 per cent to 755,000. But that’s down from May’s three-and-a-half-year high. The Dow Jones industrial average jumped 103.16 points to 12,908.7. The Nasdaq composite index was ahead 32.56 points to 2,942.6 and the S&P 500 index was up 9.11 points to 1,372.78. Shares in Intel shook off early weakness to move up 83 cents to $26.21 following an announcement Tuesday after the close that the weak global economy is slowing its growth, and revenue for the current quarter is likely to come in below forecasts. Intel’s second-quarter net income was US$2.83 billion, or 54 cents per share, down 4.3 per cent from a year earlier, as operating expenses rose faster than revenue. Net income beat forecasts by two cents. Honeywell International, a big technology and manufacturing company, reported an 11 per cent increase in second-quarter income Wednesday, more than Wall Street was expecting, thanks to higher demand for its products. Honeywell also raised its forecast for full-year profits. Honeywell’s stock jumped $3.64 to US$58.18. After the close, there was further good news from IBM. The tech bellwether turned in earnings per share of US$3.51, beating analyst estimates by nine cents a share. Its stock moved up 0.75 per cent in after-hours trading. Meanwhile, the Federal Reserve’s latest take on growth said the U.S. economy grew at a “modest to moderate” pace over the last month and a half as more districts are reporting slowing growth. However, the so-called Beige Book, which covered the economy between June and early July, said three regions, up from one in the last survey, reported slowing growth. The slowdown
tained the recovery so far, but there are limits to that approach. “We’re seeing the limits on the household debt side which is why various measures are being taken,” he said, referring to tighter mortgage and lending rules. The bank does not forecast employment, but the macro growth numbers suggest that job creation will be modest the rest of 2012. Looking at the economy by sectors, the bank says business investment and consumer spending, supported by super-low interest rates, remain the chief support systems for the recovery.
SYLVAN: Phone ringing off the hook Homes have already been built on two other lakefront developments: The Properties of Eagles Quay and Westside Country Estates. Eagles Quay is at the northeast corner of Sylvan Lake and currently consists of 15 lots measuring 0.75 acres each. Six are already spoken for, with two homes in place, said owner Frank Layton. A lifelong part-time resident of Sylvan Lake, the Edmonton lawyer has spent years developing Eagles Quay, with two permanent staircases extending down to the water, a pier system where owners can moor their boats and a three-acre recreational area away from the lake. There are also paved roads, trails and picnic tables, with all services in place. Layton said he wanted to develop the 30-acre parcel “first class.” “My intention is to make that sort of the Hamptons — like New York — of Sylvan Lake.” Pricing is based on a recent appraisal of the lots, with the five remaining properties on the lake listed at $1.2 million and the four others at $750,000. Layton said he’s in no hurry to sell, with waterfront land at Sylvan Lake sure to appreciate. But he has noticed a spike in interest recently. “My phone has been ringing off the hook.” Jim Jardine of Trilliant Real Estate Group, the listing agent for Westside Country Estates, tells a similar story. He’s seen a flurry of activity at the 12lot development not far from Eagles Quay. “We’ve had a quiet few years because the mar-
D I L B E R T
appeared to be concentrated in the East Coast and Mid-Atlantic regions, as the New York, Philadelphia and Cleveland districts saw slowing growth. Fed chairman Ben Bernanke earlier Wednesday told a congressional panel that despite slowing economic conditions, he does not expect the U.S. to fall into recession. Investors also watched Bernanke’s comments to see if the central bank may be close to launching another round of bond purchases. But some analysts questioned whether another round of stimulus is what is needed for the economic recovery. “Governments around the world, namely the U.S., have to get themselves off of this addiction that the Fed will come in and rescue the day,” said Chris Kuflik, wealth adviser at ScotiaMcLeod in Montreal. “I was actually kind of happy that he didn’t (unveil new stimulus measures Tuesday). Because to me, that means that things are not quite as bad as they seem.” The base metals group led TSX advancers, up 1.33 per cent as copper prices gained two cents to US$3.47 a pound. Ivanhoe Mines (TSX:IVN) improved by 56 cents to C$8.84 while Thompson Creek Metals (TSX:TCM) edged up seven cents to $2.63. Intel’s better-than-expected earnings helped push the Canadian tech sector 0.6 per cent higher as CGI Group (TSX:GIB.A) climbed 33 cents to $23.99, while Open Text (TSX:OTC) climbed 70 cents to $48.16. The consumer staples sector was up 0.68 per cent as convenience store chain Alimentation Couche Tard (TSX:ATD.B) gained 45 cents to $48.37. Couche-Tard Inc. says it has a deal to acquire 27 locations in the State of Washington through its Circle K division. The price of the acquisition is being kept confidential. The TSX energy sector rose 0.3 per cent as the August crude
contract on the New York Mercantile Exchange gained 65 cents to a seven-week high of US$89.87 a barrel. Canadian Natural Resources (TSX:CNQ) climbed 76 cents to C$28.07. Financials were also positive as Scotiabank (TSX:BNS) rose 24 cents to $52.29. The gold sector was the weakest component, down 1.77 per cent as gold faded $18.70 to US$1,570.80 an ounce. Goldcorp Inc. (TSX:G) gave back $1.24 to C$32.86 and Barrick Gold Corp. (TSX:ABX) shed 42 cents to $34.66. Elsewhere on the earnings front, fertilizer company Agrium Inc. (TSX:AGU) said that it is expecting record earnings for the second quarter. The Calgarybased firm said earnings will be in the range of $5.40 to $5.50 diluted earnings per share while first half earnings will come in at a range of $6.72 to $6.82 per share. Agrium said the revised estimates are about 15 per cent higher than previously announced. Its stock moved up $2.78 to $96.69. ICE FUTURES CANADA WINNIPEG — Closing: Canola: Nov.’12 $0.80 lower $632.50; Jan ’13 $0.40 lower $635.60; March ’13 $1.00 lower $635.00; May ’13 $1.00 lower $632.10; July ’13 $0.10 lower $629.40; Nov. ’13 $0.10 lower $574.90; Jan. ’14 $0.10 lower $569.70; March ’14 $0.10 lower $569.70; May ’14 $0.10 lower $569.70; July ’14 $0.10 lower $569.70; Nov. ’14 $0.10 lower $569.70. Barley (Western): Oct. ’12 $4.00 higher $255.00; Dec. ’12 $5.00 higher $260.00; March ’13 $7.00 higher $265.00; May ’13 $7.00 higher $267.00; July ’13 $7.00 higher $267.00; Oct. ’13 $7.00 higher $267.00; Dec ’13 $7.00 higher $267.00; March ’14 $7.00 higher $267.00; May ’14 $7.00 higher $267.00; July ’14 $7.00 higher $267.00; Oct. ’14 $7.00 higher $267.00. Wednesday’s estimated volume of trade: 298,160 tonnes of canola; 0 tonnes of barley (Western Barley) Total: 298,160.
ket’s going down and everyone wants to see where its going to bottom out. Then once it bottoms out, they jump in — I think that’s what’s happening now.” After selling one of his 0.75-acre, lakefront lots for $450,000, Westside Country Estates developer Frank Wilson lowered the price to $399,900 in response to the soft market — with little effect. But that changed recently, with three properties now sold and Jardine dealing on four others. “As soon as we have six confirmed sales we’re going to up the price,” said Jardine. The fully serviced lots are connected with a paved roadway. Other Sylvan Lake developments that have come to Lacombe County include Highland Park, Westend Landing and property owned by Marjorie Boehm, with rezoning and preliminary subdivision approval granted for all. Dale Freitag, the county’s manager of planning services, said it’s common for pre-sales to occur before final subdivision approval is sought. “A lot of them try to see where the pre-sales are at, and then they’ll start putting the shovel in the ground.” hrichards@reddeeradvocate.com
LUMBER: Ruling welcomed Ed Fast, the federal minister of international trade, also welcomed the ruling. “This positive outcome is the result of our close collaboration with provincial and industry partners and proof that the (softwood lumber agreement) is good for Canada’s forestry sector,” he said in Ottawa. The United States launched the complaint in January 2011, arguing B.C. was unfairly subsidizing wood damaged by the mountain pine beetle, which has been chewing out the guts of forests for years. Pine beetle is a problem in areas across the province, but the B.C. Lumber Trade Council said Wednesday’s decision focuses on wood in the province’s Interior. Industry observers said the dispute was the most serious to date under the softwood lumber agreement, because it struck at the core of forestry policy and timber pricing. The U.S. Lumber Coalition expressed bitter disappointment in Wednesday’s ruling. “While the coalition vehemently disagrees with the (court) panel conclusion, we respect and appreciate the efforts of this panel and the U.S. government to grapple with the complex issues involved in this case,” said coalition chairman Steve Swanson, who also runs the family-owned Swanson Group in Oregon.