The new North American trading week began on Monday, May 14th with investors encouraged that all of the major markets had finished the previous week in the black. To which technical analysts David Tippin & Ron Meisels commented – “The bulls are moving back in control of the markets and a major new up leg has started.” (For a complete copy of this report please contact Rod.Blake@canaccord.com.)
The marijuana space came to life on the news that Aurora Cannabis ‘ACB-T’ was taking over fellow grower MedReleaf Corp. ‘LEAF-T’ in an all-stock deal valued at some $3.2-billion.
Meanwhile, the largest Canadian player in the sector, Canopy Growth ‘WEED-T’ announced it expected to be listed on the New York Stock Exchange (NYSE) by the end of May with a trading symbol of ‘CGC-N’.
Badger Daylighting ‘BAD-T’ shares’ rose by over 3.5% to $27.65 after the specialty ground boring company impressed the street with its 1st-quarter financials.
Tuesday, May 15th had the Canadian Real Estate Association report that the average price of a Canadian home fell by 11.3% in the past year to April to just over$495,000.
The World Gold Council reported that global gold demand for the first 1st-quarter was a 10-year low of 973-tonnes.
Osisko Mining ‘OSK-T’ shares’ plunged by over 25% to $2.02 when the company’s newly updated mineral resource estimate for its Windfall Lake gold project in Quebec failed to meet the market’s expectations.
ProMetic Life Sciences ‘PLI-T’ shares’ fell by over 5% to $0.71 on Wednesday, May 16th after the pharma company indicated it was lowering its R&D spending in the quarter ahead.
Abaxis Inc. ‘ABAX-Q’ stock rose by over 16% to US$83.34 after the healthcare company agreed to a US$1.8-billion cash & debt takeover by Zoetis Inc.
Thursday, May 17th had pipeline giant Enbridge Inc. ‘ENB-T’ announce it was simplifying its corporate structure by absorbing all of its subsidiaries into the parent company in an all-stock deal of some $11.4-billion.
Walmart Canada ‘WMT-N’ announced that its gains in its grocery business helped to drive same-store sales up by 2.6% in the 1st-quarter.
Statistics Canada announced on Friday, May 18th that the country’s annual inflation rate rose by 2.2% in the past year to April.
Much of the rise in inflation may be attributed to fuel costs as Statistic Canada also reported that the price of gasoline rose by 14.2% year-over-year to April.
And Stats. Can. also reported that the country’s retail sales rose in March by a better than expected 0.6%.
The Canadian markets traded very quietly going into the Victoria Day long weekend.
During the Week – The TSX Composite Index rose to a 3½-month high of 16,162, as crude oil climbed to a new 3½-year high of US$71.54-a-barrel while the price of lumber rose to a new all-time high of US$627.70/mbf.
Canadian REIT ‘REF.UN-T’ at $52.39, Magna International ‘MG-T’ at $84.59 and Methanex Corp. $91.38 all climbed to new TSX 52-week trading highs while Atco Ltd. ‘ACO.Y-T’ at $38.50, Magellan Aerospace ‘MAL-T’ at $16.53 and Thomson Reuters ‘TRI-T’ at $46.69 all fell to new 52-week trading lows.
For the Week – the Dow Industrials fell by 0.47% to 24,715, with the S&P 500 off by 0.55% to 2,713 and the NASDAQ down by 0.66% to 7,354. Across the line – the TSX Composite gained 1.12% to 16,162 and the TSX Venture was up by 0.38% to 786.
With Commodities – gold bullion lost 2.20% to US$1,292, with copper off by 1.61% to US$3.06 as crude oil dropped by 1.00% to US$71.39 while natural gas gained 1.41% to US$2.87. Overall – the CRB Spot Commodity Index was lower by 0.22% to end the week at 442.
The Canadian dollar dropped by 0.70% against its southern neighbour to finish the week at US$0.7762.
And the closely watched CBOE Volatility Index or VIX rose by o.75-point to end the week at a little more nervous level of 13.40.
And Finally – The annual charity action to have a private lunch with market icon Warren Buffet will begin on May 27th and end on June 1st. And if you’re thinking on bidding – be advised that last year’s winner paid a tidy sum US$2,679,001 for the privilege of inviting 7-friend to dine with the world’s foremost investor.
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