Banks, gold poised to help Toronto stocks rebound
TORONTO, March 24 (Reuters) - Toronto stocks were poised
for gains on Monday, on the back of firm financial and metal
shares as it tries to recover from steep losses last week.
But the advance may be capped by weakness in the
influential energy group.
"The financials and the golds could give the market a
little bit of lift here today," said Steve Ibel, an
institutional equities trader at Beacon Securities in Halifax,
Nova Scotia.
"But oil is trading down so that could be the one negative
point on the market today."
Ibel also saw some volatility throughout the session as the
North American markets set their own course, with some key
global markets closed for Easter Monday.
The Toronto Stock Exchange's S&P/TSX composite index
<.GSPTSE> begins the week at 12,775.64 after ending the
holiday-shortened week with a gain of 66 points. Domestic
markets were closed on Good Friday.
For all of last week, the key index lost 3.6 percent,
however, as retreating resource prices and worries over the
stability of the financial sector weighed heavily on two of the
market's key sectors.
Bank stocks could find strength on Monday in the wake of
news that JPMorgan Chase & Co <JPM.N> was in talks to
quintuple its offer to buy Bear Stearns Cos <BSC.N>.
JPMorgan could lift its offer for Bear to $10 per share
from its original $2, in a deal which would value the company
at more than $1 billion.
Gold shares could also lift the market on Monday as the
price for the precious metal stabilized around $920 an ounce.
But falling oil prices could constrict the broader gains as
the price for U.S. crude oil slipped 1.2 percent to $100.65 a
barrel as investors locked in profits and Saudi Arabia said it
planned to boost supply.
Hoping to see a Rebound on the Markets
Sorento
