Toronto stocks closed lower on Wednesday as former market titan Nortel Networks hit a new 52-week low.
The telecom sector was rocked by weak forecasts by Alcatel and negative analyst comments from Merrill Lynch and Goldman Sachs.
The TSE 300 slipped 14.33 points, to 7,447.70. Six of the TSE’s 14 sub-indices suffered losses, with the tech-heavy industrial products sector falling 2.53%. Selective buying in golds helped to break the fall. The precious metals sub-index advanced 2.17%.
Market volume was much lighter today at 115 million shares.
Among the industrials, Nortel fell 53¢ to a new low of $8.71. Volume was 12.7 million shares. Celestica continued is fall, dropping $4, or 8%, to $47, while C-MAC dropped $1.99, or 6%, to $31.49.
Anderson Exploration was again today’s top trader, adding 3¢ to close at $39.64, on volume of 17 million shares. Investors bid up other possible takeover targets such as Canadian Hunter, up $1.40 to $34.40, and PanCanadian Energy, up $1.65 at $40.75.
The TSE’s gold stocks ralli9ed after South Africa’s AngloGold Ltd launched a surprise $1.7 billion offer for Australia’s largest gold miner, Normandy Mining.
Volume on the Canadian Venture exchange was 27 million shares, with 146 advances, 196 declines and 522 issues closing unchanged. The CDNX index closed down at 3,001.51, a loss of 32.95 points.
On Wall Street, the Nasdaq ended lower for the second consecutive session as losses continue to plague the telecom sector.
Weak forecasts from Ericsson yesterday and Alcatel today, along with negative talk on the telecom industry from Merrill Lynch and Goldman Sachs didn’t help. But the Dow managed to eke out gains and secured its first close above 10,000 in a week.
The Dow Jones industrial average gained 35.78 points to 10, 033.27. The Nasdaq composite index is slipped 11.77 points to 1,759.01 The S&P 500 shed 1.2 points to 1,131.74.