Stocks are looking positive this morning, bouncing off Friday’s weakness. Bargain-hunting optimism is boosting blue chip names such as General Motors Corp. and Intel Corp.

In economic news, foreign investors continued to acquire Canadian securities in June, but switched their buying from bonds to stocks. The $4.0 billion addition to foreign holdings of Canadian stocks was the first increase of any size in 2002 and the largest in a year, as Canadian corporations raised $3.1 billion from issuing new shares to foreign investors in June. In the bond market, the holdings of foreign investors declined by $1.5 billion in June. Foreign investors made a small $0.4 billion investment in Canadian money market paper in June, mostly in federal treasury bills.

Meanwhile, Canadian investors resumed their investment in foreign securities, mainly through purchases of equities. After making a small
investment in foreign securities in May, Canadian investors stepped up their purchases with a much larger $2.1 billion investment in June. Three-quarters of the investment in June went to equities and the remainder went to bonds. The accumulated investment of $17.7 billion in foreign securities for the first half of 2002 is well below the $27.2 billion invested in the same period of 2001.

In Europe, stocks are up today. Bargain hunting is boosting names such as Bayer AG and BMW. The UK markets are closed this morning for a Bank Holiday. The Paris CAC 40 is up 19 points though to 3546. The German DAX has added 59 points to 3887.

Overnight in Asia, the Nikkei gained an even 200 points to close at 10068. But the Hang Seng dropped 19 points to 10226.

In earnings news, Ridley Inc. reported fourth quarter net earnings of $4.5 million compared with a loss of $10.4 million in the fourth quarter of fiscal 2001. Twelve-month net earnings of $15.0 million compared with $4.0 million in fiscal 2001.

Also, Leroux Steel Inc. announced that it has finalized the signature and establishment of credit facilities for its Canadian and American operations. In Canada, the company has secured credit facilities in the order of $120 million with GMAC Commercial Credit Corporation – Canada and Bank of America, N.A. for a three-year period.