Energy and tech stocks lead TSE rally

The bulls really carried the day today. Advancers outran decliners
about 11:9. Buyers accounted for more than 105 million shares on the
upside. Just 37 million shares moved on the downside.

Energy and tech stocks ruled the day. Continued strong oil prices
may be fuelling inflation fears on Wall Street, but they are also
driving that important sector higher. Several big brokerages were
talking up the oil companies’ fortunes today too. All the blue chip
oils – CanOxy, Talisman, Suncor and Renaissance –
had good days.

Tech stocks shook off fears surrounding the possible “nines problem.”
Some computer programmers suggested today’s date, 9/9/99, might foul
computers today. The fears proved unfounded. Nortel and BCE
led the way among the Canadian techs. The few Canadian Internet stocks
also saw a fair bit of interest.

TIPS were the hottest trade on Bay Street today as traders eye their
options expirations. They traded 14 million units today, up 55¢.

Air Canada was also featured on many trade tickets. Almost 9.2
million shares changed hands today. The stock closed up $1.05, after it
was announced that the carrier’s pilots will fight the deal. There is
speculation that they’ll launch their own competing bid.

The banks were one of the few weak areas today. And Seagram
was down in the media sector.

Montreal was not quite as buoyant as the TSE, finishing up 20 points.
Alberta was up 16 points. The VSE, the only area of weakness, finished
slightly down.

Traders in New York liked the oils and techs too, but were more
restrained than their Canadian counterparts. They remain hesitant
ahead of tomorrow’s PPI report.

Three members of the U.S. Federal Reserve Board spoke today. Their
comments were all generally received as benign to positive for interest
rates. Yet they had little positive impact on markets. The Dow finished
the day up 43 points. Unusually, that gain was matched by Nasdaq,
which had a great day. The S&P finished up 3 points.