ag boom booms again

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    The close: Ag-boom booms again


    Friday, April 25, 2008


    If you thought that a day would pass when Potash Corp. of Saskatchewan Inc. would not drive markets – and headlines – Friday is not that day: The potash producer rose steadily, ending the day up 6.9 per cent, its biggest percentage gain in more than a month. It closed at $210.40, up $13.50, representing its biggest dollar-gain ever.

    As the biggest stock on the S[amp]amp;P/TSX composite index, in its weighting, Potash Corp. had a huge influence, adding 41 points. The index closed at 14,103.87, up 137.54 points or 1 per cent – meaning that Potash Corp. contributed about 30 per cent of the gains.

    The day was not just about potash, though. Crude oil rebounded from Thursday's sharp selloff after more tensions in the Middle East between the United States and Iran. Oil rose $2.45 (U.S.) a barrel to $118.52 and helped lift the share prices of most energy producers. EnCana Corp. rose 2.7 per cent, Suncor Energy Inc. rose 2.6 per cent and Canadian Natural Resources Ltd. rose 2.8 per cent.

    Research In Motion Ltd. was the biggest laggard by far, single-handedly knocking 17 points from the benchmark index. The stock fell 2.8 per cent after a report from Fortune.com suggested that the roll-out of a new BlackBerry model in the United States was being delayed.

    The Dow Jones industrial average closed at 12,891.86, up 42.91 points or 0.3 per cent. American Express Co. rose 5.7 per cent and Citigroup Inc. rose 3.3 per cent. On the downside, Microsoft was sideswiped after reported mixed financial results: its stock fell 6.2 per cent, its biggest percentage drop since Feb. 1.

    The broader S[amp]amp;P 500 closed at 1397.84, up 9.02 points or 0.7 per cent – outpacing the Dow by a wide margin. The better performance was due partly to the fact that the S[amp]amp;P 500 has a greater exposure to materials stocks, which were the big winners during the day. In particular, Monsanto Co. rose 5.5 per cent as investors scrambled for stocks connected to the agriculture theme after a sudden selloff on Thursday.
 
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