The close: Bring on the second quarterRTGAM
If you place importance in the quarter-by-quarter blows of the stock market - and who doesn't? - the stats are now in. The first quarter of 2008 was volatile and it was a money loser, leaving investors caught between choruses of "stocks are cheap" and "there is worse to come.
"The S+P/TSX composite index fell 3.5 per cent, the Dow Jones industrial average fell 7.6 per cent, the S[amp]amp;P 500 fell 9.9 per cent, most of the major European indexes fell by double digits, and Japan's Nikkei 225 fell 18.2 per cent.But for investors, there was something about these statistics that smacked of old news.
On Monday, the last day of the quarter, the mood shifted to better times in the second quarter - or April, at the very least.The Dow closed at 12,262.73, up 46.33 points or 0.4 per cent. That, of course, includes Merck [amp]amp; Co. Inc.'s 14.7 per cent meltdown that accounted for 53 points. Ignore that, which isn't entirely unreasonable given that the pharmaceutical giant's problems failed to infect the rest of the market, and the Dow ended the quarter with close to a three-digit gain. Citigroup Inc. rose 2.8 per cent and Intel Corp. rose 1.9 per centIn Canada, the S[amp]amp;P/TSX composite index closed at 13,339.2, up 105.41 points or 0.8 per cent.
The Big Banks enjoyed a nice ride, with Royal Bank of Canada gaining 4.3 per cent and Toronto-Dominion Bank gaining 3.7 per cent.The big losers were the gold producers, which did not fare well as the price of gold fell to $921.50 (U.S.) an ounce, down $15. Barrick Gold Corp. fell 1.7 per cent and Goldcorp Inc. fell 1.5 per cent. Is that bad news? If gold soars with heightened fears about inflation and monetary collapse, then its retreat can be seen as a harbinger of better days ahead - well, until the second quarter begins on Tuesday.[amp]nbsp;[amp]nbsp;Copyright 2001 The Globe and Mail
Posts
