Globe and Mail Update
Posted on Monday, July 4, 2011 2:13PM EDT
With the U.S. stock market closed for the July 4 celebrations on Monday, you might think that investors trading Canadian stocks in Toronto would take a cautious approach. Maybe nibble away at a few blue-chip, no-nonsense stocks that are unlikely to feel much influence from the U.S. market. Or maybe just sit and do nothing at all.
But no. I pointed out earlier thatSino-Forest Corp.(TRE-T4.311.1134.69%) is hopping, with investors following the lead of Wellington Management Co., which has taken a big stake in the Chinese forestry company. This suggests that some investors are willing to take on a considerable amount of risk at a time when Americans are barbecuing.
Okay, maybe that example has nothing to do with the U.S. market. But BlackBerry-maker Research In Motion Ltd.(RIM-T28.260.381.36%) sure does – and the stock is was up 2 per cent in afternoon trading, on no apparent news about the company.
And then there’s Yellow Media Inc.(YLO-T2.510.114.58%), the directories business whose share price fell 36.5 per cent in June on concerns about the company’s financial health. The stock rose 4 per cent on Monday.
These moves, and more, have left the broader S&P/TSX composite index up about 90 points or 0.7 per cent in afternoon trading – and the index had broken the three-digit barrier earlier in the day.
A quite day stateside doesn’t seem to mean much right now. Then again, the Canadian market was closed on Friday, when the U.S. market moved higher. The S&P 500 capped a five-day winning streak, rising 19 points or 1.4 per cent on Friday -- its biggest one-day gain in more than three months. Canadian stocks might have some catching up to do.