Laurent Beaudoin (R), chairman of the board, of Bombardier Inc., and CEO Pierre Beaudoin smile prior to the company's annual general meeting in Montreal in a June 1, 2011 file photo. Bombardier Inc Chairman Laurent Beaudoin is retiring after more than 50 years as part of a management shuffle that also brings in a new chief executive at a time when the company is struggling with delays in its CSeries jet program.CHRISTINNE MUSCHI/Reuters
The Toronto stock market was positive Thursday morning with investors focused on a cease-fire deal in Ukraine and a major corporate shakeup at transportation giant Bombardier Inc.
The S&P/TSX composite index was up 59.76 points to 15,211.26. Bombardier shares tumbled 34 cents or 11.2 per cent to $2.70 after it said that longtime chairman Laurent Beaudoin is stepping down. Bombardier is also suspending its dividend and plans to issue up to $2.5-billion of securities to bolster its cash reserves. Bombardier has faced a string of delays related to its new CSeries jetliner.
The Canadian dollar was ahead 0.52 of a cent to 79.63 cents (U.S.).
U.S. indexes were also positive as France and Germany brokered a deal that will see a ceasefire take effect in Ukraine on Sunday. The Dow Jones industrials gained 21.42 points to 17,883.56, the Nasdaq composite index was ahead 29.86 points to 4,831.04 and the S&P 500 index was up 7.74 points to 2,076.27.
Insurance stocks also weighed on the TSX in the wake of earnings misses from Manulife Financial and Sun Life Financial.
Manulife earned $640-million (Canadian) or 33 cents per diluted share in the fourth quarter of last year compared with a profit of $1.3-billion or 68 cents a year earlier. The insurer said its core earnings per share amounted to 36 cents per diluted share, five cents below estimates. It also said that macroeconomic factors including low interest rates "produces headwinds in 2015."
Sun Life's net income dropped to $502-million or 81 cents per diluted share from $550-million or 90 cents in the same 2013 period. Total revenue was $7.38-billion, up from $4.71-billion in the same 2013 quarter. On an adjusted basis, Sun Life reported underlying net income of $360-million or 59 cents per share, missing estimates of 78 cents per share.
Manulife fell 60 cents to $21.24 while Sun Life lost $1.51 to $40.45.
There was also further evidence of how the collapse in oil prices is forcing companies to quickly cut costs. Cenovus Energy expects to cut its workforce by about 15 per cent, the bulk of which it says will come from its contractors. Its shares climbed 17 cents to $24.85.
Prices have slid about 50 per cent from the highs of last summer amid a huge supply/demand imbalance.
On Thursday, the energy sector was ahead two per cent as March crude gained $1.54 to $50.38 a barrel after falling $4 over the last two sessions amid the latest sign of rising inventories in the U.S.
The base metals sector ran up 2.5 per cent while April copper gained five cents to $2.59 a pound.
The gold sector improved 0.6 per cent while April bullion rose $6.80 to $1,226.40 an ounce.
The Greek debt crisis also vied for investor attention after the country's talks with euro zone creditors on overhauling its bailout loans broke down.
Still, markets were optimistic a deal will be reached in time for Greece to avoid a potential exit from the euro.