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Toronto Stock Exchange Follows New York's Lead Amid IBM's Hostile Bid for Lotus Development

Strategic Insights

— 3 min read

The Toronto Stock Exchange's 300-stock composite index rose 13.69 points to 4,463.49, in line with the New York Stock Exchange's record-breaking performance. The news of IBM's hostile bid for Lotus Development Corp. sparked a surge in the Nasdaq composite index, which reached a new high of 882.85, its third largest single-day gain ever.

Key Takeaways:

  • The Toronto Stock Exchange's 300-stock composite index rose 13.69 points to 4,463.49, a moderate gain compared to the New York Stock Exchange's record-breaking performance.
  • The news of IBM's hostile bid for Lotus Development Corp. led to a 9.88-point surge in the Nasdaq composite index, reaching a new high of 882.85, its third largest single-day gain ever.
  • Advances on the Nasdaq Stock Market doubled declines, with 1,566 advances to 734 declines, and the Standard & Poor's 500-stock index rose 3.11 points to a new record of 535.62.
  • Metals paced the market on the Toronto Stock Exchange, rising 0.82 per cent on the back of a 75-cent gain to $35.37 in Inco shares.
  • Merchandising and industrial products also contributed to the gain, with Hudson's Bay leading the merchandisers with a rise of 25 cents to $25.62.
  • Transports, down 0.72 per cent, and consumer products, which slipped 0.39 per cent, were among the losing groups, with Seagram being the major problem in the latter category.
  • Seagram's shares dropped 75 cents to $41.25 due to reports that talks between Seagram and Michael Ovitz, a possible head of MCA Inc., have collapsed.
  • Blue Range Resource's profit for the three months ended March 31 contracted to $638,000 from $1,219,000 a year earlier, leading to a decline in its A shares by 12 cents to $10.37.
  • Potash Corp. of Saskatchewan advanced 62 cents to $63.37, with Lehman Bros. beginning coverage with an outperform investment rating.
  • The Montreal Exchange continued its record-setting ways, with a 9.1-point rise to 2,196.3, eclipsing the previous record of 2,194.32.

Statistics:

  • The Dow Jones industrial average rose 32.16 points to a record 4,476.55.
  • Boeing gained $2.75 to $61.75, while Merck climbed $1.75 to $49.12 and United Technologies increased $2.12 to $77.50.
  • IBM stocks took a dive, falling $2.87 to $91, despite the company's hostile bid for Lotus Development Corp.
  • Advances on the Nasdaq Stock Market doubled declines, with 1,566 advances to 734 declines.
  • The Standard & Poor's 500-stock index rose 3.11 points to a new record of 535.62.
  • Metals rose 0.82 per cent, with Inco shares gaining 75 cents to $35.37.
  • Merchandising and industrial products contributed to the gain, with Hudson's Bay rising 25 cents to $25.62.
  • Transports, down 0.72 per cent, and consumer products, which slipped 0.39 per cent, were among the losing groups.
  • Seagram's shares dropped 75 cents to $41.25.
  • Blue Range Resource's profit contracted to $638,000 from $1,219,000 a year earlier.
  • Potash Corp. of Saskatchewan advanced 62 cents to $63.37.
  • The Montreal Exchange's 9.1-point rise to 2,196.3 set a new record, eclipsing the previous record of 2,194.32.

Sources:

  • "Toronto again played the poor relation to its rich cousin in New York, which surged ahead yesterday in response to expectations of interest rate cuts and news of IBM's play for Lotus Development Corp." (Source: No specific source provided)
  • "The Toronto Stock Exchange's 300-stock composite index rose 13.69 points to 4,463.49" (Source: No specific source provided)
  • "Advances doubled up on declines 1,566 to 734 on the New York Stock Exchange" (Source: No specific source provided)
  • "Metals paced the market, rising 0.82 per cent on the back of a 75-cent gain to $35.37 in Inco shares" (Source: No specific source provided)
  • "Fred Meissner, technical analyst with Robinson-Humphrey Co. Inc. in Atlanta" (Source: No specific source provided)

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