Net income is declining in the second quarter

Tag : base metals
With base metal miners rising on news of a major merger, theS&P/TSX Composite Index inched higher by 38.59 points to 13,342.23.With the advance, the main index stayed away from last week'smulti-month lows.

Crude oil prices plunged again on Tuesday and reached a 12-weeklow. Light sweet crude for September delivery closed at $122.19,down $2.54 on the session. Prices moved as low as $120.42, oil'slowest mark since early May.

The September contract fell below its 50-day moving average withTuesday's decline. The next key psychological support may be foundat the $120 mark. Crude has not traded below that level since May7.

Energy stocks fell 2 percent. Talisman Energy Inc. (TLM.TO)announced a 23% decline in second quarter net income to C$426million from C$550 million last year. Talisman shares fell lessthan one percent.

Gold dropped to a five-week low on Tuesday as the dollarstrengthened versus other majors. August gold closed at $916.50,down $11.20 on the session. Prices touched as low as $913.10 inmid-morning dealings. Canadian gold stocks dropped 3 percent.

On the flip side, base metal miners rose 3.3 percent after TeckCominco Limited (TCK.B.TO), the world's leading producer of zincand metallurgical coal, said on Tuesday that it has agreed toacquire Fording Canadian Coal Trust (FDG-UN.TO) in a cash-and-stockdeal worth about US$14 billion.

Fording shares rose 7.8 percent, while Teck added 5.6 percent.

Telecom giant Rogers Communications (RCI.B.TO) reported secondquarter earnings of $301 million, up from a loss of $56 million inthe same quarter last year. Operating revenue grew 11 percent to$2.8 billion. Rogers stock fell 7 percent.

On the flip side, tech stocks are up 2 percent. IT firm CGI GroupInc. (GIB.A.TO) reported third-quarter net income of C$81.7 millionor C$0.25 per share, compared to C$64.4 million or C$0.19 per sharelast year. CGI shares picked up more than 7 percent.

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