July 29, 2008 at 3:00 pm by Tom Lydon
Canada’s main stock index is on the upswing, lending upward mobility to related exchange traded funds (ETFs).
A share sale by Merrill Lynch (MER) boosted confidence that financial firms in Canada can withstand failed housing-related investments, reports John Kipphoff for Bloomberg.
Royal Bank, the country’s biggest lender, fell 0.9% on Monday, but is gaining today.
United Steelworkers union members participated in a walkout on Potash’s Cory mine to set up a picket line and demand contract negotiations. Union members at Cory total of 500 workers over three mines. They want better pay and benefits as the company’s profit spikes from sales of crop nutrients, reports Christopher Donville for Bloomberg.
Earnings at Potash have soared as prices have more than doubled, and second-quarter profit rose to $905.1 million. A week after this news, the walkout began. The world’s largest producer of potash, a fertilizer, is facing disrupted production now.
iShares MSCI Canada (EWC) could reflect most of this news. Potash CP Saskatchewan (POT) is 4.9% of the fund, which is down 5% year-to-date.
Market Vectors Agribusiness (MOO) also holds 8.4% of Potash. It’s down 4.3% year-to-date.
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