Toronto Stock Exchange plunges after surprise tax announcement by Feds

[Guest guest]

TSX plunges after Ottawa changes trust tax

 

Income trust investors suffered tremendous losses Wednesday after

the federal government's surprise announcement that the structure

will be taxed.

 

The Toronto stock market's main composite index plunged more than

300 points at the start of trading before recovering slightly on

Wednesday.

Later in the morning, the market was off 223.23 points at 12,123.36,

a decline of 1.8 per cent.

The loss was much steeper for trusts, with the S & P/TSX income trust

index down 10.5 per cent.

" That is a huge decline for the Toronto Stock Exchange today, but

not a surprise, " CTV's Business Editor Linda Sims told Newsnet.

" About 12 per cent of the composite is made up of income trusts so

they are getting hammered and taking the TSX down about with it. "

Under the proposed rules announced by Finance Minister Jim Flaherty,

Ottawa would apply a new tax on the money distributed to

shareholders by newly formed income trusts, which would shift the

tax burden to investors.

The announcement sent Canadian stocks plunging on Wednesday after

the anticipation of trust conversions among companies such as BCE

Inc. and Telus Corp. earlier sent shares jumping in value.

Early casualties included the two telecom giants, which both

announced plans to convert in the last two months.

Telus shares were down 14 per cent while BCE shares fell 12 per cent.

 

 

 

 

MMP in D4 combust Transiting L2 Venus and L12 FM Sun are exactly

conjunct MEP 2 of the Canada Union chart at the opening of the

Toronto Stock Exchange this morning.

 

With my best wishes, Chuck

[Guest guest]

Dear Chuck,

 

Thanks for the post on this.

 

On the DJIA, I reckon tomorrow is the day to start going heavy long and hold into next week.

 

 

Best regards,

 

Vyas Munidas

 

 

 

-

wakefieldvedic

SAMVA

Wednesday, November 01, 2006 2:11 PM

Toronto Stock Exchange plunges after surprise tax announcement by Feds

 

 

TSX plunges after Ottawa changes trust taxIncome trust investors suffered tremendous losses Wednesday after the federal government's surprise announcement that the structure will be taxed.The Toronto stock market's main composite index plunged more than 300 points at the start of trading before recovering slightly on Wednesday.Later in the morning, the market was off 223.23 points at 12,123.36, a decline of 1.8 per cent.The loss was much steeper for trusts, with the S & P/TSX income trust index down 10.5 per cent."That is a huge decline for the Toronto Stock Exchange today, but not a surprise," CTV's Business Editor Linda Sims told Newsnet."About 12 per cent of the composite is made up of income trusts so they are getting hammered and taking the TSX down about with it."Under the proposed rules announced by Finance Minister Jim Flaherty, Ottawa would apply a new tax on the money distributed to shareholders by newly formed income trusts, which would shift the tax burden to investors.The announcement sent Canadian stocks plunging on Wednesday after the anticipation of trust conversions among companies such as BCE Inc. and Telus Corp. earlier sent shares jumping in value.Early casualties included the two telecom giants, which both announced plans to convert in the last two months.Telus shares were down 14 per cent while BCE shares fell 12 per cent.MMP in D4 combust Transiting L2 Venus and L12 FM Sun are exactly conjunct MEP 2 of the Canada Union chart at the opening of the Toronto Stock Exchange this morning.With my best wishes, Chuck