06.11.2013 22:48:17

TSX Ends Higher On Gold Stocks - Canadian Commentary

(RTTNews) - Canadian stocks ended a shade higher Wednesday, tracking mostly rising equity markets in the U.S. and Europe, led by gold mining stocks with steady commodities, with investors digesting a slew of mixed earnings. Investors awaited cues from Thursday's ECB meeting and U.S. employment data due out later in the week for further direction, with hopes the Federal Reserve may hold back its tapering plans.

Asian markets turned in a mixed performance on some upbeat U.S. data fueled speculation that the Fed may start tapering stimulus by the end of the year. Meanwhile, European markets ended higher with investor sentiments reflecting some encouraging earnings news from the region.

The S&P/TSX Composite Index closed Wednesday at 13,380.41, up 18.70 points or 0.14 percent. The index touched an intraday high of 13,412.33 and a low of 13,351.28.

The Information Technology Index gained 0.09 percent, with smartphone maker BlackBerry Limited (BB.TO) shedding 0.86 percent.

The Diversified Metals & Mining Index added 0.89 percent, with First Quantum Minerals Ltd. (FM.TO) up 0.96 percent, Osisko Mining Corp. (OSK.TO) up 2.58 percent, and Lundin Mining Corp. (LUN.TO) down 0.21 percent. Teck Resources (TCK_B.TO) gained 0.91 percent.

The Capped Materials Index gained 0.51 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) dropping 0.65 percent.

The price of gold was recovering from its three-week low Wednesday morning with the US dollar trading mixed amid doubts over when the U.S. Federal Reserve would begin scaling back its stimulus measures.

The Global Gold Index gained 1.24 percent, with gold futures for December delivery, the most actively traded contract, adding $9.70 or 0.7 percent to close at $1,317.80 an ounce Wednesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) gained 0.80 percent, while Goldcorp Inc. (G.TO) added 1.08 percent. Kinross Gold Corp. (K.TO) gained 1.93 percent, while Eldorado Gold Corp. (ELD.TO) gathered 2.43 percent. B2Gold Corp. (BTO.TO) added 1.20 percent, while Barrick Gold Corp. (ABX.TO) slipped 0.16 percent.

Oil prices rebounded strongly to end sharply higher Wednesday, after an official weekly oil report from the Energy Information Administration showed U.S. crude oil inventories to have risen last week, albeit less than what analysts expected.

The Energy Information Administration's weekly oil report showed U.S. crude oil inventories to have gained 1.60 million barrels, while gasoline stocks shed 3.80 million barrels in the week ended November 1. Analysts expected crude oil inventories to add 1.90 million barrels and gasoline stocks to shed 0.30 million barrels last week.

The Energy Index lost 0.47 percent, with U.S. crude oil futures for December delivery, the most actively traded contract, surging $1.43 or 1.5 percent to close at $94.80 a barrel Wednesday on the Nymex.

Tuesday after the market hours, the API said US crude oil inventories moved up 0.87 million barrels and gasoline stocks fell 4.30 million barrels in the weekended November 01.

Among energy stocks, Imperial Oil Limited (IMO.TO) moved up 0.49 percent, while Encana Corp. (ECA.TO) gained 1.20 percent. Canadian Natural Resources Limited (CNQ.TO) moved up 0.22 percent, Suncor Energy (SU.TO) ended flat at $36.69 a share.

The Financial Index gained 0.35 percent with Bank of Montreal (BMO.TO) up 0.36 percent, while Manulife Financial Corp. (MFC.TO) gained 0.21 percent. The Bank of Nova Scotia (BNS.TO) gained 0.52 percent, while Toronto-Dominion Bank (TD.TO) edged up 0.28 percent. National Bank of Canada (NA.TO) added 0.57 percent, while Royal Bank of Canada (RY.TO) gained 0.14 percent.

The Capped Industrials Index edged down 0.01 percent, with Air Canada (AC.B.TO) diving 7.03 percent, while Bombardier Inc. (BBD.A.TO, BBD.B.TO) added 2.87 percent.

Penn West Petroleum (PWT.TO) plunged 16.25 percent despite reporting a swing to profit in third-quarter, with net income of C$27 million compared to a loss of C$67 million last year. Profit per share was C$0.06 compared to a loss of C$0.14 per share a year ago.

Oil and gas pipelines operator Enbridge Inc. (ENB.TO) gathered 1.66 percent after reporting a much improved third-quarter, with net earnings of C$421 million compared with C$187 million last year. On a per share basis, the company reported earnings of C$0.51 per share compared with C$0.24 per share a year ago

Talisman Energy (TLM.TO) shed 2.65 percent after reporting a third-quarter net loss that narrowed to $54 million or $0.08 per share from $731 million or $0.71 per share in the same quarter last year.

Gold miner Iamgold (IMG.TO) dropped 1.93 percent after reporting a sharply lower third-quarter net income of $25 million or $0.07 per share compared with $78 million or $0.21 per share last year. Adjusted earnings were $26 million or $0.07 per share compared with $60 million or $0.16 per share a year ago. Analysts estimated earnings of $0.06 per share.

Mining company Centamin plc (CEE.TO) lost 4.82 percent after reporting its third quarter profit declined to $29.68 million from last year's $60.16 million, with earnings per share dropping to 2.698 cents from the prior year's 5.522 cents.

Automotive supplier Magna International (MG.TO) gained 1.36 percent after posting lower third-quarter net income of $319 million or $1.39 per share versus last year's $390 million or $1.66 per share. The company's board declared a quarterly dividend of $0.32 per share.

Fertilizer distributor Agrium, Inc. (AGU.TO) dropped 0.50 percent after reporting a lower third quarter profit of $76 million or $0.52 per share compared to $129 million or $0.80 per share last year. Adjusted earnings were $73 million or $0.50 per share, with analysts anticipating earnings of $0.57 per share for the quarter.

In economic news, Statistics Canada said contractors took out $6.5 billion worth of building permits in September, up 1.7 percent from August.

In economic news from the U.S., a Conference Board report on Wednesday showed the U.S. economy to have expanded modestly before the government shutdown, with its index of leading economic indicators rising in line with estimates in September. The leading economic index rose by 0.7 percent in September following a matching increase in August. The increase was in line with economists' estimates.

In economic news from the eurozone, Germany's private sector growth remained unchanged in October, final survey data from Markit Economics showed. At 53.2 in October, the seasonally adjusted final composite output index which measures the combined output of the manufacturing and service sectors - was unchanged from September and comfortably above the 50.0 no-change value, it said Wednesday. The flash reading for October was 52.6.

Germany's factory orders grew 3.3 percent in September from the previous month driven by robust foreign demand, official data showed. Orders were forecast to grow 0.5 percent, following a 0.3 percent drop in August.

Meanwhile, eurozone private sector business activity expanded at a slightly faster pace than previously estimated in October, detailed results of a survey by Markit Economics showed. However, the rate of expansion remained weaker than that of September. The composite output index, an indicator that measures performance of both manufacturing and service sectors, came in at 51.9, higher than the flash reading of 51.5. In September, the index stood at 52.2, a 27-month high.

Eurozone retail sales declined slightly more than expected in September driven by the weakness in both food and non-food product turnover. The volume of retail sales dropped 0.6 percent month-on-month, reversing the 0.5 percent rise in August, Eurostat reported. Economists had forecast sales to fall 0.4 percent in September.

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