TSX Ends Higher On Iraq Concerns -- Canadian Commentary

(RTTNews) - Canadian stocks moved up to end at a six-year high Wednesday, tracking rising global equity markets, and led by energy stocks driven by the volatile situation in Iraq and worries the violence could likely disrupt oil supplies.

Investors also weighed the U.S. Federal Reserve two-day policy meet outcome with the the Federal Open Market Committee as expected, reduced the pace of monthly asset purchases by $10 billion to $35 billion.

Iraq continues to be of concern with fears the escalating violence could lead the country into civil war and a potential division. Islamic militants continued to advance towards Iraq's capital, having attacked the country's biggest oil refinery with machine gun fire and mortars, according to news reports. Refinery sources said a spare-parts warehouse at the periphery of the complex caught fire in the overnight attack.

Iraqi forces, backed by Shia and Kurdish militias, are reported to have retaken several towns and are holding back an advance by Sunni militants north of Baghdad. Fierce fighting is reported between government forces and heavily armed jihadists belonging to the al-Qaeda-linked Islamic State in Iraq and the Levant (ISIS) in several parts of the country.

The S&P/TSX Composite Index closed Wednesday at 15,109.25, up 53.36 points or 0.35 percent. The index scaled an intraday high of 15,115.38 and a low of 15,057.96, closing on its all-time high of 15,154.77 recorded on June 6, 2008.

Crude oil ended lower for a third day after the official weekly report from the Energy Information Administration showed crude oil stockpiles in the U.S. to have declined less than expected and on reports of continued fighting in Iraq with jihadists attacking the country's largest oil refinery.

The Energy Index gained 0.20, with U.S. crude oil futures for July delivery, the most actively traded contract, dropping $0.39 or 0.4 percent to close at $105.97 a barrel Wednesday on the Nymex.

Among energy stocks, Canadian Natural Resources Ltd. (CNQ.TO) added 0.51 percent, Talisman Energy Inc. (TLM.TO) gained 0.52 percent, Suncor Energy Inc.(SU.TO) dropped 0.02 percent, Cenovus Energy Inc. (CVE.TO) dipped 0.18 percent, and Encana Corporation (ECA.TO) surrendered 0.11 percent.

The Financial Index gained 0.29 percent with Royal Bank of Canada (RY.TO) up 0.24 percent, Toronto-Dominion Bank gained 0.44 percent, and Bank of Nova Scotia (BNS.TO) moved up 0.28 percent.

The Capped Healthcare Index dropped 0.21 percent with Extendicare Inc. (EXE.TO) down 0.54 percent, while Valeant Pharmaceuticals International, Inc. (VRX.TO) dropped 0.44 percent.

The Global Gold Index jumped 2.50 percent, with gold futures for August delivery edging up $0.70 to close at $1,272.70 an ounce Wednesday on the Nymex.

Among other gold stocks, B2Gold Corp. (BTO.TO) gained 3.61 percent, Yamana Gold Inc. (YRI.TO) added 2.16 percent, and Barrick Gold Corp. (ABX.TO) gained 1.83 percent.

The Capped Materials Index jumped 1.84 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.90 percent.

The Diversified Metals & Mining Index gained 0.70 percent, with Lundin Mining Corp. (LUN.TO) down 2.47 percent, First Quantum Minerals Ltd. (FM.TO) up 0.09 percent, and Teck Resources Limited (TCK.B.TO) up 3.05 percent.

The Information Technology Index moved 0.76 percent, with BlackBerry Limited (BB.TO) up 2.97 percent after confirming a deal with Amazon.com to gain access to the latter's Appstore for mobile devices.

Among other tech stocks, CGI Group Inc. (GIB.A.TO) was up 0.75 percent, Constellation Software Inc. (CSU.TO) up 1.61 percent, and Avigilon Corporation (AVO.TO) dipped 2.14 percent.

The Capped Industrials Index edged up 0.03 percent, with Bombardier Inc. (BBD.B.TO) down 52 percent and Air Canada (AC.B) down 0.96 percent.

Chartwell Retirement Residences (CSH.UN.TO) gained 0.92 percent after announcing a definitive agreement to sell four U.S. properties comprising 827 suites located in Alabama, Michigan, Oklahoma and Tennessee for $136.1 million.

Golden Minerals Co. (AUM.TO) surged 34.21 percent after revealing plans to restart mining at its Velardena Properties located in Durango state, Mexico in July 2014.

Energy Fuels Inc.(EFR.TO) dropped 2.88 percent after announcing the creation of a joint venture that will focus on the development or sale of the company's Copper King gold and copper project in Wyoming. Energy Fuels said it will own 50% of the new venture and the rest will be held by a private investor group.

In economic news from the U.S., the Federal Open Market Committee on Wednesday reduced the pace of monthly asset purchases by $10 billion to $35 billion, as expected. Additional tapering is likely if the labor market continues to show improvement and inflation picks up, the Fed said in a statement accompanying its decision. With the economy rebounding after a rough patch during the winter, the Fed is now on pace to halt bond buying altogether within the next few months.

Meanwhile, the U.S. current account deficit rose more than expected to $111.2 billion in the first quarter. Economists expected a deficit of $99.8 billion for the quarter, compared to a deficit of $81.1 billion in the fourth quarter.

From Europe, Bank of England policymakers unanimously decided to leave the key interest rates unchanged in June and once again hinted at a possibility of a rate hike as early as this year. At its monetary policy meeting held on June 4 and 5, all nine members of the Monetary Policy Committee voted to retain the record low 0.50 percent interest rate and quantitative easing at GBP 375 billion, the minutes showed Wednesday.