TSX Ends Higher On Mining, Gold Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks ended a tad higher for a fifth straight session Monday, amid some disappointing pending home sales from the U.S., despite lingering concerns over the situation in Ukraine and the Middle East.

The uptick was led mostly by mining, financial and gold stocks, with energy stocks down on some sluggish oil prices ahead of this week's interest rate announcement from the Federal Reserve.

The mood is cautious with investors looking ahead to a slew of U.S. economic data this week. The Fed is widely expected to reduce its quantitative easing by another $10 billion on Wednesday, dropping the size of the asset purchasing program down to $25 billion per month.

In the Middle East, the 24-hour ceasefire seem to have come unstuck with reports of renewed fighting as both Israel and Hamas accused each other of violating the temporary truce.

The S&P/TSX Composite Index closed Monday at 15,445.22, up 9.82 points or 0.06 percent. The index scaled a intraday high of 15,465.29 and a low of 15,406.10.

On Friday, Canadian stocks ended at new high amid some upbeat durable goods data from the U.S., with lingering concerns over Ukraine and the Middle East.

U.S. crude oil ended lower after some disappointing pending home sales data from the U.S. and waning demand from Europe and Asia, even as investors await the Federal Reserve's monetary policy later in the week.

The Energy Index shed 0.81 percent, with U.S. crude oil futures for September delivery shedding $0.42 or 0.4 percent to close at $101.67 a barrel Monday on the Nymex.

Among energy stocks, Encana Corp. (ECA.TO) up 0.04 percent, Talisman Energy Inc. (TLM.TO) down 0.68 percent, Canadian Natural Resources Ltd. (CNQ.TO) dipped 1.31 percent, Suncor Energy Inc. (SU.TO) added 0.61 percent, and Cenovus Energy Inc. (CVE.TO) dropped 0.91 percent.

Athabasca Oil Corp. (ATH.TO) plunged 6.83 percent after announcing it is in the process of closing its option to sell a 40 percent stake in Dover oil sands project to PetroChina, with the deal valued about around $1.23 billion.

The Financial Index gained 0.25 percent with Toronto-Dominion Bank up 0.50 percent, National Bank of Canada (NA.TO) up 0.83 percent, Bank of Nova Scotia (BNS.TO) up 0.37 percent, and Royal Bank of Canada (RY.TO) edging down 0.03 percent.

The Capped Healthcare Index added 0.33 percent with Valeant Pharmaceuticals International, Inc. (VRX.TO) up 0.45 percent, Catamaran Corp. (CCT.TO) down 0.35 percent, and Extendicare (EXE.TO) up 1.36 percent.

Global Gold Index added 0.78 percent, with gold futures for August delivery ending flat to close at $1,303.30 an ounce Monday on the Nymex.

Among gold stocks, Goldcorp Inc. (G.TO) gained 0.79 percent, Yamana Gold Inc. (YRI.TO) added 0.78 percent, Barrick Gold Corp. (ABX.TO) slipped 0.10 percent, Eldorado Gold Corp. (ELD.TO) down 1.07 percent, and Kinross Gold Corp. (K.TO) added 0.67 percent.

The Capped Materials Index jumped 2.09 percent on gold mining stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) moving up 0.13 percent.

The Diversified Metals & Mining Index added 1.10 percent, with Lundin Mining Corp. (LUN.TO) up 1.75 percent, Teck Resources Limited (TCK.B.TO) up 1.66 percent, and First Quantum Minerals Ltd. (FM.TO) up 2.21 percent.

The Capped Industrials Index shed 0.60 percent, with Canadian Pacific Railway Ltd.(CP. TO) dropping 1.11 percent, Bombardier Inc. (BBD.B.TO) down 1.10 percent, SNC-Lavalin Group Inc. (SNC.TO) down 1.23 percent, and Ballard Power Systems Inc. (BLD.TO) up 3.79 percent.

The Capped Telecommunications Index gained 0.24 percent, with Telus Corp. (T.TO) slipping 0.45 percent, BCE Inc. (BCE.TO) adding 0.43 percent, and Bell Aliant Inc. (BA.TO) up 0.48 percent.

Rogers Communications Inc. (RCI.B.TO) and GLENTEL (GLN.TO) extended their multi-year agreement to offer Rogers products and services in GLENTEL's 485 retail locations across Canada. Rogers Communications added 0.05 percent, are down marginally, while Glentel gained 0.73 percent.

The Information Technology Index dropped 0.73 percent, with BlackBerry Limited (BB.TO) down 3.33 percent and CGI Group Inc. (GIB.A.TO) up 0.05 percent.

Celestica Inc. (CLS.TO) shed 2.31 percent after reporting a second quarter profit of 22 cents a share, compared to 15 cents in the year ago quarter.

Atco Limited (ACO.X.TO) edged down 0.12 percent after reporting second quarter adjusted earnings of $57 million in 2014 compared to $89 million in 2013. The stock is up marginally.

Canadian Utilities Limited (CU.TO) added 0.17 percent after reporting second quarter adjusted earnings of $85 million in 2014 compared to $131 million in 2013.

In economic news from the U.S., a report from the National Association of Realtors on Monday showed pending home sales index dropped 1.1 percent to 102.7 in June after surging up by 6 percent to 103.8 in May. Economists expected sales to increase by another 0.5 percent.

A pending home sale is one in which a contract is signed but not closed. Normally, it takes four to six weeks to close a contracted sale.

The Fed will be out with its latest rate call on Wednesday, the highlight of a busy week that also includes the July non-farm payrolls report and U.S. GDP figures.