TSX Ends Lower On Global Cues, Gold Stocks - Canadian Commentary

(RTTNews) - Canadian stocks ended sharply lower Thursday, tracking declining global equity markets ahead of the Federal Open Market Committee policy meet next week. Investors anticipate a cut in the Federal Reserve's quantitative easing program, but modestly than previously expected. The main index was also impacted by gold stocks which were under selling pressure following weak bullion prices.

Asian markets were mixed following some weak economic data out of Japan and Australia, and caution ahead of the FOMC meeting. European markets ended mostly lower after eurozone industrial production declined at a faster-than-expected pace in July, driven by widespread weakness across sub-sectors.

The S&P/TSX Composite Index closed Thursday at 12,701.05, down 124.37 points or 0.97 percent. The index touched an intraday high of 12,825.41 and a low of 12,693.86.

The Diversified Metals & Mining Index declined 2.90 percent, with First Quantum Minerals Ltd. (FM.TO) down 2.16 percent, Osisko Mining Corp. (OSK.TO) down 2.85 percent, and Teck Resources Limited (TCK.B.TO) dropped 3.53 percent. Lundin Mining Corp. (LUN.TO) shed 1.64 percent.

The Capped Materials Index dived 3.50 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) down 0.52 percent and Agrium Inc. (AGU.TO) up 0.40 percent.

The Global Gold Index plunged 5.18 percent, with gold futures for December delivery plummeting $33.20 or 2.4 percent to close at $1,330.60 an ounce Thursday on the Nymex.

Among gold stocks, Barrick Gold Corp. (ABX.TO) plunged 5.26 percent, while Yamana Gold Inc. (YRI.TO) plummeted 4.51 percent. B2Gold Corp. (BTO.TO) dived 4.94 percent, while Goldcorp Inc. (G.TO) plunged 6.26 percent. Kinross Gold Corporation (K.TO) slipped 4.86 percent.

Crude oil prices ended higher after a report from the International Energy Agency indicated an improved demand outlook, even as supply concerns resurfaced with the Libyan crisis.

The Energy Index slipped 0.06 percent, with U.S. crude oil futures for October delivery gaining $1.04 or 1 percent to close at $108.60 a barrel Thursday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) shed 0.58 percent, Talisman Energy Inc. (TLM.TO) dropped 0.44 percent, and Suncor Energy Inc.(SU.TO) gained 1.50 percent. Enbridge Inc. (ENB.TO) slipped 0.19 percent.

The Financial Index surrendered 0.63 percent with Bank of Montreal (BMO.TO) down 0.77 percent and Manulife Financial Corp. (MFC.TO) dropping 1.50 percent. The Bank of Nova Scotia (BNS.TO) slipped 0.90 percent, while Toronto-Dominion Bank (TD.TO) fell 0.52 percent. Royal Bank of Canada (RY.TO) shed 0.69 percent.

The Information Technology Index shed 0.48 percent, with BlackBerry Limited (BB.TO) up 0.28percent.

The Capped Industrials Index dropped 0.41 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) down 1.78 percent.

Specialty apparel retailer Reitmans Canada Ltd. (RET.TO) plunged 10.40 percent after reporting a lower second-quarter profit of C$10.18 million or C$0.16 per share compared with C$27.64 million or C$0.42 per share in the same period last year..

Communications and media company Rogers Communications Inc. (RCI.TO, RCI) dropped 3.13 after announcing the appointment appointed Guy Laurence as its President and Chief Executive, effective December 2, 2013.

Food retail, real estate and corporate investment company Empire Company Ltd (EMP_A.TO) surrendered about 5 percent after reporting lower first-quarter net income of C$65 million or C$0.95 per share, compared with C$107.6 million or C$1.58 per share last year.

Power sports vehicles maker BRP Inc. (DOO.TO) shed 0.66 percent after reporting a lower second-quarter net income of C$7.6 million or C$0.07 per share compared with C$18.2 million or C$0.18.per share in the corresponding period last year.

Video infrastructure solutions provider Evertz Technologies (ET.TO) gained 3.22 percent even after reporting first-quarter net income of $11.8 million or $0.16 a share sharply down from $24.8 million or $0.34 a share last year.

In economic news, Statistics Canada said the New Housing Price Index rose 0.2 percent in July after registering an identical increase the previous month.

In economic news from the U.S., the Labor Department said initial jobless claims dropped to 292,000, a decrease of 31,000 from the previous week's unrevised figure of 323,000. The decrease came as a surprise to economists, who had expected jobless claims to climb to 330,000. With the unexpected decrease, jobless claims fell to their lowest level since hitting 291,000 in the week ended April 1, 2006.

Separately, the Labor Department import prices were unchanged in August after ticking up 0.1 percent in July. Economists had been expecting import prices to rise by about 0.5 percent. Meanwhile, export prices fell by 0.5 percent in August following a 0.1 percent drop in the previous month. Export prices had been expected to edge up by 0.1 percent.

Elsewhere, euro zone industrial production declined at a faster-than-expected pace in July driven by widespread weakness across sub-sectors, official data showed. Industrial output fell 1.5 percent in July from a month ago, reversing a 0.6 percent rise in June, Eurostat reported. It was forecast to fall by 0.3 percent.