TSX Ends Lower On Ukraine, Energy Shares -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Thursday, dragged down by energy shares after oil prices slumped. Investors mulled over some encouraging economic data from the U.S. and China, even as concerns persisted that Russian separatists in Ukraine will go ahead with a referendum on sovereignty.

The market remained cautious with investors reacting to a slew of earnings reports, besides keeping an eye on global economic news.

A U.S. Labor Department report showed initial jobless claims fell more than expected last week. Meanwhile, China's exports as well as imports increased in April defying expectations, vindicating the government's reluctance to introduce more stimulus to cushion recovery.

The European Central Bank left monetary policy unchanged, as expected. The Bank of England too retained its interest rate at a historic low.

The S&P/TSX Composite Index closed Thursday at 14,546.03, down 110.37 points or 0.75 percent. The index scaled an intraday high of 14,693.15 and a low of 14,512.12.

On Wednesday, the index ended higher after the testimony of U.S. Federal Reserve Chief Janet Yellen before the Congress and Russian President Vladimir Putin's comment on a peaceful resolution to the Ukraine crisis.

Crude oil ended lower with investors mulling over the supply scenario after total crude inventories in the U.S. continued aggregate close to the record highs last week.

The Energy Index plunged 2.76 percent, with U.S. crude oil futures for June delivery dropping $0.51 or 0.5 percent to close at $100.26 a barrel Thursday on the Nymex.

Among other energy stocks, Husky Energy Inc. (HSE.TO) shed 0.80 percent, Canadian Natural Resources Ltd. (CNQ.TO) dived 3.33 percent, and Suncor Energy Inc. (SU.TO) slipped 2.22 percent.

Canadian Oil Sands Limited (COS.TO) slipped 1.71 percent, while Talisman Energy Inc. (TLM.TO) dropped 3.83 percent.

BlackPearl Resources Inc. (PXX.TO) plummeted 9.48 percent after the oil explorer cut its first-quarter production fell short of projections.

The Capped Healthcare Index shed 1.53 percent as Catamaran Corp. (CCT.TO) dropped 3.03 percent,

Valeant Pharmaceuticals International, Inc. (VRX.TO) shed 2.06 percent, after the company narrowed its loss to $22.6 million or $0.07 per share in the first quarter, from a loss of $27.5 million or $0.09 per share in the previous year.

Gold futures ended lower on some positive data from the U.S. and China, even as the precious metal found support with the prevailing uncertainty in Ukraine.

The Global Gold Index dropped 0.84 percent, with gold futures for June delivery declining $1.20 or 0.1 percent to close at $1,287.70 an ounce Thursday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) dropped 1.76 percent, Osisko Mining Corp. (OSK.TO) dipped 0.25 percent, Barrick Gold Corp. (ABX.TO) slipped 1.28 percent, and Agnico Eagle Mines Limited (AEM.TO) gained 0.17 percent.

Kinross Gold Corp. (K.TO) dropped 0.92 percent after reporting its adjusted net earnings for first quarter declined to $34.1 million or $0.03 per share from $172.4 million or $0.15 per share in the prior-year quarter.

The Capped Materials Index fell 0.43 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.05 percent.

The Financial Index dipped 0.01 percent with the Toronto-Dominion Bank (TD.TO) up 0.27 percent, Royal Bank of Canada (RY.TO) up 0.12 percent, The Bank of Nova Scotia (BNS) up 0.23 percent, and Bank of Montreal (BMO.TO) gained 0.19 percent.

The Diversified Metals & Mining Index gained 1.23 percent, with Lundin Mining Corp. (LUN.TO) up 1.10 percent, First Quantum Minerals Ltd. (FM.TO) up 2.85 percent, and Teck Resources Limited (TCK.B.TO) up 0.62 percent.

The Information Technology Index surrendered 1.32 percent, with BlackBerry Limited (BB.TO) ending flat at $7.94 a share.

Among other tech stocks, Constellation Software Inc (CSU.TO) dropped 0.67 percent, while Celestica Inc. (CLS.TO) slipped 1.30 percent.

Avigilon Corp. (AVO.TO) plummeted 14.68 percent.

The Capped Industrials Index gave up 0.33 percent, with Bombardier Inc. (BBD.B.TO) down 1.67 percent and Air Canada (AC.B) up 1.33 percent.

In corporate news, Cineplex Inc. (CGX.TO) moved up 0.68 percent after reporting first quarter net profit of $5.1 million, down 42.5 percent from $8.8 million in the same quarter last year.

Pacific Rubiales Energy Corp. (PRE.TO) dropped 3.94 percent after reporting lower earnings. The company's first-quarter net earnings decreased to $119.2 million or $0.38 per share, from $127.4 million or $0.40 per share, last year.

Quebecor Inc (QBR.A.TO) dropped 0.15 percent after reporting first-quarter net earnings of C$40.7 million, compared with C$35.6 million last year. Earnings per share rose to C$0.29 from C$0.24 in the prior-year quarter.

Industrial Alliance Insurance and Financial Services Inc. (IAG.TO) shares dropped 0.73 percent after the company said first-quarter net income attributable to shareholders rose to C$90.0 million from C$88.4 million in the prior year.

Telus Corp. (T.TO) gained 1.01 percent after the company reported first-quarter net income of C$377 million, up from last year's C$362 million, with earnings per share improving to C$0.60 from C$0.55 in the same quarter last year.

Shares of automotive supplier Magna International Inc. ( MG.TO) dropped 1.12 percent after the company reported first quarter net income rose to $393 million, from last year's $369 million, with earnings per share increasing to $1.76 from $1.57 in the first quarter of 2013.

Canexus Corporation (CUS.TO) shares are down 0.85 percent. The company reported cash operating profit for the first quarter of $25.9 million, compared to $30.3 million in the first quarter last year.

SNC-Lavalin Group Inc. (SNC.TO) is up 0.06 percent on strong results and earnings outlook, with a first quarter profit of 62 cents per share, up from a profit of 35 cents per share a year ago. The company raised its earnings guidance for the year to a range of $2.80 - $3.05 per share, up from earlier guidance of $2.25 - $2.50 per share.

Energy stock Bankers Petroleum (BNK.TO) ended flat at $6.11 a share, after the company reported a sharp 76 percent rise in net income at $24.99 million for the first quarter.

Bank of Nova Scotia (BNS.TO) gained 0.23 percent. Bank of Nova Scotia and Canadian Tire Corp. Ltd. (CTC.TO) announced a strategic partnership, pursuant to which Scotiabank will purchase a 20 percent stake in Canadian Tire's financial services business for $500 million cash. Canadian Tire Corp. (CTC.A.TO) shares are up 0.15 percent.

On the economic front, the data from Statistics Canada showed new housing price index to have risen 0.2 percent in March, following an identical rise a month earlier.

In economic news from the U.S., a report from the Labor Department showed initial jobless claims fell more than expected last week. The data showed initial jobless claims fell to 319,000, a decrease of 26,000 from the previous week's revised level of 345,000. Economists expected jobless claims to drop to 325,000 from the 344,000 originally reported for the previous week.

China's trade surplus more than doubled to $18.46 billion in April from $7.71 billion in March. This exceeds the $17.7 billion surplus forecast by economists. Exports gained 0.9 percent in April from last year. Shipments were forecast to fall 2 percent after declining 6.6 percent in March. Likewise, imports rose 0.8 percent, confounding expectations for a 2.1 percent drop. The increase reversed some of the 11.3 percent fall in March.

Meanwhile, the European Central Bank kept its key interest rates unchanged for the sixth consecutive month, despite deflation risks. ECB President Mario Draghi said policy makers were open to unprecedented easing measures in June if the euro strengthens or deflationary pressures persist.

The Bank of England too retained its interest rate at a historic low, besides stating that rates will not be raised before the second quarter of 2015.

Germany's industrial production dropped unexpectedly in March largely driven by contraction in construction activity. In a first decline in five months, industrial production dropped 0.5 percent in March from February, Destatis reported. Production was up 0.6 percent in February and 0.4 percent higher in January. On a yearly basis, overall industrial production grew 3 percent in March, but slower than the 4.4 percent rise forecast by economists.