TSX Ends Higher As Gold, Energy Stocks Gain -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a three-day loss to end higher on Wednesday after the sell-off yesterday, on bargain hunting and driven by gains in some key sectors led by gold, industrial, energy and info tech stocks.

Nevertheless, investors continued to worry over the likely interest rate hike by the U.S. Federal Reserve that is expected soon.

Markets in Europe ended solidly in the green Wednesday, rebounding from the recent pull back. The markets have been helped by a weaker euro, which has translated into gains for exporters. Investors continued to monitor the situation in Greece, as representatives of the Greek government and the country's international creditors scheduled to meet for a technical discussion later today, linked to the country's economic reforms and further funding.

Markets in the United States ended in the red after flirting in positive territory earlier in the session, as investors continued to track the surge in the value of the U.S. dollar. Trading activity was also somewhat subdued, as a lack of major U.S. economic data has kept some traders on the sidelines.

The benchmark S&P/TSX Composite Index closed Wednesday at 14,739.20, up 97.44 points or 0.67 percent. The index scaled an intraday high of 14,778.92 and a low of 14,637.62.

On Tuesday, the index closed down 212.73 points or 1.43 percent, at 14,641.76. The index scaled an intraday high of 14,784.72 and a low of 14,627.97.

Gold futures ended at a four-month low after the dollar continued to climb toward parity with the euro with persistent worries over Europe and in expectation of the Fed Reserve hiking interest rates sooner than later.

The Gold Index jumped 4.17 percent, with gold for April delivery dropping $9.50 or 0.8 percent to settle at $1,150.60 an ounce on the New York Mercantile Exchange Wednesday.

Among gold stocks, Goldcorp (G.TO) gained 2.89 percent and Kinross Gold Corp (K.TO) added 2.72 percent. Eldorado Gold Corp. (ELD.TO) moved up 3.24 percent, Yamana Gold Inc. (YRI.TO) jumped 5.09 percent, B2Gold (BTO.TO) gathered 5.95 percent, and IAMGOLD (IMG.TO) surged 8.77 percent.

The Capped Materials Index gained 1.71 percent on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) shedding 0.31 percent and Agrium Inc. (AGU.TO) up 0.56 percent.

Franco-Nevada (FNV.TO) gathered 4.82 percent, while Agnico Eagle Mines (AEM.TO) gained 4.80 percent. Silver Wheaton (SLW.TO) added 2.73 percent.

Crude oil ended lower after the official weekly oil report from the Energy Information Administration showed crude stockpiles to have risen more than expected last week, for a ninth straight week. Oil prices also came under pressure from a stronger dollar, but trimmed much of the losses on speculation that U.S. oil installations are running out of storage space for excess supplies.

The Energy Index added 1.37 percent, with U.S. crude oil futures for April delivery, dropping $0.12 or 0.2 percent to settle at $48.17 a barrel on the New York Mercantile Exchange Wednesday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) gained 3.39 percent, Suncor Energy Inc. (SU.TO) added 1.35 percent, Canadian Natural Resources Limited (CNQ.TO) advanced 1.15 percent, and Encana Corp. (ECA.TO) moved up 1.85 percent.

Crescent Point Energy Corp. (CPG.TO) added 1.80 percent, while Cenovus Energy Inc. (CVE.TO) gained 0.97 percent.

Spartan Energy (SPE.TO) gained 2.17 percent after reporting fourth quarter earnings of C$0.01 per share, compared to the loss of C$0.07 per share last year.

The heavyweight Financial Index moved up 0.50 percent, with Bank of Nova Scotia (BNS.TO) up 0.19 percent, Bank of Montreal (BMO.TO) up 0.79 percent, and Royal Bank of Canada (RY.TO) added 0.54 percent.

National Bank of Canada (NA.TO) gained 0.24 percent, while Toronto-Dominion Bank (TD.TO) added 0.62 percent.

Canadian Imperial Bank of Commerce (CM.TO) gathered 0.62 percent after the bank completed the offering of 12 million Basel III-compliant Non-cumulative Rate Reset Class A Preferred Shares Series 43 priced at $25.00 per share.

The Diversified Metals & Mining Index dipped 0.08 percent, as First Quantum Minerals Ltd. (FM.TO) fell 3.44 percent, Lundin Mining Corp. (LUN.TO) gathered 1.43 percent, and Teck Resources Limited (TCK-B.TO) advanced 1.83 percent.

Sherritt International Corp. (S.TO) gained 0.97 percent, HudBay Minerals Inc. (HBM.TO) shed 1.38 percent, and Finning International Inc. (FTT.TO) fell 0.38 percent.

The Health Care Index slipped 1.17 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) shed 0.85 percent after its deal to buy Salix Pharmaceuticals was challenged by Endo International with a superior offer of $175 per share in cash and stock, or $11 billion, on Wednesday.

Among other health care stocks, Extendicare Inc. (EXE.TO) gained 1.12 percent, while Catamaran Corp. (CCT.TO) dropped 0.73 percent.

The Capped Industrials Index gained 1.72 percent, with Bombardier Inc. (BBD.B.TO) jumping 6.41 percent and Air Canada (AC.TO) adding 1.55 percent.

The Information Technology Index gathered 1.27 percent, with BlackBerry Limited (BB.TO) adding 2.02 percent,

Among other tech stocks, Sierra Wireless, Inc. (SW.TO) moved up 2.20 percent and Descartes Systems Group Inc. (DSG.TO) added 0.83 percent.

Constellation Software Inc. (CSU.TO) gained 3.77 percent, after it agreed to acquire InterAct911 Corp. Financial terms were not disclosed.

The Capped Telecommunication Index gained 1.02 percent, with Rogers Communications Inc. (RCI.B.TO) dropping 0.51 percent, BCE gained 0.26 percent and TELUS Corp. (T.TO) gathered 2.06 percent.

On the economic front, China's industrial production and retail sales growth slowed more-than-expected at the start of the year, reflecting moderation in growth momentum, data revealed Wednesday. Industrial production increased 6.8 percent year-on-year in the January to February period, the National Bureau of Statistics said. The annual growth was forecast to slow to 7.7 percent from 7.9 percent.

During January to February, China's retail sales grew at a pace of 10.7 percent, slower than an 11.9 percent rise seen in December and an expected increase of 11.6 percent.

U.K. industrial and manufacturing output declined unexpectedly in January, data from the Office for National Statistics revealed Wednesday. Industrial output slid 0.1 percent month-on-month in January, following a 0.2 percent drop in December. Economists had forecast a 0.2 percent rise for January.

European Central Bank President Mario Draghi said on Wednesday the stimulus measures adopted by the bank since January will stabilize inflation in line with the target and that they are working their way into the real economy.

"We can deploy - and we are deploying - monetary policy in a way that can - and will - stabilise inflation in line with our objective," Draghi said his speech at the ECB Watchers Conference in Frankfurt.