TSX Ends Higher Despite Gloomy Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended modestly higher Thursday, tracking rising U.S. equity markets although gains were limited after mining and energy shares trended lower following a sharp fall in crude oil prices with bullion prices also failing to make any big headway. The small gains came after investors indulged in some selective buying notwithstanding weak economic data from the U.S. and eurozone.

Investors appear to be betting on hopes the weak U.S. jobless claims data and stagnant growth in the eurozone might prompt central banks to continue with their easy monetary policies for an extended period.

The momentum of the main index was checked by some weak data from the U.S. with first-time claims for unemployment benefits rising more than expected last week.

Worries over Ukraine eased a bit after President Vladimir Putin stated that Russia will do everything possible to end the conflict between the Ukrainian government and pro-Russian separatists.

The S&P/TSX Composite Index closed Thursday at 15,291.18, up 28.45 points or 0.19 percent. The index scaled a intraday high of 15,312.86 and a low of 15,257.46.

Crude oil plummeted to end at a near seven-month low on demand growth concerns after some weak economic data from the U.S. with first-time claims for unemployment benefits rising more than expected last week and on the unexpected increase in oil stockpiles last week.

The Energy Index dropped 0.95 percent, with U.S. crude oil futures for September delivery plunging $2.01 or 2.1 percent to close at $95.98 a barrel Thursday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) dipped 0.89 percent, Enbridge Inc. (ENB.TO) gained 0.19 percent, Suncor Energy Inc. (SU.TO) dropped 0.57 percent, Talisman Energy (TLM.TO) shed 0.89 percent, Encana Corp. (ECA.TO) surrendered 0.04 percent, and Cenovus Energy Inc. (CVE.TO) dropped 0.45 percent.

The Healthcare Index added 0.88 percent with Valeant Pharmaceuticals Inc. (VRX) up 1.47 percent, Catamaran Corp. (CCT.TO) up 1.35 percent, and Extendicare Inc. (EXE.TO) ended flat at $8.52 a share.

The Financial Index gained 0.67 percent with Toronto-Dominion Bank moving up 0.73 percent, National Bank of Canada (NA.TO) up 0.51 percent, and Bank of Nova Scotia (BNS.TO) up 0.47 percent.

Canadian Imperial Bank Of Commerce (CM.TO) added 0.75 percent, Royal Bank of Canada (RY.TO) gained 0.74 percent, and Bank of Montreal (BMO.TO) advanced 0.75 percent.

Gold futures ended higher on some disappointing economic data from the U.S. with first-time claims for unemployment benefits rising more than expected last week.

Global Gold Index shed 0.92 percent, with gold futures for December delivery gaining $1.20 or 0.01 percent to close at $1,315.70 an ounce on the Nymex Thursday.

Among gold stocks, B2Gold Corp. (BTO.TO) dropped 4.58 percent, Yamana Gold Inc. (YRI.TO) shed 0.52 percent, Barrick Gold Corp. (ABX.TO) edged up 0.05 percent, Goldcorp Inc. (G.TO) down 1.06 percent, Franco-Nevada Corp. (FNV.TO) plunged 4.53 percent, and Detour Gold Corp. (DGC.TO) dropped 0.85 percent.

The Capped Materials Index fell 0.86 percent on the back of declining gold stocks, even as Potash Corp. of Saskatchewan Inc. (POT.TO) gained 0.61 percent.

The Diversified Metals & Mining Index dived 1.76 percent, with First Quantum Minerals Ltd. (FM.TO) down 2.00 percent, Lundin Mining Corp. (LUN.TO) down 3.32 percent, and Teck Resources Limited (TCK.B.TO) ending flat at $25.09 a share.

The Capped Industrials Index added 0.81 percent, with Bombardier Inc. (BBD.B.TO) up 0.52 percent and Air Canada (AC.B.TO) down 0.97 percent.

The Capped Telecommunications Index advanced 0.43 percent, with Rogers Communications Inc. (RCI.B.TO) up 0.67 percent, Manitoba Telecom Services Inc. (MBT.TO) down 0.71 percent, and BCE Inc. (BCE.TO) up 0.70 percent.

The Information Technology Index moved up 0.32 percent, with BlackBerry Limited (BB.TO) up 1.37 percent and Avigilon Corp. (AVO.TO) dived 3.08 percent.

The Capped Utilities Index gained 0.38 percent with Fortis Inc. (FTS.IR.TO) adding 1.49 percent.

Canadian Energy Services & Technology Corp. (CEU.TO) dropped 3.68 percent after reporting a second-quarter profit of $8.5 million or $0.04 per share, compared to $1.9 million or $0.01 per share in the prior year quarter.

Silver Wheaton Corp. (SLW.TO) dropped 4.68 percent on lower earnings, reporting a second-quarter profit of $63.5 million or $0.18 per share, compared to $71.1 million or $0.20 per share, prior year.

Pacific Rubiales Energy Corp. (PRE.TO) slipped 0.28 percent after reporting net earnings of $228.5 million or $0.73 per share in the second quarter, up from $74.3 million or $0.23 per share in the prior corresponding quarter. The stock is advancing 1.2 percent.

IAMGOLD (IMG.TO) gained 3.10 percent after reporting a quarterly net loss to equity holders of $16 million or $0.04 per share, compared to a loss of $28.4 million or $0.08 per share last year.

Karnalyte Resources Inc. (KRN.TO) jumped 5.17 percent after the company's second-quarter net finance loss narrowed to C$162 thousand from C$519 thousand in the prior year. Loss per share was C$0.05 compared to a loss of C$0.06 in the previous year.

Chorus Aviation Inc. (CHR.B) added 0.22 percent after reporting adjusted net income of $22.2 million or 18 cents per share for the second quarter, up $21.4 million or 17 cents per share last year.

On the economic front, new home prices in Canada were up in June, with the housing price index rising 0.2 percent, said Statistics Canada. On yearly basis, new house prices rose 1.5 percent.

In economic news from the U.S., initial jobless claims rose more than expected to 311,000, up 21,000 from the previous week's revised level of 290,000. Economists expected jobless claims to edge up to 295,000 from the 289,000 originally reported for the previous week.

Another report from the Labor Department showed import prices to have edged down 0.2 percent in July, after inching up by 0.1 percent in June. Forecast was for a drop of 0.3 percent in import prices. Export prices were unexpectedly unchanged in July following a 0.4 percent drop in the previous month.

Meanwhile, economic recovery in the eurozone unexpectedly came to a halt in the second quarter, with Germany and Italy shrinking from the prior quarter. GDP was flat in the June quarter, after seeing an increase of 0.2 percent in the preceding quarter.

The pace of Chinese growth continue to be of concern, with both China's latest industrial production and retail sales figures were less robust than the month before.