TSX Ends Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher on Monday, tracking rising global equity markets, led mostly by resource stocks amid expectations the Chinese government will come out with reforms to boost the sagging economy. The main index was boosted by energy and gold stocks tracking higher commodity prices, on lingering concerns over the ongoing unrest in Ukraine.

All sub-indices of the S&P/TSX Composite Index ended in positive territory.

Pro-Russian separatists in the Donetsk region of eastern Ukraine claimed nearly 90 percent of voters in the region voted in favor of self rule in a referendum held on Sunday. Nonetheless, the vote has been condemned as illegal by Kiev and Western governments, although Moscow appear to challenge it.

Meanwhile, the European Union refused to accept the results of the referendum and is reportedly considering imposing more sanctions on Russia.

The S&P/TSX Composite Index closed Monday at 14,654.94, up 120.88 points or 0.83 percent. The index scaled an intraday high of 14,657.28 and a low of 14,535.56.

On Friday, the main index settled slightly lower, dragged down by energy stocks as oil prices trended lower, notwithstanding some encouraging global economic data.

Crude oil prices ended higher amid concerns over the ongoing unrest in Ukraine with pro-Russian separatists claiming victory in the Sunday referendum, and the delay in Libyan oil shipments.

The Energy Index jumped 1.32 percent, with U.S. crude oil futures for June delivery gaining $0.60 or 0.6 percent to close at $100.59 a barrel Monday on the Nymex.

Among other energy stocks, Husky Energy Inc. (HSE.TO) gained 0.33 percent, Canadian Natural Resources Ltd. (CNQ.TO) added 2.31 percent, and Suncor Energy Inc. (SU.TO) gathered 1.57 percent. Crew Energy Inc. (CR.TO) added 0.77 percent.

Canadian Oil Sands Limited (COS.TO) gained 1.85 percent, while Talisman Energy Inc. (TLM.TO) jumped 3.85 percent.

The Capped Healthcare Index gained 1.19 percent as Catamaran Corp. (CCT.TO) gained 2.85 percent and Valeant Pharmaceuticals International, Inc. (VRX.TO) down 0.69 percent.

Allergan Inc. (AGN) said it has rejected the C$46 billion cash and stock offer by Canadian drug maker Valeant Pharmaceuticals International Inc. (VRX.TO), indicating that the proposal substantially undervalues Allergan and is not in the best interests of the company and its stockholders.

Gold futures ended higher with investors seeking the safe haven of the metal, amid concerns over the unrest in Ukraine.

The Global Gold Index edged gained 1.0 percent, with gold futures for June delivery gaining $8.20 or 0.6 percent to close at $1,295.80 an ounce Monday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) slipped 0.25 percent, Osisko Mining Corp. (OSK.TO) moved up 1.13 percent, Barrick Gold Corp. (ABX.TO) advanced 0.69 percent, and Agnico Eagle Mines Limited (AEM.TO) gained 2.88 percent. Kinross Gold Corp. (K.TO) moved up 0.68 percent.

The Capped Materials Index advanced 1.50 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.87 percent.

The Financial Index added 0.28 percent with the Toronto-Dominion Bank (TD.TO) up 0.02 percent, Royal Bank of Canada (RY.TO) up 0.60 percent, The Bank of Nova Scotia (BNS) up 0.15 percent, and Bank of Montreal (BMO.TO) up 0.35 percent.

The Diversified Metals & Mining Index surged 3.89 percent, with Lundin Mining Corp. (LUN.TO) jumping 5.99 percent, First Quantum Minerals Ltd. (FM.TO) surged 4.90 percent, and Teck Resources Limited (TCK.B.TO) soared 4.14 percent.

Cameco Corporation (CCO.TO) gained 1.58 percent, Capstone Mining Corp. (CS.TO) added 3.97 percent, HudBay Minerals Inc. (HBM.TO) added 5.12 percent, and Sherritt International Corporation (S.TO) advanced 2.61 percent.

The Information Technology Index gathered 1.37 percent, with BlackBerry Limited (BB.TO) up 1.76 percent, Constellation Software Inc (CSU.TO) up 1.40 percent, and Celestica Inc. (CLS.TO) up 0.81 percent.

Avigilon Corp. (AVO.TO) shed 3.46 percent.

The Capped Industrials Index gained 1.43 percent, with Bombardier Inc. (BBD.B.TO) up 0.73 percent and Air Canada (AC.B) down 1.60 percent.

In corporate news, Ensign Energy Services Inc. (ESI.TO) dropped 0.74 percent despite its first-quarter earnings dropping 7 percent to C$60.4 million or C$0.39 per share from C$65.0 million or C$0.42 per share last year.

Telecommunications company Telus Corp. (T.TO) gained 0.83 percent after indicating it would invest $2.6 billion in new infrastructure and facilities across Alberta through 2016.

Conifex Timber Inc. (CFF.TO) added 0.78 percent after the company reported net income of $1.6 million or $0.08 per share for the first quarter of 2014. In the previous quarter, Conifex posted a net income of $1.1 million or $0.05 per share.

Fortis Inc. (FTS.TO) gained 0.31 percent, after announcing that Stanley Marshall will retire as President and Chief Executive Officer and Director of the Board of Directors of the company, effective December 31, 2014.

In economic news, the Confederation of British Industry on Monday upgraded U.K. economic outlook as recovery continues to take hold and estimates an interest rate hike in the first quarter of 2015. The business lobby has forecast 3 percent economic growth this year, up from a prior estimate of 2.6 percent. Likewise, growth for 2015 was lifted to 2.7 percent from 2.5 percent. The CBI estimates 8.3 percent rise in business investment this year and 9.1 percent in 2015.

China's bank lending remained below expectations, while money supply growth accelerated in April, data from the People's Bank of China showed Monday. Banks lent CNY 774.7 billion worth of loans in April, compared to CNY 1.05 trillion loans provided in March. This was also below the expected level of CNY 880 billion.