TSX Ends Lower As Commodities Decline -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a second straight session on Wednesday, as commodity prices declined with investors treading cautiously due to a lack of triggers. Weakness in the U.S. and European markets amid clashes between pro-Russian separatists and Ukrainian forces also weighed on sentiment.

Energy, materials, and financial stocks weakened, with gold stocks down as well, tracking declining bullion prices.

The S&P/TSX Composite Index closed Wednesday at 14,610.96, down 47.06 points or 0.32 percent. The index scaled an intraday high of 14,658.02 and a low of 14,557.89.

On Tuesday, the index ended lower, snapping a five-session winning streak.

The Financial Index dropped 0.21 percent with Bank of Montreal (BMO.TO) down 0.23 percent after reporting second-quarter net income of C$1.06 billion or C$1.60 per share, up from last year's C$944 million or C$1.40 per share.

National Bank of Canada (NA.TO) shares dropped 2.49 percent after reporting second quarter net income of $362 million, compared to $417 million in the second quarter of 2013. Earnings per share came in at $1.01 in the second quarter, against $1.20 in the second quarter of 2013.

Bank of Nova Scotia (BNS.TO) added 0.09 percent, Toronto-Dominion Bank (TD.TO) slipped 0.09 percent, and Royal Bank of Canada (RY.TO) dropped 0.06 percent.

Among other major banks, the Canadian Imperial Bank of Commerce (CM.TO) gained 0.28 percent.

The Capped Healthcare Index slipped 0.80 percent with Catamaran Corp. (CCT.TO) down 0.26 percent and Extendicare Inc. (EXE.TO) up 0.14 percent.

Valeant Pharmaceuticals International Inc. (VRX.TO) dropped 2.14 percent after raising its offer for Allergan Inc. (AGN), increasing cash consideration by $10.00 per share to $58.30 per share. This represents an increase of approximately 21 percent from the prior offer of $48.30 per share in cash.

The drugmaker has also reached an agreement with Nestle S.A. (NSRGY.PK,NSTR.L) to sell all rights to Restylane, Perlane, Emervel, Sculptra and Dysport owned or held by Valeant for $1.4 billion cash.

Crude oil ended lower ahead of the official U.S. crude inventory data with investors expecting the data will show an increase in stockpiles.

The Energy Index added 0.17 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, dropping $1.39 or 1.3 percent to close at $102.72 a barrel Wednesday on the Nymex.

Among other energy stocks, Encana Corp. (ECA.TO) gained 1.14 percent, while Canadian Oil Sands Limited (COS.TO) added 0.53 percent. Husky Energy Inc. (HSE.TO) inched up 0.08 percent, while Canadian Natural Resources Ltd. (CNQ.TO) moved up 0.05 percent.

Baytex Energy Corp. (BTE.TO) surrendered 0.51 percent, while Pacific Rubiales Energy Corp. (PRE.TO) added 1.73 percent.

Gold futures ended lower with investors looking for fresh triggers after yesterday's significant decline, even as the dollar strengthened after some upbeat economic data from the U.S. yesterday

The Global Gold Index dropped 1.57 percent, with gold futures for June delivery shedding $6.20 or 0.55 percent to close at $1,259.30 an ounce Wednesday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) dropped 1.78 percent, Osisko Mining Corp. (OSK.TO) down 0.76 percent, Barrick Gold Corp. (ABX.TO) slipped 1.50 percent, and Agnico Eagle Mines Limited (AEM.TO) surrendered 1.46 percent.

The Capped Materials Index plunged 2.25 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) dropping 0.18 percent.

The Diversified Metals & Mining Index shed 1.27 percent, with Lundin Mining Corp. (LUN.TO) down 3.67 percent, First Quantum Minerals Ltd. (FM.TO) down 1.10 percent, and Teck Resources Limited (TCK.B.TO) down 2.61 percent.

The Information Technology Index dropped 0.65 percent, with BlackBerry Limited (BB.TO) flat at $7.92 a share, Constellation Software Inc (CSU.TO) down 0.20 percent, and Celestica Inc. (CLS.TO) up 0.70 percent. Avigilon Corp. (AVO.TO) dropped 1.36 percent.

The Capped Industrials Index gained 0.29 percent, with Bombardier Inc. (BBD.B.TO) flat at $3.79 a share and Air Canada (AC.B) up 4.14 percent.

In economic news, German unemployment increased in May confounding expectations, for the first time in six months but the labor office credited it largely to weather related factors. The number of people out of work increased by around 24,000 to 2.91 million in May, the Federal Labor Agency reported Wednesday, the first increase in six months. The forecast was for a decline of 15,000.

Meanwhile, eurozone economic sentiment improved more-than-expected in May to a 34-month high, driven by higher confidence among consumers and industry managers, survey results showed Wednesday. The economic sentiment index rose to 102.7 in May, the highest since July 2011, from 102 in April, the European Commission said. This was also above the consensus of 102.2.