TSX Ends Lower On Global Economic Growth Concerns -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower Friday, tracking declining global equity markets, on concerns over the global economy on the back of some weak manufacturing data from China and the U.S. hurting sentiment. Investors also weighed the ongoing tensions between Russia and the West over Crimea even as Russia continued to consolidate its grip over the region. Russia seized most of Ukraine's bases in the Crimea, days after voting to annex the peninsula.

The market started off on a firm note with investors picking up stocks from financial, energy and industrial sectors, but worries about global economy and concerns about the tensions in Ukraine triggered a sell-off subsequently.

Asian markets ended mostly lower amid hopes of a stimulus from Chinese government following a contraction in Chinese manufacturing activity. Most major European markets ended lower despite a closely tracked survey of eurozone business activity indicating growth in the region is spreading and running at a near three-year high.

The S&P/TSX Composite Index closed Monday at 14,278.55, down 57.21 points or 0.40 percent. The index scaled an intraday high of 14,402.49 and a low of 14,226.88.

Energy stocks were lifted by firm crude oil prices, as the dollar weakened and with investor focus on developments in Ukraine with fears of possible disruption in oil supplies from Russia.

The Energy Index gained 0.11 percent, with U.S. crude oil futures for May delivery, gaining $0.14 or 0.1 percent to close at $99.60 a barrel a barrel Monday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 1.43 percent, while Enbridge Inc. (ENB.TO) moved up 0.44 percent. Canadian Natural Resources Ltd. (CNQ.TO) edged up 0.14 percent, while Encana Corp. (ECA.TO) added 1.10 percent. Pacific Rubiales Energy Corp. (PRE.TO) dropped 1.31 percent.

Gold ended at a more than five-week low on Monday, as markets wilted under pressure from the Federal Reserve Chairman's comments that the central bank could raise interest rates as early as spring next year.

The Global Gold Index plunged 4.37 percent, with gold futures for April delivery, plummeting $24.80 or 1.9 percent to close at $1,311.20 an ounce Monday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) plunged 5.20 percent, while Barrick Gold Corp. (ABX.TO) dived 4.64 percent. Detour Gold Corp. (DGC.TO) surrendered 5.55 percent, while Goldcorp Inc. (G.TO) surrendered 4.19 percent. Osisko Mining Corp. (OSK.TO) dropped 3.59 percent.

The Capped Materials Index dropped 2.78 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.42 percent.

The heavyweight Financial Index gained 0.25 percent with the Toronto-Dominion Bank (TD.TO) up 0.31 percent, Royal Bank of Canada (RY.TO) up 0.37 percent, and Bank of Montreal (BMO.TO) up 0.60 percent.

The Diversified Metals & Mining Index fell 1.48 percent, with Teck Resources Limited (TCK.B.TO) dropping 1.10 percent, Lundin Mining Corp. (LUN.TO) up 0.80 percent, and First Quantum Minerals (FM.TO) dipped 0.71 percent.

The Information Technology Index added 0.47 percent, with BlackBerry Limited (BB.TO) gaining 3.04 percent. On Friday, the company had announced an agreement to sell the majority of its real estate holdings in Canada to improve operational efficiencies and optimize resource usage to support business operations.

The Capped Industrials Index slipped 0.41 percent, with Bombardier Inc. (BBD.B.TO) dropping 0.48 percent.

Telus Corp. (T.TO) gained 0.64 percent on reports of having reached an agreement to purchase Quebec-based IT firm Enode. Terms of the deal were not disclosed.

SouthGobi Resources Ltd. (SGQ.TO) plummeted 27.40 percent after reporting a net loss of US$237.46 million for the year ended December 31, 2013, compared to a loss of US$97.50 million, previous year.

In economic news from the U.S., a report from Markit Economics on Monday showed manufacturing business conditions continued to improve in March, although the index of activity in the manufacturing sector fell more than expected. A flash estimate of its manufacturing purchasing managers' index for March came in at 55.5, down from 57.1 in February. Economists anticipated a reading of 56.5.

In economic news from Asia, manufacturing activity in China contracted to an eight-month low in February, with the HSBC Markit's Purchasing Managers Index coming in at 48.1, down from 48.5 in February, and well shy of the 48.7 forecast. This is further below the mark of 50 that separates expansion from contraction. However, the report triggered hopes that the Chinese central bank may come out with new stimulus plans to boost the sagging economy.

From Europe, the euro area private economy maintained its growth momentum in March, with activity expanding for the ninth consecutive month, preliminary data from Markit Economics showed Monday. The flash composite output index came in at 53.2 in March, but was lower than February's 32-month high of 53.3 and the expected level of 53.1.

The flash Eurozone services PMI dropped to 52.4 from 52.6 in February, when it was expected to drop to 52.5. The manufacturing index slid to 53.0 from 53.2 in February, but in line with expectations.

New orders in the German construction sector increased notably in January, with the total value of new orders placed with construction firms climbing 10.6 percent on an annual basis. Orders of residential building climbed 15 percent year-on-year, and civil engineering orders moved up 5.2 percent. Turnover in the German construction sector advanced 21.7 percent in January from last year. Employment in the sector grew 0.9 percent during the month.