TSX Ends Lower On Resource Stocks - Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day gain to end lower Friday, tracking declining U.S. and European equity markets, driven mainly by resource stocks as commodity prices plummeted after concerns eased over any immediate military action by the U.S. and and its allies against Syria. Some mixed economic data out of the U.S. also helped prop up the main index, with investor sentiments improving on some encouraging gross domestic product data from Canada.

Most U.S. and European markets ended lower as investors weighed the possibilities of an imminent attack against Syria and further concerns over any cut to the monetary stimulus by the Federal Reserve.

The S&P/TSX Composite Index closed Friday at 12,653.90, down 50.83 points or 0.40 percent. The index touched an intraday high of 12,746.52 and a low of 12,673.39.

The Diversified Metals & Mining Index dropped 0.10 percent, with First Quantum Minerals Ltd. (FM.TO) up 3.49 percent, Osisko Mining Corp. (OSK.TO) down 2.24 percent, and Teck Resources Limited (TCK.B.TO) down 1.04 percent. Lundin Mining Corp. (LUN.TO) plunged 4.41 percent.

The Capped Materials Index declined 0.83 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) edging down 0.06 percent.

The Global Gold Index shed 1.20 percent, with gold futures for December delivery dropping $16.80 or 1.2 percent to close at $1,396.10 an ounce Friday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) shed 0.58 percent, B2Gold Corp. (BTO.TO) dropped 4.44 percent, Goldcorp Inc. (G.TO) slipped 1.33 percent, IAMGOLD Corp. (IMG.TO) surrendered 2.47 percent, and Barrick Gold Corp. (ABX.TO) lost 2.80 percent.

Crude oil ended sharply lower Friday, after concerns over any immediate military intervention against Syria faded with both the U.S. and U.K. backing down.

The Energy Index dropped 0.80 percent, with U.S. crude oil futures for October delivery shedding $1.15 or 1.1 percent to close at $107.65 a barrel Friday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) slipped 1.92 percent, Talisman Energy Inc. (TLM.TO) slipped 0.35 percent, and Suncor Energy Inc.(SU.TO) dropped 1.66 percent.

The Financial Index slipped 0.18 percent with Royal Bank of Canada (RY.TO) down 0.52 percent, Bank of Montreal (BMO.TO) down 1.15 percent, and Bank of Nova Scotia (BNS.TO) up 0.29 percent. Manulife Financial Corp. (MFC.TO) added 0.58 percent, while National Bank of Canada (NA.TO) surrendered 0.83 percent.

Laurentian Bank of Canada (LB.TO) lost 1.38 percent after reporting net income of $28.3 million or $0.91 per share for the third quarter, compared with $30.0 million or $1.06 per share a year ago. Adjusted net income was $39.8 million or C$1.31 per share.

The Information Technology Index dipped 0.18 percent, with BlackBerry Limited (BB.TO) down 1.48 percent.

The Capped Industrials Index shed 0.47 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) adding 1.27 percent.

Meanwhile, convenience stores operator Alimentation Couche-Tard Inc. (ATD_A.TO, ATD_B.TO) rose 5.89 percent after reporting first-quarter net earnings attributable to shareholders increased to $254.9 million, from $102.9 million last year. On a per share basis, net income was $1.35, up from $0.57 last year.

In economic news Statistics Canada said the economy expanded 0.4 percent in the second quarter, building onto its 0.5 percent growth in the first quarter. However, on a monthly basis, real GDP by industry declined 0.5 percent in June.

In economic news from the U.S., the Commerce Department said personal income edged up 0.1 percent in July following a 0.3 percent increase in June. Economists expected income to increase by about 0.2 percent. Personal spending also inched up by 0.1 percent in July compared to an upwardly revised 0.6 percent increase in the previous month. Spending had been expected to rise by 0.3 percent.

A Thomson Reuters and the University of Michigan report on Friday showed a drop in U.S. consumer sentiment in August, with the final consumer sentiment index reading at 82.1. This is up from the preliminary reading of 80.0, but below the six-year high of 85.1 set in July.

Chicago-area business activity for August expanded at a slightly faster rate, a report from MNI Indicators showed Friday. The Chicago business barometer edged up to 53.0 in August from 52.3 in July, with a reading above 50 indicating an increase in business activity. The modest increase was in line with economists forecast. The increase was led by growth in new orders, with the index climbing to 57.2 in August from 53.9 in July.

From the eurozone, Germany's retail sales fell unexpectedly in July, data published by the Federal Statistical Office showed. Sales dropped 1.4 percent month-on-month on a calender and seasonally adjusted basis in July against expectations for a 0.6 percent increase.

Eurozone economic confidence improved for the fourth consecutive month in August, survey data from the European Commission showed. The corresponding index was at 95.2 in August, compared to 92.5 in July. The reading was above the consensus 93.8.

Unemployment rate in eurozone held steady at record 12.1 percent in July, in line with forecast, data from Eurostat showed. The jobless rate has remained at this level for the fourth consecutive month. According to Eurostat estimates, 19.231 million people were unemployed in euro area in July. Compared with June, unemployment decreased by 15,000, but rose by 1.008 million year-on-year.