TSX Ends Lower On Weak China Data -- Canadian Commentary

(RTTNews) - Canadian stocks ended sharply lower on Thursday, tracking plunging U.S. equity markets with almost all major sub-indices ending in negative territory. Investor concerns over the state of Chinese economy and fading hopes of some fresh stimulus from the Chinese government weighed on the market.

China's exports and imports declined unexpectedly in March, showing evidence suggesting that the economy is struggling to achieve its targeted growth. Despite the significant drop, the Chinese Premier Li Keqiang has ruled out major stimulus to fight short-term dips in growth.

A fairly encouraging report on U.S. jobless claims and easing concerns about U.S. interest rates limited the market's downside.

The S&P/TSX Composite Index closed Thursday at 14,308.00, down 127.58 points or 0.88 percent. The index scaled an intraday high of 14,444.94 and a low of 14,266.57.

Asian markets ended mostly higher despite weak trade data from China, while major European markets were mixed. In the U.K., the Bank of England left its lending rate unchanged at a record low and also kept its asset-buying program at current levels.

Crude oil ended lower on the weak trade data from China and a notable rise in U.S. crude oil inventories dragging on prices.

The Energy Index shed 0.13 percent, with U.S. crude oil futures for May delivery, dropping $0.20 or 0.2 percent to close at $103.40 a barrel Thursday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 0.20 percent, while Encana Corp. (ECA.TO) moved up 0.16 percent. Canadian Natural Resources Ltd. (CNQ.TO) dipped 0.09 percent, while Surge Energy Inc. (SGY.TO) dropped 0.76 percent. Petrobank Energy and Resources Ltd. (PBG.TO) jumped 7.69 percent.

Crew Energy Inc. (CR.TO) surged 15.73 percent after announcing the successful completion of an acquisition of certain strategic Montney liquids rich natural gas properties in northeast British Columbia for approximately $105 million.

The Global Gold Index dropped 1.41 percent, with gold futures for June delivery, jumping $14.60 or 1.1 percent to close at $1,320.50 an ounce Thursday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) added 0.87 percent, while Barrick Gold Corp. (ABX.TO) moved up 0.29 percent. Yamana Gold Inc. (YRI.TO) gained 1.05 percent, while Goldcorp Inc. (G.TO) advanced 1.13 percent.

Goldcorp Inc. (G.TO) shed 3.39 percent after revealing plans to increase its offer to acquire all of the outstanding common shares of Osisko Mining Corp. (OSK.TO). Goldcorp plans to increase its offer to C$7.65 per Osisko share for a total consideration of approximately C$3.6 billion. Shares of Osisko Mining Corp. gained 0.40 percent.

The Capped Materials Index surrendered 1.36 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.99 percent.

The heavyweight Financial Index dropped 1.06 percent with the Toronto-Dominion Bank (TD.TO) down 1.54 percent, Royal Bank of Canada (RY.TO) down 0.55 percent, and Bank of Montreal (BMO.TO) down 0.50 percent. National Bank of Canada (NA.TO) dived 1.09 percent, while Bank of Nova Scotia (BNS.TO) surrendered 1.02 percent.

The Diversified Metals & Mining Index slipped 0.76 percent, with Teck Resources Limited (TCK.B.TO) down 2.14 percent, Lundin Mining Corp. (LUN.TO) up 0.38 percent, and First Quantum Minerals (FM.TO) down 0.10 percent.

The Information Technology Index dived 2.38 percent, even as BlackBerry Limited (BB.TO) dived 3.23 percent. The smartphone maker is reportedly considering exiting its handset business if it remains unprofitable. Reports say the company plans to expand its corporate reach with investments, acquisitions and partnerships.

The Capped Industrials Index lost 1.29 percent, with Bombardier Inc. (BBD.B.TO) dropping 1.23 percent.

In corporate news, Quebec media company Cogeco Inc. (CGO.TO) gained 3.01 percent after reporting a second-quarter profit of $17.4 million or $1.03 per share, up from $14.7 million or $0.87 per share in the comparable quarter last year.

Cogeco Cable Inc. (CCA.TO) jumped 4.83 percent after reporting a second quarter profit of C$60.4 million or C$1.23 per share, compared to C$50.8 million or C$1.04 per share in the year-ago quarter.

Shaw Communications Inc. (SJR.B.TO) shares added 0.53 percent, after reporting second-quarter net income attributable to equity shareholders of C$215 million, up from last year's C$172 million, with earnings per share improving to C$0.46 from C$0.38 last year.

Sandvine Corporation (SVC.TO) surged 10.59 percent after reporting net income of US$7.5 million for the first quarter, up from US$1.7 million in the year-ago quarter.

The Capped Health Care Index plunged 3.35 percent with Catamaran Corporation (CCT.TO) down 5.72 percent, Extendicare Inc. (EXE.TO) down 0.88 percent, and Valeant Pharmaceuticals International, Inc. (VRX.TO) down 3.76 percent. ProMetic Life Sciences Inc. (PLI.TO) plummeted 6.20 percent.

In Canadian economic news, Statistics Canada said the country's New House Price Index rose to 0.2% in March, from 0.3% in the preceding month.

In economic news from the U.S., the Labor Department said initial jobless claims dropped to 300,000 in the week ended April 5, a decrease of 32,000 from the previous week's revised figure of 332,000. Economists expected jobless claims to edge down to 320,000 from the 326,000 originally reported for the previous week. With the bigger than expected decrease, jobless claims fell to their lowest level since hitting 297,000 in the week ended May 12, 2007.

A separate report from the Labor Department showed that import prices in the U.S. rose by a more than expected 0.6 percent in March, after climbing 0.9 percent in February. Meanwhile, export prices rose 0.8 percent in March following a revised 0.7 percent increase in the previous month.

China's shipments dropped 6.6 percent year-over-year in March, confounding expectations for a 4.8 percent increase. However, the rate of decline slowed from the 18.1 percent slump in February, figures from the General Administration of Customs showed Thursday. Export figures for March were largely distorted by a strong base comparison last year. Suggesting weak domestic demand, China's imports dipped 11.3 percent, reversing the 10.1 percent growth seen in February and in contrast to the 3.9 percent rise forecast by economists.

The Chinese trade balance showed a surplus of $7.7 billion in March, larger than the $1.8 billion surplus expected by economists. In February, the balance revealed a huge $22.9 billion deficit.