TSX Ends Lower Over Russian Tangle -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower Friday, tracking declining U.S. equities, on concerns over the continued tensions between Russia and the West over Ukraine with lawmakers in Russia finalizing the annexation of Ukraine's Crimea region. Nonetheless, some tame inflation data and upbeat retail sales checked further losses, and also helped by firming energy prices over worries of drop in supplies from Russia.

The main index surrendered most of the early gains over concerns about the outlook on U.S. interest rates forcing investors to tread cautiously. Asian markets ended on a firm note, with Chinese stocks posting strong gains amid speculation the government would loosen funding restrictions for property developers and lenders to support economic growth. Some of the major European markets also ended modestly higher.

The S&P/TSX Composite Index closed Friday at 14,335.99, down 25.84 points or 0.18 percent. The index scaled an intraday high of 14,406.86 and a low of 14,335.99.

Energy stocks were lifted by firm crude oil prices, after the dollar weakened against a basket of major currencies on the continued tensions between Russia and the West over Ukraine.

The Energy Index gained 0.48 percent, with U.S. crude oil futures for May delivery, gaining $0.56 or 0.6 percent to close at $99.46 a barrel a barrel Friday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) slipped 0.36 percent, while Enbridge Inc. (ENB.TO) gained 0.40 percent. Canadian Natural Resources Ltd. (CNQ.TO) added 0.55 percent, while Encana Corp. (ECA.TO) shed 0.66 percent.

Gold stocks snapped a four-day loss to end higher after the dollar weakened against a basket of major currencies, but continued to remain under pressure following the Federal Reserve Chairman's comments that the central bank could raise interest rates as early as spring next year.

The Global Gold Index slipped 0.68 percent, with gold futures for April delivery, adding $5.50 or 0.4 percent to close at $1,336.00 an ounce Friday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) dropped 0.37 percent, while Barrick Gold Corp. (ABX.TO) slipped 0.27 percent. Detour Gold Corp. (DGC.TO) gained 1.76 percent, while Goldcorp Inc. (G.TO) surrendered 0.33 percent. Osisko Mining Corp. (OSK.TO) dropped 0.92 percent, while Semafo Inc. (SMF) dived 3.68 percent.

The Capped Materials Index dropped 0.31 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.93 percent.

The heavyweight Financial Index slipped 0.13 percent with the Toronto-Dominion Bank (TD.TO) down 0.50 percent, Bank of Nova Scotia (BNS.TO) up 0.15 percent, Royal Bank of Canada (RY.TO) down 0.04 percent, and Bank of Montreal (BMO.TO) added 0.21 percent.

The Diversified Metals & Mining Index added 1.47 percent, with Teck Resources Limited (TCK.B.TO) gaining 3.09 percent, Lundin Mining Corp. (LUN.TO) up 1.01 percent, and First Quantum Minerals (FM.TO) moving up 2.12 percent.

The Information Technology Index shed 1.87 percent, with BlackBerry Limited (BB.TO) down 3.96 percent after entering into an agreement to sell the majority of its real estate holdings in Canada.

The Capped Industrials Index slipped 0.58 percent, although Bombardier Inc. (BBD.B.TO) added 1.47 percent after a Deutsche Bahn order.

Shares of Silver Wheaton Corp. (SLW.TO) dipped 0.50 percent, after the company reported a sharp drop in both fourth-quarter and full-year net earnings, while cutting its quarterly payout by two cents.

Fairfax Financial Holdings (FFH.TO) dipped 0.71 percent after indicating it will pay about $12.8 million to expand its stake in media company Torstar Corp. (TSB.TO), boosting its holdings to 23 percent.

Onex Corp. (OCX.TO) gained 0.56 percent, after announcing it will sell The Warranty Group or TWG to an affiliate of TPG Capital for an enterprise value of about $1.5 billion, including earnings the business generates from December 31, 2013 through closing.

In economic news, data from Statistics Canada showed Canada's retail sales rose 1.3 percent on month in January, beating forecasts for 0.7 percent advance. Retail sales dropped to 1.8 percent in December.

The consumer price index rose 1.1 percent on year and 0.8 percent on month in February, versus forecasts for an increase of 1.0 percent and 0.6 percent, respectively.

In economic news from Europe, U.K.'s budget deficit exceeded expectations in February with public sector net borrowing excluding interventions rising to GBP 9.3 billion, compared to GBP 9.2 billion registered a year ago. The budget deficit was seen at GBP 8.6 billion.

Meanwhile, Fitch Ratings on Friday maintained the 'AAA' ratings of the United States of America and the 'stable' outlook on the country's ratings, dismissing concerns over a possible downgrade in March. The action resolved the Rating Watch Negative on which the ratings were placed last October, in line with Fitch's previous guidance that this would take place by end-March.

At the same time, rating agencies Standard and Poor's and Fitch lowered their rating outlook on Russia as the U.S. and the European Union imposed sanctions on the country after its controversial annexation of Ukraine's autonomous region of Crimea. The reduction of the outlook from Stable to Negative reflects concerns over the potential impact of the sanctions on Russia's creditworthiness.