TSX Ends Sharply Lower On Iraq Concerns -- Canadian Commentary

(RTTNews) - Canadian Commentary plummeted to end lower for a third straight session on Tuesday, driven by a steep drop in energy, mining and material stocks, even as investors remained concerned over the developments in Iraq with Sunni militants taking more cities under their control.

Latest reports from Iraq indicate heavy fighting for the control of the country's largest oil refinery in Baiji with officials refuting claims the militants have taken over the facility, even as insurgents gained other territories in the country's north and west regions.

Meanwhile, Prime Minister Nouri al-Maliki has reportedly agreed to the creation of a unity government involving Shias, Sunnis and Kurds, by July 1. U.S. Secretary of State John Kerry says Iraqi leaders have agreed to form a new government by July 1, as the Nouri al-Maliki regime looks to quell the uprising. Kerry on Tuesday also met Kurdish President Massoud Barzani, aiming to find a solution to the crisis.

The S&P/TSX Composite Index closed Tuesday at 14,962.37, down 143.26 points or 0.95 percent. The index scaled an intraday high of 15,137.68 and a low of 14,956.76.

Crude oil ended lower ahead of the weekly oil inventory report from the U.S. Energy Information Administration and over the ongoing crisis in Iraq with Secretary of State John Kerry in Baghdad making efforts to bring together factions to deal with the ISIS threat.

The Energy Index plunged 2.44 percent, with U.S. crude oil futures for July delivery, the most actively traded contract, shedding $0.14 or 0.1 percent to close at $106.03 a barrel Tuesday on the Nymex.

Among energy stocks, Canadian Natural Resources Ltd. (CNQ.TO) dropped 2.04 percent, Talisman Energy Inc. (TLM.TO) dipped 3.20 percent, Suncor Energy Inc.(SU.TO) dived 3.61 percent, Cenovus Energy Inc. (CVE.TO) lost 1.74 percent, and Encana Corp. (ECA.TO) surrendered 2.01 percent.

The Financial Index dipped 0.19 percent with Toronto-Dominion Bank down 0.59 percent, Bank of Montreal (BMO.TO) up 0.08 percent, National Bank of Canada (NA.TO) shed 0.98 percent, and Bank of Nova Scotia (BNS.TO) edging down 0.01 percent.

The Capped Healthcare Index edged up 0.06 percent with Valeant Pharmaceuticals International, Inc. (VRX.TO) down 0.50 percent, Catamaran Corporation (CCT.TO) up 0.38 percent, and Extendicare Inc. (EXE.TO) up 0.27 percent.

Specialty healthcare company Endo International plc (ENL.TO) said it agreed to acquire DAVA Pharmaceuticals, Inc., a privately-held company specializing in marketed, pre-launch and pipeline generic pharmaceuticals, for $575 million in cash, with additional cash consideration of up to $25 million contingent on the achievement of certain sales milestones.

Centric Health Corp. (CHH.TO) jumped 11.69 percent after reaching a definitive agreement to sell substantially all of the assets of its methadone pharmacy operations to a consortium of healthcare investors for $20 million in cash.

Gold futures ended higher for a fifth straight session on its safe haven appeal driven by geopolitical tensions in the Middle East amid fears of the Iraqi sectarian violence further escalating.

The Global Gold Index dived 2.75 percent, although gold futures for August delivery gained $2.90 or 0.2 percent to close at $1,321.30 an ounce Tuesday on the Nymex.

Among other gold stocks, B2Gold Corp. (BTO.TO) dropped 2.24 percent, Yamana Gold Inc. (YRI.TO) dived 5.70 percent, Goldcorp Inc. (G.TO) down 2.27 percent and Barrick Gold Corp. (ABX.TO) shed 2.31 percent.

The Capped Materials Index dived 1.76 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) edging up 0.02 percent.

The Diversified Metals & Mining Index declined 1.68 percent, with Lundin Mining Corp. (LUN.TO) down 1.59 percent, First Quantum Minerals Ltd. (FM.TO) down 1.38 percent, and Teck Resources Limited (TCK.B.TO) slipping 2.05 percent.

The Information Technology Index shed 1.05 percent, with BlackBerry Limited (BB.TO) down 2.58 percent.

Among other tech stocks, CGI Group Inc. (GIB.A.TO) slipped 0.30 percent, Constellation Software Inc. (CSU.TO) dropped 0.53 percent, and Avigilon Corp. (AVO.TO) dipped 1.88 percent.

The Capped Industrials Index dropped 0.75 percent, with Bombardier Inc. (BBD.B.TO) down 1.30 percent, Canadian National Railway Company (CNR.TO) down 0.61 percent, and Canadian Pacific Railway Limited (CP.TO) diving 3.16 percent. Among airliners, WestJet Airlines (WJA.TO) added 0.36 percent, while Air Canada (ACB.B.TO) gained 2.51 percent.

Cargojet Inc. (CJT.TO) moved up 0.88 percent after signing a Cooperation Agreement with Canadian airline First Air, a unit of Makivik Corp., that will create significant cost efficiencies for both carriers.

In economic news from the U.S., data from the Commerce Department showed new home sales to have surged up by a more than expected 18.6 percent to a seasonally adjusted annual rate of 504,000 in May from the revised April rate of 425,000. Economists expected sales to climb to a rate of 440,000 from the 433,000 originally reported for the previous month.

Meanwhile, the Conference Board's report showed U.S. consumer confidence to have risen to a more than expected 85.2 in June, its highest level since January 2008, from a revised 82.2 in May. Economists expected the index to edge up to 83.5 from the 83.0 originally reported for the previous month.

A Standard & Poor's report on Tuesday showed the S&P/Case-Shiller 20-City Composite Home Price Index to have increased at an annual rate of 10.8 percent in April compared to the 12.4 percent growth reported for March. Economists expected the pace of year-over-year growth in prices to show a more modest slowdown to an annual rate of 11.5 percent.

In economic news from Europe, business confidence in Germany deteriorated for the second straight month in June, with a reading on business sentiment declining to a six-month low of 109.7, from 110.4 in May. Economists had forecast the index to drop marginally to 110.3.

A leading economic index for China continued to expand in May, albeit at a slower pace, a survey by the Conference Board revealed on Tuesday. The leading economic index was up 0.7 percent in May to a score of 290.2. That follows 1.0 percent increases in both April and March.