TSX Flat Despite Merger Breakthrough -- Canadian Commentary

(RTTNews) - Canadian stocks turned in another sluggish performance despite continued upbeat earnings from the Big Five banks.

Significant merger news also failed to generate much buying interest in the broader market.

Agrium (AGU.TO) and Potash (POT.TO) confirmed merger discussions today. The tie-up would create one of the world's largest fertilizer companies.

AGU shares rose 7.3 percent, while POT jumped 11.5 percent.

Scotiabank (BNS.TO) said earnings per share were C$1.54, compared to C$1.45 in the same period a year ago.

The bank increased quarterly dividend by 2 cents to 74 cents per share, a 6% increase from last year.

Alimentation Couche-Tard (ATD.b.TO) will buy 53 stores in Louisiana, most in the Baton Rouge market, for an undisclosed price.

Energy stocks fell along with oil prices.

Oct. WTI oil fell 63 cents, or 1.3%, to settle at $46.35/bbl, the lowest in two weeks.

The National Energy Board says it won't be holding any hearings into the Energy East pipeline project this week in Montreal.

In economic news, Canada's Industrial Product Price Index (IPPI) rose 0.2% in July.

Higher prices for primary non-ferrous metal products were largely moderated by a decline in prices for energy and petroleum products.