Equities in Toronto fell just short of the breakeven mark on Monday, as Canada's rejection of a foreign bid for Progress Energy Resources Corp rippled through the energy stocks and tempered gains in mining stock.
The S&P/TSX composite fell 12.44 points to finish at 12,403.54
The Canadian dollar gained 0.18 cents to 100.71 cents U.S.
Oil and gas shares dominated the decliners after the government blocked Malaysian state oil firm Petronas' $5.17-billion bid for Progress. Progress, which was also hit by a number of price target cuts after the decision, tumbled $2.01, or 9.3%, to $19.64
The surprise move blocking the Progress Energy deal could signal problems for the much larger $15.1-billion Chinese offer for oil producer Nexen Inc, which was the most influential decliner on the index. Nexen slumped 4.4% to $24.04
Encana Corp gave back 94 cents, or 4% to $22.84, while Talisman Energy dropped 49 cents, or 3.8%, to $12.55.
Gold miners tracked pricier bullion, which rebounded following its biggest one-day drop in more than three months on Friday. The precious metal miners pushed the overall materials group up, with Barrick Gold leading the index higher, rising 50 cents, or 1.3%, to $39.05. Goldcorp gained 33 cents, or 0.8%, to $43.38.
Agrium Inc shares were the second most influential gainer, rising $3.31, or 3.2%, to $107.26 after the Canadian fertilizer maker and agricultural goods retailer said on Monday its board plans to double its annual dividend payout.
ON BAYSTREET
The TSX Venture Exchange fell 7.19 points to 1,308.43
Nine of the 14 Toronto subgroups were up on the day, led by materials and gold, up 1.1% each, while metals and mining chugged ahead 0.7%.
The five laggards were weighed mostly by energy, off 1.4%, telecoms, down 0.6%, and information technology, 0.5% to the bad.
ON WALLSTREET
U.S. stocks fought their way slightly higher Monday as investors took a cautious approach at the start of a big week for Corporate America.
The Dow Jones Industrial average recovered 2.38 points to close at 13,345.90
The S&P 500 index eked ahead 0.61 to 1,433.80, while the Nasdaq gained 11.33 to 3,016.96
Dow bellwether Caterpillar kicked off the week's earnings parade with a disappointing outlook, even as its quarterly results came in better than expected, citing continued economic weakness and uncertainty.
After a weak open, Caterpillar held on to a gain, making it among the best performers on the Dow. But General Electric and Microsoft, which reported lackluster earnings last week, continued to drag on the blue-chip index.
The S&P 500 also lost ground, as a 5% decline in shares of VF Corp., the maker of North Face jackets and Wrangler jeans, weighed on the index. The company, which is also behind brands like Seven for all Mankind and Vans, posted revenue that missed expectations.
A 13% drop in shares of Monster Beverage added to pressure on the benchmark index. Monster's stock took a tumble after the New York Times first reported that five people may have died in recent years after drinking the company's popular energy drink, citing reports recently released by the Food and Drug Administration.
The Nasdaq slipped slightly, as gains in Netflix helped buoy the tech-heavy index. The online streaming service opens its books later this week, as do fellow tech heavyweights Facebook, Apple and AT&T.
But first Yahoo, with new CEO Marissa Mayer at the helm, will be in the spotlight when it reports after the bell Monday.
Meanwhile, shares of DISH Network rose after the company reached an agreement with Voom HD Holdings, which owns Cablevision and AMC Networks, on Sunday. DISH agreed to pay $700 million U.S. in cash to settle a dispute over wireless multi-channel video distribution and data service licenses.
The price of the benchmark 10-year U.S. Treasury gained, raising the yield down to 1.80% from Friday’s 1.77%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.75 to $88.30 U.S. a barrel.
Gold prices picked up $4.30 to $1,728.20 U.S. an ounce.
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