Equity markets in Toronto were slightly higher Monday as traders generally avoided risk in the wake of Russia's invasion of Ukraine's Crimean peninsula.
The S&P/TSX composite index ended the day up 3.15 points to 14,212.74
The Canadian dollar was flat at 90.27 cents U.S.
Investors sought the perceived safe haven of U.S. dollars and Treasuries after Russia took effective control of the Crimean peninsula, calling it necessary to protect citizens living there. There are worries that Russia might seek to expand its control by seizing other parts of eastern Ukraine.
The gold sector advanced, as traders seeking safety pushed April bullion up. Barrick Gold concluded the day up 17 cents to $22.73, while Goldcorp acquired 55 cents to $30.32.
The energy sector rose with oil prices spiking almost $2 as Russia's military advance into Ukraine raised fears of economic sanctions against a country that is one of the world's major energy producers.
Pengrowth Energy Corp. registered a $91.1-million net loss, equivalent to 17 cents per share, in the fourth quarter. Analysts had expected a net loss of three cents a share and its stock slipped 45 cents to $7.01.
The TSX was also supported by a strong earnings report from auto parts giant Magna International. The company’s quarterly net earnings rose 31% from a year ago to $458 million U.S. or $2.03 a share as sales jumped 14% to $9.17 billion U.S.
The company also raised its quarterly dividend by 19% to 38 cents per share and Magna shares gained $5.18, or 5.3%, to $103.75.
The base metals component was down mid-afternoon as May copper lost two cents to $3.17 U.S. a pound. Prices for the metal were also pressured by Chinese data as both the official and HSBC versions of the country's monthly manufacturing survey showed the sector was weaker last month than in January.
Teck Resources, one of the starts of that sector, lost 33 cents to $24.30.
On the economic slate, Statistics Canada reported this morning that its industrial products price index rose 1.4% in January, on the back of higher prices for energy and petroleum products. The Raw Materials Price Index increased 2.6% in the same month, as a result of higher prices for crude energy products.
ON BAYSTREET
The TSX Venture Exchange faded 7.27 points to 1,018.10.
All but five of the 14 Toronto subgroups were lower by Monday’s close with metals and mining stocks falling 2.7%, global base metals off 1.4%, and industrial issues subsiding 0.7%.
The five gainers were pulled upwards by gold stocks, up 1.5%, consumer discretionary stocks, gaining 0.8%, and materials picking up 0.5%.
ON WALLSTREET
U.S. stocks followed world markets lower Monday as investors worried about increased tensions between Russia and Ukraine. But the market recovered from the worst of the selloff as the day wore on.
The Dow Jones Industrial Average skidded 153.68 points -- off its lows of the day -- to 16,168.03
The S&P 500 index faded 13.72 points to 1,845.73. The NASDAQ subtracted 30.82 points to 4,277.30
In company news, Men's Wearhouse said Monday that it has entered into merger talks with its rival retailer Jos. A. Bank
The tension also triggered a spike in wheat and corn prices, as Ukraine is a leading exporter of both grains. The Teucrium Wheat and Teucrium Corn ETFs both rose, and investors expected more gains in the coming days.
Investors seemed to be very concerned by threats of serious sanctions against Russia from the United States and Europe.
Russia's central bank reacted by hiking interest rates, saying it wanted to maintain financial stability and inflation levels as market volatility increases.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.61% from Friday’s 2.66%. Treasury prices and yields move in opposite directions.
Oil prices gained $2.05 to $104.64 U.S. a barrel.
Gold prices spiked $29.90 to $1,351.50 U.S. an ounce.
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