The Toronto stock market was higher Tuesday afternoon with the resource sectors positive as buyers started to nibble at companies that have sustained a severe mauling because of a steep drop in oil prices and other economic concerns.
The S&P/TSX composite index tenaciously made its way into the green 51.56 points to end the day at 14,195.73, but with gains held back by banks as pessimism over the Canadian economy prompted investors to shed financials.
The Canadian dollar gained 0.29 cents to 87.42 cents U.S.
Canadian energy companies continue to be impacted by plunging oil prices. Baytex Energy cutting its monthly dividend by more than half to 10 cents a month. It also cut its 2015 spending plans by 30% from original tentative plans. Baytex is also cutting production ranges but its shares gained 44 cents, or 2.7%, to $16.90.
Another bright spot on the TSX was Talisman Energy Inc., which said several parties, including Spanish energy company Repsol, have approached it about potential deals. Talisman and Repsol held inconclusive talks during the summer but the Calgary company's shares have plunged about 60% since then, making it a more attractive takeover target. Its shares rose 51 cents, or 11.9% to $4.81.
Miners also provided some lift to the TSX, with the gold sector ahead, Barrick Gold helping out by advancing 52 cents, or 3.9%, to $13.79.
The base metals sector was up as March copper rose four cents to $2.93 U.S. a pound. Teck Resources docked eight cents, however, to $15.85
Elsewhere, Hudson's Bay Co. had a quarterly net loss of $13 million or seven cents a share and "normalized" earnings of $116 million, both improvements from the same time last year. Retail sales nearly doubled to $1.91 billion from $984 million a year earlier and its shares edged up 51 cents to $24.00.
Financials led decliners. Financials have been steadily sliding since last week after the big banks delivered a mixed bag of earnings and warned of a challenging 2015. Investors have been cutting their exposure to banks because of worries that falling oil will negatively impact economic growth and cut back on bank lending.
AGF Management Ltd. was a major decliner, down $1.42, or 14.6%, to $8.28, after the company said it plans to cut its quarterly dividend by 70% to eight cents a share as of the first quarter of 2015.
ON BAYSTREET
The TSX Venture Exchange regained 5.05 points to end Tuesday at 684.88
The 14 Toronto subgroups were evenly split, as gold led gainers, up 4.5%, materials tacked on 2.4%, and metals and mining issues advanced 2.1%.
The seven laggards were weighed mostly by health-care, 1.4% less hale, telecoms, diving 0.6%, and financials, down 0.5%.
ON WALLSTREET
U.S. stocks ended mixed on Tuesday, with the NASDAQ Composite rallying after stiff losses, as investor concern about the global economy ebbed.
The Dow Jones Industrials came off its all-day lows, but was still down 51.28 points to end Tuesday at 17,801.20, with blue-chip losses led by Verizon Communications after the wireless carrier late Monday said promotional offers and price cuts would dent its fourth-quarter profit.
Merck & Co. also weighed on the Dow after saying it would go ahead with its $8.4-billion U.S. acquisition of Cubist Pharmaceuticals regardless of a court ruling that could hasten onto the market generic versions of Cubist's best-selling product.
The S&P 500 dipped 0.49 points to 2,059.82, with telecommunications the poorest performer and energy the best among its 10 major sectors.
The NASDAQ index recovered 25.78 points to 4,766.47.
Autozone jumped after the auto-parts retailer reported quarterly profit and revenue above estimates. H&R Block fell after the tax-preparation firm reported an adjusted quarterly loss that was larger than expected.
Whole inventories rose 0.4% in October versus expectations for a 0.1% gain.
Another report Tuesday had small business optimism rising in November to its highest level in almost eight years.
Overseas, the Shanghai Composite Index tanked more than 5% and gold jumped 2.7% as investors sought a safe haven.
Moving to propel local governments from using hazy financing instruments to raise funds, China stepped up its efforts at creating a more transparent municipal bond market.
Prices for 10-year U.S. Treasuries jumped, lowering yields to 2.22% from Monday’s 2.25%. Treasury prices and yields move in opposite directions.
Oil prices gained 71 cents to $63.76 U.S.
Gold prices hiked $33.60 at $1,228.50 U.S.
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