Equity markets in Toronto opened lower on Friday following a unexpected fall in domestic retail sales data, with mining, energy and financial issues leading broader declines.
The S&P/TSX composite index docked 64.19 points to open Friday at 14,706.45
The Canadian dollar fell 0.18 to 81.62 cents U.S.
Cenovus Energy Inc is in exclusive talks to sell Canadian oil and gas royalty lands to the Ontario Teachers' Pension Plan in a deal that could fetch $2.5 billion to $3 billion, according to four sources familiar with the matter.
The sources, who asked not to be named as they have not been cleared to discuss the matter publicly, said the discussions between Calgary-based Cenovus and Ontario Teachers, one of Canada's top pension fund managers and investors, are at an advanced stage. Cenovus shares picked up a penny to $21.52.
Barclays cut the target price on AGF Management to $7.00 from $8.00 considering that the company’s retail assets under management receded in the quarter. AGF shares dipped a penny to $6.51.
National Bank Financial initiated coverage on Boulder Energy Ltd with an outperform rating saying that the company is a junior, oil-weighted E&P company with a strategy focused on organic growth through pure-play development of the Belly River resource in west central Alberta. Boulder shares gave way 24 cents, or 2.8%, to $8.31.
BMO raised rating on George Weston Ltd to outperform from market perform based on the low implied valuation of Weston Foods, and expectations of improving operating income. Weston shares moved ahead 80 cents to $100.78.
BMO cut the target price on Canadian Pacific Railway to $245.00 from $255.00 on reduction of rail demand in Western Canada due to narrow pricing spreads for heavy crudes. CP shares were static at $207.47.
On the economic ledger, Statistics Canada reported that retail sales, retail sales edged down 0.1% in April to $42.5 billion, following gains in February and March. Lower sales at food and beverage stores as well as electronics and appliance stores offset higher sales in most other sub-sectors.
Meanwhile, the Consumer Price Index rose 0.9% in the 12 months to May, after increasing 0.8% in April. The agency added that, a seasonally-adjusted monthly basis, inflation increased 0.4% in May, following a 0.1% decline in April.
ON BAYSTREET
The TSX Venture Exchange poked up 1.64 points to 684.26
Of the 14 TSX subgroups, health-care eked up 0.02%. Everything else went south, most notably, metals and mining, lower by 1.5%, while financials and materials lost 0.8% each.
ON WALLSTREET
U.S. stocks traded lower on Friday, following a record close on the Nasdaq, as investors watched developments in the Greece debt talks.
The Dow Jones Industrials erased 23.52 points to 18,092.32, after yesterday’s 180-point jump, with Visa leading decliners and McDonald's the leading gainers.
The S&P 500 index dropped 4.65 points to 2,116.59, with utilities and financials leading nine sectors lower and health care the only advancer.
The NASDAQ fell 10.56 points from Thursday’s all-time high to 5,122.39
Euro-zone officials are expected to hold an emergency summit Monday after failing to reach an agreement on a cash-for-reforms deal for Greece at a meeting Thursday. Athens has said without further aid, it will be unable to make a 1.5-billion-euro ($1.7 billion U.S.) debt payment to the International Monetary Fund due on June 30.
Prices for 10-year U.S. Treasuries gained sharply, lowering yields to 2.28% from Thursday’s 2.33%. Treasury prices and yields move in opposite directions.
Oil prices slipped 80 cents a barrel to $59.65 U.S.
Gold prices were unchanged at $1,202.00 U.S. an ounce.
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