Equity markets gathered a small amount of steam on Monday as gains in oil and precious metals prices drove energy and gold mining issues higher, while Valeant Pharmaceuticals International weighed heavily after delaying its earnings report.
The S&P/TSX Composite Index began Monday up 16.08 points to 12,813.87
The Canadian dollar was unchanged to 74 cents U.S.
Valeant Pharmaceuticals International said on Sunday that Chief Executive Officer Michael Pearson would return from medical leave effective immediately, and it postponed the release of its fourth-quarter results planned for Monday.
Valeant shares started the week down $11.03, or 10%, to $98.80.
Sources say proposed federal government bailout of Bombardier Inc's new CSeries jet manufacturing program would reduce the company's stake in the money-losing aircraft, taking it off the plane maker's books and boosting results in the short-term.
Bombardier shares gained five cents, or 4.7%, to $1.11.
CIBC raised the target price on Aecon Group Inc to $17.00 from $16.00. Aecon shares dove 63 cents, or 4.3%, to $14.04.
RBC raised the target price on Semafo to $5.00 from $4.25, with a sector perform rating. Semafo shares gained 24 cents, or 5.3%, to $4.75.
Berenberg initiated coverage on Lundin Mining with a hold rating, and a $4.00 target price. Lundin shares were static at $3.72.
Suncor Energy Inc advanced 1.1% to $33.26 and Canadian Natural Resources gained 1.4% to $27.77.
Gold was on track for its biggest monthly gain in four years, as the precious metal rediscovers its role as a shelter for risk-averse investors in the face of tumbling equities and fears of a global economic slowdown.
Barrick Gold Corp advanced 1.7% to $18.58, Goldcorp Inc advanced 1.3% to $18.97.
On the economic calendar, Statistics Canada reported Monday morning that its industrial product price index rose 0.5% in January, mainly as a result of higher prices for motorized and recreational vehicles. Lower prices for energy and petroleum products largely moderated the increase in the index.
The raw materials price index declined 0.4% during the same month, weighed by lower prices for crude energy products.
ON BAYSTREET
The TSX Venture Exchange gained 1.57 points to 539.63
All but two of the 13 TSX subgroups were higher, gold advanced 2.1%, energy shot higher 1.3%, and materials improved 1.2%.
The two laggards were health-care, staggering 2.2%, and financials, off 0.2%.
ON WALLSTREET
U.S. stocks struggled for gains Monday, the last trading day of February, amid higher oil prices and mixed news out of China overnight.
The Dow Jones Industrial average dropped 1.98 points to 16,637.99, with Exxon Mobil the top advancer and Merck the greatest laggard.
The S&P 500 moved downward 2.4 points to 1,945.65. Materials traded more than 0.5% higher to lead S&P 500 advancers in morning trade.
The NASDAQ index gained 10.22 points to 4,600.69
The People's Bank of China cut further the reserve requirement ratio, the amount of cash the country's banks have to hold, by 0.5 percentage points after China's markets closed Monday. The cut was the first since October and the fifth since last February.
The reserve requirement ratio comes into effect Tuesday and means most large Chinese banks will have a reserve ratio of 17 percent
In economic news, Chicago PMI came in at 47.6 in February, missing expectations and dropping from 55.6 in January. Pending home sales fell 2.5% in January, versus expectations for a slight gain.
Prices for the 10-year Treasury inched up, lowering yields to 1.75% from Friday’s 1.76%. Treasury prices and yields move in opposite directions.
Oil prices acquired 70 cents a barrel to $33.48 U.S.
Gold prices gained back $9.78 to $1,233.24 U.S. an ounce.
Related Stories
