The Toronto stock market lurched in negative territory much of Wednesday as gold prices moved further into record territory, oil prices were stable above $108 U.S. a barrel and investors took in a conservation plan by the Alberta government.
The S&P/TSX Composite Index closed Wednesday’s trading down 67.88 points to 14,202.65
The Canadian dollar was off session lows as higher commodity prices helped push the currency up 0.39 of a cent to 104.16 cents U.S., after earlier running as high as 104.5 cents U.S., its highest level since November 2007.
The energy sector was down as Suncor Energy fell 80 cents to $42.80 while Canadian Natural Resources declined 68 cents to $47.27.
Investors also took in news that the Alberta government is proposing new protected sites in the oilsands region that would cover three times as much area as Banff National Park.
The plan could force oilsands and mineral companies to surrender rights to land they’ve already leased but it allows already planned oil and gas development to proceed even in the conservation areas. And it deliberately avoids protecting any new land in the richest oilsands area where development is heaviest.
The financials sector weighed on the TSX, as Royal Bank lost a nickel to $60.25 and Scotiabank lost 39 cents to $58.68, while TD Bank tacked on 10 cents to $85.39
The gold sector turned lower as Barrick Gold Corp. lost 27 cents to $52.09.
The base metals sector was down as copper prices also advanced, with the May contract in New York ahead 10 cents at $4.37 U.S. a pound. Teck Resources lost 23 cents to $56.15 while HudBay Minerals gained seven cents to $16.60.
In corporate news, Cephalon Inc. has formally rejected a hostile takeover bid by Canada’s Valeant Pharmaceuticals International saying the $73 U.S. a share offer "significantly undervalues" the U.S. company.
Valeant, formed through last year’s $3.2-billion merger with Biovail, said last week it was not willing to engage in a bidding war for Cephalon. Cephalon shares slipped nine cents to $77.28 U.S. while Valeant shares lost $1.78 to $50.31.
Peak Energy Services Ltd. has agreed to a takeover offer from Clean Harbors, Inc. of Massachusetts. The offer of 95 cents per share in cash values the Calgary-based drilling services company at $200 million, 28% above Tuesday’s closing price for Peak’s shares. Peak shares surged 19 cents or 25.7% to 93 cents.
Tranzeo Wireless Technologies, Inc. shares were up three cents to 39.5 cents as the company narrowed its loss to $7.9 million in the fourth quarter as revenues stayed largely the same.
ON BAYSTREET
The TSX Venture Exchange gained 9.09 points to 2,363.43, while the Nasdaq Canada index added 6.80 points to 767.58
In Toronto, nine of the 14 subgroups were down on the day. Health-care stocks tumbled 1.9%, energy 1.2% and consumer discretionaries 0.5%.
Among the gainers, information technology tacked on 0.6%, while utilities and telecoms inched up 0.1% each.
ON WALLSTREET
In New York, stocks held their gains Wednesday as strength in the technology sector offset weakness in energy producers and industrial names.
The Dow Jones industrial average moved ahead 32.85 points to 12,426.80
The S & P 500 recovered 2.91 points to 1,335.54. The tech-rich Nasdaq Composite Index added 8.63 points, to 2,799.82
Tech stocks were among the best performers with Cisco leading gainers on the Dow. Hewlett-Packard and Microsoft were also strong, while Caterpillar dragged on the blue-chip index.
Energy stocks Chevron and Exxon came under pressure after the government's weekly inventory report showed smaller-than-expected declines in U.S. supplies of oil and gasoline, raising fears that energy demand is waning.
After rising above $109 U.S. a barrel, oil prices pared gains. Gold prices, which hit a record trading high earlier in the session, also cooled.
As such, the market is looking ahead to next week, when the corporate reporting period unofficially gets underway with Alcoa's first-quarter results on Monday.
Dish Network announced Wednesday that it won ownership of Blockbuster for $320 million U.S. in a bankruptcy court auction. Blockbuster put itself up for sale in February after filing for bankruptcy last fall.
Ranked in the last spot on last year's Fortune 500 list, Blockbuster shares now trade on the Pink Sheets -- at less than eight cents U.S. a piece.
Monsanto reported quarterly earnings of $1.87 U.S. a share, slightly higher than analysts were expecting. Despite the strong results, shares of the agricultural product giant fell 3%.
After the bell, investors get results from home furnishings retailer Bed Bath & Beyond, which is expected to earn 97 cents U.S. a share.
On the economic front, no major reports were on the agenda for Wednesday, but investors will kept an eye on budget negotiations in Congress and political turmoil in the Middle East and North Africa.
Congress risks a federal government shutdown if it fails to approve a spending bill by Friday.
Meanwhile, market strategists name escalating political turmoil in the Middle East and North Africa, and its impact on oil prices, as the biggest threat to the market over the long term.
The price on the benchmark 10-year U.S. Treasury continued to sink pulling yields up to 3.55% from Tuesday’s 3.49%. Treasury prices and yields move in opposite directions.
Oil for February delivery was up 38 cents to $108.72 U.S. a barrel.
Gold futures for June delivery were up $6.90 to $1,459.40 U.S. an ounce after touching a nominal all-time high of $1,463.70 U.S. an ounce earlier in the session.
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