Mining and energy stocks led the way to a lower session on the Toronto stock market Friday amid falling prices for oil and copper.
The S&P/TSX Composite Index dipped 60.34 points to greet noon Friday at 12,686.
The Canadian dollar fell 0.37 cents to 96.79 cents U.S.
The Toronto market hasn’t fared nearly as well as its American cousins, gaining just over 2% for this month and the year to date. The markets have been particularly dragged down by mining stocks. The base metals sector has fallen 15% this year amid weak demand for commodities and a stubbornly slow global economic recovery.
And the gold sector has plunged 32%. Outside of the mining sector, many sectors have performed quite well, with financials up almost 6%, industrials ahead 17% and consumer staples up about 12%.
The energy sector was down and Canadian Natural Resources stepped back 43 cents to $31.51.
The base metals sector dropped while July copper edged three cents lower to $3.29 U.S. a pound. Teck Resources lost 42 cents to $28.17.
The gold sector was down Goldcorp Inc. faded 36 cents to $29.89.
There was also acquisition activity in the mining sector.
New Gold Inc. has reached a friendly deal to acquire Rainy River Resources Ltd., which has an advanced gold project in Ontario. The offer values Rainy River at about $310 million, net of its cash balance.
New Gold is offering $3.83 per share to Rainy River shareholders. New Gold shares declined 61 cents to $7.05 while Rainy River surged 95 cents to $3.65.
Hundreds of protesters attempted to storm a Canadian gold mine office in eastern Kyrgyzstan Friday, near the village of Barskoon. The incident furthered a protest that began earlier this week to demand that the mine, operated by Toronto-based Centerra Gold, be nationalized and provide more social benefits in the impoverished nation.
The mine is the largest foreign-owned gold mine in the former Soviet Union. Centerra shares were 14 cents lower to $4.01.
Financials were also a weight as CIBC shed 80 cents to $78.42 after investment banking firm KBW cut its price target to $76. It cited a potential for lower earnings and risk from the company’s Aeroplan agreement with Aimia. The agreement is set to expire at the end of the year.
Bank of Nova Scotia says Rick Waugh will retire as chief executive officer on Nov. 1, after a decade in the role. The new CEO will be Brian Porter, who has been president of the bank since last November. Scotiabank shares edged 32 cents lower to $58.91.
Canadian National Railway was also in focus after JPMorgan Chase upgraded its stock to neutral from underweight with a target price of $110. Its shares gained 44 cents to $106.40 but the stock is still up about 30% from its 52-week low.
In the economic docket, Statistics Canada said this country Gross Domestic Product grew 0.2% in March, and on a quarterly basis by 0.6%, the fastest pace in six quarters, bolstered by a 1.5% increase in exports. On an annualized basis, GDP growth was around 2.5%, ahead of what experts projected.
ON BAYSTREET
The TSX Venture Exchange moved 0.59 points lower to 960.15
All but one of the 14 Toronto subgroups were lower, weighed mostly by metals and mining, down 1.8%, materials, off 1.1%, and gold, sliding 1%.
Only health-care held out against the negative tide, inching up 0.3%.
ON WALLSTREET
U.S. stocks were under pressure early Friday, but the major indexes are on track to end the month with solid gains. So far this month, they're up between 3% and 4%, bringing their advance for the year to a hefty 16%.
The Dow Jones Industrials made its way into positive territory by 7.42 points to break for lunch Friday at 15,332.
The S&P 500 index eked forward 1.13 points to 1,655.54. The tech-rich NASDAQ Composite regained 0.85 points to 3,492.15
In corporate news, NASDAQ said Netflix will join the NASDAQ-100 on June 6, replacing healthcare supplier Perrigo
Krispy Kreme said sales and earnings jumped in the first quarter, sending shares of the doughnut maker up 13%.
Lion's Gate shares rose after the media company said sales jumped 71% in the past fiscal year, helped by movies in the teen-oriented "Hunger Games" and "Twilight" franchises.
Shares of Palo Alto Networks plunged after the technology company swung to a big loss in the most recent quarter.
Economically speaking, Stocks briefly pared losses following a report on consumer sentiment. The Thomson Reuters/University of Michigan index of consumer sentiment rose in May to the highest level in nearly six years, confirming earlier readings.
Consumers have been encouraged by an improving outlook for the economy. But a separate report showed that personal income and spending both fell in April, surprising economists who had predicted a rise.
Meanwhile, the Chicago Purchasing Managers' Index bounced back in April, rising to the highest level since March 2012.
Prices for the 10-year U.S. Treasury sagged, raising yields to 2.15% from Thursday’s 2.12%. Treasury prices and yields move in opposite directions.
Oil prices slumped 77 cents to $92.84 U.S. a barrel.
Gold prices sank $18.30 to $1,393.20 U.S. an ounce
