The Toronto stock market was modestly higher Friday at the end of a volatile week as a partial U.S. government shutdown entered its fourth day.
The S&P/TSX composite index moved higher 23.53 to end Friday at 12,758.65
The Canadian dollar gained 0.33 cents to 97.13 cents U.S.
Mining stocks provided most lift on the TSX after losing substantial ground during this week. The base metals sector rose while December copper was up three cents to $3.30 U.S. a pound. Teck Resources was ahead 54 cents to $27.86.
The energy sector was up with the November crude contract on the New York Mercantile Exchange rising as offshore oil rigs in the Gulf of Mexico braced for tropical storm Karen.
Some 20% of U.S. oil production is sourced from the Gulf of Mexico. Suncor Energy climbed 44 cents to $36.69.
The telecom sector improved after Canada's major telecoms were given the go-ahead by the Federal Court of Appeal to challenge part of the CRTC's new wireless code of conduct that would affect three-year cellphone contracts retroactively.
Rogers, Bell, Telus and others say a new CRTC code mandating that contracts run no more than two years would prematurely apply to three-year contracts signed before the new code comes into effect on Dec. 2. Rogers was the strongest advancer, up 57 cents to $44.23.
Gold stocks declined, with Kinross Gold fading seven cents to $4.94.
The tech sector was also weak with CGI Group down 33 cents to $36.64 and BlackBerry off nine cents to $7.88.
The smartphone maker expects to receive a $500-million U.S. tax rebate within the next year. It wasn't clear from a regulatory filing whether the bulk of the tax refund would come from Canada, where the global smartphone company is based, or another jurisdiction.
A major TSX gainer was Air Canada. Its shares got lift of 52 cents or 13.1% to $4.49 on very heavy volume of 9.4 million shares, rising to their highest price since the fall of 2008, as analysts raised their price targets after the airline announced improved cost estimates.
On the economic slate, Western University’s Ivey Purchasing Managers’ Index for September stood at 51.9. The corresponding Ivey PMI figure for August 2013 was 51.0, for September 2012, 60.4 and for September 2011, 55.7. The market call was for the PMI to register at 53.6.
ON BAYSTREET
The TSX Venture Exchange gained 11.51 points to conclude Friday’s session at 955.36
All but four of the 14 Toronto subgroups were higher at day’s end, led by health-care, ahead 1.5%, metals and mining, up 1.2%, and global base metals, progressing 1%.
The four laggards were weighed mostly by gold, down 0.6%, information technology, sliding 0.5%, and real-estate, falling 0.2%.
ON WALLSTREET
Stocks moved higher Friday following two days of losses, but investors remained relatively cautious on the fourth day of the government shutdown.
The Dow Jones Industrials hiked 76.10 points to end the week at 15,072.60
The S&P 500 index gained 11.75 points to 1,690.41. The NASDAQ added 33.41 points to 3,807.75
The Dow was on track for a 1.3% drop, and the S&P 500 was down 0.2%. The NASDAQ has managed to hold on to gains for the week.
Shares of Facebook moved modestly higher after the company said it will start selling advertising on its photo sharing tool Instagram.
Facebook competitor Twitter made its IPO filing public late Thursday. Twitter revealed that it is still unprofitable. The company also said it will trade under the symbol TWTR, though it hasn't yet said on which exchange it will list. Goldman Sachs is the lead underwriter for the IPO.
Though Twitter's IPO is the most highly anticipated market debut since Facebook, investors were salivating over the IPO of a Chicago-based sandwich shop Friday. Potbelly surged 130% from its offering price as it began trading on the NASDAQ.
Tesla shares were higher following a three-day slide that shaved more than 10% of the value off the electric car maker's high-flying stock. Shares of Tesla have climbed more than 400% this year, and are trading at 100 times 2014 earnings estimates.
Shares of J.C. Penney continued to take a beating. The stock price of the troubled retailer fell below $8 U.S, its lowest since 1982.
The U.S. government shutdown has created plenty of uncertainty and left an estimated 800,000 federal employees waiting to go back to work.
The shutdown is also delaying the release of the government's monthly jobs report, originally scheduled to come out Friday morning. Since the recession, the report has become the most closely watched indicator on the economy.
With little else to focus on, investors will continue to watch Washington for developments on the budget deal and the looming deadline to raise the debt ceiling. Failure to raise the debt limit is likely to have a significant impact on the global economy, as well as stocks, bonds and currency markets.
Prices for the 10-year U.S. Treasury dragged, raising yields to 2.65% from Thursday’s 2.61%. Treasury prices and yields move in opposite directions.
Oil prices increased 31 cents to $103.62 U.S. a barrel.
Gold prices dipped $8.20 at $1,309.40 U.S. an ounce.
