The Toronto stock market found its way doggedly higher Monday, despite the misfortunes of the oilpatch, amid another forecast that suggested oil prices will stay low for an extended period.
The S&P/TSX composite index ended a roller-coaster day up 3.09 points to 14,312.50
The Canadian dollar gained a solid 0.25 cents to 83.72 cents U.S., ahead of the Bank of Canada's announcement on interest rates on Wednesday.
The TSX energy sector declined 1.6% and oil prices fell in electronic trading in New York after JPMorgan Chase became the latest financial institution to slash its oil price forecast for 2015.
The bank said Monday that Brent crude -- a global benchmark for oil -- will average out at $49 U.S. a barrel, well down from its previous forecast of $82 U.S. a barrel. JPMorgan Chase expects to see a U-shaped recovery in oil prices, rising to $90 U.S. a barrel in 2019.
Oil has plunged 55% from the highs of June 2014 and is down 40% just since the end of November after OPEC refused to cut production levels to support prices.
Meanwhile, oilpatch companies continue to react to the collapse in oil prices.
CanElson Drilling Inc. shares gave back 17 cents, or 4,3%, to $3.78 as the company said it will reduce its quarterly dividend by 50% to three cents and reduce its capital budget by 80% to $12.9 million
Among gold issues, Goldcorp has offered to buy full control of Probe Mines Ltd. and its Borden gold project near Chapleau, Ont., in a friendly, all-stock takeover valued at $526 million.
Goldcorp currently owns about 9.3% of Probe. Its shares were up 18 cents to $28.67 while Probe was up $1.70, or 50.6% at $5.06.
The leader among the gaining groups was in health-care, where Extendicare starred, gaining 16 cents, or 2.5%, to $6.63.
The base metals sector advanced, even as copper fell amid speculation about how the Chinese economy fared in the latest quarter. China is expected to report Tuesday that economic growth slowed to an annual 7.2% rate from 7.3% in the prior quarter.
The gain in the metals sector followed a 15% plunge last week after copper at one point fell below $2.50 U.S. a pound and the World Bank revised downward its economic growth forecast.
On Monday, the March copper contract in New York was down four cents in electronic trading to $2.57 U.S. a pound. Teck Resources added 21 cents, or 1.5%, to $14.41.
On today’s economic calendar, Statistics Canada reported that foreigners bought only $4.3 billion of our securities in November, while Canadian investments in foreign securities were boosted to $1.8 billion, all of it in bonds.
Acquisitions from abroad were mainly in Canadian corporate bonds as non-residents reduced their exposure to Canadian stocks for the first time in 15 months.
ON BAYSTREET
The TSX Venture Exchange gained 5.85 points to 673.16.
All but two of the 14 Toronto subgroups were higher on the day, as health-care was 0.9% haler, while metals and mining and information technology each climbed 0.8%,
Energy was 1.6% to the bad, while real-estate retreated 0.4%.
ON WALLSTREET
Markets were closed for Martin Luther King Day.
