Equity markets in Canada’s biggest centre opened steady on Monday as gains in the consumer sector countered losses in energy shares, while investors kept a wary eye on the fast spreading coronavirus outbreak.
The TSX Composite Index recovered 8.01 points to open Monday to 17,663.50
The Canadian dollar lost 0.07 cents to 75.06 cents U.S.
Shanta Gold on Monday said it had acquired Barrick subsidiary Acacia Exploration's project in southwestern Kenya in a $14.5-million deal which gives the Tanzania-focused miner its first asset outside the country.
Barrick gained 17 cents to $24.38.
RBC raised the price target on Constellation Software to $1,700 from $1,500. Constellation strengthened $11.74 to $1,480.85.
Credit Suisse cut the price target on Husky Energy to $12.00 from $15.00. Husky shares declined 28 cents, or 3.3%, to $8.19.
RBC raised the price target on Innergex Renewable Energy to $22.00 from $17.00. Innergex shares ballooned 42 cents, or nearly 2%, to $21.69.
On the economic scene, January housing starts were fairly flat at 210,915 units in January, compared to 212,212 units in December, according to Canada Mortgage and Housing Corporation, while building permits increased 7.4% to $8.7 billion in December.
Increases were reported in five provinces, led by Ontario and Quebec.
ON BAYSTREET
The TSX Venture Exchange slid 1.77 points to close Friday at 572.39.
Seven of the 12 TSX subgroups were stronger, with gold brighter by 0.8%, utilities clicking 0.7% higher, and information technology 0.5% to the good.
The five laggards were weighed most by health-care, sicker by 1.4%, energy, 1.2% less energetic, and communications 0.3% softer.
ON WALLSTREET
Stocks were little changed on Monday as investors assessed the economic impact of the coronavirus outbreak in China.
The Dow Jones Industrials gained 60.16 points to 29,162.67.
The S&P 500 eked higher 6.77 points at 3,334.48.
The NASDAQ hiked 35.48 points to 9,555.99.
The major averages are coming off their first loss in five sessions, with the Dow falling more than 200 points on Friday. Mounting concerns over how China’s economy, the second-largest in the world, pressured stocks.
Despite Friday’s losses, however, Wall Street logged in its biggest weekly gain since June as the S&P 500 jumped 3.2%. Strong economic data along with solid corporate earnings reports fueled the market’s weekly surge.
Apple shares fell more than 1% amid concerns the outbreak will hurt production of the tech giant’s best-selling product, the iPhone. Foxconn, one of Apple’s biggest suppliers, got approval to resume production at a key manufacturing plant but only 10% of its workforce has returned.
In corporate news, Xerox raised its offer to buy HP Inc to $24 per share, or about $34 billion. That’s up from a $22 per share offer made by Xerox in November. Xerox shares dipped 0.8% while HP Inc traded more than 4% higher.
Meanwhile, L Brands is reportedly closing in on a sale of its Victoria’s Secret brand to Sycamore Partners. L Brands shares jumped more than 3%.
As of Sunday night, China said a total of 40,171 cases of coronavirus had been confirmed and 908 people had died, while 14 Americans have tested positive for the virus aboard a cruise ship quarantined in Japan. The death toll from the coronavirus has also overtaken that of the SARS outbreak in the early 2000s.
Chinese President Xi Jinping said China would speed up development of drugs aimed at treating pneumonia-like viruses. Xi also said China will win the fight against the coronavirus. He noted, however, the situation remains dire.
Prices for the 10-Year U.S. Treasury nicked higher, lowering yields to 1.57% from Thursday’s 1.58%. Treasury prices and yields move in opposite directions.
Oil prices backed off 22 cents to $50.10 U.S. a barrel.
Gold prices hiked $2.80 to $1,576.20 U.S. an ounce.
