Canadian shares advanced as all three major industries gained amid upbeat economic data from the U.S. and Europe and ahead of an upcoming policy meeting of the U.S. Federal Reserve.
The resource-heavy benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 0.8 percent to 13,224.75 at 12:14 p.m. in Toronto. Nine out of ten share groups advanced as almost two stocks gained on every one share that declined.
Output at U.S. factories, mines and utilities rose 1.1 percent after a revised 0.1 percent gain in October that was previously reported as a decline, a report from the Federal Reserve showed in Washington. The index of industrial production rose to 101.3, exceeding for the first time its pre-recession peak in December 2007. In Europe, data today showed that euro zone businesses ended the year on a high, helped by a jump in new orders.
Fed officials meet tomorrow for two days, and most recent U.S. economic data suggest that the beginning of the end of the massive bond-buying program will come sooner rather than later.
The financials group, which accounts for 35.2 percent of the main measure, more than any other group, led advances with a 1.1 percent gain. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, added 1.6 percent to C$69.30. Toronto-Dominion Bank (TSE:TD), the second-largest, increased 1.3 percent to C$95.89.
Alaris Royalty Corp. (TSE:AD), which provides alternative financing to businesses, slumped 5.1 percent after analysts at Raymond James Financial Inc. downgraded the stock’s recommendation to "market perform" from "outperform."
The materials sub-index, which includes mining shares, rose 1 percent as copper futures headed for the longest rally in three years on falling global inventories. First Quantum Minerals Ltd. (TSE:FM), a copper miner, increased 0.6 percent to C$17.10.
Copper futures for delivery in March advanced 0.3 percent to $3.3215 a pound at 10:57 a.m. on the Comex in New York, heading for a seventh straight gain.
Cameco Corp. (TSE:CCO), the world's third-largest uranium producer, rose 1.4 percent to C$22.39. The Saskatoon-based company said jet boring in ore is underway at the Cigar Lake uranium project in northern Saskatchewan. It said it’s on track to begin ore production at Cigar Lake in the first quarter of 2014.
Turquoise Hill Resources Ltd. (TSE:TRQ), the Rio Tinto Group unit that produces copper in Mongolia, surrendered 0.6 percent to C$3.37. The Vancouver-based miner said its parent company had secured extended commitments from the banks that have agreed to finance the underground expansion of the Oyu Tolgoi mine. The extension—to March 31—gives Rio Tinto, which owns approximately 51 percent of Turquoise Hill and operates Oyu Tolgoi, more time to resolve a dispute over costs with the government of Mongolia.
Primero Mining Corp. (TSE:P), the operator of the San Dimas gold mine in Mexico, slumped 6 percent to C$4.91. The Vancouver-based company said it has agreed to buy Brigus Gold Corp. (TSE:BRD) in a share exchange deal it values at about C$220 million. Brigus shareholders will also get part of a share in a new company that will hold Brigus’ interests in certain projects in Saskatchewan and Mexico.
The energy sector, the main index's second most heavily weighted group, increased 0.3 percent as oil, Canada’s largest export, gained ahead of the Fed meeting. Suncor Energy Inc. (TSE:SU), the nation's largest energy company by market value, edged up 0.9 percent to C$36.13.
January crude oil added 0.7 percent to $97.23 a barrel on the New York Mercantile Exchange.
The information technology group advanced 0.9 percent. BlackBerry Ltd. (TSE:BB), the struggling smartphone maker, added 1.3 percent to C$6.51 as the company’s executive vice-president in charge of global sales and its head of mergers and acquisitions strategy expected to depart, according to sources. Separately, analysts at Sanford C. Bernstein raised their rating on the stock to "market perform" from "underperform."
Wi-LAN (TSE:WIN), which owns patents for technology used in mobile phones, tacked on 0.6 percent to C$3.35 after saying it has entered a patent agreement with Panasonic Corp. (OTCMKTS:PCRFY) under which Panasonic will transfer more than 900 patents and applications related to semiconductor device technologies to a Wi-LAN unit.
The health care share group spiked 1.2 percent. Valeant Pharmaceuticals International Inc. (TSE:VRX), Canada’s largest drug-maker, jumped 2.7 percent to C$116.15. The Montreal-based company agreed to buy medical-device company Solta Medical Inc. (NASDAQ:SLTM) for $2.92 a share, or $250 million.
Cangene Corp. (TSE:CNJ), a Canadian biopharmaceutical firm, fell 0.3 percent to C$3.39 after swinging to a quarterly loss, missing expectations, due to higher R&D and consulting expenses. Net loss for the three months ended Oct. 31 was $5.2 million, or 8 cents a share, compared with a net income of $5.9 million, or 9 cents a share, in the year-earlier period. Revenue decreased to $24.6 million, compared with $36.5 million in the year-earlier period. An analyst had predicted breakeven per share on revenue of $32.9 million.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) slid 0.3 percent to 892.09 at 12 p.m. in Toronto. Africa Oil Corp. (CVE:AOI), the heaviest stock in the gauge, lost 1.1 percent to C$8.45. The 372-member measure, where energy and materials producers account for 84 percent of its weighting, had lost 26.8 this year before today.
In currency, the Canadian dollar wavered between gains and losses at almost the lowest level in three years amid bets it will weaken against its U.S. counterpart as the Federal Reserve prepares to trim stimulus. The loonie was little changed at C$1.0580 per U.S. dollar at 10:43 a.m. in Toronto. One loonie buys 94.52 U.S. cents.
In the U.S., shares advanced as investors monitored data to get a clue for the stimulus outlook before a two-day Federal Reserve meeting that begins tomorrow. The 30-member Dow Jones Industrial Average (INDEXDJX:.DJI) gained 0.8 percent at 11:22 a.m. in New York. The S&P 500 (INDEXSP:.INX) rose 0.7 percent, while the Nasdaq Composite (INDEXNASDAQ:.IXIC) edged up 0.7 percent. Most followed shares included American International Group Inc. (AIG), Exxon Mobil, LSI, Cirrus Logic, Sprint, Time Warner Cable, Twitter and USEC.
Reported by Proactive Investors 22 hours ago.
The resource-heavy benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 0.8 percent to 13,224.75 at 12:14 p.m. in Toronto. Nine out of ten share groups advanced as almost two stocks gained on every one share that declined.
Output at U.S. factories, mines and utilities rose 1.1 percent after a revised 0.1 percent gain in October that was previously reported as a decline, a report from the Federal Reserve showed in Washington. The index of industrial production rose to 101.3, exceeding for the first time its pre-recession peak in December 2007. In Europe, data today showed that euro zone businesses ended the year on a high, helped by a jump in new orders.
Fed officials meet tomorrow for two days, and most recent U.S. economic data suggest that the beginning of the end of the massive bond-buying program will come sooner rather than later.
The financials group, which accounts for 35.2 percent of the main measure, more than any other group, led advances with a 1.1 percent gain. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, added 1.6 percent to C$69.30. Toronto-Dominion Bank (TSE:TD), the second-largest, increased 1.3 percent to C$95.89.
Alaris Royalty Corp. (TSE:AD), which provides alternative financing to businesses, slumped 5.1 percent after analysts at Raymond James Financial Inc. downgraded the stock’s recommendation to "market perform" from "outperform."
The materials sub-index, which includes mining shares, rose 1 percent as copper futures headed for the longest rally in three years on falling global inventories. First Quantum Minerals Ltd. (TSE:FM), a copper miner, increased 0.6 percent to C$17.10.
Copper futures for delivery in March advanced 0.3 percent to $3.3215 a pound at 10:57 a.m. on the Comex in New York, heading for a seventh straight gain.
Cameco Corp. (TSE:CCO), the world's third-largest uranium producer, rose 1.4 percent to C$22.39. The Saskatoon-based company said jet boring in ore is underway at the Cigar Lake uranium project in northern Saskatchewan. It said it’s on track to begin ore production at Cigar Lake in the first quarter of 2014.
Turquoise Hill Resources Ltd. (TSE:TRQ), the Rio Tinto Group unit that produces copper in Mongolia, surrendered 0.6 percent to C$3.37. The Vancouver-based miner said its parent company had secured extended commitments from the banks that have agreed to finance the underground expansion of the Oyu Tolgoi mine. The extension—to March 31—gives Rio Tinto, which owns approximately 51 percent of Turquoise Hill and operates Oyu Tolgoi, more time to resolve a dispute over costs with the government of Mongolia.
Primero Mining Corp. (TSE:P), the operator of the San Dimas gold mine in Mexico, slumped 6 percent to C$4.91. The Vancouver-based company said it has agreed to buy Brigus Gold Corp. (TSE:BRD) in a share exchange deal it values at about C$220 million. Brigus shareholders will also get part of a share in a new company that will hold Brigus’ interests in certain projects in Saskatchewan and Mexico.
The energy sector, the main index's second most heavily weighted group, increased 0.3 percent as oil, Canada’s largest export, gained ahead of the Fed meeting. Suncor Energy Inc. (TSE:SU), the nation's largest energy company by market value, edged up 0.9 percent to C$36.13.
January crude oil added 0.7 percent to $97.23 a barrel on the New York Mercantile Exchange.
The information technology group advanced 0.9 percent. BlackBerry Ltd. (TSE:BB), the struggling smartphone maker, added 1.3 percent to C$6.51 as the company’s executive vice-president in charge of global sales and its head of mergers and acquisitions strategy expected to depart, according to sources. Separately, analysts at Sanford C. Bernstein raised their rating on the stock to "market perform" from "underperform."
Wi-LAN (TSE:WIN), which owns patents for technology used in mobile phones, tacked on 0.6 percent to C$3.35 after saying it has entered a patent agreement with Panasonic Corp. (OTCMKTS:PCRFY) under which Panasonic will transfer more than 900 patents and applications related to semiconductor device technologies to a Wi-LAN unit.
The health care share group spiked 1.2 percent. Valeant Pharmaceuticals International Inc. (TSE:VRX), Canada’s largest drug-maker, jumped 2.7 percent to C$116.15. The Montreal-based company agreed to buy medical-device company Solta Medical Inc. (NASDAQ:SLTM) for $2.92 a share, or $250 million.
Cangene Corp. (TSE:CNJ), a Canadian biopharmaceutical firm, fell 0.3 percent to C$3.39 after swinging to a quarterly loss, missing expectations, due to higher R&D and consulting expenses. Net loss for the three months ended Oct. 31 was $5.2 million, or 8 cents a share, compared with a net income of $5.9 million, or 9 cents a share, in the year-earlier period. Revenue decreased to $24.6 million, compared with $36.5 million in the year-earlier period. An analyst had predicted breakeven per share on revenue of $32.9 million.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) slid 0.3 percent to 892.09 at 12 p.m. in Toronto. Africa Oil Corp. (CVE:AOI), the heaviest stock in the gauge, lost 1.1 percent to C$8.45. The 372-member measure, where energy and materials producers account for 84 percent of its weighting, had lost 26.8 this year before today.
In currency, the Canadian dollar wavered between gains and losses at almost the lowest level in three years amid bets it will weaken against its U.S. counterpart as the Federal Reserve prepares to trim stimulus. The loonie was little changed at C$1.0580 per U.S. dollar at 10:43 a.m. in Toronto. One loonie buys 94.52 U.S. cents.
In the U.S., shares advanced as investors monitored data to get a clue for the stimulus outlook before a two-day Federal Reserve meeting that begins tomorrow. The 30-member Dow Jones Industrial Average (INDEXDJX:.DJI) gained 0.8 percent at 11:22 a.m. in New York. The S&P 500 (INDEXSP:.INX) rose 0.7 percent, while the Nasdaq Composite (INDEXNASDAQ:.IXIC) edged up 0.7 percent. Most followed shares included American International Group Inc. (AIG), Exxon Mobil, LSI, Cirrus Logic, Sprint, Time Warner Cable, Twitter and USEC.
Reported by Proactive Investors 22 hours ago.