TSX Ends A Tad Lower On Ukraine Crisis -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a second straight session on Monday, amid escalating tensions between Russia and the West with both the U.S. and the European Union announcing additional sanctions on Moscow for not adhering to the agreement reached two weeks back to end the crisis in eastern Ukraine.

Investors also remained cautious ahead of some key earnings reports and economic events, while also awaiting the outcome of the two-day Federal Open Market Committee meet in Washington beginning Tuesday.

While some merger & acquisition news from Europe aided sentiment to an extent, sluggish commodity prices and the imposition of additional sanctions by the U.S. government and the European Union pulled back the gains.

The Obama administration on Monday imposed another round of sanctions on Moscow, although many analysts see them as less severe than expected. The U.S. froze assets of seven Russian officials with travel bans, while thirteen more companies were brought into the gambit of trade restrictions.

The U.S. has also revealed a new policy that will deny Moscow access to high-technology items that could enhance Russia's military prowess. All existing licenses to this end will also be revoked.

Meanwhile, the European Union included 15 additional persons to the sanction list, targeting them with travel bans and a freeze of their assets within the EU.

The S&P/TSX Composite Index closed Monday at 14,530.91, down 2.66 points or 0.02 percent. The index scaled an intraday high of 14,557.31 and a low of 14,459.78.

On Friday, the index ended down modestly lower, albeit gaining about about 0.23 percent for the week.

Crude oil ended modestly higher supported by mounting tensions in Ukraine amid some additional sanctions on Moscow by the U.S. and the European Union, with concerns of a possible disruption of supplies from Russia.

The Energy Index gained 0.10 percent, with U.S. crude oil futures for June delivery, moving up $0.24 or 0.2 percent to close at $100.84 a barrel Monday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) gained 0.93 percent with its results due later today, while Encana Corp. (ECA.TO) added 0.28 percent. Husky Energy Inc. (HSE.TO) moved up 0.23 percent and Canadian Natural Resources Ltd. (CNQ.TO) gained 0.47 percent.

The Capped Healthcare Index dropped 0.42 percent with Valeant Pharmaceuticals International, Inc. (VRX.TO) down 0.12 percent and Catamaran Corp. (CCT.TO) down 0.54 percent.

Gold futures ended a tad lower ahead of the two-day Federal Open Market Committee meet beginning Tuesday, even as investors also mulled over the tensions between Russia and the West with the U.S. and the EU announcing additional sanctions against Moscow.

The Global Gold Index shed 2.14 percent, with gold futures for June delivery, dropping $1.80 or 0.1 percent to close at $1,299.00 an ounce Monday on the Nymex.

Newmont Mining Corp. terminated the merger talks with Barrick Gold Corp. (ABX.TO), which have been widely reported by the news media over the last week. According to several media reports, the two companies had planned to announce the deal as early as Tuesday.

Barrick Gold Corp. dropped 3.14 percent.

Among other gold stocks, Agnico Eagle Mines Limited (AEM.TO) dropped 0.59 percent, Yamana Gold Inc. (YRI.TO) surrendered 2.27 percent, Kinross Gold Corp. (K.TO) lost 3.04 percent, and B2Gold Corp. (BTO.TO) dropped 3.68 percent.

The Capped Materials Index surrendered 1.21 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.25 percent.

The Financial Index gained 0.13 percent with the Toronto-Dominion Bank (TD.TO) up 0.15 percent, Royal Bank of Canada (RY.TO) up 0.11 percent, and Bank of Montreal (BMO.TO) up 0.29 percent.

The Diversified Metals & Mining Index declined 1.62 percent, with Lundin Mining Corp. (LUN.TO) down 2.31 percent, First Quantum Minerals Ltd. (FM.TO) down 1.34 percent, and Teck Resources Limited (TCK.B.TO) down 2.26 percent.

The Information Technology Index dropped 0.84 percent, with BlackBerry Limited (BB.TO) up 2.98 percent.

Among other technology stocks, Constellation Software Inc. (CSU.TO) dived 3.42 percent and Celestica Inc. (CLS.TO) edged down 0.24 percent. Avigilon Corp. (AVO.TO) slumped 4.31 percent.

The Capped Industrials Index rose 0.16 percent, with Bombardier Inc. (BBD.B.TO) up 0.98 percent, and Air Canada (AC.B) down 2.12 percent.

In corporate news, Coastal Contacts Inc. (COA.TO) on Friday said it has received Competition Act clearance for the proposed statutory plan of arrangement under which Essilor International, S.A. will indirectly acquire all of the issued and outstanding common shares of Coastal.com for C$12.45 per share. The stock has not been traded yet this morning.

Precision Drilling Corp. (PD.TO) slipped 1.01 percent after reporting net earnings of $102 million or $0.35 per share in the first quarter, compared to net earnings of $93 million or $0.33 per share last year.

Qlt Inc. (QLT.TO) dropped 0.16 percent after reporting an operating loss of $6.6 million for the fourth quarter, compared to $10.1 million operating loss a year ago.

Contrans Group Inc. (CSS.T) gained 3.30 percent following its announcement to sell its waste-collection business to GFL Environmental Inc. for an undisclosed amount.

Hardwoods Distribution Inc. (HWD.TO) added 1.25 percent after indicating it has purchased hardwood lumber producer Hardwoods of Michigan Inc. for $15.4 million. Hardwoods expect the acquisition will result in an additional revenue of C$33 million a year.

In economic news, pending home sales saw a more than anticipated rise in March with the National Association of Realtors' pending home sales index surging up 3.4 percent to 97.4 in the month, after edging down by 0.5 percent to a revised 94.2 in February. Economists expected a much more modest increase of about 0.6 percent.

Meanwhile, Germany's economic growth is set to lose momentum in the second quarter after a strong start to the year, Bundesbank said in its monthly report on Monday. The central bank indicated weakness in industrial orders as compared to the strong growth in the first quarter. However, economic activity shows upward trend in the second quarter, the bank added. The first quarter GDP data is due on May 15.

Economic reports in focus for the week include the U.S. non-farm payrolls report for April, the Conference Board's consumer confidence index for April, advance estimate for first quarter GDP and the Commerce Department's personal income and spending report for March.

Investors also await results of the Institute for Supply Management's manufacturing index for April, the regional manufacturing survey by MNI Indicators, auto sales for April and the jobless claims report. Additionally, the final estimate of Markit's U.S. manufacturing survey for March will also be eyed.