TSX Ends Higher Led By Gold Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks moved up for a twelfth straight day to end at a three-year high on Thursday, driven by strength in gold and materials stocks, even as investors digested a slew of data from the U.S. Investor sentiments continued to ride high, with markets largely ignoring some weak manufacturing data out of China. This is the longest extended run for the main index in over two decades.

The main index was also helped with Quebecor's Videotron (QBR-B.TO) soaring 8.10 percent after revealing a spend of $233.3 million to acquire licenses for Quebec, Ontario, Alberta and British Columbia.

The U.S. Federal Reserve rattled markets a bit yesterday with the release of minutes from its January policy meeting. The minutes showed the Fed's determination to taper its stimulus measures despite worrisome economic data over the long, cold winter.

Chinese manufacturing sector contracted for a second straight month in February, with the activity indicator dropping to a seven-month low, as a renewed fall in new orders dragged production lower, suggesting that the economic recovery is losing momentum, a closely-watched survey showed Thursday.

Meanwhile, retail inflation in the U.S. remained in check in January, with new government statistics indicating a slight increase in consumer prices for the month.

The U.S. Labor Department said initial jobless claims fell modestly, as layoff activity moderated a bit last week. Manufacturing conditions in the Philadelphia region significantly worsened in January due to the severe winter weather, according to a Philadelphia Federal Reserve survey.

The S&P/TSX Composite Index closed Thursday at 14,210.37, up 90.64 points or 0.64 percent. The index scaled an intraday high of 14,222.60 and a low of 14,112.02.

Gold futures ended lower for a second straight session, easing from a 3-month high, with the dollar rising on some soft economic data out of China indicating a slowdown.

The Global Gold Index jumped 4.44 percent, with gold futures for April delivery, the most actively traded contract, shedding $3.50 or 0.3 percent to close at $1,316.90 an ounce Thursday on the Nymex. However, in extended electronic trade, the index gained $2.80 or 0.21 percent.

Among gold stocks, Barrick Gold Corp. (ABX.TO) surged 6.30 percent, Detour Gold Corp. (DGC.TO) jumped 7.85percent, and Kinross Gold Corp. (K.TO) soared 5.59 percent. Goldcorp Inc. (G.TO) climbed 4.10 percent, while Yamana Gold Inc. (YRI.TO) added 3.09 percent.

The Capped Materials Index jumped 2.95 percent, although Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.16 percent.

Crude oil snapped a two-day gain to end lower after an official Energy Information Administration weekly oil report showed inventories in the U.S. to have moved up, albeit less than expected last week.

The Energy Index shed 0.13 percent, with U.S. crude oil futures for April delivery, the most actively traded contract, shedding $0.09 or 0.1 percent to close at $102.75 a barrel Thursday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) added 64 percent, Talisman Energy Inc. (TLM.TO, TLM) dropped 0.93 percent, and Encana Corp. (ECA.TO, ECA) surrendered 1.99 percent. Cenovus Energy Inc. (CVE.TO) slipped 0.28 percent, while Suncor Energy Inc. (SU.TO) dropped 0.68 percent.

The heavyweight Financial Index added 0.38 percent with Royal Bank of Canada (RY.TO) up 0.57 percent and the Bank of Nova Scotia (BNS.TO) up 0.39 percent. Bank of Montreal (BMO.TO) added 0.24 percent, while Toronto-Dominion Bank (TD.TO) gained 0.65 percent.

The Diversified Metals & Mining Index edged up 0.16 percent, with Lundin Mining Corp. (LUN.TO) up 0.19 percent, and First Quantum Minerals (FM.TO) gaining 1.65 percent. Teck Resources Limited (TCK.B.TO) moved up 0.31 percent.

The Information Technology Index added 1.94 percent, after BlackBerry Limited (BB.TO) surged 4.10 percent.

The Capped Industrials Index added 0.59 percent, with Bombardier Inc. (BBD.B.TO) ending flat.

In corporate news, Osisko Mining Corp., subject of a C$2.88 billion ($2.6 billion) hostile offer from Goldcorp Inc., gained 3.22 percent after indicating to Bloomberg of a "clear" argument for remaining a stand-alone miner.

Tim Hortons (THI.TO) gained 1.80 percent after reporting slightly higher net earnings of $0.69 a share, compared to $0.65 a share in the same quarter a year ago. The coffee shop also announced a $440 million share repurchase program.

Loblaw Companies (L.TO) added 4.75 after reporting adjusted net earnings of C$0.65 per basic share for the quarter, which was better than estimated.

Finning International Inc.(FTT.TO) added 2.68 percent after posting a fourth-quarter profit of C$93 million or C$0.54 per basic share, compared to C$103 million or C$0.60 per basic share, last year, in line with estimates.

In economic news, a report from the U.S. Labor Department showed initial jobless claims fell by 3,000 to 336,000 for the week ended February 15. This followed an unrevised reading of 339,000 in the previous week. Economists expected claims at 335,000. Jobless claims measure the number of people filing for first-time unemployment benefits. It is considered a good gauge of recent layoff activity, providing a glimpse at the health of the labor market.

The Philadelphia Fed's manufacturing index dropped sharply to a reading of negative 6.3 in February from a 9.4 reading in January. Economists expected a positive reading of 8. The Philadelphia Fed Index questions manufacturers on general business conditions. Values greater than zero indicate economic growth, while values less than zero indicate contraction.

The Conference Board's Leading Economic Index for the U.S. increased 0.3 percent in January to 99.5, suggesting the economy did not lose much momentum despite severe winter weather across much of the nation. This follows no change in December, and a 0.9 percent increase in November.

The U.S. Labor Department revealed that consumer prices advanced 0.1 percent in January, following an increase of 0.2 percent in the previous month. Economists expected the a rise of 0.1 percent.

Chinese manufacturing sector contracted with the seasonally adjusted flash Markit/HSBC Purchasing Mangers' Index, which gauges manufacturing activity in factories and workshops, dropped to 48.3 in February from 49.5 in January -- the index declining for the fist time in six months. Economists expected the index to have remained unchanged at 49.5.

Elsewhere, eurozone private sector economy expanded for the eighth successive month in February, albeit at a slower pace as recovery remains fragile and uneven, a closely-watched survey revealed Thursday. Purchasing Managers' survey by Markit Economics showed eurozone private sector economy flash composite output index, which measures the performance of manufacturing and services, dropped to 52.7 in February from January's 31-month high of 52.9. Economists were looking for a score of 53.1.

Home building in England reached a six-year high last year, but completions declined, data from the Department for Communities and Local Government showed Thursday. Housing starts rose 23 percent annually to 122,590 in 2013, the highest since 2007. Housing completions totaled 109,370, down 5 percent from 2012.