TSX Ends Higher On Gold, Mining Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a third straight session on Monday, led mainly by mining stocks with bullion prices forging ahead, although somewhat pegged back a little by the sluggishness in the financial and energy sectors. The uptick was also supported by some upbeat domestic data with wholesale sales in August rising more than expected.

Data from Statistics Canada showing a 0.2 percent increase in Canadian wholesale sales in August, against a revised 0.2 percent decline in July, is aiding sentiment a bit. Analysts anticipated a decline of 0.3 percent in August.

Investors largely ignored the eurozone economic woes with most European markets ending sharply lower.

Nonetheless, the main index was quite sluggish in the morning, with investors reluctant to snap up equities tracking the declining U.S. equity markets, amid global economic jitters. Investors also look ahead to China's industrial production and GDP data, due tomorrow.

A disappointing earnings report from U.S. technology giant IBM also did little to keep investors away.

The benchmark S&P/TSX Composite Index closed Monday at 14,337.77, up 110.99 points or 0.77 percent. The index scaled a intraday high of 14,354.77 and a low of 14,180.10.

On Friday, the index closed up 174.71 points or 1.24 percent at 14,227.68, after scaling a intraday high of 14,297.17 and a low of 13,142.04.

The Healthcare index jumped 1.81 percent, with Valeant Pharmaceuticals Inc (VRX.TO) gaining 3.91 percent after reporting a third quarter profit of $2.11 per share, compared to $1.43 per share in the comparable quarter last year.

Catamaran Corporation (CCT.TO) added 0.93 percent, while Extendicare Inc. (EXE.TO) moved up 0.50 percent.

Gold futures ended higher with investors seeking the safe haven of the precious metal amid worries over the eurozone economy, with added speculation the U.S. Federal Reserve may not hike rates soon.

The Global Gold Index gained 2.49 percent, with gold for December delivery adding 5.70 or 0.5 percent to settle at $1,244.70 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Kinross Gold Corp. (K.TO) added 1.22 percent, Yamana Gold Inc. (YRI.TO) gained 3.21 percent, and Eldorado Gold Corp. (ELD.TO) moved up 2.16 percent.

Agnico Eagle Mines (AEM.TO) rose 5.81 percent, Franco-Nevada Corporation (FNV.TO) gained 3.73 percent, Barrick Gold Corporation (ABX.TO) added 2.05 percent, Goldcorp Inc. (G.TO) moved up 1.86 percent, and Silver Wheaton Corp. (SLW.TO) advanced 2.59 percent.

The Capped Materials Index jumped 1.97 percent mostly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) gaining 1.86 percent.

Crude oil ended lower ahead of the weekly inventory data following some soft demand amid speculation of excess supply globally.

The Energy Index gained 0.40 percent, with U.S. crude oil futures for December delivery shedding $0.15 or 0.2 percent to close at $81.91 a barrel on the Nymex Monday.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) dropped 1.01 percent, Talisman Energy Inc. (TLM.TO) gained 2.17 percent, and Bankers Petroleum Ltd. (BNK.TO) fell 1.31 percent.

Suncor Energy Inc. (SU.TO) gained 0.98 percent, Enbridge Inc. (ENB.TO) added 1.26 percent, and Encana Corp. (ECA.TO) moved up 0.48 percent.

The Financial Index moved up 0.25 percent, with Toronto-Dominion Bank (TD.TO) gaining 0.37 percent, Canadian Imperial Bank of Commerce (CM.TO) added 0.64 percent, Bank of Nova Scotia (BNS.TO) edged down 0.06 percent, Bank of Montreal (BMO.TO) gathered 0.86 percent, and National Bank of Canada (NA.TO) edged up 0.20 percent.

Royal Bank of Canada (RY.TO) gained 0.48 percent, while Manulife Financial Corp. (MFC.TO) slipped 0.20 percent.

The Diversified Metals & Mining Index moved up 0.25 percent, as First Quantum Minerals Ltd. (FM.TO) gained 2.07 percent, Lundin Mining Corporation (LUN.TO) slipped 0.20 percent, and Teck Resources Limited (TCK.B.TO) dropped 0.74 percent.

The Capped Industrials Index added 0.24 percent, with Bombardier Inc. (BBD.B.TO) gaining 1.68 percent, Air Canada (AC.B.TO) moving up 5.92 percent, and Canadian National Railway (CNR.TO) was up 0.53 percent.

Canadian Pacific Railway Limited (CP.TO) dropped 1.48 percent after having ended its exploratory talks with CSX Corp. (CSX) about a possible business combination that would improve customer service, promote competition and alleviate congestion in North America.

The Information Technology Index jumped 1.49 percent, with smartphone maker BlackBerry Limited (BB.TO) surging 8.69 percent.

CGI Group Inc. (GIB.A.TO) dropped 2.58 percent and Descartes Systems Group Inc. (DSG.TO) up 0.67 percent.

The Telecom Index added 1.62 percent with Rogers Communications Inc. (RCI.B.TO) gaining 3.29 percent, BCE Inc. (BCE.TO) up 1.18 percent, and TELUS Corp. (T.TO) up 0.68 percent.

The Consumer Staples Index gained 0.95 percent, with Metro Inc. (MRU.TO) adding 1.91 percent and Maple Leaf Foods Inc. (MFI.TO) up 2.39 percent.

Primary Energy Recycling Corp. (PRI.TO) shares soared 24.04 percent after the company said a newly-formed company owned by a consortium led by Fortistar LLC, will acquire all of the outstanding common shares of Primary Energy for a cash price of US$5.40 per share.

In economic news from eurozone, the eurozone current account surplus declined in August with surplus on trade in services declining notably, data from the European Central Bank showed Monday. The current account surplus dropped to a seasonally adjusted EUR 18.9 billion in August from EUR 21.6 billion in July.

Meanwhile, Germany's producer prices declined at a faster rate as expected in September, data from Destatis showed Monday. Producer prices fell 1 percent year-over-year in September following the 0.8 percent decrease in August, in line with the consensus estimate.

The Bundesbank in a downbeat view of the German economy, a monthly report from the central bank said the economic outlook should be either at the same level of the second quarter or slightly better than the prior quarter. The economy had contracted 0.2 percent in the second quarter.

Elsewhere in Europe, U.K. gross mortgage lending decreased slightly in August from last month, data from the Council of Mortgage Lenders showed Monday. Gross mortgage lending totaled GBP 17.8 billion, down 1 percent from August, but grew 10 percent from last September. In the third quarter, gross mortgage lending was estimated at GBP 55.5 billion, which represents an 8 percent increase from the second quarter.

No major economic data is due for release in the U.S. today. However, traders look ahead to data on existing and new homes sales for September, the house price index for August, weekly jobless claims and the flash estimate of Markit's U.S. manufacturing survey for October, all due during the course of the week.