TSX Ends Higher On Material, Gold Stocks - Canadian Commentary

(RTTNews) - Canadian stocks ended higher Monday, led by mining, materials and gold stocks with little or no economic data for direction, even as investors await cues from some significant macroeconomic data due later in the week. Nonetheless, BlackBerry shares also helped prop up the index after indicating plans for strategic alternatives.

Investor sentiments also improved after some soft gross domestic product numbers from Japan gave hopes of continued stimulus program. Investors also digested some upbeat industrial data from China last week, showing signs the economy is on the recovery path.

In economic news, Japan's gross domestic product for the second quarter fell short of expectations, fueling hopes of continued monetary stimulus support for the near future. Japan's economy grew 0.6 percent in the second quarter, while economists anticipated a 0.9 percent growth, according to preliminary data. Gross domestic product increased 2.6 percent on year for the April-June quarter, even as economists expected an increase of 3.6 percent.

The S&P/TSX Composite Index closed Monday at 12,594.27, up 52.14 points or 0.42 percent. The index touched an intraday high of 12,594.27 and a low of 12,542.21.

The Information Technology Index gathered 2.22 percent, with BlackBerry Limited (BB.TO) surging 10.75 percent, after the smartphone maker indicated seeking strategic alternatives for the company.

The Capped Materials Index climbed 4.23 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) up 3.31 percent. Crop nutrients maker Agrium Inc. (AGU.TO) gained 1.84 percent.

The Global Gold Index surged 5.35 percent, with gold futures for December delivery jumping $22.00 or 1.7 percent to close at $1,334.20 an ounce Monday on the Nymex.

Among gold stocks, Barrick Gold Corp. (ABX.TO) gathered 4.11 percent, while Yamana Gold Inc. (YRI.TO) surged 7.11 percent. Kinross Gold Corp. (K.TO) jumped 6.27 percent, IAMGOLD Corp. (IMG.TO) jumped 5.77 percent, and Goldcorp Inc. (G.TO) added 5.79 percent.

The Diversified Metals & Mining Index gained 2.53 percent, with First Quantum Minerals Ltd. (FM.TO) surging 4.63 percent. Osisko Mining Corp. (OSK.TO) jumped 10.86 percent, Teck Resources Limited (TCK.B.TO) gained 3.11 percent, and Lundin Mining Corp. (LUN.TO) gathered 2.05 percent.

The Energy Index slipped 0.62 percent, although U.S. crude oil futures for September delivery edged up $0.14 to close at $106.11 a barrel Monday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) slipped 2.11 percent, while Talisman Energy (TLM.TO) dropped 1.12 percent. Encana Corp. (ECA.TO) surrendered 0.17 percent, while Suncor Energy Inc. (SU.TO) slipped 0.24 percent.

The Financial Index dropped 0.23 percent with Bank of Montreal (BMO.TO) down 0.36 percent, Royal Bank of Canada (RY.TO) lost 0.58 percent, and Toronto-Dominion Bank (TD.TO) shed 0.29 percent. Manulife Financial Corp. (MFC.TO) slid 0.68 percent.

The Capped Industrials Index dipped 0.07 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) gaining 0.83 percent.

Crew Energy Inc. (CR.TO) gained 2.86 percent after reporting second-quarter net income of C$2.01 million or C$0.02 per share, down from C$24.11 million or C$0.20 per share, last year. Funds from operations were C$48.09 million or C$0.40 per share, compared to C$52.03 million or C$0.43 per share, prior year. Analysts expected breakeven per share for the quarter.

Atrium Innovations Inc. (ATB.TO) gained 5.57 percent after reporting second-quarter net income attributable to shareholders of $13.2 million, compared to last year's $12.2 million, with earnings per share improving to $0.42 from $0.36 in the prior year quarter. Adjusted earnings per share for the quarter was $0.45, up from $0.37 last year.

In economic news from the eurozone, employment in the German manufacturing sector increased slightly from last year in June, preliminary data released by the Federal Statistical Office showed. The number of persons employed in goods producing units, with fifty or more staff, grew 0.5 percent on an annual basis to around 5.2 million in June.

Switzerland's retail sales turnover increased for the third consecutive month in June, provisional results from the Federal Statistical Office showed. Real turnover grew 2.3 percent from a year ago, following 1.5 percent rise in the month of May. Similarly, excluding fuel sales, overall turnover climbed at a faster pace of 2 percent after increasing 1.6 percent in May.