TSX Ends Higher On Mixed Data, Loblaw Deal - Canadian Commentary

(RTTNews) - Canadian stocks ended higher Monday, on some mixed global macroeconomic data and a multi-billion dollar deal by Loblaw that helped Shoppers Drug shares jump sharply, even as commodities moving moderately higher.

Loblaw Companies Limited (L.TO) shares jumped 5.43 percent after announcing that it would acquire Shoppers Drug Mart Corp. (SC.TO) for C$12.4 billion. The deal includes C$33.18 per share in cash plus 0.5965 Loblaw common shares per each Shoppers Drug common share, on a fully pro rated basis. Shares of Shoppers Drug jumped 24.21 percent to C$60.12.

China's economic growth slowed in the second quarter amid weaker industrial production and investment growth, the National Bureau of Statistics said Monday. China's GDP rose 7.5 percent year-on-year in the second quarter, in line with expectations. This was slower than the 7.7 percent growth recorded in the first three months. In the first half of the year, GDP rose 7.6 percent compared with the same period last year.

The S&P/TSX Composite Index closed Friday at 12,528.35, up 66.18 points or 0.53 percent. The index touched an intraday high of 12,569.93 and a low of 12,462.17.

The Capped Consumer Staples Index jumped 6.98 percent following the Loblaw-Shoppers Drug Mart deal.

The Global Gold Index gained 0.36 percent, with gold futures for August delivery gaining $5.90 or 0.5 percent to close at $1,283.50 an ounce Monday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) added 0.80 percent, while Goldcorp Inc. (G.TO) dropped 0.45 percent. IAMGOLD Corp. (IMG.TO) added 0.89 percent, while Barrick Gold Corp. (ABX.TO) gained 1.29 percent. Kinross Gold Corp. (K.TO) slipped 0.79 percent.

Alamos Gold Inc. (AGI.TO) gained 4.25 percent after indicating it would acquire Esperanza Resources Corp. (EPZ.V) by way of a court-approved plan of arrangement for C$0.85 in cash for each common share of Esperanza. Shares of Esperanza slipped 2.22 percent.

The Capped Materials Index added 0.50 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) up 0.41 percent.

The Diversified Metals & Mining Index dropped 0.16 percent, with First Quantum Minerals Ltd. (FM.TO) down 2.03 percent and Teck Resources Limited (TCK.B.TO) up 1.53 percent. Lundin Mining Corp. (LUN.TO) dropped 1.02 percent, while Osisko Mining Corp. (OSK.TO) added 2.05 percent.

The Energy Index dipped 0.03 percent, although U.S. crude oil futures for August delivery gained $0.37 or 0.3 percent to close at $106.32 a barrel Monday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) lost 0.43 percent, while Enbridge Inc. (ENB.TO) slipped 0.04 percent. Talisman Energy Inc. (TLM.TO) added 0.76 percent, while Encana Corp. (ECA.TO) gathered 0.28 percent. Canadian Natural Resources Limited (CNQ.TO) surrendered 0.90 percent.

The Financial Index ended higher at 0.48 percent with Manulife Financial Corporation (MFC.TO) up 0.33 percent and Bank of Montreal (BMO.TO) up 0.41 percent. Royal Bank of Canada (RY.TO) moved up 0.74 percent, while Toronto-Dominion Bank added 0.59 percent. Bank of Nova Scotia (BNS.TO) edged up 0.26 percent.

The Information Technology Index lost 0.50 percent, although BlackBerry (BB.TO) gathering 1.88 percent.

The Capped Industrials Index added 0.37 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) gaining 1.02 percent.

In the oil patch, Twin Butte Energy (TBE.TO) plummeted 19.17 percent after providing some disappointing operational update. Average production for the second quarter 2013 is estimated to between 16,500 and 16,700 boe per day, falling slightly short of internal expectations of 17,200 boe per day or a 3 percent variance.

Meanwhile, Colossus Minerals Inc. (CSI.TO) dived 50 percent after providing a development update for its 75 percent owned Serra Pelada gold-platinum-palladium Mine.

In economic news, the U.S. Commerce Department said retail sales increased by 0.4 percent in June compared to a downwardly revised 0.5 percent increase in May. Economists had been expecting retail sales to jump by 0.8 percent compared to the 0.6 percent growth originally reported for the previous month. Excluding a notable increase in auto sales, retail sales came in unchanged in June versus economist estimates for a 0.5 percent increase.

Meanwhile, the Federal Reserve Bank of New York said its general business conditions index rose to 9.5 in July from 7.8 in June, with a positive reading indicating an increase in regional manufacturing activity. The increase surprised economists, who had been expecting the index to drop to 5.0.

Business inventories in the U.S. unexpectedly increased in May, a report from the Commerce Department showed Monday. Business inventories inched up by 0.1 percent in May following a downwardly revised 0.2 percent increase in April. Economists expected inventories to come in unchanged compared to the 0.3 percent increase originally reported for the previous month. The increase was attributed primarily to a 0.6 percent increase in retail inventories.

From the eurozone, the number of employees in the German manufacturing sector increased modestly in May, preliminary data released by the Federal Statistical Office showed. The number of persons employed in manufacturing units with 50 or more employees, increased 0.6 percent on an annual basis to 5.2 million in May.

Chinese industrial production was up 8.9 percent on year in June, but short of the 9.1 percent forecast and down from 9.2 percent in May. Meanwhile, retail sales in China jumped an annual 13.3 percent, which is ahead of the expectations for a 12.9 percent increase.