TSX Ends Higher On Mixed Data; Still Below Record Highs -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a fourth straight session on Monday, on some soft economic data with the Canadian economy recording a disappointing growth in April, even as commodity prices dropped. Investors also weighed some sluggish data from the U.S. and Europe, with the index driven by rising tech, mining, materials and energy stocks.

Canada's economy grew only 0.1 percent in April, renewing concerns over the country's economic outlook, official data showed on Monday. The economy was expected to grow by 0.2 percent for the month.

In other economic news, a National Association of Realtors report on Monday showed pending home sales in the U.S. rose much more than anticipated in May. Meanwhile, Chicago business activity expanded at a slower than expected pace in June, a report from MNI Indicators showed.

Elsewhere, some disappointing German retail sales data raised expectations of further monetary easing from the European Central Bank, putting a floor under gold prices.

Eurozone inflation remained unchanged at a very low level in June, which may prompt the central bank to undertake more actions to calm fears of deflation and kick start the flattening recovery.

The S&P/TSX Composite Index closed Monday at 15,145.72, up 51.47 points or 0.34 percent. The index scaled an intraday high of 15,145.72 and a low of 15,060.83.

Last week, the index very nearly breached its all-time intraday high of 15,154.77, recorded on June 6, 2008.

The Energy Index gained 0.42 percent, although U.S. crude oil futures for August delivery, the most actively traded contract, dropped $0.37 or 0.3 percent to close at $105.37 a barrel Monday on the Nymex.

Among energy stocks, Canadian Natural Resources Ltd. (CNQ.TO) moved up 0.37 percent, Talisman Energy Inc. (TLM.TO) edged up 0.18 percent, Suncor Energy Inc.(SU.TO) dropped 0.24 percent, and Cenovus Energy Inc. (CVE.TO) added 0.52 percent.

Encana Corp. (ECA.TO) moved up 0.28 percent after having reached an agreement with Jupiter Resources last week to sell its Bighorn assets for about $1.8 billion or C$2.0 billion.

The Financial Index added 0.11 percent with Toronto-Dominion Bank up 0.20 percent, National Bank of Canada (NA.TO) down 0.13 percent, Bank of Nova Scotia (BNS.TO) down 0.20 percent, and Royal Bank of Canada (RY.TO) added 0.33 percent.

The Capped Healthcare Index dropped 0.89 percent with Valeant Pharmaceuticals International, Inc. (VRX.TO) shedding 2.30 percent and Catamaran Corp. (CCT.TO) edging down 0.04 percent

The Global Gold Index added 1.86 percent, with gold futures for August delivery gaining $2.00 or 0.2 percent to close at $1,322.00 an ounce Monday on the Nymex.

Among gold stocks, Eldorado Gold Corp. (ELD.TO) gained 0.99 percent, B2Gold Corp. (BTO.TO) up 2.30 percent, Yamana Gold Inc. (YRI.TO) added 2.21 percent, Kinross Gold Corp. (K.TO) gained3.03 percent, and Barrick Gold Corp. (ABX.TO) gathered 1.66 percent.

The Capped Materials Index gained 1.37 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) moving up 0.30 percent.

The Diversified Metals & Mining Index gained 1.29 percent, with Lundin Mining Corp. (LUN.TO) up 0.69 percent, Teck Resources Limited (TCK.B.TO) gained 2.09 percent, and First Quantum Minerals Ltd. (FM.TO) gained 1.33 percent.

The Information Technology Index gained 2.03 percent, with BlackBerry Limited (BB.TO) jumping 4.59 percent.

The Capped Industrials Index moved up 0.59 percent, with Bombardier Inc. (BBD.B.TO) edging up 0.27 percent, while Air Canada (ACB.B.TO) moved up 0.11 percent.

In economic news from the U.S., a National Association of Realtors report on Monday showed its pending home sales index jumped 6.1 percent to 103.9 in May from 97.9 in April, while economists expected the index to rise by about 1.0 percent. A pending home sale is one in which a contract was signed but not yet closed, which normally takes four to six weeks.

Meanwhile, MNI said its Chicago business barometer fell to 62.6 in June from 65.5 in May. While a reading above 50 indicates continued growth, economists had expected the barometer to edge to down to 64.0. Despite the monthly decrease, the Chicago business barometer indicated the fourteenth consecutive month of growth and remained above 60 for the third month in a row.

German retail sales fell unexpectedly in May, data from the country's statistics office showed Monday. Sales on the month decreased by 0.6% in May in adjusted terms.

Eurozone inflation remained stable at 0.5 percent in June, flash estimate from Eurostat showed Monday. It was forecast to rise slightly to 0.6 percent.