TSX Ends Higher On Upbeat Data, Energy Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks moved up to end at a near six-year high on Monday, led by strong gains in the energy sector as crude prices continued to be impacted on fears of supply disruption fears amid the violence in Iraq. Investors also reacted positively to some upbeat economic data from the U.S. with both industrial production and homebuilder confidence rising more than expected.

Nonetheless, concerns over supply disruption eased somewhat after news reports said the oil producing areas in Iraq were largely secure from the onslaught of militants. Reports also indicated the U.S. could collaborate with Iran to help the Iraqi government bring the country under its control.

Data showing an unexpected rise in New York manufacturing activity, a rise in U.S. industrial production and improvement in home builder confidence, aided sentiment to a significant extent.

However, a downward revision to U.S. economic growth forecast for the year to 2 percent by the International Monetary Fund appears to have limited gains to an extent.

Shares from financial, energy and technology sections are among the prominent gainers.

The S&P/TSX Composite Index closed Monday at 15,040.43, up 38.82 points or 0.26 percent. The index scaled an intraday high of 15,075.70 and a low of 15,001.61, its highest level since June 19, 2008.

Crude oil ended flat with the escalating violence in Iraq and some upbeat economic data from the U.S.

The Energy Index gained 0.12, with U.S. crude oil futures for July delivery, the most actively traded contract, edging down $0.01 to close at $106.90 a barrel Monday on the Nymex.

Among energy stocks, Canadian Natural Resources Ltd. (CNQ.TO) dropped 0.60 percent, Talisman Energy Inc. (TLM.TO) added 0.69 percent, and Suncor Energy Inc.(SU.TO) added 0.86 percent.

The Financial Index gained 0.22 percent with Royal Bank of Canada (RY.TO) down 0.15 percent, Bank of Montreal (BMO.TO) ended flat at $76.73 a share, Toronto-Dominion Bank gained 0.43 percent, and the Canadian Imperial Bank of Commerce (CM.TO) was up 0.31 percent. Bank of Nova Scotia (BNS.TO) added 0.78 percent.

The Capped Healthcare Index gained 0.75 percent with Catamaran Corp. (CCT.TO) gaining 1.16 percent, Extendicare Inc. (EXE.TO) added 2.22 percent, and Valeant Pharmaceuticals International, Inc. (VRX.TO) surrendered 1.58 percent.

Meanwhile, Allergan Inc. (AGN) reiterated its belief that Valeant Pharmaceuticals business model is unsustainable, and the model relies on serial acquisitions and cost reductions, as opposed to top-line revenue growth and operational excellence. Several third parties have also publicly expressed similar views.

Acasti Pharma Inc. (APO.TO) slipped 3.67 after it announcing that Xavier Harland has resigned as the company's Chief Financial Officer, effective immediately.

The Global Gold Index dropped 0.92 percent, although gold futures for August delivery inched up $1.20 or 0.1 percent to close at $1,275.30 an ounce Monday on the Nymex.

Among gold stocks, B2Gold Corp. (BTO.TO) shed 1.76 percent, Yamana Gold Inc. (YRI.TO) dropped 1.33 percent, Barrick Gold Corp. (ABX.TO) slipped 0.38 percent, and Kinross Gold Corp. (K.TO) dropped 0.45 percent.

The Capped Materials Index gained 0.25 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 2.58 percent.

The Diversified Metals & Mining Index ended flat, with Lundin Mining Corp. (LUN.TO) up 0.53 percent, First Quantum Minerals Ltd. (FM.TO) up 0.14 percent, and Teck Resources Limited (TCK.B.TO) slipped 0.39 percent.

The Information Technology Index added 0.58 percent, with BlackBerry Limited (BB.TO) up 0.12 percent and Celestica Inc. (CLS.TO) up 0.92 percent.

The Capped Industrials Index added 0.51 percent, with Bombardier Inc. (BBD.B.TO) down 0.76 percent and Air Canada (AC.B) edged up 0.62 percent.

Chinook Energy Inc. (CKE.TO) gained 2.33 percent after announcing that its wholly-owned unit Storm Ventures International (BVI) Limited has entered into an agreement to sell its Tunisian assets for $127.7 million.

Precision Drilling Corp. (PD.TO) dropped 0.20 percent after indicating that it will sell certain assets from its trucking operations to Aveda Transportation and Energy Services Inc. (AVE.V.TO).

Sears Canada Inc. (SCC.TO) shares added 1.08 percent following an announcement that it has an agreement to develop its property at the North Hill Shopping Centre in Calgary.

Macro Enterprises Inc. (MCR.TO) dropped 4.04 percent, after announcing the appointment of Jeff Redmond as interim Chief Financial Officer effective July 1, 2014.

In economic news from the U.S., a report from the Federal Reserve of New York showed that manufacturing activity in New York region to have risen unexpectedly in June with the Empire State general business conditions index inching up to 19.3, from 19.0 in May. Economists expected the index to slip to 15 in June.

In a separate report, the Federal Reserve said industrial production in May increased by 0.6 percent following a revised 0.3 percent decrease in April. Economists expected production to climb by about 0.5 percent.

A report from the National Association of Home Builders showed homebuilder confidence to have improved more than expected in June. The NAHB/Wells Fargo Housing Market Index climbed to 49 in June from 45 in May. Economists expected the index to edge up to 47.

Meanwhile, the two-day Federal Reserve meeting kick starts on Tuesday, with the central bank also scheduled to release its updated forecasts apart from the post-meeting policy statement.

Investors will be looking ahead to the Commerce Department's housing starts report for May and the jobless claims report this week.

Additionally, the Labor Department's consumer prices report for May, the Commerce Department's quarterly current account report, the Conference Board's leading economic indicators index for May and announcements concerning the Treasury auctions of 2-year, 5-year and 7-year notes are also due this week.