TSX Ends Lower As Commodity Prices Weigh -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a third straight session on Friday, dragged down by energy stocks as crude oil prices continued to trend lower as concerns of a supply glut resurfaced, with the heavyweight financial and mining sectors also under pressure.

The main index pared some of the losses after news emerged of a deal between Athens and the eurozone countries to extend Greece's financial aid program. The finance ministers of the eurozone countries meeting in Brussels agreed to extend Greece's bailout funding program by four months after Athens promised to honor all its debts.

Greece will provide an initial list of reform measures by Monday, even as Finance Minister Yakis Varoufakis stressed the period of four months will also "rebuild new relations with Europe and the IMF."

European markets ended mixed due to continued concerns over the situation in Greece, with eurozone finance ministers meeting in Brussels scheduled for later in the day to discuss the Greek request for a loan extension. Germany had rejected Greece's request for extension yesterday, stating that the Greek government is attempting to receive a bridge financing, without meeting the requirements of the program.

Markets in the United States ended in positive territory after the Greek financial aid deal with eurozone. The lack of any major U.S. economic data kept some traders on the sidelines at the end of the trading week.

The benchmark S&P/TSX Composite Index closed Friday at 15,172.24, down 8.09 points or 0.05 percent. The index scaled an intraday high of 15,232.74 and a low of 15,124.30.

On Thursday, the index closed down 32.42 points or 0.21 percent, at 15,180.33. The index scaled an intraday high of 15,211.81 and a low of 15,099.91.

Crude oil lower for a third straight session on continued concerns of a supply glut, after data from the Energy Information Administration yesterday showed crude stockpiles in the U.S. to have surged more than expected last week to a record high.

U.S. crude oil inventories jumped 7.7 million barrels in the week ended February 13, while analysts expected an increase of 3.1 million barrels. The EIA report showed U.S. crude oil inventories at 425.6 million barrels end last week. Gasoline stocks increased by 0.5 million barrels last week, while analysts anticipated an increase of 0.4 million barrels.

The Energy Index dropped 0.66 percent with U.S. crude oil futures for March delivery, shedding $0.82 or 1.6 percent to settle at $50.34 a barrel on the New York Mercantile Exchange Friday.

Among energy stocks, Pacific Rubiales Energy Corp. (PRE.TO) slipped 1.44 percent, Canadian Oil Sands (COS.TO) shed 1.08 percent, Penn West Petroleum Ltd. (PWT.TO) fell 4.42 percent and Encana Corp. (ECA.TO) dropped 1.18 percent.

Canadian Natural Resources Limited (CNQ.TO) dipped 1.42 percent, while Crescent Point Energy (CPG.TO) added 0.75 percent. Cenovus Energy (CVE.TO) added 0.50 percent, while Talisman Energy (TLM.TO) added 0.83 percent.

Bonterra Energy (BNE.TO) shed 1.39 percent. The company has entered into a $172 million agreement to acquire oil and gas assets in Pembina Cardium.

Enerplus (ERF.TO) added 0.30 percent. The company reported fourth-quarter net income of C$0.74 per basic share, compared with C$0.15 per basic share last year. Analysts expected the company to earn C$0.21 per share.

Enbridge (ENB.TO) gained 0.29 percent. The company reported fourth quarter adjusted earnings of C$0.49 compared with C$0.44 per share a year ago. Analysts expected earnings of C$0.53 per share.

The Diversified Metals & Mining Index dropped 0.53 percent, as Sherritt International Corp. (S.TO) declined 0.82 percent, First Quantum Minerals Ltd. (FM.TO) added 0.43 percent, Teck Resources (TCK-B.TO) dropped 1.13 percent, and HudBay Minerals (HBM.TO) shed 1.14 percent.

First Quantum Minerals (FM.TO) gained 0.43 percent, after reporting a surge in fourth-quarter net earnings attributable to shareholders to $0.75 a share, from $0.22 a share last year.

Finning International Inc. (FTT.TO) jumped 4.73 percent, after having reported some positive earnings yesterday.

Gold futures ended lower after reports said the eurozone finance ministers have reached a broad consensus in the the Greek debt crisis although no official statement has been released as yet.

However, the Global Gold Index moved up 0.47 percent, with gold for April delivery dropping $2.70 or 0.2 percent to settle at $1,204.90 an ounce on the New York Mercantile Exchange Friday.

Goldcorp Inc. (G.TO) gained 0.94 percent, IAMGOLD Corp. (IMG.TO) added 1.74 percent, Barrick Gold Corp. (ABX.TO) moved up 0.87 percent, and Kinross Gold Corp. (K.TO) shed 0.87 percent.

Franco-Nevada Corp. (FNV.TO) added 0.64 percent, while Silver Wheaton Corp. (SLW.TO) fell 0.96 percent.

Eldorado Gold (ELD.TO) climbed 3.51 percent. The company reported a fourth quarter profit of $0.02 per share.

Centerra Gold (CG.TO) added 0.17 percent. The company reported a fourth quarter net loss of C$0.05 per share, compared to the profit of C$0.44 per share last year. The company's Board also authorized a quarterly dividend of C$0.04 per share.

The Capped Materials Index dipped 0.09 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) shedding 0.19 percent and Agrium Inc. (AGU.TO) gaining 0.31 percent.

The heavyweight Financial Index dropped 0.73 percent, as Bank of Montreal (BMO.TO) shed 0.75 percent, National Bank of Canada (NA.TO) fell 0.40 percent, Royal Bank of Canada (RY.TO) dived 1.58 percent, and Toronto-Dominion Bank (TD.TO) surrendered 0.90 percent.

Bank of Nova Scotia (BNS.TO) inched down 0.17 percent, while Canadian Imperial Bank of Commerce (CM.TO) dropped 1.59 percent.

The Capped Industrials Index inched up 0.07 percent, with Bombardier Inc. (BBD.B.TO) falling 2.04 percent and Air Canada (AC.TO) edging down 0.48 percent.

The Information Technology Index added 0.49 percent, as BlackBerry Limited (BB.TO) gained 0.69 percent, Constellation Software (CSU.TO) moved up 1.51 percent, and Descartes Systems Group Inc. (DSG.TO) dropped 1.29 percent.

The Healthcare Index jumped 1.83 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) gained 2.86 percent, Extendicare Inc. (EXE.TO) added 0.29 percent, and Catamaran Corp. (CCT.TO) gathered 2.13 percent.

The Capped Telecommunication Index added 0.55 percent, with BCE gaining 1.10 percent, TELUS Corp. (T.TO) moving up 1.14 percent, and Rogers Communications Inc. (RCI.B.TO) dropping 0.76 percent.

Nuvo Research (NRI.TO) jumped 5.25 percent. The company reported a fourth quarter loss of $0.56 per share, compared to the loss of $0.22 a year ago. Bombardier (BBD-A.TO) is down 2.69 percent. The company will issue C$750 million in equity.

Canadian Utilities (CU.TO) rose 0.73 percent. The company reported fourth quarter earnings of $151 million, compared to $117 million last year.

On the economic front, Canadian retail sales tumbled in the month of December, falling by 2.0 percent to C$42.08 billion, according to a report from Statistics Canada Friday morning. This was the steepest decline since April of 2010. Economists had been expecting a decrease of only 0.4 percent. Nine of eleven sectors showed declines, including gas station sales, which plunged by 7.4 percent. The 0.4 percent increase reported in November was unrevised.

In other economic news, eurozone business activity accelerated for the third straight month to hit a seven-month high in February on stronger demand, raising hopes of recovery gaining strength, flash data from Markit Economics showed Friday. New order growth also prompted firms to raise their staffing levels at the fastest pace since 2011. The composite output index rose to 53.5 in February from 52.6 in January. It was also above the expected score of 53.

Germany's private sector output grew at the strongest pace in seven months in February, flash data from Markit Economics showed Friday. The composite output index came in at 54.3 in February, up from 53.5 in January.

The French private sector expanded at the fastest rate in three-and-a-half years in February, flash data from Markit Economics showed Friday. The composite output index rose to 52.2 in February from 49.3 in January, more than the 49.8 reading expected by economists. This marked a forty-two month high.

Germany's producer prices in January declined at the fastest pace since early 2010, exceeding economists' prediction, figures from Destatis showed Friday. The prouder price index dropped 2.2 percent year-on-year in January, following a 1.7 percent fall in the previous month. Economists had forecast a 2.0 percent decline for the month.

The U.K. budget surplus hit a seven-year high in January on rising personal income tax, signaling that the government is set to achieve the target before the general election in May.

Meanwhile, retail sales declined slightly more-than-expected in January, marking the first fall in four months on weak food and clothing sales.

Net borrowing excluding public sector banks totaled -GBP 8.8 billion in January, an increase of 34.9 percent from last year, the Office for National Statistics said Friday. Nonetheless, the surplus was slightly below the GBP 9 billion predicted by economists.

Another report from the ONS showed that retail sales fell for the first time in four months in January. Sales including automotive fuel were down 0.3 percent from the previous month. Economists had forecast sales to drop 0.2 percent after a 0.2 percent rise in December.