TSX Ends Lower As Energy, Gold Stocks Weigh -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower on Monday, driven by losses in energy and gold mining sectors, despite strength in commodity prices with most global equity markets closing higher.

The market was under pressure right at the start of the new trading week, adding to Friday's sharp losses.

Markets in Europe turned in a mixed performance Monday. Eurozone finance ministers are set to hold a meeting in Brussels today, where the new list of reforms submitted by Greece is set to dominate the agenda. However, the prevailing opinion is that they are unlikely to reach a decision on approving the Greek proposals today.

Greek Prime Minister Alexis Tsipras last Friday sent a prepared list of reforms to Eurogroup Chairman, Dutch Finance Minister Jeroen Dijsselbloem in order to unlock aid funds from euro area lenders. The list of seven measures is said to include tax avoidance steps and scanning public documents.

Last month, Greece wriggled out of a tight situation with a temporary agreement with lenders for an extension to its bailout by four months. At that time, Greece agreed to complete a bailout review by April prior to getting any further financial aid.

Markets in the United States ended in positive territory, with investors cashing on an opportunity to pick up stocks at somewhat reduced levels following the sell-off since last Friday, which reflected concerns about the outlook for interest rates. However, buying interest was relatively subdued, due to a lack of U.S. economic data and ahead of next week's Federal Reserve meeting.

The benchmark S&P/TSX Composite Index closed Monday at 14,854.49, down 98.01 points or 0.66 percent. The index scaled an intraday high of 15,964.60 and a low of 14,854.49.

On Friday, the index closed down 150.61 points or 1.00 percent, at 14,952.50. The index scaled an intraday high of 15,145.28 and a low of 14,910.30.

Gold futures ended higher on its safe haven appeal with investors focused over Greece's continued financial troubles and its ability to fund itself in the near future. Eurozone finance ministers are meeting in Brussels later today to discuss the beleaguered country's new list of reform measures.

The Gold Index plummeted 6.40 percent, with gold for April delivery gained $2.20 or 0.2 percent to settle at $1,166.50 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Goldcorp (G.TO) dropped 2.46 percent, Barrick Gold Corp. (ABX.TO) dived 4.70 percent, and Kinross Gold Corp (K.TO) shed 3.81 percent.

Eldorado Gold Corp. (ELD.TO) dropped 3.94 percent, Yamana Gold Inc. (YRI.TO) fell 3.39 percent, B2Gold (BTO.TO) surrendered 3.08 percent, and IAMGOLD (IMG.TO) plunged 6.25 percent.

The Capped Materials Index dropped 1.55 percent on declining gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) shedding 0.47 percent and Agrium Inc. (AGU.TO) down 1.13 percent.

Franco-Nevada (FNV.TO) fell 2.30 percent, while Agnico Eagle Mines (AEM.TO) dived 3.57 percent. Silver Wheaton (SLW.TO) dropped 1.69 percent.

Crude oil ended higher after the dollar weakened against a basket of major currencies and on hopes of increasing demand with China's oil import rising in February.

The Energy Index fell 2.41 percent, although U.S. crude oil futures for April delivery, gained $0.39 or 0.8 percent to settle at $50.00 a barrel on the New York Mercantile Exchange Monday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) fell 6.01 percent, Suncor Energy Inc. (SU.TO) shed 2.60 percent, Canadian Natural Resources Limited (CNQ.TO) dived 2.16 percent, and Encana Corp. (ECA.TO) dipped 1.77 percent.

Crescent Point Energy Corp. (CPG.TO) dropped 2.94 percent, while Cenovus Energy Inc. (CVE.TO) slipped 0.59 percent.

The heavyweight Financial Index dipped 0.20 percent, with Bank of Nova Scotia (BNS.TO) down 0.14 percent, Bank of Montreal (BMO.TO) gained 0.16 percent, and Royal Bank of Canada (RY.TO) fell 0.25 percent.

National Bank of Canada (NA.TO) dipped 0.46 percent, while Canadian Imperial Bank of Commerce (CM.TO) shed 0.17 percent. Toronto-Dominion Bank (TD.TO) dropped 0.15 percent.

The Diversified Metals & Mining Index dropped 0.33 percent, as First Quantum Minerals Ltd. (FM.TO) gained 1.66 percent, Lundin Mining Corp. (LUN.TO) shed 0.39 percent, and Teck Resources (TCK-B.TO) surrendered 1.05 percent.

Sherritt International Corp. (S.TO) dropped 3.14 percent, HudBay Minerals Inc. (HBM.TO) shed 1.23 percent, and Finning International Inc. (FTT.TO) gained 2.04 percent.

The Health Care Index gained 1.15 percent, as Extendicare Inc. (EXE.TO) added 0.42 percent, Valeant Pharmaceuticals International, Inc. (VRX.TO) gathered 2.85 percent, and Catamaran Corp. (CCT.TO) surrendered 0.57 percent.

The Capped Industrials Index fell 0.21 percent, with Bombardier Inc. (BBD.B.TO) gaining 2.58 percent and Air Canada (AC.TO) adding 0.16 percent.

The Information Technology Index inched up 0.04 percent, with BlackBerry Limited (BB.TO) down 7.44 percent after the smartphone maker was downgraded to "Sell" from "Neutral" by Goldman Sachs.

Among other tech stocks, Sierra Wireless, Inc. (SW.TO) dropped 1.71 percent, Constellation Software Inc. (CSU.TO) added 1.03 percent, and Descartes Systems Group Inc. (DSG.TO) gained 3.35 percent.

The Capped Telecommunication Index fell 1.96 percent, with Rogers Communications Inc. (RCI.B.TO) dropping 1.69 percent, BCE down 1.01 percent and TELUS Corp. (T.TO) shed 2.97 percent.

NuVista Energy (NVA.TO) fell 6.75 percent, after reporting fourth quarter adjusted earnings of C$0.01 per share, compared to a loss of C$0.03 per share last year.

COM DEV International (CDV.TO) climbed 8.60 percent, after reporting a first quarter loss of C$0.15, compared to the profit of C$0.03 last year. The company also announced exploring strategic options for its exactEarth unit.

Concordia Healthcare (CXR.TO) soared 25.83 percent, after agreeing to acquire substantially all of the commercial assets of privately held Covis Pharma S.à.r.l and Covis Injectables, S.à.r.l for US$1.2 billion in cash.

Cargojet (CJT.TO) gained 4.65 percent. The company reported fourth quarter revenues of $57.1 million, an increase of 17.7 percent from the prior year. Cargojet also declared a cash dividend of $0.1491 per common voting share.

On the economic front, China's trade surplus rose to a record high in February as exports surged due to the effect of the timing of the Lunar New Year, figures from the customs office showed Sunday. The trade surplus came in at $60.6 billion in February, much more than the $6 billion expected by economists.

Japan's gross domestic product expanded just 1.5 percent on year in the fourth quarter of 2014, the Cabinet Office said in Monday's revised reading. That was well shy of forecasts for 2.2 percent, which would have been unchanged from the February 15 preliminary reading.

Eurozone investor confidence reached its highest level since August 2007, survey data from the think tank Sentix showed Monday. The investor confidence index for March rose to 18.6 from 12.4 in February. This was the highest score since August 2007.

Germany's exports declined at the fastest pace since August although a weaker euro is likely to boost shipments in months ahead. Exports dropped by a worse-than-expected 2.1 percent month-on-month in January, reversing December's revised 2.8 percent increase, data from Destatis revealed Monday. It was severe than a 1.5 percent fall forecast by economists.

Meanwhile, the Bank of France lowered its economic growth forecast for the first quarter even as business confidence in the manufacturing sector deteriorated, a survey report from the bank showed Monday. The central bank cut its first-quarter growth forecast for the French economy to 0.3 percent from 0.4 percent seen earlier. Preliminary data showed that the French economy grew 0.1 percent in the final three months of 2014.

The Organization for Economic Cooperation and Development said the leading index signaled stable growth momentum in the region and positive development in the euro area. The composite leading indicator increased to 100.4 in January from 100.3 in the previous month, the OECD said Monday.