TSX Ends Lower On Cautious Trade -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a four-day gain to end a tad lower Monday, tracking mostly rising global equity markets on the back of some recent encouraging economic reports from the U.S. Back from a long weekend, investors preferred to tread cautiously ahead of a slew of economic data and earnings reports due this week.

Concerns over the ongoing conflict in Ukraine also appear to be prompting investors to stay on the sidelines.

The S&P/TSX Composite Index closed Monday at 14,493.68, down 6.71 points or 0.05 percent. The index scaled an intraday high of 14,509.66 and a low of 14,465.30.

On Thursday, the index ended higher by 53.87 points or 0.37 percent to close at 14,500.39, after scaling an intraday high of 14,508.54, its best in almost six years.

Crude oil trended higher for a third straight session to end at a near seven-week high ahead of the weekly oil report from the Energy Information Administration, on the back of lingering concerns over the conflict in eastern Ukraine amid worries of a possible supply disruption from Russia.

The Energy Index shed 0.05 percent, with U.S. crude oil futures for May delivery, gaining $0.07 or 0.1 percent to close at $104.37 a barrel Monday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) dropped 0.15 percent, while Encana Corp. (ECA.TO) lost 0.93 percent. Husky Energy Inc. (HSE.TO) edged up 0.11 percent, Canadian Oil Sands Limited (COS.TO) added 0.88 percent, Crescent Point Energy Corp. (CPG.TO) dropped 0.38 percent, and Talisman Energy Inc. (TLM.TO) shed 1.83 percent.

Canadian Natural Resources Ltd. (CNQ.TO) dropped 0.58 percent, after announcing a new light oil discovery offshore Cote d'Ivoire in West Africa.

Gold ended at a more than two-week low on rising global equities markets driven by some upbeat earnings reports from the U.S. and a some encouraging economic data from the U.S. and China last week.

The Global Gold Index dropped 0.41 percent, with gold futures for June delivery, dropping $5.40 or 0.4 percent to close at $1,288.50 an ounce Monday on the Nymex.

Barrick Gold Corp. (ABX.TO) and Newmont Mining Corp. (NEM), the world's largest gold mining companies, were reportedly in advanced talks about a merger as they grapple with a sharp drop in the price of gold. The two companies had planned to announce a deal as early as Tuesday. Although talks broke down, it could possibly be revived, reports suggest.

The two companies have neighboring operations in Nevada, the source of about 60 percent of Barrick's production, and operations in proximity in both Peru and Australia. Shares of Barrick Gold Corporation dived 3.94 percent.

Osisko Mining Corp. (OSK.TO) slipped 3.38 percent, while Agnico Eagle Mines Limited (AEM.TO) plunged 3.87 percent and Yamana Gold Inc. (YRI.TO) dropped 2.71 percent.

On Wednesday, Osisko Mining Corporation, Yamana Gold Inc. and Agnico Eagle Mines Limited entered into an agreement by to which Yamana and Agnico Eagle will jointly acquire 100% of Osisko.

Among other gold stocks, Kinross Gold Corp. (K.TO) up 0.67 percent, Barrick Gold Corp. (ABX.TO) down 3.94 percent, and Goldcorp Inc. (G.TO) up 2.00 percent.

The Capped Materials Index dropped 0.44 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) gaining 1.48 percent.

The heavyweight Financial Index edged up 0.05 percent with the Toronto-Dominion Bank (TD.TO) up 0.04 percent, Royal Bank of Canada (RY.TO) up 0.16 percent, Bank of Montreal (BMO.TO) up 0.10 percent, and National Bank of Canada (NA.TO) down 0.07 percent.

The Diversified Metals & Mining Index slipped 0.34 percent, with Teck Resources Limited (TCK.B.TO) down 1.23 percent, Lundin Mining Corp. (LUN.TO) up 0.38 percent, and First Quantum Minerals Ltd. (FM.TO) down 0.19 percent.

The Information Technology Index gathered 0.65 percent, with BlackBerry Limited (BB.TO) up 0.38 percent.

The Capped Industrials Index added 0.42 percent, with Bombardier Inc. (BBD.B.TO) flat at $4.01 a share and Air Canada (AC.B) up 1.78 percent. Canadian National Railway Company (CNR.TO) added 0.85 percent, while Canadian Pacific Railway Limited (CP.TO) added 0.48 percent. Ballard Power Systems (BLD.TO) gained over 3.5 percent.

Athabasca Oil Corp (ATH.TO) dropped 0.24 percent. Last Thursday, the company exercised its option to divest its 40 percent interest in the Dover Commercial Project to Phoenix Energy Holdings Ltd for about C$1.23 billion in cash, net of closing adjustments.

TransCanda Corporation (TRP.TO) shares plunged 3.74 percent. The company has stated that it is extremely disappointed and frustrated at the delay with regard to permitting process delay for Keystone XL. The company has also announced that it will hold a teleconference and web cast on Friday to discuss its first quarter 2014 financial results.

In economic news from Canada, data on wholesale and retail sales for February will be out on Tuesday and Wednesday, respectively.

In economic news from the U.S., leading economic indicators showed continued improvement in the month of March, with the Conference Board's leading economic index rising by a more than expected 0.8 percent following a 0.5 percent increase in February. The consensus estimate calls for a 0.7 percent month-over-month increase in the index following a 0.5 percent increase in February.

Meanwhile, the Chicago Fed National Activity Index for March dropped to 0.20 from 0.53 recorded in February. Of the four categories of indicators, two were positive to the index while the remaining two moved lower from February. The three-month moving average improved with a neutral reading in March, as compared to the negative 0.14 in February.