TSX Ends Lower On Sluggish Commodity Prices -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a two-day gain to end lower Wednesday amid sluggish commodity prices and profit taking, with little market moving economic indicators for cue.

The decline was led by mining, consumer discretionary, industrial, materials and gold stocks, with energy and healthcare stocks also falling.

Investors continued to monitor developments in Ukraine and the Middle East. While Ukraine still remains tense despite Russian President Vladimir Putin and Ukrainian President Petro Poroshenko meeting in Belarus, the situation in Gaza is calmer as the ceasefire between Israel and the Palestinians took effect this morning.

Bank stocks fared better with support from a better-than-expected earnings report from National Bank of Canada.

The S&P/TSX Composite Index closed Wednesday at 15,602.65, down 16.56 points or 0.11 percent, after having scaled an an all-time high closing yesterday. The index scaled a intraday high of 15,624.51 and a low of 15,559.82.

On Tuesday, the index gained 20.47 points or 0.13 percent to end at an all-time high of 15,619.21.

Crude oil ended a tad higher after a weekly official oil report from the U.S. Energy Information Administration showed crude stockpiles in the U.S. to have dropped more than expected last week.

The Energy Index shed 0.21 percent, with U.S. crude oil futures for September inching up $0.02 to close at $93.88 a barrel Wednesday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) gained 0.21 percent, Enbridge Inc. (ENB.TO) added 0.55 percent, Suncor Energy Inc. (SU.TO) edged up 0.07 percent, Encana Corp. (ECA.TO) moved up 1.14 percent, and Canadian Natural Resources Limited (CNQ.TO) dropped 0.85 percent.

Talisman Energy (TLM.TO) plunged 5.05 percent on the back of reports that the deal with Spanish energy company Repsol has stalled.

The Financial Index gained 0.36 percent, with National Bank of Canada (NA.TO) jumping 3.06 percent after reporting a third quarter profit of C$423 million, up from the prior year's C$387 million. Earnings per share were C$1.24, up 7% from C$1.16 in the same quarter of 2013.

Among other major banks, Royal Bank of Canada (RY.TO) gained 0.37 percent, Bank of Nova Scotia (BNS.TO) declined 0.14 percent, and Bank of Montreal (BMO.TO) added 1.19 percent.

Toronto-Dominion Bank (TD.TO) gained 0.42 percent, while Canadian Imperial Bank Of Commerce (CM.TO) added 0.72 percent.

Gold futures ended a tad lower with little economic cues for direction, as investors opted for the riskier equity assets after the S&P 500 posted its first-ever finish above the 2,000 mark yesterday.

Global Gold Index shed 1.03 percent, with gold for December delivery dropping $1.80 or 0.1 percent to close at $1,283.40 an ounce on the New York Mercantile Exchange Wednesday.

Among gold stocks, B2Gold Corp. (BTO.TO) slipped 0.73 percent, Yamana Gold Inc. (YRI.TO) shed 1.64 percent, Eldorado Gold Corp. (ELD.TO) surrendered 1.34 percent, and Kinross Gold Corp. (K.TO) dipped 1.39 percent.

Barrick Gold Corp. (ABX.TO) dropped 1.45 percent, after reports emerged that the company is likely disband its entire corporate development team with a view to trim costs.

The Capped Materials Index surrendered 1.03 percent mostly on gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) shedding 0.70 percent.

The Diversified Metals & Mining Index dropped 0.80 percent, with First Quantum Minerals Ltd. (FM.TO) down 1.26 percent, Lundin Mining Corp. (LUN.TO) dropped 0.82 percent, Sherritt International Corp. (S.TO) down 0.23 percent, and Teck Resources Limited (TCK.B.TO) fell 1.03 percent.

The Capped Industrials Index dipped 0.27 percent, with Air Canada (AC.B.TO) sliding 0.58 percent.

The Capped Telecommunications Index gained 0.22 percent, with Rogers Communications Inc. (RCI.B.TO) adding 0.84 percent and BCE Inc. (BCE.TO) inching up 0.08 percent.

The Information Technology Index added 0.12 percent, with BlackBerry Limited (BB.TO) gathering 1.73 percent.

The Healthcare Index dived 0.78 percent, with Valeant Pharmaceuticals International Inc. (VRX.TO) shedding 1.19 percent.

The Consumer Discretionary Index dropped 0.54 percent, even as the merger deal between Tim Hortons Inc. (THI.TO) and Burger King Worldwide Inc. (BKW) take the center spot. Tim Hortons Inc. (THI.TO) dropped 2.58 percent on profit taking after two successive days of strong gains.

Dollarama Inc. (DOL.TO) slipped 1.00 percent and Linamar Corp. (LNR.TO) dropped 0.56 percent.

Cominar Real Estate Investment Trust (CUF.UN.TO) fell 1.79 percent, after stating it will buy 15 real estate properties in Quebec and Ontario from Ivanhoe Cambridge Inc, for C$1.53 billion.

Cameco Corp. (CCO.TO) shares dropped 3.51 percent, after the company responding to a strike notice from the United Steelworkers, initiated a shutdown of McArthur River mine and Key Lake mill operations, and cease production at these sites.

In economic news from the eurozone, the leading economic indicators index rebounded in July, gaining 0.3 percent month-over-month, following the 0.1 percent drop in June. At the Jackson Hole Symposium last Friday, European Central Bank President Mario Draghi said the ECB might come out with more stimulus if inflation dropped further.

China's consumer sentiment dropped in August, results of a survey by MNI and Westpac showed Wednesday. The Westpac-MNI consumer sentiment index fell to 113.3 in August from 114.8 in July. The index was at 112.6 June.