TSX Ends Lower On Ukraine -- Canadian Commentary

(RTTNews) - Canadian stocks ended slightly lower Friday, on some disappointing employment data even as energy shares dropped with oil prices falling. Investors digested some encouraging global economic data, although concerns over developments in eastern Ukraine continued to linger.

Russian separatists in Ukraine indicated they will go ahead with a referendum during the week end on sovereignty, despite Moscow advising to the contrary.

Some positive comments made by the U.S. Federal Reserve Chair Janet Yellen yesterday before the Congress on the U.S. economy also helped lift investor sentiments.

Chinese inflation slowed more-than-expected to an 18-month low in April, while the negative trend in producer prices persisted for the 26th straight month, providing the government scope to introduce more stimulus to achieve its 7.5 percent growth target.

German exports in March declined at the fastest pace since last May, and imports fell for the first time this year, as the Ukraine crisis and the slowdown in China weighed on demand.

The S&P/TSX Composite Index closed Friday at 14,534.06, down 11.97 points or 0.08 percent. The index scaled an intraday high of 14,580.90 and a low of 14,491.89.

On Thursday, the main index settled lower, dragged down by energy stocks with lower oil prices, even as investors weighed some encouraging data from the U.S. and China.

Crude oil prices ended lower Friday amid lingering concerns over the ongoing unrest in Ukraine, with Russian separatists reportedly going ahead with a referendum on sovereignty this weekend despite advise from the Kremlin to the contrary.

The Energy Index dropped 0.58 percent, with U.S. crude oil futures for June delivery dropping $0.27 or 0.3 percent to close at $99.99 a barrel Friday on the Nymex.

Among other energy stocks, Husky Energy Inc. (HSE.TO) gained 0.22 percent, Canadian Natural Resources Ltd. (CNQ.TO) dropped 0.23 percent, and Suncor Energy Inc. (SU.TO) slipped 0.12 percent.

Crew Energy Inc. (CR.TO) plummeted 8.13 percent after reporting a loss of $1.07 per share for the quarter, badly missing the analysts' consensus estimate.

Canadian Oil Sands Limited (COS.TO) gained 1.25 percent, while Talisman Energy Inc. (TLM.TO) dived 3.37 percent. BlackPearl Resources Inc. (PXX.TO) plummeted 10.83 percent after cutting its production projections yesterday.

The Capped Healthcare Index gained 0.80 percent as Catamaran Corp. (CCT.TO) gained 3.29 percent and Valeant Pharmaceuticals International, Inc. (VRX.TO) added 0.63 percent.

Gold futures ended lower as the dollar trended higher on some positive economic data, even as the precious metal struggled to find support with developments in Ukraine.

The Global Gold Index edged gained 0.19 percent, with gold futures for June delivery inching down $0.10 to close at $1,287.60 an ounce Friday on the Nymex.

Among gold stocks, Yamana Gold Inc. (YRI.TO) gained 0.90 percent, Osisko Mining Corp. (OSK.TO) moved up 0.76 percent, Barrick Gold Corp. (ABX.TO) advanced 1.13 percent, and Agnico Eagle Mines Limited (AEM.TO) gained 0.97 percent. Kinross Gold Corp. (K.TO) added 2.08 percent.

The Capped Materials Index fell 0.05 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.33 percent.

The Financial Index dropped 0.24 percent with the Toronto-Dominion Bank (TD.TO) down 0.13 percent, Royal Bank of Canada (RY.TO) down 0.15 percent, The Bank of Nova Scotia (BNS) up 0.10 percent, and Bank of Montreal (BMO.TO) down 0.07 percent.

The Diversified Metals & Mining Index surrendered 0.23 percent, with Lundin Mining Corp. (LUN.TO) up 0.18 percent, First Quantum Minerals Ltd. (FM.TO) up 0.38 percent, and Teck Resources Limited (TCK.B.TO) down 0.20 percent.

The Information Technology Index edged up 0.05 percent, with BlackBerry Limited (BB.TO) up 0.13 percent, Constellation Software Inc (CSU.TO) up 0.41 percent, and Celestica Inc. (CLS.TO) up 0.99 percent.

Avigilon Corp. (AVO.TO) shed 4.91 percent.

The Capped Industrials Index fell 0.25 percent, with Bombardier Inc. (BBD.B.TO) up 0.24 percent and Air Canada (AC.B) down 3.11 percent.

In corporate news, Enerplus (ERF.TO) shed 3.08 percent after reporting first-quarter net income of C$40.03 million or 0.20 per basic share compared with a loss of C$16.39 million or $0.08 per basic share last year.

Rio Alto Mining Ltd (RIO.TO) gained 1.42 percent after reporting net income for the quarter ended March 31, 2014 of $11.9 million or $0.07 per share.

Tmx Group Ltd (X.TO) dropped 0.62 percent after reporting adjusted earnings per share of $1.05 for the first quarter, up 35% from 78 cents per share in the same quarter last year.

AutoCanada Inc. (ACQ.TO) slipped 2.22 percent after reporting its adjusted net earnings per share increased 14.3% to $0.40 in the first quarter from $0.35 per share last year.

Silver Wheaton (SLW.TO) added 0.21 percent after having reported net earnings of $79.8 million or $0.22 per share for first quarter 2014, down 40 percent from net earnings of $133.4 million or $0.38 per share in the first quarter of 2013.

On the economic front, a report from Statistics Canada showed the Canadian economy unexpectedly lost 28,900 net jobs in April. The April job losses follow a gain of 42,900 net new jobs in March.

The unemployment rate remained at 6.9 percent for the second straight month.

In economic news from the U.S., wholesale inventories rose more than expected in March, a report from the Commerce Department showed Friday. Inventories rose 1.1 percent in March, while anticipated a 0.4 percent increase. Wholesale inventories for February were revised up 0.7 percent, higher than the prior 0.5 percent reading.

From Europe, U.K. manufacturing output maintained growth momentum for the fourth consecutive month in March, with robust exports taking the visible trade gap to its lowest since December, a report from the Office for National Statistics showed Friday. Manufacturing output gained 0.5 percent in March from February and exceeded the 0.3 percent rise forecast by economists.

Meanwhile, industrial output dropped slightly by 0.1 percent, largely due to a plunge in oil and gas extraction. Production was forecast to decrease 0.2 percent after rising 0.8 percent in February.

Germany's trade surplus declined to a seasonally adjusted EUR 14.8 billion from EUR 15.8 billion in February. The unadjusted surplus, meanwhile, rose to EUR 16.4 billion from EUR 16.2 billion.

German exports fell 1.8 percent month-on-month in March, sharper than the 1.3 percent fall seen in February, data from Destatis revealed Friday. Economists had forecast a 1.3 percent rise. Imports slid 0.9 percent on a monthly basis, the first fall in three months, reversing a 0.4 percent rise in February. Economists expected a 0.6 percent increase for March.

China's Inflation eased notably to 1.8 percent in April from 2.4 percent in March, the National Bureau of Statistics said Friday. Overall inflation was slower than the expected 2.1 percent and remains within the government's full year 3.5 percent target.