TSX Ends Modestly Higher On Energy Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks pared much of the early gains but still ended higher Monday, after some upbeat German business confidence data although markets remained subdued with investors awaiting cues from this week's closely-watched economic news from the U.S. and Canada. The main index was driven mainly by energy stocks with oil prices continuing to rise.

In economic news, German business confidence strengthened unexpectedly to its highest level since July 2011 with improvement in the current situation assessment more than offsetting the fall in expectations.

The S&P/TSX Composite Index closed Monday at 14,227.08, up 21.36 points or 0.15 percent. The index scaled an intraday high of 14,278.63 and a low of 14,205.72. The TSX ended strongly last week with a gain of 1.07 percent.

Gold futures ended higher as investors mulled over some disappointing data out of the U.S. lately, while continuing to seek the safe haven appeal of the precious metal.

The Global Gold Index moved up 0.16 percent, with gold futures for April delivery, the most actively traded contract, gaining $14.40 or 1.1 percent to close at $1,338.00 an ounce Monday on the Nymex.

Among gold stocks, Detour Gold Corp. (DGC.TO) added 3.37 percent, while Kinross Gold Corp. (K.TO) moved up 0.52 percent. Goldcorp Inc. (G.TO) slipped 0.39 percent, while Yamana Gold Inc. (YRI.TO) dropped 0.95 percent. However, Barrick Gold Corp. (ABX.TO) added 0.99 percent.

The Capped Materials Index dipped 0.39 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 1.13 percent.

Crude oil ended higher as prices were boosted by rumors of supply thinning out at key delivery points in the U.S., with the turmoil in the Middle East threatening to escalate with disruption of supplies from Libya.

The Energy Index gained 0.75 percent, with U.S. crude oil futures for April delivery, the most actively traded contract, adding $0.62 or 0.6 percent to close at $102.82 a barrel Monday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) dropped 0.29 percent and Talisman Energy Inc. (TLM.TO, TLM) slipped 0.60 percent, while Encana Corp. (ECA.TO, ECA) gained 2.09 percent. Cenovus Energy Inc. (CVE.TO) added 1.23 percent, while Suncor Energy Inc. (SU.TO) advanced 0.87 percent. Baytex Energy Corp. (BTE.R.TO) added 1.95 percent, while Canadian Oil Sands Limited (COS.TO) gained 0.87 percent.

The heavyweight Financial Index dropped 0.05 percent with Royal Bank of Canada (RY.TO) down 0.10 percent and the Bank of Nova Scotia (BNS.TO) up 0.30 percent. Bank of Montreal (BMO.TO) slipped 0.14 percent, while Toronto-Dominion Bank (TD.TO) dropped 0.42 percent.

The Diversified Metals & Mining Index surrendered 0.97 percent, with Teck Resources Limited (TCK.B.TO) dropping 2.99 percent and First Quantum Minerals (FM.TO) slipping 0.66 percent. Lundin Mining Corp. (LUN.TO) gained 0.19 percent.

The Information Technology Index added 0.23 percent, with BlackBerry Limited (BB.TO) surging 6.88 percent after announcing that its messenger service will be made available to Windows Phone and Nokia X customers shortly. The smartphone maker also indicted restoration of some popular function keys to future devices in an effort to win back old customers.

The Capped Industrials Index gained 0.89 percent, with Bombardier Inc. (BBD.B.TO) adding 1.71 percent.

In corporate news, RTG Mining Inc. (RTG.TO) and Sierra Mining Ltd. will combine in an all-stock deal in the mining sector, .

In economic news, German business confidence strengthened climbed to 111.3 in February with the score expected to remain unchanged at January's level of 110.6. This was the fourth consecutive rise in the confidence index.

Consumer prices in the Eurozone increased at a faster pace in January than estimated earlier, but the rate of inflation remained unchanged from the December level, revised data from Eurostat showed Monday. The harmonized index of consumer prices rose 0.8 percent year-on-year in January, which was unchanged from the December growth rate. The preliminary estimates were for a 0.7 percent growth in January.

Elsewhere in Europe, sentiment among U.K.'s service sector firms improved to an all-time high in the three months to February, recording growth for a third successive quarter, data from the Confederation of British Industry showed Monday.

Investor focus this week will be on the U.S. GDP data, as well as durable goods orders and consumer confidence.