TSX Ends Slightly Higher On Gold Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks ended a shade higher for a third straight session Tuesday, led by gold and materials stock with energy shares taking a hit after crude prices came under pressure after the International Energy Agency slashed its demand growth forecast for the year and the next year.

Investors also tracked weak European markets on the back of some soft data on German economic confidence while closely monitoring the developments in Ukraine.

Tensions in Ukraine continued to persist, with reports that a convoy of 280 Russian trucks carrying humanitarian aid is headed for Ukraine. This has raised some fresh concerns with Ukraine fearing the aid could be a pretext for sending in troops. Ukraine has therefore indicated it would not allow entry to the trucks unless Russia adheres to protocol and send the aid under the leadership of the Red Cross.

Corporate earnings reports provided some cues, with gold stocks surging, tracking higher bullion prices.

The S&P/TSX Composite Index closed Tuesday at 15,274.23, up 12.59 points or 0.08 percent. The index scaled a intraday high of 15,319.87 and a low of 15,229.69.

Crude oil ended lower ahead of the official crude supply data due Wednesday, with investors continuing to keep a close watch on the developments in Ukraine and the Middle East. Meanwhile, the International Energy Agency lowered its preliminary oil demand outlook for this year and 2015, contributing to a slip in oil prices.

The Energy Index dropped 0.63 percent, with U.S. crude oil futures for September delivery shedding $0.71 or 0.7 percent to close at $97.37 a barrel Tuesday on the Nymex.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) dipped 1.43 percent, Enbridge Inc. (ENB.TO) slipped 0.78 percent, Suncor Energy Inc. (SU.TO) dropped 1.55 percent, Talisman Energy (TLM.TO) shed 0.74 percent, Encana Corp. (ECA.TO) surrendered 1.72 percent, and Cenovus Energy Inc. (CVE.TO) dropped 0.45 percent.

The Healthcare Index gained 0.34 percent with Valeant Pharmaceuticals Inc. (VRX) up 0.93 percent, Catamaran Corp. (CCT.TO) down 1.08 percent, and Extendicare Inc. (EXE.TO) up 1.10 percent.

The Financial Index added 0.17 percent Toronto-Dominion Bank gathering 0.28 percent, National Bank of Canada (NA.TO) up 0.06 percent, and Bank of Nova Scotia (BNS.TO) up 0.14 percent.

Canadian Imperial Bank Of Commerce (CM.TO) added 0.37 percent, Royal Bank of Canada (RY.TO) gained 0.09 percent, and Bank of Montreal (BMO.TO) advanced 0.18 percent.

Gold futures ended a tad higher with investors awaiting further cues on U.S. monetary policy amid lingering geopolitical tensions.

Global Gold Index gained 1.77 percent, with gold futures for December delivery inching up $0.10 to close at $1,310.60 an ounce on the Nymex Tuesday.

Among gold stocks, B2Gold Corp. (BTO.TO) added 3.06 percent, Yamana Gold Inc. (YRI.TO) moved up 1.56 percent, Barrick Gold Corp. (ABX.TO) gathered 2.40 percent, Goldcorp Inc. (G.TO) was up 2.07 percent, Kinross Gold Corporation (K.TO) gained 2.09 percent, and Eldorado Gold Corp. (ELD.TO) jumped 4.63 percent.

Franco-Nevada (FNV.TO) shares added 2.59 percent and Sandstorm Gold Inc. (SSL.TO) gained 2.16 percent after having entered into a US$120-million stream financing agreement with True Gold Mining Inc. (TGM.TO) to assist in funding the construction of the Karma Project in Burkina Faso, West Africa. True Gold Mining Inc. added 7.50 percent.

The Capped Materials Index gained 0.94 percent on gold mining stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.89 percent.

The Diversified Metals & Mining Index dropped 0.30 percent, with First Quantum Minerals Ltd. (FM.TO) down 0.04 percent, Lundin Mining Corp. (LUN.TO) up 1.03 percent, and Teck Resources Limited (TCK.B.TO) down 2.52 percent.

The Capped Industrials Index shed 0.26 percent, with Bombardier Inc. (BBD.B.TO) up 0.26 percent and Air Canada (AC.B.TO) down 0.23 percent.

The Capped Telecommunications Index added 0.37 percent, with Rogers Communications Inc. (RCI.B.TO) adding 1.01 percent, Manitoba Telecom Services Inc. (MBT.TO) up 0.35 percent, Telus Corp. (T.TO) up 0.03 percent, and BCE Inc. (BCE.TO) down 0.02 percent.

The Information Technology Index surrendered 0.64 percent, with BlackBerry Limited (BB.TO) down 0.77 percent and Avigilon Corp. (AVO.TO) up 0.29 percent.

The Capped Utilities Index moved up 0.26 percent with Fortis Inc. (FTS.IR.TO) moving up 0.24 percent.

Meanwhile, shares of Tekmira Pharmaceuticals Corporation (TKM.TO) plunged 21.63 percent.

Ainsworth Lumber Co. Ltd. (ANS.TO) shed 0.40 percent after reporting a second-quarter profit of $12.8 million, compared to $2.6 million in the year ago quarter.

Cascades Inc. (CAS.TO) gained 1.98 percent after reporting a second-quarter net loss of C$83 million or C$0.88 per share, including specific items, compared with net earnings of C$2 million or C$0.03 per share, in the same quarter last year. Excluding specific items, net income would have totaled C$7 million or C$0.08 per share in the second quarter of 2014.

Turquoise Hill Resources Ltd. (TRQ.TO) added 0.54 percent after reporting second quarter net income of $9.6 million ($0.00 per share), compared to a net loss of $105.4 million ($0.08 per share) in the same quarter last year.

Huntingdon Capital Corp. (HNT.TO) jumped 11.81 percent after announcing that it will be acquired by Slate Capital Corporation in a cash deal at a price of C$13.40 per share.

In economic news, German economic confidence weakened sharply to its weakest level since December 2012 as geopolitical tensions weighed on analyst expectations, a survey from the Mannheim-based Centre for European Economic Research /ZEW showed Tuesday.

The indicator of economic sentiment plunged by 18.5 points to 8.6 in August, while it was forecast to drop to 17.