TSX Falters After Positive Start, Ends Slightly Lower

(RTTNews) - The Canadian stock market failed to hold early gains and ended on a negative note on Monday, as shares from industrials, consumer discretionary, telecom and materials sections drifted lower on selling pressure.

Energy stocks, however, traded firm right through the session, tracking higher crude oil prices.

Investors, looking for direction amid persistent worries about U.S.-China trade tensions, appeared a bit reluctant to make significant moves at higher levels.

Despite upbeat data on wholesales sales, investors chose to stay away on the sidelines. According to Statistics Canada's report, Canadian wholesales sales increased by 1.5% in July, much more than economists' expectations for a 0.5% increase.

The benchmark S&P/TSX Composite Index ended down 16.81 points, or 0.10%, at 16,207.32, after scaling a high of 16,276.90 and a low of 16,198.69 intraday. On Friday, the Index ended up 9.38 points, or 0.06%, at 16,224.13.

The Capped Energy Index climbed up 2.46%. ARC Resources (ARX.TO) rallied nearly 5%, Encana Corporation (ECA.TO) gained 3.75%, Cenovus Energy Inc. (CVE.TO) added 3.4%, Imperial Oil (IMO.TO) ended 3.7% up, Husky

Energy Inc. (HSE.TO) ended 3.6% up. Tourmaline Oil Corp. (TOU.TO) gained 3.2% and PrairieSky Royalty (PSK.TO) moved up 3%.

Vermilion Energy Inc. (VET.TO) advanced by 2.5%, while Suncor Energy Inc. (SU.TO) gained 1.35% and Canadian Natural Resources (CNQ.TO) ended nearly 2% up.

The Capped Materials Index declined by 0.62%. First Quantum Minerals (FM.TO) plunged more than 7% and Teck Resources (TECK.B.TO) ended 3.4% down. Franco-Nevada Corporation (FNV.TO) eased by 1.2%, Wheaton Precious Metals Corp. (WPM.TO) ended 1.1% down and CCL Industries Inc. (CCL.B.TO) declined by about 2%.

Barrick Gold Corporation (ABX.TO) jumped 5.6%, lifted by an announcement from the company that it will acquire Randgold Resources for $7.9 billion in stock to create the world's largest gold miner. As per the deal, investors will receive 6.128 new Barrick shares for each Randgold share they hold. Shareholders in Barrick will own about 66.6% of the merged company, which will combine Randgold's African mines with Barrick's holdings in the Americas.

In the Industrials space, Canadian National Railway (CNR.TO) and Bombardier Inc. (BBD.B.TO), both ended nearly 2% down. SNC-Lavalin Group Inc. (SNC.TO) and CAE Inc. (CAE.TO) also ended notably lower, while Toromont Industries (TIH.TO) moved up 2.3%.

Among consumer discretionary stocks, Dollarama Inc. (DOL.TO) declined by 3.2%, Magna International Inc. (MG.TO), Canadian Tire Corporation (CTC.A.TO), Gildan Activewear Inc. (GIL.TO) and Linamar Corporation (LNR.TO) also posted losses.

Canada Goose Holdings Inc. (GOOS.TO) gained 1.2% and Great Canadian Gaming Corporation (GC.TO) ended with a gain of 2.1%.

Among bank stocks, Royal Bank of Canada (RY.TO) and Canadian Imperial Bank of Commerce (CM.TO) posted modest gains. Toronto-Dominion Bank (TD.TO), Bank of Nova Scotia (BNS.TO) and National Bank of Canada (NA.TO) ended modestly lower, while Bank of Montreal (BMO.TO0 ended flat.

The Capped Telecommunications Index ended 1.18% down. Cogeco Communications Inc. (CCA.TO), BCE Inc. (BCE.TO), Telus Corporation (T.TO), Rogers Communications Inc. (RCI.B.TO) and Shaw Communications Inc. (SJR.B.TO) lost 0.8% to 2%.

TeraGo Inc. (TGO.TO) surged up 2.3%. The company announced that it has entered into a definitive share purchase agreement under which TeraGo Networks Inc., a wholly-owned subsidiary of TeraGo, will acquire shares of Mobilexchange Spectrum Inc. and its parent holding company Mobilexchange Spectrum Holdings Inc.

Empire Company Limited (EMP.A.TO) shares gained more than 2.5% after the company announced that it has signed an agreement to acquire Farm Boy, a fast growing food retailer, for a total enterprise value of $800 million.

Asian markets ended mostly lower on Monday as Beijing canceled upcoming talks with the Washington and a new round of tariffs between China and the United States came into effect, ending hopes of a resolution to the trade dispute.

Among the markets in Asia, Japan, South Korea, China and Taiwan were closed for public holidays.

European stocks ended lower amid trade concerns. Downbeat business confidence data from Germany also weighed on markets.

According to the survey data from Mannheim-based Ifo institute, Germany's business confidence weakened slightly in September, falling to 103.7, from 103.9 in August. Economists had forecast the score to drop to 103.2 from the originally estimated 103.8 in August.

The current assessment indicator stood at 106.4 in September versus revised 106.5 a month ago. Nonetheless, the score was above the forecast of 106. At the same time, the expectations index came in at 101.0 in September, down from 101.3, but above the forecast of 100.5.

Meanwhile, UK manufacturing orders deteriorated in September as export order books faded a little, the Industrial Trends Survey from the Confederation of British Industry showed Monday.

The U.S. market ended lower with stocks losing ground amid U.S.-China trade war concerns. Investors were also looking ahead to the Federal Reserve's two-day monetary policy meeting, which wraps Wednesday and is likely to result in another interest-rate hike.

In commodities, crude oil futures for November ended up $1.30, or 1.8%, at $72.08 a barrrel on the New York

Mercantile Exchange, the highest settlement in 2-1/2 months.

Gold futures for December ended up $3.10, or 0.30%, at $1,204.40 an ounce.

On Friday, gold futures ended down $10.00, or 0.80%, at $1,201.30 an ounce, the lowest close in about a week. Silver futures for December ended lower by $0.018, at $14.341 an ounce.

Copper futures for December ended down $0.0215, at $2.8360 per pound.