TSX Ends A Tad Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks snapped a three-day loss to end slightly higher on Monday, helped by a surge in the health care sector even as some weak energy, mining and financial stocks capped gains. The main index was propped up health care stocks after Valeant Pharmaceuticals announced an agreement to buy Salix Pharmaceuticals for $10.1 billion.

Energy stocks dipped after oil prices dropped below $50 a barrel with commodity prices also under pressure. The market was also impacted by some disappointing U.S. economic data with existing home sales falling more than expected in January.

Markets in Europe ended largely in the positive, after Greece has reached an agreement with eurozone creditors to extend its bailout agreement for four months. The agreement is expected to help Greece avoid an economic crash and an ouster from the Eurozone, but Athens still has to provide details of its reform measures.

Greek finance minister Yanis Varoufakis has pledged to honor all debts and initiate reform to bring back the country to a financial stability. The minister added that the country would continue with painful reforms. However, Greece has postponed the presentation of its reform list to the eurozone to Tuesday.

Markets in the United States ended mixed with uncertainty over the near-term outlook for the markets leading to choppy trading on Wall Street, with investors apprehensive whether stocks can sustain their recent uptrend. A downgrade to Dow component Boeing also weighed on the index.

Investors were also keyed up ahead of Federal Reserve Chair Janet Yellen's testimony before the House and Senate for any cues as to when the interest rate hike may happen.

The benchmark S&P/TSX Composite Index closed Monday at 15,200.26, up 28.02 points or 0.18 percent. The index scaled an intraday high of 15,2204.59 and a low of 15,120.75.

On Friday, the index closed down 8.09 points or 0.05 percent, at 15,172.24. The index scaled an intraday high of 15,232.74 and a low of 15,124.30.

The Health Care Index surged 5.28 percent, with Valeant Pharmaceuticals International, Inc. (VRX.TO) jumping 15.05 percent. The Canadian drug maker agreed to acquire Salix Pharmaceuticals for $158.00 per share in cash. Salix Pharma is valued at about $14.5 billion including net debt.

Among other healthcare stocks, Extendicare Inc. (EXE.TO) dropped 1.45 percent, and Catamaran Corp. (CCT.TO) gathered 0.32 percent.

Gold futures ended lower as investors continued to track developments in the Greek financial crisis even as the precious metal attempts to recover after briefly dipping below $1200 an ounce.

The Gold Index climbed 0.44 percent, with gold for April delivery dropping $2.70 or 0.2 percent to settle at $1,204.90 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Yamana Gold (YRI.TO) gained 0.20 percent and Goldcorp (G.TO) added 0.71 percent. IAMGOLD (IMG.TO) rose 2.05 percent and Barrick Gold (ABX.TO) shedding 1.11 percent. Eldorado Gold (ELD.TO) climbed 2.93 percent.

The Capped Materials Index dipped 0.05 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) down 0.30 percent and Agrium Inc. (AGU.TO) gaining 1.38 percent.

Crude oil plunged to end sharply lower for a fourth straight session on concerns of oversupply, even as data showed a drop in rigs actively drilling for oil to have slowed than expected.

The Energy Index dropped 0.63 percent with U.S. crude oil futures for March delivery, shedding $1.36 or 2.7 percent to settle at $49.45 a barrel on the New York Mercantile Exchange Monday.

Among energy stocks, Pacific Rubiales Energy Corp. (PRE.TO) slipped 2.93 percent, Canadian Oil Sands (COS.TO) gained 0.63 percent, Penn West Petroleum Ltd. (PWT.TO) fell 6.41 percent and Encana Corp. (ECA.TO) dropped 1.25 percent.

Canadian Natural Resources Limited (CNQ.TO) dipped 0.27 percent, while Crescent Point Energy (CPG.TO) added 0.74 percent. Cenovus Energy (CVE.TO) shed 0.77 percent, while Talisman Energy (TLM.TO) added 1.24 percent.

Bankers Petroleum (BNK.TO) declined 3.21 percent, after announcing its subsidiary, Bankers Petroleum Albania Ltd., has reached a full and final settlement with BP Oil International Limited and has agreed to pay US$16.5 million inclusive of all costs and interest. in connection with a September 2013 lawsuit.

The Diversified Metals & Mining Index dropped 1.63 percent, as Sherritt International Corp. (S.TO) declined 1.24 percent, First Quantum Minerals Ltd. (FM.TO) added 0.93 percent, Teck Resources (TCK-B.TO) dropped 3.26 percent, and HudBay Minerals (HBM.TO) shed 2.97 percent. Finning International Inc. (FTT.TO) gained 1.20 percent,.

The heavyweight Financial Index dropped 1.01 percent, as Bank of Montreal (BMO.TO) shed 0.65 percent, National Bank of Canada (NA.TO) fell 1.16 percent, Royal Bank of Canada (RY.TO) dived 1.16 percent, and Toronto-Dominion Bank (TD.TO) surrendered 0.78 percent.

Bank of Nova Scotia (BNS.TO) inched down 0.51percent, while Canadian Imperial Bank of Commerce (CM.TO) dropped 1.31 percent.

The Capped Industrials Index fell 0.55 percent, with Bombardier Inc. (BBD.B.TO) down 2.08 percent and Air Canada (AC.TO) adding 0.48 percent.

Canadian National Railway Company (CNR.TO) is falling 1.12 percent. The company met the leadership of Unifor for several hours in Ottawa today with officials of the government's Federal Conciliation and Mediation Service but was unable to negotiate all terms of a new contract. However, the two parties will meet again first thing tomorrow morning in Ottawa to resume collective bargaining.

The Information Technology Index added 1.66 percent, as BlackBerry Limited (BB.TO) gained 1.32 percent, Constellation Software (CSU.TO) moved up 0.74 percent, and Descartes Systems Group Inc. (DSG.TO) gathered 0.83 percent.

The Capped Telecommunication Index dropped 0.36 percent, with BCE down 0.16 percent, TELUS Corp. (T.TO) up 0.41 percent, and Rogers Communications Inc. (RCI.B.TO) dropping 0.52 percent.

Capital Power (CPX.TO) dived 5.39 percent, after the company reported fourth quarter funds from operations of $102 million, down from $110 million a year ago.

Supremex Inc. (SXP.TO) added 3.33 percent, after reporting fourth quarter earnings that were flat with last year at C$0.09 per share.

On the economic front, existing home sales in the U.S. fell more than anticipated in January, a report from the National Association of Realtors showed Monday. Existing home sales tumbled 4.9 percent to an annual rate of 4.82 million in January from an upwardly revised 5.07 million in December. Economists expected sales to fall to a rate of 4.95 million from the 5.04 million originally reported for the previous month.

German business confidence improved for a fourth consecutive month in February to its highest level in seven months, but the pace of strengthening was modest amid concerns over the uncertainty surrounding the Greek situation. The Ifo Business Climate in February climbed to 106.8 from January's 106.7. Economists had forecast a stronger score of 107.6. The latest reading, however, was the best since July last year, when it was 108.1.

British retail sales growth eased sharply in February to its weakest level since late 2013, after six months of robust performance, survey data from the Confederation of British Industry revealed Monday. The balance of the CBI's distributive trades survey dropped to +1 from +39 in January. Economists were looking for a figure of +35.