TSX Ends Higher On Agrium Gains -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a second straight session on Friday, after some strong rally by Agrium offset sharp declines in the energy and mining sector, with some fairly stable new home sales data from the U.S.

The uptick was, however, limited on declining crude oil prices and worries over the health of eurozone banking industry weighed down the market.

Investors also look ahead to the U.S. Federal Reserve's monetary policy meeting next week.

Despite recent upbeat economic reports, it is widely expected that the Fed may not hike interest rates anytime soon. As well, there are indications the Fed may delay the end of its asset buying program.

The benchmark S&P/TSX Composite Index closed Friday at 14,543.82, up 56.99 points or 0.39 percent. The index scaled a intraday high of 14,569.42 and a low of 14,436.64.

On Thursday, the index closed 1.22 percent higher on some upbeat Canadian earnings reports and a slightly better than expected U.S. jobless claims data lifting sentiment. A strong reading of U.S. economic indicators and some fairly encouraging economic data from China and the eurozone also aided sentiment.

Fertilizer producer Agrium Inc. (AGU) surged 7.62 percent after ValueAct Capital Management LLC disclosed a 5.7 percent stake in the company. News reports suggest ValueAct Capital backs CEO Chuck Magro abilities and believes the company's wholesale business is consolidating.

Crude oil ended sharply lower on Friday, on demand growth concerns after news of strong supply from the Middle East with markets discounting reports that Saudi Arabia has cut its crude output.

The Energy Index dropped 1.27 percent, with U.S. crude oil futures for December delivery diving $1.08 or 1.3 percent to close at $81.01 a barrel on the Nymex Friday.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) dropped 1.54 percent, Talisman Energy Inc. (TLM.TO) fell 3.05 percent, Cenovus Energy Inc. (CVE.TO) down 1.68 percent, Husky Energy (HSE.TO) slipped 0.83 percent, and Suncor Energy Inc. (SU.TO) shed 0.36 percent.

Enbridge Inc. (ENB.TO) is up 0.32 percent after the company in a regulatory filing said its design for the Line 9 pipeline through southern Ontario has the right shut-off valve configuration to minimize the risk to waterways and reservoirs in the event of a rupture.

The Healthcare Index gained 1.00 percent, with Valeant Pharmaceuticals Inc (VRX.TO) adding 0.84 percent, Catamaran Corp. (CCT.TO) up 2.43 percent, and Extendicare Inc. (EXE.TO) down 0.12 percent.

Gold futures ended on lingering concerns over the health of the eurozone economy, notwithstanding an unexpected improvement in German consumer sentiment in November.

The Global Gold Index dropped 0.41 percent, with gold for December delivery gaining 2.70 or 0.2 percent to settle at $1,231.80 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Kinross Gold Corp. (K.TO) shed 1.63 percent, Yamana Gold Inc. (YRI.TO) gained 0.48 percent, Barrick Gold Corp. (ABX.TO) added 0.40 percent, and Eldorado Gold Corp. (ELD.TO) gathered 0.39 percent.

.The Capped Materials Index gained 1.06 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 3.82 percent.

The heavyweight Financial Index moved up 0.25 percent, with Toronto-Dominion Bank (TD.TO) down 0.26 percent, Canadian Imperial Bank of Commerce (CM.TO) up 0.46 percent, Bank of Nova Scotia (BNS.TO) gathered 0.46 percent, Bank of Montreal (BMO.TO) moved up 0.47 percent, Royal Bank of Canada (RY.TO) edged down 0.04 percent, and National Bank of Canada (NA.TO) moved up 0.73 percent.

The Diversified Metals & Mining Index shed 0.70 percent, as First Quantum Minerals Ltd. (FM.TO) dropped 1.35 percent, Lundin Mining Corp. (LUN.TO) gathered 0.39 percent, and Teck Resources Limited (TCK.B.TO) edged down 0.06 percent.

The Capped Industrials Index added 0.79 percent, with Bombardier Inc. (BBD.B.TO) adding 1.32 percent and Air Canada (AC.B.TO) up 3.87 percent.

The Information Technology Index gained 0.86 percent, with smartphone maker BlackBerry Limited (BB.TO) shedding 0.95 percent.

Among other tech stocks, Descartes Systems Group Inc. (DSG.TO) gained 0.67 percent, Open Text Corp. (OTC.TO) is up 3.88 percent, Celestica Inc. (CLS.TO) up 1.56 percent, and CGI Group Inc. (GIB.A.TO) up 0.78 percent.

The Telecom Index advanced 0.82 percent with BCE Inc. (BCE.TO) up 0.56 percent, and TELUS Corp. (T.TO) up 1.36 percent.

The Consumer Staples Index jumped 2.44 percent, with Metro Inc. (MRU.TO) up 2.67 percent and Maple Leaf Foods Inc. (MFI.TO) up 4.80 percent.

Loblaw Companies Limited (L.TO) added 4.00 percent, while Alimentation Couche-Tard Inc. (ATD.B.TO) gained 2.75 percent. George Weston Limited (WN.TO) added 2.07 percent, while Empire Company Limited (EMP.A.TO) gathered 2.00 percent.

The Consumer Discretionary Index gained 1.09 percent with Magna International Inc. (MG.TO) up 1.95 percent, Thomson Reuters Corporation (TRI.TO) up 2.17 percent, and Amaya Gaming Group Inc. (AYA.TO) down 0.52 percent.

MTY Food Group Inc. (MTY.TO) gained 0.76 percent after announcing its subsidiaries will buy a group that operates Manchu Wok, Wasabi Grill & Noodle and SenseAsian restaurants in Canada and in the United States for $7.9 million.

On the economic front, a report from the U.S. Commerce Department showed new home sales to have inched up 0.2 percent to an annualized rate of 467,000 in September from the revised August rate of 466,000. Economists expected new home sales to drop to a rate of 460,000 from the 504,000 originally reported for the previous month.

In economic news from eurozone, German consumer confidence index rose slightly to 8.5 in November, up from 8.4 in the preceding month, a report from market research group GfK showed. The score was forecast to fall to 8.

Elsewhere in Europe, the U.K. economy grew at a slower pace in the third quarter in face of rising uncertainty stemming from global economic conditions, preliminary estimates from the Office for National Statistics Office showed Friday. Gross domestic product climbed 0.7 percent from the second quarter, when it grew 0.9 percent. The sequential growth rate was in line economists' expectations.

As expected, GDP was 3 percent higher in the third quarter compared with the same quarter a year ago. GDP was estimated to be 3.4 percent higher than the pre-economic downturn peak of the first quarter of 2008, ONS said.

There are concerns about about the health of eurozone banking industry with reports from Spanish new agency Efe indicating that eleven banks from six euro zone countries are set to fail the stress tests, with the results due on Sunday.