TSX Ends Higher On Global Cues, Oil Strength -- Canadian Commentary

(RTTNews) - Canadian stocks ended higher for a fifth straight session on Friday, tracking rising global equity markets, boosted by rising crude oil prices and some positive economic growth data from the eurozone, led by the energy and mining sectors.

Markets in Europe extended their gains Friday, after easing concerns over Greece and the Ukraine sparked yesterday's strong gains. The ceasefire agreement that was announced Thursday is due to go into effect in eastern Ukraine on Sunday, although some intense fighting was reported in Debaltseve and Luhansk.

Greece and its international creditors reportedly held talks Friday on reforms needed to keep the country financed. The talks are said to increase the possibility of reaching an interim compromise deal at another eurozone finance ministers meeting scheduled for Monday.

Markets in the United States and Europe ended in the green, although somewhat capped by some weaker than expected consumer sentiment report.

After reporting U.S. consumer sentiment at an eleven-year high in the previous month, a University of Michigan report on Friday showed the index to have unexpectedly pulled back sharply in February.

The University of Michigan's preliminary consumer sentiment index for February tumbled to 93.6 from the final January reading of 98.1. The steep drop came as a surprise to economists, who had expected the consumer sentiment index to edge up to a reading of 98.5. The pullback reflects deterioration in both consumers' assessment of current conditions as well as expectations.

The benchmark S&P/TSX Composite Index closed Friday at 15,264.81, up 36.29 points or 0.24 percent. The index scaled an intraday high of 15,339.46 and a low of 15,256.73.

On Thursday, the index closed up 78.35 points or 0.52 percent, at 15,229.85. The index scaled an intraday high of 15,236.72 and a low of 15,114.87.

Crude oil soared to end sharply higher on improved market sentiments, with the eurozone economy indicating growth and declining rig counts in the U.S., even as oil producers continue to cut spending on drilling.

The Energy Index gained 0.90 percent with U.S. crude oil futures for March delivery, surging $1.57 or 3.1 percent to settle at $52.78 percent a barrel on the New York Mercantile Exchange Friday.

Among energy stocks, Pacific Rubiales Energy Corp. (PRE.TO) added 0.97 percent, Canadian Oil Sands (COS.TO) edged up 0.17 percent, and Encana Corp. (ECA.TO) gathered 2.63 percent. Niko Resources Ltd. (NKO.TO) surged 18.42 percent.

Canadian Natural Resources Limited (CNQ.TO) moved up 1.18 percent, while Crescent Point Energy (CPG.TO) gained 0.43 percent and Suncor Energy (SU.TO) added 0.77 percent.

Cenovus Energy (CVE.TO) fell 1.83 percent, while Talisman Energy (TLM.TO) shed 0.43 percent.

The Diversified Metals & Mining Index gained 2.77 percent, as Sherritt International Corp. (S.TO) surged 11.48 percent, First Quantum Minerals Ltd. (FM.TO) gathered 3.01 percent, Teck Resources (TCK-B.TO) gained 2.24 percent, HudBay Minerals (HBM.TO) added 2.27 percent, and Finning International Inc. (FTT.TO) gained 2.97 percent.

Gold futures ended higher as the dollar weakened after some soft economic data from the U.S. following the disappointing U.S. retail sales and unemployment claims data yesterday.

The Global Gold Index inched up 0.16 percent, with gold for April delivery gaining $6.40 or 0.5 percent to settle at $1,227.10 percent on the New York Mercantile Exchange Friday.

Among gold stocks, Goldcorp Inc. (G.TO) added 0.79 percent, Barrick Gold Corp .(ABX.TO) shed 0.20 percent, and Kinross Gold (K.TO) plunged 5.90 percent.

Franco-Nevada (FNV.TO) slipped 0.31 percent, while Silver Wheaton (SLW.TO) gathered 1.18 percent. Yamana Gold (YRI.TO) gained 3.0 percent, while Agnico Eagle Mines (AEM.TO) inched up 0.02 percent.

The Capped Materials Index added 0.62 percent, mostly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) shedding 0.26 percent and Agrium Inc. (AGU.TO) up 1.03 percent.

The heavyweight Financial Index added 0.44 percent, as Bank of Montreal (BMO.TO) gathered 0.24 percent, National Bank of Canada (NA.TO) climbed 0.13 percent, Royal Bank of Canada (RY.TO) moved up 0.15 percent, and Toronto-Dominion Bank (TD.TO) added 0.02 percent.

Bank of Nova Scotia (BNS.TO) gained 1.02 percent, while Canadian Imperial Bank of Commerce (CM.TO) advanced 0.53 percent.

The Capped Industrials Index shed 0.34 percent, with Bombardier Inc. (BBD.B.TO) shedding 4.09 percent, after having plunged 11.51 percent yesterday after reporting fourth quarter adjusted net income of $0.04 per share, down from $0.07 per share in the year-ago quarter.

Air Canada (AC.TO) gained 2.67 percent.

The Information Technology Index added 0.94 percent, as BlackBerry Limited (BB.TO) gaining 1.95 percent, Constellation Software (CSU.TO) gathered 1.23 percent, and Descartes Systems Group Inc. (DSG.TO) moved up 1.46 percent.

The Healthcare Index slipped 0.05 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) fell 0.70 percent, Extendicare Inc. (EXE.TO) dropped 0.29 percent, and Catamaran Corp. (CCT.TO) gained 0.93 percent.

The Capped Telecommunication Index inched up 0.05 percent, with BCE inching up 0.05 percent, TELUS Corp. (T.TO) dipped 0.18 percent, and Rogers Communications Inc. (RCI.B.TO) gathered 1.49 percent.

MTY Food Group (MTY.TO) shed 2.37 percent, after having reported fourth quarter earnings of $0.29 per share, down from $0.37 per share a year ago.

Microbix Biosystems Inc. (MB.TO) tanked 13.64 after the company reported break-even first quarter earnings, down from a profit of $0.002 per share last year.

Dream Unlimited (DRM.TO) surged 7.48 percent after reporting a fourth quarter profit of C$0.33 per share, compared to C$0.30 per share in the prior year period.

On the economic front, a U.S. Labor Department report on Friday showed another steep drop in import prices in January, with fuel prices showing a substantial decrease. The report said U.S. import prices plummeted by 2.8 percent in January after tumbling by a revised 1.9 percent in December. Economists expected prices to plunge by 3.0 percent compared to the 2.5 percent drop originally reported for the previous month.

Additionally, the Labor Department said export prices slumped by 2.0 percent in January following a revised 1.0 percent decrease in December. Export prices had been expected to fall by 0.8 percent compared to the 1.2 percent decline that had been reported for the previous month.

Eurozone economic growth picked up in the fourth quarter suggesting that lower oil prices and a weak euro boosted demand and in turn underpinned activity, flash estimates released by Eurostat showed Friday.

Nonetheless, the overall expansion in the 19-nation bloc was driven mainly by the power engine of the region, Germany. Meanwhile, other member nations exhibited diverging trends. Gross domestic product advanced 0.3 percent sequentially, faster than the 0.2 percent growth seen in the third quarter. The growth rate was expected to halt at 0.2 percent.

Germany's economic growth accelerated more-than-expected on domestic spending and exports in the fourth quarter, while investment dragged expansion in France.

German gross domestic product advanced 0.7 percent sequentially, much faster than a modest 0.1 percent rise in the prior quarter, data from Destatis revealed Friday. This was the fastest growth in three quarters and also exceeded a 0.3 percent rise forecast by economists.

The French economic growth slowed as expected in the fourth quarter, the statistical office Insee reported Friday. France's gross domestic product rose 0.1 percent sequentially, in line with forecast, but slower than third quarter's 0.3 percent expansion.

Elsewhere in Asia, a leading indicator of economic activity in China rose at a slower pace in January, a survey by the Conference Board showed Friday. The Conference Board's leading economic indicators index for China increased 0.9 percent month-on-month in January following the 1.1 percent rise in December.