TSX Ends Lower As Energy, Mining Stocks Decline -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a third straight session on Friday, driven by declining energy and mining stocks as commodity prices ticked sharply higher.

Meanwhile, tensions in the Middle East continued unabated with militants gaining ground over government forces. Saudi Arabia and Iran are seen in a proxy battle for control of Yemen, where fighting has raged between rebels and government forces.

Markets in Europe turned in a mixed performance at the end of the trading week. Geopolitical concerns lingered, but optimism emerged that the conflict in Yemen would have little effect on oil supplies. Economic data was viewed positively, after German import prices declined at a slower-than-expected pace in February.

Markets in the U.S. ended largely in positive territory, with some mixed economic data out of the U.S. earlier today showed economic activity in the U.S. grew at an unrevised rate in the fourth quarter of 2014. The report said gross domestic product increased by 2.2 percent in the fourth quarter, unchanged from the growth estimated last month.

Meanwhile, consumer sentiment in the U.S. deteriorated less than previously estimated in March,

The benchmark S&P/TSX Composite Index closed Friday at 14,812.42, down 57.38 points or 0.39 percent. The index scaled an intraday high of 14,897..78 and a low of 14,717.68.

On Thursday, the index closed down 59.57 points or 0.40 percent, at 14,869.80. The index scaled an intraday high of 14,996.74 and a low of 14,848.99.

Crude oil ended higher on speculation that concerns over the Yemen military operations may be overdone, amid concerns of oil shipment disruption from the Middle East after Saudi Arabia launched air strikes on Yemen.

The Energy Index shed 0.91 percent, with U.S. crude oil futures for May delivery, the most actively traded contract, plunging $2.56 or 5.0 percent to settle at $48.87 a barrel on the New York Mercantile Exchange Friday.

Among energy stocks, Canadian Oil Sands Limited (COS.TO) fell 0.71 percent, Suncor Energy Inc. (SU.TO) moved up 0.22 percent, and Canadian Natural Resources Limited (CNQ.TO) gained 1.05 percent.

Crescent Point Energy Corp. (CPG.TO) dropped 2.41 percent, while Cenovus Energy Inc. (CVE.TO) shed 1.76 percent.

Encana Corp. (ECA.TO) dropped 2.13 percent, while Pacific Rubiales Energy Corp. (PRE.TO) dived 2.20 a share.

The Diversified Metals & Mining Index dropped 0.75 percent, as First Quantum Minerals Ltd. (FM.TO) dropped 1.27 percent, Lundin Mining Corp. (LUN.TO) added 0.78 percent, and Teck Resources Limited (TCK-B.TO) fell 2.73 percent.

Gold futures ended higher, tracking declining global equity markets with investors seeking the safe haven while staying off the riskier assets, due mainly to increased tensions in the Middle East.

The Gold Index inched up 0.10 percent, although gold for April delivery shed $5.00 or 0.4 percent to settle at $1,199.80 an ounce on the New York Mercantile Exchange Friday.

Among gold stocks, Kinross Gold Corp (K.TO) added 0.34 percent, Eldorado Gold Corp. (ELD.TO) fell 0.65 percent, Barrick Gold Corp. (ABX.TO) gained 0.85 percent, and Yamana Gold Inc. (YRI.TO) dived 1.43 percent.

The Capped Materials Index dropped 0.32 percent, as Potash Corp. of Saskatchewan Inc. (POT.TO) down 1.42 percent and Agrium Inc. (AGU.TO) shed 0.11 percent.

The heavyweight Financial Index dived 0.85 percent, with Bank of Nova Scotia (BNS.TO) down 0.48 percent and Bank of Montreal (BMO.TO) down 0.78 percent.

National Bank of Canada (NA.TO) dipped 1.31 percent, while Toronto-Dominion Bank (TD.TO) fell 0.90 percent. Canadian Imperial Bank of Commerce (CM.TO) dived 0.60 percent, while Royal Bank of Canada (RY.TO) surrendered 0.86 percent.

The Health Care Index gained 0.58 percent, as Valeant Pharmaceuticals International (VRX.TO) ended flat at $247.43 after closing a registered offering of common shares in the United States.

Catamaran Corp. (CCT.TO) added 0.86 percent, and Extendicare Inc. (EXE.TO) ended flat.

The Capped Industrials Index fell 0.19 percent, as Air Canada (AC.TO) added 2.00 percent and Bombardier Inc. (BBD.B.TO) shed 0.40 percent.

The Information Technology Index added 0.50 percent, as BlackBerry (BB.TO) gained 2.76 percent, after reporting fourth quarter adjusted earnings of $0.04 per share, topping the consensus estimate of a loss of $0.05 per share.

Sierra Wireless, Inc. (SW.TO) added 2.13 percent, while Descartes Systems Group Inc. (DSG.TO) gained 2.02 percent.

The Capped Telecommunication Index gained 0.40 percent, with Rogers Communications Inc. (RCI.B.TO) up 0.88 percent, BCE Inc. (BCE.TO) up 0.99 percent, and TELUS Corp. (T.TO) inching up 0.07 percent.

Savanna Energy Services (SVY.TO) tanked 7.96 percent, after it eliminated its dividend.

CNOOC (CNU.TO) is climbed 6.42 percent, after revealing a 6.6 percent increase in full year 2014 net profit.

DirectCash Payments (DCI.TO) gained 2.50 percent, having reported a fourth quarter profit of $0.06 per share, compared to the loss of $0.07 a year ago. The company also announced an ATM branding deal with the Bank of Montreal.

Baylin Technologies (BYL.TO) fell 5.17 percent. The company's Board has appointed Randy Dewey as Interim President and CEO, effective immediately, following the departure of Ephraim Ulmer.

Alter NRG (NRG.TO) soared 137.82 percent, after agreeing to be acquired by Harvest International New Energy.

On the economic front, U.S. data came in mixed with fourth quarter GDP unrevised and a better than expected consumer sentiment report.

Economic activity in the U.S. grew at an unrevised rate in the fourth quarter of 2014, a final estimate from the Commerce Department showed Friday. Gross domestic product increased by 2.2 percent in the fourth quarter, unchanged from the growth estimated last month. Economists expected the pace of GDP growth to be upwardly revised to 2.4 percent, which would still reflect a notable slowdown from the 5.0 percent growth seen in the third quarter.

Consumer sentiment in the U.S. deteriorated by less than previously estimated in March, a report from the University of Michigan showed Friday. The final reading on the consumer sentiment index for March came in at 93.0 compared to the mid-month reading of 91.2. Economists expected a reading of 92.1, but was still below the final February reading of 95.4.

Germany's import prices declined at a slower-than-expected pace in February, figures from Destatis showed Friday. The import price index fell 3.0 percent year-over-year in February, below economists' expectations for a 3.9 percent decrease.

At the same time, German export price index climbed at a faster pace of 0.7 percent annually in February, following a 0.4 percent rise in the prior month. It was the sixth successive monthly increase.

U.K. house price growth softened for the seventh consecutive month to an 18-month low in March, the Nationwide Building Society reported Friday. House prices advanced 5.1 percent year-on-year in March, slower than February's 5.7 percent increase and a 5.3 percent rise forecast by economists. This was the slowest rate of growth since September 2013.

However, U.K. house prices rose 0.1 percent on a monthly basis offsetting a 0.1 percent drop seen in February. Economists had forecast a steeper 0.2 percent rise for March.

French consumer confidence improved as expected to the highest level since 2010, survey data from the statistical office Insee showed Friday. The households' consumer confidence index came in at 93 in March versus 92 in February. This was the highest score since November 2010 and came in line with expectations.