TSX Ends Sharply Higher As Oil & Gold Stocks Surge -- Canadian Commentary

(RTTNews) - Canadian stocks rebounded to snap a five-day loss to end higher on Friday, tracking rising global equity markets, with surging oil prices helping energy and raw material stocks climb sharply.

The market received a boost after oil prices climbed back above $48 a barrel, while continued rebound in commodity prices, especially the surge in gold prices, carried mining and metal stocks higher at the end of the week. All major sectors of the main index ended in positive territory.

Investors continue to keep an eye on Europe after Switzerland shocked the market yesterday, after the Swiss National Bank unexpectedly decided to end the minimum exchange rate of CHF 1.2 per euro. The bank introduced the ceiling in September 2011 when the Swiss franc was exceptionally overvalued.

Investor sentiment has been strained by earnings reports from Goldman Sachs and Intel. Meanwhile, U.S. consumer prices for December logged their biggest decrease in six years and the preliminary read on consumer sentiment for January rose to its highest level since January 2004.

The benchmark S&P/TSX Composite Index closed Friday at 14,309.41, up 267.59 points or 1.91 percent. The index scaled an intraday high of 14,330.80 and a low of 14,043.83.

On Thursday, the index closed down 42.61 points or 0.30 percent, at 14,041.52. The index scaled an intraday high of 14,170.67 and a low of 14,017.17.

Crude oil soared to end sharply higher after the International Energy Agency slashed its forecast for non-OPEC supplies this year, adding that the sharp plunge in crude prices could help bolster demand for OPEC oil.

Prices were boosted when the International Energy Agency said the collapse in oil prices is expected to curtail non-OPEC oil production this year. The report hints that OPEC's strategy of crushing U.S. shale and Canadian oil sands competition may be working.

The Energy Index soared 6.14 percent, with U.S. crude oil futures for March delivery surging $2.40 or 5.1 percent to close at $49.13 a barrel on the Nymex Friday.

Among energy stocks, Legacy Oil + Gas Inc. (LEG.TO) surged 10.16 percent, Canadian Natural Resources Limited (CNQ.TO) jumped 8.76 percent, Suncor Energy Inc. (SU.TO) added 5.20 percent, and Canadian Oil Sands Limited (COS.TO) soared 8.25 percent.

Encana Corp. (ECA.TO) jumped 6.73 percent, Crescent Point Energy (CPG.TO) gathered 5.84 percent and Cenovus Energy Inc. (CVE.TO) gained 6.81 percent.

The Diversified Metals & Mining Index surged 5.99 percent, as First Quantum Minerals Ltd. (FM.TO) soared 11.13 percent, and Lundin Mining Corp. (LUN.TO) gathered 7.25 percent.

Teck Resources Limited (TCK.B.TO) gained 4.72 percent, Finning International Inc. (FTT.TO) dropped 1.48 percent, Capstone Mining (CS.TO) added 6.50 percent, and HudBay Minerals (HBM.TO) added 5.44 percent.

Gold futures ended higher on some soft economic data from the U.S. with consumer prices dropping to a six-month low and industrial production also showing a moderate drop, albeit as expected. Gold prices had surged to a four-month high yesterday,

The Global Gold Index jumped 3.27 percent, with gold for February delivery adding $12.10 or 1.0 percent to settle at $1,276.90 on the New York Mercantile Exchange Friday.

Among gold stocks, Yamana Gold Inc. (YRI.TO) added 5.35 percent, Agnico Eagle Mines Limited (AEM.TO) gained 4.02 percent, and Goldcorp Inc. (G.TO) moved up 4.82 percent.

Kinross Gold Corp. (K.TO) added 1.90 percent, Eldorado Gold Corp. (ELD.TO) climbed 3.75 percent, Barrick Gold Corp .(ABX.TO) advanced 3.45 percent, and Franco-Nevada Corp. (FNV.TO) gathered 3.03 percent.

The Capped Materials Index gained 3.03 percent, mostly on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.26 percent.

The heavyweight Financial Index moved up 0.33 percent, as National Bank of Canada (NA.TO) dipped 0.53 percent, Toronto-Dominion Bank (TD.TO) gained 0.58 percent, and Bank of Nova Scotia (BNS.TO) added 0.46 percent.

Royal Bank of Canada (RY.TO) moved up 0.52 percent, while Bank of Montreal (BMO.TO) advanced 0.61 percent. Canadian Imperial Bank of Commerce (CM.TO) dropped 0.99 percent.

The Capped Industrials Index added 0.82 percent, as Bombardier Inc. (BBD.B.TO) dropped 5.86 percent. The aircraft maker announced around 1,000 job cuts having decided to halt production of its Learjet 85 business planes due to lack of demand. Bombardier also booked a $1.4 billion in pretax fourth-quarter costs.

Air Canada (AC.TO) moved up 0.51 percent.

The Information Technology Index gathered 1.42 percent, with BlackBerry Limited (BB.TO) adding 1.24 percent. The smartphone maker and Samsung yesterday denied reports of being in talks for a deal to enable the Korean electronic giant to acquire BlackBerry.

Among other tech stocks, Sierra Wireless (SW.TO) shed 1.24 percent and Constellation Software (CSU.TO) gained 1.52 percent.

The Healthcare Index gained 2.20 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) added 1.81 percent and Catamaran Corp. (CCT.TO) moved up 3.75 percent.

ENTREC Corp. (ENT.TO) plummeted 9.09 percent. The company announced that it expects to report full year 2015 revenues of C$200 million to C$240 million.

In economic news, a report from the Labor Department on Friday showed U.S. consumer price index dropped 0.4 percent in December following a 0.3 percent decrease in November. While the drop in prices came in line with economist estimates, it reflected the biggest monthly decrease since December of 2008. The continued drop in prices were largely due to another sharp decline in energy prices, which plummeted by 4.7 percent in December after tumbling by 3.8 percent in November.

U.S. industrial production in December fell modestly with utilities output showing a sharp pullback, a Federal Reserve report said Friday. The report said industrial production edged down by 0.1 percent in December after surging up by 1.3 percent in November. The modest pullback matched economist estimates.

Consumer sentiment in the U.S. has seen a significant improvement in January, a report from the University of Michigan on Friday. The report showed the preliminary reading on consumer sentiment index for January at 98.2 compared to the final December reading of 93.6. Economists had expected the index to climb to a reading of 94.1. With the much bigger than expected increase, the consumer sentiment index reached its highest level since January of 2004.

Meanwhile, International Monetary Fund Managing Director Christine Lagarde said late Thursday that global recovery faces strong headwind despite lower oil prices and higher growth in the United States. She The world growth is still too low, too brittle, and too lopsided, she told the Council on Foreign Relations in Washington. The IMF is set to publish its global growth forecasts next week.

Eurozone inflation turned negative in December, as initially estimated, for the first time in more than five years, final data from Eurostat showed Friday. The Harmonized Index of Consumer Prices fell 0.2 percent year-on-year in December, reversing the 0.3 percent rise in November. This was the biggest fall seen since September 2009, when prices decreased 0.3 percent.

Consumer prices declined for the first time since October 2009, when prices fell 0.1 percent.