TSX Ends Slightly Higher On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks moved up to end a tad higher on Thursday, on some mixed economic news from the U.S. with initial claims for unemployment benefits dropping and manufacturing activity in the Philadelphia region expanding more than expected in June. Nonetheless, the volatile situation in Iraq had investors treading cautiously amid concerns the fighting between insurgents and Iraq's military could leave the country on the brink of chaos.

The conflict in Iraq continued unabated with Iraqi Prime Minister Nuri al-Maliki once again calling on the U.S. for urgent help with air strikes against the jihadists.

Even as the Iraqi government claims to be in control of the country's biggest oil refinery at Beiji, there have been conflicting reports the ISIS were close to taking full control of the facility. Reports citing witnesses say Al Qaeda-backed Sunni Muslims have raised their flag over nation's largest oil refinery.

In other developments, Exxon Mobil Corp. and BP Plc have carried out a "major evacuation" of employees from Iraq, OPEC's second-largest oil producer, after insurgents seized cities north of Baghdad.

The main index was led by gold stocks, tracking higher bullion prices with technology stocks also among notable gainers.

The S&P/TSX Composite Index closed Thursday at 15,112.22, up 2.97 points or 0.02 percent. The index scaled an intraday high of 15,119.54 and a low of 15,081.93, edging closer to its all-time high of 15,154.77 recorded on June 6, 2008.

Crude oil ended higher after the situation in Iraq continued to deteriorate with increasing concerns over disruption in oil supplies even as the ongoing conflict between militants and government forces intensified.

The Energy Index slipped 0.24, with U.S. crude oil futures for July delivery, the most actively traded contract, adding $0.46 or 0.5 percent to close at $106.43 a barrel Thursday on the Nymex.

Among energy stocks, Canadian Natural Resources Ltd. (CNQ.TO) added 0.46 percent, Talisman Energy Inc. (TLM.TO) added 0.09 percent, Suncor Energy Inc.(SU.TO) dropped 0.80 percent, Cenovus Energy Inc. (CVE.TO) dipped 0.12 percent, and Encana Corp. (ECA.TO) surrendered 0.38 percent.

The Financial Index gained 0.30 percent with Royal Bank of Canada (RY.TO) down 0.35 percent, Toronto-Dominion Bank lost 0.20 percent, Bank of Montreal (BMO.TO) gained 0.35 percent, and Bank of Nova Scotia (BNS.TO) slipped 0.60 percent.

The Capped Healthcare Index dropped 0.21 percent with Extendicare Inc. (EXE.TO) up 0.95 percent, while Valeant Pharmaceuticals International, Inc. (VRX.TO) dropped 1.11 percent.

Gold futures surged to a two-month high on the deteriorating situation in Iraq and on comments from the U.S. Federal Reserve yesterday that it expects to hold rates at record low for an extended period of time.

The Global Gold Index surged 4.75 percent, with gold futures for August delivery soaring $41.40 or 3.3 percent to close at $1,314.10 an ounce Thursday on the Nymex.

Among other gold stocks, B2Gold Corp. (BTO.TO) soared 7.29 percent, Yamana Gold Inc. (YRI.TO) jumped 5.67 percent, and Barrick Gold Corp. (ABX.TO) gained 3.28 percent.

The Capped Materials Index jumped 1.84 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) up 0.17 percent.

The Diversified Metals & Mining Index surged 2.89 percent, with Lundin Mining Corp. (LUN.TO) gaining 1.27 percent, First Quantum Minerals Ltd. (FM.TO) up 1.50 percent, and Teck Resources Limited (TCK.B.TO) up 1.33 percent.

The Information Technology Index gained 1.07 percent, with BlackBerry Limited (BB.TO) surging 9.33 percent after reporting a first-quarter profit of $23.00 million, compared to net loss of $84 million in the same quarter last year. On a per share basis, net loss was $0.37, compared to a loss of $0.16 in the prior year.

Among other tech stocks, CGI Group Inc. (GIB.A.TO) dived 2.34 percent, Constellation Software Inc. (CSU.TO) gained 2.46 percent, and Avigilon Corp. (AVO.TO) dipped 3.26 percent.

The Capped Industrials Index dropped 0.30 percent, with Bombardier Inc. (BBD.B.TO) down 0.26 percent and Air Canada (AC.B) down 0.11 percent.

Canyon Services Group Inc. (FRC.TO) shares gained 4.92 percent after announcing a pre-acquisition agreement pursuant to which it will acquire Fraction Energy Services Ltd., a privately held company based in Calgary, Alberta for about $101.7 million, including the assumption of debt.

In economic news from the U.S., a report from the U.S. Labor Department showed initial jobless claims to have dipped to 312,000, a decrease of 6,000 from the previous week's revised level of 318,000. Economists had expected jobless claims to drop to 313,000 from the 317,000 originally reported for the previous week.

The Conference Board's Leading Economic Index rose by a slightly less than expected 0.5 percent in May, following a 0.3 percent increase in April.

Meanwhile, manufacturing activity in the Philadelphia region expanded at an unexpectedly faster rate to 17.8 in June, from 15.4 in the previous month. Economists had expected the index to drop to 14.0.

From Europe, British retail sales declined for the first time in four months in May due to a fall in food store sales after Easter spending boosted April sales. Retail sales volume including auto fuel dropped 0.5 percent in May from April, the Office for National Statistics said Thursday. This was the second fall in last five months and matched economists' expectations. In April, the volume advanced revised 1 percent on Easter sales.