Enthused by the positive developments in the ongoing European Summit, traders lapped up stocks across a variety of sectors in the Canadian market Friday morning pushing the resource-heavy main index up near a two-week high. European leaders agreed to take action to bring down Italy's and Spain's spiraling borrowing costs and to create a single supervisory body for euro zone banks by this year end.
Meanwhile, Canada reported that economic growth accelerated for a second month in April, with the GDP edging up 0.3 percent.
The S&P/TSX Composite Index gained 138.30 points or 1.21 percent to 11,563.00, after adding nearly 100 points or 1 percent in the past three sessions.
The Diversified Materials Index was the major gainer adding nearly 4 percent, with Inmet Mining (IMN.TO) and First Quantum Minerals (FM.TO) gaining around 5 percent each. Teck Resources (TCK_B.TO) gathered close to 3 percent.
The price of crude oil was rebounding Friday morning, with Crude for August adding $4.50 to $82.19 a barrel..
In the oil patch, Trilogy Energy (TET.TO) gained 7 percent. MEG Energy (MEG.TO), Suncor Energy (SU.TO) and Imperial Oil (IMO.TO) were up up around 4 percent each.
The price of gold was paring recent losses as hopes for a positive outcome from the EU summit increased. Gold for August gained $47.80 to $1,598.20 an ounce.
Among gold plays, Alamos Gold Inc. (AGI.TO) soared 8 percent, while Detour Gold (DGC.TO) was adding 6 percent.
Silver miner Tahoe Resources Inc. (THO.TO) recovered 8 percent after reporting that government-proposed mining law reforms in Guatemala should not affect its Escobal project. Media reports released yesterday morning outlined a proposal from President Perez Molina's administration to allow state ownership in mining projects. Yesterday the stock shed 23 percent.
Meanwhile, Research In Motion (RIM.TO) plummeted 19 percent after reporting a first quarter net loss that came in much wider than consensus estimates. The smartphone maker said it turned to a loss for the first quarter, stung mainly by a 43 percent plunge in sales and hefty impairment charges. The company reported first quarter net loss of $518 million or $0.99 per share, compared to net income of $695 million or $1.33 per share last year. Analysts were expecting the company to report a loss of $0.01 per share for the quarter.
Junior oil and gas company Sure Energy Inc. (SHR.TO) moved down over 3 percent after announcing that it has sold its Beaverhill Lake land interests and approximately 60 barrels of oil per day of associated production for $9 million.
Telecommunications equipment company Exfo Inc (EXF.TO) edged down 0.75 percent after slipping into the red in third quarter, reporting net loss of $3.90 million or $0.06 per share compared to a net profit of $1.80 million or $0.03 per share last year. Analysts were expecting the company to report earnings C$0.03 per share for the quarter. Looking ahead, the company expects fourth-quarter IFRS net loss in the range of $0.11 and $0.07 per share
In economic news, Statistics Canada said economic growth accelerated for a second month, with the nation's real gross domestic product growing 0.3 percent in April, after edging up 0.1 percent in March. Most of the April increase was attributable to mining and oil and gas extraction and, to a lesser extent, wholesale trade.
From the U.S., according to figures released by the Commerce Department, personal income increased by $25.4 billion or 0.2 percent for May, with disposable incomes increasing by the same 0.2 percent margin. Consumer spending decreased by $4.7 billion for the month, though, because that represents a decrease of less than 0.1 percent, Commerce Department figures record it as a 0.0 percent change. Most economists had expected to see personal incomes rise slightly faster, forecasting a 0.3 percent increase, though the figures released for May matched the 0.2 percent growth in incomes recorded for April.
Elsewhere, the euro zone annual inflation remained unchanged at 2.4 percent in June, flash estimate released by Eurostat showed. Though the rate remained comfortably above the central bank's target, the European Central Bank feels that there is no inflation risk at present in the euro area. The June inflation rate was the lowest since February 2011 and was in line with economists' expectations.
Meanwhile, German retail sales fell unexpectedly in May for the second month in a row. Sales were down by real 0.3 percent month-on-month in May, marking a second consecutive monthly fall, the latest figures from the Federal Statistical Office showed. The outcome was in contrast to expectations for an increase of 0.2 percent and follows a 0.2 percent drop in April.
by RTT Staff Writer
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